Document:

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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is entered into and
effective as of October 4, 1999, by and between Weatherford International, Inc.,
a Delaware corporation (the "Company"), and Mark E. Hopmann (the "Employee").

                              W I T N E S S E T H:

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

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

         NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

         1.  Certain Definitions.

            (a)  "Cause" shall mean:

                  (i) the willful and continued failure of the Employee to
         perform substantially the Employee's duties with the Company or one of
         its affiliates (other than any such failure resulting from incapacity
         due to physical or mental illness), after a written demand for
         substantial performance is delivered to the Employee by the Company
         which specifically identifies the manner in which the Employee has not
         substantially performed the Employee's duties, or

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

               No act, or failure to act, on the part of the Employee shall be
         considered "willful" unless it is done, or omitted to be done, by the
         Employee in bad faith or without reasonable belief that the Employee's
         action or omission was in the best interests of the Company. Any act,
         or failure to act, based upon authority given pursuant to a resolution
         duly adopted by the Board or upon the instructions of the Chief
         Executive Officer or of a senior officer of the Company or based upon
         the advice of counsel for the Company shall be conclusively presumed to
         be done, or omitted to be done, by the Employee in good faith and in
         the best interests of the Company.

            (b)  "Change of Control" shall mean:

                  (i) The acquisition by any individual, entity or group (within
         the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
         Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20 percent or more of either (A) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (B) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote generally
         in the election of directors (the "Outstanding Company Voting
         Securities"); provided, however, that for purposes of this subsection
         (i), the following acquisitions shall not constitute a Change of
         Control:

                      (A) any acquisition directly from the Company,

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                      (B) any acquisition by the Company,

                      (C) any acquisition by any employee benefit plan (or
                  related trust) sponsored or maintained by the Company or any
                  corporation controlled by the Company, or

                      (D) any acquisition by any corporation pursuant to a
                  transaction which complies with clauses (A), (B) and (C) of
                  subsection (iii) of this Section 1(b); or

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

                  (iii) Consummation of a reorganization, merger or
         consolidation or sale or other disposition of all or substantially all
         of the assets of the Company (a "Corporate Transaction") in each case,
         unless, following such Corporate Transaction, (A) all or substantially
         all of the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Corporate
         Transaction beneficially own, directly or indirectly, more than 60
         percent of, respectively, the then outstanding shares of common stock
         and the combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Corporate Transaction
         (including, without limitation, a corporation which as a result of such
         transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Corporate Transaction, of the Outstanding Company Common
         Stock and the Outstanding Company Voting Securities, as the case may
         be, (B) no Person (excluding any corporation resulting from such
         Corporate Transaction or any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Corporate
         Transaction) beneficially owns, directly or indirectly, 20 percent or
         more of, respectively, the then outstanding shares of common stock of
         the corporation resulting from such Corporate Transaction or the
         combined voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Corporate Transaction and (C) at least a majority of the members of
         the board of directors of the corporation resulting from such Corporate
         Transaction were members of the Incumbent Board at the time of the
         execution of the initial agreement, or of the action of the Board,
         providing for such Corporate Transaction; or

                  (iv) Approval by the stockholders of the Company of a complete
         liquidation or dissolution of the Company.

         (c) "Good Reason" shall mean the occurrence of any of the following
after a Change of Control of the Company:

                  (i) the assignment to the Employee of any duties inconsistent
         in any material respect with the Employee's position (including status,
         offices, titles and reporting requirements), authority, duties or
         responsibilities as contemplated by Section 3(a) of this Agreement, or
         any other

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         action by the Company which results in a diminution in such position,
         authority, duties or responsibilities, excluding for this purpose an
         isolated, insubstantial and inadvertent action not taken in bad faith
         and which is remedied by the Company promptly after receipt of notice
         thereof given by the Employee;

                  (ii) any failure by the Company to comply with any of the
         provisions of Section 3(b) of this Agreement, other than an isolated,
         insubstantial and inadvertent failure not occurring in bad faith and
         which is remedied by the Company promptly after receipt of notice
         thereof given by the Employee;

                  (iii) the Company's requiring the Employee to be based at any
         office or location other than as provided in Section 3(a) hereof or the
         Company's requiring the Employee to travel on Company business to a
         substantially greater extent than required to perform the Employee's
         duties hereunder;

                  (iv) any purported termination by the Company of the
         Employee's employment otherwise than as expressly permitted by this
         Agreement; or

                  (v) any failure by the Company to comply with and satisfy
         Section 10(c) of this Agreement.

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

     2.   Employment Period. The Company hereby agrees that the Company or an
affiliated company will continue the Employee in its employ, and the Employee
hereby agrees to remain in the employ of the Company or an affiliate subject to
the terms and conditions of this Agreement, for the period commencing on the
date hereof and ending on October 31, 2001 (the "Employment Period"); provided,
however, if there is a Change of Control prior to October 31, 2001, the
Employment Period shall be extended for two years after the Change of Control.

     3.   Terms of Employment.

         (a) Position and Duties. The Employee shall serve as President of the
Company's Completion Division or such other principal division of the Company to
which the Employee may be assigned. During the Employment Period, the Employee's
services shall be performed principally at the Company's principal executive
offices in Houston, Texas or other locations less than 35 miles from such
principal executive offices; provided, however, the Employee may be required to
travel on a reasonable basis in a manner consistent with the duties of the
Employee.

         (b) Compensation.

                  (i) Base Salary. During the Employment Period, the Employee
     shall receive an annual base salary of $200,004 ("Annual Base Salary"),
     which shall be paid at a monthly rate. During the Employment Period, the
     Annual Base Salary shall be reviewed from time to time on the same basis as
     similarly situated employees; provided, however, that a salary increase
     shall not necessarily be awarded as a result of such review. Any increase
     in Annual Base Salary may not serve to limit or reduce any other obligation
     to the Employee under this Agreement. Annual Base Salary shall not be
     reduced after any such increase. The term Annual Base Salary as utilized in
     this Agreement shall refer to Annual Base Salary as so increased.

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               (ii) Annual Bonus. The Employee shall be eligible for an annual
     bonus for each fiscal year ending during the Employment Period on the same
     basis as other similarly situated employees under the Company's annual
     incentive programs.

               (iii) Incentive, Savings and Retirement Plans. During the
     Employment Period, the Employee shall be entitled to participate in all
     incentive, savings and retirement plans, practices, policies and programs
     applicable generally to similarly situated employees of the Company and its
     affiliated companies. As used in this Agreement, the term "affiliated
     companies" shall include any company controlled by, controlling or under
     common control with the Company.

               (iv) Welfare Benefit Plans. During the Employment Period, the
     Employee and/or the Employee's family, as the case may be, shall be
     eligible to participate in and shall receive all benefits under welfare
     benefit plans, practices, policies and programs provided by the Company and
     its affiliated companies (including, without limitation, medical,
     prescription, dental, disability, salary continuance, employee life, group
     life, accidental death and travel accident insurance plans and programs) to
     the extent applicable generally to similarly situated employees of the
     Company and its affiliated companies. The Employee understands and agrees
     that he will be responsible for all applicable employee contributions under
     such plans, practices, policies and programs.

               (v) Fringe Benefits. During the Employment Period, the Employee
     shall be entitled to (A) a $600 per month car allowance and (B) such other
     fringe benefits as in effect generally at any time thereafter with respect
     to similarly situated employees of the Company and its affiliated
     companies.

               (vi) Vacation. During the Employment Period, the Employee shall
     be entitled to at least 3 weeks paid vacation.

