Document:

Second Consent and Waiver dated May 27, 2005

 Exhibit 4.2 
  

SECOND CONSENT AND WAIVER UNDER THE SENIOR UNSECURED 
 TERM LOAN AGREEMENT 
  
 Dated as of May 27, 2005 
  
 SECOND CONSENT AND
WAIVER UNDER THE SENIOR UNSECURED TERM LOAN AGREEMENT, dated as of May 27, 2005 (this “Consent”), among DRESSER, INC., a Delaware corporation (the “Borrower”), the Guarantors (as defined below), the
Lenders listed on the signature pages hereto and MORGAN STANLEY SENIOR FUNDING, INC. (“MSSF”), as Administrative Agent. 
  
 WITNESSETH: 
  
 WHEREAS, the Borrower, the Guarantors, the Lenders party thereto and the Agents have entered into a Senior Unsecured Term
Loan Agreement dated as of March 1, 2004, as modified by the Consent and Waiver dated as of March 18, 2005 (the “Term Loan Agreement”; capitalized terms used herein but not defined shall be used herein as defined in the Term
Loan Agreement). 
  
 WHEREAS, the Borrower desires to modify the
Term Loan Agreement in certain respects and to waive certain Defaults and Events of Default under the Credit Agreement, in each case as provided herein; 
  
 WHEREAS, the Required Lenders have agreed, subject to the terms and conditions hereinafter set forth, to modify the Term Loan Agreement in response to the
Borrower’s request as set forth below; 
  
 NOW, THEREFORE, in
consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows: 
  
 SECTION 1. Consent. Notwithstanding anything to the contrary set forth in the Term Loan Agreement, the Required
Lenders hereby consent to (a) the extension of the delivery date specified for the audited financial statements for the Fiscal Year ended December 31, 2004 and the other material with respect to such Fiscal Year required by Section 5.01(b) of the
Term Loan Agreement to no later than July 15, 2005 (the “10K Extended Delivery Date”), it being understood and agreed that if the Borrower fails to deliver such audited financial statements and other materials on or before
the 10K Extended Delivery Date, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding of at least 25% of the outstanding principal amount of the Senior Unsecured
Obligations pursuant to Section 6.01(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents and (b) the extension of the delivery date specified for the material required by Section
5.01(b) with respect to the fiscal quarter ended March 31, 2005 to no later than July 15, 2005 (the “10Q Extended Delivery Date”), it being understood and agreed that if the Borrower fails to deliver the materials required by
Section 5.01(b) with respect to the fiscal quarter ended March 31, 2005 by the 10Q Extended Delivery 

  

 
Date, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding of at least 25% of
the outstanding principal amount of the Senior Unsecured Obligations pursuant to Section 6.01(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents. Notwithstanding the foregoing,
it is further understood and agreed that the Borrower shall deliver to the Lenders all financial statements for the fiscal quarter ended March 31, 2005 that are provided to the “Lenders” under the Existing Credit Agreement at the same time
as such financial statements are delivered under the Existing Credit Agreement, and if the Borrower fails to do so, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding
of at least 25% of the outstanding principal amount of the Senior Unsecured Obligations pursuant to Section 6.01(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents. 

 
 SECTION 2. Waiver. The Lenders holding not less than a majority in
aggregate principal amount of the then outstanding Senior Unsecured Obligations hereby waive any Default or Event of Default in respect of the provisions of Sections 3.01(a)(iv), 3.01(c), 4.01(f), 4.01(g), 4.01(h), 4.01(j), 5.01(b) and 5.01(c) of
the Term Loan Agreement and any related or substantially comparable provision of any Loan Document, in each case consisting of, resulting from or relating in any respect to (i) the re-audit, revision or restatement of any financial statement
delivered prior to the date of this Consent and Waiver by the Borrower or any of its Subsidiaries (including, without limitation, any misstatement therein or in any certificate, representation or warranty relating thereto, or any error, defect or
deficiency in accounting procedures or in the application of accounting principles reflected thereby or relating thereto), (ii) any failure to deliver any such financial statement when or as required, except as required by Section 1 above, (iii) any
failure to comply with any obligation that became required to be performed or observed under any of such provisions by reason of the occurrence of any such Default or Event of Default or (iv) any misstatement as to the absence of any such Default or
Event of Default. 
  
 SECTION 3. Conditions to
Effectiveness. This Consent shall become effective, as of the first date set forth above, on the date (the “Effective Date”) when each of the conditions set forth in this Section 3 to this Consent shall have been
fulfilled to the satisfaction of the Administrative Agent. 
  
 (i) Execution of Counterparts. The Administrative Agent shall have received counterparts of this Consent, duly executed and delivered on behalf of each of (a) the Borrower and each Guarantor, (b) the
Administrative Agent and (c) the Required Lenders, or as to any of the foregoing parties, advice reasonably satisfactory to the Administrative Agent that each of the foregoing parties has executed a counterpart of this Consent. 
  
 (ii) Payment of Fees and Expenses. The Borrower shall
have paid, on or before May 31, 2005, (a) to the Administrative Agent, for the benefit of each Lender executing this Consent on or before May 27, 2005, a fee equal to 0.05% of the aggregate Commitments and Advances of each such Lender and (b) all
expenses (including the fees and expenses of Shearman & Sterling LLP) incurred in connection with the preparation, 

  

 2 

 
negotiation and execution of this Consent and other matters relating to the Term Loan Agreement from and after the last invoice to the extent invoiced.

  
 SECTION 4. Representations and Warranties. Each
Borrower hereby represents and warrants that as of the date hereof no Default has occurred and is continuing or would result from the effectiveness of this Consent. 
  
 SECTION 5. Reference to and Effect on the Transaction Documents. (a) On and after the effectiveness of this Consent,
each reference in the Term Loan Agreement to “hereunder”, “hereof” or words of like import referring to the Term Loan Agreement, and each reference in the other transaction documents to the “Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Term Loan Agreement, shall mean and be a reference to the Term Loan Agreement as modified by this Consent. 
  
 (b) The Term Loan Agreement, the Notes and each of the other
Loan Documents, as specifically amended by this Consent, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. 
  
 (c) The execution, delivery and effectiveness of this Consent shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 
  
 SECTION 6. Execution in Counterparts. This Consent may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an
executed counterpart of a signature page to this Consent by telecopier shall be effective as delivery of a manually executed counterpart of this Consent. 
  
 SECTION 7. Governing Law. This Consent shall be governed by, and construed in accordance with, the laws of the State of New York, and shall be
subject to the jurisdictional and service provisions of the Term Loan Agreement, as if this were a part of the Term Loan Agreement. 
  
 SECTION 8. Entire Agreement; Modification. This Consent constitutes the entire agreement of the parties hereto with respect to the subject matter
hereof, there being no other agreements or understandings, oral, written or otherwise, respecting such subject matter, any such agreement or understanding being superseded hereby, shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, and may not be amended, extended or otherwise modified, except in a writing executed in whole or in counterparts by each party hereto. 
  
