Document:

exv4w21

 

Exhibit 4.21

RESTRICTED STOCK AWARD AGREEMENT

(Tandem Tax Rights)

     This Restricted Stock Award Agreement (this “Agreement”) is made by and between Grant
Prideco, Inc., a Delaware corporation (the
“Company”), and _________ (the “Executive”) as of the
___day of ___, 200___(the
“Effective Date”), pursuant to the ___(the “Plan”), the terms
of which are incorporated by reference herein in their entirety. For purposes of this Agreement,
“Grant Date” shall mean ___.

     Whereas, the Company desires to grant to the Executive the shares of equity
securities specified herein (the “Shares”) and a cash bonus to enable the Executive to pay all
taxes payable by the Executive as a result of his receipt of the Shares, subject to the terms and
conditions of this Agreement; and

     Whereas, the Executive desires to have the opportunity to hold the Shares and earn
the cash bonus described above, subject to the terms and conditions of this Agreement;

     Now, therefore, in consideration of the premises, mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows:

	1.  	Grant of Restricted Shares. Effective as of the Grant Date, the Company shall cause to be
issued in the Executive’s name the following Shares as Restricted Shares: ___shares of
the Company’s common stock, $.01 par value. The Company shall cause certificates evidencing
the Restricted Shares, and any Retained Distributions issued with respect to the Restricted
Shares, to be issued in the Executive’s name. During the Restricted Period such certificates
shall bear a restrictive legend to the effect that ownership of such Restricted Shares (and
any such Retained Distributions), and the enjoyment of all rights appurtenant thereto, are
subject to the restrictions, terms, and conditions provided in the Plan and this Agreement.
The Executive shall have the right to vote the Restricted Shares awarded to the Executive and
to receive and retain all regular cash dividends, and to exercise all other rights, powers and
privileges of a holder of Shares, with respect to such Restricted Shares, with the exception
that (a) the Executive shall not be entitled to delivery of the stock certificate or
certificates representing such Restricted Shares until the Forfeiture Restrictions applicable
thereto shall have expired, (b) the Company shall retain custody of all Retained Distributions
made or declared with respect to the Restricted Shares (and such Retained Distributions shall
be subject to the same restrictions, terms and conditions as are applicable to the Restricted
Shares) until such time, if ever, as the Restricted Shares with respect to which such Retained
Distributions shall have been made, paid, or declared shall have become vested, and such
Retained Distributions shall not bear interest or be segregated in separate accounts and (c)
the Executive may not sell, assign, transfer, pledge, exchange,

 

 

	   	encumber, or dispose of the Restricted Shares or any Retained Distributions during the
Restricted Period. Upon issuance the certificates for the Restricted Shares shall be
delivered to the Secretary of the Company or to such other depository as may be designated
by the Committee as a depository for safekeeping until the forfeiture of such Restricted
Shares occurs or the Forfeiture Restrictions lapse, together with stock powers or other
instruments of assignment, each endorsed in blank, which will permit transfer to the Company
of all or any portion of the Restricted Shares and any securities constituting Retained
Distributions which shall be forfeited in accordance with the Plan and this Agreement. In
accepting the award of Shares set forth in this Agreement the Executive accepts and agrees
to be bound by all the terms and conditions of the Plan and this Agreement.
	 
	2.  	Definitions. For purposes of this Agreement, the following terms shall have the meanings
indicated below:

	 	(a)  	“Affiliate” shall mean an Entity that is required to be treated as a single
employer together with the Company for certain benefit plan purposes under section 414
of the Code.
	 
	 	(b)  	“Assets” shall mean assets of any kind owned by the Company, including, but not
limited to, securities of the Company’s direct and indirect subsidiaries.
	 
	 	(c)  	“Beneficial Owner” means a “beneficial owner” as defined in Securities and
Exchange Commission Regulation Section 240.13d-3.
	 
	 	(d)  	“Board” shall mean the Board of Directors or other governing body of the
Company or its direct or indirect parent.
	 
	 	(e)  	“Change of Control” shall mean the occurrence of any of the following events:

	 	(i)  	the individuals who are Incumbent Directors cease for any
reason to constitute a majority of the members of the Board;
	 
	 	(ii)  	the consummation of a Merger of the Company or an Affiliate
with another Entity, unless the individuals and Entities who were the
Beneficial Owners of the Voting Securities of the Company outstanding
immediately prior to such Merger own, directly or indirectly, at least 55
percent (55%) of the combined voting power of the Voting Securities of any of
the Company, the surviving Entity or the parent of the surviving Entity
outstanding immediately after such Merger;
	 
	 	(iii)  	any Person becomes a Beneficial Owner, directly or indirectly,
of securities of the Company representing 30 percent (30%) or more of the
combined voting power of the Company’s then outstanding Voting Securities,
other than a Specified Owner;
	 
	 	(iv)  	a sale, transfer, lease or other disposition of all or
substantially all of the Assets is consummated (an “Asset Sale”), unless:

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	 	(A)  	the individuals and Entities who were the
Beneficial Owners of the Voting Securities of the Company immediately
prior to such Asset Sale own, directly or indirectly, 55 percent (55%)
or more of the combined voting power of the Voting Securities of the
Entity that acquires such Assets in such Asset Sale or its parent
immediately after such Asset Sale in substantially the same proportions
as their ownership of the Company’s Voting Securities immediately prior
to such Asset Sale; or
	 
	 	(B)  	the individuals who comprise the Board
immediately prior to such Asset Sale constitute a majority of the board
of directors or other governing body of either the Entity that acquired
such Assets in such Asset Sale or its parent (or a majority plus one
member where such board or other governing body is comprised of an odd
number of directors or members); or

	 	(v)  	the stockholders of the Company approve a plan of complete
liquidation or dissolution of the Company.

	 	(f)  	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	(g)  	“Disability” shall have the meaning set forth in the Plan.
	 
	 	(h)  	“Entity” shall mean any corporation, partnership, association, joint-stock
company, limited liability company, trust, unincorporated organization or other
business entity.
	 
	 	(i)  	“Executive’s Employment Agreement” shall mean a written employment agreement
entered into between the Company or any of its Affiliates and the Executive that is in
effect as of the date of this Agreement as well as immediately prior to the termination
of the Executive’s employment with the Company and all of its Affiliates.
	 
	 	(j)  	“Forfeiture Restrictions” shall mean any prohibitions and restrictions set
forth herein with respect to the sale or other disposition of Shares issued to the
Executive hereunder and the obligation to forfeit and surrender such shares to the
Company.
	 
