Document:

exv10w59

Exhibit 10.59

	 	 	 
	Baker Hughes Incorporated

	 	2929 Allen Parkway, Suite 2100
	 

	 	Houston, Texas 77019-2118
	 

	 	P.O. Box 4740
	February 25, 2009

	 	Houston, Texas 77210-4740
	 

	 	Tel 713 439-8600
	 

	 	Fax 713 439-8699

Mr. David Barr

35 Southgate

The Woodlands, Texas 77380

Dear David:

As we have agreed, your employment with Baker Hughes Incorporated (hereinafter referred to as the
“Company”) will terminate upon your retirement from the Company on April 30, 2009. The purpose of
this letter (the “Agreement”) is to set forth certain agreements and understandings regarding,
among other things:

	 	•	 	The termination of your employment;
	 
	 	•	 	Certain benefits the Company has agreed to provide to you upon termination of your
employment;
	 
	 	•	 	Your agreement to certain obligations of confidentiality and cooperation; and
	 
	 	•	 	Your release of any and all claims against the Company.

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

	1.	 	TERMINATION OF EMPLOYMENT:
	 
	 	 	You have decided to retire and resign your position as an officer of the Company on April
30, 2009 (the “Effective Date”). Your employment terminates as of the Effective Date.
	 
	2.	 	SEPARATION BENEFITS:
	 
	 	 	The Company will provide you with two kinds of separation benefits at the time of your
termination, regular separation benefits to which you are entitled as a result of your
termination and enhanced separation benefits which are being offered to you in recognition
of your specialized knowledge, and of your position as an officer of the Company. You will
receive the regular separation benefits even if you decline to sign this Agreement and
execute the release of claims. These benefits are described in Exhibit A attached hereto.

 

 

	3.	 	COVENANTS:
	 
	 	 	In consideration of the Consulting Agreement between the Company and you effective May 1,
2009, you agree to the following:

     (a) Non-Solicitation

Following the Effective Date, and for a period of 18 months thereafter, you shall not,
directly or indirectly:

     (1) interfere with the relationship of the Company or any affiliate with, or endeavor
to entice away from the Company or any affiliate, any individual or entity who was or is a
material customer or material supplier of, or who has maintained a material business
relationship with, the Company or its affiliates;

     (2) establish (or take preliminary steps to establish) a business with, or cause or
attempt to cause others to establish (or take preliminary steps to establish) a business
with, any employee or agent of the Company or any of its affiliates, if such business is or
will compete with the Company or any of its affiliates (provided that it shall not be a
violation of this covenant for you to take any action to the extent that the Company agrees
to permit such action in accordance with the provisions of Section 13 of the Consulting
Agreement); or;

     (3) employ, engage as a consultant or adviser, or solicit the employment, engagement as
a consultant or adviser, of any employee or agent of the Company or any of its affiliates,
or cause or attempt to cause any individual or entity to do any of the foregoing.

     (b) Cooperation and Assistance

Definition of Cooperation — As used in this Agreement, “cooperate” and
“cooperation” includes making yourself available in response to all reasonable requests by
the Company or the Securities and Exchange Commission (“SEC”) or Department of Justice
(“DOJ”) for information, whether the request is informal or formal (e.g., in response to a
subpoena in a legal proceeding), and includes fully, completely, and truthfully answering
questions or providing testimony in any related proceeding, civil or criminal.

Agreement to Cooperate — You agree, acknowledge, represent and warrant that:

     (1) you are aware that the Company has been under investigation by the SEC and the DOJ;

     (2) you have (i) not engaged in, nor encouraged any individual, in any way, to engage
in the destruction or secretion of any information, in any form, including but not limited
to documents and emails (“documentation”), that might be relevant to any

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investigation referenced in subsection 3(a)(1) above; (ii) turned over all documentation in
response to prior requests; and (iii) responded, fully and truthfully, to all questions
related to or arising from the subject matter of any such investigation that have been posed
to you by employees, representatives of the Company, or any government agency;

     (3) for a period of two (2) years after the Effective Date, upon reasonable request,
you will cooperate fully with the Company and its affiliates, past or present, in connection
with any internal investigation initiated by the Company, its affiliates, and any successors
in interest, as well as with any external investigation initiated by any government or
agency or instrumentality thereof in accordance with the Company’s Internal Investigations
Policy and Cooperation with Government Investigations Policy;

     (4) for a period of two (2) years after the Effective Date, upon reasonable request of
the Company, any subsidiary of the Company, or any successor-in-interest, you will provide
all documentation and information in your possession, custody, or control that is related to
any internal or external investigation of the Company and its affiliates;

     (5) after two (2) years after the Effective Date, you agree upon request to provide
continuing reasonable cooperation with the Company or any of its affiliates in responding to
internal or governmental investigations.

All reasonable expenses you incur in rendering cooperation under this subsection 3(b) will
be reimbursed by the Company.

(c) Confidentiality

Confidential Information — During the course of your employment with the Company,
you have had access and received confidential information. You are obligated to keep
confidential all such confidential information for a period of not less than one (1) year
following the Effective Date of this Agreement. Moreover, you understand and acknowledge
that your obligation to maintain the confidentiality of trade secrets and other intellectual
property is unending. As an exception to this confidentiality obligation you may disclose
the confidential information (i) in connection with enforcing your rights under any plan
relevant to the terms of this Agreement, or if compelled by law, and in either case, you
shall provide written notice to the Company prior to the disclosure or (ii) if the Company
provides written consent prior to the disclosure.

