as the Borrower,
as Administrative Agent, Swing Line Lender
and
L/C Issuer,
as Syndication Agent
as Documentation Agents
and
BANC OF AMERICA SECURITIES LLC,
as
Joint Lead Arrangers and Joint Book Managers
Page | |||||||||||
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS | 3 | ||||||||||
1.01 | Defined Terms | 3 | |||||||||
1.02 | Other Interpretive Provisions | 27 | |||||||||
1.03 | Accounting Terms | 27 | |||||||||
1.04 | Rounding | 27 | |||||||||
1.05 | Times of Day | 28 | |||||||||
1.06 | Letter of Credit Amounts | 28 | |||||||||
1.07 | Classifications of Loans and Borrowings | 28 | |||||||||
1.08 | Oil and Gas Definitions | 28 | |||||||||
ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS | 28 | ||||||||||
2.01 | Revolving Loans | 28 | |||||||||
2.02 | Loans and Borrowings | 28 | |||||||||
2.03 | Requests for Revolving Borrowings | 29 | |||||||||
2.04 | Letters of Credit | 30 | |||||||||
2.05 | Swing Line Loans | 34 | |||||||||
2.06 | Funding of Borrowings | 35 | |||||||||
2.07 | Interest Elections | 35 | |||||||||
2.08 | Termination or Reduction of Commitments; Reduction of Borrowing Base | 37 | |||||||||
2.09 | Repayment of Loans | 37 | |||||||||
2.10 | Optional Prepayment of Loans | 38 | |||||||||
2.11 | Mandatory Prepayment of Loans | 38 | |||||||||
2.12 | Fees | 39 | |||||||||
2.13 | Interest | 40 | |||||||||
2.14 | Alternate Rate of Interest | 41 | |||||||||
2.15 | Increased Costs | 42 | |||||||||
2.16 | Break Funding Payments | 43 | |||||||||
2.17 | Taxes | 43 | |||||||||
2.18 | Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 44 | |||||||||
2.19 | Mitigation Obligations; Replacement of Lenders | 46 | |||||||||
ARTICLE III BORROWING BASE AND CONFORMING BORROWING BASE | 47 |
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Page | |||||||||||
3.01 | Initial Borrowing Base and Initial Conforming Borrowing Base | 47 | |||||||||
3.02 | Scheduled Redeterminations of the Borrowing Base; Procedures and Standards | 47 | |||||||||
3.03 | Special Redeterminations | 49 | |||||||||
3.04 | Notice of Redetermination | 49 | |||||||||
3.05 | Special 2006 Redetermination | 49 | |||||||||
ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS | 49 | ||||||||||
4.01 | Conditions of Initial Credit Extension | 49 | |||||||||
4.02 | Conditions to all Credit Extensions | 52 | |||||||||
ARTICLE V REPRESENTATIONS AND WARRANTIES | 53 | ||||||||||
5.01 | Existence, Qualification and Power; Compliance with Laws | 53 | |||||||||
5.02 | Authorization; No Contravention | 53 | |||||||||
5.03 | Governmental Authorization; Other Consents | 54 | |||||||||
5.04 | Binding Effect | 54 | |||||||||
5.05 | Financial Statements; No Material Adverse Effect | 54 | |||||||||
5.06 | Litigation | 54 | |||||||||
5.07 | No Default | 55 | |||||||||
5.08 | Ownership of Property; Liens | 55 | |||||||||
5.09 | Environmental Compliance | 55 | |||||||||
5.10 | Insurance | 55 | |||||||||
5.11 | Taxes | 55 | |||||||||
5.12 | ERISA Compliance | 55 | |||||||||
5.13 | Subsidiaries; Equity Interests | 56 | |||||||||
5.14 | Margin Regulations; Investment Company Act | 56 | |||||||||
5.15 | Disclosure | 56 | |||||||||
5.16 | Compliance with Laws | 57 | |||||||||
5.17 | Licenses, Permits and Franchises | 57 | |||||||||
5.18 | Liens Under the Security Instruments | 57 | |||||||||
