Document:

Exhibit 10.3

THIRD
AMENDMENT TO

PURCHASE AND SALE AGREEMENT

THIS THIRD AMENDMENT TO PURCHASE AND
SALE AGREEMENT (this “Amendment”), effective as of February
1, 2007, is entered into by and among Anadarko Petroleum Corporation, a
Delaware corporation (“APC”), Anadarko E&P Company LP, a Delaware limited
partnership (“AEP”), Howell Petroleum Corporation, a Delaware corporation (“Howell”),
Kerr-McGee Oil & Gas Onshore LP, a Delaware limited partnership (“KMOG”),
Anadarko Gathering Company, a Delaware corporation (“AGC”; APC, AEP, Howell,
KMOG and AGC are collectively called “Seller”) and EXCO Resources, Inc., a
Texas corporation (“Purchaser”).  Each
capitalized term used herein and not otherwise defined herein shall have the
meaning ascribed to it in the Purchase Agreement referred to below.

RECITALS

WHEREAS, Seller and Purchaser entered into that
certain Purchase and Sale Agreement (as amended, the “Purchase Agreement”),
dated February 1, 2007, whereby Seller agreed to sell, and Purchaser, among
other things, agreed to purchase, accept and pay for the Assets and to assume
the Assumed Seller Obligations,; and

WHEREAS, Seller and Purchaser desire (i) to amend
further the Purchase Agreement, among other things, (A) to amend the Sections
of the Purchase Agreement specified herein and (B) to amend and restate Exhibits A, A-1, B and D and Schedules
1.2(e), 1.3(e), 5.7(a) and 5.13 and (ii)
to provide for certain interim services by certain employees of Anadarko during
the month of May.

NOW, THEREFORE, in consideration of the foregoing and
the mutual promises, covenants, conditions and agreements herein and in the
Purchase Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending
to be legally bound by the terms hereof, agree as follows:

ARTICLE
I

AMENDMENTS

Section 1.1             Amendment to the Definitions
Section of the Purchase Agreement. 
The Definitions section of the Purchase Agreement is hereby amended by
adding the following defined terms thereto:

“Gulf Coast Assets” has the meaning set forth in
Section 12.10.

“Assumed Gulf Coast Seller Obligations” has the
meaning set forth in Section 12.10.

“Southern G” means Southern G Holdings, LLC, a
Delaware limited liability company and wholly-owned subsidiary of Purchaser.

“Norge Marchand Gas Gathering System” means the gas
gathering system located in Grady, Oklahoma, more particularly described in and
subject to that certain Agreement for the

 1
 

Construction, Ownership
and operation of the Norge Marchand Gas Gathering System dated June 1, 2003, by
and among Anadarko Gathering Company and other working interest owners
reflected therein.

Section 1.2             Amendment to Definitions of
Defensible Title and Permitted Encumbrances.  From and after the Closing Date, all
references to “Exhibit A-1” contained in (i) the
definitions of (a) “Defensible Title” contained in Section
3.2(a) and Section 3.2(b)
of the Purchase Agreement and (b) “Permitted Encumbrances” contained in Section 3.3 of the Purchase Agreement and (ii) Section 3.1 of the Purchase Agreement shall be deleted in
their entirety and the clause ““Exhibit A-1” to
the Conveyance” shall be substituted in place thereof.

Section 1.3             Amendment
to Section 6.9 of the Purchase Agreement. 
Section 6.9 of the Purchase Agreement is hereby amended and restated in
its entirety to read as follows:

Section 6.9  SEC Disclosure.

Except for the
contemplated sale of Southern G to a Person other than an Affiliate of
Purchaser after the Closing Date as previously disclosed to Seller, Purchaser
is acquiring the Assets for its own account for use in its trade or business,
and not with a view toward or for sale associated with any distribution
thereof, nor with any present intention of making a distribution thereof within
the meaning of the Securities Act of 1933, as amended, and applicable state
securities laws.  Any such sale of
Southern G shall be made in compliance with the Securities Act of 1933, as
amended, and any applicable state securities laws.

Section 1.4             Amendment
to Section 7.7(b) of the Purchase Agreement.  Section 7.7(b) is hereby amended and restated
in its entirety to read as follows:

(b)           If the holder of a Preference
Right elects prior to Closing to purchase the Asset subject to a Preference
Right (a “Preference Property”) in accordance with the terms of such Preference
Right, and Seller receives written notice of such election prior to the
Closing, such Preference Property will be eliminated from the Assets and the
Purchase Price shall be reduced by the Allocated Value of the Preference
Property.  Except as provided in Section 7.7(c),
if the holder of a Preference Right relating to the Gulf Coast Assets, the
Norge Marchand Gas Gathering System, or other Assets located in Oklahoma who
has been offered a Preference Property or who has been requested to waive its
Preference Right pursuant to Section 7.7(a)
does not elect to purchase such Preference Property or waive such Preference
Right with respect to the transactions contemplated by this Agreement prior to
the Closing Date and the time in which the Preference Right relating to the
Gulf Coast Assets may be exercised has not expired, such Preference Property
shall be conveyed to Purchaser at Closing subject to the rights, if any, of the
holder of such Preference Right.  In such
event, Seller shall continue to use its commercially reasonable efforts to
obtain the waiver of such Preference Rights relating to the Gulf Coast Assets,
the Norge Marchand Gas

 2
 

Gathering
System, or other Assets located in Oklahoma, as applicable, to the extent
provided in Section 7.7(a) and
Purchaser shall cooperate with such efforts. 
If the holder of a Preference Right relating to a Gulf Coast Asset, the
Norge Marchand Gas Gathering System, or other Assets located in Oklahoma elects
to purchase a Preference Property subject to its Preference Right and Closing
has already occurred with respect to such Preference Property, Purchaser shall
be obligated to comply with such Preference Right to the extent, if any, that
the same remains valid and enforceable with respect to this transaction and
Purchaser shall be entitled to the consideration for the sale of such
Preference Property from Purchaser to such Preference Right holder.

Section 1.5             Amendment to Section 7.7(c)(iii)
of the Purchase Agreement.  Section
7.7(c)(iii) is hereby amended and restated in its entirety to read as follows:

(iii)                               the holder of a
Preference Right other than with respect to the Gulf Coast Assets, the Norge
Marchand Gas Gathering System, or other Assets located in Oklahoma does not
elect to purchase such Preference Property or waive such Preference Right with
respect to the transactions contemplated by this Agreement prior to the Closing
Date and the time in which such Preference Right may be exercised has not
expired,

Section 1.6             Amendment to Section 11.3(v) of
the Purchase Agreement.  Section
11.3(v) of the Purchase Agreement is hereby amended and restated in its
entirety to read as follows:

(v)                                 (A)
attributable to or arising out of Proceedings set forth under Category 1 on Schedule 5.7(a), (B) Losses owed as a
result of the resolution of the Proceeding listed in item 6 under Category 3 on
Schedule 5.7(a) to the extent such
Losses result from or are attributable to production from the Properties
occurring before the Closing Date, (C) royalties owed on account of production
from the Properties before the Closing Date as a result of or attributable to
the resolution of the Royalty Actions and all other Losses owed as a result of
the resolution of the Royalty Actions to the extent such Losses result from or
are attributable to production from such Properties before the Closing Date,
(D) Proceedings arising out of or attributable to Seller’s ownership or
operation of the Assets arising after the date hereof but before Closing, or
(E) Proceedings that arise after Closing for personal injury or death arising
and occurring before Closing which is attributable to Seller’s (or its
Affiliates’) ownership or operation of the Assets;

Section 1.7             Amendment to Section 12.10 of
the Purchase Agreement.  Section
12.10 of the Purchase Agreement is hereby amended and restated in its entirety
to read as follows:

No party shall assign all
or any part of this Agreement, nor shall any party assign or delegate any of
its rights or duties

 3
 

hereunder, without the
prior written consent of the other party. 
Purchaser shall have the right, without the consent of Seller, to
designate Southern G to take title to the Assets to be described and covered by
the Conveyance attached hereto as Exhibit B-2
(the “Gulf Coast Assets”) and to assume the Assumed Seller Obligations that are
obligations or liabilities with respect to the Gulf Coast Assets (the “Assumed
Gulf Coast Seller Obligations”), provided, however, that no such designation or
assumption shall relieve Purchaser from its obligations hereunder including,
without limitation, with respect to the Gulf Coast Assets and the Assumed Gulf
Coast Seller Obligations. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

Section 1.8             Replacement of Exhibit B to the Purchase Agreement.  Exhibit B to
the Purchase Agreement is hereby replaced in its entirety with Exhibits B-1 and B-2 attached
hereto, all references to “Exhibit B” in
the Purchase Agreement are hereby replaced with “Exhibits B-1
and B-2” and the term “Conveyance” as used in the Purchase Agreement
shall hereinafter refer collectively to the conveyances in substantially the
forms of Exhibits B-1 and B-2 and
any subsequent conveyances of the Assets subsequent to the Closing pursuant to
Section 7.7.

Section 1.9             Replacement of Exhibit D to the Purchase Agreement.  Exhibit D to
the Purchase Agreement is hereby replaced in its entirety with Exhibits D-1 and D-2 attached
hereto and all references to “Exhibit D” in
the Purchase Agreement are hereby replaced with “Exhibits D-1
and D-2.”

Section
1.10           Amendment and
Restatement of Exhibits and Schedules to
the Purchase Agreement.  Exhibits A and A-1 and Schedules 1.2(e), 1.3(e), 5.7(a) and 5.13
to the Purchase Agreement are hereby amended and restated in their entirety to
read as set forth on Exhibits A and A-1 and Schedules 1.2(e), 1.3(e),
5.7(a) and 5.13,
respectively, attached hereto.

Section 1.11           Transition Operations.  Purchaser has requested that for the duration
of the transition period set forth in the Transition Services Agreement, Seller
shall seek to continue the employment of each individual listed on Exhibit X attached hereto (collectively, the “Employees”);
provided, that Seller shall not be required to change any terms of employment
of such Employee in order to induce such Employee to remain in the employ of
Seller or any Affiliate thereof during the transition period.  The Employees will continue to provide the
same services for the Properties as they provided prior to the Closing. In
addition, Purchaser has requested that for the duration of the transition
period set forth in the Transition Services Agreement, Seller extend the term
of that certain Contract Operating Agreement dated March 1, 2006 (the “Brammer
Agreement”), between Kerr-McGee Oil & Gas Onshore, LLC and Brammer
Engineering, Inc. covering certain services related to those Properties located
in the Iowa, Louisiana field.  Purchaser
agrees (i) to pay all costs and expenses associated with such continued
employment of the Employees during the transition period including, but not
limited to, the cost and expense of any employee benefits and increase of
severance arrangements previously offered by Seller to such employee, (ii) to
reimburse Seller within ten (10) days after

 4
 

receipt of an invoice therefor all costs and expenses
related to such extension of the term of the Brammer Agreement, and (iii) to
indemnify, defend, and hold harmless the Seller Indemnified Persons from and
against any and all Losses asserted against, resulting from, imposed upon, or
incurred or suffered by any Seller Indemnified Person, directly or indirectly,
to the extent resulting from, arising out of, or relating to the continued
employment of the Employees and extension of the term of the Brammer Agreement
during the transition period.  The costs
and expenses associated with the continued employment of the Employees during
the transition period shall be deemed Assumed Seller Obligations under the
Purchase Agreement and Seller and Purchaser hereby agree that the Purchase
Price will be increased by an amount equal to $150,811 to cover such costs and
expenses.  Seller and Purchaser further
agree that such increase to the Purchase Price shall be treated as an
adjustment to Purchase Price under Section 2.2 of the Purchase Agreement.

Section 1.12           Certificates of Title.  As soon as reasonably possible following
Closing, but no later than June 13, 2007, Seller shall deliver all
documentation necessary to transfer title to the vehicles owned by either
Seller or any of their respective Affiliates and included among the Assets.

ARTICLE
II

DESIGNATION

Section 2.1             Designation.  Purchaser hereby designates Southern G to
take title to the Gulf Coast Assets and to assume the Assumed Gulf Coast Seller
Obligations by execution and delivery of the Conveyance attached hereto as Exhibit B-2.  Southern
G shall not have the rights or obligations of a purchaser under the Purchase
Agreement, as amended hereby, which rights and obligations shall be retained
entirely by Purchaser, including as to the Gulf Coast Assets and the Assumed
Gulf Coast Seller Obligations.

ARTICLE
III

MISCELLANEOUS

Section 3.1             Severability.  If any term or other provisions of this
Amendment is held invalid, illegal or incapable of being enforced under any
rule of Law, all other conditions and provisions of this Amendment shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in a
materially adverse manner with respect to either party; provided, however, that
if any such term or provision may be made enforceable by limitation thereof,
then such term or provision shall be deemed to be so limited and shall be
enforceable to the maximum extent permitted by applicable Law

Section 3.2             Governing Law and Venue.  THIS AMENDMENT AND THE LEGAL RELATIONS
BETWEEN THE PARTIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS
OTHERWISE APPLICABLE TO SUCH DETERMINATIONS. 
JURISDICTION AND VENUE WITH RESPECT TO ANY DISPUTES ARISING HEREUNDER
SHALL BE PROPER ONLY IN HARRIS COUNTY, TEXAS.

 5
 

Section 3.3             Counterparts. This Amendment
may be executed and delivered (including by facsimile transmission) in
counterparts, each of which shall be deemed an original instrument, but all
such counterparts together shall constitute but one agreement.

Section 3.4             Ratification.  The parties hereto hereby ratify and approve
the Purchase Agreement, as amended hereby, and the parties hereto acknowledge
that all of the terms and provisions of the Purchase Agreement, as amended
hereby, are and remain in full force and effect.

[Signature Page Follows]

 6

IN WITNESS WHEREOF, this Amendment is executed by the
parties hereto as of the date set forth above.

	
  

  	
  ANADARKO
  PETROLEUM CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Albert L.
  Richey

  	
   

  
	
   

  	
  Name: Albert L.
  Richey

  
	
   

  	
  Title: Vice
  President, Corporate Development

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ANADARKO
  E&P COMPANY LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Albert L.
  Richey

  	
   

  
	
   

  	
  Name: Albert L.
  Richey

  
	
   

  	
  Title: Vice
  President, Corporate Development

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOWELL
  PETROLEUM CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Albert L.
  Richey

  	
   

  
	
   

  	
  Name: Albert L.
  Richey

  
	
   

  	
  Title: Vice President,
  Corporate Development

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KERR-MCGEE
  OIL & GAS ONSHORE LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Albert L.
  Richey

  	
   

  
	
   

  	
  Name: Albert L.
  Richey

  
	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ANDARKO
  GATHERING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Albert L.
  Richey

  	
   

  
	
   

  	
  Name: Albert L.
  Richey

  
	
   

  	
  Title: Vice
  President, Corporate Development

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXCO
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. L. Hodges

  	
   

  
	
   

  	
  Name: R. L.
  Hodges

  
	
   

  	
  Title: Vice
  President – LandExhibit 10.4

EXECUTION VERSION

MEMBERSHIP
INTEREST PURCHASE AND SALE AGREEMENT

BY
AND AMONG

EXCO
RESOURCES, INC.,

SOUTHERN
G HOLDINGS, LLC

AND

CRIMSON
EXPLORATION INC.

AND

CRIMSON
EXPLORATION OPERATING, INC.

AS
PURCHASER

Executed on May 8, 2007

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1

  	
   

  	
   

  
	
  PURCHASE AND
  SALE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Purchase and Sale

  	
   

  	
  2

  
	
  Section 1.2.

  	
  Assets

  	
   

  	
  2

  
	
  Section 1.3.

  	
  Anadarko Retained Assets

  	
   

  	
  3

  
	
  Section 1.4.

  	
  Effective Time; Proration of Costs and Revenues

  	
   

  	
  4

  
	
  Section 1.5.

  	
  Delivery and Maintenance of Records

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
   

  
	
  PURCHASE PRICE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Purchase Price

  	
   

  	
  6

  
	
  Section 2.2.

  	
  Adjustments to Cash Purchase Price

  	
   

  	
  6

  
	
  Section 2.3.

  	
  Allocation of Purchase Price for Tax Purposes

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
  TITLE MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Seller’s Title

  	
   

  	
  8

  
	
  Section 3.2.

  	
  Definition of Defensible Title

  	
   

  	
  8

  
	
  Section 3.3.

  	
  Definition of Permitted Encumbrances

  	
   

  	
  10

  
	
  Section 3.4.

  	
  Notice of Title Defect Adjustments

  	
   

  	
  12

  
	
  Section 3.5.

  	
  Casualty or Condemnation Loss

  	
   

  	
  12

  
	
  Section 3.6.

  	
  Government Approvals Respecting Assets

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
   

  
	
  ENVIRONMENTAL
  MATTERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Environmental Access

  	
   

  	
  13

  
	
  Section 4.2.

  	
  NORM, Wastes and Other Substances

  	
   

  	
  14

  
	
  Section 4.3.

  	
  Environmental Defects

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF SELLER AND THE COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Generally

  	
   

  	
  15

  
	
  Section 5.2.

  	
  Existence; Qualification and Capitalization

  	
   

  	
  15

  
	
  Section 5.3.

  	
  Power

  	
   

  	
  16

  
	
  Section 5.4.

  	
  Authorization and Enforceability

  	
   

  	
  16

  
	
  Section 5.5.

  	
  No Conflicts

  	
   

  	
  16

  
	
  Section 5.6.

  	
  Liability for Brokers’ Fees

  	
   

  	
  17

  
	
  Section 5.7.

  	
  No Business Conduct

  	
   

  	
  17

  
	
  Section 5.8.

  	
  Anadarko Purchase Agreement

  	
   

  	
  17

  
						

 

 

	
  Section 5.9.

  	
  Litigation

  	
   

  	
  18

  
	
  Section 5.10.

  	
  Disregarded Entity

  	
   

  	
  18

  
	
  Section 5.11.

  	
  Contract Review

  	
   

  	
  18

  
	
  Section 5.12.

  	
  Preference Rights and Transfer Requirements

  	
   

  	
  19

  
	
  Section 5.13.

  	
  No Conveyances, Liens or Transfers

  	
   

  	
  19

  
	
  Section 5.14.

  	
  Investment Representations

  	
   

  	
  19

  
	
  Section 5.15.

  	
  Casualty or Condemnation Losses

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF PURCHASER AND CRIMSON PARENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Existence and Qualification

  	
   

  	
  20

  
	
  Section 6.2.

  	
  Power

  	
   

  	
  20

  
	
  Section 6.3.

  	
  Authorization and Enforceability

  	
   

  	
  20

  
	
  Section 6.4.

  	
  No Conflicts

  	
   

  	
  20

  
	
  Section 6.5.

  	
  Liability for Brokers’ Fees

  	
   

  	
  21

  
	
  Section 6.6.

  	
  Litigation

  	
   

  	
  21

  
	
  Section 6.7.

  	
  Financing

  	
   

  	
  21

  
	
  Section 6.8.

  	
  Limitation

  	
   

  	
  21

  
	
  Section 6.9.

  	
  SEC Disclosure

  	
   

  	
  22

  
	
  Section 6.10.

  	
  Bankruptcy

  	
   

  	
  22

  
	
  Section 6.11.

  	
  Capitalization of Crimson Parent

  	
   

  	
  22

  
	
  Section 6.12.

  	
  Certificate of Incorporation and By-Laws

  	
   

  	
  23

  
	
  Section 6.13.

  	
  SEC Documents and Other Reports of Crimson Parent

  	
   

  	
  23

  
	
  Section 6.14.

  	
  No Required Vote of Crimson Parent Stockholders

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
   

  
	
  COVENANTS OF THE
  PARTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Statements of Revenues and Expenses

  	
   

  	
  23

  
	
  Section 7.2.

  	
  Government Reviews

  	
   

  	
  24

  
	
  Section 7.3.

  	
  Public Announcements

  	
   

  	
  25

  
	
  Section 7.4.

  	
  Tax Matters

  	
   

  	
  25

  
	
  Section 7.5.

  	
  Further Assurances

  	
   

  	
  25

  
	
  Section 7.6.

  	
  Anadarko Purchase Agreement

  	
   

  	
  25

  
	
  Section 7.7.

  	
  Insurance

  	
   

  	
  26

  
	
  Section 7.8.

  	
  Transition Services Agreement

  	
   

  	
  26

  
	
  Section 7.9.

  	
  Preference Rights and Transfer Requirements

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
   

  
	
  CLOSING

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  Time and Place of Closing

  	
   

  	
  27

  
	
  Section 8.2.

  	
  Obligations of Seller at Closing

  	
   

  	
  28

  
	
  Section 8.3.

  	
  Obligations of Purchaser at Closing

  	
   

  	
  28

  
	
  Section 8.4.

  	
  Closing Adjustments

  	
   

  	
  28

  

 

 ii
 

 

	
  ARTICLE 9

  	
   

  	
   

  
	
  POST-CLOSING
  OBLIGATIONS; INDEMNIFICATION; LIMITATIONS; DISCLAIMERS AND WAIVERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Receipts

  	
   

  	
  30

  
	
  Section 9.2.