	 	(k)  	“General Vesting Date” shall mean the earlier of (i) the ninth anniversary of
the Grant Date or (ii) the date a Change of Control occurs.
	 
	 	(l)  	“Incumbent Director” shall mean –

	 	(i)  	a member of the Board on January 1, 2004; or
	 
	 	(ii)  	an individual-

	 	(A)  	who becomes a member of the Board after January
1, 2004;

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	 	(B)  	whose appointment or election by the Board or
nomination for election by the Company’s stockholders is approved or
recommended by a vote of at least two-thirds (2/3) of the then serving
Incumbent Directors; and
	 
	 	(C)  	whose initial assumption of service on the
Board is not in connection with an actual or threatened election
contest.

	 	(m)  	“Merger” shall mean a merger, consolidation or similar transaction.
	 
	 	(n)  	“Performance Peer Group” shall mean the companies listed on Exhibit A
attached hereto; provided, however, that if after the Grant Date a company listed on
Exhibit A merges or consolidates with another company, is acquired or disposes
of a significant portion of its businesses as they exist on the Grant Date or
experiences any event or circumstance as determined by the Committee in its sole
discretion, the Committee may adjust (by adding, subtracting or replacing) the
companies listed on Exhibit A (by amending and replacing such Exhibit
A) to address any such change or event or circumstance as the Committee determines,
in its sole discretion.
	 
	 	(o)  	“Performance Period” shall mean a period beginning on the Grant Date and ending
on a TSR Performance Testing Date, so that each succeeding Performance Period (after
the first Performance Period) will be one year longer than the immediately preceding
Performance Period.
	 
	 	(p)  	“Person” shall mean any individual, entity or group that is a “person” within
the meaning of Section 3(a)(9), 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended.
	 
	 	(q)  	“Restricted Period” shall mean the period designated by the Committee during
which Restricted Shares may not be sold, assigned, transferred, pledged, or otherwise
encumbered.
	 
	 	(r)  	“Restricted Shares” shall mean Shares that are subject to the Forfeiture
Restrictions under this Agreement.
	 
	 	(s)  	“Retained Distributions” shall mean any securities or other property (other
than regular cash dividends) distributed by the Company in respect of Restricted Shares
during any Restricted Period.
	 
	 	(t)  	“Retirement” shall mean retirement in good standing from the employ of the
Company and all of its Affiliates under the then-established rules of the Company.
	 
	 	(u)  	“Specified Owner” means any of the following:

	 	(i)  	the Company;

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	 	(ii)  	an Affiliate;
	 
	 	(iii)  	an employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliate;
	 
	 	(iv)  	a Person that becomes a Beneficial Owner of the Company’s
outstanding Voting Securities representing 30 percent (30%) or more of the
voting power of the Company’s then outstanding Voting Securities as a result of
the acquisition of securities directly from the Company and/or its Affiliates;
or
	 
	 	(v)  	a Person that becomes a Beneficial Owner of the Company’s
outstanding Voting Securities representing 30 percent (30%) or more of the
combined voting power of the then outstanding Voting Securities of the Company
as a result of a Merger if the individuals and Entities who were the Beneficial
Owners of the Voting Securities of the Company outstanding immediately prior to
such Merger own, directly or indirectly, at least 55 percent (55%) of the
combined voting power of the Voting Securities of any of the Company, the
surviving entity or the parent of the surviving entity outstanding immediately
after such Merger in substantially the same proportions as their ownership of
the Voting Securities of the Company outstanding immediately prior to such
Merger.

	 	(v)  	“Total Shareholder Return” shall mean the total shareholder return for the
common stock of the Company or applicable stock of the member of the Performance Peer
Group, taking into account cash and stock dividends, stock splits and other dividends
and distributions and recapitalizations during the applicable period, as calculated and
using methodologies determined by the Committee in its sole discretion, for the period
beginning on the date hereof and ending on the applicable TSR Performance Testing Date.
	 
	 	(w)  	“TSR Performance Testing Date” shall mean each anniversary date of the Grant
Date beginning with the third anniversary of the Grant Date through the eighth
anniversary of the Grant Date.
	 
	 	(x)  	“Voting Securities” shall mean the outstanding securities entitled to vote
generally in the election of directors or other governing body.

Capitalized terms not otherwise defined in this Agreement shall have the meanings given to
such terms in the Plan.

	3.  	Transfer Restrictions. The Shares granted hereby may not be sold, assigned, pledged,
exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than by
will or the applicable laws of descent and distribution) to the extent then subject to the
Forfeiture Restrictions. Any such attempted sale, assignment, pledge, exchange,
hypothecation, transfer, encumbrance or disposition in violation of this Agreement shall be
void and the Company shall not be bound thereby. Further, the Shares granted hereby that are
no longer subject to Forfeiture Restrictions may not be sold or otherwise disposed

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of in any manner that would constitute a violation of any applicable federal or state
securities laws. The Executive also agrees (a) that the Company may refuse to cause the
transfer of the Shares to be registered on the applicable stock transfer records if such
proposed transfer would in the opinion of counsel satisfactory to the Company constitute a
violation of any applicable securities law and (b) that the Company may give related
instructions to the transfer agent, if any, to stop registration of the transfer of the
Shares.

	4.  	Vesting. The Shares that are granted hereby shall be subject to Forfeiture Restrictions.
The Forfeiture Restrictions shall lapse as to the Shares that are granted hereby in accordance
with the provisions of subsections (a) through (e) of this Section 4.

	 	(a)  	Generally. The Forfeiture Restrictions shall lapse as to the Shares that are
granted hereby on the General Vesting Date, provided that the Executive’s employment
with the Company and all of its Affiliates has not terminated prior to such date. If
the Executive’s employment relationship with the Company and all of its Affiliates
terminates before the General Vesting Date, except as otherwise specified in
subsections (b), (c), (d) or (e) below, the Forfeiture Restrictions then applicable to
the Restricted Shares shall not lapse and all the Restricted Shares shall be forfeited
to the Company upon such termination of the Executive’s employment relationship.
	 
	 	(b)  	Death or Disability. Notwithstanding any provisions of Section 4(a) to the
contrary, in the event the Executive’s employment relationship with the Company and all
of its Affiliates is terminated due to the death or Disability of the Executive prior
to the General Vesting Date, the Forfeiture Restrictions shall lapse as to the Shares
that are granted hereby on the date of such termination of the Executive’s employment
relationship due to death or Disability.
	 
