Document:

Deferred Compensation Plan

Exhibit 10.2 
 
 
VARCO INTERNATIONAL, INC.

 
DEFERRED COMPENSATION PLAN

 
 
[Effective January 1, 2003] 
 

 
ARTICLE I

Purpose 
 
1.1.    Purpose of Plan.  The purpose of the Varco International, Inc. Deferred Compensation Plan (the
“Plan”) is to advance the interests of Varco International, Inc, (the “Employer”) and its subsidiaries (hereinafter collectively referred to as the “Company”), by attracting and retaining in its employ highly qualified
individuals for the successful conduct of its business, as well as to attract highly qualified directors. The Company hopes to accomplish these objectives by helping to provide for the retirement of its key employees and directors selected to
participate in the Plan. 
 
1.2.    Plan Amendment and Restatement.  The Plan is an amendment and restatement of the old Tuboscope, Inc. Deferred Compensation Plan, which has been amended and restated in this document and renamed
as the Varco International, Inc. Deferred Compensation Plan. This amendment and restatement reflects the merger of the Varco Deferred Compensation Plan with and into the Tuboscope, Inc. Deferred Compensation Plan. Participants hereunder who
previously participated in the old Varco Deferred Compensation Plan will have their accrued benefits thereunder transferred into the Plan. 
 
1.3.    ERISA Status.  The Plan is intended to qualify for certain exemptions under Title I of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), provided for plans that are unfunded and maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated
employees. 
 
1.4.    Effective
Date.  This Plan is effective January 1, 2003 (“Effective Date”). 
 
1.5.    Grantor Trust.  The Employer may establish, in its sole discretion, a grantor trust to be utilized in conjunction with this Plan. 

ARTICLE II 
Definitions 
 
2.1.    “Account” means collectively the Participant’s Employer Account and the Participant’s Employee Account. In addition, with respect to any Participant who
was previously a participant in the old Varco Deferred Compensation Plan and whose accounts thereunder were transferred into this Plan, the term “Account” shall also include the value of those benefits transferred from that plan into this
Plan, which amount may be further subdivided among the Participant’s Employer Account and the Participant’s Employee Account as determined by the Committee. 
 
2.2.    “Beneficiary” means the person designated by each Participant, on a
form provided by the Committee for this purpose, to receive the Participant’s distribution under this Plan in the event of the Participant’s death prior to receiving complete payment of his Account. In order to be effective under this
Plan, any form designating a Beneficiary must be delivered to the Committee before the Participant’s death. In the absence of such an effective designation of a Beneficiary, “Beneficiary” means the Participant’s spouse or, if
there is no spouse on the date of Participant’s death, the Participant’s estate. 
 
2.3.    “Board” means the Board of Directors of the Employer or the board of directors of a company that is a successor to the Employer. 
 
2.4.    “Bonus” means any bonus
paid to a Participant under any plan, policy or program of the Company providing for the payment of bonuses to employees. 
 
2.5.    “Code” means the Interval Revenue Code of 1986, as amended. 
 
2.6.    “Committee” means the
committee appointed by the Employer to administer the Plan. 
 
2.7.    “Compensation” means the total pay paid by the Company to a Participant for services rendered while a Participant, including but not limited to any amounts deferred by the Participant under this
Plan, elective contributions made on the Participant’s behalf pursuant to a 401(k) plan or a plan maintained under Section 125 of the Code, and any other reductions of such Participant’s remuneration, but excluding those items excluded
from the “compensation” definition under the 401(k) Plan. 
 
2.8.    “Deemed Investments” mean, with respect to any Account, the hypothetical investment options with respect to which such Account is deemed to be invested for purposes of determining the
value of such Account under this Plan. 
 
2.9.    “Director” means a member of the Board of Directors of Varco International, Inc. 
 
2.10.    “Employee Account” means the bookkeeping account maintained by the Committee reflecting each
Participants’ Employee Contributions, together with an hypothetical income, gain or loss and any payments or distributions attributable to such bookkeeping account. 
 
2.11.    “Employee Contribution” means the amount that is credited, as a
bookkeeping entry, to a Participant’s Employee Account pursuant to the provisions of Section 3.2. 
 
2.12.    “Employer Account” means the bookkeeping account maintained by the Committee reflecting each
Participant’s Employer Contributions, together with any hypothetical income, gain or loss and any payments or distributions attributable to such bookkeeping account. 
 

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2.13.    “Employer Contribution” means the total contributions credited to a Participant’s Employer Account for any one Plan Year pursuant to the provisions of Section 3.1. 
 
2.14.    “401(k) Plan” means the
Varco International, Inc. 401(k)/Profit Sharing Plan, or any successor thereto. 
 
2.15.    “Hardship” means an unforeseeable financial emergency which is a severe financial hardship to the Participant resulting from a sudden and unexpected loss or
accident of the Participant or of a dependent of the Participant, a loss of the Participant due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. To
qualify as an unforeseeable financial emergency, payment may not be made to the extent that such hardship is or may be relieved (i) by reimbursement or compensation by insurance or otherwise, or (ii) by liquidation of the Participant’s assets,
to the extent the liquidation of such assets would not itself cause severe financial hardship. 
 
2.16.    “Participant” means an employee or Director of the Company who has been selected to participate in the Plan. 
 
2.17.    “Plan” means this Varco
International, Inc. Deferred Compensation Plan and any amendments hereto. 
 
2.18.    “Plan Year” means the 12-month period beginning each January 1 and ending each December 31. 
 

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ARTICLE III

Contributions 
 
3.1.    Employer Contributions.  The Company will make an Employer Contribution on behalf of each
Participant (who is an employee of the Company) in the form of a matching contribution on the Participant’s Employee Contributions, on a dollar-for-dollar basis, up to 4% of the Participant’s Compensation, per pay period, reduced by any
match allocated to the Participant under the 401(k) Plan. 
 
In addition, the Company may make a discretionary Employer Contribution, in such amount, and on behalf of such Participant’s, as it determines in its sole discretion. 
 
3.2.    Employee Contributions.  For each Plan Year, the Committee may, in its
sole discretion, and in such manner as it determines, allow a Participant to elect to defer the present payment by the Company of all or any portion of the following: 
 

	 	•	 	Compensation; 

 

	 	•	 	Bonus (effective to the extent this election is in excess of the Compensation election); 

 

	 	•	 	Directors’ Fees (annual retainer; Board meeting fees; Committee meeting fees; and any other payments to Directors); and/or 

 

	 	•	 	Any other forms of remuneration approved by the Committee 

 
and instead, have that amount credited as a bookkeeping entry to his Employee Account. The remuneration/income items otherwise currently payable to the
Participant shall be reduced by the amount of such Participant’s Employee Contribution. 
 