  	
  Expenses

  	
   

  	
  30

  
	
  Section 9.3.

  	
  Assumed Anadarko Obligations

  	
   

  	
  31

  
	
  Section 9.4.

  	
  Survival

  	
   

  	
  32

  
	
  Section 9.5.

  	
  Indemnification by Seller

  	
   

  	
  32

  
	
  Section 9.6.

  	
  Indemnification by Purchaser

  	
   

  	
  33

  
	
  Section 9.7.

  	
  Indemnification Proceedings

  	
   

  	
  34

  
	
  Section 9.8.

  	
  Limitations on Indemnities

  	
   

  	
  36

  
	
  Section 9.9.

  	
  Release

  	
   

  	
  37

  
	
  Section 9.10.

  	
  Disclaimers

  	
   

  	
  37

  
	
  Section 9.11.

  	
  Waiver of Trade Practices Acts

  	
   

  	
  38

  
	
  Section 9.12.

  	
  Redhibition Waiver

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
  Counterparts

  	
   

  	
  39

  
	
  Section 10.2.

  	
  Notice

  	
   

  	
  39

  
	
  Section 10.3.

  	
  Sales or Use Tax Recording Fees and Similar Taxes
  and Fees

  	
   

  	
  40

  
	
  Section 10.4.

  	
  Expenses

  	
   

  	
  40

  
	
  Section 10.5.

  	
  Change of Name

  	
   

  	
  41

  
	
  Section 10.6.

  	
  Replacement of Bonds, Letters of Credit and
  Guarantees

  	
   

  	
  41

  
	
  Section 10.7.

  	
  Governing Law and Venue

  	
   

  	
  41

  
	
  Section 10.8.

  	
  Captions

  	
   

  	
  41

  
	
  Section 10.9.

  	
  Waivers

  	
   

  	
  41

  
	
  Section 10.10.

  	
  Assignment

  	
   

  	
  42

  
	
  Section 10.11.

  	
  Entire Agreement

  	
   

  	
  42

  
	
  Section 10.12.

  	
  Amendment

  	
   

  	
  42

  
	
  Section 10.13.

  	
  No Third-Party Beneficiaries

  	
   

  	
  42

  
	
  Section 10.14.

  	
  References

  	
   

  	
  42

  
	
  Section 10.15.

  	
  Construction

  	
   

  	
  43

  
	
  Section 10.16.

  	
  Conspicuousness

  	
   

  	
  43

  
	
  Section 10.17.

  	
  Severability

  	
   

  	
  43

  
	
  Section 10.18.

  	
  Time of Essence

  	
   

  	
  43

  
	
  Section 10.19.

  	
  Affiliate Liability

  	
   

  	
  44

  
	
  Section 10.20.

  	
  Schedules

  	
   

  	
  44

  
	
  Section 10.21.

  	
  Limitation on Damages

  	
   

  	
  44

  

 

 iii
 

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “A”

  	
   

  	
  Leases and Mineral Interests

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit ”A-1”

  	
   

  	
  Wells, Future Wells and Units

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit ”B”

  	
   

  	
  Anadarko Purchase Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “C”

  	
   

  	
  Assignment of Membership Interest

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “D”

  	
   

  	
  Registration Rights Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit ”E”

  	
   

  	
  Seismic License

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “F”

  	
   

  	
  Third Amendment to Anadarko Purchase Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit ”G”

  	
   

  	
  Title Defect Notice

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit ”H”

  	
   

  	
  Environmental Defect Notice

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit ”I”

  	
   

  	
  Transition Services Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “J”

  	
   

  	
  Preliminary Settlement Statement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “K”

  	
   

  	
  First Amendment Letter Agreement to Anadarko
  Purchase Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit “L”

  	
   

  	
  Second Amendment to Anadarko Purchase Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
  Schedule 1.4

  	
   

  	
  Overhead Amounts

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 5.2

  	
   

  	
  Limited Liability Company Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 5.5

  	
   

  	
  Preference Rights and Transfer Requirements

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 9.3

  	
   

  	
  Proceedings

  	
   

  	
   

  

 iv
 

DEFINITIONS

“actual knowledge” has the meaning set forth in Section 5.1(b).

“Adjusted Purchase Price” shall mean the Purchase
Price after calculating and applying the adjustments set forth in Section 2.2 to the Cash Purchase Price.

“Adjustment Period” has the meaning set forth in Section 2.2(a).

“Affiliates” with respect to any Person, means any
Person that directly or indirectly controls, is controlled by or is under
common control with such Person.  The
concept of control, controlling or controlled as used in the aforesaid context
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of another, whether through the
ownership of voting securities, by contract or otherwise.  No Person shall be deemed an Affiliate of any
Person by reason of the exercise or existence of rights, interests or remedies
under this Agreement.

“Agreed Accounting Firm” has the meaning set forth in Section 8.4(b).

“Agreed Interest Rate” means the rate of interest
published in the Wall Street Journal from time to
time, as the one month London Interbank Offered Rate (LIBOR) plus 75 basis
points, with adjustments in that rate to be made on the same day as any change
in that rate.

“Agreement” means this Purchase and Sale Agreement.

“Allocated Value” has the meaning set forth in Section 2.3.

“Anadarko” has the meaning set forth in the Recitals
hereto.

“Anadarko Closing” means the consummation of the
transactions contemplated by the Anadarko Purchase Agreement.

“Anadarko Closing Date” means the date of the Anadarko
Closing.

“Anadarko Deductible” means the Deductible as defined
in the Anadarko Purchase Agreement.

“Anadarko Purchase Agreement” has the meaning set
forth in the Recitals hereto and is attached as Exhibit B
as the Anadarko Purchase Agreement is in effect on the date hereof.

“Anadarko Purchase Price” means the Purchase Price as
defined in the Anadarko Purchase Agreement.

“Anadarko Retained Assets” has the meaning set forth
in Section 1.3.

“Anadarko Warranties” means the representations and
warranties of Anadarko contained in the Anadarko Purchase Agreement insofar as
such representations and warranties relate to the Assets and the Assumed
Anadarko Obligations.

“Assessment” has the meaning set forth in Section 4.1.

 v
 

“Assets” has the meaning set forth in Section 1.2.

“Assignment of Membership Interest” means that certain
Assignment of Membership Interest in the form attached hereto as Exhibit C.

“Assumed Anadarko Obligations” has the meaning set
forth in Section 9.3.

“Business Day” means each calendar day except
Saturdays, Sundays, and Federal holidays.

“Cash Purchase Price” has the meaning set forth in Section 2.1.

“CERCLA” has the meaning set forth in the definition
of Environmental Laws.

“Claim Notice” has the meaning set forth in Section 9.4(b).

“Closing” has the meaning set forth in Section 8.1.

“Closing Date” has the meaning set forth in Section 8.1.

“Closing Payment” has the meaning set forth in Section 8.4(a).

“Code” means the United States Internal Revenue Code
of 1986, as amended.

“Company” has the meaning set forth in the preamble
hereto.

“Contracts” has the meaning set forth in Section 1.2(d).

“Crimson Parent” has the meaning set forth in the
preamble hereto.

“Crimson Parent Common Stock” has the meaning set
forth in Section 2.1.

“Crimson Parent SEC Documents” has the meaning set
forth in Section 6.13.

“Deductible” has the meaning set forth in Section 9.8(a).

“Defensible Title” has the meaning set forth in Section 3.2.

“DTPA” has the meaning set forth in Section 9.11(a).

“Due Diligence Materials” has the meaning set forth in
Section 4.1.

“Earned” has the meaning set forth in Section 1.4(b).

“Effective Time” has the meaning set forth in Section 1.4(a).

“Environmental Defect” has the meaning set forth in Section 4.3.

“Environmental Defect Amount” has the meaning set
forth in Section 4.3.

“Environmental Defect Notice” has the meaning set
forth in Section 4.3.

 vi
 

“Environmental Laws” means, as the same may have been
amended, any federal, state or local statute, law, regulation, ordinance, rule,
order or decree including any rule of common law, relating to (i) the control
of any potential pollutant or protection of the environment, including air,
water or land, (ii) the generation, handling, treatment, storage, disposal or
transportation of waste materials, or (iii) the regulation of or exposure to
hazardous, toxic or other substances alleged to be harmful, including, but not
limited to, the Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. § 9601 et seq. (“CERCLA”); the Resource
Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (“RCRA”); the
Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Clean
Air Act, 42 U.S.C. § 7401 et seq. the Hazardous Materials Transportation
Act, 49 U.S.C. § 1471 et seq.; the Toxic Substances Control Act, 15
U.S.C. §§ 2601 through 2629; the Oil Pollution Act, 33 U.S.C. § 2701 et seq.;
the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. § 11001 et
seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j; the
Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. § 136 et seq.; the
Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; the
Atomic Energy Act, 42 U.S.C. § 2011 et seq.; and all applicable related
law, whether local, state, territorial, or national, of any Governmental Body
having jurisdiction over the property in question addressing pollution or
protection of human health, safety, natural resources or the environment and
all regulations implementing the foregoing. 
The term “Environmental Laws” includes all judicial and administrative
decisions, orders, directives, and decrees issued by a Governmental Body
pursuant to the foregoing.

“Environmental Liabilities” means any and all
environmental response costs (including costs of remediation), damages, natural
resource damages, settlements, consulting fees, expenses, penalties, fines, orphan
share, prejudgment and post-judgment interest, court costs, attorneys’ fees,
and other liabilities incurred or imposed (i) pursuant to any order, notice of
responsibility, directive (including requirements embodied in Environmental
Laws), injunction, judgment or similar act (including settlements) by any
Governmental Body to the extent arising out of any violation of, or remedial
obligation under, any Environmental Laws which are attributable to the
ownership or operation of the Assets prior to the Effective Time or (ii)
pursuant to any claim or cause of action by a Governmental Body or other Person
for personal injury, property damage, damage to natural resources, remediation
or response costs to the extent arising out of any violation of, or any remediation
obligation under, any Environmental Laws which is attributable to the ownership
or operation of the Assets prior to the Closing.

“Equipment” has the meaning set forth in Section 1.2(f).

“Event” has the meaning set forth in the definition of
Material Adverse Effect.

“Exchange Act” means the Securities Exchange Act of
1934, as amended, together with the rules and regulations of the SEC
promulgated thereunder.

“Excluded Anadarko Obligations” means Excluded Seller
Obligations (as such term is defined in the Anadarko Purchase Agreement) that
relate to the Assets.

“Final Cash Purchase Price” has the meaning set forth
in Section 8.4(b).

“Final Settlement Date” has the meaning set forth in Section 8.4(b).

 vii
 

“First Amendment” has the meaning set forth in the Recitals.

“Fundamental Representations” has the meaning set
forth in Section 9.4(a).

“Future Well” means a well to be drilled in the future
on a Future Well Location, which (for the purposes of determining Defensible
Title thereto and any Title Defects associated therewith pursuant to this
Agreement) shall be treated as if such well had been drilled and completed and
was in existence at or prior to the Effective Time.

“Future Well Location” means each drilling location
identified on Exhibit A-1, subject to any
depth restriction set forth in such Exhibit A-1
with respect to such location.

“GAAP” means generally accepted accounting principles
in effect in the United States as amended from time to time.

“Governmental Body” or “Governmental Bodies” means any
federal, state, local, municipal, or other government; any governmental,
regulatory or administrative agency, commission, body, arbitrator or
arbitration panel or other authority exercising or entitled to exercise any
administrative, executive, judicial, legislative, police, regulatory or taxing
authority or power; and any court or governmental tribunal.

“Hazardous Material” means (i) any “hazardous
substance,” as defined by CERCLA, (ii) any “hazardous waste” or “solid waste,”
in either case as defined by RCRA, and any analogous state statutes, and any
regulations promulgated thereunder, (iii) any solid, hazardous, dangerous or
toxic chemical, material, waste or substance, within the meaning of and
regulated by any applicable Environmental Laws, (iv) any radioactive material,
including any naturally occurring radioactive material, and any source, special
or byproduct material as defined in 42 U.S.C. 2011 et seq. and any
amendments or authorizations thereof, (v) any regulated asbestos-containing
materials in any form or condition, (vi) any regulated polychlorinated
biphenyls in any form or condition, and (vii) petroleum, petroleum hydrocarbons
or any fraction or byproducts thereof.

“HSR Act” means the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended.

“Hydrocarbons” means oil, gas, casinghead gas,
condensate and other gaseous and liquid hydrocarbons or any combination thereof
and sulphur and other minerals extracted from or produced with the foregoing.

“Imbalance” or “Imbalances” means any over-production,
under-production, over-delivery, under-delivery or similar imbalance of
Hydrocarbons produced from or allocated to the Assets, regardless of whether
such over-production, under-production, over-delivery under-delivery or similar
imbalance arises at the platform, wellhead, pipeline, gathering system,
transportation system, processing plant or other location.

“incurred” has the meaning set forth in Section 1.4(b).

“Indemnified Party” has the meaning set forth in Section 9.7(a).

“Indemnifying Party” has the meaning set forth in Section 9.7(a).

 viii
 

“Invasive Activity” has the meaning set forth in Section 4.1.

“Lands” has the meaning set forth in Section 1.2(a).

“Laws” means all statutes, laws, rules, regulations,
ordinances, orders, and codes of Governmental Bodies.

“Leases” has the meaning set forth in Section 1.2(a).

“Lien” means any mortgage, pledge, hypothecation,
lien, preference, security interest or other encumbrance.

“Losses” means any and all debts, obligations and
other liabilities (whether absolute, accrued, contingent, fixed or otherwise,
or whether known or unknown, or due or to become due or otherwise), diminution
in value, monetary damages, fines, fees, Taxes, penalties, interest
obligations, deficiencies, losses and expenses (including amounts paid in
settlement, interest, court costs, costs of investigators, reasonable fees and
expenses of attorneys, accountants, financial advisors and other experts, and
other actual out of pocket expenses incurred in investigating and preparing for
or in connection with any Proceeding).

“Lowest Cost Response” means the response required or
allowed under Environmental Laws that addresses the condition present at the
lowest cost (considered as a whole taking into consideration any material
negative impact such response may have on the operations of the relevant assets
and any potential material additional costs or liabilities that may likely
arise as a result of such response) as compared to any other response that is
required or allowed under Environmental Laws.

“Material Adverse Effect” means any change,
inaccuracy, circumstance, effect, event, result, occurrence, condition or fact
(each an “Event”) (whether or not (i) foreseeable or known as of the date of
this Agreement or (ii) covered by insurance) that has had, or could reasonably
be expected to have, a material adverse effect on (i) the ownership, operation
or value of the Assets, taken as a whole, or (ii) the ability of Seller to
consummate the transactions contemplated hereby.  Excluded from such Events for the purposes of
determining whether a “Material Adverse Affect” has occurred or could
reasonably be expected to occur are (A) Events resulting from entering into
this Agreement or the announcement of the transactions contemplated by this
Agreement, (B) Events resulting from changes in general market, economic,
financial or political conditions or any outbreak of hostilities or war, (C)
Events that affect the Hydrocarbon exploration, production, development,
processing, gathering and/or transportation industry generally (including
changes in commodity prices or general market prices in the Hydrocarbon
exploration, production, development, processing, gathering and/or
transportation industry generally), and (D) any effect resulting from a change
in Laws or regulatory policies.

“Mineral Interests” has the meaning set forth in Section 1.2(a).

“Net Revenue Interest” has the meaning set forth in Section 3.2(a).

“NORM” means naturally occurring radioactive material.

 ix
 

“Notice Period” has the meaning set forth in Section 9.7(a).

“Permitted Encumbrances” has the meaning set forth in Section 3.3.

“Person” means any individual, firm, corporation,
partnership, limited liability company, joint venture, association, trust,
unincorporated organization, Governmental Body or any other entity.

“Personal Property” has the meaning set forth in Section 1.2(g).

“Pipelines” has the meaning set forth in Section 1.2(g).

“Preference Property” has the meaning set forth in Section 7.7.

“Preference Right” means any right or agreement that
enables any Person to purchase or acquire any Asset or any interest therein or
portion thereof as a result of or in connection with (i) the sale, assignment
or other transfer of any Asset or any interest therein or portion thereof or
(ii) the execution or delivery of this Agreement or the consummation or
performance of the terms and conditions contemplated by this Agreement.

“Proceeding” or “Proceedings” means any proceeding,
arbitrations, action, suit, pending settlement, or other legal proceeding of
any kind or nature by or before any Governmental Body.

“Properties” has the meaning set forth in Section 1.2(c).

“Property Costs” has the meaning set forth in Section 1.4(a).

“Proprietary Seismic Data” means all of Seller’s
proprietary geophysical, seismic and geological data collected or obtained from
any 3D seismic surveys, covering the Lands, including any processed or
reprocessed data.

“Purchase Price” has the meaning set forth in Section 2.1.

“Purchased Shares” has the meaning set forth in Section 2.1.

“Purchaser” has the meaning set forth in the preamble
hereto.

“Purchaser Indemnified Persons” has the meaning set
forth in Section 9.5.

“RCRA” has the meaning set forth in the definition of
Environmental Laws.

“Records” has the meaning set forth in Section 1.2(i).

“REGARDLESS OF FAULT” MEANS WITHOUT REGARD TO THE
CAUSE OR CAUSES OF ANY CLAIM, INCLUDING, WITHOUT LIMITATION, EVEN THOUGH A
CLAIM IS CAUSED IN WHOLE OR IN PART BY:

OTHER THAN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT,
THE NEGLIGENCE (WHETHER SOLE, JOINT, CONCURRENT, COMPARATIVE, 

 x
 

CONTRIBUTORY, ACTIVE OR PASSIVE), STRICT
LIABILITY, OR OTHER FAULT OF THE SELLER INDEMNIFIED PERSONS; AND/OR

A PRE-EXISTING DEFECT, WHETHER PATENT OR LATENT,
OF THE PREMISES OF PURCHASER’S PROPERTY OR SELLER’S PROPERTY (INCLUDING WITHOUT
LIMITATION THE ASSETS), INVITEES AND/OR THIRD PARTIES; AND/OR

THE UNSEAWORTHINESS OF ANY VESSEL OR
UNAIRWORTHINESS OF ANY AIRCRAFT OF A PARTY WHETHER CHARTERED, OWNED, OR
PROVIDED BY THE PURCHASER INDEMNIFIED PERSONS, SELLER INDEMNIFIED PERSONS, INVITEES
AND/OR THIRD PARTIES.

“Registration Rights Agreement” means that certain
Registration Rights Agreement, by and between Crimson Parent and Seller in the
form attached hereto as Exhibit D.

“Retained Preference Property” has the meaning set
forth in Section 7.9.

“Retained TR Assets” has the meaning set forth in Section 7.9.

“Royalty Amounts” has the meaning set forth in Section 9.3.

“SEC” has the meaning set forth in Section 6.13.

“Second Amendment” has the meaning set forth in the
Recitals.

“Securities Act” means the Securities Act of 1933, as
amended, together with the rules and regulations of the SEC promulgated
thereunder.

“Seismic License” means that certain seismic license
covering Proprietary Seismic Data in the form attached hereto as Exhibit E.

“Seller” has the meaning set forth in the preamble
hereto.

“Seller Credit Agreement” means the Second Amended and
Restated Credit Agreement, dated as of May 2, 2007, among Seller, as borrower,
certain subsidiaries of Seller, as guarantors, the lenders party thereto,
JPMorgan Chase Bank, N.A., as administrative agent, and J.P. Morgan Securities
Inc., as sole bookrunner and lead arranger.

“Seller Indemnified Persons” has the meaning set forth
in Section 9.6.

“Seller Indenture” means the Indenture, dated as of
January 20, 2004, as amended and supplemented, among Seller, certain
subsidiaries of Seller as guarantors, and Wilmington Trust Company, a Delaware
banking corporation, as trustee, that governs Seller’s 7 1⁄4% Senior Notes Due
2011.

“Stock Purchase Price” has the meaning set forth in Section 2.1.

“Surface Contracts” has the meaning set forth in Section 1.2(e).

 xi
 

“Tax Allocated Value” has the meaning set forth in Section 2.3.

“Taxes” means all federal, state, local, and foreign
income, profits, franchise, sales, use, ad valorem, property, severance,
production, excise, stamp, documentary, real property transfer or gain, gross
receipts, goods and services, registration, capital, transfer, or withholding
taxes or other governmental fees or charges imposed by any Governmental Body,
including any interest, penalties or additional amounts which may be imposed
with respect thereto.

“Tax Returns” means all reports, returns, statements
(including estimated reports, returns or statements) and other similar filings
with respect to all Taxes related to the Company or the Assets required to be
filed by Seller or the Company.

“Third Amendment” has the meaning set forth in the
Recitals.

“Third Party Claim” has the meaning set forth in Section 9.7(a).

“Title Claim Date” has the meaning set forth in Section 3.4(a).

