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                                                                     Exhibit 4.5


                         REGISTRATION RIGHTS AGREEMENT
                              Dated March 20, 2002



                                     among



                                 DRESSER, INC.


                          THE GUARANTORS NAMED HEREIN



                                      and



                       MORGAN STANLEY & CO. INCORPORATED
                     CREDIT SUISSE FIRST BOSTON CORPORATION
<PAGE>
                          REGISTRATION RIGHTS AGREEMENT


            THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into as of March 20, 2002, by and among Dresser, Inc., a Delaware
corporation (the "Company"), the companies named on Schedule A hereto, as
guarantors (collectively, the "Guarantors" and, together with the Company, the
"Issuers"), and MORGAN STANLEY & CO. INCORPORATED and CREDIT SUISSE FIRST BOSTON
CORPORATION (collectively, the "Placement Agents").

            This Agreement is made pursuant to the Placement Agreement dated
March 20, 2002, by and among the Issuers and the Placement Agents (the
"Placement Agreement"), which provides for the sale by the Company to the
Placement Agents of an aggregate of $250,000,000 principal amount of the
Company's 9 3/8% Senior Subordinated Notes Due 2011 (the "Notes") and the
guarantees thereof by the Guarantors (the "Guarantees" and, together with the
Notes, the "Securities"). The Securities are being issued pursuant to an
indenture, dated April 10, 2001 (the "Indenture"), among the Issuers and State
Street Bank and Trust Company, as trustee (the "Trustee") as may be amended or
supplemented from time to time in accordance with the terms thereof. In order to
induce the Placement Agents to enter into the Placement Agreement, the Company
has agreed to provide to the Placement Agents and their direct and indirect
transferees the registration rights set forth in this Agreement. The execution
of this Agreement is a condition to the closing under the Placement Agreement.

            In consideration of the foregoing, the parties hereto agree as
follows:

            1.    Definitions.

            As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

            "1933 Act" shall mean the Securities Act of 1933, as amended from
time to time.

            "1934 Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

            "Additional Interest" shall have the meaning set forth in Section
2(d).

            "Closing Date" shall mean the Closing Date as defined in the
Placement Agreement.

            "Company" shall have the meaning set forth in the preamble and shall
also include the Company's successors.

            "Exchange Dates" shall have the meaning set forth in Section
2(a)(ii).

            "Exchange Offer" shall mean the exchange offer by the Issuers of
Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.


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            "Exchange Offer Registration" shall mean a registration under the
1933 Act effected pursuant to Section 2(a) hereof.

            "Exchange Offer Registration Statement" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form) and all amendments and supplements to such registration statement, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

            "Exchange Securities" shall mean Securities issued by the Issuers,
containing terms identical to the Securities (except that the Exchange
Securities will not contain restrictions on transfer) and to be offered to
Holders of Securities in exchange for Securities pursuant to the Exchange Offer.

            "Filing Date" means (i) with respect to an Exchange Offer
Registration Statement or the Shelf Registration Statement required to be filed
pursuant to Section 2(b)(i) or (ii), the earlier of the date of the filing
thereof with the SEC and the 90th day after the Issue Date and (ii) with respect
to the Shelf Registration Statement required to be filed pursuant to Section
2(b)(iii), the 60th day after the delivery of a notice pursuant to Section
2(b)(iii).

            "Guarantees" shall have the meaning set forth in the preamble.

            "Guarantors" shall have the meaning set forth in the preamble.

            "Holder" shall mean the Placement Agents, for so long as they own
any Registrable Securities, and each of their successors, assigns and direct and
indirect transferees who become registered owners of Registrable Securities
under the Indenture; provided that for purposes of Sections 4 and 5 of this
Agreement, the term "Holder" shall include Participating Broker-Dealers.

            "Indenture" shall have the meaning set forth in the preamble.

            "Issuers" shall have the meaning set forth in the preamble and shall
also include the Issuers' successors.

            "Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of outstanding Registrable Securities; provided that
whenever the consent or approval of Holders of a specified percentage of
Registrable Securities is required hereunder, Registrable Securities held by the
Issuers or any of their affiliates (as such term is defined in Rule 405 under
the 1933 Act) (other than the Placement Agents or subsequent Holders of
Registrable Securities if such subsequent holders are deemed to be such
affiliates solely by reason of their holding of such Registrable Securities)
shall not be counted in determining whether such consent or approval was given
by the Holders of such required percentage or amount.

            "Notes" shall have the meaning set forth in the preamble.

            "Participating Broker-Dealer" shall have the meaning set forth in
Section 4(a).


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            "Person" shall mean an individual, partnership, limited liability
company, corporation, trust or unincorporated organization, or a government or
agency or political subdivision thereof.

            "Placement Agents" shall have the meaning set forth in the preamble.

            "Placement Agreement" shall have the meaning set forth in the
preamble.

            "Prospectus" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, and in each case including
all material incorporated by reference therein.

