Document:

exv10w5

Exhibit 10.5

Form Restricted Stock Unit Award (with additional provisions)

PRIDE INTERNATIONAL, INC.

2007 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

          This Restricted Stock Unit Agreement (“Agreement”) between PRIDE INTERNATIONAL, INC. (the
“Company”) and                      (the “Grantee”), an employee of the Company or one of its
Subsidiaries, regarding an award (“Award”) of                      units of Common Stock (as defined in the
Pride International, Inc. 2007 Long-Term Incentive Plan (the “Plan”), such Common Stock comprising
this Award referred to herein as “Restricted Stock Units”) awarded to the Grantee on                     
(the “Grant Date”), such number of Restricted Stock Units subject to adjustment as provided in
Section 16 of the Plan, and further subject to the following terms and conditions:

          1. Relationship to Plan and Employment Agreement.

          This Award is subject to all of the terms, conditions and provisions of the Plan and
administrative interpretations thereunder, if any, which have been adopted by the Committee
thereunder and are in effect on the date hereof. Except as defined herein, capitalized terms shall
have the same meanings ascribed to them under the Plan. In addition, the parties agree that
notwithstanding any provision herein to the contrary, this Agreement shall be deemed modified by
the provisions of any employment agreement between the Grantee and the Company, and vesting of this
Award shall occur in the event stock options and other awards specifically vest under such
employment agreement. For purposes of this Agreement:

          (a) “Disability” has the meaning set forth in Section 1.409A-3(i)(4)(A) of the Treasury
Regulations and shall be determined by the Committee in its sole discretion.

          (b) “Employment” means employment with the Company or any of its Subsidiaries.

          (c) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (d) “Normal Dividend” means any dividend or distribution on the Common Stock other than a
Special Dividend.

          (e) “Retirement” means the Grantee’s termination of Employment on or after attainment of age
65, or, if applicable to the Grantee, any earlier age specified as the Grantee’s Normal Retirement
Age under the Pride International, Inc. Supplemental Executive Retirement Plan.

          (f) “Special Dividend” means (i) a cash distribution with respect to a share of Common Stock
such that the aggregate of all such distributions (A) when combined with any other cash
distributions to shareholders previously made during the fiscal year exceeds the adjusted net
income of the Company and its Subsidiaries for the preceding fiscal year or

 

 

(B) when combined with
any other cash distributions to shareholders previously made during the fiscal year or during the
three prior fiscal years exceeds the adjusted net income of the Company and its Subsidiaries for
the four preceding years, or (ii) a non-cash distribution the value of which when combined with the
value of any other non-cash distribution to shareholders previously made in during the fiscal year
exceeds 10% of the value of the total assets of the Company and its Subsidiaries. This definition
shall be applied in accordance with the regulations and guidance under PBGC Regulation §
4043.31(a).

          2. Vesting Schedule.

          (a) This Award shall vest in installments in accordance with the following schedule:

	 	 	 	 	 
	 	 	Additional Percentage of
	Date Vested	 	Award Vested
	First anniversary of Grant Date
	 	 	33 1/3	%
	Second anniversary of Grant Date
	 	 	33 1/3	%
	Third anniversary of Grant Date
	 	 	33 1/3	%
	 
	 	 	100	%

          (b) All shares of Restricted Stock Units subject to this Award shall vest, irrespective of the
limitations set forth in subparagraph (a) above, provided that the Grantee has been in continuous
Employment since the Grant Date, upon the occurrence of:

     (i) a Change in Control;

     (ii) the Grantee’s Disability;

     (iii) the Grantee’s termination of Employment by reason of death; or

     (iv) the Grantee’s Termination (as defined in the Grantee’s employment
agreement with the Company and as in effect as of the Grant Date).

          (c) If the Grantee’s termination of Employment occurs due to Retirement prior to the date this
Award fully vests pursuant to subparagraph (a) above, the shares of Restricted Stock Units will
thereafter become payable to the same extent and at the same time as they would have become payable
under subparagraph (a) above or subparagraph (b)(i) above as if the Grantee had remained in
continuous Employment since the Grant Date.

          3. Forfeiture of Award.

          Except as provided in any other agreement between the Grantee and the Company, if the
Grantee’s Employment terminates other than by reason of the Grantee’s Termination (as defined in
the Grantee’s employment agreement with the Company and as in effect as of the Grant Date), death,
Disability or Retirement, all unvested Restricted Stock Units as of the termination date shall be
forfeited.

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          4. Registration of Units.

          The Grantee’s right to receive the Restricted Stock Units shall be evidenced by book entry
registration (or by such other manner as the Committee may determine).

          5. Dividend Equivalent Payments.

          The Company will pay dividend equivalents for each outstanding Restricted Stock Unit as soon
as administratively practicable after Normal Dividends, if any, are paid on the Company’s
outstanding shares of Common Stock; provided, however, that (i) such payment shall be made no later
than March 15th following the year in which the dividends are paid and (ii) the Grantee must be in
Employment as of the date of such payment. Dividend equivalents with respect to Special Dividends
(x) shall be subject to the same vesting schedule as the Restricted Stock Unit for which the
dividend equivalent is awarded and (y) shall be paid at the same time as the Restricted Stock Unit
for which the dividend equivalent is awarded is settled. Dividend equivalents may be paid in the
form of cash, stock or other property, as determined by the Company in its sole discretion;
provided that any dividend equivalent payments shall be in compliance with Section 409A of the Code
and related Treasury authorities.

          6. Shareholder Rights.

          The Grantee shall have no rights of a shareholder with respect to shares of Common Stock
subject to this Award unless and until such time as the Award has been settled by the transfer of
shares of Common Stock to the Grantee.

          7. Settlement and Delivery of Shares.

          Payment of vested Restricted Stock Units shall be made as soon as administratively practicable
after vesting, but in no case later than the March 15th following the year in which vesting occurs.
Settlement will be made by payment in shares of Common Stock.

          The Company shall not be obligated to deliver any shares of Common Stock if counsel to the
Company determines that such sale or delivery would violate any applicable law or any rule or
regulation of any governmental authority or any rule or regulation of, or agreement of the Company
with, any securities exchange or association upon which the Common Stock is listed or quoted. The
Company shall in no event be obligated to take any affirmative action in order to cause the
delivery of shares of Common Stock to comply with any such law, rule, regulation or agreement.

          8. Notices.

          Unless the Company notifies the Grantee in writing of a different procedure, any notice or
other communication to the Company with respect to this Award shall be in writing and shall be:

     (a) by registered or certified United States mail, postage prepaid, to Pride
International, Inc., Attn: Corporate Secretary, 5847 San Felipe, Suite 3300, Houston, Texas
77057; or

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     (b) by hand delivery or otherwise to Pride International, Inc., Attn: Corporate
Secretary, 5847 San Felipe, Suite 3300, Houston, Texas 77057.

          Any notices provided for in this Agreement or in the Plan shall be given in writing and shall
be deemed effectively delivered or given upon receipt or, in the case of notices delivered by the
Company to the Grantee, five days after deposit in the United States mail, postage prepaid,
addressed to the Grantee at the address specified at the end of this Agreement or at such other
address as the Grantee hereafter designates by written notice to the Company.

          9. Assignment of Award.

          Except as otherwise permitted by the Committee, the Grantee’s rights under the Plan and this
Agreement are personal; no assignment or transfer of the Grantee’s rights under and interest in
this Award may be made by the Grantee other than by will or by the laws of descent and
distribution.

          Notwithstanding the foregoing, subject to the approval of the Committee, in its sole
discretion, the Award may be transferred by the Grantee to (i) the children or grandchildren of the
Grantee (“Immediate Family Members”), (ii) a trust or trusts for the exclusive benefit of such
Immediate Family Members (“Immediate Family Member Trusts”) or (iii) a partnership or partnerships
in which such Immediate Family Members have at least 99% of the equity, profit and loss interests
(“Immediate Family Member Partnerships”). Subsequent transfers of a transferred Award shall be
prohibited except by will or the laws of descent and distribution, unless such transfers are made
to the original Grantee or a person to whom the original Grantee could have made a transfer in the
manner described herein. No transfer shall be effective unless and until written notice of such
transfer is provided to the Committee, in the form and manner prescribed by the Committee.
Following transfer, the Award shall continue to be subject to the same terms and conditions as were
applicable immediately prior to transfer, and except as otherwise provided herein, the term
“Grantee” shall be deemed to refer to the transferee. The consequences of termination of
Employment shall continue to be applied with respect to the original Grantee, following which the
Awards shall vest only to the extent specified in the Plan and this Agreement.

          10. Withholding.

          At the time of vesting of Restricted Stock Units or the delivery of shares of Common Stock
attributable to Restricted Stock Units, the amount of all federal, state and other governmental
withholding tax requirements imposed upon the Company with respect to the
vesting of such Restricted Stock Units or the delivery of such shares of Common Stock
attributable to Restricted Stock Units shall be remitted to the Company or provisions to pay such
withholding requirements shall have been made to the satisfaction of the Committee. The Committee
may make such provisions as it may deem appropriate for the withholding of any taxes which it
determines is required in connection with this Award. The Grantee may pay all or any portion of
the taxes required to be withheld by the Company or paid by the Grantee in connection with the all
or any portion of this Award by delivering cash, or by electing to have the Company withhold shares
of Common Stock that would have otherwise been delivered to

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Grantee, or by delivering previously
owned shares of Common Stock, having a Fair Market Value equal to the amount required to be
withheld or paid.

          11. Stock Certificates.

          Certificates representing the Common Stock issued pursuant to the Award will bear all legends
required by law and necessary or advisable to effectuate the provisions of the Plan and this Award.
The Company may place a “stop transfer” order against shares of the Common Stock issued pursuant
to this Award until all restrictions and conditions set forth in the Plan or this Agreement and in
the legends referred to in this Section 11 have been complied with.

          12. Successors and Assigns.

          This Agreement shall bind and inure to the benefit of and be enforceable by the Grantee, the
Company and their respective permitted successors and assigns (including personal representatives,
heirs and legatees), except that the Grantee may not assign any rights or obligations under this
Agreement except to the extent and in the manner expressly permitted herein.

          13. No Employment Guaranteed.

          No provision of this Agreement shall confer any right upon the Grantee to continued
Employment.

          14. Governing Law.

          This Agreement shall be governed by, construed, and enforced in accordance with the laws of
the State of Texas.

          15. Amendment.

          This Agreement cannot be modified, altered or amended except by an agreement, in writing,
signed by both the Company and the Grantee.

          16. Section 409A Compliance.

          It is intended that the provisions of this Agreement satisfy the requirements of Section 409A
of the Code, and the accompanying U.S. Treasury Regulations and pronouncements thereunder, and that
the Agreement be operated in a manner consistent with such requirements to the extent applicable.

