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                                                                   EXHIBIT 10.22














                        WEATHERFORD INTERNATIONAL, INC.

                        1998 EMPLOYEE STOCK OPTION PLAN












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                         WEATHERFORD INTERNATIONAL, INC.

                         1998 EMPLOYEE STOCK OPTION PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                         Section
                                                                         -------
<S>   <C>                                                          <C>
ARTICLE I - PLAN

       Purpose..................................................    1.1
       Effective Date of Plan...................................    1.2

ARTICLE II - DEFINITIONS

       Affiliate................................................    2.1
       Board of Directors.......................................    2.2
       Code.....................................................    2.3
       Committee................................................    2.4
       Company..................................................    2.5
       Disinterested Person.....................................    2.6
       Employee.................................................    2.7
       Fair Market Value........................................    2.8
       Nonqualified Option......................................    2.9
       Option...................................................   2.10
       Option Agreement.........................................   2.11
       Plan.....................................................   2.12
       Stock....................................................   2.13


ARTICLE III - ELIGIBILITY

ARTICLE IV - GENERAL PROVISIONS RELATING TO OPTIONS

       Authority to Grant Options...............................    4.1
       Dedicated Shares.........................................    4.2
       Non-Transferability......................................    4.3
       Requirements of Law......................................    4.4
       Changes in the Company's Capital Structure...............    4.5

ARTICLE V - OPTIONS

       Type of Option...........................................    5.1
       Option Price.............................................    5.2
       Duration of Options......................................    5.3
       Amount Exercisable.......................................    5.4
</TABLE>

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<TABLE>
       <S>                                                         <C>
       Exercise of Options......................................    5.5
       Exercise Following Termination of Employment.............    5.6
       Substitution Options.....................................    5.7
       No Rights as Stockholder.................................    5.8

ARTICLE VI - ADMINISTRATION

ARTICLE VII - AMENDMENT OR TERMINATION OF PLAN

ARTICLE VIII - MISCELLANEOUS

       No Establishment of a Trust Fund.........................    8.1
       No Employment Obligation.................................    8.2
       Forfeiture...............................................    8.3
       Tax Withholding..........................................    8.4
       Written Agreement........................................    8.5
       Indemnification of the Committee and the Board of 
       Directors................................................    8.6
       Gender...................................................    8.7
       Headings.................................................    8.8
       Other Compensation Plans.................................    8.9
       Other Options or Awards..................................   8.10
       Governing Law............................................   8.11
</TABLE>



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                                   ARTICLE I.

                                      PLAN

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

     1.2 EFFECTIVE DATE OF PLAN.  This Plan is effective September 8,  1998.


                                  ARTICLE II.

                                  DEFINITIONS

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

     2.1 "AFFILIATE" means any parent corporation and any subsidiary
corporation. The term "parent corporation" means any corporation (other than
the Company) in an unbroken chain of corporations ending with the Company if,
at the time of the action or transaction, each of the corporations other than
the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain.
The term "subsidiary corporation" means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company if, at
the time of the action or transaction, each of the corporations other than the
last corporation in the unbroken chain owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in the chain.

     2.2 "BOARD OF DIRECTORS" means the board of directors of the Company.

     2.3 "CODE" means the Internal Revenue Code of 1986, as amended.

     2.4 "COMMITTEE" means the Compensation Committee of the Board of Directors
or such other committee designated by the Board of Directors.

     2.5 "COMPANY" means Weatherford International, Inc.

     2.6 "EMPLOYEE" means a person employed by the Company or any Affiliate to
whom an Option is granted.


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     2.7 "EXECUTIVE OFFICER" means a "officer" of the Company as defined  in
Rule 16a-1 under the Securities Exchange Act of 1934.

     2.8 "FAIR MARKET VALUE" of the Stock as of any date means (a) the closing
sales price of the Stock on that date on the principal securities exchange on
which the Stock is listed; or (b) if the Stock is not listed on a securities
exchange, the closing sales price of the Stock on that date as reported on the
New York Stock Exchange; or (c) if the Stock is not listed on the New York
Stock Exchange, the average of the high and low bid quotations for the Stock on
that date as reported by the National Quotation Bureau Incorporated; or (d) if
none of the foregoing is applicable, an amount at the election of the Committee
equal to the (x) the average between the closing bid and ask prices per Share
of Stock on the last preceding date on which those prices were reported or (y)
that amount as determined by the Committee in its sole discretion.

     2.9 "NONQUALIFIED OPTION" means an option granted under this Plan which is
not intended to satisfy the requirements of Section 422 of the Code.

     2.10 "OPTION" means a Nonqualified Option granted under this Plan to
purchase shares of Stock.

     2.11 "OPTION AGREEMENT" means the written agreement which sets out the
terms of an Option.

     2.12 "PLAN" means the Weatherford International, Inc. 1998 Employee Stock
Option Plan, as set out in this document and as it may be amended from time to
time.

     2.13 "STOCK" means the common stock of the Company, $1.00 par value (or
such other par value as may be designated by act of the Company's stockholders)
or, in the event that the outstanding shares of common stock are later changed
into or exchanged for a different class of stock or securities of the Company
or another corporation, that other stock or security.


                                  ARTICLE III.

                                  ELIGIBILITY

     The individuals who shall be eligible to receive Nonqualified Options
shall be all  employees of the Company or any of its Affiliates.  Grants will
be made to such of those employees who are eligible to participate  as the
Committee shall determine from time to time.  The Board of Directors may
designate one or more individuals who shall not be eligible to receive any
Option under this Plan or under other similar plans of the Company.




                                      -2-

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                                  ARTICLE IV.

