Document:

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                                                                   EXHIBIT 10.10

                               GRANT PRIDECO, INC.
                         DEFERRED COMPENSATION PLAN FOR
                             NON-EMPLOYEE DIRECTORS

1.       DEFINITIONS. Certain words and phrases used in the Plan shall have the
meaning set forth below.

         (a) "ADMINISTRATIVE COMMITTEE" means a committee consisting of the duly
elected Corporate Secretary of the Company or, in the event the Secretary is a
Participant, one or more other persons appointed by the Board to administer the
Plan who are not Participants.

         (b) "BOARD" means the Board of Directors of the Company.

         (c) "COMPANY" means Grant Prideco, Inc., a Delaware corporation.

         (d) "COMPENSATION" means any retainer, meeting, committee fee or any
similar fee or compensation to which a Non-Employee Director is entitled for
services performed.

         (e) "CREDITED SHARES" means the shares of the Company's common stock
which, for accounting purposes only, are to be credited to a Participant's Share
Account from time to time. At no time shall Credited Shares be considered as
actual shares of common stock and a Participant shall have no rights as a
stockholder with respect to the Credited Shares.

         (f) "DEFERRED AMOUNT" means compensation deferred by a Participant
under the Plan together with all dividends or other amounts credited to a
Participant's Share Account pursuant to the provisions of the Plan, including
the value of any Credited Shares in the Participant's Share Account.

         (g) "MARKET VALUE" means with respect to the Company's common stock,
the mean between the high and low sales price per share (or average last bid and
asked price if applicable) of the Company's common stock, as reported by (i) the
automated quotation system of the National Association of Securities Dealers if
the Company's common stock is not then listed on a national securities exchange
or (ii) the principal national securities exchange on which the Company's common
stock is listed if the Company's common stock is so listed, in each case as of
the last trade day of each calendar month.

         (h) "NON-EMPLOYEE DIRECTOR" means any duly elected or appointed member
of the Board who is not an employee of the Company or of any subsidiary of the
Company.

         (i) "PARTICIPANT" means any Non-Employee Director who elects hereunder
to defer payment by the Company of a portion of the Compensation to which he or
she may be entitled.

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         (j) "PLAN" means the Grant Prideco, Inc. Deferred Compensation Plan for
Non-Employee Directors.

         (k) "SHARE ACCOUNT" means each account being administered for the
benefit of a Participant pursuant to Section 5 hereof.

2.       ADMINISTRATION.

         The Plan shall be administered by the Administrative Committee which
shall have the authority to construe and interpret the Plan, and to establish or
adopt rules, regulations and forms relating to the administration of the Plan.
The Administrative Committee shall have no authority to add to, delete from or
modify the terms of the Plan without the prior approval of the Board. All
actions and determinations by the Board with respect to the Plan shall be
required to be approved by a majority of the members thereof that are not then
participating in the Plan and who have not participated in the Plan during the
12-month period immediately preceding such action. Neither the Administrative
Committee nor any member of the Board shall be liable for any act or
determination made in good faith.

3.       ELECTION TO DEFER COMPENSATION.

         (a) Each Non-Employee Director may from time to time execute and
deliver to the Secretary an appropriate election form designating a portion of
the Non-Employee Director's future Compensation to be deferred under the Plan up
to a maximum of 7.5 percent of such Compensation. Any election shall be
applicable only to designated Compensation earned on or after the first day of
the month next following the month in which the election form is received by the
Administrative Committee and until the effective date of any revocation thereof.
Each such election must also irrevocably fix a date upon which the distributions
to the Participant under the Plan are to be made or begin as provided in Section
6 hereof, which date shall be a date not less than one year after the effective
date of the election.

         (b) In the event a Participant elects to defer a portion of his or her
Compensation under the Plan that is equal to or greater than five percent of his
or her Compensation, the Company shall, during the period during which the
Participant's Compensation is being deferred, make an additional credit to the
Participant's Share Account in an amount equal to the sum of (i) 7.5 percent of
the Participant's Compensation during the period during which the Participant's
Compensation is being deferred and (ii) a percentage of such Compensation equal
to the percentage of Compensation then being deferred by the Participant under
the Plan up to a maximum of 7.5 percent of the Participant's Compensation.

         (c) Each election to defer payment of Compensation by a Participant
shall continue in effect until revoked in writing upon not less than six months'
prior notice. No revocation shall be effective with respect to any Deferred
Amount credited with respect to Compensation prior to the effective date of the
new election. The amount, if any, of the Company's additional credit to a

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Participant's Share Account shall be adjusted effective as of the effective date
of each new election under the Plan by a Participant.

4.       ACCOUNTING.

         (a) The Company shall establish on its books appropriate bookkeeping
accounts for each Participant that will accurately reflect the Deferred Amount
of each Participant, including the number of Credited Shares in the
Participant's Share Account.

         (b) The Administrative Committee shall furnish each Participant with a
statement of the Deferred Amount, including the number of Credited Shares in the
Participant's Share Account, as of the end of each calendar year promptly
following the end of each calendar year.

5.       SHARE ACCOUNT.

         (a) Each Share Account shall consist of the cash amounts credited in
respect of a specific election to defer Compensation and the Credited Shares
into which prior credited amounts in the Share Account have been converted.
Except as provided in this Section 5, any cash amount credited to a Share
Account in a calendar month shall be converted, as of the end of that calendar
month, into the maximum whole number of Credited Shares that the amount so
credited would have purchased at the then Market Value.

