Document:

Exhibit 10.3

 

SECURITIES ESCROW AGREEMENT 

 

THIS SECURITIES ESCROW AGREEMENT, dated
as of December 18, 2015 (this “Agreement”), by and among GP Investments Acquisition Corp., a Cayman Islands
exempted company (the “Company”), the party set forth on Exhibit A annexed hereto (the “Private Investor”)
and Continental Stock Transfer & Trust Company (the “Escrow Agent”).

 

WHEREAS, the Private Investor has agreed
to deposit its ordinary shares, par value $0.0001 per share (the “Ordinary Shares”), as set forth opposite the
Private Investor’s name on Exhibit A attached hereto (the “Escrow Securities”), in escrow as hereinafter
provided; and

 

WHEREAS, the Company and the Private Investor
desire that the Escrow Agent accept the Escrow Securities, in escrow, to be held and disbursed as hereinafter provided.

 

IT IS AGREED:

 

1. Appointment of Escrow Agent. The Company and the Private
Investor hereby appoint the Escrow Agent to act in accordance with and subject to the terms of this Agreement and the Escrow Agent
hereby accepts such appointment and agrees to act in accordance with and subject to such terms.

 

2. Deposit of Escrow Securities.

 

2.1. Escrow Securities. The Private
Investor shall deliver to the Escrow Agent certificates representing the Private Investor’s Escrow Securities, which certificates
shall remain in the name of the Private Investor, to be held and disbursed subject to the terms and conditions of this Agreement.
The Private Investor acknowledges that the certificate representing the Private Investor’s Escrow Securities bears a legend
to reflect the deposit of such Escrow Securities under this Agreement.

 

3. Disbursement of the Escrow Securities. The Escrow
Agent shall hold the Escrow Securities until the first anniversary of the consummation of a Business Combination (as such term
is defined in the amended and restated memorandum and articles of association of the Company) (the “Escrow Period”).
The Company shall promptly provide notice of the consummation of a Business Combination to the Escrow Agent. Upon the completion
of the Escrow Period, the Escrow Agent shall automatically disburse the Escrow Securities to the Private Investor upon receipt
of written request therefor from the Company; provided, however, that if the Escrow Agent is notified by the Company pursuant
to Section 6.7 hereof that the Company has been liquidated at any time prior to the Company completing its initial Business
Combination during the Escrow Period, then the Escrow Agent shall promptly destroy the certificates representing the Escrow Securities;
provided further, however, that if the Company completes a liquidation, merger, share exchange or other similar transaction
after its initial Business Combination which results in all of the shareholders of the Company having the right to exchange their
ordinary shares for cash, securities or other property, then the Escrow Agent shall, upon receipt of a certificate in form reasonably
acceptable to the Escrow Agent, executed by the Chief Executive Officer of the Company, release the Escrow Securities to the Private
Investor on the date on which the transaction is completed; and provided further, however, that if subsequent to the consummation
of a Business Combination, the last sale price of the Company's ordinary shares equals or exceeds $12.00 per share (as adjusted
for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing at least 150 days after our initial business combination, the Escrow Securities shall be released from escrow.
The Escrow Agent shall act as soon as reasonably possible following the receipt of the certificate, and shall not be held liable
for any delay in sending the Escrow Securities caused by the late receipt of the certificate. The Escrow Agent shall have no further
duties hereunder with respect to the Escrow Securities after the disbursement or destruction of the Escrow Securities in accordance
with this Section 3.

 

4. Rights of Private Investor
in Escrow Securities.

 

4.1. Rights as a Security Holder.
Subject to the terms of the Insider Letter as described in Section 4.4 hereof and except as herein provided, the Private Investor
shall retain all of its rights as a shareholder of the Company during the Escrow Period, including without limitation, the right
to vote Ordinary Shares. The Escrow Agent shall have no responsibility to determine or verify the contents or limitations of the
Insider Letter and shall be bound only by the terms of this Agreement.

 

4.2. Dividends and other Distributions
in Respect of the Escrow Securities. During the Escrow Period with respect to the Escrow Securities, all dividends payable
in cash with respect to the Escrow Securities shall be paid to the Private Investor, but all dividends payable in shares or other
non-cash property (the “Non-Cash Dividends”) shall be delivered to the Escrow Agent to hold in accordance with
the terms hereof. As used herein, the terms “Escrow Securities” shall be deemed to include the Non-Cash Dividends
distributed thereon, if any.

