Document:

Exhibit 10.1

 

	
  SALE
  OF GOVERNMENT PROPERTY

  AMENDMENT OF INVITATION FOR BIDS/MODIFICATION OF CONTRACT

  
	
  1.   AMENDMENT TO INVITATION FOR BIDS NO.:

  	
    2.   EFFECTIVE DATE

  	
    PAGE 1 OF 8 PAGES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL AGREEMENT NO.: 1

  	
  02/04/09

  	
   

  
	
  3.   ISSUED BY

  	
    NAME AND ADDRESS WHERE BIDS ARE RECEIVED

  
	
   

  	
   

  
	
  DEFENSE REUTILIZATION AND MARKETING SERVICE

  INTERNATIONAL SALES OFFICE, ATTN:DRMS-J362

  74 N WASHINGTON STREET

  BATTLE CREEK MI 49017-3092

  	
    DEFENSE
  REUTILIZATION AND MARKETING SERVICE

    INTERNATIONAL
  SALES OFFICE, ATTN:DRMS.J362

    74
  N WASHINGTON STREET

    BATTLE
  CREEK MI 49017-3092

  
	
   

  	
   

  
	
  o AMENDMENT OF
  INVITATION FOR BIDS NO.

  (See Item 6)

  	
    DATED

  	
    x
  MODIFICATION OF CONTRACT NO.

        (See
  Item 8)

    08-0001-0001

  	
    DATE

       07/31/08

  
	
   

  	
   

  	
   

  	
   

  
	
  6.                          THIS
  BLOCK APPLIES ONLY TO AMENDMENTS OF INVITATIONS FOR BIDS

  The above numbered invitation for bids is amended as set forth in
  Item 9. Bidders must acknowledge receipt of this amendment unless indicated
  otherwise in Item 11 prior to the hour and date specified in the invitation
  for bids, or as amended, by one of the following methods:

   

  (a)   By
  signing and returning          copies
  of this amendment;

  (b)   By acknowledging receipt
  of this amendment on each copy of the bid submitted; or

  (c)   By separate letter or telegram
  which includes a reference to the invitation for bids and amendment number

  FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE ISSUING OFFICE
  PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR BID. If
  by virtue of this amendment you desire to change a bid already submitted,
  such change may be made by telegram or letter, provided such telegram or letter
  makes reference to the invitation for bids and this amendment, and is
  received prior to the opening hour and date specified

  
	
   

  
	
  7.     ACCOUNTING
  AND APPROPRIATION DATA (If required)

  
	
  8.     THIS
  APPLIES ONLY TO MODIFICATION OF CONTRACTS

  This Supplemental Agreement is entered into
  pursuant to authority of Mutual Agreement

  
	
   

  
	
  9.    DESCRIPTION OF AMENDMENT/MODIFICATION (Except as provided below all terms and conditions of the document
  referenced in Item 5 remain in full force and effect)

  Whereas
  Contract 08-0001-0001 was entered into on July 31, 2008 by and between the
  United States of America, hereinafter referred to as the GOVERNMENT, and
  LIQUIDITY SERVICES, INCORPORATED, hereinafter referred to as the CONTRACTOR,
  and whereas the contract involved property as described in Invitation For Bid
  08-0001:

  
	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE HOUR AND DATE FOR RECEIPT OF BIDS o IS NOT EXTENDED, o IS EXTENDED UNTIL             O’CLOCK

  
	
  (LOCAL
  TIME)                DATE

  	
   

  
	
  10. BIDDER/PURCHASER NAME AND ADDRESS (Include
  ZIP Code) 

   

  LIQUIDITY SERVICES, INCORPORATED

  1920 L Street NW, 6th Floor

  Washington, DC 20036

  	
    11.
  o BIDDER IS NOT REQUIRED TO SIGN THIS DOCUMENT

         x PURCHASE IS REQUIRED TO SIGN THIS
  DOCUMENT AND RETURN ORIGINAL AND 0 COPIES TO THE ISSUING OFFICE

  
	
   

  	
   

  
	
  12. SIGNATURE FOR BIDDER/PURCHASER

   

  BY   

  (SIGNATURE OF PERSON AUTHORIZED TO SIGN)

  	
    15. UNITED
  STATES OF AMERICA

   

   

    BY       

    (SIGNATURE OF CONTRACTING
  OFFICER )

  
	
  13. NAME & TITLE OF SIGNER (Type or print)

  WILLIAM P. ANGRICK, III CEO

  	
    14. DATE   SIGNED

    02/4/09

  	
    16. NAME OF
  CONTRACTING OFFICER 

    (Type or print)

    NEIL WATTERS

  	
    17. DATE   SIGNED

    02/4/09

  
	
  GPO: 1970 OF—390–461 (40-X)

  	
  STANDARD FORM 114D

  JAN.
  1970 EDITION

  GENERAL
  SERVICES ADMINISTRATION

  FPMR
  (41 CFR) 101-45.3

  114-501

  
									

 

 

WHEREAS,
Contract 08-0001-0001, General Statement of
Contract, sixteenth paragraph, states: “The Contractor is required
to participate in the Government’s Federal Asset Sales (eFAS) Program whereby
the Contractor agrees to integrate all sales being conducted by the Contractor
to the website, GovSales.gov, a Real and Personal Property Portal that
facilitates the sale for all Government Agencies. Required quarterly reports
reflecting Contractor sales performance must be provided to the GSA GovSales
Planning Office.”

 

WHEREAS,
Contract 08-0001-0001, Article Nine, Section 6
states: “Federal Asset Sales
(FAS) Requirements – Contractor is required to transmit all active
sales information for each property to the eFAS/GovSales.gov portal using one
of the following methods:

 

·                  Property Listings in CSV format transmitted
via SFTP

·                  Property Listings in XML format transmitted
via web service/SOAP

 

On
a quarterly basis, the Contractor is required to provide the following post
sales data to the GovSales Planning Office:

 

·                  Total Number of Assets Sold – Assets sold
equals number of individual assets sold not number of lots sold

·                  Total Number of Assets Posted on GovSales.gov
Portal

·                  Gross Revenue Received – Revenue equals sales
proceeds

·                  Percentage of Personal Property Assets Sold
Equal to Greater than Market Value - This metric only applies to FSG 14
(Aircraft); FSG 19 (Boats); FSG 23 (Motor Vehicles including cars, trucks,
buses, and motorcycles; and FSG 2420 (Wheeled Tractors)

·                  Cycle Time – Time that an asset leaves the
RTD process through payment

·                  Total Net Sales Revenue – Proceeds minus
costs

·                  Implementation Guide Provided”

 

WHEREAS
DRMS Form 1427 (Notice of Award, Statement,
and Release Document) reflects that the Up-Front Property Payment
(Bid Percentage) is 2.2577%.

 

WHEREAS
Contract 08-0001-0001, Item Description, Item 1,
third paragraph, first sentence, states: “The Government will decide
items to be sold to the Contractor regardless of Federal Supply Class (FSC),
location, or demilitarization code.”

 

WHEREAS
Contract 08-0001-0001, Article Six, Section 1(C) CONTRACTOR’S
RIGHT TO NON-DELIVERY ORDER ITEMS,  third
sentence states: “The Government will decide items to be sold to the
Contractor regardless of FSC, location, or demilitarization code.”

