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                                                                    EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT is made effective as of May 1, 2000 between W-H
ENERGY SERVICES, INC., a Texas corporation (hereinafter called the "Company" or
"W-H") and William J. Thomas, III (hereinafter called the "Employee").

     WHEREAS, the parties hereto desire to enter into a contract to provide for
the employment of Employee by the Company;

     NOW, THEREFORE, the parties hereto mutually agree as follows:

     1.  The Company hereby employs the Employee and the Employee hereby agrees
         to serve the Company as Vice President of W-H Energy Services, Inc. or
         in such other capacity as may be mutually agreed. Employee agrees to
         devote his full time, energy and ability to the Company and its
         subsidiaries, except for incidental attention to the management of his
         personal affairs.

     2.  The employment of the Employee shall continue from the date hereof for
         a period ending in three (3) years and shall be automatically renewed
         for an additional three (3) year term expiring on April 30, 2006,
         unless the Company notifies Employee in writing on or before March 1,
         2003 of the Company's election not to renew this Employment Agreement
         or Employee notifies the Company in writing on or before March 1, 2003
         of Employee's election not to renew this Employment Agreement.

     3.  The Company shall pay to the Employee during the term of his
         employment, a salary at the annual rate of $250,000 payable in
         accordance with the Company's usual payroll practices plus an
         automobile or automobile allowance. Employee shall be entitled to
         receive incentive compensation up to a maximum of 100% of his base
         compensation each year, as shall be determined by the W-H Compensation
         Committee. W-H shall furnish Employee with all the fringe benefits made
         available by W-H to the executive officers of W-H and its subsidiaries,
         recognizing that such fringe benefits may be changed from time to time.
         Employee's salary will be reviewed every two years by the W-H
         Compensation Committee for possible increases based on Employee's
         performance.

     4.  In the event of Employee's death or permanent disability, which
         disability in the opinion of a physician selected by the Company
         renders him totally incapable of performing the services contemplated
         under his Employment Agreement, while in the employ of the Company, in
         addition to the other provisions of this Employment Agreement, the
         Company shall pay to Employee or the Estate of Employee, as the case
         may be, the base compensation which would otherwise be payable to
         Employee hereunder for a period of six (6) months after such permanent
         disability or death occurs. The Employee is entitled to obtain a second
         opinion, at the Company's cost, regarding his disability. If the
         physician chosen by the Employee disagrees with the Company physician,
         the Parties will obtain the opinion of a physician mutually agreeable
         to the first two physicians, whose opinion will decide whether the
         Employee is totally disabled and unable to perform under this
         Agreement.

     5.  In the event Employee voluntarily terminates his employment hereunder,
         Employee shall be entitled to receive only his salary to the date of
         such termination and shall not be entitled to receive any incentive
         compensation he might otherwise have been entitled to receive
         hereunder.

     6.  Except as provided in paragraph 7 hereunder, in the event Employee's
         employment is terminated by the Company, Employee shall be entitled to
         receive his salary for two (2) years, however, Employee shall not be
         entitled to receive any incentive compensation he might otherwise have
         been entitled to receive hereunder.

     7.  The Company shall deem any of the following events as cause for the
         termination of this Employment Agreement:

         (a)  Proven dishonesty by Employee or misappropriation of funds or
              property of the Company by Employee;

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         (b)  Willful breach by Employee of his duties hereunder; or

         (c)  Conduct on the part of Employee which would be materially adverse
              to the interest of the Company.

         In the event of termination of Employee's employment hereunder for
         cause, Employee shall be entitled to receive only his salary to the
         date of such termination and shall not be entitled to receive any
         incentive compensation he might otherwise have been entitled to receive
         hereunder.

     8.  The Employee shall not at any time hereafter divulge or disclose to any
         person, firm or company, or make use of any confidential or other
         information which constitutes special or exclusive knowledge connected
         with the business or operations of the Company or with any of its
         dealings, transactions or affairs and which he may acquire during the
         period of this Employment Agreement.

     9.  During the term of this Employment Agreement, Employee shall be
         entitled to reimbursement of all reasonable out-of-pocket expenses
         incurred on behalf of the Company by reason of his employment and to
         participate in the same employee benefits as all other employees of the
         Company, consistent with past practices.

     10. The Employee will not, during the term of this Agreement and for a
         period of one (1) year after his voluntary termination of this
         Agreement, engage, directly or indirectly, in any type of business in
         which W-H or any of its subsidiaries is actively engaged in the state
         of Texas and Louisiana, or in owning, managing, operating, controlling
         or being employed by or participating in the management, ownership,
         operation or control of, or be connected in any manner with, any
         business in the states of Texas and Louisiana of the type and character
         engaged in by W-H or any of its subsidiaries, except that Employee may
         hold up to 2% of the outstanding shares of any publicly held company
         engaged in such competitive activities.