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          If the Grantee is identified by the Company as a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Code on the date on which the Grantee has a “separation from
service” (other than due to death) within the meaning of
Treasury Regulation Section 1.409A-1(h),
notwithstanding the provisions of Section 7 hereof, any transfer of shares payable on account of a
separation from service that are deferred compensation shall take place on the earlier of (i) the
first business day following the expiration of six months from the Grantee’s separation from
service, (ii) the date of the Grantee’s death, or (iii) such earlier date as complies with the
requirements of Section 409A of the Code.

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Exhibit 10.1

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is entered into as of
December 31, 2008, by and between Weatherford International Ltd., a Bermuda exempted company (the
“Company”), and Jessica Abarca (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Board has previously determined that it is in the best interests of the Company
and its shareholders to retain the Executive and to induce the employment of the Executive for the
long-term benefit of the Company;

     WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide
services to the Company and its affiliated companies, and the Executive is willing to accept such
employment and provide such services on the terms set forth in this Agreement;

     WHEREAS, the Company and the Executive previously entered into an employment agreement (the
“Employment Agreement”) dated and effective as of October 27, 2006 (“the Effective Date”);

     WHEREAS, the Company and the Executive desire to amend and restate the Employment Agreement as
set forth in this Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and the final Department of Treasury regulations issued thereunder; and

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree that effective as of December 31, 2008 the
Employment Agreement is hereby amended and restated to provide as follows:

1. Certain Definitions.

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

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

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’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 Executive pursuant to Section 4(c)), after a written demand for substantial
performance is delivered to the Executive by the Board which specifically

 

 

identifies the manner in which the Executive has not substantially performed the Executive’s
duties, or

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

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

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

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) 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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or

          (iii) the consummation of a reorganization, merger, amalgamation, consolidation, scheme of
arrangement, exchange offer or similar transaction of the Company or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the

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Company’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the case may be, (A) all of the
individuals and entities (which, for purposes of this Agreement, shall include, without limitation,
any corporation, partnership, association, joint-stock company, limited liability company, trust,
unincorporated organization or other business entity) who were the beneficial owners, respectively,
of the Outstanding Company Common Shares and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction beneficially own, directly or indirectly, more than sixty-six
and two-thirds percent (66-2/3%) of, respectively, the then outstanding 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 (1) or more subsidiaries or entities) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common
Shares 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, twenty percent (20%) or more of, respectively, the then outstanding shares
of common stock of the entity resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such entity except to the extent that such
ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the
members of the board of directors (or other governing body) of the entity resulting from such
Corporate Transaction were members of the Incumbent Board at the time of the approval of such
Corporate Transaction; or

          (iv) Approval or adoption by the Board of Directors or the shareholders of the 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” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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

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

     (i) “Employment Period” shall mean the period commencing on the Effective Date and ending on
the third anniversary of the Effective Date; provided, however, that commencing on the date one
year after the Effective Date, and on each annual anniversary of such date (such

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date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Employment Period shall be automatically extended so as
to terminate three (3) years after such Renewal Date, unless at least sixty (60) days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be
so extended.

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

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

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

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

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

          (iii) any failure by the Company or any Subsidiary to continue to provide the Executive with
benefits currently or previously enjoyed by the Executive under any of the Company’s or any
Subsidiary’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 Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

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

          (v) any purported termination by the Company of the Executive’s employment;

          (vi) any failure by the Company to comply with and satisfy Section 9(b) of this Agreement;

          (vii) failure of the Company (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive

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prior to the termination or expiration of this Agreement, with such employment agreement and
executive retirement plan having the same terms and conditions as existed in agreements and plans
between the Company and the Executive prior to December 30, 2008, and incorporating such terms and
conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

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

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

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

     (m) “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, (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.

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

     (o) “Section 409A Amounts” means those amounts that are deferred compensation subject to
Section 409A.

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

2. Employment Period. The Company hereby agrees that the Company will continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the
terms and conditions of this Agreement during the Employment Period. During the Employment Period,
the Executive may be seconded to the employment of Weatherford U.S., L.P. (or such other affiliated
entity) (the “Seconded Affiliate Company”), but without prejudice to the Company’s obligations or
the Executive’s rights under this Agreement. The Executive shall carry out his/her duties as if
they were duties to be performed on behalf of

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the Company. Each Seconded Affiliate Company shall be subject to all of the obligations and
agreements of the Company under this Agreement and the Company shall be responsible for actions and
inactions of the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to constitute a breach
or failure to abide by the Company.

3. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles, authority, duties and responsibilities) shall be Vice President – Accounting and Chief
Accounting Officer of the Company and (B) the Executive’s services shall be performed at the
Company’s executive office in Houston, Texas or other locations less than thirty-five (35) miles
from such location.

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities in clause (A), (B), and (C) together do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance
with this Agreement. It is expressly understood and agreed that to the extent that such activities
have been conducted by the Executive prior to the date hereof, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto) subsequent to the
date hereof shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual base
salary equal to the current base salary being received by the Executive (“Annual Base Salary”),
which shall be paid at a monthly rate. During the Employment Period, the Annual Base Salary shall
be reviewed no more than twelve (12) months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually; provided, however, that a salary
increase shall not necessarily be awarded as a result of such review. Any increase in Annual Base
Salary may not serve to limit or reduce any other obligation to the Executive under this Agreement.
Annual Base Salary shall not be reduced after any such increase. The term Annual Base Salary as
utilized in this Agreement shall refer to Annual Base Salary as so increased.

          (ii) Annual Bonus. The Executive shall be eligible for an annual bonus for each fiscal year
ending during the Employment Period on the same basis as other executive

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officers under the Company’s executive officer annual incentive program. Each such Annual
Bonus shall be paid no later than 2-1/2 months after the fiscal year for which the Annual Bonus is
awarded.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to all executive officers of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect on the date hereof. As
used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible to participate in and shall receive all
benefits under welfare benefit and retirement plans, practices, policies and programs provided by
the Company and its affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to all executive officers
of the Company and its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in the aggregate, than
the most favorable of those provided by the Company and its affiliated companies for the Executive
under than such plans, practices, policies and programs of the Company and its affiliated companies
in effect for the Executive on the date hereof.

          (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to (A) a
monthly car allowance and (B) such other fringe benefits (including, without limitation, payment of
club dues, financial planning services, cellular telephone, mobile email, annual physical
examinations, payment of professional fees and professional taxes and payment of related expenses,
as appropriate) in accordance with the most favorable plans, practices, programs and policies of
the Company and its affiliated companies in effect for the Executive on the date hereof.
Notwithstanding the foregoing, effective December 31, 2008, no amounts shall be payable under this
Section 3(b)(v) to the extent that such amounts are Section 409A Amounts.

          (vi) Expenses. During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the foregoing, effective December 31,
2008, no amounts shall be payable under this Section 3(b)(vi) to the extent that such amounts are
Section 409A Amounts.

          (vii) Vacation. During the Employment Period, the Executive shall be entitled to at least
three (3) weeks paid vacation or such greater amount of paid vacation as may be applicable to the
executive officers of the Company and its affiliated companies.

 - 7 - 

 

          (viii) Deferred Compensation Plan. During the Employment Period, the Executive shall be
entitled to continue to participate in any deferred compensation or similar plans in which
executive officers of the Company and its affiliated companies participate.

4. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with Section 10(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective thirty (30) days after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that within the thirty (30)-day period after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. In
addition, if a physician selected by the Executive determines that the Disability of the Executive
has occurred, the Executive (or his representative) may provide the Company with written notice in
accordance with Section 10(b) of this Agreement of the Executive’s intention to terminate his
employment. In such event, the Disability Effective Date shall be thirty (30) days after receipt
of such notice by the Company.

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

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

     (d) Notice of Termination. Any termination during the Employment Period by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the termination date
(which date, in the case of a notice by the Company, shall be not more than 30 days after the
giving of such notice). The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights hereunder.

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

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

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

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

5. Obligations of the Company Upon Termination.

     (a) Benefit Obligation and Accrued Obligation Defined. For purposes of this Agreement,
Benefit Obligation shall mean all benefits to which the Executive (or his designated beneficiary or
legal representative, as applicable) is entitled or vested (or becomes entitled or vested as a
result of termination) under the terms of all employee benefit and compensation plans, agreements
and arrangements (collectively, “Benefit Plans”) in which the Executive is a participant as of the
Date of Termination. Accrued Obligation means the sum of (1) the Executive’s Annual Base Salary
through the Date of Termination for periods through but not following his Separation From Service
and (2) any accrued vacation pay earned by the Executive, in each case, to the extent not
theretofore paid.

     (b) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period,
the Executive’s employment is terminated by reason of the Executive’s death or Disability, by the
Company for any reason other than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable) in a lump sum in cash within thirty (30) days after the Date of
Termination the Accrued Obligation; and

          (ii) The Company shall pay or cause the Executive to be paid the Benefit Obligation at the
times specified in and in accordance with the terms of the applicable Benefit Plans.

     (c) Cause. If the Executive’s employment is terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) the Accrued Obligation and (y) the Benefit Obligation in
accordance with the terms of the applicable Benefit Plans.

     (d) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period for any reason other than for Good Reason,
the Executive’s employment shall terminate without further obligations to the Executive, other than
for payment of the Accrued Obligation and the Benefit Obligation and the rights provided in Section
6. In such case, the Accrued Obligation shall be paid to the Executive in a lump sum in cash
within thirty (30) days after the Date of Termination and the Benefit Obligation shall be paid in
accordance with the terms of the applicable Benefit Plans.

 - 9 - 

 

6. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any contract
or agreement with the Company or any of its affiliated companies. Except as otherwise provided
herein, amounts which are vested benefits, which vest according to the terms of this Agreement or
which the Executive is otherwise entitled to receive under any of the Benefit Plans or any other
plan, policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement.

7. Full Settlement.

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

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

8. Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data relating to the Company or
any of its affiliated companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive’s employment by the Company or any of its affiliated companies,
provided that it shall not apply to information which is or shall become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation of this Agreement),
information that is developed by the Executive independently of such information, or knowledge or
data or information that is disclosed to the Executive by a third party under no obligation of
confidentiality to the Company. After termination of the Executive’s employment with the Company,
the Executive shall not, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an asserted violation
of the provision of this Section 8 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

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9. Successors.

