Document:

exv10w2

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of January 1, 2009 (the
“Effective Date”), by and between Weatherford International, Inc., a Delaware corporation (the
“Company”), and Jessica Abarca (the “Executive”).

W I T N
E S S E T H:

     WHEREAS, the Company has determined that it is in the interest of the Company and the
shareholders of Weatherford International Ltd. for the Company to commit to provide certain
severance benefits to the Executive in the event of his termination of employment under certain
conditions;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree:

1. Certain Definitions.

     (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (b) “Annual Base Salary” shall have the meaning specified in the Employment Agreement.

     (c) “Annual Bonus” shall mean the Executive’s annual bonus under the annual incentive plan of
the Company and any of its Affiliates.

     (d) “Annual Bonus Amount” shall mean the sum of (a) the amount of the Annual Bonus, if any,
paid or provided in any form (whether in cash, securities or any combination thereof) by the
Company or any of its Affiliates to or for the benefit of the Executive for services rendered or
labor performed during a fiscal year of the Company and (b) the amount of the discretionary bonus
or other bonus paid outside of the Company’s annual incentive plan, if any, paid or provided in any
form (whether in cash, securities or any combination thereof) by the Company or any of its
Affiliates to or for the benefit of the Employee (it being understood that if multiple bonuses are
paid for any given year, or if a bonus is made in multiple installments for a year, all such
bonuses or installments shall be aggregated as a single payment for that year in determining the
Annual Bonus Amount). The Executive’s Annual Bonus Amount shall be determined by including any
portion thereof that the Executive could have received in cash or securities in lieu of (i) any
elective deferrals made by the Executive pursuant to all nonqualified deferred compensation plans
or (ii) elective contributions made on the Executive’s behalf by the Company pursuant to a
qualified cash or deferred arrangement (as defined in section 401(k) of the Code) or pursuant to a
plan maintained under section 125 of the Code.

     (e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

     (f) “Board” shall mean the Board of Directors of the Parent.

     (g) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’s duties with the Parent or the Company (other than any such failure resulting from
incapacity due to physical or mental illness or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 4(d) of the Employment
Agreement), after a written

 

 

demand for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially performed the
Executive’s duties, or

          (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Parent or the Company.

     No act, or failure to act, on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the Parent or the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more senior officer of the
Company or based upon the advice of counsel for the Parent (which may be the General Counsel or
other counsel employed by the Parent or its subsidiaries) shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best interests of the Parent
or the Company. The cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive, and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

     (h) “Change of Control” shall be deemed to have occurred if any event set forth in any one of
the following paragraphs shall have occurred:

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Parent (the “Outstanding
Parent Common Shares”) or (B) the combined voting power of the then outstanding voting securities
of the Parent entitled to vote generally in the election of directors (the “Outstanding Parent
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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Parent’s shareholders, was approved by a vote of at least two-thirds (2/3) 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 any 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, scheme of
arrangement, exchange offer or similar transaction of the Parent or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the Parent’s Assets (any of
which 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 (which, for
purposes of this Agreement, shall include, without limitation, any corporation, partnership,
association, joint-stock company, limited liability company, trust, unincorporated organization or
other business entity) who were the beneficial owners, respectively, of the Outstanding Parent
Common Shares and Outstanding Parent Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than sixty-six and two-thirds percent
(66-2/3%) of, respectively, the then outstanding

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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 Parent or all or substantially all of the Parent’s
Assets either directly or through one (1) or more subsidiaries or entities) in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Parent Common Shares and the Outstanding Parent 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 Parent or such entity resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock 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 (2/3) 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

          (iv) Approval or adoption by the Board of Directors or the shareholders of the Parent 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 Parent’s Assets or the dissolution of the Parent.

     (i) “Disability” shall mean the absence of the Executive from performance of the Executive’s
duties with the Parent on a substantial basis for one hundred twenty (120) calendar days as a
result of incapacity due to mental or physical illness.

     (j) “Employment Agreement” shall mean the Executive’s employment agreement with the Parent, as
it may be amended from time to time.

     (k) “Employment Period” shall have the meaning specified in the Employment Agreement.

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

     (m) “ERP” shall mean the Weatherford International Ltd. Nonqualified Executive Retirement
Plan, as it may be amended from time to time.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (o) “Good Reason” shall mean the occurrence of any of the following:

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
that are not materially consistent with the Executive’s position (including status, offices and
titles), authority, duties or responsibilities as contemplated by Section 3(a) of the Employment
Agreement, or any other action by the Parent or the Company which results in a diminution in such
position, authority, duties or responsibilities, excluding for this purpose any not taken in bad
faith and which is remedied by the Parent or the Company after receipt of notice thereof given by
the Executive;

          (ii) any failure by the Parent or the Company to comply with any of the provisions of this
Agreement or the Employment Agreement (including, without limitation, its obligations under Section
3(a) of the Employment Agreement), other than any failure not occurring in bad faith and which is
remedied by the Parent or the Company after receipt of notice thereof given by the Executive;

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          (iii) any failure by the Parent or the Company to continue to provide the Executive with
benefits currently enjoyed by the Executive under any of the Parent’s and the Company’s
compensation, bonus, retirement, pension, savings, life insurance, medical, health and accident, or
disability plans, or the taking of any other action by the Parent or the Company which would
directly or indirectly reduce any of such benefits or deprive the Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

          (iv) the Parent’s or the Company’s requiring the Executive to be based at any office or
location other than as provided in Section 3(a)(i) of the Employment Agreement or the Parent’s or
the Company’s requiring the Executive to travel on business to a substantially greater extent than
required immediately prior to the date hereof;

          (v) any purported termination by the Parent or the Company of the Executive’s employment
(including, without limitation, any secondment of the Executive without the Executive’s prior
express agreement in writing);

          (vi) any failure by the Parent to comply with and satisfy Section 10(b) of the Employment
Agreement;

          (vii) failure by the Parent (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive prior to the
termination or expiration of this Agreement, with such employment agreement and executive
retirement plan having the same terms and conditions as existed in agreements and plans between the
Parent or the Company and the Executive prior to December 30, 2008, and incorporating such terms
and conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

          (viii) in connection with, as a result of or following a Change of Control, the giving of
notice to the Executive that the Employment Period shall not be extended.

     In the event of a Change of Control or other Corporate Transaction in which the Parent’s
common shares may cease to be publicly traded, following the Change of Control or the consummation
of such other Corporate Transaction, “Good Reason” shall be deemed to exist upon the occurrence of
any of the events listed in clauses (i) through (vii) above and also in the event Executive is
assigned to any position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities that are (A) not at or with the publicly-traded ultimate parent company
of the successor to the Parent or the corporation or other entity surviving or resulting from such
Corporate Transaction or (B) inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 3(a) of the Employment Agreement.

     For purposes of this Agreement, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

     (p) “IRS” shall mean the Internal Revenue Service.

     (q) “Parent” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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     (r) “Parent’s Assets” shall mean the assets (of any kind) owned by the Parent, including,
without limitation, the securities of the Parent’s Subsidiaries and any of the assets owned by the
Parent’s Subsidiaries.

     (s) “Person” shall have the meaning given 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
Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Parent or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering by the Parent of such securities, or (iv) a corporation
or other entity owned, directly or indirectly, by the shareholders of the Parent in the same
proportions as their ownership of common shares of the Parent.

     (t) “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended
and the final Department of Treasury regulations issued thereunder.

     (u) “Separation From Service” shall have the meaning ascribed to such term in Section 409A.

     (v) “Specified Employee” shall have the meaning ascribed to such term in Section 409A.

     (w) “SRP” shall mean the Weatherford International, Inc. Supplemental Retirement Plan, as it
may be amended from time to time.

     (x) “Subsidiary” shall mean any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for the purposes of this Agreement.

     (y) “Term of the Agreement” shall mean the period commencing on January 1, 2009 and ending on
December 31, 2009.

2. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Parent determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with the Employment Agreement of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Parent shall terminate
effective thirty (30) days after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that within the thirty (30)-day period after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties. In addition, if a physician
selected by the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in accordance with
the Employment Agreement of the Executive’s intention to terminate his employment. In such event,
the Disability Effective Date shall be thirty (30) days after receipt of such notice by the
Company.

     (b) Cause. The Parent may terminate the Executive’s employment during the Employment Period
for Cause.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive at any time
during the Employment Period for Good Reason.

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     (d) Notice of Termination. Any termination during the Employment Period shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement or the Employment Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date, in the case of a notice
by the Company, shall be not more than 30 days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” shall mean:

          (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be;

          (ii) if the Executive’s employment is terminated by the Company or the Parent other than for
Cause, the Date of Termination shall be the date on which the Executive receives notice of such
termination; and

          (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability Effective Date, as the
case may be.

3. Obligations of the Company Upon Termination.

     (a) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period
and prior to the expiration of the Term of the Agreement, the Executive’s employment is terminated
by reason of the Executive’s death or Disability, by the Parent or the Company for any reason other
than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable), at the times specified in clause (x), the following amounts:

               (A) an amount equal to the Executive’s Annual Base Salary through the Date of Termination for
periods following his Separation From Service to the extent not theretofore paid;

               (B) an amount equal to the product of (x) the higher of (I) the highest Annual Bonus Amount
for the preceding five (5) calendar years and (II) the Annual Bonus Amount that would be payable in
respect of the current fiscal year (and annualized for any fiscal year consisting of less than
twelve (12) months) (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is three hundred sixty-five (365);

               (C) an amount equal to two times the sum of (i) the highest Annual Base Salary received by the
Executive in the last five (5) years ended prior to the Termination Date and (ii) the Highest
Annual Bonus;

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               (D) an amount equal to two times the sum of (i) the total of the employer basic and matching
contributions credited to the Executive under the Company’s 401(k) Savings Plan (the “401(k) Plan”)
during the twelve (12)-month period immediately preceding the month of the Executive’s Date of
Termination, and (ii) the amount that would have been credited and contributed to the Executive and
his accounts under all other deferred compensation plans (excluding the ERP and the SRP) using the
amounts specified in clauses (i) and (ii) of Section 3(a)(i)(C), such total amount to be grossed up
so that the amount the Executive actually receives after payment of any federal or state taxes
payable thereon equals the amount first described above; and

               (E) the total value of all fringe benefits received by the Executive on an annualized basis
multiplied by two (2).

          (ii) For a period of two (2) years from the Executive’s Date of Termination, or such longer
period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and the Executive’s family equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3(b)(iv) of the Employment Agreement if the Executive’s employment had not
been terminated; provided, however, that with respect to any of such plans, programs, practices or
policies requiring an employee contribution, the Executive (or Executive’s heirs or beneficiaries
as applicable) shall continue to pay the monthly employee contribution for same, and provided
further, that if the Executive becomes re-employed by another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If any of the dental, accident, health insurance or other
benefits specified in this Section 3(a)(ii) are taxable to the Executive and are not exempt from
Section 409A, the following provisions shall apply to the reimbursement or provision of such
benefits. The Executive shall be eligible for reimbursement for covered welfare expenses, or for
the provision of such benefits on an in-kind basis, during the period commencing on Executive’s
Date of Termination and ending on the third anniversary of such date. The amount of such welfare
benefit expenses eligible for reimbursement or the in-kind benefits provided under this Section
3(a)(ii), during the Executive’s taxable year will not affect the expenses eligible for
reimbursement, or the benefits to be provided, in any other taxable year (with the exception of
applicable lifetime maximums applicable to medical expenses or medical benefits described in
Section 105(b) of the Code). The Executive’s right to reimbursement or direct provision of
benefits under this Section 3(a)(ii) is not subject to liquidation or exchange for another benefit.
To the extent that the benefits provided to the Executive pursuant to this Section 3(a)(ii) are
taxable to the Executive and are not otherwise exempt from Section 409A, any reimbursement amounts
to which the Executive would otherwise be entitled under this Section 3(a)(ii) during the first six
months following the date of the Executive’s Separation From Service shall be accumulated and paid
to the Executive on the date that is six months following the date of his Separation From Service.
All reimbursements by the Company under this Section 3(a)(ii) shall be paid no later than the
earlier of (i) the time periods described above and (ii) the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred.

          (iii) All benefits and amounts under the Company’s deferred compensation plan and all other
benefit plans (except as specifically provided for in Section 4(b) below), not already vested shall
become immediately one hundred percent (100%) vested as of the Date of Termination. All options to
acquire common shares of the Parent, all restricted common shares of the Parent, and all share
appreciation rights the value of which is determined by reference to or based upon the value of
common shares of the Parent, held by the Executive under any plan of the Company or its affiliated
companies shall become immediately vested, exercisable and nonforfeitable. The effect, if any, of
a Change of Control on any other equity incentives and other awards the value of which is
determined by reference to

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or based upon the value of common shares of the Parent shall be determined in accordance with
the terms of the applicable award agreement.

          (iv) The Company shall, at its sole expense as incurred, provide the Executive with reasonable
outplacement services from a provider selected by the Executive in his sole discretion. The
Company shall directly pay the provider the fees for such outplacement services. The period during
which such outplacement services shall be provided to the Executive at the expense of the Company
shall not extend beyond the last day of the second taxable year of the Executive following the
taxable year of the Executive during which he incurs a Separation From Service.

          (v) At the time specified in clause (x) below, ownership of all country club memberships,
luncheon clubs and other memberships which the Company was providing for the Executive’s or his
family’s use prior to the time that the Notice of Termination is given shall be transferred and
assigned to the Executive at no cost to the Executive (other than ordinary income taxes owed), the
cost of transfer, if any, to be borne by the Company.

          (vi) At the time specified in clause (x) below, the Company shall pay the Executive a lump sum
in cash equal to the Executive’s annual car allowance multiplied by two (2).

          (vii) To the extent not already paid or provided, the Company shall timely pay or provide to
the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (collectively, the “Other Benefits”).

          (viii) If the Executive’s employment is terminated by reason of the Executive’s death, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and its affiliated companies to the estates and
beneficiaries of the executive officers of the Company and such affiliated companies under such
plans, programs, practices and policies relating to death benefits, if any, in effect on the date
hereof or, if more favorable, those in effect on the date of the Executive’s death.

          (ix) If the Executive’s employment is terminated by reason of the Executive’s Disability, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive shall be entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive’s disabled peer executive officers and/or their families in
accordance with such plans, programs, practices and policies relating to disability, if any, in
effect generally on the date hereof or, if more favorable, those in effect at the time of the
Disability.

          (x) The Company shall pay or provide to the Executive the amounts or benefits specified in
Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E), and Sections 3(a)(v) and
3(a)(vi) 30 days following the date of the Executive’s Separation From Service if he is not a
Specified Employee on the date of his Separation From Service or on the date that is six months
following the date of his Separation From Service if he is a Specified Employee.

          (xi) If the Executive is a Specified Employee, on the date that is six months following the
Executive’s Separation From Service, the Company shall pay to the Executive, in addition to the
amounts reflected in clause (x), an amount equal to the interest that would be earned on the
amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) and, to
the extent subject to a mandatory six-month delay in payment, all amounts payable under the ERP and
the SRP, for the

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period commencing on the date of the Executive’s Separation From Service until the date of
payment of such amounts, calculated using an interest rate of five percent per annum (the “Interest
Amount”).

          (xii) Notwithstanding any other provision of this Agreement to the contrary, the amount of the
payment under each of Sections 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) shall not exceed
the amount that would have been paid to the Executive had his Date of Termination occurred on
December 31, 2008.

     (b) Cause. If the Executive’s employment is terminated for Cause during the Employment Period
and prior to the expiration of the Term of the Agreement, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination for periods following his Separation From
Service on the date that is 30 days following the date of the Employee’s Separation From Service if
he is not a Specified Employee or on the date that is six months following the date of his
Separation From Service if he is a Specified Employee, and (y) Other Benefits, to the extent
theretofore unpaid.

     (c) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period and prior to the expiration of the Term of
the Agreement for any reason other than for Good Reason, the Executive’s employment shall terminate
without further obligations to the Executive, other than (x) the obligation to pay to the Executive
his Annual Base Salary through the Date of Termination for periods following his Separation From
Service, (y) Other Benefits and (z) the rights provided in Section 4. The Company shall pay to the
Executive the amount specified in clause (x) on the date that is 30 days following the date of the
Employee’s Separation From Service if he is not a Specified Employee or on the date that is six
months following the date of his Separation From Service if he is a Specified Employee.

4. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any plan,
contract or agreement with the Company or any of its affiliated companies. Except as otherwise
expressly provided herein, amounts which are vested benefits, which vest according to the terms of
this Agreement or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies prior to, at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice, program, contract or agreement. If any severance payments are
required to be paid to the Executive in conjunction with severance of employment under federal,
state or local law, the severance payments paid to the Executive under this Agreement will be
deemed to be in satisfaction of any such statutorily required benefit obligations to the extent
that doing so would not result in an acceleration of payment of nonqualified deferred compensation
that is prohibited under Section 409A.

     (b) Solely with respect to the ERP and the SRP, if the Executive’s employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has occurred or is
pending, any ERP or SRP benefits payable shall only be those that are payable, if any, under the
terms of the ERP or SRP as of the Date of Termination.

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5. Full Settlement.

     (a) No Rights of Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.

     (b) No Mitigation Required. The Company agrees that, if the Executive’s employment with the
Company terminates, the Executive is not required to seek other employment or to attempt in any way
to reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as specified in Section 3(a)(ii), the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

     (c) Legal Fees. The Company agrees to pay promptly as incurred, to the full extent permitted
by law, all legal fees and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or the Employment Agreement
or any guarantee of performance thereto (including as a result of any contest by the Executive
about the amount of any payment pursuant to this Agreement or the Employment Agreement). The legal
fees or expenses that are subject to reimbursement pursuant to this Section 5(c) shall not be
limited as a result of when the fees or expenses are incurred. The amount of legal fees or
expenses that is eligible for reimbursement pursuant to this Section 5(c) during a given taxable
year of the Executive shall not affect the amount of expenses eligible for reimbursement in any
other taxable year of the Executive. The right to reimbursement pursuant to this Section 5(c) is
not subject to liquidation or exchange for another benefit. Any amount to which the Executive is
entitled to reimbursement under this Section 5(c) during the first six months following the date of
the Executive’s Separation From Service shall be accumulated and paid to the Executive on the date
that is six months following the date of his Separation From Service. All reimbursements by the
Company under this Section 5(c) shall be paid no later than the earlier of (i) the time periods
described above and (ii) the last day of the Executive’s taxable year next following the taxable
year in which the expense was incurred.

6. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution by the Parent, the Company or any of their affiliated companies to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement, any other plan, agreement or contract or otherwise, but determined
without regard to any additional payments required under this Section 6) (a “Payment”) would be
subject to any additional tax or excise tax imposed by sections 409A, 457A or 4999 of the Code (and
any successor provisions or sections to sections 409A, 457A and 4999) or any interest or penalties
are incurred by the Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to promptly receive from the Company an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Any Gross Up Payment shall be made by the Company at least
10 days prior to the date that the Executive is required to remit to the relevant taxing authority
any federal, state and local taxes imposed upon the Executive, including the amount of

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additional taxes imposed upon the Executive due to the Company’s payment of the initial taxes
on such amounts. Notwithstanding any provision of this Agreement to the contrary, any amounts to
which the Executive would otherwise be entitled under this Section 6(a) during the first six months
following the date of the Executive’s Separation From Service shall be accumulated and paid to the
Executive on the date that is six months following the date of his Separation From Service. All
reimbursements by the Company under this Section 6(a) be paid no later than the earlier of (i) the
time periods described above and (ii) the last day of the Executive’s taxable year next following
the taxable year in which the expense was incurred.

     (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public accounting firm as may
be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to the Executive within five
(5) days after the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm, absent manifest error, shall be binding upon the Company and the Executive,
subject to the last sentence of Section 6(a), and in no event later than the payment deadline
specified in Section 6(a). As a result of the uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive, subject to the last sentence of Section 6(a), and in no event
later than the payment deadline specified in Section 6(a).

     (c) The Executive shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification shall be given as
soon as practicable, but no later than ten business days after the Executive is informed in writing
of such claim, and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30)-day period following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If
the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

          (i) give the Company any information reasonably requested by the Company relating to such
claim,

          (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

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          (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to such claims; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred at any time during the period that ends ten years following the
lifetime of the Executive in connection with such proceedings and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. The Company shall not direct the Executive to pay
such a claim and sue for a refund if, due to the prohibitions of section 402 of the Sarbanes-Oxley
Act of 2002, the Company may not advance to the Executive the amount necessary to pay such claim.
All such costs and expenses shall be made by the Company at least 10 days prior to the date that
the Executive is required to pay or incur such costs and expenses. The costs and expenses that are
subject to be paid by the Company pursuant to this Section 6(c) shall not be limited as a result of
when the costs or expenses are incurred. The amounts of costs or expenses that are eligible for
payment pursuant to this Section 6(c)(iv) during a given taxable year of the Executive shall not
affect the amount of costs or expenses eligible for payment in any other taxable year of the
Executive. The right to payment of costs and expenses pursuant to this Section 6(c)(iv) is not
subject to liquidation or exchange for another benefit. Notwithstanding any provision of this
Agreement to the contrary, any amounts to which the Executive would otherwise be entitled under
this Section 6(c)(iv) during the first six months following the date of the Employee’s Separation
From Service shall be accumulated and paid to the Executive on the date that is six months
following the date of his Separation From Service. All reimbursements by the Company under this
Section 6(c)(iv) shall be paid no later than the earlier of (i) the time periods described above
and (ii) the last day of the Executive’s taxable year next following the taxable year in which the
expense was incurred.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall not be required to be repaid.

- 12 -

 

     (e) Any provision in this Agreement or any other plan or agreement to the contrary
notwithstanding, if the Company is required to pay a Gross-Up Payment pursuant to the provisions of
this Agreement and pursuant to the provisions of another plan or agreement, then the Company shall
pay the total of the amounts determined pursuant to this Agreement and the provisions of such other
plan or agreement.

7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement), information that is developed by the Executive independently of such information,
or knowledge or data or information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

8. Disputed Payments And Failures To Pay. If the Company fails to make a payment under
this Agreement in whole or in part as of the payment date specified in this Agreement, either
intentionally or unintentionally, other than with the consent of the Employee, the Company shall
owe the Employee interest on the delayed payment at the applicable Federal rate provided for in
section 7872(f)(2)(A) of the Code if the Employee (i) accepts the portion (if any) of the payment
that the Company is willing to make (unless such acceptance will result in a relinquishment of the
claim to all or part of the remaining amount) and (ii) makes prompt and reasonable good faith
efforts to collect the remaining portion of the payment. Any such interest payments shall become
due and payable effective as of the applicable payment date(s) specified in Section 3 with respect
to the delinquent payment(s) due under Section 3.

9. Funding. The Executive shall have no right, title, or interest whatsoever in or to any
assets of the Company or any investments which the Company may make to aid it in meeting its
obligations under this Agreement. The Executive’s right to receive payments under this Agreement
shall be no greater than the right of an unsecured general creditor of the Company. Immediately
prior to a Change in Control, the Company shall create an irrevocable grantor trust (the “Rabbi
Trust”) which shall be subject to the claims of creditors of the Company. In the event that the
Executive is a Specified Employee at the time he incurs a Separation From Service or at the time
the Company determines that it is reasonably likely that the Executive will incur a Separation From
Service in connection with a Change in Control, then immediately upon the Executive’s Separation
From Service or, if earlier, the date on which the Company makes a determination that the Executive
is reasonably likely to incur a Separation From Services in connection with a Change in Control,
the Company shall transfer to the Rabbi Trust cash sufficient (on an undiscounted basis) to pay the
cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E),
the estimated amount of the Gross-Up Payment to be made under Section 6 and the Interest Amount.
The cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and
3(a)(i)(E), the Gross-Up Payment and the Interest Amount shall be paid from the Rabbi Trust on the
dates specified in Sections 3 and 6 herein, provided that the Company shall remain liable to pay
any all amounts which for any reason are not paid from the Rabbi Trust. The trustee of the Rabbi
Trust shall be a bank or trust company selected by the Company and approved by the Executive (in
his sole discretion) prior to the Change in Control.

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10. Successors.

     (a) This Agreement is personal to the Executive and shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation,
amalgamation, scheme of arrangement, exchange offer, operation of law or otherwise (including any
purchase, merger, amalgamation, Corporate Transaction or other transaction involving the Parent,
Company or any subsidiary or Affiliate of the Company), to all or substantially all of the
Company’s or Parent’s business and/or the Parent’s Assets or the Company’s assets to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change of
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as provided above.

11. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Jessica Abarca
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Weatherford International, Inc.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

- 14 -

 

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right to the Executive or the Company may
have hereunder, including without limitation, the right of the Executive to terminate employment
for Good Reason shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

     (f) This Agreement constitutes the entire agreement and understanding between the parties
relating to the subject matter hereof and supersedes all prior agreements between the parties
relating to the subject matter hereof, including, without limitation, the Prior Agreements.

     (g) Notwithstanding any other provision of this Agreement, no benefits or payments hereunder
shall be provided or paid following December 31, 2010.

- 15 -

 

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Jessica Abarca
	 	 
	 	 	 	 	 
	 

	 	 	 	Jessica Abarca	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner
 

Bernard J. Duroc-Danner
	 	 
	 

	 	 	 	President	 	 

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EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of January 1, 2009 (the
“Effective Date”), by and between Weatherford International, Inc., a Delaware corporation (the
“Company”), and Andrew P. Becnel (the “Executive”).

W I T N
E S S E T H:

     WHEREAS, the Company has determined that it is in the interest of the Company and the
shareholders of Weatherford International Ltd. for the Company to commit to provide certain
severance benefits to the Executive in the event of his termination of employment under certain
conditions;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree:

1. Certain Definitions.

     (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (b) “Annual Base Salary” shall have the meaning specified in the Employment Agreement.

     (c) “Annual Bonus” shall mean the Executive’s annual bonus under the annual incentive plan of
the Company and any of its Affiliates.

     (d) “Annual Bonus Amount” shall mean the sum of (a) the amount of the Annual Bonus, if any,
paid or provided in any form (whether in cash, securities or any combination thereof) by the
Company or any of its Affiliates to or for the benefit of the Executive for services rendered or
labor performed during a fiscal year of the Company and (b) the amount of the discretionary bonus
or other bonus paid outside of the Company’s annual incentive plan, if any, paid or provided in any
form (whether in cash, securities or any combination thereof) by the Company or any of its
Affiliates to or for the benefit of the Employee (it being understood that if multiple bonuses are
paid for any given year, or if a bonus is made in multiple installments for a year, all such
bonuses or installments shall be aggregated as a single payment for that year in determining the
Annual Bonus Amount). The Executive’s Annual Bonus Amount shall be determined by including any
portion thereof that the Executive could have received in cash or securities in lieu of (i) any
elective deferrals made by the Executive pursuant to all nonqualified deferred compensation plans
or (ii) elective contributions made on the Executive’s behalf by the Company pursuant to a
qualified cash or deferred arrangement (as defined in section 401(k) of the Code) or pursuant to a
plan maintained under section 125 of the Code.

     (e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

     (f) “Board” shall mean the Board of Directors of the Parent.

     (g) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’s duties with the Parent or the Company (other than any such failure resulting from
incapacity due to physical or mental illness or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 4(d) of the Employment
Agreement), after a written

- 1 -

 

demand for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially performed the
Executive’s duties, or

          (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Parent or the Company.

