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                                                                    Exhibit 10.5

                         EXECUTIVE EMPLOYMENT AGREEMENT

         This Executive Employment Agreement ("Agreement"), dated this 10th day
of April, 2001, is entered into by and between Dresser Italia S.r.L and any
other of its subsidiaries and affiliates as may employ Employee from time to
time, (collectively, "Employer") and Salvatore Ruggeri ("Employee").

                              W I T N E S S E T H:

         WHEREAS, Employee is currently employed by Employer; and

         WHEREAS, Halliburton Company recently sold approximately 95% of its
ownership interest in Dresser Inc. ("DI") and 100% of its interest in various DI
affiliated companies, including Employer, to affiliates of First Reserve
Corporation and Odyssey Investment Partners, LLC (collectively, the "Investor
Group"); and

         WHEREAS, Employer desires to continue the employment of Employee
pursuant to the terms and conditions set forth herein and Employee desires to
continue in the employment of Employer pursuant to the terms and conditions set
forth herein;

         NOW, THEREFORE, for and in consideration of the mutual promises,
covenants and obligations contained herein, Employer and Employee agree as
follows:

ARTICLE 1:  EMPLOYMENT AND DUTIES:

         1.1 Employer agrees to continue to employ Employee, and Employee agrees
to continue to be employed by Employer, beginning as of April 10, 2001 (the
"Effective Date") and continuing until the date of termination of Employee's
employment pursuant to the provisions of Article 3 (the "Term"), subject to the
terms and conditions of this Agreement.

         1.2 Beginning as of the Effective Date, Employee shall continue to be
employed as "dirigente" (i.e., "executive") with the job position of President,
Dresser Flow Control of Employer. Employee agrees to serve in the assigned
position or in such other executive capacities as may be requested from time to
time by Employer and to perform diligently and to the best of Employee's
abilities the duties and services pertaining to such positions as reasonably
determined by Employer, as well as such additional or different duties and
services appropriate to such positions which Employee from time to time may be
reasonably directed to perform by Employer.

         1.3 Employee shall at all times comply with and be subject to such
policies and procedures as Employer may establish from time to time, including,
without limitation, Employer's Company Code of Business Conduct (the "Code of
Business Conduct").

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         1.4 Employee shall, during the period of Employee's employment by
Employer, devote Employee's full business time, energy, and best efforts to the
business and affairs of Employer. Employee may not engage, directly or
indirectly, in any other business, investment, or activity that interferes with
Employee's performance of Employee's duties hereunder, is contrary to the
interest of Employer or any of its affiliated subsidiaries and divisions, (each
a "DI Entity", or collectively, the "DI Entities"), or requires any significant
portion of Employee's business time. The foregoing notwithstanding, the parties
recognize and agree that Employee may engage in passive personal investments and
other business activities which do not conflict with the business and affairs of
the DI Entities or interfere with Employee's performance of his or her duties
hereunder. Employee may not serve on the board of directors of any entity other
than a DI Entity during the Term without the approval thereof in accordance with
Employer's policies and procedures regarding such service. Employee shall be
permitted to retain any compensation received for approved service on any
unaffiliated corporation's board of directors.

         1.5 Employee acknowledges and agrees that Employee owes a fiduciary
duty of loyalty, fidelity, and allegiance to act at all times in the best
interests of the Employer and the other DI Entities and to do no act which
would, directly or indirectly, injure any such entity's business, interests, or
reputation. It is agreed that any direct or indirect interest in, connection
with, or benefit from any outside activities, particularly commercial
activities, which interest might in any way adversely affect Employer, or any DI
Entity, involves a possible conflict of interest. In keeping with Employee's
fiduciary duties to Employer, Employee agrees that Employee shall not knowingly
become involved in a conflict of interest with Employer or any DI Entity, or
upon discovery thereof, allow such a conflict to continue. Moreover, Employee
shall not engage in any activity that might involve a possible conflict of
interest without first obtaining approval in accordance with Employer's policies
and procedures.

         1.6 Nothing contained herein shall be construed to preclude the
transfer of Employee's employment to another DI Entity ("Subsequent Employer")
as of, or at any time after, the Effective Date and no such transfer shall be
deemed to be a termination of employment for purposes of Article 3 hereof;
provided, however, that, effective with such transfer, all of Employer's
obligations hereunder shall be assumed by and be binding upon, and all of
Employer's rights hereunder shall be assigned to, such Subsequent Employer and
the defined term "Employer" as used herein shall thereafter be deemed amended to
mean such Subsequent Employer. Except as otherwise provided above, all of the
terms and conditions of this Agreement, including without limitation, Employee's
rights and obligations, shall remain in full force and effect following such
transfer of employment.

