Document:

Exhibit 4.2

 

EXECUTION VERSION

 

EXCO RESOURCES, INC.

 

Hybrid Preferred Stock

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”), dated March 28,
2007, among EXCO Resources, Inc., a Texas corporation (the “Company”),
and the purchasers of the Hybrid Shares (as defined below) signatory hereto
(each such purchaser, a “Purchaser” and all such purchasers
collectively, the “Purchasers”), is entered into pursuant to that
certain Preferred Stock Purchase Agreement, dated the date hereof, among the
Company and the Purchasers (the “Purchase Agreement”), providing for the
Company’s issuance and sale of (a) an aggregate of 39,008 shares (the “7.0%
Preferred Shares”) of 7.0% Preferred Stock, in the series and amounts
set forth on Schedule A to the Purchase Agreement, and (b) 160,992
shares (the “Hybrid Shares” and together with the 7.0% Preferred Shares,
the “Purchased Shares”) of Hybrid Preferred Stock, in the series and
amounts set forth on Schedule A to the Purchase Agreement.

 

1.                                       Shelf Registration. If any Registrable Shares are outstanding
on September 26, 2007, the Company shall take the following actions:

 

(a)                                  The Company shall, as soon as practicable but
in any event by December 24, 2007, file with the Securities and Exchange
Commission (the “Commission”), and thereafter use its best efforts to
cause to be declared effective no later than March 24, 2008, subject to Section 2(h),
a registration statement (the “Shelf Registration Statement”) on an
appropriate form under the Securities Act relating to the offer and sale
of the Registrable Shares by the Holders thereof from time to time in
accordance with the methods of distribution set forth in the Shelf Registration
Statement (which shall be substantially in the form of Annex B hereto
except to the extent revised pursuant to comments received from the staff of
the Commission or otherwise required by applicable law or regulation) and Rule 415
under the Securities Act (hereinafter, the “Shelf Registration”); provided, however,
that no Holder shall be entitled to have the Registrable Shares held by it
covered by such Shelf Registration Statement unless such Holder agrees in
writing to be bound by all the provisions of this Agreement applicable to such
Holder and submits a Notice and Questionnaire.

 

(b)                                 The Company shall use its best efforts to
keep the Shelf Registration Statement continuously effective, in order to
permit the prospectus included therein to be lawfully delivered by the Holders
of the Registrable Shares included therein, until the earlier of (i) the
date on which all Registrable Shares covered by the Shelf Registration
Statement cease to be Registrable Shares or (ii) the NYSE Approval Date
(such period being called the “Shelf Registration Period”). The Company
shall be deemed not to have used its best efforts to keep the Shelf
Registration Statement effective during the Shelf Registration Period if it
voluntarily takes any action that would result in Holders of Registrable Shares
covered thereby not being able to offer and sell such Registrable Shares during
that period, unless such action is required by applicable law or except as
provided in Section 2(h).

 

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(c)                                  Notwithstanding any other provisions of this
Agreement to the contrary, the Company shall cause (i) the Shelf
Registration Statement (as of the effective date of the Shelf Registration
Statement), any amendment thereof (as of the effective date thereof) or
supplement thereto (as of its date), (A) to comply in all material
respects with the applicable requirements of the Securities Act and the rules and
regulations of the Commission and (B) not to 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 (ii) any related prospectus, preliminary prospectus or Free Writing
Prospectus and any amendment thereof or supplement thereto, as of its date, (A) to
comply in all material respects with the applicable requirements of the
Securities Act and the rules and regulations of the Commission and (B) not
to 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 light of the circumstances under which they were made, not
misleading; provided, however, the Company shall have no such
obligations or liabilities with respect to any written information pertaining
to any Holder and furnished to the Company by or on behalf of such Holder
specifically for inclusion therein.

 

(d)                                 The Company shall use its best efforts to
cause the Registrable Shares included in the Shelf Registration Statement to
be, upon resale thereunder, listed on the New York Stock Exchange, Inc.
(the “NYSE”) or, if the Common Stock is not then listed on the NYSE, on
the principal national securities exchange on which the Common Stock is then
listed, or if the Common Stock is not then listed on a national securities
exchange, authorized for quotation on any automated quotation system on which
the Common Stock is then quoted.

 

2.                                       Registration Procedures. In connection with the Shelf Registration
contemplated by Section 1 hereof, the following provisions shall apply:

 

(a)                                  At the time the Commission declares such
Shelf Registration Statement effective, each Holder that became a Notice Holder
on or prior to the date ten (10) Business Days prior to the time of
effectiveness shall be named as a selling security holder in the Shelf
Registration Statement and the related prospectus in such a manner as to permit
such Holder to deliver such prospectus to purchasers of Registrable Shares
included in the Shelf Registration Statement in accordance with applicable law,
subject to the terms and conditions hereof. Following the effective date of the
Shelf Registration Statement, each Holder that is not a Notice Holder wishing
to sell Registrable Shares pursuant to the Shelf Registration Statement and the
related prospectus agrees to deliver a Notice and Questionnaire to the Company
at least five (5) Business Days prior to any intended distribution by such
Holder of Registrable Shares under the Shelf Registration Statement. From and
after the date the Shelf Registration Statement is declared effective, the
Company shall, as promptly as practicable after the date a Notice and
Questionnaire is delivered, and in any event upon the later of (x) five (5) Business
Days after such date or (y) five (5) Business Days after the expiration of
any Deferral Period that is either in effect when the Notice and Questionnaire
is delivered or put into effect within five (5) Business Days of such
delivery date:

 

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(i)                                     if required by applicable law, prepare and
file with the Commission a post-effective amendment to the Shelf Registration
Statement or prepare and, if required by applicable law, file a supplement to
the related prospectus or a supplement or amendment to any document
incorporated therein by reference or file with the Commission any other
required document so that the Holder delivering such Notice and Questionnaire
is named as a selling security holder in the Shelf Registration Statement and
the related prospectus in such a manner as to permit such Holder to deliver
such prospectus to purchasers of such Holder’s Registrable Shares included in
the Shelf Registration Statement in accordance with applicable law and, if the
Company shall file a post-effective amendment to the Shelf Registration
Statement, use its best efforts to cause such post-effective amendment to be
declared effective under the Securities Act as promptly as is practicable, but
in any event by the date (the “Amendment Effectiveness Deadline Date”)
that is ninety (90) days after the date such post-effective amendment is
required by this clause to be filed;

 

(ii)                                  provide such Holder copies of any documents
filed pursuant to Section 2(a)(i); and

 

(iii)                               notify such Holder as promptly as practicable
after the effectiveness under the Securities Act of any post-effective
amendment filed pursuant to Section 2(a)(i);

 

provided, that if such Notice and Questionnaire is delivered during a Deferral
Period (as defined in Section 2(h)), the Company shall so inform the
Holder delivering such Notice and Questionnaire and shall take the actions set
forth in clauses (i), (ii) and (iii) above upon expiration of the
Deferral Period in accordance with this Section 2(a) and Section 2(h) of
this Agreement. Notwithstanding anything contained herein to the contrary, (i) the
Company shall be under no obligation to name any Holder that is not a Notice
Holder as a selling security holder in the Shelf Registration Statement or
related prospectus and (ii) the Amendment Effectiveness Deadline Date
shall be extended by up to ten (10) Business Days from the expiration of a
Deferral Period (and the Company shall incur no obligation to pay Liquidated
Damages during such extension) if such Deferral Period shall be in effect on
the Amendment Effectiveness Deadline Date; provided,
further, that in no event shall
the Company be required to file pursuant to this Section 2(a) in the
case where a post-effective amendment is required, more than one post-effective
amendment to the Shelf Registration Statement in any 60-day period.

 

(b)                                 The Company shall notify the Holders of the
Registrable Shares included within the coverage of the Shelf Registration
Statement (which notice may, at the discretion of the Company (or as required
pursuant to Section 2(h)), state that it constitutes a Deferral Notice, in
which event the provisions of Section 2(h) shall apply):

 

(i)                                     when the Shelf Registration Statement or any
amendment thereto has been filed with the Commission and when the Shelf
Registration Statement or any post-effective amendment thereto has become
effective;

 

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(ii)                                  of any request by the Commission for
amendments or supplements to the Shelf Registration Statement or the prospectus
included therein or for additional information;

 

(iii)                               of the issuance by the Commission of any stop
order suspending the effectiveness of the Shelf Registration Statement or the
initiation of any proceedings for that purpose and of any other action, event
or failure to act that would cause the Shelf Registration Statement not to
remain effective;

 

(iv)                              of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any Registrable Shares for sale in any jurisdiction or
the initiation of any proceeding for such purpose; and

 

(v)                                 of the occurrence of any Material Event (as
defined in Section 2(h)).

 

(c)                                  The Company shall use its best efforts to
obtain the withdrawal at the earliest possible time of any stop order
suspending the effectiveness of the Shelf Registration Statement and the
elimination of any other impediment to the continued effectiveness of the Shelf
Registration Statement.

 

(d)                                 The Company shall promptly furnish to each
Holder of Registrable Shares included within the coverage of the Shelf
Registration, without charge, if the Holder so requests in writing, at least
one conformed copy of the Shelf Registration Statement and any post-effective
amendment thereto, including financial statements and schedules and all
exhibits thereto (including those, if any, incorporated by reference).

 

(e)                                  The Company shall promptly deliver to each
Holder of Registrable Shares included within the coverage of the Shelf
Registration Statement, without charge, as many copies of the prospectus
(including each preliminary prospectus) included in the Shelf Registration
Statement and any amendment thereof or supplement thereto and any Free Writing
Prospectus used in connection therewith as such Holder may reasonably
request. The Company consents, subject to the provisions of this Agreement and
except during such periods that a Deferral Notice is outstanding and has not
been revoked, to the use of the prospectus and each amendment or supplement
thereto and any Free Writing Prospectus used in connection therewith by each of
the selling Holders in connection with the offering and sale of the Registrable
Shares covered by the prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

 

(f)                                    The Company shall use its best efforts to
register or qualify, or cooperate with the Holders of the Registrable Shares
included in the Shelf Registration Statement and their respective counsel in
connection with the registration or qualification of, the resale of the
Registrable Shares under the securities or “blue sky” laws of such states of
the United States as any Holder requests in writing and to do any and all other
acts or things necessary or advisable to enable the offer and sale in such
jurisdictions of the Registrable Shares covered by the Shelf Registration Statement;
provided, however, that

 

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the
Company shall not be required to (i) qualify generally to do business in
any jurisdiction where it is not then so qualified or (ii) take any action
that would subject it to general service of process or to taxation in any
jurisdiction to which it is not then so subject.

 

(g)                                 The Company shall cooperate with the Holders
of the Registrable Shares to facilitate the timely preparation and delivery of
certificates representing the Registrable Shares to be delivered to a
transferee pursuant to the Shelf Registration Statement, which certificates
shall be free of any restrictive legends and in such denominations and
registered in such names as the Holders may request.

