EXHIBIT 10.1
FIFTH AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
This Fifth Amendment to Second Amended and Restated Credit Agreement (this
“Amendment”) dated as of August 30, 2012, is by and among Clayton Williams
Energy, Inc., a Delaware corporation (the “Borrower”), certain Subsidiaries of
the Borrower as Guarantors, 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 Guarantors, the Administrative Agent and the Lenders
entered into that certain Second Amended and Restated Credit Agreement dated as
of November 29, 2010 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”);
WHEREAS, the Borrower and the Guarantors have requested that the Administrative
Agent and the Lenders amend the Credit Agreement in certain respects and the
Administrative Agent and the Lenders have agreed to do so on the terms and
conditions hereinafter set forth.
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
Guarantors, the Administrative Agent and the Lenders hereby agree as follows:
SECTION 1.Amendments to the Credit Agreement. Subject to the satisfaction or
waiver in writing of each condition precedent set forth in Section 3 hereof, 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    Cover Page. The “$500,000,000” on the Cover Page to the Credit Agreement
shall be and it hereby is amended to read “$555,000,000”.
1.2    Amended Definitions. The following definitions in Section 1.01 of the
Credit Agreement shall be and they hereby are amended in their entirety to read
as follows:

“Aggregate Commitment” means, at any time, the sum of the Commitments of all of
the Lenders at such time. As of the Fifth Amendment Effective Date, the
Aggregate Commitment is $555,000,000.
“Commitment” means, with respect to each Lender, the commitment of such Lender
to make Loans and to acquire participations in Letters of Credit hereunder,
expressed as an amount representing the maximum aggregate amount of such
Lender's Credit Exposure hereunder at such time, as such commitment may be (a)
reduced from time to time pursuant to Section 2.02, (b) increased from time to
time as a result of such Lender delivering a Lender Certificate pursuant to
Section 2.03, and (c) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 11.04. The amount of each
Lender's

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Commitment shall be at any time the least of (i) such Lender's Maximum Credit
Amount, (ii) such Lender's Applicable Percentage of the Borrowing Base then in
effect or (iii) such Lender's Applicable Percentage of $555,000,000. The amount
of each Lender's Commitment as of the Fifth Amendment Effective Date is set
forth on Schedule 2.01.
1.3    New Definition. The following definition shall be and it hereby is added
to Section 1.01 of the Credit Agreement in alphabetical order:

“Fifth Amendment Effective Date” means August 30, 2012.

1.4    Flood Insurance Regulation. Article XI of the Credit Agreement shall be
and it hereby is amended by adding a new Section 11.20 to the end thereof to
read as follows:

Section 11.20. Flood Insurance Regulation. Notwithstanding any provision in any
Mortgage to the contrary, in no event is any Building (as defined in the
applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined
in the applicable Flood Insurance Regulation) located on the Mortgaged
Properties within an area having special flood hazards and in which flood
insurance is available under the National Flood Insurance Act of 1968 included
in the definition of “Mortgaged Properties” and no such Building or Manufactured
(Mobile) Home shall be encumbered by any Mortgage. As used herein, “Flood
Insurance Regulations” shall mean (i) the National Flood Insurance Act of 1968
as now or hereafter in effect or any successor statute thereto, (ii) the Flood
Disaster Protection Act of 1973 as now or hereafter in effect or any successor
statue thereto, (iii) the National Flood Insurance Reform Act of 1994 (amending
42 USC 4001, et seq.), as the same may be amended or recodified from time to
time, and (iv) the Flood Insurance Reform Act of 2004 and any regulations
promulgated thereunder.
1.5    Schedule 2.01. Schedule 2.01 to the Credit Agreement shall be and it
hereby is replaced with Schedule 2.01 to this Amendment.