     11. The rights and benefits of the Employee under this Employment Agreement
         may not be assigned by the Employee.

     12. This Employment Agreement shall be deemed to have been executed in,
         governed by and construed in accordance with the laws of the State of
         Texas.

     13. If any term, provision, covenant, or restriction of this agreement is
         held by a court of competent jurisdiction to be invalid, void, or
         unenforceable, the remainder of the terms, provisions, covenants and
         restrictions shall remain in full force and effect and shall in no way
         be affected, impaired or invalidated.

     14. This Employment Agreement supersedes the Amended Employment agreement
         originally dated June 14, 1994 and amended on September 30, 1996, which
         is hereby terminated.

     WITNESS THE EXECUTION HEREOF, effective as of the date herein before
indicated.

     W-H ENERGY SERVICES, INC.

      By:
         -------------------------------------
          Kenneth T. White, Jr., Chairman

      By:
         -------------------------------------
          William J. Thomas, III<PAGE>   1

                                                                   EXHIBIT 10.4

                           W-H ENERGY SERVICES, INC.

                             1997 STOCK OPTION PLAN

I. PURPOSE OF THE PLAN

     The W-H ENERGY SERVICES, INC. 1997 STOCK OPTION PLAN (the "Plan") is
intended to provide a means whereby certain employees of W-H ENERGY SERVICES,
INC., a Texas corporation (the "Company"), and its subsidiaries may develop a
sense of proprietorship and personal involvement in the development and
financial success of the Company, and to encourage them to remain with and
devote their best efforts to the business of the Company, thereby advancing the
interests of the Company and its shareholders.  Accordingly, the Company may
grant to certain employees ("Optionees") the option ("Option") to purchase
shares of the common stock of the Company ("Stock"), as hereinafter set forth.
Options granted under the Plan will be options that do not constitute incentive
stock options within the meaning of section 422(b) of the Internal Revenue Code
of 1986, as amended (the "Code").

II. ADMINISTRATION

     The Plan shall be administered by a committee (the "Committee") of, and
appointed by, the Board of Directors of the Company (the "Board").  If a
Committee is not appointed by the Board, the Board shall act as the Committee
for purposes of the Plan.  The Committee shall have sole authority to select
the Optionees from among those individuals eligible hereunder and to establish
the number of shares which may be issued under each Option.  In selecting the
Optionees from among individuals eligible hereunder and in establishing the
number of shares that may be issued under each Option, the Committee may take
into account the nature of the services rendered by such individuals, their
present and potential contributions to the Company's success and such other
factors as the Committee in its discretion shall deem relevant.  The Committee
is authorized to interpret the Plan and may from time to time adopt such rules
and regulations, consistent with the provisions of the Plan, as it may deem
advisable to carry out the Plan.  All decisions made by the Committee in
selecting the Optionees, in establishing the number of shares which may be
issued under each Option and in construing the provisions of the Plan shall be
final.

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III. OPTION AGREEMENTS

     (a) Each Option shall be evidenced by a written agreement between the
Company and the Optionee ("Option Agreement") which shall contain such terms and
conditions as may be approved by the Committee.  The terms and conditions of the
respective Option Agreements need not be identical.  Specifically, an Option
Agreement may provide for the surrender of the right to purchase shares under
the Option in return for a payment in cash or shares of Stock or a combination
of cash and shares of Stock equal in value to the excess of the fair market
value of the shares with respect to which the right to purchase is surrendered
over the option price therefor ("Stock Appreciation Rights"), on such terms and
conditions as the Committee in its sole discretion may prescribe; provided,
that, except as provided in Subparagraph VIII(c) hereof, the Committee shall
retain final authority (i) to determine whether an Optionee shall be permitted,
or (ii) to approve an election by an Optionee, to receive cash in full or
partial settlement of Stock Appreciation Rights.  Moreover, an Option Agreement
may provide for the payment of the option price, in whole or in part, by the
delivery of a number of shares of Stock (plus cash if necessary) having a fair
market value equal to such option price.

     (b) For all purposes under the Plan, the fair market value of a share of
Stock on a particular date shall be equal to the mean of the high and low sales
prices of the Stock (i) reported by the National Market System of NASDAQ on that
date or (ii) if the Stock is listed on a national stock exchange, reported on
the stock exchange composite tape on that date; or, in either case, if no prices
are reported on that date, on the last preceding date on which such prices of
the Stock are so reported.  If the Stock is traded over the counter at the time
a determination of its fair market value is required to be made hereunder, its
fair market value shall be deemed to be equal to the average between the
reported high and low or closing bid and asked prices of Stock on the most
recent date on which Stock was publicly traded.  In the event Stock is not
publicly traded at the time a determination of its value is required to be made
hereunder, the determination of its fair market value shall be made by the
Committee in such manner as it deems appropriate.