5.19 | Mortgages with Respect to Borrowing Base Properties | 57 | |||||||||
5.20 | Solvency | 57 |
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(continued)
Page | |||||||||||
5.21 | Direct Benefit | 57 | |||||||||
ARTICLE VI AFFIRMATIVE COVENANTS | 58 | ||||||||||
6.01 | Financial Statements | 58 | |||||||||
6.02 | Certificates; Other Information | 59 | |||||||||
6.03 | Notices | 61 | |||||||||
6.04 | Payment of Obligations | 61 | |||||||||
6.05 | Preservation of Existence, Etc | 62 | |||||||||
6.06 | Maintenance of Properties | 62 | |||||||||
6.07 | Maintenance of Insurance | 62 | |||||||||
6.08 | Compliance with Laws | 62 | |||||||||
6.09 | Books and Records | 62 | |||||||||
6.10 | Inspection Rights | 62 | |||||||||
6.11 | Use of Proceeds | 63 | |||||||||
6.12 | Additional Guarantors | 63 | |||||||||
6.13 | Operations | 63 | |||||||||
6.14 | Delivery of Title Opinions | 64 | |||||||||
6.15 | Minimum Hedging | 64 | |||||||||
6.16 | Further Assurances | 64 | |||||||||
ARTICLE VII NEGATIVE COVENANTS | 65 | ||||||||||
7.01 | Liens | 65 | |||||||||
7.02 | Investments | 66 | |||||||||
7.03 | Indebtedness | 67 | |||||||||
7.04 | Fundamental Changes | 67 | |||||||||
7.05 | Dispositions | 68 | |||||||||
7.06 | Restricted Payments | 69 | |||||||||
7.07 | Change in Nature of Business | 69 | |||||||||
7.08 | Transactions with Affiliates | 69 | |||||||||
7.09 | Burdensome Agreements | 69 | |||||||||
7.10 | Use of Proceeds | 70 | |||||||||
7.11 | Financial Covenants | 70 |
-iii-
(continued)
Page | |||||||||||
7.12 | Swap Contracts | 70 | |||||||||
7.13 | Limitation on Sale/Leasebacks | 71 | |||||||||
7.14 | Disqualified Stock | 71 | |||||||||
ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES | 71 | ||||||||||
8.01 | Events of Default | 71 | |||||||||
8.02 | Remedies Upon Event of Default | 73 | |||||||||
8.03 | Application of Funds | 73 | |||||||||
8.04 | Production Proceeds | 74 | |||||||||
ARTICLE IX ADMINISTRATIVE AGENT | 75 | ||||||||||
9.01 | Appointment and Authority | 75 | |||||||||
9.02 | Rights as a Lender | 75 | |||||||||
9.03 | Exculpatory Provisions | 75 | |||||||||
9.04 | Reliance by Administrative Agent | 76 | |||||||||
9.05 | Delegation of Duties | 77 | |||||||||
9.06 | Resignation of Administrative Agent | 77 | |||||||||
9.07 | Non-Reliance on Administrative Agent and Other Lenders | 77 | |||||||||
9.08 | No Other Duties, Etc | 78 | |||||||||
9.09 | Administrative Agent May File Proofs of Claim | 78 | |||||||||
9.10 | Collateral and Guaranty Matters | 78 | |||||||||
ARTICLE X MISCELLANEOUS | 79 | ||||||||||
10.01 | Amendments, Etc | 79 | |||||||||
10.02 | Notices; Effectiveness; Electronic Communication | 80 | |||||||||
10.03 | No Waiver; Cumulative Remedies | 82 | |||||||||
10.04 | Expenses; Indemnity; Damage Waiver | 82 | |||||||||
10.05 | Payments Set Aside | 84 | |||||||||
10.06 | Successors and Assigns | 84 | |||||||||
10.07 | Treatment of Certain Information; Confidentiality | 87 | |||||||||
10.08 | Right of Setoff | 88 | |||||||||
10.09 | Interest Rate Limitation | 89 | |||||||||
10.10 | Counterparts; Integration; Effectiveness | 89 |
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(continued)
Page | |||||||||||
10.11 | Survival of Representations and Warranties | 89 | |||||||||
10.12 | Severability | 89 | |||||||||
