Document:

exv10w4

Exhibit 10.4

WEATHERFORD INTERNATIONAL, INC.

FOREIGN EXECUTIVE

DEFERRED COMPENSATION STOCK PLAN

(As Amended and Restated

Effective December 31, 2008)

 

 

WEATHERFORD INTERNATIONAL, INC.

FOREIGN EXECUTIVE

DEFERRED COMPENSATION STOCK 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. Foreign Executive Deferred Compensation Stock Ownership Plan (the “Plan”) for a select group
of management and highly compensated employees;

     WHEREAS, pursuant to that certain Agreement and Plan of Merger dated as of May 8, 2002, among
Weatherford International, Inc., Weatherford International Ltd. and certain other parties, all
references in the Plan to shares of the common stock of Weatherford International, Inc., par value
U.S. $1.00 per share, were changed to references to Weatherford International Ltd. Common Shares,
par value U.S. $1.00 per share; 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.

FOREIGN EXECUTIVE

DEFERRED COMPENSATION STOCK 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	 
	Compensation
	 	 	1.11	 
	Corporate Transaction
	 	 	1.12	 
	Disability
	 	 	1.13	 
	Entity
	 	 	1.14	 
	Foreign Deferred Compensation Ledger
	 	 	1.15	 
	Grant Merger
	 	 	1.16	 
	Grant Spin-Off
	 	 	1.17	 
	Grant Stock
	 	 	1.18	 
	NOV
	 	 	1.19	 
	NOV Shares
	 	 	1.20	 
	Parent
	 	 	1.21	 
	Parent Board
	 	 	1.22	 
	Participant
	 	 	1.23	 
	Person
	 	 	1.24	 
	Plan
	 	 	1.25	 
	Plan Year
	 	 	1.26	 
	Retirement
	 	 	1.27	 
	Section 409A
	 	 	1.28	 
	Section 409A Amounts
	 	 	1.29	 
	Section 409A Exempt Amounts
	 	 	1.30	 
	Separation From Service
	 	 	1.31	 
	Specified Employee
	 	 	1.32	 
	Sponsor
	 	 	1.33	 
	Subsidiary
	 	 	1.34	 
	Vesting Date
	 	 	1.35	 
	Year of Service
	 	 	1.36	 
	 
	 	 	 	 
	ARTICLE II — ELIGIBILITY
	 	 	 	 

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WEATHERFORD INTERNATIONAL, INC.

FOREIGN EXECUTIVE

DEFERRED COMPENSATION STOCK PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Section	 
	ARTICLE III — BASIC BENEFIT ACCRUALS
	 	 	 	 
	General Basic Benefit Accruals
	 	 	3.1	 
	Reduction of Basic Benefit Accruals
	 	 	3.2	 
	 
	 	 	 	 
	ARTICLE IV — ACCOUNT
	 	 	 	 
	Establishing a Participant’s Account
	 	 	4.1	 
	Basic Benefit Account
	 	 	4.2	 
	Gauge for Determining Benefits
	 	 	4.3	 
	Adjustments for the Grant Spin-Off and Grant Merger
	 	 	4.4	 
	 
	 	 	 	 
	ARTICLE V — VESTING
	 	 	 	 
	 
	 	 	 	 
	ARTICLE
VI — DISTRIBUTIONS
	 	 	 	 
	Death
	 	 	6.1	 
	Disability
	 	 	6.2	 
	Retirement
	 	 	6.3	 
	Termination Prior to Death, Disability or Retirement
	 	 	6.4	 
	Separation from Service
	 	 	6.5	 
	Specified Time
	 	 	6.6	 
	Forfeiture for Cause
	 	 	6.7	 
	Responsibility for Distributions and Withholding of Taxes
	 	 	6.8	 
	Distribution Determination Date
	 	 	6.9	 
	Reservation of Shares
	 	 	6.10	 
	 
	 	 	 	 
	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	 
	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	 

-ii-

 

WEATHERFORD INTERNATIONAL, INC.

FOREIGN EXECUTIVE

DEFERRED COMPENSATION STOCK PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Section	 
	ARTICLE X -
PAYMENT
	 	 	 	 
	Payments Under This Agreement Are the Obligation of the Company
	 	 	10.1	 
	Participants Must Rely Only on General Credit of the Company
	 	 	10.2	 
	 
	 	 	 	 
	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	 
	Governing Law
	 	 	11.9	 

-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 Account and any additional Accounts that the Committee considers
necessary:

     Basic Benefit Account — The Company’s accrual of 15 percent of Compensation for each
Participant, or such lesser amount as the Committee establishes pursuant to Section 3.2

     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 15 percent of the Participant’s Compensation, or such lesser amount as the Committee
establishes pursuant to Section 3.2.

