Document:

exv10w9

Exhibit 10.9

FORM OF CONSULTING AGREEMENT

     This Consulting Agreement (this “Agreement”), is entered into as of the Effective Date (as
defined herein), by and between Exterran Holdings, Inc., a Delaware corporation (“Company”), and
Stephen A. Snider (“Consultant”).

W
I T N E S S E T H:

     A. Consultant currently serves as an executive officer of the Company and a member of its
board of directors;

     B. Consultant plans to retire as an executive officer of Company by June 30, 2009 (the date on
which such retirement occurs is referred to herein as the “Effective Date”), and such retirement
constitutes a “separation of service” for purposes of Section 409A of the Internal Revenue Code
(“Section 409A”); and

     C. Consultant desires to provide consulting services to Company under the terms and conditions
described herein, and Company desires such services.

AGREEMENTS

     In consideration of the mutual promises, terms, covenants and conditions set forth herein and
the performance of each, the parties hereto hereby agree as follows:

     1. Consulting Services. During the Term (as defined herein), Consultant will provide
(a) such services of a consulting, advisory or similar nature as the Chief Executive Officer of the
Company may reasonably request with respect to the business and affairs of Company related to
Company’s current business and internal and external growth opportunities and (b) such other
services to which the Chief Executive Officer of Company and Consultant mutually agree from time to
time. In each case, Consultant will be available for an average of 16 hours per month to Company
for consultation at such times and locations as Company reasonably may request and that are
agreeable to Consultant; provided, however, that in no event shall Consultant provide services
equal to or in excess of 20% of the average level of services he provided during the 36 month
period immediately preceding the Effective Date. Without the prior written consent of Company,
Consultant will not have authority to act or make decisions for, give instructions or orders on
behalf of or make commitments on behalf of Company. The parties agree that Consultant is and shall
be treated for all purposes as an independent contractor to Company and no employment, partnership,
agency, joint venture or other relationship shall be created or construed herefrom.

     2. Compensation. For the services rendered by Consultant, Company shall compensate
Consultant with payment of EIGHT THOUSAND THREE HUNDRED THIRTY-THREE DOLLARS AND THIRTY-THREE CENTS
($8,333.33) per month of the Term, to be paid in monthly payments, contingent upon Consultant’s
satisfaction of all the terms of this Agreement. In addition, Company shall reimburse Consultant
for all reasonable out-of-pocket
expenses actually paid by Consultant in providing the consulting services requested by Company

 

 

in Section 1. Company shall reimburse such expenses within 60 days of receipt of
reasonable documentation of such expenses; provided, however, that in no event shall such amount be
paid or reimbursed later than the last day of the calendar year following the calendar year in
which Consultant incurred such reimbursable expense. Company shall provide Consultant all
computer, communications and electronic equipment and administrative services reasonably necessary
for Consultant to provide the services requested by Company in Section 1.

     3. Term; Termination; Rights on Termination. The term of this Agreement shall begin
on the Effective Date and continue until the first anniversary of the Effective Date (the “Term”);
provided, however, that in the event of Consultant’s death during the Term, this Agreement shall
terminate on the date of such event. Upon termination of this Agreement, all rights and
obligations of Company and Consultant under this Agreement shall cease, except that Sections
4 and 6 hereof shall survive such termination in accordance with their terms.

     4. Independent Contractor. Consultant expressly acknowledges that he will be acting
as an independent contractor and not as an employee, for all purposes. Accordingly, Consultant
agrees not to hold himself out to the public as an employee of Company. As an independent
contractor, Consultant shall be responsible for the payment of self-employment/social security
taxes and all other federal, state and local taxes. Subject to Company’s obligation to pay
reasonable out-of-pocket expenses actually paid by Consultant as provided in Section 2,
Consultant shall also be solely responsible for any and all costs associated in performing the
services to be rendered under this Agreement.

     5. Successors.

          (a) This Agreement is personal to Consultant and shall not be assignable by Consultant
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by Consultant’s legal representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon Company and its
successors and assigns.

          (c) Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of Company to
assume expressly and agree to perform this Agreement in the same manner and to the same extent that
Company would be required to perform it if no such succession had taken place.

     6. Miscellaneous.

          (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. CONSULTANT HEREBY AGREES THAT VENUE
FOR ANY DISPUTE RELATED TO THIS AGREEMENT SHALL BE FILED AND HEARD BY THE COURTS IN AND FOR HARRIS
COUNTY, TEXAS, OR THE U.S. DISTRICT COURTS FOR THE SOUTHERN DISTRICT OF TEXAS, HOUSTON DIVISION.

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          (b) The captions of this Agreement are not part of the provisions hereof and shall have no
force or effect. This Agreement may not be amended or modified otherwise than by a written
agreement executed by the parties hereto or their respective successors and legal representatives
that specifically refers to this Agreement.

          (c) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows: if to Consultant, Stephen A.
Snider,                                                            
                                                                        
                                                                           
                      ; and if to Company, Exterran Holdings,
Inc., 16666 Northchase Drive, Houston, Texas 77060, Attention: General Counsel, or to such other
address as either party shall have furnished to the other in writing in accordance herewith.
Notices and communications shall be effective when actually received by the addressee.

          (d) If any portion of this Agreement is held invalid or inoperative, the other portions of
this Agreement shall be deemed valid and operative and, so far as is reasonable and possible,
effect shall be given to the intent manifested by the portion held invalid or inoperative.

          (e) Company may withhold from any amounts payable under this Agreement such Federal, state,
local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

          (f) This Agreement is intended to comply with Section 409A, and any ambiguous provision will
be construed in a manner that is compliant with or exempt from the application of Section 409A.

