Document:

EX-10.2

 Exhibit 10.2 

PERFORMANCE GOALS 
 FOR
PERFORMANCE SHARE UNIT AWARDS GRANTED IN 2014 UNDER 
 THE BAKER HUGHES INCORPORATED 2002 DIRECTOR & OFFICER 

LONG-TERM INCENTIVE PLAN 
  

	1.	2014 Performance Share Unit Program Overview 

 The Performance Share Unit Program, a
component compensation program established under the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan (the “2014 PSUP”), provides for equity awards for participants if certain performance goals are
met during the term of the 2014 PSUP. 
 The amount that may be paid to a Participant under a Performance Share Unit Award will be
determined under a two-step calculation. Under the first step, the number of Initial Performance Share Units awarded to a Participant under a Performance Share Unit Award will be preliminarily adjusted as specified herein based upon the achievement
of Return on Capital Employed and Revenue growth operational performance goals that are consistent with the goals established for non-officer employees under the 2014 cash-based performance unit programs under the Baker Hughes Incorporated 2002
Director & Officer Long-Term Incentive Plan and the Baker Hughes Incorporated Employee Long-Term Incentive Plan. The resulting preliminarily adjusted units are referred to as “Preliminarily Adjusted Units.” Under the second
step, the Preliminarily Adjusted Units will be further adjusted as specified herein based upon relative Total Shareholder Return performance. The final amount of the adjusted units is referred to as the “Final Adjusted Units.” A
Participant will be entitled to be awarded one share of the Company’s Common Stock for each of the Participant’s Final Adjusted Units. 

Operational Performance for Purposes of Determining Preliminarily Adjusted Units 

Certain adjustments to a Participant’s Initial Performance Share Units are made based upon operational performance goals for purposes of
determining the amount of a Participant’s Preliminarily Adjusted Units. The operational performance goals are related to the Company’s achievement as compared to a peer group of companies. Achievement of the operational performance goals
is measured over multiple performance periods from the beginning of 2014 to the end of 2016. The amount of a Participant’s Preliminarily Adjusted Units is determined by multiplying the number of Initial Performance Share Units awarded to the
Participant under a Performance Share Award by an aggregate preliminary payout percentage referred to as the “Total Unit Modifier.” Twenty-five percent of the Total Unit Modifier is determined based upon one-year performance
relative to certain specified performance criteria during each of 2014, 2015, and 2016. The final twenty-five percent of the Total Unit Modifier is calculated at the end of 2016 based upon the cumulative performance of the Company over the
three-year performance period 2014 through 2016. 

  
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 Relative Total Shareholder Return (TSR) Performance 

Certain final adjustments to a Participant’s Preliminarily Adjusted Units are made based on relative TSR performance goals. The relative
TSR performance goals are related to the Company’s TSR performance compared to the Philadelphia Stock Exchange Oil Service Sector Index (or OSX), over the Three-Year Performance Period. 

 

	 	2.	Performance Goals for the Performance Period 

 Operational Performance 

For purposes of determining the amount of a Participant’s Preliminarily Adjusted Units under the 2014 PSUP, the performance goals are
based upon the Company’s (1) change in Revenue as compared to the Peer Group, and (2) Return on Capital Employed or ROCE as compared to the Peer Group measured in absolute terms as well as the percentage growth in ROCE as compared to
the Peer Group. For each performance goal, if the Company’s performance as compared to the Peer Group is the highest, the Company’s performance rank shall be first. 

  
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	(a)	One Year Performance Periods 

 Revenue Growth. For the 2014 Performance Period,
the 2015 Performance Period and the 2016 Performance Period, the Company’s One Year Interval Percentage Increase in Revenue for its 2014, 2015 and 2016 fiscal years, respectively, shall be compared against the One Year Interval Percentage
Increase in Revenue for all members of the Peer Group. 
 Return on Capital Employed. For the 2014 Performance Period, the 2015
Performance Period and the 2016 Performance Period, the Company’s ROCE for its 2014, 2015 and 2016 fiscal years, respectively, shall be compared against the ROCE for all members of the Peer Group during the applicable Current Period, as an
absolute measure. In addition, as a relative measure, for the 2014 Performance Period, the 2015 Performance Period and the 2016 Performance Period, the Company’s One Year Interval Percentage Increase in ROCE for its 2014, 2015 and 2016 fiscal
years, respectively, shall be compared against the One Year Interval Percentage Increase in ROCE for all members of the Peer Group. 
  