 

(h)                                 Upon (i) the issuance by the Commission
of a stop order suspending the effectiveness of the Shelf Registration
Statement or the initiation of proceedings with respect to the Shelf
Registration Statement under Section 8(d) or 8(e) of the
Securities Act, (ii) the occurrence of any event or the existence of any
fact (a “Material Event”) as a result of which (x) the Shelf
Registration Statement shall contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading or (y) any prospectus included in
the Shelf Registration Statement shall contain any untrue statement of a
material fact or omit to state any 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, or (iii) the occurrence or
existence of any pending corporate development that, in the reasonable judgment
of the Company, makes it necessary to suspend the availability of the Shelf
Registration Statement and the related prospectus for a period of time:

 

(A)                              in the case of clause (ii) above,
subject to clause (B) below, as promptly as practicable, the Company shall
prepare and file, if necessary pursuant to applicable law, a post-effective
amendment to such Shelf Registration Statement or a supplement to the related
prospectus or any document incorporated therein by reference or file any other
required document that would be incorporated by reference into such Shelf
Registration Statement and related prospectus so that (1) such Shelf
Registration Statement does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading and (2) such prospectus does
not contain any untrue statement of a material fact or omit to state any
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, as thereafter delivered to the purchasers of the Registrable Shares
being sold thereunder, and, in the case of a post-effective amendment to the
Shelf Registration Statement, subject to the next sentence, use its best
efforts to cause it to be declared effective as promptly as is practicable; and

 

(B)                                the Company shall give notice to the Notice
Holders with respect to such Shelf Registration Statement, that the
availability of the Shelf Registration Statement is suspended (a “Deferral
Notice”) and, upon

 

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receipt
of any Deferral Notice, each Notice Holder agrees not to sell any Registrable
Shares pursuant to the Shelf Registration Statement until such Notice Holder’s
receipt of copies of the supplemented or amended prospectus provided for in
clause (A) above, or until it is advised in writing by the Company that
the prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such prospectus.

 

The
Company will use its best efforts to ensure that the use of the prospectus with
respect to the Shelf Registration Statement may be resumed (x) in the case
of clause (i) above, as promptly as is practicable, (y) in the case of
clause (ii) above, as soon as, in the reasonable judgment of the Company,
public disclosure of such Material Event would not be prejudicial to or
contrary to the interests of the Company or as soon as practicable thereafter
and (z) in the case of clause (iii) above, as soon as, in the reasonable
judgment of the Company, such suspension is no longer necessary; provided, that in no event shall (A) the
aggregate duration of any such suspension arising from an event described in
clause (iii) above exceed 60 days, (B) the aggregate duration of all
such suspensions arising from events described in clause (iii) above
exceed 90 days in any 12-month period or (C) a suspension arising from an
event described in clause (iii) above be invoked more than twice in any
12-month period. Any such period during which the availability of the Shelf
Registration Statement and any related prospectus is suspended is referred to
as the “Deferral Period.”

 

(i)                                     Not later than the effective date of the
Shelf Registration Statement, the Company will provide CUSIP numbers for the
Registrable Shares registered for resale under the Shelf Registration
Statement, and provide the transfer agent for the Registrable Shares one or
more certificates for such Registrable Shares, in a form eligible for
deposit with The Depository Trust Company.

 

(j)                                     The Company will comply with all rules and
regulations of the Commission to the extent and so long as they are applicable
to the Shelf Registration and will make generally available to its security
holders (or otherwise provide in accordance with Section 11(a) of the
Securities Act) an earnings statement (which need not be audited) satisfying
the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder, no later than 45 days after the end of a 12-month period (or 90
days, if such period is a fiscal year) beginning with the first month of the
Company’s first fiscal quarter commencing after the effective date of the Shelf
Registration Statement, which statement shall cover such 12-month period.

 

(k)                                  If requested in writing in connection with a
disposition of Registrable Shares pursuant to the Shelf Registration Statement,
make reasonably available for inspection during normal business hours by a
representative for the Notice Holders of a majority of the number of such
Registrable Shares, any broker-dealers, attorneys and accountants retained by
such Notice Holders, and any attorneys or other agents retained by a
broker-dealer engaged by such Notice Holders, all relevant financial and other
records and pertinent corporate documents and properties of the Company and its
subsidiaries, and cause the appropriate officers, directors and employees of
the Company

 

6

 

and
its subsidiaries to make reasonably available for inspection during normal
business hours on reasonable notice all relevant information reasonably
requested by such representative for the Notice Holders, or any such
broker-dealers, attorneys or accountants in connection with such disposition,
in each case as is customary for similar “due diligence” examinations; provided, that such persons shall first
agree in writing with the Company that any information that is reasonably and
in good faith designated by the Company in writing as confidential at the time
of delivery of such information shall be kept confidential by such persons and
shall be used solely for the purposes of exercising rights under this
Agreement, unless (i) disclosure of such information is required by court
or administrative order or is necessary to respond to inquiries of regulatory
authorities, (ii) disclosure of such information is required by law
(including any disclosure requirements pursuant to federal securities laws in
connection with the filing of the Shelf Registration Statement or the use of
any prospectus or Free Writing Prospectus referred to in this Agreement) or (iii) such
information becomes generally available to the public other than as a result of
a disclosure or failure to safeguard by any such person, and provided further
that the foregoing inspection and information gathering shall, to the greatest
extent possible, be coordinated on behalf of all the Notice Holders and the
other parties entitled thereto by one legal counsel (“Holders Counsel”)
designated by the Notice Holders of a majority of the number of Registrable
Shares with respect to the Shelf Registration Statement.

 

(l)                                     The Company shall (i) permit such
Holders Counsel to review and comment upon (A) the Shelf Registration
Statement at least five (5) Business Days prior to its filing with the
Commission and (B) all Free Writing Prospectuses and all amendments and
supplements to the Shelf Registration Statement within a reasonable number of
days prior to their filing with the Commission, and (ii) not file the
Shelf Registration Statement or amendment thereof or supplement thereto or any
Free Writing Prospectus in a form to which such Holders Counsel reasonably
objects. The Company shall furnish to such Holders Counsel, without charge,
unless otherwise publicly available on the Commission’s EDGAR system, (x)
copies of any correspondence from the Commission or the staff of the Commission
to the Company or its representatives relating to the Shelf Registration Statement
or any document incorporated by reference therein, (y) promptly after the same
is prepared and filed with the Commission, one copy of the Shelf Registration
Statement and any amendment(s) thereto, including financial statements and
schedules, all documents incorporated therein by reference, if requested by a
Notice Holder, and all exhibits and (z) promptly upon the effectiveness of the
Shelf Registration Statement, one copy of the prospectus included in the Shelf
Registration Statement and all amendments and supplements thereto. The Company
shall reasonably cooperate with such Holders Counsel in performing the Company’s
obligations pursuant to this Section 2.

 

(m)                               The Company shall make such representations
and warranties to the Holders of Registrable Shares included in the Shelf
Registration Statement and to any underwriters in connection with such
disposition in form, substance and scope as are customarily made by issuers to
underwriters in primary underwritten offerings. The Company will enter into and
perform customary agreements (including underwriting and indemnification
and contribution agreements in customary form with the managing

 

7

 

underwriter
or underwriters, as applicable) and take such other commercially reasonable
actions as are required in order to expedite or facilitate each disposition of
Registrable Shares and shall provide all reasonable cooperation, including
causing appropriate officers to attend and participate in “road shows” and
other information meetings organized by the managing underwriter or
underwriters, if applicable.

 

(n)                                 If reasonably requested by a Holder, the
Company shall as soon as practicable (i) incorporate in a prospectus
supplement or post-effective amendment such information as such Holder
reasonably requests to be included therein relating to the sale and
distribution of Registrable Shares, including, without limitation, information
with respect to the number of Registrable Shares being offered or sold, the
purchase price being paid therefor and any other terms of the offering of the
Registrable Shares to be sold in such offering; (ii) make all required
filings of such prospectus supplement or post-effective amendment after being
notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and (iii) supplement or make amendments to the
Shelf Registration Statement if reasonably requested by a Holder holding any
Registrable Shares.

 

(o)                                 The Company shall obtain opinions of counsel to
the Company and updates thereof (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the managing underwriters, if
any) addressed to each selling Holder of Registrable Shares included in the
Shelf Registration Statement and the underwriters, if any, covering such
matters as are customarily covered in opinions requested in underwritten
offerings and such other matters as may be reasonably requested by such
Holders and underwriters.

 

(p)                                 The Company shall obtain “comfort” letters
and updates thereof from the independent certified public accountants of the
Company(and, if necessary, any other independent certified public accountants
of any subsidiary of the Company or of any business acquired by the Company for
which financial statements and financial data are, or are required to be,
included in, or incorporated by reference into, the Shelf Registration
Statement), addressed to each selling Holder of Registrable Shares included in
the Shelf Registration Statement and the underwriters, if any, in customary form and
covering matters of the type customarily covered in “comfort” letters in
connection with underwritten offerings.

 

(q)                                 If any Holder is deemed to be, alleged to be
or reasonably believes it may be deemed or alleged to be, an underwriter
or is required under applicable securities laws to be described in the Shelf
Registration Statement as an underwriter, at the reasonable request of such
Holder, the Company shall use its best efforts to cause to be furnished to such
Holder, on the date of the effectiveness of the Shelf Registration Statement
and thereafter from time to time on such dates as such Holder may reasonably
request (i) a letter, dated such date, from the Company’s independent
certified public accountants (and, if necessary, any other independent
certified public accountants of any subsidiary of the Company or of any
business acquired by the Company for which financial statements and financial
data are, or are required to be, included in, or incorporated by reference
into, the Shelf Registration Statement) in form and substance as is
customarily given by

 

8

 

independent
certified public accountants to underwriters in an underwritten public
offering, addressed to the Holders, and (ii) a legal opinion, dated as of
such date, in form, scope and substance as is customarily given in an
underwritten public offering, addressed to the Holders.

 

Notwithstanding the
foregoing, the actions set forth in Sections 2(m), (o) and (p) shall only be
performed in connection with an underwritten offering and only if requested by
the underwriters thereof.

 

3.                                       Holder’s Obligations. Each Holder agrees, by acquisition of the
Registrable Shares, that no Holder shall be entitled to sell any of such
Registrable Shares pursuant to the Shelf Registration Statement or to receive a
prospectus relating thereto, or to receive Liquidated Damages, if any, of the
type described in Section 5(b) in respect of the Registrable Shares
unless such Holder has furnished the Company with a Notice and Questionnaire as
required pursuant to Section 2(a) hereof (including the information
required to be included in such Notice and Questionnaire and under Item 507 of
Regulation S-K under the Securities Act). Each Notice Holder agrees promptly to
furnish to the Company all information required to be disclosed under Item 507
of Regulation S-K under the Securities Act and any other material information
regarding such Notice Holder and the distribution of such Registrable Shares as
the Company may from time to time reasonably request. Any sale of any
Registrable Shares by any Holder shall constitute a representation and warranty
by such Holder that the information relating to such Holder and its plan of
distribution is as set forth in the prospectus delivered by such Holder in
connection with such disposition, that such prospectus does not as of the time
of such sale contain any untrue statement of a material fact provided in
writing by such Holder and that such prospectus does not as of the time of such
sale omit to state any material fact relating to or provided in writing by such
Holder necessary to make the statements in such prospectus, in the light of the
circumstances under which they were made, not misleading.

 

4.                                       Registration Expenses.

 

(a)                                  All fees and expenses incident to the Company’s
performance of and compliance with this Agreement will be borne by the Company,
regardless of whether the Shelf Registration Statement or Requested
Underwritten Offering is ever filed or becomes effective, including without
limitation:

 

(i)                                     all registration and filing fees and
expenses;

 

(ii)                                  all fees and expenses of compliance with
federal securities and state “blue sky” or securities laws;

 

(iii)                               all expenses of printing (including without
limitation printing certificates and prospectuses), messenger and delivery
services and telephone;

 

(iv)                              all fees and disbursements of counsel for the
Company;

 

(v)                                 all application and filing fees in connection
with listing on a national securities exchange or automated quotation system
pursuant to the requirements hereof; and

 

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(vi)                              all fees and disbursements of independent
certified public accountants of the Company (including without limitation the
expenses of any special audit and comfort letters required by or incident to
such performance).

