Underwriting Agreement



 Exhibit 10.1 

$750,000,000 

EXCO Resources, Inc. 

7.500% Senior Notes due 2018 

Underwriting Agreement 

September 10, 2010 
 J.P.
Morgan Securities LLC 
 As Representative of the 

several Underwriters listed 

in Schedule 1 hereto 

c/o J.P. Morgan Securities LLC 
 383 Madison
Avenue 
 New York, New York 10179 

Ladies and Gentlemen: 
 EXCO
Resources, Inc., a Texas corporation (the “Company”), proposes to issue and sell to the several Underwriters listed in Schedule 1 hereto (the “Underwriters”), for whom you are acting as representative (the
“Representative”), $750,000,000 principal amount of its 7.500% Senior Notes due 2018 (the “Securities”). The Securities will be issued pursuant to an Indenture and the Supplemental Indenture to be dated as of September 15,
2010 (collectively, the “Indenture”) among the Company, the guarantors listed in Schedule 2 hereto (the “Guarantors”) and Wilmington Trust Company, as trustee (the “Trustee”), and will be guaranteed on an unsecured
senior basis by each of the Guarantors (the “Guarantees”). 
 Each of the Company and the Guarantors hereby confirms
its agreement with the several Underwriters concerning the purchase and sale of the Securities, as follows: 
 1.
Registration Statement. The Company has prepared and filed with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Securities Act”), a automatic shelf registration statement on Form S-3 (File No. 333-169253), including a prospectus, relating to the Securities. Such registration statement, as amended at the time it becomes
effective, including the information, if any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to be part of the registration statement at the time of its effectiveness (“Rule 430 Information”), is referred to herein as
the “Registration Statement”; and as used herein, the term “Preliminary Prospectus” means each prospectus included in such registration statement (and any amendments thereto) before it becomes effective, any prospectus filed with
the Commission pursuant to Rule 424(a) under the Securities Act and the prospectus included in the Registration Statement at the time of its effectiveness that omits Rule 430 Information, and the term “Prospectus” means the prospectus in
the form first used (or made available upon request of purchasers pursuant to Rule 173 under the Securities Act) in connection with confirmation of sales of the Securities. If the Company has filed an abbreviated registration statement pursuant to
Rule 462(b) under the Securities Act (the “Rule 462 Registration Statement”), then any reference herein to the term “Registration Statement” shall be deemed to include such Rule 462 Registration Statement. Any reference in this
Agreement to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the
effective date of the Registration Statement or the date of such Preliminary Prospectus or the Prospectus, as the case may be and any reference to “amend”, “amendment” or “supplement” with respect to the Registration
Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include any documents filed after such date under the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Exchange Act”) that are deemed to be incorporated by reference therein. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Registration Statement and the Prospectus.

  

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 At or prior to the time when sales of the Securities were first made (the “Time of
Sale”), the Company had prepared the following information (collectively, the “Time of Sale Information”): a Preliminary Prospectus dated September 7, 2010, and each “free-writing prospectus” (as defined pursuant to
Rule 405 under the Securities Act) listed on Annex B hereto as constituting part of the Time of Sale Information. 
 2.
Purchase of the Securities by the Underwriters. (a) The Company agrees to issue and sell the Securities to the several Underwriters as provided in this Agreement, and each Underwriter, on the basis of the representations, warranties and
agreements set forth herein and subject to the conditions set forth herein, agrees, severally and not jointly, to purchase from the Company the respective principal amount of Securities set forth opposite such Underwriter’s name in Schedule 1
hereto at a price equal to 96.78% of the principal amount thereof plus accrued interest, if any, from September 15, 2010 to the Closing Date (as defined below). The Company will not be obligated to deliver any of the Securities except upon
payment for all the Securities to be purchased as provided herein. 
 (b) Each of the Company and the Guarantors hereby
understands that the Underwriters intend to make a public offering of the Securities as soon after the effectiveness of this Agreement as in the judgment of the Representative is advisable, and initially to offer the Securities on the terms set
forth in the Prospectus. Each of the Company and the Guarantors acknowledges and agrees that the Underwriters may offer and sell Securities to or through any affiliate of an Underwriter and that any such affiliate may offer and sell Securities
purchased by it to or through any Underwriter. 
  

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 (c) Payment for and delivery of the Securities will be made at the offices of Simpson
Thacher & Bartlett LLP, 425 Lexington Avenue, New York, New York, at 10:00 A.M., New York City time, on September 15, 2010, or at such other time or place on the same or such other date, not later than the fifth business day thereafter, as
the Representative and the Company may agree upon in writing. The time and date of such payment and delivery is referred to herein as the “Closing Date”. 

(d) Payment for the Securities shall be made by wire transfer in immediately available funds to the account(s) specified by the Company
to the Representative against delivery to the nominee of The Depository Trust Company, for the account of the Underwriters, of one or more global notes representing the Securities (collectively, the “Global Note”), with any transfer taxes
payable in connection with the sale of the Securities duly paid by the Company. The Global Note will be made available for inspection by the Representative not later than 1:00 P.M., New York City time, on the business day prior to the Closing Date.

 (e) Each of the Company and the Guarantors acknowledges and agrees that the Underwriters are acting solely in the capacity of
an arm’s length contractual counterparty to the Company and the Guarantors with respect to the offering of Securities contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a
fiduciary to, or an agent of, the Company, the Guarantors or any other person. Additionally, neither the Representative nor any other Underwriter is advising the Company, the Guarantors or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. The Company and the Guarantors shall consult with their own advisors concerning such matters and shall be responsible for making their own independent investigation and appraisal of the
transactions contemplated hereby, and the Underwriters shall have no responsibility or liability to the Company or the Guarantors with respect thereto. Any review by the Underwriters of the Company, the Guarantors, the transactions contemplated
hereby or other matters relating to such transactions will be performed solely for the benefit of the Underwriters and shall not be on behalf of the Company or the Guarantors. 

3. Representations and Warranties of the Company and the Guarantors. The Company and the Guarantors jointly and severally
represent and warrant to each Underwriter that: 
 (a) Preliminary Prospectus. No stop order preventing or suspending the
use of any Preliminary Prospectus has been issued by the Commission, and each Preliminary Prospectus, at the time of filing thereof, complied in all material respects with the Securities Act and did not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that neither the Company nor any
of the Guarantors make any representation and warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to any Underwriter furnished to the Company in writing by such Underwriter through
the Representative expressly for use in any Preliminary Prospectus. 
  

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 (b) Time of Sale Information. The Time of Sale Information, at the Time of Sale did
not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that neither the Company nor any of the Guarantors make any representation and warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to any Underwriter furnished to the
Company in writing by such Underwriter through the Representative expressly for use in such Time of Sale Information. No statement of material fact included in the Prospectus has been omitted from the Time of Sale Information and no statement of
material fact included in the Time of Sale Information that is required to be included in the Prospectus has been omitted therefrom. 

(c) Issuer Free Writing Prospectus. The Company (including its agents and representatives, other than the Underwriters in their
capacity as such) has not prepared, made, used, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to any “written communication” (as defined in Rule 405 under the Securities Act) that
constitutes an offer to sell or solicitation of an offer to buy the Securities (each such communication by the Company or its agents and representatives (other than a communication referred to in clauses (i) (ii) and (iii) below) an
“Issuer Free Writing Prospectus”) other than (i) any document not constituting a prospectus pursuant to Section 2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act, (ii) the Preliminary Prospectus,
(iii) the Prospectus, (iv) the documents listed on Annex B hereto as constituting the Time of Sale Information and (v) any electronic road show or other written communications, in each case approved in writing in advance by the
Representative. Each such Issuer Free Writing Prospectus complied in all material respects with the Securities Act, has been or will be (within the time period specified in Rule 433) filed in accordance with the Securities Act (to the extent
required thereby) and, when taken together with the Preliminary Prospectus filed prior to the first use of such Issuer Free Writing Prospectus, did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that neither the Company nor any of the Guarantors make any representation and
warranty with respect to any statements or omissions made in each such Issuer Free Writing Prospectus in reliance upon and in conformity with information relating to any Underwriter furnished to the Company in writing by such Underwriter through the
Representative expressly for use in any Issuer Free Writing Prospectus. 
  

