Document:

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                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT is dated effective as of the 1st day of June,
2003, by and between Prab, Inc., a Michigan corporation (the "Corporation"), of
Kalamazoo, Michigan and Edward Thompson of Kalamazoo, Michigan (the
"Executive").

                                   BACKGROUND

         The Executive desires to provide his service to the Corporation and the
Corporation desires to employ the Executive on the terms which are provided
below. The Executive has provided invaluable services to the Corporation in the
past and is important to the continuing success of the Corporation. The
Corporation wishes to provide the Executive with the assurance of continued
employment and secure from the Executive assurances that he will remain with the
Corporation. Therefore, in consideration of the mutual promises in this
Agreement, the Corporation and the Executive agree as to the following terms and
conditions.

              ARTICLE I - EMPLOYMENT TERM, DUTIES AND RESTRICTIONS

         1.01 Employment and Term. The Corporation hereby employs the Executive,
and the Executive hereby accepts employment with the Corporation. The term of
employment and this Agreement will commence on the effective date hereof and
continue for a term of three (3) years and four (4) months (through October 31,
2006) unless extended as provided below or unless terminated earlier pursuant to
Section 3.03 or Article V. Thereafter, this Agreement will be automatically
renewed for consecutive one-year terms, unless either party gives the other
party at least 90 days prior written notice of his or its intention to terminate
the Agreement prior to the beginning of the final year of the Agreement.

         1.02 Duties. Except for the permitted activities set forth in Section
1.03 below, during the term of employment hereunder, the Executive shall devote
his full time, attention, loyalty, skill and efforts to the performance of the
duties described herein. The position of the Executive shall be Vice President
of Operations with normal duties and responsibilities commensurate with such
position including the duties and responsibilities of the Executive as Vice
President of Operations as of the date of this Agreement. During the term of the
employment the services shall be performed at the Corporation's executive
offices located at 5944 East Kilgore Road, Kalamazoo, Michigan, or at any
relocated executive offices not more than 30 miles from that location.

         1.03 Other Employment. During the term of his employment hereunder, the
Executive may not be an employee, consultant, director or other agent of any
other person, firm or corporation without the prior signed written approval of
the Board of

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Directors of the Corporation. The Executive may engage in passive business
activities which do not interfere with his employment under this Agreement and
which do not conflict with the Corporation's interests. Notwithstanding the
foregoing, during the term of this Agreement, the Executive may: (i) serve on
corporate, civic or charitable boards or committees, (ii) deliver lectures,
fulfill speaking engagements or teach at educational institutions; and (iii)
manage personal investments, so long as such activities do not interfere with
the performance of the Executive's responsibilities and duties in accordance
with this Agreement.

                ARTICLE II - COMPENSATION, BENEFITS AND EXPENSES

         2.01 Compensation. The Corporation shall pay the Executive an annual
base salary in an amount equal to $105,775, payable in approximately equal
installments at such intervals as are consistent with the Corporation's pay
periods for the Corporation's regular salaried employees. The Executive's annual
base salary shall be subject to annual review and adjustment by the Board of
Directors of the Corporation, provided, however, that such annual base salary
shall not be less than $105,775. All compensation shall be subject to all
applicable withholding and similar requirements under applicable law.

         2.02 Annual Bonus. The Executive shall also be entitled to an annual
bonus at the end of each of the Corporation's fiscal years in accordance with
the Corporation's bonus program as approved from time to time by the Board of
Directors. Each annual bonus shall be paid not later than 90 days after the end
of the fiscal year for which such bonus was earned. Provided, however, that the
Executive's bonus for any fiscal year in which the Corporation attains a profit
level specified in the Corporation's Profit Sharing Bonus Plan as of the date of
this Agreement will not be less than the bonus presently called for at such
specified profit level, and the number of individuals who share in the bonus
pool in which the Executive participates will not be increased without the
Executive's consent. If the Executive's employment terminates before the end of
a fiscal year, he will be paid a prorated bonus for the year in an amount equal
to (A) the bonus he would have received if employed through the date required
for payment of a full bonus for the year, multiplied by (B) a fraction the
numerator of which is the number of days elapsed in the fiscal year through the
date on which the Executive's employment terminates and the denominator of which
is 365. The prorated bonus shall be paid to the Executive not later than 90 days
after the end of the fiscal plan year in which the Executive's employment
terminates.

         2.03 Benefits. The Executive shall also be eligible to participate in
any retirement, group, disability, insurance, vacation or other plan or program
("benefit program") made available to other executives of the Corporation.
During the term of this Agreement, the Executive shall be eligible to
participate in and receive all benefits under benefit programs provided by the
Corporation to any other executive position of the Corporation with terms no
less favorable to the Executive than those existing as of the date of this
Agreement. In addition, notwithstanding any other provision of this

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Agreement or any other document, the Executive shall have the right to exercise
outstanding stock options after any termination of his employment for the
greater of (A) the period allowed by the stock option agreement or plan or (B)
90 days after any termination of the employment.

         2.04 Expenses. The Corporation shall promptly pay or reimburse the
Executive for all reasonable travel, entertainment and other expenses incurred
by the Executive in connection with the performance of his duties under this
Agreement upon presentation of expense statements or vouchers and such other
supporting information as it may from time to time request; provided that,
subject to the above, the Executive shall comply with all applicable policies of
the Corporation relating to reimbursement for travel and other expenses.

         2.05 Automobile. The Corporation shall provide the Executive a monthly
automobile allowance in accordance with the plans, policies and practices of the
Corporation, at least equal to that existing as of the effective date of this
Agreement.

         2.06 Severance Pay and Benefits. Subject to Section 2.07 and 2.08, if
the Executive's employment is terminated by the Corporation other than pursuant
to Section 3.03 or for Cause (as defined in Section 5.01); or if the Corporation
materially breaches the Agreement or materially changes his duties; the
Corporation shall provide the Executive: (i) with a severance payment equal to
the sum of (a) two (2) times the Executive's annual salary as then in effect and
(b) an amount equal to two (2) times the Executive's average annual bonus for
the three (3) complete fiscal years of the Corporation immediately prior to the
year in which the Executive's employment is terminated, provided that such
severance payment shall be paid to the Executive in a lump sum within sixty (60)
days of his termination; and (ii) continuation of the Executive in the
Corporation's health and dental (including dependent coverage), disability and
life insurance benefits paid for by the Corporation for a period of two (2)
years after the termination.

         2.07 Release. Prior to receipt of the severance payment and benefits
under Section 2.06, the Executive shall sign and deliver to the Corporation an
agreement in form reasonably acceptable to the Corporation which releases the
Corporation from any and all claims of the Executive except for: (A) claims
under this Agreement; (b) vested rights of the Executive under any benefit
program arising out of his employment through the date of employment
termination; and (C) any rights of indemnification under the Corporation's
Articles of incorporation or Bylaws and any indemnification agreement then in
effect.

         2.08 Cap on Severance Pay and Benefits. If any the total amount of
severance payment and benefits payable to the Executive under Section 2.06 is an
"Excess Payment" as defined in Section 280G(b)(2) of the United States Internal
Revenue Code

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("Code"), such payment or benefit will be modified or reduced to the extent
necessary so that the total payment and benefits payable or to be provided to
the Executive under Section 2.06 that are treated as Excess Payments will not
cause the Corporation to have paid an "Excess Payment" as defined in Section
280G(b)(1) of the Code. In the event that the amount of any "Excess Payment"
that would be payable to or for the benefit of the Executive under Section 2.06
must be modified or reduced to comply with this Section 2.08, the Executive will
direct which "Excess Payments" are to be modified or reduced.

