Document:

exv10w30

 

EXHIBIT 10.30

NEWPARK RESOURCES, INC.

NON-EMPLOYEE DIRECTOR STOCK OPTION AGREEMENT

(Annual Grant)

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

     A. The Company has duly adopted the 2004 Non-Employee Directors’ Stock Option Plan
(hereinafter referred to as the “Plan”), under which each Non-Employee Director (whether in office
on March 10, 2004, or subsequently elected) shall be granted a Stock Option to purchase 10,000
shares of Common Stock, at Fair Market Value on the Date of Grant, automatically on the date of
each annual meeting of stockholders (or stockholder action in lieu thereof) at which such
Non-Employee Director is re-elected.

     B. All capitalized terms used in this Agreement that are not otherwise defined herein shall
have the meanings attributed to them in the Plan.

     C. Optionee was re-elected as a Non-Employee Director of the Company at the Annual Meeting of
Stockholders of the Company held on June 9, 2004, and the stock option represented by this
Agreement was automatically granted to Optionee on that date (the “Date of Grant”).

     NOW, THEREFORE, the parties agree as follows:

     1. Grant of Option

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

     2. Purchase Price

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

     3. Option Period

          The Option shall commence on the Date of Grant and shall expire, and all rights to purchase
Option Shares shall terminate, at the close of business on the day immediately preceding the tenth
anniversary of the Date of Grant, unless terminated earlier as provided in this

 

 

Agreement. Subject
to the foregoing and to paragraph 9.3, the Option shall be exercisable during its term as to:
one-third of the Option Shares during the twelve months beginning on the first anniversary of the Date of Grant; one-third of the Option
Shares during the twelve months beginning on the second anniversary of the Date of Grant; and
one-third of the Option Shares during the twelve months beginning on the third anniversary of the
Date of Grant; provided, however, if Optionee shall not in any period purchase all of the Option
Shares which Optionee is entitled to purchase in such period, Optionee may purchase all or any part
of such Option Shares at any time after the end of such period and prior to the expiration of the
Option.

     4. Exercise of Option

          The Option shall be exercised (in whole or in part) by delivering this Agreement for
endorsement to the Company, at its principal office, attention of the Corporate Secretary, together
with a Notice and Agreement of Exercise (in the form attached hereto or specified from time to time
by the Committee) indicating the number of Option Shares Optionee wishes to purchase and full
payment of the Exercise Price of such Option Shares. Payment shall be made in cash, by cashier’s
or certified check or by surrender of previously owned shares of the Common Stock valued at Fair
Market Value on the date of exercise (if the Committee authorizes payment in stock). The minimum
number of shares as to which the Option may be exercised at any time is ten. In no event shall the
Company be required to issue or transfer fractional shares.

     5. Directorship of Optionee

          5.1 Except as provided in this paragraph 5, Optionee may not exercise the Option unless
Optionee serves as a director of the Company continuously from the Date of Grant to the date of
exercise.

          5.2 Unless otherwise determined by the Committee, in its sole discretion, upon termination of
the directorship of Optionee by reason of death, the Option to the extent exercisable on the date
of death of Optionee shall remain in full force and effect and may be exercised pursuant to the
provisions hereof at any time prior to expiration at the end of the fixed term hereof. Unless
otherwise determined by the Committee, in its sole discretion, upon termination of the directorship
of Optionee by reason of Disability, the Option to the extent exercisable on the date of
termination of directorship may be exercised pursuant to the provisions hereof at any time until
the earlier of (a) the end of the fixed term of the Option and (b) the later of the expiration of
(i) twelve months following termination of Optionee’s directorship and (ii) a number of months (but
not more than eighteen months) following termination of Optionee’s directorship equal to one month
for each full year of Optionee’s continuous service as a Non-Employee Director. Unless otherwise
determined by the Committee, in its sole discretion, the Option to the extent not outstanding and
presently exercisable by Optionee at the date of death or termination of directorship by reason of
Disability, shall terminate as of the date of death or such termination of directorship and shall
not be exercisable thereafter.

