Document:

exv10w2

 

EXHIBIT 10.2

WEATHERFORD INTERNATIONAL LTD. RESTRICTED SHARE PLAN

As Amended and Restated Effective as of January 16, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I PURPOSE AND TERM
	 	 	1	 
	1.1 Purpose
	 	 	1	 
	1.2 Term of Plan
	 	 	1	 
	ARTICLE II DEFINITIONS
	 	 	1	 
	ARTICLE III ELIGIBILITY
	 	 	4	 
	ARTICLE IV AWARDS
	 	 	4	 
	4.1 Authority to Grant Awards
	 	 	4	 
	4.2 Dedicated Shares
	 	 	4	 
	4.3 Maximum Awards for Officers and Directors
	 	 	5	 
	4.4 Terms of Awards
	 	 	5	 
	4.5 Holder’s Rights as Shareholder
	 	 	5	 
	4.6 Non-Transferability
	 	 	5	 
	4.7 Requirements of Law
	 	 	6	 
	4.8 Changes in the Company’s Capital Structure
	 	 	6	 
	4.9 Change in Control
	 	 	7	 
	4.10 Fractional Shares
	 	 	7	 
	ARTICLE V ADMINISTRATION
	 	 	7	 
	ARTICLE
VI AMENDMENT OR TERMINATION OF PLAN
	 	 	8	 
	ARTICLE VII MISCELLANEOUS
	 	 	8	 
	7.1 No Establishment of a Trust Fund
	 	 	8	 
	7.2 No Employment or Affiliation Obligation
	 	 	8	 
	7.3 Tax Withholding
	 	 	8	 
	7.4 Written Agreement
	 	 	9	 
	7.5 Indemnification of the Committee
	 	 	9	 
	7.6 Gender
	 	 	10	 
	7.7 Headings
	 	 	10	 
	7.8 Other Compensation Plans
	 	 	10	 
	7.9 Other Awards
	 	 	10	 
	7.10 Exercise of Corporate Powers
	 	 	10	 
	7.11 Persons Residing Outside of the United States
	 	 	10	 
	7.12 Governing Law
	 	 	10	 

 -i- 

 

 

ARTICLE I

PURPOSE AND TERM

     1.1 Purpose. The Plan, as originally adopted by the Company on May 9,
2003, is hereby amended and restated by the Company effective as of January 16,
2004. The Plan is intended to advance the best interests of the Company and
its Affiliates by providing those persons who have substantial responsibility
for the management and growth of any of the Company or its Affiliates with
additional incentives and an opportunity to obtain or increase their
proprietary interest in the Company, thereby encouraging them to continue in
their employment or affiliation with the Company or any of its Affiliates.

     1.2 Term of Plan. Subject to earlier termination by the Committee
pursuant to Article VI, no Award will be granted under the Plan after May 9,
2013, the tenth anniversary of the date of the adoption of the Plan, but Awards
granted before such date may extend beyond such date, and all authority of the
Committee with respect to Awards hereunder, including the authority to amend
the Plan, shall continue in respect of Awards outstanding on such date.

ARTICLE II

DEFINITIONS

     The words and phrases defined in this Article shall have the meaning set
out in these definitions throughout the Plan, unless the context in which any
such word or phrase appears reasonably requires a broader, narrower or
different meaning.

     (a) “Affiliate” means any Entity that directly or indirectly controls, is
controlled by, or is under common control with any other Entity.

     (b) “Assets” means assets (of any kind) owned by the Company, including,
without limitation, any securities of the Company’s direct or indirect
subsidiaries and any assets of the Company’s direct or indirect subsidiaries.

     (c) “Award” means any grant by the Committee of Restricted Shares or RSUs
to a Holder.

     (d) “Award
Agreement” means a written agreement entered into between the
Company and the Holder setting forth the terms and conditions pursuant to which
an Award is granted.

     (e) “Board” means the board of directors of the Company.

     (f) “Change in Control” means the occurrence of any one of the following
events:

 1 

 

 

     (i) any Person is or becomes the Beneficial Owner (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of
20 percent or more of either (A) the then outstanding Shares (the
“Outstanding Shares”) or (B) the combined voting power of the then
outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Voting
Securities”), excluding any Person who becomes such a Beneficial
Owner in connection with a transaction that complies with clauses
(A), (B) and (C) of paragraph (iii) below;

     (ii) individuals, who, as of the date hereof, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute
at least two-thirds of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two thirds of the
Incumbent Board shall be considered as though such individual was
a member of the Incumbent Board, but excluding, for this purpose,
any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person
other than the Board; or

     (iii) the consummation of a reorganization, merger,
amalgamation, consolidation or similar transaction of the Company
or any of its subsidiaries or the sale, transfer or other
disposition of all or substantially all of the Assets (a
“Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the
case may be, (A) all of the individuals and Entities who were the
beneficial owners, respectively, of the Outstanding Shares and
Outstanding Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than 66
2/3 percent of, respectively, the then outstanding common shares
and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors
(or other governing body), as the case may be, of the Entity
resulting from such Corporate Transaction (including, without
limitation, an Entity which as a result of such transaction owns
the Company or all or substantially all of the Assets either
directly or through one or more subsidiaries or Entities) in
substantially the same proportions as their ownership, immediately
prior to such Corporate Transaction, of the Outstanding Shares and
the Outstanding Voting Securities, as the case may be, (B) no
Person (excluding any Entity, resulting from such Corporate
Transaction or any employee benefit plan (or related trust) of the
Company of such Entity resulting such Corporate Transaction)
beneficially owns, directly or indirectly, 20 percent or more of,
respectively, the then outstanding common shares of the Entity
resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such Entity
except to the extent that such ownership existed prior to the
Corporate Transaction and (C) at least two-thirds of the members
of the board of directors or other governing body of the Entity
resulting from such Corporate Transaction were members of the
Incumbent Board at the time of the approval of such Corporate
Transaction; or

2

 

     (iv) approval or adoption by the Board or the shareholders of
the Company of a plan or proposal which could result directly or
indirectly in the liquidation, transfer, sale or other disposal of
all or substantially all of the Assets or the dissolution of the
Company.

     (g) “Code” means the United States Internal Revenue Code of 1986, as
amended.

     (h) “Committee” means the Compensation Committee of the Board or such
other committee designated by the Board; provided that, with respect to the
grant of Awards to, and the administration of the Plan with respect to,
Directors who are not Employees, the Committee means the Board.

     (i) “Company” means Weatherford International Ltd., a Bermuda exempted
company, or any successor (by acquisition, reincorporation, merger,
consolidation, amalgamation or otherwise).

     (j) “Director” means an individual who is elected by the shareholders of
the Company, or in the case of a vacancy or newly created position, by the
other directors, to serve on the Board who performs the functions of a director
set forth in the Company’s bye-laws.

     (k) “Disability” has the meaning given such term in a Holder’s Award
Agreement; or, if not defined in the Award Agreement, “Disability” means as
determined by the Committee in its discretion exercised in good faith, a
physical or mental condition of the Holder that would entitle him to payment of
disability income payments under the Company’s long-term disability insurance
policy or plan for employees as then in effect; or if the Holder is not
covered, for whatever reason (including, without limitation, because the Holder
is a Director), under the Company’s long-term disability insurance policy or
plan for Employees or if the Company does not maintain such a long-term
disability insurance policy, “Disability” means a permanent and total
disability as defined in section 22(e)(3) of the Code. A determination of
Disability may be made by a physician selected or approved by the Committee
and, in this respect, the Holder shall submit to an examination by such
physician upon request by the Committee.

     (l) “Employee” means a person employed by the Company or any of its
Affiliates as a common law employee.

     (m) “Entity” means any corporation, partnership, association, joint-stock
company, limited liability company, trust, unincorporated organization or other
business entity.

     (n) “Exchange
Act” means the United States Securities Exchange Act of
1934, as amended.

     (o) “Fair
Market Value” of one Share means the last reported sale price
for the Shares on the principal exchange on which the Shares are traded on the
business day immediately preceding the date for which the Fair Market Value is
being determined (or, if the Shares were not traded on such immediately
preceding date, on the immediately preceding date on which the Shares were so
traded).

     (p) “Holder” means a person who has been granted an Award or any
Transferee (as defined in Section 4.6) thereof.

3

 

     (q) “Person” has the meaning given such term in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except
that such term shall not include (i) the Company or any of its subsidiaries,
(ii) a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any of its affiliates (as defined in Rule 12b-2
promulgated under Section 12 of the Exchange Act), (iii) an underwriter
temporarily holding securities pursuant to an offering by the Company of such
securities, or (iv) a corporation or other entity owned, directly or
indirectly, by the shareholders of the Company in the same proportions of their
ownership of the Shares.

     (r) “Plan” means the Weatherford International Ltd. Restricted Share Plan,
as set forth in this document and as it may be amended from time to time.

     (s) “Restricted
Shares” means Shares subject to restrictions pursuant to
an Award Agreement.

     (t) “RSU” means a restricted share unit that represents the right to
receive a Share at a future date after the lapse of any transferability and
forfeiture restrictions in accordance with the terms of the Plan and the
applicable Award Agreement.

     (u) “Share”
or “Shares” means a common share or shares, par value $1.00
per share, of the Company, or, in the event that the Shares are later changed
into or exchanged for a different class of shares or securities of the Company
or another corporation, that other share or security. Shares may be
represented by a certificate or by book or electronic entry.

ARTICLE III

ELIGIBILITY

     The individuals who shall be eligible to receive Awards shall be those key
Employees and Directors who have substantial responsibility for the management
and growth of the Company and its Affiliates as the Committee shall determine
from time to time.

ARTICLE IV

AWARDS

     4.1 Authority to Grant Awards. The Committee may grant Awards to those
key Employees of the Company or any of its Affiliates and the Directors as it
shall from time to time determine, under the terms and conditions of the Plan.
Subject only to any applicable limitations set out in the Plan, the number of
Shares or RSUs to be covered by any Award to be granted to any person shall be
as determined by the Committee.

     4.2 Dedicated Shares. The aggregate number of Shares available for Awards
granted under the Plan is 3,835,000, subject to adjustment in accordance with
the provisions of Section 4.8. To the extent that any outstanding Award
expires, is forfeited or terminates for any reason or any Award is surrendered,
the Shares allocable to such portion of that Award shall again be available for
future Awards granted under the Plan. The Shares available for Awards shall be
Shares held by any subsidiary of the Company (hereinafter referred to as
“treasury shares”).

4

 

     4.3 Maximum Awards for Officers and Directors. No Director or officer of
the Company or any Affiliate may acquire under the Plan more than 1,208,447
Shares, which number represents one percent of the Shares outstanding at the
time the Plan was adopted.