            "Registration Expenses" shall mean any and all expenses incident to
performance of or compliance by the Issuers with this Agreement, including
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and
expenses incurred in connection with compliance with state securities or blue
sky laws (including reasonable fees and disbursements of counsel for any
underwriters or Holders in connection with blue sky qualification of any of the
Exchange Securities or Registrable Securities), (iii) all expenses of any
Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements
and other documents relating to the performance of and compliance with this
Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating
to the qualification of the Indenture under applicable securities laws, (vi) the
fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Issuers and, in the case of a Shelf
Registration Statement, the fees and disbursements of one counsel for the
Holders (which counsel shall be selected by the Majority Holders and which
counsel may also be counsel for the Placement Agents) and (viii) the fees and
disbursements of the independent public accountants of the Issuers, including
the expenses of any special audits or "cold comfort" letters required by or
incident to such performance and compliance, but excluding fees and expenses of
counsel to the underwriters (other than fees and expenses set forth in clause
(ii) above) or the Holders and underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of Registrable
Securities by a Holder.

            "Registrable Securities" shall mean the Securities; provided,
however, that the Securities shall cease to be Registrable Securities (i) when a
Registration Statement with respect to such Securities shall have been declared
effective under the 1933 Act and such Securities shall have been disposed of
pursuant to such Registration Statement, (ii) when such Securities have been
sold to the public pursuant to Rule 144 (or any similar provision then in force,
but not Rule 144A) under the 1933 Act or (iii) when such Securities shall have
ceased to be outstanding.


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<PAGE>
            "Registration Statement" shall mean any registration statement of
the Issuers that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements
to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

            "Securities" shall have the meaning set forth in the preamble.

            "SEC" shall mean the Securities and Exchange Commission.

            "Shelf Registration" shall mean a registration effected pursuant to
Section 2(b) hereof.

            "Shelf Registration Statement" shall mean a "shelf" registration
statement of the Issuers pursuant to the provisions of Section 2(b) of this
Agreement which covers all of the Registrable Securities (but no other
securities unless approved by the Holders whose Registrable Securities are
covered by such Shelf Registration Statement) on an appropriate form (which may
be an amendment to an Exchange Offer Registration Statement) under Rule 415
under the 1933 Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

            "Trustee" shall mean the trustee with respect to the Securities
under the Indenture.

            "Underwriter" shall have the meaning set forth in Section 3 hereof.

            "Underwritten Registration" or "Underwritten Offering" shall mean a
registration in which Registrable Securities are sold to an Underwriter for
reoffering to the public.

            2.    Registration Under the 1933 Act.

            (a)   To the extent not prohibited by any applicable law or
applicable interpretation of the Staff of the SEC, the Issuers shall use their
best efforts to cause to be filed an Exchange Offer Registration Statement
covering the offer by the Issuers to the Holders to exchange all of the
Registrable Securities for Exchange Securities and to have such Registration
Statement remain effective until the closing of the Exchange Offer. The Issuers
shall commence the Exchange Offer promptly after the Exchange Offer Registration
Statement has been declared effective by the SEC and use their best efforts to
have the Exchange Offer consummated not later than 60 days after such effective
date.

            The Issuers shall commence the Exchange Offer by mailing the related
exchange offer Prospectus and accompanying documents to each Holder stating, in
addition to such other disclosures as are required by applicable law:

            (i)   that the Exchange Offer is being made pursuant to this
      Registration Rights Agreement and that all Registrable Securities validly
      tendered will be accepted for exchange;


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            (ii)  the dates of acceptance of election of exchange (which shall
      be a period of at least 30 business days from the date such notice is
      mailed) (the "Exchange Dates");

            (iii) that any Registrable Security not tendered will remain
      outstanding and continue to accrue interest, but will not retain any
      rights under this Registration Rights Agreement;

            (iv)  that Holders electing to have a Registrable Security exchanged
      pursuant to the Exchange Offer will be required to surrender such
      Registrable Security, together with the enclosed letters of transmittal,
      to the institution and at the address (located in the Borough of
      Manhattan, The City of New York) specified in the notice prior to the
      close of business on the last Exchange Date; and

            (v)   that Holders will be entitled to withdraw their election, not
      later than the close of business on the last Exchange Date, by sending to
      the institution and at the address (located in the Borough of Manhattan,
      The City of New York) specified in the notice a telegram, telex, facsimile
      transmission or letter setting forth the name of such Holder, the
      principal amount of Registrable Securities delivered for exchange and a
      statement that such Holder is withdrawing his election to have such
      Securities exchanged.

            As soon as practicable after the last Exchange Date, the Issuers
shall:

            (i)   accept for exchange Registrable Securities or portions thereof
      tendered and not validly withdrawn pursuant to the Exchange Offer; and

            (ii)  deliver, or cause to be delivered, to the Trustee for
      cancellation all Registrable Securities or portions thereof so accepted
      for exchange and issue, and cause the Trustee to promptly authenticate and
      mail to each Holder, an Exchange Security equal in principal amount to the
      principal amount of the Registrable Securities surrendered by such Holder.

The Issuers shall use their best efforts to complete the Exchange Offer as
provided above and shall comply with the applicable requirements of the 1933
Act, the 1934 Act and other applicable laws and regulations in connection with
the Exchange Offer. The Exchange Offer shall not be subject to any material
conditions, other than that the Exchange Offer does not violate applicable law
or any applicable interpretation of the Staff of the SEC. The Issuers shall
inform the Placement Agents of the names and addresses of the Holders to whom
the Exchange Offer is made, and the Placement Agents shall have the right,
subject to applicable law, to contact such Holders and otherwise facilitate the
tender of Registrable Securities in the Exchange Offer.