     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) 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

I-1

 

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
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

I-2

 

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

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

I-3

 

     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 “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 for services performed outside the United States, 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 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 the United States of America Employee Retirement Income Security Act
of 1974, as amended (whether or not paid under a program that is subject to regulation under such
statute).

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

I-4

 

     1.13 “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 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
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.

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

     1.15 “Foreign Deferred Compensation Ledger” means the ledger maintained by the Committee for
each Participant which reflects the Basic Benefit credited to his Account.

     1.16 “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.

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

I-5

 

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

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

     1.20 “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.

     1.21 “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.

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

     1.23 “Participant” means a non-U.S. resident alien foreign employee of a Company who is
eligible for and is participating in the Plan.

     1.24 “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.

I-6

 

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

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

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

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

     1.29 “Section 409A Amounts” means amounts credited under the Plan other than Section 409A
Exempt Amounts.

     1.30 Section 409A Exempt 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
and amounts credited under the Plan that are otherwise not subject to Section 409A.

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

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

     1.33 “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.

     1.34 “Subsidiary” means any majority-owned foreign subsidiary of the Parent or any
majority-owned foreign subsidiary thereof, or any other foreign Entity in which the Parent owns,

I-7

 

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.

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

     1.36 “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 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. Executive Deferred Compensation Stock Ownership Plan shall be
treated as Years of Service.

I-8

 

ARTICLE II

ELIGIBILITY

     The employees initially eligible to participate in the Plan include the key foreign employees
of the Sponsor and each Subsidiary as determined by the Committee from time to time. The Committee
may change the eligibility requirements for participation in the Plan as it may determine is
appropriate or advisable from time to time in its sole discretion. 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 advise the Participant that he shall not participate in the Plan after 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 Account under the terms of
the Plan, but no additional amounts shall be credited to his Account under Section 4.2 during the
periods in which he is not a Participant.

II-1

 

ARTICLE III

BASIC BENEFIT ACCRUALS

     3.1 General Basic Benefit Accrual. Subject to Section 3.2, the Company shall accrue an amount
for the benefit of each Participant equal to 15 percent of the Participant’s Compensation for the
Plan Year.

     3.2 Reduction of Basic Benefit Accruals. The Committee may reduce the percentage of the Basic
Benefit 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.

III-1

 

ARTICLE IV

ACCOUNT

     4.1 Establishing a Participant’s Account. The Committee shall establish an Account for each
Participant in a special Foreign 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 Gauge for Determining Benefits. Except as specified in Section 4.4, the Basic Benefit
credits described in Section 4.2 shall 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 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.

IV-1

 

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.

     4.4 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

     Upon his Retirement, death or Disability, a Participant will have a 100 percent nonforfeitable
interest in the Basic Benefit 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 6.7. In addition, a
Participant’s interest in the Basic Benefit credited to his 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 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 Article V or upon termination of the Plan as provided in Section 9.3 and except for events
of forfeiture described in Section 6.7.

	 	 	 	 	 
	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	 

     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-1

 

ARTICLE VI

DISTRIBUTIONS

     6.1 Death. Upon the death of a Participant, the Participant’s Beneficiary shall receive the
value of the amounts credited to the Participant’s Accounts in the Foreign Deferred Compensation
Ledger determined under Section 6.9, 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 a Beneficiary 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 Foreign 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, the Participant shall receive the value
of the amounts credited to the Participant’s Accounts in the Foreign Deferred Compensation Ledger
determined under Section 6.9, 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 90 days after the Participant incurs a
Disability.

     6.3 Retirement. Upon the Retirement of a Participant, the Participant shall receive the value
of the Section 409A Exempt Amounts credited to his Accounts in the Foreign Deferred Compensation
Ledger determined under Section 6.9, 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 90 days after the
Participant’s Retirement.

     6.4 Termination Prior to Death, Disability or Retirement. Upon a Participant’s termination
from the employ of the Company prior to death, Disability or Retirement, the Participant shall
receive the portion of the Section 409A Exempt Amounts credited to his Accounts in the Foreign
Deferred Compensation Ledger, determined under Section 6.9, which is vested under Article V, 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 90 days after the Participant’s termination. Any amounts not then vested
shall be forfeited.

VI-2

 

     6.5 Separation From Service. In the event of the termination of a Participant’s employment
with the Company (for any reason other than death or Disability), he shall be entitled to receive
the portion of the Section 409A Amounts credited to his Accounts in the Foreign Deferred
Compensation Ledger, determined under Section 6.9, which is vested under Article V. The
distribution of such Section 409A Amounts shall be made within 30 days after the Participant’s
Separation From Service if he is not a Specified Employee or on the date that is six months
following the date of the Participant’s Separation From Service. Any distribution under this
Section 6.5 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. 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.

