Document:

Second Amendment to Five-Year Revolving Credit Agreement

 EXHIBIT 10.5 

 SECOND AMENDMENT TO 
 5-YEAR
REVOLVING CREDIT AGREEMENT 
 dated as of 
 October 25, 2006 
 among 
 XTO ENERGY INC., 
 as Borrower, 
 JPMORGAN CHASE BANK, N.A., 
 as
Administrative Agent, 
 and 
 The Lenders Party Hereto 
  

 BANK OF AMERICA, N.A., 
 BNP PARIBAS, 
 CALYON NEW YORK BRANCH, 
 and

 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Co-Syndication Agents 
 and 
 CITIBANK, N.A., 
 HARRIS NESBITT FINANCING, INC., 
 and 
 SUNTRUST BANK,

 as Co-Documentation Agents 
  

 J.P. MORGAN SECURITIES INC. and BANC OF AMERICA SECURITIES LLC, 
 as Co-Arrangers and Joint Bookrunners 
  

 SECOND AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT 
 THIS SECOND AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT (this “Second Amendment”) dated as of October 25, 2006, is among
XTO ENERGY INC., a Delaware corporation, as the Borrower; JPMORGAN CHASE BANK, N.A., as Administrative Agent, JPMORGAN CHASE BANK,
N.A., BANK OF AMERICA, N.A., and U.S. BANK NATIONAL ASSOCIATION, as Issuing Banks, and the Lenders party hereto. 
 RECITALS 
 A. The Borrower, the
Administrative Agent and the Lenders are parties to that certain 5-Year Revolving Credit Agreement dated as of April 1, 2005 (as amended by the First Amendment to 5-Year Revolving Credit Agreement dated as of March 10, 2006, the
“Credit Agreement”), pursuant to which the Lenders have made certain loans to and extensions of credit for the account of the Borrower. 
 B. The Borrower has requested and the Lenders have agreed to amend certain provisions of the Credit Agreement. 
 C. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 Section 1. Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the
Credit Agreement. Unless otherwise indicated, all article and section references in this Second Amendment refer to articles and sections of the Credit Agreement. 
 Section 2. Amendments to Credit Agreement. 
 2.1 Amendments to Section 1.01. 

(a) The definition of “Agreement” is hereby amended in its entirety to read as follows: 
 “Agreement” means this 5-Year Revolving Credit Agreement, as amended by the First Amendment and the Second Amendment, as
the same may from time to time be amended, modified, restated, or replaced from time to time. 
 (b) The following definition
is hereby added where alphabetically appropriate to read as follows: 
 “Second Amendment” means the Second
Amendment to 5-Year Revolving Credit Agreement dated as of October 25, 2006 among the Borrower and the Lenders party thereto. 
 2.2
Amendment to Section 4.02. Section 4.02 is hereby amended in its entirety to read as follows: 

 “Section 4.02 Each Credit Event. The obligation of each Lender to make a Loan
on the occasion of any Borrowing, and of the Issuing Banks to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions: 
 (a) The representations and warranties of the Borrower set forth in this Agreement and of the Subsidiary Guarantors set forth in the
Subsidiary Guaranties shall be true and correct on and as of the date of such Borrowing or the date of the issuance, amendment, renewal or extension of such Letter of Credit, as applicable. 
 (b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter
of Credit, as applicable, no Default shall have occurred and be continuing. 
 Each Borrowing and each issuance, amendment,
renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.” 
 Section 3. Conditions Precedent. This Second Amendment shall not become effective until the date on which each of the following conditions is
satisfied (or waived in accordance with Section 9.02(b) of the Credit Agreement) (the “Effective Date”): 
 3.1 The
Administrative Agent shall have received from the Required Lenders and the Borrower, counterparts (in such number as may be requested by the Administrative Agent) of this Second Amendment signed on behalf of such Persons. 
 3.2 The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may
reasonably request. 
 3.3 No Default shall have occurred and be continuing, after giving effect to the terms of this Second Amendment.