         (b) As of the end of the calendar month during which the Company pays
any dividend on its common stock, either in cash or property other than its
common stock, each Share Account shall be credited with an amount equal to the
cash dividend per share or the cash value per share (as conclusively determined
by the Board) of the dividend in property other than its common stock, times the
Credited Shares in the Share Account on the dividend record date. The amount so
credited will be converted into the maximum whole number of Credited Shares that
the amount so credited could have purchased at the then Market Value. If the
Company pays any stock dividend, the Share Account shall be credited, as of the
end of the calendar month during which the stock dividend is paid, with a number
of Credited Shares equal to the number of shares or fraction of a share of
common stock paid per share of common stock as a dividend times the Credited
Shares in the Share Account on the dividend record date.

         (c) If any distribution other than a dividend is made on, or with
respect to, the Company's common stock, or in the event of a stock split,
recapitalization, merger, consolidation or other adjustment of the Company's
common stock, an appropriate adjustment shall be made to the number of Credited
Shares in a Share Account or to the cash credited to the Share Account on the
same basis as would have been made had the Credited Shares then been actually
issued and outstanding on the record date. The Board shall resolve any questions
as to the appropriateness of any such adjustment, including, but not limited to,
values and exchange ratios, and its determination shall be binding and
conclusive.

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         (d) All conversions into Credited Shares under Sections 5(a) through
(c) hereof shall be made in full shares. Amounts not so converted shall be
reflected as credited cash in a Share Account and shall be added to any
additional amounts of credited cash subsequently available for conversion;
provided, however, that in the event the Share Account reflects only credited
cash and interest thereon as provided in Section 5(e) hereof, the cash value of
such account shall not be converted into Credited Shares.

         (e) In the event the Company's common stock is at any time not publicly
traded so as to permit the determination of the Market Value of the Credited
Shares, such value shall be determined based on such factors and criteria as the
Board shall determine in good faith to be appropriate under the circumstances.
In the event the Company's common stock shall have been converted into or
exchanged for cash, securities (other than the Company's common stock) or other
property by virtue of a merger, consolidation, share exchange, reclassification
or other similar transaction, the value of such cash, securities and other
property received by the holders of the Company's common stock per share of
common stock shall be fixed as the cash value for each Credited Share in each
Participant's Share Account and such cash value shall be credited in such Share
Account and thereafter remain credited in the Participant's Share Account until
distributed and such account shall thereafter be credited by an amount equal to
the interest that would have been earned thereon at an annual rate equal to the
published prime lending rate at the beginning of each calendar quarter at Chase
Bank of Texas, National Association computed quarterly until the cash value of
such account shall be distributed as provided in Section 6 hereof. In such
event, no further deferrals of Compensation may be made by the Participant under
the Plan and no further additional credits shall be made by the Company as
provided in Section 3(b) hereof and any cash credits in the Share Account shall
not thereafter be converted into Credited Shares.

         (f) When a distribution is to commence pursuant to Section 6 hereof, a
stock certificate(s) representing the Credited Shares in the Share Account on
the last business day of the month preceding the date distribution is to
commence, and the amount of any credited cash in such Share Account will be
distributed as provided in Section 6 hereof, provided that all cash in the Share
Account shall be distributed at the time of the first distribution of stock
representing Crediting Shares.

6.       DISTRIBUTION.

         (a) Except in the case of the death of a Participant, distribution
shall commence as of the first day of the calendar quarter coincident with or
next following the date irrevocably specified by the Participant in the
applicable election to defer.

         (b) Except in the case of the death of the Participant, distribution of
a stock certificate representing the number of shares in the Share Account shall
be either in the form of a single distribution of shares or in approximately
equal quarterly installments over a period not to exceed ten years as
irrevocably selected by the Participant in the applicable election to defer. In
the event the Participant elects to receive the deferred compensation of shares
of stock through quarterly

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installments, the undistributed Credited Shares shall accrue dividends when paid
which will be connected to additional Credited Shares in accordance with Plan
terms. Cash in the Share Account representing fractured shares shall be
distributed at the time of the next distribution of Credited Shares.

         (c) In the event of the Participant's death prior to the date specified
for distribution of the Share Account, or after distribution to the Participant
has commenced but before full distribution has been made, the number of the
then-remaining shares in the Share Account shall be paid in a single
distribution to the beneficiary or contingent beneficiary designated in the
applicable election to defer, or to the estate of the deceased Participant if
there is no surviving beneficiary or contingent beneficiary. In either such
event, the single distribution shall be made as of the first day of the calendar
quarter following the Participant's date of death. A Participant may change the
beneficiary or contingent beneficiary from time to time with respect to any
election to defer by filing with the Administrative Committee a notice of change
of beneficiary. No change shall be effective unless received by the
Administrative Committee prior to the date of the Participant's death.

7.       MISCELLANEOUS.

         (a) The Board may amend or terminate the Plan at any time; provided,
however, (i) no amendment may be made that would accelerate or change the date
of distribution with respect to Compensation theretofore deferred and (ii) any
amendment or termination of the Plan shall not affect the rights of Participants
or beneficiaries to payment, in accordance with Section 6 of the Plan, of
amounts credited to Participants' account hereunder at the time of such
amendment or termination.

         (b) The Plan does not create a trust in favor of a Participant, his or
her designated beneficiary or beneficiaries, or any other person claiming on his
or her behalf, and the obligation of the Company is solely a contractual
obligation to make payments due hereunder. In this regard, the balance in any
account shall be considered a liability of the Company and the Participant's
right thereto shall be the same as any unsecured general creditor of the
Company. Neither the Participant nor any other person shall acquire any right,
title, or interest in or to any Deferred Amount outstanding under the Plan other
than the actual payment of such Deferred Amount in accordance with the terms of
the Plan.