     6.6 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, then any Section 409A Amounts (including shares) deemed credited to the Participant’s
Accounts in the Deferred Compensation Ledger determined under Section 6.9 shall be distributed to
the Participant on January 1, 2017. 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.

     6.7 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

VI-3

 

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 Accounts in the Foreign
Deferred Compensation Ledger shall be forfeited even though it may have been previously vested
under Article V. 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.

     6.8 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 the
distribution required. It will also calculate the deductions, if any, from the amount of the
benefit paid under the Plan for any taxes required to be withheld by any government or similar
authority 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.

     6.9 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

 

     6.10 Reservation of Shares. A total of 100,000 Common Shares, as adjusted to reflect stock
splits since the first adoption of the Plan, have been reserved for issuance for distributions
under the Plan.

VI-5

 

ARTICLE VII

ADMINISTRATION

     7.1 Committee Appointment. The Committee which shall consist of not less than two members
shall be appointed by the Board of Directors. Each Committee member shall serve until his
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 Foreign Deferred Compensation Ledger through the end
of that Plan Year. The statement shall include a report of the Basic Benefit and the number of
units credited to the Participant’s Account for that Plan Year.

VII-2

 

     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-3

 

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 Foreign 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 Foreign
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, and the gauge to be used to determine future increases or decreases in amounts accrued
after the date of the amendment.

     9.3 Effect of Termination. If the Plan is terminated, all amounts of Basic Benefits accrued
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
Section 409A Exempt Amounts would then commence in accordance with Section 6.3. However, the
forfeiture provisions of Section 6.7 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 Participants Must Rely Only on General Credit of the Company. The Plan is only a general
corporate commitment, and 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 this Agreement. 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.

X-1

 

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 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,

XI-1

 

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. If any Participant or any Beneficiary becomes bankrupt or
attempts to anticipate, alienate, sell, assign, pledge, encumber or charge any right or benefit
under the Plan, that right or benefit shall, in the discretion of the Committee, cease. In that
event, the Committee may have the Company hold or apply the right or benefit or any part of it to
the benefit of the Participant or Beneficiary, his or her spouse, children or other dependents or
any of them in any manner and in any proportion the Committee believes to be proper in its sole and
absolute discretion, but is not required to do so.

     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 mail (postage prepaid)
to the principal office of the Company or to the residential mailing address of the

XI-2

 

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 Section 409A Exempt 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 Section 409A Exempt 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 Governing Law. The Plan will be construed, administered and governed in all respects by
the laws of the State of Texas of the United States of America.

XI-3

 

     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
	 	 

8exv10w5

Exhibit 10.5

WEATHERFORD INTERNATIONAL LTD.

DEFERRED COMPENSATION PLAN FOR

NON-EMPLOYEE DIRECTORS

(As Amended and Restated

Effective December 31, 2008)

 

 

WEATHERFORD INTERNATIONAL LTD.

DEFERRED COMPENSATION PLAN FOR

NON-EMPLOYEE DIRECTORS

(As Amended and Restated

Effective December 31, 2008)

     WHEREAS, Weatherford International, Inc., a Delaware corporation, previously established the
Weatherford International, Inc. Deferred Compensation Plan for Non-Employee Directors (the “Plan”)
on April 13, 2000, which provides deferred compensation for members of the Board of Directors of
Weatherford International Ltd., a Bermuda exempted company (the “Company”), who are not employees
of the Company, so as to retain loyalty and to offer a further incentive to them to maintain and
increase their standard of performance;

     WHEREAS, pursuant to that certain Agreement and Plan of Merger dated as of May 8, 2002, among
the Company, Weatherford International, Inc. and certain other parties, the Company assumed all
rights, duties and obligations of Weatherford International, Inc. under the Plan, the Company
assumed sponsorship of the Plan, the name of the Plan was changed to the “Weatherford International
Ltd. Deferred Compensation Plan for Non-Employee Directors,” all references in the Plan to
Weatherford International, Inc. were changed to references to Weatherford International Ltd. and
all references in the Plan to shares of the common stock of Weatherford International, Inc., par
value U.S. $1.00 per share, were changed to references to Weatherford International Ltd. common
shares, par value U.S. $1.00 per share;

     WHEREAS, pursuant to that certain Weatherford Employee Benefit Agreement dated as of April 21,
2008, among the Company, Weatherford International, Inc., a Delaware corporation, Grant Prideco,
Inc., a Delaware corporation (“GPI”), and National Oilwell Varco, Inc., a Delaware corporation
(“NOV”), the account of each Plan participant that is credited with units

 

 

representing shares of GPI common stock shall be deemed to be credited with a certain number
of units representing NOV common stock; and

     WHEREAS, the Company desires to amend and restate the Plan;

     NOW, THEREFORE, effective December 31, 2008, the Company adopts the amendment and restatement
of the Plan as follows:

-2-

 

WEATHERFORD INTERNATIONAL LTD.

