Document:

exv10w2

Exhibit
10.2

ASSUMPTION AND GENERAL AMENDMENT AGREEMENT

     This Assumption and General Amendment Agreement (this “Agreement”) is made as of
February 25, 2009, by and between Weatherford International Ltd., an exempted company incorporated
with limited liability under the laws of Bermuda (“Weatherford Bermuda”), and Weatherford
International Ltd., a joint stock company registered in Switzerland, canton of Zug
(“Weatherford Switzerland”).

RECITALS

     WHEREAS, the boards of directors of Weatherford Bermuda and Weatherford Switzerland have
previously approved a series of transactions to be effected pursuant to a share exchange agreement
(the “Exchange Agreement”) and by way of a scheme of arrangement in accordance with the
laws of Bermuda and Switzerland, pursuant to which Weatherford Switzerland will become the parent
holding company of Weatherford Bermuda as a result of the remittance of Weatherford Switzerland’s
registered shares (“Registered Shares”) in exchange for Weatherford Bermuda common shares
(“Common Shares”) (such transactions are collectively referred to as the
“Redomestication”);

     WHEREAS, in accordance with Swiss law, the Redomestication will become effective at the time
that the Swiss Register of Commerce registers the capital increase of the Company, as contemplated
in connection with the Redomestication (the “Effective Time”);

     WHEREAS, each of Weatherford Bermuda and Weatherford International, Inc., a Delaware
corporation and wholly-owned indirect subsidiary of Weatherford Bermuda (“Weatherford
Delaware”) (i) maintains and sponsors those certain equity compensation-related plans, and
certain other plans, agreements, awards and arrangements listed on Exhibit A hereto
(collectively, the “Assumed Stock Plans”), providing for the grant or award to its
directors, officers and employees and other persons of (a) options, restricted shares or other
rights to purchase or receive Common Shares or (b) the right to receive benefits or other amounts
by reference to Common Shares (individually, an “Assumed Stock Award” and collectively, the
“Assumed Stock Awards”), and (ii) maintains and sponsors those certain equity
compensation-related plans, and certain other plans, agreements, awards and arrangements listed on
Exhibit B hereto (collectively, the “Other Stock Plans”), providing for the grant
or award to its directors, officers and employees and other persons of (a) options, restricted
shares or other rights to purchase or receive Common Shares or (b) the right to receive benefits or
other amounts by reference to Common Shares (individually, an “Other Stock Award” and
collectively, the “Other Stock Awards”);

     WHEREAS, Weatherford Bermuda has previously entered into those certain employment agreements
listed on Exhibit C hereto (collectively, the “Assumed Employment Agreements”);

     WHEREAS, Weatherford Delaware has previously entered into those certain employment agreements
listed on Exhibit D hereto (collectively, the “Other Employment Agreements”); and

 

 

     WHEREAS, in connection with the Redomestication and pursuant to the Exchange Agreement,
Weatherford Switzerland desires (i) to assume and adopt the Assumed Stock Plans and the Assumed
Stock Awards, and to issue or cause to be issued Registered Shares (from Weatherford Switzerland or
through one of its subsidiaries) in lieu of Common Shares being issued in connection with such
Assumed Stock Plans and Assumed Stock Awards, (ii) to assume the obligations of Weatherford Bermuda
to issue or cause to be issued Registered Shares (from Weatherford Switzerland or through one of
its subsidiaries) in lieu of Common Shares being issued in connection with the Other Stock Plans
and the related Other Stock Awards, but not assume the Other Stock Plans or Other Stock Awards,
(iii) to assume and adopt the Assumed Employment Agreements, and (iv) the Other Employment
Agreements to be amended such that references to Weatherford Bermuda are replaced with references
to Weatherford Switzerland.

     NOW, THEREFORE, in consideration of the foregoing and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, at and as of the Effective Time:

1. Pursuant to the terms of this Agreement and the Exchange Agreement, Weatherford Bermuda hereby
assigns to Weatherford Switzerland, and Weatherford Switzerland hereby accepts from Weatherford
Bermuda and hereby assumes, the Assumed Stock Plans and the related Assumed Stock Awards and the
rights and obligations of Weatherford Bermuda under the Assumed Stock Plans and Assumed Stock
Awards. As a result of such assignment and assumption, Weatherford Switzerland will be the sponsor
of the Assumed Stock Plans and Registered Shares will be issued under the Assumed Stock Plans in
lieu of Common Shares being issued thereunder.

2. Pursuant to the terms of this Agreement and the Exchange Agreement, Weatherford Bermuda hereby
assigns to Weatherford Switzerland, and Weatherford Switzerland hereby accepts from Weatherford
Bermuda and hereby assumes, the obligations to issue or cause to be issued, Registered Shares in
connection with the Other Stock Plans and related Other Stock Awards. As a result of such
assignment and assumption, Weatherford Switzerland will issue or cause to be issued Registered
Shares (from Weatherford Switzerland or through one of its subsidiaries) in lieu of Common Shares
being issued in connection with such Other Stock Plans and Other Stock Awards.