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 (d) Registration Statement and Prospectus. The Registration Statement is an
“automatic shelf registration statement” as defined under Rule 405 of the Securities Act that has been filed with the Commission not earlier than three years prior to the date hereof; and no notice of objection of the Commission to the use
of such registration statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has been received by the Company. No stop order suspending the effectiveness of the Registration Statement has been issued by
the Commission and no proceeding for that purpose or pursuant to Section 8A of the Securities Act against the Company or related to the offering has been initiated or, to the knowledge of the Company, threatened by the Commission; as of the
applicable effective date of the Registration Statement and any amendment thereto, the Registration Statement complied and will comply in all material respects with the Securities Act and the Trust Indenture Act of 1939, as amended, and the rules
and regulations of the Commission thereunder (collectively, the “Trust Indenture Act”), and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading; and as of the date of the Prospectus and any amendment or supplement thereto and as of the Closing Date, the Prospectus will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that neither the Company nor any of the Guarantors make
any representation and warranty with respect to (i) that part of the Registration Statement that constitutes the Statement of Eligibility and Qualification (Form T-1) of the Trustee under the Trust Indenture Act or (ii) any statements or
omissions made in reliance upon and in conformity with information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representative expressly for use in the Registration Statement and the Prospectus and
any amendment or supplement thereto. 
 (e) Incorporated Documents. The documents incorporated by reference in the
Registration Statement, the Prospectus and the Time of Sale Information, when they were filed with the Commission conformed in all material respects to the requirements of the Exchange Act, of 1934, as amended, and the rules and regulation of the
Commission thereunder (collectively, the “Exchange Act”) and none of such documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the Registration Statement, the Prospectus or the Time of Sale Information, when such
documents become effective or are filed with the Commission, as the case may be, will conform in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

 

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 (f) Financial Statements. The financial statements of the Company included or
incorporated by reference in the Registration Statement, the Time of Sale Information and the Prospectus, together with the related notes and schedules, comply in all material respects with the applicable requirements of the Securities Act and the
Exchange Act, as applicable, and present fairly in all material respects the consolidated financial position of the Company as of the dates indicated and the consolidated results of operations and cash flows of the Company and its subsidiaries for
the periods specified and have been prepared in compliance in all material respects with the requirements of the Exchange Act and in conformity with generally accepted accounting principles (“GAAP”) applied on a consistent basis during the
periods involved (except, with respect to any unaudited financial statements, for the absence of customary year end adjustments) and the supporting schedules included or incorporated by reference in the Registration Statement present fairly the
information required to be stated therein. The other financial and accounting data included or incorporated by reference in the Registration Statement, the Time of Sale Information and the Prospectus, have been derived from the accounting records of
the Company and present fairly the information shown therein, in all material respects; and the pro forma financial information and the related notes thereto included or incorporated by reference in the Registration Statement, the Time
of Sale Information and the Prospectus have been prepared in accordance with the applicable requirements of the Securities Act and the Exchange Act, as applicable, and the assumptions underlying such pro forma financial information are
reasonable and are set forth in the Registration Statement, the Time of Sale Information and the Prospectus. 
 (g) No
Material Adverse Change. Since the date of the most recent financial statements of the Company included or incorporated by reference in the Registration Statement, the Time of Sale Information and the Prospectus, and except as may be otherwise
stated or incorporated by reference in the Registration Statement, the Time of Sale Information and the Prospectus, there has not been (A) any change in the capital stock or material change in the long-term debt of the Company or any of its
subsidiaries, or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock, or any material adverse change, or any development involving a prospective material adverse change,
financial or otherwise, in or affecting in the business, properties, prospects, regulatory environment, results of operations or condition (financial or otherwise) of the Company and its subsidiaries, taken as a whole, except for (i) the
exercise of outstanding stock options pursuant to equity incentive plans as such equity incentive plans are disclosed in the Registration Statement, the Time of Sale Information and the Prospectus, (ii) the Company’s declaration of a $0.04
per share dividend on August 5, 2010 and the payment of such dividend, and (iii) any purchases of shares by the Company pursuant to the share repurchase program announced by the Company on July 19, 2010 as such share repurchase
program is described in the Registration Statement, the Time of Sale Information and the Prospectus, (B) any transaction entered into by the Company or any of its subsidiaries, which is material to the Company and its subsidiaries, taken as a
whole, or (C) any obligation, contingent or otherwise, directly or indirectly, incurred by the Company or any of its subsidiaries, which is material to the Company and its subsidiaries, taken as a whole, and (D) except, as would not
reasonably be expected to have, individually or in the aggregate, have a Material Adverse Effect (defined below) on the Company and its subsidiaries taken as a whole, none of the Company or any of its subsidiaries has sustained any loss or
interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory
authority. 
  

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 (h) Organization and Good Standing. The Company, each of its subsidiaries and each of
the entities in which the Company, directly or indirectly, owns fifty-percent (50%) or less (the “Joint Ventures”) have been duly organized and are validly existing and in good standing under the laws of their respective jurisdictions
of organization, are duly qualified to do business and are in good standing in each jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and have all company
power and authority necessary to own or hold their respective properties and to conduct the businesses in which they are engaged, except where the failure to be so qualified, in good standing or have such power or authority would not, individually
or in the aggregate, have a material adverse effect on the business, properties, management, financial position, results of operations or prospects of the Company and its subsidiaries taken as a whole or on the performance by the Company or the
Guarantors of their obligations under the Securities and the Guarantees, respectively (a “Material Adverse Effect”). The Company does not own an interest in or control, directly or indirectly, any corporation, association or other entity
other than the subsidiaries and the Joint Ventures listed on Schedule 3 of this Agreement. 
 (i) Capitalization. The
Company has an authorized capitalization as set forth in the Registration Statement, the Time of Sale Information and the Prospectus under the heading “Capitalization” and all the outstanding shares of capital stock or other equity
interests of each subsidiary of the Company and the Company’s interest in the Joint Ventures have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear
of any lien, charge, encumbrance, security interest, restriction on voting or transfer or any other claim of any third party, except in connection with the Company’s Credit Agreement, dated April 30, 2010 (as amended), among JPMorgan Chase
Bank, N.A., as Administrative Agent, and J.P. Morgan Securities LLC, as Sole Book runner and Lead Arranger, Wells Fargo Securities, LLC, as Co-Lead Arranger, Bank of America, N.A. and BNP Paribas, as Co-Lead Arrangers and Co-Syndication Agents,
Royal Bank of Canada, as Co-Lead Arranger and Co-Documentation Agent, Wells Fargo Bank, National Association, as Co-Documentation Agent and the other lenders thereto (the “Credit Agreement”). 

(j) Due Authorization. Each of the Company and the Guarantors has full right, power and authority to execute and deliver this
Agreement, the Securities and the Indenture (including the Guarantees set forth therein) (collectively, the “Transaction Documents”), to the extent it is a party thereto and to perform its respective obligations hereunder and thereunder;
and all action required to be taken for the due and proper authorization, execution and delivery of each of the Transaction Documents to which it is a party and the consummation by each of them of the transactions contemplated thereby has been duly
and validly taken. 
  

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 (k) The Indenture. The Indenture has been duly authorized by the Company and each of
the Guarantors and upon effectiveness of the Registration Statement was, or will have been, duly qualified under the Trust Indenture Act and, when duly executed and delivered in accordance with its terms by each of the parties thereto, will
constitute a valid and legally binding agreement of the Company and each of the Guarantors enforceable against the Company and each of the Guarantors in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability (collectively, the “Enforceability
Exceptions”). 
 (l) The Securities and the Guarantees. The Securities have been duly authorized by the Company and,
when duly executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided herein, will constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their
terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture; and the Guarantees have been duly authorized by each of the Guarantors and, when the Securities have been duly executed, authenticated, issued
and delivered as provided in the Indenture and paid for as provided herein, will be valid and legally binding obligations of each of the Guarantors, enforceable against each of the Guarantors in accordance with their terms, except that the
enforceability is subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture. 
 (m)
Underwriting Agreement. This Agreement has been duly authorized, executed and delivered by the Company and each of the Guarantors. 

