Document:

<PAGE>

                              SECOND AMENDMENT TO
                               CREDIT AGREEMENT

                                    between

                                DRIL-QUIP, INC.

                                      and

                     BANK ONE, TEXAS, NATIONAL ASSOCIATION

                                Effective as of
                               January 24, 2001
<PAGE>

                               TABLE OF CONTENTS

                                                                   PAGE

ARTICLE I.    DEFINITIONS.........................................   1
              1.01  Terms Defined Above...........................   1
              1.02  Terms Defined in Agreement....................   1
              1.03  References....................................   1
              1.04  Articles and Sections.........................   1
              1.05  Number and Gender.............................   2

ARTICLE II.   AMENDMENTS..........................................   2
              2.01  Amendment of Section 1.2......................   2
              2.02  Amendment of Section 2.9......................   2
              2.03  Amendment of Section 6.4......................   2
              2.04  Amendment of Exhibit I........................   3
              2.05  Amendment of Exhibit IV.......................   3

ARTICLE III   CONDITIONS..........................................   3
              3.01  Receipt of Documents..........................   3
              3.02  Accuracy of Representations and Warranties....   3

ARTICLE IV.   REPRESENTATIONS AND WARRANTIES......................   3

ARTICLE V.    RATIFICATION........................................   4

ARTICLE VI.   MISCELLANEOUS.......................................   4
              6.01  Scope of Amendment............................   4
              6.02  Agreement as Amended..........................   4
              6.03  Parties in Interest...........................   4
              6.04  Rights of Third Parties.......................   4
              6.05  ENTIRE AGREEMENT..............................   4
              6.06  GOVERNING LAW.................................   5
              6.07  JURISDICTION AND VENUE........................   5
<PAGE>

                     SECOND AMENDMENT TO CREDIT AGREEMENT

    This SECOND AMENDMENT TO CREDIT AGREEMENT (this "Second Amendment") is made
and entered into effective as of January 24, 2001, between DRIL-QUIP, INC., a
Delaware corporation (the "Borrower"), and BANK ONE, TEXAS, NATIONAL
ASSOCIATION, a national banking association (the "Lender").

                             W I T N E S S E T H:

    WHEREAS, the above named parties did execute and exchange counterparts of
that certain Credit Agreement dated August 27, 1999, as amended by First
Amendment to Credit Agreement dated effective as of May 26, 2000 (the
"Agreement"), to which reference is here made for all purposes;

    WHEREAS, the parties subject to and bound by the Agreement are desirous of
amending the Agreement in the particulars hereinafter set forth;

    NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties to the Agreement, as set forth therein, and the mutual covenants and
agreements of the parties hereto, as set forth in this Second Amendment, the
parties hereto agree as follows:

                                  ARTICLE I.
                                  DEFINITIONS

    1.01 Terms Defined Above.  As used herein, each of the terms "Agreement,"
"Borrower," "Lender," and "Second Amendment" shall have the meaning assigned to
such term hereinabove.

    1.02 Terms Defined in Agreement. As used herein, each term defined in the
Agreement shall have the meaning assigned thereto in the Agreement, unless
expressly provided herein to the contrary.

    1.03 References. References in this Second Amendment to Article or Section
numbers shall be to Articles and Sections of this Second Amendment, unless
expressly stated herein to the contrary. References in this Second Amendment to
"hereby," "herein," "hereinafter," "hereinabove," "hereinbelow," "hereof," and
"hereunder" shall be to this Second Amendment in its entirety and not only to
the particular Article or Section in which such reference appears.

    1.04. Articles and Sections. This Second Amendment, for convenience only,
has been divided into Articles and Sections and it is understood that the
rights, powers, privileges, duties, and other legal relations of the parties
hereto shall be determined from this Second Amendment as an
<PAGE>

entirety and without regard to such division into Articles and Sections and
without regard to headings prefixed to such Articles and Sections.