3. Pursuant to the terms of this Agreement and the Exchange Agreement, Weatherford Bermuda hereby
assigns to Weatherford Switzerland, and Weatherford Switzerland hereby accepts and assumes from
Weatherford Bermuda, the Assumed Employment Agreements, including the rights and obligations of
Weatherford Bermuda thereunder. The registered address of Weatherford Switzerland for purposes of
the Assumed Employment Agreements is Alpenstrasse 15, 6300 Zug, Switzerland.

4. To the extent any Assumed Stock Plan, Assumed Stock Award, Other Stock Plan or Other Stock Award
(each, a “Benefit Document”, and collectively, the “Benefit Documents”) provides
for the issuance, acquisition, holding or purchase of, or otherwise relates to or references,
Common Shares, then, pursuant to the terms hereof and thereof, such Benefit

 

 

Document is hereby
amended to provide for the issuance, acquisition, purchase or holding of, or otherwise relate to or
reference, Registered Shares (or benefits or other amounts determined in accordance with the
Benefit Documents).

5. All references in the Assumed Stock Plans and Assumed Stock Awards to Weatherford Bermuda or its
predecessors are hereby amended to be references to Weatherford Switzerland. Only with respect to
the obligations to issue Common Shares, all references in the Other Stock Plans and Other Stock
Awards to Weatherford Bermuda or its predecessors are hereby amended to be references to
Weatherford Switzerland. All references in the Assumed Employment Agreements and the Other
Employment Agreements to Weatherford Bermuda or its predecessors are hereby amended to be
references to Weatherford Switzerland; no other changes or amendments are hereby made to the Other
Employment Agreements.

6. All outstanding Assumed Stock Awards and Other Stock Awards or any other benefits available
which are based on Common Shares and which have been granted under the Assumed Stock Plans or Other
Stock Plans (including, as applicable, any Common Shares exchanged in connection with the
Redomestication) shall remain outstanding pursuant to the terms hereof and thereof.

7. Each Assumed Stock Award and each Other Stock Award shall, pursuant to the terms hereof and
thereof, be exercisable, issuable, held, available or vest upon the same terms and conditions as
under the applicable Benefit Document, except that upon the exercise, issuance, holding,
availability or vesting of such Assumed Stock Awards or Other Stock Awards, as applicable,
Registered Shares are hereby issuable or available, or benefits or other amounts determined, in
lieu of Common Shares.

8. Each Assumed Stock Award and Other Stock Award that is a stock option (i) is hereby assumed by
Weatherford Switzerland, or (ii) the obligations thereunder are hereby assumed by Weatherford
Switzerland, as applicable, in such manner that Weatherford Switzerland would be a corporation
“assuming a stock option in a transaction to which section 424(a) applies” within the meaning of
Section 424 of the Internal Revenue Code of 1986, as amended (the “Code”), were Section 424
of the Code applicable to such Assumed Stock Award or Other Stock Award, with regard to the
requirements of Treasury Regulation Section 1.424-1(a)(5)(iii) for options that are intended to
qualify under Section 422 of the Code, and with regard to the requirements of Treasury Regulation
Section 1.409A-1(b)(5)(v)(D) for other options.

9. The parties hereto acknowledge that the benefit and other plans (and the obligations to issue
Common Shares provided therein) of Weatherford Bermuda, Weatherford Delaware or any of their
affiliates that are not listed on Exhibit A, Exhibit B, or Exhibit C are
not assigned to or assumed or otherwise adopted by Weatherford Switzerland as provided hereby. For
the avoidance of doubt, the Other Employment Agreements are not being assumed by Weatherford
Switzerland.

 

 

10. Subject to the terms of this Agreement, as amended hereby, each Benefit Document is
specifically ratified and reaffirmed by Weatherford Switzerland.

11. This Agreement will be effective immediately prior to the Effective Time subject to effective
completion of the Redomestication by the Effective Time.

(Remainder of page intentionally blank)

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement, which may be executed in
multiple counterparts, but when taken together make one and the same instrument, as of the date
first set forth above.

WEATHERFORD INTERNATIONAL LTD.

a Bermuda exempted company

	 	 	 
	By:
	 	/s/ Burt M. Martin
	 

	 	 
	Name:
	 	Burt M. Martin
	 

	 	 
	Title:
	 	Senior Vice President
	 

	 	 

WEATHERFORD INTERNATIONAL LTD.

a joint stock company registered in Switzerland

	 	 	 
	By:
	 	/s/ Burt M. Martin
	 

	 	 
	Name:
	 	Burt M. Martin
	 

	 	 
	Title:
	 	Director
	 

	 	 

Solely for purposes of the last sentence of Section 5, Weatherford International, Inc. also
executes this Agreement.

WEATHERFORD INTERNATIONAL, INC.

a Delaware corporation

	 	 	 
	By:
	 	/s/ Burt M. Martin
	 

	 	 
	Name:
	 	Burt M. Martin
	 

	 	 
	Title:
	 	Senior Vice President
	 

	 	 

[Signature page to Stock Plan Assumption and General Amendment Agreement]

 

 

EXHIBIT A

Assumed Stock Plans

1. Weatherford International Ltd. Non-Employee Director Stock Option Agreements

2. Weatherford International Ltd. 2006 Omnibus Incentive Plan

3. Weatherford International Ltd. Restricted Share Plan

4. Weatherford International, Inc. 1998 Employee Stock Option Plan

 

 

EXHIBIT B

Other Stock Plans

1. Weatherford International, Inc. Executive Deferred Compensation Stock Ownership Plan

2. Weatherford International, Inc. Foreign Executive Deferred Compensation Stock Plan

3. Weatherford International Ltd. Deferred Compensation Plan for Non-Employee Directors

 

 

EXHIBIT C

Weatherford International Ltd.