         (c) No right or benefit under the Plan shall be subject to
anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and
any attempt to anticipate, alienate, sell, assign, pledge, encumber or charge
the same shall be void. No right or benefit hereunder shall in any manner be
liable for or subject to the debts, contracts, liabilities or torts of the
person entitled to such benefit. If any Participant or beneficiary shall become
bankrupt or attempt to anticipate, alienate, sell, assign, pledge, encumber or
charge any right or benefit hereunder, then such right or benefit shall in the
discretion of a majority of the Board, excluding the affected Participant, cease
and terminate; and in such event, the Company may hold or apply the same or any
part thereof for the benefit of the Participant or his or her beneficiary, his
or her spouse, children or other dependents, at any time and in such proportion
as a majority of the Board, excluding the affected Participant, may

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deem proper. Any statement to the contrary notwithstanding, the Company may
apply any Deferred Amount to satisfy, in whole or in part, any indebtedness of a
Participant to the Company.

         (d) Construction of the Plan shall be governed by the laws of Texas.

         (e) The terms of the Plan shall be binding upon the heirs, executors,
administrators, personal representatives, successors and assigns of all parties
in interest.

         (f) The headings have been inserted for convenience only and shall not
affect the meaning or interpretation of the Plan.

         (g) Each Participant shall submit to the Administrative Committee his
or her current mailing address. It shall be the duty of each Participant to
notify the Administrative Committee of any change of address. In the absence of
such notice, the Administrative Committee shall be entitled for all purposes to
rely on the last-known address of the Participant.

         (h) Any amount payable to or for the benefit of a minor, an incompetent
person or other person incapable of receipting therefor shall be deemed paid
when paid to such person's guardian or to the party providing or reasonably
appearing to provide for the care of such person, and such payment shall fully
discharge the Company and the Board with respect thereto.

         (i) Nothing in the Plan or any amendment thereto shall give a
Participant, or any beneficiary of a Participant, a right not specifically
provided therein. Nothing in this Plan or any amendment thereto shall be
construed as giving a Participant the right to be retained as a member of the
Board.

         (j) The Plan is effective on the effective date of the distribution by
Weatherford International, Inc. to its stockholders of all the outstanding
shares of stock of the Company.

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         EXECUTED THIS ____ DAY OF ________________, 2000.

                                          GRANT PRIDECO, INC.

                                          By:
                                             ----------------------------------
                                          Name:
                                               --------------------------------
                                          Title:
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                                                                   EXHIBIT 10.14

                                SUPPLY AGREEMENT

                      concluded on the date set forth below

                                 by and between

                  VOEST-ALPINE STAHLROHR KINDBERG GMBH & CO KG
                         AN AUSTRIAN LIMITED PARTNERSHIP

                                       AND

                               GRANT PRIDECO, INC.
                             A DELAWARE CORPORATION

                            DATED AS OF JULY 23, 1999

***  Denotes information that has been intentionally excluded pursuant to a
     confidential information treatment request pursuant to Rule 24b-2 of the
     Securities Exchange Act of 1934, as amended.
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                                    PREAMBLE

WHEREAS, VOEST-ALPINE STAHLROHR KINDBERG GmbH & Co KG is a limited partnership
duly organized, validly existing and in good standing under the laws of Austria,
with its principal place of business in Kindberg and business address at Alpine
Stra(beta)e 17, A-8652 Kindberg, Austria, registered in the commercial register
of the Higher Court of Leoben under the registration number 165400 k
(hereinafter referred to as "Seller"), which has been involved for many years in
the manufacture of casings and tubings; and

WHEREAS, Grant Prideco, Inc. is a company duly organized, validly existing and
in good standing under the laws of Delaware, with its principal place of
business in The Woodlands, Texas and business address at The Woodlands, Texas
77380 (hereinafter referred to as "Purchaser"), which has been involved in the
field of manufacturing of drill pipe and the processing of casings and tubings;
and

WHEREAS, Purchaser wishes to purchase and Seller wishes to supply certain pipes
as defined below;

WHEREAS, Purchaser is an affiliate of Seller and Purchaser and Seller desire, to
avoid repetitive negotiations, and to set forth the terms under which affiliated
purchases will be made, Purchaser and Seller (hereinafter also referred to as
the "Parties" and each a "Party") wish to enter into this exclusive supply
agreement (hereinafter referred to as "Supply Agreement") on a long-term basis
establishing the terms and conditions of the purchase which will be applicable
to these transactions.

NOW THEREFORE, it is agreed as follows:

1.     SALE AND PURCHASE

1.1    Seller herewith grants to Purchaser the right to purchase on a worldwide
       exclusive basis green pipes (hereinafter referred to as "Green Pipes")
       intended for the further processing into drill pipe and other Oil Country
       Tubular Goods (hereinafter referred to as "OCTG"). The sale of Green
       Pipes by or on behalf of Seller to other persons requires the prior
       written consent of Purchaser. If Seller sells Green Pipes to third
       persons without the prior written consent of Purchaser, any such sale
       shall be credited against Purchaser's Annual Minimum Purchase Obligation
       pursuant to Section 2.1.

       For the purposes of this Supply Agreement, Green Pipes shall mean pipes
       used to manufacture drill pipe, tubing and casing, provided that plain
       end casing and tubing already produced to grade

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       and requiring only end finishing to be converted to finished OCTG are
       expressly excluded from the term "Green Pipes" used in this Supply
       Agreement.

