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Exhibit 10.15    
    

 
  EXECUTION COPY    
    

 
  SECOND RESTATED UNLIMITED GUARANTY    
    

        THIS SECOND RESTATED UNLIMITED GUARANTY ("Guaranty") is made as of the 27th day of January, 2004, by
Guarantors (as hereinafter defined) in favor of Agent (as hereinafter defined) for the benefit of Lenders (as hereinafter defined) under the Credit Agreement referred to below. 

        1.     Definitions. As used in this Guaranty, the following terms shall have the meanings indicated below: 

        (a)   The
term "Lenders" shall mean BANK ONE, NA, CANADA BRANCH ("Bank One"), and the other Lenders that are parties to that certain Third Amended and Restated Credit
Agreement as of January 27, 2004 (the "Credit Agreement") between Borrower (as hereinafter defined), Bank One, in its capacity as agent for the Lenders ("Agent"), and the Lenders, the address
for notice purposes for Agent, for the Benefit of Lenders, is the following: 

Bank
One, NA, Canada Branch

BCE Place

161 Bay Street, Suite 4240

Toronto, Ontario, Canada M5J 2S1

Attention: Michael N. Tam, Vice President 

With
a copy to 

Bank
One, NA

1717 Main Street

Mail Code TX1-2448

Dallas, Texas 75201

Facsimile No.: 214-290-2332

Attention: Wm. Mark Cranmer

Director, Capital Markets 

        (b)   The
term "Borrower" (whether one or more) shall mean the following: 

Addison
Energy Inc.

c/o EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251

Facsimile No. 214/368-1087

Attention: Douglas H. Miller, Chief Executive Officer and

J. Douglas Ramsey, Chief Financial Officer 

        (c)   The
term "Guarantors" shall mean, collectively, EXCO RESOURCES, INC., a Texas corporation, EXCO OPERATING, LP, a Delaware limited partnership, NORTH COAST
ENERGY, INC., a Delaware corporation, NORTH COAST ENERGY EASTERN, INC., a Delaware corporation, TAURUS ACQUISITION, INC., a Texas corporation, EXCO INVESTMENT I, LLC, a Delaware
limited liability company and EXCO INVESTMENT II, LLC, a Delaware limited liability company,
and the term "Guarantor" means each such entity individually, whose address for notice purposes is the following: 

	

 	
 	

EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251
	 	 	 	Attention:	Douglas H. Miller

Chief Executive Officer
	 	 	 	Attention:	J. Douglas Ramsey

Chief Financial Officer
	 	 	 	 

 

	 	 	 	Facsimile No.:	214-368-2087

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

        3.     Obligations. As an inducement to Lenders to extend or continue to extend credit and other financial accommodations to
Borrower, each Guarantor, for value received, does hereby unconditionally and absolutely guarantee the prompt and full payment and performance of the Guaranteed Indebtedness when due or declared to be
due and at all times thereafter. Notwithstanding the foregoing, however, the liability of each Guarantor hereunder with respect to the Guaranteed Indebtedness shall be limited to the maximum amount of
liability that can be incurred without rendering this Guaranty, as it relates to such Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any
greater amount. 

        4.     Character of Obligations. This is an absolute, continuing and unconditional Guaranty of payment and not of collection and
if at any time or from time to time there is no outstanding Guaranteed Indebtedness, the obligations of each Guarantor with respect to any and all Guaranteed Indebtedness of Borrower to Lenders
incurred thereafter shall not be affected. All Guaranteed Indebtedness heretofore, concurrently herewith or hereafter made by Lenders to Borrower shall be conclusively presumed to have been made or
acquired in acceptance hereof. Each Guarantor shall be primarily liable, jointly and severally, with Borrower and any other guarantor of all or any part of the Guaranteed Indebtedness. 

        5.     Right of Revocation. Each Guarantor understands and agrees that such Guarantor may revoke such Guarantor's future
obligations under this Guaranty at any time by giving Agent written notice that such Guarantor will not be liable hereunder for any indebtedness or obligations of Borrower incurred on or after the
effective date of such revocation. Such revocation shall be deemed to be effective on the day following the day Agent receives such notice delivered either by (a) personal delivery to the
address and designed department of Agent identified in subparagraph 1(a) above, or (b) United States mail, registered or certified, return receipt requested, postage prepaid, addressed to Agent
at the address shown in subparagraph 1(a) above. Notwithstanding such revocation, each Guarantor shall remain liable on such Guarantor's obligations hereunder until payment in full to Lenders of
(x) all of the Guaranteed Indebtedness that is outstanding on the effective date of such revocation, and any renewals and extensions thereof, and (y) all loans, advances and other
extensions of credit made to or for the account of Borrower on or after the effective date of such revocation pursuant to the obligation 

2

 

of
Lenders under a commitment or agreement made to or with Borrower prior to the effective date of such revocation. The terms and conditions of this Guaranty, including without limitation the consents
and waivers set forth in paragraph 7 hereof, shall remain in effect with respect to the Guaranteed Indebtedness described in the preceding sentence in the same manner as if such revocation had
not been made by any Guarantor. 