Assumed Employment Agreements

1. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Jessica Abarca

2. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Andrew P. Becnel

3. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and M. David Colley

4. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Bernard J. Duroc-Danner

5. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Stuart E. Ferguson

6. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Burt M. Martin

7. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Keith R. Morley

8. Amended and Restated Employment Agreement effective as of December 31, 2008, between
Weatherford International Ltd. and James M. Hudgins

9. Amended and Restated Employment Agreement effective as of December 31, 2008, between
Weatherford International Ltd. and Carel W. Hoyer

 

 

EXHIBIT D

Weatherford International, Inc.

Other Employment Agreements

1. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Jessica Abarca

2. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Andrew P. Becnel

3. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and M. David Colley

4. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Bernard J. Duroc-Danner

5. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Stuart E. Ferguson

6. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Burt M. Martin

7. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Keith R. Morley

8.
Employment Agreement effective as of February 9, 2009, between Weatherford International, Inc.
and James M. Hudgins

9. Employment Agreement effective as of February 9, 2009, between Weatherford International, Inc.
and Carel W. Hoyerexv10w2

Exhibit 10.2

GUARANTY AGREEMENT

     THIS GUARANTY AGREEMENT (this “Guaranty”), dated as of February 26, 2009, is made by
WEATHERFORD INTERNATIONAL LTD., a Swiss joint stock corporation (“WIL-Switzerland”) and,
after the Share Exchange (as such term is defined in the Amendment (as hereinafter defined)), the
sole shareholder of Weatherford International, Ltd., a Bermuda exempted company (“WIL”), in
favor of (i) the banks and other financial institutions that are parties to the Credit Agreement
(as hereinafter defined) and each assignee thereof becoming a “Lender” as provided therein
(collectively, the “Lenders”), (ii) JPMorgan Chase Bank, N.A., in its capacity as
administrative agent (the “Administrative Agent”) under the terms of the Credit Agreement,
and (iii) JPMorgan Chase Bank, N.A., in its capacity as issuer of letters of credit (the
“Issuing Bank”) under the terms of the Credit Agreement;

W I T N E S S E T H:

     WHEREAS, WIL, Weatherford International, Inc., a Delaware corporation (“WII”), as a
guarantor, Weatherford Capital Management Services Limited Liability Company, a Hungarian limited
liability company (“WCMS”), Weatherford Liquidity Management Hungary Limited Liability
Company, a Hungarian limited liability company (“HOC”, and together with WIL and WCMS,
collectively, the “Borrowers”), WIL-Switzerland, certain Lenders and the Administrative
Agent have entered into that certain Omnibus Consent and Amendment to Second Amended and Restated
Credit Agreement dated as of January 9, 2009 (the “Amendment”) in order to amend that
certain Second Amended and Restated Credit Agreement dated as of May 2, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”; terms defined
therein and not otherwise defined herein being used herein as therein defined) among the Borrowers,
WII, as a guarantor, the Administrative Agent and the Lenders party thereto; and

     WHEREAS, it is a condition precedent to the effectiveness of the Amendment that
WIL-Switzerland execute and deliver this Guaranty, and WIL-Switzerland desires to execute and
deliver this Guaranty to satisfy such requirement;

     NOW, THEREFORE, in consideration of the premises and in order to satisfy the requirements of
the Credit Agreement and the Amendment, and for other good and valuable consideration,
WIL-Switzerland hereby agrees as follows:

     SECTION 1. Guaranty.

          (a) In consideration of, and in order to induce the Administrative Agent and the Lenders to
enter into the Amendment and to make Loans to, and the Issuing Bank to issue Letters of Credit for
the account of, the Borrowers (including, without limitation, any additional Persons becoming
Borrowers under the Credit Agreement after the date hereof), WIL-Switzerland hereby absolutely,
unconditionally and irrevocably guarantees in favor of all of the Lenders, the Administrative Agent
and the Issuing Bank, the punctual payment and performance when due, whether at stated maturity, by
acceleration or otherwise, of the Obligations and all covenants of the Borrowers and the other
Guarantors, now or hereafter existing under the Credit Agreement and the other Loan Documents to
which any Borrower or any Guarantor is a party,

 

 

whether for principal, LC Exposure, interest (including interest accruing or becoming owing
both prior to and subsequent to the commencement of any proceeding against or with respect to any
Borrower or any Guarantor under any applicable bankruptcy or insolvency law (including the
Bankruptcy Code), fees, commissions, expenses (including reasonable attorneys’ fees and expenses)),
indemnities, or otherwise (all such obligations being, as applicable, the “Guaranteed
Obligations”). WIL-Switzerland agrees to pay any and all expenses incurred by each Lender, the
Administrative Agent and the Issuing Bank in enforcing this Guaranty against WIL-Switzerland.

          (b) This Guaranty is an absolute, unconditional, present and continuing guaranty of payment
and not of collection and is in no way conditioned upon any attempt to collect from any Borrower or
any Guarantor or any other action, occurrence or circumstance whatsoever.