     IN WITNESS WHEREOF, Consultant and Company have executed this Agreement:

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CONSULTANT:	 	 
	 
	 	 	 	 	 	 
	            
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Stephen A. Snider          	 	 
	 
	 	 	 	 	 	 
	 	 	EXTERRAN HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	            	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	            
 

	 	 
	 

	 	Title:
	 	            	 	 
	 

	 	 	 	 

	 	 

-3-exv10w10

Exhibit 10.10

AMENDMENT NO. 2

TO

AMENDED AND RESTATED EXTERRAN HOLDINGS, INC.

2007 STOCK INCENTIVE PLAN

Effective April 30, 2009

          WHEREAS, Exterran Holdings, Inc., a Delaware corporation (the “Company”), has established and
maintains the Amended and Restated Exterran Holdings, Inc. 2007 Stock Incentive Plan, as amended by
Amendment No. 1 thereto (as so amended, the “Plan”); and

          WHEREAS, pursuant to Article XIII of the Plan, the Company has the right to amend the Plan at
any time by action of the Board.

          NOW,
THEREFORE, the Board hereby amends the Plan, effective as of the date
set forth above, as
follows:

     1. The first sentence in paragraph (d) in Article IV of the Plan is hereby amended and
restated in its entirety to read as follows:

“Subject to Paragraph IV(a) above, the Committee may delegate to the Board or to one
or more other committees of the Board the authority to grant Awards to Employees who
are not subject to Section 16(b) of the 1934 Act.”

     2. The Plan shall remain in full force and effect and, as amended by this Amendment, is hereby
ratified and affirmed in all respects.exv10w3

Exhibit 10.3

BAKER HUGHES INCORPORATED

EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated

Effective as of February 26, 2009)

 

 

BAKER HUGHES INCORPORATED

EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated

Effective as of February 26, 2009)

WITNESSETH:

     WHEREAS, the Baker Hughes Incorporated 1987 Employee Stock Purchase Plan was adopted for the
benefit of the eligible employees of Baker Hughes Incorporated; and

     WHEREAS, the Plan has, from time to time, been amended and restated; and

     WHEREAS, the Company desires to restate the Plan and to amend the Plan to increase by eight
million (8,000,000) shares the number of shares available under the Plan from 14,500,000 to
22,500,000, and to make revisions to other provisions of the Plan;

     NOW THEREFORE, the Plan is hereby amended and restated in its entirety as follows with no
interruption in time, effective as of February 26, 2009, except as otherwise indicated herein:

 

 

BAKER HUGHES INCORPORATED

EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated

Effective as of February 26, 2009)

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	 	 	 
	 	 
	ARTICLE 1 PURPOSE	 	1
	1.1	 	Purpose 
	 	1
	 	 	 
	 	 
	ARTICLE 2 DEFINITIONS	 	1
	2.1	 	Definitions 
	 	1
	2.2	 	Number and Gender 
	 	3
	2.3	 	Headings 
	 	4
	 	 	 
	 	 
	ARTICLE 3 ELIGIBILITY AND PARTICIPATION	 	4
	3.1	 	Eligibility 
	 	4
	3.2	 	Participation 
	 	4
	3.3	 	Termination of Participation 
	 	5
	 	 	 
	 	 
	ARTICLE 4 GRANT OF OPTIONS AND EXERCISE OF OPTIONS	 	7
	4.1	 	Grant of Options 
	 	7
	4.2	 	Limitations on the Grant of Options 
	 	7
	4.3	 	Insufficient Number of Shares 
	 	7
	4.4	 	Restriction Upon Assignment 
	 	7
	4.5	 	Exercise of Options; ESPP Accounts 
	 	8
	4.6	 	Withholding Obligations 
	 	8
	4.7	 	Notice of Disposition 
	 	8
	4.8	 	Dispositions in Compliance with Securities Laws 
	 	8
	 	 	 
	 	 
	ARTICLE 5 PROVISIONS RELATED TO COMMON STOCK	 	8
	5.1	 	Shares Reserved 
	 	8
	5.2	 	No Rights of Stockholder Until Exercise 
	 	9
	5.3	 	Registration of Shares of Common Stock 
	 	9
	5.4	 	Certificates for Shares 
	 	9
	5.5	 	Changes in Common Stock and Adjustments 
	 	10
	 	 	 
	 	 
	ARTICLE 6 ADMINISTRATION OF PLAN	 	10
	6.1	 	Plan Administrator 
	 	10
	6.2	 	Resignation and Removal 
	 	10
	6.3	 	Records and Procedures 
	 	10
	6.4	 	Self-Interest of Plan Administrator 
	 	10
	6.5	 	Compensation and Bonding 
	 	11
	6.6	 	Plan Administrator Powers and Duties 
	 	11

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	 	 	 	 	Page
	6.7	 	Reliance on Documents, Instruments, etc.
	 	11
	 	 	 
	 	 
	ARTICLE 7 EXTENSION OF PLAN TO EMPLOYERS	 	12
	7.1	 	Adoption by Employers 
	 	12
	7.2	 	Single Plan 
	 	12
	7.3	 	No Joint Venture Implied 
	 	12
	 	 	 
	 	 
	ARTICLE 8 MISCELLANEOUS	 	13
	8.1	 	Use of Funds; No Interest Paid 
	 	13
	8.2	 	Amendment to the Plan 
	 	13
	8.3	 	Plan Not an Employment Contract 
	 	13
	8.4	 	Beneficiary(ies) 
	 	13
	8.5	 	Severability 
	 	13
	8.6	 	Binding Effect 
	 	13
	8.7	 	Limitation on Liability 
	 	13
	8.8	 	Arbitration 
	 	14
	8.9	 	Governing Law 
	 	14

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BAKER HUGHES INCORPORATED

EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated

Effective as of February 26, 2009)

ARTICLE 1: PURPOSE

1.1 Purpose.

     (a) The purpose of the BAKER HUGHES INCORPORATED EMPLOYEE STOCK PURCHASE PLAN (the “Plan”) is
to encourage and enable Eligible Employees (defined below) to voluntarily acquire proprietary
interests in BAKER HUGHES INCORPORATED (the “Company”) through the ownership of the Company’s
Common Stock (defined below) at a favorable price and upon favorable terms and to furnish to the
Eligible Employees an incentive to advance the best interests of the Company for the mutual benefit
of the Eligible Employees, the Company and the Company’s stockholders. The Plan is intended to
qualify as an “employee stock purchase plan” under section 423 of the Code (defined below).
Accordingly, the provisions of the Plan shall be construed in a manner consistent with the
requirements of that Code section.

