Exhibit 10.1
THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
AND LIMITED WAIVER
     THIS THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND LIMITED
WAIVER (this “Amendment”) dated as of June 16, 2010, is by and among Concho
Resources Inc., a Delaware corporation (the “Borrower”), the Lenders party
hereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as Administrative Agent
(in such capacity, the “Administrative Agent”). Unless the context otherwise
requires or unless otherwise expressly defined herein, capitalized terms used
but not defined in this Amendment have the meanings assigned to such terms in
the Credit Agreement (as defined below).
WITNESSETH:
     WHEREAS, the Borrower, the Administrative Agent and the Lenders entered
into that certain Amended and Restated Credit Agreement dated as of July 31,
2008 (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”);
     WHEREAS, the Borrower informed the Administrative Agent by letter dated
June 11, 2010 that Events of Default have occurred and are continuing under
Section 8.01(b) of the Credit Agreement as a result of the entry by one or more
Loan Parties into certain lease agreements containing provisions prohibiting
such Loan Parties from granting Liens on such lease agreements and the
properties subject thereto (as more fully described on Exhibit A hereto, the
“Subject Properties”) in violation of Section 7.09(a)(iii) of the Credit
Agreement (the “Specified Events of Default”);
     WHEREAS, the Borrower has requested that the Administrative Agent and the
Majority Lenders (a) amend the Credit Agreement in certain respects and
(b) waive the Specified Events of Default; and
     WHEREAS, the Administrative Agent and the Majority Lenders have agreed,
subject to the terms and conditions hereinafter set forth, to (a) amend the
Credit Agreement as provided herein and (b) waive the Specified Events of
Default.
     NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and confessed, the
Borrower, the Administrative Agent and the Majority Lenders, hereby agree as
follows:
SECTION 1. Amendments to Credit Agreement. Subject to the satisfaction or waiver
in writing of each condition precedent set forth in Section 4, and in reliance
on the representations, warranties, covenants and agreements contained in this
Amendment, the Credit Agreement shall be amended in the manner provided in this
Section 1.
     1.1 Burdensome Agreements. Section 7.09 of the Credit Agreement shall be
and it hereby is amended in its entirety to read as follows:
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     7.09 Burdensome Agreements. Enter into any Contractual Obligation (other
than this Agreement or any other Loan Document) that, whether expressly or in
effect, (a) limits the ability (i) of any Restricted Subsidiary to make
Restricted Payments to the Borrower or any Guarantor or to otherwise transfer
property to the Borrower or any Guarantor, (ii) of any Restricted Subsidiary to
Guarantee the Indebtedness of the Borrower or (iii) of the Borrower or any
Restricted Subsidiary to create, incur, assume or suffer to exist Liens in favor
of the Administrative Agent or the Lenders on property of such Person; provided,
however, that this clause (iii) shall not prohibit any negative pledge created,
incurred or provided (A) in favor of any holder of Indebtedness permitted under
Section 7.03 solely to the extent any such negative pledge relates to the
property financed by or the subject of such Indebtedness and/or the proceeds
thereof or (B) with respect to properties and reserves that are not Borrowing
Base Properties and are not included in the most recent Engineering Report
delivered pursuant to Section 3.01; or (b) requires the grant of a Lien to
secure an obligation of such Person if a Lien is granted to secure another
obligation of such Person.
SECTION 2. Limited Waiver. Subject to the satisfaction of each of the conditions
set forth in Section 4 of this Amendment, the Majority Lenders hereby waive the
Specified Events of Default and the applicability of Section 7.09 of the Credit
Agreement with respect to the Subject Properties until the next Redetermination
Date. By its signature below, the Borrower agrees that, except as expressly
provided above, nothing herein shall be construed as a continuing waiver of any
provision of the Credit Agreement or any other Loan Document. Nothing contained
herein shall obligate the Lenders to grant any additional waiver with respect to
Section 7.09 of the Credit Agreement or of any other provision of the Credit
Agreement or any other Loan Document.
SECTION 3. Release of Subject Properties. Upon the satisfaction of each of the
conditions set forth in Section 4 of this Amendment, the Majority Lenders hereby
authorize the Administrative Agent to release all of the Liens and security
interests granted by the Loan Parties to the Administrative Agent on the Subject
Properties.
SECTION 4. Conditions. The amendments to the Credit Agreement set forth in
Section 1 of this Amendment, the limited waiver set forth in Section 2 of this
Amendment and the authorization set forth in Section 3 of this Amendment shall
be effective upon the satisfaction of each of the conditions set forth in this
Section 4.
     4.1 Execution and Delivery. Each Loan Party and the Majority Lenders shall
have executed and delivered this Amendment and any other documents requested by
the Administrative Agent prior to the date hereof, all in form and substance
