Document:

Prepared and filed by St Ives Burrups

Exhibit 10.25

 

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 AEmployer@), and RON  WHITTER (hereinafter referred to as the AEmployee@), 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

 

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                       (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.

 

          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

  

 

          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 

 

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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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          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.

 

	
  WITNESS:

  	
  BLACK WARRIOR WIRELINE CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William L. Jenkins

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  William L. Jenkins

  
	
   

  	
   

  	
  Its CEO

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ron Whitter

  
	
   

  	
  

  
	
   

  	
  Ron Whitter

  

 

Page 5Prepared and filed by St Ives Burrups

Exhibit 10.25.1

 

Amendment to  Employment Agreement

 

          This  amendment amends the Employment Agreement (the Employment Agreement”) dated  September 1, 2004, between Black Warrior Wireline Corp., a Delaware corporation  now known through name change as Warrior Energy Services Corporation (the  “Company”) and Ron Whitter (“Employee”).

 

          WHEREAS,  the Company has been engaged over the past twenty-four to thirty months in  negotiating with respect to several transactions intended to maximize the value  of the Company for its stockholders and which, if entered into, would have  changed the management and corporate structure of the Company, and

 

          WHEREAS,  throughout this process, management of the Company has encouraged the loyalty  of Employee and has sought to retain Employee’s continued employment for the  furtherance of the process of seeking to maximize values of the Company for the  Company’s stockholders, and

 

          WHEREAS,  among other incentives to retain Employee, the Company included in the  Employment Agreement a provision calling for a payment to be made to Employee  upon a change of control or change in control with respect to the Company, and 

 

          WHEREAS,  the Employee and other of the Company’s employees have demonstrated, throughout  this process, their loyalty to the Company and its management which exceeds the  customary and normal expectations of loyalty arising out of an employment  relationship, and

 

          WHEREAS,  the Company believes that it is about to complete a recapitalization of its  outstanding equity securities and a public offering of the Company’s securities  which transactions, together with other recent events and transactions, are  expected to result in the Company having a greatly enhanced valuation, and

 

          WHEREAS,  the Board of Directors believes that it is in the best interest of the Company  to reward this loyalty of Employee, and

 

          WHEREAS,  in connection with entering into this Amendment, the Company and Employee have  agreed to certain amendments to the Employee’s Employment Agreement with the  Company.

 

          NOW,  THEREFORE, the Company and the Employee agree as follows:

 

          1.          Success  Bonus Payment.  Upon the closing of the public offering of  shares of the Company presently being undertaken, and subject to the closing of  that transaction, expected to yield gross proceeds to the Company of  approximately Eighty Million Dollars ($80,000,000) and the conclusion of  related transactions resulting in the recapitalization of the Company, the  Company shall pay to Employee a success bonus in the amount of $150,000.00 (the  “Bonus Payment”).

 

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          2.          Change of  Control Provision.  In  the event the Bonus Payment is made on or prior to September 30, 2006, then,  upon such payment, Paragraph 11 of the Employment Agreement (the “COC  Provision”) shall be deemed to be deleted in its entirety and the Employee  shall have agreed, without further action on Employee’s part, that no payment  is due to be made by the Company to the Employee under the COC Provision. In  the event the Bonus Payment is not made on or prior to September 30, 2006, the  provisions of Section 1 of this amendment shall be null and void, and the COC  Provision shall be modified to read as follows, effective September 30, 2006:

 

	
   

  	
               Change of Control.  Upon the first Change of Control to occur between September    30, 2006, and the end of the term of this Employment Agreement, the Employer    shall pay to the Employee the sum of $150,000.00 (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; or (v) William L. Jenkins ceases to serve as Chief    Executive Officer, President or Director of the Company.  There shall be only one payment due as a    result of a Change of
Control occurring on or after September 30, 2006, and    after such payment this section shall be of no further force and effect.

  

 

          3.          Extension  of Term.  The term of the  Employment Agreement is extended so that it now expires on December 31, 2008.

 

          4.          Salary  Increase.   The parties  acknowledge that the Employee’s salary was increased effective January 1, 2006,  to $235,000.00. 

 

          5.          No Further  Amendments.  Except as  amended hereby, the Employment Agreement shall remain in full force and effect  in accordance with its terms.  Other  than as specifically set forth herein, the parties hereto do not amend any term  or condition contained in the Employment Agreement.  

 

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          6.          Entire  Agreement.  The  Employment Agreement and this Amendment embody the entire agreement and  understanding between the Company and Employee, and supersede all prior  agreements and understandings between said parties relating to the subject  matter thereof.  

 

	
  WITNESS: 

  	
  WARRIOR    ENERGY SERVICES 
    CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William    L. Jenkins

  
	
   

  	
   

  	
  

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  
	
  WITNESS: 

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  /s/ Ron    Whitter

  
	
   

  	
  

  
	
   

  	
  Ron Whitter

  

 

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