Document:

exv10w5

Exhibit
10.5

ASSUMPTION AND GENERAL AMENDMENT AGREEMENT

     This Assumption and General Amendment Agreement (this “Agreement”) is made as of
February 25, 2009, by and between Weatherford International Ltd., an exempted company incorporated
with limited liability under the laws of Bermuda (“Weatherford Bermuda”), and Weatherford
International Ltd., a joint stock company registered in Switzerland, canton of Zug
(“Weatherford Switzerland”).

RECITALS

     WHEREAS, the boards of directors of Weatherford Bermuda and Weatherford Switzerland have
previously approved a series of transactions to be effected pursuant to a share exchange agreement
(the “Exchange Agreement”) and by way of a scheme of arrangement in accordance with the
laws of Bermuda and Switzerland, pursuant to which Weatherford Switzerland will become the parent
holding company of Weatherford Bermuda as a result of the remittance of Weatherford Switzerland’s
registered shares (“Registered Shares”) in exchange for Weatherford Bermuda common shares
(“Common Shares”) (such transactions are collectively referred to as the
“Redomestication”);

     WHEREAS, in accordance with Swiss law, the Redomestication will become effective at the time
that the Swiss Register of Commerce registers the capital increase of the Company, as contemplated
in connection with the Redomestication (the “Effective Time”);

     WHEREAS, each of Weatherford Bermuda and Weatherford International, Inc., a Delaware
corporation and wholly-owned indirect subsidiary of Weatherford Bermuda (“Weatherford
Delaware”) (i) maintains and sponsors those certain equity compensation-related plans, and
certain other plans, agreements, awards and arrangements listed on Exhibit A hereto
(collectively, the “Assumed Stock Plans”), providing for the grant or award to its
directors, officers and employees and other persons of (a) options, restricted shares or other
rights to purchase or receive Common Shares or (b) the right to receive benefits or other amounts
by reference to Common Shares (individually, an “Assumed Stock Award” and collectively, the
“Assumed Stock Awards”), and (ii) maintains and sponsors those certain equity
compensation-related plans, and certain other plans, agreements, awards and arrangements listed on
Exhibit B hereto (collectively, the “Other Stock Plans”), providing for the grant
or award to its directors, officers and employees and other persons of (a) options, restricted
shares or other rights to purchase or receive Common Shares or (b) the right to receive benefits or
other amounts by reference to Common Shares (individually, an “Other Stock Award” and
collectively, the “Other Stock Awards”);

     WHEREAS, Weatherford Bermuda has previously entered into those certain employment agreements
listed on Exhibit C hereto (collectively, the “Assumed Employment Agreements”);

     WHEREAS, Weatherford Delaware has previously entered into those certain employment agreements
listed on Exhibit D hereto (collectively, the “Other Employment Agreements”); and

 

 

     WHEREAS, in connection with the Redomestication and pursuant to the Exchange Agreement,
Weatherford Switzerland desires (i) to assume and adopt the Assumed Stock Plans and the Assumed
Stock Awards, and to issue or cause to be issued Registered Shares (from Weatherford Switzerland or
through one of its subsidiaries) in lieu of Common Shares being issued in connection with such
Assumed Stock Plans and Assumed Stock Awards, (ii) to assume the obligations of Weatherford Bermuda
to issue or cause to be issued Registered Shares (from Weatherford Switzerland or through one of
its subsidiaries) in lieu of Common Shares being issued in connection with the Other Stock Plans
and the related Other Stock Awards, but not assume the Other Stock Plans or Other Stock Awards,
(iii) to assume and adopt the Assumed Employment Agreements, and (iv) the Other Employment
Agreements to be amended such that references to Weatherford Bermuda are replaced with references
to Weatherford Switzerland.