(d) Property

Agreement to Return Company Property — Immediately prior to the Effective Date, or
such earlier date as the Company may reasonably determine appropriate, you will return to
the Company all Company property in your possession, including but not limited to,
computers, credit cards and all files, documents and records of the Company, in whatever
medium and of whatever kind or type. You agree and hereby certify that you have returned, or
will return prior to the Effective Date, all proprietary or confidential information or
documents relating to the business and affairs of the Company and its affiliates. You
further agree that should it subsequently be determined by the Company that,

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notwithstanding the foregoing certification, you have inadvertently failed to return all
proprietary or confidential information and documents in your possession or control relating
to the business and affairs of the Company and its affiliates, you will be obligated to
promptly return to the Company such proprietary or confidential information and documents in
your possession or control relating to the business and affairs of the Company and its
affiliates.

	4.	 	RELEASE OF CLAIMS:
	 
	 	 	You hereby acknowledge that your relationship with the Company is an “at-will employment
relationship,” meaning that either you or the Company could terminate the relationship with
or without notice and or without cause, at any time. Nevertheless, in consideration for the
Consulting Agreement and the enhanced separation benefits described in Exhibit A of this
Agreement, you hereby provide the Company with an irrevocable and unconditional release and
discharge of claims.
	 
	 	 	This release and discharge of claims applies to (i) Baker Hughes Incorporated, (ii) to each
and all of its subsidiaries and affiliated companies, (collectively, “the Company”), (iii)
to the Company’s officers, agents, directors, supervisors, employees, representatives, and
their successors and assigns, whether or not acting in the course and scope of employment,
and (iv) to all persons acting by, through, under, or in concert with any of the foregoing
persons or entities.
	 
	 	 	The claims subject to this release include, without limitation, any and all claims related
or in any manner incidental to your employment with the Company or the termination of that
employment relationship. The parties understand the word “claims” to include all actions,
claims, and grievances, whether actual or potential, known or unknown, and specifically but
not exclusively all claims arising out of your employment with the Company and the
termination of your employment. All such claims (including related attorneys’ fees and
costs) are forever barred by this Agreement and without regard to whether those claims are
based on any alleged breach of a duty arising in a statute, contract, or tort; any alleged
unlawful act, including, without limitation, age discrimination; any other claim or cause or
cause of action; and regardless of the forum in which it might be brought. This release
applies to any claims brought by any person or agency on behalf of you or any class action
pursuant to which you may have any right or benefit.
	 
	 	 	You promise never to file a lawsuit asserting any claims that are released by you and
further promise not to accept any recoveries or benefits which may be obtained on your
behalf by any other person or agency or in any class action and do hereby assign any such
recovery or benefit to the Company. If you sue the Company in violation of this Agreement,
you shall be liable to the Company for its reasonable attorneys’ fees and other litigation
costs incurred in defending against such a suit. Additionally, if you sue the Company in
violation of this Agreement, the Company can require you to return all monies and other
benefits paid to you pursuant to this Agreement.
	 
	 	 	Notwithstanding the foregoing, the release contained herein shall not apply to (i) any
rights that you may have under the Company’s retirement plans including the Baker Hughes

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	 	 	Incorporated Pension Plan and the Baker Hughes Incorporated Thrift Plan, (ii) any rights you
may have under this Agreement, (iii) your right under applicable law (i.e., the COBRA law)
to continued medical insurance coverage at your expense, and (iv) your statutory right to
file a charge with the Equal Employment Opportunity Commission (“EEOC”) or the Texas
Commission on Human Rights (“TCHR”), to participate in an EEOC or TCHR investigation or
proceeding, or to challenge the validity of the release, consistent with the requirements of
29 U.S.C. § 626(f)(4).
	 
	 	 	In connection with this release, you understand and agree that:

(a) You have a period of 21 days within which to consider whether you execute this
Agreement, that no one hurried you into executing this Agreement during that 21 day period,
and that no one coerced you into executing this Agreement;

(b) You have carefully read and fully understand all the provisions of the release set forth
in Section 4 of this Agreement, and declare that the Agreement is written in a manner that
you understand;

(c) You are, through this Agreement, releasing the Company from any and all claims you may
have against the Company and the other parties specified above, and that this Agreement
constitutes a release and discharge of claims arising under the Age Discrimination in
Employment Act (ADEA), 29 U.S.C. § 621-634, including the Older Workers’ Benefit Protection
Act, 29 U.S.C. § 626(f);

(d) You declare that your agreement to all of the terms set forth in this Agreement is
knowing and voluntary;

(e) You knowingly and voluntarily intend to be legally bound by the terms of this Agreement;

(f) You acknowledge that the Company is hereby advising you in writing to consult with an
attorney of your choice prior to executing this Agreement; and

(g) You understand that rights or claims that may arise after the date this Agreement is
executed are not waived. You understand that you have a period of seven days to revoke your
agreement to give the Company a complete release in exchange for separation benefits, and
that you may deliver notification of revocation by letter or facsimile addressed to the
Company’s Senior Labor and Employment Counsel. You understand that this will not become
effective and binding, and that none of the separation benefits described above in Section 2
of this Agreement will be provided to you until after the expiration of the revocation
period. The revocation period commences when you execute this Agreement and ends at 11:59
p.m. on the seventh calendar day after execution, not counting the date on which you execute
this Agreement. You understand that if you do not deliver a written notice of revocation to
the Company’s Senior Labor and Employment Counsel before the end of the seven-day period
described above, this Agreement will become final, binding and enforceable.

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	 	 	The Company’s decision to offer the Consulting Agreement and the enhanced separation
benefits in exchange for a release of claims shall not be construed as an admission by the
Company of (i) any liability whatsoever, (ii) any violation of any of your rights or those
of any person, or (iii) any violation of any order, law, statute, duty, or contract. The
Company specifically disclaims any liability to you or to any other person for any alleged
violation of any rights possessed by you or any other person, or for any alleged violation
of any order, law, statute, duty, or contract on the part of the Company, its employees or
agents or related companies or their employees or agents.
	 
