0000950129-06-002136 Sample Contracts

BAKER HUGHES INCORPORATED PERFORMANCE UNIT AWARD AGREEMENT Name Awardee
Baker Hughes Inc • March 1st, 2006 • Oil & gas field machinery & equipment

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 awardee, effective as of the Date of Award set forth above, 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”).

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BAKER HUGHES INCORPORATED RESTRICTED STOCK AWARD AGREEMENT Awardee
Restricted Stock Award Agreement • March 1st, 2006 • Baker Hughes Inc • Oil & gas field machinery & equipment

The Board of Directors (the “Board”) 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 awardee, effective as of the Date of Award set forth above (the “Date of Award”), that number of shares (the “Shares”) of the Company’s Common Stock, $1.00 par value per share (the “Common Stock”), set forth above as Restricted Stock on the following terms and conditions:

BAKER HUGHES INCORPORATED STOCK OPTION AGREEMENT Grantee
Stock Option Agreement • March 1st, 2006 • Baker Hughes Inc • Oil & gas field machinery & equipment

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 grants to you, the above-named Grantee, effective as of the Date of Grant set forth above, nonqualified stock option to purchase the total number of shares set forth above of the Company’s $1 par value per share common stock at the exercise price set forth above for each share subject to this option, subject to adjustment as provided in the Plan. The option is exercisable in installments in accordance with the Vesting Schedule set forth above with the exercise price payable at the time of exercise. To the extent not exercised, installments shall be cumulative and may be exercised in whole or in part until the option terminates. This option may not be exercised after the Expiration Date.

November 1, 2005 Mr. G. Stephen Finley 3011 N. Cotswold Manor Drive Kingwood, TX 77339 Dear Steve:
Baker Hughes Inc • March 1st, 2006 • Oil & gas field machinery & equipment • Texas

As we have agreed, your employment with Baker Hughes Incorporated (hereinafter referred to as (“Company”) will terminate on the date of your retirement. The purpose of this letter (the “Agreement”) is to set forth certain agreements and understandings regarding, among other things:

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