	 	(c)  	Retirement. Notwithstanding any provisions of Section 4(a) to the contrary, in
the event the Executive’s employment relationship with the Company and all of its
Affiliates is terminated due to the Retirement of the Executive prior to the General
Vesting Date, the Forfeiture Restrictions shall lapse as to that number of Shares that
remain subject to Forfeiture Restrictions on the date of such termination of the
Executive’s employment relationship due to Retirement equal to:

(1) multiplied by (2) divided by (3)

	 	   	where (1) is the number of Shares awarded under this Agreement minus the
aggregate number of Restricted Shares, if any, with respect to which Forfeiture
Restrictions previously lapsed as a result of the application of Section 4(e), (2)
is the number of days during the period commencing on the Grant Date and ending on
the date the Executive’s employment relationship with the Company and all of its
Affiliates is terminated due to the Retirement of the Executive, and (3) is the
number of days during the period commencing on the Grant Date and ending on the
ninth anniversary of the Grant Date. The Forfeiture Restrictions then applicable to
all the remaining Restricted Shares after the application of the

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	 	   	previous provisions of this Section 4(c) shall not lapse and such Restricted Shares
shall be immediately forfeited to the Company.
	 
	 	(d)  	Termination without Cause or for Good Reason. Notwithstanding any provisions
of Section 4(a) to the contrary, if the Executive’s Employment Agreement provides that
vesting restrictions such as the Forfeiture Restrictions shall lapse in the event the
Executive’s employment relationship with the Company and all of its Affiliates is
terminated “without cause” by the Company and all of its Affiliates or “for good
reason” by the Executive as those terms are defined in the Executive’s Employment
Agreement, then in the event the Executive’s employment relationship with the Company
and all of its Affiliates is terminated prior to the General Vesting Date without cause
by the Company and all of its Affiliates or for good reason by the Executive the
Forfeiture Restrictions shall lapse as to the Shares that are granted hereby on the
date the Executive’s employment relationship with the Company and all of its Affiliates
is so terminated.
	 
	 	(e)  	Early Vesting for Meeting Performance Goals. As soon as reasonably practicable
after each TSR Performance Testing Date, the Committee will calculate the Total
Shareholder Returns of the Performance Peer Group for the Performance Period ending on
such TSR Performance Testing Date. If the following conditions exist with respect to
such Performance Period:

	 	(i)  	the Executive’s employment with the Company and all of its
Affiliates has not terminated on or before the TSR Performance Testing Date for
such Performance Period;
	 
	 	(ii)  	a Change of Control does not occur on or before the TSR
Performance Testing Date for such Performance Period; and
	 
	 	(iii)  	the Company’s Total Shareholder Return for such Performance
Period is ranked at or above the 50th percentile as compared to the
Total Shareholder Returns for such Performance Period of all members of the
Performance Peer Group;

then the Forfeiture Restrictions on that number of Shares equal to:

[(1) multiplied by (2)] minus (3)

	 	   	shall lapse effective as of the TSR Performance Testing Date for such Performance
Period, notwithstanding any provisions of Section 4(a) to the contrary, where (1) is
the number of Shares awarded under this Agreement, (2) is the applicable
“Performance Vesting Percentage” factor specified in the table below, and (3) is
that number of Restricted Shares, if any, with respect to which Forfeiture
Restrictions previously lapsed as a result of the application of this Section 4(e);
provided, however, that if the result of the formula set forth above is a negative
number such result shall be disregarded and the result shall deemed to

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	 	   	be zero for purposes of applying this Section 4(e) with respect to such Performance
Period.

	 	 	 	 	 	 
	 
	 	Percentile Rank of the Company’s Total Shareholder Return	 	 	 	 
	 	for the Performance Period as Compared to the Total	 	Performance
	 	Shareholder Returns of the Other Members of the	 	Vesting
	 	Performance Peer Group for the Performance Period	 	Percentage
	 	50th
	 	 	33.33%	 
	 	51st
	 	 	36.00%	 
	 	52nd
	 	 	38.67%	 
	 	53rd
	 	 	41.33%	 
	 	54th
	 	 	44.00%	 
	 	55th
	 	 	46.67%	 
	 	56th
	 	 	49.33%	 
	 	57th
	 	 	52.00%	 
	 	58th
	 	 	54.67%	 
	 	59th
	 	 	57.33%	 
	 	60th
	 	 	60.00%	 
	 	61st
	 	 	62.67%	 
	 	62nd
	 	 	65.33%	 
	 	63rd
	 	 	68.00%	 
	 	64th
	 	 	70.67%	 
	 	65th
	 	 	73.33%	 
	 	66th
	 	 	76.00%	 
	 	67th
	 	 	78.67%	 
	 	68th
	 	 	81.33%	 
	 	69th
	 	 	84.00%	 
	 	70th
	 	 	86.67%	 
	 	71st
	 	 	89.33%	 
	 	72nd
	 	 	92.00%	 
	 	73rd
	 	 	94.67%	 
	 	74th
	 	 	97.33%	 
	 	75th and above
	 	 	100.00%
	 
	 

	 	   	The Committee shall have the discretion to calculate Total Shareholder Returns for
each company included in the Performance Peer Group, including the Company, and to
determine the formula to achieve such calculations.

	5.  	Effect of Lapse of Restrictions. Upon the lapse of the Forfeiture Restrictions with respect
to Shares granted hereby the Company shall cause to be delivered to the Executive a stock
certificate representing such Shares, and such Shares shall be transferable by the Executive
(except to the extent that any proposed transfer would, in the opinion of counsel satisfactory
to the Company, constitute a violation of applicable securities law).

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	6.  	Capital Adjustments and Reorganizations. The existence of the Restricted Shares shall not
affect in any way the right or power of the Company or any company the stock of which is
awarded pursuant to this Agreement to make or authorize any adjustment, recapitalization,
reorganization or other change in its capital structure or its business, engage in any merger
or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease,
exchange or otherwise dispose of all or any part of its assets or business, or engage in any
other corporate act or proceeding.
	 
