Document:

exv10w8

Exhibit 10.8

GENERAL MILLS, INC.

EXECUTIVE INCENTIVE PLAN

	1.	 	PURPOSE OF THE PLAN
	 
	 	 	The purpose of the General Mills, Inc., Executive Incentive Plan (the “Plan”) is to provide
financial rewards to key executives of General Mills, Inc. (“General Mills”), its
subsidiaries and affiliates (defined as entities in which General Mills, Inc., has a
significant equity or other interest) (collectively with General Mills, the “Company”) in
recognition of their contributions to the success of the Company, and to align the interests
of such executives with the interests of the stockholders of the Company. Awards under this
Plan are intended to constitute “qualified performance-based compensation” for purposes of
Internal Revenue Code section 162(m), and the Plan shall be construed consistently therewith.
	 
	2.	 	EFFECTIVE DATE AND DURATION OF PLAN
	 
	 	 	This Plan, as amended and restated herein, shall become effective as of September 25, 2000,
subject to the approval of the stockholders of General Mills at the Annual Meeting of
Stockholders on that date. This Plan is a successor to and replaces the Executive Incentive
Plan, amended and approved by stockholders on September 30, 1996. Definitions used in the
Plan can be found in Section 16. Awards may be made under the Plan until September 25, 2010.
	 
	3.	 	ELIGIBLE PERSONS
	 
	 	 	All officers of the Company shall be “Participants” eligible to receive Awards under the
Plan.
	 
	4.	 	AWARD TYPE
	 
	 	 	Under this Plan, the Committee may award Participants Cash Bonuses and the right to receive
shares of Common Stock subject to certain restrictions (“Restricted Stock” or “Restricted
Stock Units”). Cash bonuses, Restricted Stock and Restricted Stock Units are sometimes
referred to as “Awards”. To the extent that such requirements are applicable, this Plan is
intended to comply with the requirements of section 409A of the Internal Revenue Code first
effective as of January 1, 2005 and shall be interpreted and administered in accordance with
that intent. If any provision of the Plan would otherwise conflict with or frustrate this
intent, that provision will be interpreted and deemed amended so as to avoid the conflict.
Further, for purposes of the limitations on nonqualified deferred compensation under section
409A, each payment of compensation under this Plan shall be treated as a separate payment of
compensation for purposes of applying the section 409A deferral election rules and the
exclusion from section 409A for certain short-term deferral amounts. Certain awards made
under this Plan which were earned and vested (within the meaning of section 409A) before
January 1, 2005 are intended to be grandfathered from section 409A and remain governed by
federal tax law applicable to deferred compensation as it existed in effect prior to section
409A. Accordingly, changes to the Plan after October 3, 2004 shall not modify the rights of
participants with respect to deferred amounts that were earned and vested on or before
December 31, 2004.
	 
	5.	 	AWARDS OF CASH BONUSES, RESTRICTED STOCK AND RESTRICTED STOCK UNITS

	 	(a)	 	Performance Goal. In order for any Participant to receive an Award for
a Performance Period, the Net Earnings of the Company must be greater than zero.
	 
	 	(b)	 	Grants. At the end of the Performance Period, if the Committee
certifies that the requirement of Section 5(a) has been met, each Participant shall be
deemed to have earned Awards equal in value to the Maximum Amount, or such lesser
amount as the Committee shall determine in its discretion to be appropriate; provided,
however, that the exercise of such discretion with respect to any Participant shall not
have the effect of increasing an Award payable to any other Participant. Such Awards
shall consist of Cash Bonuses, Restricted Stock or Restricted Stock Units, or a
combination thereof, as determined by the Committee, subject to the limitation that
Restricted Stock and Restricted Stock Units may not constitute more than 50 percent of
each Participant’s Award. The Committee, in its discretion, may require, as a
condition to the grant of Restricted Stock or Restricted Stock Units, the purchase and
deposit of Common Stock owned by the Participant receiving such grant and the
forfeiture of such grant if such deposit is not made or maintained during a required
holding period. Such shares of deposited Common Stock may not be otherwise sold or
disposed of during the applicable holding period. For purpose of computing the value
of Awards, each Restricted Stock or Restricted Stock Unit shall be deemed to have a
value equivalent to the Fair Market Value of one share of Common Stock on the Grant
Date.

 

 

	 	(c)	 	Maximum Amount. Notwithstanding any other provision of this Plan, in
no event shall the total Awards value earned by any Participant for any one Performance
Period exceed 0.5 percent of the Company’s Net Earnings for that Performance Period
(“Maximum Amount”).
	 
	 	(d)	 	Profit Sharing Resolution. All awards under this Plan shall be subject
to General Mills’ 1933 Shareholder Resolution on Profit Sharing, as amended.
	 
	 	(e)	 	Special Rule for Calendar Year Performance. Notwithstanding any other
provision in the Plan to the contrary, cash incentive awards where the amount is
determined based on calendar year performance shall be paid in a lump sum on the March 15
immediately following the end of such calendar year. Cash incentive awards where the
amount is determined based on the Company’s fiscal year performance (June 1 through May
31) shall be paid in a lump sum on the August 15 immediately following the end of such
fiscal year. If applicable under the Plan, awards of restricted stock or restricted
stock units are payable at the times set forth in the Plan document and/or award
agreement. The intent of these provisions is to ensure that all such payments are
actually made within the short term deferral period described in Treasury Regulations
§1.409A-1(b)(4) and that such amounts are not treated as a “deferral of compensation”
under Code §409A.

	6.	 	RESTRICTED STOCK AND RESTRICTED STOCK UNITS

	 	(a)	 	Vesting. Subject to the provisions of Sections 10 and 11, the Vesting
Date for Restricted Stock and Restricted Stock Units shall be a date set forth in the
applicable Grant Agreement but which may not be earlier than 180 days after the
applicable Grant Date. The period between the applicable Grant Date and the Vesting
Date is referred to as the “Restricted Period”.
	 
	 	(b)	 	Common Stock Issuance. Within 60 days after the Vesting Date for a
Grant, General Mills shall issue to the Participant a number of shares of Common Stock
equal to the number of shares of Restricted Stock or Restricted Stock Units that vested
on such Vesting Date, except to the extent the Participant has elected to defer receipt
of the Common Stock pursuant to the General Mills, Inc. Deferred Compensation Plan.
	 
	 	(c)	 	Dividends and Cash Dividend Equivalents. Subject to the restrictions
set forth in Section 5(b), each Participant who receives Restricted Stock shall have
all rights as a Stockholder with respect to such shares, including the right to vote
the shares and receive dividends and other distributions. A Participant who is
credited with Restricted Stock Units shall have no rights as a stockholder with respect
to such Restricted Stock Units until such time as share certificates for Common Stock
are issued to the Participant. During the Restricted Period, however, the Company
shall pay to the Participant, on a quarterly basis, an amount (the “Cash Dividend
Equivalent”) equal to the sum of all cash dividends declared by General Mills with
record dates during the prior quarter with respect to that number of shares of Common
Stock equivalent to the number of Restricted Stock Units credited to the Participant’s
Restricted Stock Units Account as of the applicable record date.
	 
	 	(d)	 	Grant Agreement. Each Grant shall be confirmed by, and be subject to,
the terms of an applicable Grant Agreement.

	7.	 	COMMON STOCK

	 	(a)	 	Adjustments for Corporate Transactions. If a corporate transaction has
occurred affecting the Common Stock such that an adjustment to outstanding awards is
required to preserve (or prevent enlargement of) the benefits or potential benefits
intended at the time of grant, then in such manner as the Committee deems equitable, an
appropriate adjustment shall be made to (i) the number and kind of shares which may be
awarded under the Plan; (ii) the number and kind of shares subject to outstanding
awards; (iii) the number of shares credited to an account; and, if applicable, (iv) the
exercise price of outstanding Options; provided that the number of shares of Common
Stock subject to any Option denominated in Common Stock shall always be a whole number.
For this purpose a corporate transaction includes, but is not limited to, any dividend
or other distribution (whether in the form of cash, Common Stock, securities of a
subsidiary of the Company, other securities or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Common Stock or other securities of the Company,
issuance of warrants or other rights to purchase Common Stock or other securities of
the Company, or other similar corporate transactions.
	 
	 	(b)	 	Limits on Distribution. Notwithstanding any other provision of the
Plan, the Company shall have no obligation to deliver any shares of Common Stock under
the Plan unless all of the following conditions have been fulfilled:

	 	(i)	 	Listing or approval for listing upon notice of issuance, of such shares
on the New York Stock Exchange; or such other securities exchange as may at the
time be the principal market for the Common Stock, if applicable;

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	 	(ii)	 	Any registration or other qualification of such shares of General Mills
under any state or federal law or regulation, or the maintaining in effect of any
such registration or other qualification that the Committee shall, in its absolute
discretion upon the advice of counsel, deem necessary or advisable; and
	 
	 	(iii)	 	Obtaining any other consent, approval or permit from any state, federal
or foreign governmental agency which the Committee shall, in its absolute
discretion after receiving the advice of counsel, determine to be necessary or
advisable.

	 	(c)	 	Noncertificated Issuance of Shares. To the extent that the Plan
provides for issuance of stock certificates to reflect the issuance of shares of Common
Stock or Restricted Stock, the issuance may be effected on a noncertificated basis, to
the extent not prohibited by applicable law or the applicable rules of any stock
exchange.

	8.	 	TRANSFERABILITY OF GRANTS
	 
	 	 	Except as otherwise provided by rules of the Committee, shares of Restricted Stock,
Restricted Stock Units and other rights of Participants under this Plan shall not be
transferable by a Participant otherwise than by (i) the Participant’s last will and
testament or (ii) by the applicable laws of descent and distribution.
	 