 [Signatures follow.] 
  

 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Consent to be executed and delivered by their
respective authorized officers as of the day and year first above written. 
  

					
	 DRESSER, INC., as Borrower

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	 Executive Vice President and
 Chief Financial Officer

  

					
	THE GUARANTORS
	
	 DRESSER INTERNATIONAL, INC.

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	Executive Vice President
	
	 DRESSER RE, INC.

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	Executive Vice President
	
	 DRESSER RUSSIA, INC.

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	Executive Vice President
	
	 LVF HOLDING CORPORATION

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	Executive Vice President
	
	 DRESSER ENTECH, INC.

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	Executive Vice President
	
	 RING-O VALVE, INCORPORATED

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	Executive Vice President

  

					
	 DRESSER CHINA, INC.

		
	By:	 	/s/    JAMES A.
NATTIER        
	 	 	 Name:
	 	James A. Nattier
	 	 	 Title:
	 	Executive Vice President

  

					
	 MORGAN STANLEY SENIOR FUNDING, INC.,
as Administrative Agent

		
	By:	 	/s/    EUGENE
MARTIN        
	 	 	 Name:
	 	Eugene Martin
	 	 	 Title:
	 	Managing Director

  

					
	 MORGAN STANLEY & CO. INCORPORATED,
as Collateral Agent

		
	By:	 	/s/    EUGENE
MARTIN        
	 	 	 Name:
	 	Eugene Martin
	 	 	 Title:
	 	Managing Director

  

					
	LENDERS
	
	LANDMARK CDO LIMITED
		
	By:	 	 ALADDIN CAPITAL MANAGEMENT LLC,
 AS
MANAGER

	 	 	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    JOSEPH MORONEY        
	 	 	 Name:
	 	JOSEPH MORONEY
	 	 	Title:	 	DIRECTOR

  

					
	LENDERS
	
	 LANDMARK II CDO LIMITED

		
	By:	 	ALADDIN CAPITAL MANAGEMENT LLC
as MANAGER
	 	 	 [Print Name of Financial Institution]

			
	 By: 
	 	 	 	/s/    JOSEPH MORONEY        
	 	 	 Name:
	 	JOSEPH MORONEY
	 	 	 Title:
	 	DIRECTOR

  

					
	LENDERS
	
	 LANDMARK IV CDO LIMITED

		
	By:	 	ALADDIN CAPITAL MANAGEMENT LLC
as MANAGER
	 	 	 [Print Name of Financial Institution]

			
	 By: 
	 	 	 	/s/    JOSEPH MORONEY        
	 	 	 Name:
	 	JOSEPH MORONEY
	 	 	 Title:
	 	DIRECTOR

  

					
	LENDERS
	
	Centurion CDO II, Ltd.
		
	By:	 	American Express Asset Management Group, Inc. as Collateral Manager
	 	 	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    VINCENT P. PHAM        
	 	 	 Name:
	 	Vincent P. Pham
	 	 	 Title:
	 	Director-Operations

  

					
	LENDERS
	
	 Centurion CDO VI, Ltd.

		
	 By:
	 	American Express Asset Management Group, Inc. as Collateral Manager
	 	 	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    VINCENT P. PHAM        
	 	 	 Name:
	 	Vincent P. Pham
	 	 	 Title:
	 	Director-Operations

  

					
	LENDERS
	
	Sequils-Centurion V, Ltd.
		
	By:	 	American Express Asset Management Group, Inc. as Collateral Manager
	 	 	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    VINCENT P. PHAM        
	 	 	 Name:
	 	Vincent P. Pham
	 	 	 Title:
	 	Director-Operations

  

					
	LENDERS
	
	AMMC CDO IV, LIMITED
		
	By:	 	 American Money Management Corp.,
 as Collateral Manager

			
	By:	 	 	 	/s/    CHESTER M. ENG        
	 	 	 Name:
	 	Chester M. Eng
	 	 	 Title:
	 	Senior Vice President

  

					
	LENDERS
	
	AMMC CDO II, LIMITED
		
	By:	 	 American Money Management Corp.,
 as Collateral Manager

			
	By:	 	 	 	/s/    CHESTER M. ENG        
	 	 	 Name:
	 	Chester M. Eng
	 	 	 Title:
	 	Senior Vice President

  

					
	LENDERS
	
	ARES III CLO Ltd.
		
	By:	 	 ARES CLO Management LLC,
 Investment Manager

			
	By:	 	 	 	/s/    SETH J. BRUFSKY        
	 	 	 Name:
	 	SETH J. BRUFSKY
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	Ares IV CLO Ltd.
		
	By:	 	 Ares CLO Management IV, L.P.,
 Investment
Manager

		
	By:	 	 Ares CLO GP IV, LLC,
 Its Managing
Member

			
	By:	 	 	 	/s/    SETH J. BRUFSKY        
	 	 	 Name:
	 	SETH J. BRUFSKY
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	Ares VI CLO Ltd.
		
	By:	 	 Ares CLO Management VI, L.P.,
 Investment
Manager

		
	By:	 	 Ares CLO GP VI, LLC,
 Its Managing
Member

			
	By: 	 	 	 	/s/    SETH J. BRUFSKY        
	 	 	 Name:
	 	SETH J. BRUFSKY
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	 Ares VIII CLO Ltd.

		
	By:	 	 Ares CLO Management VIII, L.P.,
 Investment Manager

		
	By:	 	 Ares CLO GP VIII, LLC,
 Its General Partner

			
	By:	 	 	 	/s/    SETH J. BRUFSKY        
	 	 	 Name:
	 	SETH J. BRUFSKY
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	THE TRAVELERS INSURANCE COMPANY
	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    ALLEN CANTRELL        
	 	 	 Name:
	 	ALLEN CANTRELL
	 	 	 Title:
	 	INVESTMENT OFFICER

  

					
	LENDERS
	
	TRS CALLISTO LLC
			
	By:	 	 	 	/s/    ALICE L. WAGNER        
	 	 	 Name:
	 	Alice L. Wagner
	 	 	 Title:
	 	Vice President

  

					
	LENDERS
	
	 Flagship CLO 2001-1

		
	By:	 	Flagship Capital Management, Inc.
			
	 By: 
	 	 	 	/s/    COLLEEN CUNNIFFE        
	 	 	 Name:
	 	Colleen Cunniffe
	 	 	 Title:
	 	Director

  

					
	LENDERS
	
	 Flagship CLO II

		
	By:	 	Flagship Capital Management, Inc.
			