	 	 	You represent and acknowledge that in executing this Agreement you do not rely and have not
relied upon any representation or statement made by the Company, or by any of the Company’s
agents, attorneys, or representatives with regard to the subject matter, basis, or effect of
the release set forth in this Agreement, other than those specifically stated in this
Agreement.
	 
	 	 	The release set forth in this Section 4 of this Agreement shall be binding upon you, and
your heirs, administrators, representatives, executors, successors, and assigns, and shall
inure to the benefit of the Company as defined above. You expressly warrant that you have
not assigned, transferred or sold to any person or entity any rights, causes of action, or
claims released in this Agreement.
	 
	5.	 	D&O INSURANCE AND INDEMNIFICATION RIGHTS:
	 
	 	 	This Agreement shall in no way diminish or otherwise affect any of your rights under that
Indemnification Agreement between you and the Company made and executed December 3, 2003, as
amended January 1, 2009, and such agreement shall remain in full force and effect.
	 
	6.	 	MISCELLANEOUS:
	 
	 	 	Exclusive Rights and Benefits — Except as otherwise provided in this Agreement, the
benefits described in this Agreement supersede, negate and replace any other benefits owed
to or offered by the Company to you. This Agreement will be administered by the Company’s
Senior Labor and Employment Counsel, who will also resolve any issues regarding the
interpretation, implementation, or administration of the benefits described above. However,
this provision shall not be construed to limit your legal rights if a disagreement exists to
contest the decision of the Company’s Senior Labor and Employment Counsel.
	 
	 	 	Entire Agreement — This Agreement sets forth the entire agreement between you and
the Company with respect to each and every issue addressed in this Agreement, and that
entire, integrated agreement fully supersedes any and all prior agreements or
understandings, oral or written, between you and the Company pertaining to the subject
matter of this Agreement.
	 
	 	 	Exclusive Choice of Law and Arbitration Agreement — This Agreement constitutes an
agreement that has been executed and delivered in the State of Texas, and the validity,
interpretation, performance, and enforcement of that agreement shall be governed by the laws
of that State.

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	 	 	In the event of any dispute or controversy arising out of or under this Agreement, or
concerning the substance, interpretation, performance, or enforcement of this Agreement, or
in any way relating to this Agreement (including issues relating to the formation of the
agreement and the validity of this arbitration clause), you agree to resolve that dispute or
controversy, fully and completely, through the use of final, binding arbitration. This
arbitration agreement applies to any disputes arising under (i) the common law, (ii) federal
or state statutes, laws or regulations, and also to (iii) any dispute about the
arbitrability of any claim or controversy. You further agree to hold knowledge of the
existence of any dispute or controversy subject to this Agreement to arbitrate, completely
confidential. You understand and agree that this confidentiality obligation extends to
information concerning the fact of any request for arbitration, any ongoing arbitration, as
well as all matters discussed, discovered, or divulged, (whether voluntarily or by
compulsion) during the course of such arbitration proceeding. Any arbitration conducted
pursuant to this arbitration provision will be conducted in accordance with the rules of the
American Arbitration Association in accordance with its rules governing employment disputes
and the arbitrator shall have full authority to award or grant all remedies provided by law.
The arbitrator will have the discretion to permit discovery that the arbitrator deems
appropriate for a full and fair hearing. The arbitrator will issue a reasoned award, and the
award of the arbitrator shall be final and binding. A judgment upon the award may be
entered and enforced by any court having jurisdiction. Any arbitration proceeding resulting
hereunder will be conducted in Houston, Texas before an arbitrator selected by you and the
Company by mutual agreement, or through the American Arbitration Association. This
arbitration agreement does not limit or affect the right of the Company to seek an
injunction to maintain the status quo in the event that the Company believes that you have
violated any provision of Section 3 of this Agreement. This arbitration agreement does not
limit your right to file an administrative charge concerning the validity of the release set
forth in Section 4 of this Agreement, with any appropriate state or federal agency.
	 
	 	 	Severability and Headings — The invalidity or unenforceability of a term or
provision of this Agreement shall not affect the validity or enforceability of any other
term or provision of this Agreement, which shall remain in full force and effect. Any titles
or headings in this Agreement are for convenience only and shall have no bearing on any
interpretation of this Agreement.

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Please initial each page and sign below.

ENTERED INTO in Houston, Texas as of the 25th day of February, 2009.

BAKER HUGHES INCORPORATED

	 	 	 
	By:

	 	/s/ Chad C. Deaton
	 

	 	 
	 

	 	Chad C. Deaton
	 

	 	Chairman, President and Chief Executive Officer
	 
	 	 
	ENTERED INTO in Houston, Texas as of the 25th day of February, 2009.
	 
	 	 
	By:

	 	/s/ David H. Barr
	 

	 	 
	 

	 	David H. Barr

 

 

Exhibit A

David Barr

Summary of Compensation and Benefits

April 2009

Retirement Effective Date: April 30, 2009

Regular Separation Benefits

Health & Welfare Programs

     As you are participating in medical, dental,
and/or vision coverage for yourself and your
eligible dependent(s), all active coverage
will end as of the Effective Date. The
Benefits Center will send you a packet
regarding continuation of benefits under
COBRA (Consolidated Omnibus Benefits
Reconciliation Act), and you and/or your
eligible dependent(s) may elect to continue
coverage for an additional 18 months,
provided you timely enroll for coverage and
make the required premium payments.

