Guaranty, dated May 9, 2010, by BG Energy Holdings Limited



 Exhibit 10.9 

Execution Version 

GUARANTY 

THIS GUARANTY (this “Guaranty”) is made as of the 9th day of May, 2010 by BG Energy Holdings Limited, a company
incorporated under the Laws of England and Wales (the “Guarantor”), in favor of EXCO Holding (PA), Inc., a corporation incorporated under the Laws of Delaware (“EXCO Holding”), EXCO Production Company
(PA), LLC, a limited liability company incorporated under the Laws of Delaware (“EXCO PA”), and EXCO Production Company (WV), LLC, a limited liability company incorporated under the Laws of Delaware (“EXCO
WV” and, together with EXCO Holding and EXCO PA, “EXCO”). Guarantor and EXCO Holding are referred to herein individually as a “Party” and collectively as the
“Parties”. 
 RECITALS 

WHEREAS, EXCO Holding and BG US Production Company, LLC, a limited liability company incorporated under the Laws of Delaware
(“BGPC”), and certain of their Affiliates desire to enter into an arrangement for the joint exploration, development and operation of certain oil and gas properties located in the states of Kentucky, New York, Ohio,
Pennsylvania, Tennessee, Virginia and West Virginia, and in connection therewith, EXCO and BGPC have entered into a Membership Interest Transfer Agreement dated of even date herewith (as hereafter amended, supplemented or modified, the
“MITA”) and, upon the consummation of the transactions contemplated by the MITA, BG Production Company (PA), LLC, a limited liability company incorporated under the Laws of Delaware (“BG PA”),
BG Production Company (WV), LLC, a limited liability company incorporated under the Laws of Delaware (“BG WV”), EXCO PA, EXCO WV and EXCO Resources (PA), LLC, a limited liability company incorporated under the Laws of
Delaware (“Operator LLC”) shall enter into a Joint Development Agreement (as hereafter amended, supplemented or modified, the “JDA” and, together with the MITA, the “Definitive
Agreements”); and 
 WHEREAS, as a material inducement to EXCO to enter into the Definitive Agreements with BGPC,
BG PA and BG WV, Guarantor has agreed to provide a guaranty of certain obligations of BGPC, BG PA and BG WV under the Definitive Agreements. 

AGREEMENT 

NOW, THEREFORE, for and in consideration of the mutual promises contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and confessed, the Parties hereby agree as follows: 

Section 1. Guaranty of Payment. Guarantor hereby absolutely, unconditionally and irrevocably guarantees to EXCO and
its successors, permitted transferees and permitted assigns the punctual and complete payment when due of all payment obligations of BGPC, or any of its Affiliates (collectively, the “Subject Persons”) under the MITA
(collectively, the “MITA Obligations”), and the carry obligation of BG PA and BG WV described in Section 2.2 of the JDA (the “Carry Obligation”, and together with the MITA Obligations, and any
increases, extensions, or rearrangements of such obligations, collectively, the “Guaranteed Obligations”). The guaranty set forth in this Section 1 is a continuing guaranty of payment and not a guaranty of
collection. 







 Section 2. Primary Liability of Guarantor. Guarantor shall be liable for
the payment of the Guaranteed Obligations, as set forth in this Guaranty, as a primary obligor, and not as a mere surety. 
 In
the event of default by any Subject Person in payment of the Guaranteed Obligations, or any part thereof, when such payment becomes due, Guarantor shall, on demand and without further notice of nonpayment, or any other notice whatsoever, pay the
amount due thereon to EXCO, and it shall not be necessary for EXCO, in order to enforce such payment by Guarantor, to institute any suit or pursue or exhaust any rights or remedies against any Subject Person or others liable for such payment, or to
join any Subject Person for the payment of the Guaranteed Obligations or any part thereof in any action to enforce this Guaranty, or to resort to any other means of obtaining payment of the Guaranteed Obligations. 

