Document:

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                                                                    EXHIBIT 10.1

                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS AGREEMENT is made and entered into this 8th day of May, 2000
between PetroQuest Energy, Inc., a Delaware corporation having its principal
executive office at 400 E. Kaliste Saloom Road, Suite 3000, Lafayette, Louisiana
70508 (hereinafter referred to as the "Company"), and Michael O. Aldridge
(hereinafter referred to as the "Employee").

                                   WITNESSETH:

         WHEREAS, the Company desires to employ the Employee in an executive
capacity and the Employee desires to enter the Company's employ.

         NOW, THEREFORE, for and in consideration of the mutual promises,
covenants and obligations contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company and the Employee hereby agree as follows:

1.       Certain Definitions. As used in this Agreement, the following terms
have the meanings prescribed below:

         Affiliate is used in this Agreement to define a relationship to a
person or entity and means a person or entity who, directly or indirectly
through one or more intermediaries, controls, is controlled by, or is under
common control with, such person or entity.

         Annual Bonus shall have the meaning assigned thereto in Section 4.2
hereof.

         Base Salary shall have the meaning assigned thereto in Section 4.1
hereof.

         Beneficial Owner shall have the meaning assigned thereto in Rule
13(d)-3 under the Exchange Act; provided, however, and without limitation, that
any individual, corporation, partnership, group, association or other person or
entity that has the right to acquire any Voting Stock at any time in the future,
whether such right is (a) contingent or absolute or (b) exercisable presently or
at any time in the future, pursuant to any agreement or understanding or upon
the exercise or conversion of rights, options or warrants, or otherwise, shall
be the Beneficial Owner of such Voting Stock.

         Cause shall have the meaning assigned thereto in Section 5.3 hereof.

         Common Stock means the Company's common stock, par value $.001 per
share.

         Confidential Information shall have the meaning assigned thereto in
Section 8.2 hereof.

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         Date of Termination means the earliest to occur of (i) the date of the
Employee's death, (ii) the date on which the Employee terminates this Agreement
for any reason or (iii) the date of receipt of the Notice of Termination, or
such later date as may be prescribed in the Notice of Termination in accordance
with Section 5.5 hereof.

         Disability means an illness or other disability which prevents the
Employee from discharging his responsibilities under this Agreement for a period
of 180 consecutive calendar days, or an aggregate of 180 calendar days in any
calendar year, during the Employment Period, all as determined in good faith by
the Board of Directors of the Company (or a committee thereof).

         Effective Date means the date of execution hereof.

         Employee means Michael O. Aldridge, whose business address is 400 E.
Kaliste Saloom Road, Suite 3000, Lafayette, Louisiana 70508.

         Exchange Act means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated by the Securities and Exchange Commission
thereunder, all as in effect from time to time during the Employment Period.

         Company means PetroQuest Energy, Inc., a Delaware corporation, the
principal executive office of which is located at 400 E. Kaliste Saloom Road,
Suite 3000, Lafayette, Louisiana 70508.

         Employment Period shall have the meaning assigned thereto in Section 3
hereof.

         Initial Term shall have the meaning assigned thereto in Section 3
hereof.

         Notice of Termination shall have the meaning assigned thereto in
Section 5.5 hereof.

         Termination Agreement means the Termination Agreement dated as of May
8, 2000 between the Company and the Employee.

         Unexpired Term shall have the meaning assigned thereto in Section
6.3(c) hereof.

         Voting Stock means all outstanding shares of capital stock of the
Company entitled to vote generally in an election of directors; provided,
however, that if the Company has shares of Voting Stock entitled to more or less
than one vote per share, each reference to a proportion of the issued and
outstanding shares of Voting Stock shall be deemed to refer to the proportion of
the aggregate votes entitled to be cast by the issued and outstanding shares of
Voting Stock.

         Without Cause shall have the meaning assigned thereto in Section 5.4
hereof.

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2.       General Duties of Company and Employee.

         2.1 The Company agrees to employ the Employee, and the Employee agrees
to accept employment by the Company and to serve the Company as Senior Vice
President, Chief Financial Officer and Secretary, and shall also serve as a
director of the Company. The authority, duties and responsibilities of the
Employee shall be consistent with those of executive officers in a public
company with a similar title, and such other or additional duties as may from
time to time be assigned to the Employee by the Board of Directors (or a
committee thereof) and agreed to by the Employee. While employed hereunder, the
Employee shall devote full time and attention during normal business hours to
the affairs of the Company and use his best efforts to perform faithfully and
efficiently his duties and responsibilities. The Employee may (i) serve on
corporate, civic or charitable boards or committees, (ii) deliver lectures,
fulfill speaking engagements or teach at educational institutions and (iii)
manage personal investments, so long as such activities do not significantly
interfere with the performance of the Employee's duties and responsibilities.

         2.2 The Employee agrees and acknowledges that he owes a fiduciary duty
of loyalty, fidelity and allegiance to act at all times in the best interests of
the Company and to do no act and to make no statement, oral or written, which
would injure Company's business, its interests or its reputation.

         2.3 The Employee agrees to comply at all times during the Employment
Period with all applicable policies, rules and regulations of the Company,
including, without limitation, the Company's Code of Ethics and the Company's
policy regarding trading in the Common Stock, as each is in effect from time to
time during the Employment Period.

3.       Term. Unless sooner terminated pursuant to other provisions hereof, the
Employee's period of employment under this Agreement shall be a period of three
years beginning on the Effective Date (the "Initial Term"). After the expiration
of the Initial Term, the Employee's period of employment under this Agreement
shall be automatically renewed for successive one-year terms on each anniversary
of the Effective Date (the Initial Term and any and all renewals thereof are
referred to herein collectively as the "Employment Period").

4.       Compensation and Benefits.

         4.1 Base Salary. As compensation for services to the Company, the
Company shall pay to the Employee until the Date of Termination an annual base
salary of $180,000 (the "Base Salary"). The Board of Directors (or a committee
thereof), in its discretion, may increase the Base Salary based upon relevant
circumstances. The Base Salary shall be payable in equal semi-monthly
installments or in accordance with the Company's established policy, subject
only to such payroll and withholding deductions as may be required by law and
other deductions applied generally to employees of the Company for insurance and
other employee benefit plans.

         4.2 Bonus. In addition to the Base Salary, the Employee may be awarded,
for each fiscal year until the Date of Termination, an annual bonus (either
pursuant to a bonus or incentive plan or program of the Company or otherwise) in
an amount to be determined by the Board of Directors (or

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a committee thereof), in its sole discretion (the "Annual Bonus"). Each such
Annual Bonus shall be payable at a time to be determined by the Board of
Directors (or a committee thereof) in its sole discretion.

         4.3 Vacation. Until the Date of Termination, the Employee shall be
entitled to five weeks paid vacation during each one year period commencing on
the Effective Date (the "Vacation Time").

         4.4 Incentive, Savings and Retirement Plans. Until the Date of
Termination, the Employee shall be eligible to participate in and shall receive
all benefits under all executive incentive, savings and retirement plans
(including 401(k) plans) and programs currently maintained or hereinafter
established by the Company for the benefit of its executive officers and/or
employees.