 

WHEREAS
Contract 08-0001-0001, Item Description, Item 1,
third paragraph, first sentence, states: “The Government guarantees
to issue the Contractor the lesser of either 130,000 line items of property
annually or issue to the Contractor, property with an annual acquisition value
of $600,000,000 under this contract.”

 

2

 

WHEREAS Contract
08-0001-0001, Article 8, Section 3 PROPERTY ASSURANCE CONTRACTOR
DE-INCENTIVES, states:
“De-Incentives will apply to the Contractor with regard to conducting a resale
of items after DRMS has identified it as controlled or DEMIL required and
placed the item on the DNS or DCC List. De-Incentives will apply in that DRMS will
charge the Contractor 50% of the
acquisition value of any item DRMS has identified to the Contractor as not eligible
for sale based on the item commodity or demilitarization code, yet DRMS finds
it for sale on the Contractor’s website.”

 

WHEREAS Contract
08-0001-0001, Article 12, Section 4(B), DRMS VERIFICATION OF
ASSURANCE PROCESS states: “The DRMS Verification Office will conduct daily reviews of the
items that the Contractor is offering for sale to ensure items appearing on the
DNS List or DCC List are not being sold. De-Incentives will apply in that DRMS
will charge the Contractor 50% of the acquisition value of any item DRMS has
identified to the Contractor as not eligible for sale based on the item
commodity or demilitarization code, yet DRMS finds it for sale on the
Contractor’s website.”

 

WHEREAS
Contract 08-0001-0001, Article 12, Section 5,
CONTRACTOR WEB BASED APPLICATION, first sentence states: “Contractor
must develop a web-based application for use on this contract with regard to reviewing property for  accurate coding and sales eligibility.”

 

WHEREAS
General Statements of Contract, fifth
paragraph, states: “The successful bidder commits to purchase
property issued under this contract on a Delivery Order for  a thirty-six (36)
month performance period commencing from the date of submission of the initial Delivery Order to the Contractor.
DRMS may unilaterally exercise options to extend the performance period for up
to an additional twenty-four (24) months via two twelve month options, based on
Government requirements.”

 

WHEREAS
Contract 08-0001-0001, Article 4, Section 1,
PERFORMANCE PERIOD, first sentence states: “Subject to the early
cancellation option provisions and the Termination for Convenience of the
Government provisions, the Government shall provide property for a thirty-six
(36) month period from the date of the initial delivery order to Contractor.”

 

WHEREAS
General Statements of Contract, fourth
paragraph, last sentence states: “Recycling Control Point (RCP) DLA
Depot property will be issued to the Contractor at one of four DRMS Controlled
Property Centers (CPCs) currently located at Columbus, OH; Norfolk, VA;
Huntsville, AL; and Stockton, CA.”

 

NOW
THEREFORE, it has been determined that the
following actions will serve the best interest of the Government and
Contractor:

 

Contract 08-0001-0001, General Statement of Contract,
sixteenth paragraph, is changed to read,
“The Contractor is
required to participate in the Government’s Federal Asset Sales (eFAS) Program whenever acting as a sales
broker when reselling non-DRMS asset Government property,  whereby the Contractor agrees to
integrate all sales being conducted by the Contractor to the website,
GovSales.gov, a Real and
Personal Property Portal that facilitates the sale for all Government Agencies.

 

3

 

Required
quarterly reports reflecting Contractor sales performance must be provided to
the Sales Contracting Officer.”

 

Contract
08-0001-0001, Article Nine, Section 6, is changed to read, “Federal
Asset Sales (FAS) Requirements – Contractor is required to transmit
all active sales information for each non-DRMS
asset Government  property
resold whenever acting as a
sales broker for the Government
to the eFAS/GovSales.gov portal using one of the following methods:

 

·                  Property Listings in CSV format transmitted
via SFTP

·                  Property Listings in XML format transmitted
via web service/SOAP

 

On
a quarterly basis, the Contractor is required to provide the following post
sales data to the Sales
Contracting Officer:

 

·                  Total Number of Assets Sold – Assets sold
equals number of individual assets sold not number of lots sold

·                  Total Number of Assets Posted on GovSales.gov
Portal

·                  Gross Revenue Received – Revenue equals sales
proceeds

·                  Percentage of Personal Property Assets Sold
Equal to Greater than Market Value -

This
metric only applies to FSG 14 (Aircraft); FSG 19 (Boats); FSG 23 (Motor
Vehicles including cars, trucks, buses, and motorcycles; and FSG 2420 (Wheeled
Tractors)

·                  Cycle Time – Time that an asset leaves the
RTD process through payment

·                  Total Net Sales Revenue – Proceeds minus
costs

·                  Implementation Guide Provided”

 

DRMS Form 1427
(Notice of Award, Statement, and Release Document) is changed to reflect that the  Up-Front Property Payment (Bid Percentage) is  0.8000%.

 

Contract 08-0001-0001, Item Description, Item 1, third paragraph, first
sentence is changed
to read: “The Government will decide items to be sold to the Contractor
regardless of Federal Supply Class (FSC), location, demilitarization code.
or property condition.  The Contractor has the
contractual obligation to purchase cell property issued on a delivery order.
However, the following FSCs will not be issued under this contract unless
mutually agreed upon by both DRMS and the Contractor:

 

7025 – ADP Input/Output and Storage Devices

7010 – ADPE System Configuration

5805 – Telephone and Telegraph Equipment

5831 – Intercommunication and Public Address Systems,
Airborne”

 

Contract
08-0001-0001, Article Six, Section 1(C) CONTRACTOR’S RIGHT TO
NON-DELIVERY ORDER ITEMS, first sentence is changed to read: “The Government will
decide items to be sold to the Contractor regardless of FSC, location,
demilitarization code, or
property condition. The Contractor has the contractual obligation to purchase
all property issued on a delivery order.

 

4

 

However, the following FSCs
will not be issued under this contract unless mutually agreed upon by both DRMS
and the Contractor:

 

7025 – ADP Input/Output and Storage Devices

7010 –ADPE System Configuration

5805 – Telephone and Telegraph Equipment

5831 – Intercommunication and Public Address
Systems, Airborne”

 

Contract
08-0001-0001, Item Description, Item 1, third paragraph, first sentence, is changed to read: “Based on the deletion of FSCs 7025, 7010, 5805, and 5831
from this contract, the Government
guarantees to issue the Contractor the lesser of either 124,000 line  items of
property annually or issue to the Contractor property with an annual
acquisition value of $570,000,000  under this contract.”

 

Contract
08-0001-0001, Article 8, Section 3 PROPERTY ASSURANCE CONTRACTOR DE-INCENTIVES, is changed to add the following sentences at
the end of the existing section: “De-Incentives
applicable to property issued from a Controlled Property Center (CPC), or any Recycling
Control Point (RCP) property issued from a DLA Depot, are waived until further
notice by the Government. The Government will provide a five working day notice
to Contractor reinstating the de-incentives for the property cited above. The
de-incentives listed in this section continue to apply to all other property
under this contract.”