Suit may be brought or demand may be made against any Subject Person or Guarantor or against any one or more of them, separately or
together, without impairing the rights of EXCO against either. 
 Section 3. Certain Agreements and Waivers by
Guarantor. Guarantor hereby agrees that EXCO’s rights or remedies and all of Guarantor’s obligations under the terms of this Guaranty shall remain in full force and effect and shall not be released, diminished, impaired, reduced or
affected by, or deemed to be satisfied by, nor shall Guarantor be exonerated, discharged or released (by virtue of any Law, arrangement or relationship) by, any one or more of the following events, actions, facts, or circumstances, and the liability
of Guarantor under this Guaranty shall be absolute and unconditional irrespective of: 
  

	 	(a)	the taking or accepting of any other security or guaranty for, or right of recourse with respect to, any or all of the Guaranteed Obligations; 


 

	 	(b)	whether express or by operation of any Law or otherwise, any complete or partial release of any Subject Person or any other party liable, directly or indirectly, for
the payment of any or all of the Guaranteed Obligations, or any limitation, discharge, cessation or partial release of the liability of Guarantor hereunder (other than discharge or release under the express provisions of this Guarantee, including by
virtue of satisfaction of Guaranteed Obligations, under the express terms of the MITA and JDA, or by agreement of EXCO); 

  

	 	(c)	the bankruptcy, insolvency, dissolution, liquidation, termination, receivership, reorganization, merger, consolidation, change of form, structure or ownership, sale of
all assets, or lack of corporate, partnership or other power of any Subject Person or any other party at any time liable for the payment of any or all of the Guaranteed Obligations; 


 

	 	(d)	 either with or without notice to or consent of Guarantor, any renewal, extension, modification, amendment, supplement, subordination or rearrangement
of the terms of any or all of the Guaranteed Obligations, including material alterations of the terms of payment or any other terms thereof, or any waiver, termination, or release of, or consent to departure from, the Definitive Agreements or any



  

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adjustment, indulgence, forbearance, or compromise that may be granted from time to time by EXCO to any Subject Person, Guarantor, and/or any other Person at any time liable for the payment of
any or all of the Guaranteed Obligations; 

  

	 	(e)	any neglect, lack of diligence, delay, omission, failure, or refusal of EXCO to take or prosecute (or in taking or prosecuting) any action for the collection of any of
the Guaranteed Obligations; 

  

	 	(f)	if for any reason EXCO is required to refund any payment by any Subject Person or any other party liable for the payment of any or all of the Guaranteed Obligations or
pay the amount thereof to someone else; 

  

	 	(g)	the existence of any claim, set-off, or other right that Guarantor may at any time have against any Subject Person, EXCO, or any other Person, whether or not arising in
connection with this Guaranty or any of the Definitive Agreements; 

  

	 	(h)	any order, ruling or plan of reorganization emanating from proceedings under Title 11 of the United States Code with respect to any Subject Person or any other Person,
including any extension, reduction, composition, or other alteration of the Guaranteed Obligations, whether or not consented to by EXCO; 

  

	 	(i)	any absence of any notice to, or knowledge by, Guarantor, of the existence or occurrence of any of the matters or events set forth in the foregoing subsections
(a) through (h); 

  

	 	(j)	the failure to provide any notices or demands, whether of presentment, protest, dishonor or otherwise, other than (i) any notices and demands expressly set forth
herein, and (ii) such notices or demands as may be required by applicable Law which cannot be waived; or 

  

	 	(k)	any other circumstance that might otherwise constitute a defense available to, or a discharge of, a guarantor (except discharge or defenses under the express provisions
of this Guarantee, including by virtue of satisfaction of Guaranteed Obligations, under the express terms of the MITA and JDA, or by other agreement of EXCO). 


In the event any payment by any Subject Person or any other Person to EXCO in respect of the Guaranteed Obligations is held to constitute
a preference, fraudulent transfer or other voidable payment under any bankruptcy, insolvency or similar Law, or if for any other reason, EXCO is required to refund such payment or pay the amount thereof to any other party, such payment by such
Subject Person or such other Person to EXCO shall not constitute a release of Guarantor from any liability hereunder, and this Guaranty shall continue to be effective or shall be reinstated (notwithstanding any prior release, surrender or discharge
by EXCO of this Guaranty or of Guarantor), as the case may be, with respect to, and this Guaranty shall apply to, any and all amounts so refunded by EXCO or paid by EXCO to another Person (which amounts shall constitute part of the Guaranteed
Obligations), and any interest paid by EXCO and any attorneys’ fees, costs and expenses paid or incurred by EXCO in connection with any such event. 
  

