Document:

exv4w34

 

EXHIBIT
4.34

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of November 1, 2006, is entered into by and among
AMB Property Corporation, a Maryland corporation (the “Company”), AMB Property II, L.P., a Delaware
limited partnership (the “Partnership”), J.A. Green Development Corp., a New York corporation (the
“JA Green”) and JAGI, Inc., a Delaware corporation (“JAGI”) (JA Green and JAGI are hereinafter each
referred to as a “Unit Holder” and collectively referred to as the “Unit Holders”).

RECITALS

     WHEREAS, the Company, the Partnership and the Unit Holders as the parties which hold ownership
interests in certain industrial/warehouse/office properties (collectively, the “Property”) will
engage in certain transactions whereby the Unit Holders will contribute to the Partnership its
interests in the Property;

     WHEREAS, the Unit Holders will receive cash and units of limited partnership interests
(“Units”) in the Partnership in exchange for its interests in the Property;

     WHEREAS, pursuant to the Partnership Agreement (as defined below), Units owned by the Unit
Holders will be redeemable for cash or exchangeable for shares of the Company’s common stock, par
value $.01 per share (the “Common Stock”), upon the terms and subject to the conditions contained
therein; and

     WHEREAS, the Unit Holders are willing to sell/contribute its interests in the Property in
consideration of receiving certain registration rights provided for in this Agreement;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained,
and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Definitions. In addition to the definitions set forth above, the
following terms, as used herein, have the following meanings:

     “Affiliate” of any Person means any other Person directly or indirectly controlling or
controlled by or under common control with such Person. For the purposes of this definition,
“control” when used with respect to any Person, means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

     “Agreement” means this Registration Rights Agreement, as it may be amended, supplemented or
restated from time to time.

 

 

     “Articles of Incorporation” means the Articles of Incorporation of the Company as filed with
the Secretary of State of the State of Maryland on November 24, 1997, as the same may be amended,
modified or restated from time to time.

     “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in New York, New York or San Francisco, California are authorized by law to close.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time or any successor
statute thereto, as interpreted by the applicable regulations thereunder.

     “Commission” means the Securities and Exchange Commission.

     “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

     “Exchangeable Units” means Units which may be redeemable for cash or exchangeable for Common
Stock pursuant to Section 23.4 of the Partnership Agreement (without regard to any limitations on
the exercise of such exchange right as a result of the Ownership Limit Provisions, as defined
below).

     “Holder” means any Unit Holder who is the record or beneficial owner of any Registrable
Security or any assignee or transferee of such Registrable Security (including assignments or
transfers of Registrable Securities to such assignees or transferees as a result of the foreclosure
on any loans secured by such Registrable Securities) unless such Registrable Security is acquired
in a public distribution pursuant to a registration statement under the Securities Act or pursuant
to transactions exempt from registration under the Securities Act, in each such case where
securities sold in such action may be publicly resold without subsequent registration under the
Securities Act.

     “Incapacitated” shall have the meaning set forth in the Partnership Agreement.

     “Ownership Limit Provisions” mean the various provisions of the Articles of Incorporation set
forth in Article IV thereof restricting the ownership of Common Stock by certain Persons to
specified percentages of the outstanding Common Stock.

     “Partnership Agreement” means the Thirteenth Amended And Restated Agreement of Limited
Partnership of the Partnership, as such agreement may be amended, modified or restated from time to
time.

     “Person” means an individual or a corporation, partnership, limited liability company,
association, trust, or any other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

     “Registrable Securities” means shares of Common Stock of the Company at any time owned, either
of record or beneficially, by any Holder issued or issuable upon exchange of Exchangeable Units
until (i) a registration statement covering such securities has been declared effective by the
Commission and such shares have been sold or transferred pursuant to such effective registration
statement, (ii) such shares are sold under circumstances in which all of the

 

 

applicable conditions of Rule 144 are met or under which such shares may be sold pursuant to
Rule 144(k) under the Securities Act or (iii) such shares have been otherwise transferred in a
transaction that would constitute a sale thereof under the Securities Act, the Company has
delivered a new certificate or other evidence of ownership for such shares not bearing the
Securities Act restricted stock legend and such shares may be resold without subsequent
registration under the Securities Act. If as a result of any reclassification, stock dividends or
stock splits or in connection with a combination of shares, recapitalization, merger, consolidation
or other reorganization or other transaction or event, any capital stock, evidence of indebtedness,
warrants, options, rights or other securities of the Company (collectively “Other Securities”) are
issued or transferred to a Holder as a result of such Holder holding Registrable Securities held by
the Holder, references herein to Registrable Securities shall be deemed to include such Other
Securities.

     “Rule 144” means Rule 144 under the Securities Act, as amended from time to time (or any
successor statute).

     “Securities Act” means the Securities Act of 1933, as amended.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement under the Securities Act pursuant to this Agreement.

ARTICLE II

REGISTRATION RIGHTS

     SECTION 2.1 Shelf Registration. The Company shall prepare and file, and use its
reasonable efforts to cause to become effective, (i) on or as soon as practicable after the first
anniversary of the date the Units are issued (the “Issue Date”) a “shelf” registration statement
with respect to shares of Common Stock issuable upon the exchange of Exchangeable Units covering
the issuance by the Company and the resale thereof by the Holders on an appropriate form for an
offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act (the
“Initial Shelf Registration Statement”) and (ii) on or prior to the date (if any) that such Initial
Shelf Registration Statement or any Subsequent Registration Statement (as defined below) may no
longer be used for offers or sales of the Registrable Securities, a new “shelf” registration
statement with respect to the shares of Common Stock issuable upon the exchange of then outstanding
Exchangeable Units covering the issuance by the Company and the resale thereof by the Holders on an
appropriate form for an offering to be made on a continuous basis pursuant to Rule 415 under the
Securities Act (each, a “Subsequent Shelf Registration,” and collectively with the Initial Shelf
Registration Statement, the “Shelf Registration Statement”), and shall use its reasonable best
efforts to keep such Shelf Registration Statement continuously effective for an aggregate period
ending when all Registrable Securities covered by the Initial Shelf Registration Statement have
been issued and resold.

 

 

     SECTION 2.2 Registration Procedures; Filings; Information. In connection with any
Shelf Registration Statement under Section 2.1 hereof, the Company will use its best efforts to
effect the registration and the sale of such Registrable Securities in accordance with the intended
method of disposition thereof as quickly as practicable, and in connection therewith:

     (a)   The Company will as expeditiously as possible prepare and file with the Commission a
registration statement on any form for which the Company then qualifies or which counsel for the
Company shall deem appropriate and which form shall be available for the issuance and resale of the
Registrable Securities to be registered thereunder in accordance with the intended methods of
distribution thereof, and use its reasonable best efforts to cause such filed registration
statement to become and remain effective as provided in Section 2.1 hereof.

     (b)   The Company will, if requested, prior to filing a registration statement or prospectus or
any amendment or supplement thereto, furnish to each Selling Holder of the Registrable Securities
covered by such registration statement or prospectus copies of such registration statement or
prospectus or any amendment or supplement thereto as proposed to be filed, and thereafter furnish
to such Selling Holder one conformed copy of such registration statement, each amendment thereof
and supplement thereto (in each case including all exhibits thereto and documents incorporated by
reference therein; provided, that each such exhibit need only be provided once), and such number of
copies of the prospectus included in such registration statement (including each preliminary
prospectus) and such other documents as such Selling Holder may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by such Selling Holder.

     (c)   After the filing of the registration statement, the Company will promptly notify each
Selling Holder of Registrable Securities covered by such registration statement of any stop order
issued or threatened by the Commission and take all reasonable actions required to prevent the
entry of such stop order or to remove it if entered.

     (d)   The Company will use its reasonable best efforts to (i) register or qualify the
Registrable Securities under such other securities or blue sky laws of such jurisdictions in the
United States (where an exemption is not available) as any Selling Holder reasonably (in light of
such Selling Holder’s intended plan of distribution) requests and (ii) cause such Registrable
Securities to be registered with or approved by such other governmental agencies or authorities as
may be necessary by virtue of the business and operations of the Company and do any and all other
acts and things that may be reasonably necessary or advisable to enable such Selling Holder to
consummate the disposition of the Registrable Securities owned by such Selling Holder; provided
that the Company will not be required to (A) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this paragraph (d), (B) subject itself
to taxation in any such jurisdiction or (C) consent to general service of process in any such
jurisdiction.