1.2    Seller grants to Purchaser the right, but Purchaser shall not be obliged,
       to purchase API couplings on an exclusive basis in North, Central and
       South America (Green Pipes and API couplings are hereinafter collectively
       referred to as the "Material").

1.3    Seller and Purchaser agree that Purchaser shall have the sole right to
       sell drill pipe and drill pipe hollows in the world. The Seller shall
       not, directly or indirectly, sell any drill pipe or drill pipe hollows
       without the written consent of the Purchaser.

2.     ANNUAL MINIMUM PURCHASE OBLIGATION

2.1    Subject to the provisions of Section 13, Purchaser shall place orders for
       purchase and Seller shall sell and deliver Green Pipes in a minimum
       quantity of (i) 45,000 metric tons for the 12-month period beginning on
       the 60th day after the date of signing of this Supply Agreement, which is
       September 21, 1999 and (ii) 60,000 metric tons for each year thereafter
       ("Annual Minimum Purchase Obligation"). Of the 45,000 metric tons to be
       ordered pursuant to clause (i) above, at least 12,500 metric tons must be
       ordered prior to December 31, 1999, of which at least 3,500 metric tons
       will be for casing according to TCA specification GT-01 rev. C of Type 7
       or Type 2 in the size range of 127,0 - 177,8 mm OD.

2.2    Subject to the provisions of Section 2.1 and Section 13, Purchaser shall
       place orders in monthly lots of not less than 3,750 metric tons and not
       more than 5,625 metric tons, with a minimum of 100 metric tons per
       dimension upon individual purchase orders placed by Purchaser. The
       Parties may agree from time to time that Purchaser's monthly purchase may
       be less than 3,750 metric tons or in excess of 5,625 metric tons,
       provided, however, that without the consent of Seller, each order shall
       not deviate from the previous order by more than 2,000 metric tons.
       Purchaser's failure to place orders of Green Pipe in an amount equal to
       the Annual Minimum Purchase Obligation shall not constitute a default
       under this Supply Agreement and Seller's only remedy for that failure
       will be the right to receive the penalties provided for under Section 13
       and no more.

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2.3    Purchaser shall be entitled to order in excess of its Annual Minimum
       Purchase Obligation up to 80,000 metric tons per year. Orders exceeding
       80,000 metric tons require the prior consent of Seller.

3.     TERM AND TERMINATION

3.1    This Supply Agreement shall commence on the first day of the calendar
       month following the signing of this Supply Agreement, and shall be
       concluded for an original term of 4 years. This Supply Agreement shall
       automatically be renewed for successive one year periods, unless
       terminated at the end of the original term or any renewal period in
       writing, subject to a six month termination period. Nine months prior to
       the expiration of the original 4 year term the Parties shall meet to
       negotiate terms and conditions for a renewal of the Supply Agreement.

3.2    If either Party is in material default of any of its obligations under
       this Supply Agreement and such default continues unremedied for 90 days
       after written notice thereof by the Party not in default, such
       non-defaulting Party may cancel this Supply Agreement and/or any orders
       which may be affected by such default and shall have the right, in its
       sole discretion, to exercise all rights and remedies available to it
       under this Supply Agreement, including but not limited to Section 13, or
       to exercise such rights and remedies as provided for in other agreements
       concluded between the Parties or their affiliates, including but not
       limited to the Operating Agreement dated July 23, 1999 concluded between
       VOEST-ALPINE SCHIENEN GmbH & Co KG and GRANT PRIDECO, Inc.

3.3    An uncured failure to pay any amounts due to Seller under this Supply
       Agreement which is not contested within 90 days of submission of the
       invoice therefor as provided in Section 4.3 hereof shall be considered a
       material default by Purchaser in the meaning of Section 3.2.

3.4    Continued failure by Seller to materially meet the quality and
       specification requirements or the delivery requirements under this Supply
       Agreement or breach by Seller of the exclusivity provisions of Section
       1.1 and Section 1.3 hereof shall be considered a material default by
       Seller in the meaning of Section 3.2.

3.5    Furthermore, Seller may by written notice to Purchaser forthwith
       terminate this Supply Agreement

       (a) if bankruptcy proceedings are opened against Purchaser, or Purchaser
           is insolvent; or

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       (b) if Purchaser or an affiliated entity no longer holds any limited
           partnership interest in Seller.

3.6    Furthermore, Purchaser may by written notice to Seller forthwith
       terminate this Supply Agreement

       (a)  if bankruptcy proceedings are opened against Seller, or Seller is
            insolvent; or

       (b)  if Purchaser or an affiliated entity no longer holds any limited
            partnership interest in Seller.

3.7    (i)  If an event of force majeure occurs, the affected Party shall
            promptly give notice thereof to the other Party and use its best
            efforts to cure or correct such event of force majeure. Seller may,
            during a period of shortage or delay due to any such causes, prorate
            its supply in such a manner as deemed equitable in the judgement of
            Seller. The Annual Minimum Purchase Obligation and the term of this
            Supply Agreement as provided in Section 3.1 herein shall be adjusted
            accordingly based upon the duration of any force majeure event. If
            the event of force majeure shall continue for a period of twelve
            months, either Party shall have the right to forthwith terminate
            this Supply Agreement.