SECTION 2.Reallocation of Commitments and Loans. The Lenders have agreed among
themselves to reallocate their respective Commitments on the date this Amendment
becomes effective and, after giving effect to such reallocation, the Commitment
and Applicable Percentage of each Lender shall be as set forth on Schedule 2.01
attached to this Amendment. With respect to such reallocation, each Lender shall
fund its portion of the Loans, as determined by the Administrative Agent, to the
Administrative Agent such that, after giving effect thereto, the principal
amount of each Lender's outstanding Loans shall be and be deemed to be equal to
its Applicable Percentage of the aggregate outstanding principal amount of all
Loans. The Administrative Agent hereby waives the $3,500 processing and
recordation fee set forth in Section 11.04(b)(ii)(C) of the Credit Agreement
with respect to the assignments and reallocations contemplated by this Section
2. To the extent requested by any Lender, the Borrower shall pay to such Lender,
within the time period prescribed by Section 2.16 of the Credit Agreement, any
amounts required to be paid by the Borrower under Section 2.16 of the Credit
Agreement in the event the payment of any principal of any Eurodollar Loan or
the conversion of any Eurodollar Loan other than on the last day of an Interest
Period applicable thereto is required in connection with the reallocation
contemplated by this Section 2.

SECTION 3.Conditions. The amendments to the Credit Agreement set forth in
Section 1 of this Amendment and the reallocations and assignments contained in
Section 2 of this Amendment shall be effective upon the satisfaction of each of
the conditions set forth in this Section 3.

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3.1    Execution and Delivery. The Borrower, each Guarantor and the 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.

3.2    Fees and Expenses. The Borrower shall have paid (or contemporaneously
with this Amendment becoming effective, will pay) to the Administrative Agent,
for the benefit of the Lenders, the amounts separately agreed upon among the
Borrower, the Lead Arranger and the Administrative Agent and all reasonable
invoiced fees and expenses required to be paid on or before the effectiveness of
this Amendment.

3.3    No Default. No Default shall have occurred and be continuing.

3.4    Other Documents. The Administrative Agent shall have received such other
instruments and documents incidental and appropriate to the transaction provided
for herein as 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.

SECTION 4.Representations and Warranties of the Borrower. To induce the Lenders
to enter into this Amendment, each Credit Party hereby represents and warrants
to the Lenders as follows:

4.1    Reaffirmation of Representations and Warranties. After giving effect to
the amendments herein, each representation and warranty of the Borrower or any
Guarantor contained in the Credit Agreement or in any of the other Loan
Documents is true and correct in all material respects on the date hereof
(except to the extent any such representations and warranties are expressly
limited to an earlier date, in which case, such representations and warranties
shall continue to be true and correct in all material respects as of such
specified earlier date).

4.2    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 action by or in respect of, or filing with, any court or agency of
government and do not violate or constitute a default under any provision of any
applicable law or other agreements binding upon the Borrower or any Guarantor or
result in the creation or imposition of any Lien upon any of the assets of the
Borrower or any Guarantor except as otherwise permitted in the Credit Agreement.

4.3    Enforceability. This Amendment constitutes the valid and binding
obligation of the Borrower and each Guarantor 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 5.Miscellaneous.

5.1    Reaffirmation of Loan Documents and Liens. Any and all of the terms and
provisions of the Credit Agreement and the other Loan Documents shall, except as
amended and modified hereby, remain in full force and effect. Each Credit Party
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 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 Issuing Bank or the Administrative Agent
under any of the Loan

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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 a Loan Document, and all
provisions in the Credit Agreement pertaining to Loan Documents apply hereto.

5.2    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.

5.3    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.

5.4    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
Guarantors, the Lenders (or at least the requisite percentage thereof), 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.

5.5    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.
5.6    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.

5.7    Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

[Remainder of Page Intentionally Blank. Signature Pages Follow.]

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IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed
as of the date first above written.
 
BORROWER:
CLAYTON WILLIAMS ENERGY, INC.
a Delaware corporation
By:   /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President
 
 
 
GUARANTORS:
SOUTHWEST ROYALTIES, INC.
a Delaware corporation
By:  /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President
 
 
 

WARRIOR GAS CO.
a Texas corporation
By:   /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President
 
 
 
CWEI ACQUISITIONS, INC.
a Delaware corporation
By:   /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President
 
 
 
ROMERE PASS ACQUISITION L.L.C.
a Delaware limited liability company
By:   /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President

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CWEI ROMERE PASS ACQUISITION CORP.
a Delaware corporation
By:   /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President
 
 
 
BLUE HEEL COMPANY
a Delaware corporation
By:   /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President
 
 
 
TEX-HAL PARTNERS, INC.
a Delaware corporation
By:   /s/ Michael L. Pollard  
Michael L. Pollard, Senior Vice President
 
 
 
DESTA DRILLING GP, LLC
a Texas limited liability company

 
By:   /s/ Michael L. Pollard  
       Michael L. Pollard, Senior Vice President
 
 
 
