Document:

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Exhibit 10.1

GENERAL MOTORS 2002 STOCK INCENTIVE PLAN

As Amended March 20, 2007

     1. The purposes of the General Motors 2002 Stock Incentive Plan (this “Plan”) are to
provide incentive for the creation of stockholder value and provide employees with the opportunity
for long-term capital accumulation through the grant of options and restricted stock units to
acquire shares of Common Stock, $12/3 par value (“Common Stock”) of General Motors
Corporation (the “Corporation”). Subject to such additional limitations or restrictions as may be
imposed as provided below, the term “employees” shall mean persons (a) who are employed by the
Corporation or any “subsidiary” (as such term is defined below), including employees who are also
directors of the Corporation or any such subsidiary, or (b) who accept (or previously have
accepted) employment, at the request of the Corporation, with any entity not described in (a) above
but in which the Corporation has, directly or indirectly, a substantial ownership interest. For
purposes of this Plan, the term “subsidiary” means (i) a corporation of which capital stock having
ordinary voting power to elect a majority of the board of directors of such corporation is owned,
directly or indirectly, by the Corporation or (ii) any unincorporated entity in respect of which
the Corporation can exercise, directly or indirectly, comparable control. The rights reserved
herein shall, among other things, permit the Executive Compensation Committee of the General Motors
Board of Directors (the “Committee”), as from time to time constituted pursuant to the by-laws of
the Corporation, to determine when, and to what extent, individuals otherwise eligible for
consideration shall become or cease to be, as the case may be, employees for purposes of this Plan
and to determine when, and under what circumstances, any individual shall be considered to have
terminated employment for purposes of this Plan. To the extent determined by the Committee, the
term employees shall be deemed to include former employees and any beneficiaries thereof.

     2. Subject to the provisions of paragraph 10, the aggregate number of shares of stock with
respect to which options and restricted stock units may be granted under this Plan shall not exceed
27,400,000 shares of Common Stock; provided, however, subject to the provisions of paragraph 10,
the maximum number of shares of stock which may be granted in the form of restricted stock units
under this Plan shall not exceed 1,000,000 shares of Common Stock. Subject to the provisions of
paragraph 10, no individual may be granted options in any calendar year covering more than
1,000,000 shares of Common Stock, and no individual may be granted restricted stock units in any
calendar year covering more than 250,000 shares of Common Stock. If, prior to June 1, 2007, all or
any portion of an option granted under this Plan or the 1997 Plan shall have expired or terminated
for any reason without having been exercised in full or all or any portion of a restricted stock
unit shall have failed to vest, the corresponding unpurchased or undelivered shares shall (unless
this Plan shall have been terminated) again become available for grant under the terms of this
Plan. In the event that any option granted hereunder or under the 1997 Plan is exercised through
the delivery of shares or in the event that withholding tax liabilities arising from any award are
satisfied by the withholding of shares by the Corporation, the number of shares available for
awards under the Plan shall be increased by the number of shares so surrendered or withheld.

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     3. The Committee may, at such time or times as it may determine prior to June 1, 2007,
establish for any calendar year a maximum number of shares, consistent with the provisions of
paragraph 2, to be awarded as stock options and restricted stock units for such year. To the extent
authorized by the Committee, the Chief Executive Officer may grant options and restricted stock
units, within the maximum number of shares established by the Committee, to employees selected by
him or her, except that no such grant may be made by the Chief Executive Officer to employees who
are executive officers of the Corporation or members of the Board of Directors. The Committee shall
make all grants of stock options and restricted stock units to employees who are executive officers
of the Corporation. Determinations as to whether the options granted shall be “incentive stock
options” within the meaning of Section 422, or any successor provision, of the Internal Revenue
Code of 1986, as amended (the “Code”), or non-qualified options, and as to any restrictions which
shall be placed on options and restricted stock units, shall be made by the Committee under such
procedures as it may, from time to time, determine.

     4. Except as provided in paragraph 9, the purchase price of the shares of stock under each
option shall be not less than 100% of the fair market value (but in no event less than the par
value) of such stock at the time the option is granted, such fair market value to be determined
based on the mean of the highest and lowest sales prices as reported for such class of stock in The
Wall Street Journal, or if such prices are not reported in The Wall Street Journal, in another
reliable, widely available source of such prices as designated by the Committee for the date of
grant. In accordance with such rules and procedures as the Committee may establish, the aggregate
fair market value (determined as of the time of option grant) of the stock with respect to which
incentive stock options granted and held by an employee which are exercisable for the first time by
such employee during any calendar year under this Plan and all other plans of the Corporation (and
any subsidiary or any parent corporation within the meaning of Section 424 of the Code, or any
successor provision), shall not exceed $100,000 (except that such amount may be adjusted by the
Committee as appropriate to reflect any amendment of Section 422 of the Code). The terms of any
incentive stock option granted hereunder shall comply in all respects with the provisions of
Section 422 of the Code, or any successor provision, and any regulations promulgated thereunder.

     5. Options granted under this Plan shall be subject to the following provisions, except as
otherwise determined by the Committee:

     5(a). Vesting and Exercise. Except in the case of death or except as set forth in
paragraph 5(d)(ii) or Paragraph 14, no option shall vest or become exercisable prior to the first
anniversary date of the date of the option grant (or such later date as may be established by the
Committee or its delegate(s)); and after such date options shall be exercisable only in accordance
with the terms and conditions established at the time of grant. Beginning on the first anniversary
date of the option grant, stock options will become exercisable in one-third increments. Subject to
paragraph 5(d), the first increment may be exercised on or after the first anniversary date and the
second and third increments may be exercised on or after the second and third anniversaries of the
date of grant. As a condition to the exercise of any option, an employee may be required, among
other things, to enter into such agreements as are considered by the Committee to be appropriate
and in the best interests of the Corporation.

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     5(b). Term of the Option. The normal expiration date of the option shall be determined
at the time of grant, provided that each such option shall expire not more than ten years and two
days after the date the option was granted or, in the case of an “incentive stock option,” ten
years after the date such option was granted.

     5(c). Conditions Precedent. Except for options that vest pursuant to paragraph 14, the
exercise of any option shall be subject to satisfaction of the following conditions precedent: (i)
that the employee refrain from engaging in any activity which, in the opinion of the Committee, is
competitive with any activity of the Corporation or any subsidiary, except that employment at the
request of the Corporation or with the specific approval of the Corporation, shall not be
considered to be an activity which is competitive with any activity of the Corporation or any
subsidiary; (ii) that the employee refrain from otherwise acting in any manner inimical or in any
way contrary to the best interests of the Corporation; and (iii) that the employee furnish to the
Corporation such information with respect to the satisfaction of the foregoing conditions precedent
as the Committee shall reasonably request. In addition, by accepting the grant of an option, the
employee will thereby agree to remain in the employment of the Corporation for a period of one year
after the date of exercise of any such option, unless such employment is terminated by death or
retirement.

     5(d). Termination of Employment. Notwithstanding the following provisions, the
Committee may at any time prior to any termination of employment under circumstances covered by
this clause, determine that options shall vest or terminate on the date of notice of termination of
employment, or such later date as it may deem appropriate. In addition, the Committee may from time
to time determine in its discretion that optionees retiring from the organization during specified
time periods under specified circumstances may vest and retain some portion of those options
granted in the year the retirement occurs.

	 	(i)	 	If an employee is terminated for cause or quits employment without the prior
written consent of the Corporation, all options (both vested and unvested) shall be
forfeited and terminate on the date of termination of employment or, if earlier, the
date cause exists.
	 
	 	(ii)	 	(A) This sub-paragraph (ii)(A) shall apply to options granted prior to
February 5, 2007. If an employee retires from the Corporation at age 62 or older with
ten or more years of credited service, subject to the other terms and conditions of
the Plan, all vested options granted prior to February 5, 2007 will remain exercisable
for the full remaining term.
	 