“Title Defect” has the meaning set forth in Section 3.2(d).

“Title Defect Notice” has the meaning set forth in Section 3.4(a).

“Transfer Requirement” means any consent, approval,
authorization or permit of, or filing with or notification to, any Person which
is required to be obtained, made or complied with for or in connection with any
sale, assignment or transfer of any Asset or any interest therein; provided, however, that “Transfer
Requirement” shall not include any consent of, notice to, filing with, or other
action by any Governmental Body in connection with the sale or conveyance of
oil and/or gas leases or interests therein or Surface Contracts or interests
therein, if they are not required prior to the assignment of such oil and/or
gas leases, Surface Contracts or interests or they are customarily obtained
subsequent to the sale or conveyance (including consents from state agencies).

“Transfer Taxes” has the meaning set forth in Section 10.3.

“Transition Services Agreement” has the meaning set
forth in Section 7.8.

“Units” has the meaning set forth in Section 1.2(c).

“UTPCPL” has the meaning set forth in Section 9.11(a).

“Warranty Well” means a Well or a Future Well, as the
context requires.

“Wells” has the meaning set forth in Section 1.2(b).

 xii

MEMBERSHIP
INTEREST PURCHASE AND SALE AGREEMENT

This Membership Interest Purchase and Sale Agreement
(the “Agreement”) is executed on May 8, 2007, by and among EXCO Resources,
Inc., a Texas corporation (“Seller”), Southern G Holdings, LLC, a Delaware
limited liability company (the “Company”), Crimson Exploration Inc., a Delaware
corporation (“Crimson Parent”), and Crimson Exploration Operating, Inc., a
Delaware corporation  and
wholly-owned subsidiary of Crimson Parent  (“Purchaser”).

RECITALS

A.            Seller
formed the Company on March 9, 2007 and owns 100% of the outstanding
membership interests (the “Interests”) in the Company.

B.            Seller
is a party to that certain Purchase and Sale Agreement, dated February 1,
2007, by and among Anadarko Petroleum Corporation, Anadarko E&P Company LP,
Howell Petroleum Corporation, Kerr-McGee Oil & Gas Onshore LP
(collectively, “Anadarko”) and Seller (the “Original Anadarko Purchase
Agreement”), pursuant to which Seller purchased certain oil and gas properties
from Anadarko, including, among others, the Assets.

C.            On
April 13, 2007, Anadarko and Seller entered into the First Amendment Letter
Agreement, a copy of which has been attached hereto as Exhibit K
(the “First Amendment”).

D.            On
May 1, 2007, Anadarko and Seller entered into the Second Amendment to Purchase
and Sale Agreement, a copy of which has been attached hereto as Exhibit L (the “Second Amendment”).

E.             On
the Anadarko Closing Date, Anadarko, Seller and the Company entered into the
Third Amendment to Purchase and Sale Agreement, a copy of which has been
attached hereto as Exhibit F (the “Third
Amendment”), pursuant to which the Company was designated to take title to the
Assets and to assume the Assumed Anadarko Obligations (the Original Anadarko
Purchase Agreement as so amended by the First Amendment, Second Amendment and
the Third Amendment, the “Anadarko Purchase Agreement”).

F.             Upon
the terms and conditions set forth in the Anadarko Purchase Agreement, the
Company took title to the Assets and assumed the Assumed Anadarko Obligations
at the Anadarko Closing.

G.            Seller
desires to sell to Purchaser and Purchaser desires to purchase from Seller all
right, title and interest of Seller in the Interests, in the manner and upon
the terms and conditions hereafter set forth.

NOW, THEREFORE, in consideration of the premises and
of the mutual promises, representations, warranties, covenants, conditions and
agreements contained herein, and for other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending
to be legally bound by the terms hereof, agree as follows:

 1
 

ARTICLE 1

PURCHASE AND SALE

Section 1.1.           Purchase and Sale.

At the Closing, and upon the terms of this Agreement,
Seller agrees to sell, transfer and convey the Interests to Purchaser, and
Purchaser agrees to purchase, accept and pay for the Interests.

Section 1.2.           Assets.

As used herein, the term “Assets” means, subject to
the terms and conditions of this Agreement, all of the Company’s right, title,
interest and estate, real or personal, recorded or unrecorded, movable or
immovable, tangible or intangible, in and to the following (but excluding the
Anadarko Retained Assets):

(a)           All
(i) of the oil and gas leases; subleases and other leaseholds; carried
interests; farmout rights; options; and other properties and interests
described on Exhibit A, subject to such
depth limitations and other restrictions as may be set forth on Exhibit A (collectively, the “Leases”) and (ii) fee
mineral interests, fee royalty interests and other fee interests in oil, gas
and other minerals described on Exhibit A
(collectively, the “Mineral Interests”), (in each case) together with each and
every kind and character of right, title, claim, and interest that the Company
has in and to the lands covered by the Leases and the Mineral Interests and the
interests currently pooled, unitized, communitized or consolidated therewith
(the “Lands”);

(b)           All
oil, gas, water or injection wells located on the Lands, whether producing,
shut-in, or temporarily abandoned, including the interests in the wells shown
on Exhibit A-1 attached hereto
(collectively, the “Wells”);

(c)           All
interests of the Company in or to any currently existing pools or units which
include any Lands or all or a part of any Leases or Mineral Interests or
include any Wells, including those pools or units shown on Exhibit A-1
(the “Units”; the Units, together with the Leases, Mineral Interests, Lands and
Wells, being hereinafter referred to as the “Properties”), and including all
interests of the Company in production of Hydrocarbons from any such Unit,
whether such Unit production of Hydrocarbons comes from Wells located on or off
of a Lease or the Mineral Interests, and all tenements, hereditaments and
appurtenances belonging to the Leases, the Mineral Interests and Units;

(d)           All
contracts, agreements and instruments by which the Properties are bound or
subject, or that relate to or are otherwise applicable to the Properties, only
to the extent applicable to the Properties rather than Seller’s or any of its
Affiliates’ other properties, including but not limited to, operating
agreements, unitization, pooling and communitization agreements, declarations
and orders, joint venture agreements, farmin and farmout agreements,
exploration agreements, participation agreements, exchange agreements,
transportation or gathering agreements, agreements for the sale and purchase of
oil, gas or casinghead gas and processing agreements to the extent applicable
to the Properties or the production of Hydrocarbons produced in association
therewith from the Properties (hereinafter collectively referred to as “Contracts”),
but excluding any contracts, agreements and instruments to the extent 

 2
 

transfer would result in a violation of applicable Law or is restricted
by any Transfer Requirement that is not waived by Purchaser or satisfied and
provided that “Contracts” shall not include the instruments constituting the
Leases;

(e)           All
easements, permits, licenses, servitudes, rights-of-way, surface leases and
other surface rights (“Surface Contracts”) appurtenant to, and used or held for
use in connection with the Properties, but excluding any permits and other
rights to the extent transfer would result in a violation of applicable Law or
is restricted by any Transfer Requirement that is not waived by Purchaser or
satisfied;

(f)            All
treatment and processing plants and equipment, machinery, fixtures and other
tangible personal property and improvements located on the Properties or used
or held for use in connection with the operation of the Properties (“Equipment”);

(g)           All
flow lines, pipelines, gathering systems and appurtenances thereto located on
the Properties or used, or held for use, in connection with the operation of
the Properties (“Pipelines” and, together with the Equipment and Wells, “Personal
Property”);

(h)           All
Hydrocarbons produced from or attributable to the Leases, Mineral Interests,
Lands, and Wells from and after the Effective Time, together with Imbalances
associated with the Properties;

(i)            All
lease files; land files; well files; gas and oil sales contract files; gas
processing files; division order files; abstracts; title opinions; land
surveys; logs; maps; engineering data and reports; interpretive data, technical
evaluations and technical outputs; and other books, records, data, files, and
accounting records, in each case to the extent related to the Assets, or used
or held for use in connection with the maintenance or operation thereof, but
excluding (i) any books, records, data, files, logs, maps, evaluations,
outputs, and accounting records to the extent disclosure or transfer would
result in a violation of applicable Law or is restricted by any Transfer
Requirement that is not satisfied, (ii) computer or communications software or
intellectual property (including tapes, codes, data and program documentation
and all tangible manifestations and technical information relating thereto),
(iii) reserve studies and evaluations, and (iv) records relating to the
negotiation and consummation of the sale of the Interests (subject to such
exclusions, the “Records”); provided, however, that Seller may retain the originals of such
Records as Seller has reasonably determined may be required for existing
litigation, tax, accounting, and auditing purposes; and

(j)            All
vehicles or vessels used exclusively in connection with the Assets.

Section 1.3.           Anadarko Retained Assets.

Notwithstanding the foregoing, subject to Section 7.9, the Assets shall not include, and there is
excepted, reserved and excluded from the transaction contemplated hereby all
Assets not conveyed to the Company by Anadarko pursuant to the Anadarko
Purchase Agreement, including pursuant to Sections 3.4(d)(iii) and 7.7 of the
Anadarko Purchase Agreement (collectively, the “Anadarko Retained Assets”).

 3
 

Section 1.4.           Effective Time; Proration of Costs and Revenues.

(a)           Subject
to Section 1.5, possession of the
Interests shall be transferred from Seller to Purchaser at the Closing, but
certain financial benefits and burdens attributable to the Assets were transferred
from Anadarko to the Company effective as of 7:00 A.M., local time, where the
respective Assets are located, on January 1, 2007 (the “Effective Time”),
as described below.

(b)           Pursuant
to the Anadarko Purchase Agreement, the Company is entitled to the benefit of
all Hydrocarbon production from or attributable to the Properties at and after
the Effective Time (and all products and proceeds attributable thereto), and to
all other income, proceeds, receipts and credits earned with respect to the Assets
at or after the Effective Time, and is responsible for (and entitled to any
refunds with respect to) all Property Costs incurred at and after the Effective
Time.  Pursuant to the Anadarko Purchase
Agreement, Anadarko is entitled to the benefit of all Hydrocarbon production
from or attributable to the Properties prior to the Effective Time (and all
products and proceeds attributable thereto), and to all other income, proceeds,
receipts and credits earned with respect to the Assets prior to the Effective Time,
and is responsible for (and entitled to any refunds with respect to) all
Property Costs incurred prior to the Effective Time.  “Earned” and “incurred”, as used in this
Agreement, shall be interpreted in accordance with GAAP and Council of
Petroleum Accountants Society (COPAS) standards, as applicable.  “Property Costs” means all costs attributable
to the ownership and operation of the Assets (including without limitation
costs of insurance relating specifically to the Assets and ad valorem,
property, severance, Hydrocarbon production and similar Taxes based upon or
measured by the ownership or operation of the Assets or the production of
Hydrocarbons therefrom, but excluding any other Taxes) and capital expenditures
incurred in the ownership and operation of the Assets in the ordinary course of
business and, where applicable, in accordance with the relevant operating or
unit agreement, if any, and overhead costs charged to the Assets under the
relevant operating agreement or unit agreement, if any, or, if none, the
amounts shown under Schedule 1.4
shall be the overhead amounts deemed charged to the Assets, but excluding
without limitation liabilities, losses, costs, and expenses attributable to (i)
claims for personal injury or death, property damage or violation of any Law,
(ii) obligations to plug wells or dismantle, abandon and salvage facilities,
(iii) obligations to remediate any contamination of groundwater, surface water,
soil, Equipment or Pipelines under applicable Environmental Laws, (iv) obligations
to furnish make-up gas according to the terms of applicable gas sales,
gathering or transportation contracts, (v) gas balancing obligations and (vi)
obligations to pay working interests, royalties, overriding royalties or other
interests held in suspense, all of which are addressed in Article 9
or elsewhere in this Agreement.  For
purposes of this Section 1.4, determination of
whether Property Costs are attributable to the period before or after the
Effective Time shall be based on when services are rendered, when the goods are
delivered, or when the work is performed. 
For clarification, the date an item or work is ordered is not the date
of a pre-Effective Time transaction for settlement purposes, but rather the
date on which the item ordered is delivered to the job site, or the date on
which the work ordered is performed, shall be the relevant date.  For purposes of allocating Hydrocarbon
production (and accounts receivable with respect thereto), under this Section 1.4, (i) liquid Hydrocarbons shall be deemed to be “from
or attributable to” the Properties when they are placed into the storage
facilities and (ii) gaseous Hydrocarbons shall be deemed to be “from or
attributable to” the Properties when they pass through the delivery point sales
meters on the pipelines through which they are transported.  Anadarko shall utilize reasonable
interpolative procedures to arrive at an 

 4
 

allocation of Hydrocarbon production when exact meter readings or
gauging and strapping data is not available. 
Seller has provided to Purchaser all data necessary to support any
estimated allocation, for purposes of establishing the adjustment to the Cash
Purchase Price pursuant to Section 2.2
hereof that has been used to determine the Closing Payment.  Property Costs that are paid periodically
shall be prorated based on the number of days in the applicable period falling
before and the number of days in the applicable period falling at or after the
Effective Time, except that Hydrocarbon production, severance and similar Taxes
shall be prorated based on the number of units actually produced, purchased or
sold or proceeds of sale, as applicable, before, and at or after, the Effective
Time.  In each case, Purchaser and
Company shall be responsible for the portion allocated to the period at and
after the Effective Time and Anadarko shall be responsible for the portion
allocated to the period before the Effective Time.  For purposes of this Section 1.4,
the calculations and allocations contemplated hereby shall be made in the same
manner as such calculations and allocations are made by Anadarko pursuant to
the Anadarko Purchase Agreement insofar as such calculations and allocations
relate to the Assets.

Section 1.5.           Delivery and Maintenance of Records.

To the extent that Seller holds any Records, Seller,
at Seller’s sole cost and expense, shall deliver the Records (FOB Seller’s
office) to Purchaser within thirty (30) days following Closing.  To the extent that any Records are held by
Anadarko at or following the Closing, Seller shall use its reasonable best
efforts to obtain such Records from Anadarko; provided that Seller shall not be
obligated to utilize any greater level of effort to obtain such Records from
Anadarko than Seller uses to obtain any other records from Anadarko to which Seller
is entitled pursuant to the terms of the Anadarko Purchase Agreement.  Other than any original Records retained by
Seller pursuant to Section 1.2(i),
Purchaser shall be entitled to all original Records maintained by the Company
or its Affiliates.  Seller shall be
entitled to keep a copy or copies of all Records; provided,
however, that Seller shall not sell or
otherwise allow third parties to review, copy or otherwise use (for any
purpose) any Records retained by Seller for its own account.  Purchaser shall, and shall cause the Company
to, preserve the Records for a period of ten (10) years following the Closing
and will allow Seller and its representatives, consultants and advisors
reasonable access, during normal business hours and upon reasonable notice, to
the Records for any legitimate business reason of Seller, including in order
for Seller to comply with a Tax or other legally required reporting obligation
or Tax or legal dispute; provided, however, that Purchaser or the Company shall not be required
to grant access to Seller or any of its representatives, consultants or
advisors, to any Records that are subject to an attorney/client or attorney
work product privilege or that would cause Purchaser or the Company to violate
any obligation to any third party or breach any restriction legally binding on
Purchaser or the Company.  Any such
access shall be at the sole cost and expense of Seller.  Unless otherwise consented to in writing by
Seller, for a period of ten (10) years following the Closing Date, Purchaser
shall not and shall cause its Affiliates (including the Company) not to,
destroy, alter or otherwise dispose of the Records, or any portions thereof,
without first giving at least thirty (30) days prior written notice to Seller
and offering to surrender to Seller the Records or such portions thereof.

 5
 

ARTICLE 2

PURCHASE PRICE

Section 2.1.           Purchase Price.

The purchase price for the Interests (the “Purchase
Price”) shall be (a) $285,000,000, adjusted as provided in Section 2.2
(the “Cash Purchase Price”), payable in cash, and (b) 750,000 shares (the “Purchased
Shares”) of common stock, par value $0.001 per share (“Crimson Parent Common
Stock”), of Crimson Parent (the “Stock Purchase Price”).

Section 2.2.           Adjustments to Cash Purchase Price.

The Cash Purchase Price (before adjustment pursuant to
this Section 2.2)  for
the Interests shall be adjusted in the manner specified below (without
duplication), with all such amounts being determined in accordance with GAAP
and Council of Petroleum Accountants Society (COPAS) standards, as applicable,
in order to reach the Adjusted Purchase Price:

(a)           Reduced
by the aggregate amount of the following proceeds received by the Company, but
distributed to Seller, or received by Anadarko and not remitted to the Company,
in each case, between (and including) the Effective Time and the Closing Date
(with the period between the Effective Time and the Closing Date referred to as
the “Adjustment Period”):  (i) proceeds
from the sale of Hydrocarbons (net of any royalties, overriding royalties or
other burdens on or payable out of production, gathering, processing and
transportation costs and any production, severance, sales, excise or similar
Taxes not reimbursed to Seller by the purchaser of production) produced from or
attributable to the Properties during the Adjustment Period, and (ii) other
proceeds earned with respect to the Assets during the Adjustment Period,
provided that the amount of any such adjustment for the portion of the
Adjustment Period that ends on the Anadarko Closing Date shall be the same
amount by which the Anadarko Purchase Price is adjusted pursuant to Section
2.2(a) of the Anadarko Purchase Agreement in respect of the Properties and the
Assets;

(b)           Reduced
by $1,594,434 for all Retained Preference Property and Retained TR Assets;

(c)           Reduced
by an aggregate of $2,297,764 with respect to (i) all Title Defects and (ii)
all Environmental Defects pursuant to Section 4.3;

(d)           Increased
by the amount of all Property Costs and other costs attributable to the ownership
and operation of the Assets which are paid and incurred during the Adjustment
Period (including any overhead costs under Schedule 1.4
deemed charged to the Assets with respect to the Adjustment Period even though
not actually paid), except any Property Costs and other such costs already
deducted in the determination of proceeds in Section
2.2(a), provided that the amount of any such adjustment for the
portion of the Adjustment Period that ends on the Anadarko Closing Date shall
be the same amount by which the Anadarko Purchase Price is adjusted pursuant to
Section 2.3(d) of the Anadarko Purchase Agreement in respect of the
Properties and the Assets;

 6
 

(e)           Reduced
by the aggregate amounts payable to owners of working interests, royalties and
overriding royalties and other interests in the Properties held in suspense by
a Person other than the Company as of the Closing Date;

(f)            Increased
or reduced as mutually agreed upon in writing prior to Closing by Seller and
Purchaser;

(g)           Increased
by the value of the amount of merchantable Hydrocarbons stored in tanks and
pipelines attributable to the ownership and operation of the Assets that belong
to the Company as of the Effective Time (which value shall be computed at the
applicable third-party contract prices for the month of December 2006 for
such stored Hydrocarbons), provided that the amount of any such increase shall
be the same amount by which the Anadarko Purchase Price is adjusted pursuant to
Section 2.3(h) of the Anadarko Purchase Agreement in respect of the
Assets;

(h)           Reduced
by the actual net aggregate Imbalances, if any, owed to third-parties, as of
the Effective Time, multiplied by a price of $3.00 per MMBtu, provided that the
amount of any such reduction shall be the same amount by which the Anadarko
Purchase Price is adjusted pursuant to Section 2.3(1) of the Anadarko
Purchase Agreement in respect of the Assets; and

(i)            Increased
by $150,811 to cover the costs and expenses of the transition operations to be
provided by Anadarko pursuant to Section 1.11 of the Third Amendment.

Each adjustment made pursuant to Section
2.2(a) shall serve to satisfy, up to the amount of the adjustment,
the Company’s entitlement under Section 1.4 to
Hydrocarbon production from or attributable to the Properties during the
Adjustment Period, and to the value of other income, proceeds, receipts and
credits earned with respect to the Assets during the Adjustment Period, and as
such, Purchaser (and the Company) shall not have any separate rights to receive
any Hydrocarbon production or income, proceeds, receipts and credits with
respect to which an adjustment has been made. 
Similarly, the adjustment described in Section
2.2(d) shall serve to satisfy, up to the amount of the adjustment,
Purchaser’s (and the Company’s) obligation under Section 1.4 to
pay Property Costs and other costs attributable to the ownership and operation
of the Assets which are incurred during the Adjustment Period, and as such,
notwithstanding anything in this Agreement to the contrary, Purchaser (and the
Company) shall not be separately obligated to pay for any Property Costs or
other such costs with respect to which an adjustment has been made.

The Cash Purchase Price, adjusted as set forth in
clauses (a) through (i) above, shall be increased by simple interest thereon
from the Effective Time to the Closing Date, computed at the Agreed Interest
Rate.

Section 2.3.           Allocation
of Purchase Price for Tax Purposes.

