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                                                                   EXHIBIT 10.52

                            BAKER HUGHES INCORPORATED

                              TERMS AND CONDITIONS
                                       OF
                                AWARD AGREEMENTS

1.    TERMINATION OF EMPLOYMENT. The following provisions will apply in the
      event your employment with the Company and all wholly-owned subsidiaries
      of the Company (collectively, the "Company Group") terminates before the
      third anniversary of the Date of Award (the "Third Anniversary Date")
      under the Restricted Stock Unit Award Agreement awarded to you (the
      "Agreement"):

      1.1   Termination Generally. If your employment with the Company Group
      terminates on or before the Third Anniversary Date for any reason other
      than one of the reasons described in Sections 1.2 through 1.5 below, the
      Forfeiture Restrictions then applicable to the Restricted Stock Units
      shall not lapse and the number of Restricted Stock Units then subject to
      the Forfeiture Restrictions shall be forfeited to the Company on the date
      your employment terminates.

      1.2   Potential or Actual Change in Control.

            (i)   Termination Without Cause or for Good Reason in Connection
            With a Potential Change in Control on or Before the Third
            Anniversary Date. If (a) the Company Group terminates your
            employment without Cause on or before the Third Anniversary Date
            prior to a Change in Control of the Company (whether or not a Change
            in Control ever occurs) and such termination is at the request or
            direction of a Person who has entered into an agreement with the
            Company the consummation of which would constitute a Change in
            Control of the Company or is otherwise in connection with or in
            anticipation of a Change in Control of the Company (whether or not a
            Change in Control ever occurs) or (b) you terminate your employment
            with the Company Group for Good Reason on or before the Third
            Anniversary Date prior to a Change in Control of the Company
            (whether or not a Change in Control ever occurs), and such
            termination or the circumstance or event which constitutes Good
            Reason occurs at the request or direction of a Person who has
            entered into an agreement with the Company the consummation of which
            would constitute a Change in Control of the Company or is otherwise
            in connection with or in anticipation of a Change in Control of the
            Company (whether or not a Change in Control ever occurs), then all
            remaining Forfeiture Restrictions shall immediately lapse on the
            date of the termination of your employment relationship.

            (ii)  Employment Not Terminated Before a Change in Control on or
            Before the Third Anniversary Date. If a Change in Control of the
            Company occurs on or before the Third Anniversary Date and your
            employment with the Company

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            Group does not terminate before the date the Change in Control of
            the Company occurs, then all remaining Forfeiture Restrictions shall
            immediately lapse on the date the Change in Control of the Company
            occurs.

      1.3   Divestiture of Business Unit Notwithstanding any other provision of
      the Agreement or these Terms and Conditions to the contrary, if the
      Company Group divests its ownership of a business unit of the Company or
      one or more subsidiaries (a "Unit") and your employment with the Company
      Group terminates in connection with such divestiture (other than for Cause
      or death or due to your becoming permanently disabled within the meaning
      of Section 1.4), the Forfeiture Restrictions shall immediately lapse as to
      that number of Restricted Stock Units that are then subject to Forfeiture
      Restrictions on the date of the termination of your employment
      relationship with the Company Group equal to:

                      (1) multiplied by (2) divided by (3)

      where (1) is the number of Restricted Stock Units that are then subject to
      Forfeiture Restrictions on the date of the termination of your employment
      relationship with the Company Group, (2) is the number of days during the
      period commencing on the Date of Award and ending on the date your
      employment relationship with the Company Group and all of its Affiliates
      is terminated, and (3) is the number of days during the period commencing
      on the Date of Award and ending on the Third Anniversary Date. The
      Forfeiture Restrictions then applicable to all the remaining Restricted
      Stock Units after the application of the previous provisions of this
      Section 1.3 shall not lapse and such Restricted Stock Units shall be
      immediately forfeited to the Company. A "Divestiture" includes the
      disposition of a Unit to an entity that the Company does not consolidate
      in its financial statements, whether the disposition is structured as a
      sale or transfer of stock, a merger, a consolidation or a sale or transfer
      of assets, or a combination thereof, provided that a "Divestiture" shall
      not include a disposition that constitutes a Change in Control.