	(b)	Three-Year Performance Period 

 Revenue Growth. For the Three-Year Performance
Period, the Three-Year Percentage Increase in Revenue of the Company shall be compared against the Three-Year Percentage Increase in Revenue for all members of the Peer Group as of December 31, 2016. 

  
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 Return on Capital Employed. For the Three-Year Performance Period, the sum of the ROCE of
the Company for the 2014 Performance Period, the 2015 Performance Period and the 2016 Performance Period shall be compared against the sum of the ROCE for each member of the Peer Group for the 2014 Performance Period, the 2015 Performance Period and
the 2016 Performance Period, as an absolute measure. For the relative measure in the Three-Year Performance Period, the Three-Year Percentage Increase in ROCE of the Company shall be compared against the Three-Year Percentage Increase in ROCE for
all members of the Peer Group as of December 31, 2016. 
 Relative Total Shareholder Return (TSR) Performance 

Three-Year Performance Period 

For the Three-Year Performance Period, the Three-Year Total Shareholder Return of the Company shall be compared against the Three-Year Total
Shareholder Return (TSR) for all members of the OSX Index as of December 31, 2016. TSR will be determined using the average share price during the 20-business day period ending on the first and last business day of Performance Period, assuming
that any dividends paid are reinvested as of the ex-dividend date. 
  

	 	3.	Payout Percentage Adjustments Based on Peer Group Ranking 

 Operational Performance

 For the Revenue Growth metric, the Preliminary Payout Percentage for an applicable performance period (the 2014 Performance Period,
the 2015 Performance Period, the 2016 Performance Period or the Three-Year Performance Period) for each of the three performance goals is 25% times the payout percentage listed below. 

 

																					
	 2014, 2015, 2016, and Three-Year Performance Period 
	 
	 Peer Group Rank in Revenue Growth
	  	5th	 	 	4th	 	 	3rd	 	 	2nd	 	 	1st	 
	 Payout Percentage
	  	 	0	% 	 	 	45	% 	 	 	90	% 	 	 	135	% 	 	 	200	% 

  
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 The Preliminary Payout Percentage for ROCE will be based on a combination of the Company’s
rank in absolute ROCE as well as the Company’s rank in percentage growth in ROCE. 
  
 

 
 The average of the Preliminary Payout Percentages for the Revenue Growth and ROCE performance for a
performance period is used to determine the Average Preliminary Payout Percentage for the performance period. 
 The sum of the Average
Preliminary Payout Percentages is the “Total Unit Modifier.” 
 The Participant’s Initial Performance
Share Units multiplied by the Total Unit Modifier equals the Participant’s Preliminarily Adjusted Units. 
 In the example below, for
illustrative purposes, Year 1 Revenue growth rank was 5th and 0% of 25% is 0%. ROCE absolute rank was 2nd and the ROCE rank in Growth was 2nd, so the matrix above indicates a payout percentage of 135%, and 135% percent of 25% is 33.75%. The Average Preliminary Payout Percentage based upon the performance in Year 1 is 16.88%. The sum of
the Average Preliminary Payout Percentages for each of the performance periods equals the Total Unit Modifier. 
  
 

 
 Note that levels of achievement contained in the foregoing example are not forecasts by the Company of its
expected levels of achievement. Rather, the levels of achievement for purposes of the illustrative example were selected at random. 

  
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 If the Peer Group is reduced by merger(s) or otherwise during the term of the Three-Year
Performance Period the Committee shall make such adjustments to the above unit modifier chart as it deems appropriate in its sole discretion. Such adjustments shall not increase the amounts that would have been payable under the above unit modifier
chart absent such adjustments. 
 Relative Total Shareholder Return (TSR) Performance 

The final number of shares of the Company’s Common Stock to be paid under a Performance Share Unit Award granted in 2014 earned will be
calculated by adjusting the Participant’s Preliminary Adjusted Units upwards or downwards based on the Company’s relative TSR performance compared to the OSX Index. The adjustment will be based on the table below. 