 

Contract
08-0001-0001, Article 12, Section 4(B), DRMS VERIFICATION OF
ASSURANCE PROCESS is
changed to add the following sentences at the end of the existing section: “De-Incentives applicable to
property issued from a Controlled Property Center (CPC) or any Recycling
Control Point (RCP) property issued from a DLA Depot, are waived until further
notice by the Government. The Government will provide a five working day notice
to Contractor reinstating the de-incentives for the property cited above. The
de-incentives listed in this section continue to apply to all other property
under this contract.”

 

Contract
08-0001-0001, Article 12, Section 5  CONTRACTOR WEB BASED APPLICATION,
first sentence is changed to
read: “Contractor must develop a web-based application for use on this contract
with regard to reviewing property for accurate coding and sales eligibility. The Government agrees that
reasonable costs for Government requested enhancements to the web-based
application throughout the term of the contract will be compensated to the
Contractor by the Government throughout the term of the contract. Contractor is
required to submit the costs associated with the Government requested
enhancement and have written approval for cost compensation from the SCO prior to
completing the enhancement.”

 

Contract
08-0001-0001, General Statements of Contract, fifth paragraph, is changed to read: “The successful bidder
commits to purchase property issued under this contract on a Delivery Order for
a thirty-six (36) month performance period commencing with Delivery Order 5. DRMS
may unilaterally exercise options
to extend the performance period for up to an additional twenty-four
(24) months via two twelve month
options, based on Government requirements.”

 

5

 

Contract 08-0001-0001,
Article 4, Section 1, PERFORMANCE PERIOD, first sentence is
changed to read: “Subject to the early cancellation option provisions and the
Termination for Convenience of the Government provisions, the Government shall
provide property for a thirty-six (36) month period from the date of Delivery Order 5.”

 

General Statements of Contract,
fourth paragraph, last sentence is changed to read:
“Recycling Control Point (RCP) DLA Depot property will be either issued to the
Contractor at one of four DRMS Controlled Property Centers (CPCs) currently
located at Columbus, OH; Norfolk, VA; Huntsville, AL; and Stockton, CA.,  or be shipped by the Government at
Government expense to Contractor’s warehouses located at Columbus, OH and Oklahoma
City, OK, at the Government’s discretion.”

 

The Government
and the Contractor agree to stay (tolling any applicable statutes of limitation
or similar equitable periods to the fullest extent possible) all known and
unknown, asserted or  unasserted claims existing as of the date of this contract
modification and related to Contract Number 99-0001-0002 and Contract Number
08-0001-0001 (the “Claims”) for a period of 18 months commencing on the date
this modification is signed (the “18 month period”). If Contract Number
08-0001-0001 remains in effect at the end of the 18 month period, then the
Contractor and its affiliates agree to waive and release fully and finally the
Claims cited above against the Government, except that nothing in this release
shall waive or release any claims of the Contractor or its affiliates against
the Government for non-payment under the payment provisions of Contract Number
99-0001-0002 for work performed, services provided, or costs incurred or for
costs and damages (if any) associated with Kormendi/Gardner Partners v. Surplus
Acquisition Venture, LLC and Government Liquidation, LLC presently pending in
the United States District Court for the District of Columbia. If Contract
No. 08-0001-0001 remains in effect at the end of the 18 month period then
the Government agrees to waive the Claims cited above regardless of whether the
Claims are against the Contractor or its affiliates. The Contractor and
Government further agree that this Modification constitutes complete and final
satisfaction for both parties arising from the changes to Contract Number
08-0001-0001 as set forth herein.

 

The Government
will monitor the property pool delivered under Contract Number 08-0001-0001
such that the acquisition value of the property delivered in the FSCs listed
below, as a group, does not exceed 60% of the acquisition value of the total
property delivered over the term of this contract. If the acquisition value of
the property delivered in the FSCs listed below exceeds 60% of the acquisition
value of the total property delivered under the contract on a trailing 12 month
basis (for the purposes in this modification: trailing 12 months represents 12
consecutive months previous to any Delivery Order issued by the Government
applicable on the 13th month of performance
and thereafter), the Government may choose to continue delivering the FSCs
listed below and waive the 0.8% upfront bid price, for the FSCs listed below
starting with the first Delivery Order of the 13th month of this contract as modified; or the
Government may choose not to deliver some or all of the FSCs listed below until
the acquisition value of the property, in the FSCs listed below, has dropped
below 60% of the acquisition value of the total property delivered under the
contract on a trailing 12 month basis. At  any time during contract
performance, the Government may choose to exclude and then reinclude property
from the FSCs listed below, or issue such property with or without all or a
portion of the 0.8% upfront bid price. Property from the FSCs listed below, if
delivered without the full upfront bid

 

6

 

price, will be excluded from calculations of the percent of
property delivered for the purposes of meeting the acquisition value ratio
calculated above, and has no impact on the Government’s minimum delivery
requirement. For purposes of this paragraph, the Government’s Delivery Orders
and adjustments therein represent the official record.

 

	
  FSC

  	
   

  	
  Description

  
	
  1025

  	
   

  	
  GUNS, OVER
  150 MM THROUGH 200

  
	
  1075

  	
   

  	
  DEGAUSSING
  AND MINE SWEEPING EQUIPMENT

  
	
  1080

  	
   

  	
  CAMOUFLAGE
  AND DECEPTION EQUIPMENT

  
	
  1240

  	
   

  	
  OPTICAL
  SIGHTING AND RANGING EQUIPMENT

  
	
  1660

  	
   

  	
  AIRCRAFT AIR
  CONDITIONING, HEATING AND PRESSURIZING EQUIPMENT

  
	
  1670

  	
   

  	
  PARACHUTES;
  AERIAL PICK UP, DELIVERY, RECOVERY SYSTEMS

  
	
  1680

  	
   

  	
  MISCELLANEOUS
  AIRCRAFT ACCESSORIES AND COMPONENTS

  
	
  2040

  	
   

  	
  MARINE
  HARDWARE AND HULL ITEMS

  
	
  2825

  	
   

  	
  STEAM
  TURBINES AND COMPONENTS

  
	
  2920

  	
   

  	
  ENGINE
  ELECTRICAL SYSTEM COMPONENTS, NONAIRCRAFT

  
	
  2930

  	
   

  	
  ENGINE
  COOLING SYSTEM COMPONENTS, NONAIRCRAFT

  
	
  2935

  	
   

  	
  ENGINE
  COOLING SYSTEM COMPONENTS, AIRCRAFT PRIME MOVING

  
	
  3010

  	
   

  	
  TORQUE
  CONVERTERS AND SPEED CHANGERS

  
	
  3020

  	
   

  	
  GEARS,
  PULLEYS, SPROCKETS AND TRANSMISSION CHAIN

  
	
  3040

  	
   

  	
  MISCELLANEOUS
  POWER TRANSMISSION EQUIPMENT

  
	
  3120

  	
   

  	
  BEARINGS,
  PLAIN, UNMOUNTED

  
	
  3408

  	
   

  	
  MACHINING
  CENTERS AND WAY-TYPE MACHINES

  
	
  3655

  	
   

