Document:

Exhibit 4.16

 

EXCO RESOURCES, INC. EMPLOYEES SAVINGS TRUST 

POST-EGTRRA AMENDMENT

 

ARTICLE I 

PREAMBLE

 

1.1                                 Adoption and effective date of amendment. This amendment of the plan is adopted to reflect
certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001
(“EGTRRA”), the Job Creation and Worker Assistance Act of 2002, IRS Regulations
issued pursuant to IRC §401 (a)(9), and other IRS guidance. This amendment is intended
as good faith compliance with the requirements of EGTRRA and is to be construed
in accordance with EGTRRA and guidance issued thereunder. Except as otherwise provided,
this amendment shall be effective as of the first day of the first plan year beginning
after December 31, 2001.

 

1.2                                 Supersession of inconsistent provisions. This amendment shall supersede the provisions
of the plan to the extent those provisions are inconsistent with the provisions
of this amendment.

 

ARTICLE II 

ADOPTION AGREEMENT ELECTIONS

 

Amendment for
Section 401 (a)(9) Final and Temporary Treasury Regulations.

 

Effective date.
This amendment applies
for purposes of determining required minimum distributions for distribution calendar
years beginning with the 2003 calendar year, as well as required minimum distributions
for the 2002 distribution calendar year that are made on or after January 1, 2003.

 

ARTICLE III 

INVOLUNTARY CASH-OUTS

 

3.1                                 Applicability and effective date. If the plan is subject to the qualified joint
and survivor annuity rules and provides for involuntary cash-outs of amounts less
than $5,000, then this Article shall apply for distributions made after December
31, 2001, and shall apply to all participants.

 

3.2                                 Rollovers included in determining value of account
balance for involuntary distributions. For purposes of the Sections of the plan that provide for involuntary
distribution of vested accrued benefits of $5,000 or less, the value of a participant’s
nonforfeitable account balance shall be determined by including that portion of
the account balance that is attributable to rollover contributions (and earnings
allocable thereto) within the meaning of Sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the value of the participant’s
nonforfeitable account balance as so determined is $5,000 or less, then the plan
shall immediately distribute the participant’s entire nonforfeitable account balance.

 

ARTICLE IV 

HARDSHIP DISTRIBUTIONS

 

Reduction of Section 402(g) of
the Code following hardship distribution. If the plan provides for hardship distributions
upon satisfaction of the safe harbor (deemed) standards as set forth in Treas. Reg.
Section 1.40 (k)-1 (d)(2)(iv), then effective as of the date the elective deferral
suspension period is reduced from 12 months to 6 months pursuant to EGTRRA, there
shall be no reduction in the maximum amount of elective deferrals that a Participant
may make pursuant to Section 402(g) of the Code solely because of a hardship distribution
made by this plan or any other plan of the Employer.

 

 

ARTICLE V

CATCH-UP CONTRIBUTIONS

 

Catch-up Contributions. All employees who are eligible to make elective
deferrals under this plan and who have attained age 50 before the close of the calendar
year shall be eligible to make catch-up contributions in accordance with, and subject
to the limitations of, Section 414(v) of the Code. Such catch-up contributions shall
not be taken into account for purposes of the provisions of the plan implementing
the required limitations of Sections 402(g) and 415 of the Code. The plan shall
not be treated as failing to satisfy the provisions of the plan implementing the
requirements of Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the
Code, as applicable, by reason of the making of such catch-up contributions.

 

Catch-up contributions shall
be treated as elective deferrals for purposes of applying any Employer matching
contributions under the plan.

 

ARTICLE VI 

REQUIRED MINIMUM DISTRIBUTIONS

 

6.1                               GENERAL RULES

 

6.1.1                        Effective Date. Unless a later effective date is specified in
Article II of this amendment, the provisions of this amendment will apply for purposes
of determining required minimum distributions for calendar years beginning with
the 2002 calendar year.

 

6.1.2                        Precedence. The requirements of this amendment will take precedence over any inconsistent
provisions of the Plan.

