Document:

exv10w1

Exhibit 10.1

FIRST AMENDMENT 

TO THE 

WEATHERFORD INTERNATIONAL LTD.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     This First Amendment (the “Amendment”) to the Weatherford International Ltd. Supplemental
Executive Retirement Plan, (the “Plan”) effective January 1, 2010, is adopted by Weatherford
International Ltd., a Swiss joint-stock corporation registered in Switzerland (the “Company”), to
be effective as set forth below.

RECITALS

     WHEREAS, Section 18 of the Plan allows the Company to amend the Plan; and

     WHEREAS, the Board of Directors of the Company desires to amend the Plan as set forth herein;

     NOW, THEREFORE, the Plan is hereby amended, effective as of March 31, 2010 as follows:

     1. The Plan is hereby amended by adding the following new Section 25:

“Freezing of the Plan and Treatment of Termination/Retirement Benefits.

     (a) Notwithstanding any other provisions of the Plan to the contrary, effective as
of March 31, 2010, (1) no further individuals shall become Participants in the Plan,
(2) each Participant shall be vested (regardless of his or her Years of Service) for
purposes of determining entitlement to, but not the amount of, Termination Benefits
under Section 5 of the Plan, (3) there shall be no further benefit accruals under the
Plan after March 31, 2010, (4) each Participant’s Termination Benefit under the Plan
shall be calculated only as specified in Section 25(b), and (5) in no event shall any
Participant be entitled to a Retirement Benefit under Section 4 of the Plan. Effective
as of March 31, 2010, the Plan, as frozen, shall otherwise continue to operate with
full force and effect. For avoidance of doubt, the Participants shall remain eligible
for the medical coverage provided in accordance with Section 8 of the Plan.

     (b) Upon termination of the Participant’s employment with the Company and all
Subsidiaries, for any reason including termination as a result of retirement, death or
Disability and whether or not a Change of Control has occurred, the Company shall pay
as the Termination Benefit to the Participant (or Beneficiary, as applicable) an
amount, no less than zero, that is equal to (A) plus (B) minus (C) where (A) represents
the Participant’s Freeze Date SERP Benefit and (B) represents the Participant’s
Earnings Adjustment and (C) represents the amount of the Participant’s Retirement
Benefit,

 

 

Termination Benefit, Disability Benefit or Death Benefit, paid or to be paid
under the ERP.

     (c) The Participant’s Freeze Date SERP Benefit shall be calculated as a lump sum
equivalent in accordance with Section 5(a) of the Plan (and disregarding any offset of
amounts paid or to be paid under the ERP) as of March 31, 2010 as if he incurred a
termination of employment with the Company (not a termination of employment by the
Company for Cause) and all Subsidiaries on March 31, 2010 reflecting the Participant’s
Years of Service and years of age for purposes of the Plan as recorded in the Company’s
records as of March 31, 2010, taking into account any Years of Service and years of age
granted under the Participant’s Participation Agreement and Section 3(b) of the Plan.

     (d) For avoidance of doubt, in the case of Participants who have not yet earned
any benefit accruals under the Plan as a result of contractual waivers, the
Participant’s Freeze Date SERP Benefit shall be deemed to be the Participant’s
Retirement Benefit, Termination Benefit, Disability Benefit or Death Benefit, paid or to be paid under the ERP,
solely for purposes of the calculations in Section 25(b) and (e). The
Participant’s contractual waivers of benefit accruals shall continue to apply for all
other purposes under the Plan, including the calculation of the Termination Benefits.
Each Participant’s Freeze Date SERP Benefit, including Participants that have not yet
earned any benefit accruals under the Plan, shall be listed on Exhibit D.

     (e) Commencing on April 30, 2010 and continuing until the Participant terminates
employment with the Company and all Subsidiaries for any reason (including death or
Disability), the Participant’s Freeze Date SERP Benefit, shall be credited as of the
last day of each calendar month exclusively with earnings in an amount equal to (A) the
sum of the Participant’s Freeze Date SERP Benefit plus any prior earnings credited
under this Section 25(e), multiplied by (B) five (5) year LIBOR rate on the last day
of each calendar month divided by 12. The Participant’s Earnings Adjustment shall be
equal to the total cumulative earnings credits attributable to the Participant under
this Section 25(e).

