Document:

PROMISSORY NOTE WITH ENRIQUE P. (HENRY) FIALLO

 
  
 

 EXHIBIT 10.28

 NOTE

 
 	 Date of
     Note:          
            

   	August 23, 1999

   
	  	  
	Principal Amount of Note:

   	One Hundred Thousand Dollars ($100,000.00)

   
	  	  
	Maker:

   	Henry Fiallo

   38 Depot Road

   Hampton Falls, NH 03844

   
	  	  
	Lender:

   	Cabletron Systems, Inc.

   35 Industrial Way

   Rochester, New Hampshire

   
	  	  
	Loan Term:

   	Approximately Two (2) Years and Nine (9) Months

   
	  	  
	Payment Day:

   	The 1st
   day of June, 2002

   
	  	  
	Note Party:

   	The Maker and any guarantor, endorser, or surety of the
     Maker hereunder.

   
	  	  
	Place of Execution of Note:

   	Rochester, New Hampshire

   

 

For value received, the Maker does hereby promise to pay to
   the order of Lender at the office of the Lender set forth or at such other
   place or places or to such other party or parties as the holder of this Note
   may from time to time designate the Principal Amount of this Note, without
   interest, on the Payment Day.

 Notwithstanding anything herein contained to the contrary,
   all amounts outstanding hereunder shall become immediately due and payable
   to the Lender if either (i) the Maker's employment with the Lender, its
   affiliates, or their successors or assigns is terminated by the Maker; or
   (ii) if the Maker's employment is terminated by the Lender, its affiliates,
   or their successors or assigns for "cause". Cause, for the
   purposes hereof, shall mean (a) the commission by the Maker of any material
   breach of any of the provisions contained in any written agreement between
   the Lender or its affiliates and the Maker; or (b) the Maker being guilty of
   any misconduct or neglect in the discharge of his duties hereunder; or (c)
   the Maker being convicted of any criminal offense other than a routine motor
   vehicle offense; or (d) the Maker becoming disabled by illness, injury,
   accident or any other circumstances which prevent him from performing his
   duties for a period of six (6) months in any period of twenty four (24)
   consecutive calendar months or (e) the death of the Maker.

  

 In the case of any default continuing for five (5) days in
   the making of any payment provided for in this Note, interest shall be
   automatically payable as of such day at the lower of fifteen percent (15%)
   per annum or the highest rate allowed by law until such time as such default
   is cured.

 The Maker shall be liable for all costs incurred in the
   collection of this Note, including reasonable attorneys' fees. All payments
   made hereunder shall first be applied to interest and then to
   principal.

 Privilege is reserved by the Maker, and given by the
   Lender, of making additional payments in whole or in part prior to the
   Payment Day, without penalty, to the extent of prepayment in full.

 This Note may not be changed orally, but only by an
   agreement in writing.

 If there shall be more than one Note Party, the liability
   of the Note parties shall be joint and several. If the Maker shall consist
   of more than one person, the liability of the persons constituting the Maker
   shall be joint and several. Each Note Party agrees that it shall be bound by
   any agreement extending the time for payment or modifying the terms of
   payment of the Note made by the holder of this Note and the Maker with or
   without notice to such Note Party not party to such agreement of extension
   or modification. The liability of each Maker shall be unaffected by the
   release of any other Note Party or any modification, waiver, release or
   discharge of any security.

 Each Note Party hereby waives presentment for payment,
   notice of dishonor, protest, and all other demands and notices in connection
   with the delivery, acceptance, performance, default or enforcement of this
   Note, and agrees to pay all costs of collection when incurred, including
   reasonable attorneys' fees and to perform and comply with each of the
   covenants, conditions, provisions and

  agreements of any of the undersigned contained in every
   instrument evidencing or securing said indebtedness. No extension of the
   time for the payment of this Note or any installment hereof made by
   agreement with any person now or hereafter liable for the payment of this
   Note shall operate to release, discharge, modify, change or affect the
   liability of any Note Party.

