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Exhibit 10.10    
    

 
 

Unconditional Guaranty Agreement

        This
Unconditional Guaranty Agreement (this "Agreement") is entered into as of December 9, 2003 by and between EXCO Resources, Inc., a Texas Corporation ("EXCO"), and n.v.
Nuon, a Dutch company with limited liability ("Nuon"). EXCO and Nuon are hereinafter sometimes referred to individually as a "Party" and jointly as the "Parties." 

        WHEREAS,
on November 26, 2003, EXCO, Nuon Energy & Water Investments, Inc., a Delaware corporation and an indirect subsidiary of Nuon ("Seller"), NCE
Acquisition Inc., a Delaware corporation and subsidiary of EXCO ("Purchaser"), and North Coast Energy, Inc., a Delaware corporation (the "Company"), entered into the Agreement and Plan
of Merger, as amended and restated on December 4, 2003 (the "Merger Agreement"), pursuant to which Purchaser agreed to commence a tender offer to purchase all the issued and outstanding shares
of common stock, par value $.01 per share of the Company, at a price equal to the Per Share Amount (as defined in the Merger Agreement); 

        WHEREAS,
Seller has agreed to deliver to the Company and EXCO an executed Tender Agreement and an executed Escrow Agreement as set forth in the Merger Agreement; 

        WHEREAS,
Seller, Purchaser and EXCO have agreed to undertake the indemnity and the other obligations set forth in the Merger Agreement; 

        WHEREAS,
in connection with EXCO, Purchaser, the Company and Seller entering into the Merger Agreement and to induce EXCO and Purchaser to enter into the Merger Agreement, Nuon has
agreed to unconditionally guaranty Seller's performance of its obligations, including but not limited to Seller's indemnity obligations set forth in the Merger Agreement; 

        WHEREAS
Nuon signs this Agreement for the purpose of (i) representing that it is the indirect owner of Seller, (ii) making the agreements set forth herein and
(iii) acknowledging that Nuon will as an indirect owner of Seller benefit from this Agreement as consideration for its agreements herein; 

        and

        NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants set forth herein, EXCO and Nuon agree as follows: 

	1.
	Unconditional Guaranty. Nuon hereby unconditionally and irrevocably guarantees the performance of all of the obligations of Seller under
the Merger Agreement, the Escrow Agreement and the Tender Agreement (collectively, the "Transaction Documents") including but not limited to, the prompt payment obligations of Seller. In the event
that any obligation of Seller under a Transaction Document is not paid or performed by Seller in whole then Nuon shall be liable for the immediate performance of such obligation, and 10 days
following the delivery of notice to Nuon of Seller's failure, EXCO or Purchaser may proceed directly against Nuon pursuant to this guaranty. Nuon agrees that this guaranty is a guaranty of payment and
performance and not of collection, and that Nuon's obligations under this guaranty shall be absolute and unconditional.

	2.
	Representations and Warranties. Nuon hereby represents and warrants to EXCO and Purchaser as follows: 

(a)
Nuon is a Dutch company with limited liability duly organized, validly existing and in good standing under the laws of the Netherlands. Nuon has all requisite corporate power and authority to
enter into this Guaranty Agreement, and all other documents and instruments to be executed and delivered by it in connection herewith, and to carry out its obligations hereunder and thereunder. 

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(b)
The execution and delivery of this Agreement and the due consummation by Nuon of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on the
part of Nuon and no other proceeding on the part of Nuon is necessary to authorize this Agreement or consummate the transactions contemplated hereby, and this Agreement constitutes, and
when executed and delivered in accordance with the provisions hereof, will constitute a valid and legally binding agreement of Nuon enforceable in accordance with its terms. 

(c)
None of the execution and delivery of this Agreement by Nuon, the consummation by Nuon of the transactions contemplated hereby or compliance by Nuon with any of the provisions hereof will
(i) conflict with or violate the organizational documents of Nuon, (ii) conflict with or violate any Law applicable to Nuon or by which any property or asset of Nuon is bound or
affected, (iii) conflict with or violate any License applicable to Nuon, or (iv) result in a violation or breach of or constitute a default (or an event which with notice or lapse of
time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in any loss of any benefit, or the creation of any Lien
or other encumbrance on any of the properties or assets of Nuon or any of its subsidiaries pursuant to any material contract to which Nuon or any of its subsidiaries is a party. 

(d)
None of the execution and delivery of this Agreement by Nuon, the consummation by Nuon of the transactions contemplated hereby, or compliance by Nuon with any of the provisions hereof, will
require any Consent, except for (a) compliance with any applicable requirements of the Exchange Act, (b) the filing of the Certificate of Merger pursuant to the Delaware Law, or
(c) such filings, authorizations, orders and approvals which would not prevent or delay the consummation of the Offer or the Merger, or otherwise prevent or delay Nuon from performing its
obligations under this Agreement. 

