Document:

Fifth Supplemental Indenture

 EXHIBIT 4.7 

 
 FIFTH SUPPLEMENTAL INDENTURE 

FIFTH SUPPLEMENTAL INDENTURE (this “Fifth Supplemental Indenture”), dated as of December 12,
2011, among (i) COG Production LLC, a Texas limited liability company (“COG Production”) and a subsidiary of Concho Resources Inc., a Delaware corporation (the “Company”), (ii) COG Acreage
LP, a Texas limited partnership, and (iii) Delaware River SWD, LLC, a Texas limited liability company (together with COG Production and COG Acreage LP, the “New Subsidiary Guarantors”) and a
subsidiary of the Company, (iv) the Company, (v) the existing Subsidiary Guarantors (as defined in the Supplemental Indentures referred to herein) and (vi) Wells Fargo Bank, National Association, as trustee under the Indenture
referred to herein (the “Trustee”). The New Subsidiary Guarantors and the existing Subsidiary Guarantors are sometimes referred to collectively herein as the “Subsidiary Guarantors” or individually as
a “Subsidiary Guarantor.” 
 W I T N E S S E T H 

WHEREAS, the Company and the existing Subsidiary Guarantors are parties to the indenture (the
“Indenture”), dated as of September 18, 2009, as supplemented by the First Supplemental Indenture, dated as of September 18, 2009 (the “First Supplemental Indenture”), the Second Supplemental
Indenture, dated as of November 3, 2010 (the “Second Supplemental Indenture”), the Third Supplemental Indenture, dated as of December 14, 2010 (the “Third Supplemental Indenture”), and the
Fourth Supplemental Indenture dated as of May 23, 2011 (the “Fourth Supplemental Indenture” and, together with the First Supplemental Indenture and the Third Supplemental Indenture, the “Supplemental
Indentures”), relating to the 8.625% Senior Notes due 2017, the 7.0% Senior Notes due 2021 and the 6.5% Senior Notes due 2022 (collectively, the “Securities”) of the Company; 

WHEREAS, on or about October 1, 2011, Concho Energy Services LLC was merged with and into COG Operating LLC;
and 
 WHEREAS, Section 1117 of each of the Supplemental Indentures obligates the Company to cause
certain Restricted Subsidiaries to become Subsidiary Guarantors by executing a supplemental indenture as provided in such Section; and 
 WHEREAS, pursuant to Section 1001 of each of the Supplemental Indentures, the Company, the Subsidiary Guarantors and the Trustee are authorized to execute and deliver this Supplemental
Indenture to amend or supplement the Indenture without the consent of any Holder; 
 NOW THEREFORE, to
comply with the provisions of the Supplemental Indentures and in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Subsidiary Guarantors, the other Subsidiary
Guarantors, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows: 
 1.    CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Supplemental Indentures. 

2.    AGREEMENT TO GUARANTEE. The New Subsidiary Guarantors hereby agree, jointly and severally, with
all other Subsidiary Guarantors, to fully and unconditionally Guarantee to each Holder and to the Trustee the Obligations, to the extent set forth in Article Sixteen of each of the Supplemental Indentures and subject to the provisions thereof. The
obligations of the Subsidiary Guarantors to the Holders of Securities and to the Trustee pursuant to the Subsidiary Guarantees and the Indenture are expressly set forth in Article Sixteen of each of the Supplemental Indentures and reference is
hereby made to such Article for the precise terms of the Subsidiary Guarantees. 

 3.    NEW YORK LAW TO GOVERN. THE LAWS OF THE STATE OF
NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE AND ENFORCE THIS FIFTH SUPPLEMENTAL INDENTURE. 

4.     COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each
signed copy shall be an original, but all of them together represent the same agreement. This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument. 

5.    EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect
the construction hereof. 
 6.    THE TRUSTEE. Except as otherwise expressly provided
herein, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this Fifth Supplemental Indenture. This Fifth Supplemental Indenture is executed and accepted by the Trustee subject to
all the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect hereto. 

[Remainder of Page Intentionally Left Blank. 
 Signature Page Follows.] 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the date first above written. 
 Dated:  
December 12, 2011 
  

			
	 NEW SUBSIDIARY GUARANTORS:
  

COG PRODUCTION LLC

		
	By:	 	/s/ Darin G. Holderness                
	 Name:
 Title:
	 	         Darin G. Holderness
         Senior Vice President, Chief Financial Officer and Treasurer

 
			
	
	 COG ACREAGE LP
 By COG Production LLC,
 its general partner

		
	By:	 	/s/ Darin G. Holderness                
	 Name:
 Title:
	 	         Darin G. Holderness
         Senior Vice President, Chief Financial Officer and Treasurer

 
			
	
	 DELAWARE RIVER SWD LLC

 

		
	By:	 	/s/ Darin G. Holderness                
	 Name:
 Title:
	 	         Darin G. Holderness
         Senior Vice President, Chief Financial Officer and Treasurer

 
			
	
	 OTHER SUBSIDIARY GUARANTORS:
  

COG HOLDINGS LLC
 COG OPERATING LLC

COG REALTY LLC
 CONCHO OIL & GAS
LLC
 QUAIL RANCH LLC
  

		
	By:	 	/s/ Darin G. Holderness                
	 Name:
 Title:
	 	         Darin G. Holderness
         Senior Vice President, Chief Financial Officer and Treasurer

  

			
	 COMPANY:
  

CONCHO RESOURCES INC.
  