	9.	 	TAXES
	 
	 	 	Whenever General Mills issues Common Stock under the Plan, the Company may require the
recipient to remit to the Company an amount sufficient to satisfy any federal, state or local
tax withholding requirements prior to the delivery of such Common Stock, or, in the
discretion of the Committee, the Company may withhold from the cash payments and shares to be
delivered cash and shares, respectively, sufficient to satisfy all or a portion of such
tax-withholding requirements.
	 
	10.	 	CHANGE OF CONTROL

	 	(a)	 	Upon a Change of Control:

	 	(i)	 	All shares of Restricted Stock shall immediately vest in full and Common
Stock free of restrictions shall be delivered to Participants, effective as of the
date of the Change of Control.
	 
	 	(ii)	 	If the Change of Control constitutes a “change in control” event as
described in IRS regulations or other guidance under Code section
409A(a)(2)(A)(v), Participants’ Restricted Stock Units shall fully vest and be
settled upon such Change of Control.
	 
	 	(iii)	 	If the Change of Control does not constitute a “change in
control” event as described in IRS regulations or other guidance under Code
section 409A(a)(2)(A)(v), Restricted Stock Units that are not section 409A
Restricted Stock Units and on which a deferral election was not made shall fully
vest and be settled upon such Change of Control. However, the section 409A
Restricted Stock Units, or Restricted Stock Units for which a proper deferral
election was made, shall fully vest upon a Change of Control and be settled on the
date the original restriction period would have closed, or the date elected
pursuant to the proper deferral election, as applicable.
	 
	 	(iv)	 	The Committee may make such additional adjustments and/or
settlements of outstanding Awards for the Performance Period within which the
Change of Control occurs as it deems appropriate and consistent with the Plan’s
purposes; provided, however, that any such additional adjustments and/or
settlements shall be in compliance with section 409A.

	 	(b)	 	“Change of Control” means the occurrence of any of the following events:

	 	(i)	 	The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the 1934 Act), (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
voting securities of General Mills where such acquisition causes such Person to
own 20 percent or more of the combined voting power of the then outstanding voting
securities of General Mills entitled to vote generally in the election of
directors (the “Outstanding Voting Securities”); provided, however, that for
purposes of this subsection (i), the following acquisitions shall not be deemed to
result in a Change of Control: (w) any acquisition directly from General Mills,
(x) any acquisition by the Company, (y) any acquisition by any employee benefit
plan (or

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	 	 	 	related trust) sponsored or maintained by General Mills or any corporation
controlled by General Mills or (z) any acquisition by any corporation pursuant to
a transaction that complies with clauses (x), (y) and (z) of subsection (iii)
below; and provided, further, that if any Person’s beneficial ownership of the
Outstanding Voting Securities reaches or exceeds 20 percent as a result of a
transaction described in clause (w) or (x) above, and such Person subsequently
acquires beneficial ownership of additional voting securities of General Mills,
such subsequent acquisition shall be treated as an acquisition that causes such
Person to own 20 percent or more of the Outstanding Voting Securities; or

	 	(ii)	 	Individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the
Board, provided, however, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the shareholders of
General Mills, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board shall be considered as though such individual were
a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of directors
or other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board; or
	 
	 	(iii)	 	The consummation of a reorganization, merger or consolidation or sale
or other disposition of all or substantially all of the assets of General Mills
(“Business Combination”); excluding, however, such a Business Combination pursuant
to which (x) all or substantially all of the individuals and entities who were the
beneficial owners of the Outstanding Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 60
percent of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation that as a result of such transaction owns General Mills or all or
substantially all of the assets of General Mills either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Voting
Securities, (y) no Person (excluding any employee benefit plan, or related trust,
of General Mills or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20 percent or more of, respectively,
the then outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then outstanding voting
securities of such corporation, except to the extent that such ownership existed
prior to the Business Combination and (z) at least a majority of the members of
the board of directors of the corporation resulting from such Business Combination
were members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business Combination;
or
	 
	 	(iv)	 	Approval by the stockholders of General Mills of a complete liquidation
or dissolution of General Mills.

	11.	 	TERMINATION OF EMPLOYMENT
	 
	 	 	The following rules regarding the effect of a Participant’s termination of employment on his
or her Restricted Stock or Restricted Stock Units shall apply unless otherwise determined by
the Committee.

	 	(a)	 	If the Participant’s employment by the Company is terminated by either:

	 	(i)	 	the voluntary resignation of the Participant or
	 
	 	(ii)	 	a Company discharge due to Participant’s illegal activities, poor work
performance, misconduct or violation of the Company’s policies or practices,

	 	 	 	the Participant’s shares of Restricted Stock or Restricted Stock Units, which are
unvested on the date of termination, shall be forfeited.
	 
	 	(b)	 	If the Participant’s employment by the Company is terminated for any reason
other than specified in Section 11(a), (c), (d) or (e), the following rules shall
apply:

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	 	(i)	 	In the event that, at the time of such termination, the sum of
Participant’s age and service with the Company equals or exceeds 70, the
Participant’s Restricted Stock and Restricted Stock Units shall fully vest and
shall be paid (or deferred, as appropriate), immediately unless otherwise provided
in the Grant Agreement.
	 
	 	(ii)	 	In the event that, at the time of such termination, the sum of
Participant’s age and service with the Company is less than 70, Restricted Stock
and Restricted Stock Units shall vest in a pro-rata amount based on full months of
employment completed during the Restricted Period from the date of grant to
termination of employment and be paid (or deferred, as appropriate), immediately,
and the Participant’s remaining Restricted Stock and Restricted Stock Units shall
be forfeited; except if the Participant is an executive officer of the Company,
all Restricted Stock and Restricted Stock Units shall fully vest as of the date of
termination.

	 	 	 	Any section 409A Restricted Stock Units that vest under this provision shall be paid on
the Participant’s separation from service (within the meaning of Code section 409A), or
in the case of a Participant who is a specified employee (within the meaning of Code
section 409A) shall be paid on the first day of the seventh month following the month
of separation from service.
	 
	 	(c)	 	Death. A Participant who dies during the Restricted Period for any
Restricted Stock or Restricted Stock Units granted on or after June 1, 2002 shall fully
vest in, and have settled, such shares of Restricted Stock or Restricted Stock Units,
effective as of the date of death. A Participant who dies during the Restricted
Period, for any Restricted Stock or Restricted Stock Units granted prior to June 1,
2002, shall vest in, and have settled, a proportionate number of such shares of
Restricted Stock or Restricted Stock Units, effective as of the date of death. Such
proportionate vesting shall be pro-rata, based on the number of full months of
employment completed during the Restricted Period prior to the date of death, as a
percentage of the applicable Restricted Period. All vested Awards pursuant to this
paragraph shall be paid to the person(s) designated under the terms of Section 12(c) of
this Plan.
	 
	 	(d)	 	Retirement. The Committee shall determine, at the time of a Grant, the
treatment of the Restricted Stock or Restricted Stock Units upon the retirement of the
Participant during the Restricted Period. Unless other terms are specified in the
original Grant or the Grant Agreement, if the termination of employment is due to a
Participant’s separation from service (within the meaning of Code section 409A) on or
after age 55, the Participant shall fully vest in, and be paid, all Restricted Stock or
Restricted Stock Units effective as of the date of the separation from service (within
the meaning of Code section 409A). Notwithstanding the previous sentence, in the case
of a Participant who is a specified employee (within the meaning of Code section 409A)
any Restricted Stock Units (not subject to a proper deferral election) shall be paid on
the first day of the seventh month following the month of separation of service.
	 
	 	 	 	Restricted Stock Units that could vest upon retirement under this Section 11(d) at any
time within the Award’s Restricted Period shall be referred to as a “Section 409A
Restricted Stock Unit”.
	 
	 	(e)	 	Spin-offs. If the termination of employment during the Restricted
Period for any Restricted Stock or Restricted Stock Units is due to the cessation,
transfer or spin-off of a complete line of business of the Company, the Committee, in
its sole discretion, shall determine the treatment of such Restricted Stock and
Restricted Stock Units. Such treatment will be consistent with Code section 409A, and
in particular will take into account whether a separation from service has occurred
within the meaning of section 409A.

	12.	 	ADMINISTRATION OF THE PLAN

	 	(a)	 	Administration. The authority to control and manage the operations and
administration of the Plan shall be vested in the Committee in accordance with this
Section 12, subject to the following:

	 	(i)	 	Subject to the provisions of the Plan, the Committee shall have the
authority and discretion to select from among the eligible Company employees those
persons who shall receive Awards, to determine the time or times of receipt, to
determine the types of Awards and the Amounts covered by the grants, to establish
the terms, conditions, restrictions, and other provisions of such Grants, and
(subject to the restrictions imposed by Section 13) to cancel or suspend Grants.
In making such determinations, the Committee may take into account the nature of
services rendered by the individual, the individual’s present and potential
contribution to the Company’s success and such other factors as the Committee
deems relevant.

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	 	(ii)	 	The Committee shall have the authority and discretion to establish terms
and conditions of Awards as the Committee determines to be necessary or
appropriate to conform to applicable requirements or practices of jurisdictions
outside the United States.
	 
	 	(iii)	 	The Committee shall have the authority and discretion to interpret the
Plan, to establish, amend and rescind any rules and regulations relating to the
Plan, to determine the terms and provisions of any agreements made pursuant to the
Plan, and to make all other determinations that may be necessary or advisable for
the administration of the Plan.
	 
	 	(iv)	 	Any interpretation of the Plan by the Committee and any decision made by
it under the Plan shall be final and binding.

