Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (this “Agreement”), dated as of December 2, 2021, by and between DRIL-QUIP,
INC. a Delaware corporation (the “Company”), and JEFFREY BIRD (the “Executive”) shall become effective as of January 1, 2022 (the “Effective Date”). 

WITNESSETH: 

WHEREAS, the Executive is currently employed as the Company’s President and Chief Operating Officer pursuant to that Employment
Agreement dated March 7, 2017 (the “Original Agreement”); and 
 WHEREAS, the Company has promoted the
Executive to the position of Chief Executive Officer of the Company effective as of the Effective Date, and the Executive has accepted such promotion; and 

WHEREAS, the Original Agreement will continue to be effective until the Effective Date; and 

WHEREAS, in entering into this Agreement, the Company desires to provide the Executive with substantial incentives to continue to serve
the Company on and following the Effective Date as one of its senior executives performing at the highest level of leadership and stewardship, without distraction or concern over minimum compensation, benefits or tenure, manage the Company’s
future growth and development, and maximize the returns to the Company’s stockholders; and 
 WHEREAS, the Executive shares
these objectives and desires to serve as the Company’s Chief Executive Officer on the terms set forth herein. 
 NOW, THEREFORE,
in consideration of the premises and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, effective as of the Effective Date, the Company and the Executive hereby enter into this Agreement: 

1. Employment. The Company agrees that the Company or an Affiliate will employ the Executive, and the Executive agrees to be employed by
the Company or an Affiliate, for the period set forth in Section 2, in the position and with the duties and responsibilities set forth in Section 3, and upon the other terms and conditions herein provided. Unless otherwise defined in
another section of this Agreement, capitalized terms used herein shall have the meanings set forth in Section 12. For the avoidance of doubt, if the Executive’s employment with the Company is terminated for any reason prior to the
Effective Date, then this Agreement shall automatically be null and void ab initio and of no force or effect, and the Original Agreement shall remain and continue in effect in accordance with its terms. 

 2. Employment Term. The employment of the Executive by the Company under this
Agreement shall commence as of the Effective Date and shall terminate on December 31, 2024 (the “Initial Expiration Date”). Such employment under this Agreement shall automatically be extended for additional one-year periods unless either the Company or the Executive notifies the other party at least 90 days in advance of the Initial Expiration Date that it will not be so extended and, thereafter, will be further
extended automatically on each subsequent anniversary of the Initial Expiration Date for additional one-year periods unless either the Company or the Executive notifies the other party at least 90 days in
advance of the next anniversary of the Initial Expiration Date that it will not be so extended. The period of the Executive’s employment under this Agreement shall be referred to herein as the “Employment Term.” In the
event that one party notifies the other in accordance with this Section 2 that it does not wish the Employment Term to be extended, no further extensions of the Employment Term shall occur and this Agreement shall terminate at the end of the
then current Employment Term. The foregoing notwithstanding, if a Change of Control occurs during the Employment Term, the Company shall not cause the Employment Term to end pursuant to this Section 2 until after the Change of Control Period
ends. During the Employment Term, the Executive shall be an “at will” employee of the Company, and the Executive’s employment may be terminated at any time in accordance with Section 5. 

3. Positions and Duties. 

(a) During the Employment Term, the Executive shall serve in the position of President and Chief Executive Officer of the Company and shall
have such duties, functions, responsibilities and authority commensurate with such position. The Executive shall report directly to the Company’s Board of Directors (the “Board”). 

(b) During the Employment Term, the Executive shall devote the Executive’s full time, skill and attention, and the Executive’s
reasonable best efforts to the business and affairs of the Company, and in furtherance of the business and affairs of its Affiliates, to the extent necessary to discharge faithfully and efficiently the duties and responsibilities delegated and
assigned to the Executive herein or pursuant hereto, except for usual, ordinary and customary periods of vacation and absence due to illness or other disability; provided, however, that the Executive may (i) serve on industry-related,
civic or charitable boards or committees, (ii) with the approval of the Board, serve on corporate boards or committees, (iii) deliver lectures, fulfill speaking engagements or teach at educational institutions, and (iv) manage the
Executive’s personal investments, so long as such activities do not significantly interfere with the performance and fulfillment of the Executive’s duties and responsibilities as an employee of the Company or an Affiliate in accordance
with this Agreement and, in the case of the activities described in clause (ii) of this proviso, will not, in the good faith judgment of the Board, constitute an actual or potential conflict of interest with the business of the Company or an
Affiliate. 
 (c) In connection with the Executive’s employment hereunder, the Executive shall be based at the headquarters of the
Company in Houston, Texas, subject, however, to required travel for the business of the Company and its Affiliates. 
 (d) All services that
the Executive may render to the Company or any of its Affiliates in any capacity during the Employment Term shall be deemed to be services required by this Agreement and consideration for the compensation provided for herein. 

  
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 4. Compensation and Related Matters. 

(a) Base Salary. During the Employment Term, the Company shall pay to the Executive an annual base salary of $$600,000
(“Base Salary”), payable in accordance with the Company’s normal payroll practices as in effect from time to time, less withholding for taxes and deductions for other appropriate items. During the Employment Term, the
Executive’s Base Salary shall be subject to such increases (but not decreases), if any, as may be determined from time to time by the Board in its sole discretion; provided, however, that the Executive’s Base Salary shall be
reviewed by the Board at least annually, with a view to making such upward adjustment, if any, as the Board deems appropriate. The term “Base Salary” as used in this Agreement shall refer to the Base Salary as so increased. Payments of
Base Salary to the Executive shall not be deemed exclusive and shall not prevent the Executive from participating in any employee benefit plans, programs or arrangements of the Company and its Affiliates in which the Executive is entitled to
participate. Payments of Base Salary to the Executive shall not in any way limit or reduce any other obligation of the Company hereunder, and no other compensation, benefit or payment to the Executive hereunder shall in any way limit or reduce the
obligation of the Company regarding the Executive’s Base Salary hereunder. 
 (b) Annual Bonus. For each 12-month period ending December 31 during the Employment Term (the “Performance Period”), the Executive shall be eligible to receive an annual cash bonus (the “Annual
Bonus”) in accordance with the Company’s normal bonus practices or under any Annual Bonus plan or program adopted by the Company after the Effective Date. Any such Annual Bonus shall be paid in a single lump-sum payment not later than March 15 of the calendar year immediately following the Performance Period to which such bonus relates; provided, however, that if March 15 is not a Business Day,
such payment shall be made on the Business Day immediately preceding March 15. 
 (c) Employee Benefits. 

(i) Incentive, Savings and Retirement Plans. During the Employment Term, the Executive shall be entitled to participate
in all incentive, savings and retirement plans, programs and arrangements provided by the Company and its Affiliates, as amended from time to time, on the same basis as those benefits are generally made available to other senior executives of the
Company. 
 (ii) Welfare Benefit Plans. During the Employment Term, the Executive and the Executive’s dependents,
as the case may be, shall be eligible to participate in and shall receive all benefits under the welfare benefit plans, programs and arrangements provided by the Company and its Affiliates (including medical, prescription, dental, disability,
employee life, group life, accidental death and travel accident insurance plans, programs and arrangements), as amended from time to time, on the same basis as those benefits are generally made available to other senior executives of the Company.

 (iii) Right to Amend and Terminate. The Executive’s right to participate in the plans, programs and
arrangements described in this Section 3(c) shall not affect the Company’s right to amend or terminate the general applicability of such plans, programs and arrangements. The Company may, in its sole discretion and from time to time,
amend, eliminate or establish additional benefit plans, programs and arrangements. 

  
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 (d) Expenses. During the Employment Term, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in performing the Executive’s duties and responsibilities hereunder in accordance with the policies, practices and procedures of the Company. 

(e) Vacation. During the Employment Term, the Executive shall be entitled to 20 days of paid time off subject to the policies,
practices and procedures of the Company as in effect on and after the Effective Date. 
 5. Termination of Employment. 

(a) Death. The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Term.

 (b) Disability. If the Company determines in good faith that the Disability (as defined below) of the Executive has occurred
during the Employment Term, the Company may give the Executive notice of its intention to terminate the Executive’s employment. In such event, the Executive’s employment hereunder shall terminate effective on the 30th day after receipt of
such notice by the Executive (the “Disability Effective Date”); provided, however, that within the 30-day period after such receipt, the Executive shall not have returned to
full-time performance of the Executive’s duties. For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties with the Company or an Affiliate on a full-time basis
for either (i) 180 consecutive Business Days or (ii) in any two-year period, 270 nonconsecutive Business Days, in either instance, as a result of incapacity due to mental or physical illness which is
determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative (such agreement as to acceptability not to be withheld unreasonably). 

(c) Termination by Company. The Company may terminate the Executive’s employment hereunder for Cause (as defined below) or without
Cause at any time during the Employment Term. For purposes of this Agreement, “Cause” shall mean the Company’s termination of the Executive’s employment by reason of: 

(i) the commission of a felony or any other crime by the Executive involving intentional and actual fraud, dishonesty or breach
of trust; 
 (ii) willful misconduct or gross negligence with respect to the Executive’s performance of his employment
duties for the Company, including the duties as contemplated by Section 3 above (other than such failure resulting from incapacity due to physical or mental illness or injury); 

(iii) conduct by the Executive bringing the Company or its Affiliates into material public disgrace; or 

  
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 (iv) material failure to perform duties of the office held by the Executive
as reasonably directed in writing by the Board (other than such failure resulting from incapacity due to physical or mental illness or injury); 

provided, however, that Cause shall not exist in the case of clause (iv) unless and until the Board has given written notice
to the Executive detailing the alleged grounds for Cause and such grounds remain uncured for 30 days thereafter. 
 (d) Termination by
Executive. The Executive may terminate the Executive’s employment hereunder at any time during the Employment Term for Good Reason (as defined below) or voluntarily without Good Reason. For purposes of this Agreement, “Good
Reason” shall mean any of the following (without the Executive’s written consent): 
 (i) a material
diminution in the Executive’s position (including offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 3, or a material adverse change in Executive’s reporting line or change in
title, including the Executive’s failure to serve as the Chief Executive Officer of any successor entity or the parent of any successor entity following a Change of Control; 

(ii) any material failure by the Company to comply with any of the provisions of this Agreement; 

(iii) the Company’s requiring the Executive to be based at any office located more than 50 miles from 6401 N. Eldridge
Parkway, Houston, Texas 77041; or 
 (iv) any failure by the Company to comply with and satisfy the requirements of
Section 20(c). 
 Notwithstanding the foregoing, Good Reason shall cease to exist under this Agreement unless (i) within 60 days of
Executive’s knowledge of the initial existence of the condition or conditions giving rise to Good Reason the Executive provides written notice to the Company of the existence of such condition or conditions, (ii) the Company fails to
remedy such condition or conditions within 30 days following the receipt of such written notice (the “Cure Period”); (iii) if any such condition is not remedied within such Cure Period, the Executive provides a Notice of
Termination (as defined below) for Good Reason in accordance with the provisions of Section 5(e) and (iv) the Executive’s employment terminates on the Termination Date set forth in such Notice of Termination. 

