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Exhibit 10.19    
    

 
  EXECUTION COPY    
    

 
 

AMENDED AND RESTATED
  PLEDGE AGREEMENT FOR STOCK    
    

        This AMENDED AND RESTATED PLEDGE AGREEMENT FOR STOCK ("Pledge Agreement"), entered into as of the 27th day of
January, 2004, by and between EXCO HOLDINGS INC., a Delaware corporation (the "Pledgor") and BANK ONE,
NA, a national banking association having its principal office in Chicago, Illinois, in its capacity as agent (the "Agent" or "Secured Party") for the Lenders under the Credit
Agreement referred to below. 

W
I T N E S S E T H: 

        WHEREAS, EXCO RESOURCES, INC., a Texas corporation (the "Company"), EXCO OPERATING, LP, a Delaware limited partnership
("Operating"), NCE ACQUISITION, INC., a Delaware corporation ("NCE"), Agent and certain lenders from time to time party thereto (the "EXCO Lenders"), are parties to that certain Second Amended
and Restated Credit Agreement dated as of July 29, 2003, pursuant to which the EXCO Lenders agreed to provide the Company, Operating and NCE with certain credit facilities in the form described
therein (as amended, the "Original EXCO Credit Agreement"); 

        WHEREAS, NORTH COAST ENERGY, INC., a Delaware corporation ("North Coast"), certain of the Lenders and Union Bank of California, NA,
as Administrative Agent (the "North Coast Agent"), are parties to that certain Credit Agreement dated as of September 26, 2000 pursuant to which the lenders thereunder (the "North Coast
Lenders") agreed to provide North Coast certain credit facilities in the form therein described (as amended, the "Original North Coast Credit Agreement" and together with the Original EXCO Credit
Agreement, the "Original Credit Agreements"); 

        WHEREAS, the Company, NCE, North Coast and NUON Energy & Water Investments, Inc., a Delaware corporation are parties to that
certain Agreement and Plan of Merger, dated November 26, 2003 as amended and restated on December 4, 2003, providing for the merger of NCE with and into North Coast (the "North Coast
Merger"); 

        WHEREAS, in connection with and subject to the consummation of the North Coast Merger, the Company, Operating, NCE, North Coast and North
Coast Energy Eastern, Inc., a Delaware corporation ("North Coast Eastern") have each requested that the EXCO Lenders, the North Coast Lenders, the North Coast Agent and Agent agree to make
certain changes to the Original Credit Agreements and have each requested that the Original Credit Agreements and the schedules thereto be amended and restated in their entirety; 

        WHEREAS, pursuant to such request, the Company, Operating, North Coast, North Coast Eastern (collectively, the "Borrowers"), Agent and
each of the financial institutions party thereto ("Lenders") have entered into that certain Third Amended and Restated Credit Agreement dated as of January 27th, 2004 (as same may be amended or
modified from time to time, the "Credit Agreement"), providing, subject to the terms and conditions thereof, for extensions of credit to be made by the Lenders to the Borrowers; 

        WHEREAS, it was a condition precedent to the Agent and the EXCO Lenders executing the Original EXCO Credit Agreement that Pledgor execute
that certain Pledge Agreement for Stock dated July 29, 2003 in favor of the Agent, for the benefit of the EXCO Lenders (the "Original Pledge Agreement"); 

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        WHEREAS, it is a condition precedent to the Agent and the Lenders executing the Credit Agreement that Pledgor execute and deliver this
Pledge Agreement whereby Pledgor shall pledge to Secured Party certain collateral; and 

        WHEREAS, in order to secure the payment and performance of the obligations of the Borrowers and any Subsidiary Guarantor to Secured Party
and the Lenders as described herein, Pledgor has agreed to pledge to Secured Party the collateral described herein. 

        NOW, THEREFORE, for and in consideration of the foregoing premises, the mutual covenants set forth in this Pledge Agreement and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

        Section 1.
Pledge. As collateral security for the due and timely payment and performance and discharge in full of the obligations
described in Section 2 hereof, Pledgor hereby pledges, hypothecates, assigns, transfers, sets over and delivers unto Secured Party and hereby creates and grants to Secured Party a security
interest in: 

        (a)   all
now owned or existing or hereafter acquired or arising issued and outstanding Capital Stock of the Company (the "Pledged Securities"); 

        (b)   any
and all other securities hereafter deposited by Pledgor with Secured Party pursuant to subsection 11(a) of this Pledge Agreement; 

        (c)   any
and all cash, additional securities and other property that may at any time or from time to time hereafter be distributed or otherwise received in respect of, on
account of, upon, in exchange for, in substitution for or upon conversion of any or all of the Pledged Securities or any or all of the securities referred to in clause (d) of this Section,
whether directly or indirectly as a result of one or more distributions, receipts, exchanges or substitutions; and 

        (d)   any
and all proceeds arising from the sale or other disposition of any or all of the Pledged Securities, the securities referred to in clause (d) of this Section
(the Pledged Securities, such other securities and such cash, additional securities and other property and the proceeds thereof being hereinafter called collectively the "Collateral"). 

        Section 2.  Obligations Secured. The security interest created hereby secures the following (collectively, the "Indebtedness"):

        (a)   Credit Agreement. Payment of the obligations and indebtedness evidenced by, and performance and discharge of each and
every covenant, condition and agreement contained in the Credit Agreement, the Notes and the other Loan Documents. 

        (b)   This Pledge Agreement. Payment of any and all indebtedness of Pledgor hereunder and the performance and discharge of each
and every obligation, covenant, and agreement of Pledgor herein contained. 

        (c)   Rate Management Transactions. Payment of any and all obligations, contingent or otherwise, whether now existing or
hereafter arising, of Pledgor, any Borrower or any Subsidiary Guarantor to the Lenders or to any of their Affiliates or successors arising under or in connection with Rate Management Transactions (as
hereinafter defined). For the purposes hereof, the term "Rate Management Transactions" means any transactions (including an agreement with respect thereto) now existing or hereafter entered into among
Pledgor, any Borrower or any Subsidiary Guarantor with any Lender or any Affiliate or successor to any Lender, which is a rate swap, basic swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option, interest rate option, forward exchange transaction, cap transaction, collar transaction, forward transaction, currency
swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with 

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respect
to any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures. 

