Document:

Exhibit 10.2

 

AMENDED AND RESTATED

2007 DIRECTOR PLAN OF

EXCO RESOURCES, INC.

(Adopted November 8, 2006)

(Amended and Restated Effective November 14, 2007)

 

1.             Purpose. The purpose of this
Amended and Restated 2008 Director Plan of EXCO Resources, Inc. (the “Director
Plan”) is (i) to attract to and retain at EXCO Resources, Inc., a Texas
corporation (the “Company”), qualified and competent directors, upon whose
efforts and judgment the success of the Company is largely dependent, and (ii) to
stimulate the active interest of these persons in the development and financial
success of the Company by providing for stock ownership in the Company by such
persons.

 

2.             Definitions. Except as otherwise stated, all capitalized terms herein shall have
the meanings assigned to such terms in the EXCO Resources, Inc. 2005 Long-Term
Incentive Plan, as amended (the “Incentive Plan”). In addition, the following
terms shall have the meanings indicated:

 

(a)           “Change in Control” shall mean:

 

(A)                              Any “Person” (as defined in paragraph (E) below), other than (1) the
Company or any of its subsidiaries, (2) a trustee or other fiduciary
holding stock under an employee benefit plan of the Company or any of its
Affiliates, (3) an underwriter temporarily holding stock pursuant to an
offering of such stock, or (4) a corporation owned, directly or
indirectly, by the shareholders of the Company in substantially the same
proportions as their ownership of stock of the Company, acquires ownership of
stock of the Company that, together with stock held by such Person, constitutes
more than 50% of the total fair market value or total voting power of the
Company’s stock. However, if any Person is considered to own more than 50% of
the total fair market value or total voting power of the Company’s stock, the
acquisition of additional stock by the same Person is not considered to be a
Change of Control;

 

(B)                                A majority of members of the Board is replaced during any 12-month
period by directors whose appointment or election is not endorsed by a majority
of the Board before the date of the appointment or election; provided, however,
that any such director shall not be considered to be endorsed by the Board if
his or her initial assumption of office occurs as a result of an actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board; or

 

(C)                                There is consummated a merger or consolidation of the Company or any
direct or indirect subsidiary of the Company with any other corporation, except
if:

 

(1)                                  the merger or consolidation would result in
the voting stock of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting stock of the surviving entity or any parent thereof) more than 70%
of the total voting power of the stock of the Company or such surviving entity
or any parent thereof outstanding immediately after such merger or
consolidation; or

 

(2)                                  the merger or consolidation is effected to
implement a recapitalization of the

 

1

 

Company
(or similar transaction) in which no Person acquires ownership during the
12-month period ending on the date of the most recent acquisition by such
Person, of stock of the Company (not including in the stock beneficially owned
by such Person any stock acquired directly from the Company or its Affiliates
other than in connection with the acquisition by the Company or its Affiliates
of a business) representing 30% or more of the total voting power of the Company’s
then outstanding stock; or

 

(D)  For purposes of this Section 2(a):

 

(1)                                  “Person” shall have the meaning given in Section 7701(a)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”). Person shall
include more than one Person acting as a group as defined by the Final Treasury
Regulations issued under Section 409A of the Code.

 

(2)                                  “Affiliate” shall have the meaning set forth
in Rule 12b-2 promulgated under Section 12 of the Securities Exchange
Act of 1934, as amended.

 

(b)                                 “Committee” shall have the meaning set forth
in Section 8(a).

 

(c)                                  “Director” shall mean a member of the Company’s
Board of Directors.

 

(d)                                 “Director Fees” shall mean all fees payable
to Directors (including their annual retainer for Board services and all fees
paid for service on Board committees), as set from time to time by the Board,
payable in four (4) equal quarterly amounts (each of such four (4) amounts
being the “Quarterly Director Fees”) to each Director on the first business day
following the end of each fiscal quarter beginning with the fiscal quarter
ended December 31, 2006 (collectively, such payment dates being the “Quarterly
Payment Dates”), which may be paid in cash or in Shares. For clarification
purposes, “Director Fees” shall relate solely to the fees or other compensation
that are paid to a Director for his or her services as a Director.

 

(e)                                  “Effective Date” shall have the meaning set
forth in Section 4(b).

 

(f)                                    “Employee Director” shall mean a Director who
is an employee of the Company or any of its subsidiaries or affiliates.

 

(g)                                 “Nonemployee Director” shall mean a Director
who is not an employee of the Company or any of its subsidiaries or affiliates.

 

(h)                                 “Option” (when capitalized) shall mean any
stock option described in Section 5 of this Director Plan.

 

(i)                                     “Payment Election” shall have the meaning set
forth in Section 4(a).

 

(j)                                     “Quarterly Payment Dates” shall have the
meaning set forth in Section 2(d).

 

(k)                                  “Separation from Service” shall mean a
termination of services provided by a Director as a director of the Board or of
the board of directors of any other member of the controlled group

 

2

 

of
corporations (as defined in Section 414(b) of the Code) which
includes the Company, (hereinafter for purposes of this Section 2(k) the
Company and such other controlled group members being referred to as “ERISA
Affiliates”) whether voluntarily or involuntarily, as determined by the
Committee in accordance with Treas. Reg. §1.409A-1(h). In determining whether a
Director has experienced a Separation from Service as a director of the Board
or of a board of directors of an ERISA Affiliate, the following provisions
shall apply:

 

(A)                              If a Director is an Employee Director at the time of his Separation
from Service as a Director, the services such Director provides as an employee
shall not be taken into account in determining whether the Director has a
Separation from Service as a Director for purposes of this Plan (provided that
this Plan is not, at the time of such determination, aggregated under Treas.
Reg. § 1.409A-1(c)(2)(ii) with any plan in which the Director
participates in as an employee, in which case he or she shall not be treated as
incurring a Separation from Service for purposes of this Plan until he or she
has separated from service both as a Director and as an employee).

 

(B)                                If a Nonemployee Director is also providing additional services to the
Company as an independent contractor, he or she shall not be treated as
incurring a Separation from Service for purposes of this Plan until he or she
has separated from service both as a Director and as an independent contractor.

 

(C)                                A Director shall be considered to have experienced a Separation from
Service when the facts and circumstances indicate that the Director and the
Company and each ERISA Affiliate reasonably anticipate that  the Director will perform no further
services for the Company or any ERISA Affiliate as a director of the Board (or
the board of directors of any ERISA Affiliate), and the Director’s term as a
member of the Board has expired.

 

(l)                                     “Share(s)” shall mean a share or shares of
the Common Stock.

 

3.             Incentive Plan.

 

(a)           Shares. To the
extent a Director elects that his or her Director Fees be paid as Shares in
accordance with Section 4, (i) such Shares shall be issued as
Other Awards pursuant to the Incentive Plan and shall be subject to all of the
terms and provisions thereof, and (ii) the number of Shares that shall be
granted as Other Awards shall be based on fair market value of the Shares
determined as of the date on which Director Fees would normally be paid to the
Director. With respect to this Shares component of the Director Fees, if there
is a conflict between the terms of this Director Plan and the Incentive Plan,
the terms of the Incentive Plan shall be given effect and the conflicting
provisions hereof shall be disregarded.

 

(b)           Options. Options described
in Section 5 of this Director Plan shall be issued as Nonqualified
Stock Options pursuant to the Incentive Plan and shall be subject to all of the
terms and provisions thereof. With respect to such Options, if there is a
conflict between the terms of this Director Plan and the Incentive Plan, the
terms of the Incentive Plan shall be given effect and the conflicting
provisions hereof shall be disregarded. If any Option granted hereunder shall
terminate, expire, or be canceled or surrendered as to any Shares, such Shares
shall thereafter be available for Awards under Article V of the Incentive
Plan.

 

4.             Director Fees. Each Director may make an election (a “Payment
Election”) in accordance with this Section 4 to receive all or a specified
portion his or her Director Fees in Shares, and/or to defer his or her

 

3

 

receipt
of such Director Fees. A Payment Election shall be made in a manner
satisfactory to the Committee. Generally, a Payment Election shall be made by
completing and filing the specified election form with the Secretary or
his or her designee within the period described in Section 4(a). All
elections made in an election form are irrevocable, provided that any such election made for
any year may be revoked by a Director with respect to such year by
providing written notice of such revocation to the Fund prior to such year.