          (c) The obligations of WIL-Switzerland under this Guaranty shall be limited to an aggregate
amount equal to the largest amount that would not render this Guaranty subject to avoidance under
Section 548 of the Bankruptcy Code or any comparable provisions of applicable law.

     SECTION 2. Continuing Guaranty.

          (a) WIL-Switzerland guarantees that the Guaranteed Obligations shall be paid strictly in
accordance with the terms of the Credit Agreement and the other Loan Documents; provided that if
payment in respect of any Guaranteed Obligations shall be due in a currency other than Dollars and
if, by reason of any legal prohibition, disruption of currency or foreign exchange markets, war or
civil disturbance or other event, payment of such Guaranteed Obligations in such currency shall be
impossible or, in the reasonable judgment of the Administrative Agent, the Issuing Bank or any
Lender, not consistent with the protection of its rights or interests, then, at the election of the
Administrative Agent, the Issuing Bank or such Lender, WIL-Switzerland shall make payment of the
Dollar Equivalent of such Guaranteed Obligations and shall indemnify the Administrative Agent, the
Issuing Bank or such Lender against any losses or expenses (including losses or expenses resulting
from fluctuations in exchange rates) that it shall sustain as a result of such alternative payment.
WIL-Switzerland agrees that, to the maximum extent permitted by applicable law, the Guaranteed
Obligations and Loan Documents to which any Borrower is a party may be extended or renewed, and
indebtedness thereunder repaid and reborrowed in whole or in part, without notice to or assent by
WIL-Switzerland, and that WIL-Switzerland shall remain bound upon this Guaranty notwithstanding any
extension, renewal or other alteration of any of the Guaranteed Obligations or such Loan Documents
or any repayment and reborrowing of Loans to the Borrowers. The obligations of WIL-Switzerland
under this Guaranty are absolute and unconditional irrespective of the value, genuineness,
validity, regularity or enforceability of the obligations of the Borrowers under the Credit
Agreement or any other Loan Document or any substitution, release or exchange of any other
guarantee of or security for the Obligations. To the maximum extent permitted by applicable law,
except as otherwise expressly provided in the Credit Agreement or any other Loan Document to which
WIL-Switzerland is a party, the obligations of WIL-Switzerland under this Guaranty shall be
absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the
terms hereof under any circumstances whatsoever, including:

 

 

     (i) any modification, amendment, supplement, renewal, extension for any period,
increase, decrease, alteration or rearrangement of all or any part of the Guaranteed
Obligations, or of the Credit Agreement or any other Loan Document executed in connection
therewith, or any contract or understanding among the Borrowers, any Guarantor, the
Administrative Agent, the Issuing Bank or the Lenders, or any other Person, pertaining to
the Guaranteed Obligations;

     (ii) any adjustment, indulgence, forbearance or compromise that might be granted or
given by the Administrative Agent, the Issuing Bank or the Lenders to WIL-Switzerland, any
other Guarantor, any Borrower or any other Person liable on the Guaranteed Obligations;

     (iii) the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation,
disability, dissolution or lack of power of WIL-Switzerland, any other Guarantor, any
Borrower or any other Person at any time liable for the payment of all or part of the
Guaranteed Obligations; or any dissolution or winding up of WIL-Switzerland, any other
Guarantor or any Borrower, or any sale, lease or transfer of any or all of the assets of
WIL-Switzerland, any other Guarantor or any Borrower, or any changes in the shareholders of
WIL-Switzerland, any other Guarantor or any Borrower, or any reorganization of
WIL-Switzerland, any other Guarantor or any Borrower;

     (iv) the invalidity, illegality or unenforceability of all or any part of the
Guaranteed Obligations, or any document or agreement executed in connection with the
Guaranteed Obligations, for any reason whatsoever, including the fact that (A) the
Guaranteed Obligations, or any part thereof, exceed the amount permitted by law, (B) the act
of creating the Guaranteed Obligations, or any part thereof is ultra vires, (C) the officers
or representatives executing the documents or otherwise creating the Guaranteed Obligations
acted in excess of their authority, (D) the Guaranteed Obligations or any part thereof
violate applicable usury laws, (E) WIL-Switzerland, any other Guarantor or any Borrower has
valid defenses, claims, and offsets (whether at law or in equity, by agreement or by
statute) which render the Guaranteed Obligations wholly or partially uncollectible from
WIL-Switzerland, any other Guarantor or any Borrower, (F) the creation, performance, or
repayment of the Guaranteed Obligations (or execution, delivery and performance of any
document or instrument representing any part of the Guaranteed Obligations or executed in
connection with any of the Guaranteed Obligations, or given to secure the repayment of the
Guaranteed Obligations) is illegal, uncollectible, legally impossible or unenforceable, or
(G) the Credit Agreement, any other Loan Document, or any other document or instrument
pertaining to any of the Guaranteed Obligations has been forged or otherwise is irregular or
not genuine or authentic;

     (v) any full or partial release of the liability of WIL-Switzerland, any other
Guarantor or any Borrower on the Guaranteed Obligations or any part thereof, or any other
Person now or hereafter liable, whether directly or indirectly, jointly, severally, or
jointly and severally, to pay, perform, guarantee, or assure the payment of the Guaranteed
Obligations or any part thereof; it being recognized, acknowledged, and agreed by
WIL-Switzerland that WIL-Switzerland may be required to pay the Guaranteed Obligations in