	 	(b)	 	Delegation by Committee. Except to the extent prohibited by applicable
law or the applicable rules of a stock exchange, the Committee may delegate all or any
portion of its responsibilities and powers to any one or more of its members and may
delegate all or any part of its responsibilities and powers to any person or persons
selected by it. Any such allocation or delegation may be revoked by the Committee at
any time.
	 
	 	(c)	 	Designation of Beneficiary. Each Participant to whom an Award has been
made under the Plan may designate a beneficiary or beneficiaries to receive any payment
which under the terms of the Plan and the relevant Award Agreement may become payable on
or after the Participant’s death. At any time, and from time to time, any such
designation may be changed or cancelled by the Participant without the consent of any
such beneficiary. Any such designation, change or cancellation must be on a form
provided for that purpose by the Committee and shall not be effective until received by
the Committee. Such form may establish other rules as the Committee deems appropriate.
If no beneficiary has been properly designated by a deceased Participant, or if all the
designated beneficiaries have predeceased the Participant, the beneficiary shall be the
Participant’s estate. If the Participant designates more than one beneficiary, any
payments under the Plan to such beneficiaries shall be made in equal shares, unless the
Participant has expressly designated otherwise, in which case the payments shall be made
in the shares designated by the Participant.

	13.	 	AMENDMENTS OF THE PLAN
	 
	 	 	The Committee may from time to time prescribe, amend and rescind rules and regulations
relating to the Plan. Subject to the approval of the Board, where required, the Committee
may at any time terminate, amend or suspend the operation of the Plan, provided that no
action shall be taken by the Board or the Committee without the approval of the stockholders
of General Mills which would amend the Maximum Amount that may be granted to any single
Participant. No termination, modification, suspension or amendment of the Plan shall alter
or impair the rights of any Participant pursuant to an outstanding Grant without the consent
of the Participant. There is no obligation for uniformity of treatment of Participants under
the Plan.
	 
	14.	 	FOREIGN JURISDICTIONS
	 
	 	 	It is intended that in lieu of awarding Restricted Stock, the Committee may grant Restricted
Stock Units to employees of the Company who are subject to the laws of foreign jurisdictions
and entitled to receive Awards under the Plan. In addition, the Committee may adopt, amend
and terminate arrangements, not inconsistent with the intent of the Plan, as it may deem
necessary or desirable to make available tax or other benefits of the laws of any foreign
jurisdiction, to employees of the Company who are subject to such laws and who receive Grants
under the Plan.
	 
	15.	 	NOTICE
	 
	 	 	All notices to the Company regarding the Plan shall be in writing, effective as of actual
receipt by the Company, and shall be sent to:

General Mills, Inc.

Number One General Mills Boulevard

Minneapolis, Minnesota 55426

Attention: Corporate Compensation

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	16.	 	DEFINITIONS
	 
	 	 	For purposes of this Plan, the following terms shall have the meanings set forth below.
	 
	 	 	“1934 Act” means the Securities Exchange Act of 1934.
	 
	 	 	“Award” is defined in Section 4.
	 
	 	 	“Board” means the Board of Directors of General Mills.
	 
	 	 	“Business Combination” is defined in Section 10(b)(iii).
	 
	 	 	“Cash Dividend Equivalent” is defined in Section 6(c).
	 
	 	 	“Change of Control” is defined in Section 10(b).
	 
	 	 	“Committee” means the Compensation Committee of the Board, or such other committee as the
Board may from time to time select, provided that the Committee must at all times be composed
of two or more members of the Board, each of whom qualifies as an “outside director” within
the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended.
	 
	 	 	“Cash Bonuses” means cash payments to Participants under this Plan.
	 
	 	 	“Common Stock” means the common stock, par value $0.10 per share, of General Mills.
	 
	 	 	“Company” is defined in Section 1.
	 
	 	 	“Fair Market Value” of a share of Common Stock as of any given date equals the closing price
of the Common Stock on the New York Stock Exchange on the applicable date.
	 
	 	 	“General Mills” is defined in Section 1.
	 
	 	 	“Grant” means a grant to an eligible employee of the opportunity to earn Awards under this
Plan for any Performance Period pursuant to Section 5(b), including the awarding of
Restricted Stock and crediting of Restricted Stock Units to a Restricted Stock Units Account.
	 
	 	 	“Grant Agreement” is defined in Section 6(d).
	 
	 	 	“Grant Date” is the first business day after the end of the applicable Performance Period.
	 
	 	 	“Incumbent Board” is defined in Section 10(b)(ii).
	 
	 	 	“Maximum Amount” is defined in Section 5(c).
	 
	 	 	“Net Earnings” means the Company’s earnings from continuing operations before unusual items
and after taxes.
	 
	 	 	“Outstanding Voting Securities” is defined in Section 10(b)(i).
	 
	 	 	“Participant” is defined in Section 3.
	 
	 	 	“Performance Period” means a fiscal year of the Company, or such other period as the
Committee may from time to time establish.
	 
	 	 	“Person” is defined in Section 10(b)(i).
	 
	 	 	“Plan” is defined in Section 1.
	 
	 	 	“Restricted Period” is defined in Section 6(a).
	 
	 	 	“Restricted Stock” is defined in Section 4.

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	 	 	“Restricted Stock Unit” is defined in Section 4.
	 
	 	 	“Vesting Date” means the date on which Restricted Stock or Restricted Stock Units vest,
pursuant to Sections 6, 10, or 11.

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Exhibit 4.1

WEATHERFORD INTERNATIONAL LTD.,

a Bermuda exempted company

as Issuer

WEATHERFORD INTERNATIONAL LTD.,

a Swiss joint-stock corporation

as Guarantor

WEATHERFORD INTERNATIONAL, INC.,

a Delaware corporation

as Guarantor

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee

FOURTH SUPPLEMENTAL INDENTURE

Dated as of September 23, 2010

To

INDENTURE

Dated as of October 1, 2003

5.125% SENIOR NOTES DUE 2020

6.750% SENIOR NOTES DUE 2040

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 Relation to Indenture; Definitions
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.01. Relation to Indenture
	 	 	1	 
	SECTION 1.02. Definitions
	 	 	1	 
	SECTION 1.03. General References
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 The Series of Securities
	 	 	2	 
	 
	 	 	 	 
	SECTION 2.01. The Form and Title of the Securities
	 	 	2	 
	SECTION 2.02. Amount
	 	 	2	 
	SECTION 2.03. Stated Maturity and Denominations
	 	 	2	 
	SECTION 2.04. Interest and Interest Rates
	 	 	2	 
	SECTION 2.05. Place of Payment
	 	 	2	 
	SECTION 2.06. Optional Redemption
	 	 	3	 
	SECTION 2.07. Unconditional Guarantee
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 3 Other Amendments to Indenture
	 	 	3	 
	 
	 	 	 	 
	SECTION 3.01. Amendments to Indenture
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 4 Miscellaneous
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.01. Certain Trustee Matters
	 	 	9	 
	SECTION 4.02. Continued Effect
	 	 	9	 
	SECTION 4.03. Governing Law
	 	 	9	 
	SECTION 4.04. Counterparts
	 	 	9	 

EXHIBIT

	 	 	 

	Exhibit A-1:

	 	Form of 2020 Note
	Exhibit A-2:

	 	Form of 2040 Note
	Exhibit B:

	 	Form of Guarantee Notation

 

 

     FOURTH SUPPLEMENTAL INDENTURE dated as of September 23, 2010 (this “Fourth Supplemental
Indenture”), among Weatherford International Ltd., a Bermuda exempted company (the
“Company”), Weatherford International Ltd., a Swiss joint-stock corporation (“Weatherford
Switzerland”), Weatherford International, Inc., a Delaware corporation (“Weatherford Delaware.”,
and, together with Weatherford Switzerland, the “Guarantors”), and Deutsche Bank Trust Company
Americas, a New York banking corporation, as trustee under the Indenture referred to below (in such
capacity, the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company, Weatherford Delaware and the Trustee are parties to an Indenture dated
as of October 1, 2003 (the “Original Indenture”) (the Original Indenture, as supplemented from time
to time, including without limitation pursuant to the Third Supplemental Indenture dated as of
February 26, 2009 (the “Third Supplemental Indenture”), among the Company, the Guarantors and the
Trustee, and this Fourth Supplemental Indenture being referred to herein as the “Indenture”); and

     WHEREAS, under the Original Indenture as supplemented and amended by the Third Supplemental
Indenture, a new series of Securities may at any time be established in accordance with the
provisions of the Original Indenture as supplemented and amended by the Third Supplemental
Indenture, and the terms of such series may be established by a supplemental indenture executed by
the Company, the Guarantors and the Trustee; and

     WHEREAS, the Company and the Guarantors propose to create under the Indenture two new series
of Securities, which will be guaranteed by the Guarantors pursuant to their Guarantees as set forth
in Article Fourteen of the Original Indenture as supplemented and amended by the Third Supplemental
Indenture (as made applicable to the Notes, defined herein, pursuant to this Fourth Supplemental
Indenture); and

     WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee as provided in the Indenture, the valid and binding
obligations of the Company, to make the Guarantees of such Notes by the Guarantors the valid and
binding obligation of the Guarantors, and to make this Fourth Supplemental Indenture a valid and
binding agreement in accordance with the Original Indenture, have been done or performed;

     NOW, THEREFORE, in consideration of the premises, agreements and obligations set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree, for the equal and proportionate benefit of all
Holders of the Notes, as follows:

ARTICLE 1

Relation to Indenture; Definitions

     SECTION 1.01. Relation to Indenture.

     With respect to the Notes and the Guarantees thereof by the Guarantors, this Fourth
Supplemental Indenture constitutes an integral part of the Indenture.

     SECTION 1.02. Definitions.

     For all purposes of this Fourth Supplemental Indenture, capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned thereto in the Original Indenture as
supplemented and amended by the Third Supplemental Indenture.

