Document:

Exhibit 10.3

 

 

BAKER
HUGHES INCORPORATED

 

PERFORMANCE
BASED RESTRICTED STOCK UNIT AWARD AGREEMENT

 

AWARD
OF PERFORMANCE BASED RESTRICTED STOCK UNITS

 

PAYABLE
IN SHARES 

 

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, effective as of [Grant Date] (the “Grant Date”),
a certain number of performance based restricted stock units (the “Target Number of Performance Based Restricted Stock
Units”), in each case, as set forth in your Plan account maintained by Fidelity Stock Plan Services ( each, a “Performance
Based Restricted Stock Unit” and collectively, the “Performance Based Restricted Stock Units”), on
the terms and conditions specified below and in the attached Terms and Conditions of Performance Based Restricted Stock Unit Award
Agreements (the “Terms and Conditions”).

 

Each
Performance Based Restricted Stock Unit provides you an opportunity to earn a payment in shares of the Company’s Common
Stock, $1.00 par value per share, or, in the event of the consummation of the transactions (the “Merger”) contemplated
by the Transaction Agreement and Plan of Merger entered into as of October 30, 2016 among General Electric Company, the Company,
Bear MergerSub, Inc. and Bear Newco, Inc.  (the “GE Agreement”) one share
of Class A Common Stock as defined in the GE Agreement (in either case, the “Common Stock”), in exchange for
such Performance Based Restricted Stock Unit based upon the achievement of certain performance goals established by the Committee
(the “Performance Goals”). The Performance Goals, the applicable performance periods and the formulas for determining
the amounts payable under this Agreement based upon the achievement of performance goals are specified in a written document established
by the Compensation Committee (the “Performance Goals Document”) that is available for your review on the Baker
Hughes Direct website at www.bakerhughesdirect.com.

 

The
Performance Based Restricted Stock Units that are awarded hereby to you will be subject to the prohibitions and restrictions set
forth herein with respect to the sale or other disposition of such Performance Based Restricted Stock Units and the obligation
to forfeit and surrender such Performance Based Restricted Stock Units to the Company (the “Forfeiture Restrictions”).

 

If
the Performance Goals are not achieved at a minimum level of performance and neither a Change in Control of the Company nor the
consummation of the Merger has occurred on or before December 31, 2019, then the award pursuant to this Agreement will lapse and
be forfeited as of December 31, 2019.

 

The
Target Number of Performance Based Restricted Stock Units reflected in your Plan account maintained by Fidelity Stock Plan Services
is the number of Performance Based Restricted Stock Units that you may earn if the Performance Goals are achieved at the target
level of performance. The actual number of Performance Based Restricted Stock Units you may.

 

 

     

     

    

 

earn
may be less than or more than the Target Number of Performance Based Restricted Stock Units, depending upon actual performance,
as specified in the Performance Goals Document.

 

If
a Change in Control of the Company occurs, or the Merger is consummated, or you incur a Termination of Employment before the third
anniversary of the Grant Date, your rights to the Performance Based Restricted Stock Units under this Agreement will be determined
as provided in the Terms and Conditions.

 

If
you earn a Performance Based Restricted Stock Unit awarded hereby due to the achievement of the Performance Goals or if the Forfeiture
Restrictions applicable to a Performance Stock Unit awarded hereby lapse under the Terms and Conditions, then on March 13, 2020,
or upon the earlier date of lapse of the Forfeiture Restrictions under the Terms and Conditions, the Company will issue to you
one share of the Company’s Common Stock, $1.00 par value per share, or, in the event of the consummation of the Merger one
share of Class A Common Stock as defined in the GE Agreement (in either case, the “Common Stock”), in exchange
for such Performance Based Restricted Stock Unit and thereafter you will have no further rights with respect to such Performance
Based Restricted Stock Unit. Such shares of the Common Stock will be transferable by you (except to the extent that any proposed
transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of applicable federal or state securities
law).