 

(a)           Timing of Election. Each
Director who is serving on the Board as of            
     , 2007 (the “Effective Date”) may make a Payment
Election at any time on or prior to the Effective Date or within 15 days after
the Effective Date, unless an election made during such period would result in
the current taxation of such person pursuant to Section 409A of the Code
or any guidance issued thereunder. If a person becomes a Director after the
Effective Date, such Director may make a Payment Election (i) no
earlier than the date that is 15 days prior to the date on which such person
first becomes a Director, and (ii) no later than the close of the day on
which such person first becomes a Director, unless an election made during such
period would result in the current taxation of such person pursuant to Section 409A
of the Code or any guidance issued thereunder. A Director who does not make a Payment
Election when first eligible may make a Payment Election before any
subsequent calendar year in accordance with administrative procedures
established with respect to the Director Plan.

 

(b)           Effect and Duration of Election. A Payment Election shall apply to Director Fees payable after the
date such election is made and shall be deemed to be continuing and applicable
to all Director Fees payable in subsequent calendar years, unless the Director
revokes or modifies such election by filing a new election form before the
first day of any subsequent calendar year in accordance with administrative
procedures established with respect to the Director Plan, effective for all Director
Fees payable on and after the first day of such calendar year.

 

(c)           Timing of Payment. Each
Payment Election filed under this Section 4 shall specify the
time(s) when a Director shall receive his or her Directors Fees. Pursuant to
such Payment Election, the Director may elect to receive his or her
Director Fees: (i) on the Quarterly Payment Dates on which such Director
Fees are normally paid to a Director; (ii) on or as soon as
administratively feasible after the date on which the Director incurs a Separation
from Service; (iii) on or as soon as administratively feasible after the
date specified by the Director; (iv) upon a Change in Control; or (v) upon
the earliest to occur of two or more of the events described in  “(ii),” “(iii),” and/or “(iv)” above. With
respect to receiving, or beginning to receive, a distribution in accordance
with “(ii),” “(iii),” “(iv),” or “(v)” above, a Director must elect to receive
such distribution in the applicable election form and in accordance with Section 4.
If a Director dies before his or her Director Fees have been distributed
pursuant to this Director Plan, such Director Fees shall be paid as soon as
administratively feasible after the Director’s death, to the Director’s
beneficiary in accordance with Section 7. Notwithstanding the
foregoing, if a Director has elected to defer payment or the commencement of
payment of his or her Director Fees, as applicable, to a specified date in
accordance with clause (iii) or clause (v) above, and the Director
wishes to change such date to a later date, the Director may elect to
change such date by delivering an additional election form to the
Secretary or his or her designee (“Second Timing Election”).
Such a Second Timing Election must be made at least twelve (12) months prior to
the original payment date or payment commencement date, as applicable, and must
defer payment or the commencement of payments of Director Fees, as applicable,
for an additional period of not less than five (5) years after the
applicable original payment date or payment commencement date.

 

(d)           Form of Payment. Each
Payment Election filed under this Section 4 shall specify the form(s)
in which a Director shall receive his or her Directors Fees. Pursuant to such
Payment Election, the Director may elect to receive his or her Director
Fees:  (i) in cash; (ii) Shares
with a fair market value equal to his or her

 

4

 

Director Fees; or (iii) fifty percent (50%) of his or her Director
Fees in cash, and Shares with a fair market value equal to fifty percent (50%) of
his or her Quarterly Director Fees. If a Director has elected to defer the
payment of his or her Director Fees, a Payment Election filed under this Section 4
shall specify whether the payment of his or her Director Fees is to be settled
by delivering cash and/or Shares to the Director in either (i) a lump sum,
or (ii) substantially equal annual installments over a period not to
exceed five (5) years. Any fractional Shares credited to a Director at the
time of a distribution shall be paid in cash at the time of such distribution. Notwithstanding
the foregoing, if a Director has elected to defer the payment of his or her
Director Fees and he or she wishes to change the manner in which such Director
Fees are distributed, the Director may elect to change such manner of
distribution by delivering an additional election form to the Secretary or
his or her designee (“Second Option Election”).
Such a Second Option Election must be made at least 12 months prior to the
original payment date or payment commencement date, as applicable, and must
defer payment or the commencement of payments, as applicable, for an additional
period of not less than 5 years after the applicable original payment date or
payment commencement date.

 

(e)           Crediting of Dividend Equivalents. With respect to deferred Director Fees that are payable to a Director
in Shares, upon the Company’s payment of a cash dividend to its shareholders,
the number of whole and fractional Shares otherwise payable to such Director
shall be increased by the Fair Market Value equivalent of the cash dividends
that otherwise would have been paid on the number of such Shares as of the
close of business on the record date for such dividend.

 

5.             Automatic Grant of Options.

 

(a)           An Option to purchase 50,000 Shares shall automatically be granted to
each new Director (but not current Directors serving as of the date of adoption
of this Director Plan) on a nondiscriminatory basis on the date such Director is
initially elected or appointed a Director of the Company.

 

(b)           Options automatically granted to  Directors pursuant to this Section 5
shall be in addition to the Director Fees or any other benefits with respect to
the Director’s position with the Company or its Subsidiaries.

 

(c)           An Option shall vest in four (4) equal amounts of 12,500  Shares per year over  four (4) years
with the first 12,500 shares vesting upon grant. The foregoing notwithstanding,
no Shares subject to a Director’s Option shall vest in any fiscal year in which
the Director attends less than seventy-five percent (75%) of the Board meetings
held for that fiscal year; failure to attend the requisite number of meetings
during a given fiscal year shall result in a forfeiture of the 12,500 Shares
subject to the Option that were eligible to vest in that year. In the event a
Director ceases to serve as such for any reason, the unvested Shares subject to
the Option shall be forfeited, and the Option shall only be exercisable for the
number of Shares that vested prior to the Director ceasing to serve as a
Director. If a Director dies before exercising his or her Option pursuant to
this Director Plan, such Option shall be transferred as administratively
feasible after the Director’s death, to the Director’s beneficiary in
accordance with Section 7.

 

(d)           Except for the automatic grants of Options under subparagraph (a) of
this Section 5 and the issuance of Shares to Directors under Section 4
above, no Options or Shares shall otherwise be granted hereunder, and the Board
shall not have any discretion with respect to the grant of Options or issuance
of Shares within the meaning of Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended (the “1934 Act”), or any successor
rule.

 

5

 

6.             Unfunded
Status.

 

(a)           General. The
interest of each Director in any Director Fees deferred under the Plan shall be
that of a general creditor of the Company. Deferred Director Fees that are
payable in cash and or Shares, shall at all times be maintained by the Company
as bookkeeping entries evidencing unfunded and unsecured general obligations of
the Company. Except as provided in Section 6(b), no money or other
assets shall be set aside for any Director.

 

(b)           Trust. To the extent
determined by the Company’s Board of Directors, the Company may transfer
funds necessary to fund all or part of the payments under the Director
Plan to a domestic trust; however, the assets held in any such trust shall
remain at all times subject to the claims of the general creditors of the
Company. No Director or beneficiary shall have any interest in the assets held
in any such trust or in the general assets of the Company other than as a
general, unsecured creditor. Accordingly, the Company shall not grant a
security interest in the assets held by any such trust in favor of any
Director, beneficiary or creditor.

 

7.             Designation of Beneficiary. Each Director may designate, on a form provided
by the Committee, one or more beneficiaries to receive payment of the Director’s
deferred Director Fees and Options, if applicable, in the event of such
Director’s death. The Company may rely upon the beneficiary designation
list filed with the Committee, provided that such form was executed by the
Director or his or her legal representative and filed with the Committee prior
to the Director’s death. If a Director has not designated a beneficiary, or if
the designated beneficiary is not surviving when a payment is to be made to such
person under the Plan, the beneficiary with respect to such payment shall be
the Director’s estate.