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

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

10. Miscellaneous.

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

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

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Jessica Abarca
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Weatherford International Ltd.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

 - 11 - 

 

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

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

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

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

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

 - 12 - 

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Jessica Abarca
 

Jessica Abarca
	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner
 

Bernard J. Duroc-Danner
	 	 
	 

	 	 	 	Chairman, President & Chief Executive Officer	 	 

 - 13 - 

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is entered into as of
December 31, 2008, by and between Weatherford International Ltd., a Bermuda exempted company (the
“Company”), and Andrew P. Becnel (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Board has previously determined that it is in the best interests of the Company
and its shareholders to retain the Executive and to induce the employment of the Executive for the
long-term benefit of the Company;

     WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide
services to the Company and its affiliated companies, and the Executive is willing to accept such
employment and provide such services on the terms set forth in this Agreement;

     WHEREAS, the Company and the Executive previously entered into an employment agreement (the
“Employment Agreement”) dated and effective as of October 27, 2006 (“the Effective Date”);

     WHEREAS, the Company and the Executive desire to amend and restate the Employment Agreement as
set forth in this Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and the final Department of Treasury regulations issued thereunder; and

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree that effective as of December 31, 2008 the
Employment Agreement is hereby amended and restated to provide as follows:

1. Certain Definitions.

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

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

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’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 Executive pursuant to Section 4(c)), after a written demand for substantial
performance is delivered to the Executive by the Board which specifically

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identifies the manner in which the Executive has not substantially performed the Executive’s
duties, or

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

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

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

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) 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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or

          (iii) the consummation of a reorganization, merger, amalgamation, consolidation, scheme of
arrangement, exchange offer or similar transaction of the Company or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the

 - 2 - 

 

Company’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the case may be, (A) all of the
individuals and entities (which, for purposes of this Agreement, shall include, without limitation,
any corporation, partnership, association, joint-stock company, limited liability company, trust,
unincorporated organization or other business entity) who were the beneficial owners, respectively,
of the Outstanding Company Common Shares and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction beneficially own, directly or indirectly, more than sixty-six
and two-thirds percent (66-2/3%) of, respectively, the then outstanding 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 (1) or more subsidiaries or entities) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common
Shares 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, twenty percent (20%) or more of, respectively, the then outstanding shares
of common stock of the entity resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such entity except to the extent that such
ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the
members of the board of directors (or other governing body) of the entity resulting from such
Corporate Transaction were members of the Incumbent Board at the time of the approval of such
Corporate Transaction; or

          (iv) Approval or adoption by the Board of Directors or the shareholders of the 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” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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

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

     (i) “Employment Period” shall mean the period commencing on the Effective Date and ending on
the third anniversary of the Effective Date; provided, however, that commencing on the date one
year after the Effective Date, and on each annual anniversary of such date (such

 - 3 - 

 

date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Employment Period shall be automatically extended so as
to terminate three (3) years after such Renewal Date, unless at least sixty (60) days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be
so extended.

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

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

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

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of this
Agreement, or any other action by the Company or any Subsidiary 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 Executive;

          (ii) any failure by the Company or any Subsidiary to comply with any of the provisions of this
Agreement (including, without limitation, its obligations under Section 3(a)) or any other
agreements between the Executive and the Company or any Subsidiary, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the
Company, or a Subsidiary, as appropriate, promptly after receipt of notice thereof given by the
Executive;

          (iii) any failure by the Company or any Subsidiary to continue to provide the Executive with
benefits currently or previously enjoyed by the Executive under any of the Company’s or any
Subsidiary’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 Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

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

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

          (vi) any failure by the Company to comply with and satisfy Section 9(b) of this Agreement;

 - 4 - 

 

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

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

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

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

     (m) “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, (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.

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

     (o) “Section 409A Amounts” means those amounts that are deferred compensation subject to
Section 409A.

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

2. Employment Period. The Company hereby agrees that the Company will continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the
terms and conditions of this Agreement during the Employment Period. During the Employment Period,
the Executive, with his/her prior express agreement, may be seconded to the employment of
Weatherford U.S., L.P. (or such other affiliated entity as

 - 5 - 

 

specifically agreed by the Executive) (the “Seconded Affiliate Company”), but without prejudice to
the Company’s obligations or the Executive’s rights under this Agreement. The Executive shall
carry out his/her duties as if they were duties to be performed on behalf of the Company. Each
Seconded Affiliate Company shall be subject to all of the obligations and agreements of the Company
under this Agreement and the Company shall be responsible for actions and inactions of the Seconded
Affiliate Company. Any breach or failure to abide by the terms and conditions of this Agreement by
a Seconded Affiliate Company shall be deemed to constitute a breach or failure to abide by the
Company. The Executive has the right, in his/her sole discretion, to revoke his/her agreement to
be seconded to the employment of any Seconded Affiliate Company at any time.

3. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles, reporting requirements, authority, duties and responsibilities) shall be Senior Vice
President and Chief Financial Officer of the Company, (B) the Executive’s services shall be
performed at the Company’s executive office in Houston, Texas or other locations less than
thirty-five (35) miles from such location and (C) the Executive will report directly to the
Company’s Chief Executive Officer.

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities in clause (A), (B), and (C) together do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance
with this Agreement. It is expressly understood and agreed that to the extent that such activities
have been conducted by the Executive prior to the date hereof, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto) subsequent to the
date hereof shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual base
salary equal to the current base salary being received by the Executive (“Annual Base Salary”),
which shall be paid at a monthly rate. During the Employment Period, the Annual Base Salary shall
be reviewed no more than twelve (12) months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually; provided, however, that a salary
increase shall not necessarily be awarded as a result of such review. Any increase in Annual Base
Salary may not serve to limit or reduce any other obligation to the

 - 6 - 

 

Executive under this Agreement. Annual Base Salary shall not be reduced after any such
increase. The term Annual Base Salary as utilized in this Agreement shall refer to Annual Base
Salary as so increased.

          (ii) Annual Bonus. The Executive shall be eligible for an annual bonus for each fiscal year
ending during the Employment Period on the same basis as other executive officers under the
Company’s executive officer annual incentive program. Each such Annual Bonus shall be paid no
later than 2-1/2 months after the fiscal year for which the Annual Bonus is awarded.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to all executive officers of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect on the date hereof. As
used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible to participate in and shall receive all
benefits under welfare benefit and retirement plans, practices, policies and programs provided by
the Company and its affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to all executive officers
of the Company and its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in the aggregate, than
the most favorable of those provided by the Company and its affiliated companies for the Executive
under than such plans, practices, policies and programs of the Company and its affiliated companies
in effect for the Executive on the date hereof.

          (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to (A) at
Executive’s option, a monthly car allowance or use of an automobile and (B) such other fringe
benefits (including, without limitation, payment of club dues, financial planning services,
cellular telephone, mobile email, annual physical examinations, payment of professional fees and
professional taxes and payment of related expenses, as appropriate) in accordance with the most
favorable plans, practices, programs and policies of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the foregoing, effective December 31,
2008, no amounts shall be payable under this Section 3(b)(v) to the extent that such amounts are
Section 409A Amounts.

          (vi) Expenses. During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Company and its

 - 7 - 

 

affiliated companies in effect for the Executive on the date hereof. Notwithstanding the
foregoing, effective December 31, 2008, no amounts shall be payable under this Section 3(b)(vi) to
the extent that such amounts are Section 409A Amounts.

          (vii) Vacation. During the Employment Period, the Executive shall be entitled to at least
four (4) weeks paid vacation or such greater amount of paid vacation as may be applicable to the
executive officers of the Company and its affiliated companies.

          (viii) Deferred Compensation Plan. During the Employment Period, the Executive shall be
entitled to continue to participate in any deferred compensation or similar plans in which
executive officers of the Company and its affiliated companies participate.

4. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with Section 10(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective thirty (30) days after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that within the thirty (30)-day period after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. In
addition, if a physician selected by the Executive determines that the Disability of the Executive
has occurred, the Executive (or his representative) may provide the Company with written notice in
accordance with Section 10(b) of this Agreement of the Executive’s intention to terminate his
employment. In such event, the Disability Effective Date shall be thirty (30) days after receipt
of such notice by the Company.

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

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

     (d) Notice of Termination. Any termination during the Employment Period by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the termination date
(which date, in the case of a notice by the Company, shall be not more than 30 days after the
giving of such notice). The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively,

 - 8 - 

 

from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights
hereunder.

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

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

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

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

5. Obligations of the Company Upon Termination.

     (a) Benefit Obligation and Accrued Obligation Defined. For purposes of this Agreement,
Benefit Obligation shall mean all benefits to which the Executive (or his designated beneficiary or
legal representative, as applicable) is entitled or vested (or becomes entitled or vested as a
result of termination) under the terms of all employee benefit and compensation plans, agreements
and arrangements (collectively, “Benefit Plans”) in which the Executive is a participant as of the
Date of Termination. Accrued Obligation means the sum of (1) the Executive’s Annual Base Salary
through the Date of Termination for periods through but not following his Separation From Service
and (2) any accrued vacation pay earned by the Executive, in each case, to the extent not
theretofore paid.

     (b) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period,
the Executive’s employment is terminated by reason of the Executive’s death or Disability, by the
Company for any reason other than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable) in a lump sum in cash within thirty (30) days after the Date of
Termination the Accrued Obligation; and

          (ii) The Company shall pay or cause the Executive to be paid the Benefit Obligation at the
times specified in and in accordance with the terms of the applicable Benefit Plans.

     (c) Cause. If the Executive’s employment is terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) the Accrued Obligation and (y) the Benefit Obligation in
accordance with the terms of the applicable Benefit Plans.

 - 9 - 

 

     (d) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period for any reason other than for Good Reason,
the Executive’s employment shall terminate without further obligations to the Executive, other than
for payment of the Accrued Obligation and the Benefit Obligation and the rights provided in Section
6. In such case, the Accrued Obligation shall be paid to the Executive in a lump sum in cash
within thirty (30) days after the Date of Termination and the Benefit Obligation shall be paid in
accordance with the terms of the applicable Benefit Plans.

6. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any contract
or agreement with the Company or any of its affiliated companies. Except as otherwise provided
herein, amounts which are vested benefits, which vest according to the terms of this Agreement or
which the Executive is otherwise entitled to receive under any of the Benefit Plans or any other
plan, policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement.

