FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND LIMITED WAIVER

Exhibit 10.1

FIFTH AMENDMENT TO AMENDED AND RESTATED
CREDIT AGREEMENT AND LIMITED WAIVER

     THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND LIMITED WAIVER (this “Amendment”) dated as of December 7, 2010, is by and among Concho Resources Inc., a Delaware corporation (the “Borrower”), 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 Administrative Agent and the Lenders entered into that certain Amended and Restated Credit Agreement dated as of July 31, 2008 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

     WHEREAS, the Borrower has requested that the Administrative Agent and the Required Lenders (a) amend the Credit Agreement in certain respects and (b) waive the reductions of the Borrowing Base and the Conforming Borrowing Base relating to the issuance of any Senior Notes from the date hereof until the next Scheduled Redetermination of the Borrowing Base, and the Administrative Agent and the Required 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 Administrative Agent and the Required Lenders, hereby agree as follows:

SECTION 1. Amendments to Credit Agreement. Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 3, 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 Additional Definitions. Section 1.01 of the Credit Agreement shall be and it hereby is amended by inserting the following definitions in the appropriate alphabetical order:

     “Fifth Amendment Effective Date” means December 7, 2010.

     “Permian Basin Sale” means the sale by the Borrower or any Restricted Subsidiary of the oil and gas properties described in that certain Purchase and Sale Agreement, dated November 5, 2010, by and between COG Operating LLC and Legacy Reserves Operating LP; provided, that (a) such sale is consummated on or prior to the next Scheduled Redetermination of the Borrowing Base after the Fifth Amendment Effective Date, (b) the consideration received in respect of such sale shall be equal to or greater than the fair market value of the properties

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sold and (c) such Purchase and Sale Agreement is not amended or otherwise modified to include a material amount of additional oil and gas properties to be sold thereunder unless otherwise consented to by the Administrative Agent.

     1.2 Indebtedness Under Senior Notes. Section 7.03(f) of the Credit Agreement shall be and it hereby is amended in its entirety to read as follows:

     (f) subject to any adjustment to the Borrowing Base and Conforming Borrowing Base required under Section 3.05, unsecured Indebtedness of the Borrower evidenced by unsecured senior notes or unsecured senior subordinated notes and Guarantees thereof in an aggregate principal amount not to exceed $900,000,000 at any time outstanding (“Senior Notes”) and any Permitted Refinancing of any Indebtedness incurred under this clause (f); provided that (i) at the time of and immediately after giving effect to each issuance of such Senior Notes or any Permitted Refinancing thereof, no Default shall have occurred and be continuing, (ii) the final stated maturity date of such Senior Notes is not earlier than the first anniversary after the Maturity Date (as in effect on the date of issuance of such Senior Notes), (iii) the non-default stated interest rate of such Senior Notes shall be consistent with market terms for issuers of similar size and credit quality at the time of issuance, (iv) no scheduled principal amortization is required under such Senior Notes prior to the stated maturity of such Senior Notes and (v) such Senior Notes are evidenced by an indenture and related documents containing terms and conditions, covenants and events of default that are customary for similar notes and that are, in each case, reasonably satisfactory to the Administrative Agent; and

     1.3 Certain Dispositions. Section 7.05 of the Credit Agreement shall be and it hereby is amended by inserting the following at the end of such Section:

Notwithstanding anything to the contrary in clause (b) of this Section 7.05, the Permian Basin Sale shall be excluded for purposes of determining compliance with clause (b) of this Section 7.05.

SECTION 2. Limited Waiver of Senior Notes Adjustment. Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 3 of this Amendment, the Required Lenders hereby waive the adjustments to the Borrowing Base and Conforming Borrowing Base required under Section 3.05 of the Credit Agreement with respect to any Senior Notes issued by the Borrower pursuant to Section 7.03(f) of the Credit Agreement (as amended by this Amendment) during the period from the effective date of this Amendment to but excluding the Redetermination Date of the next Scheduled Redetermination of the Borrowing Base and the Conforming Borrowing Base. The Borrower agrees that nothing herein shall be construed as a continuing waiver of the provisions of Section 3.05 of the Credit Agreement or of a waiver of Section 7.03(f) or any other provision of the Credit Agreement or any other Loan Document. The waiver provided in this Section 2 is a limited one-time waiver, and nothing contained herein shall obligate any Lender to grant any additional or future waiver or consent with respect to Section 3.05 of the Credit Agreement or any other provision of the Credit Agreement or any other Loan Document.