(e) Notice of Termination. Any termination of the Executive’s employment hereunder by the Company or by the Executive, other than
a termination pursuant to Section 5(a), shall be communicated by a Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) in the case of a termination for Disability, Cause or Good Reason, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of
the Executive’s employment under the provision so indicated, and (iii) specifies the Termination Date; provided, however, that notwithstanding any provision in this Agreement to the contrary, a Notice of Termination given in
connection with a 

  
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termination for Good Reason shall be given by the Executive within a reasonable period of time, not to exceed ten(10) Business Days following the end of the Cure Period. The failure by the
Company or the Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Disability, Cause or Good Reason shall not waive any right of the Company or the Executive hereunder or preclude the
Company or the Executive from asserting such fact or circumstance in enforcing the Company’s or the Executive’s rights hereunder. 

(f) Termination Date. For purposes of this Agreement, the Termination Date will be (i) if the Executive’s employment is
terminated by the Executive’s death, the date of the Executive’s death, (ii) if the Executive’s employment is terminated because of the Executive’s Disability, the Disability Effective Date, (iii) if the
Executive’s employment is terminated by the Company (or applicable Affiliate) for Cause or by the Executive for Good Reason, the date on which the Notice of Termination is given, and (iv) if the Executive’s employment is terminated
for any other reason, the date specified in the Notice of Termination, which date shall in no event be earlier than the date such notice is given. 

6. Obligations of the Company upon Termination of the Executive. 

(a) Accrued Obligations. If the Executive’s employment terminates hereunder for any reason, the Company shall pay or provide to or
in respect of the Executive, on the tenth Business Day next following the Executive’s Termination Date (or such earlier date as may be required by applicable law), a lump-sum cash payment in an amount
equal to the sum of (i) the Executive’s accrued but unpaid Base Salary through the Termination Date and (ii) compensation for all of the Executive’s accrued but unpaid vacation time based upon the Executive’s current Base
Salary (notwithstanding any limitation on payment for accrued vacation then set forth in the Company’s policies or practices) (the sum of the amounts described in clauses (i) and (ii), the “Accrued Obligation”).

 (b) By the Company Without Cause or By the Executive for Good Reason and Prior to Change of Control Period. Subject to the release
requirements set forth in Section 6(e) of this Agreement, if prior to the end of the Employment Term and not during a Change of Control Period the Executive’s employment is terminated by the Company without Cause or by the Executive for
Good Reason, then the Company shall pay or provide to or in respect of the Executive the following amounts and benefits (the “Severance Benefits”): 

(i) The Executive shall receive a lump-sum cash payment in an amount equal to two times
his Base Salary on the 60th day following the Termination Date. 
 (ii)
Following the Termination Date, the Executive and his eligible dependents shall continue to receive medical, dental, vision and life insurance coverage at the same active employee premium cost as a similarly situated active employee until the
earlier of (A) his receipt of equivalent coverage and benefits under the plans and programs of a subsequent employer (such coverage and benefits to be determined on a
coverage-by-coverage or benefit-by-benefit basis) or (B) two years after the
Termination Date; provided, however, that to the extent the coverage described above cannot be 

  
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provided under the Company’s benefit plans, or if the Company’s obligations contemplated by this Section 6(b)(ii) would result in the imposition of excise taxes on the Company for
failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended (to the extent applicable), the Company shall discontinue such coverage, and, in either situation, during the period
described above in this Section 6(b)(ii), the Executive shall be entitled to a monthly cash payment equal to the Company’s monthly portion of the premiums under such plans, determined as of the Termination Date. This provision of continued
participation in the Company’s medical, dental and vision plans is intended to satisfy the Company’s COBRA obligation, if any. 
 For the
avoidance of doubt, the non-renewal of the Employment Term by the Company shall not constitute a termination without Cause that entitles the Executive to receive the Severance Benefits. 

(c) By the Company Without Cause or By the Executive for Good Reason and During the Change of Control Period. Subject to the release
requirements set forth in Section 6(e) of this Agreement, if prior to the end of the Employment Term and during a Change of Control Period the Executive’s employment is terminated by the Company without Cause or by the Executive for Good
Reason, then the Company shall pay or provide to or in respect of the Executive the following amounts and benefits (the “COC Severance Benefits”): 

(i) The Executive shall receive a lump-sum cash payment in an amount equal to three
times his Base Salary on the 60th day following the Termination Date. 

(ii) The Executive shall receive a lump-sum cash payment in an amount equal to the
product of (a) the greater of (x) the target amount for the Annual Bonus for the Performance Period during which the Termination Date occurs, if any, or (y) the average amount paid pursuant to Section 4(b) in respect of the three
most recent applicable Performance Periods prior to the Termination Date (including, for the avoidance of doubt, any such Performance Periods that precede the Effective Date) and (b) a fraction, the numerator of which shall be the number of
Business Days from the beginning of such Performance Period to the Termination Date, inclusive, and the denominator of which shall be 260, provided, however, that any amounts to be paid pursuant to this Section 6(c)(ii) shall be
paid in accordance with Section 4(b). 
 (iii) On the 60th day
following the Termination Date, the Executive shall receive a lump-sum cash payment in an amount equal to three times the greater of (a) the target amount for the Annual Bonus for the Performance Period
during which the Termination Date occurs, if any, or (b) the average amount paid pursuant to Section 4(b) in respect of the three most recent applicable Performance Periods prior to the Termination Date (including, for the avoidance of
doubt, any such Performance Periods that precede the Effective Date). 

  
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 (iv) Effective as of the Termination Date and unless greater benefits are
otherwise provided in the terms of the award agreement under which a Compensatory Award (as defined below) was granted, the Company shall provide for (A) the immediate vesting, settlement and exercisability of, and lapse of any restrictions on
sale or transfer (other than any such restriction arising by operation of law) with respect to, each and every stock option, restricted stock award, restricted stock unit award and other equity-based award and performance award (with such
performance awards vesting at target level) (each, a “Compensatory Award”) that is outstanding as of immediately prior to the Termination Date and (B) the extension of the term during which each and every Compensatory
Award may be exercised by the Executive until the earlier of (x) the first anniversary of the Termination Date or (y) the date upon which the right to exercise any Compensatory Award would have expired if the Executive had continued to be
employed by the Company under the terms of this Agreement until the date the Employment Term would have ended if the Executive’s employment had not terminated and no further extensions of the Employment Term had occurred. 

(v) Following the Termination Date, the Executive and his eligible dependents shall continue to receive medical, dental, vision
and life insurance coverage at the same active employee premium cost as a similarly situated active employee until the earlier of (A) his receipt of equivalent coverage and benefits under the plans and programs of a subsequent employer (such
coverage and benefits to be determined on a coverage-by-coverage or benefit-by-benefit
basis) or (B) three years after the Termination Date; provided, however, that to the extent the coverage described above cannot be provided under the Company’s benefit plans, or if the Company’s obligations contemplated by this
Section 6(c)(v) would result in the imposition of excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended (to the extent applicable), the
Company shall discontinue such coverage, and, in either situation, during the period described above in this Section 6(c)(v), the Executive shall be entitled to a monthly cash payment equal to the Company’s monthly portion of the premiums
under such plans, determined as of the Termination Date. This provision of continued participation in the Company’s medical, dental and vision plans is intended to satisfy the Company’s COBRA obligation, if any. 

(d) With Cause; Other than for Good Reason; Due to Death or Disability. If prior to the end of the Employment Term the
Executive’s employment is terminated by reason of (i) the Company’s termination of Executive’s employment with Cause or (ii) the Executive’s (A) voluntary termination of his employment other than for Good Reason or
(B) death or Disability, then this Agreement shall terminate without further obligations to the Executive hereunder other than for (x) the payment of the Accrued Obligation to the Executive, and (y) the timely payment or provision of
vested deferred compensation and other employee benefits if and when otherwise due. 
 (e) Release Requirement. As a condition to
receiving the Severance Benefits in Section 6(b) or COC Severance Benefits in Section 6(c) of this Agreement, the Executive shall be required to: (i) execute on or before the Release Expiration Date (as defined below), and not revoke
within any time provided by the Company to do so, a release of all claims in a form acceptable to the Company (the “Release”), which Release shall release the Company and each of its Affiliates and their

  
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respective affiliates, and the foregoing entities’ respective shareholders, members, partners, officers, managers, directors, fiduciaries, employees, representatives, agents and benefit
plans (and fiduciaries of such plans) from any and all claims, including any and all causes of action arising out of the Executive’s employment with the Company and each of its Affiliates or the termination of such employment, but excluding all
claims to the Severance Benefits or COC Severance Benefits the Executive may have under this Section 6, rights to vested benefits or continuation coverage under Company-sponsored health and retirement plans pursuant to the terms of such plans,
and rights to defense and indemnification from the Company in accordance with the Company’s governing documents or any separate indemnification agreement entered into between the Executive and the Company, and any directors and officers
liability insurance in accordance with the terms of such insurance policies; and (ii) abide by all of the Executive’s post-separation obligations hereunder in Sections 9, 10 and 11 of this Agreement (and in any other agreement between the
Executive and the Company). If the Release is not executed and returned to the Company on or before the Release Expiration Date, and the required revocation period has not fully expired without revocation of the Release by the Executive, then the
Executive shall not be entitled to any portion of the Severance Benefits or COC Severance Benefits. As used herein, the “Release Expiration Date” is that date that is 21 days following the date upon which the Company delivers
the Release to the Executive (which shall occur no later than 7 days after the Termination Date and which number of days shall be counted in accordance with the requirements of the Age Discrimination in Employment Act of 1967
(“ADEA”)) or, in the event that such termination of employment is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in ADEA), the date that is 45 days
following such delivery date. 
 (f) Clawback. Any compensation paid or provided by the Company under this Agreement or otherwise
shall be subject to recovery by the Company pursuant to any Company policy regarding clawbacks or recovery of erroneously awarded compensation, but only to the extent such policy is in effect prior to a Change of Control. 