     (f) The following two examples are provided to illustrate the intended operation
of this Section 25.

     (i) Case 1 — Participant A has previously accrued a
frozen Termination Benefit
under the ERP equal to $1,000,000. Participant A’s Freeze Date SERP Benefit is equal
to $1,200,000 as calculated in accordance with Section 25(c). Participant terminates
employment with the Company on August 1, 2012 and as of that date, his Earnings
Adjustment is equal to $78,000 based upon the crediting of interest on his Freeze Date
SERP Benefit in accordance with Section 25(e). Upon termination of employment,

 

 

Participant A is entitled to a Termination Benefit under the Plan equal to (A) his
Freeze Date SERP Benefit ($1,200,000), plus (B) his Earnings Adjustment of $78,000,
minus (C) his ERP Termination Benefit of $1,000,000 or a net amount of $278,000 under
the Plan. Participant would also be entitled to receive $1,000,000 under the ERP in
accordance with its provisions.

     (ii) Case 2 — Participant B has previously accrued a frozen Termination Benefit
under the ERP equal to $1,000,000. Participant B contractually waived all benefit
accruals prior to the SERP freeze date. In accordance with Section 25(d), the
Participant’s Freeze Date SERP Benefit is deemed to be equal to $1,000,000, based upon
his ERP Termination Benefit. Participant terminates employment with the Company on
August 1, 2012 and as of that date, his Earnings Adjustment is equal to $67,000 based
upon the crediting of interest on his Freeze Date SERP Benefit in accordance with
Section 25(e). Upon termination of employment, Participant B is entitled to a
Termination Benefit under the Plan equal to (A) his Freeze Date SERP Benefit
($1,000,000), plus (B) his Earnings Adjustment of $67,000, minus (C) his ERP
Termination Benefit of $1,000,000 or a net amount of $67,000 under the Plan.
Participant would also be entitled to receive $1,000,000 under the ERP in accordance
with its provisions.

     IN WITNESS WHEREOF, the Company has caused this Amendment to be executed on its behalf by its
duly authorized officer, this 17th day of March, 2010.

	 	 	 	 	 
	Weatherford International Ltd.	 	 
	 
	 	 	 	 
	By:

	 	/s/ BERNARD J. DUROC-DANNER
 

Bernard J. Duroc-Danner
	 	 
	 

	 	Chairman, President & CEO	 	 

 

 

Exhibit D—Freeze Date SERP Benefits

	 	 	 	 	 
	Bernard J. Duroc-Danner
	 	$	70,816,990	 
	Andrew P. Becnel
	 	$	9,020,091	 
	Stuart E. Ferguson
	 	£	7,569,476	 
	Keith R. Morley
	 	$	11,814,634	 
	M. Jessica Abarca
	 	$	4,803,617	 
	M. David Colley
	 	$	4,605,669exv10w2

Exhibit 10.2

Weatherford International Ltd.

Performance Unit Award Agreement

This Performance Unit Award Agreement (this “Agreement”) is made and entered
into by and between Weatherford International Ltd., a Swiss corporation (the “Company”),
and                      (the “Holder”) as of this March 18, 2010, pursuant to the Weatherford
International Ltd. 2006 Omnibus Incentive Plan, as amended (the “Plan”), which is
incorporated by reference herein in its entirety.

Whereas, the Company desires to grant to the Holder Performance Unit Awards (the
“Units”) under the Plan, subject to the terms and conditions of this Agreement; and

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

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

	1.	 	Definitions. For purposes of this Agreement, “Forfeiture Restrictions” shall
mean any prohibitions and restrictions set forth herein or in the Plan with respect to the
sale or other disposition of the Units and the obligation to forfeit such Units to the
Company. Capitalized terms not otherwise defined in this Agreement shall have the meanings
given to such terms in the Plan.
	 