	 By: 
	 	 	 	/s/    COLLEEN CUNNIFFE        
	 	 	 Name:
	 	Colleen Cunniffe
	 	 	 Title:
	 	Director

  

					
	LENDERS
	
	Franklin CLO I, Limited
	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    DAVID ARDINI        
	 	 	 Name:
	 	DAVID ARDINI
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	Franklin CLO II, Limited
	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    DAVID ARDINI        
	 	 	 Name:
	 	DAVID ARDINI
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	Franklin CLO III, Limited
	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    DAVID ARDINI        
	 	 	 Name:
	 	DAVID ARDINI
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	Franklin CLO IV, Limited
	[Print Name of Financial Institution]
			
	By:	 	 	 	/s/    DAVID ARDINI        
	 	 	 Name:
	 	DAVID ARDINI
	 	 	 Title:
	 	VICE PRESIDENT

  

					
	LENDERS
	
	FRANKLIN FLOATING RATE DAILY ACCESS FUND
	 [Print Name of Financial Institution]

			
	 By:
	 	 	 	/s/    RICHARD HSU        
	 	 	 Name:
	 	Richard Hsu
	 	 	 Title:
	 	Vice President

  

					
	LENDERS
	
	 Franklin Floating Rate Master Series

	[Print Name of Financial Institution]
			
	 By:
	 	 	 	/s/    RICHARD HSU        
	 	 	 Name:
	 	Richard Hsu
	 	 	 Title:
	 	Vice President

  

					
	LENDERS
	
	 Franklin Floating Rate Trust

	[Print Name of Financial Institution]
			
	 By:
	 	 	 	/s/    RICHARD HSU        
	 	 	 Name:
	 	Richard Hsu
	 	 	 Title:
	 	Vice President

  

			
	LENDERS
	
	Floating Rate Income Strategies Fund, Inc.
		
	By: 	 	/s/    OMAR JAMA        
	 	 	Omar Jama
	 	 	Authorized Signatory
	
	SENIOR HIGH INCOME PORTFOLIO, INC.
		
	By: 	 	/s/    OMAR JAMA        
	 	 	Omar Jama
	 	 	Authorized Signatory
	
	DEBT STRATEGIES FUND, INC.
		
	By: 	 	/s/    OMAR JAMA        
	 	 	Omar Jama
	 	 	Authorized Signatory
	
	 MERRILL LYNCH GLOBAL INVESTMENT SERIES:
 INCOME STRATEGIES PORTFOLIO

		
	By:	 	 Merrill Lynch Investment Managers, L.P.
 as Investment Advisor

		
	By: 	 	/s/    OMAR JAMA        
	 	 	Omar Jama
	 	 	Authorized Signatory

  

					
	LENDERS
	
	Venture III CDO Limited
		
	 By
	 	 its investment advisor, MJX Asset Management LLC

			
	By:	 	 	 	/s/    KENNETH OSTMANN        
	 	 	 Name:
	 	Kenneth Ostmann
	 	 	 Title:
	 	Director

  

					
	LENDERS
	
	NYLIM Flatiron CLO 2003-1 Ltd.
		
	 By:
	 	 New York Life Investment Management LLC,
 as Collateral Manager and Attorney-in-Fact

			
	By:	 	 	 	/s/    ROBERT H. DIAL        
	 	 	 Name:
	 	Robert H. Dial
	 	 	 Title:
	 	Managing Director

  

					
	NYLIM Flatiron CLO 2004-1 Ltd.
		
	 By:
	 	 New York Life Investment Management LLC,
 as Collateral Manager and Attorney-in-Fact

			
	By:	 	 	 	/s/    ROBERT H. DIAL        
	 	 	 Name:
	 	Robert H. Dial
	 	 	 Title:
	 	Managing Director

  

					
	NYLIM High Yield CDO 2001 Ltd.
		
	 By:
	 	 New York Life Investment Management LLC,

			
	By:	 	 	 	/s/    ROBERT H. DIAL        
	 	 	 Name:
	 	Robert H. Dial
	 	 	 Title:
	 	Managing Director

  

					
	New York Life Insurance and Annuity Corporation
		
	 By:
	 	 New York Life Investment Management LLC,
 its Investment Manager

			
	By:	 	 	 	/s/    ROBERT H. DIAL        
	 	 	 Name:
	 	Robert H. Dial
	 	 	 Title:
	 	Managing Director

  

					
	New York Life Insurance Company
			
	By:	 	 	 	/s/    ROBERT H. DIAL        
	 	 	 Name:
	 	Robert H. Dial
	 	 	 Title:
	 	Vice President

  

			
	LENDERS
	
	Bedford CDO, Limited
		
	By:	 	Pacific Investment Management Company LLC, as its Investment Advisor
		
	 By:
	 	/s/    MOHAN V.
PHANSALKAR        
	 	 	 Mohan V. Phansalkar
 Managing Director

  

			
	LENDERS
	
	EQ Advisors Trust EQ/High Yield Portfolio
		
	 By:
	 	Pacific Investment Management Company LLC, as its Investment Advisor
		
	By:	 	/s/    MOHAN V.
PHANSALKAR        
	 	 	Mohan V. Phansalkar
	 	 	Managing Director

  

					
	LENDERS
	
	PIMCO Floating Rate Income Fund
		
	By:	 	Pacific Investment Management Company LLC, as its Investment Advisor, acting through Investors Fiduciary Trust Company in the Nominee Name of IFTCO
			
	 By:
	 	 	 	/s/    MOHAN V.
PHANSALKAR        
	 	 	 	 	Mohan V. Phansalkar
	 	 	 	 	Managing Director

  

					
	LENDERS
	
	SEQUILS-MAGNUM, LTD.
		
	By:	 	Pacific Investment Management Company LLC, as its Investment Advisor
			
	 By:
	 	 	 	/s/    MOHAN V.
PHANSALKAR        
	 	 	 	 	Mohan V. Phansalkar
	 	 	 	 	Managing Director

  

													
	 	 	 	 	 	 	LENDERS
			
	 	 	 	 	OAK HILL SECURITIES FUND II, L.P.
					
	 	 	 	 	 	 	 By:
	 	 Oak Hill Securities GenPar II, L.P.
 its General Partner

					
	 	 	 	 	 	 	 By:
	 	 Oak Hill Securities MGP II, Inc.,
 its General Partner

							
	 	 	 	 	 	 	 	 	By:	 	 	 	/s/    SCOTT D. KRASE        
	 	 	 	 	 	 	 	 	 	 	 Name:
	 	Scott D. Krase
	 	 	 	 	 	 	 	 	 	 	 Title:
	 	Vice President
			
	 	 	 	 	OAK HILL SECURITIES FUND, L.P.
					