     4.4 Terms of Awards. Each Award shall be evidenced by an Award Agreement
that contains any transferability and forfeiture restrictions and other
provisions not inconsistent with the Plan as the Committee may specify. If the
Committee imposes transferability restrictions on a Holder’s rights with
respect to Restricted Shares, the Committee may issue such instructions to the
Company’s share transfer agent in connection therewith as it deems appropriate.
The Committee may also cause the certificate for Shares acquired pursuant to
an Award to be imprinted with any legend which counsel for the Company
considers advisable with respect to the restrictions or, should the Shares be
represented by book or electronic entry rather than a certificate, the Company
may take such steps to restrict transfer of the Shares as counsel for the
Company considers necessary or advisable to comply with applicable law. The
Company may require that the Share certificates evidencing Restricted Shares
will be held in the custody of the Company until the restrictions thereon have
lapsed, and that the Holder, as a condition of an Award, shall have delivered a
share transfer form, endorsed in blank, relating to the Restricted Shares
covered by the Award.

     Unless a Holder’s Award Agreement expressly provides otherwise and except
as set forth in Section 4.6, a Holder shall not be entitled to transfer Awards
and the Shares acquired pursuant thereto until the earliest to occur of (1) the
Holder’s death before he has otherwise terminated his employment or affiliation
relationship with the Company or its Affiliates, (2) the Holder’s incurring a
Disability while in the employ or affiliation of the Company or an Affiliate,
(3) the retirement of the Holder in good standing from the employ of the
Company or its Affiliates under the then established rules of the Company and
its Affiliates (provided that the Holder shall in such event only be entitled
to transfer a number of the Restricted Shares or RSUs subject to the Award
Agreement equal to a fraction, the numerator of which is the Holder’s total
whole years of service since the Award was granted and the denominator of which
is three), (4) the third anniversary of the date of grant of the Award, or (5)
the occurrence of a Change in Control.

     The prospective recipient of an Award shall not have any rights with
respect to any such Award unless and until he has executed an Award Agreement
and delivered it to the Company.

     4.5 Holder’s Rights as Shareholder. Subject to the terms and conditions
of the Plan, each Holder of Restricted Shares shall have all the rights of a
shareholder with respect to the Shares included in the Award during any period
in which such Shares are subject to forfeiture and restrictions on transfer,
including without limitation, the right to vote such Shares, if unrestricted
Shares of the same class have the right to vote. Dividends paid with respect
to Restricted Shares in cash or property other than Shares or rights to acquire
Shares shall be paid to the Holder currently. Any Shares issued to a Holder
pursuant to dividends in respect of Restricted Shares that are paid in Shares
or rights to acquire Shares shall be added to and become a part of the
Restricted Shares.

     No Holder of RSUs shall have any rights as a shareholder with respect to
the Shares underlying such RSUs until the date Shares are issued pursuant to
the Award Agreement evidencing such RSUs.

     4.6 Non-Transferability. Except as specified in the applicable Award
Agreements or in domestic relations court orders, Awards shall not be
transferable by the Holder other than

5

 

(a) by will or under the laws of descent and distribution, (b) to the
Holder’s spouse, children, brothers, sisters, parents, grandchildren and
grandparents, whether related by blood, marriage or adoption (collectively,
“Immediate Family Members”); to trusts solely for the benefit of the Holder’s
Immediate Family Members; or to partnerships in which the only partners are the
Holder’s Immediate Family Members or trusts solely for the benefit of the
Holder’s Immediate Family Members or (c) to a charity qualified under section
170(c) of the Code (any transferee described in clauses (a) — (c) above is
referred to herein as a “Transferee”). Awards shall not be transferable by a
Transferee other than, in the case of a Transferee who is an individual, by
will or under the laws of descent and distribution. In the discretion of the
Committee, any attempt to transfer an Award other than under the terms of the
Plan and the applicable Award Agreement may terminate the Award.

     4.7 Requirements of Law. The Company shall not be required to cause a
subsidiary to transfer any Shares under any Award if transferring those Shares
would constitute or result in a violation by the Holder or the Company of any
provision of any law, statute or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating
to the registration of securities, the Company shall not be required to cause a
subsidiary to transfer any Shares unless the Committee has received evidence
satisfactory to it to the effect that the Holder of that Award will not
transfer the Shares except in accordance with applicable law, including receipt
of an opinion of counsel satisfactory to the Company to the effect that any
proposed transfer complies with applicable law. The determination by the
Committee on this matter shall be final, binding and conclusive. The Company
may, but shall in no event be obligated to, register any Shares covered by the
Plan pursuant to applicable securities laws of any country or any political
subdivision. In the event any Shares are not registered, the Company may
imprint on the certificate evidencing the Shares or Restricted Shares any
legend that counsel for the Company considers necessary or advisable to comply
with applicable law or, should the Shares or Restricted Shares be represented
by book or electronic entry rather than a certificate, the Company may take
such steps to restrict transfer of the Shares or Restricted Shares as counsel
for the Company considers necessary or advisable to comply with applicable law.
The Company shall not be obligated to take any other affirmative action to
cause the transfer of Shares pursuant to any Award to comply with any law or
regulation of any governmental authority.

     4.8 Changes in the Company’s Capital Structure.

     (a) If the Company shall effect a subdivision or consolidation of
the Shares or other capital readjustment, a distribution of Shares having
an effect similar to a stock dividend, or other increase or reduction of
the number of Shares outstanding, or a conversion of the Company into
another form of legal entity, without receiving consideration in the form
of money, services or property (each, a “Capital Transaction”), then (i)
the number, class or series of Shares subject to outstanding Awards under
the Plan shall be appropriately adjusted so as to allow the Holders of
such Awards to participate in the Capital Transaction in the same manner
as the holders of unrestricted Shares of the same class participate and
(ii) the number of Shares then reserved under the Plan shall be adjusted
by substituting for the total number of Shares then reserved, that number
and class or series of securities that would have been received by the
owner of an equal number of outstanding shares of each class or series of
securities as the result of the Capital Transaction.

6

 

     (b) Subject to Section 4.9, in the event of changes in the
outstanding Shares by reason of recapitalizations, reorganizations,
mergers, amalgamations, consolidations, combinations, exchanges,
conversions or other relevant changes in capitalization occurring after
the date of the grant of any Award and not otherwise provided for by this
Section 4.8 (each, a “Recapitalization Event”), any outstanding Awards
and any Award Agreements evidencing such Awards shall be appropriately
adjusted so as to allow the Holders of such Awards to participate in the
Recapitalization Event in the same manner as the holders of unrestricted
Shares of the same class participate.

     (c) The issuance by the Company of equity interests of any class or
series, or securities convertible into, or exchangeable for, equity
interests of any class or series, for cash or property, or for labor or
services either upon direct sale or upon the exercise of rights or
warrants to subscribe for them, or upon conversion or exchange of equity
interests or obligations of the Company convertible into, or exchangeable
for, shares or other securities, shall not affect, and no adjustment by
reason of such issuance shall be made with respect to, the number, class
or series of Shares then subject to outstanding Awards.

     4.9 Change in Control. In the event of the occurrence of a Change in
Control, a Holder of an outstanding Award shall have a fully nonforfeitable and
transferable interest in his Award and in the Shares acquired pursuant thereto
immediately upon the occurrence of the Change in Control unless otherwise
expressly provided in the Holder’s Award Agreement. The provisions of this
Section 4.9 may not be deleted or amended to adversely affect an Award granted
under the Plan without the prior written consent of the Holder of the Award.

     4.10 Fractional Shares. No fractional Shares shall be acquired pursuant
to the Plan. If the application of any provision of the Plan would yield a
fractional share, such fractional share shall be rounded down to the next whole
share if it is less than 0.5 and rounded up to the next whole share if it is
0.5 or more.

ARTICLE V

ADMINISTRATION

     The Plan shall be administered by the Committee. All questions of
interpretation and application of the Plan and Awards shall be subject to the
determination of the Committee. A majority of the members of the Committee
shall constitute a quorum. All determinations of the Committee shall be made
by a majority of its members. Any decision or determination reduced to writing
and signed by all of the members shall be as effective as if it had been made
by a majority vote at a meeting properly called and held. In carrying out its
authority under the Plan, the Committee shall have full and final authority and
discretion, including but not limited to the following rights, powers and
authorities, to:

     (a) determine the persons to whom and the time or times at which
Awards will be made;

     (b) determine whether Restricted Shares or RSUs will be granted
pursuant to an Award;

7

 

     (c) determine the number of Shares covered under each Award, subject
to the terms of the Plan;

     (d) determine the terms, provisions and conditions of each Award,
which need not be identical and need not match the default terms set
forth in the Plan;

     (e) accelerate the time at which any outstanding lapse restrictions
applicable to an Award will expire;

     (f) prescribe, amend and rescind rules and regulations relating to
administration of the Plan; and

     (g) make all other determinations and take all other actions deemed
necessary, appropriate or advisable for the proper administration of the
Plan.

     The actions of the Committee in exercising all of the rights, powers, and
authorities set out in this Article and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be final, conclusive
and binding on all parties.

ARTICLE VI

AMENDMENT OR TERMINATION OF PLAN

     The Committee may amend, terminate or suspend the Plan at any time, in its
sole and absolute discretion subject to the rights of Holders of outstanding
Awards at the time of such amendment, termination or suspension and provided
that if approval of the Company’s shareholders is required by applicable law or
regulation or the rules of any exchange on which Shares are listed for any
amendment of the Plan, no such amendment shall be effective unless and until
such approval is obtained.

ARTICLE VII

MISCELLANEOUS

     7.1 No Establishment of a Trust Fund. No property shall be set aside nor
shall a trust fund of any kind be established to secure the rights of any
Holder under the Plan. All Holders shall at all times rely solely upon the
general credit of the Company for the payment of any benefit which becomes
payable under the Plan.

     7.2 No Employment or Affiliation Obligation. The granting of any Award
shall not constitute an employment contract, express or implied, nor impose
upon the Company or any of its Affiliates any obligation to employ or continue
to employ, or utilize the services of, any Holder. The right of the Company
and its Affiliates to terminate the employment or affiliation of any person
shall not be diminished or affected by reason of the fact that an Award has
been granted to him or her.

     7.3 Tax Withholding. Except with respect to each Holder who is a Director
that is not an Employee of the Company or its Affiliates, the Company or its
Affiliate as applicable shall be entitled to deduct from other compensation
payable to each Holder any sums required by federal, state or local tax law to
be withheld with respect to the lapse of restrictions on Restricted Shares or
RSUs. In the alternative, the Company may require the Holder of an Award to
pay

8

 

such sums for taxes directly to the Company or its Affiliate as applicable
in cash or by check. The Committee may, in its discretion, permit a Holder to
satisfy any minimum tax withholding obligations arising upon the lapse of
restrictions applicable to Restricted Shares or RSUs by delivering to the
Holder of the Award a reduced number of Shares in the manner specified herein.
If permitted by the Committee and acceptable to the Holder, at the time of the
lapse of restrictions applicable to Restricted Shares or RSUs, the Company
shall (i) calculate the amount of the Company’s or its Affiliate’s minimum
statutory tax withholding obligation on the assumption that all such Restricted
Shares or RSUs are made available for delivery, (ii) reduce the number of such
Shares made available for delivery so that the Fair Market Value of the Shares
withheld on the date the restrictions expire approximates the minimum amount of
tax the Company or its Affiliate is obliged to withhold and (iii) in lieu of
the withheld Shares, remit cash to the United States Treasury and other
applicable governmental authorities, on behalf of the Holder, in the amount of
the minimum withholding tax due. The Company shall withhold only whole Shares
to satisfy its minimum withholding obligation. If the Fair Market Value of the
withheld Shares does not equal the Company’s or its Affiliate’s minimum
withholding tax obligation, the Holder of the Award must satisfy the remaining
minimum withholding obligation in some other manner permitted under this
Section 7.3. The withheld Shares not made available for delivery by the
Company shall be retained as treasury shares, and the Holder’s right, title and
interest in such Shares shall terminate. The Company shall have no obligation
upon lapse of restrictions on Restricted Shares or RSUs until the Company or
its Affiliate as applicable has received payment sufficient to cover all
minimum tax withholding amounts due with respect to the lapse of restrictions.
Neither the Company nor its Affiliate shall be obligated to advise a Holder of
the existence of the tax or the amount which it will be required to withhold.