     (e)   The Company will promptly notify each Selling Holder of such Registrable Securities, at
any time when a prospectus relating thereto is required to be delivered under the Securities Act,
of the occurrence of an event requiring the preparation of a supplement or amendment to such
prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such
prospectus will not contain an untrue statement of a material fact or

 

 

omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances then existing, not misleading and promptly make
available to each Selling Holder a reasonable number of copies of any such supplement or amendment.
The Company will prepare and file with the Commission such amendments (including post-effective
amendments) to the Shelf Registration Statement and such supplements to the prospectus as may be
necessary to keep such Shelf Registration Statement effective and to comply with the provisions of
the Securities Act with respect to the disposition of all securities covered by such Shelf
Registration Statement until such time as all of such securities have been disposed of in
accordance with the intended methods of disposition.

     (f)   The Company will make available for inspection by any Selling Holder of such Registrable
Securities and any attorney, accountant or other professional retained by any such Selling Holder
(collectively, the “Inspectors”), all financial and other records, pertinent corporate documents
and properties of the Company (collectively, the “Records”) as shall be reasonably necessary to
enable them to exercise their due diligence responsibility, and cause the Company’s officers,
directors and employees to supply all information reasonably requested by any Inspectors in
connection with such registration statement. Records which the Company determines, in good faith,
to be confidential and which it notifies the Inspectors are confidential shall not be disclosed by
the Inspectors unless (i) the disclosure of such Records is necessary to avoid or correct a
misstatement or omission in such registration statement or (ii) the release of such Records is
ordered pursuant to a subpoena or other order from a court of competent jurisdiction. Each Selling
Holder of such Registrable Securities agrees that information obtained by it as a result of such
inspections shall be deemed confidential and shall not be used by it as the basis for any market
transactions in the securities of the Company or its Affiliates or otherwise disclosed by it unless
and until such is made generally available to the public. Each Selling Holder of such Registrable
Securities further agrees that it will, upon learning that disclosure of such Records is sought in
a court of competent jurisdiction, give notice to the Company and allow the Company, at its
expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential.

     (g)   The Company will otherwise use its reasonable best efforts to comply with all applicable
rules and regulations of the Commission, and make available to its securityholders, as soon as
reasonably practicable, an earnings statement covering a period of twelve (12) months, beginning
within three (3) months after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of the
Commission promulgated thereunder (or any successor rule or regulation hereafter adopted by the
Commission).

     (h)   The Company will use its reasonable best efforts to cause all such Registrable Securities
to be listed on each securities exchange on which similar securities issued by the Company are then
listed.

     (i)   The Company will not be required to enter in an underwriting or other similar agreement
with respect to the disposition of Registrable Securities.

 

 

     The Company may require, as a condition precedent to the obligations of the Company under the
Agreement, each Selling Holder of Registrable Securities to promptly furnish in writing to the Company such information regarding such Selling Holder, the Registrable
Securities held by it and the intended methods of distribution of the Registrable Securities as the
Company may from time to time reasonably request and such other information as may be legally
required in connection with such registration.

     Each Selling Holder agrees that, upon receipt of any notice from the Company of, or such
Selling Holder obtains knowledge of, the happening of any event of the kind described in Section
2.2(e) hereof, such Selling Holder will forthwith discontinue disposition of Registrable Securities
pursuant to the registration statement and prospectus covering such Registrable Securities until
such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 2.2(e) hereof, and, if so directed by the Company, such Selling Holder will deliver to
the Company all copies, other than permanent file copies then in such Selling Holder’s possession,
of the most recent prospectus and each amendment thereof and supplement thereto covering such
Registrable Securities at the time of receipt of such notice. Each Selling Holder of Registrable
Securities agrees that it will immediately notify the Company at any time when a prospectus
relating to the registration of such Registrable Securities is required to be delivered under the
Securities Act of the happening of an event known to such Selling Holder as a result of which
information previously furnished by such Selling Holder to the Company in writing for inclusion in
such prospectus contains an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading.

     SECTION 2.3 Registration Expenses. In connection with any registration statement
required to be filed hereunder, the Company shall pay the following registration expenses incurred
in connection with the registration hereunder (the “Registration Expenses”): (i) all registration
and filing fees, (ii) fees and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities), (iii) printing expenses, (iv) internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), (v) the fees and expenses incurred in connection with the listing of the Registrable
Securities on each securities exchange on which similar securities issued by the Company are then
listed, (vi) reasonable fees and disbursements of counsel for the Company and customary fees and
expenses for independent certified public accountants retained by the Company and, (vii) the
reasonable fees and expenses of any special experts retained by the Company in connection with such
registration. The Company shall have no obligation to pay any underwriting fees, discounts or
commissions attributable to the sale of Registrable Securities, or any out-of-pocket expenses of
the Holders (or the agents who manage their accounts) or any transfer taxes relating to the
registration or sale of the Registrable Securities.

     SECTION 2.4 Indemnification by the Company. The Company agrees to indemnify and hold
harmless each Selling Holder, its officers, directors and agents, and each Person, if any, who
controls such Selling Holder within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act from and against any and all losses, claims, damages and liabilities caused by
any untrue statement or alleged untrue statement of a material fact contained in any registration
statement or prospectus relating to the Registrable Securities (as amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus,
or caused by any omission or alleged omission to state therein a

 

 

material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading, except insofar as such losses,
claims, damages or liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information furnished in writing to the Company by such
Selling Holder or on such Selling Holder’s behalf expressly for inclusion therein.

     SECTION 2.5 Indemnification by Holders of Registrable Securities. Each Selling Holder
agrees, severally but not jointly, to indemnify and hold harmless the Company, its officers,
directors and agents and each Person, if any, who controls the Company within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the
foregoing indemnity from the Company to such Selling Holder, but only with respect to information
relating to such Selling Holder furnished in writing by such Selling Holder or on such Selling
Holder’s behalf expressly for use in any registration statement or prospectus relating to the
Registrable Securities, or any amendment or supplement thereto, or any preliminary prospectus. In
case any action or proceeding shall be brought against the Company or its officers, directors or
agents or any such controlling person, in respect of which indemnity may be sought against such
Selling Holder, such Selling Holder shall have the rights and duties given to the Company, and the
Company or its officers, directors or agents or such controlling person shall have the rights and
duties given to such Selling Holder, by Section 2.4 hereof. The liability of the Selling Holder
pursuant to this Section 2.5 may, in no event, exceed the total price of the sales of Registrable
Securities giving rise to the indemnification obligation of such Selling Holder.

     SECTION 2.6 Conduct of Indemnification Proceedings. In case any proceeding (including
any governmental investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to Sections 2.4 or 2.5 hereof, such person (an “Indemnified
Party”) shall promptly notify the person against whom such indemnity may be sought (an
“Indemnifying Party”) in writing and the Indemnifying Party shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall
assume the payment of all fees and expenses. In any such proceeding, any Indemnified Party shall
have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall
have mutually agreed to the retention of such counsel, (ii) the Indemnifying Party has not employed
counsel to assume the defense of such proceeding within a reasonable time after receiving notice of
the commencement of the proceeding, or (iii) the named parties to any such proceeding (including
any impleaded parties) include both the Indemnified Party and the Indemnifying Party and
representation of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. It is understood that the Indemnifying Party shall
not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable
for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel) at any time for all such Indemnified Parties, and that all such fees and
expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the
Indemnified Parties, such firm shall be designated in writing by (i) in the case of Persons
indemnified pursuant to Section 2.4 hereof, by the gelling Holders which owned a majority of the
Registrable Securities sold under the applicable registration statement and (ii) in the case of
Persons indemnified pursuant to Section 2.5 hereof, the Company. The Indemnifying Party shall not
be liable for any settlement of any proceeding effected without its written consent,

 

 

but if settled with such consent, or if there be a final judgment for the plaintiff, the
Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any
loss or liability (to the extent stated above) by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an
Indemnifying Party to reimburse the Indemnified Party for fees and expenses of counsel as
contemplated by the third sentence of this paragraph, the Indemnifying Party agrees that it shall
be liable for any settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than thirty (30) Business Days after receipt by such Indemnifying
Party of the aforesaid request and (ii) such Indemnifying Party shall not have reimbursed the
Indemnified Party in accordance with such request prior to the date of such settlement. No
Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending or threatened proceeding in which any Indemnified Party is or could have
been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such
settlement includes an unconditional release of such Indemnified Party from all liability arising
out of such proceeding.