                       ARTICLE III - VACATION AND ABSENCES

         3.01 Vacation. The Executive shall receive vacation days, in accordance
with the Corporation's policy, plan and practices at least equal to the amount
of annual vacation days provided to the Executive as of the date of this
Agreement.

         3.02 Other Absences. The Executive shall be entitled to standard
holidays established by the Corporation, at least as favorable to the Executive
as those existing as of the date of this Agreement.

         3.03 Disability Leave of Absence. In the event the Executive becomes
"totally and permanently disabled" and unable to perform any foreseeable work in
fulfillment of his position, the Corporation shall pay to the Executive an
amount equal to one (1) times the Executive's annual base salary as then in
effect (the "Disability Payment"), and this Agreement shall automatically
terminate and the Corporation shall have no further obligations under this
Agreement but the Executive shall retain the rights set forth in (A) through (C)
in Section 2.07 (including all applicable rights to long term disability
benefits with regard to such disability under the Corporation's long term
disability benefit program).

         In the event the Executive becomes "disabled" (as initially determined
by the Executive's physician, and as defined by the Americans' with Disabilities
Act, provided the Corporation may, if necessary and at the Corporation's
expense, obtain a second physician's opinion; if the second physician's opinion
shall differ with the Executive's physician's opinion, then the parties shall
pick a mutually agreeable third physician, whose opinion will be determinative
and whose cost shall be borne equally by the parties) and unable to perform some
types of work, the Executive shall provide the Corporation with a comprehensive
list and explanation of the Executive's restrictions. If the Corporation is
unable to "reasonably accommodate" the Executive's restrictions so that the
Executive can continue performing the "essential functions" of the job described
in this Agreement, the following will apply:

         A. Executive shall, upon timely written request, be granted a leave of
absence for up to one hundred eighty (180) calendar days (but not beyond the end
of the term of

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employment set forth in Section 1.01), which leave shall run concurrently with
any leave applicable under the Family Medical Leave Act. Salary and benefits
shall continue during this leave of absence. All other provisions of this
Agreement shall remain in full force and effect during the approved leave of
absence.

         B. Upon expiration of the leave of absence (not to exceed 180 calendar
days), if the Executive is unable to return to work (he must submit a
physician's release setting forth any and all restrictions) and perform the
"essential functions" of his job, either with or without reasonable
accommodation, this Agreement shall automatically terminate, subject to payment
to the Executive of the Disability Payment as provided in Section 3.03, and the
Corporation shall have no further obligations under this Agreement, but the
Executive shall retain the rights set forth in (A) through (C) in Section 2.07
(including all applicable rights to long term disability benefits with regard to
such disability under the Corporation's long term disability benefit program).

                      ARTICLE IV - CONFIDENTIAL INFORMATION

         4.01 Definition. The term "Confidential Information", as used herein,
shall mean any information concerning the Corporation which is disclosed to or
acquired by the Executive directly or indirectly, in the course of the
Executive's employment with the Corporation. Confidential Information shall also
include, but not be limited to, knowledge of the Corporation's patents,
trademarks, trade-names, intellectual properties, logo, proprietary information,
processes, trade secrets, business plans, business opportunities, business
strategies, pricing, margins, financial information, customers, customer lists
and related information and all memoranda, notes, reports and documents, and all
copies and extracts thereof, obtained by the Executive in connection with his
employment with the Corporation. Confidential Information shall not include
information or other material in the public domain or that is generally known in
the industry.

         4.02 Agreements Regarding Confidential Information. The Executive
covenants, agrees and shall undertake:

                  A. Not to use Confidential Information for any purpose other
than in the employment of the Corporation.

                  B. Not to disclose, directly or indirectly, any Confidential
Information to any third parties, except in the employment of the Corporation
for the benefit of the Corporation.

         4.03 Return of Confidential Information. Upon termination of this
Agreement, the Executive shall promptly return to the Corporation all
Confidential Information supplied to or possessed by him and shall not retain
any copies or other reproductions, or extracts thereof, of the Confidential
Information. The Executive shall also destroy or

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have destroyed all memoranda, notes, reports and documents, and all copies and
other reproductions, and extracts thereof, prepared by him and containing
Confidential Information. The Executive shall provide a written certificate to
the Corporation that the action required to be taken has been accomplished.

         4.04 Remedies. The Executive recognizes that a breach by him of this
Article IV may give rise to irreparable injury to the Corporation inadequately
compensable in damages and, accordingly, agrees that the Corporation may seek
and obtain injunctive relief against such breach or threatened breach, in
addition to any other legal remedies which may be available, including the
recovery of monetary damages from the Executive.

         4.05 Survival. The terms of this Article IV shall survive termination
of this Agreement.

                             ARTICLE V - TERMINATION

         5.01 Termination by the Corporation for Cause. This Agreement may be
terminated at any time by the Corporation for Cause (as defined in this Section)
and without prior notice. As used herein, "Cause" shall be defined as:

                  (a) if the Executive willfully makes a false or fraudulent
         statement to the Corporation which is materially injurious to the
         Corporation;

                  (b) if the Executive is convicted of a felony (other than
         negligent vehicular homicide);

                  (c) if the Executive willingly converts the Corporation's
         property or funds (not including office supplies and the like with a
         value of less than $100);

                  (d) if the Executive willfully engages in gross misconduct or
         gross dereliction of duties and responsibilities to the Corporation.

         For purposes of this provision, no act or failure to act, on the part
of the Executive, shall be considered "willful" unless it is done, or omitted to
be done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Corporation. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board of Directors or upon the advice of counsel for the
Corporation shall be conclusively presumed to be done, or omitted to be done, by
the Executive in good faith and in the best interests of the Corporation. The
cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Board of Directors at a meeting of the Board of
Directors called and held for such purpose (after reasonable notice is provided
to the Executive and the Executive is given

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an opportunity, together with counsel, to be heard before the Board of
Directors), finding that, in the good faith opinion of the Board of Directors,
the Executive is guilty of the conduct described. Any determination of "Cause"
by the Board of Directors shall not be conclusive, but shall be subject to
independent determination by the finder of fact in any legal proceedings
relating to such termination; provided, however, that the Board of Directors
shall have the right to suspend the Executive with pay, pending the
determination by the finder of fact in such legal proceeding.

         5.02 Termination at the Will of the Corporation. This Agreement may be
terminated at any time by the Corporation without cause and without prior
notice; provided, that if such termination is not for Cause (as defined in
Section 5.01), the Executive shall receive the severance payment and benefits
set forth in Section 2.06.

         5.03 Termination at the Will of the Executive. The Executive may
terminate this Agreement and his employment at any time for any reason or no
reason by providing written notice to the Corporation not less than thirty (30)
days prior to the effective date of termination (as stated in the notice). After
it receives written notice, the Corporation may elect to relieve the Executive
of his duties prior to the effective date of termination; provided that the
Corporation shall continue to pay salary and provide benefits to the Executive
up to the effective date of termination.