 

6.1.3                        Requirements of Treasury Regulations Incorporated. All distributions required under this amendment
will be determined and made in accordance with the Treasury regulations under Section
401(a)(9) of the Internal Revenue Code.

 

6.1.4                        TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
amendment, distributions may be made under a designation made before January 1,
1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility
Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

 

6.2                               TIME AND MANNER OF DISTRIBUTION

 

6.2.1                        Required Beginning Date. The Participant’s entire interest will be distributed,
or begin to be distributed, to the Participant no later than the Participant’s required
beginning date.

 

6.2.2                        Death of Participant Before Distributions Begin. If the Participant dies before distributions
begin, the Participant’s entire interest will be distributed, or begin to be distributed,
no later than as follows:

 

(a)          If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, then, except as provided in Article VI, distributions to the surviving
spouse will begin by December 31 of the calendar year immediately following the
calendar year in which the Participant died, or by December 31 of the calendar year
in which the Participant would have attained age 701⁄2, if later.

 

(b)         If the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, distributions to the designated beneficiary will begin by December
31 of the calendar year immediately following the calendar year in which the Participant
died.

 

(c)          If there is no designated beneficiary as of September 30 of the year following
the year of the Participant’s death, the Participant’s entire interest will be distributed
by December 31 of the calendar year containing the fifth anniversary of the Participant’s
death.

 

 

(d)         If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary and the surviving spouse dies after the Participant but before distributions
to the surviving spouse begin, this Section 6.2.2, other than Section 6.2.2(a),
will apply as if the surviving spouse were the Participant.

 

For
purposes of this Section 6.2.2 and Section 2.3, unless Section 6.2.2(d) applies,
distributions are considered to begin on the Participant’s required beginning date.
If Section 6.2.2(d) applies, distributions are considered to begin on the date distributions
are required to begin to the surviving spouse under Section 6.2.2(a). If distributions
under an annuity purchased from an insurance company irrevocably commence to the
Participant before the Participant’s required beginning date (or to the Participant’s
surviving spouse before the date distributions are required to begin to the surviving
spouse under Section 6.2.2(a)), the date distributions are considered to begin is
the date distributions actually commence.

 

6.2.3                        Forms of Distribution. Unless the Participant’s interest is distributed
in the form of an annuity purchased from an insurance company or in a single sum
on or before the required beginning date, as of the first distribution calendar
year distributions will be made in accordance with Sections 6.3 and 6.4 of this
amendment. If the Participant’s interest is distributed in the form of an annuity
purchased from an insurance company, distributions thereunder will be made in accordance
with the requirements of Section 401(a)(9) of the Code and the Treasury regulations.

 

6.3                               REQUIRED MINIMUM DISTRIBUTIONS
DURING PARTICIPANT’S LIFETIME

 

6.3.1                        Amount of Required Minimum Distribution For Each
Distribution Calendar Year. During
the Participant’s lifetime, the minimum amount that will be distributed for each
distribution calendar year is the lesser of:

 

(a)          the quotient obtained by dividing the Participant’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9
of the Treasury regulations, using the Participant’s age as of the Participant’s
birthday in the distribution calendar year; or

 

(b)         if the Participant’s sole designated beneficiary for the distribution calendar
year is the Participant’s spouse, the quotient obtained by dividing the Participant’s
account balance by the number in the Joint and Last Survivor Table set forth in
Section 1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and spouse’s
attained ages as of the Participant’s and spouse’s birthdays in the distribution
calendar year.

 

6.3.2                        Lifetime Required Minimum Distributions Continue
Through Year of Participant’s Death. Required minimum distributions will be determined under this Section 6.3
beginning with the first distribution calendar year and up to and including the
distribution calendar year that includes the Participant’s date of death.

 

6.4                               REQUIRED MINIMUM DISTRIBUTIONS
AFTER PARTICIPANT’S DEATH

 

6.4.1                        Death On or After Date Distributions Begin.

 

(a)          Participant Survived by Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s account balance by
the longer of the remaining life expectancy of the Participant or the remaining
life expectancy of the Participant’s designated beneficiary, determined as follows:

 

(1)          The Participant’s remaining life expectancy is calculated using the age
of the Participant in the year of death, reduced by one for each subsequent year.