     SECTION 2.7 Contribution. If the indemnification provided for in Sections 2.4 or 2.5
hereof is unavailable to an Indemnified Party or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each such Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages or liabilities as between the Company
on the one hand and each Selling Holder on the other, in such proportion as is appropriate to
reflect the relative fault of the Company and of each Selling Holder in connection with such
statements or omissions which resulted in such losses, claims, damages or liabilities, as well as
any other relevant equitable considerations. The relative fault of the Company on the one hand and
of each Selling Holder on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company or such Selling
Holder, and the Company’s and the Selling Holder’s relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

     The Company and the Selling Holders agree that it would not be just and equitable if
contribution pursuant to this Section 2.7 were determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an Indemnified Party as a result of
the losses, claims, damages or liabilities referred to in Sections 2.4 and 2.5 hereof shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this Section 2.7, no Selling Holder shall
be required to contribute any amount in excess of the amount by which the total price at which the
securities of such Selling Holder to the public exceeds the amount of any damages which such
Selling Holder has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Selling Holder’s
obligations to contribute pursuant to this Section 2.7 are several in the proportion that the proceeds of the offering received by such Selling Holder bears to the
total proceeds of the offering received by all the Selling Holders and not joint.

 

 

     SECTION 2.8 Rule 144. The Company covenants that it will file any reports required to
be filed by it under the Securities Act and the Exchange Act and that it will take such further
action as any Holder may reasonably request, all to the extent required from time to time to enable
Holders to sell Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144, or (b) any similar rule or regulation
hereafter adopted by the Commission. Upon the request of any Holder, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements.

     SECTION 2.9 Holdback Agreements.

     (a)   If the Company determines in its good faith judgment that the filing of the Shelf
Registration Statement under Section 2.1 hereof or the use of any related prospectus would require
the disclosure of non-public material information that the Company has a bona fide business purpose
for preserving as confidential or the disclosure of which would impede the Company’s ability to
consummate a material transaction, and that the Company is not otherwise required by applicable
securities laws or regulations to disclose, upon written notice of such determination by the
Company, the rights of the Holders to offer, sell or distribute any Registrable Securities pursuant
to the Shelf Registration Statement or to require the Company to take action with respect to the
registration or sale of any Registrable Securities pursuant to the Shelf Registration Statement
shall be suspended until the earlier of (i) the date upon which the Company notifies the Holders in
writing that suspension of such rights for the grounds set forth in this Section 2.10(b) is no
longer necessary and (ii) 90 calendar days (“Delay Period”). The Company agrees to give such
notice as promptly as practicable following the date that such suspension of rights is no longer
necessary. The Company shall not be entitled to exercise a Delay Period for more than 90 calendar
days in the aggregate in any 12-month period.

     (b)   If all reports required to be filed by the Company pursuant to the Exchange Act have not
been filed by the required date after giving effect to any extension, or if the consummation of any
business combination by the Company has occurred or is probable for purposes of Rule 3-05 or
Article 11 of Regulation S-X under the Exchange Act, upon written notice thereof by the Company to
the Holders, the rights of the Holders to offer, sell or distribute any Registrable Securities
pursuant to the Shelf Registration Statement or to require the Company to take action with respect
to the registration or sale of any Registrable Securities pursuant to the Shelf Registration
Statement shall be suspended until the date on which the Company has filed such reports or obtained
and filed the financial information required by Rule 3-05 or Article 11 of Regulation S-X to be
included or incorporated by reference, as applicable, in the Shelf Registration Statement, and the
Company shall notify the Holders as promptly as practicable when such suspension is no longer
required.

ARTICLE III

TRANSFER RESTRICTIONS

     SECTION 3.1 Transfer of Common Stock. Each Unit Holder agrees that in no event will
it transfer, sell, assign, pledge, hypothecate or otherwise dispose of (each, a “Transfer”) any Registrable Securities other than pursuant to an effective registration statement or, if
requested by the Company, at the expense of such Unit Holder or its designee, such Unit Holder
shall furnish to the Company an opinion of counsel and such other information, reasonably
satisfactory to the Company to the effect that such Transfer may be consummated without
registration under the Securities Act.

 

 

     SECTION 3.2 Legend.

     (a) Unless Registrable Securities are issued pursuant to an effective registration statement,
all Registrable Securities shall bear legends in substantially the following form:

	 	 	THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”) AND, THEREFORE, MAY NOT BE TRANSFERRED, SOLD,
ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR (B) IF THE CORPORATION HAS BEEN
FURNISHED WITH A SATISFACTORY OPINION OF COUNSEL FROM THE HOLDER OF THE SHARES
REPRESENTED HEREBY, OR OTHER EVIDENCE SATISFACTORY TO THE CORPORATION, THAT SUCH
TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION IS EXEMPT
FROM REGISTRATION UNDER THE ACT AND STATE SECURITIES LAWS.

     (b) Any certificates for Registrable Securities shall also bear any other legend required by
any applicable state securities law and a legend regarding the ownership limitations set forth in
the Company’s Articles of Incorporation, as amended.

     (c) In addition, the Company shall make a notation regarding the applicable restrictions on
transfer of Registrable Securities in its stock records, and any such Registrable Securities shall
be transferred on the records of the Company only if transferred or sold in compliance with the
provisions of this Agreement.

ARTICLE IV

MISCELLANEOUS

     SECTION 4.1 Remedies. In addition to being entitled to exercise all rights provided
herein and granted by law, including recovery of damages, the Holders shall be entitled to specific
performance of the rights under this Agreement. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Agreement and hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate.

     SECTION 4.2 Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given without the prior written consent of the
Company and the Holders or any such Holder’s representative if any such Holder is Incapacitated.
No failure or delay by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy
consequent upon any breach thereof shall constitute a waiver of any such breach or any other
covenant, duty, agreement or condition.

 

 

     SECTION 4.3 Notices. All notices and other communications in connection with this
Agreement shall be made in writing by hand delivery, registered first-class mail, telex,
telecopier, or air courier guaranteeing overnight delivery:

     (1) if to any Unit Holder, initially to c/o J.A. Green Development Corp., 756 Port America
Place, Suite 800, Grapevine, Texas 76051 (Attention: General Counsel, or to such other address and
to such other Persons as the Unit Holders may hereafter specify in writing; and

     (2) if to the Company, initially at Pier 1, Bay 1, San Francisco, California 94111 (Attention:
General Counsel), or to such other address as the Company may hereafter specify in writing.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; when received if deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if telecopied; and
on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

     SECTION 4.4 Successors and Assigns. Except as expressly provided in this Agreement,
the rights and obligations of the Holders under this Agreement shall not be assignable by any
Holder to any Person that is not a Holder. This Agreement shall be binding upon the parties hereto
and their respective successors and assigns.

     SECTION 4.5 Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Each party shall become bound by this Agreement immediately upon affixing its signature
hereto. Counterparts hereof containing facsimile copy signatures shall have the same force and
effect as original signed counterparts.

     SECTION 4.6 Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York without regard to the choice of law
provisions thereof.

     SECTION 4.7 Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

     SECTION 4.8 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the registration rights granted by the Company with
respect to the Registrable Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

 

 

     SECTION 4.9 Headings. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

     SECTION 4.10 No Third Party Beneficiaries. Nothing express or implied herein is
intended or shall be construed to confer upon any person or entity, other than the parties hereto
and their respective successors and assigns, any rights, remedies or other benefits under or by
reason of this Agreement.

     SECTION 4.11 Survival. The indemnification provided for under this Agreement will (i)
remain in full force and effect regardless of any investigation made by or on behalf of the
indemnified party or any officer, director or controlling Person of such indemnified party, (ii)
survive the transfer of securities and (iii) survive the termination of this Agreement.

     SECTION 4.12 Authority. Each party represents to the other that this Agreement has
been duly authorized, executed and delivered by such party, is, assuming the due authorization,
execution and delivery of this Agreement by the other parties hereto, a legal, valid and binding
obligation of such party enforceable against such party in accordance with such party’s respective
terms except as such enforceability may be subject to the effects of bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting the rights of creditors and of
general principles of equity, and does not violate any provision of such parties’ organizational
documents or any material agreement or judicial order to which such party is subject.

INTENTIONALLY LEFT BLANK

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	AMB PROPERTY CORPORATION,

a Maryland corporation

 	 
	 	By:  	/s/John T. Meyer
 	 
	 	Its:  	 Senior Vice President
 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	AMB PROPERTY II, L.P.,

a Delaware limited partnership

 	 
	 	By  	Texas AMB I, LLC,
a Delaware limited liability company
 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	By: 	AMB Property Holding Corporation,

a Maryland corporation

its managing member

 	 
	 

	 	 	 	 	 
	 	By:  	/s/John T. Meyer
 	 
	 	Name:  	John T. Meyer
 	 
	 	Its:    	Senior Vice President
 	 
	 

	 	 	 	 	 
	 	J.A. GREEN DEVELOPMENT CORP.,

a New York corporation

 	 
	 	By:  	/s/ Daniel Green
 	 
	 	 	Daniel Green 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	JAGI, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Daniel Green
 	 
	 	 	Daniel Green 	 
	 	 	Presidentexv10w11

 

Exhibit 10.11

WEATHERFORD INTERNATIONAL LTD.