                     GENERAL PROVISIONS RELATING TO OPTIONS

     4.1 AUTHORITY TO GRANT OPTIONS.  The Committee may grant to those
employees of the Company or any of its Affiliates, as it shall from time to
time determine, Options under the terms and conditions of this Plan.  Subject
only to any applicable limitations set out in this Plan, the number of shares
of Stock to be covered by any Option to be granted to an employee of the
Company or any of its Affiliates shall be as determined by the Committee.

     4.2 DEDICATED SHARES.  The total number of shares of Stock with respect to
which Options may be granted under the Plan shall be 5,000,000 shares.  The
shares of Stock that may be issued to employees who are not Executive Officers
may be either treasury shares or authorized but unissued shares.  The shares of
Stock that may be issued to Executive Officers may be treasury shares or, if
necessary to permit the issuance of shares upon the exercise of an Option to an
Executive Officer, subject to the receipt of all necessary approvals by the
stockholders of the Company, authorized but unissued shares.  The number of
shares stated in this Section 4.2 shall be subject to adjustment in accordance
with the provisions of Section 4.5.

     In the event that any outstanding Option shall expire or terminate for any
reason or any Option is surrendered, the shares of Stock allocable to the
unexercised portion of that Option may again be subject to an Option under the
Plan.

     4.3 NON-TRANSFERABILITY.  Options shall not be transferable by the
Employee otherwise than by will or under the laws of descent and distribution
or pursuant to a domestic relations order, and shall be exercisable, during the
Employee's lifetime, only by the Employee

     4.4 REQUIREMENTS OF LAW.

     (a) In the event the shares issuable on exercise of an Option are not
registered under the Securities Act of 1933, the Company may imprint on the
certificate for such shares the following legend or any other legend which
counsel for the Company considers necessary or advisable to comply with the
Securities Act of 1933:

           "The shares of stock represented by this certificate have not
           been registered under the Securities Act of 1933 or under the
           securities laws of any state and may not be sold or transferred
           except upon such registration or upon receipt by the
           Corporation of an opinion of counsel satisfactory to the
           Corporation, in form and substance satisfactory to the
           Corporation, that registration is not required for such sale or
           transfer."

The Company may, but shall in no event be obligated to, register any securities
covered hereby pursuant to the Securities Act of 1933 (as now in effect or as
hereafter amended) and, in the event any shares are so registered, the Company
may remove any legend on certificates representing such shares.  The Company
shall not be obligated to take any other affirmative action in order to cause


                                      -3-

<PAGE>   7


the exercise of an Option or the issuance of shares pursuant thereto to comply
with any law or regulation of any governmental authority.

     (b) The Company shall (i)  reserve a number of authorized but unissued
shares of Stock sufficient to satisfy its obligations hereunder and (ii) shall
reserve or acquire such number of treasury shares of Stock as may be necessary
from time to time to allow any vested Options that are required to be satisfied
with treasury shares to be exercised.

     4.5 CHANGES IN THE COMPANY'S CAPITAL STRUCTURE. The existence of
outstanding Options shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, or any merger or consolidation of the Company, or
any issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Common Stock or the rights thereof, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise.

     If the Company shall effect a subdivision or consolidation of shares or
other capital adjustment of, or the payment of a dividend in capital stock or
other equity securities of the Company on, its Common Stock, or other increase
or reduction of the number of shares of the Common Stock without receiving
consideration therefor in money, services, or property, or the reclassification
of its Common Stock, in whole or in part, into other equity securities of the
Company, then (a) the number, class and per share price of shares of stock
subject to outstanding Options hereunder shall be appropriately adjusted (or in
the case of the issuance of other equity securities as a dividend on, or in a
reclassification of, the Common Stock, the Options shall extend to such other
securities) in such a manner as to entitle an optionee to receive, upon
exercise of an Option, for the same aggregate cash consideration, the same
total number and class or classes of shares (or in the case of a dividend of,
or reclassification into, other equity securities, such other securities) he
would have held after such adjustment if he had exercised his Option in full
immediately prior to the event requiring the adjustment, or, if applicable, the
record date for determining stockholders to be affected by such adjustment; and
(b) the number and class of shares then reserved for issuance under the Plan
(or in the case of a dividend of, or reclassification into, other equity
securities, such other securities) shall be adjusted by substituting for the
total number and class of shares of stock then received, the number and class
or classes of shares of stock (or in the case of a dividend of, or
reclassification into, other equity securities, such other securities) that
would have been received by the owner of an equal number of outstanding shares
of Common Stock as a result of the event requiring the adjustment.  Comparable
rights shall accrue to each optionee in the event of successive subdivisions,
consolidations, capital adjustments, dividends or reclassifications of the
character described above.

     If the Company shall distribute to all holders of its shares of Common
Stock (including any such distribution made to non-dissenting stockholders in
connection with a consolidation or merger in which the Company is the surviving
corporation and in which holders of shares of Common Stock continue to hold
shares of Common Stock after such merger or consolidation) evidences of
indebtedness or cash or other assets (other than cash dividends payable out of
consolidated retained earnings not in excess of, in any one year period, the
greater of (a) in an amount per share of Common Stock equal to $1.00 per share
of Common Stock (as the same may be adjusted from time