     7.4 Written Agreement. Each Award shall be embodied in an Award Agreement
which shall be subject to the terms and conditions of the Plan and shall be
signed by the Holder and an executive officer of the Company, other than the
Holder, on behalf of the Company. The Award Agreement may contain any other
provisions that the Committee in its discretion shall deem advisable which are
not inconsistent with the terms of the Plan.

     7.5 Indemnification of the Committee. The Company shall indemnify each
present and future member of the Committee against, and each member of the
Committee shall be entitled without further action on his or her part to
indemnity from the Company for, all expenses (including attorney’s fees, the
amount of judgments and the amount of approved settlements made with a view to
the curtailment of costs of litigation, other than amounts paid to the Company
itself) reasonably incurred by such member in connection with or arising out of
any action, suit or proceeding in which such member may be involved by reason
of such member being or having been a member of the Committee, whether or not
he or she continues to be a member of the Committee at the time of incurring
the expenses, including, without limitation, matters as to which such member
shall be finally adjudged in any action, suit or proceeding to have been
negligent in the performance of such member’s duty as a member of the
Committee. However, this indemnity shall not include any expenses incurred by
any member of the Committee in respect of matters as to which such member shall
have been guilty of gross negligence, willful misconduct, fraud or dishonesty
in the performance of his duty as a member of the Committee. In addition, no
right of indemnification under the Plan shall be available to or enforceable by
any member of the Committee unless, within 60 days after institution of any
action, suit or proceeding, such member shall have offered the Company, in
writing, the opportunity to handle and defend same at its own expense. This
right of indemnification shall inure to the benefit of the heirs, executors or
administrators of each member of the Committee
and shall be in addition to all other rights to which a member of the
Committee may be entitled as a matter of law, contract or otherwise.

9

 

     7.6 Gender. If the context requires, words of one gender when used in the
Plan shall include the other and words used in the singular or plural shall
include the other.

     7.7 Headings. Headings of Articles and Sections are included for
convenience of reference only and do not constitute part of the Plan and shall
not be used in construing the terms of the Plan.

     7.8 Other Compensation Plans. The adoption of the Plan shall not affect
any other option, incentive or other compensation or benefit plans in effect
for the Company or any of its Affiliates, nor shall the Plan preclude the
Company from establishing any other forms of incentive compensation
arrangements for Employees.

     7.9 Other Awards. The grant of an Award shall not confer upon the Holder
the right to receive any future or other Awards under the Plan, whether or not
Awards may be granted to similarly situated Holders, or the right to receive
future Awards upon the same terms or conditions as previously granted.

     7.10
Exercise of Corporate Powers. The existence of outstanding Awards
shall not affect in any way the right or power of the Company or its
shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its
business, any merger, amalgamation or consolidation of the Company, any issue
of debt or equity securities, including, without limitation, preferred or prior
preference shares ahead of or affecting the Shares, the dissolution or
liquidation of the Company, any sale, lease, exchange or other disposition of
all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

     7.11 Persons Residing Outside of the United States. Notwithstanding any
provision of the Plan to the contrary, in order to comply with the laws in
other countries in which the Company and its Affiliates operate or have
Employees, the Committee, in its sole discretion, shall have the power and
authority to:

	 	(a)	 	determine which Affiliates shall be covered by the Plan;
	 
	 	(b)	 	determine which persons employed outside the United States
are eligible to participate in the Plan;
	 
	 	(c)	 	amend or vary the terms of the Plan and the terms and
conditions of any Award granted to persons who reside outside the
United States; and
	 
	 	(d)	 	take any action, before or after an Award is made, that it
deems advisable to obtain or comply with any necessary local
government regulatory exemptions or approvals.

     Notwithstanding the above, the Committee may not take any actions
hereunder, and no Awards shall be granted, that would violate the Exchange Act,
the Code, any securities law or governing statute or any other applicable law,
including, without limitation, the rules and regulations of any stock exchange
on which the Shares are then traded.

     7.12 Governing Law. The provisions of the Plan shall be construed,
administered and governed under the laws of the State of Texas without regard
to its principles of conflict of laws.

10

 

WEATHERFORD INTERNATIONAL LTD.

RESTRICTED SHARE AWARD AGREEMENT

This Restricted Share Award Agreement (this “Agreement”) is made and entered
into by and between Weatherford International Ltd., a Bermuda exempted company
(the “Company”), and                                          (the “Holder”) effective as of the                     
day of                     , 20      , pursuant to the Weatherford International Ltd.
Restricted Share Plan (the “Plan”), which is incorporated by reference herein
in its entirety.

Whereas, the Company desires to grant to the Holder                     shares (the
“Shares”) of the Company’s common shares, par value US$1.00 per share, subject
to the terms and conditions of this Agreement, with a view to increasing the
Holder’s equity interest in the Company; and

Whereas, the Holder desires to have the opportunity to hold the Shares subject
to the terms and conditions of this Agreement;

Now, therefore, in consideration of the premises, mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows:

	1.	 	Definitions. For purposes of this Agreement, the following terms shall
have the meanings indicated:

	 	(a)	 	“Forfeiture Restrictions” shall mean any prohibitions and
restrictions set forth herein or in the Plan with respect to the
sale or other disposition of the Shares and the obligation to
forfeit and surrender such Shares to the Company.
	 
	 	(b)	 	“Restricted Shares” shall mean Shares that are subject to the
Forfeiture Restrictions under this Agreement or the Plan.

Capitalized terms not otherwise defined in this Agreement shall have the
meanings given to such terms in the Plan.

	2.	 	Grant of Restricted Shares. Effective as of the date of this Agreement,
the Company shall cause to be transferred to the Holder                      Shares
as Restricted Shares. The Company will instruct its transfer agent to
create an electronic book entry account evidencing the Restricted Shares
in the Holder’s name, pursuant to which the Holder shall have, except for
the Forfeiture Restrictions, all of the rights of a shareholder of the
Company with respect to such Restricted Shares, including, without
limitation, the right to receive any dividends or distributions allocable
thereto and all voting rights appurtenant thereto. No physical
certificates evidencing the Shares will be issued to the Holder until the
Forfeiture Restrictions lapse. Effective as of the date of this
Agreement, the Holder shall deliver to the Company an irrevocable share
transfer form (the “Share Transfer Form”), endorsed in blank, relating to
the Restricted Shares. The Company and the Holder agree that this
Agreement, together with the Plan and the Employment Agreement between the
Company and the Holder dated                      (the “Employment Agreement”),
sets forth the complete terms of the Award and that the Award shall be
subject to the terms of the Employment Agreement.
	 
	3.	 	Transfer Restrictions. Except as specified herein or in the Plan, the
Restricted Shares may not be sold, assigned, pledged, exchanged,
hypothecated or otherwise transferred, encumbered or disposed of. Any
such attempted sale, assignment, pledge, exchange, hypothecation,
transfer, encumbrance or disposition in violation of this Agreement or the
Plan shall be void and the

1

 

Company shall not be bound thereby. Further, the Shares may not be sold or otherwise disposed
of in any manner that would constitute a violation of any applicable
Bermuda or U.S. federal or state securities laws. Accordingly, the
Holder also agrees (i) that the Company may refuse to register the
transfer of the Shares, including the Restricted Shares, in the register
of members of the Company if such proposed transfer is in violation of
this Agreement or the Plan or would in the opinion of counsel to the
Company constitute a violation of any applicable Bermuda or U.S.
securities laws and (ii) that the Company may give related instructions
to its transfer agent, if any, to stop registration of the transfer of
the Shares, including the Restricted Shares.

	4.	 	Vesting. Except as specified in this Section 4, the Shares shall be
subject to Forfeiture Restrictions. The Forfeiture Restrictions shall
lapse as to the Shares that are granted hereby in accordance with the
following schedule provided that the Shares have not been forfeited to the
Company prior to such date:

	 	 	 	 	 
	 	 	Number of
	 	 	Restricted Shares as to
	 	 	Which Forfeiture
	Lapse Date
	 	Restrictions Lapse

	[to be determined at time of award]

	 
	 	 	 	 

Notwithstanding the foregoing, (a) if (i) the Holder’s employment or
affiliation relationship with the Company and its Affiliates is
terminated prior to the                      anniversary of the date hereof (A) due
to the death or Disability of the Holder, (B) by the Holder for Good
Reason (applicable only if such term and manner of termination is
specifically provided for in the Employment Agreement) or (C) by the
Company for any reason other than Cause (as defined in the Employment
Agreement), or (ii) there is a Change in Control, then, in any such
event, all Forfeiture Restrictions shall immediately lapse with respect
to all Shares subject to Forfeiture Restrictions, or (b) if the Holder
retires in good standing from the employ of the Company or its Affiliates
under the then established rules of the Company and its Affiliates prior
to the                      anniversary of the date hereof, all Forfeiture
Restrictions shall immediately lapse with respect to a number of the
Shares subject to Forfeiture Restrictions equal to a fraction, the
numerator of which is the Holder’s total whole years of service since the
date of this Agreement and the denominator of which is                     . If, prior
to the                      anniversary of the date hereof, the Holder’s employment or
affiliation relationship with the Company and its Affiliates terminates
for any reason other than the Holder’s death, Disability or retirement,
or is terminated by the Holder for any reason other than Good Reason or
by the Company for Cause, any Forfeiture Restrictions that have not
previously lapsed pursuant to the provisions of this Section 4 shall not
lapse, and any Restricted Shares with respect to which the Forfeiture
Restrictions have not lapsed shall be forfeited to the Company. Upon the
lapse of the Forfeiture Restrictions and the satisfaction by the Holder
of any liability arising under Section 6 of this Agreement, the Company
shall deliver or cause to be delivered to the Holder a share certificate
representing the Shares with respect to which Forfeiture Restrictions
have lapsed, and such Shares shall be transferable by the Holder (except
to the extent that any proposed transfer would, in the opinion of counsel
to the Company, constitute a violation of applicable securities laws).
In the event any Restricted Shares are forfeited to the Company pursuant
to this Agreement, the forfeiture will be accomplished by the transfer of
such Restricted Shares to the Company or a subsidiary of the Company
pursuant to the Share Transfer Form and the payment by the Company or
such subsidiary to the Holder of $1.00 in consideration thereof. For
purposes of this Agreement, “Disability” shall have the meaning given
such term in the Employment Agreement.