 

The
Company will bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or accounting
duties), the expenses of any annual audit and the fees and expenses of any
person, including special experts, retained by the Company.

 

(b)                                 In connection with the Shelf Registration
Statement, the Company will reimburse the Holders of Registrable Shares who are
selling or reselling Registrable Shares pursuant to the “Plan of Distribution”
contained in the Shelf Registration Statement for the reasonable fees and
disbursements of not more than one counsel, which shall be chosen by the
Holders of a majority in number of shares of the Registrable Shares for whose
benefit the Shelf Registration Statement is being prepared.

 

5.                                       Registration Defaults.

 

(a)                                  Each event described in any of the following
clauses (i) through (iv) is individually referred to herein as a “Registration
Default”:

 

(i)                                     if so required to be filed pursuant to Section 1(a),
the Shelf Registration Statement has not been filed on or prior to December 24,
2007, as such date may be extended pursuant to Section 2(h)(iii);

 

(ii)                                  if so required to be declared effective
pursuant to Section 1(a), the Shelf Registration Statement has not been
declared effective under the Securities Act on or prior to March 24, 2008,
as such date may be extended pursuant to Section 2(h)(iii);

 

(iii)                               the Shelf Registration Statement shall cease
to be effective during the Shelf Registration Period; or

 

(iv)                              (A) the aggregate duration of any
Deferral Period arising from an event described in Section 2(h)(iii) exceeds
60 days, (B) the aggregate duration of all Deferral Periods arising from
events described in Section 3(h)(iii) exceeds 90 days in any 12-month
period or (C) a Deferral Period arising from an event described in Section 3(h)(iii) is
invoked more than twice in any 12-month period.

 

(b)                                 Commencing on (and including) any date that a
Registration Default has begun and ending on (but excluding) the next date on
which there are no Registration Defaults that have occurred and are continuing
(a “Damages Accrual Period”), the Company shall pay, as liquidated
damages and not as a penalty, to Holders of record of Registrable Shares
included (or proposed to be included, if not filed or effective) in the Shelf
Registration Statement an amount (the “Liquidated Damages”) accruing,
for each day in the Damages Accrual Period, with respect to a Registration
Default applicable to the Shelf Registration Statement, in respect of any share
of Hybrid Preferred Stock, at a rate equal to 0.50% per annum of the
Liquidation Preference then in effect for the first

 

10

 

90-day
period from (and including) the date of such Registration Default, and
thereafter for each subsequent 90-day period at an additional rate of 0.25% of
the Liquidation Preference then in effect for each subsequent 90-day period
(the “Liquidated Damages Rate”). Liquidated Damages shall accrue from
and including the date of the applicable Registration Default to (but
excluding) the date on which all Registration Defaults have been cured; provided, that Liquidated Damages shall
not exceed a maximum rate of 2.00% per annum of the Liquidation Preference then
in effect (the “Maximum Rate”). Notwithstanding the foregoing, no
Liquidated Damages shall cumulate as to any Registrable Share from and after
the earlier of (x) the date such security is no longer a Registrable Share and
(y) expiration of the Shelf Registration Period.

 

(c)                                  The Liquidated Damages shall cumulate from
the first day of the applicable Damages Accrual Period, and shall be payable in
cash on each Damages Payment Date during the Damages Accrual Period to the
Holder of record of the Registrable Shares on the Record Date immediately
preceding the applicable Damages Payment Date (and on the Damages Payment Date
next succeeding the end of the Damages Accrual Period if the Damages Accrual
Period does not end on a Damages Payment Date) to the Holders of record of the
Registrable Shares as of the date that such Damages Accrual Period ends.

 

(d)                                 Subject to Section 6(e), the parties
agree that the sole monetary damages payable for any Registration Default shall
be the Liquidated Damages. The parties further agree that the Liquidated
Damages provided for in this Section 5 constitute a reasonable estimate of
the monetary damages that may be incurred by Holders of Registrable Shares
by reason of any Registration Default.

 

(e)                                  Notwithstanding anything contained in this
Agreement to the contrary, the Company acknowledges and affirms that in the
event of its breach of this Agreement, the Liquidated Damages may be
inadequate and the Holders may have no adequate remedy at law.
Accordingly, the Company agrees that the Holders shall have the right, in
addition to any other rights and remedies existing in its favor, to enforce
their rights and the obligations hereunder of the Company not only by an action
or actions for Liquidated Damages, but also by an action or actions for
specific performance, injunctive and/or other equitable relief.

 

6.                                       Indemnification.

 

(a)                                  The Company agrees to indemnify and hold
harmless each Holder of the Registrable Shares included within the coverage of
the Shelf Registration Statement, the directors, officers, employees,
Affiliates and agents of each such Holder and each person who controls any such
Holder within the meaning of the Securities Act or the Exchange Act
(collectively, the “Holder Indemnified Parties”) from and against any
losses, claims, damages or liabilities, joint or several, or any actions in
respect thereof (including, but not limited to, any losses, claims, damages,
liabilities or actions relating to purchases and sales of the Securities) to
which each Holder Indemnified Party may become subject under the
Securities Act, the Exchange Act or otherwise and shall reimburse, as incurred,
the Holder Indemnified Parties for any legal or other expenses reasonably
incurred by

 

11

 

them
in connection with investigating or defending any such loss, claim, damage,
liability or action in respect thereof; provided,
however, that the Company shall
not be liable in any such case to the extent that such loss, claim, damage or
liability arises out of or is based upon any untrue statement or omission made
in the Shelf Registration Statement, the Disclosure Package, any prospectus or
in any amendment thereof or supplement thereto in reliance upon and in
conformity with written information pertaining to such Holder and furnished to
the Company by or on behalf of such Holder Indemnified Party specifically for
inclusion therein; provided further,
however, that this indemnity
agreement will be in addition to any liability that the Company may otherwise
have to such Holder Indemnified Party. The Company shall also indemnify
underwriters (including, without limitation, any Holder Indemnified Party
deemed or alleged to be an underwriter or required under applicable securities
laws to be described in the applicable Shelf Registration Statement as an
underwriter), their officers and directors and each person who controls such
underwriters within the meaning of the Securities Act or the Exchange Act to
the same extent as provided above with respect to the indemnification of the
Holders of the Registrable Shares if requested by such Holders. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of any Holder
Indemnified Parties and shall survive the transfer of the Registrable Shares by
any Holder.

 

(b)                                 Each Holder of the Registrable Shares covered
by the Shelf Registration Statement severally and not jointly agrees to
indemnify and hold harmless the Company, each of its directors, each of its
officers who signs the Shelf Registration Statement and each person, if any,
who controls the Company within the meaning of the Securities Act or the
Exchange Act (a “Company Indemnified Party”) from and against any
losses, claims, damages or liabilities or any actions in respect thereof, to
which a Company Indemnified Party may become subject under the Securities
Act, the Exchange Act or otherwise, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in the Shelf
Registration Statement or in any amendment thereof, in each case at the time
such became effective under the Securities Act, or in any Disclosure Package,
prospectus or in any amendment thereof or supplement thereto, or (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in the case of the
Disclosure Package or any prospectus, in the light of the circumstances under
which they were made) not misleading, but in each case only to the extent that
the untrue statement or omission or alleged untrue statement or omission was
made in reliance upon and in conformity with written information pertaining to
such Holder and furnished to the Company by or on behalf of such Holder
specifically for inclusion therein; and, subject to the limitation set forth
immediately preceding this clause, shall reimburse, as incurred, the Company
Indemnified Parties for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any loss, claim, damage,
liability or action in respect thereof. This indemnity agreement will be in
addition to any liability that such Holder may otherwise have to the
Company Indemnified Parties. Notwithstanding any other provision of this Section 6(b),
no Holder shall be required to indemnify or hold harmless any Company
Indemnified Party in an amount in excess of the amount by which the net
proceeds received by such Holder from the sale of the Registrable Shares
pursuant to the Shelf

 

12

 

Registration
Statement exceeds the amount of damages that such Holder has otherwise been
required to pay by reason of such untrue statement or omission.

 

(c)                                  Promptly after receipt by a Holder
Indemnified Party or a Company Indemnified Party (each, an “Indemnified
Party”) of notice of the commencement of any action or proceeding
(including a governmental investigation), such Indemnified Party will, if a
claim in respect thereof is to be made against the indemnifying party under
this Section 6, notify the indemnifying party of the commencement thereof;
but the omission so to notify the indemnifying party (i) will not relieve
the indemnifying party from liability under paragraph (a) or (b) above
unless and to the extent it did not otherwise learn of such action and the
indemnifying party has been materially prejudiced by such failure and (ii) will
not, in any event, relieve the indemnifying party from any obligations to any
Indemnified Party other than the indemnification obligation provided in
paragraph (a) or (b) above. In case any such action is brought
against any Indemnified Party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Party (who shall not,
except with the consent of the Indemnified Party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such Indemnified
Party of its election so to assume the defense thereof the indemnifying party
will not be liable to such Indemnified Party under this Section 6 for any
legal or other expenses, other than reasonable costs of investigation,
subsequently incurred by such Indemnified Party in connection with the defense
thereof; provided, however, if such Indemnified Party shall
have been advised by counsel that there are one or more defenses available to
it that are in conflict with those available to the indemnifying party (in
which case the indemnifying party shall not have the right to direct the
defense of such action on behalf of the Indemnified Party), the reasonable fees
and expenses of such Indemnified Party’s counsel shall be borne by the
indemnifying party. In no event shall the indemnifying party be liable for the
fees and expenses of more than one counsel (together with appropriate local
counsel) at any time for any Indemnified Party in connection with any one
action or separate but substantially similar or related actions arising in the
same jurisdiction out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the Indemnified
Party (not to be unreasonably withheld or delayed), effect any settlement of
any pending or threatened action in respect of which any Indemnified Party is
or could have been a party and indemnity could have been sought hereunder by
such Indemnified Party unless such settlement (i) includes an
unconditional release of such Indemnified Party from all liability on any
claims that are the subject matter of such action, and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any Indemnified Party.

 

(d)                                 If the indemnification provided for in this Section 6
is unavailable or insufficient to hold harmless an Indemnified Party under
subsections (a) or (b) above, then each indemnifying party shall
contribute to the amount paid or payable by such Indemnified Party as a result of
the losses, claims, damages or liabilities (or actions in respect thereof)
referred to in subsection (a) or (b) above in such proportion as
is appropriate to reflect the relative fault of the indemnifying party or
parties on the one

 

13

 

hand
and the Indemnified Party on the other in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities (or
actions in respect thereof) as well as any other relevant equitable
considerations. The relative fault of the parties 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 on the one hand or
the Holder or Holder Indemnified Party, as the case may be, on the other,
and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid
by an Indemnified Party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this subsection (d) shall
be deemed to include any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or defending any action or
claim that is the subject of this subsection (d). The parties agree that
it would not be just and equitable if contribution were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
any other method of allocation that does not take account of the equitable
considerations referred to above. Notwithstanding any other provision of this Section 6(d),
no Holder shall be required to contribute any amount in excess of the amount by
which the net proceeds received by such Holder from the sale of the Registrable
Shares pursuant to the Shelf Registration Statement exceeds the amount of
damages that such Holder 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.

 

(e)                                  The agreements contained in this Section 6
shall survive the sale of the Registrable Shares pursuant to the Shelf
Registration Statement and shall remain in full force and effect, regardless of
any termination or cancellation of this Agreement or any investigation made by
or on behalf of any Indemnified Party.