            (b)   In the event that (i) the Issuers determine that the Exchange
Offer Registration provided for in Section 2(a) above is not available or may
not be consummated as soon as practicable after the last Exchange Date because
it would violate applicable law or the applicable interpretations of the Staff
of the SEC, (ii) the Exchange Offer is not for any other reason consummated by
210th day after the Issue Date or (iii) the Exchange Offer has been completed
and in the opinion of counsel for the Placement Agents a Registration Statement
must be filed and a Prospectus must be delivered by the Placement Agents in
connection with any offering or sale of Registrable Securities, the Issuers
shall use their best efforts to cause to be


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<PAGE>
filed as soon as practicable after such determination, date or notice of such
opinion of counsel is given to the Company, as the case may be, a Shelf
Registration Statement providing for the sale by the Holders of all of the
Registrable Securities and to have such Shelf Registration Statement declared
effective by the SEC. In the event the Issuers are required to file a Shelf
Registration Statement solely as a result of the matters referred to in clause
(iii) of the preceding sentence, the Issuers shall use their best efforts to
file and have declared effective by the SEC both an Exchange Offer Registration
Statement pursuant to Section 2(a) with respect to all Registrable Securities
and a Shelf Registration Statement (which may be a combined Registration
Statement with the Exchange Offer Registration Statement) with respect to offers
and sales of Registrable Securities held by the Placement Agents after
completion of the Exchange Offer. The Issuers agree to use their best efforts to
keep the Shelf Registration Statement continuously effective until the
expiration of the period referred to in Rule 144(k) with respect to the
Registrable Securities or such shorter period that will terminate when all of
the Registrable Securities covered by the Shelf Registration Statement have been
sold pursuant to the Shelf Registration Statement. The Issuers further agree to
supplement or amend the Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the
Issuers for such Shelf Registration Statement or by the 1933 Act or by any other
rules and regulations thereunder for shelf registration or if reasonably
requested by a Holder with respect to information relating to such Holder, and
to use their best efforts to cause any such amendment to become effective and
such Shelf Registration Statement to become usable as soon as thereafter
practicable. The Issuers agree to furnish to the Holders of Registrable
Securities copies of any such supplement or amendment promptly after its being
used or filed with the SEC.

            (c)   The Issuers shall pay all Registration Expenses in connection
with the registration pursuant to Section 2(a) or Section 2(b). Each Holder
shall pay all underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder's Registrable Securities
pursuant to the Shelf Registration Statement.

            (d)   An Exchange Offer Registration Statement pursuant to Section
2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC; provided, however, that, if, after it has been declared
effective, the offering of Registrable Securities pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or other
order or requirement of the SEC or any other governmental agency or court, such
Registration Statement will be deemed not to have become effective during the
period of such interference until the offering of Registrable Securities
pursuant to such Registration Statement may legally resume. As provided for in
the Indenture, in the event the Exchange Offer is not consummated and the Shelf
Registration Statement is not declared effective as set forth below, then, the
interest rate on the Securities will be increased (the "Additional Interest") as
follows:

            (i)   if (A) neither the Exchange Offer Registration Statement nor a
      Shelf Registration Statement has been filed with the SEC on or prior to
      the 90th day after the Issue Date or (B) the Issuers are required to file
      a Shelf Registration Statement pursuant to Section 2(b)(iii) hereof and
      such Shelf Registration Statement is not filed on or prior to the Filing
      Date applicable thereto then, commencing on the day after either such 90th
      day in the case of clause (A) or such Filing Date in the case of clause
      (B), Additional Interest shall accrue on the principal amount of the
      Registrable Securities at a rate of 0.25% per


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<PAGE>
      annum for the first 90 days immediately following thereafter, and such
      Additional Interest rate shall increase by an additional 0.25% per annum
      at the beginning of each subsequent 90-day period; or

            (ii)  if (A) neither the Exchange Offer Registration Statement nor a
      Shelf Registration Statement is declared effective by the SEC on or prior
      to the 180th day after the Issue Date or (B) the Issuers are required to
      file a Shelf Registration Statement pursuant to Section 2(b)(iii) hereof
      and such Shelf Registration Statement is not declared effective by the SEC
      on or prior to the 90th day following the Filing Date applicable thereto
      then, commencing on the day after either such 180th day in the case of
      clause (A) or Filing Date in the case of clause (B), Additional Interest
      shall accrue on the principal amount of the Registrable Securities at a
      rate of 0.25% per annum for the first 90 days immediately following
      thereafter, and such Additional Interest rate shall increase by an
      additional 0.25% per annum at the beginning of each subsequent 90-day
      period; or