         4.5 Welfare Benefit Plan. Until the Date of Termination, 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 each welfare benefit plan of
the Company currently maintained or hereinafter established by the Company for
the benefit of its employees. Such welfare benefit plans may include, without
limitation, medical, dental, disability, group life, accidental death and travel
accident insurance plans and programs.

         4.6 Reimbursement of Expenses. The Employee may from time to time until
the Date of Termination incur various business expenses customarily incurred by
persons holding positions of like responsibility, including, without limitation,
travel, entertainment and similar expenses incurred for the benefit of the
Company, and will receive a Company credit card for use for such expenses.
Subject to the Company's policy regarding the reimbursement of such expenses as
in effect from time to time during the Employment Period, which does not
necessarily allow reimbursement of all such expenses, the Company shall
reimburse the Employee for such expenses from time to time, at the Employee's
request, and the Employee shall account to the Company for all such expenses.

         4.7 Life Insurance. The Company shall provide to the Executive life
insurance on terms that are mutually agreeable to the Company and the Executive.

         4.8 Relocation. The Company and the Executive agree that, the Company
will provide to Executive reimbursement for reasonable out of pocket moving
expenses, not to exceed $50,000, incurred in connection with relocating from
Houston, Texas to Lafayette, Louisiana. The Company and the Executive further
agree that if the Executive is asked to relocate from Lafayette, Louisiana to
Houston, Texas, the Company will provide to Executive reimbursement for out of
pocket moving expenses incurred in connection with such move, and it will also
reimburse the Executive for any loss incurred by the Executive on the sale of
his personal residence in Lafayette, Louisiana, with such loss being calculated
on the basis of the difference between the Executive's actual costs less the net
sales price.

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5.       Termination.

         5.1 Death. This Agreement shall terminate automatically upon the death
of the Employee.

         5.2 Disability. The Company may terminate this Agreement, upon written
notice to the Employee delivered in accordance with Sections 5.5 and 12.1
hereof, upon the Disability of the Employee.

         5.3 Cause. The Company may terminate this Agreement, upon written
notice to the Employee delivered in accordance with Sections 5.5 and 12.1
hereof, for Cause. For purposes of this Agreement, "Cause" means (i) the
conviction of the Employee of a felony (which, through lapse of time or
otherwise, is not subject to appeal), (ii) the Employee's willful refusal,
without proper legal cause, to perform his duties and responsibilities as
contemplated in this Agreement or (iii) the Employee's willful engaging in
activities which would (A) constitute a breach of any term of this Agreement,
the Company's Code of Ethics, the Company's policies regarding trading in the
Common Stock or reimbursement of business expenses or any other applicable
policies, rules or regulations of the Company, or (B) result in a material
injury to the business, condition (financial or otherwise), results of
operations or prospects of the Company or its Affiliates (as determined in good
faith by the Board of Directors of the Company or a committee thereof).

         5.4 Without Cause. The Company may terminate this Agreement Without
Cause, upon written notice to the Employee delivered in accordance with Sections
5.5 and 12.1 hereof. For purposes of this Agreement, the Employee will be deemed
to have been terminated "Without Cause" if the Employee is terminated by the
Company for any reason other than Cause, Disability or death.

         5.5 Notice of Termination. Any termination of this Agreement by the
Company for Cause, Without Cause or as a result of the Employee's Disability
shall be communicated by Notice of Termination to the Employee given in
accordance with this 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) 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) specifies the
termination date, if such date is other than the date of receipt of such notice
(which termination date shall not be more than 15 days after the giving of such
notice).

6.       Obligations of Company upon Termination.

         6.1 Cause by Employee. If this Agreement shall be terminated either by
the Company for Cause or by the Employee for any reason, the Company shall pay
to the Employee, in a lump sum in cash within 30 days after the Date of
Termination, the aggregate of the Employee's Base Salary (as in effect on the
Date of Termination) through the Date of Termination, if not theretofore paid,
and, in the case of compensation previously deferred by the Employee, all
amounts of such compensation

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previously deferred and not yet paid by the Company. All other obligations of
the Company and rights of the Employee hereunder shall terminate effective as of
the Date of Termination.

         6.2 Death or Disability.

             (a) Subject to the provisions of this Section 6.2, if this
         Agreement is terminated as a result of the Employee's death or
         Disability, the Company shall pay to the Employee or his estate, in
         equal semi-monthly installments, the Employee's Base Salary (as in
         effect on the Date of Termination) for 12 months after such Date of
         Termination. The Company may purchase insurance to cover all or any
         part of the obligation contemplated in the foregoing sentence, and the
         Employee agrees to submit to a physical examination to facilitate the
         procurement of such insurance.

             (b) Whenever compensation is payable to the Employee hereunder
         during a period in which he is partially or totally disabled, and such
         Disability would (except for the provisions hereof) entitle the
         Employee to Disability income or salary continuation payments from the
         Company according to the terms of any plan or program presently
         maintained or hereafter established by the Company, the Disability
         income or salary continuation paid to the Employee pursuant to any such
         plan or program shall be considered a portion of the payment to be made
         to the Employee pursuant to this Section 6.2 and shall not be in
         addition hereto. If Disability income is payable directly to the
         Employee by an insurance company under the terms of an insurance policy
         paid for by the Company, the amounts paid to the Employee by such
         insurance company shall be considered a portion of the payment to be
         made to the Employee pursuant to this Section 6.2 and shall not be in
         addition hereto.

         6.3 Without Cause. If this Agreement shall be terminated by the Company
Without Cause:

             (a) the Company shall pay to the Employee, in a lump sum in cash
         within 30 days after the Date of Termination, the aggregate of the
         following amounts:

                 (1) if not theretofore paid, the Employee's Base Salary (as in
             effect on the Date of Termination) through the Date of Termination;
             and

                 (2) in the case of compensation previously deferred by the
             Employee, all amounts of such compensation previously deferred and
             not yet paid by the Company;

             (b) the Company shall, promptly upon submission by the Employee of
         supporting documentation, pay or reimburse to the Employee any costs
         and expenses (including moving and relocation expenses) paid or
         incurred by the Employee which would have been payable under Section
         4.5 of this Agreement if the Employee's employment had not terminated;
         and

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             (c) for the 12-month period commencing on the Date of Termination,
         the Company shall continue benefits to the Employee and/or the
         Employee's family at least equal to those which would have been
         provided to them under Section 4.4 if the Employee's employment had not
         been terminated; and

             (d) the Company shall pay to the Employee, in equal semi-monthly
         installments, the Employee's Base Salary (as in effect on the Date of
         Termination) for 12 months after the Date of Termination.