 

If
during the period you hold any Performance Based Restricted Stock Units awarded hereby the Company or Bear Newco, Inc., a Delaware
corporation and direct wholly owned subsidiary of the Company declares a dividend in cash with respect to the outstanding shares
of the Common Stock (a “Cash Dividend”), then the Company will credit to an account established for you by the Company
under the Plan (the “Account”) an amount equal to the product of (a) the Performance Based Restricted Stock Units
awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock as of the
record date for the Cash Dividend and (b) the amount of the Cash Dividend paid per share of the Common Stock (the “Dividend
Equivalent Credit”). The Company will pay to you, in cash, an amount equal to the Dividend Equivalent Credits credited to
the Account with respect to a Performance Based Restricted Stock Unit on the date the Forfeiture Restrictions applicable to that
Performance Based Restricted Stock Unit lapse, or, if the Forfeiture Restrictions applicable to that Performance Based Restricted
Stock Unit lapse prior to the date of payment of the Cash Dividend, the date on which the Cash Dividend is paid (and in no case
later than the end of the calendar year in which the Forfeiture Restrictions applicable to that Performance Based Restricted Stock
Unit lapse or, if later, the 15th day of the third month following the date the Forfeiture Restrictions applicable to that Performance
Based Restricted Stock Unit lapse). For the avoidance of doubt, if the Merger is consummated, any Dividend Equivalent Credit provided
under this Agreement with respect to a Cash Dividend, including with respect to the special dividend of $17.50 per share of Class
A Common Stock contemplated in the GE Agreement, will be based upon the Target Number of Performance Based Restricted Stock Units
awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock as of the
record date for the Cash Dividend.

 

If
during the period you hold any Performance Based Restricted Stock Units awarded hereby the Company pays a dividend in shares of
the Common Stock with respect to the outstanding shares of the Common Stock, then the Company will increase the Performance Based
Restricted Stock Units awarded hereby that have not then been exchanged by the

 

     

     

    

 

Company
for shares of the Common Stock by an amount equal to the product of (a) the Performance Based Restricted Stock Units awarded
hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock and (b) the
number of shares of the Common Stock paid by the Company per share of the Common Stock (collectively, the “Stock Dividend
Performance Based Restricted Stock Units”). Each Stock Dividend Performance Based Restricted Stock Unit will be subject
to the same forfeiture restrictions, performance conditions and other restrictions, limitations and conditions applicable to the
Performance Based Restricted Stock Unit for which such Stock Dividend Performance Based Restricted Stock Unit was awarded and
will be exchanged for shares of the Common Stock at the same time and on the same basis as such Performance Based Restricted Stock
Unit. For the avoidance of doubt, if the Merger is consummated, any increase in the Performance Based Restricted Stock Units that
is effected to reflect a dividend in shares of the Common Stock will be based upon the Target Number of Performance Based Restricted
Stock Units awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock
as of the payment date of the dividend payable in shares of Common Stock.

 

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

 

Any
shares of the Common Stock issued to you in exchange for Performance Based Restricted Stock Units awarded hereby may not be sold
or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws. You
also agree that the Company may refuse to transfer any such shares of the Common Stock if such proposed transfer would in the
opinion of counsel satisfactory to the Company constitute a violation of any applicable federal or state securities law.

 

The
shares of Common Stock that may be issued under the Plan are registered with the Securities and Exchange Commission under a Registration
Statement on Form S-8. A Prospectus describing the Plan and the shares of Common Stock and the Terms and Conditions can be found
on the Fidelity Stock Plan Services website at www.netbenefits.fidelity.com. You may also
obtain a copy of the Plan Prospectus by requesting it from the Company.

 

Capitalized
terms that are not defined herein will have the meaning ascribed to such terms in the Plan or the Terms and Conditions; provided
that the term “Change in Control of the Company” has the meaning ascribed to that term in the Terms and
Conditions.

 

The
Committee may not increase the amount payable under this Agreement.

 

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

 

     

     

    

 

 

	 	BAKER HUGHES
INCORPORATED
	 	 
	 	 
	 	Martin S. Craighead
	 	Chairman and Chief Executive
Officer

 

 

     

     

    

BAKER
HUGHES INCORPORATED

 

TERMS
AND CONDITIONS

OF

PERFORMANCE BASED RESTRICTED STOCK UNIT AWARD AGREEMENTS

 

GRANTED
AFTER OCTOBER 30, 2016

 

These
Terms and Conditions are applicable to a performance based restricted stock unit award granted pursuant to the Baker Hughes Incorporated
2002 Director & Officer Long-Term Incentive Plan (the “Plan”) after
October 30, 2016 and are incorporated as part of the Performance Based Restricted Stock Unit Award Agreement setting forth the
terms of such performance based restricted stock unit award (the “Agreement”).