    1.05 Number and Gender. Whenever the context requires, reference herein made
to the single number shall be understood to include the plural and likewise the
plural shall be understood to include the singular. Words denoting sex shall be
construed to include the masculine, feminine, and neuter, when such construction
is appropriate, and specific enumeration shall not exclude the general, but
shall be construed as cumulative. Definitions of terms defined in the singular
and plural shall be equally applicable to the plural or singular, as the case
may be.

                                  ARTICLE II.
                                  AMENDMENTS

    The Borrower and the Lender hereby amend the Agreement in the following
particulars:

    2.01 Amendment of Section 1.2. Section 1.2 of the Agreement is hereby
amended as follows:

    The following definition is amended to read as follows:

        "Available Commitment" shall mean, at any time, an amount equal to the
    remainder, if any, of (a) $40,000,000 minus (b) the Loan Balance at such
    time."

    2.02 Amendment of Section 2.9. Section 2.9 of the Agreement is hereby
amended to read as follows:

        "2.9 Facility Fee. In addition to interest on the Note as provided
    herein and all other fees payable hereunder and to compensate the Lender for
    the costs of the extension of credit hereunder, the Borrower shall pay to
    the Lender on the date of execution of this Second Amendment, in immediately
    available funds, a facility fee in the amount of $25,000."

    2.03 Amendment of Section 6.4. Section 6.4 of the Agreement is hereby
amended to read as follows:

        "6.4 Tangible Net Worth. Permit Tangible Net Worth as of the close of
    any fiscal quarter to be less than $140,000,000 for all periods beginning
    with the December 31, 2000, Financial Statements."

                                       2
<PAGE>

    2.04 Amendment of Exhibit I. Exhibit I, i.e. the Form of Promissory Note, is
as set forth on Exhibit I to this Second Amendment.

    2.05 Amendment of Exhibit IV. Exhibit IV, i.e. "Disclosures", is as set
forth on Exhibit IV to this Second Amendment.

                                 ARTICLE III.
                                  CONDITIONS

    The obligation of the Lender to amend the Agreement as provided herein is
subject to the fulfillment of the following conditions precedent:

    3.01 Receipt of Documents. The Lender shall have received, reviewed, and
approved the following documents and other items, appropriately executed when
necessary and in form and substance satisfactory to the Lender:

    (a)  multiple counterparts of this Second Amendment as requested by the
         Lender;

    (b)  the Note; and

    (c)  such other agreements, documents, items, instruments, opinions,
         certificates, waivers, consents, and evidence as the Lender may
         reasonably request.

    3.02 Accuracy of Representations and Warranties. The representations and
warranties contained in Article IV of the Agreement and this Second Amendment
shall be true and correct.

                                  ARTICLE IV.
                        REPRESENTATIONS AND WARRANTIES

    The Borrower hereby expressly re-makes, in favor of the Lender, all of the
representations and warranties set forth in Article IV of the Agreement, and
represents and warrants that all such representations and warranties remain true
and unbreached.

                                       3
<PAGE>

                                  ARTICLE V.
                                 RATIFICATION

    Each of the parties hereto does hereby adopt, ratify, and confirm the
Agreement and the other Loan Documents, in all things in accordance with the
terms and provisions thereof, as amended by this Second Amendment.

                                  ARTICLE VI.
                                 MISCELLANEOUS

    6.01 Scope of Amendment. The scope of this Second Amendment is expressly
limited to the matters addressed herein and this Second Amendment shall not
operate as a waiver of any past, present, or future breach, Default, or Event of
Default under the Agreement, except to the extent, if any, that any such breach,
Default, or Event of Default is remedied by the effect of this Second Amendment.

    6.02 Agreement as Amended. All references to the Agreement in any document
heretofore or hereafter executed in connection with the transactions
contemplated in the Agreement shall be deemed to refer to the Agreement as
amended by this Second Amendment.