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 In addition to the other matters set forth in this Section 3, until all
Guaranteed Obligations have been paid in full, Guarantor hereby agrees not to assert any claim of subrogation with respect to the Guaranteed Obligations, or any right of contribution, reimbursement, indemnification or other rights of recovery
against the Subject Persons in respect of the Guaranteed Obligations, provided that nothing herein shall prevent transfers of funds between the Subject Persons and Guarantor in the ordinary course of business. If any amount shall be paid to
Guarantor in violation of the preceding sentence, such amount shall be held in trust for the benefit of EXCO and immediately turned over to EXCO, with any necessary endorsement, to be applied to the Guaranteed Obligations. 

Guarantor agrees that, as between Guarantor and EXCO as of any time, the Guaranteed Obligations accrued as of such time may be declared
to be forthwith due and payable for purposes of Section 1 notwithstanding any stay, injunction or other prohibition preventing such declaration as against any Subject Person and that, in the event of such declaration, such Guaranteed
Obligations (whether or not due and payable by Subject Person) shall forthwith become due and payable by Guarantor for purposes of Section 1. 

Each failure by any Subject Person to pay any Guaranteed Obligations shall give rise to a separate cause of action herewith, and separate
suits may be brought hereunder as each cause of action arises. 
 Section 4. Representations and Warranties of
Guarantor. Guarantor represents and warrants to EXCO as follows: 
  

	 	(a)	Organization. Guarantor is a company incorporated under the Laws of England and Wales and has all requisite corporate power and authority to carry on its
business as is now being conducted except for such failures which would not, individually or in the aggregate, have a material adverse effect on the ability of Guarantor to discharge its obligations under this Guaranty (a “Guarantor
Material Adverse Effect”). 

  

	 	(b)	Authority Relative to this Guaranty. Guarantor has all necessary corporate power and authority to execute and deliver this Guaranty and to perform its
obligations hereunder. The execution and delivery by Guarantor of this Guaranty and performance by Guarantor of its obligations hereunder have been duly and validly authorized by all necessary corporate action on the part of Guarantor.


  

	 	(c)	Enforceability. This Guaranty constitutes a valid and binding agreement of Guarantor, enforceable against Guarantor in accordance with its terms, subject to
(i) applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws of general application with respect to creditors and (ii) general principles of equity. 


 

	 	(d)	Consents and Approvals; No Violation. 


(i) Neither the execution and delivery of this Guaranty by Guarantor nor performance by Guarantor of its obligations
hereunder will (A) conflict with or result in any breach of any provision of the organizational or governing 
  

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documents or instruments of Guarantor, (B) result in a default (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, agreement, lease or other instrument or obligation to which Guarantor or any of its Affiliates is party or by which any of their respective assets may be bound or (C) violate any Law applicable to
Guarantor, or any of its assets, except in case of clauses (B) and (C), for such failure to obtain a necessary consent, defaults and violations, which would not, individually or in the aggregate, have a Guarantor Material Adverse Effect.


 (ii) No declaration, filing or registration with, or notice to, or authorization, consent or
approval of any Person or Governmental Authority is necessary for performance by Guarantor of its obligations hereunder, other than such declarations, filings, registrations, notices, authorizations, consents or approvals which, if not obtained or
made would not, individually or in the aggregate, have a Guarantor Material Adverse Effect. 
  

	 	(e)	Taxes. Any payments made under this Guaranty by Parent to any Subject Person shall not be subject to any deduction or withholding whatsoever, including for any
and all present and future taxes. 

 Section 5. Assignment. This Guaranty may not be assigned
by any Party, EXCO PA or EXCO WV, in whole or in part, without the prior written consent of the Parties, EXCO PA and EXCO WV. 

Section 6. Notices. All notices and communications required or permitted to be given hereunder shall be in writing and
shall be delivered personally, or sent by bonded overnight courier, or mailed by U.S. Express Mail or by certified or registered United States Mail with all postage fully prepaid, or sent by telex or facsimile transmission (provided any such telex
or facsimile transmission is confirmed either orally or by written confirmation), addressed to the appropriate Party, EXCO PA or EXCO WV at the address for such Person shown below or at such other address as such Person shall have theretofore
designated by written notice delivered to the Person giving such notice: 
 If to Guarantor: 

BG Energy Holdings Limited 

100 Thames Valley Park Drive 

Reading 

Berkshire, RG6 1PT 

England 

Attention: General Counsel 

Telephone: 011 44 (0) 118 929 2590 

Fax: 011 44 (0) 118 929 3491 
  

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 With a copy to: 

BG North America, LLC 

5444 Westheimer, Suite 1775 

Houston, Texas 77056 

Attention: Chris Migura 

Telephone: (713) 599-3826 

Fax: (713) 599-4250 

With a copy to: 

Morgan, Lewis & Bockius LLP 

1000 Louisiana Street, Suite 4000 

Houston, Texas 77002 

Attention: David F. Asmus 

Telephone: (713) 890-5718 

Fax: (713) 599-4250 

If to EXCO: 

EXCO Holding (PA), Inc. 