     No act, or failure to act, on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the Parent or the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more senior officer of the
Company or based upon the advice of counsel for the Parent (which may be the General Counsel or
other counsel employed by the Parent or its subsidiaries) shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best interests of the Parent
or the Company. The cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive, and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

     (h) “Change of Control” shall be deemed to have occurred if any event set forth in any one of
the following paragraphs shall have occurred:

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Parent (the “Outstanding
Parent Common Shares”) or (B) the combined voting power of the then outstanding voting securities
of the Parent entitled to vote generally in the election of directors (the “Outstanding Parent
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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Parent’s shareholders, was approved by a vote of at least two-thirds (2/3) 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 any 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, scheme of
arrangement, exchange offer or similar transaction of the Parent or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the Parent’s Assets (any of
which 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 (which, for
purposes of this Agreement, shall include, without limitation, any corporation, partnership,
association, joint-stock company, limited liability company, trust, unincorporated organization or
other business entity) who were the beneficial owners, respectively, of the Outstanding Parent
Common Shares and Outstanding Parent Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than sixty-six and two-thirds percent
(66-2/3%) of, respectively, the then outstanding

- 2 -

 

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 Parent or all or substantially all of the Parent’s
Assets either directly or through one (1) or more subsidiaries or entities) in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Parent Common Shares and the Outstanding Parent 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 Parent or such entity resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock 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 (2/3) 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

          (iv) Approval or adoption by the Board of Directors or the shareholders of the Parent 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 Parent’s Assets or the dissolution of the Parent.

     (i) “Disability” shall mean the absence of the Executive from performance of the Executive’s
duties with the Parent on a substantial basis for one hundred twenty (120) calendar days as a
result of incapacity due to mental or physical illness.

     (j) “Employment Agreement” shall mean the Executive’s employment agreement with the Parent, as
it may be amended from time to time.

     (k) “Employment Period” shall have the meaning specified in the Employment Agreement.

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

     (m) “ERP” shall mean the Weatherford International Ltd. Nonqualified Executive Retirement
Plan, as it may be amended from time to time.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (o) “Good Reason” shall mean the occurrence of any of the following:

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of the
Employment Agreement, or any other action by the Parent or the Company which results in a
diminution in such position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Parent or the Company promptly after receipt of notice thereof given by the Executive;

          (ii) any failure by the Parent or the Company to comply with any of the provisions of this
Agreement or the Employment Agreement (including, without limitation, its obligations under Section
3(a) of the Employment Agreement), other than an isolated, insubstantial and inadvertent failure

- 3 -

 

not occurring in bad faith and which is remedied by the Parent or the Company promptly after
receipt of notice thereof given by the Executive;

          (iii) any failure by the Parent or the Company to continue to provide the Executive with
benefits currently enjoyed by the Executive under any of the Parent’s and the Company’s
compensation, bonus, retirement, pension, savings, life insurance, medical, health and accident, or
disability plans, or the taking of any other action by the Parent or the Company which would
directly or indirectly reduce any of such benefits or deprive the Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

          (iv) the Parent’s or the Company’s requiring the Executive to be based at any office or
location other than as provided in Section 3(a)(i) of the Employment Agreement or the Parent’s or
the Company’s requiring the Executive to travel on business to a substantially greater extent than
required immediately prior to the date hereof;

          (v) any purported termination by the Parent or the Company of the Executive’s employment
(including, without limitation, any secondment of the Executive without the Executive’s prior
express agreement in writing);

          (vi) any failure by the Parent to comply with and satisfy Section 10(b) of the Employment
Agreement;

          (vii) failure by the Parent (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive prior to the
termination or expiration of this Agreement, with such employment agreement and executive
retirement plan having the same terms and conditions as existed in agreements and plans between the
Parent or the Company and the Executive prior to December 30, 2008, and incorporating such terms
and conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

          (viii) in connection with, as a result of or following a Change of Control, the giving of
notice to the Executive that the Employment Period shall not be extended.

     In the event of a Change of Control or other Corporate Transaction in which the Parent’s
common shares may cease to be publicly traded, following the Change of Control or the consummation
of such other Corporate Transaction, “Good Reason” shall be deemed to exist upon the occurrence of
any of the events listed in clauses (i) through (vii) above and also in the event Executive is
assigned to any position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities that are (A) not at or with the publicly-traded ultimate parent company
of the successor to the Parent or the corporation or other entity surviving or resulting from such
Corporate Transaction or (B) inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 3(a) of the Employment Agreement.

     For purposes of this Agreement, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

     (p) “IRS” shall mean the Internal Revenue Service.

     (q) “Parent” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

- 4 -

 

     (r) “Parent’s Assets” shall mean the assets (of any kind) owned by the Parent, including,
without limitation, the securities of the Parent’s Subsidiaries and any of the assets owned by the
Parent’s Subsidiaries.

     (s) “Person” shall have the meaning given 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
Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Parent or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering by the Parent of such securities, or (iv) a corporation
or other entity owned, directly or indirectly, by the shareholders of the Parent in the same
proportions as their ownership of common shares of the Parent.

     (t) “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended
and the final Department of Treasury regulations issued thereunder.

     (u) “Separation From Service” shall have the meaning ascribed to such term in Section 409A.

     (v) “Specified Employee” shall have the meaning ascribed to such term in Section 409A.

     (w) “SRP” shall mean the Weatherford International, Inc. Supplemental Retirement Plan, as it
may be amended from time to time.

     (x) “Subsidiary” shall mean any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for the purposes of this Agreement.

     (y) “Term of the Agreement” shall mean the period commencing on January 1, 2009 and ending on
December 31, 2009.

2. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Parent determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with the Employment Agreement of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Parent shall terminate
effective thirty (30) days after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that within the thirty (30)-day period after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties. In addition, if a physician
selected by the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in accordance with
the Employment Agreement of the Executive’s intention to terminate his employment. In such event,
the Disability Effective Date shall be thirty (30) days after receipt of such notice by the
Company.

     (b) Cause. The Parent may terminate the Executive’s employment during the Employment Period
for Cause.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive at any time
during the Employment Period for Good Reason.

- 5 -

 

     (d) Notice of Termination. Any termination during the Employment Period shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement or the Employment Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date, in the case of a notice
by the Company, shall be not more than 30 days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” shall mean:

          (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be;

          (ii) if the Executive’s employment is terminated by the Company or the Parent other than for
Cause, the Date of Termination shall be the date on which the Executive receives notice of such
termination; and

          (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability Effective Date, as the
case may be.

3. Obligations of the Company Upon Termination.

     (a) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period
and prior to the expiration of the Term of the Agreement, the Executive’s employment is terminated
by reason of the Executive’s death or Disability, by the Parent or the Company for any reason other
than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable), at the times specified in clause (x), the following amounts:

               (A) an amount equal to the Executive’s Annual Base Salary through the Date of Termination for
periods following his Separation From Service to the extent not theretofore paid;

               (B) an amount equal to the product of (x) the higher of (I) the highest Annual Bonus Amount
for the preceding five (5) calendar years and (II) the Annual Bonus Amount that would be payable in
respect of the current fiscal year (and annualized for any fiscal year consisting of less than
twelve (12) months) (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is three hundred sixty-five (365);

               (C) an amount equal to three times the sum of (i) the highest Annual Base Salary received by
the Executive in the last five (5) years ended prior to the Termination Date and (ii) the Highest
Annual Bonus;

- 6 -

 

               (D) an amount equal to three times the sum of (i) the total of the employer basic and matching
contributions credited to the Executive under the Company’s 401(k) Savings Plan (the “401(k) Plan”)
during the twelve (12)-month period immediately preceding the month of the Executive’s Date of
Termination, and (ii) the amount that would have been credited and contributed to the Executive and
his accounts under all other deferred compensation plans (excluding the ERP and the SRP) using the
amounts specified in clauses (i) and (ii) of Section 3(a)(i)(C), such total amount to be grossed up
so that the amount the Executive actually receives after payment of any federal or state taxes
payable thereon equals the amount first described above; and

               (E) the total value of all fringe benefits received by the Executive on an annualized basis
multiplied by three (3).

          (ii) For a period of three (3) years from the Executive’s Date of Termination, or such longer
period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and the Executive’s family equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3(b)(iv) of the Employment Agreement if the Executive’s employment had not
been terminated; provided, however, that with respect to any of such plans, programs, practices or
policies requiring an employee contribution, the Executive (or Executive’s heirs or beneficiaries
as applicable) shall continue to pay the monthly employee contribution for same, and provided
further, that if the Executive becomes re-employed by another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If any of the dental, accident, health insurance or other
benefits specified in this Section 3(a)(ii) are taxable to the Executive and are not exempt from
Section 409A, the following provisions shall apply to the reimbursement or provision of such
benefits. The Executive shall be eligible for reimbursement for covered welfare expenses, or for
the provision of such benefits on an in-kind basis, during the period commencing on Executive’s
Date of Termination and ending on the third anniversary of such date. The amount of such welfare
benefit expenses eligible for reimbursement or the in-kind benefits provided under this Section
3(a)(ii), during the Executive’s taxable year will not affect the expenses eligible for
reimbursement, or the benefits to be provided, in any other taxable year (with the exception of
applicable lifetime maximums applicable to medical expenses or medical benefits described in
Section 105(b) of the Code). The Executive’s right to reimbursement or direct provision of
benefits under this Section 3(a)(ii) is not subject to liquidation or exchange for another benefit.
To the extent that the benefits provided to the Executive pursuant to this Section 3(a)(ii) are
taxable to the Executive and are not otherwise exempt from Section 409A, any reimbursement amounts
to which the Executive would otherwise be entitled under this Section 3(a)(ii) during the first six
months following the date of the Executive’s Separation From Service shall be accumulated and paid
to the Executive on the date that is six months following the date of his Separation From Service.
All reimbursements by the Company under this Section 3(a)(ii) shall be paid no later than the
earlier of (i) the time periods described above and (ii) the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred.

          (iii) All benefits and amounts under the Company’s deferred compensation plan and all other
benefit plans (except as specifically provided for in Section 4(b) below), not already vested shall
become immediately one hundred percent (100%) vested as of the Date of Termination. All options to
acquire common shares of the Parent, all restricted common shares of the Parent, and all share
appreciation rights the value of which is determined by reference to or based upon the value of
common shares of the Parent, held by the Executive under any plan of the Company or its affiliated
companies shall become immediately vested, exercisable and nonforfeitable. The effect, if any, of
a Change of Control on any other equity incentives and other awards the value of which is
determined by reference to

- 7 -

 

or based upon the value of common shares of the Parent shall be determined in accordance with
the terms of the applicable award agreement.

          (iv) The Company shall, at its sole expense as incurred, provide the Executive with reasonable
outplacement services from a provider selected by the Executive in his sole discretion. The
Company shall directly pay the provider the fees for such outplacement services. The period during
which such outplacement services shall be provided to the Executive at the expense of the Company
shall not extend beyond the last day of the second taxable year of the Executive following the
taxable year of the Executive during which he incurs a Separation From Service.

          (v) At the time specified in clause (x) below, ownership of all country club memberships,
luncheon clubs and other memberships which the Company was providing for the Executive’s or his
family’s use prior to the time that the Notice of Termination is given shall be transferred and
assigned to the Executive at no cost to the Executive (other than ordinary income taxes owed), the
cost of transfer, if any, to be borne by the Company.

          (vi) At the time specified in clause (x) below, the Company shall either transfer to the
Executive ownership and title to the Executive’s company car at no cost (other than ordinary income
taxes owed by the Executive) to the Executive or, if the Executive receives a monthly car allowance
in lieu of a Company car, pay the Executive a lump sum in cash equal to the Executive’s annual car
allowance multiplied by three (3).

          (vii) To the extent not already paid or provided, the Company shall timely pay or provide to
the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (collectively, the “Other Benefits”).

          (viii) If the Executive’s employment is terminated by reason of the Executive’s death, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and its affiliated companies to the estates and
beneficiaries of the executive officers of the Company and such affiliated companies under such
plans, programs, practices and policies relating to death benefits, if any, in effect on the date
hereof or, if more favorable, those in effect on the date of the Executive’s death.

          (ix) If the Executive’s employment is terminated by reason of the Executive’s Disability, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive shall be entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive’s disabled peer executive officers and/or their families in
accordance with such plans, programs, practices and policies relating to disability, if any, in
effect generally on the date hereof or, if more favorable, those in effect at the time of the
Disability.

          (x) The Company shall pay or provide to the Executive the amounts or benefits specified in
Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E), and Sections 3(a)(v) and
3(a)(vi) 30 days following the date of the Executive’s Separation From Service if he is not a
Specified Employee on the date of his Separation From Service or on the date that is six months
following the date of his Separation From Service if he is a Specified Employee.

          (xi) If the Executive is a Specified Employee, on the date that is six months following the
Executive’s Separation From Service, the Company shall pay to the Executive, in addition to the

- 8 -

 

amounts reflected in clause (x), an amount equal to the interest that would be earned on the
amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) and, to
the extent subject to a mandatory six-month delay in payment, all amounts payable under the ERP and
the SRP, for the
period commencing on the date of the Executive’s Separation From Service until the
date of payment of such amounts, calculated using an interest rate of five percent per annum (the
“Interest Amount”).

          (xii) Notwithstanding any other provision of this Agreement to the contrary, the amount of the
payment under each of Sections 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) shall not exceed
the amount that would have been paid to the Executive had his Date of Termination occurred on
December 31, 2008.

     (b) Cause. If the Executive’s employment is terminated for Cause during the Employment Period
and prior to the expiration of the Term of the Agreement, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination for periods following his Separation From
Service on the date that is 30 days following the date of the Employee’s Separation From Service if
he is not a Specified Employee or on the date that is six months following the date of his
Separation From Service if he is a Specified Employee, and (y) Other Benefits, to the extent
theretofore unpaid.

     (c) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period and prior to the expiration of the Term of
the Agreement for any reason other than for Good Reason, the Executive’s employment shall terminate
without further obligations to the Executive, other than (x) the obligation to pay to the Executive
his Annual Base Salary through the Date of Termination for periods following his Separation From
Service, (y) Other Benefits and (z) the rights provided in Section 4. The Company shall pay to the
Executive the amount specified in clause (x) on the date that is 30 days following the date of the
Employee’s Separation From Service if he is not a Specified Employee or on the date that is six
months following the date of his Separation From Service if he is a Specified Employee.

4. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any plan,
contract or agreement with the Company or any of its affiliated companies. Except as otherwise
expressly provided herein, amounts which are vested benefits, which vest according to the terms of
this Agreement or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies prior to, at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice, program, contract or agreement. If any severance payments are
required to be paid to the Executive in conjunction with severance of employment under federal,
state or local law, the severance payments paid to the Executive under this Agreement will be
deemed to be in satisfaction of any such statutorily required benefit obligations to the extent
that doing so would not result in an acceleration of payment of nonqualified deferred compensation
that is prohibited under Section 409A.

     (b) Solely with respect to the ERP and the SRP, if the Executive’s employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has occurred or is
pending, any ERP or SRP benefits payable shall only be those that are payable, if any, under the
terms of the ERP or SRP as of the Date of Termination.

 - 9 - 

 

5. Full Settlement.

     (a) No Rights of Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.

     (b) No Mitigation Required. The Company agrees that, if the Executive’s employment with the
Company terminates, the Executive is not required to seek other employment or to attempt in any way
to reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as specified in Section 3(a)(ii), the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

     (c) Legal Fees. The Company agrees to pay promptly as incurred, to the full extent permitted
by law, all legal fees and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or the Employment Agreement
or any guarantee of performance thereto (including as a result of any contest by the Executive
about the amount of any payment pursuant to this Agreement or the Employment Agreement). The legal
fees or expenses that are subject to reimbursement pursuant to this Section 5(c) shall not be
limited as a result of when the fees or expenses are incurred. The amount of legal fees or
expenses that is eligible for reimbursement pursuant to this Section 5(c) during a given taxable
year of the Executive shall not affect the amount of expenses eligible for reimbursement in any
other taxable year of the Executive. The right to reimbursement pursuant to this Section 5(c) is
not subject to liquidation or exchange for another benefit. Any amount to which the Executive is
entitled to reimbursement under this Section 5(c) during the first six months following the date of
the Executive’s Separation From Service shall be accumulated and paid to the Executive on the date
that is six months following the date of his Separation From Service. All reimbursements by the
Company under this Section 5(c) shall be paid no later than the earlier of (i) the time periods
described above and (ii) the last day of the Executive’s taxable year next following the taxable
year in which the expense was incurred.

6. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution by the Parent, the Company or any of their affiliated companies to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement, any other plan, agreement or contract or otherwise, but determined
without regard to any additional payments required under this Section 6) (a “Payment”) would be
subject to any additional tax or excise tax imposed by sections 409A, 457A or 4999 of the Code (and
any successor provisions or sections to sections 409A, 457A and 4999) or any interest or penalties
are incurred by the Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to promptly receive from the Company an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Any Gross Up Payment shall be made by the Company at least
10 days prior to the date that the Executive is required to remit to the relevant taxing authority
any federal, state and local taxes imposed upon the Executive, including the amount of

 - 10 - 

 

additional taxes imposed upon the Executive due to the Company’s payment of the initial taxes
on such amounts. Notwithstanding any provision of this Agreement to the contrary, any amounts to
which the Executive would otherwise be entitled under this Section 6(a) during the first six months
following the date of the Executive’s Separation From Service shall be accumulated and paid to the
Executive on the date that is six months following the date of his Separation From Service. All
reimbursements by the Company under this Section 6(a) be paid no later than the earlier of (i) the
time periods described above and (ii) the last day of the Executive’s taxable year next following
the taxable year in which the expense was incurred.

     (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public accounting firm as may
be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to the Executive within five
(5) days after the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm, absent manifest error, shall be binding upon the Company and the Executive,
subject to the last sentence of Section 6(a), and in no event later than the payment deadline
specified in Section 6(a). As a result of the uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive, subject to the last sentence of Section 6(a), and in no event
later than the payment deadline specified in Section 6(a).

     (c) The Executive shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification shall be given as
soon as practicable, but no later than ten business days after the Executive is informed in writing
of such claim, and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30)-day period following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If
the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

          (i) give the Company any information reasonably requested by the Company relating to such
claim,

          (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

 - 11 - 

 

          (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to such claims; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred at any time during the period that ends ten years following the
lifetime of the Executive in connection with such proceedings and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. The Company shall not direct the Executive to pay
such a claim and sue for a refund if, due to the prohibitions of section 402 of the Sarbanes-Oxley
Act of 2002, the Company may not advance to the Executive the amount necessary to pay such claim.
All such costs and expenses shall be made by the Company at least 10 days prior to the date that
the Executive is required to pay or incur such costs and expenses. The costs and expenses that are
subject to be paid by the Company pursuant to this Section 6(c) shall not be limited as a result of
when the costs or expenses are incurred. The amounts of costs or expenses that are eligible for
payment pursuant to this Section 6(c)(iv) during a given taxable year of the Executive shall not
affect the amount of costs or expenses eligible for payment in any other taxable year of the
Executive. The right to payment of costs and expenses pursuant to this Section 6(c)(iv) is not
subject to liquidation or exchange for another benefit. Notwithstanding any provision of this
Agreement to the contrary, any amounts to which the Executive would otherwise be entitled under
this Section 6(c)(iv) during the first six months following the date of the Employee’s Separation
From Service shall be accumulated and paid to the Executive on the date that is six months
following the date of his Separation From Service. All reimbursements by the Company under this
Section 6(c)(iv) shall be paid no later than the earlier of (i) the time periods described above
and (ii) the last day of the Executive’s taxable year next following the taxable year in which the
expense was incurred.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall not be required to be repaid.

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     (e) Any provision in this Agreement or any other plan or agreement to the contrary
notwithstanding, if the Company is required to pay a Gross-Up Payment pursuant to the provisions of
this Agreement and pursuant to the provisions of another plan or agreement, then the Company shall
pay the total of the amounts determined pursuant to this Agreement and the provisions of such other
plan or agreement.

7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement), information that is developed by the Executive independently of such information,
or knowledge or data or information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

8. Disputed Payments And Failures To Pay. If the Company fails to make a payment under
this Agreement in whole or in part as of the payment date specified in this Agreement, either
intentionally or unintentionally, other than with the consent of the Employee, the Company shall
owe the Employee interest on the delayed payment at the applicable Federal rate provided for in
section 7872(f)(2)(A) of the Code if the Employee (i) accepts the portion (if any) of the payment
that the Company is willing to make (unless such acceptance will result in a relinquishment of the
claim to all or part of the remaining amount) and (ii) makes prompt and reasonable good faith
efforts to collect the remaining portion of the payment. Any such interest payments shall become
due and payable effective as of the applicable payment date(s) specified in Section 3 with respect
to the delinquent payment(s) due under Section 3.

9. Funding. The Executive shall have no right, title, or interest whatsoever in or to any
assets of the Company or any investments which the Company may make to aid it in meeting its
obligations under this Agreement. The Executive’s right to receive payments under this Agreement
shall be no greater than the right of an unsecured general creditor of the Company. Immediately
prior to a Change in Control, the Company shall create an irrevocable grantor trust (the “Rabbi
Trust”) which shall be subject to the claims of creditors of the Company. In the event that the
Executive is a Specified Employee at the time he incurs a Separation From Service or at the time
the Company determines that it is reasonably likely that the Executive will incur a Separation From
Service in connection with a Change in Control, then immediately upon the Executive’s Separation
From Service or, if earlier, the date on which the Company makes a determination that the Executive
is reasonably likely to incur a Separation From Services in connection with a Change in Control,
the Company shall transfer to the Rabbi Trust cash sufficient (on an undiscounted basis) to pay the
cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E),
the estimated amount of the Gross-Up Payment to be made under Section 6 and the Interest Amount.
The cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and
3(a)(i)(E), the Gross-Up Payment and the Interest Amount shall be paid from the Rabbi Trust on the
dates specified in Sections 3 and 6 herein, provided that the Company shall remain liable to pay
any all amounts which for any reason are not paid from the Rabbi Trust. The trustee of the Rabbi
Trust shall be a bank or trust company selected by the Company and approved by the Executive (in
his sole discretion) prior to the Change in Control.

 - 13 - 

 

10. Successors.

     (a) This Agreement is personal to the Executive and shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation,
amalgamation, scheme of arrangement, exchange offer, operation of law or otherwise (including any
purchase, merger, amalgamation, Corporate Transaction or other transaction involving the Parent,
Company or any subsidiary or Affiliate of the Company), to all or substantially all of the
Company’s or Parent’s business and/or the Parent’s Assets or the Company’s assets to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change of
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as provided above.

11. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	If to the Executive:

	 	Andrew P. Becnel
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 
	 	 
	If to the Company:

	 	Weatherford International, Inc.
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 

	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

 - 14 - 

 

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right to the Executive or the Company may
have hereunder, including without limitation, the right of the Executive to terminate employment
for Good Reason shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

     (f) This Agreement constitutes the entire agreement and understanding between the parties
relating to the subject matter hereof and supersedes all prior agreements between the parties
relating to the subject matter hereof, including, without limitation, the Prior Agreements.

     (g) Notwithstanding any other provision of this Agreement, no benefits or payments hereunder
shall be provided or paid following December 31, 2010.

 - 15 - 

 

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	      /s/ Andrew P. Becnel	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	      Andrew P. Becnel	 	 
	 
	 	 	 	 	 	 
	 

	 	WEATHERFORD INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	      /s/ Bernard J. Duroc-Danner
 

     Bernard J. Duroc-Danner 

     President
	 	 

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EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of January 1, 2009 (the
“Effective Date”), by and between Weatherford International, Inc., a Delaware corporation (the
“Company”), and M. David Colley (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Company has determined that it is in the interest of the Company and the
shareholders of Weatherford International Ltd. for the Company to commit to provide certain
severance benefits to the Executive in the event of his termination of employment under certain
conditions;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree:

     1. Certain Definitions.

     (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (b) “Annual Base Salary” shall have the meaning specified in the Employment Agreement.

     (c) “Annual Bonus” shall mean the Executive’s annual bonus under the annual incentive plan of
the Company and any of its Affiliates.

     (d) “Annual Bonus Amount” shall mean the sum of (a) the amount of the Annual Bonus, if any,
paid or provided in any form (whether in cash, securities or any combination thereof) by the
Company or any of its Affiliates to or for the benefit of the Executive for services rendered or
labor performed during a fiscal year of the Company and (b) the amount of the discretionary bonus
or other bonus paid outside of the Company’s annual incentive plan, if any, paid or provided in any
form (whether in cash, securities or any combination thereof) by the Company or any of its
Affiliates to or for the benefit of the Employee (it being understood that if multiple bonuses are
paid for any given year, or if a bonus is made in multiple installments for a year, all such
bonuses or installments shall be aggregated as a single payment for that year in determining the
Annual Bonus Amount). The Executive’s Annual Bonus Amount shall be determined by including any
portion thereof that the Executive could have received in cash or securities in lieu of (i) any
elective deferrals made by the Executive pursuant to all nonqualified deferred compensation plans
or (ii) elective contributions made on the Executive’s behalf by the Company pursuant to a
qualified cash or deferred arrangement (as defined in section 401(k) of the Code) or pursuant to a
plan maintained under section 125 of the Code.

     (e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

     (f) “Board” shall mean the Board of Directors of the Parent.

     (g) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’s duties with the Parent or the Company (other than any such failure resulting from
incapacity due to physical or mental illness or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 4(d) of the Employment
Agreement), after a written

 - 1 - 

 

demand for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially performed the
Executive’s duties, or

          (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Parent or the Company.

     No act, or failure to act, on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the Parent or the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more senior officer of the
Company or based upon the advice of counsel for the Parent (which may be the General Counsel or
other counsel employed by the Parent or its subsidiaries) shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best interests of the Parent
or the Company. The cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive, and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

     (h) “Change of Control” shall be deemed to have occurred if any event set forth in any one of
the following paragraphs shall have occurred:

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Parent (the “Outstanding
Parent Common Shares”) or (B) the combined voting power of the then outstanding voting securities
of the Parent entitled to vote generally in the election of directors (the “Outstanding Parent
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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Parent’s shareholders, was approved by a vote of at least two-thirds (2/3) 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 any 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, scheme of
arrangement, exchange offer or similar transaction of the Parent or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the Parent’s Assets (any of
which 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 (which, for
purposes of this Agreement, shall include, without limitation, any corporation, partnership,
association, joint-stock company, limited liability company, trust, unincorporated organization or
other business entity) who were the beneficial owners, respectively, of the Outstanding Parent
Common Shares and Outstanding Parent Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than sixty-six and two-thirds percent
(66-2/3%) of, respectively, the then outstanding

 - 2 - 

 

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 Parent or all or substantially all of the Parent’s
Assets either directly or through one (1) or more subsidiaries or entities) in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Parent Common Shares and the Outstanding Parent 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 Parent or such entity resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock 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 (2/3) 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

          (iv) Approval or adoption by the Board of Directors or the shareholders of the Parent 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 Parent’s Assets or the dissolution of the Parent.

     (i) “Disability” shall mean the absence of the Executive from performance of the Executive’s
duties with the Parent on a substantial basis for one hundred twenty (120) calendar days as a
result of incapacity due to mental or physical illness.

     (j) “Employment Agreement” shall mean the Executive’s employment agreement with the Parent, as
it may be amended from time to time.

     (k) “Employment Period” shall have the meaning specified in the Employment Agreement.