    6.03 Parties in Interest. All provisions of this Second Amendment shall be
binding upon and shall inure to the benefit of the Borrower, the Lender and
their respective successors and assigns.

    6.04 Rights of Third Parties. All provisions herein are imposed solely and
exclusively for the benefit of the Lender and the Borrower, and no other Person
shall have standing to require satisfaction of such provisions in accordance
with their terms and any or all of such provisions may be freely waived in whole
or in part by the Lender at any time if in its sole discretion it deems it
advisable to do so.

    6.05 ENTIRE AGREEMENT. THIS SECOND AMENDMENT CONSTITUTES THE ENTIRE
AGREEMENT BETWEEN THE PARTIES HERETO WITH RESPECT TO THE SUBJECT HEREOF AND
SUPERSEDES ANY PRIOR AGREEMENT, WHETHER WRITTEN OR ORAL, BETWEEN SUCH PARTIES
REGARDING THE SUBJECT HEREOF. FURTHERMORE IN THIS REGARD, THIS SECOND AMENDMENT,
THE AGREEMENT, THE NOTE, THE SECURITY INSTRUMENTS, AND THE OTHER WRITTEN
DOCUMENTS REFERRED TO IN THE AGREEMENT OR EXECUTED IN CONNECTION WITH OR AS
SECURITY FOR THE NOTE REPRESENT, COLLECTIVELY, THE FINAL AGREEMENT AMONG THE
PARTIES THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

                                       4
<PAGE>

    6.06 GOVERNING LAW. THIS SECOND AMENDMENT, THE AGREEMENT AND THE NOTE SHALL
BE DEEMED TO BE CONTRACTS MADE UNDER AND SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS. THE PARTIES ACKNOWLEDGE AND
AGREE THAT THIS AGREEMENT AND THE NOTE AND THE TRANSACTIONS CONTEMPLATED HEREBY
BEAR A NORMAL, REASONABLE, AND SUBSTANTIAL RELATIONSHIP TO THE STATE OF TEXAS.

    6.07 JURISDICTION AND VENUE. ALL ACTIONS OR PROCEEDINGS WITH RESPECT TO,
ARISING DIRECTLY OR INDIRECTLY IN CONNECTION WITH, OUT OF, RELATED TO, OR FROM
THIS SECOND AMENDMENT, THE AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE LITIGATED
IN COURTS HAVING SITUS IN HARRIS COUNTY, TEXAS. EACH OF THE BORROWER AND THE
LENDER HEREBY SUBMITS TO THE JURISDICTION OF ANY LOCAL, STATE, OR FEDERAL COURT
LOCATED IN HARRIS COUNTY, TEXAS, AND HEREBY WAIVES ANY RIGHTS IT MAY HAVE TO
TRANSFER OR CHANGE THE JURISDICTION OR VENUE OF ANY LITIGATION BROUGHT AGAINST
IT BY THE BORROWER OR THE LENDER IN ACCORDANCE WITH THIS SECTION.

    IN WITNESS WHEREOF, this Second Amendment to Credit Agreement is executed
effective the date first hereinabove written.

                                        BORROWER:

                                        DRIL-QUIP, INC.

                                        By:  /s/ J. MIKE WALKER
                                           -----------------------------
                                           J. Mike Walker
                                           Co-Chief Executive Officer

                                        LENDER:

                                        BANK ONE, TEXAS, NATIONAL ASSOCIATION

                                        By:  /s/ JONATHAN GREGORY
                                           -----------------------------
                                           Jonathan Gregory
                                           Vice President

                                       5
<PAGE>

                                   EXHIBIT I

                                 FORM OF NOTE

                                PROMISSORY NOTE

$40,000,000                      Houston, Texas                 January 24, 2001

    FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker") promises to
pay to the order of BANK ONE, TEXAS, NATIONAL ASSOCIATION ("Payee"), at its
banking quarters in Houston, Harris County, Texas, the sum of FORTY MILLION
DOLLARS ($40,000,000), or so much thereof as may be advanced against this Note
pursuant to the Credit Agreement dated of even date herewith by and between
Maker and Payee (as amended, restated, or supplemented from time to time, the
"Credit Agreement"), together with interest at the rates and calculated as
provided in the Credit Agreement.

    Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
holder hereof to accelerate the maturity of all amounts due hereunder.
Capitalized terms used but not defined in this Note shall have the meanings
assigned to such terms in the Credit Agreement.

    This Note is issued pursuant to, is the "Note" under, and is payable as
provided in the Credit Agreement. Subject to compliance with applicable
provisions of the Credit Agreement, Maker may at any time pay the full amount or
any part of this Note without the payment of any premium or fee, but such
payment shall not, until this Note is fully paid and satisfied, excuse the
payment as it becomes due of any payment on this Note provided for in the Credit
Agreement.

    THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF TEXAS
WITHOUT GIVING EFFECT TO PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW;
PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH REGULATES
CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY ACCOUNTS) SHALL
NOT APPLY TO THIS NOTE.

                                           DRIL-QUIP, INC.

                                           By:
                                              --------------------------------
                                              J. Mike Walker
                                              Co-Chief Executive Officer

                                      I-i

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                                  EXHIBIT IV

                                  DISCLOSURES

Section 4.7                     Liabilities

                                None

                                Litigation

                                None

Section 4.11                    Environmental Matters

                                None

Section 4.16                    Casualties

                                None

Section 4.18                    Subsidiaries

                                Dril-Quip (Europe), Limited
                                Dril-Quip Asia Pacific P.T.E., Ltd.
                                DQ Holding PTY, Ltd.
                                Dril-Quip Do Brasil Ltda.

                                     IV-i<PAGE>

[BANK OF SCOTLAND LETTERHEAD]

PRIVATE & CONFIDENTIAL
Dril-Quip (Europe) Limited
Stoneywood Park
DYCE
Aberdeen
AB21 7DZ

                                                                Our Ref: AJM/AGM

                                                                21st March, 2001

TERM LOAN

The Bank is pleased to offer a facility to the undernoted Borrower on the
following terms and conditions ("this Offer"):

1. MAIN FINANCIAL PROVISIONS

   1.1. Name and Address of each Borrower:

        Dril-Quip (Europe) Ltd (Company No. 81748) incorporated under the
        Companies Acts and having its Registered Office at 18 Golden Square,
        Aberdeen, AB10 1HA.

        Where there is more than one Borrower any reference to "the Borrower"
        shall mean and include each of the above and their obligations and
        liabilities under this facility shall be joint and several.

   1.2  Amount of facility: (Pounds)4,000,080

   1.3  Period of facility: 120 months from the date of the drawing under the
        facility.

   1.4  An Arrangement Fee of (Pounds)2,500 is payable on acceptance of this
        Offer and will be debited to the Servicing Account unless otherwise
        agreed.

   1.5  The Servicing Account is Account Number 00361710 with the Bank. The
        Borrower must ensure that at all times there are sufficient funds
        available in the Servicing Account to pay the amounts debited under this
        Offer as soon as those amounts are debited.

   1.6  Interest will be calculated by the Bank on a day-to-day basis on the
        outstanding balance of the facility owing to the Bank. Interest accruing
        will be debited to the Servicing Account on the last business day of
        each month. The interest rate will be 1% per annum over the Bank's Base
        Rate, as fluctuating from time to time.

<PAGE>

   1.7  The Bank's Base Rate at the date of this Offer is 5.75% per annum.
        Changes are notified in national newspapers and all the Bank's Branches.

   1.8  The amount drawn under the facility must be repaid as follows:

        Number of repayments: 120

        Amount of each repayment: (Pounds)33,334.00

        Repayments will be debited to the Servicing Account at intervals of one
        month commencing one month after the date of the drawing under the
        facility.