          5.3 Unless otherwise determined by the Committee, in its sole discretion, upon the termination
of the directorship of Optionee for any reason other than the reasons set

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forth in paragraph 5.2,
the Option to the extent exercisable on the date of termination of directorship may be exercised
pursuant to the provisions hereof at any time until the earlier of (a) the end of the fixed term of
the Option and (b) the later of the expiration of (i) three months following termination of
Optionee’s directorship and (ii) a number of months (but not more than eighteen months ) following
termination of Optionee’s directorship equal to one month for each full year of service as a
Non-Employee Director. Unless otherwise determined by the Committee, in its sole discretion, the
Option to the extent not then outstanding and presently exercisable by Optionee at the date of
termination of directorship shall terminate as of the date of such termination of directorship and
shall not be exercisable thereafter.

     6. Securities Laws Requirements

          6.1 The Option shall not be exercisable unless and until any applicable registration or
qualification requirements of federal and state securities laws and all other requirements of law
or any regulatory bodies having jurisdiction over such exercise or issuance and delivery have been
fully complied with. The Company will use reasonable efforts to maintain the effectiveness of a
Registration Statement under the Securities Act of 1933 (the “Securities Act”) for the issuance of
the Option Shares, but there may be times when no such Registration Statement will be currently
effective. Exercise of the Option may be temporarily suspended without liability to the Company
during times when no such Registration Statement is currently effective, or during times when, in
the reasonable opinion of the Committee, such suspension is necessary to preclude violation of any
requirements of applicable law or regulatory bodies having jurisdiction over the Company. If the
Option would expire for any reason except the end of its term during such a suspension, then, if
exercise of the Option is duly tendered before its expiration, the Option shall be exercisable and exercised (unless the attempted
exercise is withdrawn) as of the first day after the end of such suspension. The Company shall
have no obligation to file any Registration Statement covering resales of the Option Shares.

          6.2 Upon each exercise of the Option, Optionee shall represent, warrant and agree, by the
Notice and Agreement of Exercise delivered to the Company, that (a) no Option Shares will be sold
or otherwise distributed in violation of the Securities Act or any other applicable federal or
state securities laws, (b) Optionee will furnish to the Company a copy of each Form 4 filed by
Optionee pursuant to the reporting requirements under Section 16(a) of the Securities Exchange Act
of 1934 (the “Exchange Act”) and will timely file all reports required under federal securities
laws, and (c) Optionee will report all sales of Option Shares to the Company in writing on the form
prescribed from time to time by the Company. All certificates for Option Shares may be imprinted
with legend conditions reflecting federal and state securities law restrictions and conditions and
the Company may comply therewith and issue “stop transfer” instructions to its transfer agents and
registrars without liability.

     7. Withholding Taxes

          The Committee shall have the right at the time of exercise of the Option to make adequate
provision in any manner permitted by the Plan for any federal, state, local or foreign

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taxes which
it believes are or may be required by law to be withheld with respect to such exercise, to ensure
the payment of any such taxes.