NONQUALIFIED EXECUTIVE RETIREMENT PLAN

Amended and Restated

     1. Establishment and Purpose of Plan. Weatherford International Ltd. hereby
establishes the Weatherford International Ltd. Nonqualified Executive Retirement Plan (this “Plan”)
set forth herein, effective as of June 1, 2003, and amended and restated as of February 22, 2007,
in recognition of the valuable services heretofore performed for it by Eligible Employees and to
encourage their continued employment. It is intended that this Plan be considered an unfunded
arrangement maintained primarily to provide deferred compensation, for a select group of management
or highly compensated employees, for purposes of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and the Internal Revenue Code of 1986, as amended (the “Code”).

     2. Definition of Terms. The following words and phrases when used herein, unless the
context clearly requires otherwise, shall have the following respective meanings:

     (a) Beneficiary: The person or persons who may become entitled to a benefit hereunder
in the case of a Participant’s death in accordance with the Designation of Beneficiary Form last
received by the Company from the Participant prior to his or her death.

     (b) Board: The Board of Directors of the Company.

     (c) Cause: Shall mean:

          (i) the willful and continued failure of the Participant to substantially perform the
Participant’s duties with 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 Participant), after a written demand for substantial performance is delivered to
the Participant by the Board which specifically identifies the manner in which the Participant has
not substantially performed the Participant’s duties, or

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

          No act, or failure to act, on the part of the Participant shall be considered “willful” unless
it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief
that the Participant’s action or omission was in the best interests of 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 CEO or of a more senior officer of the Company or based upon the
advice of counsel for the Company (which may be the General Counsel or other counsel employed by
the Company or its subsidiaries) shall be conclusively presumed to be done, or omitted to be done,
by the Participant in good faith and in the best interests of the Company. The termination of
employment of the Participant shall not be deemed to be for Cause unless and until there shall have
been delivered to the Participant 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 Participant, and the
Participant is given an opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Participant is guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

 

 

     (d) CEO: The Chief Executive Officer of the Company.

     (e) Change of Control: Shall be deemed to have occurred if the event set forth in any
one of the following paragraphs shall have occurred or is pending:

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

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

          (iii) the consummation of a 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 Plan, 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 Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Corporate Transaction beneficially own, directly or indirectly, more than 66 2/3 percent
of, respectively, the then outstanding common shares and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors (or other
governing body), as the case may be, of the entity resulting from such Corporate Transaction
(including, without limitation, an entity which as a result of such transaction owns the Company or
all or substantially all of the Company’s 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 Company Common Stock and the Outstanding
Company Voting Securities, as the case may be, (B) no Person (excluding any entity resulting from
such Corporate Transaction or any employee benefit plan (or related trust) of the Company or such
entity resulting from such Corporate Transaction) beneficially owns, directly or indirectly, 20
percent 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 of the members of the board of directors or other
governing body of the entity resulting from such Corporate Transaction were members of the
Incumbent Board at the time of the approval of such Corporate Transaction; or

2

 

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

     (f) Company: Weatherford International Ltd. and its Successors.

     (g) Company’s Assets: Assets (of any kind) owned by the Company, including, without
limitation, any securities of the Company’s Subsidiaries and any of the assets owned by the
Company’s Subsidiaries.

     (h) Compensation: The sum of (i) the Participant’s highest annual base salary paid
for personal services rendered to the Company or a Subsidiary in the last five-year period ending
on the applicable date and increased for any amounts that the Eligible Employee could have received
in cash in lieu of deferrals made pursuant to a cash or deferred arrangement or a cafeteria plan
described in Section 125 of the Code, plus (ii) the bonus amount (as set forth in the Participation
Agreement) potentially payable to a Participant under the Company’s management incentive plan for
such year or, if greater, the highest bonus (whether in cash or securities of the Company) earned
by or paid or granted to the Participant during any one of the last five calendar years ended prior
to the applicable date.

     (i) Corporate Transaction: A reorganization, merger, amalgamation, consolidation or
similar transaction of the Company or any of its subsidiaries or the sale, transfer or other
disposition of all or substantially all of the Company’s Assets.

     (j) Disability: The absence of the Participant from performance of the participant’s
duties with the Company on a substantial basis for 120 calendar days as a result of incapacity due
to mental or physical illness.

     (k) Early Retirement Date: The first day of the month coinciding with or next
following the date on which the Participant retires from employment by the Company or a Subsidiary
on or after attainment of age 55 and completion of 10 Years of Service.

     (l) Effective Date: June 1, 2003.

     (m) Eligible Employee: An individual who (i) is a member of a select group of
management of the Company or a Subsidiary and (ii) is designated by the CEO.

     (n) Good Reason: The occurrence of any of the following:

          (i) the assignment to the Participant of any position, authority, duties or responsibilities
inconsistent with the Participant’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by any employment agreement
between the Company and the Participant or as in effect prior to the assignment, or any other
action by 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 Company promptly after receipt of notice thereof
given by the Participant;

          (ii) any failure by the Company to comply with any of the provisions of this Plan (including,
without limitation, its obligations under by any employment agreement between the Company

3

 

and the Participant), other than an isolated, insubstantial and inadvertent failure not
occurring in bad faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Participant;

          (iii) any failure by the Company to continue to provide the Participant with benefits
currently enjoyed by the Participant under any of 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 Company which would directly or indirectly reduce any of such benefits
or deprive the Participant of any fringe benefits or perquisites currently enjoyed by the
Participant;

          (iv) the Company’s requiring the Participant to be based at any office or location other than
as provided in by any employment agreement between the Company and the Participant or the Company’s
requiring the Participant to travel on Company business to a substantially greater extent than
required immediately prior to the date hereof:

          (v) any purported termination by the Company of the Participant’s employment (including,
without limitation, any secondment of the Participant to a Subsidiary without the Participant’s
prior express agreement in writing);

          (vi) any failure by the Company to comply with and satisfy Section 23 of this Plan; or

          (vii) following a Change of Control, the giving of notice by the Company to the Participant
that his or her employment agreement with the Company shall not be extended or renewed.

          In the event of a Change of Control or other Corporate Transaction in which the Company’s
common shares cease to be publicly traded, “Good Reason” shall be deemed to exist upon the
occurrence of any of the events listed in clauses (i) — (vii) above and also in the event
Participant 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 Company or the corporation or other
entity surviving or resulting from such Corporate Transaction or (B) inconsistent with the
Participant’s position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities as contemplated by any employment agreement between the Company and the
Participant or as in effect prior to the assignment.

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

     (o) Normal Retirement Date: The first day of the month coinciding with or next
following the date on which the Participant retires from employment by the Company or a Subsidiary
on or after attainment of age 62 and completion of 10 Years of Service.

     (p) Participant: An Eligible Employee who elects to participate in the Plan in
accordance with Section 3.

     (q) Participation Agreement: A written notice filed by an Eligible Employee with the
Company in substantially the form attached hereto as Exhibit A, electing to participate in the Plan
and agreeing to the reduction under Section 3 and the other terms of the Plan.

4

 

     (r) 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 Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its Affiliates (as defined in Rule 12b-2
promulgated under Section 12 of the Exchange Act), (iii) an underwriter temporarily holding
securities pursuant to an offering by the Company of such securities, or (iv) a corporation or
other entity owned, directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

     (s) Plan: The Weatherford International Ltd. Nonqualified Executive Retirement Plan,
together with any and all amendments or supplements thereto.

     (t) Subsidiary: Any majority-owned subsidiary of the Company or any majority-owned
subsidiary thereof, or any other corporation, partnership, entity or business venture in which the
Company owns, directly or indirectly, a significant financial interest provided that the CEO
designates such corporation, partnership, entity or business venture to be a Subsidiary for the
purposes of this Plan.

