§ 41 Research & Experimentation Time Allocation Questionnaire

Employee Name: Ashis Kumar Roy Title: Product Development Engineer

Degree (if applicable): Mechanical Engineering Years of Industry Experience: 4
Years with Company: 4
Tax Year: 1/1/2015 - 12/31/2017

Qualified Research Activities 2015 2016 2017

1. New/Improved product design
a.) Research and experimentation/design of new or improved product 0% 10% 10%
b.) Technical sales involving preliminary design and requirement specification 0% 10% 10%
c.) Development involving conceptualization/preliminary design/feasibility analysis 0% 10% 10%
d.) Design/Development after the job is awarded 0% 3% 10%
e.) Prototype design and development 0% 10% 10%
f.) Prototype testing, field testing, and evaluation 0% 10% 10%
g.) Tooling design for development/manufacture of new product or prototype product 0% 0% 10%

2. New/Improved process design

a.) Development of new and/or improved processes to manufacture products 0% 0% 1%
b.) Experimentation with program application for new technology integration techniques 5% 0% 1%
c.) Improvements made to existing processes to increase efficiency and/or decrease scrap 10% 0% 1%
d.) Experimental/Pilot runs to test new and/or improved processes 5% 0% 1%
e.) Development of inspection criteria/validation procedures for new equipment/processes 10% 0% 1%

3. Direct technical support and supervision of qualified research

a.) CAD/CAM work for new and/or improved products and/or processes 10% 10% 10%
b.) Generation of technical reports describing laboratory or test results 10% 2% 1%
c.) Compiling and analyzing research and test data 10% 5% 2%
d.) Machining or fabricating new/improved design or experimental model (prototype) 10% 5% 2%
e.) Guidance/Feedback during designing, programming, and testing 5% 5% 2%

4. Other:

Subtotal Qualified Research Activities: 75% 80% 92%

Non-Qualified Activities
1. General administration and nontechnical management/supervision 5% 0% 0%
2. Corporate policy, procedures, strategy, and nontechnical meetings 2% 0% 0%
3. Nontechnical project management activities 0% 0% 0%
4. Nontechnical component pricing and bill of material creation 0% 0% 0%
5. Marketing, market research, and nontechnical sales 0% 10% 0%
6. Commercial production activities 7% 0% 2%
7. Servicing/Repairing machinery and/or processes (return to existing condition - not improving) 5% 0% 2%
8. Time & material work 0% 0% 0%
9. Routine inspection, testing, or sampling (for commercial production) 2% 0% 0%
10. CAD/CAM drafting for fixing (not improving) existing products 2% 5% 2%
11. Training for new processes, software programs, and/or certifications 2% 5% 2%
12. Activities outside United States and U.S. Territories 0% 0% 0%
13. Other:

Subtotal Non-Qualified Research Activities: 25% 20% 8%

Total Activities
Qualified + Non-Qualified Activities - Must add up to 100%: 100% 100% 100%
Qualified Project List
List your major qualified projects during the study period.

In order to qualify for the R&E tax credit, a project must pass the following four-part test:

1) Project/activity must intend to discover new information that is technological in nature (e.g. relies on principles of hard science:
engineering, physics, biology, chemistry, computer science, etc.).

2) Project/activity must intend to eliminate uncertainty concerning the development or improvement of a product, process,
technique, formula, or invention.

3) Project/activity must involve a testing/experimentation/trial-and-error process that evaluates one or more design alternatives.

4) Project/activity must relate to development or improvement of an identifiable business component (a product, process, technique,
formula, or invention).

Project Name Tax Year

Statistical Process Control and Process Improvement at Casing Heat Treat, EMI and Threadline 2015
Risk Assesment of Current Operations at Tejas Casing and Tejas Tubing Facility 2015
Quality Procedure Improvement at Tejas Casing Facility 2015
Reserch, Manufacturing Design and Quality Specifications on Fire Sprinkler Pipe 2016
Engineering Design, Specification and Equipment Procurement for Light Pole Project 2016
Desiging, Machining Prototype and Testing Multiple Connections for Directional Drill Pipe 2016
Designing Directional Drill Pipe Accessories Product Line 2017
Installation of Mazak CNC Lathe to Initiate in House Manufacturing Drill Pipe Tool Joints 2017
Programming all Tool Joint Machining using CAD/CAM, Training operators and Inspectors 2017
Cooling Tower Installation for New Production Line 2018
Installation and Upgrading Inertia Welder for New Production Line 2018

Completed by: Ashis Kumar Roy Date: 9/14/2018

§ 41 Research & Experimentation Time Allocation Questionnaire

Employee Name: John Smith Title: Mechanical Engineer

Degree (if applicable): B.S. Mechanical Engineering Years of Industry Experience: 10
Years with Company: 5
Tax Year: 1/1/2016 - 12/31/2016

Qualified Research Activities 2016

1. New/Improved product design
a.) Research and experimentation/design of new or improved product 20%
b.) Technical sales involving preliminary design and requirement specification
c.) Development involving conceptualization/preliminary design/feasibility analysis
d.) Design/Development after the job is awarded
e.) Prototype design and development 15%
f.) Prototype testing, field testing, and evaluation 10%
g.) Tooling design for development/manufacture of new product or prototype product

2. New/Improved process design

a.) Development of new and/or improved processes to manufacture products 13%
b.) Experimentation with program application for new technology integration techniques
c.) Improvements made to existing processes to increase efficiency and/or decrease scrap
d.) Experimental/Pilot runs to test new and/or improved processes
e.) Development of inspection criteria/validation procedures for new equipment/processes

3. Direct technical support and supervision of qualified research

a.) CAD/CAM work for new and/or improved products and/or processes 5%
b.) Generation of technical reports describing laboratory or test results
c.) Compiling and analyzing research and test data
d.) Machining or fabricating new/improved design or experimental model (prototype)
e.) Guidance/Feedback during designing, programming, and testing 5%

4. Other:

Subtotal Qualified Research Activities: 68%

Non-Qualified Activities
1. General administration and nontechnical management/supervision 10%
2. Corporate policy, procedures, strategy, and nontechnical meetings
3. Nontechnical project management activities 5%
4. Nontechnical component pricing and bill of material creation
5. Marketing, market research, and nontechnical sales
6. Commercial production activities 10%
7. Servicing/Repairing machinery and/or processes (return to existing condition - not improving)
8. Time & material work
9. Routine inspection, testing, or sampling (for commercial production)
10. CAD/CAM drafting for fixing (not improving) existing products 7%
11. Training for new processes, software programs, and/or certifications
12. Activities outside United States and U.S. Territories
13. Other:

Subtotal Non-Qualified Research Activities: 32%

Total Activities
Qualified + Non-Qualified Activities - Must add up to 100%: 100%
Qualified Project List
List your major qualified projects during the study period.

In order to qualify for the R&E tax credit, a project must pass the following four-part test:

1) Project/activity must intend to discover new information that is technological in nature (e.g. relies on
principles of hard science: engineering, physics, biology, chemistry, computer science, etc.).

2) Project/activity must intend to eliminate uncertainty concerning the development or improvement of a

product, process, technique, formula, or invention.

3) Project/activity must involve a testing/experimentation/trial-and-error process that evaluates one or more

design alternatives.

4) Project/activity must relate to development or improvement of an identifiable business component (a product,

process, technique, formula, or invention).

Project Name Tax Year

ABC Project 2016
XYZ Project 2016
123 Project 2016
789 Project 2016

Completed by: John Smith Date: 2/1/2017