(g) Expiration of the Employment Term; Non-Renewal. If either the Company or the Executive
elects to not to extend the Employment Term by not renewing this Agreement in accordance with Section 2, the Executive shall not be entitled to any additional compensation upon his termination of employment with the Company other than the
Accrued Obligation. For the avoidance of doubt, a termination of employment by the Company following the end of the Employment Term shall not entitle the Executive to receive any Severance Benefits regardless of the reason for his termination of
employment. 
 7. Certain Excise Taxes. Notwithstanding anything to the contrary in this Agreement, if the Executive is a
“disqualified individual” (as defined in Section 280G(c) of the Code), and the payments and benefits provided for under this Agreement, together with any other payments and benefits which the Executive has the right to receive from
the Company or any of its Affiliates, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the payments and benefits provided for under this Agreement shall be either (a) reduced (but not
below zero) so that the present value of such total amounts and benefits received by the Executive from the Company and its Affiliates will be one dollar ($1.00) less than three times the Executive’s “base amount”(as defined in
Section 280G(b)(3) of the Code) and so that no portion of such amounts and benefits received by the Executive shall be subject to 

  
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the excise tax imposed by Section 4999 of the Code or (b) paid in full, whichever produces the better net after-tax position to the Executive
(taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes). The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits to be paid in
cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be
made first in time) and, then, reducing any benefit to be provided in kind hereunder in a similar order. The determination as to whether any such reduction in the amount of the payments and benefits provided hereunder is necessary shall be made by
the Company in good faith. If a reduced payment or benefit is made or provided and through error or otherwise that payment or benefit, when aggregated with other payments and benefits from the Company (or its Affiliates) used in determining if a
parachute payment exists, exceeds one dollar ($1.00) less than three times the Executive’s base amount, then the Executive shall immediately repay such excess to the Company upon notification that an overpayment has been made. Nothing in this
Section 7 shall require the Company (or any of its Affiliates) to be responsible for, or have any liability or obligation with respect to, the Executive’s excise tax liabilities under Section 4999 of the Code. 

8. Representations and Warranties. 

(a) The Company represents and warrants to the Executive that the execution, delivery and performance by the Company of this Agreement have
been duly authorized by all necessary corporate action of the Company and do not and will not conflict with or result in a violation of any provision of, or constitute a default under, any contract, agreement, instrument or obligation to which the
Company is a party or by which it is bound. 
 (b) The Executive represents and warrants to the Company that the execution, delivery and
performance by the Executive of this Agreement do not and will not conflict with or result in a violation of any provision of, or constitute a default under, any contract, agreement, instrument or obligation to which the Executive is a party or by
which the Executive is bound. 
 9. Confidential Information; Non-Disclosure. 

(a) The Executive recognizes and acknowledges that the Company’s and its Affiliates’ trade secrets and other confidential or
proprietary information, as they may exist from time to time, including all scientific or technical information regarding drilling technologies and subsea wellheads and other products or services provided by the Company and its Affiliates;
information about design, process, procedure, formula or improvement with respect to the Company’s products and services that is secret and of value; technical or non-technical data, formula, patterns,
compilations, programs, devices, methods, techniques, drawings, processes, financial data, customers, pricing information and strategies, financial performance and strategies, financial projections, operating and capital budgets, loan and other debt
agreements, joint venture and similar agreements, environmental reports and information, tax and asset schedules, leases, studies, interpretations, and related information; and information about legal disputes, settlements, and employment and
administrative matters arising from the affairs of the Company and its Affiliates (“Confidential Information”), are valuable, special and unique assets of the Company’s and/or such Affiliates’ business, access to
and knowledge of which are essential to the performance of the Executive’s duties hereunder. The Executive confirms that all such Confidential Information constitutes the exclusive property of the Company and/or such Affiliates. 

  
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 (b) During the Employment Term and thereafter without limitation of time, the Executive
shall hold in strict confidence and shall not, directly or indirectly, disclose or reveal to any person, or use for the Executive’s own personal benefit or for the benefit of anyone else, any Confidential Information (whether or not acquired,
learned, obtained or developed by the Executive alone or in conjunction with others) belonging to or concerning the Company or any of its Affiliates, except (i) with the prior written consent of the Company duly authorized by the Board,
(ii) in the course of the proper performance of the Executive’s duties hereunder, (iii) for Confidential Information (x) that becomes generally available to the public other than as a result of unauthorized disclosure by the
Executive or the Executive’s affiliates or (y) that becomes available to the Executive on a nonconfidential basis from a source other than the Company or its Affiliates who is not bound by a duty of confidentiality, or other contractual,
legal or fiduciary obligation, to the Company, or (iv) as required by applicable law or legal process provided that prior to the disclosure or use by the Executive of any Confidential Information under this clause (iv), the Executive will give
prior written notice thereof to the Company and provide the Company with the opportunity to contest that disclosure or use. 
 (c)
Notwithstanding the foregoing, nothing in this Section 9 prohibits the Executive from reporting possible violations of law or regulation to any governmental agency or entity (or from making any other protected disclosures) without prior notice
to the Company. Pursuant to the Defend Trade Secrets Act of 2016, the Executive shall not be held criminally or civilly liable under any Federal or state trade secret law for the disclosure of any Confidential Information that (i) is made
(A) in confidence to a Federal, state or local government official, either directly or indirectly, or to an attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law or (ii) is made in a
complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. 
 (d) The provisions of this
Section 9 shall continue in effect notwithstanding termination of the Executive’s employment hereunder for any reason. 
 10.
Restrictive Covenants. 
 (a) Definitions. As used in this Section 10, the following terms shall have the following
meanings: 
 (i) “Business” shall mean any
endeavor in which the Company, including its Affiliates, is engaged in during the most recent twenty-four months of the Executive’s employment (the “Reference Period”), and shall include the provision of products or
services that are substantially similar to the products or services provided by any business, partnership, firm, corporation or other entity which the Company or one of its Affiliates has made substantial progress toward acquiring during the
Reference Period. For the purposes of this definition, the execution by the Company or one of its Affiliates of a binding or non-binding letter of intent, term sheet, or similar agreement or a confidentiality
agreement or similar agreement with respect to the acquisition of a business, partnership, firm, corporation or other entity during the Reference Period shall constitute sufficient evidence of the Company or such Affiliate having made substantial
progress towards acquiring such business, partnership, firm, corporation or other entity. 

  
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 (ii) “Competing Business” shall mean any business,
individual, partnership, firm, corporation or other entity which wholly or in any significant part engages in any business competing with the Business in the Restricted Area. In no event will the Company or any of its Affiliates be deemed a
Competing Business. 
 (iii) “Governmental Authority” shall mean any governmental,
quasi-governmental, state, county, city or other political subdivision of the United States or any other jurisdiction, or any agency, court or instrumentality, foreign or domestic, or statutory or regulatory body thereof. 

(iv) “Legal Requirement” shall mean any law, statute, code, ordinance, order, rule, regulation,
judgment, decree, injunction, franchise, permit, certificate, license, authorization, or other directional requirement (including any of the foregoing that relates to environmental standards or controls, energy regulations and occupational, safety
and health standards or controls including those arising under environmental laws) of any Governmental Authority. 
 (v)
“Prohibited Period” shall mean the period during which the Executive is employed by the Company hereunder and a period of 12 months following the Termination Date, as such period may be extended by the amount(s) of time, if
any, during which the Executive is not in compliance with Section 10(b). 
 (vi) “Restricted
Area” shall mean any country or subdivision thereof in which the Executive works or about which the Executive develops or receives Confidential Information, in either case during the Reference Period and in which the Company or its
Affiliates engages in the Business. 
 (b) Non-Competition;
Non-Solicitation. The Executive and the Company agree to the non-competition and non-solicitation provisions of this
Section 10(b)(i) in consideration for the Confidential Information provided by the Company to the Executive pursuant to Section 9; (ii) to protect the trade secrets and confidential information of the Company or its Affiliates disclosed or
entrusted to the Executive by the Company or its Affiliates or created or developed by the Executive for the Company or its Affiliates, the business goodwill of the Company or its Affiliates developed through the efforts of the Executive and/or the
business opportunities disclosed or entrusted to the Executive by the Company or its Affiliates; and (iii) as an additional incentive for the Company to enter into this Agreement. 

(i) Subject to the exceptions set forth in Section 10(b)(ii), the Executive covenants and agrees that during the
Prohibited Period (A) the Executive will refrain from carrying on or engaging in, directly or indirectly, any Competing Business in the Restricted Area and (B) the Executive will not, and the Executive will cause the Executive’s
affiliates not to, directly or indirectly, own, manage, operate, join, become an 

  
 -12- 

 
employee, partner, owner or member of (or an independent contractor to), control or participate in or loan money to, sell or lease equipment to or sell or lease real property to any business,
individual, partnership, firm, corporation or other entity which engages in a Competing Business in the Restricted Area. 

(ii) Notwithstanding the restrictions contained in Section 10(b)(i), the Executive or any of the Executive’s
affiliates may own an aggregate of not more than 1% of the outstanding voting securities of any class of an entity engaged in a Competing Business, if such securities are listed on a national securities exchange or regularly traded in the over-the-counter market by a member of a national securities exchange, without violating the provisions of Section 10(b), provided that neither the Executive nor any of
the Executive’s affiliates (A) has the power, directly or indirectly, to control or direct the management or affairs of such entity or (B) is involved in the management of such entity. 

(iii) The Executive further covenants and agrees that during the Prohibited Period, the Executive will not, and the Executive
will cause the Executive’s affiliates not to (A) engage or employ, or solicit or contact with a view to the engagement or employment of, any person who is then currently an officer or employee of the Company or any of its Affiliates or was
an officer or employee of the Company or any of its Affiliates within the prior six months or (B) canvass, solicit, approach or entice away or cause to be canvassed, solicited, approached or enticed away from the Company or any of its
Affiliates any person who or which is or was (1) a customer of the Company or any of its Affiliates during the Reference Period and (2) with whom or which the Executive either had contact or a relationship with or about whom or which the
Executive developed or acquired Confidential Information during the Reference Period. 
 (iv) The Executive may seek the
written consent of the Company, which may be withheld for any or no reason, to waive the provisions of this Section 10 on a case-by-case basis. 