 

     

     

    

 

4.3. Restrictions on Transfer. During
the Escrow Period, no sale, transfer or other disposition (a “Transfer”) may be made of any or all of the Escrow
Securities by the Private Investor except (a) transfers to the Company's officers or directors, any affiliates or family members
of any of the Company's officers or directors, any members of GPIC, Ltd. (the “Sponsor”), a Bermuda limited
liability company, or their affiliates, or any affiliates of the Sponsor, (b) in the case of an individual, transfers by gift to
a member of the individual’s immediate family, to a trust, the beneficiary of which is a member of the individual’s
immediate family or an affiliate of such person, or to a charitable organization; (c) in the case of an individual, transfers by
virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual, transfers pursuant to
a qualified domestic relations order; (e) transfers by private sales or transfers made in connection with the consummation of a
business combination at prices no greater than the price at which the securities were originally purchased; (f) transfers by virtue
of the laws of Bermuda or the Sponsor’s limited liability company agreement upon dissolution of the Sponsor; (g) transfers
in the event of the Company's liquidation prior to its completion of an initial business combination; and (h) in the event of the
Company's completion of a liquidation, merger, share exchange or other similar transaction which results in all of its shareholders
having the right to exchange their ordinary shares for cash, securities or other property subsequent to our completion of its initial
business combination provided, however, that in the case of clauses (a) through (f) these permitted Transfers may be implemented
only upon the respective transferee’s written agreement to be bound by the terms and conditions of this Agreement and of
the Insider Letter signed by the Private Investor transferring such Escrow Securities and such other documents as the Company or
Citigroup Global Markets Inc. (“Citigroup”) may reasonably require. During the Escrow Period, the Private Investor
shall not pledge or grant a security interest in the Private Investor’s Escrow Securities or grant a security interest in
the Private Investor’s rights under this Agreement.

 

4.4. Insider Letter. The Private
Investor has executed a letter agreeing to be bound by the letter agreement with the Company dated May 19, 2015 (collectively,
the “Insider Letter”), such letter agreement with the Company dated May 19, 2015 has been filed as an exhibit
to the Company’s Registration Statement on Form S-1 (File No. 333-203500) (the “Registration Statement”),
with respect to the rights and obligations of the Private Investor in certain events, including but not limited to the liquidation
of the Company.

 

5. Concerning the Escrow
Agent.

 

5.1. Good Faith Reliance. The Escrow
Agent shall be protected and shall not be liable for any action taken or omitted by it in good faith and in the exercise of its
best judgment (unless grossly negligent), and may rely conclusively and may act upon any order, notice, demand, certificate, opinion
or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other document which is believed
by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall not be
bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced by a writing
delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected,
unless it shall have given its prior written consent thereto.

 

5.2. Indemnification. The Escrow
Agent shall be indemnified and held harmless by the Company from and against any expenses, including reasonable counsel fees and
disbursements, or losses suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim
which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder,
or the Escrow Securities held by it hereunder, other than expenses or losses arising from the gross negligence or willful misconduct
of the Escrow Agent. Promptly after the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any
action, suit or proceeding, the Escrow Agent shall notify the other parties hereto in writing. In the event of the receipt of such
notice, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in an appropriate court
to determine ownership or disposition of the Escrow Securities or it may deposit the Escrow Securities with the clerk of any appropriate
court or it may retain the Escrow Securities pending receipt of a final, non-appealable order of a court having jurisdiction over
all of the parties hereto directing to whom and under what circumstances the Escrow Securities are to be disbursed and delivered.
The provisions of Sections 5.2 and 5.7 shall survive in the event the Escrow Agent resigns or is discharged pursuant to Sections
5.5 or 5.6 below and in the event of termination under 6.10 below.

 

5.3. Compensation. The Escrow Agent
shall not be entitled to any additional compensation from the Company for services rendered hereunder beyond the compensation the
Escrow Agent is entitled to receive under the Escrow Agreement entered into among the Company, the Escrow Agent and the Private
Investors named therein dated as of May 19, 2015.

 

5.4. Further Assurances. From time
to time on and after the date hereof, the Company and the Private Investor shall deliver or cause to be delivered to the Escrow
Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably
request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure
itself that it is protected in acting hereunder.

 

     

     

    

 

5.5. Resignation. The Escrow Agent
may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto written
notice, and such resignation shall become effective at such time that the Escrow Agent shall turn over to a successor escrow agent
appointed by the Company the Escrow Securities held hereunder. If no successor escrow agent is so appointed within the sixty (60) day
period following the giving of such notice of resignation, the Escrow Agent may submit an application to deposit the Escrow Securities
with the United States District Court for the Southern District of New York, provided the Escrow Agent provides notice of
such deposit to the Company and the Private Investor in accordance with Section 6.7 hereof.