ARTICLE 2:  COMPENSATION AND BENEFITS:

         2.1 Employee's base salary during the Term shall be equal to L.
555,543,452 gross per annum which shall be paid in accordance with the national
collective bargaining agreement for executives of industrial sector as applied
by the Employer (the

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"CBA"). Employee's base salary may be increased from time to time. Such
increased base salary shall become the minimum base salary under this Agreement
and may not be decreased thereafter without the written consent of Employee.

         2.2 During the Term, Employee shall participate in an annual incentive
plan, as approved by DI. Notwithstanding the aforementioned, it is specifically
understood and agreed that all determinations relating to Employee's
participation, including, without limitation, those relating to the performance
goals applicable to Employee and Employee's level of participation and payout
opportunity, shall be made in the sole discretion of the person or committee to
whom such authority has been granted.

         2.3 During the Term, Employer shall pay or reimburse Employee for all
actual, reasonable and customary expenses incurred by Employee in the course of
his or her employment; including, but not limited to, travel, entertainment,
subscriptions, and dues associated with Employee's membership in professional,
business and civic organizations; provided that such expenses are incurred and
accounted for in accordance with Employer's applicable policies and procedures.

         2.4 While employed by Employer, Employee shall be allowed to
participate, on the same basis generally as other executive employees of
Employer, in all general employee benefit plans and programs, including
improvements or modifications of the same, which on the Effective Date or
thereafter are made available by Employer to all or substantially all of
Employer's similarly situated executive employees. Such benefits, plans, and
programs may include, without limitation, medical, health, and dental care, life
insurance, disability protection, and qualified and non-qualified retirement
plans. Except as specifically provided herein, nothing in this Agreement is to
be construed or interpreted to increase or alter in any way the rights,
participation, coverage, or benefits under such benefit plans or programs than
provided to similarly situated executive employees pursuant to the terms and
conditions of such benefit plans and programs.

         2.5 Notwithstanding anything to the contrary in this Agreement, it is
specifically understood and agreed that Employer shall not be obligated to
institute, maintain, or refrain from changing, amending, or discontinuing any
incentive, compensation, employee benefit or stock or stock option program or
plan, so long as such actions are similarly applicable to covered employees
generally.

         2.6 Employer may withhold from any compensation, benefits, or amounts
payable under this Agreement all federal, state, city, or other taxes as may be
required pursuant to any law or governmental regulation or ruling.

ARTICLE 3:  TERMINATION OF EMPLOYMENT AND EFFECTS OF SUCH TERMINATION:

         3.1 Employee's employment with Employer shall be terminated (i) upon
the death of Employee, (ii) upon Employee's Retirement (as defined below), (iii)
upon

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Employee's Permanent Disability (as defined below), or (iv) at any time by
Employer upon notice to Employee in compliance with the applicable collective
bargaining agreement for executives of industrial sector as applied by the
Employer (the "CBA"), or (v) by Employee upon notice to Employer in compliance
with the CBA.

         3.2 If Employee's employment is terminated by reason of any of the
following circumstances (i), (ii), or (iii), Employee shall be entitled to
receive the benefits set forth only in Section 3.3 below:

         (i)      Retirement. "Retirement" shall mean either (a) Employee's
                  retirement at or after normal retirement age (either
                  voluntarily or pursuant to Employer's retirement policy) or
                  (b) the voluntary termination of Employee's employment by
                  Employee in accordance with Employer's early retirement
                  policy.

         (ii)     Employer Termination for Cause. Termination of Employee's
                  employment by Employer shall mean a termination of employment
                  at the election of the Employer when there is "Employer Cause"
                  triggering a termination without notice in accordance with the
                  Italian law and the CBA. By way of example, "Employer Cause"
                  shall mean any of the following: (a) Employee's gross
                  negligence or willful misconduct in the performance of the
                  duties and services required of Employee pursuant to this
                  Agreement, (b) Employee's final conviction of or plea of
                  guilty or nolo contendere to a felony or Employee engaging in
                  fraudulent or criminal activity relating to the scope of
                  Employee's employment (whether or not prosecuted), (c) a
                  material violation of Employer's Code of Business Conduct, (d)
                  Employee's material breach of any material provision of this
                  Agreement, or (e) any continuing or repeated failure to
                  perform the duties as requested in writing by the Board of
                  Directors of the Employer or DI, Employer's ultimate parent
                  company, after Employee has been afforded a reasonable
                  opportunity (not to exceed 30 days) to cure such breach.
                  Determination as to whether or not Employer Cause exists for
                  termination of Employee's employment will be made in
                  accordance with Italian Laws.