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

     (m) “ERP” shall mean the Weatherford International Ltd. Nonqualified Executive Retirement
Plan, as it may be amended from time to time.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (o) “Good Reason” shall mean the occurrence of any of the following:

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
that are not materially consistent with the Executive’s position (including status, offices and
titles), authority, duties or responsibilities as contemplated by Section 3(a) of the Employment
Agreement, or any other action by the Parent or the Company which results in a diminution in such
position, authority, duties or responsibilities, excluding for this purpose any not taken in bad
faith and which is remedied by the Parent or the Company after receipt of notice thereof given by
the Executive;

          (ii) any failure by the Parent or the Company to comply with any of the provisions of this
Agreement or the Employment Agreement (including, without limitation, its obligations under Section
3(a) of the Employment Agreement), other than any failure
not occurring in bad faith and which is
remedied by the Parent or the Company after receipt of notice thereof given by the Executive;

 - 3 - 

 

          (iii) any failure by the Parent or the Company to continue to provide the Executive with
benefits currently enjoyed by the Executive under any of the Parent’s and the Company’s
compensation, bonus, retirement, pension, savings, life insurance, medical, health and accident, or
disability plans, or the taking of any other action by the Parent or the Company which would
directly or indirectly reduce any of such benefits or deprive the Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

          (iv) the Parent’s or the Company’s requiring the Executive to be based at any office or
location other than as provided in Section 3(a)(i) of the Employment Agreement or the Parent’s or
the Company’s requiring the Executive to travel on business to a substantially greater extent than
required immediately prior to the date hereof;

          (v) any purported termination by the Parent or the Company of the Executive’s employment
(including, without limitation, any secondment of the Executive without the Executive’s prior
express agreement in writing);

          (vi) any failure by the Parent to comply with and satisfy Section 10(b) of the Employment
Agreement;

          (vii) failure by the Parent (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive prior to the
termination or expiration of this Agreement, with such employment agreement and executive
retirement plan having the same terms and conditions as existed in agreements and plans between the
Parent or the Company and the Executive prior to December 30, 2008, and incorporating such terms
and conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

          (viii) in connection with, as a result of or following a Change of Control, the giving of
notice to the Executive that the Employment Period shall not be extended.

     In the event of a Change of Control or other Corporate Transaction in which the Parent’s
common shares may cease to be publicly traded, following the Change of Control or the consummation
of such other Corporate Transaction, “Good Reason” shall be deemed to exist upon the occurrence of
any of the events listed in clauses (i) through (vii) above and also in the event Executive is
assigned to any position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities that are (A) not at or with the publicly-traded ultimate parent company
of the successor to the Parent or the corporation or other entity surviving or resulting from such
Corporate Transaction or (B) inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 3(a) of the Employment Agreement.

     For purposes of this Agreement, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

     (p) “IRS” shall mean the Internal Revenue Service.

     (q) “Parent” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

 - 4 - 

 

     (r) “Parent’s Assets” shall mean the assets (of any kind) owned by the Parent, including,
without limitation, the securities of the Parent’s Subsidiaries and any of the assets owned by the
Parent’s Subsidiaries.

     (s) “Person” shall have the meaning given 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
Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Parent or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering by the Parent of such securities, or (iv) a corporation
or other entity owned, directly or indirectly, by the shareholders of the Parent in the same
proportions as their ownership of common shares of the Parent.

     (t) “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended
and the final Department of Treasury regulations issued thereunder.

     (u) “Separation From Service” shall have the meaning ascribed to such term in Section 409A.

     (v) “Specified Employee” shall have the meaning ascribed to such term in Section 409A.

     (w) “SRP” shall mean the Weatherford International, Inc. Supplemental Retirement Plan, as it
may be amended from time to time.

     (x) “Subsidiary” shall mean any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for the purposes of this Agreement.

     (y) “Term of the Agreement” shall mean the period commencing on January 1, 2009 and ending on
December 31, 2009.

2. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Parent determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with the Employment Agreement of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Parent shall terminate
effective thirty (30) days after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that within the thirty (30)-day period after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties. In addition, if a physician
selected by the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in accordance with
the Employment Agreement of the Executive’s intention to terminate his employment. In such event,
the Disability Effective Date shall be thirty (30) days after receipt of such notice by the
Company.

     (b) Cause. The Parent may terminate the Executive’s employment during the Employment Period
for Cause.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive at any time
during the Employment Period for Good Reason.

 - 5 - 

 

     (d) Notice of Termination. Any termination during the Employment Period shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement or the Employment Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date, in the case of a notice
by the Company, shall be not more than 30 days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” shall mean:

          (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be;

          (ii) if the Executive’s employment is terminated by the Company or the Parent other than for
Cause, the Date of Termination shall be the date on which the Executive receives notice of such
termination; and

          (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability Effective Date, as the
case may be.

3. Obligations of the Company Upon Termination.

     (a) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period
and prior to the expiration of the Term of the Agreement, the Executive’s employment is terminated
by reason of the Executive’s death or Disability, by the Parent or the Company for any reason other
than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable), at the times specified in clause (x), the following amounts:

               (A) an amount equal to the Executive’s Annual Base Salary through the Date of Termination for
periods following his Separation From Service to the extent not theretofore paid;

               (B) an amount equal to the product of (x) the higher of (I) the highest Annual Bonus Amount
for the preceding five (5) calendar years and (II) the Annual Bonus Amount that would be payable in
respect of the current fiscal year (and annualized for any fiscal year consisting of less than
twelve (12) months) (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is three hundred sixty-five (365);

               (C) an amount equal to two times the sum of (i) the highest Annual Base Salary received by the
Executive in the last five (5) years ended prior to the Termination Date and (ii) the Highest
Annual Bonus;

 - 6 - 

 

               (D) an amount equal to two times the sum of (i) the total of the employer basic and matching
contributions credited to the Executive under the Company’s 401(k) Savings Plan (the “401(k) Plan”)
during the twelve (12)-month period immediately preceding the month of the Executive’s Date of
Termination, and (ii) the amount that would have been credited and contributed to the Executive and
his accounts under all other deferred compensation plans (excluding the ERP and the SRP) using the
amounts specified in clauses (i) and (ii) of Section 3(a)(i)(C), such total amount to be grossed up
so that the amount the Executive actually receives after payment of any federal or state taxes
payable thereon equals the amount first described above; and

               (E) the total value of all fringe benefits received by the Executive on an annualized basis
multiplied by two (2).

          (ii) For a period of two (2) years from the Executive’s Date of Termination, or such longer
period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and the Executive’s family equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3(b)(iv) of the Employment Agreement if the Executive’s employment had not
been terminated; provided, however, that with respect to any of such plans, programs, practices or
policies requiring an employee contribution, the Executive (or Executive’s heirs or beneficiaries
as applicable) shall continue to pay the monthly employee contribution for same, and provided
further, that if the Executive becomes re-employed by another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If any of the dental, accident, health insurance or other
benefits specified in this Section 3(a)(ii) are taxable to the Executive and are not exempt from
Section 409A, the following provisions shall apply to the reimbursement or provision of such
benefits. The Executive shall be eligible for reimbursement for covered welfare expenses, or for
the provision of such benefits on an in-kind basis, during the period commencing on Executive’s
Date of Termination and ending on the third anniversary of such date. The amount of such welfare
benefit expenses eligible for reimbursement or the in-kind benefits provided under this Section
3(a)(ii), during the Executive’s taxable year will not affect the expenses eligible for
reimbursement, or the benefits to be provided, in any other taxable year (with the exception of
applicable lifetime maximums applicable to medical expenses or medical benefits described in
Section 105(b) of the Code). The Executive’s right to reimbursement or direct provision of
benefits under this Section 3(a)(ii) is not subject to liquidation or exchange for another benefit.
To the extent that the benefits provided to the Executive pursuant to this Section 3(a)(ii) are
taxable to the Executive and are not otherwise exempt from Section 409A, any reimbursement amounts
to which the Executive would otherwise be entitled under this Section 3(a)(ii) during the first six
months following the date of the Executive’s Separation From Service shall be accumulated and paid
to the Executive on the date that is six months following the date of his Separation From Service.
All reimbursements by the Company under this Section 3(a)(ii) shall be paid no later than the
earlier of (i) the time periods described above and (ii) the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred.

          (iii) All benefits and amounts under the Company’s deferred compensation plan and all other
benefit plans (except as specifically provided for in Section 4(b) below), not already vested shall
become immediately one hundred percent (100%) vested as of the Date of Termination. All options to
acquire common shares of the Parent, all restricted common shares of the Parent, and all share
appreciation rights the value of which is determined by reference to or based upon the value of
common shares of the Parent, held by the Executive under any plan of the Company or its affiliated
companies shall become immediately vested, exercisable and nonforfeitable. The effect, if any, of
a Change of Control on any other equity incentives and other awards the value of which is
determined by reference to

 - 7 - 

 

or based upon the value of common shares of the Parent shall be determined in accordance with
the terms of the applicable award agreement.

          (iv) The Company shall, at its sole expense as incurred, provide the Executive with reasonable
outplacement services from a provider selected by the Executive in his sole discretion. The
Company shall directly pay the provider the fees for such outplacement services. The period during
which such outplacement services shall be provided to the Executive at the expense of the Company
shall not extend beyond the last day of the second taxable year of the Executive following the
taxable year of the Executive during which he incurs a Separation From Service.

          (v) At the time specified in clause (x) below, ownership of all country club memberships,
luncheon clubs and other memberships which the Company was providing for the Executive’s or his
family’s use prior to the time that the Notice of Termination is given shall be transferred and
assigned to the Executive at no cost to the Executive (other than ordinary income taxes owed), the
cost of transfer, if any, to be borne by the Company.

          (vi) At the time specified in clause (x) below, the Company shall pay the Executive a lump sum
in cash equal to the Executive’s annual car allowance multiplied by two (2).

          (vii) To the extent not already paid or provided, the Company shall timely pay or provide to
the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (collectively, the “Other Benefits”).

          (viii) If the Executive’s employment is terminated by reason of the Executive’s death, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and its affiliated companies to the estates and
beneficiaries of the executive officers of the Company and such affiliated companies under such
plans, programs, practices and policies relating to death benefits, if any, in effect on the date
hereof or, if more favorable, those in effect on the date of the Executive’s death.

          (ix) If the Executive’s employment is terminated by reason of the Executive’s Disability, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive shall be entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive’s disabled peer executive officers and/or their families in
accordance with such plans, programs, practices and policies relating to disability, if any, in
effect generally on the date hereof or, if more favorable, those in effect at the time of the
Disability.

          (x) The Company shall pay or provide to the Executive the amounts or benefits specified in
Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E), and Sections 3(a)(v) and
3(a)(vi) 30 days following the date of the Executive’s Separation From Service if he is not a
Specified Employee on the date of his Separation From Service or on the date that is six months
following the date of his Separation From Service if he is a Specified Employee.

          (xi) If the Executive is a Specified Employee, on the date that is six months following the
Executive’s Separation From Service, the Company shall pay to the Executive, in addition to the
amounts reflected in clause (x), an amount equal to the interest that would be earned on the
amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) and, to
the extent subject to a mandatory six-month delay in payment, all amounts payable under the ERP and
the SRP, for the

 - 8 - 

 

period commencing on the date of the Executive’s Separation From Service until the date of
payment of such amounts, calculated using an interest rate of five percent per annum (the “Interest
Amount”).

          (xii) Notwithstanding any other provision of this Agreement to the contrary, the amount of the
payment under each of Sections 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) shall not exceed
the amount that would have been paid to the Executive had his Date of Termination occurred on
December 31, 2008.

     (b) Cause. If the Executive’s employment is terminated for Cause during the Employment Period
and prior to the expiration of the Term of the Agreement, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination for periods following his Separation From
Service on the date that is 30 days following the date of the Employee’s Separation From Service if
he is not a Specified Employee or on the date that is six months following the date of his
Separation From Service if he is a Specified Employee, and (y) Other Benefits, to the extent
theretofore unpaid.

     (c) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period and prior to the expiration of the Term of
the Agreement for any reason other than for Good Reason, the Executive’s employment shall terminate
without further obligations to the Executive, other than (x) the obligation to pay to the Executive
his Annual Base Salary through the Date of Termination for periods following his Separation From
Service, (y) Other Benefits and (z) the rights provided in Section 4. The Company shall pay to the
Executive the amount specified in clause (x) on the date that is 30 days following the date of the
Employee’s Separation From Service if he is not a Specified Employee or on the date that is six
months following the date of his Separation From Service if he is a Specified Employee.

4. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any plan,
contract or agreement with the Company or any of its affiliated companies. Except as otherwise
expressly provided herein, amounts which are vested benefits, which vest according to the terms of
this Agreement or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies prior to, at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice, program, contract or agreement. If any severance payments are
required to be paid to the Executive in conjunction with severance of employment under federal,
state or local law, the severance payments paid to the Executive under this Agreement will be
deemed to be in satisfaction of any such statutorily required benefit obligations to the extent
that doing so would not result in an acceleration of payment of nonqualified deferred compensation
that is prohibited under Section 409A.

     (b) Solely with respect to the ERP and the SRP, if the Executive’s employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has occurred or is
pending, any ERP or SRP benefits payable shall only be those that are payable, if any, under the
terms of the ERP or SRP as of the Date of Termination.

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5. Full Settlement.

     (a) No Rights of Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.

     (b) No Mitigation Required. The Company agrees that, if the Executive’s employment with the
Company terminates, the Executive is not required to seek other employment or to attempt in any way
to reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as specified in Section 3(a)(ii), the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

     (c) Legal Fees. The Company agrees to pay promptly as incurred, to the full extent permitted
by law, all legal fees and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or the Employment Agreement
or any guarantee of performance thereto (including as a result of any contest by the Executive
about the amount of any payment pursuant to this Agreement or the Employment Agreement). The legal
fees or expenses that are subject to reimbursement pursuant to this Section 5(c) shall not be
limited as a result of when the fees or expenses are incurred. The amount of legal fees or
expenses that is eligible for reimbursement pursuant to this Section 5(c) during a given taxable
year of the Executive shall not affect the amount of expenses eligible for reimbursement in any
other taxable year of the Executive. The right to reimbursement pursuant to this Section 5(c) is
not subject to liquidation or exchange for another benefit. Any amount to which the Executive is
entitled to reimbursement under this Section 5(c) during the first six months following the date of
the Executive’s Separation From Service shall be accumulated and paid to the Executive on the date
that is six months following the date of his Separation From Service. All reimbursements by the
Company under this Section 5(c) shall be paid no later than the earlier of (i) the time periods
described above and (ii) the last day of the Executive’s taxable year next following the taxable
year in which the expense was incurred.

6. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution by the Parent, the Company or any of their affiliated companies to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement, any other plan, agreement or contract or otherwise, but determined
without regard to any additional payments required under this Section 6) (a “Payment”) would be
subject to any additional tax or excise tax imposed by sections 409A, 457A or 4999 of the Code (and
any successor provisions or sections to sections 409A, 457A and 4999) or any interest or penalties
are incurred by the Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to promptly receive from the Company an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Any Gross Up Payment shall be made by the Company at least
10 days prior to the date that the Executive is required to remit to the relevant taxing authority
any federal, state and local taxes imposed upon the Executive, including the amount of

 - 10 - 

 

additional taxes imposed upon the Executive due to the Company’s payment of the initial taxes
on such amounts. Notwithstanding any provision of this Agreement to the contrary, any amounts to
which the Executive would otherwise be entitled under this Section 6(a) during the first six months
following the date of the Executive’s Separation From Service shall be accumulated and paid to the
Executive on the date that is six months following the date of his Separation From Service. All
reimbursements by the Company under this Section 6(a) be paid no later than the earlier of (i) the
time periods described above and (ii) the last day of the Executive’s taxable year next following
the taxable year in which the expense was incurred.

     (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public accounting firm as may
be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to the Executive within five
(5) days after the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm, absent manifest error, shall be binding upon the Company and the Executive,
subject to the last sentence of Section 6(a), and in no event later than the payment deadline
specified in Section 6(a). As a result of the uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive, subject to the last sentence of Section 6(a), and in no event
later than the payment deadline specified in Section 6(a).

     (c) The Executive shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification shall be given as
soon as practicable, but no later than ten business days after the Executive is informed in writing
of such claim, and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30)-day period following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If
the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

          (i) give the Company any information reasonably requested by the Company relating to such
claim,

          (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

 - 11 - 

 

          (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to such claims; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred at any time during the period that ends ten years following the
lifetime of the Executive in connection with such proceedings and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. The Company shall not direct the Executive to pay
such a claim and sue for a refund if, due to the prohibitions of section 402 of the Sarbanes-Oxley
Act of 2002, the Company may not advance to the Executive the amount necessary to pay such claim.
All such costs and expenses shall be made by the Company at least 10 days prior to the date that
the Executive is required to pay or incur such costs and expenses. The costs and expenses that are
subject to be paid by the Company pursuant to this Section 6(c) shall not be limited as a result of
when the costs or expenses are incurred. The amounts of costs or expenses that are eligible for
payment pursuant to this Section 6(c)(iv) during a given taxable year of the Executive shall not
affect the amount of costs or expenses eligible for payment in any other taxable year of the
Executive. The right to payment of costs and expenses pursuant to this Section 6(c)(iv) is not
subject to liquidation or exchange for another benefit. Notwithstanding any provision of this
Agreement to the contrary, any amounts to which the Executive would otherwise be entitled under
this Section 6(c)(iv) during the first six months following the date of the Employee’s Separation
From Service shall be accumulated and paid to the Executive on the date that is six months
following the date of his Separation From Service. All reimbursements by the Company under this
Section 6(c)(iv) shall be paid no later than the earlier of (i) the time periods described above
and (ii) the last day of the Executive’s taxable year next following the taxable year in which the
expense was incurred.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall not be required to be repaid.

 - 12 - 

 

     (e) Any provision in this Agreement or any other plan or agreement to the contrary
notwithstanding, if the Company is required to pay a Gross-Up Payment pursuant to the provisions of
this Agreement and pursuant to the provisions of another plan or agreement, then the Company shall
pay the total of the amounts determined pursuant to this Agreement and the provisions of such other
plan or agreement.

7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement), information that is developed by the Executive independently of such information,
or knowledge or data or information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

8. Disputed Payments And Failures To Pay. If the Company fails to make a payment under
this Agreement in whole or in part as of the payment date specified in this Agreement, either
intentionally or unintentionally, other than with the consent of the Employee, the Company shall
owe the Employee interest on the delayed payment at the applicable Federal rate provided for in
section 7872(f)(2)(A) of the Code if the Employee (i) accepts the portion (if any) of the payment
that the Company is willing to make (unless such acceptance will result in a relinquishment of the
claim to all or part of the remaining amount) and (ii) makes prompt and reasonable good faith
efforts to collect the remaining portion of the payment. Any such interest payments shall become
due and payable effective as of the applicable payment date(s) specified in Section 3 with respect
to the delinquent payment(s) due under Section 3.

9. Funding. The Executive shall have no right, title, or interest whatsoever in or to any
assets of the Company or any investments which the Company may make to aid it in meeting its
obligations under this Agreement. The Executive’s right to receive payments under this Agreement
shall be no greater than the right of an unsecured general creditor of the Company. Immediately
prior to a Change in Control, the Company shall create an irrevocable grantor trust (the “Rabbi
Trust”) which shall be subject to the claims of creditors of the Company. In the event that the
Executive is a Specified Employee at the time he incurs a Separation From Service or at the time
the Company determines that it is reasonably likely that the Executive will incur a Separation From
Service in connection with a Change in Control, then immediately upon the Executive’s Separation
From Service or, if earlier, the date on which the Company makes a determination that the Executive
is reasonably likely to incur a Separation From Services in connection with a Change in Control,
the Company shall transfer to the Rabbi Trust cash sufficient (on an undiscounted basis) to pay the
cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E),
the estimated amount of the Gross-Up Payment to be made under Section 6 and the Interest Amount.
The cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and
3(a)(i)(E), the Gross-Up Payment and the Interest Amount shall be paid from the Rabbi Trust on the
dates specified in Sections 3 and 6 herein, provided that the Company shall remain liable to pay
any all amounts which for any reason are not paid from the Rabbi Trust. The trustee of the Rabbi
Trust shall be a bank or trust company selected by the Company and approved by the Executive (in
his sole discretion) prior to the Change in Control.

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10. Successors.

     (a) This Agreement is personal to the Executive and shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation,
amalgamation, scheme of arrangement, exchange offer, operation of law or otherwise (including any
purchase, merger, amalgamation, Corporate Transaction or other transaction involving the Parent,
Company or any subsidiary or Affiliate of the Company), to all or substantially all of the
Company’s or Parent’s business and/or the Parent’s Assets or the Company’s assets to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change of
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as provided above.

11. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	If to the Executive:

	 	M. David Colley
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 
	 	 
	If to the Company:

	 	Weatherford International, Inc.
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 

	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

 - 14 - 

 

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right to the Executive or the Company may
have hereunder, including without limitation, the right of the Executive to terminate employment
for Good Reason shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

     (f) This Agreement constitutes the entire agreement and understanding between the parties
relating to the subject matter hereof and supersedes all prior agreements between the parties
relating to the subject matter hereof, including, without limitation, the Prior Agreements.

     (g) Notwithstanding any other provision of this Agreement, no benefits or payments hereunder
shall be provided or paid following December 31, 2010.

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     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 
	 

	 	 	 	    /s/ M. David Colley
	 	 	 	 	 
	 

	 	 	 	    M. David Colley
	 
	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL, INC.
	 
	 	 	 	 
	 

	 	By:
	 	    /s/ Bernard J. Duroc-Danner
	 

	 	 	 	 
	 

	 	 	 	   Bernard J. Duroc-Danner President

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EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of January 1, 2009 (the
“Effective Date”), by and between Weatherford International, Inc., a Delaware corporation (the
“Company”), and Bernard J. Duroc-Danner (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Company has determined that it is in the interest of the Company and the
shareholders of Weatherford International Ltd. for the Company to commit to provide certain
severance benefits to the Executive in the event of his termination of employment under certain
conditions;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree:

1. Certain Definitions.

     (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (b) “Annual Base Salary” shall have the meaning specified in the Employment Agreement.

     (c) “Annual Bonus” shall mean the Executive’s annual bonus under the annual incentive plan of
the Company and any of its Affiliates.

     (d) “Annual Bonus Amount” shall mean the sum of (a) the amount of the Annual Bonus, if any,
paid or provided in any form (whether in cash, securities or any combination thereof) by the
Company or any of its Affiliates to or for the benefit of the Executive for services rendered or
labor performed during a fiscal year of the Company and (b) the amount of the discretionary bonus
or other bonus paid outside of the Company’s annual incentive plan, if any, paid or provided in any
form (whether in cash, securities or any combination thereof) by the Company or any of its
Affiliates to or for the benefit of the Employee (it being understood that if multiple bonuses are
paid for any given year, or if a bonus is made in multiple installments for a year, all such
bonuses or installments shall be aggregated as a single payment for that year in determining the
Annual Bonus Amount). The Executive’s Annual Bonus Amount shall be determined by including any
portion thereof that the Executive could have received in cash or securities in lieu of (i) any
elective deferrals made by the Executive pursuant to all nonqualified deferred compensation plans
or (ii) elective contributions made on the Executive’s behalf by the Company pursuant to a
qualified cash or deferred arrangement (as defined in section 401(k) of the Code) or pursuant to a
plan maintained under section 125 of the Code.

     (e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

     (f) “Board” shall mean the Board of Directors of the Parent.

     (g) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’s duties with the Parent or the Company (other than any such failure resulting from
incapacity due to physical or mental illness or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 4(d) of the Employment
Agreement), after a written

 - 1 - 

 

demand for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially performed the
Executive’s duties, or

          (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Parent or the Company.

     No act, or failure to act, on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the Parent or the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more senior officer of the
Company or based upon the advice of counsel for the Parent (which may be the General Counsel or
other counsel employed by the Parent or its subsidiaries) shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best interests of the Parent
or the Company. The cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive, and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

     (h) “Change of Control” shall be deemed to have occurred if any event set forth in any one of
the following paragraphs shall have occurred:

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Parent (the “Outstanding
Parent Common Shares”) or (B) the combined voting power of the then outstanding voting securities
of the Parent entitled to vote generally in the election of directors (the “Outstanding Parent
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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Parent’s shareholders, was approved by a vote of at least two-thirds (2/3) 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 any 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, scheme of
arrangement, exchange offer or similar transaction of the Parent or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the Parent’s Assets (any of
which 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 (which, for
purposes of this Agreement, shall include, without limitation, any corporation, partnership,
association, joint-stock company, limited liability company, trust, unincorporated organization or
other business entity) who were the beneficial owners, respectively, of the Outstanding Parent
Common Shares and Outstanding Parent Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than sixty-six and two-thirds percent
(66-2/3%) of, respectively, the then outstanding

 - 2 - 

 

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 Parent or all or substantially all of the Parent’s
Assets either directly or through one (1) or more subsidiaries or entities) in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Parent Common Shares and the Outstanding Parent 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 Parent or such entity resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock 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 (2/3) 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

          (iv) Approval or adoption by the Board of Directors or the shareholders of the Parent 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 Parent’s Assets or the dissolution of the Parent.

     (i) “Disability” shall mean the absence of the Executive from performance of the Executive’s
duties with the Parent on a substantial basis for one hundred twenty (120) calendar days as a
result of incapacity due to mental or physical illness.

     (j) “Employment Agreement” shall mean the Executive’s employment agreement with the Parent, as
it may be amended from time to time.

     (k) “Employment Period” shall have the meaning specified in the Employment Agreement.

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

     (m) “ERP” shall mean the Weatherford International Ltd. Nonqualified Executive Retirement
Plan, as it may be amended from time to time.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (o) “Good Reason” shall mean the occurrence of any of the following:

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of the
Employment Agreement, or any other action by the Parent or the Company which results in a
diminution in such position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Parent or the Company promptly after receipt of notice thereof given by the Executive;

          (ii) any failure by the Parent or the Company to comply with any of the provisions of this
Agreement or the Employment Agreement (including, without limitation, its obligations under Section
3(a) of the Employment Agreement), other than an isolated, insubstantial and inadvertent failure

 - 3 - 

 

not occurring in bad faith and which is remedied by the Parent or the Company promptly after
receipt of notice thereof given by the Executive;

          (iii) any failure by the Parent or the Company to continue to provide the Executive with
benefits currently enjoyed by the Executive under any of the Parent’s and the Company’s
compensation, bonus, retirement, pension, savings, life insurance, medical, health and accident, or
disability plans, or the taking of any other action by the Parent or the Company which would
directly or indirectly reduce any of such benefits or deprive the Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

          (iv) the Parent’s or the Company’s requiring the Executive to be based at any office or
location other than as provided in Section 3(a)(i) of the Employment Agreement or the Parent’s or
the Company’s requiring the Executive to travel on business to a substantially greater extent than
required immediately prior to the date hereof;

          (v) any purported termination by the Parent or the Company of the Executive’s employment
(including, without limitation, any secondment of the Executive without the Executive’s prior
express agreement in writing);

          (vi) any failure by the Parent to comply with and satisfy Section 10(b) of the Employment
Agreement;

          (vii) failure by the Parent (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive prior to the
termination or expiration of this Agreement, with such employment agreement and executive
retirement plan having the same terms and conditions as existed in agreements and plans between the
Parent or the Company and the Executive prior to December 30, 2008, and incorporating such terms
and conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

          (viii) in connection with, as a result of or following a Change of Control, the giving of
notice to the Executive that the Employment Period shall not be extended.

     In the event of a Change of Control or other Corporate Transaction in which the Parent’s
common shares may cease to be publicly traded, following the Change of Control or the consummation
of such other Corporate Transaction, “Good Reason” shall be deemed to exist upon the occurrence of
any of the events listed in clauses (i) through (vii) above and also in the event Executive is
assigned to any position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities that are (A) not at or with the publicly-traded ultimate parent company
of the successor to the Parent or the corporation or other entity surviving or resulting from such
Corporate Transaction or (B) inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 3(a) of the Employment Agreement.

     For purposes of this Agreement, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

     (p) “IRS” shall mean the Internal Revenue Service.

     (q) “Parent” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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     (r) “Parent’s Assets” shall mean the assets (of any kind) owned by the Parent, including,
without limitation, the securities of the Parent’s Subsidiaries and any of the assets owned by the
Parent’s Subsidiaries.