     (u) Year of Service: Each 12-month period during continuous employment with the
Company or a Subsidiary as a common-law employee beginning on an Eligible Employee’s date of hire
and each anniversary thereof. Any period of less than 12 months during such continuous employment
that begins on the anniversary of an Eligible Employee’s date of hire and ends on his or her date
of retirement or termination of employment shall also be credited as one full Year of Service. All
periods of employment by the Company or a Subsidiary shall be taken into account and neither the
transfer of an Eligible Employee from employment by the Company to employment by a Subsidiary nor
the transfer of an Eligible Employee from employment by a Subsidiary to Employment by the Company
shall be deemed to be a termination of employment by the Eligible Employee. Moreover, the
employment of an Eligible Employee shall not be deemed to have been terminated because of his
absence from active employment on account of temporary illness or authorized vacation, or during
temporary leaves of absence from active employment granted by the Company or a Subsidiary for
reasons of professional advancement, education, health, or government service, or during military
leave for any period if the Eligible Employee returns to active employment within 90 days after the
termination of his military leave, or during any period required to be treated as a leave of
absence by virtue of (i) any enforceable employment or other agreement or (ii) any applicable law,
such as the federal Family and Medical Leave Act of 1993.

     3. Participation; Reduction of Salary; Years of Service; Years of Age; Payment
Election.

     (a) An Eligible Employee may irrevocably elect to participate in this Plan by filing a
Participation Agreement with the Company within 90 days after the Effective Date or, if later,
within 90 days after the individual becomes an Eligible Employee. An Eligible Employee who does
not file a Participation Agreement with the Company during the applicable 90-day period may not
subsequently elect to participate in the Plan.

     (b) Upon the filing of a Participation Agreement, Participant agrees to a reduction equal to
10% of the Participant’s annual base salary (as of the time of the filing of the Participation
Agreement).

     (c) For purposes of determining a Participant’s Years of Service under the Plan, the CEO may,
in his sole discretion, credit a Participant (excluding himself) with additional Years of Service.
In

5

 

addition, for purposes of determining any benefits payable under Sections 4 through 11 of this
Plan, upon termination of employment for any reason (except for termination by the Company for
Cause or voluntary termination by the Participant for any reason other than for Good Reason, death,
Disability or Retirement), each Participant shall be credited with an additional number of Years of
Service and years of age as set forth in the Participation Agreement.

     (d) When determining the benefits payable to a Participant, if a Participant’s actual age
(before adding any additional years) is 55 or older, then no additional years of age will be
credited to such Participant. If, however, a Participant’s actual age is 54 or less, then the
Participant will be credited with additional years of age under the terms of this Plan, provided
that when the Participant’s age (for purposes of determining the benefits payable under this Plan)
reaches 55 years, then no additional years of age will be credited to the Participant.

     (e) The election by a Participant to be paid his or her benefits under this Plan either as a
lump sum or a monthly payment for life shall be made in a written election filed with the Company
at least 12 months prior to the Participant’s termination of employment. If the Participant fails
to make any such election on a timely basis, the Participant’s benefits shall be paid as a lump
sum.

     4. Retirement Benefit.

     (a) The Company agrees that, from and after a Participant’s Early Retirement Date or
Normal Retirement Date, the Company shall pay as a retirement benefit (“Retirement Benefit”) to the
Participant a monthly benefit equal to one-twelfth of the product of (i) the annual benefit
percentage, as set forth in the Participation Agreement (“Annual Benefit Percentage”), multiplied
by (ii) the Participant’s Compensation in effect as of his or her Early Retirement Date or Normal
Retirement Date, as applicable, and multiplied by (iii) the Participant’s Years of Service, up to a
maximum amount equal to such Compensation multiplied by the maximum benefit percentage set forth in
the Participation Agreement (“Maximum Benefit Percentage”).

     (b) The Company shall pay the Retirement Benefit to the Participant for his or her
life and shall commence the payment of such benefit as of the first day of the month coinciding
with or next following the Participant’s termination of employment; provided, however, that the
Participant may elect to receive, in lieu of a monthly benefit payable for life, a lump sum payment
that is equivalent to the monthly benefit, as determined on the basis of reasonable assumptions
established by the Company (“Plan Assumptions”), and such lump sum shall be payable to the
Participant by the Company within 15 days after the date of termination.

     (c) If a Participant elects to receive his or her Retirement Benefit on a monthly basis for
life, then, upon the death of the Participant after the Early Retirement Date or Normal Retirement
Date, as applicable, the Retirement Benefit will be paid to the Participant’s Beneficiaries as set
forth in Section 8.

     5. Disability Benefit.

     (a) In the event of a Participant’s termination of employment with the Company or a
Subsidiary due to Disability, the Company shall pay as a disability benefit (“Disability Benefit”)
to the Participant a monthly benefit equal to one-twelfth of the product of (i) the Annual Benefit
Percentage, multiplied by (ii) the Participant’s Compensation in effect as of his or her date of
termination, and multiplied by (iii) the Participant’s Years of Service, up to a maximum amount
equal to such Compensation multiplied by the Maximum Benefit Percentage.

6

 

     (b) The Company shall pay the Disability Benefit to the Participant for his or her life and
shall commence the payment of such benefit as of the first day of the month coinciding with or next
following the Participant’s termination of employment; provided, however, that the Participant may
elect to receive, in lieu of a monthly benefit payable for life, a lump sum payment that is
equivalent to the monthly benefit, as determined on the basis of Plan Assumptions, and such lump
sum shall be payable to the Participant by the Company within 15 days after the date of
termination.

     (c) If a Participant elects to receive his or her Disability Benefit on a monthly basis for
life, then, upon the death of the Participant after the date of termination for Disability, the
Disability Benefit will be paid to the Participant’s Beneficiaries as set forth in Section 8.

     6. Termination Benefit.

     (a) In the event of termination of employment with the Company or a Subsidiary (except for
termination by the Company or a Subsidiary for Cause) of a Participant who has completed 10 Years
of Service but is not entitled to a Retirement Benefit under Section 4 or a Disability Benefit
under Section 5, the Company shall pay as a termination benefit (“Termination Benefit”) to the
Participant a monthly benefit equal to one-twelfth of the product of (i) the Annual Benefit
Percentage, multiplied by (ii) the Participant’s Compensation in effect as of his or her date of
termination, and multiplied by (iii) the Participant’s Years of Service, up to a maximum amount
equal to such Compensation multiplied by the Maximum Benefit Percentage.

     (b) The Company shall pay the Termination Benefit to the Participant for his or her life and
shall commence as of (i) in the case of a Participant who has not attained age 55 prior to
termination of employment, the first day of the month coinciding with or next following the
Participant’s attainment of age 55, or (ii) in the case of any other Participant who is age 55 or
older, the first day of the month following the Participant’s termination of employment; provided,
however, that the Participant may elect to receive, in lieu of a monthly benefit payable for life,
a lump sum payment that is equivalent to the monthly benefit, as determined on the basis of Plan
Assumptions, and such lump sum shall be payable to the Participant by the Company within 15 days
after the date of termination. In addition, in the case of a Participant who has not attained age
55 prior to termination of employment, the Participant may elect to receive, in lieu of a monthly
benefit payable for life beginning at age 55, a lump sum payment that is equivalent to the monthly
benefit, as determined on the basis of Plan Assumptions, and such lump sum shall be payable to the
Participant by the Company within 15 days after the date of termination; provided, however, that if
the Participant has voluntarily terminated his or her employment for any reason other than for Good
Reason prior to a Change of Control, then such Participant shall not be eligible to receive his or
her Termination Benefit until age 55.

     (c) If a Participant elects to receive his or her Termination Benefit on a monthly basis for
life, then, upon the death of the Participant either before or after the commencement of the
payment of the Termination Benefit, the Termination Benefit will be paid to the Participant’s
Beneficiaries as set forth in Section 8.

     7. Death Benefit. In the event of a Participant’s death while in the employment of
the Company or a Subsidiary, the Company shall pay as a pre-retirement death benefit
(“Pre-Retirement Death Benefit”) to Participant’s Beneficiaries a monthly benefit equal to
one-twelfth of the product of (i) the Maximum Benefit Percentage multiplied by (ii) the
Participant’s Compensation in effect as of the date of the Participant’s death. The Pre-Retirement
Death Benefit will be paid to the Participant’s Beneficiaries in a lump sum payment that is
equivalent to the monthly benefit (assuming the Participant

7

 

had lived to his or her Early Retirement Date), as determined on the basis of Plan Assumptions, and
such lump sum shall be payable to the Participant by the Company within 30 days after the date of
death.

     8. Benefits Payable After Death of Participant. In the event of a Participant’s death
after termination of employment, the Company shall pay the applicable Retirement Benefit,
Disability Benefit, Termination Benefit or Change of Control Benefit (such applicable benefit
referred to as the “Benefit” for purposes of Sections 8 and 9) to a Participant’s Beneficiaries
within 30 days after the date of the Participant’s death as follows: (i) if the Participant
elected to receive a lump sum Benefit but died prior to receipt of the lump sum Benefit, the
Beneficiaries shall receive such lump sum Benefit; or (ii) if the Participant elected to receive
monthly Benefit payments, then the Beneficiaries shall receive a lump sum equal to 120 monthly
installments of the Participant’s Benefit. If the Participant has no Beneficiaries, any Benefit
payment shall be paid to the estate of the Participant within 60 days after the date of his or her
death.