     (b) Subject to approval by the Company’s stockholders, the provisions of Section 5.1 shall
become effective as of February 26, 2009.

ARTICLE 2: DEFINITIONS

2.1 Definitions.

     “Affiliate” means (a) any entity which is a member of the same controlled group of
corporations within the meaning of section 414(b) of the Code, (b) a trade or business (whether or
not incorporated) which is under common control (within the meaning of section 414(c) of the Code),
or (c) any entity which is a member of the same affiliated service group (within the meaning of
section 414(m) of the Code), with the Company.

     “Beneficiary” or “Beneficiaries” shall be as determined pursuant to the provisions of Section
8.4.

     “Board” means the Board of Directors of the Company.

     “Code” means the Internal Revenue Code of 1986, as amended. References to sections of the
Code shall include the regulations issued thereunder.

     “Committee” means the Administrative Committee that may be appointed by the Compensation
Committee as a Plan Administrator.

     “Common Stock” means the $1 par value common stock of the Company.

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     “Company” means Baker Hughes Incorporated, a Delaware corporation.

     “Compensation Committee” means the Compensation Committee of the Board.

     “Date of Exercise” means, for each Option Period, the last day that the principal securities
exchange on which the Common Stock is listed is open for trading.

     "Date of Grant” means the date on which Options are granted, as such date is determined by the
Board or the Compensation Committee.

     “Eligible Compensation” means a Participant’s base salary or wages measured on an annual basis
(as defined in section 3401(a) of the Code for purposes of federal income tax withholding) from the
Company, modified by including any portion thereof that such Participant could have received in
cash in lieu of (a) any deferrals made by the Participant pursuant to the Baker Hughes Incorporated
Supplemental Retirement Plan or (b) elective contributions made on his behalf by the Company
pursuant to a qualified cash or deferred arrangement described in section 401(k) of the Code and
any elective contributions under a cafeteria plan described in section 125 of the Code, and
modified further by excluding any bonus, incentive compensation, commissions, expense
reimbursements or other expense allowances, fringe benefits (cash and noncash), moving expenses,
deferred compensation (other than elective contributions to the Company’s qualified cash or
deferred arrangement described in section 401(k) of the Code), welfare benefits as defined in the
Employee Retirement Income Security Act of 1974, as amended, overtime pay, special performance
compensation amounts and severance compensation.

     “Eligible Employee” means each Employee who is scheduled to work at least 20 hours per pay
period during the Option Period, and subject to the provisions of Section 3.2(f), is an Employee at
the beginning of the Option Period; provided, that the following Employees shall not be eligible to
participate in the Plan:

     (a) an Employee who is a citizen of a foreign country that prohibits foreign corporations from
granting stock options to any of its citizens; and

     (b) an Employee if such Employee, immediately after the Option is granted, owns stock (as
defined by sections 423(b)(3) and 424(d) of the Code) possessing 5 percent or more of the total
combined voting power or value of all classes of stock of the Company or of a subsidiary.

     “Employee” means each individual employed by an Employer.

     “Employer” means the Company and each entity that has adopted the Plan pursuant to the
provisions of Article 7.

     “ESPP Account” means the individual account established by the ESPP Administrator for each
Participant in the Plan.

     “ESPP Administrator” means the stock brokerage or other financial services firm

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designated or approved by the Plan Administrator to hold shares purchased under the Plan for the ESPP Accounts of
Participants.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor act.

     “Fair Market Value” means the per share price of the last sale of the Common Stock on the
“composite tape” on the trading day prior to the date on which the value is being determined. The
“composite tape” is the composite transactions in the Common Stock as reported by The Wall
Street Journal.

     “Option” means an option to purchase shares of Common Stock under the terms and provisions of
the Plan.

     “Option Period” means the 12-month period commencing on January 1 of each calendar year,
unless the Board or the Compensation Committee changes the duration of the Option Period with
respect to future Options, and except as modified by Sections 3.3(c)(2) and 3.3(c)(4). An Option
Period may not exceed 27 months.

     “Option Price” means the price per share to be paid by each Participant on each exercise of
his Option and shall be a sum equal to 85% of the Fair Market Value of a share of Common Stock on
the Date of Exercise or on the Date of Grant, whichever amount is lesser, unless the Board or the
Compensation Committee changes the Option Price with respect to future Options. Prior to the
commencement of any future Option Period, the Board or the Compensation Committee may, in lieu of
the Option Price specified in the preceding sentence, establish an Option Price that is greater
than 85% of the Fair Market Value of a share of Common Stock on the Date of Exercise.

     “Participant” means each Eligible Employee who elects to participate in the Plan.

     “Plan” means the Baker Hughes Incorporated Employee Stock Purchase Plan, as amended from time
to time.

     “Plan Administrator” means the Company, acting through its delegates. Such delegates shall
include the Administrative Committee, the Investment Committee of the Company and any individual
Plan Administrator appointed by the Board with respect to the employee benefit plans of the Company
and its Affiliates, each of which shall have the duties and responsibilities assigned to it from
time to time by the Board. As used in the Plan, the term “Plan Administrator” shall refer to the
applicable delegate of the Company as determined pursuant to the actions of the Board.

