Document:

exv10w2

 

Exhibit 10.2

March 17, 2004

Via Hand Delivery

Mr. Andrew Szescila

6307 Prague Street

Houston, TX 77007

Dear Andy:

The purpose of this letter (the “Agreement”) is to set forth certain agreements
and understandings regarding, among other things:

	•	 	Your agreement to certain obligations of cooperation,
confidentiality, and non-competition; and
	 
	•	 	Your agreement to provide consulting services and the
Company’s agreement to compensate you for those services.

When you and I have signed this letter, it will constitute a complete agreement
on all of these issues.

	1.	 	AGREEMENTS:

	A.	 	Cooperation and Assistance. You agree, acknowledge, and
certify that:

	(a)	 	you are aware that the Company is currently under
investigation by the Securities and Exchange Commission and the
Department of Justice;
	 
	(b)	 	you have (i) not engaged in, nor encouraged any
individual, in any way, to engage in the destruction or secreting
of any information, in any form, including but not limited to
documents and emails, (“documentation”) that might be relevant to
the investigation referenced in 1 A (a) above; (ii) turned over
all documentation in response to prior requests; and (iii)
responded, fully and truthfully, to all questions related to or
arising from the subject matter of such investigation that have
been posed to you by employees or representatives of the Company;

	 	 	 	 	 
	Initials: AJS MEW

	 	 	1	 

 

 

Exhibit 10.2

	(c)	 	for a period of two years after the date of the
termination of your employment (the “Effective Date”), you will
cooperate fully upon reasonable request with the Company and its
affiliates, past or present, in connection with any internal
investigation initiated by the Company, its affiliates, and any successors in interest, as well as with any external investigation
initiated by the government or agency or instrumentality thereof;
	 
	(d)	 	for a period of two years after the Effective Date,
upon reasonable request of the Company, any subsidiary of the
Company, or any successor thereof, you will provide all
documentation and information related to any internal or external
investigation of the Company and its affiliates; and
	 
	(e)	 	two years after the Effective Date, you will cooperate
with the Company and its affiliates as described herein at your
option, upon payment of all reasonable expenses reasonably
incurred, with such agreement to cooperate not to be unreasonably
withheld.

	B.	 	Agreement Not to Compete in Order to Protect Confidential
Information. You already possess, and the Company agrees and
promises that it will provide you with additional, sensitive and
Confidential Information (as hereinafter defined) and trade secrets,
all of which will be necessary for the performance of your duties as
a Consultant to the Company as provided herein. Accordingly, as a
promise ancillary to and in consideration for the Company’s promise
to provide you with sensitive and Confidential Information and trade
secrets, you agree that for a period of six months, commencing with
the Effective Date, you will not directly or indirectly serve as an
employee, director, consultant, or otherwise provide services,
advice or assistance to any person, association, or entity that is a
Competitor of the Company, whether in operations, research,
marketing, engineering, process, finance or administration. For the
purposes of this Agreement, the term “Competitor of the Company”
shall be construed broadly to include without limitation any
individual, entity, or enterprise that employs engineers,
geoscientists and field service personnel who apply knowledge and
technology to find, develop and produce oil and gas, as well as
those enterprises that provide products or services for the
drilling, formation evaluation, completion, or production of
hydrocarbons. You agree that this restriction in your ability to
represent a Competitor of the Company is necessary to protect the
Confidential Information the Company has already provided to you and
promises hereunder to provide to you in the future.
	 
	 	 	Because your agreement to refrain from competition for a period of six
months after the Effective Date is ancillary to the Company’s promise
to provide you with Confidential Information, that agreement will
survive even if you cease to provide consulting services at any time
during that six-month period. Should the

	 	 	 	 	 
	Initials: AJS MEW

	 	 	2	 

 

 

Exhibit 10.2

	 	 	Company offer to extend this
consulting services agreement for an additional six-month period under
the provisions of Section 2 of this Agreement, and should you agree to
such extension, the terms contained in Section 1B of this Agreement
will automatically be renewed through the extended period of the
Consulting Services agreement and for the additional six-month period
that follows the
expiration of the extended Consulting Services agreement. Should the
Consulting Services agreement not be extended beyond the initial
six-month period, the terms of the agreement contained in this Section
1B will expire six months following the Effective Date.
	 