        6.     Representations and Warranties. Each Guarantor hereby represents and warrants the following to Agent: 

        (a)   This
Guaranty may reasonably be expected to benefit, directly or indirectly, such Guarantor, and such Guarantor's governing body has determined that this Guaranty may
reasonably be expected to benefit, directly or indirectly, such Guarantor; 

        (b)   Such
Guarantor is familiar with, and has independently reviewed the books and records regarding, the financial condition of Borrower and is familiar with the value of
any and all collateral intended to be security for the payment of all or any part of the Guaranteed Indebtedness; provided, however, such Guarantor is not relying on such financial condition or
collateral as an inducement to enter into this Guaranty; 

        (c)   Such
Guarantor has adequate means to obtain from Borrower on a continuing basis information concerning the financial condition of Borrower and such Guarantor is not
relying on Lenders to provide such information to such Guarantor either now or in the future; 

        (d)   Such
Guarantor has the power and authority to execute, deliver and perform this Guaranty and any other agreements executed by such Guarantor contemporaneously herewith,
and the execution, delivery and performance of this Guaranty and any other agreements executed by such Guarantor contemporaneously herewith does not and will not violate (i) any agreement or
instrument to which
such Guarantor is a party, (ii) any law, rule, regulation or order of any governmental authority to which such Guarantor is subject, or (iii) such Guarantor's organizational documents; 

        (e)   Neither
Lenders nor any other party has made any representation, warranty or statement to such Guarantor in order to induce such Guarantor to execute this Guaranty; 

        (f)    The
financial statements and other financial information regarding such Guarantor heretofore and hereafter delivered to Lenders are and shall be true and correct in all
material respects and fairly present the financial position of such Guarantor as of the dates thereof, and no material adverse change has occurred in the financial condition of such Guarantor
reflected in the financial statements and other financial information regarding such Guarantor heretofore delivered to Agent and Lenders since the date of the last statement thereof; and 

        (g)   As
of the date hereof, and after giving effect to this Guaranty and the obligations evidenced hereby, (i) such Guarantor is and will be solvent, (ii) the
fair saleable value of such Guarantor's assets exceeds and will continue to exceed such Guarantor's liabilities (both fixed and contingent), (iii) such Guarantor is and will continue to be able
to pay such Guarantor's debts as they mature, and (iv) if such Guarantor is not an individual, such Guarantor has and will continue to have sufficient capital to carry on its business and all
businesses in which it is about to engage. 

        7.     Covenants. Each Guarantor hereby covenants, that so long as any Lender has any amount outstanding under the Credit
Agreement, any Rate Management Transaction remains in effect or any of the Guaranteed Indebtedness shall remain unpaid, that it will, and, if necessary, will enable the Borrower to, fully comply with
those covenants and agreements set forth in the Credit Agreement. 

3

 

        8.     Consent and Waiver. 

        (a)   Each
Guarantor waives (i) promptness, diligence and notice of acceptance of this Guaranty and notice of the incurring of any obligation, indebtedness or liability
to which this Guaranty applies or may apply and waives presentment for payment, notice of nonpayment, protest, demand, notice of protest, notice of intent to accelerate, notice of acceleration, notice
of dishonor, diligence in enforcement and indulgences of every kind, and (ii) the taking of any other action of Agent, including without limitation giving any notice of default or any other
notice to, or making any demand on, Borrower, any other guarantor of all or any part of the Guaranteed Indebtedness or any other party. 

        (b)   Agent
may at any time, without the consent of or notice to any Guarantor, without incurring responsibility to any Guarantor and without impairing, releasing, reducing or
affecting the obligations of any Guarantor hereunder: (i) change the manner, place or terms of payment of all or any part of the Guaranteed Indebtedness, or renew, extend, modify, rearrange or
alter all or any part of the Guaranteed Indebtedness; (ii) sell, exchange, release, surrender, subordinate, realize upon or otherwise deal with in any manner and in any order any collateral for
all or any part of the Guaranteed Indebtedness or this Guaranty or setoff against all or any part of the Guaranteed Indebtedness; (iii) neglect, delay, omit, fail or refuse to take or prosecute
any action for the collection of all or any part of the Guaranteed Indebtedness or this Guaranty or to take or prosecute any action in connection with any instrument or agreement evidencing, governing
or securing all or any part of the Guaranteed Indebtedness or this Guaranty; (iv) exercise or refrain from exercising any rights against Borrower or others, or otherwise act or refrain from
acting; (v) settle or compromise all or any part of the Guaranteed Indebtedness and subordinate the payment of all or any part of the Guaranteed Indebtedness to the payment of any obligations,
indebtedness or liabilities which may be due or become due to Lenders or others; (vi) apply any deposit balance, fund, payment, collections through process of law or otherwise or other
collateral of Borrower to the satisfaction and liquidation of the indebtedness or obligations of Borrower to Lenders not guaranteed under this Guaranty pursuant to paragraph 3 herein; and
(vii) apply any sums paid to Lenders by any Guarantor, Borrower or others to the Guaranteed Indebtedness in such order and manner as Agent, in its sole discretion, may determine. 