	 	 	 	 	 	 	 By:
	 	 Oak Hill Securities GenPar, L.P.
 its General Partner

					
	 	 	 	 	 	 	 By:
	 	 Oak Hill Securities MGP, Inc.,
 its General Partner

							
	 	 	 	 	 	 	 	 	By:	 	 	 	/s/    SCOTT D. KRASE        
	 	 	 	 	 	 	 	 	 	 	 Name:
	 	Scott D. Krase
	 	 	 	 	 	 	 	 	 	 	 Title:
	 	Vice President
			
	 	 	 	 	OAK HILL CREDIT PARTNERS I, LIMITED
					
	 	 	 	 	 	 	 By:
	 	 Oak Hill CLO Management I, LLC
 As Investment Manager

							
	 	 	 	 	 	 	 	 	By:	 	 	 	/s/    SCOTT D. KRASE        
	 	 	 	 	 	 	 	 	 	 	 Name:
	 	Scott D. Krase
	 	 	 	 	 	 	 	 	 	 	 Title:
	 	Authorized Person
			
	 	 	 	 	OAK HILL CREDIT PARTNERS III, LIMITED
					
	 	 	 	 	 	 	 By:
	 	 Oak Hill CLO Management III, LLC
 As Investment Manager

							
	 	 	 	 	 	 	 	 	By:	 	 	 	/s/    SCOTT D. KRASE        
	 	 	 	 	 	 	 	 	 	 	 Name:
	 	Scott D. Krase
	 	 	 	 	 	 	 	 	 	 	 Title:
	 	Authorized Person

  

					
	LENDERS
	
	BOSTON HARBOR CLO 2004-1, LTD.
			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V. P.

  

					
	LENDERS
	
	PUTNAM DIVERSIFIED INCOME TRUST
			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	PUTNAM FLOATING RATE INCOME FUND
			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	PUTNAM HIGH YIELD ADVANTAGE FUND
			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	PUTNAM HIGH YIELD TRUST
			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	PUTNAM MASTER INCOME TRUST
			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	 PUTNAM MASTER INTERMEDIATE INCOME TRUST

			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	 PUTNAM PREMIER INCOME TRUST

			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	 PUTNAM VARIABLE TRUST – PVT DIVERSIFIED INCOME FUND

			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	 PUTNAM VARIABLE TRUST – PVT HIGH YIELD FUND

			
	By:	 	 	 	/s/    BETH MAZOR        
	 	 	 Name:
	 	Beth Mazor
	 	 	 Title:
	 	V.P.

  

					
	LENDERS
	
	47th Street Funding II Inc.
	 [Print Name of Financial Institution]

			
	By:	 	 	 	/s/    JONATHAN WETSS        
	 	 	Name:	 	Jonathan Wetss
	 	 	Title:	 	Authorized Signatory

  

  

					
	LENDERS
	
	Sankaty High Yield Partners II, L.P.
	 [Print Name of Financial Institution]

			
	By:	 	 	 	/s/    DIANE J. EXTER        
	 	 	Name:	 	DIANE J. EXTER
	 	 	Title:	 	 MANAGING DIRECTOR
 PORTFOLIO MANAGER

  

  

					
	LENDERS
	
	 Sankaty Advisors, LLC as Collateral
 Manager for AVERY POINT CLO,
 LTD., as Term Lender

	 [Print Name of Financial Institution]

			
	By:	 	 	 	/s/    DIANE J. EXTER        
	 	 	Name:	 	DIANE J. EXTER
	 	 	Title:	 	 MANAGING DIRECTOR
 PORTFOLIO MANAGER

  

  

					
	LENDERS
	
	 Sankaty Advisors, LLC as Collateral
 Manager for Prospect Funding I,
 LLC as Term Lender

	 [Print Name of Financial Institution]

			
	By:	 	 	 	/s/    DIANE J. EXTER        
	 	 	Name:	 	DIANE J. EXTER
	 	 	Title:	 	 MANAGING DIRECTOR
 PORTFOLIO MANAGER

  

  

					
	LENDERS
	
	HARBOUR TOWN FUNDING LLC
			
	By:	 	 	 	/s/    MEREDITH J.
KOSLICK        
	 	 	Name:	 	Meredith J. Koslick
	 	 	Title:	 	Assistant Vice President

  

  

					
	LENDERS
	
	JUPITER LOAN FUNDING LLC
			
	By:	 	 	 	/s/    MEREDITH J.
KOSLICK        
	 	 	Name:	 	Meredith J. Koslick
	 	 	Title:	 	Assistant Vice President

  

  

					
	LENDERS
	
	WINGED FOOT FUNDING TRUST
			
	By:	 	 	 	/s/    MEREDITH J.
KOSLICK        
	 	 	Name:	 	Meredith J. Koslick
	 	 	Title:	 	Authorized Agent

  

  

					
	LENDERS
	
	 CREDIT SUISSE, CAYMAN ISLANDS BRANCH
 (fka CREDIT SUISSE FIRST BOSTON,
 acting through its Cayman Islands Branch)

			
	By:	 	 	 	/s/    S. WILLIAM FOX        
	 	 	Name:	 	S. WILLIAM FOX
	 	 	Title:	 	DIRECTOR
			
	By:	 	 	 	/s/    DAVID DODD        
	 	 	Name:	 	DAVID DODD
	 	 	Title:	 	VICE PRESIDENT

  

  

					
	LENDERS
	
	 AIMCO CDO Series 2000-A

	 [Print Name of Financial Institution]

			
	By:	 	 	 	/s/    ROBERT B. BODETT        
	 	 	Name:	 	ROBERT B. BODETT
	 	 	Title:	 	Authorized Signatory
			
	By:	 	 	 	/s/    JERRY D. ZINKULA        
	 	 	Name:	 	JERRY D. ZINKULA
	 	 	Title:	 	Authorized SignatoryEmployment Agreement with Patrick M. Murray dated May 25, 2005

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”), dated this 25th day of May, 2005, but effective as of December 20, 2004 (the “Effective Date”), is entered into by and between Dresser, Inc., a Delaware corporation (“Employer”) and Patrick M.
Murray (“Employee”). 
  
 WITNESSETH: 

 
 WHEREAS, pursuant to a resolution adopted at its December 18, 2003
meeting, the Board of Directors of Employer approved certain Compensation (as defined therein) arrangements for Employee in his capacity as Chairman of the Board (the “Compensation Resolution”); 
  
 WHEREAS, Employer and Employee now desire to enter into this Agreement
by which Employer shall hire Employee as Employer’s Chief Executive Officer. 
  
 NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, Employer and Employee agree as follows: 
  

	ARTICLE 1:	EMPLOYMENT AND DUTIES: 

  
 1.1 Employer agrees to employ Employee, and Employee agrees to be employed by Employer, beginning as of the Effective Date and continuing until such time
as his successor is elected and qualified or his earlier resignation or removal, subject to any termination of such employment as set forth in Article 3, and subject to other rights and obligations set forth in the terms and conditions of this
Agreement. 
  