         5.04 Immediate Termination at the Executive's Death. This Agreement and
the Executive's employment shall terminate upon the death of the Executive,
provided, however, that a separation benefit in an amount equal to the
Disability Payment shall be paid to Executive.

                           ARTICLE VI - MISCELLANEOUS

         6.01 Revocation of Prior Agreements. It is expressly understood and
agreed that this Agreement cancels, revokes and takes precedence over any other
prior oral or written agreements or understandings between the parties
concerning the employment of Executive.

         6.02 Invalidity. The invalidity of any provision of this Agreement
shall not affect the validity of the remainder of any such provision or the
remaining provisions of this Agreement.

         6.03 Entire Agreement and Amendment. This writing contains the entire
agreement between the parties with respect to the matters described herein and
is a complete and exclusive statement as to the terms thereof and supersedes all
previous agreements, including but not limited to, that certain Employment
Agreement by and between the Corporation and the Executive dated June 20, 2003.
This Agreement may not be altered or modified except by a writing signed by the
party against whom such alteration or modification is sought.

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         6.04 Assignment. The rights and obligations of the Corporation under
this Agreement shall inure to the benefit of and be binding upon its successors
and assigns. The Executive may not assign any interest in this Agreement without
the written consent of the Corporation.

         6.05 Governing Law and Choice of Forum. Michigan law shall govern the
construction and enforceability of this Agreement. Any and all actions
concerning any dispute arising hereunder shall be filed and maintained only in a
state or federal court sitting in the State of Michigan.

         6.06 No Implied Waivers. Failure of either party to insist upon strict
performance of any part of this Agreement shall not be considered a waiver of
such performance and shall not prevent either party from subsequently insisting
upon strict performance.

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

If to the Executive:                 Edward Thompson
                                     5944 E. Kilgore Road
                                     P.O. Box 2121
                                     Kalamazoo, Michigan 49003

If to the Corporation:               Prab, Inc.
                                     5944 E. Kilgore Road
                                     P.O. Box 2121
                                     Kalamazoo, Michigan 49003
                                     Attention: Robert W. Klinge

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

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           IN WITNESS WHEREOF, the parties have signed this Agreement on the 3rd
day of November, 2003.

           The Corporation:                     PRAB, INC.

                                                By:  /s/ Eric V. Brown, Jr.
                                                     ---------------------------
                                                     Eric V. Brown, Jr.
                                                Its: Secretary

           The Executive:                       /s/ Edward Thompson
                                                --------------------------------
                                                Edward Thompson

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                                                                    EXHIBIT 10.1

              WEATHERFORD INTERNATIONAL LTD. RESTRICTED SHARE PLAN

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                                TABLE OF CONTENTS
<TABLE>
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                                                                                                           PAGE
<S>                                                                                                        <C>
ARTICLE I       PURPOSE AND TERM.........................................................................    1

     1.1      Purpose....................................................................................    1

     1.2      Term of Plan...............................................................................    1

ARTICLE II      DEFINITIONS..............................................................................    1

ARTICLE III     ELIGIBILITY..............................................................................    4

ARTICLE IV      RESTRICTED SHARE AWARDS..................................................................    4

     4.1      Authority to Grant Awards..................................................................    4

     4.2      Dedicated Shares...........................................................................    4

     4.3      Maximum Awards for Officers and Directors..................................................    5

     4.4      Terms of Awards............................................................................    5

     4.5      Holder's Rights as Shareholder.............................................................    5

     4.6      Non-Transferability........................................................................    6

     4.7      Requirements of Law........................................................................    6

     4.8      Changes in the Company's Capital Structure.................................................    6

     4.9      Change in Control..........................................................................    7

     4.10     Fractional Shares..........................................................................    7

ARTICLE V       ADMINISTRATION...........................................................................    7

ARTICLE VI      AMENDMENT OR TERMINATION OF PLAN.........................................................    8

ARTICLE VII     MISCELLANEOUS............................................................................    8

     7.1      No Establishment of a Trust Fund...........................................................    8

     7.2      No Employment or Affiliation Obligation....................................................    9

     7.3      Tax Withholding............................................................................    9

     7.4      Written Agreement..........................................................................    9

     7.5      Indemnification of the Committee...........................................................    9

     7.6      Gender.....................................................................................   10

     7.7      Headings...................................................................................   10

     7.8      Other Compensation Plans...................................................................   10

     7.9      Other Awards...............................................................................   10

    7.10      Exercise of Corporate Powers...............................................................   10
</TABLE>

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<TABLE>
<S>                                                                                                     <C>
7.11      Persons Residing Outside of the United States..............................................   10

7.12      Governing Law..............................................................................   11
</TABLE>

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                                   ARTICLE I

                                PURPOSE AND TERM

         1.1      PURPOSE. The Plan is intended to advance the best interests of
the Company and its Affiliates by providing those persons who have substantial
responsibility for the management and growth of any of the Company or its
Affiliates with additional incentives and an opportunity to obtain or increase
their proprietary interest in the Company, thereby encouraging them to continue
in their employment or affiliation with the Company or any of its Affiliates.

         1.2      TERM OF PLAN. Subject to earlier termination by the Committee
pursuant to Article VI, no Award will be granted under the Plan after May 9,
2013, the tenth anniversary of the date of the adoption of the Plan, but Awards
granted before such date may extend beyond such date, and all authority of the
Committee with respect to Awards hereunder, including the authority to amend the
Plan, shall continue in respect of Awards outstanding on such date.

                                   ARTICLE II

                                   DEFINITIONS

         The words and phrases defined in this Article shall have the meaning
set out in these definitions throughout the Plan, unless the context in which
any such word or phrase appears reasonably requires a broader, narrower or
different meaning.

         (a)      "AFFILIATE" means any Entity that directly or indirectly
controls, is controlled by, or is under common control with any other Entity.

         (b)      "ASSETS" means assets (of any kind) owned by the Company,
including, without limitation, any securities of the Company's direct or
indirect subsidiaries and any assets of the Company's direct or indirect
subsidiaries.

         (c)      "AWARD" means any authorization by the Committee to transfer
Restricted Shares to a Holder.

         (d)      "AWARD AGREEMENT" means a written agreement entered into
between the Company and the Holder setting forth the terms and conditions
pursuant to which an Award is granted.

         (e)      "BOARD" means the board of directors of the Company.

