Document:

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                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and M. David Colley (the
"Employee").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Employee to substantially perform the Employee's duties with the Company (other
than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Employee pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Employee by the Board which
specifically identifies the manner in which the Employee has not substantially
performed the Employee's duties, or

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

                  No act, or failure to act, on the part of the Employee shall
be considered "willful" unless it is done, or omitted to be done, by the
Employee in bad faith or without reasonable belief that the Employee's action or
omission was in the best interests of the Company. Any act, or failure to act,
based upon authority given pursuant to a resolution duly adopted by the Board or
upon the instructions of the Chief Executive Officer or of a more senior officer
of the Company or based upon the advice of counsel for the Company (which may be
the General Counsel or other counsel employed by the Company or its
subsidiaries) shall be conclusively presumed to be done, or omitted to be done,
by the Employee in good faith and in the best interests of the Company. The
cessation of employment of the Employee shall not be deemed to be for Cause
unless and until there shall have been delivered to the Employee a copy of a

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resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Board at a meeting of the Board called and held
for such purpose (after reasonable notice is provided to the Employee, and the
Employee is given an opportunity, together with counsel, to be heard before the
Board), finding that, in the good faith opinion of the Board, the Employee is
guilty of the conduct described in subparagraph (i) or (ii) above, and
specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior to the Corporate Transaction
         and (C) at least two-thirds of the members of the board of directors

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         (or other governing body) of the entity resulting from such Corporate
         Transaction were members of the Incumbent Board at the time of the
         approval of such Corporate Transaction; or

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries

                  (g)      "Disability" shall mean the absence of the Employee
from performance of the Employee's duties with the Company on a substantial
basis for 180 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Employee
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Employee of any
         position, authority, duties or responsibilities inconsistent with the
         Employee's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Employee;

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

                           (iii)    any failure by the Company to continue to
         provide the Employee with benefits currently enjoyed by the Employee
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Employee of any fringe benefits or perquisites currently enjoyed by the
         Employee;

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Employee that the Employment Period shall
         not be extended.

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

         For purposes of this Agreement, any good faith determination of "Good
Reason" made by the Employee shall be conclusive.

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

                  2.       Employment Period. The Company hereby agrees that the
Company will continue the Employee in its employ, and the Employee hereby agrees
to remain in the employ of the Company subject to the terms and conditions of
this Agreement during the Employment Period. During the Employment Period, the
Employee, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Employee) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Employee's rights under
this Agreement. The Employee shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Employee has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

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         3.       Terms of Employment.

                  (a)      Position and Duties.

                           (i)      During the Employment Period, (A) the
         Employee's position (including status, offices, titles, reporting
         requirements, authority, duties and responsibilities) shall be Vice
         President - Global Manufacturing and Information Technology of the
         Company and (B) the Employee's services shall be performed at the
         Company's executive office in Houston, Texas or other locations less
         than 35 miles from such location.

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Employee shall be eligible
         for an annual bonus for each fiscal year ending during the Employment
         Period on the same basis as other executive officers under the
         Company's executive officer annual incentive program. Each such Annual
         Bonus shall be paid no later than the end of the third month of the
         fiscal year next following the fiscal year for which the Annual Bonus
         is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Employee shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Employee with
         incentive opportunities (measured with respect to both regular and
         special incentive opportunities, to the extent, if any, that such
         distinction is applicable), savings opportunities and retirement
         benefit opportunities, in each case, less favorable, in the aggregate,

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         than the most favorable of those provided by the Company and its
         affiliated companies for the Employee under such plans, practices,
         policies and programs as in effect on the date hereof. As used in this
         Agreement, the term "affiliated companies" shall include any company
         controlled by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Employee shall be entitled to (A) a monthly car allowance
         and (B) such other fringe benefits in accordance with the most
         favorable plans, practices, programs and policies of the Company and
         its affiliated companies in effect for the Employee on the date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Employee
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Employee and Weatherford
International, Inc. or its affiliates (the "Prior Agreements"). As a result, the
Employee and the Company agree that any and all Prior Agreements are hereby
terminated and of no further force and effect.

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         4.       Termination of Employment.

                  (a)      Death or Disability. The Employee's employment shall
terminate automatically upon the Employee's death during the Employment Period.
If the Company determines in good faith that the Disability of the Employee has
occurred during the Employment Period, it may provide the Employee with written
notice in accordance with Section 11(b) of this Agreement of its intention to
terminate the Employee's employment. In such event, the Employee's employment
with the Company shall terminate effective 30 days after receipt of such notice
by the Employee (the "Disability Effective Date"), provided that within the
30-day period after such receipt, the Employee shall not have returned to
full-time performance of the Employee's duties. In addition, if a physician
selected by the Employee determines that the Disability of the Employee has
occurred, the Employee (or his representative) may provide the Company with
written notice in accordance with Section 11(b) of this Agreement of the
Employee's intention to terminate his employment. In such event, the Disability
Effective Date shall be 30 days after receipt of such notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Employee for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Employee or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Employee or the Company, respectively, from asserting
such fact or circumstance in enforcing the Employee's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

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         5.       Obligations of the Company Upon Termination.

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

                           (i)      The Company shall pay to the Employee (or
         Employee's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Employee's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Employee in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Employee under any
                  deferred compensation plan sponsored by the Company (together
                  with any accrued interest or earnings thereon), and any
                  accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to two times the
                  sum of (i) the highest Annual Base Salary received by the
                  Employee in the last five years ended prior to the Termination
                  Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Employee under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and any other deferred compensation plan (excluding the
                  Company's ERP (as defined below)) during the 12-month period
                  immediately preceding the month of the Employee's Date of
                  Termination multiplied by two, such amount to be grossed up so
                  that the amount the Employee actually receives after payment
                  of any federal or state taxes payable thereon equals the
                  amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Employee on an annualized basis
                  multiplied by two.

                           (ii)     For a period of two years from the
         Employee's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Employee and the
         Employee's family equal to those which would have been provided to them
         in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Employee's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Employee (or Employee's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Employee
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Employee or
         the Employee's family is precluded from continuing participation in any
         of the foregoing plans,

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         programs, practices or policies for any portion of such two year
         period, the Employee shall be provided with the after-tax economic
         equivalent of the benefits that would have been provided under such
         plans, programs, practices and policies for the portion of such two
         year period in which the Employee or Employee's family is unable to
         participate for the full period of three years.

                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Employee, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Employee any
         other amounts or benefits required to be paid or provided or which the
         Employee is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (v)      If the Employee's employment is terminated
         by reason of the Employee's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Employee's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Employee's death.

                           (vi)     If the Employee's employment is terminated
         by reason of the Employee's Disability, then Other Benefits (as defined
         in this Section) shall also include, without limitation, and the
         Employee shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Employee's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                 (b)      Cause. If the Employee's employment is terminated for
Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Employee, other than the obligation to pay to the
Employee (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Employee and (z) Other
Benefits, in each case to the extent theretofore unpaid.

                  (c)      Termination by Employee Other Than for Good Reason.
If the Employee voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Employee's employment
shall terminate without further obligations to the Employee, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Employee
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Employee's continuing or future participation in any
plan, program, policy or practice provided by the

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Company or any of its affiliated companies and for which the Employee may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Employee may have under any contract or agreement with the Company or any of its
affiliated companies. Except as otherwise provided herein, amounts which are
vested benefits, which vest according to the terms of this Agreement or which
the Employee is otherwise entitled to receive under any plan, policy, practice
or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement. If the Employee has any other employment or similar agreement with
the Company at the Date of Termination, the Employee agrees that he shall have
the right to receive all of the benefits provided under this Agreement or such
other agreement, whichever one, in its entirety, the Employee chooses, but not
both agreements, and when the Employee has made such election, the other
agreement shall be superseded in its entirety and shall be of no further force
and effect. The Employee also agrees that to the extent he may be eligible for
any severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Employee shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Employee Retirement Plan ("ERP"), if the Employee's employment is terminated for
any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the Employee
may reasonably incur as a result of any contest (regardless of the outcome
thereof) by the Company or the Employee of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereto (including as a result of any contest by the Employee about the amount
of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Employee (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by the
Employee with respect to such excise tax (such excise tax, together with any

                                       10
<PAGE>

such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Employee shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Employee of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Employee (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Employee within 15 business days after the receipt of notice from the Employee
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Employee shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined
pursuant to this Section 8, shall be paid by the Company to the Employee within
five days after the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm, absent manifest error, shall be binding
upon the Company and the Employee. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which
will not have been made by the Company should have been made ("Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 8(c) and the Employee
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Employee.

                  (c)      The Employee shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Employee is informed in writing of such claim, and shall apprise the Company
of the nature of such claim and the date on which such claim is requested to be
paid. The Employee shall not pay such claim prior to the expiration of the
30-day period following the date on which he gives such notice to the Company
(or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Employee in writing
prior to the expiration of such period that it desires to contest such claim,
the Employee shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                                       11
<PAGE>

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Employee to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and the Employee agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Employee to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Employee, on an interest-free basis and shall indemnify and hold
the Employee harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Employee with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Employee shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Employee of an amount
advanced by the Company pursuant to Section 8(c), the Employee becomes entitled
to receive any refund with respect to such claim, the Employee shall (subject to
the Company's complying with the requirements of Section 8(c)) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Employee of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Employee shall not be entitled to any refund with
respect to such claim and the Company does not notify the Employee in writing of
its intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

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

                                       12
<PAGE>

prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an
asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Employee under
this Agreement.

         10.      Successors.

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

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

         11.      Miscellaneous.

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

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

                  If to the Employee:        M. David Colley
                                             515 Post Oak Blvd., Suite 600
                                             Houston, Texas 77027

                  If to the Company:         Weatherford International Ltd.
                                             515 Post Oak Blvd., Suite 600
                                             Houston, Texas 77027
                                             Attention: General Counsel

                                       13
<PAGE>

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

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

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

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

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

                                       14
<PAGE>

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

                                             /s/ M. David Colley
                                ------------------------------------------------
                                                M. David Colley

                                WEATHERFORD INTERNATIONAL LTD.

                                By:        /s/ Bernard J. Duroc-Danner
                                    --------------------------------------------
                                             Bernard J. Duroc-Danner
                                   Chairman, President & Chief Executive Officer

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and E. Lee Colley III (the
"Executive").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Executive to substantially perform the Executive's duties with the Company
(other than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Executive pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially
performed the Executive's duties, or

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

                  No act, or failure to act, on the part of the Executive shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more
senior officer of the Company or based upon the advice of counsel for the
Company (which may be the General Counsel or other counsel employed by the
Company or its subsidiaries) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company. The cessation of employment of the Executive shall not be

<PAGE>

deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to the Executive, and the Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, the Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior

                                       17
<PAGE>

         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

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries.

                  (g)      "Disability" shall mean the absence of the Executive
from performance of the Executive's duties with the Company on a substantial
basis for 120 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Executive of any
         position, authority, duties or responsibilities inconsistent with the
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Executive;

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

                           (iii)    any failure by the Company to continue to
         provide the Executive with benefits currently enjoyed by the Executive
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Executive of any fringe benefits or perquisites currently enjoyed by
         the Executive;

                                       18
<PAGE>

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Executive that the Employment Period shall
         not be extended.

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

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

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

         2.       Employment Period. The Company hereby agrees that the Company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company subject to the terms and conditions of this
Agreement during the Employment Period. During the Employment Period, the
Executive, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Executive) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Executive's rights under
this Agreement. The Executive shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Executive has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

                                       19
<PAGE>

         3.       Terms of Employment.

                  (a)      Position and Duties.

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

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Executive shall be
         eligible for an annual bonus for each fiscal year ending during the
         Employment Period on the same basis as other executive officers under
         the Company's executive officer annual incentive program. Each such
         Annual Bonus shall be paid no later than the end of the third month of
         the fiscal year next following the fiscal year for which the Annual
         Bonus is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Executive shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Executive with
         incentive opportunities (measured with respect to both regular and
         special

                                       20
<PAGE>

         incentive opportunities, to the extent, if any, that such distinction
         is applicable), savings opportunities and retirement benefit
         opportunities, in each case, less favorable, in the aggregate, than the
         most favorable of those provided by the Company and its affiliated
         companies for the Executive under such plans, practices, policies and
         programs as in effect on the date hereof. As used in this Agreement,
         the term "affiliated companies" shall include any company controlled
         by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to (A) at Executive's option, a
         monthly car allowance or use of an automobile and (B) such other fringe
         benefits (including, without limitation, payment of club dues,
         financial planning services, cellular telephone, mobile email, annual
         physical examinations, payment of professional fees and professional
         taxes and payment of related expenses, as appropriate) in accordance
         with the most favorable plans, practices, programs and policies of the
         Company and its affiliated companies in effect for the Executive on the
         date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Executive
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Executive and Weatherford
International, Inc. or its Affiliates (the "Prior Agreements"). As a result, the
Executive and the Company agree that the Prior Agreements are hereby terminated
and of no further force and effect.

         4.       Termination of Employment.

                  (a)      Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period, it may provide the Executive

                                       21
<PAGE>

with written notice in accordance with Section 11(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective 30 days after
receipt of such notice by the Executive (the "Disability Effective Date"),
provided that within the 30-day period after such receipt, the Executive shall
not have returned to full-time performance of the Executive's duties. In
addition, if a physician selected by the Executive determines that the
Disability of the Executive has occurred, the Executive (or his representative)
may provide the Company with written notice in accordance with Section 11(b) of
this Agreement of the Executive's intention to terminate his employment. In such
event, the Disability Effective Date shall be 30 days after receipt of such
notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

         5.       Obligations of the Company Upon Termination.

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

                                       22
<PAGE>

                           (i)      The Company shall pay to the Executive (or
         Executive's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Executive's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Executive in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Executive under
                  any deferred compensation plan sponsored by the Company
                  (together with any accrued interest or earnings thereon), and
                  any accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to three times the
                  sum of (i) the highest Annual Base Salary received by the
                  Executive in the last five years ended prior to the
                  Termination Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Executive under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and all other deferred compensation plans (excluding
                  the Company's ERP (as defined below)) during the 12-month
                  period immediately preceding the month of the Executive's Date
                  of Termination multiplied by three, such amount to be grossed
                  up so that the amount the Executive actually receives after
                  payment of any federal or state taxes payable thereon equals
                  the amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Executive on an annualized basis
                  multiplied by three.