 

			
	 TSR Percentile Rank
	  	TSR
Modifier
	 Less than 25th Percentile
	  	-30%
	 25th Percentile
	  	-15%
	 50th Percentile
	  	0%
	 75th Percentile or Greater
	  	30%

 For Example: 

The total award earned is calculated by first multiplying the number of Initial Performance Share Units granted by the Total Unit Modifier.
The resulting product, the Preliminarily Adjusted Units, is then multiplied by the TSR Modifier. The sum of (1) the Preliminarily Adjusted Units and (2) the product of the Preliminarily Adjusted Units and the TSR Multiplier is the Final
Adjusted Units. Each Final Adjusted Unit represents a right to receive one share of the Company’s Common Stock. 
 Assume the
following: 
  

	 	•	 	A participant was granted 10,000 Initial Performance Share Units 

  

	 	•	 	The Company’s operational performance resulted in a Total Unit Modifier of 111.26% 

  

	 	•	 	The Company’s relative TSR was at the 75th percentile of the OSX Index resulting in 30% TSR Modifier 

The total award earned = 10,000 x 111.26% x 1.30% = 14,464 Performance Share Units 

  
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	4.	Performance Comparison Groups 

 Operational Performance Peer Group 

The Peer Group is as follows for the performance periods ending in 2014, 2015, and 2016, and for the Three-Year Performance Period. 

 

	
	 Peer Group

(5 Companies)

	 Baker Hughes Incorporated

Halliburton Company

National Oilwell Varco Incorporated

Schlumberger Limited

	 Weatherford International Ltd.

 Relative TSR Performance Peer Group 

Relative TSR Performance for the Three-Year Performance Period will consist of the companies in the OSX Index at the end of Three-Year
Performance Period. The following is a list of the companies currently in the OSX Index: 
 Baker Hughes Incorporated 

Cameron International Corporation 

Diamond Offshore Drilling, Inc. 

Halliburton Company 

Helmerich & Payne, Inc. 

Nabors Industries Ltd. 
 Noble
Corp. 
 National Oilwell Varco. 

Oceaneering International, Inc. 

Oil States International Inc. 

Rowan Companies, plc 
 Transocean
Ltd 
 Schlumberger Limited 

Tidewater Inc. 
 Weatherford
International Ltd. 
  

	 	5.	General Performance Share Unit Formula 

 Except as otherwise specified in the Terms and
Conditions, the aggregate amount payable to a Participant for a Performance Share Unit Award granted in 2014 under the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan shall be equal to the number of Initial
Performance Share Units granted to the Participant multiplied by the Total Unit Modifier, as further increased or decreased by the TSR Modifier. 

  
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 The Compensation Committee shall determine in writing the extent to which the Performance Goals
applicable to the Performance Share Unit Awards have been satisfied before the Company makes any payments under the Performance Share Unit Awards. 

Subject to the terms of the Plan, the Performance Share Unit Award and the Terms and Conditions, unless prior to the Scheduled Payment Date a
Change in Control (as defined in the Terms and Conditions) occurs or the Participant forfeits his Performance Share Unit Award, on the Scheduled Payment Date the Company shall pay the Participant a number of shares of the Company’s Common Stock
in an amount equal to the Final Adjusted Units (prorated in accordance with the Terms and Conditions in the event of the Retirement, death or permanent disability of the Participant within the meaning of the Terms and Conditions). 

The Compensation Committee may not increase the Final Performance Share Unit Award Modifier for, or otherwise increase the aggregate amount
payable to a Participant for the performance period under, a Performance Share Unit Award Agreement issued by BHI in 2014 under the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan. 

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

 

	 	6.	Adjustments 

 Revenue Growth and Return on Capital Employed may be determined by
including or excluding, in the Compensation Committee’s discretion, items that are determined to be extraordinary, unusual in nature, infrequent in occurrence, related to the disposal or acquisition of a segment of a business, or related to a
change in accounting principal, in each case, based on Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 225-20, Income Statement, Extraordinary and Unusual Items, and FASB ASC 830-10, Foreign Currency
Matters, Overall, or other applicable accounting rules, or consistent with Company accounting policies and practices in effect on the date these Performance Goal are established. 

 

	 	7.	Definitions 

 For Performance Share Unit Award Agreements issued by Baker Hughes
Incorporated (“BHI”) in 2014 under the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan, the terms set forth below shall have the following meanings: 

“Average Preliminary Payout Percentage” means, for a particular performance period, the average of the 25%
Preliminary Payout Percentages for the Revenue Growth and ROCE performance for the performance period. 
 “Capital
Employed” means an amount equal to the Relevant Company’s total shareholders’ equity at the close of the Current Period plus the Relevant Company’s long-term debt, short-term borrowing and the current portion of
long-term debt at the close of the Current Period. 
 “Company” means BHI and all of its Affiliates in which
BHI directly or indirectly has a capital investment. 