     (s) “Person” shall have the meaning given 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
Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Parent or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering by the Parent of such securities, or (iv) a corporation
or other entity owned, directly or indirectly, by the shareholders of the Parent in the same
proportions as their ownership of common shares of the Parent.

     (t) “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended
and the final Department of Treasury regulations issued thereunder.

     (u) “Separation From Service” shall have the meaning ascribed to such term in Section 409A.

     (v) “Specified Employee” shall have the meaning ascribed to such term in Section 409A.

     (w) “SRP” shall mean the Weatherford International, Inc. Supplemental Retirement Plan, as it
may be amended from time to time.

     (x) “Subsidiary” shall mean any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for the purposes of this Agreement.

     (y) “Term of the Agreement” shall mean the period commencing on January 1, 2009 and ending on
December 31, 2009.

2. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Parent determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with the Employment Agreement of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Parent shall terminate
effective thirty (30) days after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that within the thirty (30)-day period after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties. In addition, if a physician
selected by the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in accordance with
the Employment Agreement of the Executive’s intention to terminate his employment. In such event,
the Disability Effective Date shall be thirty (30) days after receipt of such notice by the
Company.

     (b) Cause. The Parent may terminate the Executive’s employment during the Employment Period
for Cause.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive at any time
during the Employment Period for Good Reason.

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     (d) Notice of Termination. Any termination during the Employment Period shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement or the Employment Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date, in the case of a notice
by the Company, shall be not more than 30 days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” shall mean:

          (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be;

          (ii) if the Executive’s employment is terminated by the Company or the Parent other than for
Cause, the Date of Termination shall be the date on which the Executive receives notice of such
termination; and

          (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability Effective Date, as the
case may be.

3. Obligations of the Company Upon Termination.

     (a) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period
and prior to the expiration of the Term of the Agreement, the Executive’s employment is terminated
by reason of the Executive’s death or Disability, by the Parent or the Company for any reason other
than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable), at the times specified in clause (x), the following amounts:

               (A) an amount equal to the Executive’s Annual Base Salary through the Date of Termination for
periods following his Separation From Service to the extent not theretofore paid;

               (B) an amount equal to the product of (x) the higher of (I) the highest Annual Bonus Amount
for the preceding five (5) calendar years and (II) the Annual Bonus Amount that would be payable in
respect of the current fiscal year (and annualized for any fiscal year consisting of less than
twelve (12) months) (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is three hundred sixty-five (365);

               (C) an amount equal to three times the sum of (i) the highest Annual Base Salary received by
the Executive in the last five (5) years ended prior to the Termination Date and (ii) the Highest
Annual Bonus;

 - 6 - 

 

               (D) an amount equal to three times the sum of (i) the total of the employer basic and matching
contributions credited to the Executive under the Company’s 401(k) Savings Plan (the “401(k) Plan”)
during the twelve (12)-month period immediately preceding the month of the Executive’s Date of
Termination, and (ii) the amount that would have been credited and contributed to the Executive and
his accounts under all other deferred compensation plans (excluding the ERP and the SRP) using the
amounts specified in clauses (i) and (ii) of Section 3(a)(i)(C), such total amount to be grossed up
so that the amount the Executive actually receives after payment of any federal or state taxes
payable thereon equals the amount first described above; and

               (E) the total value of all fringe benefits received by the Executive on an annualized basis
multiplied by three (3).

          (ii) For a period of three (3) years from the Executive’s Date of Termination, or such longer
period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and the Executive’s family equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3(b)(iv) of the Employment Agreement if the Executive’s employment had not
been terminated; provided, however, that with respect to any of such plans, programs, practices or
policies requiring an employee contribution, the Executive (or Executive’s heirs or beneficiaries
as applicable) shall continue to pay the monthly employee contribution for same, and provided
further, that if the Executive becomes re-employed by another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If any of the dental, accident, health insurance or other
benefits specified in this Section 3(a)(ii) are taxable to the Executive and are not exempt from
Section 409A, the following provisions shall apply to the reimbursement or provision of such
benefits. The Executive shall be eligible for reimbursement for covered welfare expenses, or for
the provision of such benefits on an in-kind basis, during the period commencing on Executive’s
Date of Termination and ending on the third anniversary of such date. The amount of such welfare
benefit expenses eligible for reimbursement or the in-kind benefits provided under this Section
3(a)(ii), during the Executive’s taxable year will not affect the expenses eligible for
reimbursement, or the benefits to be provided, in any other taxable year (with the exception of
applicable lifetime maximums applicable to medical expenses or medical benefits described in
Section 105(b) of the Code). The Executive’s right to reimbursement or direct provision of
benefits under this Section 3(a)(ii) is not subject to liquidation or exchange for another benefit.
To the extent that the benefits provided to the Executive pursuant to this Section 3(a)(ii) are
taxable to the Executive and are not otherwise exempt from Section 409A, any reimbursement amounts
to which the Executive would otherwise be entitled under this Section 3(a)(ii) during the first six
months following the date of the Executive’s Separation From Service shall be accumulated and paid
to the Executive on the date that is six months following the date of his Separation From Service.
All reimbursements by the Company under this Section 3(a)(ii) shall be paid no later than the
earlier of (i) the time periods described above and (ii) the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred.

          (iii) All benefits and amounts under the Company’s deferred compensation plan and all other
benefit plans (except as specifically provided for in Section 4(b) below), not already vested shall
become immediately one hundred percent (100%) vested as of the Date of Termination. All options to
acquire common shares of the Parent, all restricted common shares of the Parent, and all share
appreciation rights the value of which is determined by reference to or based upon the value of
common shares of the Parent, held by the Executive under any plan of the Company or its affiliated
companies shall become immediately vested, exercisable and nonforfeitable. The effect, if any, of
a Change of Control on any other equity incentives and other awards the value of which is
determined by reference to

 - 7 - 

 

or based upon the value of common shares of the Parent shall be determined in accordance with
the terms of the applicable award agreement.

          (iv) The Company shall, at its sole expense as incurred, provide the Executive with reasonable
outplacement services from a provider selected by the Executive in his sole discretion. The
Company shall directly pay the provider the fees for such outplacement services. The period during
which such outplacement services shall be provided to the Executive at the expense of the Company
shall not extend beyond the last day of the second taxable year of the Executive following the
taxable year of the Executive during which he incurs a Separation From Service.

          (v) At the time specified in clause (x) below, ownership of all country club memberships,
luncheon clubs and other memberships which the Company was providing for the Executive’s or his
family’s use prior to the time that the Notice of Termination is given shall be transferred and
assigned to the Executive at no cost to the Executive (other than ordinary income taxes owed), the
cost of transfer, if any, to be borne by the Company.

          (vi) At the time specified in clause (x) below, the Company shall either transfer to the
Executive ownership and title to the Executive’s company car at no cost (other than ordinary income
taxes owed by the Executive) to the Executive or, if the Executive receives a monthly car allowance
in lieu of a Company car, pay the Executive a lump sum in cash equal to the Executive’s annual car
allowance multiplied by three (3).

          (vii) To the extent not already paid or provided, the Company shall timely pay or provide to
the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (collectively, the “Other Benefits”).

          (viii) If the Executive’s employment is terminated by reason of the Executive’s death, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and its affiliated companies to the estates and
beneficiaries of the executive officers of the Company and such affiliated companies under such
plans, programs, practices and policies relating to death benefits, if any, in effect on the date
hereof or, if more favorable, those in effect on the date of the Executive’s death.

          (ix) If the Executive’s employment is terminated by reason of the Executive’s Disability, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive shall be entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive’s disabled peer executive officers and/or their families in
accordance with such plans, programs, practices and policies relating to disability, if any, in
effect generally on the date hereof or, if more favorable, those in effect at the time of the
Disability.

          (x) The Company shall pay or provide to the Executive the amounts or benefits specified in
Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E), and Sections 3(a)(v) and
3(a)(vi) 30 days following the date of the Executive’s Separation From Service if he is not a
Specified Employee on the date of his Separation From Service or on the date that is six months
following the date of his Separation From Service if he is a Specified Employee.

          (xi) If the Executive is a Specified Employee, on the date that is six months following the
Executive’s Separation From Service, the Company shall pay to the Executive, in addition to the

 - 8 - 

 

amounts reflected in clause (x), an amount equal to the interest that would be earned on the
amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) and, to
the extent subject to a mandatory six-month delay in payment, all amounts payable under the ERP and
the SRP, for the period commencing on the date of the Executive’s Separation From Service until the
date of payment of such amounts, calculated using an interest rate of five percent per annum (the
“Interest Amount”).

          (xii) Notwithstanding any other provision of this Agreement to the contrary, the amount of the
payment under each of Sections 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) shall not exceed
the amount that would have been paid to the Executive had his Date of Termination occurred on
December 31, 2008.

     (b) Cause. If the Executive’s employment is terminated for Cause during the Employment Period
and prior to the expiration of the Term of the Agreement, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination for periods following his Separation From
Service on the date that is 30 days following the date of the Employee’s Separation From Service if
he is not a Specified Employee or on the date that is six months following the date of his
Separation From Service if he is a Specified Employee, and (y) Other Benefits, to the extent
theretofore unpaid.

     (c) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period and prior to the expiration of the Term of
the Agreement for any reason other than for Good Reason, the Executive’s employment shall terminate
without further obligations to the Executive, other than (x) the obligation to pay to the Executive
his Annual Base Salary through the Date of Termination for periods following his Separation From
Service, (y) Other Benefits and (z) the rights provided in Section 4. The Company shall pay to the
Executive the amount specified in clause (x) on the date that is 30 days following the date of the
Employee’s Separation From Service if he is not a Specified Employee or on the date that is six
months following the date of his Separation From Service if he is a Specified Employee.

4. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any plan,
contract or agreement with the Company or any of its affiliated companies. Except as otherwise
expressly provided herein, amounts which are vested benefits, which vest according to the terms of
this Agreement or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies prior to, at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice, program, contract or agreement. If any severance payments are
required to be paid to the Executive in conjunction with severance of employment under federal,
state or local law, the severance payments paid to the Executive under this Agreement will be
deemed to be in satisfaction of any such statutorily required benefit obligations to the extent
that doing so would not result in an acceleration of payment of nonqualified deferred compensation
that is prohibited under Section 409A.

     (b) Solely with respect to the ERP and the SRP, if the Executive’s employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has occurred or is
pending, any ERP or SRP benefits payable shall only be those that are payable, if any, under the
terms of the ERP or SRP as of the Date of Termination.

 - 9 - 

 

5. Full Settlement.

     (a) No Rights of Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.

     (b) No Mitigation Required. The Company agrees that, if the Executive’s employment with the
Company terminates, the Executive is not required to seek other employment or to attempt in any way
to reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as specified in Section 3(a)(ii), the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

     (c) Legal Fees. The Company agrees to pay promptly as incurred, to the full extent permitted
by law, all legal fees and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or the Employment Agreement
or any guarantee of performance thereto (including as a result of any contest by the Executive
about the amount of any payment pursuant to this Agreement or the Employment Agreement). The legal
fees or expenses that are subject to reimbursement pursuant to this Section 5(c) shall not be
limited as a result of when the fees or expenses are incurred. The amount of legal fees or
expenses that is eligible for reimbursement pursuant to this Section 5(c) during a given taxable
year of the Executive shall not affect the amount of expenses eligible for reimbursement in any
other taxable year of the Executive. The right to reimbursement pursuant to this Section 5(c) is
not subject to liquidation or exchange for another benefit. Any amount to which the Executive is
entitled to reimbursement under this Section 5(c) during the first six months following the date of
the Executive’s Separation From Service shall be accumulated and paid to the Executive on the date
that is six months following the date of his Separation From Service. All reimbursements by the
Company under this Section 5(c) shall be paid no later than the earlier of (i) the time periods
described above and (ii) the last day of the Executive’s taxable year next following the taxable
year in which the expense was incurred.

6. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution by the Parent, the Company or any of their affiliated companies to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement, any other plan, agreement or contract or otherwise, but determined
without regard to any additional payments required under this Section 6) (a “Payment”) would be
subject to any additional tax or excise tax imposed by sections 409A, 457A or 4999 of the Code (and
any successor provisions or sections to sections 409A, 457A and 4999) or any interest or penalties
are incurred by the Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to promptly receive from the Company an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Any Gross Up Payment shall be made by the Company at least
10 days prior to the date that the Executive is required to remit to the relevant taxing authority
any federal, state and local taxes imposed upon the Executive, including the amount of

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additional taxes imposed upon the Executive due to the Company’s payment of the initial taxes
on such amounts. Notwithstanding any provision of this Agreement to the contrary, any amounts to
which the Executive would otherwise be entitled under this Section 6(a) during the first six months
following the date of the Executive’s Separation From Service shall be accumulated and paid to the
Executive on the date that is six months following the date of his Separation From Service. All
reimbursements by the Company under this Section 6(a) be paid no later than the earlier of (i) the
time periods described above and (ii) the last day of the Executive’s taxable year next following
the taxable year in which the expense was incurred.

     (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public accounting firm as may
be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to the Executive within five
(5) days after the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm, absent manifest error, shall be binding upon the Company and the Executive,
subject to the last sentence of Section 6(a), and in no event later than the payment deadline
specified in Section 6(a). As a result of the uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive, subject to the last sentence of Section 6(a), and in no event
later than the payment deadline specified in Section 6(a).

     (c) The Executive shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification shall be given as
soon as practicable, but no later than ten business days after the Executive is informed in writing
of such claim, and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30)-day period following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If
the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

          (i) give the Company any information reasonably requested by the Company relating to such
claim,

          (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

 - 11 - 

 

          (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to such claims; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred at any time during the period that ends ten years following the
lifetime of the Executive in connection with such proceedings and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. The Company shall not direct the Executive to pay
such a claim and sue for a refund if, due to the prohibitions of section 402 of the Sarbanes-Oxley
Act of 2002, the Company may not advance to the Executive the amount necessary to pay such claim.
All such costs and expenses shall be made by the Company at least 10 days prior to the date that
the Executive is required to pay or incur such costs and expenses. The costs and expenses that are
subject to be paid by the Company pursuant to this Section 6(c) shall not be limited as a result of
when the costs or expenses are incurred. The amounts of costs or expenses that are eligible for
payment pursuant to this Section 6(c)(iv) during a given taxable year of the Executive shall not
affect the amount of costs or expenses eligible for payment in any other taxable year of the
Executive. The right to payment of costs and expenses pursuant to this Section 6(c)(iv) is not
subject to liquidation or exchange for another benefit. Notwithstanding any provision of this
Agreement to the contrary, any amounts to which the Executive would otherwise be entitled under
this Section 6(c)(iv) during the first six months following the date of the Employee’s Separation
From Service shall be accumulated and paid to the Executive on the date that is six months
following the date of his Separation From Service. All reimbursements by the Company under this
Section 6(c)(iv) shall be paid no later than the earlier of (i) the time periods described above
and (ii) the last day of the Executive’s taxable year next following the taxable year in which the
expense was incurred.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall not be required to be repaid.

 - 12 - 

 

     (e) Any provision in this Agreement or any other plan or agreement to the contrary
notwithstanding, if the Company is required to pay a Gross-Up Payment pursuant to the provisions of
this Agreement and pursuant to the provisions of another plan or agreement, then the Company shall
pay the total of the amounts determined pursuant to this Agreement and the provisions of such other
plan or agreement.

7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement), information that is developed by the Executive independently of such information,
or knowledge or data or information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

8. Disputed Payments And Failures To Pay. If the Company fails to make a payment under
this Agreement in whole or in part as of the payment date specified in this Agreement, either
intentionally or unintentionally, other than with the consent of the Employee, the Company shall
owe the Employee interest on the delayed payment at the applicable Federal rate provided for in
section 7872(f)(2)(A) of the Code if the Employee (i) accepts the portion (if any) of the payment
that the Company is willing to make (unless such acceptance will result in a relinquishment of the
claim to all or part of the remaining amount) and (ii) makes prompt and reasonable good faith
efforts to collect the remaining portion of the payment. Any such interest payments shall become
due and payable effective as of the applicable payment date(s) specified in Section 3 with respect
to the delinquent payment(s) due under Section 3.

9. Funding. The Executive shall have no right, title, or interest whatsoever in or to any
assets of the Company or any investments which the Company may make to aid it in meeting its
obligations under this Agreement. The Executive’s right to receive payments under this Agreement
shall be no greater than the right of an unsecured general creditor of the Company. Immediately
prior to a Change in Control, the Company shall create an irrevocable grantor trust (the “Rabbi
Trust”) which shall be subject to the claims of creditors of the Company. In the event that the
Executive is a Specified Employee at the time he incurs a Separation From Service or at the time
the Company determines that it is reasonably likely that the Executive will incur a Separation From
Service in connection with a Change in Control, then immediately upon the Executive’s Separation
From Service or, if earlier, the date on which the Company makes a determination that the Executive
is reasonably likely to incur a Separation From Services in connection with a Change in Control,
the Company shall transfer to the Rabbi Trust cash sufficient (on an undiscounted basis) to pay the
cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E),
the estimated amount of the Gross-Up Payment to be made under Section 6 and the Interest Amount.
The cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and
3(a)(i)(E), the Gross-Up Payment and the Interest Amount shall be paid from the Rabbi Trust on the
dates specified in Sections 3 and 6 herein, provided that the Company shall remain liable to pay
any all amounts which for any reason are not paid from the Rabbi Trust. The trustee of the Rabbi
Trust shall be a bank or trust company selected by the Company and approved by the Executive (in
his sole discretion) prior to the Change in Control.

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10. Successors.

     (a) This Agreement is personal to the Executive and shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation,
amalgamation, scheme of arrangement, exchange offer, operation of law or otherwise (including any
purchase, merger, amalgamation, Corporate Transaction or other transaction involving the Parent,
Company or any subsidiary or Affiliate of the Company), to all or substantially all of the
Company’s or Parent’s business and/or the Parent’s Assets or the Company’s assets to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change of
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as provided above.

11. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	If to the Executive:

	 	Bernard J. Duroc-Danner
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 
	 	 
	If to the Company:

	 	Weatherford International, Inc.
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 

	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

 - 14 - 

 

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right to the Executive or the Company may
have hereunder, including without limitation, the right of the Executive to terminate employment
for Good Reason shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

     (f) This Agreement constitutes the entire agreement and understanding between the parties
relating to the subject matter hereof and supersedes all prior agreements between the parties
relating to the subject matter hereof, including, without limitation, the Prior Agreements.

     (g) Notwithstanding any other provision of this Agreement, no benefits or payments hereunder
shall be provided or paid following December 31, 2010.

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     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	     /s/ Bernard J. Duroc-Danner	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	     Bernard J. Duroc-Danner	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Burt M. Martin
 

     Burt M. Martin
	 	 
	 

	 	 	 	     Senior Vice President	 	 

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EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of January 1, 2009 (the
“Effective Date”), by and between Weatherford International, Inc., a Delaware corporation (the
“Company”), and Stuart E. Ferguson (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Company has determined that it is in the interest of the Company and the
shareholders of Weatherford International Ltd. for the Company to commit to provide certain
severance benefits to the Executive in the event of his termination of employment under certain
conditions;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree:

1. Certain Definitions.

     (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (b) “Annual Base Salary” shall have the meaning specified in the Employment Agreement.

     (c) “Annual Bonus” shall mean the Executive’s annual bonus under the annual incentive plan of
the Company and any of its Affiliates.

     (d) “Annual Bonus Amount” shall mean the sum of (a) the amount of the Annual Bonus, if any,
paid or provided in any form (whether in cash, securities or any combination thereof) by the
Company or any of its Affiliates to or for the benefit of the Executive for services rendered or
labor performed during a fiscal year of the Company and (b) the amount of the discretionary bonus
or other bonus paid outside of the Company’s annual incentive plan, if any, paid or provided in any
form (whether in cash, securities or any combination thereof) by the Company or any of its
Affiliates to or for the benefit of the Employee (it being understood that if multiple bonuses are
paid for any given year, or if a bonus is made in multiple installments for a year, all such
bonuses or installments shall be aggregated as a single payment for that year in determining the
Annual Bonus Amount). The Executive’s Annual Bonus Amount shall be determined by including any
portion thereof that the Executive could have received in cash or securities in lieu of (i) any
elective deferrals made by the Executive pursuant to all nonqualified deferred compensation plans
or (ii) elective contributions made on the Executive’s behalf by the Company pursuant to a
qualified cash or deferred arrangement (as defined in section 401(k) of the Code) or pursuant to a
plan maintained under section 125 of the Code.

     (e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

     (f) “Board” shall mean the Board of Directors of the Parent.

     (g) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’s duties with the Parent or the Company (other than any such failure resulting from
incapacity due to physical or mental illness or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 4(d) of the Employment
Agreement), after a written

 - 1 - 

 

demand for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially performed the
Executive’s duties, or

          (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Parent or the Company.

     No act, or failure to act, on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the Parent or the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more senior officer of the
Company or based upon the advice of counsel for the Parent (which may be the General Counsel or
other counsel employed by the Parent or its subsidiaries) shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best interests of the Parent
or the Company. The cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive, and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

     (h) “Change of Control” shall be deemed to have occurred if any event set forth in any one of
the following paragraphs shall have occurred:

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Parent (the “Outstanding
Parent Common Shares”) or (B) the combined voting power of the then outstanding voting securities
of the Parent entitled to vote generally in the election of directors (the “Outstanding Parent
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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Parent’s shareholders, was approved by a vote of at least two-thirds (2/3) 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 any 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, scheme of
arrangement, exchange offer or similar transaction of the Parent or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the Parent’s Assets (any of
which 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 (which, for
purposes of this Agreement, shall include, without limitation, any corporation, partnership,
association, joint-stock company, limited liability company, trust, unincorporated organization or
other business entity) who were the beneficial owners, respectively, of the Outstanding Parent
Common Shares and Outstanding Parent Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than sixty-six and two-thirds percent
(66-2/3%) of, respectively, the then outstanding

 - 2 - 

 

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 Parent or all or substantially all of the Parent’s
Assets either directly or through one (1) or more subsidiaries or entities) in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Parent Common Shares and the Outstanding Parent 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 Parent or such entity resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock 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 (2/3) 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

          (iv) Approval or adoption by the Board of Directors or the shareholders of the Parent 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 Parent’s Assets or the dissolution of the Parent.

     (i) “Disability” shall mean the absence of the Executive from performance of the Executive’s
duties with the Parent on a substantial basis for one hundred twenty (120) calendar days as a
result of incapacity due to mental or physical illness.

     (j) “Employment Agreement” shall mean the Executive’s employment agreement with the Parent, as
it may be amended from time to time.

     (k) “Employment Period” shall have the meaning specified in the Employment Agreement.

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

     (m) “ERP” shall mean the Weatherford International Ltd. Nonqualified Executive Retirement
Plan, as it may be amended from time to time.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (o) “Good Reason” shall mean the occurrence of any of the following:

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of the
Employment Agreement, or any other action by the Parent or the Company which results in a
diminution in such position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Parent or the Company promptly after receipt of notice thereof given by the Executive;

          (ii) any failure by the Parent or the Company to comply with any of the provisions of this
Agreement or the Employment Agreement (including, without limitation, its obligations under Section
3(a) of the Employment Agreement), other than an isolated, insubstantial and inadvertent failure

 - 3 - 

 

not occurring in bad faith and which is remedied by the Parent or the Company promptly after
receipt of notice thereof given by the Executive;

          (iii) any failure by the Parent or the Company to continue to provide the Executive with
benefits currently enjoyed by the Executive under any of the Parent’s and the Company’s
compensation, bonus, retirement, pension, savings, life insurance, medical, health and accident, or
disability plans, or the taking of any other action by the Parent or the Company which would
directly or indirectly reduce any of such benefits or deprive the Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

          (iv) the Parent’s or the Company’s requiring the Executive to be based at any office or
location other than as provided in Section 3(a)(i) of the Employment Agreement or the Parent’s or
the Company’s requiring the Executive to travel on business to a substantially greater extent than
required immediately prior to the date hereof;

          (v) any purported termination by the Parent or the Company of the Executive’s employment
(including, without limitation, any secondment of the Executive without the Executive’s prior
express agreement in writing);

          (vi) any failure by the Parent to comply with and satisfy Section 10(b) of the Employment
Agreement;

          (vii) failure by the Parent (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive prior to the
termination or expiration of this Agreement, with such employment agreement and executive
retirement plan having the same terms and conditions as existed in agreements and plans between the
Parent or the Company and the Executive prior to December 30, 2008, and incorporating such terms
and conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

          (viii) in connection with, as a result of or following a Change of Control, the giving of
notice to the Executive that the Employment Period shall not be extended.

     In the event of a Change of Control or other Corporate Transaction in which the Parent’s
common shares may cease to be publicly traded, following the Change of Control or the consummation
of such other Corporate Transaction, “Good Reason” shall be deemed to exist upon the occurrence of
any of the events listed in clauses (i) through (vii) above and also in the event Executive is
assigned to any position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities that are (A) not at or with the publicly-traded ultimate parent company
of the successor to the Parent or the corporation or other entity surviving or resulting from such
Corporate Transaction or (B) inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 3(a) of the Employment Agreement.

     For purposes of this Agreement, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

     (p) “IRS” shall mean the Internal Revenue Service.

     (q) “Parent” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

 - 4 - 

 

     (r) “Parent’s Assets” shall mean the assets (of any kind) owned by the Parent, including,
without limitation, the securities of the Parent’s Subsidiaries and any of the assets owned by the
Parent’s Subsidiaries.

     (s) “Person” shall have the meaning given 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
Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Parent or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering by the Parent of such securities, or (iv) a corporation
or other entity owned, directly or indirectly, by the shareholders of the Parent in the same
proportions as their ownership of common shares of the Parent.

     (t) “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended
and the final Department of Treasury regulations issued thereunder.

     (u) “Separation From Service” shall have the meaning ascribed to such term in Section 409A.

     (v) “Specified Employee” shall have the meaning ascribed to such term in Section 409A.

     (w) “SRP” shall mean the Weatherford International, Inc. Supplemental Retirement Plan, as it
may be amended from time to time.

     (x) “Subsidiary” shall mean any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for the purposes of this Agreement.

     (y) “Term of the Agreement” shall mean the period commencing on January 1, 2009 and ending on
December 31, 2009.

2. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Parent determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with the Employment Agreement of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Parent shall terminate
effective thirty (30) days after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that within the thirty (30)-day period after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties. In addition, if a physician
selected by the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in accordance with
the Employment Agreement of the Executive’s intention to terminate his employment. In such event,
the Disability Effective Date shall be thirty (30) days after receipt of such notice by the
Company.

     (b) Cause. The Parent may terminate the Executive’s employment during the Employment Period
for Cause.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive at any time
during the Employment Period for Good Reason.

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     (d) Notice of Termination. Any termination during the Employment Period shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement or the Employment Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date, in the case of a notice
by the Company, shall be not more than 30 days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” shall mean:

          (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be;

          (ii) if the Executive’s employment is terminated by the Company or the Parent other than for
Cause, the Date of Termination shall be the date on which the Executive receives notice of such
termination; and

          (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability Effective Date, as the
case may be.