 If any provision of this Note shall be determined to be
   invalid or unenforceable under law, such determination shall not affect the
   validity or enforcement of the remaining provisions of this Note.

 The waiver of any provision of this Note by the Lender
   shall not constitute any future waiver of that, or any other
   provision.

 This Note shall be construed under the laws of the State of
   New Hampshire.

 IN WITNESS WHEREOF, the Maker has hereunto set his hand and
   seal effective the date first above written.

 
  WITNESS:

 

 
 	 	 
	 /s/Rachel M. Tanguay

   	 /s/Enrique P. Fiallo

   
	 	 Henry Fiallo<PAGE>   1
                                                                    EXHIBIT 4.16

                             SCHEDULE OF SUBSCRIBERS

BPI Canadian Small Companies Fund
956872 Ontario Limited
Interward Corporation
Rockhaven Holdings Limited
YMG Capital Management Incorporated
Acuity Investment Management Incorporated
Beluga NV
Pinetree Capital Corp.
Fallingbrook Investments Limited
Glentel Incorporated
Scott Leckie
Frank Fini
Crothers Leasing Limited
Moise Afriat
Lionel K. Conacher
Kehler International Equities (1990) Incorporated
Jean Gevaert
Ron Kaulbach
Andrew Parsons
Eldon Guay
David J. Grand
Merdoch & Company
Robert F. Wilson
ABC Family Trust
Third Point Partners LP
Third Point Offshore Fund Limited
Points West International Investments Limited
Banzai Partners LP
Banzai Offshore Fund Limited<PAGE>   1

                                                                   Exhibit 10.17

                   FIRST AMENDMENT TO STOCK PURCHASE AGREEMENT

                  This Amendment to Stock Purchase Agreement is dated as of May
19, 2000 (the "Amendment"), by and between JAWS Technologies, Inc., a Nevada
corporation ("JAWS"), Charles A. Ehredt ("Ehredt"), and Nucleus Consulting,
Inc., an Illinois corporation ("Nucleus"). Capitalized terms used not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Stock Purchase Agreement, dated as of April 20, 2000, by and between JAWS,
Ehredt and Nucleus (the "Stock Purchase Agreement").

                                   WITNESSETH:

                  WHEREAS, JAWS, Ehredt and Nucleus are parties to a Stock
Purchase Agreement, providing for the sale by Ehredt to JAWS of all of the
issued and outstanding share of capital stock of Nucleus (the "Shares"); and

                  WHEREAS, the parties now desire to enter into this Amendment
to provide for an acceleration of the payment of the Deferred Cash Consideration
to the date hereof.

                  NOW, THEREFORE, in consideration of the mutual covenants and
premises set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby mutually acknowledged, the parties
hereto agree as follows:

                  1. Notwithstanding any provision in the Stock Purchase
Agreement to the contrary, the parties hereto agree that the Deferred Cash
Consideration shall be paid by JAWS or its designee to Ehredt on the date
hereof.

                  2. Ehredt acknowledges that nothing herein shall release him
from his obligations under the Stock Purchase Agreement including, but not
limited to, any and all of the indemnity obligations under the Stock Purchase
Agreement.

                  3. Except to the extent each is expressly amended by the terms
of this Amendment, all terms and conditions of the Stock Purchase Agreement and
all other instruments and agreements executed thereunder or in connection
therewith shall remain in full force and effect in accordance with their terms.
This Amendment may be amended, supplemented or otherwise modified only by
written instrument executed by the parties hereto.

                  4. This Amendment may be executed simultaneously in any number
of counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Amendment shall be
governed by and construed in accordance with the terms, conditions and
provisions of the Stock Purchase Agreement.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>   2

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Amendment as of the date first above written.

                                      JAWS TECHNOLOGIES, INC.