     SECTION 1.03. General References.

     All references in this Fourth Supplemental Indenture to Articles and Sections, unless
otherwise specified, refer to the corresponding Articles and Sections of this Fourth Supplemental
Indenture; and the terms “herein”, “hereof”, “hereunder” and any other word of similar import
refers to this Fourth Supplemental Indenture.

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ARTICLE 2

The Series of Securities

     SECTION 2.01. The Form and Title of the Securities.

     There is hereby established two new series of Securities to be issued under the Indenture and
to be designated as the Company’s 5.125% Senior Notes due 2020 (the “2020 Notes”) and the Company’s
6.750% Senior Notes due 2040 (the “2040 Notes” and together with the 2020 Notes, the “Notes”). The
Notes shall be substantially in the forms attached as Exhibits A-1 and A-2 hereto,
in each case, with such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by the Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as the Company may deem appropriate
or as may be required or appropriate to comply with any applicable laws or with any rules made
pursuant thereto or with the rules of any securities exchange or automated quotation system on
which the Notes may be listed or traded, or to conform to general usage, or as may, consistently
with the Indenture, be determined by the officers executing such Notes, as evidenced by their
execution thereof.

     The Notes shall be executed, authenticated and delivered in accordance with the provisions of,
and shall in all respects be subject to, the terms, conditions and covenants of the Original
Indenture as supplemented and amended by the Third Supplemental Indenture and this Fourth
Supplemental Indenture (including the forms of Note set forth as Exhibits A-1 and
A-2 hereto (the terms of which are incorporated in and made a part of this Fourth
Supplemental Indenture for all intents and purposes)).

     SECTION 2.02. Amount.

     The aggregate principal amount of the Notes which may be authenticated and delivered pursuant
hereto is unlimited. The Trustee shall initially authenticate and deliver Notes for original issue
in initial aggregate principal amounts of up to $800,000,000 of the 2020 Notes and up to
$600,000,000 of the 2040 Notes upon delivery to the Trustee of a Company Order for the
authentication and delivery of such Notes. The Company may, from time to time, without notice to or
the consent of the Holders of the Notes, increase the principal amount of the Notes under the
Indenture and issue such increased principal amount (or any portion thereof), in which case any
additional Notes so issued will have the same form and terms (other than the date of issuance and,
under certain circumstances, the date from which interest thereon will begin to accrue), and will
carry the same right to receive accrued and unpaid interest, as the Notes previously issued, and
such additional Notes will form a single series with the Notes previously issued.

     SECTION 2.03. Stated Maturity and Denominations.

     The Stated Maturity of the 2020 Notes shall be September 15, 2020 and the Stated Maturity of
the 2040 Notes shall be September 15, 2040. The Notes are issuable only in registered form without
coupons in denominations of U.S. $2,000 and any integral multiple of $1,000 in excess thereof.

     SECTION 2.04. Interest and Interest Rates.

     The rate or rates at which the Notes shall bear interest, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which any such interest shall be payable and
the Regular Record Date for any interest payable on any Interest Payment Date, in each case, shall
be as set forth in the form of applicable Note set forth as Exhibit A-1 or Exhibit
A-2 hereto.

     SECTION 2.05. Place of Payment.

     As long as any Notes are outstanding, the Company shall maintain an office or agency in the
Borough of Manhattan, The City of New York, where Notes may be presented for payment.

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     SECTION 2.06. Optional Redemption.

     At its option, the Company may redeem either series of the Notes, in whole or in part, in
principal amounts of $2,000 or an integral multiple of $1,000 in excess thereof, at any time or
from time to time, at the applicable redemption price determined as set forth in the form of
applicable Note attached hereto as Exhibits A-1 and A-2, in accordance with the
terms set forth in the Note and in accordance with Article Eleven of the Original Indenture.

     SECTION 2.07. Unconditional Guarantees.

     Article Fourteen of the Original Indenture (as amended and supplemented by the Third
Supplemental Indenture and this Fourth Supplemental Indenture) shall be applicable to the Notes,
and accordingly, as more fully set forth in such Article Fourteen, the Guarantors, jointly and
severally, fully, irrevocably, unconditionally and absolutely guarantee to the Holders of Notes and
to the Trustee the due and punctual payment of the principal of, and premium, if any, and interest
on the Notes, and all other Indenture Obligations, when and as the same shall become due and
payable, whether at the Stated Maturity, upon redemption or by declaration of acceleration or
otherwise.

     To further evidence the Guarantees of the Notes, the Guarantors hereby agree that a notation
of such Guarantees in substantially in the form attached as Exhibit B hereto, in each case,
with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by the Indenture, shall be endorsed on each Note authenticated and delivered by the
Trustee and executed by either manual or facsimile signature of an officer of each of the
Guarantors. Each Guarantor hereby agrees that its Guarantee of the Notes shall remain in full force
and effect notwithstanding any failure to endorse on any such Note a notation relating to the
Guarantee thereof.

ARTICLE 3

Other Amendments to Indenture

     SECTION 3.01. Amendments to Indenture

     The amendments contained in this Section 3.01 shall apply to the Notes only and not to any
other series of Securities issued under the Indenture. Such amendments shall be effective only for
so long as there remain outstanding any Notes. The Indenture is hereby amended, subject to the
preamble of this Section 3.01 and with respect to the Notes only, by amending and restating
Sections 10.5 and 10.6 thereto as follows and by adding the following as new Sections 10.10 and
10.11 thereto:

     Section 10.5. Limitation on Liens.

     Weatherford Switzerland will not, nor will it permit any Subsidiary to, create, assume, incur
or suffer to exist any Lien upon any property, whether owned or leased on the date of this Fourth
Supplemental Indenture or thereafter acquired, to secure any Debt of Weatherford Switzerland or any
other Person (other than the Securities issued hereunder), without in any such case making
effective provision whereby all of the Securities Outstanding hereunder shall be secured equally
and ratably with, or prior to, such Debt so long as such Debt shall be so secured. This restriction
shall not apply to:

     (1) Liens (i) existing on the date any Securities are issued under this Indenture or
(ii) provided for under the terms of agreements existing on such date securing indebtedness
existing on such date;

     (2) Liens on current assets to secure current liabilities;

     (3) Liens on property acquired, constructed, altered or improved by Weatherford
Switzerland or any Subsidiary of Weatherford Switzerland after the date of this Indenture
which are created or assumed contemporaneously with, or within one year after, such
acquisition (or in the case of property constructed, altered or improved, after the
completion and commencement of commercial operation of such property, whichever is later) to
secure or provide for the payment of any part of the purchase price of such property or the
cost of such construction, alteration or improvement, it being understood that if a
commitment for

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such a financing is obtained prior to or within such one year period, the applicable Lien
shall be deemed to be included in this clause (3) whether or not such Lien is created within
such one year period; provided that in the case of any such construction, alteration or
improvement the Lien shall not apply to any property theretofore owned by Weatherford
Switzerland or any Subsidiary of Weatherford Switzerland, other than (i) the property so
altered or improved and (ii) any theretofore unimproved real property on which the property
so constructed or altered, or the improvement, is located;

     (4) Liens on any property existing at the time of acquisition thereof (including Liens
on any property acquired from or held by a Person which is consolidated or amalgamated with
or merged with or into Weatherford Switzerland or a Subsidiary of Weatherford Switzerland)
and Liens outstanding at the time any Person becomes a Subsidiary of Weatherford Switzerland
that are not incurred in connection with such entity becoming a Subsidiary of Weatherford
Switzerland;

     (5) Liens in favor of Weatherford Switzerland or any Subsidiary of Weatherford
Switzerland;

     (6) Liens on any property (i) in favor of the United States, any State thereof, any
foreign country or any department, agency, instrumentality or political subdivision of any
such jurisdiction, to secure partial, progress, advance or other payments pursuant to any
contract or statute, (ii) securing any indebtedness incurred for the purpose of financing
all or any part of the purchase price or the cost of constructing, installing or improving
the property subject to such Liens, including, without limitation, Liens to secure Debt of
the pollution control or industrial revenue bond type, or (iii) securing indebtedness issued
or guaranteed by the United States, any State thereof, any foreign country, or any
department, agency, instrumentality or political subdivision of any such jurisdiction;

     (7) Permitted Liens; and

     (8) any extension, renewal, or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in any of the foregoing clauses
(1), (2), (3), (4), (5), and (6); provided, however, that the principal amount of Debt
secured thereby shall not exceed the principal amount of Debt so secured at the time of such
extension, renewal or replacement, together with the reasonable costs related to such
extension, renewal or replacement, and that such extension, renewal or replacement shall be
limited to all or a part of the property which secured the Lien so extended, renewed or
replaced (plus improvements on such property).

Notwithstanding the foregoing provisions of this Section 10.5, Weatherford Switzerland and any
Subsidiary of Weatherford Switzerland may issue, assume or guarantee secured Debt, which would
otherwise be subject to the foregoing restrictions, in an aggregate amount which, together with all
other such secured Debt and together with the aggregate amount of Attributable Indebtedness of
Weatherford Switzerland and its Subsidiaries deemed to be outstanding in respect of all
Sale-Leaseback Transactions (excluding any such Sale-Leaseback Transactions the proceeds of which
have been applied in accordance with clauses (a), (b) or (c) of Section 10.6) does not exceed 15%
of Consolidated Net Worth, as shown on a consolidated balance sheet, as of a date not more than 150
days prior to the proposed transaction, prepared by Weatherford Switzerland in accordance with
generally accepted accounting principles.

