exv10w2



 





Exhibit 10.2




INDEMNIFICATION AGREEMENT




THIS AGREEMENT is made on the 11th day of June, 2007



BETWEEN:



Weatherford International Ltd., a company incorporated under the laws of Bermuda with its
registered office located at Clarendon House, 2 Church Street, Hamilton, Bermuda (the “Company”);
and



Keith R. Morley (the “Indemnitee”).



WHEREAS the Indemnitee is an officer of the Company;




WHEREAS highly skilled and competent persons are becoming more reluctant to serve public companies
as directors or officers unless they are provided with adequate protection through insurance and
indemnification against inordinate risks of claims and actions against them arising out of their
service to and activities on behalf of such companies;



WHEREAS uncertainties relating to indemnification increase the difficulty of attracting and
retaining such persons;



WHEREAS the Board has determined that an inability to attract and retain such persons is
detrimental to the best interests of the Company and that the Company should act to assure such
persons that there will be increased certainty of such protection in the future;



WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself
to indemnify Indemnitee to the fullest extent permitted by Bermuda law so that Indemnitee will
serve or continue to serve the Company free from undue concern that Indemnitee will not be so
indemnified;



WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or
on behalf of the Company on the condition that Indemnitee be so indemnified;



NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company
and Indemnitee do hereby covenant and agree as follows:




	1.	 	INTERPRETATION






	1.1	 	In this Agreement unless the context otherwise requires, the following words and expressions
shall have the following meanings:





	 	 	 	 	 
	 

	 	this “Agreement”
	 	means this Indemnification Agreement;
	 
	 	 	 	 
	 

	 	the “Board”
	 	means the board of directors of the Company;






 









 






	 	 	 	 	 
	 
	 	 	 	 
	 

	 	“Business Day”
	 	means any day on which banks in Bermuda are open for business;
	 
	 	 	 	 
	 

	 	the “Companies Act”
	 	means the Companies Act 1981;
	 
	 	 	 	 
	 

	 	“Corporate Status”
	 	means the status of a person who is or was a director, officer,
employee, agent, or fiduciary of the Company or any other Group Company, or is or was
serving at the request of the Company as a director, officer, employee, agent or
fiduciary of any other company, corporation, partnership, limited liability company,
joint venture, trust, employee benefit plan or other entity or enterprise;
	 
	 	 	 	 
	 

	 	“the Court”
	 	means the Supreme Court of Bermuda;
	 
	 	 	 	 
	 

	 	“Disinterested Director”
	 	means a director of the Company who is not or was not a
party to a Proceeding in respect of which indemnification is sought by Indemnitee;
	 
	 	 	 	 
	 

	 	“Group Companies”
	 	means the Company and each subsidiary of the Company (wherever
incorporated or organized);
	 
	 	 	 	 
	 

	 	“Independent Counsel”
	 	means a law firm or a member of a law firm that neither is
presently nor in the past five years has been retained to represent: (i) the Company or
Indemnitee in any matter material to either such party, or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s right to indemnification under this Agreement;
	 
	 	 	 	 
	 

	 	the “Parties”
	 	means the parties to this Agreement collectively, and “Party” means
any one of them; and
	 
	 	 	 	 
	 

	 	“Proceeding”
	 	means any action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding whether civil,
criminal, administrative or investigative and whether formal or informal;






-2-









 







	1.2	 	In this Agreement unless the context otherwise requires:






	 	1.2.1	 	references to statutory provisions shall be construed as references to those
provisions as amended or re-enacted or as their application is modified by other
provisions from time to time and shall include references to any provisions of which
they are re-enactments (whether with or without modification);






	 	1.2.2	 	references to clauses and schedules are references to clauses hereof and
schedules hereto; references to sub-clauses or paragraphs are, unless otherwise stated,
references to sub-clauses of the clause or paragraphs of the schedule in which the
reference appears;






	 	1.2.3	 	references to the singular shall include the plural and vice versa and
references to the masculine shall include the feminine and/or neuter and vice versa;
and






	 	1.2.4	 	references to persons shall include companies, partnerships, associations and
bodies of persons, whether incorporated or unincorporated.






	2.	 	AGREEMENT TO SERVE
	 
	 	 	Indemnitee agrees to continue to serve as an officer of the Company. This Agreement does not
create or otherwise establish any right on the part of Indemnitee to be and continue to be
elected or appointed an officer of the Company or any other Group Company and does not
create an employment contract between the Company and Indemnitee.