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to time by the Board of Directors to reflect the effect of changes in
capitalization) and (b) two times the aggregate amount of dividends per share
paid during the preceding calendar year and dividends or distributions payable
in shares of Common Stock or other equity securities of the Company described
in the immediately preceding paragraph, but including stock or other securities
of any corporation or other entity owned by the Company), then in each case the
Option Price shall be adjusted by reducing the Option Price in effect
immediately prior to the record date for the determination of stockholders
entitled to receive such distribution by the fair market value, as determined
in good faith by the Board of Directors of the Company (whose determination
shall be described in a statement filed in the Company's corporate records and
be available for inspection by any holder of an Option) of the portion of the
evidence of indebtedness or cash or other assets so to be distributed
applicable to one share of Common Stock; provided that in no event shall the
Option Price be less than the par value of a share of Common Stock.  In the
event such adjustment would result in the Option Price being less than the par
value of a share of Common Stock but for the foregoing proviso, the terms of
the Option shall be appropriately adjusted so as to maintain the economic value
of the Option, including through an adjustment to the number of shares of
Common Stock subject to the Option and through a provision allowing the holder
of the Option to receive the evidence of indebtedness or cash or other assets
so to be distributed applicable to one share of Common Stock for each share of
Common Stock that may be purchased on the exercise of the Option.  Such
adjustment shall be made whenever any such distribution is made, and shall
become effective on the date of the distribution retroactive to the record date
for the determination of the stockholders entitled to receive such
distribution.  In addition, in the event the Company distributes shares or
other securities of a subsidiary corporation or other entity to the holders of
the Common Stock, the Board of Directors may, in lieu of the adjustment
provided above, either (i)make provision allowing the holder of the Option to
receive the shares or securities of the corporation or entity that are subject
to the distribution in addition to the shares of the Common Stock subject to
the Option or (ii) adjust the exercise price and number of shares subject to
the Option in a manner deemed appropriate to maintain the economic value of the
Option. In the case of an adjustment pursuant to clause (i), separate option
agreements covering each security may be used, with the Option Price to be
allocated between the securities.  Comparable adjustments shall be made in the
event of successive distributions of the character described above.

     If the Company shall make a tender offer for, or grant to all of its
holders of its shares of Common Stock the right to require the Company or any
subsidiary of the Company to acquire from such stockholders shares of, Common
Stock, at a price in excess of the Fair Market Value (a "Put Right") or the
Company shall grant to all of its holders of its shares of Common Stock the
right to acquire shares of Common Stock for less than the Fair Market Value (a
"Purchase Right") then, in the case of a Put Right, the Option Price shall be
adjusted by multiplying the Option Price in effect immediately prior to the
record date for the determination of stockholders entitled to receive such Put
Right by a fraction, the numerator of which shall be the number of shares of
Common Stock then outstanding minus the number of shares of Common Stock which
could be purchased at the Fair Market Value for the aggregate amount which
would be paid if all Put Rights are exercised and the denominator of which is
the number of shares of Common Stock which would be outstanding if all Put
Rights are exercised; and, in the case of a Purchase Right, the Option Price
shall be adjusted by multiplying the Option Price in effect immediately prior
to the record date for the determination of the stockholders entitled to
receive such Purchase Right by a fraction, the numerator of which shall be the
number of shares of Common Stock then outstanding plus the number of shares of
Common


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<PAGE>   9



Stock which could be purchased at the Fair Market Value for the aggregate
amount which would be paid if all Purchase Rights are exercised and the
denominator of which is the number of shares of Common Stock which would be
outstanding if all Purchase Rights are exercised.  In addition, the number of
shares subject to the Option shall be increased by multiplying the number of
shares then subject to the Option by a fraction which is the inverse of the
fraction used to adjust the Option Price.  Notwithstanding the foregoing, if
any such Put Rights or Purchase Rights shall terminate without being exercised,
the Option Price and number of shares subject to the Option shall be
appropriately readjusted to reflect the Option Price and number of shares
subject to the Option which would have been in effect if such unexercised
Rights had never existed.  Comparable adjustments shall be made in the event of
successive transactions of the character described above.

     If there is a merger of one or more corporations or entities with or into
the Company in which the Company is not the sole survivor or there is an
exchange, conversion or modification to the ownership of the then outstanding
shares of Common Stock of the Company, a consolidation of the Company and any
one or more corporations or entities, a statutory share or interest exchange in
which all of the Common Stock is acquired or any other similar business
combination with respect to the Company in which the Common Stock is acquired
by a third party, each optionee, at no additional cost, shall be entitled to
receive, upon any exercise of his Option, in lieu of the number of shares as to
which the Option shall then represent the right to purchase, the number and
class of shares of stock or other securities, assets or other property,
including cash, to which the optionee would have been entitled to receive or
continue to hold pursuant to the terms of the agreement of merger,
consolidation, share or interest exchange or other similar transaction if at
the time of such merger, consolidation, share or interest exchange such
optionee had been a holder of a number of shares of Common Stock equal to the
number of shares as to which the Option shall then represent the right to
purchase.  Comparable rights shall accrue to each optionee in the event of
successive mergers, consolidations, share or interest exchanges or other
transactions of the character described above.

     If a corporate transaction described in Section 424(a) of the Code which
involves the Company is to take place and there is to be no surviving
corporation or entity while an Option remains in whole or in part unexercised,
it may be cancelled by the Board of Directors as of the effective date of any
such corporate transaction but before the date each optionee shall be provided
with a notice of such cancellation and each optionee shall have the right to
exercise such Option in full (without regard to any limitations on exercise set
forth in or imposed by the option agreement pursuant to which such Option was
granted as contemplated by Paragraph 9 of the Plan) to the extent it is then
still unexercised during a 30-day period preceding the effective date of such
corporate transaction.

     In the event (i) the Company were to distribute to its stockholders or
otherwise divest of a majority of the stock of a subsidiary corporation that is
the principal employer of the Employee and (ii) following such distribution or
divestment the stock of the subsidiary corporation or any parent corporation of
such subsidiary corporation is listed or authorized for listing on a national
securities exchange or authorized for quotation on the NASDAQ national market
(or successor market), the Board of Directors may, but shall not be required
to, adjust the terms of the Option to provide that such Option shall only
represent a right to purchase shares in such subsidiary corporation or parent
corporation and the number of shares and exercise price will be appropriately
adjusted so as to


                                      -6-
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maintain the economic value of the Option.  This adjustment would be in lieu of
any adjustment that might otherwise be required under this Section 4.5 for that
transaction.

