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Exhibit 10.4  

 
 

FORM OF  
    
    ADMINISTRATIVE SERVICES AGREEMENT  
    
    AMONG  
    
    EXCO PARTNERS GP LP, LLC,

    
    EXCO GP PARTNERS, LP,  
    
    EXCO PARTNERS, LP,  
    
    EXCO PARTNERS OPERATING GP, LLC,  
    
    EXCO PARTNERS OPERATING MLP, LP,  
    
    AND  
    
    EXCO RESOURCES, INC.  

  

	Table of Contents
	
ARTICLE I
	

DEFINITIONS
	

Section 1.1	

Definitions.	
 	

1
	Section 1.2	Construction.	 	4
	

ARTICLE II
	

RETENTION OF EXCO; SCOPE OF SERVICES
	

Section 2.1	

Retention of EXCO.	
 	

4
	Section 2.2	Scope of Services.	 	4
	Section 2.3	Modification of Services.	 	4
	Section 2.4	Performance of Services by Affiliates and Third Parties.	 	4
	Section 2.5	Intellectual Property.	 	5
	Section 2.6	License Agreement.	 	5
	Section 2.7	Confidential Information.	 	6
	Section 2.8	Appointment of Independent Registered Public Accounting Firm and Independent Petroleum Engineer.	 	6
	Section 2.9	No Effect on Partnership Agreement.	 	6
	

ARTICLE III
	

BOOKS, RECORDS AND REPORTING
	

Section 3.1	

Books and Records.	
 	

6
	Section 3.2	Audits.	 	7
	Section 3.3	Reports.	 	7
	

ARTICLE IV
	

ADMINISTRATIVE SERVICES FEE
	

Section 4.1	

Administrative Services Fee and Payment Amount.	
 	

7
	Section 4.2	Payment of Payment Amount.	 	8
	Section 4.3	Set Off.	 	8
	Section 4.4	EXCO Employees.	 	8
	Section 4.5	Additional Review and Approvals.	 	9
	Section 4.6	Disputed Charges.	 	9
	

ARTICLE V
	

FORCE MAJEURE
	

Section 5.1	

Force Majeure.	
 	

9
	

ARTICLE VI
	

ASSIGNMENT
	

Section 6.1	

Assignments.	
 	

10
	Section 6.2	Other Requirements.	 	10
	 	 	 	 

i

 

	

ARTICLE VII
	

TERMINATION
	

Section 7.1	

Termination by the Partnership on behalf of the Partnership Group.	
 	

10
	Section 7.2	Termination by EXCO.	 	11
	Section 7.3	Effect of Termination.	 	11
	

ARTICLE VIII
	

GENERAL PROVISIONS
	

Section 8.1	

Liabilities and Indemnification.	
 	

11
	Section 8.2	Relationship of Parties.	 	12
	Section 8.3	No Warranty.	 	12
	Section 8.4	Notices.	 	12
	Section 8.5	Further Action.	 	13
	Section 8.6	Binding Effect.	 	13
	Section 8.7	Integration.	 	13
	Section 8.8	Creditors.	 	13
	Section 8.9	Waiver.	 	13
	Section 8.10	Counterparts.	 	13
	Section 8.11	Applicable Law.	 	13
	Section 8.12	Invalidity of Provisions.	 	13
	Section 8.13	Amendment or Modification.	 	13
	Section 8.14	Directly or Indirectly.	 	14
	Section 8.15	Rights of Limited Partners.	 	14

ii

 
 

ADMINISTRATIVE SERVICES AGREEMENT    
    

        THIS ADMINISTRATIVE SERVICES AGREEMENT is entered into on, and effective as of
[                        ], 2008
(the "Effective Date"), among EXCO Partners GP LP, LLC, a Delaware limited liability company
("GP LLC"), EXCO GP Partners, LP, a Delaware limited partnership (the "General
Partner"), EXCO Partners, LP, a Delaware limited partnership (the "Partnership"), EXCO Partners
Operating GP, LLC, a Delaware limited liability company ("OLP GP LLC"), EXCO Partners Operating MLP, LP, a Delaware
limited partnership (the "Operating Partnership"), and EXCO Resources, Inc., a Texas corporation
("EXCO," and collectively with the General Partner, the Partnership and the Operating Partnership, the
"Parties" and each, a "Party"). 

 
 

RECITALS    
    

        A.
The Partnership is the owner, directly or indirectly, of the Business (as hereinafter defined); 

        B.
The Partnership Group (as hereinafter defined) requires certain services to operate and manage the Business and to fulfill other general and administrative functions relating
to the Business; and 

        C.
The Partnership Group desires to engage EXCO to provide such services, and EXCO is willing to undertake such engagement, subject to the terms and conditions of this Agreement; 

        NOW,
THEREFORE, the Parties agree as follows: 

 
 

ARTICLE I    
    
    DEFINITIONS    
    

        Section 1.1
Definitions.

        (a)   The
following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement. 

        "Action" is defined in Section 8.1(b). 

        "Administrative Services Fee" is defined in Section 4.1. 

        "Affiliate" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls,
is controlled by or is under common control with, the Person in question. As used herein, the term "control" means the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise; provided,  however, that no member of the
Partnership Group shall be deemed to be an Affiliate of EXCO for purposes of this Agreement. This definition shall not be
controlling for tax purposes. 

        "Agreement" means this Administrative Services Agreement, as it may be amended, supplemented or restated from time to time. 

        "Business" means the business of the Partnership Group, as conducted from time to time, and which includes, but is not limited to, the
business of the Partnership Group described in the Registration Statement. 

        "Bankrupt" with respect to any Person means such Person shall generally be unable to pay its debts as such debts become due, or shall so
admit in writing or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against such Person seeking to adjudicate it a bankrupt or insolvent, or
seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property and, in the case
of any such proceeding instituted against it (but not instituted by it), shall remain undismissed or unstayed for a period of 30 days; or such Person shall take any action to authorize
any of the actions set forth above. 

 

        "Confidential Information" means non-public information about the disclosing Party's or any of its Affiliates' businesses or
activities that is proprietary and confidential, which shall include, without limitation, all business, financial, technical, seismic and other information, including software (source and object code)
and programming code, of a Party or its Affiliates marked or designated "confidential" or "proprietary" or by its nature or the circumstances surrounding its disclosure it should reasonably be
regarded as confidential. Confidential Information includes not only written or other tangible information, but also information transferred orally, visually, electronically or by any other means.
Confidential Information does not include information that (i) is in or enters the public domain without breach of this Agreement, or (ii) the receiving Party lawfully receives from a
third party without restriction on disclosure and to the receiving Party's knowledge without breach of a nondisclosure obligation. 

        "Conflicts Committee" is defined in the Partnership Agreement. 

        "Contribution Agreement" means that certain Contribution, Conveyance, Assumption and Indemnification Agreement
dated                        ,
2008, by and among EXCO, the Partnership, the GP LLC, the General Partner, EXCO Partners MLP LP, LLC, OLP GP LLC, the Operating Partnership, North Coast, and
North Coast Energy Eastern, LLC. 

        "Damages" is defined in Section 8.1. 

        "Default Rate" means an interest rate (which shall in no event be higher than the rate permitted by applicable law) equal to
250 basis points over LIBOR. 

        "Effective Date" is defined in the introductory paragraph. 

        "EXCO" is defined in the introductory paragraph. 

        "EXCO Indemnified Party" is defined in Section 8.1(b). 

        "General Partner" is defined in the introductory paragraph. 

        "Governmental Authority" means any court or tribunal in any jurisdiction or any federal, state, tribal, municipal or local government or
other governmental body, agency, authority, department, commission, board, bureau, instrumentality, arbitrator or arbitral body or any quasi-governmental or private body lawfully exercising any
regulatory or taxing authority. 

        "GP LLC" is defined in the introductory paragraph. 

        "Intellectual Property" is any and all intellectual and industrial property rights, whether or not subject to statutory protection,
including without limitation, trade secret rights, copyrights and patent rights, but specifically excluding Marks and similar rights relating to source designation. 

        "Laws" means any applicable statute, common law, rule, regulation, judgment, order, ordinance, writ, injunction, decree, permit, license
or authorization issued or promulgated by any Governmental Authority. 

        "Licensees" means, for purposes of Section 2.6 hereof, any member of the Partnership Group. 

        "Licensor" means, for purposes of Section 2.6 hereof, EXCO. 

        "Limited Partners" is defined in the Partnership Agreement. 

        "Marks" means all trademarks, tradenames, logos and/or service marks identified on  Annex A attached hereto. 

        "Master Operating Agreement" means the Master Operating Agreement entered into on an even date herewith by EXCO, the Partnership and the
other parties thereto with respect to operation of the Partnership Properties. 

2

 

        "North Coast" means North Coast Energy, LLC, a Delaware limited liability company and wholly owned subsidiary of the Partnership. 

        "OLP GP LLC" is defined in the introductory paragraph. 

        "Operating Partnership" is defined in the introductory paragraph. 

        "Parties" is defined in the introductory paragraph. 

        "Partnership" is defined in the introductory paragraph. 