	3.	 	INDEMNITY OF DIRECTOR/OFFICER






	3.1	 	Subject to clause 10, the Company shall indemnify Indemnitee if Indemnitee is a party or is
threatened to be made a party to any threatened, pending or completed Proceeding, including a
Proceeding brought by or in the right of the Company, by reason of the fact that Indemnitee is
or was a director, officer, employee, agent, or fiduciary of the Company or is or was serving
at the request of the Company as a director, officer, employee, agent, or fiduciary of any
other company, corporation, partnership, limited liability company, joint venture, trust,
employee benefit plan or other entity or enterprise or by reason of anything done or not done
by Indemnitee in any such capacity. Subject to clause 10, pursuant to this sub-clause 3.1
Indemnitee shall be indemnified against expenses (including attorneys’ fees and
disbursements), judgments, penalties, fines and amounts paid in settlement actually and
reasonably incurred by Indemnitee in connection with such Proceeding (including, but not
limited to, the investigation, defense, settlement or appeal thereof).






	3.2	 	Notwithstanding any other provision of this Agreement other than clause 10, Indemnitee shall
be indemnified against all expenses (including attorneys’ fees and disbursements) actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in defending any Proceedings
referred to in clause 3.1 in which judgement is given in his favour, in




-3-









 






	 	 	which he is acquitted, or in respect of which relief is granted to him by the Court under
section 281 of the Companies Act.






	3.3	 	Subject to clause 10, the Company shall indemnify Indemnitee for such portion of the expenses
(including attorneys’ fees), witness fees, damages, judgments, fines and amounts paid in
settlement and any other amounts that Indemnitee becomes legally obligated to pay in
connection with any Proceeding referred to in clause 3.1 in respect of which Indemnitee is
entitled to indemnification hereunder, even if Indemnitee is not entitled to indemnification
hereunder for the total amount thereof.






	3.4	 	Without limiting the scope of the indemnity provided under any other provision of this
Agreement, if the Indemnitee has reason to apprehend that any claim will or might be made
against him in respect of any negligence, default, breach of duty or breach of trust, he may
apply to the Court for relief pursuant to section 281 of the Companies Act and, to the extent
that the Court relieves him, either wholly or partly, from his liability in accordance with
section 281 of the Companies Act, the Indemnitee shall be indemnified against any liability
incurred by him in defending any Proceedings in accordance with paragraph 98(2)(b) of the
Companies Act.






	4.	 	INDEMNIFICATION FOR EXPENSES OF A WITNESS
	 
	 	 	Subject to clause 10, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate
Status, a witness in any proceeding, Indemnitee shall be indemnified by the Company against
all expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection therewith.






	5.	 	DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION






	5.1	 	The Indemnitee shall request indemnification pursuant to this Agreement by notice in writing
to the secretary of the Company. The secretary shall, promptly upon receipt of Indemnitee’s
request for indemnification, advise in writing the Board or such other person or persons
empowered to make the determination as provided in sub-clause 5.2 that Indemnitee has made
such request for indemnification. Subject to clause 10, upon making such request for
indemnification, Indemnitee shall be presumed to be entitled to indemnification hereunder and
the Company shall have the burden of proof in the making of any determination contrary to such
presumption.






	5.2	 	Upon written request by Indemnitee for indemnification pursuant to sub-clause 3.1, the
entitlement of the Indemnitee to indemnification pursuant to the terms of this Agreement shall
be determined by the following person or persons who shall be empowered to make such
determination:






	 	5.2.1	 	the Board, by a majority vote of the Disinterested Directors; or




-4-









 






	 	5.2.2	 	if such vote is not obtainable or, even if obtainable, if such
Disinterested Directors so direct by majority vote, by Independent Counsel in a
written opinion to the Board, a copy of which shall be delivered to Indemnitee;
or
	 
	 	5.2.3	 	by a majority vote of the shareholders.






	5.3	 	For purposes of sub-clause 5.2, Independent Counsel shall be selected by the Board and
approved by Indemnitee. Upon failure of the Board to so select such Independent Counsel or
upon failure of Indemnitee to so approve, such Independent Counsel shall be selected by a
single arbitrator pursuant to the rules of the American Arbitration Association. Such
determination of entitlement to indemnification shall be made not later than 60 days after
receipt by the Company of a written request for indemnification. Such request shall include
documentation or information which is necessary for such determination and which is reasonably
available to Indemnitee. Subject to clause 10, any expenses (including attorneys’ fees)
incurred by Indemnitee in connection with Indemnitee’s request for indemnification hereunder
shall be borne by the Company irrespective of the outcome of the determination of Indemnitee’s
entitlement to indemnification. If the person or persons making such determination shall
determine that Indemnitee is entitled to indemnification as to part (but not all) of the
application for indemnification, such persons may reasonably prorate such partial
indemnification among such claims, issues or matters in respect of which indemnification is
requested.