	 	 	 	(B) This sub-paragraph (ii)(B) shall apply to options granted on or after February
5, 2007. If an employee retires from the Corporation at age 55 or older with ten
or more years of credited service, subject to the other terms and conditions of the
Plan, all options granted on or after February 5, 2007 will vest immediately and
will remain exercisable until the expiration date of such option, including options
granted within the prior 12 months, provided that such employee shall have remained
employed until December 31 of the year of grant.
	 
	 	(iii)	 	If employment is terminated by reason of death, all options shall
immediately vest and remain exercisable until the third anniversary of the date of
death or, if earlier, the expiration date of such option.

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	 	(iv)	 	If an employee becomes disabled, unvested options will continue to vest while
the employee remains on the disability leave and, subject to the other terms and
conditions of the Plan, vested options will remain exercisable for the full remaining
term.
	 
	 	(v)	 	If employment terminates for any reason other than as set forth above
(including, for the avoidance of doubt, retirement not meeting the conditions set
forth in paragraph 5(d)(ii) or the voluntary termination of the employee with the
specific written agreement of the Corporation that options do not terminate on or
prior to the termination of employment), subject to the other terms and conditions of
the Plan, all vested options will remain exercisable until the third anniversary of
the date of termination of employment or, if earlier, the expiration date of such
option.
	 
	 	(vi)	 	If employment terminates for any reason (other than death) prior to the first
anniversary of the date an option is granted, except as provided in paragraph
5(d)(ii)(B) the option shall be forfeited and terminate on the date of termination of
employment.

     5(e). Forfeiture of Gains on Exercise. If the employee terminates employment in breach
of the covenants and conditions precedent set forth in Section 5(c) within one year after the date
of exercise of any stock option, the employee shall pay to the Corporation an amount equal to any
gain from such exercise, determined by multiplying the difference between the mean of the highest
and lowest market price as reported in The Wall Street Journal, or if such prices are not reported
in The Wall Street Journal, in another reliable, widely available source of such prices as
designated by the Committee for the date of the option exercise and the exercise price of the
option (without regard to any subsequent market price decrease or increase) by the number of option
shares exercised. Any such option gain realized by the employee from exercising an option shall be
paid by the employee to the Corporation within thirty days of the employment termination date. By
accepting an option grant under this Plan, the employee consents, to the extent permitted by law,
to a deduction of an amount equal to such option gain from any amounts the Corporation owes the
employee, including, but not limited to, amounts owed as wages or other compensation, fringe
benefits, or vacation pay.

     5(f). Leave of Absence. For purposes of this Plan, a qualifying leave of absence shall
not constitute a termination of employment, except that an option shall not be exercisable during a
leave of absence granted an employee for local, state, provincial, or federal government service.

     5(g). Payment of Exercise Price; Withholding Taxes. All shares purchased upon exercise
of any option shall be paid for in full at the time of purchase. Such payment shall be made (i) in
cash, (ii) through delivery of shares (provided that the shares, other than shares purchased on the
open market, must be held for at least six months) of the same class of stock as the option shares,
or (iii) a combination of cash and stock. Any shares delivered pursuant to subsection (ii) or (iii)
of the preceding sentence shall be valued at their fair market value based on the mean of the
highest and lowest sales prices as reported in The Wall Street Journal, or if such prices are not
reported in The Wall Street Journal, in another reliable, widely available source of such prices as
designated by the Committee for the date of exercise of the option. If payment of federal,

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state, and/or local withholding taxes is required in connection with the exercise of an
option, the optionee will, at the time of exercise, pay such taxes in cash or stock (including
shares obtained from the exercise and delivery of option shares up to the statutory minimum
required withholding amount). To the extent authorized by the Committee, any exercise of an option
granted under this Plan may be made in accordance with any cashless exercise program approved by
the Committee.

     5(h). Dividends. No holder of any option shall have any rights to dividends or other
rights of a stockholder with respect to shares subject to the option prior to purchase of such
shares upon exercise of the option.

     5(i). Transferability. With the exception of transfer by will or the laws of descent
and distribution, or as otherwise provided in paragraph 7, no option shall be assignable or
transferable, and an option shall be exercisable during the life of an employee only by such
employee.

     6. Restricted stock units (sometimes referred to herein as “RSUs” or “Units”) granted under
this Plan shall be subject to the following provisions:

     6(a). Subject to adjustments contemplated under paragraph 10 of this Plan, (i) a Unit granted
hereunder shall relate to one share of Common Stock (a “Corresponding Share”), as the Committee
shall determine, and (ii) the value of a Unit at any time shall be the fair market value of the
Corresponding Share, determined in accordance with procedures established by the Committee.

     6(b). Subject to the terms of this Plan, the Committee shall determine the number of Units to
be granted to an employee and the terms and conditions applicable to the grant (a “Unit Grant”) of
such Units. Subject to the terms of this Plan, the Committee may impose different terms and
conditions on any particular Unit Grant made to any particular employee.

     6(c). Subject to the satisfaction of the conditions precedent set forth under paragraph 6(d)
below and such additional conditions as may be imposed by the Committee, each Unit Grant shall vest
at the time or times determined by the Committee, provided that the Committee, in making such
determination, shall establish the vesting increments (including their number, amounts, and timing)
so as to carry out the purposes of this Plan. Within the limitations specified in the preceding
sentence, the Committee may, in its sole discretion, modify vesting provisions with respect to the
unvested portion of any Unit Grant if, in the judgment of the Committee, circumstances outside the
control of the Corporation have so changed as to make such modifications necessary or advisable in
order to preserve the reward and incentive purposes of this Plan. As a condition to the vesting of
all or any portion of a Unit Grant, the Committee may, among other things, require an employee to
enter into such agreements as the Committee considers appropriate and in the best interests of the
Corporation. In addition, the Committee may establish performance vesting criteria with respect to
all or any portion of a Unit Grant which relate to and are contingent upon the satisfaction of
specific goals established by the Committee at the time of the Unit Grant. Such goals may be based
upon or relate to one or more of the following business criteria:
asset turnover, cash flow,
contribution margin, cost objectives, cost reduction, earnings per share, economic value added,
increase in customer base, inventory turnover, market price appreciation of one or more of the
Corporation’s common stocks, market share, net income, net income margin, operating profit margin,
pre-tax income, productivity, profit margin, quality, return on assets, return on net assets,
return on capital, return on equity,

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revenue, revenue growth, and/or total shareholder return. The business criteria may be
expressed in absolute terms or relative to the performance of other companies or to an index. With
respect to any Unit Grant which is subject to performance vesting, the Committee shall establish
for each such award performance levels related to the enterprise (as defined below) at which 100%
of the award shall be earned and a range (which need not be the same for all awards) within which
greater and lesser percentages shall be earned. The term “enterprise” shall mean the Corporation
and/or any unit or portion thereof, and any entities in which the Corporation has, directly or
indirectly, a substantial ownership interest.

     6(d). (i) Except for Unit Grants that vest pursuant to paragraph 14 of this Plan, the vesting
of each Unit Grant shall be subject to the satisfaction of the conditions precedent that: (A) the
employee continue to render services as an employee (unless waived by the Committee), (B) the
employee refrain from engaging in any activity which, in the opinion of the Committee, is
competitive with any activity of the Corporation or any subsidiary (except that employment at the
request of the Corporation with an entity in which the Corporation has, directly or indirectly, a
substantial ownership interest, or other employment specifically approved by the Committee, shall
not be considered to be an activity which is competitive with any activity of the Corporation or
any subsidiary) and from otherwise acting, either prior to or after termination of employment, in
any manner inimical or in any way contrary to the best interests of the Corporation, and (C) the
employee furnish to the Corporation such information with respect to the satisfaction of the
foregoing conditions precedent as the Committee shall reasonably request. Except as otherwise
provided under (iii) below, the failure by any employee to satisfy such conditions precedent shall
result in the immediate cancellation of any unvested or unpaid portion of any Unit Grant previously
made to such employee and all Units still covered by such Unit Grant, and such employee shall not
be entitled to receive any consideration in respect of such cancellation. (ii) If any employee is
dismissed involuntarily or quits employment without the prior written consent of the Corporation,
the unvested or unpaid portion of any Unit Grant previously made to such employee, and all Units
still covered thereby shall be canceled as of the date of such termination of employment, and such
employee shall not be entitled to receive any consideration in respect of such cancellation. (iii)
Upon termination of an employee’s employment for any reason other than as described in (ii) above,
the Committee may, but shall not in any case be required to, waive the condition precedent relating
to the continued rendering of services in respect of all or any specified percentage of the
unvested portion of any Unit Grant, as the Committee in its discretion shall determine. To the
extent such condition precedent is waived, the Committee may, in its discretion, accelerate the
vesting of all or any specified percentage of the unvested portion of any Unit Grant. (iv) For
purposes of this Plan, a qualifying leave of absence, determined in accordance with procedures
established by the Committee, shall not constitute a termination of employment, except that a Unit
Grant shall not vest during a leave of absence granted an employee for civilian, local, state,
provincial, or federal government service.