For purposes of this Section 10.5 and for Section 10.6 only, “Subsidiary” means (i) a corporation
more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by
Weatherford Switzerland or by one or more other Subsidiaries of Weatherford Switzerland, or by
Weatherford Switzerland and one or more other Subsidiaries of Weatherford Switzerland or (ii) any
partnership or similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at the time be so owned. For the purposes of this definition,
“voting stock” means capital stock or equity interests which ordinarily have voting power for the
election of directors, whether at all times or only so long as no senior class of stock has such
voting power by reason of any contingency.

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     Section 10.6. Restriction of Sale-Leaseback Transactions.

     Weatherford Switzerland shall not, and shall not permit any Subsidiary of Weatherford
Switzerland to, enter into any Sale-Leaseback Transaction with any Person (other than Weatherford
Switzerland or a Subsidiary of Weatherford Switzerland) unless:

     (a) at the time of entering into such Sale-Leaseback Transaction, Weatherford
Switzerland or such Subsidiary of Weatherford Switzerland would be entitled to incur Debt,
in a principal amount equal to the Attributable Indebtedness with respect to such
Sale-Leaseback Transaction, secured by a Lien on the property subject to such Sale-Leaseback
Transaction, pursuant to Section 10.5 without equally and ratably securing the Securities
pursuant to such Section;

     (b) after the Issue Date and within a period commencing six months prior to the
consummation of such Sale-Leaseback Transaction and ending six months after the consummation
thereof, Weatherford Switzerland or such Subsidiary of Weatherford Switzerland shall have
expended for property used or to be used in the ordinary course of business of Weatherford
Switzerland or such Subsidiary of Weatherford Switzerland (including amounts expended for
additions, expansions, alterations, repairs and improvements thereto) an amount equal to all
or a portion of the net proceeds of such Sale-Leaseback Transaction, and Weatherford
Switzerland shall have elected to designate such amount as a credit against such
Sale-Leaseback Transaction (with any such amount not being so designated to be applied as
set forth in clause (c) below; or

     (c) during the 12-month period after the effective date of such Sale-Leaseback
Transaction, Weatherford Switzerland shall have applied to the voluntary defeasance or
retirement of Securities or any pari passu indebtedness of Weatherford Switzerland an amount
equal to the net proceeds of the sale or transfer of the real or personal property leased in
such Sale-Leaseback Transaction, which amount shall not be less than the fair value of such
property at the time of entering into such Sale-Leaseback Transaction (adjusted to reflect
the remaining term of the lease and any amount expended by Weatherford Switzerland as set
forth in clause (b) above), less an amount equal to the principal amount of Securities and
pari passu indebtedness voluntarily defeased or retired by Weatherford Switzerland within
such 12-month period and not designated as a credit against any other Sale-Leaseback
Transaction entered into by Weatherford Switzerland or any Subsidiary of Weatherford
Switzerland during such period.

     Section 10.10 Change of Control Repurchase at the Option of Holders

     (a) Upon the occurrence of a Change of Control Triggering Event, Holders of Securities will
have the right to require the Company to make an offer (the “Change of Control Offer”) to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
their Securities at a purchase price in cash equal to 101% of the aggregate principal amount of
Securities repurchased plus accrued and unpaid interest, if any, on the Securities repurchased, to
the date of purchase (the “Change of Control Payment”). Within 30 days following any Change of
Control Triggering Event, the Company will mail a notice to each Holder of Securities describing
the transaction or transactions that constitute the Change of Control Triggering Event and stating:

(1) that the Change of Control Offer is being made pursuant to this Section
10.10 and that all Securities tendered will be accepted for payment;

(2) the purchase price and the purchase date, which shall be no earlier than 30
days and no later than 60 days from the date such notice is mailed (the “Change of
Control Payment Date”);

(3) that any Securities not tendered will continue to accrue interest;

(4) that, unless the Company defaults in the payment of the Change of Control
Payment, all Securities accepted for payment pursuant to the Change of Control Offer
will cease to accrue interest after the Change of Control Payment Date;

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(5) that Holders electing to have any Securities repurchased pursuant to a
Change of Control Offer will be required to surrender the Securities, with the form
entitled “Option of Holder to Elect Purchase” attached to the Securities completed,
or transfer by book-entry transfer, to the Paying Agent at the address specified in
the notice prior to the close of business on the third Business Day preceding the
Change of Control Payment Date;

(6) that Holders will be entitled to withdraw their election if the Paying
Agent receives, not later than the close of business on the second Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile,
transmission or letter setting forth the name of the Holder, the principal amount of
Securities delivered for purchase, and a statement that such Holder is withdrawing
his election to have the Securities purchased; and

(7) that Holders whose Securities are being purchased only in part will be
issued new Securities equal in principal amount to the unpurchased portion of the
Securities surrendered, which unpurchased portion must be equal to $2,000 in
principal amount or in any integral multiple of $1,000 in excess thereof.

     The Company will comply with the requirements of Rule 14e-1 under the Exchange Act, and any
other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Securities as a result of a Change of Control
Triggering Event. To the extent that the provisions of any securities laws or regulations conflict
with the provisions of this Section 10.10 (or compliance with this Section 10.10 would constitute a
violation of any such laws or regulations), the Company will comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations under this Section
10.10 by virtue of such conflicts.

     (b) On or before the Change of Control Payment Date, the Company will be required, to the
extent lawful, to:

(1) accept for payment all Securities or portions of Securities properly tendered
pursuant to the Change of Control Offer;

(2) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Securities or portions of Securities properly tendered; and

(3) deliver or cause to be delivered to the Trustee the Securities properly accepted.

     The Paying Agent will promptly (but in any case not later than five days after the Change of
Control Payment Date) mail to each Holder of Securities properly tendered the Change of Control
Payment for such Securities, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Security equal in principal amount to any
unpurchased portion of the Securities surrendered, if any; provided that each new Security will be
in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. The Company
will publicly announce the results of the Change of Control Offer on or as soon as practicable
after the Change of Control Payment Date.

     If Holders of not less than 95% in aggregate principal amount of a series of outstanding
Securities validly tender and do not withdraw such Securities in a Change of Control Offer and the
Company, or any third party making a Change of Control Offer in lieu of the Company as described
below, purchases all of such Securities validly tendered and not withdrawn by such Holders, the
Company will have the right, upon not less than 30 nor more than 60 days’ prior notice, given not
more than 30 days following such purchase pursuant to the Change of Control Offer described above,
to redeem such Securities that remain outstanding following such purchase at a redemption price in
cash equal to the applicable Change of Control Payment plus, to the extent not included in the
Change of Control Payment, accrued and unpaid interest, if any, to the date of redemption.

     (d) Notwithstanding anything to the contrary in this Section 10.10, the Company will not be
required to make a Change of Control Offer with respect to a series of Securities upon a Change of
Control Triggering Event if

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(1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Section 10.10 and purchases all Securities
properly tendered and not withdrawn under the Change of Control Offer, or (2) notice of redemption
has been given pursuant to Section 11.4 with respect to a redemption of all such Securities then
outstanding pursuant to Article Eleven, unless and until there is a default in payment of the
applicable redemption price.

     (e) For purposes of this Section 10.10, the following definitions shall be applicable:

(1) “Below Investment Grade Rating Event” means, with respect to a series of
Securities, the Securities are rated below an Investment Grade Rating by each of the Rating
Agencies on any date from the date of the public notice of an arrangement that could result
in a Change of Control until the end of the 60-day period following public notice of the
occurrence of the Change of Control (which 60-day period shall be extended so long as the
rating of the Securities is under publicly announced consideration for possible downgrade by
either of the Rating Agencies).

(2) “Change of Control” means the occurrence of any of the following: (1) the direct or
indirect sale, transfer, conveyance or other disposition (other than by way of merger,
amalgamation, consolidation, plan or scheme of arrangement, exchange offer, business
combination or similar transaction of the Weatherford Parent Company), in one or a series of
related transactions, of all or substantially all of the properties or assets of the
Weatherford Parent Company and its Subsidiaries taken as a whole to any person (as such term
is used in Section 13(d) of the Exchange Act) other than the Weatherford Parent Company or
one of its Subsidiaries or a Person controlled by the Weatherford Parent Company or one of
its Subsidiaries; (2) the consummation of any transaction (including, without limitation,
any merger, amalgamation, consolidation, plan or scheme of arrangement, exchange offer,
business combination or similar transaction) the result of which is that any person (as such
term is used in Section 13(d) of the Exchange Act) becomes the beneficial owner, directly or
indirectly, of more than 50% of the then outstanding number of the Weatherford Parent
Company’s voting shares (excluding a Redomestication of the Weatherford Parent Company); or
(3) the first day on which a majority of the members of the Weatherford Parent Company’s
Board of Directors are not Continuing Directors.

(3) “Change of Control Triggering Event” means the occurrence of both a Change of
Control and a Below Investment Grade Rating Event.

(4) “Continuing Directors” means, as of any date of determination, any member of the
Board of Directors of the Weatherford Parent Company who (1) was a member of such Board of
Directors on the date of the issuance of the Securities; or (2) was nominated for election
or appointed or elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board of Directors at the time of such
nomination, appointment or election (either by a specific vote or by approval of the
Weatherford Parent Company’s proxy statement in which such member was named as a nominee for
election as a director, without objection to such nomination).

(5) “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent under any successor ratings categories of Moody’s) by Moody’s and BBB- (or the
equivalent under any successor ratings categories of S&P) by S&P.

(6) “Moody’s” means Moody’s Investors Service, Inc.

(7) “Rating Agencies” means (1) each of Moody’s and S&P; and (2) if either of Moody’s
or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly
available for reasons outside of the Weatherford Parent Company’s control, a “nationally
recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F)
under the Exchange Act, selected by the Weatherford Parent Company (as certified by a
resolution of the Weatherford Parent Company’s Board of Directors) as a replacement agency
for Moody’s or S&P, or both of them, as the case may be.