     “Securities Act” means the Securities Act of 1933, as amended, or any successor statute.

2.2 Number and Gender. Wherever appropriate herein, words used in the singular shall be
considered to include the plural and words used in the plural shall be considered to include the
singular. The masculine gender, where appearing in the Plan, shall be deemed to include the
feminine gender.

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2.3 Headings. The headings of Articles and Sections herein are included solely for
convenience and if there is any conflict between such headings and the text of the Plan, the text
shall control.

ARTICLE 3: ELIGIBILITY AND PARTICIPATION

3.1 Eligibility. All Eligible Employees shall be eligible to participate in the Plan for
an Option Period, provided that the Eligible Employee’s employment with an Employer continues
uninterrupted throughout the Option Period. A transfer between or among Employers shall not be
treated as an interruption of the Eligible Employee’s employment.

3.2 Participation.

     (a) Election to Participate. An Eligible Employee shall become a Participant after satisfying
the eligibility requirements in Section 3.1 and delivering to the Plan Administrator during the
enrollment period established by the Plan Administrator an enrollment form that (1) indicates the
Eligible Employee’s election to participate in the Plan as of the next following Date of Grant; (2)
authorizes the payroll deduction and states the amount to be deducted regularly from the
Participant’s Eligible Compensation and to be accrued under the Plan for his benefit; and (3)
authorizes the purchase of the Common Stock at the end of the Option Period. The effective date of
a Participant’s participation shall be the Date of Grant following the Plan Administrator’s receipt
of the Participant’s authorization. The procedure established by the Plan Administrator for an
Eligible Employee to enroll in the Plan may be through any written form or any telephonic,
electronic mail, intranet, internet or any other electronic process established by the Plan
Administrator from time to time.

     (b) Continuing Election. A Participant’s election to participate in the Plan with respect to
an Option Period shall continue for each successive Option Period at the same payroll deduction
percentage as in effect at the termination of the prior Option Period unless the Participant amends
or cancels his participation pursuant to subsection 3.2(d).

     (c) Payroll Deductions. Each Participant will designate in his participation election the
stated amount to be deducted from his Eligible Compensation on each payday. A Participant may
elect to have deducted from 1% to 10% of his Eligible Compensation, or such other percentages as
the Committee may from time to time determine. A Participant’s percentage deduction election must
be in whole percentages, and a Participant’s payroll deductions for the entire Option Period are
based on his Eligible Compensation at the beginning of the Option Period. The stated amount may
not be less than a sum that will result in the payment into the Plan of at least $5.00 each payday.
The stated amount may not exceed either of (1) 10% of the amount of Eligible Compensation (or such
other maximum percentage as determined by the Committee), or (2) an amount which will result in
noncompliance with the $25,000 statutory limitation described in Section 4.2.

     Participant payroll deductions are maintained by the Company as an accrual for the benefit of
the Participant until the Date of Exercise.

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     (d) Changes in Payroll Deductions. By delivering to the Plan Administrator a new written
payroll deduction authorization form, a Participant may amend the stated amount of his payroll
deduction to reduce the rate of his payroll deductions at any time during an Option Period. A
Participant’s payroll deduction designation rate may not be increased during an Option Period. The
new payroll deduction rate will become effective for the next payroll period, provided that the
next payroll period commences more than 15 days after receipt of the new authorization form. Any
change to the rate of payroll deduction will continue for the remainder of the Option Period.
Changes in the rate of payroll deductions are limited to one change during any Option Period.

     (e) Leaves of Absence. During leaves of absence approved by the Plan Administrator and in
compliance with the requirements of Treasury Regulation § 1.421-1(h)(2), a Participant may continue
participation in the Plan at the stated amount in his payroll deduction election by making cash
payments to the Company on his normal paydays equal to any reduction in his payroll deductions
caused by his leave.

     (f) Re-admission to Participate after Termination of Participation. If a Participant’s
participation in the Plan is terminated due to his withdrawal from the Plan in accordance with the
provisions of Section 3.3(a), the Participant shall be eligible to participate again in the Plan
upon the expiration of the Option Period during which such Participant ceased participation and may
participate in any subsequent Option Period by making an election to participate in accordance with
the provisions of Section 3.2(a). If a Participant’s participation in the Plan is terminated due
to his termination of employment and he is subsequently re-employed by an Employer, he may
participate in the Plan upon his re-employment if he satisfies the eligibility requirements of
Section 3.1 and he elects to participate in the Plan in accordance with the provisions of Section
3.2(a).

3.3 Termination of Participation.

     (a) Withdrawal from Participation. A Participant may withdraw completely from participation
in the Plan at any time during an Option Period. To withdraw from the Plan, a Participant must
deliver to the Plan Administrator a notice of withdrawal in a form and manner authorized by the
Plan Administrator, and the notice of withdrawal must be delivered within the time period
established by the Plan Administrator. After the Plan Administrator’s receipt of the notice of
withdrawal, the Participant’s payroll deduction authorization and his interest in unexercised
options under the Plan will terminate and the Participant’s prior payroll deductions made under the
Plan will be refunded to the Participant.

     (b) Voluntary Termination of Participation. A Participant may voluntarily terminate his
participation in the Plan by lowering the rate of his payroll deductions to zero for the remainder
of the Option Period, in accordance with the provisions of Section 3.2(d). A Participant who has
decreased his rate of payroll deduction to zero will be deemed to continue as a Participant in the
Plan until he withdraws from the Plan in accordance with the provisions of subsection 3.3(a) or his
participation is terminated in accordance with the provisions of subsection 3.3(c). As long as the
Participant continues as a Participant in the Plan, the amount

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accrued for the Participant under the Plan will be applied to the purchase of Common Stock at
the end of the Option Period.

     (c) Involuntary Termination of Participation.