     NOW, THEREFORE, in consideration of the foregoing and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, at and as of the Effective Time:

1. Pursuant to the terms of this Agreement and the Exchange Agreement, Weatherford Bermuda hereby
assigns to Weatherford Switzerland, and Weatherford Switzerland hereby accepts from Weatherford
Bermuda and hereby assumes, the Assumed Stock Plans and the related Assumed Stock Awards and the
rights and obligations of Weatherford Bermuda under the Assumed Stock Plans and Assumed Stock
Awards. As a result of such assignment and assumption, Weatherford Switzerland will be the sponsor
of the Assumed Stock Plans and Registered Shares will be issued under the Assumed Stock Plans in
lieu of Common Shares being issued thereunder.

2. Pursuant to the terms of this Agreement and the Exchange Agreement, Weatherford Bermuda hereby
assigns to Weatherford Switzerland, and Weatherford Switzerland hereby accepts from Weatherford
Bermuda and hereby assumes, the obligations to issue or cause to be issued, Registered Shares in
connection with the Other Stock Plans and related Other Stock Awards. As a result of such
assignment and assumption, Weatherford Switzerland will issue or cause to be issued Registered
Shares (from Weatherford Switzerland or through one of its subsidiaries) in lieu of Common Shares
being issued in connection with such Other Stock Plans and Other Stock Awards.

3. Pursuant to the terms of this Agreement and the Exchange Agreement, Weatherford Bermuda hereby
assigns to Weatherford Switzerland, and Weatherford Switzerland hereby accepts and assumes from
Weatherford Bermuda, the Assumed Employment Agreements, including the rights and obligations of
Weatherford Bermuda thereunder. The registered address of Weatherford Switzerland for purposes of
the Assumed Employment Agreements is Alpenstrasse 15, 6300 Zug, Switzerland.

4. To the extent any Assumed Stock Plan, Assumed Stock Award, Other Stock Plan or Other Stock Award
(each, a “Benefit Document”, and collectively, the “Benefit Documents”) provides
for the issuance, acquisition, holding or purchase of, or otherwise relates to or references,
Common Shares, then, pursuant to the terms hereof and thereof, such Benefit

 

 

Document is hereby
amended to provide for the issuance, acquisition, purchase or holding of, or otherwise relate to or
reference, Registered Shares (or benefits or other amounts determined in accordance with the
Benefit Documents).

5. All references in the Assumed Stock Plans and Assumed Stock Awards to Weatherford Bermuda or its
predecessors are hereby amended to be references to Weatherford Switzerland. Only with respect to
the obligations to issue Common Shares, all references in the Other Stock Plans and Other Stock
Awards to Weatherford Bermuda or its predecessors are hereby amended to be references to
Weatherford Switzerland. All references in the Assumed Employment Agreements and the Other
Employment Agreements to Weatherford Bermuda or its predecessors are hereby amended to be
references to Weatherford Switzerland; no other changes or amendments are hereby made to the Other
Employment Agreements.

6. All outstanding Assumed Stock Awards and Other Stock Awards or any other benefits available
which are based on Common Shares and which have been granted under the Assumed Stock Plans or Other
Stock Plans (including, as applicable, any Common Shares exchanged in connection with the
Redomestication) shall remain outstanding pursuant to the terms hereof and thereof.

7. Each Assumed Stock Award and each Other Stock Award shall, pursuant to the terms hereof and
thereof, be exercisable, issuable, held, available or vest upon the same terms and conditions as
under the applicable Benefit Document, except that upon the exercise, issuance, holding,
availability or vesting of such Assumed Stock Awards or Other Stock Awards, as applicable,
Registered Shares are hereby issuable or available, or benefits or other amounts determined, in
lieu of Common Shares.

8. Each Assumed Stock Award and Other Stock Award that is a stock option (i) is hereby assumed by
Weatherford Switzerland, or (ii) the obligations thereunder are hereby assumed by Weatherford
Switzerland, as applicable, in such manner that Weatherford Switzerland would be a corporation
“assuming a stock option in a transaction to which section 424(a) applies” within the meaning of
Section 424 of the Internal Revenue Code of 1986, as amended (the “Code”), were Section 424
of the Code applicable to such Assumed Stock Award or Other Stock Award, with regard to the
requirements of Treasury Regulation Section 1.424-1(a)(5)(iii) for options that are intended to
qualify under Section 422 of the Code, and with regard to the requirements of Treasury Regulation
Section 1.409A-1(b)(5)(v)(D) for other options.

