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ANNEX฀D
BAKER฀HUGHES฀INCORPORATED฀
SELECTION฀PROCESS฀FOR฀NEW฀
BOARD฀OF฀DIRECTORS฀CANDIDATES
Baker฀Hughes฀Incorporated฀(“Company”)฀has฀established฀
the฀following฀process฀for฀the฀selection฀of฀new฀candidates฀for฀
the฀Company’s฀Board฀of฀Directors฀(“Board”).฀The฀Board฀or฀the฀
Company’s฀Governance฀Committee฀will฀evaluate฀candidates฀
properly฀proposed฀by฀stockholders฀in฀the฀same฀manner฀as฀all฀
other฀candidates.
1.฀ Chairman/CEO,฀the฀Governance฀Committee,฀or฀other฀Board฀
members฀identify฀a฀need฀to฀fill฀vacancies฀or฀add฀newly฀cre-
ated฀directorships.
2.฀ Chairman฀of฀the฀Governance฀Committee฀initiates฀search,฀
working฀with฀staff฀support฀and฀seeking฀input฀from฀the฀Board฀
members฀and฀senior฀management,฀and฀hiring฀a฀search฀firm฀
or฀obtaining฀advice฀from฀legal฀or฀other฀advisors,฀if฀necessary.฀
3.฀ Candidates,฀including฀any฀candidates฀properly฀proposed฀by฀
stockholders฀in฀accordance฀with฀the฀Company’s฀Bylaws฀that฀
satisfy฀criteria฀as฀described฀in฀the฀Company’s฀“Guidelines฀For฀
Membership฀on฀the฀Board฀of฀Directors”฀or฀otherwise฀qualify฀
for฀membership฀on฀the฀Board,฀are฀identified฀and฀presented฀
to฀the฀Governance฀Committee.฀
4.฀ Determine฀if฀the฀Governance฀Committee฀members,฀Board฀
members฀or฀senior฀management฀have฀a฀basis฀to฀initiate฀
contact฀with฀preferred฀candidates;฀or฀if฀appropriate,฀utilize฀
a฀search฀firm.
5.฀ Chairman/CEO฀and฀at฀least฀one฀member฀of฀the฀Governance฀
Committee฀interviews฀prospective฀candidate(s).
6.฀ Full฀Board฀to฀be฀kept฀informed฀of฀progress.
7.฀ The฀Governance฀Committee฀meets฀to฀consider฀and฀approve฀
final฀candidate(s)฀(conduct฀interviews฀as฀necessary).
8.฀ The฀Governance฀Committee฀will฀propose฀to฀the฀full฀฀
Board฀candidates฀for฀Board฀membership฀to฀fill฀vacancies,฀
or฀to฀stand฀for฀election฀at฀the฀next฀Annual฀Meeting฀
of฀Stockholders.
ANNEX฀E
BAKER฀HUGHES฀INCORPORATED฀
AUDIT/ETHICS฀COMMITTEE฀
GUIDELINES฀FOR฀PRE-APPROVAL฀OF฀AUDIT฀฀
AND฀NON-AUDIT฀FEES฀OF฀INDEPENDENT฀AUDITOR
Audit฀Fees
The฀independent฀auditor฀will฀submit฀to฀the฀Audit/Ethics฀
Committee฀of฀the฀Board฀of฀Directors฀(“Committee”)฀for฀pre-
approval฀a฀worldwide฀engagement฀letter฀outlining฀the฀scope฀
of฀the฀audit฀services฀proposed฀to฀be฀performed฀for฀the฀fiscal฀
year฀together฀with฀an฀audit฀services฀fee฀proposal฀annually.฀
Non-Audit฀Fees
Management฀will฀submit฀to฀the฀Committee฀for฀pre-
approval฀proposed฀projects฀annually฀for฀the฀upcoming฀year฀
requesting฀specific฀pre-approval฀for฀all฀projects฀over฀$15,000฀
and฀general฀approval฀for฀all฀projects฀under฀$15,000฀with฀the฀
Committee฀informed฀of฀the฀particular฀services.฀The฀Company’s฀
independent฀auditor฀may฀be฀awarded฀any฀type฀of฀non-audit฀
services฀not฀prohibited฀by฀law฀or฀regulations,฀including฀the฀
Sarbanes-Oxley฀Act,฀which฀services฀may฀include฀but฀not฀be฀
limited฀to:฀tax฀compliance,฀planning฀and฀tax฀audit฀assistance;฀
limited฀situation฀projects฀related฀to฀the฀Company฀or฀employee฀
statutory฀filings,฀requirements฀or฀applications;฀assignments฀
related฀to฀financial฀statement฀and฀internal฀control฀risk฀assess-
ments.฀The฀annual฀request฀must฀include฀a฀representation฀from฀
management฀and฀the฀independent฀auditor฀as฀to฀whether,฀in฀
their฀view,฀the฀request฀is฀consistent฀with฀the฀Securities฀and฀
Exchange฀Commission’s฀rules฀on฀auditor฀independence.฀
The฀Committee฀has฀delegated฀to฀the฀Chairman฀of฀the฀
Committee฀the฀pre-approval฀requirement฀of฀non-audit฀fees฀for฀
new฀projects฀that฀are฀identified฀after฀the฀annual฀pre-approval฀
by฀the฀Committee.฀Projects฀with฀estimated฀fees฀of฀$15,000฀
and฀above฀arising฀subsequent฀to฀the฀annual฀Committee฀pre-
approval฀will฀be฀presented฀to฀the฀Chairman฀of฀the฀Committee฀
for฀approval฀prior฀to฀starting฀the฀project.฀New฀projects฀with฀
estimated฀fees฀less฀than฀$15,000฀not฀included฀in฀the฀annual฀
pre-approval฀will฀also฀be฀presented฀to฀the฀Chairman฀of฀the฀
Committee฀“in฀total”,฀with฀a฀comparison฀to฀original฀approvals.฀
The฀Chairman฀(and฀subsequently฀the฀Committee)฀will฀be฀
informed฀of฀the฀particular฀services.฀All฀such฀decisions฀by฀the฀
Chairman฀will฀be฀reported฀to฀the฀Committee฀at฀a฀scheduled฀
meeting.฀The฀Committee฀does฀not฀delegate฀its฀responsibilities฀
to฀pre-approve฀services฀performed฀by฀the฀independent฀auditor฀
to฀management.
The฀Committee฀will฀be฀provided฀an฀interim฀update฀during฀
the฀year.฀However,฀if฀there฀are฀deviations฀of฀ten฀percent฀or฀
greater฀from฀the฀aggregate฀pre-approved฀amount,฀the฀Com-
mittee฀will฀receive฀an฀update฀at฀a฀scheduled฀meeting.฀Any฀pro-
posed฀services฀exceeding฀pre-approved฀cost฀levels฀will฀require฀
specific฀approval฀by฀the฀Committee.
Proxy฀Statement฀฀฀฀฀D-1