     (c) Each Option and all rights granted thereunder shall not be transferable
other than by will or the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined by the Code or Title I of the
Employee Retirement Income Security Act if 1974, as amended, or the rules
thereunder, and shall be exercisable during the Optionee's lifetime only by the
Optionee or the Optionee's guardian or legal representative.

IV.  ELIGIBILITY OF OPTIONEE

     Options may be granted only to individuals who are key employees (including
officers and directors who are also key employees) of the Company or any parent
or subsidiary corporation (as defined in section 424 of the Code) of the Company
at the time the Option is granted.

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V. SHARES SUBJECT TO THE PLAN

         The aggregate number of shares which may be issued under Options
granted under the Plan shall not exceed 40,000 shares of Stock. Such shares may
consist of authorized but unissued shares of Stock or previously issued shares
of Stock reacquired by the Company. Any of such shares which remain unissued and
which are not subject to outstanding Options at the termination of the Plan
shall cease to be subject to the Plan, but, until termination of the Plan, the
Company shall at all times make available a sufficient number of shares to meet
the requirements of the Plan. Should any Option hereunder expire or terminate
prior to its exercise in full, the shares theretofore subject to such Option
may again be subject to an Option granted under the Plan. The aggregate number
of shares which may be issued under the Plan shall be subject to adjustment in
the same manner as provided in Paragraph VIII hereof with respect to shares of
Stock subject to Options then outstanding. Exercise of an Option in any manner,
including an exercise involving a Stock Appreciation Right, shall result in a
decrease in the number of shares of Stock which may thereafter be available,
both for purposes of the Plan and for sale to any one individual, by the number
of shares as to which the Option is exercised. Separate stock certificates shall
be issued by the Company for those shares acquired pursuant to the exercise of
an Incentive Stock Option and for those shares acquired pursuant to the exercise
of any Option which does not constitute an Incentive Stock Option.

VI. OPTION PRICE

         The purchase price of Stock issued under each Option shall be
determined by the Committee.

VII. TERM OF PLAN

         The Plan was effective on August 11, 1997 (the "Effective Date"), the
date of its adoption by the Board. Except with respect to Options then
outstanding, if not sooner terminated under the provisions of Paragraph IX, the
Plan shall terminate upon and no further Options shall be granted after the
expiration of ten years from the date of its adoption by the Board.

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VIII. RECAPITALIZATION OR REORGANIZATION

     (a) The existence of the Plan and the Options granted hereunder shall not
affect in any way the right or power of the Board or the shareholders of the
Company to make or authorize any adjustment, recapitalization, reorganization
or other change in the Company's capital structure or its business, any merger
or consolidation of the Company, any issue of debt or equity securities, the
dissolution or liquidation of the Company or any sale, lease, exchange or other
disposition of all or any part of its assets or business or any other corporate
act or proceeding.

     (b) The shares with respect to which Options may be granted are shares of
Stock as presently constituted, but if, and whenever, prior to the expiration
of an Option theretofore granted, the Company shall effect a subdivision or
consolidation of shares of Stock or the payment of a stock dividend on Stock
without receipt of consideration by the Company, the number of shares of Stock
with respect to which such Option may thereafter be exercised (i) in the event
of an increase in the number of outstanding shares shall be proportionately
increased, and the purchase price per share shall be proportionately reduced,
and (ii) in the event of a reduction in the number of outstanding shares shall
be proportionately reduced, and the purchase price per share shall be
proportionately increased.

     (c) If the Company recapitalizes, reclassifies its capital stock, or
otherwise changes its capital structure (a "recapitalization"), the number and
class of shares of Stock covered by an Option theretofore granted shall be
adjusted so that such Option shall thereafter cover the number and class of
shares of stock and securities to which the Optionee would have been entitled
pursuant to the terms of the recapitalization if, immediately prior to the
recapitalization, the Optionee had been the holder of record of the number of
shares of Stock then covered by such Option. If (i) the Company shall not be
the surviving entity in any merger, consolidation or other reorganization (or
survives only as a subsidiary of an entity), (ii) the Company sells, leases or
exchanges all or substantially all of its assets to any other person or entity,
(iii) the Company is to be dissolved and liquidated, or (iv) any person or
entity, including a "group" as contemplated by Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (but excluding, however, any person
or entity (or group including a person or entity) who is a shareholder of the
Company on the Effective Date) acquires or gains ownership or control
(including, without limitation, power to vote) of more than 50% of the
outstanding shares of the Company's voting stock (based upon voting power, no
later than (a) ten days after the approval by the shareholders of the Company
of such merger, consolidation, reorganization, sale, lease or exchange of
assets or dissolution; (b) thirty days after a change of control of the type
described in Clause (iv), the Committee, acting in its sole discretion without
the consent or approval of any Optionee, shall act to effect one or more of the
following alternatives, which may vary among individual Optionees and which may
vary among Options held by any individual Optionee: (1) accelerate the time at
which Options then outstanding may be exercised so that such Options may be

