Sale and Purchase Agreement (2009)Full Document 

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SALE AND PURCHASE AGREEMENT
among
NOVY INVESTMENTS LIMITED
as SELLER,
WEATHERFORD INTERNATIONAL LTD.
as PURCHASER,
and
WEATHERFORD INTERNATIONAL LTD. (BERMUDA)
Dated as of May 29, 2009

 


 

         
ARTICLE I

DEFINITIONS
 
       
Section 1.01. Definitions
    1  
Section 1.02. Construction
    17  
 
       
ARTICLE II

SALE AND PURCHASE OF SHARES AND INTERESTS
 
       
Section 2.01. Sale and Purchase of Shares and Interests
    18  
Section 2.02. Consideration; Purchase Price Allocation
    18  
Section 2.03. Contribution; Proceedings at Contribution
    18  
Section 2.04. Delivery of Consideration Shares; Completion
    23  
 
       
ARTICLE III

WARRANTIES OF SELLER
 
       
Section 3.01. Organisation and Related Matters
    24  
Section 3.02. Authorisation
    25  
Section 3.03. No Conflict
    26  
Section 3.04. Title to the Shares and/or Interests; Restructuring
    27  
Section 3.05. Disclosure
    28  
Section 3.06. Financial Statements
    28  
Section 3.07. Book and Records; Financial Matters
    29  
Section 3.08. No Undisclosed Liabilities
    29  
Section 3.09. Absence of Certain Changes and Events
    30  
Section 3.10. Assets
    31  
Section 3.11. Real Property
    31  
Section 3.12. Intellectual Property
    32  
Section 3.13. Contracts
    32  
Section 3.14. Tax Matters
    33  
Section 3.15. Employment and Labour Matters
    35  
Section 3.16. Compliance with Law
    36  
Section 3.17. Legal Proceedings
    38  

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Section 3.18. Investment in Consideration Shares
    39  
Section 3.19. No Brokers or Finders
    39  
 
       
ARTICLE IV

WARRANTIES OF PURCHASER AND WEATHERFORD BERMUDA
 
       
Section 4.01. Organisation and Related Matters
    40  
Section 4.02. Authorisations
    40  
Section 4.03. No Conflict
    40  
Section 4.04. Financing; Legal Proceedings
    41  
Section 4.05. Access to Information
    41  
Section 4.06. Capitalisation
    41  
Section 4.07. SEC Filings; Financial Statements
    42  
Section 4.08. Absence of Certain Changes or Events
    42  
Section 4.09. Compliance with Laws
    42  
Section 4.10. Registration
    43  
Section 4.11. No Brokers or Finders
    44  
 
       
ARTICLE V

COVENANTS
 
       
Section 5.01. Conduct of the Business
    44  
Section 5.02. Permits and Approvals
    45  
Section 5.03. Notice of Certain Events
    46  
Section 5.04. Press Releases
    47  
Section 5.05. Confidentiality
    47  
Section 5.06. Cancellation of Related Party Contracts
    48  
Section 5.07. Further Assurances
    49  
Section 5.08. Rescission Order Compliance
    49  
Section 5.09. Intellectual Property Transition Use
    51  
Section 5.10. No Derivative Trading
    51  
Section 5.11. Rights of First Refusal
    51  
Section 5.12. Non-Solicitation
    51  
Section 5.13. Releases
    52  

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Section 5.14. Tax Conduct
    52  
Section 5.15. Value Guarantee Mechanism
    53  
Section 5.16. Permitted Dividends
    55  
Section 5.17. Provision of Services
    55  
Section 5.18. VDR Matters
    56  
Section 5.19. Accounting Access
    56  
Section 5.20. The Restructuring
    56  
Section 5.21. No Transfers
    57  
Section 5.22. Freely Available Reserves
    57  
Section 5.23. Guarantee by Weatherford Bermuda
    58  
Section 5.24. Anticorruption Warranty
    60  
Section 5.25. Assignment of Certain Accounts Receivable
    60  
 
