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Exhibit 10.61    
  

DISTRIBUTORSHIP AGREEMENT  

        THIS AGREEMENT made and entered into effective as of July 31, 2002, between OPTISCHE SYSTEME GOTTINGEN ISCO-OPTIC AG,
Anna-Vandenhoeck-Ring 5, 37081 Gottingen, Germany, hereinafter referred to as "ISCO" and BALLANTYNE OF OMAHA, INC., a Nebraska corporation, 4350 McKinley Road, Omaha,
Nebraska 68112, hereinafter referred to as "Ballantyne", pursuant to which Ballantyne will act as the exclusive distributor for ABC products (annex "A") in Ballantyne's territory (USA, Canada,
Mexico). 

        NOW,
THEREFORE, the parties hereto agree and covenant as follows: 

        1.    GRANT OF DISTRIBUTORSHIP. 

        ISCO
hereby grants Ballantyne, subject to the provisions of the Agreement, the exclusive right to sell, lease, or otherwise distribute and service the ISCO products identified in the
attached Annex "A", and such new or additional products in addition to or in support of this line of products as may be from time to time developed or offered by ISCO within and throughout
Ballantyne's territory (USA, Canada, Mexico). Ballantyne agrees to go on exhibitions, to advertise in corresponding magazines and to undertake all necessary steps to market the ISCO products, to
secure business and markets for the named products of ISCO in such territory, to develop and maintain a substantial volume of sales of said products, to use diligent efforts to establish contacts with
customers, promote ISCO's products and develop customer specifications consistent with those of ISCO's products. In addition, Ballantyne will seek new product ideas or new application ideas and from
time to time forward them as feedback to ISCO. 

        Annex
"A", as attached at the time of the signing of the Agreement, is for illustrative purposes only to provide an initial list of products to be covered by this Agreement. At the
effective date of this Agreement the parties will initial and attach the ISCO Distributor Price List in effect immediately prior to the ISCO distributor price list in effect on that date. Ballantyne
shall not distribute or sell in the territory any products shown in Annex "A" which are not produced by ISCO. 

        2.    PURCHASE OF UNITS. 

        Orders
shall be placed by Ballantyne by issuance of a purchase order and all necessary import certifications and permits. 

        3.    PRICE. 

        A.    The
prices applicable to products under this Agreement shall be those shown on the ISCO Distributor Price List. When a new ISCO Distributor Price List becomes effective,
the ISCO Distributor Price List that it replaced will be initialized by the parties and attached and incorporated herein as a new Annex "A". 

        B.    ISCO
will provide Ballantyne with a copy of any new ISCO Distributor Price List at least ninety (90) days prior to its effective date. 

        C.    Any
price decreases reflected on any new ISCO Distributor Price List or otherwise made available by ISCO to is distributors will immediately, upon their effective date,
apply to purchases under this Agreement. 

        D.    Any
new ISCO lens products, as generally described in this Agreement, or other ISCO lens products which are not listed on the then-current Annex "A", shall be
available to Ballantyne at the lowest prices at which they are available to other ISCO distributors or customers in the European market (all countries which are members of the European Union). 

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        E.    ISCO
covenants and agrees that the prices at which products are offered to Ballantyne shall be no higher than one hundred five percent (105%) of those offered to any
other customer purchasing such products in like quantities (during a period of twelve months) from ISCO in the European market. No customer of ISCO shall be offered a price for these products that is
lower than ninety-five percent
(95%) of the price charged to Ballantyne. In case ISCO acts contrary to the above mentioned regulations, Ballantyne shall be entitled to claim to be put in the same position as the other customer to
whom the products were sold at a favorable price. 

        F.    Prices
for sales to Ballantyne or commissions earned by Ballantyne for sales to other customers in the territory for special lenses, customer lenses, special venue
projection lenses or other ISCO lens products which are not listed on the then-current Annex "A" and which are not available to other ISCO distributors or customers shall be determined by
negotiation between Ballantyne and ISCO. 

        4.    DELIVERY. 

        A.    Ballantyne
will pay freight charges on all shipments made hereunder. Shipments will be made by air freight with shipments consolidated to obtain the cheapest possible
rate, and for all shipments the terms of delivery are "ex work Gottingen". 