 

8.             Administration.

 

(a)           General Administration;
Establishment of Committee. Subject
to the terms of this Section 8, the Director Plan shall be administered
by the Board or such committee of the Board as is designated by the Board to
administer this Director Plan (the “Committee”). The Committee shall consist of
not fewer than two persons. Any member of the Committee may be removed at
any time, with or without cause, by resolution of the Board. Any vacancy
occurring in the membership of the Committee may be filled by appointment
by the Board. At any time there is no Committee to administer this Director
Plan, any references in this Director Plan to the Committee shall be deemed to
refer to the Board.

 

Membership
on the Committee shall be limited to those members of the Board who are “outside
directors” under Section 162(m) of the Internal Revenue Code of 1986, as
amended (the “Code”) and “non-employee directors” as defined in Rule 16b-3
promulgated under the 1934 Act only in the event the Common Stock should ever
be registered under the 1934 Act. The Committee shall select one of its members
to act as its Chairman. A majority of the Committee shall constitute a quorum,
and the act of a majority of the members of the Committee present at a meeting
at which a quorum is present shall be the act of the Committee.

 

(b)           Authority of the Committee. The Committee, in its discretion, shall (i) interpret
this Director Plan, (ii) prescribe, amend, and rescind any rules and
regulations necessary or appropriate for the administration of this Director
Plan, and (iii) make such other determinations or certifications and take
such other action as it deems necessary or advisable in the administration of
this Director Plan. Any interpretation, determination, or other action made or
taken by the Committee shall be final, binding, and conclusive on all
interested parties. The Committee’s discretion set forth herein shall not be limited
by any provision of this Director Plan, including any provision which by its
terms is applicable notwithstanding any other provision of this Director Plan
to the contrary.

 

6

 

The
Committee may delegate to officers of the Company, pursuant to a written
delegation, the authority to perform specified functions under this
Director Plan. Any actions taken by any officers of the Company pursuant to
such written delegation of authority shall be deemed to have been taken by the
Committee.

 

9.                                       Duration, Amendment and Termination.

 

(a)           Duration. This
Director Plan shall continue in effect until terminated in accordance with Section 9(b) or
until such time as the Incentive Plan is terminated.

 

(b)           Amendment and Termination. The Director Plan may be terminated or amended in any respect by
resolution adopted by two-thirds of the Board. Notwithstanding anything
contained in this Director Plan to the contrary, unless required by law, no
action contemplated or permitted by this Section 9(b) shall
adversely affect any rights of Directors or obligations of the Company to
Directors with respect to any Options, Shares or other compensation theretofore
granted under this Director Plan without the consent of the affected Director.

 

(c)           Form of Amendment.
The form of any amendment or termination of the Director Plan shall be a
written instrument signed by a duly authorized officer or officers of the
Company, certifying that the amendment or termination has been approved by at
least two-thirds of the Board.

 

10.           Successors. Except as otherwise provided in the Incentive Plan with respect to
Options and Shares, the terms and provisions of this Director Plan shall not be
binding on any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company.

 

11.           Adjustment Provisions. In the event of a  reorganization,
recapitalization, stock split, stock dividend, spin-off, combination, corporate
exchange, merger, consolidation or other change in the Common Stock or any
distribution to shareholders of Common Stock other than cash dividends or any
similar transaction that affects the fair value of an award of Options or
Shares, then the Committee shall adjust the type and number of Shares awarded
to a Director (either as part of an Option or in lieu of cash Director
Fees) so that the fair value of such award immediately after the transaction or
event is equal to the fair value of the award immediately prior to the
transaction or event. Such adjustment shall be made in accordance with the rules of
any securities exchange, stock market, or stock quotation system to which the
Company is subject. Notwithstanding the foregoing, no such adjustment shall be
made or authorized to the extent that such adjustment would cause the Director
Plan or any deferred Director Fees thereunder to violate Section 409A of
the Code.

 

12.           Miscellaneous Provisions.

 

(a)           No Right to Continued Employment. Neither this Director Plan, the Incentive Plan, nor any Options,
Shares or other compensation granted thereunder shall confer upon any Director
the right to continue to serve as a Director.

 

(b)           Indemnification of Board and Committee. No member of the Board or the Committee,
nor any officer or employee of the Company acting on behalf of the Board or the
Committee, shall be personally liable for any action, determination, or
interpretation taken or made in good faith with respect to this Director Plan,
and all members of the Board and the Committee, each officer of the Company,
and each employee of the

 

7

 

Company
acting on behalf of the Board or the Committee shall, to the extent permitted
by law, be fully indemnified and protected by the Company in respect of any
such action, determination, or interpretation.

 

(c)           Effect of the Plan. Neither
the adoption of this Director Plan nor any action of the Board or the Committee
shall be deemed to give any person any right to be granted Options, Shares or
other compensation or any other rights except as may be evidenced by this
Director Plan, or any amendment thereto, duly authorized by the Committee and
executed on behalf of the Company, and then only to the extent and upon the
terms and conditions expressly set forth therein.

 

(d)           Compliance With Other Laws and Regulations. Notwithstanding anything contained herein
to the contrary, the Company shall not be required to sell or issue Shares
under any Options, Shares or other compensation if the issuance thereof would
constitute a violation by the Director or the Company of any provisions of any
law or regulation of any governmental authority or any national securities
exchange or inter-dealer quotation system or other forum in which Shares are quoted
or traded (including without limitation Section 16 of the 1934 Act in the
event the Shares should ever be registered under the 1934 Act and Section 162(m)
of the Code); and, as a condition of any sale or issuance of Shares hereunder,
the Committee may require such agreements or undertakings, if any, as the
Committee may deem necessary or advisable to assure compliance with any
such law or regulation. The Director Plan, the Options, Shares or other
compensation provided hereunder, and the obligation of the Company to sell and
deliver Shares, shall be subject to all applicable federal and state laws, rules and
regulations and to such approvals by any government or regulatory agency as may be
required.

 

(e)           Governing Law. The
validity, interpretation, construction and performance of this Director Plan
shall in all respects be governed by the laws of the State of Texas.

 

(f)            Tax Requirements; Employee Directors. The Company shall have the right to deduct from all amounts paid in
cash or other form in connection with this Director Plan, any Federal,
state, local, or other taxes required by law to be withheld in connection with
the Options, Shares or other compensation provided hereunder. The Company may,
in its sole discretion, also require an Employee Director receiving Shares
issued hereunder to pay the Company the amount of any taxes that the Company is
required to withhold in connection with the Employee Director’s income arising
with respect to such Shares. Such payments shall be required to be made when requested
by Company and may be required to be made prior to the delivery of any
certificate representing Shares. Such payment may be made (i) by the
delivery of cash to the Company in an amount that equals or exceeds (to avoid
the issuance of fractional shares under (iii) below) the required tax
withholding obligations of the Company; (ii) if the Company, in its sole
discretion, so consents in writing, the actual delivery by the exercising Employee
Director to the Company of Shares that the Employee Director has not acquired
from the Company within six (6) months prior to the date of payment, which
shares so delivered have an aggregate Fair Market Value that equals or exceeds
(to avoid the issuance of fractional shares under (iii) below) the
required tax withholding payment; (iii) if the Company, in its sole
discretion, so consents in writing, the Company’s withholding of a number of Shares
to be delivered upon the exercise of an Option, which shares so withheld have
an aggregate fair market value that equals (but does not exceed) the required
tax withholding payment; or (iv) any combination of (i), (ii), or (iii). The
Company may, in its sole discretion, withhold any such taxes from any other
cash remuneration otherwise paid by the Company to the Employee Director.