  	
  GAS
  GENERATING AND DISPENSING SYSTEMS, FIXED OR MOBILE

  
	
  4120

  	
   

  	
  AIR
  CONDITIONING EQUIPMENT

  
	
  4140

  	
   

  	
  FANS, AIR
  CIRCULATORS AND BLOWER EQUIPMENT

  
	
  4240

  	
   

  	
  SAFETY AND
  RESCUE EQUIPMENT

  
	
  4330

  	
   

  	
  CENTRIFUGALS,
  SEPARATORS AND PRESSURE AND VACUUM FILTERS

  
	
  4410

  	
   

  	
  INDUSTRIAL
  BOILERS

  
	
  4440

  	
   

  	
  DRIERS,
  DEHYDRATORS AND ANHYDRATORS

  
	
  4510

  	
   

  	
  PLUMBING
  FIXTURES AND ACCESSORIES

  
	
  4610

  	
   

  	
  WATER
  PURIFICATION EQUIPMENT

  
	
  4630

  	
   

  	
  SEWAGE
  TREATMENT EQUIPMENT

  
	
  4730

  	
   

  	
  HOSE, PIPE,
  TUBE, LUBRICATION AND RAILING FITTINGS

  
	
  4810

  	
   

  	
  VALVES,
  POWERED

  
	
  4920

  	
   

  	
  AIRCRAFT
  MAINTENANCE AND REPAIR SHOP SPECIALIZED EQUIPMENT

  
	
  5305

  	
   

  	
  SCREWS

  
	
  5306

  	
   

  	
  BOLTS

  
	
  5307

  	
   

  	
  STUDS

  
	
  5310

  	
   

  	
  NUTS AND
  WASHERS

  
	
  5315

  	
   

  	
  NAILS,
  MACHINE KEYS AND PINS

  
	
  5320

  	
   

  	
  RIVETS

  
	
  5325

  	
   

  	
  FASTENING
  DEVICES

  
	
  5330

  	
   

  	
  PACKING AND
  GASKET MATERIALS

  
	
  5340

  	
   

  	
  HARDWARE,
  COMMERCIAL

  
	
  5355

  	
   

  	
  KNOBS AND
  POINTERS

  
	
  5360

  	
   

  	
  COIL, FLAT,
  LEAF AND WIRE SPRINGS

  
	
  5365

  	
   

  	
  BUSHINGS,
  RINGS, SHIMS AND SPACERS

  
	
  5411

  	
   

  	
  RIGID WALL
  SHELTERS

  
	
  5820

  	
   

  	
  RADIO AND
  TELEVISION COMMUNICATION EQUIPMENT, EXCEPT AIRBORNE

  
	
  5840

  	
   

  	
  RADAR
  EQUIPMENT, EXCEPT AIRBORNE

  
	
  5841

  	
   

  	
  RADAR
  EQUIPMENT, AIRBORNE

  
	
  5895

  	
   

  	
  MISCELLANEOUS
  COMMUNICATION EQUIPMENT

  
	
  5905

  	
   

  	
  RESISTORS

  

 

7

 

	
  5910

  	
   

  	
  CAPACITORS

  
	
  5920

  	
   

  	
  FUSES,
  ARRESTORS, ABSORBERS, AND PROTECTORS

  
	
  5925

  	
   

  	
  CIRCUIT
  BREAKERS

  
	
  5930

  	
   

  	
  SWITCHES

  
	
  5940

  	
   

  	
  LUGS,
  TERMINALS AND TERMINAL STRIPS

  
	
  5945

  	
   

  	
  RELAYS AND
  SOLENOIDS

  
	
  5950

  	
   

  	
  COILS AND
  TRANSFORMERS

  
	
  5961

  	
   

  	
  SEMICONDUCTOR
  DEVICES AND ASSOCIATED HARDWARE

  
	
  5975

  	
   

  	
  ELECTRICAL
  HARDWARE AND SUPPLIES

  
	
  5977

  	
   

  	
  ELECTRICAL
  CONTACT BRUSHES AND ELECTRODES

  
	
  5980

  	
   

  	
  OPTOELECTRONIC
  DEVICES AND ASSOCIATED HARDWARE

  
	
  5985

  	
   

  	
  ANTENNAS,
  WAVEGUIDE AND RELATED EQUIPMENT

  
	
  5998

  	
   

  	
  ELECTRICAL
  AND ELECTRONIC ASSEMBLIES; BOARDS, CARDS AND ASSOCIATED HARDWARE

  
	
  5999

  	
   

  	
  MISCELLANEOUS
  ELECTRICAL AND ELECTRONIC COMPONENTS

  
	
  6020

  	
   

  	
  FIBER OPTIC
  CABLE ASSEMBLIES AND HARNESSES

  
	
  6030

  	
   

  	
  FIBER OPTIC
  DEVICES

  
	
  6105

  	
   

  	
  MOTORS,
  ELECTRICAL

  
	
  6110

  	
   

  	
  ELECTRICAL
  CONTROL EQUIPMENT

  
	
  6130

  	
   

  	
  CONVERTERS,
  ELECTRICAL, NONROTATING

  
	
  6150

  	
   

  	
  MISCELLANEOUS
  ELECTRIC POWER AND DISTRIBUTION EQUIPMENT

  
	
  6160

  	
   

  	
  MISCELLANEOUS
  BATTERY RETAINING FIXTURES AND LINERS

  
	
  6210

  	
   

  	
  INDOOR AND
  OUTDOOR ELECTRIC LIGHTING FIXTURES

  
	
  6230

  	
   

  	
  ELECTRIC
  PORTABLE AND HAND LIGHTING EQUIPMENT

  
	
  6320

  	
   

  	
  SHIPBOARD
  ALARM AND SIGNAL SYSTEMS

  
	
  6340

  	
   

  	
  AIRCRAFT
  ALARM AND SIGNAL SYSTEMS

  
	
  6350

  	
   

  	
  MISCELLANEOUS
  ALARM, SIGNAL AND SECURITY DETECTION SYSTEMS

  
	
  6510

  	
   

  	
  SURGICAL
  DRESSING MATERIALS

  
	
  6532

  	
   

  	
  HOSPITAL AND
  SURGICAL CLOTHING AND RELATED SPECIAL PUPOSES ITEMS

  
	
  6605

  	
   

  	
  NAVIGATIONAL
  INSTRUMENTS

  
	
  6620

  	
   

  	
  ENGINE
  INSTRUMENTS

  
	
  6625

  	
   

  	
  ELECTRICAL
  AND ELECTRONIC PROPERTIES MEASURING AND TESTING INSTRUMENTS

  
	
  6660

  	
   

  	
  METEOROLOGICAL
  INSTRUMENTS AND APPARATUS

  
	
  6675

  	
   

  	
  DRAFTING,
  SURVEYING AND MAPPING INSTRUMENTS

  
	
  6680

  	
   

  	
  LIQUID AND
  GAS FLOW, LIQUID LEVEL AND MECHANICAL MOTION MEASURING INSTRUMENTS

  
	
  6685

  	
   

  	
  PRESSURE,
  TEMPERATURE AND HUMIDITY MEASURING AND CONTROLLING INSTRUMENTS

  
	