            (iii) subject to Sections 2(f) and 2(g) if (A) the Issuers have not
      exchanged Exchange Securities for all Securities validly tendered in
      accordance with the terms of the Exchange Offer on or prior to the 210th
      day after the Issue Date or (B) if applicable, the Shelf Registration
      Statement has been declared effective and such Shelf Registration
      Statement ceases to be effective at any time prior to the second
      anniversary of the Closing Date (or, if earlier, the date when all
      Securities have been disposed of thereunder), then Additional Interest
      shall accrue on the principal amount of the Registrable Securities at a
      rate of 0.25% per annum for the first 90 days commencing on (x) the 211th
      day after the Closing Date, in the case of (A) above, or (y) the day such
      Shelf Registration Statement ceases to be effective in the case of (B)
      above, and such Additional Interest rate shall increase by an additional
      0.25% per annum at the beginning of each subsequent 90-day period;

provided, however, that the Additional Interest rate on the Securities may not
exceed in the aggregate 1.0% per annum; provided further, that the Issuers shall
in no event be required to pay additional interest for more than one event in
clauses (i), (ii), or (iii) at any one time; provided further, however, that (1)
upon the filing of the Exchange Offer Registration Statement or a Shelf
Registration Statement (in the case of clause (a) above), (2) upon the
effectiveness of the Exchange Offer Registration or a Shelf Registration
Statement (in the case of clause (b) above), or (3) upon the exchange of
Exchange Securities for all Securities tendered (in the case of clause (c)(A)
above), or upon the effectiveness of the Shelf Registration Statement which had
ceased to remain effective (in the case of clause (c)(B) above), Additional
Interest on the Securities as a result of such clause (or the relevant subclause
thereof), as the case may be, shall cease to accrue.

            (e)   Without limiting the remedies available to the Placement
Agents and the Holders, the Issuers acknowledge that any failure by the Issuers
to comply with their obligations under Section 2(a) and Section 2(b) hereof may
result in material irreparable injury to the Placement Agents or the Holders for
which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Placement Agents or any Holder may obtain such relief as may be
required to specifically enforce any Issuer's obligations under Section 2(a) and
Section 2(b) hereof.


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<PAGE>
            3.    Registration Procedures.

            In connection with the obligations of the Issuers with respect to
the Registration Statements pursuant to Section 2(a) and Section 2(b) hereof,
each of the Issuers shall as expeditiously as possible:

            (a)   prepare and file with the SEC a Registration Statement on the
      appropriate form under the 1933 Act, which form (x) shall be selected by
      the Issuers and (y) shall, in the case of a Shelf Registration, be
      available for the sale of the Registrable Securities by the selling
      Holders thereof and (z) shall comply as to form in all material respects
      with the requirements of the applicable form and include all financial
      statements required by the SEC to be filed therewith, and use its best
      efforts to cause such Registration Statement to become effective and
      remain effective in accordance with Section 2 hereof;

            (b)   prepare and file with the SEC such amendments and
      post-effective amendments to each Registration Statement as may be
      necessary to keep such Registration Statement effective for the applicable
      period and cause each Prospectus to be supplemented by any required
      prospectus supplement and, as so supplemented, to be filed pursuant to
      Rule 424 under the 1933 Act; to keep each Prospectus current during the
      period described under Section 4(3) and Rule 174 under the 1933 Act that
      is applicable to transactions by brokers or dealers with respect to the
      Registrable Securities or Exchange Securities;

            (c)   in the case of a Shelf Registration, furnish to each Holder of
      Registrable Securities, to counsel for the Placement Agents, to counsel
      for the Holders and to each Underwriter of an Underwritten Offering of
      Registrable Securities, if any, without charge, as many copies of each
      Prospectus, including each preliminary Prospectus, and any amendment or
      supplement thereto and such other documents as such Holder or Underwriter
      may reasonably request, in order to facilitate the public sale or other
      disposition of the Registrable Securities; and the Issuers consent to the
      use of such Prospectus and any amendment or supplement thereto in
      accordance with applicable law by each of the selling Holders of
      Registrable Securities and any such Underwriters in connection with the
      offering and sale of the Registrable Securities covered by and in the
      manner described in such Prospectus or any amendment or supplement thereto
      in accordance with applicable law;

            (d)   use their best efforts to register or qualify the Registrable
      Securities under all applicable state securities or "blue sky" laws of
      such jurisdictions as any Holder of Registrable Securities covered by a
      Registration Statement shall reasonably request in writing by the time the
      applicable Registration Statement is declared effective by the SEC, to
      cooperate with such Holders in connection with any filings required to be
      made with the National Association of Securities Dealers, Inc. and do any
      and all other acts and things which may be reasonably necessary or
      advisable to enable such Holder to consummate the disposition in each such
      jurisdiction of such Registrable Securities owned by such Holder;
      provided, however, that the Issuers shall not be required to (i) qualify
      as a foreign corporation or as a dealer in securities in any jurisdiction
      where it would not otherwise be required to qualify but for this Section
      3(d), (ii) file any general


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<PAGE>
      consent to service of process or (iii) subject itself to taxation in any
      such jurisdiction if it is not so subject;

            (e)   in the case of a Shelf Registration, notify each Holder of
      Registrable Securities, counsel for the Holders and counsel for the
      Placement Agents promptly and, if requested by any such Holder or counsel,
      confirm such advice in writing (i) when a Registration Statement has
      become effective and when any post-effective amendment thereto has been
      filed and becomes effective, (ii) of any request by the SEC or any state
      securities authority for amendments and supplements to a Registration
      Statement and Prospectus or for additional information after the
      Registration Statement has become effective, (iii) of the issuance by the
      SEC or any state securities authority of any stop order suspending the
      effectiveness of a Registration Statement or the initiation of any
      proceedings for that purpose, (iv) if, between the effective date of a
      Registration Statement and the closing of any sale of Registrable
      Securities covered thereby, the representations and warranties of the
      Issuers contained in any underwriting agreement, securities sales
      agreement or other similar agreement, if any, relating to the offering
      cease to be true and correct in all material respects or if the Issuers
      receive any notification with respect to the suspension of the
      qualification of the Registrable Securities for sale in any jurisdiction
      or the initiation of any proceeding for such purpose, (v) of the happening
      of any event during the period a Shelf Registration Statement is effective
      which makes any statement made in such Registration Statement or the
      related Prospectus untrue in any material respect or which requires the
      making of any changes in such Registration Statement or Prospectus in
      order to make the statements therein not misleading and (vi) of any
      determination by the Issuers that a post-effective amendment to a
      Registration Statement would be appropriate;