 Section 4. Miscellaneous. 
 4.1 Confirmation. The provisions of the Credit Agreement, as amended by this Second Amendment, shall remain in full force and effect following the effectiveness of this Second Amendment. 
 4.2 Ratification and Affirmation; Representations and Warranties. The Borrower hereby (a) ratifies and affirms its obligations under, and
acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding
the amendments contained herein and (b) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Second Amendment: (i) all of the representations and warranties contained in each Loan
Document to which it is a party are true and correct, except to the extent any such representations and warranties are expressly 

  

 2 

 
limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct as of such specified earlier date,
(ii) no Default has occurred and is continuing and (iii) since December 31, 2005, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect. 
 4.3 Loan Document. This Second Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and
provisions of the Credit Agreement relating to Loan Documents shall apply hereto. 
 4.4 Counterparts. This Second Amendment may be
executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Second Amendment by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof. 
 4.5 NO ORAL AGREEMENT. THIS SECOND AMENDMENT, THE CREDIT
AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. 
 4.6 GOVERNING LAW. THIS SECOND AMENDMENT (INCLUDING, BUT NOT LIMITED
TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS. 
 [SIGNATURES BEGIN NEXT PAGE] 
  

 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed as of the
date first written above. 
  

			
	 XTO ENERGY INC.

		
	By:	 	 /s/ Brent W. Clum

		 	 Brent W. Clum

		 	 Vice President & Treasurer

  

 S-1 

									
	 Administrative Agent, Issuing
 Bank & Lender:
	 		 	 JPMORGAN CHASE BANK, N.A.

					
		 		 		 	 By:
	 	 /s/ Robert Traband

		 		 		 		 	 Robert Traband

		 		 		 		 	 Vice President

  

 S-2 

									
	 Issuing Bank & Lender:
	 		 	 BANK OF AMERICA, N.A.

					
		 		 		 	 By:
	 	 /s/ Ronald E. McKaig

		 		 		 		 	 Ronald E. McKaig

		 		 		 		 	 Senior Vice President

  

 S-3 

									
	 Lender:
	 		 	 BNP PARIBAS

					
		 		 		 	 By:
	 	 /s/ David Dodd

		 		 		 	 Name:
	 	 David Dodd

		 		 		 	 Title:
	 	 Director

					
		 		 		 	 By:
	 	 /s/ Polly Schott

		 		 		 	 Name:
	 	 Polly Schott

		 		 		 	 Title:
	 	 Vice President

  

 S-4 

									
	 Lender:
	 		 	 CALYON NEW YORK BRANCH

					
		 		 		 	 By:
	 	 /s/ Tom Byargeon

		 		 		 	 Name:
	 	 Tom Byargeon

		 		 		 	 Title:
	 	 Managing Director

					
		 		 		 	 By:
	 	 /s/ Michael Willis

		 		 		 	 Name:
	 	 Michael Willis

		 		 		 	 Title:
	 	 Director

  

 S-5 

									
	 Lender:
	 		 	 WACHOVIA BANK, NATIONAL
 ASSOCIATION

					
		 		 		 	 By:
	 	 /s/ Paul Pritchett

		 		 		 		 	 Paul Pritchett

		 		 		 		 	 Vice President

  

 S-6 

									
	 Lender:
	 		 	 CITIBANK, N.A.

					
		 		 		 	 By:
	 	 /s/ James Reilly

		 		 		 		 	 James Reilly

		 		 		 		 	 Attorney-in-Fact

  

 S-7 

									
	 Lender:
	 		 	 HARRIS NESBITT FINANCING, INC.

					
		 		 		 	 By:
	 	 /s/ James V. Ducote

		 		 		 		 	 James V. Ducote

		 		 		 		 	 Vice President

  

 S-8 

									
	 Lender:
	 		 	 SUNTRUST BANK

					
		 		 		 	 By:
	 	 /s/ James M. Warren

		 		 		 		 	 James M. Warren

		 		 		 		 	 Managing Director

  

 S-9 

									
	 Lender:
	 		 	 ABN AMRO BANK N.V.