     6(e). With respect to any dividend or other distribution on any Corresponding Shares, the
Committee may, in its discretion, authorize current or deferred payments (payable in cash or stock
or a combination thereof, as determined by the Committee) or appropriate adjustments to outstanding
Unit Grants to reflect such dividend or distribution.

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     6(f). (i) Upon vesting of all or any portion of a Unit Grant, the percentage of the Unit Grant
then vesting will be applied to the total number of Units then covered by such Unit Grant, and the
proportionate number of Units so computed, disregarding fractional Units, will be paid to such
Participant in the form of the respective Corresponding Shares of General Motors Common Stock, or
in cash based on the fair market value of the Corresponding Shares on the vesting date, or partly
in cash and partly in the applicable Corresponding Shares of General Motors stock as the Committee
in its sole discretion shall determine. Such stock, or the related cash payment, will be delivered,
in accordance with procedures to be established by the Committee, and upon satisfaction of the
applicable withholding requirements, as soon as practicable after such vesting date, but not later
than two and one-half months after the end of the calendar year in which vesting occurs. (ii) In
the discretion of, and in accordance with procedures to be established by the Committee,
Corresponding Shares up to the statutory minimum, or cash of equivalent value, may be designated
for, and delivered to, the Corporation in satisfaction of any federal, state and/or local
withholding taxes applicable to the payment of Units.

     6(g). Unless otherwise determined by the Committee, no holder of a Unit Grant shall have any
rights to dividends (other than as provided in paragraph 6(e) above) or other rights of a
stockholder with respect to Units and Corresponding Shares relating to such Unit Grant prior to the
delivery of such Corresponding Shares pursuant to the vesting of such Unit Grant.

     6(h). Unless otherwise determined by the Committee, with the exception of transfer by will or
the laws of descent and distribution or as otherwise provided in paragraph 7, no Unit Grant shall
be assignable or transferable and, during the lifetime of the grantee thereof, any payment in
respect of such Unit Grant shall be made only to such grantee.

     7. An employee holding an option or Unit Grant under this Plan may make a written designation
of beneficiary or beneficiaries on a form prescribed by and filed with the Secretary of the
Committee. Such beneficiary or beneficiaries or, if no such designation of any beneficiary or
beneficiaries has been made, the employee’s legal representative(s) or such other person(s)
entitled thereto as determined by a court of competent jurisdiction, (i) may exercise, in
accordance with and subject to the provisions of paragraph 5, any unterminated and unexpired option
granted to such employee and (ii) receive payment, in accordance with and subject to the provisions
of paragraph 6, pursuant to the vesting of all or any portion of a Unit Grant. A designation of
beneficiary may be replaced by a new designation or may be revoked by the employee at any time.

     8. The shares to be delivered upon exercise of an option or vesting of a Unit Grant shall be
made available, at the discretion of the Board of Directors or a Committee of the Board of
Directors as designated by the Board, either from authorized but previously unissued shares or from
shares reacquired by the Corporation, including shares purchased in the open market. If shares are
purchased in the open market for delivery upon the exercise of an option or vesting of a Unit
Grant, they shall be held in a treasury account specifically designated for such awards.

     9. If the Corporation acquires an entity which has issued and outstanding stock options or
other rights, the Corporation may substitute an appropriate number of stock options or Units under
this Plan for options or rights of such entity, including options to

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acquire stock at less than 100% of the fair market price of the stock at the time of grant, as
determined by the Committee in its sole discretion and such awards will not count against this Plan
reserve of available shares.

     10. In the event of any merger, reorganization, consolidation, recapitalization, stock
dividend, extraordinary cash dividend, or other change in Corporate structure affecting General
Motors Common Stock the Committee shall make such adjustments in the aggregate number of shares
which may be delivered under this Plan, the individual award maximums, number, and option price of
shares subject to outstanding options and the number of shares subject to Units granted under this
Plan (provided the number of shares subject to any award shall always be a whole number), as may be
determined to be appropriate by the Committee in order to prevent unintended enhancement or
diminution of the benefit intended to be provided under this Plan.

     11. To the extent determined by the Committee, any subsidiary may, without regard to the
limitations under this Plan, have a separate incentive plan or program. The Committee shall have
exclusive jurisdiction and sole discretion to approve or disapprove any such plan or program and,
from time to time, to amend, modify, or suspend any such plan or program. Individuals eligible for
grants under any such plan or program shall not be considered employees eligible for grants under
this Plan, unless otherwise determined by the Committee. No provision of any such plan or program
shall be included in or considered a part of this Plan, and any awards made under any such plan or
program shall not be charged against the aggregate number of shares of stock available for grant
under this Plan, unless otherwise determined by the Committee.

     12. The expenses of administering this Plan shall be borne by the Corporation.

     13. Full power and authority to construe and interpret this Plan shall be vested in the
Committee. To the extent determined by the Committee, administration of this Plan, including, but
not limited to (a) the selection of employees for participation in this Plan and (b) the grant
amounts and the vesting schedules for options and RSUs, may be delegated to the Chief Executive
Officer; provided, however, the Committee shall not delegate to the Chief Executive Officer any
powers, determinations, or responsibilities with respect to executive officers of the Corporation.
The instruments evidencing options and RSUs and documentation with respect to the exercise of
options and payment of RSUs, if any, shall be in such form, consistent with this Plan, as may be
determined by the Committee. Any person who accepts any award hereunder agrees to accept as final,
conclusive, and binding all determinations of the Committee and the Chief Executive Officer. The
Committee shall have the right, in the case of participants not employed in the United States, to
vary from the provisions of this Plan in order to preserve the incentive features of this Plan.

     14.(a) Upon the effective date of any Change in Control of the Corporation as defined in this
paragraph all outstanding stock options granted prior to January 1, 2007, under this Plan shall
vest, and all outstanding Unit Grants shall vest on a pro rata basis based on the number of days in
the vesting period occurring prior to the Change in Control. Such prorated Unit Grants shall be
paid as if the vesting period had ended on the date of Change In Control.

     14.(b) For options or awards granted after January 1, 2007, upon the occurrence of a Change
in Control and the termination of the employment of an employee within

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three years thereafter (i) by the Corporation other than for gross negligence or deliberate
misconduct which demonstrably harms the Corporation or (ii) by the participant for Good Reason, all
unvested options and unvested RSU grants under this Plan shall vest on a pro rata basis based on
the number of days in the vesting period occurring prior to the termination of employment.

     14.(c) A “Change in Control”, “Good Reason”, “Employer”, “Notice of Termination”, “Person”,
and “Subsidiary” shall have the same meanings as those contained in the General Motors 2002 Annual
Incentive Plan, as amended December 4, 2006.

     15. If the implementation of any of the foregoing provisions of this Plan would cause an
employee to incur adverse tax consequences under Section 409A of the Code, the implementation of
such provision shall be delayed until, or otherwise modified to occur on, the first date on which
such implementation would not cause adverse tax consequences under Section 409A.