	 	 	You recognize and agree that the restrictions stated herein are
reasonable in protecting the Confidential Information, proprietary
information, trade secrets, and technology of the Company. Although
the Company has attempted to place no more than reasonable limitations
on your subsequent employment opportunities consistent with the
Company’s interest in protecting its legitimate business interests,
you may, at some time in the future, feel that such limitations
constitute a serious impediment to your securing future employment.
In such case, you agree to make a written request to the Company for
waiver or reformation of rights under Section 1B of this letter before
accepting employment in conflict with this Section or any other
section of this letter, such request to include the name and address
of the proposed employer and the location, position, and duties of
proposed employment. A waiver or reformation, unqualified or upon
stated conditions, may be granted by Company in its discretion.
	 
	C.	 	No Solicitation. During the period commencing with your
Effective Date and ending six months from such date unless extended
as set forth below, you shall not, directly or indirectly,

	(a)	 	interfere with the relationship of the Company or any
Affiliate with, or endeavor to entice away from the Company or
any Affiliate, any individual or entity who was or is a material
customer or material supplier of, or who has maintained a
material business relationship with, the Company or its
Affiliates;
	 
	(b)	 	establish (or take preliminary steps to establish) a
business with, or cause or attempt to cause others to establish
(or take preliminary steps to establish) a business with, any
employee or agent of the Company or any of its Affiliates, if
such business is or will compete with the Company or any of its
Affiliates; or
	 
	(c)	 	employ, engage as a consultant or adviser, or solicit
the employment, engagement as a consultant or adviser, of any
employee or agent of the Company or any of its Affiliates, or
cause or attempt to cause any individual or entity to do any of
the foregoing.

	 	 	 	 	 
	Initials: AJS MEW

	 	 	3	 

 

 

Exhibit 10.2

	 	 	Should the Company offer to extend the Consulting Services agreement
for an additional six-month period under the provisions of Section 2
of this letter, and should you agree to such extension, the terms
contained in this Section 1C will automatically be renewed for an
additional 24-month period. Should the Consulting Services agreement
not be extended beyond the initial six-month
period, the terms contained in this Section 1B will expire six months
following the Effective Date.
	 
	D.	 	Confidential Information. “Confidential Information” means
sensitive or proprietary information that has been disclosed to
you, or is known by you, through your employment or as a
consequence of your employment with the Company, which is not
generally known as common existing public knowledge in the relevant
trade or industry. Confidential Information includes, but is not
limited to, the following: information regarding customers,
employees, contractors, and the industry not generally known to the
public; strategies, methods, books, records, and documents;
technical information concerning products, equipment, services, and
processes; procurement procedures, pricing, and pricing techniques;
information concerning past, current, and prospective customers,
investors, and business affiliates (such as contact name, service
provided, pricing, type and amount of services used, financial
data, and/or other such information); pricing strategies and price
curves; positions; plans or strategies for expansion or
acquisitions; budgets; research; financial and sales data; trading
methodologies and terms; communications information; evaluations,
opinions, and interpretations of information and data; marketing a
merchandising techniques; electronic databases; models;
specifications; computer programs; contracts; bids or proposals;
technologies and methods; training methods and processes;
organizational structure; personnel information; payments or rates
paid to consultants or other service providers; and other such
confidential or proprietary information.
	 
	 	 	You acknowledge that Company’s business is highly competitive, that
this Confidential Information constitutes a valuable, special, and
unique asset used by Company in its business, and that protection of
such Confidential Information against unauthorized disclosure and use
is of critical importance to Company. During the course of your
employment with the Company, you had access to and received
Confidential Information. You are obligated to keep confidential all
such Confidential Information for a period of not less than 12 months
following the Effective Date of this Agreement. Notwithstanding
anything to the contrary contained in this Agreement, the definition
of Confidential Information shall not include that sub-set of
confidential information denoted as “trade-secrets” as that term is
defined by law, for which the Company reserves the protections and
limitations provided at law.