 1.2 Beginning as of the Effective Date, Employee
shall be employed as the Chief Executive Officer of Employer. Employer shall use its best efforts to cause Employee to continue to be elected or appointed as a member of the Board of Directors of Employer (the “Board”) for so long as this
Agreement is in effect. For so long as Employee is a member of the Board, Employee will also be Chairman of the Board. As Chief Executive Officer, Employee will report directly to the Board, and Employee’s duties will include such functions and
operations consistent with Employee’s title and assigned him from time to time by the Board. Employee agrees to perform such functions and operations diligently and to the best of Employee’s abilities as well as such additional or
different duties and services appropriate to such positions which Employee from time to time may be reasonably directed to perform by the Board. 
  
 1.3 Employee shall at all times comply with and be subject to such policies and procedures as Employer may establish from time to time, including, without
limitation, Employer’s Code of Business Conduct (the “Code of Business Conduct”), which at any time during the period of his employment by Employer have been furnished in writing to Employee. 
  
 1.4 Employee shall, during the period of Employee’s employment by
Employer, devote Employee’s full business time, energy, and best efforts to the business and affairs of Employer. Employee may not engage, directly or indirectly, in any other business, investment, 

  

 
or activity that materially interferes with Employee’s performance of Employee’s duties hereunder or is contrary to the interest of Employer or any
of Dresser, Ltd.’s current or future affiliated subsidiaries (each a “Dresser Entity” or, collectively, the “Dresser Entities”) or requires any significant portion of Employee’s business time. The foregoing
notwithstanding, the parties recognize and agree that Employee may engage in passive personal investments and other business activities which do not conflict with the business and affairs of the Dresser Entities or materially interfere with
Employee’s performance of his duties hereunder. In addition, Employee may serve on any corporate, civic, or charitable boards of directors, provided that such service is not otherwise a violation of any other provision of this Agreement and he
first obtain approval to serve on any for-profit corporate boards in accordance with Employer’s policies and procedures regarding such service to the extent previously furnished in writing to Employee. Employee shall be permitted to retain any
compensation received for approved service on any unaffiliated corporation’s board of directors. 
  
 1.5 Employee acknowledges and agrees that Employee owes a fiduciary duty of loyalty, fidelity, and allegiance to act at all times in the best interests of
Employer and the other Dresser Entities and to do no act which would, directly or indirectly, injure any such entity’s business, interests, or reputation. It is agreed that any direct or indirect interest in, connection with, or benefit from
any outside activities, particularly commercial activities, which interest might in any way adversely affect Employer, or any other Dresser Entity, involves a possible conflict of interest. In keeping with Employee’s fiduciary duties to
Employer, Employee agrees that Employee shall not knowingly become involved in a conflict of interest with Employer or any Dresser Entity, or upon discovery thereof, allow such a conflict to continue. Moreover, Employee shall not engage in any
activity that is reasonably likely to involve a possible conflict of interest without first obtaining approval in accordance with Employer’s policies and procedures. 
  
 1.6 Nothing contained herein shall be construed to preclude the transfer of Employee’s employment or this Agreement to
another Dresser Entity or Entities (“Subsequent Employer”) as of, or at any time after, the Effective Date and no such transfer shall be deemed to be a termination of employment for purposes of Article 3 hereof; provided, however, that (1)
effective with such transfer, all of Employer’s obligations hereunder shall be assumed by and be binding upon, and all of Employer’s rights hereunder shall be assigned to, such Subsequent Employer, jointly and severally with Employer in
all respects, and the defined term “Employer” as used herein shall thereafter be deemed amended to include such Subsequent Employer, (2) Employee shall be Chief Executive Officer and a member of the board of directors of each of the one or
more companies that in the aggregate hold and/or are the successor or successors to all or substantially all of the business of Employer (“Employer Successors”), and (3) Employer shall remain jointly and severally liable and bound by this
Agreement. Except as otherwise provided above, all of the terms and conditions of this Agreement, including without limitation, Employee’s rights and obligations, shall remain in full force and effect following such transfer of employment. An
example of such an assignment may be the division of Employer into two separate corporate entities which each assume a portion of Employer’s business and which each then shall become Employers, or the assignment of Employee’s contract to a
Dresser Entity which purchases all or substantially all of the assets of Employer, which purchaser will then become an Employer. 
  

 2 

 1.7 The Compensation Resolution is hereby superseded in its entirety and shall hereafter be of no further
force or effect; provided, however, that if the Termination Date occurs prior to December 31, 2006, the Compensation Resolution shall thereupon become effective and of full force and effect once again. In addition, the “Chairman Fee”
previously awarded to Employee in connection with his service as the non-executive chairman of the Board, is hereafter terminated.  
  

	ARTICLE 2:	COMPENSATION AND BENEFITS: 

  
 2.1 From January 1, 2005 to the earlier of “Termination Date” (as defined in Article 3) or December 31, 2006, Employee’s base salary shall
be not less than $200,000 per annum, which base salary shall be paid by Employer in accordance with its standard payroll practice for its executives. Employer and Employee shall renegotiate Employee’s base salary for periods after the 2006
calendar year. 
  
 2.2 From January 1, 2005 to the Termination
Date, Employee will be eligible for an Annual Bonus to be awarded, if at all, based on achievement of performance goals established annually by the Board, in consultation with Employee, within the first ninety days of Employer’s fiscal year.
The Board will reasonably determine whether these performance goals have been met and the amount of any Annual Bonus in its sole discretion, subject to the following guidelines: (1) the Target Annual Bonus will be equal to 50% of Employee’s
base salary and the Maximum Annual Bonus will be equal to 100% of Employee’s base salary; (2) the Board may increase the Target Annual Bonus or the Maximum Annual Bonus at any time, but may not decrease them without Employee’s express
written consent. 
  
 2.3 From January 1, 2005 to the Termination
Date, Employee will receive a perquisite allowance as the Board may establish from time to time. In addition, Employer shall pay or reimburse Employee for all actual, reasonable and customary expenses incurred by Employee in the course of his
employment; provided that such expenses are incurred and accounted for in accordance with Employer’s applicable policies and procedures. 
  
 2.4 From January 1, 2005 to the Termination Date, Employee shall be allowed to participate, on the same basis as other senior executive employees of
Employer, in all applicable medical, health, and dental care benefit plans and programs, including improvements or modifications of the same, which as of January 1, 2005 or thereafter are made available by Employer to Employer’s senior
executive employees and Employer’s Supplemental Executive Retirement Plan as of January 1, 2005 (the “SERP”) (the “Benefit Plans”), excluding, however, those plans established by predecessors of Employer which as of January
1, 2005 are not generally open to new participants and in which Employee is not already a participant. Employee shall not participate in any other plans, including any life insurance, disability protection, or qualified and non-qualified retirement
plans. Except as specifically provided herein, nothing in this Agreement is to be construed or interpreted to increase or alter in any way the rights, participation, coverage, or benefits under such benefit plans or programs than provided to its
similarly situated executive employees pursuant to the terms and conditions of such benefit plans and programs. For purposes of calculating Employee’s benefits under the SERP, Employee’s salary shall be calculated to include
Employee’s base salary plus an amount 

  

 3 

 
equal to salary amounts that were pre-paid to Employee by Employer as severance benefits in 2004. 
  