 

7.                                       Information Requirements. The Company covenants that, if at any time
before the end of the Shelf Registration Period, the Company is not subject to
the reporting requirements of the Exchange Act, it will take such further
action as any Holder of Registrable Shares may reasonably request, all to
the extent required from time to time to enable such Holder to sell Registrable
Shares without registration under the Securities Act within the limitation of
the exemptions provided by Rules 144 and 144A (including the requirements
of Rule 144A(d)(4)) under the Securities Act. Upon the request of any
Holder of Registrable Shares, the Company shall deliver to such Holder a written
statement as to whether it has complied with such requirements.

 

8.                                       Underwritten Registrations.

 

(a)                                  Request for Underwritten Offering. Upon written request, a Holder or
Holders (the “Initiating Holders”) may sell all or a portion of its
Registrable Shares in an underwritten offering, subject to the terms of this Section 8.
From time to time, upon written request by the Initiating Holders, which
request shall specify the amount of the Initiating Holders’ Registrable Shares
to be sold (the “Requested Registrable Shares”),

 

14

 

the
Company shall use its best efforts to cause the sale of such Requested
Registrable Shares to be in the form of a firm commitment underwritten
public offering if the anticipated aggregate offering price (calculated based
upon the market price of the Registrable Shares on the date of such written
request) to the public equals or exceeds $150,000,000 (a “Requested
Underwritten Offering”) (including causing to be produced and filed any necessary
prospectuses or prospectus supplements with respect to such offering). The
managing underwriter or underwriters for a Requested Underwritten Offering
shall be an investment banking firm or firms of national reputation selected by
the Holders holding a majority of the Registrable Shares (the “Approved
Underwriters”); provided, however, that the Approved Underwriters
shall, in any case, also be reasonably acceptable to the Company.

 

(b)                                 Participation in Requested
Underwritten Offering. The
Company shall (i) as promptly as practicable but in no event later than
five (5) Business Days after the receipt of a request for a Requested
Underwritten Offering from any Initiating Holders, give written notice thereof
to all of the Holders (other than such Initiating Holders), which notice shall
specify the number of Requested Registrable Shares, the names and notice
information of the Initiating Holders and the intended disposition of such
Registrable Shares through an underwritten public offering and (ii) subject
to Section 8(c), include in the Requested Underwritten Offering all of the
Registrable Shares requested by such Holders for inclusion in such Requested
Underwritten Offering from whom the Company has received a written request for
inclusion therein within 20 days after the receipt by such Holders of such
written notice referred to in clause (i) above. Each such request by such
Holders shall specify the number of Registrable Shares proposed to be included
in the Requested Underwritten Offering and such Holder shall send a copy of
such written request to the Company and the Initiating Holders. The failure of
any Holder to respond within such 20 day period referred to in clause (ii) above
shall be deemed to be a waiver of such Holder’s rights under this Section 8
with respect to such Requested Underwritten Offering. Any Holder may waive
its rights under this Section 8 prior to the expiration of such 20-day
period by giving written notice to the Company, with a copy to the Initiating
Holders. Notwithstanding anything to the contrary herein, no equity securities
of the Company held by the Company or any person other than a Holder may be
included in such Requested Underwritten Offering without the prior written
consent of the Holders holding a majority of the Registrable Shares.

 

(c)                                  Limitation on Requested
Underwritten Offering. In
connection with any Requested Underwritten Offering, none of the Registrable
Shares held by any Holder (including the Initiating Holders) shall be included
in such Requested Underwritten Offering unless such Holder (i) agrees to
sell such Holder’s Registrable Shares on the basis reasonably provided in any
underwriting arrangements approved by the Holders holding a majority of the
Registrable Shares to be included in such Requested Underwritten Offering and (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements, and then only in such aggregate amount as, in the
opinion of the Approved Underwriters, can be sold in such offering within a
price range acceptable to the Holders holding a majority of the Registrable
Shares to be included in such Requested Underwritten Offering. If the Approved

 

15

 

Underwriters
advise the Company in writing that the aggregate amount of such Registrable
Shares requested to be included in such offering exceeds the amount which can
be sold in such offering within such acceptable price range, then the Approved
Underwriters shall include in such Requested Underwritten Offering only the
aggregate amount of Registrable Shares that the Approved Underwriters believe may be
sold within such acceptable price range consisting of, first, the Registrable
Shares of the Holders (including the Initiating Holders) participating in such
Requested Underwritten Offering, as a group; second, any equity
securities offered by the Company for its own account; and third, any
other equity securities requested to be in such Requested Underwritten
Offering, as a group, pro rata
within each group based on the amount of Registrable Shares or equity
securities, as applicable, owned by each such party.

 

(d)                                 Holder Lock-up Agreements. Each Holder (including the Initiating
Holders) agrees (i) not to effect any sale or transfer of any Registrable
Shares or any securities convertible into or exchangeable or exercisable for
such Registrable Shares and (ii) not to make any request for the
registration of the sale or transfer of any Registrable Shares or any
securities convertible into or exchangeable or exercisable for such Registrable
Shares, in each case, during the period beginning on the date such holder is
provided written notice of the Requested Underwritten Offering and ending on
the date that is 90 days after the date of the final prospectus relating to the
Requested Underwritten Offering, except as part of such Requested
Underwritten Offering. Upon request by the Approved Underwriters, each Holder
shall enter into customary lock-up agreements (“Lock-up Agreements”) on
terms consistent with the preceding sentence. No Holder subject to this Section 8(d) shall
be released from any obligation under any agreement, arrangement or
understanding entered into pursuant to this Section 8(d) unless all
other Holders subject to the same obligation are also released.

 

(e)                                  Company Lock-up Agreement. With respect to any Requested Underwritten
Offering, the Company shall not effect any sale or transfer of any Registrable
Shares or any securities convertible into or exchangeable or exercisable for
such Registrable Shares during the period beginning on the date it is provided
written notice of the Requested Underwritten Offering and ending on the date
that is 90 days after the date of the final prospectus relating to the
Requested Underwritten Offering, except as part of such Requested
Underwritten Offering or pursuant to a registration on Form S-4 or Form S-8
or any successor forms thereto; provided,
that in no event shall the Company be prohibited from effecting any sale or
transfer of Registrable Shares or any securities convertible into or
exchangeable or exercisable for Registrable Shares pursuant to this Section 8(e) more
than once in any 12-month period.

 

(f)                                    Additional Lock-up Agreements.
With respect to each
Requested Underwritten Offering, the Company shall use its best efforts to
cause all of its directors and officers who are not otherwise Holders to
execute lock-up agreements that contain restrictions that are no less restrictive
than the restrictions contained in the Lock-up Agreements.

 

16

 

9.                                       Miscellaneous.

 

(a)                                  Recapitalizations,
Exchanges, Etc. The
provisions of this Agreement shall apply to the full extent set forth herein with
respect to (i) the shares of Common Stock, (ii) any and all shares of
voting Common Stock of the Company into which the shares of Common Stock are
converted, exchanged or substituted in any recapitalization or other capital
reorganization by the Company and (iii) any and all equity securities of
the Company or any successor or assign of the Company (whether by merger,
consolidation, sale of assets or otherwise) which may be issued in respect
of, in conversion of, in exchange for or in substitution of, the shares of
Common Stock and shall be appropriately adjusted for any stock dividends,
splits, reverse splits, combinations, recapitalizations and the like occurring
after the date hereof. The Company shall cause any successor or assign (whether
by merger, consolidation, sale of assets or otherwise) to assume this Agreement
or enter into a new registration rights agreement with the Holders on terms
substantially the same as this Agreement as a condition of any such
transaction.

 

(b)                                 No Inconsistent Agreements. The Company will not on or after the date
of this Agreement enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company’s securities under any
agreement in effect on the date hereof.

 

(c)                                  Interpretation. Article, Section and Annex references
are to this Agreement, unless otherwise specified. All references to
instruments, documents, contracts, and agreements are references to such
instruments, documents, contracts and agreements as the same may be
amended, supplemented and otherwise modified from time to time, unless
otherwise specified. The word “including” shall mean “including, without
limitation.”

 

(d)                                 Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, except by the written consent
of the Company and the Holders of a majority in number of then outstanding
Registrable Shares; provided, however, that, notwithstanding the
foregoing, any amendment or modification of or supplement to this Agreement
which would materially and adversely affect any Purchaser in a manner that is
disproportionate to the other Purchasers will be binding upon and enforceable
against such Purchaser only with its prior written consent. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders whose
securities are being sold pursuant to the Shelf Registration Statement and that
does not directly or indirectly affect the rights of other Holders may be
given by Holders of at least a majority of the Registrable Shares being sold by
such Holders pursuant to the Shelf Registration Statement; provided, that the provisions of this sentence
may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence. Each Holder of
Registrable Shares outstanding at the time of any such amendment, modification,
supplement, waiver or consent or thereafter shall be bound by

 

17

 

any
such amendment, modification, supplement, waiver or consent effected pursuant
to this Section 9(d), whether or not any notice, writing or marking
indicating such amendment, modification, supplement, waiver or consent appears
on the Registrable Shares. Any amendment, supplement or modification of or to
any provision of this Agreement, any waiver of any provision of this Agreement,
and any consent to any departure from the terms of any provision of this
Agreement shall be effective only in the specific instance and for the specific
purpose for which made or given. No failure or delay on the part of any
party in exercising any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any right, power or remedy. The remedies provided for herein are cumulative
and are not exclusive of any remedies that may be available to a party at
law or in equity or otherwise. A copy of each amendment, modification or
supplement to this Agreement shall be delivered by the Company to each Holder.

 

(e)                                  Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing and shall be given
by registered or certified mail, return receipt requested, telecopy, air
courier guaranteeing overnight delivery or personal delivery to the following
addresses:

 

(i)                                     if to the Company, at its address as follows:

 

EXCO
Resources, Inc.

12377
Merit Drive, Suite 1700

Dallas,
Texas 75251

Attention:  General Counsel

Telephone:
(214) 368-2084

Facsimile:  (214) 706-3409

 

with
a copy to:

 

Vinson &
Elkins L.L.P.

2001
Ross Avenue, Suite 3700

Dallas,
Texas 75201

Attention:  Jeffrey A. Chapman

Telephone:
(214) 220-7797

Facsimile:  (214) 999-7797

 

(ii)                                  if to a Holder, at the most current address
shown for such Holder in the records of the Transfer Agent.

 

or
to such other address as the Company or such Holder may designate in
writing. All notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; upon actual
receipt if sent by certified mail, return receipt requested, or regular mail,
if mailed; when receipt acknowledged, if sent via facsimile; and upon actual
receipt when delivered to an air courier guaranteeing overnight delivery.

 

18

 

(f)                                    Successors and Assigns. This Agreement shall be binding upon the
Company, each Holder and their respective successors and permitted assigns.
Except as expressly provided in this Agreement, this Agreement shall not be
construed so as to confer any right or benefit upon any person or entity other
than the parties and their respective successors and permitted assigns. The
Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of each Holder. Any Holder may assign
its rights under this Agreement to any Person to whom such Holder transfers
Registrable Shares in compliance with the terms of the Purchase Agreement; provided, that no transferee shall be
entitled to have the Registrable Shares held by it included in a Shelf
Registration Statement unless such transferee agrees in writing to be bound by
this Agreement as if a party hereto and submits a Notice and Questionnaire.

 

(g)                                 Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which counterpart, when so executed and delivered, shall
be deemed to be an original and all of which counterparts, taken together,
shall constitute one and the same agreement.

 

(h)                                 Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

 

(i)                                     Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York  without regard to principles of conflicts of
laws.