10.13 | [Reserved] | 90 | |||||||||
10.14 | Governing Law; Jurisdiction; Etc | 90 | |||||||||
10.15 | Waiver of Jury Trial | 91 | |||||||||
10.16 | Hedging Agreements and Collateral | 91 | |||||||||
10.17 | USA PATRIOT Act Notice | 91 | |||||||||
10.18 | ENTIRE AGREEMENT | 91 |
-v-
SCHEDULES | ||||
1.01 Security Instruments | ||||
1.02 Existing Swap Contracts | ||||
2.01 Commitments and Applicable Percentages | ||||
5.06 Litigation | ||||
5.13 Subsidiaries, Other Equity Investments; Equity Interests in the Borrower | ||||
7.01 Existing Liens | ||||
7.03 Existing Indebtedness | ||||
10.02 Administrative Agent’s Office; Certain Addresses for Notices | ||||
EXHIBITS | ||||
Form of | ||||
A Note | ||||
B Compliance Certificate | ||||
C Assignment and Assumption | ||||
D Guaranty | ||||
E Solvency Certificate | ||||
F Mortgage (without exhibits) | ||||
G Pledge Agreement | ||||
H Counterpart Agreement |
-vi-
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Borrowing | Eurodollar | |||||||||||
Base Usage | Spread | ABR Spread | Commitment Fee | |||||||||
³110% | 2.25 | % | 1.25 | % | 0.50 | % | ||||||
>100% and <110% | 2.00 | % | 1.00 | % | 0.50 | % | ||||||
³90% and£100% | 1.75 | % | 0.75 | % | 0.50 | % | ||||||
³75% and <90% | 1.50 | % | 0.50 | % | 0.375 | % | ||||||
³50% and <75% | 1.25 | % | 0.25 | % | 0.375 | % | ||||||
<50% | 1.00 | % | 0.00 | % | 0.25 | % |
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CONCHO RESOURCES INC., a Delaware corporation | ||||
By: | /s/ Curt F. Kamradt | |||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer |
-94-
JPMORGAN CHASE BANK, N.A., as Administrative Agent | ||||
By: | /s/ Wm. Mark Cranmer | |||
Name: | Wm. Mark Cranmer | |||
Title: | Vice President | |||
JPMORGAN CHASE BANK, N.A., as a Lender, L/C Issuer and Swing Line Lender | ||||
By: | /s/ Wm. Mark Cranmer | |||
Name: | Wm. Mark Cranmer | |||
Title: | Vice President |
-95-
BANK OF AMERICA, N.A., as Syndication Agent and a Lender | ||||
By: | /s/ Jeffrey H. Rathkamp | |||
Name: | Jeffrey H. Rathkamp | |||
Title: | Principal |
-96-
BNP PARIBAS, as a Documentation Agent and a Lender | ||||
By: | /s/ Brian Malone | |||
Name: | Brian Malone | |||
Title: | Managing Director | |||
By: | /s/ Russell Otts | |||
Name: | Russell Otts | |||
Title: | Vice President |
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WACHOVIA BANK, NATIONAL ASSOCIATION, as a Documentation Agent and a Lender | ||||
By: | /s/ Russell Clingman | |||
Name: | Russell Clingman | |||
Title: | Director |
-98-
BANK OF SCOTLAND, as a Lender | ||||
By: | /s/ Karen Weich | |||
Name: | Karen Weich | |||
Title: | Assistant Vice President |
-99-
THE FROST NATIONAL BANK, as a Lender | ||||
By: | /s/ John S. Warren | |||
Name: | John S. Warren | |||
Title: | Senior Vice President | |||
-100-
1. | Mortgage, Line of Credit Mortgage, Deed of Trust, Assignment, Security Agreement and Financing Statement, dated as of February 24, 2006, from COG Oil & Gas LP, a Texas limited partnership, as Mortgagor, to Wm. Mark Cranmer, as Trustee, and JPMorgan Chase Bank, N.A., as Administrative Agent. | |
2. | Guaranty from the Initial Guarantors. |