3.3.    Employee Contribution Requirement.  With respect to any Participant who is an employee of the Company, any election hereunder to defer Compensation or Bonus shall
be effective only if such Participant’s deferrals and contributions under the 401(k) Plan are restricted by any applicable governmental or 401(k) Plan limitations during the calendar year. If such Participant’s deferrals and contributions
under the 401(k) Plan are not so restricted, the Participant’s Compensation or Bonus deferrals hereunder for such calendar year shall be returned to the Participant. Any such Participant’s Compensation or Bonus deferral election hereunder
shall be reduced by any amounts such Participant defers into the 401(k) Plan for such calendar year. 
 
3.4.    Manner of Deferral Election.  The Committee shall prescribe, in its sole discretion, the procedures,
limitations and timing requirements, for Employee Contribution elections. Except as otherwise provided by the Committee, Employee Contribution elections shall be made as follows: 
 

	 	•	 	In the case of deferral of Compensation or Bonus, such deferral election must be approved by the Committee prior to the beginning of the applicable Plan Year for
which the election is to take effect, or at such other rimes as determined by the Committee. The applicable period for such deferrals shall be the Plan Year. 

 

	 	•	 	In the case of deferral of Director Fees, such election must be approved by the Committee prior to the beginning of the applicable twelve month period for which the
Annual Retainer relates (the applicable period), or in the case of Board and/or Committee Meeting Fees, prior to the date of such meeting (the applicable period). 

 

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Such Employee Contribution
election(s) shall remain in force and effect for the applicable period to which such election relates and for such subsequent applicable period, unless modified by the Participant prior to the first day of such subsequent applicable period. Such
deferral election shall be irrevocable during the applicable deferral period unless otherwise provided. The Committee may establish sub-accounts to reflect any employer discretionary contributions, and any employer matching contributions.

 
3.5.    Suspension of Plan
Contributions/401(k) Plan Hardship Distribution.  Any Participant who receives a hardship distribution under the 401(k) Plan shall be suspended from participating in the Plan (i.e., ineligible to receive any Employer Contributions and from
making Employee Contributions) to the extent required to satisfy applicable rules governing the 401(k) Plan (i.e., as of 2003, for the six (6) month period immediately following the receipt of such 401(k) Plan hardship distribution). If such
suspension period includes the first day of a Plan Year, then such Participant shall be considered ineligible to participate in the Plan for such Plan Year (i.e. ineligible to receive any Employer Contributions and from making any Employee
Contributions), unless such employee is subsequently selected to participate in the Plan pursuant to Section 6.4 following the end of such Plan suspension. 
 

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ARTICLE IV

Accounts 
 
4.1.    Employer Accounts.  The Committee shall establish and maintain an individual bookkeeping account for
each Participant, which shall be the Participant’s Employer Account. The Committee shall credit, as a bookkeeping entry, the amount of each Employer Contribution made on behalf of a Participant to such Participant’s Employer Account as of
the last day of each month of the Plan Year for which the Employer Contribution was made or at such other times as determined by the Committee. The Committee shall further adjust the Participant’s Employer Account with any hypothetical income,
gain or loss and any payments or distributions attributable to such Account on a daily basis, or at such other times as it shall determine. The Company shall not be required to segregate any of its assets with respect to the Employer Accounts, nor
shall any provision of the Plan be construed as constituting such segregation. 
 
4.2.    Employee Accounts.  The Committee shall establish and maintain an individual bookkeeping account for each Participant, which shall be the Participant’s
Employee Account. The Committee shall credit, as a bookkeeping entry, the amount of each Employee Contribution made on behalf of a Participant to such Participant’s Employee Account as soon as administratively feasible following the applicable
deferral. The Committee shall further adjust the Participant’s Employee Account with any hypothetical income, gain or loss and any payments or distributions attributable to such Account on a daily basis, or at such other times as it shall
determine. The Company shall not be required to segregate any of its assets with respect to the Employee Accounts, nor shall any provision of the Plan be construed as constituting such segregation. 
 
4.3.    Hypothetical Accruals to the
Account.  In accordance with procedures established by the Committee, the Participant may designate the Deemed Investments with respect to which his or her Account shall be deemed to be invested. If a Participant fails to make a proper
designation, then his Account shall be deemed invested in the Deemed Investments designated by the Committee in a uniformly non-discriminatory manner. A Participant may change such designation with respect to future Employer Contributions and
Employee Contributions, as well as with respect to amounts already credited to his Account, provided such change(s) are made in accordance with the procedures established by the Committee. A copy of any available prospectus or other disclosure
materials for each of the Deemed Investments shall be made available to each Participant upon request. The Committee shall determine from time to time each of the Deemed Investments made available under the Plan and may change any such
determinations at any time. Nothing herein shall obligate the Company to invest any part of its assets in any of the investment vehicles serving as the Deemed Investments. 
 
4.4.    Vesting.  A Participant will always be one hundred percent vested in
both his Employer Account and Employee Account. 
 
4.5.    Nature and Source of Payments.  The obligation to make distributions under this Plan with respect to each Participant shall constitute a liability of the Company to the Participant and any
Beneficiary in accordance with the terms of this Plan. All distributions payable hereunder shall be made from the general assets of the Company, and nothing herein shall be deemed to create a trust of any kind between the Company and any Participant
or other person. No special or separate fund need be established nor need any other segregation of assets be made to assure that distributions will be made under this Plan. No Participant or Beneficiary shall have any interest in any particular
asset of the Company by virtue of the existence of this Plan. Each Participant and Beneficiary shall be an unsecured general creditor of the Company. 
 

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4.6.    Statements to Participants.  Periodically as determined by the Committee, but not less frequently than annually, the Committee shall transmit to each Participant a written statement regarding the
Participant’s Account for the period beginning on the date following the effective date of the preceding statement and ending on the effective date of the current statement. 
 

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ARTICLE V

Distributions 
 
5.1.    Occasions for Distributions.  The Company shall distribute a Participant’s Account following
the events and in the manner set forth in this Article V. A Participant’s Account shall be debited in the amount of any distribution made therefrom as of the date of the distribution. 
 