					
		 		 		 	 By:
	 	 /s/ Jamie Conn

		 		 		 		 	 Jamie Conn

		 		 		 		 	 Managing Director

					
		 		 		 	 By:
	 	 /s/ John Reed

		 		 		 		 	 John Reed

		 		 		 		 	 Director

  

 S-10 

									
	 Lender:
	 		 	 BARCLAYS BANK PLC

					
		 		 		 	 By:
	 	 /s/ Nicholas Bell

		 		 		 	 Name:
	 	 Nicholas Bell

		 		 		 	 Title:
	 	 Director

  

 S-11 

									
	 Lender:
	 		 	 DEUTSCHE BANK AG NEW YORK BRANCH

					
		 		 		 	 By:
	 	 /s/ Ming K. Chu

		 		 		 	 Name:
	 	 Ming K. Chu

		 		 		 	 Title:
	 	 Vice President

					
		 		 		 	 By:
	 	 /s/ Vincent Wong

		 		 		 	 Name:
	 	 Vincent Wong

		 		 		 	 Title:
	 	 Vice President

  

 S-12 

									
	 Lender:
	 		 	 FORTIS CAPITAL CORP.

					
		 		 		 	 By:
	 	 /s/ Michele Jones

		 		 		 		 	 Michele Jones

		 		 		 		 	 Senior Vice President

					
		 		 		 	 By:
	 	 /s/ Darrell Holley

		 		 		 	 Name:
	 	 Darrell Holley

		 		 		 	 Title:
	 	 Managing Director

  

 S-13 

									
	 Lender:
	 		 	 THE ROYAL BANK OF SCOTLAND plc

					
		 		 		 	 By:
	 	 /s/ David Slye

		 		 		 	 Name:
	 	 David Slye

		 		 		 	 Title:
	 	 Vice President

  

 S-14 

									
	 Lender:
	 		 	 WELLS FARGO BANK, N.A.

					
		 		 		 	 By:
	 	 /s/ Charles D. Kirkham

		 		 		 		 	 Charles D. Kirkham

		 		 		 		 	 Vice President

  

 S-15 

									
	 Lender:
	 		 	 THE BANK OF NEW YORK

					
		 		 		 	 By:
	 	 /s/ Craig Anderson

		 		 		 		 	 Craig Anderson

		 		 		 		 	 Vice President

  

 S-16 

									
	 Lender:
	 		 	 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
 HOUSTON AGENCY

					
		 		 		 	 By:
	 	 /s/ Kelton Glasscock

		 		 		 		 	 Kelton Glasscock

		 		 		 		 	 Vice President and Manager

  

 S-17 

									
	 Issuing Bank & Lender:
	 		 	 U.S. BANK NATIONAL ASSOCIATION

					
		 		 		 	 By:
	 	 /s/ Mark E. Thompson

		 		 		 		 	 Mark E. Thompson

		 		 		 		 	 Vice President

  

 S-18 

									
	 Lender:
	 		 	 COMERICA BANK

					
		 		 		 	 By:
	 	 /s/ Peter L. Sefzik

		 		 		 		 	 Peter L. Sefzik

		 		 		 		 	 Vice President

  

 S-19 

									
	 Lender:
	 		 	 UBS LOAN FINANCE LLC

					
		 		 		 	 By:
	 	 /s/ Richard L. Tavrow

		 		 		 	 Name:
	 	 Richard L. Tavrow

		 		 		 	 Title:
	 	 Director

					
		 		 		 	 By:
	 	 /s/ Irja R. Otsa

		 		 		 	 Name:
	 	 Irja R. Otsa

		 		 		 	 Title:
	 	 Associate Director

  

 S-20 

									
	 Lender:
	 		 	 KBC BANK, N.V.