  6695

  	
   

  	
  COMBINATION
  AND MISCELLANEOUS INSTRUMENTS

  
	
  6740

  	
   

  	
  PHOTOGRAPHIC
  DEVELOPING AND FINISHING EQUIPMENT

  
	
  7021

  	
   

  	
  ADP CENTRAL
  PROCESSING UNIT (CPU, COMPUTER), DIGITAL

  
	
  7035

  	
   

  	
  ADP SUPPORT
  EQUIPMENT

  
	
  7045

  	
   

  	
  ADP SUPPLIES

  
	
  7240

  	
   

  	
  HOUSEHOLD
  AND COMMERCIAL UTILITY CONTAINERS

  
	
  8410

  	
   

  	
  OUTERWEAR,
  WOMEN’S

  
	
  8440

  	
   

  	
  HOSIERY,
  HANDWEAR AND CLOTHING ACCESSORIES, MEN’S

  

 

////////////////////////////////////NOTHING
FOLLOWS////////////////////////////////////

 

8Exhibit
10.1

 

EXECUTION
VERSION

 

THIRD
AMENDMENT TO 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIRD AMENDMENT TO SECOND
AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter referred to as the “Amendment”)
is dated as of February 4, 2009, by and among EXCO RESOURCES, INC. (“Borrower”),
CERTAIN SUBSIDIARIES OF BORROWER, as Guarantors (the “Guarantors”), the
LENDERS party hereto (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (“Administrative Agent”).  Unless the context otherwise requires or
unless otherwise expressly defined herein, capitalized terms used but not
defined in this Amendment have the meanings assigned to such terms in the
Credit Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS, Borrower, Guarantors, Administrative Agent
and Lenders have entered into that certain Second Amended and Restated Credit
Agreement dated as of May 2, 2007, as amended by that certain First
Amendment to Second Amended and Restated Credit Agreement dated as of
February 20, 2008, and as further amended by that certain Second Amendment
to Second Amended and Restated Credit Agreement dated as of July 14, 2008
(as the same may be further amended, restated, supplemented or otherwise
modified from time to time, the “Credit
Agreement”); and

 

WHEREAS, Administrative Agent, Lenders, Borrower and
Guarantors desire to amend the Credit Agreement as provided herein upon the
terms and conditions set forth herein.

 

NOW,
THEREFORE, for and in
consideration of the mutual covenants and agreements herein contained and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, Borrower, Guarantors, Administrative Agent
and the Lenders hereby agree as follows:

 

SECTION 1.  Amendments to Credit
Agreement.  Subject to the satisfaction or waiver in
writing of each condition precedent set forth in Section 2 hereof,
and in reliance on the representations, warranties, covenants and agreements
contained in this Amendment, the Credit Agreement shall be amended in the manner
provided in this Section 1.

 

1.1          Additional Definitions. The following definitions shall be and they
hereby are added to Section 1.01 of the Credit Agreement in
appropriate alphabetical order:

 

“Cash Collateral Account” has the meaning assigned to such term
in Section 2.07(j).

 

“LMIR” means, for any day, a rate per annum equal to the rate
for one month U.S. dollar deposits as reported on Reuters BBA Libor Rates
Page 3750 as of 11:00 a.m., London time, on such day, or if such day
is not a Business Day, then the immediately preceding Business Day (or if not
so reported, then any successor to or substitute for such service, providing
rate quotations comparable to those currently provided on such page of
such service, as determined by the

 

1

 

Administrative
Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market).

 

“Third Amendment Effective Date” means February 4, 2009.

 

1.2          Amended Definitions.  Section 1.01
of the Credit Agreement shall be and it hereby is amended by amending and
restating the following definitions in their respective entireties to read as
follows:

 

“Alternate Base Rate” means, for any day, a rate per
annum equal to the greatest of (a) the Prime Rate in effect on such day,
(b) the Federal Funds Effective Rate in effect on such day plus one-half
of one percent (1⁄2 of 1%) and (c) the LMIR on such day plus 1.00%.  Any change in the Alternate Base Rate due to
a change in the Prime Rate, the Federal Funds Effective Rate or the LMIR shall
be effective from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the LMIR, respectively.

 

“Business Day” means any day that is not a Saturday, Sunday or
other day on which commercial banks in New York, New York or Dallas, Texas are
authorized or required by law to remain closed; provided that, when used
in connection with a Eurodollar Loan or to determine LMIR, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market.

 

“Defaulting Lender” means any Lender, as reasonably determined
by the Administrative Agent, that has (a) failed to fund any portion of
the Loans, participations in LC Disbursements or participations in Swingline
Loans required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) notified the Borrower, the
Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender in
writing that it does not intend to comply with any of its funding obligations
under this Agreement or has made a public statement to the effect that it does
not intend to comply with its funding obligations under this Agreement,
(c) otherwise failed to pay over to the Administrative Agent or any other
Lender any other amount required to be paid by it hereunder within one Business
Day of the date when due, unless the subject of a good faith dispute, or
(d) (i) become or is insolvent or has a parent company that has
become or is insolvent or (ii) become the subject of a bankruptcy or
insolvency proceeding, or has had a receiver, conservator, trustee or custodian
appointed for it, or has taken any action in furtherance of, or indicating its
consent to, approval of or acquiescence in any such proceeding or appointment
or has a parent company that has become the subject of a bankruptcy or
insolvency proceeding, or has had a receiver, conservator, trustee or custodian
appointed for it, or has taken any action in furtherance of, or indicating its
consent to, approval of or acquiescence in any such proceeding or appointment;
provided that the Administrative Agent shall provide written notice to any
Lender determined by the Administrative Agent to be a Defaulting Lender
hereunder (and 

 

2

 

the
Administrative Agent shall provide a copy of such determination to the
Borrower).

 

“LIBO Rate” means, with respect to any Eurodollar Borrowing for
any Interest Period, the rate appearing on Reuters BBA Libor Rates
Page 3750 (or on any successor or substitute page of such service, or
any successor to or substitute for such service, providing rate quotations
comparable to those currently provided on such page of such service, as
determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two
(2) Business Days prior to the commencement of such Interest Period, as
the rate for dollar deposits with a maturity comparable to such Interest
Period.  In the event that such rate is
not available at such time for any reason, then the “LIBO Rate” with
respect to such Eurodollar Borrowing for such Interest Period shall be the rate
at which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such Interest Period.

 

1.3          Swingline Loans.  Clause (a) of Section 2.06 of the Credit Agreement
shall be and it hereby is amended and restated in its entirety to read as
follows:

 

(a)          Subject to
the terms and conditions set forth herein, the Swingline Lender agrees to make
Swingline Loans to the Borrower from time to time during the Availability
Period, in an aggregate principal amount at any time outstanding that will not
result in (i) the aggregate principal amount of outstanding Swingline
Loans exceeding $10,000,000 or (ii) the Aggregate Credit Exposure
exceeding the Aggregate Commitment, provided that the Swingline Lender shall
not be required to make a Swingline Loan (x) to refinance an outstanding
Swingline Loan or (y) if at the time such Swingline Loan is requested by
the Borrower pursuant to Section 2.06(b), any Lender is a Defaulting Lender.  Within the foregoing limits and subject to
the terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Swingline Loans.