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

        (d)   Should
Agent seek to enforce the obligations of any Guarantor hereunder by action in any court or otherwise, each Guarantor waives any requirement, substantive or
procedural, that (i) Agent first enforce any rights or remedies against Borrower or any other person or entity liable to Lenders for all or any part of the Guaranteed Indebtedness, including
without limitation that a judgment first be rendered against Borrower or any other person or entity, or that Borrower or any other person or entity should be joined in such cause, or (ii) Agent
shall first enforce rights against any collateral which shall ever have been given to secure all or any part of the Guaranteed Indebtedness or this Guaranty. Such waiver shall be without prejudice to
Agent's right, at its option, to proceed against Borrower or any other person or entity, whether by separate action or by joinder. 

        (e)   In
addition to any other waivers, agreements and covenants of each Guarantor set forth herein, each Guarantor hereby further waives and releases all claims, causes of
action, defenses 

4

 

and
offsets for any act or omission of Agent, its directors, officers, employees, representatives or agents in connection with Agent's administration of the Guaranteed Indebtedness, except for Agent's
willful misconduct and gross negligence. 

        9.     Obligations Not Impaired. 

        (a)   Each
Guarantor agrees that such Guarantor's obligations hereunder shall not be released, diminished, impaired, reduced or affected by the occurrence of any one or more
of the following events: (i) the death, disability or lack of corporate power of Borrower, any Guarantor (except as provided in paragraph 11 herein) or any other guarantor of all or any
part of the Guaranteed Indebtedness, (ii) any receivership, insolvency, bankruptcy or other proceedings affecting Borrower, any Guarantor or any other guarantor of all or any part of the
Guaranteed Indebtedness, or any of their respective property; (iii) the partial or total release or discharge of Borrower or any other guarantor of all or any part of the Guaranteed
Indebtedness, or any other person or entity from the performance of any obligation contained in any instrument or agreement evidencing, governing or securing all or any part of the Guaranteed
Indebtedness, whether occurring by reason of law or otherwise; (iv) the taking or accepting of any collateral for all or any part of the Guaranteed Indebtedness or this Guaranty; (v) the
taking or accepting of any other guaranty for all or any part of the Guaranteed Indebtedness; (vi) any failure by Agent to acquire, perfect or continue any lien or security interest on
collateral securing all or any part of the Guaranteed Indebtedness or this Guaranty; (vii) the impairment of any collateral securing all or any part of the Guaranteed Indebtedness or this
Guaranty; (viii) any failure by Agent to sell any collateral securing all or any part of the Guaranteed Indebtedness or this Guaranty in a commercially reasonable manner or as otherwise
required by law; (ix) any invalidity or unenforceability of or defect or deficiency in any instrument or agreement evidencing, governing or securing all or any part of the Guaranteed
Indebtedness or this Guaranty; or (x) any other circumstances which might otherwise constitute a defense available to, or discharge of, Borrower or any other guarantor of all or any part of the
Guaranteed Indebtedness. 

        (b)   This
Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of all or any part of the Guaranteed Indebtedness is
rescinded or must otherwise be returned by Agent upon the insolvency, bankruptcy or reorganization of Borrower, any Guarantor, any other guarantor of all or any part of the Guaranteed Indebtedness, or
otherwise, all as though such payment had not been made. 

        (c)   In
the event Borrower is a corporation, joint stock association or partnership, or is hereafter incorporated, none of the following shall affect any Guarantor's
liability hereunder: (i) the unenforceability of all or any part of the Guaranteed Indebtedness against Borrower by reason of the fact that the Guaranteed Indebtedness exceeds the amount
permitted by law; (ii) the act of creating all or any part of the Guaranteed Indebtedness is ultra vires; or (iii) the officers or partners creating all or any part of the Guaranteed
Indebtedness acted in excess of their authority. Each Guarantor hereby acknowledges that withdrawal from, or termination of, any ownership interest in Borrower now or hereafter owned or held by such
Guarantor shall not alter, affect or in any way limit the obligations of such Guarantor hereunder. 

        10.   Actions against Guarantors. In the event of a default in the payment or performance of all or any part of the Guaranteed
Indebtedness when such Guaranteed Indebtedness becomes due, whether by its terms, by acceleration or otherwise, Guarantors shall, without notice or demand, promptly pay the amount due thereon to
Lenders, in lawful money of the United States, at Agent's address set forth hereinabove. One or more successive or concurrent actions may be brought against Guarantors, either in the same action in
which Borrower is sued or in separate actions, as often as Agent deems advisable. The exercise by Agent of any right or remedy under this Guaranty or under any other agreement or instrument, at law,
in equity or otherwise, shall not preclude concurrent or subsequent exercise of any 

5

 

other
right or remedy. The books and records of Lenders shall be admissible in evidence in any action or proceeding involving this Guaranty and shall be prima
facie evidence of the payments made on, and the outstanding balance of, the Guaranteed Indebtedness. 