 2.5 Notwithstanding anything to the contrary in this Agreement, with the
exception of equity based incentives and option plans pursuant to which Employee has received, or is contractually entitled to receive, any awards, it is specifically understood and agreed that Employer shall not be obligated to institute, maintain,
or refrain from changing, amending, or discontinuing any incentive, compensation, or employee benefit program or plan, so long as such actions are similarly applicable to covered employees generally. 
  
 2.6 Employer may withhold from any compensation, benefits, or amounts payable
under this Agreement all federal, state, city, or other taxes as may be required pursuant to any law or governmental regulation or ruling. 
  

	ARTICLE 3:	TERMINATION AND EFFECTS OF TERMINATION: 

  
 3.1 Employee’s employment with Employer may be terminated by either Employee or Employer for any reason or for no reason. The first date that either
party elects to terminate this Agreement is referred to herein as the “Termination Date.” Notwithstanding the any of the terms contained herein, if the Termination Date occurs on or before December 31, 2006, this Agreement shall be
automatically terminated and the Compensation Resolution shall govern the relationship of Employer and Employee as set forth in Section 1.8 hereof. 
  
 3.2 Termination of the employment relationship or status as a director does not terminate those obligations imposed by this Agreement, which are
continuing obligations, including, without limitation, Employee’s obligations under Article 4 and Article 5. 
  

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

  
 4.1 All information, ideas, concepts, improvements, discoveries, and inventions, whether patentable or not, which are
conceived, made, developed or acquired by Employee, individually or in conjunction with others, during Employee’s employment (or prior employment or while serving Employer as a consultant) by or directorship with Employer or any of the other
Dresser Entities (whether during business hours or otherwise and whether on Employer’s premises or otherwise) which relate to the business, products or services of Employer or the other Dresser Entities (including, without limitation, all such
information relating to corporate opportunities, research, financial and sales data, pricing and trading terms, evaluations, opinions, interpretations, acquisition prospects, the identity of customers or their requirements, the identity of key
contacts within the customer’s organizations or within the organization of acquisition prospects, or marketing and merchandising techniques, prospective names, and marks), and all writings or materials of any type embodying any of such items,
shall be the sole and exclusive property of Employer or another Dresser Entity, as the case may be, and shall be treated as “work for hire”. 
  
 4.2 Employee acknowledges that the businesses of Employer and the other Dresser Entities are highly competitive and that their strategies, methods, books,
records, and documents, their technical information concerning their products, equipment, services, and processes, 

  

 4 

 
procurement procedures and pricing techniques, the names of and other information (such as credit and financial data) concerning their customers and business
affiliates, all comprise confidential business information and trade secrets which are valuable, special, and unique assets which Employer or the other Dresser Entities use in their business to obtain a competitive advantage over their competitors.
Employee further acknowledges that protection of such confidential business information and trade secrets against unauthorized disclosure and use is of critical importance to Employer and the other Dresser Entities in maintaining their competitive
position. Employee hereby agrees that Employee will not, at any time during or after his employment by Employer, make any unauthorized disclosure of any confidential business information or trade secrets of Employer or the other Dresser Entities, or
make any use thereof, except in the carrying out of his responsibilities hereunder. Confidential business information shall not include information in the public domain (but only if the same becomes part of the public domain through a means other
than a disclosure prohibited hereunder). The above notwithstanding, a disclosure shall not be unauthorized if (i) it is required by law or by a court of competent jurisdiction or (ii) it is in connection with any judicial, arbitration, dispute
resolution or other legal proceeding in which Employee’s legal rights and obligations as an employee or under this Agreement are at issue; provided, however, that Employee shall, to the extent practicable and lawful in any such events, give
prior notice to Employer of his intent to disclose any such confidential business information in such context so as to allow Employer or any other Dresser Entity an opportunity (which Employee will not oppose) to obtain such protective orders or
similar relief with respect thereto as may be deemed appropriate. 
  
 4.3 All written materials, records, and other documents made by, or coming into the possession of, Employee during the period of Employee’s employment (or prior employment or while serving Employer as a consultant) by Employer or term
as a director of Employer which contain or disclose confidential business information or trade secrets of Employer or the other Dresser Entities shall be and remain the property of Employer, or the other Dresser Entities, as the case may be. Upon
termination of Employee’s employment or status by Employer, for any reason, Employee promptly shall deliver the same, and all copies thereof, to Employer. 
  

	ARTICLE 5:	COVENANT NOT TO COMPETE: 

  
 5.1 From the Effective Date to the Termination Date, and until the termination of the Compensation Resolution, as reinstated by operation of Section 1.8
(the “Non-Compete Period”), he will not, in association with or as an officer, principal, member, advisor, agent, partner, director, material stockholder, employee or consultant of any corporation (or sub-unit, in the case of a diversified
business) or other enterprise, entity or association, work on the acquisition or development of, or engage in any line of business, property or project in which Employee (i) is involved in or responsible for on the date of such termination, or (ii)
has worked with or evaluated in the last year and which were still being pursued or evaluated by a Dresser Entity within one month of the time of such termination. Such restriction shall cover Employee’s activities anywhere in the world.

  
 5.2 From the Effective Date to the Termination Date and during
the Non-Compete Period, Employee will not solicit or induce any person who is or was employed by any of the Dresser Entities at any time during such term or period, excluding employees who may have left their employment by such Dresser Entity more
than 60 days prior to being hired or solicited for 

  

 5 

 
employment by Employee, (A) to interfere with the activities or businesses of any Dresser Entity or (B) to discontinue his or her employment with any of the
Dresser Entities, or employ any such person in a business or enterprise which competes with any of the Dresser Entities. 
  
 5.3 From the Effective Date to the Termination Date or during the Non-Compete Period, Employee will not, directly or indirectly, influence or attempt to
influence any customers, distributors or suppliers of any of the Dresser Entities to divert their business to any competitor of the Dresser Entities or their affiliates. 
  
 5.4 Employee understands that the provisions of Article 5 hereof may limit his ability to earn a livelihood in a business
similar to the business in which he is involved, but as a former executive officer of Employer he nevertheless agrees and hereby acknowledges that (i) such provisions do not impose a greater restraint than is necessary to protect the goodwill or
other business interests of Employer and any of the other Dresser Entities; (ii) such provisions contain reasonable limitations as to time, scope of activity, and geographical area to be restrained; and (iii) the consideration provided hereunder is
sufficient to compensate Employee for the restrictions contained in Article 5 hereof. In consideration of the foregoing and in light of Employee’s education, skills and abilities, Employee agrees that he will not assert that, and it should not
be considered that, any provisions of Article 5 otherwise are void, voidable or unenforceable or should be voided or held unenforceable. 
  