               (vii) Deferred Compensation Plan. During the Employment Period,
     the Employee shall be entitled to continue to participate in any deferred
     compensation or similar plans in which similarly situated employees
     participate.

     4.   Termination of Employment.

         (a) Death or Disability. The Employee's employment shall terminate
automatically upon the Employee's death during the Employment Period. If the
Company determines in good faith that the Disability of the Employee has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Employee written notice in accordance with
Section 11(b) of this Agreement of its intention to terminate the Employee's
employment. In such event, the Employee's employment with the Company shall
terminate effective 30 days after receipt of such notice by the Employee (the
"Disability Effective Date"), provided that within the 30-day period after such
receipt, the Employee shall not have returned to full-time performance of the
Employee's duties. For purposes of this Agreement, "Disability" shall mean the
absence of the Employee from the Employee's duties with the Company on a
full-time basis for 180 calendar days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Employee or the
Employee's legal representative.

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

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         (c) Good Reason. Following a Change of Control during the Employment
Period, the Employee's employment may be terminated by the Employee during the
Employment Period for Good Reason upon 30 days prior written notice as long as
the cause of such Good Reason is not remedied.

         (d) Without Cause. The Company may terminate the Employee's employment
during the Employment Period at any time without Cause subject to the Company's
obligation to pay to the Employee the compensation provided for in Section 5(e),
if such termination was not preceded by a Change of Control of the Company, or
Section 5(f), if such termination was preceded by a Change of Control of the
Company.

         (e) By Employee other than Good Reason. The Employee may terminate the
Employee's employment with the Company for any reason other than for Good Reason
upon 30 days prior written notice to the Company.

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

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

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

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

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

               (iv) if the Employee's employment is terminated by the Employee,
     the Date of Termination shall be the earlier to occur of (A) the last day
     that the Employee reports to work for the Company and (B) the date which is
     30 days from the Employee's notice of termination.

     5.   Obligations of the Company Upon Termination.

          (a) Death. If the Employee's employment is terminated by reason of the
Employee's death during the Employment Period, the Employee's employment shall
terminate automatically without further obligations to the Employee's legal
representatives under this Agreement, other than for payment of Accrued
Obligations (as defined below) and the rights provided in Section 6. Accrued
Obligations shall be paid to the

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Employee's estate or beneficiaries, as applicable, in a lump sum in cash within
30 days after the Date of Termination.

         (b) Disability. If the Employee's employment is terminated by reason of
the Employee's Disability during the Employment Period, the Employee's
employment shall terminate without further obligations to the Employee under
this Agreement, other than for payment of Accrued Obligations and the rights
provided in Section 6. Accrued Obligations shall be paid to the Employee in a
lump sum in cash within 30 days after the Date of Termination.

         (c) Cause. If the Employee's employment is terminated for Cause during
the Employment Period, the Employee's employment shall terminate without further
obligations to the Employee, other than the obligation to pay to the Employee
his Annual Base Salary through the Date of Termination and the rights provided
in Section 6.

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

         (e) Other than For Cause, Death or Disability Not Preceded by Change of
Control. If, during the Employment Period, the Company terminates the Employee's
employment other than for Cause, death or Disability and such termination was
not preceded by a Change of Control of the Company during the Employment Period:

               (i) The Company shall pay to the Employee in a lump sum in cash
     within 30 days after the Date of Termination the sum of the Employee's
     Annual Base Salary through the Date of Termination to the extent not
     theretofore paid plus any expense reimbursements payable in accordance with
     the Company's policies (the sum of the amounts described in this clause (i)
     shall be hereinafter referred to as the "Accrued Obligations");

               (ii) The Company shall continue to pay to the Employee the then
     current Annual Base Salary of the Employee through the longer of (A)
     October 31, 2001 and (B) one year following the Date of Termination, on the
     same basis that such Annual Base Salary was paid prior to the termination
     of employment; and

               (iii) Each stock option granted to Employee under the Weatherford
     International, Inc. 1998 Employee Stock Option Plan that is not fully
     vested on the Date of Termination will be exercisable for a number of
     shares equal to (A) the number of shares subject to such option multiplied
     by (B) a fraction, the numerator of which is the number of full months in
     the period commencing on the date of grant of the option and ending on the
     Date of Termination, and the denominator of which is 36.

         (f) Good Reason or Other than For Cause, Death or Disability in the
Event of a Change of Control. If, during the Employment Period, the Company
terminates the Employee's employment other than for Cause, death or Disability,
or the Employee terminates employment for Good Reason, and such termination was
preceded by a Change of Control of the Company during the Employment Period:

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                    (i) 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:

                         (A) the sum of (1) the Employee's Annual Base Salary
          through the Date of Termination to the extent not theretofore paid,
          (2) the product of (x) the higher of (I) the highest Annual Bonus
          received by the Employee over the preceding three year period and (II)
          the Annual Bonus that would be payable in respect of the current
          fiscal year, if any (such higher amount being referred to as the
          "Highest Annual Bonus") and (y) a fraction, the numerator of which is
          the number of days in the current fiscal year through the Date of
          Termination, and the denominator of which is 365, and (3) any
          compensation previously deferred by the Employee under a plan
          sponsored by the Company (together with any accrued interest or
          earnings thereon), and any accrued vacation pay, in each case to the
          extent not theretofore paid;

                         (B) an amount equal to two times the sum of (i) the
          then current Annual Base Salary of the Employee and (ii) the Highest
          Annual Bonus;

                         (C) an amount equal to (1) the total of the employer
          basic and matching contributions credited to the Employee under the
          Company's 401(k) Savings Plan (the "401(k) Plan") and any other
          deferred compensation plan during the 12-month period immediately
          preceding the month of the Employee's Date of Termination multiplied
          by (2) a fraction, the numerator of which is the number of days from
          the Date of Termination through the then scheduled expiration of the
          Employment Period, and the denominator of which is 365, such amount to
          be grossed up so that the amount the Employee actually receives after
          payment of any federal or state taxes payable thereon equals the
          amount first described above; and

                         (D) the total amount of all other fringe benefits
          received by Employee on an annualized basis multiplied by a fraction,
          the numerator of which is the number of days from the Date of
          Termination through the then scheduled expiration of the Employment
          Period, and the denominator of which is 365.

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

                    (iii) All benefits and amounts under the Company's deferred
     compensation plan and the 401(k) Plan and any other similar plans,
     including any stock options held by the Employee, not already vested shall
     be 100% vested.

                    (iv) To the extent not theretofore paid or provided, the
     Company shall timely pay or provide to the Employee any other amounts or
     benefits required to be paid or provided or which

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     the Employee is eligible to receive under any plan, program, policy or
     practice or contract or agreement of the Company and its affiliated
     companies.

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

     7. Full Settlement.

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

         (b) No Mitigation Required. In no event shall the Employee be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Employee under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not the Employee obtains other
employment.

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

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     8.   Certain Additional Payments by the Company.

         (a) Anything in this Agreement to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any payment
or distribution by the Company to or for the benefit of the Employee (whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments
required under this Section 8) (a "Payment") would be subject to the excise tax
imposed by Section 4999 of the Code or any interest or penalties are incurred by
the Employee with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Employee shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Employee of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing
provisions of this Section 8(a), if it shall be determined that the Employee is
entitled to a Gross-Up Payment, but that the Employee, after taking into account
the Payments and the Gross-Up Payment, would not receive a net after-tax benefit
of at least $1,000 (taking into account both income taxes and any Excise Tax) as
compared to the net after-tax proceeds to the Employee resulting from an
elimination of the Gross-Up Payment and a reduction of the Payments, in the
aggregate, to an amount (the "Reduced Amount") such that the receipt of Payments
would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to
the Employee and the Payments, in the aggregate, shall be reduced to the Reduced
Amount.