        11.   Payment by Guarantors. Whenever any Guarantor pays any sum which is or may become due under this Guaranty, written notice
must be delivered to Agent contemporaneously with such payment. Such notice shall be effective for purposes of this paragraph when contemporaneously with such payment Agent receives such notice either
by: (a) personal delivery to the address and designated department of Agent identified in subparagraph 1(a) above, or (b) United States mail, certified or registered, return receipt
requested, postage prepaid, addressed to Agent at the address shown in subparagraph 1(a) above. In the absence of such notice to Agent by any Guarantor in compliance with the provisions hereof, any
sum received by Agent on account of the Guaranteed Indebtedness shall be conclusively deemed paid by Borrower. 

        12.   Judgment Currency. If for the purposes of obtaining judgment in any court it is necessary to convert a sum due from the
Guarantors hereunder in the currency expressed to be payable herein (the "Specified Currency") into another currency, the parties hereto agree, to the fullest extent that they may effectively do so,
that the rate of exchange used shall be that at which in accordance with normal banking procedures the Agent could purchase the Specified Currency with such other currency at the Agent's main Toronto,
Ontario, Canada office on the Business Day preceding that on which final, non-appealable judgment is given. The obligations of each Guarantor in respect of any sum due to any Lender or the
Agent hereunder shall, notwithstanding any judgment in a currency other than the Specified Currency, be discharged only to the extent that on the Business Day following receipt by such Lender or the
Agent (as the case may be) of any sum adjudged to be so due in such other currency such Lender or the Agent (as the case may be) may in accordance with normal, reasonable banking procedures purchase
the Specified Currency with such other currency. If the amount of the Specified Currency so purchased is less than the sum originally due to such Lender or the Agent, as the case may be, in the
Specified Currency, each Guarantor agrees, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify such Lender or the Agent,
as the case may be, against such loss, and if the amount of the Specified Currency so purchased exceeds the sum originally due to any Lender or the Agent, as the case may be, in the Specified
Currency, such Lender or the Agent, as the case may be, agrees to remit such excess to such Guarantor. The Specified Currency in which obligation hereunder is payable is the Canadian Dollar. 

        13.   Notice of Sale. In the event that any Guarantor is entitled to receive any notice under the Uniform Commercial Code, as
it exists in the state governing any such notice, of the sale or other disposition of any collateral securing all or any part of the Guaranteed Indebtedness or this Guaranty, reasonable notice shall
be deemed given when such notice is deposited in the United States mail, postage prepaid, at the address for such Guarantor set forth in subparagraph 1(c) above, five (5) days prior to the date
any public sale, or after which any private sale, of any such collateral is to be held; provided,  however, that notice given in any other reasonable manner
or at any other reasonable time shall be sufficient. 

        14.   Waiver of Lenders. No delay on the part of Agent in exercising any right hereunder or failure to exercise the same shall
operate as a waiver of such right. In no event shall any waiver of the provisions of this Guaranty be effective unless the same be in writing and signed by an officer of Agent, and then only in the
specific instance and for the purpose given. 

        15.   Successors and Assigns. This Guaranty is for the benefit of Agent, its successors and assigns. This Guaranty is binding
upon each Guarantor's heirs, executors, administrators, personal representatives and successors, including without limitation any person or entity obligated by operation of law upon the
reorganization, merger, consolidation or other change in the organizational structure of any Guarantor. 

6

 

        16.   Costs and Expenses. Each Guarantor shall pay on demand by Agent all costs and expenses (including without limitation all
reasonable attorneys' fees) incurred by Agent in connection with the preparation, administration, enforcement and/or collection of this Guaranty. This covenant shall survive the payment of the
Guaranteed Indebtedness. 

        17.   Severability. If any provision of this Guaranty is held by a court of competent jurisdiction to be illegal, invalid or
enforceable under present or future laws, such provision shall be fully severable, shall not impair or invalidate the remainder of this Guaranty and the effect thereof shall be confined to the
provision held to be illegal, invalid or unenforceable. 

        18.   No Obligation. Nothing contained herein shall be construed as an obligation on the part of Lenders to extend or continue
to extend credit to Borrower. 

        19.   Amendment. No modification or amendment of any provision of this Guaranty, nor consent to any departure by any Guarantor
therefrom, shall be effective unless the same shall be in writing and signed by an officer of Agent, and then shall be effective only in the specific instance and for the purpose for which given. 

        20.   Cumulative Rights. All rights and remedies of Agent hereunder are cumulative of each other and of every other right or
remedy which Agent may otherwise have at law or in equity or under any instrument or agreement, and the exercise of one or more of such rights or remedies shall not prejudice or impair the concurrent
or subsequent exercise of any other rights or remedies. 