	2.	 	Grant of Units. Effective as of the date of this Agreement, the Company grants to
the Holder                      Units (the “Target Unit Amount”). Each Unit shall, upon
vesting pursuant to Section 4 and subject to the Performance Goals set out in Annex A to this
Agreement, be convertible into between 0.0 and 2.0 Shares (such amount being the
“Performance Multiplier”), depending on the level of achievement of the Performance
Goals and during the periods (each a “Performance Period”) described in Annex A to
this Agreement, such that the maximum number of Shares deliverable under this Agreement
(assuming a 2.0 Performance Multiplier is applicable for each Performance Period) shall be
equal to two-times the Target Unit Amount. The Company and the Holder agree that this
Agreement, together with the Plan and any employment agreement between the Company and the
Holder entered into on or after the date of this Agreement (the “Employment
Agreement”), sets forth the complete terms of the Award and that the Award shall be
subject to the terms of the Employment Agreement. For the avoidance of doubt, the term
“Employment Agreement” as used herein shall not refer to any employment agreement between the
Holder and the Company (or any of the Company’s affiliates) that was entered into prior to the
date of this Agreement (any such agreement, a “Prior Employment Agreement”). The
Holder acknowledges and agrees that the terms of any Prior Employment Agreement (including,
without limitation, any opportunities for accelerated vesting of equity awards thereunder)
shall be inapplicable to the Units granted pursuant to this Agreement.
	 
	3.	 	Transfer Restrictions. Except as specified herein or in the Plan, the Units may not
be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or
disposed of. Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer,
encumbrance or disposition in violation of this Agreement or the Plan shall be void, and the
Company shall not be bound thereby.

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	4.	 	Vesting.

	 	(a)	 	Except as specified otherwise in this Section 4, the Units shall be subject to
Forfeiture Restrictions, which shall lapse in accordance with the vesting dates set
forth in Annex A.
	 
	 	(b)	 	Notwithstanding the foregoing, if (a) the Holder’s employment or affiliation
relationship with the Company and its Affiliates is terminated prior to the final
vesting date (i) due to the death or Disability of the Holder, (ii) by the Holder for
Good Reason (as defined below) or (iii) by the Company for any reason other than Cause
(as defined below) then, in any such event, all Forfeiture Restrictions shall lapse on
the date of termination of the Holder’s employment or affiliation relationship, and for
purposes of calculating the Performance Multiplier, all Performance Periods not yet
completed shall be deemed to end on the date of such termination, or (b) there is a
Change in Control, then all Forfeiture Restrictions shall immediately lapse with
respect to all Units subject to Forfeiture Restrictions, and for purposes of
calculating the Performance Multiplier, all Performance Periods not yet completed shall
be deemed to end on the date of such Change in Control. For purposes of this
Agreement, “Change in Control” means a change in the ownership of the Company,
a change in the effective control of the Company or a change in the ownership of a
substantial portion of the assets of the Company as described in Section 409A. For
purposes of this Agreement, the terms “Good Reason” and “Cause” shall
have the meanings provided under the Holder’s Employment Agreement, if any, and in the
absence of an Employment Agreement, such terms shall be inapplicable for purposes of
this Agreement and any termination of the Holder’s employment other than due to clause
(a)(i) of this Section 4(b) shall be governed by Section 4(c) of this Agreement.
	 
	 	(c)	 	If the Holder’s employment or affiliation relationship with the Company and its
Affiliates terminates prior to the final vesting date by the Holder for any reason
other than Good Reason or by the Company for Cause, then any Forfeiture Restrictions
that have not previously lapsed pursuant to the provisions of this Section 4 shall not
lapse, and any Units with respect to which the Forfeiture Restrictions have not lapsed
shall be forfeited to the Company on the date of the termination of the Holder’s
employment or affiliation relationship with the Company and its Affiliates. In the
event any Units are forfeited to the Company pursuant to this Agreement, the Company
will not be obligated to pay the Holder any consideration whatsoever for the forfeited
Units.

	5.	 	Dividend Equivalents. If during the period the Holder holds any Units awarded
hereby the Company pays a dividend in cash, Shares or otherwise with respect to the
outstanding shares of Company’s registered shares, par value CHF 1.16 per share (the
“Shares”), the Holder shall receive no dividend equivalent payment with respect to the
Holder’s Units.
	 