     As an alternative to COBRA continuation of
benefits, you have the option of enrolling
in the Retiree Medical Program based on your
age and years of service. If you select
this option, the Benefits Center will send
you a packet regarding continuation of
benefits, and you and/or your eligible
dependent(s) may elect to continue coverage.
Your retiree medical premiums are
subsidized by the Company and will be billed
to you by the Benefits Center. You will be
solely responsible for payment of the
retiree premiums for both yourself and your
covered dependents, if any. You can also
contact the Benefits Center directly at
1-866-244-3539 for more information and to
answer any questions. All other health and
welfare benefits end as of the Effective
Date.

Retirement Programs

Thrift Plan

     You have the option of leaving your money in
the Baker Hughes Incorporated Thrift Plan,
or you may request a distribution of your
account balance at any time after the
Effective Date.

Pension Plan

     You have the option of leaving your money in
the Baker Hughes Incorporated Pension Plan,
or you may request a distribution of your
Pension Plan benefit at any time after the
Effective Date.

Supplemental Retirement Plan

     Your vested account balance will be paid out
according to your elections previously
submitted and the terms of the Baker Hughes
Incorporated Supplemental Retirement Plan
(“SRP”).

ICP Bonus

     Your 2008 ICP bonus will be paid in
accordance with the provisions of the ICP
and your applicable election (if any) under
the SRP. You will be eligible to receive a
prorated ICP bonus for the 2009 fiscal year
based upon your length of service
(4/12ths) during the 2009 fiscal
year at the same time as other employees.

	 	 	 	 	 
	2009 Bonus at EV (56%)
	 	$	252,000	 
	Value of Bonus
	 	$	84,000	 
	(prorated four months)
	 	 	 	 

1

 

Discretionary Bonus

     You will be eligible to receive a
discretionary bonus based on the achievement
of non-financial performance goals in an
amount no less than the average bonus paid
to other participants.

	 	 	 	 	 
	Target Bonus at EV (14%)
	 	$	63,000	 
	Value of Bonus
	 	$	21,000	 
	(prorated four months)
	 	 	 	 

Long-Term Incentives

Stock Options

     All of your previously granted options will
become fully vested upon your Retirement
Date (to the extent they are not already
fully vested) and may be exercised in
accordance with the terms of the grants.
Options granted in or after 2004 expire five
years from your retirement date. You are
not eligible for any future equity awards.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Options
	Grant	 	Grant	 	Options	 	Grant	 	Out-
	Date	 	Date	 	Granted	 	Price	 	Standing
	7/27/2005
	 	NQ	 	 	14,750	 	 	$56.21	 	 	4,917	 
	1/25/2006
	 	ISO	 	 	1,332	 	 	$75.06	 	 	1,332	 
	1/25/2006
	 	NQ	 	 	6,538	 	 	$75.06	 	 	6,538	 
	7/27/2006
	 	NQ	 	 	7,870	 	 	$80.73	 	 	7,870	 
	1/24/2007
	 	ISO	 	 	1,459	 	 	$68.54	 	 	1,459	 
	1/24/2007
	 	NQ	 	 	6,722	 	 	$68.54	 	 	6,722	 
	7/25/2007
	 	NQ	 	 	10,191	 	 	$82.28	 	 	10,191	 
	1/23/2008
	 	ISO	 	 	1,430	 	 	$69.92	 	 	1,430	 
	1/23/2008
	 	NQ	 	 	9,244	 	 	$69.92	 	 	9,244	 
	8/11/2008
	 	NQ	 	 	9,716	 	 	$77.20	 	 	9,716	 
	1/21/2009
	 	NQ	 	 	43,136	 	 	$29.18	 	 	43,136	 
	1/21/2009
	 	ISO	 	 	3,427	 	 	$29.18	 	 	3,427	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	115,815	 	 	 	 	 	105,982	 

Performance Unit Awards

     You will receive a prorated portion of the
Performance Units awarded to you under the
2002 D&O Plan in 2007, but you will forfeit
1,213 Performance Units awarded in 2007.
You will also receive a prorated portion of
the Performance Units awarded to you under
the 2002 D&O Plan in 2008, but you will
forfeit 4,014 Performance Units awarded in
2008. Depending on results achieved, you
will be eligible to receive a prorated award
based on actual results as defined in the
terms and conditions of the Performance Unit
Award Agreements provided with each grant of
Performance Units in 2007 and in 2008.
Payments for the 2006 awards are scheduled
for March 13, 2009. You will not receive
any further awards under the 2002 D&O Plan.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Adjusted
	Grant	 	 	 	 	 	Cycle End	 	Days in	 	Performance
	Date	 	Units	 	Date	 	Plan	 	Units
	1/25/2006
	 	 	4,125	 	 	12/31/2008	 	full cycle	 	 	4,125	 
	1/24/2007
	 	 	5,403	 	 	12/31/2009	 	850	 	 	4,190	 
	1/23/2008
	 	 	7,200	 	 	12/31/2010	 	485	 	 	3,186	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	16,728	 	 	 	 	 	 	 	11,501	 

Perquisites

     All perquisites terminate as of the
Effective Date and you will receive no
perquisite payments for any period after the
Effective Date. The Company will make
arrangements to transfer your country club
membership from a corporate membership to a
personal membership.

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Vacation

     You will be paid for any accrued but unused
2009 vacation. You will not accrue further
vacation following the Effective Date.

Final Expenses

     The Company agrees to reimburse you for all
outstanding business expenses in accordance
with Company policy. You will prepare and
submit a final expense account reimbursement
request for expenses incurred prior to the
Effective Date. Such an expense account
reimbursement request will be reviewed and
paid in accordance with Company policy.