 

1.4          Swingline Loans.  Section 2.06 of
the Credit Agreement shall be and it hereby is amended by adding a new clause
(d) to the end thereof to read as follows:

 

(d)          If any
Swingline Loan is outstanding at the time any Lender is a Defaulting Lender,
upon the written request of the Swingline Lender, the Borrower shall promptly,
and in any event within one (1) Business Day after receipt of such written
request, prepay to the Swingline Lender the then unpaid principal amount of
each Swingline Loan.

 

1.5          Letters of Credit. 
Clause (b) of Section 2.07 of the Credit Agreement
shall be and it hereby is amended by adding the following provision to the end
thereof:

 

3

 

Notwithstanding the foregoing, the Issuing Bank shall not at
any time be obligated to issue, amend, renew or extend any Letter of Credit if
any Lender is at such time a Defaulting Lender hereunder, unless the Borrower
cash collateralizes such Defaulting Lender’s portion of the total LC Exposure
(calculated after giving effect to the issuance, amendment, renewal or
extension of such Letter of Credit) in accordance with the procedures set forth
in Section 2.07(j).

 

1.6          Letters of Credit. 
Clause (j) of Section 2.07 of the Credit Agreement
shall be and it hereby is amended and restated in its entirety to read as
follows:

 

(j)            Cash
Collateralization.

 

(i)           If at any time the
Borrower elects to cash collateralize the LC Exposure of any Defaulting Lender
pursuant to Section 2.07(b), the Borrower shall deposit in an account with
the Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders (the “Cash Collateral Account”), an amount in
cash equal to such Defaulting Lender’s portion of the total LC Exposure at such
time as calculated pursuant to Section 2.07(b) (less any amounts
already on deposit in such Cash Collateral Account representing cash collateral
for any portion of such Defaulting Lender’s portion of the total LC Exposure).

 

(ii)          If any Letter of
Credit is outstanding at the time any Lender is a Defaulting Lender, upon the
written request of the Issuing Bank demanding the deposit of cash collateral
pursuant to this paragraph, the Borrower shall promptly, and in any event
within one (1) Business Day after receipt by the Borrower of written
notice, cash collateralize such Defaulting Lender’s portion of the total LC
Exposure at such time by depositing in the Cash Collateral Account an amount in
cash equal to such Defaulting Lender’s portion of the total LC Exposure (less
any amounts already on deposit in such Cash Collateral Account representing
cash collateral for any portion of such Defaulting Lender’s portion of the
total LC Exposure).

 

(iii)         If any Event of
Default shall occur and be continuing, on the Business Day that the Borrower
receives notice from the Administrative Agent or the Required Lenders (or, if
the maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than sixty-six and two-thirds percent (662/3%)
of the total LC Exposure) demanding the deposit of cash collateral pursuant to
this paragraph, the Borrower shall deposit in the Cash Collateral Account an
amount in cash equal to the total LC Exposure as of such date plus any accrued
and unpaid interest thereon; provided that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon
the occurrence of any Event of Default with respect to the Borrower described
in clause (h) or (i) of Article IX.

 

4

 

(iv)         Deposits in the Cash
Collateral Account made pursuant to the foregoing paragraphs (i), (ii) and
(iii) shall be held by the Administrative Agent as collateral for the
payment and performance of the obligations of the Borrower under this Agreement
and Borrower hereby grants a security interest in such cash and each deposit
account into which such cash is deposited to secure the Obligations.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over the
Cash Collateral Account.  Other than interest at the
rate per annum in effect for accounts of the same type maintained with the
Administrative Agent at such time and any interest earned on the investment of
such deposits, which investments shall be of the type described in clause
(b) of the definition of Permitted Investments and shall be made by the
Administrative Agent in consultation with the Borrower (unless an Event of
Default shall have occurred and be continuing, in which case, such investments
shall be made at the option and sole discretion of the Administrative Agent)
and at the Borrower’s risk and expense, such deposits shall not bear interest. 
Interest or profits, if any, on such investments shall accumulate in
such account.  Moneys in such account
shall be applied by the Administrative Agent to reimburse the Issuing Bank for
LC Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing sixty-six and two-thirds percent (662/3%)
or more of the total LC Exposure), be applied to satisfy other Obligations of
the Borrower under this Agreement.

 

(v)           If the
Borrower is required to provide an amount of cash collateral pursuant to
paragraphs (i), (ii) or (iii) above, such amount (to the extent not
applied as aforesaid) shall be returned to the Borrower within three
(3) Business Days after (x) in the case of cash collateral provided
pursuant to paragraphs (i) or (ii) above, the applicable Defaulting
Lender is no longer a Defaulting Lender and (y) in the case of cash
collateral provided pursuant to paragraph (iii) above, all Events of
Default have been cured or waived.

 

1.7          Fees. 
Clauses
(a) and (b) of Section 2.13 of the Credit Agreement shall
be and it hereby is amended and restated in its entirety to read as follows:

 

(a)          The Borrower agrees
to pay to the Administrative Agent, for the account of each Lender, an unused
commitment fee (the “Unused Commitment Fee”) equivalent to the
Applicable Rate times the daily average of the total Unused Commitments.  Such Unused Commitment Fee shall be
calculated on the basis of a year consisting of 360 days.  The Unused Commitment Fee shall be payable in
arrears on the last day of March, June, September and December of
each year, commencing with the first such date to occur after the Effective
Date, and on the Maturity Date for any period then ending for which the Unused
Commitment Fee shall not have been theretofore paid.  In the event the Aggregate Commitment
terminates on any date other than the last day of March, June, September or
December of any year, the Borrower agrees to pay to the 

 

5

 

Administrative
Agent, for the account of each Lender, on the date of such termination, the
total Unused Commitment Fee due for the period from the last day of the
immediately preceding March, June, September or December, as the case may
be, to the date such termination occurs. 
Notwithstanding anything to the contrary contained herein, for so long
as any Lender is a Defaulting Lender hereunder, the portion of the Unused
Commitment Fee attributable to such Defaulting Lender shall cease to accrue
pursuant to the terms of this Section 2.13(a) and the Borrower shall
have no obligation to pay any Unused Commitment Fee for the account of such
Defaulting Lender for the period of time such Lender is a Defaulting Lender.