					
		 		 		 	 By:
	 	  
		 		 		 	 Name:
	 	
		 		 		 	 Title:
	 	
					
		 		 		 	 By:
	 	  
		 		 		 	 Name:
	 	
		 		 		 	 Title:
	 	

  

 S-21 

									
	 Lender:
	 		 	 NATEXIS BANQUES POPULAIRES

					
		 		 		 	 By:
	 	 /s/ Louis P. Laville, III

		 		 		 		 	 Louis P. Laville, III

		 		 		 		 	 Vice President & Manager

					
		 		 		 	 By:
	 	 /s/ Daniel Payer

		 		 		 		 	 Daniel Payer

		 		 		 		 	 Vice President

  

 S-22High Performance Compensation Plan

 Exhibit 10.1.23 
 

 
 2006 
 HIGH
PERFORMANCE INCENTIVE PROGRAM 
 The High Performance Incentive Program (HPIP) is designed to recognize and reward those employees of Pacific Capital Bancorp (the
Company) who have contributed meaningfully to the increase in shareholder value, profitability and customer centricity of the Company. Additionally, the plan’s objectives include the following: 
  

	 	•	 	Create greater alignment with the Core Bank Performance* 

  

	 	•	 	Encourage teamwork within departments and across business units 

  

	 	•	 	Increase shareholder value through Employees’ performance 

  

	 	•	 	Ensure that our total compensation is competitive 

 The High Performance Incentive Program is
linked directly to achieving the Company’s annual Core Bank Net Income goal. Every employee is important in achieving our goal. 
  

	*	Does not include revenue and expenses from Refund Anticipation Loan and Refund Transfer business. 

 KEY ELEMENTS 
 Success Factors 
 Three Success Factors
determine an annual Incentive award: 
  

	 	•	 	Company Performance 

  

	 	•	 	Business Unit Performance 

  

	 	•	 	Individual Performance 

  

	•	 	Company Performance: Growth in our Core Bank net income. 

 Through the
Company’s annual business planning and budgeting process, a percentage of growth in the Core Bank’s net income is established. For 2006, that growth percentage is targeted at a minimum of 6.3%, which represents net income after tax of $68
Million or above. 
  

	•	 	Business Unit Performance 

 The performance of each Business Unit is dependent upon the
combined efforts and focus of all its employees. To ensure that there is a common framework, the following metrics will apply to all Business Units: 
  

	 	•	 	Revenue Generation 

  

	 	•	 	Expense Management 

  

	 	•	 	Customer Value Added 

  

	 	•	 	Risk Management (e.g. Regulatory and Governance Compliance) 

 Business Units may have
different components for these metrics depending upon their function. It is important that all employees understand their role in achieving 

 
the Business Unit goals and how attainment of Business Unit goals impact our Core Bank performance. 
  

	•	 	Individual Performance 

 In addition to the responsibilities each individual has in
performing his or her job, individual goals will be established that contribute directly to the Company’s annual business goals. The individual’s goals should 
  

	 	•	 	support the Business Unit’s business plan success metrics 

  

	 	•	 	represent accomplishments beyond average performance 

  

	 	•	 	must be significant, and directly support the profitability or contribution of the business unit’s achievement of the annual business plan 

  

	 	•	 	ensure compliance and risk mitigation is adhered to 

  

	 	•	 	measure leadership and development of employees if the individual is in a leadership role. 

 Goals 
 The goals utilized in HPIP should be consistent with the goals that are outlined in the employee’s Performance Agreement,
Coaching & Evaluation (PACE). Positions in higher grade levels generally have the responsibility to guide a business unit and to more directly impact the overall Bank performance. The goals in the higher grade levels, therefore, should be
focused more heavily to the overall Bank performance. The goal setting process should correlate directly to the individual’s responsibility level and ability to measure his or her impact on company performance. It is recommended that not more
than three to five goals are established to ensure that the employee has the right focus. 
 Plan Funding 
 Our ability to fund incentive payouts is dependent upon our overall success in achieving the Core Bank’s net income goals. Funding levels will reflect the degree of success in
attaining or exceeding the Core Bank’s goal and in turn, will establish the dollar level of the incentive pool. If the Core Bank does not achieve the Threshold level, there will be no payout of incentives even if a Department and/or Individual
has met or exceeded his or her goals. 
  