         6.4 Termination of Employment Following a Change in Control.
Notwithstanding the provisions of Section 6.3 hereof to the contrary, if the
Employee's employment by the Company is terminated by the Company in accordance
with the terms of Section 4 of the Termination Agreement and the Employee is
entitled to benefits provided in Section 5 of the Termination Agreement, the
Company shall pay to the Employee, in a lump sum in cash within 30 days after
the Date of Termination, the aggregate of the Employee's Base Salary (as in
effect on the Date of Termination) through the Date of Termination, if not
theretofore paid, and, in the case of compensation previously deferred by the
Employee, all amounts of such compensation previously deferred and not yet paid
by the Company. Except with respect to the obligations set for forth in the
Termination Agreement, notwithstanding any provisions herein to the contrary,
all other obligations of the Company and rights of the Employee hereunder shall
terminate effective as of the Date of Termination.

7.       Employee's Obligation to Avoid Conflicts of Interest.

         7.1 In keeping with the Employee's fiduciary duties to the Company, the
Employee agrees that he shall not knowingly become involved in a conflict of
interest with the Company, or upon discovery thereof, allow such a conflict to
continue. The Employee further agrees to disclose to the Company, promptly after
discovery, any facts or circumstances which might involve a conflict of interest
with the Company.

         7.2 The Company and the Employee recognize that it is impossible to
provide an exhaustive list of actions or interests which constitute a "conflict
of interest." Moreover, the Company and the Employee recognize that there are
many borderline situations. In some instances, full disclosure of facts by the
Employee to the Company is all that is necessary to enable the Company to
protect its interests. In others, if no improper motivation appears to exist and
the Company's interests have not suffered, prompt elimination of the outside
interest will suffice. In still others, it may be necessary for the Company to
terminate the employment relationship. The Company and the Employee agree that
the Company's determination as to whether or not a conflict of interest exists
shall be conclusive. The Company reserves the right to take such action as, in
its judgment, will end the conflict of interest.

         7.3 In this connection, it is agreed that any direct or indirect
interest in, connection with or benefit from any outside activities,
particularly commercial activities, which interest might in any way adversely
affect the Company or its Affiliates, involves a possible conflict of interest.

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Circumstances in which a conflict of interest on the part of the Employee would
or might arise, and which should be reported immediately to the Company,
include, but are not limited to, the following:

             (a) Ownership of a material interest in any lender, supplier,
         contractor, subcontractor, customer or other entity with which the
         Company does business.

             (b) Acting in any capacity, including director, officer, partner,
         consultant, employee, distributor, agent or the like, for any lender,
         supplier, contractor, subcontractor, customer or other entity with
         which the Company does business.

             (c) Acceptance, directly or indirectly, of payments, services or
         loans from a lender, supplier, contractor, subcontractor, customer or
         other entity with which the Company does business, including, without
         limitation, gifts, trips, entertainment or other favors of more than a
         nominal value, but excluding loans from publicly held insurance
         companies and commercial or savings banks at market rates of interest.

             (d) Use of information or facilities to which the Employee has
         access in a manner which will be detrimental to the Company's
         interests, such as use for the Employee's own benefit of know_how or
         information developed through the Company's business activities.

             (e) Disclosure or other misuse of information of any kind obtained
         through the Employee's connection with the Company.

             (f) Acquiring or trading in, directly or indirectly, oil and gas
         properties or interests for his own account or the account of his
         Affiliates without the prior written consent of the Board of Directors.

8.       Employee's Confidentiality Obligation.

         8.1 The Employee hereby acknowledges, understands and agrees that all
Confidential Information is the exclusive and confidential property of the
Company and its Affiliates which shall at all times be regarded, treated and
protected as such in accordance with this Section 8. The Employee acknowledges
that all such Confidential Information is in the nature of a trade secret.

         8.2 For purposes of this Agreement, "Confidential Information" means
information, which is used in the business of the Company or its Affiliates and
(i) is proprietary to, about or created by the Company or its Affiliates, (ii)
gives the Company or its Affiliates some competitive business advantage or the
opportunity of obtaining such advantage or the disclosure of which could be
detrimental to the interests of the Company or its Affiliates, (iii) is
designated as Confidential Information by the Company or its Affiliates, is
known by the Employee to be considered confidential by the Company or its
Affiliates, or from all the relevant circumstances should reasonably be assumed
by the Employee to be confidential and proprietary to the Company or its
Affiliates, or (iv) is not generally known by non-Company personnel. Such
Confidential Information includes, without

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limitation, the following types of information and other information of a
similar nature (whether or not reduced to writing or designated as
confidential):

             (a) Internal personnel and financial information of the Company or
         its Affiliates, information regarding oil and gas properties including
         reserve information, vendor information (including vendor
         characteristics, services, prices, lists and agreements), purchasing
         and internal cost information, internal service and operational
         manuals, and the manner and methods of conducting the business of the
         Company or its Affiliates;

             (b) Marketing and development plans, price and cost data, price and
         fee amounts, pricing and billing policies, bidding, quoting procedures,
         marketing techniques, forecasts and forecast assumptions and volumes,
         and future plans and potential strategies (including, without
         limitation, all information relating to any oil and gas prospect and
         the identity of any key contact within the organization of any
         acquisition prospect) of the Company or its Affiliates which have been
         or are being discussed;

             (c) Names of customers and their representatives, contracts
         (including their contents and parties), customer services, and the
         type, quantity, specifications and content of products and services
         purchased, leased, licensed or received by customers of the Company or
         its Affiliates; and

             (d) Confidential and proprietary information provided to the
         Company or its Affiliates by any actual or potential customer,
         government agency or other third party (including businesses,
         consultants and other entities and individuals).

         8.3 As a consequence of the Employee's acquisition or anticipated
acquisition of Confidential Information, the Employee shall occupy a position of
trust and confidence with respect to the affairs and business of the Company and
its Affiliates. In view of the foregoing and of the consideration to be provided
to the Employee, the Employee agrees that it is reasonable and necessary that
the Employee make each of the following covenants:

             (a) At any time during the Employment Period and thereafter, the
         Employee shall not disclose Confidential Information to any person or
         entity, either inside or outside of the Company, other than as
         necessary in carrying out his duties and responsibilities as set forth
         in Section 2 hereof, without first obtaining the Company's prior
         written consent (unless such disclosure is compelled pursuant to court
         orders or subpoena, and at which time the Employee shall give notice of
         such proceedings to the Company).

             (b) At any time during the Employment Period and thereafter, the
         Employee shall not use, copy or transfer Confidential Information other
         than as necessary in carrying out his duties and responsibilities as
         set forth in Section 2 hereof, without first obtaining the Company's
         prior written consent.

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             (c) On the Date of Termination, the Employee shall promptly deliver
         to the Company (or its designee) all written materials, records and
         documents made by the Employee or which came into his possession prior
         to or during the Employment Period concerning the business or affairs
         of the Company or its Affiliates, including, without limitation, all
         materials containing Confidential Information.