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

     3.1 Execution and Delivery. Each Loan Party and the Required 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 No Default. No Default shall have occurred and be continuing.

     3.3 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 Required Lenders to enter into this Amendment, the Borrower hereby represents and warrants to the Required Lenders as follows:

     4.1 Reaffirmation of Representations and Warranties/Further Assurances. After giving effect to the amendments contained herein, each representation and warranty of the Borrower or any Guarantor contained in the Credit Agreement or in any other Loan Document is true and correct in all material respects on the date of this Amendment (except to the extent such representations and warranties relate solely to an 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 approval, consent or action by or in respect of, or filing with, any court or agency of government.

     4.3 Enforceability. This Amendment constitutes the valid and binding obligation of the Borrower 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 Loan Documents shall, except as amended and modified hereby, remain in full force and effect. The Borrower 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, except as expressly provided herein, the Liens granted by it securing the payment and performance thereof. The execution, delivery and effectiveness of this Amendment shall not

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operate as a waiver of any right, power or remedy of any Lender, the L/C Issuer or the Administrative Agent under any of the Loan 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 Required Lenders, 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 law of the State of Texas.

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

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     IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to Amended and Restated Credit Agreement and Limited Waiver to be duly executed as of the date first above written.

	BORROWER:
	CONCHO RESOURCES INC., a Delaware corporation
	By:	/s/ Xxxxx X. Xxxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxxx
		Title:	Senior Vice President, Chief Financial Officer and Treasurer

Signature Page

	JPMORGAN CHASE BANK, N.A., as Administrative Agent
	By:	/s/ Xxxx X. Xxxxx
		Xxxx X. Xxxxx
		Authorized Officer
	JPMORGAN CHASE BANK, N.A., as a Lender, L/C Issuer and Swing Line Lender
	By:	/s/ Xxxx X. Xxxxx
		Xxxx X. Xxxxx
		Authorized Officer

Signature Page

	BANK OF AMERICA, N.A., as Syndication Agent and a Lender
	By:	/s/ Xxxxxxx X. Xxxxxxxx
		Name:	Xxxxxxx X. Xxxxxxxx
		Title:	Managing Director

Signature Page

	BNP PARIBAS, as a Co-Documentation Agent and a Lender
	By:	/s/ Xxxxxx Xxxxxx
		Name:	Xxxxxx Xxxxxx
		Title:	Director
	By:	/s/ Mei Xxx Xxxx
		Name:	Mei Xxx Xxxx
		Title:	Director

Signature Page

	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, f/k/a CALYON (NEW YORK BRANCH), as a Co-Documentation Agent and a Lender
	By:	/s/ Xxx Xxxxxxxx
		Name:	Xxx Xxxxxxxx
		Title:	Managing Director
	By:	/s/ Xxxxxxx Xxxxxx
		Name:	Xxxxxxx Xxxxxx
		Title:	Managing Director

Signature Page

	ING CAPITAL LLC, as a Co-Documentation Agent and a Lender
	By:	/s/ Xxxxxxx Xxxx
		Name:	Xxxxxxx Xxxx
		Title:	Managing Director

Signature Page

	SCOTIABANC INC., as a Lender
	By:	/s/ X. Xxxxxxxxx
		Name:	X. Xxxxxxxxx
		Title:	Director

Signature Page

	UNION BANK, N.A., as a Lender
	By:	/s/ Xxxxxx Xxxxx
		Name:	Xxxxxx Xxxxx
		Title:	Vice President

Signature Page

	BANK OF SCOTLAND plc, as a Lender
	By:	/s/ Xxxxx X. Xxxxxxxx
		Name:	Xxxxx X. Xxxxxxxx
		Title:	Assistant Vice President

Signature Page

	COMPASS BANK, as a Lender
	By:	/s/ Xxxxxxxx X. Xxxxx
		Name:	Xxxxxxxx X. Xxxxx
		Title:	Senior Vice President

Signature Page

	KEY BANK NATIONAL ASSOCIATION, as a Lender
	By:	/s/ Xxxxx Xxxxxx
		Name:	Xxxxx Xxxxxx
		Title:	Vice President

