Common use of Common Stock Legend Clause in Contracts

Common Stock Legend. (a) In addition to any other legend that may be required by law, each certificate for Earned Shares shall bear a legend in substantially the following form: THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE THEREWITH. THIS SECURITY IS ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE STOCKHOLDERS’ AGREEMENT DATED AS OF FEBRUARY 27, 2006, BY AND AMONG THE COMPANY AND CERTAIN SECURITYHOLDERS AND/OR THE RESTRICTED STOCK AGREEMENT DATED AS OF JUNE 1, 2006, AS AMENDED OR RESTATED FROM TIME TO TIME, COPIES OF EACH OF WHICH MAY BE OBTAINED UPON REQUEST FROM CONCHO RESOURCES INC. OR ANY SUCCESSOR THERETO. (b) If any Earned Shares cease to be subject to any and all restrictions on Transfer set forth in this Exhibit, the Company shall, upon the written request of the holder thereof, issue to such holder a new certificate evidencing such Earned Shares without the second sentence of the legend set forth above endorsed thereon.

Common Stock Legend. (a) In addition to any other legend that may be required by law, each certificate for Earned Option Shares shall bear a legend in substantially the following form: THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE THEREWITH. THIS SECURITY IS ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE STOCKHOLDERS’ AGREEMENT DATED AS OF FEBRUARY 27, 2006, BY AND AMONG THE COMPANY AND CERTAIN SECURITYHOLDERS AND/OR THE RESTRICTED STOCK OPTION AGREEMENT DATED AS OF JUNE 112, 2006, AS AMENDED OR RESTATED FROM TIME TO TIME, COPIES OF EACH OF WHICH MAY BE OBTAINED UPON REQUEST FROM CONCHO RESOURCES INC. OR ANY SUCCESSOR THERETO. (b) If any Earned Option Shares cease to be subject to any and all restrictions on Transfer set forth in this Exhibit, the Company shall, upon the written request of the holder thereof, issue to such holder a new certificate evidencing such Earned Option Shares without the second sentence of the legend set forth above endorsed thereon.

Common Stock Legend. (a) In addition to any other legend that may be required by law, each certificate for Earned Shares shall bear a legend in substantially the following form: THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE THEREWITH. THIS SECURITY IS ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE STOCKHOLDERS’ AGREEMENT DATED AS OF FEBRUARY 27, 2006, BY AND AMONG THE COMPANY AND CERTAIN SECURITYHOLDERS AND/OR THE RESTRICTED STOCK AGREEMENT DATED AS OF JUNE 1___, 2006, AS AMENDED OR RESTATED FROM TIME TO TIME, COPIES OF EACH OF WHICH MAY BE OBTAINED UPON REQUEST FROM CONCHO RESOURCES INC. OR ANY SUCCESSOR THERETO. (b) If any Earned Shares cease to be subject to any and all restrictions on Transfer set forth in this Exhibit, the Company shall, upon the written request of the holder thereof, issue to such holder a new certificate evidencing such Earned Shares without the second sentence of the legend set forth above endorsed thereon.