(n) Descriptions of the Transaction Documents. Each Transaction Document conforms in all material respects to the description
thereof contained in the Registration Statement, the Time of Sale Information and the Prospectus. 
 (o) No Violation or
Default. Neither the Company nor any of its subsidiaries is (i) in violation of its charter or by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries
is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject, or (iii) in violation of any law or statute or any judgment, order, rule or
regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would not, individually or in the aggregate, have a Material Adverse
Effect and, in the case of clause (ii), for defaults pursuant to the Credit Agreement, which will be amended or consented to prior to the Closing Date. 
  

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 (p) No Conflicts. The execution, delivery and performance by the Company and each of
the Guarantors of each of the Transaction Documents to which it is a party, the issuance and sale of the Securities (including the Guarantees) and compliance by the Company and each of the Guarantors with the terms thereof and the consummation of
the transactions contemplated by the Transaction Documents will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a
party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject, (ii) result in any violation of the provisions of the charter or by-laws or
similar organizational documents of the Company or any of its subsidiaries, or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority,
except, in the case of clauses (i) and (iii) above, for any such conflict, breach, violation or default that would not, individually or in the aggregate, have a Material Adverse Effect and, in the case of clause (i), for defaults pursuant
to the Credit Agreement, which will be amended or consented to prior to the Closing Date. 
 (q) No Consents Required. No
approval, authorization, consent or order of or filing with any federal, state, local or foreign governmental or regulatory, commission, board, body, authority or agency, or of or with the rules of the New York Stock Exchange, or approval of the
shareholders of the Company or its subsidiaries, is required in connection with the execution, delivery and performance by the Company and each of the Guarantors of each of the Transaction Documents to which it is a party the issuance and sale by
the Company of the Securities and the issuance of the Guarantees or the consummation of the transactions as contemplated hereby and by the Transaction Documents, except for the registration of the Securities under the Securities Act, the
qualification of the Indenture under the Trust Indenture Act and such consents, approvals, authorizations, orders and registrations or qualifications as may be required under (i) applicable state securities laws in connection with the purchase,
offer and distribution of the Securities by the Underwriters and (ii) the Credit Agreement, which will be received prior to the Closing Date. 

(r) Legal Proceedings. Except as described in the Registration Statement, the Time of Sale Information and the Prospectus, there
are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to which the Company or any of its subsidiaries is or may be a party or to which any property of the Company or any of its subsidiaries is or may be the
subject that, individually or in the aggregate, if determined adversely to the Company or any of its subsidiaries, could reasonably be expected to have a Material Adverse Effect; no such investigations, actions, suits or proceedings are, to the
knowledge of the Company and each of the Guarantors, threatened or contemplated by any governmental or regulatory authority or other parties; and (i) there are no current or pending legal, governmental or regulatory actions, suits or
proceedings that are required under the Securities Act to be described in the Registration Statement or the Prospectus that are not so described in the Registration Statement, the Time of Sale Information and the Prospectus and (ii) there are
no statutes, regulations or contracts or other documents that are required under the Securities Act to be filed as exhibits to the Registration Statement or described in the Registration Statement or the Prospectus that are not so filed as exhibits
to the Registration Statement or described in the Registration Statement, the Time of Sale Information and the Prospectus. 
  

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 (s) Independent Accountants. KPMG, LLP, who has certified certain financial
statements of the Company and its subsidiaries, was at the time of such certification an independent registered public accounting firm with respect to the Company and its subsidiaries, as required by the Securities Act and the Exchange Act, and the
applicable published rules and regulations thereunder. 
 (t) Title to Real and Personal Property. The Company and each
of its subsidiaries have good and marketable title to all material property (real and personal), or has valid rights to lease or otherwise use, all material items of real and personal property that are material to the respective businesses of the
Company and its subsidiaries described or incorporated by reference in the Registration Statement, the Time of Sale Information and the Prospectus as being owned by each of them, free and clear of all liens, claims, security interests or other
encumbrances except those that (i) do not materially interfere with the use made and proposed to be made of such property by the Company and its subsidiaries, (ii) could not reasonably be expected, individually or in the aggregate, to have
a Material Adverse Effect or (iii) were placed on such property in connection with the Credit Agreement and the organizational documents of the Company’s 50% or less owned joint ventures. 

(u) Title to Intellectual Property. The Company and its subsidiaries own or possess adequate rights to use all material patents,
patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) necessary for the conduct of their respective businesses; and the conduct of their respective businesses will not conflict in any material respect with any such rights of others, and the Company and its
subsidiaries have not received any notice of any claim of infringement or conflict with any such rights of others. 
 (v)
Investment Company Act. Neither the Company nor any of its subsidiaries is and, after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Registration Statement, the Time of
Sale Information and the Prospectus, none of them will be an “investment company” or an entity “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules
and regulations of the Commission thereunder (collectively, “Investment Company Act”). 
 (w) Taxes. The
Company and its subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required to be paid or filed through the date hereof, except for any failure to pay such taxes or file such returns that would not,
individually or in the aggregate, have a Material Adverse Effect; and except as otherwise disclosed in the Registration Statement, the Time of Sale Information and the Prospectus, there is no material tax deficiency that has been, or could
reasonably be expected to be, asserted against the Company or any of its subsidiaries or any of their respective properties or assets. 
  

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 (x) Licenses and Permits. The Company and its subsidiaries possess all licenses,
certificates, permits and other authorizations issued by, and have made all filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary for the ownership or lease of their respective
properties or the conduct of their respective businesses as described in the Registration Statement, the Time of Sale Information and the Prospectus, except where the failure to possess or make the same would not, individually or in the aggregate,
have a Material Adverse Effect; and except as described in the Registration Statement, the Time of Sale Information and the Prospectus, neither the Company nor any of its subsidiaries has received notice of any revocation or modification of any such
license, certificate, permit or authorization, except for any revocation or modification or failure to renew that would not, individually or in the aggregate, have a Material Adverse Effect. 

(y) No Labor Disputes. Neither the Company nor its subsidiaries are involved in any labor dispute with their respective employees
nor, to the knowledge of the Company, is any such dispute threatened except, in each case, for disputes which would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 

(z) Compliance With Environmental Laws. (i) The Company and its subsidiaries (x) are in compliance with any and all
applicable federal, state, local and foreign laws, rules, regulations, requirements, decisions and orders relating to the protection of human health or safety, the environment, natural resources, hazardous or toxic substances or wastes, pollutants
or contaminants (collectively, “Environmental Laws”); (y) have received and are in compliance with all permits, licenses, certificates or other authorizations or approvals required of them under applicable Environmental Laws to
conduct their respective businesses; and (z) have not received notice of any actual or potential liability under or relating to any Environmental Laws, including for the investigation or remediation of any disposal or release of hazardous or
toxic substances or wastes, pollutants or contaminants, and have no knowledge of any event or condition that would reasonably be expected to result in any such notice; and (ii) there are no costs or liabilities associated with Environmental
Laws of or relating to the Company or its subsidiaries, except in the case of each of (i) and (ii) above, for any such failure to comply, or failure to receive required permits, licenses or approvals, or cost or liability, as would not,
individually or in the aggregate, have a Material Adverse Effect; and (iii) except as described in each of the Time of Sale Information and the Prospectus, (x) there are no proceedings that are pending, or that are known to be
contemplated, against the Company or any of its subsidiaries under any Environmental Laws in which a governmental entity is also a party, other than such proceedings regarding which it is reasonably believed no monetary sanctions of $100,000 or more
will be imposed, and (y) the Company and its subsidiaries are not aware of any issues regarding compliance with Environmental Laws, or liabilities or other obligations under Environmental Laws or concerning hazardous or toxic substances or
wastes, pollutants or contaminants, that could reasonably be expected to have a material adverse effect on the capital expenditures, earnings or competitive position of the Company and its subsidiaries, and (z) none of the Company and its
subsidiaries anticipates material capital expenditures relating to any Environmental Laws. 
  