9. The parties hereto acknowledge that the benefit and other plans (and the obligations to issue
Common Shares provided therein) of Weatherford Bermuda, Weatherford Delaware or any of their
affiliates that are not listed on Exhibit A, Exhibit B, or Exhibit C are
not assigned to or assumed or otherwise adopted by Weatherford Switzerland as provided hereby. For
the avoidance of doubt, the Other Employment Agreements are not being assumed by Weatherford
Switzerland.

 

 

10. Subject to the terms of this Agreement, as amended hereby, each Benefit Document is
specifically ratified and reaffirmed by Weatherford Switzerland.

11. This Agreement will be effective immediately prior to the Effective Time subject to effective
completion of the Redomestication by the Effective Time.

(Remainder of page intentionally blank)

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement, which may be executed in
multiple counterparts, but when taken together make one and the same instrument, as of the date
first set forth above.

WEATHERFORD INTERNATIONAL LTD.

a Bermuda exempted company

	 	 	 
	By:
	 	/s/ Burt M. Martin
	 

	 	 
	Name:
	 	Burt M. Martin
	 

	 	 
	Title:
	 	Senior Vice President
	 

	 	 

WEATHERFORD INTERNATIONAL LTD.

a joint stock company registered in Switzerland

	 	 	 
	By:
	 	/s/ Burt M. Martin
	 

	 	 
	Name:
	 	Burt M. Martin
	 

	 	 
	Title:
	 	Director
	 

	 	 

Solely for purposes of the last sentence of Section 5, Weatherford International, Inc. also
executes this Agreement.

WEATHERFORD INTERNATIONAL, INC.

a Delaware corporation

	 	 	 
	By:
	 	/s/ Burt M. Martin
	 

	 	 
	Name:
	 	Burt M. Martin
	 

	 	 
	Title:
	 	Senior Vice President
	 

	 	 

[Signature page to Stock Plan Assumption and General Amendment Agreement]

 

 

EXHIBIT A

Assumed Stock Plans

1. Weatherford International Ltd. Non-Employee Director Stock Option Agreements

2. Weatherford International Ltd. 2006 Omnibus Incentive Plan

3. Weatherford International Ltd. Restricted Share Plan

4. Weatherford International, Inc. 1998 Employee Stock Option Plan

 

 

EXHIBIT B

Other Stock Plans

1. Weatherford International, Inc. Executive Deferred Compensation Stock Ownership Plan

2. Weatherford International, Inc. Foreign Executive Deferred Compensation Stock Plan

3. Weatherford International Ltd. Deferred Compensation Plan for Non-Employee Directors

 

 

EXHIBIT C

Weatherford International Ltd.

Assumed Employment Agreements

1. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Jessica Abarca

2. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Andrew P. Becnel

3. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and M. David Colley

4. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Bernard J. Duroc-Danner

5. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Stuart E. Ferguson

6. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Burt M. Martin

7. Amended and Restated Employment Agreement dated December 31, 2008, between Weatherford
International Ltd. and Keith R. Morley

8. Amended and Restated Employment Agreement effective as of December 31, 2008, between
Weatherford International Ltd. and James M. Hudgins

9. Amended and Restated Employment Agreement effective as of December 31, 2008, between
Weatherford International Ltd. and Carel W. Hoyer

 

 

EXHIBIT D

Weatherford International, Inc.