        "Partnership Agreement" means the Amended and Restated Agreement of Limited Partnership of the Partnership dated as of date hereof, as the
same may be amended or restated from time to time. 

        "Partnership Group" means GP LLC, the General Partner, the Partnership, OLP GP LLC, the Operating Partnership
and all of their respective Subsidiaries. 

        "Partnership Group Indemnified Party" is defined in Section 8.1(c). 

        "Partnership Properties" means all properties contributed to the Partnership Group by EXCO pursuant to the Contribution Agreement. 

        "Payment Amount" is defined in Section 4.1. 

        "Payment Default" shall mean the failure of the Partnership to pay the Payment Amount described in Section 4.1 on or before the
45th day following the end of each month. 

        "Person" means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization,
association, government agency or political subdivision thereof or other entity. 

        "Registration Statement" means the Registration Statement on Form S-1 (Registration No. 333-146059)
as it has been or as it may be amended or supplemented from time to time, filed by the Partnership with the United States Securities and Exchange Commission under the the Securities Act of
1933, as amended, supplemented or restated from time to time and any successor to such statute to register the offering and sale of the common units representing limited partner interests in the
Partnership in its initial public offering. 

        "Services" is defined in Section 2.2. 

        "Service Standard" shall mean, with respect to the performance of the Services, the good faith undertaking, on a commercially reasonable
basis, to perform the Services in all material respects in compliance with applicable Laws and prudent industry practices. 

        "Subsidiary" means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares entitled
(without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination,
by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at
the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of
the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or
(c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of
determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person
(without regard to the occurrence of any contingency). 

3

 

        (b)   Other
terms defined herein have the meanings so given them. 

        Section 1.2
Construction.

        Unless
the context requires otherwise: (a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns,
pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to Articles and Sections of this Agreement; (c) references to Exhibits refer to
the Exhibits attached to this Agreement, each of which is made a part hereof for all purposes; (d) the terms "include," "includes," "including" and words of like import shall be deemed to be
followed by the words "without limitation"; (e) the terms "hereof," "herein" and "hereunder" refer to this Agreement as a whole and not to any particular provision of this Agreement; and
(f) references to money refer to legal currency of the United States of America. The table of contents and headings contained in this Agreement are for reference purposes only, and shall
not affect in any way the meaning or interpretation of this Agreement. 

 
 

ARTICLE II    
    
    RETENTION OF EXCO; SCOPE OF SERVICES    
    

        Section 2.1
Retention of EXCO. 

        The
Partnership hereby engages EXCO to perform the Services for the benefit of the Partnership Group on behalf of, and as directed by, the General Partner, and to provide all personnel
and any facilities, goods and equipment not otherwise provided by the Partnership Group that are necessary to perform the Services in accordance with the Service Standard. EXCO hereby accepts such
engagement and agrees to perform the Services requested by the General Partner and to provide any personnel, facilities, goods and equipment not otherwise provided by the Partnership Group that are
necessary to perform the Services in accordance with the Service Standard. EXCO hereby agrees and warrants that all Services will be performed in accordance with the Service Standard. 

        Section 2.2  Scope of Services.

        The
"Services" shall consist of such services that the General Partner determines from time to time are reasonable and necessary to manage
and operate the Business. The initial Services shall include those services described on Schedule I attached hereto. 

        Section 2.3
Modification of Services.

        The GP LLC
may increase or decrease or otherwise modify the scope of the Services from time to time upon 60 days, prior written notice to EXCO, which notice shall
include an amended Schedule I reflecting such modification. In connection with any such modification, the Administrative Services Fee may be
adjusted in accordance with Section 4.1(b). Upon the effectiveness of any such modification, such amended Schedule I shall replace the
existing Schedule I and shall be deemed a part of this Agreement for all purposes. 

        Section 2.4  Performance of Services by Affiliates and Third Parties.

        The
Parties hereby agree that in discharging its obligations hereunder, subject to the restrictions in the Master Operating Agreement or any other operating agreements applicable to the
Partnership Properties, EXCO may engage any of its Affiliates or any qualified third party to perform the Services (or any part of the Services) on its behalf and that the performance of the
Services (or any part of the Services) by any such Affiliate or third party shall be treated as if EXCO performed such Services itself. Notwithstanding the foregoing, nothing contained herein
shall relieve EXCO of its obligations hereunder. 

4

 

        Section 2.5
Intellectual Property.

        (a)   Any
Intellectual Property developed, by EXCO, its Affiliates or its or their employees in connection with the performance of the Services shall be the property of EXCO;  provided, however, that the
Partnership Group shall be granted an irrevocable, royalty-free, non-exclusive and
non-transferable right and license to use such Intellectual Property; and provided further, that the Partnership Group shall only be granted
such a right and license to the extent such grant does not conflict with, or result in a breach, default, or violation of a right or license to use such inventions or material granted to EXCO by any
Person other than an Affiliate of EXCO. Notwithstanding the foregoing, EXCO will use all commercially reasonable efforts to grant such right and license to the Partnership Group. 

        (b)   Each
member of the Partnership Group hereby grants to EXCO and its Affiliates an irrevocable, royalty-free, non-exclusive and
non-transferable right and license to use, during the term of this Agreement, any Intellectual Property provided by the Partnership Group to EXCO or its Affiliates, but only to the extent
such use is necessary for the performance of the Services; provided, however, that EXCO and its Affiliates shall only be granted such a right and
license to the extent such grant does not conflict with, or result in a breach, default, or violation of a right or license to use such Intellectual Property provided to the Partnership Group by any
Person other than an Affiliate of EXCO. EXCO agrees that it and its Affiliates will utilize such Intellectual Property solely in connection with the performance of the Services. 

        Section 2.6
License Agreement. 

        (a)   Grant of License.    Subject to the terms and conditions herein, Licensor hereby grants to Licensees the
non-exclusive right and license to use the Marks solely in connection with the Licensees' businesses and the services performed therewith within the United States during the term of
this Agreement. 

        (b)   Restrictions on Marks.    In order to ensure the quality of uses under the Marks, and to protect the goodwill
of the Marks, Licensees agree as follows: 

        (i)    Licensees
will only use the Marks in formats approved by Licensor and only in strict association with the Licensees' businesses and the services performed
therewith; and 

        (ii)   Licensees
shall not use any other trademarks, service marks, trade names or logos in close proximity to the Marks or use any trademark or service mark confusingly
similar to the Marks during the term of this Agreement or after the termination of this Agreement. Licensor will not use the Marks in such a manner so as to impair the validity or enforceability or in
any way disparage or dilute the Marks. 

        (c)   Ownership.    Licensor shall own all right, title and interest, including all goodwill relating thereto, in and
to the Marks, and all trademark rights embodied therein shall at all times be solely vested in Licensor. Licensees have no right, title, interest or claim of ownership in the Marks, except for the
licenses granted in this Agreement. All use of the Marks shall inure to the benefit of Licensor. Licensees agree that they will not attack the title of Licensor in and to the Marks. 

        (d)   Estoppel.    Nothing in this Agreement shall be construed as conferring by implication, estoppel, or otherwise
upon Licensees (a) any license or other right under the intellectual property rights of Licensor other than the license granted herein to the Marks as set forth expressly herein or
(b) any license rights other than those expressly granted herein. 

        (e)   Warranties; Disclaimers.

        (i)    The
Licensor represents and warrants that (i) it owns and has the right to license the Marks licensed under this Agreement and (ii) the Marks do not
infringe upon the rights of any third parties. 

5

 

        (ii)   EXCEPT
FOR THE WARRANTIES AND REPRESENTATIONS DESCRIBED IN THIS SECTION 2.6(E), LICENSOR DISCLAIMS ANY AND ALL WARRANTIES, CONDITIONS OR REPRESENTATIONS (EXPRESS
OR IMPLIED, ORAL OR WRITTEN) WITH RESPECT TO THE SUBJECT MATTER HEREOF, OR ANY PART THEREOF, INCLUDING ANY AND ALL IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS OR
SUITABILITY FOR ANY PURPOSE (WHETHER ANY LICENSEE KNOWS, HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE) WHETHER ALLEGED TO ARISE BY LAW, BY REASON OF CUSTOM
OR USAGE IN THE TRADE OR BY COURSE OF DEALING. 

        Section 2.7
Confidential Information.

        (a)   Each
Party hereby agrees that (i) it will not disclose to any third party or use any Confidential Information disclosed to it by the other except as expressly
permitted in this Agreement, and (ii) it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which
will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar type and importance. 

        (b)   Notwithstanding
clause (a) above, each Party may disclose Confidential Information (i) to the extent required by any Governmental Authority or otherwise as
required by applicable Laws, including, without limitation, disclosure obligations imposed under the federal securities laws, provided that such Party has given the other Party prior notice of such
requirement when legally permissible to permit the other Party to take such legal action to prevent the disclosure as it deems reasonable, appropriate or necessary, or (ii) to its consultants,
legal counsel, Affiliates, accountants, banks and other financing sources and their advisors. 

        Section 2.8  Appointment of Independent Registered Public Accounting Firm and Independent Petroleum Engineer.