       (ii) For the purpose of the Supply Agreement "force majeure" shall mean
            all circumstances which are beyond the control of a Party exercising
            a normal standard of care and which prevents such Party from
            complying with its contractual obligations hereunder. Subject to the
            foregoing and without limiting the generality of the foregoing, the
            following circumstances in particular shall be regarded as force
            majeure: acts of God; hurricane, tornado; labor strike, lockout or
            other industrial disturbance; war, riot, sabotage, act of public
            enemy, terrorist act or gang violence; blockade; serious epidemic;
            earthquake or other earth movement, flood or other natural disaster;
            bomb blast or other explosion; fire; shortage of goods essential to
            a Party's performance of this Agreement, or their delay by a
            carrier; or, government action that prevents performance. It is
            explicitly agreed among the parties that any changes in market
            conditions or the institution of U.S. Antidumping and Countervailing
            Duty proceedings shall (subject to the provisions of Section 12) not
            be considered as force majeure events.

3.8    Any termination of this Supply Agreement will not affect any individual
       purchase order which may have been issued by Purchaser prior to the date
       of termination, unless stated otherwise herein. The provisions of
       Sections 8, 9, 10, 11, 12, 13, 15, and 16.3 shall survive any termination
       of this Supply Agreement. In case this Supply Agreement is terminated,
       Purchaser shall pay within 60 (sixty) days after the date of termination
       any still outstanding Purchase Price or penalty

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       payments due to Seller. In the event this Supply Agreement is terminated
       by Purchaser pursuant to this Section 3 as a result of a material default
       by Seller, any penalty payments due to Seller pursuant to Section 13
       accruing on or after the date of such material default shall not be paid
       and shall be deemed to be forfeited by Seller.

4.     PURCHASE PRICE/INVOICE

4.1    The base purchase price for the Green Pipes is ATS [***] ("Purchase
       Price") and shall include European sales tax and all export taxes and
       duties if applicable to Green Pipes. The Purchase Price is based on
       Purchaser's specifications in Purchaser's specification No. 359 (1), rev.
       O, dated May 7, 1998. To the extent there are deviations from this
       specification, the Purchase Price shall be adjusted as set forth on Annex
       A, to the extent provided in Annex A. Annex B sets forth length
       requirements for Annex A. Deviations not contemplated by Annexes A and B
       shall result in an adjustment to the Purchase Price that reflects the
       differential in costs of manufacture of the product from Purchaser's
       specification No. 359 (1). Purchaser shall consult with Seller on any
       change in specifications and will not request specifications which Seller
       cannot fulfill with commercially reasonable efforts. The Purchase Price
       is calculated on the basis of C.I.F. Houston in accordance with Incoterms
       1990. Upon Purchaser's request, the Green Pipes shall be delivered to a
       destination port other than Houston. If any change in delivery terms
       pursuant to Purchaser's request results in a higher or lower cost to
       Seller, the Purchase Price shall be increased or decreased accordingly.

4.2    During the term of this Supply Agreement (including the renewal periods),
       the Purchase Price shall be subject to adjustment on a semi-annual basis
       (starting on the first day of the sixth calendar month following the
       signing of this Supply Agreement). The adjustment shall be computed on
       the basis of the average of seamless alloy casing and tubing prices as
       reported by the Preston Pipe Report or any report replacing it at the
       time of order placement and shall be effected for all purchase orders
       given on or after the first day of the calendar month following the
       issuance of such Preston Pipe Report. The basis of assessment shall be
       the average of seamless alloy casing and tubing prices as reported in the
       Preston Pipe Report published in January 1999 and reflecting actual
       October 1998 prices. This report shall be regarded as the 100 Index. The
       index figure, however, is limited to upward fluctuations of not more than
       5 %, based on the 100 Index during the term of this Supply Agreement.
       Downwards fluctuations may be made, but not below the 100 Index.

4.3    Invoices will be submitted by Seller to Purchaser. Invoices will
       reference Purchaser's purchase order number and will contain such other
       information as Purchaser may reasonably request.

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       Purchaser shall effect payment within sixty (60) calendar days after the
       vessel arrival in the port of destination or net 105 days from ocean bill
       of lading date, whichever comes first. Purchaser shall pay interest on
       overdue invoice payments that are not contested as provided in Section
       3.3 from the due date up to the actual date of payment at the rate
       determined to be three percent (3 %) per annum above the six months
       EURIBOR.

4.4    The Parties may agree from time to time to set off any amount owed by
       Seller to Purchaser pursuant to this Supply Agreement against any amount
       owed by Purchaser to Seller pursuant to this Supply Agreement.

4.5    In the event the Green Pipe being purchased by Purchaser does not meet
       the specifications and is rejected, Purchaser may elect to credit amounts
       paid for that Green Pipe against other purchases or to set off against
       penalties due by Purchaser pursuant to Section 13 if Seller agrees to the
       rejection or if it is determined that the Green Pipe does not meet the
       required specifications.

5.     PURCHASE ORDERS

5.1    This Supply Agreement does not constitute a purchase order. Purchases
       under this Supply Agreement shall be made with purchase orders in a form
       mutually agreed upon, placed by Purchaser. The first purchase order shall
       be placed within 60 days after the date of signing of this Supply
       Agreement, i.e. by September 21, 1999.

5.2    Any individual purchase order shall be acknowledged by Seller. Each order
       acknowledgment shall contain either Seller's confirmation of the delivery
       date as requested by Purchaser or Seller's own estimated delivery date,
       which shall be no later than 10 days after Purchaser's requested delivery
       date. Unless otherwise agreed to by Purchaser and Seller there shall be
       at least two (2) months between receipt of the purchase order and the
       delivery date. For the purposes of this Supply Agreement, the date on
       which material is delivered shall be the ocean bill of lading date.