        21.   Governing Law. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF TEXAS AND APPLICABLE FEDERAL LAWS.

        22.   Venue. This Guaranty has been entered into in the county in Texas where Agent's address for notice purposes is located,
and it shall be performable for all purposes in such county. Courts within Dallas County, Texas shall have jurisdiction over any and all disputes arising under or pertaining to this Guaranty and venue
for any such disputes shall be in the county or judicial district where the Agent's address for notice purposes is located. 

        23.   Compliance with Applicable Usury Laws. Notwithstanding any other provision of this Guaranty or of any instrument or
agreement evidencing, governing or securing all or any part of the Guaranteed Indebtedness, each Guarantor and Agent, by its acceptance hereof, agree that the Guarantors shall never be required or
obligated to pay interest in excess of the maximum nonusurious interest rate as may be authorized by applicable law for the written contracts which constitute the Guaranteed Indebtedness. It is the
intention of each Guarantor and Agent to conform strictly to the applicable laws which limit interest rates, and any of the aforesaid contracts for interest, if and to the extent payable by such
Guarantor, shall be held to be subject to reduction to the maximum nonusurious interest rate allowed under said law. 

        24.   Descriptive Headings. The captions in this Guaranty are for convenience only and shall not define or limit the provisions
hereof. 

        25.   Gender. Within this Guaranty, words of any gender shall be held and construed to include the other gender. 

        26.   Entire Agreement. This Guaranty contains the entire agreement between the Guarantors and Agent regarding the subject
matter hereof and supersedes all prior written and oral agreements and understandings, if any, regarding same; provided, however, this Guaranty is in addition to and does not replace, cancel, modify
or affect any other guaranty of any Guarantor now or hereafter held by Agent that relates to Borrower or any other person or entity. 

7

 

        EXECUTED as of the date first above written. 

	

 	
 	
GUARANTOR:
	

 	
 	
EXCO RESOURCES, INC.

a Texas corporation
	

 	
 	

By:	
 	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name: J. Douglas Ramsey

Title: Vice President and Chief Financial Officer
	

 	
 	
EXCO OPERATING, LP

a Delaware limited partnership
	

 	
 	

By:	
 	

EXCO Investment II, LLC,

its sole general partner
	

 	
 	

 	
 	

By:	

EXCO Resources, Inc.,

its sole member
	

 	
 	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	 	 	Name:	J. Douglas Ramsey
	 	 	 	 	 	Title:	Vice President and

Chief Financial Officer

	

 	
 	
NORTH COAST ENERGY, INC.

a Delaware corporation
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name: J. Douglas Ramsey

Title: Vice President
	

 	
 	
NORTH COAST ENERGY EASTERN, INC.

a Delaware corporation
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name: J. Douglas Ramsey

Title: Vice President

8

 

	 	 	TAURUS ACQUISITION, INC.

a Texas corporation
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name: J. Douglas Ramsey

Title: Vice President
	

 	
 	
EXCO INVESTMENT I, LLC

a Delaware limited liability company
	

 	
 	

By:	

EXCO Resources, Inc.

Its sole member
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name:  J. Douglas Ramsey

Title:  Vice President and Chief Financial Officer
	

 	
 	
EXCO INVESTMENT II, LLC

a Delaware limited liability company]ql
	

 	
 	

By:	

EXCO Resources, Inc.

Its sole member
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name:  J. Douglas Ramsey

Title:  Vice President and Chief Financial Officer
	

 	
 	
BANK ONE, NA, CANADA BRANCH
	

 	
 	

By:	

/s/  WM. MARK CRANMER      

	 	 	 	Name:  Wm. Mark Cranmer

Title:  Director, Capital Markets

9

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Exhibit 10.15

EXECUTION COPY

SECOND RESTATED UNLIMITED GUARANTYQuickLinks
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Exhibit 10.16    
    

 
  EXECUTION COPY    
    

 
  AMENDED AND RESTATED
  PLEDGE AGREEMENT FOR PARTNERSHIP INTERESTS    
    

        This AMENDED AND RESTATED PLEDGE AGREEMENT FOR PARTNERSHIP INTERESTS ("Pledge Agreement"), entered into as of the
27th day of January, 2004, by and between EXCO INVESTMENT I, LLC, a Delaware limited liability company ("Investment I"),  EXCO INVESTMENT II, LLC,
a Delaware limited liability company ("Investment II"; together with Investment I, the "Pledgors") and  BANK ONE, NA, a national banking association having its principal office in Chicago, Illinois,
in its capacity as agent (the "Agent" or "Secured Party")
for the Lenders under the Credit Agreement referred to below. 

 
 

W I T N E S S E T H:    

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

        (a)   Guaranty. That certain Amended and Restated Subsidiary Guaranty dated as of January 27, 2004, executed by
Pledgors, guaranteeing unconditionally the payment of all obligations owed to the Lenders by Borrowers under the Credit Agreement, and any renewals, substitutions, replacements or restatements
thereof. 