	 	 	 	 	 
	Initials: AJS MEW

	 	 	4	 

 

 

Exhibit 10.2

	 	 	As an exception to this confidentiality obligation you may disclose
Confidential or proprietary information and trade secrets (i) in
connection with enforcing your rights under any Plan relevant to the
terms of this Agreement, or if compelled by law (and in either case,
you shall provide written notice to the Company prior to the
disclosure), or (ii) if the Company provides written consent prior to
the disclosure.

	2.	 	CONSULTING SERVICES:
	 
	 	 	For a period of six months effective January 1, 2004, the Company agrees
to retain you as a Consultant, and you hereby agree to serve as a
Consultant to the Company through June 30, 2004.
	 
	 	 	As a Consultant, you agree to provide assistance and advice to the
Company with respect to the Company’s worldwide operations, with which
you have experience by reason of your employment by the Company. In
connection with such assistance and advice you agree that, if so
requested by the Chief Executive Officer, you will undertake reasonable
travel upon reasonable notice at the expense of the Company in accordance
with the Company’s existing travel and reimbursement policies. You
acknowledge and agree that in the same manner that your employment
relationship prevented you from advising or otherwise working for a
Competitor of the Company, by your agreement to provide assistance and
advice to the Company during the period when you are serving as a
Consultant in accordance with the terms of Section 2 of this letter, you
are similarly restricted in your ability to advise or otherwise work for
a Competitor of the Company. You agree that this restriction in your
ability to represent a Competitor of the Company is necessary to protect
the Confidential Information the Company has provided to you in your
confidential relationship as an officer of the Company.
	 
	 	 	If the Company in its sole good-faith opinion determines that you have
failed to perform any service when requested or have engaged in any
activity contrary to the terms of this Agreement, no other monies or
benefits otherwise payable to you under the terms of this Agreement shall
be due or owed.
	 
	 	 	In return for your agreement to provide consulting services, the Company
agrees to pay you consulting fees in accordance with the following
schedule: $67,623.54 per month for the initial six-month period following
the Effective Date. The Company reserves the right to offer an extension
of this Consulting Services agreement. You have the right to accept or
decline such extension if offered. Should the Company exercise this
option, the fee paid to you for the additional six months of consulting
services will be at the rate of $52,030.00 per month. Should you accept
an offered extension, the provisions of Section 1B hereof, pertaining to
your agreements, shall continue in effect during the extension period and
for an additional six-month period immediately following the expiration
of the extended consulting period.

	 	 	 	 	 
	Initials: AJS MEW

	 	 	5	 

 

 

Exhibit 10.2

	3.	 	MISCELLANEOUS:

	A:	 	Exclusive Rights and Benefits – This Agreement will be
administered by the Company’s Senior Labor Attorney, who will also
resolve any issues regarding the interpretation, implementation, or
administration of the benefits described above. However, this
provision shall not be construed to limit your legal rights
if a disagreement exists to contest the decision of the Company’s
Senior Labor Attorney.
	 
	B:	 	Entire Agreement – This letter sets forth the entire
agreement between you and the Company with respect to each and every
issue addressed in this letter, and that entire, integrated
agreement fully supersedes any and all prior agreements or
understandings, oral or written, between you and the Company
pertaining to the subject matter of this letter.
	 
	C:	 	Exclusive Choice of Law and Arbitration Agreement – This
letter constitutes an agreement that has been executed and delivered
in the State of Texas, and the validity, interpretation, performance
and enforcement of that agreement shall be governed by the laws of
that State.