     Except as hereinbefore expressly provided, the issue by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, for cash or property, or for labor or services either upon direct
sale or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock
then subject to outstanding Options.


                                   ARTICLE V.

                                    OPTIONS

     5.1 TYPE OF OPTION.  All Options granted under this Plan shall constitute
Nonqualified Options.

     5.2 OPTION PRICE.  The price at which shares of Stock may be purchased
under a Nonqualified Option shall not be less than the aggregate par value of
the shares of Stock on the date the Option is granted.  The Committee in its
discretion may provide that the price at which shares of Stock may be purchased
under a Nonqualified Option may be more or less than 100% of Fair Market Value
on the date of grant.

     5.3 DURATION OF OPTIONS.  Unless otherwise provided in an Option
Agreement, no Option shall be exercisable after one day less than 10 years from
the date the Option becomes first exercisable.

     5.4 AMOUNT EXERCISABLE.  Each Option may be exercised by an Employee from
time to time, in whole or in part, after three years from the date of grant, in
the manner and subject to the conditions the Committee, in its sole discretion,
may provide in the Option Agreement, as long as the Option is valid and
outstanding under the terms of this Plan.  Unless otherwise provided in an
Option Agreement, (a) in the case of death or disability within three years of
the date of grant, while the optionee is an Employee, each Option shall become
immediately exercisable as described in Section 5.6, and (b) in the case of
retirement by an Employee within three years of the date of grant, each Option
shall become exercisable as described in Section 5.6.

     5.5 EXERCISE OF OPTIONS. An optionee may exercise such optionee's Option
by delivering to the Company a written notice stating (i) that such optionee
wishes to exercise such Option on the date such notice is so delivered, (ii)
the number of shares of stock with respect to which such Option is to be
exercised, (iii) the address to which the certificate representing such shares
of stock should be mailed, and (iv) the social security number of such
optionee.  In order to be effective, such written notice shall be accompanied
by (i) payment of the Option price of such shares of stock and (ii) payment of
an amount of money necessary to satisfy any withholding tax liability that may
result from the exercise of such Option.  Each such payment shall be made by
cashier's check drawn on a national banking association and payable to the
order of the Company in United States dollars.


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     Unless otherwise provided in an Option Agreement, if, at the time of
receipt by the Company of such written notice, (i) the Company has unrestricted
surplus in an amount not less than the Option price of such shares of stock,
(ii) all accrued cumulative preferential dividends and other current
preferential dividends on all outstanding shares of preferred stock of the
Company have been fully paid, (iii) the acquisition by the Company of its own
shares of stock for the purpose of enabling such optionee to exercise such
Option is otherwise permitted by applicable law and without any vote or consent
of any stockholder of the Company, and (iv) there shall have been adopted, and
there shall be in full force and effect, a resolution of the Board of Directors
of the Company authorizing the acquisition by the Company of its own shares of
stock for such purpose, then such optionee may deliver to the Company, in
payment of the Option price of the shares of stock with respect to which such
Option is exercised, (x) certificates registered in the name of such optionee
that represent a number of shares of stock legally and beneficially owned by
such optionee (free of all liens, claims and encumbrances of every kind) and
having a fair market value on the date of receipt by the Company of such
written notice that is not greater than the Option price of the shares of stock
with respect to which such Option is to be exercised, such certificates to be
accompanied by stock powers duly endorsed in blank by the record holder of the
shares of stock represented by such certificates, with the signature of such
record holder guaranteed by a national banking association (or in lieu of such
certificates, other arrangements for the transfer of such shares to the Company
which are satisfactory to the Company), and (y) if the Option price of the
shares of stock with respect to which such Option is to be exercised exceeds
such fair market value, a cashier's check drawn on a national banking
association and payable to the order of the Company in an amount, in United
States dollars, equal to the amount of such excess plus the amount of money
necessary to satisfy any withholding tax liability that may result from the
exercise of such Option.  Notwithstanding the provisions of the immediately
preceding sentence, the Committee, in its sole discretion, may refuse to accept
shares of stock in payment of the Option price of the shares of stock with
respect to which such Option is to be exercised and, in that event, any
certificates representing shares of stock that were received by the Company
with such written notice shall be returned to such optionee, together with
notice by the Company to such optionee of the refusal of the Committee to
accept such shares of stock.  Unless otherwise provided in the Option
Agreement, the Company, upon approval of the Committee and in its sole
discretion, upon the request of the optionee, may retain shares of Common Stock
which would otherwise be issued upon exercise of an Option to satisfy any
withholding tax liability that may result from the exercise of such Option,
which shares shall be valued for such purpose at their then Fair Market Value.
If, at the expiration of seven business days after the delivery to such
optionee of such written notice from the Company, such optionee shall not have
delivered to the Company a cashier's check drawn on a national banking
association and payable to the order of the Company in an amount, in United
States dollars, equal to the Option Price of the shares of stock with respect
to which such Option is to be exercised, such written notice from the optionee
to the Company shall be ineffective to exercise such Option.

     As promptly as practicable after the receipt by the Company of (i) such
written notice from the optionee, (ii) payment, in the form required by the
foregoing provisions of this Paragraph 5.5, of the Option Price of the shares
of stock with respect to which such Option is to be exercised, and (iii)
payment, in the form required by the foregoing provisions of this Section, of
an amount of money necessary to satisfy any withholding tax liability that may
result from the exercise of such Option,
a certificate representing the number of shares of stock with respect to which
such Option


                                      -8-
<PAGE>   12


has been so exercised, reduced, to the extent applicable by the number of
shares retained by the Company as provided above to pay any required
withholding tax, such certificate to be registered in the name of such
optionee, provided that such delivery shall be considered to have been made
when such certificate shall have been mailed, postage prepaid, to such optionee
at the address specified for such purpose in such written notice from the
optionee to the Company.