         (f)      "CHANGE IN CONTROL" means the occurrence of any one of the
following events:

                  (i)      any Person is or becomes the Beneficial Owner (as
         defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
         of 20 percent or more of either (A) the then outstanding Shares (the
         "Outstanding Shares") or (B) the combined voting power of the then
         outstanding voting securities of the Company

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         entitled to vote generally in the election of directors (the
         "Outstanding Voting Securities"), excluding any Person who becomes such
         a Beneficial Owner in connection with a transaction that complies with
         clauses (A), (B) and (C) of paragraph (iii) below;

                  (ii)     individuals, who, as of the date hereof, constitute
         the Board (the "Incumbent Board") cease for any reason to constitute at
         least two-thirds of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least two thirds of the Incumbent Board shall be
         considered as though such individual was a member of the Incumbent
         Board, but excluding, for this purpose, any such individual whose
         initial assumption of office occurs as a result of an actual or
         threatened election contest with respect to the election or removal of
         directors or other actual or threatened solicitation of proxies or
         consents by or on behalf of a Person other than the Board; or

                  (iii)    the consummation of a reorganization, merger,
         amalgamation, consolidation or similar transaction of the Company or
         any of its subsidiaries or the sale, transfer or other disposition of
         all or substantially all of the Assets (a "Corporate Transaction"),
         unless, following such Corporate Transaction or series of related
         Corporate Transactions, as the case may be, (A) all of the individuals
         and Entities who were the beneficial owners, respectively, of the
         Outstanding Shares and Outstanding Voting Securities immediately prior
         to such Corporate Transaction beneficially own, directly or indirectly,
         more than 66 2/3 percent of, respectively, the then outstanding common
         shares and the combined voting power of the then outstanding voting
         securities entitled to vote generally in the election of directors (or
         other governing body), as the case may be, of the Entity resulting from
         such Corporate Transaction (including, without limitation, an Entity
         which as a result of such transaction owns the Company or all or
         substantially all of the Assets either directly or through one or more
         subsidiaries or Entities) in substantially the same proportions as
         their ownership, immediately prior to such Corporate Transaction, of
         the Outstanding Shares and the Outstanding Voting Securities, as the
         case may be, (B) no Person (excluding any Entity, resulting from such
         Corporate Transaction or any employee benefit plan (or related trust)
         of the Company of such Entity resulting such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding common shares of the Entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such Entity except to the
         extent that such ownership existed prior to the Corporate Transaction
         and (C) at least two-thirds of the members of the board of directors or
         other governing body of the Entity resulting from such Corporate
         Transaction were members of the Incumbent Board at the time of the
         approval of such Corporate Transaction; or

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                  (iv)     approval or adoption by the Board or the shareholders
         of the Company of a plan or proposal which could result directly or
         indirectly in the liquidation, transfer, sale or other disposal of all
         or substantially all of the Assets or the dissolution of the Company.

         (g)      "CODE" means the United States Internal Revenue Code of 1986,
as amended.

         (h)      "COMMITTEE" means the Compensation Committee of the Board or
such other committee designated by the Board; provided that, with respect to the
grant of Awards to, and the administration of the Plan with respect to,
Directors who are not Employees, the Committee means the Board.

         (i)      "COMPANY" means Weatherford International Ltd., a Bermuda
exempted company, or any successor (by acquisition, reincorporation, merger,
consolidation, amalgamation or otherwise).

         (j)      "DIRECTOR" means an individual who is elected by the
shareholders of the Company, or in the case of a vacancy or newly created
position, by the other directors, to serve on the Board who performs the
functions of a director set forth in the Company's bye-laws.

         (k)      "DISABILITY" has the meaning given such term in a Holder's
Award Agreement; or, if not defined in the Award Agreement, "Disability" means
as determined by the Committee in its discretion exercised in good faith, a
physical or mental condition of the Holder that would entitle him to payment of
disability income payments under the Company's long-term disability insurance
policy or plan for employees as then in effect; or if the Holder is not covered,
for whatever reason (including, without limitation, because the Holder is a
Director), under the Company's long-term disability insurance policy or plan for
Employees or if the Company does not maintain such a long-term disability
insurance policy, "Disability" means a permanent and total disability as defined
in section 22(e)(3) of the Code. A determination of Disability may be made by a
physician selected or approved by the Committee and, in this respect, the Holder
shall submit to an examination by such physician upon request by the Committee.

         (l)      "EMPLOYEE" means a person employed by the Company or any of
its Affiliates as a common law employee.

         (m)      "ENTITY" means any corporation, partnership, association,
joint-stock company, limited liability company, trust, unincorporated
organization or other business entity.

         (n)      "EXCHANGE ACT" means the United States Securities Exchange Act
of 1934, as amended.

         (o)      "FAIR MARKET VALUE" of one Share means the last reported sale
price for the Shares on the principal exchange on which the Shares are traded on
the business day immediately preceding the date for which the Fair Market Value
is being determined (or, if the Shares were not traded on such immediately
preceding date, on the immediately preceding date on which the Shares were so
traded).

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         (p)      "HOLDER" means a person who has been granted an Award or any
person who is entitled to receive Shares under an Award.

         (q)      "PERSON" has the meaning given such term in Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its affiliates (as defined in
Rule 12b-2 promulgated under Section 12 of the Exchange Act), (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions of their ownership of the Shares.

         (r)      "PLAN" means the Weatherford International Ltd. Restricted
Share Plan, as set forth in this document and as it may be amended from time to
time.

         (s)      "RESTRICTED SHARES" means Shares transferred under the Plan
pursuant to an Award Agreement.

         (t)      "SHARES" means the common shares, par value $1.00 per share,
of the Company, or, in the event that the Shares are later changed into or
exchanged for a different class of shares or securities of the Company or
another corporation, that other share or security. Shares may be represented by
a certificate or by book or electronic entry.

                                  ARTICLE III

                                   ELIGIBILITY

         The individuals who shall be eligible to receive Awards shall be those
key Employees and Directors who have substantial responsibility for the
management and growth of the Company and its Affiliates as the Committee shall
determine from time to time.

                                   ARTICLE IV

                             RESTRICTED SHARE AWARDS

         4.1      AUTHORITY TO GRANT AWARDS. The Committee may grant Awards to
those key Employees of the Company or any of its Affiliates and the Directors as
it shall from time to time determine, under the terms and conditions of the
Plan. Subject only to any applicable limitations set out in the Plan, the number
of Shares to be covered by any Award to be granted to any person shall be as
determined by the Committee.

         4.2      DEDICATED SHARES. The aggregate number of Shares with respect
to which Awards may be granted under the Plan is 3,835,000, subject to
adjustment in accordance with the provisions of Section 4.8(a). To the extent
that any outstanding Award expires or terminates for any reason or any Award is
surrendered, the Shares allocable to such portion of that Award shall again be
available for transfer in connection with future Awards granted under the Plan.
Shares that are withheld to satisfy any tax withholding requirements shall also
again be available for

                                       4
<PAGE>
transfer in connection with future Awards granted under the Plan. The Shares
available to satisfy Awards shall be Shares held by any subsidiary of the
Company (hereinafter referred to as "treasury shares").

         4.3      MAXIMUM AWARDS FOR OFFICERS AND DIRECTORS. No Director or
officer of the Company or any Affiliate may acquire under the Plan more than
1,208,447 Shares, which number represents one percent of the Shares outstanding
at the time the Plan was adopted.

         4.4      TERMS OF AWARDS. Each Award shall be evidenced by an Award
Agreement that contains any transferability and forfeiture restrictions and
other provisions not inconsistent with the Plan as the Committee may specify. If
the Committee imposes transferability restrictions on a Holder's rights with
respect to Restricted Shares, the Committee may issue such instructions to the
Company's share transfer agent in connection therewith as it deems appropriate.
The Committee may also cause the certificate for Shares acquired pursuant to an
Award to be imprinted with any legend which counsel for the Company considers
advisable with respect to the restrictions or, should the Shares be represented
by book or electronic entry rather than a certificate, the Company may take such
steps to restrict transfer of the Shares as counsel for the Company considers
necessary or advisable to comply with applicable law. The Company may require
that the Share certificates evidencing Restricted Shares will be held in the
custody of the Company until the restrictions thereon have lapsed, and that the
Holder, as a condition of an Award, shall have delivered a share transfer form,
endorsed in blank, relating to the Restricted Shares covered by the Award.