	6.	 	ADVANCEMENT OF EXPENSES
	 
	 	 	All reasonable expenses incurred by Indemnitee (including attorneys’ fees, retainers and
advances of disbursements required of Indemnitee) shall be paid by the Company in advance of
the final disposition of any Proceeding at the request of Indemnitee as promptly as
possible, and in any event within twenty days after the receipt by the Company of a
statement or statements from Indemnitee requesting such advance or advances from time to
time. Indemnitee’s entitlement to such expenses shall include those incurred in connection
with any Proceeding by Indemnitee seeking an adjudication or award in arbitration pursuant
to this Agreement. Such statement or statements shall reasonably evidence the expenses
incurred by Indemnitee in connection therewith and shall include or be accompanied by an
undertaking by or on behalf of Indemnitee to repay such amount if it is ultimately
determined that Indemnitee is not entitled to be indemnified against such expenses by the
Company as provided by this Agreement or otherwise. Subject to clause 10, the Company shall
have the burden of proof in any determination under this clause 6. No amounts advanced
hereunder shall be deemed an extension of credit by the Company to Indemnitee.






	7.	 	REMEDIES OF INDEMNITEE IN CASES OF DETERMINATION NOT TO INDEMNIFY OR TO ADVANCE EXPENSES
	 
	7.1	 	In the event that: (a) a determination is made that Indemnitee is not entitled to
indemnification hereunder; (b) payment has not been timely made following a




-5-









 






	 	 	determination of entitlement to indemnification pursuant to clause 5; or (c) expenses are
not advanced pursuant to clause 6, Indemnitee shall be entitled to apply to the Court or any
other court of competent jurisdiction for a determination of Indemnitee’s entitlement to
such indemnification or advance.






	7.2	 	Alternatively to sub-clause 7.1, Indemnitee, at Indemnitee’s option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association, such award to be made within sixty days following the filing of the
demand for arbitration. The Company shall not oppose Indemnitee’s right to seek any such
adjudication or award in arbitration or any other claim.






	7.3	 	A judicial proceeding or arbitration pursuant to this clause 7 shall be made de novo and
Indemnitee shall not be prejudiced by reason of a determination otherwise made hereunder (if
so made) that Indemnitee is not entitled to indemnification. Subject to clause 10, if a
determination is made pursuant to the terms of clause 5 that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination and is precluded from
asserting that such determination has not been made or that the procedure by which such
determination was made is not valid, binding and enforceable. If the court or arbitrator
shall determine that Indemnitee is entitled to any indemnification hereunder, the Company
shall pay all reasonable expenses (including attorneys’ fees and disbursements) actually
incurred by Indemnitee in connection with such adjudication or award in arbitration
(including, but not limited to, any appellate proceedings).
	 
	8.	 	OTHER RIGHTS TO INDEMNIFICATION
	 
	 	 	The indemnification and advancement of expenses (including attorneys’ fees) provided by this
Agreement shall not be deemed exclusive of any other right to which Indemnitee may now or in
the future be entitled under any provision of the Company’s bye-laws, any agreement, vote of
shareholders, the Board or Disinterested Directors, provision of law, or otherwise;
provided, however, that: (a) this Agreement supersedes any other agreement that has been
entered into by the Company with the Indemnitee which has as its principal purpose the
indemnification of Indemnitee (except that this Agreement shall not supersede that certain
Indemnification Agreement entered into on or about the date hereof between Indemnitee and
Weatherford International, Inc., a subsidiary of the Company, it being the intention of the
Parties that Indemnitee shall be entitled to the indemnification provided under either or
both agreements to the fullest extent permitted by law); and (b) where the Company may
indemnify the Indemnitee pursuant to either this Agreement or the bye-laws of the Company,
the Company may indemnify the Indemnitee under either this Agreement or the bye-laws but the
Indemnitee shall, in no case, be indemnified by the Company in respect of any expense,
liability or cost of any type for which payment is or has been actually made to Indemnitee
under any insurance policy, indemnity clause, bye-law or agreement, except in respect of any
excess beyond such payment.