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

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

        (d)   Rate Management Transactions. Payment of any and all obligations, contingent or otherwise, whether now existing or
hereafter arising, of any Borrower or any Subsidiary Guarantor to the Lenders or to any of their Affiliates or successors arising under or in connection with Rate Management Transactions (as
hereinafter defined). For the purposes hereof, the term "Rate Management Transactions" means any transactions (including an agreement with respect thereto) now existing or hereafter entered into among
any Borrower or any Subsidiary Guarantor with any Lender or any Affiliate or successor to any Lender, which is a rate swap, basic swap, forward rate 

2

 

transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, forward exchange transaction, cap transaction, collar
transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these
transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures. 

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

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

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

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

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

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

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

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

3

 

        (d)   Secured
Party shall give each Pledgor ten (10) days' written notice of Secured Party's intention to make any such public or private sale. Such notice, in case of
public sale, shall state the time and place for such sale, and, in the case of private sale, the day on which the Collateral, or any portion thereof, will first be offered for sale. Any such public
sale shall be held at such time or times within the ordinary business hours and at such place or places as Secured Party may fix and shall state in the notice of such sale. At any sale, the
Collateral, or any portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as Secured Party may (in its sole and absolute discretion) determine. Secured Party shall
not be obligated to make any sale of Collateral if it shall determine not
to do so, regardless of the fact that notice of sale of Collateral may have been given. Secured Party may, without notice or publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. In the
event a sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by Secured Party until the sale price is paid by the purchaser or
purchasers thereof, but Secured Party shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure,
such Collateral may be sold again upon like notice. As an alternative to exercising the power of sale herein conferred upon it, Secured Party may proceed by a suit or suits at law or in equity to
foreclose under this Pledge Agreement and to sell the Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction. 

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

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

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

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

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

4

 

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

        First: to the payment of all costs and expenses incurred by Secured Party in connection with such sale, including, but not limited to, all
court costs and the reasonable fees and expenses of counsel for Secured Party in connection therewith, and to the repayment of all advances made by Secured Party hereunder for the account of any
Pledgor and the payment of all costs and expenses paid or incurred by Secured Party upon the exercise of any right or remedy hereunder or thereunder, to the extent that such advances, costs and
expenses shall not have been paid to Secured Party upon its demand therefor; 

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

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

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

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

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

        Section 10.
Voting Rights, Dividends, Etc.

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

        (b)   Any
and all stock or liquidating dividends, other distributions in property, return of capital or other distributions made on or in respect of any of the Collateral,
whether resulting 

5

 

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

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

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

        (a)   Each
Pledgor hereby transfers all interests in any general partnership, limited partnership, limited liability partnership or other partnership including, without
limitation, all partnership interests of Operating and the certificates, if any, representing such partnership interests and any interest of each Pledgor on the books and records of such partnership
or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or
proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such partnership interests to Secured Party. Each Pledgor covenants that with
respect to any additional partnership interests issued to or received by such Pledgor (i) that is represented by a certificate or that is an "instrument", it shall cause such certificate or
instrument to be delivered to the Agent, indorsed in blank by an "effective indorsement" (as defined in Section 8-107 of the Code), regardless of whether such certificate
constitutes a "certificated security" for purposes of the Code and (ii) that is an "uncertificated security" for purposes of the Code, it shall cause the issuer of such uncertificated security
to either (x) register the Agent as the registered owner thereof on the books and records of the issuer or (y) execute an agreement substantially in the form of Exhibit A hereto,
pursuant to which such issuer agrees to comply with the Agent's instructions with respect to such uncertificated security without further consent by such Issuer. 

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

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

        Section 13.
Binding Agreement, Assignment. This Pledge Agreement, and the terms, covenants and conditions hereof, shall be binding
upon and inure to the benefit of the parties hereto and to all holders of indebtedness secured hereby and their respective successors and assigns, except that neither Pledgor shall be permitted to
assign this Pledge Agreement or any interest herein or in the Collateral, or any part thereof, or otherwise pledge, encumber or grant any option with respect to the Collateral, or any part thereof, or
any cash or property held by Secured Party as Collateral under this Pledge Agreement. 

6

 

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

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

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

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

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

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

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

7

 

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

	 	 	EXCO INVESTMENT I, LLC

a Delaware limited liability company
	

 	
 	

By:	

EXCO Resources, Inc.

Its sole member
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name: J. Douglas Ramsey

Title: Vice President and Chief Financial Officer

	

 	
 	

EXCO Investment I, LLC

c/o EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251
	 	 	 	Attention:	Douglas H. Miller

Chief Executive Officer
	 	 	 	Attention:	J. Douglas Ramsey

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

	

 	
 	
EXCO INVESTMENT II, LLC

a Delaware limited liability company
	

 	
 	

By:	

EXCO Resources, Inc.