 

5.6. Discharge of Escrow Agent.
The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing at any time
by the other parties hereto, jointly; provided, however, that such resignation shall become effective only upon acceptance
of appointment by a successor escrow agent as provided in Section 5.5.

 

5.7. Liability. Notwithstanding
anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence or
willful misconduct.

 

5.8. Waiver. The Escrow Agent hereby
waives any and all right, title, interest or claim of any kind (each, a “Claim”) in or to any distribution of
the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of May 19, 2015, by and between the
Company and the Escrow Agent as trustee thereunder), and hereby agrees not to seek recourse, reimbursement, payment or satisfaction
for any Claim against the Trust Account for any reason whatsoever.

 

5.9. Standard of Care. The Escrow
Agent shall be obligated only to perform the duties specifically set forth in this Escrow Agreement, which shall be deemed purely
ministerial in nature, and the Escrow Agent shall under no circumstances be deemed to be a fiduciary to any party hereto or any
other person. The parties hereto agree that the Escrow Agent shall not assume any responsibility for the failure of the parties
hereto to perform in accordance with this Escrow Agreement or any other agreement or document. This Escrow Agreement sets forth
all matters pertinent to the escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall be inferred
from the terms of this Escrow Agreement or any other agreement or document. IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE, DIRECTLY
OR INDIRECTLY, FOR ANY DAMAGES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN DAMAGES WHICH RESULT FROM
THE ESCROW AGENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

6. Miscellaneous.

 

6.1. Governing Law and Consent to Jurisdiction.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts
executed in and to be performed in that State, including, without limitation, Sections 5-1401 and 5-1402 of the New York General
Obligations Law and the New York Civil Practice Laws and Rules 327(b). The parties hereto agree that any action, proceeding or
claim against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State
of New York or the United States District Court for the Southern District of New York, and the parties hereto irrevocably submit
to such jurisdiction, which jurisdiction shall be exclusive. The parties hereto hereby waive any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum.

 

6.2. Waiver of Trial by Jury. Each
party hereto hereby irrevocably and unconditionally waives the right to a trial by jury in any action, suit, counterclaim or other
proceeding (whether based on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the transactions
contemplated hereby, or the actions of the parties in the negotiation, administration, performance or enforcement hereof.

 

6.3 Third Party Beneficiaries. The
Private Investor hereby acknowledges that the underwriters pursuant to the underwriting agreement between the Company and Citigroup
dated May 19, 2015 (the “Underwriters”) are third party beneficiaries of this Agreement and this Agreement may
not be modified or changed without the prior written consent of Citigroup.

 

6.4. Entire Agreement. This Agreement
and the Insider Letter as referenced herein contain the entire agreement of the Company and the Private Investor with respect to
the subject matter hereof, and this Agreement contains the entire agreement as it pertains to the Escrow Agent and the other parties
hereto and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by all
parties to this Agreement and Citigroup. This Agreement may be executed in several original or facsimile counterparts, each one
of which shall constitute an original, and together shall constitute but one instrument.

 

     

     

    

 

6.5. Headings. The headings contained
in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation hereof.

 

6.6. Binding Effect. This Agreement
shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors and
permitted assigns. Any corporation or association into which the Escrow Agent may be converted or merged, or with which it may
be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business and assets as a whole
or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation
or transfer to which the Escrow Agent is a party, shall be and become the successor escrow agent under this Escrow Agreement and
shall have and succeed to the rights, powers, duties, obligations, immunities and privileges of the Escrow Agent, without the execution
or filing of any instrument or paper or the performance of any further act.

 

6.7. Notices. Any notice or other
communication required or which may be given hereunder shall be in writing and shall be sent by certified or registered mail, by
private national courier service (return receipt requested, postage prepaid), by personal delivery or by facsimile transmission.
Such notice or communication shall be deemed given (a) if mailed, two days after the date of mailing, (b) if sent by
national courier service, one business day after being sent, (c) if delivered personally, when so delivered, or (d) if
sent by facsimile transmission, on the second business day after such facsimile is transmitted, in each case as follows:

 

If to the Company, to:

 

GP Investments Acquisition Corp.

150 E. 52nd Street, Suite 5003

New York, NY 10022

Attn: Antonio Bonchristiano

Fax: (212) 430-4365

 

If to the Private Investor,
to his address set forth in Exhibit A.