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(8) “Redomestication” means:

(a) any amalgamation, merger, plan or scheme of arrangement, exchange offer,
business combination, reincorporation, reorganization, consolidation or similar
action of the Weatherford Parent Company with or into any other person (as such term
is used in Section 13(d) of the Exchange Act), or of any other person (as such term
is used in Section 13(d) of the Exchange Act) with or into the Weatherford Parent
Company, or the sale, distribution or other disposition (other than by lease) of all
or substantially all of the properties or assets of the Weatherford Parent Company
and its Subsidiaries taken as a whole to any other person (as such term is used in
Section 13(d) of the Exchange Act),

(b) any continuation, discontinuation, domestication, redomestication,
amalgamation, merger, plan or scheme of arrangement, exchange offer, business
combination, reincorporation, reorganization, conversion, consolidation or similar
action with respect to the Weatherford Parent Company pursuant to the law of the
jurisdiction of its organization and of any other jurisdiction, or

(c) the formation of a Person that becomes, as part of the transaction or
series of related transactions, the direct or indirect owner of substantially all of
the voting shares of the Weatherford Parent Company (the “New Parent”),

     if as a result thereof

(x) in the case of any action specified in clause (a), the entity that is the
surviving, resulting or continuing Person in such amalgamation, merger, plan or
scheme of arrangement, exchange offer, business combination, reincorporation,
reorganization, consolidation or similar action, or the transferee in such sale,
distribution or other disposition,

(y) in the case of any action specified in clause (b), the entity that
constituted the Weatherford Parent Company immediately prior thereto (but
disregarding for this purpose any change in its jurisdiction of organization), or

(z) in the case of any action specified in clause (c), the New Parent

(in any such case, the “Surviving Person”) is a corporation or other entity, validly
incorporated or formed and existing in good standing (to the extent the concept of good
standing is applicable) under the laws of Delaware or another State of the United States or
under the laws of the United Kingdom, The Kingdom of the Netherlands or another member
country of the European Union or under the laws of any other jurisdiction, whose voting
shares of each class of capital stock issued and outstanding immediately following such
action, and giving effect thereto, shall be beneficially owned by substantially the same
Persons, in substantially the same percentages, as was such capital stock or shares of the
entity constituting the Weatherford Parent Company immediately prior thereto and, if the
Surviving Person is the New Parent, the Surviving Person continues to be owned, directly or
indirectly, by substantially all of the Persons who were shareholders of the Weatherford
Parent Company immediately prior to such transaction.

(9) “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

(10) “Weatherford Parent Company” means initially Weatherford Switzerland or, if a
Redomestication has occurred subsequent to the date hereof and prior to the event in
question or the date of determination, the Surviving Person resulting from such prior
Redomestication.

     Section 10.11 Use of Proceeds.

     The Company will not use any of the net proceeds received by it from the issuance and sale of
the Notes in a manner that would trigger the application of Circulars of the Swiss Bankers’
Association NR 6746 of 29 June 1993 or otherwise result in tax withholding with respect to amounts
payable to Holders under the Securities.

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ARTICLE 4

Miscellaneous

     SECTION 4.01. Certain Trustee Matters.

     The recitals contained herein shall be taken as the statements of the Company and the
Guarantors, and the Trustee assumes no responsibility for their correctness.

     The Trustee makes no representations as to the validity or sufficiency of this Fourth
Supplemental Indenture or the Notes or the proper authorization or the due execution hereof or
thereof by the Company.

     SECTION 4.02. Continued Effect.

     Except as expressly supplemented and amended by the Third Supplemental Indenture and this
Fourth Supplemental Indenture, the Original Indenture shall continue in full force and effect in
accordance with the provisions thereof, and the Original Indenture, as supplemented and amended by
the Third Supplemental Indenture, is in all respects hereby ratified and confirmed. This Fourth
Supplemental Indenture and all of its provisions shall be deemed a part of the Original Indenture
in the manner and to the extent herein and therein provided.

     SECTION 4.03. Governing Law.

     This Fourth Supplemental Indenture and the Notes shall be governed by and construed in
accordance with the laws of the State of New York.

     SECTION 4.04. Counterparts.

     This instrument may be executed in any number of counterparts, each of which shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same
instrument.

(Signature Pages Follow)

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     IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be
duly executed and delivered, all as of the day and year first above written.

	 	 	 	 	 
	 	WEATHERFORD INTERNATIONAL LTD.
a Bermuda exempted company
as Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	Joseph C. Henry 	 
	 	 	Title:  	Vice President, Co-General Counsel and
Assistant Secretary 	 
	 
	 	WEATHERFORD INTERNATIONAL LTD.
a Swiss joint-stock corporation
as Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	Joseph C. Henry 	 
	 	 	Title:  	Vice President, Co-General Counsel and Secretary 	 
	 
	 	WEATHERFORD INTERNATIONAL, INC.
a Delaware corporation
as Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	Joseph C. Henry 	 
	 	 	Title:  	Vice President — Legal and Secretary 	 

10

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS

 	 
	 	By:  	Deutsche Bank National Trust Company
as Trustee
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

11

 

	 	 	 	 	 

EXHIBIT A-1

Form of 2020 Note

[FORM OF FACE OF NOTE]

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON
OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR
IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH
LIMITED CIRCUMSTANCES.

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(“DTC”) (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL,
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

A-1-1

 

WEATHERFORD INTERNATIONAL LTD.

a Bermuda exempted company

5.125% Senior Notes due 2020

	 	 	 	 	 
	Rate of Interest	 	Maturity Date	 	Original Issue Date
	5.125%
	 	September 15, 2020
	 	September 23, 2010

			
	 	 	 
	No. ___
	 	U.S. $________________________

CUSIP No. 94707V AA8

     Weatherford International Ltd., a Bermuda exempted company (herein called the “Company”), for
value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
_______________________
United States Dollars on the maturity date shown above, and to pay interest thereon, at the annual
rate of interest shown above, from the original issue date shown above or from the most recent
Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided
for, payable semi-annually on March 15 and September 15 of each year (each, an “Interest Payment
Date”) and at such maturity date, commencing on the first such date after the original issue date
hereof, except that if such original issue date is on or after a Regular Record Date (as defined
below) but before the next Interest Payment Date, interest payments will commence on the second
Interest Payment Date following the original issue date.

     The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture, be paid to the person in whose name this Security is
registered at the close of business on the “Regular Record Date” for any such Interest Payment
Date, which shall be the fourteenth calendar day (whether or not a Business Day) preceding the
applicable Interest Payment Date. Any such interest not so punctually paid or duly provided for,
and any interest payable on such defaulted interest (to the extent lawful), will forthwith cease to
be payable to the Holder on such Regular Record Date and shall be paid to the person in whose name
this Security is registered at the close of business on a special record date for the payment of
such defaulted interest to be fixed by the Company, notice of which shall be given to Holders of
Securities not less than 14 days prior to such special record date. Payment of the principal of and
interest on this Security will be made at the agency of the Company maintained for that purpose in
New York, New York and at any other office or agency maintained by the Company for such purpose, in
United States dollars; provided, however, that, at the option of the Company, payment of interest,
other than interest due on the maturity date shown above, may be made by check mailed to the
address of the person entitled thereto as such address shall appear in the Security Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

(Signature Page Follows)

A-1-2

 

     IN WITNESS WHEREOF, Weatherford International Ltd., a Bermuda exempted company, has caused
this instrument to be executed in its corporate name by the signature of its duly authorized
officer.

	 	 	 	 	 
	 	WEATHERFORD INTERNATIONAL LTD.
a Bermuda exempted company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

     DATED: September 23, 2010

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the 5.125% Senior Notes due 2020 referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
by Deutsche Bank National Trust Company,
as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory      	 
	 	 	 
	 	By:  	 	 
	 	 	Authorized Signatory      	 

A-1-3

 

	 	 	 	 	 

[REVERSE OF NOTE]

WEATHERFORD INTERNATIONAL LTD.

a Bermuda exempted company

5.125% Senior Notes due 2020

     This Security is one of a duly authorized issue of senior securities of Weatherford
International Ltd., a Bermuda exempted company (the “Company”) (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as of October 1, 2003 (the
“Original Indenture”) (the Original Indenture, as supplemented and amended by the Third
Supplemental Indenture thereto, dated as of February 26, 2009, and the Fourth Supplemental
Indenture thereto, dated September 23, 2010, among the Company, Weatherford International Ltd., a
Swiss joint-stock corporation (“Weatherford Switzerland”), Weatherford International, Inc., a
Delaware corporation (together with Weatherford Switzerland, the “Guarantors”), and Deutsche Bank
Trust Company Americas, as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Original Indenture and any supplements and amendments thereto) being collectively
referred to as the “Indenture”), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement, of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. As provided in the Indenture, the Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest, if any, at different rates, may be subject to different redemption
provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may
be subject to different covenants and Events of Default and may otherwise vary as in the Indenture
provided or permitted. This Security is one of the series designated on the face hereof.

     This Security is the general, unsecured, senior obligation of the Company and is guaranteed
pursuant to guarantees (the “Guarantees”) by each of the Guarantors on a joint and several basis.
The Guarantees are the general, unsecured, senior obligation of the Guarantors.

     The Securities are subject to redemption upon not less than 30 nor more than 60 days’ notice
by mail, at any time, as a whole or in part, at the election of the Company at a Redemption Price
equal to the greater of: (a) 100% of the principal amount of Securities then outstanding to be
redeemed, plus accrued and unpaid interest thereon to the redemption date; or (b) the sum of the
present values of the remaining scheduled payments of principal and interest on the Securities then
outstanding to be redeemed (not including any portion of such payments of interest accrued as of
the redemption date), discounted to the redemption date on a semi-annual basis (computed based on a
360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 35 basis
points (0.35%), as calculated by an Independent Investment Banker, plus accrued and unpaid interest
thereon to the redemption date; but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.