DEFERRED COMPENSATION PLAN FOR

NON-EMPLOYEE DIRECTORS

1. Definitions.

     (a) “Administrative Committee” means a committee consisting of the duly elected Corporate
Secretary of the Company or, in the event the Corporate Secretary is a Participant, one or more
other persons appointed by the Board to administer the Plan who are not Participants.

     (b) “Board” means the Board of Directors of the Company.

     (c) “Company” 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.

     (d) “Company’s Assets” means assets (of any kind) owned by the Company, including, without
limitation, any securities of the Subsidiaries and any of the assets owned by the Subsidiaries.

     (e) “Compensation” means any retainer, meeting, or committee fee or any similar fee or
compensation to which a Non-Employee Director is entitled for services performed for the Company as
a Non-Employee Director.

     (f) “Corporate Transaction” means a reorganization, merger, amalgamation, consolidation,
scheme of arrangement, exchange offer, or similar transaction of the Company or any of its
Subsidiaries or the sale, transfer or other disposition of all or substantially all of the
Company’s Assets.

     (g) “Credited Shares” mean the Company’s common shares, U.S. $1.00 par value, which, for
accounting purposes only, are to be credited to a Participant’s Share Account from time to time.
At no time shall Credited Shares be considered as actual common shares of the Company and a
Participant shall have no rights as a stockholder of the Company with respect to the Credited
Shares.

     (h) “Deferred Amount” means Compensation deferred by a Participant under the Plan together
with all dividends or other amounts credited to a Participant’s Share Account or NOV Account
pursuant to the provisions of the Plan, including the value of any Credited Shares in the
Participant’s Share Account and any NOV Shares in the Participant’s NOV Account.

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

     (j) “GPI” means Grant Prideco, Inc., a Delaware corporation.

-3-

 

     (k) “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.

     (l) “Grant Account” means each account being administered for the benefit of a Participant
pursuant to Section 6.

     (m) “Grant Merger” means the merger of GPI into NOV Sub, Inc. pursuant to the Agreement and
Plan of Merger by and among NOV, NOV Sub, Inc. and GPI dated as of December 16, 2007.

     (n) “Grant Shares” means the shares of common stock of GPI, $.01 par value, which, for
accounting purposes only, were credited to a Participant’s Grant Account. At no time were Grant
Shares considered as actual shares of common stock of GPI and a Participant had no rights as a
stockholder of GPI with respect to the Grant Shares.

     (o) “Grant Spin-Off” means the distribution by Weatherford International, Inc. to its
stockholders of all the outstanding shares of stock of GPI.

     (p) “Market Value” means with respect to the Company’s common shares or GPI’s or NOV’s common
stock, as applicable, the mean between the high and low sales price per share (or average last bid
and asked price if applicable) of such common shares or common stock as reported by (i) the
automated quotation system of the National Association of Securities Dealers if such common shares
or common stock is not then listed on a national securities exchange or (ii) the principal national
securities exchange on which such common shares or common stock is listed if such common shares or
common stock is so listed, in each case as of the last trade day of each calendar month.

     (q) “Non-Employee Director” means any duly elected or appointed member of the Board who is not
an employee of the Company or of any subsidiary of the Company.

     (r) “NOV” means National Oilwell Varco, Inc., a Delaware corporation.

     (s) “NOV Account” means each account being administered for the benefit of a Participant
pursuant to Section 7.

     (t) “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 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 of NOV with respect to the NOV Shares.

     (u) “Participant” means any Non-Employee Director who elects hereunder to defer payment by the
Company of a portion of the Compensation to which he or she may be entitled and any former
Participant with an account under the Plan.

     (v) “Plan” means the Weatherford International Ltd. Deferred Compensation Plan for
Non-Employee Directors set forth in this document as it may be amended from time to time.

-4-

 

     (w) “Section 409A” means section 409A of the Internal Revenue Code of 1986, as amended, and
the Department of Treasury rules and regulations issued thereunder.

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

     (y) “Share Account” means each account being administered for the benefit of a Participant
pursuant to Section 5.