 

If to the Escrow Agent, to:

 

Continental Stock Transfer & Trust
Company

17 Battery Place, 8th Floor

New York, NY 10004

Attn: Steven G. Nelson or Robert McMonagle

 

A copy of any notice sent
hereunder shall be sent to each of:

 

Skadden, Arps, Slate, Meagher &
Flom LLP

525 University Avenue

Suite 1400

Palo Alto, California 94301

		Attn:  	Gregg A. Noel, Esq.

Michael J. Mies, Esq.

		Fax:	(213) 621-5234

(650) 798-6510

 

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Attn: General Counsel

		Fax:	(646) 291-1469

 

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, NY 10017

Attn: Deanna L. Kirkpatrick, Esq.

Manuel Garciadiaz, Esq.

Fax: (212) 701-5135

+55-11-4871-8501

 

     

     

    

 

The parties may change the persons and
addresses to which the notices or other communications are to be sent by giving written notice to any such change in the manner
provided herein for giving notice.

 

6.8. Liquidation of the Company.
The Company shall give the Escrow Agent written notification of the liquidation and dissolution of the Company in the event that
the Company fails to consummate a Business Combination within the time period specified in the Registration Statement.

 

6.9 Disputes. If any disagreement
or dispute arises among the Company and the Private Investor concerning the meaning or validity of any provision hereunder or concerning
any other matter relating to this Escrow Agreement, the Escrow Agent shall be under no obligation to act, except (i) with
joint written instruction of the Company and the Private Investor, or (ii) under process or order of court, and shall sustain
no liability for its failure to act pending such process or court order.

 

6.10 Termination. This Agreement
shall terminate on the final distribution or destruction of all of the Escrow Securities in accordance with the terms of this Agreement.

 

     

     

    

 

IN WITNESS WHEREOF, the parties have
duly executed this Security Escrow Agreement as of the date first written above.

 

 

	 	GP INVESTMENTS ACQUISITION CORP.
	 	 	 
	 	By:	 /s/ Antonio Bonchristiano
	 	Name: 	Antonio Bonchristiano
	 	Title: 	Chief Executive Officer & Chief Financial Officer
	 	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY, 

AS ESCROW AGENT
	 	 	 
	 	By:	/s/ Robert E. McMonagle
	 	Name: 	Robert E. McMonagle
	 	Title:	Vice President
	 	 	 
	 	PRIVATE INVESTOR:
	 	 	 
	 	By:	/s/ Alexandre Hohagen 
	 	Name: 	Alexandre Hohagen

 

     

     

    

 

Exhibit A

 

	
        Name and Address of Private Investor:
	 	
        Number of

        Ordinary Shares

	
        Alexandre Hohagen

        
	 	20,000ex10-1.htm

Exhibit 10.1

 

 

FIRST AMENDMENT

 

TO

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

among

 

NEWPARK RESOURCES, INC.,

as Borrower,

 

THE SUBSIDIARY GUARANTORS,

 

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

 

and

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

BANK OF AMERICA, N.A.,

as Syndication Agent 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Documentation Agent

 

Dated as of December 18, 2015

 

 

 

 

 

 

First Amendment to Third Amended and Restated Credit Agreement 

 

This First Amendment to Third Amended and Restated Credit Agreement (this “First Amendment”) dated as of December 18, 2015, is executed by Newpark Resources, Inc., a Delaware corporation, (the “Borrower”), each of the undersigned Subsidiary Guarantors, each of the undersigned Lenders party to the Credit Agreement referred to below, and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).

 

R E C I T A L S

 

A.     The Borrower, the Administrative Agent, the Lenders and the other Agents party thereto are parties to that certain Third Amended and Restated Credit Agreement dated as of March 6, 2015 (the “Credit Agreement”), pursuant to which the Lenders have made certain credit and other financial accommodations available to and on behalf of the Borrower and its Subsidiaries.

 

B.     The Borrower has requested, and the Administrative Agent and the Majority Lenders have agreed, to amend certain provisions of the Credit Agreement.

 

C.     The Borrower has previously provided notice to the Administrative Agent that the Borrower has determined to reduce the Commitments as provided for in Section 2.4 as of the First Amendment Effective Date and wishes to confirm such notice herein.

 

D.     Now, therefore, to induce the Administrative Agent and the Majority Lenders to enter into this First Amendment and in consideration of the premises and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.     Defined Terms. Each capitalized term used herein (including, without limitation, in the recitals hereof) but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this First Amendment. Unless otherwise indicated, all section references in this First Amendment refer to sections of the Credit Agreement.