                           (ii)     For a period of three years from the
         Executive's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Executive and the
         Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive (or Executive's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Executive
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Executive or
         the Executive's family is precluded from continuing participation in
         any of the foregoing plans, programs, practices or policies for any
         portion of such three year period, the Executive shall be provided with
         the after-tax economic equivalent of the benefits that would have been
         provided under such plans, programs, practices and policies for the
         portion of such three year period in which the Executive or Executive's
         family is unable to participate for the full period of three years.

                                       23
<PAGE>

                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Executive, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     The Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services, the scope
         and provider of which shall be selected by the Executive in his sole
         discretion.

                           (v)      All country club memberships, luncheon clubs
         and other memberships which the Company was providing for the
         Executive's or his family's use prior to the time that the Notice of
         Termination is given shall be transferred and assigned to the Executive
         at no cost to the Executive, the cost of transfer, if any, to be borne
         by the Company.

                           (vi)     At the Executive's sole discretion, the
         Company shall either transfer to the Executive ownership and title to
         the Executive's company car at no cost (other than any individual
         income taxes owed by the Executive) to the Executive or, if the
         Executive receives a monthly car allowance in lieu of a Company car,
         pay the Executive a lump sum in cash within 30 days after the
         Executive's Date of Termination equal to the Executive's annual car
         allowance multiplied by three.

                           (vii)    To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (viii)   If the Executive's employment is terminated
         by reason of the Executive's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Executive's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Executive's death.

                           (ix)     If the Executive's employment is terminated
         by reason of the Executive's Disability, then Other Benefits (as
         defined in this Section) shall also include, without limitation, and
         the Executive shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Executive's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Executive's employment is terminated
for Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the
Executive (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Executive and (z) Other
Benefits, in each case to the extent theretofore unpaid.

                                       24
<PAGE>

                  (c)      Termination by Executive Other Than for Good Reason.
If the Executive voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Executive's employment
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Executive
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Except as otherwise provided herein, amounts which are vested benefits, which
vest according to the terms of this Agreement or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement. If the
Executive has any other employment or similar agreement with the Company at the
Date of Termination, the Executive agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not both
agreements, and when the Executive has made such election, the other agreement
shall be superseded in its entirety and shall be of no further force and effect.
The Executive also agrees that to the extent he may be eligible for any
severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Executive Retirement Plan ("ERP"), if the Executive's employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereto (including as

                                       25
<PAGE>

a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax or other
tax imposed by Section 4999 of the Code (and any successor provisions or
sections to Section 4999) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm, absent manifest error,
shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                  (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Executive is informed in writing of such claim, and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice
to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the

                                       26
<PAGE>

Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

                                       27
<PAGE>

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

         9.       Confidential Information. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies, provided that it shall not apply to information which is
or shall become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement), information
that is developed by the Executive independently of such information, or
knowledge or data or information that is disclosed to the Executive by a third
party under no obligation of confidentiality to the Company. After termination
of the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company or as may otherwise be required by law
or legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         10.      Successors.

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

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

                                       28
<PAGE>

         11.      Miscellaneous.

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

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

                  If to the Executive:       E. Lee Colley III
                                             515 Post Oak Blvd., Suite 600
                                             Houston, Texas 77027

                  If to the Company:         Weatherford International Ltd.
                                             515 Post Oak Blvd., Suite 600
                                             Houston, Texas 77027
                                             Attention: General Counsel

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

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

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

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

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

                                       29
<PAGE>

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

                                              /s/ E. Lee Colley III
                                ------------------------------------------------
                                                E. Lee Colley III

                                WEATHERFORD INTERNATIONAL LTD.

                                By:         /s/ Bernard J. Duroc-Danner
                                   ---------------------------------------------
                                              Bernard J. Duroc-Danner
                                   Chairman, President & Chief Executive Officer

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and Bernard J. Duroc-Danner
(the "Executive").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
         Executive to substantially perform the Executive's duties with the
         Company (other than any such failure resulting from incapacity due to
         physical or mental illness or anticipated failure after the issuance of
         a Notice of Termination for Good Reason by the Executive pursuant to
         Section 4(d)), after a written demand for substantial performance is
         delivered to the Executive by the Board which specifically identifies
         the manner in which the Executive has not substantially performed the
         Executive's duties, or

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

                  No act, or failure to act, on the part of the Executive shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more
senior officer of the Company or based upon the advice of counsel for the
Company (which may be the General Counsel or other counsel employed by the
Company or its subsidiaries) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company. The cessation of employment of the Executive shall not be

<PAGE>

deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to the Executive, and the Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, the Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior

                                       32
<PAGE>

         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

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries.

                  (g)      "Disability" shall mean the absence of the Executive
from performance of the Executive's duties with the Company on a substantial
basis for 120 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Executive of any
         position, authority, duties or responsibilities inconsistent with the
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Executive;

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

                           (iii)    any failure by the Company to continue to
         provide the Executive with benefits currently enjoyed by the Executive
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Executive of any fringe benefits or perquisites currently enjoyed by
         the Executive;

                                       33
<PAGE>

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Executive that the Employment Period shall
         not be extended.

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

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

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

         2.       Employment Period. The Company hereby agrees that the Company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company subject to the terms and conditions of this
Agreement during the Employment Period. During the Employment Period, the
Executive, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Executive) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Executive's rights under
this Agreement. The Executive shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Executive has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

                                       34
<PAGE>

         3.       Terms of Employment.

                  (a)      Position and Duties.

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

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Executive shall be
         eligible for an annual bonus for each fiscal year ending during the
         Employment Period on the same basis as other executive officers under
         the Company's executive officer annual incentive program. Each such
         Annual Bonus shall be paid no later than the end of the third month of
         the fiscal year next following the fiscal year for which the Annual
         Bonus is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Executive shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Executive with
         incentive opportunities (measured with respect to both regular and
         special incentive opportunities, to the extent, if any, that such
         distinction is applicable), savings

                                       35
<PAGE>

         opportunities and retirement benefit opportunities, in each case, less
         favorable, in the aggregate, than the most favorable of those provided
         by the Company and its affiliated companies for the Executive under
         such plans, practices, policies and programs as in effect on the date
         hereof. As used in this Agreement, the term "affiliated companies"
         shall include any company controlled by, controlling or under common
         control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to (A) at Executive's option, a
         monthly car allowance or use of an automobile and (B) such other fringe
         benefits (including, without limitation, payment of club dues,
         financial planning services, cellular telephone, mobile email, annual
         physical examinations, payment of professional fees and professional
         taxes and payment of related expenses, as appropriate) in accordance
         with the most favorable plans, practices, programs and policies of the
         Company and its affiliated companies in effect for the Executive on the
         date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Executive
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Executive and Weatherford
International, Inc. or its Affiliates (the "Prior Agreements"). As a result, the
Executive and the Company agree that the Prior Agreements are hereby terminated
and of no further force and effect.

         4.       Termination of Employment.

         (a)      Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period, it may provide the Executive with written
notice in accordance with Section 11(b) of this Agreement of its intention to
terminate the

                                       36
<PAGE>

Executive's employment. In such event, the Executive's employment with the
Company shall terminate effective 30 days after receipt of such notice by the
Executive (the "Disability Effective Date"), provided that within the 30-day
period after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties. In addition, if a physician selected by
the Executive determines that the Disability of the Executive has occurred, the
Executive (or his representative) may provide the Company with written notice in
accordance with Section 11(b) of this Agreement of the Executive's intention to
terminate his employment. In such event, the Disability Effective Date shall be
30 days after receipt of such notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

         5.       Obligations of the Company Upon Termination.

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

                                       37
<PAGE>

                           (i)      The Company shall pay to the Executive (or
         Executive's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Executive's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Executive in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Executive under
                  any deferred compensation plan sponsored by the Company
                  (together with any accrued interest or earnings thereon), and
                  any accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to three times the
                  sum of (i) the highest Annual Base Salary received by the
                  Executive in the last five years ended prior to the
                  Termination Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Executive under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and all other deferred compensation plans (excluding
                  the Company's ERP (as defined below)) during the 12-month
                  period immediately preceding the month of the Executive's Date
                  of Termination multiplied by three, such amount to be grossed
                  up so that the amount the Executive actually receives after
                  payment of any federal or state taxes payable thereon equals
                  the amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Executive on an annualized basis
                  multiplied by three.

                           (ii)     For a period of three years from the
         Executive's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Executive and the
         Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive (or Executive's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Executive
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Executive or
         the Executive's family is precluded from continuing participation in
         any of the foregoing plans, programs, practices or policies for any
         portion of such three year period, the Executive shall be provided with
         the after-tax economic equivalent of the benefits that would have been
         provided under such plans, programs, practices and policies for the
         portion of such three year period in which the Executive or Executive's
         family is unable to participate for the full period of three years.

                                       38
<PAGE>

                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Executive, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     The Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services, the scope
         and provider of which shall be selected by the Executive in his sole
         discretion.

                           (v)      All country club memberships, luncheon clubs
         and other memberships which the Company was providing for the
         Executive's or his family's use prior to the time that the Notice of
         Termination is given shall be transferred and assigned to the Executive
         at no cost to the Executive, the cost of transfer, if any, to be borne
         by the Company.

                           (vi)     At the Executive's sole discretion, the
         Company shall either transfer to the Executive ownership and title to
         the Executive's company car at no cost (other than any individual
         income taxes owed by the Executive) to the Executive or, if the
         Executive receives a monthly car allowance in lieu of a Company car,
         pay the Executive a lump sum in cash within 30 days after the
         Executive's Date of Termination equal to the Executive's annual car
         allowance multiplied by three.

                           (vii)    To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (viii)   If the Executive's employment is terminated
         by reason of the Executive's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Executive's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Executive's death.

                           (ix)     If the Executive's employment is terminated
         by reason of the Executive's Disability, then Other Benefits (as
         defined in this Section) shall also include, without limitation, and
         the Executive shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Executive's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Executive's employment is terminated
for Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the
Executive (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Executive and (z) Other
Benefits, in each case to the extent theretofore unpaid.

                                       39
<PAGE>

                  (c)      Termination by Executive Other Than for Good Reason.
If the Executive voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Executive's employment
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Executive
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Except as otherwise provided herein, amounts which are vested benefits, which
vest according to the terms of this Agreement or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement. If the
Executive has any other employment or similar agreement with the Company at the
Date of Termination, the Executive agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not both
agreements, and when the Executive has made such election, the other agreement
shall be superseded in its entirety and shall be of no further force and effect.
The Executive also agrees that to the extent he may be eligible for any
severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Executive Retirement Plan ("ERP"), if the Executive's employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereto (including as

                                       40
<PAGE>

a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax or other
tax imposed by Section 4999 of the Code (and any successor provisions or
sections to Section 4999) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm, absent manifest error,
shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                  (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Executive is informed in writing of such claim, and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice
to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the

                                       41
<PAGE>

Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

                                       42
<PAGE>

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

         9.       Confidential Information. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies, provided that it shall not apply to information which is
or shall become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement), information
that is developed by the Executive independently of such information, or
knowledge or data or information that is disclosed to the Executive by a third
party under no obligation of confidentiality to the Company. After termination
of the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company or as may otherwise be required by law
or legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         10.      Successors.

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

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

                                       43
<PAGE>

         11.      Miscellaneous.

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

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

                  If to the Executive:      Bernard J. Duroc-Danner
                                            515 Post Oak Blvd., Suite 600
                                            Houston, Texas 77027

                  If to the Company:        Weatherford International Ltd.
                                            515 Post Oak Blvd., Suite 600
                                            Houston, Texas 77027
                                            Attention: General Counsel

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

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

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

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

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

                                       44
<PAGE>

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

                                           /s/ Bernard J. Duroc-Danner
                                    --------------------------------------------
                                               Bernard J. Duroc-Danner

                                    WEATHERFORD INTERNATIONAL LTD.

                                    By:          /s/ Burt M. Martin
                                        ----------------------------------------
                                                     Burt M. Martin
                                        Senior Vice President & General Counsel

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and Stuart E. Ferguson (the
"Executive").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Executive to substantially perform the Executive's duties with the Company
(other than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Executive pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially
performed the Executive's duties, or

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

                  No act, or failure to act, on the part of the Executive shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more
senior officer of the Company or based upon the advice of counsel for the
Company (which may be the General Counsel or other counsel employed by the
Company or its subsidiaries) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company. The cessation of employment of the Executive shall not be

<PAGE>

deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to the Executive, and the Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, the Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior

                                       47
<PAGE>

         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

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries.

                  (g)      "Disability" shall mean the absence of the Executive
from performance of the Executive's duties with the Company on a substantial
basis for 120 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Executive of any
         position, authority, duties or responsibilities inconsistent with the
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Executive;

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

                           (iii)    any failure by the Company to continue to
         provide the Executive with benefits currently enjoyed by the Executive
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Executive of any fringe benefits or perquisites currently enjoyed by
         the Executive;

                                       48
<PAGE>

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Executive that the Employment Period shall
         not be extended.

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

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

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

         2.       Employment Period. The Company hereby agrees that the Company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company subject to the terms and conditions of this
Agreement during the Employment Period. During the Employment Period, the
Executive, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Executive) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Executive's rights under
this Agreement. The Executive shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Executive has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

                                       49
<PAGE>

         3.       Terms of Employment.

                  (a)      Position and Duties.

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

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Executive shall be
         eligible for an annual bonus for each fiscal year ending during the
         Employment Period on the same basis as other executive officers under
         the Company's executive officer annual incentive program. Each such
         Annual Bonus shall be paid no later than the end of the third month of
         the fiscal year next following the fiscal year for which the Annual
         Bonus is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Executive shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Executive with
         incentive opportunities (measured with respect to both regular and
         special

                                       50
<PAGE>

         incentive opportunities, to the extent, if any, that such distinction
         is applicable), savings opportunities and retirement benefit
         opportunities, in each case, less favorable, in the aggregate, than the
         most favorable of those provided by the Company and its affiliated
         companies for the Executive under such plans, practices, policies and
         programs as in effect on the date hereof. As used in this Agreement,
         the term "affiliated companies" shall include any company controlled
         by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to (A) at Executive's option, a
         monthly car allowance or use of an automobile, (B) a $1,500 per month
         housing allowance and (C) such other fringe benefits (including,
         without limitation, payment of club dues, financial planning services,
         cellular telephone, mobile email, annual physical examinations, payment
         of professional fees and professional taxes and payment of related
         expenses, as appropriate) in accordance with the most favorable plans,
         practices, programs and policies of the Company and its affiliated
         companies in effect for the Executive on the date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Executive
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Executive and Weatherford
International, Inc. or its Affiliates (the "Prior Agreements"). As a result, the
Executive and the Company agree that the Prior Agreements are hereby terminated
and of no further force and effect.