Other Employment Agreements

1. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Jessica Abarca

2. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Andrew P. Becnel

3. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and M. David Colley

4. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Bernard J. Duroc-Danner

5. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Stuart E. Ferguson

6. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Burt M. Martin

7. Employment Agreement effective as of January 1, 2009, between Weatherford International, Inc.
and Keith R. Morley

8.
Employment Agreement effective as of February 9, 2009, between Weatherford International, Inc.
and James M. Hudgins

9. Employment Agreement effective as of February 9, 2009, between Weatherford International, Inc.
and Carel W. Hoyerexv10w6

Exhibit 10.6

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT is made on the [___], 2009, between Weatherford
International Ltd., a corporation incorporated under the laws of Switzerland with its registered
address at Alpenstrasse 15, in 6304 Zug, Switzerland (the “Company”); and [___]
(“Indemnitee”).

     WHEREAS Indemnitee is a director and/or an officer of the Company;

     WHEREAS highly skilled and competent persons are becoming more reluctant to serve public
companies as directors or officers unless they are provided with adequate protection through
insurance and indemnification against inordinate risks of claims and actions against them arising
out of their service to and activities on behalf of such companies;

     WHEREAS uncertainties relating to indemnification increase the difficulty of attracting and
retaining such persons;

     WHEREAS the Board has determined that an inability to attract and retain such persons is
detrimental to the best interests of the Company and that the Company should act to assure such
persons that there will be increased certainty of such protection in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify Indemnitee to the fullest extent permitted by Swiss law so that Indemnitee will
serve or continue to serve the Company free from undue concern that Indemnitee will not be so
indemnified; and

     WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service
for or on behalf of the Company on the condition that Indemnitee be so indemnified.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

1. INTERPRETATION

     1.1 In this Agreement unless the context otherwise requires, the following words and
expressions shall have the following meanings:

     “Agreement” means this Indemnification Agreement;

     “Board” means the board of directors of the Company;

     “Business Day” means any day on which banks in Switzerland are open for business;

     “Corporate Status” means the status of a person who is or was a director, officer,
employee, agent, or fiduciary of the Company or any other Group Company, or is or was serving at
the request of the Company as a director, officer, employee, agent or fiduciary of any other
company, corporation, partnership, limited liability company, joint venture, trust, employee
benefit plan or other entity or enterprise;

 

 

     “Disinterested Director” means a director of the Company who is not or was not a party
to a Proceeding in respect of which indemnification is sought by Indemnitee;

     “Group Companies” means the Company and each subsidiary of the Company (wherever
incorporated or organized);

     “Independent Counsel” means a law firm or a member of a law firm that neither is
presently nor in the past five years has been retained to represent: (i) the Company or Indemnitee
in any matter material to either such party, or (ii) any other party to the Proceeding giving rise
to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or Indemnitee
in an action to determine Indemnitee’s right to indemnification under this Agreement;

     “Parties” means the parties to this Agreement collectively, and “Party” means
any one of them; and

     “Proceeding” means any action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding whether civil, criminal,
administrative or investigative and whether formal or informal;

     1.2 In this Agreement unless the context otherwise requires:

          1.2.1 references to statutory provisions shall be construed as references to those provisions
as amended or re-enacted or as their application is modified by other provisions from time to time
and shall include references to any provisions of which they are re-enactments (whether with or
without modification);

          1.2.2 references to clauses and schedules are references to clauses hereof and schedules
hereto; references to sub-clauses or paragraphs are, unless otherwise stated, references to
sub-clauses of the clause or paragraphs of the schedule in which the reference appears;

          1.2.3 references to the singular shall include the plural and vice versa and references to the
masculine shall include the feminine and/or neuter and vice versa; and

          1.2.4 references to persons shall include companies, partnerships, associations and bodies of
persons, whether incorporated or unincorporated.

2. AGREEMENT TO SERVE

     Indemnitee agrees to serve as a director and/or an officer of the Company. This Agreement does
not create or otherwise establish any right on the part of Indemnitee to be and continue to be
elected or appointed a director and/or an officer of the Company or any other
Group Company and does not create an employment contract between the Company and Indemnitee.