	6.	 	Delivery of Shares. Upon the date of lapse of the Forfeiture Restrictions under
Section 4 the Company shall deliver or cause to be delivered a number of Shares equal to the
number of Units with respect to which the Forfeiture Restrictions have lapsed multiplied by
the applicable Performance Multiplier (subject to the satisfaction by the Holder of any
liability arising under Section 8 of this Agreement).
	 
	7.	 	Capital Adjustments and Reorganizations. The existence of the Units shall not affect
in any way the right or power of the Company or its shareholders to make or authorize any or
all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business, or any acquisition, merger, amalgamation or consolidation of the
Company, or any issue of bonds, debentures, preferred or prior preference shares ahead of or

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	 	 	affecting the Shares or the rights thereof, or the winding up, dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise, including a
Corporate Change (as defined in the Plan).
	 
	8.	 	Responsibility for Taxes & Withholding. Regardless of any action the Company or any
of its Affiliates takes with respect to any or all income tax, social insurance, payroll tax,
payment on account or other tax-related items related to the Holder’s participation in the
Plan and legally applicable to the Holder (“Tax-Related Items”), the Holder
acknowledges that the ultimate liability for all Tax-Related Items is and remains the Holder’s
responsibility and may exceed the amount actually withheld by the Company or any of its
Affiliates. The Holder further acknowledges that the Company and/or its Affiliates (1) make
no representations or undertakings regarding the treatment of any Tax-Related Items in
connection with any aspect to the Units, including, but not limited to, the grant of the
Units, the lapse of the Forfeiture Restrictions, the delivery of Shares, the subsequent sale
of Shares acquired pursuant to such delivery and the receipt of any dividends and/or dividend
equivalents; and (2) do not commit to and are under no obligation to structure the terms of
any award to reduce or eliminate Holder’s liability for Tax-Related Items or achieve any
particular tax result. Further, if the Holder becomes subject to tax in more than one
jurisdiction between the date of grant and the date of any relevant taxable event, the Holder
acknowledges that Company and/or its Affiliates may be required to withhold or account for
Tax-Related Items in more than one jurisdiction.
	 
	 	 	Prior to any relevant taxable or tax withholding event, as applicable, the Holder will pay
or make adequate arrangements satisfactory to the Company and/or its Affiliates to satisfy
all Tax-Related Items. In this regard, the Holder authorizes the Company and/or its
Affiliates, or their respective agents, at their discretion, to satisfy the obligations with
regard to all Tax-Related Items by one or a combination of the following:

	 	(a)	 	withholding from the Holder’s wages or other cash compensation paid to the
Holder by the Company and/or its Affiliates; or
	 
	 	(b)	 	withholding from proceeds of the Shares acquired following the lapse of the
Forfeiture Restrictions either through a voluntary sale or through a mandatory sale
arranged by the Company (on Holder’s behalf pursuant to this authorization); or
	 
	 	(c)	 	withholding in Shares to be delivered upon the lapse of the Forfeiture
Restrictions.

	 	 	To avoid negative accounting treatment, the Company and/or its Affiliates may withhold or
account for Tax-Related Items by considering applicable minimum statutory withholding
amounts or other applicable withholding rates. If the obligation for Tax-Related Items is
satisfied by withholding in Shares, for tax purposes, the Holder is deemed to have been
issued the full number of Shares attributable to the awarded Units, notwithstanding that a
number of Shares are held back solely for the purpose of paying the Tax-Related Items due as
a result of any aspect of the Holder’s participation in the Plan. The Holder shall pay to
the Company and/or its Affiliates any amount of Tax-Related Items that the Company and/or
its Affiliates may be required to withhold or account for as a result of the Holder’s
participation in the Plan that cannot be satisfied by the means previously described. The
Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if
the Holder fails to comply with the Holder’s obligations in connection with the Tax-Related
Items.