3. | Pledge Agreements dated February 24, 2006, from each of the Loan Parties listed below in column A, respectively, as Pledgor, to JPMorgan Chase Bank, N.A., as Administrative Agent, pledging such Loan Party’s interest in its respective Restricted Subsidiaries, each as set forth opposite such Loan Party’s name in column B, below: |
Column A (Obligor) | Column B (Assets Pledged) | |
the Borrower | Concho Equity Holdings Corp. — all shares (approximately 98%) of common stock owned by the Borrower | |
Concho Equity Holdings Corp. | COG Operating LLC — 100% membership interests Concho LP LLC — 100% membership interests COG Realty LLC — 100% membership interests | |
COG Operating LLC | COG Oil & Gas LP — 1% general partner interest Concho Energy Services LLC — 100% membership interests |
Crude Oil | ||||||
(1) | Internal Reference: Counterparty: | 06-01 BNP Paribas | Floating price is Commodity Business Day monthly average of closing NYMEX price. Settlement due 5th business day following month end. | |||
Counterparty Deal #: | Put: 75249 Call: 75249 | |||||
Trade Date: Start Date: Maturity Date: Index: Volume: Settlement: Ceiling Price: Floor Price: | 12/17/04 1/1/06 12/31/06 NYMEX Crude Oil 700 bbls per day Monthly $42.65/bbl. $39.25/bbl. | |||||
(2) | Internal Reference: Counterparty: | 07-01 Bank of America | Floating price is Commodity Business Day monthly average of closing NYMEX price. Settlement due 5th business day following month end. | |||
Counterparty Deal #: | Put: 409237 Call: 409238 | |||||
Trade Date: Start Date: Maturity Date: Index: Volume: Settlement: Ceiling Price: Floor Price: | 12/17/04 1/1/07 12/31/07 NYMEX Crude Oil 650 bbls per day Monthly $41.75/bbl. $37.95/bbl. | |||||
Natural Gas | ||||||
(1) | Internal Reference: Counterparty: | 06-02 BNP Paribas | Floating price is first of the month Inside FERC Gas Market Report. Settlement due 5th business day after the publishing of the Inside FERC Report. | |||
Counterparty Deal #: | Put: 74780 Call: 74780 | |||||
Trade Date: Start Date: Maturity Date: Index: Volume: Settlement: Ceiling Price: Floor Price: | 12/8/04 1/1/06 12/31/06 Inside FERC — EPNG Permian Basin 4,000 MMBtu/day Monthly $6.45/MMBtu $5.28/MMBtu | |||||
(2) | Internal Reference: Counterparty: | 07-02 Bank of America | Floating price is first of the month Inside FERC Gas Market Report. Settlement due 5th business day after the publishing of the Inside FERC Report. | |||
Counterparty Deal #: | Put: 408236 Call: 408237 | |||||
Trade Date: Start Date: Maturity Date: Index: | 12/8/04 1/1/07 12/31/07 | |||||
Volume: | 3,500 MMBtu/day |
Settlement: Ceiling Price: Floor Price: | Monthly $6.02/MMBtu $5.00/MMBtu |
AND APPLICABLE PERCENTAGES
Applicable | ||||||||
Lender | Commitment | Percentage | ||||||
JPMorgan Chase Bank, N.A. | $ | 122,500,000.00 | 25.7894737 | % | ||||
Bank of America, N.A. | $ | 122,500,000.00 | 25.7894737 | % | ||||
BNP Paribas | $ | 75,000,000.00 | 15.7894737 | % | ||||
Wachovia Bank, National Association | $ | 75,000,000.00 | 15.7894737 | % | ||||
Bank of Scotland | $ | 50,000,000.00 | 10.5263158 | % | ||||
The Frost National Bank | $ | 30,000,000.00 | 6.3157895 | % | ||||
Total | $ | 475,000,000.00 | 100.000000000 | % |
AND EQUITY INTERESTS IN THE BORROWER
1. | Contract Operating Agreement among COG Oil & Gas, COG GP and Mack Energy Corporation. | |
2. | Salt Water Disposal Well Ownership and Operating Agreement among COG Oil & Gas, COG GP, Mack Energy Corporation, Chase Oil Corporation, and others. | |
