SEC Contract Filing

Filing Date: 2019-01-04

Document Content:
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<TYPE>EX-10.6
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<FILENAME>d685276dex106.htm
<DESCRIPTION>EX-10.6
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.6 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CONCHO RESOURCES INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2015 STOCK INCENTIVE PLAN </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PERFORMANCE UNIT AWARD AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>JANUARY&nbsp;2, 2019 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">To:&nbsp;&nbsp;&nbsp;&nbsp;<B>[Jack Harper][Will Giraud]</B> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Concho Resources Inc., a Delaware corporation (the &#147;<B><I><U>Company</U></I></B>&#148;), is pleased to grant you an award (the
&#147;<B><I><U>Award</U></I></B>&#148;) consisting of an aggregate of &lt;shares_awarded&gt; performance units (each, a &#147;<B><I><U>Performance</U></I></B><B><U> </U></B><B><I><U>Unit</U></I></B>&#148;) that have a performance period beginning on
January&nbsp;1, 2019 through December&nbsp;31, 2023 (the &#147;<B><I><U>Performance</U></I></B><B><U> </U></B><B><I><U>Period</U></I></B>&#148;). The Award is subject to your acceptance of and agreement to all the applicable terms, conditions and
restrictions described in this Performance Unit Award Agreement (this &#147;<B><I><U>Agreement</U></I></B>&#148;) and the Concho Resources Inc. 2015 Stock Incentive Plan (as such plan may be amended or restated thereafter from time to time, the
&#147;<B><I><U>Plan</U></I></B>&#148;). A copy of the Plan is available upon request. To the extent that any provision of this Agreement conflicts with the expressly applicable terms of the Plan, you acknowledge and agree that those terms of the
Plan shall control and, if necessary, the applicable provisions of this Agreement shall be deemed amended so as to carry out the purpose and intent of the Plan. Terms that have their initial letters capitalized, but that are not otherwise defined in
this Agreement, shall have the meanings given to them in the Plan in effect as of the date of this Agreement (such date the &#147;<B><I><U>Date of Grant</U></I></B>&#148;). The Performance Units contemplated herein are granted as Performance Awards
under the Plan and are subject to the award limitations applicable to awards denominated in shares of the Company&#146;s common stock (the &#147;<B><I><U>Common</U></I></B><B><U> </U></B><B><I><U>Stock</U></I></B>&#148;) that are set forth in
Paragraph V(a) of the Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Agreement sets forth the terms of the agreement between you and the Company with respect to the
Performance Units. By accepting this Agreement, you agree to be bound by all of the terms hereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Overview of Performance Units</U></B>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Performance Units Generally</U>. Each Performance Unit represents a contractual right to receive one share of
Common Stock, subject to the terms and conditions of this Agreement; provided that, based on the achievement of the performance objective outlined in Section&nbsp;2 hereof (the &#147;<B><I><U>Performance</U></I></B><B><U>
</U></B><B><I><U>Objective</U></I></B>&#148;), the number of shares of Common Stock that may be deliverable hereunder in respect of the Performance Units may range from 0% to 300% of the number of Performance Units stated in the preamble to this
Agreement (such stated number of Performance Units hereafter called the &#147;<B><I><U>Initial</U></I></B><B><U> </U></B><B><I><U>Performance</U></I></B><B><U> </U></B><B><I><U>Units</U></I></B>&#148;). Your right to receive Common Stock in respect
of Performance Units is generally contingent, in whole or in part, upon (i)&nbsp;the achievement of the Performance Objective and (ii)&nbsp;except as provided in Section&nbsp;4(a) or Section&nbsp;5 hereof, your continued employment with the Company
through the end of the Vesting Period. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;<U>Dividend Equivalents</U>. With respect to each outstanding
Performance Unit, the Company shall credit a book entry account with an amount equal to the amount of any cash dividend paid during the Performance Period on one share of Common Stock. The amount credited to such book entry account shall be payable
to you at the same time or times, and subject to the same terms and conditions as are applicable to, your Performance Units; provided that, if more than the Initial Performance Units shall become payable in accordance with this Agreement, then the
maximum amount payable in respect of such dividend equivalents shall be the amount credited to your book entry account. Dividends and