 

 

full without assistance or support of any other Person, and that WIL-Switzerland has
not been induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that any other Person shall be liable to perform the Guaranteed
Obligations or that the Administrative Agent, the Issuing Bank or any Lender shall look to
any other Person to perform the Guaranteed Obligations;

     (vi) the taking or accepting of any other security, collateral or guaranty, or other
assurance of payment, for all or any part of the Guaranteed Obligations;

     (vii) any release, surrender, exchange, subordination, deterioration, waste, loss or
impairment of any collateral, property or security, at any time existing in connection with,
or assuring or securing payment of, all or any part of the Guaranteed Obligations;

     (viii) the failure of the Administrative Agent, the Lenders, the Issuing Bank or any
other Person to exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of such collateral,
property or security;

     (ix) the fact that any collateral, security or Lien contemplated or intended to be
given, created or granted as security for the repayment of the Guaranteed Obligations shall
not be properly perfected or created, or shall prove to be unenforceable or subordinate to
any other Lien; it being recognized and agreed by WIL-Switzerland that WIL-Switzerland is
not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the
validity, enforceability, collectibility or value of any of the collateral for the
Guaranteed Obligations;

     (x) any payment by any Borrower, WIL-Switzerland or any other Guarantor to the
Administrative Agent, the Issuing Bank or any Lender is held to constitute a preference
under bankruptcy or insolvency laws, or for any other reason either the Administrative
Agent, the Issuing Bank or any Lender is required to refund such payment or pay such amount
to any Borrower, WIL-Switzerland, any other Guarantor or any other Person; or

     (xi) any other action taken or omitted to be taken with respect to the Credit
Agreement, this Guaranty, any other Loan Document, the Guaranteed Obligations, or the
security and collateral therefor, whether or not such action or omission prejudices
WIL-Switzerland or increases the likelihood that WIL-Switzerland shall be required to pay
the Guaranteed Obligations pursuant to the terms hereof;

it being the unambiguous and unequivocal intention of WIL-Switzerland that WIL-Switzerland shall be
obligated to pay the Guaranteed Obligations when due, notwithstanding any occurrence, circumstance,
event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, except for the full and final payment and satisfaction
of the Guaranteed Obligations after the termination of all of the Commitments.

          (b) WIL-Switzerland further agrees that, to the fullest extent permitted by law, as between
WIL-Switzerland, on the one hand, and the Administrative Agent, the Issuing Bank

 

 

and the Lenders, on the other hand, (i) the maturity of the Obligations may be accelerated as
provided in Section 9.01 of the Credit Agreement for the purposes of this Guaranty, notwithstanding
any stay, injunction or other prohibition preventing the acceleration of the Obligations as against
any Borrower and (ii) in the event of any purported acceleration (whether by declaration or
automatic) of the Obligations as provided in Section 9.01 of the Credit Agreement, the Obligations
(whether or not due and payable) shall forthwith become due and payable by WIL-Switzerland for the
purpose of this Guaranty.

     SECTION 3. Effect of Debtor Relief Laws. If after receipt of any payment of, or
proceeds of any security applied (or intended to be applied) to the payment of all or any part of
the Guaranteed Obligations, the Administrative Agent, the Issuing Bank or any Lender is for any
reason compelled to surrender or voluntarily surrenders, such payment or proceeds to any Person (a)
because such payment or application of proceeds is or may be avoided, invalidated, declared
fraudulent, set aside, determined to be void or voidable as a preference, fraudulent conveyance,
fraudulent transfer, impermissible set-off or a diversion of trust funds or (b) for any other
reason, including (i) any judgment, decree or order of any court or administrative body having
jurisdiction over the Administrative Agent, the Issuing Bank, any Lender or any of their respective
properties or (ii) any settlement or compromise of any such claim effected by the Administrative
Agent, the Issuing Bank or any Lender with any such claimant (including any Borrower or any other
Guarantor), then the Guaranteed Obligations or any part thereof intended to be satisfied shall be
reinstated and continue, and this Guaranty shall continue in full force as if such payment or
proceeds had not been received, notwithstanding any revocation thereof or the cancellation of any
instrument evidencing any of the Guaranteed Obligations or otherwise; and WIL-Switzerland shall be
liable to pay the Administrative Agent, the Issuing Bank and the Lenders, and hereby does indemnify
the Administrative Agent, the Issuing Bank and the Lenders and hold them harmless for the amount of
such payment or proceeds so surrendered and all reasonable expenses (including reasonable
attorneys’ fees, court costs and expenses attributable thereto) incurred by the Administrative
Agent, the Issuing Bank or any such Lender in the defense of any claim made against it that any
payment or proceeds received by the Administrative Agent, the Issuing Bank or any such Lender in
respect of all or part of the Guaranteed Obligations must be surrendered. The provisions of this
paragraph shall survive the termination of this Guaranty and any satisfaction and discharge of the
Borrowers by virtue of any payment, court order, or any law.