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

2. Administration.

     The Plan shall be administered by the Administrative Committee which shall have the authority
to construe and interpret the Plan, and to establish or adopt rules, regulations and forms relating
to the administration of the Plan. The Administrative Committee shall have no authority to add to,
delete from or modify the terms of the Plan without the prior approval of the Board. All actions
and determinations by the Board with respect to the Plan shall be required to be approved by a
majority of the members thereof that are not then participating in the Plan and who have not
participated in the Plan during the 12-month period immediately preceding such action. Neither the
Administrative Committee nor any member of the Board shall be liable for any act or determination
made in good faith. Any action or decision under this Section 2 shall be binding upon all
Participants.

3. Election to Defer Compensation.

     (a) Each Non-Employee Director may from time to time execute and deliver to the Administrative
Committee an appropriate election form prescribed by the Administrative Committee designating a
portion of the Non-Employee Director’s future Compensation to be deferred under the Plan up to a
maximum of 7.5 percent of such Compensation. The election form for a calendar year must be
delivered to the Administrative Committee by the December 31st immediately preceding such calendar
year. A deferral election for a calendar year is irrevocable as of December 31 immediately
preceding the calendar year. Except as otherwise provided in the last sentence of this
Section 3(a), a Non-Employee Director may make or change an election for future deferrals of
Compensation to be effective the first day of any subsequent calendar year, by executing and
delivering to the Administrative Committee such new election or change in election prior to the
first day of such calendar year, in the form and within the time period prescribed by the
Administrative Committee. Any such change shall be effective only to designated Compensation
earned on or after the first day of the calendar year next following the year in which the election
form is received by the Administrative Committee. Each such election must also irrevocably fix the
time upon which the distributions to the Participant under the Plan are to be made or begin as
provided in Section 8 hereof. Notwithstanding any provision herein to the contrary, a Non-Employee
Director who first becomes eligible to participate in the Plan on other than the first day of a
calendar year may elect

-5-

 

to make prospective deferrals of Compensation by effecting, within 30 days after the date he
first becomes eligible to participate and within the time period prescribed by the Administrative
Committee, a deferral election in the form prescribed by the Administrative Committee.

     (b) In the event a Participant elects to defer a portion of his Compensation under the Plan
that is equal to or greater than five percent of his Compensation, the Company shall, during the
period during which the Participant’s Compensation is being deferred, make an additional credit to
the Participant’s Share Account in an amount equal to the sum of (i) 7.5 percent of the
Participant’s Compensation during the period during which the Participant’s Compensation is being
deferred and (ii) a percentage of such Compensation equal to the percentage of Compensation then
being deferred by the Participant under the Plan up to a maximum of 7.5 percent of the
Participant’s Compensation.

     (c) Each election to defer Compensation by a Participant for a calendar year shall become
effective as of the first day of a calendar year (or, for an initial year of eligibility, such
later date authorized in Section 3(a)) immediately following the date the election is effected by
the Participant. With respect to a Non-Employee Director who first becomes a Non-Employee Director
on other than the first day of a calendar year, any such Participant’s election to defer
Compensation pursuant to Section 3(a) shall apply only for the portion of such calendar year
commencing with the date of the election after he first becomes a Non-Employee Director and ending
on the last day of such calendar year. A Participant election to defer Compensation shall remain
in force and effect for the entire (or partial, if applicable) calendar year to which such election
relates and, if so elected by the Participant, for all subsequent calendar years until changed in
accordance with the terms of the Plan. A deferral election for a calendar year is irrevocable as
of December 31 immediately prior to the calendar year. The amount, if any, of the Company’s
additional credit to a Participant’s Share Account shall be adjusted effective as of the effective
date of each new election under the Plan by a Participant.

     (d) Notwithstanding any provision of the Plan to the contrary, pursuant to Section 11, a
Non-Employee Director may not defer under the Plan any portion of his Compensation for services
rendered after December 31, 2008 unless and until the Board determines otherwise and any election
prior to such date shall have no effect following such date.

4. Accounting.

     (a) The Company shall establish on its books appropriate bookkeeping accounts for each
Participant that will accurately reflect the Deferred Amount of each Participant, including the
number of Credited Shares in the Participant’s Share Account and the number of NOV Shares in the
Participant’s NOV Account.

     (b) The Administrative Committee shall furnish each Participant with a statement of the
Deferred Amount, including the number of Credited Shares in the Participant’s Share Account and the
number of NOV Shares in the Participant’s NOV Account, as of the end of each calendar year promptly
following the end of each calendar year.