 

		1.	TERMINATION
                                         OF EMPLOYMENT/CHANGE IN CONTROL. The following
                                         provisions will apply in the event your employment with the Company and all affiliates
                                         as defined in Section 16 below (collectively, the “Company Group”)
                                         terminates (a “Termination of Employment”), or a Change in Control
                                         of the Company occurs or the Merger is consummated, before the third anniversary of the
                                         Grant Date (the “Third Anniversary Date”) under the Agreement:

 

1.1       Termination
Generally. If you incur a Termination of Employment on or before the Third Anniversary Date for any reason other than one
of the reasons described in Sections 1.2 through 1.6 below, the Forfeiture Restrictions then applicable to the Performance
Based Restricted Stock Units will not lapse and the number of Performance Based Restricted Stock Units then subject to the Forfeiture
Restrictions will be forfeited to the Company on the date of your Termination of Employment.

 

1.2       Change
in Control of the Company.

 

(i)       Definition
of Change in Control of the Company. Except as set forth in the immediately following sentence, for purposes of these Terms
and Conditions, “Change in Control of the Company” has the meaning ascribed to that term in the Plan. Notwithstanding
any other provision of (1) these Terms and Conditions (but subject to Section 1.5), (2) the Plan, (3) any change in control arrangement
that covers you, or (4) any other document or arrangement, solely for purposes of the Agreement and these Terms and Conditions
(but subject to Section 1.5), the term “Change in Control of the Company” shall not include the consummation
of any of the transactions contemplated by the GE Agreement.

 

(ii)       
Termination of Employment Does Not Occur Before a Change in Control of the Company on or Before the Third Anniversary Date.
If a Change in Control of the Company occurs on or before the Third Anniversary Date and you do not incur a Termination of Employment
before the date the Change in Control of the Company occurs, then all remaining Forfeiture Restrictions will lapse as to the Target
Number of Performance Based Restricted Stock Units at the time the Change in Control of the Company occurs.
For the avoidance of doubt, for this purpose a Change in Control of the Company does not include the consummation of any of the
transactions contemplated by the GE 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 Third Anniversary Date and while in the active employ of one or more members of the Company Group, the Forfeiture
Restrictions will immediately lapse as to the Target Number of Performance Based Restricted Stock Units on the date of your Termination
of Employment due to your becoming permanently disabled. 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 twelve (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 twelve (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 Third
Anniversary Date and while in the active employ of one or more members of the Company Group, the Forfeiture Restrictions will
immediately lapse as to the Target Number of Performance Units on the date of your Termination of Employment due to death.

 

1.5       Consummation
of the Merger. Upon the consummation of the Merger, the performance-based vesting conditions applicable to the Agreement shall,
effective as of the Grant Date, cease to apply to any of the Performance Based Restricted Stock Units awarded under the Agreement
and on the Third Anniversary Date the Forfeiture Restrictions will lapse as to the Target Number of Performance Based Restricted
Stock Units provided that, subject to Sections 1.3, 1.4 and 1.6, your Termination of Employment
has not occurred prior to the Third Anniversary Date.

 

1.6       Involuntary
Termination of Employment Within One-Year Period Commencing on the Closing Date. Notwithstanding any other provision of the
Agreement or these Terms and Conditions to the contrary, if you incur an Involuntary Termination of Employment within the one-year
period commencing on the Closing Date as defined in the GE Agreement (the “Closing
Date”), the Forfeiture Restrictions will immediately lapse as to the Target Number of Performance Based Restricted Stock
Units on the date of your Involuntary Termination of Employment. For purposes of this Section 1.6, “Involuntary Termination
of Employment” means your Termination of Employment that results from your termination of employment by the Company
or its affiliate without “cause” as defined below or your resignation for “good reason” as defined below.
For purposes of these Terms and Conditions, the term “cause” has the meaning assigned to it (or term of like
import) in the applicable severance plan, program, agreement or arrangement of the Company or any of its Subsidiaries (as defined
in the GE Agreement) under which you are covered immediately prior to the Closing Date (as in effect immediately prior to the
Closing Date) or, if there is no such arrangement that covers you immediately prior to the Closing Date or if such arrangement
does not define the term cause, “cause” means (i) your willful and continued failure to substantially perform
your duties with the Company or its affiliate (other than such failure resulting from your incapacity due to physical or mental
illness) or (ii) your willful engaging in