         4.       Termination of Employment.

         (a)      Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the

                                       51
<PAGE>

Disability of the Executive has occurred during the Employment Period, it may
provide the Executive with written notice in accordance with Section 11(b) of
this Agreement of its intention to terminate the Executive's employment. In such
event, the Executive's employment with the Company shall terminate effective 30
days after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that within the 30-day period after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties. In
addition, if a physician selected by the Executive determines that the
Disability of the Executive has occurred, the Executive (or his representative)
may provide the Company with written notice in accordance with Section 11(b) of
this Agreement of the Executive's intention to terminate his employment. In such
event, the Disability Effective Date shall be 30 days after receipt of such
notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

         5.       Obligations of the Company Upon Termination.

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

                                       52
<PAGE>

                           (i)      The Company shall pay to the Executive (or
         Executive's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Executive's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Executive in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Executive under
                  any deferred compensation plan sponsored by the Company
                  (together with any accrued interest or earnings thereon), and
                  any accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to three times the
                  sum of (i) the highest Annual Base Salary received by the
                  Executive in the last five years ended prior to the
                  Termination Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Executive under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and all other deferred compensation plans (excluding
                  the Company's ERP (as defined below)) during the 12-month
                  period immediately preceding the month of the Executive's Date
                  of Termination multiplied by three, such amount to be grossed
                  up so that the amount the Executive actually receives after
                  payment of any federal or state taxes payable thereon equals
                  the amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Executive on an annualized basis
                  multiplied by three.

                           (ii)     For a period of three years from the
         Executive's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Executive and the
         Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive (or Executive's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Executive
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Executive or
         the Executive's family is precluded from continuing participation in
         any of the foregoing plans, programs, practices or policies for any
         portion of such three year period, the Executive shall be provided with
         the after-tax economic equivalent of the benefits that would have been
         provided under such plans, programs, practices and policies for the
         portion of such three year period in which the Executive or Executive's
         family is unable to participate for the full period of three years.

                                       53
<PAGE>

                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Executive, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     The Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services, the scope
         and provider of which shall be selected by the Executive in his sole
         discretion.

                           (v)      All country club memberships, luncheon clubs
         and other memberships which the Company was providing for the
         Executive's or his family's use prior to the time that the Notice of
         Termination is given shall be transferred and assigned to the Executive
         at no cost to the Executive, the cost of transfer, if any, to be borne
         by the Company.

                           (vi)     At the Executive's sole discretion, the
         Company shall either transfer to the Executive ownership and title to
         the Executive's company car at no cost (other than any individual
         income taxes owed by the Executive) to the Executive or, if the
         Executive receives a monthly car allowance in lieu of a Company car,
         pay the Executive a lump sum in cash within 30 days after the
         Executive's Date of Termination equal to the Executive's annual car
         allowance multiplied by three. In addition, the Company shall also pay
         the reasonable moving and transportation costs and expenses to move the
         Executive and his family back to the United Kingdom.

                           (vii)    To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (viii)   If the Executive's employment is terminated
         by reason of the Executive's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Executive's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Executive's death.

                           (ix)     If the Executive's employment is terminated
         by reason of the Executive's Disability, then Other Benefits (as
         defined in this Section) shall also include, without limitation, and
         the Executive shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Executive's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Executive's employment is terminated
for Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the
Executive (x) his Annual Base Salary through the Date of Termination,

                                       54
<PAGE>

(y) the amount of any compensation previously deferred by the Executive and (z)
Other Benefits, in each case to the extent theretofore unpaid.

                  (c)      Termination by Executive Other Than for Good Reason.
If the Executive voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Executive's employment
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Executive
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Except as otherwise provided herein, amounts which are vested benefits, which
vest according to the terms of this Agreement or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement. If the
Executive has any other employment or similar agreement with the Company at the
Date of Termination, the Executive agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not both
agreements, and when the Executive has made such election, the other agreement
shall be superseded in its entirety and shall be of no further force and effect.
The Executive also agrees that to the extent he may be eligible for any
severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Executive Retirement Plan ("ERP"), if the Executive's employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                                       55
<PAGE>

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereto (including as a result of any contest by the
Executive about the amount of any payment pursuant to this Agreement), plus in
each case interest on any delayed payment at the applicable Federal rate
provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as
amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax or other
tax imposed by Section 4999 of the Code (and any successor provisions or
sections to Section 4999) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm, absent manifest error,
shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                  (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Executive is informed in writing of such claim, and shall apprise the
Company of the nature of such claim and the date

                                       56
<PAGE>

on which such claim is requested to be paid. The Executive shall not pay such
claim prior to the expiration of the 30-day period following the date on which
he gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Company
notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such

                                       57
<PAGE>

advance shall be forgiven and shall not be required to be repaid and the amount
of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

         9.       Confidential Information. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies, provided that it shall not apply to information which is
or shall become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement), information
that is developed by the Executive independently of such information, or
knowledge or data or information that is disclosed to the Executive by a third
party under no obligation of confidentiality to the Company. After termination
of the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company or as may otherwise be required by law
or legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         10.      Successors.

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

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

                                       58

<PAGE>

         11.      Miscellaneous.

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

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

                  If to the Executive:    Stuart E. Ferguson
                                          515 Post Oak Blvd., Suite 600
                                          Houston, Texas 77027

                  If to the Company:      Weatherford International Ltd.
                                          515 Post Oak Blvd., Suite 600
                                          Houston, Texas 77027
                                          Attention: General Counsel

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

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

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

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

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

                                       59

<PAGE>

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

                                      /s/ Stuart E. Ferguson
                                ----------------------------------------
                                        Stuart E. Ferguson

                                WEATHERFORD INTERNATIONAL LTD.

                                By:       /s/ Bernard J. Duroc-Danner
                                   --------------------------------------------
                                              Bernard J. Duroc-Danner
                                   Chairman, President & Chief Executive Officer

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                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and Burt M. Martin (the
"Executive").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Executive to substantially perform the Executive's duties with the Company
(other than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Executive pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially
performed the Executive's duties, or

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

                  No act, or failure to act, on the part of the Executive shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more
senior officer of the Company or based upon the advice of counsel for the
Company (which may be the General Counsel or other counsel employed by the
Company or its subsidiaries) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company. The cessation of employment of the Executive shall not be

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deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to the Executive, and the Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, the Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior

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         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

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries.

                  (g)      "Disability" shall mean the absence of the Executive
from performance of the Executive's duties with the Company on a substantial
basis for 120 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Executive of any
         position, authority, duties or responsibilities inconsistent with the
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Executive;

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

                           (iii)    any failure by the Company to continue to
         provide the Executive with benefits currently enjoyed by the Executive
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Executive of any fringe benefits or perquisites currently enjoyed by
         the Executive;

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Executive that the Employment Period shall
         not be extended.

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

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

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

         2.       Employment Period. The Company hereby agrees that the Company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company subject to the terms and conditions of this
Agreement during the Employment Period. During the Employment Period, the
Executive, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Executive) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Executive's rights under
this Agreement. The Executive shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Executive has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

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         3.       Terms of Employment.

                  (a)      Position and Duties.

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

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Executive shall be
         eligible for an annual bonus for each fiscal year ending during the
         Employment Period on the same basis as other executive officers under
         the Company's executive officer annual incentive program. Each such
         Annual Bonus shall be paid no later than the end of the third month of
         the fiscal year next following the fiscal year for which the Annual
         Bonus is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Executive shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Executive with
         incentive opportunities (measured with respect to both regular and
         special

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         incentive opportunities, to the extent, if any, that such distinction
         is applicable), savings opportunities and retirement benefit
         opportunities, in each case, less favorable, in the aggregate, than the
         most favorable of those provided by the Company and its affiliated
         companies for the Executive under such plans, practices, policies and
         programs as in effect on the date hereof. As used in this Agreement,
         the term "affiliated companies" shall include any company controlled
         by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to (A) at Executive's option, a
         monthly car allowance or use of an automobile and (B) such other fringe
         benefits (including, without limitation, payment of club dues,
         financial planning services, cellular telephone, mobile email, annual
         physical examinations, payment of professional fees and professional
         taxes and payment of related expenses, as appropriate) in accordance
         with the most favorable plans, practices, programs and policies of the
         Company and its affiliated companies in effect for the Executive on the
         date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Executive
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Executive and Weatherford
International, Inc. or its Affiliates (the "Prior Agreements"). As a result, the
Executive and the Company agree that the Prior Agreements are hereby terminated
and of no further force and effect.

         4.       Termination of Employment.

         (a)      Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period, it may provide the Executive

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with written notice in accordance with Section 11(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective 30 days after
receipt of such notice by the Executive (the "Disability Effective Date"),
provided that within the 30-day period after such receipt, the Executive shall
not have returned to full-time performance of the Executive's duties. In
addition, if a physician selected by the Executive determines that the
Disability of the Executive has occurred, the Executive (or his representative)
may provide the Company with written notice in accordance with Section 11(b) of
this Agreement of the Executive's intention to terminate his employment. In such
event, the Disability Effective Date shall be 30 days after receipt of such
notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

         5.       Obligations of the Company Upon Termination.

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

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                           (i)      The Company shall pay to the Executive (or
         Executive's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Executive's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Executive in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Executive under
                  any deferred compensation plan sponsored by the Company
                  (together with any accrued interest or earnings thereon), and
                  any accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to three times the
                  sum of (i) the highest Annual Base Salary received by the
                  Executive in the last five years ended prior to the
                  Termination Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Executive under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and all other deferred compensation plans (excluding
                  the Company's ERP (as defined below)) during the 12-month
                  period immediately preceding the month of the Executive's Date
                  of Termination multiplied by three, such amount to be grossed
                  up so that the amount the Executive actually receives after
                  payment of any federal or state taxes payable thereon equals
                  the amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Executive on an annualized basis
                  multiplied by three.

                           (ii)     For a period of three years from the
         Executive's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Executive and the
         Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive (or Executive's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Executive
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Executive or
         the Executive's family is precluded from continuing participation in
         any of the foregoing plans, programs, practices or policies for any
         portion of such three year period, the Executive shall be provided with
         the after-tax economic equivalent of the benefits that would have been
         provided under such plans, programs, practices and policies for the
         portion of such three year period in which the Executive or Executive's
         family is unable to participate for the full period of three years.

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                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Executive, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     The Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services, the scope
         and provider of which shall be selected by the Executive in his sole
         discretion.

                           (v)      All country club memberships, luncheon clubs
         and other memberships which the Company was providing for the
         Executive's or his family's use prior to the time that the Notice of
         Termination is given shall be transferred and assigned to the Executive
         at no cost to the Executive, the cost of transfer, if any, to be borne
         by the Company.

                           (vi)     At the Executive's sole discretion, the
         Company shall either transfer to the Executive ownership and title to
         the Executive's company car at no cost (other than any individual
         income taxes owed by the Executive) to the Executive or, if the
         Executive receives a monthly car allowance in lieu of a Company car,
         pay the Executive a lump sum in cash within 30 days after the
         Executive's Date of Termination equal to the Executive's annual car
         allowance multiplied by three.

                           (vii)    To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (viii)   If the Executive's employment is terminated
         by reason of the Executive's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Executive's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Executive's death.

                           (ix)     If the Executive's employment is terminated
         by reason of the Executive's Disability, then Other Benefits (as
         defined in this Section) shall also include, without limitation, and
         the Executive shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Executive's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Executive's employment is terminated
for Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the
Executive (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Executive and (z) Other
Benefits, in each case to the extent theretofore unpaid.

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                  (c)      Termination by Executive Other Than for Good Reason.
If the Executive voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Executive's employment
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Executive
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Except as otherwise provided herein, amounts which are vested benefits, which
vest according to the terms of this Agreement or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement. If the
Executive has any other employment or similar agreement with the Company at the
Date of Termination, the Executive agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not both
agreements, and when the Executive has made such election, the other agreement
shall be superseded in its entirety and shall be of no further force and effect.
The Executive also agrees that to the extent he may be eligible for any
severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Executive Retirement Plan ("ERP"), if the Executive's employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereto (including as

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<PAGE>

a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax or other
tax imposed by Section 4999 of the Code (and any successor provisions or
sections to Section 4999) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm, absent manifest error,
shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                  (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Executive is informed in writing of such claim, and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice
to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the

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<PAGE>

Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

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<PAGE>

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

         9.       Confidential Information. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies, provided that it shall not apply to information which is
or shall become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement), information
that is developed by the Executive independently of such information, or
knowledge or data or information that is disclosed to the Executive by a third
party under no obligation of confidentiality to the Company. After termination
of the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company or as may otherwise be required by law
or legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         10.      Successors.

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

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

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<PAGE>

         11.      Miscellaneous.

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

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

                  If to the Executive:   Burt M. Martin
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027

                  If to the Company:     Weatherford International Ltd.
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027
                                         Attention: General Counsel

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

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

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

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

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

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<PAGE>

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

                                    /s/ Burt M. Martin
                           ------------------------------------------------
                                        Burt M. Martin

                           WEATHERFORD INTERNATIONAL LTD.

                           By:       /s/ Bernard J. Duroc-Danner
                              ---------------------------------------------
                                         Bernard J. Duroc-Danner
                              Chairman, President & Chief Executive Officer

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and Keith R. Morley (the
"Employee").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Employee to substantially perform the Employee's duties with the Company (other
than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Employee pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Employee by the Board which
specifically identifies the manner in which the Employee has not substantially
performed the Employee's duties, or

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

                  No act, or failure to act, on the part of the Employee shall
be considered "willful" unless it is done, or omitted to be done, by the
Employee in bad faith or without reasonable belief that the Employee's action or
omission was in the best interests of the Company. Any act, or failure to act,
based upon authority given pursuant to a resolution duly adopted by the Board or
upon the instructions of the Chief Executive Officer or of a more senior officer
of the Company or based upon the advice of counsel for the Company (which may be
the General Counsel or other counsel employed by the Company or its
subsidiaries) shall be conclusively presumed to be done, or omitted to be done,
by the Employee in good faith and in the best interests of the Company. The
cessation of employment of the Employee shall not be deemed to be for Cause
unless and until there shall have been delivered to the Employee a copy of a

<PAGE>

resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Board at a meeting of the Board called and held
for such purpose (after reasonable notice is provided to the Employee, and the
Employee is given an opportunity, together with counsel, to be heard before the
Board), finding that, in the good faith opinion of the Board, the Employee is
guilty of the conduct described in subparagraph (i) or (ii) above, and
specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior to the Corporate Transaction
         and (C) at least two-thirds of the members of the board of directors

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<PAGE>

         (or other governing body) of the entity resulting from such Corporate
         Transaction were members of the Incumbent Board at the time of the
         approval of such Corporate Transaction; or

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries

                  (g)      "Disability" shall mean the absence of the Employee
from performance of the Employee's duties with the Company on a substantial
basis for 180 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Employee
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Employee of any
         position, authority, duties or responsibilities inconsistent with the
         Employee's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Employee;

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

                           (iii)    any failure by the Company to continue to
         provide the Employee with benefits currently enjoyed by the Employee
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Employee of any fringe benefits or perquisites currently enjoyed by the
         Employee;

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

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<PAGE>

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Employee that the Employment Period shall
         not be extended.