5.3    If Seller is unable to furnish the total quantity as ordered by
       Purchaser, Seller shall without undue delay advise Purchaser. In such an
       event, Purchaser shall have the option to cancel, at no charge, within 10
       days from receipt of such advice the portion of the individual purchase
       order which Seller is unable to furnish and the entire amount of the
       cancelled portion shall be credited against the Annual Minimum Purchase
       Obligation.

<PAGE>   8

                                       8

6.     DELIVERY DATES

6.1    Seller agrees to make every reasonable effort to meet the delivery dates
       specified by Purchaser in any purchase order. If Seller is late in the
       delivery of Green Pipes by 14 or more days, such late shipment shall be
       counted for the Purchaser's monthly orders under Section 2.1 of this
       Supply Agreement for both the month in which the order was placed and the
       following month. If Seller is late in the delivery of Green Pipes by one
       or more months, Purchaser shall have the option to cancel, at no charge,
       the portion of the individual purchase order which has not yet been
       delivered and the entire amount of the cancelled portion shall be
       credited against the Annual Minimum Purchase Obligation.

6.2    Delivery is C.I.F. Houston in accordance with Incoterms 1990. Purchaser
       may also request, as specified in any particular purchase order, that the
       delivery destination of the Material be a location other than Houston.
       For the calculation of the Purchase Price, Section 4.1 of this Supply
       Agreement shall apply.

7.     HAZARDOUS CONDITIONS

7.1    In the event that Seller or Purchaser learns of any issue relating to a
       potential safety hazard or unsafe condition in any of the Material, or is
       advised of such by competent authorities of any government having
       jurisdiction over such Material, it will immediately advise the other
       Party by the most expeditious means of communication. The Parties shall
       cooperate in communication with the public and governmental agencies and
       in correcting any such condition that is found to exist.

7.2    The Parties shall consult with each other prior to making any statements
       to the public or to any governmental agency concerning issues related to
       the safety hazard or unsafe condition except in circumstances in which a
       failure to do so would prevent the timely notification which may be
       required to be given under an applicable law or regulation.

7.3    Expenses associated with the correction of a safety hazard or unsafe
       condition by or associated with the Material, including reasonable
       attorneys' fees, court costs, expenses, and the like, if they become
       necessary, shall be borne by the Party which caused such safety hazard or
       unsafe condition, subject only to any other arrangement negotiated by the
       Parties in light of the particular facts and circumstances then existing.

<PAGE>   9

                                       9

8.     CONFIDENTIAL INFORMATION

       The Parties understand and agree that information concerning any of the
       information set forth herein is confidential to each of them and shall,
       except as may otherwise be required by law, regulation or order, only be
       disclosed to unaffiliated third parties, in writing or orally, upon the
       specific prior written agreement of the Parties, provided, however, that
       if any of such terms have previously been disclosed, for any of the
       foregoing reasons, these terms shall no longer be treated as confidential
       by either Party.

9.     PATENTS

9.1    Each Party hereby represents to the other Party that, to the best of its
       knowledge, there are no third-party patent, trade secret, or copyright
       rights which would be infringed by the manufacture, use or sale of the
       Material to be supplied hereunder.

9.2    Each Party will defend any suit or proceeding brought against the other
       Party, any of its affiliates or their customers, based on a claim that
       the manufacture, use or sale of the Material purchased hereunder
       constitutes an infringement of any patent or copyright of any country or
       any trade secret to the extent and only to the extent such suit or
       proceeding is attributable to the actions or omissions by such Party;
       provided that each Party is notified by the other Party in writing and
       given authority, information, and assistance for the defense of same. If,
       as a result of any such suit or proceeding, the use or sale of the
       Material purchased hereunder is enjoined, both Parties shall use their
       best efforts to modify any infringing Material so that it becomes
       non-infringing.

10.    WARRANTY

10.1   Green Pipes manufactured by Seller for Purchaser under this Supply
       Agreement shall be of the kind and quality as provided in Section 1 of
       this Supply Agreement and as per the specification mutually agreed by the
       Parties and the applicable parts of the API standards. In case of a
       conflict between the specification and the API standards, the
       specification shall prevail. The review or approval by Purchaser of any
       designs, engineering drawings, quality control procedures, or any other
       aspect of the design and manufacture of Material hereunder shall not
       relieve Seller of the responsibility for producing Material which
       complies with the specification and all current local,

<PAGE>   10

                                       10

       state, and federal governmental specifications and standards existing at
       the date of delivery as expressly stated and identified in the
       specification. Further, Seller shall be responsible for producing
       Material which is of good workmanship and performance and of merchantable
       quality. Seller also warrants that it complies with all Austrian
       regulations applicable to the manufacturing of Material. Seller also
       shall be responsible for any mill-related defects in the Material,
       including, but not limited to, laps, slugs, gouges, slivers and seams,
       detected prior to or after processing.

10.2   The warranty period extends for, and warranty claims may only be asserted
       in writing by Purchaser against Seller within, the first 12 months of
       service of the Green Pipes or within 2 years after delivery of the Green
       Pipes to Purchaser, whichever comes first. Warranty claims for corrosion
       or mechanical damage may only be asserted in writing by Purchaser against
       Seller within six (6) months after the Material's arrival at its port of
       destination.