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 (aa) Compliance With ERISA. (i) Each employee benefit plan, within the meaning
of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Company or any member of its “Controlled Group” (defined as any organization which is a member of a controlled group
of companies within the meaning of Section 414 of the Internal Revenue Code of 1986, as amended (the “Code”)) has or could have any liability (each, a “Plan”) has been maintained in compliance with its terms and the
requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has
occurred with respect to any Plan excluding transactions effected pursuant to a statutory, administrative or other applicable exemption; (iii) no Plan that is subject to the funding rules of Sections 412 or 430 of the Code or Section 302
of ERISA has failed to satisfy the minimum funding standards applicable to such Plan, whether or not waived, and no such Plan has been determined to be, or is reasonably expected to be, in “at risk” status (within the meaning of
Section 430 of the Code or Section 303 of ERISA); (iv) the fair market value of the assets of each Plan equals or exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used to fund
such Plan); (v) no “reportable event” (within the meaning of Section 4043(c) of ERISA) has occurred or is reasonably expected to occur; and (vi) neither the Company nor any member of its Controlled Group has incurred, nor
reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the PBGC, in the ordinary course and without default) in respect of a Plan (including a “multiemployer plan,” within
the meaning of Section 4001(a)(3) of ERISA). 
 (bb) Disclosure Controls. The Company maintains an effective system
of “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is designed to ensure that material information required to be disclosed by the Company, including its consolidated subsidiaries, in reports
that it files or submits under the Exchange Act is recorded, processed, summarized and reported as required under the Exchange Act within the time periods specified in the Commission’s rules and forms, including controls and procedures designed
to ensure that such information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure. The Company has carried out evaluations of the effectiveness of its disclosure
controls and procedures as required by Rule 13a-15 of the Exchange Act. 
  

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 (cc) Accounting Controls. The Company and its subsidiaries maintain systems of
“internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have been designed by, or under the supervision of, their respective principal
executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles, including, but not limited to internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific
authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted
only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences Except as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus, there are no material weaknesses in the Company’s internal controls. 

(dd) Insurance. The Company and its subsidiaries have insurance covering their respective properties, operations, personnel and
businesses, including business interruption insurance, which insurance is in amounts and insures against such losses and risks as are adequate to protect the Company and its subsidiaries and their respective businesses; and neither the Company nor
any of its subsidiaries has (i) received notice from any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business. 

(ee) No Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company and each of the
Guarantors, any director, officer, agent, employee or other person associated with or acting on behalf of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the
Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. 

(ff) Compliance with Money Laundering Laws. The operations of the Company and its subsidiaries are and, to the knowledge of the
Company, have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all
jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company and each of the
Guarantors, threatened. 
  

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 (gg) Compliance with OFAC. None of the Company, any of its subsidiaries or, to the
knowledge of the Company and each of the Guarantors, any director, officer, agent, employee or Affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Department of the Treasury (“OFAC”); and the Company will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint
venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC. 

(hh) Solvency. On and immediately after the Closing Date, none of the Company nor any of the Guarantors (after giving effect to
the issuance of the Securities (including the Guarantees) and the other transactions related thereto as described in the Registration Statement, the Time of Sale Information and the Prospectus) will be “insolvent” as defined under the
United States Bankruptcy Code. 
 (ii) No Restrictions on Subsidiaries. No subsidiary of the Company is currently
prohibited, directly or indirectly, under any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution on such subsidiary’s capital stock, from repaying to
the Company any loans or advances to such subsidiary from the Company or from transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary of the Company. 

(jj) No Broker’s Fees. Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding
with any person (other than this Agreement) that would give rise to a valid claim against the Company or any of its subsidiaries or any Underwriter for a brokerage commission, finder’s fee or like payment in connection with the offering and
sale of the Securities. 
 (kk) No Registration Rights. No person has the right to require the Company or any of its
subsidiaries to register any Securities for sale under the Securities Act by reason of the filing of the Registration Statement with the Commission or the issuance and sale of the Securities. 

(ll) No Stabilization. Neither the Company nor any of the Guarantors has taken, directly or indirectly, any action designed to or
that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 

(mm) Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or any of the Company’s directors or
officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), including
Section 402 related to loans and Sections 302 and 906 related to certifications. 
  

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 (nn) Status under the Securities Act. The Company is not an ineligible issuer and is
a well-known seasoned issuer, in each case as defined under the Securities Act, in each case at the times specified in the Securities Act in connection with the offering of the Securities. 

(oo) Reserve Report Data. Other than as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus,
the oil and gas reserve estimates of the Company and its subsidiaries for the fiscal years ended December 31, 2010, 2009, 2008 and 2007 contained in the Registration Statement, the Time of Sale Information and the Prospectus are derived from
reports that have been prepared by or have been audited by either (a) Lee Keeling and Associates, Inc. or (b) Haas Petroleum Engineering Services Inc., as set forth therein, and such reserves were prepared in accordance with the Statement
of Financial Accounting Standards No. 69 and Rule 4-10 of Regulation S-X. 
 (pp) Independent Reserve Engineering
Firm. Each of Lee Keeling and Associates, Inc. and Haas Petroleum Engineering Services Inc., who have certified the oil and gas reserve estimates of the Company and its subsidiaries, has represented to the Company that it is, and the Company
believes each to be, an independent reserve engineering firm with respect to the Company and its subsidiaries for the periods set forth in the Registration Statement, the Time of Sale Information and the Prospectus. 

(qq) Federal Power Act. None of the Company or any of its subsidiaries is subject to regulation as a “public utility
company”, “public service company”, “holding company” (or similar designation) by any governmental or regulatory authority, including under the Federal Power Act, as amended (“FPA”) or any applicable state utility
laws. 
 4. Further Agreements of the Company and the Guarantors. The Company and each of the Guarantors jointly and
severally covenant and agree with each Underwriter that: 
 (a) Required Filings. The Company will file the final
Prospectus with the Commission within the time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the Securities Act, will file any Issuer Free Writing Prospectus (including the Term Sheet in the form of Annex C hereto) to the extent
required by Rule 433 under the Securities Act; and will file promptly all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act subsequent to the date of the Prospectus and for so long as the delivery of a prospectus is required in connection with the offering or sale of the Securities; and the Company will furnish copies of the Prospectus and each Issuer Free
Writing Prospectus (to the extent not previously delivered) to the Underwriters in New York City prior to 10:00 A.M., New York City time, on the business day next succeeding the date of this Agreement in such quantities as the Representative may
reasonably request. The Company will pay the registration fees for this offering within the time period required by Rule 456(b)(1)(i) under the Securities Act and in any event prior to the Closing Date. 

 

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 (b) Delivery of Copies. The Company will deliver, without charge, (i) to the
Representative, two copies of the signed Registration Statement as originally filed and each amendment thereto, in each case including all exhibits and consents filed therewith and documents incorporated by reference therein, and (ii) make
available to each Underwriter electronically through EDGAR (A) a conformed copy of the Registration Statement as originally filed and each amendment thereto, in each case including all exhibits and consents filed therewith and (B) deliver,
without charge, during the Prospectus Delivery Period (as defined below), as many copies of the Prospectus (including all amendments and supplements thereto and documents incorporated by reference therein) and each Issuer Free Writing Prospectus as
the Representative may reasonably request. As used herein, the term “Prospectus Delivery Period” means such period of time after the first date of the public offering of the Securities as in the opinion of counsel for the Underwriters a
prospectus relating to the Securities is required by law to be delivered (or required to be delivered but for Rule 172 under the Securities Act) in connection with sales of the Securities by any Underwriter or dealer. 

(c) Amendments or Supplements; Issuer Free Writing Prospectuses. Prior to the later of (i) Closing or (ii) the
expiration of the Prospectus Delivery Period, before preparing, using, authorizing, approving, referring to or filing any Issuer Free Writing Prospectus, and before filing any amendment or supplement to the Registration Statement or the Prospectus,
whether before or after the time that the Registration Statement becomes effective the Company will furnish to the Representative and counsel for the Underwriters a copy of the proposed Issuer Free Writing Prospectus, amendment or supplement for
review and will not prepare, use, authorize, approve, refer to or file any such Issuer Free Writing Prospectus or file any such proposed amendment or supplement to which the Representative reasonably objects. 