        Section 3.
Representations and Warranties. The Pledgor hereby represents and warrants to Secured Party that: 

        (a)   The
Pledgor is the legal and equitable owner of the Collateral, has the necessary corporate authority to pledge the Collateral being pledged by it and holds the same
free and clear of all liens, charges, encumbrances and security interests of every kind and nature; the Pledgor has good right and legal authority to pledge the Collateral being pledged by it in the
manner hereby done or contemplated and will defend its title thereto against the claims of all persons whomsoever. 

        (b)   Except
for any required notifications to and actions required by the Secretary of the Company, if any, required by applicable law, with respect to the pledge of the
Pledged Securities provided for in this Pledge Agreement, no consent or approval of any person, governmental body or regulatory authority, or of any securities exchange, was or is necessary to the
validity of such pledge. 

        Section 4.  Events of Default. The term "Default" as used herein, shall mean (i) the occurrence of any Event of Default, as
that term is defined in the Credit Agreement or (ii) if any representation, warranty or other information provided or delivered by Pledgor in connection with this Pledge Agreement is determined
to be in any respect false or misleading. 

        Section 5.
Remedies Upon Default. Upon the occurrence and during the continuance of a Default: 

        (a)   Secured
Party shall be entitled to exercise any and all rights granted to it by the Note, the Credit Agreement, and this Pledge Agreement. 

        (b)   Secured
Party shall be entitled to exercise any and all rights and remedies of a secured party under the Uniform Commercial Code of the State of Texas (the "Code"), and
any and all rights granted by any other applicable law or statute, including, without limitation, the right to take whatever steps it deems reasonably necessary to preserve the value of the Collateral
pledged to it or in which it otherwise has a security interest and to enforce and realize upon such security interest in such Collateral. 

        (c)   Secured
Party may, upon notice to Pledgor (i) without giving notice to the Pledgor, apply, in the manner set forth in Section 6 below, any cash dividends
or interest received by it and (ii) if following such application, there shall remain outstanding any obligations, sell the remaining Collateral, or any part thereof, at public or private sale,
for cash, upon credit or for future delivery as Secured Party shall deem appropriate. Secured Party shall be authorized at any such sale (if, on the advice of counsel, it deems it advisable to do so)
to restrict the prospective bidders or purchasers to persons who will represent and agree that they are purchasing the Collateral for their own account for investment and not with a view to the
distribution or sale thereof, and upon consummation of any such sale, Secured Party shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold.
Each such purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of Pledgor, and the Pledgor hereby waives (to the extent permitted by law) all
rights of redemption, stay and/or appraisal that Pledgor now has or may at any time in the future have, under any rule of law or statute now existing or hereafter enacted. 

        (d)   Secured
Party shall give Pledgor ten (10) days' written notice of Secured Party's intention to make any such public or private sale. Such notice, in case of
public sale, shall state the time and place for such sale, and, in the case of private sale, the day on which the Collateral, or any portion thereof, will first be offered for sale. Any such public
sale shall be held at such time or times 

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within
the ordinary business hours and at such place or places as Secured Party may fix and shall state in the notice of such sale. At any sale, the Collateral, or any portion thereof, to be sold may
be sold in one lot as an entirety or in separate parcels, as Secured Party may (in its sole and absolute discretion) determine. Secured Party shall not be obligated to make any sale of Collateral if
it shall determine not to do so, regardless of the fact that notice of sale of Collateral may have been given. Secured Party may, without notice or publication, adjourn any public or private sale or
cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so
adjourned. In the event a sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by Secured Party until the sale price is paid by
the purchaser or purchasers thereof, but Secured Party shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of
any such failure, such Collateral may be sold again upon like notice. As an alternative to exercising the power of sale herein conferred upon it, Secured Party may proceed by a suit or suits at law or
in equity to foreclose under this Pledge Agreement and to sell the Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction. 

        (e)   Secured
Party may at its option retain the Collateral in satisfaction of the obligations whenever the circumstances are such that Secured Party is entitled to do so
under the Code. 

        (f)    Secured
Party may at its option perform or attempt to perform (but Secured Party shall not be obligated to do so) any of Pledgor's covenants, duties, liabilities,
obligations, or agreements hereunder or under the Note, the Credit Agreement, and/or this Pledge Agreement, and any amount expended by Secured Party in such performance or attempted performance shall
become a part of the obligations, and Pledgor agrees to promptly pay any such amount to Secured Party. 

        In
order to facilitate Secured Party's enforcing its rights and remedies with respect to the Collateral and in order to allow Secured Party to preserve the property or interest in
property evidenced by the certificate(s) representing the Collateral, Secured Party may cause the Pledged Securities or any other Collateral to be transferred to its own name and it may take such
actions as are deemed reasonably necessary by it, and Pledgor will take whatever actions and execute whatever documents are deemed reasonably necessary by Secured Party, to register any such transfer
and to cause any and all governmental agencies, if any, having jurisdiction to consent to and approve such transfer. 

        Secured
Party shall not be liable for any action taken in good faith or believed in good faith to be within the power, authority and discretion given to Secured Party hereunder in the
Credit Agreement
or in the Note, and Pledgor does hereby agree that any action so taken by Secured Party shall not be considered as an impairment of the Collateral. 

        No
waiver by Secured Party of any Default shall operate as a waiver of any other Default or of the same Default on a future occasion, and no failure or delay by Secured Party in
exercising any right, power, or privilege hereunder shall operate as a waiver thereof, and no single or partial exercise thereof shall preclude any other or further exercise or the exercise of any
other right, power or privilege. 