					
	 Levels
	  	 Bank Goal Achievement
	  	 Funding Level of Pool

			
	 Below Threshold
	  	 < 95% of Goal
	  	 No funding

			
	 Threshold
	  	 At least 95% of Goal
	  	 75% funded

			
	 Target
	  	 At least 100% of Goal
	  	 100% funded

			
	 Stretch
	  	 At least 110% of goal
	  	 120%

			
	 Super Stretch Company level only
	  	 120% of goal or more
	  	 Funded up to a cap of 150%

  

 2 

 Incentive Pool Allocation 
 If the
Company is successful in meeting its goals, the funded pool amount will be distributed to the Senior Leaders of the divisions. In turn, the Senior Leader of each division will partner with his/her direct reports to allocate the incentives to the key
contributors within the division. 
 Guidelines for Determining Individual Award 
 The award is not based on a formula but is rather a blend of the individual’s results and subjective factors. The subjective factors must include Risk Management, Commitment to Excellence, and Leadership (if appropriate).
Other factors, which may be considered, are project management, cross-functional teaming, and special assignments. 
 The department leader is responsible for
recommending the appropriate incentive awards based upon the individual contributions of each eligible employee. Award percentages will differ based upon the level of goal achievement and performance of the employee. An individual must have achieved
an “Expectations Achieved” overall PACE rating for the past 12 months to be considered for any award. An award also should take into account the length of time that the employee has been employed during the plan year and be prorated
accordingly. 
 Base compensation rewards the employee for performing his or her responsibilities; the HPIP incentive recognizes the “above and beyond”
contributions of the employee. 
 TERMS AND CONDITIONS 
 Eligible
Participants 
 All regular status employees of Pacific Capital Bancorp who are paid on a 100% salaried basis through the program year and who are actively
employed at the time of distribution are eligible for consideration. Eligibility, however, does not guarantee payment. Employees who participate in variable or commission pay programs or the RAL department incentive program are not eligible for the
HPIP Program. 
 Employees who are hired during the year but prior to October 1, 2006, will be eligible on a prorated basis. Employees who change from a 100%
salaried position to a variable or commission pay plan during the business year may be eligible for HPIP on a prorated basis. 
  

 3 

 When an employee transfers to a new business unit during the year, it is important that the new leader collaborates with the former
leader to document accomplishment level for the previously set individual goals and business unit goals. The new leader and employee will then determine and document new individual and department goals for the balance of the year. 
 Program Year 
 The HPIP is effective January 1, 2006 and will be in effect
during the plan year defined as January 1 through December 31, 2006. The Program will be reviewed and updated annually to ensure alignment with the Bank’s strategic plan and business goals. 
 Program Administrator 
 The Program Administrator is the Director of Human
Resources of Pacific Capital Bancorp. The Program Administrator reviews all recommendations with the President and CEO for approval prior to submission to the Compensation Committee of the Board of Directors and has responsibility to ensure fair and
consistent consideration of participants. The Program Administrator may recommend modifications in the program design and review the effectiveness of the plan on an annual basis. 
 Payment 
 Funding of the program and payments are subject to approval by the Compensation Committee of the Board of Directors, and
if approved, payment will be made in February 2007. The Compensation Committee also has the discretion to approve certain awards in the event that the Company does not meet the threshold goal. 
 Termination of Employment 
 To encourage employees to remain in the employment of
the Company, a participant must be employed on the date of the actual incentive payout. Any termination (except by reason of death), prior to the incentive payment date will serve as a forfeiture of any award. 
 Disability or Death 
 If a participant is disabled by an accident or illness, and
is disabled long enough to be placed on long-term disability as defined by the Company’s LTD plan, his or her incentive award for the Program period shall be pro-rated so that no award will be earned during the period of long-term disability.

 In the event of death, the Company will pay to the participant’s estate the pro-rata portion of the award that the participant would have received if he or she
had lived to the end of the Plan year. 
  

 4 

 Miscellaneous 
 The Program will
not be deemed to give any participant the right to be retained in the employ of the Company, nor will the Program interfere with the right of the Company to discharge any participant at any time. 
 Pacific Capital Bancorp reserves the right to modify this program at any time. 
 Revised 3/06

  

 5

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