3. | The Combination Agreement and the ancillary agreements referred to therein. |
CERTAIN ADDRESSES FOR NOTICES
550 W. Texas, Suite 1300
Midland, Texas 79701
Attention: Curt F. Kamradt
Telephone: (432) 683-7443
Telecopier: (432) 683-7441
Electronic Mail: ckamradt@conchoresources.com
(for payments and Requests for Credit Extensions):
Mail Code IL1-0010
21 South Clark Street
Chicago, Illinois 60670
Attn: Teresita R. Siao
Telephone: (312) 385-7051
Telecopier: (312) 385-7096
Electronic Mail: teresita.r.siao@jpmchase.com
Account Number: 9008109962
ABA: 021000021
Mail Code IL-0010
21 South Clark Street
Chicago, Illinois 60670
Attn: Teresita R. Siao
Telephone: (312) 385-7051
Telecopier: (312) 385-7096
Electronic Mail: teresita.r.siao@jpmchase.com
1717 Main Street
Dallas, Texas 75201
Attn: Wm. Mark Cranmer
Telephone: 214-290-2212
Telecopier: 214-290-2332
Electronic Mail: mark.cranmer@chase.com
Mail Code IL-0010
21 South Clark Street
Chicago, Illinois 60670
Attn: Teresita R. Siao
Telephone: (312) 385-7051
Telecopier: (312) 385-7096
Electronic Mail: teresita.r.siao@jpmchase.com
Mail Code IL1-0010
21 South Clark Street
Chicago, Illinois 60670
Attn: Teresita R. Siao
Telephone: (312) 385-7051
Telecopier: (312) 385-7096
Electronic Mail: teresita.r.siao@jpmchase.com
Account Number: 9008109962
ABA: 021000021
CONCHO RESOURCES, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Amount of | Outstanding | |||||||||||||||||||||||
End of | Principal or | Principal | ||||||||||||||||||||||
Type of | Amount of | Interest | Interest Paid | Balance | Notation | |||||||||||||||||||
Date | Loan Made | Loan Made | Period | This Date | This Date | Made By | ||||||||||||||||||
CONCHO RESOURCES, INC. | |||||
By: | |||||
Name: | |||||
Title: | |||||
to the Compliance Certificate
($ in 000’s)
I. | Section 7.11 (a) -Consolidated Leverage Ratio. |
A. | Consolidated Funded Indebtedness at Statement Date: | $ | ||||
B. | Consolidated EBITDAX for Subject Period: | $ | ||||
C. | Consolidated Leverage Ratio (Line I.A¸ Line I.B): | to 1 | ||||
Maximum permitted: 3.50 to 1.00 |
II. | Section 7.11 (b) — Current Ratio. |
A. | Consolidated Current Assets: | $ | ||||
B. | Consolidated Current Liabilities: | $ | ||||
C. | Consolidated Current Ratio (Line II.A¸ Line II.B): | to 1 | ||||
Minimum permitted: 1.00 to 1.00 |
to the Compliance Certificate
($ in 000’s)
(in accordance with the definition of Consolidated EBITDAX
as set forth in the Agreement)
Twelve | ||||||||||||||||||||
Consolidated | Quarter | Quarter | Quarter | Quarter | Months | |||||||||||||||
EBITDAX | Ended | Ended | Ended | Ended | Ended | |||||||||||||||
Consolidated Net Income | ||||||||||||||||||||
+ Consolidated Interest Charges | ||||||||||||||||||||
+ income and franchise taxes | ||||||||||||||||||||
+ depletion expense | ||||||||||||||||||||
+ depreciation expense | ||||||||||||||||||||
+ amortization expense | ||||||||||||||||||||
+ exploration expense | ||||||||||||||||||||
+ non-cash expenses | ||||||||||||||||||||
- income tax credits | ||||||||||||||||||||
- non-cash income | ||||||||||||||||||||
= Consolidated EBITDAX |
1. | Assignor: | |
2. | Assignee: [and is an Affiliate/Approved Fund of [identify Lender]2] | |
3. | Borrower(s): |