        (a)   Notwithstanding
anything to the contrary in this Agreement, the Parties hereby recognize and agree that the General Partner shall have the exclusive authority to appoint
an independent registered public accounting firm to audit the financial statements of the Partnership Group and an independent petroleum engineer to provide reports to the Partnership relating to
estimates of proved reserves for Securities and Exchange Commission and other reporting purposes. 

        Section 2.9  No Effect on Partnership Agreement.

        Notwithstanding
anything to the contrary in this Agreement, no provision of this Agreement, the Master Operating Agreement or the Contribution Agreement shall relieve the General Partner
of any obligation or duty to the Partnership, or otherwise modify or amend such obligation or duty, provided for in the Partnership Agreement, the Master Operating Agreement or the Contribution
Agreement. 

 
 

ARTICLE III    
    
    BOOKS, RECORDS AND REPORTING    
    

        Section 3.1
Books and Records.

        EXCO
shall maintain accurate books and records regarding the performance of the Services and its calculation of the Payment Amount, and shall maintain such books and records for the
period required by applicable Laws or accounting practices. 

6

  

        Section 3.2 Audits.

        The
Partnership shall have the right, upon reasonable notice, and at all reasonable times during usual business hours, to audit, examine and make copies of the books and records referred
to in Section 3.1. Such right may be exercised through any agent or employee of the Partnership Group, including, but not limited to, any member of the Audit Committee or the Conflicts
Committee of the board of directors of GP LLC, designated in writing by it or by an independent public accountant, engineer, attorney or other agent so designated. The Partnership shall
bear all costs and expenses incurred in any inspection, examination or audit. EXCO shall review and respond in a timely manner to any claims or inquiries made by the Partnership regarding matters
revealed by any such inspection, examination or audit. 

        Section 3.3  Reports.

        EXCO
shall prepare and deliver to the Partnership any reports provided for in this Agreement and such other reports as the Partnership may reasonably request from time to time regarding
the performance of the Services. 

 
 

ARTICLE IV    
    
    ADMINISTRATIVE SERVICES FEE    
    

        Section 4.1 Administrative Services Fee and Payment Amount.

        (a)   As
remuneration for the provision by EXCO to the Partnership Group of the Services, the Partnership shall on a monthly basis (i) pay EXCO an administrative
services fee of $1,600,000 plus any applicable sales or use taxes, which amount represents EXCO's good-faith estimate of the actual time to be spent by its personnel performing the
Services, plus related expenses (the "Administrative Services Fee") and (ii) reimburse EXCO for all third-party expenses that EXCO incurs
on behalf of the Partnership Group, excluding any expenses that are directly chargeable to wells under the applicable joint operating agreements and the Master Operating Agreement
(the "Expense Reimbursements", together with the Administrative Services Fee, the "Payment
Amount"). For the avoidance of doubt, EXCO will pay all expenses that are directly chargeable to wells under their respective joint operating agreements and the Master
Operating Agreement and the Partnership will reimburse EXCO for such expenses pursuant to the provisions of the Master Operating Agreement. 

        (b)   The
Administrative Services Fee paid EXCO pursuant to Section 4.1 of this Agreement shall be revised in the following circumstances: 

        (i)    If
the Partnership or any other member of the Partnership Group acquires additional assets or disposes of existing assets (including any acquisition or disposition of
the equity of any entity), then EXCO or the Partnership may propose a revised Administrative Services Fee that covers the provision of Services following such acquisition or disposition. With respect
to any revised Administrative Services Fee proposed by EXCO, if the General Partner, on behalf of the Partnership Group and with the concurrence of the Conflicts Committee, agrees to such revised
Administrative Services Fee, then the new estimate of the Administrative Services Fee shall become part of this Agreement and replace the existing Administrative Services Fee. With respect to any
revised Administrative Services Fee proposed by the Partnership (with the concurrence of the Conflicts Committee), if EXCO agrees to such revised Administrative Services Fee, then the new estimate of
the Administrative Services Fee shall become part of this Agreement and replace the existing Administrative Services Fee. The Administrative Services Fee will remain in effect until such time as a new
Administrative Services Fee is approved in accordance with the provisions of this Section 4.1(b) and EXCO shall continue to provide Services pursuant to the terms set
forth herein. 

7

 

        (ii)   EXCO
shall review the Administrative Services Fee on an annual basis and propose a new Administrative Services Fee to the extent necessary to reflect any changes in the
scope of Services, changes in personnel who are performing the Services, changes in the cost of such Services, including changes in compensation of such personnel, and changes in EXCO's good faith
estimate of the time such personnel will spend performing Services on behalf of the Partnership Group. If approved by the General Partner and with the concurrence of the Conflicts Committee, then the
new Administrative Services Fees shall become part of this Agreement and replace the existing Administrative Services Fee until such time as a new Administrative Services Fee is approved in accordance
with the provisions of this Section 4.1(b) and EXCO shall continue to provide Services pursuant to the terms set forth herein. 

        (c)   If
EXCO and the Conflicts Committee are unable to agree on the amount of any revised Administrative Services Fee proposed pursuant to Section 4.1(b), EXCO
and the Partnership will engage a mutually agreed upon independent registered public accounting firm to determine the Administrative Services Fee based on its estimate of the fair value of the
Services provided to the Partnership Group by EXCO. Such independent registered public accounting firm will determine the revised Administrative Services Fee within 30 days of its engagement
and furnish the Partnership and EXCO its determination, which shall be binding on all Parties. The fees of the independent registered public accounting firm will be split equally between EXCO and the
Partnership. 

        Section 4.2
Payment of Payment Amount.

        EXCO
shall invoice the Partnership on or before the 20th day of each month for the estimated Payment Amount for the next succeeding month, plus or minus any adjustment necessary
to correct prior estimated billings to actual billings. Subject to Section 4.3, all invoices shall be due and payable, in immediately available funds, on the last day of the month to which the
invoice relates. Upon the request of the Partnership, EXCO shall furnish a reasonable detail of the Services provided and charges assessed during any month. 

        Section 4.3
Disputed Charges.

        THE
PARTNERSHIP MAY, WITHIN 90 DAYS AFTER RECEIPT OF A CHARGE FROM EXCO, TAKE WRITTEN EXCEPTION TO SUCH CHARGE, ON THE GROUND THAT THE SAME WAS NOT A REASONABLE COST INCURRED BY
EXCO OR ITS AFFILIATES IN CONNECTION WITH THE SERVICES. THE PARTNERSHIP SHALL NEVERTHELESS PAY EXCO IN FULL WHEN DUE THE FULL PAYMENT AMOUNT OWED TO EXCO. SUCH PAYMENT SHALL NOT BE DEEMED A WAIVER OF
THE RIGHT OF THE PARTNERSHIP TO RECOUP ANY CONTESTED PORTION OF ANY AMOUNT SO PAID. HOWEVER, IF THE AMOUNT AS TO WHICH SUCH WRITTEN EXCEPTION IS TAKEN, OR ANY PART THEREOF, IS ULTIMATELY DETERMINED
NOT TO BE A REASONABLE COST INCURRED BY EXCO OR ITS AFFILIATES IN CONNECTION WITH ITS PROVIDING THE SERVICES HEREUNDER, SUCH AMOUNT OR PORTION THEREOF (AS THE CASE MAY BE) SHALL BE REFUNDED BY
EXCO TO THE PARTNERSHIP TOGETHER WITH INTEREST THEREON AT
THE DEFAULT RATE DURING THE PERIOD FROM THE DATE OF PAYMENT BY THE PARTNERSHIP TO THE DATE OF REFUND BY EXCO. 

        Section 4.4
Set Off.

        In
the event that EXCO owes the Partnership a sum certain in an uncontested amount under any other agreement, then any such amounts shall be aggregated and the Partnership and EXCO shall
discharge their respective obligations by netting those amounts against any amounts owed by the Partnership to EXCO under this Agreement. If the Partnership or EXCO owes the other Party a greater
aggregate amount, then that Party shall pay to the other Party the difference between the amounts owed. 

8

 

        Section 4.5
EXCO Employees.

        The
obligations of the Partnership under Sections 4.1 and 4.2, to the extent they relate to Services provided by employees of EXCO or its Affiliates, shall be limited to
the Administrative Services Fee, and the Partnership shall not be obligated to pay directly to EXCO's or its Affiliates' employees any compensation, salaries, wages, bonuses, benefits, social security
taxes, workers' compensation insurance, retirement and insurance benefits, training or other expenses; provided,  however, that the Partnership may, at its
option, compensate such employees under any long-term incentive plan of the Partnership for the
provision of Services hereunder; and provided further, however, that if EXCO fails to pay any employee
providing Services hereunder within 30 days of the date such employee's payment is due: 

        (a)   The
Partnership may (i) pay such employee directly or (ii) employ such employee directly; and 

        (b)   EXCO
shall reimburse the Partnership for the portion of the Administrative Services Fee representing employee compensation that the Partnership paid to EXCO with respect
to such employee but that EXCO did not pay to such employee. 

        Section 4.6
Additional Review and Approvals.