(v) The Executive recognizes that the Executive is a high-level, executive employee who will develop and/or be provided with
access to trade secrets as part of the Executive’s employment and that the restrictive covenants set forth in this Section 10(b) are reasonable and necessary in light of the Executive’s position and access to the Company’s trade
secrets. 
 (c) Reasonableness; Enforcement. The Executive and the Company agree and acknowledge that the limitations as to time,
geographical area and scope of activity to be restrained as set forth in Section 10(b) are reasonable and do not impose any greater restraint than is necessary to protect the legitimate business interests of the Company. The Executive hereby
represents to the Company that the Executive has read and understands, and agrees to be bound by, the terms of this Section 10. The Executive acknowledges that the geographic scope and duration of the covenants contained in this Section 10
are the result of arm’s-length bargaining and are fair and reasonable in light of (i) the nature and wide geographic scope of the operations of the Business, (ii) the Executive’s level of
control over and contact with the Business in all jurisdictions in which it is conducted, (iii) the fact that the Business is conducted 

  
 -13- 

 
throughout the Restricted Area and (iv) the amount of compensation, trade secrets and Confidential Information that the Executive is receiving in connection with the performance of the
Executive’s duties hereunder. It is the desire and intent of the parties that the provisions of this Section 10 be enforced to the fullest extent permitted under applicable Legal Requirements, whether now or hereafter in effect and
therefore, to the extent permitted by applicable Legal Requirements, the Executive and the Company hereby waive any provision of applicable Legal Requirements that would render any provision of this Section 10 invalid or unenforceable. 

(d) Reformation. The Company and the Executive agree that the foregoing restrictions are reasonable under the circumstances and that
any breach of the covenants contained in this Section 10 would cause irreparable injury to the Company. The Executive represents that enforcement of the restrictive covenants set forth in this Section 10 will not impose an undue hardship
upon the Executive or any person or entity affiliated with the Executive. The Executive understands that the foregoing restrictions may limit the Executive’s ability to engage in certain businesses anywhere in the Restricted Area during the
Prohibited Period, but acknowledges that the Confidential Information provided to or developed by the Executive is of such importance that it justifies such restriction. Further, the Executive acknowledges that the Executive’s skills are such
that the Executive can be gainfully employed in non-competitive employment, and that the agreement not to compete will not prevent the Executive from earning a living. Nevertheless, if any of the aforesaid
restrictions are found by a court of competent jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable, the parties intend for the restrictions herein set forth to be modified by the court making
such determination so as to be reasonable and enforceable and, as so modified, to be fully enforced. By agreeing to this contractual modification prospectively at this time, the Company and the Executive intend to make this provision enforceable
under the Legal Requirements of all applicable jurisdictions so that the entire agreement not to compete and this Agreement as prospectively modified shall remain in full force and effect and shall not be rendered void or illegal. 

11. Responsibilities with Respect to Confidential Information of Prior Employers. The Company requires the Executive to protect and
secure the Company’s Confidential Information and intellectual property. Likewise, the Company requires the Executive to protect the confidential information and intellectual property of the Executive’s former employers. Accordingly, as a
condition of continued employment with the Company: 
 (a) The Executive agrees not to use, have in the Executive’s possession, or refer
to any information, data, process, or method which is or was claimed to be confidential or proprietary by any former employer or any customer, supplier or consultant of a former employer. 

(b) The Executive will not, during the Employment Term and thereafter, breach any other agreement obligating the Executive to keep in
confidence confidential or proprietary information, knowledge, or data acquired by the Executive in confidence or in trust in connection with prior employment before beginning employment with the Company. The Executive will not disclose to the
Company or any employee of the Company, or induce the Company or any employee of the Company to use in any unauthorized manner any confidential or proprietary information or material belonging to a former employer of the Executive. 

  
 -14- 

 (c) To the extent that the Executive has participated in conversations, meetings or other
sharing of information and ideas with attorneys representing the Executive’s previous employers, the Executive agrees not to disclose the substance or content of such communications to anyone at the Company. 

12. Certain Definitions. Capitalized terms used in the Agreement and not otherwise defined herein shall have the following respective
meanings: 
 (a) “Affiliate” shall mean any company or other entity controlled by, controlling or under common
control with the Company. 
 (b) “Annual Bonus Plan” shall mean any annual bonus or short-term incentive plan or
program established by the Company. 
 (c) “Business Day” shall mean any day other than a Saturday, Sunday or a day
on which banking institutions in the State of New York are closed (whether such closure is authorized or obligated by law or executive order). 

(d) “Change of Control” shall mean: 

(i) there shall have occurred an event required to be reported with respect to the Company in response to Item 6(e) of Schedule
14A of Regulation 14A (or in response to any similar item or any similar schedule or form) promulgated under the Exchange Act, whether or not the Company is then subject to such reporting requirement; 

(ii) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) shall have become the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s
then outstanding voting securities; 
 (iii) the Company or its subsidiary is a party to a merger or other transaction
pursuant to which the shareholders of the other party to such merger or transaction shall have become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company (or the entity resulting from such merger or other transaction) representing 40% or more of the combined voting power of the Company’s then outstanding voting securities (or the then outstanding voting securities of
the entity resulting from such merger or other transaction); 
 (iv) the Company is a party to a merger, consolidation, sale
of assets or other reorganization, or a proxy contest, as a consequence of which members of the Board in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter; or 

(v) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board
(including, for this purpose, any new director whose election or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office
who were directors at the beginning of such period) cease for any reason to constitute at least a majority of the Board. 

  
 -15- 

 (e) “Change of Control Period” shall mean the period commencing on
the occurrence of a Change of Control and ending on the third anniversary of such date. 
 (f) “Code” shall mean the
Internal Revenue Code of 1986, as amended. 
 (g) “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended. 
 (h) “Termination Date” shall mean the date of the Executive’s “separation from service”
within the meaning of Section 409A of the Code and the regulations and other guidance promulgated thereunder with the Company and all of its Affiliates, as described in Section 5(f). 

13. Full Settlement. 

(a) There shall be no right of set off or counterclaim against, or delay in, any payments to the Executive, or to the Executive’s heirs
or legal representatives, provided for in this Agreement, in respect of any claim against or debt or other obligation of the Executive or others, whether arising hereunder or otherwise. 

(b) 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
to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment. 

(c) If the Executive prevails in any material respect, the Company agrees to pay, all costs and expenses (including attorneys’ fees) that
the Executive, or the Executive’s heirs or legal representatives, may reasonably incur as a result of any contest by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement,
or any guarantee of performance thereof (including as a result of any contest by the Executive, or the Executive’s heirs or legal representatives, about the amount of any payment pursuant to this Agreement). The amounts payable by the Company
pursuant to this Section 13(c) shall be paid no later than the end of the taxable year of the Executive that immediately follows the taxable year of the Executive in which such costs and expenses were incurred. 

14. No Effect on Other Contractual Rights. The provisions of this Agreement, and any payment provided for hereunder, shall not reduce
any amounts otherwise payable to the Executive, or in any way diminish the Executive’s rights as an employee of the Company or any of its Affiliates, whether existing on the date of this Agreement or hereafter, under any employee benefit plan,
program or arrangement or other contract or agreement of the Company or any of its Affiliates providing benefits to the Executive. 
 15.
Directors and Officers Insurance. The Company shall ensure that during the Employment Term, the Company acquires and maintains directors and officers liability insurance covering the Executive to the extent it is available at commercially
reasonable rates as determined by the Board. The provisions of this Section 15 shall continue in effect notwithstanding termination of the Executive’s employment hereunder for any reason. 

  
 -16- 

 16. Injunctive Relief. In recognition of the fact that a breach by the Executive of
any of the provisions of Section 9 or Section 10 will cause irreparable damage to the Company and/or its Affiliates for which monetary damages alone will not constitute an adequate remedy, the Company shall be entitled as a matter of right
(without being required to prove damages or furnish any bond or other security) to obtain a restraining order, an injunction, an order of specific performance, or other equitable or extraordinary relief from any court of competent jurisdiction
restraining any further violation of such provisions by the Executive or requiring the Executive to perform the Executive’s obligations hereunder. Such right to equitable or extraordinary relief shall not be exclusive but shall be in addition
to all other rights and remedies to which the Company or any of its Affiliates may be entitled at law or in equity, including the right to recover monetary damages for the breach by the Executive of any of the provisions of this Agreement. 

17. Section 409A. 
 (a)
This Agreement is intended to be exempt from or comply with the requirements of Section 409A of the Code (“Section 409A”) and shall be construed and interpreted in accordance with such
intent. To the extent any payment or benefit provided under this Agreement is subject to Section 409A, such benefit shall be provided in a manner that complies with Section 409A, including any IRS guidance promulgated with respect to
Section 409A. 
 (b) Any provision of this Agreement to the contrary notwithstanding, if the Executive is a “specified
employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, as determined by the Company, on the Executive’s Termination Date, all amounts due under this Agreement that constitute a “deferral of
compensation” within the meaning of Section 409A of the Code, that are provided as a result of a “separation from service” within the meaning of Section 409A of the Code, and that would otherwise be paid or provided during
the first six months following the Executive’s Termination Date, shall be accumulated through and paid or provided on the first Business Day that is more than six months after the Executive’s Termination Date (or, if Executive dies during
such six month period, within 30 days after Executive’s death). 
 (c) All reimbursements or provision of in-kind benefits pursuant to this Agreement shall be made in accordance with Treasury Regulation § 1.409A-3(i)(1)(iv) such that the reimbursement or provision will be
deemed payable at a specified time or on a fixed schedule relative to a permissible payment event. Specifically, the amount reimbursed or in-kind benefits provided under this Agreement during Executive’s
taxable year may not affect the amounts reimbursed or provided in any other taxable year (except that total reimbursements may be limited by a lifetime maximum under a group health plan), the reimbursement of an eligible expense shall be made on or
before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred, and the right to reimbursement or provision of in-kind benefit is not subject to
liquidation or exchange for another benefit. 

  
 -17- 

 (d) If the period during which any payment must be made under Sections 6(b) or 6(c) of this
Agreement begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year to the extent required to avoid any tax, interest or penalties under Section 409A. 

(e) Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are
exempt from, or compliant with, Section 409A and in no event shall any member of the Company or its Affiliates be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A. 
 18. Governing Law and Venue. This Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of Texas, without regard to the principles of conflicts of laws thereof. Venue for any action or proceeding relating to this Agreement and/or the employment
relationship hereunder shall lie exclusively in courts in Harris County, Texas. 
 19. Notices. All notices, requests, demands and
other communications required or permitted to be given or made hereunder by either party hereto shall be in writing and shall be deemed to have been duly given or made (i) when delivered personally, (ii) when sent by facsimile
transmission, or (iii) five days after being deposited in the United States mail, first class registered or certified mail, postage prepaid, return receipt requested, to the party for which intended at the following addresses (or at such other
addresses as shall be specified by the parties by like notice, except that notices of change of address shall be effective only upon receipt): 
  

			
	 If to the Company, at
	 	Dril-Quip, Inc.
		 	 Attention: General Counsel
 6401 N. Eldridge
Pkwy.