1 | Include all applicable subfacilities. | |
2 | Select as applicable. |
4. | Administrative Agent: JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement |
5. | Credit Agreement: Credit Agreement, dated as of February [ ], 2006, among Concho Resources Inc., the Lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, L/C Issuer, and Swing Line Lender, and BNP Paribas and Wachovia Bank, National Association, as Documentation Agents. |
Aggregate | ||||||||||||||||
Amount of | Amount of | Percentage Assigned | ||||||||||||||
Commitment/Loans | Commitment/Loans | of | CUSIP Number | |||||||||||||
Facility Assigned4 | for all Lenders5 | Assigned5 | Commitment/Loans6 | (if any) | ||||||||||||
$ | $ | % | ||||||||||||||
$ | $ | % | ||||||||||||||
$ | $ | % | ||||||||||||||
7. | [Trade Date: _______________]7 |
3 | The reference to “Loans” in the table should be used only if the Credit Agreement provides for Term Loans. | |
4 | Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g. “Revolving Credit Commitment”, “Term Loan Commitment”, etc.). | |
5 | Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. | |
6 | Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. | |
7 | To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. |
ASSIGNOR [NAME OF ASSIGNOR] | ||||
By: | ||||
Title: | ||||
ASSIGNEE [NAME OF ASSIGNEE] | ||||
By: | ||||
Title: | ||||
[Consented to and]8 Accepted: JPMORGAN CHASE BANK, N.A., as Administrative Agent | ||||
By: | ||||
Title: | ||||
[Consented to:]9 | ||||
By: | ||||
Title: | ||||
8 | To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. | |
9 | To be added only if the consent of the Borrower and/or other parties (e.g. Swing Line Lender, L/C Issuer) is required by the terms of the Credit Agreement. |
1 | Describe Credit Agreement at option of Administrative Agent. |
DEFINITIONS
GUARANTY PROVISIONS
REPRESENTATIONS AND WARRANTIES
LIMITATION ON OBLIGATIONS
Page 8
Page 9
MISCELLANEOUS PROVISIONS
Page 10
Page 11
Page 12
Page 13
INITIAL GUARANTORS: | CONCHO EQUITY HOLDINGS CORP. | |||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG OPERATING LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG OIL & GAS LP | ||||
By: | COG Operating LLC, its sole general partner | |||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG REALTY LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
CONCHO ENERGY SERVICES LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer |
Notice information for all Initial Guarantors: | ||||
Address: | 550 W. Texas, Suite 1300 Midland, Texas 79701 | |||
Attention: | Curt F. Kamradt | |||
Telephone: | (432) 683-7443 | |||
Telecopy: | (432) 683-7441 | |||
with a copy to: | ||||
David Copeland | ||||
Address: | 550 W. Texas, Suite 1300 Midland, Texas 79701 | |||
Telephone: | (432) 683-7443 | |||
Telecopy: | (432) 683-7441 |
DATED: February [ ], 2006 CONCHO RESOURCES, INC., a Delaware corporation | ||||
By: | ||||
Chief Financial Officer | ||||
ASSIGNMENT, SECURITY AGREEMENT AND FINANCING STATEMENT
a Texas limited partnership,
(Taxpayer I.D. No. 14-1913261)
(Organizational I.D. No. 800364009)
as Administrative Agent
Page 1
Gardere Wynne Sewell LLP
1601 Elm Street, Suite 3000
Dallas, Texas 75201
Page 2
ASSIGNMENT, SECURITY AGREEMENT AND FINANCING STATEMENT
Page 3
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OF THE MORTGAGOR