9.       Disclosure of Information, Ideas, Concepts, Improvements, Discoveries
         and Inventions.

         As part of the Employee's fiduciary duties to the Company, the Employee
agrees that during his employment by the Company and for a period of three years
following the Date of Termination, the Employee shall promptly disclose in
writing to the Company all information, ideas, concepts, improvements,
discoveries and inventions, whether patentable or not, and whether or not
reduced to practice, which are conceived, developed, made or acquired by the
Employee, either individually or jointly with others, and which relate to the
business, products or services of the Company or its Affiliates, irrespective of
whether the Employee used the Company's time or facilities and irrespective of
whether such information, idea, concept, improvement, discovery or invention was
conceived, developed, discovered or acquired by the Employee on the job, at
home, or elsewhere. This obligation extends to all types of information, ideas
and concepts, including information, ideas and concepts relating to new types of
services, corporate opportunities, acquisition prospects, the identity of key
representatives within acquisition prospect organizations, prospective names or
service marks for the Company's business activities, and the like.

         10. Ownership of Information, Ideas, Concepts, Improvements,
Discoveries and Inventions, and all Original Works of Authorship.

         10.1 All information, ideas, concepts, improvements, discoveries and
inventions, whether patentable or not, which are conceived, made, developed or
acquired by the Employee or which are disclosed or made known to the Employee,
individually or in conjunction with others, during the Employee's employment by
the Company and which relate to the business, products or services of the
Company or its Affiliates (including, without limitation, all such information
relating to corporate opportunities, research, financial and sales data, pricing
and trading terms, evaluations, opinions, interpretations, acquisition
prospects, the identity of customers or their requirements, the identity of key
contacts within the customers' organizations or within the organization of
acquisition prospects, marketing and merchandising techniques, and prospective
names and service marks) are and shall be the sole and exclusive property of the
Company. Furthermore, all drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, maps and all
other writings or materials of any type embodying any of such information,
ideas, concepts, improvements, discoveries and inventions are and shall be the
sole and exclusive property of the Company.

         10.2 In particular, the Employee hereby specifically sells, assigns,
transfers and conveys to the Company all of his worldwide right, title and
interest in and to all such information, ideas, concepts, improvements,
iscoveries or inventions, and any United States or foreign applications for

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patents, inventor's certificates or other industrial rights which may be filed
in respect thereof, including divisions, continuations, continuations-in_part,
reissues and/or extensions thereof, and applications for registration of such
names and service marks. The Employee shall assist the Company and its nominee
at all times, during the Employment Period and thereafter, in the protection of
such information, ideas, concepts, improvements, discoveries or inventions, both
in the United States and all foreign countries, which assistance shall include,
but shall not be limited to, the execution of all lawful oaths and all
assignment documents requested by the Company or its nominee in connection with
the preparation, prosecution, issuance or enforcement of any applications for
United States or foreign letters patent, including divisions, continuations,
continuations-in-part, reissues and/or extensions thereof, and any application
for the registration of such names and service marks.

         10.3 In the event the Employee creates, during the Employment Period,
any original work of authorship fixed in any tangible medium of expression which
is the subject matter of copyright (such as, videotapes, written presentations
on acquisitions, computer programs, drawings, maps, architectural renditions,
models, manuals, brochures or the like) relating to the Company's business,
products or services, whether such work is created solely by the Employee or
jointly with others, the Company shall be deemed the author of such work if the
work is prepared by the Employee in the scope of his employment; or, if the work
is not prepared by the Employee within the scope of his employment but is
specially ordered by the Company as a contribution to a collective work, as a
part of a motion picture or other audiovisual work, as a translation, as a
supplementary work, as a compilation or as an instructional text, then the work
shall be considered to be work made for hire, and the Company shall be the
author of such work. If such work is neither prepared by the Employee within the
scope of his employment nor a work specially ordered and deemed to be a work
made for hire, then the Employee hereby agrees to sell, transfer, assign and
convey, and by these presents, does sell, transfer, assign and convey, to the
Company all of the Employee's worldwide right, title and interest in and to such
work and all rights of copyright therein. The Employee agrees to assist the
Company and its Affiliates, at all times, during the Employment Period and
thereafter, in the protection of the Company's worldwide right, title and
interest in and to such work and all rights of copyright therein, which
assistance shall include, but shall not be limited to, the execution of all
documents requested by the Company or its nominee and the execution of all
lawful oaths and applications for registration of copyright in the United States
and foreign countries.

11.      Employee's Non-Competition Obligation.

         11.1 (a) Until the Date of Termination, the Employee shall not, acting
         alone or in conjunction with others, directly or indirectly, in any of
         the business territories in which the Company or any of its Affiliates
         is presently or from time to time during the Employment Period
         conducting business, invest or engage, directly or indirectly, in any
         business which is competitive with that of the Company or accept
         employment with or render services to such a competitor as a director,
         officer, agent, employee or consultant, or take any action inconsistent
         with the fiduciary relationship of an employee to his employer;
         provided, however, that the beneficial ownership by the Employee of up
         to three percent of the Voting

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         Stock of any corporation subject to the periodic reporting requirements
         of the Exchange Act shall not violate this Section 11.1(a).

             (b) In addition to the other obligations agreed to by the Employee
         in this Agreement, the Employee agrees that until the Date of
         Termination, he shall not at any time, directly or indirectly, (i)
         induce, entice or solicit any employee of the Company to leave his
         employment, (ii) contact, communicate or solicit any customer or
         acquisition prospect of the Company derived from any customer list,
         customer lead, mail, printed matter or other information secured from
         the Company or its present or past employees or (iii) in any other
         manner use any customer lists or customer leads, mail, telephone
         numbers, printed material or other information of the Company relating
         thereto.

         11.2 (a) If this Agreement is terminated either by the Company for
         Cause or by the Employee for any reason, then for a period of one year
         following the Date of Termination, the Employee shall not, acting alone
         or in conjunction with others, directly or indirectly, in any of the
         business territories in which the Company or any of its Affiliates is
         presently or at the Date of Termination conducting business, invest or
         engage, directly or indirectly, in any business which is competitive
         with that of the Company as of the Date of Termination or accept
         employment with or render services to such a competitor as a director,
         officer, agent, employee or consultant, or take any action inconsistent
         with the fiduciary relationship of an employee to his employer;
         provided, however, that the beneficial ownership by the Employee of up
         to three percent of the Voting Stock of any corporation subject to the
         periodic reporting requirements of the Exchange Act shall not violate
         this Section 11.2(a).

             (b) In addition to the other obligations agreed to by the Employee
         in this Agreement, the Employee agrees that if this Agreement is
         terminated either by the Company for Cause or by the Employee for any
         reason, then for a period of one year following the Date of
         Termination, he shall not at any time, directly or indirectly, (i)
         induce, entice or solicit any employee of the Company to leave his
         employment, (ii) contact, communicate or solicit any customer or
         acquisition prospect of the Company derived from any customer list,
         customer lead, mail, printed matter or other information secured from
         the Company or its present or past employees or (iii) in any other
         manner use any customer lists or customer leads, mail, telephone
         numbers, printed material or other information of the Company relating
         thereto.

         11.3 If this Agreement is terminated either by the Company Without
Cause, then the Employee shall not be subject to any non-competition obligation.