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

         For purposes of this Agreement, any good faith determination of "Good
Reason" made by the Employee shall be conclusive.

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

                  2.       Employment Period. The Company hereby agrees that the
Company will continue the Employee in its employ, and the Employee hereby agrees
to remain in the employ of the Company subject to the terms and conditions of
this Agreement during the Employment Period. During the Employment Period, the
Employee, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Employee) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Employee's rights under
this Agreement. The Employee shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Employee has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

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<PAGE>

         3.       Terms of Employment.

                  (a)      Position and Duties.

                           (i)      During the Employment Period, (A) the
         Employee's position (including status, offices, titles, reporting
         requirements, authority, duties and responsibilities) shall be Vice
         President - Enterprise Excellence of the Company and (B) the Employee's
         services shall be performed at the Company's executive office in
         Houston, Texas or other locations less than 35 miles from such
         location.

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Employee shall be eligible
         for an annual bonus for each fiscal year ending during the Employment
         Period on the same basis as other executive officers under the
         Company's executive officer annual incentive program. Each such Annual
         Bonus shall be paid no later than the end of the third month of the
         fiscal year next following the fiscal year for which the Annual Bonus
         is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Employee shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Employee with
         incentive opportunities (measured with respect to both regular and
         special incentive opportunities, to the extent, if any, that such
         distinction is applicable), savings opportunities and retirement
         benefit opportunities, in each case, less favorable, in the aggregate,

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<PAGE>

         than the most favorable of those provided by the Company and its
         affiliated companies for the Employee under such plans, practices,
         policies and programs as in effect on the date hereof. As used in this
         Agreement, the term "affiliated companies" shall include any company
         controlled by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Employee shall be entitled to (A) a monthly car allowance
         and (B) such other fringe benefits in accordance with the most
         favorable plans, practices, programs and policies of the Company and
         its affiliated companies in effect for the Employee on the date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Employee
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Employee and Weatherford
International, Inc. or its affiliates (the "Prior Agreements"). As a result, the
Employee and the Company agree that any and all Prior Agreements are hereby
terminated and of no further force and effect.

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<PAGE>

         4.       Termination of Employment.

                  (a)      Death or Disability. The Employee's employment shall
terminate automatically upon the Employee's death during the Employment Period.
If the Company determines in good faith that the Disability of the Employee has
occurred during the Employment Period, it may provide the Employee with written
notice in accordance with Section 11(b) of this Agreement of its intention to
terminate the Employee's employment. In such event, the Employee's employment
with the Company shall terminate effective 30 days after receipt of such notice
by the Employee (the "Disability Effective Date"), provided that within the
30-day period after such receipt, the Employee shall not have returned to
full-time performance of the Employee's duties. In addition, if a physician
selected by the Employee determines that the Disability of the Employee has
occurred, the Employee (or his representative) may provide the Company with
written notice in accordance with Section 11(b) of this Agreement of the
Employee's intention to terminate his employment. In such event, the Disability
Effective Date shall be 30 days after receipt of such notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Employee for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Employee or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Employee or the Company, respectively, from asserting
such fact or circumstance in enforcing the Employee's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

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<PAGE>

         5.       Obligations of the Company Upon Termination.

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

                           (i)      The Company shall pay to the Employee (or
         Employee's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Employee's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Employee in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Employee under any
                  deferred compensation plan sponsored by the Company (together
                  with any accrued interest or earnings thereon), and any
                  accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to two times the
                  sum of (i) the highest Annual Base Salary received by the
                  Employee in the last five years ended prior to the Termination
                  Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Employee under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and any other deferred compensation plan (excluding the
                  Company's ERP (as defined below)) during the 12-month period
                  immediately preceding the month of the Employee's Date of
                  Termination multiplied by two, such amount to be grossed up so
                  that the amount the Employee actually receives after payment
                  of any federal or state taxes payable thereon equals the
                  amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Employee on an annualized basis
                  multiplied by two.

                           (ii)     For a period of two years from the
         Employee's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Employee and the
         Employee's family equal to those which would have been provided to them
         in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Employee's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Employee (or Employee's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Employee
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Employee or
         the Employee's family is precluded from continuing participation in any
         of the foregoing plans,

                                       83
<PAGE>

         programs, practices or policies for any portion of such two year
         period, the Employee shall be provided with the after-tax economic
         equivalent of the benefits that would have been provided under such
         plans, programs, practices and policies for the portion of such two
         year period in which the Employee or Employee's family is unable to
         participate for the full period of three years.

                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Employee, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Employee any
         other amounts or benefits required to be paid or provided or which the
         Employee is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (v)      If the Employee's employment is terminated
         by reason of the Employee's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Employee's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Employee's death.

                           (vi)     If the Employee's employment is terminated
         by reason of the Employee's Disability, then Other Benefits (as defined
         in this Section) shall also include, without limitation, and the
         Employee shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Employee's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Employee's employment is terminated for
Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Employee, other than the obligation to pay to the
Employee (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Employee and (z) Other
Benefits, in each case to the extent theretofore unpaid.

                  (c)      Termination by Employee Other Than for Good Reason.
If the Employee voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Employee's employment
shall terminate without further obligations to the Employee, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Employee
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Employee's continuing or future participation in any
plan, program, policy or practice provided by the

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<PAGE>

Company or any of its affiliated companies and for which the Employee may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Employee may have under any contract or agreement with the Company or any of its
affiliated companies. Except as otherwise provided herein, amounts which are
vested benefits, which vest according to the terms of this Agreement or which
the Employee is otherwise entitled to receive under any plan, policy, practice
or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement. If the Employee has any other employment or similar agreement with
the Company at the Date of Termination, the Employee agrees that he shall have
the right to receive all of the benefits provided under this Agreement or such
other agreement, whichever one, in its entirety, the Employee chooses, but not
both agreements, and when the Employee has made such election, the other
agreement shall be superseded in its entirety and shall be of no further force
and effect. The Employee also agrees that to the extent he may be eligible for
any severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Employee shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Employee Retirement Plan ("ERP"), if the Employee's employment is terminated for
any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the Employee
may reasonably incur as a result of any contest (regardless of the outcome
thereof) by the Company or the Employee of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereto (including as a result of any contest by the Employee about the amount
of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Employee (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by the
Employee with respect to such excise tax (such excise tax, together with any

                                       85
<PAGE>

such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Employee shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Employee of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Employee (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Employee within 15 business days after the receipt of notice from the Employee
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Employee shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined
pursuant to this Section 8, shall be paid by the Company to the Employee within
five days after the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm, absent manifest error, shall be binding
upon the Company and the Employee. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which
will not have been made by the Company should have been made ("Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 8(c) and the Employee
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Employee.

                  (c)      The Employee shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Employee is informed in writing of such claim, and shall apprise the Company
of the nature of such claim and the date on which such claim is requested to be
paid. The Employee shall not pay such claim prior to the expiration of the
30-day period following the date on which he gives such notice to the Company
(or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Employee in writing
prior to the expiration of such period that it desires to contest such claim,
the Employee shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

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<PAGE>

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Employee to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and the Employee agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Employee to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Employee, on an interest-free basis and shall indemnify and hold
the Employee harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Employee with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Employee shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Employee of an amount
advanced by the Company pursuant to Section 8(c), the Employee becomes entitled
to receive any refund with respect to such claim, the Employee shall (subject to
the Company's complying with the requirements of Section 8(c)) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Employee of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Employee shall not be entitled to any refund with
respect to such claim and the Company does not notify the Employee in writing of
its intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

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

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<PAGE>

prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an
asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Employee under
this Agreement.

         10.      Successors.

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

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

         11.      Miscellaneous.

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

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

                  If to the Employee:    Keith R. Morley
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027

                  If to the Company:     Weatherford International Ltd.
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027
                                         Attention: General Counsel

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<PAGE>

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

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

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

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

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

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<PAGE>

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

                                              /s/ Keith R. Morley
                                  ----------------------------------------------
                                                Keith R. Morley

                                  WEATHERFORD INTERNATIONAL LTD.

                                  By:     /s/ Bernard J. Duroc-Danner
                                     -------------------------------------------
                                            Bernard J. Duroc-Danner
                                   Chairman, President & Chief Executive Officer

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and Jon R. Nicholson (the
"Executive").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Executive to substantially perform the Executive's duties with the Company
(other than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Executive pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially
performed the Executive's duties, or

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

                  No act, or failure to act, on the part of the Executive shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more
senior officer of the Company or based upon the advice of counsel for the
Company (which may be the General Counsel or other counsel employed by the
Company or its subsidiaries) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company. The cessation of employment of the Executive shall not be

<PAGE>

deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to the Executive, and the Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, the Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior

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         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

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries.

                  (g)      "Disability" shall mean the absence of the Executive
from performance of the Executive's duties with the Company on a substantial
basis for 120 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Executive of any
         position, authority, duties or responsibilities inconsistent with the
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Executive;

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

                           (iii)    any failure by the Company to continue to
         provide the Executive with benefits currently enjoyed by the Executive
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Executive of any fringe benefits or perquisites currently enjoyed by
         the Executive;

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<PAGE>

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Executive that the Employment Period shall
         not be extended.

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

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

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

         2.       Employment Period. The Company hereby agrees that the Company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company subject to the terms and conditions of this
Agreement during the Employment Period. During the Employment Period, the
Executive, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Executive) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Executive's rights under
this Agreement. The Executive shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Executive has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

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<PAGE>

         3.       Terms of Employment.

                  (a)      Position and Duties.

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

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Executive shall be
         eligible for an annual bonus for each fiscal year ending during the
         Employment Period on the same basis as other executive officers under
         the Company's executive officer annual incentive program. Each such
         Annual Bonus shall be paid no later than the end of the third month of
         the fiscal year next following the fiscal year for which the Annual
         Bonus is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Executive shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Executive with
         incentive opportunities (measured with respect to both regular and
         special

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<PAGE>

         incentive opportunities, to the extent, if any, that such distinction
         is applicable), savings opportunities and retirement benefit
         opportunities, in each case, less favorable, in the aggregate, than the
         most favorable of those provided by the Company and its affiliated
         companies for the Executive under such plans, practices, policies and
         programs as in effect on the date hereof. As used in this Agreement,
         the term "affiliated companies" shall include any company controlled
         by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to (A) at Executive's option, a
         monthly car allowance or use of an automobile and (B) such other fringe
         benefits (including, without limitation, payment of club dues,
         financial planning services, cellular telephone, mobile email, annual
         physical examinations, payment of professional fees and professional
         taxes and payment of related expenses, as appropriate) in accordance
         with the most favorable plans, practices, programs and policies of the
         Company and its affiliated companies in effect for the Executive on the
         date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Executive
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Executive and Weatherford
International, Inc. or its Affiliates (the "Prior Agreements"). As a result, the
Executive and the Company agree that the Prior Agreements are hereby terminated
and of no further force and effect.

         4.       Termination of Employment.

                  (a)      Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period, it may provide the Executive

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with written notice in accordance with Section 11(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective 30 days after
receipt of such notice by the Executive (the "Disability Effective Date"),
provided that within the 30-day period after such receipt, the Executive shall
not have returned to full-time performance of the Executive's duties. In
addition, if a physician selected by the Executive determines that the
Disability of the Executive has occurred, the Executive (or his representative)
may provide the Company with written notice in accordance with Section 11(b) of
this Agreement of the Executive's intention to terminate his employment. In such
event, the Disability Effective Date shall be 30 days after receipt of such
notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

         5.       Obligations of the Company Upon Termination.

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

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                           (i)      The Company shall pay to the Executive (or
         Executive's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Executive's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Executive in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Executive under
                  any deferred compensation plan sponsored by the Company
                  (together with any accrued interest or earnings thereon), and
                  any accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to three times the
                  sum of (i) the highest Annual Base Salary received by the
                  Executive in the last five years ended prior to the
                  Termination Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Executive under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and all other deferred compensation plans (excluding
                  the Company's ERP (as defined below)) during the 12-month
                  period immediately preceding the month of the Executive's Date
                  of Termination multiplied by three, such amount to be grossed
                  up so that the amount the Executive actually receives after
                  payment of any federal or state taxes payable thereon equals
                  the amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Executive on an annualized basis
                  multiplied by three.

                           (ii)     For a period of three years from the
         Executive's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Executive and the
         Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive (or Executive's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Executive
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Executive or
         the Executive's family is precluded from continuing participation in
         any of the foregoing plans, programs, practices or policies for any
         portion of such three year period, the Executive shall be provided with
         the after-tax economic equivalent of the benefits that would have been
         provided under such plans, programs, practices and policies for the
         portion of such three year period in which the Executive or Executive's
         family is unable to participate for the full period of three years.

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<PAGE>

                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Executive, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     The Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services, the scope
         and provider of which shall be selected by the Executive in his sole
         discretion.

                           (v)      All country club memberships, luncheon clubs
         and other memberships which the Company was providing for the
         Executive's or his family's use prior to the time that the Notice of
         Termination is given shall be transferred and assigned to the Executive
         at no cost to the Executive, the cost of transfer, if any, to be borne
         by the Company.

                           (vi)     At the Executive's sole discretion, the
         Company shall either transfer to the Executive ownership and title to
         the Executive's company car at no cost (other than any individual
         income taxes owed by the Executive) to the Executive or, if the
         Executive receives a monthly car allowance in lieu of a Company car,
         pay the Executive a lump sum in cash within 30 days after the
         Executive's Date of Termination equal to the Executive's annual car
         allowance multiplied by three.