 

(2)          If the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is calculated
for each distribution calendar year after the year of the Participant’s death using
the surviving spouse’s age as of the spouse’s birthday in that year. For distribution
calendar years after the year of the surviving spouse’s death, the remaining life
expectancy of the surviving spouse is calculated using the age of the surviving
spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced
by one for each subsequent calendar year.

 

 

(3)          If the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is calculated
using the age of the beneficiary in the year following the year of the Participant’s
death, reduced by one for each subsequent year.

 

(b)         No Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is no designated beneficiary as of September 30 of
the year after the year of the Participant’s death, the minimum amount that will
be distributed for each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s account balance by
the Participant’s remaining life expectancy calculated using the age of the Participant
in the year of death, reduced by one for each subsequent year.

 

6.4.2                        Death Before Date Distributions Begin.

 

(a)          Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions
begin and there is a designated beneficiary, the minimum amount that will be distributed
for each distribution calendar year after the year of the Participant’s death is
the quotient obtained by dividing the Participant’s account balance by the remaining
life expectancy of the Participant’s designated beneficiary, determined as provided
in Section 6.4.1.

 

(b)         No Designated Beneficiary. If the Participant dies before the date distributions
begin and there is no designated beneficiary as of September 30 of the year following
the year of the Participant’s death, distribution of the Participant’s entire interest
will be completed by December 31 of the calendar year containing the fifth anniversary
of the Participant’s death.

 

(c)          Death Surviving Spouse Before Distributions to
Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole designated beneficiary, and the surviving
spouse dies before distributions are required to begin to the surviving spouse under
Section 6.2.2(a), this Section 6.4.2 will apply as if the surviving spouse were
the Participant.

 

6.5                               DEFINITIONS

 

6.5.1                        Designated beneficiary. The individual who is designated as the Beneficiary
under the Plan and is the designated beneficiary under Section 401(a)(9) of the
Internal Revenue Code and Section 1.40 (a)(9)-1, Q&A-4, of the Treasury regulations.

 

6.5.2                        Distribution calendar year. A calendar year for which a minimum distribution
is required. For distributions beginning before the Participant’s death, the first
distribution calendar year is the calendar year immediately preceding the calendar
year, which contains the Participant’s required beginning date. For distributions
beginning after the Participant’s death, the first distribution calendar year is
the calendar year in which distributions are required to begin under Section 6.2.2.
The required minimum distribution for the Participant’s first distribution calendar
year will be made on or before the Participant’s required beginning date. The required
minimum distribution for other distribution calendar years, including the required
minimum distribution for the distribution calendar year in which the Participant’s
required beginning date occurs, will be made on or before December 31 of that distribution
calendar year.

 

6.5.3                        Life expectancy. Life expectancy as computed by use of the Single
Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.

 

6.5.4                        Participant’s account balance. The account balance as of the last valuation
date in the calendar year immediately preceding the distribution calendar year (valuation
calendar year) increased by the amount of any contributions made and allocated or
forfeitures allocated to the account balance as of dates in the valuation calendar
year after the valuation date and decreased by distributions made in the valuation
calendar year after the valuation date. The account balance for the valuation calendar
year includes any amounts rolled over or transferred to the Plan either in the valuation
calendar year or in the distribution calendar year or in the distribution calendar
year if distributed or transferred in the valuation calendar year.

 

6.5.5                        Required beginning date. The date specified in the Plan when distributions
under Section 401(a)(9) of the Internal Revenue Code are required to begin.

 

 

ARTICLE VII

DEEMED 125 COMPENSATION

 

Effective as of Plan Years and
Limitation Years beginning on or after January 1, 1998, or, if later, the effective
date of the Plan.

 

For purposes of any definition
of compensation under this Plan that includes a reference to amount under Section
125 of the Code, amounts under Section 125 of the Code include any amounts not available
to a Participant in cash in lieu of group health coverage because the Participant
is unable to certify that he or she has other health coverage. An amount will be
treated as an amount under Section 125 of the Code only if the Employer does not
request or collect information regarding the Participant’s other health coverage
as part of the enrollment process for the health plan.