         (iii)    Resignation, Other Than For Cause. Termination of Employee's
                  employment by resignation other than for Employee Cause as
                  described in Section 3.4(i).

         3.3      If Employee's employment is terminated by reason of Section
                  3.2 (i), (ii), or (iii), Employee shall be entitled to each of
                  the following:

         (i)      The cash value of Employee's stock, options, or other equity
                  interests in DI for the following categories: (1) stock or
                  other equity interests which represent a direct investment in
                  DI by the Employee; (2) vested options which were previously
                  granted to Employee and based on Employee's

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                  continuity of employment; (3) any restricted stock previously
                  granted to Employee; and (4) any vested performance-based
                  options granted to the Employee. For purposes of
                  clarification, it is specifically understood and agreed that:
                  (a) all options previously granted under categories (2) and
                  (4) above that are unvested at the time of the Employee's
                  termination of employment shall be forfeited by the Employee;
                  and (b) all restricted stock previously granted to Employee
                  under category (3) above shall have all restrictions lapse on
                  the date of Employee's termination. The valuation, timing of
                  payment, and other related matters regarding the payment of
                  the aforesaid stock, other equity interests, or options shall
                  be as set forth in a separate agreement between Employee and
                  Employer (including any restrictions contained in financing
                  agreements of the Employer).

         (ii)     Employee shall be entitled to a pro rata base salary through
                  the date of such termination and shall be entitled to any
                  individual bonuses or individual incentive compensation not
                  yet paid, but payable under Employer's plans for years prior
                  to the year of Employee's termination of employment, as well
                  as the statutory termination payments as accrued until the
                  date of termination pursuant to the Italian Law and CBA.

         (iii)    Employee shall be entitled to any pro-rata individual bonuses
                  or individual incentive compensation accrued through the date
                  of termination, except for the case of termination of the
                  Employee's employment by the Employer under Section 3.2 (ii)
                  upon occurrence of which no pro-rata individual bonuses or
                  incentive shall be due to the Employee.

         (iv)     Except for (i) and (ii) above, it is specifically understood
                  that all future compensation to which Employee is entitled and
                  all future benefits for which Employee is eligible, shall
                  cease and terminate as of the date of termination.

         3.4 If Employee's employment is terminated by reason of (i), (ii),
(iii), or (iv) below, Employee shall be entitled to receive the benefits set
forth in Section 3.5 or Section 3.6, as applicable.

         (i)      Employee Termination For Cause. "Employee Termination For
                  Cause" shall mean a termination of employment at the election
                  of Employee when there is "Employee Cause" in compliance with
                  Italian law and CBA.

         (ii)     Employer Termination Without Cause. Termination of Employee's
                  employment by Employer shall mean a termination of employment
                  or at the sole election and option of the Employer for the
                  Employer's convenience and without Employer Cause.

         (iii)    Death.

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         (iv)     Permanent Disability. "Permanent Disability" shall mean
                  Employee's physical or mental incapacity to perform his or her
                  usual duties with such condition likely to remain continuously
                  and permanently as determined in compliance with Italian Laws.

         3.5 If Employee's employment is terminated by Employee under Section
3.4 (i) or by Employer under Section 3.4 (ii), Employee shall be entitled to
each of the following:

         (i)      The cash value of Employee's stock, options, or other equity
                  interests in DI for the following categories: (1) stock or
                  other equity interests which represent a direct investment in
                  DI by the Employee; (2) options, both vested and unvested,
                  which were previously granted to Employee and based on
                  Employee's continuity of employment; (3) any restricted stock
                  previously granted to Employee; and (4) any performance-based
                  options granted to the Employee, to the extent that said
                  options are vested at the time of termination of employment of
                  the Employee. For purposes of clarification, it is
                  specifically understood and agreed that: (a) all options
                  previously granted under category (2) above that are unvested
                  at the time of the Employee's termination of employment shall
                  be immediately vested as of said date; (b) all restricted
                  stock previously granted to Employee under category (3) above
                  shall have all restrictions lapse on the date of Employee's
                  termination; and (c) all options previously granted to
                  Employee under category (4) above that are unvested on the
                  date of Employee's termination of employment, shall be
                  forfeited by the Employee. The valuation, timing of payment,
                  and other related matters regarding the payment of the
                  aforesaid stock, other equity interests, or options shall be
                  as set forth in a separate agreement between Employee and
                  Employer (including any restrictions contained in financing
                  agreements of the Employer).

