2004 Stock Option Waiver Letter Agreement between J. Mike Walker and Dril-Quip, Inc.
This agreement is between J. Mike Walker and Dril-Quip, Inc. Mr. Walker agrees to waive his right to receive stock options for the year 2004, as provided in his employment agreement, due to uncertainty about stock option accounting. He also waives his right to terminate his employment for 'Good Reason' specifically because of not receiving these options in 2004. All other rights and conditions in the employment agreement remain unchanged, and this waiver applies only to the 2004 stock option award.
Exhibit 10.3
October 28, 2004
Dril-Quip, Inc.
13550 Hempstead Hwy.
Houston, Texas 77040
Gentlemen:
In light of the current uncertainty surrounding stock option expensing, I hereby waive my right to receive an award of stock options in 2004 pursuant to Section 3.C of the Employment Agreement (the “Employment Agreement”) dated as of October 17, 1997 between myself and Dril-Quip, Inc. (the “Company”). Additionally, I hereby waive any right to terminate the Employment Agreement for Good Reason (as defined in the Employment Agreement) specifically caused by the Company’s failure to award such stock options in the year 2004 only. No other conditions or rights of the contract are waived and the right to receive an award of stock options is only waived for the year 2004.
| Very truly yours, |
| /s/ J. Mike Walker |
Accepted and Agreed as of the
date first written above.
| DRIL-QUIP, INC. | ||
| By: | /s/ Gary D. Smith | |
| Name: | Gary D. Smith | |
| Title: | Co-CEO | |