Page 9
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MORTGAGOR: | ||||
COG OIL & GAS LP By: COG Operating LLC, its sole general partner | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG Oil & Gas LP 550 W. Texas, Suite 1300 Midland, TX 79701 Attention: Curt F. Kamradt Telephone: (432) 683-7443 Telecopy: (432) 683-7441 | ||||
with a copy to: | ||||
COG Oil & Gas LP 550 W. Texas, Suite 1300 Midland, TX 79701 Attention: David W. Copeland Telephone: (432) 683-7443 Telecopy: (432) 683-7441 |
550 W. Texas, Suite 1300
Midland, TX 79701
Attention: Curt F. Kamradt, Vice President
STATE OF TEXAS | § | |
§ | ||
COUNTY OF DALLAS | § |
Notary Public, State of Texas | ||||
Security Agreement and Financing Statement, dated February 24, 2006, from
COG OIL & GAS LP, as Mortgagor, to
WM. MARK CRANMER, as Trustee, and
JPMORGAN CHASE BANK, N.A., as Administrative Agent
Page 1
DEFINITIONS
Page 2
PLEDGE
Page 3
Page 4
Page 5
REPRESENTATIONS AND WARRANTIES
Page 6
Page 7
COVENANTS
Page 8
Page 9
Page 10
Page 11
ADMINISTRATIVE AGENT
Page 12
REMEDIES
Page 13
Page 14
Page 15
MISCELLANEOUS PROVISIONS
Page 16
Page 17
Page 18
Page 19
CONCHO RESOURCES INC. | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
CONCHO EQUITY HOLDINGS CORP. | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG OPERATING LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG OIL & GAS LP By: COG Operating LLC, its sole general partner | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer |
COG REALTY LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
CONCHO ENERGY SERVICES, LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
Notice information for all Pledgors: |
Address: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 | ||
Attention: | Curt F. Kamradt | |
Telephone: | (432) 683-7443 | |
Telecopy: | (432) 683-7441 | |
with a copy to: | ||
David Copeland | ||
Address: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 | ||
Telephone: | (432) 683-7443 | |
Telecopy: | (432) 683-7441 |
JPMORGAN CHASE BANK, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
Notice information for Administrative Agent: JPMorgan Chase Bank, N.A. Mail Code IL-0634 21 South Clark Street Chicago, Illinois 60670 Telephone: Telecopy: | ||||
with a copy to: | ||||
JPMorgan Chase Bank, N.A. Mail Code TX1-2448 1717 Main Street Dallas, Texas 75201 Attn: Wm. Mark Cranmer Telephone: 214-290-2212 Telecopy: 214-290-2332 |
Dated: February ___, 2006 CONCHO EQUITY HOLDINGS CORP. | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer |
COG OPERATING LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
CONCHO LP LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG OIL & GAS LP | ||||
By: | COG Operating LLC, its sole general partner | |||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
COG REALTY LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
CONCHO ENERGY SERVICES, LLC | ||||
By: | ||||
Name: | Curt F. Kamradt | |||
Title: | Vice President and Chief Financial Officer | |||
Address: | 550 W. Texas, Suite 1300 | |||
Midland, Texas 79701 | ||||
Attention: | Curt F. Kamradt | |||
Telephone: | (432) 683-7443 | |||
Telecopy: | (432) 683-7441 | |||
$_________ | February [___], 2006 |
A-1
[Name of Maker] | ||||
By: | ||||
Title: | ||||
Pay to the order of [Name of Payee] | ||||