 

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conduct
that is demonstrably and materially injurious to the Company or its affiliate, monetarily or otherwise. For purposes of these
Terms and Conditions, the term “good reason” has the meaning assigned to it (or term of like import) in the
applicable severance plan, program, agreement or arrangement of the Company or any of its Subsidiaries under which you are covered
immediately prior to the Closing Date (as in effect immediately prior to the Closing Date), or, if there is no such arrangement
that covers you immediately prior to the Closing Date or if such arrangement does not define the term good reason, “good
reason” means the occurrence (without your express written consent) of either of the following acts by the Company or
its affiliate, unless, in the case of an act described in clause (a) below, such act is corrected prior to your Termination of
Employment for good reason: (a) a reduction by the Company or its affiliate in your annual base compensation as in effect on the
Grant Date or as it may be increased from time to time, except for across-the-board salary reductions similarly affecting all
individuals having a similar level of authority and responsibility with the Company or its affiliate or (b) the relocation of
your principal place of employment to a location outside of a 30-mile radius from your principal place of employment immediately
prior to the Closing Date or the Company’s or its affiliate’s requiring you to be based anywhere other than such principal
place of employment (or permitted relocation thereof) except for required travel on the Company’s or its affiliate’s
business to an extent substantially consistent with your business travel obligations immediately prior to the Closing Date.

 

		2.	PROHIBITED
                                         ACTIVITY. Notwithstanding any other provision
                                         of these Terms and Conditions or the Agreement, if you engage in a “Prohibited
                                         Activity,” as described below, while employed by one or more members of the Company
                                         Group or within two years after the date of your Termination of Employment, then your
                                         right to receive the shares of the Common Stock, to the extent still outstanding at that
                                         time, will be completely forfeited. A “Prohibited Activity” will be
                                         deemed to have occurred, as determined by the Committee in its sole and absolute discretion,
                                         if you divulge any non-public, confidential or proprietary information of the Company
                                         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 the date of your Termination of Employment
                                         from a source other than a member of the Company Group prior to the public use or disclosure
                                         by you, provided that such source is not bound by a confidentiality agreement
                                         or otherwise prohibited from transmitting the information by a contractual, legal or
                                         fiduciary obligation.

 

		3.	TAX
                                         WITHHOLDING. To the extent that the receipt
                                         of the Performance Based Restricted Stock Units or the lapse of any Forfeiture Restrictions
                                         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, the Company
                                         is authorized to withhold from any shares of Common Stock issued 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
                                         including (without limitation) shares of the Common Stock sufficient to satisfy the withholding
                                         obligation.

 

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

 

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

 

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

 

		10.	LIMIT
                                         OF LIABILITY. Under no circumstances will the
                                         Company or any 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.

 

		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 restricted stock 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

 

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number
of restricted 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 Based Restricted Stock 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 Based Restricted Stock 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 will 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 will 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.	OTHER
                                         AGREEMENTS. Nothing in these Terms and Conditions
                                         is intended to reduce the Company’s protections or your obligations under (1) any
                                         other agreement between you and the Company or any other member of the Company Group,
                                         (2) the common law, or (3) any applicable state, federal or foreign statute.

 

		14.	GOVERNING
                                         LAW AND VENUE. The Plan, these Terms and Conditions
                                         and the award of the performance based restricted stock units set forth in the Agreement
                                         shall be governed by the laws of the State of Texas, excluding any conflicts or choice
                                         of law rule or principle that might otherwise refer construction or interpretation of
                                         the Plan, these

 

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Terms
and Conditions and the award of the performance based restricted stock units to the substantive law of another jurisdiction. In
accepting the award of the performance based restricted stock units you are deemed to agree to submit to the exclusive jurisdiction
and venue of the federal or state courts of Harris County, Texas, to resolve any and all issues that may arise out of or relate
to the Plan, these Terms and Conditions and the award of the performance based restricted stock units.