      1.4   Disability. Notwithstanding any other provision of the Agreement or
      these Terms and Conditions to the contrary, if you become permanently
      disabled before the Third Anniversary Date and while in the active employ
      of one or more members of the Company Group, all remaining Forfeiture
      Restrictions shall immediately lapse on the date of the termination of
      your employment due to your becoming permanently disabled. For purposes of
      this Section 1.4, you will be "permanently disabled" if you qualify for
      long-term disability benefits under a long-term disability program
      sponsored by the Company.

      1.5   Death. Notwithstanding any other provision of the Agreement or these
      Terms and Conditions to the contrary, if you die before the Third
      Anniversary Date and while in the active employ of one or more members of
      the Company Group, all remaining Forfeiture Restrictions shall immediately
      lapse on the date of the termination of your employment due to death.

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2.    PROHIBITED ACTIVITY. Notwithstanding any other provision of these Terms
      and Conditions or the Agreement, if you engage in a "Prohibited Activity,"
      as described below, while employed by one or more members of the Company
      Group or within two years after the date your employment with the Company
      Group terminates, then your right to receive the shares of the Common
      Stock, to the extent still outstanding at that time, shall be completely
      forfeited. A "Prohibited Activity" shall be deemed to have occurred, as
      determined by the Committee in its sole and absolute discretion, if you
      divulge any non-public, confidential or proprietary information of the
      Company or of its past, present or future affiliates (collectively, the
      "Baker Hughes Group"), but excluding information that (a) becomes
      generally available to the public other than as a result of your public
      use, disclosure, or fault, or (b) becomes available to you on a
      non-confidential basis after your employment termination date from a
      source other than a member of the Baker Hughes Group prior to the public
      use or disclosure by you, provided that such source is not bound by a
      confidentiality agreement or otherwise prohibited from transmitting the
      information by a contractual, legal or fiduciary obligation.

3.    TAX WITHHOLDING. To the extent that the receipt of the Restricted Stock
      Units or the lapse of any Forfeiture Restrictions results in income to you
      for any income, employment or other tax purposes with respect to which the
      Company has a withholding obligation, you shall deliver to the Company at
      the time of such receipt or lapse, as the case may be, such amount of
      money as the Company may require to meet its obligation under applicable
      tax laws or regulations, and, if you fail to do so, the Company is
      authorized to withhold from any shares of Common Stock issued under the
      Agreement or from any cash or stock remuneration then or thereafter
      payable to you any tax required to be withheld by reason of such taxable
      income, including (without limitation) shares of the Common Stock
      sufficient to satisfy the withholding obligation based on the last per
      share sales price of the Common Stock for the trading day immediately
      preceding the date that the withholding obligation arises, as reported in
      the New York Stock Exchange Composite Transactions.

4.    NONTRANSFERABILITY. The Agreement is not transferable by you otherwise
      than by will or by the laws of descent and distribution.

5.    CAPITAL ADJUSTMENTS AND REORGANIZATIONS. The existence of the Restricted
      Stock Units shall not affect in any way the right or power of the Company
      or any company the stock of which is awarded pursuant to the Agreement to
      make or authorize any adjustment, recapitalization, reorganization or
      other change in its capital structure or its business, engage in any
      merger or consolidation, issue any debt or equity securities, dissolve or
      liquidate, or sell, lease, exchange or otherwise dispose of all or any
      part of its assets or business, or engage in any other corporate act or
      proceeding.

6.    RESTRICTED STOCK UNITS DO NOT AWARD ANY RIGHTS OF A SHAREHOLDER. You shall
      not have the voting rights or any of the other rights, powers or
      privileges of a holder of the Common Stock with respect to the Restricted
      Stock Units that are awarded hereby. Only after a share of the Common
      Stock is issued in exchange for a Restricted Stock Unit will you have all
      of the rights of a shareholder

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      with respect to such share of Common Stock issued in exchange for a
      Restricted Stock Unit.