 

Purchaser and Seller shall use good faith efforts to
agree, as soon as reasonably practicable after the Closing but not later than
ninety (90) days following the Closing Date, upon an allocation of the
unadjusted Purchase Price among each of the Assets (“Allocated Values”), in
compliance with the principles of Section 1060 of the Code, and the Treasury
regulations thereunder.  Such allocation
of value shall be generally treated as Class V assets for purposes of 

 7
 

Internal Revenue Service
Form 8594 to the extent possible consistent with the character of the Assets
involved.  The “Tax Allocated Value” for
any Asset equals the portion of the unadjusted Purchase Price to be allocated
to such Asset by the parties pursuant to this Section 2.3,
increased or reduced as described in this Article 2.  Any adjustments to the Purchase Price other
than the adjustments provided for in Section 2.2(b) and
Section 2.2(c) shall be applied on a
pro rata basis to the amounts agreed to by the parties pursuant to this Section 2.3 for all Assets to the maximum extent possible
consistent with the character of the adjustments.  After all such adjustments are made, any
adjustments to the Purchase Price pursuant to Section
2.2(b) and Section 2.2(c) shall
be applied to the amounts agreed to by the parties pursuant to this Section 2.3 for the particular affected Assets.  After Seller and Purchaser have agreed on the
Tax Allocated Values for the Assets, Seller will be deemed to have accepted
such Tax Allocated Values for purposes of this Agreement and the transactions
contemplated hereby, but otherwise makes no representation or warranty as to
the accuracy of such values.  Seller and
Purchaser agree (i) that the Tax Allocated Values shall be used by Seller and
Purchaser as the basis for reporting asset values and other items for purposes
of all federal, state, and local Income Tax Returns, including without
limitation Internal Revenue Service Form 8594 and (ii) that neither they nor
their Affiliates will take positions inconsistent with the Tax Allocated Values
in notices to Governmental Bodies, in audit or other proceedings with respect
to Taxes unless required by applicable Law or with the consent of the other
party.  Purchaser and Seller agree that
each shall furnish the other a copy of Form 8594 (Asset Acquisition Statement
under Section 1060) proposed to be filed with the Internal Revenue Service
by such party or any Affiliate thereof at least ten (10) days prior to such
filing.

ARTICLE 3

TITLE MATTERS

Section 3.1.           Seller’s Title.

(a)           Except
for Seller’s representations and warranties contained in Section 5.11,
Section 5.12 and Section 5.13,  Seller makes no warranty or representation, express,
implied, statutory or otherwise, with respect to the Company’s title to any of
the Assets.

(b)           Notwithstanding
anything herein provided to the contrary, if a Title Defect under this Article 3 results from any matter which could also result in
the breach of any representation or warranty of Seller set forth in Article 5, then (other than the right to assert a breach of
any representation or warranty of Seller contained in Section 5.11,
Section 5.12 or Section 5.13
following the Closing) Purchaser shall only be entitled to the
adjustment to the Purchase Price pursuant to Section
2.2(c), and, other than the right to assert a breach of any
representation or warranty contained in Section 5.11, Section 5.12 or Section 5.13
following the Closing, shall be precluded from also asserting such matter as
the basis of the breach of any representation or warranty of Seller set forth
in Article 5.

Section 3.2.           Definition of Defensible Title.

As used in this Agreement, the term “Defensible Title”
means that title of the Company with respect to the Units, Warranty Wells or
other Assets shown in Exhibit A-1
that, except for and subject to Permitted Encumbrances:

 8
 

(a)           Entitles
the Company to receive a share of the Hydrocarbons produced, saved and marketed
from any Unit, Warranty Well or other Asset shown in Exhibit A-1
throughout the duration of the productive life of such Unit, Warranty Well or
other Asset (after satisfaction of all royalties, overriding royalties, net
profits interests or other similar burdens on or measured by production of
Hydrocarbons) (a “Net Revenue Interest”), of not less than the Net Revenue
Interest shown in Exhibit A-1
for such Unit, Warranty Well or other Asset, except for decreases in connection
with those operations in which the Company (or its predecessor in interest to
such Unit, Warranty Well or other Asset during the Adjustment Period) may from
and after the Effective Time become a non-consenting co-owner, decreases
resulting from the establishment or amendment from and after the Effective Time
of pools or units, and decreases required to allow other working interest
owners to make up past underproduction or pipelines to make up past under
deliveries, and except as stated in such Exhibit A-1;

(b)           Obligates
the Company to bear a percentage of the costs and expenses for the maintenance
and development of, and operations relating to, any Unit, Warranty Well or
other Asset shown in Exhibit A-1
not greater than the “working interest” shown in Exhibit A-1
for such Unit, Warranty Well or other Asset without increase throughout the
productive life of such Unit, Warranty Well or other Asset, except as stated in
Exhibit A-1 and except for
increases resulting from contribution requirements with respect to
non-consenting co-owners under applicable operating agreements and increases
that are accompanied by at least a proportionate increase in the Net Revenue
Interest of the Company; and

(c)           Is
free and clear of liens, encumbrances, obligations, security interests,
irregularities, pledges, or other defects.

(d)           As
used in this Agreement, the term “Title Defect” means any lien, charge,
encumbrance, obligation (including contract obligation), defect, or other
matter (including without limitation a discrepancy in Net Revenue Interest or
working interest) that causes the Company (or its predecessor in interest to
such Unit, Warranty Well or other Asset during the Adjustment Period) not to
have Defensible Title in and to the Units, Warranty Wells or other Assets shown
on Exhibit A-1 as of the Effective
Time and the Closing.  As used in this
Agreement, the term “Title Benefit” shall mean any right, circumstance or
condition that operates to increase the Net Revenue Interest of the Company (or
its predecessor in interest to such Unit, Warranty Well or other Asset during
the Adjustment Period) in any Unit, Warranty Well or other Asset shown on Exhibit A-1, without causing a greater than
proportionate increase in the working interest of the Company (or its predecessor
in interest to such Unit, Warranty Well or other Asset during the Adjustment
Period) above that shown in Exhibit A-1
as of the Effective Time. 
Notwithstanding the foregoing, the following shall not be considered
Title Defects:

(i)                                     defects
based solely on (1) lack of information in the files of Seller or the Company
(or its predecessor in interest to such Unit, Warranty Well or other Asset
during the Adjustment Period), or (2) references to a document(s) if such
document(s) is not in the files of Seller or the Company (or its predecessor in
interest to such Unit, Warranty Well or other Asset during the Adjustment
Period);

 9
 

(ii)                                  defects
arising out of lack of corporate or other entity authorization unless Purchaser
provides affirmative evidence that the action was not authorized;

(iii)                               defects
based on failure to record Leases issued by any state or federal Governmental
Body, or any assignments of such Leases, in the real property, conveyance or
other records of the county or parish in which such Property is located;

(iv)                              defects
based on a gap in the chain of title of the Company (or its predecessor in
interest to such Unit, Warranty Well or other Asset during the Adjustment
Period) in the county or parish records as to Leases, unless such gap is
affirmatively shown to exist in such records by an abstract of title, title
opinion or landman’s title chain which documents shall be included in a Title
Defect Notice; and

(v)                                 defects
that have been cured by applicable Laws of limitation or prescription.

Section 3.3.           Definition of Permitted Encumbrances.

As used herein, the term “Permitted
Encumbrances” means any or all of the following:

(a)           Royalties
and any overriding royalties, reversionary interests and other burdens on
production, to the extent that any such burden does not reduce the Net Revenue
Interest of the Company (or its predecessor in interest to such Unit, Warranty
Well or other Asset during the Adjustment Period) below that shown in Exhibit A-1 or increase the working interest of the
Company (or its predecessor in interest to such Unit, Warranty Well or other
Asset during the Adjustment Period) above that shown in Exhibit A-1
without a proportionate increase in the Net Revenue Interest;

(b)           All
Leases, unit agreements, pooling agreements, operating agreements, Hydrocarbon
production sales contracts, division orders and other contracts, agreements and
instruments applicable to the Assets, to the extent that they do not,
individually or in the aggregate, reduce the Net Revenue Interest of the
Company (or its predecessor in interest to such Unit, Warranty Well or other
Asset during the Adjustment Period) below that shown in Exhibit A-1
or increase the working interest of the Company (or its predecessor in interest
to such Unit, Warranty Well or other Asset during the Adjustment Period) above
that shown in Exhibit A-1 without a
proportionate increase in the Net Revenue Interest;

(c)           Preference
Rights applicable to this or any future transaction;

(d)           Transfer
Requirements applicable to this or any future transaction;

(e)           Liens
for current Taxes or assessments not yet delinquent;

 10
 

(f)            Materialman’s,
mechanic’s, repairman’s, employee’s, contractor’s, operator’s and other similar
liens or charges arising in the ordinary course of business for amounts not yet
delinquent (including any amounts being withheld as provided by Law);

(g)           All
rights to consent by, required notices to, filings with, or other actions by
Governmental Bodies in connection with the conveyance of the Assets or
interests therein by means of the sale of the Interests pursuant to this or to
any future transaction if they are not required or customarily obtained prior
to the sale or conveyance;

(h)           Rights
of reassignment arising upon final intention to abandon or release the Assets,
or any of them;

(i)            Easements,
rights-of-way, servitudes, permits, surface leases and other rights in respect
of surface operations, to the extent that they do not (i) reduce the Net
Revenue Interest of the Company (or its predecessor in interest to such Unit,
Warranty Well or other Asset during the Adjustment Period) below that shown in Exhibit A-1, (ii) increase the working interest of the
Company (or its predecessor in interest to such Unit, Warranty Well or other
Asset during the Adjustment Period) above that shown in Exhibit A-1
without a proportionate increase in Net Revenue Interest, or (iii) detract in
any material respect from the value of, or interfere in any material respect
with the use, ownership or operation of, the Assets subject thereto or affected
thereby (as currently used, owned and operated) and which would be acceptable
by a reasonably prudent purchaser engaged in the business of owning and
operating oil and gas properties;

(j)            Calls
on Hydrocarbon production under
existing Contracts;

(k)           All
rights reserved to or vested in any Governmental Body to control or regulate
any of the Assets in any manner,
and all obligations and duties under all applicable Laws or under any
franchise, grant, license or permit issued by any such Governmental Body;

(l)            Any
encumbrance on or affecting the Assets which is discharged by the Company (or
its predecessor in interest to such Unit, Warranty Well or other Asset during
the Adjustment Period) at or prior to Closing;

(m)          Any
matters shown on Exhibit A-1;

(n)           Any
other liens, charges, encumbrances, defects or irregularities which do not,
individually or in the aggregate, detract in any material respect from the
value of, or interfere in any material respect with the use or ownership of,
the Assets subject thereto or affected thereby (as currently used or owned),
which would be accepted by a reasonably prudent purchaser engaged in the
business of owning and operating oil and gas properties, and which do not
reduce the Net Revenue Interest of the Company (or its predecessor in interest
to such Unit, Warranty Well or other Asset during the Adjustment Period) below
that shown in Exhibit A-1, or increase the
working interest of the Company (or its predecessor in interest to such Unit,
Warranty Well or other Asset during the Adjustment Period) above that shown in Exhibit A-1 without a proportionate increase in Net
Revenue Interest;

(o)           Imbalances
associated with the Assets; and

 11
 

(p)           Liens
granted under applicable joint operating agreements.

Section 3.4.           Notice of Title Defect Adjustments.

(a)           Attached
as Exhibit G (the “Title Claim Date”) is a
notice to Purchaser setting forth all Title Defects relating to the Assets that
were identified by Seller pursuant to Section 3.4(a) of the Anadarko Purchase
Agreement (the “Title Defect Notice”).

Section 3.5.           Casualty or Condemnation Loss.

From and after the Effective Time, Purchaser shall
assume all risk of loss with respect to and any change in the condition of the
Assets and for production of Hydrocarbons through normal depletion (including,
but not limited to, the watering out of any Well, collapsed casing or sand
infiltration of any Well) and the depreciation of personal property due to
ordinary wear and tear with respect to the Assets.

Section 3.6.           Government Approvals Respecting Assets.

(a)           Federal
and State Approvals.  To the extent
that the Company has not previously done so pursuant to Section 3.7 of the
Anadarko Purchase Agreement, Purchaser shall, within thirty (30) days after the
Anadarko Closing and at Purchaser’s own expense, file (or cause the Company to
file) for approval with the applicable Governmental Bodies all assignment
documents and other state and federal transfer documents required to effectuate
the transfer of the Assets from Anadarko to the Company.  Purchaser further agrees, promptly after
Closing, to take (or cause the Company to take) all other actions reasonably
required by federal or state agencies having jurisdiction to obtain all
requisite regulatory approvals with respect to this transaction and the sale of
the Assets to the Company pursuant to the Anadarko Purchase Agreement, and to
use its commercially reasonable efforts to obtain the approval by such federal
or state agencies, as applicable, of Anadarko’s assignment documents pursuant
to the Anadarko Purchase Agreement requiring federal or state approval in order
for the Company to be recognized by the federal or state agencies as the owner
of the Assets.  Purchaser shall provide
Seller with the resignation and designation of operator instruments, and
approved copies of the assignment documents and other state and federal
transfer documents, as soon as they are available.

(b)           Title
Pending Governmental Approvals. 
Until all of the governmental approvals contemplated by Section 3.6(a) have been obtained, the parties acknowledge
that the following shall occur pursuant to the Anadarko Purchase Agreement with
respect to the affected portion of the Assets:

(i)                                     Anadarko
shall continue to hold record title to the affected Leases and other affected
portion of the Assets as nominee for Seller;

(ii)                                  The
Company shall be responsible for all Assumed Anadarko Obligations with respect
to the affected Leases and other affected portion of the Assets as if the
Company was the record owner of such Leases and other portion of the Assets as
of the Effective Time; and

 12
 

(iii)                               Anadarko
shall act as Seller’s nominee but shall be authorized to act only upon and in
accordance with Seller’s instructions, and Anadarko shall have no authority,
responsibility or discretion to perform any tasks or functions with respect to
the affected Leases and other affected portion of the Assets other than those
which are purely administrative or ministerial in nature, unless otherwise
specifically requested and authorized by Seller in writing.  Seller, at Purchaser’s and the Company’s
expense, shall take reasonable direction from Purchaser in requesting any such
tasks or functions.

(c)           Denial
of Required Governmental Approvals. 
Purchaser acknowledges that pursuant to the Anadarko Purchase Agreement,
if the federal or state agency fails to do so within twenty-four (24) months
after the Anadarko Closing, Anadarko may continue to hold record title to the
affected Leases and other affected Assets as Seller’s nominee or, at Anadarko’s
option, it may terminate the Anadarko Purchase Agreement and all its
obligations thereunder as to the affected Leases and other affected portion of
the Assets by giving sixty (60) days written notice to Seller, which upon such
termination:  (i) the Anadarko Purchase
Agreement shall be null and void and terminated as to the affected Leases and
other affected portion of the Assets, (ii) Purchaser and the Company shall
promptly reassign and return to Anadarko the assignment documents and any and
all other documents, materials and data previously delivered to the Company
with respect to the affected Leases and other affected portion of the Assets,
and (iii) Anadarko shall pay to the Company (or Seller for the benefit of the
Company) the Allocated Value of the affected Property (without interest), less
the proceeds of Hydrocarbon production received by the Company (which the
Company may retain as its sole property) net of all expenses, overhead,
royalties, and costs of operations (including plugging and abandonment expenses
but excluding mortgage interest and any burdens, liens, or encumbrances created
by the Company which must be released prior to this payment) attributable to
the affected Leases or other affected portion of the Assets from the Effective
Time forward, plus interest payable on such net amount at the Agreed Interest
Rate from (but not including) the Closing Date to (and including) the date on
which such amount is paid to the Company (or Seller for the benefit of the
Company).  Purchaser further acknowledges
(on behalf of itself and its Affiliates) that in no event, however, shall
Anadarko or Seller or any of their respective Affiliates ever be required to
reimburse Purchaser or the Company or any of their respective Affiliates for
any expenditures associated with workovers, recompletions, sidetracks, or the
drilling, completion or plugging and abandonment of wells drilled or work
performed by Anadarko or any of its Affiliates.

ARTICLE 4

ENVIRONMENTAL MATTERS

Section 4.1.           Environmental Access.

Purchaser acknowledges that Seller has afforded, and
has caused the Company to afford, to Purchaser and its officers, employees,
agents and authorized representatives, at the sole cost and expense of
Purchaser, reasonable access to all due diligence materials and information,
environmental reports, work papers and other information relating to the Assets
either developed by Seller or obtained from Anadarko (the “Due Diligence
Materials”), but only to the extent that
Seller could do so without violating any obligations to any third party.  Purchaser further 

 13
 

acknowledges that Seller
has made available, and caused the Company to make available, to Purchaser,
upon reasonable notice during normal business hours, Seller’s personnel and
consultants knowledgeable with respect to the Assets and such Due Diligence
Materials in order that Purchaser could make such diligent investigation as
Purchaser considered desirable. 
Purchaser acknowledges (and accepted the risk) that it had no right to
conduct an environmental assessment of all or any portion of the Properties (an
“Assessment”) or any sampling, boring, drilling or other invasive investigative
activity with respect to the Properties (an “Invasive Activity”), but that
Seller provided Purchaser with a copy of the final draft of all environmental
reports prepared by, or on behalf of, Seller with respect to any Assessment or
Invasive Activity conducted on the Properties pursuant to the Anadarko Purchase
Agreement.

Section 4.2.           NORM, Wastes and Other Substances.

Purchaser acknowledges that the Assets have been used
for the exploration, development, and production of Hydrocarbons and that there
may be petroleum, produced water, wastes, or other substances or materials
located in, on or under the Properties or associated with the Assets.  Equipment and sites included in the Assets
may contain Hazardous Materials, including NORM.  NORM may affix or attach itself to the inside
of wells, materials, and equipment as scale, or in other forms.  The wells, materials, and equipment located
on the Properties or included in the Assets may contain Hazardous Materials,
including NORM.  Hazardous Materials,
including NORM, may have come in contact with various environmental media,
including without limitation, water, soils or sediment.  Special procedures may be required for the assessment,
remediation, removal, transportation, or disposal of environmental media and
Hazardous Materials, including NORM, from the Assets.

Section 4.3.           Environmental Defects.

Attached as Exhibit H
is a notice to Purchaser of all violations of an Environmental Law (other than
with respect to NORM) relating to the Assets (in each case, an “Environmental
Defect”) identified by Seller pursuant to Section 4.3 of the Anadarko
Purchase Agreement (an “Environmental Defect Notice”).  The Environmental Defect Notice includes (i)
a description of the matter constituting the alleged Environmental Defect, (ii)
the Units/Warranty Wells and associated Assets affected by the Environmental
Defect, (iii) the Lowest Cost Response to eliminate the Environmental Defect in
question, as determined by Anadarko and Seller in accordance with the Anadarko
Purchase Agreement (the “Environmental Defect Amount”), and (iv) a copy of the
environmental defect notice (redacted to show only the information that relates
to the Assets) delivered to Anadarko by Seller pursuant to the Anadarko
Purchase Agreement and a copy of the supporting documents provided by Seller to
Anadarko pursuant to Section 4.3 of the Anadarko Purchase Agreement to
verify the existence of the alleged Environmental Defect(s).  Each of Purchaser, the Company and Crimson
Parent has no right to assert any Environmental Defect other than such
Environmental Defects contained in the Environmental Defect Notice.  The parties adjusted the Cash Purchase Price
to reflect the Environmental Defect Amounts for all Environmental Defects by
the amount set forth in Section 2.2(e)
which is Purchaser’s exclusive remedy for Environmental Defects.

 14
 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF SELLER AND THE COMPANY

Section 5.1.           Generally.

(a)           For
purposes of this Agreement, (i) any representations or warranties given
pursuant to Section 5.5, to the extent that
such representation or warranty relates to the Assets, shall be deemed made
with respect to events, acts or omissions occurring or conditions coming into
existence on or after the Anadarko Closing Date, (ii) Seller shall not be
deemed to be in breach of this Agreement to the extent such representations or
warranties contained in Section 5.5 are
inaccurate due to events, acts or omissions occurring or existing or conditions
occurring or existing prior to the Anadarko Closing Date that do not constitute
a material breach by Seller of any covenants in this Agreement, and (iii) the
Schedules to this Agreement are based on information provided to Seller in
connection with the Anadarko Purchase Agreement.

(b)           Any
representation or warranty qualified “to the knowledge of Seller” or “to Seller’s
knowledge” or with any similar knowledge qualification is limited to matters
within the actual knowledge of the officers of Seller or its Affiliates or
those employees of Seller or any of its Affiliates who have responsibility for
the Assets and who have the following titles: 
all officers of EXCO with the title of Chief Executive Officer, Chief
Financial Officer, Chief Operating Officer or Vice President.  “Actual knowledge” for purposes of this
Agreement means information actually personally known by such Persons.

(c)           Inclusion
of a matter on a Schedule in relation to a representation or warranty which addresses
matters having a Material Adverse Effect shall not be deemed an indication that
such matter does, or may, have a Material Adverse Effect.  Likewise, the inclusion of a matter on a
Schedule in relation to a representation or warranty shall not be deemed an
indication that such matter necessarily would, or may, breach such
representation or warranty absent its inclusion on such Schedule.  Matters may be disclosed on a Schedule to
this Agreement for purposes of information only.