	7.  	Tax Gross-Up Bonus and Tax Withholding.

	 	(a)  	Employment Tax. The Company shall pay on behalf of the Executive any Federal
Insurance Contribution Act taxes (“Employment Taxes”) that are payable by the Executive
with respect to a tax year as a result of (i) the Executive’s receipt of the Restricted
Shares, (ii) the lapse of any Forfeiture Restrictions, or (iii) the Executive’s receipt
of any amounts paid by the Company pursuant to this Section 7 (each an “Employment Tax
Event”). Notwithstanding the provisions of the preceding sentence, the Executive
agrees that if the Company is required to make a payment of Employment Taxes for a tax
year with respect to the Executive under the first sentence of this Section 7(a) the
Company may recompute from time to time during such year the Employment Taxes payable
by the Executive for such year by treating all Employment Tax Events that have then
occurred during such year as occurring after the payment by the Company of all other
compensation then paid or payable by the Company to the Executive for such year and the
Executive shall reimburse the Company for, and the Company is authorized to withhold
from the compensation payable by the Company to the Executive for such year, the amount
of any Employment Taxes paid by the Company with respect to the Executive in excess of
the amount the Company is required to pay as indicated by such recomputation.
	 
	 	(b)  	Federal Income Tax. To the extent that any federal, state or local income tax
is imposed on and payable by the Executive (or the Executive’s beneficiaries, in the
event of the death of the Executive) as a result of (i) the Executive’s receipt of the
Restricted Shares, (ii) the lapse of any Forfeiture Restrictions (including as a result
of an election permitted under Section 9), or (iii) the Executive’s receipt of any
amounts paid by the Company pursuant to this Section 7 (each an “Income Tax Event”),
the Company shall pay to, or on behalf of, the Executive a payment or payments (each, a
“Tax Gross-Up Bonus Payment”) in an amount equal to (1) divided by (2) where (1) is the
amount of income attributable to the Income Tax Event and (2) is the following formula:
1 – Aggregate Applicable Income Tax Rates. For this purpose, the term “Aggregate
Applicable Income Tax Rates” shall mean the sum of the highest marginal income tax rate
applicable to individuals for each federal, state or local income tax imposed on the
Executive with respect to the tax year in which the Income Tax Event occurs, provided,
however, that any state or local income tax rate shall be reduced appropriately to the
extent such amount may be deducted in computing a federal or state income tax in such
year.

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	 	(c)  	Excise Tax. To the extent that any federal, state or local excise tax is
imposed on and payable by the Executive as a result of (i) the Executive’s receipt of
the Restricted Shares, (ii) the lapse of any Forfeiture Restrictions, or (iii) the
Executive’s receipt of any amounts paid by the Company pursuant to this Section 7 (each
an “Excise Tax Event”), the Company shall pay to, or on behalf of, the Executive a
payment or payments (each, an “Excise Tax Gross-Up Payment”) in an amount such that
after payment by the Executive of all such excise taxes imposed with respect to the
Excise Tax Event, the Executive retains an amount of such Excise Tax Gross-Up Payment
equal to the aggregate federal, state and local excise tax imposed with respect to the
Excise Tax Event.
	 
	 	(d)  	Time for Payment. A payment under Section 7(a) shall be paid at the time that
the Company has a withholding obligation with respect to the Employment Tax Event. A
payment under Section 7(b) shall be paid at the time that the Company has a withholding
obligation with respect to the Income Tax Event. A payment under Section 7(c) shall be
paid at such other times as the Company determines to be appropriate, but not later
than the date such excise tax is payable by the Executive.
	 
	 	(e)  	Company’s Right to Withhold. The Company shall have the right to withhold from
any payment made under this Section 7 any amounts the Company determines are necessary
for the Company to meet its obligation under applicable tax laws or regulations with
respect to any event described in this Section 7.

	8.  	Employment Relationship. For purposes of this Agreement, the Executive shall be considered
to be in the employment of the Company as long as the Executive has an employment relationship
with the Company. The Committee shall determine any questions as to whether and when there
has been a termination of such employment relationship, and the cause of such termination,
under the Plan and the Committee’s determination shall be final and binding on all persons.
	 
	9.  	Section 83(b) Election. The Executive shall not exercise the election permitted under
section 83(b) of the Code with respect to the Restricted Shares.
	 
	10.  	No Fractional Shares. All provisions of this Agreement concern whole Shares. If the
application of any provision hereunder would yield a fractional share, such fractional share
shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the
next whole share if it is 0.5 or more.
	 
	11.  	Not an Employment Agreement. This Agreement is not an employment agreement, and no provision
of this Agreement shall be construed or interpreted to create an employment relationship
between the Executive and the Company or any of its Affiliates or guarantee the right to
remain employed by the Company or any of its Affiliates for any specified term.
	 
	12.  	Sale. The Executive shall not sell or otherwise transfer any of the Shares except in
accordance with the Securities Act of 1933 and other applicable state and federal laws.

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	13.  	Notices. Any notice, instruction, authorization, request or demand required hereunder shall
be in writing, and shall be delivered either by personal delivery, by telegram, telex,
telecopy or similar facsimile means, by certified or registered mail, return receipt
requested, or by courier or delivery service, addressed to the Company at the Company’s
principal business office address and to the Executive at the Executive’s residential address
indicated beneath the Executive’s signature on the execution page of this Agreement, or at
such other address and number as a party shall have previously designated by written notice
given to the other party in the manner hereinabove set forth. Notices shall be deemed given
when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile
transmission being deemed receipt of communications sent by facsimile means); and when
delivered (or upon the date of attempted delivery where delivery is refused), if
hand-delivered, sent by express courier or delivery service, or sent by certified or
registered mail, return receipt requested.
	 
	14.  	Amendment and Waiver. Except as otherwise provided herein or in the Plan or as necessary to
implement the provisions of the Plan, this Agreement may be amended, modified or superseded
only by written instrument executed by the Company and the Executive. Only a written
instrument executed and delivered by the party waiving compliance hereof shall waive any of
the terms or conditions of this Agreement. Any waiver granted by the Company shall be
effective only if executed and delivered by a duly authorized executive officer of the Company
other than the Executive. The failure of any party at any time or times to require
performance of any provisions hereof shall in no manner effect the right to enforce the same.
No waiver by any party of any term or condition, or the breach of any term or condition
contained in this Agreement, in one or more instances, shall be construed as a continuing
waiver of any such condition or breach, a waiver of any other condition, or the breach of any
other term or condition.
	 
	15.  	Governing Law and Severability. This Agreement shall be governed by the laws of the State of
Texas without regard to its conflicts of law provisions. The invalidity of any provision of
this Agreement shall not affect any other provision of this Agreement, which shall remain in
full force and effect.
	 
	16.  	Successors and Assigns. Subject to the limitations which this Agreement imposes upon the
transferability of the Shares granted hereby, this Agreement shall bind, be enforceable by and
inure to the benefit of the Company and its successors and assigns, and to the Executive, the
Executive’s permitted assigns and upon the Executive’s death, the Executive’s estate and
beneficiaries thereof (whether by will or the laws of descent and distribution), executors,
administrators, agents, legal and personal representatives.
	 