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

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

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date that any payment of taxes with respect to such claim is due). If the
Company notifies the Employee in writing prior to the expiration of such period
that it desires to contest such claim, the Employee shall:

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

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

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

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

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

     9. Confidential Information. The Employee shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by the Employee
during

                                       10
<PAGE>   11

the Employee's employment by the Company or any of its affiliated companies,
provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Employee or representatives of the Employee
in violation of this Agreement). After termination of the Employee's employment
with the Company, the Employee shall not, without the prior written consent of
the Company or as may otherwise be required by law or legal process, communicate
or divulge any such information, knowledge or data to anyone other than the
Company and those designated by it. The Employee shall assign to the Company all
patents and intellectual property developed, conceived or invented alone by him
or with others at any time during which the Employee was employed by the Company
or any of its affiliates.

     10.  Successors.

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

         (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

         (c) The Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
As used in this Agreement, "Company" shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

     11.  Miscellaneous.

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

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

          If to the Employee:                Mark E. Hopmann
                                             Rt. 1, Box 258
                                             Alvin, Texas 77511

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

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

                                       11
<PAGE>   12

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

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

         (e) The Employee's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Employee or the Company may have hereunder shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

                                       12
<PAGE>   13

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

                                   /s/ Mark E. Hopmann
                                   --------------------------------------------
                                                  Mark E. Hopmann

                                  WEATHERFORD INTERNATIONAL, INC.

                                  By: /s/ Curtis W. Huff
                                      -----------------------------------------
                                                  Curtis W. Huff
                                      Senior Vice President and General Counsel

                                       13
<PAGE>   14
                              EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement") is entered into and effective
as of October 4, 1999, by and between Weatherford International, Inc., a
Delaware corporation (the "Company"), and Gary L. Warren (the "Employee").

                              W I T N E S S E T H:

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

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

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1.   Certain Definitions.

          (a)  "Cause" shall mean:

               (i)  the willful and continued failure of the Employee to perform
substantially the Employee's duties with the Company or one of its affiliates
(other than any such failure resulting from incapacity due to physical or mental
illness), after a written demand for substantial performance is delivered to the
Employee by the Company which specifically identifies the manner in which the
Employee has not substantially performed the Employee's duties, or

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

          No act, or failure to act, on the part of the Employee shall be
considered "willful" unless it is done, or omitted to be done, by the Employee
in bad faith or without reasonable belief that the Employee's action or omission
was in the best interests of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or of a senior officer of the
Company or based upon the advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by the Employee in good
faith and in the best interests of the Company.

          (b)  "Change of Control" shall mean:

               (i)  The acquisition by any individual, entity or group (within
     the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
     of 1934, as amended (the "Exchange Act")) (a "Person") of beneficial
     ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
     Act) of 20 percent or more of either (A) the then outstanding shares of
     common stock of the Company (the "Outstanding Company Common Stock") or (B)
     the combined voting power of the then outstanding voting securities of the
     Company entitled to vote generally in the election of directors (the
     "Outstanding Company Voting Securities"); provided, however, that for
     purposes of this subsection (i), the following acquisitions shall not
     constitute a Change of Control:

                    (A)  any acquisition directly from the Company,

<PAGE>   15

                    (B)  any acquisition by the Company,

                    (C)  any acquisition by any employee benefit plan (or
          related trust) sponsored or maintained by the Company or any
          corporation controlled by the Company, or

                    (D)  any acquisition by any corporation pursuant to a
          transaction which complies with clauses (A), (B) and (C) of subsection
          (iii) of this Section 1(b); or

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

               (iii) Consummation of a reorganization, merger or consolidation
     or sale or other disposition of all or substantially all of the assets of
     the Company (a "Corporate Transaction") in each case, unless, following
     such Corporate Transaction, (A) all or substantially all of the individuals
     and entities who were the beneficial owners, respectively, of the
     Outstanding Company Common Stock and Outstanding Company Voting Securities
     immediately prior to such Corporate Transaction beneficially own, directly
     or indirectly, more than 60 percent of, respectively, the then outstanding
     shares of common stock and the combined voting power of the then
     outstanding voting securities entitled to vote generally in the election of
     directors, as the case may be, of the corporation resulting from such
     Corporate Transaction (including, without limitation, a corporation which
     as a result of such transaction owns the Company or all or substantially
     all of the Company's assets either directly or through one or more
     subsidiaries) in substantially the same proportions as their ownership,
     immediately prior to such Corporate Transaction, of the Outstanding Company
     Common Stock and the Outstanding Company Voting Securities, as the case may
     be, (B) no Person (excluding any corporation resulting from such Corporate
     Transaction or any employee benefit plan (or related trust) of the Company
     or such corporation resulting from such Corporate Transaction) beneficially
     owns, directly or indirectly, 20 percent or more of, respectively, the then
     outstanding shares of common stock of the corporation resulting from such
     Corporate Transaction or the combined voting power of the then outstanding
     voting securities of such corporation except to the extent that such
     ownership existed prior to the Corporate Transaction and (C) at least a
     majority of the members of the board of directors of the corporation
     resulting from such Corporate Transaction were members of the Incumbent
     Board at the time of the execution of the initial agreement, or of the
     action of the Board, providing for such Corporate Transaction; or

               (iv) Approval by the stockholders of the Company of a complete
     liquidation or dissolution of the Company.

          (c)  "Good Reason" shall mean the occurrence of any of the following
after a Change of Control of the Company:

               (i)  the assignment to the Employee of any duties inconsistent in
     any material respect with the Employee's position (including status,
     offices, titles and reporting requirements), authority, duties or
     responsibilities as contemplated by Section 3(a) of this Agreement, or any
     other

                                       2
<PAGE>   16

     action by the Company which results in a diminution in such position,
     authority, duties or responsibilities, excluding for this purpose an
     isolated, insubstantial and inadvertent action not taken in bad faith and
     which is remedied by the Company promptly after receipt of notice thereof
     given by the Employee;

               (ii) any failure by the Company to comply with any of the
     provisions of Section 3(b) of this Agreement, other than an isolated,
     insubstantial and inadvertent failure not occurring in bad faith and which
     is remedied by the Company promptly after receipt of notice thereof given
     by the Employee;

               (iii) the Company's requiring the Employee to be based at any
     office or location other than as provided in Section 3(a) hereof or the
     Company's requiring the Employee to travel on Company business to a
     substantially greater extent than required to perform the Employee's duties
     hereunder;

               (iv) any purported termination by the Company of the Employee's
     employment otherwise than as expressly permitted by this Agreement; or

               (v)  any failure by the Company to comply with and satisfy
     Section 10(c) of this Agreement.

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

     2.   Employment Period. The Company hereby agrees that the Company or an
affiliated company will continue the Employee in its employ, and the Employee
hereby agrees to remain in the employ of the Company or an affiliate subject to
the terms and conditions of this Agreement, for the period commencing on the
date hereof and ending on October 31, 2001 (the "Employment Period"); provided,
however, if there is a Change of Control prior to October 31, 2001, the
Employment Period shall be extended for two years after the Change of Control.