5.2.    Distribution Election.  Subject to rules established by the Committee,
a Participant may file a distribution election with respect to the value of the Participant’s Account following his termination of employment with the Company. Such distribution election must be made in a manner acceptable to the Committee for
that purpose. To be effective, such distribution election must be filed at least 12 months prior to the date the Participant’s Account is to be distributed or at such other times as determined by the Committee. In the event the Participant
files more than one distribution election, the last effective distribution election shall control. If no effective distribution election form exists, as determined in the sole discretion of the Committee, the Participant’s Account will be
distributed in the form of a lump-sum payment. Anything to the contrary notwithstanding, the Committee, in its sole discretion, has the right to substitute a lump-sum payment to the Participant equal to the Participant’s Account. 
 
5.3.    Form of
Distributions.  Plan distributions may be made in the following manner: 
 

	 	•	 	Lump sum; 

 

	 	•	 	Installments over three, five or ten years; 

 
provided however, that any installment election shall automatically be paid in the form of a lump sum in the event the value of the Participant’s
Account at the time of the distribution is $50,000.00 or less. Installment distributions shall be paid in quarterly intervals (or at such other intervals as approved by the Committee) and computed in such manner as determined in the sole discretion
of the Committee. 
 
5.4.    Distribution on Account of Termination of Employment.  Upon a Participant’s termination of employment with the Company for any reason, the Company shall distribute, or begin distributing, to
the Participant (or the Participant’s Beneficiary) within a reasonable period of time, the Participant’s Account in such form(s) as previously elected by the Participant, notwithstanding any In-Service Distribution/Fixed Deferral Period
election made by a Participant under Section 5.7 of the Plan. 
 
5.5.    Continuation of Hypothetical Accruals to the Account after Commencement of Distributions.  If a Participant’s Account is to be distributed in a form other than a lump sum, then such Account
shall continue to be adjusted for hypothetical income, gain or loss and any payment or distributions attributable to the Account, until the entire Account has been distributed. 
 
5.6.    Hardship Distribution.  In the event that the Committee, upon the
written request of a Participant, determines in its sole discretion that such Participant has incurred a Hardship, such Participant shall be entitled to receive a distribution of some (or all) of the Participant’s Accounts, in an amount not to
exceed the lesser of (a) the amount determined by the Committee as necessary to meet such Participant’s needs created by such Hardship or (b) the then value of such Participant’s Accounts. Such amount shall be paid in a single lump sum
payment as soon as administratively practicable after the Committee has made its determination with respect to the availability and amount of such Hardship benefit. If the Participant’s Accounts are deemed to be invested in more than one of the
Deemed Investments, such distribution shall be made pro rata from each of such Deemed Investments. In the event the Committee authorizes a hardship distribution hereunder, the Participant’s Employee 
 

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Contribution election (as well as eligibility to receive any Employer Contribution) shall cease on a
prospective basis and be suspended for the duration of the Plan Year and the next following Plan Year. 
 
5.7.    In-Service Distribution/Fixed Deferral Period.  At the time of making an election to defer
Compensation for a Plan Year pursuant to Section 3.2, the Participant may elect to receive an in-service distribution of the amount deferred under such election, together with any Company Contributions for the same Plan Year and any hypothetical
accruals on these deferral/contributions, in a lump sum at any time beginning after the second anniversary of the last day of the Plan Year in which the amount deferred was earned. A Participant may subsequently elect to modify (or revolve) such
in-service distribution election by filing an acceptable election with the Committee, in a manner approved by the Committee, at least twelve months prior to such newly elected distribution date, or at such other times as determined by the Committee.
Notwithstanding any In-Service Distribution/Fixed Deferral Period election made by a Participant hereunder, the Company may modify any such election in the event that maintaining such elections) becomes administratively/operationally burdensome.

 
5.8.    In-Service
Distribution/Ten Percent Penalty.  A Participant may elect to have his or her Account (or portion thereof) paid as soon as possible upon his or her election. For purposes of this Section, the value of the Participant’s Account shall
be determined as of the date of the distribution. Any amount paid pursuant to this Section shall be subject to a ten percent (10%) penalty, with the amount of the penalty permanently forfeited from the Participant’s Account and held in a
forfeiture account in any grantor trust established by the Employer as part of the Plan, or returned to the Employer (and if such Plan assets are held in a grantor trust, returned to the Employer if permitted under the terms of such grantor trust).
Any Participant wishing to elect an immediate distribution must complete a special distribution form and return it to the Committee. The distribution shall occur as soon as is administratively feasible following the Committee’s processing of
this election form. Following such distribution, the Participant’s Employee Contribution election (as well as eligibility to receive any Employer Contribution) shall cease on a prospective basis and be suspended for the duration of the Plan
Year and the next following Plan Year. 
 
5.9.    Distribution to Directors.  As soon as practicable after a Participant who is a Director ceases to be a Director (and is not otherwise an employee of the Company) for any reason, the Company
shall distribute the value of such Participant’s Account in such form as previously elected by the Director. If no effective distribution election form exists, as determined in the sale discretion of the Committee, the Participant’s
Account will be distributed in the form of a lump-sum payment. 
 
5.10.    Nature of Payments.  Distributions under the Plan shall be made in cash (or Varco International, Inc. common stock to the extent any of the Participant’s Deemed Investments are credited
with such stock). 
 
5.11.    Old Varco Deferred Compensation Plan Accounts.  Each Participant who previously participated in the old Varco Deferred Compensation Plan and whose benefits thereunder were transferred into this
Plan shall be eligible to elect the form of distribution of such amounts upon his termination of employment. In addition, any election to receive an “in-service distribution” under the terms of the old Varco Deferred Compensation Plan
shall be continued under the terms of this Plan. Any such Participant may subsequently elect to modify or revoke such in-service distribution election, or make an election where no such election had previously been made (or change the form of such
distribution upon termination of his employment) by filing an acceptable election with the Committee. Any such election must be made in a manner approved by the Committee, at least twelve months prior to the effective date of such change, or at such
other times as determined by the Committee. Notwithstanding any in-service distribution election made by a Participant hereunder, the Company may modify any such election in the event that maintaining such election(s) becomes
administratively/operationally burdensome. 
 