         Unless a Holder's Award Agreement expressly provides otherwise and
except as set forth in Section 4.6, a Holder shall not be entitled to transfer
any Shares subject to the Award Agreement until the earliest to occur of (1) the
Holder's death before he has otherwise terminated his employment or affiliation
relationship with the Company or its Affiliates, (2) the Holder's incurring a
Disability while in the employ or affiliation of the Company or an Affiliate,
(3) the retirement of the Holder in good standing from the employ of the Company
or its Affiliates under the then established rules of the Company and its
Affiliates (provided that the Holder shall in such event only be entitled to
transfer a number of the Shares subject to the Award Agreement equal to a
fraction, the numerator of which is the Holder's total whole years of service
since the Award was granted and the denominator of which is three), (4) the
third anniversary of the date of grant of the Award, or (5) the occurrence of a
Change in Control.

         The prospective recipient of an Award shall not have any rights with
respect to any such Award, unless and until he has executed an Award Agreement
and delivered it to the Company.

         4.5      HOLDER'S RIGHTS AS SHAREHOLDER. Subject to the terms and
conditions of the Plan, each Holder of Restricted Shares shall have all the
rights of a shareholder with respect to the Shares included in the Award during
any period in which such Shares are subject to forfeiture and restrictions on
transfer, including without limitation, the right to vote such Shares, if
unrestricted Shares of the same class have the right to vote. Dividends paid
with respect to Restricted Shares in cash or property other than Shares or
rights to acquire Shares shall be paid to the Holder currently. Any Shares
issued to a Holder pursuant to dividends in respect of

                                       5
<PAGE>
Restricted Shares that are paid in Shares or rights to acquire Shares shall be
added to and become a part of the Restricted Shares.

         4.6      NON-TRANSFERABILITY. Except as specified in the applicable
Award Agreements or in domestic relations court orders, Awards and the Shares
acquired pursuant thereto shall not be transferable by the Holder (and shall be
exercisable during the Holder's lifetime only by him or her) other than (a) by
will or under the laws of descent and distribution, (b) to the Holder's spouse,
children, brothers, sisters, parents, grandchildren and grandparents, whether
related by blood, marriage or adoption (collectively, "Immediate Family
Members"); to trusts solely for the benefit of the Holder's Immediate Family
Members; or to partnerships in which the only partners are the Holder's
Immediate Family Members or trusts solely for the benefit of the Holder's
Immediate Family Members or (c) to a charity qualified under section 170(c) of
the Code (any transferee described in clauses (a) - (c) above is referred to
herein as a "Transferee"). Awards and the Shares acquired pursuant thereto shall
not be transferable by a Transferee other than, in the case of a Transferee who
is an individual, by will or under the laws of descent and distribution, and
shall be exercisable during a Transferee's lifetime only by the Transferee. In
the discretion of the Committee, any attempt to transfer an Award or the Shares
acquired pursuant thereto other than under the terms of the Plan and the
applicable Award Agreement may terminate the Award.

         4.7      REQUIREMENTS OF LAW. The Company shall not be required to
cause a subsidiary to transfer any Shares under any Award if transferring those
Shares would constitute or result in a violation by the Holder or the Company of
any provision of any law, statute or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating
to the registration of securities, the Company shall not be required to cause a
subsidiary to transfer any Shares unless the Committee has received evidence
satisfactory to it to the effect that the Holder of that Award will not transfer
the Shares except in accordance with applicable law, including receipt of an
opinion of counsel satisfactory to the Company to the effect that any proposed
transfer complies with applicable law. The determination by the Committee on
this matter shall be final, binding and conclusive. The Company may, but shall
in no event be obligated to, register any Shares covered by the Plan pursuant to
applicable securities laws of any country or any political subdivision. In the
event any Restricted Shares are not registered, the Company may imprint on the
certificate evidencing the Restricted Shares any legend that counsel for the
Company considers necessary or advisable to comply with applicable law or,
should the Restricted Shares be represented by book or electronic entry rather
than a certificate, the Company may take such steps to restrict transfer of the
Restricted Shares as counsel for the Company considers necessary or advisable to
comply with applicable law. The Company shall not be obligated to take any other
affirmative action to cause the transfer of Shares pursuant to any Award to
comply with any law or regulation of any governmental authority.

         4.8      CHANGES IN THE COMPANY'S CAPITAL STRUCTURE.

                  (a) If the Company shall effect a subdivision or consolidation
         of the Shares or other capital readjustment, a distribution of Shares
         having an effect similar to a stock dividend, or other increase or
         reduction of the number of Shares outstanding, or a conversion of the
         Company into another form of legal entity, without receiving
         consideration in the form of money, services or property (each, a
         "Capital Transaction"),

                                       6
<PAGE>
         then (i) the number, class or series of Shares subject to outstanding
         Awards under the Plan shall be appropriately adjusted so as to allow
         the Holders of such Awards to participate in the Capital Transaction in
         the same manner as the holders of unrestricted Shares of the same class
         participate and (ii) the number of Shares then reserved under the Plan
         shall be adjusted by substituting for the total number of Shares then
         reserved, that number and class or series of securities that would have
         been received by the owner of an equal number of outstanding shares of
         each class or series of securities as the result of the Capital
         Transaction.

                  (b) Subject to Section 4.9, in the event of changes in the
         outstanding Shares by reason of recapitalizations, reorganizations,
         mergers, amalgamations, consolidations, combinations, exchanges,
         conversions or other relevant changes in capitalization occurring after
         the date of the grant of any Award and not otherwise provided for by
         this Section 4.8 (each, a "Recapitalization Event"), any outstanding
         Awards and any Award Agreements evidencing such Awards shall be
         appropriately adjusted so as to allow the Holders of such Awards to
         participate in the Recapitalization Event in the same manner as the
         holders of unrestricted Shares of the same class participate.

                  (c) The issuance by the Company of equity interests of any
         class or series, or securities convertible into, or exchangeable for,
         equity interests of any class or series, for cash or property, or for
         labor or services either upon direct sale or upon the exercise of
         rights or warrants to subscribe for them, or upon conversion or
         exchange of equity interests or obligations of the Company convertible
         into, or exchangeable for, shares or other securities, shall not
         affect, and no adjustment by reason of such issuance shall be made with
         respect to, the number, class or series of Shares then subject to
         outstanding Awards.

         4.9      CHANGE IN CONTROL. In the event of the occurrence of a Change
in Control, a Holder of an outstanding Award shall have a fully nonforfeitable
and transferable interest in his Award and in the Restricted Shares acquired
pursuant thereto immediately upon the occurrence of the Change in Control unless
otherwise expressly provided in the Holder's Award Agreement. The provisions of
this Section 4.9 may not be deleted or amended to adversely affect an Award
granted under the Plan without the prior written consent of the Holder of the
Award.

         4.10     FRACTIONAL SHARES. No fractional Shares shall be acquired
pursuant to the Plan. If the application of any provision of the Plan would
yield a fractional share, such fractional share shall be rounded down to the
next whole share if it is less than 0.5 and rounded up to the next whole share
if it is 0.5 or more.