        Section 6.
Application of Proceeds of Sale and Cash. The proceeds of any sale of Collateral sold pursuant to Section 5
hereof and any cash included in the Collateral shall be applied by Secured Party as follows: 

        First: to the payment of all costs and expenses incurred by Secured Party in connection with such sale, including, but not limited to, all
court costs and the reasonable fees and expenses of counsel for Secured Party in connection therewith, and to the repayment of all advances made by Secured Party hereunder for the account of Pledgor
and the payment of all costs and expenses paid or incurred by 

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Secured
Party upon the exercise of any right or remedy hereunder or thereunder, to the extent that such advances, costs and expenses shall not have been paid to Secured Party upon its demand therefor; 

        Second: to the payment in full of the obligations secured hereby, to the extent not previously paid by Pledgor with any amounts in payment
applied first to interest, then to principal; and 

        Third: to the payment to Pledgor of any remainder of such proceeds. 

        Section 7.  Reimbursement of Secured Party. The Pledgor hereby agrees to reimburse Secured Party on demand for all expenses incurred
by it in connection with the administration and enforcement of this Pledge Agreement, and agrees to indemnify Secured Party and hold it harmless from and against any and all liability incurred by it
hereunder or in connection herewith unless caused by the gross negligence or willful misconduct of Secured Party or any of the Lenders or of its or their employees, agents or representatives. 

        Section 8.
Authority of Secured Party; Financing Statements. Secured Party shall have and be entitled to exercise all such powers
hereunder as are specifically delegated to Secured Party by the terms hereof, together with such powers as are reasonably incidental thereto. Secured Party may execute any of its duties hereunder by
or through agents or employees and shall be entitled to retain counsel and to act
in reliance upon the advice of such counsel concerning all matters pertaining to its duties hereunder. The Pledgor hereby authorizes the Secured Party to file, and if requested will execute and
deliver to the Secured Party, all financing statements and other documents and take such other actions as may from time to time be requested by the Secured Party in order to maintain a first perfected
security interest in and, if applicable, Control of, the Collateral. The Pledgor will take any and all actions necessary to defend title to the Collateral against all persons and to defend the
security interest of the Secured Party in the Collateral and the priority thereof against any Lien not expressly permitted hereunder. "Control" shall have the meaning set forth in Article 8,
or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the Code as in effect from time to time. 

        Section 9.
Secured Party Appointed Attorney-in-Fact. The Pledgor hereby appoints Secured Party as Pledgor's
attorney-in-fact for the purpose of carrying out the provisions of this Pledge Agreement and taking any action and executing any instrument which it may deem necessary or
advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest. Without limiting the generality of the foregoing, Secured Party shall have the right and
power at any time while a Default exists to receive, endorse and collect all checks and other orders for the payment of money made payable to the Pledgor representing any interest or dividend or other
distribution or amount payable in respect of the Pledged Securities or other Collateral or any part thereof and to give full discharge for the same. 

        Section 10.
Voting Rights, Dividends, Etc.

        (a)   Except
upon occurrence and during the continuance of any Default hereunder, Pledgor shall have the right to vote any of the Collateral on any matter presented for
approval to the security holders of the issuer(s) of the Pledged Securities or other Collateral. 

        (b)   Any
and all stock or liquidating dividends, other distributions in property, return of capital or other distributions made on or in respect of any of the Collateral,
whether resulting from a subdivision, combination or reclassification of the outstanding capital stock of the issuer(s) thereof or received in exchange for or upon conversion of the Collateral, or any
part thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which the issuer(s) thereof may be a party or otherwise, shall be and become part of the
Collateral pledged hereunder and, if received by Pledgor, shall forthwith be delivered to Secured Party to be held by it as Collateral hereunder and shall be applied in accordance with the provisions
hereof. 

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        (c)   Except
upon the occurrence and during the continuance of any Default hereunder, Pledgor shall have the sole and exclusive right to receive and retain the dividends and
interest payable or accruing from any of the Collateral, and to retain all other rights and benefits from the Collateral. 

        Section 11.  Covenants With Respect to Collateral. The Pledgor agrees with Secured Party with respect to the Collateral as follows:

        (a)   Pledgor
hereby transfers the Pledged Securities to Secured Party with proper instruments of assignment duly executed. The Pledgor covenants that it will cause any
additional securities issued to or received by the Pledgor with respect to any of the Collateral, whether for value paid by the Pledgor or otherwise, to be forthwith deposited and pledged hereunder,
in each case accompanied by proper instruments of assignment duly executed in blank by Pledgor. 

        (b)   From
and after the date hereof, Pledgor (i) shall not and shall not attempt to encumber, subject to any further pledge or security interest, sell, transfer or
otherwise dispose of any of the Collateral or any interest therein; (ii) shall not permit or suffer any of the Collateral to be attached or levied upon or seized in any legal proceedings, or
held by virtue of any lien or distress; and (iii) shall pay promptly all taxes and assessments upon any of the Collateral. 

        Section 12.
Termination. This Pledge Agreement will terminate when the Credit Agreement and all obligations secured hereby have
been fully paid and performed, at which time Secured Party shall reassign and deliver to Pledgor, or to such person or persons as Pledgor shall designate, against receipt, such of the Collateral (if
any) pledged by Pledgor as shall not have been sold or otherwise applied by Secured Party pursuant to the terms hereof and shall still be held by it hereunder, together with appropriate instruments of
reassignment and release. Any such reassignment shall be without recourse upon or warranty by Secured Party and at the expense of Pledgor. 

        Section 13.
Binding Agreement, Assignment. This Pledge Agreement, and the terms, covenants and conditions hereof, shall be binding
upon and inure to the benefit of the parties hereto and to all holders of indebtedness secured hereby and their respective successors and assigns, except that Pledgor shall not be permitted to assign
this Pledge Agreement or any interest herein or in the Collateral, or any part thereof, or otherwise pledge, encumber or grant any option with respect to the Collateral, or any part thereof, or any
cash or property held by Secured Party as Collateral under this Pledge Agreement. 

        Section 14.
Interest Charges Not Permitted by Law. No provision of this Pledge Agreement or of the Note or the Credit Agreement
shall require the payment or permit the collection of interest in excess of the maximum permitted by law. If any interest in excess of the maximum permitted by law is provided for in this Pledge
Agreement or in the Note or in the Credit Agreement or shall be adjudicated to be so provided, then neither Pledgor nor its successors or assigns shall be obligated to pay such interest in excess of
the amount permitted by law, and the right to demand the payment of any such excess shall be and hereby is waived and this provision shall control any other provision of this Pledge Agreement or of
the Note or of the Credit Agreement. 