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5.12.    Old Tuboscope, Inc. Deferred Compensation Plan Accounts.  Each Participant who previously participated in the old Tuboscope, Inc. Deferred Compensation Plan shall be eligible to elect to receive
the form of distribution upon his termination of employment with respect to the value of such Account (determined as of December 31, 2002), adjusted for any hypothetical accruals thereafter (“Old Tuboscope Account”), by filing an
acceptable election with the Committee, in a manner approved by the Committee. Such Participant may subsequently change the form of such distribution by filing with the Committee a new distribution election form at least 12 months prior to the
effective date of such change. In addition, any such Participant may make an in-service distribution election with respect to such Participant’s Old Tuboscope Account by filing an acceptable election with the Committee. Any such election must
be made in a manner approved by the Committee, at least 12 months prior to the effective date of such change, or at such other times as determined by the Committee. Notwithstanding any in-service distribution election made by a Participant
hereunder, the Company may modify any such election in the event that maintaining such election becomes administratively/operationally burdensome. 
 

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ARTICLE VI

Committee 
 
6.1.    Authority.  The Committee shall have the authority, subject to the provisions of the Plan, to
establish, adopt and revise such rules and regulations, to provide and modify administrative forms, and to make all such determinations relating to the plan as it may deem necessary or appropriate for the administration of the Plan. The Committee
may correct any defect or supply any omission or reconcile any inconsistency in this Plan or any agreement or document related to this Plan in the manner and to the extent the Committee deems necessary or appropriate to carry this Plan into effect.
The Committee’s interpretation of the Plan, and all decisions and determinations by the Committee with respect to the Plan, shall be final and binding on all parties. To the extent Plan distributions are payable in a form other than a single
lump sum (e.g., installments), the Committee shall determine the methodology for computing such payments. 
 
6.2.    Delegation of Authority.  The Committee may delegate any of its powers or responsibilities to one or
more members of the Committee or any other person or entity. 
 
6.3.    Procedures.  The Committee may establish procedures to conduct its operations and to carry out its rights and duties under the Plan. 
 
6.4.    Selection of Participants.  With respect to each Plan Year or portion
thereof, the President of the Employer shall select, in its discretion, those employees and Directors of the Company approved to participate in the Plan, which individuals will then become Participants hereunder. Any such person who is an employee
must be determined by the President of the Employer to be a member of a select group of key employees or highly compensated employees of the Company. 
 
6.5.    Compensation and Expenses.  The members of the Committee shall serve without compensation for their
services, but all expenses of the Committee and all other expenses incurred in administering the Plan shall be paid by the Company. 
 
6.6.    Indemnification.  The Company shall indemnify the members of the Committee and/or any of their
delegates against the reasonable expenses, including attorneys’ fees, actually and appropriately incurred by them in connection with the defense of any action, suit or proceeding, or in connection with any appeal thereto, to which they or any
of them may be a party by reason of any action taken or failure to act under or in connection with the Plan and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the
Company) and against all amounts paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in a suit of final adjudication that such Committee member is liable
for fraud, deliberate dishonesty or willful misconduct in the performance of his duties; provided that within 60 days after the institution of any such action, suit or proceeding a Committee member has offered in writing to allow the Company, at its
own expense, to handle and defend any such action, suit or proceeding. 
 

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ARTICLE VII

Amendment and Termination 
 
7.1.    Power to Amend and/or Terminate Reserved.  The Employer retains the
unilateral power to amend the Plan, or to terminate the Plan at any time. Without the consent of affected Participant or Beneficiary, no such amendment or termination shall adversely affect any Participant or Beneficiary with respect to any right
accrued hereunder prior to the date that the Plan amendment or termination is adopted or by its terms to be effective. 
 

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ARTICLE VIII

Miscellaneous 
 
8.1.    Plan Does Not Affect the Rights of Employee.  Nothing contained in this Plan shall be deemed to give
any Participant the right to be retained in the employment of the Company, to interfere with the rights of the Company to discharge any Participant at any time or to interfere with a Participant’s right to terminate his employment at any time.

 
8.2.    Nonalienation and
Nonassignment.  Except for debts owed the Company by a Participant or Beneficiary, no amounts payable or to become payable under the Plan to a Participant or Beneficiary shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge, whether voluntary, involuntary, by operation of law or otherwise, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same by a Participant or
Beneficiary prior to distribution as herein provided shall be null and void. 
 
8.3.    Tax Withholding on Payments.  The Company shall have the right to deduct from any payments to a Participant or Beneficiary under the Plan any taxes required by law
to be withheld with respect to such payments. 
 
8.4.    FICA Withholding/Employee Contributions/Employer Contributions.  For each payroll period, the Company shall withhold from that portion of the Participant’s Compensation that is not being
deferred under this Plan, the Participant’s share of FICA and other applicable taxes that are required to be withheld with respect to (i) Employee Contributions, and (ii) Employer Contributions as they vest and become subject to such FICA
withholding. To the extent that there are insufficient funds to satisfy all applicable tax withholding requirements in a timely manner, the Company reserves the right to reduce the Participant’s Employee Contributions, or in the absence of such
contributions, to withhold from the Participant’s Compensation. To the extent there are still insufficient funds to satisfy all such applicable tax withholding requirements, the Participant agrees to timely remit cash funds to the Company
sufficient to cover such withholding requirements. 
 
8.5.    Setoffs.  To the fullest extent permitted by law, any amounts owed by a Participant or Beneficiary to the Company may be deducted by the Company from such Participant’s Account at the time
and to the extent that such Account is otherwise payable hereunder. 
 
8.6.    Construction.  Unless the context clearly indicates to the contrary, the masculine gender shall include the feminine and neuter, and the singular shall include the plural and vice versa.

 
8.7.    Applicable
Law.  The terms and provisions of the Plan shall be construed in accordance with the laws of the State of Texas, unless preempted by ERISA. 
 
8.8.    Successors.  The Plan shall be binding upon the Company and its successors and assigns, in
accordance with its terms. 
 
8.9.    Claims Procedure.  A Participant or Beneficiary may make a claim for Plan benefits by filing a written application for benefits with the Committee. Such application shall set forth the nature of
the claim and any other information that the Committee may reasonably request. The Committee shall notify the applicant of the benefits determination within a reasonable time after receipt of the claim, which shall not exceed 90 days unless special
circumstances require an extension of time for processing the claim. If such an extension is required, written notice of the extension shall be furnished to the applicant prior to the end of the initial 90-day period. In no event shall such an
extension exceed a period 
 

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of 90 days from the end of the initial period. The extension notice shall indicate the special
circumstances requiring an extension of time, and the date by which a final decision is expected to be rendered. 
 