            (f)   make every reasonable effort to obtain the withdrawal of any
      order suspending the effectiveness of a Registration Statement at the
      earliest possible moment and provide immediate notice to each Holder of
      the withdrawal of any such order;

            (g)   in the case of a Shelf Registration, furnish to each Holder of
      Registrable Securities, without charge, at least one conformed copy of
      each Registration Statement and any post-effective amendment thereto
      (without documents incorporated therein by reference or exhibits thereto,
      unless requested);

            (h)   in the case of a Shelf Registration, cooperate with the
      selling Holders of Registrable Securities to facilitate the timely
      preparation and delivery of certificates representing Registrable
      Securities to be sold and not bearing any restrictive legends and enable
      such Registrable Securities to be in such denominations (consistent with
      the provisions of the Indenture) and registered in such names as the
      selling Holders may reasonably request at least one business day prior to
      the closing of any sale of Registrable Securities;

            (i)   in the case of a Shelf Registration, upon the occurrence of
      any event contemplated by Section 3(e)(v) hereof, use their best efforts
      to prepare and file with the SEC a supplement or post-effective amendment
      to a Registration Statement or the related Prospectus or any document
      incorporated therein by reference or file any other required


                                       9
<PAGE>
      document so that, as thereafter delivered to the purchasers of the
      Registrable Securities, such Prospectus will not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements therein, in light of the circumstances under which
      they were made, not misleading. The Issuers agree to notify the Holders to
      suspend use of the Prospectus as promptly as practicable after the
      occurrence of such an event, and the Holders hereby agree to suspend use
      of the Prospectus until the Issuers have amended or supplemented the
      Prospectus to correct such misstatement or omission;

            (j)   a reasonable time prior to the filing of any Registration
      Statement, any Prospectus, any amendment to a Registration Statement or
      amendment or supplement to a Prospectus or any document which is to be
      incorporated by reference into a Registration Statement or a Prospectus
      after initial filing of a Registration Statement, provide copies of such
      document to the Placement Agents and their counsel (and, in the case of a
      Shelf Registration Statement, the Holders and their counsel) and make such
      of the representatives of the Issuers as shall be reasonably requested by
      the Placement Agents or their counsel (and, in the case of a Shelf
      Registration Statement, the Holders or their counsel) available for
      discussion of such document, and shall not at any time file or make any
      amendment to the Registration Statement, any Prospectus or any amendment
      of or supplement to a Registration Statement or a Prospectus or any
      document which is to be incorporated by reference into a Registration
      Statement or a Prospectus, of which the Placement Agents and their counsel
      (and, in the case of a Shelf Registration Statement, the Holders and their
      counsel) shall not have previously been advised and furnished a copy or to
      which the Placement Agents or their counsel (and, in the case of a Shelf
      Registration Statement, the Holders or their counsel) shall reasonably
      object within 5 days after receipt thereof;

            (k)   obtain a CUSIP number for all Exchange Securities or
      Registrable Securities, as the case may be, not later than the effective
      date of a Registration Statement;

            (l)   cause the Indenture to be qualified under the Trust Indenture
      Act of 1939, as amended (the "TIA"), in connection with the registration
      of the Exchange Securities or Registrable Securities, as the case may be,
      cooperate with the Trustee and the Holders to effect such changes to the
      Indenture as may be required for the Indenture to be so qualified in
      accordance with the terms of the TIA and execute, and use its best efforts
      to cause the Trustee to execute, all documents as may be required to
      effect such changes and all other forms and documents required to be filed
      with the SEC to enable the Indenture to be so qualified in a timely
      manner;

            (m)   in the case of a Shelf Registration, make available for
      inspection by a representative of the Holders of the Registrable
      Securities, any Underwriter participating in any disposition pursuant to
      such Shelf Registration Statement, and attorneys and accountants
      designated by the Holders, at reasonable times and in a reasonable manner,
      all financial and other records, pertinent documents and properties of the
      Issuers and subsidiaries of the Issuers, and cause the respective
      officers, directors and employees of the Issuers and any of their
      subsidiaries to supply all information reasonably requested by any such
      representative, Underwriter, attorney or accountant in connection with a
      Shelf


                                       10
<PAGE>
      Registration Statement; provided that any such representative, Underwriter
      or other recipient shall agree in writing that any information designated
      as confidential by the Company shall be kept confidential by such
      recipient except to the extent reasonably necessary in connection with an
      offering.