         (ii)     All applicable statutory payments accrued upon termination,
                  and other notice and severance benefits to which Employee is
                  entitled to under Italian law and CBA. These benefits exceed
                  the severance benefits for similarly situated Dresser
                  Executives. Therefore, Dresser acknowledges the application of
                  Italian law and CBA and the statutory payments provided for
                  therein, and does not provide for any additional severance or
                  termination payments under this Agreement, except as provided
                  in (i) above and (iii) below.

         (iii)    Employer shall maintain Employee's medical, dental and life
                  insurance benefits for a period of eighteen (18) months from
                  the date of Employee's termination on substantially the same
                  basis as would have otherwise been provided had Employee not
                  been terminated, to the extent that such benefits are
                  available under Employer's insurance and Employee had such

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                  coverage immediately prior to termination, such continuation
                  of benefits for Employee shall also cover Employee's
                  dependents.

         3.6 If Employee's employment is terminated by reason of Section 3.4
(iii) or (iv), Employee's estate, in the case of death, or Employee or his legal
guardian, in the case of Permanent Disability, shall be entitled to payment of
all amounts determined under Section 3.5.

         3.7 The benefits paid to Employee pursuant to Section 3.5 and Section
5.1 shall be in consideration of Employee's continuing obligations hereunder
after such termination, including, without limitation, Employee's obligations
under Article 4 and Article 5. As a condition to the receipt of such benefits,
Employer, in its sole discretion, may require Employee to first execute a
release, in the form established by Employer, releasing Employer and all other
DI Entities, and their officers, directors, employees, and agents, from any and
all claims and from any and all causes of action of any kind or character,
including, but not limited to, all claims and causes of action arising out of
Employee's employment with Employer and any other DI Entities or the termination
of such employment. The performance of Employer's obligations under Section 3.3
or Section 3.5 and the receipt of the benefits provided thereunder by Employee
shall constitute full settlement of all such claims and causes of action.
Employee shall not be under any duty or obligation to seek or accept other
employment following a termination of employment pursuant to which a severance
benefit payment under Section 3.3 or Section 3.5 is owing and the amounts due
Employee pursuant to Section 3.3 or Section 3.5 shall not be reduced or
suspended if Employee accepts subsequent employment or earns any amounts as a
self-employed individual. Employee's rights under Section 3.3 or Section 3.5 are
Employee's sole and exclusive rights against the Employer, or any affiliate of
Employer, and the Employer's sole and exclusive liability to Employee under this
Agreement, whether such claim is based in contract, tort or otherwise, for the
termination of his or her employment relationship with Employer. Nothing
contained in this Article 3 shall be construed to be a waiver by Employee of any
benefits accrued for or due Employee under any employee benefit plan maintained
by Employer except that Employee shall not be entitled to any severance benefits
pursuant to any severance plan or program of the Employer.

         3.8 Termination of the employment relationship does not terminate those
obligations imposed by this Agreement, which are continuing obligations,
including, without limitation, Employee's obligations under Article 4 and
Article 5.

         3.9 The payment of any monies to Employee under this Agreement after
the date of termination of employment do not constitute an offer or a
continuation of employment of the Employee. In no event, shall Employee
represent or hold himself out to be an employee of Employer after the date of
termination of employment. Except where Employer is lawfully required to
withhold any federal, state, or local taxes, Employee shall be responsible for
any and all federal, state, or local taxes that arise out of any payments to
Employee hereunder.

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         3.10 During any period during which any monies are being paid to
Employee under this Agreement after the date of termination, Employee shall
provide to Employer reasonable levels of assistance to Employer in answering
questions concerning the business of Employer, transition of responsibility, or
litigation, provided that all out of pocket expenses of Employee reasonably
incurred in connection with such assistance is fully and promptly reimbursed and
that any such assistance after the Non-Compete Period (as defined below) shall
not interfere or conflict with the obligations which Employee may owe to any
other employer.