Notice of a claim denial, in whole or in part, shall be set forth in a manner calculated to be understood by the applicant and shall
contain the following: 
 
(a)  the specific reason or reasons for the denial; and 
 
(b)  a specific reference to the pertinent Plan provisions on which the denial is based; and 
 
(c)  a description of any
additional material or information necessary for the applicant to perfect the claim and an explanation of why such material or information is necessary; and 
 
(d)  an explanation of the Plan’s claims review procedure. 
 
Participants shall be given timely written notice of the time
limits set forth herein for determinations on claims, appeal of claim denial and decisions on appeal. If notice of a claim determination is not provided within the applicable time frame described above, the claim shall be deemed denied and the
applicant may appeal the denial as set forth below. 
 
If a written claim results in a claim denial, either in whole or in part, the applicant has the right to appeal. The appeal must be in writing. The administrative process for appealing a claim is: 
 
(e)  Upon receipt of a claim
denial, a Participant may file a written request, including any additional information supporting the claim, for reconsideration to the Committee within 60 days of receiving notification that the claim is denied. 
 
The Committee normally shall render a
decision no later than 60 days following receipt of the request for review. The Participant may request a formal hearing before the Committee which the Committee may grant in its discretion. Under special circumstances which require an extension of
time for rendering a decision (including but not limited to the need to hold a hearing), the decision may be delayed up to 120 days following receipt of the request for review. If such an extension is required, the Participant will be advised in
writing before the extension begins. 
 
The Committee will provide written notice of its final determination. The notice will include specific reasons for the decision, be written in a manner calculated to be understood by the Participant and make specific reference to the
Plan provisions on which it is based. 
 
An appeal
will not be considered if it is not filed within the applicable period of time. If a decision on an appeal is not provided within any applicable time frame described above, the claim shall be deemed denied on appeal. 
 
At any stage in the appeals process, the applicant or his or
her designated representative may review pertinent documents, including copies of the Plan document and information relating to the applicant’s entitlement to such benefit, and submit issues and comments in writing. 
 
8.10.    Claims/Disputes.  Any
dispute or claim arising out of this Plan or the breach thereof, which is not settled under the Plan’s administrative claims procedure and which is pursued beyond such claims procedure, shall be brought in Federal District Court, in Harris
County, Texas. 
 

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8.11.    Release/Full Payment.  Any Plan payment (i.e., lump sum, or, if installments, the first such installment payment) to any Participant or Beneficiary under the Plan shall be in full satisfaction
of all claims against the Company, the Committee, the Trustee under any Rabbi Trust established here under the Plan, and any of their agents, lawyers, employees, officers, and the Committee may require such Participant or Beneficiary as a condition
precedent to the receipt of such Plan payment (i.e., lump sum, or, if installments, the first such installment payment) to execute a receipt and release to such effect. 
 
8.12.    Termination of the Plan.  As soon as possible following the
termination of the Plan, each Participant shall be paid his or her entire Account balance in a single lump sum, notwithstanding any other distribution election then in effect. 
 
8.13.    No funding.  The Plan constitutes a mere promise by the Company to
make payments in accordance with the terms of the Plan and Participants and Beneficiaries shall have the status of general unsecured creditors of the Company. Nothing in the Plan will be construed to give any employee, Director or any other person
rights to any specific assets of the Company or of any other person. In all events, it is the intent of the Company that the Plan be treated as unfunded for tax purposes and for purposes of Title I of ERISA. 
 
8.14.    Entire Agreement.  This
Plan document constitutes the entire Plan governing the Company and the Participant with respect to the subject matters hereof and supercedes all prior written and oral and all contemporaneous written and oral agreements and understandings, with
respect to the subject matters herein. This Plan may not be changed orally, but only by an amendment in writing signed by the Company, subject to the provisions in this Plan regarding amendments thereto. 
 

15 

 
IN WITNESS
WHEREOF, Varco International, Inc. has caused this Plan to be executed by its duly authorized officer, effective as of January 1, 2003. 
 
 

	 VARCO INTERNATIONAL., INC.

	
	 By:
	 	 /s/    JAMES F.
MARONEY III        

	
	 Name:
	 	 James F. Maroney III

	
	 Title:
	 	 Vice President

	
	 Date:
	 	 January 3, 2003

 
ATTEST:

 
By: Authorized Signatory  

 
Title: Ass’t
Secretary 

 

16Amendment and Restatement of Supplemental Executive Retirement

  Exhibit 10.6
  AMENDMENT AND RESTATEMENT OF THE
 VARCO INTERNATIONAL, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
(Effective as of November 15, 2001)

   AMENDMENT AND RESTATEMENT OF THE
 
 VARCO INTERNATIONAL, INC.
 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 (Effective as of November 15, 2001)
  ARTICLE I
 PURPOSE
AND DEFINITIONS
            1.01     Purpose and Effect of Amendments.  The purpose of this VARCO
INTERNATIONAL, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (the “Plan”) is to provide supplemental pension benefits to certain employees of VARCO INTERNATIONAL, INC. (the “Company”).  The Plan was originally effective
January 1, 1991, and replaced and superseded any prior non-qualified Supplemental Executive Retirement Plans then in effect.
            Pursuant to the Agreement and Plan of Merger, dated as of March 22, 2000, between Tuboscope Inc., a Delaware corporation (“Tuboscope”), and Varco
International, Inc., a California corporation (“Old Varco”), Old Varco was merged with and into Tuboscope effective as of May 30, 2000.  Effective upon the merger, Tuboscope, as successor to the merger, was renamed “Varco
International Inc.” and succeeded to the obligations of Old Varco under the Plan.  The “Company,” as used herein, refers to Varco International, Inc., a Delaware corporation and the surviving corporation in such merger on and
after May 30, 2000 and refers to Old Varco before May 30, 2000.
            The Plan is hereby amended and restated effective as of November 15,
2001 (the “Effective Date”).  The terms of the Plan, as so amended and restated on the Effective Date, shall apply to each Participant who is an employee of the Company or one of its subsidiaries on or after the Effective Date and is
listed on Exhibit A hereto.  The terms of the Plan in effect prior to the Effective Date shall continue to apply to all other Participants in the Plan and listed on Exhibit B hereto.
           1.02     Definitions.  The following terms have the meanings set forth below.