 

(g)           Section 409A of the Code; Delay of Payments. The terms of this Director Plan have been
designed to comply with the requirements of Section 409A of the Code,
where applicable, and shall be interpreted and administered in a manner
consistent with such intent. Any Options, Shares or other

 

8

 

compensation
which constitutes deferred compensation under Section 409A of the Code
shall not have the time or schedule of any payment thereunder accelerated,
except as permitted under the guidance issued under Section 409A of the
Code. Notwithstanding anything to the contrary in this Plan, (i) if upon a
Director’s Separation from Service, the Director is a “specified employee”
within the meaning of Section 409A of the Code, and the deferral of any
amounts otherwise payable under this Director Plan as a result of the Director’s
Separation from Service is necessary in order to prevent any accelerated or
additional tax to the Director under Section 409A of the Code, then the
Company will delay the payment of any such amounts hereunder until the earliest
of (x) the date that is six (6) months following the date of the Director’s
Separation from Service, (y) the date the Director becomes “disabled” (as
defined in Section 409A of the Code); and (z) the date of the Director’s
death following such Separation from Service; and (ii) if any other
payments of money or other benefits due to the Director hereunder could cause
the application of an accelerated or additional tax under Section 409A of
the Code, such payments or other benefits shall be delayed if such delay will
make such payment or other benefits compliant under Section 409A of the
Code. Upon the expiration of the applicable deferral period, any delayed
amounts will be paid to the Director in a single lump sum, with interest from
the date otherwise payable, at the prime rate as published in The Wall Street
Journal on the Director’s Separation from Service.

 

(h)           Assignability. Except
as otherwise provided herein and in the Incentive Plan, no Options or rights to
receive Shares or other compensation provided hereunder may be
transferred, assigned, pledged, hypothecated or otherwise conveyed or
encumbered other than by will or the laws of descent and distribution.

 

A
copy of this Plan shall be kept on file in the office of the Company at 12377
Merit Drive, Suite 1700, Dallas, Texas, United States, or any successor
location of the Company’s principal executive offices.

 

***************

 

9

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be executed as of November 14,
2007, by its Chairman and Chief Executive Officer and Secretary pursuant to
prior action taken by the Board.

 

 

	
  

  	
  EXCO RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Douglas H. Miller

  	
   

  
	
   

  	
  Name:
   Douglas H. Miller

  
	
   

  	
  Title:
    Chairman and Chief Executive Officer

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  William L. Boeing

  	
   

  	
   

  
	
  William
  L. Boeing

  	
   

  
	
  Vice
  President, General Counsel and Secretary

  	
   

  
					

 

10Exhibit 10.3

 

THIRD AMENDED
AND RESTATED

 

EXCO RESOURCES, INC.

 

SEVERANCE
PLAN

 

(EFFECTIVE
AS OF NOVEMBER 14, 2007)

 

 

TABLE OF CONTENTS

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ONE PURPOSE OF PLAN

  	
   

  	
  1

  
	
  TWO PRIOR SEVERANCE ARRANGEMENTS

  	
   

  	
  1

  
	
  THREE DEFINITIONS

  	
   

  	
  1

  
	
  FOUR ELIGIBILITY AND SEVERANCE PAY BENEFITS

  	
   

  	
  5

  
	
  4.1

  	
  Eligibility

  	
   

  	
  5

  
	
  4.2

  	
  Release Form

  	
   

  	
  5

  
	
  4.3

  	
  Termination of Eligibility for Severance Pay

  	
   

  	
  5

  
	
  4.4

  	
  Severance Pay

  	
   

  	
  6

  
	
  FIVE FUNDING

  	
   

  	
  6

  
	
  SIX CLAIMS PROCEDURE

  	
   

  	
  6

  
	
  6.1

  	
  Filing and Initial Determination of Claim

  	
   

  	
  6

  
	
  6.2

  	
  Duty of Plan Administrator Upon Denial of Claim

  	
   

  	
  7

  
	
  6.3

  	
  Request for Review of Claim Denial

  	
   

  	
  7

  
	
  6.4

  	
  Decision on Review of Denial

  	
   

  	
  7

  
	
  SEVEN ADMINISTRATION OF THE PLAN  

  	
   

  	
  8

  
	
  7.1

  	
  Plan Administrator

  	
   

  	
  8

  
	
  7.2

  	
  Responsibilities

  	
   

  	
  8

  
	
  7.3

  	
  Allocation and Delegation of Plan Administrator
  Responsibilities

  	
   

  	
  8

  
	
  7.4

  	
  Actions of Fiduciaries

  	
   

  	
  8

  
	
  7.5

  	
  General Administrative Powers

  	
   

  	
  8

  
	
  7.6

  	
  Appointment of Professional Assistance

  	
   

  	
  9

  
	
  7.7

  	
  Discretionary Acts

  	
   

  	
  9

  
	
  7.8

  	
  Responsibility of Fiduciaries

  	
   

  	
  9

  
	
  7.9

  	
  Indemnity by Employer

  	
   

  	
  9

  
	
  EIGHT ADOPTION OF PLAN BY SUBSIDIARY  

  	
   

  	
  10

  
	
  NINE AMENDMENT OF THE PLAN  

  	
   

  	
  10

  
	
  TEN TERMINATION OF THE PLAN  

  	
   

  	
  10

  
	
  ELEVEN VESTING

  	
   

  	
  10

  
	
  TWELVE STATUS OF EMPLOYMENT RELATIONS  

  	
   

  	
  11

  
	
  THIRTEEN RESTRICTIONS ON ASSIGNMENT  

  	
   

  	
  11

  
	
  FOURTEEN APPLICABLE LAW

  	
   

  	
  11

  
	
  FIFTEEN INTERPRETATION OF THE PLAN  

  	
   

  	
  11

  

 

i

 

THIRD AMENDED
AND RESTATED

 

EXCO
RESOURCES, INC.

 

SEVERANCE
PLAN

 

EXCO RESOURCES, INC.
(the “Company”) is amending and restating its severance plan, originally adopted
on August 15, 2002, amended and restated as of August 17, 2004,
further amended and restated as of November 8, 2006, and further amended
and restated as of November 14, 2007 (the “Effective Date”), in accordance
with the terms and conditions contained herein. The amended and restated severance
plan adopted on November 8, 2006, is replaced in its entirety with this Third
Amended and Restated EXCO Resources, Inc. Severance Plan (the “Plan”) and
no provision of the November 8, 2006, plan shall survive.

 

SECTION ONE

 

PURPOSE OF PLAN

 

The purpose of the Plan
is to provide financial support to Eligible Employees who incur a Termination
of Employment due to a Change of Control.

 

SECTION TWO

 

PRIOR SEVERANCE
ARRANGEMENTS

 

As
of the Effective Date, the Plan replaces any and all severance pay obligations,
plans, policies, practices, arrangements or programs, written or unwritten,
under which the Eligible Employees may otherwise be eligible for severance
benefit payments. Notwithstanding the foregoing provisions of this Section Two,
nothing in this Plan shall adversely affect the rights an individual Eligible
Employee may have to severance payments under any written agreement
executed by and between the Employer and that Eligible Employee (a “Severance
Agreement”); provided, however, that in the event any Eligible Employee that is
a party to a Severance Agreement suffers a Termination of Employment and is
entitled to and is receiving the severance benefits intended to be provided
under his or her Severance Agreement, such Eligible Employee shall not be
entitled to receive severance benefits pursuant to this Plan.

 

SECTION THREE

 

DEFINITIONS

 

As used in the Plan:

 

3.1           “Base Pay” shall mean
the Eligible Employee’s gross annual salary or wages before any deductions, exclusions
or any deferrals or contributions under any Company plan or program, but
excluding overtime, bonuses, incentive compensation, shift and lead premium
payments, employee benefits or any other form of compensation, being
received by an Eligible Employee immediately prior to employment termination. The
Base Pay for an Eligible Employee paid on an hourly basis shall be the

 

 

individual’s hourly pay
rate in effect immediately prior to the sale multiplied by 40 hours per week
and multiplied by 52 weeks.