          (1) Termination of Employment Other than by Retirement, Death or Disposition of Assets, etc.
If the employment of a Participant with all Employers terminates other than by retirement, death or
as a result of a disposition of assets, a division or an entity or as a result of a plant closing,
or if he is no longer eligible to participate in the Plan, his participation in the Plan shall,
without any action on his part, automatically terminate as of the date of the termination of his
employment or the date of the termination of his eligibility. The Employer will refund to the
Participant the amount of the Participant’s prior payroll deductions made under the Plan, and his
interest in unexercised Options under the Plan shall terminate. A termination of employment does
not include a transfer of employment among Employers or a transfer of employment to a venture or
entity in which the Company or an Affiliate has an equity interest exceeding 50 percent.

          (2) Termination by Retirement. If a Participant is at least 55 years of age and has an
aggregate of at least ten (10) years of service with all Employers, he may retire under the Plan.
The Participant may, at his election by written notice to the Plan Administrator, either (A)
exercise his Option as of his termination date, in which event the Employer shall apply the amount
accrued under the Plan at that time to the purchase at the Option Price of shares of Common Stock,
including fractions, or (B) request payment of the Participant’s prior payroll deductions made
under the Plan at that time, in which event the Employer promptly shall make such payment, and
thereupon the Participant’s interest in unexercised Options under the Plan shall terminate. If the
Participant elects to exercise his Option, the date of his termination shall be deemed to be the
Date of Exercise for the purpose of computing the amount of the Option Price of the Common Stock.

          (3) Termination by Death. If a Participant’s employment is terminated by his death, any
accrual under the Plan for the purchase of shares of Common Stock and any shares of Common Stock in
the Participant’s name shall be distributed to the Participant’s Beneficiaries.

          (4) Termination as a Result of a Disposition of Assets, a Division or an Entity or a Plant
Closing. A Participant whose employment with his Employer is terminated as a result of a
disposition of assets, a division or an entity or as a result of a plant closing may, at his
election by written notice to the Plan Administrator, either (A) exercise his Option as of his
termination date, in which event the Employer shall apply the amount accrued under the Plan at that
time to the purchase at the Option Price of shares of Common Stock, including fractions, or (B)
request payment of the Participant’s prior payroll deductions made under the Plan at that time, in
which event the Employer promptly shall make such payment, and thereupon the Participant’s interest
in unexercised Options under the Plan shall terminate. If the Participant elects to exercise his
Option, the date of his termination shall be deemed to be the Date of Exercise for the purpose of
computing the amount of the Option Price of the Common Stock. As determined by the Plan
Administrator, a Participant shall be deemed to have terminated his employment with all Employers
(A) as a result of a disposition of assets, a division or an entity if
such employment is terminated coincident with and as a result of the disposition, by the

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Employer, the Company or their subsidiaries or Affiliates, of assets, a division or any other
business entity (regardless of form) in connection with a sale, exchange, merger or other business
transaction, or (B) as a result of a plant closing if such employment is terminated coincident with
and as a result of a significant manufacturing plant closing by the Employer, but not as a result
of mere district changes or layoffs.

ARTICLE 4: GRANT OF OPTIONS AND EXERCISE OF OPTIONS

4.1 Grant of Options. Following the effective date of the Plan and continuing for as long
as the Plan remains in force, Options will be offered under the Plan to all Participants to
purchase shares of Common Stock. Options shall be granted on the Date of Grant and shall be
exercisable on the Date of Exercise. For each Participant, the number of shares of Common Stock,
including fractions that may be purchased under his Option shall be the lesser of (a) the aggregate
payroll deductions authorized by the Participant in accordance with subsection 3.2(c) for the
Option Period divided by the Option Price or (b) the amount specified in Section 4.2, subject to
the availability of a sufficient number of shares of Common Stock reserved for purchase under the
Plan. In the event there is an insufficient number of shares reserved for purchase under the Plan,
the number of shares purchased shall be adjusted as provided in Section 4.3.

4.2 Limitations on the Grant of Options. No Participant shall be permitted to purchase
Common Stock under the Plan or under any other employee stock purchase plan of the Company or of
any of its subsidiaries or related corporations at a rate which exceeds $25,000 in Fair Market
Value of Common Stock (determined at the Date of Grant of the Option), and no Employee shall be
granted Options for more than 2,500 shares of Common Stock under the Plan at the time the Option is
granted (whether the Option Price is determined with reference to the Date of Grant or the Date of
Exercise) for each calendar year in which any such Option granted to such Employee is outstanding
at any time.

4.3 Insufficient Number of Shares. If the number of shares of Common Stock reserved for
purchase for any Option Period is insufficient to cover the number of shares which Participants
elect to purchase during such Option Period, then the number of shares of Common Stock which each
Participant has a right to purchase on the Date of Exercise shall be reduced to the number of
shares of Common Stock which the Plan Administrator shall determine by multiplying the number of
shares of Common Stock reserved under the Plan for such Option Period by a fraction, the numerator
of which shall be the number of shares of Common Stock which the Participant elected to purchase
during the Option Period and the denominator of which shall be the total number of shares of Common
Stock which all Participants elected to purchase during such Option Period.

4.4 Restriction Upon Assignment. An Option shall not be transferable otherwise than by
will or the laws of descent and distribution and is exercisable during the Participant’s lifetime
only by him. An Option may not be exercised to any extent except by the Participant. The Plan
Administrator and the ESPP Administrator, if any, will not recognize, and shall be under no duty to
recognize, any assignment or purported assignment by a Participant of his Option or of any rights
under his Option.