	  
 	  (a)
 	  “Administrator” means the officer or officers to which administrative duties and responsibilities under the Plan may be delegated by the Committee under
Article V.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “Board” means the Board of Directors or governing body that has the authority to bind the Company.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  “Change in Control” means (i) any person or persons acting in concert becoming the beneficial owner, directly or indirectly, of securities of the Company representing
forty (40%) percent or more of the total voting power of all of its then outstanding voting securities, (ii) a merger or consolidation of the Company in which (x) the voting securities of the Company immediately prior to the merger or consolidation
do not represent, or are not converted into, securities that represent, a majority of the voting power of all voting securities of the surviving entity immediately after the merger or consolidation or (y) individuals who were directors of the
Company immediately prior to the effectiveness of such merger or
 

	  
 	  
 	 consolidation do not constitute a majority of the Board of Directors of the surviving entity immediately after the merger or consolidation, (iii) a sale of substantially all of
the assets of the Company (other than a sale to one or more subsidiaries of the Company), (iv) a liquidation or dissolution of the Company, or (v) individuals who, as of May 18, 2000, constituted the Board of Directors (the “Incumbent
Board”) cease (for any reason other than death) to constitute at least a majority of such Board; provided that any individual who becomes a director of the Company subsequent to May 18, 2000, whose election, or nomination for election by the
Company’s stockholders, was approved by the vote of at least a majority of the directors then in office shall be deemed a member of the Incumbent Board.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  “Committee” means the Compensation Committee of the Board of Directors in charge of administering the Plan, as provided in Article V.
 
	  
 	  
 	  
 
	  
 	  (e)
 	  “Company” means Varco International Inc., a Delaware corporation, and any successor entity.
 
	  
 	  
 	  
 
	  
 	 (f)
 	  “Disability” means a physical or mental condition sufficient to initially qualify the Participant for benefits pursuant to the terms of the Company’s group
long-term disability insurance plans then in force and effect.
 
	  
 	  
 	  
 
	  
 	  (g)
 	  “Early Retirement” means the date a Participant retires from employment with the Company and its subsidiaries after attaining age 55 (and prior to attaining age
65).
 
	  
 	  
 	  
 
	  
 	  (h)
 	  “Normal Retirement” means the date a Participant retires from employment with the Company and its subsidiaries after attaining age 65.
 
	  
 	  
 	  
 
	  
 	  (i)
 	  “Participant” means an employee who has met the participation requirements of Article II of this Plan.
 
	  
 	  
 	  
 
	  
 	 (j)
 	  “Plan” means the Amendment and Restatement of the Varco International, Inc. Supplemental Executive Retirement Plan, as contained herein, as the same may be amended
and/or restated from time to time.
 
	  
 	  
 	  
 
	  
 	  (k)
 	  “Retirement” means a Participant’s Early Retirement or Normal Retirement.
 
	  
 	  
 	  
 
	  
 	  (l)
 	  “Spouse” means the person to whom benefits under this Plan are to be paid in the event of the death of the Participant, in the following order:  (i) the spouse of
a Participant who is legally married to the Participant on the date of the Participant’s death, and if no person is so legally married to the Participant at such time or in the event of the prior death of the spouse of the Participant; then
(ii) to the beneficiary designated by the Participant on any Company approved form, and if no beneficiary has been so designated; then (iii) to the person(s) entitled to benefits under the Participant’s will or the laws of descent and
distribution, as applicable.
 
	  
 	  
 	  
 
	  
 	  (m)
 	  “Trust Agreement” means the agreement, if any, reached between the Company and the Trustee for the administration of the Trust Fund.
 

 3

	  
 	  (n)
 	  “Trust” means the trust, if any, established by the Company for purposes of holding all contributions used to fund the benefits provided by the Plan.
 
	  
 	  
 	  
 
	  
 	  (o)
 	  “Trustee” means the Trustee named in the Trust Agreement, or any successor thereof.
 
	  
 	  
 	  
 
	  
 	  (p)
 	  “Years of Service” means, with respect to a Participant, the number of calendar years in which such Participant completes 1,000 or more hours of service as an employee
with the Company and/or its subsidiaries.  For purposes of this subsection, a Participant’s employment with Tuboscope and its subsidiaries (and their predecessors), or a Participant’s employment with Old Varco and its subsidiaries
(and their predecessors) prior to May 30, 2000, shall be treated as employment with the Company and its subsidiaries.
 

  ARTICLE II
 ELIGIBILITY AND
PARTICIPATION
            2.01     Eligibility.  Each employee who is an executive officer of the
Company and is designated by the Board for eligibility in this Plan will be eligible to become a Participant with respect to the benefits provided under Article III.
           2.02     Participation.  Each employee who is eligible to become a Participant under Section 2.01 will become a
Participant at the time he is designated a Participant by the Board and such employee acknowledges the terms of such employee’s participation in the Plan in writing on a form provided by the Committee.  
            In addition, the employees who hold the following positions on the Effective Date shall become Participants effective as of the Effective Date:  Chairman and
Chief Executive Officer; President and Chief Operating Officer; Executive Vice President and Chief Financial Officer; President, Drilling Equipment; President, Services; Vice President and General Counsel; Vice President, Human Resources and
Administration; and Vice President, Corporate Development.  The employees who hold such positions as executive officers of the Company as of the Effective Date are listed on Exhibit A hereto.  
            2.03     Termination of Participation.  A Participant’s participation hereunder will terminate when all of his benefits
under the Plan have been paid in full.
  4

   ARTICLE III
 BENEFITS
            3.01     Benefits for Normal Retirement  

	  
 	  (a)
 	  Upon Normal Retirement, each Participant shall have a nonforfeitable right to receive a supplemental pension benefit of an annual fixed dollar amount equal to 50% of the average
of such Participant’s highest (not necessarily consecutive) five calendar years of base salary from the Company and/or its subsidiaries, except as provided in Section 3.02(c).  The base salary of a Participant for employment during any
calendar year that is greater than six months but less than the full calendar year shall be annualized for purposes of these calculations.  For example, if an Employee who is 100% vested and who turns 65 on August 1, 1997, wants to retire at
that time, and he earned a base salary of $110,000 in 1993, $115,000 in 1994, $120,000 in 1995, $125,000 in 1996, and $130,000 annualized for 1997, for a total of $600,000.  His average base salary for his highest five calendar years would be
$120,000.  His annual benefit would be 50% of $120,000 or $60,000 ($5,000 per month).  This annual benefit is a guaranteed benefit payable for 120 months to the Participant and, in the event of his death prior to receiving 120 payments,
the remaining payments would continue to his Spouse until a total of 120 payments have been made.  Notwithstanding the forgoing, if the Participant is hired after attaining age 50, the amount otherwise payable shall be multiplied by a fraction
in which the numerator is Years of Service at Normal Retirement and the denominator is 15.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  For purposes of this Section, a Participant’s base salary from employment with Tuboscope and its subsidiaries (and their predecessors), or from Old Varco and its
subsidiaries prior to May 30, 2000, shall be treated as base salary from the Company and its subsidiaries (and their predecessors).
 