12377 Merit Drive, Suite 1700 

Dallas, Texas 75251 

Attention: Rick Hodges, Vice President of Land 

Telephone: (214) 368-2084 

Fax: (214) 706-3424 

With a copy to: 

EXCO Resources, Inc. 

12377 Merit Drive, Suite 1700 

Dallas, Texas 75251 

Attention: William L. Boeing, Vice President, General Counsel, 

and Secretary 

Telephone: (214) 368-2084 

Fax: (214) 706-3409 

With a copy to: 

Vinson & Elkins L.L.P. 

1001 Fannin Street, Suite 2500 

Houston, Texas 77002-6760 

Attention: Stephen C. Szalkowski 

Telephone: (713) 758-2312 

Fax: (713) 615-5084 
  

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 Any notice given in accordance herewith shall be deemed to have been given when delivered to the addressee
in person, or by courier, or transmitted by facsimile transmission during normal business hours, or upon actual receipt by the addressee after such notice has either been delivered to an overnight courier or deposited in the United States Mail, as
the case may be. EXCO and Guarantor may change the address, telephone numbers, and facsimile numbers to which such communications are to be addressed by giving written notice to the Parties, EXCO PA and EXCO WV in the manner provided in this
Section 6. 
 Section 7. Further Cooperation. Guarantor at Guarantor’s expense will promptly
execute and deliver to EXCO upon EXCO’s request all such other and further documents, agreements, and instruments in compliance with or accomplishment of the agreements of Guarantor under this Guaranty. 

Section 8. Entire Agreement. THIS GUARANTY CONSTITUTES THE ENTIRE AGREEMENT BETWEEN GUARANTOR AND EXCO PERTAINING TO
THE SUBJECT MATTER HEREOF AND SUPERSEDES ALL PRIOR AGREEMENTS, UNDERSTANDINGS, NEGOTIATIONS, AND DISCUSSIONS, WHETHER ORAL OR WRITTEN, OF EXCO AND GUARANTOR PERTAINING TO THE SUBJECT MATTER HEREOF. THERE ARE NO WARRANTIES, REPRESENTATIONS, OR OTHER
AGREEMENTS BETWEEN GUARANTOR OR EXCO RELATING TO THE SUBJECT MATTER HEREOF EXCEPT AS SPECIFICALLY SET FORTH IN THIS GUARANTY OR THE DEFINITIVE AGREEMENTS, AND NEITHER GUARANTOR NOR EXCO SHALL BE BOUND BY OR LIABLE FOR ANY ALLEGED REPRESENTATION,
PROMISE, INDUCEMENT, OR STATEMENTS OF INTENTION NOT SO SET FORTH. 
 Section 9. Parties in Interest.
Notwithstanding anything contained in this Guaranty to the contrary, nothing in this Guaranty, expressed or implied, is intended to confer on any Person other than the Parties, EXCO PA and EXCO WV any rights, remedies, obligations or liabilities
under or by reason of this Guaranty. 
 Section 10. Amendment. This Guaranty may be amended only by an
instrument in writing executed by the Parties (or EXCO PA or EXCO WV, as applicable) against whom enforcement is sought. 

Section 11. Waiver: Rights Cumulative. Any of the terms, covenants, representations, warranties, or conditions hereof
may be waived only by a written instrument executed by or on behalf of the Party (or EXCO PA or EXCO WV, as applicable) waiving compliance. No course of dealing on the part of Guarantor or EXCO, or their respective officers, employees, agents, or
representatives, nor any failure by Guarantor or EXCO to exercise any of their rights under this Guaranty shall operate as a waiver thereof or affect in any way the right of such Person at a later time to enforce the performance of such provision.
No waiver by any Party (or EXCO PA or EXCO WV, as applicable) of any condition, or any breach of any term, covenant, representation, or warranty contained in this Guaranty, in any one or more instances, shall be deemed to be or construed as a
further or continuing waiver of any such condition or breach or a waiver of any other condition or of any breach of any other term, covenant, representation, or warranty. The rights of Guarantor and EXCO under this Guaranty shall be cumulative, and
the exercise or partial exercise of any such right shall not preclude the exercise of any other right. 
  