ARTICLE 4:  OWNERSHIP AND PROTECTION OF INTELLECTUAL PROPERTY AND CONFIDENTIAL
            INFORMATION:

         4.1 All information, ideas, concepts, improvements, discoveries, and
inventions, whether patentable or not, which are conceived, made, developed or
acquired by Employee, individually or in conjunction with others, during
Employee's employment by Employer or any of the DI Entities (whether during
business hours or otherwise and whether on Employer's premises or otherwise)
which relate to the business, products or services of Employer or the DI
Entities (including, without limitation, all such information relating to
corporate opportunities, research, financial and sales data, pricing and trading
terms, evaluations, opinions, interpretations, acquisition prospects, the
identity of customers or their requirements, the identity of key contacts within
the customer's organizations or within the organization of acquisition
prospects, or marketing and merchandising techniques, prospective names, and
marks), and all writings or materials of any type embodying any of such items,
shall be the sole and exclusive property of Employer or a DI Entity, as the case
may be, and shall be treated as "work for hire".

         4.2 Employee acknowledges that the businesses of Employer and the DI
Entities are highly competitive and that their strategies, methods, books,
records, and documents, their technical information concerning their products,
equipment, services, and processes, procurement procedures and pricing
techniques, the names of and other information (such as credit and financial
data) concerning their customers and business affiliates, all comprise
confidential business information and trade secrets which are valuable, special,
and unique assets which Employer or the DI Entities use in their business to
obtain a competitive advantage over their competitors. Employee further
acknowledges that protection of such confidential business information and trade
secrets against unauthorized disclosure and use is of critical importance to
Employer and the DI Entities in maintaining their competitive position. Employee
hereby agrees that Employee will not, at any time during or after his or her
employment by Employer, make any unauthorized disclosure of any confidential
business information or trade secrets of Employer or the DI Entities, or make
any use thereof, except in the carrying out of his or her employment
responsibilities hereunder. Confidential business information shall not include
information in the public domain (but only if the same becomes part of the
public domain through a means other than a disclosure prohibited hereunder). The
above notwithstanding, a disclosure shall not be unauthorized if (i) it is
required by law or by a court of competent jurisdiction or (ii) it is in
connection with any judicial, arbitration,

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dispute resolution or other legal proceeding in which Employee's legal rights
and obligations as an employee or under this Agreement are at issue; provided,
however, that Employee shall, to the extent practicable and lawful in any such
events, give prior notice to Employer of his or her intent to disclose any such
confidential business information in such context so as to allow Employer or a
DI Entity an opportunity (which Employee will not oppose) to obtain such
protective orders or similar relief with respect thereto as may be deemed
appropriate.

         4.3 All written materials, records, and other documents made by, or
coming into the possession of, Employee during the period of Employee's
employment by Employer which contain or disclose confidential business
information or trade secrets of Employer or the DI Entities shall be and remain
the property of Employer, or the DI Entities, as the case may be. Upon
termination of Employee's employment by Employer, for any reason, Employee
promptly shall deliver the same, and all copies thereof, to Employer.

ARTICLE 5:  COVENANT NOT TO COMPETE:

5.1 The Employer reserves the option to provide consideration for and enforce a
Covenant Not to Compete, and the other conditions set forth in this Article 5,
prior to or upon termination of the employment. Regardless of whether this
option is exercised, the Employer shall pay the Employee (upon termination of
employment) a lump-sum payment equal to 2 gross months base salary to establish
this option. If Employer exercises this option prior to or upon Employee's
employment termination, (as additional consideration for the non-compete
obligation assumed herein), Employer agrees to pay an amount equal to one year
of Employee's gross base salary, and the individual bonus or incentive
compensation calculated at 33 % of the annual gross base salary, for a period of
1 year (the "Consideration"). The Consideration shall be based upon Employee's
base salary amount prior to termination. As to the base salary amount, the
payment shall be made in 12 equal monthly installments over the one year period;
as to the individual bonus or incentive, the payment shall be made at the time
such a payment is made to similarly employees.