		 	Houston, TX 77041
		 	Fax No.: (713) 939-5329

 If to the Executive, at the current address in the Company’s personnel files. 

20. Binding Effect; Assignment; No Third Party Benefit. 

(a) This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and shall be enforceable by the Executive’s legal representatives. 

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

  
 -18- 

 (c) The Company shall require any successor or assign (whether direct or indirect, by
purchase, merger, consolidation, amalgamation or otherwise) to all or substantially all the business and/or assets of the Company, by agreement in writing in form and substance reasonably satisfactory to the Executive, absolutely and unconditionally
to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. As used in this Agreement, the “Company” shall
mean the Company as hereinbefore defined and any successor or assign to the business and/or assets of the Company as aforesaid which executes and delivers the agreement provided for in this Section 20(c) or which otherwise becomes bound by all
the terms and provisions of this Agreement by operation of law. 
 (d) Nothing in this Agreement, express or implied, is intended to or
shall confer upon any person other than the parties hereto and their respective heirs, legal representatives, successors and permitted assigns, any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement. 

21. Miscellaneous. 
 (a)
Amendment. This Agreement may not be modified or amended in any respect except by an instrument in writing signed by the party against whom such modification or amendment is sought to be enforced. No person, other than pursuant to a
resolution of the Board or a committee thereof, shall have authority on behalf of the Company to agree to modify, amend or waive any provision of this Agreement or anything in reference thereto. 

(b) Waiver. Any term or condition of this Agreement may be waived at any time by the party hereto which is entitled to have the benefit
thereof, but such waiver shall only be effective if evidenced by a writing signed by such party, and a waiver on one occasion shall not be deemed to be a waiver of the same or any other type of breach on a future occasion. No failure or delay by a
party hereto in exercising any right or power hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right or power. 

(c) Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign
taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 (d) Nonalienation of Benefits. The
Executive shall not have any right to pledge, hypothecate, anticipate or in any way create a lien upon any payments or other benefits provided under this Agreement; and no benefits payable hereunder shall be assignable in anticipation of payment
either by voluntary or involuntary acts, or by operation of law, except by will or pursuant to the laws of descent and distribution. 
 (e)
Severability. If any provision of this Agreement is held to be invalid or unenforceable, (i) this Agreement shall be considered divisible, (ii) such provision shall be deemed inoperative to the extent it is deemed invalid or
unenforceable, and (iii) in all other respects this Agreement shall remain in full force and effect; provided, however, that if any such provision may be made valid or enforceable by limitation thereof, then such provision shall
be deemed to be so limited and shall be valid and/or enforceable to the maximum extent permitted by applicable law. 

  
 -19- 

 (f) Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto concerning the subject matter hereof, and from and after the Effective Date, this Agreement shall supersede the Original Agreement and any other prior agreement or understanding, both written and oral, between the parties with respect
to such subject matter, including, but not limited to the Original Agreement. 
 (g) Captions. The captions herein are inserted for
convenience of reference only, do not constitute a part of this Agreement, and shall not affect in any manner the meaning or interpretation of this Agreement. 

(h) References. All references in this Agreement to Sections, subsections and other subdivisions refer to the Sections, subsections and
other subdivisions of this Agreement unless provided otherwise. The words “this Agreement”, “herein”, “hereof”, “hereby”, “hereunder” and words of similar import refer to this Agreement as a whole
and not to any particular subdivision unless so limited. Whenever the words “include”, “includes” and “including” are used in this Agreement, such words shall be deemed to be followed by the words “without
limitation”. Words in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires. 

[Execution Page Follows] 

  
 -20- 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its
behalf by its duly authorized officer, and the Executive has executed this Agreement, as of the date first above set forth. 
  

	
	DRIL-QUIP, INC.
	
	/s/ James C. Webster
	Name: James C. Webster
	Title: Vice President and General Counsel
	
	EXECUTIVE
	
	/s/ Jeffrey J. Bird
	Jeffrey J. Bird

  
 -21-Document

SHARED SERVICES AND COST SHARING AGREEMENT

This SHARED SERVICES AND COST SHARING AGREEMENT (collectively with the attached schedules incorporated herein, this “Agreement”) is effective as of January 1, 2020 (the “Effective Date”), and is made by and among the following:

(i)ATHENE EMPLOYEE SERVICES, LLC, an Iowa limited liability company (“AES”);

(ii)ATHENE ANNUITY AND LIFE COMPANY, an Iowa corporation (“AAIA”); 

(iii)P.L. ASSIGNED SERVICES, INC., a New York corporation (“PLAS”);

(iv)ATHENE ANNUITY & LIFE ASSURANCE COMPANY OF NEW YORK, a New York corporation (“AANY”); and

(v)ATHENE LIFE INSURANCE COMPANY OF NEW YORK, a New York corporation (“ALICNY”).

Each of AES, AAIA, PLAS, AANY, and ALICNY shall be referred to individually as a “Party” and collectively as the “Parties.” 

WHEREAS, each Party hereto is an affiliate of one another;

WHEREAS, AES and AAIA have certain personnel and/or resources which would be of value to the other Parties in connection with the performance of certain services relating to such Party’s business;

WHEREAS, each Party desires to utilize such personnel and/or resources to provide and/or receive services under the terms of this Agreement; and

WHEREAS, the Parties desire that other affiliates have the ability to become a Party hereto from time to time in the future.

NOW, THEREFORE, the Parties hereto, intending to be legally bound, agree as follows:

1.Services.

(a)The term “Service Provider” shall mean (i) AES, if AES is providing services to any of PLAS, AANY, and ALICNY, hereunder, or (ii) AAIA, if AAIA is providing services to any of PLAS, AANY, and ALICNY hereunder, in each case, as the context may warrant. The term “Service Recipient” shall mean any of PLAS, AANY, and ALICNY, in each case, as the context may warrant, receiving services from AES or AAIA.

(b)A Party may be both a Service Provider and a Service Recipient hereunder with respect to different services, and any services may be provided to one or more Parties hereunder. A Service Provider may provide services hereunder either directly or through its subsidiaries; provided, that any services provided through a Service Provider’s subsidiaries shall be subject to the provisions of Section 15 hereof, except that the Service Recipient’s consent shall not be required.

(c)Upon mutual agreement of a Service Recipient and a Service Provider, which need not be in writing, a Service Provider shall provide one or more of the services 

identified on Schedule A to such Service Recipient. Schedule A identifies which Services may be provided by which Service Provider, and such Schedule may be amended from time to time by mutual agreement of the Parties hereto.  The terms and conditions relating to any request for and provision of services under this Agreement shall be fair and reasonable.

(d)Each Service Provider agrees that in providing services hereunder, it shall use that degree of ordinary care and reasonable diligence that an experienced and qualified provider of similar services would use acting in like circumstances and experience in such matters and in accordance with the standards, practices, policies, procedures and guidelines it has established for its own business. Each Service Provider shall perform services according to such other standards and guidelines as may be mutually agreed upon by it and the Service Recipient. Each Service Provider shall comply with all laws, regulations, rules and orders applicable to, and where applicable co-operate with any regulator (including providing access to data and records) who has jurisdiction over, (i) the applicable Service Recipient with respect to the services provided hereunder and (ii) such Service Provider. Each Service Provider agrees to maintain sufficient facilities and trained personnel of the kind necessary to perform the services performed by it under this Agreement.

(e)In providing services hereunder which require the exercise of judgment by a Service Provider, such Service Provider shall perform such service in accordance with any standards and guidelines the Service Recipient develops and communicates to such Service Provider. In performing any services hereunder, each Service Provider shall at all times act in a manner reasonably calculated to be in, or not opposed to, the best interests of the applicable Service Recipient.  Service Recipients shall monitor the provision of Services annually for quality assurance.

(f)With respect to any underwriting functions and services that are performed for or provided to a Service Recipient by Service Provider pursuant to this Agreement, it is understood that (i) Service Provider shall perform such services in accordance with underwriting guidelines and procedures established by the Service Recipient from time to time and communicated in writing to Service Provider by Service Recipient; and (ii) the Service Recipient shall retain all final underwriting authority.  With respect to the collection of premiums, deposits and other remittances from policyholders (including payment of principal or interest on policy loans), Service Provider shall act in a fiduciary capacity with respect to such payments, hold such payments for the benefit of Service Recipient, and after the required processing of such payments, will immediately deposit such payments in one or more bank accounts established in the name of Service Recipient and subject to the control of officers of Service Recipient.  With respect to claims processing, (i) final decisions will be based upon guidelines and procedures established and approved by Service Recipient from time to time and communicated in writing to Service Provider by Service Recipient, and (ii) Service Recipient retains final approval authority on all claim payments.  Payment of claims shall be made using Service Recipient checks.  In performing claim services for Service Recipient pursuant to this Agreement, Service Provider shall obtain and maintain all necessary licenses and permits required in order to comply with applicable laws and regulation, including an Independent Adjuster’s License.

(g)The performance of services by a Service Provider for any Service Recipient pursuant to this Agreement shall in no way impair the absolute control of the business and operations of such Service Provider or such Service Recipient by their respective Boards of Directors. Each Service Provider shall act hereunder so as to assure the separate operating and corporate identity of all Service Recipients. The business and operations of the Service Recipients shall at all times be subject to the direction and control of their respective management and Boards of Directors.

(h)Each Service Provider agrees that any and all personal contact or communication, both oral and written, with any Service Recipient’s policyholders, insureds, and beneficiaries will be done in the name of and on behalf of such Service Recipient. Further, each Service Provider agrees to use such Service Recipient’s letterhead for all such written communications. Service Provider further agrees that if any of its employees who have direct contact with AANY or ALICNY policyholders, insureds, beneficiaries or applicants, perform such services from a location outside the State of New York, Service Provider will establish and maintain a toll-free telephone number for use by AANY and ALICNY policyholders, insureds, beneficiaries and applicants.  

(i)Notwithstanding anything to the contrary in this Agreement, in providing Services, no party shall have liability hereunder except for its willful misconduct or gross negligence.

2.Service Fees.

(a)Each Service Recipient reasonably agrees to reimburse a Service Provider for services and facilities (except aircraft services described in (b) below) provided by such Service Provider to such Service Recipient pursuant to this Agreement at cost.  The charge to a Service Recipient for such services and facilities shall include all direct and indirectly allocable expenses.