7. Full Settlement.

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

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

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

 - 10 - 

 

or divulge any such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provision of this Section 8
constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

9. Successors.

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

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

10. Miscellaneous.

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

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

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Andrew P. Becnel
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027

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	 	If to the Company:
	 	Weatherford International Ltd.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

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

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

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

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

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

 - 12 - 

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Andrew P. Becnel
 

Andrew P. Becnel
	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner
 

Bernard J. Duroc-Danner
	 	 
	 

	 	 	 	Chairman, President & Chief Executive Officer	 	 

 - 13 - 

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is entered into as of
December 31, 2008, by and between Weatherford International Ltd., a Bermuda exempted company (the
“Company”), and M. David Colley (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Board has previously determined that it is in the best interests of the Company
and its shareholders to retain the Executive and to induce the employment of the Executive for the
long-term benefit of the Company;

     WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide
services to the Company and its affiliated companies, and the Executive is willing to accept such
employment and provide such services on the terms set forth in this Agreement;

     WHEREAS, the Company and the Executive previously entered into an employment agreement (the
“Employment Agreement”) dated and effective as of August 1, 2003 (“the Effective Date”);

     WHEREAS, the Company and the Executive desire to amend and restate the Employment Agreement as
set forth in this Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and the final Department of Treasury regulations issued thereunder; and

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree that effective as of December 31, 2008 the
Employment Agreement is hereby amended and restated to provide as follows:

1. Certain Definitions.

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

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

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’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 Executive pursuant to Section 4(c)), after a written demand for substantial
performance is delivered to the Executive by the Board which specifically

 - 1 - 

 

identifies the manner in which the Executive has not substantially performed the Executive’s
duties, or

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

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

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

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) 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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or

          (iii) the consummation of a reorganization, merger, amalgamation, consolidation, scheme of
arrangement, exchange offer or similar transaction of the Company or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the

 - 2 - 

 

Company’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the case may be, (A) all of the
individuals and entities (which, for purposes of this Agreement, shall include, without limitation,
any corporation, partnership, association, joint-stock company, limited liability company, trust,
unincorporated organization or other business entity) who were the beneficial owners, respectively,
of the Outstanding Company Common Shares and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction beneficially own, directly or indirectly, more than sixty-six
and two-thirds percent (66-2/3%) of, respectively, the then outstanding 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 (1) or more subsidiaries or entities) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common
Shares 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, twenty percent (20%) or more of, respectively, the then outstanding shares
of common stock of the entity resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such entity except to the extent that such
ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the
members of the board of directors (or other governing body) of the entity resulting from such
Corporate Transaction were members of the Incumbent Board at the time of the approval of such
Corporate Transaction; or

          (iv) Approval or adoption by the Board of Directors or the shareholders of the 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” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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

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

     (i) “Employment Period” shall mean the period commencing on the Effective Date and ending on
the third anniversary of the Effective Date; provided, however, that commencing on the date one
year after the Effective Date, and on each annual anniversary of such date (such

 - 3 - 

 

date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Employment Period shall be automatically extended so as
to terminate three (3) years after such Renewal Date, unless at least sixty (60) days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be
so extended.

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

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

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

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

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

          (iii) any failure by the Company or any Subsidiary to continue to provide the Executive with
benefits currently or previously enjoyed by the Executive under any of the Company’s or any
Subsidiary’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 Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

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

          (v) any purported termination by the Company of the Executive’s employment;

          (vi) any failure by the Company to comply with and satisfy Section 9(b) of this Agreement;

          (vii) failure of the Company (including any successor) to agree, execute and enter into a new
employment agreement and a new executive retirement plan with the Executive

 - 4 - 

 

prior to the termination or expiration of this Agreement, with such employment agreement and
executive retirement plan having the same terms and conditions as existed in agreements and plans
between the Company and the Executive prior to December 30, 2008, and incorporating such terms and
conditions that are more favorable to the Executive from all agreements and retirement plans
existing on January 1, 2009; or

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

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

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

     (m) “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, (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.

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

     (o) “Section 409A Amounts” means those amounts that are deferred compensation subject to
Section 409A.

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

2. Employment Period. The Company hereby agrees that the Company will continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the
terms and conditions of this Agreement during the Employment Period. During the Employment Period,
the Executive may be seconded to the employment of Weatherford U.S., L.P. (or such other affiliated
entity) (the “Seconded Affiliate Company”), but without prejudice to the Company’s obligations or
the Executive’s rights under this Agreement. The Executive shall carry out his/her duties as if
they were duties to be performed on behalf of

 - 5 - 

 

the Company. Each Seconded Affiliate Company shall be subject to all of the obligations and
agreements of the Company under this Agreement and the Company shall be responsible for actions and
inactions of the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to constitute a breach
or failure to abide by the Company.

3. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles, authority, duties and responsibilities) shall be Vice President – Artificial Lift Systems
of the Company and (B) the Executive’s services shall be performed at the Company’s executive
office in Houston, Texas or other locations less than thirty-five (35) miles from such location.

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities in clause (A), (B), and (C) together do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance
with this Agreement. It is expressly understood and agreed that to the extent that such activities
have been conducted by the Executive prior to the date hereof, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto) subsequent to the
date hereof shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual base
salary equal to the current base salary being received by the Executive (“Annual Base Salary”),
which shall be paid at a monthly rate. During the Employment Period, the Annual Base Salary shall
be reviewed no more than twelve (12) months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually; provided, however, that a salary
increase shall not necessarily be awarded as a result of such review. Any increase in Annual Base
Salary may not serve to limit or reduce any other obligation to the Executive under this Agreement.
Annual Base Salary shall not be reduced after any such increase. The term Annual Base Salary as
utilized in this Agreement shall refer to Annual Base Salary as so increased.

          (ii) Annual Bonus. The Executive shall be eligible for an annual bonus for each fiscal year
ending during the Employment Period on the same basis as other executive

 - 6 - 

 

officers under the Company’s executive officer annual incentive program. Each such Annual
Bonus shall be paid no later than 2-1/2 months after the fiscal year for which the Annual Bonus is
awarded.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to all executive officers of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect on the date hereof. As
used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible to participate in and shall receive all
benefits under welfare benefit and retirement plans, practices, policies and programs provided by
the Company and its affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to all executive officers
of the Company and its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in the aggregate, than
the most favorable of those provided by the Company and its affiliated companies for the Executive
under than such plans, practices, policies and programs of the Company and its affiliated companies
in effect for the Executive on the date hereof.

          (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to (A) a
monthly car allowance and (B) such other fringe benefits (including, without limitation, payment of
club dues, financial planning services, cellular telephone, mobile email, annual physical
examinations, payment of professional fees and professional taxes and payment of related expenses,
as appropriate) in accordance with the most favorable plans, practices, programs and policies of
the Company and its affiliated companies in effect for the Executive on the date hereof.
Notwithstanding the foregoing, effective December 31, 2008, no amounts shall be payable under this
Section 3(b)(v) to the extent that such amounts are Section 409A Amounts.

          (vi) Expenses. During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the foregoing, effective December 31,
2008, no amounts shall be payable under this Section 3(b)(vi) to the extent that such amounts are
Section 409A Amounts.

          (vii) Vacation. During the Employment Period, the Executive shall be entitled to at least
three (3) weeks paid vacation or such greater amount of paid vacation as may be applicable to the
executive officers of the Company and its affiliated companies.

 - 7 - 

 

          (viii) Deferred Compensation Plan. During the Employment Period, the Executive shall be
entitled to continue to participate in any deferred compensation or similar plans in which
executive officers of the Company and its affiliated companies participate.

4. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with Section 10(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective thirty (30) days after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that within the thirty (30)-day period after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. In
addition, if a physician selected by the Executive determines that the Disability of the Executive
has occurred, the Executive (or his representative) may provide the Company with written notice in
accordance with Section 10(b) of this Agreement of the Executive’s intention to terminate his
employment. In such event, the Disability Effective Date shall be thirty (30) days after receipt
of such notice by the Company.

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

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

     (d) Notice of Termination. Any termination during the Employment Period by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the termination date
(which date, in the case of a notice by the Company, shall be not more than 30 days after the
giving of such notice). The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights hereunder.

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

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

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

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

5. Obligations of the Company Upon Termination.

     (a) Benefit Obligation and Accrued Obligation Defined. For purposes of this Agreement,
Benefit Obligation shall mean all benefits to which the Executive (or his designated beneficiary or
legal representative, as applicable) is entitled or vested (or becomes entitled or vested as a
result of termination) under the terms of all employee benefit and compensation plans, agreements
and arrangements (collectively, “Benefit Plans”) in which the Executive is a participant as of the
Date of Termination. Accrued Obligation means the sum of (1) the Executive’s Annual Base Salary
through the Date of Termination for periods through but not following his Separation From Service
and (2) any accrued vacation pay earned by the Executive, in each case, to the extent not
theretofore paid.

     (b) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period,
the Executive’s employment is terminated by reason of the Executive’s death or Disability, by the
Company for any reason other than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable) in a lump sum in cash within thirty (30) days after the Date of
Termination the Accrued Obligation; and

          (ii) The Company shall pay or cause the Executive to be paid the Benefit Obligation at the
times specified in and in accordance with the terms of the applicable Benefit Plans.

     (c) Cause. If the Executive’s employment is terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) the Accrued Obligation and (y) the Benefit Obligation in
accordance with the terms of the applicable Benefit Plans.

     (d) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period for any reason other than for Good Reason,
the Executive’s employment shall terminate without further obligations to the Executive, other than
for payment of the Accrued Obligation and the Benefit Obligation and the rights provided in Section
6. In such case, the Accrued Obligation shall be paid to the Executive in a lump sum in cash
within thirty (30) days after the Date of Termination and the Benefit Obligation shall be paid in
accordance with the terms of the applicable Benefit Plans.

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6. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any contract
or agreement with the Company or any of its affiliated companies. Except as otherwise provided
herein, amounts which are vested benefits, which vest according to the terms of this Agreement or
which the Executive is otherwise entitled to receive under any of the Benefit Plans or any other
plan, policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement.

7. Full Settlement.

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

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

8. Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data relating to the Company or
any of its affiliated companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive’s employment by the Company or any of its affiliated companies,
provided that it shall not apply to information which is or shall become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation of this Agreement),
information that is developed by the Executive independently of such information, or knowledge or
data or information that is disclosed to the Executive by a third party under no obligation of
confidentiality to the Company. After termination of the Executive’s employment with the Company,
the Executive shall not, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an asserted violation
of the provision of this Section 8 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

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9. Successors.