DESTA DRILLING, L.P.
a Texas limited partnership
By:Desta Drilling GP, LLC, its general partner
By:   /s/ Michael L. Pollard  
       Michael L. Pollard, Senior Vice President

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WEST COAST ENERGY PROPERTIES GP, LLC
a Texas limited liability company

By:   /s/ Michael L. Pollard  
       Michael L. Pollard, Senior Vice President
 
 
 
CLAJON INDUSTRIAL GAS, INC.
a Texas corporation

By:   /s/ Michael L. Pollard  
       Michael L. Pollard, Senior Vice President
 
 
 
CLAYTON WILLIAMS PIPELINE CORPORATION
a Delaware corporation

By:   /s/ Michael L. Pollard  
       Michael L. Pollard, Senior Vice President
 
 
 
SWR VPP, LLC
a Texas limited liability company

By:Southwest Royalties, Inc., its sole member

By:   /s/ Michael L. Pollard  
       Michael L. Pollard, Senior Vice President

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JPMORGAN CHASE BANK, N.A., as
Administrative Agent, Issuing Bank and a Lender

By:      /s/ David Morris  
Name: David Morris    
Title: Authorized Officer    

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BANK OF SCOTLAND plc,
as Syndication Agent and a Lender

By:      /s/ Stephen Giacolone
Name:    Stephen Giacolone
Title:    Assistant Vice President

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UNION BANK, N.A.,
as Co-Documentation Agent and a Lender

By:      /s/ Alison White
Name:    Alison White
Title:    Vice President

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WELLS FARGO BANK, N.A.
as Co-Documentation Agent and a Lender

By:      /s/ Edward Pak  
Name:    Edward Pak
Title:    Director

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NATIXIS (formerly Natexis Banques Populaires),
as a Lender

By:      /s/ Mary Lou Allen  
Name:    Mary Lou Allen
Title:    Director

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

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COMPASS BANK,
as a Lender

By:      /s/ Kathleen J. Bowen  
Name:    Kathleen J. Bowen
Title:    Senior Vice President

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FROST BANK,
as a Lender

By:      /s/ Alex Zemkoski  
Name:    Alex Zemkoski
Title:    Vice President

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KEYBANK NATIONAL ASSOCIATION,
as a Lender

By:      /s/ Craig Hanselman  
Name:    Craig Hanselman
Title:    Vice President

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UBS LOAN FINANCE LLC,
as a Lender

By:      /s/ Iria R. Otsa  
Name:    Iria R. Otsa
Title:    Associate Director

By:      /s/ Mary E. Evans  
Name:    Mary E. Evans
Title:    Associate Director

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THE ROYAL BANK OF SCOTLAND plc,
as a Lender

By:      /s/ Sanjay Remond  
Name:    Sanjay Remond
Title:    Authorized Signatory

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65682132.5    SCHEDULE 2.01
SCHEDULE 2.01

APPLICABLE PERCENTAGES AND COMMITMENTS

Lender
Title
Applicable Percentage
Commitment as of the Fifth Amendment Effective Date
Maximum Credit Amount
JPMorgan Chase Bank, N.A.
Administrative Agent
20.41184041
%
$
113,285,714.26

$
115,326,898.30

Union Bank, N.A.
Co-Documentation Agent
11.63449161
%
$
64,571,428.41

$
65,734,877.57

Wells Fargo Bank, N.A.
Co-Documentation Agent
11.63449161
%
$
64,571,428.41

$
65,734,877.57

Bank of Scotland plc
Syndication Agent
9.78120976
%
$
54,285,714.15

$
55,263,835.12

The Royal Bank of Scotland plc
 
8.72586876
%
$
48,428,571.59

$
49,301,158.47

Compass Bank
 
8.72586876
%
$
48,428,571.59

$
49,301,158.47

The Frost National Bank
 
8.72586876
%
$
48,428,571.59

$
49,301,158.47

Natixis
 
7.27155723
%
$
40,357,142.62

$
41,084,298.34

KeyBank National Association
 
7.27155723
%
$
40,357,142.62

$
41,084,298.34

UBS Loan Finance LLC
 
5.8172459
%
$
32,285,714.76

$
32,867,439.35

TOTAL:
 
100
%
$
555,000,000.00

$
565,000,000.00