3. Obligations of the Company Upon Termination.

     (a) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period
and prior to the expiration of the Term of the Agreement, the Executive’s employment is terminated
by reason of the Executive’s death or Disability, by the Parent or the Company for any reason other
than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable), at the times specified in clause (x), the following amounts:

               (A) an amount equal to the Executive’s Annual Base Salary through the Date of Termination for
periods following his Separation From Service to the extent not theretofore paid;

               (B) an amount equal to the product of (x) the higher of (I) the highest Annual Bonus Amount
for the preceding five (5) calendar years and (II) the Annual Bonus Amount that would be payable in
respect of the current fiscal year (and annualized for any fiscal year consisting of less than
twelve (12) months) (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is three hundred sixty-five (365);

               (C) an amount equal to three times the sum of (i) the highest Annual Base Salary received by
the Executive in the last five (5) years ended prior to the Termination Date and (ii) the Highest
Annual Bonus;

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               (D) an amount equal to three times the sum of (i) the total of the employer basic and matching
contributions credited to the Executive under the Company’s 401(k) Savings Plan (the “401(k) Plan”)
during the twelve (12)-month period immediately preceding the month of the Executive’s Date of
Termination, and (ii) the amount that would have been credited and contributed to the Executive and
his accounts under all other deferred compensation plans (excluding the ERP and the SRP) using the
amounts specified in clauses (i) and (ii) of Section 3(a)(i)(C), such total amount to be grossed up
so that the amount the Executive actually receives after payment of any federal or state taxes
payable thereon equals the amount first described above; and

               (E) the total value of all fringe benefits received by the Executive on an annualized basis
multiplied by three (3).

          (ii) For a period of three (3) years from the Executive’s Date of Termination, or such longer
period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and the Executive’s family equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3(b)(iv) of the Employment Agreement if the Executive’s employment had not
been terminated; provided, however, that with respect to any of such plans, programs, practices or
policies requiring an employee contribution, the Executive (or Executive’s heirs or beneficiaries
as applicable) shall continue to pay the monthly employee contribution for same, and provided
further, that if the Executive becomes re-employed by another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If any of the dental, accident, health insurance or other
benefits specified in this Section 3(a)(ii) are taxable to the Executive and are not exempt from
Section 409A, the following provisions shall apply to the reimbursement or provision of such
benefits. The Executive shall be eligible for reimbursement for covered welfare expenses, or for
the provision of such benefits on an in-kind basis, during the period commencing on Executive’s
Date of Termination and ending on the third anniversary of such date. The amount of such welfare
benefit expenses eligible for reimbursement or the in-kind benefits provided under this Section
3(a)(ii), during the Executive’s taxable year will not affect the expenses eligible for
reimbursement, or the benefits to be provided, in any other taxable year (with the exception of
applicable lifetime maximums applicable to medical expenses or medical benefits described in
Section 105(b) of the Code). The Executive’s right to reimbursement or direct provision of
benefits under this Section 3(a)(ii) is not subject to liquidation or exchange for another benefit.
To the extent that the benefits provided to the Executive pursuant to this Section 3(a)(ii) are
taxable to the Executive and are not otherwise exempt from Section 409A, any reimbursement amounts
to which the Executive would otherwise be entitled under this Section 3(a)(ii) during the first six
months following the date of the Executive’s Separation From Service shall be accumulated and paid
to the Executive on the date that is six months following the date of his Separation From Service.
All reimbursements by the Company under this Section 3(a)(ii) shall be paid no later than the
earlier of (i) the time periods described above and (ii) the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred.

          (iii) All benefits and amounts under the Company’s deferred compensation plan and all other
benefit plans (except as specifically provided for in Section 4(b) below), not already vested shall
become immediately one hundred percent (100%) vested as of the Date of Termination. All options to
acquire common shares of the Parent, all restricted common shares of the Parent, and all share
appreciation rights the value of which is determined by reference to or based upon the value of
common shares of the Parent, held by the Executive under any plan of the Company or its affiliated
companies shall become immediately vested, exercisable and nonforfeitable. The effect, if any, of
a Change of Control on any other equity incentives and other awards the value of which is
determined by reference to

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or based upon the value of common shares of the Parent shall be determined in accordance with
the terms of the applicable award agreement.

          (iv) The Company shall, at its sole expense as incurred, provide the Executive with reasonable
outplacement services from a provider selected by the Executive in his sole discretion. The
Company shall directly pay the provider the fees for such outplacement services. The period during
which such outplacement services shall be provided to the Executive at the expense of the Company
shall not extend beyond the last day of the second taxable year of the Executive following the
taxable year of the Executive during which he incurs a Separation From Service.

          (v) At the time specified in clause (x) below, ownership of all country club memberships,
luncheon clubs and other memberships which the Company was providing for the Executive’s or his
family’s use prior to the time that the Notice of Termination is given shall be transferred and
assigned to the Executive at no cost to the Executive (other than ordinary income taxes owed), the
cost of transfer, if any, to be borne by the Company.

          (vi) At the time specified in clause (x) below, the Company shall either transfer to the
Executive ownership and title to the Executive’s company car at no cost (other than ordinary income
taxes owed by the Executive) to the Executive or, if the Executive receives a monthly car allowance
in lieu of a Company car, pay the Executive a lump sum in cash equal to the Executive’s annual car
allowance multiplied by three (3).

          (vii) To the extent not already paid or provided, the Company shall timely pay or provide to
the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (collectively, the “Other Benefits”).

          (viii) If the Executive’s employment is terminated by reason of the Executive’s death, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and its affiliated companies to the estates and
beneficiaries of the executive officers of the Company and such affiliated companies under such
plans, programs, practices and policies relating to death benefits, if any, in effect on the date
hereof or, if more favorable, those in effect on the date of the Executive’s death.

          (ix) If the Executive’s employment is terminated by reason of the Executive’s Disability, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive shall be entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive’s disabled peer executive officers and/or their families in
accordance with such plans, programs, practices and policies relating to disability, if any, in
effect generally on the date hereof or, if more favorable, those in effect at the time of the
Disability.

          (x) The Company shall pay or provide to the Executive the amounts or benefits specified in
Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E), and Sections 3(a)(v) and
3(a)(vi) 30 days following the date of the Executive’s Separation From Service if he is not a
Specified Employee on the date of his Separation From Service or on the date that is six months
following the date of his Separation From Service if he is a Specified Employee.

          (xi) If the Executive is a Specified Employee, on the date that is six months following the
Executive’s Separation From Service, the Company shall pay to the Executive, in addition to the

 - 8 - 

 

amounts reflected in clause (x), an amount equal to the interest that would be earned on the
amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) and, to
the extent subject to a mandatory six-month delay in payment, all amounts payable under the ERP and
the SRP, for the period commencing on the date of the Executive’s Separation From Service until the
date of payment of such amounts, calculated using an interest rate of five percent per annum (the
“Interest Amount”).

          (xii) Notwithstanding any other provision of this Agreement to the contrary, the amount of the
payment under each of Sections 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) shall not exceed
the amount that would have been paid to the Executive had his Date of Termination occurred on
December 31, 2008.

     (b) Cause. If the Executive’s employment is terminated for Cause during the Employment Period
and prior to the expiration of the Term of the Agreement, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination for periods following his Separation From
Service on the date that is 30 days following the date of the Employee’s Separation From Service if
he is not a Specified Employee or on the date that is six months following the date of his
Separation From Service if he is a Specified Employee, and (y) Other Benefits, to the extent
theretofore unpaid.

     (c) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period and prior to the expiration of the Term of
the Agreement for any reason other than for Good Reason, the Executive’s employment shall terminate
without further obligations to the Executive, other than (x) the obligation to pay to the Executive
his Annual Base Salary through the Date of Termination for periods following his Separation From
Service, (y) Other Benefits and (z) the rights provided in Section 4. The Company shall pay to the
Executive the amount specified in clause (x) on the date that is 30 days following the date of the
Employee’s Separation From Service if he is not a Specified Employee or on the date that is six
months following the date of his Separation From Service if he is a Specified Employee.

4. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any plan,
contract or agreement with the Company or any of its affiliated companies. Except as otherwise
expressly provided herein, amounts which are vested benefits, which vest according to the terms of
this Agreement or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies prior to, at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice, program, contract or agreement. If any severance payments are
required to be paid to the Executive in conjunction with severance of employment under federal,
state or local law, the severance payments paid to the Executive under this Agreement will be
deemed to be in satisfaction of any such statutorily required benefit obligations to the extent
that doing so would not result in an acceleration of payment of nonqualified deferred compensation
that is prohibited under Section 409A.

     (b) Solely with respect to the ERP and the SRP, if the Executive’s employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has occurred or is
pending, any ERP or SRP benefits payable shall only be those that are payable, if any, under the
terms of the ERP or SRP as of the Date of Termination.

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5. Full Settlement.

     (a) No Rights of Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.

     (b) No Mitigation Required. The Company agrees that, if the Executive’s employment with the
Company terminates, the Executive is not required to seek other employment or to attempt in any way
to reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as specified in Section 3(a)(ii), the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

     (c) Legal Fees. The Company agrees to pay promptly as incurred, to the full extent permitted
by law, all legal fees and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or the Employment Agreement
or any guarantee of performance thereto (including as a result of any contest by the Executive
about the amount of any payment pursuant to this Agreement or the Employment Agreement). The legal
fees or expenses that are subject to reimbursement pursuant to this Section 5(c) shall not be
limited as a result of when the fees or expenses are incurred. The amount of legal fees or
expenses that is eligible for reimbursement pursuant to this Section 5(c) during a given taxable
year of the Executive shall not affect the amount of expenses eligible for reimbursement in any
other taxable year of the Executive. The right to reimbursement pursuant to this Section 5(c) is
not subject to liquidation or exchange for another benefit. Any amount to which the Executive is
entitled to reimbursement under this Section 5(c) during the first six months following the date of
the Executive’s Separation From Service shall be accumulated and paid to the Executive on the date
that is six months following the date of his Separation From Service. All reimbursements by the
Company under this Section 5(c) shall be paid no later than the earlier of (i) the time periods
described above and (ii) the last day of the Executive’s taxable year next following the taxable
year in which the expense was incurred.

6. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution by the Parent, the Company or any of their affiliated companies to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement, any other plan, agreement or contract or otherwise, but determined
without regard to any additional payments required under this Section 6) (a “Payment”) would be
subject to any additional tax or excise tax imposed by sections 409A, 457A or 4999 of the Code (and
any successor provisions or sections to sections 409A, 457A and 4999) or any interest or penalties
are incurred by the Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to promptly receive from the Company an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Any Gross Up Payment shall be made by the Company at least
10 days prior to the date that the Executive is required to remit to the relevant taxing authority
any federal, state and local taxes imposed upon the Executive, including the amount of

 - 10 - 

 

additional taxes imposed upon the Executive due to the Company’s payment of the initial taxes
on such amounts. Notwithstanding any provision of this Agreement to the contrary, any amounts to
which the Executive would otherwise be entitled under this Section 6(a) during the first six months
following the date of the Executive’s Separation From Service shall be accumulated and paid to the
Executive on the date that is six months following the date of his Separation From Service. All
reimbursements by the Company under this Section 6(a) be paid no later than the earlier of (i) the
time periods described above and (ii) the last day of the Executive’s taxable year next following
the taxable year in which the expense was incurred.

     (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public accounting firm as may
be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to the Executive within five
(5) days after the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm, absent manifest error, shall be binding upon the Company and the Executive,
subject to the last sentence of Section 6(a), and in no event later than the payment deadline
specified in Section 6(a). As a result of the uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive, subject to the last sentence of Section 6(a), and in no event
later than the payment deadline specified in Section 6(a).

     (c) The Executive shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification shall be given as
soon as practicable, but no later than ten business days after the Executive is informed in writing
of such claim, and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30)-day period following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If
the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

          (i) give the Company any information reasonably requested by the Company relating to such
claim,

          (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

 - 11 - 

 

          (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to such claims; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred at any time during the period that ends ten years following the
lifetime of the Executive in connection with such proceedings and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. The Company shall not direct the Executive to pay
such a claim and sue for a refund if, due to the prohibitions of section 402 of the Sarbanes-Oxley
Act of 2002, the Company may not advance to the Executive the amount necessary to pay such claim.
All such costs and expenses shall be made by the Company at least 10 days prior to the date that
the Executive is required to pay or incur such costs and expenses. The costs and expenses that are
subject to be paid by the Company pursuant to this Section 6(c) shall not be limited as a result of
when the costs or expenses are incurred. The amounts of costs or expenses that are eligible for
payment pursuant to this Section 6(c)(iv) during a given taxable year of the Executive shall not
affect the amount of costs or expenses eligible for payment in any other taxable year of the
Executive. The right to payment of costs and expenses pursuant to this Section 6(c)(iv) is not
subject to liquidation or exchange for another benefit. Notwithstanding any provision of this
Agreement to the contrary, any amounts to which the Executive would otherwise be entitled under
this Section 6(c)(iv) during the first six months following the date of the Employee’s Separation
From Service shall be accumulated and paid to the Executive on the date that is six months
following the date of his Separation From Service. All reimbursements by the Company under this
Section 6(c)(iv) shall be paid no later than the earlier of (i) the time periods described above
and (ii) the last day of the Executive’s taxable year next following the taxable year in which the
expense was incurred.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall not be required to be repaid.

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     (e) Any provision in this Agreement or any other plan or agreement to the contrary
notwithstanding, if the Company is required to pay a Gross-Up Payment pursuant to the provisions of
this Agreement and pursuant to the provisions of another plan or agreement, then the Company shall
pay the total of the amounts determined pursuant to this Agreement and the provisions of such other
plan or agreement.

7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement), information that is developed by the Executive independently of such information,
or knowledge or data or information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

8. Disputed Payments And Failures To Pay. If the Company fails to make a payment under
this Agreement in whole or in part as of the payment date specified in this Agreement, either
intentionally or unintentionally, other than with the consent of the Employee, the Company shall
owe the Employee interest on the delayed payment at the applicable Federal rate provided for in
section 7872(f)(2)(A) of the Code if the Employee (i) accepts the portion (if any) of the payment
that the Company is willing to make (unless such acceptance will result in a relinquishment of the
claim to all or part of the remaining amount) and (ii) makes prompt and reasonable good faith
efforts to collect the remaining portion of the payment. Any such interest payments shall become
due and payable effective as of the applicable payment date(s) specified in Section 3 with respect
to the delinquent payment(s) due under Section 3.

9. Funding. The Executive shall have no right, title, or interest whatsoever in or to any
assets of the Company or any investments which the Company may make to aid it in meeting its
obligations under this Agreement. The Executive’s right to receive payments under this Agreement
shall be no greater than the right of an unsecured general creditor of the Company. Immediately
prior to a Change in Control, the Company shall create an irrevocable grantor trust (the “Rabbi
Trust”) which shall be subject to the claims of creditors of the Company. In the event that the
Executive is a Specified Employee at the time he incurs a Separation From Service or at the time
the Company determines that it is reasonably likely that the Executive will incur a Separation From
Service in connection with a Change in Control, then immediately upon the Executive’s Separation
From Service or, if earlier, the date on which the Company makes a determination that the Executive
is reasonably likely to incur a Separation From Services in connection with a Change in Control,
the Company shall transfer to the Rabbi Trust cash sufficient (on an undiscounted basis) to pay the
cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E),
the estimated amount of the Gross-Up Payment to be made under Section 6 and the Interest Amount.
The cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and
3(a)(i)(E), the Gross-Up Payment and the Interest Amount shall be paid from the Rabbi Trust on the
dates specified in Sections 3 and 6 herein, provided that the Company shall remain liable to pay
any all amounts which for any reason are not paid from the Rabbi Trust. The trustee of the Rabbi
Trust shall be a bank or trust company selected by the Company and approved by the Executive (in
his sole discretion) prior to the Change in Control.

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10. Successors.

     (a) This Agreement is personal to the Executive and shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation,
amalgamation, scheme of arrangement, exchange offer, operation of law or otherwise (including any
purchase, merger, amalgamation, Corporate Transaction or other transaction involving the Parent,
Company or any subsidiary or Affiliate of the Company), to all or substantially all of the
Company’s or Parent’s business and/or the Parent’s Assets or the Company’s assets to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change of
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as provided above.

11. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	If to the Executive:

	 	Stuart E. Ferguson
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 
	 	 
	If to the Company:

	 	Weatherford International, Inc.
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 

	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

 - 14 - 

 

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right to the Executive or the Company may
have hereunder, including without limitation, the right of the Executive to terminate employment
for Good Reason shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

     (f) This Agreement constitutes the entire agreement and understanding between the parties
relating to the subject matter hereof and supersedes all prior agreements between the parties
relating to the subject matter hereof, including, without limitation, the Prior Agreements.

     (g) Notwithstanding any other provision of this Agreement, no benefits or payments hereunder
shall be provided or paid following December 31, 2010.

 - 15 - 

 

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	          /s/ Stuart E. Ferguson	 	 
	 	 	 	 	 
	 	 	          Stuart E. Ferguson	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Bernard J. Duroc-Danner	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	  Bernard J. Duroc-Danner	 	 
	 

	 	 	 	  President	 	 

 - 16 - 

 

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of January 1, 2009 (the
“Effective Date”), by and between Weatherford International, Inc., a Delaware corporation (the
“Company”), and Burt M. Martin (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Company has determined that it is in the interest of the Company and the
shareholders of Weatherford International Ltd. for the Company to commit to provide certain
severance benefits to the Executive in the event of his termination of employment under certain
conditions;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree:

1. Certain Definitions.

     (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (b) “Annual Base Salary” shall have the meaning specified in the Employment Agreement.

     (c) “Annual Bonus” shall mean the Executive’s annual bonus under the annual incentive plan of
the Company and any of its Affiliates.

     (d) “Annual Bonus Amount” shall mean the sum of (a) the amount of the Annual Bonus, if any,
paid or provided in any form (whether in cash, securities or any combination thereof) by the
Company or any of its Affiliates to or for the benefit of the Executive for services rendered or
labor performed during a fiscal year of the Company and (b) the amount of the discretionary bonus
or other bonus paid outside of the Company’s annual incentive plan, if any, paid or provided in any
form (whether in cash, securities or any combination thereof) by the Company or any of its
Affiliates to or for the benefit of the Employee (it being understood that if multiple bonuses are
paid for any given year, or if a bonus is made in multiple installments for a year, all such
bonuses or installments shall be aggregated as a single payment for that year in determining the
Annual Bonus Amount). The Executive’s Annual Bonus Amount shall be determined by including any
portion thereof that the Executive could have received in cash or securities in lieu of (i) any
elective deferrals made by the Executive pursuant to all nonqualified deferred compensation plans
or (ii) elective contributions made on the Executive’s behalf by the Company pursuant to a
qualified cash or deferred arrangement (as defined in section 401(k) of the Code) or pursuant to a
plan maintained under section 125 of the Code.

     (e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

     (f) “Board” shall mean the Board of Directors of the Parent.

     (g) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’s duties with the Parent or the Company (other than any such failure resulting from
incapacity due to physical or mental illness or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 4(d) of the Employment
Agreement), after a written

- 1 -

 

demand for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially performed the
Executive’s duties, or

          (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Parent or the Company.

     No act, or failure to act, on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the Parent or the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more senior officer of the
Company or based upon the advice of counsel for the Parent (which may be the General Counsel or
other counsel employed by the Parent or its subsidiaries) shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best interests of the Parent
or the Company. The cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive, and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

     (h) “Change of Control” shall be deemed to have occurred if any event set forth in any one of
the following paragraphs shall have occurred:

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Parent (the “Outstanding
Parent Common Shares”) or (B) the combined voting power of the then outstanding voting securities
of the Parent entitled to vote generally in the election of directors (the “Outstanding Parent
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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Parent’s shareholders, was approved by a vote of at least two-thirds (2/3) 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 any 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, scheme of
arrangement, exchange offer or similar transaction of the Parent or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the Parent’s Assets (any of
which 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 (which, for
purposes of this Agreement, shall include, without limitation, any corporation, partnership,
association, joint-stock company, limited liability company, trust, unincorporated organization or
other business entity) who were the beneficial owners, respectively, of the Outstanding Parent
Common Shares and Outstanding Parent Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than sixty-six and two-thirds percent
(66-2/3%) of, respectively, the then outstanding

- 2 -

 

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 Parent or all or substantially all of the Parent’s
Assets either directly or through one (1) or more subsidiaries or entities) in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Parent Common Shares and the Outstanding Parent 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 Parent or such entity resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock 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 (2/3) 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

          (iv) Approval or adoption by the Board of Directors or the shareholders of the Parent 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 Parent’s Assets or the dissolution of the Parent.

     (i) “Disability” shall mean the absence of the Executive from performance of the Executive’s
duties with the Parent on a substantial basis for one hundred twenty (120) calendar days as a
result of incapacity due to mental or physical illness.

     (j) “Employment Agreement” shall mean the Executive’s employment agreement with the Parent, as
it may be amended from time to time.

     (k) “Employment Period” shall have the meaning specified in the Employment Agreement.

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

     (m) “ERP” shall mean the Weatherford International Ltd. Nonqualified Executive Retirement
Plan, as it may be amended from time to time.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (o) “Good Reason” shall mean the occurrence of any of the following:

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of the
Employment Agreement, or any other action by the Parent or the Company which results in a
diminution in such position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Parent or the Company promptly after receipt of notice thereof given by the Executive;

          (ii) any failure by the Parent or the Company to comply with any of the provisions of this
Agreement or the Employment Agreement (including, without limitation, its obligations under Section
3(a) of the Employment Agreement), other than an isolated, insubstantial and inadvertent failure

- 3 -

 

not occurring in bad faith and which is remedied by the Parent or the Company promptly after
receipt of notice thereof given by the Executive;

          (iii) any failure by the Parent or the Company to continue to provide the Executive with
benefits currently enjoyed by the Executive under any of the Parent’s and the Company’s
compensation, bonus, retirement, pension, savings, life insurance, medical, health and accident, or
disability plans, or the taking of any other action by the Parent or the Company which would
directly or indirectly reduce any of such benefits or deprive the Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

          (iv) the Parent’s or the Company’s requiring the Executive to be based at any office or
location other than as provided in Section 3(a)(i) of the Employment Agreement or the Parent’s or
the Company’s requiring the Executive to travel on business to a substantially greater extent than
required immediately prior to the date hereof;

          (v) any purported termination by the Parent or the Company of the Executive’s employment
(including, without limitation, any secondment of the Executive without the Executive’s prior
express agreement in writing);

          (vi) any failure by the Parent to comply with and satisfy Section 10(b) of the Employment
Agreement;

          (vii) failure by the Parent (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive prior to the
termination or expiration of this Agreement, with such employment agreement and executive
retirement plan having the same terms and conditions as existed in agreements and plans between the
Parent or the Company and the Executive prior to December 30, 2008, and incorporating such terms
and conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

          (viii) in connection with, as a result of or following a Change of Control, the giving of
notice to the Executive that the Employment Period shall not be extended.

     In the event of a Change of Control or other Corporate Transaction in which the Parent’s
common shares may cease to be publicly traded, following the Change of Control or the consummation
of such other Corporate Transaction, “Good Reason” shall be deemed to exist upon the occurrence of
any of the events listed in clauses (i) through (vii) above and also in the event Executive is
assigned to any position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities that are (A) not at or with the publicly-traded ultimate parent company
of the successor to the Parent or the corporation or other entity surviving or resulting from such
Corporate Transaction or (B) inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 3(a) of the Employment Agreement.

     For purposes of this Agreement, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

     (p) “IRS” shall mean the Internal Revenue Service.

     (q) “Parent” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

- 4 -

 

     (r) “Parent’s Assets” shall mean the assets (of any kind) owned by the Parent, including,
without limitation, the securities of the Parent’s Subsidiaries and any of the assets owned by the
Parent’s Subsidiaries.

     (s) “Person” shall have the meaning given 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
Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Parent or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering by the Parent of such securities, or (iv) a corporation
or other entity owned, directly or indirectly, by the shareholders of the Parent in the same
proportions as their ownership of common shares of the Parent.

     (t) “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended
and the final Department of Treasury regulations issued thereunder.

     (u) “Separation From Service” shall have the meaning ascribed to such term in Section 409A.

     (v) “Specified Employee” shall have the meaning ascribed to such term in Section 409A.

     (w) “SRP” shall mean the Weatherford International, Inc. Supplemental Retirement Plan, as it
may be amended from time to time.

     (x) “Subsidiary” shall mean any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for the purposes of this Agreement.

     (y) “Term of the Agreement” shall mean the period commencing on January 1, 2009 and ending on
December 31, 2009.

2. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Parent determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with the Employment Agreement of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Parent shall terminate
effective thirty (30) days after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that within the thirty (30)-day period after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties. In addition, if a physician
selected by the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in accordance with
the Employment Agreement of the Executive’s intention to terminate his employment. In such event,
the Disability Effective Date shall be thirty (30) days after receipt of such notice by the
Company.

     (b) Cause. The Parent may terminate the Executive’s employment during the Employment Period
for Cause.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive at any time
during the Employment Period for Good Reason.

- 5 -

 

     (d) Notice of Termination. Any termination during the Employment Period shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement or the Employment Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date, in the case of a notice
by the Company, shall be not more than 30 days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” shall mean:

          (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be;

          (ii) if the Executive’s employment is terminated by the Company or the Parent other than for
Cause, the Date of Termination shall be the date on which the Executive receives notice of such
termination; and

          (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability Effective Date, as the
case may be.

3. Obligations of the Company Upon Termination.

     (a) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period
and prior to the expiration of the Term of the Agreement, the Executive’s employment is terminated
by reason of the Executive’s death or Disability, by the Parent or the Company for any reason other
than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable), at the times specified in clause (x), the following amounts:

               (A) an amount equal to the Executive’s Annual Base Salary through the Date of Termination for
periods following his Separation From Service to the extent not theretofore paid;

               (B) an amount equal to the product of (x) the higher of (I) the highest Annual Bonus Amount
for the preceding five (5) calendar years and (II) the Annual Bonus Amount that would be payable in
respect of the current fiscal year (and annualized for any fiscal year consisting of less than
twelve (12) months) (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is three hundred sixty-five (365);

               (C) an amount equal to three times the sum of (i) the highest Annual Base Salary received by
the Executive in the last five (5) years ended prior to the Termination Date and (ii) the Highest
Annual Bonus;

- 6 -

 

               (D) an amount equal to three times the sum of (i) the total of the employer basic and matching
contributions credited to the Executive under the Company’s 401(k) Savings Plan (the “401(k) Plan”)
during the twelve (12)-month period immediately preceding the month of the Executive’s Date of
Termination, and (ii) the amount that would have been credited and contributed to the Executive and
his accounts under all other deferred compensation plans (excluding the ERP and the SRP) using the
amounts specified in clauses (i) and (ii) of Section 3(a)(i)(C), such total amount to be grossed up
so that the amount the Executive actually receives after payment of any federal or state taxes
payable thereon equals the amount first described above; and

               (E) the total value of all fringe benefits received by the Executive on an annualized basis
multiplied by three (3).

          (ii) For a period of three (3) years from the Executive’s Date of Termination, or such longer
period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and the Executive’s family equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3(b)(iv) of the Employment Agreement if the Executive’s employment had not
been terminated; provided, however, that with respect to any of such plans, programs, practices or
policies requiring an employee contribution, the Executive (or Executive’s heirs or beneficiaries
as applicable) shall continue to pay the monthly employee contribution for same, and provided
further, that if the Executive becomes re-employed by another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If any of the dental, accident, health insurance or other
benefits specified in this Section 3(a)(ii) are taxable to the Executive and are not exempt from
Section 409A, the following provisions shall apply to the reimbursement or provision of such
benefits. The Executive shall be eligible for reimbursement for covered welfare expenses, or for
the provision of such benefits on an in-kind basis, during the period commencing on Executive’s
Date of Termination and ending on the third anniversary of such date. The amount of such welfare
benefit expenses eligible for reimbursement or the in-kind benefits provided under this Section
3(a)(ii), during the Executive’s taxable year will not affect the expenses eligible for
reimbursement, or the benefits to be provided, in any other taxable year (with the exception of
applicable lifetime maximums applicable to medical expenses or medical benefits described in
Section 105(b) of the Code). The Executive’s right to reimbursement or direct provision of
benefits under this Section 3(a)(ii) is not subject to liquidation or exchange for another benefit.
To the extent that the benefits provided to the Executive pursuant to this Section 3(a)(ii) are
taxable to the Executive and are not otherwise exempt from Section 409A, any reimbursement amounts
to which the Executive would otherwise be entitled under this Section 3(a)(ii) during the first six
months following the date of the Executive’s Separation From Service shall be accumulated and paid
to the Executive on the date that is six months following the date of his Separation From Service.
All reimbursements by the Company under this Section 3(a)(ii) shall be paid no later than the
earlier of (i) the time periods described above and (ii) the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred.