4.5 Exercise of Options; ESPP Accounts.

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     (a) Exercise of Options. Each Participant will be deemed, automatically, and without any act
on his part, to have exercised his Option on each Date of Exercise to the extent that the amount
accrued under the Plan is sufficient to purchase at the Option Price whole and fractional shares of
the Common Stock, except that the number of shares of Common Stock purchased shall not exceed the
limitations set forth in Section 4.2. The issuance of shares of Common Stock may be effected on a
noncertificated basis to the extent not prohibited by applicable law or the applicable rules of any
stock exchange.

     (b) ESPP Accounts. As soon as practicable on or before the Date of Exercise, the Plan
Administrator shall deliver, or cause to be delivered, to the ESPP Administrator the information
necessary to have the total number of shares of the Common Stock representing exercised Options in
the aggregate (for both whole and fractional shares) deposited into the Participants’ ESPP
Accounts. The shares of Common Stock shall be allocated among the ESPP Accounts based on a
fraction, the numerator of which is the amount accrued for a Participant under the Plan on the Date
of Exercise and the denominator of which shall be the aggregate of the amounts accrued for all
Participants under the Plan on the Date of Exercise. A Participant shall be free to dispose of the
shares of Common Stock in his ESPP Account at any time, subject to the provisions of Sections 4.6
and 4.7 and subject to any administrative blackout periods.

     Each Participant’s ESPP Account shall be administered in accordance with procedures
established from time to time by the ESPP Administrator.

4.6 Withholding Obligations. At the time the Option is exercised, or at the time some or
all of the Common Stock is disposed of, a Participant shall make adequate provision for local,
state, federal and foreign withholding obligations of his Employer, if any, that arise upon
exercise of the Option or upon disposition of the Common Stock. The Employer may withhold from the
Participant’s compensation the amount necessary to meet such withholding obligations.

4.7 Notice of Disposition. By becoming a Participant in the Plan, each Participant agrees
to promptly give the ESPP Administrator, or in the absence of the ESPP Administrator, the Plan
Administrator, notice of any shares of Common Stock disposed of within the later of (a) one year
from the Date of Exercise and (b) two years from the Date of Grant with respect to such Stock, and
the notice shall include the number of shares of Common Stock disposed of and the Date of Exercise
and the Date of Grant for the Common Stock.

4.8 Dispositions in Compliance with Securities Laws. By becoming a Participant in the
Plan, each Participant agrees that any dispositions of shares of Common Stock by such Participant
shall be in compliance with the provisions of federal, state and foreign securities laws, including
the provisions of Section 16(b) of the Exchange Act.

ARTICLE 5: PROVISIONS RELATED TO COMMON STOCK

5.1 Shares Reserved. Subject to the provisions of Section 5.5 (relating to adjustment upon
changes in stock), the number of shares of Common Stock which may be sold pursuant to
Options under the Plan shall not exceed in the aggregate 22,500,000 shares, and may be unissued
shares, reacquired shares or shares bought on the market for purposes of the Plan.

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5.2 No Rights of Stockholder Until Exercise. With respect to shares subject to an Option,
a Participant shall not be deemed to be a stockholder, and he shall not have any of the rights or
privileges of a stockholder until the exercise of his Option. After the exercise of the Option,
each Participant shall have full stockholder rights with respect to all shares of Common Stock in
his ESPP Account, including, but not limited to, voting, dividend and liquidation rights. The ESPP
Administrator shall establish procedures to facilitate the Participant’s voting rights attributable
to the Common Stock in his ESPP Account.

5.3 Registration of Shares of Common Stock. Notwithstanding any other provision of the
Plan, the Company shall have no obligation to issue or deliver any shares of Common Stock under the
Plan or make any other distribution of benefits under the Plan unless such issuance, delivery or
distribution would comply with all applicable laws (including, without limitation, the requirements
of the Securities Act), and the applicable requirements of any securities exchange or similar
entity.

     The Company shall be under no obligation to any Participant to register for offering or resale
or to qualify for exemption under the Securities Act, or to register or qualify under state
securities laws, any shares of Common Stock, or to continue in effect any such registrations or
qualifications if made. The Company may issue certificates for shares with such legends and
subject to such restrictions on transfer and stop-transfer instructions as counsel for the Company
deems necessary or desirable for compliance by the Company with federal and state securities laws.

     The Company shall seek to obtain from each federal, state, foreign or other regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to issue
and sell shares of Common Stock upon the exercise of the Options. If, after commercially
reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency
the authority that counsel for the Company deems necessary for the lawful issuance and sale of
shares of Common Stock in any particular jurisdiction, the Company shall be relieved from liability
to any Participant, except to return to him the Participant’s prior payroll deductions made under
the Plan.

5.4 Certificates for Shares. For shares of Common Stock maintained in ESPP Accounts, the
ESPP Administrator shall establish procedures, including any applicable fees, for the delivery of a
certificate representing the aggregate number of whole shares of Common Stock in a Participant’s
ESPP Account. In the absence of an ESPP Administrator, the Plan Administrator, in its sole
discretion, may determine the method for delivering certificates for shares of Common Stock to
Participants. At the time of the delivery of a certificate to (a) a Participant, (b) a former
Participant or (c) the Participant’s or former Participant’s Beneficiary or Beneficiaries, any
fractional share of Common Stock in the Participant’s or former Participant’s ESPP Account shall be
converted to cash, which shall be distributed to the Participant, former Participant, Beneficiary
or Beneficiaries.

5.5 Changes in Common Stock and Adjustments. The existence of the Plan and the Options
granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or
the Company’s stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the capital stock of the Company or its

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business or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference
stock (whether or not such issue is prior to, on a parity with or junior to the shares of Common
Stock issued under the Plan) or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business or any other corporate act or proceeding of
any kind, whether or not of a character similar to that of the acts or proceedings enumerated
above.