 

(j)                                     Submission to Jurisdiction. The parties to this Agreement (i) irrevocably
submit to the exclusive jurisdiction of any state or federal courts located in
New York County, New York in connection with any disputes arising out of or
relating to this Agreement and (ii) waive any claim of improper venue or
any claim that those courts are an inconvenient forum. The parties to this
Agreement agree that mailing of process or other papers in connection with any
such action or proceeding in the manner provided in Section 9(e) or
in such other manner as may be permitted by applicable laws, shall be
valid and sufficient service thereof.

 

(k)                                  Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by virtue of any
applicable law, or due to any public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner so that the transaction contemplated hereby
are fulfilled to the extent possible.

 

(l)                                     Entire Agreement. This Agreement is intended by the parties
as a final expression of their agreement and is intended to be a complete and
exclusive statement of

 

19

 

the
agreement and understanding of the parties hereto in respect of the subject
matter contained herein, superseding all prior agreements and understandings
among the parties with respect to such subject matter.

 

(m)                               Further Assurances. Each of the parties shall execute such
documents and perform such further acts as may be reasonably required
or desirable to carry out or to perform the provisions of this Agreement.

 

(n)                                 Termination. This Agreement and the obligations of the
parties hereunder shall terminate upon the end of the Shelf Registration
Period, except for any liabilities or obligations under Section 3, 4 or 6
hereof and the obligations to make payments of and provide for Liquidated
Damages under Section 5 hereof to the extent such damages cumulate prior
to the end of the applicable Shelf Registration Period, each of which shall
remain in effect in accordance with its terms.

 

(o)                                 Securities Held by the
Company. Whenever the
consent or approval of Holders of a specified number of Registrable Shares is
required hereunder, shares of Hybrid Preferred Stock held by the Company or its
subsidiaries shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

 

(p)                                 Independent Nature of
Obligations. The obligations
of each Purchaser under this Agreement are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in
any way for the performance of the obligations of any other Purchaser under
this Agreement. The failure or waiver of performance under this Agreement by
any Purchaser shall not excuse performance by any other Purchaser. Each
Purchaser shall be entitled to independently protect and enforce its rights,
including without limitation, the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose.

 

(q)                                 Definitions. The following terms shall have the
following meanings:

 

“7.0% Preferred Stock” means the Series A-1 Preferred
Stock, Series A-2 Preferred Stock, Series B Preferred Stock and Series C
Preferred Stock.

 

“Affiliate” means with respect to any specified person, an “affiliate,”
as defined in Rule 144(a)(1) of the Securities Act, of such person.

 

“Business Day” means any day other than a Saturday, Sunday or
other day on which banking institutions are not required to be open in the
State of New York.

 

“Capital Stock” of any Person means any and all shares,
interests (including partnership interests), rights to purchase, warrants,
options, participations or other equivalents of or interests in (however
designated) equity of such Person, including any Preference Stock, but
excluding any debt securities convertible into such equity.

 

20

 

“Damages Payment Date” means each February 15, May 15,
August 15 and November 15.

 

“Disclosure Package” means, with respect to any offering of
securities, (i) the preliminary prospectus, (ii) each Free Writing
Prospectus and (iii) all other information, in each case, that is deemed,
under Rule 159 promulgated under the Securities Act, to have been conveyed
to purchasers of securities at the time of sale of such securities (including,
without limitation, a contract of sale).

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

 

“Free Writing Prospectus” means any “free writing prospectus” as
defined in Rule 405 promulgated under the Securities Act.

 

“Holder” means a holder of record of Registrable Shares.

 

“Hybrid Preferred Stock” means the Series A-1 Hybrid
Preferred Stock and Series A-2 Hybrid Preferred Stock.

 

“Liquidation Preference” has the meaning assigned to such term
in the applicable Statement of Designation.

 

“Notice and Questionnaire” means a written notice delivered to
the Company containing the information called for by the Form of Selling
Securityholder Notice and Questionnaire attached as Annex A hereto.

 

“Notice Holder” means, on any date, any Holder that has
delivered a Notice and Questionnaire to the Company on or prior to such date.

 

“NYSE Approval Date” means the date on which the NYSE
Shareholder Approval is obtained.

 

“NYSE Approval Proposal” means the proposal to approve (i) the
designations, preferences, limitations and relative rights set forth on Annex
III of the Statements of Designation of the Hybrid Preferred Stock, including
the convertibility of the Hybrid Preferred Stock into Common Stock, (ii) the
issuance of all of the shares of Common Stock issuable upon the conversion of
the Hybrid Preferred Stock and (ii) the removal of the restriction on
adjustments to the conversion price of the 7.0% Preferred Stock as set forth in
Section 10 of the Statements of Designation of the 7.0% Preferred Stock,
each in accordance with the rules of the NYSE or any other U.S. national
securities exchange on which the Common Stock is then listed.

 

“NYSE Shareholder Approval” means the requisite approval of the
NYSE Approval Proposal, as required by the NYSE or any other U.S. national
securities exchange on which the Common Stock is then listed, by the holders of
the Capital Stock of the Company entitled to vote.

 

21

 

“Person” means any individual, corporation, general partnership,
limited partnership, limited liability partnership, joint venture, association,
joint-stock company, trust, limited liability company, unincorporated
organization or government or any agency or political subdivision thereof.

 

“Preference Stock”, as applied to the Capital Stock of any
Person, means Capital Stock of any series, class or classes (however designated)
which is preferred as to the payment of dividends or distributions, or as to
the distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other series or
class of such Person.

 

“Record Date” has the meaning assigned to such term in the
applicable Statement of Designation.

 

“Registrable Shares” means each share of Hybrid Preferred Stock
until the earliest of (i) the date on which such share of Hybrid Preferred
Stock has been effectively registered under the Securities Act and disposed of
in accordance with such registration statement, (ii) the date on which
such share of Hybrid Preferred Stock is distributed to the public pursuant to Rule 144
under the Securities Act or is eligible for resale pursuant to Rule 144(k)
under the Securities Act and (iii) the NYSE Approval Date.

 

“Securities Act” means the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.

 

“Series A-1 Hybrid Preferred Stock” means the series of
preferred stock, par value $0.001 per share, of the Company designated as the “Series A-1
Hybrid Preferred Stock” having the rights and privileges set forth in the Series A-1
Hybrid Preferred Stock Statement of Designation.

 

“Series A-2 Hybrid Preferred Stock” means the series of
preferred stock, par value $0.001 per share, of the Company designated as the “Series A-2
Hybrid Preferred Stock” having the rights and privileges set forth in the Series A-2
Hybrid Preferred Stock Statement of Designation.

 

“Series A-1 Preferred Stock” means the series of
preferred stock, par value $0.001 per share, of the Company designated as the “Series A-1
7.0% Cumulative Convertible Perpetual Preferred Stock” having the rights and
privileges set forth in the Series A-1 7.0% Cumulative Convertible
Perpetual Preferred Stock Statement of Designation.

 

“Series A-2 Preferred Stock” means the series of
preferred stock, par value $0.001 per share, of the Company designated as the “Series A-2
7.0% Cumulative Convertible Perpetual Preferred Stock” having the rights and
privileges set forth in the Series A-2 7.0% Cumulative Convertible
Perpetual Preferred Stock Statement of Designation.

 

“Series B Preferred Stock” means the series of
preferred stock, par value $0.001 per share, of the Company designated as the “Series B
7.0% Cumulative Convertible Perpetual Preferred Stock” having the rights and
privileges set forth in the Series B 7.0% Cumulative Convertible Perpetual
Preferred Stock Statement of Designation.

 

22

 

“Series C Preferred Stock” means the series of
preferred stock, par value $0.001 per share, of the Company designated as the “Series C
7.0% Cumulative Convertible Perpetual Preferred Stock” having the rights and
privileges set forth in the Series C 7.0% Cumulative Convertible Perpetual
Preferred Stock Statement of Designation.

 

 “Statement of Designation”
means, as the case may be, either the Series A-1 Hybrid Preferred
Stock Statement of Designation or Series A-2 Hybrid Preferred Stock
Statement of Designation.

 

If
the foregoing is in accordance with your understanding of our agreement, please
sign and return to the Company a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement among
the Purchasers and the Company in accordance with its terms.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  EXCO RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Douglas
  Ramsey, Ph.D.

  	
   

  
	
   

  	
  Name:

  	
  J. Douglas Ramsey, Ph.D.

  
	
   

  	
  Title:

  	
  Vice President and Chief
  Financial Officer

  

 

23

 

The foregoing
Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written.

 

SCHEDULE OF PURCHASERS

 

OCM PRINCIPAL OPPORTUNITIES
FUND IV, L.P.

OCM EXCO HOLDINGS, LLC

ARES CORPORATE OPPORTUNITIES
FUND, L.P.

ACOF EXCO, L.P.

ACOF EXCO 892 INVESTORS, L.P.

ARES CORPORATE OPPORTUNITIES
FUND II, L.P

ARES EXCO, L.P.

ARES EXCO 892 INVESTORS, L.P.

GREENHILL CAPITAL PARTNERS II,
L.P.

GREENHILL CAPITAL PARTNERS
(CAYMAN) II, L.P.

GREENHILL CAPITAL PARTNERS
(EXECUTIVES) II, LP.

GREENHILL CAPITAL PARTNERS
(EMPLOYEES) II, LP.

FARALLON CAPITAL PARTNERS, L.P.

FARALLON CAPITAL INSTITUTIONAL
PARTNERS, L.P.

FARALLON CAPITAL INSTITUTIONAL
PARTNERS II. L.P.

FARALLON CAPITAL INSTITUTIONAL
PARTNERS III, L.P.

TINICUM PARTNERS, L.P.

FIDELITY ADVISOR SERIES II:
FIDELITY ADVISOR HIGH INCOME ADVANTAGE

PENSION INVESTMENT COMMITTEE OF
GENERAL MOTORS FOR GENERAL MOTORS EMPLOYEES DOMESTIC GROUP PENSION TRUST

FIDELITY ADVISOR SERIES I:  FIDELITY ADVISOR LEVERAGED COMPANY STOCK FUND

FIDELITY SECURITIES FUND:  FIDELITY LEVERAGED COMPANY STOCK FUND

FIDELITY FINANCIAL TRUST:  FIDELITY CONVERTIBLE SECURITIES FUND

CREDIT SUISSE SECURITIES (USA)
LLC

BEAR, STEARNS & CO. INC.

LB I GROUP INC.

THIRD POINT PARTNERS LP

THIRD POINT PARTNERS QUALIFIED
LP

THIRD POINT OFFSHORE FUND, LTD.

THIRD POINT ULTRA LTD.

OHSF FINANCING, LTD.

OHSF FINANCING II, LTD.

OAK HILL CREDIT OPPORTUNITIES
FINANCING, LTD.

OAK HILL CREDIT ALPHA FINANCE
I, L.P.

OAK HILL CREDIT ALPHA FINANCE I
(OFFSHORE), LTD.

LERNER ENTERPRISES, L.P.

AMERICAN GENERAL LIFE INSURANCE
COMPANY

AMERICAN INTERNATIONAL LIFE
ASSURANCE COMPANY OF NEW YORK

AIG LIFE INSURANCE COMPANY

THE UNITED STATES LIFE
INSURANCE COMPANY IN THE CITY OF NEW YORK

THE VARIABLE ANNUITY LIFE
INSURANCE COMPANY

AMERICAN INTERNATIONAL GROUP,
INC. RETIREMENT PLAN

SUNAMERICA INCOME FUNDS
–SUNAMERICA STRATEGIC BOND FUND

SEASON SERIES TRUST – STRATEGIC
FIXED INCOME PORTFOLIO

SUNAMERICA INCOME FUNDS
–SUNAMERICA HIGH YIELD BOND FUND

VALIC COMPANY II – STRATEGIC
BOND FUND

 

SIGNATURE PAGE

REGISTRATION RIGHTS AGREEMENT

(HYBRID PREFERRED)

 

 

VALIC COMPANY II – HIGH YIELD
BOND FUND

SUNAMERICA SERIES TRUST – HIGH
YIELD BOND PORTFOLIO

CYRUS OPPORTUNITIES MASTER FUND
II, LTD.