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	9.	 	Employment or Affiliation Relationship. For purposes of this Agreement, the Holder
shall be considered to be in the employment of, or affiliated with, the Company or its
Affiliates as long as the Holder has an employment or affiliation relationship with the
Company or its Affiliates. The Committee shall determine any questions as to whether and when
there has been a termination of such employment or affiliation relationship, and the cause of
such termination, under the Plan and the Committee’s determination shall be final and binding
on all persons.
	 
	10.	 	Voting and Other Rights. The Holder shall have no rights as a shareholder of the
Company in respect of the Units, including the right to vote and to receive dividends and
other distributions, until delivery of certificates representing Shares in satisfaction of
such Units.
	 
	11.	 	Not an Employment or Affiliation Agreement. This Agreement is not an employment or
affiliation agreement, and no provision of this Agreement shall be construed or interpreted to
create an employment relationship between the Holder and the Company or any of its Affiliates
or guarantee the right to remain employed by or affiliated with the Company or any of its
Affiliates for any specified term.
	 
	12.	 	Data Privacy. By signing below, the Holder voluntarily acknowledges and consents to
the collection, use, processing and transfer of personal data as described in this Section.
The Holder is not obliged to consent to such collection, use, processing and transfer of
personal data. However, failure to provide the consent may affect the Holder’s ability to
participate in the Plan. The Company and its Affiliates hold certain personal information
about the Holder, including the Holder’s name, home address and telephone number, date of
birth, social security number or other employee identification number, salary, nationality,
job title, any shares of stock or directorships held in the Company and details of all Units
or any other entitlement to shares of stock awarded, cancelled, purchased, vested, unvested or
outstanding in the Holder’s favor, for the purpose of managing and administering the Plan
(“Data”). The Company and its Affiliates will transfer Data amongst themselves as
necessary for the purpose of implementation, administration and management of the Holder’s
participation in the Plan, and the Company and its Affiliates may each further transfer Data
to any third parties assisting the Company in the implementation, administration and
management of the Plan. These recipients may be located in the European Economic Area or
elsewhere throughout the world in countries that may not provide an equivalent level of data
protection to the laws in the Holder’s home country, such as the United States. The Holder
authorizes them to receive, possess, use, retain and transfer the Data, in electronic or other
form, for the purposes of implementing, administering and managing the Holder’s participation
in the Plan, including any requisite transfer of such Data as may be required for the
administration of the Plan and the subsequent holding of Shares on the Holder’s behalf by a
broker or other third party with whom the Holder may elect to deposit any Shares acquired
pursuant to the Plan. The Holder may, at any time, review Data, require any necessary
amendments to it or withdraw the consents herein in writing by contacting the Company;
however, withdrawing consent may affect the Holder’s ability to participate in the Plan.
	 
	13.	 	Notices. Any notice, instruction, authorization, request or demand required
hereunder shall be in writing, and shall be delivered either by personal delivery, by
facsimile, by certified or registered mail, return receipt requested, or by courier or
delivery service, addressed to the Company at the address indicated below on the execution
page of this Agreement, and to the Holder at the Holder’s address indicated in the Company’s
register of Plan participants, or at such other address and number as a party shall have
previously designated by written notice given to the other party in the manner hereinabove set
forth. Notices shall be deemed given when received, if sent by facsimile (confirmation of
such receipt by confirmed facsimile transmission being deemed receipt of communications sent
by facsimile means); and when delivered and receipted for (or upon the

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	 	 	date of attempted delivery where delivery is refused), if hand-delivered, sent by express
courier or delivery service, or sent by certified or registered mail, return receipt
requested.
	 
	14.	 	Amendment and Waiver. This Agreement may be amended from time to time by the
Committee in its discretion in any manner that it deems appropriate and that is consistent
with the terms of the Plan. However, no such amendment shall adversely affect in a material
manner any right of the Holder without his/her written consent. Only a written instrument
executed and delivered by the party waiving compliance hereof shall make any waiver of the
terms or conditions effective. Any waiver granted by the Company shall be effective only if
executed and delivered by a duly authorized executive officer of the Company other than the
Holder. The failure of any party at any time or times to require performance of any
provisions hereof shall in no manner affect the right to enforce the same. No waiver by any
party of any term or condition, or the breach of any term or condition contained in this
Agreement, in one or more instances, shall be construed as a continuing waiver of any such
condition or breach, a waiver of any other condition, or the breach of any other term or
condition.
	 