                                      By       /s/ Riaz Mamdani
                                      Name:        Riaz Mamdani
                                      Title:       Chief Financial Officer

                                      NUCLEUS CONSULTING, INC.

                                      By  /s/ Charles A. Ehredt
                                      Name:     Charles A. Ehredt
                                      Title:    President

                                      /s/ Charles A. Ehredt
                                      Charles A. Ehredt, individually as Seller<PAGE>   1
                                                                     EXHIBIT 4.2

                             SUBORDINATION AGREEMENT

                  SUBORDINATION AGREEMENT dated as of April 14, 2000 (this
"Agreement") by Weatherford International, Inc., a Delaware corporation
("Weatherford"), as the payee of that certain Subordinated Promissory Note of
even date herewith in the original principal amount of $100,000,000 (as amended,
supplemented or otherwise modified from time to time, the "Junior Note") from
Grant Prideco, Inc., a Delaware corporation ("GPI"), to Weatherford (in such
capacity as payee, together with its successors and assigns, the "Junior
Lender"), in favor of Transamerica Business Credit Corporation, a Delaware
corporation ("TBCC"), as agent (the "Agent") for the lenders (the "Lenders")
party to the Loan and Security Agreement of even date herewith (as amended,
supplemented or otherwise modified from time to time, the "Senior Loan
Agreement") among each of the subsidiaries of GPI specified in Schedule 1 hereto
(the "Borrowers"), the Agent and the Lenders (together with the Lenders'
respective successors and assigns, the "Senior Lenders").

                              W I T N E S S E T H :

                  WHEREAS, before the date hereof, GPI was a wholly owned
Subsidiary of Weatherford and had intercompany indebtedness to Weatherford,
$100,000,000 of which is evidenced by the Junior Note;

                  WHEREAS, Weatherford will distribute all the shares of common
stock of GPI to the shareholders of Weatherford in connection with a spinoff
(the "Spinoff") to occur substantially simultaneously with the closing of the
transactions contemplated by the Senior Loan Agreement;

                  WHEREAS, in connection with the Spinoff, the Senior Lenders
have agreed to make loans and other extensions of credit to the Borrowers, and
GPI has agreed to guaranty the obligations of the Borrowers to the Agent and the
Senior Lenders arising in connection therewith under the Guaranty of even date
herewith (as amended, supplemented or otherwise modified from time to time, the
"Guaranty") by GPI and certain of its Subsidiaries in favor of the Agent for the
benefit of itself and the Senior Lenders;

                  WHEREAS, it is a condition precedent to the effectiveness of
the Senior Loan Agreement that the Junior Lender and GPI shall have executed and
delivered this Agreement subordinating its rights with respect to the Junior
Obligations

<PAGE>   2

to the rights of the Agent and the Senior Lenders with respect to the Senior
Obligations;

                  NOW, THEREFORE, in consideration of the promises contained
herein and to induce the Agent and the Senior Lenders to enter into the Senior
Loan Agreement and to make loans and other extensions of credit to the Borrowers
thereunder, the Junior Lender agrees as follows:

                  SECTION 1. DEFINITIONS. Capitalized terms not otherwise
defined herein shall have the meanings set forth in the Senior Loan Agreement,
and the rules of usage set forth therein shall apply hereto.

                  SECTION 2. SUBORDINATION.