10.3   In case Purchaser asserts warranty claims against Seller, Seller shall
       have the right to examine such Material within 30 calendar days. If any
       of the delivered Material fails to meet the warranties set forth above,
       Seller shall, as promptly as practicable and at its expense, repair,
       replace or cause to be repaired or replaced same without undue delay. In
       either case, the cost of freight and handling to return or replace the
       Material shall be at the expense of Seller and the Seller shall reimburse
       Purchaser for the costs of any fabrication and reasonable additional
       inspection costs incurred by Purchaser in the processing of the defective
       Material.

10.4   In the event that a warranty claim exists and Seller has accepted to be
       responsible for the warranty claim, or is otherwise determined to be
       responsible, Seller will at Purchaser's option issue credit against
       future invoices or set off against due penalty payments or Seller will
       pay to Purchaser the amount due within 30 days of Seller's receipt of a
       debit memorandum or some other written request for payment.

10.5   Notwithstanding any provision to the contrary, the Parties may agree to
       an adjustment in the Purchase Price or to a (partial) cancellation of the
       respective purchase order in the event of any failure or defect in the
       Material.

11.    PRODUCT LIABILITY

11.1   In the event that product liability claims are asserted against Seller or
       Purchaser such Party will immediately advise the other Party of such
       claim by the most expeditious means of

<PAGE>   11

                                       11

       communication. The Parties shall cooperate in communication with the
       public and governmental agencies with respect to such liability claim.

11.2   Each Party shall defend any suit or proceeding brought against the other
       Party, any of its affiliates or their customers, based on product
       liability claims for which they are responsible. Unless agreed otherwise,
       until such time as responsibility has been determined, the Parties shall
       bear the costs and expenses (including, but not limited to, reasonable
       attorneys' fees and expenses, settlements, judgments, and court costs)
       arising out of or related to product liability in the ratio of the value
       added to the finished product by each Party.

11.3   In the event a product liability claim is successfully asserted against
       one of the Parties, the Party which caused such defect agrees to protect,
       defend, hold harmless, indemnify, and reimburse the other Party and its
       distributors, dealers, affiliates, insurers, and customers during the
       term of this Supply Agreement and any time thereafter for any and all
       liabilities, losses, damages, costs and expenses (including, but not
       limited to, reasonable attorneys' fees and expenses, settlements,
       judgments, and court costs) arising out of or related to such liability,
       demand, lawsuit, action or claim.

11.4   If the Party which caused such defect cannot be identified, the Parties
       shall bear all liabilities, losses, damages, costs and expenses
       (including, but not limited to, reasonable attorneys' fees and expenses,
       overhead, settlements, judgments, and court costs) arising out of or
       related to such liability, demand, lawsuit, action or claim in the ratio
       of the value added to the Green Pipe by each Party.

11.5   Both Parties shall maintain, at their own expense, appropriate insurance
       in the amount of at least US$ 25 million for injury, death, or property
       damage. Satisfactory evidence by copy of certificate of insurance thereof
       shall be submitted annually to the other Party upon the other Party's
       request. Such insurance shall be carried during the term of this Supply
       Agreement, including extension, and for at least three (3) years
       thereafter.

12.    PURCHASER'S AND SELLER'S LIABILITIES

12.1   The Parties shall consult with each other on a regular basis on
       procedures on how to minimize any risk with respect to the imposition of
       U.S. Antidumping or Countervailing Duties provided that such consultation
       is not in violation of law and is commercially reasonable.

<PAGE>   12

                                       12

12.2   To this end, Seller shall employ a special sales advisor ("Special Sales
       Advisor"). The appointment and dismissal of said Special Sales Advisor
       shall be at the recommendation of Purchaser and require the unanimous
       vote of the representatives of GRANT and Voest-Alpine Schienen GmbH & Co
       KG to the Supervisory Board of the general partner of the Seller. The
       Special Sales Advisor shall report to the Management Board of Seller.

12.3   If, despite these measures, a proceeding or investigation is initiated
       threatening to lead to the imposition of U.S. Antidumping or
       Countervailing Duties on products covered by this Supply Agreement either
       Party may, upon written notice to the other, request a stay on the
       performance of the obligations under Sections 1, 2 and 13 under this
       Supply Agreement during the proceeding or investigation not to exceed two
       years; provided, however, that such Party reasonably determines that
       continued sales may subject the Party or the sales to the imposition of
       U.S. Antidumping or Countervailing Duties. During the period of the stay,
       all rights and obligations of the Parties under the above-referenced
       Sections shall cease.

12.4   At any time during the stay under Section 12.3, either Party may request
       that this Supply Agreement not be stayed and that Green Pipe continue to
       be imported into the U.S. provided that the requesting Party (i) agrees
       to indemnify the other Party for the additional duties or payments
       imposed (ii) agrees to post any required bonds and (iii) provides
       adequate assurances of payment for the additional duties or payments.

12.5   In the event that actual additional duties or payments are imposed,
       either Party may elect to terminate this Supply Agreement provided that
       the other Party may require the Supply Agreement not be terminated as
       long as such Party (i) agrees to indemnify the other Party for any
       additional duties or payments imposed and (ii) provides adequate
       assurances of payment for the additional duties and payments.

12.6   If a proceeding or investigation is initiated threatening to lead to the
       imposition of U.S. Antidumping on Countervailing Duties with respect to
       products subject to this Supply Agreement, Purchaser shall, at its
       expense, defend Seller in such action. Purchaser shall be entitled to
       control the defense, but Seller shall be entitled to participate in the
       action.