        EXCO
acknowledges that all Expense Reimbursements assessed by EXCO and included in the Payment Amount must be approved by the persons authorized to approve such charges pursuant to the
Partnership's governance processes. Additionally, EXCO acknowledges that the Conflicts Committee may direct the General Partner to modify the scope of Services pursuant to Section 2.3
or to revise the Administrative Services Fee pursuant to Section 4.1(b). In addition to the information EXCO is obligated to maintain and provide pursuant to Article III, EXCO
shall provide such other information as reasonably necessary to determine the accuracy of any estimate relating to the Payment Amount hereunder. 

 
 

ARTICLE V    
    
    FORCE MAJEURE    
    

        Section 5.1 Force Majeure.

        If
any party is rendered unable, wholly or in part, by force majeure to carry out its obligations under this Agreement, other than the obligation to indemnify or make money payments or
furnish security, that party shall give to all other parties prompt written notice of the force majeure with reasonably full particulars concerning it; thereupon, the obligations of the party giving
notice, so far as they are affected by the force majeure, shall be suspended during, but no longer than, the continuance of the force majeure. The term "force majeure", as here employed, shall mean an
act of God, strike, lockout, or other industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm, flood or other act of nature, explosion, governmental action,
governmental delay, restraint or inaction, unavailability of equipment, and any other cause, whether of the kind specifically enumerated above or otherwise, which is not reasonably within the control
of the party claiming suspension. The affected party shall use all reasonable diligence to remove the force majeure situation as quickly as practicable. The requirement that any force majeure shall be
remedied with all reasonable dispatch shall not require the settlement of strikes, lockouts, or other labor difficulty by the party involved, contrary to its wishes; how all such difficulties shall be
handled shall be entirely within the discretion of the party concerned; provided, however, that in the
event of a strike, lockout or other labor dispute involving EXCO, EXCO shall use reasonable efforts to continue to perform all obligations hereunder by utilizing its management personnel and that of
its Affiliates. 

9

 

 
 

ARTICLE VI    
    
    ASSIGNMENT    
    

        Section 6.1 Assignments.

        (a)   Without
the prior consent of EXCO, no member of the Partnership Group may sell, assign, transfer or convey any of its rights, or delegate any of its obligations, under
this Agreement to any Person; provided that any member of the Partnership Group may assign all of its rights, title and interests under this Agreement
to secure debt for borrowed money and other obligations, including guarantees of such debt. 

        (b)   Without
the prior consent of the Partnership, EXCO may not sell, assign, transfer or convey any of its rights, or delegate any of its obligations, under this Agreement
to any Person, other than the delegation of performance of Services to an Affiliate of EXCO or a qualified third party as permitted by Section 2.4 and the sale, assignment, transfer or
conveyance of its rights and obligations hereunder to any such Affiliate. 

        Section 6.2
Other Requirements.

        (a)   EXCO
shall exercise reasonable diligence to obtain the most favorable terms or warranties available from vendors, suppliers and other third parties, and where
appropriate, EXCO shall assign such warranties to the Partnership. 

 
 

ARTICLE VII    
    
    TERMINATION    
    

        Section 7.1 Termination by the Partnership on behalf of the Partnership Group.

        (a)   Upon
the occurrence of any of the following events, the GP LLC, on behalf of the Partnership Group, may terminate this Agreement by giving written notice
of such termination to EXCO: 

        (i)    EXCO
becomes Bankrupt; 

        (ii)   EXCO
dissolves and commences liquidation or winding-up; or 

        (iii)  EXCO
ceases to be an Affiliate of the Partnership. 

Any
termination under this Section 7.1(a) shall become effective immediately upon delivery of the notice first described in this Section 7.1(a), or such later time (not to exceed
the first anniversary of the delivery of such notice) as may be specified by the Partnership. 

        (b)   In
addition to its rights under Section 7.1(a), if at any time the General Partner determines that EXCO has not performed the Services in accordance with the
Service Standard, the Partnership may give written notice of termination to EXCO, which notice shall set forth in reasonable detail the Services in question and the related deficiency in such Services
as compared to the Service Standard. EXCO shall have 90 days following the date of such notice in which to reperform such Services in accordance with the Service Standard or otherwise cure such
deficiency to the reasonable satisfaction of the General Partner. If EXCO fails to reperform such Services or otherwise cure such deficiency in accordance with the immediately preceding sentence, then
termination under this Section 7.1(b) shall become effective on the 90th day after the date of such notice, or such later time (not to exceed the first anniversary
of the delivery of such notice) as may be specified in such notice. 

10

 

        Section 7.2  Termination by EXCO.

        (a)   EXCO
may terminate this Agreement by giving written notice of such termination to the Partnership in the event that EXCO ceases to be an Affiliate of the Partnership.
Any termination under this Section 7.2 shall become effective 90 days after delivery of such notice. 

        (b)   In
addition to its rights under Section 7.1(a), if at any time a Payment Default has occurred and is continuing for a period of more than 30 days, EXCO may
give written notice of termination to the Partnership, which notice shall set forth in reasonable detail the Payment Default. The Partnership shall have 15 days following the date of such
notice in which to cure such Payment Default. If the Partnership fails to cure such Payment Default in accordance with the immediately preceding sentence, then termination under this
Section 7.1(b) shall become effective on the 30th day after the date of such notice, or such later time (not to exceed the first anniversary of the delivery of such
notice) as may be specified in such notice. 

        Section 7.3
Effect of Termination.

        This
Agreement may not be terminated by any Party except as provided in Sections 7.1 or 7.2 or upon the mutual agreement of the Parties with the prior approval of the
Conflicts Committee. If this Agreement is terminated in accordance with Section 7.1 or 7.2, all rights and obligations under this Agreement shall cease except for (a) obligations
that expressly survive termination of this Agreement; (b) liabilities and obligations that have accrued prior to such termination, including the obligation to pay any amounts that have become
due and payable prior to such termination, and (c) the obligation to pay any portion of the Administrative Services Fee that has accrued prior to such termination, even if such portion has not
become due and payable at that time. 

 
 

ARTICLE VIII    
    
    GENERAL PROVISIONS    
    

        Section 8.1 Liabilities and Indemnification.

        (a)   IN
NO EVENT, OTHER THAN FOR LIABILITY ARISING FROM THE BAD FAITH OR WILLFUL MISCONDUCT OF EXCO, SHALL EXCO BE LIABLE TO THE PARTNERSHIP GROUP, DIRECTLY OR INDIRECTLY,
FOR ANY CLAIMS, DEMANDS, SUITS, LOSSES, LIABILITIES, OBLIGATIONS, PAYMENTS, COSTS, EXPENSES OR DAMAGES, WHETHER DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE, OR ANY LOST REVENUES OR PROFITS
(COLLECTIVELY, "DAMAGES"), RESULTING FROM EXCO'S PERFORMANCE OR FAILURE TO PERFORM UNDER THIS AGREEMENT, OR THE FURNISHING, PERFORMANCE OR USE OF
SERVICES PROVIDED HEREUNDER, WHETHER DUE TO BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE OR OTHERWISE, REGARDLESS OF WHETHER OR NOT EXCO WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN
ADVANCE. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING IN ANY RESPECT, AND OTHER THAN FOR LIABILITY ARISING FROM THE BAD FAITH OR WILLFUL MISCONDUCT OF EXCO SHALL FURTHERMORE NOT BE RESPONSIBLE OR
LIABLE TO THE PARTNERSHIP GROUP FOR ANY DAMAGES RESULTING OR ARISING FROM ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY THIRD PARTY INTELLECTUAL PROPERTY (INCLUDING, WITHOUT LIMITATION, SERVICES,
SOFTWARE, HARDWARE OR EQUIPMENT) USED TO PROVIDE SERVICES. 

        (b)   The
Partnership shall indemnify and hold harmless EXCO, its subsidiaries and affiliates and their employees, officers, directors and agents (each, an
"EXCO Indemnified Party") from and against any all third party claims for Damages, as incurred by any EXCO Indemnified Party, relating to or arising out
of the provision of Services by EXCO pursuant to this Agreement, except to the extent that it is finally judicially determined that such Damages resulted from the bad faith or willful misconduct of 

11

 

such
EXCO Indemnified Party. The Partnership shall also reimburse each EXCO Indemnified Party promptly upon request for all reasonable expenses (including reasonable attorneys' fees and expenses) as
they are incurred in connection with the investigation of, preparation for, defense of, or providing evidence in, any action, claim, suit, proceeding or investigation (each and collectively, an
"Action"), directly or indirectly, arising out of, or relating to, this Agreement or the Services, whether or not pending or threatened and whether or
not any EXCO Indemnified Party is a party to such Action. 

        (c)   EXCO
shall indemnify and hold harmless each member of the Partnership Group, its subsidiaries and affiliates and their employees, officers, directors and agents (each, a
"Partnership Group Indemnified Party") from and against any all third party claims for Damages, as incurred by any Partnership Group Indemnified Party,
relating to or arising out of the bad faith or willful misconduct of EXCO in the provision of Services by EXCO pursuant to this Agreement. EXCO shall also reimburse each Partnership Group Indemnified
Party promptly upon request for all reasonable expenses (including reasonable attorneys' fees and expenses) as they are incurred in connection with the investigation of, preparation for, defense of,
or providing evidence in, any Action, directly or indirectly, arising out of, or relating to, the bad faith or willful misconduct of EXCO under this Agreement or the Services, whether or not pending
or threatened and whether or not any Partnership Group Indemnified Party is a party to such Action. 