	3.
	Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of all the
Parties.

	4.
	Extension, Waiver. The Parties may extend the time for the performance of any of the obligations or waive
compliance with any of the agreements or conditions in this Agreement. Any agreement to any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the Parties. 

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	5.
	Notices. All notices and other communications required or permitted hereunder shall be in writing and delivered
pursuant to Section 9.2 of the Merger Agreement provided that: 

	If to EXCO, to:	 	EXCO Resources, Inc.

6500 Greenville Ave., Suite 600

Dallas, TX 75206

Attn: Douglas H. Miller

Fax No.: 214-368-2087
	

With a copy to:	
 	

Haynes and Boone, LLP

2505 N. Plano Road, Suite 4000

Richardson, TX 75082

Attn: William L. Boeing

Fax No.: 972-692-9053
	

If to Nuon, to:	
 	

 
	 	

n.v. Nuon

Spaklerweg 20

1096 BA Amsterdam

The Netherlands

Attn: Chief Executive Officer

Fax. No.: 011-31-20-597-4333
	

With a copy to:	
 	

 
	 	

Fried, Frank, Harris, Shriver & Jacobson

1001 Pennsylvania Avenue, NW

Suite 800

Washington, D.C. 20004

Attn: Lawrence R. Bard

Fax No.: 202-639-7003

	6.
	Binding Effect. Except as otherwise provided in this Agreement, this Agreement shall be binding and inure to the
benefit of the Parties and their respective successors and permitted assigns. Except as otherwise provided in this Agreement, nothing in this Agreement is intended or shall be construed to confer on
any person other than the Parties hereto any rights or benefits hereunder.

	7.
	Headings. The headings in this Agreement are intended solely for convenience of reference and shall be given no
effect in the construction or interpretation of this Agreement.

	8.
	Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same document.

	9.
	Governing Law. This Agreement, including all matters of construction, validity and performance, shall be
governed by and construed and enforced in accordance with the laws of the State of Delaware, as applied to contracts made, executed and to be fully performed in such state by citizens of such state,
without regard to conflict of laws principles. Each of the parties hereto (i) consents to submit itself to the personal jurisdiction of any federal court located in the State of Delaware or any
Delaware state court in the event any dispute arises out of this Agreement, (ii) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for
leave from any such court and (iii) agrees that it shall not bring any action relating to this Agreement in any court other than a federal or state court sitting in the State of Delaware. 

Nuon
hereby irrevocably submit to the jurisdiction of the United States District Court for Delaware or any court of the State of Delaware located in the County of New Castle in any 

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such
action, suit or proceeding, and agree that any such action, suit or proceeding shall be brought only in such court (and waive any objection based on forum non
conveniens or any other objection to venue therein); provided, however, that such consent to jurisdiction shall not be deemed to be a general submission to the jurisdiction of
said courts or in the State of Delaware other than in connection with this Agreement. In order to effectuate such submission to jurisdiction, Nuon hereby agrees that service of all writs, process and
summonses in any suit, action or proceeding brought in the State of Delaware may be brought upon the process agent appointed below. Nuon hereby irrevocably appoints Corporation Service Company process
agent, as its true and lawful attorney-in-fact in the name, place and stead of Nuon to accept such service of any and all such writs, process and summonses, and Nuon agrees
that the failure of such process agent to notify Nuon of the service of such writ, process or summons shall not impair the validity of such service or any judgment based thereon. 

	10.
	Pronouns. The use of a particular pronoun herein shall not be restrictive as to gender or number but shall be
interpreted in all cases as the context may require.

	11.
	Time Periods. Unless otherwise provided herein, any action required hereunder to be taken within a certain
number of days shall be taken within that number of calendar days; provided, however, that if the last day for taking such action falls on a weekend or a holiday, the period during which such action
may be taken shall be automatically extended to the next business day.

	12.
	No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the
Parties hereto to express their mutual intent, and no rule of strict construction will be applied against any Party.

	13.
	Severability. Whenever possible, each provision in this Agreement will be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of this Agreement.

	14.
	Treatment of Indemnity Payments. Exco and Nuon, and their respective affiliates shall, to the extent permitted
by applicable law, treat any payments made pursuant to Section 1 as adjustments to the aggregate price paid by the Purchaser for any shares of Common Stock (as defined in the Merger Agreement)
tendered in the Offer (as defined in the Merger Agreement).

	15.
	Entire Agreement. This Agreement and the agreements and documents referred to in this Agreement or delivered
hereunder are the exclusive statement of the agreement between the Parties concerning the subject matter hereof. All negotiations between the Parties are merged into this Agreement, and there are no
representations, warranties, covenants, understandings, or agreements, oral or otherwise, in relation thereto among the Parties other than those incorporated herein and to be delivered hereunder.