 

 

3. INDEMNITY OF DIRECTOR/OFFICER

     3.1 Subject to clause 10, the Company shall indemnify Indemnitee if Indemnitee is a party or
is threatened to be made a party to any threatened, pending or completed Proceeding, including a
Proceeding brought by or in the right of the Company, by reason of the fact that Indemnitee is or
was a director, officer, employee, agent, or fiduciary of the Company or is or was serving at the
request of the Company as a director, officer, employee, agent, or fiduciary of any other company,
corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or
other entity or enterprise or by reason of anything done or not done by Indemnitee in any such
capacity. Subject to clause 10, pursuant to this sub-clause 3.1 Indemnitee shall be indemnified
against expenses (including attorneys’ fees and disbursements), judgments, penalties, fines and
amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with such
Proceeding (including, but not limited to, the investigation, defense, settlement or appeal
thereof).

     3.2 Notwithstanding any other provision of this Agreement other than clause 10, Indemnitee
shall be indemnified against all expenses (including attorneys’ fees and disbursements) actually
and reasonably incurred by Indemnitee or on Indemnitee’s behalf in defending any Proceedings
referred to in clause 3.1 in which judgment is given in his favour, in which he is acquitted, or in
respect of which relief is granted to him.

Subject to clause 10, the Company shall indemnify Indemnitee for such portion of the expenses
(including attorneys’ fees), witness fees, damages, judgments, fines and amounts paid in settlement
and any other amounts that Indemnitee becomes legally obligated to pay in connection with any
Proceeding referred to in clause 3.1 in respect of which Indemnitee is entitled to indemnification
hereunder, even if Indemnitee is not entitled to indemnification hereunder for the total amount
thereof.

4. INDEMNIFICATION FOR EXPENSES OF A WITNESS

     Subject to clause 10, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate
Status, a witness in any proceeding, Indemnitee shall be indemnified by the Company against all
expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
therewith.

5. DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION

     5.1 Indemnitee shall request indemnification pursuant to this Agreement by notice in writing
to the secretary of the Company. The secretary shall, promptly upon receipt of Indemnitee’s request
for indemnification, advise in writing the Board or such other person or persons empowered to make
the determination as provided in sub-clause 5.2 that Indemnitee has made such request for
indemnification. Subject to clause 10, upon making such request for indemnification, Indemnitee
shall be presumed to be entitled to indemnification hereunder and
the Company shall have the burden of proof in the making of any determination contrary to such
presumption.

 

 

     5.2 Upon written request by Indemnitee for indemnification pursuant to sub-clause 3.1, the
entitlement of Indemnitee to indemnification pursuant to the terms of this Agreement shall be
determined by the following person or persons who shall be empowered to make such determination:

          5.2.1 the Board, by a majority vote of the Disinterested Directors; or

          5.2.2 if such vote is not obtainable or, even if obtainable, if such Disinterested Directors
so direct by majority vote, by Independent Counsel in a written opinion to the Board, a copy of
which shall be delivered to Indemnitee; or

          5.2.3 by a majority vote of the shareholders.

     5.3 For purposes of sub-clause 5.2, Independent Counsel shall be selected by the Board and
approved by Indemnitee. Upon failure of the Board to so select such Independent Counsel or upon
failure of Indemnitee to so approve, either the Board or Indemnitee may request the International
Chamber of Commerce (the “ICC”) to appoint an Independent Counsel in accordance with the
provisions regarding the appointment of experts contained in the ICC’s Rules for Expertise. Such
determination of entitlement to indemnification shall be made not later than 60 days after receipt
by the Company of a written request for indemnification. Such request shall include documentation
or information which is necessary for such determination and which is reasonably available to
Indemnitee. Subject to clause 10, any expenses (including attorneys’ fees) incurred by Indemnitee
in connection with Indemnitee’s request for indemnification hereunder shall be borne by the Company
irrespective of the outcome of the determination of Indemnitee’s entitlement to indemnification.
If the person or persons making such determination shall determine that Indemnitee is entitled to
indemnification as to part (but not all) of the application for indemnification, such persons may
reasonably prorate such partial indemnification among such claims, issues or matters in respect of
which indemnification is requested.