 

		15.	SEVERABILITY
                                         AND BLUE PENCILING. If any single Section or
                                         clause of these Terms and Conditions should be found unenforceable, it shall be severed
                                         and the remaining Sections and clauses of these Terms and Conditions shall be enforced
                                         in accordance with the intent of these Terms and Conditions. If any particular provision
                                         of these Terms and Conditions shall be adjudicated to be invalid or unenforceable, the
                                         Company and you specifically authorize the court making such determination to edit the
                                         invalid or unenforceable provision to allow these Terms and Conditions, and the provisions
                                         thereof, to be valid and enforceable to the fullest extent allowed by law or public policy.

 

		16.	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 (subject to Sections 1.2
                                         and 1.5) will control. The terms “you” and “your”
                                         refer to the Participant named in the Agreement. Capitalized terms that are not defined
                                         herein will have the meanings ascribed to such terms in the Plan or the Agreement. The
                                         Company’s rights under these Terms and Conditions and the Agreement may be assigned
                                         by the Company. For purposes of these Terms and Conditions other than Section 9 above,
                                         the term “affiliate” means any entity that, directly or indirectly,
                                         controls, or is controlled by, or is under common control with, the Company. For the
                                         avoidance of doubt, from and after the Closing Date, the term “affiliate”
                                         will include General Electric Company and any entity that, directly or indirectly, controls,
                                         or is controlled by, or is under common control with, General Electric Company.

 

    6Exhibit 10.4

PERFORMANCE GOALS

FOR PERFORMANCE BASED RESTRICTED STOCK UNIT AWARDS GRANTED IN 2017 UNDER

THE BAKER HUGHES INCORPORATED 2002 DIRECTOR & OFFICER

LONG-TERM INCENTIVE PLAN AND THE BAKER HUGHES INCORPORATED 2002 EMPLOYEE LONG-TERM INCENTIVE PLAN

 

		1.	2017 Performance Based Restricted Stock Unit Program Overview

 

The Performance Based
Restricted Stock Unit Program, a component compensation program established under the Baker Hughes Incorporated 2002 Director &
Officer Long-Term Incentive Plan and the Baker Hughes Incorporated 2002 Employee Long-Term Incentive Plan (the “2017 PRSUP”),
provides for equity awards for participants if certain performance goals are met during the term of the 2017 PRSUP.

 

The performance goals
are related to the Company’s achievement as compared to a peer group of companies. Achievement of the performance goals is
measured over multiple performance periods from the beginning of 2017 to the end of 2019. The amount of a Participant’s Final
Adjusted Units is determined by multiplying the number of Performance Based Restricted Stock Units awarded to the Participant under
a Performance Based Restricted Stock Unit 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 2017, 2018, and 2019. The final twenty-five percent of the Total Unit
Modifier is calculated at the end of 2019 based upon the cumulative performance of the Company over the three-year performance
period 2017 through 2019.

 

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		2.	Performance Goals for the Performance Period

 

For purposes of determining
the amount of a Participant’s Final Adjusted Units under the 2017 PRSUP, 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 2017 Performance Period, the 2018 Performance Period and the 2019 Performance Period, the Company’s One
Year Interval Percentage Increase in Revenue for its 2017, 2018 and 2019 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 2017 Performance Period, the 2018 Performance Period and the 2019 Performance Period, the Company’s
ROCE for its 2017, 2018 and 2019 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 2017 Performance Period,
the 2018 Performance Period and the 2019 Performance Period, the Company’s One Year Interval Percentage Increase in ROCE
for its 2017, 2018 and 2019 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, 2019.

 

Return
on Capital Employed. For the Three-Year Performance Period, the sum of the ROCE of the Company for the 2017 Performance Period,
the 2018 Performance Period and the 2019 Performance Period shall be compared against the sum of the ROCE

 

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for each member
of the Peer Group for the 2017 Performance Period, the 2018 Performance Period and the 2019 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, 2019.

