Dril-Quip (DRQ)

Item 1.01 Entry into a Material Definitive Agreement.

On March 9, 2006, the Nominating, Governance and Compensation Committee of the Board of Directors of Dril-Quip, Inc. (the “Company”) approved the payment of a cash bonus in the amount of $588,000 to each of Messrs. Larry E. Reimert, Gary D. Smith and J. Mike Walker, the Company’s three Co-Chief Executive Officers (the “Co-CEOs”), for the 2005 bonus period. In addition, the Nominating, Governance and Compensation Committee approved a cash bonus of $70,000 to Jerry M. Brooks, the Company’s Chief Financial Officer, for the 2005 bonus period.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 15, 2006

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Item 1.01 Entry into a Material Definitive Agreement.

On October 14, 2005, Dril-Quip, Inc. (the “Company”) entered into an indemnification agreement (the “Indemnification Agreement”) with John Lovoi pursuant to which the Company agrees to indemnify Mr. Lovoi, to the fullest extent permitted by applicable law, from and against any and all losses, liabilities, claims, damages and certain expenses arising out of an event or occurrence related to the fact that he is or was a director of the Company or is or was serving in another position at the request of the Company. Mr. Lovoi was elected as a director of the Company at its annual meeting of stockholders on May 12, 2005. The Indemnification Agreement is substantially similar to the Company’s indemnification agreements with its executive officers and other directors. The foregoing description is qualified by reference to the terms of the Indemnification Agreement, a copy of the form of which is attached as Exhibit 10.1.

Item 1.01 Entry into a Material Definitive Agreement.

On March 7, 2005, the Compensation Committee of the Board of Directors of Dril-Quip, Inc. (the “Company”) approved the payment of an annual performance bonus in the amount of $269,000 to each of Messrs. Larry E. Reimert, Gary D. Smith and J. Mike Walker, the Company’s three Co-Chief Executive Officers (the “Co-CEOs”), for the 2004 bonus period. These bonuses were calculated pursuant to the employment contracts each of the Co-CEOs entered into with the Company prior to the closing of the Company’s initial public offering. The bonus amount was determined by reference to (i) the Company’s performance in the 12-month period ending December 31, 2004 against the Company’s annual budget and (ii) the Company’s return on capital compared to that of a peer group of companies for the 12-month period ending September 30, 2004. In addition, the Compensation Committee approved a cash bonus of $50,000 to Jerry M. Brooks, the Company’s Chief Financial Officer, based on the Company’s and his performance in 2004.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 8, 2005

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