     “Adjusted Treasury Rate” means, with respect to any redemption date: (a) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury
Issue (if no maturity is within three months before or after the remaining life, as defined below,
yields for the two published maturities most closely corresponding to the Comparable Treasury Issue
will be determined and the Adjusted Treasury Rate will be interpolated or extrapolated from such
yields on a straight-line basis, rounding to the nearest month); or (b) if such release (or any
successor release) is not published during the week preceding the calculation date or does not
contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption
date. The Adjusted Treasury Rate will be calculated on the third business day preceding the
redemption date.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities to be redeemed that would be used, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Securities.

A-1-4

 

     “Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations
for the redemption date, after excluding the highest and lowest Reference Treasury Dealer
Quotations, or (2) if an Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means Deutsche Bank Securities Inc., Morgan Stanley & Co.
Incorporated, UBS Securities LLC or J.P. Morgan Securities LLC or any of their respective
successors, as designated by the Company, or if all such firms are unwilling or unable to serve as
such, an independent investment and banking institution of national standing appointed by the
Company.

     “Reference Treasury Dealer” means: (a) Deutsche Bank Securities Inc., Morgan Stanley & Co.
Incorporated, UBS Securities LLC or J.P. Morgan Securities LLC and each of their respective
successors; provided that, if any such Reference Treasury Dealer ceases to be a primary U.S.
Government securities dealer in the United States (“Primary Treasury Dealer”), the Company will
substitute another Primary Treasury Dealer; and (b) up to one other Primary Treasury Dealer
selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by an Independent Investment Banker, of the bid
and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to an Independent Investment Banker at 3:00 p.m., New York City
time, on the third business day preceding such redemption date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the Guarantors and the rights of
the Holders of the Securities of each series to be affected under the Indenture at any time by the
Company and the Guarantors and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding of each series to be affected.
The Indenture also contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company and the Guarantors with
certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, place(s) and
rate, and in the coin or currency, herein prescribed.

     This Global Security or portion hereof may not be exchanged for Definitive Securities of this
series except in the limited circumstances provided in the Indenture. The holders of beneficial
interests in this Global Security will not be entitled to receive physical delivery of Definitive
Securities except as described in the Indenture and will not be considered the Holders thereof for
any purpose under the Indenture.

     The Securities are issuable only in registered form without coupons in denominations of U.S.
$2,000 and any integral multiple of $1,000 in excess thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Guarantors, the Trustee and any agent of the Company, the Guarantors or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and none of the Company, the Guarantors, the Trustee nor any such
agent shall be affected by notice to the contrary.

A-1-5

 

     No recourse under or upon any obligation, covenant or agreement of or contained in the
Indenture or of or contained in any Security, or the Guarantees endorsed thereon, or for any claim
based thereon or otherwise in respect thereof, or in any Security or in the Guarantees, or because
of the creation of any indebtedness represented thereby, shall be had against any incorporator,
shareholder, member, officer, manager or director, as such, past, present or future, of the Company
or the Guarantors or of any successor Person, either directly or through the Company or the
Guarantors or any successor Person, whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment, penalty or otherwise; it being expressly understood that
all such liability is hereby expressly waived and released by the acceptance hereof and as a
condition of, and as part of the consideration for, the Securities and the execution of the
Indenture.

     The Indenture provides that the Company and the Guarantors (a) will be discharged from any and
all obligations in respect of the Securities (except for certain obligations described in the
Indenture), or (b) need not comply with certain restrictive covenants of the Indenture, in each
case if the Company or a Guarantor deposits, in trust, with the Trustee money or U.S. Government
Obligations (or a combination thereof) which through the payment of interest thereon and principal
thereof in accordance with their terms will provide money, in an amount sufficient to pay all the
principal of and interest on the Securities, but such money need not be segregated from other funds
except to the extent required by law.

     As more fully provided in the Indenture, no Holder may pursue any remedy under the Indenture
unless the Trustee shall have failed to act after notice of an Event of Default and written request
by Holders of at least 25% in principal amount of a series of the Securities and the offer to the
Trustee of indemnity satisfactory to it; however, such provision does not affect the right to sue
for enforcement of any overdue payment on any Security.

     Except as otherwise defined herein, all terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

     Customary abbreviations may be used in the name of a Holder or any assignee, such as: TEN COM
( = tenants in common), TEN ENT ( = tenants by the entireties), JT TEN ( = joint tenants with right
of survivorship and not as tenants in common), CUST ( = Custodian) and U/G/M/A ( = Uniform Gifts to
Minors Act).

     The Company will furnish to any holder of record of this Security, upon written request,
without charge, a copy of the Indenture. Requests may be made to: Weatherford International Ltd.,
515 Post Oak Blvd., Suite 600, Houston, Texas 77027, Attention: Corporate Secretary.

     This Security shall be governed by and construed in accordance with the laws of the State of
New York without regard to any principles of conflicts of law thereof that would result in the
application of the laws of any other jurisdiction.

A-1-6

 

ASSIGNMENT FORM

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 
(Please Print or Typewrite Name and Address of Assignee)

the within instrument of WEATHERFORD INTERNATIONAL LTD., a Bermuda exempted company, and does
hereby irrevocably constitute and appoint

 

Attorney to transfer said instrument on the books of the within-named Company, with full power of
substitution in the premises.

	 	 	 	 	 

	Please Insert Social Security or
	 	 	 	 
	Other Identifying Number of Assignee:

	 	 
	 	 
	 

	 	 	 	 
	
Dated:
	 	 	 	 
	 

	 	(Signature)	 	 

Signature

Guarantee:

(Participant in a Recognized Signature

Guaranty Medallion Program)

     NOTICE: The signature to this assignment must correspond with the name as written upon the
face of the within instrument in every particular, without alteration or enlargement or any change
whatever.

A-1-7

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Security purchased by the Company pursuant to Section 10.10
or 11.6 of the Indenture, check the appropriate box below:

	 	 	 

	o Section 10.10
	 	o Section 11.6

     If you want to elect to have only part of the Security purchased by the Company pursuant to
Section 10.10 or Section 11.6 of the Indenture, state the amount you elect to have purchased:

$_____________________________

Date:

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	
 	 
	 	(Sign exactly as your name appears on the face of this Security)

Tax Identification No.: 
	 	 	 	 
	 

Signature Guarantee*:

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program
(or other signature guarantor acceptable to the Trustee).

A-1-8

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY

     The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	 	Principal Amount of	 	 
	 	 	Decrease in	 	Amount of Increase	 	this Global Security	 	Signature of
	 	 	Principal	 	in Principal Amount	 	following such	 	authorized signatory
	 	 	Amount of this	 	of this	 	decrease	 	of Trustee or
	Date of Exchange	 	Global Security	 	Global Security	 	(or increase)	 	Depositary
	 
	 	 
	 	 
	 	 
	 	 

A-1-9

 

EXHIBIT A-2

Form of 2040 Note

[FORM OF FACE OF NOTE]

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON
OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR
IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH
LIMITED CIRCUMSTANCES.

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(“DTC”) (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL,
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

A-2-1

 

WEATHERFORD INTERNATIONAL LTD.

a Bermuda exempted company

6.750% Senior Notes due 2040

	 	 	 	 	 
	Rate of Interest	 	Maturity Date	 	Original Issue Date
	6.750%
	 	September 15, 2040
	 	September 23, 2010

			
	 	 	 
	No. ___
	 	U.S. $________________________

CUSIP No. 94707V AB6

     Weatherford International Ltd., a Bermuda exempted company (herein called the “Company”), for
value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
_______________________
United States Dollars on the maturity date shown above, and to pay interest thereon, at the annual
rate of interest shown above, from the original issue date shown above or from the most recent
Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided
for, payable semi-annually on March 15 and September 15 of each year (each, an “Interest Payment
Date”) and at such maturity date, commencing on the first such date after the original issue date
hereof, except that if such original issue date is on or after a Regular Record Date (as defined
below) but before the next Interest Payment Date, interest payments will commence on the second
Interest Payment Date following the original issue date.

     The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture, be paid to the person in whose name this Security is
registered at the close of business on the “Regular Record Date” for any such Interest Payment
Date, which shall be the fourteenth calendar day (whether or not a Business Day) preceding the
applicable Interest Payment Date. Any such interest not so punctually paid or duly provided for,
and any interest payable on such defaulted interest (to the extent lawful), will forthwith cease to
be payable to the Holder on such Regular Record Date and shall be paid to the person in whose name
this Security is registered at the close of business on a special record date for the payment of
such defaulted interest to be fixed by the Company, notice of which shall be given to Holders of
Securities not less than 14 days prior to such special record date. Payment of the principal of and
interest on this Security will be made at the agency of the Company maintained for that purpose in
New York, New York and at any other office or agency maintained by the Company for such purpose, in
United States dollars; provided, however, that, at the option of the Company, payment of interest,
other than interest due on the maturity date shown above, may be made by check mailed to the
address of the person entitled thereto as such address shall appear in the Security Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

(Signature Page Follows)

A-2-2

 

     IN WITNESS WHEREOF, Weatherford International Ltd., a Bermuda exempted company, has caused
this instrument to be executed in its corporate name by the signature of its duly authorized
officer.