CYRUS SHORT CREDIT MASTER FUND,
LTD.

CRS FUND, LTD.

KINGS ROAD INVESTMENT LTD.

STRATEGIC CO-INVESTMENT
PARTNERS, L.P.

PARTNERS GROUP ACCESS 12, L.P.

STOCKWELL FUND, L.P.

AIG ANNUITY INSURANCE COMPANY

MERIT LIFE INSURANCE CO.

AIG LIFE INSURANCE COMPANY

AMERICAN INTERNATIONAL LIFE
ASSURANCE COMPANY OF NEW YORK

AMERICAN GENERAL ASSURANCE
COMPANY

AMERICAN GENERAL LIFE INSURANCE
COMPANY

BARCLAYS BANK PLC

SILVER POINT CAPITAL OFFSHORE
FUND, LTD

SILVER POINT CAPITAL  FUND, L.P.

SPCP GROUP III, LLC

APOLLO INVESTMENT CORPORATION

BLACKROCK GLOBAL SERIES HIGH
YIELD BOND FUND

BLACKROCK FUNDS – HIGH YIELD BOND
PORTFOLIO

MET INVESTORS ADVISORY L.L.C.

BLACKROCK HIGH INCOME FUND OF
BLACKROCK BOND FUND, INC.

BLACKROCK HIGH INCOME PORTFOLIO

BLACKROCK HIGH INCOME V.I. FUND

MLIIF US DOLLAR HIGH YIELD BOND
FUND

MANAGED ACCOUNT SERIES; HIGH
INCOME PORTFOLIO

MULTI-STRATEGY FIXED INCOME
ALPHA MASTER SERIES TRUST

MAGNETITE ASSET INVESTORS III,
L.L.C.

THE GALAXITE MASTER UNIT TRUST

BLACKROCK FINANCIAL MANAGEMENT,

                SOLELY IN ITS CAPACITY AS 

                INVESTMENT ADVISOR OF THE

                OBSIDIAN MASTER FUND, A SUB-TRUST

                OF THE OBSIDIAN MASTER SERIES TRUST

BLACKROCK CORPORATE HIGH YIELD
FUND, INC.

BLACKROCK CORPORATE HIGH YIELD
FUND III, INC.

BLACKROCK CORPORATE HIGH YIELD
FUND V, INC.

BLACKROCK CORPORATE HIGH YIELD
FUND VI, INC.

MERRILL LYNCH GLOBAL INVESTMENT
SERIES: INCOME STRATEGIES PORTFOLIO

BLACKROCK DEBT STRATEGIES FUND,
INC.

BLACKROCK DIVERSIFIED INCOME
STRATEGIES FUND, INC.

 

SIGNATURE PAGE

REGISTRATION RIGHTS AGREEMENT

(HYBRID PREFERRED)

 

 

ANNEX A

Notice
& Questionnaire

 

 

Completed questionnaires should be returned
as follows:

 

Copy by facsimile to EXCO Resources, Inc.,
Attn:  General Counsel

Fax: 
(214) 706-3409

 

With the original copy in the enclosed self
addressed envelope to follow to:

EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, TX 75251

Attention: 
General Counsel

 

The
undersigned hereby provides the following information to EXCO Resources, Inc. (“EXCO”)
and represents and warrants that such information is accurate and complete:

 

1.                                       Your
Identity and Background - as the Beneficial Holder of Series A-1 Hybrid
Preferred Stock or Series A-2 Hybrid Preferred Stock (collectively, the “Securities”).

 

(a)                                  Your
full legal name:

 

(b)                                 Your
business address (including street address) (or residence if no business
address), telephone number and facsimile number:

 

Address:

 

	
   

  
	
   

  

 

	
  Telephone No.:

  	
   

  
	
  Fax No.:

  	
   

  
			

 

(c)                                  Are
you a broker-dealer registered pursuant to Section 15 of the Exchange Act?

 

o Yes.

o No.

 

(d)                                 If
your response to Item 1(c) above is no, are you an “affiliate” of a
broker-dealer registered pursuant to Section 15 of the Exchange Act?

 

o Yes.

o No.

 

For the
purposes of this Item 1(d), an “affiliate” of a registered broker-dealer shall
include any company that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,

 

A-1

 

such
broker-dealer, but does not include any individuals employed by such
broker-dealer or its affiliates.

 

(e)                                  If
your response to 1(d) above is yes, please name the broker-dealer(s) with whom
you are affiliated.

 

	
   

  
	
   

  

 

(f)                                    Full
legal name of person through which you hold the Securities (i.e. name of your
broker or the DTC participant, if applicable, through which your Securities are
held):

 

	
  Name of broker:

  	
   

  
	
  DTC No.:

  	
   

  
	
  Contact person:

  	
   

  
	
  Telephone No.:

  	
   

  
				

 

2.                                       Your
Relationship with EXCO.

 

(a)                                  Have
you or any of your affiliates, officers, directors or principal equity holders
(owners of 5% or more of your equity securities) held any position or office or
have you had any other material relationship with EXCO (or its predecessors or
affiliates) within the past three years?

 

o Yes.

o No.

 

(b)                                 If
your response to item 2(a) above is yes, please state the nature and duration
of your relationship with EXCO:

 

	
   

  

 

3.                                       Your
Interest in the Securities.

 

(a)                                  Check
any of the following that applies to you:

 

o                                    I
own Series A-1 Hybrid Preferred Stock:

 

Number of
shares of Series A-1 Hybrid Preferred Stock beneficially owned:

 

	
   

  

 

o                                    I
own Series A-2 Hybrid Preferred Stock:

 

Number of
shares of Series A-2 Hybrid Preferred Stock beneficially owned:

 

	
   

  

 

A-2

 

(b)                                 Other
than as set forth in your response to Item 3(a) above, do you beneficially own
any other securities of EXCO?

 

o Yes.

o No.

 

(c)                                  If
your answer to item 3(b) above is yes, state the type, the aggregate amount
and, if other than Common Stock, the CUSIP No(s). of such other securities of
EXCO beneficially owned by you:

 

	
  Type:

  	
   

  
	
  Aggregate amount:

  	
   

  
	
  CUSIP No(s).

  	
   

  
				

 

(d)                                 Did
you acquire the securities listed in Item 3(a) above in the ordinary course of
business?

 

o Yes.

o No.

 

(e)                                  At
the time of your purchase of the securities listed in Item 3(a) above, did you
have any agreements or understandings, directly or indirectly, with any person
to distribute the securities?

 

o Yes.

o No.

 

(f)                                    If
your response to Item 3(e) above is yes, please describe such agreements or
understandings.

 

	
   

  
	
   

  

 

4.                                       Nature
of Your Ownership.

 

(a)                                  (i)                                     If
the name of the beneficial holder of the Securities set forth in your response
to Item 1(a) above is that of a limited partnership, state the names, business
addresses (including street address) (or residence address, if no business
address), telephone numbers and facsimile numbers of the general partners of
such limited partnership:

 

	
  Full Legal Name

  	
   

  	
  Business or

   Residence Address

  	
   

  	
  Telephone and 

  Facsimile Numbers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-3

 

 

(ii)                                  With
respect to each general partner listed in Item 4(a)(i) above who is not a
natural person, and is not publicly held, name each shareholder (or other
interest holder) of such general partner, or if administered by a portfolio
manager, name the portfolio manager (except where the portfolio manager has
been named). If any of these named shareholders or other interest holders are
not natural persons or publicly held entities, please provide the same
information. This process should be repeated until you reach natural persons or
a publicly held entity (except where the portfolio manager has been named).

 

	
  Full Legal Name

  	
   

  	
  Business or 

  Residence Address

  	
   

  	
  Telephone and 

  Facsimile Numbers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(b)                                 (i)                                     If
the name of the beneficial holder of the Securities set forth in your response
to Item 1(a) above is that of a limited liability company, state the names,
business addresses (including street address) (or residence address, if no
business address), telephone numbers and facsimile numbers of the managing members
of such limited liability company.

 

	
  Full Legal Name

  	
   

  	
  Business or 

  Residence Address

  	
   

  	
  Telephone and 

  Facsimile Numbers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(ii)                                  With
respect to each managing member listed in Item 4(b)(i) above who is not a
natural person, and is not publicly held, name each shareholder (or other
interest holder) of such managing member, or if administered by a portfolio
manager, name the portfolio manager. If any of these named shareholders or
other interest holders are not natural persons or publicly held entities,
please provide the same information (except where the portfolio manager has
been named). This process should be repeated until 

 

A-4

 

you reach
natural persons or a publicly held entity (except where the portfolio manager
has been named).

 

	
  Full Legal Name

  	
   

  	
  Business or

   Residence Address

  	
   

  	
  Telephone and 

  Facsimile Numbers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(c)                                  (i)                                     If
the name of the beneficial holder of the Securities set forth in your response
to Item l(a) above is that of a corporation that is not publicly held, state
the names, business addresses (including street address) (or residence address,
if no business address), telephone numbers and facsimile numbers of the
controlling shareholders (the “Controlling Persons”).

 

	
  Full Legal Name

  	
   

  	
  Business or 

  Residence Address

  	
   

  	
  Telephone and 

  Facsimile Numbers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(ii)                                  If
any Controlling Person is not a natural person and is not a publicly held
entity, name each controlling shareholder or other interest holder of such
Controlling Person. If any of these named shareholders or other interest
holders are not natural persons or publicly held entities, please provide the
same information. This process should be repeated until you reach natural
persons or a publicly held entity.

 

	
  Full Legal Name

  	
   

  	
  Business or 

  Residence Address

  	
   

  	
  Telephone and 

  Facsimile Numbers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(d)                                 If
the beneficial holder of the Securities set forth in response to Item 1(a) is
an investment or hedge fund, name the individual or individuals who have or
share 

 

A-5

 

voting or
investment power over the Securities and describe their relationship with the
beneficial owner.

 

	
   

  
	
   

  
	
   

  

 

(e)                                  If
the beneficial holder of the Securities set forth in response to Item 1(a) is
trust, name the trustee and describe its relationship with the beneficial
owner.

 

	
   

  
	
   

  
	
   

  

 

If
you need more space for this response, please attach additional sheets of
paper. Please be sure to indicate your name and the number of the item being
responded to on each such additional sheet of paper, and to sign each such
additional sheet of paper before attaching it to this Questionnaire. Please
note that you may be asked to answer additional questions depending on your
responses to the following questions.

 

The
undersigned acknowledges its obligation to comply with the provisions of the
Exchange Act and the rules thereunder relating to stock manipulation,
particularly Regulation M thereunder (or any successor rules or regulations),
in connection with any offering of Securities pursuant to the Registration
Rights Agreement. The undersigned agrees that neither it nor any person acting
on its behalf will engage in any transaction in violation of such provisions.

 

The
undersigned hereby acknowledges its obligations under certain circumstances
under the Registration Rights Agreement to indemnify and hold harmless certain
persons as set forth therein. Pursuant to the Registration Rights Agreement,
EXCO has agreed under certain circumstances to indemnify the undersigned
against certain liabilities.

