Exhibit 10.1
 
June 15, 2009
 
Quicksilver Resources Inc.
777 West Rosedale Street, Suite 300
Fort Worth, Texas  76104
Attention:  MarLu Hiller

Quicksilver Resources Canada Inc.
One Palliser Square, Suite 2000
125-9th Avenue, SE
Calgary, Alberta T2G OP8
Canada
Attention:  MarLu Hiller
 
Re:
Amended and Restated Credit Agreement (as amended or modified from time to time,
the “U.S. Credit Agreement”) dated as of February 9, 2007, among Quicksilver
Resources Inc., a Delaware corporation (the “U.S. Borrower”), the Lenders party
thereto (the “U.S. Lenders”), JPMorgan Chase Bank, N.A., as Global
Administrative Agent (the “Global Administrative Agent”), and the other Agents
party thereto, and Amended and Restated Credit Agreement (as amended or modified
from time to time, the “Canadian Credit Agreement” and, together with the U.S.
Credit Agreement, the “Combined Credit Agreements”), dated as of February 9,
2007, among Quicksilver Resources Canada Inc., an Alberta, Canada corporation
(the “Canadian Borrower” and, together with the U.S. Borrower, the “Combined
Borrowers”), the Lenders party thereto (the “Canadian Lenders” and, together
with the U.S. Lenders, the “Combined Lenders”), the Global Administrative Agent,
JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, and
the other Agents party thereto.  Unless otherwise indicated, all capitalized
terms used herein, but not otherwise defined, shall have the same meanings
herein as in the U.S. Credit Agreement.

 
Ladies and Gentlemen:
 
The Combined Borrowers have advised the Global Administrative Agent and the
Combined Lenders that the U.S. Borrower has determined that, in addition to the
financial information with respect to the U.S. Borrower and its subsidiaries,
the U.S. Borrower 's annual and quarterly financial information should include
additional information with respect to the U.S. Borrower and those of its
subsidiaries that are “Restricted Subsidiaries” under the (1) the First
Supplemental Indenture, dated March 16, 2006, among the U.S. Borrower, the
subsidiary guarantors party thereto and JPMorgan Chase Bank, National
Association, as trustee, to the Indenture, dated December 22, 2005, among the
U.S Borrower and The Bank of New York Trust Company, N.A., as trustee (the
“First Supplemental Indenture”), and (2) the Fifth Supplemental Indenture, dated
as of June 27, 2008, among the U.S. Borrower, the subsidiary guarantors party
thereto and The Bank of New York Trust Company, N.A., as trustee, to the
Indenture, dated December 22, 2005, among the U.S Borrower and The Bank of New
York Trust Company, N.A., as trustee (the “Fifth Supplemental Indenture” and
together with the First Supplemental Indenture, the “Supplemental
Indentures”).  Accordingly, the U.S. Borrower intends to file amendments to its
2008 Form 10-K and its First Quarter 2009 Form 10-Q (such filing with the SEC of
a Form 10-K/A being referred to herein as the “Amended 10-K”) to restate its
consolidated financial statements for the year ended December 31, 2008 and for
the quarter ended March 31, 2009 to include this information (the “Additional
Disclosures”).  While the Supplemental Indentures contemplate provision of such
information by the U.S. Borrower in certain circumstances, the U.S. Borrower has
advised the Global
 
 
 

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Quicksilver Resources Inc.
Quicksilver Resources Canada Inc.
June 15, 2009
Page 2
 
Administrative Agent and the Combined Lenders that it has not received any
notices of non-compliance from the trustee under any of the Supplemental
Indentures or from any holders of its existing bonds.
 
In connection with the Additional Disclosures,  the Combined Borrowers have
further advised the Global Administrative Agent and the Combined Lenders that
the Combined Borrowers are seeking confirmation from the Combined Lenders that
the fact that the U.S. Borrower had not included the Additional Disclosures in
prior filings will not, for purposes of the Combined Credit Agreements, be
considered or treated as a “Default” or “Event of Default” under, or failure to
comply with, the Combined Credit Agreements.
 