(d) Notice to the Representative. The Company will advise the Representative promptly, and confirm such advice in writing,
(i) when any amendment to the Registration Statement filed prior to the later of (x) Closing or (y) the expiration of the Prospectus Delivery Period or otherwise relating to the Securities has been filed or becomes effective;
(ii) when any supplement to the Prospectus or any amendment to the Prospectus or any Issuer Free Writing Prospectus relating to the Securities has been filed; (iii) of any request by the Commission for any amendment to the Registration
Statement or any amendment or supplement to the Prospectus or the receipt of any comments from the Commission relating to the Registration Statement or any other request by the Commission for any additional information as of the later of
(x) Closing or (y) the expiration of the Prospectus Delivery Period; (iv) of the issuance by the Commission of any order suspending the effectiveness of the Registration Statement or preventing or suspending the use of any Preliminary
Prospectus or the Prospectus or the initiation or threatening of any proceeding for that purpose or pursuant to Section 8A of the Securities Act; (v) of the occurrence of any event within the Prospectus Delivery Period as a result of which
the Prospectus, the Time of Sale Information or any Issuer Free Writing Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances existing when the Prospectus, the Time of Sale Information or any such Issuer Free Writing Prospectus is delivered to a purchaser, not misleading; (vi) of the receipt by
the Company of any notice of objection of the Commission to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act; and (vii) of the receipt by the Company of any notice
with respect to any suspension of the qualification of the Securities for offer and sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and the Company will use its reasonable best efforts to prevent the
issuance of any such order suspending the effectiveness of the Registration Statement, preventing or suspending the use of any Preliminary Prospectus or the Prospectus or suspending any such qualification of the Securities and, if any such order is
issued, will use its reasonable best efforts to obtain as soon as possible the withdrawal thereof. 
  

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 (e) Time of Sale Information. If at any time prior to the Closing Date (i) any
event shall occur or condition shall exist as a result of which the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances, not misleading or (ii) it is necessary to amend or supplement the Time of Sale Information to comply with law, the Company will promptly notify the Underwriters thereof and forthwith
prepare and, subject to paragraph (c) above, file with the Commission (to the extent required) and furnish to the Underwriters and to such dealers as the Representative may designate, such amendments or supplements to the Time of Sale
Information as may be necessary so that the statements in the Time of Sale Information as so amended or supplemented will not, in the light of the circumstances, be misleading or so that the Time of Sale Information will comply with law. 

(f) Ongoing Compliance. If during the Prospectus Delivery Period (i) any event shall occur or condition shall exist as
a result of which the Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances existing when the Prospectus is delivered to a purchaser, not misleading or (ii) it is necessary to amend or supplement the Prospectus to comply with law, the Company will promptly notify the Underwriters thereof and
forthwith prepare and, subject to paragraph (c) above, file with the Commission and furnish to the Underwriters and to such dealers as the Representative may designate, such amendments or supplements to the Prospectus as may be necessary so
that the statements in the Prospectus as so amended or supplemented will not, in the light of the circumstances existing when the Prospectus is delivered to a purchaser, be misleading or so that the Prospectus will comply with law 

  

 17 








 (g) Blue Sky Compliance. The Company will qualify the Securities for offer and sale
under the securities or Blue Sky laws of such jurisdictions as the Representative shall reasonably request and will continue such qualifications in effect so long as required for distribution of the Securities; provided that the Company shall
not be required to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to service of process in
any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not otherwise so subject. 

(h) Earning Statement. The Company will make generally available to its security holders and the Representative as soon as
practicable an earning statement that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated thereunder covering a period of at least twelve months beginning with the first fiscal quarter of
the Company occurring after the “effective date” (as defined in Rule 158) of the Registration Statement. 
 (i)
Clear Market. During the period from the date hereof through and including the date that is 90 days after the date hereof, the Company will not, without the prior written consent of the Representative, offer, sell, contract to sell or
otherwise dispose of any debt securities issued or guaranteed by the Company and having a tenor of more than one year. 
 (j)
Use of Proceeds. The Company will apply the net proceeds from the sale of the Securities as described in the Registration Statement, the Time of Sale Information and the Prospectus under the heading “Use of proceeds”. 

(k) No Stabilization. The Company will not take, directly or indirectly, any action designed to or that could reasonably be
expected to cause or result in any stabilization or manipulation of the price of the Securities. 
 (l) Record Retention.
The Company will, pursuant to reasonable procedures developed in good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the Commission in accordance with Rule 433 under the Securities Act. 

5. Certain Agreements of the Underwriters. Each Underwriter hereby represents and agrees that 

(a) It has not and will not use, authorize use of, refer to, or participate in the planning for use of, any “free writing
prospectus”, as defined in Rule 405 under the Securities Act (which term includes use of any written information furnished to the Commission by the Company and not incorporated by reference into the Registration Statement and any press release
issued by the Company) other than (i) a free writing prospectus that, solely as a result of use by such underwriter, would not trigger an obligation to file such free writing prospectus with the Commission pursuant to Rule 433, (ii) any
Issuer Free Writing Prospectus listed on Annex B or prepared pursuant to Section 3(c) or Section 4(c) above (including any electronic road show); or (iii) any free writing prospectus prepared by such underwriter and approved by the
Company in advance in writing (each such free writing prospectus referred to in clauses (i) or (iii), an “Underwriter Free Writing Prospectus”). Notwithstanding the foregoing, the Underwriters may use a term sheet substantially in the
form of Annex C hereto without the consent of the Company. 
  

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 (b) It is not subject to any pending proceeding under Section 8A of the Securities Act
with respect to the offering (and will promptly notify the Company if any such proceeding against it is initiated during the Prospectus Delivery Period). 

6. Conditions of Underwriters’ Obligations. The obligation of each Underwriter to purchase Securities on the Closing Date as
provided herein is subject to the performance by the Company and each of the Guarantors of their respective covenants and other obligations hereunder and to the following additional conditions: 

(a) Registration Compliance; No Stop Order. No order suspending the effectiveness of the Registration Statement shall be in
effect, and no proceeding for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act shall be pending before or threatened by the Commission; the Prospectus and each Issuer Free Writing Prospectus shall have
been timely filed with the Commission under the Securities Act (in the case of an Issuer Free Writing Prospectus, to the extent required by Rule 433 under the Securities Act) and in accordance with Section 4(a) hereof; and all requests by the
Commission for additional information shall have been complied with to the reasonable satisfaction of the Representative. 
 (b)
Representations and Warranties. The representations and warranties of the Company and each of the Guarantors contained herein shall be true and correct on the date hereof and on and as of the Closing Date; and the statements of the Company
and each of the Guarantors, and their respective officers made in any certificates delivered pursuant to this Agreement shall be true and correct on and as of the Closing Date. 

(c) No Downgrade. Between the earlier of (A) the Time of Sale and (B) the execution and delivery of this Agreement and
the Closing Date, (i) no downgrading shall have occurred in the rating accorded the Securities or any other debt securities or preferred stock of or guaranteed by the Company or any of the Guarantors by any “nationally recognized
statistical rating organization”, as such term is defined by the Commission for purposes of Rule 436(g)(2) under the Securities Act and (ii) no such organization shall have publicly announced that it has under surveillance or review, or
has changed its outlook with respect to, its rating of the Securities or of any other debt securities or preferred stock of or guaranteed by the Company or any of its subsidiaries (other than an announcement with positive implications of a possible
upgrading). 
  

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 (d) No Material Adverse Change. No event or condition of a type described in
Section 3(g) hereof shall have occurred or become known between the time of execution of this Agreement and the Closing Date, which event or condition is not described in the Registration Statement, the Time of Sale Information (excluding any
amendment or supplement thereto) and the Prospectus (excluding any amendment or supplement thereto) and the effect of which in the judgment of the Representative is so material and adverse as to make it impracticable or inadvisable to proceed with
the offering, sale or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the Registration Statement, the Time of Sale Information and the Prospectus. 