  
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 “Compensation Committee” means the Compensation Committee of the
Board of Directors of the Company. 
 “Current Period” means the fiscal year of the Relevant Company that
coincides with or ends within the fiscal year of the Company to which the applicable Performance Goal applies. 

“EBIT” means earnings before deduction of interest and taxes. 

“Final Adjusted Units” means the final amount of a Participant’s adjusted units determined after the
adjustments provided herein. 
 “Initial Performance Share Units” means the number of Performance Share Units
awarded to a Participant under a Performance Share Unit Award, determined prior to any adjustments hereunder. 
 “One Year
Interval Percentage Increase in Revenue” means the result of (a) minus (b), divided by (c), where (a) is the Revenue of the Relevant Company for the Current Period, (b) is the Revenue of the Relevant Company for the
Prior Period, and (c) is the Revenue of the Relevant Company for the Prior Period. 
 “One Year Interval Percentage
Increase in ROCE” means the result of (a) minus (b), divided by (c), where (a) is the ROCE of the Relevant Company for the Current Period, (b) is the ROCE of the Relevant Company for the Prior Period, and (c) is
the ROCE of the Relevant Company for the Prior Period. 
 “Participant” means the person to whom a
Performance Share Unit Award is granted. 
 “Peer Group” means the group identified in Section 4. 

“Performance Share Units” means the number of performance units listed in the Participant’s agreement
evidencing his or her Performance Share Unit Award. 
 “Performance Share Unit Award” means a Performance
Share Unit Award granted under the Plan in 2014. 
 “Plan” means the Baker Hughes Incorporated 2002
Director & Officer Long-Term Incentive Plan. 
 “Preliminarily Adjusted Units” means the product of
the Participant’s Initial Performance Share Units multiplied by the Total Unit Modifier. 
 “Preliminary Payout
Percentage” means the preliminary payout percentages identified herein for the increase in Revenue and ROCE metrics. 

“Prior Period” means the fiscal year of the Relevant Company that coincides with or ends within the fiscal year
of the Company immediately preceding the fiscal year of the Company to which the applicable Performance Goal applies. 

  
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 “Relevant Company” means the Company or a member of the Peer Group. 

“Return on Capital Employed’’ or “ROCE’ means the Relevant Company’s EBIT for the Current Period,
divided by the Relevant Company’s Capital Employed. 
 “Revenue” means the revenue of the Company or the revenue of a
particular member of the Peer Group, as applicable. 
 “Scheduled Payment Date” means March 15, 2017. 

“Three-Year Interval Percentage Increase in Revenue “ means the result of (a) minus (b), divided by (c), where
(a) is the Revenue for the Relevant Company for the Current Period corresponding to the final fiscal year of the Company ending during the Three-Year Performance Period, (b) is the Revenue of the Relevant Company for the Prior Period
corresponding to the fiscal year of the Company immediately prior to the first fiscal year of the Company beginning during the Three-Year Performance Period and (c) is the Revenue of the Relevant Company for the Prior Period corresponding to
the fiscal year of the Company immediately prior to the first fiscal year of the Company beginning during the Three-Year Performance Period. 

“Three-Year Interval Percentage Increase in ROCE” means the result of (a) minus (b), divided by (c), where (a) is
the ROCE for the Relevant Company for the Current Period corresponding to the final fiscal year of the Company ending during the Three-Year Performance Period, (b) is the ROCE of the Relevant Company for the Prior Period corresponding to the
fiscal year of the Company immediately prior to the first fiscal year of the Company beginning during the Three-Year Performance Period and (c) is the ROCE of the Relevant Company for the Prior Period corresponding to the fiscal year of the
Company immediately prior to the first fiscal year of the Company beginning during the Three-Year Performance Period. 
 “Three-Year
Performance Period” means the three-year period beginning January 1, 2014, and ending December 31, 2016. 

“Three-Year Total Shareholder Return” means the TSR over the Three-Year Performance Period. 

“Terms and Conditions “ means the Terms and Conditions of Performance Unit Award Agreements adopted by the Compensation
Committee with respect to Performance Unit Awards. 
 “Total Shareholder Return” or “TSR” means the total
return to the shareholder. 
 “TSR Modifier” means the applicable percentage amount listed in the TSR modifier chart. 