If Employee's employment is terminated for Cause or Resignation, the
Consideration shall be reduced to 40% of the Employee's annual gross base
salary, excluding any individual bonus and incentive compensation. During the
Term of Employment and for a period of one (1) year thereafter (the "Non-Compete
Period"), the Employee will not, in association with or as an officer,
principal, member, advisor, agent, partner, director, material stockholder,
employee or consultant of any corporation (or sub-unit, in the case of a
diversified business) or other enterprise, entity or association, work on the
acquisition or development of, or engage in any line of business, property or
project in which Employee (i) is involved in or responsible for on the date of
such termination, or (ii) has worked with or evaluated in the last year and
which were still being pursued or evaluated by Employer within one month of the
time of such termination. Such restriction shall cover Employee's activities in
the following territories: Italy, France, United Kingdom, Texas, California,
Louisiana, New York State.

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         5.2 During the Term of Employment and the Non-Compete Period, Employee
will not solicit or induce any person who is or was employed by any of the DI
Entities at any time during such term or period, (A) to interfere with the
activities or businesses of any Company or (B) to discontinue his or her
employment with any of the DI Entities, or employ any such person in a business
or enterprise which competes with any of the DI Entities.

         5.3 During the Term of Employment or the Non-Compete Period, Employee
will not, directly or indirectly, influence or attempt to influence any
customers, distributors or suppliers of any of the DI Entities to divert their
business to any competitor of the Company.

         5.4 In the event that Employee breaches any of the terms of this
Article 5 during the Non-Compete Period, then Employer shall be entitled to
immediately cease making further payments to Employee and, in addition, shall be
entitled to a penalty equal to 3 times the Consideration, without prejudice to
seek further damages and such other relief, (including an injunction against
Employee) to which it is entitled under the law. Employee agrees that any
payment under this Article constitutes full and adequate consideration to the
Employee's obligations undertaken herein.

         5.5 Employee understands that the provisions of Section 5.1 hereof may
limit his ability to earn a livelihood in a business similar to the business in
which he is involved, but as an executive officer of Employer he nevertheless
agrees and hereby acknowledges that (i) such provisions do not impose a greater
restraint than is necessary to protect the goodwill or other business interests
of Employer and any of the DI Entities; (ii) such provisions contain reasonable
limitations as to time, scope of activity, and geographical area to be
restrained; (iii) the geographical area is reasonable in consideration of the
job position of Division President worldwide of the Employee and of the
multinational character of the Employer carrying out operations worldwide, and
(iv) the consideration provided hereunder, including without limitation, any
amounts or benefits provided under Article 3 hereof, is sufficient to compensate
Employee for the restrictions contained in Section 5.1 hereof. In consideration
of the foregoing and in light of Employee's education, skills and abilities,
Employee agrees that he will not assert that, and it should not be considered
that, any provisions of Section 5.1 otherwise are void, voidable or
unenforceable or should be voided or held unenforceable.

         5.6 Employee acknowledges and agrees that his duties with Employer are
of an executive nature and that he is a member of Employer's management group.
Employee agrees that the remedy at law for any breach by him of any of the
covenants and agreements set forth in this Article 5 will be inadequate and that
in the event of any such breach, Employer may, in addition to the other remedies
which may be available to it at law, obtain injunctive relief prohibiting
Employee (together with all those persons associated with him) from the breach
of such covenants and agreements.

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         5.7 Each of the covenants of this Article 5 are given by Employee as
part of the consideration for this Agreement and as an inducement to Employer to
enter into this Agreement and accept the obligations hereunder and is a material
inducement to the Investor Group to purchase Employer.

ARTICLE 6:  MISCELLANEOUS:

         6.1 For purposes of this Agreement, the terms "affiliate" or
"affiliated" means an entity or entities in which Employer has a 20% or more
direct or indirect equity interest or entity or entities that have a 20% or more
direct or indirect equity interest in Employer.

         6.2 For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been duly given when received by or tendered to Employee, Employer, as
applicable, by pre-paid courier or by United States registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

         If to Employer:   Dresser Italia S.r.L., Via Italo Betto 11, 27058,
         Voghera, Pavia, with copy to:  Dresser Inc., 2601 Beltline Road,
         Carrollton, Texas 75006, (or DI's current headquarters address) to the
         attention of the Vice-President & General Counsel.

         If to Employee:   To his or her last known personal residence

         6.3 No failure by either party hereto at any time to give notice of any
breach by the other party of, or to require compliance with, any condition or
provision of this Agreement shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.