 

3.2           “Cause” shall mean (i) the
willful breach or habitual neglect of assigned duties related to the Company,
including compliance with Company policies; (ii) conviction (including any
plea of nolo contendere) of the Eligible Employee of any felony or crime
involving dishonesty or moral turpitude; (iii) any act of personal
dishonesty knowingly taken by the Eligible Employee in connection with his
responsibilities as an employee and intended to result in personal enrichment
of the Eligible Employee or any other person; (iv) bad faith conduct that
is materially detrimental to the Company; (v) inability of the Eligible
Employee to perform the Employee’s duties due to alcohol or illegal drug
use; (vi) the Eligible Employee’s failure to comply with any legal written
directive of the Board of Directors of the Company; (vii) any act or
omission of the Eligible Employee which is of substantial detriment to the
Company because of the Eligible Employee’s intentional failure to comply with
any statute, rule or regulation, except any act or omission believed by
the Eligible Employee in good faith to have been in or not opposed to the best
interest of the Company (without intent of the Eligible Employee to gain,
directly or indirectly, a profit to which the Eligible Employee was not legally
entitled) and except that Cause shall not mean bad judgment or negligence other
than habitual neglect of duty; or (viii) any other act or failure to act
or other conduct which is determined by the Plan Administrator, in its sole
discretion, to be demonstrably and materially injurious to the Employer,
monetarily or otherwise.

 

3.3           “Change of Control”
shall mean

 

(i)            the Company is merged
or consolidated into or with another entity, and as a result of such merger or
consolidation less than a majority of the combined voting power of the
then-outstanding securities of such entity immediately after such transaction
is held by the holders of Voting Stock of the Company immediately prior to such
transaction;

 

(ii)           the Company sells or
otherwise transfers all or substantially all of its assets to any person or
entity, and less than a majority of the combined voting power of the
then-outstanding securities of such person or entity immediately after such
sale or transfer is held by the holders of Voting Stock of the Company
immediately prior to such sale or transfer; or

 

(iii)          any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that for purposes of this clause (iii) such
person shall be deemed to have “beneficial ownership” of all shares that any
such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time, directly or indirectly, of more
than 50% of the total voting power of the Voting Stock of the Company; or

 

(iv)          individuals who on the
Effective Date constituted the Board of Directors of the Company (together with
any new directors whose election by such Board of Directors of the Company or
whose nomination for election by the shareholders of the Company was approved
by a vote of 66-2/3% of the directors of the Company then still in office who
were either directors on the Effective Date or whose election or nomination for
election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of the Company then in office; or

 

(v)           the adoption of a plan
relating to the liquidation or dissolution of the Company.

 

2

 

Provided, however, that
in the event any subsidiary of the Company is spun off by means of a rights
offering to the Company’s shareholders or an underwritten public offering, or
any combination thereof, even where less than a majority of the voting equity
ownership is retained by the Company, shall not in any event constitute a
Change of Control.

 

3.4           “Company” shall mean
EXCO Resources, Inc.

 

3.5           “Comparable Offer of
Employment” shall mean:

 

(i)            that the proposed compensation
and benefits, in the aggregate, to be paid by the Company or any successor to
the Company by merger or acquisition of all or substantially all of the Company’s
assets, offering employment are commensurate with the compensation and benefits
previously paid by the Company, in the aggregate, to such Eligible Employee;

 

(ii)           the Eligible Employee
incurs no demotion in his or her position with the Employer from the position
the Eligible Employee held immediately prior to the effective date of the Change
of Control;

 

(iii)          the Eligible Employee
incurs no significant adverse change in the nature or scope of the authorities,
powers, functions, responsibilities or duties attached to the position or
positions with the Employer which the Eligible Employee held immediately prior
to the effective date of the Change of Control, without the prior written
consent of the Eligible Employee, which is not remedied within ten (10) calendar
days after receipt by the Employer of written notice from the Eligible Employee
of such change; and

 

(iv)          the Eligible Employee’s
principal place of work has not changed to any location that is more than
thirty-five (35) miles from his or her principal place of work immediately
prior to the effective date of the Change of Control, without the prior written
consent of the Eligible Employee.

 

3.6           “Eligible Employee”
shall mean any employee employed by the Company or any subsidiary of the
Company as a regular, full-time employee on the effective date of a Change of
Control and who incurs a Termination of Employment due to a Change of Control
either on the date of the Change of Control or within the six-month period
immediately following the effective date of the Change of Control and such
Termination of Employment was not for Cause.

 

3.7           “Employer” shall mean
the Company and any direct or indirect United States subsidiary of the Company
which adopts the Plan, and any successor to either the Company or any direct or
indirect United States subsidiary of the Company which adopted this Plan.

 

3.8           “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended from time to time. References
to any Section of ERISA shall include any successor provision thereto.

 

3.9           “Exchange Act” shall
mean the Federal Securities Exchange Act of 1934, as amended from time to time.

 

3.10         “Good Reason” shall mean
any of the following events that occur either on the effective date of a Change
of Control or within the six-month period immediately following the effective
date of a Change of Control:

 

3

 

(i)            the Eligible Employee, without his or her
consent, incurs a demotion in his or her position with the Employer from the
position the Eligible Employee held immediately prior to the effective date of
the Change of Control and such demotion constitutes (x) a material diminution
in the Eligible Employee’s authority, duties, or responsibilities; (y) a
material diminution in the budget over which the Eligible Employee retains
authority; or (z) a material diminution in the authority, duties, or
responsibilities of the supervisor to whom the Eligible Employee is required to
report;

 

(ii)           the Eligible Employee,
without his or her consent, incurs a material reduction in his or her Base Pay
from his or her Base Pay immediately prior to the effective date of a Change of
Control;

 

(iii)          the Eligible Employee
incurs a significant adverse change in the nature or scope of the authorities,
powers, functions, responsibilities or duties attached to the position or
positions with the Employer which the Eligible Employee held immediately prior
to the effective date of the Change of Control, without the prior written
consent of the Eligible Employee,. and such change constitutes (x) a material
diminution in the Eligible Employee’s authority, duties, or responsibilities;
(y)  a material diminution in the budget
over which the Eligible Employee retains authority; or (z) a material diminution in the authority,
duties, or responsibilities of the supervisor to whom the Eligible Employee is
required to report; or

 

(iv)          the Eligible Employee’s
principal place of work changed to any location that is more than thirty-five
(35) miles from his or her principal place of work immediately prior to the
effective date of the Change of Control, without the prior written consent of
the Eligible Employee.

 

Notwithstanding anything
to the contrary contained herein, a termination of employment for “Good Reason”
shall occur only if the Eligible Employee provides written notice to the
Company of the occurrence of the event described in this Section 3.10 that
constitutes “Good Reason” within 30 days of the event’s initial existence, the
Company fails to remedy the event within 30 days of its receipt of such notice
and the Eligible Employee terminates his or her employment no later than 30
days following the end of such cure period.

 

3.11         “Internal Revenue Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time. References
to any Section of the Internal Revenue Code shall include any successor
provision thereto.

 

3.12         “Plan” shall mean the Third
Amended and Restated EXCO Resources, Inc. Severance Plan as set forth in
this document, and as hereafter amended.

 

3.13         “Plan Administrator”
shall mean the person, persons or entity administering the Plan in accordance
with the provisions of Section Seven hereof. The Plan Administrator shall
be the “named fiduciary,” as referred to in Section 402(a) of ERISA,
with respect to the management, operation and administration of the Plan.

 

3.14         “Plan Year” shall mean an
initial period starting on November 8, 2006 and ending on December 31,
2006, and thereafter the twelve (12)-month period ending on each December 31.

 

4

 

3.15         “Release Form” shall mean
a release agreement which is to be signed by the Eligible Employee releasing
any and all claims against the Employer and which is in such form as
approved by the Company.

 

3.16         “Severance Pay” shall
mean an amount equal to an Eligible Employee’s Base Pay.

 

3.17         “Termination of
Employment” shall mean a termination of employment from the Employer which
results from an affirmative discharge from employment by the Employer, other
than discharge for Cause. An Eligible Employee who voluntarily terminates
employment for Good Reason shall be deemed to have incurred a Termination of
Employment. An Eligible Employee shall not be deemed to have incurred a
Termination of Employment by reason of the transfer of the Eligible Employee’s
employment between the Company and any subsidiary or among subsidiaries (or
among any department or business unit of the Company). The Plan Administrator
shall determine, in its sole discretion, whether an Eligible Employee’s
termination of employment from the Employer constitutes a “Termination of
Employment.”