     5.6 EXERCISE FOLLOWING TERMINATION OF EMPLOYMENT.  Unless it is expressly
provided otherwise in the Option Agreement or other written agreement with the
Employee that provides otherwise, Options shall terminate as follows:

     SEVERANCE OF EMPLOYMENT.  If the Employee severs employment from the
Company and all Affiliates prior to three years from the date such Options were
granted, for any reason, with or without cause, other than for death,
retirement under the then established rules of the Company, or severance for
disability, all such Options shall terminate and be immediately forfeited, and
not be exercisable.  If the Employee severs employment from the Company and all
Affiliates for any reason, with or without cause, other than for death,
retirement under the then established rules of the Company, or severance for
disability on or after three years from the date such Options were granted, the
Options shall continue in effect until the date such Options are otherwise due
to expire in accordance with Section 5.3, unless it is expressly provided
otherwise in the Option Agreement or other written agreement with the Employee
that provides otherwise.  Whether authorized leave of absence or absence on
military or government service shall constitute severance of the employment of
the Employee shall be determined by the Committee at that time.

     In determining the employment relationship between the Company and the
Employee, employment by any Affiliate shall be considered employment by the
Company, as shall employment by a corporation issuing or assuming a stock
option in a transaction to which Section 424(a) of the Code applies, or by a
parent corporation or subsidiary corporation of the corporation issuing or
assuming a stock option (and for this purpose, the phrase "corporation issuing
or assuming a stock option" shall be substituted for the word "Company" in the
definitions of parent corporation and subsidiary corporation in Section 2.1,
and the parent-subsidiary relationship shall be determined at the time of the
corporate action described in Section 424(a) of the Code).

     DEATH.  If the Employee dies prior to three years from the date such
Options were granted, the Options shall continue in effect until 10 years
following the date of the Employee's death, unless it is expressly provided
otherwise in the Option Agreement. If the Employee dies on or after three years
from the date such Options were granted, the Option shall continue in effect
until the date the Option is otherwise due to expire in accordance with Section
5.3, unless it is expressly provided otherwise in the Option Agreement.  After
the death of the Employee, the Employee's executors, administrators or any
persons to whom his Option may be transferred by will or by the laws of descent
and distribution shall have the right, at any time prior to the Option's
expiration to exercise it.

     RETIREMENT.  If the Employee shall be retired in good standing from the
employ of the Company under the then established rules of the Company, prior to
three years from the date such Options were granted, the Employee shall vest in
the number of Options determined by multiplying the number of Options granted
to the Employee by a fraction, the numerator of which is the


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<PAGE>   13



Employee's total whole years of service since the Options were granted and the
denominator of which is three.  With respect to these vested Options, the
Options shall be exercisable until 10 years following the date of the
Employee's retirement in accordance with this Section 5.6, unless it is
expressly provided otherwise in the Option Agreement.  If the Employee shall be
retired in good standing from the employ of the Company under the then
established rules of the Company on or after three years from the date such
Options were granted, such Options shall continue until the date the Options
are otherwise due to expire in accordance with Section 5.3, unless it is
expressly provided otherwise in the Option Agreement.

     DISABILITY.  If the Employee shall be severed from the employ of the
Company for disability prior to three years from the date such Options were
granted, the Options shall be immediately exercisable and continue in effect
until 10 years following the date he severed from the employ of the Company for
disability, unless it is expressly provided otherwise in the Option Agreement.
If the Employee shall be severed from the employ of the Company for disability
on or after three years from the date such Options were granted, the Options
shall continue in effect until the date the Options are otherwise due to expire
in accordance with Section 5.3, unless it is expressly provided otherwise in
the Option Agreement.

     5.7 SUBSTITUTION OPTIONS. Options may be granted under this Plan from time
to time in substitution for stock options held by employees of other
corporations who are about to become employees of the Company, or whose
employer is about to become a parent or subsidiary corporation of the Company,
conditioned upon the employee becoming an employee of the Company or a parent
or subsidiary corporation of the Company, as a result of the merger or
consolidation of the Company with another corporation, or the acquisition by
the Company of substantially all the assets of another corporation, or the
acquisition by the Company of at least 50% of the issued and outstanding stock
of another corporation as the result of which it becomes a subsidiary of the
Company.  The terms and conditions of the substitute Options so granted may
vary from the terms and conditions set forth in this Plan to such extent as the
Board of Directors of the Company at the time of grant may deem appropriate to
conform, in whole or in part, to the provisions of the stock options in
substitution for which they are granted.

     5.8 NO RIGHTS AS STOCKHOLDER.  No Employee shall have any rights as a
stockholder with respect to Stock covered by his Option until the date a stock
certificate is issued for the Stock.

                                  ARTICLE VI.