        B.    ISCO
shall make shipment of products ordered under this Agreement within one hundred twenty (120) days following receipt of orders from Ballantyne. If any orders
cannot be delivered within this time period, ISCO shall notify Ballantyne in writing of the reason for the delay and state a date upon which shipment will be made. 

        C.    ISCO
shall provide Ballantyne with notice of any inventory stocks that are at low levels so that Ballantyne can anticipate possible delays in shipment for those products 

        D.    All
products will be packed and packaged with adequate protection to withstand the rigors of international air shipment and handling. Risk of loss or damage in transit
shall be borne by Ballantyne's transport insurance carrier. Title to the products shall pass to Ballantyne upon delivery to the carrier. 

        E.    Ballantyne
will provide to ISCO on a monthly basis the sales activity by product to assist ISCO in planning its production. ISCO will receive quarterly and accumulated
figures from Ballantyne, as mentioned in Annex "B". 

        5.    ACCEPTANCE. 

        A.    All
products ordered shall be subject to final inspection and acceptance at Ballantyne within thirty (30) days following delivery. If the products are to be
shipped directly to Ballantyne's customer or
delivered to the customer without being opened and repackaged by Ballantyne, final inspection and acceptance will be made at the customer's facility within thirty (30) days after delivery to
the customer. 

        B.    ISCO
shall supply all technical data necessary for acceptance of its products. 

        6.    EXCLUSION OF OTHER DISTRIBUTORS. 

        ISCO
shall make sure to the extent which is reasonable and common in the relevant kind of business to prevent its other distributors from making sales, advertising, or promotion efforts
in, or ship ISCO products into Ballantyne's territory (USA, Canada, Mexico). 

        7.    TRADEMARKS OR TRADE NAMES. 

        A.    ISCO
grants to Ballantyne the right to use any trademark or trade name of ISCO that is associated with the products purchased hereunder whether or not such trademark or
trade name has been registered. 

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        B.    In
addition to use of ISCO's trademarks and trade names, Ballantyne shall have the right to use other trademarks or trade names which it may consider appropriate in
connection with the products, after confirmation from ISCO. 

        C.    Trademarks
and trade names created by Ballantyne shall be used only in the territory stated in Ballantyne's territory (USA, Canada, Mexico), unless otherwise agreed to
between ISCO and Ballantyne. 

        D.    Trademarks
or trade names created by Ballantyne may be registered by Ballantyne and shall be considered exclusively the property of Ballantyne. No right to any other ISCO
distributor to use such trademarks or trade names is granted by Ballantyne under this Agreement, although such grant may be given by specific agreement in the future. 

        E.    ISCO
will take all necessary steps to protect and retain all trademarks or service marks registered by ISCO in the United States for products purchased hereunder. If ISCO
fails to do so in a timely
manner, upon written notice to ISCO, Ballantyne may, at its sole option and without obligation, do so and offset any costs incurred against future payments due to ISCO. If such offset is insufficient
to reimburse such costs to Ballantyne, then ISCO will promptly reimburse Ballantyne in full. 

        8.    PAYMENTS. 

        A.    Payment
terms during the first twelve (12) months of this Agreement are fourteen (14) days after receipt of goods by Ballantyne or its customer, with a two
percent (2%) discount. Thereafter, payment terms will be thirty (30) days from receipt of goods by Ballantyne or its customer, with a discount of two percent (2%) if paid within fourteen
(14) days from receipt of product by Ballantyne or its customer. 

