INTEROFFICE MEMORANDUM

Date: February 12, 2008

To: Region Operations/Sales/Technical Mangers

Tomball Managers/Directors

From: Ed Smith

Subject: 2008 Technical Bonus Award Guidelines

The following 2008 Technical Bonus Award guidelines are based on a three-level award system
established to provide a monetary incentive for publishing technical work, in key worldwide
meetings. The incentive will be paid only once to the author or divided among authors, for each
original work product. Papers that are deemed to contain a significant amount of duplicated content
from a previous publication will not qualify for an award. Authors will be limited to four bonus awards
given during a single calendar year. Bonus incentives will only be considered for the calendar year
2008.

1. Award level one, a $2000 technical bonus will be paid for all SPE papers written and presented
at the Annual Technical SPE Conference. Papers accepted and presented at an ATCE poster
session are eligible at a rate of $1500.

2. Award level two, an award of $1250 will be paid for all papers written and presented at regional
SPE, CIM, IADC, ASME, NACE, OTC, ICoTA meetings. Pending the approval of the Region
Sales Manager or International Region VP, a level two award will be paid for publications
prepared and presented at other industry association, regional events not mentioned. The
approval from Region Management will be based on the overall benefit to the company.

3. Award level three, an award of $750 will be paid for all papers and articles selected for
publication in the following trade journals; JPT, World Oil, Oil & Gas Journal, and Petroleum
Engineer International. Awards for publications in other magazines and journals not listed will
be given at the discretion of the Vice President of Technology & Logistics. Only one reprint or
abridged version of a level one or two paper will qualify as a level three award.

The proposed three-award level system is targeted at our largest key customer readership, in an on
going effort to constantly improve our technical image. If a submitted technical bonus award request
is outside these guidelines, no award will be given.

Please send all bonus award requests to Issa Mendez in the Technology Group for processing. Due
to the limitation of four awards per year, all requests must include a confirmation from each co-
author indicating whether they wish to receive the cash award or not. After the paper has been
received and approved by the Technical Bonus Award Committee, allow for at least two to three pay
periods before the payment is made.