     If there shall be any change in the shares of the Common Stock or the capitalization of the
Company through merger, consolidation, reorganization, recapitalization, stock dividend, stock
split, reverse stock split, split up, spin-off, combination of shares, exchange of shares, dividend
in kind or other like change in capital structure or distribution (other than normal cash
dividends) to stockholders of the Company, the Board, in its sole discretion, to prevent dilution
or enlargement of Participants’ rights under the Plan, will take appropriate action to adjust
accordingly the number of shares subject to the Plan and the number and Option Price of shares
subject to existing Options.

ARTICLE 6: ADMINISTRATION OF PLAN

6.1 Plan Administrator. The Company shall be the “Plan Administrator.”

6.2 Resignation and Removal. The members of the Committee shall serve at the pleasure of
the Board; they may be officers, directors, or employees of the Company or any other individuals.
At any time during his term of office, any member of the Committee or any individual serving as
Plan Administrator may resign by giving written notice to the Board, such resignation to become
effective upon the appointment of a substitute or, if earlier, the lapse of thirty days after such
notice is given as herein provided. At any time during its term of office, and for any reason, any
member of the Committee or any individual serving as Plan Administrator may be removed by the
Board.

6.3 Records and Procedures. The Plan Administrator shall keep appropriate records of its
proceedings and the administration of the Plan and shall make available for examination during
business hours to any Participant, former Participant or any Beneficiary of any Participant or
former Participant such records as pertain to that individual’s interest in the Plan. If the
Committee is performing duties as the Plan Administrator, the Committee shall designate the
individual or individuals who shall be authorized to sign for the Plan Administrator and, upon such
designation, the signature of such individual or individuals shall bind the Plan Administrator.

6.4 Self-Interest of Plan Administrator. Neither the members of the Committee nor any
individual Plan Administrator shall have any right to vote or decide upon any matter relating
solely to himself under the Plan or to vote in any case in which his individual right to claim any
benefit under the Plan is particularly involved. In any case in which any Committee member or
individual Plan Administrator is so disqualified to act, the other members of the Committee shall
decide the matter in which the Committee member or individual Plan Administrator is disqualified.

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6.5 Compensation and Bonding. Neither the members of the Committee nor any individual Plan
Administrator shall receive compensation with respect to their services on the Committee or as Plan
Administrator. To the extent required by applicable law, or required by the Company, neither the
members of the Committee nor any individual Plan Administrator shall furnish bond or security for
the performance of their duties hereunder.

6.6 Plan Administrator Powers and Duties. The Plan Administrator shall supervise the
administration and enforcement of the Plan according to the terms and provisions hereof and shall
have all powers necessary to accomplish these purposes, including, but not by way of limitation,
the right, power, and authority:

     (a) to make rules, regulations, and bylaws for the administration of the Plan that are not
inconsistent with the terms and provisions hereof, and to enforce the terms of the Plan and the
rules and regulations promulgated thereunder by the Plan Administrator;

     (b) to establish procedures for the appointment of designated Beneficiaries by Participants
and former Participants;

     (c) to construe in its discretion all terms, provisions, conditions, and limitations of the
Plan;

     (d) to correct, subject to the provisions of Section 8.2, any defect or to supply any omission
or to reconcile any inconsistency that may appear in the Plan in such manner and to such extent as
it shall deem in its discretion expedient to effectuate the purposes of the Plan;

     (e) to employ and compensate such accountants, attorneys, investment advisors and other
agents, employees, and independent contractors as the Plan Administrator may deem necessary or
advisable for the proper and efficient administration of the Plan;

     (f) to determine in its discretion all questions relating to eligibility; and

     (g) to determine whether and when a Participant has incurred a termination of employment and
the reason for such termination.

6.7 Reliance on Documents, Instruments, etc. The Plan Administrator may rely on any
certificate, statement or other representation made on behalf of the Company, any Employer, any
Employee, any Participant, any former Participant or any Beneficiary, which the Plan Administrator
in good faith believes to be genuine, and on any certificate, statement, report or other
representation made to it by any agent or any attorney, accountant or other expert retained by it
or the Company in connection with the operation and administration of the Plan.

ARTICLE 7: EXTENSION OF PLAN TO EMPLOYERS

7.1 Adoption by Employers.

     (a) With the written approval of the Plan Administrator, any entity that is an Affiliate may
adopt the Plan by appropriate action of its board of directors or noncorporate counterpart, as
evidenced by a written instrument executed by an authorized officer of such entity or an

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executed adoption agreement (approved by the board of directors or noncorporate counterpart of the
Affiliate), agreeing to be bound by all the terms, conditions and limitations of the Plan except
those, if any, specifically described in the adoption instrument, and providing all information
required by the Plan Administrator. The Plan Administrator and the adopting Affiliate may agree to
incorporate specific provisions relating to the operation of the Plan that apply to the adopting
Affiliate only and shall become, as to such adopting Affiliate and its employees, a part of the
Plan.

     (b) The provisions of the Plan may be modified so as to increase the obligations of an
adopting Affiliate only with the consent of such Affiliate, which consent shall be
conclusively presumed to have been given by such Affiliate unless the Affiliate gives the Company
written notice of its rejection of the amendment within 30 days after the adoption of the
amendment.

     (c) The provisions of the Plan shall apply separately and equally to each adopting Affiliate
and its employees in the same manner as is expressly provided for the Company and its employees,
except that the power to appoint or otherwise affect the Plan Administrator and the power to amend
or terminate the Plan shall be exercised by the Company. The Plan Administrator shall act as the
agent for each Affiliate that adopts the Plan for all purposes of administration thereof.

     (d) Any adopting Affiliate may, by appropriate action of its board of directors or
noncorporate counterpart, terminate its participation in the Plan. Moreover, the Plan
Administrator may, in its discretion, terminate an Affiliate’s participation in the Plan at any
time.