“TOTAL Unit Modifier” means the sum of the Average Preliminary Payout Percentages for the 2014 Performance Period, the 2015
Performance Period, the 2016 Performance Period and the Three-Year Performance Period. 
 “2014 Performance Period’’
means the one-year period beginning January 1, 2014, and ending December 31, 2014. 

  
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 “2015 Performance Period” means the one-year period beginning
January 1, 2015, and ending December 31, 2015. 
 “2016 Performance Period” means the one-year
period beginning January 1, 2016, and ending December 31,2016. 

  
 11EX-10.3

 Exhibit 10.3 
  

 
 BAKER HUGHES INCORPORATED PERFORMANCE UNIT AWARD AGREEMENT AWARD OF PERFORMANCE UNITS PAYABLE IN CASH 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 Director & Officer Long-Term Incentive Plan (the
“Plan”), hereby awards to you, the above named Participant, effective as of the Grant Date set forth above (the “Grant Date”), that number of Performance Units set forth above (each, a “Performance Unit”, and
collectively, the “Performance Units”), on the terms and conditions set forth in this Performance Unit Award Agreement (this “Agreement”). Each Performance Unit provides you an opportunity to earn a cash payment based upon the
achievement of certain performance goals established by the Committee (the “Performance Goals”) for the three-year period beginning January 1 of the year of the Grant Date and ending December 31 of the year containing the third
anniversary of the Grant Date (the “Performance Period”). The Performance Goals and the formulas for determining the amounts payable under this Agreement established by the Compensation Committee are available for your review on the Baker
Hughes Direct website at www.bakerhughesdirect.com. The Committee may not increase the amount payable under this Agreement. If the Performance Goals are not achieved at a minimum level of performance and a Change in Control of the Company has not
occurred on or before the last day of the Performance Period, then the award pursuant to this Agreement shall lapse and be forfeited as of the end of the Performance Period. The Committee’s determination of whether the Performance Goals
applicable to this Agreement are achieved shall be binding upon all persons. Any amount payable to you pursuant to this Agreement will be paid to you by the Employer by March 15, after the end of the Performance Period (the “Scheduled
Payment Date”), unless otherwise provided under the attached Terms and Conditions of Performance Unit Award Agreements (the “Terms and Conditions”). Such payment will be made to you in exchange for the Performance Units and thereafter
you shall have no further rights with respect to such Performance Units or this Agreement. If a Change in Control of the Company occurs or your employment with the Company and Affiliates terminates on or before the last day of the Performance
Period, your rights to the Performance Units and a payment under this Agreement will be determined as provided in the Terms and Conditions. 

  
 

 
 The Performance 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 Performance Units and the obligation to forfeit and surrender such Performance Units. The Performance Units and your rights under this Agreement 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 Group shall not be bound thereby. 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 Performance
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. The shares of Common Stock (the “shares”) that may be issued under this Plan are
registered with the Securities and Exchange Commission (“SEC”) under a Registration Statement on Form S-8. A Prospectus describing the Plan and the shares and the Terms and Conditions can be found on the Baker Hughes Direct website at
www.bakerhughesdirect.com. You may obtain a copy of the Plan Prospectus by requesting it from the Company. BAKER HUGHES INCORPORATED Martin S. Craighead Chairman and Chief Executive Officer 

 BAKER HUGHES INCORPORATED 

TERMS AND CONDITIONS 
 OF

 PERFORMANCE UNIT AWARD AGREEMENTS 

These Terms and Conditions are applicable to a performance unit granted pursuant to the Baker Hughes Incorporated 2002 Director &
Officer Long-Term Incentive Plan (the “Plan”) and are incorporated as part of the Performance Unit Agreement setting forth the terms of such performance unit (the “Agreement”). 

 

	1.	CHANGE IN CONTROL/TERMINATION OF EMPLOYMENT. The following provisions will apply in the event a Change in Control of the Company occurs, or your employment with the Company and all Affiliates (collectively, the
“Company Group”) terminates, before the last day of the Performance Period (as that term is defined in the Performance Unit Agreement awarded to you (the “Agreement”)).