(e) Officer’s Certificate. The Representative shall have received on and as of the Closing Date a certificate of an executive
officer of the Company and each Guarantor who has specific knowledge of the Company’s or such Guarantor’s financial matters and is satisfactory to the Representative (i) confirming that such officer has carefully reviewed the
Registration Statement, the Time of Sale Information and the Prospectus and, to the knowledge of such officer, the representations set forth in Sections 3(b) and 3(d) hereof are true and correct as of the Closing Date, (ii) confirming that the
other representations and warranties of the Company and the Guarantors in this Agreement are true and correct as of the Closing Date and that the Company and the Guarantors have complied with all agreements and satisfied all conditions on their part
to be performed or satisfied hereunder at or prior to the Closing Date and (iii) to the effect set forth in paragraphs (a), (c) and (d) above. 

(f) Comfort Letters. On the date of this Agreement and on the Closing Date, KPMG, LLP shall have furnished to the Representative,
at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the Underwriters, in form and substance reasonably satisfactory to the Representative, containing statements and information of the type
customarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information contained or incorporated by reference in the Registration Statement, the Time of Sale
Information and the Prospectus; provided that the letter delivered on the Closing Date shall use a “cut-off” date no more than three business days prior to the Closing Date. 

(g) Opinion and 10b-5 Statement of Counsel for the Company. (i) Haynes and Boone LLP, counsel for the Company, shall have
furnished to the Representative, at the request of the Company, their written opinion and 10b-5 Statement, dated the Closing Date and addressed to the Underwriters, in form and substance reasonably satisfactory to the Representative, substantially
to the effect set forth in Annex D hereto and (ii) William L. Boeing, general counsel for the Company, shall have furnished to the Representative, at the request of the Company, his written opinion, dated the Closing Date and addressed to the
Underwriters, in form and substance reasonably satisfactory to the Representative, substantially to the effect set forth in Annex E hereto. 

(h) Opinion and 10b-5 Statement of Counsel for the Underwriters. The Representative shall have received on and as of the Closing
Date an opinion and 10b-5 Statement of Simpson Thacher & Bartlett LLP, counsel for the Underwriters, with respect to such matters as the Representative may reasonably request, and such counsel shall have received such documents and
information as they may reasonably request to enable them to pass upon such matters. 
  

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 (i) No Legal Impediment to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date, prevent the issuance or sale of the Securities or the issuance of the
Guarantees; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Securities or the issuance of the Guarantees. 

(j) Good Standing. The Representative shall have received on and as of the Closing Date satisfactory evidence
of the good standing of the Company and the Guarantors in their respective jurisdictions of organization and their good standing in such other jurisdictions as the Representative may reasonably request, in each case in writing or any standard form
of telecommunication from the appropriate governmental authorities of such jurisdictions.  
 (k) Reserve Report
Confirmation Letters. On the date of this Agreement and on the Closing Date, Lee Keeling and Associates, Inc. and Haas Petroleum Engineering Services Inc. each shall have furnished to the Representative, at the request of the Company, letters,
dated the respective dates of delivery thereof and addressed to the Underwriters, in form and substance reasonably satisfactory to the Representative, containing statements and information with respect to the estimated oil and gas reserves of the
Company and its subsidiaries contained in the Registration Statement, the Time of Sale Information and the Prospectus. 
 (l)
Chief Financial Officer Certificate. The Representative shall have received on and as of the Closing Date a certificate of the chief financial officer of the Company confirming that (i) he is familiar with the books and records and
internal accounting practices, policies, procedures and controls of the Company and has had responsibility for accounting matters with respect to the Company, (ii) he has reviewed the identified information, which is included in the
Registration Statement, the Time of Sale Information and the Prospectus and which has not been otherwise reviewed by KPMG, LLP, the Company’s independent registered public accounting firm, and (iii) attesting to the accuracy of the
identified information in all material respects. 
 (m) Consents. On or prior to the Closing Date, the Company shall have
furnished to the Representative a copy of the consent to the issuance, offer and sale of the Securities executed by the administrative agent and lenders under the Credit Agreement dated as of April 30, 2010 among the Company, JPMorgan Chase
Bank, N.A., as administrative agent, and the lenders parties thereto from time to time. 
 (n) Notice of
Redemption. On or prior to the Closing Date, the Company shall have duly issued an irrevocable notice of redemption pursuant to that certain Indenture, dated as of January 20, 2004, among the Company, the subsidiary guarantors party
thereto and Wilmington Trust Company, as amended and supplemented. 
  

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 (o) Additional Documents. On or prior to the Closing Date, the Company and the
Guarantors shall have furnished to the Representative such further certificates and documents as the Representative may reasonably request. 

All opinions, letters, certificates and evidence mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with
the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Underwriters. 
 7.
Indemnification and Contribution. 
 (a) Indemnification of the Underwriters. The Company and each of the
Guarantors jointly and severally agree to indemnify and hold harmless each Underwriter, its affiliates, directors and officers and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, reasonable legal fees and other expenses incurred in connection with any suit, action or proceeding or any
claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or caused by any
omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein, not misleading, (ii) or any untrue statement or alleged untrue statement of a material fact
contained in the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus or any Time of Sale Information, or caused by any omission or alleged omission to state therein a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representative expressly for use therein, it being understood
and agreed that the only such information furnished by any Underwriter consists of the information described as such in subsection (b) below: 

(b) Indemnification of the Company and the Guarantors. Each Underwriter agrees, severally and not jointly, to indemnify and hold
harmless the Company, each of the Guarantors, and each of their respective directors, their respective officers who signed the Registration Statement and each person, if any, who controls the Company or any of the Guarantors within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are
based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Underwriter furnished to the Company in writing by such Underwriter through the
Representative expressly for use in the Registration Statement, the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus or any Time of Sale Information, it being understood and agreed that the only such
information furnished by any Underwriter consists of the following: the second and third sentences concerning discounts and commissions under the third paragraph, the third sentence certain market making activities of the six paragraph, the seventh
paragraph concerning certain stabilization transactions, and the eleventh paragraph regarding Lloyds TSB Bank plc under the heading “Underwriting”. 
  

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 (c) Notice and Procedures. If any suit, action, proceeding (including any
governmental or regulatory investigation), claim or demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such person (the “Indemnified
Person”) shall promptly notify the person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have under paragraph (a) or (b) of this Section 7 except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) of this Section 7. If any such proceeding
shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not, without the consent
of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and any others entitled to indemnification pursuant to Section 7 that the Indemnifying Party may designate in such proceeding and shall pay
the fees and expenses of such proceeding and shall pay the fees and expenses of counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; or (ii) the Indemnifying Person has failed within a reasonable
time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to
the Indemnifying Person and counsel appointed by the Indemnifying Person declines to raise such different or additional defenses on behalf of such Indemnified Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interest between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and
that all such fees and expenses shall be reimbursed as they are incurred. Any such separate firm for any Underwriter, its affiliates, directors and officers and any control persons of such Underwriter shall be designated in writing by J.P. Morgan
Securities LLC and any such separate firm for the Company, the Guarantors, their respective directors, their respective officers who signed the Registration Statement and any control persons of the Company shall be designated in writing by the
Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to
indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement. No
Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have
been sought hereunder by such Indemnified Person, unless such settlement (x) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims
that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. 

 

 23 








 (d) Contribution. If the indemnification provided for in paragraphs (a) and
(b) above is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person
thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company
and the Guarantors on the one hand and the Underwriters on the other from the offering of the Securities or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the Underwriters on the other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Guarantors on the one hand and the Underwriters on the other shall be deemed to be in the same
respective proportions as the net proceeds (before deducting expenses) received by the Company from the sale of the Securities and the total underwriting discounts and commissions received by the Underwriters in connection therewith, in each case as
set forth in the table on the cover of the Prospectus, bear to the aggregate offering price of the Securities. The relative fault of the Company and the Guarantors on the one hand and the Underwriters on the other shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any Guarantor or by the Underwriters and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
  

 24 








 (e) Limitation on Liability. The Company, the Guarantors and the Underwriters agree
that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph
(d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of this
Section 7, in no event shall an Underwriter be required to contribute any amount in excess of the amount by which the total underwriting discounts and commissions received by such Underwriter with respect to the offering of the Securities
exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 7 are several in
proportion to their respective purchase obligations hereunder and not joint. 
 (f) Non-Exclusive Remedies. The remedies
provided for in this Section 7 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity. 