                                   ARTICLE V

                                 ADMINISTRATION

         The Plan shall be administered by the Committee. All questions of
interpretation and application of the Plan and Awards shall be subject to the
determination of the Committee. A

                                       7
<PAGE>
majority of the members of the Committee shall constitute a quorum. All
determinations of the Committee shall be made by a majority of its members. Any
decision or determination reduced to writing and signed by all of the members
shall be as effective as if it had been made by a majority vote at a meeting
properly called and held. In carrying out its authority under the Plan, the
Committee shall have full and final authority and discretion, including but not
limited to the following rights, powers and authorities, to:

                  (a) determine the persons to whom and the time or times at
         which Awards will be made;

                  (b) determine the number of Shares covered under each Award,
         subject to the terms of the Plan;

                  (c) determine the terms, provisions and conditions of each
         Award, which need not be identical and need not match the default terms
         set forth in the Plan;

                  (d) accelerate the time at which any outstanding lapse
         restrictions applicable to an Award will expire;

                  (e) prescribe, amend and rescind rules and regulations
         relating to administration of the Plan; and

                  (f) make all other determinations and take all other actions
         deemed necessary, appropriate or advisable for the proper
         administration of the Plan.

         The actions of the Committee in exercising all of the rights, powers,
and authorities set out in this Article and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be final, conclusive and
binding on all parties.

                                   ARTICLE VI

                        AMENDMENT OR TERMINATION OF PLAN

         The Committee may amend, terminate or suspend the Plan at any time, in
its sole and absolute discretion subject to the rights of Holders of outstanding
Awards at the time of such amendment, termination or suspension and provided
that if approval of the Company's shareholders is required by applicable law or
regulation for any amendment of the Plan, no such amendment shall be effective
unless and until such approval is obtained.

                                  ARTICLE VII

                                  MISCELLANEOUS

         7.1      NO ESTABLISHMENT OF A TRUST FUND. No property shall be set
aside nor shall a trust fund of any kind be established to secure the rights of
any Holder under the Plan. All Holders shall at all times rely solely upon the
general credit of the Company for the payment of any benefit which becomes
payable under the Plan.

                                       8
<PAGE>
         7.2      NO EMPLOYMENT OR AFFILIATION OBLIGATION. The granting of any
Award shall not constitute an employment contract, express or implied, nor
impose upon the Company or any of its Affiliates any obligation to employ or
continue to employ, or utilize the services of, any Holder. The right of the
Company and its Affiliates to terminate the employment or affiliation of any
person shall not be diminished or affected by reason of the fact that an Award
has been granted to him or her.

         7.3      TAX WITHHOLDING. Except with respect to each Holder who is a
Director that is not an Employee of the Company or its Affiliates, the Company
or its Affiliate as applicable shall be entitled to deduct from other
compensation payable to each Holder any sums required by federal, state or local
tax law to be withheld with respect to the lapse of restrictions on Restricted
Shares. In the alternative, the Company may require the Holder of an Award to
pay such sums for taxes directly to the Company or its Affiliate as applicable
in cash or by check. The Committee may, in its discretion, permit a Holder to
satisfy any minimum tax withholding obligations arising upon the lapse of
restrictions applicable to Restricted Shares by delivering to the Holder of the
Award a reduced number of Shares in the manner specified herein. If permitted by
the Committee and acceptable to the Holder, at the time of the lapse of
restrictions applicable to Restricted Shares, the Company shall (i) calculate
the amount of the Company's or its Affiliate's minimum statutory tax withholding
obligation on the assumption that all such Restricted Shares are made available
for delivery, (ii) reduce the number of such Shares made available for delivery
so that the Fair Market Value of the Shares withheld on the date the
restrictions expire approximates the minimum amount of tax the Company or its
Affiliate is obliged to withhold and (iii) in lieu of the withheld Shares, remit
cash to the United States Treasury and other applicable governmental
authorities, on behalf of the Holder, in the amount of the minimum withholding
tax due. The Company shall withhold only whole Shares to satisfy its minimum
withholding obligation. If the Fair Market Value of the withheld Shares does not
equal the Company's or its Affiliate's minimum withholding tax obligation, the
Holder of the Award must satisfy the remaining minimum withholding obligation in
some other manner permitted under this Section 7.3. The withheld Shares not made
available for delivery by the Company shall be retained as treasury shares, and
the Holder's right, title and interest in such Shares shall terminate. The
Company shall have no obligation upon lapse of restrictions on Restricted Shares
until the Company or its Affiliate as applicable has received payment sufficient
to cover all minimum tax withholding amounts due with respect to the lapse of
restrictions. Neither the Company nor its Affiliate shall be obligated to advise
a Holder of the existence of the tax or the amount which it will be required to
withhold.

         7.4      WRITTEN AGREEMENT. Each Award shall be embodied in an Award
Agreement which shall be subject to the terms and conditions of the Plan and
shall be signed by the Holder and an executive officer of the Company, other
than the Holder, on behalf of the Company. The Award Agreement may contain any
other provisions that the Committee in its discretion shall deem advisable which
are not inconsistent with the terms of the Plan.

         7.5      INDEMNIFICATION OF THE COMMITTEE. The Company shall indemnify
each present and future member of the Committee against, and each member of the
Committee shall be entitled without further action on his or her part to
indemnity from the Company for, all expenses (including attorney's fees, the
amount of judgments and the amount of approved settlements

                                       9
<PAGE>
made with a view to the curtailment of costs of litigation, other than amounts
paid to the Company itself) reasonably incurred by such member in connection
with or arising out of any action, suit or proceeding in which such member may
be involved by reason of such member being or having been a member of the
Committee, whether or not he or she continues to be a member of the Committee at
the time of incurring the expenses, including, without limitation, matters as to
which such member shall be finally adjudged in any action, suit or proceeding to
have been negligent in the performance of such member's duty as a member of the
Committee. However, this indemnity shall not include any expenses incurred by
any member of the Committee in respect of matters as to which such member shall
have been guilty of gross negligence, willful misconduct, fraud or dishonesty in
the performance of his duty as a member of the Committee. In addition, no right
of indemnification under the Plan shall be available to or enforceable by any
member of the Committee unless, within 60 days after institution of any action,
suit or proceeding, such member shall have offered the Company, in writing, the
opportunity to handle and defend same at its own expense. This right of
indemnification shall inure to the benefit of the heirs, executors or
administrators of each member of the Committee and shall be in addition to all
other rights to which a member of the Committee may be entitled as a matter of
law, contract or otherwise.

         7.6      GENDER. If the context requires, words of one gender when used
in the Plan shall include the other and words used in the singular or plural
shall include the other.

         7.7      HEADINGS. Headings of Articles and Sections are included for
convenience of reference only and do not constitute part of the Plan and shall
not be used in construing the terms of the Plan.

         7.8      OTHER COMPENSATION PLANS. The adoption of the Plan shall not
affect any other option, incentive or other compensation or benefit plans in
effect for the Company or any of its Affiliates, nor shall the Plan preclude the
Company from establishing any other forms of incentive compensation arrangements
for Employees.

         7.9      OTHER AWARDS. The grant of an Award shall not confer upon the
Holder the right to receive any future or other Awards under the Plan, whether
or not Awards may be granted to similarly situated Holders, or the right to
receive future Awards upon the same terms or conditions as previously granted.