        B.    All
payments shall be made in Euros. 

        9.    EXISTING INVENTORY. 

        Ballantyne
agrees that its inventory of lenses shall remain constant at at least One Million One Hundred Thousand and 00/100ths Dollars ($1,100,000.00) for a period of one
(1) year, and Ballantyne shall order additional product required to maintain such level during the first year. ISCO agrees that, to the extent the inventory of any item to be acquired by
Ballantyne exceeds a one-year's supply, based on prior sales by Ballantyne, ISCO will cooperate with and assist Ballantyne in shipping such excess inventory for sale outside of
Ballantyne's territory. After one year from the effective date of this Agreement, if any items exceeding a one-year's supply remain in Ballantyne's inventory, the parties will develop a
mutually agreed upon schedule pursuant to which Ballantyne will return such excess inventory to ISCO as agreed to by both parties over a two-year period. In this mutual agreement ISCO and
Ballantyne also have to reach an understanding on the valuation of the excess inventory to be returned as well as on the terms of the payments to be mace by ISCO to Ballantyne on the basis of such
valuation agreed upon, ISCO will only have to make any payment to Ballantyne if an understanding was reached on the valuation and the terms of payment for the excess inventory to be returned. Any such
payment to Ballantyne will only have to be made by ISCO in the amount of the agreed valuation of the excess inventory to be returned. All types of credits for the benefit of Ballantyne will also be
deemed payments within the meaning of the foregoing. The cost of shipping such items to ISCO shall be paid by Ballantyne. 

        10.    TERMINATION OF AGREEMENT. 

        A.    This
Agreement shall remain in effect for a period of sixty (60) months from the effective date hereof. 

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        B.    Either
party shall have the right to terminate this Agreement at the end of this sixty (60) month period without show of cause by notifying the other party of its
intention to so terminate this Agreement not less than twelve (12) months prior to the expiration date. 

        C.    In
order to maintain the exclusivity of this distributorship, Ballantyne agrees to a minimum dollar volume of purchases of One Million Dollars ($1,000,000) during each
year in which this Agreement is in effect, of which approximately one-fourth (1/4) shall be ordered during each quarterly period. To the extent feasible, orders will be
placed each month, and shipped within thirty (30) days, as provided in Paragraph 4.B. Ballantyne shall be given notice in writing by ISCO of any intention to terminate its exclusive
distributorship for failure to maintain this dollar volume of purchases, and Ballantyne shall have a minimum of forty-five (45) days in which to cure any such deficiency. 

        D.    This
Agreement shall be automatically renewed at the end of this sixty (60) month period, determined as set forth above, for a period of two years, and shall be
renewable for two-year periods thereafter unless either party notifies the other party, without show of cause, not less than twelve (12) months prior to the end of any such two year
period, of its intention not to renew this Agreement. 

        E.    This
Agreement may be terminated by either party if the other party becomes insolvent, makes a general assignment for the benefit of creditors, declares bankruptcy,
becomes subject to any proceeding in bankruptcy, receivership, or insolvency or is otherwise unwilling or unable to make shipments or fulfill its commitments under this Agreement, or commits a breach,
or nonobservance of any of the provisions hereof. 

        F.    Notice
of intent to terminate shall be given as provided in Article 13 hereof. The effective date of such notice shall be the date of receipt by the other party.
In the event of a justified termination for cause which ISCO is responsible for, or non renewal of this agreement by ISCO, Ballantyne shall have the right to return its remaining ISCO stock to ISCO
for full credit or refund at Ballantyne's option. 

        11.    CHANGE OF CONTROL. 

        A.    Irrespective
of its legal form Ballantyne shall give ISCO notice of all changes which might be of any importance for the continuation of this Agreement. Ballantyne shall
in particular give ISCO notice of (a) a change of shareholders, (b) the execution of a capital reduction and (c) the change of the firm name. The notice shall be in writing and
shall be sent the persons mentioned in Article 14 by registered mail. 

        B.    Within
four weeks following the receipt of the notice pursuant to Article 11A. ISCO is entitled to terminate this Agreement with immediate effect provided that the
notice informs ISCO of a change of shareholders. If Ballantyne does not comply with its obligation to notify pursuant to Article 11A., the right to terminate with immediate effect pursuant to
the immediately preceding sentence shall be unlimited in time. 

        12.    WARRANTY. 

        A.    ISCO
agrees and warrants that all articles, materials, and products supplied to Ballantyne or its customers will conform to the specifications, drawings, samples, or
other descriptions, including those contained in sales literature or technical bulletins, furnished or adopted by ISCO, except for intentional or negligent acts of third parties. 

        B.    All
products will be of good material and workmanship and free from defects and will be of merchantable quality and fit for the intended purpose. Such warranties by ISCO
shall run to the benefit of Ballantyne or its successors. ISCO further warrants that all articles delivered under this Agreement will be free from defect in design and manufacture. Ballantyne's
approval of designs furnished by ISCO shall not relieve ISCO of its obligations under this warranty. 