		
	By:	 	/s/ Darin G. Holderness                
	 Name:
 Title:
	 	         Darin G. Holderness
         Senior Vice President, Chief Financial Officer and Treasurer

  

			
	
	 TRUSTEE:
  

WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as
Trustee
  

		
	By:	 	/s/ John
Stohlman                        
		 	    Authorized SignatoryEX-10.26

 Exhibit 10.26 
 Compensation Arrangements for 
 Certain Named Executive Officers

 Set forth below is a summary of the compensation arrangements of the executive officers to be named in the Company’s 2012 Proxy
Statement for the Annual Meeting of Stockholders, other than Mr. Jon P. Vrabely, the Company’s President and Chief Executive Officer, who is covered by a written employment agreement filed as an exhibit to the Company’s Annual
Report on Form 10-K for the year ended December 31, 2011 (the “Form 10-K”). 
 Each of the executive officers named below is an
employee at will whose compensation and employment status may be changed at any time in the discretion of the Company’s Board of Directors. 
 Base Salaries. In connection with the Company’s cost control efforts in response to the prolonged, severe decline in the housing market, the Company instituted a 10% reduction in the base
salaries of certain employees, including each of the executive officers, which became effective in November 2011 and is still in effect. 
 The
current base salary for each of the named executive officers, other than Mr. Vrabely, after giving effect to the 10% reduction instituted in November 2011 as described above, and the unreduced base salary for each such officer, is as follows:

  

									
	 	  	Base Salary	 
	 Name and Principal Position
	  	(After 10%
reduction)	 	  	(Unreduced)	 
	 Philip W. Keipp —

Vice President, Chief Financial Officer and Secretary
	  	$	225,000	  	  	$	250,000	  
	 Gregory W. Gurley —

Vice President, Product Management and Marketing
	  	$	202,500	  	  	$	225,000	  

 Base salaries are adjusted from time to time. Any such adjustments are approved by Board of Directors upon recommendation
of the Management Organization and Compensation Committee. 
 Bonuses and Equity Awards. These executive officers are also eligible to
participate in the Company’s annual incentive compensation plans and equity incentive compensation plans, as provided in the terms of such plans. Such plans, and any forms of awards thereunder providing for material terms, are included as
exhibits to the Form 10-K or to later-filed periodic reports.EX-10.27

 EXHIBIT 10.27 

COMPENSATION ARRANGEMENTS FOR OUTSIDE DIRECTORS 
 Cash Compensation 
 In conjuction with the Company’s ongoing cost control
efforts, the Board of Directors, upon recommendation of the Management Organization & Compensation Committee, approved a 10% reduction in cash fees paid to outside directors, effective December 1, 2011. The cash fees paid to outside
directors are as set forth below. 
 Chairman of the Board 
 Through November 2011, the Chairman of the Board of Directors, Mr. R.S. Evans, received a cash retainer fee at rate of $70,000 per year. In conjuction with the above-described fee reduction,
Mr. Evans’ annual cash retainer was reduced to $63,000 as of December 1, 2011. Mr. Evans receives no other cash compensation for his service on the Board and its Committees. 

Other Non-Employee Directors 

Non-employee directors, other than Mr. Evans, receive the following cash compensation: 

 

									
	 	  	Through
11/30/11	 	  	After 10% reduction
effective 12/1/11	 
	 Annual Board retainer
	  	$	22,500	  	  	$	20,250	  
	 Annual retainer – Audit Committee chairman
	  	$	9,000	  	  	$	8,100	  
	 Annual retainer – other Audit Committee members
	  	$	1,350	  	  	$	1,215	  
	 Annual retainer – Management Organization & Compensation Committee chairman
	  	$	2,700	  	  	$	2,430	  
	 Annual retainer – Executive Committee members
	  	$	1,800	  	  	$	1,620	  
	 Meeting fee
	  	$	1,800	  	  	$	1,620	  

 Stock Compensation 
 In accordance with Company’s non-employee directors’ stock compensation program in effect on the date of the 2011 Annual Meeting of Stockholders, each non-employee director is awarded, on the
date of the Annual Meeting of Stockholders, a grant of restricted stock units (“RSUs”) for a number of shares equal to the lesser of (i) shares valued at $15,000 on the date of grant, or (ii) 7,500 shares. 

The RSUs vest in full on the date of the next Annual Meeting of Stockholders or upon a change of control of the Company. The shares of stock represented
by vested RSUs are delivered to the director upon cessation of his service on the Board. 
 On April 18, 2011, the date of the 2011 Annual
Meeting of Stockholders, each of the non-employee directors received a grant of 7,500 RSUs in accordance with the above-described program. These RSUs will vest in full on April 23, 2012, the date of the 2012 Annual Meeting of Stockholders.

 In December 2011, the Board of Directors, upon recommendation of the Management Organization & Compensation Committee, revised this
program so that the non-employee directors receive an annual grant of RSUs for a number of shares equal to the lesser of (i) shares valued at $15,000 on the date of grant, or (ii) 15,000 shares. 

Other 
 The Company
reimburses its directors for reasonable expenses incurred in attending Board and Committee meetings.

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