	5.	 	Capital Adjustments and Reorganizations. The existence of the Restricted
Shares shall not affect in any way the right or power of the Company or
its shareholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s
capital

2

 

structure or its business, any merger, amalgamation or
consolidation of the Company, any issue
of debt or equity securities, including, without limitation, preferred or
prior preference shares ahead of or affecting the Shares, the dissolution
or liquidation of the Company, or any sale, lease, exchange or other
disposition of all or any part of its assets or business, or any other
corporate act or proceeding, whether of a similar character or otherwise.

	6.	 	Tax Withholding. To the extent that the receipt of the Restricted Shares
or the lapse of any Forfeiture Restrictions results in income to the
Holder for federal, state or local income, social insurance or employment
tax purposes with respect to which the Company or any of its Affiliates
has a withholding obligation, the Holder shall deliver to the Company or
such Affiliate at the time of such receipt or lapse, as the case may be,
such minimum amount of money as the Company or such Affiliate may require
to meet its obligation under applicable tax laws or regulations, and, if
the Holder fails to do so, the Company is authorized to withhold from the
Shares or from any cash or share remuneration then or thereafter payable
to the Holder any minimum amount of tax required to be withheld by reason
of such resulting income.
	 
	7.	 	Employment or Affiliation Relationship. For purposes of this Agreement,
the Holder shall be considered to be in the employment of, or affiliated
with, the Company or its Affiliates as long as the Holder has an
employment or affiliation relationship with the Company or its Affiliates.
The Committee shall determine any questions as to whether and when there
has been a termination of such employment or affiliation relationship, and
the cause of such termination, under the Plan and the Committee’s
determination shall be final and binding on all persons.
	 
	8.	 	Section 83(b) Election. The Holder shall not exercise the election
permitted under section 83(b) of the Internal Revenue Code of 1986, as
amended, with respect to the Restricted Shares without the written
approval of the Chief Financial Officer of Weatherford International Ltd.
If the Chief Financial Officer of Weatherford International Ltd. permits
the election, the Holder shall timely pay the Company or its Affiliate the
amount necessary to satisfy the Company’s or its Affiliate’s attendant tax
withholding obligations, if any.
	 
	9.	 	Not an Employment or Affiliation Agreement. This Agreement is not an
employment or affiliation agreement, and no provision of this Agreement
shall be construed or interpreted to create an employment relationship
between the Holder and the Company or any of its Affiliates or guarantee
the right to remain employed by or affiliated with the Company or any of
its Affiliates for any specified term.
	 
	10.	 	Termination of Plan; Discretionary Grant. The Holder acknowledges that
the Committee may unilaterally amend, terminate or suspend the Plan at any
time. The Holder waives any rights to receive future awards under the
Plan if the Plan is terminated or if the Holder’s employment or
affiliation with the Company and its Affiliates terminates for any reason.
The Holder acknowledges and agrees that the award of the Restricted
Shares pursuant to this Agreement is not an element of the Holder’s
compensation, including, but not limited to, with respect to the
determination of any severance, redundancy or resignation payments or
benefits, and has been awarded at the Company’s sole discretion, and that
the award of the Restricted Shares pursuant to this Agreement does not
entitle the Holder to any future awards under the Plan.
	 
	11.	 	Data Privacy. By signing below, the Holder voluntarily acknowledges and
consents to the collection, use, processing and transfer of personal data
as described in this Section. The Holder is not obliged to consent to
such collection, use, processing and transfer of personal data. However,
failure to provide the consent may affect the Holder’s ability to
participate in the Plan. The Company and its Affiliates hold certain
personal information about the Holder, including the Holder’s name, home
address and telephone number, date of birth, social security number or
other employee identification number, salary, nationality, job title, any
shares of stock or directorships held in the Company and details of all
Restricted Shares or any other entitlement to

3

 

shares of stock awarded, cancelled, purchased, vested, unvested or outstanding in the Holder’s
favor, for the purpose of managing and administering the Plan (“Data”).
The Company and its Affiliates will transfer Data amongst themselves as
necessary for the purpose of implementation, administration and
management of the Holder’s participation in the Plan, and the Company and
its Affiliates may each further transfer Data to any third parties
assisting the Company in the implementation, administration and
management of the Plan. These recipients may be located in the European
Economic Area or elsewhere throughout the world, such as the United
States. The Holder authorizes them to receive, possess, use, retain and
transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing the Holder’s participation in
the Plan, including any requisite transfer of such Data as may be
required for the administration of the Plan and the subsequent holding of
Shares on the Holder’s behalf by a broker or other third party with whom
the Holder may elect to deposit any Shares acquired pursuant to the Plan.
The Holder may, at any time, review Data, require any necessary
amendments to it or withdraw the consents herein in writing by contacting
the Company; however, withdrawing consent may affect the Holder’s ability
to participate in the Plan.

	12.	 	Notices. Any notice, instruction, authorization, request or demand
required hereunder shall be in writing, and shall be delivered either by
personal delivery, by facsimile, by certified or registered mail, return
receipt requested, or by courier or delivery service, addressed to the
Company at the address indicated beneath its signature on the execution
page of this Agreement, and to the Holder at the Holder’s address
indicated in the Company’s register of members, or at such other address
and number as a party shall have previously designated by written notice
given to the other party in the manner hereinabove set forth. Notices
shall be deemed given when received, if sent by facsimile (confirmation of
such receipt by confirmed facsimile transmission being deemed receipt of
communications sent by facsimile means); and when delivered and receipted
for (or upon the date of attempted delivery where delivery is refused), if
hand-delivered, sent by express courier or delivery service, or sent by
certified or registered mail, return receipt requested.
	 
	13.	 	Amendment and Waiver. This Agreement may be amended, modified or
superseded only by written instrument executed by the Company and the
Holder. Only a written instrument executed and delivered by the party
waiving compliance hereof shall make any waiver of the terms or conditions
effective. Any waiver granted by the Company shall be effective only if
executed and delivered by a duly authorized executive officer of the
Company other than the Holder. The failure of any party at any time or
times to require performance of any provisions hereof shall in no manner
affect the right to enforce the same. No waiver by any party of any term
or condition, or the breach of any term or condition contained in this
Agreement, in one or more instances, shall be construed as a continuing
waiver of any such condition or breach, a waiver of any other condition,
or the breach of any other term or condition.
	 
	14.	 	Governing Law and Severability. This Agreement shall be governed by the
laws of the State of Texas without regard to its conflicts of law
provisions. The invalidity of any provision of this Agreement shall not
affect any other provision of this Agreement, which shall remain in full
force and effect.
	 
	15.	 	Successors and Assigns. Subject to the limitations which this Agreement
and the Plan impose upon the transferability of the Shares, this Agreement
shall bind, be enforceable by and inure to the benefit of the Company and
its successors and assigns, and to the Holder, his permitted assigns and,
upon the Holder’s death, the Holder’s estate and beneficiaries thereof
(whether by will or the laws of descent and distribution), executors,
administrators, agents, and legal and personal representatives.

4

 

	16.	 	Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be an original for all purposes but all
of which taken together shall constitute but one and the same instrument.

5

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed
by an officer thereunto duly authorized, and the Holder has executed this
Agreement, all as of the date first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	 	 	515 Post Oak Blvd., Ste. 600	 	 
	

	 	 	 	Houston, TX 77027	 	 
	

	 	 	 	Attn: General Counsel	 	 
	

	 	 	 	Facsimile: (713) 693-4484	 	 
	

	 	 	 	 	 	 
	 	 	HOLDER:
	 
	 	 	 	 	 	 
	 	 	
 
	 	 	
 	 	 
	 	 	
 	 	 
	 	 	
 	 	 

6

 

Irrevocable Share Transfer

     Know all men by these presents, that the undersigned, for and in
consideration of $1.00, the receipt of which is hereby acknowledged, has
bargained, sold, assigned and transferred and by these presents does bargain,
sell, assign and transfer unto                                                                                                     ,                                         
common shares of Weatherford International Ltd., a Bermuda exempted company
(the “Company”), standing in the undersigned’s name in the register of members
of the Company; and subject to and in accordance with the Restricted Share
Award Agreement dated                                         , between the Company and the
undersigned, the undersigned does hereby constitute and appoint
                                                                                                                         its true and lawful attorney,
IRREVOCABLY, for the undersigned and in his or her name and stead, to sell
assign, transfer, hypothecate, pledge and make over all or any part of the said
shares and for that purpose to make and execute all necessary acts of
assignment and transfer thereof, and to substitute one or more persons with
like full power, hereby ratifying and confirming all that said attorney or his
substitutes shall lawfully do by virtue hereof.

     In Witness Whereof, the undersigned has hereunto set his or her hand on
this        day of                                         ,                     .

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	[holder's name] 	 
	 	 	 	 
	 

 

WEATHERFORD INTERNATIONAL LTD.

RESTRICTED SHARE AWARD AGREEMENT

This Restricted Share Award Agreement (this “Agreement”) is made and entered
into by and between Weatherford International Ltd., a Bermuda exempted company
(the “Company”), and                                                                                                      (the “Holder”) effective as
of the       day of                     , 20     , pursuant to the Weatherford International
Ltd. Restricted Share Plan (the “Plan”), which is incorporated by reference
herein in its entirety.

Whereas, the Company desires to grant to the Holder                     shares (the
“Shares”) of the Company’s common shares, par value US$1.00 per share, subject
to the terms and conditions of this Agreement, with a view to increasing the
Holder’s equity interest in the Company; and

Whereas, the Holder desires to have the opportunity to hold the Shares subject
to the terms and conditions of this Agreement;

Now, therefore, in consideration of the premises, mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows:

	1.	 	Definitions. For purposes of this Agreement, the following terms shall
have the meanings indicated:

	 	(a)	 	“Forfeiture Restrictions” shall mean any prohibitions and
restrictions set forth herein or in the Plan with respect to the
sale or other disposition of the Shares and the obligation to
forfeit and surrender such Shares to the Company.
	 
	 	(b)	 	“Restricted Shares” shall mean Shares that are subject to the
Forfeiture Restrictions under this Agreement or the Plan.

Capitalized terms not otherwise defined in this Agreement shall have the
meanings given to such terms in the Plan.

	2.	 	Grant of Restricted Shares. Effective as of the date of this Agreement,
the Company shall cause to be transferred to the Holder                      Shares
as Restricted Shares. The Company will instruct its transfer agent to
create an electronic book entry account evidencing the Restricted Shares
in the Holder’s name, pursuant to which the Holder shall have, except for
the Forfeiture Restrictions, all of the rights of a shareholder of the
Company with respect to such Restricted Shares, including, without
limitation, the right to receive any dividends or distributions allocable
thereto and all voting rights appurtenant thereto. No physical
certificates evidencing the Shares will be issued to the Holder until the
Forfeiture Restrictions lapse. Effective as of the date of this
Agreement, the Holder shall deliver to the Company an irrevocable share
transfer form (the “Share Transfer Form”), endorsed in blank, relating to
the Restricted Shares.
	 