(d)           Subject
to the foregoing provisions of this Section 5.1,
the disclaimers and waivers contained in Section 9.10, Section 9.11, and Section 9.12
and the other terms and conditions of this Agreement, Seller represents and
warrants to Purchaser and Crimson Parent the matters set out in the remainder
of this Article 5.

Section 5.2.           Existence; Qualification and Capitalization.

(a)           Seller
is a corporation duly organized, validly existing and in good standing under
the laws of the State of Texas and is duly qualified to do business as a
foreign corporation in every jurisdiction in which it is required to qualify in
order to conduct its business, except where the failure to so qualify would not
have a Material Adverse Effect.  The
Company is a limited liability company duly formed, validly existing and in
good standing under the laws of the State of Delaware and is duly qualified to
do business as a foreign limited liability company where the Assets are
located, except where the failure to so qualify would not have a Material
Adverse Effect.

 15
 

(b)           Subject
to the terms of the limited liability company agreement and the other
organizational documents of the Company, a true and correct copy of which are
attached hereto as Schedule 5.2
(collectively, the “Limited Liability Company Agreement”), Seller is the
beneficial and record owner and has good and marketable title to the Interests,
free and clear of all liens, charges, encumbrances, obligation, security
interests, pledges or other limitations or restrictions, preemptive rights,
preferential arrangements or restrictions of any kind, including any
restriction of the use, voting, transfer, right to income or any other
incidents of ownership.  Seller has the
full legal right, power and authority to sell such Interests to Purchaser in
accordance with the terms of this Agreement. 
Upon payment of the Purchase Price in accordance with the terms of this
Agreement, Purchaser will acquire good and marketable title to the Interests
free and clear of all liens, charges, encumbrances, obligation, security
interests, pledges or other limitations or restrictions.  No membership interests of the Company are
reserved for issuance.  Except for the
Interests, there are not outstanding or in existence (i) membership interests
or other voting securities of the Company, (ii) securities of the Company
convertible into or exchangeable for membership interests or other voting
securities of the Company, (iii) options, warrants or other rights to acquire
from the Company, or obligations of the Company to issue or sell, any
membership interests or other voting securities or any securities of the
Company convertible into or exchangeable for such membership interests or
voting securities, or (iv) equity equivalents, interest in the ownership or
earnings, or other similar rights of or with respect to the Company.

Section 5.3.           Power.

Seller and the Company have the corporate power to
enter into and perform this Agreement and consummate the transactions
contemplated by this Agreement.

Section 5.4.           Authorization and Enforceability.

The execution, delivery and performance of this
Agreement, and the performance of the transactions contemplated hereby, have
been duly and validly authorized by all necessary corporate or partnership
action on the part of Seller and the Company. 
This Agreement has been duly executed and delivered by Seller and the
Company (and all documents required hereunder to be executed and delivered by
Seller and the Company at Closing will be duly executed and delivered by Seller
and the Company, respectively) and this Agreement constitutes, and at the
Closing such documents will constitute, the valid and binding obligations of
Seller and the Company, enforceable against Seller and the Company,
respectively, in accordance with their terms except as such enforceability may
be limited by applicable bankruptcy or other similar laws affecting the rights
and remedies of creditors generally as well as to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at Law).

Section 5.5.           No Conflicts.

Subject to compliance with the Preference Rights and
Transfer Requirements set forth in Schedule 5.5,
the execution, delivery and performance of this Agreement by Seller and the
Company, and the transactions contemplated by this Agreement will not (i)
violate any provision of the certificate of incorporation, bylaws, limited
liability company agreement or similar 

 16
 

governing documents of
Seller or the Company, (ii) result in default (with due notice or lapse of time
or both) or the creation of any lien or encumbrance or give rise to any right
of termination, cancellation or acceleration under any of the terms, conditions
or provisions of any note, bond, mortgage, indenture, license or agreement to
which Seller or the Company is a party or which affect the Assets, (iii)
violate any judgment, order, ruling, or decree applicable to Seller or the
Company as a party in interest, (iv) violate any Laws applicable to Seller or
the Company or any of the Assets, except for (a) rights to consent by, required
notices to, filings with, approval or authorizations of, or other actions by
any Governmental Body where the same are not required prior to the sale of the
Interests or they are customarily obtained subsequent to the sale thereof and (b)
any matters described in clauses (ii), (iii) or (iv) above which would not have
a Material Adverse Effect.

Section 5.6.           Liability for Brokers’ Fees.

Purchaser shall not directly or indirectly have any
responsibility, liability or expense, as a result of undertakings or agreements
of Seller or its Affiliates (including the Company), for brokerage fees, finder’s
fees, agent’s commissions or other similar forms of compensation in connection
with this Agreement or any agreement or transaction contemplated hereby.

Section 5.7.           No Business Conduct.

The Company was organized on March 9, 2007.  Since its organization to the Closing Date,
the Company has engaged in no activity other than in connection with (a) its
organization, (b) the preparation, negotiation and execution of this Agreement
and the transactions contemplated hereby, (c) obtaining the right to receive
the Assets by transfer from Anadarko pursuant to the Anadarko Purchase
Agreement, (d) its compliance with the Seller Indenture and the Seller Credit Agreement
and (e) the completion of the transactions contemplated by the Anadarko
Purchase Agreement and the ancillary documents thereto and the ownership and
operation of the Assets.  As of the
Closing, there were no liabilities or obligations contingent or otherwise, and
no assets of the Company, other than liabilities or obligations arising or
existing under or resulting from, and the Assets acquired pursuant to, (i) this
Agreement, (ii) the ownership and operation of the Assets, (iii) the Anadarko
Purchase Agreement, (iv) the Conveyance (as defined in the Anadarko Purchase
Agreement) to which the Company is a party, (v) the Transition Services
Agreement, (vi) the Seller Indenture, (vii) the Seller Credit Agreement and
(viii) the Limited Liability Company Agreement. 
As of the Closing, the Company will be released from its liabilities and
obligations under the Seller Indenture and the Seller Credit Agreement.  Without limiting the generality of the
foregoing, the Company does not and has not ever had any employees or any
benefit plan, agreement or arrangement or any “employee benefit plan” within
the meaning of any applicable Laws.

Section 5.8.           Anadarko Purchase Agreement.

(a)           To
Seller’s knowledge, except as disclosed in writing to Purchaser prior to the Closing,
(i) all of the  Anadarko Warranties were
true and accurate in all material respects as though made on and as of the
Anadarko Closing Date, except to the extent that any such Anadarko Warranty was
made as of a specified date, in which case such Anadarko Warranty was true and
correct in all material respects as of such specified date, and (ii) Anadarko
performed 

 17
 

and observed in all material respects its covenants and agreements
contained in the Anadarko Purchase Agreement to be performed or observed by
Anadarko under the Anadarko Purchase Agreement prior to or on the Anadarko
Closing Date (in the case of the foregoing clauses (i) and (ii), insofar as,
and solely to the extent that, such Warranties, covenants or agreements relate
to the Assets or the Assumed Anadarko Obligations), and neither Seller nor
Company has executed any waivers in respect of any such untruth, inaccuracy,
breach or nonperformance.

(b)           There
was (i) no occurrence or failure to occur of any event that caused any of
Seller’s representations and warranties contained in the Anadarko Purchase
Agreement (insofar as, and solely to the extent that, such representations and
warranties relate to the Assets or the Assumed Anadarko Obligations) to be
untrue or inaccurate in any material respect as though made on and as of the
Anadarko Closing Date, except to the extent that any such representations and
warranties was made as of a specified date, in which case such representation
or warranty was true and correct in all material respects as of such specified
date, and (ii) no breach or nonperformance by Seller in any material respect of
any covenant or agreement contained in the Anadarko Purchase Agreement to be
performed or observed by Seller under the Anadarko Purchase Agreement prior to
or on the Anadarko Closing Date (in the case of the foregoing clauses (i) and
(ii), insofar as, and solely to the extent that, such covenant or agreement
relates to the Assets or the Assumed Anadarko Obligations), in the case of the
foregoing clauses (i) and (ii), that would have a Material Adverse Effect.

(c)           Seller
has previously provided Purchaser with copies of all Title Defect Notices and
Environmental Defect Notices (each as defined in the Anadarko Purchase
Agreement) provided by Seller to Anadarko pursuant to the terms of the Anadarko
Purchase Agreement.

Section 5.9.           Litigation.

As of the date hereof, there are no Proceedings
pending, or to the actual knowledge of Seller, threatened in writing before any
Governmental Body against Seller or any Affiliate of Seller which are
reasonably likely to impair materially Seller’s ability to perform its
obligations under this Agreement.  Except
as set forth on Schedule 9.3, there are no
Proceedings pending, or to the actual knowledge of Seller, threatened in
writing, which relate to the Assets.

Section 5.10.        Disregarded Entity.

For U.S. federal
income tax purposes, the Company is and has been disregarded as an entity
separate from its owner within the meaning of Section 301.7701-2 of the
United States Treasury Regulations, and neither Seller nor any Affiliate
of Seller has made an election under the entity classification regulations
promulgated pursuant to Section 7701 of the Code to treat the Company as
an entity taxable as a corporation.

Section 5.11.        Contract Review

Except as to any Contracts, copies of which have been
provided or made available to Purchaser (to which this Section 5.11
does not apply), Seller has reviewed the Contracts that were provided to Seller
by Anadarko and deemed material by Seller and concluded that such Contracts
contained customary provisions that would be reasonably acceptable to a
reasonably 

 18
 

prudent purchaser,
similarly situated to Seller and engaged in the business of owning and
operating oil and gas properties, if it were to purchase and operate the
Assets.

Section 5.12.        Preference Rights and Transfer Requirements.

Except for the items listed on Schedule 5.5,
all of the Preference Rights affecting the Assets have been waived and all
Transfer Requirements affecting the Assets have been met.

Section 5.13.        No Conveyances, Liens
or Transfers.

Except for (a) the Company becoming a subsidiary
guarantor pursuant to the terms of the Seller Indenture and the Seller Credit
Agreement after the Anadarko Closing and (b) any Lien on the Company or the Assets
pursuant to the terms of the Seller Credit Agreement, each of which guaranties
and Liens will be released as of the Closing, the Company has not conveyed,
encumbered or otherwise transferred any interest in the Assets.

Section 5.14.        Investment Representations.

(a)           Seller
is acquiring the Purchased Shares for its own account, and not with a view
toward or for sale associated with any distribution thereof, nor with any
present intention of making a distribution thereof within the meaning of the
Securities Act and applicable state securities laws, without prejudice,
however, to Seller’s right at all times to sell or otherwise dispose of all or
any part of the Purchased Shares under a registration statement under the
Securities Act and applicable state securities laws, whether pursuant to the
Registration Rights Agreement or otherwise, or under an exemption from such
registration available thereunder (including, if available, Rule 144
promulgated under the Securities Act).

(b)           Seller
is an “accredited investor” within the meaning of Rule 501 of Regulation D
under the Securities Act.

(c)           Seller
understands that the Purchased Shares are being offered and sold to it in
reliance upon specific exemptions from the registration requirements of the
Securities Act and state securities laws and that Crimson Parent is relying
upon the truth and accuracy of, and Seller’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of
Seller set forth herein in order to determine the availability of such
exemptions and the eligibility of Seller to acquire the Purchase Shares.  Seller understands that the Purchased Shares
are “restricted securities” under the federal securities laws inasmuch as they
are being acquired from Crimson Parent in a transaction not involving a public
offering and that under such laws and applicable regulations such securities
may not be transferred without registration under the Securities Act or
pursuant to an exemption therefrom.

Section 5.15.        Casualty or Condemnation
Losses.

Seller did not receive or become entitled to any
remedy pursuant to Section 3.5(b) or (c) of the Anadarko Purchase Agreement at
the Anadarko Closing for any loss of any portion of the Assets due to
destruction by fire or other casualty or taking by condemnation or right of
eminent domain.

 19

ARTICLE 6

REPRESENTATIONS AND WARRANTIES

OF PURCHASER AND CRIMSON PARENT

Purchaser and Crimson Parent jointly and severally
represent and warrant to Seller the following:

Section
6.1.           Existence and Qualification.

Each of Purchaser and Crimson Parent is a corporation
duly organized, validly existing and in good standing under the laws of the
state of its incorporation; and each of Purchaser and Crimson Parent is duly
qualified to do business as a foreign corporation in every jurisdiction in
which it is required to qualify in order to conduct its business, except where
the failure to so qualify would not have a material adverse effect on Purchaser
or Crimson Parent; and Purchaser is duly qualified to do business as a foreign
corporation in the respective jurisdictions where the Assets are located.

Section 6.2.           Power.

Each of Purchaser and Crimson Parent has the corporate
power to enter into and perform this Agreement and consummate the transactions
contemplated by this Agreement.

Section 6.3.           Authorization and Enforceability.

The execution, delivery and performance of this
Agreement, and the performance of the transaction contemplated hereby, have
been duly and validly authorized by all necessary corporate action on the part
of Purchaser and Crimson Parent.  This
Agreement has been duly executed and delivered by Purchaser and Crimson Parent
(and all documents required hereunder to be executed and delivered by Purchaser
or Crimson Parent at Closing have been duly executed and delivered by Purchaser
and Crimson Parent) and this Agreement and such documents constitute the valid
and binding obligations of Purchaser and Crimson Parent, enforceable against
Purchaser and Crimson Parent in accordance with their terms except as such
enforceability may be limited by applicable bankruptcy or other similar laws
affecting the rights and remedies of creditors generally as well as to general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

Section 6.4.           No Conflicts.

Subject to compliance with the HSR Act and Regulation
D of the Securities Act and applicable state securities laws, the execution,
delivery and performance of this Agreement by Purchaser and Crimson Parent, and
the transactions contemplated by this Agreement will not (i) violate any
provision of the organizational documents of Purchaser or Crimson Parent, (ii)
result in a default (with due notice or lapse of time or both) or the creation
of any lien or encumbrance or give rise to any right of termination,
cancellation or acceleration under any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, license or agreement to which Purchaser
or Crimson Parent is a party, (iii) violate any judgment, order, ruling, or
regulation applicable to Purchaser or Crimson Parent as a party in interest, or
(iv) violate any Law applicable to Purchaser or Crimson Parent or any of their
respective assets, or (v) require any 

 20
 

filing with, notification
of or consent, approval or authorization of any Governmental Body or authority,
except any matters described in clauses (ii), (iii), (iv) or (v) above which
would not have a material adverse effect on Purchaser or Crimson Parent or the
transactions contemplated hereby.

Section 6.5.           Liability for Brokers’ Fees.

Seller shall not directly or indirectly have any
responsibility, liability or expense, as a result of undertakings or agreements
of Crimson Parent, Purchaser or their respective Affiliates, for brokerage
fees, finder’s fees, agent’s commissions or other similar forms of compensation
in connection with this Agreement or any agreement or transaction contemplated
hereby.

Section 6.6.           Litigation.

There are no Proceedings pending, or to the actual
knowledge of Purchaser or Crimson Parent, threatened in writing before any
Governmental Body against Purchaser, Crimson Parent or any Affiliate of
Purchaser or Crimson Parent which are reasonably likely to impair materially
Purchaser’s or Crimson Parent’s ability to perform its obligations under this
Agreement.

Section 6.7.           Financing.

Purchaser has sufficient sources of immediately
available funds (in United States dollars) to enable it to pay the Closing
Payment to Seller at the Closing and to otherwise satisfy its obligations under
this Agreement.

Section 6.8.           Limitation.

Except for the representations and warranties
expressly made by Seller in Article 5 of
this Agreement or confirmed in any certificate furnished or to be furnished to
Purchaser or Crimson Parent pursuant to this Agreement, Purchaser and Crimson
Parent represent and acknowledge that (i) there are no representations or
warranties, express, statutory or implied, as to the Assets or prospects
thereof, and (ii) Purchaser and Crimson Parent have not relied upon any oral or
written information provided by Seller. 
Without limiting the generality of the foregoing, Purchaser and Crimson
Parent represent and acknowledge that Seller has not made and will make no
representation or warranty regarding any matter or circumstance relating to
Environmental Laws, Environmental Liabilities, the release of materials into
the environment or protection of human health, safety, natural resources or the
environment or any other environmental condition of the Assets.  Purchaser and Crimson Parent further
represent and acknowledge that they are knowledgeable of the oil and gas
business and of the usual and customary practices of producers such as Seller
and that they have had access to the Company, the Assets (to the extent within
the power and control of Seller to provide such access), the officers and
employees of Seller and the Company, and the books, records and files made
available by Seller relating to the Company and the Assets (to the extent
within the power and control of Seller to provides access to such books, records
and files), and in making the decision to enter into this Agreement and
consummate the transactions contemplated hereby, Purchaser and Crimson Parent
have relied solely on the basis of their own independent due diligence
investigation of the Company and the Assets and Seller’s representations and
warranties contained in this Agreement.

 21
 

Section 6.9.           SEC Disclosure.

Purchaser is acquiring the Interests for its own
account for use in its trade or business, and not with a view toward or for
sale associated with any distribution thereof, nor with any present intention
of making a distribution thereof within the meaning of the Securities Act and
applicable state securities laws.

Section 6.10.        Bankruptcy.

There are no bankruptcy, reorganization or
receivership proceedings pending against, or, to the knowledge of Purchaser or
Crimson Parent, being contemplated by, or threatened against Purchaser or
Crimson Parent.

Section 6.11.        Capitalization
of Crimson Parent.

(a)           The
authorized capital stock of Crimson Parent consists of (i) 200,000,000 shares
of Crimson Parent Common Stock, (ii) 10,000,000 shares of preferred stock, par
value $0.01 per share, of which (A) 12,000 shares are designated as Series D
Preferred Stock, par value $0.01 per share, (B) 9,000 shares are designated as
Series E Cumulative Convertible Preferred Stock, par value $0.01 per share, (C)
81,000 shares are designated as Series G Convertible Preferred Stock, par value
$0.01 per share, and (D) 6,500 shares are designated as Series H Convertible
Preferred Stock, par value $0.01 per share.

(b)           Since
March 19, 2007 through the date hereof, except as disclosed in the Crimson
Parent SEC Documents, Crimson Parent has not issued any additional shares of
its capital stock, or any security convertible into or exchangeable or
exercisable for shares of such capital stock, other than upon the exercise of
stock options, and Crimson Parent has not acquired any additional shares of
Parent Common Stock in treasury.

(c)           All
of the issued and outstanding shares of Crimson Parent Common Stock and capital
stock of Purchaser have been validly issued, and are fully paid and
nonassessable, and are not subject to preemptive rights or other rights to
subscribe for or purchase securities. Each Purchased Share to be issued as the Stock
Purchase Price has been duly authorized and, when so issued, will be fully paid
and nonassessable, and will not be subject to preemptive rights or other rights
to subscribe for or purchase securities.

(d)           Except
as set forth in the Crimson Parent SEC Documents, as of the date hereof, (i) no
shares of capital stock or other equity securities of Crimson Parent are
authorized, issued or outstanding, or reserved for issuance and there are no
options, warrants or other rights (including registration rights), agreements,
arrangements or commitments of any character to which Crimson Parent or any of
its subsidiaries is a party relating to the issued or unissued capital stock or
other equity interests of Crimson Parent, requiring Crimson Parent to grant,
issue or sell any shares of the capital stock or other equity interests of
Crimson Parent or any of its subsidiaries by sale, lease, license or otherwise
and (ii) Crimson Parent does not have any obligation, contingent or otherwise,
to repurchase, redeem or otherwise acquire any shares of the capital stock or
other equity interests of Crimson Parent or any of its subsidiaries.

 22
 

(e)           No
bonds, debentures, notes or other indebtedness of Crimson Parent having the
right to vote (whether currently or upon the occurrence of an event) on any
matters on which the stockholders of Crimson Parent or any of its subsidiaries
may vote are issued or outstanding or subject to issuance.

Section 6.12.        Certificate
of Incorporation and By-Laws.

True, correct and complete copies of the Certificates
of Incorporation and By-laws, each as amended to date, of Crimson Parent and
Purchaser have been provided to Seller. The Certificates of Incorporation and
By-laws of Crimson Parent and Purchaser are in full force and effect. Neither
Crimson Parent nor Purchaser is in violation of any provision of its
Certificate of Incorporation or By-laws.

Section 6.13.        SEC
Documents and Other Reports of Crimson Parent.