6. ADVANCEMENT OF EXPENSES

     All reasonable expenses incurred by Indemnitee (including attorneys’ fees, retainers and
advances of disbursements required of Indemnitee) shall be paid by the Company in advance of the
final disposition of any Proceeding at the request of Indemnitee as promptly as possible, and in
any event within twenty days after the receipt by the Company of a statement or statements from
Indemnitee requesting such advance or advances from time to time. Indemnitee’s entitlement to such
expenses shall include those incurred in connection with any Proceeding by Indemnitee seeking an
adjudication or award in arbitration pursuant to this Agreement. Such statement or statements
shall reasonably evidence the expenses incurred by Indemnitee in connection therewith and shall
include or be accompanied by an undertaking by or on behalf of Indemnitee to repay such amount if
it is ultimately determined that Indemnitee is not entitled to be indemnified against such expenses
by the Company as provided by this Agreement or otherwise. Subject to clause 10, the Company shall
have the burden of proof in any
determination under this clause 6. No amounts advanced hereunder shall be deemed an extension of
credit by the Company to Indemnitee.

 

 

7. REMEDIES OF INDEMNITEE IN CASES OF DETERMINATION NOT TO INDEMNIFY OR TO ADVANCE EXPENSES

     7.1 In the event that: (a) a determination is made that Indemnitee is not entitled to
indemnification hereunder; (b) payment has not been timely made following a determination of
entitlement to indemnification pursuant to clause 5; or (c) expenses are not advanced pursuant to
clause 6, Indemnitee shall be entitled to apply to a court of competent jurisdiction at the place
of incorporation of the Company for a determination of Indemnitee’s entitlement to such
indemnification or advance.

     7.2 Alternatively to sub-clause 7.1, Indemnitee, at Indemnitee’s option, may seek an award in
arbitration to be conducted by an arbitral tribunal administered by the Swiss Chambers of Commerce
in accordance with the Swiss Rules of International Arbitration in force on the date when the
notice of arbitration is submitted in accordance with the rules set out in this Agreement. The seat
of the arbitration shall be at the place of incorporation of the Company. The arbitral proceedings
shall be conducted in the English language. The Company shall not oppose Indemnitee’s right to
seek any such adjudication or award in arbitration or any other claim.

     7.3 Subject to clause 10, if a determination is made pursuant to the terms of clause 5 that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination and is
precluded from asserting that such determination has not been made or that the procedure by which
such determination was made is not valid, binding and enforceable. If the court or arbitral
tribunal shall determine that Indemnitee is entitled to any indemnification hereunder, the Company
shall pay all reasonable expenses (including attorneys’ fees and disbursements) actually incurred
by Indemnitee in connection with such adjudication or award in arbitration (including, but not
limited to, any appellate proceedings).

8. OTHER RIGHTS TO INDEMNIFICATION

     The indemnification and advancement of expenses (including attorneys’ fees) provided by this
Agreement shall not be deemed exclusive of any other right to which Indemnitee may now or in the
future be entitled under any provision of the Company’s articles of association or organizational
regulations or any agreement, vote of shareholders, the Board or Disinterested Directors, provision
of law, or otherwise, provided, however, that where the Company may indemnify
Indemnitee pursuant to either this Agreement or the articles of association or organizational
regulations of the Company, the Company may indemnify Indemnitee under either this Agreement or the
articles of association or organizational regulations of the Company but Indemnitee shall, in no
case, be indemnified by the Company in

 

 

respect of any expense, liability or cost of any type for which payment is or has been actually
made to Indemnitee under any insurance policy, indemnity clause, articles of association or
organizational regulations of the Company or agreement, except in respect of any excess beyond such
payment. This Agreement shall not supersede any indemnification or
other agreements previously entered into between Indemnitee and
Weatherford International Ltd., a Bermuda company, and/or Weatherford
International, Inc., a Delaware corporation, it being the intention
of the Parties that Indemnitee shall be entitled to the
indemnification provided under any or all agreements to the fullest
extent permitted by Swiss or other applicable law.