(b)For the aircraft services described on Schedule A, each Service Recipient agrees to reimburse AES a reasonable hourly rate per person equivalent to the charter rates charged to third parties plus a reasonable booking fee per person per flight booked.  The effective current hourly rate and administrative fees are available from the finance department at AES.

(c)The methods for allocating expenses to a Service Recipient shall be determined according to (i) the time actually incurred by or on behalf of the Service Provider, (ii) the usage of assets by the Service Recipient, (iii) the proportion of revenue shared between the Parties under this or any related contract to which the services or expenses are related, or (iv) under any other reasonable method supported by a transfer pricing study, and in accordance with requirements prescribed in applicable insurance laws and regulations, including 11 New York Code of Rules and Regulations 91 Section 91.1 (Insurance Regulation No. 33).  Such methods shall be modified and adjusted by mutual written agreement where necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by a Service Provider for the benefit of a Service Recipient.

(d)If a Service Recipient reasonably determines that the services performed hereunder are not satisfactory or that the fees charged are not in accordance with the terms and conditions of this Agreement, such Service Recipient and such Service Provider agree to negotiate to resolve such dispute in good faith and during such negotiations is hereby authorized to withhold payment for such service until the matter in dispute is resolved or the fees charged are substantiated or adjusted appropriately. Adjustments for errors and a final settlement shall be made no more than sixty (60) days after this Agreement expires or terminates.

3.Accounting and Payments. Each Service Provider shall submit to each Service Recipient, within thirty (30) days following the end of each month (or such shorter period as the Parties may agree), a written statement, general ledger records, or such other documentation as agreed upon between the Parties evidencing the amount estimated to be owed by such Service Recipient for services and the use of facilities pursuant to this Agreement in that month (or such other period as the Parties may agree), and each Service Recipient shall pay to any Service Provider within fifteen (15) days following receipt of such written statement the amount set forth 

in the statement. Within sixty (60) days following the end of each calendar quarter, each Service Provider shall submit to each Service Recipient a statement of actual apportioned expenses for the prior calendar quarter showing the basis for the apportionment of each item. Any Service Recipient may request a written statement from a Service Provider setting forth, in reasonable detail, the nature of the services rendered or expenses incurred and other relevant information to support the charge. Any difference, whether an underpayment or overpayment, between the amount of the estimated apportioned expenses paid by a Service Recipient and the amount of the actual apportioned expenses shall be paid to the Service Provider or the Service Recipient, as applicable, within fifteen (15) days following receipt of such statement of actual apportioned expenses.  All settlements shall be in compliance with the NAIC Accounting Practices and Procedures Manual.  No Service Recipient shall advance funds to a Service Provider except to pay for Services as defined in this Agreement.

4.Capacity of Personnel; Status of Facilities; Shared Employees.

(a)Whenever any Service Provider utilizes its personnel to perform services for a Service Recipient pursuant to this Agreement, such personnel shall at all times remain employees or independent contractors (or employees of independent contractors) of such Service Provider, subject solely to its direction and control. No Service Recipient shall have liability to any such persons for their welfare, salaries, fringe benefits, legally required employer contributions or tax obligations, except as provided in Section 4(c) hereof.

(b)No facility of any Service Provider used in performing services for, or subject to use by, any Service Recipient shall be deemed to be transferred, assigned, conveyed or leased by performance or use pursuant to this Agreement.

(c)To the extent that any person employed by a Party hereto serves as an officer or employee of any other Party hereto (each, a “Shared Employee”), a proportionate share of the direct and indirect salary and benefits of each such person (including, but not limited to, welfare, salaries, fringe benefits, legally required employer contributions and tax obligations) shall be allocated based on an estimate of time spent performing services on behalf of each such Party, and the charges for any such services, and accounting and payment therefor, shall be as provided for services otherwise performed under this Agreement.

5.Third-Party Contracts. A Service Provider may have existing relationships or agreements pursuant to which third parties provide services or equipment to it. Any Service Recipient may find that it is economically more beneficial to obtain such services or equipment from the third party under the terms and conditions available to such Service Provider. In that event, a Service Recipient may request that such Service Provider obtain certain services or equipment for the Service Recipient. In these instances, the actual costs incurred by the Service Provider, without any mark-up, will be accumulated and billed to the Service Recipient on a monthly basis in accordance with Section 3, or at such other frequencies as the Parties may agree.  The Service Recipient shall, to the extent required by the Service Provider, comply with requirements that may be placed on Service Provider in connection with the sharing of such service (for instance, the Service Recipient shall, for the benefit of the Service Provider, comply with confidentiality provisions that may be applicable on the Service Provider or the Service Recipient in connection with services shared by the Service Provider).  The Service Provider shall not have liability to the Service Recipient for such third parties.

Nothing herein shall be deemed to grant a Service Provider an exclusive right to provide services to any Service Recipient, and all Service Recipients retain the right to contract with any third party, affiliated or unaffiliated, for the performance of services or for the use of facilities that are the same as or similar to those being provided to a Service Recipient pursuant to this Agreement.  A Service Provider, with a Service Recipient’s consent, shall have the right to subcontract with any third party, affiliated or unaffiliated, for the performance of services requested by such Service Recipient; provided, that the Service Provider shall remain responsible for the 

performance of services by any such subcontractors in accordance with the terms of this Agreement; and provided, further, that the charges for any such services subcontracted to an affiliate shall be determined on the basis described in Section 2.  With respect to significant services that are subcontracted, this Agreement shall be amended and filed with the New York State Department of Financial Services for appointing/changing a subcontractor or changing subcontractor services.

6.Term. This Agreement shall have an initial term of one year, starting on the Effective Date, and shall automatically renew for successive one-year terms unless terminated as provided in accordance with Section 7 below.

7.Termination and Indemnification.

(a)Any Party may terminate this Agreement as to itself at any time and for any reason by providing the other Parties at least thirty (30) days’ prior written notice of its desired termination date; provided, however, that (i) any Party hereto may terminate this Agreement as to itself immediately upon the insolvency of another Party or the appointment of a conservator, liquidator or statutory successor of another Party, except as described in Section 21,  and (ii) a non-breaching Party may terminate this Agreement as to itself upon any material breach of any material term of this Agreement by another Party, where such other Party fails to cure such breach within fifteen (15) days following receipt of written notice thereof.

(b)Any notice of termination shall be sent to all Parties hereto, and a Party who is an insurance company shall also send the notice to its domiciliary insurance regulator; provided, that this Agreement shall remain in full force and effect with respect to such other Parties unless and until any or all of such other Parties shall elect to terminate this Agreement.

(c)Upon any termination of this Agreement and for a period of up to six (6) months following termination, all Service Providers shall provide such services as may be reasonably requested by any Service Recipient to provide for the orderly transition of the services provided hereunder to another service provider designated by such Service Recipient. Such Service Recipient shall reimburse each Service Provider at cost for the provision of any such transition services. 

(d)Any Service Recipient, upon ninety (90) days’ prior written notice to any Service Provider, may terminate any one or more of the services to be furnished hereunder by such Service Provider to such Service Recipient. Any such partial termination with respect to specific services shall not be deemed to terminate this Agreement in its entirety or to affect the remaining Parties.

(e)The Service Provider shall indemnify and hold harmless each Service Recipient, for and against any and all claims or losses arising out of or relating to the gross negligence or willful misconduct of the Service Provider. 

8.Offset. Any two (2) Parties may offset any amounts due one another from amounts that are to be paid one another under this Agreement.

9.Governing Law. The laws of the state of New York (without giving effect to its conflicts of law principles) govern all matters arising out of this Agreement.

10.Regulator Approval. This Agreement is subject to the prior approval or nondisapproval, as applicable, of the domiciliary insurance regulator of each Party which is an insurance company.

11.Amendments. This Agreement may not be altered or amended except by written agreement signed by all Parties and with the prior approval of the domiciliary insurance 

regulator of each Party which is an insurance company. Notwithstanding the foregoing, the Parties agree that other affiliates may become Parties hereto from time to time in the future without the necessity of an amendment by executing a joinder agreement agreeing to be bound by the terms and conditions of this Agreement. Copies of any such joinder agreement shall be provided to all other Parties to this Agreement.

12.Books and Records.

(a)All records, books and files established and maintained by any Service Provider by reason of its respective performance of services under this Agreement, which absent this Agreement would have been held by a Service Recipient, shall be deemed to be and shall remain the property of such Service Recipient and shall be maintained in accordance with applicable law and regulation applicable to such Service Provider, unless such Service Recipient notifies the Service Provider in writing that such records must be maintained in a particular manner, which the Service Provider shall use commercially reasonable efforts to do at the expense of the Service Recipient. Such records shall, upon reasonable request of Service Recipient, be available, during normal business hours, for inspection by such Service Recipient, anyone authorized by such Service Recipient, and any governmental agency that has regulatory authority over a Service Recipient’s business activities. Copies of such records, books and files shall, at such Service Recipient’s expense, be delivered to a Service Recipient promptly on written demand.  Copies of all such records, books and files shall, at the applicable Service Recipient’s expense, be promptly transferred to the applicable Service Recipient by the applicable Service Provider upon termination of this Agreement.

(b)All Service Providers and Service Recipients shall maintain their own books, accounts and records in such a way as to disclose clearly and accurately the nature and detail of the transactions between them, including such accounting information as is necessary to support the reasonableness of charges under this Agreement, and such additional information as a Service Recipient may reasonably request for purposes of its internal book-keeping and accounting operations. Each Service Provider shall keep such books, records and accounts insofar as they pertain to the computation of charges hereunder available for audit, inspection and copying by a Service Recipient and persons authorized by a Service Recipient or any governmental agency having jurisdiction over a Service Recipient upon reasonable request during all reasonable business hours.  Service Provider shall maintain back-up records, which will be made available to Service Provider as requested in the event of a disaster.  AES is part of the larger Athene business continuity and disaster recovery plan which includes a disaster recovery site.

(c)Each Service Recipient and persons authorized by it or any governmental agency having jurisdiction over a Service Recipient shall have the right, at a Service Recipient’s expense, to conduct an audit of the relevant books, records and accounts of a Service Provider upon giving reasonable notice of its intent to conduct such an audit. In the event of such audit, the Service Provider shall give to the party requesting the audit reasonable cooperation and access to all books, records and accounts necessary to audit during normal business hours.

(d)All Service Providers shall maintain back-up records, which will be available to Service Recipients in the event of a disaster.

13.Accounting Services.