     SECTION 4. Waiver. WIL-Switzerland hereby waives promptness, diligence, notice of
acceptance and any other notice with respect to any of the Guaranteed Obligations and this Guaranty
and waives presentment, demand for payment, notice of intent to accelerate, notice of dishonor or
nonpayment and any requirement that the Administrative Agent, the Issuing Bank or any Lender
institute suit, collection proceedings or take any other action to collect any of the Guaranteed
Obligations, including any requirement that the Administrative Agent, the Issuing Bank or any
Lender protect, secure, perfect or insure any Lien against any property subject thereto or exhaust
any right or take any action against any Borrower, any Guarantor or any other Person or any
collateral (it being the intention of the Administrative Agent, the Issuing Bank, the Lenders, and
WIL-Switzerland that this Guaranty is to be a guaranty of payment and not of collection). It shall
not be necessary for the Administrative Agent, the Issuing Bank or any Lender, in order to enforce
any payment by WIL-Switzerland hereunder, to institute suit or exhaust its rights and remedies
against WIL-Switzerland, any other Guarantor, any Borrower or

 

 

any other Person, including others liable to pay the Guaranteed Obligations, or to enforce its
rights against any security ever given to secure payment thereof. WIL-Switzerland hereby expressly
waives to the maximum extent permitted by applicable law each and every right to which it may be
entitled by virtue of the suretyship laws of the State of Texas or any other state in which it may
be located, including any and all rights it may have pursuant to Rule 31, Texas Rules of Civil
Procedure, Section 17.001 of the Texas Civil Practice and Remedies Code and Chapter 34 of the Texas
Business and Commerce Code. WIL-Switzerland hereby waives marshaling of assets and liabilities,
notice by the Administrative Agent, the Issuing Bank or any Lender of any indebtedness or liability
to which such Person applies or may apply any amounts received by it, and of the creation,
advancement, increase, existence, extension, renewal, rearrangement or modification of the
Guaranteed Obligations. WIL-Switzerland expressly waives, to the extent permitted by applicable
law, the benefit of any and all laws providing for exemption of property from execution or for
valuation and appraisal upon foreclosure.

     SECTION 5. Agreement to Defer Exercise of Subrogation. Notwithstanding any payment or
payments made by WIL-Switzerland hereunder, or any setoff or application by the Administrative
Agent, the Issuing Bank or any Lender of any security or of any credits or claims, WIL-Switzerland
will not assert or exercise any rights of the Administrative Agent, the Issuing Bank or any Lender
or of itself against any other Guarantor or any Borrower to recover the amount of any payment made
hereunder by WIL-Switzerland to the Administrative Agent, the Issuing Bank or any Lender by way of
any claim, remedy or subrogation, reimbursement, exoneration, contribution, indemnity,
participation or otherwise arising by contract, by statute, under common law or otherwise, and
WIL-Switzerland shall not have any right to exercise any right of recourse to or any claim against
assets or property of any Borrower or of any other Guarantor for such amounts, in each case unless
and until the Obligations of such Borrower or obligations of such Guarantor guaranteed hereby have
been fully and finally satisfied. Until such time (but not thereafter), WIL-Switzerland hereby
agrees not to exercise any claim, right or remedy which it may now have or hereafter acquire
against any other Guarantor or any Borrower that arises under the Credit Agreement or any other
Loan Document or from the performance by WIL-Switzerland of the Guaranty hereunder including any
claim, remedy or right of subrogation, reimbursement, exoneration, contribution, indemnification or
participation in any claim, right or remedy of the Administrative Agent, the Issuing Bank or any
Lender against any Borrower or any Guarantor, or any security that the Administrative Agent, the
Issuing Bank or any Lender now has or hereafter acquires pursuant hereto securing the Obligations
of the Borrowers or obligations of any Guarantor under the Credit Agreement or any other Loan
Document, whether or not such claim, right or remedy arises in equity, under contract, by statute,
under common law or otherwise. If any amount shall be paid to WIL-Switzerland by any Borrower or
any Guarantor after payment in full of the Obligations, and the Obligations shall thereafter be
reinstated in whole or in part and the Administrative Agent, the Issuing Bank or any Lender forced
to repay any sums received by any of them in payment of the Obligations, this Guaranty shall be
automatically reinstated and such amount shall be held in trust for the benefit of the
Administrative Agent, the Issuing Bank and the Lenders and shall forthwith be paid to the
Administrative Agent to be credited and applied to the Guaranteed Obligations, whether matured or
unmatured. The provisions of this paragraph shall survive the termination of this Guaranty, and
any satisfaction and discharge of any Borrower or any Guarantor by virtue of any payment, court
order or any federal or state law.

 

 

     SECTION 6. Full Force and Effect. This Guaranty is a continuing guaranty and shall
remain in full force and effect until all of the Guaranteed Obligations under the Credit Agreement
and the other Loan Documents to which any Borrower or any Guarantor is a party and all other
amounts payable under this Guaranty have been paid in full (after the termination of the
Commitments). All rights, remedies and powers provided in this Guaranty may be exercised, and all
waivers contained in this Guaranty may be enforced, only to the extent that the exercise or
enforcement thereof does not violate any provisions of applicable law which may not be waived.

     SECTION 7. Severability. Any provision of this Guaranty held to be invalid, illegal
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof, and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     SECTION 8. Amendments, Etc. No amendment or waiver of any provision of this Guaranty
nor consent to any departure by WIL-Switzerland therefrom shall in any event be effective unless
the same shall be in writing executed by the Administrative Agent.