 

		3.	Payout Percentage Adjustments Based on Peer Group Ranking

 

For the Revenue Growth
metric, the Payout Percentage for an applicable performance period (the 2017 Performance Period, the 2018 Performance Period, the
2019 Performance Period or the Three-Year Performance Period) for each of the three performance goals is 25% times the payout percentage
listed below.

 

	2017, 2018, 2019, and Three-Year Performance Period
	Peer Group Rank in Revenue Growth	5th	4th	3rd	2nd	1st
	Payout Percentage	0%	45%	90%	135%	200%

 

    4 

     

    

The 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
Payout Percentages for the Revenue Growth and ROCE performance for a performance period is used to determine the Average Payout
Percentage for the performance period.

 

The sum of the Average
Payout Percentages is the “Total Unit Modifier.”

 

The Participant’s
Performance Based Restricted Stock Units multiplied by the Total Unit Modifier equals the Participant’s Final 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 Payout Percentage based upon the performance in Year 1 is 16.88%. The sum of the Average 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.

 

    5 

     

    

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.

 

For Example:

 

The total award earned
is calculated by multiplying the number of Performance Based Restricted Stock Units granted by the Total Unit Modifier. The resulting
product, 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 Performance Based Restricted Stock Units

 

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

 

The total award earned
= 10,000 x 111.26% = 11,126 Performance Based Restricted Stock Units

 

4.       Peer
Group

 

The Peer Group is as
follows for the performance periods ending in 2017, 2018, and 2019, 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.

 

5.       General
Performance Based Restricted Stock Unit Formula

 

Except as otherwise
specified in the Terms and Conditions, the aggregate amount payable to a Participant for a Performance Based Restricted Stock Unit
Award granted in 2017 under the Plan or the shall be equal to the number of Performance Based Restricted Stock Units granted to
the Participant multiplied by the Total Unit Modifier.

 

    6 

     

    

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

 

Subject to the terms
of the Plan, the Performance Based Restricted Stock 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 Based Restricted
Stock 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

 

The Compensation Committee
may not increase the Final Performance Based Restricted Stock Unit Award Modifier for, or otherwise increase the aggregate amount
payable to a Participant for the performance period under, a Performance Based Restricted Stock Unit Award Agreement issued by
BHI in 2017 under the 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 Based
Restricted Stock Unit Award Agreements issued by Baker Hughes Incorporated (“BHI”) in 2017 under the Baker Hughes
Incorporated 2002 Director & Officer Long-Term Incentive Plan and the Baker Hughes Incorporated 2002 Employee Long-Term Incentive
Plan,, the terms set forth below shall have the following meanings:

 

“Average 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.

 

    7 

     

    

“Company”
means BHI and all of its Affiliates in which BHI directly or indirectly has a capital investment.

 

“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.

 

“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 Based Restricted Stock Unit Award is granted.

 

“Peer Group”
means the group identified in Section 4.

 

“Performance
Based Restricted Stock Units” means the number of performance-based restricted stock units listed in the Participant’s
agreement evidencing his or her Performance Based Restricted Stock Unit Award.

 

“Performance
Based Restricted Stock Unit Award” means a Performance Based Restricted Stock Unit Award granted under the Plan in 2017.

 

“Plan”
means the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan or the Baker Hughes Incorporated 2002
Employee Long-Term Incentive Plan, as applicable.

 

“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.

 

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

 

    8 

     

    

“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 13, 2020 or such earlier time as may be applicable under the Terms and Conditions.

 

“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, 2017, and ending December 31, 2019.

 

“Terms and
Conditions” means the Terms and Conditions of Performance Based Restricted Stock Unit Award Agreements adopted by the
Compensation Committee with respect to Performance Based Restricted Stock Unit Awards.

 

“TOTAL Unit
Modifier” means the sum of the Average Payout Percentages for the 2017 Performance Period, the 2018 Performance Period,
the 2019 Performance Period and the Three-Year Performance Period.

 

“2017 Performance
Period” means the one-year period beginning January 1, 2017, and ending December 31, 2017.

 

“2018 Performance
Period” means the one-year period beginning January 1, 2018, and ending December 31, 2018.

 

“2019 Performance
Period” means the one-year period beginning January 1, 2019, and ending December 31, 2019.

 

    9

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