By: | ||||
Title: |
A-2
Amount of | Amount of Principal | Outstanding | Notation | |||||||||||||
Date | Intercompany Loan | Payment | Principal Balance | Made By | ||||||||||||
A-3
to Pledge Agreement
Stock | % of Shares of | |||||||||||||||
Type of | Shares Owned by | Pledgor | ||||||||||||||
Pledged Share Issuer | Stock | Pledgor | Pledgor | Pledged | ||||||||||||
Concho Holdings | Common | Borrower | Between 97% and 100% | 100 | % | |||||||||||
Concho Holdings | Preferred | Borrower | Between 97% and 100% | 100 | % |
Pledged Note Issuer | Description | |||
None |
% of Interests | ||||||||||||||||
Interests | Interests Owned by | of Pledgor | ||||||||||||||
Pledged Interests Issuer | Type of Interest | Pledgor | Pledgor | Pledged | ||||||||||||
COG GP | Limited Liability Company Membership | Concho Holdings | 100 | % | 100 | % | ||||||||||
Concho LP LLC, a Delaware limited liability company | Limited Liability Company Membership | Concho Holdings | 100 | % | 100 | % | ||||||||||
COG Realty | Limited Liability Company Membership | Concho Holdings | 100 | % | 100 | % |
% of Interests | ||||||||||||||||
Interests | Interests Owned by | of Pledgor | ||||||||||||||
Pledged Interests Issuer | Type of Interest | Pledgor | Pledgor | Pledged | ||||||||||||
Concho Energy | Limited Liability Company Membership | COG GP | 100 | % | 100 | % | ||||||||||
COG Oil & Gas | General Partnership Interest | COG GP | 1 | % | 100 | % |
to Pledge Agreement
[PLEDGOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
to Pledge Agreement
Pledgor: | CONCHO RESOURCES INC. | |
State of Organization: | Delaware | |
Organizational ID Number: | 4094844 | |
Federal ID Number: | 76-0818600 | |
Principal Place of Business: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 | ||
Pledgor: | CONCHO EQUITY HOLDINGS CORP. | |
State of Organization: | Delaware | |
Organizational ID Number: | 3793531 | |
Federal ID Number: | 37-1488902 | |
Principal Place of Business: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 | ||
Pledgor: | COG OPERATING LLC | |
State of Organization: | Delaware | |
Organizational ID Number: | 3793530 | |
Federal ID Number: | 61-1469854 | |
Principal Place of Business: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 | ||
Pledgor: | COG REALTY LLC | |
State of Organization: | Texas | |
Organizational ID Number: | 800411215 | |
Federal ID Number: | 84-1661959 |
Principal Place of Business: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 | ||
Pledgor: | CONCHO ENERGY SERVICES LLC | |
State of Organization: | Texas | |
Organizational ID Number: | 800570024 | |
Federal ID Number: | 74-3158759 | |
Principal Place of Business: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 | ||
Pledgor: | COG OIL & GAS LP | |
State of Organization: | Texas | |
Organizational ID Number: | 800364536 | |
Federal ID Number: | 14-1913261 | |
Principal Place of Business: | 550 W. Texas, Suite 1300 | |
Midland, Texas 79701 |
[NAME OF SUBSIDIARY] | ||||
By | ||||
Name: | ||||
Title: | ||||
Address for Notices: | ||||||
Attention: | ||||||
Telecopier: | ||||||
with a copy to: | ||||||
Attention: | ||||||
Telecopier: | ||||||
ACKNOWLEDGED AND ACCEPTED, as of the date above first written: JPMORGAN CHASE BANK, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||