     SECTION 9. Notices. All notices and other communications provided for hereunder shall
be given in the manner specified in the Credit Agreement (i) in the case of the Administrative
Agent, at the address specified for the Administrative Agent in the Credit Agreement, and (ii) in
the case of WIL-Switzerland, at the address specified therefor in this Guaranty.

     SECTION 10. No Waiver; Remedies. No failure or delay by the Administrative Agent, the
Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Administrative
Agent, the Issuing Bank and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision of this Guaranty or
consent to any departure by WIL-Switzerland therefrom shall in any event be effective unless the
same shall be permitted by Section 8 hereof, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.

     SECTION 11. Right of Set Off. Upon the occurrence and during the continuance of any
Event of Default, the Administrative Agent, the Issuing Bank and each Lender is hereby authorized
at any time and from time to time, without notice to WIL-Switzerland (any such notice being
expressly waived by WIL-Switzerland), to set off and apply any and all deposits (general or
special, time or demand, provisional or final but excluding the funds held in accounts clearly
designated as escrow or trust accounts held by WIL-Switzerland for the benefit of Persons which are
not Affiliates of WIL-Switzerland), whether or not such setoff results in any loss of interest or
other penalty, and including all certificates of deposit, at any time held and other obligations at
any time owing by the Administrative Agent, the Issuing Bank or such Lender to or for the credit or
the account of WIL-Switzerland against any and all of the

 

 

Guaranteed Obligations irrespective of whether or not the Administrative Agent, the Issuing
Bank or such Lender shall have made any demand under the Credit Agreement, this Guaranty, the Notes
or any other Loan Document. The rights of the Administrative Agent, the Issuing Bank and the
Lenders under this Section are in addition to other rights and remedies (including other rights of
setoff) which the Administrative Agent, the Issuing Bank or the Lenders may have. This Section is
subject to the terms and provisions of Section 4.01(a) of the Credit Agreement.

     SECTION 12. Transfer Of Obligations. This Guaranty shall (i) be binding upon
WIL-Switzerland, its successors and assigns and (ii) inure to the benefit of and be enforceable by
the Administrative Agent, for the benefit of itself, the Lenders and the Issuing Bank.

     SECTION 13. Governing Law. This Guaranty and the rights and obligations of the
parties hereto shall be construed in accordance with and governed by the law of the State of New
York.

     SECTION 14. Submission to Jurisdiction; Consent To Service Of Process; Waiver of Jury
Trial.

          (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR OTHERWISE RELATED HERETO
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN OR THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY
OF THIS GUARANTY, WIL-SWITZERLAND HEREBY CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO
THE JURISDICTION OF THE AFORESAID COURTS SOLELY FOR THE PURPOSE OF ADJUDICATING ITS RIGHTS OR THE
RIGHTS OF THE ADMINISTRATIVE AGENT, THE LENDERS AND THE ISSUING BANK WITH RESPECT TO THIS GUARANTY
OR ANY DOCUMENT RELATED HERETO. WIL-SWITZERLAND HEREBY IRREVOCABLY DESIGNATES CT CORPORATION
SYSTEM, 111 8TH AVENUE, NEW YORK, NEW YORK 10011, AS THE DESIGNEE, APPOINTEE AND AGENT OF
WIL-SWITZERLAND TO RECEIVE, FOR AND ON BEHALF OF WIL-SWITZERLAND, SERVICE OF PROCESS IN SUCH
JURISDICTION IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY DOCUMENT
RELATED HERETO AND SUCH SERVICE SHALL BE DEEMED COMPLETED THIRTY DAYS AFTER MAILING THEREOF TO SAID
AGENT. IT IS UNDERSTOOD THAT A COPY OF SUCH PROCESS SERVED ON SUCH AGENT WILL BE PROMPTLY
FORWARDED BY MAIL TO WIL-SWITZERLAND AT ITS ADDRESS SET FORTH HEREIN, BUT THE FAILURE OF
WIL-SWITZERLAND TO RECEIVE SUCH COPY SHALL NOT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, AFFECT
IN ANY WAY THE SERVICE OF SUCH PROCESS. IF FOR ANY REASON SERVICE OF PROCESS CANNOT PROMPTLY BE
MADE ON EITHER SUCH LOCAL AGENT, WIL-SWITZERLAND FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO WIL-SWITZERLAND AT ITS SAID
ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH

 

 

MAILING. WIL-SWITZERLAND HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM
NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS IN RESPECT OF THIS GUARANTY OR ANY DOCUMENT RELATED
HERETO. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
WIL-SWITZERLAND IN ANY OTHER JURISDICTION.

          (b) TO THE EXTENT PERMITTED BY APPLICABLE LAW, WIL-SWITZERLAND HEREBY IRREVOCABLY WAIVES ALL
RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION
WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR ANY MATTER ARISING IN CONNECTION HEREWITH OR
THEREWITH.

     SECTION 15. Payments by Guarantor.