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        C.    Any
articles or materials not accepted or not in conformance with specifications or generally accepted practices or workmanship may be returned to ISCO, freight collect,
for replacement, repair, credit, or refund, depending on the damage or failure. Any item which has not been placed in use shall be replaced, or a credit or refund given. Any item which has not been
placed in use shall be replaced, or a credit or refund given. Any item which has been placed in use shall be replaced, or a credit or refund given. Any item which has been placed in use may be
repaired, but is to be put in new condition. This warranty shall be effective for a period of one (1) year following the date of receipt of the product by Ballantyne's customer. All expenses
for or arising from articles, products, or materials returned for breach of warranty hereunder shall be borne by ISCO, including expenses and penalties incurred by Ballantyne in recalling such items
which have been delivered, expenses of redelivery and damages payable as a result of nonconformance to specifications, or production or design deficiencies. 

        13.    GENERAL PROVISIONS. 

        A.    This
Agreement contains all of the understanding of the parties hereto, and, as of its effective date, supersedes any and all other agreements written or oral between
them. This Agreement is contingent upon the assignment to ISCO by ISCO-Optic GmbH of the agreement between ISCO-Optic GmbH and Ballantyne which was effective March 1,
1993, and upon such assignment, said agreement between ISCO-Optic GmbH and Ballantyne shall be deemed cancelled and of no further force and effect, and
the relationship of the parties hereto shall be governed solely by this Agreement. No waiver, modification, or amendment hereof shall be effective unless made in writing and executed by both parties
hereto. 

        B.    ISCO
shall defend and hold Ballantyne harmless from all claims or causes of action by any third party with reference to or in connection with the distributorship granted
herein, or the right of Ballantyne to market and distribute the products of ISCO. 

        C.    Each
party is an independent contractor in carrying out this Agreement and all personnel assigned by a party to this effort will be considered employees of the assigning
party and in no sense employees of the other party. It is understood and agreed that ISCO is in no sense the representative or agent of Ballantyne and has no right or authority to assume or to create
any obligation for Ballantyne or to bind Ballantyne in any respect whatsoever. Each party hereto agrees to hold the other harmless with respect to claims made by its own employees or employees of its
subcontractors, suppliers, or affiliates against the other party in connection with any operations carried out in accordance with this Agreement. 

        D.    This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors, or assignees. 

        E.    If
any covenant, agreement, term or provisions of this Agreement, as from time to time amended, or the application thereof to any situation or circumstance shall be
invalid or unenforceable, the remainder of this Agreement or the application of any covenant, agreement, term or provision not affected shall be valid and enforceable to the fullest extent permitted
by applicable law. 

        F.    This
Agreement shall be construed and interpreted in accordance with the UN Sales Convention (United Nations Convention on Contracts for the International Sale of Goods).
Any controversy that cannot be settled directly in practical and dignified negotiation shall be submitted to arbitration in Douglas County, Nebraska, by and in accordance with the rules of the
American Arbitration Association then prevailing and the Federal Arbitration Act, 9 U.S.C. §§ 1-16, and judgment upon the award by the arbitrator may be entered in
any court having jurisdiction thereof. 

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        14.    NOTICES. 

        All
notices regarding this Agreement shall be in writing, sent by certified mail, or delivered by a messenger who will obtain a receipt for delivery, directed to: 

        A.    In
the case of Optische Systeme Gottingen ISCO-Optic AG: 

Personlich/Vertraulich
  An die Mitglieder des Vorstandes

Anna-Vandenhoeck-Ring 5

37081 Gottingen

Germany 

        B.    In
the case of Ballantyne: 

PRESIDENT

Ballantyne of Omaha, Inc.

4350 McKinley

Omaha, Nebraska 68112

U.S.A. 

        In
confirmation hereof the parties hereto have caused this Agreement to be signed by a duly authorized individual or officer of the company, each certifying that he is empowered to act
on behalf of his company as of the month, day and year written below. 

	OPTISCHE SYSTEME GOTTINGEN

ISCO-OPTIC AG	 	BALLANTYNE OF OMAHA, INC.
	