        Section 15.
Notices. All notices, requests and other communications to any party hereunder shall be given or made by telecopier or
other writing and telecopied, or mailed or delivered to the intended recipient at its address or telecopier number set forth on the signature pages hereof or such other address or telecopy number as
such party may hereafter specify for such purpose by notice to the Agent in accordance with the provisions of this Section 15. Except as otherwise provided in this Pledge Agreement, all such
communications shall be deemed to have been duly given when transmitted by telecopier, or personally delivered or, in the case of a mailed notice sent by certified mail return-receipt requested, on
the date set forth on the receipt (provided, that any refusal to accept any such notice 

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shall
be deemed to be notice thereof as of the time of any such refusal), in each case given or addressed as aforesaid. 

        Section 16.
Choice of Law. It is the intention of the parties hereto that the laws of the State of Texas should govern the validity
of this Pledge Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto, and Pledgor hereby agrees and consents that any action or proceeding
against it to enforce the obligations of this Pledge Agreement, may, at the option of Secured Party, be commenced in any court of competent jurisdiction and proper venue within the State of Texas,
whether State or Federal, by service of process upon it by registered or certified mail, return receipt requested, addressed to Pledgor at its then address for notices pursuant to Section 15. 

        Section 17.
Further Assurances. The Pledgor agrees to do such further acts and things, and to execute and deliver such additional
conveyances, assignments, agreements and instruments, as Secured Party may at any time reasonably request in connection with the administration and enforcement of this Pledge Agreement or relative to
the Collateral or any part thereof or in order better to assure and confirm unto Secured Party its rights and remedies hereunder. 

        Section 18.
Execution in Counterparts. This Pledge Agreement may be executed in one or more counterparts and by different parties
hereto in separate counterparts each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature
pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. However, this Pledge Agreement
shall bind no party until Holdings and Secured Party have executed a counterpart. Facsimiles shall be effective as originals. 

        Section 19.
Headings. Section headings used herein are for convenience only and are not to affect the construction of or to be
taken into consideration in interpreting this Pledge Agreement. 

        Section 20.
Severability. Should any one or more of the provisions hereof be determined to be illegal or unenforceable, all other
provisions hereof shall be given effect separately therefrom and shall not be affected thereby. 

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        IN
WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed as of the day first above written. 

	 	 	HOLDINGS:
	

 	
 	
EXCO HOLDINGS INC.

a Delaware corporation
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	Name: J. Douglas Ramsey

Title: Chief Financial Officer

	

 	
 	

EXCO Holdings Inc.

c/o EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251
	 	 	Attention:	Douglas H. Miller

Chief Executive Officer
	 	 	Attention:	J. Douglas Ramsey

Chief Financial Officer
	 	 	Facsimile No.: 214-368-2087

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AGENT:
	

 	
 	
BANK ONE, NA

a national banking association

(Main Office Chicago)

as a Lender and as Administrative Agent
	

 	
 	

By:	

/s/  WM. MARK CRANMER      

	 	 	Name: Wm. Mark Cranmer

Title: Director, Capital Markets

	

 	
 	

Bank One, NA

Mail Code IL1-0634

1 Bank One Plaza

Chicago, Illinois 60670-0634

Facsimile No.: 312-732-4840

Attention: Jim Moore
	

 	
 	

With a copy to:
	

 	
 	

Bank One, NA

1717 Main Street

Mail Code TX1-2448

Dallas, Texas 75201

Facsimile No.: 214-290-2332
	 	 	Attention:	Wm. Mark Cranmer

Director, Capital Markets

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Exhibit 10.19

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AMENDED AND RESTATED PLEDGE AGREEMENT FOR STOCKQuickLinks
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Exhibit 10.20    
    

 
  EXECUTION COPY    
    

 
 

AMENDED AND RESTATED SUBSIDIARY GUARANTY    
    

        This AMENDED AND RESTATED SUBSIDIARY GUARANTY (this "Guaranty") is made as of the 27th day of January, 2004, by
TAURUS ACQUISITION, INC., a Texas corporation, EXCO INVESTMENT I, LLC, a Delaware limited liability company and EXCO INVESTMENT II, LLC, a Delaware limited liability company (the "Subsidiary
Guarantors" and each individually, a "Subsidiary Guarantor") in favor of Bank One, NA, a national banking association having its principal office in Chicago, Illinois, in its capacity as agent (the
"Agent") for the Lenders under the Credit Agreement referred to below; 

W I T N E S S E T H:  

        WHEREAS, EXCO RESOURCES, INC., a Texas corporation (the "Company"), EXCO OPERATING, LP, a Delaware limited
partnership ("Operating"), NCE ACQUISITION, INC., a Delaware corporation ("NCE"), Agent and certain lenders from time to time party thereto (the "EXCO Lenders") are parties to that certain
Second Amended and Restated Credit Agreement dated as of July 29, 2003, pursuant to which the EXCO Lenders agreed to provide the Company, Operating and NCE with certain credit facilities in the
form described therein (as amended, the "Original EXCO Credit Agreement"); 

        WHEREAS, NORTH COAST ENERGY, INC., a Delaware corporation ("North Coast"), certain of the Lenders and Union Bank of California, NA,
as Administrative Agent (the "North Coast Agent"), are parties to that certain Credit Agreement dated as of September 26, 2000 pursuant to which the lenders thereunder (the "North Coast
Lenders") agreed to provide North Coast certain credit facilities in the form therein described (as amended, the "Original North Coast Credit Agreement" and together with the Original EXCO Credit
Agreement, the "Original Credit Agreements"); 

        WHEREAS, the Company, NCE, North Coast and NUON Energy & Water Investments, Inc., a Delaware corporation are parties to that
certain Agreement and Plan of Merger, dated November 26, 2003 and amended and restated on December 4, 2003, providing for the merger of NCE with and into North Coast (the "North Coast
Merger"); 