	15.	 	Governing Law and Severability. This Agreement shall be governed by the laws of
Switzerland without regard to its conflicts of law provisions. The invalidity of any
provision of this Agreement shall not affect any other provision of this Agreement, which
shall remain in full force and effect.
	 
	16.	 	Successors and Assigns. Subject to the limitations which this Agreement and the Plan
impose upon the transferability of the Units, this Agreement shall bind, be enforceable by and
inure to the benefit of the Company and its successors and assigns, and to the Holder, his
permitted assigns and, upon the Holder’s death, the Holder’s estate and beneficiaries thereof
(whether by will or the laws of descent and distribution), executors, administrators, agents,
and legal and personal representatives.
	 
	17.	 	Electronic Delivery and Execution. The Holder hereby consents and agrees to
electronic delivery of any documents that the Company may elect to deliver (including, but not
limited to, plan documents, prospectus and prospectus supplements, grant or award
notifications and agreements, account statements, annual and quarterly reports, and all other
forms of communications) in connection with this and any other Award made or offered under the
Plan. The Holder understands that, unless revoked by the Holder by giving written notice to
the Company pursuant to the Plan, this consent will be effective for the duration of the
Agreement. The Holder also understands that he or she will have the right at any time to
request that the Company deliver written copies of any and all materials referred to above.
The Holder hereby consents to any and all procedures the Company has established or may
establish for an electronic signature system for delivery and acceptance of any such documents
that the Company may elect to deliver, and agree that his or her electronic signature is the
same as, and will have the same force and effect as, his or her manual signature. The Holder
consents and agrees that any such procedures and delivery may be affected by a third party
engaged by the Company to provide administrative services related to the Plan.
	 
	18.	 	Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be an original for all purposes but all of which taken together shall constitute
but one and the same instrument.
	 
	19.	 	Acknowledgements. The Holder acknowledges and agrees to the following:

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	 	(a)	 	The Plan is discretionary in nature and the Committee may amend, suspend, or
terminate it at any time.
	 
	 	(b)	 	The grant of the Units is voluntary and occasional and does not create any
contractual or other right to receive future grants of Units, or benefits in lieu of
the Units even if the Units have been granted repeatedly in the past.
	 
	 	(c)	 	The Holder’s participation in the Plan is voluntary.
	 
	 	(d)	 	The value of the Units is an extraordinary item of compensation, which is
outside the scope of the Holder’s employment contract (if any), except as may otherwise
be explicitly provided in the Holder’s employment contract (if any).
	 
	 	(e)	 	The Units are not part of normal or expected compensation or salary for any
purpose, including, but not limited to, calculating termination, severance,
resignation, redundancy, end of service, or similar payments, or bonuses, long-service
awards, pension or retirement benefits.
	 
	 	(f)	 	The future value of the Shares is unknown and cannot be predicted with
certainty.
	 
	 	(g)	 	No claim or entitlement to compensation or damages arises from the forfeiture
of the award, termination of the Plan, or diminution in value of the Units or Shares
and the Holder irrevocably releases the Company and its Affiliates from any such claim
that may arise.
	 
	 	(h)	 	Nothing in this Agreement or the Plan shall confer upon the Holder any right to
continue to be employed by the Company or any Affiliate or shall interfere with or
restrict in any way the rights of the Company or the Affiliate, which are hereby
expressly reserved, to terminate the employment of the Holder under applicable law.
	 
	 	(i)	 	The Company is not providing any tax, legal or financial advice, nor is the
Company making any recommendations regarding the Holder’s participation in the Plan, or
the Holder’s acquisition or sale of the underlying Shares. The Holder is hereby
advised to consult with his or her own personal tax, legal and financial advisors
regarding his or her participation in the Plan before taking any action related to the
Plan.
	 