                           (a) All Junior Obligations (as defined below), and
all rights and remedies of the Junior Lender with respect thereto, are and shall
continue to be subject, subordinate and junior in right of payment to the Senior
Obligations (as defined below) including, without limitation, all interest on
the Senior Obligations at the rate stated in the Senior Loan Agreement from the
date of the filing by or against GPI or any Designated Loan Party that has
guaranteed (or is otherwise liable for), or whose assets secure in whole or in
part, the Senior Obligations (a "Designated Loan Party") of a petition under any
bankruptcy, insolvency or similar law to the date of the indefeasible payment in
full of the Senior Obligations ("Postpetition Interest"). The term "Junior
Obligations," as used in this Agreement, shall mean the principal of and
premium, if any, and interest on the Junior Note (including extensions, renewals
and refundings thereof) and any guaranty liabilities of any Designated Loan
Party in respect thereof together with all fees, costs and expenses relating
thereto, now or hereafter existing. The term "Senior Obligations," as used in
this Agreement, shall mean the principal amount of and premium, if any, and
interest on all Obligations of GPI or any Designated Loan Party to the Agent and
the Senior Lenders together with all fees, costs and expenses relating thereto,
whether direct or contingent, now or hereafter existing, due or to become due
to, or held or to be held by, the Agent and the Senior Lenders, whether created
directly or acquired by assignment or otherwise including, without limitation,
all indebtedness of GPI under the Guaranty (including extensions, renewals and
refundings thereof) and any agreement between or among GPI, any Designated Loan
Party, the Agent and the Senior Lenders, provided that, in no event shall the
Senior Obligations exceed the sum of (i) US$100,000,000, plus (ii) accrued
unpaid interest arising under the Senior Loan Agreement, plus (iii)
indemnification obligations, fees and reimbursable expenses due under or in
connection with the Senior Loan Agreement.

                                      -2-
<PAGE>   3

                           (b) Except as set forth in Section 2(c), the Junior
Lender shall not receive or accept any payment on the Junior Obligations,
whether as principal, premium, interest or otherwise (including by setoff or
right of recoupment), unless and until all the Senior Obligations including,
without limitation, all Post-petition Interest have been indefeasibly paid in
full in cash.

                           (c) The Junior Lender may receive, accept and retain
(i) regularly-scheduled interest payments on account of the Junior Note and (ii)
the payment or prepayment of the Junior Obligations from the proceeds of
Permitted Refinancing Indebtedness and from Net Cash Proceeds so long as, in
each case, immediately prior to and after giving effect to such payment or
prepayment, a Default or Event of Default under the Senior Loan Agreement shall
not have occurred and be continuing.

                           (d) If the Junior Lender shall receive any payment or
prepayment on the Junior Obligations that it is not entitled to receive under
the provisions of the foregoing subsection, the Junior Lender will hold any
amount so received in trust for the Agent and the Senior Lenders and shall, as
soon as possible, turn over such payment to the Agent in the form received to be
applied to the Senior Obligations.

                           (e) The Junior Lender will not commence any action or
proceeding against GPI or any Designated Loan Party to recover all or any part
of the Junior Obligations or join with any creditor, unless the Agent or the
Senior Lenders shall also have joined, in bringing against GPI or any Designated
Loan Party any such proceeding including, without limitation, any proceeding
under any bankruptcy, insolvency or similar law or any other proceeding the
result of which could give rise to an Insolvency Event until the earlier of (i)
the date on which the Commitments have been terminated, the Senior Obligations
have been indefeasibly paid in full in cash and all Letters of Credit have been
Collateralized or have terminated or expired and (ii) 180 days after the
occurrence of an Event of Default under and as defined in the Junior Note.

                           (f) Upon the occurrence of any Insolvency Event of
GPI or any Designated Loan Party or in the event of a sale of all or
substantially all of the assets or any other marshaling of the assets and
liabilities, or any recapitalization, refinancing or reorganization of GPI or
any Designated Loan Party, the Senior Obligations shall first be indefeasibly
paid in full in cash before the Junior Lender shall be entitled to receive any
money, distributions or other assets in any such proceeding. In any such event,
if the Junior Lender has not previously done so, the Agent may (without having
any obligation to do so), and is hereby irrevocably authorized and granted an
exclusive power (which power is coupled with an interest), but without imposing
any obligation upon the Agent, to file any claim, proof of claim or