satisfactory to the Administrative Agent.
     4.2 No Default. Other than the Specified Events of Default, no Default
shall have occurred and be continuing.
     4.3 Other Documents. The Administrative Agent shall have received such
other instruments and documents incidental and appropriate to the transaction
provided for herein as
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the Administrative Agent or its special counsel may reasonably request prior to
the date hereof, and all such documents shall be in form and substance
satisfactory to the Administrative Agent.
     4.4 Legal Matters Satisfactory. All legal matters incident to the
consummation of the transactions contemplated hereby shall be reasonably
satisfactory to special counsel for the Administrative Agent retained at the
expense of the Borrower.
SECTION 5. Representations and Warranties of the Borrower. To induce the
Majority Lenders to enter into this Amendment, the Borrower hereby represents
and warrants to the Lenders as follows:
     5.1 Reaffirmation of Representations and Warranties/Further Assurances.
After giving effect to the amendments and the limited waiver contained herein,
each representation and warranty of the Borrower or any Guarantor contained in
the Credit Agreement or in any other Loan Document is true and correct in all
material respects on the date of this Amendment (except to the extent such
representations and warranties relate solely to an earlier date).
     5.2 Corporate Authority; No Conflicts. The execution, delivery and
performance by the Borrower and each Guarantor (to the extent a party hereto or
thereto) of this Amendment and all documents, instruments and agreements
contemplated herein are within the Borrower’s or such Guarantor’s corporate or
other organizational powers, have been duly authorized by necessary action,
require no approval, consent or action by or in respect of, or filing with, any
court or agency of government.
     5.3 Enforceability. This Amendment constitutes the valid and binding
obligation of the Borrower enforceable in accordance with its terms, except as
(i) the enforceability thereof may be limited by bankruptcy, insolvency or
similar laws affecting creditor’s rights generally, and (ii) the availability of
equitable remedies may be limited by equitable principles of general
application.
SECTION 6. Miscellaneous.
     6.1 Reaffirmation of Loan Documents and Liens. Any and all of the terms and
provisions of the Credit Agreement and the Loan Documents shall, except as
amended and modified hereby, remain in full force and effect. The Borrower
hereby agrees that the amendments and modifications herein contained shall not
impair its liabilities, duties and obligations under the Credit Agreement and
the other Loan Documents to which it is a party or, except as expressly provided
herein, the Liens granted by it securing the payment and performance thereof.
The execution, delivery and effectiveness of this Amendment shall not operate as
a waiver of any right, power or remedy of any Lender, the L/C Issuer or the
Administrative Agent under any of the Loan Documents, nor, except as expressly
provided herein, constitute a waiver or amendment of any provision of any of the
Loan Documents. Upon and after the execution of this Amendment by each of the
parties hereto, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Credit Agreement,
and each reference in the other Loan Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit
Agreement, shall mean and be a reference to the Credit Agreement as modified
hereby. This Amendment is
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a Loan Document, and all provisions in the Credit Agreement pertaining to Loan
Documents apply hereto.
     6.2 Parties in Interest. All of the terms and provisions of this Amendment
shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.
     6.3 Legal Expenses. The Borrower hereby agrees to pay all reasonable fees
and expenses of special counsel to the Administrative Agent incurred by the
Administrative Agent in connection with the preparation, negotiation and
execution of this Amendment and all related documents.
     6.4 Counterparts. This Amendment may be executed in one or more
counterparts and by different parties hereto in separate counterparts each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document. However, this Amendment shall bind no party until the
Borrower, the Majority Lenders, and the Administrative Agent have executed a
counterpart. Delivery of photocopies of the signature pages to this Amendment by
facsimile or electronic mail shall be effective as delivery of manually executed
counterparts of this Amendment.
     6.5 Complete Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
     6.6 Headings. The headings, captions and arrangements used in this
Amendment are, unless specified otherwise, for convenience only and shall not be
deemed to limit, amplify or modify the terms of this Amendment, nor affect the
meaning thereof.
     6.7 Governing Law. This Amendment shall be governed by, and construed in
accordance with, the law of the State of Texas.
     [Remainder of Page Intentionally Blank. Signature Pages Follow.]
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IN WITNESS WHEREOF, the parties have caused this Third Amendment to Amended and
Restated Credit Agreement and Limited Waiver to be duly executed as of the date
first above written.