         6.4 It is a desire and intent of the parties that the terms,
provisions, covenants, and remedies contained in this Agreement shall be
enforceable to the fullest extent permitted by law. If any such term, provision,
covenant, or remedy of this Agreement or the application thereof to any person,
association, or entity or circumstances shall, to any extent, be construed to be
invalid or unenforceable in whole or in part, then such term, provision,
covenant, or remedy shall be construed in a manner so as to permit its
enforceability under the applicable law to the fullest extent permitted by law.
In any case, the remaining provisions of this Agreement or the application
thereof to any person, association, or entity or circumstances other than those
to which they have been held invalid or unenforceable, shall remain in full
force and effect.

         6.5 This Agreement shall be governed by and construed and enforced, in
all respects in accordance with the laws of Italy and CBA. The parties agree
that any disputes concerning this Agreement shall be submitted to the
jurisdiction of Italian courts.

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         6.6 This Agreement shall be binding upon and inure to the benefit of
Employer, its successors in interest, or any other person, association, or
entity which may hereafter acquire or succeed to all or substantially all of the
business assets of Employer by any means, whether indirectly or directly, and
whether by purchase, merger, consolidation, or otherwise. Employee's rights and
obligations under this Agreement are personal and such rights, benefits, and
obligations of Employee shall not be voluntarily or involuntarily assigned,
alienated, or transferred, whether by operation of law or otherwise, without the
prior written consent of Employer, other than in the case of death or permanent
disability of Employee.

         6.7 This Agreement replaces and merges any previous agreements, and
discussions pertaining to the subject matter covered herein. This Agreement
constitutes the entire agreement of the parties with regard to the terms of
Employee's employment, termination of employment and severance benefits, and
contains all of the covenants, promises, representations, warranties, and
agreements between the parties with respect to such matters. Each party to this
Agreement acknowledges that no representation, inducement, promise, or
agreement, oral or written, has been made by either party with respect to the
foregoing matters which is not embodied herein, and that no agreement,
statement, or promise relating to the employment of Employee by Employer that is
not contained in this Agreement shall be valid or binding. Any modification of
this Agreement will be effective only if it is in writing and signed by each
party whose rights hereunder are affected thereby.

         6.8 The Investor Group shall be a third party beneficiary of this
Agreement and no change in this Agreement may be made prior to the Effective
Date without the written consent of First Reserve Corporation.

         IN WITNESS WHEREOF, Employer and Employee have duly executed this
Agreement in multiple originals to be effective on the Effective Date.

                                    DRESSER ITALIA S.r.L.

                                    By: /s/ PATRICK M. MURRAY

                                    Name:  Patrick M. Murray
                                    Title: President and Chief Executive Officer

                                    EMPLOYEE

                                    /s/ SALVATORE RUGGERI
                                    ---------------------------------------
                                    Name:  Salvatore Ruggeri

                                       12<PAGE>
                                                                    Exhibit 10.6

Life insurance is an important consideration for anyone - but especially for
executives who may have more extensive financial and family obligations.

For certain executives, Dresser provides Basic Life Insurance through the
Executive Life Insurance Plan. This coverage replaces the Basic Life Insurance
benefit available under the standard Group Insurance Plan, and provides an
important benefit - both as an active employee and as a retiree.

You may continue to purchase Optional Life Insurance through the standard Group
Insurance Plan.

                                       1
<PAGE>

WHAT THE PLAN PAYS

The Plan will pay a benefit if you die from any cause. Coverage amounts will
vary while you are actively employed by Dresser or after you retire.

 ACTIVE EMPLOYMENT       RETIREMENT
 ----------------------- --------------------------
 2x Annual Base          One-half of the
 Pay plus 2x Earned      coverage in effect
 Annual Incentive        immediately before your
 Compensation            retirement date
 ----------------------- --------------------------

Your coverage will increase as your pay increases - but it will not decrease if
your pay decreases.

WHO IS ELIGIBLE

Only certain executives as approved by the Benefits Committee are eligible to
participate in this plan.

HOW TO ENROLL

You have to enroll in the Plan - even though it provides an automatic benefit
and the Company pays its premium cost. You only have to enroll one time.

Follow these steps to enroll:

      1.    Complete, sign and return the Enrollment Questionnaire to Hartford,
            the insurance carrier for the Plan.

      2.    Receive, sign and return the official, completed Enrollment Form for
            Life Insurance from Hartford to confirm the information you
            provided.

      3.    Answer any additional questions about your medical history.

      4.    Sign and return the enclosed Executive Life Insurance Agreement to
            the Vice President, Human Resources.