       
ARTICLE VI

CONDITIONS PRECEDENT TO CONTRIBUTION
 
       
Section 6.01. Conditions to Obligations of Seller
    61  
Section 6.02. Conditions to Obligations of Purchaser
    62  
 
       
ARTICLE VII

COMPLETION ACCOUNTING
 
       
Section 7.01. Proposed Completion Statement
    64  
Section 7.02. Pre-Completion Count of OFS Inventory
    64  
Section 7.03. Completion Statement Review
    65  
Section 7.04. Dispute of the Proposed Completion Statement
    65  
Section 7.05. Final Completion Statement
    66  
Section 7.06. Final Adjustment Calculation
    66  
Section 7.07. No Further Claims
    67  
 
       
ARTICLE VIII

INDEMNIFICATION; LIMITATION OF LIABILITY
 
       
Section 8.01. Indemnification
    67  
Section 8.02. Liability Qualifications and Exclusions
    68  

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Section 8.03. Procedure for Making Claims
    70  
Section 8.04. Limitation on Damages and Remedies
    72  
 
       
ARTICLE IX

TAX MATTERS
 
       
Section 9.01. Tax Deed
    73  
Section 9.02. Tax Disclosures
    73  
Section 9.03. Straddle Period Taxes
    73  
Section 9.04. Transfer Taxes and Registration
    73  
 
       
ARTICLE X

TERMINATION
 
       
Section 10.01. Termination
    73  
Section 10.02. Deadline for Delivery of Consideration Shares; Indemnification
    74  
Section 10.03. Effect of Termination
    74  
 
       
ARTICLE XI

GENERAL PROVISIONS
 
       
Section 11.01. Notices
    75  
Section 11.02. Supersedence
    75  
Section 11.03. Severability
    75  
Section 11.04. Entire Agreement; Assignment
    75  
Section 11.05. Parties in Interest; No Third Party Rights
    76  
Section 11.06. Expenses
    76  
Section 11.07. Amendment
    76  
Section 11.08. Waiver
    76  
Section 11.09. Governing Law; Arbitration; Specific Performance
    76  
Section 11.10. Withholding and Grossing-up
    78  
Section 11.11. Headings
    79  
Section 11.12. Execution
    79  
Section 11.13. No Double Recovery
    79  
 iv

 


 

     
SCHEDULE 1 SCHEDULE OF ASSETS
  Schedule 1-1
SCHEDULE 1 SCHEDULE OF ASSETS PART A CJSC “NvBN”
  Schedule 1A-1
SCHEDULE 1 SCHEDULE OF ASSETS PART B CJSC “OBN”
  Schedule 1B-1
SCHEDULE 1 SCHEDULE OF ASSETS PART C LLC “UKRS”
  Schedule 1C-1
SCHEDULE 1 SCHEDULE OF ASSETS PART D LLC “STU”
  Schedule 1D-1
SCHEDULE 1 SCHEDULE OF ASSETS PART E LLC “OBSK”
  Schedule 1E-1
SCHEDULE 1 SCHEDULE OF ASSETS PART F LLC “ChNS”
  Schedule 1F-1
SCHEDULE 1 SCHEDULE OF ASSETS PART G LLC “KUIK” (Orenburg)
  Schedule 1G-1
SCHEDULE 1 SCHEDULE OF ASSETS PART H LLC “KUIK” (Nyagan)
  Schedule 1H-1
SCHEDULE 1 SCHEDULE OF ASSETS PART I LLC “KUIK” (Nizhnevartovsk)-
  Schedule 1I-1
SCHEDULE 1 SCHEDULE OF ASSETS PART J LLC “NPRS-1”
  Schedule 1J-1
SCHEDULE 2 PURCHASE PRICE ALLOCATION
  Schedule 2-1
SCHEDULE 3 RESIGNATIONS OF SOLE EXECUTIVE BODIES
  Schedule 3-1
SCHEDULE 4 RIG INFORMATION
  Schedule 4-1

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