                                 ADMINISTRATION

     This Plan shall be administered by the Committee.  All questions of
interpretation and application of this Plan and Options shall be subject to the
determination of the Committee.  A majority of the members of the Committee
shall constitute a quorum.  All determinations of the Committee shall be made
by a majority of its members.  Any decision or determination reduced to writing
and signed by a majority of the members shall be as effective as if it had been
made by a majority vote at a meeting properly called and held.  In carrying out
its authority under this Plan, subject to the express terms of any outstanding
Option or other agreement with an Employee, the


                                      -10-
<PAGE>   14



Committee shall have full and final authority and discretion, including but not
limited to the following rights, powers and authorities, to:

                1. determine the Employees to whom and the time or
           times at which Options will be made,

                2. determine the number of shares and the purchase
           price of Stock covered in each Option, subject to the
           terms of this Plan,

                3. determine the terms, provisions and conditions
           of each Option, which need not be identical,

                4. accelerate the time at which any outstanding
           Option may be exercise,

                5. define the effect, if any, on an Option of the
           death, disability, retirement, or termination of
           employment of the Employee,

                6. prescribe, amend and rescind rules and
           regulations relating to administration of this Plan, and

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

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

                                  ARTICLE VII.

                        AMENDMENT OR TERMINATION OF PLAN

     The Board of Directors of the Company may amend, terminate or suspend this
Plan at any time, in its sole and absolute discretion subject to the rights of
holders of outstanding Options at the time of such amendment, termination or
suspension..


                                 ARTICLE VIII.

                                 MISCELLANEOUS

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



                                      -11-
<PAGE>   15


     8.2 NO EMPLOYMENT OBLIGATION.  The granting of any Option shall not
constitute an employment contract, express or implied, nor impose upon the
Company or any Affiliate any obligation to employ or continue to employ any
Employee.  The right of the Company or any Affiliate to terminate the
employment of any person shall not be diminished or affected by reason of the
fact that an Option has been granted to him.

     The decision of the Committee as to the cause of the Employee's discharge,
the damage done to the Company or an Affiliate, and the extent of the
Employee's competitive activity shall be final.  No decision of the Committee,
however, shall affect the finality of the discharge of the Employee by the
Company or an Affiliate in any manner.

     8.3 TAX WITHHOLDING.  The Company or any Affiliate shall be entitled to
deduct from other compensation payable to each Employee any sums required by
federal, state, or local tax law to be withheld with respect to the grant or
exercise of an Option.  In the alternative, the Company may require the
Employee (or other person exercising the Option) to pay the sum directly to the
employer corporation.  If the Employee (or other person exercising the Option)
is required to pay the sum directly, payment in cash or by check of such sums
for taxes shall be delivered within 10 days after the date of exercise .  The
Company shall have no obligation upon exercise of any Option until payment has
been received, unless withholding (or offset against a cash payment) as of or
prior to the date of exercise is sufficient to cover all sums due with respect
to that exercise.  The Company and its Affiliates shall not be obligated to
advise an Employee of the existence of the tax or the amount which the employer
corporation will be required to withhold.  The Company may also allow for the
retention of shares of Stock issuable upon the exercise of Options to satisfy
such withholding.

     8.4 WRITTEN AGREEMENT.  Each Option shall be embodied in a written Option
Agreement which shall be subject to the terms and conditions of this Plan and
shall be signed by the Employee and the Company.  The Option Agreement may
contain any other provisions that the Committee in its discretion shall deem
advisable.

     8.5 INDEMNIFICATION OF THE COMMITTEE AND THE BOARD OF DIRECTORS.  With
respect to administration of this Plan, the Company shall indemnify each
present and future member of the Committee and the Board of Directors against,
and each member of the Committee and the Board of Directors shall be entitled
without further act on his part to indemnity from the Company for, all expenses
(including attorney's fees, the amount of judgments and the amount of approved
settlements made with a view to the curtailment of costs of litigation, other
than amounts paid to the Company itself) reasonably incurred by him in
connection with or arising out of any action, suit, or proceeding in which he
may be involved by reason of his being or having been a member of the Committee
and/or the Board of Directors, whether or not he continues to be a member of
the Committee and/or the Board of Directors at the time of incurring the
expenses--including, without limitation, matters as to which he shall be
finally adjudged in any action, suit or proceeding to have been found to have
been negligent in the performance of his duty as a member of the Committee of
the Board of Directors.  However, this indemnity shall not include any expenses
incurred by any member of the Committee and/or the Board of Directors in
respect of matters as to which he shall be finally adjudged in any action, suit
or proceeding to have been guilty of gross negligence or willful misconduct in
the performance of his duty as a member of the Committee or the Board of
Directors.  In addition, no right of indemnification under this Plan shall be
available to or enforceable


                                      -12-

<PAGE>   16



by any member of the Committee and the Board of Directors unless, within 60
days after institution of any action, suit or proceeding, he shall have offered
the Company, in writing, the opportunity to handle and defend same at its own
expense.  This right of indemnification shall inure to the benefit of the
heirs, executors or administrators of each member of the Committee and the
Board of Directors and shall be in addition to all other rights to which a
member of the Committee and the Board of Directors may be entitled as a matter
of law, contract, or otherwise.

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

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

     8.8 OTHER COMPENSATION PLANS.  The adoption of this Plan shall not affect
any other stock option, incentive or other compensation or benefit plans or
arrangements, including any employment, change of control or severance
agreements, in effect with or for the Company or any Affiliate, nor shall this
Plan preclude the Company from establishing any other forms of incentive or
other compensation for employees of the Company or any Affiliate.

     8.9 OTHER OPTIONS.  The grant of an Option shall not confer upon the
Employee the right to receive any future or other Options under this Plan,
whether or not Options may be granted to similarly situated Employees, or the
right to receive future Options upon the same terms or conditions as previously
granted.

     8.10 GOVERNING LAW.  The provisions of this Plan shall be construed,
administered, and governed under the laws of the State of Delaware.