 

This amendment has been executed
this 19th day of September, 2003.

 

Name of Plan:  EXCO Resources, Inc. Employees Savings Trust

 

Name of Employer:  EXCO Resources, Inc.

 

 

	
  By:

  	
  /s/ T. W. Eubank

  	
   

  
	
   

  	
  T. W. EubankExhibit 4.17

 

	
   

  	
  Please sign and return to
  CPI

  
	
   

  	
   

  
	
  **Amended effective
  01/05**

  	
  Please place in the Plan
  manual

  
	
   

  	
   

  
	
   

  	
  Please place
  in the plastic covered 

  Summary Plan Description

  

 

EXCO RESOURCES, INC. EMPLOYEES SAVING

PARTICIPANT LOAN PROGRAM

 

EXCO
Resources, Inc. Employees Savings Trust permits loans to be made to
Participants and their  beneficiaries.
However, before any loan is made, Section 9.04 of the Trust requires that
a written loan program be
established which sets forth the rules and guidelines for malting
Participant loans. This document
shall serve as the required written loan program. In addition, the Plan
Administrator may use this document
to serve as, or supplement, any required notice of the loan program to
Participants and their beneficiaries.
All references to Participants in this loan program shall include Participants
and their Beneficiaries or
alternate payee with respect to the Plan who are “parties in interest” as
defined by ERISA §3(14).

 

1.                                       The Plan Administrator is authorized to
administer the Participant loan program. All applications for loans shall be made by a Participant to the Plan
Administrator on forms which the
Plan Administrator will make available for such purpose.

 

2.                                       A Participant or Beneficiary may apply
for a loan provided at least two weeks written notification is given to the
Plan Administrator to process the loan. The Participant shall also be required
to provide such supporting information deemed necessary by the Plan
Administrator. In addition, a service fee for processing and maintenance of the
loan may be charged to the Participant. Such fee, if applicable, shall be
commensurate with fees charged by other lenders and shall be a reasonable
reimbursement to the Trust for administrative, legal, actuarial or other costs associated
with making the loan.

 

3.                                       The Plan Administrator shall determine
whether a Participant qualifies for a loan, applying such criteria as a commercial
lender of funds would apply in like circumstances with respect to the
Participant. The Participant agrees, as a condition for receiving the loan, to
make repayments through direct, after-tax payroll deduction by the Employer.
Loan repayments must be based on the amortization schedule. Payments must be
equal to the repayment amount on the amortization schedule or in exact
multiples of the repayment amount. No deviant loan payments will be allowed
other than if the outstanding loan balance is being paid in full. If the
Participant has an unpaid leave of absence or goes on military leave while
having an outstanding loan, the Participant should contact the Plan
Administrator to find out the repayment options available.

 

4.                                       With regard to any loan made pursuant to this
program, the following rule(s) and limitation(s) shall apply, in addition to
such other requirements set forth in the Trust:

 

i)                 Plan loans shall be made only to those
individuals who are considered to be parties in interest.

 

ii)              No loan in an amount less than $1,000 shall
be granted to any Participant. No more than two (2) loans shall be allowed
at any given time.**

 

iii)           All Loans made pursuant to this program shall
be considered as a directed investment from the account of the Participant
maintained under the Trust. A loan shall be deemed

 

 

EXHIBIT A

 

to
be an investment of a fund or funds of the Participant’s choice and shall be
made available to the extent there are liquid assets available in the selected
fund(s). As such, all payments of principal made interest made by the
Participant shall be credited only to the selected account(s) of such
Participant, and based on current election percentages.

 

iv)          A Participant shall be entitled to a loan up
to one-half (1/2) of the present value of the non-forfeitable accrued benefit
of the Participant under the Trust.

 

v)             The maximum aggregate dollar amount of loans
outstanding to any Participant may not exceed $50,000 as aggregated with
all Participant loans from other employer qualified plans, reduced by the
excess of the Participant’s highest outstanding Participant loan balance during
the 12-month period ending on the date of the loan over the Participant’s
current outstanding Participant loan balance on the date of the loan.