	3.	 	Transfer Restrictions. Except as specified herein or in the Plan, the
Restricted Shares may not be sold, assigned, pledged, exchanged,
hypothecated or otherwise transferred, encumbered or disposed of. Any
such attempted sale, assignment, pledge, exchange, hypothecation,
transfer, encumbrance or disposition in violation of this Agreement or the
Plan shall be void and the Company shall not be bound thereby. Further,
the Shares may not be sold or otherwise disposed of in any manner that
would constitute a violation of any applicable Bermuda or U.S. federal or
state securities laws. Accordingly, the Holder also agrees (i) that the
Company may refuse to register the transfer of the Shares, including the
Restricted Shares, in the register of members of

1

 

the Company if such proposed transfer is in violation of this Agreement
or the Plan or would in the opinion of counsel to the Company constitute
a violation of any applicable Bermuda or U.S. securities laws and (ii)
that the Company may give related instructions to its transfer agent, if
any, to stop registration of the transfer of the Shares, including the
Restricted Shares.

	4.	 	Vesting. Except as specified in this Section 4, the Shares shall be
subject to Forfeiture Restrictions. The Forfeiture Restrictions shall
lapse as to the Shares that are granted hereby in accordance with the
following schedule provided that the Shares have not been forfeited to the
Company prior to such date:

	 	 	 	 	 
	 	 	Number of
	 	 	Restricted Shares as to
	 	 	Which Forfeiture
	Lapse Date
	 	Restrictions Lapse

	[to be determined at time of award]

	 
	 	 	 	 

Notwithstanding the foregoing, (a) if (i) the Holder’s employment or
affiliation relationship with the Company and its Affiliates is
terminated prior to the                      anniversary of the date hereof due to the
death or Disability of the Holder, or (ii) there is a Change in Control,
then, in any such event, all Forfeiture Restrictions shall immediately
lapse with respect to all Shares subject to Forfeiture Restrictions, or
(b) if the Holder retires in good standing from the employ of the Company
or its Affiliates under the then established rules of the Company and its
Affiliates prior to the                      anniversary of the date hereof, all
Forfeiture Restrictions shall immediately lapse with respect to a number
of the Shares subject to Forfeiture Restrictions equal to a fraction, the
numerator of which is the Holder’s total whole years of service since the
date of this Agreement and the denominator of which is                     . If the
Holder’s employment or affiliation relationship with the Company and its
Affiliates terminates before the                      anniversary of the date hereof
for any reason other than the Holder’s death, Disability or retirement,
any Forfeiture Restrictions that have not previously lapsed pursuant to
the provisions of this Section 4 shall not lapse, and any Restricted
Shares with respect to which the Forfeiture Restrictions have not lapsed
shall be forfeited to the Company. Upon the lapse of the Forfeiture
Restrictions and the satisfaction by the Holder of any liability arising
under Section 6 of this Agreement, the Company shall deliver or cause to
be delivered to the Holder a share certificate representing the Shares
with respect to which Forfeiture Restrictions have lapsed, and such
Shares shall be transferable by the Holder (except to the extent that any
proposed transfer would, in the opinion of counsel to the Company,
constitute a violation of applicable securities laws). In the event any
Restricted Shares are forfeited to the Company pursuant to this
Agreement, the forfeiture will be accomplished by the transfer of such
Restricted Shares to the Company or a subsidiary of the Company pursuant
to the Share Transfer Form and the payment by the Company or such
subsidiary to the Holder of $1.00 in consideration thereof.

	5.	 	Capital Adjustments and Reorganizations. The existence of the Restricted
Shares shall not affect in any way the right or power of the Company or
its shareholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s
capital structure or its business, any merger, amalgamation or
consolidation of the Company, any issue of debt or equity securities,
including, without limitation, preferred or prior preference shares ahead
of or affecting the Shares, the dissolution or liquidation of the Company,
or any sale, lease, exchange or other disposition of all or any part of
its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.
	 
	6.	 	Tax Withholding. To the extent that the receipt of the Restricted Shares
or the lapse of any Forfeiture Restrictions results in income to the
Holder for federal, state or local income, social

2

 

insurance or employment tax purposes with respect to which the Company or
any of its Affiliates has a withholding obligation, the Holder shall
deliver to the Company or such Affiliate at the time of such receipt or
lapse, as the case may be, such minimum amount of money as the Company or
such Affiliate may require to meet its obligation under applicable tax
laws or regulations, and, if the Holder fails to do so, the Company is
authorized to withhold from the Shares or from any cash or share
remuneration then or thereafter payable to the Holder any minimum amount
of tax required to be withheld by reason of such resulting income.

	7.	 	Employment or Affiliation Relationship. For purposes of this Agreement,
the Holder shall be considered to be in the employment of, or affiliated
with, the Company or its Affiliates as long as the Holder has an
employment or affiliation relationship with the Company or its Affiliates.
The Committee shall determine any questions as to whether and when there
has been a termination of such employment or affiliation relationship, and
the cause of such termination, under the Plan and the Committee’s
determination shall be final and binding on all persons.
	 
	8.	 	Section 83(b) Election. The Holder shall not exercise the election
permitted under section 83(b) of the Internal Revenue Code of 1986, as
amended, with respect to the Restricted Shares without the written
approval of the Chief Financial Officer of Weatherford International Ltd.
If the Chief Financial Officer of Weatherford International Ltd. permits
the election, the Holder shall timely pay the Company or its Affiliate the
amount necessary to satisfy the Company’s or its Affiliate’s attendant tax
withholding obligations, if any.
	 
	9.	 	Not an Employment or Affiliation Agreement. This Agreement is not an
employment or affiliation agreement, and no provision of this Agreement
shall be construed or interpreted to create an employment relationship
between the Holder and the Company or any of its Affiliates or guarantee
the right to remain employed by or affiliated with the Company or any of
its Affiliates for any specified term.
	 
	10.	 	Termination of Plan; Discretionary Grant. The Holder acknowledges that
the Committee may unilaterally amend, terminate or suspend the Plan at any
time. The Holder waives any rights to receive future awards under the
Plan if the Plan is terminated or if the Holder’s employment or
affiliation with the Company and its Affiliates terminates for any reason.
The Holder acknowledges and agrees that the award of the Restricted
Shares pursuant to this Agreement is not an element of the Holder’s
compensation, including, but not limited to, with respect to the
determination of any severance, redundancy or resignation payments or
benefits, and has been awarded at the Company’s sole discretion, and that
the award of the Restricted Shares pursuant to this Agreement does not
entitle the Holder to any future awards under the Plan.
	 
	11.	 	Data Privacy. By signing below, the Holder voluntarily acknowledges and
consents to the collection, use, processing and transfer of personal data
as described in this Section. The Holder is not obliged to consent to
such collection, use, processing and transfer of personal data. However,
failure to provide the consent may affect the Holder’s ability to
participate in the Plan. The Company and its Affiliates hold certain
personal information about the Holder, including the Holder’s name, home
address and telephone number, date of birth, social security number or
other employee identification number, salary, nationality, job title, any
shares of stock or directorships held in the Company and details of all
Restricted Shares or any other entitlement to shares of stock awarded,
cancelled, purchased, vested, unvested or outstanding in the Holder’s
favor, for the purpose of managing and administering the Plan (“Data”).
The Company and its Affiliates will transfer Data amongst themselves as
necessary for the purpose of implementation, administration and management
of the Holder’s participation in the Plan, and the Company and its
Affiliates may each further transfer Data to any third parties assisting
the Company in the implementation, administration and management of the
Plan. These recipients may be located in the European Economic Area or
elsewhere throughout the world, such as the United States. The Holder
authorizes them to receive, possess, use, retain and transfer the Data, in
electronic or other

3

 

form, for the purposes of implementing, administering and managing the
Holder’s participation in the Plan, including any requisite transfer of
such Data as may be required for the administration of the Plan and the
subsequent holding of Shares on the Holder’s behalf by a broker or other
third party with whom the Holder may elect to deposit any Shares acquired
pursuant to the Plan. The Holder may, at any time, review Data, require
any necessary amendments to it or withdraw the consents herein in writing
by contacting the Company; however, withdrawing consent may affect the
Holder’s ability to participate in the Plan.

	12.	 	Notices. Any notice, instruction, authorization, request or demand
required hereunder shall be in writing, and shall be delivered either by
personal delivery, by facsimile, by certified or registered mail, return
receipt requested, or by courier or delivery service, addressed to the
Company at the address indicated beneath its signature on the execution
page of this Agreement, and to the Holder at the Holder’s address
indicated in the Company’s register of members, or at such other address
and number as a party shall have previously designated by written notice
given to the other party in the manner hereinabove set forth. Notices
shall be deemed given when received, if sent by facsimile (confirmation of
such receipt by confirmed facsimile transmission being deemed receipt of
communications sent by facsimile means); and when delivered and receipted
for (or upon the date of attempted delivery where delivery is refused), if
hand-delivered, sent by express courier or delivery service, or sent by
certified or registered mail, return receipt requested.
	 
	13.	 	Amendment and Waiver. This Agreement may be amended, modified or
superseded only by written instrument executed by the Company and the
Holder. Only a written instrument executed and delivered by the party
waiving compliance hereof shall make any waiver of the terms or conditions
effective. Any waiver granted by the Company shall be effective only if
executed and delivered by a duly authorized executive officer of the
Company other than the Holder. The failure of any party at any time or
times to require performance of any provisions hereof shall in no manner
affect the right to enforce the same. No waiver by any party of any term
or condition, or the breach of any term or condition contained in this
Agreement, in one or more instances, shall be construed as a continuing
waiver of any such condition or breach, a waiver of any other condition,
or the breach of any other term or condition.
	 
	14.	 	Governing Law and Severability. This Agreement shall be governed by the
laws of the State of Texas without regard to its conflicts of law
provisions. The invalidity of any provision of this Agreement shall not
affect any other provision of this Agreement, which shall remain in full
force and effect.
	 
	15.	 	Successors and Assigns. Subject to the limitations which this Agreement
and the Plan impose upon the transferability of the Shares, this Agreement
shall bind, be enforceable by and inure to the benefit of the Company and
its successors and assigns, and to the Holder, his permitted assigns and,
upon the Holder’s death, the Holder’s estate and beneficiaries thereof
(whether by will or the laws of descent and distribution), executors,
administrators, agents, and legal and personal representatives.
	 
	16.	 	Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be an original for all purposes but all
of which taken together shall constitute but one and the same instrument.

4

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed
by an officer thereunto duly authorized, and the Holder has executed this
Agreement, all as of the date first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	 	 	
 
	 
	 	 	 	 	 	 
	

	 	 	 	515 Post Oak Blvd., Ste. 600	 	 
	

	 	 	 	Houston, TX 77027	 	 
	

	 	 	 	Attn: General Counsel	 	 
	

	 	 	 	Facsimile: (713) 693-4484	 	 
	

	 	 	 	 	 	 
	 	 	HOLDER:
	 
	 	 	 	 	 	 
	 	 	
 
	 	 	
 	 	 
	 	 	
 	 	 
	 	 	
 	 	 

5

 

Irrevocable Share Transfer

     Know all men by these presents, that the undersigned, for and in
consideration of $1.00, the receipt of which is hereby acknowledged, has
bargained, sold, assigned and transferred and by these presents does bargain,
sell, assign and transfer unto                                                                                                     ,                     
common shares of Weatherford International Ltd., a Bermuda exempted company
(the “Company”), standing in the undersigned’s name in the register of members
of the Company; and subject to and in accordance with the Restricted Share
Award Agreement dated                                         , between the Company and the
undersigned, the undersigned does hereby constitute and appoint
                                                                                                                         its true and lawful attorney,
IRREVOCABLY, for the undersigned and in his or her name and stead, to sell
assign, transfer, hypothecate, pledge and make over all or any part of the said
shares and for that purpose to make and execute all necessary acts of
assignment and transfer thereof, and to substitute one or more persons with
like full power, hereby ratifying and confirming all that said attorney or his
substitutes shall lawfully do by virtue hereof.