 

3.18         “Voting Stock” shall mean
shares of the Company’s Common Stock, par value $0.001 per share, and any other
securities of the Company entitled to vote for the election of directors.

 

3.19         Wherever appropriate,
words used in the Plan in the singular may mean the plural, the plural may mean
the singular, and the masculine may mean the feminine.

 

SECTION FOUR

 

ELIGIBILITY AND SEVERANCE
PAY BENEFITS

 

4.1           Eligibility. Subject
to Sections 4.3 and 4.4 of this Plan, any Eligible Employee is eligible for
Severance Pay following his or her Termination of Employment if such
Termination of Employment occurs either on the effective date of a Change of
Control or within the six-month period immediately following the effective date
of a Change of Control, provided that such Eligible Employee executes a Release
Form pursuant to Section 4.2 of this Plan.

 

4.2           Release Form. An
Eligible Employee otherwise eligible for Severance Pay under this Plan shall be
paid such Severance Pay only if the Eligible Employee executes and files the
appropriate fully completed and executed Release Form (substantially in
the form of Exhibit A-1 or Exhibit A-2, as the case may be,
attached hereto) with the Plan Administrator, in accordance with the
instructions and on or before the date specified on the Release Form or
any document accompanying the Release Form, and in the case of an Eligible
Employee age 40 or over, does not revoke the Release Form within seven (7) days
of executing the Release Form.

 

4.3           Termination of
Eligibility for Severance Pay. An Eligible Employee will cease to be
eligible to receive Severance Pay, under this Plan upon the earlier of the
following:

 

(a)                                  the
Eligible Employee’s death, unless it occurs after the date the Release Form is
executed;

 

(b)                                 the
Eligible Employee’s discharge for Cause or misconduct;

 

5

 

(c)                                  the
Eligible Employee’s failure to execute and file the Release Form by the
date specified on the Form;

 

(d)                                 the
Eligible Employee’s receipt of a Comparable Offer of Employment from any other
operation of the Company or any of its affiliate organizations, regardless of
whether such Eligible Employee accepts such offer; or

 

(e)                                  the
Eligible Employee’s receipt and acceptance of a transfer of employment to any
other operation of the Company or any of its affiliate organizations.

 

4.4           Severance Pay.
The Severance Pay to which an Eligible Employee is entitled shall be paid to
such Employee after the effective date of a Change in Control in cash in a lump
sum within ten (10) days following receipt by the Company of an executed
Release Form or, where applicable, following the expiration of the
revocation period provided for on the Release Form. If an Eligible Employee
fails to return an executed Release Form to the Company within thirty (30)
days following his or her Termination of Employment, such Eligible Employee’s
rights to Severance Pay shall be immediately forfeited and he or she shall not
be entitled to any payments pursuant to this Plan.

 

If
an Eligible Employee dies following execution of the Release Form, but before
receiving all or part of the Severance Pay to which he is entitled, the
Plan Administrator shall pay such Eligible Employee’s Severance Pay to the
Eligible Employee’s estate.

 

SECTION FIVE

 

FUNDING

 

Funding
for this Plan shall come solely from the general assets of the Employer. All
payments of Severance Pay shall be paid from the general assets of the Employer.
Neither the Employer nor the Plan Administrator shall have any obligation to establish
a trust or fund for the payment of benefits under the Plan or to insure any of
the benefits under the Plan. None of the officers, members of the Board of
Directors, or agents of the Employer or the Plan Administrator guarantees in
any manner the payment of benefits hereunder.

 

SECTION SIX

 

CLAIMS PROCEDURE

 

6.1           Filing and Initial
Determination of Claim. An Eligible Employee or his/her duly authorized
representative may file a claim for a benefit to which the claimant
believes that he or she is entitled. Such a claim must be in writing and
delivered to the Plan Administrator by postage prepaid certified mail. Within
fifteen (15) days after receipt of a claim, the Plan Administrator shall send
to the claimant by certified mail, postage prepaid, notice of the granting or
denying, in whole or in part, of such claim, unless special circumstances
require an extension of time for processing the claim. In no event may the
extension exceed fifteen (15) days from the end of the initial period. If such
extension is necessary, the claimant will be given a written notice to this
effect prior to the expiration of the initial 15-day period. The extension
notice shall indicate the special circumstances requiring an extension of time
and the date by which the Plan expects to render the benefit determination. The
Plan Administrator shall have full discretion to deny or grant a claim in whole
or in part. If notice of the denial of a claim is not

 

6

 

furnished in accordance
with this Section 6.1, the claim shall be deemed denied and the claimant
shall be permitted to exercise his/or right to review pursuant to Section 6.3.

 

6.2           Duty of Plan
Administrator Upon Denial of Claim. If
a claim for benefits is denied, the Plan Administrator shall provide to the
claimant written notice setting forth in a manner calculated to be understood
by the claimant: (i) the specific reason or reasons for the denial; (ii) specific
reference to pertinent Plan provisions on which the denial is based; (iii) a
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material is
necessary; and (iv) a description of the Plan’s claims review procedure
and the time limits applicable to such procedures, including a statement of the
claimant’s right to bring a civil action under Section 502(a) of
ERISA following a denial of the claim on review.

 

6.3           Request for Review
of Claim Denial. If an Eligible
Employee receives written notification of the denial in whole or in part of
his/her claim pursuant to Section 6.1, or if an employee is not included
in Schedule A and is therefore not eligible for benefits under this Plan,
within sixty (60) days of the Eligible Employee’s receipt of claim denial or
the date the employee becomes aware that he is not eligible for benefits under
this Plan, if the claimant disagrees with such action, the claimant or his/her
authorized representative shall file a written request with the Plan
Administrator that it conduct a full and fair review of the denial of the claim
for benefits. In connection with any request for a review of the denial of a
claim for benefits, the claimant shall have the opportunity to submit written
comments, documents, records, and other information relating to the claim for
benefits. The Plan Administrator shall provide the claimant, upon request and
free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the claimant’s claim for benefits. A
document, record, or other information shall be considered “relevant” to a
claim for benefits if that document, record or other information: (i) was
relied upon in making the benefit determination; (ii) was submitted,
considered, or generated in the course of making the benefit determination,
without regard to whether such document, record or other information was relied
upon in making the benefit determination; or (iii) demonstrates compliance
with the administrative process and safeguards required by ERISA in making the
benefit determination. The review of a denial shall take into account all
comments, documents, records, and other information submitted by the claimant,
without regard to whether such information was submitted or considered in the initial
benefit determination.

 

6.4           Decision on Review
of Denial. Upon receipt of the
request for review, the Plan Administrator shall review the claim and shall
deliver to the claimant a written decision on the claim for benefits within
sixty (60) days after the receipt of the aforesaid request for review, except
that if there are special circumstances (such as the need to hold a hearing, if
necessary) that require an extension of time for processing, the aforesaid
sixty (60) day period shall be extended to one hundred twenty (120) days and
the claimant will be given written notice of the extension prior to the
expiration of the initial 60-day period. In no event shall such extension
exceed a period of sixty (60) days from the end of the initial 60-day period. The
extension notice shall indicate the special circumstances requiring an
extension of time and the date by which the Plan expects to render the
determination on review.

 

The Plan Administrator’s
decision shall be written in a manner calculated to be understood by the
claimant. Any notice of a denial on review shall include (i) the specific
reason or reasons for the denial on review; (ii) reference to the specific
plan provisions on which the denial is based; (iii) a statement that the
claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of all documents, records, and other information relevant
to the claimant’s claim for benefits; and (iv) a statement of the claimant’s
right to bring an action under Section 502(a) of ERISA. If notice of
the decision on the review is not furnished in accordance with this Section 6.4,
the claim shall be deemed denied and the Plan Administrator will have no
further duty to review such claim.

 

7

 

SECTION SEVEN

 

ADMINISTRATION OF THE
PLAN

 

7.1           Plan Administrator.
The Plan Administrator hereunder shall be the Compensation Committee as
appointed from time to time by the Board of Directors of the Company.