 1.1 Termination Generally. If your employment with the Company Group terminates on or before the last day of the
Performance Period for any reason other than one of the reasons described in Sections 1.2 through 1.5 below, all of your rights in the Agreement, including all rights to the Performance Units granted to you, will lapse and be completely
forfeited on the date your employment terminates. 
 1.2 Change in Control. If a Change in Control of the Company occurs on or before
the last day of the Performance Period and your employment with the Company Group does not terminate before the date the Change in Control of the Company occurs, then the Company will pay to you in cash an amount determined under the following
formula in lieu of any other amounts under the Agreement: 
 (1) multiplied by (2) multiplied by (3) divided by (4) 

where (1) is $100, (2) is the number of Performance Units that were awarded to you under the Agreement, (3) is the number of
days from (and including) the first day of the Performance Period to (and including) the date the Change in Control of the Company occurs, and (4) is the number of days during the Performance Period. Any amount payable to you pursuant to this
Section 1.2 will be paid by the Company to you (a) ten (10) business days after the date the Change in Control of the Company occurs if the Change in Control of the Company qualifies as a change in the ownership or effective control
of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of section 409A of the Internal Revenue Code of 1986, as amended and the Department of Treasury rules and regulations issued
thereunder, or (b) on the Scheduled Payment Date if the Change in Control of the Company does not so qualify. Such payment will be made to you in exchange for the Performance Units and thereafter you shall have no further rights with respect to
such Performance Units or the Agreement and the Company Group will have no further obligations to you pursuant to the Performance Units or the Agreement. 

  
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 1.3 Disability. Notwithstanding any other provision of the Agreement or these Terms and
Conditions to the contrary, if you become permanently disabled before the last day of the Performance Period and while in the active employ of one or more members of the Company Group, then the number of Performance Units issued to you under the
Agreement shall automatically be reduced (without action by you and/or the Company) on the date your employment relationship with the Company terminates to that number of Performance Units determined under the following formula (the
“Disability Adjusted Performance Units”): 
 (1) multiplied by (2) multiplied divided by (3) 

where (1) is the number of Performance Units that were awarded to you under the Agreement, (2) is the number of days from (and
including) the first day of the Performance Period to (and including) the day you become permanently disabled, and (3) is the number of days during the Performance Period. The excess of the Performance Units that were originally awarded to you
under the Agreement over the Disability Adjusted Performance Units shall be immediately forfeited on the date of the termination of your employment relationship with the Company Group due to your becoming permanently disabled. Any amount payable to
you pursuant to this Section 1.3 will be paid on the Scheduled Payment Date. 
 For purposes of this Section 1.3, you will be
“permanently disabled” if you (a) are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, or (b) are, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company Group. 

1.4 Death. Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you die before the
last day of the Performance Period and while in the active employ of one or more members of the Company Group, then the number of Performance Units issued to you under the Agreement shall automatically be reduced (without action by you and/or the
Company) on the date your employment relationship with the Company terminates to that number of Performance Units determined under the following formula (the “Deceased Adjusted Performance Units”): 

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

where (1) is the number of Performance Units that were awarded to you under the Agreement, (2) is the number of days from (and
including) the first day of the Performance Period to (and including) the date of your death, and (3) is the number of days during the Performance Period. The excess of the Performance Units that were originally awarded to you under the
Agreement over the Deceased Adjusted Performance Units shall be immediately forfeited on the date of the termination of your employment relationship with the Company Group due to death. Any amount payable to you pursuant to this Section 1.4
will be paid on the Scheduled Payment Date. Such payment will be 

  
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made in exchange for the Performance Units and thereafter your estate and heirs, executors, administrators shall have no further rights with respect to such Performance Units or the Agreement and
the Company Group will have no further obligations pursuant to the Performance Units or the Agreement. 
 1.5 Retirement.
Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if your employment with the Company Group terminates as a result of your Retirement before the last day of the Performance Period, then the number of
Performance Units issued to you under the Agreement shall automatically be reduced (without further action by you and/or the Company) on the date your employment relationship with the Company Group terminates to that number of Performance Units
determined under the following formula (the “Retirement Adjusted Performance Units”): 
 (1) multiplied by (2) divided
by (3) 
 where (1) is the number of Performance Units that were originally awarded to you under the Agreement, (2) is the number
of days from (and including) the first day of the Performance Period to (and including) the date your employment relationship with the Company Group terminates due to Retirement, and (3) is the number of days during the Performance Period. The
excess of the Performance Units that were originally awarded to you under the Agreement over the Retirement Adjusted Performance Units shall be immediately forfeited on the date of the termination of your employment relationship with the Company
Group due to Retirement. Any amount payable to you pursuant to this Section 1.5 will be paid on the Scheduled Payment Date. For purposes of this Section 1.5, the term “Retirement” means the voluntary termination of your
employment relationship with the Company Group on or after the date on which you are at least 55 years of age (not rounded up) and you have completed at least ten whole years of service with the Company Group (not rounded up). 