	16.
	Termination. Each obligation of Nuon under this Agreement terminates concurrently with the termination of the
related obligation of Seller in the Merger Agreement. This Agreement, and all rights and obligations of the Parties hereunder, shall be terminated immediately upon the termination of the Merger
Agreement in accordance with its terms. Nothing contained in this Section 16 shall relieve any Party from liability for any breach of this Agreement.

	17.
	Defined Terms. Capitalized terms used herein but not otherwise defined herein shall have the meanings set forth
in the Merger Agreement.

	18.
	Survival. All representations, warranties and agreements made herein shall survive the execution and delivery of this Agreement and
shall survive for as long as the obligations of Seller survive under the Transaction Documents, and all other documents and instruments to be executed and 

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delivered
in accordance herewith shall continue in full force and effect until the terms and conditions therein have been fulfilled. 

*            *            * 

        IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written by their respective officers thereunto duly authorized. 

	 	 	EXCO RESOURCES, INC.
	

 	
 	

By:	

/s/  T. W. EUBANK      
 Name: T.W. Eubank

Title: President
	

 	
 	

n.v. NUON
	

 	
 	

By:	

/s/  LUDO HALDEREN      
 Name: Ludo Halderen

Title: Chief Executive Officer

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QuickLinks

Exhibit 10.10

Unconditional Guaranty AgreementQuickLinks
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Exhibit 10.12    
    

 
  EXECUTION COPY    
    

 
 

PLEDGE AGREEMENT FOR STOCK    
    

        This PLEDGE AGREEMENT FOR STOCK ("Pledge Agreement"), entered into as of the 27th day of January, 2004, by and
between NORTH COAST ENERGY, INC., a Delaware corporation (the "Pledgor") and BANK ONE, NA,  CANADA BRANCH in its capacity as agent (the "Agent" or "Secured Party") for the Lenders under the Credit Agreement referred to below. 

W
I T N E S S E T H: 

WHEREAS, ADDISON ENERGY INC., an Alberta, Canada corporation ("Borrower"), Agent and certain lenders from time to time party thereto, are parties
to that certain Second Amended and Restated Credit Agreement dated as of July 29, 2003, pursuant to which the lenders agreed to provide Borrower with certain credit facilities in the form
described therein (as amended, the "Original Credit Agreement"); 

        WHEREAS, Borrower has requested that the lenders and Agent agree to make certain changes to the Original Credit Agreement and has
requested that the Original Credit Agreement and the schedules thereto be amended and restated in their entirety; 

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

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

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

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

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

        (a)   all
now owned or existing or hereafter acquired or arising issued and outstanding Capital Stock of North Coast Eastern Energy, Inc., a Delaware corporation
("North Coast Eastern"); and 

        (b)   all
now owned or existing or hereafter acquired or arising issued and outstanding partnership interests of Capital Drilling Fund 1986-1 Partnership, North
Coast Energy 1996-1 Appalachian Private Drilling Program, North Coast Energy 1996-2 Appalachian Private Drilling Program, North Coast Energy 1997-2 Appalachian
Private Drilling Program, North Coast Energy 1998-1 Appalachian Private Drilling Program, North Coast Energy 1999-1 Appalachian Private Drilling Program, North Coast Energy
2000-1 Appalachian Private Drilling Program, North Coast Energy 2001-1 Private Development Drilling Program Limited Partnership, North Coast Energy 2001-2
Appalachian Private Drilling Program LP (collectively, the "Partnerships"); 

 

(North
Coast Eastern and the Partnerships are hereinafter referred to as the "Issuers" and each individually, the "Issuer" and each of the securities listed hereinabove in items (a) and
(b) are hereinafter called the "Pledged Securities"); 

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

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

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

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

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

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

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

        (d)   Rate Management Transactions. Payment of any and all obligations, contingent or otherwise, whether now existing or
hereafter arising, of Pledgor, Borrower or any Subsidiary Guarantor to the Lenders or to any of their Affiliates or successors arising under or in connection with Rate Management Transactions (as
hereinafter defined). For the purposes hereof, the term "Rate Management Transactions" means any transactions (including an agreement with respect thereto) now existing or hereafter entered into among
Pledgor, Borrower or any Subsidiary Guarantor with any Lender or any Affiliate or successor to any Lender, which is a rate swap, basic swap, forward rate transaction, commodity swap, commodity option,
equity or equity index swap, equity or equity index option, bond option, interest rate option, forward exchange transaction, cap transaction, collar transaction, forward transaction, currency swap
transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions) or any combination thereof, whether
linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures. 