Its sole member
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	 	Name: J. Douglas Ramsey

Title: Vice President and Chief Financial Officer

	

 	
 	

EXCO Investment II, LLC

c/o EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251
	 	 	 	Attention:	Douglas H. Miller

Chief Executive Officer
	 	 	 	Attention:	J. Douglas Ramsey

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

8

 

	 	 	AGENT:
	

 	
 	
BANK ONE, NA

a national banking association

(Main Office Chicago)

as a Lender and as Administrative Agent
	

 	
 	

By:	

/s/  WM. MARK CRANMER      

	 	 	 	Name: Wm. Mark Cranmer

Title: Director, Capital Markets
	

 	
 	

Bank One, NA

Mail Code IL1-0634

1 Bank One Plaza

Chicago, Illinois 60670-0634

Facsimile No.: 312-732-4840

Attention: Jim Moore

	

 	
 	

With a copy to:
	

 	
 	

Bank One, NA

1717 Main Street

Mail Code TX1-2448

Dallas, Texas 75201
	 	 	 	Facsimile No.:	214-290-2332
	 	 	 	Attention:	Wm. Mark Cranmer

Director, Capital Markets

9

  

 
 

EXHIBIT A
  
    UNCERTIFICATED SECURITIES CONTROL AGREEMENT    
    

        This Uncertificated Securities Control Agreement ("Agreement") dated as of
[    ], 20[    ] among EXCO Investment I, LLC, a Delaware limited liability company ("Investment
I"), and EXCO Investment II, LLC, a Delaware limited liability company ("Investment II"), as pledgors (collectively,
Investment I and Investment II are hereinafter referred to as "Pledgors"), Bank One, NA, as a Lender and as Administrative Agent for the Lenders (in its
capacity as Administrative Agent, "Agent") and EXCO Operating, LP, a Delaware limited partnership, as issuer
("Issuer"). Capitalized terms used but not defined herein shall have the meaning assigned to such terms in the Third Amended and Restated Credit
Agreement dated as of January 27, 2004, among EXCO Resources, Inc., a Texas corporation, Issuer, North Coast Energy, Inc., a Delaware corporation, North Coast Energy
Eastern, Inc., a Delaware corporation, Agent, each of the financial institutions which is a party thereto (as evidenced by the signature pages to the Credit Agreement), BNP Paribas, as
Syndication Agent, The Bank of Nova Scotia, as Co-Documentation Agent and Toronto Dominion (Texas), as Co-Documentation Agent (as amended, supplemented or otherwise modified
from time to time, the "Credit Agreement"). 

        Section 1.  Registered Ownership of Equity Interests. Issuer hereby confirms and agrees that as of the date hereof Investment I is
the registered owner of [      ] of Issuer and Investment II is the registered owner of [      ] of Issuer (collectively, the
"Pledged Equity Interests") and Issuer shall not change the registered owner of the Pledged Equity Interests without the prior written consent of the
Agent. 

        Section 2.
Instructions. If at any time Issuer shall receive instructions originated by the Agent relating to the Pledged Equity
Interests of Issuer, Issuer shall comply with such instructions without further consent by any Pledgor or any other Person. 

        Section 3.
Additional Representations and Warranties of the Issuer. Issuer hereby represents and warrants to the Agent: 

        (a)   It
has not entered into, and until the termination of this agreement will not enter into, any agreement with any other Person relating the Pledged Equity Interests
pursuant to which it has agreed to comply with instructions issued by such other Person; and 

        (b)   It
has not entered into, and until the termination of this agreement will not enter into, any agreement with any Pledgor or the Agent purporting to limit or condition
the obligation of Issuer to comply with instructions as set forth in Section 2 hereof. 

        (c)   Except
for the claims and interest of the Agent and of the Pledgors in the Pledged Equity Interests, the Issuer does not know of any claim to, or interest in, the
Pledged Equity Interests. If any Person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the
Pledged Equity Interests of Issuer, Issuer will promptly notify the Agent and the Pledgors thereof. 

        (d)   This
Agreement is the valid and legally binding obligation of Issuer. 

        Section 4.
Choice of Law. This Agreement shall be governed by the laws of the State of Texas. 

        Section 5.
Conflict with Other Agreements. In the event of any conflict between this Agreement (or any portion thereof) and any
other agreement now existing or hereafter entered into, the terms of this Agreement shall prevail. No amendment or modification of this Agreement or waiver of any right hereunder shall be binding on
any party hereto unless it is in writing and is signed by all of the parties hereto. 

        Section 6.
Voting Rights. Until such time as the Agent shall otherwise instruct the Issuer in writing, the Pledgors shall have the
right to vote their respective Pledged Equity Interests. 

10

 

        Section 7.  Successors; Assignment. The terms of this Agreement shall be binding upon, and shall inure to the benefit of, the
parties hereto and their respective corporate successors or heirs and personal representatives who obtain such rights solely by operation of law. The Agent may assign its rights hereunder by sending
written notice of such assignment to the Pledgors and the Issuer. 

        Section 8.
Notices. Any notice, request or other communication required or permitted to be given under this Agreement shall be in
writing and deemed to have been properly given when delivered in person, or when sent by telecopy or other electronic means and electronic confirmation of error free receipt is received or two
(2) days after being sent by certified or registered United States mail, return receipt requested, postage prepaid, addressed to the party at the address set forth below. 