-6-

 

5. Share Account.

     (a) Each Share Account shall consist of the cash amounts credited in respect of a specific
election to defer Compensation and the Credited Shares into which prior credited amounts in the
Share Account have been converted. Except as provided in this Section 5, any cash amount credited
to a Share Account in a calendar month shall be converted, as of the end of that calendar month,
into the maximum whole number of Credited Shares that the amount so credited would have purchased
at the then Market Value.

     (b) As of the end of the calendar month during which the Company pays any dividend on its
common shares, either in cash or property other than its common shares, each Share Account shall be
credited with an amount equal to the cash dividend per share or the cash value per share (as
conclusively determined by the Board) of the dividend in property other than its common shares,
times the Credited Shares in the Share Account on the dividend record date. The amount so credited
will be converted into the maximum whole number of Credited Shares that the amount so credited
could have purchased at the then Market Value. If the Company pays any stock dividend, the Share
Account shall be credited, as of the end of the calendar month during which the stock dividend is
paid, with a number of Credited Shares equal to the number of shares or fraction of a common share
paid per common share as a dividend times the Credited Shares in the Share Account on the dividend
record date.

     (c) If any distribution other than a dividend is made on, or with respect to, the Company’s
common shares, or in the event of a stock split, recapitalization, merger, consolidation or other
adjustment of the Company’s common shares, an appropriate adjustment shall be made to the number of
Credited Shares in a Share Account or to the cash credited to the Share Account on the same basis
as would have been made had the Credited Shares then actually been issued and outstanding on the
record date. The Board shall resolve any questions as to the appropriateness of any such
adjustment, including, but not limited to, values and exchange ratios, and its determination shall
be binding and conclusive.

     (d) All conversions into Credited Shares under Sections 5(a) through (c) shall be made in full
shares. Amounts not so converted shall be reflected as credited cash in a Share Account and shall
be added to any additional amounts of credited cash subsequently available for conversion;
provided, however, that in the event the Share Account reflects only credited cash and interest
thereon as provided in Section 5(e), the cash value of such account shall not be converted into
Credited Shares.

     (e) In the event the Company’s common shares are at any time not publicly traded so as to
permit the determination of the Market Value of the Credited Shares, such value shall be determined
based on such factors and criteria as the Board shall determine in good faith to be appropriate
under the circumstances. In the event the Company’s common shares shall have been converted into
or exchanged for cash, securities (other than the Company’s common shares) or other property by
virtue of a merger, consolidation, share exchange, reclassification or other similar transaction,
the value of such cash, securities and other property received by the holders of the Company’s
common shares per common share shall be fixed as the cash value for each Credited Share in each
Participant’s Share Account and such cash value shall be credited in such Share Account and
thereafter remain credited in the Participant’s Share Account until distributed

-7-

 

and such account shall thereafter be credited by an amount equal to the interest that would
have been earned thereon at an annual rate equal to the published prime lending rate at the
beginning of each calendar quarter at JPMorgan Chase & Co. computed quarterly until the cash value
of such account shall be distributed as provided in Section 8. In such event, any cash credits in
the Share Account shall not thereafter be converted into Credited Shares.

     (f) When a distribution is to commence pursuant to Section 8, a common share certificate(s)
representing the Credited Shares in the Share Account on the last business day of the month
preceding the date distribution is to commence, and the amount of any credited cash in such Share
Account, will be distributed as provided in Section 8, provided that all cash in the Share Account
shall be distributed at the time of the first distribution of common shares representing Credited
Shares. Any dividend or distribution made with respect to Credited Shares shall be distributed at
the same time(s) as such Credited Shares are distributed.

6. Grant Account.

     (a) Following the Grant Spin-Off, the Administrative Committee credited to a Participant’s
Grant Account one non-monetary unit equal to one Grant Share for every one non-monetary unit equal
to one share of Weatherford International, Inc. common stock that was deemed to be credited to his
account under the Plan as of the date of the Grant Spin-Off or subsequently credited to his account
under the Plan for Compensation earned through the date of the Grant Spin-Off.

     (b) Until April 22, 2008, as of the end of the calendar month during which GPI paid any
dividend on its common stock, either in cash or property other than its common stock, a
Participant’s Grant Account was credited with an amount equal to the cash dividend per share or the
cash value per share (as conclusively determined by the Board) of the dividend times the Grant
Shares in the Grant Account on the dividend record date. The amount so credited was converted into
the maximum whole number of Grant Shares that the amount so credited could have purchased at the
then Market Value.

7. NOV Account.

     (a) Effective April 22, 2008, the Grant Accounts were converted into NOV Accounts. Upon the
effective date of the Grant Merger, the Administrative Committee credited to a Participant’s NOV
Account non-monetary units equal to shares of NOV Stock in an amount equal to the number of units
representing Grant Shares credited to the Participant’s Grant Account multiplied by .781546.