     3.   Terms of Employment.

          (a)  Position and Duties. The Employee shall serve as President of the
Company's Drilling and Intervention Services Division or such other principal
division of the Company to which the Employee may be assigned. During the
Employment Period, the Employee's services shall be performed principally at the
Company's principal executive offices in Houston, Texas or other locations less
than 35 miles from such principal executive offices; provided, however, the
Employee may be required to travel on a reasonable basis in a manner consistent
with the duties of the Employee.

          (b)  Compensation.

               (i)  Base Salary. During the Employment Period, the Employee
     shall receive an annual base salary of $225,000 ("Annual Base Salary"),
     which shall be paid at a monthly rate. During the Employment Period, the
     Annual Base Salary shall be reviewed from time to time on the same basis as
     similarly situated employees; provided, however, that a salary increase
     shall not necessarily be awarded as a result of such review. Any increase
     in Annual Base Salary may not serve to limit or reduce any other obligation
     to the Employee under this Agreement. Annual Base Salary shall not be
     reduced after any such increase. The term Annual Base Salary as utilized in
     this Agreement shall refer to Annual Base Salary as so increased.

                                       3
<PAGE>   17

               (ii) Annual Bonus. The Employee shall be eligible for an annual
     bonus for each fiscal year ending during the Employment Period on the same
     basis as other similarly situated employees under the Company's annual
     incentive programs.

               (iii) Incentive, Savings and Retirement Plans. During the
     Employment Period, the Employee shall be entitled to participate in all
     incentive, savings and retirement plans, practices, policies and programs
     applicable generally to similarly situated employees of the Company and its
     affiliated companies. As used in this Agreement, the term "affiliated
     companies" shall include any company controlled by, controlling or under
     common control with the Company.

               (iv) Welfare Benefit Plans. During the Employment Period, the
     Employee and/or the Employee's family, as the case may be, shall be
     eligible to participate in and shall receive all benefits under welfare
     benefit plans, practices, policies and programs provided by the Company and
     its affiliated companies (including, without limitation, medical,
     prescription, dental, disability, salary continuance, employee life, group
     life, accidental death and travel accident insurance plans and programs) to
     the extent applicable generally to similarly situated employees of the
     Company and its affiliated companies. The Employee understands and agrees
     that he will be responsible for all applicable employee contributions under
     such plans, practices, policies and programs.

               (v)  Fringe Benefits. During the Employment Period, the Employee
     shall be entitled to (A) a $600 per month car allowance and (B) such other
     fringe benefits as in effect generally at any time thereafter with respect
     to similarly situated employees of the Company and its affiliated
     companies.

               (vi) Vacation. During the Employment Period, the Employee shall
     be entitled to at least 3 weeks paid vacation.

               (vii) Deferred Compensation Plan. During the Employment Period,
     the Employee shall be entitled to continue to participate in any deferred
     compensation or similar plans in which similarly situated employees
     participate.

          (c)  Termination of Prior Agreement. The Employee acknowledges and
agrees that this Agreement is being executed in replacement of the Employee's
existing Change of Control Agreement. As a result, the Employee and the Company
agree that the Change of Control Agreement dated as of August 16, 1996, between
the Employee and Weatherford Enterra, Inc., is hereby terminated and of no
further force and effect.

     4.   Termination of Employment.

          (a)  Death or Disability. The Employee's employment shall terminate
automatically upon the Employee's death during the Employment Period. If the
Company determines in good faith that the Disability of the Employee has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Employee written notice in accordance with
Section 11(b) of this Agreement of its intention to terminate the Employee's
employment. In such event, the Employee's employment with the Company shall
terminate effective 30 days after receipt of such notice by the Employee (the
"Disability Effective Date"), provided that within the 30-day period after such
receipt, the Employee shall not have returned to full-time performance of the
Employee's duties. For purposes of this Agreement, "Disability" shall mean the
absence of the Employee from the Employee's duties with the Company on a
full-time basis for 180 calendar days as a result of incapacity due to mental or
physical illness which is determined

                                       4
<PAGE>   18

to be total and permanent by a physician selected by the Company or its insurers
and acceptable to the Employee or the Employee's legal representative.

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

          (c)  Good Reason. Following a Change of Control during the Employment
Period, the Employee's employment may be terminated by the Employee during the
Employment Period for Good Reason upon 30 days prior written notice as long as
the cause of such Good Reason is not remedied.

          (d)  Without Cause. The Company may terminate the Employee's
employment during the Employment Period at any time without Cause subject to the
Company's obligation to pay the Employee the compensation provided for in
Section 5(e), if such termination was not preceded by a Change of Control of the
Company, or Section 5(f), if such termination was preceded by a Change of
Control of the Company.

          (e)  By Employee other than for Good Reason. The Employee may
terminate the Employee's employment with the Company for any reason other than
for Good Reason upon 30 days prior written notice to the Company.

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

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

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

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

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

               (iv) if the Employee's employment is terminated by the Employee,
     the Date of Termination shall be the earlier to occur of (A) the last day
     that the Employee reports to work for the Company and (B) the date which is
     30 days from the Employee's notice of termination.

     5.   Obligations of the Company Upon Termination.

                                       5
<PAGE>   19

          (a)  Death. If the Employee's employment is terminated by reason of
the Employee's death during the Employment Period, the Employee's employment
shall terminate automatically without further obligations to the Employee's
legal representatives under this Agreement, other than for payment of Accrued
Obligations (as defined below) and the rights provided in Section 6. Accrued
Obligations shall be paid to the Employee's estate or beneficiaries, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.

          (b)  Disability. If the Employee's employment is terminated by reason
of the Employee's Disability during the Employment Period, the Employee's
employment shall terminate without further obligations to the Employee under
this Agreement, other than for payment of Accrued Obligations and the rights
provided in Section 6. Accrued Obligations shall be paid to the Employee in a
lump sum in cash within 30 days after the Date of Termination.

          (c)  Cause. If the Employee's employment is terminated for Cause
during the Employment Period, the Employee's employment shall terminate without
further obligations to the Employee, other than the obligation to pay to the
Employee his Annual Base Salary through the Date of Termination and the rights
provided in Section 6.

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

          (e)  Other than For Cause, Death or Disability Not Preceded by a
Change of Control. If, during the Employment Period, the Company terminates the
Employee's employment other than for Cause, death or Disability and such
termination was not preceded by a Change of Control of the company during the
Employment Period:

               (i)  The Company shall pay to the Employee in a lump sum in cash
     within 30 days after the Date of Termination the sum of the Employee's
     Annual Base Salary through the Date of Termination to the extent not
     theretofore paid plus any expense reimbursements payable in accordance with
     the Company's policies (the sum of the amounts described in this clause (i)
     shall be hereinafter referred to as the "Accrued Obligations");

               (ii) The Company shall continue to pay to the Employee the then
     current Annual Base Salary of the Employee through the longer of (A)
     October 31, 2001 and (B) one year following the Date of Termination, on the
     same basis that such Annual Base Salary was paid prior to the termination
     of employment; and

               (iii) Each stock option granted to Employee under the Weatherford
     International, Inc. 1998 Employee Stock Option Plan that is not fully
     vested on the Date of Termination will be exercisable for a number of
     shares equal to (A) the number of shares subject to such option multiplied
     by (B) a fraction, the numerator of which is the number of full months in
     the period commencing on the date of grant of the option and ending on the
     Date of Termination, and the denominator of which is 36.