                                      -3-
<PAGE>   4

other similar instrument necessary to enforce the obligations of GPI or any
Designated Loan Party in respect of the Junior Obligations, provided that the
Agent shall not exercise any such right or power unless it has given the Junior
Lender at least five Business Days' prior written notice of the Agent's
intention to do so. Further, upon the occurrence of any such Insolvency Event or
in any other statutory or nonstatutory proceeding, the Junior Lender shall vote
the Junior Note in such event or proceeding including, without limitation, in
connection with the election of trustees, the acceptance or rejection of plans
of reorganization and any other matter upon which the Junior Lender is entitled
to vote, in each case in a manner consistent with this Agreement in all
respects, and the Agent is hereby authorized to enjoin any attempt to vote the
Junior Note in a manner that would violate this subsection.

                           (g) The Agent or the Senior Lenders may, at any time
and from time to time, without the consent of or notice to the Junior Lender,
without incurring responsibility to the Junior Lender and without impairing or
releasing any right or obligation of the Agent or the Senior Lenders hereunder:

                           (i) Change the manner, place or terms of payment or
                  change or extend the time of payment of or renew or alter the
                  Senior Obligations or amend the Senior Loan Agreement in any
                  manner or enter into or amend in any manner any other
                  agreement relating to the Senior Obligations;

                           (ii) Sell, exchange, release or otherwise deal with
                  any property by whomsoever at any time pledged to secure, or
                  howsoever securing, the Senior Obligations;

                           (iii) Release any Person liable in any manner for the
                  payment or collection of any of the Senior Obligations,
                  including, without limitation, GPI or any Designated Loan
                  Party;

                           (iv) Exercise or refrain from exercising any rights
                  against GPI or any Designated Loan Party or any other Person;
                  or

                           (v) Apply any sums by whomsoever paid or however
                  realized to the Senior Obligations,

provided that the foregoing provisions shall not be deemed to authorize any
increase in the amount of the Senior Obligations.

                           (h) The Junior Lender waives notice of acceptance of
this Agreement.

                                      -4-
<PAGE>   5

                           (i) The Junior Lender will cause each note or other
instrument that evidences any Junior Obligations to bear upon its face a
statement or legend to the effect that such note or other instrument is
subordinated to the Senior Obligations in the manner and to the extent set forth
in this Agreement. The Junior Lender shall mark its books to show that the
Junior Obligations are so subordinated to the Senior Obligations.

                           (j) Subject to the indefeasible payment in full of
the Senior Obligations in immediately available funds, the Junior Lender shall
be subrogated to the Agent's and the Senior Lenders' rights to receive payments
or distributions in cash or property applicable to the Senior Obligations, and
no payment or distribution made to the Agent or the Senior Lenders by virtue of
this Agreement that otherwise would have been made to the Junior Lender shall be
deemed to be a payment by GPI or any Designated Loan Party on account of the
Junior Obligations, it being understood that the provisions of this Section 2
are intended solely for the purpose of defining the relative rights of the
Junior Lender, on the one hand, and the Agent and the Senior Lenders, on the
other hand.

                           (k) From time to time at the request of the Agent,
the Junior Lender will permit the Agent to inspect and make extracts from its
books and records pertaining to the Junior Obligations and to examine any
instrument or instruments or record or records now or hereafter held by the
Junior Lender creating or evidencing the Junior Obligations.

                           (l) The Junior Lender will not sell, assign, transfer
or otherwise dispose of all or any part of the Junior Obligations to any Person,
other than a Person owned by or under common ownership with the Junior Lender,
without such Person's agreement in writing to be bound as the Junior Lender's
successor by the terms of this Agreement.

                           (m) The Junior Lender agrees that it will not
exercise any right of setoff it may have on account of the Junior Obligations
against any obligation owing by the Junior Lender to any Borrower under any
Receivables.

                  SECTION 3. TERMINATION. This Agreement shall terminate and
cease to be of further effect upon the termination of the Commitments, the
indefeasible payment in full in cash of the Senior Obligations and the
termination, Collateralization or expiration of all Letters of Credit, or the
payment in full of the Junior Obligations so long as such payment is consistent
with Section 7.2(p) of the Senior Loan Agreement and the terms hereof.

