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ANNEX฀C
BAKER฀HUGHES฀INCORPORATED฀
GUIDELINES฀FOR฀MEMBERSHIP฀ON฀THE฀฀
BOARD฀OF฀DIRECTORS
These฀Guidelines฀set฀forth฀the฀policies฀of฀the฀Board฀of฀
Directors฀(“Board”)฀of฀Baker฀Hughes฀Incorporated฀(“Com-
pany”)฀regarding฀Board฀membership.฀These฀Guidelines฀shall฀be฀
implemented฀by฀the฀Governance฀Committee฀of฀the฀Board฀with฀
such฀modifications฀as฀it฀deems฀appropriate.฀The฀Governance฀
Committee฀will฀consider฀candidates฀based฀upon:
•฀ The฀size฀and฀existing฀composition฀of฀the฀Board
•฀ The฀number฀and฀qualifications฀of฀candidates
•฀ The฀benefit฀of฀continuity฀on฀the฀Board
•฀ The฀relevance฀of฀the฀candidate’s฀background฀and฀experience฀
to฀issues฀facing฀the฀Company.
1.฀Criteria฀for฀Selection
In฀filling฀director฀vacancies฀on฀the฀Board,฀the฀Governance฀
Committee฀will฀strive฀to:
(A)฀ Recommend฀candidates฀for฀director฀positions฀who฀will฀help฀
create฀a฀collective฀membership฀on฀the฀Board฀with฀varied฀
experience฀and฀perspective฀and฀who:
i)฀ Have฀demonstrated฀leadership,฀and฀significant฀experi-
ence฀in฀an฀area฀of฀endeavor฀such฀as฀business,฀finance,฀
law,฀public฀service,฀banking฀or฀academia;
ii)฀ Comprehend฀the฀role฀of฀a฀public฀company฀director,฀
particularly฀the฀fiduciary฀obligations฀owed฀to฀the฀
Company฀and฀its฀stockholders;
iii)฀ Have฀relevant฀expertise฀and฀experience,฀and฀be฀able฀to฀
offer฀advice฀and฀guidance฀based฀upon฀that฀expertise;
iv)฀ Have฀a฀substantive฀understanding฀of฀domestic฀consid-
erations฀and฀geopolitics,฀especially฀those฀pertaining฀to฀
the฀service฀sector฀of฀the฀oil฀and฀gas฀and฀energy฀
related฀industries;
v)฀ Will฀dedicate฀sufficient฀time฀to฀Company฀business;
vi)฀ Exhibit฀integrity,฀sound฀business฀judgment฀and฀sup-
port฀for฀the฀Core฀Values฀of฀the฀Company;
vii)฀ Understand฀basic฀financial฀statements;
viii)฀ Are฀independent฀as฀defined฀by฀the฀Securities฀and฀
Exchange฀Commission฀(“SEC”)฀and฀the฀New฀York฀
Stock฀Exchange.
ix)฀ Support฀the฀ideals฀of฀the฀Company’s฀Business฀Code฀of฀
Conduct฀and฀are฀not฀engaged฀in฀any฀activity฀adverse฀
to,฀or฀do฀not฀serve฀on฀the฀board฀of฀another฀company฀
whose฀interests฀are฀adverse฀to,฀or฀in฀conflict฀with฀the฀
Company’s฀interests;
x)฀ Possess฀the฀ability฀to฀oversee,฀as฀a฀director,฀the฀affairs฀
of฀the฀Company฀for฀the฀benefit฀of฀its฀stockholders฀
while฀keeping฀in฀perspective฀the฀interests฀of฀the฀Com-
pany’s฀customers,฀employees฀and฀the฀public;฀and
xi)฀ Are฀able฀to฀exercise฀sound฀business฀judgment.
(B)฀ Maintain฀a฀Board฀that฀reflects฀diversity,฀including฀but฀not฀
limited฀to฀gender,฀ethnicity฀and฀experience.
2.฀Age
The฀Board฀will฀not฀nominate฀any฀person฀to฀serve฀as฀a฀
director฀who฀has฀attained฀the฀age฀of฀72.
3.฀Audit/Ethics฀Committee
The฀Governance฀Committee฀believes฀that฀it฀is฀desirable฀
that฀one฀or฀more฀members฀of฀the฀Company’s฀Audit/Ethics฀
Committee฀possess฀such฀qualities฀and฀skills฀such฀that฀they฀
qualify฀as฀an฀Audit฀Committee฀Financial฀Expert,฀as฀defined฀
by฀SEC฀rules฀and฀regulations.
4.฀Significant฀Change฀in฀Occupation฀or฀Employment
Any฀non-employee฀director฀who฀has฀a฀significant฀change฀
in฀occupation฀or฀retires฀from฀his฀or฀her฀principal฀employment฀
or฀position฀will฀promptly฀notify฀the฀Governance฀Committee.฀
The฀Governance฀Committee฀will฀determine฀if฀it฀is฀in฀the฀best฀
interests฀of฀the฀Company฀to฀nominate฀such฀person฀to฀serve฀
another฀term฀as฀a฀director฀following฀expiration฀of฀the฀director’s฀
current฀term.
5.฀Board฀Review฀and฀Assessments
Each฀year฀the฀members฀of฀the฀Board฀will฀participate฀in฀a฀
review฀and฀assessment฀of฀the฀Board฀and฀of฀each฀committee.฀
In฀connection฀with฀such฀reviews,฀or฀at฀any฀other฀time,฀a฀direc-
tor฀with฀concerns฀regarding฀performance,฀attendance,฀poten-
tial฀conflicts฀of฀interest,฀or฀any฀other฀concern฀respecting฀any฀
other฀director฀shall฀report฀such฀concerns฀to฀the฀Chairman฀of฀
the฀Governance฀Committee.฀The฀Chairman฀of฀the฀Governance฀
Committee,฀in฀consultation฀with฀such฀other฀directors฀as฀he฀
or฀she฀deems฀appropriate฀will฀determine฀how฀such฀concerns฀
should฀be฀investigated฀and฀reported฀to฀members฀of฀the฀Gov-
ernance฀Committee฀who฀are฀not฀the฀director฀in฀question฀
(“Disinterested฀Committee฀Members”).฀If฀the฀Disinterested฀
Committee฀Members฀conclude฀that฀the฀director฀is฀not฀fulfilling฀
his฀or฀her฀duties,฀they฀will฀determine฀what฀actions฀should฀be฀
taken.฀Such฀actions฀may฀include,฀without฀limitation,฀the฀Chair-
man฀of฀the฀Board฀or฀another฀Board฀member฀discussing฀the฀sit-
uation฀with฀the฀director฀in฀question,฀identifying฀what฀steps฀are฀
required฀to฀improve฀performance,฀or,฀if฀appropriate,฀requesting฀
that฀the฀director฀resign฀from฀the฀Board.
C-1฀฀฀฀Baker฀Hughes฀Incorporated