-6-









 












	9.	 	ATTORNEYS’ FEES AND OTHER EXPENSES TO ENFORCE AGREEMENT
	 
	 	 	In the event that Indemnitee is subject to or intervenes in any Proceeding in which the
validity or enforceability of this Agreement is at issue or seeks an adjudication or award
in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of,
this Agreement, Indemnitee, if Indemnitee prevails in whole or in part in such action, shall
be entitled to recover from the Company and shall be indemnified by the Company against, any
actual expenses for attorneys’ fees and disbursements reasonably incurred by Indemnitee,
provided that in bringing such action, Indemnitee acted in good faith.
	 
	10.	 	LIMITATION OF INDEMNIFICATION
	 
	 	 	Notwithstanding any other terms of this Agreement, nothing herein shall indemnify the
Indemnitee against, or exempt the Indemnitee from, any liability in respect of the
Indemnitee’s fraud or dishonesty.
	 
	11.	 	LIABILITY INSURANCE
	 
	 	 	To the extent the Company maintains an insurance policy or policies providing directors’ and
officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in
accordance with its or their terms, to the maximum extent of the coverage available for any
Company director or officer.
	 
	12.	 	DURATION OF AGREEMENT
	 
	 	 	This Agreement shall apply with respect to Indemnitee’s occupation of any of the position(s)
described in sub-clause 3.1 of this Agreement prior to the date of this Agreement and with
respect to all periods of such service after the date of this Agreement, even though the
Indemnitee may have ceased to occupy such positions(s).
	 
	13.	 	NOTICE OF PROCEEDINGS BY INDEMNITEE
	 
	13.1	 	Indemnitee agrees promptly to notify the Company in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information or other document relating to
any Proceeding which may be subject to indemnification hereunder, provided, however, that the
failure to so notify the Company will not relieve the Company from any liability it may have
to Indemnitee except to the extent that such failure materially prejudices the Company’s
ability to defend such claim. With respect to any such Proceeding as to which Indemnitee
notifies the Company of the commencement thereof:






	 	13.1.1	 	the Company will be entitled to participate therein at its own expense; and
	 
	 	13.1.2	 	except as otherwise provided below, to the extent that it may wish, the Company
jointly with any other indemnifying party similarly notified will be entitled to




-7-









 






	 	 	 	assume the defense thereof, with counsel reasonably satisfactory to Indemnitee.
After notice from the Company to Indemnitee of its election so to assume the defense
thereof, the Company will not be liable to Indemnitee under this Agreement for any
legal or other expenses subsequently incurred by Indemnitee in connection with the
defense thereof other than reasonable costs of investigation or as otherwise
provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel
in such Proceeding, but the fees and expenses of such counsel incurred after notice
from the Company of its assumption of the defense thereof shall be at the expense of
Indemnitee and not subject to indemnification hereunder unless (a) the employment of
counsel by Indemnitee has been authorized by the Company; (b) in the reasonable
opinion of counsel to Indemnitee there is or may be a conflict of interest between
the Company and Indemnitee in the conduct of the defense of such Proceeding; or (c)
the Company shall not in fact have employed counsel to assume the defense of such
action, in each of which cases, subject to clause 10, the fees and expenses of
counsel shall be at the expense of the Company.






	13.2	 	Neither the Company nor the Indemnitee shall settle any claim without the prior written
consent of the other (which shall not be unreasonably withheld).
	 
	14.	 	NOTICES
	 
	 	 	Any notice required to be given hereunder shall be in writing in the English language and
shall be served by sending the same by prepaid recorded post, facsimile or by delivering the
same by hand to the address of the Party or Parties in question as set out below (or such
other address as such Party or Parties shall notify the other Parties of in accordance with
this clause). Any notice sent by post as provided in this clause shall be deemed to have
been served five Business Days after despatch and any notice sent by facsimile as provided
in this clause shall be deemed to have been served at the time of despatch and in proving
the service of the same it will be sufficient to prove in the case of a letter that such
letter was properly stamped, addressed and placed in the post; and in the case of a
facsimile that such facsimile was duly despatched to a current facsimile number of the
addressee.