        WHEREAS, in connection with and subject to the consummation of the North Coast merger, the Company, Operating, NCE, North Coast and North
Coast Eastern have each requested that the EXCO Lenders, the North Coast Lenders, the North Coast Agent and Agent agree to make certain changes to the Original Credit Agreements and have each
requested that the Original Credit Agreements and the schedules thereto be amended and restated in their entirety; 

        WHEREAS, pursuant to such request, the Company, Operating, North Coast, North Coast Eastern (collectively, the "Principals"), Agent, and
each of the financial institutions party thereto ("Lenders") have entered into that certain Third Amended and Restated Credit Agreement dated as of January 27, 2004 (as same may be amended or
modified from time to time, the "Credit Agreement"), providing, subject to the terms and conditions thereof, for extensions of credit to be made by the Lenders to the Principals; 

        WHEREAS, it was a condition precedent to the Agent and the EXCO Lenders execution of certain amendments of the Original EXCO Credit
Agreement and the continued extension of credit by the Lenders under the Original EXCO Credit Agreement that (i) Taurus execute that certain Subsidiary Guaranty dated July 29, 2003 in
favor of the Agent, for the benefit of the Lenders (the 

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"Original
Taurus Guaranty") and (ii) EXCO Investment I and EXCO Investment II execute that certain Subsidiary Guaranty dated January 20, 2004 in favor of the Agent, for the benefit of
the Lenders (the "Original Investment Subsidiaries Guaranty"; and together with the Original Taurus Guaranty, the "Original Guaranties"); 

        WHEREAS, it is a condition precedent to the Agent and the Lenders executing the Credit Agreement that each of the Subsidiary Guarantors
execute and deliver this Guaranty whereby each of the Subsidiary Guarantors shall guarantee the payment when due, subject to Section 9 hereof, of all Guaranteed Obligations, as defined below;
and 

        WHEREAS, in consideration of the financial and other support that the Principals have provided, and such financial and other support as
the Principals may in the future provide, to the Subsidiary Guarantors, and in order to induce the Lenders and the Agent to enter into the Credit Agreement, and the Lenders and their Affiliates to
enter into one or more Rate Management Transactions with the Principals, and because each Subsidiary Guarantor has determined that executing this Guaranty is in its interest and to its financial
benefit, each of the Subsidiary Guarantors is willing to guarantee the obligations of the Principals under the Credit Agreement, any Note, any Rate Management Transaction, and the other Loan
Documents. 

        NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows: 

        SECTION
l.1. Selected Terms Used Herein. 

        "Guaranteed
Obligations" is defined to mean (i) all indebtedness, obligations and liabilities of Borrowers to any Lender arising out of or pursuant to the provisions of the Credit
Agreement, the Notes and Other Loan Documents, (ii) all indebtedness, obligations and liabilities of Borrowers to any Lender of any kind or character now existing or hereafter arising, whether
direct, indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several or joint and several, and regardless of whether such indebtedness, obligations and liabilities may,
prior to their acquisition by any Lender, be or have been payable to or in favor of a third party and subsequently acquired by any Lender (it being contemplated that any Lender may make such
acquisitions from third parties), including without limitation all indebtedness, obligations and liabilities of Borrowers to any Lender now existing or hereafter arising by note, draft, acceptance,
guaranty, endorsement, letter of credit, assignment, purchase, overdraft, discount, indemnity agreement or otherwise, (iii) all accrued but unpaid interest on any of the indebtedness described
in (i) and (ii) above, (iv) all obligations of Borrowers to any Lender under any documents evidencing, securing, governing and/or pertaining to all or any part of the indebtedness
described in (i), (ii) and (iii) above, (v) all costs and expenses incurred by any Lender in connection with the collection and administration of all or any part of the
indebtedness and obligations described in (i), (ii), (iii) and (iv) above or the protection or preservation of, or realization upon, the collateral securing all or any part of such
indebtedness and obligations, including without limitation all reasonable attorneys' fees, and (vi) all renewals, extensions, modifications and rearrangements of the indebtedness and
obligations described in (i), (ii), (iii), (iv) and (v) above. 

        "Rate
Management Obligations" means any and all obligations of any Principal, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions herefore), under (i) any and all Rate Management Transactions with Agent or a Lender or an Affiliate of Agent or
a Lender, and (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any Rate Management Transactions. 

        SECTION
1.2. Terms in Credit Agreement. Other capitalized terms used herein but not defined herein shall have the meaning set forth in the
Credit Agreement. 

2

 

        SECTION
2.1. Representations and Warranties. Each of the Subsidiary Guarantors represents and warrants (which representations and
warranties shall be deemed to have been renewed upon each Borrowing Date under the Credit Agreement) that: 

        (a)   It
is a corporation, partnership or limited liability company duly and properly incorporated or organized, as the case may be, validly existing and (to the extent such
concept applies to such entity) in good standing under the laws of its jurisdiction of incorporation or organization and has all requisite authority to conduct its business in each jurisdiction in
which its business is conducted. 

        (b)   It
has the power and authority and legal right to execute and deliver this Guaranty and to perform its obligations hereunder. The execution and delivery by it of this
Guaranty and the performance of its obligations hereunder have been duly authorized by proper corporate proceedings, and this Guaranty constitutes a legal, valid and binding obligation of such
Subsidiary Guarantor enforceable against it in accordance with its terms, except as enforceability may be limited by general principles of equity and bankruptcy, insolvency or similar laws affecting
the enforcement of creditors' rights generally. 

        (c)   Neither
the execution and delivery by it of this Guaranty, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof will
violate (i) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on it or any of its subsidiaries or (ii) its articles or certificate of incorporation,
partnership agreement, certificate of partnership, articles or certificate of organization, by-laws, or operating or other management agreement, as the case may be, or (iii) the
provisions of any indenture, instrument or agreement to which it or any of its subsidiaries is a party or is subject, or by which it, or its property, real or personal, is bound, or conflict with or
constitute a default thereunder, or result in, or require, the creation or imposition of any Lien in, of or on the Property of such Subsidiary Guarantor or a subsidiary thereof pursuant to the terms
of any such indenture, instrument or agreement. No order, consent, adjudication, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, or
other action in respect of any governmental or public body or authority, or any subdivision thereof, which has not been obtained by it or any of its subsidiaries, is required to be obtained by it or
any of its subsidiaries in connection with the execution and delivery of this Guaranty or the performance by it of its obligations hereunder or the legality, validity, binding effect or enforceability
of this Guaranty. 