          (a) Any and all payments by or on account of any obligation of WIL-Switzerland hereunder shall
be understood to be minimum payment obligations. When entering into this Agreement, WIL-Switzerland
has assumed that any and all payments by or on account of any obligation of WIL-Switzerland
hereunder will not be subject to any deduction for Indemnified Taxes or Other Taxes (collectively,
the “Covered Taxes”). WIL-Switzerland agrees that if it shall be required to deduct any
Covered Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent, the Issuing Bank or the Lender (as the case may be)
receives an amount equal to the sum it would have received had no such deductions been made, (ii)
WIL-Switzerland shall make such deductions and (iii) WIL-Switzerland shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law. If requested by
the Administrative Agent, WIL-Switzerland shall provide to the Administrative Agent those documents
which are required by law and applicable double taxation treaties to be provided by the payer of
such tax, for each relevant Lender to prepare a claim for refund of Swiss withholding tax.
WIL-Switzerland shall indemnify the Administrative Agent, the Issuing Bank and each Lender, within
20 days after written demand therefor, for the full amount of any Covered Taxes directly assessed
against and paid by the Administrative Agent, the Issuing Bank or such Lender, as the case may be,
on or with respect to any payment by or on account of the Guaranteed Obligations (including Covered
Taxes imposed or asserted on or attributable to amounts payable under this Section) and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or
not such Covered Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered to
WIL-Switzerland by a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf
or on behalf of a Lender or the Issuing Bank, shall be presumed correct absent manifest error.

          (b) WIL-Switzerland will remit to the appropriate Governmental Authority, prior to delinquency
(assuming WIL-Switzerland has received notification of a claim for

 

 

Covered Taxes within 10 Business Days prior to the date the delinquency commences), all
Covered Taxes payable in respect of any payment by or on account of any obligations of
WIL-Switzerland hereunder. Within 30 days after the date of any payment of Covered Taxes,
WIL-Switzerland will furnish to the Administrative Agent the original or a certified copy of a
receipt evidencing payment of such Covered Taxes or such other evidence thereof as may be
reasonably satisfactory to the Administrative Agent. At the reasonable request of WIL-Switzerland,
the Administrative Agent will request the Lenders to provide any reasonable tax forms,
certifications or other documents that would result in a reduction in the amount of Covered Taxes
hereunder; provided, however, the obligation of WIL-Switzerland to make payments for Covered Taxes
hereunder shall not be conditioned upon any Lender providing any such tax forms, certifications or
other documents.

     SECTION 16. Judgment Currency. The obligation of WIL-Switzerland to make payments on
any Guaranteed Obligation to the Lenders, to the Issuing Bank or to the Administrative Agent
hereunder in any currency (the “first currency”) shall not be discharged or satisfied by
any tender or recovery pursuant to any judgment expressed in or converted into any other currency
(the “second currency”) except to the extent to which such tender or recovery shall result
in the effective receipt by the applicable Lender, Issuing Bank or the Administrative Agent of the
full amount of the first currency payable, and accordingly the primary obligation of
WIL-Switzerland shall be enforceable as an alternative or additional cause of action for the
purpose of recovery in the second currency of the amount (if any) by which such effective receipt
shall fall short of the full amount of the full currency payable and shall not be affected by a
judgment being obtained for any other sum due hereunder.

     SECTION 17. Automatic Acceleration in Certain Events. Upon the occurrence of an Event
of Default specified in Section 9.01(f) or (g) of the Credit Agreement, all Guaranteed Obligations
shall automatically become immediately due and payable by WIL-Switzerland, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by WIL-Switzerland, and
regardless of whether payment of the Guaranteed Obligations by the Borrowers has then been
accelerated.

     SECTION 18. Information. WIL-Switzerland assumes all responsibility for being and
keeping itself informed of the Borrowers’ financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature,
scope and extent of the risks that WIL-Switzerland assumes and incurs hereunder, and agrees that
the Administrative Agent, the Issuing Bank and the Lenders will not have any duty to advise
WIL-Switzerland of information known to any of them regarding such circumstances or risks.

     SECTION 19. Survival of Agreement. All covenants, agreements, representations and
warranties made by WIL-Switzerland herein shall be considered to have been relied upon by the
Administrative Agent, the Issuing Bank and the Lenders and shall survive the execution and delivery
of this Guaranty and the other Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any party or on its behalf and
notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice
or knowledge of any Default or incorrect representation or warranty at the time any credit is
extended under the Credit Agreement, and shall continue in full force and effect as long as any amount payable under this Guaranty is
outstanding and unpaid.

 

 

     SECTION 20. Counterparts. This Guaranty may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract.

(Remainder of this page intentionally left blank.)

 

 

     IN WITNESS WHEREOF, WIL-Switzerland and the Administrative Agent have caused this Guaranty to
be duly executed and delivered by their respective duly authorized officers as of the date first
above written.

Address for Notices:

Weatherford International Ltd.

c/o Weatherford International, Inc.

515 Post Oak Blvd.

Houston, Texas 77027

Attention: General Counsel

	 	 	 	 	 
	WEATHERFORD INTERNATIONAL LTD.,

a Swiss joint stock corporation

 
	By:  	/s/
Andrew P. Becnel
	 	Name:  	Andrew P. Becnel
	 	Title:  	Senior Vice President

and Chief Financial Officer
	 
	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 
	By:  	/s/
Helen A. Carr
	 	Name:  	Helen A. Carr
	 	Title:  	Managing Director
	 

Signature Page to Guaranty Agreement

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