          (f)  Good Reason or Other than For Cause, Death or Disability in the
Event of a Change of Control. If, during the Employment Period, the Company
terminates the Employee's employment other than

                                       6
<PAGE>   20

for Cause, death or Disability, or the Employee terminates employment for Good
Reason, and such termination was preceded by a Change of Control of the Company
during the Employment Period:

               (i)  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:

                    (A)  the sum of (1) the Employee's Annual Base Salary
          through the Date of Termination to the extent not theretofore paid,
          (2) the product of (x) the higher of (I) the highest Annual Bonus
          received by the Employee over the preceding three year period and (II)
          the Annual Bonus that would be payable in respect of the current
          fiscal year, if any (such higher amount being referred to as the
          "Highest Annual Bonus") and (y) a fraction, the numerator of which is
          the number of days in the current fiscal year through the Date of
          Termination, and the denominator of which is 365, and (3) any
          compensation previously deferred by the Employee under a plan
          sponsored by the Company (together with any accrued interest or
          earnings thereon), and any accrued vacation pay, in each case to the
          extent not theretofore paid;

                    (B)  an amount equal to two times the sum of (i) the then
          current Annual Base Salary of the Employee and (ii) the Highest Annual
          Bonus;

                    (C)  an amount equal to (1) the total of the employer basic
          and matching contributions credited to the Employee under the
          Company's 401(k) Savings Plan (the "401(k) Plan") and any other
          deferred compensation plan during the 12-month period immediately
          preceding the month of the Employee's Date of Termination multiplied
          by (2) a fraction, the numerator of which is the number of days from
          the Date of Termination through the then scheduled expiration of the
          Employment Period, and the denominator of which is 365, such amount to
          be grossed up so that the amount the Employee actually receives after
          payment of any federal or state taxes payable thereon equals the
          amount first described above; and

                    (D)  the total amount of all other fringe benefits received
          by Employee on an annualized basis multiplied by a fraction, the
          numerator of which is the number of days from the Date of Termination
          through the then scheduled expiration of the Employment Period, and
          the denominator of which is 365.

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

               (iii) All benefits and amounts under the Company's deferred
     compensation plan and the 401(k) Plan and any other similar plans,
     including any stock options held by the Employee, not already vested shall
     be 100% vested.

                                       7
<PAGE>   21

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

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

     7.   Full Settlement.

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

          (b)  No Mitigation Required. In no event shall the Employee be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Employee under any of the provisions of this
Agreement and such amounts shall not be reduced whether or not the Employee
obtains other employment.

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

                                       8
<PAGE>   22

     8.   Certain Additional Payments by the Company.

          (a)  Anything in this Agreement to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any payment
or distribution by the Company to or for the benefit of the Employee (whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments
required under this Section 8) (a "Payment") would be subject to the excise tax
imposed by Section 4999 of the Code or any interest or penalties are incurred by
the Employee with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Employee shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Employee of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing
provisions of this Section 8(a), if it shall be determined that the Employee is
entitled to a Gross-Up Payment, but that the Employee, after taking into account
the Payments and the Gross-Up Payment, would not receive a net after-tax benefit
of at least $1,000 (taking into account both income taxes and any Excise Tax) as
compared to the net after-tax proceeds to the Employee resulting from an
elimination of the Gross-Up Payment and a reduction of the Payments, in the
aggregate, to an amount (the "Reduced Amount") such that the receipt of Payments
would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to
the Employee and the Payments, in the aggregate, shall be reduced to the Reduced
Amount.

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

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

                                       9
<PAGE>   23

date that any payment of taxes with respect to such claim is due). If the
Company notifies the Employee in writing prior to the expiration of such period
that it desires to contest such claim, the Employee shall:

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

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

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

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

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

     9.   Confidential Information. The Employee shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by the Employee
during

                                       10
<PAGE>   24

the Employee's employment by the Company or any of its affiliated companies,
provided that it shall not apply to information which is or shall become public
knowledge (other than by acts by the Employee or representatives of the Employee
in violation of this Agreement). After termination of the Employee's employment
with the Company, the Employee shall not, without the prior written consent of
the Company or as may otherwise be required by law or legal process, communicate
or divulge any such information, knowledge or data to anyone other than the
Company and those designated by it. The Employee shall assign to the Company all
patents and intellectual property developed, conceived or invented alone by him
or with others at any time during which the Employee was employed by the Company
or any of its affiliates.

     10.  Successors.

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

          (b)  This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

          (c)  The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

     11.  Miscellaneous.

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

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

          If to the Employee:                Gary L. Warren
                                             1903 Valleria Ct.
                                             Sugar Land, TX 77479

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

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

                                       11
<PAGE>   25

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

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

          (e)  The Employee's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Employee or the Company may have hereunder shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

                                       12
<PAGE>   26

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

                                   /s/ Gary L. Warren
                                   ---------------------------------------------
                                                  Gary L. Warren

                                   WEATHERFORD INTERNATIONAL, INC.

                                   By: /s/ Curtis W. Huff
                                       -----------------------------------------
                                                  Curtis W. Huff
                                       Senior Vice President and General Counsel

                                       13<PAGE>   1

                                                                    EXHIBIT 10.2

                   AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this "Agreement") by and
between Weatherford International, Inc., a Delaware corporation (the "Company"),
and Curtis W. Huff (the "Executive"), dated January 28, 2000.

                              W I T N E S S E T H:

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

     WHEREAS, the Board does not contemplate the termination of the Executive
during the term hereof and the Board and the Executive expect that the Executive
will be retained for at least the three-year period contemplated herein;

     WHEREAS, the Company and the Executive entered into an Employment Agreement
dated March 16, 1998 (the "Employment Agreement");

     WHEREAS, the Company and the Executive desire to amend and restate in its
entirety the Employment Agreement as set out in this Agreement; and

     WHEREAS, to accomplish these objectives, the Board has caused the Company
to enter into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1.   Employment.

         (a) The Company hereby agrees that the Company or an affiliated company
will continue the Executive in its employ, and the Executive hereby agrees to
remain in the employ of the Company or an affiliate subject to the terms and
conditions of this Agreement, during the Employment Period (as defined below).

         (b) The "Employment Period" shall mean the period commencing on the
Effective Date (as defined below) and ending on the third anniversary of the
Effective Date; provided, however, that commencing on the date one year after
the Effective Date, and on each annual anniversary of such date (such date and
each annual anniversary thereof shall be hereinafter referred to as the "Renewal
Date"), unless previously terminated, the Employment Period shall be
automatically extended so as to terminate three year(s) after such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Employment Period shall not be so extended. The
Effective Date shall be June 15, 1998.

<PAGE>   2

     2.   Terms of Employment.

          (a) Position and Duties.

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

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

         (b)  Compensation.

              (i) Base Salary. During the Employment Period, the Executive shall
          receive an annual base salary of $350,000 ("Annual Base Salary"),
          which shall be paid at a monthly rate. During the Employment Period,
          the Annual Base Salary shall be reviewed no more than 12 months after
          the last salary increase awarded to the Executive prior to the date
          hereof and thereafter at least annually; provided, however, that a
          salary increase shall not necessarily be awarded as a result of such
          review. Any increase in Annual Base Salary may not serve to limit or
          reduce any other obligation

                                        2
<PAGE>   3
          to the Executive under this Agreement. Annual Base Salary shall not be
          reduced after any such increase. The term Annual Base Salary as
          utilized in this Agreement shall refer to Annual Base Salary as so
          increased.

              (ii) Annual Bonus. The Executive shall be eligible for an annual
          bonus (the "Annual Bonus") for each fiscal year ending during the
          Employment Period on the same basis as other executive officers under
          the Company's executive officer annual incentive program. Each such
          Annual Bonus shall be paid no later than the end of the third month of
          the fiscal year next following the fiscal year for which the Annual
          Bonus is awarded, unless the Executive shall elect to defer the
          receipt of such Annual Bonus pursuant to a Company sponsored deferred
          compensation plan in effect.