                  SECTION 4. BENEFIT OF AGREEMENT. Nothing in this Agreement,
expressed or implied, shall give or be construed to give to any Person
including, without limitation, GPI or any

                                      -5-
<PAGE>   6

Designated Loan Party (but excluding the Agent and the Senior Lenders) any legal
or equitable right, remedy or claim under this Agreement, or under any covenant
or provision herein contained, all such covenants and provisions being for the
sole benefit of the Agent and the Senior Lenders.

                  SECTION 5. NOTICES. Except as otherwise provided herein, all
notices and other communications hereunder shall be in writing and sent by
certified or registered mail, return receipt requested, by overnight delivery
service, with all charges prepaid, or by telecopier followed by a hard copy sent
by regular mail, if to the Agent, then to Transamerica Business Credit
Corporation, 555 Theodore Fremd Avenue, Suite C-301, Rye, New York 10580,
Telecopy: (914) 921-0110, Attn.: Mr. Steven R. Fischer, Executive Vice
President, with a copy to Transamerica Business Credit Corporation, 9399 West
Higgins Road, Suite 600, Rosemont, Illinois 60018, Telecopy: (847) 685-1143,
Attn.: General Counsel, if to any Senior Lender, then to its address specified
on Schedule 2 to the Senior Loan Agreement, if to GPI or any Designated Loan
Party, then to Grant Prideco, Inc., 1450 Lake Robbins Drive, Suite 600, The
Woodlands, Texas 77380, Telecopy: (281) 297-8688, Attn.: Ms. Frances R. Powell
and Philip A. Choyce, Esq., with a copy to Fulbright & Jaworski L.L.P., 1301
McKinney, Suite 5100, Houston, Texas 77010-3095, Telecopy: (713) 651-5246,
Attn.: Joshua P. Agrons, Esq., and if to Weatherford, then to Weatherford
International, Inc., 515 Post Oak Boulevard, Suite 600, Houston, Texas 77027,
Telecopy: (713) 693-4230, Attn.: General Counsel, or, in each case, to such
other address as a party may specify to the other parties in the manner required
hereunder. All such notices and correspondence shall be deemed given (i) if sent
by certified or registered mail, three Business Days after being postmarked,
(ii) if sent by overnight delivery service, when received at the above stated
addresses or when delivery is refused and (iii) if sent by telecopier
transmission, when such transmission is confirmed.

                  SECTION 6. AMENDMENTS AND WAIVERS. No amendment or waiver of
any provision of this Agreement, or consent to any departure by the Junior
Lender, GPI or any Designated Loan Party therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Agent, GPI and
the Junior Lender.

                  SECTION 7. DELAYS; PARTIAL EXERCISE OF REMEDIES. No delay or
omission of the Agent or any Senior Lender to exercise any right or remedy
hereunder shall impair any such right or operate as a waiver thereof. No single
or partial exercise by the Agent or any Senior Lender of any right or remedy
shall preclude any other or further exercise thereof, or preclude any other
right or remedy.

                                      -6-
<PAGE>   7

                  SECTION 8. COUNTERPARTS; TELECOPIED SIGNATURES. This Agreement
and any waiver or amendment hereto may be executed in counterparts and by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument. This Agreement may be executed and delivered by
telecopier or other facsimile transmission all with the same force and effect as
if the same was a fully executed and delivered original manual counterpart.

                  SECTION 9. SEVERABILITY. In case any provision in or
obligation under this Agreement shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

                  SECTION 10. ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS. This
Agreement constitutes the entire agreement among the parties, supersedes any
prior written and verbal agreements among them, and shall bind and benefit the
parties (including, without limitation, the Agent and the Senior Lenders) and
their respective successors and permitted assigns.