     16. Notwithstanding anything in this Plan to the contrary, any award of cash, stock, stock
options (or otherwise) made to a Participant under this Plan on or after January 1, 2007 or any
unvested award previously granted is subject to being called for repayment to the Corporation in
any situation where the Board of Directors or a committee thereof determines that fraud,
negligence, or intentional misconduct by the Participant was a significant contributing factor to
the Corporation having to restate all or a portion of its financial statement(s). The
determination regarding employee conduct and repayment under this provision shall be within the
sole discretion of the Committee and shall be final and binding on the Participant and the
Corporation.

     17. The Committee, in its sole discretion, may, at any time, amend, modify, suspend, or
terminate this Plan provided that no such action without the approval of the stockholders shall
increase the maximum number of shares for which, or with respect to which, options or restricted
stock units may be granted to employees under this Plan (except as permitted by paragraph 10), or
permit the granting of options under this Plan with an option price of less than 100% of the fair
market value of the applicable class of stock at the time the options are granted (except as
permitted in paragraphs 9 and 10 of this Plan), or permit re-pricing of outstanding stock options
(except as otherwise permitted by paragraphs 9 and 10 of this Plan), or permit exercise of the
options unless full payment is made at the time of exercise, or, except as contemplated by the
Plan, extend the period during which options may be exercised, or render any member of the
Executive Compensation Committee or the Audit Committee, or any director who is not an employee,
eligible to be granted an option or Unit, or grant any option or Unit under this Plan after May 31,
2007.

     18. Every right of action by, or on behalf of, the Corporation or by any stockholder against
any past, present, or future member of the Board of Directors, officer, or employee of the
Corporation or its subsidiaries arising out of or in connection with this Plan shall, irrespective
of the place where action may be brought and irrespective of the place of residence of any such
director, officer, or employee, cease and be barred by the expiration of three years from the date
of the act or omission in respect of which such right of action arises. Any and all right of action
by any employee (past, present, or future) against the Corporation arising out of or in connection
with this Plan shall, irrespective of the place where an action may be brought, cease and be

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barred by the expiration of three years from the date of the act or omission in respect of
which such right of action arises. This Plan and all determinations made and actions taken pursuant
hereto shall be governed by the laws of the State of Delaware and construed accordingly.

     19. This Plan shall be effective on June 4, 2002, if approved by the stockholders of the
Corporation at the 2002 annual meeting.

10exv10w1

 

Exhibit 10.1

***Indicates material has been omitted pursuant to a Confidential Treatment Request filed
with the Securities and Exchange Commission. A complete copy of this agreement has been filed with
the Securities and Exchange Commission.

EMPLOYMENT AGREEMENT

     THIS AGREEMENT dated April 20, 2007 is entered into by Newpark Resources, Inc. (the “Company
”), a Delaware corporation, and Bruce Smith (the “Executive ”) and is intended to incorporate and
accurately reflect all prior negotiations, discussions, or agreements between the parties.

     WHEREAS, the Company desires: a) to retain the services of the Executive as Vice President of
the Company and President of Newpark Drilling Fluids (“NDF”) (collectively these titles will be
referred to as “President, NDF”); b) for the Executive to assume greater responsibilities; and , c)
for the Executive to enter into certain Non-compete Agreements. All, in order to enhance
shareholder value and grow the Company’s business to its maximum potential, and as Executive has
represented himself as qualified to achieve these objectives, and as the parties mutually desire
and agree to enter into an employment relationship by means of this Employment Agreement.

     NOW, THEREFORE in consideration of the promises and mutual covenants herein contained, and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
it is mutually covenanted and agreed by and between the parties as follows:

1. Employment of Executive

     1.1 Employment Term. The Company hereby offers to continue to employ Executive, and
Executive hereby agrees to continue to serve as its President, NDF on the terms and conditions set
forth in this Agreement. The period during which Executive is employed hereunder shall be referred
to as the “Employment Term.” The Executive’s Employment Term under this Agreement shall commence on
April 20 , 2007, and shall continue for a period of three (3) years (“Initial Term”)subject to the
provisions of Section 2 “Termination of Employment”, and shall automatically be renewed for
successive one (1) year periods thereafter unless Executive’s employment is terminated by either
party giving written notice to the other party at least sixty (60) days in advance of the
expiration of the initial or any successive Employment Term. Termination by sixty (60) days
written notice pursuant to this Section 1.1(a) shall be treated as a termination by Executive under
Section 2.2 if given by Executive or as a termination without Cause under Section 2.3 if given by
the Company. The period during which Executive is employed hereunder shall be referred to as the
“Employment Term.”

1.2 Compensation and Benefits.

     (a) Base Salary. During the Employment Term, the Company will pay Executive a base
monthly salary at an annualized rate of at least Three Hundred Thousand Dollars ($300,000) per year
(“Base Salary”). The Company will review annually Executive’s Base Salary and, at its reasonable
discretion, may increase such Base Salary as it deems appropriate, provided Executive’s Base Salary
for any subsequent twelve month year shall not be less than the preceding twelve month year except
with Executive’s prior written agreement. Adjustments in Base Salary shall be automatically
incorporated herein by reference and be contractual obligations of Company. Such Base Salary shall
be paid in accordance with the Company’s standard payroll practice for its senior staff.

     (b) Incentive Compensation. In addition to the Base Salary, during the Employment
Period Executive shall be eligible for participation in the 2003 Executive Incentive Plan (“EICP”)
and the 2003 Long Term Incentive Plan (“LTIP”), subject to any amendments made at Board’s
discretion as provided herein. Performance measures and goals will be set by the Compensation
Committee of the Board. The Target Award under the EICP is equal to forty (40%) percent of Base
Salary with a maximum limitation of

			
	 	 	 
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	 	Page 1 of 24

 

 

eighty percent (80%) of Executive’s actual Base Salary paid for that calendar year. Payout under
the EICP for a particular year will be made in cash by March 31 of the next year, e.g. payout for
2006 will occur prior to March 31, 2007. Executive will be eligible to participate in the EICP and
the LTIP from the date of his initial appointment as President of NDF. Actual awards, in
accordance with the Board approved plan and any amendments, are at the discretion of the
Compensation Committee, provided the Company represents and warrants to the Executive that the
terms of the EICP and LTIP will not be amended, modified, changed, or interpreted or applied to
make them less generous than they are on December 1, 2006, without prior written notice.

     (c) Stock Options and Share Awards. In addition, Executive shall receive such
number of stock options and performance restricted share awards as are granted by the Compensation
Committee in accordance with the Board approved plans (all such plans being referred to as the “
Plans ”). Vesting shall be as provided in these existing plans, and subject to any amendments.
When used in this Agreement “stock” and “shares” mean the Company’s publicly traded common stock,
$.01 par value. Further, throughout this Agreement, the words “stock options, awards, and grants”
are used separately or in various combinations to describe awards of shares or the right to acquire
shares of Company stock under various benefit plans or this Agreement, or both.

     (d) Benefit Plans and Vacation. Subject to the terms of such Plans, throughout his
employment under this Agreement, Executive shall be entitled to participate in any and all employee
benefits plans or programs of the Company to the extent that he is otherwise eligible to
participate under the terms of those plans, including participation in any welfare benefit programs
provided by the Company (including, without limitation, medical, prescription, dental, disability,
employee life, group life, accidental death and travel accident insurance programs), and fringe
benefits and perquisites available generally to Divisional Presidents of the Company , including
the provision of a company car or car allowance.. The Company shall not be obligated to institute,
maintain, or refrain from changing, amending, or discontinuing any benefit plan, or perquisite, so
long as such changes are similarly applicable to other Divisional Presidents of the Company..

     During the Employment Term, Executive shall be entitled to four (4) weeks paid vacation each
calendar year in accordance with the Company’s policies in effect from time to time, provided the
four (4) of weeks of vacation provided in this paragraph shall not be reduced under such policies.

     (e) Expense Reimbursement. The Company will reimburse Executive in full for all reasonable
and necessary business, entertainment and travel expenses incurred or expended by Executive in the
performance of the duties hereunder in accordance with the Company’s customary practices applicable
to its senior staff.

