| 5. |
|
Insurance coverage available to you upon date of employment will include a choice
of several levels of medical and dental insurance, including vision care, as well as
life, accidental death and dismemberment, short- and long-term disability and
business travel accident insurance. |
| |
| 6. |
|
Vacation is advanced to each employee’s vacation bank each January 1, the
beginning of the fiscal year. You will be eligible for four (4) weeks of vacation in
2001. |
| |
| 7. |
|
You will be eligible for a perquisite bank in the amount of $15,000.00, which entitles
you to a choice of executive perquisites in accordance with this program’s guidelines.
A copy of the policy covering the perquisite program is enclosed. |
| |
| 8. |
|
You will be covered by the Company’s Executive Severance Policy, which covers all
U.S. based executives. Its purpose is to provide executives, who are terminated for
specific reasons, an income for a fixed period of time while actively looking for other
employment. |
| |
| 9. |
|
As an inducement to accept this offer, and subject to you becoming employed at
BHI, you will be granted a stock option for 25,000 shares of BHI common stock.
This option grant is subject to the approval of the Compensation Committee of the
BHI Board of Directors. The strike price per share for the shares covered by this
option grant will be the market price per share of BHI common stock on the date of
the grant, which will be the date upon which the grant is approved by the
Compensation Committee. This option will vest as follows: 33-1/3% will vest on the
one year anniversary date of this option grant, 33-1/3% will vest on the two year
anniversary of this option grant and the remaining 33-1/3% will vest on the third year
anniversary of this option grant. The option will have a term of ten years, subject to
the terms of the BHI Stock Option Plan. |
| |
| 10. |
|
Because you will be President of Baker Petrolite, you will be required to own
common stock in Baker Hughes, Inc. equal to two times base salary within five years
from the date of your employment. Subject to approval of the Compensation
Committee of the Board, effective March 1, 2002, you will receive a one-time grant
of restricted common stock of the Company equal to the number of shares of common
stock of the Company that you own on March 1, 2002, not to exceed 25, 000 shares.
Vesting of these restricted shares will occur upon retirement from the Company,
involuntary termination (unless due to cause), permanent disability or death and is
subject to other terms and conditions of the grant. Retirement for this purpose means
attaining age 55 with at least 10 years of service with the Company. On the first day
of employment, you will be credited with five years of service for purposes of this
program. |
