Exhibit 10.22.1
AMENDMENT NO. 1
TO
RECAPITALIZATION AGREEMENT
 
                    This Amendment No. 1 is entered into between Warrior Energy
Services Corporation (formerly Black Warrior Wireline Corp.), a Delaware
corporation (the “Company”) and St. James Capital Partners, L.P., a Delaware
limited partnership (the “Holder”).
 
BACKGROUND
 
 
A.
The Company and the Holder entered into a Recapitalization Agreement dated
October 6, 2006 (the “Recapitalization Agreement”) relating (i) to the
conversion into shares of Common Stock, $0.005 par value per share, (“Common
Stock”) of the principal and accrued interest on the promissory notes (the
“Notes”) of the Company held by the Holder, (ii) the sale to the Company of the
shares of Common Stock issued to the Holder on conversion of the Notes, (iii)
the sale to the Company of the Holder’s Warrants, and (iv) in the event the
Holder’s Warrants are not sold to the Company, the exchange by the Holder of its
Warrants for shares of Common Stock.
 
B.
All terms used in this Amendment not otherwise defined are defined as appears in
the Recapitalization Agreement.
 
C.
Under the terms of the Recapitalization Agreement and as a consequence of the
cutback provisions of Addendum C thereto, the Company expects to be unable to
purchase out of the Net Proceeds of the Underwritten Offering at the Closing
Time all the Conversion Shares and Warrants held by the Holder.  The Company and
the Holder desire to make certain amendments to the Recapitalization Agreement
with respect to the priority in the order of the purchase of the Holder’s
Conversion Shares and Warrants by the Company at the Closing Time.
 
 
 
 
NOW, THEREFORE, in consideration of the mutual agreements, covenants,
representations, and warranties contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, each intending to be legally bound, hereby agree as follows:
 
 
 
1.
Article III is amended to provide, subject to paragraph 2 hereof, that
Conversion Shares and Warrants shall be purchased at the Closing Time in
accordance with that Article in the following order:
 
 
 
 
(a)
First, the Holder shall sell and the Company shall purchase out of the Net
Proceeds at the Closing Time all of the Holder’s Warrants, to the extent of Net
Proceeds available, and
 
(b)
Second, after all Holder’s Warrants shall be purchased, Holder shall sell and
the Company shall purchase out of the Net Proceeds at the Closing Time as many
of Holder’s Conversion Shares as the Company has Net Proceeds available to
purchase.

 

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2.
The Company is a borrower under a Second Amended and Restated Credit Agreement
with General Electric Capital Corporation, as agent and lender, (“GECC”) dated
December 16, 2005 and a Second Lien Credit Agreement with GECC dated December
16, 2005 (collectively, such agreements are referred to as the “Credit
Agreements”) pursuant to which the Company is required to make certain mandatory
prepayments under the Credit Agreements out of the Net Proceeds of the
Underwritten Offering.  Accordingly, the Company is required to retain Net
Proceeds for its corporate purposes in the amounts necessary to meet the
mandatory prepayment requirements of the Credit Agreements.  The Holder and the
Company agree that the purchases and sales of Conversion Shares and Warrants at
the Closing Time of the Underwritten Offering is subject to the mandatory
prepayment terms of the Credit Agreements and the Exchange Share Equivalents to
be purchased by the Company at the Closing Time are subject to the Company’s
obligations under the Credit Agreements.
 
 
 
 
3.
The parties hereto hereby restate, ratify and reaffirm each and every term and
condition set forth in the Recapitalization Agreement effective as of the date
hereof and after giving effect to this Amendment.  All terms of the
Recapitalization Agreement as amended hereby shall be and remain in full force
and effect and shall constitute the legal, valid, binding and enforceable
obligations of the respective parties.

 

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Signature Page
 
          In Witness Whereof, the parties hereto have caused this Amendment No.
1 to the Recapitalization Agreement to be duly executed this 30th day of March,
2006.
 
Company
Warrior Energy Services Corporation
 
 
 
 
By:
/s/ Robert J. McNally
 
 

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Robert J. McNally,
Executive Vice President of Operations
 
 
 
Holder
St. James Capital Partners, L.P.
 
By Overcup Capital, L.L.C., its General Partner
 
 
 
 
By:
/s/ Jay Brown
 
 

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Samuel J. Brown, [Manager]

 

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