 5.5 Employee acknowledges and agrees that his duties with Employer are of an executive nature and that he is a member of Employer’s management group.
Employee agrees that the remedy at law for any breach by him of any of the covenants and agreements set forth in this Article 5 will be inadequate and that in the event of any such breach, Employer may, in addition to the other remedies which may be
available to it at law, and pursuant to Section 5.7 of this Agreement obtain injunctive relief prohibiting Employee (together with all those persons associated with him) from the breach of such covenants and agreements. 
  
 5.6 Each of the covenants of this Article 5 are given by Employee as part of
the consideration for this Agreement and as an inducement to Employer to enter into this Agreement and accept the obligations hereunder. 
  

	ARTICLE 6:	EXCISE TAX GROSS-UP PROVISIONS: 

  
 6.1 Anything in this Agreement to the contrary notwithstanding, and except as set forth below, in the event it shall be determined that any Payment would
be subject to the Excise Tax, then Employee shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount such that, after payment by Employee of all Taxes, including any income taxes and Excise Tax
imposed upon the Gross-Up Payment, Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this Section 6.1, if it shall be determined that Employee is
entitled to the Gross-Up Payment, but that the Parachute Value of all Payments does not exceed one hundred and ten percent (110%) of the Safe Harbor Amount, then except as provided below, no Gross-Up Payment shall be made to Employee and the amounts
payable under this Agreement or under any other agreement between Employee and Employer or its affiliates, other than amounts or benefits provided pursuant to any option or equity grants to Employee (the “Subject Payments”), shall
be 

  

 6 

 
reduced (but not below zero) so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The reduction of the amounts
payable hereunder, if applicable, shall be made in such a manner as to maximize the Value of all Payments actually made to Employee. For purposes of reducing the Parachute Value of all Payments to the Safe Harbor Amount, only the Subject Payments
shall be reduced. If the reduction of the Subject Payments would not result in a reduction of the Parachute Value of all Payments to the Safe Harbor Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section 6.1, and
the Gross-Up Payment shall be made to Employee. Employer’s obligation to make Gross-Up Payments under this Section 6.1 shall not be conditioned upon Employee’s termination of employment. 
  
 6.2 Subject to the provisions of Section 6.3, all determinations required to
be made under this Article 6, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by PricewaterhouseCoopers, or if such
firm is unwilling to act in such capacity, such other nationally recognized certified public accounting firm as may be mutually agreed upon by Employee and Employer (the “Accounting Firm”). The Accounting Firm shall provide detailed
supporting calculations both to Employer and Employee within fifteen (15) business days of the receipt of notice from Employee that there has been a Payment or such earlier time as is requested by Employer. In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting the change of control, at Employee’s request Employee and Employer shall mutually agree upon another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by Employer. Any Gross-Up Payment, as determined pursuant to this Article 6,
shall be paid by Employer to or on behalf of Employee within five (5) business days of the receipt of the Accounting Firm’s determination, provided that no such payment shall be due under this Article 6 before five (5) days prior to the date
the related payments of Taxes are required to be paid by Employee to the applicable taxing authority. Any determination by the Accounting Firm shall be binding upon Employer and Employee, absent manifest error. As a result of the uncertainty in the
application of Sections 280G and 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by Employer should have been made (the
“Underpayment”), consistent with the calculations required to be made hereunder. In the event Employer exhausts its remedies pursuant to Section 6.3 and Employee thereafter is required to make a payment of any additional Excise Tax,
the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by Employer to or for the benefit of Employee. 
  
 6.3 Employee shall notify Employer in writing of any claim by the Internal Revenue Service that, if successful, would
require the payment by Employer of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than ten (10) business days after Employee is informed of such claim. Employee shall apprise Employer of the nature of
such claim and, if applicable, the date on which such claim is requested to be paid. Employee shall not pay such claim prior to the expiration of the thirty (30) calendar day period following the date on which Employee gives such notice to Employer
(or such shorter period ending on the date that any payment of Taxes with respect to such claim is due). If Employer notifies 

  

 7 

 
Employee in writing prior to the expiration of such period that Employer desires to contest such claim (or if Employee pays the related Taxes within such
shorter period and Employer requests, within such thirty (30)-day period, that Employee claim a refund of some or all of such Taxes), then Employee shall: 
  
 (i) give Employer any information reasonably requested by Employer relating to such claim; 
  
 (ii) take such action in connection with contesting such
claim or claiming such refund as Employer shall reasonably request in writing from time to time, including accepting legal representation with respect to such claim by an attorney reasonably selected by Employer; 
  
 (iii) cooperate with Employer in good faith in order
effectively to contest such claim or pursue such refund, and 
  
 (iv) permit Employer to participate in any proceedings relating to such claim; 
  
 provided, however, that Employer shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest or refund claim (including, but only to the
extent reasonably incurred, costs and expenses incurred by Employee), and shall indemnify and hold Employee harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 6.3, Employer shall control all proceedings taken in connection with such contest, and, at its sole discretion, may pursue or forgo any
and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either direct Employee to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as Employer shall determine; provided,
however, that, if Employer directs Employee to pay such claim and sue for a refund, Employer shall advance the amount of such payment to Employee, on an interest-free basis, and shall indemnify and hold Employee harmless, on an after-tax basis, from
any Excise Tax or income tax (including interest or penalties) imposed with respect to such advance or with respect to any imputed income in connection with such advance; and provided, further, that any extension of the statute of limitations
relating to payment of Taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due (other than any such extension arising by operation of law) is limited solely to such contested amount. Furthermore,
Employer’s control of the contest shall be limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority. 
  
 6.4 If, after
the receipt by Employee of a Gross-Up Payment or an amount advanced by Employer pursuant to Section 6.3, Employee becomes entitled to receive any refund with respect to the Excise Tax to which such Gross-Up Payment relates or with respect to such
claim, Employee shall (subject to Employer complying in all material respects with the requirements of 

  

 8 

 
Section 6.3, if applicable) promptly pay to Employer the amount of such refund (together with any interest paid or credited thereon after Taxes applicable
thereto), less any Taxes required to be paid by Employee with respect to the receipt thereof. If, after the receipt by Employee of an amount advanced by Employer pursuant to Section 6.3, a determination is made that Employee shall not be entitled to
any refund with respect to such claim and Employer does not notify Employee in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) calendar days after such determination, then such advance shall be forgiven
and shall not be required to be repaid and the amount of such advance shall be offset, to the extent thereof, against the amount of Gross-Up Payment required to be paid. Employer may request that Employee pursue a refund of any Gross-Up Payment paid
under this Article 6, and in such case the provisions of Section 6.3 and this Section 6.4 shall govern the pursuit of such refund. 
  