8. Effectiveness of Agreement. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

 9. Termination. This Agreement may be terminated in the absolute discretion of the Representative, by notice to the
Company, if after the execution and delivery of this Agreement and prior to the Closing Date (i) trading of securities generally shall have been suspended or materially limited on the New York Stock Exchange or the over-the-counter market;
(ii) trading of any securities issued or guaranteed by the Company or any of the Guarantors shall have been suspended on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking activities shall have
been declared by federal or New York State authorities; or (iv) there shall have occurred any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, either within or outside the United States, that,
in the judgment of the Representative, is material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale
Information and the Prospectus. 
  

 25 








 10. Defaulting Underwriter. (a) If, on the Closing Date, any Underwriter
defaults on its obligation to purchase the Securities that it has agreed to purchase hereunder, the non-defaulting Underwriters may in their discretion arrange for the purchase of such Securities by other persons satisfactory to the Company on the
terms contained in this Agreement. If, within 36 hours after any such default by any Underwriter, the non-defaulting Underwriters do not arrange for the purchase of such Securities, then the Company shall be entitled to a further period of 36 hours
within which to procure other persons satisfactory to the non-defaulting Underwriters to purchase such Securities on such terms. If other persons become obligated or agree to purchase the Securities of a defaulting Underwriter, either the
non-defaulting Underwriters or the Company may postpone the Closing Date for up to five full business days in order to effect any changes that in the opinion of counsel for the Company or counsel for the Underwriters may be necessary in the
Registration Statement and the Prospectus or in any other document or arrangement, and the Company agrees to promptly prepare any amendment or supplement to the Registration Statement and the Prospectus that effects any such changes. As used in this
Agreement, the term “Underwriter” includes, for all purposes of this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this Section 10, purchases Securities that a defaulting
Underwriter agreed but failed to purchase. 
 (b) If, after giving effect to any arrangements for the purchase of the Securities
of a defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased does not exceed one-eleventh of the
aggregate principal amount of all the Securities, then the Company shall have the right to require each non-defaulting Underwriter to purchase the principal amount of Securities that such Underwriter agreed to purchase hereunder plus such
Underwriter’s pro rata share (based on the principal amount of Securities that such Underwriter agreed to purchase hereunder) of the Securities of such defaulting Underwriter or Underwriters for which such arrangements have not
been made. 
 (c) If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Underwriter or
Underwriters by the non-defaulting Underwriters and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the
Securities, or if the Company shall not exercise the right described in paragraph (b) above, then this Agreement shall terminate without liability on the part of the non-defaulting Underwriters. Any termination of this Agreement pursuant to
this Section 10 shall be without liability on the part of the Company, except that the Company will continue to be liable for the payment of expenses as set forth in Section 11 hereof and except that the provisions of Section 7 hereof
shall not terminate and shall remain in effect. 
  

 26 








 (d) Nothing contained herein shall relieve a defaulting Underwriter of any liability it may
have to the Company or any non-defaulting Underwriter for damages caused by its default. 
 11. Payment of
Expenses. (a) Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company and each of the Guarantors jointly and severally agree to pay or cause to be paid all costs and
expenses incident to the performance of their respective obligations hereunder, including without limitation, (i) the costs incident to the authorization, issuance, sale, preparation and delivery of the Securities and any taxes payable in that
connection; (ii) the costs incident to the preparation, printing and filing under the Securities Act of the Registration Statement, the Preliminary Prospectus, any Issuer Free Writing Prospectus, any Time of Sale Information and the Prospectus
(including all exhibits, amendments and supplements thereto) and the distribution thereof; (iii) the costs of reproducing and distributing each of the Transaction Documents; (iv) the fees and expenses of the Company’s and the
Guarantors’ counsel and independent accountants; (v) the fees and expenses incurred in connection with the registration or qualification and determination of eligibility for investment of the Securities under the laws of such jurisdictions
as the Representative may designate and the preparation, printing and distribution of a Blue Sky Memorandum (including the related fees and expenses of counsel for the Underwriters); (vi) any fees charged by rating agencies for rating the
Securities; (vii) the fees and expenses of the Trustee and any paying agent (including related fees and expenses of any counsel to such parties); (viii) all expenses and application fees incurred in connection with any filing with, and
clearance of the offering by, the Financial Industry Regulatory Authority, Inc.; and (ix) all expenses incurred by the Company in connection with any “road show” presentation to potential investors. 

(b) If (i) this Agreement is terminated pursuant to Section 9, (ii) the Company for any reason fails to tender the
Securities for delivery to the Underwriters or (iii) the Underwriters decline to purchase the Securities for any reason permitted under this Agreement, the Company and each of the Guarantors jointly and severally agree to reimburse the
Underwriters for all out-of-pocket costs and expenses (including the reasonable fees and expenses of their counsel) reasonably incurred by the Underwriters in connection with this Agreement and the offering contemplated hereby. 

12. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective successors and the officers and directors and any controlling persons referred to herein, and the affiliates of each Underwriter referred to in Section 7 hereof. Nothing in this Agreement is intended or shall be construed
to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. No purchaser of Securities from any Underwriter shall be deemed to be a successor merely by reason of
such purchase. 
  

 27 








 13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company, the Guarantors and the Underwriters contained in this Agreement or made by or on behalf of the Company, the Guarantors or the Underwriters pursuant to this Agreement or any certificate delivered pursuant
hereto shall survive the delivery of and payment for the Securities and shall remain in full force and effect, regardless of any termination of this Agreement or any investigation made by or on behalf of the Company or the Underwriters. 

14. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term
“affiliate” has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business day” means any day other than a day on which banks are permitted or required to be closed in New York City; and (c) the
term “subsidiary” has the meaning set forth in Rule 405 under the Securities Act. For the avoidance of doubt, the term “subsidiary” shall exclude the Joint Ventures. 

15. Miscellaneous. (a) Authority of the Representative. Any action by the Underwriters hereunder may be taken by J.P.
Morgan Securities LLC on behalf of the Underwriters, and any such action taken by J.P. Morgan Securities LLC shall be binding upon the Underwriters. 

(b) Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if
mailed or transmitted and confirmed by any standard form of telecommunication. Notices to the Underwriters shall be given to the Representative c/o J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179 (fax: (212)-270-1063);
Attention: Lawrence Landry. Notices to the Company and Guarantors shall be given to it at 12377 Merit Drive, Suite 1700, Dallas, Texas 75251, (fax: (214) 706-3409); Attention: William L. Boeing. Vice President, General Counsel and Secretary.

 (c) Governing Law. This Agreement and any claim, controversy, or dispute arising under or related to this Agreement
shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles other than Sections 5-1401 and 5-1402 of the New York General Obligation Law that would require the application
of the law of any other state. 
 Service of any process, summons, notice or document by mail to such party’s address set forth above shall
be effective service of process for any suit, action or other proceeding arising out of or based upon this Agreement or the transactions contemplated hereby that directly relate to the offering of the Securities brought in any court of competent
jurisdiction. 
 The Company and the Guarantors further agree that nothing herein shall affect the Representative’s rights to effect
service of process in any other manner permitted by law or to bring a suit, action or proceeding (including a proceeding for enforcement of a judgment) in any other court or jurisdiction in accordance with applicable law. 

 

 28 








 (d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. 

(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure
therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 
 (f)
Headings. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. 

 

 29 








 If the foregoing is in accordance with your understanding, please indicate your acceptance
of this Agreement by signing in the space provided below. 
  