                                      -13-
<PAGE>   17



                         WEATHERFORD INTERNATIONAL, INC.
                         1998 EMPLOYEE STOCK OPTION PLAN

                             STOCK OPTION AGREEMENT


         Under the terms and conditions of the Weatherford International, Inc.
1998 Employee Stock Option Plan (the "Plan"), a copy of which is attached hereto
and incorporated in this Agreement by reference, Weatherford International, Inc.
(the "Company") grants to ______ (the "Optionee") the option to purchase
_________ shares of the Company's Common Stock, $1.00 par value, at the price of
$ per share, subject to adjustment as provided in the Plan (the "Option") as
follows:

         1. Grant. (a) The Company hereby grants to the Optionee the Option
effective as of September 8, 1998 (the "Date of Grant"). The Company and the
Optionee agree that the Option shall be subject to the terms of this Agreement
and the Plan. The Company and Optionee further agree that this Agreement,
together with the Plan and the Employment Agreement with the Optionee dated
__________, 1998 (the Employment Agreement"), sets forth the complete terms of
the Option as in effect on the date hereof. To the extent the terms of this
Agreement and the Option vary with the terms of the Plan, the terms of this
Agreement and the Option shall prevail and this Agreement shall be deemed an
amendment to the Plan to the extent necessary to permit the grant of the Option.

         (b) Subject to the terms and conditions of this Agreement and the Plan,
the Option provides the Optionee with the option to purchase _____ shares of
Common Stock at a price of $____________ per share (the "Option Price").

         (c) The Option is subject to the terms and provisions of the Plan,
which are hereby incorporated herein by reference. The Option shall also be
subject to the terms of the Employment Agreement; provided that the Optionee
agrees that as of the date of this Agreement there does not exist Good Reason
(as defined in the Employment Agreement) for the Optionee to terminate the
Optionee's employment.

         (d) The Option is considered to be a non-statutory option and is not
intended to be an incentive stock option within the meaning of Section 422(b) of
the Internal Revenue Code of 1986, as amended (the "Code").

         (e) Subject to earlier vesting in the event of a "Change in Control" as
provided in Section 1(f) hereof, or in the event of termination of employment
(i) by the Optionee for Good Reason (as defined in the Employment Agreement),
(ii) by the Company for any reason other than Cause (as defined in the
Employment Agreement) or (iii) due to death, disability or retirement within
three years from the date of the grant of the Option as provided for in Section
6 hereof, the Option shall be exercisable following three years from the date of
grant of the Option. No Option however, shall be exercisable after one day less
than 10 years from the date the option becomes first exercisable.

         (f) Notwithstanding the provisions of Section 1(e) hereof, the Option
shall be exercisable with respect to all of the shares subject to the Option
upon the occurrence of a Change in Control 


<PAGE>   18




(as defined herein). For purposes of this Agreement, a Change in Control shall
mean the occurrence of one or more of the following events: (i) any "person",
including a "group", as those terms are used in Section 13(d)(3) of the
Securities Exchange Act of 1934, other than an affiliate of the Company as of
the Date of Grant, becomes the beneficial owner, directly or indirectly, of
securities of the Company representing 30% or more of the combined voting power
of the Company's then outstanding voting securities; (ii) the Company is merged
or consolidated with or into another corporation and immediately after giving
effect to the merger or consolidation either (A) less than 65% of the
outstanding voting securities of the surviving or resulting entity are then
beneficially owned in the aggregate by (x) the stockholders of the Company
immediately prior to such merger or consolidation or (y) if a record date has
been set to determine the stockholders of the Company entitled to vote on such
merger or consolidation, the stockholders of the Company as of such record date,
or (B) the Board of Directors, or similar governing body, of the surviving or
resulting entity does not have as a majority of its members the persons
specified in clause (iii)(A) and (B) below; (iii) if at any time the following
do not constitute a majority of the Board of Directors of the Company (or any
successor entity referred to in clause (ii) above): (A) persons who are
directors of the Company on the Date of Grant and (B) persons who, prior to
their election as a director of the Company (or successor entity if applicable),
were nominated, recommended or endorsed by a formal resolution of the Board of
Directors of the Company; (iv) persons who are directors of the Company as of
the beginning of any calendar year cease to constitute a majority of the members
of the Board of Directors at any time during that calendar year; or (v) the
Company transfers all or substantially all of its assets as contemplated by
Delaware corporate law on a consolidated basis to another corporation or entity
which is a less than a 50% owned subsidiary of the Company.

         2. Changes in The Company's Capital Structure. (a) The existence of the
Option shall not affect in any way the right or power of the Company or its
stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company's capital structure of its
business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common
Stock or the rights thereof, or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

         (b) The number of shares of Common Stock subject to the Option, the
Option Price and the securities issuable and other property payable upon
exercise of the Option shall be subject to adjustment as provided in the Plan.

         3. Exercise of Options. The Option may be exercised from time to time
as to the total number of shares that may then be issuable upon the exercise
thereof or any portion thereof in the manner and subject to the limitations
provided for in the Plan and in Section 1 hereof.

         4. Assignment. The Option may not be transferred or assigned in any
manner by the Optionee except by will or the laws of descent and distribution or
pursuant to a qualified domestic order, and shall be exercisable during the
Employee's lifetime only by the Employee or an assignee pursuant to a qualified
domestic order.




                                      -2-
<PAGE>   19





         5. Requirement of Law. If required at any time by the Committee, the
Option may not be exercised until the Optionee has delivered an investment
letter to the Company. In addition, specifically in connection with the
Securities Act of 1933 (as now in effect or hereafter amended), upon exercise of
the Option, the Company shall not be required to issue the underlying shares
unless the Committee has received evidence satisfactory to it to the effect that
the Optionee will not transfer such shares except pursuant to a registration
statement in effect under such Act or unless an opinion of counsel satisfactory
to the Committee has been received by the Company to the effect that such
registration is not required. Any determination in this connection by the
Committee shall be final, binding and conclusive. In the event the shares
issuable on exercise of the Option are not registered under the Securities Act
of 1933, the Company may imprint on the certificate for such shares the
following legend or any other legend which counsel for the Company considers
necessary or advisable to comply with Securities Act of 1933:

         The shares of stock represented by this certificate have not been
         registered under the Securities Act of 1933 or under the securities
         laws of any state and may not be sold or transferred except upon such
         registration or upon receipt by the Corporation of an opinion of
         counsel satisfactory to the Corporation, in form and substance
         satisfactory to the Corporation, that registration is not required for
         such sale or transfer.