By:	

/s/  CHRISTIAN LINDSTEDT      
	
 	

By:	

/s/  JOHN WILMERS      

	

 	

Christian Lindstedt
 Printed Name	
 	

 	

John Wilmers
 Printed Name
	

 	

Vorstand
 Title	
 	

 	

President & CEO
 Title
	

 	

/s/  S. FITZL      
	
 	

 	

 
	

 	

S. Fitzl
 Printed Name	
 	

 	

 
	

 	

Vorstand
 Title	
 	

 	

 
	

 	

06 August 02
 Date	
 	

 	

7-29-02
 Date

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Exhibits 4.16 and 10.25    
  

 
 

THIRD AMENDMENT TO RESTATED CREDIT AGREEMENT    
  

        THIS THIRD AMENDMENT TO RESTATED CREDIT AGREEMENT (hereinafter referred to as the "Amendment") executed as of the 30th day of September, 2002, by and between EXCO
RESOURCES, INC., a Texas corporation ("EXCO") and EXCO OPERATING, LP, a Delaware limited partnership ("Operating") (EXCO and Operating are hereinafter collectively referred to as "Borrowers"
and individually as a "Borrower") and BANK ONE, NA, a national banking association ("Bank One"), and each of the financial institutions which is a party thereto (as evidenced by the signature pages to
the Agreement) or which may from time to time become a party hereto pursuant to the provisions of Section 28 thereof or any successor or assignee thereof (hereinafter collectively referred to
as "Lenders", and individually, "Lender") and Bank One, as Administrative Agent (the "Agent") and BNP Paribas, as Syndication Agent, and The Bank of Nova Scotia, as Documentation Agent and Banc One
Capital Markets, Inc., as Lead Arranger and Bookrunner ("Arranger"). 

WITNESSETH:  

        WHEREAS, as of April 26, 2001, EXCO, as Borrower, the Lenders and the Agent entered into a Credit Agreement
pursuant to which the Lenders made available to the Borrowers certain credit facilities in the form therein described; and 

        WHEREAS, as of December 18, 2001, Borrowers, Lenders and Agent entered into a Restated Credit Agreement (the "Credit Agreement");
and 

        WHEREAS, as of April 26, 2002, Borrower, Lenders and Agent entered into an Amendment to Restated Credit Agreement (the "First
Amendment"); and 

        WHEREAS, as of June 24, 2002, Borrower, Lenders and Agent entered into a Second Amendment to Restated Credit Agreement (the "Second
Amendment"); and 

        WHEREAS, the Borrowers have requested that the Lenders agree to make certain additional amendments to the Credit Agreement and the
Lenders, together with certain additional financial institutions who shall become a party to the Credit Agreement at the Amendment Effective Date (as hereinafter defined), have agreed to do so on the
terms and conditions hereinafter set forth. 

        NOW, THEREFORE, the parties agree to amend the Credit Agreement as follows: 

        1.    Unless
otherwise defined herein all defined terms used herein shall have the same meaning as ascribed to such terms in the Credit Agreement. 

        2.    Section 1
of the Credit Agreement is hereby amended by the deletion of the definition of "Base Rate Margin" and the substitution of the following in lieu thereof: 

        "Base Rate Margin shall be: 

	(i)
	At
any time (ii) below does not apply:

	(a)
	three-quarters
of one percent (.75%) per annum whenever the Borrowing Base Usage is equal to or greater than 90%;

	(b)
	one-half
of one percent (.50%) per annum whenever the Borrowing Base Usage is equal to or greater than 70%, but less than 90%; or

	(c)
	one-quarter
of one percent (.25%) per annum whenever the Borrowing Base Usage is equal to or greater than 50% but less than 70%; or

	(d)
	zero
percent (0%) per annum whenever the Borrowing Base Usage is less than 50%; or 

 

	(ii)
	At
any time (A) that EXCO's ratio of (x) Consolidated Funded Debt to Consolidated EBITDA is less than 2.0 to 1.0 as of the most recent
fiscal quarter, and (y) Consolidated Debt to Consolidated Total Capital is less than .60 to 1.0 as of the most recent fiscal quarter, and (B) no Borrowing Base Deficiency exists:

	(a)
	one-half
of one percent (.50%) per annum whenever the Borrowing Base Usage is equal to or greater than 90%;

	(b)
	one-quarter
of one percent (.25%) per annum whenever the Borrowing Base Usage is equal to or greater than 70%, but less than 90%; or

	(c)
	zero
percent (0%) per annum whenever the Borrowing Base Usage is less than 70%." 