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

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

10. Miscellaneous.

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

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

	 	 	 	 	 
	 

	 	If to the Executive:
	 	M. David Colley
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Weatherford International Ltd.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

 - 11 - 

 

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

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

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

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

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

 - 12 - 

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ M. David Colley
 

M. David Colley
	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner
 

Bernard J. Duroc-Danner
	 	 
	 

	 	 	 	Chairman, President & Chief Executive Officer	 	 

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AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is entered into as of
December 31, 2008, by and between Weatherford International Ltd., a Bermuda exempted company (the
“Company”), and Bernard J. Duroc-Danner (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Board has previously determined that it is in the best interests of the Company
and its shareholders to retain the Executive and to induce the employment of the Executive for the
long-term benefit of the Company;

     WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide
services to the Company and its affiliated companies, and the Executive is willing to accept such
employment and provide such services on the terms set forth in this Agreement;

     WHEREAS, the Company and the Executive previously entered into an employment agreement (the
“Employment Agreement”) dated and effective as of August 1, 2003 (“the Effective Date”);

     WHEREAS, the Company and the Executive desire to amend and restate the Employment Agreement as
set forth in this Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and the final Department of Treasury regulations issued thereunder; and

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree that effective as of December 31, 2008 the
Employment Agreement is hereby amended and restated to provide as follows:

1. Certain Definitions.

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

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

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’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 Executive pursuant to Section 4(c)), after a written demand for substantial
performance is delivered to the Executive by the Board which specifically

- 1 -

 

identifies the manner in which the Executive has not substantially performed the Executive’s
duties, or

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

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

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

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) 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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or

          (iii) the consummation of a reorganization, merger, amalgamation, consolidation, scheme of
arrangement, exchange offer or similar transaction of the Company or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the

- 2 -

 

Company’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the case may be, (A) all of the
individuals and entities (which, for purposes of this Agreement, shall include, without limitation,
any corporation, partnership, association, joint-stock company, limited liability company, trust,
unincorporated organization or other business entity) who were the beneficial owners, respectively,
of the Outstanding Company Common Shares and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction beneficially own, directly or indirectly, more than sixty-six
and two-thirds percent (66-2/3%) of, respectively, the then outstanding 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 (1) or more subsidiaries or entities) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common
Shares 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, twenty percent (20%) or more of, respectively, the then outstanding shares
of common stock of the entity resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such entity except to the extent that such
ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the
members of the board of directors (or other governing body) of the entity resulting from such
Corporate Transaction were members of the Incumbent Board at the time of the approval of such
Corporate Transaction; or

          (iv) Approval or adoption by the Board of Directors or the shareholders of the 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” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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

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

     (i) “Employment Period” shall mean the period commencing on the Effective Date and ending on
the third anniversary of the Effective Date; provided, however, that commencing on the date one
year after the Effective Date, and on each annual anniversary of such date (such

- 3 -

 

date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Employment Period shall be automatically extended so as
to terminate three (3) years after such Renewal Date, unless at least sixty (60) days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be
so extended.

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

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

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

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of this
Agreement, or any other action by the Company or any Subsidiary 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 Executive;

          (ii) any failure by the Company or any Subsidiary to comply with any of the provisions of this
Agreement (including, without limitation, its obligations under Section 3(a)) or any other
agreements between the Executive and the Company or any Subsidiary, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the
Company, or a Subsidiary, as appropriate, promptly after receipt of notice thereof given by the
Executive;

          (iii) any failure by the Company or any Subsidiary to continue to provide the Executive with
benefits currently or previously enjoyed by the Executive under any of the Company’s or any
Subsidiary’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 Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

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

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

          (vi) any failure by the Company to comply with and satisfy Section 9(b) of this Agreement;

- 4 -

 

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

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

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

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

     (m) “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, (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.

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

     (o) “Section 409A Amounts” means those amounts that are deferred compensation subject to
Section 409A.

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

2. Employment Period. The Company hereby agrees that the Company will continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the
terms and conditions of this Agreement during the Employment Period. During the Employment Period,
the Executive, with his/her prior express agreement, may be seconded to the employment of
Weatherford U.S., L.P. (or such other affiliated entity as

- 5 -

 

specifically agreed by the Executive) (the “Seconded Affiliate Company”), but without prejudice to
the Company’s obligations or the Executive’s rights under this Agreement. The Executive shall
carry out his/her duties as if they were duties to be performed on behalf of the Company. Each
Seconded Affiliate Company shall be subject to all of the obligations and agreements of the Company
under this Agreement and the Company shall be responsible for actions and inactions of the Seconded
Affiliate Company. Any breach or failure to abide by the terms and conditions of this Agreement by
a Seconded Affiliate Company shall be deemed to constitute a breach or failure to abide by the
Company. The Executive has the right, in his/her sole discretion, to revoke his/her agreement to
be seconded to the employment of any Seconded Affiliate Company at any time.

3. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles, reporting requirements, authority, duties and responsibilities) shall be Chairman of the
Board, President and Chief Executive Officer of the Company and (B) the Executive’s services shall
be performed at the Company’s executive office in Houston, Texas or other locations less than
thirty-five (35) miles from such location.

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities in clause (A), (B), and (C) together do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance
with this Agreement. It is expressly understood and agreed that to the extent that such activities
have been conducted by the Executive prior to the date hereof, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto) subsequent to the
date hereof shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual base
salary equal to the current base salary being received by the Executive (“Annual Base Salary”),
which shall be paid at a monthly rate. During the Employment Period, the Annual Base Salary shall
be reviewed no more than twelve (12) months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually; provided, however, that a salary
increase shall not necessarily be awarded as a result of such review. Any increase in Annual Base
Salary may not serve to limit or reduce any other obligation to the Executive under this Agreement.
Annual Base Salary shall not be reduced after any such

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increase. The term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.

          (ii) Annual Bonus. The Executive shall be eligible for an annual bonus for each fiscal year
ending during the Employment Period on the same basis as other executive officers under the
Company’s executive officer annual incentive program. Each such Annual Bonus shall be paid no
later than 2-1/2 months after the fiscal year for which the Annual Bonus is awarded.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to all executive officers of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect on the date hereof. As
used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible to participate in and shall receive all
benefits under welfare benefit and retirement plans, practices, policies and programs provided by
the Company and its affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to all executive officers
of the Company and its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in the aggregate, than
the most favorable of those provided by the Company and its affiliated companies for the Executive
under than such plans, practices, policies and programs of the Company and its affiliated companies
in effect for the Executive on the date hereof.

          (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to (A) at
Executive’s option, a monthly car allowance or use of an automobile and (B) such other fringe
benefits (including, without limitation, payment of club dues, financial planning services,
cellular telephone, mobile email, annual physical examinations, payment of professional fees and
professional taxes and payment of related expenses, as appropriate) in accordance with the most
favorable plans, practices, programs and policies of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the foregoing, effective December 31,
2008, no amounts shall be payable under this Section 3(b)(v) to the extent that such amounts are
Section 409A Amounts.

          (vi) Expenses. During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the

- 7 -

 

foregoing, effective December 31, 2008, no amounts shall be payable under this Section
3(b)(vi) to the extent that such amounts are Section 409A Amounts.

          (vii) Vacation. During the Employment Period, the Executive shall be entitled to at least
four (4) weeks paid vacation or such greater amount of paid vacation as may be applicable to the
executive officers of the Company and its affiliated companies.

          (viii) Deferred Compensation Plan. During the Employment Period, the Executive shall be
entitled to continue to participate in any deferred compensation or similar plans in which
executive officers of the Company and its affiliated companies participate.

4. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with Section 10(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective thirty (30) days after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that within the thirty (30)-day period after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. In
addition, if a physician selected by the Executive determines that the Disability of the Executive
has occurred, the Executive (or his representative) may provide the Company with written notice in
accordance with Section 10(b) of this Agreement of the Executive’s intention to terminate his
employment. In such event, the Disability Effective Date shall be thirty (30) days after receipt
of such notice by the Company.

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

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

     (d) Notice of Termination. Any termination during the Employment Period by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the termination date
(which date, in the case of a notice by the Company, shall be not more than 30 days after the
giving of such notice). The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights hereunder.

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

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

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

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

5. Obligations of the Company Upon Termination.

     (a) Benefit Obligation and Accrued Obligation Defined. For purposes of this Agreement,
Benefit Obligation shall mean all benefits to which the Executive (or his designated beneficiary or
legal representative, as applicable) is entitled or vested (or becomes entitled or vested as a
result of termination) under the terms of all employee benefit and compensation plans, agreements
and arrangements (collectively, “Benefit Plans”) in which the Executive is a participant as of the
Date of Termination. Accrued Obligation means the sum of (1) the Executive’s Annual Base Salary
through the Date of Termination for periods through but not following his Separation From Service
and (2) any accrued vacation pay earned by the Executive, in each case, to the extent not
theretofore paid.

     (b) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period,
the Executive’s employment is terminated by reason of the Executive’s death or Disability, by the
Company for any reason other than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable) in a lump sum in cash within thirty (30) days after the Date of
Termination the Accrued Obligation; and

          (ii) The Company shall pay or cause the Executive to be paid the Benefit Obligation at the
times specified in and in accordance with the terms of the applicable Benefit Plans.

     (c) Cause. If the Executive’s employment is terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) the Accrued Obligation and (y) the Benefit Obligation in
accordance with the terms of the applicable Benefit Plans.

     (d) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period for any reason other than for Good Reason,
the Executive’s employment shall terminate without further obligations to the Executive, other than
for payment of the Accrued Obligation and the Benefit Obligation and the

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rights provided in Section 6. In such case, the Accrued Obligation shall be paid to the
Executive in a lump sum in cash within thirty (30) days after the Date of Termination and the
Benefit Obligation shall be paid in accordance with the terms of the applicable Benefit Plans.

6. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any contract
or agreement with the Company or any of its affiliated companies. Except as otherwise provided
herein, amounts which are vested benefits, which vest according to the terms of this Agreement or
which the Executive is otherwise entitled to receive under any of the Benefit Plans or any other
plan, policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement.

7. Full Settlement.

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

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

8. Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data relating to the Company or
any of its affiliated companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive’s employment by the Company or any of its affiliated companies,
provided that it shall not apply to information which is or shall become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation of this Agreement),
information that is developed by the Executive independently of such information, or knowledge or
data or information that is disclosed to the Executive by a third party under no obligation of
confidentiality to the Company. After termination of the Executive’s employment with the Company,
the Executive shall not, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an asserted violation
of the provision of this Section 8 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

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9. Successors.

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

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

10. Miscellaneous.

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

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

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Bernard J. Duroc-Danner
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Weatherford International Ltd.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

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

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

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

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

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

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

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Bernard J. Duroc-Danner	 	 
	 	 	 	 	 
	 	 	 	 	Bernard J. Duroc-Danner	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Burt M. Martin	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Burt M. Martin

Senior Vice President	 	 

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AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is entered into as of
December 31, 2008, by and between Weatherford International Ltd., a Bermuda exempted company (the
“Company”), and Stuart E. Ferguson (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Board has previously determined that it is in the best interests of the Company
and its shareholders to retain the Executive and to induce the employment of the Executive for the
long-term benefit of the Company;

     WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide
services to the Company and its affiliated companies, and the Executive is willing to accept such
employment and provide such services on the terms set forth in this Agreement;

     WHEREAS, the Company and the Executive previously entered into an employment agreement (the
“Employment Agreement”) dated and effective as of August 1, 2003 (“the Effective Date”);

     WHEREAS, the Company and the Executive desire to amend and restate the Employment Agreement as
set forth in this Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and the final Department of Treasury regulations issued thereunder; and

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree that effective as of December 31, 2008 the
Employment Agreement is hereby amended and restated to provide as follows:

1. Certain Definitions.

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

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

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’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 Executive pursuant to Section 4(c)), after a written demand for substantial
performance is delivered to the Executive by the Board which specifically

- 1 -

 

identifies the manner in which the Executive has not substantially performed the Executive’s
duties, or

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

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

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

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) 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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or

          (iii) the consummation of a reorganization, merger, amalgamation, consolidation, scheme of
arrangement, exchange offer or similar transaction of the Company or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the

- 2 -

 

Company’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the case may be, (A) all of the
individuals and entities (which, for purposes of this Agreement, shall include, without limitation,
any corporation, partnership, association, joint-stock company, limited liability company, trust,
unincorporated organization or other business entity) who were the beneficial owners, respectively,
of the Outstanding Company Common Shares and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction beneficially own, directly or indirectly, more than sixty-six
and two-thirds percent (66-2/3%) of, respectively, the then outstanding 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 (1) or more subsidiaries or entities) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common
Shares 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, twenty percent (20%) or more of, respectively, the then outstanding shares
of common stock of the entity resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such entity except to the extent that such
ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the
members of the board of directors (or other governing body) of the entity resulting from such
Corporate Transaction were members of the Incumbent Board at the time of the approval of such
Corporate Transaction; or

          (iv) Approval or adoption by the Board of Directors or the shareholders of the 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” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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

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

     (i) “Employment Period” shall mean the period commencing on the Effective Date and ending on
the third anniversary of the Effective Date; provided, however, that commencing on the date one
year after the Effective Date, and on each annual anniversary of such date (such

- 3 -

 

date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Employment Period shall be automatically extended so as
to terminate three (3) years after such Renewal Date, unless at least sixty (60) days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be
so extended.