 

In accordance
with the undersigned’s obligation under the Registration Rights Agreement to
provide such information as may be required by law (including interpretations
of the staff of the Commission with which EXCO is required to comply) for
inclusion in the Shelf Registration Statement, the undersigned agrees to
promptly notify EXCO of any inaccuracies or changes in the information provided
herein that may occur subsequent to the date hereof at any time while the Shelf
Registration Statement remains effective. In
particular, the undersigned agrees to promptly notify EXCO  if it sells or
otherwise transfers any of the Securities other than pursuant to the Shelf
Registration Statement.

 

A-6

 

All notices to
the beneficial owner hereunder and pursuant to the Registration Rights
Agreement shall be made in writing to the undersigned at the address set forth
in Item 1(b) of this Notice and Questionnaire.

 

By signing
below, the undersigned acknowledges that it is the beneficial owner of the
Securities set forth herein, represents that the information provided herein is
accurate, consents to the disclosure of the information contained in this
Notice and Questionnaire and the inclusion of such information in the Shelf
Registration Statement and the related prospectus. The undersigned understands
that such information will be relied upon by EXCO in connection with the
preparation or amendment of the Shelf Registration Statement and the related
prospectus.

 

Once this
Notice and Questionnaire is executed by the undersigned beneficial owner and
received by EXCO, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives and assigns of EXCO and the undersigned
beneficial owner. This Agreement shall be governed in all respects by the laws
of the State of New York.

 

IN WITNESS
WHEREOF the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

 

	
   

  	
  Name of
  Beneficial Owner:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Please Print)

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
					

 

A-7

 

ANNEX B

Plan of
Distribution

 

The Company is
registering the shares of Hybrid Preferred Stock to permit the resale of the shares
of Hybrid Preferred Stock by its Holders from time to time according to the
terms of the Registration Rights Agreement, dated March 28, 2007, among the
Company and the purchasers signatory thereto (the “Agreement”). The
Company will not receive any of the proceeds from the sale by the selling
Holders of the shares of Hybrid Preferred Stock. The Company will bear all fees
and expenses incident to its obligation to register the shares of Hybrid Preferred
Stock.

 

The Holders
may sell all or a portion of the shares of Hybrid Preferred Stock beneficially
owned by them and offered hereby from time to time directly or through one or
more underwriters, broker-dealers or agents. If the shares of Hybrid Preferred
Stock are sold through underwriters or broker-dealers, the selling Holders will
be responsible for underwriting discounts or commissions or agent’s
commissions. The shares of Hybrid Preferred Stock may be sold in one or more
transactions at fixed prices, at prevailing market prices at the time of the
sale, at varying prices determined at the time of sale, or at negotiated
prices. These sales may be effected in transactions, which may involve:

 

•                                          crosses
or block transactions

 

•                                          on
any national securities exchange or quotation service on which the securities
may be listed or quoted at the time of sale;

 

•                                          in
the over-the-counter market;

 

•                                          in
transactions otherwise than on these exchanges or systems or in the
over-the-counter market;

 

•                                          through
the writing of options, whether such options are listed on an options exchange
or otherwise;

 

•                                          ordinary
brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

 

•                                          block
trades in which the broker-dealer will attempt to sell the shares as agent but
may position and resell a portion of the block as principal to facilitate the
transaction;

 

•                                          purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;

 

•                                          an
exchange distribution in accordance with the rules of the applicable exchange;

 

•                                          privately
negotiated transactions;

 

•                                          short
sales;

 

B-1

 

•                                          sales
pursuant to Rule 144;

 

•                                          broker-dealers
may agree with the selling securityholders to sell a specified number of such
shares at a stipulated price per share;

 

•                                          a
combination of any such methods of sale; and

 

•                                          any
other method permitted pursuant to applicable law.

 

If the selling
Holders effect such transactions by selling shares of Hybrid Preferred Stock to
or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts,
concessions or commissions from the selling Holders or commissions from
purchasers of the shares of Hybrid Preferred Stock for whom they may act as
agent or to whom they may sell as principal (which discounts, concessions or
commissions as to particular underwriters, broker-dealers or agents may be in
excess of those customary in the types of transactions involved). In connection
with sales of the shares of Hybrid Preferred Stock or otherwise and if then
permitted by the Preferred Stock Purchase Agreement, dated March 28, 2007,
among the Company and the purchasers signatory thereto, the selling Holders may
enter into hedging transactions with broker-dealers, which may in turn engage
in short sales of the shares of Hybrid Preferred Stock in the course of hedging
in positions they assume. The selling Holders may also sell shares of Hybrid Preferred
Stock short and deliver shares of Hybrid Preferred Stock covered by a
prospectus to close out short positions and to return borrowed shares in
connection with such short sales. The selling Holders may also loan or pledge shares
of Hybrid Preferred Stock to broker-dealers that in turn may sell such shares.

 

The selling
Holders may pledge or grant a security interest in some or all of the shares of
Hybrid Preferred Stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell
the shares of Hybrid Preferred Stock from time to time pursuant to a prospectus
or any amendment to such prospectus under Rule 424(b)(3) or other applicable
provision of the Securities Act, amending, if necessary, the list of selling
Holders to include the pledgee, transferee or other successors in interest as
selling Holders under such prospectus. The selling Holders also may transfer
and donate the shares of Hybrid Preferred Stock in other circumstances in which
case the transferees, donees, pledgees or other successors in interest will be
the selling beneficial owners for purposes of such prospectus.

 

The selling
Holders and any broker-dealer participating in the distribution of the shares
of Hybrid Preferred Stock may be deemed to be “underwriters” within the meaning
of the Securities Act, and any commission paid, or any discounts or concessions
allowed to, any such broker-dealer may be deemed to be underwriting commissions
or discounts under the Securities Act. At the time a particular offering of the
shares of Hybrid Preferred Stock is made, a prospectus, if required, will be
distributed which will set forth the aggregate amount of shares of Hybrid Preferred
Stock being offered and the terms of the offering, including the name or names
of any broker-dealers or agents, any discounts, commissions and other terms constituting
compensation from the selling Holders and any discounts, commissions or
concessions allowed or reallowed or paid to broker-dealers.

 

B-2

 

Under the
securities laws of some states, the shares of Hybrid Preferred Stock may be
sold in such states only through registered or licensed brokers or dealers. In
addition, in some states the shares of Hybrid Preferred Stock may not be sold
unless such shares have been registered or qualified for sale in such state or
an exemption from registration or qualification is available and is complied
with.

 

There can be
no assurance that any selling Holder will sell any or all of the shares of Hybrid
Preferred Stock registered pursuant to the Shelf Registration Statement.

 

The selling
Holders and any other person participating in such distribution will be subject
to applicable provisions of the Exchange Act, including, without limitation,
Regulation M of the Exchange Act, which may limit the timing of purchases and
sales of any of the shares of Hybrid Preferred Stock by the selling Holders and
any other participating person. Regulation M may also restrict the ability of
any person engaged in the distribution of the shares of Common Stock to engage
in market-making activities with respect to the shares of Hybrid Preferred
Stock. All of the foregoing may affect the marketability of the shares of Hybrid
Preferred Stock and the ability of any person or entity to engage in
market-making activities with respect to the shares of Hybrid Preferred Stock.

 

The Company
will pay all expenses of the registration of the shares of Hybrid Preferred
Stock pursuant to the Agreement, including, without limitation, Commission
filing fees and expenses of compliance with state securities or “blue sky”
laws; provided, however, that a selling Holder will pay all underwriting
discounts and selling commissions, if any. The Company will indemnify the
selling Holders against liabilities, including some liabilities under the
Securities Act, in accordance with the Agreement, or the selling Holders will
be entitled to contribution. The Company may be indemnified by the selling
Holders against civil liabilities, including liabilities under the Securities
Act, that may arise from any written information furnished to the Company by
the selling Holder specifically for use in a prospectus, in accordance with
Agreement, or the Company may be entitled to contribution.

 

Once sold
under the registration statement, the shares of Hybrid Preferred Stock will be
freely tradable in the hands of persons other than the Company’s affiliates.

 

B-3Exhibit 10.1

 

EXECUTION COPY

 

FIRST AMENDMENT TO

PURCHASE AND SALE AGREEMENT

AND

ASSIGNMENT OF PARTIAL INTEREST IN
THE

PURCHASE AND SALE AGREEMENT

 

THIS FIRST AMENDMENT TO PURCHASE AND SALE
AGREEMENT AND ASSIGNMENT OF PARTIAL INTEREST IN THE PURCHASE AND SALE AGREEMENT
(this “Amendment”), effective as of 10:00 a.m.,
Dallas, Texas time, on March 30, 2007, is entered into by and among
Anadarko Petroleum Corporation, a Delaware corporation (“APC”), Anadarko
Gathering Company, a Delaware corporation (“AGC”; APC and AGC collectively
called “Seller”), EXCO Partners Operating Partnership, LP, a Delaware limited
partnership and the successor by merger to Vernon Holdings, LLC (“EPOP”), and
Vernon Gathering, LLC, a Delaware limited liability company and wholly owned subsidiary
of EPOP (“Vernon Gathering”). Each capitalized term used herein and not
otherwise defined herein shall have the meaning ascribed to it in the Purchase
Agreement referred to below.

 

RECITALS

 

WHEREAS,
Seller and Vernon Holdings, LLC, a Delaware limited liability company (“Vernon
Holdings”), entered into that certain Purchase and Sale Agreement (the “Purchase
Agreement”), dated December 22, 2006, whereby Seller agreed to sell, and Vernon
Holdings, among other things, agreed to purchase, accept and pay for the Assets
and to assume the Assumed Seller Obligations;

 

WHEREAS, on
March 30, 2007, Vernon Holdings became a wholly-owned subsidiary of EPOP;

 

WHEREAS, effective
as of 10:00 a.m., Dallas, Texas time, on the date hereof, Vernon Holdings
merged with and into EPOP, with EPOP surviving the merger as the successor to
Vernon Holdings;

 

WHEREAS, effective as of 10:00 a.m., Dallas, Texas time, on the date
hereof, Seller and EPOP (as successor by merger to Vernon Holdings) desire to
amend the Purchase Agreement, among other things, (i) to permit the assignment
by EPOP to Vernon Gathering of EPOP’s rights and obligations under the Purchase
Agreement insofar as they relate to the AGC Assets (as defined in Section 1.8
hereof) and the Assumed AGC Obligations (as defined in Section 1.8 hereof) (the
“Vernon Assignment”), (ii) to amend the Sections of the Purchase Agreement
specified herein, (iii) to amend and restate Exhibits A, A-1 and B and
Schedules 1.2(d) (parts 2 of 3 and 3 of 3) and 5.13 (part 3 of 4) to the Purchase
Agreement, and (iv) to amend Schedule 5.7(a) to the Purchase Agreement; and

 

WHEREAS, EPOP desires to make the Vernon Assignment as provided in
Article II hereof.

 

1

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual promises,
covenants, conditions and agreements herein and in the Purchase Agreement, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound by
the terms hereof, agree as follows:

 

ARTICLE I

AMENDMENTS

 

Section 1.1                                      Acknowledgments
and Agreements.

 

(a)                                  EPOP hereby advises Seller that
Vernon Holdings has merged with and into EPOP, with EPOP surviving the merger.
Seller and EPOP acknowledge and agree that from and after the effective time of
the merger EPOP, as the successor by merger to Vernon Holdings, shall be deemed
for all purposes under the Purchase Agreement, as amended hereby, to be “Purchaser”
thereunder and hereunder, and the Purchase Agreement, pursuant to Section 12.10
thereof, shall be binding upon and inure to the benefit of EPOP as the
successor to Vernon Holdings.

 

(b)                                 Seller, EPOP and Vernon
Gathering agree that from and after the effective time of this Amendment, all
references to “Purchaser” in the Purchase Agreement, as amended hereby, shall
refer to Vernon Gathering insofar as, and only to the extent that, the use of
such term in the Purchase Agreement, as amended hereby, relates to the rights
and obligations of Purchaser in respect of the AGC Assets and the Assumed AGC
Obligations.