Signature Page

	U.S. BANK NATIONAL ASSOCIATION, as a Lender
	By:	/s/ Xxxxx X. Xxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxx
		Title:	Vice President

Signature Page

	XXXXX FARGO BANK, N.A., as a Lender
	By:	/s/ Xxxxxx X. Xxxxxxx, Xx.
		Name:	Xxxxxx X. Xxxxxxx, Xx.
		Title:	Vice-President and Portfolio Manager

Signature Page

	SUMITOMO MITSUI BANKING CORPORATION, as a Lender
	By:	/s/ Xxxxxxx X. Xxxx
		Name:	Xxxxxxx X. Xxxx
		Title:	General Manager

Signature Page

	NATIXIS (formerly Natexis Banques Populaires), as a Lender
	By:	/s/ Xxxxxxx X. Xxxxxxxxx
		Xxxxxxx X. Xxxxxxxxx
		Managing Director
	By:	/s/ Xxxxx X. Xxxxxxx, III
		Xxxxx X. Xxxxxxx, III
		Managing Director

Signature Page

	SUNTRUST BANK, as a Lender
	By:	/s/ Xxxxxxx X. Xxxxxxxx
		Name:	Xxxxxxx X. Xxxxxxxx
		Title:	Vice President

Signature Page

	STERLING BANK, as a Lender
	By:	/s/ Xxxx Xxxxxx
		Name:	Xxxx Xxxxxx
		Title:	Senior Vice President

Signature Page

	BANK OF TEXAS, N.A., as a Lender
	By:	/s/ Xxxxxxx Xxxxx
		Name:	Xxxxxxx Xxxxx
		Title:	Vice President

Signature Page

	CITIBANK, N.A. (formerly Citibank Texas, N.A.), as a Lender
	By:	/s/ Xxxx X. Xxxxxxxx
		Name:	Xxxx X. Xxxxxxxx
		Title:	Vice President

Signature Page

	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender
	By:	/s/ Xxxxx Xxxxxxx
		Name:	Xxxxx Xxxxxxx
		Title:	Director
	By:	/s/ Xxxxxx Xxxxxxx
		Name:	Xxxxxx Xxxxxxx
		Title:	Director

Signature Page

	THE FROST NATIONAL BANK, as a Lender
	By:	/s/ Xxxx Xxxxxxxx
		Name:	Xxxx Xxxxxxxx
		Title:	Vice President

Signature Page

	BANK OF MONTREAL, as a Lender
	By:	/s/ Xxxxxx Xxxxxxxx
		Name:	Xxxxxx Xxxxxxxx
		Title:	Director

Signature Page

	BARCLAYS BANK PLC, as a Lender
	By:	/s/ Xxx Xxxxxx
		Name:	Xxx Xxxxxx
		Title:	Director

Signature Page

	THE ROYAL BANK OF SCOTLAND plc, as a Lender
	By:	/s/ Xxxx Xxxxxxx, Xx.
		Name:	Xxxx Xxxxxxx, Xx.
		Title:	Vice President

Signature Page

	UBS LOAN FINANCE LLC, as a Lender
	By:	/s/ Xxxx X. Xxxxx
		Name:	Xxxx X. Xxxxx
		Title:	Associate Director
	By:	/s/ Xxxx X. Xxxx
		Name:	Xxxx X. Xxxx
		Title:	Associate Director

Signature Page

	CAPITAL ONE, N.A., as a Lender
	By:	/s/ Xxxxx X. Xxxxx
		Name:	Xxxxx X. Xxxxx
		Title:	Senior Vice President

Signature Page

	CIBC, INC., as a Lender
	By:	/s/ Xxxxx X. Xxxxxx
		Name:	Xxxxx X. Xxxxxx
		Title:	Authorized Signatory
	By:	/s/ Xxxx Xxxxxxx
		Name:	Xxxx Xxxxxxx
		Title:	Authorized Signatory

Signature Page

	COMERICA BANK, as a Lender
	By:	/s/ Xxxxx X. Xxxxxx
		Name:	Xxxxx X. Xxxxxx
		Title:	Vice President

Signature Page

	XXXXXXX XXXXX BANK USA, as a Lender
	By:	/s/ Xxxxxx Xxx
		Name:	Xxxxxx Xxx
		Title:	Authorized Signatory