12.      Miscellaneous.

         12.1 Notices. All notices and other communications required or
permitted hereunder or necessary or convenient in connection herewith shall be
in writing and shall be deemed to have been given when delivered by hand or
mailed by registered or certified mail, return receipt requested, as follows
(provided that notice of change of address shall be deemed given only when
received):

                                       12
<PAGE>   13

                  If to the Company to:

                  400 E. Kaliste Saloom Road
                  Suite 3000
                  Lafayette, Louisiana 70508

                  If to the Employee to:

                  400 E. Kaliste Saloom Road
                  Suite 3000
                  Lafayette, Louisiana 70508

or to such other names or addresses as the Company or the Employee, as the case
may be, shall designate by notice to the other party hereto in the manner
specified in this Section 12.1.

         12.2 Waiver of Breach. The waiver by any party hereto of a breach of
any provision of this Agreement shall neither operate nor be construed as a
waiver of any subsequent breach by any party.

         12.3 Assignment. This Agreement shall be binding upon and inure to the
benefit of the Company, its successors, legal representatives and assigns, and
upon the Employee, his heirs, executors, administrators, representatives and
assigns; provided, however, the Employee agrees that his rights and obligations
hereunder are personal to him and may not be assigned without the express
written consent of the Company.

         12.4 Entire Agreement; No Oral Amendments. This Agreement, together
with any exhibit attached hereto and any document, policy, rule or regulation
referred to herein, replaces and merges all previous agreements and discussions
relating to the same or similar subject matter between the Employee and the
Company and constitutes the entire agreement between the Employee and the
Company with respect to the subject matter of this Agreement. This Agreement may
not be modified in any respect by any verbal statement, representation or
agreement made by any employee, officer, or representative of the Company or by
any written agreement unless signed by an officer of the Company who is
expressly authorized by the Company to execute such document.

         12.5 Enforceability. If any provision of this Agreement or application
thereof to anyone or under any circumstances shall be determined to be invalid
or unenforceable, such invalidity or unenforceability shall not affect any other
provisions or applications of this Agreement which can be given effect without
the invalid or unenforceable provision or application.

         12.6 Jurisdiction; Arbitration. The laws of the State of Louisiana
shall govern the interpretation, validity and effect of this Agreement without
regard to the place of execution or the place for performance thereof. Any
controversy or claim arising out of or relating to this Agreement, or the breach
thereof, shall be settled by arbitration located in Houston, Texas administered
by the American Arbitration Association in accordance with its applicable
arbitration rules, and the judgment

                                       13
<PAGE>   14

on the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof, which judgment shall be binding upon the parties hereto.

         12.7 Injunctive Relief. The Company and the Employee agree that a
breach of any term of this Agreement by the Employee would cause irreparable
damage to the Company and that, in the event of such breach, the Company shall
have, in addition to any and all remedies of law, the right to any injunction,
specific performance and other equitable relief to prevent or to redress the
violation of the Employee's duties or responsibilities hereunder.

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

                                     PETROQUEST ENERGY, INC.

                                     By: /s/ Charles T. Goodson
                                        ----------------------------------------
                                     Name: Charles T. Goodson
                                          --------------------------------------
                                     Title President and Chief Executive Officer
                                          --------------------------------------

                                     EMPLOYEE:

                                     By: /s/ Michael O. Aldridge
                                        ----------------------------------------
                                             Michael O. Aldridge

                                       14<PAGE>   1
                                                                    EXHIBIT 10.2

                              TERMINATION AGREEMENT

         THIS TERMINATION AGREEMENT, dated as of May 8, 2000 is made and entered
into by and between PetroQuest Energy, Inc., a Delaware corporation with its
principal office at 400 E. Kaliste Saloom Road, Suite 3000, Lafayette, Louisiana
70508 (the "Company"), and Michael O. Aldridge ("Executive").

                                 R E C I T A L S

         A. Company desires to enter into an agreement with Executive whereby
severance benefits will be paid to Executive on a change in control of the
Company and consequent actual or constructive termination of Executive's
employment.

         B. This Agreement sets forth the severance benefits which the Company
agrees that it will pay to the Executive if Executive's employment with the
Company terminates under one of the circumstances described herein following a
Change in Control of the Company.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants contained herein, the parties hereto agree as follows:

         1. Term of Agreement. This Agreement shall be effective immediately on
the date hereof and shall continue in effect through December 31, 2003;
provided, however, that commencing on January 1, 2004 and each January 1
thereafter, the term of this Agreement shall automatically be extended for one
additional year unless not later than September 30 of the preceding year, the
Company shall have given notice that it does not wish to extend this Agreement;
provided, further, that notwithstanding any such notice by the Company not to
extend, this Agreement shall automatically be extended for 24 months beyond the
term provided herein if a Change in Control, as defined in Section 3 of this
Agreement, has occurred during the term of this Agreement.

         2. Effect on Employment Rights. This Agreement is not part of any
employment agreement that the Company and Executive may have entered. Nothing in
this Agreement shall confer upon Executive any right to continue in the employ
of the Company or interfere with or restrict in any way the rights of the
Company, which are hereby expressly reserved, to terminate for any reason, with
or without cause.

         Executive agrees that, subject to the terms and conditions of this
Agreement, in the event of a potential change in control of the Company (as
defined below), Executive will remain in the employ of the Company during the
pendency of any such potential change in control and for a period of one year
after the occurrence of an actual Change in Control. For this purpose, a
"potential change in

<PAGE>   2

control of the Company" shall be deemed to have occurred if (a) the Company
enters into an agreement the consummation of which would result in the
occurrence of a Change in Control, (b) any person (including the Company)
publicly announces an intention to take or consider taking action which if
consummated would constitute a Change in Control or (c) the Board of Directors
of the Company (the "Board") adopts a resolution to the effect that a potential
change in control of the Company has occurred.

         3. Change in Control. For purposes of this Agreement, a "Change in
Control" of the Company shall be deemed to have occurred if any of the events
set forth in any one of the following paragraphs shall occur:

                  (a) any "person" (as defined in section 3(a)(9) of the
         Securities Exchange Act of 1934, as amended (the "Exchange Act") and as
         such term is modified in sections 13(d) and 14(d) of the Exchange Act),
         excluding the Company or any of its subsidiaries, a trustee or any
         fiduciary holding securities under an employee benefit plan of the
         Company of any of its subsidiaries, an underwriter temporarily holding
         securities pursuant to an offering of such securities or a corporation
         owned, directly or indirectly, by stockholders of the Company in
         substantially the same proportions as their ownership of the Company,
         is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
         the Exchange Act), directly or indirectly, of securities of the Company
         representing 30% or more of the combined voting power of the Company's
         then outstanding securities; or

                  (b) during any period of not more than two consecutive years,
         individuals who at the beginning of much period constitute the Board
         and any new director (other than a director designated by a Person who
         has entered into an agreement with the Company to effect a transaction
         described in clause (a), (c) or (d) of this paragraph) whose election
         by the Board or nomination for election by the Company's stockholders
         was approved by a vote of at least two-thirds (2/3) of the directors
         then still in office who either were directors at the beginning of the
         period or whose election or nomination for election was previously so
         approved, cease for any reason to constitute a majority thereof; or

                  (c) the shareholders of the Company approve a merger or
         consolidation of the Company with any other corporation, other than (i)
         a merger or consolidation which would result in the voting securities
         of the Company outstanding immediately prior thereto continuing to
         represent (either by remaining outstanding or by being converted into
         voting securities of the surviving entity), in combination with the
         ownership of any trustee or other fiduciary holder of securities under
         an employee benefit plan of the Company, at least 50% of the combined
         voting power of the voting securities of the Company or such surviving
         entity outstanding immediately after such merger or consolidation, or
         (ii) a merger or consolidation effected to implement a recapitalization
         of the Company (or similar transaction) in which no person acquires
         more than 50% of the combined voting power of the Company's then
         outstanding securities; or

                                        2
<PAGE>   3

                  (d) the shareholders of the Company approve a plan of complete
         liquidation of the Company or an agreement for the sale or disposition
         by the Company of all or substantially all of the Company's assets.