Enhanced Separation Benefits

Restricted Stock

     You have been awarded 5,984 shares of
restricted stock under the 2002 D&O Plan
that are scheduled to vest after the
Effective Date. As an enhanced separation
benefit, the Company agrees that a total of
5,984 restricted shares that would otherwise
vest after the Effective Date, will vest as
of the Effective Date. Unless you elect
otherwise by remitting to the Company cash
in an amount necessary to satisfy the
Company’s tax withholding obligation arising
with respect to the vesting of your
restricted stock, the Company shall satisfy
its tax withholding obligation by
withholding shares with a fair market value
equal to the withholding obligation.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grant	 	Shares	 	 	 	 
	Date	 	Granted	 	Vested	 	Unvested
	1/24/2007
	 	 	5,078	 	 	 	3,385	 	 	 	1,693	 
	1/23/2008
	 	 	6,436	 	 	 	2,145	 	 	 	4,291	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	11,514	 	 	 	5,530	 	 	 	5,984	 

3exv10w60

Exhibit 10.60

CONSULTING AGREEMENT

BETWEEN BAKER HUGHES INCORPORATED AND

DAVID H. BARR

     This Consulting Agreement (hereinafter “Agreement”) is made as of the 30th day of April, 2009,
by and between Baker Hughes Oilfield Operations, Inc., a California corporation (hereinafter
“Company”), having a mailing address of 2929 Allen Parkway, Suite 2100, Houston, Texas, 77019
(hereinafter “Company”), and David H. Barr, an individual having a mailing address of 35 Southgate,
The Woodlands, Texas 77380 (hereinafter “Consultant”).

W I T N E S S E T H

     WHEREAS, Consultant possesses certain knowledge, experience and goodwill in the field of
management and business development; and

     WHEREAS, the Company is desirous of utilizing Consultant’s general expertise and Consultant is
willing to assist the Company with certain tasks from time to time;

     NOW, THEREFORE, in consideration of the premises and the mutual convenience and conditions
contained herein, the parties agree as follows:

1. Services: Consultant will render consulting services to the Company as listed in Schedule A and
will employ its best efforts in this area on behalf of the Company and persons affiliated with the
Company, all as may be requested from time to time by any authorized representative of the Company.
All services and work shall be performed by Consultant in compliance with all applicable laws,
rules and regulations. Consultant shall have exclusive direction and control over the manner and
method of carrying out the tasks for accomplishing the services to be provided by Consultant under
this Agreement. It is intended that the consulting services Consultant will perform under this
Agreement will not be at a level that exceeds 20 percent of the average level of services
Consultant performed for the Company over the 36-month period immediately preceding May 1, 2009.

2. Term of Agreement: May 1, 2009 to October 31, 2010.

3. Independent Contractor or Consultant: It is the intention of the parties and Consultant agrees
he is an independent contractor, and while providing services under this Agreement, is not an agent
or employee, joint venture or partner of the Company, and has no authority to obligate or bind the
Company in any way to third parties without the express written permission of an appropriate
officer of the Company. Nothing in this Agreement shall render Consultant an employee or agent of
the Company, nor authorize or empower Consultant to speak for, represent, or obligate the Company
in any way. Consultant shall indemnify, defend and hold the Company harmless from any injury or
damage sustained by the Company as a result of any commitment
made by Consultant on behalf of the Company without the Company’s express written authorization.

 

 

4. Method of Performing Services: Consultant will determine the method, details, and means of
performing the work to be carried out for Company. Company shall have no right to, and shall not
control the manner or determine the method of accomplishing such work. Company, however, requires
Consultant at all times to observe security and safety policies of Company. Consultant warrants
that the services performed hereunder will be performed using the standards, practices, methods and
procedures and exercising that degree of skill, care and diligence, prudence and foresight which
would reasonably and ordinarily be expected from a skilled and experienced person engaged in a
similar type of undertaking under the same or similar circumstances.

5. Non-Exclusive Services: Subject to the provisions of this Agreement (including the
non-competition provisions of Section 13), during the term of this Agreement, Consultant may
represent, perform services for, or be retained by such additional persons or entities as
Consultant deems appropriate; provided however, that none of such activities shall interfere with
Consultant’s ability to perform its obligations under this Agreement, or adversely affect the
business, operations or financial condition of the Company or its affiliates.

6. Benefits: In connection with his services hereunder, Consultant shall not be eligible for or
claim any benefits or perquisites which the Company provides to its employees including, but not
limited to, medical, dental and life insurance coverage, bonuses, paid time off, or stock purchase
plan, pension plan or thrift plan coverage. Nothing in this Section 6 shall affect or apply to any
benefits which Consultant has already accrued through the date of his retirement.

7. Conduct: Consultant shall conduct work in accordance with Company policies including but not
limited to the Business Code of Conduct, Equal Employment Opportunity & Anti-Harassment, Electronic
Communications and Global Expense Reporting. Copies of these policies are available on-line or
upon request.