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 Section 12. Governing Law; Jury Waiver. THIS GUARANTY AND THE LEGAL
RELATIONS AMONG EXCO AND GUARANTOR SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER
JURISDICTION. SUBJECT TO SECTION 13, EXCO AND GUARANTOR CONSENT TO THE EXERCISE OF JURISDICTION IN PERSONAM BY THE COURTS OF THE STATE OF TEXAS FOR ANY DISPUTE. EXCO AND GUARANTOR EACH WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY DISPUTE. 
 Section 13. Arbitration. Any dispute
among the Parties, EXCO PA and EXCO WV with respect to this Guaranty shall be resolved through final and binding arbitration in accordance with the arbitration procedures set out in Section 15.16 of the MITA, which shall apply mutatis mutandis
to any such dispute. Any papers, notices, or process necessary or proper for an arbitration hereunder, or any court action in connection with an arbitration or an award, may be served on a Party (or EXCO PA or EXCO WV, as applicable) in the manner
set forth in Section 6 above. 
 Section 14. Payments. All sums payable under this Guaranty shall
be paid within fifteen (15) Business Days after EXCO’s demand for payment is received, in immediately available funds in lawful money of the United States of America that at the time of payment is legal tender for the payment of public and
private debts. 
 Section 15. Severability. If any term or other provision of this Guaranty is invalid,
illegal, or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Guaranty 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 any adverse manner to any Party (or EXCO PA or EXCO WV, as applicable). Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, EXCO and Guarantor shall
negotiate in good faith to modify this Guaranty so as to effect the original intent of EXCO and Guarantor as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 Section 16. Counterparts. This Guaranty may be executed in any number of counterparts, and each such
counterpart hereof shall be deemed to be an original instrument, but all of such counterparts shall constitute for all purposes one agreement. Any signature hereto delivered by a Party by facsimile transmission or by e-mail of a PDF file shall be
deemed an original signature hereto, provided that any facsimile or e-mail transmission of a signature page delivered by a Party shall be followed promptly by an original signature page. 

Section 17. Scope. Subject only to Section 3, this Guaranty creates for Guarantor no more rights and
imposes on Guarantor no more obligations and duties with respect to the payment of the Guaranteed Obligations than Guarantor would have if it had executed the Definitive Agreements in the place of BGPC, BG PA or BG WV. 

 

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 Section 18. EXCO PA and EXCO WV. EXCO Holding will cause each of EXCO PA
and EXCO WV to be bound by the terms of this Guaranty and to perform any and all obligations each such Person may have under this Guaranty. 

Section 19. References and Rules of Construction. Unless otherwise indicated, capitalized terms used but not otherwise
defined herein and defined in the MITA shall have the meanings given such terms in the MITA. All references in this Guaranty to Sections, subsections and other subdivisions refer to the corresponding Sections, subsections and other subdivisions of
or to this Guaranty unless expressly provided otherwise. Titles appearing at the beginning of any Sections, subsections and other subdivisions of this Guaranty are for convenience only, do not constitute any part of this Guaranty, and shall be
disregarded in construing the language hereof. The words “this Guaranty,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Guaranty as a whole and not to any
particular Section, subsection or other subdivision unless expressly so limited. The words “this Section,” and “this subsection,” and words of similar import, refer only to the Section or subsection hereof in which such words
occur. The word “including” (in its various forms) means including without limitation. All references to “$” or “dollars” shall be deemed references to United States dollars. Each accounting term not defined herein will
have the meaning given to it under GAAP as interpreted as of the date of this Guaranty. Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender, and words, terms and titles (including terms defined
herein) in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires. 

[Signature Pages Follow] 
  

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 IN WITNESS WHEREOF, the Parties have duly executed this Guaranty as of the day and year
first above set forth. 
  

			
	GUARANTOR:
	
	 BG ENERGY HOLDINGS LIMITED

		
	By:	 	 /s/ MARTIN HOUSTON

	Name:	 	Martin Houston
	Title:	 	Director
	
	EXCO:
	
	 EXCO HOLDING (PA), INC.

		
	By:	 	 /s/ DOUGLAS H. MILLER

	Name:	 	Douglas H. Miller
	Title:	 	Chief Executive Officer