9. ATTORNEYS’ FEES AND OTHER EXPENSES TO ENFORCE AGREEMENT

     In the event that Indemnitee is subject to or intervenes in any Proceeding in which the
validity or enforceability of this Agreement is at issue or seeks an adjudication or award in
arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this
Agreement, Indemnitee, if Indemnitee prevails in whole or in part in such action, shall be entitled
to recover from the Company and shall be indemnified by the Company against, any actual expenses
for attorneys’ fees and disbursements reasonably incurred by Indemnitee, provided that in bringing
such action, Indemnitee acted in good faith.

10. LIMITATION OF INDEMNIFICATION

     10.1 Notwithstanding any other terms of this Agreement, nothing herein shall indemnify
Indemnitee against, or exempt Indemnitee from, any liability in respect of Indemnitee’s gross
negligence and willful intent pursuant to Art. 100 § 1 of the Swiss Code of Obligations; provided
however, that to the extent Swiss applicable law changes after the date of this Agreement so that
the Company may, under such law, at the applicable time, indemnify Indemnitee to an extent greater
than provided in this clause 10 (as a result of the restrictions contained in this clause 10), the
Company shall indemnify Indemnitee without regard to the restrictions contained in this clause 10
to the fullest extent permitted under applicable law at such time.

     10.2 In addition, notwithstanding any other terms of this Agreement, nothing herein shall
indemnify Indemnitee against, or exempt Indemnitee from, any liability in respect of Indemnitee’s
fraud and dishonesty.

11. LIABILITY INSURANCE

     To the extent the Company maintains an insurance policy or policies providing directors’ and
officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in
accordance with its or their terms, to the maximum extent of the coverage available for any Company
director or officer and to the fullest extent permitted by Swiss law.

12. DURATION OF AGREEMENT

     This Agreement shall apply with respect to Indemnitee’s occupation of any of the position(s)
described in sub-clause 3.1 of this Agreement prior to the date of this Agreement and with respect
to all periods of such service after the date of this Agreement, even though Indemnitee may have
ceased to occupy such positions(s).

 

 

13. NOTICE OF PROCEEDINGS BY INDEMNITEE

     13.1 Indemnitee agrees promptly to notify the Company in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information or other document relating to any
Proceeding which may be subject to indemnification hereunder, provided, however, that the failure
to so notify the Company will not relieve the Company from any liability it may have to Indemnitee
except to the extent that such failure materially prejudices the Company’s ability to defend such
claim. With respect to any such Proceeding as to which Indemnitee notifies the Company of the
commencement thereof:

          13.1.1 the Company will be entitled to participate therein at its own expense; and

          13.1.2 except as otherwise provided below, to the extent that it may wish, the Company jointly
with any other indemnifying party similarly notified will be entitled to assume the defense
thereof, with counsel reasonably satisfactory to Indemnitee. After notice from the Company to
Indemnitee of its election so to assume the defense thereof, the Company will not be liable to
Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee
in connection with the defense thereof other than reasonable costs of investigation or as otherwise
provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such
Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its
assumption of the defense thereof shall be at the expense of Indemnitee and not subject to
indemnification hereunder unless: (a) the employment of counsel by Indemnitee has been authorized
by the Company; (b) in the reasonable opinion of counsel to Indemnitee there is or may be a
conflict of interest between the Company and Indemnitee in the conduct of the defense of such
Proceeding; or (c) the Company shall not in fact have employed counsel to assume the defense of
such action, in each of which cases, subject to clause 10, the fees and expenses of counsel shall
be at the expense of the Company.