 6.5 Notwithstanding any other provision of this Article 6, Employer may, in its sole discretion, withhold and pay over to the Internal Revenue Service or
any other applicable taxing authority, for the benefit of Employee, all or any portion of any Gross-Up Payment, and Employee hereby consents to such withholding. 
  
 6.6 For purposes of this Article 6, the following definitions will apply: 
  
 (i) “Code” means the Internal Revenue Code
of 1986, as amended from time to time. 
  
 (ii)
“Excise Tax” means the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 
  
 (iii) “Parachute Value” of a Payment shall mean the portion of such Payment, if any, that
constitutes a “parachute payment” under Section 280G(b)(2) of the Code, to the extent taken into account (including any discount to the present value as of the date of the change of control for purposes of Section 280G of the Code) in
determining whether and to what extent the Excise Tax will apply to such Payment, as determined by the Accounting Firm. 
  
 (iv) “Payment” shall mean any payment or distribution by or on behalf of Employer or its affiliates in the nature of
compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of Employee, whether paid or payable pursuant to this Agreement or otherwise, other than the Gross-Up Payment. 
  
 (v) “Safe Harbor Amount” means 2.99 times
Employee’s “base amount,” within the meaning of Section 280G(b)(3) of the Code. 
  
 (vi) “Taxes” means the incremental United States federal, state and local income, excise and other taxes payable by
Employee with respect to any applicable item of income. The amount of any tax, interest or penalty shall (a) be reduced to take into account the deductibility of such item for purposes of any other tax, and (b) include any interest and penalties
with respect to such tax other than interest or penalties arising from Employee’s failure to pay such tax on a timely basis following payment thereof by Employer to Employee in accordance with this Agreement, or from Employee’s failure to
comply with the terms of this Agreement. 
  

 9 

 (vii) “Value” of a Payment shall mean the economic present value of a
Payment as of the date of the change of control for purposes of Section 280G of the Code, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code. 
  

	ARTICLE 7:	MISCELLANEOUS: 

  
 7.1 For purposes of this Agreement, the terms “affiliate” or “affiliated” mean an entity or entities in which Employer or Employer
Ltd. a Bermuda corporation has a 20% or more direct or indirect equity interest or entity or entities that have a 20% or more direct or indirect equity interest in Employer or Employer Ltd. 
  
 7.2 For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been duly given when received by or tendered to Employee or Employer, as applicable, by pre-paid courier or by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows: 
  

			
	If to Employer:	  	 Dresser, Ltd.
 15455 Dallas Parkway, Suite
1100
 Addison, TX 75001
 (or Employer’s current headquarters
address)
 Attention: Vice-President & General Counsel

		
	With a copy to:	  	William Macaulay, care of First Reserve Corporation at its most recent business address.
		
	If to Employee:	  	To his last known personal residence

  
 7.3 This Agreement
shall be governed by and construed and enforced, in all respects in accordance with the law of the State of Delaware, without regard to principles of conflicts of law, unless preempted by federal law, in which case federal law shall govern;
provided, however, that the rules of the American Arbitration Association shall govern in all respects with regard to the resolution of disputes hereunder as provided in Section 7.6. 
  
 7.4 No failure by either party hereto at any time to give notice of any breach by the other party of, or to require
compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
  
 7.5 It is a desire and intent of the parties that the terms, provisions, covenants, and remedies contained in this Agreement
shall be enforceable to the fullest extent permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the application thereof to any person, association, or entity or circumstances shall, to any extent, be construed to
be invalid or unenforceable in whole or in part, then such term, provision, covenant, or remedy shall be construed in a manner so as to permit its enforceability under the applicable law to the fullest extent permitted by law. In any case, the
remaining provisions of this Agreement or the 

  

 10 

 
application thereof to any person, association, or entity or circumstances other than those to which they have been held invalid or unenforceable, shall
remain in full force and effect. 
  
 7.6 It is the mutual
intention of the parties to have any dispute concerning this Agreement resolved out of court. Accordingly, the parties agree that any such dispute shall, as the sole and exclusive remedy, be submitted for final and binding arbitration under the
rules of the American Arbitration Association. Such arbitration shall be held in Dallas, Texas before a single arbitrator chosen in accordance with such rules; provided, however, that Employer, on its own behalf and on behalf of any of the other
Dresser Entities, shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any breach or the continuation of any breach of the provisions of Article 4 and Employee hereby consents that such
restraining order or injunction may be granted without the necessity of Employer posting any bond. The parties agree that the resolution of any dispute concerning this Agreement through any of the means set forth in this Section 7.7 shall be final
and binding. 
  
 7.7 This Agreement shall be binding upon and
inure to the benefit of Employer, its successors in interest, or any other person, association, or entity which may hereafter acquire or succeed to all or substantially all of the business assets of Employer by any means, whether indirectly or
directly, and whether by purchase, merger, consolidation, or otherwise. Employee’s rights and obligations under this Agreement are personal and such rights, benefits, and obligations of Employee shall not be voluntarily or involuntarily
assigned, alienated, or transferred, whether by operation of law or otherwise, without the prior written consent of Employer, other than in the case of death or permanent disability of Employee. 
  
 7.8 This Agreement replaces and merges any previous agreements and
discussions pertaining to the subject matter covered herein, including without limitation the Original Agreement. This Agreement constitutes the entire agreement of the parties with regard to the terms of Employee’s employment, termination of
employment and severance benefits, and contains all of the covenants, promises, representations, warranties, and agreements between the parties with respect to such matters. Each party to this Agreement acknowledges that option plan participation is
handled in separate agreements and that no representation, inducement, promise, or agreement, oral or written, has been made by either party with respect to the foregoing matters which is not embodied herein, and that no agreement, statement, or
promise relating to the employment of Employee by Employer that is not contained in this Agreement shall be valid or binding. Any modification of this Agreement will be effective only if it is in writing and signed by each party whose rights
hereunder are affected thereby. 
  
 7.9 Employer will maintain
directors’ and officers’ liability insurance for Employee while employed or serving as a director of Employer, and for a five (5) year period following termination of employment or director status at a level equivalent to the most
favorable and protective coverage for any active officer or director of Employer. 
  
 7.10 Employer agrees to indemnify Employee for any job-related liability to the fullest extent permitted under Employer’s by-laws and other applicable indemnification agreements. 
  
 7.11 Employer will pay Employee’s legal fees and legal expenses in
connection with the negotiation, drafting, implementation, interpretation, and enforcement of this Agreement. 
  

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

			
	DRESSER, INC.
		
	By:	 	/s/    MARK J. SCOTT        
	 Name:
	 	Mark J. Scott
	 Title:
	 	Senior Vice President, Human Resources

  

	
	EMPLOYEE
	
	/s/    PATRICK M. MURRAY        
	Patrick M. Murray

  

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