8. Fees: In consideration for the rendering of Consultant’s services, the Company will pay
Consultant a fee as agreed in Schedule A. Consultant’s consulting fees earned during the six-month
period commencing on the date of Consultant’s separation from service will be accumulated and paid
to Consultant on the date that is six months following the date of Consultant’s separation from
service together with interest on such accumulated amounts calculated using an interest rate equal
to the six month Interbank Offered Rate in effect on the date of Consultant’s separation from
service plus two percentage points. Thereafter, subject to the following provisions of this
Section 8, Consultant’s consulting fees earned during the remainder of the consulting period will
be paid on a monthly basis. For purposes of this Agreement the term “separation from service” has
the meaning ascribed to that term in Section 409A of the Internal Revenue Code of 1986, as amended.
In the event of the death of Consultant during the term of this Agreement, Company shall pay to
the estate or personal representative of Consultant, any monthly fees reflected on Schedule A for
the remainder of the term of this Agreement that have not yet been paid. Such payment shall be
made in a single sum in cash on the date that is 30 days following the date of Consultant’s death.
In the event of the occurrence of a Change in Control (as defined
below) during the term of this Agreement that constitutes a change in control event within the meaning of
Department of Treasury Regulation Section 1.409A-3(i)(5), Company shall pay to Consultant any
monthly fees reflected on Schedule A for the remainder of the term of this Agreement that have not
yet been paid. Such payment shall be made in a single sum in cash on the

2

 

earlier of (i) the date
of the Change in Control or (ii) the date that is six months following the date of Consultant’s
Separation from Service. For purposes of this Agreement, the term “Change in Control” has the
meaning ascribed to that term in the Baker Hughes Incorporated 2002 Director and Officer Long-Term
Incentive Plan in effect for awards granted after July 24, 2008. No accelerated payment in the
event of a qualifying Change in Control shall relieve Consultant of his obligations under this
Agreement, including, but not limited to Consultant’s obligation to personally perform all services
hereunder for the remainder of the term of this Agreement. In the event Consultant becomes
Disabled (as defined below) during the term of this Agreement, Company shall pay to Consultant any
monthly fees reflected on Schedule A for the remainder of the term of this Agreement that have not
yet been paid. Such payment shall be made in a single sum in cash on the earlier of (i) the date
Consultant becomes Disabled or (ii) the date that is six months following the date of Consultant’s
Separation from Service. For purposes of this Agreement, the term “Disabled” has the meaning
ascribed to that term in section 409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended.
There shall be no duplication of payment of consulting fees under this Agreement; accordingly, upon
the accelerated payment of consulting fees in the event of Consultant’s death or Disability or the
occurrence of a Change in Control no further consulting fees shall be payable under this Agreement.

9. Expenses: Except as otherwise agreed in this Agreement Consultant shall be responsible for all
costs including transportation and personal incidentals and expenses incident to the performance of
services for Company, including all costs incurred by Consultant to do business. Company will
reimburse Consultant only for transportation, personal and miscellaneous business expenses incurred
in rendering services hereunder as a result of a prior express written request by an authorized
representative of Company and incurred in accordance with the then current Baker Hughes
Incorporated expense reimbursement policies. Expenses will be reimbursed in a timely manner upon
presentation by Consultant to Company of properly completed expense reports with all supporting
receipts.

10. Payment of Taxes by Consultant: Consultant shall pay to the appropriate taxing authorities
federal, state and local income taxes, social security taxes, and unemployment insurance taxes
applicable to Consultant. Consultant shall defend, indemnify and hold harmless Company, Company’s
officers, directors, employees and agents, from and against any claims, liabilities or expenses
relating to Consultant’s taxes attributable to Consultant’s compensation under this Agreement.

11. State and Federal Taxes: As Consultant is not a Company employee, Company shall not take any
action or provide Consultant with any benefits or commitments inconsistent with the classification
of Consultant as an independent contractor. In particular: (1) Company will not withhold FICA
(Social Security) from Consultant’s payments; (2) Company will not make state or federal insurance
contributions on behalf of Consultant; (3) Company will not withhold state and federal income taxes
from payments to Consultant; (4) Company will not make disability insurance contributions on behalf of Consultant; and (5) Company will not obtain workers’
compensation insurance on behalf of Consultant.

12. Confidential Information: Consultant recognizes and acknowledges it will have access to
certain confidential information (written or otherwise) of the Company (“Confidential

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Information”), and that such information constitutes valuable, special and unique property of the
Company. Consultant further acknowledges that Consultant’s work hereunder will involve proprietary
and confidential information, and thus also will be subject to the terms of this Section 13.
Consultant will not, during or after the term of this Agreement, use for the benefit of himself or
any other or disclose any of such confidential information to any person or firm, corporation,
association or other entity for any reason or purpose whatsoever (except to authorized
representatives of the Company) without the express written permission of an authorized
representative of the Company. Upon completion of services under and upon termination of this
Agreement for any reason, Consultant will promptly return to Company all drawings, manuals,
letters, notes, notebooks, reports, customer lists, mailing lists and all other material, models,
parts and records of any kind whatsoever, including all extra copies thereof, that were acquired
from Company, created for Company, or created in conjunction with the business of Company, and that
contain Confidential Information.

13. Non-Competition and Non-Solicitation: Consultant hereby agrees that, to protect the
Confidential Information during the term of this Agreement, he will not be engaged, directly or
indirectly, as an executive, consultant or an employee of an enterprise that is a competitor of the
Company. For purposes of this Agreement, the term “competitor of the Company” will be construed
broadly to include without limitation any entity or enterprise that employs engineers,
geoscientists, and field service personnel who apply knowledge and technology to find, develop, and
produce oil and gas, as well as those enterprises that provide products and services for drilling,
formation evaluation, completion and production of hydrocarbons.

In addition to and without limiting the foregoing, during the term of this Agreement, prior to
engaging in any activity, as an employee, consultant or in any other capacity, on Consultant’s
behalf or for any person, association, or entity, that a reasonable person would view as being
competitive with the business of the Company, Consultant shall submit a written request to Chad
Deaton’s attention at the Company, in order to determine if such activity would violate the
restrictions in this Section 13. Such request shall include the name and address of the person,
association or entity for whom Consultant would be performing services. The request shall also
include a description of the services or duties that would be performed. The Company will respond
to any such request within ten (10) business days. The Company may elect to allow the performance
of such activity by Consultant at its sole discretion and with such conditions and restrictions as
it deems reasonable. The Company agrees to give any such request due consideration, taking into
account all information submitted by Consultant, and shall not unreasonably withhold its consent in
response to any such request.