	 	 	In the event of any dispute or controversy arising under the agreement
set forth in this letter, or concerning the substance, interpretation,
performance, or enforcement of this Agreement, or in any way relating to
this Agreement (including issues relating to the formation of the
agreement and the validity of this arbitration clause), you agree to
resolve that dispute or controversy, fully and completely, through the
use of final, binding arbitration. You further agree to hold knowledge
of the existence of any dispute or controversy subject to this agreement
to arbitrate, completely confidential. You understand and agree that
this confidentiality obligation extends to information concerning the
fact of any request for arbitration, any ongoing arbitration, as well as
all matters discussed, discovered, or divulged, (whether voluntarily or
by compulsion) during the course of such arbitration proceeding. Any
arbitration conducted pursuant to this arbitration provision will be
conducted in accordance with the rules of the American Arbitration
Association in accordance with its rules governing employment disputes.
Any arbitration proceeding resulting hereunder will be conducted in
Houston, Texas before an arbitrator selected by you and the Company by
mutual agreement, or through the American Arbitration Association. This
arbitration agreement does not limit or affect the right of the Company
to seek an injunction to maintain the status quo in the event that the
Company believes that you have violated any provision of Sections 1 or 2
of this letter. Moreover, should it be determined by an arbiter that any
agreement or certification you have made under Section 1.A(a), (b), (c),
or (d) of this Agreement is unfulfilled or inaccurate you agree that the
appropriate measure of damages recoverable by the Company shall include,
but not be limited to, the total of

	 	 	 	 	 
	Initials: AJS MEW

	 	 	6	 

 

 

Exhibit 10.2

	 	 	all payments made under this
agreement, and such other damages as the arbitrator shall deem
appropriate.

	D:	 	Severability and Headings – The invalidity or
unenforceability of a term or provision of this Agreement shall not
affect the validity or enforceability of any other term or provision
of this Agreement, which shall remain in full force and
effect. Any titles or headings in this Agreement are for convenience
only and shall have no bearing on any interpretation of this
Agreement.
	 
	E:	 	Confidentiality of Agreement – You agree that, because the
agreement set forth in this letter is a special arrangement, you
will keep the terms of this letter completely confidential and will
not disclose, describe or characterize those terms to anyone,
including, but not limited to, current, former, or prospective
employee of the Company, or any representative of the news media,
except as specifically authorized by the Chairman and Chief
Executive Officer of Baker Hughes Incorporated. If any current,
former, or prospective employee of the Company, or member of the
news media, asks about the terms and conditions of your separation
and consulting arrangement with the Company, you will respond by
stating that you reached a “satisfactory” arrangement with the
Company. This confidentiality provision does not prevent you from
sharing information about this Agreement with your spouse or your
tax advisors provided that you inform them of the obligation to keep
the terms confidential.

Please initial each page and sign below.

EXECUTED in Houston, Texas
this 18th day of March, 2004.

BAKER HUGHES INCORPORATED

	 	 	 
	By:

	 	/s/Michael E. Wiley
	

	 	
 
	

	 	Michael E. Wiley
	

	 	Chairman, President, and Chief Executive Officer

EXECUTED in Houston, Texas
this 18th day of March, 2004.

	 	 	 
	By:

	 	/s/Andrew J. Szescila
	

	 	
 
	

	 	Andrew J. Szescila

	 	 	 	 	 
	Initials: AJS MEW

	 	 	7exv10w3

 

Exhibit 10.3

Form of Restricted Stock Award

     RESOLVED,
that the Company issue to        
   restricted shares of the Common Stock of the Company,
$1.00 par value per share (the “Restricted Shares”) under the
Company’s 2002 Director & Officer Long-Term Incentive, all of
which shares are to vest on        in the year    , subject
to continued employment with the Company;

     RESOLVED FURTHER, that if
        does not remain
employed by the Company other than by death or disability, the
Restricted Shares shall be forfeited to the Company to become
treasury shares of the Company;

     RESOLVED
FURTHER, that in the event       does not
remain employed by the Company due to his disability, all
Restricted Shares shall immediately vest;

     RESOLVED FURTHER, that upon the death of the employee
while in active service, all Restricted Shares shall
immediately vest with the estate of the deceased being the
beneficiary;

     RESOLVED FURTHER, that pending vesting of the Restricted
Shares,        shall be entitled to dividends paid with
respect to the Restricted Shares;

     RESOLVED FURTHER, that the Restricted Shares shall be
issued pursuant to the 2002 Director & Officer Long Term
Incentive Plan of the Company and are subject to and governed
by the additional terms and conditions of that Plan, including
(without limitation) the change of control provisions of
Section 16 of the Plan;

     RESOLVED FURTHER, that when the Restricted Shares are
issued and delivered to        , they shall be fully paid
and non-assessable and subject to the conditions described
above;

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]