12.7   This Section 12 provides for the exclusive remedies for any action by the
       Parties that may lead to the imposition of U.S. Antidumping or
       Countervailing Duties.

<PAGE>   13

                                       13

13.    PENALTY

13.1   Purchaser agrees to pay a penalty of ATS 600 for each metric ton to the
       extent that purchase orders fell short of the Annual Minimum Purchase
       Obligation of Purchaser required under Section 2.1 during the entire term
       of this Supply Agreement. Purchaser shall pay any penalties due within 30
       days following the end of the contract year during which the penalties
       arose.

13.2   Any penalties paid pursuant to Section 13.1 may be applied by and repaid
       to Purchaser against separate invoices for purchases in excess of the
       Annual Minimum Purchase Obligation in the following year.

13.3   For calculation purposes of the penalty only, any order placed by
       Purchaser which was not delivered in compliance with this Supply
       Agreement, shall be deducted from the Annual Minimum Purchase Obligation.
       In case this Supply Agreement is terminated, the penalty due for the last
       year prior to termination pursuant to Section 13.1 shall be calculated on
       a pro rata basis.

14.    CURRENCY CONVERSION

       All of the amounts payable under this Supply Agreement that are
       denominated in ATS shall be converted to EURO at such time as Seller and
       Purchaser so agree, however on April 1, 2000 at the latest.

15.    DISPUTE RESOLUTION

       All disputes arising out of this Supply Agreement or related to its
       violation, termination or nullity shall be finally settled under the
       Rules of Arbitration and Conciliation of the International Arbitral
       Centre of the Austrian Federal Economic Chamber in Vienna (Vienna Rules)
       by three arbitrators appointed in accordance with these rules. The
       substantive law of Austria shall be applicable and the language to be
       used in the arbitral proceedings shall be English. The place of
       arbitration shall be Vienna, Austria.

<PAGE>   14

                                       14

16.    MISCELLANEOUS

16.1   Modifications of and amendments to this Supply Agreement shall be valid
       and binding only if made in writing.

16.2   If any provision hereof becomes invalid, this shall not effect the
       validity of the remaining provisions hereof.

16.3   This Supply Agreement shall be governed by and construed according to
       Austrian law. The application of the United Nations Convention on
       Contracts for the International Sale of Goods is expressly excluded.

16.4   The termination of this Supply Agreement shall not release either Party
       from any liability, obligation, or agreement which, pursuant to any
       provision of this Supply Agreement, is to survive or be performed after
       such expiration or termination.

16.5   This Supply Agreement has been made in the English language and has been
       executed in two originals with Seller and Purchaser receiving one each.

16.6   All notices, requests, consents and other communications hereunder shall
       be made in writing and sent by registered or certified mail or by any
       express mail service or courier service or by facsimile transmission
       (with receipt confirmed) to the parties at the addresses and numbers
       below:

           If to Purchaser, to:

           Grant Prideco, Inc.
           1450 Lake Rubbins Drive
           Two Wood Lane, Tx USA 77380

           Attention:  John C. Coble and Curtis W. Huff
           Telephone:  (281) 297 8500
           Telecopier: (281) 297 8569 and (713) 297 8488

           With a copy to:

           Bruckhaus Westrick Heller Lober
           Seilergasse 16
           1010 Vienna
           Austria

<PAGE>   15

                                       15

           Attention:  Jenny W.T. Power
           Telephone:  (++43 1) 51515  Ext. 210 or 310
           Telecopier: (++43 1) 512 63 94

           If to Seller to:

           VOEST-ALPINE STAHLROHR KINDBERG GmbH & Co KG
           Alpinestrasse 17
           8652 Kindberg
           Austria

           Attention:  Hubert Wastl and Eduard Obermayer
           Telephone:  (++43 1) 3842/202 4453
           Telecopier: (++43 1) 3842/202 2444

           With a copy to:

           VA Schiene GmbH
           Kerpelystrasse 201
           8700 Leoben
           AUSTRIA

           Attention:  Willibald Mautner
           Telephone:  (++43) 3842/202 4453
           Telecopier: (++43) 3842/202 2444

           and a copy to:

           VOEST-ALPINE STAHL AG
           Voest-Alpine-Strasse 1
           4020 Linz
           AUSTRIA
           Attention:  Hubert Possegger
           Telephone:  (++43/70/6585-9516)
           Telecopier: (++43/70/6980-5581)

<PAGE>   16

                                       16

16.7   The subject headings of this Supply Agreement are for the convenience of
       the Parties and shall not be considered in any question of interpretation
       or construction of this Supply Agreement.

IN WITNESS WHEREOF, the Parties have executed or caused to be executed this
Supply Agreement as of July 23, 1999.

        /s/ [ILLEGIBLE]                           /s/ [ILLEGIBLE]
   -------------------------              -------------------------------
      Grant Prideco, Inc.                 VOEST-ALPINE STAHLROHR KINDBERG
                                                   GmbH & Co KG

<PAGE>   17

                                       17

                                    ANNEX A

1.A)     For drill pipe and casing specs, minimum quantity of 500 mt/item.

         GP359
         TCA G1-01 rev. C type 2
         ***

1.B)     For drill pipe and casing specs, minimum purchase of 250 mt/size.

         Price for GP 348 rev.I              ***
         Price for GP 347 rev.I              ***
         Price for TCA 61-01 rev. C type 7   ***
         ***

1.C)     For tubing, minimum quantity of 250 mt/size.

         Price for GP spec 359               ***
         Price for GP spec 347               ***
         Price for GP spec 348.              ***
         ***

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