Newpark Resources, Inc. has entered into its standard form of Indemnification Agreement with James E. Braun and Mark J. Airola.   As previously announced in our Current Report on Form 8-K filed on September 20, 2006, Mr. Braun will serve as our Vice President and Chief Financial Officer beginning October 11, 2006, and Mr. Airola serves as our Chief Administrative Officer and General Counsel as of October 2, 2006. 

          The Indemnification Agreement provides, among other things, that we will indemnify each of Messrs. Braun and Airola against certain liabilities that may arise by reason of his status or service as an officer or agent of ours or any other entity for which he served at our request if he acted in good faith and in a manner that he reasonably believed to be in our and our subsidiaries’ best interests and, in the case of a criminal matter, had no reasonable cause to believe that his conduct was unlawful.  In addition, the Indemnification Agreement provides that we will advance expenses incurred by the indemnified party in defending any proceeding prior to the final disposition of that proceeding and that we will obtain directors’ and officers’ insurance if available on reasonable terms.  In addition, the Indemnification Agreement that we entered into with Mr. Braun was modified in Section 3.4(c), “Certain Procedural Matters,” to provide that Mr. Braun will have the right to employ his counsel at his expense for amounts due or paid to his counsel in excess of 20% of the amount due or paid to the counsel engaged by us.  The text of Section 3.4(c) follows:

          Other than serving in the capacities noted above, no material relationship exists between each of Messrs. Braun and Airola and us or any of our affiliates.  This summary of the terms of the form of Indemnification Agreement is qualified in its entirety by the text of the agreement, a copy of which is attached as Exhibit 10.2 to our Current Report on Form 8-K filed on June 13, 2006 and incorporated herein by reference.