 

2.     Notice of Reduction of Commitments. The Borrower has previously provided and hereby confirms its prior notice to the Administrative Agent that, in accordance with Section 2.4, the Borrower has elected to reduce the Total Commitments to $150,000,000.00 as of the First Amendment Effective Date, and the Administrative Agent and the Lenders hereby confirm receipt of such notice.

 

3.     Amendments to Credit Agreement.

 

(a)     Amendment to Section 1.1. Section 1.1 is hereby amended by amending and restating the following definitions in their entirety: 

 

“Agreement”: this Third Amended and Restated Credit Agreement, as amended by that First Amendment dated as of December 18, 2015, and as the same may from time to time be further amended, modified, supplemented or restated.

 

 

 

 

 

 

“Applicable Pricing Grid”: the table set forth below:

 

	
Level
	
Consolidated Leverage Ratio
	
Libor Margin
	
ABR Margin
	
Commitment Fee Rate

	
I
	
Less than 1.00x
	
1.75%
	
0.75%
	
0.375%

	
II
	
Greater than or equal to 1.00x but less than 1.50x
	
2.00%
	
1.00%
	
0.375%

	
III
	
Greater than or equal to 1.50x but less than 2.00x
	
2.25%
	
1.25%
	
0.375%

	
IV
	
Greater than or equal to 2.00x but less than 2.50x
	
2.50%
	
1.50%
	
0.375%

	
V
	
Greater than or equal to 2.50x but less than 3.25x
	
3.00%
	
2.00%
	
0.50%

	
VI
	
Greater than or equal to 3.25x
	
3.25%
	
2.25%
	
0.50%

 

 

For purposes of the Applicable Pricing Grid, changes in the Applicable Margin and/or the Commitment Fee Rate resulting from changes in the Consolidated Leverage Ratio shall become effective on the date (the “Adjustment Date”) that is three Business Days after the date on which financial statements are delivered to the Lenders pursuant to Section 6.1 and shall remain in effect until the next change to be effected pursuant to this paragraph. If any financial statements referred to above are not delivered within the time periods specified in Section 6.1, then, until the date that is three Business Days after the date on which such financial statements are delivered, the highest rate set forth in each column of the Applicable Pricing Grid shall apply. In addition, at all times while an Event of Default shall have occurred and be continuing, the highest rate set forth in each column of the Applicable Pricing Grid shall apply. Each determination of the Consolidated Leverage Ratio for purposes of the Applicable Pricing Grid shall be made in a manner consistent with the determination thereof pursuant to Section 7.1. 

 

“Commitment”: as to any Lender, the obligation of such Lender to make Revolving Loans, participate in Letters of Credit and to acquire participations in Swingline Loans in an aggregate principal and/or face amount not to exceed the amount set forth under the heading “Commitment” opposite such Lender’s name on Schedule 1.1(a), or in the Assignment and Assumption or Augmenting Lender Supplement pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms hereof. The amount of the Total Commitments as of the First Amendment Effective Date is $150,000,000.00.

 

 

-2-

 

 

“Commitment Fee Rate”: the rate per annum determined pursuant to the Applicable Pricing Grid. 

 

“Consolidated EBITDA”: for any period, Consolidated Net Income for such period plus, without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) tax expense (excluding sales taxes and ad valorem taxes on real property), (b) interest expense, amortization or writeoff of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness (including the Loans), (c) depreciation and amortization expense, (d) amortization of intangibles (including, but not limited to, goodwill) and organization costs, (e) any extraordinary or non-recurring non-cash expenses or losses (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, non-cash losses on sales of assets outside of the ordinary course of business), (f) any non-cash Capital Stock based compensation expenses, and (g) (i) severance payments, early retirement or voluntary retirement payments and other payments made with respect to the separation of any officers, employees or directors of the Borrower or its Subsidiaries from the Borrower or any such Subsidiary, together with costs and expenses related thereto for benefits, including, without limitation, health insurance (collectively, the “Severance Add-Back”) and (ii) non-cash costs and expenses related to the Brazil Debt Activity (collectively, the “Brazil Debt Activity Add-Back”), provided, however, that (y) Borrower shall not be required to add-back either the Severance Add-Back or any part thereof or the Brazil Debt Activity Add-Back or any part thereof to calculate Consolidated EBITDA for any period, but instead, shall have the right to elect, in the exercise of its sole discretion from time to time, the amount, if any, of the Severance Add-Back and/or the Brazil Debt Activity Add-Back that it will add-back to calculate Consolidated EBITDA for any period and (z) the aggregate amount of add-backs made pursuant to this clause (g) shall not exceed $10,000,000 during the term of this Agreement; minus, (a) to the extent included in the statement of such Consolidated Net Income for such period, the sum of (i) interest income, (ii) any extraordinary, unusual or non-recurring income or gains (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary course of business), (iii) income tax credits (to the extent not netted from income tax expense) and (iv) any other non-cash income and (b) any cash payments made during such period in respect of items described in clause (e) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income, all as determined on a consolidated basis.