      5.    If you want to select a trust as your beneficiary, you must request
            an additionally agreement form from the Vice President, Human
            Resources.

         DEFINITIONS

         BASE PAY: The annual base rate of pay in effect as of January 1.

         EARNED ANNUAL INCENTIVE COMPENSATION: The annual incentive earned in
         the prior fiscal year before any adjustments for the bonus reserve.

WHO PAYS FOR THE PLAN

Dresser pays the entire cost of the annual premium for coverage.

HOW YOU ARE TAXED

You have to pay income tax on the value of any life insurance coverage as
required by IRS rules. This taxable value is called imputed income. It will be
included in your annual W-2 form from the Company. If you are subject to
taxation outside the U.S., special rules may apply.

                                       2
<PAGE>
WHO COLLECT BENEFITS

When you enroll, you will name a beneficiary for your coverage. A beneficiary is
a person, persons, or a trust, who you select to receive your benefits from the
Plan. You may change your beneficiary at any time by notifying the Vice
President, Human Resources in writing.

Federal or state law may affect the benefit payment if you are married and you
name someone other than your spouse as your beneficiary.

If you do not have a named beneficiary when you die, or if your beneficiary
cannot by located, the Plan will pay a lump sum benefit to (in order):

      o     Your estate

      o     Your spouse

      o     Your children (equally)

      o     Your parents (equally), or

      o     Your brothers and sisters (equally).

WHEN THE PLAN PAYS BENEFITS

If you die, the Plan will pay the full amount of your coverage. There are no
exclusions. Your death may be from any cause.

HOW TO COLLECT BENEFITS

Your beneficiary must submit proof of your death along with the appropriate
claim form. All benefits will be paid in a lump sum.

WHEN COVERAGE ENDS

Your coverage ends if you leave the Company. You have the option to take the
policy with you, BUT YOU WILL BE RESPONSIBLE FOR THE ANNUAL PREMIUM COSTS. The
policy will not have any loan or cash value available to you.

Your coverage will end the earliest of:

      o     The date you are no longer eligible

      o     The last day of the calendar month in which your employment ends

      o     The date the policy is canceled, in whole or in part, or

      o     The date the Plan is terminated.

If you elect to take the policy with you upon separation, you must complete an
application before you leave the Company. You will not be required to provide
Evident of Insurability. You will be told the cost of the policy when you apply.
You must pay the first premium before coverage will take effect.

                                       3
<PAGE>

WHAT IF?

<TABLE>
<CAPTION>
IF...                                  THEN...
--------------------------------------------------------------------------------
<S>                                    <C>
You become disabled.                   Your full coverage continues until the
                                       end of your disability or retirement, or
                                       age 65, whichever is earlier.
--------------------------------------------------------------------------------
You retire                             Your coverage will be one-half of the
                                       coverage in effect immediately before
                                       your retirement date. This coverage
                                       continues until you die. Dresser will
                                       continue to pay your premiums. You must
                                       continue to pay income tax on the value
                                       of your coverage.
--------------------------------------------------------------------------------
You leave the Company or are no        You may take your full coverage with you.
longer eligible.                       Hartford, the insurance carrier, will
                                       provide the steps to follow.  You must
                                       pay the premiums to continue coverage.
                                       Dresser will collect any cash value that
                                       has been accumulated in the policy.
--------------------------------------------------------------------------------
The Company changes control.           If you continue to work for the Company:
                                       Your premiums will be paid for at least
                                       five years. The Company may then
                                       terminate the Plan. At that time, you may
                                       take the coverage with you. [WHAT HAPPENS
                                       TO THE CASH VALUE?] Hartford, the
                                       insurance carrier, will provide the steps
                                       to follow and you must pay the premiums
                                       to continue coverage.

                                       If you leave the company or are retired:
                                       Your coverage will continue - at a level
                                       of one-half of your coverage in effect
                                       immediately before your termination or
                                       retirement date
--------------------------------------------------------------------------------
</TABLE>

IMPORTANT TELEPHONE NUMBERS AND ADDRESSES:

     Vice President, Human Resources
     Dresser, Inc.
     15455 Dallas Parkway, Suite 1100
     Addison, Texas 75001
     (972) 361-9810

     International Corporate Marking Group
     An affiliate of ITT Hartford Insurance Group
     100 Campus Drive, Suite 250
     Florham Park, NJ 07932
     (800) 854-3384

                                       4

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