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

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

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

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of this
Agreement, or any other action by the Company or any Subsidiary 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 Executive;

          (ii) any failure by the Company or any Subsidiary to comply with any of the provisions of this
Agreement (including, without limitation, its obligations under Section 3(a)) or any other
agreements between the Executive and the Company or any Subsidiary, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the
Company, or a Subsidiary, as appropriate, promptly after receipt of notice thereof given by the
Executive;

          (iii) any failure by the Company or any Subsidiary to continue to provide the Executive with
benefits currently or previously enjoyed by the Executive under any of the Company’s or any
Subsidiary’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 Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

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

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

          (vi) any failure by the Company to comply with and satisfy Section 9(b) of this Agreement;

- 4 -

 

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

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

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

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

     (m) “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, (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.

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

     (o) “Section 409A Amounts” means those amounts that are deferred compensation subject to
Section 409A.

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

2. Employment Period. The Company hereby agrees that the Company will continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the
terms and conditions of this Agreement during the Employment Period. During the Employment Period,
the Executive, with his/her prior express agreement, may be seconded to the employment of
Weatherford U.S., L.P. (or such other affiliated entity as

- 5 -

 

specifically agreed by the Executive) (the “Seconded Affiliate Company”), but without prejudice to
the Company’s obligations or the Executive’s rights under this Agreement. The Executive shall
carry out his/her duties as if they were duties to be performed on behalf of the Company. Each
Seconded Affiliate Company shall be subject to all of the obligations and agreements of the Company
under this Agreement and the Company shall be responsible for actions and inactions of the Seconded
Affiliate Company. Any breach or failure to abide by the terms and conditions of this Agreement by
a Seconded Affiliate Company shall be deemed to constitute a breach or failure to abide by the
Company. The Executive has the right, in his/her sole discretion, to revoke his/her agreement to
be seconded to the employment of any Seconded Affiliate Company at any time.

3. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles, reporting requirements, authority, duties and responsibilities) shall be Senior Vice
President — Reservoir & Production and Chief Technology Officer of the Company, (B) the
Executive’s services shall be performed at the Company’s offices in Aberdeen, Scotland or other
locations agreed by the Executive and (C) the Executive will report directly to the Company’s Chief
Executive Officer.

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities in clause (A), (B), and (C) together do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance
with this Agreement. It is expressly understood and agreed that to the extent that such activities
have been conducted by the Executive prior to the date hereof, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto) subsequent to the
date hereof shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual base
salary equal to the current base salary being received by the Executive (“Annual Base Salary”),
which shall be paid at a monthly rate. During the Employment Period, the Annual Base Salary shall
be reviewed no more than twelve (12) months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually; provided, however, that a salary
increase shall not necessarily be awarded as a result of such review. Any increase in Annual Base
Salary may not serve to limit or reduce any other obligation to the

- 6 -

 

Executive under this Agreement. Annual Base Salary shall not be reduced after any such
increase. The term Annual Base Salary as utilized in this Agreement shall refer to Annual Base
Salary as so increased.

          (ii) Annual Bonus. The Executive shall be eligible for an annual bonus for each fiscal year
ending during the Employment Period on the same basis as other executive officers under the
Company’s executive officer annual incentive program. Each such Annual Bonus shall be paid no
later than 2-1/2 months after the fiscal year for which the Annual Bonus is awarded.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to all executive officers of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect on the date hereof. As
used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible to participate in and shall receive all
benefits under welfare benefit and retirement plans, practices, policies and programs provided by
the Company and its affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to all executive officers
of the Company and its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in the aggregate, than
the most favorable of those provided by the Company and its affiliated companies for the Executive
under than such plans, practices, policies and programs of the Company and its affiliated companies
in effect for the Executive on the date hereof.

          (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to (A) at
Executive’s option, a monthly car allowance or use of an automobile and (B) such other fringe
benefits (including, without limitation, payment of club dues, financial planning services,
cellular telephone, mobile email, annual physical examinations, payment of professional fees and
professional taxes and payment of related expenses, as appropriate) in accordance with the most
favorable plans, practices, programs and policies of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the foregoing, effective December 31,
2008, no amounts shall be payable under this Section 3(b)(v) to the extent that such amounts are
Section 409A Amounts.

          (vi) Expenses. During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Company and its

- 7 -

 

affiliated companies in effect for the Executive on the date hereof. Notwithstanding the
foregoing, effective December 31, 2008, no amounts shall be payable under this Section 3(b)(vi) to
the extent that such amounts are Section 409A Amounts.

          (vii) Vacation. During the Employment Period, the Executive shall be entitled to at least
four (4) weeks paid vacation or such greater amount of paid vacation as may be applicable to the
executive officers of the Company and its affiliated companies.

          (viii) Deferred Compensation Plan. During the Employment Period, the Executive shall be
entitled to continue to participate in any deferred compensation or similar plans in which
executive officers of the Company and its affiliated companies participate.

4. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with Section 10(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective thirty (30) days after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that within the thirty (30)-day period after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. In
addition, if a physician selected by the Executive determines that the Disability of the Executive
has occurred, the Executive (or his representative) may provide the Company with written notice in
accordance with Section 10(b) of this Agreement of the Executive’s intention to terminate his
employment. In such event, the Disability Effective Date shall be thirty (30) days after receipt
of such notice by the Company.

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

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

     (d) Notice of Termination. Any termination during the Employment Period by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the termination date
(which date, in the case of a notice by the Company, shall be not more than 30 days after the
giving of such notice). The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively,

- 8 -

 

from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights
hereunder.

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

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

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

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

5. Obligations of the Company Upon Termination.

     (a) Benefit Obligation and Accrued Obligation Defined. For purposes of this Agreement,
Benefit Obligation shall mean all benefits to which the Executive (or his designated beneficiary or
legal representative, as applicable) is entitled or vested (or becomes entitled or vested as a
result of termination) under the terms of all employee benefit and compensation plans, agreements
and arrangements (collectively, “Benefit Plans”) in which the Executive is a participant as of the
Date of Termination. Accrued Obligation means the sum of (1) the Executive’s Annual Base Salary
through the Date of Termination for periods through but not following his Separation From Service
and (2) any accrued vacation pay earned by the Executive, in each case, to the extent not
theretofore paid.

     (b) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period,
the Executive’s employment is terminated by reason of the Executive’s death or Disability, by the
Company for any reason other than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable) in a lump sum in cash within thirty (30) days after the Date of
Termination the Accrued Obligation; and

          (ii) The Company shall pay or cause the Executive to be paid the Benefit Obligation at the
times specified in and in accordance with the terms of the applicable Benefit Plans.

     (c) Cause. If the Executive’s employment is terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) the Accrued Obligation and (y) the Benefit Obligation in
accordance with the terms of the applicable Benefit Plans.

- 9 -

 

     (d) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period for any reason other than for Good Reason,
the Executive’s employment shall terminate without further obligations to the Executive, other than
for payment of the Accrued Obligation and the Benefit Obligation and the rights provided in Section
6. In such case, the Accrued Obligation shall be paid to the Executive in a lump sum in cash
within thirty (30) days after the Date of Termination and the Benefit Obligation shall be paid in
accordance with the terms of the applicable Benefit Plans.

6. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any contract
or agreement with the Company or any of its affiliated companies. Except as otherwise provided
herein, amounts which are vested benefits, which vest according to the terms of this Agreement or
which the Executive is otherwise entitled to receive under any of the Benefit Plans or any other
plan, policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement.

7. Full Settlement.

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

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

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

- 10 -

 

or divulge any such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provision of this Section 8
constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

9. Successors.

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

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

10. Miscellaneous.

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

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

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Stuart E. Ferguson
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027

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	 	If to the Company:
	 	Weatherford International Ltd.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

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

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

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

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

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

- 12 -

 

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

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Stuart E. Ferguson	 	 
	 	 	 	 	 
	 	 	 	 	Stuart E. Ferguson	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Bernard J. Duroc-Danner

Chairman, President & Chief Executive Officer	 	 

- 13 -

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is entered into as of
December 31, 2008, by and between Weatherford International Ltd., a Bermuda exempted company (the
“Company”), and Burt M. Martin (the “Executive”).

W I T N E S S E T H:

     WHEREAS, the Board has previously determined that it is in the best interests of the Company
and its shareholders to retain the Executive and to induce the employment of the Executive for the
long-term benefit of the Company;

     WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide
services to the Company and its affiliated companies, and the Executive is willing to accept such
employment and provide such services on the terms set forth in this Agreement;

     WHEREAS, the Company and the Executive previously entered into an employment agreement (the
“Employment Agreement”) dated and effective as of August 1, 2003 (“the Effective Date”);

     WHEREAS, the Company and the Executive desire to amend and restate the Employment Agreement as
set forth in this Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and the final Department of Treasury regulations issued thereunder; and

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree that effective as of December 31, 2008 the
Employment Agreement is hereby amended and restated to provide as follows:

1. Certain Definitions.

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

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

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’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 Executive pursuant to Section 4(c)), after a written demand for substantial
performance is delivered to the Executive by the Board which specifically

- 1 -

 

identifies the manner in which the Executive has not substantially performed the Executive’s
duties, or

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

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

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

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) 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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or

          (iii) the consummation of a reorganization, merger, amalgamation, consolidation, scheme of
arrangement, exchange offer or similar transaction of the Company or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the

- 2 -

 

Company’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the case may be, (A) all of the
individuals and entities (which, for purposes of this Agreement, shall include, without limitation,
any corporation, partnership, association, joint-stock company, limited liability company, trust,
unincorporated organization or other business entity) who were the beneficial owners, respectively,
of the Outstanding Company Common Shares and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction beneficially own, directly or indirectly, more than sixty-six
and two-thirds percent (66-2/3%) of, respectively, the then outstanding 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 (1) or more subsidiaries or entities) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common
Shares 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, twenty percent (20%) or more of, respectively, the then outstanding shares
of common stock of the entity resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such entity except to the extent that such
ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the
members of the board of directors (or other governing body) of the entity resulting from such
Corporate Transaction were members of the Incumbent Board at the time of the approval of such
Corporate Transaction; or

          (iv) Approval or adoption by the Board of Directors or the shareholders of the 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” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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

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

     (i) “Employment Period” shall mean the period commencing on the Effective Date and ending on
the third anniversary of the Effective Date; provided, however, that commencing on the date one
year after the Effective Date, and on each annual anniversary of such date (such

- 3 -

 

date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Employment Period shall be automatically extended so as
to terminate three (3) years after such Renewal Date, unless at least sixty (60) days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be
so extended.