2. USE OF FACILITY

   The facility may be used only for capital costs relative to the development
   of a Base in Norway.

   Where the facility is to be used for the purchase of an asset (or assets) or
   property then any proceeds of sale of such asset (or assets) or property
   shall be paid to the Bank in reduction or repayment of the facility.

3. EARLY REPAYMENT OF THE FACILITY

   3.1  The facility may be repaid earlier than as specified in paragraph 1.8 of
        this Offer provided repayment takes place on the last business day of a
        calendar month and the Borrower shall give at least 30 days' prior
        notice to the Bank.

   3.2  If only part of the facility is repaid early the Borrower shall ensure
        that the repayments required under this Offer shall continue to be paid
        until all sums due under this Offer have been paid.

   3.3  Any sums repaid early may not be redrawn.

   3.4  This paragraph also applies where a Borrower is required to repay part
        of the facility early because an asset purchased by using the facility
        has been sold.

4. FINANCIAL INFORMATION

   Throughout the period the facility is available (including any extension of
   the facility) the Borrower must provide the Bank with the following financial
   information:

   Annual financial statements for the Company and the US parent, within twelve
   months after the end of the financial year to which they relate.

<PAGE>

5. EVENTS OF DEFAULT

   5.1. The Bank may declare that an event of default has occurred upon or at
        any time after the happening of any of the following events:

        (a) if the Borrower fails to pay any sum on the due date for payment
            under this Offer or any other sum due and payable to the Bank;

        (b) if a petition is presented or an order is made or resolution is
            passed for the bankruptcy, sequestration, winding-up or
            administration of the Borrower or (in Scotland) the appointment of a
            judicial factor to the Borrower;

        (c) if any diligence, distress, execution, sequestration or other legal
            process is levied or enforced or sued out against any of the assets
            of the Borrower;

        (d) if any person takes possession of, or a receiver is appointed over,
            the whole or any part of the assets of the Borrower;

        (e) if the Borrower ceases or suspends payment of sums due or is unable
            to pay debts as they fall due or is deemed unable to pay sums due or
            is deemed apparently insolvent under insolvency legislation;

        (f) if any of the events specified in clauses (a) to (e) inclusive above
            happen in regard to a Guarantor of the Borrower; or

        (g) if the Borrower is a limited company and control of the Borrower
            passes to any person without the Bank's prior consent which, consent
            will not be withheld unreasonably.

   5.2. If the Bank declares that an event of default has occurred the Bank may
        at (or at any time after) the time of making the declaration:

        (a) cancel the facility; and/or

        (b) demand immediate payment of the sums outstanding (in which case the
            sums outstanding shall become immediately due and payable by the
            Borrower) or declare that the sums outstanding shall become due and
            payable on demand; and/or

        (c) elect that interest at the default rate (being 2% over the rate
            specified in this Offer) will apply in which case interest under the
            facility will become payable at that rate before or after any court
            decree or judgement; and/or

        (d) charge an administration fee to compensate it for the additional
            time spent in administering the facility.
<PAGE>

6. GENERAL ADMINISTRATIVE PROVISIONS

   6.1. The Bank can withdraw this Offer at any time prior to acceptance.
        However, unless it is withdrawn, this Offer is open for acceptance which
        must reach the Bank within one calendar month of the date of this Offer.
        If this Offer, duly signed, is not received by the Bank within that
        period then, unless the Bank agrees otherwise, this Offer shall lapse.

   6.2. If the term loan remains undrawn three months from the date of this
        Offer (or such longer period as the Bank may agree) then it shall
        automatically cease to be available.

   6.3. A statement of the sums outstanding at any time and/or interest and/or
        charges due to the Bank at any time, duly certified by a Bank authorised
        official, shall (except where the Bank has made an obvious error) be
        final and conclusive.