        SECTION
2.2. Covenants. Each of the Subsidiary Guarantors covenants that, so long as any Lender has any Commitment outstanding under the
Credit Agreement, any Rate Management Transaction remains in effect or any of the Guaranteed Obligations shall remain unpaid, that it will, and, if necessary, will
enable the Principals to, fully comply with the covenants and agreements set forth in the Credit Agreement. 

        SECTION
3. The Guaranty. Subject to Section 9 hereof, each of the Subsidiary Guarantors hereby absolutely and unconditionally
guarantees, as primary obligor and not as surety, the full and punctual payment (whether at stated maturity, upon acceleration or early termination or otherwise, and at all times thereafter) and
performance of the Guaranteed Obligations and the Rate Management Obligations, including without limitation any such Guaranteed Obligations or Rate Management Obligations incurred or accrued during
the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, whether or not allowed or allowable in such proceeding. Upon failure by the Principals to pay punctually any such
amount, each of the Subsidiary Guarantors agrees that it shall forthwith on demand pay to the Agent for the benefit of the Lenders and, if applicable, their Affiliates, the amount not so paid at the
place and in the manner specified in the Credit Agreement, any Note, any Rate Management Transaction or the relevant Loan Document, as the case may be. This Guaranty is a guaranty of payment and not
of collection. Each of the Subsidiary Guarantors waives any right to 

3

 

require
the Lender to sue any Principal, any other guarantor, or any other person obligated for all or any part of the Guaranteed Obligations, or otherwise to enforce its payment against any
collateral securing all or any part of the Guaranteed Obligations. 

        SECTION
4. Guaranty Unconditional. Subject to Section 9 hereof, the obligations of each of the Subsidiary Guarantors hereunder
shall be unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 

        (a)   any
extension, renewal, settlement, compromise, waiver or release in respect of any of the Guaranteed Obligations, by operation of law or otherwise, or any obligation of
any other guarantor of any of the Guaranteed Obligations, or any default, failure or delay, willful or otherwise, in the payment or performance of the Guaranteed Obligations; 

        (b)   any
modification or amendment of or supplement to or restatement of the Credit Agreement, any Note, any Rate Management Transaction or any other Loan Document; 

        (c)   any
release, nonperfection or invalidity of any direct or indirect security for any obligation of the Principals under the Credit Agreement, any Note, any Security
Instrument, any Rate Management Transaction, any other Loan Document, or any obligations of any other guarantor of any of the Guaranteed Obligations, or any action or failure to act by the Agent, any
Lender or any Affiliate of any Lender with respect to any collateral securing all or any part of the Guaranteed Obligations or the Rate Management Transactions; 

        (d)   any
change in the corporate existence, structure or ownership of any Principal or any other guarantor of any of the Guaranteed Obligations, or any insolvency,
bankruptcy, reorganization or other similar proceeding affecting any Principal, or any other guarantor of the Guaranteed Obligations, or its assets or any resulting release or discharge of any
obligation of any Principal, or any other guarantor of any of the Guaranteed Obligations or the Rate Management Transactions; 

        (e)   the
existence of any claim, setoff or other rights which the Subsidiary Guarantors may have at any time against any Principal, any other guarantor of any of the
Guaranteed Obligations, the Agent, any Lender or any other Person, whether in connection herewith or any unrelated transactions; 

        (f)    any
invalidity or unenforceability relating to or against any Principal, or any other guarantor of any of the Guaranteed Obligations, for any reason related to the
Credit Agreement, any Rate Management Transaction, any other Loan Document, or any provision of applicable law or regulation purporting to prohibit the payment by any Principal, or any other guarantor
of the Guaranteed Obligations, of the principal of or interest on any Note or any other amount payable by the Principals under the Credit Agreement, any Note, any Rate Management Transaction or any
other Loan Document; or 

        (g)   any
other act or omission to act or delay of any kind by any Principal, any other guarantor of the Guaranteed Obligations, the Agent, any Lender or any other Person or
any other circumstance whatsoever which might, but for the provisions of this paragraph, constitute a legal or equitable discharge of any Subsidiary Guarantor's obligations hereunder. 

        SECTION
5. Discharge Only Upon Payment In Full: Reinstatement In Certain Circumstances. Each of the Subsidiary Guarantor's obligations
hereunder shall remain in full force and effect until all Guaranteed Obligations shall have been indefeasibly paid in full, the Commitments under the Credit Agreement shall have terminated or expired
and all Rate Management Transactions have terminated or expired. If at any time any payment of the principal of or interest on any Note or any other amount payable by the Principals or any other party
under the Credit Agreement, any Rate Management Transaction or any other Loan Document is rescinded or must be otherwise restored or returned upon 

4

 

the
insolvency, bankruptcy or reorganization of any Principal or otherwise, each of the Subsidiary Guarantor's obligations hereunder with respect to such payment shall be reinstated as though such
payment had been due but not made at such time. 

        SECTION
6. Waivers. Each of the Subsidiary Guarantors irrevocably waives acceptance hereof, presentment, demand, protest and, to the
fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against any Principal, any other guarantor of any of
the Guaranteed Obligations, or any other Person. 

        SECTION
7. Subrogation. Each of the Subsidiary Guarantors hereby agrees not to assert any right, claim or cause of action, including,
without limitation, a claim for subrogation, reimbursement, indemnification or otherwise, against any Principal arising out of or by reason of this Guaranty or the obligations hereunder, including,
without limitation, the payment or securing or purchasing of any of the Guaranteed Obligations by any of the Subsidiary Guarantors unless and until the Guaranteed Obligations are indefeasibly paid in
full, any commitment to lend under the Credit Agreement and any other Loan Documents is terminated and all Rate Management Transactions have terminated or expired. 