        3.    Section 13
of the Credit Agreement is hereby amended by deleting subsection 13(c) thereof and inserting the following in lieu thereof: 

        "(c)    Debt Coverage Ratio. The Borrowers will not allow EXCO's ratio of Consolidated Funded Debt to the sum of
(i) Consolidated EBITDA plus (ii) Pro-Forma Consolidated EBITDA to be greater than 3.0 to 1.0 as of the end of any fiscal quarter beginning with the fiscal quarter ending
September 30, 2002." 

        4.    Except
to the extent its provisions are specifically amended, modified or superseded by the First Amendment, the Second Amendment or this Amendment, the representations,
warranties and affirmative and negative covenants of the Borrowers contained in the Credit Agreement are incorporated herein by reference for all purposes as if copied herein in full. The Borrowers
hereby restate and reaffirm each and every term and provision of the Credit Agreement, as amended, including, without limitation, all representations, warranties and affirmative and negative
covenants. Except to the extent its provisions are specifically amended, modified or superseded by the First Amendment, the Second Amendment or this Amendment, the Credit Agreement, as amended, and
all
terms and provisions thereof shall remain in full force and effect, and the same in all respects are confirmed and approved by the Borrowers and the Lenders. 

        5.    This
Amendment shall be effective as of the date first above written, but only upon the satisfaction of the conditions precedent set forth in Paragraph 6 hereof. 

        6.    The
obligations of Lenders under this Amendment shall be subject to the following conditions precedent: 

        (a)  Execution and Delivery. The Borrowers shall have executed and delivered this Amendment, and other required documents, all
in form and substance satisfactory to the Agent; 

        (b)  Representations and Warranties. The representations and warranties of the Borrowers under this Amendment are true and
correct in all material respects as of such date, as if then made (except to the extent that such representations and warranties related solely to an earlier date); 

        (c)  No Event of Default. No Event of Default shall have occurred and be continuing nor shall any event have occurred or
failed to occur which, with the passage of time or service of notice, or both, would constitute an Event of Default; 

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

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        (e)  Legal Matters Satisfactory. All legal matters incident to the consummation of the transactions contemplated hereby shall
be reasonably satisfactory to special counsel for the Agent retained at the expense of Borrowers. 

        7.    Borrowers
hereby represent and warrant that all factual information heretofore and contemporaneously furnished by or on behalf of Borrowers to Agent for purposes of or in
connection with this Amendment does not contain any untrue statement of a material fact or omit to state any material fact necessary to keep the statements contained herein or therein from being
misleading. Each of the foregoing representations and warranties shall constitute a representation and warranty of Borrowers made under the Credit Agreement, and it shall be an Event of Default if any
such
representation and warranty shall prove to have been incorrect or false in any material respect at the time given. Each of the representations and warranties made under the Credit Agreement (including
those made herein) shall survive and not be waived by the execution and delivery of this Amendment or any investigation by Lenders. 