         7.10     EXERCISE OF CORPORATE POWERS. The existence of outstanding
Awards shall not affect in any way the right or power of the Company or its
shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company's capital structure or its
business, any merger, amalgamation or consolidation of the Company, any issue of
debt or equity securities, including, without limitation, preferred or prior
preference shares ahead of or affecting the Shares, the dissolution or
liquidation of the Company, any sale, lease, exchange or other disposition of
all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

         7.11     PERSONS RESIDING OUTSIDE OF THE UNITED STATES. Notwithstanding
any provision of the Plan to the contrary, in order to comply with the laws in
other countries in which the

                                       10
<PAGE>
Company and its Affiliates operate or have Employees, the Committee, in its sole
discretion, shall have the power and authority to:

         (a)      determine which Affiliates shall be covered by the Plan;

         (b)      determine which persons employed outside the United States are
                  eligible to participate in the Plan;

         (c)      amend or vary the terms of the Plan and the terms and
                  conditions of any Award granted to persons who reside outside
                  the United States; and

         (d)      take any action, before or after an Award is made, that it
                  deems advisable to obtain or comply with any necessary local
                  government regulatory exemptions or approvals.

         Notwithstanding the above, the Committee may not take any actions
hereunder, and no Awards shall be granted, that would violate the Exchange Act,
the Code, any securities law or governing statute or any other applicable law,
including, without limitation, the rules and regulations of any stock exchange
on which the Shares are then traded.

         7.12     GOVERNING LAW. The provisions of the Plan shall be construed,
administered and governed under the laws of the State of Texas without regard to
its principles of conflict of laws.

                                       11
<PAGE>

                         WEATHERFORD INTERNATIONAL LTD.
                        RESTRICTED SHARE AWARD AGREEMENT

THIS RESTRICTED SHARE AGREEMENT (this "Agreement") is made and entered into by
and between Weatherford International Ltd., a Bermuda exempted company (the
"Company"), and _______________ (the "Holder") on this ______ day of
______________, 200__ pursuant to the Weatherford International Ltd. Restricted
Share Plan (the "Plan"), which is incorporated by reference herein in its
entirety.

WHEREAS, the Company desires to grant to the Holder __________ shares (the
"Shares") of the Company's common shares, par value US$1.00 per share, subject
to the terms and conditions of this Agreement, with a view to increasing the
Holder's equity interest in the Company; and

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

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

1.       DEFINITIONS. For purposes of this Agreement, the following terms shall
         have the meanings indicated:

         (a)      "Forfeiture Restrictions" shall mean any prohibitions and
                  restrictions set forth herein or in the Plan with respect to
                  the sale or other disposition of the Shares and the obligation
                  to forfeit and surrender such Shares to the Company.

         (b)      "Restricted Shares" shall mean Shares that are subject to the
                  Forfeiture Restrictions under this Agreement or the Plan.

     Capitalized terms not otherwise defined in this Agreement shall have the
     meanings given to such terms in the Plan.

2.       GRANT OF RESTRICTED SHARES. On the date of this Agreement, the Company
         shall cause to be transferred to the Holder ___________ Shares as
         Restricted Shares. A certificate evidencing the Restricted Shares shall
         be issued by the Company in the Holder's name, pursuant to which the
         Holder shall have, except for the Forfeiture Restrictions, all of the
         rights of a shareholder of the Company with respect to such Restricted
         Shares, including, without limitation, the right to receive any
         dividends or distributions allocable thereto and all voting rights
         appurtenant thereto. Upon issuance, the certificate shall be delivered
         to the Secretary of the Company or to such other depository as may be
         designated by the Committee under the Plan as a depository for
         safekeeping until the forfeiture of such Restricted Shares occurs or
         the Forfeiture Restrictions lapse. On the date of this Agreement, the
         Holder shall deliver to the Company a share transfer form (the "Share
         Transfer Form"), endorsed in blank, relating to the Restricted Shares.
         The Company and the Holder agree that this Agreement, together with the
         Plan and the Employment Agreement between the Company and the Holder
         dated ______________ (the "Employment Agreement"), sets forth the
         complete terms of the Award and that the Award shall be subject to the
         terms of the Employment Agreement.

3.       TRANSFER RESTRICTIONS. Except as specified herein or in the Plan, the
         Restricted Shares may not be sold, assigned, pledged, exchanged,
         hypothecated or otherwise transferred, encumbered or disposed of. Any
         such attempted sale, assignment, pledge, exchange, hypothecation,
         transfer, encumbrance or disposition in violation of this Agreement or
         the Plan shall be void and the

                                       12
<PAGE>

         Company shall not be bound thereby. Further, the Shares may not be sold
         or otherwise disposed of in any manner that would constitute a
         violation of any Bermuda or U.S. applicable federal or state securities
         laws. Accordingly, the Holder also agrees (i) that the Company may
         refuse to register the transfer of the Shares, including the Restricted
         Shares, in the register of members of the Company if such proposed
         transfer is in violation of this Agreement or the Plan or would in the
         opinion of counsel to the Company constitute a violation of any
         applicable Bermuda or U.S. securities laws and (ii) that the Company
         may give related instructions to its transfer agent, if any, to stop
         registration of the transfer of the Shares, including the Restricted
         Shares.

4.       VESTING. Except as specified in this Section 4, the Shares shall be
         subject to Forfeiture Restrictions. The Forfeiture Restrictions shall
         lapse on the third anniversary of the date hereof provided that the
         Shares have not been forfeited to the Company prior to such date.
         Notwithstanding the foregoing, (a) if (i) the Holder's employment or
         affiliation relationship with the Company and its Affiliates is
         terminated prior to the third anniversary of the date hereof (A) due to
         the death or Disability of the Holder, (B) by the Holder for Good
         Reason (applicable only if such term and manner of termination is
         specifically provided for in the Employment Agreement) or (C) by the
         Company for any reason other than Cause (as defined in the Employment
         Agreement), or (ii) there is a Change in Control, then, in any such
         event, all Forfeiture Restrictions shall immediately lapse with respect
         to all Shares subject to Forfeiture Restrictions, or (b) if the Holder
         retires in good standing from the employ of the Company or its
         Affiliates under the then established rules of the Company and its
         Affiliates prior to the third anniversary of the date hereof, all
         Forfeiture Restrictions shall immediately lapse with respect to a
         number of the Shares subject to Forfeiture Restrictions equal to a
         fraction, the numerator of which is the Holder's total whole years of
         service since the date of this Agreement and the denominator of which
         is three. If, prior to the third anniversary of the date hereof, the
         Holder's employment or affiliation relationship with the Company and
         its Affiliates terminates for any reason other than the Holder's death,
         Disability or retirement, or is terminated by the Holder for any reason
         other than Good Reason or by the Company for Cause, the Forfeiture
         Restrictions shall not lapse and the Restricted Shares shall be
         forfeited to the Company. If the Holder's employment or affiliation
         relationship with the Company and its Affiliates terminates before the
         third anniversary of the date hereof by reason of the Holder's
         retirement, the Forfeiture Restrictions that do not immediately lapse
         pursuant to the provisions of this Section 4 shall not lapse, and any
         Restricted Shares with respect to which the Forfeiture Restrictions
         have not lapsed shall be forfeited to the Company. Upon the lapse of
         the Forfeiture Restrictions and the satisfaction by the Holder of any
         liability arising under Section 6 of this Agreement, the Company shall
         deliver to the Holder a share certificate representing the Shares, and
         the Shares shall be transferable by the Holder (except to the extent
         that any proposed transfer would, in the opinion of counsel to the
         Company, constitute a violation of applicable securities laws). In the
         event any Restricted Shares are forfeited to the Company pursuant to
         this Agreement, the forfeiture will be accomplished by the transfer of
         such Restricted Shares to a subsidiary of the Company pursuant to the
         Share Transfer Form and the payment by such subsidiary to the Holder of
         $1.00 in consideration thereof. For purposes of this Agreement,
         "Disability" shall have the meaning given such term in the Employment
         Agreement.