          (iii) All benefits and amounts under the Company’s deferred compensation plan and all other
benefit plans (except as specifically provided for in Section 4(b) below), not already vested shall
become immediately one hundred percent (100%) vested as of the Date of Termination. All options to
acquire common shares of the Parent, all restricted common shares of the Parent, and all share
appreciation rights the value of which is determined by reference to or based upon the value of
common shares of the Parent, held by the Executive under any plan of the Company or its affiliated
companies shall become immediately vested, exercisable and nonforfeitable. The effect, if any, of
a Change of Control on any other equity incentives and other awards the value of which is
determined by reference to

- 7 -

 

or based upon the value of common shares of the Parent shall be determined in accordance with
the terms of the applicable award agreement.

          (iv) The Company shall, at its sole expense as incurred, provide the Executive with reasonable
outplacement services from a provider selected by the Executive in his sole discretion. The
Company shall directly pay the provider the fees for such outplacement services. The period during
which such outplacement services shall be provided to the Executive at the expense of the Company
shall not extend beyond the last day of the second taxable year of the Executive following the
taxable year of the Executive during which he incurs a Separation From Service.

          (v) At the time specified in clause (x) below, ownership of all country club memberships,
luncheon clubs and other memberships which the Company was providing for the Executive’s or his
family’s use prior to the time that the Notice of Termination is given shall be transferred and
assigned to the Executive at no cost to the Executive (other than ordinary income taxes owed), the
cost of transfer, if any, to be borne by the Company.

          (vi) At the time specified in clause (x) below, the Company shall either transfer to the
Executive ownership and title to the Executive’s company car at no cost (other than ordinary income
taxes owed by the Executive) to the Executive or, if the Executive receives a monthly car allowance
in lieu of a Company car, pay the Executive a lump sum in cash equal to the Executive’s annual car
allowance multiplied by three (3).

          (vii) To the extent not already paid or provided, the Company shall timely pay or provide to
the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (collectively, the “Other Benefits”).

          (viii) If the Executive’s employment is terminated by reason of the Executive’s death, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and its affiliated companies to the estates and
beneficiaries of the executive officers of the Company and such affiliated companies under such
plans, programs, practices and policies relating to death benefits, if any, in effect on the date
hereof or, if more favorable, those in effect on the date of the Executive’s death.

          (ix) If the Executive’s employment is terminated by reason of the Executive’s Disability, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive shall be entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive’s disabled peer executive officers and/or their families in
accordance with such plans, programs, practices and policies relating to disability, if any, in
effect generally on the date hereof or, if more favorable, those in effect at the time of the
Disability.

          (x) The Company shall pay or provide to the Executive the amounts or benefits specified in
Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E), and Sections 3(a)(v) and
3(a)(vi) 30 days following the date of the Executive’s Separation From Service if he is not a
Specified Employee on the date of his Separation From Service or on the date that is six months
following the date of his Separation From Service if he is a Specified Employee.

          (xi) If the Executive is a Specified Employee, on the date that is six months following the
Executive’s Separation From Service, the Company shall pay to the Executive, in addition to the

- 8 -

 

amounts reflected in clause (x), an amount equal to the interest that would be earned on the
amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) and, to
the extent subject to a mandatory six-month delay in payment, all amounts payable under the ERP and
the SRP, for the period commencing on the date of the Executive’s Separation From Service until the
date of payment of such amounts, calculated using an interest rate of five percent per annum (the
“Interest Amount”).

          (xii) Notwithstanding any other provision of this Agreement to the contrary, the amount of the
payment under each of Sections 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) shall not exceed
the amount that would have been paid to the Executive had his Date of Termination occurred on
December 31, 2008.

     (b) Cause. If the Executive’s employment is terminated for Cause during the Employment Period
and prior to the expiration of the Term of the Agreement, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination for periods following his Separation From
Service on the date that is 30 days following the date of the Employee’s Separation From Service if
he is not a Specified Employee or on the date that is six months following the date of his
Separation From Service if he is a Specified Employee, and (y) Other Benefits, to the extent
theretofore unpaid.

     (c) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period and prior to the expiration of the Term of
the Agreement for any reason other than for Good Reason, the Executive’s employment shall terminate
without further obligations to the Executive, other than (x) the obligation to pay to the Executive
his Annual Base Salary through the Date of Termination for periods following his Separation From
Service, (y) Other Benefits and (z) the rights provided in Section 4. The Company shall pay to the
Executive the amount specified in clause (x) on the date that is 30 days following the date of the
Employee’s Separation From Service if he is not a Specified Employee or on the date that is six
months following the date of his Separation From Service if he is a Specified Employee.

4. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any plan,
contract or agreement with the Company or any of its affiliated companies. Except as otherwise
expressly provided herein, amounts which are vested benefits, which vest according to the terms of
this Agreement or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies prior to, at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice, program, contract or agreement. If any severance payments are
required to be paid to the Executive in conjunction with severance of employment under federal,
state or local law, the severance payments paid to the Executive under this Agreement will be
deemed to be in satisfaction of any such statutorily required benefit obligations to the extent
that doing so would not result in an acceleration of payment of nonqualified deferred compensation
that is prohibited under Section 409A.

     (b) Solely with respect to the ERP and the SRP, if the Executive’s employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has occurred or is
pending, any ERP or SRP benefits payable shall only be those that are payable, if any, under the
terms of the ERP or SRP as of the Date of Termination.

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5. Full Settlement.

     (a) No Rights of Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.

     (b) No Mitigation Required. The Company agrees that, if the Executive’s employment with the
Company terminates, the Executive is not required to seek other employment or to attempt in any way
to reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as specified in Section 3(a)(ii), the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

     (c) Legal Fees. The Company agrees to pay promptly as incurred, to the full extent permitted
by law, all legal fees and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or the Employment Agreement
or any guarantee of performance thereto (including as a result of any contest by the Executive
about the amount of any payment pursuant to this Agreement or the Employment Agreement). The legal
fees or expenses that are subject to reimbursement pursuant to this Section 5(c) shall not be
limited as a result of when the fees or expenses are incurred. The amount of legal fees or
expenses that is eligible for reimbursement pursuant to this Section 5(c) during a given taxable
year of the Executive shall not affect the amount of expenses eligible for reimbursement in any
other taxable year of the Executive. The right to reimbursement pursuant to this Section 5(c) is
not subject to liquidation or exchange for another benefit. Any amount to which the Executive is
entitled to reimbursement under this Section 5(c) during the first six months following the date of
the Executive’s Separation From Service shall be accumulated and paid to the Executive on the date
that is six months following the date of his Separation From Service. All reimbursements by the
Company under this Section 5(c) shall be paid no later than the earlier of (i) the time periods
described above and (ii) the last day of the Executive’s taxable year next following the taxable
year in which the expense was incurred.

6. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution by the Parent, the Company or any of their affiliated companies to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement, any other plan, agreement or contract or otherwise, but determined
without regard to any additional payments required under this Section 6) (a “Payment”) would be
subject to any additional tax or excise tax imposed by sections 409A, 457A or 4999 of the Code (and
any successor provisions or sections to sections 409A, 457A and 4999) or any interest or penalties
are incurred by the Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to promptly receive from the Company an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Any Gross Up Payment shall be made by the Company at least
10 days prior to the date that the Executive is required to remit to the relevant taxing authority
any federal, state and local taxes imposed upon the Executive, including the amount of

- 10 -

 

additional taxes imposed upon the Executive due to the Company’s payment of the initial taxes
on such amounts. Notwithstanding any provision of this Agreement to the contrary, any amounts to
which the Executive would otherwise be entitled under this Section 6(a) during the first six months
following the date of the Executive’s Separation From Service shall be accumulated and paid to the
Executive on the date that is six months following the date of his Separation From Service. All
reimbursements by the Company under this Section 6(a) be paid no later than the earlier of (i) the
time periods described above and (ii) the last day of the Executive’s taxable year next following
the taxable year in which the expense was incurred.

     (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public accounting firm as may
be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to the Executive within five
(5) days after the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm, absent manifest error, shall be binding upon the Company and the Executive,
subject to the last sentence of Section 6(a), and in no event later than the payment deadline
specified in Section 6(a). As a result of the uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive, subject to the last sentence of Section 6(a), and in no event
later than the payment deadline specified in Section 6(a).

     (c) The Executive shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification shall be given as
soon as practicable, but no later than ten business days after the Executive is informed in writing
of such claim, and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30)-day period following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If
the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

          (i) give the Company any information reasonably requested by the Company relating to such
claim,

          (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

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          (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to such claims; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred at any time during the period that ends ten years following the
lifetime of the Executive in connection with such proceedings and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. The Company shall not direct the Executive to pay
such a claim and sue for a refund if, due to the prohibitions of section 402 of the Sarbanes-Oxley
Act of 2002, the Company may not advance to the Executive the amount necessary to pay such claim.
All such costs and expenses shall be made by the Company at least 10 days prior to the date that
the Executive is required to pay or incur such costs and expenses. The costs and expenses that are
subject to be paid by the Company pursuant to this Section 6(c) shall not be limited as a result of
when the costs or expenses are incurred. The amounts of costs or expenses that are eligible for
payment pursuant to this Section 6(c)(iv) during a given taxable year of the Executive shall not
affect the amount of costs or expenses eligible for payment in any other taxable year of the
Executive. The right to payment of costs and expenses pursuant to this Section 6(c)(iv) is not
subject to liquidation or exchange for another benefit. Notwithstanding any provision of this
Agreement to the contrary, any amounts to which the Executive would otherwise be entitled under
this Section 6(c)(iv) during the first six months following the date of the Employee’s Separation
From Service shall be accumulated and paid to the Executive on the date that is six months
following the date of his Separation From Service. All reimbursements by the Company under this
Section 6(c)(iv) shall be paid no later than the earlier of (i) the time periods described above
and (ii) the last day of the Executive’s taxable year next following the taxable year in which the
expense was incurred.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall not be required to be repaid.

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     (e) Any provision in this Agreement or any other plan or agreement to the contrary
notwithstanding, if the Company is required to pay a Gross-Up Payment pursuant to the provisions of
this Agreement and pursuant to the provisions of another plan or agreement, then the Company shall
pay the total of the amounts determined pursuant to this Agreement and the provisions of such other
plan or agreement.

7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement), information that is developed by the Executive independently of such information,
or knowledge or data or information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

8. Disputed Payments And Failures To Pay. If the Company fails to make a payment under
this Agreement in whole or in part as of the payment date specified in this Agreement, either
intentionally or unintentionally, other than with the consent of the Employee, the Company shall
owe the Employee interest on the delayed payment at the applicable Federal rate provided for in
section 7872(f)(2)(A) of the Code if the Employee (i) accepts the portion (if any) of the payment
that the Company is willing to make (unless such acceptance will result in a relinquishment of the
claim to all or part of the remaining amount) and (ii) makes prompt and reasonable good faith
efforts to collect the remaining portion of the payment. Any such interest payments shall become
due and payable effective as of the applicable payment date(s) specified in Section 3 with respect
to the delinquent payment(s) due under Section 3.

9. Funding. The Executive shall have no right, title, or interest whatsoever in or to any
assets of the Company or any investments which the Company may make to aid it in meeting its
obligations under this Agreement. The Executive’s right to receive payments under this Agreement
shall be no greater than the right of an unsecured general creditor of the Company. Immediately
prior to a Change in Control, the Company shall create an irrevocable grantor trust (the “Rabbi
Trust”) which shall be subject to the claims of creditors of the Company. In the event that the
Executive is a Specified Employee at the time he incurs a Separation From Service or at the time
the Company determines that it is reasonably likely that the Executive will incur a Separation From
Service in connection with a Change in Control, then immediately upon the Executive’s Separation
From Service or, if earlier, the date on which the Company makes a determination that the Executive
is reasonably likely to incur a Separation From Services in connection with a Change in Control,
the Company shall transfer to the Rabbi Trust cash sufficient (on an undiscounted basis) to pay the
cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E),
the estimated amount of the Gross-Up Payment to be made under Section 6 and the Interest Amount.
The cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and
3(a)(i)(E), the Gross-Up Payment and the Interest Amount shall be paid from the Rabbi Trust on the
dates specified in Sections 3 and 6 herein, provided that the Company shall remain liable to pay
any all amounts which for any reason are not paid from the Rabbi Trust. The trustee of the Rabbi
Trust shall be a bank or trust company selected by the Company and approved by the Executive (in
his sole discretion) prior to the Change in Control.

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10. Successors.

     (a) This Agreement is personal to the Executive and shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation,
amalgamation, scheme of arrangement, exchange offer, operation of law or otherwise (including any
purchase, merger, amalgamation, Corporate Transaction or other transaction involving the Parent,
Company or any subsidiary or Affiliate of the Company), to all or substantially all of the
Company’s or Parent’s business and/or the Parent’s Assets or the Company’s assets to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change of
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as provided above.

11. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	If to the Executive:

	 	Burt M. Martin
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 
	 	 
	If to the Company:

	 	Weatherford International, Inc.
	 

	 	515 Post Oak Boulevard
	 

	 	Houston, Texas 77027
	 

	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

- 14 -

 

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right to the Executive or the Company may
have hereunder, including without limitation, the right of the Executive to terminate employment
for Good Reason shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

     (f) This Agreement constitutes the entire agreement and understanding between the parties
relating to the subject matter hereof and supersedes all prior agreements between the parties
relating to the subject matter hereof, including, without limitation, the Prior Agreements.

     (g) Notwithstanding any other provision of this Agreement, no benefits or payments hereunder
shall be provided or paid following December 31, 2010.

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     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	          /s/ Burt M. Martin	 	 
	 	 	 	 	 
	 	 	          Burt M. Martin	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Bernard J. Duroc-Danner	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	  Bernard J. Duroc-Danner	 	 
	 

	 	 	 	  President	 	 

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EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of January 1, 2009 (the
“Effective Date”), by and between Weatherford International, Inc., a Delaware corporation (the
“Company”), and Keith R. Morley (the “Executive”).

W I T N
E S S E T H:

     WHEREAS, the Company has determined that it is in the interest of the Company and the
shareholders of Weatherford International Ltd. for the Company to commit to provide certain
severance benefits to the Executive in the event of his termination of employment under certain
conditions;

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree:

1. Certain Definitions.

     (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (b) “Annual Base Salary” shall have the meaning specified in the Employment Agreement.

     (c) “Annual Bonus” shall mean the Executive’s annual bonus under the annual incentive plan of
the Company and any of its Affiliates.

     (d) “Annual Bonus Amount” shall mean the sum of (a) the amount of the Annual Bonus, if any,
paid or provided in any form (whether in cash, securities or any combination thereof) by the
Company or any of its Affiliates to or for the benefit of the Executive for services rendered or
labor performed during a fiscal year of the Company and (b) the amount of the discretionary bonus
or other bonus paid outside of the Company’s annual incentive plan, if any, paid or provided in any
form (whether in cash, securities or any combination thereof) by the Company or any of its
Affiliates to or for the benefit of the Employee (it being understood that if multiple bonuses are
paid for any given year, or if a bonus is made in multiple installments for a year, all such
bonuses or installments shall be aggregated as a single payment for that year in determining the
Annual Bonus Amount). The Executive’s Annual Bonus Amount shall be determined by including any
portion thereof that the Executive could have received in cash or securities in lieu of (i) any
elective deferrals made by the Executive pursuant to all nonqualified deferred compensation plans
or (ii) elective contributions made on the Executive’s behalf by the Company pursuant to a
qualified cash or deferred arrangement (as defined in section 401(k) of the Code) or pursuant to a
plan maintained under section 125 of the Code.

     (e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

     (f) “Board” shall mean the Board of Directors of the Parent.

     (g) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’s duties with the Parent or the Company (other than any such failure resulting from
incapacity due to physical or mental illness or anticipated failure after the issuance of a Notice
of Termination for Good Reason by the Executive pursuant to Section 4(d) of the Employment
Agreement), after a written

- 1 -

 

demand for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially performed the
Executive’s duties, or

          (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Parent or the Company.

     No act, or failure to act, on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the Parent or the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more senior officer of the
Company or based upon the advice of counsel for the Parent (which may be the General Counsel or
other counsel employed by the Parent or its subsidiaries) shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best interests of the Parent
or the Company. The cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire membership of the
Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive, and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

     (h) “Change of Control” shall be deemed to have occurred if any event set forth in any one of
the following paragraphs shall have occurred:

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Parent (the “Outstanding
Parent Common Shares”) or (B) the combined voting power of the then outstanding voting securities
of the Parent entitled to vote generally in the election of directors (the “Outstanding Parent
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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Parent’s shareholders, was approved by a vote of at least two-thirds (2/3) 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 any 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, scheme of
arrangement, exchange offer or similar transaction of the Parent or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the Parent’s Assets (any of
which 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 (which, for
purposes of this Agreement, shall include, without limitation, any corporation, partnership,
association, joint-stock company, limited liability company, trust, unincorporated organization or
other business entity) who were the beneficial owners, respectively, of the Outstanding Parent
Common Shares and Outstanding Parent Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than sixty-six and two-thirds percent
(66-2/3%) of, respectively, the then outstanding

- 2 -

 

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 Parent or all or substantially all of the Parent’s
Assets either directly or through one (1) or more subsidiaries or entities) in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Parent Common Shares and the Outstanding Parent 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 Parent or such entity resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock 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 (2/3) 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

          (iv) Approval or adoption by the Board of Directors or the shareholders of the Parent 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 Parent’s Assets or the dissolution of the Parent.

     (i) “Disability” shall mean the absence of the Executive from performance of the Executive’s
duties with the Parent on a substantial basis for one hundred twenty (120) calendar days as a
result of incapacity due to mental or physical illness.

     (j) “Employment Agreement” shall mean the Executive’s employment agreement with the Parent, as
it may be amended from time to time.

     (k) “Employment Period” shall have the meaning specified in the Employment Agreement.

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

     (m) “ERP” shall mean the Weatherford International Ltd. Nonqualified Executive Retirement
Plan, as it may be amended from time to time.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (o) “Good Reason” shall mean the occurrence of any of the following:

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of the
Employment Agreement, or any other action by the Parent or the Company which results in a
diminution in such position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Parent or the Company promptly after receipt of notice thereof given by the Executive;

          (ii) any failure by the Parent or the Company to comply with any of the provisions of this
Agreement or the Employment Agreement (including, without limitation, its obligations under Section
3(a) of the Employment Agreement), other than an isolated, insubstantial and inadvertent failure

- 3 -

 

not occurring in bad faith and which is remedied by the Parent or the Company promptly after
receipt of notice thereof given by the Executive;

          (iii) any failure by the Parent or the Company to continue to provide the Executive with
benefits currently enjoyed by the Executive under any of the Parent’s and the Company’s
compensation, bonus, retirement, pension, savings, life insurance, medical, health and accident, or
disability plans, or the taking of any other action by the Parent or the Company which would
directly or indirectly reduce any of such benefits or deprive the Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

          (iv) the Parent’s or the Company’s requiring the Executive to be based at any office or
location other than as provided in Section 3(a)(i) of the Employment Agreement or the Parent’s or
the Company’s requiring the Executive to travel on business to a substantially greater extent than
required immediately prior to the date hereof;

          (v) any purported termination by the Parent or the Company of the Executive’s employment
(including, without limitation, any secondment of the Executive without the Executive’s prior
express agreement in writing);

          (vi) any failure by the Parent to comply with and satisfy Section 10(b) of the Employment
Agreement;

          (vii) failure by the Parent (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive prior to the
termination or expiration of this Agreement, with such employment agreement and executive
retirement plan having the same terms and conditions as existed in agreements and plans between the
Parent or the Company and the Executive prior to December 30, 2008, and incorporating such terms
and conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

          (viii) in connection with, as a result of or following a Change of Control, the giving of
notice to the Executive that the Employment Period shall not be extended.

     In the event of a Change of Control or other Corporate Transaction in which the Parent’s
common shares may cease to be publicly traded, following the Change of Control or the consummation
of such other Corporate Transaction, “Good Reason” shall be deemed to exist upon the occurrence of
any of the events listed in clauses (i) through (vii) above and also in the event Executive is
assigned to any position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities that are (A) not at or with the publicly-traded ultimate parent company
of the successor to the Parent or the corporation or other entity surviving or resulting from such
Corporate Transaction or (B) inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 3(a) of the Employment Agreement.

     For purposes of this Agreement, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

     (p) “IRS” shall mean the Internal Revenue Service.

     (q) “Parent” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

- 4 -

 

     (r) “Parent’s Assets” shall mean the assets (of any kind) owned by the Parent, including,
without limitation, the securities of the Parent’s Subsidiaries and any of the assets owned by the
Parent’s Subsidiaries.

     (s) “Person” shall have the meaning given 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
Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Parent or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering by the Parent of such securities, or (iv) a corporation
or other entity owned, directly or indirectly, by the shareholders of the Parent in the same
proportions as their ownership of common shares of the Parent.

     (t) “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended
and the final Department of Treasury regulations issued thereunder.

     (u) “Separation From Service” shall have the meaning ascribed to such term in Section 409A.

     (v) “Specified Employee” shall have the meaning ascribed to such term in Section 409A.

     (w) “SRP” shall mean the Weatherford International, Inc. Supplemental Retirement Plan, as it
may be amended from time to time.

     (x) “Subsidiary” shall mean any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for the purposes of this Agreement.

     (y) “Term of the Agreement” shall mean the period commencing on January 1, 2009 and ending on
December 31, 2009.

2. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Parent determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with the Employment Agreement of its intention to terminate the
Executive’s employment. In such event, the Executive’s employment with the Parent shall terminate
effective thirty (30) days after receipt of such notice by the Executive (the “Disability Effective
Date”), provided that within the thirty (30)-day period after such receipt, the Executive shall not
have returned to full-time performance of the Executive’s duties. In addition, if a physician
selected by the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in accordance with
the Employment Agreement of the Executive’s intention to terminate his employment. In such event,
the Disability Effective Date shall be thirty (30) days after receipt of such notice by the
Company.

     (b) Cause. The Parent may terminate the Executive’s employment during the Employment Period
for Cause.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive at any time
during the Employment Period for Good Reason.

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     (d) Notice of Termination. Any termination during the Employment Period shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement or the Employment Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date, in the case of a notice
by the Company, shall be not more than 30 days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” shall mean:

          (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive
for Good Reason, the date of receipt of the Notice of Termination or any later date specified
therein, as the case may be;

          (ii) if the Executive’s employment is terminated by the Company or the Parent other than for
Cause, the Date of Termination shall be the date on which the Executive receives notice of such
termination; and

          (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability Effective Date, as the
case may be.

3. Obligations of the Company Upon Termination.

     (a) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period
and prior to the expiration of the Term of the Agreement, the Executive’s employment is terminated
by reason of the Executive’s death or Disability, by the Parent or the Company for any reason other
than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable), at the times specified in clause (x), the following amounts:

               (A) an amount equal to the Executive’s Annual Base Salary through the Date of Termination for
periods following his Separation From Service to the extent not theretofore paid;

               (B) an amount equal to the product of (x) the higher of (I) the highest Annual Bonus Amount
for the preceding five (5) calendar years and (II) the Annual Bonus Amount that would be payable in
respect of the current fiscal year (and annualized for any fiscal year consisting of less than
twelve (12) months) (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a
fraction, the numerator of which is the number of days in the current fiscal year through the Date
of Termination, and the denominator of which is three hundred sixty-five (365);

               (C) an amount equal to three times the sum of (i) the highest Annual Base Salary received by
the Executive in the last five (5) years ended prior to the Termination Date and (ii) the Highest
Annual Bonus;

- 6 -

 

               (D) an amount equal to three times the sum of (i) the total of the employer basic and matching
contributions credited to the Executive under the Company’s 401(k) Savings Plan (the “401(k) Plan”)
during the twelve (12)-month period immediately preceding the month of the Executive’s Date of
Termination, and (ii) the amount that would have been credited and contributed to the Executive and
his accounts under all other deferred compensation plans (excluding the ERP and the SRP) using the
amounts specified in clauses (i) and (ii) of Section 3(a)(i)(C), such total amount to be grossed up
so that the amount the Executive actually receives after payment of any federal or state taxes
payable thereon equals the amount first described above; and

               (E) the total value of all fringe benefits received by the Executive on an annualized basis
multiplied by three (3).

          (ii) For a period of three (3) years from the Executive’s Date of Termination, or such longer
period as may be provided by the terms of the appropriate plan, program, practice or policy, the
Company shall continue benefits to the Executive and the Executive’s family equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3(b)(iv) of the Employment Agreement if the Executive’s employment had not
been terminated; provided, however, that with respect to any of such plans, programs, practices or
policies requiring an employee contribution, the Executive (or Executive’s heirs or beneficiaries
as applicable) shall continue to pay the monthly employee contribution for same, and provided
further, that if the Executive becomes re-employed by another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If any of the dental, accident, health insurance or other
benefits specified in this Section 3(a)(ii) are taxable to the Executive and are not exempt from
Section 409A, the following provisions shall apply to the reimbursement or provision of such
benefits. The Executive shall be eligible for reimbursement for covered welfare expenses, or for
the provision of such benefits on an in-kind basis, during the period commencing on Executive’s
Date of Termination and ending on the third anniversary of such date. The amount of such welfare
benefit expenses eligible for reimbursement or the in-kind benefits provided under this Section
3(a)(ii), during the Executive’s taxable year will not affect the expenses eligible for
reimbursement, or the benefits to be provided, in any other taxable year (with the exception of
applicable lifetime maximums applicable to medical expenses or medical benefits described in
Section 105(b) of the Code). The Executive’s right to reimbursement or direct provision of
benefits under this Section 3(a)(ii) is not subject to liquidation or exchange for another benefit.
To the extent that the benefits provided to the Executive pursuant to this Section 3(a)(ii) are
taxable to the Executive and are not otherwise exempt from Section 409A, any reimbursement amounts
to which the Executive would otherwise be entitled under this Section 3(a)(ii) during the first six
months following the date of the Executive’s Separation From Service shall be accumulated and paid
to the Executive on the date that is six months following the date of his Separation From Service.
All reimbursements by the Company under this Section 3(a)(ii) shall be paid no later than the
earlier of (i) the time periods described above and (ii) the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred.

          (iii) All benefits and amounts under the Company’s deferred compensation plan and all other
benefit plans (except as specifically provided for in Section 4(b) below), not already vested shall
become immediately one hundred percent (100%) vested as of the Date of Termination. All options to
acquire common shares of the Parent, all restricted common shares of the Parent, and all share
appreciation rights the value of which is determined by reference to or based upon the value of
common shares of the Parent, held by the Executive under any plan of the Company or its affiliated
companies shall become immediately vested, exercisable and nonforfeitable. The effect, if any, of
a Change of Control on any other equity incentives and other awards the value of which is
determined by reference to

- 7 -

 

or based upon the value of common shares of the Parent shall be determined in accordance with
the terms of the applicable award agreement.

          (iv) The Company shall, at its sole expense as incurred, provide the Executive with reasonable
outplacement services from a provider selected by the Executive in his sole discretion. The
Company shall directly pay the provider the fees for such outplacement services. The period during
which such outplacement services shall be provided to the Executive at the expense of the Company
shall not extend beyond the last day of the second taxable year of the Executive following the
taxable year of the Executive during which he incurs a Separation From Service.