 

(b)          The Borrower agrees
to pay (i) to the Administrative Agent for the account of each Lender a
participation fee with respect to its participations in Letters of Credit,
which shall accrue at the same Applicable Rate used to determine the interest
rate applicable to Eurodollar Loans on the average daily amount of such
Lender’s LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender’s
Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue
at the rate or rates per annum separately agreed upon between the Borrower and
the Issuing Bank on the average daily amount of the LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the
period from and including the Effective Date to but excluding the later of the date
of termination of the Aggregate Commitment and the date on which there ceases
to be any LC Exposure, as well as the Issuing Bank’s standard fees with respect
to the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. 
Participation fees and fronting fees accrued through and including the
last day of March, June, September and December of each year shall be
payable on the third Business Day following such last day, commencing on the
first such date to occur after the Effective Date; provided that all
such fees shall be payable on the date on which the Aggregate Commitment
terminates and any such fees accruing after the date on which the Aggregate
Commitment terminates shall be payable on demand.  Any other fees payable to the Issuing Bank
pursuant to this paragraph shall be payable within ten (10) days after
demand.  All participation fees and
fronting fees shall be computed on the basis of a year of 360 days and shall be
payable for the actual number of days elapsed (including the first day but
excluding the last day).  Notwithstanding
anything to the contrary contained herein, for so long as any Lender is a
Defaulting Lender hereunder and, to the extent required, the Borrower has cash
collateralized such Defaulting Lender’s portion of the total LC Exposure
pursuant to Section 2.07(j), the portion of the participation fees
attributable to such Defaulting Lender pursuant to clause (i) of this
Section 2.13(b) shall cease to accrue pursuant to the terms of this
Section 2.13(b) and the Borrower shall have no obligation to pay any
participation fees to the Administrative Agent for the account of such
Defaulting Lender for the period of time such Lender is a Defaulting Lender
and, to the extent required, such Defaulting Lender’s portion 

 

6

 

of the
total LC Exposure is cash collateralized pursuant to Section 2.07(j);
provided, however, that in the event the Borrower has not cash collateralized
any Defaulting Lender’s portion of the total LC Exposure pursuant to, and as
required under, Section 2.07(j), then, without prejudice to any rights or
remedies of the Issuing Bank or any Lender hereunder, all participation fees
accruing during the period of time such Lender is a Defaulting Lender that
otherwise would have been payable for the account of such Defaulting Lender
pursuant to clause (i) of this Section 2.13(b) shall be payable
to the Issuing Bank for the account of the Issuing Bank until such Defaulting
Lender’s LC Exposure is cash collateralized pursuant to, and as required under,
Section 2.07(j).

 

1.8          Financial Covenants; Leverage Ratio.  Clause (b) of Section 7.11
of the Credit Agreement shall be and it hereby is amended and restated in its
entirety to read as follows:

 

(b)          Leverage Ratio.

 

(i)            The Borrower will not permit the ratio, determined as of the end of any
fiscal quarter ending on or after December 31, 2008 and on or before
December 31, 2009, of (A) Consolidated Funded Indebtedness as of the
end of such fiscal quarter to (B) Consolidated EBITDAX for the trailing
four fiscal quarter period ending on such date, to be greater than 4.00 to
1.00.

 

(ii)           The Borrower will not permit the ratio, determined as of the end of the
fiscal quarter ending on March 31, 2010, of (A) Consolidated Funded
Indebtedness as of the end of such fiscal quarter to (B) Consolidated
EBITDAX for the trailing four fiscal quarter period ending on such date, to be
greater than 3.75 to 1.00.

 

(iii)          The Borrower will not permit the ratio, determined as of the end of any
fiscal quarter ending on or after June 30, 2010, of (A) Consolidated
Funded Indebtedness as of the end of such fiscal quarter to
(B) Consolidated EBITDAX for the trailing four fiscal quarter period
ending on such date, to be greater than 3.50 to 1.00.

 

SECTION 2.  Conditions.  The amendments to the Credit Agreement contained in Section 1
of this Amendment shall be effective upon the satisfaction of each of the
conditions set forth in this Section 2.

 

2.1          Execution and Delivery.  Each
Credit Party, the Majority Lenders and the Administrative Agent shall have
executed and delivered this Amendment.

 

2.2          No Default.  No
Default or Event of Default shall have occurred and be continuing or shall
result after giving effect to this Amendment.

 

2.3          Upfront Fee.  The
Borrower shall have paid to each Lender that consents to this Amendment by
delivering an executed counterpart to this Amendment an upfront fee in an
amount equal to 0.375% of such Lender’s Commitment.

 

7

 

2.4          Fees. 
The Borrower,
the Administrative Agent and J.P. Morgan Securities Inc., as Sole Bookrunner
and Lead Arranger (“J.P. Morgan”), shall have executed and delivered a
fee letter in connection with this Amendment, and J.P. Morgan and the
Administrative Agent shall have received the fees payable under such fee letter
at the time this Amendment becomes effective.

 

2.5          Other Documents.  The
Administrative Agent shall have received such other instruments and documents
incidental and appropriate to the transaction provided for herein as the
Administrative Agent or its special counsel may reasonably request, and all
such documents shall be in form and substance satisfactory to the
Administrative Agent.

 

SECTION 3.  Representations and Warranties of Borrower.  To induce the Lenders to enter into this Amendment, each Credit Party
hereby represents and warrants to the Lenders as follows:

 

3.1          Reaffirmation of Representations and
Warranties/Further Assurances.  After giving effect to the
amendments herein, each representation and warranty of such Credit Party
contained in the Credit Agreement or in any other Loan Document is true and
correct in all material respects on the date hereof (except to the extent such
representations and warranties relate solely to an earlier date, in which case
such representations and warranties shall have been true and correct in all
material respects as of such date).

 

3.2          Corporate Authority; No Conflicts.  The
execution, delivery and performance by such Credit Party of this Amendment and
all documents, instruments and agreements contemplated herein are within such
Credit Party’s corporate or other organizational powers, have been duly
authorized by all necessary action, require no action by or in respect of, or filing
with, any court or agency of government and do not violate or constitute a
default under any provision of any applicable law or other agreements binding
upon such Credit Party or result in the creation or imposition of any Lien upon
any of the assets of such Credit Party except for Liens permitted under
Section 7.02 of the Credit Agreement.

 

3.3          Enforceability.  This
Amendment has been duly executed and delivered by each Credit Party and
constitutes the valid and binding obligation of such Credit Party enforceable
in accordance with its terms, except as (i) the enforceability thereof may
be limited by bankruptcy, insolvency or similar laws affecting creditor’s
rights generally, and (ii) the availability of equitable remedies may be
limited by equitable principles of general application.

 

3.4          No Default.  As
of the Third Amendment Effective Date, both before and immediately after giving
effect to this Amendment, no Default or Event of Default has occurred and is
continuing.

 

SECTION 4.  Miscellaneous.

 

4.1          Reaffirmation of Loan Documents and
Liens.  Except as amended and modified hereby, any
and all of the terms and provisions of the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby in all respects
ratified and confirmed by each Credit Party. 
Each Credit Party hereby agrees that the amendments and modifications
herein contained shall in no manner affect or impair the liabilities, duties
and 

 

8

 

obligations of any Credit Party under the
Credit Agreement and the other Loan Documents or the Liens securing the payment
and performance thereof.

 

4.2          Parties in Interest.  All of the terms and provisions of this
Amendment shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

4.3          Legal Expenses.  Each Credit Party hereby agrees to pay all
reasonable fees and expenses of special counsel to the Administrative Agent
incurred by the Administrative Agent in connection with the preparation,
negotiation and execution of this Amendment and all related documents.

 

4.4          Counterparts.  This Amendment 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. 
Delivery of photocopies of the signature pages to this Amendment by
facsimile or electronic mail shall be effective as delivery of manually
executed counterparts of this Amendment.