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

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

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

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of this
Agreement, or any other action by the Company or any Subsidiary 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 Executive;

          (ii) any failure by the Company or any Subsidiary to comply with any of the provisions of this
Agreement (including, without limitation, its obligations under Section 3(a)) or any other
agreements between the Executive and the Company or any Subsidiary, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the
Company, or a Subsidiary, as appropriate, promptly after receipt of notice thereof given by the
Executive;

          (iii) any failure by the Company or any Subsidiary to continue to provide the Executive with
benefits currently or previously enjoyed by the Executive under any of the Company’s or any
Subsidiary’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 Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

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

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

          (vi) any failure by the Company to comply with and satisfy Section 9(b) of this Agreement;

- 4 -

 

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

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

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

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

     (m) “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, (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.

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

     (o) “Section 409A Amounts” means those amounts that are deferred compensation subject to
Section 409A.

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

2. Employment Period. The Company hereby agrees that the Company will continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the
terms and conditions of this Agreement during the Employment Period. During the Employment Period,
the Executive, with his/her prior express agreement, may be seconded to the employment of
Weatherford U.S., L.P. (or such other affiliated entity as

- 5 -

 

specifically agreed by the Executive) (the “Seconded Affiliate Company”), but without prejudice to
the Company’s obligations or the Executive’s rights under this Agreement. The Executive shall
carry out his/her duties as if they were duties to be performed on behalf of the Company. Each
Seconded Affiliate Company shall be subject to all of the obligations and agreements of the Company
under this Agreement and the Company shall be responsible for actions and inactions of the Seconded
Affiliate Company. Any breach or failure to abide by the terms and conditions of this Agreement by
a Seconded Affiliate Company shall be deemed to constitute a breach or failure to abide by the
Company. The Executive has the right, in his/her sole discretion, to revoke his/her agreement to
be seconded to the employment of any Seconded Affiliate Company at any time.

3. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles, reporting requirements, authority, duties and responsibilities) shall be Senior Vice
President, General Counsel and Secretary of the Company, (B) the Executive’s services shall be
performed at the Company’s executive office in Houston, Texas or other locations less than
thirty-five (35) miles from such location and (C) the Executive will report directly to the
Company’s Chief Executive Officer.

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities in clause (A), (B), and (C) together do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance
with this Agreement. It is expressly understood and agreed that to the extent that such activities
have been conducted by the Executive prior to the date hereof, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto) subsequent to the
date hereof shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual base
salary equal to the current base salary being received by the Executive (“Annual Base Salary”),
which shall be paid at a monthly rate. During the Employment Period, the Annual Base Salary shall
be reviewed no more than twelve (12) months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually; provided, however, that a salary
increase shall not necessarily be awarded as a result of such review. Any increase in Annual Base
Salary may not serve to limit or reduce any other obligation to the

- 6 -

 

Executive under this Agreement. Annual Base Salary shall not be reduced after any such
increase. The term Annual Base Salary as utilized in this Agreement shall refer to Annual Base
Salary as so increased.

          (ii) Annual Bonus. The Executive shall be eligible for an annual bonus for each fiscal year
ending during the Employment Period on the same basis as other executive officers under the
Company’s executive officer annual incentive program. Each such Annual Bonus shall be paid no
later than 2-1/2 months after the fiscal year for which the Annual Bonus is awarded.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to all executive officers of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect on the date hereof. As
used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible to participate in and shall receive all
benefits under welfare benefit and retirement plans, practices, policies and programs provided by
the Company and its affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to all executive officers
of the Company and its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in the aggregate, than
the most favorable of those provided by the Company and its affiliated companies for the Executive
under than such plans, practices, policies and programs of the Company and its affiliated companies
in effect for the Executive on the date hereof.

          (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to (A) at
Executive’s option, a monthly car allowance or use of an automobile and (B) such other fringe
benefits (including, without limitation, payment of club dues, financial planning services,
cellular telephone, mobile email, annual physical examinations, payment of professional fees and
professional taxes and payment of related expenses, as appropriate) in accordance with the most
favorable plans, practices, programs and policies of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the foregoing, effective December 31,
2008, no amounts shall be payable under this Section 3(b)(v) to the extent that such amounts are
Section 409A Amounts.

          (vi) Expenses. During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Company and its

- 7 -

 

affiliated companies in effect for the Executive on the date hereof. Notwithstanding the
foregoing, effective December 31, 2008, no amounts shall be payable under this Section 3(b)(vi) to
the extent that such amounts are Section 409A Amounts.

          (vii) Vacation. During the Employment Period, the Executive shall be entitled to at least
four (4) weeks paid vacation or such greater amount of paid vacation as may be applicable to the
executive officers of the Company and its affiliated companies.

          (viii) Deferred Compensation Plan. During the Employment Period, the Executive shall be
entitled to continue to participate in any deferred compensation or similar plans in which
executive officers of the Company and its affiliated companies participate.

4. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with Section 10(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective thirty (30) days after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that within the thirty (30)-day period after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. In
addition, if a physician selected by the Executive determines that the Disability of the Executive
has occurred, the Executive (or his representative) may provide the Company with written notice in
accordance with Section 10(b) of this Agreement of the Executive’s intention to terminate his
employment. In such event, the Disability Effective Date shall be thirty (30) days after receipt
of such notice by the Company.

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

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

     (d) Notice of Termination. Any termination during the Employment Period by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the termination date
(which date, in the case of a notice by the Company, shall be not more than 30 days after the
giving of such notice). The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively,

- 8 -

 

from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights
hereunder.

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

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

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

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

5. Obligations of the Company Upon Termination.

     (a) Benefit Obligation and Accrued Obligation Defined. For purposes of this Agreement,
Benefit Obligation shall mean all benefits to which the Executive (or his designated beneficiary or
legal representative, as applicable) is entitled or vested (or becomes entitled or vested as a
result of termination) under the terms of all employee benefit and compensation plans, agreements
and arrangements (collectively, “Benefit Plans”) in which the Executive is a participant as of the
Date of Termination. Accrued Obligation means the sum of (1) the Executive’s Annual Base Salary
through the Date of Termination for periods through but not following his Separation From Service
and (2) any accrued vacation pay earned by the Executive, in each case, to the extent not
theretofore paid.

     (b) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period,
the Executive’s employment is terminated by reason of the Executive’s death or Disability, by the
Company for any reason other than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable) in a lump sum in cash within thirty (30) days after the Date of
Termination the Accrued Obligation; and

          (ii) The Company shall pay or cause the Executive to be paid the Benefit Obligation at the
times specified in and in accordance with the terms of the applicable Benefit Plans.

     (c) Cause. If the Executive’s employment is terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) the Accrued Obligation and (y) the Benefit Obligation in
accordance with the terms of the applicable Benefit Plans.

- 9 -

 

     (d) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period for any reason other than for Good Reason,
the Executive’s employment shall terminate without further obligations to the Executive, other than
for payment of the Accrued Obligation and the Benefit Obligation and the rights provided in Section
6. In such case, the Accrued Obligation shall be paid to the Executive in a lump sum in cash
within thirty (30) days after the Date of Termination and the Benefit Obligation shall be paid in
accordance with the terms of the applicable Benefit Plans.

6. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any contract
or agreement with the Company or any of its affiliated companies. Except as otherwise provided
herein, amounts which are vested benefits, which vest according to the terms of this Agreement or
which the Executive is otherwise entitled to receive under any of the Benefit Plans or any other
plan, policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement.

7. Full Settlement.

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

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

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

- 10 -

 

or divulge any such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provision of this Section 8
constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

9. Successors.

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

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

10. Miscellaneous.

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

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

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Burt M. Martin
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027

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	 	If to the Company:
	 	Weatherford International Ltd.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

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

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

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

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

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

- 12 -

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Burt M. Martin
	 	 
	 	 	 	 	 
	 

	 	 	 	Burt M. Martin	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner
 

Bernard J. Duroc-Danner
	 	 
	 

	 	 	 	Chairman, President & Chief Executive Officer	 	 

- 13 -

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is entered into as of
December 31, 2008, by and between Weatherford International Ltd., a Bermuda exempted company (the
“Company”), and Keith R. Morley (the “Executive”).

W I T N
E S S E T H:

     WHEREAS, the Board has previously determined that it is in the best interests of the Company
and its shareholders to retain the Executive and to induce the employment of the Executive for the
long-term benefit of the Company;

     WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide
services to the Company and its affiliated companies, and the Executive is willing to accept such
employment and provide such services on the terms set forth in this Agreement;

     WHEREAS, the Company and the Executive previously entered into an employment agreement (the
“Employment Agreement”) dated and effective as of June 11, 2007 (“the Effective Date”);

     WHEREAS, the Company and the Executive desire to amend and restate the Employment Agreement as
set forth in this Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and the final Department of Treasury regulations issued thereunder; and

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the parties hereto do hereby agree that effective as of December 31, 2008 the
Employment Agreement is hereby amended and restated to provide as follows:

1. Certain Definitions.

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

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

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Cause” shall mean:

          (i) the willful and continued failure of the Executive to substantially perform the
Executive’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 Executive pursuant to Section 4(c)), after a written demand for substantial
performance is delivered to the Executive by the Board which specifically

- 1 -

 

identifies the manner in which the Executive has not substantially performed the Executive’s
duties, or

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

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

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

          (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent
(20%) or more of either (A) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) 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 (2/3) of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or any other actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board; or

          (iii) the consummation of a reorganization, merger, amalgamation, consolidation, scheme of
arrangement, exchange offer or similar transaction of the Company or any of its subsidiaries or the
sale, transfer or other disposition of all or substantially all of the

- 2 -

 

Company’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate
Transaction or series of related Corporate Transactions, as the case may be, (A) all of the
individuals and entities (which, for purposes of this Agreement, shall include, without limitation,
any corporation, partnership, association, joint-stock company, limited liability company, trust,
unincorporated organization or other business entity) who were the beneficial owners, respectively,
of the Outstanding Company Common Shares and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction beneficially own, directly or indirectly, more than sixty-six
and two-thirds percent (66-2/3%) of, respectively, the then outstanding 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 (1) or more subsidiaries or entities) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common
Shares 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, twenty percent (20%) or more of, respectively, the then outstanding shares
of common stock of the entity resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such entity except to the extent that such
ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the
members of the board of directors (or other governing body) of the entity resulting from such
Corporate Transaction were members of the Incumbent Board at the time of the approval of such
Corporate Transaction; or

          (iv) Approval or adoption by the Board of Directors or the shareholders of the 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” shall mean Weatherford International Ltd. or any successor to Weatherford
International Ltd., including but not limited to any Entity into which Weatherford International
Ltd. is merged, consolidated or amalgamated, or any Entity otherwise resulting from a Corporate
Transaction.