(f) Location. Executive will be located at the Company’s offices in Houston, Texas

     (g) Schedule of Compensation and Benefit Plans. Attached to this Agreement is a schedule of
the compensation and benefit plans by name or description that the Company and Executive
understand and intend to cover Executive. The terms and provisions of the items listed on the
Schedule, as modified by this Agreement, are incorporated herein by reference (whether or not the
actual plan documents are attached as exhibits) and are contractual by and between Company and
Executive.

     1.3 Extent of Services; Conflicts of Interest.

     (a) Executive shall devote substantially all of his working time, attention and
energies to the business of the Company, and its affiliated entities. Executive may be involved in
charitable and professional activities, trade and industry associations and the like providing
these do not interfere with the requirements of employment with the Company.

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

     (c) Executive shall execute simultaneously with this Agreement, the two Unfair
Competition, Confidentiality and Non-Competition Agreements attached as Appendix A and Appendix B.

     (d) The Company and Executive executed an Indemnification Agreement on June 7th
2006 and that agreement is incorporated by reference.

     1.4 Change of Control

     The Company policy related to Change of Control provisions is currently under review. At the
completion of that review, the Executive will receive Change of Control terms, if any, no less
favorable than other Divisional Presidents of the Company.

     1.5. Special Cash Retention Incentive

     (a) If still employed by the Company on June 29, 2007, Executive shall receive a cash payment
equivalent to the value of sixteen thousand, six hundred and sixty six (16.666) shares of the
Company as determined by the closing price on the New York Stock Exchange (“NYSE”) on June 29, 2007

     (b) If still employed by the Company on June 30, 2008, Executive shall receive a cash payment
equivalent to the value of sixteen thousand, six hundred and sixty six (16.666) shares of the
Company as determined by the closing price on the New York Stock Exchange (“NYSE”) on June 30, 2008

     (c) If still employed by the Company on June 30, 2009, Executive shall receive a cash payment
equivalent to the value of sixteen thousand, six hundred and sixty eight (16.668) shares of the
Comapny as determined by the closing price on the NYSE on June 30, 2009

     (d) In the event Executive is terminated by the Company other than for Cause or if he resigns
for Good Reason, he shall become immediately eligible for payment of amounts under (a), (b) and (c)
of this section, less any payments already received. However, in this situation the value of the
shares shall be determined by the closing price on the NYSE on the date of termination or the first
day of trading thereafter,

     1.6. Special Cash Performance Incentive

     (a) Executive will be eligible to participate in a plan to receive a cash performance
incentive based on the improved financial performance of the NDF division. The performance target
set is for a 7% annualized growth in divisional earnings (“Earnings”) for the years 2006 to 2008,
against the actual performance in 2005. Earnings will be calculated on the same basis as used in
the EICP annual and Long-

			
	 	 	 
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	 	Page 3 of 24

 

 

term Incentive Plans. A total of 50,000 Performance Units (“Units”) are available to
Executive. The value of each Unit will be equivalent to the value of one share of the Company
stock as determined by the closing price on the New York Stock Exchange (“NYSE”) on the day that
the Units become payable to Executive. You will not receive any stock or stock options under
this special incentive plan . To be eligible for any award under this program Executive must
be employed by the company at the time of eligibility, except as set out below in (e).

     (b) On June 29, 2007, if the Earnings of NDF in 2006 exceeded the 2005 Earnings by seven percent
(7%) or more, the Executive shall receive one third of the Units as a cash payment. If the seven
percent target is not achieved, then no payment will be made, although you remain eligible to earn
Performance Units in later years as noted below.

     (c) On June 30, 2008, if the annualized Earnings growth of NDF over the two calendar years
2006 and 2007 exceeded the 2005 Earnings by seven percent (7%) or more, the Executive shall receive
one third of the Units as a cash payment, plus an additional one third if no payment was made under
paragraph (b). If the annualized rate of Earnings growth does not achieve the seven percent target
then no payment will be made.

     (d) On June 30, 2009, if the annualized Earnings growth of NDF over the three calendar years
2006, 2007 and 2008 exceeded the 2005 Earnings by seven percent (7%) or more, the Executive shall
receive the balance of the 50,000 Units not already paid out as a cash payment. If the annualized
rate of Earnings growth does not achieve the seven percent target then no payment will be made and
all Units not already paid will be canceled.

     (e) In the event Executive is terminated by the Company other than for Cause or if he resigns
for Good Reason, he shall become immediately eligible for payment of the full 50,000 Units less any
Units already paid to Executive. However, in this situation the value of the Units shall be
determined by the closing price on the NYSE on the date of termination or the first day of trading
thereafter,

2. Termination of Employment.

     2.1 Termination. Executive’s employment by the Company shall be terminated (1)
automatically, upon the death or disability (as defined below), of Executive, or (2) at the
election of Executive upon 30 days written notice to the Company by Executive for Good Reason (as
defined below) or his voluntary resignation at his election and without Good Reason, (3) by the
Company for Cause (as defined below), (4) by the Company without Cause, or (5) at the end of the
Employment Term as defined in Section 1.1(a).

     2.2 Early Termination. If Executive’s employment is terminated by Executive at any time
before the end of the Employment Term for any reason other than for Good Reason, Executive shall be
entitled to receive only (i) his Base Salary and other earned compensation through the date of
termination and (ii) such stock options, share awards, and grants as shall have fully vested before
the date of termination.

     2.3 Termination by Executive for Good Reason or by Company without Cause. If Executive’s
employment is terminated by Executive for Good Reason or by the Company without Cause, then
Executive shall be entitled to receive: (i) in a lump sum payment within thirty (30) days of the
date of termination, an amount equal to the greater of (A) Executive’s current annual Base Salary
as provided herein plus Target Award incentive (40%) for the remaining period of the Initial Term
or (B) Executive’s current annual Base Salary as provided herein plus Target Award incentive (40%)
for one year; (ii) the Company will pay the COBRA premium to continue the same coverage under the
Company’s group medical insurance program period for the greater of the remaining period of the
Employment Term or twelve (12) months subject to an overall maximum of eighteen (18) months and;
(iii) direct payment by the

			
	 	 	 
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	 	Page 4 of 24

 

 

Company for the costs of outplacement services obtained by the Executive within the one (1) year
period after termination, not to exceed $20,000.

     2.4 Termination for Cause. If Executive’s employment is terminated at any time during the
Employment Term for Cause (as defined herein), then Executive shall be entitled to receive only (i)
his Base Salary through the date of termination and (ii) such stock options, restricted stock
awards, and grants as shall have fully vested before the date of termination. In any such event,
Executive shall be ineligible for and shall forfeit all rights with respect to options and grants
that have not vested as of the time of termination for Cause.

     2.5 Termination as a Result of Death. If Executive dies during the Employment Term, the
Company shall pay to Executive’s surviving spouse or such other person or estate as the Executive
may from time to time designate by written notice to the Company, or such other person as may be
required by law, the Company will pay the following amounts: (i) any unpaid Base Salary or other
compensation for services rendered to the date of death, and any unpaid expenses required to be
reimbursed under this Agreement, and any earned but unpaid bonuses for any prior period; (ii) as of
the date of termination by reason of Executive’s death, stock options previously awarded to
Executive that have vested as of the date of death in keeping with the governing Plans. No awards
or grants contemplated by this Agreement, but not yet awarded to Executive as of the time of his
death shall be granted

     2.6 Termination as a Result of Disability. The Company may terminate Executive’s employment
hereunder upon Executive becoming “Totally Disabled.” For purposes of this Agreement, Executive
shall be considered “Totally Disabled” if Executive has been physically or mentally incapacitated
so as to render Executive incapable of performing the essential functions of Executive’s position
with or without reasonable accommodation. Executive’s receipt of disability benefits for total
disability under the Company’s long-term disability plan or receipt of Social Security total
disability benefits shall be deemed conclusive evidence of Total Disability for purposes of this
Agreement. However, in the absence of Executive’s receipt of such long-term disability benefits or
Social Security benefits, the Chief Executive Officer in good faith may determine that the
Executive is disabled due to the needs of the business and the unacceptable unavailability of
Executive which is expected to last for a continuous period of not less than six (6) months. In
the event of such disability, Executive will continue to receive his Base Salary for six (6) months
or until benefits become payable to the Executive under the terms of the Company’s disability
policy, whichever first occurs.