          (v) At the time specified in clause (x) below, ownership of all country club memberships,
luncheon clubs and other memberships which the Company was providing for the Executive’s or his
family’s use prior to the time that the Notice of Termination is given shall be transferred and
assigned to the Executive at no cost to the Executive (other than ordinary income taxes owed), the
cost of transfer, if any, to be borne by the Company.

          (vi) At the time specified in clause (x) below, the Company shall either transfer to the
Executive ownership and title to the Executive’s company car at no cost (other than ordinary income
taxes owed by the Executive) to the Executive or, if the Executive receives a monthly car allowance
in lieu of a Company car, pay the Executive a lump sum in cash equal to the Executive’s annual car
allowance multiplied by three (3).

          (vii) To the extent not already paid or provided, the Company shall timely pay or provide to
the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (collectively, the “Other Benefits”).

          (viii) If the Executive’s employment is terminated by reason of the Executive’s death, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and its affiliated companies to the estates and
beneficiaries of the executive officers of the Company and such affiliated companies under such
plans, programs, practices and policies relating to death benefits, if any, in effect on the date
hereof or, if more favorable, those in effect on the date of the Executive’s death.

          (ix) If the Executive’s employment is terminated by reason of the Executive’s Disability, the
Other Benefits (as defined in this Section) shall also include, without limitation, and the
Executive shall be entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive’s disabled peer executive officers and/or their families in
accordance with such plans, programs, practices and policies relating to disability, if any, in
effect generally on the date hereof or, if more favorable, those in effect at the time of the
Disability.

          (x) The Company shall pay or provide to the Executive the amounts or benefits specified in
Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E), and Sections 3(a)(v) and
3(a)(vi) 30 days following the date of the Executive’s Separation From Service if he is not a
Specified Employee on the date of his Separation From Service or on the date that is six months
following the date of his Separation From Service if he is a Specified Employee.

          (xi) If the Executive is a Specified Employee, on the date that is six months following the
Executive’s Separation From Service, the Company shall pay to the Executive, in addition to the

- 8 -

 

amounts reflected in clause (x), an amount equal to the interest that would be earned on the
amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) and, to
the extent subject to a mandatory six-month delay in payment, all amounts payable under the ERP and
the SRP, for the period commencing on the date of the Executive’s Separation From Service until the
date of payment of such amounts, calculated using an interest rate of five percent per annum (the
“Interest Amount”).

          (xii) Notwithstanding any other provision of this Agreement to the contrary, the amount of the
payment under each of Sections 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E) shall not exceed
the amount that would have been paid to the Executive had his Date of Termination occurred on
December 31, 2008.

     (b) Cause. If the Executive’s employment is terminated for Cause during the Employment Period
and prior to the expiration of the Term of the Agreement, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the Executive (x) his
Annual Base Salary through the Date of Termination for periods following his Separation From
Service on the date that is 30 days following the date of the Employee’s Separation From Service if
he is not a Specified Employee or on the date that is six months following the date of his
Separation From Service if he is a Specified Employee, and (y) Other Benefits, to the extent
theretofore unpaid.

     (c) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period and prior to the expiration of the Term of
the Agreement for any reason other than for Good Reason, the Executive’s employment shall terminate
without further obligations to the Executive, other than (x) the obligation to pay to the Executive
his Annual Base Salary through the Date of Termination for periods following his Separation From
Service, (y) Other Benefits and (z) the rights provided in Section 4. The Company shall pay to the
Executive the amount specified in clause (x) on the date that is 30 days following the date of the
Employee’s Separation From Service if he is not a Specified Employee or on the date that is six
months following the date of his Separation From Service if he is a Specified Employee.

4. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any plan,
contract or agreement with the Company or any of its affiliated companies. Except as otherwise
expressly provided herein, amounts which are vested benefits, which vest according to the terms of
this Agreement or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies prior to, at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice, program, contract or agreement. If any severance payments are
required to be paid to the Executive in conjunction with severance of employment under federal,
state or local law, the severance payments paid to the Executive under this Agreement will be
deemed to be in satisfaction of any such statutorily required benefit obligations to the extent
that doing so would not result in an acceleration of payment of nonqualified deferred compensation
that is prohibited under Section 409A.

     (b) Solely with respect to the ERP and the SRP, if the Executive’s employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has occurred or is
pending, any ERP or SRP benefits payable shall only be those that are payable, if any, under the
terms of the ERP or SRP as of the Date of Termination.

- 9 -

 

5. Full Settlement.

     (a) No Rights of Offset. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.

     (b) No Mitigation Required. The Company agrees that, if the Executive’s employment with the
Company terminates, the Executive is not required to seek other employment or to attempt in any way
to reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as specified in Section 3(a)(ii), the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

     (c) Legal Fees. The Company agrees to pay promptly as incurred, to the full extent permitted
by law, all legal fees and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or the Employment Agreement
or any guarantee of performance thereto (including as a result of any contest by the Executive
about the amount of any payment pursuant to this Agreement or the Employment Agreement). The legal
fees or expenses that are subject to reimbursement pursuant to this Section 5(c) shall not be
limited as a result of when the fees or expenses are incurred. The amount of legal fees or
expenses that is eligible for reimbursement pursuant to this Section 5(c) during a given taxable
year of the Executive shall not affect the amount of expenses eligible for reimbursement in any
other taxable year of the Executive. The right to reimbursement pursuant to this Section 5(c) is
not subject to liquidation or exchange for another benefit. Any amount to which the Executive is
entitled to reimbursement under this Section 5(c) during the first six months following the date of
the Executive’s Separation From Service shall be accumulated and paid to the Executive on the date
that is six months following the date of his Separation From Service. All reimbursements by the
Company under this Section 5(c) shall be paid no later than the earlier of (i) the time periods
described above and (ii) the last day of the Executive’s taxable year next following the taxable
year in which the expense was incurred.

6. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution by the Parent, the Company or any of their affiliated companies to or
for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement, any other plan, agreement or contract or otherwise, but determined
without regard to any additional payments required under this Section 6) (a “Payment”) would be
subject to any additional tax or excise tax imposed by sections 409A, 457A or 4999 of the Code (and
any successor provisions or sections to sections 409A, 457A and 4999) or any interest or penalties
are incurred by the Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then
the Executive shall be entitled to promptly receive from the Company an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments. Any Gross Up Payment shall be made by the Company at least
10 days prior to the date that the Executive is required to remit to the relevant taxing authority
any federal, state and local taxes imposed upon the Executive, including the amount of

- 10 -

 

additional taxes imposed upon the Executive due to the Company’s payment of the initial taxes
on such amounts. Notwithstanding any provision of this Agreement to the contrary, any amounts to
which the Executive would otherwise be entitled under this Section 6(a) during the first six months
following the date of the Executive’s Separation From Service shall be accumulated and paid to the
Executive on the date that is six months following the date of his Separation From Service. All
reimbursements by the Company under this Section 6(a) be paid no later than the earlier of (i) the
time periods described above and (ii) the last day of the Executive’s taxable year next following
the taxable year in which the expense was incurred.

     (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public accounting firm as may
be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to the Executive within five
(5) days after the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm, absent manifest error, shall be binding upon the Company and the Executive,
subject to the last sentence of Section 6(a), and in no event later than the payment deadline
specified in Section 6(a). As a result of the uncertainty in the application of section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive, subject to the last sentence of Section 6(a), and in no event
later than the payment deadline specified in Section 6(a).

     (c) The Executive shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification shall be given as
soon as practicable, but no later than ten business days after the Executive is informed in writing
of such claim, and shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of
the thirty (30)-day period following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due). If
the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

          (i) give the Company any information reasonably requested by the Company relating to such
claim,

          (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

- 11 -

 

          (iii) cooperate with the Company in good faith in order to effectively contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to such claims; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred at any time during the period that ends ten years following the
lifetime of the Executive in connection with such proceedings and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. The Company shall not direct the Executive to pay
such a claim and sue for a refund if, due to the prohibitions of section 402 of the Sarbanes-Oxley
Act of 2002, the Company may not advance to the Executive the amount necessary to pay such claim.
All such costs and expenses shall be made by the Company at least 10 days prior to the date that
the Executive is required to pay or incur such costs and expenses. The costs and expenses that are
subject to be paid by the Company pursuant to this Section 6(c) shall not be limited as a result of
when the costs or expenses are incurred. The amounts of costs or expenses that are eligible for
payment pursuant to this Section 6(c)(iv) during a given taxable year of the Executive shall not
affect the amount of costs or expenses eligible for payment in any other taxable year of the
Executive. The right to payment of costs and expenses pursuant to this Section 6(c)(iv) is not
subject to liquidation or exchange for another benefit. Notwithstanding any provision of this
Agreement to the contrary, any amounts to which the Executive would otherwise be entitled under
this Section 6(c)(iv) during the first six months following the date of the Employee’s Separation
From Service shall be accumulated and paid to the Executive on the date that is six months
following the date of his Separation From Service. All reimbursements by the Company under this
Section 6(c)(iv) shall be paid no later than the earlier of (i) the time periods described above
and (ii) the last day of the Executive’s taxable year next following the taxable year in which the
expense was incurred.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall not be required to be repaid.

- 12 -

 

     (e) Any provision in this Agreement or any other plan or agreement to the contrary
notwithstanding, if the Company is required to pay a Gross-Up Payment pursuant to the provisions of
this Agreement and pursuant to the provisions of another plan or agreement, then the Company shall
pay the total of the amounts determined pursuant to this Agreement and the provisions of such other
plan or agreement.

7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company or any of its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive’s employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement), information that is developed by the Executive independently of such information,
or knowledge or data or information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the Executive’s employment with
the Company, the Executive shall not, without the prior written consent of the Company or as may
otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

8. Disputed Payments And Failures To Pay. If the Company fails to make a payment under
this Agreement in whole or in part as of the payment date specified in this Agreement, either
intentionally or unintentionally, other than with the consent of the Employee, the Company shall
owe the Employee interest on the delayed payment at the applicable Federal rate provided for in
section 7872(f)(2)(A) of the Code if the Employee (i) accepts the portion (if any) of the payment
that the Company is willing to make (unless such acceptance will result in a relinquishment of the
claim to all or part of the remaining amount) and (ii) makes prompt and reasonable good faith
efforts to collect the remaining portion of the payment. Any such interest payments shall become
due and payable effective as of the applicable payment date(s) specified in Section 3 with respect
to the delinquent payment(s) due under Section 3.

9. Funding. The Executive shall have no right, title, or interest whatsoever in or to any
assets of the Company or any investments which the Company may make to aid it in meeting its
obligations under this Agreement. The Executive’s right to receive payments under this Agreement
shall be no greater than the right of an unsecured general creditor of the Company. Immediately
prior to a Change in Control, the Company shall create an irrevocable grantor trust (the “Rabbi
Trust”) which shall be subject to the claims of creditors of the Company. In the event that the
Executive is a Specified Employee at the time he incurs a Separation From Service or at the time
the Company determines that it is reasonably likely that the Executive will incur a Separation From
Service in connection with a Change in Control, then immediately upon the Executive’s Separation
From Service or, if earlier, the date on which the Company makes a determination that the Executive
is reasonably likely to incur a Separation From Services in connection with a Change in Control,
the Company shall transfer to the Rabbi Trust cash sufficient (on an undiscounted basis) to pay the
cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and 3(a)(i)(E),
the estimated amount of the Gross-Up Payment to be made under Section 6 and the Interest Amount.
The cash amounts specified in Sections 3(a)(i)(A), 3(a)(i)(B), 3(a)(i)(C), 3(a)(i)(D) and
3(a)(i)(E), the Gross-Up Payment and the Interest Amount shall be paid from the Rabbi Trust on the
dates specified in Sections 3 and 6 herein, provided that the Company shall remain liable to pay
any all amounts which for any reason are not paid from the Rabbi Trust. The trustee of the Rabbi
Trust shall be a bank or trust company selected by the Company and approved by the Executive (in
his sole discretion) prior to the Change in Control.

- 13 -

 

10. Successors.

     (a) This Agreement is personal to the Executive and shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation,
amalgamation, scheme of arrangement, exchange offer, operation of law or otherwise (including any
purchase, merger, amalgamation, Corporate Transaction or other transaction involving the Parent,
Company or any subsidiary or Affiliate of the Company), to all or substantially all of the
Company’s or Parent’s business and/or the Parent’s Assets or the Company’s assets to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change of
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as provided above.

11. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Keith R. Morley
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Weatherford International, Inc.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notices and communications shall be effective when actually received by the addressee.

- 14 -

 

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right to the Executive or the Company may
have hereunder, including without limitation, the right of the Executive to terminate employment
for Good Reason shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

     (f) This Agreement constitutes the entire agreement and understanding between the parties
relating to the subject matter hereof and supersedes all prior agreements between the parties
relating to the subject matter hereof, including, without limitation, the Prior Agreements.

     (g) Notwithstanding any other provision of this Agreement, no benefits or payments hereunder
shall be provided or paid following December 31, 2010.

- 15 -

 

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Keith R. Morley	 	 
	 	 	 	 	 
	 

	 	 	 	Keith R. Morley	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner
 

Bernard J. Duroc-Danner

President
	 	 

- 16 -exv10w3

Exhibit 10.3

WEATHERFORD INTERNATIONAL, INC.

EXECUTIVE DEFERRED COMPENSATION

STOCK OWNERSHIP PLAN

(As Amended and Restated

Effective December 31, 2008)

 

 

WEATHERFORD INTERNATIONAL, INC.

EXECUTIVE DEFERRED COMPENSATION

STOCK OWNERSHIP PLAN

(As Amended and Restated

Effective December 31, 2008)

     THIS AGREEMENT by Weatherford International, Inc., a Delaware corporation;

W I T N E S S E T H :

     WHEREAS, Weatherford International, Inc. previously established the Weatherford International,
Inc. Executive Deferred Compensation Stock Ownership Plan (formerly known as the Energy Ventures,
Inc. Executive Deferred Compensation Stock Ownership Plan) (the “Plan") for a select group of
management and highly compensated employees; and

     WHEREAS, pursuant to that certain Weatherford Employee Benefit Agreement dated as of April 21,
2008, among Weatherford International, Inc., Weatherford International Ltd., Grant Prideco, Inc., a
Delaware corporation and National Oilwell Varco, Inc., a Delaware corporation (“NOV”), effective
April 22, 2008, the account of each Plan participant that was credited with units representing
shares of Grant Prideco, Inc. common stock was deemed to be credited with a certain number of units
representing shares of NOV common stock;

     WHEREAS, the Board of Directors of Weatherford International, Inc. has the authority to amend
the Plan from time to time pursuant to Section 9.1 of the Plan;

     WHEREAS, it has been determined that the Plan should be completely amended, restated and
continued without a gap or lapse in coverage, time or effect which would cause any Participant to
become fully vested or entitled to distribution;

 

 

     NOW, THEREFORE, effective as of December 31, 2008, Weatherford International. Inc. agrees that
the Plan is amended and restated in its entirety as follows:

 

 

WEATHERFORD INTERNATIONAL, INC.

EXECUTIVE DEFERRED COMPENSATION

STOCK OWNERSHIP PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Section	 
	ARTICLE I — DEFINITIONS
	 	 	 	 
	Account
	 	 	1.1	 
	Assets
	 	 	1.2	 
	Basic Benefit
	 	 	1.3	 
	Beneficiary
	 	 	1.4	 
	Board of Directors
	 	 	1.5	 
	Change of Control
	 	 	1.6	 
	Code
	 	 	1.7	 
	Committee
	 	 	1.8	 
	Common Shares
	 	 	1.9	 
	Company
	 	 	1.10	 
	Company Match
	 	 	1.11	 
	Compensation
	 	 	1.12	 
	Corporate Transaction
	 	 	1.13	 
	Deferral
	 	 	1.14	 
	Deferred Compensation Ledger
	 	 	1.15	 
	Disability
	 	 	1.16	 
	Entity
	 	 	1.17	 
	ERISA
	 	 	1.18	 
	Grandfathered Amounts
	 	 	1.19	 
	Grant Merger
	 	 	1.20	 
	Grant Spin-Off
	 	 	1.21	 
	Grant Stock
	 	 	1.22	 
	NOV
	 	 	1.23	 
	NOV Shares
	 	 	1.24	 
	Parent
	 	 	1.25	 
	Parent Board
	 	 	1.26	 
	Participant
	 	 	1.27	 
	Person
	 	 	1.28	 
	Plan
	 	 	1.29	 
	Plan Year
	 	 	1.30	 
	Retirement
	 	 	1.31	 
	Section 409A
	 	 	1.32	 
	Section 409A Amounts
	 	 	1.33	 
	Separation From Service
	 	 	1.34	 
	Specified Employee
	 	 	1.35	 
	Sponsor
	 	 	1.36	 
	Subsidiary
	 	 	1.37	 
	Trustee
	 	 	1.38	 
	Vesting Date
	 	 	1.39	 
	Year of Service
	 	 	1.40	 

-i-

 

WEATHERFORD INTERNATIONAL, INC.

EXECUTIVE DEFERRED COMPENSATION

STOCK OWNERSHIP PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Section	 
	ARTICLE II — ELIGIBILITY
	 	 	 	 
	 
	 	 	 	 
	ARTICLE III — DEFERRALS AND BENEFIT ACCRUALS
	 	 	 	 
	Basic Benefit Accrual
	 	 	3.1	 
	Deferral Election
	 	 	3.2	 
	Company Match Accrual
	 	 	3.3	 
	Reduction of Accruals
	 	 	3.4	 
	 
	 	 	 	 
	ARTICLE IV — ACCOUNT
	 	 	 	 
	Establishing a Participant’s Account
	 	 	4.1	 
	Basic Benefit Account
	 	 	4.2	 
	Deferral Account
	 	 	4.3	 
	Company Match Account
	 	 	4.4	 
	Gauge for Determining Benefits
	 	 	4.5	 
	Adjustments for the Grant Spin-Off and Grant Merger
	 	 	4.6	 
	 
	 	 	 	 
	ARTICLE V — VESTING
	 	 	 	 
	Deferrals
	 	 	5.1	 
	Basic Benefit and Company Match
	 	 	5.2	 
	 
	 	 	 	 
	ARTICLE VI — DISTRIBUTIONS
	 	 	 	 
	Death
	 	 	6.1	 
	Disability
	 	 	6.2	 
	Termination of Employment
	 	 	6.3	 
	Separation From Service
	 	 	6.4	 
	Specified Time
	 	 	6.5	 
	Forfeiture for Cause
	 	 	6.6	 
	Responsibility for Distributions and Withholding of Taxes
	 	 	6.7	 
	Distribution Determination Date
	 	 	6.8	 
	 
	 	 	 	 
	ARTICLE VII — ADMINISTRATION
	 	 	 	 
	Committee Appointment
	 	 	7.1	 
	Committee Organization and Voting
	 	 	7.2	 
	Powers of the Committee
	 	 	7.3	 
	Committee Discretion
	 	 	7.4	 
	Annual Statements
	 	 	7.5	 
	Reimbursement of Expenses
	 	 	7.6	 
	 
	 	 	 	 
	ARTICLE VIII — ADOPTION BY SUBSIDIARIES
	 	 	 	 
	Procedure for and Status After Adoption
	 	 	8.1	 

-ii-

 

WEATHERFORD INTERNATIONAL, INC.

EXECUTIVE DEFERRED COMPENSATION

STOCK OWNERSHIP PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Section	 
	Termination of Participation by Adopting Subsidiary
	 	 	8.2	 
	 
	 	 	 	 
	ARTICLE IX — AMENDMENT AND/OR TERMINATION
	 	 	 	 
	Amendment or Termination of the Plan
	 	 	9.1	 
	No Retroactive Effect on Awarded Benefits
	 	 	9.2	 
	Effect of Termination
	 	 	9.3	 
	 
	 	 	 	 
	ARTICLE X — PAYMENT
	 	 	 	 
	Payments Under This Agreement Are the Obligation of the Company
	 	 	10.1	 
	Payments May Be Made to a Rabbi Trust
	 	 	10.2	 
	Participants Must Rely Only on the General Credit of the Company
	 	 	10.3	 
	Plan Unfunded
	 	 	10.4	 
	 
	 	 	 	 
	ARTICLE XI — MISCELLANEOUS
	 	 	 	 
	Limitation of Rights
	 	 	11.1	 
	Distribution to Minor or Incapacitated Person
	 	 	11.2	 
	Nonalienation of Benefits
	 	 	11.3	 
	Reliance Upon Information
	 	 	11.4	 
	Severability
	 	 	11.5	 
	Notice
	 	 	11.6	 
	Gender and Number
	 	 	11.7	 
	Compliance with Section 409A
	 	 	11.8	 
	Freezing of the Plan
	 	 	11.9	 
	Governing Law
	 	 	11.10	 

-iii-

 

ARTICLE I

DEFINITIONS

     1.1 “Account” means all ledger accounts pertaining to a Participant which are maintained by
the Committee to reflect the amount of deferred compensation due the Participant. The Committee
shall establish the following Accounts and any additional Accounts that the Committee considers
necessary:

          (a) Deferral Account — The Participant’s deferral, if any, between one percent and 71/2 percent
of his Compensation.

          (b) Basic Benefit Account — The Company’s accrual of 71/2 percent of Compensation for each
Participant, or such lesser amount as the Committee establishes pursuant to Section 3.4.

          (c) Company Match Account — The Company’s match equal to 100 percent of the Participant’s
Deferral, if any, or such lesser amount as the Committee establishes pursuant to Section 3.4.

     1.2
“Assets” means assets of any kind owned by the Parent, including but not limited to
securities of the Parent’s direct or indirect subsidiaries and the assets of the Parent’s direct or
indirect subsidiaries.

     1.3 “Basic Benefit” means the accrual made by the Company for the benefit of a Participant
equal to 71/2 percent of the Participant’s Compensation, or such lesser amount as the Committee
establishes pursuant to Section 3.4.

     1.4 “Beneficiary” means a person or entity designated by the Participant under the terms of
the Plan to receive any amounts distributed under the Plan upon the death of the Participant.

     1.5 “Board of Directors” means the Board of Directors of the Sponsor.

     1.6 “Change of Control” means the occurrence of any event set forth in any one of the
following paragraphs of this Section 1.5:

I-1

 

     (i) any Person is or becomes the Beneficial Owner (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended from time to time (“Exchange Act”)), directly
or indirectly, of 20 percent or more of either (A) the then outstanding Common Shares (the
“Outstanding Parent Common Shares”) or (B) the combined voting power of the then
outstanding voting securities of the Parent entitled to vote generally in the election of
directors (the “Outstanding Parent 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 Parent Board (the
“Incumbent Board”) cease for any reason to constitute at least two-thirds of the Parent
Board; provided, however, that any individual becoming a director subsequent to the date
hereof whose election, or nomination for election by the Parent’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 any other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Parent Board; or

     (iii) the consummation of a reorganization, merger, amalgamation, scheme of
arrangement, exchange offer, consolidation or similar transaction of the Parent 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

I-2

 

and Entities who were the beneficial owners, respectively, of the Outstanding Parent Common
Shares and Outstanding Parent 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 Parent 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 Parent Common Shares
and the Outstanding Parent 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 Parent or such Entity resulting from 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

     (iv) Approval or adoption by the Parent Board or the shareholders of the Parent of a
plan or proposal which could result directly or indirectly in the liquidation,

I-3

 

transfer, sale or other disposal of all or substantially all of the Assets or the
dissolution of the Parent.

     1.7 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     1.8 “Committee” means the persons who are from time to time serving as members of the
committee administering the Plan.

     1.9 “Common Shares” means the common shares, U.S. $1.00 par value, of the Parent.

     1.10 “Company” means the Sponsor and any Subsidiary that adopts the Plan.

     1.11 “Company Match” means the 100 percent match which the Company accrues with respect to the
amount deferred during a Plan Year by a Participant under the Plan, or such lesser amount as the
Committee establishes pursuant to Section 3.4.

     1.12 “Compensation” means any remuneration paid (including by way of grant) to a Participant
by the Company during the portion of the Plan Year in which he is eligible to participate in the
Plan, or that would have been paid (including by way of grant) to a Participant during such portion
of the Plan Year by the Company but for the Participant’s election to make a Deferral under the
Plan or his deferrals under a cash or deferred arrangement described in section 401(k) of the Code
or a cafeteria plan described in section 125 of the Code, including and limited to regular base
pay, merit and incentive bonuses (other than bonuses paid by the Company with respect to services
for a predecessor employer that has not adopted the Plan or with respect to services performed by
the Participant prior to his employment by the Company, as determined by the Committee in its sole
discretion), commissions, short-term disability pay, vacation pay paid while the Participant is
employed by the Company, vacation pay paid upon a Participant’s termination of employment, and
retention bonuses. Compensation does not include sign-on

I-4

 

bonuses, foreign service premiums or bonuses, position allowances, location coefficient
payments, housing allowances, car allowances, goods and services allowances, tax gross-up payments,
hypothetical tax payments, expense reimbursements, travel allowances or bonuses, cash and non-cash
fringe benefits, severance pay, relocation allowances or expense reimbursements, deferred
compensation (such as income as a result of the exercise of a stock option or stock appreciation
right), or benefits under any pension plan or welfare plan as defined in ERISA (whether or not
paid under a program that is subject to regulation under ERISA).

     1.13 “Corporate Transaction” has the meaning given to such term in Section 1.6.

     1.14 “Deferral” means the amount of Compensation deferred under a deferral election made by a
Participant under Section 3.2.

     1.15 “Deferred Compensation Ledger” means the ledger maintained by the Committee for each
Participant which reflects the amount of Compensation deferred by the Participant under the Plan,
the Company Basic Benefit and the Company Match provided under the Plan, and the amount of earnings
and losses credited on each of these amounts.

     1.16 “Disability” means a physical or mental condition that prevents the Participant from
earning a reasonable livelihood with any Company and which was not the result of having engaged in
a felonious criminal enterprise, alcoholism, addiction to narcotics or service in the U.S. Armed
Forces. The Committee’s determination of a Participant’s Disability shall be in its sole
discretion and shall be final. However, in the case of Section 409A Amounts, a Participant shall
not be treated as having a Disability unless, in addition to the foregoing requirements, either (a)
the Participant is unable to engage in any substantial gainful activity by reason of a medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (b) the Participant has a

I-5

 

medically determinable physical or mental impairment that can be expected to result in death
or can be expected to last for a continuous period of not less than 12 months and for which the
Participant has received income replacement benefits for a period of at least three months under an
accident or health plan covering employees of the Company.

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

     1.18 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     1.19 “Grandfathered Amounts” means amounts credited under the Plan that were earned and vested
as of December 31, 2004 within the meaning of Section 409A, and earnings and losses thereon.

     1.20 “Grant Merger” means the merger of Grant Prideco, Inc. into NOV Sub, Inc. pursuant to the
Agreement and Plan of Merger by and among National Oilwell Varco, Inc., NOV Sub, Inc. and Grant
Prideco, Inc. dated as of December 16, 2007.

     1.21 “Grant Spin-Off” means the distribution by the Sponsor to its stockholders of all the
outstanding shares of stock of Grant Prideco, Inc.

     1.22 “Grant Stock” means the common stock, U.S. $.01 par value, of Grant Prideco, Inc.

     1.23 “NOV” means National Oilwell Varco, Inc., a Delaware corporation.

     1.24 “NOV Shares” means the shares of common stock of NOV, which, for accounting purposes
only, are to be considered credited to a Participant’s NOV Share Account. At no time shall NOV
Shares be considered as actual shares of common stock of NOV and a Participant shall have no rights
as a stockholder with respect to the NOV Shares.

I-6

 

     1.25 “Parent” means Weatherford International Ltd., a Bermuda exempted company, or any
successor to Weatherford International Ltd., including but not limited to any Entity into which
Weatherford International Ltd. is merged, consolidated or amalgamated or any Entity otherwise
resulting from a Corporate Transaction.