         Notwithstanding the foregoing, if any transaction described under
         paragraphs (a), (c) and (d) of this Section 3 results in consideration
         to the Company or the shareholders of the Company, as the case may be,
         from such transaction with a value (as determined in good faith by the
         Compensation Committee of the Board) of less than $1.00 per share
         (subject to adjustment for stock splits and combination and stock
         dividends after the date hereof), no Change in Control will be deemed
         to occur unless such transaction is approved by persons holding not
         less than two-thirds of the combined voting power of the Company's
         voting securities entitled to vote on such transaction. In addition, no
         Change in Control shall be deemed to occur if there is consummated any
         transaction or series of integrated transactions immediately following
         which, in the judgment of the Compensation Committee of the Board, the
         holders of the Company's Common Stock immediately prior to such
         transaction or series of transactions continue to have the same
         proportionate ownership in an entity which owns all or substantially
         all of the assets of the Company immediately prior to such transaction
         or series of transactions.

         4. Termination of Employment Following a Change in Control. Executive
shall be entitled to the benefits provided in Section 5 hereof upon the
subsequent termination of Executive's employment by the Company within two years
after a Change in Control which occurs during the term of this Agreement,
provided such termination is (a) by the Company other than for cause, as defined
below, or (b) by Executive for Good Reason, as defined below. Executive shall
not be entitled to the benefits of Section 5, any other provision hereof to the
contrary notwithstanding, if Executive's employment terminates: (i) pursuant to
Executive retiring at age 65, (ii) by reason of Executive's total and permanent
disability, or (iii) by reason or Executive's death. As used herein, "total and
permanent disability" means a condition which prevents Executive from performing
to a significant degree the essential duties of his or her position and is
expected to be of long-term duration or result in death. A determination of
total and permanent disability must be based on competent medical evidence.

                  (a)      Cause.

                           (i) Definition. Termination by the Company of
                  Executive's employment for Cause shall mean termination upon
                  Executive's willful engaging in misconduct which is
                  demonstrably and materially injurious to the Company and its
                  subsidiaries taken as a whole. No act, or failure to act, on
                  Executive's part shall be considered "willful" unless done, or
                  omitted to be done, by Executive not in good faith and without
                  reasonable belief that Executive's action or omission was in
                  the best interest of the Company or its subsidiaries.
                  Notwithstanding the foregoing, Executive shall not be deemed
                  to have been terminated for Cause unless and until there shall
                  have been delivered to Executive a copy of a resolution duly
                  adopted by the affirmative

                                        3
<PAGE>   4

                  vote of not less than three quarters of the entire membership
                  of the Board at a meeting of the Board called and held for the
                  purpose of making a determination of whether Cause for
                  termination exists (after reasonable notice to Executive and
                  an opportunity for Executive to be heard before the Board),
                  finding that in the good faith opinion of the Board Executive
                  was guilty of misconduct as set forth above in this subsection
                  4(a)(i) and specifying the particulars thereof in detail.

                           (ii) Remedy by Executive. If the Company gives
                  Executive a Notice of Termination which states that the basis
                  for terminating Executive's employment is Cause, Executive
                  shall have ten days after receipt of such Notice to remedy the
                  facts and circumstances which provided Cause. The Board (or
                  any duly authorized Committee thereof) shall make a good faith
                  reasonable determination immediately after such ten-day period
                  whether such facts and circumstances have been remedied and
                  shall communicate such determination in writing to Executive.
                  If the Board determines that an adequate remedy has not
                  occurred, then the initial Notice of Termination shall remain
                  in effect.

                  (b) Good Reason. After a Change in Control, Executive may
         terminate employment with the Company at any time during the term of
         this Agreement if Executive has made a good faith reasonable
         determination that Good Reason exists for this termination.

                           (i) Definition. For purposes of this Agreement, "Good
                  Reason" shall mean any of the following actions, if taken
                  without the express written consent of Executive:

                                    A. any material change by the Company in
                           Executive's functions, duties, or responsibilities
                           which change would cause Executive's position with
                           the Company to become of less dignity,
                           responsibility, importance, or scope from the
                           position and attributes that applied to Executive
                           immediately prior to the Change in Control;

                                    B. any significant reduction in Executive's
                           base salary, other than a reduction effected as part
                           of an across-the-board reduction affecting all
                           executive employees of the Company;

                                    C. any material failure by the Company to
                           comply with any of the provisions of this Agreement
                           (or of any employment agreement between the parties);

                                    D. the Company's requiring Executive to be
                           based at any office or location more than 45 miles
                           from the home at which the Executive resides on the
                           date immediately preceding the Change in Control,
                           except for travel reasonably required in the
                           performance of Executive's responsibilities and

                                        4
<PAGE>   5

                           commensurate with the amount of travel required of
                           Executive prior to the Change in Control; or

                                    E. any failure by the Company to obtain the
                           express assumption of this Agreement by any successor
                           or assign of the Company.

                                    Executive's right to terminate employment
                           for Good Reason pursuant to this subsection 4(b)(I)
                           shall not be affected by Executive's incapacity due
                           to physical or mental illness.

                           (ii) Remedy by Company. If Executive gives the
                  Company a Notice of Termination which states that the basis
                  for Executive's termination of employment is Good Reason, the
                  Company shall have ten days after receipt of such Notice to
                  remedy the facts and circumstances which provided Good Reason.
                  Executive shall make a good faith reasonable determination
                  immediately after such ten-day period whether such facts and
                  circumstances have been remedied and shall communicate such
                  determination in writing to the Company. If Executive
                  determines that adequate remedy has not occurred, then the
                  initial Notice of Termination shall remain in effect.

                           (iii) Determination by Executive Presumed Correct.
                  Any determination by Executive pursuant to this Section 4(b)
                  that Good Reason exists for Executive's termination of
                  employment and that adequate remedy has not occurred shall be
                  presumed correct and shall govern unless the party contesting
                  the determination shows by a clear preponderance of the
                  evidence that it was not a good faith reasonable
                  determination.