     2.7 No Setoff. The Company’s obligation to make payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right, or action which Company may have against the Executive
or others. In no event shall the Executive be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable, or benefits to be provided to the Executive
under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not
the Executive obtains or seeks to obtain other employment.

3. Miscellaneous Matters.

     3.1 Exclusive Dispute Resolution Procedure. In the event either party contends the other has
not complied with a provision of this Agreement or asserts any claims under ERISA, other than the
Non-Compete Agreements (which are specifically excluded from this procedure), prior to seeking
arbitration as provided for below, the party claiming a violation of this Agreement, shall advise
the other party, in writing, of the specifics of the claim, including the specific provision
alleged to have been violated, as well as provide the other party with any supporting documentation
the party desires to produce at that time. If the Company is disputing amounts that Executive
contends are due to him, the Company shall provide a complete statement of the amount it is
disputing, the reason it is disputing it, and supporting documentation upon request by Executive.
The parties will thereafter meet and attempt to resolve their differences in a period not to exceed
thirty (30) days, unless the parties agree in writing to mutually extend the time for one
additional thirty (30) day period. Following such attempts to resolve any such dispute, either
party may

			
	 	 	 
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	 	Page 5 of 24

 

 

require arbitration of the other. In order to do so, the request must be timely made, in writing,
and delivered to the other party (Executive or the Chief Executive Officer) within thirty (30) days
following the end of the resolution period (or any valid extension thereof) referenced herein
above. The parties hereto agree that any controversy or claim arising out of or relating to this
Agreement, or any dispute arising out of the interpretation or application of this Agreement, which
the parties hereto are unable to resolve as provided for above, shall be finally resolved and
settled exclusively by arbitration in the city where the Company’s headquarters are then located or
such other location as the parties may agree, by a single arbitrator in accordance with the
substantive laws of the State of Texas to the extent not preempted by the Employee Retirement
Income Security Act, which shall govern all applicable benefits issues, in keeping with the above
required procedure. If the parties cannot agree upon an arbitrator, then each party shall choose
its own independent representative, and those independent representatives shall choose the single
arbitrator within thirty (30) days of the date of the selection of the first independent
representative. The legal expenses of each party shall be borne by them respectively. However,
the cost and expenses of the arbitrator in any such action shall be borne equally by the parties.
The arbitrator’s decision, judgment and award shall be final, binding and conclusive upon the
parties and may be entered in the highest court, state or federal, having jurisdiction. The
arbitrator to which any such dispute shall be submitted in accordance with the provision of this
Article shall only have jurisdiction and authority to interpret, apply or determine compliance with
the provisions of this Agreement, but shall not have jurisdiction or authority to add to, subtract
from, or alter in any way the provisions of this Agreement.

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

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

(a) If to the Company :

Newpark Resources, Inc.

2700 Research Forest Dr.

The Woodlands, Texas 77381

Attention: Chief Executive Officer

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

(b) If to Executive:

Bruce Smith

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

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

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

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

     3.7 Entire Agreement; Written Modifications. This Agreement, the Non-Compete Agreements, and
the specific documents referred to and incorporated herein by reference (whether or not copies
thereof are attached to this Agreement) together contain the entire agreement between the parties
and supersedes all prior or contemporaneous representations, promises, understandings and
agreements between Executive and the Company.

     3.8 No Assignments; Assumption by Successor. This Agreement is personal to the Company and
the Executive and may not be assigned by either party without the prior written consent of the
other. The Company will require any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of Company to
(i) expressly assume and agree to perform this Agreement in the same manner and the same extent the
Company would be required to perform it as if no such succession had taken place; and (ii) notify
the Executive of the assumption of this Agreement within ten days of such assumption. Failure of
the Company to obtain such assumption and agreement prior to the effectiveness of any such
succession shall be considered a Good Reason for the Executive to resign from the Company. As
used in this Agreement, Company shall mean Newpark Resources, Inc., and any successor to its
business and/or assets as aforesaid which assumes and agrees to perform this agreement by operation
of law or otherwise. However, this agreement shall inure to the benefit of and be enforceable by
the Executive’s personal or legal representatives, executors, administrators’ successors, heirs,
and distributes, devisees, and legatees.

     3.9 Attorney’s Fee s. The prevailing party in any action brought to enforce this Agreement
shall be entitled, in addition to such other relief that may be granted, to a reasonable sum for
attorney’s fees and costs incurred by such party in enforcing or defending against an action to
enforce this Agreement.

     3.10 Definitions. In this Agreement:

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

	 	(1)	 	Executive’s conviction by a court of competent
jurisdiction of, or entry of a plea of guilty or
nolo contendere for an act on the Executive’s part
constituting a felony; or
	 
	 	(2)	 	dishonesty; willful misconduct or gross neglect by
Executive of his obligations under this Agreement
that results in material injury to the Company;
	 
	 	(3)	 	appropriation (or an overt act attempting
appropriation) by Executive of a material business
opportunity of the Company;
	 
	 	(4)	 	theft, embezzlement or other similar
misappropriation of funds or property of the Company
by Executive; or
	 
	 	(5)	 	the failure of Executive to follow the reasonable
and lawful written instructions or policy of the
Company with respect to the services to be rendered
and the manner of rendering such services by
Executive provided Executive has been given
reasonable and specific written notice of such
failure and opportunity to cure and no cure has been
effected or initiated

			
	 	 	 
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	 	Page 7 of 24

 

 

within a reasonable time, but
not less than 90 days, after such notice.

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

	 	(1)	 	the Company adversely changes Executive’s title or changes in any
material respect the responsibilities, authority or status of
Executive without prior notice and acceptance;
	 
	 	(2)	 	the substantial or material failure of the Company to comply with its
obligations under this Agreement or any other agreement that may be
in effect that is not remedied within a reasonable time after
specific written notice thereof by Executive to the Company;
	 
	 	(3)	 	the diminution of the Executive’s salary and or a material diminution
of the Executive’s benefits without prior notice and acceptance;
	 
	 	(4)	 	the failure of the Company to obtain the assumption of this Agreement
by any successor or assignee of the Company
	 
	 	(5)	 	Requiring Executive to relocate more than 50 miles from Houston, Texas
	 
	 	(6)	 	provided that in any of the above situations, Executive has given
reasonable and specific written notice to the Chief Executive Officer
of such failure and the Company has been given a reasonable
opportunity to cure and no cure has been effected or initiated within
a reasonable time after such notice.

Executed as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ Bruce Smith  	 	 	 	Signed:
	 	/s/ Paul L. Howes 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Bruce Smith (Executive)	 	 	 	Paul L. Howes	 	 
	 	 	 	 	 	 	President & CEO	 	 
	 	 	 	 	 	 	Newpark Resources, Inc	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Witness:

	 	/s/ Milissa Weisinger 	 	 	 	Witness:
	 	/s/ Mark J. Airola 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Milissa Weisinger
	 	 	 	 	 	Name Mark J. Airola	 	 

			
	 	 	 
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APPENDIX A

ANCILLARY LOUISIANA UNFAIR COMPETITION, CONFIDENTIALITY AND

NON-COMPETITION AGREEMENT 

     THIS LOUISIANA UNFAIR COMPETITION, CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (this “
Ancillary Agreement ”) dated and effective as of December 1, 2006 is made by Bruce Smith (“
Executive ”) and Newpark Resources, Inc. (the “ Company ”).