(a)All records shall be maintained in accordance with 11 New York Code of Rules and Regulations 243 (Insurance Regulation No. 152).  In addition to the foregoing, a computer terminal, which is linked to the electronic system that generates the electronic records that constitute a Service Recipient’s books of account, shall be kept and maintained at a Service Recipient’s principal office, and for PLAS, AANY and ALICNY, at their principal office in New York. During all normal business hours, there shall be ready availability and easy access through 

such terminal (either directly by personnel of the domiciliary insurance regulator of such Service Recipient that is an insurance company, including the New York State Department of Financial Services personnel, or indirectly with the aid of such Service Recipient’s employees) to the electronic media used to maintain the records comprising a Service Recipient’s books of account. The electronic records shall be in a readable form.

(b)Each Service Provider shall, at the expense of the applicable Service Recipient, use commercially reasonable efforts to maintain format integrity and compatibility of the electronic records that constitute a Service Recipient’s books of account. If the electronic system that created such records is to be replaced by a system with which the records would be incompatible, each Service Provider shall, at the expense of the applicable Service Recipient, use commercially reasonable efforts to convert such pre-existing records to a format that is compatible with the new system.

(c)Each Service Provider shall maintain backup (in hard copy or another durable medium, as long as the means to access the durable medium is also maintained at a Service Recipient’s principal office) of the records constituting a Service Recipient’s books of account. Upon written and reasonable request of such Service Recipient and at its sole expense, such backup shall be forwarded to the respective Service Recipients.

(d)All fund and invested assets of the Service Recipient are the exclusive property of the Service Recipient, held for the benefit of the Service Recipient, and are subject to the control of the Service Recipient.

14.Arbitration.

(a)Any controversy arising out of or in connection with this Agreement shall be settled by arbitration in the State of New York or any other mutually agreeable location in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect, and any award rendered thereon shall be enforceable in any court of competent jurisdiction. Notwithstanding Section 9, any such arbitration and this Section 14 shall be governed by Title 9 of the U.S. Code (Arbitration).

(b)The arbitration shall be conducted by three (3) independent and impartial arbitrators, one to be chosen by the applicable Service Provider(s), one to be chosen by the applicable Service Recipient(s) and the third by the two so chosen, all of whom shall be executive officers or retired officers of life insurance companies other than the Parties or any of their respective affiliates or subsidiaries.

(c)Unless the arbitrators decide otherwise, each Party will bear the expense of its own arbitration activities, including any outside attorney and witness fees, the Service Provider(s) and the Service Recipient(s), respectively, shall jointly bear the expense of their respective appointed arbitrator and all Parties to the arbitration will jointly bear the expense of the third arbitrator.

15.Safeguarding Customer Information.

(a)In providing services hereunder, each Party shall implement appropriate security measures designed to meet the objectives of applicable insurance laws and regulations, including: (i) ensuring the confidentiality, security and integrity of the other Parties’ respective information regarding its clients’ and applicants’ nonpublic confidential information (“Customer Information”); (ii) protecting against anticipated threats or hazards to the security or integrity of Customer Information; and (iii) protecting against unauthorized access to or use of Customer Information.  Each Service Provider shall adjust its information security program at the request of a Service Recipient for any relevant changes dictated by a Service Recipient’s assessments of risk around its Customer Information and customer information systems. Each Party agrees that 

during the term of this Agreement and thereafter, it shall not use, or permit any person or entity access to, any Customer Information except as permitted in connection with the performance of services hereunder. Each Party acknowledges that it shall be permitted to disclose Customer Information only to its employees, subcontractors, consultants and agents who have a need to know such information or otherwise in connection with its performance of its duties hereunder. In addition, a Party may disclose Customer Information if such disclosure is required by law or upon order of any competent court or law enforcement agency.

(b)Each Party shall monitor from time to time its Customer Information systems for security breaches, violations and suspicious activity relating to the Customer Information. If a breach, violation or suspicious activity affecting the Customer Information is detected, the Party shall (i) notify the affected Parties promptly upon knowledge of such breach, violation or suspicious activity and (ii) fix or patch the security problem within a reasonable period of time.

(c)For a period of seven (7) years after the termination or expiration of this Agreement, each Party will maintain, and will provide the other Parties reasonable access to, system records and logs regarding the use of the Customer Information systems as contemplated by this Agreement.  Each Party shall have the right to review and inspect such records upon thirty (30) days’ advance written notice and during reasonable business hours. Inspections permitted under this Section 15(c) shall occur no more frequently than once per year and shall be conducted under the supervision of the inspecting Party.

(d)Subject to a Party’s own security requirements, each Party shall allow the other Parties to conduct, at such other Parties’ expense, reasonable inspections of the Customer Information systems upon thirty (30) days’ prior written notice and during reasonable business hours. Inspections permitted under this Section 15(d) shall occur no more frequently than once per year.

(e)Confirming evidence that a Service Provider has satisfied its obligations under this Section 15 shall be made available, during normal business hours, for inspection by the applicable Service Recipient, anyone authorized by such Service Recipient and any governmental agency that has regulatory authority over such Service Recipient’s business activities.

16.Assignment. This Agreement may not be assigned by any Party hereto.  This Agreement shall be binding upon, and shall inure to the benefit of, the Parties and their respective successors and permitted assigns.  

17.Notices. All notices, statements or requests provided for in this Agreement shall be in writing and shall be deemed to have been given when delivered by hand or when sent by certified or registered mail, postage prepaid or overnight courier service or upon confirmation of transmission if sent by telecopier or e-mail in accordance with the notice details set forth on Schedule B.

18.Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute only one instrument.

19.Entire Agreement. This Agreement, together with any attached schedules, constitutes the sole and entire agreement between the Parties relating to the subject matter hereof.

20.No Waiver. No delay or failure by any Party to exercise any of its rights or remedies hereunder shall operate as a waiver thereof.

21.Provisions in the Event of Insurance Company Receivership.  If one of the Parties that is an insurance company is placed in receivership or seized by the insurance commissioner under the relevant state’s receivership act, then: (1) all of the rights of the insurance company under this Agreement shall extended to the receiver or commissioner; and (2) all Service Providers will immediately make available to the receiver or the commissioner all books and records, and the Service Providers will turn over such books and records to the receiver or commission immediately upon request.  No Party shall have an automatic right to terminate this Agreement upon the receivership of an insurance company.  All other Parties will continue to maintain any systems, programs or other infrastructure notwithstanding the receivership of an insurance company, and the Parties will make those systems available to the receiver or commissioner for so long as the Parties continue to receive timely payment for services rendered and costs expended. 

[SIGNATURE PAGE FOLLOWS.]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized officers as of the date set forth in the introductory paragraph.

Athene Employee Services, LLC

                          /s/ Travis Tweed                
                        Name: Travis Tweed
                        Title: VP, Controller and Treasurer

Athene Annuity and Life Company

                          /s/ Grant Kvalheim                
                        Name: Grant Kvalheim
                        Title: CEO & President

P.L. Assigned Services, Inc.

                          /s/ Blaine Doerrfeld                
                        Name: Blaine Doerrfeld
                        Title:  President and Secretary

Athene Annuity & Life Assurance Company 
of New York

                          /s/ Travis Tweed                
                        Name: Travis Tweed
                        Title: VP, Controller and Treasurer

Athene Life Insurance Company of New 
York

                          /s/ Grant Kvalheim                
                        Name: Grant Kvalheim
                        Title:  CEO & President

Schedule A
SERVICES AVAILABLE FROM SERVICE PROVIDERS
1.Producer Management.  
Service Provider: AES
Service Recipients: AANY, ALICNY
A full range of services relating to master general agents, general agents, agents, brokers and other producers (collectively, “Producers”), which include, without limitation:  (a) compliance investigations of Producers and Producer practices; (b) developing alternative compensation, benefits and financing plans for Producers; (c) supporting Producer communications; and (d) designing and implementing training programs, including training programs related to product features, insurance industry developments and legal compliance requirements.
Service Provider: AAIA
Service Recipients: AANY, ALICNY
A full range of services relating to master general agents, general agents, agents, brokers and other producers (collectively, “Producers”), which include, without limitation:  (a) due diligence investigations of Producers for appointment; (b) administering Producer licenses, contracts and compensation and maintaining a computer database reporting license and contract status; (c) providing Producer payroll services, including the calculation of commissions, generating electronic fund transfers and delivering checks; and (d) supporting Producer communications.

2.Reinsurance and Underwriting.  
Service Provider: AES
Service Recipients: AANY, ALICNY
Reinsurance and underwriting services, which include, without limitation:  (a) provide advice with respect to reinsurance retention limits; (b) provide advice with respect to the negotiation of reinsurance treaties; (c) provide advice and support with respect to the management of reinsurer relationships; (d) provide advice and assist in the development of appropriate underwriting guidelines; (e) review applications for conformity with underwriting criteria; (f) perform all underwriting pertaining to such applications; (g) identifying and engaging third party service providers (including, without limitation, fraud prevention and laboratories) utilized in the underwriting process; and (h) designate as ready for issue all policies and contracts which fall within each Service Recipient’s underwriting criteria.  Each Service Recipient expressly understands that all underwriting decisions ultimately are the responsibility and subject to the control of such Service Recipient and its Board of Directors and management.
3.Human Resources.  
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY

A full range of human resource services, which include, without limitation, corporate compensation, benefits, management development, payroll and general services.  The corporate compensation function involves establishing compensation levels, administering benefit plans, and implementing salary programs.  The benefits function revolves around policy setting, negotiating with vendors, administering retiree benefits and pay, and administering 401(k) and benefit programs.  Management development involves the design and development of management training programs, internship programs, and corporate orientation.  The payroll function includes account reconciliation, preparation of W-2s, preparation of paychecks, and a variety of other activities.  General services include employee relations, recruiting, applicant review, hiring, orientation, and performance management.
4.Transportation.  
Service Provider: AES 
Service Recipients: PLAS, AANY, ALICNY
A full range of transportation services, which include, without limitation, arranging for transportation and Service Recipient’s usage of aircraft in which Service Provider owns a partial interest, if any.  The aircraft are utilized for transporting personnel to various locations to conduct various business initiatives and operations.
5.Legal.  
Service Provider: AES 
Service Recipients: PLAS, AANY, ALICNY
A full range of legal services, which include, without limitation:  (a) corporate governance; (b) contract structuring and review, including agent contracts and policy forms; (c) investment review; (d) litigation support, including agent and policyowner litigation; and (e) regulatory and market conduct compliance.  In connection with the handling, defense and settlement of any pending or threatened litigation or other claims involving more than one Party hereto (or the officers, directors and/or the employees of one or more Party hereto), the Service Provider may allocate among such Parties (i) any of the Service Provider’s service fees relating thereto, (ii) the fees and expenses of outside counsel and other experts, (iii) any settlement payments or advances of or reimbursements of costs or expenses made or to be made in connection with any indemnification relating thereto, and (iv) any settlement payments made or to be made, in such proportion as is appropriate to reflect the relative benefit received by each Party in connection with the underlying matter, as well as the relative fault of each Party in connection with such matter, taking into account any available insurance or rights to contractual indemnification from third parties.
6.Facilities Management.  
Service Provider: AAIA 
Service Recipients: AES, PLAS, AANY, ALICNY
A full range of facilities management services, which include, without limitation, managing all of the facilities that Service Recipients occupy.  This includes responsibility for planning, managing and administering leases, workspace allocations and designs, leasehold improvements, internal moves, and maintenance and security as well as coordinating the corporate conference center.