Crimson Parent has filed all documents required to be
filed with the Securities and Exchange Commission (the “SEC”) prior to the date
hereof by it and its subsidiaries under the Securities Act or the Exchange Act
(the “Crimson Parent SEC Documents”). As of their respective dates, or if
amended as of the date of the last such amendment, the Crimson Parent SEC
Documents complied in all material respects with the requirements of the
Securities Act or the Exchange Act, as the case may be, and none of the Crimson
Parent SEC Documents contained any untrue statement of a material fact or
omitted to state any material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading. The consolidated financial statements (including
related notes) of Crimson Parent included in the Crimson Parent SEC Documents
fairly present in all material respects the consolidated financial position of
Crimson Parent and its consolidated subsidiaries, as at the respective dates
thereof and the consolidated results of their operations and their consolidated
cash flows for the respective periods then ended (subject, in the case of the
unaudited statements, to normal year-end audit adjustments and to any other
adjustments described therein and the fact that certain information and notes
have been condensed or omitted in accordance with the Exchange Act) in
conformity with GAAP (except in the case of the unaudited statements) applied
on a consistent basis during the periods involved (except as may be indicated
therein or in the notes thereto).

Section 6.14.        No
Required Vote of Crimson Parent Stockholders.

No vote of the stockholders of Crimson Parent is
required by law or by the Certificate of Incorporation or By-laws of Crimson
Parent in order for Crimson Parent and Purchaser to consummate the transactions
contemplated hereby, including the issuance of the Purchased Shares.

ARTICLE 7

COVENANTS OF THE PARTIES

Section 7.1.           Statements of Revenues and Expenses.

(a)           Seller
shall use its commercially reasonable efforts to cause Anadarko to prepare at
the sole cost and expense of Purchaser, either (i) if relief is granted by the
U.S. Securities and 

 23
 

Exchange Commission, statements of revenues and direct operating
expenses and all notes thereto related to the Assets or (ii) if such relief is
not granted by the U.S. Securities and Exchange Commission, the financial
statements required by the U.S. Securities and Exchange Commission (such
financial statements set forth in the foregoing clauses (i) and (ii), as
applicable, the “Statements of Revenues and Expenses”) in each case of clauses
(i) and (ii), that will be required of Purchaser or any of its Affiliates in
connection with reports, registration statements and other filings to be made
by Purchaser or any of its Affiliates related to the transactions contemplated
by this Agreement with the U.S. Securities and Exchange Commission pursuant to
the Securities Act, or the Exchange Act, in such form that such statements and
the notes thereto can be audited.  Seller
(x) shall cooperate with and, to the extent permitted by Anadarko, permit
Purchaser to reasonably participate in the preparation of the Statements of
Revenues and Expenses and (y) shall provide Purchaser and its representatives
with reasonable access to the personnel of Seller and its Affiliates who participate
in the preparation of the Statements of Revenues and Expenses.  Seller shall deliver the Statements of
Revenues and Expenses to Purchaser promptly after Seller receives such
financial statements from Anadarko.

(b)           Promptly
after the date of this Agreement, Seller shall engage KPMG, LLP to perform an
audit of the Statements of Revenues and Expenses and shall use commercially
reasonable efforts to cause KPMG, LLP to issue unqualified opinions with
respect to Statements of Revenues and Expenses (the Statements of Revenues and
Expenses and related audit opinions being hereinafter referred to as the “Audited
Financial Statements”) and provide its written consent for the use of its audit
reports with respect to Statements of Revenues and Expenses in reports filed by
Purchaser or any of its Affiliates under the Exchange Act or the Securities
Act, as needed.  Purchaser shall
reimburse Seller for all fees charged by KPMG, LLP pursuant to such engagement.  Seller shall take all action as may be
necessary to facilitate the completion of such audit and delivery of the
Audited Financial Statements to Purchaser or any of its Affiliates as soon as
reasonably practicable, but no later than ten (10) days prior to the date that
such Audited Financial Statements would be required to be filed by Purchaser or
any of its Affiliates with a report on Form 8-K or an amendment thereto under
the Exchange Act.  Seller shall provide
to Purchaser a draft of the Audited Financial Statements no later than fifteen
(15) days prior to the date that such Audited Financial Statements would be
required to be filed by Purchaser or any of its Affiliates with a report on
Form 8-K or an amendment thereto under the Exchange Act.  Seller shall keep Purchaser regularly
informed regarding the progress of such audit and also shall periodically
provide Purchaser with copies of drafts of the Audited Financial Statements and
related audit opinions.

Section 7.2.           Government Reviews.

Seller and Purchaser shall in a timely manner (i) make
all required filings, if any, with and prepare applications to and conduct
negotiations with, each Governmental Body as to which such filings,
applications or negotiations are necessary or appropriate in the consummation
of the transactions contemplated hereby and (ii) provide such information as
each may reasonably request to make such filings, prepare such applications and
conduct such negotiations.  Each party
shall cooperate with and use all commercially reasonable efforts to assist the
other with respect to such filings, applications and negotiations.

 24
 

Section 7.3.           Public Announcements.

At or after Closing, the content of any press release
or public announcement first announcing the consummation of this transaction
shall be subject to the prior review and reasonable approval of Seller and
Purchaser; provided, however,
the foregoing shall not restrict disclosures by Purchaser or Seller which are
required by applicable securities or other laws or regulations or the
applicable rules of any stock exchange having jurisdiction over the disclosing
party or its Affiliates.

Section 7.4.           Tax Matters.

Subject to the provisions of Section 10.3,
Seller shall be responsible for all Taxes related to the Company or the Assets
(other than ad valorem, property, severance, Hydrocarbon production and similar
Taxes based upon or measured by the ownership or operation of the Assets or the
production of Hydrocarbons therefrom, which are addressed in Section 1.4) prior to the Closing Date, and Purchaser shall
be responsible for all other such Taxes related to the Company or the Assets on
or after the Closing Date.  Seller shall
handle payment to the appropriate Governmental Body of all Taxes with respect
to the Company or the Assets which are required to be paid prior to Closing
(and shall file all Tax Returns with respect to such Taxes).  Purchaser shall file all Tax Returns that are
required to be filed after the Closing Date relating to the Company or the
Assets and shall handle payment to the appropriate Governmental Body of all
Taxes required to be paid with respect to such Tax Return.

Section 7.5.           Further Assurances.

After Closing, Seller and Purchaser each agrees to
take such further actions and to execute, acknowledge and deliver all such
further documents as are reasonably requested by the other party for carrying
out the purposes of this Agreement or of any document delivered pursuant to
this Agreement.

Section 7.6.           Anadarko
Purchase Agreement.

(a)           Purchaser
acknowledges that neither Seller nor the Company had ownership or control of
the Assets prior to the Anadarko Closing. 
Purchaser further acknowledges that it has received a copy of the
Anadarko Purchase Agreement, together with all exhibits and schedules thereto.

(b)           Following
the Anadarko Closing, Seller shall comply with the covenants, agreements and
obligations of Seller contained in the Anadarko Purchase Agreement (including,
without limitation Sections 3.7, 7.8, 11.1 and 11.3 of the Anadarko Purchase
Agreement) insofar as, and to the extent that, such covenants, agreements and obligations
relate to the Company or the Assets.

(c)           Seller
agrees that (i) any waiver following the Anadarko Closing by it of the
performance by Anadarko of any covenant or agreement of Anadarko contained in
the Anadarko Purchase Agreement, the waiver of which would adversely affect the
Assets, or (ii) any amendment or modification of the Anadarko Purchase
Agreement following the Anadarko Closing that would adversely affect the
Assets, in each case shall be subject to the Purchaser’s 

 25
 

prior written consent thereto (which consent shall not be unreasonably
withheld, conditioned or delayed) or absent obtaining such Purchaser’s consent,
any Losses that any Purchaser Indemnified Party incurs due to such waiver,
amendment or modification shall be subject to indemnification by Seller
pursuant to Section 9.5(c).

(d)           In
consideration of the benefits that Purchaser, the Company and Crimson Parent
shall receive pursuant to Section 1.11 of the Third Amendment, Purchaser and
the Company agree (i) to pay (or, if previously paid by Seller, to reimburse
Seller for) all costs and expenses associated with the continued employment of
the Employees (as defined in the Third Amendment, which Employees are set forth
on Exhibit X thereto) during the transition period specified in the Transition
Services Agreement, including, but not limited to, the costs and expenses of
any employee benefits and increase of severance arrangements previously offered
by Anadarko to such Employees, (ii) to reimburse Anadarko (or, if Anadarko is
previously reimbursed by Seller, Seller) within ten (10) days after receipt of
an invoice therefor (whether from Anadarko or from Seller) all costs and
expenses related to such extension of the terms of the Brammer Agreement (as
defined in the Third Amendment), and (iii) assume and perform Seller’s
obligation pursuant to Section 1.10(iii) of the Third Amendment to indemnify,
defend, and hold harmless the Seller Indemnified Persons (as defined in the
Anadarko Purchase Agreement) from and against any and all Losses asserted
against, resulting from, imposed upon, or incurred or suffered by any Seller
Indemnified Person (as defined in the Anadarko Purchase Agreement), directly or
indirectly, to the extent resulting from, arising out of, or relating to the
continued employment of the Employees and extension of the term of the Brammer
Agreement during the transition period.

Section 7.7.           Insurance.

(a)           Effective
as of the Closing Date, Purchaser shall cause the following insurance to be
carried and maintained with respect to the Company and the Assets:  (i) general liability insurance with combined
single limits per occurrence of not less than $1,000,000.00 for bodily injury
and property damage, including property damage by blowout and cratering,
completed operations, and contractual liability as respects any contract into
which Purchaser may enter under the terms of this Agreement; and (ii) operators
extra expense insurance with limits of not less than $1,000,000.00 per
occurrence, covering the costs of controlling a blowout, and certain other
related and/or resulting costs and seepage and pollution liability.

Section 7.8.           Transition Services Agreement.

At the Anadarko Closing, Seller and the Company
entered into a transition services agreement with Anadarko in substantially the
form attached as Exhibit I hereto (the “Transition
Services Agreement”).  Purchaser
acknowledges that the Company shall be liable for, and Purchaser agrees that it
shall cause the Company to pay, 25% of the management fee payable to Anadarko
pursuant to the Transition Services Agreement.

Section 7.9.           Preference
Rights and Transfer Requirements.

The Assets subject to Preference Rights (“Preference
Property”) described on Schedule 5.5(a)
have been conveyed to Seller (and not the Company) at the Anadarko Closing and
will not 

 26
 

be held by the Company at
the Closing and the Purchase Price has been reduced pursuant to Section 2.2(b) by the Allocated Value of such Preference
Property because as of the Closing Date the holder of the Preference Right in
respect of such Preference Property has not yet exercised or waived its
Preference Right and the time in which the Preference Right may be exercised
has not yet expired (the “Retained Preference Property”).  The Assets described on Schedule
5.5(b) were not conveyed to the Company by Anadarko at the Anadarko
Closing and will not be held by the Company at the Closing and the Purchase
Price has been reduced pursuant to Section 2.2(b)
by the Allocated Value of such Assets because as of the Closing Date such
Assets remain subject to a Transfer Requirement that has not been waived,
complied with or otherwise satisfied prior to the Anadarko Closing or the
Closing (the “Retained TR Assets”).  The
Retained Preference Property will be conveyed by Seller to Purchaser and the
Company at a delayed Closing (which shall become the new Closing Date with
respect to such Retained Preference Property) within ten (10) days following
the date on which Seller obtains a waiver of or notice of election not to
exercise or otherwise satisfies all remaining Preference Rights with respect to
such Retained Preference Property as contemplated by this Section 7.9.  The Retained TR Assets will be conveyed by
Seller (or by Anadarko at the direction of Seller) to Purchaser and the Company
at a delayed Closing (which shall become the new Closing Date with respect to
such Retained TR Assets) within ten (10) days following the date on which
Anadarko and/or Seller complies with, obtains a waiver of or otherwise
satisfies all remaining Transfer Requirements with respect to such Anadarko
Retained Assets and such Retained TR Assets are conveyed to Seller (or Anadarko
agrees to convey such Retained TR Assets directly to Purchaser or the
Company).  At any delayed Closing, Purchaser
shall pay to or at the direction of Seller a purchase price equal to the amount
by which the Purchase Price was reduced on account of the holding back of such
Retained Preference Property or Retained TR Asset (in each case, as adjusted
pursuant to Section 2.2 through the new
Closing Date therefor); provided, however, if all such Preference Rights and
Transfer Requirements with respect to any Retained Preference Property or
Retained TR Asset so held back at the initial Closing are not obtained,
complied with, waived or otherwise satisfied as contemplated by this Section
within one hundred eighty (180) days after the initial Closing has occurred
with respect to any Asset, then such Retained Preference Property or Retained
TR Asset shall be eliminated from the Assets and this Agreement and shall not
be transferred or conveyed to Purchaser or the Company, unless Seller and
Purchaser agree to proceed with a closing on such Retained Preference Property
or Retained TR Asset, in which case Seller and Purchaser shall be deemed to
have waived any objection (and shall be obligated to indemnify the Seller
Indemnified Persons for all Losses) with respect to non-compliance with such
Preference Rights and Transfer Requirements with respect to such Retained
Preference Property or Retained TR Asset.

ARTICLE 8

CLOSING

Section 8.1.           Time and Place of Closing.

The completion of the transactions contemplated by
this Agreement (the “Closing”) shall occur as of 11:00 a.m., local time, on the
date hereof (the “Closing Date”), at the offices of Vinson &
Elkins L.L.P., Houston, Texas.

 27
 

Section 8.2.           Obligations of Seller at Closing.

At the Closing, upon the terms of this Agreement,
Seller shall deliver or cause to be delivered to Purchaser and Crimson Parent,
or perform or cause to be performed, the following:

(a)           the
Assignment of Membership Interest, duly executed by Seller;

(b)           the
Transition Services Agreement, duly executed by Anadarko and the Company;

(c)           the
Seismic License, duly executed by Anadarko and the Company;

(d)           the
Registration Rights Agreement, duly executed by Seller; and

(e)           the
Conveyance (as defined in the Anadarko Purchase Agreement), duly executed by
the Company and Anadarko.

Section 8.3.           Obligations of Purchaser at Closing.

At the Closing, upon the terms of this Agreement,
Purchaser and Crimson Parent shall deliver or cause to be delivered to Seller,
or perform or caused to be performed, the following:

(a)           a
wire transfer of the Closing Payment, by wire transfer of immediately available
funds;

(b)           a
certificate, in proper form, issued in the name of Seller and evidencing the
number of shares of Crimson Parent Common Stock that comprise the Stock
Purchase Price;

(c)           a
legal opinion of counsel to Purchaser, dated as of the Closing, to the effect
that the Purchased Shares have been validly issued, fully paid and
nonassessable, in form and substance reasonably satisfactory to Seller;

(d)           the
Assignment of Membership Interest, duly executed by Purchaser; and

(e)           the
Registration Rights Agreement, duly executed by Crimson Parent.

Section 8.4.           Closing Adjustments.

(a)           Seller
has prepared and delivered to Purchaser, based upon the best information
available to Seller, the preliminary settlement statement attached hereto as Exhibit J estimating the cash portion of the Adjusted
Purchase Price after giving effect to all adjustments listed in Section 2.2 (which statement is consistent in all material
respects, to the extent applicable to the Assets, with the preliminary
settlement statement delivered by Anadarko to Seller pursuant to the Anadarko
Purchase Agreement).  The estimate
delivered in accordance with this Section 8.4(a)
constitutes the dollar amount to be paid by Purchaser to Seller at the Closing
(the “Closing Payment”).  Purchaser has
had the opportunity to review and discuss the preliminary settlement statement
with Seller.

 28
 

(b)           As
soon as reasonably practicable after the Closing but not later than ninety (90)
days following the Closing Date, Seller shall prepare and deliver to Purchaser
a statement setting forth the final calculation of the cash portion of the
Adjusted Purchase Price and showing the calculation of each adjustment, based,
to the extent possible, on actual credits, charges, receipts and other items
before and after the Effective Time and taking into account all adjustments
provided for in this Agreement (the “Final Cash Purchase Price”).  Seller shall, at Purchaser’s request, supply
reasonable documentation available to support any credit, charge, receipt or
other item.  Seller shall afford
Purchaser and its representatives the opportunity to review such statement and
the supporting schedules, analyses, workpapers, and other underlying records or
documentation as are reasonably necessary and appropriate in Purchaser’s review
of such statement.  Each party shall
cooperate fully and promptly with the other and their respective
representatives in such examination with respect to all reasonable requests
related thereto.  As soon as reasonably
practicable but not later than the 30th day following receipt of Seller’s
statement hereunder, Purchaser shall deliver to Seller a written report
containing any changes that Purchaser proposes be made to such statement.  Seller and Purchaser shall undertake to agree
on the final statement of the Final Cash Purchase Price no later than one
hundred eighty (180) days after the Closing Date (the “Final Settlement Date”).  In the event that Seller and Purchaser cannot
reach agreement by the Final Settlement Date, either party may refer the
remaining matters in dispute to Ernst & Young LLP, or such other
nationally-recognized independent accounting firm as may be mutually accepted
by Purchaser and Seller, for review and final determination (the “Agreed
Accounting Firm”).  If issues are
submitted to the Agreed Accounting Firm for resolution, Seller and Purchaser
shall each enter into a customary engagement letter with the Agreed Accounting
Firm at the time the issues remaining in dispute are submitted to the Agreed
Accounting Firm.  The Agreed Accounting
Firm will be directed to (i) review the statement setting forth Seller’s
calculation of the Final Cash Purchase Price and the records relating thereto
only with respect to items identified by Purchaser in its written report
containing changes to such statement that remain disputed immediately following
the Final Settlement Date and (ii) determine the final adjustments.  Each party shall furnish the Agreed
Accounting Firm such work papers and other records and information relating to
the objections in dispute as the Agreed Accounting Firm may reasonably request
and that are available to such party or its Affiliates (and such parties’
independent public accountants).  The
parties will, and will cause their representatives to, cooperate and assist in
the conduct of any review by the Agreed Accounting Firm, including, but not limited
to, making available books, records and, as available, personnel as reasonably
required.  The Agreed Accounting Firm
shall conduct the arbitration proceedings in Houston, Texas in accordance with
the Commercial Arbitration Rules of the American Arbitration Association, to
the extent such rules do not conflict with the terms of this Section 8.4(b).  The
Agreed Accounting Firm’s determination shall be made within thirty (30) days
after submission of the matters in dispute and shall be final and binding on
both parties, without right of appeal and such decision shall constitute an
arbitral award upon which a judgment may be entered by a court having
jurisdiction thereof.  In determining the
proper amount of any adjustment to the Final Cash Purchase Price, the Agreed
Accounting Firm shall not increase the Final Cash Purchase Price more than the
increase proposed by Seller nor decrease the Final Asset Value more than the
decrease proposed by Purchaser, as applicable, and may not award damages or
penalties to either party with respect to any matter.  Seller and Purchaser shall each bear its own
legal fees and other costs of presenting its case.  Each of Seller and Purchaser shall bear
one-half of the costs and expenses of the accounting firm.  Within ten

 29
 

(10) Business Days after the date on which the parties or the Agreed
Accounting Firm, as applicable, finally determines the disputed matters, (x)
Purchaser shall pay to Seller in cash (by wire transfer of immediately
available funds) the amount by which the Final Cash Purchase Price exceeds the
Closing Payment or (y) Seller shall pay to Purchaser in cash (by wire transfer
of immediately available funds) the amount by which the Closing Payment exceeds
the Final Cash Purchase Price, as applicable. 
Any post-Closing payment pursuant to this Section
8.4(b) shall bear interest at the Agreed Interest Rate from (but not
including) the Closing Date to (and including) the date both Purchaser and
Seller have executed the final settlement statement.

(c)           All
payments made or to be made hereunder to Seller shall be by electronic transfer
of immediately available funds to an account designated in writing by Seller,
for the credit of Seller.  All payments
made or to be made hereunder to Purchaser shall be by electronic transfer of
immediately available funds to a bank and account specified by Purchaser in
writing to Seller.

ARTICLE 9

POST-CLOSING OBLIGATIONS; INDEMNIFICATION;

LIMITATIONS; DISCLAIMERS AND WAIVERS

Section 9.1.           Receipts.

Except as otherwise provided in this Agreement, any
Hydrocarbons produced from or attributable to the Assets (and all products and
proceeds attributable thereto) and any other income, proceeds, receipts and
credits attributable to the Assets which are not reflected in the adjustments
to the Final Cash Purchase Price (following the final adjustment pursuant to Section 8.4(b)) shall be treated as follows:  (a) all Hydrocarbons produced from or
attributable to the Assets (and all products and proceeds attributable thereto)
and all other income, proceeds, receipts and credits earned with respect to the
Assets to which the Company is entitled under Section 1.4
shall be the sole property and entitlement of the Company, and, to the extent
received by Seller (including pursuant to Section 1.4 of the Anadarko
Purchase Agreement), Seller shall fully disclose, account for and remit the
same promptly to the Company, and (b) all Hydrocarbons produced from or
attributable to the Assets (and all products and proceeds attributable thereto)
and all other income, proceeds, receipts and credits earned with respect to the
Assets to which Seller or Anadarko is entitled under Section 1.4 shall
be the sole property and entitlement of Seller or Anadarko, as applicable, and,
to the extent received by Purchaser or any of its Affiliates (including the
Company), Purchaser shall fully disclose, account for and remit, or cause to be
remitted, the same promptly to Seller or Anadarko, as applicable.