     8. Non-transferability of Option

          The Option (i) shall be transferable by Optionee to (a) Optionee’s Immediate Family Members,
(b) a trust or trusts for the exclusive benefit of Optionee’s Immediate Family Members, (c) a
corporation, partnership, limited partnership or limited liability company in which no persons or
entities other than Optionee and Optionee’s Immediate Family Members have beneficial interests, or
(d) such other persons or entities as the Committee may specifically approve, on a case-by-case
basis, and (ii) shall be exercisable by any such transferees. Unless the Committee shall determine
otherwise in its sole discretion, any Option so transferred may not be further transferred by the
transferees thereof except by will or the laws of descent and distribution or pursuant to a
“qualified domestic relations order”, as defined in the Internal Revenue Code of 1986, as amended.
Notwithstanding any transfer permitted in accordance with the foregoing provisions, a transferred
Option shall continue to be subject to the same terms and conditions as were applicable immediately
before such transfer (other than permitting the Option to be exercised by a permitted transferee),
including but not limited to the provisions of the Plan and this Agreement governing (x) the
exercise of the Option, (y) the termination of the Option at the expiration of its term or
following termination of the directorship of Optionee and (z) the payment of withholding taxes.
Except as specifically provided above, the Option shall be transferable only by will or the laws of
descent and distribution or pursuant to a qualified domestic relations order, and shall be
exercisable during Optionee’s lifetime only by Optionee or by Optionee’s legal representative.
Without limiting the generality of the foregoing, the Option may not be assigned, transferred
(except as provided above), pledged or hypothecated in any way, shall not be assignable by
operation of law and shall not be subject to execution, attachment or similar process. Any
attempted assignment, transfer, pledge, hypothecation or other disposition contrary to the
provisions of this Agreement, and the levy of any execution, attachment or similar process
thereupon, shall be null and void and without effect.

     9. Changes in Capitalization

          9.1 The number and class of shares subject to the Option, the Exercise Price (but not the
total price) and the minimum number of shares as to which the Option may be exercised at any one
time shall be proportionately adjusted in the event of any Capital Adjustment, so that upon
exercise of the Option, Optionee shall receive the number and class of shares Optionee would have
received had Optionee been the holder of the number of shares of Common Stock for which the Option
is being exercised upon the date of such Capital Adjustment.

          9.2 Upon a reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the Company is not the surviving corporation or in which the
Company survives as a subsidiary of another corporation, a sale of all or substantially all of the
property of the Company to another corporation or any dividend or distribution to stockholders of
more than ten percent of the Company’s assets, adequate adjustment or other

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provisions shall be
made by the Company or other party to such transaction so that there shall remain and/or be
substituted for the Option Shares provided for herein, the shares, securities or assets which would have been issuable or payable in respect of or in exchange for the Option Shares then
remaining under the Option, as if Optionee had been the owner of such shares as of the applicable
date. Any securities so substituted shall be subject to similar successive adjustments.

          9.3 If a change of control (“Change in Control”) of the Company occurs while the Option is
outstanding, the Option shall immediately become and shall thereafter be exercisable in full until
the expiration at the end of the term or until earlier terminated in accordance with paragraphs 5
or 10. A Change in Control of the Company shall be deemed to have occurred (a) on the date the
Company first has actual knowledge that any person (as such term is used in Sections 13(d) and
14(d)(2) of the Exchange Act or any amendment or replacement of such sections) has become the
beneficial owner (as defined in Rule 13(d)-3 under the Exchange Act or any amendment or replacement
of such Rule), directly or indirectly, of securities of the Company representing forty percent
(40%) or more of the combined voting power of the Company’s then outstanding securities or (b) on
the date the stockholders of the Company approve (i) a merger of the Company with or into any other
corporation in which the Company is not the surviving corporation or in which the Company survives
as a subsidiary of another corporation, (ii) a consolidation of the Company with any other
corporation, or (iii) the sale or disposition of all or substantially all of the Company’s assets
or a plan of complete liquidation.

     10. Misconduct of Optionee

          Notwithstanding any other provision of this Agreement, all unexercised Options held by
Optionee hereunder shall automatically terminate as of the date Optionee’s directorship is
terminated, if such directorship is terminated on account of any act of fraud, embezzlement,
misappropriation or conversion of assets or opportunities of the Company, or if Optionee takes any
other action materially inimical to the best interests of the Company, as determined by the
Committee in its sole and absolute discretion. Upon such termination of the Option, Optionee shall
forfeit all rights and benefits under this Agreement.

     11. Privileges of Ownership

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

     12. Reference to Plan

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

     13. Notices

          Any notice to be given under the terms of this Agreement shall be addressed to the Company in
care of its Corporate Secretary at 3850 North Causeway Boulevard, Suite 1770, Metairie, Louisiana,
70002, and any notice to be given to Optionee shall be addressed to Optionee at Optionee’s address
appearing on the records of the Company, or at such other address or addresses as either party may
hereafter designate in writing to the other. Any such notice shall be deemed duly given when
enclosed in a properly sealed envelope, addressed as herein required and deposited, postage
prepaid, in a post office or branch post office regularly maintained by the United States
Government.