     9. Benefit Discount. For purposes of calculating the monthly Benefit payable under
this Plan, if a Participant is less than 62 years old as of his or her termination date, then any
monthly Benefits payable would be reduced by an amount equal to .25% multiplied by the number of
years that a Participant’s age is less than age 62 (subject to a maximum number of seven years).
In the event of a Change of Control, this Section 9 shall become null and void and shall be deemed
to be deleted from this Plan.

     10. Non-Vested Participant. In the event of termination of a Participant’s employment
with the Company or a Subsidiary for any reason prior to completion of 10 Years of Service and
prior to a Change of Control, other than termination of employment due to Disability or death or
for Cause (as provided in Section 17), the Participant shall not be eligible to receive any
benefits under the Plan; provided, however, that if a Participant has at least seven Years of
Service at the date of termination (excluding any additional Years of Service granted under Section
3(c)), other than a termination for Cause or voluntary termination by the Participant for any
reason other than for Good Reason, Disability, death or Retirement, then the Participant will be
credited with an additional three Years of Service and three years of age and will be eligible for
the benefits provided under Section 6. If, after a Change of Control, a Participant’s employment
with the Company or a Subsidiary is terminated for any reason, other than for Cause, prior to
completion of 10 Years of Service, the Participant shall be eligible to receive benefits under the
Plan.

     11. Change of Control. In the event of a Change of Control, the following provisions
shall apply, and shall supersede any contrary provisions in this Plan:

     (a) Each Participant employed by the Company as of the Change of Control shall be
automatically credited with and deemed to have completed an additional five Years of Service (in
addition to the Years of Service already completed by or granted to a Participant under the Plan)
and additional five years of age.

     (b) In the event of a Participant’s termination of employment with the Company or a Subsidiary
for any reason other than for Cause after a Change of Control, the Participant shall be credited
with an additional five Years of Service (in addition to the Years of Service already completed by
or granted to a Participant under the Plan and the five Years of Service granted under Section
11(a)) and additional five years of age. The Company shall pay as a termination benefit (“Change
of Control Benefit”) to the Participant, as elected by the Participant, either:

8

 

          (i) a monthly benefit equal to one-twelfth of the product of (i) the Annual Benefit
Percentage, multiplied by (ii) the Participant’s Compensation in effect as of his or her date of
termination, and multiplied by (iii) the Participant’s Years of Service, up to a maximum amount
equal to such Compensation multiplied by the Maximum Benefit Percentage, which shall be payable to
Participant for his or her life and shall commence as of the first day of the month coinciding with
or next following the Participant’s termination of employment; or

          (ii) a lump sum payment that is equivalent to the monthly benefit described in paragraph (i),
as determined on the basis of Plan Assumptions, within 15 days after the date of termination.

     (c) If any Successor to the Company (as defined in Section 24) fails or refuses to expressly
assume and agree to perform all obligations under this Plan in the same manner and to the same
extent that the Company or Subsidiary would be required to perform if no such succession had taken
place, the Company shall pay a Change of Control Benefit to each Participant in an amount
calculated under paragraph (b)(ii) above within five days after the earlier of (i) such succession
or (ii) the failure or refusal of a Successor to expressly assume and agree to perform all
obligations under this Plan.

     (d) If a Participant elects to receive his or her Change of Control Benefit pursuant to
paragraph (b)(i) above, upon the death of the Participant, the Change of Control Benefit will be
paid to the Participant’s Beneficiaries as set forth in Section 8.

     12. Tax Gross-up. All amounts payable (whether currently or in the future) by the
Company to a Participant or his or her Beneficiaries under this Plan shall be grossed-up in
accordance with the provisions of Appendix A hereto.

     13. Medical Coverage. For each Participant who is eligible to receive or receives
benefits under this Plan, beginning as of the first day following a Participant’s date of
termination of employment, each Participant and his or her spouse shall be provided by the Company
with health and medical insurance for the remainder of their individual lives that is equivalent to
the most beneficial health and medical insurance that Participant was eligible to receive during
his or her employment with the Company (which shall be no less beneficial than the insurance
provided to the CEO). The Company shall be responsible and obligated to maintain such health and
medical insurance and shall pay all premiums for such insurance, provided, however, that (i) the
Participant shall continue to pay the normal monthly employee contribution for the insurance,
subject to a maximum annual aggregate Participant contribution of $2,000, and (ii) these health and
medical benefits shall be secondary to any benefits provided under Medicare and to any other health
and medical benefits that the Participant receives from any other employer provided plan.

     14. Payor of Benefits. Benefits payable under the Plan with respect to a Participant
shall be the joint and several obligation of the Company and each Subsidiary that employed the
Participant during any period of his or her participation in this Plan, however, the Company shall
have the primary obligation of making any and all benefit payments under this Plan. If, for any
reason the Company is unable to make any payments, then all Subsidiaries that employed the
Participant during any period of his or her participation in this Plan shall have the obligation to
make all of such benefit payments. Adoption and maintenance of the Plan by the Company and any
Subsidiary shall not, for that reason, create a joint venture or partnership relationship between
or among such entities for purposes of payment of benefits under the Plan or for any other purpose.

9

 

     In order to meet its contingent obligations under the Plan, neither the Company nor any
Subsidiary shall be required to set aside any assets or otherwise create any type of fund in which
any Participant, or any person claiming under such Participant, has an interest other than that of
an unsecured general creditor of the Company or a Subsidiary, or which would provide any
Participant, or any person claiming under such Participant, with a legally enforceable right to
priority over any general creditor of the Company or a Subsidiary in the event of insolvency of the
Company or a Subsidiary. For all purposes of the Plan, the Company or a Subsidiary shall be
considered insolvent if it is unable to pay its debts as they mature or if it is subject to a
pending proceeding as a debtor under the U.S. Bankruptcy Code.

     During any period in which any trust which conforms to the prior paragraph is in existence,
benefits payable under the Plan shall be payable by the trustee in accordance with the terms,
provisions, conditions and limitations of the Plan and trust. To the extent that any distribution
described in the immediately preceding sentence does not fully satisfy the obligation for any
benefit due under the Plan, the Company or a Subsidiary shall remain fully liable and obligated for
full payment of any unpaid benefit due and payable under the Plan.

     15. Benefits Payable Only from General Corporate Assets; Unsecured General Creditor Status
of Participants.

     (a) The payments to a Participant or his or her Beneficiary hereunder shall be made from
assets which shall continue, for all purposes to be a part of the general, unrestricted assets of
the Company; no person shall have any interest in any such assets by virtue of the provisions of
this Plan. The Company’s obligation hereunder shall be an unfunded and unsecured promise to pay
money in the future. To the extent that any person acquires a right to receive payments from the
Company under the provisions hereof, such right shall be no greater than the right of any unsecured
general creditor of the Company; no such person shall have nor acquire any legal or equitable
right, interest or claim in or to any property or assets of the Company.

     (b) In the event that, in its discretion, the Company purchases an insurance policy or
policies insuring the life of any Participant (or any other property) to allow the Company to
recover the cost of providing benefits, in whole or in part, hereunder, neither the Participant nor
his or her Beneficiary shall have any rights whatsoever therein or in the proceeds therefrom. The
Company shall be the sole owner and beneficiary of any such insurance policy or other property and
shall possess and may exercise all incidents of ownership therein. No such policy, policies or
other property shall be held in any trust for the Participant, his or her Beneficiary or any other
person nor as collateral security for any obligation of the Company hereunder.

     16. Full Settlement.

     (a) No Right of Offset. The Company’s obligations to make payments under this Plan and to
otherwise perform its obligations under this Plan shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action that the Company may have against
a Participant or others.

     (b) No Benefit Reduction. The amount of any payments or benefits provided for in this Plan
shall not be reduced by any compensation earned by the Participant as the result of employment by
another employer, by any other retirement or severance benefits, by offset against any amount
claimed to be owed by the Participant to the Company, or otherwise.

10

 

     17. Forfeiture Upon Termination of Employment for Cause. In the event of a
Participant’s termination of employment by the Company or a Subsidiary for Cause, the Participant’s
benefits under the Plan shall be forfeited and shall have no right to any benefits under the Plan.