                           (vii)    To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (viii)   If the Executive's employment is terminated
         by reason of the Executive's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Executive's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Executive's death.

                           (ix)     If the Executive's employment is terminated
         by reason of the Executive's Disability, then Other Benefits (as
         defined in this Section) shall also include, without limitation, and
         the Executive shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Executive's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Executive's employment is terminated
for Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the
Executive (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Executive and (z) Other
Benefits, in each case to the extent theretofore unpaid.

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<PAGE>

                  (c)      Termination by Executive Other Than for Good Reason.
If the Executive voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Executive's employment
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Executive
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Except as otherwise provided herein, amounts which are vested benefits, which
vest according to the terms of this Agreement or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement. If the
Executive has any other employment or similar agreement with the Company at the
Date of Termination, the Executive agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not both
agreements, and when the Executive has made such election, the other agreement
shall be superseded in its entirety and shall be of no further force and effect.
The Executive also agrees that to the extent he may be eligible for any
severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Executive Retirement Plan ("ERP"), if the Executive's employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereto (including as

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<PAGE>

a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax or other
tax imposed by Section 4999 of the Code (and any successor provisions or
sections to Section 4999) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm, absent manifest error,
shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                  (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Executive is informed in writing of such claim, and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice
to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the

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Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

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                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

         9.       Confidential Information. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies, provided that it shall not apply to information which is
or shall become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement), information
that is developed by the Executive independently of such information, or
knowledge or data or information that is disclosed to the Executive by a third
party under no obligation of confidentiality to the Company. After termination
of the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company or as may otherwise be required by law
or legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         10.      Successors.

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

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

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         11.      Miscellaneous.

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

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

                  If to the Executive:   Jon R. Nicholson
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027

                  If to the Company:     Weatherford International Ltd.
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027
                                         Attention: General Counsel

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

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

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

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

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

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<PAGE>

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

                                             /s/ Jon R. Nicholson
                              --------------------------------------------------
                                               Jon R. Nicholson

                              WEATHERFORD INTERNATIONAL LTD.

                              By:         /s/ Bernard J. Duroc-Danner
                                 -----------------------------------------------
                                            Bernard J. Duroc-Danner
                                 Chairman, President & Chief Executive Officer

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and James N. Parmigiano (the
"Employee").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Employee to substantially perform the Employee's duties with the Company (other
than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Employee pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Employee by the Board which
specifically identifies the manner in which the Employee has not substantially
performed the Employee's duties, or

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

                  No act, or failure to act, on the part of the Employee shall
be considered "willful" unless it is done, or omitted to be done, by the
Employee in bad faith or without reasonable belief that the Employee's action or
omission was in the best interests of the Company. Any act, or failure to act,
based upon authority given pursuant to a resolution duly adopted by the Board or
upon the instructions of the Chief Executive Officer or of a more senior officer
of the Company or based upon the advice of counsel for the Company (which may be
the General Counsel or other counsel employed by the Company or its
subsidiaries) shall be conclusively presumed to be done, or omitted to be done,
by the Employee in good faith and in the best interests of the Company. The
cessation of employment of the Employee shall not be deemed to be for Cause
unless and until there shall have been delivered to the Employee a copy of a

<PAGE>

resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Board at a meeting of the Board called and held
for such purpose (after reasonable notice is provided to the Employee, and the
Employee is given an opportunity, together with counsel, to be heard before the
Board), finding that, in the good faith opinion of the Board, the Employee is
guilty of the conduct described in subparagraph (i) or (ii) above, and
specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior to the Corporate Transaction
         and (C) at least two-thirds of the members of the board of directors

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<PAGE>

         (or other governing body) of the entity resulting from such Corporate
         Transaction were members of the Incumbent Board at the time of the
         approval of such Corporate Transaction; or

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries

                  (g)      "Disability" shall mean the absence of the Employee
from performance of the Employee's duties with the Company on a substantial
basis for 180 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Employee
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Employee of any
         position, authority, duties or responsibilities inconsistent with the
         Employee's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Employee;

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

                           (iii)    any failure by the Company to continue to
         provide the Employee with benefits currently enjoyed by the Employee
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Employee of any fringe benefits or perquisites currently enjoyed by the
         Employee;

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

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<PAGE>

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Employee that the Employment Period shall
         not be extended.

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

         For purposes of this Agreement, any good faith determination of "Good
Reason" made by the Employee shall be conclusive.

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

                  2.       Employment Period. The Company hereby agrees that the
Company will continue the Employee in its employ, and the Employee hereby agrees
to remain in the employ of the Company subject to the terms and conditions of
this Agreement during the Employment Period. During the Employment Period, the
Employee, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Employee) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Employee's rights under
this Agreement. The Employee shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Employee has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

                                      109
<PAGE>

         3.       Terms of Employment.

                  (a)      Position and Duties.

                           (i)      During the Employment Period, (A) the
         Employee's position (including status, offices, titles, reporting
         requirements, authority, duties and responsibilities) shall be Vice
         President - Operational Controller of the Company and (B) the
         Employee's services shall be performed at the Company's executive
         office in Houston, Texas or other locations less than 35 miles from
         such location.

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Employee shall be eligible
         for an annual bonus for each fiscal year ending during the Employment
         Period on the same basis as other executive officers under the
         Company's executive officer annual incentive program. Each such Annual
         Bonus shall be paid no later than the end of the third month of the
         fiscal year next following the fiscal year for which the Annual Bonus
         is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Employee shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Employee with
         incentive opportunities (measured with respect to both regular and
         special incentive opportunities, to the extent, if any, that such
         distinction is applicable), savings opportunities and retirement
         benefit opportunities, in each case, less favorable, in the aggregate,

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<PAGE>

         than the most favorable of those provided by the Company and its
         affiliated companies for the Employee under such plans, practices,
         policies and programs as in effect on the date hereof. As used in this
         Agreement, the term "affiliated companies" shall include any company
         controlled by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Employee shall be entitled to (A) a monthly car allowance
         and (B) such other fringe benefits in accordance with the most
         favorable plans, practices, programs and policies of the Company and
         its affiliated companies in effect for the Employee on the date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Employee
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Employee and Weatherford
International, Inc. or its affiliates (the "Prior Agreements"). As a result, the
Employee and the Company agree that any and all Prior Agreements are hereby
terminated and of no further force and effect.

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<PAGE>

         4.       Termination of Employment.

                  (a)      Death or Disability. The Employee's employment shall
terminate automatically upon the Employee's death during the Employment Period.
If the Company determines in good faith that the Disability of the Employee has
occurred during the Employment Period, it may provide the Employee with written
notice in accordance with Section 11(b) of this Agreement of its intention to
terminate the Employee's employment. In such event, the Employee's employment
with the Company shall terminate effective 30 days after receipt of such notice
by the Employee (the "Disability Effective Date"), provided that within the
30-day period after such receipt, the Employee shall not have returned to
full-time performance of the Employee's duties. In addition, if a physician
selected by the Employee determines that the Disability of the Employee has
occurred, the Employee (or his representative) may provide the Company with
written notice in accordance with Section 11(b) of this Agreement of the
Employee's intention to terminate his employment. In such event, the Disability
Effective Date shall be 30 days after receipt of such notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Employee for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Employee or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Employee or the Company, respectively, from asserting
such fact or circumstance in enforcing the Employee's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

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<PAGE>

         5.       Obligations of the Company Upon Termination.

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

                           (i)      The Company shall pay to the Employee (or
         Employee's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Employee's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Employee in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Employee under any
                  deferred compensation plan sponsored by the Company (together
                  with any accrued interest or earnings thereon), and any
                  accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to two times the
                  sum of (i) the highest Annual Base Salary received by the
                  Employee in the last five years ended prior to the Termination
                  Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Employee under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and any other deferred compensation plan (excluding the
                  Company's ERP (as defined below)) during the 12-month period
                  immediately preceding the month of the Employee's Date of
                  Termination multiplied by two, such amount to be grossed up so
                  that the amount the Employee actually receives after payment
                  of any federal or state taxes payable thereon equals the
                  amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Employee on an annualized basis
                  multiplied by two.

                           (ii)     For a period of two years from the
         Employee's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Employee and the
         Employee's family equal to those which would have been provided to them
         in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Employee's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Employee (or Employee's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Employee
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Employee or
         the Employee's family is precluded from continuing participation in any
         of the foregoing plans,

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<PAGE>

         programs, practices or policies for any portion of such two year
         period, the Employee shall be provided with the after-tax economic
         equivalent of the benefits that would have been provided under such
         plans, programs, practices and policies for the portion of such two
         year period in which the Employee or Employee's family is unable to
         participate for the full period of three years.

                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Employee, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Employee any
         other amounts or benefits required to be paid or provided or which the
         Employee is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (v)      If the Employee's employment is terminated
         by reason of the Employee's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Employee's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Employee's death.

                           (vi)     If the Employee's employment is terminated
         by reason of the Employee's Disability, then Other Benefits (as defined
         in this Section) shall also include, without limitation, and the
         Employee shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Employee's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Employee's employment is terminated for
Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Employee, other than the obligation to pay to the
Employee (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Employee and (z) Other
Benefits, in each case to the extent theretofore unpaid.

                  (c)      Termination by Employee Other Than for Good Reason.
If the Employee voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Employee's employment
shall terminate without further obligations to the Employee, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Employee
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Employee's continuing or future participation in any
plan, program, policy or practice provided by the

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<PAGE>

Company or any of its affiliated companies and for which the Employee may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Employee may have under any contract or agreement with the Company or any of its
affiliated companies. Except as otherwise provided herein, amounts which are
vested benefits, which vest according to the terms of this Agreement or which
the Employee is otherwise entitled to receive under any plan, policy, practice
or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement. If the Employee has any other employment or similar agreement with
the Company at the Date of Termination, the Employee agrees that he shall have
the right to receive all of the benefits provided under this Agreement or such
other agreement, whichever one, in its entirety, the Employee chooses, but not
both agreements, and when the Employee has made such election, the other
agreement shall be superseded in its entirety and shall be of no further force
and effect. The Employee also agrees that to the extent he may be eligible for
any severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Employee shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Employee Retirement Plan ("ERP"), if the Employee's employment is terminated for
any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the Employee
may reasonably incur as a result of any contest (regardless of the outcome
thereof) by the Company or the Employee of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereto (including as a result of any contest by the Employee about the amount
of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Employee (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by the
Employee with respect to such excise tax (such excise tax, together with any

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<PAGE>

such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Employee shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Employee of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Employee (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Employee within 15 business days after the receipt of notice from the Employee
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Employee shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined
pursuant to this Section 8, shall be paid by the Company to the Employee within
five days after the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm, absent manifest error, shall be binding
upon the Company and the Employee. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which
will not have been made by the Company should have been made ("Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 8(c) and the Employee
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Employee.

                  (c)      The Employee shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Employee is informed in writing of such claim, and shall apprise the Company
of the nature of such claim and the date on which such claim is requested to be
paid. The Employee shall not pay such claim prior to the expiration of the
30-day period following the date on which he gives such notice to the Company
(or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Employee in writing
prior to the expiration of such period that it desires to contest such claim,
the Employee shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

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<PAGE>

                           (iv)     permit the Company to participate in any
proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Employee to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and the Employee agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Employee to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Employee, on an interest-free basis and shall indemnify and hold
the Employee harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Employee with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Employee shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Employee of an amount
advanced by the Company pursuant to Section 8(c), the Employee becomes entitled
to receive any refund with respect to such claim, the Employee shall (subject to
the Company's complying with the requirements of Section 8(c)) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Employee of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Employee shall not be entitled to any refund with
respect to such claim and the Company does not notify the Employee in writing of
its intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

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

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<PAGE>

prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an
asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Employee under
this Agreement.

         10.      Successors.

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

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

         11.      Miscellaneous.

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

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

                  If to the Employee:        James N. Parmigiano
                                             515 Post Oak Blvd., Suite 600
                                             Houston, Texas 77027

                  If to the Company:         Weatherford International Ltd.
                                             515 Post Oak Blvd., Suite 600
                                             Houston, Texas 77027
                                             Attention: General Counsel

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<PAGE>

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

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

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

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

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

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

                                            /s/ James N. Parmigiano
                           -----------------------------------------------------
                                              James N. Parmigiano

                           WEATHERFORD INTERNATIONAL LTD.

                           By:           /s/ Bernard J. Duroc-Danner
                              --------------------------------------------------
                                            Bernard J. Duroc-Danner
                                Chairman, President & Chief Executive Officer

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and Lisa W. Rodriguez (the
"Executive").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Executive to substantially perform the Executive's duties with the Company
(other than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Executive pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially
performed the Executive's duties, or

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

                  No act, or failure to act, on the part of the Executive shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more
senior officer of the Company or based upon the advice of counsel for the
Company (which may be the General Counsel or other counsel employed by the
Company or its subsidiaries) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company. The cessation of employment of the Executive shall not be

<PAGE>

deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to the Executive, and the Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, the Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior

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         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

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries.

                  (g)      "Disability" shall mean the absence of the Executive
from performance of the Executive's duties with the Company on a substantial
basis for 120 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Executive of any
         position, authority, duties or responsibilities inconsistent with the
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Executive;

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

                           (iii)    any failure by the Company to continue to
         provide the Executive with benefits currently enjoyed by the Executive
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Executive of any fringe benefits or perquisites currently enjoyed by
         the Executive;

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Executive that the Employment Period shall
         not be extended.

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

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

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

         2.       Employment Period. The Company hereby agrees that the Company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company subject to the terms and conditions of this
Agreement during the Employment Period. During the Employment Period, the
Executive, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Executive) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Executive's rights under
this Agreement. The Executive shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Executive has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

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         3.       Terms of Employment.

                  (a)      Position and Duties.