Consultant agrees that the restrictions stated in this Section 13 are necessary to protect
Confidential Information the Company has provided to you in your confidential relationship as an
officer of the Company, and that which the Company will provide to you in your capacity as a
consultant.

During the term of this Agreement, Consultant shall not, directly or indirectly: (1) interfere with
the relationship of the Company or any affiliate of the Company, or endeavor to entice away from
the Company or any affiliate of the Company, any individual or entity who was or is a material
customer or material supplier of, or who has maintained a material business relationship with, the

4

 

Company or its affiliates; (2) establish (or take preliminary steps to establish) a business with,
or cause or attempt to cause others to establish (or take preliminary steps to establish) a
business with, any employee or agent of the Company or any of its affiliates, if such business
competes with or will compete with the Company or any of its affiliates; or (3) employ, engage as a
consultant or adviser, or solicit the employment, engagement as a consultant or adviser, of any
employee or agent of the Company or any of its affiliates, or cause or attempt to cause any
individual or entity to do any of the foregoing.

Consultant warrants this Agreement will not conflict with any of its existing obligations by
operation of law or any obligations which it may have under any other contract. Consultant
represents and warrants that he will not use any trade secrets or confidential information of any
third party in providing service to the Company under this Agreement, unless Consultant may do so
without Consultant or Company incurring any obligations (past or future) to such third party for
such work or any future applications thereof.

14. Full Disclosure and Ownership of Work Product: Consultant shall promptly and freely disclose
to the Company any and all conceptions, inventions, improvements, suggestions for improvements and
discoveries, whether patentable or not, which are conceived or made by Consultant solely or jointly
with another or others during the term of this Agreement and which are related to Consultant’s work
for the Company or which Consultant conceives as a result of the services rendered to the Company
and Consultant hereby assigns, and agrees to assign, all interest therein to the Company or its
nominee. Consultant understands and agrees that all copyrights, patents, trademarks, trade secrets
or other intellectual property rights associated with any ideas, concepts, techniques, inventions,
processes, or works of authorship developed or created by Consultant or its personnel during the
course of performing the Company’s work (collectively, the “Work Product”) shall belong exclusively
to the Company and shall be considered a work made for hire for the Company within the meaning of
Title 17 of the US Code. Consultant automatically assigns at the time of creation of the Work
Product, without any requirement of further consideration, any and all rights, title, or interest
it or they may have in such Work Product, including any patents, copyrights, or any other
intellectual property rights pertaining thereto. Upon the request of the Company, Consultant shall
take such further actions including execution and delivery of instruments of conveyance which the
Company shall deem necessary to be executed in order to apply for and obtain patents, copyrights,
or other intellectual property protection in the United States or any foreign country, or to
otherwise protect the Company’s interest therein.

15. Pre-existing Materials: Consultant may include in the Work Product pre-existing work or
materials only if either they are provided by Company or if they are owned or licensable without
restriction by Consultant. To the extent that pre-existing work or materials owned or licensed by
Consultant are included in the Work Product, Consultant shall identify any such work or materials
in writing prior to commencement of the services involving such work or materials. Consultant
grants to Company (as an exception to the transfer and assignment provided in Section 14) an
irrevocable, non-exclusive, world-wide, royalty-free right and license to use, execute, reproduce,
display, perform, and distribute (internally and externally) copies of, and prepare derivative
works based upon, such work and materials, and the right to authorize others to do any of the
foregoing. Company shall retain copyright to all Confidential Information. Consultant agrees to
protect,

5

 

defend, indemnify and hold harmless Company, its directors, officers, employees, agents,
representatives and subcontractors from any and all claims, liability, damages, losses, costs,
expenses, awards and reasonable attorney’s fees in connection with any claim, suit or cause of
action brought or asserted by any third party or entity for misappropriation or unauthorized use of
trade secrets or confidential information of such third party, arising out of or in connection with
Consultant’s furnishing of services under this Agreement.

16. Return of Property: Upon the expiration of the term of this Agreement, Consultant will
promptly deliver to the Company all Company information including drawings, manuals, information
stored on electronic media, letters, notes, notebooks, reports, customer lists, mailing lists and
all other material, models, parts and records of any kind whatsoever, including all extra copies
thereof, that were acquired from the Company or created in conjunction with the business of the
Company except those which may be necessary to complete work at the time of termination and which
shall be returned upon completion of said work.

17. Jurisdiction: This Agreement shall be governed by and construed in accordance with the laws of
the State of Texas, excluding its conflicts of law and choice of law statutes. The place of venue
for any disputes relating to this Agreement shall be Harris County, Texas.

18. Dispute Resolution: In the event of any dispute, claim, question, or disagreement (the
“dispute”) arising from or relating to this agreement or the breach thereof, the parties hereto
shall use their best efforts to settle the dispute by normal business discussions. Should such
discussions fail to resolve the dispute, any party may give the other a written notice of any
remaining dispute. The parties shall continue to negotiate with each other in good faith and,
recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to
both parties. If they do not reach such solution within a period of 30 days, then, upon notice by
either party to the other, all disputes, claims, questions, or differences (including issues
relating to the formation of the agreement and the validity of this arbitration clause) shall be
finally settled by binding arbitration administered by the American Arbitration Association (“AAA”)
in accordance with the provisions of its Rules for Resolution of Employment Disputes, as well as
the Federal Rules of Civil Procedure and the Federal Rules of Evidence, and judgment on the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

The arbitration Panel shall consist of a single arbitrator, unless otherwise agreed to by the
parties. The place of arbitration shall be Houston, Texas. If the parties are not able to decide
upon a neutral third party arbitrator within thirty (30) days of the request for arbitration, then
the AAA shall select an arbitrator having at least twenty (20) years of experience in commercial
matters. All proceedings will be conducted in English. The parties agree to hold the entirety of
the arbitration proceedings, including knowledge of the existence of any dispute or controversy,
completely confidential except for such disclosures as might be required by law.