        8.    The
Borrowers agree to indemnify and hold harmless the Lenders and their respective officers, employees, agents, attorneys and representatives (singularly, an
"Indemnified Party", and collectively, the "Indemnified Parties") from and against any loss, cost, liability, damage or expense (including the reasonable fees and out-of-pocket
expenses of counsel to the Lender, including all local counsel hired by such counsel) ("Claim") incurred by the Lenders in investigating or preparing for, defending against, or providing evidence,
producing documents or taking any other action in respect of any commenced or threatened litigation, administrative proceeding or investigation under any federal securities law, federal or state
environmental law, or any other statute of any jurisdiction, or any regulation, or at common law or otherwise, which is alleged to arise out of or is based upon any acts, practices or omissions or
alleged acts, practices or omissions of the Borrowers or their agents or arises in connection with the duties, obligations or performance of the Indemnified Parties in negotiating, preparing,
executing, accepting, keeping, completing, countersigning, issuing, selling, delivering, releasing, assigning, handling, certifying, processing or receiving or taking any other action with respect to
the Loan Documents and all documents, items and materials contemplated thereby even if any of the foregoing arises out of an Indemnified Party's ordinary negligence. The indemnity set forth herein
shall be in addition to any other obligations or liabilities of the Borrowers to the Lenders hereunder or at common law or otherwise, and shall survive any termination of this Amendment, the
expiration of the Loan and the payment of all indebtedness of the Borrowers to the Lenders hereunder and under the Notes, provided that the Borrowers shall have no obligation under this section to the
Lenders with respect to any of the foregoing arising out of the gross negligence or willful misconduct of the Lenders. If any Claim is asserted against any Indemnified Party, the Indemnified Party
shall endeavor to notify the Borrowers of such Claim (but failure to do so shall not affect the indemnification herein made except to the extent of the actual harm caused by such failure). The
Indemnified Party shall have the right to employ, at the Borrowers' expense, counsel of the Indemnified Parties' choosing and to control the defense of the Claim. The Borrowers may at their own
expense also participate in the defense of any Claim. Each Indemnified Party may employ separate counsel in connection with any Claim to the extent such Indemnified Party believes it reasonably
prudent to protect such Indemnified Party. The parties intend for the provisions of this Section to apply to and protect each Indemnified Party from the consequences of strict
liability imposed or threatened to be imposed on any Indemnified Party as well as from the consequences of its own negligence, whether or not that negligence is the sole, contributing, or concurring
cause of any Claim.

        9.    This
Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

        10.  WRITTEN CREDIT AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THE FIRST AMENDMENT, THE SECOND AMENDMENT OR THIS AMENDMENT
REPRESENTS THE FINAL AGREEMENT BETWEEN AND AMONG THE PARTIES AND MAY 

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NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN AND AMONG THE PARTIES. 

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

	

 	
 	
BORROWERS:
	

 	
 	

EXCO RESOURCES, INC.
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      
 J. Douglas Ramsey, Vice President

and Chief Financial Officer

	 	EXCO OPERATING, LP

a Delaware limited partnership
	

 	

By:        EXCO Investment II, LLC,

              its General Partner

	 	 	 	 	By:	/s/  T. W. EUBANK      
 T.W. Eubank, President

4

 

	

 	
 	
LENDERS:
	

 	
 	

BANK ONE, NA

a national banking association

(Main Office Chicago)

as a Lender and as Administrative Agent
	

 	
 	

By:	

/s/  WM. MARK CRANMER      
 Wm. Mark Cranmer, Director

Capital Markets

5

 

	

 	
 	
BNP PARIBAS
 as a Lender and as Syndication Agent
	

 	
 	

By:	

/s/  DAVID DODD      

	 	 	Name:	David Dodd

	 	 	Title:	Director

	

 	
 	

By:	

/s/  BETSY JOCHER      

	 	 	Name:	Betsy Jocher

	 	 	Title:	Vice President

6

 

	

 	
 	
THE BANK OF NOVA SCOTIA
 as a Lender and as Documentation Agent
	

 	
 	

By:	

/s/  N. BELL      

	 	 	Name:	N. Bell

	 	 	Title:	Senior Manager

7

 

	

 	
 	
COMERICA BANK-TEXAS
	

 	
 	

By:	

/s/  MICHELE L. JONES      

	 	 	Name:	Michele L. Jones

	 	 	Title:	Vice President

8

 

	

 	
 	
FLEET NATIONAL BANK
	

 	
 	

By:	

/s/  JEFFREY RATHKAMP      

	 	 	Name:	Jeffrey Rathkamp

	 	 	Title:	Vice President

9

 

	

 	
 	
TORONTO DOMINION (TEXAS), INC.
	

 	
 	

By:	

/s/  ANN S. SLANIS      

	 	 	Name:	Ann S. Slanis

	 	 	Title:	Vice President

10

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Exhibits 4.16 and 10.25

THIRD AMENDMENT TO RESTATED CREDIT AGREEMENT

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