     18. Beneficiary Designation. The Participant shall have the right, at any time, to
submit in substantially the form attached hereto as Exhibit B a written designation of primary and
secondary Beneficiaries to whom payment under this Plan shall be made in the event of his or her
death prior to complete distribution of the benefits due and payable under the Plan. Each
Beneficiary designation shall become effective only when received by the Company. If no such
designation has been received by the Company from the Participant prior to his or her death, the
Participant shall be deemed to have designated as the Beneficiary (i) the Participant’s surviving
spouse, or (ii) if there is no surviving spouse, the Participant’s children, in equal shares.

     19. No Trust Created. Nothing contained in this Plan, and no action taken pursuant to
its provisions by either party hereto shall create, or be construed to create, a trust of any kind,
or a fiduciary relationship between the Company and any Participant, his or her Beneficiary or any
other person.

     20. No Contract of Employment. Nothing contained herein shall be construed to be a
contract of employment for any term of years, nor as conferring upon a Participant the right to
continue to be employed by the Company or any Subsidiary in his or her present capacity, or in any
capacity. This Plan relates to the payment of deferred compensation for the Participant’s
services, payable after termination of his or her employment with the Company or any Subsidiary,
and is not intended to be an employment contract.

     21. Benefits Not Transferable. Neither a Participant nor his or her Beneficiary shall
have any power or right to transfer, assign, anticipate, hypothecate or otherwise encumber any part
or all of the amounts payable hereunder. No such amounts shall be subject to seizure by any
creditor of any such Participant or Beneficiary, by a proceeding at law or in equity, nor shall
such amounts be transferable by operation of law in the event of bankruptcy, insolvency or death of
the Participant or his or her Beneficiary. Any such attempted assignment or transfer shall be
void.

     22. Administration.

     (a) Full power and authority to construe, interpret and administer the Plan shall be vested in
the CEO. This power and authority includes, but is not limited to, selecting Eligible Employees to
participate in the Plan, establishing rules and regulations for the administration of the Plan,
maintaining all records necessary for administration of the Plan, including, but not limited to,
Participation Agreements and beneficiary designation forms, and making all other determinations,
and taking such actions, as may be necessary or advisable for the administration of the Plan.
Decisions of the CEO shall be final, conclusive and binding upon all parties. The CEO, in his sole
discretion, may delegate day-to-day administration of the Plan to an employee or employees of the
Company or to a third-party administrator. The CEO may also rely on counsel, independent
accountants or other consultants or advisors for advice and assistance in fulfilling its
administrative duties under the Plan.

     (b) Certain persons may be offered the ability to participate in the Plan as an Eligible
Employee upon terms and conditions that differ from those in the Plan. The Participation Agreement
for any such Eligible Employee will be deemed to be an amendment to the Plan only for such Eligible
Employees who elect to participate in the Plan.

11

 

     23. Determination of Benefits.

     (a) Claim. A person who believes that he or she is being denied a benefit to which he
or she is entitled under the Plan (“Claimant”), or his or her duly authorized representative, may
file a written request for such benefit with the CEO of the Company, setting forth his or her
claim. The request must be addressed to the CEO of the Company at the Company’s principal place of
business.

     (b) Claim Decision. Upon receipt of a claim, the CEO shall advise the Claimant that a
reply will be forthcoming within a reasonable period of time, but ordinarily not later than 60 days
(45 days for Disability claims), and shall, in fact, deliver such reply within such period.
However, the CEO may extend the reply period for an additional 30 days for reasonable cause (an
additional 15 days, if necessary, for Disability claims). If the reply period will be extended,
the CEO shall advise the Claimant in writing during the initial 60-day period (45-day period for
Disability claims) indicating the special circumstances requiring an extension and the date by
which the CEO expects to render the benefit determination.

     If the claim is denied in whole or in part, the CEO will render a written opinion, using
language calculated to be understood by the Claimant, setting forth (i) the specific reason or
reasons for the denial, (ii) the specific references to pertinent Plan provisions on which the
denial is based, (iii) a description of any additional material or information necessary for the
Claimant to perfect the claim and an explanation as to why such material or such information is
necessary, (iv) appropriate information as to the steps to be taken if the Claimant wishes to
submit the claim for review, including a statement of the Claimant’s right to bring a civil action
under Section 502(a) of ERISA following an adverse benefit determination on review, and (v) the
time limits for requesting a review of the denial and for the actual review of the denial. With
respect to a Disability claim, if the CEO relied on a rule, guideline, protocol or similar
criterion in denying the claim, the notice will either include a copy or state that it was relied
on and will be provided upon request, without charge.

     (c) Request for Review. Within 60 days (180 days for Disability claims) after the
receipt by the Claimant of the written opinion described above, the Claimant may request in writing
that the Board review the CEO’s prior determination. Such request must be addressed to the Board
at the Company’s then principal place of business. The Claimant or his or her duly authorized
representative may submit written comments, documents, records or other information relating to the
denied claim, which such information shall be considered in the review under this subsection
without regard to whether such information was submitted or considered in the initial benefit
determination.

     The Claimant or his or her duly authorized representative shall be provided, upon request and
free of charge, reasonable access to, and copies of, all documents, records and other information
which (i) was relied upon by the CEO in making the initial claims decision, (ii) was submitted,
considered or generated in the course of the CEO making the initial claims decision, without regard
to whether such instrument was actually relied upon by the CEO in making the decision, (iii)
demonstrates compliance by the CEO with administrative processes and safeguards designed to ensure
and to verify that benefit claims determinations are made in accordance with governing Plan
documents and that, where appropriate, the Plan provisions have been applied consistently with
respect to similarly situated Claimants, or (iv) in the case of a Disability claim, constitute a
statement of policy or guidance concerning the denied benefit. With respect to a Disability claim,
(1) the Claimant may request that any medical or vocational experts who advised the CEO regarding
the claim be identified, and (2) if the claim was denied on the basis of a medical judgment, the
Board will consult a health care professional with appropriate training and experience other than
the health care professional who was consulted in connection with the denial of the claim or his or her subordinates. If the Claimant does not
request a review of the CEO’s determination within such 60-day period (180-day period for
Disability claims), he or she shall be barred and estopped from challenging such determination.

12

 

     (d) Review of Decision. Within a reasonable period of time, ordinarily not later than
60 days (45 days for Disability claims), after the Board’s receipt of a request for review, it will
review the CEO’s prior determination. If special circumstances require that the 60-day time period
(45-day time period for Disability claims) be extended, the Board will so notify the Claimant
within the initial 60-day period (45-day period for Disability claims) indicating the special
circumstances requiring an extension and the date by which the Board expects to render its decision
on review, which shall be as soon as possible but not later than 120 days (90 days for Disability
claims) after receipt of the request for review.

     The Board has discretionary authority to determine a Claimant’s eligibility for benefits and
to interpret the terms of the Plan. Benefits under the Plan will be paid only if the Board decides
in its discretion that the Claimant is entitled to such benefits. The decision of the Board of
Directors shall be final and non-reviewable, unless found to be arbitrary and capricious by a court
of competent review. Such decision will be binding upon the Company and the Claimant.

     If the Board makes an adverse benefit determination on review, the Board will render a written
opinion, using language calculated to be understood by the Claimant, setting forth (i) the specific
reason or reasons for the denial, (ii) the specific references to pertinent Plan provisions on
which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request
and free of charge, reasonable access to, and copies of, all documents, records and other
information which (A) was relied upon by the Board in making its decision, (B) was submitted,
considered or generated in the course of the Board making its decision, without regard to whether
such instrument was actually relied upon by the Board in making its decision, (C) demonstrates
compliance by the Board with administrative processes and safeguards designed to ensure and to
verify that benefit claims determinations are made in accordance with governing Plan documents, and
that, where appropriate, the Plan provisions have been applied consistently with respect to
similarly situated claimants, or (D) in the case of a Disability claim, constitute a statement of
policy or guidance concerning the denied benefit, and (iv) a statement of the Claimant’s right to
bring a civil action under Section 502(a) of ERISA following the adverse benefit determination on
such review. With respect to a Disability claim, if the Board relied on a rule, guideline,
protocol or similar criterion in denying the claim, the notice will either include a copy or state
that it was relied on and will be provided upon request, without charge.

     24. Amendment. This Plan may be amended, altered, modified, or terminated at any time
by a written instrument signed by the Company, its successors or assigns; provided, however, that
no such amendment, alteration, modification or termination may adversely affect the rights of any
Participant under this Plan. In addition, as provided for in Section 22, the terms and conditions
contained in a Participation Agreement for any particular Participant shall be deemed to be an
amendment to the Plan only for purposes of such Participant. In the event of a Change of Control,
the Plan cannot be amended, altered, modified or terminated thereafter without the prior written
consent of each Participant. Except for the application of Section 10 (which shall not be
superceded by the terms of any other agreement with the Participant), to the extent that any of the
terms and provisions of this Plan are contrary or contradictory to any terms and provisions of any
employment agreement between a Participant and the Company or a Subsidiary, and the terms and
provisions of such employment agreement are more beneficial to a Participant, then the terms and
provisions of the employment agreement shall control and shall be deemed to be substituted for and
replace the contrary terms and provisions of this Plan.