        SECTION
8. Stay of Acceleration. If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the
insolvency, bankruptcy or reorganization of any Principal, all such amounts otherwise subject to acceleration under the terms of the Credit Agreement, any Note, any Rate Management Transaction or any
other Loan Document shall nonetheless be payable by each of the Subsidiary Guarantors hereunder forthwith on demand by the Agent made at the request of the Required Lenders. 

        SECTION
9. Limitation on Obligations. 

        (a)   The
provisions of this Guaranty are severable, and in any action or proceeding involving any state corporate law, or any state, federal or foreign bankruptcy,
insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any Subsidiary Guarantor under this Guaranty would otherwise be held or determined to be
avoidable, invalid or unenforceable on account of the amount of such Subsidiary Guarantor's liability under this Guaranty, then, notwithstanding any other provision of this Guaranty to the contrary,
the amount of such liability shall, without any further action by the Subsidiary Guarantors, the Agent or any Lender, be automatically limited and reduced to the highest amount that is valid and
enforceable as determined in such action or proceeding (such highest amount determined hereunder being the relevant Subsidiary Guarantor's "Maximum Liability"). This Section 9(a) with respect
to the Maximum Liability of the Subsidiary Guarantors is intended solely to preserve the rights of the Agent hereunder to the maximum extent not subject to avoidance under applicable law, and neither
the Subsidiary Guarantor nor any other person or entity shall have any right or claim under this Section 9(a) with respect to the Maximum Liability, except to the extent necessary so that the
obligations of the Subsidiary Guarantor hereunder shall not be rendered voidable under applicable law. 

        (b)   Each
of the Subsidiary Guarantors agrees that the Guaranteed Obligations may at any time and from time to time exceed the Maximum Liability of each Subsidiary Guarantor,
and may exceed the aggregate Maximum Liability of all other Subsidiary Guarantors, without impairing this Guaranty or affecting the rights and remedies of the Agent hereunder. Nothing in this
Section 9(b) shall be construed to increase any Subsidiary Guarantor's obligations hereunder beyond its Maximum Liability. 

        (c)   In
the event any Subsidiary Guarantor (a "Paying Subsidiary Guarantor") shall make any payment or payments under this Guaranty or shall suffer any loss as a result of
any realization upon any collateral granted by it to secure its obligations under this Guaranty, each other 

5

 

Subsidiary
Guarantor (each a "Non-Paying Subsidiary Guarantor") shall contribute to such Paying Subsidiary Guarantor an amount equal to such Non-Paying Subsidiary Guarantor's
"Pro Rata Share" of such payment or payments made, or losses suffered, by such Paying Subsidiary Guarantor. For the purposes hereof, each Non-Paying Subsidiary Guarantor's "Pro Rata Share"
with respect to any such payment or loss by a Paying Subsidiary Guarantor shall be determined as of the date on which such payment or loss was made by reference to the ratio of (i) such
Non-Paying Subsidiary Guarantor's Maximum Liability as of such date (without giving effect to any right to receive, or obligation to make, any contribution hereunder) or, if such
Non-Paying Subsidiary Guarantor's Maximum Liability has not been determined, the aggregate amount of all monies received by such Non-Paying Subsidiary Guarantor from the
Principals after the date hereof (whether by loan, capital infusion or by other means) to (ii) the aggregate Maximum Liability of all Subsidiary Guarantors hereunder (including such Paying
Subsidiary Guarantor) as of such date (without giving effect to any right to receive, or obligation to make, any contribution hereunder), or to the extent that a Maximum Liability has not been
determined for any Subsidiary Guarantors, the aggregate amount of all monies received by such Subsidiary Guarantors from the Principals after the date hereof (whether by loan, capital infusion or by
other means). Nothing in this Section 9(c) shall affect any Subsidiary Guarantor's several liability for the entire amount of the Guaranteed Obligations (up to such Subsidiary Guarantor's
Maximum Liability). Each of the Subsidiary Guarantors covenants and agrees that its right to receive any contribution under this Guaranty from a Non-Paying Subsidiary Guarantor shall be
subordinate and junior in right of payment to all the Guaranteed Obligations. The provisions of this Section 9(c) are for the benefit of both the Agent and the Subsidiary Guarantors and may be
enforced by any one, or more, or all of them in accordance with the terms hereof. 

        SECTION
10. Application of Payments. All payments received by the Agent hereunder shall be applied by the Agent to payment of the
Guaranteed Obligations in the following order unless a court of competent jurisdiction shall otherwise direct: 

        (a)   FIRST,
to payment of all costs and expenses of the Agent incurred in connection with the collection and enforcement of the Guaranteed Obligations or of any security
interest granted to the Agent in connection with any collateral securing the Guaranteed Obligations; 

        (b)   SECOND,
to payment of that portion of the Guaranteed Obligations constituting accrued and unpaid interest and fees, pro rata among the Lenders and their Affiliates in
accordance with the amount of such accrued and unpaid interest and fees owing to each of them; 

        (c)   THIRD,
to payment of the principal of the Guaranteed Obligations and the net early termination payments and any other Rate Management Obligations then due and unpaid
from the Borrowers to
any of the Lenders or their Affiliates, pro rata among the Lenders and their Affiliates in accordance with the amount of such principal and such net early termination payments and other Rate
Management Obligations then due and unpaid owing to each of them; and 

        (d)   FOURTH,
to payment of any Guaranteed Obligations (other than those listed above) pro rata among those parties to whom such Guaranteed Obligations are due in accordance
with the amounts owing to each of them. 

        SECTION
11. Notices. All notices, requests and other communications to any party hereunder shall be given or made by telecopier or other
writing and telecopied, or mailed or delivered to the intended recipient at its address or telecopier number set forth on the signature pages hereof or such other address or telecopy number as such
party may hereafter specify for such purpose by notice to the Agent in accordance with the provisions of this Section 11. Except as otherwise provided in this Guaranty, all such communications
shall be deemed to have been duly given when transmitted by telecopier, or personally delivered or, in the case of a mailed notice sent by certified mail return-receipt requested, on the date set
forth on the receipt (provided, that any refusal to accept any such notice 

6

 

shall
be deemed to be notice thereof as of the time of any such refusal), in each case given or addressed as aforesaid. 