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exercised in full for a limited period of time on or before a specified date
(before or after such Corporate Change) fixed by the Committee, after which
specified date all unexercised Options and all rights of Optionees thereunder
shall terminate, (2) require the mandatory surrender to the Company by selected
Optionees of some or all of the outstanding Options held by such Optionees
(irrespective of whether such Options are then exercisable under the provisions
of the Plan) as of a date, before or after such Corporate Change, specified by
the Committee, in which event the Committee shall thereupon cancel such Options
and the Company shall pay to each Optionee an amount of cash per share equal to
the excess, if any, of the amount calculated in Subparagraph (d) below (the
"Change of Control Value") of the shares subject to such Option over the
exercise price(s) under such Options for such shares, (3) make such adjustments
to Options then outstanding as the Committee deems appropriate to reflect such
Corporate Change (provided, however, that the Committee may determine in its
sole discretion that no adjustment is necessary to Options then outstanding) or
(4) provide that the number and class of shares of Stock covered by an Option
theretofore granted shall be adjusted so that such Option shall thereafter
cover the number and class of shares of stock or other securities or property
(including, without limitation, cash) to which the Optionee would have been
entitled pursuant to the terms of the agreement of merger, consolidation or
sale of assets and dissolution, the Optionee had been the holder of record of
the number of shares of Stock then covered by such Option.

     (d) For the purposes of clause (2) in Subparagraph (c) above, the "Change
of Control Value" shall equal the amount determined in clause (i), (ii) or
(iii), whichever is applicable, as follows: (i) the per share price offered to
shareholders of the Company in any such merger, consolidation, reorganization,
sale of assets or dissolution transaction, (ii) the price per share offered to
shareholders of the Company in any tender offer or exchange offer whereby a
Corporate Change takes place, or (iii) if such Corporate Change occurs other
than pursuant to a tender or exchange offer, the fair market value per share of
the shares into which such Options being surrendered are exercisable, as
determined by the Committee as of the date determined by the Committee to be
the date of cancellation and surrender of such Options. In the event that the
consideration offered to shareholders of the Company in any transaction
described in this Subparagraph (d) or Subparagraph (c) above consists of
anything other than cash, the Committee shall determine the fair cash
equivalent of the portion of the consideration offered which is other than cash.

     (e) Any adjustment provided for in Subparagraphs (b) or (c) above shall be
subject to any required shareholder action.

     (f) Except as hereinbefore expressly provided, the issuance by the Company
of shares of stock of any class or securities convertible into shares of stock
of any class, for cash, property, labor or services, upon direct sale, 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, and in any case whether or not for fair

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value, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number of shares of Stock subject to Options theretofore granted
or the purchase price per share.

     (g) Notwithstanding anything else herein to the contrary, if the Company
shall not be the surviving entity in any merger, consolidation or other
reorganization (or survives only as a subsidiary of an entity) and such merger,
consolidation or other reorganization is to be accounted for as a pooling of
interests then the time at which all Options then outstanding may be exercised
shall be automatically accelerated and all such Options shall become exercisable
in full at the effective time of such merger, consolidation or reorganization."

IX.  AMENDMENT OR TERMINATION OF THE PLAN

     The Board in its discretion may terminate the Plan at any time with respect
to any shares for which Options have not theretofore been granted.  The Board
shall have the right to alter or amend the Plan or any part thereof from time to
time; provided, that no change in any Option theretofore granted may be made
which would impair the rights of the Optionee without the consent of such
Optionee.

X.   SECURITIES LAWS

     The Company shall not be obligated to issue any Stock pursuant to any
Option granted under the Plan at any time when the offering of the shares
covered by such Option have not been registered under the Securities Act of 1933
and such other state and federal laws, rules or regulations as the Company or
the Committee deems applicable and, in the opinion of legal counsel for the
Company, there is no exemption from the registration requirements of such laws,
rules or regulations available for the offering and sale of such shares.

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