Section 9.2.           Expenses.

Except for Royalty Amounts and except as otherwise
provided in this Agreement, any Property Costs which are not reflected in the
adjustments to the Final Cash Purchase Price (following the final adjustment
pursuant to Section 8.4(b)) shall be treated
as follows:  (a) all Property Costs for
which Seller or Anadarko is responsible under Section 1.4 shall
be the sole obligation of Seller or Anadarko, as applicable, and Seller or
Anadarko, as applicable, shall promptly pay, or if paid by Purchaser or any of
its Affiliates (including the Company), promptly reimburse Purchaser for and
hold Purchaser and its Affiliates (including the Company) harmless 

 30
 

from and against same;
and (b) all Property Costs for which Purchaser or the Company is responsible
under Section 1.4 shall be the sole
obligation of Purchaser and the Company, and Purchaser shall promptly pay, or
if paid by Seller (including pursuant to Section 1.4 of the Anadarko
Purchase Agreement), promptly reimburse Seller for and hold Seller harmless
from and against same.  Seller is
entitled to resolve all joint interest audits and other audits of Property
Costs covering periods for which Seller or Anadarko is wholly responsible and
Purchaser is entitled to resolve all joint interest audits and other audits of
Property Costs covering periods for which Purchaser or the Company is in whole
or in part responsible; provided that
Purchaser shall not agree to any adjustments to previously assessed costs for
which Seller or Anadarko is liable without the prior written consent of Seller,
such consent not to be unreasonably withheld. 
Purchaser shall provide Seller with a copy of all applicable audit
reports and written audit agreements received by Purchaser or any of its
Affiliates (including the Company) and relating to periods for which Seller is
partially responsible.

Section 9.3.           Assumed Anadarko Obligations.

Subject to the
indemnification by Anadarko under Section 11.5  of
the Anadarko Purchase Agreement, Purchaser acknowledges and understands that on
the Anadarko Closing Date, the Company assumed and agreed to fulfill, perform, pay
and discharge (or cause to be fulfilled, performed, paid or discharged) all of
the obligations and liabilities of Anadarko, known or unknown, with respect to
the Assets, regardless of whether such obligations or liabilities arose prior
to, on or after the Effective Time, including but not limited to obligations to
(a) furnish makeup gas according to the terms of applicable gas sales,
gathering or transportation contracts, and to satisfy all other gas balancing
obligations, if any, (b) pay working interests, royalties, overriding royalties
and other interests held in suspense, (c) properly plug and abandon any and all
wells, including inactive wells or temporarily abandoned wells, drilled on the
Properties, as required by Law, (d) replug any well, wellbore, or previously
plugged well on the Properties to the extent required by Governmental Body, (e)
dismantle, salvage and remove any equipment, structures, materials, platforms,
flowlines, and property of whatever kind related to or associated with operations
and activities conducted on the Properties, (f) clean up, restore and/or
remediate the premises covered by or related to the Assets in accordance with
applicable agreements and Laws, (g) perform all obligations applicable to or
imposed on the lessee, owner, or operator under the Leases or with respect to
the Mineral Interests and related contracts, or as required by applicable Laws,
and (h) pay working interests, royalties, overriding royalties and other
interests payable to third parties on account of production from the Assets
other than any royalties owed on account of production from the Properties
before the Closing Date as a result of or attributable to the resolution of the
Proceedings set forth on Schedule 9.3
(collectively, “Royalty Amounts”)(all of said obligations and liabilities,
excluding the Excluded Anadarko Obligations, herein being referred to as the “Assumed
Anadarko Obligations”).  Purchaser, Crimson Parent and the Company, on
the one hand, and Seller, on the other hand, agree and acknowledge that the
Company shall be responsible for, and shall fulfill, perform, pay and discharge
(or cause to be fulfilled, performed, paid or discharged) the obligations and
liabilities relating to or arising out of the Proceedings set forth on Schedule 9.3 that were assumed by the
Company at the Anadarko Closing pursuant to Anadarko Purchase Agreement and the
Conveyance (as defined in the Anadarko Purchase Agreement) and that such
obligations and liabilities relating to or arising out of the Proceedings shall
constitute Assumed Anadarko Obligations. Seller and not Company shall be
responsible for the obligations and liabilities relating to or arising out of
the other 

 31
 

Proceedings
(other than those set forth on Schedule 9.3)
that were assumed by Seller at the Anadarko Closing pursuant to Anadarko
Purchase Agreement and the Conveyance (as defined in the Anadarko Purchase
Agreement).  Following the
Closing, Purchaser shall cause the Company to fulfill, perform, pay and
discharge (or cause to be fulfilled, performed, paid or discharged) all of the
Assumed Anadarko Obligations.

Section 9.4.           Survival.

(a)           All
representations and warranties of Seller and Purchaser contained herein shall
survive the Closing Date and shall terminate on the first anniversary of the
Closing Date; provided, however,
that (i) the representations and warranties contained in Section 5.3,
Section 5.4, Section 5.6, Section 6.2, Section
6.3, and Section 6.5 (collectively,
the “Fundamental Representations”)  shall survive
until the expiration of the applicable statute of limitations period and (ii)
the representations and warranties contained in Section 5.5 and
the Anadarko Warranties and covenants to which Seller Indemnified Persons are
entitled to indemnification pursuant to Section 9.5(e) shall
survive the Closing Date and shall terminate on the first anniversary of the
Anadarko Closing Date.  Upon the
termination of a representation or warranty in accordance with the foregoing,
such representation or warranty shall have no further force or effect for any
purpose under this Agreement.  The
covenants and other agreements of Seller and Purchaser set forth in this
Agreement shall survive the Closing Date until fully performed.

(b)           No
party hereto shall have any indemnification obligation pursuant to this Article 9 or otherwise in respect of any representation,
warranty, covenant or agreement unless it shall have received from the party
seeking indemnification a written notice (a “Claim Notice”) of the existence of
the claim for or in respect of which indemnification in respect of such
representation, warranty, covenant or agreement is being sought on or before
the expiration of the applicable survival period set forth in Section 9.4(a).  If an
Indemnified Party delivers a Claim Notice to an Indemnifying Party before the
expiration of the applicable survival period set forth in Section
9.4(a), then the applicable representation, warranty, covenant or
agreement shall survive until, but only for purposes of, the resolution of the
matter covered by such Claim Notice.  A
Claim Notice shall set forth with reasonable specificity (1) the basis for such
claim under this Agreement, and the facts that otherwise form the basis of such
claim and (2) to the extent reasonably estimable, an estimate of the amount of
such claim (which estimate shall not be conclusive of the final amount of such
claim) and an explanation of the calculation of such estimate.

Section 9.5.           Indemnification by Seller.

From and after the Closing, subject to the terms and
conditions of this Article 9,
Seller shall indemnify, defend and hold harmless the Company, Purchaser and
Crimson Parent and their managers, directors, officers, employees,
stockholders, members, agents, consultants, advisors and other representatives
(including legal counsel, accountants and financial advisors) and Affiliates
and the successors and permitted assigns of this Agreement of Purchaser
(collectively, the “Purchaser Indemnified Persons”) from and against any and
all Losses asserted against, resulting from, imposed upon, or incurred or
suffered by any Purchaser Indemnified Person to the extent resulting from,
arising out of or relating to:

 32
 

(a)           any
breach of any representation or warranty of Seller contained in this Agreement
or confirmed in any certificate furnished by or on behalf of Seller in
connection with this Agreement;

(b)           any
breach or nonfulfillment of or failure to perform any covenant or agreement of
Seller contained in this Agreement or confirmed in any certificate furnished by
or on behalf of Seller in connection with this Agreement;

(c)           any
waiver, amendment or modification of a covenant of Anadarko contained in the
Anadarko Purchase Agreement that relates to the Assets and for which Seller
does not obtain Purchaser’s prior written consent in accordance with Section 7.6;

(d)           the
ownership, use or operation, following the Anadarko Closing Date, of the Assets
(as defined in the Anadarko Purchase Agreement) acquired directly by Seller
(and not by the Company) pursuant to the Anadarko Purchase Agreement;

(e)           any
breach of any Anadarko Warranty or any breach or nonfulfillment of or failure
to perform any covenant or agreement of Anadarko contained in the Anadarko
Purchase Agreement, in each case, only insofar as, and solely to the extent
that, (i) such breach or nonfulfillment adversely affects the Assets and (ii)
subject to the Section 9.5(e) Deductible and disregarding the Anadarko
Deductible, any Purchaser Indemnified Person would be entitled to
indemnification under Section 11.5(a) or 11.5(b) of the Anadarko Purchase
Agreement if the Purchaser Indemnified Person were the purchaser under the
Anadarko Purchase Agreement; and

(f)            other
than the Assumed Anadarko Obligations and the obligations of Purchaser and the
Company pursuant to Section 7.6(d),
the Assumed Seller Obligations (as defined in the Anadarko Purchase Agreement).

Section 9.6.           Indemnification by Purchaser.

From and after the Closing, subject to the terms and
conditions of this Article 9,
Purchaser, the Company and Crimson Parent shall jointly and severally
indemnify, defend and hold harmless Seller and its directors, officers,
employees, agents, consultants, stockholders, advisors and other
representatives (including legal counsel, accountants and financial advisors),
and Seller’s successors, permitted assigns of this Agreement and Affiliates
(collectively, the “Seller Indemnified Persons”) from and against any and all
Losses, asserted against, resulting from, imposed upon, or incurred or suffered
by any Seller Indemnified Person, directly or indirectly, to the extent
resulting from, arising out of, or relating to:

(a)           any
breach of any representation or warranty of Purchaser or Crimson Parent
contained in this Agreement or confirmed in any certificate furnished by or on
behalf of Purchaser or Crimson Parent to Seller in connection with this
Agreement;

(b)           any
breach or nonfulfillment of or failure to perform any covenant or agreement of
Purchaser, Crimson Parent or the Company contained in this Agreement or
confirmed in any certificate furnished by or on behalf of Purchaser or Crimson
Parent to Seller in connection with this Agreement;

 33
 

(c)           the
ownership, use or operation of the Assets after the Effective Time;

(d)           Environmental
Laws, Environmental Liabilities, the release of materials into the environment
or protection of human health, safety, natural resources or the environment, or
any other environmental condition of the Assets; and

(e)           the
Assumed Anadarko Obligations.

Section 9.7.           Indemnification Proceedings.

(a)           In
the event that any claim or demand for which Seller, on the one hand, or
Purchaser, the Company and Crimson Parent, on the other hand, (such Person, an “Indemnifying
Party”) may be liable to an Purchaser Indemnified Person under Section 9.5 or to an Seller Indemnified Person under Section 9.6 (an “Indemnified Party”) is asserted against or
sought to be collected from an Indemnified Party by a third party (a “Third
Party Claim,”) the Indemnified Party shall with reasonable promptness notify
the Indemnifying Party of such Third Party Claim by delivery of a Claim Notice,
provided that the failure or delay to so notify the Indemnifying Party shall
not relieve the Indemnifying Party of its obligations under this Article 9, except (and solely) to the extent that the
Indemnifying Party demonstrates that its defense of such Third Party Claim is
actually and materially prejudiced thereby. 
The Indemnifying Party shall have thirty (30) days from receipt of the
Claim Notice from the Indemnified Party (in this Section 9.7,
the “Notice Period”) to notify the Indemnified Party whether or not the
Indemnifying Party desires, at the Indemnifying Party’s sole cost and expense,
to defend the Indemnified Party against such claim or demand; provided, that the Indemnified Party is hereby authorized
prior to and during the Notice Period, and at the cost and expense of the
Indemnifying Party, to file any motion, answer or other pleading that it shall
reasonably deem necessary to protect its interests or those of the Indemnifying
Party.  The Indemnifying Party shall have
the right to assume the defense of such Third Party Claim only if and for so
long as the Indemnifying Party (i) notifies the Indemnified Party during the
Notice Period that the Indemnifying Party is assuming the defense of such Third
Party Claim, (ii) uses counsel of its own choosing that is reasonably
satisfactory to the Indemnified Party, and (iii) conducts the defense of such
Third Party Claim in an active and diligent manner.  If the Indemnifying Party is entitled to, and
does, assume the defense of any such Third Party Claim, the Indemnified Party
shall have the right to employ separate counsel at its own expense and to
participate in the defense thereof; provided, however, that notwithstanding the foregoing, the
Indemnifying Party shall pay the reasonable attorneys’ fees of the Indemnified
Party if the Indemnified Party’s counsel shall have advised the Indemnified
Party that there is a conflict of interest that could make it inappropriate
under applicable standards of professional conduct to have common counsel for
the Indemnifying Party and the Indemnified Party (provided that the
Indemnifying Party shall not be responsible for paying for more than one
separate firm of attorneys and one local counsel to represent all of the
Indemnified Parties subject to such Third Party Claim).  If the Indemnifying Party elects (and is
entitled) to assume the defense of such Third Party Claim, (i) no compromise or
settlement thereof or consent to any admission or the entry of any judgment
with respect to such Third Party Claim may be effected by the Indemnifying
Party without the Indemnified Party’s written consent (which shall not be
unreasonably withheld, conditioned or delayed) unless the sole relief provided
is monetary damages that are paid in full by the Indemnifying Party (and no
injunctive or other equitable relief is imposed upon the Indemnified Party) and
there is an unconditional 

 34
 

provision whereby each plaintiff or claimant in such Third Party Claim
releases the Indemnified Party from all liability with respect thereto and (ii)
the Indemnified Party shall have no liability with respect to any compromise or
settlement thereof effected without its written consent (which shall not be
unreasonably withheld).  If the Indemnifying
Party elects not to assume the defense of such Third Party Claim (or fails to
give notice to the Indemnified Party during the Notice Period or otherwise is
not entitled to assume such defense), the Indemnified Party shall be entitled
to assume the defense of such Third Party Claim with counsel of its own choice,
at the expense and for the account of the Indemnifying Party; provided, however, that
the Indemnified Party shall make no settlement, compromise, admission, or
acknowledgment that would give rise to liability on the part of any Indemnifying
Party without the prior written consent of such Indemnifying Party, which
consent shall not be unreasonably withheld, conditioned or delayed.

(b)           Notwithstanding
the foregoing, the Indemnifying Party shall not be entitled to control (but
shall be entitled to participate at its own expense in the defense of), and the
Indemnified Party, shall be entitled to have sole control over, the defense or
settlement, compromise, admission, or acknowledgment of any Third Party Claim
(i) at the reasonable expense of the Indemnifying Party, as to which the
Indemnifying Party fails to assume the defense during the Notice Period after
the Indemnified Party gives notice thereof to the Indemnifying Party or (ii) at
the reasonable expense of the Indemnifying Party, to the extent the Third Party
Claim seeks an order, injunction, or other equitable relief against the
Indemnified Party which, if successful, could materially adversely affect the
business, condition (financial or other), capitalization, assets, liabilities, results
of operations or prospects of the Indemnified Party.  The Indemnified Party shall make no
settlement, compromise, admission, or acknowledgment that would give rise to
liability on the part of the Indemnifying Party without the prior written
consent of the Indemnifying Party (which consent shall not be unreasonably
withheld, conditioned or delayed).

(c)           In
any case in which an Indemnified Party seeks indemnification hereunder and no
Third Party Claim is involved, the Indemnified Party shall deliver a Claim
Notice to the Indemnifying Party within a reasonably prompt period of time
after an officer of such Indemnified Party or its Affiliates has obtained
knowledge of the Loss giving rise to indemnification hereunder.  The failure or delay to so notify the
Indemnifying Party shall not relieve the Indemnifying Party of its obligations
under this Article 9 except to the extent
such failure results in insufficient time being available to permit the
Indemnifying Party to effectively mitigate the resulting Losses or otherwise
prejudices the Indemnifying Party.

(d)           Notwithstanding
the foregoing, the rights and obligations of Seller, on the one hand, and
Purchaser, the Company and Crimson Parent, on the other hand, under this Section 9.7 shall be subject (and subordinate) to the rights
and obligations of Anadarko pursuant to Section 11.7 of the Anadarko Purchase
Agreement as to any Third Party Claims under the Anadarko Purchase Agreement
for which Anadarko has the right to control the defense thereof insofar as such
Third Party Claim under the Anadarko Purchase Agreement relates to the matters
indemnified by Seller hereunder.

 35
 

Section 9.8.           Limitations on Indemnities.

(a)           Notwithstanding
the foregoing, (i) Seller shall not be obligated to indemnify any Purchaser
Indemnified Persons for Losses pursuant to Section 9.5(a),
and Purchaser, the Company and Crimson Parent shall not be obligated to
indemnify the Seller Indemnified Persons for Losses pursuant to Section 9.6(a), in each case, pursuant to this Article 9 unless and until the amount of all Losses incurred
by Purchaser Indemnified Persons, or by Seller Indemnified Persons, as the case
may be, exceeds, in the aggregate, $2,000,000 (the “Deductible”), in which
event the party or parties seeking indemnity may recover all Losses incurred in
excess of the Deductible, and (ii) Seller’s maximum liability for Losses
pursuant to Section 9.5(a), and Purchaser’s,
the Company’s and Crimson Parent’s aggregate maximum liability for Losses
pursuant to Section 9.6(a), in each case, shall
be $30,000,000; provided, however,
that, notwithstanding the foregoing, the Deductible shall not apply to (and the
Indemnified Parties shall be entitled to be indemnified for all Losses relating
to) any claims based on the occurrence of common law actual fraud and (B) any
claims asserted under Section 9.5(a),
or Section 9.6(a) insofar as such claims
relate to any breach of Fundamental Representations or any certificate to the
extent based on any such Fundamental Representation.

(b)           Notwithstanding
the foregoing, Seller shall not be obligated to indemnify any Purchaser
Indemnified Persons for Losses pursuant to Section 9.5(e)
unless and until the amount of all Losses incurred by Purchaser Indemnified
Persons pursuant to Section 9.5(e)
exceeds, in the aggregate, $7,500,000 (the “Section 9.5(e) Deductible”), in
which event the party or parties seeking indemnity may recover all Losses
incurred in excess of the Section 9.5(e)
Deductible; provided, however, that Seller’s maximum liability for Losses
pursuant to Section 9.5(e) shall be
$75,000,000.

(c)           Solely
for purposes of calculating the amount of Losses incurred, arising out of or
relating to any breach or inaccuracy of a representation or warranty (and not
for determining whether a breach has occurred), the references to “Material
Adverse Effect” or other materiality qualifications (or correlative terms)
shall be disregarded.

(d)           The
liability of any party under Article 9 shall
be in addition to, and not exclusive of, any other liability that such party
may have at Law or equity based on such party’s common law actual fraud.  None of the provisions set forth in this
Agreement, including, but not limited to, the provisions set forth in Section 9.4(b) (relating to limitations on the period during
which a claim for indemnification may be brought)  or Section 9.8(a) (relating to the Deductible), shall be
deemed a waiver by any party to this Agreement of any right or remedy which
such party may have at Law or equity based on any other party’s common law
actual fraud, nor shall any such provisions limit, or be deemed to limit, (i)
the amounts of recovery sought or awarded in any such claim for common law
actual fraud, (ii) the time period during which a claim for common law actual
fraud may be brought or (iii) the recourse which any such party may seek
against another party with respect to a claim for common law actual fraud; provided, that with respect to such rights and remedies at
law or equity, the parties further acknowledge and agree that none of the
provisions of this Section 9.8(d),
nor any reference to this Section 9.8(d)
throughout this Agreement, shall be deemed a waiver of any defenses which may
be available in respect of actions or claims for common law actual fraud,
including but not limited to, defenses of statutes of limitations or
limitations of damages.

 36

Section 9.9.           Release.

EXCEPT WITH RESPECT TO POST-CLOSING REMEDIATION
AGREED TO BY SELLER PURSUANT TO SECTION 4.3, EACH OF PURCHASER, CRIMSON PARENT
AND THE COMPANY HEREBY RELEASES, REMISES AND FOREVER DISCHARGES THE SELLER
INDEMNIFIED PERSONS FROM ANY AND ALL CLAIMS, KNOWN OR UNKNOWN, WHETHER NOW EXISTING OR ARISING IN THE FUTURE,
CONTINGENT OR OTHERWISE, WHICH PURCHASER, CRIMSON PARENT OR THE COMPANY
MIGHT NOW OR SUBSEQUENTLY MAY HAVE AGAINST THE SELLER INDEMNIFIED PERSONS,
RELATING DIRECTLY OR INDIRECTLY TO THE CLAIMS ARISING OUT OF OR INCIDENT TO ENVIRONMENTAL LAWS, ENVIRONMENTAL LIABILITIES,
THE RELEASE OF MATERIALS INTO THE ENVIRONMENT OR PROTECTION OF HUMAN HEALTH,
SAFETY, NATURAL RESOURCES OR THE ENVIRONMENT, INCLUDING, WITHOUT
LIMITATION, RIGHTS TO CONTRIBUTION UNDER CERCLA, REGARDLESS OF FAULT.