 

(c)                                  Seller, EPOP and Vernon
Gathering agree that, notwithstanding Section 12.19 of the Purchase Agreement,
EPOP and Vernon Gathering shall be deemed to be express signatories and parties
to the Purchase Agreement, as amended hereby.

 

(d)                                 EPOP and Vernon Gathering
acknowledge and agree that they have no objection to the timing of the delivery
by Seller of the Material Contracts delivered by Seller to Purchaser pursuant
to Section 7.17 of the Purchase Agreement and no adjustment to the Purchase
Price shall be required pursuant to Section 7.16 of the Purchase Agreement.

 

Section 1.2                                      Amendment to
the Definitions Section of the Purchase Agreement.

 

The
Definitions section of the Purchase Agreement is hereby amended by adding the
following defined terms thereto:

 

“AGC Assets” has the meaning set forth in
Section 12.10.

 

“Assumed AGC Obligations” has the meaning set
forth in Section 12.10.

 

“EPOP” means EXCO Partners Operating
Partnership, LP, a Delaware limited partnership.

 

“Mineral Interests” has the meaning set forth
in Section 1.2(a).

 

2

 

“Vernon Gathering” means Vernon Gathering,
LLC, a Delaware limited liability company and wholly-owned subsidiary of EPOP.

 

Section 1.3                                      Amendment to
Section 1.2(a) of the Purchase Agreement. Section 1.2(a) of the Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

 

(a)                                  All of (i) the oil and gas
leases; subleases and other leaseholds; carried interests; farmout rights;
options; and other properties and interests described on Exhibit A attached hereto, subject to
such depth limitations and other restrictions as may be set forth on Exhibit A (collectively, the “Leases”)
and (ii) fee mineral interests, fee royalty interests and other fee interests
in oil, gas and other minerals described on Exhibit
A (collectively, the “Mineral Interests”), (in each case) together
with each and every kind and character of right, title, claim, and interest
that Seller has in and to the lands covered by the Leases and Mineral Interests
and the interests currently pooled, unitized, communitized or consolidated
therewith (the “Lands”);

 

Section 1.4                                      Amendment to
Section 1.2(c) of the Purchase Agreement. Section 1.2(c) of the Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

 

(c)                                  All interests of Seller in or to
any currently existing pools or units which include any Lands or all or a part
of any Leases or Mineral Interests or include any Wells, including those pools
or units shown on Exhibit A-1 (the
“Units”; the Units, together with the Leases, Mineral Interests, Lands and
Wells, being hereinafter referred to as the “Properties”), and including all
interests of Seller in production of Hydrocarbons from any such Unit, whether
such Unit production of Hydrocarbons comes from Wells located on or off of a
Lease or Mineral Interest, and all tenements, hereditaments and appurtenances
belonging to the Leases, the Mineral Interests and Units;

 

Section 1.5                                      Amendment to
Section 1.2(h) of the Purchase Agreement. Section 1.2(h) of the Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

 

(h)                                 All Hydrocarbons produced from
or attributable to the Leases, Mineral Interests, Lands, and Wells from and
after the Effective Time, together with Imbalances associated with the
Properties;

 

Section 1.6                                      Amendment to
Section 6.1 of the Purchase Agreement. All references to “limited liability
company” in Section 6.1 of the Purchase Agreement are hereby replaced with “limited
liability company or limited partnership, as applicable,”.

 

Section 1.7                                      Amendment to
Section 9.2(f) of the Purchase Agreement. Section 9.2(f) of the Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

 

(f)                                    written evidence reasonably
acceptable to Purchaser of the termination of that certain Gas Gathering
Agreement, dated November 1, 2006, by and between APC and AGC, with such
termination effective as of the Closing Date.

 

Section 1.8                                      Amendment to
Section 12.10 of the Purchase Agreement. Section 12.10 of the Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

 

3

 

Section 1.9                                      No party shall
assign all or any part of this Agreement, nor shall any party assign or
delegate any of its rights or duties hereunder, without the prior written
consent of the other party; provided, that Purchaser may, without the consent
of Seller, assign its rights and obligations under the Purchase Agreement to
Vernon Gathering insofar as, and solely to the extent that, such rights and
obligations relate to (A) AGC’s right, title, interest and estate in and to the
Assets which are to be described and covered by the Conveyance attached hereto
as Exhibit B-2 (the “AGC Assets”),
including the right to receive the AGC Assets at the Closing,  and (B) the Assumed Seller Obligations that
are obligations or liabilities with respect to the AGC Assets (the “Assumed AGC
Obligations”), but no such assignment shall relieve EPOP, as successor by
merger to Vernon Holdings, of its obligations hereunder or relieve the
guarantor of its obligations under the Guaranty Agreement. This Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

Section 1.10                                Replacement
of Exhibit B to the Purchase Agreement. Exhibit B to the Purchase Agreement
is hereby replaced in its entirety with Exhibits B-1 and B-2 attached hereto,
all references to “Exhibit B” in
the Purchase Agreement are hereby replaced with “Exhibits B-1
and B-2” and the term “Conveyance” as used in the Purchase Agreement
shall hereinafter refer collectively to the conveyances in substantially the
forms of Exhibits B-1 and B-2.

 

Section 1.11                                Amendment
and Restatement of Exhibits A and A-1 and Schedules 1.2(d)(parts 2 of 3 and 3
of 3) and 5.13(part 3 of 4) to the Purchase Agreement. Exhibits A and A-1
and Schedules 1.2(d)(parts 2 of 3 and 3 of 3) and 5.13(part 3 of 4) to the
Purchase Agreement are hereby amended and restated in their entirety to read as
set forth on Exhibits A and A-1 and Schedules 1.2(d)(parts 2 of 3 and 3 of 3)
and 5.13(part 3 of 4), respectively, attached hereto. Any parts to Schedules 1.2(d)
and 5.13 that have not been so amended and restated shall remain unchanged.

 

Section 1.12                                Separate
Assignment of Transportation Agreements. That certain Agreement and
Statement of Operating Conditions dated July 1, 2005, between Anadarko Energy
Services Company (“AESC”) and PanEnergy Louisiana Intrastate, LLC reflected as AESC
contract #9142 on Schedule 1.2(d) (part 2 of 3) to the original Purchase
Agreement and that certain Section 311 and Intrastate Firm Transportation
Agreement dated June 8, 2005, between AESC and Regency Intrastate Gas LLC reflected
as AESC contract #9400 on Schedule 1.2(d) (part 2 of 3) to the original Purchase
Agreement (collectively, the “311 Transportation Agreements”) and that certain
Gas Purchase Agreement dated November 1, 2005, between AESC and EOG Resources
reflected as AESC contract #9349 on Schedule 1.2(d) (part 2 of 3) to the original
Purchase Agreement (the “EOG Gas Purchase Agreement”) will be held back from
the Assets to be transferred and conveyed to Purchaser at Closing. The 311
Transportation Agreements and, subject to receipt of the applicable Transfer
Requirement, the EOG Gas Purchase Agreement will be transferred and conveyed to
Purchaser at a delayed Closing on April 30 (which shall become the new Closing
Date with respect to the 311 Transportation Agreements and EOG Gas Purchase
Agreement); provided, however, for all other purposes under Article 11 of the
Purchase Agreement the 311 Transportation Agreements and EOG Gas Purchase
Agreement shall be deemed “Assets” as of the original Closing Date.

 

Section 1.13                                Amendment
to Schedule 5.7(a) to the Purchase Agreement. Schedule 5.7(a) to the
Purchase Agreement is hereby amended by adding the Proceeding described on 

 

4

 

Schedule 1.13 attached hereto to the end of Schedule 5.7(a) to the
Purchase Agreement. Seller, EPOP and Vernon Gathering agree that such
Proceeding shall be an Excluded Seller Obligation for all purposes under the
Purchase Agreement.

 

Section 1.14                                Certificates
of Title. As soon as reasonably possible following Closing, but by no later
than May 18, 2007, Seller shall deliver all documentation necessary to transfer
title to the vehicles owned by either Seller or any of their respective
Affiliates and included among the Assets.

 

ARTICLE II

ASSIGNMENT

 

Section 2.1                                      Partial
Assignment of Interest in the Purchase Agreement.

 

(a)                                  EPOP hereby assigns to Vernon
Gathering all of EPOP’s rights under the Purchase Agreement insofar as, and
solely to the extent that, such rights relate to the AGC Assets, including the
right to receive the AGC Assets at the Closing.

 

(b)                                 Subject to indemnification by
Seller under Section 11.5, on the Closing Date, Vernon Gathering agrees to
assume and to fulfill, perform, pay and discharge (or cause to be fulfilled,
performed, paid or discharged) the Assumed AGC Obligations.

 

(c)                                  Seller hereby agrees to execute
and deliver the conveyance attached hereto as Exhibit B-2 to Vernon Gathering
at the Closing, and Vernon Gathering hereby agrees to execute and deliver such
conveyance to Seller at the Closing.

 

ARTICLE III

MISCELLANEOUS

 

Section 3.1                                      Severability.
If any term or other provisions of this Amendment is held invalid, illegal or
incapable of being enforced under any rule of Law, all other conditions and
provisions of this Amendment shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in a materially adverse manner with respect to either
party; provided, however, that if any such term or provision may be made
enforceable by limitation thereof, then such term or provision shall be deemed
to be so limited and shall be enforceable to the maximum extent permitted by
applicable Law

 

Section 3.2                                      Governing Law
and Venue. THIS AMENDMENT AND THE LEGAL RELATIONS BETWEEN THE PARTIES SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS OTHERWISE APPLICABLE TO SUCH
DETERMINATIONS. JURISDICTION AND VENUE WITH RESPECT TO ANY DISPUTES ARISING
HEREUNDER SHALL BE PROPER ONLY IN HARRIS COUNTY, TEXAS.

 

Section 3.3                                      Counterparts.
This Amendment may be executed and delivered (including by facsimile
transmission) in counterparts, each of which shall be deemed an original
instrument, but all such counterparts together shall constitute but one
agreement.

 

5

 

Section 3.4                                      Ratification.
The parties hereto hereby ratify and approve the Purchase Agreement, as amended
hereby, and the parties hereto acknowledge that all of the terms and provisions
of the Purchase Agreement, as amended hereby, are and remain in full force and
effect.

 

[Signature Page Follows]

 

6

 

IN WITNESS
WHEREOF, this Amendment is executed by the parties hereto as of the date set
forth above.

 

	
   

  	
  ANADARKO
  PETROLEUM CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Albert L. Richey

  
	
   

  	
  Name:

  	
  Albert L. Richey

  
	
   

  	
  Title:

  	
  Vice President, Corporate Development

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ANADARKO
  GATHERING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Albert L. Richey

  
	
   

  	
  Name:

  	
  Albert L. Richey

  
	
   

  	
  Title:

  	
  Vice President, Corporate Development

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXCO
  PARTNERS OPERATING PARTNERSHIP, 

  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  EXCO Partners OLP GP, LLC, its sole general
  

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. L. Hodges

  
	
   

  	
  Name:

  	
  R. L. Hodges

  
	
   

  	
  Title:

  	
  Vice President – Land

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VERNON
  GATHERING, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. L. Hodges

  
	
   

  	
  Name:

  	
  R. L. Hodges

  
	
   

  	
  Title:

  	
  Vice President – Land

  

 

SIGNATURE PAGE

FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT AND

ASSIGNMENT OF PARTIAL INTEREST IN PURCHASE AND SALE AGREEMENT

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