RECITALS:

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

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

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

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

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

3. Specific Covenants.

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

          (b) Company Property. All written materials, customer or other lists or data bases,
records, data, and other documents prepared or possessed by Executive during Executive’s employment

			
	 	 	 
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	 	Page 9 of 24

 

 

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

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

          (d) Unfair Competition Restrictions. Executive agrees that for a period of twenty-
four (24) months following the date of his termination (“ Restricted Term ”), he will not,
directly or indirectly, for himself or for others, anywhere in those areas where the Company
currently (including the City of New Orleans and its surrounding parishes, and in those cities or
parishes listed in Attachment “A-1” attached hereto) (the “ Restricted Area ”) conducts or
is seeking to conduct business of the same nature as the Company, including the Related Entities,
do any of the following, unless expressly authorized by the Chief Executive Officer of the Company:
Engage in, or assist any person, entity, or business engaged in, the selling or providing of
products or services that would displace the products or services that (i) the Company is currently
in the business of providing and was in the business of providing, or is planning to be in the
business of providing, at the time of the execution of this Agreement, or (ii) that Executive had

			
	 	 	 
	Appendix A — Bruce Smith
	 	Page 10 of 24

 

 

***Indicates material has been omitted pursuant to a Confidential Treatment Request filed
with the Securities and Exchange Commission. A complete copy of this agreement has been filed with
the Securities and Exchange Commission.

involvement in, access to, or received Confidential Information about in the course of employment.
The foregoing is expressly understood to include, without limitation, the business of the
manufacturing, selling and/or providing products or services of the same type offered and/or sold
by the Company. ***

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

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

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

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

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

     9. Separability of Covenants. The covenants contained in Section 3 herein
constitute a series of separate but ancillary covenants, one for each applicable parish in the
State of Louisiana set forth in this Agreement or Attachment “A-1” hereto. If in any judicial
proceeding, a court shall hold that any of the covenants set forth in Section 3 exceed the time,
geographic, or occupational limitations permitted by applicable law, Executive and the Company
agree that such provisions shall and are hereby reformed to the maximum time, geographic, or
occupational limitations permitted by such laws, Further, in the event a court shall hold
unenforceable any of the separate covenants deemed included herein, then such unenforceable
covenant or covenants shall be deemed eliminated from the provisions of this Agreement for the
purpose of such proceeding to the extent necessary to permit the remaining separate covenants to be
enforced in such proceeding. Executive and the Company further agree that the covenants in Section
3 shall each be construed as a separate agreement independent of any other provisions of this
Agreement, and the existence of any claim or cause of action by Executive against the Company,
whether predicated on this

			
	 	 	 
	Appendix A — Bruce Smith
	 	Page 11 of 24

 

 

Agreement, his Employment Agreement or otherwise, shall not constitute a defense to the enforcement
by the Company of any of the covenants of Section 3.

     10. Consideration. Executive acknowledges and agrees that no other consideration for
Executive’s covenants in this Agreement, other than that specifically referred to in Section 1 of
the Employment Agreement, has or will be paid or furnished to him by the Company or the Related
Entities.

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

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

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

          (b) The phrase “ a business similar to the business of the Company ” means
environmental services to the exploration, production and maritime industries, mat sales and
rentals, drilling fluids, and water treatment and related technology; and, heavy oil and air
treatment.

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

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

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

			
	 	 	 
	Appendix A — Bruce Smith
	 	Page 12 of 24

 

 

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

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

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

     16. Assignment. This Agreement (including, without limitation, Executive’s
obligations under Sections 3 and 4) may not be assigned by the Company in a manner inconsistent
with 3.8 of Executive’s Employment Agreement without the consent of Executive in connection with
the sale, transfer or other assignment of all or substantially all of the capital stock or assets
of, or the merger of, the Company, provided that the party acquiring such capital stock or assets
or into which the company merges assumes in writing the obligations of the Company hereunder and
provided further that no such assignment shall release the Company from its obligations hereunder.
This Agreement (including, without limitation, Executive’s obligations under Sections 3 and 4) may
not be assigned or encumbered in any way by Executive without the written consent of the Company.

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

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

     19. Remedies.

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

          (b) In the event that Executive knowingly and intentionally fails in any material
respect to perform any of his material obligations under this Agreement, the Company may elect (i)
to cease any payments under the Employment Agreement and recover all payments made to Executive
under

			
	 	 	 
	Appendix A — Bruce Smith
	 	Page 13 of 24

 

 

the Employment Agreement on or subsequent to the date of the failure, (ii) obtain an injunction
and/or (iii) exercise any and all other remedies available by law.

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

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

	 	 	 
	If to Executive :

	 	If to the Company :
	Bruce Smith

	 	2700 Research Forest , Suite 100
	 

	 	The Woodlands, Texas 77381
	 

	 	Attn: Chief Executive Officer

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

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

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

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

	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ Bruce Smith  	 	 	 	Signed:
	 	/s/ Paul L. Howes 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Bruce Smith (Executive)	 	 	 	Paul L. Howes	 	 
	 	 	 	 	 	 	President & CEO	 	 
	 	 	 	 	 	 	Newpark Resources, Inc	 	 

			
	 	 	 
	Appendix A — Bruce Smith
	 	Page 14 of 24

 

 

ATTACHMENT A-1 (Restricted Areas)

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

	1.	 	Louisiana
	 
	2.	 	Texas
	 
	3.	 	Nevada
	 
	4.	 	Wyoming
	 
	5	 	Montana
	 
	6.	 	Colorado
	 
	7.	 	South Dakota
	 
	8.	 	Oklahoma

Other areas:

	9.	 	The Gulf of Mexico, off what is commonly the “Gulf Coast.”
	 
	10.	 	Western Canada

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

	1.	 	Acadia
	 
	2.	 	Allen
	 
	3.	 	Assumption
	 
	4.	 	Avoyelles
	 
	5.	 	Beauregard
	 
	6.	 	Bossier
	 
	7.	 	Calcasieu
	 
	8.	 	Cameron
	 
	9.	 	East Ascension
	 
	10.	 	East Baton Rouge
	 
	11.	 	Evangeline
	 
	12.	 	Grant
	 
	13.	 	Iberia
	 
	14.	 	Iberville
	 
	15.	 	Jeff Davis
	 
	16.	 	Jefferson
	 
	17.	 	Lafayette
	 
	18.	 	Lafourche
	 
	19.	 	Livingston
	 
	20.	 	Plaquemine
	 
	21.	 	Pointe Coupee
	 
	22.	 	Rapides
	 
	23.	 	Richland
	 
	24.	 	St. Charles
	 
	25.	 	St. James
	 
	26.	 	St. Landry
	 
	27.	 	St. Martin
	 
	28.	 	St. Mary
	 
	29.	 	St. Tammany
	 
	30.	 	Terrebonne
	 
	31.	 	Vermilion
	 
	32.	 	Washington

			
	 	 	 
	Appendix A — Bruce Smith
	 	Page 15 of 24

 

 

***Indicates material has been omitted pursuant to a Confidential Treatment Request filed
with the Securities and Exchange Commission. A complete copy of this agreement has been filed with
the Securities and Exchange Commission.

Attachment A-2

***

***

***

			
	 	 	 
	Appendix A — Bruce Smith
	 	Page 16 of 24

 

 

APPENDIX B

TEXAS AND NON-LOUISIANA UNFAIR COMPETITION, CONFIDENTIALITY AND

NON-COMPETITION AGREEMENT 

     THIS UNFAIR COMPETITION, CONFIDENTIALITY AND NONCOMPETITION AGREEMENT (this “ Ancillary
Agreement ”) dated and effective as of December 1, 2006 is made by Bruce Smith (“ Executive
”) and Newpark Resources, Inc. (the “ Company ”).