     In Witness Whereof, the undersigned has hereunto set his or her hand on
this        day of                     ,                     .

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	[holder's name]exv4w1

 

EXHIBIT 4.1

OMNIBUS INSTRUMENT

     WHEREAS, the parties named herein desire to enter into certain Program
Documents contained herein, each such document dated as of this 10th day of
September, 2004, relating to the issuance by Principal Life Income Fundings
Trust 2004-45 (the “Trust”) of Notes to investors under Principal Life’s
secured notes program;

     WHEREAS, the Trust is a trust and will be organized under and its
activities will be governed by the provisions of the Trust Agreement (set forth
in Section A of this Omnibus Instrument), dated as of the date of the Pricing
Supplement (attached to this Omnibus Instrument as Exhibit D) (the “Pricing
Supplement”), by and between the parties thereto indicated in Section F herein;

     WHEREAS, certain expense and indemnification arrangements between
Principal Life and the Trustee, on behalf of itself and on behalf of the Trust,
are governed pursuant to the provisions of the Expense and Indemnity Agreement
dated as of March 5, 2004, by and between Principal Life and the Trustee;

     WHEREAS, certain licensing arrangements between the Trust and Principal
Financial Services, Inc. will be governed pursuant to the provisions of the
License Agreement (set forth in Section B of this Omnibus Instrument), dated as
of the date of the Pricing Supplement, by and between the parties thereto
indicated in Section F herein;

     WHEREAS, certain custodial arrangements of the Funding Agreement and the
Guarantee will be governed pursuant to the provisions of the Custodial
Agreement (the “Custodial Agreement”) dated as of March 5, 2004 by and among
Bankers Trust Company, N.A., acting as custodian (the “Custodian”), the
Indenture Trustee and the Trustee, on behalf of the Trust;

     WHEREAS, the Notes will be issued pursuant to the Indenture (set forth in
Section C of this Omnibus Instrument), dated as of the Original Issue Date, by
and between the parties thereto indicated in Section F herein;

     WHEREAS, the sale of the Notes will be governed by the Terms Agreement
(set forth in Section D of this Omnibus Instrument), dated the date of the
Pricing Supplement, by and among the parties thereto indicated in Section F
herein; and

     WHEREAS, certain agreements relating to the Notes, the Funding Agreement
and the Guarantee are set forth in the Coordination Agreement (set forth in
Section E of this Omnibus Instrument), dated as of the date of the Pricing
Supplement, by and among the parties thereto indicated in Section F herein.

     All capitalized terms used herein and not otherwise defined will have the
meanings set forth in the Indenture.

[Remainder of Page Left Intentionally Blank.]

 

 

SECTION A

TRUST AGREEMENT

     This TRUST AGREEMENT (this “Trust Agreement”), dated as of the date of the
Pricing Supplement, is entered into by and between GSS Holdings II, Inc., a
Delaware corporation, as trust beneficial owner (the “Trust Beneficial Owner”),
and U.S. Bank Trust National Association, a national banking association, as
Trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, the Trust Beneficial Owner and the Trustee desire to authorize
the issuance of a Trust Beneficial Interest and a series of Notes in connection
with the entry into this Trust Agreement;

     WHEREAS, all things necessary to make this Trust Agreement a valid and
legally binding agreement of the Trustee and the Trust Beneficial Owner,
enforceable in accordance with its terms, have been done;

     WHEREAS, the parties intend to provide for, among other things, (i) the
issuance and sale of the Notes (pursuant to the Indenture, the Distribution
Agreement and the related Terms Agreement) and the Trust Beneficial Interest,
(ii) the use of the proceeds of the sale of the Notes and Trust Beneficial
Interest to acquire the Funding Agreement, the payment obligations of which
will be fully and unconditionally guaranteed by the Guarantee, and (iii) all
other actions deemed necessary or desirable in connection with the transactions
contemplated by this Trust Agreement; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Trust Terms, dated as of March 5, 2004, and attached to the
Omnibus Instrument as Exhibit A (the “Standard Trust Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Trust Terms (the Standard
Trust Terms and this Trust Agreement, collectively, the “Trust Agreement”).

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Trust Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference with the
same force and effect as though fully set forth herein. To the extent that the
terms set forth in Article 2 of this Trust Agreement are inconsistent with the
terms of the Standard Trust Terms, the terms set forth in Article 2 herein
shall apply.

A-1

 

ARTICLE 2

     Section 2.01 Name. The Trust created and governed by the Trust Agreement
shall be the trust specified in the Omnibus Instrument. The name of the Trust
shall be the name specified in the first paragraph of the Omnibus Instrument,
as such name may be modified from time to time by the Trustee following written
notice to the Trust Beneficial Owner.

     Section 2.02 Jurisdiction. The Trust is hereby organized in, and formed
under and pursuant to, the laws of the State of New York.

     Section 2.03 Initial Capital Contribution and Ownership. The Trust
Beneficial Owner has paid or has caused to be paid to, or to an account at the
direction of, the Trustee, on the date hereof, the sum of $15 (or, in the case
of Notes issued with original issue discount, such amount multiplied by the
issue price of the Notes). The Trustee hereby acknowledges receipt in trust
from the Trust Beneficial Owner, as of the date hereof, of the foregoing
contribution, which shall be used along with the proceeds from the sale of the
series of Notes to purchase the Funding Agreement. Upon the creation of the
Trust and the registration of the Trust Beneficial Interest in the Securities
Register (as defined in the Trust Agreement) by the Registrar in the name of
the Trust Beneficial Owner, the Trust Beneficial Owner shall be the sole
beneficial owner of the Trust.

     Section 2.04 Acknowledgment. The Trustee, on behalf of the Trust,
expressly acknowledges its duties and obligations set forth in the Standard
Trust Terms incorporated herein.

     Section 2.05 Additional Terms.

     None

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Trust Agreement will enter into the Trust Agreement by
executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Trustee and the Trust Beneficial
Owner hereby agree that the Trust Agreement will constitute a legal, valid and
binding agreement between the Trustee and the Trust Beneficial Owner.

     All terms relating to the Trust or the series of Notes not otherwise
included in the Trust Agreement will be as specified in the Omnibus Instrument
or Pricing Supplement, as indicated herein.

A-2

 

     Section 2.07 Governing Law. The Trust Agreement will be governed by, and
construed in accordance with, the laws of the State of New York.

     Section 2.08 Counterparts. The Trust Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

A-3

 

SECTION B

LICENSE AGREEMENT

     This LICENSE AGREEMENT (this “License Agreement”), dated as of the date of
the Pricing Supplement, is entered into by and between Principal Financial
Services, Inc., an Iowa corporation with its principal place of business at 711
High Street, Des Moines, Iowa 50392 (the “Licensor”), and the Principal Life
Income Fundings Trust specified in the Omnibus Instrument (the “Licensee”).

W I T N E S S E T H:

     WHEREAS, the Licensor is the owner of certain trademarks and service marks
and registrations and pending applications therefor, and may acquire additional
trademarks and service marks in the future, all as described more fully below;

     WHEREAS, the Licensee desires to use certain of the Licensor’s trademarks
and service marks in connection with the Licensee’s activities, as described
more fully below;

     WHEREAS, the Licensor and the Licensee wish to formalize the agreement
between them regarding the Licensee’s use of the Licensor’s marks; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard License Agreement Terms, dated March 5, 2004, and attached to
the Omnibus Instrument as Exhibit B (the “Standard License Agreement Terms”)
and all capitalized terms not otherwise defined herein (including the recitals
hereof) shall have the meanings set forth in the Standard License Agreement
Terms (the Standard License Agreement Terms and this License Agreement,
collectively, the “License Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and for other good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard License Agreement Terms (except to the
extent expressly modified herein) are hereby incorporated herein by reference
with the same force and effect as though fully set forth herein. To the extent
that the terms set forth in Article 2 of this License Agreement are
inconsistent with the terms of the Standard License Agreement Terms, the terms
set forth in Article 2 herein shall apply.

ARTICLE 2

     Section 2.01 Additional Terms.

     None

B-1

 

     Section 2.02 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the License Agreement will enter into the License Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Licensor and the Licensee hereby
agree that the License Agreement will constitute a legal, valid and binding
agreement between the Licensor and the Licensee.

     All terms relating to the Trust or the Notes not otherwise included in the
License Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.03 Counterparts. The License Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

B-2

 

SECTION C

INDENTURE

     This INDENTURE (this “Indenture”) is entered into as of the Original Issue
Date by and between the Principal Life Income Fundings Trust specified in the
Omnibus Instrument (the “Trust”) and Citibank, N.A., as indenture trustee (the
“Indenture Trustee”).

     Citibank, N.A., in its capacity as indenture trustee, hereby accepts its
role as Registrar, Paying Agent, Transfer Agent and Calculation Agent
hereunder.

     References herein to “Indenture Trustee,” “Registrar,” “Transfer Agent,”
“Paying Agent” or “Calculation Agent” shall include the permitted successors
and assigns of any such entity from time to time.

W I T N E S S E T H:

     WHEREAS, the Trust has duly authorized the execution and delivery of this
Indenture to provide for the issuance of Notes;

     WHEREAS, all things necessary to make this Indenture a valid and legally
binding agreement of the Trust and the other parties to this Indenture,
enforceable in accordance with its terms, have been done, and the Trust
proposes to do all things necessary to make the Notes, when executed by the
Trust and authenticated and delivered pursuant hereto, valid and legally
binding obligations of the Trust as hereinafter provided; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Indenture Terms, dated as of March 5, 2004, and attached to
the Omnibus Instrument as Exhibit C (the “Standard Indenture Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Indenture Terms (the Standard
Indenture Terms and this Indenture, collectively, the “Indenture”).

     NOW, THEREFORE, for and in consideration of the premises and the purchase
of the Notes by the Holders thereof, it is mutually covenanted and agreed by
each of the parties hereto as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Indenture Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference (with
the same force and effect as though fully set forth herein). To the extent
that the terms set forth in Article 2 of this Indenture are inconsistent with
the terms of the Standard Indenture Terms, the terms set forth in Article 2
herein shall apply.

C-1

 

ARTICLE 2

     Section 2.01 Agreement to be Bound. Each of the Trust, the Indenture
Trustee, the Registrar, the Transfer Agent, the Paying Agent and the
Calculation Agent hereby agrees to be bound by all of the terms, provisions and
agreements set forth in the Indenture, with respect to all matters contemplated
in the Indenture, including, without limitation, those relating to the issuance
of the below-referenced Notes.