         The Company may, but shall in no event be obligated to, register any
securities covered hereby pursuant to the Securities Act of 1933. The Company
shall not be obligated to take any other affirmative action in order to cause
the exercise of the Option or the issuance of shares of Common Stock pursuant
thereto to comply with any law or regulation of any governmental authority.

         6. Termination. The Option, to the extent it shall not previously have
been exercised, shall terminate as follows:

         (a) If the employment of the Optionee with the Company and its
Affiliates is terminated (i) by the Company for any reason other than Cause (as
defined in the Employment Agreement) or (ii) by the Optionee for Good Reason (as
defined in the Employment Agreement), the Option shall continue in effect until
one day less than ten years following the date of the Optionee's date of
termination of employment. If the Optionee elects to terminate the Optionee's
employment relationship with the Company and its Affiliates prior to three years
for any reason other than Good Reason, death, retirement under the then
established rules of the Company or disability, such Options shall terminate and
be immediately forfeited and not be exercisable. In addition, if the employment
of the Optionee is terminated by the Company for Cause prior to three years from
the date such Options were granted, all such Options shall terminate and be
immediately forfeited and not be exercisable.

         (b) DEATH. If the Optionee dies prior to three years from the date such
Options were granted, the Options shall continue in effect until one day less
than 10 years following the date of the Optionee's death. If the Optionee dies
on or after three years from the date such Options were granted, the Option
shall continue in effect until one day less than 10 years after the date the
Option became first exercisable. After the death of the Optionee, the Optionee's
executors, administrators or any persons to whom his Option may be transferred
by will or by the laws of descent and distribution shall have the right, at any
time prior to the Option's expiration to exercise it.



                                      -3-
<PAGE>   20





         (c) RETIREMENT. If the Optionee shall be retired in good standing from
the employ of the Company under the then established rules of the Company, prior
to three years from the date such Options were granted, the Optionee shall vest
in the number of Options determined by multiplying the number of Options granted
to the Optionee by a fraction, the numerator of which is the Optionee's total
whole years of service since the Options were granted and the denominator of
which is three. With respect to these vested Options, the Options shall be
exercisable until one day less than 10 years following the date of the
Optionee's retirement. If the Optionee shall be retired in good standing from
the employ of the Company under the then established rules of the Company on or
after three years from the date such Options were granted, such Options shall
continue until one day less than 10 years after the date the Option became first
exercisable.

         (d) DISABILITY. If the Optionee shall be severed from the employ of the
Company for disability prior to three years from the date such Options were
granted, the Options shall be immediately be exercisable and continue in effect
until one day less than 10 years following the date he severed from the employ
of the Company for disability. If the Optionee shall be severed from the employ
of the Company for disability on or after three years from the date such Options
were granted, the Options shall continue in effect until one day less than ten
years after the date the Option became first exercisable.

         7. Amendment. This Agreement may not be changed, amended or modified
except by an agreement in writing signed on behalf of each of the parties
hereto.

         8. No Rights as a Stockholder. The Optionee shall not have any rights
as a stockholder with respect to any shares of Common Stock issuable upon the
exercise of the Option until the date of issuance of the stock certificate or
certificates representing such shares following the Optionee's exercise of the
Option pursuant to its terms and conditions and payment for such shares. Except
as otherwise provided in the Plan, no adjustment shall be made for dividends or
other distributions made with respect to the Common Stock the record date for
the payment of which is prior to the date of issuance of the stock certificate
or certificates representing such shares following the Employee's exercise of
the Option.

         9. Governing Law. The validity, construction and performance of this
Agreement shall be governed by the laws of the State of Delaware. Any invalidity
of any provision of this Agreement shall not affect the validity of any other
provision.

         10. Notices. All notices, demands, requests or other communications
hereunder shall be in writing and shall be deemed to have been duly made or
given if mailed by registered or certified mail, return receipt requested. Any
such notice mailed to the Company shall be addressed to its principal executive
office at 5 Post Oak Park, Suite 1760, Houston, Texas 77027-3415, and any notice
mailed to the Optionee shall be addressed to the Employees's residence address
as it appears on the books and records of the Company or to such other address
as either party may hereafter designate in writing to the other.

         11. Employment Obligation. The granting of the Option by the Company to
the Optionee shall not impose upon the Company any obligation to employ or
continue to employ the Optionee; and the right of the Company to terminate the
employment of the Optionee with the Company shall



                                      -4-
<PAGE>   21




not be diminished or affected by reason of the grant of the Option to the
Optionee pursuant to this Agreement.

         12. Binding Effect. This Agreement shall, except as otherwise provided
to the contrary in this Agreement or in the Plan, inure to the benefit of and
bind the successors and assigns of the Company. This Agreement shall, except as
otherwise provided to the contrary in this Agreement, inure to the benefit of
and bind the heirs, executors, administrators and legal representatives of the
Optionee.


         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
as of the day and year first above mentioned.




                                     WEATHERFORD INTERNATIONAL, INC.



                                     By:
                                        ------------------------------------
                                      Name:
                                            --------------------------------
                                      Title:
                                            --------------------------------


                                     ---------------------------------------
                                     Optionee




   





                                       -5-