     (b) As of the end of the calendar month during which NOV pays any dividend on its common
stock, either in cash or property other than its common stock, a Participant’s NOV Account shall be
credited with an amount equal to the cash dividend per share or the cash value per share (as
conclusively determined by the Board) of the dividend times the NOV Shares in the NOV Account on
the dividend record date. The amount so credited will be converted into the maximum whole number
of NOV Shares that the amount so credited could have purchased at the then Market Value. If NOV
pays any stock dividend, the NOV Account shall be credited, as of the end of the calendar month
during which the stock dividend is paid, with a number of NOV

-8-

 

Shares equal to the number of shares or fraction of a share of common stock paid per share of
common stock as a dividend times the NOV Shares in the NOV Account on the dividend record date.

     (c) If any distribution other than a dividend is made on, or with respect to, NOV’s common
stock, or in the event of a stock split, recapitalization, merger, consolidation or other
adjustment of NOV’s common stock, an appropriate adjustment shall be made to the number of NOV
Shares in a NOV Account or to the cash credited to the NOV Account on the same basis as would have
been made had the NOV Shares then actually been issued and outstanding on the record date. The
Board shall resolve any questions as to the appropriateness of any such adjustment, including, but
not limited to, values and exchange ratios, and its determination shall be binding and conclusive.

     (d) All conversions into NOV Shares under Sections 7(a) through (c) shall be made in full
shares. Amounts not so converted shall be reflected as credited cash in an NOV Account and shall
be added to any additional amounts of credited cash subsequently available for conversion;
provided, however, that in the event the NOV Account reflects only credited cash and interest
thereon as provided in Section 7(e), the cash value of such account shall not be converted into NOV
Shares.

     (e) In the event NOV’s common stock is at any time not publicly traded so as to permit the
determination of the Market Value of the NOV Shares, such value shall be determined based on such
factors and criteria as the Board shall determine in good faith to be appropriate under the
circumstances. In the event NOV’s common stock shall have been converted into or exchanged for
cash, securities (other than NOV’s common stock) or other property by virtue of a merger,
consolidation, share exchange, reclassification or other similar transaction, the value of such
cash, securities and other property received by the holders of NOV’s common stock per share of
common stock shall be fixed as the cash value for each NOV Share in each Participant’s NOV Account
and such cash value shall be credited in such NOV Account and thereafter remain credited in the
Participant’s NOV Account until distributed and such account shall thereafter be credited by an
amount equal to the interest that would have been earned thereon at an annual rate equal to the
published prime lending rate at the beginning of each calendar quarter at JPMorgan Chase & Co.
computed quarterly until the cash value of such account shall be distributed as provided in
Section 8. In such event, any cash credits in the NOV Account shall not thereafter be converted
into NOV Shares.

     (f) When a distribution is to commence pursuant to Section 8, a stock certificate(s)
representing the NOV Shares in the NOV Account on the last business day of the month preceding the
date distribution is to commence, and the amount of any credited cash in such NOV Account, will be
distributed as provided in Section 8, provided that all cash in the NOV Account shall be
distributed at the time of the first distribution of stock representing NOV Shares.

8. Distribution.

     (a) Except in the case of the death of a Participant, distribution shall commence as of the
first day of the calendar quarter coincident with or next following the time irrevocably

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specified by the Participant in the applicable election to defer. Such time shall be either a
specified date or the date on which the Participant incurs a Separation From Service from the
Company. If the time is a specified date (rather than the first day of the calendar quarter
coincident with or next following the date of the Participant’s Separation From Service with the
Company), the date must be not earlier than two years after the close of the calendar year for
which the Participant’s deferral election is effective.

     (b) Except in the case of the death of the Participant, distribution(s) of share or stock
certificate(s) representing the number of shares in the Share Account and the NOV Account shall be
either in the form of a single distribution of shares or in approximately equal quarterly
installments over a period not to exceed ten years as irrevocably selected by the Participant in
the applicable election to defer. In the event the Participant elects to receive the deferred
compensation of shares or stock through quarterly installments, the undistributed Credited Shares
and NOV Shares shall accrue dividends when paid which will be connected to additional Credited
Shares and NOV Shares in accordance with Plan terms. Cash in the Share Account and the NOV Account
representing fractional shares shall be distributed at the time of the next distribution of
Credited Shares and NOV Shares.