     13.2 Neither the Company nor Indemnitee shall settle any claim without the prior written
consent of the other (which shall not be unreasonably withheld).

14. NOTICES

     Any notice required to be given hereunder shall be in writing in the English language and
shall be served by sending the same by prepaid recorded post, facsimile or by delivering the same
by hand to the address of the Party or Parties in question as set out below (or such other address
as such Party or Parties shall notify the other Parties of in accordance with this clause). Any
notice sent by post as provided in this clause shall be deemed to have been served five Business
Days after dispatch and any notice sent by facsimile as provided in this clause shall be deemed to
have been served at the time of dispatch and in proving the service of the same it will be
sufficient to prove in the case of a letter that such letter was properly stamped, addressed and
placed in the post; and in the case of a facsimile that such facsimile was duly dispatched to a
current facsimile number of the addressee.

 

 

Company

Weatherford International Ltd.

Alpenstrasse 15

6304 Zug

Switzerland

Attn: Secretary

Indemnitee

[                    ]

15. MISCELLANEOUS

     15.1 Notwithstanding the expiration or termination of this Agreement howsoever arising, such
expiration or termination shall not operate to affect such of the provisions hereof as are
expressed or intended to remain in full force and effect.

     15.2 If any of the clauses, conditions, covenants or restrictions of this Agreement or any
deed or document emanating from it shall be found to be void but would be valid if some part
thereof were deleted or modified, then such clause, condition, covenant or restriction shall apply
with such deletion or modification as may be necessary to make it valid and effective so as to give
effect as nearly as possible to the intent manifested by such clause, condition, covenant or
restriction.

     15.3 This Agreement shall be binding upon the Company and its successors and assigns
(including any transferee of all or substantially all of its assets and any successor or resulting
company by merger, amalgamation or operation of law) and shall inure to the benefit of Indemnitee
and Indemnitee’s spouse, assigns, heirs, estate, devises, executors, administrators or other legal
representatives.

     15.4 This Agreement (together with any documents referred to herein) constitutes the whole
agreement between the Parties relating to its subject matter and supersedes any prior
indemnification arrangement between the Company (or its predecessor) and Indemnitee (except as
specifically set forth in clause 8).

     15.5 No provision in this Agreement may be amended unless such amendment is agreed to in
writing, signed by Indemnitee and by a duly authorized officer of the Company. No waiver by either
Party of any breach by the other Party of any condition or provision of this Agreement to be
performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or
provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by
Indemnitee or a duly authorized officer of the Company, as the case may be.

     15.6 The headings in this Agreement are inserted for convenience only and shall not affect the
construction of this Agreement.

 

 

     15.7 This Agreement may be executed in counterparts each of which when executed and delivered
shall constitute an original but all such counterparts together shall constitute one and the same
instrument.

     15.8 The terms and conditions of this Agreement and the rights of the parties hereunder shall
be governed by and construed in all respects in accordance with the laws of Switzerland. The
Parties to this Agreement hereby irrevocably agree that the court at the place of incorporation of
the Company shall have non-exclusive jurisdiction in respect of any dispute, suit, action,
arbitration or proceedings (“Agreement Proceedings”) which may arise out of or in
connection with this Agreement and waive any objection to Agreement Proceedings in such court on
the grounds of venue or on the basis that the Agreement Proceedings have been brought in an
inconvenient forum.

     15.9 All payments made by the Company to Indemnitee hereunder shall be deemed to have been
made in the ordinary course of business of the Company, and shall not be deemed to be extraordinary
payments.

(Remainder of page intentionally left blank)

 

 

     IN WITNESS WHEREOF, the undersigned, intending to be bound hereby, have duly executed this
Agreement as of the date first written above.

SIGNED by and on behalf of:

THE COMPANY

	 	 	 
	By:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Title:
	 	 
	 

	 	 

SIGNED by:

INDEMNITEE

	 
	 

	[NAME]

[Signature page to Indemnification Agreement]

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