     14. Governing Law.

          This Agreement shall be construed in accordance with, and governed by, the laws of the State
of Delaware.

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

	 	 	 	 	 
	 	 	“OPTIONEE”
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	“COMPANY”
	 
	 	 	 	 
	 	 	NEWPARK RESOURCES, INC.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	James D. Cole, Chairman of the
	

	 	 	 	Board & Chief Executive Officer

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NEWPARK RESOURCES, INC.

NOTICE AND AGREEMENT OF EXERCISE

OF NON-EMPLOYEE DIRECTOR STOCK OPTION

Date:                                         

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

     Enclosed are the documents and payment specified in paragraph 4 of my Option Agreement. I
understand that no Option Shares will be issued and delivered to me unless and until any applicable
registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and any
applicable requirements of law or any regulatory bodies having jurisdiction over such issuance and
delivery have been fully complied with. I hereby represent, warrant and agree, to and with Newpark
Resources, Inc. (the “Company”), that:

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

     b. I will not sell or dispose of my Option Shares in violation of the Securities Act or any
other applicable federal or state securities laws.

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

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

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

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

	 	 	 	 	 
	(Print your name)

	 	 	 	(Signature)
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	

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

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

8exv10w31

 

	 	 	 	 	 
	

	 	 	 	EXHIBIT 10.31
	 
	 	 	 	 
	

	 	RE:
	 	2005 Award Letter Pursuant to
	

	 	 	 	2003 Long Term Incentive Plan

Dear                     :

     This letter (the “Award Letter”) confirms that, for the three-year period ending December 31,
2007 (the “Performance Period”), the Compensation Committee of Newpark Resources, Inc. (“Newpark”
or the “Company”), has awarded to you (the “Award”), pursuant to the Newpark Resources, Inc., 2003
Long Term Incentive Plan (the “Plan”), 
            
    shares of Deferred Stock (the “Award
Shares”). The Award Shares vest and become payable share for share in Common Stock (“Stock”) of
the Company, subject to satisfaction of the vesting criteria (“Criteria”) set forth in Exhibit A
(“Exhibit A”) attached to this Award Letter and on the other terms and conditions set forth herein.
Please acknowledge receipt of this Award Letter by signing the enclosed copy in the space below
for “Particpant” and returning it to me.

     1. Compliance with Plan. The Award is granted pursuant to the Plan and is subject in
its entirety to the provisions of the Plan, all of which are incorporated by reference herein.
Terms used in this letter that are defined in the Plan shall have the same meanings herein as in
the Plan.

     2. Transfer Restrictions. Neither the Award Shares nor any interest in the Award
Shares may be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of during
the Performance Period. Any purported disposition of Award Shares in violation of this Paragraph
shall be null and void. Upon the vesting of Award Shares in accordance with this Award Letter, the
Stock issued with respect to such vested Award Shares shall be free from the transfer restrictions
and risk of forfeiture, subject only to transfer restrictions, if any, required for compliance with
the Securities Act of 1933.

     3. Forfeiture Conditions.

          3.1 The Award Shares are subject to forfeiture, in whole or in part, as provided herein and in
Exhibit A.

          3.2 Except as provided in subparagraph 3.3, if your employment with the Company or a
subsidiary of the Company terminates or is terminated before the end of the Performance Period, the
Award Shares shall be immediately forfeited by you and reacquired by the Company without any
payment or other consideration to you, and you shall have no further rights with respect to the
Award.

          3.3 Notwithstanding subparagraph 3.2:

 

 

               3.3.1 All of the Award Shares shall vest upon the occurrence before January 1,
2008, of a Change of Control of Newpark, provided you are employed by Newpark or a subsidiary
immediately before the Change of Control occurs.