	 	 	 	 	 
	 	WEATHERFORD INTERNATIONAL LTD.
a Bermuda exempted company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

     DATED: September 23, 2010

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the 6.750% Senior Notes due 2040 referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
by Deutsche Bank National Trust Company,
as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory      	 
	 	 	 
	 	By:  	 	 
	 	 	Authorized Signatory      	 

A-2-3

 

	 	 	 	 	 

[REVERSE OF NOTE]

WEATHERFORD INTERNATIONAL LTD.

a Bermuda exempted company

6.750% Senior Notes due 2040

     This Security is one of a duly authorized issue of senior securities of Weatherford
International Ltd., a Bermuda exempted company (the “Company”) (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as of October 1, 2003 (the
“Original Indenture”) (the Original Indenture, as supplemented and amended by the Third
Supplemental Indenture thereto, dated as of February 26, 2009, and the Fourth Supplemental
Indenture thereto, dated September 23, 2010, among the Company, Weatherford International Ltd., a
Swiss joint-stock corporation (“Weatherford Switzerland”), Weatherford International, Inc., a
Delaware corporation (together with Weatherford Switzerland, the “Guarantors”), and Deutsche Bank
Trust Company Americas, as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Original Indenture and any supplements and amendments thereto) being collectively
referred to as the “Indenture”), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement, of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. As provided in the Indenture, the Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest, if any, at different rates, may be subject to different redemption
provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may
be subject to different covenants and Events of Default and may otherwise vary as in the Indenture
provided or permitted. This Security is one of the series designated on the face hereof.

     This Security is the general, unsecured, senior obligation of the Company and is guaranteed
pursuant to guarantees (the “Guarantees”) by each of the Guarantors on a joint and several basis.
The Guarantees are the general, unsecured, senior obligation of the Guarantors.

     The Securities are subject to redemption upon not less than 30 nor more than 60 days’ notice
by mail, at any time, as a whole or in part, at the election of the Company at a Redemption Price
equal to the greater of: (a) 100% of the principal amount of Securities then outstanding to be
redeemed, plus accrued and unpaid interest thereon to the redemption date; or (b) the sum of the
present values of the remaining scheduled payments of principal and interest on the Securities then
outstanding to be redeemed (not including any portion of such payments of interest accrued as of
the redemption date), discounted to the redemption date on a semi-annual basis (computed based on a
360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 45 basis
points (0.45%), as calculated by an Independent Investment Banker, plus accrued and unpaid interest
thereon to the redemption date; but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.

     “Adjusted Treasury Rate” means, with respect to any redemption date: (a) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury
Issue (if no maturity is within three months before or after the remaining life, as defined below,
yields for the two published maturities most closely corresponding to the Comparable Treasury Issue
will be determined and the Adjusted Treasury Rate will be interpolated or extrapolated from such
yields on a straight-line basis, rounding to the nearest month); or (b) if such release (or any
successor release) is not published during the week preceding the calculation date or does not
contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption
date. The Adjusted Treasury Rate will be calculated on the third business day preceding the
redemption date.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities to be redeemed that would be used, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Securities.

A-2-4

 

     “Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations
for the redemption date, after excluding the highest and lowest Reference Treasury Dealer
Quotations, or (2) if an Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means Deutsche Bank Securities Inc., Morgan Stanley & Co.
Incorporated, UBS Securities LLC or J.P. Morgan Securities LLC or any of their respective
successors, as designated by the Company, or if all such firms are unwilling or unable to serve as
such, an independent investment and banking institution of national standing appointed by the
Company.

     “Reference Treasury Dealer” means: (a) Deutsche Bank Securities Inc., Morgan Stanley & Co.
Incorporated, UBS Securities LLC or J.P. Morgan Securities LLC and each of their respective
successors; provided that, if any such Reference Treasury Dealer ceases to be a primary U.S.
Government securities dealer in the United States (“Primary Treasury Dealer”), the Company will
substitute another Primary Treasury Dealer; and (b) up to one other Primary Treasury Dealer
selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by an Independent Investment Banker, of the bid
and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to an Independent Investment Banker at 3:00 p.m., New York City
time, on the third business day preceding such redemption date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the Guarantors and the rights of
the Holders of the Securities of each series to be affected under the Indenture at any time by the
Company and the Guarantors and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding of each series to be affected.
The Indenture also contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company and the Guarantors with
certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, place(s) and
rate, and in the coin or currency, herein prescribed.

     This Global Security or portion hereof may not be exchanged for Definitive Securities of this
series except in the limited circumstances provided in the Indenture. The holders of beneficial
interests in this Global Security will not be entitled to receive physical delivery of Definitive
Securities except as described in the Indenture and will not be considered the Holders thereof for
any purpose under the Indenture.

     The Securities are issuable only in registered form without coupons in denominations of U.S.
$2,000 and any integral multiple of $1,000 in excess thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Guarantors, the Trustee and any agent of the Company, the Guarantors or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and none of the Company, the Guarantors, the Trustee nor any such
agent shall be affected by notice to the contrary.

A-2-5

 

     No recourse under or upon any obligation, covenant or agreement of or contained in the
Indenture or of or contained in any Security, or the Guarantees endorsed thereon, or for any claim
based thereon or otherwise in respect thereof, or in any Security or in the Guarantees, or because
of the creation of any indebtedness represented thereby, shall be had against any incorporator,
shareholder, member, officer, manager or director, as such, past, present or future, of the Company
or the Guarantors or of any successor Person, either directly or through the Company or the
Guarantors or any successor Person, whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment, penalty or otherwise; it being expressly understood that
all such liability is hereby expressly waived and released by the acceptance hereof and as a
condition of, and as part of the consideration for, the Securities and the execution of the
Indenture.

     The Indenture provides that the Company and the Guarantors (a) will be discharged from any and
all obligations in respect of the Securities (except for certain obligations described in the
Indenture), or (b) need not comply with certain restrictive covenants of the Indenture, in each
case if the Company or a Guarantor deposits, in trust, with the Trustee money or U.S. Government
Obligations (or a combination thereof) which through the payment of interest thereon and principal
thereof in accordance with their terms will provide money, in an amount sufficient to pay all the
principal of and interest on the Securities, but such money need not be segregated from other funds
except to the extent required by law.

     As more fully provided in the Indenture, no Holder may pursue any remedy under the Indenture
unless the Trustee shall have failed to act after notice of an Event of Default and written request
by Holders of at least 25% in principal amount of a series of the Securities and the offer to the
Trustee of indemnity satisfactory to it; however, such provision does not affect the right to sue
for enforcement of any overdue payment on any Security.

     Except as otherwise defined herein, all terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

     Customary abbreviations may be used in the name of a Holder or any assignee, such as: TEN COM
( = tenants in common), TEN ENT ( = tenants by the entireties), JT TEN ( = joint tenants with right
of survivorship and not as tenants in common), CUST ( = Custodian) and U/G/M/A ( = Uniform Gifts to
Minors Act).

     The Company will furnish to any holder of record of this Security, upon written request,
without charge, a copy of the Indenture. Requests may be made to: Weatherford International Ltd.,
515 Post Oak Blvd., Suite 600, Houston, Texas 77027, Attention: Corporate Secretary.

     This Security shall be governed by and construed in accordance with the laws of the State of
New York without regard to any principles of conflicts of law thereof that would result in the
application of the laws of any other jurisdiction.

A-2-6

 

ASSIGNMENT FORM

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 
(Please Print or Typewrite Name and Address of Assignee)

the within instrument of WEATHERFORD INTERNATIONAL LTD., a Bermuda exempted company, and does
hereby irrevocably constitute and appoint

 

Attorney to transfer said instrument on the books of the within-named Company, with full power of
substitution in the premises.

	 	 	 	 	 

	Please Insert Social Security or
	 	 	 	 
	Other Identifying Number of Assignee:

	 	 
	 	 
	 

	 	 	 	 
	
Dated:
	 	 	 	 
	 

	 	(Signature)	 	 

Signature
Guarantee:

(Participant in a Recognized Signature

Guaranty Medallion Program)

     NOTICE: The signature to this assignment must correspond with the name as written upon the
face of the within instrument in every particular, without alteration or enlargement or any change
whatever.

A-2-7

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Security purchased by the Company pursuant to Section 10.10
or 11.6 of the Indenture, check the appropriate box below:

	 	 	 

	o Section 10.10
	 	o Section 11.6

     If you want to elect to have only part of the Security purchased by the Company pursuant to
Section 10.10 or Section 11.6 of the Indenture, state the amount you elect to have purchased:

$_____________________________

Date:

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	
 	 
	 	 	(Sign exactly as your name appears on the face of this Security)

Tax Identification No.: 

Signature Guarantee*:

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program
(or other signature guarantor acceptable to the Trustee).

A-2-8

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY

     The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	 	Principal Amount of	 	 
	 	 	Decrease in	 	Amount of Increase	 	this Global Security	 	Signature of
	 	 	Principal	 	in Principal Amount	 	following such	 	authorized signatory
	 	 	Amount of this	 	of this	 	decrease	 	of Trustee or
	Date of Exchange	 	Global Security	 	Global Security	 	(or increase)	 	Depositary
	 
	 	 
	 	 
	 	 
	 	 

A-2-9

 

EXHIBIT B

[FORM OF GUARANTEE NOTATION]

     Each Guarantor (which term includes any successor Person in such capacity under the
Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture, the due and punctual payment of the
principal of, and premium, if any, and interest on the Securities of this series and all other
amounts due and payable under the Indenture and such Securities by the Company.

     The obligations of the Guarantors to the Holders of Securities and to the Trustee pursuant to
the Guarantees and the Indenture are expressly set forth in Article Fourteen of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Guarantees.

	 	 	 	 	 
	 	Guarantors:

WEATHERFORD INTERNATIONAL LTD.
a Swiss joint-stock corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WEATHERFORD INTERNATIONAL, INC.
a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-1

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