              (iii) Incentive, Savings and Retirement Plans. During the
          Employment Period, the Executive shall be entitled to participate in
          all incentive, savings and retirement plans, practices, policies and
          programs applicable generally to the Executive's peer executives of
          the Company and its affiliated companies, but in no event shall such
          plans, practices, policies and programs provide the Executive with
          incentive opportunities (measured with respect to both regular and
          special incentive opportunities, to the extent, if any, that such
          distinction is applicable), savings opportunities and retirement
          benefit opportunities, in each case, less favorable, in the aggregate,
          than the most favorable of those provided by the Company and its
          affiliated companies for the Executive under such plans, practices,
          policies and programs as in effect on the date hereof. As used in this
          Agreement, the term "affiliated companies" shall include any company
          controlled by, controlling or under common control with the Company.

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

              (v) Expenses. During the Employment Period, the Executive shall be
          entitled to receive prompt reimbursement for all reasonable expenses
          incurred by the Executive in accordance with the most favorable
          policies, practices and procedures

                                        3
<PAGE>   4
          of the Company and its affiliated companies in effect for the
          Executive on the date hereof.

              (vi) Fringe Benefits. During the Employment Period, the Executive
          shall be entitled to fringe benefits (including, without limitation,
          financial planning services, payment of club dues, a car allowance or
          use of an automobile and payment of related expenses, as appropriate)
          in accordance with the most favorable plans, practices, programs and
          policies of the Company in effect on the date hereof.

              (vii) Vacation. During the Employment Period, the Executive shall
          be entitled to paid vacation in accordance with the most favorable
          plans, policies, programs and practices of the Company and its
          affiliated companies in effect for the Executive on the date hereof.

              (viii) Restricted Stock and Options. Effective as of the Effective
          Date, the Executive was granted 75,000 shares of the Company's Common
          Stock, $1.00 par value ("Common Stock"). Such shares are subject to
          four year vesting on the basis of 18,750 shares of Common Stock on
          each anniversary of the Effective Date; provided, however, if the
          employment of the Executive under this Agreement is terminated prior
          to the shares being fully vested for any reason other than by the
          Company for Cause or Disability, the death of the Executive or by the
          Executive for any reason other than for Good Reason, such shares shall
          become vested on the termination date. Until the shares of Common
          Stock so granted are vested, the Executive may not transfer, pledge or
          dispose of the unvested shares. The Executive, however, may vote any
          unvested shares and be entitled to receive any dividends or
          distributions (other than noncash distributions, which shall be
          subject to the same vesting restrictions as the shares of Common Stock
          for which such distributions were received). The Company may also hold
          the unvested shares until they have vested. The Executive may elect to
          deliver shares of Common Stock (valued at their then current market
          price) to the Company in satisfaction of any withholding obligation
          the Company may have on the vesting of such shares. Such shares shall
          be subject to accelerated vesting as provided in Section 4(a). Such
          shares shall also be subject to accelerated vesting on a change of
          control as defined in the Company's form of stock option agreement,
          with the merger on May 27, 1998 of Weatherford Enterra, Inc. with and
          into the Company not resulting in any acceleration of such vesting.
          Effective as of the Effective Date, the Executive also received
          options under the Company's stock option plan to purchase an aggregate
          of 100,000 shares of Common Stock at an exercise price per share equal
          to the closing sale price of a share of Common Stock on the Effective
          Date, which options are subject to three year vesting on the basis of
          one-third of the shares per year, with the merger on May 27, 1998 of
          Weatherford Enterra, Inc. not resulting in any acceleration of such
          vesting. In connection with the Company's spin-off of its Grant
          Prideco drilling products division, the above restricted stock and
          options will be adjusted to represent shares

                                       4
<PAGE>   5
          and options to purchase stock of the Company and Grant Prideco, Inc.
          as provided in the distribution agreement relating to the spin-off.
          For purposes of vesting of such stock and options, the Executive will
          not be required to be employed by Grant Prideco and the employment
          with the Company will be sufficient for purposes of vesting. In
          addition, Executive may for purposes of withholding deliver to the
          Company shares of Grant Prideco common stock to satisfy the
          withholding on the Common Stock.

     3.   Termination of Employment.

         (a) Death or Disability. The Executive's employment shall terminate
automatically upon the Executive's death during the Employment Period. If the
Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Executive written notice in accordance with
Section 10(b) of this Agreement of its intention to terminate the Executive's
employment. In such event, the Executive's employment with the Company shall
terminate effective 30 days after receipt of such notice by the Executive (the
"Disability Effective Date"), provided that within the 30-day period after such
receipt, the Executive shall not have returned to full-time performance of the
Executive's duties. For purposes of this Agreement, "Disability" shall mean the
absence of the Executive from the Executive's duties with the Company on a
full-time basis for 180 calendar days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative.

         (b) Cause. The Company may terminate the Executive's employment during
the Employment Period for Cause. For purposes of this Agreement, "Cause" shall
mean:

              (i) the willful and continued failure of the Executive to perform
         substantially the Executive's duties with the Company or one of its
         affiliates (other than any such failure resulting from incapacity due
         to physical or mental illness), after a written demand for substantial
         performance is delivered to the Executive by the Board or the Chief
         Executive Officer of the Company which specifically identifies the
         manner in which the Board or Chief Executive Officer believes that the
         Executive has not substantially performed the Executive's duties, or

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

     For purposes of this provision, no act, or failure to act, on the part of
the Executive shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer or
of a senior officer

                                       5
<PAGE>   6

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

         (c) Good Reason. The Executive's employment may be terminated by the
Executive during the Employment Period for Good Reason. For purposes of this
Agreement, "Good Reason" shall mean:

              (i) the assignment to the Executive of any duties inconsistent in
         any respect with the Executive's position (including status, offices,
         titles and reporting requirements), authority, duties or
         responsibilities as contemplated by Section 2(a) of this Agreement, or
         any other action by the Company which results in a diminution in such
         position, authority, duties or responsibilities, excluding for this
         purpose an isolated, insubstantial and inadvertent action not taken in
         bad faith and which is remedied by the Company promptly after receipt
         of notice thereof given by the Executive;

              (ii) any failure by the Company to comply with any of the
         provisions of Section 2(b) of this Agreement, other than an isolated,
         insubstantial and inadvertent failure not occurring in bad faith and
         which is remedied by the Company promptly after receipt of notice
         thereof given by the Executive;

              (iii) the Company's requiring the Executive to be based at any
         office or location other than as provided in Section 2(a)(i)(B) hereof
         or the Company's requiring the Executive to travel on Company business
         to a substantially greater extent than required immediately prior to
         the date hereof;

              (iv) any purported termination by the Company of the Executive's
         employment otherwise than as expressly permitted by this Agreement;

              (v) in the event of a merger, consolidation or other business
         combination of the Company in which the Company's securities cease to
         be publicly traded, the assignment to the Executive of any position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities that are not (A) at or with the
         ultimate parent company of the entity surviving or resulting from such
         merger, consolidation or other business combination and (B)
         substantially similar to the

                                       6
<PAGE>   7
         Executive's position (including status, offices, titles and reporting
         requirements), authority, duties and responsibilities as contemplated
         by Section 2(a); or

              (vi) any failure by the Company to comply with and satisfy Section
         9(c) of this Agreement.