RECITALS:

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

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

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

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

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

3. Specific Covenants .

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

          (b) Company Property. All written materials, customer or other lists or data
bases, records, data, and other documents prepared or possessed by Executive during Executive’s
employment

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 17 of 24

 

 

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

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

          (d) Unfair Competition Restrictions. Executive agrees that for a period of
twenty-four (24) months following the date of his termination or such lesser period of time as is
the maximum amount permitted by law (“ Restricted Term ”), he will not, directly or
indirectly, for himself or for others, anywhere in those areas where the Company currently
(including the City of Houston and its surrounding counties, and in those cities or counties or
states listed in Attachment “B-1” attached hereto) (the “ Restricted Area ”) conducts or is
seeking to conduct business of the same nature as Newpark Resources and its Related Entities, do
any of the following, unless expressly authorized by the Chief Executive Officer of the Company:
Engage in, or assist any person, entity, or business engaged in, the selling or providing of
products or services that would displace the products or services that (i) the Company is currently
in the business of providing and was in the business of providing, or is planning to be

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 18 of 24

 

 

***Indicates material has been omitted pursuant to a Confidential Treatment Request filed
with the Securities and Exchange Commission. A complete copy of this agreement has been filed with
the Securities and Exchange Commission.

in the business of providing, at the time of the execution of this Agreement, or (ii) that
Executive had involvement in, access to, or received Confidential Information about in the course
of employment. The foregoing is expressly understood to include, without limitation, the business
of the manufacturing, selling and/or providing products or services of the same type offered and/or
sold by the Company. ***

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

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

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

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

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

     9. Separability of Covenants. The covenants contained in Section 3 herein
constitute a series of separate but ancillary covenants, one for each applicable county in the
State of Texas and/or each area of operation in each state, county, and area as set forth in this
Agreement or Attachment “B- 1” hereto. If in any judicial proceeding, a court shall hold that any
of the covenants set forth in Section 3 exceed the time, geographic, or occupational limitations
permitted by applicable law, Executive and the Company agree that such provisions shall and are
hereby reformed to the maximum time, geographic, or occupational limitations permitted by such
laws. Further, in the event a court shall hold unenforceable any of the separate covenants deemed
included herein, then such unenforceable covenant or covenants shall be deemed eliminated from the
provisions of this Agreement for the purpose of such proceeding to the extent necessary to permit
the remaining separate covenants to be enforced in such proceeding. Executive and the Company
further agree that the covenants in Section 3 shall each be construed as a separate agreement
independent of any other provisions of this Agreement, and the existence of any claim or cause of
action by

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 19 of 24

 

 

Executive against the Company, whether predicated on this Agreement or Employment Agreement or
otherwise, shall not constitute a defense to the enforcement by the Company of any of the covenants
of Section 3.

     10. Consideration. Executive acknowledges and agrees that no other consideration for
Executive’s covenants in this Agreement, other than that specifically referred to in Section 1 of
the Employment Agreement, has or will be paid or furnished to him by the Company or the Related
Entities.

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

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

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

          (b) The phrase “ a business similar to the business of the Company ” means
environmental services to the exploration, production and maritime industries, mat sales and
rentals, drilling fluids, and water treatment and related technology; and, heavy oil and air
treatment.

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

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

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

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 20 of 24

 

 

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

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

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

     16. Assignment. This Agreement (including, without limitation, Executive’s
obligations under Sections 3 and 4) may not be assigned by the Company in a manner inconsistent
with 3.8 of Executive’s Employment Agreement without the consent of Executive in connection with
the sale, transfer or other assignment of all or substantially all of the capital stock or assets
of, or the merger of, the Company provided that the party acquiring such capital stock or assets or
into which the company merges assumes in writing the obligations of the Company hereunder and
provided further that no such assignment shall release the Company from its obligations hereunder.
This Agreement (including, without limitation, Executive’s obligations under Sections 3 and 4) may
not be assigned or encumbered in any way by Executive without the written consent of the Company.

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

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

     19. Remedies.

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

          (b) In the event that Executive knowingly and intentionally fails in any material
respect to perform any of his material obligations under this Agreement, the Company may elect (i)
to cease any payments due under the Employment Agreement and recover all payments made to Executive

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 21 of 24

 

 

under the Employment Agreement on or subsequent to the date of the failure, (ii) obtain an
injunction and/or (iii) exercise any and all other remedies available by law.

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

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

	 	 	 
	If to Executive :

	 	If to the Company :
	Mr. Bruce Smith

	 	2700 Research Forest Drive, Suite 100
	 

	 	The Woodlands, Texas 77381
	 

	 	Attn: Chief Executive Officer

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

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

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

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

	 	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ Bruce Smith 	 	 	 	Signed:
	 	/s/ Paul Howes 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Bruce Smith (Executive)	 	 	 	Paul L. Howes	 	 
	 	 	 	 	 	 	President & CEO	 	 
	 	 	 	 	 	 	Newpark Resources, Inc	 	 

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 22 of 24

 

 

ATTACHMENT B-1 (Restricted Areas)

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

	1.	 	Louisiana
	 
	2.	 	Texas
	 
	3.	 	Oklahoma
	 
	4.	 	Colorado
	 
	5.	 	Wyoming
	 
	6.	 	Utah
	 
	7.	 	Nevada
	 
	8.	 	Montana

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

	9.	 	Western Canada
	 
	10.	 	Gulf of Mexico (off the “Gulf Coast”)

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

	1.	 	Andrews
	 
	2.	 	Aransas
	 
	3.	 	Austin
	 
	4.	 	Bee
	 
	5.	 	Bienville
	 
	6.	 	Borden
	 
	7.	 	Brazoria
	 
	8.	 	Brazos
	 
	9.	 	Brooks
	 
	10.	 	Burleson
	 
	11.	 	Calhoun
	 
	12.	 	Cameron
	 
	13.	 	Chambers
	 
	14.	 	Cochran
	 
	15.	 	Colorado
	 
	16.	 	Crane
	 
	17.	 	Crockett
	 
	18.	 	Culberson
	 
	19.	 	Dewitt
	 
	20.	 	Duval
	 
	21.	 	Ector
	 
	22.	 	Fayette
	 
	23.	 	Fort Bend
	 
	24.	 	Freestone
	 
	25.	 	Gaines
	 
	26.	 	Galveston
	 
	27.	 	Glasscock
	 
	28.	 	Goliad
	 
	29.	 	Gregg
	 
	30.	 	Hardin
	 
	31.	 	Harris
	 
	32.	 	Harrison
	 
	33.	 	Hidalgo
	 
	34.	 	Hockley
	 
	35.	 	Houston
	 
	36.	 	Howard
	 
	37.	 	Jackson
	 
	38.	 	Jefferson
	 
	39.	 	Jim Hogg
	 
	40.	 	Jim Wells
	 
	41.	 	Karnes
	 
	42.	 	Kenedy
	 
	43.	 	Kleberg
	 
	44.	 	Lavaca
	 
	45.	 	Leon
	 
	46.	 	Liberty
	 
	47.	 	Limestone
	 
	48.	 	Live Oak
	 
	49.	 	Loving
	 
	50.	 	Lubbock
	 
	51.	 	Marion
	 
	52.	 	Matagorda
	 
	53.	 	McMullen
	 
	54.	 	Motley
	 
	55.	 	Nacogdoches
	 
	56.	 	Navarro
	 
	57.	 	Newton
	 
	58.	 	Nueces
	 
	59.	 	Orange
	 
	60.	 	Panola
	 
	61.	 	Pecos
	 
	62.	 	Polk
	 
	63.	 	Reagan
	 
	64.	 	Reeves
	 
	65.	 	Robertson
	 
	66.	 	Roosevelt
	 
	67.	 	Rusk
	 
	68.	 	San Patricio
	 
	69.	 	Schleicher
	 
	70.	 	Scurry
	 
	71.	 	Shelby
	 
	72.	 	Snyder
	 
	73.	 	Starr
	 
	74.	 	Sterling
	 
	75.	 	Terrell
	 
	76.	 	Terry
	 
	77.	 	Titus
	 
	78.	 	Tom Green
	 
	79.	 	Upshur
	 
	80.	 	Upton
	 
	81.	 	Val Verde
	 
	82.	 	Victoria
	 
	83.	 	Waller
	 
	84.	 	Washington
	 
	85.	 	Webb
	 
	86.	 	Wharton
	 
	87.	 	Winkler
	 
	88.	 	Yoakum
	 
	89.	 	Zapata

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 23 of 24

 

 

***Indicates material has been omitted pursuant to a Confidential Treatment Request filed
with the Securities and Exchange Commission. A complete copy of this agreement has been filed with
the Securities and Exchange Commission.

Attachment B-2

***

***

***

			
	 	 	 
	Appendix B — Bruce Smith
	 	Page 24 of 24

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