        Section 8.2  Relationship of Parties.

        EXCO
shall perform the Services as an independent contractor and no relationship of partnership, joint venture, employment, franchise, agency or similar arrangement is being created
pursuant to or by virtue of this Agreement. 

        Section 8.3
No Warranty.

        EXCEPT
AS EXPRESSLY PROVIDED IN THIS AGREEMENT, ALL SERVICES CONTEMPLATED BY THIS AGREEMENT WILL BE PROVIDED BY EXCO "AS IS," WITH NO WARRANTIES OR REPRESENTATIONS OF ANY KIND
WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THOSE RELATING TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, TITLE, PERFORMANCE OR RESULTS. 

        Section 8.4
Notices.

        All
notices or other communications required or permitted under, or otherwise in connection with, this Agreement must be in writing and must be given by depositing same in the mail,
addressed to the Person to be notified, postpaid and registered or certified with return receipt requested or by transmitting by national overnight courier or by transmitting by national overnight
courier or by delivering such notice in person or by facsimile to such Party. Notice given by mail, national overnight courier or personal delivery shall be effective upon actual receipt. Notice given
by facsimile shall be effective upon confirmation of receipt when transmitted by facsimile if transmitted during the recipient's normal business hours or at the beginning of the recipient's next
business day after receipt if not transmitted during the recipient's normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address, in
each case as follows: 

if
to any member of the Partnership Group: 

c/o
EXCO GP Partners, LP

12377 Merit Drive, Suite 1700

Dallas, TX 75251

Attention: General Counsel

Fax: (214) 706-3409 

12

 

if
to EXCO: 

EXCO
Resources, Inc.

12377 Merit Dr., Suite 1700

Dallas, TX 75251

Attention: General Counsel

Fax: (214) 706-3409 

        Section 8.5  Further Action.

        The
Parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of
this Agreement. 

        Section 8.6
Binding Effect.

        This
Agreement shall be binding upon and inure to the benefit of the Parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns. 

        Section 8.7
Integration.

        This
Agreement, the Master Operating Agreement and any joint operating agreements relating to the Business of the Partnership Group constitute the entire Agreement among the Parties
hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto. 

        Section 8.8  Creditors.

        Except
for permitted assignees under Section 6.1, none of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the
Partnership. 

        Section 8.9
Waiver.

        No
failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach
thereof shall constitute waiver of any such breach of any other covenant, duty, agreement or condition. 

        Section 8.10
Counterparts.

        This
Agreement may be executed in counterparts, all of which together shall constitute an agreement binding on all the Parties hereto, notwithstanding that all such Parties are not
signatories to the original or the same counterpart. Each Party shall become bound by this Agreement immediately upon affixing its signature hereto. 

        Section 8.11  Applicable Law.

        This
Agreement shall be construed in accordance with and governed by the Laws of the State of Texas, without regard to the principles of conflicts of law. 

        Section 8.12
Invalidity of Provisions.

        If
any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby. 

        Section 8.13
Amendment or Modification.

        This
Agreement may be amended or modified from time to time only by the written agreement of all the Parties hereto; provided,  however, that, if at the time of
such amendment or modification the limited partner interests of the Partnership are listed or traded on an "exchange"
as defined in Section 3(a)(1) of the Securities Exchange Act of 1934, as amended, such amendment or modification 

13

 

must
be approved by the Conflicts Committee unless the General Partner determines in good faith that such amendment or modification will not adversely affect the Limited Partners in any material
respect. 

        Section 8.14
Directly or Indirectly.

        Where
any provision of this Agreement refers to action to be taken by any Party, or which such Party is prohibited from taking, such provision shall be applicable whether such action is
taken directly or indirectly by such Party, including actions taken by or on behalf of any Affiliate of such Party. 

        Section 8.15
Rights of Limited Partners.

        The
provisions of this Agreement are enforceable solely by the Parties to this Agreement, and no Limited Partner shall have the right, separate and apart from the Partnership, to enforce
any provision of this Agreement or to compel any Party to this Agreement to comply with the terms of this Agreement. 

14

        IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Effective Date. 

	

 	
 	
EXCO PARTNERS GP LP, LLC
	

 	
 	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	
EXCO GP PARTNERS, LP
	

 	
 	

By:	
 	

EXCO PARTNERS GP LP, LLC,

its general partner
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	
EXCO PARTNERS, LP
	

 	
 	

By:	
 	

EXCO GP Partners, LP,

its general partner
	

 	
 	

By:	
 	

EXCO PARTNERS GP LP, LLC,

its general partner
	

 	
 	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	
EXCO PARTNERS OPERATING GP, LLC
	

 	
 	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	
EXCO PARTNERS OPERATING MLP, LP
	

 	
 	

By:	
 	

EXCO PARTNERS OPERATING GP, LLC,

its general partner
	

 	
 	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	
EXCO RESOURCES, INC.
	

 	
 	

By:	
 	

 Name:

Title:

  

SCHEDULE I  

 
  Services    
    

	1.
	Financial
Reports (including SEC reporting and accounting)

	2.
	Information
Technology

	3.
	Land
Management

	4.
	Legal

	5.
	Operations/Reservoir
Engineering/Geology/Geophysics, including any such services to be provided in the Master Operating Agreement or any third party operating agreement applicable to
the Partnership Properties.

	6.
	Risk
Management

	7.
	Corporate
Development

	8.
	Treasury

	9.
	Tax

	10.
	Audit

	11.
	Sarbanes-Oxley
Compliance

	12.
	Investor
Relations

	13.
	General
Management, Administrative and Other 

I-1

   ANNEX A  

[TO BE PROVIDED]

A-1

QuickLinks

FORM OF ADMINISTRATIVE SERVICES AGREEMENT AMONG EXCO PARTNERS GP LP, LLC, EXCO GP PARTNERS, LP, EXCO PARTNERS, LP, EXCO PARTNERS OPERATING GP, LLC, EXCO PARTNERS OPERATING MLP, LP, AND EXCO RESOURCES,
INC.

ADMINISTRATIVE SERVICES AGREEMENT

RECITALS

ARTICLE I DEFINITIONS

ARTICLE II RETENTION OF EXCO; SCOPE OF SERVICES

ARTICLE III BOOKS, RECORDS AND REPORTING

ARTICLE IV ADMINISTRATIVE SERVICES FEE

ARTICLE V FORCE MAJEURE

ARTICLE VI ASSIGNMENT

ARTICLE VII TERMINATION

ARTICLE VIII GENERAL PROVISIONS

ServicesQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.5  

FORM OF  

 TAX SHARING AGREEMENT  

 BY AND AMONG  

 EXCO RESOURCES, INC.  

 AND  

 EXCO PARTNERS, LP  

                                    , 2008  

 
 

TABLE OF CONTENTS    
    

	 
	 
	 	Page

	 ARTICLE I

Definitions	 	 
	
 1.1	

Definitions.	
 	

1
	
 ARTICLE II

Preparation and Filing of Tax Returns	
 	

 
	
 2.1	

Manner of Filing.	
 	

3
	2.2	Franchise Tax Taxable Period.	 	3
	
 ARTICLE III

Allocation of Taxes	
 	

 
	
 3.1	

Liability of the Partnership Group for Combined Taxes.	
 	

3
	3.2	Partnership Group Combined Tax Liability.	 	3
	3.3	Preparation and Delivery of Pro Forma Tax Returns.	 	4
	3.4	Payment of Tax.	 	4
	3.5	Subsequent Changes in Treatment of Tax Items.	 	4
	
 ARTICLE IV

Control of Tax Proceedings; Cooperation and Exchange of Information	
 	

 
	
 4.1	

Control of Proceedings.	
 	

4
	4.2	Cooperation and Exchange of Information.	 	5
	
 ARTICLE V

Warranties and Representations; Payment Obligations	
 	

 
	
 5.1	

Warranties and Representations Relating to Actions of EXCO and the Partnership.	
 	

5
	5.2	Calculation of Payment Obligations.	 	6
	5.3	Prompt Performance.	 	6
	5.4	Interest.	 	6
	5.5	Tax Records.	 	6
	5.6	Continuing Covenants.	 	6
	
 ARTICLE VI

Miscellaneous Provisions	
 	

 
	
 6.1	

Notice.	
 	

7
	6.2	Required Payments.	 	7
	6.3	Injunctions.	 	7
	6.4	Further Assurances.	 	7
	6.5	Parties in Interest.	 	7
	6.6	Setoff.	 	7
	6.7	Change of Law.	 	8
	6.8	Termination and Survival.	 	8
	6.9	Amendments; No Waivers.	 	8
	6.10	Governing Law and Interpretation.	 	8
	6.11	Resolution of Certain Disputes.	 	8
	6.12	Confidentiality.	 	8
	6.13	Costs, Expenses and Attorneys' Fees.	 	9
	6.14	Counterparts.	 	9
	6.15	Severability.	 	9
	6.16	Entire Agreement.	 	9
	6.17	Assignment..	 	9
	 	 	 	 

	6.18	Fair Meaning.	 	9
	6.19	Titles and Headings.	 	10
	6.20	Construction.	 	10

  

 
 

TAX SHARING AGREEMENT    
    

        Tax Sharing Agreement (the "Agreement"), dated
this                        day
of                                    , 2008, by and
among EXCO RESOURCES, INC. ("EXCO"), a Texas corporation, and EXCO Partners, LP
(the "Partnership"), a Delaware limited partnership. 

