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                                                                   EXHIBIT 10.50

                            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 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 Shares of Restricted Stock
      shall not lapse and the number of Shares of Restricted Stock 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 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 Shares of Restricted Stock 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 Shares of Restricted Stock 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 Shares of
      the Restricted Stock after the application of the previous provisions of
      this Section 1.3 shall not lapse and such Shares of Restricted Stock 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, 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 Shares of
      Restricted Stock or the lapse of any Forfeiture Restrictions results in
      income to you for federal, state or local 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 the Shares awarded
      hereby 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 Restricted 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 Shares of
      Restricted Stock 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.    RIGHTS REGARDING DISTRIBUTIONS MADE BY THE COMPANY DURING THE RESTRICTED
      PERIOD. During the Restricted Period, (a) any securities of the Company
      distributed by the Company in respect of the Shares of Restricted Stock
      will be evidenced by entries in the appropriate securities register of the
      Company reflecting that such securities of the Company, if any, have been
      issued in your name (the "Retained Company Securities") and (b) any
      securities of any company other than the Company or

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      any other property (other than regular cash dividends) distributed by the
      Company in respect of the Shares of Restricted Stock will be evidenced in
      your name by such certificates or in such other manner as the Company
      determines (the "Retained Other Securities and Property") and shall bear a
      restrictive legend to the effect that ownership of such Retained Other
      Securities and Property and the enjoyment of all rights appurtenant
      thereto, are subject to the restrictions, terms, and conditions provided
      in the Plan, the Agreement and these Terms and Conditions. The Retained
      Company Securities and the Retained Other Securities and Property
      (collectively, the "Retained Distributions") shall be subject to the same
      restrictions, terms and conditions as are applicable to the Shares of
      Restricted Stock.

7.    RIGHTS WITH RESPECT TO SHARES OF RESTRICTED STOCK AND RETAINED
      DISTRIBUTIONS DURING RESTRICTED PERIOD. You shall have the right to vote
      the Shares of Restricted Stock awarded to you and to receive and retain
      all regular cash dividends, and to exercise all other rights, powers and
      privileges of a holder of the Common Stock, with respect to such Shares of
      Restricted Stock, with the exception that (a) you shall not be entitled to
      delivery of a stock certificate or certificates representing such Shares
      of Restricted Stock until the Forfeiture Restrictions applicable thereto
      shall have lapsed, (b) the Company shall retain custody of all Retained
      Distributions made or declared with respect to the Shares of Restricted
      Stock until such time, if ever, as the Forfeiture Restrictions applicable
      to the Shares of Restricted Stock with respect to which such Retained
      Distributions shall have been made, paid, or declared shall have lapsed,
      and such Retained Distributions shall not bear interest or be segregated
      in separate accounts and (c) you may not sell, assign, transfer, pledge,
      exchange, encumber, or dispose of the Shares of Restricted Stock or any
      Retained Distributions during the Restricted Period. During the Restricted
      Period, the Company may, in its sole discretion, issue certificates for
      some or all of the Shares of Restricted Stock, in which case all such
      certificates shall be delivered to the Corporate Secretary of the Company
      or to such other depository as may be designated by the Committee as a
      depository for safekeeping until the forfeiture of such Shares of
      Restricted Stock occurs or the Forfeiture Restrictions lapse. When
      requested by the Company, you shall execute such stock powers or other
      instruments of assignment as the Company requests relating to transfer to
      the Company of all or any portion of such Shares of Restricted Stock and
      any Retained Distributions that are forfeited in accordance with the Plan,
      the Agreement and these Terms and Conditions.

8.    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.

9.    SECTION 83(B) ELECTION. You shall not exercise the election permitted
      under Section 83(b) of the Code with respect to the Shares of Restricted
      Stock without the written approval of the Chief Financial Officer of the
      Company.

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10.   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.

11.   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.

12.   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 the Shares of an appropriate legend restricting resale or
      other transfer of the Shares except in accordance with such Act and all
      applicable rules thereunder.

13.   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.

14.   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 10.51

                            BAKER HUGHES INCORPORATED

                      RESTRICTED STOCK UNIT AWARD AGREEMENT

                                     AWARDEE

       DATE OF AWARD:

       NUMBER OF RESTRICTED STOCK UNITS:

                         AWARD OF RESTRICTED STOCK UNITS

      The Compensation Committee (the "Committee") of the Board of Directors of
Baker Hughes Incorporated, a Delaware corporation (the "Company"), pursuant to
the Baker Hughes Incorporated [2002 Employee Long-Term Incentive Plan/2002
Director & Officer Long-Term Incentive Plan] (the "Plan"), hereby awards to you,
the above-named awardee, effective as of the Date of Award set forth above (the
"Date of Award"), that number of restricted stock units set forth above (the
"Restricted Stock Units"), on the following terms and conditions:

      The Restricted Stock Units that are awarded hereby to you shall be subject
to the prohibitions and restrictions set forth herein with respect to the sale
or other disposition of such Restricted Stock Units and the obligation to
forfeit and surrender such Restricted Stock Units to the Company (the
"Forfeiture Restrictions"). The Forfeiture Restrictions shall lapse as to the
Restricted Stock Units that are awarded hereby in accordance with the following
schedule provided that your employment with the Company and its Affiliates has
not terminated prior to the applicable lapse date:

      (a)   on the first anniversary of the Date of Award, the Forfeiture
            Restrictions shall lapse as to one-third of the Restricted Stock
            Units subject to this Agreement; and

      (b)   on each succeeding anniversary of the Date of Award, the Forfeiture
            Restrictions shall lapse as to an additional one-third of the
            Restricted Stock Units subject to this Agreement, so that on the
            third anniversary of the Date of Award the Forfeiture Restrictions
            shall lapse as to all of the Restricted Stock Units subject to this
            Agreement.

If a Change in Control of the Company occurs or your employment with the Company
and all Affiliates terminates before the third anniversary of the Date of Award,
your rights to the Restricted Stock Units under this Agreement will be
determined as provided in the attached Terms and Conditions of Award Agreements
(dated ________________) (the "Terms and Conditions").

      Upon the lapse of the Forfeiture Restrictions applicable to a Restricted
Stock Unit that is awarded hereby, the Company shall issue to you one share of
the Company's Common Stock, $1.00 par value per share (the "Common Stock"), in
exchange for such Restricted Stock Unit and thereafter you shall have no further
rights with respect to such Restricted Stock Unit. The Company shall cause to be
delivered to you a stock certificate representing those shares of the Common
Stock issued in exchange for Restricted Stock Units awarded hereby, and such
shares of the Common Stock shall be transferable by you (except to the extent
that any proposed transfer would, in the opinion of counsel satisfactory to the
Company, constitute a violation of applicable securities law).

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      If during the period you hold any Restricted Stock Units awarded hereby
the Company pays a dividend in cash with respect to the outstanding shares of
the Common Stock (a "Cash Dividend"), then the Company will pay in cash to you,
as soon as administratively practicable after the payment of such Cash Dividend,
an amount equal to the product of (a) the Restricted Stock Units awarded hereby
that have not been forfeited to the Company or exchanged by the Company for
shares of the Common Stock and (b) the amount of the Cash Dividend paid per
share of the Common Stock.

      If during the period you hold any Restricted Stock Units awarded hereby
the Company pays a dividend in shares of the Common Stock with respect to the
outstanding shares of the Common Stock, then the Company will increase the
Restricted Stock Units awarded hereby that have not then been exchanged by the
Company for shares of the Common Stock by an amount equal to the product of (a)
the Restricted Stock Units awarded hereby that have not been forfeited to the
Company or exchanged by the Company for shares of the Common Stock and (b) the
number of shares of the Common Stock paid by the Company per share of the Common
Stock (collectively, the "Stock Dividend Restricted Stock Units"). Each Stock
Dividend Restricted Stock Unit will be subject to same Forfeiture Restrictions
and other restrictions, limitations and conditions applicable to the Restricted
Stock Unit for which such Stock Dividend Restricted Stock Unit was awarded and
will be exchanged for shares of the Common Stock at the same time and on the
same basis as such Restricted Stock Unit.

      The Restricted Stock Units may not be sold, assigned, pledged, exchanged,
hypothecated or otherwise transferred, encumbered or disposed of (other than by
will or the applicable laws of descent and distribution). Any such attempted
sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or
disposition in violation of this Agreement shall be void and the Company shall
not be bound thereby.

      Any shares of the Common Stock issued to you in exchange for Restricted
Stock Units awarded hereby may not be sold or otherwise disposed of in any
manner that would constitute a violation of any applicable securities laws. You
also agree that (a) the Company may refuse to cause the transfer of any such
shares of the Common Stock to be registered on the stock register of the Company
if such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law and (b) the
Company may give related instructions to the transfer agent, if any, to stop
registration of the transfer of such shares of the Common Stock.

      The shares of Common Stock that may be issued under the Plan are
registered with the Securities and Exchange Commission under a Registration
Statement on Form S-8. A Prospectus describing the Plan and the shares of Common
Stock can be found on the Baker Hughes Interchange at
http://interchange/legal/Benefit%20Plans/benefit.htm.

      Capitalized terms that are not defined herein shall have the meaning
ascribed to such terms in the Plan or the Terms and Conditions.

      In accepting the award of Restricted Stock Units set forth in this
Agreement you accept and agree to be bound by all the terms and conditions of
the Plan, this Agreement and the Terms and Conditions.

                            BAKER HUGHES INCORPORATED

                            /s/ Chad C. Deaton
                            ------------------------------------------
                            Chad C. Deaton -- Chairman & CEO

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