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

        (a)   The
Pledgor is the legal and equitable owner of the Collateral, has the necessary corporate authority to pledge the Collateral being pledged by it and holds the same
free and clear of all liens, charges, encumbrances and security interests of every kind and nature; the Pledgor has good right and legal authority to pledge the Collateral being pledged by it in the
manner hereby 

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done
or contemplated and will defend its title thereto against the claims of all persons whomsoever. 

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

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

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

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

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

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

        (d)   Secured
Party shall give Pledgor ten (10) days' written notice of Secured Party's intention to make any such public or private sale. Such notice, in case of
public sale, shall state the time and place for such sale, and, in the case of private sale, the day on which the Collateral, or any portion thereof, will first be offered for sale. Any such public
sale shall be held at such time or times within the ordinary business hours and at such place or places as Secured Party may fix and shall state in the notice of such sale. At any sale, the
Collateral, or any portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as Secured Party may (in its sole and absolute discretion) determine. Secured Party shall
not be obligated to make any sale of Collateral if it shall determine not to do so, regardless of the fact that notice of sale of Collateral may have been given. Secured Party may, without notice or
publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be
made at the time and place to which the same was so adjourned. In the event a sale of all or any part of the Collateral is made on credit or 

3

 

for
future delivery, the Collateral so sold may be retained by Secured Party until the sale price is paid by the purchaser or purchasers thereof, but Secured Party shall not incur any liability in
case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like notice. As an alternative
to exercising the power of sale herein conferred upon it, Secured Party may proceed by a suit or suits at law or in equity to foreclose under this Pledge Agreement and to sell the Collateral, or any
portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction. 

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

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

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

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

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

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

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

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

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

        Section 7.
Reimbursement of Secured Party. The Pledgor hereby agrees to reimburse Secured Party on demand for all expenses incurred
by it in connection with the administration and enforcement of this Pledge Agreement, and agrees to indemnify Secured Party and hold it harmless from and against 

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any
and all liability incurred by it hereunder or in connection herewith unless caused by the gross negligence or willful misconduct of Secured Party or any of the Lenders or of its or their
employees, agents or representatives. 

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

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

        Section 10.
Voting Rights, Dividends, Etc.

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

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

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

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

        (a)   Pledgor
hereby transfers the Pledged Securities to Secured Party with proper instruments of assignment duly executed. The Pledgor covenants that it will cause any
additional securities issued to or received by the Pledgor with respect to any of the Collateral, whether for value paid 

5

 

by
the Pledgor or otherwise, to be forthwith deposited and pledged hereunder, in each case accompanied by proper instruments of assignment duly executed in blank by Pledgor. 

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

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

        Section 13.
Binding Agreement, Assignment. This Pledge Agreement, and the terms, covenants and conditions hereof, shall be binding
upon and inure to the benefit of the parties hereto and to all holders of indebtedness secured hereby and their respective successors and assigns, except that Pledgor shall not be permitted to assign
this Pledge Agreement or any interest herein or in the Collateral, or any part thereof, or otherwise pledge, encumber or grant any option with respect to the Collateral, or any part thereof, or any
cash or property held by Secured Party as Collateral under this Pledge Agreement. 

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

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

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

6

 

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

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

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

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

7

 

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

	 	 	NORTH COAST ENERGY, INC.

a Delaware corporation
	

 	
 	

By:	

/s/  J. DOUGLAS RAMSEY      

	 	 	Name: J. Douglas Ramsey

Title: Vice President

	

 	
 	

North Coast Energy, Inc.

c/o EXCO Resources, Inc.

12377 Merit Drive, Suite 1700

Dallas, Texas 75251
	 	 	 	Attention:	Douglas H. Miller

Chief Executive Officer
	 	 	 	Attention:	J. Douglas Ramsey

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

8

 

	

 	
 	
AGENT:
	

 	
 	
BANK ONE, CANADA, NA

a national banking association

as a Lender and as Administrative Agent
	

 	
 	

By:	

/s/  WM. MARK CRANMER      

	 	 	Name: Wm. Mark Cranmer

Title: Director, Capital Markets

	

 	
 	

Bank One, NA, Canada Branch

BCE Place

161 Bay Street, Suite 4240

Toronto, Ontario, Canada M5J 2S1

Facsimile (416) 363-7574

Attention: Michael Tam
	

 	
 	

With a copy to:
	

 	
 	

Bank One, NA

Mail Code IL1-0634

1 Bank One Plaza

Chicago, Illinois 60670-0634

Facsimile No.: 312-732-4840

Attention: Jim Moore
	

 	
 	

Bank One, NA

1717 Main Street

Mail Code TX1-2448

Dallas, Texas 75201

Facsimile No.: 214-290-2332

Attention: Wm. Mark Cranmer

                  Director, Capital Markets

9

QuickLinks

Exhibit 10.12

EXECUTION COPY

PLEDGE AGREEMENT FOR STOCK

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