            3.02     Benefits for Early Retirement or Termination of Employment Prior to Normal Retirement

	  
 	  (a)
 	  Upon Early Retirement, or other termination of employment prior to reaching Normal Retirement, each Participant shall have a non-forfeitable right to receive the vested portion
of the benefit for Normal Retirement set forth in Section 3.01, except that such benefit shall be pro-rated for actual service by multiplying the benefit determined pursuant to Section 3.01 by a fraction:  The numerator of this fraction is
Years of Service at the earlier of Early Retirement or other termination of employment, and the denominator is Years of Service at age 65 (determined assuming that such Participant accrued a Year of Service for the calendar year of such
Participant’s Early Retirement or other termination of employment and each subsequent calendar year until age 65).
 
	  
 	  
 	  
 
	  
 	  (b)
 	  The pro-rated benefit provided by Section 3.02(a) shall be payable at age 65, unless the Participant reaches age 55 and elects to begin receiving his benefit at or after that
time.  If a Participant elects to begin receiving his benefit at or after age 55 and prior to age 65, such benefit shall be further reduced by 5% per year compounded, for each year benefits commence prior to age 65.  Such 5% per
year
 

 5

	  
 	  
 	  reduction shall be applied pro-rata on a monthly basis for any period of less than a year.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Notwithstanding anything herein to the contrary, in the event of a termination of employment of a Participant prior to reaching Normal Retirement or in the event of
the Early Retirement of a Participant, in each case, following a Change in Control:
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  for a Change in Control that occurs in the period from January 1, 2001 through and including January 1, 2006, such Participant’s benefits hereunder shall be determined
based on 50% of the greater of:  (A) the average of such Participant’s highest five (not necessarily consecutive) calendar years of base salary as determined in accordance with Section 3.01(a) above; or (B) the average of such
Participant’s base salary since January 1, 2001; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  such Participant’s benefits hereunder shall not be prorated for service as described above in Section 3.02 (a).  However, in the event any payments hereunder will be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended, and the Company has not agreed to reimburse such Participant (or otherwise compensate or make such Participant whole) for such excise taxes
levied against the benefit payable to such Participant, the value of the increase in such benefit due to no prorating pursuant to 3.02(a) shall not be greater than three times such Participant’s base salary; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  Section 3.02(b) shall apply to such Participant.  Thus, benefits shall be payable at age 65 unless such Participant elects payment at or after age 55 pursuant to Section
3.02(b), in which case such Participant’s benefits shall be subject to the proration for early payments provided in Section 3.02(b).
 

            3.03     Benefits for Death.   In the event of the death of the Participant while employed, the Participant’s Spouse
shall have a non-forfeitable right to receive the Participant’s Normal Retirement benefit (not prorated pursuant to Section 3.02(a)) pursuant to Section 3.01, commencing at the time of death.
            3.04     Benefits for Long-Term Disability.  In the event of the Participant’s Disability while employed, the
Participant shall have a non-forfeitable right to receive the same benefit as a Normal Retirement benefit (not prorated pursuant to Section 3.02 (a)) pursuant to Section 3.01, but payable at age 65 or death, if earlier.  If the Participant
recovers from Disability before reaching age 65, he will be treated as Retired on the date of his recovery, unless he returns to work with the Company at such time.
           3.05     Benefit upon Termination of Supplemental Executive Retirement Plan.  In the event of the termination of the Plan,
each eligible Participant shall have a non-forfeitable right to receive the same benefits as if the Plan was not terminated.
            3.06     Time and Manner of Payment.   The benefits payable under the Plan will be paid as set forth herein:
  6

	  
 	  (a)
 	  Normal Retirement.  The benefit for Normal Retirement pursuant to Section 3.01 shall be payable in monthly installments beginning at age 65 for a period of 120
months guaranteed.  If a Participant dies before receiving 120 total payments, the Participant’s Spouse shall continue to receive payments until 120 payments have been made.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Early Retirement, Termination of Employment.  The benefit for Early Retirement or termination of employment pursuant to Section 3.02 shall be payable in monthly
installments for a period of 120 months guaranteed, beginning at age 65 or at such time the Participant elects earlier payments pursuant to Section 3.02(b).  If a Participant dies before receiving 120 total payments, the Participant’s
Spouse shall continue to receive payments until 120 payments have been made.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  Death. The benefit for Death pursuant to Section 3.03 shall be payable in monthly installments to the Participant’s Spouse beginning at the Participant’s
death, for a period of 120 months guaranteed.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  Long-Term Disability.  The benefit for Disability pursuant to Section 3.04 shall be payable in monthly installments beginning at age 65 or the
Participant’s death, if earlier, for a period of 120 months guaranteed.  If the Participant dies before receiving 120 total payments, the Participant’s Spouse shall continue to receive payments until 120 payments have been
made.
 

            3.07     Funding of Benefits.  The benefits payable under the Plan
may be funded by periodic contributions to a Trust based upon determinations made by an actuary.
  ARTICLE IV
 VESTING
            4.01     Vesting.  If a Participant’s employment service is terminated prior to Normal Retirement, he shall be entitled
to receive the vested percentage of his benefits pursuant to Article III in accordance with the following schedule:

	  Years of Service
 	   
 	  Vested 
 Percentage
 	   
 	  Forfeited 
 Percentage
 	   
 
	 
 	   
 	 
 	 
 	   
 	 
 	 
 	   
 