	 	 	 	 	 
	 	 	Company -
	 
	 	 	 	 
	 	 	Weatherford International Ltd.
	 	 	c/o Weatherford International, Inc.
	 	 	515 Post Oak Park, Suite 600
	 	 	Houston, Texas 77027-3415
	 

	 	Attn:
	 	Secretary
	 

	 	Fax:
	 	713-693-4484






-8-









 






	 	 	 	 	 
	 	 	Indemnitee -

	 

	 	Name:
	 	Keith R. Morley

	 

	 	Address:
	 	515 Post Oak Boulevard, Suite 600

	 

	 	 	 	Houston, Texas 77027

	 

	 	Fax:
	 	(713) 693-4484







	15.	 	MISCELLANEOUS
	 
	15.1	 	Notwithstanding the expiration or termination of this Agreement howsoever arising, such
expiration or termination shall not operate to affect such of the provisions hereof as are
expressed or intended to remain in full force and effect.
	 
	15.2	 	If any of the clauses, conditions, covenants or restrictions of this Agreement or any deed or
document emanating from it shall be found to be void but would be valid if some part thereof
were deleted or modified, then such clause, condition, covenant or restriction shall apply
with such deletion or modification as may be necessary to make it valid and effective so as to
give effect as nearly as possible to the intent manifested by such clause, condition, covenant
or restriction.
	 
	15.3	 	This Agreement shall be binding upon the Company and its successors and assigns (including
any transferee of all or substantially all of its assets and any successor or resulting
company by merger, amalgamation or operation of law) and shall inure to the benefit of
Indemnitee and Indemnitee’s spouse, assigns, heirs, estate, devises, executors, administrators
or other legal representatives.
	 
	15.4.	 	This Agreement (together with any documents referred to herein) constitutes the whole
agreement between the Parties relating to its subject matter and supersedes any prior
indemnification arrangement between the Company (or its predecessor) and Indemnitee (except as
specifically set forth in clause 8).
	 
	15.5	 	No provision in this Agreement may be amended unless such amendment is agreed to in writing,
signed by the Indemnitee and by a duly authorised officer of the Company. No waiver by either
Party of any breach by the other Party of any condition or provision of this Agreement to be
performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or
provision at the same or any prior or subsequent time. Any waiver must be in writing and
signed by the Indemnitee or a duly authorised officer of the Company, as the case may be.
	 
	15.6	 	The headings in this Agreement are inserted for convenience only and shall not affect the
construction of this Agreement.
	 
	15.7	 	This Agreement may be executed in counterparts each of which when executed and delivered
shall constitute an original but all such counterparts together shall constitute one and the
same instrument.




-9-









 






	15.8	 	The terms and conditions of this Agreement and the rights of the parties hereunder shall be
governed by and construed in all respects in accordance with the laws of the Islands of
Bermuda. The parties to this Agreement hereby irrevocably agree that the courts of Bermuda
shall have non-exclusive jurisdiction in respect of any dispute, suit, action, arbitration or
proceedings (“Agreement Proceedings”) which may arise out of or in connection with this
Agreement and waive any objection to Agreement Proceedings in the courts of Bermuda on the
grounds of venue or on the basis that the Agreement Proceedings have been brought in an
inconvenient forum.
	 
	15.9	 	All payments made by the Company to Indemnitee hereunder shall be deemed to have been made in
the ordinary course of business of the Company, and shall not be deemed to be extraordinary
payments.




-10-









 











IN WITNESS WHEREOF, the undersigned, intending to be bound hereby, have duly executed this
Agreement as of the date first written above.



	 	 	 	 	 	 	 	 	 	 	 	 	 
	SIGNED by and on behalf of	 	 	)	 	 	 	 	 	 	 
	THE COMPANY	 	 	)	 	 	 	 	     /s/ Burt M. Martin
	 	 	 	 	 	 	 	 	 	 	 
	in the presence of:	 	 	)	 	 	 	 	Name:	 	Burt M. Martin
	Witness:

	 	     /s/ Andy Becnel
	 	 	 	 	 	 	 	Title:
	 	Senior Vice President
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Andy Becnel	 	 	 	 	 	 	 	 	 	 
	SIGNED by	 	 	)	 	 	 	 	 	 	 
	THE INDEMNITEE	 	 	)	 	 	 	 	     /s/ Keith R. Morley
	 	 	 	 	 	 	 	 	 	 	 
	in the presence of:	 	 	)	 	 	 	 	Name:	 	Keith R. Morley
	Witness:

	 	     /s/ Kathleen Marino	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Kathleen Marino	 	 	 	 	 	 	 	 	 	 







-11-