     (c) If for any reason the Participant does not validly elect a time of payment in his election
to defer for a year, effective as of the last day of the calendar year immediately preceding such
year he shall be deemed to have specified that his deferral for the year (and deemed dividends
thereon) shall be paid on the first day of the calendar quarter immediately following the date of
the Participant’s Separation From Service with the Company. If for any reason the Participant does
not validly elect a form of payment in his election to defer for a year, effective as of the last
day of the calendar year immediately preceding such year he shall be deemed to have specified that
his deferral for the year (and deemed dividends thereon) shall be paid in the form of a single
distribution (rather than in installments).

     (d) Notwithstanding any other provision of the Plan, if the Separation From Service of the
Participant or the specified date selected by the Participant, as applicable, does not occur before
January 1, 2017, any and all amounts then deemed credited to the Participant’s accounts under the
Plan shall be distributed to the Participant on January 1, 2017.

     (e) In the event of the Participant’s death prior to the date specified for his distribution
or after distribution to the Participant has commenced but before full distribution has been made,
the number of the then remaining shares in the Share Account and the NOV Account shall be paid in a
single distribution to the beneficiary designated by the Participant (on a form prescribed by the
Administrative Committee.) If the Participant fails to validly designate a beneficiary, his
surviving spouse shall be the Participant’s beneficiary, and if there is no surviving spouse or
other surviving beneficiary, the estate of the Participant shall be the Participant’s beneficiary.
In either such event the single distribution shall be made as of the first day of the calendar
quarter following the Participant’s date of death. A Participant may change the beneficiary from
time to time by filing with the Administrative Committee a new designation of beneficiary (on a
form prescribed by the Administrative Committee). No beneficiary designation or change in
beneficiary designation shall be effective unless received by the Administrative Committee prior to
the date of the Participant’s death.

-10-

 

9. Amendment and Termination.

     The Board may amend or terminate the Plan at any time; provided, however, (i) except as set
forth in Section 8(d), no amendment may be made that would accelerate or change the date of
distribution with respect to Compensation theretofore deferred, and (ii) any termination of the
Plan shall not affect the rights of Participants or beneficiaries to payment, in accordance with
Section 8, of amounts credited to Participants’ account hereunder at the time of such termination.

10. Miscellaneous.

     (a) The Plan does not create a trust in favor of a Participant, his beneficiary or
beneficiaries, or any other person claiming on his behalf, and the obligation of the Company is
solely a contractual obligation to make payments due hereunder. In this regard, the balance in any
account shall be considered a liability of the Company and the Participant’s right thereto shall be
the same as any unsecured general creditor of the Company. Neither the Participant nor any other
person shall acquire any right, title, or interest in or to any Deferred Amount outstanding under
the Plan other than the actual payment of such Deferred Amount in accordance with the terms of the
Plan.

     (b) 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 hereunder shall in any
manner be liable for or subject to the debts, contracts, liabilities or torts of the person
entitled to such benefit.

     (c) The terms of the Plan shall be binding upon the heirs, executors, administrators, personal
representatives, successors and assigns of all parties in interest.

     (d) The headings have been inserted for convenience only and shall not affect the meaning or
interpretation of the Plan.

     (e) Each Participant shall submit to the Administrative Committee his current mailing address.
It shall be the duty of each Participant to notify the Administrative Committee of any change of
address. In the absence of such notice, the Administrative Committee shall be entitled for all
purposes to rely on the address of the Participant last-known by the Administrative Committee.

     (f) Any amount payable to or for the benefit of a minor, an incompetent person or other person
incapable of receipting therefor shall be deemed paid to such person when paid to such person’s
guardian or to the party providing or reasonably appearing to provide for the care of such person,
and such payment shall fully discharge the Company and the Board with respect thereto.

     (g) Nothing in the Plan or any amendment thereto shall give a Participant, or any beneficiary
of a Participant, a right not specifically provided therein. Nothing in the Plan or any amendment
thereto shall be construed as giving a Participant the right to be retained as a member of the
Board.

-11-

 

     (h) If the context requires it, words of one gender when used in the Plan will include the
other gender, and words used in the singular or plural will include the other.

     (i) Except with respect to Grandfathered Amounts, the Plan shall be operated in compliance
with Section 409A and the provisions of the Plan, as amended and restated, 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.

     (j) The Plan will be construed, administered and governed in all respects by the laws of the
State of Texas.

11. Freezing of the Plan.

     Notwithstanding any other provisions of the Plan to the contrary, pursuant to the authority of
the Board set forth in Section 9, 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 determines
otherwise.

-12-

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed this 31st day of
December, 2008.

	 	 	 	 	 
	 	WEATHERFORD INTERNATIONAL LTD.

 	 
	 	By:  	 	/s/ Bernard J. Duroc-Danner
 	 
	 
	 	Title:  	 	Chief Executive Officer & President 	 
	 	 	 	 
	 

-13-

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