            BORROWER:

CONCHO RESOURCES INC.,
a Delaware corporation
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            JPMORGAN CHASE BANK, N.A.,
as Administrative Agent
      By:   /s/ Mark E. Olsen         Mark E. Olson        Vice President     

            JPMORGAN CHASE BANK, N.A.,
as a Lender, L/C Issuer and Swing Line Lender
      By:   /s/ Mark E. Olsen         Mark E. Olson        Vice President     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            BANK OF AMERICA, N.A.,
as Syndication Agent and a Lender
      By:   /s/ Stephen J. Hoffman         Name:   Stephen J. Hoffman       
Title:   Managing Director     

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            BNP PARIBAS,
as a Co-Documentation Agent and a Lender
      By:   /s/ Betsey Jocher         Name:   Betsey Jocher        Title:   Vice
President     

                  By:   /s/ David Dodd         Name:   David Dodd       
Title:   Managing Director     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, f/k/a
CALYON (NEW YORK BRANCH),
as a Co-Documentation Agent and a Lender
      By:   /s/ Michael Willis         Name:   Michael Willis        Title:  
Managing Director     

                  By:   /s/ Tom Byargeon         Name:   Tom Byargeon       
Title:   Managing Director     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            ING CAPITAL LLC,
as a Co-Documentation Agent and a Lender
      By:   /s/ Richard Ennis         Name:   Richard Ennis        Title:  
Managing Director     

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            SCOTIABANC INC.,
as a Lender
      By:   /s/ J.F. Todd         Name:   J.F. Todd        Title:   Managing
Director     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            UNION BANK, N.A.,
as a Lender
      By:   /s/ Alison Fuqua         Name:   Alison Fuqua        Title:  
Assistant Vice President     

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            BANK OF SCOTLAND plc,
as a Lender
      By:   /s/ Julia R. Franklin         Name:   Julia R. Franklin       
Title:   Assistant Vice President     

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            COMPASS BANK,
as a Lender
      By:   /s/ Kathleen J. Brown         Name:   Kathleen J. Brown       
Title:   Senior Vice President     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            KEY BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Todd Coker         Name:   Todd Coker        Title:   Vice
President     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            U.S. BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Bruce E. Hernandez         Name:   Bruce E. Hernandez       
Title:   Vice President     

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            WELLS FARGO BANK, N.A.,
as a Lender
      By:   /s/ Thomas E. Stelmar, Jr.         Name:   Thomas E. Stelmar, Jr.   
    Title:   Vice President / Portfolio Manager     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            SUMITOMO MITSUI BANKING CORPORATION,
as a Lender
      By:           Name:   Masakazu Hasegawa       Title:   General Manager   
 