     Section 2.02 Designation of the Trust, the Notes, the Funding Agreement
and the Guarantee. The Trust created by the Trust Agreement and referred to in
the Indenture is the Principal Life Income Fundings Trust specified in the
Omnibus Instrument. The Notes issued by the Trust and governed by the
Indenture shall be the Notes specified in the Pricing Supplement. The Funding
Agreement designated hereby is the Funding Agreement designated in the Pricing
Supplement dated as of the Original Issue Date between the Trust and Principal
Life. The Guarantee designated hereby is the Guarantee dated as of the Original
Issue Date of PFG.

     Section 2.03 Additional Terms.

     None

     Section 2.04 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Indenture will enter into the Indenture by executing
the Omnibus Instrument.

     By executing the Omnibus Instrument, the Indenture Trustee, the Registrar,
the Transfer Agent, the Paying Agent, the Calculation Agent and the Trust
hereby agree that the Indenture will constitute a legal, valid and binding
agreement between the Indenture Trustee, the Registrar, the Transfer Agent, the
Paying Agent, the Calculation Agent and the Trust.

     All terms relating to the Trust or the Notes not otherwise included in the
Indenture will be as specified in the Omnibus Instrument or Pricing Supplement,
as indicated herein.

     Section 2.05 Counterparts. The Indenture, through the Omnibus Instrument,
may be executed in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute one
and the same instrument.

[Remainder of Page Left Intentionally Blank.]

C-2

 

SECTION D

TERMS AGREEMENT

     This TERMS AGREEMENT (this “Terms Agreement”) is entered into as of the
Original Issue Date by and among Principal Life Insurance Company (“Principal
Life”), Principal Financial Group, Inc. (“PFG”), the Principal Life Income
Fundings Trust specified in the Omnibus Instrument (the “Trust”) and the
Purchasing Agent specified in the Pricing Supplement (the “Purchasing Agent”).

W I T N E S S E T H:

     WHEREAS, Principal Life, PFG and the agents named therein, including the
Purchasing Agent have entered into that certain Distribution Agreement dated
March 5, 2004 (the “Distribution Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, each of the parties hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. The provisions of the
Distribution Agreement and the related definitions (unless otherwise specified
herein) are incorporated by reference herein and shall be deemed to have the
same force and effect as if set forth in full herein.

ARTICLE 2

     Section 2.01 Addition of Trust as Party to Distribution Agreement.

     Pursuant to Section 1 of the Distribution Agreement, each of the
undersigned parties hereby acknowledges and agrees that the Trust, upon
execution hereof by the Trust and the other parties to the Distribution
Agreement (other than any other trusts organized in connection with the
Registration Statement that are party thereto as of the date hereof), shall
become a Trust for purposes of the Distribution Agreement in accordance with
the terms thereof, in respect of the Notes, with all the authority, rights,
powers, duties and obligations of a Trust under the Distribution Agreement.
The Trust confirms that any agreement, covenant, acknowledgment, representation
or warranty under the Distribution Agreement applicable to the Trust is made by
the Trust at the date hereof, unless another time or times are specified in the
Distribution Agreement, in which case such agreement, covenant, acknowledgment,
representation or warranty shall be deemed to be confirmed by the Trust at such
specified time or times.

     Section 2.02 Purchase of Notes as Principal.

     (a) Subject in all respects to the terms and conditions of the
Distribution Agreement, the Trust hereby agrees to sell to the Purchasing Agent
and the Purchasing Agent hereby agrees to purchase the Notes having the terms
specified in the Pricing Supplement relating to such Notes.

D-1

 

     (b) In connection with any purchase of Notes from the Trust by the
Purchasing Agent as principal, the parties agrees that the items specified on
Schedule I of the Omnibus Instrument will be delivered as of the Settlement
Date.

     Section 2.03 Termination. Upon the termination of this Terms Agreement
pursuant to Section 13(b) of the Distribution Agreement the undersigned parties
hereby agree to that the expenses reasonably incurred prior to or in connection
with such termination will be borne by Principal Life and PFG.

     Section 2.04 Governing Law. This Terms Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the principles of conflicts of laws thereof.

     Section 2.05 Notices. For purposes of Section 14 of the Distribution
Agreement, the Trust’s communications details are as set forth in Section E of
the Omnibus Instrument.

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Terms Agreement will enter into this Terms Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Terms Agreement will constitute a legal, valid and binding agreement by and
among such parties.

     All terms relating to the Trust or the Notes not otherwise included in
this Terms Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.07 Counterparts. This Terms Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

D-2

 

SECTION E

COORDINATION AGREEMENT

     This COORDINATION AGREEMENT (this “Coordination Agreement”), dated as of
the date of the Pricing Supplement, is entered into by and among Principal Life
Insurance Company (“Principal Life”), Principal Financial Group, Inc. (“PFG”),
the Principal Life Income Fundings Trust specified in the Omnibus Instrument
(the “Trust”), Principal Financial Services, Inc. (“PFSI”), Bankers Trust
Company, N.A. and Citibank, N.A., as indenture trustee (the “Indenture
Trustee”).

W I T N E S S E T H

     WHEREAS, the Trust will enter into the Funding Agreement with Principal
Life dated as of the Original Issue Date specified in the Pricing Supplement;

     WHEREAS, PFG will issue a Guarantee to the Trust as of the Original Issue
Date specified in the Pricing Supplement, which will fully and unconditionally
guarantee the payment obligations of Principal Life under the Funding
Agreement;

     WHEREAS, the Purchasing Agent (as defined in the Distribution Agreement)
have agreed to sell the Notes in accordance with the Registration Statement;

     WHEREAS, the Trust intends to issue the Notes in accordance with the
Indenture, to collaterally assign to, and grant a security interest in, the
Funding Agreement and the Guarantee to and in favor of the Indenture Trustee in
accordance with the Indenture to secure payment of the Notes;

     WHEREAS, the Custodian will hold the Funding Agreement and the Guarantee
on behalf of the Indenture Trustee pursuant to the terms of the Custodial
Agreement; and

     WHEREAS, certain licensing arrangements between the Trust and PFSI will be
governed pursuant to the provisions of the License Agreement.

     NOW, THEREFORE, to give effect to the agreements and arrangements
established under the Terms Agreement included in the Omnibus Instrument, as
applicable, the Trust Agreement, the Indenture and the Notes, and in
consideration of the agreements and obligations set forth herein and for other
good and valuable consideration, the sufficiency of which are hereby
acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Delivery of the Funding Agreement and the Guarantee. The
Trust hereby authorizes the Custodian, on behalf of the Indenture Trustee, to
receive the Funding Agreement from Principal Life and the Guarantee from PFG
pursuant to the assignment of the Funding Agreement and Guarantee (the
“Assignment”), to be entered into on the Original Issue Date, included in the
closing instrument dated as of the Original Issue Date (the “Closing
Instrument”).

E-1

 

     Section 1.02 Issuance and Purchase of the Notes.

     (a) Delivery of the Funding Agreement and the Guarantee to the Custodian,
on behalf of the Indenture Trustee, pursuant to the Assignment or execution of
the cross receipt contained in the Closing Instrument shall be confirmation of
payment by the Trust for the Funding Agreement.

     (b) The Trust hereby directs the Indenture Trustee, upon receipt by the
Custodian, on behalf of the Indenture Trustee, of the Funding Agreement
pursuant to the Assignment and upon receipt by the Custodian, on behalf of the
Indenture Trustee, of the Guarantee, (i) to authenticate the certificates
representing the Notes (the “Notes Certificates”) in accordance with the
Indenture and (ii) to (A) deliver each relevant Notes Certificate to the
clearing system or systems identified in each such Notes Certificate, or to the
nominee of such clearing system, or the custodian thereof, for credit to such
accounts as the Purchasing Agent may direct, or (B) deliver each relevant Notes
Certificate to the purchasers thereof as identified by the Purchasing Agent.

ARTICLE 2

     Section 2.01 Directions Regarding Periodic Payments. As registered owner
of the Funding Agreement and the Guarantee as collateral securing payments on
the Notes, the Indenture Trustee will receive payments on the Funding Agreement
and the Guarantee on behalf of the Trust. The Trust hereby directs the
Indenture Trustee to use such funds to make payments on behalf of the Trust
pursuant to the Trust Agreement and the Indenture.

     Section 2.02 Maturity of the Funding Agreement. Upon the maturity of the
Funding Agreement and the return of funds thereunder, the Trust hereby directs
the Indenture Trustee to set aside from such funds an amount sufficient for the
repayment of the outstanding principal on the Notes and Trust Beneficial
Interest when due.

ARTICLE 3

     Section 3.01 Certificates. Principal Life hereby agrees to deliver an
Officer’s Certificate, a copy of which is attached hereto as Exhibit E, on a
quarterly basis to any rating agency currently rating the Program. The Trust
hereby agrees to deliver an Officer’s Certificate, a copy of which is attached
hereto as Exhibit F, on a quarterly basis to any rating agency currently rating
the Program.

     Section 3.02 Filings. Principal Life hereby covenants to file, or cause
to be filed, in a timely manner on behalf of the Trust all reports,
certifications or similar filings required under the Securities Exchange Act of
1934, as amended.

ARTICLE 4

     Section 4.01 No Additional Liability. Nothing in this Coordination
Agreement shall impose any liability or obligation on the part of any party to
this Coordination Agreement to make any payment or disbursement in addition to
any liability or obligation such party has under the Program Documents, except
to the extent that a party has actually received funds which it is obligated to
disburse pursuant to this Coordination Agreement.

E-2

 

     Section 4.02 No Conflict. This Coordination Agreement is intended to be
in furtherance of the agreements reflected in the documents related to the
Program Documents, and not in conflict. To the extent that a provision of this
Coordination Agreement conflicts with the provisions of one or more Program
Documents, the provisions of such Program Documents shall govern.

     Section 4.03 Governing Law. This Coordination Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to the principles of conflicts of laws thereof.

     Section 4.04 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.05 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.06 Notices. All demands, notices and communications under this
Coordination Agreement shall be in writing and shall be deemed to have been
duly given upon receipt at the addresses set forth below:

	 	 	 
	To the Trust:
	 	 
	 
	

	 	Principal Life Income Fundings
Trust (followed by the number set forth in the Omnibus Instrument)
	

	 	c/o U.S. Bank Trust National Association
	

	 	100 Wall Street, 16th Floor
	

	 	New York, New York 10005
	

	 	Attention: Corporate Trust Administration
	

	 	Telephone: (212) 361-2458
	

	 	Facsimile: (212) 809-5459 and (212) 509-3384
	 
	To the Indenture Trustee:
	 	 
	 
	

	 	Citibank, N.A.
	

	 	Citibank Agency & Trust
	

	 	111 Wall Street, 14th Floor, Zone 3
	

	 	New York, New York 10005
	

	 	Attention: Nancy Forte
	

	 	Telephone: (212) 657-4703
	

	 	Facsimile: (212) 657-3862

E-3

 

	 	 	 
	To Principal Life:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To PFG:

	 
	

	 	Principal Financial Group, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Principal Financial
Services, Inc.:
	 	 
	 
	

	 	Principal Financial Services, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011

E-4

 

	 	 	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Bankers Trust Company, N.A:
	 	 
	 
	

	 	Bankers Trust Company, N.A.
	