     1.26 “Parent Board” means the Board of Directors of the Parent.

     1.27 “Participant” means an employee of a Company who is eligible for and is participating in
the Plan.

     1.28 “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 Parent or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under
an employee benefit plan of the Parent 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 Parent of such securities, or (iv) a corporation or other
entity owned, directly or indirectly, by the shareholders of the Parent in the same proportions as
their ownership of the Common Shares.

     1.29 “Plan” means the Weatherford International, Inc. Executive Deferred Compensation Stock
Ownership Plan set out in this document, as amended from time to time.

     1.30 “Plan Year” means a one-year period which coincides with the calendar year.

     1.31 “Retirement” means the retirement of a Participant from any Company covered by the Plan
on or after attaining age 60 under its retirement policy.

     1.32 “Section 409A” means section 409A of the Code and the Department of Treasury rules and
regulations issued thereunder.

I-7

 

     1.33 “Section 409A Amounts” means all amounts credited under the Plan other than Grandfathered
Amounts.

     1.34 “Separation From Service” has the meaning ascribed to that term in Section 409A.

     1.35 “Specified Employee” has the meaning ascribed to that term in Section 409A.

     1.36 “Sponsor” means Weatherford International, Inc., the sponsor of the Plan, or any
successor to Weatherford International, Inc., including but not limited to any Entity into which
Weatherford International, Inc. is merged, consolidated or amalgamated, or any Entity otherwise
resulting from a Corporate Transaction.

     1.37 “Subsidiary” means any majority-owned subsidiary of the Parent or any majority-owned
subsidiary thereof, or any other Entity in which the Parent owns, directly or indirectly, a
significant financial interest provided that the Chief Executive Officer of the Parent designates
such Entity to be a Subsidiary for purposes of this Plan.

     1.38 “Trustee” means collectively or individually one or more corporations with trust powers
which have been appointed by the Sponsor and have accepted the duties of trustee of the Weatherford
International, Inc. Executive Deferred Compensation Stock Ownership Trust, and all successors
appointed by the Sponsor.

     1.39 “Vesting Date” means September 30 (December 31 in the case of Plan Years commencing on or
before January 1, 2000) of each Plan Year.

     1.40 “Year of Service” means, except as specified below, 365 days of employment with the
Sponsor or a Subsidiary while a Participant. Notwithstanding the foregoing to the contrary, (i) a
Participant who in his initial year of participation in the Plan has not completed a full Year of
Service on the Vesting Date coincident with or next following his entry into the Plan

I-8

 

and who is employed by the Sponsor or a Subsidiary on such Vesting Date, shall be credited
with the number of days of service as is necessary to provide him with a full Year of Service on
such Vesting Date and (ii) a person (other than a Participant in his initial Year of Service) who
(a) is a Participant in the Plan as of the September 30, 2001 Vesting Date, (b) would have
completed 365 days of employment with the Sponsor or a Subsidiary during the 2001 Plan Year between
October 1, 2001 and December 31, 2001 and (c) is employed by the Sponsor or a Subsidiary on such
Vesting Date shall be credited with the number of days of service as is necessary to provide him
with a full Year of Service on such Vesting Date. Any employment with Grant Prideco, Inc. or its
affiliates before April 15, 2005, shall be treated as employment with the Sponsor. Years of
service under the Weatherford International, Inc. Foreign Executive Deferred Compensation Stock
Plan shall be treated as Years of Service.

I-9

 

ARTICLE II

ELIGIBILITY

     The employees eligible to participate in the Plan include the key employees of the Sponsor and
each Subsidiary, who are in a select group of management or are highly compensated employees, as
determined by the Committee from time to time. The Committee shall notify each Participant of his
eligibility to participate in the Plan. Except as specified below, each Participant in the Plan
during a Plan Year shall continue to participate in the Plan unless the Committee shall have
notified the Participant prior to the beginning of the next Plan Year that he will not participate
in the Plan for that Plan Year. The Committee may at any time during a Plan Year notify a
Participant that he shall not participate in the Plan after the expiration of such Plan Year. A
former Participant who has been notified that he will no longer participate in the Plan, but who
remains in the employ of the Company, shall retain the balance in his Accounts under the terms of
the Plan, but no additional amounts shall be credited to his Accounts during the period in which he
is not an eligible Participant in the Plan.

II-1

 

ARTICLE III

DEFERRALS AND BENEFIT ACCRUALS

     3.1 Basic Benefit Accrual. Subject to Section 3.4, the Company shall accrue an amount for the
benefit of each Participant equal to 71/2 percent of the Participant’s Compensation for the Plan
Year.

     3.2 Deferral Election. A Participant may elect, within 30 days of notification that he is
first eligible to participate in the Plan, and thereafter not later than December 1 preceding the
next Plan Year, the percentage, if any, of his Compensation that is to be deferred under the Plan.
A Participant may defer a minimum of one percent but not more than 71/2 percent (in 1/2 percent
increments) of his Compensation for the Plan Year. A Participant may only defer Compensation that
has not yet been paid to him. Prior to the election period the Committee shall notify all eligible
Participants of their right to make a deferral election. Once an election has been made as to the
percentage to be deferred, it becomes irrevocable for the Plan Year. The election to defer a
percentage of Compensation shall be effective only upon the timely receipt by the Committee of the
Participant’s percentage deferral election on such form as will be determined by the Committee from
time to time. If a timely election form is not received, the Participant shall be deemed to have
elected not to defer any part of his Compensation for that Plan Year. Except with respect to the
election by a newly eligible Participant as described above, if the Committee fails to receive a
properly filed election form on or prior to December 1 of the year immediately preceding the Plan
Year to which the election applies, revoking or modifying a prior election, the prior election
shall remain in effect. An election to defer for one Plan Year shall remain effective for
subsequent Plan Years until modified or revoked in accordance with this Section 3.2.

III-1

 

     3.3 Company Match Accrual. Subject to Section 3.4, the Company shall award each Participant
who elects to defer a portion of his Compensation under the Plan with an amount equal to 100
percent of the amount that is deferred by him.

     3.4 Reduction of Accruals. The Committee may reduce the percentage of the Basic Benefit
accrual and/or the Company Match accrual upon written notice to a Participant. Such reduction
shall apply only as to Plan Years following such notice, or in the case of a new Participant,
beginning on the date that the Participant first receives credit under Section 3.1, 3.2 or 3.3.

III-2

 

ARTICLE IV

ACCOUNT

     4.1 Establishing a Participant’s Account. The Committee shall establish an Account for each
Participant in a special Deferred Compensation Ledger which shall be maintained by the Company.
The Account shall reflect the amount of the Company’s obligation to the Participant at any given
time.

     4.2 Basic Benefit Account. The Basic Benefit shall be credited to each Participant’s Basic
Benefit Account as of the last day of each month of each Plan Year for the accrual attributable to
Compensation paid during that month.

     4.3 Deferral Account. The amount deferred by a Participant, if any, shall be credited to each
Participant’s Deferral Account as of the last day of each month in which the Participant would have
received the amount deferred but for his election to defer.

     4.4 Company Match Account. The Company Match shall be credited to each Participant’s Company
Match Account coincident with the allocation of the Participant’s Deferral to the Participant’s
Deferral Account.

     4.5 Gauge for Determining Benefits. Except as specified in Section 4.6, the Basic Benefit,
Deferral and Company Match described in Sections 4.2, 4.3 and 4.4, shall be deemed to be credited
in non-monetary units equal to the number of whole Common Shares that could have been purchased at
a price equal to the average closing sale price of a Common Share during the calendar month for
which the credit is made as reported by the principal national securities exchange on which the
Common Shares are then listed, if the Common Shares are listed on a national securities exchange,
or the average of the bid and asked price of a Common Share during such month as reported in the
National Association of Securities Dealers Automated Quotation National Market System (or successor
system) listing if the Common Shares are not

IV-1

 

then listed on a national securities exchange, provided that if no such closing price or
quotes are so reported during that month or if, in the discretion of the Committee, another means
of determining the fair market value of the Common Shares for such month shall be necessary and
advisable, the Committee may provide for another means of determining such value, and in monetary
units for any amount that is less than the value of a whole share. Any monetary unit credited to
an Account will be added to the next such amount credited to the Account and converted into a
non-monetary unit as quickly as possible. The value of each unit credited to an Account and
therefore the ultimate value of the deferred compensation payable to each Participant will increase
or decrease in proportion to the change in the value of a Common Share between the date of the
initial crediting of a unit and the date that the unit is valued for distribution under Article VI
of the Plan.

     4.6 Adjustments for the Grant Spin-Off and Grant Merger. Following the Grant Spin-Off, each
Participant’s Account was deemed credited with one non-monetary unit equal to one share of Grant
Stock for every one non-monetary unit equal to one share of common stock of the Sponsor that was
deemed to be credited to his Account as of the date of the Grant Spin-Off or subsequently credited
to his Account for Compensation earned through the date of the Grant Spin-Off. Effective April
22, 2008, units equal to shares of Grant Stock deemed credited to Participants’ Accounts were
converted into a certain number of units equal to NOV Shares. Upon the Grant Merger, the Committee
credited to a Participant’s Account non-monetary units equal to NOV Shares in an amount equal to
the number of units representing shares of Grant Stock credited to the Participant’s Account
multiplied by .781546.

IV-2

 

ARTICLE V

VESTING

     5.1 Deferrals. A Participant shall have a 100 percent nonforfeitable interest in his
Deferrals under the Plan at all times. A Participant will also have a 100 percent nonforfeitable
interest in any increase or decrease in the Deferral as a result of the change in the value of the
non-monetary units after his Deferral has been initially credited.

     5.2 Basic Benefit and Company Match. Upon his Retirement, death or Disability, a Participant
will have a 100 percent nonforfeitable interest in the Basic Benefit and Company Match credited to
his Account together with any increase or decrease in the accruals as a result of the change in the
value of the non-monetary units after they have been initially credited, except for the events of
forfeiture described in Section 6.6. In addition, a Participant’s interest in the Basic Benefit
and Company Match credited to his Account together with any increase or decrease in the accruals as
a result of the change in the value of the non-monetary units after they have been initially
credited shall vest on the Vesting Date at the rate set out in the vesting schedule below, subject
to earlier vesting upon the occurrence of a Change of Control as provided in this Section 5.2, or
upon termination of the Plan as provided in Section 9.3, or pursuant to Section 11.9, except for
events of forfeiture described in Section 6.6.

	 	 	 	 	 
	Completed Years of Service	 	 
	   As of the Vesting Date 	 	Percentage Vested
	Less than one year
	 	 	0	 
	One but less than two
	 	 	20	 
	Two but less than three
	 	 	40	 
	Three but less than four
	 	 	60	 
	Four but less than five
	 	 	80	 
	Five or more
	 	 	100	 

V-1

 

     Upon the occurrence of a Change of Control, the Basic Benefit and Company Match credited to a
Participant’s Account together with any increase or decrease in the accruals as a result of the
rise in the value of the non-monetary units after they have been initially credited will, to the
extent not previously vested, be fully and immediately 100% vested.

V-2

 

ARTICLE VI

DISTRIBUTIONS

     6.1 Death. Upon the death of a Participant, the Participant’s Beneficiary or Beneficiaries
shall receive the value of the amounts credited to the Participant’s Accounts in the Deferred
Compensation Ledger determined under Section 6.8, and the distribution shall be made in Common
Shares. Notwithstanding the foregoing, to the extent that NOV Shares were deemed credited to the
Participant’s Account in connection with the Grant Merger, the Committee may cause NOV Shares to be
distributed to his Beneficiary or Beneficiaries. The distribution shall be made within 30 days
after the Participant’s death.

     Each Participant, upon notification of his participation in the Plan, shall file with the
Committee a designation of one or more Beneficiaries to whom distributions otherwise due the
Participant shall be made in the event of his death prior to the distribution of the amount
credited to his Accounts in the Deferred Compensation Ledger. The designation will be effective
upon receipt by the Committee of a properly executed form which the Committee has approved for that
purpose. The Participant may from time to time revoke or change any designation of Beneficiary by
filing another approved Beneficiary designation form with the Committee. If there is no valid
designation of Beneficiary on file with the Committee at the time of the Participant’s death, or if
all of the Beneficiaries designated in the last Beneficiary designation have predeceased the
Participant or otherwise ceased to exist, the Beneficiary will be the Participant’s spouse, if the
spouse survives the Participant, or otherwise the Participant’s estate. Any Beneficiary
designation that designates any person or entity other than the Participant’s spouse must be
consented to in writing by the spouse in a form acceptable to the Committee in order to be
effective.

VI-1

 

     6.2 Disability. Upon the Disability of a Participant while the Participant is employed by the
Company, the Participant shall receive the value of the amounts credited to the Participant’s
Accounts in the Deferred Compensation Ledger determined under Section 6.8, and the distribution
shall be made in Common Shares. Notwithstanding the foregoing, to the extent that units
representing NOV Shares were deemed credited to the Participant’s Account in connection with the
Grant Merger, the Committee may cause NOV Shares to be distributed to him. The distribution shall
be made within 30 days after the Participant incurs a Disability.

     6.3 Termination of Employment. Within 30 days of the termination a Participant’s employment
with the Company for any reason other than his death or his Disability, the Participant shall
receive the value of the Grandfathered Amounts credited to his Accounts in the Deferred
Compensation Ledger determined under Section 6.8. The distribution shall be made in Common Shares.
Notwithstanding the foregoing, to the extent that units representing NOV Shares were deemed
credited to the Participant’s Account in connection with the Grant Merger, the Committee may cause
NOV Shares to be distributed to him.

     6.4 Separation From Service. In addition to any amounts payable under Section 6.3, in the
event of the termination of a Participants employment with the Company (for any reason other than
death or Disability), he shall be entitled to receive the vested portion of the Section 409A
Amounts credited to his Accounts in the Deferred Compensation Ledger. The distribution of such
Section 409A Amounts shall be made within 30 days after the Participant’s Separation From Service
if the Participant is not a Specified Employee or on the date that is six months following his
Separation From Service is he is a Specified Employee. Any distribution under this Section 6.4
shall be made in Common Shares. Notwithstanding the foregoing, to the extent that units
representing NOV Shares were deemed credited to the Participant’s Account in

VI-2

 

connection with the Grant Merger, the Committee may cause NOV Shares to be distributed to him.
Any Section 409A Amounts credited to a Participant’s Accounts that are not vested at the time of
the Participant’s Separation From Service shall be forfeited.

     6.5 Specified Time. Notwithstanding any other provision of the Plan, if the death of the
Participant, the Disability of the Participant, the termination of employment of the Participant,
or the Separation From Service of the Participant, as applicable, does not occur before January 1,
2017, the amounts (including shares) then deemed credited to the Participant’s Accounts in the
Deferred Compensation Ledger determined under Section 6.8 shall be distributed to the Participant
on January 1, 2017 in Common Shares. Notwithstanding the foregoing, to the extent that units
representing NOV Shares were deemed credited to the Participant’s Account in connection with the
Grant Merger, the Committee may cause NOV Shares to the distributed to him.

     6.6 Forfeiture for Cause. If the Committee finds, after full consideration of the facts
presented on behalf of both the Company and a former Participant, that the Participant was
discharged by the Company for fraud, embezzlement, theft, commission of a felony, proven dishonesty
in the course of his employment by the Company which damaged the Company, or for disclosing trade
secrets of the Company, the entire amount credited to his Basic Benefit Account and Company Match
Account in the Deferred Compensation Ledger shall be forfeited even though it may have been
previously vested. The decision of the Committee as to the cause of a former Participant’s
discharge and the damage done to the Company shall be final. No decision of the Committee shall
affect the finality of the discharge of the Participant by the Company in any manner.

VI-3

 

     6.7 Responsibility for Distributions and Withholding of Taxes. The Committee shall furnish
information to the Company last employing the Participant concerning the amount and form of
distribution to any Participant entitled to a distribution so that the Company may make or cause
the rabbi trust to make the distribution required. It will also calculate the deductions from the
amount of the benefit paid under the Plan for any taxes required to be withheld by federal, state
or local government and will cause them to be withheld and paid to the appropriate authority. If a
Participant earns deferred compensation under the Plan while in the service of more than one
Company, each Company for which the Participant worked shall pay the amount attributable to the
period the Participant was in the service of that Company, except to the extent the Company paid an
amount to the Trust which was paid the Participant.

     6.8 Distribution Determination Date. For purposes of all distributions described in this
Article VI, the determination date shall be the date of the actual distribution to the Participant
or his Beneficiary, and the number of shares issued shall be equal to the vested non-monetary units
credited to the Participant’s Accounts.

VI-4

 

ARTICLE VII

ADMINISTRATION

     7.1 Committee Appointment. The Committee consisting of not less than two persons shall be
appointed by the Board of Directors. Each Committee member shall serve until his or her
resignation or removal. The Board of Directors shall have the sole discretion to remove any one or
more Committee members and appoint one or more replacement or additional Committee members from
time to time.

     7.2 Committee Organization and Voting. The Committee shall select from among its members a
chairman who shall preside at all of its meetings and shall elect a secretary without regard to
whether that person is a member of the Committee. The secretary shall keep all records, documents
and data pertaining to the Committee’s supervision and administration of the Plan. A majority of
the members of the Committee shall constitute a quorum for the transaction of business and the vote
of a majority of the members present at any meeting shall decide any question brought before the
meeting. In addition, the Committee may decide any question by a vote, taken without a meeting, of
a majority of its members. A member of the Committee who is also a Participant shall not vote or
act on any matter relating solely to himself.

     7.3 Powers of the Committee. The Committee shall have the exclusive responsibility for the
general administration of the Plan according to the terms and provisions of the Plan and shall have
all powers necessary to accomplish those purposes, including but not by way of limitation the
right, power and authority:

          (a) to make rules and regulations for the administration of the Plan;

          (b) to construe or interpret all terms, provisions, conditions and limitations of the Plan;

VII-1

 

          (c) to correct any defect, supply any omission or reconcile any inconsistency that may appear
in the Plan in the manner and to the extent it deems expedient to carry the Plan into effect;

          (d) to designate the persons eligible to become Participants;

          (e) to determine all controversies relating to the administration of the Plan, including but
not limited to:

               (1) differences of opinion arising between the Company and a Participant; and

               (2) any question it deems advisable to determine in order to promote the uniform
administration of the Plan for the benefit of all parties at interest; and

          (f) to delegate by written notice those clerical and recordation duties of the Committee, as
it deems necessary or advisable for the proper and efficient administration of the Plan.

     7.4 Committee Discretion. The Committee in exercising any power or authority granted under
the Plan or in making any determination under the Plan shall perform or refrain from performing
those acts using its sole discretion and judgment. Any decision made by the Committee or any
refraining to act or any act taken by the Committee in good faith shall be final and binding on all
parties and shall not be subject to de novo review.

     7.5 Annual Statements. The Committee shall cause each Participant to receive an annual
statement as soon as administratively feasible after the conclusion of each Plan Year containing a
statement of the Participant’s Accounts in the Deferred Compensation Ledger through the end of that
Plan Year. The statement shall include a report of the Basic Benefit, the Participant Deferral and
Company Match, if any, and the number of units credited to the Accounts for that Plan Year.

     7.6 Reimbursement of Expenses. The Committee shall serve without compensation for its
services but shall be reimbursed by the Sponsor for all expenses properly and actually incurred in
the performance of its duties under the Plan.

VII-2

 

ARTICLE VIII

ADOPTION BY SUBSIDIARIES

     8.1 Procedure for and Status After Adoption. Any Subsidiary may, with the approval of the
Committee, adopt the Plan by appropriate action of its board of directors. The terms of the Plan
will apply separately to each Subsidiary adopting the Plan and its Participants in the same manner
as is expressly provided for the Sponsor and its Participants except that the powers of the Board
of Directors and the Committee under the Plan shall be exercised by the Board of Directors alone.
The Sponsor and each Subsidiary that adopts the Plan shall bear the cost of providing plan benefits
for its own Participants. It is intended that the obligation of the Sponsor and each Subsidiary
with respect to its Participants shall be the sole obligation of the Company that is employing the
Participant and shall not bind any other Company.

     8.2 Termination of Participation By Adopting Subsidiary. Any Subsidiary that adopts the Plan
may, by appropriate action of its board of directors, terminate its participation in the Plan. The
Committee may, in its discretion, also terminate a Subsidiary’s participation in the Plan at any
time. The termination of the participation in the Plan by a Subsidiary shall not, however, affect
the rights of any Participant who is working or has worked for the Subsidiary as to amounts and/or
units previously standing to his credit in his Accounts in the Deferred Compensation Ledger.

VIII-1

 

ARTICLE IX

AMENDMENT AND/OR TERMINATION

     9.1 Amendment or Termination of the Plan. The Board of Directors may amend or terminate the
Plan at any time by an instrument in writing without the consent of any adopting Company or any
Participant.

     9.2 No Retroactive Effect on Awarded Benefits. No amendment shall affect the rights of any
Participant to the amounts and/or units then standing to his credit in his Accounts in the Deferred
Compensation Ledger. However, the Board of Directors shall retain the right to change at any time
and in any manner the method of calculating all Basic Benefits to be accrued in the future, the
vesting schedules, all amounts deferred by a Participant and all amounts matched by the Company and
the gauge to be used to determine future increases or decreases in amounts accrued or deferred
after the date of the amendment, if it has been announced to the Participants.

     9.3 Effect of Termination. If the Plan is terminated, all amounts of Basic Benefits accrued
by the Company, deferred by Participants and matched by the Company and credited to a Participant’s
Accounts shall immediately vest as if the Participant were entitled to and did retire on the date
the Plan terminated. Distribution of Grandfathered Amounts would then commence in accordance with
Section 6.3. However, the forfeiture provisions of Section 6.6 would continue to apply until the
actual date of distribution. Distribution of Section 409A Amounts shall not be accelerated
pursuant to the termination of the Plan.

IX-1

 

ARTICLE X

PAYMENT

     10.1 Payments Under This Agreement Are the Obligation of the Company. The Company shall be
liable for all benefits due the Participants under the Plan.

     10.2 Payments May Be Made to a Rabbi Trust. It is specifically recognized by both the Company
and the Participants that under all circumstances, the rights of the Participants to the assets
held in the trust, if any, shall be no greater than the rights expressed in this agreement.
Nothing contained in the trust agreement which creates the trust shall constitute a guarantee by
any Company or the Parent that the amounts transferred by such Company to the trust shall be
sufficient to pay any benefits under the Plan or would place the Participant in a secured position
ahead of judgment and/or general creditors should the Company or the Parent become insolvent or
bankrupt. Any trust agreement prepared under the Plan must specifically set out these principles
so it is clear in that trust agreement that the Participants in the Plan are only unsecured general
creditors of the Company and the Parent in relation to their benefits under the Plan.

     10.3 Participants Must Rely Only on the General Credit of the Company. It is also
specifically recognized by both the Company and the Participants that the Plan is only a general
corporate commitment and that each Participant must rely upon the general credit of the Company and
the Parent for the fulfillment of its obligations under the Plan. Under all circumstances the
rights of Participants to any asset held by the Company or the Parent shall be no greater than the
rights expressed in the Plan. Nothing contained in the Plan shall constitute a guarantee by the
Company or the Parent that the assets of the Company or the Parent will be sufficient to pay any
benefits under the Plan or would place the Participant in a secured position ahead of general
creditors and judgment creditors of the Company or the Parent. Although the Company has
established or become a signatory to a rabbi trust to accumulate assets to fulfill its

X-1

 

obligations under the Plan, the maintenance of the Plan and the rabbi trust shall not create
any lien, claim, encumbrance, right, title or other interest of any kind in any Participant in any
asset held by the Company or the Parent, contributed to any trust created, or otherwise be
designated to be used for payment of any of its obligations created in this agreement. No specific
assets of the Company or the Parent have been or will be set aside, or will be transferred to the
trust or will be pledged for the performance of the Company’s and the Parent’s obligations under
the Plan which would remove those assets from being subject to the general creditors and judgment
creditors of the Company or the Parent.

     10.4 Plan Unfunded. It is intended that the Plan shall be unfunded for tax purposes and for
purposes of Title I of ERISA.

X-2

 

ARTICLE XI

MISCELLANEOUS

     11.1 Limitation of Rights. Nothing in the Plan will be construed:

          (a) to give any employee of any Company any right to be designated a Participant in the Plan;

          (b) to give a Participant any right with respect to the Basic Benefit accrued, the Deferral,
or the Company Match accrued except in accordance with the terms of the Plan;

          (c) to limit in any way the right of the Company to terminate a Participant’s employment with
the Company at any time;

          (d) to evidence any agreement or understanding, expressed or implied, that the Company will
employ a Participant in any particular position or for any particular remuneration; or

          (e) to give a Participant or any other person claiming through him any interest or right under
the Plan other than that of any unsecured general creditor of the Company.

     11.2 Distribution to Minor or Incapacitated Person. If the Committee determines that any
person to whom a payment is due is a minor or unable to care for his affairs because of physical or
mental disability, it shall have the authority to cause his payments under the Plan to be made to
his parent, legal guardian, spouse, brother, sister or other person whom the Committee determines.
The Committee shall not be responsible to oversee the application of those payments. Payments made
pursuant to this power shall be a complete discharge of all liability under the Plan and the
obligations of the Company and the Committee.

     11.3 Nonalienation of Benefits. No right or benefit provided in the Plan shall be
transferable by the Participant except, upon his death, to a named Beneficiary as provided in the
Plan. No right or benefit under the Plan shall be subject to anticipation, alienation, sale,
assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber, or charge the same shall be void. No right or benefit under the Plan shall in

 

 

any manner be liable for or subject to any debts, contracts, liabilities or torts of the
person entitled to such benefits.

     11.4 Reliance Upon Information. The Committee shall not be liable for any decision or action
taken in good faith in connection with the administration of the Plan. Without limiting the
generality of the foregoing, any decision or action taken by the Committee when it relies upon
information supplied it by any officer of the Company, the Company’s legal counsel, the Company’s
independent accountants or other advisors in connection with the administration of the Plan shall
be deemed to have been taken in good faith.

     11.5 Severability. If any term, provision, covenant or condition of the Plan is held to be
invalid, void or otherwise unenforceable, the rest of the Plan shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

     11.6 Notice. Any notice or filing required or permitted to be given to the Committee or a
Participant shall be sufficient if in writing and hand delivered or sent by U.S. mail to the
principal office of the Company or to the residential mailing address of the Participant. Notice
shall be deemed to be given as of the date of hand delivery or if delivery is by mail, as of the
date shown on the postmark.

     11.7 Gender and Number. If the context requires it, words of one gender when used in the Plan
will include the other genders, and words used in the singular or plural will include the other.

     11.8 Compliance with Section 409A. Except with respect to Grandfathered Amounts, the Plan
shall be operated in compliance with Section 409A and the provisions of the Plan shall be construed
in accordance with Section 409A. Except with respect to Grandfathered Amounts,

 

 

the terms of this Agreement reflect the manner in which the Plan has been operated in good
faith compliance with Section 409A since January 1, 2005.

     11.9 Freezing of the Plan. Notwithstanding any other provisions of the Plan to the contrary,
effective as of December 31, 2008, no further individuals shall become Participants in the Plan,
and there shall be no further benefit accruals or deferral of Compensation under the Plan after
December 31, 2008, unless and until the Board of Directors determines otherwise and any election to
defer such Compensation made prior to such date shall have no effect following such date. Further,
as of December 31, 2008, each Participant shall have a fully nonforfeitable and vested interest in
all amounts attributable to the Basic Benefit and Company Match credited to his Account as of
December 31, 2008.

     11.10 Governing Law. The Plan will be construed, administered and governed in all respects by
the laws of the State of Texas.

 

 

     IN WITNESS WHEREOF, the Sponsor has caused this Agreement to be executed on the 31st day of
December, 2008.

	 	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:
	 	President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}]]