7.Tax.  
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY
A full range of tax services, which include, without limitation:  (a) planning and development of tax strategies; (b) research of the tax impact for transactions; (c) computation of tax accruals and expenses for financial reporting; (d) preparation and filing of federal, state and local tax returns; and (e) support for tax authorities’ examinations.
8.Audit Services.  
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY
A full range of audit services, which include, without limitation:  (a) internal audit activities, such as internal control, EDP and operational reviews; (b) coordination and assistance with external audits and regulatory examinations; and (c) compliance with rules and regulations surrounding accounting controls including applicable Model Audit Rules and Sarbanes-Oxley.
9.Communications.  
Service Provider: AES 
Service Recipients: PLAS, AANY, ALICNY
A full range of communication services, which include, without limitation:  (a) the preparation and publication of external communications, human resource recruiting materials, and training materials; (b) establishing and maintaining internal and external web sites; and (c) all corporate communication with employees.

10.Printing and Supplies.  
Service Provider: AES 
Service Recipients: PLAS, AANY, ALICNY, 
A full range of printing services and management of externally generated materials and mainframe computer reports, and a full range of supply and supplies management services, which include procurement of office and related supplies as well as promotional items for agents, customers, and employees.  
Service Provider: AAIA 
Service Recipients: PLAS, AANY, ALICNY
A full range of printing services, which include, without limitation, internally generated materials and mainframe computer reports.
11.Telecommunications.  
Service Provider: AES 

Service Recipients: PLAS, AANY, ALICNY, 
A full range of telecommunications services, which include, without limitation:  (a) local and long-distance telephone service and cellular phone and “blackberry” service; (b) analyst/technician services; (c) clerical/switchboard assistance; and (d) installation services.  
12.Mail and Delivery.  
Service Provider: AAIA 
Service Recipients: PLAS, AANY, ALICNY, 
A full range of mail and delivery services, which include, without limitation:  (a) collecting and sorting mail; (b) scanning, imaging, and indexing insurance policy information; (c) managing relationships with and procuring services of private, third party delivery services; and (d) other related activities.  
13.Information Technology.  
Service Provider:  AES
Service Recipients: PLAS, AANY, ALICNY,  
A range of information technology services, which include, without limitation:  (a) administering, maintaining and operating policy administration and other operating systems (including, without limitation, any systems that support the provision of any other services listed in this Schedule A); (b) providing support for personal computer and network applications and users (including, without limitation, maintaining network security); and (c) offering computer programming services on a project basis.  In addition, Service Recipients may receive certain IT services from Rackspace International GmbH or its affiliates pursuant to the Global Services Agreement attached as Exhibit A-1 hereto.
14.Executive/ Strategic and Operations Management.  
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY
A full range of management services, which include, without limitation:  (a) strategic management services, including development and implementation of corporate-wide and line of business strategic plans; and (b) oversight of operations management services, including  monitoring and analysis of corporatewide, line of business and individual affiliate processes and results.
Service Provider: AAIA
Service Recipients: PLAS, AANY, ALICNY
A full range of management services, which include, without limitation, operations management services, including  monitoring and analysis of corporatewide, line of business and individual affiliate processes and results.
15.Records.  
Service Provider:  AES

Service Recipients: PLAS, AANY, ALICNY
A full range of electronic record services, which include, without limitation, archiving and maintaining documents and records, and identifying and engaging third party service providers in connection with the same.
Service Provider:  AAIA
Service Recipients: PLAS, AANY, ALICNY
A full range of record services, which include, without limitation, imaging, archiving and maintaining documents and records and also microfilming and storing policyholder information.
16.Sales and Market Development.  
Service Provider: AES
Service Recipients: AANY, ALICNY
A full range of sales and market development services, which include, without limitation:  (a) advanced sales support; (b) convention planning and cost; (c) marketing communications and advertising; and (d) education and training.
17.Compliance.  
Service Provider: AES 
Service Recipients: PLAS, AANY, ALICNY
A full range of compliance services, which include, without limitation:  (a) establishment, implementation, and monitoring of consistent sales practices through agent training, education, and standardization of forms and illustrations to comply with regulatory requirements and corporate objectives; (b) logging, researching, responding to and monitoring customer complaints; (c) logging, researching and responding to requests, inquiries and other correspondence from regulatory authorities; (d) managing market conduct and other regulatory examinations; (e) obtaining and maintaining required licenses; and (f) creating and administering anti-money laundering and privacy programs.
18.Administration Services.  
Service Provider: AAIA
Service Recipients: AES, PLAS, AANY, ALICNY, 
A full range of administrative services, which include, without limitation, administrative support for policy issuance, maintenance, and terminations.  Included within these services are the following:  (a) receiving and processing applications, amendments and riders; (b) generating physical policies, contracts, amendments and riders; (c) customer billing and maintaining and updating customer payment records; (d) responding to customer inquiries; (e) administering requested policy or contract modifications consistent with applicable underwriting guidelines; (f) claims processing (contestable and non-contestable) and agency services; and (g) paying benefits.
19.Product Management.  

Service Provider: AES
Service Recipients: AANY, ALICNY
A full range of product management services, which include, without limitation:  (a) product development and design; (b) product performance monitoring; (c) modeling analysis; (d) pricing determination; (e) actuarial support of reinsurance programs; (f) illustration capabilities; and (g) support and policy filings for new and existing policies.  
20.Actuarial and Corporate Valuation.  
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY
A full range of actuarial and corporate valuation services, which include, without limitation:  (a) actuarial support for the calculation of the amortization of deferred policy acquisition costs and acquired value of in-force; (b) actuarial analysis of financial reporting results; (c) financial reporting assistance; (d) financial management and planning activities; (e) expense analysis; (f) product profitability analysis; (g) cash flow testing; and (h) policy reserve establishment. 
21.Financial Services and Accounting.  
Service Provider: AES 
Service Recipients: PLAS, AANY, ALICNY
A full range of financial services, which include, without limitation:  (a) general, statutory and line of business accounting, and related financial reporting and filings; (b) reinsurance accounting and administration of nonaffiliated third party reinsurance agreements; (c) financial administration of incentive compensation programs; (d) analysis of actual to planned and historic statutory financial results; (e) investment accounting; (f) implementation, management and oversight of accounting systems and operations; (g) strategic financial services, including (i) budgeting, (ii) development and implementation of corporate-wide and line of business financial plans, (iii) financial analysis and (iv) monitoring and analysis of corporate-wide, line of business and individual affiliate financial results and profitability, including business intelligence and detailed sales reporting and analysis; and (h) services relating to maintenance of ratings, which include, without limitation, production of information for rating agencies on a periodic and ad hoc basis and modeling of assets and liabilities based on rating agency models and criteria.
22.Accounts Payable and Treasury.  
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY
A full range of accounts payable and treasury services, which include, without limitation: (a) cash and liquidity management, including investments in short term cash equivalents; (b) cash planning, modeling and projections; (c) coordination between investment, liability and executive teams for cash requirements; (d) implementation and management of short term cash financing facilities; (e) proper planning in connection with processing accounts payables and other third party liabilities; and (f) opening and maintenance of bank accounts.

AES shall also serve as a Cash Manager to handle the collection and/or payment of funds on behalf of Service Recipients.  Cash management services shall only apply to amounts equal to or less than 3% of the Service Recipient’s respective admitted assets.  All intercompany payable and receivables created as part of the cash management services shall be settled within thirty (30) days from the date of establishment.  If a Party is unable to settle intercompany payables and receivables in such time, the Parties may mutually agree to delay settlement until a date agreed upon by the Parties, but not later than ninety (90) days after the payable and corresponding receivable are established.
23.Mergers, Acquisitions and Divestitures. 
Service Provider:  AES
Service Recipients: PLAS, AANY, ALICNY
A full range of corporate development services relating to mergers, acquisitions and divestiture activities, which include, without limitation, strategic, financial, legal and management activities related to the potential acquisition of, or mergers with, target companies or sales of existing companies or lines of business.

24.Risk Management.  
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY
A full range of risk management services, which include, without limitation, identifying and managing potential market, financial, legal and other risks relating to assets, liabilities, operations, the applicable regulatory environment and other aspects of the business, including the modeling and hedging of such risks along with the probabilities of occurrence, and asset-liability matching and management. 
25.Shareholder Activities. 
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY
A full range of services relating to shareholder activities, which include, without limitation, capital raising and financial reporting and preparation and administration of shareholder meetings.
26.Aircraft Services. 
Service Provider: AES
Service Recipients: PLAS, AANY, ALICNY, 
A full range of air charter travel services, which include, without limitation, booking for travel, flight amenities, and other standard charter costs.

Schedule B

NOTICE DETAILS

Athene Employee Services, LLC
7700 Mills Civic Parkway
West Des Moines, IA 50266
Attention:  Blaine Doerrfeld
(515) 342-2376
legal@athene.com

Athene Annuity and Life Company
7700 Mills Civic Parkway
West Des Moines, IA 50266
Attention:  Blaine Doerrfeld
(515) 342-2376
legal@athene.com

P.L. Assigned Services, Inc.
7700 Mills Civic Parkway
West Des Moines, IA 50266
Attention:  Blaine Doerrfeld
(515) 342-2376
legal@athene.com

Athene Annuity & Life Assurance Company of New York
7700 Mills Civic Parkway
West Des Moines, IA 50266
Attention:  Blaine Doerrfeld
(515) 342-2376
legal@athene.com

Athene Life Insurance Company of New York
7700 Mills Civic Parkway
West Des Moines, IA 50266
Attention:  Blaine Doerrfeld
(515) 342-2376
legal@athene.com

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