RECITALS  

        WHEREAS, EXCO is the common parent of an affiliated group of corporations within the meaning of Section 1504(a) of the Code (as defined below),
which currently files a consolidated U.S. federal income tax return; 

        WHEREAS,
the Partnership Group (as defined below) includes various entities that may be required to join with EXCO in the filing of a consolidated, combined or unitary state
tax return; 

        WHEREAS,
the Parties wish to set forth the general principles under which they will allocate and share various Taxes (as defined below) and related liabilities; 

        WHEREAS,
EXCO, on behalf of itself and its present and future subsidiaries other than the Partnership Group ("EXCO Group"), and the
Partnership, on behalf of itself and its present and future subsidiaries (the "Partnership Group"), are entering into this Agreement to provide
for the allocation among the EXCO Group and the Partnership Group of all responsibilities, liabilities and benefits relating to any Tax (as defined below) for which a Combined Return
(as defined below) is filed for a taxable period including or beginning on or after the Effective Date (as defined below) and to provide for certain other matters; 

        NOW,
THEREFORE, in consideration of the mutual agreements, provisions, and covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties hereby agree as follows: 

 
 

ARTICLE I    
    Definitions    
    

        1.1    Definitions.    The following terms shall have the following meanings (such meanings to
be equally applicable to both the singular and the plural forms of the terms defined): 

        "Accounting Referee" is defined in Section 6.11 herein. 

        "Code" means the Internal Revenue Code of 1986, as amended, or any successor thereto, as in effect for the taxable period
in question. 

        "Combined Group" means a group of corporations or other entities that files a Combined Return. 

        "Combined Return" means any Tax Return (other than a Tax Return for U.S. federal income taxes) filed on a consolidated, combined
(including nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination), or unitary basis that includes activities of any member of
the EXCO Group and any member of the Partnership Group. 

        "Effective Date" means 7:00 a.m.
on                                    , 2008. 

        "EXCO Group" is defined in the Recitals to this Agreement. 

        "Final Determination" means the final resolution of any Tax (or other matter) for a taxable period, including related interest or
penalties, that, under applicable law, is not subject to further appeal, review or modification through proceedings or otherwise, including (i) by the expiration of a statute of limitations or
a period for the filing of claims for refunds, amending Tax Returns, appealing from adverse determinations, or recovering any refund (including by offset), (ii) by a decision, judgment, decree,
or other order by a court of competent jurisdiction, which has become final and unappealable, 

1

 

(iii) by
a closing agreement, an accepted offer in compromise, or a comparable agreement under laws of the particular Tax Authority, (iv) by execution of a form under the laws of a Tax
Authority that is comparable to an Internal Revenue Service Form 870 or 870-AD (excluding, however, with respect to a particular Tax Item for a particular taxable period any
such form that reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund and/or the right of the Tax Authority to assert a further deficiency
with respect to such Tax Item for such period), or (v) by any allowance of a refund or credit, but only after the expiration of all periods during which such refund may be adjusted. 

        "Notice" is defined in Section 6.1 herein. 

        "Partnership Group" is defined in the recitals to this Agreement. 

        "Partnership Group Combined Tax Liability" means, with respect to any Tax, the Partnership Group's liability for such Tax owed with
respect to a Combined Return for a taxable period, as determined under Section 3.2 of this Agreement. 

        "Partnership Group Deposit" is defined in Section 3.4 herein. 

        "Partnership Group Members" means those entities included in the Partnership Group. 

        "Partnership Group Pro Forma Combined Return" means a pro forma Combined Return or other schedule prepared pursuant to
Section 3.2 of this Agreement. 

        "Party" means each of EXCO and the Partnership, and solely for purposes of this definition, "EXCO" includes the EXCO Group and the
"Partnership" includes the Partnership Group. Each of EXCO and the Partnership shall cause the EXCO Group and the Partnership Group, respectively, to comply with this Agreement. 

        "Tax Attribute" means a Tax Item of a member of the Partnership Group reflected on a Combined Return that is comparable to one or more of
the following attributes with respect to a U.S. federal income tax consolidated tax return: a net operating loss, a net capital loss, an unused investment credit, an unused foreign tax credit,
an excess charitable contribution, a U.S. federal minimum tax credit or a U.S. federal general business credit (but not tax basis or earnings and profits). 

        "Tax Authority" means a domestic governmental authority (other than the United States) or any subdivision, agency, commission or
authority thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (excluding the U.S. Internal Revenue
Service). 

        "Tax Controversy" means any audit, examination, dispute, suit, action, litigation or other judicial or administrative proceeding initiated
by EXCO or the Partnership or any Tax Authority. 

        "Tax Item" means any item of income, gain, loss, deduction or credit, or other item reflected on a Tax Return or any Tax Attribute. 

        "Tax Return" means any return, report, certificate, form or similar statement or document (including any related or supporting information
or schedule attached thereto and any information return, amended Tax Return, claim for refund or declaration of estimated tax) required to be supplied to, or filed with, a Tax Authority in connection
with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax. 

        "Tax" means any of the Taxes. 

        "Taxes" means all forms of taxation, whenever created or imposed, and whether imposed by a domestic, local, municipal, governmental,
state, federation or other body, but excluding taxes imposed by the United States, and without limiting the generality of the foregoing, shall include net income, alternative or
add-on minimum, gross income, sales, use, ad valorem, gross receipts, value added, 

2

 

franchise,
profits, license, transfer, recording, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profit, custom duty, or other tax, governmental
fee or other like assessment or charge of any kind whatsoever, together with any related interest, penalties, or other additions to tax, or additional amounts imposed by any such Tax Authority. 

        Any
term used but not capitalized herein that is defined in the Code or in the Treasury Regulations thereunder shall, to the extent required by the context of the provision at issue,
have the meaning assigned to it in the Code or such regulation. 

 
 

ARTICLE II    
    Preparation and Filing of Tax Returns    
    

        2.1    Manner of Filing.    

        (a)   For
periods that include the Effective Date and periods after the Effective Date, EXCO shall have the sole and exclusive responsibility for the preparation and filing
of, and shall prepare and file, all Combined Returns or cause to be prepared and filed all Combined Returns. EXCO shall be authorized to take any and all action necessary or incidental to the
preparation and filing of a Combined Return, including, without limitation, (i) making elections and adopting accounting methods, (ii) filing all extensions of time, including extensions
of time for payment of tax, (iii) filing claims for refund or credit, or (iv) giving waivers or bonds. 

        (b)   For
periods that include the Effective Date and periods after the Effective Date, the Partnership Group shall have the sole and exclusive responsibility for the
preparation and filing of, and shall prepare and file or cause to be prepared and filed, all Tax Returns of the Partnership Group Members that are not Combined Returns. 

        (c)   EXCO
shall have sole discretion to include, or cause to be included, in a Combined Return for any Tax any member of the Partnership Group for which inclusion in such
Combined Return is elective; provided, however, that the Partnership Group Combined Tax Liability for any period shall not exceed the aggregate of (x) each such elective Partnership Group
Member's liability for such Tax for such period, computed as if such Partnership Group Member were not included in such Combined Return and (y) the Partnership Group Combined Tax Liability
calculated for the Partnership Group Members for which inclusion is not elective. EXCO shall provide pro forma Tax Returns pursuant to Section 3.5 of this Agreement to support the
calculation of the amount of any decrease in the Partnership Group Combined Tax Liability pursuant to this Section 2.1(c). 

        2.2    Franchise Tax Taxable Period.    References to "taxable period" for any franchise or
other doing business Tax shall mean the taxable period during which the income, operations, assets or capital comprising the base of such Tax is measured, regardless of whether the right to do
business for another taxable period is obtained by the payment of such franchise Tax. 

 
 

ARTICLE III    
    Allocation of Taxes    
    

        3.1    Liability of the Partnership Group for Combined Taxes.    For each Tax for each taxable
period that includes or begins on or after the Effective Date and for which a Combined Return is filed, the Partnership Group Members included in such Combined Return shall be liable to EXCO for an
amount equal to the Partnership Group Combined Tax Liability in respect of such Tax. 