   6.4. No delay by the Bank in exercising any right, power or privilege under
        this Offer shall prevent the Bank from exercising it at a later date and
        the Bank can exercise any of the powers conferred on more than one
        occasion.

   6.5. Unless the Bank otherwise agrees in this Offer, this Offer will be
        governed by the law of the country in which the branch of the Bank
        specified in this Offer is situated and the courts of that country will
        have jurisdiction in relation to any matter relating to this Offer.

   6.6. Any notice from the Bank shall be effectively given if sent by post to
        the Registered Office/place of business/residence of the addressee last
        known to the Bank. Any notice shall be deemed to have been given and
        received forty eight hours after being sent by first class post.

   6.7. The Borrower shall reimburse the Bank for all legal fees and expenses
        relating to this Offer and any security that may be required.

7. ADDITIONAL CONDITIONS

   7.2. Updated Valuation of the undernoted sites Secured to the Bank at
        Stoneywood Park, Dyce, Aberdeen to be provided to the Bank prior to
        drawdown, confirming a Value of at least (Pounds)6m. The cost of the
        Valuation to be met by the Company.
<PAGE>

8. SECURITY

   *  The following security ALREADY HELD by the Bank shall be available as
      security for the amounts owing to the Bank under this Offer (as well as
      for any other amounts covered by that security):

      Standard Security over 4.6 acre site, Stoneywood Park, Dyce, Aberdeen.

      Standard Security over office, workshop and yard on a 5.5 acre site at
      Stoneywood Park, Dyce, Aberdeen.

      Any security WHICH MAY SUBSEQUENTLY BE HELD by the Bank shall be available
      to secure the amounts owing to the Bank under this Offer and all other
      sums due to the Bank, to the full extent that the terms of such security
      permit.

      A charge of (Pounds)nil will be made to cover the Bank's security
      administration costs and will be debited on acceptance of this Offer. This
      is in addition to any costs and expenses charged by any firm of solicitors
      employed by the Bank to complete the documentation and procedures for the
      above security requirements which will be paid by the Borrower.

9. EMU COMPLIANCE

   If the introduction of, changeover to or operation of a single or unified
   European currency results in:

   (1) the currency in which the facility is provided changing or being replaced
       or the Bank (in its reasonable opinion) requiring to amend either this
       facility letter or the security held by the Bank due to changes in price
       sources for any European Union member state national currency or the ECU
       or market conventions relating to the calculation of interest; and/or

   (2) the Bank incurring an additional or increased cost in relation to its
       providing the facility;

   then the Borrower agrees that in the case of (1) above, it will permit the
facility letter and/or the security held by the Bank to be amended to the extent
necessary (in the Bank's reasonable opinion) to reflect those changed
circumstances and in the case of (2) above, to indemnify the Bank in respect of
that additional or increased cost.

                                               NOTE * = DELETE IF NOT APPLICABLE

<PAGE>

10. TIME LIMIT FOR ACCEPTANCE OF OFFER

    To accept this Offer, each Borrower named in paragraph 1.1. should please
sign below where indicated, and the completed Offer should be returned to the
Bank at the above address within one calendar month from the date of this Offer.
A duplicate of this Offer is enclosed for the Borrower to keep.

/s/ ALAN MITCHELL                       Date of Offer: 21 March 2001
---------------------------------
For and on behalf of the Bank

AS WITH ANY LEGALLY BINDING AGREEMENT WE RECOMMEND THAT YOU CONSULT YOUR
SOLICITOR, ACCOUNTANT OR OTHER INDEPENDENT PROFESSIONAL ADVISER BEFORE ACCEPTING
THIS OFFER.

We accept the above Offer.

Signed for and on behalf of Dril-Quip (Europe) Ltd:

/s/ W.E. YOUNGMAN             Director
-----------------------------

/s/ N.E. SKENE                Secretary
-----------------------------

         10/4/01              Date
-----------------------------

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