 

	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, during the Performance Period or within two years after the date your employment with the Company Group terminates, then your right to receive payment under the Agreement, 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 (i) 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, or (ii) directly or indirectly, consult with or become
affiliated with, conducts, participate or engage in, or becomes employed by, any business that is competitive with the business of any member of the Baker Hughes Group, wherever from time to time conducted throughout the world, including situations
where you solicit or participate in or assist in any way in the solicitation or recruitment, directly or indirectly, of any employees of any member of the Baker Hughes Group. 

  
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	3.	TAX WITHHOLDING. To the extent that the receipt of the Performance Units or any payment pursuant to the Agreement results in income, wages or other compensation to you for any income, employment or other
tax purposes with respect to which the Company has a withholding obligation, you shall deliver to the Company at the time of such receipt or payment, as the case may be, such amount of money as the Company may require to meet its obligation under
applicable tax laws or regulations, and, if you fail to do so, the Company is authorized to withhold from any payment under the Agreement or from any cash or stock remuneration or other payment then or thereafter payable to you any tax required to
be withheld by reason of such taxable income, wages or compensation. 

  

	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 Performance Units shall not affect in any way the right or power of the Company 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.	PERFORMANCE UNITS DO NOT AWARD ANY RIGHTS OF A SHAREHOLDER. You shall not have the voting rights or any of the other rights, powers or privileges of a holder of the stock of the Company with respect to the
Performance Units that are awarded hereby. 

  

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

  

	8.	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 Affiliate or guarantee the right to remain employed by the Company or any Affiliate for any specified term. 

  

	9.	LIMIT OF LIABILITY. Under no circumstances will the Company or an Affiliate 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. 

  

	10.	EMPLOYER LIABLE FOR PAYMENT. Except as specified in Section 1.2, the legal entity that is a member of the Company Group and that is classified by the Company Group as your employer (the
“Employer”) is liable for the payment of any amounts that become due under the Agreement. 

  
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	11.	DATA PRIVACY. The Company’s Human Resources Department in Houston, Texas (U.S.A.) administers and maintains the data regarding the Plan, the awardees and the performance units granted to awardees for all
employees in the Company Group worldwide. 

 The data administered and maintained by the Company includes information that may
be considered personal data, including the name of the awardee, the award granted and the number of performance units included in any award (“Employee Personal Data”). From time to time during the course of your employment in the
Company Group, the Company may transfer certain of your Employee Personal Data to Affiliates as necessary for the purpose of implementation, administration and management of your participation in the Plan (the “Purposes”), and the
Company and its Affiliates may each further transfer your Employee Personal Data to any third parties assisting the Company in the implementation, administration and management of the Plan (collectively, “Data Recipients”). The
countries to which your Employee Personal Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less than that in your home country. 

In accepting the award of the Performance Units set forth in the Agreement, you hereby expressly acknowledge that you understand that from time
to time during the course of your employment in the Company Group the Company may transfer your Employee Personal Data to Data Recipients for the Purposes. You further acknowledge that you understand that the countries to which your Employee
Personal Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less than that in your home country. 

Further, in accepting the award of the Performance Units set forth in the Agreement, you hereby expressly affirm that you do not object, and
you hereby expressly consent, to the transfer of your Employee Personal Data by the Company to Data Recipients for the Purposes from time to time during the course of your employment in the Company Group. 

 

	12.	RECOUPMENTS. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under applicable securities laws, if you are
then a current or former executive officer of the Company you shall forfeit and must repay to the Company any compensation awarded under the Agreement to the extent specified in any of the Company’s compensation recoupment policies established
or amended (now or in the future) in compliance with the rules and standards of the Securities and Exchange Commission Committee under or in connection with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Further,
if the Company is required to prepare an accounting restatement due in whole or in part to your misconduct, you shall forfeit and must repay to the Company any compensation awarded under the Agreement to the extent required by the Board of Directors
of the Company in accordance with the terms of the Company’s compensation recoupment policy as in effect on January 23, 2014. 

  

	13.	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 terms “you” and “your” refer to the Participant 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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