	 Less than 1
 	  
 	  
 	  0
 	  %
 	  
 	  100
 	  %
 
	  1 but less than 2
 	  
 	  
 	  10
 	  %
 	  
 	  90
 	  %
 
	 2 but less than 3
 	  
 	  
 	  20
 	  %
 	  
 	  80
 	  %
 
	  3 but less than 4
 	  
 	  
 	  30
 	  %
 	  
 	  70
 	  %
 
	  4 but less than 5
 	  
 	  
 	  40
 	  %
 	  
 	  60
 	  %
 
	 5 but less than 6
 	  
 	  
 	  50
 	  %
 	  
 	  50
 	  %
 
	  6 but less than 7
 	  
 	  
 	  60
 	  %
 	  
 	  40
 	  %
 
	  7 but less than 8
 	  
 	  
 	  70
 	  %
 	  
 	  30
 	  %
 
	  8 but less than 9
 	  
 	  
 	  80
 	  %
 	  
 	  20
 	  %
 
	 9 but less than 10
 	  
 	  
 	  90
 	  %
 	  
 	  10
 	  %
 
	  10 or more
 	  
 	  
 	  100
 	  %
 	  
 	  0
 	  %
 

  Notwithstanding the forgoing, in the event of a Change in Control, the
Participant shall be 100% vested in his benefit payable pursuant to Article III.
  7

   ARTICLE V
 ADMINISTRATION
            5.01     Administrative Powers and Duties.  The Committee shall administer the Plan.  The Committee may authorize one
or more officers of the Company to act on behalf of the Committee with respect to administration of the Plan (the “Administrator”), in coordination with and under the direction of the Committee. All policy and discretionary decisions will
be the responsibility of the Committee, and the Administrator will act under the direction of the Committee.  The Committee and Administrator will adopt rules that are consistent with Plan provisions.
           The Committee and/or the Administrator may retain auditors, accountants, legal counsel, and any other counsel it selects.  A Committee member or Administrator
may himself act in any such capacity, acting in a similar capacity for the Company, and may be an employee of the Company.  The opinion of any such auditor, accountant, legal counsel, or other counsel will be full and complete authority, and
the Committee and Administrator will be protected in respect to any action it takes or omits in good faith and in accordance with such opinion. 
            The Board may assume any or all of the responsibilities and powers of the Committee under the Plan at any time and from time to time.  If a Committee or Board
member is a Participant, he will not be allowed to vote on any decision that applies only to him or his Plan benefits.
            5.02     Expenses.  The Company will pay or reimburse the Committee and/or Administrator, as applicable, for all reasonable
expenses incurred by the Committee and Administrator in the administration of the Plan, including the fees and compensation for the persons referred to in the second paragraph of Section 6.01.
  ARTICLE VI
 MISCELLANEOUS PROVISIONS
            6.01     Employment and Other
Rights.  Nothing contained herein will require the Company to continue any Participant in its employ, or require any Participant to continue in the employ of the Company, nor does the Plan create any rights of any Participant or
Spouse, nor any obligations on the part of the Company, other than those set forth herein.  The benefits payable under this Plan will be independent of, and in addition to, any other agreements that may exist from time to time concerning any
other compensation or benefits payable by the Company.
            6.02     Right to Benefits.  The sole
interest of each Participant and each Beneficiary of a Participant under the Plan will be to receive the benefit provided herein as and when the same becomes due and payable in accordance with the terms hereof, and neither any Participant nor any
Beneficiary of the Participant will have any right, title, or interest in or to any of the specific assets of the company.  All benefits hereunder will be paid solely from the general assets of the Company, and the Company will not maintain any
separate fund or other segregated assets to provide any benefits hereunder.  In no manner will any assets of the Company be deemed or construed through any of the provisions of this Plan to be held in trust for the benefit of any Participant
or  Spouse or to be collateral security for the performance of the obligations imposed by this Plan on the Company.  The rights of any Participant hereunder and any Spouse of the Participant will be solely those of a general unsecured
creditor of the Company.
 8

             6.03     Amendment and Termination.  While the Company hopes to continue
this Plan indefinitely, the Plan may be amended, suspended, or terminated at any time by the Board or the Committee.  In the event it should at any time be determined for any reason by an applicable agency of the United States government or by
any court of applicable jurisdiction that the Plan does not qualify for the exclusion of ERISA Sections 201(2), 301(a)(3), and 401(a)(1), the affected portion of the Plan will be deemed terminated as of the date of such determination unless
alternative action is taken by the Board.  Notwithstanding the foregoing, no such amendment, suspension or termination of the Plan may in any way adversely alter or impair any of the rights of the then existing Participants under the
Plan.
            6.04     No Duty to Mitigate.  No Participant shall be required to mitigate the amount
of any benefit provided for in this Plan by seeking other employment or otherwise, nor shall the amount of any benefit provided for in this Plan be reduced by any compensation earned or benefit received by a Participant as a result of employment,
self-employment, retirement benefits or by offset against any amount claimed to be owed by Participant to the Company or otherwise.
  {Signature Page follows}
  9

   IN WITNESS WHEREOF, the Company has caused this amendment and restatement of the Plan to be signed by it duly authorized officer to be effective as of November 15,
2001.

	  
 	  VARCO INTERNATIONAL, INC.
 
	  
 	  
 	  
 
	  
 	 By:
 	 /s/  GEORGE BOYADJIEFF 
 
	  
 	  
 	 
 
	  
 	  
 	  George Boyadjieff,
 
	  
 	  
 	  Chairman of the Board and Chief Executive Officer
 
	
 
 	  And:
 	  /s/  JOHN F. LAULETTA
 
	  
 	  
 	 
 
	  
 	  
 	  John F. Lauletta,
 
	  
 	  
 	  President and Chief Operating Officer
 

  10

  EXHIBIT A
  AMENDMENT AND RESTATEMENT OF THE
 VARCO INTERNATIONAL, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 (Effective as of November 15, 2001)
  Executive Officers of the Company who are Participants as of the Effective Date
 and are
entitled to the benefits set forth in this Amendment and Restatement
 of the Supplemental Executive Retirement Plan (Effective as of November 15, 2001)
  George
Boyadjieff
  John F. Lauletta
  Joseph C. Winkler
  Michael W. Sutherlin
  Haynes B. Smith
  James F. Maroney, III
 
Kenneth L. Nibling
  Clay C. Williams

   EXHIBIT B
  AMENDMENT AND RESTATEMENT OF THE
VARCO INTERNATIONAL, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 (Effective as of November 15, 2001)
  Other Participants Who Are Entitled Only To the Benefits set forth in
 the Supplemental
Executive Retirement Plan prior to its
 Amendment and Restatement Effective as of November 15, 2001
  Roderick Abbott
  Robert DeVries
  Robert Gondek
  Mark Merit
  Roger Morgan
  Jerry Gill
  Theresa Hope-Reese
 Maurice Jacques
 Richard Kertson
 Donald Stichler

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