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

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Executive shall be
         eligible for an annual bonus for each fiscal year ending during the
         Employment Period on the same basis as other executive officers under
         the Company's executive officer annual incentive program. Each such
         Annual Bonus shall be paid no later than the end of the third month of
         the fiscal year next following the fiscal year for which the Annual
         Bonus is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Executive shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Executive with
         incentive opportunities (measured with respect to both regular and
         special

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         incentive opportunities, to the extent, if any, that such distinction
         is applicable), savings opportunities and retirement benefit
         opportunities, in each case, less favorable, in the aggregate, than the
         most favorable of those provided by the Company and its affiliated
         companies for the Executive under such plans, practices, policies and
         programs as in effect on the date hereof. As used in this Agreement,
         the term "affiliated companies" shall include any company controlled
         by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to (A) at Executive's option, a
         monthly car allowance or use of an automobile and (B) such other fringe
         benefits (including, without limitation, payment of club dues,
         financial planning services, cellular telephone, mobile email, annual
         physical examinations, payment of professional fees and professional
         taxes and payment of related expenses, as appropriate) in accordance
         with the most favorable plans, practices, programs and policies of the
         Company and its affiliated companies in effect for the Executive on the
         date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Executive
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Executive and Weatherford
International, Inc. or its Affiliates (the "Prior Agreements"). As a result, the
Executive and the Company agree that the Prior Agreements are hereby terminated
and of no further force and effect.

         4.       Termination of Employment.

         (a)      Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period, it may provide the Executive

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with written notice in accordance with Section 11(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective 30 days after
receipt of such notice by the Executive (the "Disability Effective Date"),
provided that within the 30-day period after such receipt, the Executive shall
not have returned to full-time performance of the Executive's duties. In
addition, if a physician selected by the Executive determines that the
Disability of the Executive has occurred, the Executive (or his representative)
may provide the Company with written notice in accordance with Section 11(b) of
this Agreement of the Executive's intention to terminate his employment. In such
event, the Disability Effective Date shall be 30 days after receipt of such
notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

         5.       Obligations of the Company Upon Termination.

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

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                           (i)      The Company shall pay to the Executive (or
         Executive's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Executive's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Executive in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Executive under
                  any deferred compensation plan sponsored by the Company
                  (together with any accrued interest or earnings thereon), and
                  any accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to three times the
                  sum of (i) the highest Annual Base Salary received by the
                  Executive in the last five years ended prior to the
                  Termination Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Executive under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and all other deferred compensation plans (excluding
                  the Company's ERP (as defined below)) during the 12-month
                  period immediately preceding the month of the Executive's Date
                  of Termination multiplied by three, such amount to be grossed
                  up so that the amount the Executive actually receives after
                  payment of any federal or state taxes payable thereon equals
                  the amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Executive on an annualized basis
                  multiplied by three.

                           (ii)     For a period of three years from the
         Executive's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Executive and the
         Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive (or Executive's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Executive
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Executive or
         the Executive's family is precluded from continuing participation in
         any of the foregoing plans, programs, practices or policies for any
         portion of such three year period, the Executive shall be provided with
         the after-tax economic equivalent of the benefits that would have been
         provided under such plans, programs, practices and policies for the
         portion of such three year period in which the Executive or Executive's
         family is unable to participate for the full period of three years.

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                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Executive, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     The Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services, the scope
         and provider of which shall be selected by the Executive in his sole
         discretion.

                           (v)      All country club memberships, luncheon clubs
         and other memberships which the Company was providing for the
         Executive's or his family's use prior to the time that the Notice of
         Termination is given shall be transferred and assigned to the Executive
         at no cost to the Executive, the cost of transfer, if any, to be borne
         by the Company.

                           (vi)     At the Executive's sole discretion, the
         Company shall either transfer to the Executive ownership and title to
         the Executive's company car at no cost (other than any individual
         income taxes owed by the Executive) to the Executive or, if the
         Executive receives a monthly car allowance in lieu of a Company car,
         pay the Executive a lump sum in cash within 30 days after the
         Executive's Date of Termination equal to the Executive's annual car
         allowance multiplied by three.

                           (vii) To the extent not theretofore paid or provided,
         the Company shall timely pay or provide to the Executive any other
         amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (viii)   If the Executive's employment is terminated
         by reason of the Executive's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Executive's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Executive's death.

                           (ix)     If the Executive's employment is terminated
         by reason of the Executive's Disability, then Other Benefits (as
         defined in this Section) shall also include, without limitation, and
         the Executive shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Executive's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Executive's employment is terminated
for Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the
Executive (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Executive and (z) Other
Benefits, in each case to the extent theretofore unpaid.

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                  (c)      Termination by Executive Other Than for Good Reason.
If the Executive voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Executive's employment
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Executive
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Except as otherwise provided herein, amounts which are vested benefits, which
vest according to the terms of this Agreement or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement. If the
Executive has any other employment or similar agreement with the Company at the
Date of Termination, the Executive agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not both
agreements, and when the Executive has made such election, the other agreement
shall be superseded in its entirety and shall be of no further force and effect.
The Executive also agrees that to the extent he may be eligible for any
severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Executive Retirement Plan ("ERP"), if the Executive's employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereto (including as

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a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax or other
tax imposed by Section 4999 of the Code (and any successor provisions or
sections to Section 4999) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b)      Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm, absent manifest error,
shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                  (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Executive is informed in writing of such claim, and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice
to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the

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Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

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                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

         9.       Confidential Information. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies, provided that it shall not apply to information which is
or shall become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement), information
that is developed by the Executive independently of such information, or
knowledge or data or information that is disclosed to the Executive by a third
party under no obligation of confidentiality to the Company. After termination
of the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company or as may otherwise be required by law
or legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         10.      Successors.

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

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

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         11.      Miscellaneous.

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

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

                  If to the Executive:   Lisa W. Rodriguez
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027

                  If to the Company:     Weatherford International Ltd.
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027
                                         Attention: General Counsel

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

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

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

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

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

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

                                             /s/ Lisa W. Rodriguez
                              --------------------------------------------------
                                                 Lisa W. Rodriguez

                              WEATHERFORD INTERNATIONAL LTD.

                              By:           /s/ Bernard J. Duroc-Danner
                                 -----------------------------------------------
                                              Bernard J. Duroc-Danner
                                   Chairman, President & Chief Executive Officer

<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into as of
August 1, 2003 (the "Effective Date"), by and between Weatherford International
Ltd., a Bermuda exempted company (the "Company"), and Gary L. Warren (the
"Executive").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the parties hereto do hereby agree:

         1.       Certain Definitions.

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

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

                  (c)      "Board" shall mean the Board of Directors of the
Company.

                  (d)      "Cause" shall mean:

                           (i)      the willful and continued failure of the
Executive to substantially perform the Executive's duties with the Company
(other than any such failure resulting from incapacity due to physical or mental
illness or anticipated failure after the issuance of a Notice of Termination for
Good Reason by the Executive pursuant to Section 4(d)), after a written demand
for substantial performance is delivered to the Executive by the Board which
specifically identifies the manner in which the Executive has not substantially
performed the Executive's duties, or

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

                  No act, or failure to act, on the part of the Executive shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or upon the instructions of the Chief Executive Officer or of a more
senior officer of the Company or based upon the advice of counsel for the
Company (which may be the General Counsel or other counsel employed by the
Company or its subsidiaries) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of
the Company. The cessation of employment of the Executive shall not be

<PAGE>

deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to the Executive, and the Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, the Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail.

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

                           (i)      any Person is or becomes the Beneficial
         Owner, directly or indirectly, of 20 percent or more of either (A) the
         then outstanding common shares of the Company (the "Outstanding Company
         Common Stock") or (B) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities"),
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction that complies with clauses (A), (B) and (C) of
         paragraph (iii) below;

                           (ii)     individuals, who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least two-thirds 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 Company's 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 (which, for purposes of this
         Agreement, shall include, without limitation, any corporation,
         partnership, association, joint-stock company, limited liability
         company, trust, unincorporated organization or other business entity)
         who were the beneficial owners, respectively, of the Outstanding
         Company Common Stock and Outstanding Company 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 Company's 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 Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any entity resulting from such Corporate
         Transaction or any employee benefit plan (or related trust) of the
         Company or such entity resulting from such Corporate Transaction)
         beneficially owns, directly or indirectly, 20 percent or more of,
         respectively, the then outstanding shares of common stock of the entity
         resulting from such Corporate Transaction or the combined voting power
         of the then outstanding voting securities of such entity except to the
         extent that such ownership existed prior

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<PAGE>

         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

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

                  (f)      "Company's Assets" shall mean the assets (of any
kind) owned by the Company, including, without limitation, the securities of the
Company's direct and indirect subsidiaries and any of the assets owned by such
subsidiaries.

                  (g)      "Disability" shall mean the absence of the Executive
from performance of the Executive's duties with the Company on a substantial
basis for 120 calendar days as a result of incapacity due to mental or physical
illness.

                  (h)      "Employment Period" shall mean the period commencing
on the Effective Date and ending on the third anniversary of the Effective Date;
provided, however, that commencing on the date one year after the Effective
Date, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Employment Period shall be automatically
extended so as to terminate three years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Employment Period shall not be so extended.

                  (i)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended from time to time.

                  (j)      "Good Reason" shall mean the occurrence of any of the
following:

                           (i)      the assignment to the Executive of any
         position, authority, duties or responsibilities inconsistent with the
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties or responsibilities as contemplated by
         Section 3(a) of this Agreement, or any other action by the Company
         which results in a diminution in such position, authority, duties or
         responsibilities, excluding for this purpose an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company promptly after receipt of notice thereof given by the
         Executive;

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

                           (iii)    any failure by the Company to continue to
         provide the Executive with benefits currently enjoyed by the Executive
         under any of the Company's compensation, bonus, retirement, pension,
         savings, life insurance, medical, health and accident, or disability
         plans, or the taking of any other action by the Company which would
         directly or indirectly reduce any of such benefits or deprive the
         Executive of any fringe benefits or perquisites currently enjoyed by
         the Executive;

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<PAGE>

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

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

                           (vi)     any failure by the Company to comply with
         and satisfy Section 10(b) of this Agreement; or

                           (vii)    following a Change of Control, the giving of
         notice by the Company to the Executive that the Employment Period shall
         not be extended.

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

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

                  (k)      "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof, except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering by the
Company of such securities, or (iv) a corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in the same
proportions as their ownership of common shares of the Company.

         2.       Employment Period. The Company hereby agrees that the Company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company subject to the terms and conditions of this
Agreement during the Employment Period. During the Employment Period, the
Executive, with his/her prior express agreement, may be seconded to the
employment of Weatherford U.S., L.P. (or such other affiliated entity as
specifically agreed by the Executive) (the "Seconded Affiliate Company"), but
without prejudice to the Company's obligations or the Executive's rights under
this Agreement. The Executive shall carry out his/her duties as if they were
duties to be performed on behalf of the Company. Each Seconded Affiliate Company
shall be subject to all of the obligations and agreements of the Company under
this Agreement and the Company shall be responsible for actions and inactions of
the Seconded Affiliate Company. Any breach or failure to abide by the terms and
conditions of this Agreement by a Seconded Affiliate Company shall be deemed to
constitute a breach or failure to abide by the Company. The Executive has the
right, in his/her sole discretion, to revoke his/her agreement to be seconded to
the employment of any Seconded Affiliate Company at any time.

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         3.       Terms of Employment.

                  (a)      Position and Duties.

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

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

                  (b)      Compensation.

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

                           (ii)     Annual Bonus. The Executive shall be
         eligible for an annual bonus for each fiscal year ending during the
         Employment Period on the same basis as other executive officers under
         the Company's executive officer annual incentive program. Each such
         Annual Bonus shall be paid no later than the end of the third month of
         the fiscal year next following the fiscal year for which the Annual
         Bonus is awarded.

                           (iii)    Incentive, Savings and Retirement Plans.
         During the Employment Period, the Executive shall be entitled to
         participate in all incentive, savings and retirement plans, practices,
         policies and programs applicable generally to all executive officers of
         the Company and its affiliated companies, but in no event shall such
         plans, practices, policies and programs provide the Executive with
         incentive opportunities (measured with respect to both regular and
         special

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         incentive opportunities, to the extent, if any, that such distinction
         is applicable), savings opportunities and retirement benefit
         opportunities, in each case, less favorable, in the aggregate, than the
         most favorable of those provided by the Company and its affiliated
         companies for the Executive under such plans, practices, policies and
         programs as in effect on the date hereof. As used in this Agreement,
         the term "affiliated companies" shall include any company controlled
         by, controlling or under common control with the Company.

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

                           (v)      Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to (A) at Executive's option, a
         monthly car allowance or use of an automobile and (B) such other fringe
         benefits (including, without limitation, payment of club dues,
         financial planning services, cellular telephone, mobile email, annual
         physical examinations, payment of professional fees and professional
         taxes and payment of related expenses, as appropriate) in accordance
         with the most favorable plans, practices, programs and policies of the
         Company and its affiliated companies in effect for the Executive on the
         date hereof.

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

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

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

                  (c)      Termination of Prior Agreements. The Executive
acknowledges and agrees that this Agreement is being executed in replacement of
any and all Employment Agreements existing between the Executive and Weatherford
International, Inc. or its Affiliates (the "Prior Agreements"). As a result, the
Executive and the Company agree that the Prior Agreements are hereby terminated
and of no further force and effect.

         4.       Termination of Employment.

         (a)      Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period, it may provide the Executive

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with written notice in accordance with Section 11(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective 30 days after
receipt of such notice by the Executive (the "Disability Effective Date"),
provided that within the 30-day period after such receipt, the Executive shall
not have returned to full-time performance of the Executive's duties. In
addition, if a physician selected by the Executive determines that the
Disability of the Executive has occurred, the Executive (or his representative)
may provide the Company with written notice in accordance with Section 11(b) of
this Agreement of the Executive's intention to terminate his employment. In such
event, the Disability Effective Date shall be 30 days after receipt of such
notice by the Company.

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

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

                  (d)      Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 11(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date, in the case of a notice by the Company, shall be
not more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

                  (e)      Date of Termination. "Date of Termination" shall
mean:

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

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

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

         5.       Obligations of the Company Upon Termination.

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

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                           (i)      The Company shall pay to the Executive (or
         Executive's heirs, beneficiaries or representatives as applicable) in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (A)      the sum of (1) the Executive's
                  Annual Base Salary through the Date of Termination to the
                  extent not theretofore paid, (2) the product of (x) the higher
                  of (I) the highest Annual Bonus received by the Executive in
                  the preceding five calendar years and (II) the Annual Bonus
                  that would be payable in respect of the current fiscal year
                  (and annualized for any fiscal year consisting of less than 12
                  months) (such higher amount being referred to as the "Highest
                  Annual Bonus") and (y) a fraction, the numerator of which is
                  the number of days in the current fiscal year through the Date
                  of Termination, and the denominator of which is 365, and (3)
                  any compensation previously deferred by the Executive under
                  any deferred compensation plan sponsored by the Company
                  (together with any accrued interest or earnings thereon), and
                  any accrued vacation pay, in each case to the extent not
                  theretofore paid (the sum of the amounts described in clauses
                  (1), (2) and (3) shall be hereinafter referred to as the
                  "Accrued Obligations");

                                    (B)      an amount equal to three times the
                  sum of (i) the highest Annual Base Salary received by the
                  Executive in the last five years ended prior to the
                  Termination Date and (ii) the Highest Annual Bonus;

                                    (C)      an amount equal to the total of the
                  employer basic and matching contributions credited to the
                  Executive under the Company's 401(k) Savings Plan (the "401(k)
                  Plan") and all other deferred compensation plans (excluding
                  the Company's ERP (as defined below)) during the 12-month
                  period immediately preceding the month of the Executive's Date
                  of Termination multiplied by three, such amount to be grossed
                  up so that the amount the Executive actually receives after
                  payment of any federal or state taxes payable thereon equals
                  the amount first described above; and

                                    (D)      the total value of all fringe
                  benefits received by the Executive on an annualized basis
                  multiplied by three.