	17.  	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original for all purposes but all of which taken together shall constitute but one
and the same instrument.

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     In Witness Whereof, the Company has caused this Agreement to be duly executed
by an officer thereunto duly authorized, and the Executive has executed this Agreement, all as of
the date first above written.

     Executed ___, 200___.

	 	 	 	 	 	 	 
	 	 	GRANT PRIDECO, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 

	 	
	 	 
	 	 
	

	 	Title:
	 	 
	 	 
	 

	 	
	 	 
	 	 

	 	 	 	 	 	 	 
	

	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Address:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	 

 

 

EXHIBIT A

PERFORMANCE PEER GROUP

 

 

Irrevocable Stock Power

     Know all men by these presents, That The Undersigned, For Value Received, has
bargained, sold, assigned and transferred and by these presents does bargain, sell, assign and
transfer unto Grant Prideco, Inc., a Delaware corporation (the “Company”), the Shares transferred
pursuant to the Restricted Stock Award Agreement dated ___between
the Company and the undersigned (the “Award Agreement”); and subject to and in accordance with the
Award Agreement the undersigned does hereby constitute and appoint the Secretary of the Company the
undersigned’s true and lawful attorney, IRREVOCABLY, to sell assign, transfer, hypothecate, pledge
and make over all or any part of such Shares and for that purpose to make and execute all necessary
acts of assignment and transfer thereof, and to substitute one or more persons with like full
power, hereby ratifying and confirming all that said attorney or his substitutes shall lawfully do
by virtue hereof.

     In Witness Whereof, the undersigned has executed this Irrevocable Stock Power on this ___
day of ___ , 20_________.

	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Name:exv4w22

 

Exhibit 4.22

RESTRICTED STOCK AWARD AGREEMENT

     This Restricted Stock Award Agreement (this “Agreement”) is made by and between Grant
Prideco, Inc., a Delaware corporation (the “Company”) and _________(the
“Executive”) as of the ___th day of
February, 2005 (the “Effective Date”), pursuant to the
_________(the “Plan”), the terms of which are incorporated by reference herein in their
entirety. For purposes herein “Grant Date” shall mean ___.

     Whereas, the Company desires to grant to the Executive the shares of equity
securities specified herein (the “Shares”) and a cash bonus to enable the Executive to pay all
taxes payable by the Executive as a result of his receipt of the Shares, subject to the terms and
conditions of this Agreement; and

     Whereas, the Executive desires to have the opportunity to hold the Shares and earn
the cash bonus described above, subject to the terms and conditions of this Agreement;

     Now, therefore, in consideration of the premises, mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows:

	1.  	Grant of Restricted Shares. Effective as of the Grant Date, the Company shall cause to be
issued in the Executive’s name the following Shares as Restricted Shares: ___shares of
the Company’s common stock, $.01 par value. The Company shall cause certificates evidencing
the Restricted Shares, and any Retained Distributions issued with respect to the Restricted
Shares, to be issued in the Executive’s name. During the Restricted Period such certificates
shall bear a restrictive legend to the effect that ownership of such Restricted Shares (and
any such Retained Distributions), and the enjoyment of all rights appurtenant thereto, are
subject to the restrictions, terms, and conditions provided in the Plan and this Agreement.
The Executive shall have the right to vote the Restricted Shares awarded to the Executive and
to receive and retain all regular cash dividends, and to exercise all other rights, powers and
privileges of a holder of Shares, with respect to such Restricted Shares, with the exception
that (a) the Executive shall not be entitled to delivery of the stock certificate or
certificates representing such Restricted Shares until the Forfeiture Restrictions applicable
thereto shall have expired, (b) the Company shall retain custody of all Retained Distributions
made or declared with respect to the Restricted Shares (and such Retained Distributions shall
be subject to the same restrictions, terms and conditions as are applicable to the Restricted
Shares) until such time, if ever, as the Restricted Shares with respect to which such Retained
Distributions shall have been made, paid, or declared shall have become vested, and such
Retained Distributions shall not bear interest or be segregated in separate accounts and (c)
the Executive may not sell, assign, transfer, pledge, exchange, encumber, or dispose of the
Restricted Shares or any Retained Distributions during the Restricted Period. Upon issuance
the certificates for the Restricted Shares shall be

 

 

	   	delivered to the Secretary of the Company
or to such other depository as may be designated by the Committee as a depository for
safekeeping until the forfeiture of such Restricted Shares occurs or the Forfeiture
Restrictions lapse, together with stock powers or other instruments of assignment, each
endorsed in blank, which will permit transfer to the Company of all or any portion of the
Restricted Shares and any securities constituting Retained Distributions which shall be
forfeited in accordance with the Plan and this Agreement. In accepting the award of Shares
set forth in this Agreement the Executive accepts and agrees to be bound by all the terms and
conditions of the Plan and this Agreement.
	 
	2.  	Definitions. For purposes of this Agreement, the following terms shall have the meanings
indicated below:

	 	(a)  	“Affiliate” shall mean an Entity that is required to be treated as a single
employer together with the Company for certain benefit plan purposes under section 414
of the Code.
	 
	 	(b)  	“Assets” shall mean assets of any kind owned by the Company, including, but not
limited to, securities of the Company’s direct and indirect subsidiaries.
	 
	 	(c)  	“Beneficial Owner” means a “beneficial owner” as defined in Securities and
Exchange Commission Regulation Section 240.13d-3.
	 
	 	(d)  	“Board” shall mean the Board of Directors or other governing body of the
Company or its direct or indirect parent.
	 
	 	(e)  	“Change of Control” shall mean the occurrence of any of the following events:

	 	(i)  	the individuals who are Incumbent Directors cease for any
reason to constitute a majority of the members of the Board;
	 
	 	(ii)  	the consummation of a Merger of the Company or an Affiliate
with another Entity, unless the individuals and Entities who were the
Beneficial Owners of the Voting Securities of the Company outstanding
immediately prior to such Merger own, directly or indirectly, at least 55
percent (55%) of the combined voting power of the Voting Securities of any of
the Company, the surviving Entity or the parent of the surviving Entity
outstanding immediately after such Merger;
	 
	 	(iii)  	any Person becomes a Beneficial Owner, directly or indirectly,
of securities of the Company representing 30 percent (30%) or more of the
combined voting power of the Company’s then outstanding Voting Securities,
other than a Specified Owner;
	 
	 	(iv)  	a sale, transfer, lease or other disposition of all or
substantially all of the Assets is consummated (an “Asset Sale”), unless:

-2-

 

	 	(A)  	the individuals and Entities who were the
Beneficial Owners of the Voting Securities of the Company immediately
prior to such Asset Sale own, directly or indirectly, 55 percent (55%)
or more of the combined voting power of the Voting Securities of the
Entity that acquires such Assets in such Asset Sale or its parent
immediately after such Asset Sale in substantially the same proportions
as their ownership of the Company’s Voting Securities immediately prior
to such Asset Sale; or
	 
	 	(B)  	the individuals who comprise the Board
immediately prior to such Asset Sale constitute a majority of the board
of directors or other governing body of either the Entity that acquired
such Assets in such Asset Sale or its parent (or a majority plus one
member where such board or other governing body is comprised of an odd
number of directors or members); or

	 	(v)  	the stockholders of the Company approve a plan of complete
liquidation or dissolution of the Company.