     (e) The Plan will terminate with respect to any Affiliate that has adopted the Plan pursuant
to this Section if the Affiliate ceases to be an Affiliate or revokes its adoption of the Plan by
resolution of its board of directors or noncorporate counterpart evidenced by a written instrument
executed by an authorized officer of the Affiliate. If the Plan terminates with respect to any
Affiliate, the employees of that Affiliate will no longer be eligible to be Participants in the
Plan.

7.2 Single Plan. For purposes of the Code, the Plan as adopted by the Affiliates shall
constitute a single plan rather than a separate plan of each Affiliate.

7.3 No Joint Venture Implied. The document which evidences the adoption of the Plan by an
Affiliate shall become a part of the Plan. However, neither the adoption of the Plan by an
Affiliate nor any act performed by it in relation to the Plan shall ever create a joint venture or
partnership relation between it and any other Affiliate.

ARTICLE 8: MISCELLANEOUS

8.1 Use of Funds; No Interest Paid. All funds received or held by the Company under the
Plan will be included in the general funds of the Company free of any trust or other restriction,
and may be used for any corporate purpose. Notwithstanding any other Plan provisions to the
contrary, in the event a Participant’s employment with his Employer is terminated and, if at the
time of such termination, the Participant owes money to any Employer, his Employer shall have the
right, at its discretion prior to the exercise of the Participant’s Option or the payment of the

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Participant’s prior payroll deductions made under the Plan, to deduct any such monies from the
funds to be paid to the Participant.

     No interest will be paid to any Participant with respect to funds held in the Plan or funds
held in the ESPP Account.

8.2 Amendment to the Plan. The Board or the Compensation Committee may amend the Plan at
any time and from time to time, subject to the limitation that approval by the vote of the holders
of a majority of the outstanding securities of the Company entitled to vote shall be required to
amend the Plan (a) to materially increase the benefits accruing to Participants under the Plan, (b)
to materially increase the number of securities which may be issued under the Plan, or (c) to
materially modify the requirements as to eligibility for participation in the Plan.

8.3 Plan Not an Employment Contract. The adoption and maintenance of the Plan is not a
contract between the Employers and their respective employees that gives any employee the right to
be retained in its employment. Likewise, it is not intended to interfere with the rights of any
Employer to terminate an Employee’s employment at any time with or without notice and with or
without cause or to interfere with an Employee’s right to terminate his employment at any time.

8.4 Beneficiary(ies). At the time of the Participant’s or former Participant’s death, (a)
any cash in the Plan or (b) any cash and shares of Common Stock in the ESPP Account shall be
distributed to such Participant’s or former Participant’s (1) executor or administrator or (2) his
heirs at law, if there is no administration of such Participant’s or former Participant’s estate.
The Participant’s or former Participant’s executor or administrator or heirs at law, if there is no
administration of such Participant’s or former Participant’s estate, shall be such Participant’s or
former Participant’s Beneficiaries. Before any distribution is made, the Plan Administrator may
require appropriate written documentation of (a) the appointment of the personal representative of
the Participant’s estate or (b) heirship.

8.5 Severability. Each provision of this Agreement may be severed. If any provision is
determined to be invalid or unenforceable, that determination shall not affect the validity or
enforceability of any other provision.

8.6 Binding Effect. This Agreement shall be binding upon any successor of the Company.

8.7 Limitation on Liability. Under no circumstances shall the Company incur liability for
any indirect, incidental, consequential or special damages (including lost profits) of any form
incurred by any person, whether or not foreseeable and regardless of the form of the act in which
such a claim may be brought, with respect to this Plan or the Company’s role as Plan sponsor.

8.8 Arbitration. Any controversy arising out of or relating to the Plan, including without
limitation, any and all disputes, claims (whether in tort, contract, statutory or otherwise) or
disagreements concerning the interpretation or application of the provisions of the Plan,
Employer’s employment of Participant and the termination of that employment, shall be resolved by
arbitration in accordance with the Employee Benefit Plan Claims Arbitration Rules of the American
Arbitration Association (the “AAA”) then in effect. Within ten (10) business days of

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the initiation of an arbitration hereunder, the Company and the Participant will each separately
designate an arbitrator, and within twenty (20) business days of selection, the appointed
arbitrators will appoint a neutral arbitrator from the AAA National Panel of Employee Benefit Plan
Claims Arbitrators. The arbitrators shall issue their written decision (including a statement of
finding of facts) within thirty (30) days from the date of the close of the arbitration hearing.
The decision of the arbitrators selected hereunder will be final and binding on both parties. This
arbitration provision is expressly made pursuant to and shall be governed by the Federal
Arbitration Act, 9 U.S.C. Sections 1-16 (or replacement or successor statute). Pursuant to Section
9 of the Federal Arbitration Act, the Company and any Participant agrees that any judgment of the
United States District Court for the District in which the headquarters of the Company is located
at the time of initiation of an arbitration hereunder shall be entered upon the award made pursuant
to the arbitration. Nothing in this Section 8.8 shall be construed, in any way, to limit the scope
and effect of Article 6. In any arbitration proceeding full effect shall be given to the rights,
powers, and authorities of the Plan Administrator under Article 6.

8.9 Governing Law. All provisions of the Plan shall be construed in accordance with the
laws of State of Texas, except to the extent preempted by federal law and except to the extent that
the conflicts of laws provisions of the State of Texas would require the application of the
relevant law of another jurisdiction, in which event the relevant law of the State of Texas will
nonetheless apply, with venue for litigation being in Houston, Texas.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on this 27th day of
April, 2009.

	 	 	 	 	 
	 	BAKER HUGHES INCORPORATED

 	 
	 	By:  	/s/ Didier Charreton
 	 
	 	 	Didier Charreton 	 
	 	 	Vice President, Human Resources 	 
	 

Signature page to

Baker Hughes Incorporated

Employee Stock Purchase Plan

(As Amended and Restated Effective as of February 26, 2009)

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