 

7.2           Responsibilities.
The Plan Administrator shall be the “administrator”
(as defined in Section 3(16)(A) of ERISA) of the Plan, and shall be
responsible for all obligations under the Internal Revenue Code and ERISA and
all other obligations required or permitted to be performed by the Plan
Administrator and not otherwise delegated pursuant to the Plan. The Plan
Administrator shall be the designated agent for service of legal process.

 

7.3           Allocation and
Delegation of Plan Administrator Responsibilities. The Plan Administrator may appoint
such assistants or representatives as it deems necessary for the effective
exercise of its duties in administering the Plan and may delegate to such
assistants and representatives any powers and duties, both ministerial and
discretionary, as it deems expedient or appropriate. The Plan Administrator
also may designate any person, firm or corporation to carry out any of the
other responsibilities of the Plan Administrator under the Plan. Any such
allocation or designation shall be made pursuant to a written instrument
executed by the Plan Administrator.

 

7.4           Actions of
Fiduciaries. The Plan Administrator may authorize or approve any
action by written instrument signed by a person duly authorized to act on
behalf of the Plan Administrator. Any written memorandum signed by any such
duly authorized person or by any other person duly authorized by the Plan
Administrator to act in respect of the subject matter of the memorandum, shall
have the same force and effect as a formal resolution adopted by the Plan Administrator.

 

All acts and
determinations with respect to the administration of the Plan made by the Plan
Administrator and any assistants or representatives appointed by it shall be
duly recorded by the Plan Administrator or by the assistant or representative
appointed by it to keep such records. All records, together with such other
documents as may be necessary for the administration of the Plan, shall be
preserved in the custody of the Plan Administrator or the assistants or
representatives appointed by it.

 

7.5           General
Administrative Powers. Except as otherwise provided herein, the Plan
Administrator is authorized to take such actions as may be necessary to
carry out the provisions and purposes of the Plan and shall have the authority
to control and manage the operation and administration of the Plan. In order to
effectuate the purposes of the Plan, the Plan Administrator shall have the
discretionary authority and power to construe and interpret the Plan, to supply
any omissions therein, to reconcile and correct any errors or inconsistencies,
to decide any questions in the administration and application of the Plan, and
to make equitable adjustments for any mistakes or errors made in the
administration of the Plan. All such actions or determinations made in good
faith by the Plan Administrator, and the application of rules and
regulations to a particular case or issue by the Plan Administrator shall,
subject to the claims procedures set forth in Section Six hereof, not be
subject to review by anyone, but shall be final, binding and conclusive on all
persons ever interested hereunder. In construing the Plan and in exercising its
power under provisions requiring the Plan Administrator’s approval, the Plan
Administrator shall attempt to ascertain the purpose of the provisions in
question and when such purpose is known or reasonably ascertainable, such
purpose shall be given effect to the extent

 

8

 

feasible. In the
discharge of this discretionary authority the Plan Administrator shall have all
necessary powers and duties, including but not limited to the following:

 

(a)           to require any person
to furnish such information as is reasonably necessary or appropriate for
administration of the Plan as a condition to receiving benefits under the Plan;

 

(b)           to make such rules and
regulations and prescribe the use of such forms as he shall deem necessary for
the efficient administration of the Plan;

 

(c)           to establish or cause
to be established such procedures, protocols and guidelines as he shall deem
necessary to interpret the terms and conditions of the Plan;

 

(d)           to decide on questions
concerning Plan eligibility, Years of Employment and employment termination in
accordance with the terms of the Plan;

 

(e)           to determine the amount
of benefits payable to an Eligible Employee, in accordance with the Plan, and
to provide a full and fair review to any Eligible Employee whose claim for
benefits has been denied in whole or in part; and

 

(f)            to designate other
persons to carry out any duty or power which would otherwise be a fiduciary
responsibility of the Plan Administrator, under the terms of the Plan.

 

7.6           Appointment of
Professional Assistance. The Plan Administrator may engage
accountants, attorneys and such other personnel as it deems necessary or
advisable. The functions of any such persons engaged by the Plan Administrator
shall be limited to the specific services and duties for which they are
engaged, and such persons shall have no other duties, obligations or
responsibilities under the Plan. Unless otherwise specifically so delegated,
such persons shall exercise no discretionary authority or discretionary control
respecting the management of the Plan.

 

7.7           Discretionary Acts.
Any discretionary actions of the Plan Administrator with respect to the
administration of the Plan shall be made in a manner which does not
discriminate in favor of stockholders, officers and highly compensated
employees.

 

7.8           Responsibility of
Fiduciaries. The Plan Administrator
and its assistants and representatives shall be free from all liability for
their acts and conduct in the administration of the Plan except for acts of
gross negligence, fraud or willful misconduct; provided, however, that the
foregoing shall not relieve any of them from any responsibility or liability
for any responsibility, obligation or duty that they may have pursuant to
ERISA.

 

7.9           Indemnity by
Employer. In the event and to the
extent not insured against by any insurance company pursuant to provisions of
any applicable insurance policy, the Employer shall indemnify and hold harmless
the Plan Administrator and its assistants and representatives from any and all
claims, demands, suits or proceedings in connection with the Plan that may be
brought by the Employer’s employees or their legal representatives, or by any
other person, corporation, entity, government or agency thereof, including any
amounts paid in settlement, with the approval of the Plan Administrator, and
any and all other losses, damages, interest, expenses, including counsel fees
approved by the Plan Administrator, and penalties, including any penalties
imposed by the Secretary of Labor pursuant to Section 502(l) of ERISA
relating to any breaches of fiduciary responsibility under Part 4 of
Title I of ERISA, arising from any action or failure to act, except where
the same is judicially determined to be due to gross negligence, fraud, or
willful misconduct of such individual in connection with the Plan.

 

9

 

The
indemnification contained in this Section shall apply regardless of
whether the event causing the liability arises in whole or in part from
the negligence (other than judicially determined gross negligence) or other
fault on the part of the individual, specifically including breaches of
fiduciary responsibility under ERISA.

 

SECTION EIGHT

 

ADOPTION OF PLAN BY
SUBSIDIARY

 

Any
subsidiary of the Company, whether or not presently existing, may, with the
approval of the Plan Administrator, adopt this Plan. Any such subsidiary that
adopts the Plan is thereafter an Employer with respect to its employees for
purposes of the Plan.

 

SECTION NINE

 

AMENDMENT OF THE PLAN

 

The
Plan Administrator may amend the Plan at any time and in any manner with
respect to all of the Employees. Any amendment to this Plan shall be
effectuated by a written instrument signed by the Plan Administrator and shall
be incorporated into the Plan document. Any amendment or restatement may be
made retroactive if, in the judgment of the Plan Administrator, such retroactivity
is necessary or advisable for any reason. Notwithstanding the above, this Plan may not
be terminated or amended within six months following a Change in Control.

 

SECTION TEN

 

TERMINATION OF THE PLAN

 

Continuance
of the Plan is not assumed as a contractual obligation of the Employer, and the
Plan Administrator reserves the right to terminate the Plan at any time.
Notwithstanding the above, this Plan may not be terminated or amended
within six months following a Change in Control. Such termination may occur
without consent being obtained from the Plan Administrator, Eligible Employees
or any other interested person. The Plan shall automatically terminate upon
dissolution of the Company, unless provision is specifically made by its
successors, if any, for the continuation of the Plan. If not sooner terminated,
this Plan shall terminate when all liabilities provided for hereunder have been
fully discharged.

 

SECTION ELEVEN

 

VESTING

 

No
Eligible Employee shall have a vested right to any benefit under this Plan
prior to the time a determination is made by the Plan Administrator that the
particular Eligible Employee is entitled to receive benefits under the Plan. At
any time prior to such determination the Plan may be amended or terminated
with respect to any benefits to which such Eligible Employee would otherwise
have been entitled.