	 	(f)  	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	(g)  	“Disability” shall have the meaning set forth in the Plan.
	 
	 	(h)  	“Entity” shall mean any corporation, partnership, association, joint-stock
company, limited liability company, trust, unincorporated organization or other
business entity.
	 
	 	(i)  	“Executive’s Employment Agreement” shall mean a written employment agreement
entered into between the Company or any of its Affiliates and the Executive that is in
effect as of the date of this Agreement as well as immediately prior to the termination
of the Executive’s employment with the Company and all of its Affiliates.
	 
	 	(j)  	“Forfeiture Restrictions” shall mean any prohibitions and restrictions set
forth herein with respect to the sale or other disposition of Shares issued to the
Executive hereunder and the obligation to forfeit and surrender such shares to the
Company.
	 
	 	(k)  	“General Vesting Date” shall mean the earlier of (i) the ninth anniversary of
the Grant Date or (ii) the date a Change of Control occurs.
	 
	 	(l)  	“Incumbent Director” shall mean –

	 	(i)  	a member of the Board on January 1, 200___; or
	 
	 	(ii)  	an individual-

	 	(A)  	who becomes a member of the Board after January
1, 200___;

-3-

 

	 	(B)  	whose appointment or election by the Board or
nomination for election by the Company’s stockholders is approved or
recommended by a vote of at least two-thirds (2/3) of the then serving
Incumbent Directors; and
	 
	 	(C)  	whose initial assumption of service on the
Board is not in connection with an actual or threatened election
contest.

	 	(m)  	“Merger” shall mean a merger, consolidation or similar transaction.
	 
	 	(n)  	“Performance Peer Group” shall mean the companies listed on Exhibit A
attached hereto; provided, however, that if after the Grant Date a company listed on
Exhibit A merges or consolidates with another company, is acquired or disposes
of a significant portion of its businesses as they exist on the Grant Date or
experiences any event or circumstance as determined by the Committee in its sole
discretion, the Committee may adjust (by adding, subtracting or replacing) the
companies listed on Exhibit A (by amending and replacing such Exhibit
A) to address any such change or event or circumstance as the Committee determines,
in its sole discretion.
	 
	 	(o)  	“Performance Period” shall mean a period beginning on the Grant Date and ending
on a TSR Performance Testing Date, so that each succeeding Performance
Period (after the first Performance Period) will be one year longer than the
immediately preceding Performance Period.
	 
	 	(p)  	“Person” shall mean any individual, entity or group that is a “person” within
the meaning of Section 3(a)(9), 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended.
	 
	 	(q)  	“Restricted Period” shall mean the period designated by the Committee during
which Restricted Shares may not be sold, assigned, transferred, pledged, or otherwise
encumbered.
	 
	 	(r)  	“Restricted Shares” shall mean Shares that are subject to the Forfeiture
Restrictions under this Agreement.
	 
	 	(s)  	“Retained Distributions” shall mean any securities or other property (other
than regular cash dividends) distributed by the Company in respect of Restricted Shares
during any Restricted Period.
	 
	 	(t)  	“Retirement” shall mean retirement in good standing from the employ of the
Company and all of its Affiliates under the then-established rules of the Company.
	 
	 	(u)  	“Specified Owner” means any of the following:

	 	(i)  	the Company;

-4-

 

	 	(ii)  	an Affiliate;
	 
	 	(iii)  	an employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliate;
	 
	 	(iv)  	a Person that becomes a Beneficial Owner of the Company’s
outstanding Voting Securities representing 30 percent (30%) or more of the
voting power of the Company’s then outstanding Voting Securities as a result of
the acquisition of securities directly from the Company and/or its Affiliates;
or
	 
	 	(v)  	a Person that becomes a Beneficial Owner of the Company’s
outstanding Voting Securities representing 30 percent (30%) or more of the
combined voting power of the then outstanding Voting Securities of the Company
as a result of a Merger if the individuals and Entities who were the Beneficial
Owners of the Voting Securities of the Company outstanding immediately prior to
such Merger own, directly or indirectly, at least 55 percent (55%) of the
combined voting power of the Voting Securities of any of the Company, the
surviving entity or the parent of the surviving entity outstanding immediately
after such Merger in substantially the same proportions as their ownership of
the Voting Securities of the Company outstanding immediately prior to such
Merger.

	 	(v)  	“Total Shareholder Return” shall mean the total shareholder return for the
common stock of the Company or applicable stock of the member of the Performance Peer
Group, taking into account cash and stock dividends, stock splits and other dividends
and distributions and recapitalizations during the applicable period, as calculated and
using methodologies determined by the Committee in its sole discretion, for the period
beginning on the date hereof and ending on the applicable TSR Performance Testing Date.
	 
	 	(w)  	“TSR Performance Testing Date” shall mean each anniversary date of the Grant
Date beginning with the third anniversary of the Grant Date through the eighth
anniversary of the Grant Date.
	 
	 	(x)  	“Voting Securities” shall mean the outstanding securities entitled to vote
generally in the election of directors or other governing body.

	   	Capitalized terms not otherwise defined in this Agreement shall have the meanings given to
such terms in the Plan.
	 
	3.  	Transfer Restrictions. The Shares granted hereby may not be sold, assigned, pledged,
exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than by
will or the applicable laws of descent and distribution) to the extent then subject to the
Forfeiture Restrictions. Any such attempted sale, assignment, pledge, exchange,
hypothecation, transfer, encumbrance or disposition in violation of this Agreement shall be
void and the Company shall not be bound thereby. Further, the Shares granted hereby that are
no longer subject to Forfeiture Restrictions may not be sold or otherwise disposed

-5-

 

of in any
manner that would constitute a violation of any applicable federal or state securities laws.
The Executive also agrees (a) that the Company may refuse to cause the transfer of the Shares
to be registered on the applicable stock transfer records if such proposed transfer would in
the opinion of counsel satisfactory to the Company constitute a violation of any applicable
securities law and (b) that the Company may give related instructions to the transfer agent,
if any, to stop registration of the transfer of the Shares.