 

5.                                       Any loan granted or renewed under this
program shall bear a reasonable rate of interest. Such rate of interest shall
be Prime plus 2%. The loan shall provide for level amortization with payments
to be made not less frequently than quarterly over a period not to exceed five (5) years.
If the purpose of the loan is to acquire or construct the primary residence of
the Participant, the period of repayment may exceed five years, but in no
event shall it exceed the usual repayment period required by commercial lenders
for similar loans.

 

6.                                       The Trust shall require that adequate
security be provided by the Participant before a loan is granted. For this
purpose, the Trust can consider a Participant’s vested account balance under
the Trust to be security. However, in no event shall more than 50% of a Participant’s
vested account balance in the Trust (determined immediately after origination
of the loan) be used as security for the loan. The use of security other than
the Participant’s vested account balance is prohibited.

 

7.                                       Generally, a default occurs when any
scheduled payment is not paid when due. However, there will be a grace period
from the due date of the missed payment through the first day of the third
month after the end of the quarter in which the required payment was due but
not made. If the missed payment is made during the grace period then no
distribution will be deemed to have occurred. If the missed payment is not made
during the grace period then a distribution will be deemed to have occurred as
provided in Treasury Regulation 1.72(p)-1, A-4(a). The Plan Administrator will
take such steps as it deems necessary to preserve plan assets in the event of a
default. If a Plan loan is in default the loan will not be offset against the
vested account balance until a distributable event occurs in the Plan. Under
certain circumstances, a loan that is in default may be considered a
distribution from the Plan, and thereby resulting in taxable income to the
Participant.**

 

8.                                       If the Participant becomes entitled to a
distribution from the Plan due to a termination of employment, the loan becomes
due and payable on the first day of the third month after the end of the
quarter in which he/she terminates employment, unless the Plan Administrator,
at their discretion, allows the Participant to continue making payments. If the
terminated Participant is allowed to make payments, the loan will not be in
default unless the portions of the preceding

 

 

paragraph
are violated. If the Plan Administrator does not allow the Participant to
continue making payments, the Participant may repay the entire outstanding
balance of the loan (including any accrued interest), If the Participant does
not repay the entire outstanding loan balance, the Participant’s vested account
balance will be reduced by the remaining outstanding balance of the loan.**

 

9.                                       Upon satisfaction of the criteria established
for granting a loan, the Plan Administrator shall inform the Trustee that
the Participant has qualified to receive a loan under the Trust’s program. The
Plan Administrator shall then require that the Participant execute all
documents necessary to establish the loan, including a promissory note, payroll
withholding form and such other documents which will provide the Trust
with adequate security and for repayment of the outstanding loan amount.

 

10.                                 If a Participant separates from service (or
takes a leave of absence) from the Employer because of service in the military
and does not receive a distribution of his or her account balances, the Plan
shall suspend loan repayments until the Participant’s completion of military
service or until the Participant’s fifth anniversary of commencement of
military service, if earlier. The Plan Administrator will provide the
Participant with a written explanation of the effect of the Participant’s
military service upon his or her Plan loan.

 

11.                                 If a Participant takes an approved leave of
absence from the Employer, the Plan shall suspend loan repayments for a period
not exceeding one year. The Plan Administrator will provide the Participant
with a written explanation of the effect of the leave of absence upon his or
her Plan loan.**

 

Adopted this 30th day of March, 2005. This
loan program may be amended from time to time.

 

	
  EXCO RESOURCES, INC.

  
	
   

  
	
   

  
	
  /s/ T.W. Eubank

  	
   

  
	
  T.W. EUBANK

  
	
  PRESIDENT

  
	
   

  
	
   

  
	
  /s/ J. Douglas Ramsey

  	
   

  
	
  J. DOUGLAS RAMSEY

  
	
  TRUSTEE

  
	
   

  
	
   

  
	
  /s/ Charles R. Evans

  	
   

  
	
  CHARLES R. EVANS

  
	
  TRUSTEE

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