Erisa Excess Benefit Plan

DRESSER, INC. ERISA EXCESS BENEFIT PLAN


EFFECTIVE APRIL 10, 2001


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DRESSER, INC. ERISA
EXCESS BENEFIT PLAN


WHEREAS, the Company entered into the Agreement and Plan of Recapitalization, among Halliburton Company, Dresser B.V., and DEG Acquisitions, LLC, dated January 30, 2001, including any amendments to such agreement, as executed in final form on April 10, 2001 (the "Agreement");


WHEREAS, pursuant to the Agreement, the Company assumed liabilities under the nonqualified deferred compensation plan known as the ERISA Excess Benefit Plan for Dresser Industries, Inc. ("Prior Excess Plan") with respect to "Continued Employees," as defined by the Agreement;


WHEREAS, the Company wishes to establish a nonqualified deferred compensation plan to reflect such assumed liabilities, provide continued earnings, and make payment of the liabilities;


WHEREAS, pursuant to the Agreement, the Company established a tax-qualified defined contribution plan including a qualified cash or deferred arrangement entitled the Dresser, Inc. Retirement and Savings Plan (the "DC Plan");


WHEREAS, the Company wishes to allow employees to defer amounts, if any, that cannot be contributed to the DC Plan solely because of the limitations of Code section 415, including Pension Equalizer Contributions, if any;


NOW, THEREFORE, the Company hereby adopts the Plan by statement, effective April 10, 2001, to read as follows:


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TABLE OF CONTENTS


ARTICLE PAGE - ------- ---- ARTICLE 1 Definitions...................................................................................4
Section 1.1 Accrued Benefit...............................................................................4
Section 1.2 Act...........................................................................................4
Section 1.3 Agreement.....................................................................................4
Section 1.4 Board.........................................................................................4
Section 1.5 Code..........................................................................................4
Section 1.6 Committee.....................................................................................4
Section 1.7 Company.......................................................................................4
Section 1.8 DC Account....................................................................................5
Section 1.9 DC Plan.......................................................................................5
Section 1.10 Effective Date................................................................................5
Section 1.11 Employee......................................................................................5
Section 1.12 Grandfathered 1998 Benefits...................................................................5
Section 1.13 Participant...................................................................................5
Section 1.14 Pension Equalizer Contributions...............................................................5
Section 1.15 Plan..........................................................................................5
Section 1.16 Plan Year.....................................................................................6
Section 1.17 Prior Excess Plan.............................................................................6
Section 1.18 Vesting Service...............................................................................6 ARTICLE 2 Purpose of Plan...............................................................................6
Section 2.1 Purpose.......................................................................................6
Section 2.2 Excess Benefit Plan...........................................................................6 ARTICLE 3 Eligibility...................................................................................7
Section 3.1 Eligibility...................................................................................7 ARTICLE 4 Benefits......................................................................................7
Section 4.1 Amount of Benefits............................................................................7
Section 4.2 DC Plan-Related Benefits......................................................................7
Section 4.3 Form of Payment of DC Account.................................................................8
Section 4.4 Interest on Installment Payments..............................................................8
Section 4.5 Death Before All Payments Made................................................................8
Section 4.6 Time of Benefit Payments......................................................................9
4.7 Plan Termination........................................................................................9 ARTICLE 5 Vesting and Forfeiture........................................................................9
Section 5.1 Vesting.......................................................................................9
Section 5.2 Terminations for Cause........................................................................9 ARTICLE 6 Administration...............................................................................10