                  SECTION 11. SPECIFIC PERFORMANCE. THE AGENT IS HEREBY
AUTHORIZED TO DEMAND SPECIFIC PERFORMANCE OF THIS AGREEMENT AT ANY TIME WHEN THE
JUNIOR LENDER SHALL HAVE FAILED TO COMPLY WITH ANY OF THE PROVISIONS OF THIS
AGREEMENT APPLICABLE TO IT. THE JUNIOR LENDER HEREBY IRREVOCABLY WAIVES ANY
DEFENSE BASED ON THE ADEQUACY OF A REMEDY AT LAW THAT MIGHT BE ASSERTED AS A BAR
TO SUCH REMEDY OF SPECIFIC PERFORMANCE.

                  SECTION 12. GOVERNING LAW. THE VALIDITY, INTERPRETATION AND
ENFORCEMENT OF THIS AGREEMENT AND ANY DISPUTE ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT, EQUITY OR OTHERWISE,
SHALL BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAW
PROVISIONS OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW)
AND DECISIONS OF THE STATE OF NEW YORK.

                  SECTION 13. SUBMISSION TO JURISDICTION. ALL DISPUTES BETWEEN
OR AMONG ANY OF THE PARTIES HERETO, WHETHER SOUNDING IN CONTRACT, TORT, EQUITY
OR OTHERWISE, SHALL BE RESOLVED ONLY BY STATE AND FEDERAL COURTS LOCATED IN NEW
YORK, NEW YORK AND THE COURTS TO WHICH AN APPEAL THEREFROM MAY BE TAKEN;
PROVIDED, HOWEVER, THAT THE AGENT OR A SENIOR LENDER SHALL HAVE THE RIGHT, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, TO PROCEED AGAINST THE JUNIOR LENDER,
GPI OR ANY DESIGNATED LOAN PARTY TO ENFORCE THE PROVISIONS HEREOF IN ANY OTHER
COURTS OF COMPETENT JURISDICTION AND VENUE IN NEW YORK OR TEXAS. EACH OF THE
JUNIOR LENDER AND GPI WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF
ANY SUCH COURT IN WHICH THE AGENT OR A SENIOR LENDER HAS COMMENCED A PROCEEDING,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON
FORUM NON CONVENIENS.

                                      -7-
<PAGE>   8

                  SECTION 14. JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO
(I) THIS AGREEMENT OR (II) ANY CONDUCT, ACTS OR OMISSIONS OF THE JUNIOR LENDER,
GPI, ANY DESIGNATED LOAN PARTY, THE AGENT OR A SENIOR LENDER OR ANY OF THEIR
RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR OTHER
AFFILIATES, IN EACH CASE WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.

                                      -8-
<PAGE>   9

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

                                          WEATHERFORD INTERNATIONAL, INC.

                                          By: /s/ CURTIS W. HUFF
                                             -----------------------------------
                                             Name: Curtis W. Huff
                                             Title: Chief Financial Officer,
                                             General Counsel and Secretary

                                      -9-
<PAGE>   10

                                 ACKNOWLEDGEMENT

                  Grant Prideco, Inc. and its undersigned subsidiaries hereby
acknowledge the provisions of the foregoing Subordination Agreement and agree to
abide by the terms thereof.

                                     GRANT PRIDECO, INC.

                                     By: /s/ PHILIP A. CHOYCE
                                        ----------------------------------------
                                        Name: Philip A. Choyce
                                        Title: Vice President

                                     GRANT PRIDECO, LP

                                     By:  Grant Prideco Holding LLC
                                          its General Partner

                                     By: /s/ PHILIP A. CHOYCE
                                        ----------------------------------------
                                        Name: Philip A. Choyce
                                        Title: Vice President

                                     GRANT PRIDECO TECHNOLOGY, INC.

                                     By: /s/ LINDA S. BUBACE
                                        ----------------------------------------
                                        Name: Linda S. Bubace
                                        Title: Vice President

                                      -10-

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