13

 

     25. Successors. 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, operation of law or otherwise (including any purchase, merger,
amalgamation, Corporate Transaction or other transaction involving the Company or any subsidiary or
Affiliate of the Company), to all or substantially all of the business and/or assets of the Company
or its subsidiaries (a “Successor”) to expressly assume and agree to perform this Plan 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 the Company’s obligations under this
Plan and shall entitle the Participant to immediate compensation from the Company and the Successor
as provided for under Section 11 of this Plan.

     26. Not a Security. Nothing contained herein shall be construed to create a security.
This Plan relates to the payment of deferred compensation for each Participant’s services, payable
after termination of his or her employment with the Company, and is not intended to be, or to
create, a security.

     27. Notice. Any notice, consent or demand required or permitted to be given under the
provisions of this Plan shall be in writing, and shall be signed by the party giving or making the
same. If such notice, consent or demand is mailed to a party hereto, it shall be sent by United
States certified mail, postage prepaid, addressed to such party’s last known address as shown on
the records of the Company. The date of such mailing shall be deemed the date of notice, consent
or demand. Either party may change the address to which notice is to be sent by giving notice of
the change of address in the manner aforesaid.

     28. Enforceability. If any one or more of the provisions contained in this Plan shall
for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect the remaining provisions of this Plan, and the
terms of such provision shall be construed, amended or deleted (if necessary) so as to cure such
invalidity, illegality or unenforceability.

     29. Governing Law. Except to the extent preempted by federal law, this Plan, and the
rights of the Company and the Eligible Employees hereunder, shall be governed by and construed in
accordance with the laws of the State of Texas without regard to the principles of conflicts of law
that might otherwise apply.

     IN WITNESS WHEREOF, this Plan, as amended and restated, is executed by a duly authorized
officer of the Company as of the 22nd day of February, 2007.

	 	      	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.
	 
	 	 	 	 
	ATTEST:

	 	By:	 	/s/ Bernard J. Duroc-Danner 
	 

	 	 	 	 
	 

	 	 	 	Bernard J. Duroc-Danner

Chairman, President & Chief Executive Officer
	/s/ Burt M. Martin 
	 	 	 	 
	 
	 	 	 	 
	Secretary
	 	 	 	 

14

 

EXHIBIT A

PARTICIPATION AGREEMENT

WEATHERFORD INTERNATIONAL LTD.

NONQUALIFIED EXECUTIVE RETIREMENT PLAN

	 	 	 
	TO:
	 	Weatherford International Ltd. (“Company”)

Attention: Vice President — Human Resources

	 	 	 

	FROM:
	 	                                         (“Eligible Employee”)

     By signing and filing this Participation Agreement, the Eligible Employee elects to
participate in the Plan, and agrees to be bound by the terms of the Plan, a copy of which the
Eligible Employee acknowledges having received and read. Specifically, but not in limitation of
the foregoing, the Eligible Employee understands, agrees and acknowledges that:

	 	1.	 	this Participation Agreement is irrevocable;
	 
	 	2.	 	the Eligible Employee’s current annual base salary shall be
reduced by 10%;
	 
	 	3.	 	the annual base salary reduction in paragraph 2 above shall not
be deemed to constitute a breach of any employment agreement between the
Company, or its subsidiaries, and the Eligible Employee;
	 
	 	4.	 	the Company will purchase Company-owned life insurance on the
Eligible Employee and the Eligible Employee agrees to submit to the reasonable
requirements of the insurance company to obtain such insurance. The Eligible
Employee further agrees and acknowledges that (i) such life insurance is
obtained for the benefit of the Company, (ii) the Company will be the
beneficiary of such life insurance and (iii) the Eligible Employee (and his or
her Beneficiaries) shall have no claim or right to such life insurance or the
proceeds thereof; and
	 
	 	5.	 	the other specific terms of the Plan applicable to the Eligible
Employee are as follows:

	 	a.	 	Annual Benefit Percentage is 2.75%;
	 
	 	b.	 	the bonus amount under Section 2(h) is the
higher of the “target” bonus or actual bonus achieved;
	 
	 	c.	 	Maximum Benefit Percentage is 60%; and
	 
	 	d.	 	the number of additional Years of Service and
years of age for purposes of Section 3(c) is three.

 

	 	 	 	 	               	 
	 	 	 	 	 
	 	 	Eligible Employee’s Signature	 	 
	 
	 	 	 	 	 
	 

	 	Dated: 	 	 	 
	 

	 	 	 

	 	 

 

 

EXHIBIT B

DESIGNATION OF BENEFICIARY

WEATHERFORD INTERNATIONAL LTD.

NONQUALIFIED EXECUTIVE RETIREMENT PLAN

I,                                         , hereby designate:

	 	 	 	 	 
	PRIMARY
	 	 	 	 
	 
	(Print Beneficiary’s Name) Last

	 	First
	 	MI
	 
	 	 	 	 
	 
	Print Beneficiary’s Address

	 	 	 	Relationship
	 
	 	 	 	 
	PRIMARY
	 	 	 	 
	 
	(Print Beneficiary’s Name) Last

	 	First
	 	MI
	 
	 	 	 	 
	 
	Print Beneficiary’s Address

	 	 	 	Relationship
	 
	 	 	 	 
	as my beneficiary(ies) under the Plan. In the event of my death prior to the distribution to me of
my benefits in the Plan, such beneficiary(ies) then living are to receive such benefits in equal
shares.
	 
	 	 	 	 
	If the above-named beneficiary(ies) do not survive me, my benefits shall be distributed in equal
shares to those then living of the following person(s):
	 
	 	 	 	 
	SECONDARY
	 	 	 	 
	 
	(Print Beneficiary’s Name) Last

	 	First
	 	MI
	 
	 	 	 	 
	 
	Print Beneficiary’s Address

	 	 	 	Relationship
	 
	 	 	 	 
	SECONDARY
	 	 	 	 
	 
	(Print Beneficiary’s Name) Last

	 	First
	 	MI
	 
	 	 	 	 
	 
	Print Beneficiary’s Address

	 	 	 	Relationship

This designation shall remain in effect until revoked or changed by my filing a new beneficiary
designation form.

 

	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature of Participant)	 	 
	 
	 	 	 	 	 
	 

	 	Date: 	 	 	 
	 

	 	 	 	 	 

 

 

APPENDIX A

     A. Anything in the Plan to the contrary notwithstanding, if it shall be determined that any
payment or distribution by the Company to or for the benefit of the Executive (whether paid or
payable or distributed or distributable pursuant to the terms of the Plan or otherwise, but
determined without regard to any additional payments required under this Appendix A) (a “Payment”)
would be subject to any penalties, excise or other taxes, including, but not limited to, any
penalties, excise or other taxes imposed by Sections 4999 or 409A of the Code (and any successor
provisions or sections to such sections), or any interest or penalties are incurred by the
Executive with respect to any such excise or other taxes (such excise or other taxes, together with
any such interest and penalties, are collectively referred to as the “Excise Tax”), then the
Executive shall be entitled to receive 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. For purposes of this Appendix A, all references to the Company shall be deemed to also
include any Subsidiaries that have payment obligations under the Plan.

     B. Subject to the provisions of paragraph C, all determinations required to be made under this
Appendix A, 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 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 Appendix A, shall be paid by the Company to the Executive within five days after
the receipt of the Accounting Firm’s determination. Any determination by the Accounting Firm shall
be binding upon the Company and the Executive. As a result of the uncertainty in the application
of Excise Taxes 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 paragraph 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.

     C. The Executive shall notify the Company in writing of any claim by the Internal Revenue
Service (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 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:

 

 

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

(2) 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,

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

(4) 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 in connection with such costs 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 Appendix A, 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. Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

     D. If, after the receipt by the Executive of an amount advanced by the Company pursuant to
paragraph 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 paragraph 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 paragraph 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 30 days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and
the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid.

     E. Any provision in the Plan, this Appendix A 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 Appendix A and pursuant to the provisions of another plan or agreement, then the Company shall
pay the greater of the amount determined pursuant to this Appendix A or the amount determined
pursuant to the provisions of such other plan or agreement, but in no event shall the Company pay amounts pursuant to both provisions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]