                           (iv) Severance Payment Made Notwithstanding Dispute.
                  Notwithstanding any dispute concerning whether Good Reason
                  exists for termination of employment or whether adequate
                  remedy has occurred, the Company shall immediately pay to
                  Executive, as specified in Section 5, any amounts otherwise
                  due under this Agreement. Executive may be required to repay
                  such amounts to the Company if any such dispute is finally
                  determined adversely to Executive.

                  (c) Notice of Termination. Any termination of Executive's
         employment by the Company or by Executive hereunder shall be
         communicated by a Notice of Termination to the other party hereto. For
         purposes of this Agreement, a "Notice of Termination" shall mean a
         written notice which shall indicate the specific termination provisions
         in this Agreement relied upon any which sets forth (i) in reasonable
         detail the facts and circumstances claimed to provide a basis for
         termination of Executive's employment under the provision so indicated
         and (ii) the date of Executive's termination of employment, which shall
         be no earlier than 10 days after such Notice is received by the other
         party. Any purported termination of the Executive's employment by the
         Company which is not effected pursuant to a Notice of Termination
         satisfying the requirements of this Agreement shall not be effective.
         In the case

                                        5
<PAGE>   6

         of a termination for Cause, the Notice of Termination shall also
         satisfy the requirements set forth in Section 4(a)(i).

         5. Severance Payment Upon Termination of Employment. If Executive's
employment with the Company is terminated during the term of this Agreement and
after a Change in Control (a) by the Company other than for Cause, or (b) by
Executive for Good Reason, then Executive shall be entitled to the following:

                  (a) Lump-Sum Severance Payment. In lieu of any further salary
         payments to the Executive for periods subsequent to the Date of
         Termination, the Company shall pay to the Executive a lump sum
         severance payment, in cash, equal to two (2) (or, if less, the number
         of years, including fractions, from the date of Termination until the
         Executive would have reached age sixty-five (65)) times the sum of (a)
         the Executive's Annual Base Salary in effect on date of termination and
         (b) the Executive's most recent Annual Bonus. if the most recent Annual
         Bonus was a stock option or a stock grant, the value of the bonus will
         be deemed to be the number of option shares times the closing price of
         the Company's Common Stock for the 20 trading days prior to
         Termination.

                  (b) Continued Benefits. For a twenty-four (24) month period
         (or, if less, the number of months from the Date of Termination until
         the Executive would have reached age sixty-five (65)) after the Date of
         Termination, the Company shall provide the Executive with life
         insurance, health, disability and other welfare benefits ("Welfare
         Benefits") substantially similar in all respects to those which the
         Executive is receiving immediately prior to the Notice of Termination
         (without giving effect to any reduction in such benefits subsequent to
         the Potential Change in Control preceding the Change in Control or the
         Change in Control which reduction constitutes or may constitute God
         Reason). Benefits otherwise receivable by an Executive pursuant to this
         Section shall be reduced to the extent substantially similar benefits
         are actually received by or made available to the Executive by any
         other employer during the same time period for which such benefits
         would be provided pursuant to this Section at a cost to the Executive
         that is commensurate with the cost incurred by the Executive
         immediately prior to the Executive's Date of Termination (without
         giving effect to any increase in costs paid by the Executive after the
         Potential Change in Control preceding the Change in Control or the
         Change in Control which constitutes or may constitute Good Reason);
         provided, however, that if the Executive becomes employed by a new
         employer which maintains a medical plan that either (i) does not cover
         the Executive or a family member or dependent with respect to a
         preexisting condition which was covered under the applicable Company
         medical plan, or (ii) does not cover the Executive or a family member
         or dependent for a designated waiting period, the Executive's coverage
         under the applicable Company medical plan shall continue (but shall be
         limited in the event of noncoverage due to a preexisting condition, to
         such preexisting condition) until the earlier of the end of the
         applicable period of noncoverage under the new employer's plan or the
         second anniversary of the Executive's Date of Termination. The
         Executive agrees to report to the Company any coverage and benefits
         actually received by the Executive or made available to the Executive

                                        6
<PAGE>   7

         from such other employer(s). The Executive shall be entitled to elect
         to change his level of coverage and/or his choice of coverage options
         (such as Executive only or family medical coverage) with respect to the
         Welfare Benefits to be provided by the Company to the Executive to the
         same extent that actively employed senior executives of the Company are
         permitted to make such changes; provided, however, that in the event of
         any such changes the Executive shall pay the amount of any cost
         increase that would actually be paid by an actively employed executive
         of the Company by reason of making the same change in his level of
         coverage or coverage options.

                  (c) Gross-Up Payment. In the event that the Executive becomes
         entitled to the Severance Benefits or any other benefits or payments
         under this Agreement (other than pursuant to this Section) by reason of
         the accelerated vesting of stock options thereunder (together, the
         "Total Benefits"), and in the event that any of the Total Benefits will
         be subject to the Excise Tax, the Company shall pay to the Executive an
         additional amount (the "Gross-Up Payment") such that the net amount
         retained by the Executive, after deduction of any Excise Tax on the
         Total Benefits and any federal, state and local income tax, Excise Tax
         and FICA and Medicare withholding taxes upon the payment provided for
         by this Section, shall be equal to the Total Benefits.

                  For purposes of determining whether any of the Total Benefits
         will be subject to the Excise Tax and the amount of such Excise Tax,
         (i) any other payments or benefits received or to be received by the
         Executive in connection with a Change in Control or the Executive's
         termination of employment (whether pursuant to the terms of this
         Agreement or any other agreement, plan or arrangement with the Company,
         any Person whose actions result in a Change in Control or any Person
         affiliated with the Company or such Person) shall be treated as
         "parachute payments" within the meaning of Section 280G(b)(2) of the
         Cod, and all "excess parachute payments" within the meaning the Section
         280G(b)(1) shall be treated as subject to the Excise Tax, unless in the
         opinion of tax counsel ("Tax Counsel") selected by the Company's
         independent auditors and acceptable to the Executive, such other
         payments or benefits (in whole or in part) do not constitute parachute
         payments, or such excess parachute payments (in whole or in part)
         represent reasonable compensation for services actually rendered within
         the meaning of Section 280G(b)(4) of the Code in excess of the Base
         Amount, or are otherwise not subject to the Excise Tax, (ii) the amount
         of the Total Benefits which shall be treated as subject to the Excise
         Tax shall be equal to the lesser of (A) the total amount of the Total
         Benefits reduced by the amount of such Total Benefits that in the
         opinion of Tax Counsel are not parachute payments, or (B) the amount of
         excess parachute payments within the meaning of Section 280G(b)(1)
         (after applying clause (i), above), and (iii) the value of any non-cash
         benefits or any deferred payment or benefit shall be determined by the
         Company's independent auditors in accordance with the principles of
         sections 280G(d)(3) and (4) of the Code. For purposes of determining
         the amount of the Gross-Up Payment, the Executive shall be deemed to
         pay federal income taxes at the highest marginal rate of federal income
         taxation in the calendar year in which the Gross-Up Payment is to be
         made and state and local income taxes at the highest marginal rate of
         taxation in the state and locality of the

                                        7
<PAGE>   8

         Executive's residence on the Date of Termination, net of the reduction
         in federal income taxes which could be obtained from deduction of such
         state and local taxes (calculated by assuming that any reduction under
         Section 68 of the Code in the amount of itemized deductions allowable
         to the Executive applies first to reduce the amount of such state and
         local income taxes that would otherwise be deductible by the
         Executive).