 

 

-3-

 

 

“Consolidated Total Debt”: at any date, the aggregate principal amount of all Indebtedness of the Borrower and its Subsidiaries at such date determined on a consolidated basis in accordance with GAAP; it being expressly agreed and acknowledged, for the avoidance of doubt, that for purposes of calculating the Consolidated Leverage Ratio and the Senior Secured Leverage Ratio, obligations in respect of letters of credit (including L/C Obligations), to the extent such letters of credit do not constitute financial letters of credit, shall not be included in the calculation of Consolidated Total Debt.

 

“L/C Commitment”: $65,000,000.

 

(b)     Amendment to Section 1.1.     Section 1.1 is hereby further amended by adding the definitions set forth below in the appropriate alphabetical order: 

 

“Brazil Debt Activity”: that $14,416,013 intercompany balance as of September 30, 2015, with foreign exchange re-measurements recorded to the income statement which has been written off as of September 30, 2015.

 

“Brazil Debt Activity Add-Back”: as defined in the definition of Consolidated EBITDA.

 

“First Amendment”: that certain First Amendment to Third Amended and Restated Credit Agreement dated as of December 18, 2015 executed by the Borrower, the Subsidiary Guarantors, the Administrative Agent and the Lenders signatory thereto.

 

“First Amendment Effective Date”: that certain date on which the conditions of Section 3 of the First Amendment have been satisfied (or waived in accordance with Section 10.1).

 

“Severance Add-Back”: as defined in the definition of “Consolidated EBITDA”.

 

(c)     Amendment to Section 2.1(c). Section 2.1(c) is hereby amended by deleting reference to “$325,000,000” therein and replacing such reference with “$275,000,000”. 

 

(d)     Amendment to Section 5.2. Section 5.2 is hereby amended by adding the following clause (c) where alphabetically appropriate:

 

(c) Pro Forma Compliance with the Financial Covenants. From the First Amendment Effective Date until the Springing Maturity Date, (i) after giving effect to any such extension of credit, on a pro forma basis, the Borrower is in compliance with Section 7.1 as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 6.1, and (ii) the Administrative Agent shall have received an Interim Compliance Certificate executed by a Responsible Officer in substantially the form of Exhibit B-2 containing all information and calculations necessary for determining compliance with the provisions of Section 5.2(c)(i).

 

 

-4-

 

 

(e)     Amendment to Section 5.3(a). Section 5.3(a) is hereby amended and restated in its entirety to read as follows:

 

(a)     The Borrower’s Consolidated Leverage Ratio shall not exceed 2.5 to 1.0 as of the last day of any period of four consecutive fiscal quarters of the Borrower ending on the last day of the immediately preceding fiscal quarter for which financial statements are publicly available.

 

(f)     Amendment to Section 7.1(a). Section 7.1(a) is hereby amended and restated in its entirety to read as follows:

 

(a)     Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as at the last day of any period of four consecutive fiscal quarters of the Borrower ending with any fiscal quarter set forth below to exceed the ratio set forth below opposite such fiscal quarter: 

 

	
Fiscal Quarter Ended
	 	
Consolidated
Leverage Ratio

	
December 31, 2015
	 	
5.50 to 1.00

	 	 	 
	
March 31, 2016
	 	
5.50 to 1.00

	 	 	 
	
June 30, 2016
	 	
5.50 to 1.00

	 	 	 
	
September 30, 2016
	 	
5.50 to 1.00

	 	 	 
	
December 31, 2016
	 	
5.50 to 1.00

	 	 	 
	
March 31, 2017
	 	
4.50 to 1.00

	 	 	 
	
June 30, 2017 and the last day of each fiscal quarter thereafter
	 	
4.00 to 1.00

 

 

-5-

 

 

(g)     Amendment to Section 7.1(b). Section 7.1(b) is hereby amended and restated in its entirety to read as follows: 

 