			
	Very truly yours,
	
	EXCO Resources, Inc.
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	EXCO SERVICES, INC.
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	EXCO PARTNERS GP, LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	EXCO GP PARTNERS OLD, LP
	
	By: EXCO PARTNERS GP, LLC, its general partner
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	EXCO PARTNERS OLP GP, LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary


 [Underwriting
Agreement Signature Page] 








			
	EXCO OPERATING COMPANY, LP
	
	By: EXCO PARTNERS OLP GP, LLC its general partner
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	VERNON GATHERING, LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	EXCO MIDCONTINENT MLP, LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	EXCO HOLDING (PA), INC.
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President and Secretary
	
	EXCO PRODUCTION COMPANY (PA), LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President and Secretary



[Underwriting Agreement Signature Page] 








			
	EXCO PRODUCTION COMPANY (WV), LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President and Secretary
	
	EXCO EQUIPMENT LEASING, LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President, General
		 	Counsel and Secretary
	
	EXCO RESOURCES (XA), LLC
		
	By	 	 /s/ William L. Boeing

	Name:	 	William L. Boeing
	Title:	 	Vice President and Secretary



[Underwriting Agreement Signature Page] 








			
	Accepted: September 10, 2010
	
	J.P. MORGAN SECURITIES LLC
	
	For itself and on behalf of the
	several Underwriters listed
	in Schedule 1 hereto.
		
	By	 	 /s/ Lawrence S. Landry

		 	Authorized Signatory


[Underwriting Agreement Signature Page] 







 Schedule 1 
  

						
	 Underwriter
	  	 	  	Principal
Amount
			
	 J.P. Morgan Securities LLC
	  		  	$	121,875,000
	 Banc of America Securities LLC
	  		  	 	112,125,000
	 BNP Paribas Securities Corp.
	  		  	 	84,500,000
	 RBC Capital Markets Corporation
	  		  	 	84,500,000
	 Wells Fargo Securities, LLC
	  		  	 	84,500,000
	 Barclays Capital Inc.
	  		  	 	23,400,000
	 BMO Capital Markets Corp.
	  		  	 	23,400,000
	 Credit Agricole Securities (USA) Inc.
	  		  	 	23,400,000
	 Lloyds TSB Bank plc
	  		  	 	23,400,000
	 RBS Securities Inc.
	  		  	 	23,400,000
	 Scotia Capital (USA) Inc.
	  		  	 	23,400,000
	 UBS Securities LLC
	  		  	 	23,400,000
	 Citigroup Global Markets Inc.
	  		  	 	11,700,000
	 Comerica Securities, Inc.
	  		  	 	11,700,000
	 Daiwa Capital Markets America Inc.
	  		  	 	11,700,000
	 Deutsche Bank Securities Inc.
	  		  	 	16,800,000
	 KeyBanc Capital Markets Inc.
	  		  	 	11,700,000
	 Mitsubishi UFJ Securities (USA), Inc.
	  		  	 	11,700,000
	 Natixis Bleichroeder LLC
	  		  	 	11,700,000
	 U.S. Bancorp Investments, Inc.
	  		  	 	11,700,000
		  		  	 	 
		  	Total	  	$	750,000,000

  







 Schedule 2 

Guarantors 
 EXCO
Equipment Leasing, LLC 
 EXCO GP Partners Old, LP 

EXCO Holding (PA), Inc. 
 EXCO Midcontinent MLP,
LLC 
 EXCO Operating Company, LP 
 EXCO
Partners GP, LLC 
 EXCO Partners OLP GP, LLC 

EXCO Production Company (PA), LLC 
 EXCO
Production Company (WV), LLC 
 EXCO Resources (XA), LLC 

EXCO Services, Inc. 
 Vernon Gathering, LLC








 Schedule 3 

Subsidiaries 
 EXCO Services,
Inc. 
 EXCO Equipment Leasing, LLC 

EXCO Midcontinent MLP, LLC 
 EXCO Holding (PA),
Inc. 
 Black Bear Gathering, LLC 
 EXCO
Production Company (PA), LLC 
 EXCO Production Company (WV), LLC 

EXCO Resources (XA), LLC 
 EXCO Partners GP, LLC

 EXCO GP Partners Old, LP 
 EXCO
Partners OLP GP, LLC 
 EXCO Operating Company, LP 

EXCO Caddo Acquisition, LLC 
 PCMWL, LLC

 EXCO Water Resources, LLC 
 Vernon
Gathering, LLC 
 Joint Ventures 

EBG Resources, LLC 
 EXCO Resources (PA), LLC

 Appalachia Midstream, LLC 
 TGGT
Holdings, LLC 
 TGGT GP Holdings, LLC 

TGG Pipeline, Ltd. 
 Talco Midstream Assets, Ltd.

 Bonchasse Land Company, LLC 







 Annex B 

Time of Sale Information 
 Final pricing
term sheet substantially in the form of Annex C attached hereto. 







 Annex C 

Issuer Free Writing Prospectus 

Pursuant to Rule 433 under the Securities Act of 1933 

Registration Statement on Form S-3 (File No. 333-169253) 

Pricing Term Sheet 

EXCO Resources, Inc. 

$750,000,000 

7.500% Senior Notes due 2018 

This pricing term sheet supplements the preliminary prospectus dated September 7, 2010. This pricing term sheet is qualified in its entirety by
reference to the preliminary prospectus dated September 7, 2010 (the “Preliminary Prospectus”). Terms used and not defined herein have the meanings assigned in the Preliminary Prospectus. 

 

					
		
	 Issuer:
	  	EXCO Resources, Inc.
		
	 Security description:
	  	7.500% Senior Notes due 2018
		
	 Distribution:
	  	SEC Registered
		
	 Size:
	  	$750,000,000
		
	 Gross proceeds:
	  	$738,975,000
		
	 Maturity:
	  	September 15, 2018
		
	 Coupon:
	  	7.500%
		
	 Price:
	  	98.530% of principal amount
		
	 Yield to maturity:
	  	7.750%
		
	 Spread to Benchmark Treasury:
	  	+535 basis points
		
	 Benchmark Treasury:
	  	UST 4% due August 15, 2018
		
	 Interest Payment Dates:
	  	September 15 and March 15, beginning on March 15, 2011. Interest will accrue from September 15, 2010.
		
	 Equity Clawback:
	  	Up to 35% at 107.500% plus accrued and unpaid interest
		
	 Until:
	  	September 15, 2013
			
		  		  	









					
	 Optional redemption:
	  	On and after July 15, 2014, at the prices set forth below (expressed as percentages of the principal amount), plus accrued and unpaid interest:
	 	  	 Year
	  	 Percentage

		  	2014	  	103.750%
		  	2015	  	101.875%
		  	2016 and thereafter	  	100.000%
		
	 Make-whole:
	  	Make-whole call @ T+50 bps prior to September 15, 2014
		
	 Change of control:
	  	Putable at 101% of principal plus accrued and unpaid interest
		
	 Trade date:
	  	September 10, 2010
		
	 Settlement:
	  	T+ 3; September 15, 2010
		
	 CUSIP:
	  	269279AD7
		
	 ISIN:
	  	US269279AD75
		
	 Denominations/Multiple:
	  	$2,000 x $1,000
		
	 Ratings:
	  	[Intentionally Omitted]
		
	 Joint Book-Running Managers:
	  	 J.P. Morgan Securities LLC

Banc of America Securities LLC
 BNP Paribas
Securities Corp.
 RBC Capital Markets Corporation

Wells Fargo Securities, LLC

		
	 Senior Co-Managers:
	  	 Barclays Capital Inc.

BMO Capital Markets Corp.
 Credit Agricole
Securities (USA) Inc.
 Lloyds TSB Bank plc

RBS Securities Inc.
 Scotia Capital (USA) Inc.

 UBS Securities LLC

		
	 Co-Managers:
	  	 Citigroup Global Markets Inc.

Comerica Securities, Inc.
 Daiwa Capital Markets
America Inc.
 Deutsche Bank Securities Inc.

KeyBanc Capital Markets Inc.
 Mitsubishi UFJ
Securities (USA), Inc.
 Natixis Bleichroeder LLC

U.S. Bancorp Investments, Inc.









  

Other information presented in the Preliminary Prospectus is deemed to have changed to the extent affected by the changes described herein.

 This material is confidential and is for your information only and is not intended to be used by anyone other than you. This
information does not purport to be a complete description of these securities or the offering. Please refer to the offering memorandum for a complete description. 

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you
invest, you should read the prospectus in that registration statement, the prospectus and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-245-8812.