         In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time of termination of the
Executive's employment, the Executive shall repay to the Company, at the time
that the amount of such reduction in Excise Tax is finally determined, the
portion of the Gross-Up Payment attributable to such reduction (plus that
portion of the Gross-Up Payment attributable to the Excise Tax, federal, state
and local income taxes and FICA and Medicare withholding taxes imposed on the
portion of the Gross-Up Payment being repaid by the Executive to the extent that
such repayment results in a reduction in Excise Tax, FICA and Medicare
withholding taxes and/or federal, state or local income taxes) plus interest on
the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of
the Code. In the event that the Excise Tax is determined to exceed the amount
taken into account hereunder at the time of the termination of the Executive's
employment (including by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-Up Payment), the Company shall
make an additional Gross-Up Payment, determined as previously described, to the
Executive in respect to such excess (plus any interest, penalties or additions
payable by the Executive with respect to such excess) at the time that the
amount of such excess is finally determined.

                  (d) Timing of Payments. The payments provided for in Sections
         5(a) and 5(c) shall be made not later than the fifth (5th) day
         following the Date of Termination; provided, however, that if the
         amounts of such payments cannot be finally determined on or before such
         day, the Company shall pay to the Executive on such day an estimate, as
         determined in good faith by the Company, of the minimum amount of such
         payments and shall pay the remainder of such payments (together with
         interest at the rate provided in Section 1274(b)(2)(B) of the Code from
         the firth (5th) day following the Date of Termination to the payment of
         such remainder) as soon as the amount thereof can be determined but in
         no event later than the thirtieth (30th) day after the Date of
         Termination. In the event that the amount of the estimated payments
         exceeds the amount subsequently determined to have been due, such
         excess shall constitute a loan by the Company to the Executive, payable
         on the fifth (5th) business day after demand by the Company (together
         with interest at the rate provided in Section 1274(b)(2)(B) of the Code
         from the fifth (5th) day following the Date of Termination to the
         repayment of such excess).

         6. Reimbursement of Legal Costs. The Company shall pay to the Executive
all legal fees and expenses incurred by the Executive as a result of a
termination which entitles the Executive to any payments under this Agreement
including all such fees and expenses, if any, incurred in contesting or
disputing any Notice of Intent to Terminate under Section 4(a) hereof or in
seeking to obtain or enforce any right or benefit provided by this Agreement or
in connection with any tax audit or proceeding to the extent attributable to the
application of Section 4999 of the Code to any payment

                                        8
<PAGE>   9

or benefit provide hereunder. Such payments shall be made within five (5)
business days after delivery of the Executive's respective written requests for
payment accompanied by such evidence of fees and expenses incurred as the
Company reasonably may require.

         7. Damages. Executive shall not be required to mitigate damages with
respect to the amount of any payment provided under this Agreement by seeking
other employment or otherwise, nor shall the amount of any payment provided
under this Agreement be reduced by retirement benefits, deferred compensation or
any compensation earned by Executive as a result of employment by another
employer.

         8. Successor to Company. The Company shall require any successor or
assign (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, by agreement in form and substance satisfactory to Executive,
expressly, absolutely and unconditionally to 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 or assignment had taken place. A
used in this Agreement, "Company" shall mean the Company as hereinbefore defined
and any successor or assign to its business and/or assets as aforesaid which
executes and delivers the agreement provided for in this section or which
otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law.

         9. Heirs of Executive. This Agreement shall inure to the benefit of and
be enforceable by Executive's personal and legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If
Executive should die while any amounts are still payable to Executive hereunder,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to Executive's devisee, legatee, or other
designee or, if there be so much designee, to Executive's estate.

         10. Arbitration. Any dispute, controversy or claim arising under or in
connection with this Agreement, or the breach thereof, shall be settled
exclusively by arbitration in accordance with the Rules of the American
Arbitration Association then in effect. Judgment upon the award rendered by the
arbitrator(s) may be entered in any court of competent jurisdiction. Any
arbitration held pursuant to this section in connection with Executive's
termination of employment shall take place in Houston, Texas at the earliest
possible date. If any proceeding is necessary to enforce or interpret the terms
of this Agreement, or to recover damages for breach thereof, the prevailing
party shall be entitled to reasonable attorneys' fees and necessary costs and
disbursements, not to exceed in the aggregate one percent (1%) of the net worth
of the other party, in addition to any other relief to which he or it may be
entitled.

         11. Notice. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered by messenger or in person, or when
mailed by United States registered mail, return receipt requested, postage
prepaid, as follows:

                                        9
<PAGE>   10

         If to the Company:         400 E. Kaliste  Saloom Road
                                    Suite 3000
                                    Lafayette, Louisiana 70508
                                    Attention: President

         If to the Executive:       Michael O. Aldridge
                                    400 E. Kaliste  Saloom Road
                                    Suite 3000
                                    Lafayette, Louisiana 70508

or such other address as either party may have furnished to the other in writing
in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

         12.      General Provisions.

                  (a) Executive's rights and obligations under this Agreement
         shall not be transferable by assignment or otherwise, nor shall
         Executive's rights be subject to encumbrance or subject to the claims
         of the Company's creditors. Nothing in this Agreement shall prevent the
         consolidation of the Company with, or its merger into, any other
         corporation, or the sale by the Company of all or substantially all of
         its properties or assets; and this Agreement shall inure to the benefit
         of, be binding upon and be enforceable by, any successor surviving or
         resulting corporation, or other entity to which such assets shall be
         transferred. This Agreement shall not be terminated by the voluntary or
         involuntary dissolution of the Company.

                  (b) This Agreement and any Employment Agreement with Executive
         plus terms of any stock option plans or grants constitutes the entire
         agreement between the parties hereto in respect to the rights and
         obligations of the parties following a Change in Control. This
         Agreement supersedes and replaces all prior oral and written
         agreements, understandings, commitments, and practices between the
         parties (whether or not fully performed by Executive prior to the date
         hereof), which shall be of no further force or effect.

                  (c) The provisions of this Agreement shall be regarded as
         divisible, and if any of said provisions or any part thereof are
         declared invalid or unenforceable by a court of competent jurisdiction,
         the validity and enforceability of the remainder of such provisions or
         parts thereof and the applicability thereof shall not be affected
         thereby.

                  (d) This Agreement may not be amended or modified except by a
         written instrument executed by the Company and Executive.

                  (e) This Agreement and the rights and obligations hereunder
         shall be governed by and construed in accordance with the laws of the
         State of Texas.

                                       10
<PAGE>   11

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                      PetroQuest Energy, Inc.,
                                          a Delaware Corporation

                                      By:      /s/ Charles T. Goodson
                                            ----------------------------
                                               Charles T. Goodson
                                               President and CEO

                                               /s/ Michael O. Aldridge
                                            ----------------------------
                                                        Executive

                                       11

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