Signature Page

	REGIONS BANK, as a Lender
	By:	/s/ Xxxxx X. Xxxxxx III
		Name:	Xxxxx X. Xxxxxx III

Signature Page

	ROYAL BANK OF CANADA, as a Lender
	By:	/s/ Xxx X. XxXxxxxxxxx
		Name:	Xxx X. XxXxxxxxxxx
		Title:	Authorized Signatory

Signature Page

	SOCIETE GENERALE, as a Lender
	By:	/s/ Xxxxx X. Xxxxxx
		Name:	Xxxxx X. Xxxxxx
		Title:	Director

Signature Page

	ALLIED IRISH BANKS PLC, as a Lender
	By:	/s/ Xxxx Xxxxxxxx
		Name:	Xxxx Xxxxxxxx
		Title:	SVP
	By:	/s/ Xxxxxx Xxxx
		Name:	Xxxxxx Xxxx
		Title:	EVP

Signature Page

	AMEGY BANK, N.A., as a Lender
	By:	/s/ Xxxxx X. Xxxxxxxxx, III
		Name:	Xxxxx X. Xxxxxxxxx, III
		Title:	AVP

Signature Page

	CREDIT SUISSE AG, CAYMAN ISLANDS as a Lender
	By:	/s/ Xxx Xxxxxx
		Name:	Xxx Xxxxxx
		Title:	Vice President
	By:	/s/ Xxxxx Xxxxxx
		Name:	Xxxxx Xxxxxx
		Title:	Associate

Signature Page

CONSENT AND REAFFIRMATION

     The undersigned (each a “Guarantor”) hereby (i) acknowledges receipt of a copy of the foregoing Fifth Amendment to Amended and Restated Credit Agreement and Limited Waiver (the “Fifth Amendment”); (ii) consents to the Borrower’s execution and delivery thereof; (iii) agrees to be bound thereby; (iv) affirms that nothing contained therein shall modify in any respect whatsoever its guaranty of the obligations of the Borrower to Lenders pursuant to the terms of its Guaranty in favor of Agent and the Lenders (the “Guaranty”) or the Liens granted by it securing payment and performance thereunder and (v) reaffirms that the Guaranty and such Liens are and shall continue to remain in full force and effect. Although each Guarantor has been informed of the matters set forth herein and has acknowledged and agreed to same, each Guarantor understands that the Lenders have no obligation to inform any Guarantor of such matters in the future or to seek any Guarantor’s acknowledgment or agreement to future amendments or waivers for its Guaranty to remain in full force and effect, and nothing herein shall create such duty or obligation.

     IN WITNESS WHEREOF, the undersigned has executed this Consent and Reaffirmation on and as of the date of this Fifth Amendment.

	GUARANTORS:
	COG OPERATING LLC, a Delaware limited liability company
	By:	/s/ Xxxxx X. Xxxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxxx
		Title:	Senior Vice President, Chief Financial Officer and Treasurer
	COG REALTY LLC, a Texas limited liability company
	By:	/s/ Xxxxx X. Xxxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxxx
		Title:	Senior Vice President, Chief Financial Officer and Treasurer

Consent and Reaffirmation

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	CONCHO ENERGY SERVICES LLC, a Texas limited liability company
	By:	/s/ Xxxxx X. Xxxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxxx
		Title:	Senior Vice President, Chief Financial Officer and Treasurer
	QUAIL RANCH LLC, a Texas limited liability company
	By:	/s/ Xxxxx X. Xxxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxxx
		Title:	Senior Vice President, Chief Financial Officer and Treasurer
	COG HOLDINGS LLC
	By:	/s/ Xxxxx X. Xxxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxxx
		Title:	Senior Vice President - Chief Financial Officer and Treasurer
	CONCHO OIL & GAS LLC
	By:	/s/ Xxxxx X. Xxxxxxxxxx
		Name:	Xxxxx X. Xxxxxxxxxx
		Title:	Senior Vice President - Chief Financial Officer and Treasurer
	COG EXCHANGE PROPERTIES LLC By: PSI 1031, LLC, its sole member
	By:	/s/ Xxxxx Xxxxxxx
		Name:	Xxxxx Xxxxxxx
		Title:	Vice President

Consent and Reaffirmation

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