                           (ii)     For a period of three years from the
         Executive's Date of Termination, or such longer period as may be
         provided by the terms of the appropriate plan, program, practice or
         policy, the Company shall continue benefits to the Executive and the
         Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 3(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive (or Executive's heirs or
         beneficiaries as applicable) shall continue to pay the monthly employee
         contribution for same, and provided further, that if the Executive
         becomes re-employed by another employer and is eligible to receive
         medical or other welfare benefits under another employer provided plan,
         the medical and other welfare benefits described herein shall be
         secondary to those provided under such other plan during such
         applicable period of eligibility. To the extent that the Executive or
         the Executive's family is precluded from continuing participation in
         any of the foregoing plans, programs, practices or policies for any
         portion of such three year period, the Executive shall be provided with
         the after-tax economic equivalent of the benefits that would have been
         provided under such plans, programs, practices and policies for the
         portion of such three year period in which the Executive or Executive's
         family is unable to participate for the full period of three years.

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                           (iii)    All benefits and amounts under the Company's
         deferred compensation plan and all other benefit plans (except as
         specifically provided for in Section 6(b) below), including all stock
         options, restricted stock or other stock-based awards held by the
         Executive, not already vested shall become immediately 100% vested and
         fully exercisable as of the Date of Termination.

                           (iv)     The Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services, the scope
         and provider of which shall be selected by the Executive in his sole
         discretion.

                           (v)      All country club memberships, luncheon clubs
         and other memberships which the Company was providing for the
         Executive's or his family's use prior to the time that the Notice of
         Termination is given shall be transferred and assigned to the Executive
         at no cost to the Executive, the cost of transfer, if any, to be borne
         by the Company.

                           (vi)     At the Executive's sole discretion, the
         Company shall either transfer to the Executive ownership and title to
         the Executive's company car at no cost (other than any individual
         income taxes owed by the Executive) to the Executive or, if the
         Executive receives a monthly car allowance in lieu of a Company car,
         pay the Executive a lump sum in cash within 30 days after the
         Executive's Date of Termination equal to the Executive's annual car
         allowance multiplied by three.

                           (vii)    To the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (collectively, the "Other Benefits").

                           (viii)   If the Executive's employment is terminated
         by reason of the Executive's death, then Other Benefits (as defined in
         this Section) shall also include, without limitation, and the
         Executive's estate and/or beneficiaries shall be entitled to receive,
         benefits at least equal to the most favorable benefits provided by the
         Company and its affiliated companies to the estates and beneficiaries
         of the executive officers of the Company and such affiliated companies
         under such plans, programs, practices and policies relating to death
         benefits, if any, in effect on the date hereof or, if more favorable,
         those in effect on the date of the Executive's death.

                           (ix)     If the Executive's employment is terminated
         by reason of the Executive's Disability, then Other Benefits (as
         defined in this Section) shall also include, without limitation, and
         the Executive shall be entitled after the Disability Effective Date to
         receive, disability and other benefits at least equal to the most
         favorable benefits generally provided by the Company and its affiliated
         companies to the Executive's disabled peer executive officers and/or
         their families in accordance with such plans, programs, practices and
         policies relating to disability, if any, in effect generally on the
         date hereof or, if more favorable, those in effect at the time of the
         Disability

                  (b)      Cause. If the Executive's employment is terminated
for Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than the obligation to pay to the
Executive (x) his Annual Base Salary through the Date of Termination, (y) the
amount of any compensation previously deferred by the Executive and (z) Other
Benefits, in each case to the extent theretofore unpaid.

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<PAGE>

                  (c)      Termination by Executive Other Than for Good Reason.
If the Executive voluntarily terminates his employment during the Employment
Period for any reason other than for Good Reason, the Executive's employment
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations and Other Benefits and the rights provided in
Section 6. In such case, all Accrued Obligations shall be paid to the Executive
in a lump sum in cash within 30 days after the Date of Termination subject to
such other options or restrictions as provided by law.

         6.       Other Rights.

                  (a)      Except as provided herein, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Except as otherwise provided herein, amounts which are vested benefits, which
vest according to the terms of this Agreement or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement. If the
Executive has any other employment or similar agreement with the Company at the
Date of Termination, the Executive agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not both
agreements, and when the Executive has made such election, the other agreement
shall be superseded in its entirety and shall be of no further force and effect.
The Executive also agrees that to the extent he may be eligible for any
severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

                  (b)      With respect solely to the Company's Nonqualified
Executive Retirement Plan ("ERP"), if the Executive's employment is terminated
for any reason whatsoever, with or without Cause, and no Change of Control has
occurred or is pending, any ERP benefits payable shall only be those that are
payable, if any, under the terms of the ERP as of the Date of Termination.

         7.       Full Settlement.

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

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

                  (c)      Legal Fees. The Company agrees to pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by the Company or the Executive of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereto (including as

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<PAGE>

a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Internal Revenue Code of 1986, as amended (the "Code").

         8.       Certain Additional Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
the Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 8) (a "Payment") would be subject to the excise tax or other
tax imposed by Section 4999 of the Code (and any successor provisions or
sections to Section 4999) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments.

                  (b) Subject to the provisions of Section 8(c), all
determinations required to be made under this Section 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by PricewaterhouseCoopers or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm, absent manifest error,
shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 8(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                  (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service (the "IRS") that, if successful, would
require the payment by the Company of the Gross-Up Payment (or an additional
Gross-Up Payment) in the event the IRS seeks higher payment. Such notification
shall be given as soon as practicable, but no later than ten business days after
the Executive is informed in writing of such claim, and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which he gives such notice
to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the

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Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

                           (i)      give the Company any information reasonably
         requested by the Company relating to such claim,

                           (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)    cooperate with the Company in good faith in
         order to effectively contest such claim, and

                           (iv)     permit the Company to participate in any
         proceedings relating to such claims;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such costs and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issues raised by the IRS or any other taxing authority.

                  (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 8(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 8(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

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<PAGE>

                  (e)      Any provision in this Agreement or any other plan or
agreement to the contrary notwithstanding, if the Company is required to pay a
Gross-Up Payment pursuant to the provisions of this Agreement and pursuant to
the provisions of another plan or agreement, then the Company shall pay the
greater of the amount determined pursuant to this Agreement or the amount
determined pursuant to the provisions of such other plan or agreement, but in no
event shall the Company pay amounts pursuant to both provisions.

         9.       Confidential Information. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies, provided that it shall not apply to information which is
or shall become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement), information
that is developed by the Executive independently of such information, or
knowledge or data or information that is disclosed to the Executive by a third
party under no obligation of confidentiality to the Company. After termination
of the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company or as may otherwise be required by law
or legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In no event shall
an asserted violation of the provision of this Section 9 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         10.      Successors.

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

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

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<PAGE>

         11.      Miscellaneous.

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

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

                  If to the Executive:        Gary L. Warren
                                              515 Post Oak Blvd., Suite 600
                                              Houston, Texas 77027

                  If to the Company:          Weatherford International Ltd.
                                              515 Post Oak Blvd., Suite 600
                                              Houston, Texas 77027
                                              Attention: General Counsel

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

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

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

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

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

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<PAGE>

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

                                                /s/ Gary L. Warren
                              --------------------------------------------------
                                                  Gary L. Warren

                              WEATHERFORD INTERNATIONAL LTD.

                              By:           /s/ Bernard J. Duroc-Danner
                                 -----------------------------------------------
                                              Bernard J. Duroc-Danner
                                   Chairman, President & Chief Executive Officer

                                      150exv10w2w3

 

Exhibit 10.2.3

THIRD AMENDMENT TO

SENIOR SECURED CREDIT AGREEMENT

     THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT (this “Amendment”),
dated as of July 31, 2003 (the “Amendment Date”), is among INTERSTATE OPERATING
COMPANY, L.P. (fka MeriStar H & R Operating Company, L.P.), a Delaware limited
partnership, as the Borrower (“Borrower”); the Guarantors; SOCIÉTÉ GÉNÉRALE, as
Administrative Agent (the “Administrative Agent”); and the Lenders a party
hereto.

RECITALS:

     A. The Borrower; the Administrative Agent; the Lenders and certain other
parties are party to that certain Senior Secured Credit Agreement dated as of
July 31, 2002, as amended by First Amendment to Senior Secured Credit Agreement
dated as of August 15, 2002 and Second Amendment to Senior Secured Credit
Agreement dated as of January 10, 2003 (as amended, the “Original Credit
Agreement”).

     B. The Borrower desires to

     C. The parties hereto desire to amend the Original Credit Agreement and
the other Credit Documents (as defined in the Original Credit Agreement) as
hereinafter provided.

     NOW, THEREFORE, for and in consideration of the covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

     1. All terms used in this Amendment, but not defined herein, shall have
the meaning given such terms in the Original Credit Agreement.

     2. This Amendment shall become effective as of the Amendment Date if on or
prior to the close of business on August 11, 2003 (the “Termination Date”) the
following conditions precedent have been satisfied:

	 	a.
	 	Documentation. The Administrative Agent shall have received
counterparts of this Amendment executed by the Borrower, the
Guarantors and the Required Lenders.

	 	b.
	 	Representations and Warranties. The representations and
warranties contained in this Amendment, and in each Credit Document
shall be true and correct in all material respects both as of the
Amendment Date and the date the other conditions to this Amendment’s
effectiveness are satisfied except for changes which individually or
in the aggregate do not constitute a Material Adverse Change.

 

 

	 	c.
	 	No Default. No Default or Event of Default shall exist as of
either the Amendment Date or the date the other conditions to this
Amendment’s effectiveness are satisfied.

	 	d.
	 	Subordinated Credit Agreement. The Subordinated Credit
Agreement shall be amended in form and substance satisfactory to the
Administrative Agent so that the Leverage Ratio covenant contained
in Section 7.03 of the Subordinated Credit Agreement shall be
amended to provide for a maximum Leverage Ratio on every date which
is at least .50 (.25 for the period from the Status Reset Date
during the Fiscal Quarter commencing January 1, 2004 to the day
immediately prior to the Status Reset Date during the Fiscal Quarter
commencing April 1, 2004) greater than the maximum Leverage Ratio
for each such date required under the Credit Agreement pursuant to
this Amendment.

	 	e.
	 	Fees. The Administrative Agent shall have received for the
benefit of each Lender that executes and delivers this Amendment to
the Administrative Agent’s counsel by 5:00 p.m. EST on August 8,
2003 an amendment fee equal to fifteen (15) basis points times such
Lender’s Commitment.

If this Amendment does not become effective prior to the Termination Date, this
Amendment shall be null and void; provided however that the Borrower shall
still be obligated to reimburse Société Generale for costs and expenses
incurred in connection with this Amendment.

     3. The term “Credit Agreement” as used in the Credit Documents, shall mean
the Original Credit Agreement, as amended by this Amendment.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-2-

 

     4. From and after the Amendment Date, the chart set forth in Section 7.03
of the Credit Agreement is deleted in its entirety and replaced with the
following chart:

	 	 	 	 	 
	Beginning Date of	 	Ending Date of Applicable	 	 
	Applicable Period	 	Period	 	Leverage Ratio
	
	 	
	 	

	Closing Date	 	
The day immediately prior
to the Status Reset Date
during the Fiscal Quarter
commencing October 1, 2002
	 	5.50 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal Quarter
commencing October 1, 2002	 	
The day immediately prior
to the Status Reset Date
during the Fiscal Quarter
commencing January 1, 2003
	 	5.00 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal Quarter
commencing January 1, 2003	 	
The day immediately prior
to the Status Reset Date
during the Fiscal Quarter
commencing July 1, 2003
	 	4.75 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal Quarter
commencing July 1, 2003	 	
The day immediately prior
to the Status Reset Date
during the Fiscal Quarter
commencing October 1, 2003
	 	4.45 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal Quarter
commencing October 1, 2003	 	
The day immediately prior
to the Status Reset Date
during the Fiscal Quarter
commencing April 1, 2004
	 	4.25 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal Quarter
commencing April 1, 2004	 	
The day immediately prior
to the Status Reset Date
during the Fiscal Quarter
commencing January 1, 2005
	 	4.00 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal Quarter
commencing January 1, 2005	 	
No ending date
	 	3.50 to 1.00

-3-

 

     5. From and after the Amendment Date, the chart set forth in Section 7.04
of the Credit Agreement is deleted in its entirety and replaced with the
following chart:

	 	 	 	 	 
	Beginning Date of	 	Ending Date of Applicable	 	 
	Applicable Period	 	Period	 	Senior Leverage Ratio
	
	 	
	 	

	Closing Date	 	
The day immediately
prior to the Status
Reset Date during the
Fiscal Quarter
commencing January 1, 2003
	 	4.00 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal
Quarter commencing
January 1, 2003	 	
The day immediately
prior to the Status
Reset Date during the
Fiscal Quarter
commencing January 1, 2004
	 	3.25 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal
Quarter commencing
January 1, 2004	 	
The day immediately
prior to the Status
Reset Date during the
Fiscal Quarter
commencing April 1, 2004
	 	3.00 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal
Quarter commencing
April 1, 2004	 	
The day immediately
prior to the Status
Reset Date during the
Fiscal Quarter
commencing October 1, 2004
	 	2.75 to 1.00
	 	 	 	 	 
	The Status Reset Date
during the Fiscal
Quarter commencing
October 1, 2004	 	
No ending date
	 	2.50 to 1.00

     6. Each party hereto represents to the other parties hereto that such
party is authorized to execute this Amendment. In addition, the Borrower and
the Guarantors represent and warrant to the Lenders and the Administrative
Agent that (a) the representations and warranties contained in this Amendment,
and in each Credit Document are true and correct in all material respects as of
the Amendment Date except for changes which individually or in the aggregate do
not constitute a Material Adverse Change, (b) no Default or Event of Default
exists as of the Amendment Date except for any such Default or Event of Default
as is expressly waived or eliminated by this Amendment, and (c) such Persons
have no claims, offsets, or counterclaims with respect to their respective
obligations under the Credit Documents as of the Amendment Date.