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            NATIXIS (formerly Natexis Banques Populaires),
as a Lender
      By:   /s/ Donovan Broussard         Name:   Donovan Broussard       
Title:   Managing Director     

                  By:   /s/ Louis P. Laville, III         Name:   Louis P.
Laville, III        Title:   Managing Director     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            SUNTRUST BANK,
as a Lender
      By:   /s/ Greg Magnuson         Name:   Greg Magnuson        Title:   Vice
President     

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            STERLING BANK,
as a Lender
      By:           Name:   Jeff Forbis       Title:   Senior Vice President    

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            BANK OF TEXAS, N.A.,
as a Lender
      By:   /s/ J. Michael Delbridge         Name:   J. Michael Delbridge       
Title:   Senior Vice President     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
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            CITIBANK, N.A. (formerly Citibank Texas, N.A.), as a
Lender
      By:   /s/ Gary T. Brednich         Name:   Gary T. Brednich       
Title:   Vice President     

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            DEUTSCHE BANK TRUST COMPANY AMERICAS,
as a Lender
      By:   /s/ Evelyn Thierry         Name:   Evelyn Thierry        Title:  
Director     

                  By:   /s/ Paul O’Leary         Name:   Paul O’Leary       
Title:   Director     

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            THE FROST NATIONAL BANK,
as a Lender
      By:           Name:   Alex Zemkoski       Title:   Vice President    

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CONSENT AND REAFFIRMATION
     The undersigned (each a “Guarantor”) hereby (i) acknowledges receipt of a
copy of the foregoing Third Amendment to Amended and Restated Credit Agreement
and Limited Waiver (the “Third Amendment”); (ii) consents to the Borrower’s
execution and delivery thereof; (iii) agrees to be bound thereby; (iv) affirms
that nothing contained therein shall modify in any respect whatsoever its
guaranty of the obligations of the Borrower to Lenders pursuant to the terms of
its Guaranty in favor of Agent and the Lenders (the “Guaranty”) and
(v) reaffirms that the Guaranty is and shall continue to remain in full force
and effect. Although each Guarantor has been informed of the matters set forth
herein and has acknowledged and agreed to same, each Guarantor understands that
the Lenders have no obligation to inform any Guarantor of such matters in the
future or to seek any Guarantor’s acknowledgment or agreement to future
amendments or waivers for its Guaranty to remain in full force and effect, and
nothing herein shall create such duty or obligation.
     IN WITNESS WHEREOF, the undersigned has executed this Consent and
Reaffirmation on and as of the date of this Third Amendment.

            GUARANTORS:

COG OPERATING LLC,
a Delaware limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer     

            COG REALTY LLC,
a Texas limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer     

            CONCHO ENERGY SERVICES LLC,
a Texas limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
    Consent and Reaffirmation

 

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            QUAIL RANCH LLC,
a Texas limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer     

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
    Consent and Reaffirmation

 

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EXHIBIT A
SUBJECT PROPERTIES
1. Oil and Gas Lease, dated as of June 1, 2008, by and between Chevron U.S.A.
Inc., Henry Petroleum LP and Henry Equity LLC covering the W/2 and SE/4,
Section 47, Blk 42, T-3-S, T&P RRy Co. Survey, Ector County, Texas.
2. Oil and Gas Lease, dated as of June 1, 2008, by and between Chevron U.S.A.
Inc., Henry Petroleum LP and Henry Equity LLC, covering all of Section 27, Blk
42, T-3-S, T&P RRy Co. Survey, Ector County, Texas.
3. Oil and Gas Lease, dated as of November 2, 2009, by and between Chevron
U.S.A. Inc., Chevron Midcontinent, L.P. and COG Operating LLC covering the N/2
SE/4 and E/2 SW/4 of Section 45, Blk 41, T-4-S, T&P RRy Co. Survey, Upton
County, Texas.

Third Amendment to Amended and Restated Credit Agreement and Limited Waiver    
    Exhibit A