 

10

 

SECTION TWELVE

 

STATUS OF
EMPLOYMENT RELATIONS

 

The
adoption and maintenance of the Plan shall not be deemed to constitute a
contract between any Employer and its employees or to be consideration for, or
an inducement or condition of, the employment of any person. Nothing herein
contained shall be deemed (i) to give to any employee the right to be
retained in the employ of the Employer; (ii) to affect the right of the
Employer to discipline or discharge any employee at any time; (iii) to
give the Employer the right to require any employee to remain in its employ; or
(iv) to affect any employee’s right to terminate his employment at any
time.

 

SECTION THIRTEEN

 

RESTRICTIONS ON
ASSIGNMENT

 

The
benefits provided hereunder are not subject in any manner to the debts or other
obligations of the persons to whom they are payable. The interest of an
Eligible Employee may not be sold, transferred, assigned or encumbered in
any manner, either voluntarily or involuntarily, and any attempt so to
anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the
same shall be null and void.

 

SECTION FOURTEEN

 

APPLICABLE LAW

 

To
the extent not preempted by ERISA, the Plan shall be construed, regulated,
interpreted and administered under and in accordance with the laws of the State
of Texas.

 

SECTION FIFTEEN

 

INTERPRETATION OF
THE PLAN

 

It
is the intention of the Employers that the Plan shall comply with the Internal
Revenue Code, and the regulations thereunder, the requirements of ERISA and the
corresponding provisions of any subsequent laws; the provisions of the Plan
shall be construed to effectuate such intention.

 

11

 

IN
WITNESS WHEREOF, EXCO Resources, Inc. has caused the Plan to be signed by
its duly authorized officer on this 14th day of November, 2007.

 

 

	
  

  	
  EXCO
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas H. Miller

  
	
   

  	
   

  
	
   

  	
  Its: Chief Executive
  Officer

  

 

12

 

Exhibit A-1

40+

 

RELEASE
AGREEMENT

 

IN RETURN FOR THE
CONSIDERATION of payment of severance benefits to me from EXCO Resources, Inc.
(“EXCO”) in accordance with EXCO Resources, Inc. Severance Plan, I am
entering into this Release Agreement. I understand and agree that the severance
payment is in addition to the other (non-severance) benefits to which I may be
entitled under the normal policies and procedures applicable to employees of
EXCO as a result of my termination of employment from EXCO.

 

I,                                                               ,
on behalf of myself, my heirs, executors, successors and assigns hereby
irrevocably and unconditionally RELEASE, WAIVE, AND FOREVER DISCHARGE EXCO and
all of its parents, divisions, subsidiaries and affiliates, and their present
and former agents, employees, officers, directors, partners, stockholders,
successors and assigns (hereinafter collectively “Releasees”) from any and all
claims, demands, actions and causes of action, and all liability whatsoever,
whether known or unknown, fixed or contingent, which I have or may have
against Releasees as a result of my employment by or subsequent termination as
an employee of EXCO, or failure to be hired by any Releasee, up to the date of
execution of this Release Agreement. This Release Agreement includes but is not
limited to claims at law or equity or sounding in contract (express or implied)
or tort arising under federal, state or local laws prohibiting age, sex, race,
national origin, disability, religion, veteran or any other forms of
discrimination (including but not limited to Title VII of the Civil Rights
Act of 1964, the Rehabilitation Act of 1973, the Americans with Disabilities
Act, as well as applicable state fair employment practices laws), claims
arising under the Fair Labor Standards Act, the National Labor Relations Act,
the Worker Adjustment and Retraining Notification Act, the Family and Medical
Leave Act, the Employee Retirement Income Security Act, or any other legal and
equitable claims regarding my employment with EXCO, the continuation of
employment or the termination of said employment.

 

I understand and agree
that this Release Agreement shall not in any way be construed as an admission
by Releasees of any unlawful or wrongful acts whatsoever against me or any
other person, and Releasees specifically disclaim any liability to or wrongful
acts against me or any other person.

 

I acknowledge that I have
been advised in writing by EXCO that I should consult an attorney prior to
executing this Release Agreement, and I further acknowledge that I have been
given a period of forty-five (45) calendars days after my termination by EXCO
within which to review and consider the provisions of this Release Agreement.

 

I acknowledge that I have
been given information regarding the ages and job titles of persons affected
and unaffected by these terminations of employment.

 

I understand and
acknowledge that I have seven (7) calendar days following the execution of
this Release Agreement to revoke my acceptance of this Release Agreement and
that this Release Agreement shall not become effective and the severance shall
not become payable until this revocation period has expired. In order to revoke
this Release Agreement, I acknowledge that I am required to deliver written
notice clearly stating my intent to revoke to [Insert
Name and Address of Contact Person at Company]. I agree that my
notice will not be considered effective unless [Mr./Ms. Insert Name], or a representative designated by
EXCO, receives it within the seven calendar days following my execution of this
Release Agreement.

 

13

 

I understand it is my
choice whether or not to enter into this Release Agreement and that my decision
to do so is voluntary and made knowingly.

 

Please
read carefully as this document includes a release of claims.

 

As evidenced by my
signature below, I hereby certify that I have read the above Release Agreement
and agree to its terms.

 

 

	
  Dated
  this                       
  day of                                                       ,
  2006.

  
	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
  EMPLOYEE SIGNATURE

  

 

14

 

Exhibit A-2

Under
40

 

RELEASE AGREEMENT

 

IN RETURN FOR THE
CONSIDERATION of payment of severance benefits to me from EXCO Resources, Inc.
(“EXCO”) in accordance with the EXCO Resources, Inc. Severance Plan, I am
entering into this Release Agreement. I understand and agree that the severance
payment is in addition to the other (non-severance) benefits to which I may be
entitled under the normal policies and procedures applicable to employees of
EXCO as a result of my termination of employment from EXCO.

 

I,                                                ,
on behalf of myself, my heirs, executors, successors and assigns hereby
irrevocably and unconditionally RELEASE, WAIVE, AND FOREVER DISCHARGE EXCO and
all of its parents, divisions, subsidiaries and affiliates, and their present
and former agents, employees, officers, directors, partners, stockholders,
successors and assigns (hereinafter collectively “Releasees”) from any and all
claims, demands, actions and causes of action, and all liability whatsoever,
whether known or unknown, fixed or contingent, which I have or may have
against Releasees as a result of my employment by or subsequent termination as
an employee of EXCO, or failure to be hired by any Releasee, up to the date of
execution of this Release Agreement. This Release Agreement includes but is not
limited to claims at law or equity or sounding in contract (express or implied)
or tort arising under federal, state or local laws prohibiting age, sex, race,
national origin, disability, religion, veteran or any other forms of
discrimination (including but not limited to Title VII of the Civil Rights
Act of 1964, the Rehabilitation Act of 1973, the Americans with Disabilities
Act, as well as applicable state fair employment practices laws), claims
arising under the Fair Labor Standards Act, the National Labor Relations Act,
the Worker Adjustment and Retraining Notification Act, the Family and Medical
Leave Act, the Employee Retirement Income Security Act, or any other legal and
equitable claims regarding my employment with EXCO, the continuation of
employment or the termination of said employment.

 

I understand and agree
that this Release Agreement shall not in any way be construed as an admission
by Releasees of any unlawful or wrongful acts whatsoever against me or any other
person, and Releasees specifically disclaim any liability to or wrongful acts
against me or any other person.

 

I acknowledge that I have
been advised in writing by EXCO that I should consult an attorney prior to
executing this Release Agreement, and further acknowledge that I have been
given a period of ten (10) calendar days after my termination by EXCO
within which to review and consider the provisions of this Release Agreement.

 

I understand and
acknowledge that once I have executed this Release Agreement, it is immediately
binding and may not be revoked or rescinded by either party.

 

I understand it is my
choice whether or not to enter into this Release Agreement and that my decision
to do so is voluntary and is made knowingly.

 

15

 

Please
read carefully as this document includes a release of claims.

 

As evidenced by my
signature below, I hereby certify that I have read the above Release Agreement
and agree to its terms.

 

 

	
  Dated
  this                       
  day of                                                       ,
  2006.

  
	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
  EMPLOYEE SIGNATURE

  

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]