     For purposes of this Section 3(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.

         (d) Notice of Termination. Any termination during the Employment Period
by the Company for Cause, or by the Executive for Good Reason, shall be
communicated by Notice of Termination to the other party hereto given in
accordance with Section 10(b) of the Agreement. For purposes of this Agreement,
a "Notice of Termination" means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination date
(which date shall be not more than 30 days after the giving of such notice). The
failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good
Reason or Cause shall not waive any right of the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

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

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

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

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

     4.   Obligations of the Company Upon Termination.

         (a)   Good Reason; Other than For Cause, Death or Disability. If,
during the Employment Period, the Company shall terminate the Executive's
employment other than for Cause, death or Disability, or the Executive shall
terminate employment for Good Reason:

                                       7
<PAGE>   8
              (i) The Company shall pay to the Executive in a lump sum in cash
         within 30 days after the Date of Termination the aggregate of the
         following amounts:

                   (A) the sum of (1) the Executive's Annual Base Salary through
              the Date of Termination to the extent not theretofore paid, (2)
              the product of (x) the higher of (I) the highest Annual Bonus
              received by the Executive over the preceding three year period and
              (II) the Annual Bonus paid or payable, including any bonus or
              portion thereof which has been earned but deferred (and annualized
              for any fiscal year consisting of less than 12 full months or
              during which the Executive was employed for less than 12 full
              months), for the most recently completed fiscal year during the
              Employment Period, if any (such higher amount being referred to as
              the "Highest Annual Bonus", it being agreed that for purposes of
              determining the Highest Annual Bonus, the Executive will be deemed
              to have received a bonus of 100% of his Annual Base Salary for the
              year ended December 31, 1998) and (y) a fraction, the numerator of
              which is the number of days in the current fiscal year through the
              Date of Termination, and the denominator of which is 365, and (3)
              any compensation previously deferred by the Executive under a plan
              sponsored by the Company (together with any accrued interest or
              earnings thereon), and any accrued vacation pay, in each case to
              the extent not theretofore paid (the sum of the amounts described
              in clauses (1), (2) and (3) shall be hereinafter referred to as
              the "Accrued Obligations"), and

                   (B) an amount equal to three times the sum of (i) the then
              current Annual Base Salary of the Executive and (ii) the Highest
              Annual Bonus, and

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

              (ii) For a period of three years from the Executive's Date of
         Termination (the "Remaining Contract Term") or such longer period as
         may be provided by the terms of the appropriate plan, program, practice
         or policy, the Company shall continue benefits to the Executive and/or
         the Executive's family equal to those which would have been provided to
         them in accordance with the plans, programs, practices and policies
         described in Section 2(b)(iv) of this Agreement if the Executive's
         employment had not been terminated; provided, however, that with
         respect to any of such plans, programs, practices or policies requiring
         an employee contribution, the Executive shall continue to pay the
         monthly employee contribution for same, and

                                       8
<PAGE>   9
         provided further, that if the Executive becomes reemployed by another
         employer and is eligible to receive medical or other welfare benefits
         under another employer provided plan, the medical and other welfare
         benefits described herein shall be secondary to those provided under
         such other plan during such applicable period of eligibility;

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

              (iv) With respect to all options to purchase Common Stock held by
         the Executive pursuant to a Company stock option plan on or prior to
         the Date of Termination, irrespective of whether such options are then
         exercisable, the Executive shall have the right, during the 60-day
         period after the Date of Termination, to elect to surrender all or part
         of such options in exchange for a cash payment by the Company to the
         Executive in an amount equal to the number of shares of Common Stock
         subject to the Executive's option multiplied by the difference between
         (x) and (y) where (x) equals the purchase price per share covered by
         the option and (y) equals the highest reported sale price of a share of
         Common Stock in any transaction reported on the New York Stock Exchange
         during the 60-day period prior to and including the Executive's Date of
         Termination. Such cash payments shall be made within 30 days after the
         date of the Executive's election; provided, however, that if the
         Executive's Date of Termination is within six months after the date of
         grant of a particular option held by the Executive and the Executive is
         subject to Section 16(b) of the Securities Exchange Act of 1934, as
         amended, any cash payments related thereto shall be made on the date
         which is six months and one day after the date of grant of such option
         to the extent necessary to prevent the imposition of the disgorgement
         provisions under Section 16(b). Notwithstanding the foregoing, if any
         right granted pursuant to the foregoing would make any change of
         control transaction ineligible for pooling of interests accounting
         treatment under APB No. 16 that but for this Section 4(a)(iv) would
         otherwise be eligible for such accounting treatment, the Executive
         shall receive in substitution for the cash payment a number of shares
         of Common Stock determined by dividing the amount of cash that would
         otherwise be payable to the Executive hereunder by the average closing
         sales price of the Common Stock, as reported by the New York Stock
         Exchange, for the ten trading days immediately prior to the date such
         payment is due to be made (rounding up to the nearest whole number),
         provided that any such shares of Common Stock so granted to the
         Executive shall be registered under the Securities Act of 1933, as
         amended; any options outstanding as of the Date of Termination and not
         then exercisable shall become fully exercisable as of the Executive's
         Date of Termination, and to the extent the Executive does not elect to
         surrender same for a cash payment (or the equivalent number of shares
         of Common Stock) as provided above, such options shall remain

                                       9
<PAGE>   10
         exercisable for one year after the Executive's Date of Termination or
         until the stated expiration of the stated term thereof, whichever is
         longer;

              (v) restrictions applicable to any shares of Common Stock granted
         to the Executive by the Company shall lapse, as of the date of the
         Executive's Date of Termination;

              (vi) All country club memberships, luncheon clubs and other
         memberships which the Company was providing for the Executive's use at
         the time Notice of Termination is given shall, to the extent possible,
         be transferred and assigned to the Executive at no cost to the
         Executive (other than income taxes owed), the cost of transfer, if any,
         to be borne by the Company;

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

              (viii) All benefits under the Company's Executive Deferred
         Compensation Plan and the 401(k) Plan and any other similar plans,
         including any stock options or restricted stock held by the Executive,
         not already vested shall be 100% vested, to the extent such vesting is
         permitted under the Code (as defined below);

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

              (x) The foregoing payments are intended to compensate the
         Executive for a breach of the Company's obligations and place Executive
         in substantially the same position had the employment of the Executive
         not been so terminated as a result of a breach by the Company.

         (b) Death. If Executive's employment is terminated by reason of the
Executive's death during the Employment Period, this Agreement shall terminate
without further obligations to the Executive's legal representatives under this
Agreement, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits. Accrued Obligations shall be paid to the
Executive's estate or beneficiaries, as applicable, in a lump sum in cash within
30 days after the Date of Termination. With respect to the provision of Other
Benefits, the term Other Benefits as utilized in this Section 4(b) shall
include, without limitation, and the Executive's estate

                                       10
<PAGE>   11

and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and affiliated companies to
the estates and beneficiaries of the Executive's peer executives of the Company
and such affiliated companies under such plans, programs, practices and policies
relating to death benefits, if any, in effect on the date hereof or, if more
favorable, those in effect on the date of the Executive's death.

         (c) Disability. If the Executive's employment is terminated by reason
of the Executive's Disability during the Employment Period, this Agreement shall
terminate without further obligations to the Executive, other than for payment
of Accrued Obligations and the timely payment or provision of Other Benefits.
Accrued Obligations shall be paid to the Executive in a lump sum in cash within
30 days after the Date of Termination. With respect to the provision of Other
Benefits, the term Other Benefits as utilized in this Section 4(c) shall
include, without limitation, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable benefits generally provided by the Company and its
affiliated companies to the Executive's disabled peer executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, in effect generally on the date hereof or, if
more favorable, those in effect at the time of the Disability.