            (n)   in the case of a Shelf Registration, use their commercially
      reasonable efforts to cause all Registrable Securities to be listed on any
      securities exchange or any automated quotation system on which similar
      securities issued by the Issuer are then listed if requested by the
      Majority Holders, to the extent such Registrable Securities satisfy
      applicable listing requirements;

            (o)   if reasonably requested by any Holder of Registrable
      Securities covered by a Registration Statement, (i) promptly incorporate
      in a Prospectus supplement or post-effective amendment such information
      with respect to such Holder as such Holder reasonably requests to be
      included therein and (ii) make all required filings of such Prospectus
      supplement or such post-effective amendment as soon as the Issuers have
      received notification of the matters to be incorporated in such filing;
      and

            (p)   in the case of a Shelf Registration, enter into such customary
      agreements and take all such other actions in connection therewith
      (including those requested by the Holders of a majority of the Registrable
      Securities being sold) in order to expedite or facilitate the disposition
      of such Registrable Securities including, but not limited to, an
      Underwritten Offering and in such connection, (i) to the extent possible,
      make such representations and warranties to the Holders and any
      Underwriters of such Registrable Securities with respect to the business
      of the Issuers and their subsidiaries, the Registration Statement,
      Prospectus and documents incorporated by reference or deemed incorporated
      by reference, if any, in each case, in form, substance and scope as are
      customarily made by Issuers to underwriters in underwritten offerings and
      confirm the same if and when requested, (ii) obtain opinions of counsel to
      the Issuers (which counsel and opinions, in form, scope and substance,
      shall be reasonably satisfactory to the Holders and such Underwriters and
      their respective counsel) addressed to each selling Holder and Underwriter
      of Registrable Securities, covering the matters customarily covered in
      opinions requested in underwritten offerings, (iii) obtain "cold comfort"
      letters from the independent certified public accountants of the Issuers
      (and, if necessary, any other certified public accountant of any
      subsidiary of the Issuers, or of any business acquired by the Issuers for
      which financial statements and financial data are or are required to be
      included in the Registration Statement) addressed to each selling Holder
      and Underwriter of Registrable Securities, such letters to be in customary
      form and covering matters of the type customarily covered in "cold
      comfort" letters in connection with underwritten offerings, and (iv)
      deliver such documents and certificates as may be reasonably requested by
      the Holders of a majority in principal amount of the Registrable
      Securities being sold or the Underwriters, and which are customarily
      delivered in underwritten offerings, to evidence the continued validity of
      the representations and warranties of the Issuers made pursuant to clause
      (i) above and to evidence compliance with any customary conditions
      contained in an underwriting agreement.


                                       11
<PAGE>
            In the case of a Shelf Registration Statement, the Issuers may
require each Holder of Registrable Securities to furnish to the Issuers such
information regarding the Holder and the proposed distribution by such Holder of
such Registrable Securities as the Issuers may from time to time reasonably
request in writing.

            In the case of a Shelf Registration Statement, each Holder agrees
that, upon receipt of any notice from the Issuers of the happening of any event
of the kind described in Section 3(c)(iii) or 3(e)(v) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to a
Registration Statement until such Holder's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof, and, if
so directed by the Issuers, such Holder will deliver to the Issuers (at its
expense) all copies in its possession, other than permanent file copies then in
such Holder's possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice. If the Issuers shall give any
such notice to suspend the disposition of Registrable Securities pursuant to a
Registration Statement, the Issuers shall extend the period during which the
Registration Statement shall be maintained effective pursuant to this Agreement
by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Holders shall have
received copies of the supplemented or amended Prospectus necessary to resume
such dispositions. The Issuers may give any such notice only twice during any
365 day period and any such suspensions may not exceed 45 days for each
suspension and there may not be more than two suspensions in effect during any
365 day period.

            The Holders of Registrable Securities covered by a Shelf
Registration Statement who desire to do so may sell such Registrable Securities
in an Underwritten Offering. In any such Underwritten Offering, the investment
banker or investment bankers and manager or managers (the "Underwriters") that
will administer the offering will be selected by the Majority Holders of the
Registrable Securities included in such offering.

            4.    Participation of Broker-Dealers in Exchange Offer.

            (a)   The Staff of the SEC has taken the position that any
broker-dealer that receives Exchange Securities for its own account in the
Exchange Offer in exchange for Securities that were acquired by such
broker-dealer as a result of market-making or other trading activities (a
"Participating Broker-Dealer"), may be deemed to be an "underwriter" within the
meaning of the 1933 Act and must deliver a prospectus meeting the requirements
of the 1933 Act in connection with any resale of such Exchange Securities.

            The Issuers understand that it is the Staff's position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means by
which Participating Broker-Dealers may resell the Exchange Securities, without
naming the Participating Broker-Dealers or specifying the amount of Exchange
Securities owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery obligation under the 1933
Act in connection with resales of Exchange Securities for their own accounts, so
long as the Prospectus otherwise meets the requirements of the 1933 Act.