        3.2    Partnership Group Combined Tax Liability.    With respect to each Tax for each taxable
period that includes or begins on or after the Effective Date and for which a member of the Partnership Group is included in a Combined Return, the Partnership Group Combined Tax Liability for such
Tax 

3

 

for
such taxable period shall be the Tax for such taxable period as determined on a Partnership Group Pro Forma Combined Return prepared: 

        (a)   by
including only the Tax Items of the members of the Partnership Group that are included in the Combined Return and computing the liability of the Partnership Group
Members for such Tax as if such Partnership Group Members were included in a separate consolidated or unitary group; 

        (b)   except
as provided in Section 3.2(e) hereof, using all elections, accounting methods and conventions used on the Combined Return for such period; 

        (c)   applying
the Tax rate in effect for the Combined Return of the Combined Group for such taxable period; 

        (d)   assuming
that the Partnership Group elects not to carry back any net operating losses; and 

        (e)   assuming
that the Partnership Group's utilization of any Tax Attribute carryforward or carryback is limited to the Tax Attributes of the Partnership Group that would be
available if the Partnership Group Combined Tax Liability for each taxable period ending after January 1, 2008 were determined in accordance with this Section 3.2. 

        3.3    Preparation and Delivery of Pro Forma Tax Returns.    Not later than
90 days following the date on which a Combined Return is filed with the appropriate Tax Authority, EXCO shall prepare and deliver to the Partnership the related Partnership Group
Pro Forma Combined Return calculating the Partnership Group Combined Tax Liability attributable to the period covered by such filed Combined Return. 

        3.4    Payment of Tax.    EXCO shall timely pay (or shall cause to be timely paid) any
Tax reflected on a Combined Return and hold harmless the Partnership for all liability for such Tax. In the event EXCO is required to make an estimated payment or deposit of any Tax of any Combined
Group which includes any member of the Partnership Group, EXCO shall calculate the portion, if any, of such estimated payment or deposit attributable to the Partnership Group using a methodology
similar to that described in Section 3.2 (the "Partnership Group Deposit") and shall present such calculation to the Partnership. Within
5 days thereafter, the Partnership shall pay the Partnership Group Deposit to EXCO. Within 30 days after delivery by EXCO of a Partnership Group Pro Forma Combined Return to the
Partnership calculating the Partnership Group Combined Tax Liability with respect to a Combined Return, the Partnership shall pay to EXCO such Partnership Group Combined Tax Liability less the amount
of any Partnership Group Deposit relating to the same Combined Return. 

        3.5    Subsequent Changes in Treatment of Tax Items.    With respect to any Combined Return
for any taxable period beginning on or after the Effective Date, in the event of a change in the treatment of any Tax Item of any member of a Combined Group as a result of a Final Determination,
within 30 days following such Final Determination (i) EXCO shall calculate the change, if any, to the Partnership Group Combined Tax Liability resulting from such change,
(ii) EXCO shall pay any decrease in the Partnership Group Combined Tax Liability to the Partnership, and (iii) the Partnership shall pay any increase in the Partnership Group Combined
Tax Liability to EXCO. 

 
 

ARTICLE IV    
    Control of Tax Proceedings; Cooperation and Exchange of Information    
    

        4.1    Control of Proceedings.    Except as provided in this Article IV, EXCO shall
have full responsibility and discretion in handling, settling or contesting any Tax Controversy involving a Tax Return for which it has filing responsibility under this Agreement as well as all Tax
Returns for all taxable periods ending before the Effective Date. The Partnership shall have full responsibility and 

4

 

discretion
in handling, settling or contesting any Tax Controversy involving a Tax Return for which it has filing responsibility under this Agreement. Except as otherwise provided in this
Article IV, any costs incurred in handling, settling or contesting any Tax Controversy shall be borne by the Party having full responsibility and discretion thereof. 

        4.2    Cooperation and Exchange of Information.    

        (a)   Each
Party shall cooperate fully at such time and to the extent reasonably requested by any other Party in connection with the preparation and filing of any Tax Return
or claim for refund, or the conduct of any audit, dispute, proceeding, suit or action concerning any issues or other matters considered in this Agreement. Such cooperation shall include, without
limitation, the following: (i) the retention and provision on demand of Tax Returns, books, records (including those concerning ownership and Tax basis of property which a Party may possess),
documentation or other information relating to the Tax Returns, including accompanying schedules, related workpapers, and documents relating to rulings or other determinations by Taxing Authorities,
until the expiration of the applicable statute of limitations (giving effect to any extension, waiver or mitigation thereof); (ii) the provision of additional information, including an
explanation of material provided under clause (i) of this Section 4.2(a), to the extent such information is necessary or reasonably helpful in connection with the foregoing;
(iii) the execution of any document that may be necessary or reasonably helpful in connection with the filing of a Tax Return by EXCO, the Partnership or of their respective subsidiaries, or in
connection with any audit, dispute, proceeding, suit or action; and (iv) such Party's commercially reasonable efforts to obtain any documentation from a governmental authority or a third party
that may be necessary or reasonably helpful in connection with any of the foregoing. 

        (b)   Each
Party shall make its employees and facilities available on a reasonable and mutually convenient basis in connection with any of the foregoing matters. 

        (c)   If
any Party fails to provide any information requested pursuant to Section 4.2 hereof within a reasonable period, as determined in good faith by the Party
requesting the information, then the requesting Party shall have the right to engage a public accounting firm to gather such information, provided that 30 days' prior written notice is given to
the unresponsive Party. If the unresponsive Party fails to provide the requested information within 30 days of receipt of such notice, then such unresponsive Party shall permit the requesting
Party's public accounting firm full access to all appropriate records or other information as reasonably necessary to comply with this Section 4.2 and shall reimburse the requesting
Party or pay directly all costs connected with the requesting Party's engagement of the public accounting firm. 

 
 

ARTICLE V    
    Warranties and Representations; Payment Obligations    
    

        5.1    Warranties and Representations Relating to Actions of EXCO and the Partnership.    Each
of EXCO and the Partnership warrants and represents to the other that: 

        (a)   in
the case of EXCO, it is a corporation duly organized, validly existing and in good standing under the laws of the State of Texas and has all requisite power to carry
out the transactions contemplated by this Agreement; 

        (b)   in
the case of the Partnership, it is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware and has all
requisite power to carry out the transactions contemplated by this Agreement; 

        (c)   it
has duly and validly taken all action necessary to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions
contemplated hereby; 

5

 

        (d)   this
Agreement has been duly executed and delivered by it and constitutes its legal, valid and binding obligation enforceable in accordance with its terms subject, as to
the enforcement of remedies, to (i) applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors' rights generally from time to
time in effect and (ii) to general principles of equity, whether enforcement is sought in a proceeding at law or in equity; and 

        (e)   the
execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, or the compliance with any of the provisions of this Agreement
will not (i) conflict with or result in a breach of any provision of its certificate of incorporation, by-laws, certificate of limited partnership, limited partnership agreement or
general partnership agreement, (ii) breach, violate or result in a default under any of the terms of any agreement or other instrument or obligation to which it is a party or by which it or any
of its properties or assets may be bound, or (iii) violate any
order, writ, injunction, decree, statute, rule or regulation applicable to it or affecting any of its properties or assets. 

        5.2    Calculation of Payment Obligations.    Except as otherwise provided under this
Agreement, to the extent that the payor Party has a payment obligation to the payee Party pursuant to this Agreement, the payee Party shall provide the payor Party with its calculation of the amount
of such obligation. The documentation of such calculation shall provide sufficient detail to permit the payor Party to reasonably understand the calculation. All payment obligations shall be made to
the payee Party or to the appropriate Tax Authority as specified by the payee Party within 30 days after delivery by the payee Party to the payor Party of written notice of a payment
obligation. Any disputes with respect to payment obligations shall be resolved in accordance with Section 6.11 below. 

        5.3    Prompt Performance.    All actions required to be taken by any Party under this
Agreement shall be performed within the time prescribed for performance in this Agreement, or if no period is prescribed, such actions shall be performed promptly. 

        5.4    Interest.    Payments pursuant to this Agreement that are not made within the period
prescribed therefor in this Agreement shall bear interest (compounded daily) from and including the date immediately following the last date of such period through and including the date of payment at
a rate equal to the U.S. federal short-term rate or rates established pursuant to Section 6621 of the Code for the period during which such payment is due but unpaid. 

        5.5    Tax Records.    The Parties to this Agreement hereby agree to retain and provide on
proper demand by any Tax Authority (subject to any applicable privileges) the books, records, documentation and other information relating to any Tax Return until the later of (a) the
expiration of the applicable statute of limitations (giving effect to any extension, waiver or mitigation thereof), (b) the date specified in an applicable records retention agreement entered
into with a Tax Authority, (c) a Final Determination made with respect to such Tax Return and (d) the final resolution of any claim made under this Agreement for which such information
is relevant. 

        5.6    Continuing Covenants.    Each Party agrees (1) not to take any action reasonably
expected to result in a new or changed Tax Item that is detrimental to any other Party and (2) to take any action reasonably requested by any other Party that would reasonably be expected to
result in a new or changed Tax Item that produces a benefit or avoids a detriment to such other Party; provided that such action does not result in any additional cost not fully compensated for by the
requesting Party. The Parties hereby acknowledge that the preceding sentence is not intended to limit, and therefore shall not apply to, the rights of the Parties with respect to matters otherwise
covered by this Agreement. 