	 	(j)	 	The Company reserves the right to impose other requirements on participation in
the Plan, on the Units and on any Shares acquired under the Plan, to the extent the
Company determines it is necessary or advisable in order to comply with local law or to
facilitate the administration of the Plan, and to require the Holders to sign any
additional agreements or undertakings that may be necessary to accomplish the
foregoing.
	 
	 	20.	 	Section 409A.

	 	(a)	 	The delivery of the Holder’s Shares as described in Section 6 shall be made in
accordance with such Section, provided that with respect to delivery due to termination
of employment for reasons other than death, the delivery at such time can be
characterized as a “short-term deferral” for purposes of Section 409A or as otherwise
exempt from the provisions of Section 409A, or if any portion of the delivery cannot be
so characterized, and the Holder is a “specified employee” under Section 409A, such
portion of the delivery shall be delayed until the earlier to occur of the Holder’s
death or the date that is six months and one day following the Holder’s termination of
employment. For purposes of this Agreement, the terms “terminates,” “terminated,”
“termination,” “termination of employment,” and variations thereof, as used in this
Agreement to refer to the Holder’s

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	 	 	 	termination of employment, are intended to mean a termination of employment that
constitutes a “separation from service” under Section 409A.
	 
	 	(b)	 	This Agreement and the Units provided hereunder are intended to comply with
Section 409A to the extent applicable thereto. Notwithstanding any provision of this
Agreement to the contrary, this Agreement shall be interpreted and construed consistent
with this intent. Although the Company and the Committee intend to administer this
Agreement so that it will comply with the requirements of Section 409A, to the extent
applicable, neither the Company nor the Committee represents or warrants that this
Agreement will comply with Section 409A or any other provision of federal, state,
local, or non-United States law. Neither the Company or its Affiliates, nor their
respective directors, officers, employees or advisers shall be liable to any Holder (or
any other individual claiming a benefit through the Holder) for any tax, interest, or
penalties the Holder might owe as a result of participation in the Plan, and the
Company and its Affiliates shall have no obligation to indemnify or otherwise protect
any Holder from the obligation to pay any taxes pursuant to Section 409A.

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

	 	 	 	 	 
	 	COMPANY:

weatherford international ltd.

 	 
	 	By:  	 	 
	 	 	ADDRESS: 	 
	 	 	4-6 Rue Jean-François Bartholoni

Geneva 1204

Switzerland

Attn: Corporate Secretary

Facsimile:  41 22 816 1599 	 
	 
	 	HOLDER:

 	 
	 	 	 
	 	 	 	 
	 	 	 	 
	 

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Annex A—Performance Goals

The Performance Goal used to determine the extent of conversion of the Units in the attached
Agreement into Shares will be the percentile rank of total shareholder return (“TSR”) for
the Shares for each Performance Period (or as otherwise described below). The Performance
Multiplier for each Performance Period will be based on the Company’s TSR performance during the
Performance Period relative to a competitor group composed of Baker Hughes, Inc., Halliburton
Company and Schlumberger Limited (the “Competitor Group”), or, if any of such entities is
no longer publicly traded, then their successor as determined by the Committee.

Each Performance Period will begin on the first NYSE trading day of the relevant Fiscal Year set
forth below and end (subject to Section 4 of the Agreement) on the last NYSE trading day of that
Fiscal Year.

	 	 	 	 	 
	Performance Period	 	 	 	 
	(Fiscal Year)	 	Number of Units	 	Vesting Date
	2010
	 	[insert 1/3]
	 	January 3, 2011
	2011
	 	[insert 1/3]
	 	January 3, 2012
	2012
	 	[insert 1/3]
	 	January 2, 2013

TSR for each Performance Period for the Company and each member of the Competitor Group shall be
calculated as follows, where “Beginning Price” is the closing price on the last NYSE trading day of
the immediately preceding Fiscal Year and “Ending Price” is the closing price on the last NYSE
trading day of the Fiscal Year, in each case, as applied to the applicable equity security and
adjusted, where applicable, for share splits or share dividends, and Cash Dividends means cash
dividends with an ex-dividend date during the Performance Period:

TSR = [(Ending Price — Beginning Price) + Cash Dividends]/Beginning Price

If the Company’s TSR for a Performance Period is the highest among the Competitor Group, the
Performance Multiplier for such Performance Period shall be 2.0. If the Company’s TSR for a
Performance Period is the lowest among the Competitor Group, the Performance Multiplier for such
Performance Period shall be 0.0. If the Company’s TSR for a Performance Period is neither the
highest nor the lowest among the Competitor Group, then the Performance Multiplier shall be derived
based on the percentile rank of the Company’s TSR for the Performance Period as compared to an
array comprised of the TSR for the Performance Period of each member of the Competitor Group (as
determined excluding the Company) pursuant to the following table:

	 	 	 
	TSR Percentile	 	Performance Multiplier
	75+
	 	2.0
	50-74.99
	 	1.0
	25-49.99
	 	0.5
	<25
	 	0.0

For purposes of the preceding sentence, the TSR Percentiles for a Performance Period shall be
determined by measuring the median TSR level for the Competitor Group (excluding the Company),
which shall constitute the 50th percentile, and then applying standard deviation to
determine the 25th and 75th percentiles. Examples of the Performance
Multiplier calculations are set forth on Annex B attached hereto.

9

 

Annex B — Sample Calculations of the Performance Multiplier

The following five examples provide calculation details of hypothetical performance outcomes
of a three peer Competitor Group.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Case 1	 	Case 2	 	Case 3	 	Case 4	 	Case 5
	Sample TSR Results
	 	 	 	 	 	 	 	 	 	 
	Competitor A
	 	55.0%	 	55.0%	 	10.0%	 	28.0%	 	19.0%
	Competitor B
	 	10.0%	 	50.0%	 	25.0%	 	68.0%	 	0.5%
	Competitor C
	 	9.0%	 	9.0%	 	60.0%	 	56.0%	 	-6.0%
	 
	 	 	 	 	 	 	 	 	 	 
	Weatherford International Ltd.
	 	50.0%	 	10.0%	 	65.0%	 	66.0%	 	-5.0%
	Is Weatherford Highest or Lowest?
	 	no	 	no	 	Highest	 	no	 	no
	 
	 	 	 	 	 	 	 	 	 	 
	Competitor Group Standard Deviation
	 	26.3%	 	25.2%	 	n/a	 	20.5%	 	13.0%
	 
	 	 	 	 	 	 	 	 	 	 
	Competitor Group Estimated Percentiles
	 	 	 	 	 	 	 	 	 	 
	75th
	 	27.7%	 	67.0%	 	n/a	 	69.9%	 	9.3%
	Median
	 	10.0%	 	50.0%	 	n/a	 	56.0%	 	0.5%
	25th
	 	-7.7%	 	33.0%	 	n/a	 	42.1%	 	-8.3%
	 
	 	 	 	 	 	 	 	 	 	 
	Weatherford International Ltd. Percentile
	 	>75th	 	<25th	 	Highest	 	68.0%	 	34.3%
	Multiplier Achieved
	 	2.0	 	0.0	 	2.0	 	1.0	 	0.5

			
	Note:	 	The Competitor Group Estimated Percentiles are calculated using the standard deviation of the Group. The median is the median
of the Group.
75th
and
25th
percentiles, respectively, are calculated as median +/- 0.675 times the standard
deviation.

	 	 	 
	Case 1:

	 	The Company achieves the second highest TSR score of 50.0%, which is above the 75th percentile
of the Competitor Group. This earns a 2.0 multiplier.
	 
	 	 
	Case 2:

	 	The Company’s TSR is below the 25th percentile, earning a zero multiplier.
	 
	 	 
	Case 3:

	 	The Company’s achieves the highest TSR versus the Competitor Group, earning a 2.0 multiplier.
	 
	 	 
	Case 4:

	 	The Company’s TSR of 66.0% places them at the 68th percentile and earns a 1.0 multiplier.
	 
	 	 
	Case 5:

	 	The Company achieves a -5.0% TSR, placing them just above the 34th percentile. This earns a
0.5 multiplier.

10

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