5.       CAPITAL ADJUSTMENTS AND REORGANIZATIONS. The existence of the
         Restricted Shares shall not affect in any way the right or power of the
         Company or its shareholders to make or authorize any or all
         adjustments, recapitalizations, reorganizations or other changes in the
         Company's capital structure or its business, any merger, amalgamation
         or consolidation of the Company, any issue of debt or equity
         securities, including, without limitation, preferred or prior
         preference shares ahead of or affecting the Shares, the dissolution or
         liquidation of the Company, or any sale, lease, exchange or other
         disposition of all or any part of its assets or business, or any other
         corporate act or proceeding, whether of a similar character or
         otherwise.

                                       13
<PAGE>

6.       TAX WITHHOLDING. To the extent that the receipt of the Restricted
         Shares or the lapse of any Forfeiture Restrictions results in income to
         the Holder for federal, state or local income or employment tax
         purposes with respect to which the Company or any of its Affiliates has
         a withholding obligation, the Holder shall deliver to the Company or
         such Affiliate at the time of such receipt or lapse, as the case may
         be, such amount of money as the Company or such Affiliate may require
         to meet its obligation under applicable tax laws or regulations, and,
         if the Holder fails to do so, the Company is authorized to withhold
         from the Shares or from any cash or share remuneration then or
         thereafter payable to the Holder any tax required to be withheld by
         reason of such resulting income.

7.       EMPLOYMENT OR AFFILIATION RELATIONSHIP. For purposes of this Agreement,
         the Holder shall be considered to be in the employment of , or
         affiliated with, the Company or its Affiliates as long as the Holder
         has an employment or affiliation relationship with the Company or its
         Affiliates. The Committee shall determine any questions as to whether
         and when there has been a termination of such employment or affiliation
         relationship, and the cause of such termination, under the Plan and the
         Committee's determination shall be final and binding on all persons.

8.       SECTION 83(b) ELECTION. The Holder shall not exercise the election
         permitted under section 83(b) of the Internal Revenue Code of 1986, as
         amended, with respect to the Restricted Shares without the written
         approval of the Chief Financial Officer of Weatherford International
         Ltd. If the Chief Financial Officer of Weatherford International Ltd.
         permits the election, the Holder shall timely pay the Company or its
         Affiliate the amount necessary to satisfy the Company's or its
         Affiliate's attendant tax withholding obligations, if any.

9.       NOT AN EMPLOYMENT OR AFFILIATION AGREEMENT. This Agreement is not an
         employment or affiliation agreement, and no provision of this Agreement
         shall be construed or interpreted to create an employment relationship
         between the Holder and the Company or any of its Affiliates or
         guarantee the right to remain employed by or affiliated with the
         Company or any of its Affiliates for any specified term.

10.      NOTICES. Any notice, instruction, authorization, request or demand
         required hereunder shall be in writing, and shall be delivered either
         by personal delivery, by facsimile, by certified or registered mail,
         return receipt requested, or by courier or delivery service, addressed
         to the Company at the address indicated beneath its signature on the
         execution page of this Agreement, and to the Holder at the Holder's
         address indicated in the Company's register of members, or at such
         other address and number as a party shall have previously designated by
         written notice given to the other party in the manner hereinabove set
         forth. Notices shall be deemed given when received, if sent by
         facsimile (confirmation of such receipt by confirmed facsimile
         transmission being deemed receipt of communications sent by facsimile
         means); and when delivered and receipted for (or upon the date of
         attempted delivery where delivery is refused), if hand-delivered, sent
         by express courier or delivery service, or sent by certified or
         registered mail, return receipt requested.

11.      AMENDMENT AND WAIVER. This Agreement may be amended, modified or
         superseded only by written instrument executed by the Company and the
         Holder. Only a written instrument executed and delivered by the party
         waiving compliance hereof shall make any waiver of the terms or
         conditions. Any waiver granted by the Company shall be effective only
         if executed and delivered by a duly authorized executive officer of the
         Company other than the Holder. The failure of any party at any time or
         times to require performance of any provisions hereof shall in no
         manner effect the right to enforce the same. No waiver by any party of
         any term or condition, or the breach of any term or condition contained
         in this Agreement, in one or more instances, shall be construed as a
         continuing waiver of any such condition or breach, a waiver of any
         other condition, or the breach of any other term or condition.

                                       14
<PAGE>

12.      GOVERNING LAW AND SEVERABILITY. This Agreement shall be governed by the
         laws of the State of Texas without regard to its conflicts of law
         provisions. The invalidity of any provision of this Agreement shall not
         affect any other provision of this Agreement, which shall remain in
         full force and effect.

13.      SUCCESSORS AND ASSIGNS. Subject to the limitations which this Agreement
         and the Plan impose upon the transferability of the Shares, this
         Agreement shall bind, be enforceable by and inure to the benefit of the
         Company and its successors and assigns, and to the Holder, his
         permitted assigns and, upon the Holder's death, the Holder's estate and
         beneficiaries thereof (whether by will or the laws of descent and
         distribution), executors, administrators, agents, and legal and
         personal representatives.

14.      COUNTERPARTS. This Agreement may be executed in two or more
         counterparts, each of which shall be an original for all purposes but
         all of which taken together shall constitute but one and the same
         instrument.

                                       15
<PAGE>

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

                                    COMPANY:

                                    WEATHERFORD INTERNATIONAL LTD.

                                    By:_________________________________________

                                       _________________________________________

                                       515 Post Oak Blvd., Ste. 600
                                       Houston, TX 77027
                                       Attn: General Counsel
                                       Facsimile: (713) 693-4484

                                    HOLDER:

                                    ____________________________________________
                                    _________________________
                                    _________________________
                                    _________________________

                                       16
<PAGE>

                           Irrevocable Share Transfer

         KNOW ALL MEN BY THESE PRESENTS, that the undersigned, for and in
consideration of $1.00, the receipt of which is hereby acknowledged, has
bargained, sold, assigned and transferred and by these presents does bargain,
sell, assign and transfer unto ________________________________, _____________
common shares of Weatherford International Ltd., a Bermuda exempted company (the
"Company"), standing in the undersigned's name in the register of members of the
Company represented by Certificate No. _____; AND subject to and in accordance
with the Restricted Share Award Agreement dated __________________ between the
Company and the undersigned, the undersigned does hereby constitute and appoint
_____________________________________ its true and lawful attorney, IRREVOCABLY,
for the undersigned and in his or her name and stead, to sell assign, transfer,
hypothecate, pledge and make over all or any part of the said shares and for
that purpose to make and execute all necessary acts of assignment and transfer
thereof, and to substitute one or more persons with like full power, hereby
ratifying and confirming all that said attorney or his substitutes shall
lawfully do by virtue hereof.

         IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand on
this ______ day of _______________.

                                              _________________________
                                              _________________________

                                       17

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