7.    EMPLOYMENT RELATIONSHIP. For purposes of the Agreement, you shall be
      considered to be in the employment of the Company as long as you have an
      employment relationship with the Company. The Committee shall determine
      any questions as to whether and when there has been a termination of such
      employment relationship, and the cause of such termination, under the Plan
      and the Committee's determination shall be final and binding on all
      persons.

8.    NO FRACTIONAL SHARES. All provisions of the Agreement concern whole
      Shares. If the application of any provision hereunder would yield a
      fractional share, such fractional share shall be rounded down to the next
      whole share if it is less than 0.5 and rounded up to the next whole share
      if it is 0.5 or more.

9.    NOT AN EMPLOYMENT AGREEMENT. The Agreement is not an employment agreement,
      and no provision of the Agreement shall be construed or interpreted to
      create an employment relationship between you and the Company or any of
      its Affiliates or guarantee the right to remain employed by the Company or
      any of its Affiliates for any specified term.

10.   SECURITIES ACT LEGEND. If you are an officer or affiliate of the Company
      under the Securities Act of 1933, you consent to the placing on any
      certificate for shares of the Common Stock issued under the Agreement an
      appropriate legend restricting resale or other transfer of such shares
      except in accordance with such Act and all applicable rules thereunder.

11.   LIMIT OF LIABILITY. Under no circumstances will the Company be liable 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 the Plan or the Company's role as Plan sponsor.

12.   MISCELLANEOUS. The Agreement is awarded pursuant to and is subject to all
      of the provisions of the Plan, including amendments to the Plan, if any.
      In the event of a conflict between these Terms and Conditions and the Plan
      provisions, the Plan provisions will control. The term "you" and "your"
      refer to the Awardee named in the Agreement. Capitalized terms that are
      not defined herein shall have the meanings ascribed to such terms in the
      Plan or the Agreement.

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                                                                   Exhibit 10.53

                            BAKER HUGHES INCORPORATED

          Compensation Table for Named Executive Officers and Directors

<TABLE>
<CAPTION>
                                                                        Base Salary
                                                                         Effective
Named Executive Officers:                          Base Salary           June 2005
                                                  -------------         -----------
<S>                                               <C>                   <C>
Chad C. Deaton(1)                                 $  825,000              $925,000
James R. Clark(2)                                    625,000               645,000
G. Stephen Finley(2)                                 520,000               535,000
Alan R. Crain Jr.(2)                                 410,000               425,000
Douglas J. Wall(2)                                   375,000               375,000

Non-Employee Directors(3):

Annual Cash Retainer                              $   60,000
Audit/Ethics Committee Chairman Annual Retainer:  $   20,000
Other Committee Chairman Annual Retainer:         $   15,000
Audit/Ethics Committee Members Retainer:          $   10,000
Other Committee Members Retainer
          (Excluding Executive Committee):        $    5,000

Annual Non-Retainer Equity (restricted stock
          awarded 50% in January and
          50% in July of each year):              $   70,000
</TABLE>

(1) Mr. Deaton has an Employment Agreement with Baker Hughes Incorporated, filed
as Exhibit 10.3 to Current Report on Form 8-K filed October 7, 2004.

(2) In addition to their base salaries, these named executive officers, at the
discretion of the Board of Directors can receive equity compensation pursuant to
the 2002 Director & Officer Long-Term Compensation Plan, filed as Exhibit 10.2
on Form 10-Q for the quarter ended September 30, 2003. These named executive
officers also are entitled to participate in the Company's 1995 Employee Annual
Incentive Compensation Plan, as amended, filed as Exhibit 10.17 on Form 10-K for
the year ended December 31, 2002.

(3) Non-employee directors are reimbursed for reasonable travel and related
expenses.

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