 

4.5          Complete Agreement.  THIS
AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

 

4.6          Headings.  The headings, captions and
arrangements used in this Amendment are, unless specified otherwise, for
convenience only and shall not be deemed to limit, amplify or modify the terms
of this Amendment, nor affect the meaning thereof.

 

4.7          Governing Law.  This
Amendment shall be construed in accordance with and governed by the laws of the
State of New York.

 

[Signature
Pages Follow]

 

9

 

IN WITNESS
WHEREOF, the parties
have caused this Amendment to be duly executed as of the date first above
written.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  EXCO RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. DOUGLAS RAMSEY

  
	
   

  	
  Name:

  	
  J. Douglas
  Ramsey, Ph.D.

  
	
   

  	
  Title:

  	
  Vice
  President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  EXCO – NORTH COAST ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
  EXCO – NORTH COAST ENERGY

  EASTERN, INC.

  
	
   

  	
   

  
	
   

  	
  EXCO SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  EXCO MIDCONTINENT MLP, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. DOUGLAS RAMSEY

  
	
   

  	
  Name:

  	
  J. Douglas Ramsey, Ph.D.

  
	
   

  	
  Title:

  	
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
  for each of the Credit Parties listed above

  
				

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,  

  as a Lender and as Administrative Agent, Swingline

  Lender and Issuing Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WM. MARK
  CRANMER

  
	
   

  	
  Name: Wm. Mark Cranmer

  
	
   

  	
  Title: Senior Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  UBS LOAN FINANCE LLC
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ IRJA R. OTSA

  
	
   

  	
  Name: Irja R. Otsa

  
	
   

  	
  Title: Associate Director

  Banking Products Services, US

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARY
  E.EVANS

  
	
   

  	
  Name: Mary E. Evans

  
	
   

  	
  Title: Associate Director

  Banking Products Services, US

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  TORONTO DOMINION (TEXAS) LLC
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DEBBI L.
  BRITO

  
	
   

  	
  Name: Debbi L. Brito

  
	
   

  	
  Title: Authorized Signatory

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS

  BRANCH
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ VANESSA
  GOMEZ

  
	
   

  	
  Name: Vanessa Gomez

  
	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ NUPUR
  KUMAR

  
	
   

  	
  Name: Nupur Kumar

  
	
   

  	
  Title: Vice President

  
				

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  CREDIT SUISSE LOAN FUNDING LLC
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT
  FRANZ

  
	
   

  	
  Name: Robert Franz

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KENNETH
  HOFFMAN

  
	
   

  	
  Name: Kenneth Hoffman

  
	
   

  	
  Title: Managing Director

  
				

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  BNP PARIBAS
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RICHARD
  HAWTHORNE

  
	
   

  	
  Name: Richard Hawthorne

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ EDWARD PAK

  
	
   

  	
  Name: Edward Pak

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  NATIXIS
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DONOVAN
  C. BROUSSARD

  
	
   

  	
  Name: Donovan C. Broussard

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ LIANA
  TCHERNYSHEVA

  
	
   

  	
  Name: Liana Tchernysheva

  
	
   

  	
  Title: Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  ROYAL BANK OF CANADA
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DON J.
  MCKINNERNEY

  
	
   

  	
  Name: Don J. McKinnerney

  
	
   

  	
  Title: Authorized Signatory

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARK
  LUMPKIN, JR.

  
	
   

  	
  Name: Mark Lumpkin, Jr.

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  SOCIETE GENERALE
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ELENA
  ROBCIUC

  
	
   

  	
  Name: Elena Robciuc

  
	
   

  	
  Title: Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  STERLING BANK
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JEFF A.
  FORBIS

  
	
   

  	
  Name: Jeff A. Forbis

  
	
   

  	
  Title: Senior Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  UNION BANK OF CALIFORNIA, N.A.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WHITNEY
  RANDOLPH

  
	
   

  	
  Name: Whitney Randolph

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  SCOTIABANC, INC.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.F.
  TODD

  
	
   

  	
  Name: J.F. Todd

  
	
   

  	
  Title: Managing Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  WACHOVIA BANK NATIONAL

  ASSOCIATION
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PAUL
  PRITCHETT

  
	
   

  	
  Name: Paul Pritchett

  
	
   

  	
  Title: Vice President Credit Products Group

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  WELLS FARGO BANK, N.A.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JASON
  HICKS

  
	
   

  	
  Name: Jason Hicks

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  WESTLB AG, NEW YORK BRANCH
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JONATHAN
  CODY

  
	
   

  	
  Name: Jonathan Cody

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  CHRISTOPHER NUNN

  
	
   

  	
  Name: Christopher Nunn

  
	
   

  	
  Title: Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  BMO CAPITAL MARKETS FINANCING,

  INC.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JAMES V.
  DUCOTE

  
	
   

  	
  Name: James V. Ducote

  
	
   

  	
  Title: Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  BANK OF SCOTLAND
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ KAREN
  WEICH

  
	
   

  	
  Name: Karen Weich

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  CITIBANK, N.A.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RYAN
  WATSON

  
	
   

  	
  Name: Ryan Watson

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  ALLIED IRISH BANKS, P.L.C.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT
  F. MOYLE

  
	
   

  	
  Name: Robert F. Moyle

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID O’DRISCOLL

  
	
   

  	
  Name: David O’Driscoll

  
	
   

  	
  Title: Assistant Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  CALYON NEW YORK BRANCH
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  D. WILLIS

  
	
   

  	
  Name: Michael D. Willis

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ TOM
  BYARGEON

  
	
   

  	
  Name: Tom Byargeon

  
	
   

  	
  Title: Managing Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DARIA
  MAHONEY

  
	
   

  	
  Name: Daria Mahoney

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  COMERICA BANK
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PETER L.
  SEFZIK

  
	
   

  	
  Name: Peter L. Sefzik

  
	
   

  	
  Title: Senior Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  FORTIS CAPITAL CORP.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHELE
  JONES

  
	
   

  	
  Name: Michele Jones

  
	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DARRELL
  HOLLEY

  
	
   

  	
  Name: Darrell Holley

  
	
   

  	
  Title: Managing Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  BANK OF AMERICA
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JEFFREY
  H. RATHKAMP

  
	
   

  	
  Name: Jeffrey H. Rathkamp

  
	
   

  	
  Title: Managing Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  SUMITOMO MITSUI BANKING

  CORPORATION
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WILLIAM
  M. GINN

  
	
   

  	
  Name: William M. Ginn

  
	
   

  	
  Title: General Manager

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ANDREW
  CADITZ

  
	
   

  	
  Name: Andrew Caditz

  
	
   

  	
  Title: Authorized Signatory

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  BARCLAYS BANK PLC
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MARIA
  LUND

  
	
   

  	
  Name: Maria Lund

  
	
   

  	
  Title: Vice President

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  MORGAN STANLEY BANK
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MELISSA
  JAMES

  
	
   

  	
  Name: Melissa James

  
	
   

  	
  Title: Authorized Signatory

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

 

 

	
   

  	
  THE BANK OF NOVA SCOTIA
 as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID G.
  MILLS

  
	
   

  	
  Name: David G. Mills

  
	
   

  	
  Title: Managing Director

  

 

Third Amendment to Second Amended and
Restated Credit Agreement – Signature Page

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