	 	Pledgors:	 	EXCO Investment I, LLC

EXCO Investment II, LLC

c/o EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251
	 	 	 	 	Attention:	 	Douglas H. Miller

Chief Executive Officer
	 	 	 	 	Attention:	 	J. Douglas Ramsey

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

 	

Agent:	
 	

Bank One, NA,

Mail Code IL1-0634

1 Bank One Plaza

Chicago, Illinois, 60670-0634

Facsimile No.: (312) 732-4840

Attention: Jim Moore
	

 	

with copy to:	
 	

Bank One, NA

1717 Main Street, TX1-2448

Dallas, Texas 75201

Facsimile No. (214) 290-2332

Attention: Wm. Mark Cranmer, Director, Capital Markets
	

 	

Issuer:	
 	

EXCO Operating, LP

c/o EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251
	 	 	 	 	Attention:	 	Douglas H. Miller

Chief Executive Officer
	 	 	 	 	Attention:	 	J. Douglas Ramsey

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

        Any
party may change its address for notices in the manner set forth above. 

        Section 9.
Termination. The obligations of Issuer to the Agent pursuant to this Agreement shall continue in effect until the
security interests of the Agent in the Pledged Equity Interests of Issuer have been terminated pursuant to the terms of the Credit Agreement and the Agent has notified Issuer of such termination in
writing. The Agent agrees to provide Notice of Termination in substantially the form of Exhibit A hereto to Issuer upon the request of the Pledgors on or after the termination of the Agent's
security interest in the Pledged Equity Interests of Issuer pursuant to the terms of the Credit Agreement. The termination of this Agreement shall not terminate the Pledged Equity Interests or 

11

 

alter
the obligations of Issuer to the Pledgors pursuant to any other agreement with respect to the Pledged Equity Interests. 

        Section 10.
Counterparts. This Agreement may be executed in any number of counterparts, all of which shall constitute one and the
same instrument, and any party hereto may execute this Agreement by signing and delivering one or more counterparts. 

12

 

	 	 	PLEDGORS:
	

 	
 	
EXCO INVESTMENT I, LLC,

a Delaware limited liability company
	

 	
 	

By: EXCO Resources, Inc.,

      its sole member

	

 	
 	

 	

 	
 	

By:	

	 	 	 	 	 	 	Name:	J. Douglas Ramsey
	 	 	 	 	 	 	Title:	Vice President and

Chief Financial Officer

	

 	
 	
EXCO INVESTMENT II, LLC,

a Delaware limited liability company
	

 	
 	

By:	

EXCO Resources, Inc.,

its sole member

	

 	
 	

 	

 	
 	

By:	

	 	 	 	 	 	 	Name:	J. Douglas Ramsey
	 	 	 	 	 	 	Title:	Vice President and

Chief Financial Officer

	

 	
 	

AGENT:
	

 	
 	
BANK ONE, NA,

a national banking association

(Main Office Chicago)

as a Lender and as Administrative Agent
	

 	
 	

By:	

	 	 	 	Name: Wm. Mark Cranmer

Title: Director, Capital Markets
	

 	
 	
ISSUER:
	

 	
 	
EXCO OPERATING, LP

a Delaware limited partnership
	

 	
 	

By:	

EXCO Investment II, LLC,

its general partner
	

 	
 	

By:	

EXCO Resources, Inc.,

its sole member
	

 	
 	

By:	

	 	 	 	 	Name: J. Douglas Ramsey
	 	 	 	 	Title: Vice President and

Chief Financial Officer

13

 
Exhibit A

[Letterhead
of Agent] 

[Date]

[Name
and Address of Issuer] 

Attention:            

Re:
Termination of Control Agreement

        You
are hereby notified that the Uncertificated Securities Control Agreement between you, [the Pledgors] and the
undersigned (a copy of which is attached) is terminated and you have no further obligations to the undersigned pursuant to such Agreement. Notwithstanding any previous instructions to you, you are
hereby instructed to accept all future directions with respect to Pledged Equity Interests (as defined in the Uncertificated Securities Control Agreement) from [the
Pledgors]. This notice terminates any obligations you may have to the undersigned with respect to the Pledged Equity Interests, however nothing contained in this
notice shall alter any obligations which you may otherwise owe to [the Pledgors] pursuant to any other agreement. 

        You
are instructed to deliver a copy of this notice by facsimile transmission to [insert name of Pledgor]. 

	 	 	Very truly yours,
	

 	
 	

BANK ONE, NA

a national banking association

(Main Office Chicago)

as a Lender and as Administrative Agent
	

 	
 	

By:	

 
	 	 	 	 	

	 	 	 	Name: Wm. Mark Cranmer

Title: Director, Capital Markets

14

QuickLinks

Exhibit 10.16

EXECUTION COPY

AMENDED AND RESTATED PLEDGE AGREEMENT FOR PARTNERSHIP INTERESTS

W I T N E S S E T H

EXHIBIT A UNCERTIFICATED SECURITIES CONTROL AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]