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

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

     (i) “Employment Period” shall mean the period commencing on the Effective Date and ending on
the third anniversary of the Effective Date; provided, however, that commencing on the date one
year after the Effective Date, and on each annual anniversary of such date (such

- 3 -

 

date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal
Date”), unless previously terminated, the Employment Period shall be automatically extended so as
to terminate three (3) years after such Renewal Date, unless at least sixty (60) days prior to the
Renewal Date the Company shall give notice to the Executive that the Employment Period shall not be
so extended.

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

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

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

          (i) the assignment to the Executive of any position, authority, duties or responsibilities
inconsistent with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3(a) of this
Agreement, or any other action by the Company or any Subsidiary 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 Executive;

          (ii) any failure by the Company or any Subsidiary to comply with any of the provisions of this
Agreement (including, without limitation, its obligations under Section 3(a)) or any other
agreements between the Executive and the Company or any Subsidiary, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the
Company, or a Subsidiary, as appropriate, promptly after receipt of notice thereof given by the
Executive;

          (iii) any failure by the Company or any Subsidiary to continue to provide the Executive with
benefits currently or previously enjoyed by the Executive under any of the Company’s or any
Subsidiary’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 Executive of any fringe benefits
or perquisites currently enjoyed by the Executive;

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

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

          (vi) any failure by the Company to comply with and satisfy Section 9(b) of this Agreement;

- 4 -

 

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

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

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

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

     (m) “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, (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.

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

     (o) “Section 409A Amounts” means those amounts that are deferred compensation subject to
Section 409A.

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

2. Employment Period. The Company hereby agrees that the Company will continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the Company subject to the
terms and conditions of this Agreement during the Employment Period. During the Employment Period,
the Executive, with his/her prior express agreement, may be seconded to the employment of
Weatherford U.S., L.P. (or such other affiliated entity as

- 5 -

 

specifically agreed by the Executive) (the “Seconded Affiliate Company”), but without prejudice to
the Company’s obligations or the Executive’s rights under this Agreement. The Executive shall
carry out his/her duties as if they were duties to be performed on behalf of the Company. Each
Seconded Affiliate Company shall be subject to all of the obligations and agreements of the Company
under this Agreement and the Company shall be responsible for actions and inactions of the Seconded
Affiliate Company. Any breach or failure to abide by the terms and conditions of this Agreement by
a Seconded Affiliate Company shall be deemed to constitute a breach or failure to abide by the
Company. The Executive has the right, in his/her sole discretion, to revoke his/her agreement to
be seconded to the employment of any Seconded Affiliate Company at any time.

3. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles, reporting requirements, authority, duties and responsibilities) shall be Senior Vice
President – Well Construction & Operations Support of the Company, (B) the Executive’s services
shall be performed at the Company’s executive office in Dubai, Houston, Texas or other locations
agreed by Executive and (C) the Executive will report directly to the Company’s Chief Executive
Officer.

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities in clause (A), (B), and (C) together do not significantly interfere with
the performance of the Executive’s responsibilities as an employee of the Company in accordance
with this Agreement. It is expressly understood and agreed that to the extent that such activities
have been conducted by the Executive prior to the date hereof, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto) subsequent to the
date hereof shall not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual base
salary equal to the current base salary being received by the Executive (“Annual Base Salary”),
which shall be paid at a monthly rate. During the Employment Period, the Annual Base Salary shall
be reviewed no more than twelve (12) months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually; provided, however, that a salary
increase shall not necessarily be awarded as a result of such review. Any increase in Annual Base
Salary may not serve to limit or reduce any other obligation to the

- 6 -

 

Executive under this Agreement. Annual Base Salary shall not be reduced after any such
increase. The term Annual Base Salary as utilized in this Agreement shall refer to Annual Base
Salary as so increased.

          (ii) Annual Bonus. The Executive shall be eligible for an annual bonus for each fiscal year
ending during the Employment Period on the same basis as other executive officers under the
Company’s executive officer annual incentive program. Each such Annual Bonus shall be paid no
later than 2-1/2 months after the fiscal year for which the Annual Bonus is awarded.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
shall be entitled to participate in all incentive, savings and retirement plans, practices,
policies and programs applicable generally to all executive officers of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect on the date hereof. As
used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company.

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible to participate in and shall receive all
benefits under welfare benefit and retirement plans, practices, policies and programs provided by
the Company and its affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to all executive officers
of the Company and its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with benefits which are less favorable, in the aggregate, than
the most favorable of those provided by the Company and its affiliated companies for the Executive
under than such plans, practices, policies and programs of the Company and its affiliated companies
in effect for the Executive on the date hereof.

          (v) Fringe Benefits. During the Employment Period, the Executive shall be entitled to (A) at
Executive’s option, a monthly car allowance or use of an automobile and (B) such other fringe
benefits (including, without limitation, payment of club dues, financial planning services,
cellular telephone, mobile email, annual physical examinations, payment of professional fees and
professional taxes and payment of related expenses, as appropriate) in accordance with the most
favorable plans, practices, programs and policies of the Company and its affiliated companies in
effect for the Executive on the date hereof. Notwithstanding the foregoing, effective December 31,
2008, no amounts shall be payable under this Section 3(b)(v) to the extent that such amounts are
Section 409A Amounts.

          (vi) Expenses. During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Company and its

- 7 -

 

affiliated companies in effect for the Executive on the date hereof. Notwithstanding the
foregoing, effective December 31, 2008, no amounts shall be payable under this Section 3(b)(vi) to
the extent that such amounts are Section 409A Amounts.

          (vii) Vacation. During the Employment Period, the Executive shall be entitled to at least
four (4) weeks paid vacation or such greater amount of paid vacation as may be applicable to the
executive officers of the Company and its affiliated companies.

          (viii) Deferred Compensation Plan. During the Employment Period, the Executive shall be
entitled to continue to participate in any deferred compensation or similar plans in which
executive officers of the Company and its affiliated companies participate.

4. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period, it may provide the Executive
with written notice in accordance with Section 10(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective thirty (30) days after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that within the thirty (30)-day period after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. In
addition, if a physician selected by the Executive determines that the Disability of the Executive
has occurred, the Executive (or his representative) may provide the Company with written notice in
accordance with Section 10(b) of this Agreement of the Executive’s intention to terminate his
employment. In such event, the Disability Effective Date shall be thirty (30) days after receipt
of such notice by the Company.

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

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

     (d) Notice of Termination. Any termination during the Employment Period by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the termination date
(which date, in the case of a notice by the Company, shall be not more than 30 days after the
giving of such notice). The failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Executive or the Company, respectively,

- 8 -

 

from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights
hereunder.

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

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

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

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

5. Obligations of the Company Upon Termination.

     (a) Benefit Obligation and Accrued Obligation Defined. For purposes of this Agreement,
Benefit Obligation shall mean all benefits to which the Executive (or his designated beneficiary or
legal representative, as applicable) is entitled or vested (or becomes entitled or vested as a
result of termination) under the terms of all employee benefit and compensation plans, agreements
and arrangements (collectively, “Benefit Plans”) in which the Executive is a participant as of the
Date of Termination. Accrued Obligation means the sum of (1) the Executive’s Annual Base Salary
through the Date of Termination for periods through but not following his Separation From Service
and (2) any accrued vacation pay earned by the Executive, in each case, to the extent not
theretofore paid.

     (b) Death, Disability, Good Reason or Other than For Cause. If, during the Employment Period,
the Executive’s employment is terminated by reason of the Executive’s death or Disability, by the
Company for any reason other than for Cause or by the Executive for Good Reason:

          (i) The Company shall pay to the Executive (or Executive’s heirs, beneficiaries or
representatives as applicable) in a lump sum in cash within thirty (30) days after the Date of
Termination the Accrued Obligation; and

          (ii) The Company shall pay or cause the Executive to be paid the Benefit Obligation at the
times specified in and in accordance with the terms of the applicable Benefit Plans.

     (c) Cause. If the Executive’s employment is terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) the Accrued Obligation and (y) the Benefit Obligation in
accordance with the terms of the applicable Benefit Plans.

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     (d) Termination by Executive Other Than for Good Reason. If the Executive voluntarily
terminates his employment during the Employment Period for any reason other than for Good Reason,
the Executive’s employment shall terminate without further obligations to the Executive, other than
for payment of the Accrued Obligation and the Benefit Obligation and the rights provided in Section
6. In such case, the Accrued Obligation shall be paid to the Executive in a lump sum in cash
within thirty (30) days after the Date of Termination and the Benefit Obligation shall be paid in
accordance with the terms of the applicable Benefit Plans.

6. Other Rights.

     (a) Except as provided herein, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor shall
anything herein limit or otherwise affect such rights as the Executive may have under any contract
or agreement with the Company or any of its affiliated companies. Except as otherwise provided
herein, amounts which are vested benefits, which vest according to the terms of this Agreement or
which the Executive is otherwise entitled to receive under any of the Benefit Plans or any other
plan, policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement.

7. Full Settlement.

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

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

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

- 10 -

 

or divulge any such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provision of this Section 8
constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

9. Successors.

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

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

10. Miscellaneous.

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

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

	 	 	 	 	 
	 

	 	If to the Executive:
	 	Keith R. Morley
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027

- 11 -

 

	 	 	 	 	 
	 

	 	If to the Company:
	 	Weatherford International Ltd.
	 

	 	 	 	515 Post Oak Boulevard
	 

	 	 	 	Houston, Texas 77027
	 

	 	 	 	Attention: General Counsel

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

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

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

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

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

- 12 -

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Keith R. Morley
	 	 
	 	 	 	 	 
	 

	 	 	 	Keith R. Morley	 	 
	 
	 	 	 	 	 	 
	 	 	WEATHERFORD INTERNATIONAL LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard J. Duroc-Danner
 

Bernard J. Duroc-Danner
	 	 
	 

	 	 	 	Chairman, President & Chief Executive Officer
	 	 

- 13 -

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