                                       12
<PAGE>
            (b)   In light of the above, notwithstanding the other provisions of
this Agreement, the Issuers agree that the provisions of this Agreement as they
relate to a Shelf Registration shall also apply to an Exchange Offer
Registration to the extent, and with such reasonable modifications thereto as
may be, reasonably requested by the Placement Agents or by one or more
Participating Broker-Dealers, in each case as provided in clause (ii) below, in
order to expedite or facilitate the disposition of any Exchange Securities by
Participating Broker-Dealers consistent with the positions of the Staff recited
in Section 4(a) above; provided that:

            (i)   the Issuers shall not be required to amend or supplement the
      Prospectus contained in the Exchange Offer Registration Statement, as
      would otherwise be contemplated by Section 3(i), for a period exceeding
      180 days after the last Exchange Date (as such period may be extended
      pursuant to the penultimate paragraph of Section 3 of this Agreement) and
      Participating Broker-Dealers shall not be authorized by the Issuers to
      deliver and shall not deliver such Prospectus after such period in
      connection with the resales contemplated by this Section 4; and

            (ii)  the application of the Shelf Registration procedures set forth
      in Section 3 of this Agreement to an Exchange Offer Registration, to the
      extent not required by the positions of the Staff of the SEC or the 1933
      Act and the rules and regulations thereunder, will be in conformity with
      the reasonable request to the Issuers by the Placement Agents or with the
      reasonable request in writing to the Issuers by one or more broker-dealers
      who certify to the Placement Agents and the Issuers in writing that they
      anticipate that they will be Participating Broker-Dealers; and provided
      further that, in connection with such application of the Shelf
      Registration procedures set forth in Section 3 to an Exchange Offer
      Registration, the Company shall be obligated (x) to deal only with one
      entity representing the Participating Broker-Dealers, which shall be
      Morgan Stanley & Co. Incorporated unless it elects not to act as such
      representative, (y) to pay the fees and expenses of only one counsel
      representing the Participating Broker-Dealers, which shall be counsel to
      the Placement Agents unless such counsel elects not to so act and (z) to
      cause to be delivered only one, if any, "cold comfort" letter with respect
      to the Prospectus in the form existing on the last Exchange Date and with
      respect to each subsequent amendment or supplement, if any, effected
      during the period specified in clause (i) above.

            (c)   The Placement Agents shall have no liability to the Issuers or
any Holder with respect to any request that it may make pursuant to Section 4(b)
above.

            5.    Indemnification and Contribution.

            (a)   Each of the Issuers, jointly and severally, agrees to
indemnify and hold harmless the Placement Agents, each Holder and each Person,
if any, who controls any Placement Agent or any Holder within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under
common control with, or is controlled by, any Placement Agent or any Holder,
from and against all losses, claims, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred by the Placement
Agent, any Holder or any such controlling or affiliated Person in connection
with defending or investigating any such action or claim) caused by any untrue
statement or alleged untrue statement of a


                                       13
<PAGE>
material fact contained in any Registration Statement (or any amendment thereto)
pursuant to which Exchange Securities or Registrable Securities were registered
under the 1933 Act, including all documents incorporated therein by reference,
or caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or caused by any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (as amended or supplemented if the
Issuers shall have furnished any amendments or supplements thereto), or caused
by any omission or alleged omission to state therein a material fact necessary
to make the statements therein in light of the circumstances under which they
were made not misleading, except insofar as such losses, claims, damages or
liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information relating to the Placement
Agents or any Holder furnished to the Issuers in writing through Morgan Stanley
& Co. Incorporated or any selling Holder expressly for use therein. In
connection with any Underwritten Offering permitted by Section 3, the Issuers
will also indemnify the Underwriters, if any, selling brokers, dealers and
similar securities industry professionals participating in the distribution,
their officers and directors and each Person who controls such Persons (within
the meaning of the 1933 Act and the 1934 Act) to the same extent as provided
above with respect to the indemnification of the Holders, if requested in
connection with any Registration Statement.

            (b)   Each Holder agrees, severally and not jointly, to indemnify
and hold harmless the Issuers, the Placement Agents and the other selling
Holders, and each of their respective directors, officers who sign the
Registration Statement and each Person, if any, who controls the Issuers, any
Placement Agent and any other selling Holder within the meaning of either
Section 15 of the 1933 Act or Section 20 of the 1934 Act to the same extent as
the foregoing indemnity from the Issuers to the Placement Agents and the
Holders, but only with reference to information relating to such Holder
furnished to the Issuers in writing by such Holder expressly for use in any
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto).

            (c)   In case any proceeding (including any governmental
investigation) shall be instituted involving any Person in respect of which
indemnity may be sought pursuant to either paragraph (a) or paragraph (b) above,
such Person (the "indemnified party") shall promptly notify the Person against
whom such indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and
shall pay the fees and disbursements of such counsel related to such proceeding.
In any such proceeding, any indemnified party shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense
of such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the indemnifying party
shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for (a) the fees and expenses of more than one separate
firm (in addition to any local counsel) for the Placement Agents and all
Persons, if any, who control any Placement Agent within the meaning of either
Section 15 of the 1933 Act or


                                       14
<PAGE>
Section 20 of the 1934 Act, (b) the fees and expenses of more than one separate
firm (in addition to any local counsel) for the Company, their directors, their
officers who sign the Registration Statement and each Person, if any, who
controls the Company within the meaning of either such Section and (c) the fees
and expenses of more than one separate firm (in addition to any local counsel)
for all Holders and all Persons, if any, who control any Holders within the
meaning of either such Section, and that all such fees and expenses shall be
reimbursed as they are incurred. In such case involving the Placement Agents and
Persons who control the Placement Agents, such firm shall be designated in
writing by Morgan Stanley & Co. Incorporated. In such case involving the Holders
and such Persons who control Holders, such firm shall be designated in writing
by the Majority Holders. In all other cases, such firm shall be designated by
the Company. The indemnifying party shall not be liable for any settlement of
any proceeding effected without its written consent but, if settled with such
consent or if there be a final judgment for the plaintiff, the indemnifying
party agrees to indemnify the indemnified party from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding the
foregoing sentence, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel as contemplated by the second and third sentences of this paragraph, the
indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed the
indemnified party for such fees and expenses of counsel in accordance with such
request prior to the date of such settlement. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which such
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