Section 9.10.        Disclaimers.

EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN
THIS AGREEMENT, OR CONFIRMED IN THE
CERTIFICATE OF SELLER TO BE DELIVERED PURSUANT TO SECTION 8.2(c), (I)
SELLER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS, STATUTORY OR IMPLIED,
AND (II) SELLER EXPRESSLY DISCLAIMS ALL LIABILITY AND RESPONSIBILITY FOR ANY
REPRESENTATION, WARRANTY, STATEMENT OR INFORMATION MADE OR COMMUNICATED (ORALLY
OR IN WRITING) TO PURCHASER OR ANY OF ITS AFFILIATES (INCLUDING CRIMSON PARENT
AND THE COMPANY), EMPLOYEES, AGENTS, CONSULTANTS OR REPRESENTATIVES (INCLUDING,
WITHOUT LIMITATION, ANY OPINION, INFORMATION, PROJECTION OR ADVICE THAT
MAY HAVE BEEN PROVIDED TO PURCHASER, CRIMSON PARENT OR THE COMPANY BY ANY
OFFICER, DIRECTOR, EMPLOYEE, AGENT, CONSULTANT, REPRESENTATIVE OR ADVISOR OF
SELLER OR ANY OF ITS AFFILIATES).

EXCEPT AS
EXPRESSLY REPRESENTED OTHERWISE IN ARTICLE 5 OF THIS AGREEMENT, OR
CONFIRMED IN THE CERTIFICATE OF SELLER TO BE DELIVERED PURSUANT TO
SECTION 8.2(c) AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING,
SELLER EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY
OR IMPLIED, AS TO (I) TITLE TO ANY OF THE ASSETS, (II) THE CONTENTS, CHARACTER
OR NATURE OF ANY DESCRIPTIVE MEMORANDUM, OR ANY REPORT OF ANY PETROLEUM
ENGINEERING CONSULTANT, OR ANY GEOLOGICAL OR SEISMIC DATA OR INTERPRETATION,
RELATING TO THE ASSETS, (III) THE QUANTITY, QUALITY OR RECOVERABILITY OF
PETROLEUM SUBSTANCES IN OR FROM THE ASSETS, (IV) ANY ESTIMATES OF THE VALUE OF
THE ASSETS OR FUTURE REVENUES GENERATED BY THE ASSETS, (V) THE PRODUCTION OF
HYDROCARBONS FROM THE ASSETS, (VI) THE MAINTENANCE, REPAIR, 

 37
 

CONDITION, QUALITY, SUITABILITY,
DESIGN OR MARKETABILITY OF THE ASSETS, (VII) THE CONTENT, CHARACTER OR NATURE
OF ANY DESCRIPTIVE MEMORANDUM, REPORTS, BROCHURES, CHARTS OR STATEMENTS
PREPARED BY THIRD PARTIES, (VIII) ANY OTHER MATERIALS OR INFORMATION THAT
MAY HAVE BEEN MADE AVAILABLE OR COMMUNICATED TO PURCHASER OR ITS
AFFILIATES (INCLUDING CRIMSON PARENT AND THE COMPANY), OR ITS OR THEIR
EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES OR ADVISORS IN CONNECTION WITH
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY DISCUSSION OR
PRESENTATION RELATING THERETO, AND FURTHER DISCLAIMS ANY REPRESENTATION OR
WARRANTY, EXPRESS, STATUTORY OR IMPLIED, OF MERCHANTABILITY, FREEDOM FROM
REDHIBITORY VICES OR DEFECTS (INCLUDING THOSE CONTEMPLATED IN LOUISIANA CIVIL
CODE ARTICLES 2475, AND 2520 THROUGH 2548), FITNESS FOR A PARTICULAR PURPOSE OR
CONFORMITY TO MODELS OR SAMPLES OF MATERIALS OF ANY EQUIPMENT, IT BEING
EXPRESSLY UNDERSTOOD AND AGREED BY THE PARTIES HERETO THAT PURCHASER, THE
COMPANY AND CRIMSON PARENT SHALL BE DEEMED TO BE OBTAINING THE ASSETS IN THEIR
PRESENT STATUS, CONDITION AND STATE OF REPAIR, “AS IS” AND “WHERE IS” WITH ALL
FAULTS AND THAT EACH OF PURCHASER, THE COMPANY AND CRIMSON PARENT HAS MADE OR
CAUSED TO BE MADE SUCH INSPECTIONS AS PURCHASER, THE COMPANY AND CRIMSON PARENT
DEEMS APPROPRIATE, OR (IX) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM
PATENT OR TRADEMARK INFRINGEMENT.

SELLER HAS NOT AND WILL NOT MAKE ANY
REPRESENTATION OR WARRANTY REGARDING ANY MATTER OR CIRCUMSTANCE RELATING TO
ENVIRONMENTAL LAWS, ENVIRONMENTAL LIABILITIES, THE RELEASE OF MATERIALS INTO
THE ENVIRONMENT OR THE PROTECTION OF HUMAN HEALTH, SAFETY, NATURAL RESOURCES OR
THE ENVIRONMENT, OR ANY OTHER ENVIRONMENTAL CONDITION OF THE ASSETS, AND
NOTHING IN THIS AGREEMENT OR OTHERWISE SHALL BE CONSTRUED AS SUCH A
REPRESENTATION OR WARRANTY, AND PURCHASER, THE COMPANY AND CRIMSON PARENT SHALL
BE DEEMED TO BE TAKING THE ASSETS “AS IS” AND “WHERE IS” FOR PURPOSES OF THEIR
ENVIRONMENTAL CONDITION.

Section 9.11.        Waiver of Trade Practices Acts.

(a)           It
is the intention of the parties that Purchaser’s and Crimson Parent’s rights
and remedies with respect to this transaction and with respect to all acts or
practices of Seller, past, present or future, in connection with this
transaction shall be governed by legal principles other than the Texas
Deceptive Trade Practices—Consumer Protection Act, Tex. Bus. & Com.
Code Ann. § 17.41 et seq. (the “DTPA”)
or the Louisiana unfair trade practices and consumer protection law, La. R.S.
51:1402, et seq. (the “UTPCPL”).  As such, each of Purchaser and Crimson Parent
hereby waives the applicability of the DTPA and the UTPCPL to this transaction
and any and all duties, rights or remedies that might be imposed by the DTPA
and/or the UTPCPL, whether such duties, rights and remedies are applied
directly by the DTPA or the 

 38
 

UTPCPL itself or indirectly in connection with other statutes; provided, however, neither Purchaser nor Crimson Parent
waives § 17.555 of the DTPA.  Each
of Purchaser and Crimson Parent acknowledges, represents and warrants that it
is purchasing the goods and/or services covered by this Agreement for
commercial or business use; that it has assets of $5,000,000.00 or more
according to its most recent financial statement prepared in accordance with
GAAP; that it has knowledge and experience in financial and business matters
that enable it to evaluate the merits and risks of a transaction such as this;
and that it is not in a significantly disparate bargaining position with
Seller.  The foregoing waivers shall be
applicable to the Affiliates of Purchaser and Crimson Parent.

(b)           Each
of Purchaser and Crimson Parent expressly recognizes that the price for which
Seller has agreed to perform its obligations under this Agreement has been
predicated upon the inapplicability of the DTPA and the UTPCPL and this waiver
of the DTPA and the UTPCPL.  Each of
Purchaser and Crimson Parent further recognizes that Seller, in determining to
proceed with the entering into of this Agreement, has expressly relied on this
waiver and the inapplicability of the DTPA and the UTPCPL.

Section 9.12.        Redhibition Waiver.

Each of Purchaser and Crimson Parent waives all rights
in redhibition pursuant to Louisiana Civil Code Articles 2475 and 2520 through
2548, and acknowledges that this express waiver shall be considered a material
and integral part of this transaction and the consideration thereof.  Each of Purchaser and Crimson Parent
acknowledges that this waiver has been brought to its attention and has been
explained in detail and that each of Purchaser and Crimson Parent has voluntarily
and knowingly consented to this waiver of warranty of fitness and warranty
against redhibitory vices and defects for the Assets.  The foregoing waivers shall be applicable to
the Affiliates of Purchaser and Crimson Parent.

ARTICLE 10

MISCELLANEOUS

Section 10.1.        Counterparts.

This Agreement may be executed and delivered
(including by facsimile transmission) in counterparts, each of which shall be
deemed an original instrument, but all such counterparts together shall
constitute but one agreement.

Section 10.2.        Notice.

All notices which are required or may be given
pursuant to this Agreement shall be sufficient in all respects if given in
writing and delivered personally, by telecopy or by registered or certified
mail, postage prepaid, as follows:

 39
 

 

	
  If to Seller:

  	
   

  	
  EXCO Resources, Inc.

  
	
   

  	
   

  	
  12377 Merit
  Drive, Suite 1700

  
	
   

  	
   

  	
  Dallas, Texas
  75251

  
	
   

  	
   

  	
  Attention:
  William L. Boeing

  
	
   

  	
   

  	
  Telephone: (214)
  368-2084

  
	
   

  	
   

  	
  Telecopy: (214)
  706-3409

  
	
   

  	
   

  	
   

  
	
  With a copy to
  (which:

  	
   

  	
  Vinson & Elkins L.L.P.

  
	
  shall not
  constitute

  	
   

  	
  2001 Ross Avenue, Suite 3700

  
	
  notice to
  Seller)

  	
   

  	
  Dallas, Texas 75201

  
	
   

  	
   

  	
  Attention:
  Jeffrey A. Chapman

  
	
   

  	
   

  	
  Telephone: (214)
  220-7797

  
	
   

  	
   

  	
  Telecopy: (214)
  999-7797

  
	
   

  	
   

  	
  Attention: P.
  Gregory Hidalgo

  
	
   

  	
   

  	
  Telephone: (214)
  220-7959

  
	
   

  	
   

  	
  Telecopy: (214)
  999-7959

  
	
   

  	
   

  	
   

  
	
  If to Purchaser
  or

  	
   

  	
  Crimson Exploration Operating, Inc.

  
	
  Crimson Parent:

  	
   

  	
  717 Texas Avenue, Suite 2900

  
	
   

  	
   

  	
  Houston, Texas
  77002

  
	
   

  	
   

  	
  Attention: Tracy
  Price

  
	
   

  	
   

  	
  Telephone: (713)
  236-7400

  
	
   

  	
   

  	
  Fax: (713)
  236-4402

  

 

Any party may change its address for notice by notice
to the other in the manner set forth above. 
All notices shall be deemed to have been duly given at the time of
receipt by the party to which such notice is addressed.

Section 10.3.        Sales or Use Tax Recording Fees and Similar Taxes and Fees.

Purchaser shall bear any sales, use, excise, real
property transfer, gross receipts, goods and services, registration, capital,
documentary, stamp or transfer Taxes, recording fees and similar Taxes and fees
(collectively “Transfer Taxes”) incurred and imposed upon, or with respect to,
the transactions contemplated by this Agreement.  Seller will determine, and Purchaser will
cooperate with Seller in determining the amount of any Transfer Taxes, if any,
that is due in connection with the transactions contemplated by this Agreement
and Purchaser agrees to pay any such Transfer Tax to Seller or to the
appropriate Governmental Body.  If any of
the transactions contemplated by this Agreement are exempt from any such
Transfer Taxes upon the filing of an appropriate certificate or other evidence
of exemption, Purchaser will timely furnish to Seller such certificate or
evidence.

Section 10.4.        Expenses.

Except as otherwise expressly provided in Section 10.3 or elsewhere in this Agreement, (a) all
expenses incurred by Seller in connection with or related to the authorization,
preparation or execution of this Agreement and the Exhibits and Schedules
hereto and thereto, and all other matters related to the Closing, including
without limitation, all fees and expenses of counsel, 

 40
 

accountants and financial
advisers employed by Seller, shall be borne solely and entirely by Seller, and
(b) all such expenses incurred by Purchaser or Crimson Parent shall be borne
solely and entirely by Purchaser and Crimson Parent.

Section 10.5.        Change of Name.

Following the Closing, each of Purchaser and Crimson
Parent shall comply (and shall cause the Company and all other Affiliates of
Purchaser and Crimson Parent to comply) with the obligations of Seller pursuant
to Section 12.5 of the Anadarko Purchase Agreement insofar as such
obligations relate to the Assets. 
Without limiting the generality of the foregoing, as promptly as
practicable, but in any case within ninety (90) days after the Anadarko Closing
Date, Purchaser and Crimson Parent shall eliminate (and shall cause the Company
and all other Affiliates of Purchaser and Crimson Parent to eliminate) (i) the
names “Anadarko Petroleum Corporation”, “Anadarko” and any variants thereof,
(ii) any names of Anadarko’s Affiliates and any variants thereof, (iii) the
name “EXCO” and any variants thereof and (iii) any names of Seller’s Affiliates
and any variants thereof from the Assets acquired pursuant to this Agreement
and, except with respect to such grace period for eliminating existing usage,
shall have no right to use any logos, trademarks or trade names belonging to
Anadarko or Seller or any of their respective Affiliates.

Section 10.6.        Replacement of Bonds, Letters of Credit and Guarantees.

The parties understand that none of the bonds, letters
of credit and guarantees, if any, posted by Seller or any of its Affiliates
with Governmental Bodies and relating to the Assets may be transferable to
Purchaser or the Company.  Promptly
following Closing, Purchaser shall obtain, or cause to be obtained in the name
of Purchaser or the Company, replacements for such bonds, letters of credit and
guarantees, to the extent such replacements are necessary to permit the
cancellation of the bonds, letters of credit and guarantees posted by Seller or
any of its Affiliates or to consummate the transactions contemplated by this
Agreement.

Section 10.7.        Governing Law and Venue.

THIS AGREEMENT AND THE LEGAL RELATIONS BETWEEN THE
PARTIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS OTHERWISE
APPLICABLE TO SUCH DETERMINATIONS. 
JURISDICTION AND VENUE WITH RESPECT TO ANY DISPUTES ARISING HEREUNDER
SHALL BE PROPER ONLY IN DALLAS COUNTY, TEXAS.

Section 10.8.        Captions.

The captions in this Agreement are for convenience
only and shall not be considered a part of or affect the construction or
interpretation of any provision of this Agreement.

Section 10.9.        Waivers.

Any failure by any party or parties to comply with any
of its or their obligations, agreements or conditions herein contained may be
waived in writing, but not in any other 

 41
 

manner, by the party or
parties to whom such compliance is owed. 
No waiver of, or consent to a change in, any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of, or consent to a
change in, other provisions hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver unless otherwise expressly provided.

Section 10.10.      Assignment.

No party shall assign all or any part of this Agreement,
nor shall any party assign or delegate any of its rights or duties hereunder,
without the prior written consent of the other party.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.

Section 10.11.      Entire Agreement.

The Confidentiality Agreement, this Agreement and the
Exhibits and Schedules attached hereto, and the documents to be executed
hereunder constitute the entire agreement between the parties pertaining to the
subject matter hereof, and supersede all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties
pertaining to the subject matter hereof.

Section 10.12.      Amendment.

(a)           This
Agreement may be amended or modified only by an agreement in writing executed
by the parties hereto.

(b)           No
waiver of any right under this Agreement shall be binding unless executed in
writing by the party to be bound thereby.

Section 10.13.      No Third-Party Beneficiaries.

Nothing in this Agreement shall entitle any Person
other than Purchaser or Crimson Parent or the Company, on the one hand, or
Seller, on the other hand, to any claims, remedy or right of any kind, except
as to those rights expressly provided to the Seller Indemnified Persons and
Purchaser Indemnified Persons (provided, however, any claim for indemnity
hereunder on behalf of an Seller Indemnified Person or an Purchaser Indemnified
Person must be made and administered by Purchaser in respect of Purchaser
Indemnified Persons and Seller in respect of Seller Indemnified Persons).

Section 10.14.      References.

In this Agreement:

(a)           References
to any gender includes a reference to all other genders;

(b)           References
to the singular includes the plural, and vice versa;

(c)           Reference
to any Article or Section means an Article or Section of
this Agreement;

 42
 

(d)           Reference
to any Exhibit or Schedule means an Exhibit or Schedule to this
Agreement, all of which are incorporated into and made a part of this
Agreement;

(e)           Unless
expressly provided to the contrary, “hereunder”, “hereof’, “herein” and words
of similar import are references to this Agreement as a whole and not any
particular Section or other provision of this Agreement;

(f)            “Include”
and “including” shall mean include or including without limiting the generality
of the description preceding such term; and

(g)           Capitalized
terms used herein shall have the meanings ascribed to them in this Agreement as
such terms are identified and/or defined in the Definitions section hereof.

Section 10.15.      Construction.

Each of Purchaser and Crimson Parent is a party
capable of making such investigation, inspection, review and evaluation of the
Assets as a prudent party would deem appropriate under the circumstances
including with respect to all matters relating to the Assets, their value,
operation and suitability.  Each of
Seller and Purchaser and Crimson Parent has had substantial input into the
drafting and preparation of this Agreement and has had the opportunity to
exercise business discretion in relation to the negotiation of the details of
the transactions contemplated hereby. 
This Agreement is the result of arm’s-length negotiations from equal
bargaining positions.  In the event of a
dispute over the meaning or application of this Agreement, it shall be
construed fairly and reasonably and neither more strongly for nor against
either party.

Section 10.16.      Conspicuousness.

The parties agree that provisions in this Agreement in
“bold” type satisfy any requirements of the “express negligence rule” and any
other requirements at law or in equity that provisions be conspicuously marked
or highlighted.

Section 10.17.      Severability.

If any term or other provisions of this Agreement is
held invalid, illegal or incapable of being enforced under any rule of law, all
other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in a materially adverse manner
with respect to any party; provided, however, that if any such term or provision may be made
enforceable by limitation thereof, then such term or provision shall be deemed
to be so limited and shall be enforceable to the maximum extent permitted by
applicable Law.

Section 10.18.      Time of Essence.

Time is of the essence in this Agreement.  If the date specified in this Agreement for
giving any notice or taking any action is not a Business Day (or if the period
during which any notice is required to be given or any action taken expires on
a date which is not a Business Day), then the date for giving such notice or
taking such action (and the expiration date of such period 

 43
 

during which notice is
required to be given or action taken) shall be the next day which is a Business
Day.

Section 10.19.      Affiliate Liability.

Each of the following is herein referred to, for
purposes of this Section 10.19, as an “Seller
Affiliate”:  (i) any direct or indirect
holder of equity interests in Seller (whether shareholders or otherwise), and
(ii) any director, officer, manager, employee, representative or agent of (a)
Seller or (b) any Affiliate of Seller. 
Except to the extent that a Seller Affiliate is an express signatory and
party hereto, no Seller Affiliate shall have any liability or obligation of any
nature whatsoever in connection with or under this Agreement, or the
transactions contemplated hereby, and Purchaser and Crimson Parent hereby waive
and release all claims of any such liability and obligation.

Section 10.20.      Schedules.

The disclosures in any Schedule must relate only to
the representations and warranties in the Section of this Agreement to
which it expressly relates and not to any other representation or warranty in
this Agreement, unless some other representation and warranty is specifically
and clearly referred to in such Schedule.

Section 10.21.      Limitation on Damages.

Notwithstanding any other provision contained
elsewhere in this Agreement to the contrary, the parties acknowledge that this
Agreement does not authorize one party to sue for or collect from the other
party its own punitive damages, or its own consequential or indirect damages in
connection with this Agreement and the transactions contemplated hereby and
each party expressly waives for itself and on behalf of its Affiliates, any and
all Claims it may have against the other party for its own such damages in
connection with this Agreement and the transactions contemplated hereby.

[SIGNATURES BEGIN ON THE FOLLOWING PAGE]

 44

IN WITNESS WHEREOF, this Agreement has been signed by
each of the parties hereto on the date first above written.

	
  

  	
  SELLER:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXCO
  RESOURCES, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ R. L. Hodges

  	
   

  
	
   

  	
  Name:

  	
  R. L. Hodges

  	
   

  
	
   

  	
  Title:

  	
  Vice President - Land

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COMPANY:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SOUTHERN
  G HOLDINGS, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ R. L. Hodges

  	
   

  
	
   

  	
  Name:

  	
  R. L. Hodges

  	
   

  
	
   

  	
  Title:

  	
  Vice President - Land

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CRIMSON
  EXPLORATION OPERATING, 

  INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Tracy Price

  	
   

  
	
   

  	
  Name:

  	
  Tracy Price

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President of Land and 

  Business Development

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CRIMSON
  PARENT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CRIMSON
  EXPLORATION INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ Tracy Price

  	
   

  
	
   

  	
  Name:

  	
  Tracy Price

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President of Land and 

  Business Development

  	
   

  
						

 

SIGNATURE PAGE

MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT

SOUTHERN G HOLDINGS, LLC

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