(b)     Senior Secured Leverage Ratio. Permit the Senior Secured Leverage Ratio as at the last day of any period of four consecutive fiscal quarters of the Borrower ending with any fiscal quarter set forth below to exceed the ratio set forth below opposite such fiscal quarter: 

 

	
Fiscal Quarter Ended
	 	
Senior Secured
Leverage Ratio

	
December 31, 2015
	 	
2.00 to 1.00

	 	 	 
	
March 31, 2016
	 	
2.00 to 1.00

	 	 	 
	
June 30, 2016
	 	
2.00 to 1.00

	 	 	 
	
September 30, 2016
	 	
2.00 to 1.00

	 	 	 
	
December 31, 2016
	 	
2.00 to 1.00

	 	 	 
	
March 31, 2017
	 	
2.50 to 1.00

	 	 	 
	
June 30, 2017 and the last day of each fiscal quarter thereafter
	 	
3.00 to 1.00

 

 

(h)     Amendment to Schedule 1.1(a). Schedule 1.1(a) to the Credit Agreement is hereby amended and restated in its entirety and replaced with Schedule 1.1(a) attached hereto.

 

(i)     Amendment to Schedule 1.1(b). Schedule 1.1(b) to the Credit Agreement is hereby amended and restated in its entirety and replaced with Schedule 1.1(b) attached hereto.

 

(j)     Amendment to Exhibit B-2. Exhibit B-2 to the Credit Agreement is hereby amended and restated in its entirety and replaced with the form attached hereto as Exhibit B-2.

 

4.     Conditions Precedent. This First Amendment shall become effective on the date when each of the following conditions is satisfied (or waived in accordance with Section 10.1):

 

(a)     The Administrative Agent shall have received from Lenders constituting the Majority Lenders, the Borrower and each of the Subsidiary Guarantors counterparts (in such number as may be requested by the Administrative Agent) of this First Amendment signed on behalf of such Person.

 

(b)     The Administrative Agent shall have received satisfactory revised projections (including a projected balance sheet, income statement and cash flow statement together with detailed management assumptions) through 2017.

 

(c)     At the time of and immediately after giving effect to this First Amendment, (i) no Default or Event of Default shall have occurred and be continuing and (ii) no event or events shall have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.

 

 

-6-

 

 

(d)     The Administrative Agent and the Lenders shall have received on or before the First Amendment Effective Date, (i) all fees required to be paid on the First Amendment Effective Date pursuant to that certain Amendment Fee Letter dated December 18, 2015 by and between the Borrower and the Administrative Agent and (ii) all other amounts due and payable and reimbursement or payment of all reasonable out-of-pocket costs and expenses required to be reimbursed or paid by the Borrower under the Credit Agreement, including the reasonable fees and disbursements of counsel to the Administrative Agent for which invoices have been presented at least three (3) Business Days prior to the First Amendment Effective Date.

 

The Administrative Agent is hereby authorized and directed to declare this First Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 4 or the waiver of such conditions as permitted in Section 10.1. Such declaration shall be final, conclusive and binding upon (i) all parties to the Credit Agreement as well as (ii) all parties to this First Amendment for all purposes. 

 

5.     Miscellaneous.

 

(a)     Confirmation. The provisions of the Credit Agreement as amended by this First Amendment shall remain in full force and effect following the effectiveness of this First Amendment.

 

(b)     Ratification and Affirmation; Representations and Warranties. The Borrower and each Subsidiary Guarantor hereby (a) acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby and (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment:

 

(i)     all of the representations and warranties made by it in each Loan Document to which it is a party are true and correct in all material respects (except those which have a materiality qualifier, which shall be true and correct as so qualified), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct as of such specified earlier date,

 

(ii)     no Default or Event of Default has occurred and is continuing, and

 

(iii)     no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.

 

(c)     Loan Document. This First Amendment is a Loan Document.

 

(d)     Reference to and Effect Upon Credit Agreement and other Loan Documents. The execution, delivery and effect of this First Amendment shall be limited precisely as written and shall not be deemed to (i) be a consent to any waiver of any term or condition, or to any amendment or modification of any term or condition of the Credit Agreement or any other Loan Document, except as specifically set forth in this First Amendment, or (ii) prejudice any right, power or remedy which the Administrative Agent or any Lender now has or may have in the future under or in connection with the Credit Agreement or any other Loan Document. Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as amended hereby.

 

 

-7-

 

 

(e)     Counterparts. This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this First Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

 

(f)     NO ORAL AGREEMENT. THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS AMONG THE PARTIES.

