Exhibit 10.1

STATE OF TEXAS : COUNTY OF HARRIS :

 EMPLOYMENT AGREEMENT

     THIS AGREEMENT, made and entered into effective the 1st day of September,
2004 (the “Effective Date”), by and between BLACK WARRIOR WIRELINE CORP., a
Delaware corporation (hereinafter referred to as the “Employer”), and RON
WHITTER (hereinafter referred to as the “Employee”), as follows:

WITNESSETH:

     WHEREAS, Employer and Employee desire to desire to reduce to writing and
formalize the basis on which Employee will continue to be employed by Employer;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, faithfully to be kept by the parties hereto, it is agreed
as follows:

     1.      Term. The Employer will employ the Employee, and the Employee
agrees to remain in the employ of the Employer, for a period of three (3) years
commencing on the Effective Date.

     2.      Duties. Employee shall serve as the Chief Financial Officer of
Employer, working in an office to be established, at Employer’s expense, by
Employer in the Houston, Texas area. Employee shall work at the direction and
control of the president and officers of Employer. Employee shall devote the
whole of his time during business hours, and at any other time when he is
reasonably needed, for the benefit of the Employer. The Employee shall use his
best efforts to promote the interest and welfare of the Employer at all times.
Any outside employment, consulting or any other active commercial business
activity of any kind is strictly forbidden without written permission of an
Officer of the Company and shall be grounds for immediate termination. Employee
hereby accepts the employment on the terms and conditions as hereinafter set
forth.

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     3.      Compensation. As compensation for his services, the Employee shall
be paid a base salary of$135,000 per year, and, in addition, a one-time signing
bonus of $25,000. On each anniversary date of this Agreement, Employee’s salary
shall be reviewed for possible adjustment in line with the policies and
practices of the managers and officers of Black Warrior Wireline Corp. Employee
shall also receive a monthly car allowance of $750.

     4.      Non-Competition. The Employee agrees that for and during the
duration of his employment he will not directly or indirectly become employed by
or associated with, in any capacity, any other person, firm or corporation which
operates a wireline or directional drilling business in the general business
area of the Employer. It is agreed by the parties hereto that, in the event of
any breach of the non-competition provisions herein, legal remedies available to
the Employer would be inadequate. Therefore, in the event of such breach, the
Employer is specifically authorized to apply to a court of competent
jurisdiction to enjoin any violation of such provision.

     5.      Benefits. The Employee shall be entitled to the same benefits
package as the employees of Black Warrior Wireline Corp. So long as the senior
executives of Employer receive company-paid family health coverage, the Employee
shall receive this benefit.

     6.      Termination.Employee’s employment shall be terminated upon the
happening of any of the following events:

          (i)      At the end of the 3rd year of employment hereunder, unless
extended by mutual agreement of the parties; or

          (ii)      Upon any material breach of the employment relationship,
including the failure of Employee to perform his duties, as reasonably directed
by Employer; or

          (iii)      Upon the death or disability of the Employee; provided
that, for clarification, death or disability shall not be considered a breach of
this agreement; or

          (iv)      Conviction in a court of law of any felony or offense
involving company property; or

          (v)      Violation of any part of the company’s standard policies and
procedures, drug and alcohol policy or any policy letters which may be issued
from time to time.

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Employment Agreement – Ron Whitter – September 1, 2004 Page 6

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     7.      Amendments. This agreement shall not be modified or amended except
by a writing signed by both parties.

     8.      Prior Agreements. This agreement replaces and supersedes any and
all employment agreements, deferred compensation agreements, or employment
arrangements, whether written or oral, between the parties hereto, made at any
time prior to the date hereof.

     9.      Applicable Law. This agreement shall be construed and enforced in
accordance with the laws of the state of Texas.

     10.      Notices. All notices, request, demands, and other communications
hereunder shall be deliverer in writing, by fax or verbal. If in writing shall
be delivered to the following:

  (i) If to the employer, to:                 Black Warrior Wireline Corp.
100 Rosecrest Lane
Columbus, Mississippi 39701
Attn: William L. Jenkins           (ii) If to the employee, to:              
Ron Whitter
6402 Gladehill Drive
Kingwood, TX 77345

 

 

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Employment Agreement – Ron Whitter – September 1, 2004

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     11.      Change of Control. Upon a Change of Control, the Employer shall
pay to the Employee the sum of $125,000 (the “COC Payment”). As used herein, a
Change of Control shall mean any of the following: (i) any person or group of
persons (within the meaning of the Securities Exchange Act of 1934,) shall have
acquired, after the Closing Date, beneficial ownership (within the meaning of
Rule 13d-3 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934,) of 20% or more of the issued and outstanding
shares of capital stock of Company having the right to vote for the election of
Directors of Company under ordinary circumstances; (ii) more than 25% of the
assets of the Company are sold in a transaction or series of transactions
closing within twenty-four (24) months of one another; (iii) the Company shall
merge with any other person or firm; (iv) during any period of twelve
consecutive calendar months, individuals who at the beginning of such period
constituted the Board of Directors of Company (together with any new directors
whose election by the Board of Directors of Company or whose nomination for
election by the Stockholders of Company was approved by a vote of at least
two-thirds of the Directors then still in office who either were Directors at
the beginning of such period or whose election or nomination for election was
previously so approved cease) for any reason other than death or disability to
constitute a majority of the Directors then in office; (v) St. James Capital
Corp. ceases to be the general partner, managing partner or otherwise ceases to
be in control of St. James Capital Partners, LP or SJMB, LLC ceases to be the
general partner, managing partner or otherwise ceases to be in control of SJMB,
LP, (vi) William L. Jenkins ceases to serve in as Chief Executive Officer,
President or Director of the Company.

     12.      Captions. The captions or headings in this Agreement are made for
convenience and general reference only and shall not be construed to describe,
define or limit the scope or intent of the provisions of this Agreement.

     13.      Assignment. In the event of a sale of the Employer, or a sale of
substantially all of the assets of the Employer, the Employer shall either (i)
cause the purchaser to assume its rights and obligations under this Agreement or
(ii) terminate this agreement and pay to Employee an early termination fee equal
to fifty percent (50%) of the compensation due to Employee during the remainder
of the Term.

 

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Employment Agreement – Ron Whitter – September 1, 2004

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     IN WITNESS WHEREOF, the Employer by and through its duly authorized
officers and the Employee have caused this instrument to be executed under seal
effective the 15th day of September, 2004, but effective upon the Effective
Date.

 

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Employment Agreement – Ron Whitter – September 1, 2004

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WITNESS: BLACK WARRIOR WIRELINE CORP.      /s/ Cheryl Hicks By:/s/ William L.
Jenkins   William L. Jenkins   Its CEO     WITNESS: EMPLOYEE:     /s/Olivia
Jackson /s/ Ron Whitter    Ron Whitter

 

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Employment Agreement – Ron Whitter – September 1, 2004

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