	4.  	Vesting. The Shares that are granted hereby shall be subject to Forfeiture Restrictions.
The Forfeiture Restrictions shall lapse as to the Shares that are granted hereby in accordance
with the provisions of subsections (a) through (e) of this Section 4.

	 	(a)  	Generally. The Forfeiture Restrictions shall lapse as to the Shares that are
granted hereby on the General Vesting Date, provided that the Executive’s employment
with the Company and all of its Affiliates has not terminated prior to such date. If
the Executive’s employment relationship with the Company and all of its Affiliates
terminates before the General Vesting Date, except as otherwise specified in
subsections (b), (c), (d) or (e) below, the Forfeiture Restrictions then applicable to
the Restricted Shares shall not lapse and all the Restricted Shares shall be forfeited
to the Company upon such termination of the Executive’s employment relationship.
	 
	 	(b)  	Death or Disability. Notwithstanding any provisions of Section 4(a) to the
contrary, in the event the Executive’s employment relationship with the Company and all
of its Affiliates is terminated due to the death or Disability of the Executive prior
to the General Vesting Date, the Forfeiture Restrictions shall lapse as to the Shares
that are granted hereby on the date of such termination of the Executive’s employment
relationship due to death or Disability.
	 
	 	(c)  	Retirement. Notwithstanding any provisions of Section 4(a) to the contrary, in
the event the Executive’s employment relationship with the Company and all of its
Affiliates is terminated due to the Retirement of the Executive prior to the General
Vesting Date, the Forfeiture Restrictions shall lapse as to that number of Shares that
remain subject to Forfeiture Restrictions on the date of such termination of the
Executive’s employment relationship due to Retirement equal to:

(1) multiplied by (2) divided by (3)

	 	   	where (1) is the number of Shares awarded under this Agreement minus the
aggregate number of Restricted Shares, if any, with respect to which Forfeiture
Restrictions previously lapsed as a result of the application of Section 4(e), (2)
is the number of days during the period commencing on the Grant Date and ending on
the date the Executive’s employment relationship with the Company and all of its
Affiliates is terminated due to the Retirement of the Executive, and (3) is the
number of days during the period commencing on the Grant Date and ending on the
ninth anniversary of the Grant Date. The Forfeiture Restrictions then applicable to
all the remaining Restricted Shares after the application of the

-6-

 

	 	   	previous provisions
of this Section 4(c) shall not lapse and such Restricted Shares shall be immediately
forfeited to the Company.
	 
	 	(d)  	Termination without Cause or for Good Reason. Notwithstanding any provisions
of Section 4(a) to the contrary, if the Executive’s Employment Agreement provides that
vesting restrictions such as the Forfeiture Restrictions shall lapse in the event the
Executive’s employment relationship with the Company and all of its Affiliates is
terminated “without cause” by the Company and all of its Affiliates or “for good
reason” by the Executive as those terms are defined in the Executive’s Employment
Agreement, then in the event the Executive’s employment relationship with the Company
and all of its Affiliates is terminated prior to the General Vesting Date without cause
by the Company and all of its Affiliates or for good reason by the Executive the
Forfeiture Restrictions shall lapse as to the Shares that are granted hereby on the
date the Executive’s employment relationship with the Company and all of its Affiliates
is so terminated.
	 
	 	(e)  	Early Vesting for Meeting Performance Goals. As soon as reasonably practicable
after each TSR Performance Testing Date, the Committee will calculate the Total
Shareholder Returns of the Performance Peer Group for the Performance Period
ending on such TSR Performance Testing Date. If the following conditions exist with
respect to such Performance Period:

	 	(i)  	the Executive’s employment with the Company and all of its
Affiliates has not terminated on or before the TSR Performance Testing Date for
such Performance Period;
	 
	 	(ii)  	a Change of Control does not occur on or before the TSR
Performance Testing Date for such Performance Period; and
	 
	 	(iii)  	the Company’s Total Shareholder Return for such Performance
Period is ranked at or above the 50th percentile as compared to the
Total Shareholder Returns for such Performance Period of all members of the
Performance Peer Group;

	 	   	then the Forfeiture Restrictions on that number of Shares equal to:

[(1) multiplied by (2)] minus (3)

	 	   	shall lapse effective as of the TSR Performance Testing Date for such Performance
Period, notwithstanding any provisions of Section 4(a) to the contrary, where (1) is
the number of Shares awarded under this Agreement, (2) is the applicable
“Performance Vesting Percentage” factor specified in the table below, and (3) is
that number of Restricted Shares, if any, with respect to which Forfeiture
Restrictions previously lapsed as a result of the application of this Section 4(e);
provided, however, that if the result of the formula set forth above is a negative
number such result shall be disregarded and the result shall deemed to

-7-

 

	 	   	be zero for
purposes of applying this Section 4(e) with respect to such Performance Period.

	 	 	 	 	 	 
	 
	 	Percentile Rank of the Company’s Total Shareholder Return	 	 	 	 
	 	for the Performance Period as Compared to the Total	 	 	Performance	 
	 	Shareholder Returns of the Other Members of the	 	 	Vesting	 
	 	Performance Peer Group for the Performance Period	 	 	Percentage	 
	 	50th
	 	 	33.33%	 
	 	51st
	 	 	36.00%	 
	 	52nd
	 	 	38.67%	 
	 	53rd
	 	 	41.33%	 
	 	54th
	 	 	44.00%	 
	 	55th
	 	 	46.67%	 
	 	56th
	 	 	49.33%	 
	 	57th
	 	 	52.00%	 
	 	58th
	 	 	54.67%	 
	 	59th
	 	 	57.33%	 
	 	60th
	 	 	60.00%	 
	 	61st
	 	 	62.67%	 
	 	62nd
	 	 	65.33%	 
	 	63rd
	 	 	68.00%	 
	 	64th
	 	 	70.67%	 
	 	65th
	 	 	73.33%	 
	 	66th
	 	 	76.00%	 
	 	67th
	 	 	78.67%	 
	 	68th
	 	 	81.33%	 
	 	69th
	 	 	84.00%	 
	 	70th
	 	 	86.67%	 
	 	71st
	 	 	89.33%	 
	 	72nd
	 	 	92.00%	 
	 	73rd
	 	 	94.67%	 
	 	74th
	 	 	97.33%	 
	 	75th and above
	 	 	100.00%	 
	 

	 	   	The Committee shall have the discretion to calculate Total Shareholder Returns for
each company included in the Performance Peer Group, including the Company, and to
determine the formula to achieve such calculations.