 

(g)     GOVERNING LAW. THIS FIRST AMENDMENT     AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(h)     Payment of Expenses. In accordance with Section 10.5, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of- pocket costs and reasonable costs and expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.

 

(i)     Severability. Any provision of this First Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

(j)     Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Borrower, the Subsidiary Guarantors, the Lenders and the Administrative Agent and each of their respective successors and assigns.

 

[Signature pages follow.]

 

 

-8-

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed as of the date first written above.

 

	
BORROWER:        
	
NEWPARK RESOURCES, INC.

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
By:     /s/ Gregg Piontek                        

	
 
	
  Gregg Piontek

  Chief Financial Officer and Vice President

	
 
	
 

	
 
	
 

	
SUBSIDIARY GUARANTORS:  
	
EXCALIBAR MINERALS LLC

NEWPARK DRILLING FLUIDS LLC

NEWPARK MATS & INTEGRATED SERVICES      LLC

NEWPARK DRILLING FLUIDS INTERNATIONAL LLC

	
 
	
 

	
 
	
 

	
 
	
By:     /s/ Gregg Piontek                        

      Gregg Piontek

      Vice President

 

       

Signature Page to First Amendment

 

 

 

 

	
 
	
JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and a Lender

 

 

 

By:     /s/ Greg George                           

Name: Greg George

Title: Authorized Officer

 

 

Signature Page to First Amendment

 

 

 

 

	
 
	
BANK OF AMERICA, N.A., 

as a Lender

 

 

 

By:     /s/ Pace Doherty                          

Name: Pace Doherty

Title: Assistant Vice President

 

 

Signature Page to First Amendment

 

 

 

 

	
 
	
Wells Fargo Bank, N.A., 

as a Lender

 

 

 

By:     /s/ Chris Kim                                

Name: Chris Kim

Title: Vice President

 

 

Signature Page to First Amendment

 

 

 

 

	
 
	
Comerica Bank,

as a Lender

 

 

 

By:     /s/ Bradley Kuhn                        

Name: Bradley Kuhn

Title: Assistant Vice President

 

 

Signature Page to First Amendment

 

 

 

 

	
 
	
BOKF, NA dba Bank of Texas, 

as a Lender

 

 

 

By:     /s/ Jeff Dunn                                

Name: Jeff Dunn

Title: Executive Vice President

 

 

Signature Page to First Amendment

 

 

 

 

	
 
	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, 

as a Lender

 

 

 

By:     /s/ Nupur Kumar                         

Name: Nupur Kumar

Title: Authorized Signatory

 

By:     /s/ Warren Van Heyst                

Name: Warren Van Heyst

Title: Authorized Signatory

 

 

Signature Page to First Amendment

 

 

 

 

Schedule 1.1(a)

COMMITMENTS

 

	
Lender
	
Commitment
	
Swingline Commitment

	
JPMorgan Chase Bank, N.A.
	
$37,500,000.00
	
$11,250,000.00

	
Bank of America, N.A.
	
$37,500,000.00
	
$0

	
Wells Fargo Bank, National Association
	
$22,500,000.00
	
$0

	
Comerica Bank
	
$18,750,000.00
	
$0

	
BOKF, NA dba Bank of Texas
	
$18,750,000.00
	
$0

	
Credit Suisse AG, Cayman Islands Branch
	
$15,000,000.00
	
$0

	
Total
	
$150,000,000.00
	
$11,250,000.00

 

 

 

 

Schedule 1.1(b)

SPECIFIED L/C COMMITMENTS

 

	
Lender
	
L/C Commitment

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

	
Bank of America, N.A.
	
$15,000,000.00

 

 

 

 

EXHIBIT B-2

 

FORM OF
INTERIM COMPLIANCE CERTIFICATE

 

This Interim Compliance Certificate is delivered pursuant to Section [5.2(c)][5.3(c)] [6.2(b)] of the Third Amended and Restated Credit Agreement, dated as of March 6, 2015 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Newpark Resources, Inc. (the “Borrower”), the Lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”) and the other agents party thereto. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

1.     I am the duly elected, qualified and acting [Chief Executive Officer/ President/ Chief Financial Officer] of the Borrower.

 

I have reviewed and am familiar with the contents of this Certificate.

 

Attached hereto as Attachment 1 are the computations showing compliance with [the conditions set forth in [Section 5.2(c)][Section 5.3(a) and (b)]] [the covenants set forth in Section 7.6] of the Credit Agreement.

 

IN WITNESS WHEREOF, I have executed this Certificate this _____ day of ____, 201_. 

 

 

 

	
 
	
By: ________________________________
Name:
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}]]