            (d)   If the indemnification provided for in paragraph (a) or
paragraph (b) of this Section 5 is unavailable to an indemnified party or
insufficient in respect of any losses, claims, damages or liabilities, then each
indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified
party or parties on the other hand in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. The relative fault of the
Issuers and the Holders shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Issuers or by the Holders and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Holders' respective obligations to contribute
pursuant to this Section 5(d) are several in proportion to the respective
principal amount of Registrable Securities of such Holder that were registered
pursuant to a Registration Statement.

            (e)   The Issuers and each Holder agree that it would not be just or
equitable if contribution pursuant to this Section 5 were determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in


                                       15
<PAGE>
paragraph (d) above. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages and liabilities referred to in paragraph
(d) above shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 5, no Holder shall be required to
indemnify or contribute any amount in excess of the amount by which the total
price at which Registrable Securities were sold by such Holder exceeds the
amount of any damages that such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the 1933 Act) shall be entitled to contribution from any
Person who was not guilty of such fraudulent misrepresentation. The remedies
provided for in this Section 5 are not exclusive and shall not limit any rights
or remedies which may otherwise be available to any indemnified party at law or
in equity.

            The indemnity and contribution provisions contained in this Section
5 shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
the Placement Agents, any Holder or any Person controlling any Placement Agent
or any Holder, or by or on behalf of the Company, their officers or directors or
any Person controlling the Issuers, (iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities pursuant to a Shelf
Registration Statement.

            6.    Miscellaneous.

            (a)   No Inconsistent Agreements. None of the Issuers has entered
into, and on or after the date of this Agreement will not enter into, any
agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders of
the Issuers' other issued and outstanding securities under any such agreements.

            (b)   Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Issuers have obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement,
waiver or consent; provided, however, that no amendment, modification,
supplement, waiver or consent to any departure from the provisions of Section 5
hereof shall be effective as against any Holder of Registrable Securities unless
consented to in writing by such Holder.

            (c)   Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (i) if to a Holder, at the most current address given by such Holder to
the Issuers by means of a notice given in accordance with the provisions of this
Section 6(c), which address initially is, with respect to the Placement Agents,
the address set forth in the Placement Agreement; and (ii) if to the Issuers,
initially at the Company's addresses set forth in the Placement Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c).


                                       16
<PAGE>
            All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
business days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

            Copies of all such notices, demands, or other communications shall
be concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the Indenture.

            (d)   Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Placement Agreement. If any
transferee of any Holder shall acquire Registrable Securities, in any manner,
whether by operation of law or otherwise, such Registrable Securities shall be
held subject to all of the terms of this Agreement, and by taking and holding
such Registrable Securities such Person shall be conclusively deemed to have
agreed to be bound by and to perform all of the terms and provisions of this
Agreement and such Person shall be entitled to receive the benefits hereof. The
Placement Agents (in their capacity as Placement Agents) shall have no liability
or obligation to the Issuers with respect to any failure by a Holder to comply
with, or any breach by any Holder of, any of the obligations of such Holder
under this Agreement.

            (e)   Purchases and Sales of Securities. Until the earlier of (1)
two years after the Closing Date and (2) the consummation of the Exchange Offer,
the Issuers shall not, and shall use their best efforts to cause its affiliates
(as defined in Rule 405 under the 1933 Act) not to, purchase and then resell or
otherwise transfer any Securities, unless such Securities are held in the form
of a non-global note.

            (f)   Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Issuers, on the one
hand, and the Placement Agents, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder.

            (g)   Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

            (h)   Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

            (i)   Governing Law. This Agreement shall be governed by the laws of
the State of New York.


                                       17
<PAGE>
            (j)   Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.


                                       18
<PAGE>
            IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.

                                               DRESSER, INC.


                                               By_______________________________
                                                 Name:
                                                 Title:


                                               DRESSER INTERNATIONAL INC.


                                               By_______________________________
                                                 Name:
                                                 Title:


                                               DRESSER RUSSIA, INC.


                                               By_______________________________
                                                 Name:
                                                 Title:


                                               DRESSER RE, INC.


                                               By_______________________________
                                                 Name:
                                                 Title:


                                               DRESSER ENTECH, INC.


                                               By_______________________________
                                                 Name:
                                                 Title:


                                               RING-O VALVE, INCORPORATED


                                               By_______________________________
                                                 Name:
                                                 Title:


                                       19
<PAGE>
                                               LVF HOLDING CORPORATION


                                               By_______________________________
                                                 Name:
                                                 Title:




Confirmed and accepted as of
  the date first above written:

MORGAN STANLEY & CO. INCORPORATED
CREDIT SUISSE FIRST BOSTON CORPORATION


By: MORGAN STANLEY & CO. INCORPORATED

By_______________________________
  Name:
  Title:


                                       20
<PAGE>
                                   Schedule A



Dresser International Inc.

Dresser Russia, Inc.

Dresser RE, Inc.

Dresser Entech, Inc.

Ring-O Valve, Incorporated

LVF Holding Corporation


                                       21