This arbitration agreement does not limit or affect the right of either Party to seek from any
court having jurisdiction any interim, interlocutory, or provisional relief that is necessary to
protect the rights or property of that party. Alternatively, either Party may apply to the AAA
pursuant to the AAA Optional Rules for Emergency Measures seeking injunctive relief until the
arbitration award is rendered or the controversy is otherwise resolved.

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19. Nonwaiver: The failure of one party to insist upon or enforce, in any instance, strict
performance by the other party of any of the terms of this Agreement shall not be construed as a
waiver or relinquishment to any extent of its right to assert or rely upon such terms or rights on
any future occasion.

20. Notice: All notices or other communications to be given pursuant to this Agreement must be in
writing and may be given or served by ordinary mail, telex or personal delivery to the addresses
first written above. Notices shall be effective upon receipt by the party notified. By written
notice to the other, either party may change the address to which such notices or communications
are to be sent.

21. Severability: If any of the terms and conditions of this Agreement are held by any court of
competent jurisdiction to contravene or to be invalid under the laws of any political body having
jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate
the entire Agreement, but, instead, the Agreement shall be construed as if not containing the
particular provision or provisions held to be invalid, the rights and obligations of the parties
shall be construed and enforced accordingly, and this Agreement shall thereupon remain in full
force and effect. The parties agree to cooperate in any revision of the Agreement which may be
necessary to meet the requirements of law.

22. Non-Assignability: This Agreement is personal to Consultant and without the prior written
consent of the Company, all services hereunder shall be performed (i) by Consultant personally and
(ii) in accordance with the highest professional standards of workmanship. Consultant shall not,
in whole or in part, assign or subcontract any of the services to be performed hereunder without
the prior written consent of the Company other than a corporation, limited liability company,
family limited partnership, or other similar entity owned entirely by Consultant and/or members of
his family. Notwithstanding the foregoing, no permitted or purported assignment of this Agreement
or any of the rights or obligations hereof by Consultant shall relieve Consultant of his
obligations under this Agreement (including, but not limited to Consultant’s obligation to
personally perform all services hereunder) and, upon any such permitted or purported assignment,
the representations, warranties, covenants and agreements contained in this Agreement shall be
deemed to have been made by Consultant’s assignee as well as by Consultant. In the event of such
assignment, the Company may terminate this Agreement immediately without any further liability
hereunder.

23. Indemnity and Insurance: Consultant agrees, to the extent of its simple or gross negligence or
willful misconduct, to protect, defend, indemnify and hold harmless Company, its directors,
officers, employees, agents, representatives and subcontractors from any and all claims,
liability, damages, losses, costs, expenses, awards and reasonable attorney’s fees in connection
with any claim, suit or cause of action brought or asserted by any person or entity for personal
injury, death or property damage, arising out of or in connection with performance of the services
under this Agreement. This indemnity shall be binding upon the successors and heirs of Consultant.

7

 

24. Force Majeure: Neither party shall be considered to be in default in the performance of its
obligations under this Agreement, to the extent that the performance of any such obligation is
prevented or delayed by any cause, which is beyond the reasonable control of the affected party.

25. Consequential Damages: Neither party shall be liable to the other for any indirect, special,
punitive, exemplary or consequential damages, including, but not limited to, damages for lost
production, lost revenue, lost product, lost profits, lost business or business interruptions
REGARDLESS OF THE SOLE, JOINT AND/OR CONCURRENT NEGLIGENCE OF EITHER PARTY, AND EACH PARTY HEREBY
RELEASES THE OTHER IN THIS REGARD.

26. Entire Agreement: This Agreement, including Schedule A, supersedes all previous oral and
written agreements and constitutes the entire Agreement between Consultant and the Company with
respect to the subject matter hereof and may only be amended by mutual written consent of both
parties hereto. To the extent the terms and conditions of this Agreement are in conflict with any
terms or conditions in any other document, the terms and conditions of this Agreement shall
control.

8

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Baker Hughes Oilfield Operations, Inc.
	 
	 	 	 	 	 	 	 	 
	David H. Barr

	 	 	 	By:
	 	/s/Peter A. Ragauss
	 	 
	 

	 	 	 	 	 	 	 	 
	David H. Barr	 	 	 	Peter A. Ragauss	 	 
	 	 	 	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	February 25, 2009	 	 	 	February 25, 2009	 	 
	Date	 	 	 	Date	 	 

9

 

DAVID H. BARR

SCHEDULE A

	1.	 	David H. Barr
	 
	 	 	35 Southgate, The Woodlands, Texas 77380

Email:

Phone:
	 
	2.	 	Consultant shall be compensated for performing Services as follows:
	 
	 	 	The Consultant’s rate shall be $39,500 per month, inclusive of days worked as well as for
international in-transit travel time. Travel expenses will be reimbursed according the
terms of this Agreement.
	 
	3.	 	Consultant shall send all required invoices and notices to Company at the following address:
	 
	 	 	Attention: Tina Payne

2929 Allen Parkway

Ste 2100

Houston, Texas 77019

Telephone no. 713-439-8332

E-mail: Tina.Payne@bakerhughes.com
	 
	4.	 	The Services to be performed by Consultant under this Agreement are as follows:
	 
	 	 	Management and business development consulting services.

10

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