     7. This Amendment may be executed in multiple counterparts, each of which
shall be an original, but all of which shall constitute but one Amendment.

-4-

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

EXECUTED as of the date first referenced above.

	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	INTERSTATE OPERATING COMPANY, L.P.
	 	 	 	 	 
	 	 	
By:
	 	Interstate Hotels & Resorts, Inc., its general partner
	 
	 	 	 	 	By:	 
	 	 	 	 	 	

	 	 	 	 	Name:	 
	 	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	SOCIÉTÉ GÉNÉRALE, individually as a
Lender and as Administrative Agent, the
Issuing Bank and the Alternate Currency
Swing Line Lender
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Thomas K. Day

Managing Director

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	CITICORP REAL ESTATE, INC.
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	LEHMAN COMMERCIAL PAPER INC.
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	CREDIT LYONNAIS NEW YORK BRANCH,
individually as a Lender and as
Documentation Agent
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, acting through its

New York Agency
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

ACCESSION AGREEMENT, JOINDER, CONSENT AND RATIFICATION

Each of the following entities (each a “Company”) which is not yet a Guarantor
under the Senior Secured Credit Agreement dated as of July 31, 2002 (as amended
or modified from time to time, the “Credit Agreement”) among MERISTAR
HOSPITALITY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, as the
Borrower, SOCIÉTÉ GÉNÉRALE, as Administrative Agent (the “Administrative
Agent”), the Lenders and the other parties thereto, hereby agrees with (i) the
Administrative Agent and the Lenders under the Credit Agreement; (ii) the
parties to the Environmental Indemnification Agreement (the “Environmental
Indemnity”) dated as of even date as the Credit Agreement and executed in
connection with the Credit Agreement, (iii) the parties to the Guaranty and
Contribution Agreement (the “Guaranty”) dated as of even date as the Credit
Agreement and executed in connection with the Credit Agreement, and (iv) the
parties to the Pledge Agreement (the “Pledge Agreement”) dated as of even date
as the Credit Agreement and executed in connection with the Credit Agreement,
as follows:

     Each Company hereby agrees and confirms that, as of the date hereof, it
(a) intends to be a party to the Environmental Indemnity, the Guaranty and the
Pledge Agreement and undertakes to perform all the obligations expressed
therein, respectively, of an Indemnitor, a Guarantor and a Debtor (as defined
in the Environmental Indemnity, the Guaranty and the Pledge Agreement,
respectively), (b) agrees to be bound by all of the provisions of the
Environmental Indemnity, the Guaranty and the Pledge Agreement as if it had
been an original party to such agreements, (c) confirms that the
representations and warranties set forth in the Environmental Indemnity, the
Guaranty and the Pledge Agreement, respectively, with respect to the Company, a
party thereto, are true and correct in all material respects as of the date of
this Accession Agreement and (d) has received and reviewed copies of each of
the Environmental Indemnity, the Guaranty and the Pledge Agreement.

     For purposes of notices under the Environmental Indemnity, the Guaranty
and the Pledge Agreement the address for each Company shall be the same address
as the address of the Parent.

     The Guarantors (including each Company and all previously existing
Guarantors) join in and consent to the terms and provisions of the attached
Amendment and agree that the Security Agreement, the Environmental
Indemnification Agreement and the Guaranty and Contribution Agreement (the
“Guaranty”) to which each of the Guarantors is a party each dated July 31, 2002
remain in full force and effect, and further that the Guaranteed Obligations
(as defined in the Guaranty) include the additional obligations of the Borrower
under the attached Amendment.

     This Accession Agreement, Joinder, Consent and Ratification is dated as of
the date of the Amendment.

 

 

	 	 	 	 	 
	 	 	GUARANTORS:
	 
	 	 	
INTERSTATE HOTELS & RESORTS, INC.

a Delaware corporation

	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	BRIDGESTREET CORPORATE HOUSING WORLDWIDE, INC.

a Delaware corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	MERISTAR MANAGEMENT (CANMORE) LTD.

a British Columbia (Canada) corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	MERISTAR MANAGEMENT

(VANCOUVER-METRTOWN) LTD.

a British Columbia (Canada) corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	BRIDGESTREET CANADA, INC.

an Ontario (Canada) corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	BRIDGESTREET ACCOMMODATIONS, LTD.

Incorporated under the laws of England and Wales
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	BRIDGESTREET ACCOMMODATIONS

LONDON LIMITED

Incorporated under the laws of England and Wales
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	BRIDGESTREET WARDROBE PLACE LIMITED

Incorporated under the laws of England and Wales
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	LORYT(1) LIMITED

Incorporated under the laws of England and Wales
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	APALACHEE BAY SAS

Incorporated under the laws of France
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE MANAGEMENT COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	MERISTAR AGH COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	CAPSTAR WINSTON COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	CAPSTAR BK COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	CAPSTAR KCII COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	CAPSTAR WYANDOTTE COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	CAPSTAR ST. LOUIS COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	MERISTAR LAUNDRY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	MERISTAR PRESTON CENTER, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	MERISTAR HGI COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	MERISTAR STORRS COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	MERISTAR VACATIONS, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	THE NETEFFECT STRATEGIC ALLIANCE, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	MERISTAR FLAGSTONE, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	MeriStar H & R Operating Company, L.P.

a Delaware limited partnership, its managing member
	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Interstate Hotels & Resorts, Inc.

a Delaware corporation, its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET MARYLAND, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET MINNEAPOLIS, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET MIDWEST, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET ARIZONA, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET NEVADA, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET SOUTHWEST, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET OHIO, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET CALIFORNIA, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET COLORADO, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET NORTH CAROLINA, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET RALEIGH, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	MeriStar H & R Operating Company, L.P.

a Delaware limited partnership, their sole member
	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Interstate Hotels & Resorts, Inc.

a Delaware corporation, its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BRIDGESTREET TEXAS, L.P.

a Delaware limited partnership
	 	 	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	BridgeStreet Nevada, LLC

a Delaware limited liability company, its partner

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	MeriStar H & R Operating Company, L.P.

a Delaware limited partnership, its member
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:
	 	Interstate Hotels & Resorts, Inc.

a Delaware corporation, its

general partner

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	BridgeStreet Arizona, LLC

a Delaware limited liability company, its partner

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	MeriStar H & R Operating Company, L.P.

a Delaware limited partnership, its member
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:
	 	Interstate Hotels & Resorts, Inc.

a Delaware corporation, its

general partner
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	INTERSTATE HOTELS COMPANY

a Delaware corporation
	 	 	 	 	 
	 	 	INTERSTATE INVESTMENT CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	INTERSTATE PARTNER CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	INTERSTATE PROPERTY CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	INTERSTATE/KP HOLDING CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	NORTHRIDGE HOLDINGS, INC.
a Delaware corporation
	 	 	 	 	 
	 	 	IHC HOLDINGS, INC.
a Delaware corporation
	 	 	 	 	 
	 	 	INTERSTATE MEMBER INC.
a Delaware corporation
	 	 	 	 	 
	 	 	CROSSROADS HOSPITALITY MANAGEMENT COMPANY

a Delaware corporation
	 	 	 	 	 
	 	 	COLONY HOTELS AND RESORTS COMPANY

a Delaware corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	NORTHRIDGE INSURANCE COMPANY

a corporation organized under the laws of the Cayman Islands
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 
	 	 	INTERSTATE PROPERTY PARTNERSHIP, L.P.

a Delaware limited partnership	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Interstate Property Corporation

a Delaware corporation, its general partner

	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE/DALLAS GP, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Interstate Property Corporation

a Delaware corporation, its managing member

	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE KISSIMMEE PARTNER, L.P.

a Delaware limited partnership
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Interstate/KP Holding Corporation

a Delaware corporation, its general partner

	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	
	 	 

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE PITTSBURGH HOLDINGS, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE MANCHESTER COMPANY, L.L.C.

a Delaware limited liability company
	 
	 	 	
By:
	 	Interstate Property Partnership, L.P.

a Delaware limited liability company, their sole member
	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Interstate Property Corporation

a Delaware corporation, its general partner

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE HOUSTON PARTNER, L.P.

a Delaware limited partnership
	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE/DALLAS PARTNERSHIP, L.P.

a Delaware limited partnership
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Interstate Property Corporation

a Delaware corporation, their general partner

	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE HOTELS, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Northridge Holdings, Inc.

a Delaware corporation, its managing member

	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 
	 	 	CONTINENTAL DESIGN AND SUPPLIES COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	IHC MOSCOW SERVICES, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	PAH-HILLTOP GP, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	PAH-CAMBRIDGE HOLDINGS, LLC

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS HOSPITALITY COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	IHC INTERNATIONAL DEVELOPMENT (UK), L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	IHC SERVICES COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS HOSPITALITY TENANT COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Interstate Hotels, LLC

a Delaware limited liability company, their managing member

	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Northridge Holdings, Inc.

a Delaware corporation, its managing member

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	

 

 

     [SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 
	 	 	HILLTOP
EQUIPMENT LEASING COMPANY, L.P

a Delaware limited partnership
	 	 	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	PAH-Hilltop GP, LLC

a Delaware limited liability company, its general partner

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Interststate Hotels, LLC

a Delaware limited liability company, its sole member

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:
	 	Northridge Holdings, Inc.

a Delaware corporation, its managing member

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 	 	 	

 

 

     [SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 
	 	 	IHC/MOSCOW CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:

Title:
	 	Christopher L. Bennett

Senior Vice President and Secretary
	 	 	 	 	 
	 	 	FUTURE FINANCING MEMBER CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:

Title:
	 	Christopher L. Bennett

Senior Vice President and Secretary
	 	 	 	 	 
	 	 	CROSSROADS/MEMPHIS FINANCING CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:

Title:
	 	Christopher L. Bennett

Senior Vice President and Secretary
	 	 	 	 	 
	 	 	CROSSROADS/MEMPHIS FINANCING II CORPORATION

a Delaware corporation
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:

Title:
	 	Christopher L. Bennett

Senior Vice President and Secretary

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS FUTURE COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Interstate Member, Inc.

a Delaware corporation, its member

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	Name:	 	Christopher L. Bennet

	 	 	 	 	Title:	 	Senior Vice President and Secretary

	 	 	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Crossroads Hospitality Company, LLC

a Delaware limited liability company, its member
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Interstate Member, Inc.

a Delaware corporation, its member

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:

Title:
	 	Christopher L. Bennett
Senior Vice President Secretary
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Interstate Hotels, LLC

a Delaware limited liability company, its managing member

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: 	 	Northridge Holdings, Inc.
a Delaware corporation, its managing member
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:	 	Christopher L. Bennett
	 	 	 	 	 	 	 	 	Title:	 	Senior Vice President and Secretary

 

 

     [SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS FUTURE FINANCING COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
By:
	 	Crossroads Future Company, LLC

a Delaware limited liability company, its sole member

	 
	 	 	 	 	By:
	 	Interstate Member, Inc.

a Delaware corporation, its member

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:
	 	Christopher L. Bennett

	 	 	 	 	 	 	Title:
	 	Senior Vice President and Secretary

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	Crossroads Hospitality Company, L.L.C.

a Delaware limited liability company, its member

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:
	 	Interstate Member, Inc.

a Delaware corporation, its member

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Name:
	 	Christopher L. Bennett

	 	 	 	 	 	 	 	 	
Title:
	 	Senior Vice President and Secretary

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:
	 	Interstate Hotels, LLC

a Delaware limited liability company, its member

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:
	 	Northridge Holdings, Inc.

a Delaware corporation, its managing member

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	Name:
	 	Christopher L. Bennett

	 	 	 	 	 	 	 	 	 	 	Title:
	 	
Senior Vice President and Secretary

 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS/MEMPHIS COMPANY, L.L.C.

a Delaware limited liability company	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Interstate Member, Inc.

a Delaware corporation, its member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

Senior Vice President and Secretary	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Crossroads Hospitality Company, L.L.C.

a Delaware limited liability company, its member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Interstate Member, Inc.

a Delaware corporation, its member
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

Senior Vice President and Secretary	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Interstate Hotels, LLC

a Delaware limited liability company, its member
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Northridge Holdings, Inc.

a Delaware corporation, its managing member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

 Senior Vice President and Secretary	 	 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS/MEMPHIS PARTNERSHIP, L.P.

a Delaware limited partnership	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Crossroads/Memphis Company, L.L.C.

a Delaware limited liability company, its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Interstate Member, Inc.

a Delaware corporation, its member
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

Senior Vice President and Secretary	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Crossroads Hospitality Company, L.L.C.

a Delaware limited liability company, its member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Interstate Member, Inc.

a Delaware corporation, its member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

 Senior Vice President and Secretary	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Interstate Hotels, LLC

a Delaware limited liability company, its member
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Northridge Holdings, Inc.

a Delaware corporation, its managing member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

 Senior Vice President and Secretary	 	 

 

[SIGNATURE PAGE OF THIRD AMENDMENT TO SENIOR SECURED CREDIT AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS/MEMPHIS FINANCING COMPANY, L.L.C.

a Delaware limited liability company
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	CROSSROADS/MEMPHIS FINANCING COMPANY II, L.L.C.

a Delaware limited liability company	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Crossroads/Memphis Partnership, L.P.

a Delaware limited partnership, their sole member
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Crossroads/Memphis Company, L.L.C.

A Delaware limited liability company, its general partner
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Interstate Member, Inc.

a Delaware corporation, its member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

Senior Vice President and Secretary	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Crossroads Hospitality Company, L.L.C.

a Delaware limited liability company, its member
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Interstate Member, Inc.

a Delaware corporation, its member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

Senior Vice President and Secretary	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Interstate Hotels, LLC

a Delaware limited liability company, its member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	Northridge Holdings, Inc.
a Delaware corporation, its managing member	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	By:

Name:

Title:	 	____________________________

Christopher L. Bennett

 Senior Vice President and Secretary

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