6

 

 
 

ARTICLE VI    
    Miscellaneous Provisions    
    

        6.1    Notice.    Any notice, demand, claim, or other communication required or permitted to
be given under this Agreement (a "Notice") shall be in writing and may be personally served provided a receipt is obtained therefor, or may be
sent by certified mail return receipt requested postage prepaid, to the Parties at the following addresses (or at such other address as one Party may specify by notice to any
other Party): 

	EXCO at:	 	EXCO Resources, Inc.

12377 Merit Drive, Suite 17000 LB 82

Dallas, TX 75251

Attention: General Counsel

Fax: (214) 706-3409
	

Partnership at:	
 	

EXCO Partners, LP

c/o EXCO Partners GP LP, LLC

12377 Merit Drive, Suite 17000 LB 82

Dallas, TX 75251

Attention: General Counsel

Fax: (214) 706-3409

        A
Notice which is delivered personally shall be deemed given as of the date specified on the written receipt therefor. A Notice mailed as provided herein shall be deemed given on the
third business day following the date so mailed. Notification of a change of address may be given by any Party to another in the manner provided in this Section 6.01 for providing
a Notice. 

        6.2    Required Payments.    Unless otherwise provided in this Agreement, any payment of Tax
required shall be due within 30 days of a Final Determination of the amount of such Tax. 

        6.3    Injunctions.    The Parties acknowledge that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. The Parties hereto shall be entitled to an injunction or
injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court having jurisdiction, such remedy being in
addition to any other remedy to which they may be entitled at law or in equity. 

        6.4    Further Assurances.    Subject to the provisions hereof, the Parties hereto shall make,
execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to
consummate the transactions contemplated hereby. Subject to the provisions hereof, each of the Parties shall, in connection with entering into this Agreement, perform its obligations hereunder and
take any and all actions relating hereto, comply with all applicable laws, regulations, orders, and decrees, obtain all required consents and approvals and make all required filings with any
governmental agency, other regulatory or administrative agency, commission or similar authority and promptly provide the other Parties with all such information as such Parties may reasonably request
in order to be able to comply with the provisions of this sentence. 

        6.5    Parties in Interest.    Except as herein otherwise specifically provided, nothing in
this Agreement expressed or implied is intended to confer any right or benefit upon any person, firm or corporation other than the Parties and their respective successors and permitted assigns. 

        6.6    Setoff.    Except as provided by Section 2.01(c) of this Agreement, all payments
to be made under this Agreement shall be made without setoff, counterclaim or withholding, all of which are expressly waived. 

7

 

        6.7    Change of Law.    If, due to any change in applicable law or regulations or the
interpretation thereof by any court of law or other governing body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any transaction
contemplated hereby shall become impracticable or impossible, the Parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such provision. 

        6.8    Termination and Survival.    Notwithstanding anything in this Agreement to the
contrary, this Agreement shall remain in effect and its provisions shall survive for the full period of all applicable statutes of limitation (giving effect to any extension, waiver or mitigation
thereof) or until otherwise agreed to in writing by EXCO and the Partnership, or their successors. 

        6.9    Amendments; No Waivers.    

        (a)   Any
provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by EXCO and the
Partnership, or in the case of a waiver, by the Party against whom the waiver is to be effective. 

        (b)   No
failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

        6.10    Governing Law and Interpretation.    This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware applicable to agreements made and to be performed in the State of Delaware. 

        6.11    Resolution of Certain Disputes.    Any disagreement between the Parties with respect
to any matter that is the subject of this Agreement, including, without limitation, any disagreement with respect to any calculation or other determinations by EXCO hereunder, which is not resolved by
mutual agreement of the Parties, shall be resolved by a nationally recognized independent accounting firm chosen by and mutually acceptable to the Parties hereto
(an "Accounting Referee"). Such Accounting Referee shall be chosen by the Parties within fifteen (15) business days from the date on which
one Party serves written notice on another Party requesting the appointment of an Accounting Referee, provided that such notice specifically describes the calculations to be considered and resolved by
the Accounting Referee. In the event the Parties cannot agree on the selection of an Accounting Referee, then the Accounting Referee shall be any office or branch of the public accounting firm of
KPMG LLP. The Accounting Referee shall resolve any such disagreements as specified in the notice within 30 days of appointment; provided, however, that no Party shall be required to
deliver any document or take any other action pursuant to this Section 6.11 if it determines that such action would result in the waiver of any legal privilege or any detriment to its business.
Any resolution of an issue submitted to the Accounting Referee shall be final and binding on the Parties hereto without further recourse. The Parties shall share the costs and fees of the Accounting
Referee equally. 

        6.12    Confidentiality.    Except to the extent required to protect a Party's interests in a
Tax Controversy, each Party shall hold and shall cause its consultants and advisors to hold in strict confidence, unless compelled to disclose by judicial or administrative process or, in the opinion
of its counsel, by other requirements of law, all information (other than any such information relating solely to the business or affairs of such Party) concerning another Party or its representatives
pursuant to this Agreement (except to the extent that such information can be shown to have been (i) previously known by the Party to which it was furnished, (ii) in the public domain
through no fault of such Party, or (iii) later lawfully acquired from other sources by the Party to which it was furnished), and each Party shall not release or disclose such information to any
other person, except its auditors, attorneys, financial advisors, bankers and other consultants and advisors who shall be advised of the provisions of this Agreement. Each Party shall be deemed to
have satisfied its obligation to hold confidential 

8

 

information
concerning or supplied by another Party if it exercises the same care as it takes to preserve confidentiality for its own similar information. 

        6.13    Costs, Expenses and Attorneys' Fees.    Except as expressly set forth in this
Agreement, each Party shall bear its own costs and expenses incurred pursuant to this Agreement. In the event a Party to this Agreement brings an action or proceeding for the breach or enforcement of
this Agreement, the prevailing party in such action, proceeding, or appeal, whether or not such action, proceeding or appeal proceeds to final judgment, shall be entitled to recover as an element of
its costs, and not as damages, such reasonable attorneys' fees as may be awarded in the action, proceeding or appeal in addition to whatever other relief the prevailing party may be entitled. For
purposes of this Section 6.13, the "prevailing party" shall be the Party who is entitled to recover its costs; a Party not entitled to recover its costs shall not recover attorneys' fees. No
sum for attorneys' fees shall be counted in calculating the amount of the judgment for purposes of determining whether a Party is entitled to recover its costs or attorneys' fees. 

        6.14    Counterparts.    This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 

        6.15    Severability.    The Parties hereby agree that, if any provision of this Agreement
should be adjudicated to be invalid or unenforceable, such provision shall be deemed deleted herefrom with respect, and only with respect, to the operation of such provision in the particular
jurisdiction in which such adjudication was made, and only to the extent of the invalidity, and any such invalidity or unenforceability in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. All other remaining provisions of this Agreement shall remain in full force and effect for the particular jurisdiction and all other
jurisdictions. 

        6.16    Entire Agreement.    

        (a)   This
Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes all other agreements, whether or not written,
in respect of any Tax between the EXCO Group and the Partnership Group. 

        (b)   In
the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of any other agreement between the EXCO Group and the
Partnership Group the provisions of this Agreement shall take precedence and to such extent shall be deemed to supersede such conflicting provisions under the other agreement. 

        6.17    Assignment.    This Agreement is being entered into by EXCO and the Partnership on
behalf of themselves and each member of the EXCO Group and the Partnership Group. This Agreement shall constitute a direct obligation of each such member and shall be deemed to have been readopted and
affirmed on behalf of any entity that becomes a member of the EXCO Group or the Partnership Group in the future. Each of EXCO and the Partnership hereby guarantee the performance of all actions,
agreements and obligations provided for under this Agreement of each member of the EXCO Group and the Partnership Group, respectively. Each of EXCO and the Partnership shall, upon the written request
of the other, cause any of their respective group members to formally execute this Agreement. This Agreement shall be binding upon, and shall inure to the benefit of, the successors, assigns and
persons controlling any of the entities bound hereby for so long as such successors, assigns or controlling persons are members of the EXCO Group or the Partnership Group or their successors
and assigns. 

        6.18    Fair Meaning.    This Agreement shall be construed in accordance with its fair meaning
and shall not be construed strictly against the drafter. 

9

 

        6.19    Titles and Headings.    Titles and headings to sections herein are inserted for the
convenience of reference only and are not intended to be a part or to affect the meaning or interpretation of this Agreement. 

        6.20    Construction.    In this Agreement, unless the context otherwise requires the terms
"herein," "hereof," and "hereunder" refer to this Agreement. 

10

        IN
WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement as of the day and year first above written. 

	 	 	EXCO RESOURCES, INC.
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

	

 	
 	

EXCO PARTNERS, LP
	

 	
 	

By:	

EXCO GP Partners, LP,

its general partner
	

 	
 	

By:	

EXCO Partners GP LP, LLC,

its general partner
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	Title:	    

Signature Page to Tax Sharing Agreement  

QuickLinks

TABLE OF CONTENTS

TAX SHARING AGREEMENT

ARTICLE I Definitions

ARTICLE II Preparation and Filing of Tax Returns

ARTICLE III Allocation of Taxes

ARTICLE IV Control of Tax Proceedings; Cooperation and Exchange of Information

ARTICLE V Warranties and Representations; Payment Obligations

ARTICLE VI Miscellaneous Provisions

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