        SECTION
12. No Waivers. No failure or delay by the Agent or any Lenders in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and
remedies provided in this Guaranty, the Credit Agreement, any Note, any Rate Management Transaction and the other Loan Documents shall be cumulative and not exclusive of any rights or remedies
provided by law. 

        SECTION
13. No Duty to Advise. Each of the Subsidiary Guarantors assumes all responsibility for being and keeping itself informed of each
Principal's financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that each of
the Subsidiary Guarantors assumes and incurs under this Guaranty, and agrees that neither the Agent nor any Lender has any duty to advise any of the Subsidiary Guarantors of information known to it
regarding those circumstances or risks. 

        SECTION
14. Successors and Assigns. This Guaranty is for the benefit of the Agent and the Lenders and their respective successors and
permitted assigns and in the event of an assignment of any amounts payable under the Credit Agreement, any Note, any Rate Management Transaction, or the other Loan Documents, the rights hereunder, to
the extent applicable to the indebtedness so assigned, shall be transferred with such indebtedness. This Guaranty shall be binding upon each of the Subsidiary Guarantors and their respective
successors and permitted assigns. 

        SECTION
15. Changes in Writing. Neither this Guaranty nor any provision hereof may be changed, waived, discharged or terminated orally,
but only in writing signed by each of the Subsidiary Guarantors and the Agent with the consent of the Required Lenders. 

        SECTION
16. Costs of Enforcement. Each of the Subsidiary Guarantors agrees to pay all costs and expenses including, without limitation,
all court costs and attorneys' fees and expenses paid or incurred by the Agent or any Lender or any Affiliate of any Lender in endeavoring to collect all or any part of the Guaranteed Obligations
from, or in prosecuting any action against, any Principal, the Subsidiary Guarantors or any other guarantor of all or any part of the Guaranteed Obligations. 

        SECTION
17. GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. EACH OF THE SUBSIDIARY GUARANTORS HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS
AND OF ANY TEXAS STATE COURT SITTING IN DALLAS, TEXAS AND FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS GUARANTY (INCLUDING, WITHOUT LIMITATION, ANY OF THE OTHER LOAN
DOCUMENTS) OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE SUBSIDIARY GUARANTORS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH ANY OF THEM MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE
SUBSIDIARY GUARANTORS, THE AGENT AND EACH LENDER ACCEPTING THIS GUARANTY, HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

        SECTION
18. Taxes. Etc. All payments required to be made by any of the Subsidiary Guarantors hereunder shall be made without setoff or
counterclaim and free and clear of and without deduction or 

7

 

withholding
for or on account of, any present or future taxes, levies, imposts, duties or other charges of whatsoever nature imposed by any government or any political or taxing authority thereof (but
excluding income and franchise taxes), provided, however, that if any of the Subsidiary Guarantors is required by law to make such deduction or withholding, such Subsidiary Guarantor shall forthwith
(i) pay to the Agent or any Lender, as applicable, such additional amount as results in the net amount received by the Agent or any Lender, as applicable, equaling the full amount which would
have been received by the Agent or any Lender, as applicable, had no such deduction or withholding been made, (ii) pay the full amount deducted to the relevant authority in accordance with
applicable law, and (iii) furnish to the Agent or any Lender, as applicable, certified copies of official receipts evidencing payment of such withholding taxes within 30 days after such
payment is made. 

        SECTION
19. Setoff. Without limiting the rights of the Agent or the Lenders under applicable law, if all or any part of the Guaranteed
Obligations is then due, whether pursuant to the occurrence of a Default or Event of Default or otherwise, then the Guarantor authorizes the Agent and the Lenders to apply any sums standing to the
credit of the Guarantor with the Agent or any Lender or any Lending Installation of the Agent or any Lender toward the payment of the Guaranteed Obligations. 

        SECTION
20. Grant of Security Interest in Operating Accounts. Each Subsidiary Guarantor hereby grants a security interest to Lenders in
and to their Operating Accounts and all checks, drafts and other items now or hereafter received by any Lender for deposit therein. 

        SECTION
21. Amendment and Restatement. This Guaranty amends, restates and supercedes in its entirety the Original Guaranties;  provided however, that no novation of
the Original Guaranties shall be effected hereby or thereby, and all of the terms and provisions of the Original
Guaranties shall continue to apply for the period prior to the date hereof and the Guaranteed Obligations and Rate Management Obligations described herein shall hereafter be subject to the terms of
this Guaranty. 

SIGNATURE PAGES FOLLOW

8

 

        IN
WITNESS WHEREOF, each of the Subsidiary Guarantors has caused this Guaranty to be duly executed, under seal, by its authorized officer as of the day and year first above written. 

	 	 	SUBSIDIARY GUARANTORS:
	

 	
 	
TAURUS ACQUISITION, INC.

a Texas corporation
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      
 Name: J. Douglas Ramsey

Title: Vice President

	

 	
 	
EXCO INVESTMENT I, LLC,

a Delaware limited liability company
	

 	
 	

By:	
 	

EXCO Resources, Inc.,

its sole member
	

 	
 	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      
 Name: J. Douglas Ramsey

Title: Vice President and

          Chief Financial Officer

9

 

	 	 	EXCO INVESTMENT II, LLC,

a Delaware limited liability company
	

 	
 	

By:	
 	

EXCO Resources, Inc.,

its sole member
	

 	
 	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      
 Name: J. Douglas Ramsey

Title: Vice President and

          Chief Financial Officer

          c/o EXCO RESOURCES, INC.

          12377 Merit Drive, Suite 1700

          Dallas, Texas 75251

          Facsimile No. 214/368/2087

          Attn: Douglas H. Miller

                    Chief Executive Officer

          and

          Attn: J. Douglas Ramsey,

                    Chief Financial Officer

10

QuickLinks

Exhibit 10.20

EXECUTION COPY

AMENDED AND RESTATED SUBSIDIARY GUARANTY

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