	 	665 Locust Street
	

	 	Des Moines, Iowa 50309-3702
	

	 	Attention: Angela C. Brick
	

	 	Telephone: (515) 245-2820
	

	 	Facsimile: (515) 247-2101

or at such other address as shall be designated by any such party in a written
notice to the other parties.

ARTICLE 5

     Section 5.01 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Coordination Agreement will enter into this
Coordination Agreement by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Coordination Agreement will constitute a legal, valid and binding agreement by
and among the Trust, Principal Life, PFG, PFSI, the Custodian and the Indenture
Trustee.

     All terms relating to the Trust or the Notes not otherwise included in
this Coordination Agreement will be as specified in the Omnibus Instrument or
Pricing Supplement, as indicated herein.

     Section 5.02 Acknowledgment. Principal Life hereby acknowledges Section
2.10 of the Indenture and Section 6.1 of the Custodial Agreement. The Trust
hereby acknowledges and agrees to the terms of the Custodial Agreement.

     Section 5.03 Counterparts. This Coordination Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

     Section 5.04 Capitalized Terms. All capitalized terms used herein and not
otherwise defined in this Coordination Agreement will have the meanings set
forth in the Indenture.

[Remainder of Page Left Intentionally Blank.]

E-5

 

SECTION F

MISCELLANEOUS AND EXECUTION PAGES

     This Omnibus Instrument may be executed by each of the parties hereto in
any number of counterparts, and by each of the parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Each signatory, by its execution hereof, does hereby become a party to
each of the agreements or indenture identified for such party as of the date
specified in such agreements or indenture.

     IN WITNESS WHEREOF, the undersigned have executed this Omnibus Instrument
with respect to the Notes as of the date first written above.

	 	 	 	 	 
	 	PRINCIPAL LIFE INSURANCE COMPANY (in

executing below agrees and becomes a party

to (i) the Terms Agreement set forth in

Section D herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Christopher P. Freese
 	 
	 	 	Name:  	Christopher P. Freese 	 
	 	 	Title:  	Officer 	 
	 
	 	PRINCIPAL FINANCIAL GROUP, INC. (in

executing below agrees and becomes a party

to (i) the Terms Agreement set forth in

Section D herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel 	 
	 
	 	PRINCIPAL FINANCIAL SERVICES, INC. (in

executing below agrees and becomes a party

to (i) the License Agreement set forth in

Section B herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel 	 
	 

[Execution Page 1 of 3]

 

 

	 	 	 	 	 
	 	THE PRINCIPAL LIFE INCOME FUNDINGS TRUST

DESIGNATED IN THIS OMNIBUS INSTRUMENT (in

executing below agrees and becomes a party

to (i) the License Agreement set forth in

Section B herein, (ii) the Indenture set

forth in Section C herein, (iii) the Terms

Agreement set forth in Section D herein and

(iv) the Coordination Agreement set forth in

Section E herein)

By: U.S. Bank Trust National Association,

not in its individual capacity but solely in

its capacity as trustee of the Trust

 	 
	 	By:  	/s/ Ward A. Spooner
 	 
	 	 	Name:  	Ward A. Spooner 	 
	 	 	Title:  	Vice President 	 
	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION (in

executing below agrees and becomes a party

to the Trust Agreement set forth in Section

A herein), as Trustee

 	 
	 	By:  	/s/ Ward A. Spooner
 	 
	 	 	Name:  	Ward A. Spooner 	 
	 	 	Title:  	Vice President 	 
	 
	 	GSS HOLDINGS II, INC. (in executing below

agrees and becomes a party to the Trust

Agreement set forth in Section A herein), as

Trust Beneficial Owner

 	 
	 	By:  	/s/ Andrew L. Stidd
 	 
	 	 	Name:  	Andrew L. Stidd 	 
	 	 	Title:  	President 	 
	 
	 	CITIBANK, N.A. (in executing below agrees

and becomes a party to (i) the Indenture set

forth in Section C herein, as Indenture

Trustee, Registrar, Transfer Agent, Paying

Agent and Calculation Agent and (ii) the

Coordination Agreement set forth in Section

E herein), as Indenture Trustee, Registrar,

Transfer Agent, Paying Agent and Calculation

Agent

 	 
	 	By:  	/s/ Nancy Forte
 	 
	 	 	Name:  	Nancy Forte 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[Execution Page 2 of 3]

 

 

	 	 	 	 	 
	 	BANKERS TRUST COMPANY, N.A. (in executing

below agrees and becomes a party to the

Coordination Agreement set forth in Section

E herein)

 	 
	 	By:  	/s/  Patty Ashbaugh
 	 
	 	 	Name:  	Patty Ashbaugh 	 
	 	 	Title:  	Vice President 	 
	 
	 	MERRILL LYNCH, PIERCE, FENNER & SMITH

INCORPORATED (in executing below agrees and

becomes a party to the Terms Agreement set

forth in Section D herein)

 	 
	 	By:  	/s/  Sabina Ceddia
 	 
	 	 	Name:  	Sabina Ceddia 	 
	 	 	Title:  	Duly Authorized Attorney 	 
	 

[Execution Page 3 of 3]

 

 

INDEX OF EXHIBITS AND SCHEDULES TO THE OMNIBUS INSTRUMENT

	 	 	 
	Exhibit A

	 	Standard Trust Terms – Incorporated herein by reference to Exhibit
4.6 to Principal Life Insurance Company’s and Principal Financial
Group, Inc.’s Registration Statement on Form S-3 (Registration
Nos. 333-110499 and 333-110499-01).
	 
	 	 
	Exhibit B

	 	Standard License Agreement Terms – Incorporated herein by
reference to Exhibit 99.1 to Principal Life Insurance Company’s
Current Report on Form 8-K, filed on March 29, 2004.
	 
	 	 
	Exhibit C

	 	Standard Indenture Terms – Incorporated herein by reference to
Exhibit 4.1 to Principal Life Insurance Company’s and Principal
Financial Group, Inc.’s Registration Statement on Form S-3
(Registration Nos. 333-110499 and 333-110499-01).
	 
	 	 
	Exhibit D

	 	Pricing Supplement – Incorporated herein by reference to the
Pricing Supplement with respect to Principal Life Income Fundings
Trust 2004-45, filed on September 13, 2004 , with the Securities
and Exchange Commission pursuant to Rule 424(b)(5) under the
Securities Act of 1933, as amended.
	 
	 	 
	Exhibit E

	 	Principal Life Insurance Company Officer’s Certificate
	 
	 	 
	Exhibit F

	 	Principal Life Income Fundings Trusts Trustee Officer’s Certificate
	 
	 	 
	Schedule I

	 	Terms Agreement Specifications

 

 

EXHIBIT E

Principal Life Insurance Company

Officer’s Certificate

     The undersigned, an officer of Principal Life Insurance Company, an Iowa
stock life insurance company (“Principal Life”), does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of Principal Life, to the knowledge of the
undersigned and after reasonable inquiry, that:

	 	 	 
	1.

	 	each of the representations and warranties of Principal Life
contained in each Expense and Indemnity Agreement entered into in
connection with the Registration Statement (defined below), and each
Funding Agreement issued in connection with the Program (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	Principal Life has performed and complied with, respectively,
in all material respects, all of the agreements, covenants,
obligations and conditions applicable to Principal Life required by
the Specified Agreements to be performed or complied with by
Principal Life on or before the date hereof;
	 
	4.

	 	the Registration Statement filed on Form S-3 (File Nos.
333-110499 and 333-110499-01) (the “Registration Statement”) by
Principal Life and Principal Financial Group, Inc. has been declared
effective by the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended (the
“Act”) and no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that
purpose have been commenced by or are pending before or contemplated
by the Commission;
	 
	5.

	 	all filings, if any, required by Rule 424 and Rule 430A under
the Act have been made in a timely manner;
	 
	6.

	 	since
     , the Trusts organized in connection with the
program contemplated by the Registration Statement have issued the
following series of Notes:
	 
	

	 	[List each series of Notes.] [(collectively, the “Designated Notes”)]; and
	 
	7.

	 	the Funding Agreements issued in connection with the Designated
Notes have been executed and delivered by Principal Life in accordance
with the terms and conditions of the Program Documents.

E-1

 

          Capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Standard Indenture Terms attached as Exhibit 4.1 to the
Registration Statement.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	[Name], [in his/her] capacity as an
authorized officer of Principal Life
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

	 	 	 	 	 

E-2

 

EXHIBIT F

Principal Life Income Fundings Trusts

Trustee Officer’s Certificate

     U.S. Bank Trust National Association, not in its individual capacity but
solely in its capacity as trustee acting on behalf of each common law trust
organized under the laws of the State of New York (in such capacity, the
“Trustee,” and each such common law trust being referred to herein as, a
“Trust”) in connection with the program contemplated by Registration Statement
Nos. 333-110499 and 333-110499-01 filed on Form S-3 (the “Registration
Statement”) by Principal Life Insurance Company and Principal Financial Group,
Inc. with the Securities and Exchange Commission, does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of each Trust, to the knowledge of the
Trustee, that:

	 	 	 
	1.

	 	each of the representations and warranties of each Trust
contained in the Notes issued in connection with the Program, each
Indenture entered into in connection with the Registration Statement
and the Expense and Indemnity Agreement concerning the Trusts (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	each Trust has performed and complied with, respectively, in
all material respects, all of the agreements, covenants, obligations
and conditions applicable to such Trust required by the Specified
Agreements to be performed or complied with by such Trust on or
before the date hereof;
	 
	4.

	 	the Notes issued in connection with the Program, have been
issued, in all material respects, in accordance with the terms and
conditions of the Program Documents; and
	 
	5.

	 	each Funding Agreement has been executed and delivered by the
related Trust in accordance with the terms and conditions of the
Program Documents.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings set forth in the Standard Indenture Terms attached as Exhibit 4.1
to the Registration Statement. In no event shall U.S. Bank Trust National
Association in its personal corporate capacity have any liability for any of
the certifications or statements contained in this Trustee Officer’s
Certificate, such liability being solely that of each Trust.

F-1

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	 	U.S. Bank Trust National Association, not
in its capacity but solely in its capacity
as Trustee acting on behalf of each Trust
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

F-2

 

SCHEDULE I

Terms Agreement Specifications

     In connection with Section 3(a)(iv) of the Distribution Agreement, the
Program under which the Notes are issued is rated Aa2 by Moody’s Investors
Service, Inc. (“Moody’s”) and AA by Standard & Poor’s Rating Services, a
division of The McGraw-Hill Companies, Inc. (“S&P”). Principal Life and PFG
expect that the Notes will be rated Aa2 by Moody’s. The Company’s financial
strength rating is Aa2 by Moody’s and AA by S&P.

     In accordance with Section 2.02(b) of the Terms Agreement and in
connection with the purchase of Notes from the Trust by the Purchasing Agent as
principal, the following items will be delivered on the Settlement Date:

	 	•	 	Opinion of Sidley Austin Brown & Wood LLP regarding the
enforceability of the Guarantee and the Notes.

     All capitalized terms used herein and not otherwise defined herein will
have the meanings set forth in the Distribution Agreement.

I-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]