	5.  	Effect of Lapse of Restrictions. Upon the lapse of the Forfeiture Restrictions with respect
to Shares granted hereby the Company shall cause to be delivered to the Executive a stock
certificate representing such Shares, and such Shares shall be transferable by the Executive
(except to the extent that any proposed transfer would, in the opinion of counsel satisfactory
to the Company, constitute a violation of applicable securities law).

-8-

 

	6.  	Capital Adjustments and Reorganizations. The existence of the Restricted Shares shall not
affect in any way the right or power of the Company or any company the stock of which is
awarded pursuant to this Agreement to make or authorize any adjustment, recapitalization,
reorganization or other change in its capital structure or its business,
engage in any merger or consolidation, issue any debt or equity securities, dissolve or
liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or
business, or engage in any other corporate act or proceeding.
	 
	7.  	Tax Withholding. The Company and employee shall be entitled to satisfy its federal and other
tax withholding obligations by transferring or surrendering vested shares under this
agreement. The number of shares surrendered or transferred shall be calculated utilizing the
same per share value as utilized to calculate the related tax liability.
	 
	8.  	Employment Relationship. For purposes of this Agreement, the Executive shall be considered
to be in the employment of the Company as long as the Executive has an employment relationship
with the Company. The Committee shall determine any questions as to whether and when there
has been a termination of such employment relationship, and the cause of such termination,
under the Plan and the Committee’s determination shall be final and binding on all persons.
	 
	9.  	Section 83(b) Election. The Executive shall not exercise the election permitted under
section 83(b) of the Code with respect to the Restricted Shares.
	 
	10.  	No Fractional Shares. All provisions of this Agreement concern whole Shares. If the
application of any provision hereunder would yield a fractional share, such fractional share
shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the
next whole share if it is 0.5 or more.
	 
	11.  	Not an Employment Agreement. This Agreement is not an employment agreement, and no provision
of this Agreement shall be construed or interpreted to create an employment relationship
between the Executive and the Company or any of its Affiliates or guarantee the right to
remain employed by the Company or any of its Affiliates for any specified term.
	 
	12.  	Sale. The Executive shall not sell or otherwise transfer any of the Shares except in
accordance with the Securities Act of 1933 and other applicable state and federal laws.
	 
	13.  	Notices. Any notice, instruction, authorization, request or demand required hereunder shall
be in writing, and shall be delivered either by personal delivery, by telegram, telex,
telecopy or similar facsimile means, by certified or registered mail, return receipt
requested, or by courier or delivery service, addressed to the Company at the Company’s
principal business office address and to the Executive at the Executive’s residential address
indicated beneath the Executive’s signature on the execution page of this Agreement, or at
such other address and number as a party shall have previously designated by written notice
given to the other party in the manner hereinabove set forth. Notices shall be deemed given
when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile
transmission being deemed receipt of

-9-

 

	   	communications sent by facsimile means); and when
delivered (or upon the date of attempted delivery where delivery is refused), if
hand-delivered, sent by express courier or delivery service, or sent by certified or
registered mail, return receipt requested.
	 
	14.  	Amendment and Waiver. Except as otherwise provided herein or in the Plan or as necessary to
implement the provisions of the Plan, this Agreement may be amended, modified or superseded
only by written instrument executed by the Company and the Executive. Only a written
instrument executed and delivered by the party waiving compliance hereof shall waive any of
the terms or conditions of this Agreement. Any waiver granted by the Company shall be
effective only if executed and delivered by a duly authorized executive officer of the Company
other than the Executive. The failure of any party at any time or times to require
performance of any provisions hereof shall in no manner effect the right to enforce the same.
No waiver by any party of any term or condition, or the breach of any term or condition
contained in this Agreement, in one or more instances, shall be construed as a continuing
waiver of any such condition or breach, a waiver of any other condition, or the breach of any
other term or condition.
	 
	15.  	Governing Law and Severability. This Agreement shall be governed by the laws of the State of
Texas without regard to its conflicts of law provisions. The invalidity of any provision of
this Agreement shall not affect any other provision of this Agreement, which shall remain in
full force and effect.
	 
	16.  	Successors and Assigns. Subject to the limitations which this Agreement imposes upon the
transferability of the Shares granted hereby, this Agreement shall bind, be enforceable by and
inure to the benefit of the Company and its successors and assigns, and to the Executive, the
Executive’s permitted assigns and upon the Executive’s death, the Executive’s estate and
beneficiaries thereof (whether by will or the laws of descent and distribution), executors,
administrators, agents, legal and personal representatives.
	 
	17.  	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original for all purposes but all of which taken together shall constitute but one
and the same instrument.

-10-

 

     In Witness Whereof, the Company has caused this Agreement to be duly executed by an
officer thereunto duly authorized, and the Executive has executed this Agreement, all as of the
date first above written.

	 	 	 	 	 	 	 
	 	 	GRANT PRIDECO, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 

	 	
	 	 
	 	 
	

	 	Title:
	 	 
	 	 
	 

	 	
	 	 
	 	 

	 	 	 	 	 	 	 
	

	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Address:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	 

 

 

EXHIBIT A

PERFORMANCE PEER GROUP

 

 

Irrevocable Stock Power

     Know all men by these presents, That The Undersigned, For Value Received, has
bargained, sold, assigned and transferred and by these presents does bargain, sell, assign and
transfer unto Grant Prideco, Inc., a Delaware corporation (the “Company”), the Shares transferred
pursuant to the Restricted Stock Award Agreement dated _________ between
the Company and the undersigned (the “Award Agreement”); and subject to and in accordance with the
Award Agreement the undersigned does hereby constitute and appoint the Secretary of the Company the
undersigned’s true and lawful attorney, IRREVOCABLY, to sell assign, transfer, hypothecate, pledge
and make over all or any part of such Shares and for that purpose to make and execute all necessary
acts of assignment and transfer thereof, and to substitute one or more persons with like full
power, hereby ratifying and confirming all that said attorney or his substitutes shall lawfully do
by virtue hereof.

     In Witness Whereof, the undersigned has executed this Irrevocable Stock Power on this ___
day of ___, 20___.

	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Name:

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