         (d) Cause; Other Than for Good Reason. If the Executive's employment is
terminated for Cause during the Employment Period, this Agreement shall
terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) his Annual Base Salary through the Date
of Termination, (y) the amount of any compensation previously deferred by the
Executive, and (z) Other Benefits, in each case to the extent theretofore
unpaid. If the Executive voluntarily terminates employment during the Employment
Period, excluding a termination for Good Reason, this Agreement shall terminate
without further obligations to the Executive, other than for Accrued Obligations
and the timely payment or provision of Other Benefits. In such case, all Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days
after the Date of Termination subject to such other options or restrictions as
provided by law.

     5. Other Rights. Except as provided hereinafter, nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, shall
anything herein limit or otherwise affect such rights as the Executive may have
under any contract or agreement with the Company or any of its affiliated
companies. Except as provided hereinafter, amounts which are vested benefits or
which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of
its affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement. It is expressly agreed by the Executive that he shall have no right
to receive, and hereby waives any entitlement to, any severance pay or similar
benefit under any other plan, policy, practice or program of the Company. In
addition, if the Executive has an employment or similar agreement with the
Company at the Date of Termination, he agrees that he shall have the right to
receive all of the benefits provided under this Agreement or such other
agreement, whichever one, in its entirety, the Executive chooses, but not

                                       11
<PAGE>   12

both agreements, and when the Executive has made such election, the other
agreement shall be superseded in its entirety and shall be of no further force
and effect. The Executive also agrees that to the extent he may be eligible for
any severance pay or similar benefit under any laws providing for severance or
termination benefits, such other severance pay or similar benefit shall be
coordinated with the benefits owed hereunder, such that the Executive shall not
receive duplicate benefits.

     6.   Full Settlement.

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

         (b) No Mitigation Required. In no event shall the Executive be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this
Agreement and such amounts shall not be reduced whether or not the Executive
obtains other employment.

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

     7.   Certain Additional Payments by the Company.

         (a) Although this Agreement is not being entered into in connection
with or contingent upon a change of control of the Company, anything in this
Agreement to the contrary notwithstanding and except as set forth below, in the
event it shall be determined that any payment or distribution by the Company to
or for the benefit of the Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section
7) (a "Payment") would be subject to the excise tax imposed by Section 4999 of
the Code or any interest or penalties are incurred by the Executive with respect
to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the "Excise Tax"), then
the Executive shall be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive

                                       12
<PAGE>   13

retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments. Notwithstanding the foregoing provisions of this Section 7(a), if
it shall be determined that the Executive is entitled to a Gross-Up Payment, but
that the Executive, after taking into account the Payments and the Gross-Up
Payment, would not receive a net after-tax benefit of at least $50,000 (taking
into account both income taxes and any Excise Tax) as compared to the net
after-tax proceeds to the Executive resulting from an elimination of the
Gross-Up Payment and a reduction of the Payments, in the aggregate, to an amount
(the "Reduced Amount") such that the receipt of Payments would not give rise to
any Excise Tax, then no Gross-Up Payment shall be made to the Executive and the
Payments, in the aggregate, shall be reduced to the Reduced Amount.

         (b) Subject to the provisions of Section 7(c), all determinations
required to be made under this Section 7, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination shall be made by Arthur
Andersen LLP or, as provided below, such other certified public accounting firm
as may be designated by the Executive (the "Accounting Firm") which shall
provide detailed supporting calculations both to the Company and the Executive
within 15 business days after the receipt of notice from the Executive that
there has been a Payment, or such earlier time as is requested by the Company.
In the event that the Accounting Firm is serving as accountant or auditor for
the individual, entity or group effecting the change of control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined
pursuant to this Section 7, shall be paid by the Company to the Executive within
five days after the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Company should have been made ("Underpayment"), consistent with the
calculations required to be made hereunder. In the event that the Company
exhausts its remedies pursuant to Section 7(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

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

                                       13
<PAGE>   14
              (i) give the Company any information reasonably requested by the
         Company relating to such claim,

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

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

              (iv) permit the Company to participate in any proceedings relating
         to such claims; provided, however, that the Company shall bear and pay
         directly all costs and expenses (including additional interest and
         penalties) incurred in connection with such costs and shall indemnify
         and hold the Executive harmless, on an after-tax basis, for any Excise
         Tax or income tax (including interest and penalties with respect
         thereto) imposed as a result of such representation and payment of
         costs and expenses. Without limitation on the foregoing provisions of
         this Section 7(c), the Company shall control all proceedings taken in
         connection with such contest and, at its sole option, may pursue or
         forego any and all administrative appeals, proceedings, hearings and
         conferences with the taxing authority in respect of such claim and may,
         at its sole option, either direct the Executive to pay the tax claimed
         and sue for a refund or contest the claim in any permissible manner,
         and the Executive agrees to prosecute such contest to determination
         before any administrative tribunal, in a court of initial jurisdiction
         and in one or more appellate courts, as the Company shall determine;
         provided, however, that if the Company directs the Executive to pay
         such claim and sue for a refund, the Company shall advance the amount
         of such payment to the Executive, on an interest-free basis and shall
         indemnify and hold the Executive harmless, on an after-tax basis, from
         any Excise Tax or income tax (including interest or penalties with
         respect thereto) imposed with respect to such advance or with respect
         to any imputed income with respect to such advance; and further
         provided that any extension of the statute of limitations relating to
         payment of taxes for the taxable year of the Executive with respect to
         which such contested amount is claimed to be due is limited solely to
         such contested amount. Furthermore, the Company's control of the
         contest shall be limited to issues with respect to which a Gross-Up
         Payment would be payable hereunder and the Executive shall be entitled
         to settle or contest, as the case may be, any other issues raised by
         the Internal Revenue Service or any other taxing authority.

         (d) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 7(c), the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall (subject to the Company's
complying with the requirements of Section 7(c)) promptly pay to the Company the
amount of such refund (together with any interest paid or

                                       14
<PAGE>   15

credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 7(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

     8.   Confidential Information. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by the Executive
during the Executive's employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall
become public knowledge (other than by acts by the Executive or representatives
of the Executive in violation of this Agreement), information that is developed
by the Executive independently of such information, or knowledge or data or
information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the
Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an
asserted violation of the provisions of this Section 8 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

     9.   Successors.

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

         (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

         (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

                                       15
<PAGE>   16

     10.  Miscellaneous.

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

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

<TABLE>

<S>                                      <C>
                  If to the Executive:   Curtis W. Huff
                                         Weatherford International, Inc.
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027

                  If to the Company:     Weatherford International, Inc.
                                         515 Post Oak Blvd., Suite 600
                                         Houston, Texas 77027
                                         Attention:  Bernard J. Duroc-Danner
</TABLE>

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

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

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

         (e) The Executive's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder, including without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 3(c)(i)-(vi) of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

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

                                       16
<PAGE>   17

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

                                   /s/ Curtis W. Huff
                                   -------------------------------------
                                             Curtis W. Huff

                                   WEATHERFORD INTERNATIONAL, INC.

                                   By /s/ Bernard J. Duroc-Danner
                                      ----------------------------------
                                             Bernard J. Duroc-Danner
                                      Chairman of the Board, President and
                                             Chief Executive Officer

                                       17

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