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Section 6.1 Duties of Committee..........................................................................10
Section 6.2 Construction.................................................................................10
Section 6.3 Consequence of Committee Actions.............................................................10 ARTICLE 7 Claims and Appeal Procedures.................................................................11
Section 7.1 Claims Review................................................................................11
Section 7.2 Appeals Review...............................................................................11
Section 7.3 Mandatory Arbitration........................................................................12 ARTICLE 8 Amendment and Termination....................................................................13
Section 8.1 Power to Amend or Terminate..................................................................13
Section 8.2 No Reduction in Accrued Benefits.............................................................13 ARTICLE 9 Miscellaneous................................................................................14
Section 9.1 No Employment Rights.........................................................................14
Section 9.2 Assignment of Benefits.......................................................................14
Section 9.3 Nonduplication of Benefits...................................................................14
Section 9.4 Funding......................................................................................15
Section 9.5 Law Applicable...............................................................................15
Section 9.6 Actions by Committee.........................................................................15
Section 9.7 Plan Representatives.........................................................................16
Section 9.8 Number and Gender............................................................................16
Section 9.9 Headings.....................................................................................16 APPENDIX A Grandfathered 1998 Benefits..................................................................17
Section A.1 In General...................................................................................17


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ARTICLE I
Definitions


The following terms when used and capitalized in the Plan shall have the following meanings:


Section 1.1. Accrued Benefit. The benefit to which a Participant is entitled at a particular time pursuant to Article IV of the Plan.


Section 1.2. Act. The Employee Retirement Income Security Act of 1974, as amended.


Section 1.3. Agreement. Agreement and Plan of Recapitalization, among Halliburton Company, Dresser B.V., and DEG Acquisitions, LLC, dated January 30, 2001, including any amendments to such agreement, as executed in final form on April 10, 2001.


Section 1.4. Board. The Board of Directors of Dresser, Inc.


Section 1.5. Code. The Internal Revenue Code of 1986, as amended.


Section 1.6. Committee. The Dresser, Inc. Benefits Committee.


Section 1.7. Company. Dresser, Inc. and any other entity related to Dresser, Inc. under the rules of section 414 of the Code. This includes Dresser, Inc. and its 50%-owned subsidiaries and may include other entities as well.


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Section 1.8. DC Account. A bookkeeping account established and maintained by the Company for each Participant to which amounts are credited pursuant to Section 4.3.


Section 1.9. DC Plan. The Dresser, Inc. Retirement and Savings Plan, effective April 10, 2001.


Section 1.10. Effective Date. April 10, 2001.


Section 1.11. Employee. An individual who is reported on the payroll records of the Company as a common law employee. In particular, it is expressly intended that individuals not treated as common law employees by the Company on its payroll records are to be excluded from Plan participation even if a court or administrative agency determines that such individuals are common law employees and not independent contractors.


Section 1.12. Grandfathered 1998 Benefits. To the extent assumed by the Company with respect to "Continued Employees," as defined in the Agreement, benefits payable by Halliburton Company under the Prior Excess Plan representing accrued benefits under that plan as of December 31, 1998.


Section 1.13. Participant. An individual who has an Accrued Benefit under the Plan.


Section 1.14. Pension Equalizer Contributions. Pension Equalizer Contributions, as defined in the DC Plan.


Section 1.15. Plan. The "Dresser, Inc. ERISA Excess Benefit Plan," as set forth herein.


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Section 1.16. Plan Year. The calendar year.


Section 1.17. Prior Excess Plan. The ERISA Excess Benefit Plan of Dresser Industries, Inc., as maintained by Halliburton Company in effect immediately before the Effective Date.


Section 1.18. Vesting Service. Service used under the DC Plan to determine whether a participant is vested in his or her employer matching contributions.


ARTICLE 2
Purpose of Plan


Section 2.1. Purpose. The purpose of the Plan is simply to restore to employees of the Company benefits they lose under the Company's tax-qualified plans and as a result of the limits in Code section 415, as amended, or any successor section. More specifically, the Plan:


(a) Permits employees participating in the DC Plan to defer compensation, if any, that they could not contribute to the DC Plan,


(b) Pays benefits attributable to Pension Equalizer Contributions, if any, that cannot be made by the Company to the DC Plan, and


(c) Pays Prior Excess Plan Benefits not payable under a tax qualified plan, solely because of the limitations of Code section 415.


Section 2.2. Excess Benefit Plan. The Plan is an excess benefit plan as defined in section 3(36) of the Act. For additional details about funding matters, see Section 9.4.


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ARTICLE 3
Eligibility


Section 3.1. Eligibility. An Employee is eligible to participate in the Plan if:


(a) his or her contribution ...