Exhibit 10.1

 

AMENDMENT NO. 3

 

TO

 

AGREEMENT AND PLAN OF MERGER

 

THIS AMENDMENT NO. 3 TO AGREEMENT AND PLAN OF MERGER (this “Amendment”) is made
and entered into this 28th day of April, 2010 by and between Resaca
Exploitation, Inc., a Texas corporation (“Parent”), Resaca Acquisition
Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent
(“Merger Sub”), and Cano Petroleum, Inc., a Delaware corporation (“Target”).

 

W I T N E S S E T H :

 

WHEREAS, Parent, Merger Sub and Target are parties to that certain Agreement and
Plan of Merger dated September 29, 2009, that certain Amendment No. 1 to
Agreement and Plan of Merger dated February 24, 2010, and that certain Amendment
No. 2 to Agreement and Plan of Merger dated April 1, 2010 (as amended, the
“Merger Agreement”);

 

WHEREAS, Parent and Target desire to further amend the Merger Agreement to
extend the Termination Date to June 30, 2010; and

 

WHEREAS, pursuant to Section 11.12 of the Merger Agreement, the Merger Agreement
may be amended if made in writing by Parent and Target.

 

NOW, THEREFORE, in consideration of the premises, the mutual covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

Section 1.                                            Certain Definitions. 
Terms used in this Amendment and not otherwise defined shall have the meanings
set forth in the Merger Agreement.  All references to the “Agreement” in the
Merger Agreement shall be deemed to refer to the Merger Agreement, as amended by
this Amendment.

 

Section 2.                                            Amendment and Restatement
of Section 10.1(b).  Section 10.1(b) of the Merger Agreement is hereby amended
and restated in its entirety to read as follows:

 

“(b)                           by either Parent or Target if the Effective Time
has not occurred on or before June 30, 2010 (the “Termination Date”), provided
that the party seeking to terminate this Agreement pursuant to this
Section 10.1(b) shall not have breached in any material respect its obligations
under this Agreement in any manner that shall have proximately contributed to
the failure to consummate the Merger on or before the Termination Date;”

 

Section 3.                                            Ratification of the Merger
Agreement.  The Merger Agreement, as amended by this Amendment, is hereby
ratified and confirmed in all respects and shall remain in full force and
effect.

 

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Section 4.                                            Counterparts.  This
Amendment may be executed in several counterparts, each of which shall be an
original and all of which shall constitute the same instrument.

 

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[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of
the day and year first above written.

 

 

RESACA EXPLOITATION, INC.

 

 

 

 

 

 

 

By:

/s/ JOHN J. LENDRUM III

 

Name:

John J. Lendrum III

 

Title:

Chief Executive Officer

 

 

 

 

 

 

 

RESACA ACQUISITION SUB, INC.

 

 

 

 

 

 

 

By:

/s/ JOHN J. LENDRUM III

 

Name:

John J. Lendrum III

 

Title:

Chief Executive Officer

 

 

 

 

 

 

 

CANO PETROLEUM, INC.

 

 

 

 

 

 

 

By:

/s/ PHILLIP B. FEINER

 

Name:

Phillip B. Feiner

 

Title:

Vice President and General Counsel

 

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