               3.3.2 If your employment with the Company or a subsidiary terminates before the end of the
Performance Period by reason of your death, disability (as determined by the Committee) or
retirement at normal retirement age, and it is subsequently determined that the Criteria applicable
to the Performance Period were satisfied, a number of Award Shares determined by multiplying the
number of Award Shares that would have vested if your employment had continued throughout the
Performance Period by a fraction the numerator of which is the number of whole months from December
31, 2004, until such termination, and the denominator of which is 36, shall vest, and the balance
of the Award Shares shall be forfeited as provided in subparagraph 3.2.

     4. Share Certificates. No certificates for Stock or Award Shares shall be issued with
respect to unvested Award Shares. A share certificate representing the Stock to be issued with
respect to any Award Shares that have vested shall be issued in your name as soon as practicable
after such vesting occurs, and no later than March 15, 2008.

     5. No Rights as a Shareholder. Unless and until Stock is issued with respect to
vested Award Shares, you shall have none of the rights of a shareholder with respect to any Stock
issuable on vesting of Award Shares.

     6. Adjustments. The number and kind of shares of Stock issuable with respect to each
Award Share that vests (initially one share of Common Stock for each Award Share) shall be subject
to adjustment upon the occurrence of certain events, as provided in Section 7 of the Plan.

     7. Miscellaneous.

          7.1 The Company shall have the right, at the time of your taxation with respect to Award
Shares or Stock, to make adequate provision for any federal, state, local and foreign taxes which
it believes are or may be required by law to be withheld with respect to Award Shares or Stock, as
specified in the Plan.

          7.2 Nothing in the Plan or this Award Letter shall confer upon you any right to continue in
the employ of the Company or interfere in any way with the right of the Company to terminate your
employment at any time.

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          7.3 This Award Letter shall be construed in accordance with and governed by the laws of the
State of Delaware, U.S.A..

	 	 	 	 	 
	

	 	 	 	Sincerely,
	 
	 	 	 	 
	

	 	 	 	James D. Cole, Chairman of the Board

And Chief Executive Officer
	 
	 	 	 	 
	RECEIPT ACKNOWLEDGED:
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

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EXHIBIT A TO 2005 AWARD LETTER

     8. Definitions. Terms used in this Exhibit A that are defined in the Award Letter to
which this Exhibit A is attached shall have the same meanings herein as in the Award Letter,
including terms defined in the Award Letter by reference to the Plan.

     9. Vesting Criteria. Award Shares shall vest at the end of the Performance Period
based on the performance of Newpark during the entire three year Performance Period. No Award
Shares vest if Newpark’s performance is below the “Expected Level” (as shown in the table below)
for the two indicated Criteria. Vesting begins when Newpark achieves the “Expected Level” (as
shown in the table below) for either of the indicated Criteria, and the full Award vests and is
payable in Stock if Newpark’s performance is at or above the “Over Achievement” level for both
Criteria. For performance between the Expected Level and the Over Achievement level, straight line
interpolation, as determined by the Committee, will be used to determine the number of Award Shares
that vest. The Criteria for the three year Performance Period ending December 31, 2007, are as
follows:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annualized Total	 	Average Return	 	 
	 	 	Shareholder Return	 	on Equity	 	Portion of Contingent
	 	 	(50%)	 	(50%)	 	Award Vested
	 
	 	 	 	 	 	 	 	 	 	 
	Expected Level

	 	50th Percentile of OSX
Industry Group
	 	 	8	%	 	 	20	%
	 
	 	 	 	 	 	 	 	 	 	 
	Over-Achievement

Level

	 	75th Percentile of OSX
Industry Group
	 	 	14	%	 	 	100	%

     10. Forfeiture of Non-Vested Shares. Except as otherwise provided in the Award
Letter, all of the Award Shares that have not vested at the end of the Performance Period shall be
forfeited, and no Stock shall be issued with respect to the forfeited Award Shares.

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