In consideration of the mutual covenants and agreements contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, the parties hereto hereby agree for purposes
of the Combined Credit Agreements and the other Combined Loan Documents,  that
the failure by the U.S. Borrower to comply, at any time prior to the Filing Date
(as defined below), with the requirements of the second paragraph of Section
3.10 of the First Supplemental Indenture and the second paragraph of Section
3.10 of the Fifth Supplemental Indenture, and any “Default” or “Event of
Default” arising solely from such failure under the Supplemental Indentures,
shall not constitute a Default or an Event of Default under each Combined Credit
Agreement.
 
The limited waiver set forth in the preceding paragraph shall be effective on
the date that each condition precedent set forth in this paragraph is satisfied:
 
(a)     The Amended 10-K shall be filed on or prior to June 30, 2009 (which date
of filing, so long as on or prior to June 30, 2009, shall be referred to herein
as the “Filing Date”), a copy of which Amended 10-K shall be provided to the
Global Administrative Agent and Combined Lenders pursuant to Section 5.1(e) of
the U.S. Credit Agreement.
 
(b)     After giving effect to the limited waiver contained herein, (i) neither
a Default nor an Event of Default has occurred and will exist under either
Combined Credit Agreement, (ii) neither a Default (as defined in the Existing
Subordinate Note Indenture) nor an Event of Default (as defined in the Existing
Subordinate Note Indenture) has occurred and will exist under the Existing
Subordinate Note Indenture, and (iii) neither the U.S. Borrower or any of its
Subsidiaries nor the Canadian Borrower or any of its Subsidiaries is in default
under, nor has any event or circumstance occurred which, but for the expiration
of any applicable grace period or the giving of notice, or both, would
constitute a default under, any Material Agreement to which the U.S. Borrower or
any of its Subsidiaries or the Canadian Borrower or any of its Subsidiaries is a
party or by which the U.S. Borrower or any of its Subsidiaries or the Canadian
Borrower or any of its Subsidiaries is bound which default would reasonably be
expected to have a Material Adverse Effect.  The U.S. Borrower is in compliance
with the financial covenants set forth in Article VI of the U.S. Credit
Agreement.
 
(c)     After giving effect to the limited waiver contained herein, each
representation and warranty of each Loan Party (as such term is defined in the
U.S. Credit Agreement and the Canadian Credit Agreement) contained in the
Combined Loan Documents to which it is a party is true and correct on the date
hereof, except to the extent such representations and warranties are expressly
stated as of a certain date, in which case such representations and warranties
shall be true and correct in all material respects as of such date.
 
 
 
 

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Quicksilver Resources Inc.
Quicksilver Resources Canada Inc.
June 15, 2009
Page 3
 
Miscellaneous.  (a) The Combined Borrowers hereby agree to pay on demand all
reasonable out-of-pocket fees and expenses incurred by the Global Administrative
Agent (including, without limitation, reasonable fees and expenses of counsel to
the Global Administrative Agent) in connection with the preparation, negotiation
and execution of this letter agreement and all related documents, (b) this
letter agreement may be executed in counterparts, and all parties need not
execute the same counterpart; however, no party shall be bound by this letter
agreement until a counterpart hereof has been executed by the U.S. Borrower, the
Canadian Borrower, the Global Administrative Agent, the Canadian Administrative
Agent and the Majority Lenders; facsimiles or other electronic transmission
(e.g., pdf) shall be effective as originals, (c) THIS LETTER AGREEMENT
REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES REGARDING THE MATTERS SET FORTH
HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
PARTIES, (d) this letter agreement constitutes a “Loan Document,” a “Canadian
Loan Document” and a “Combined Loan Document” under and as defined in the U.S.
Credit Agreement, and a “Loan Document,” a “U.S. Loan Document” and a “Combined
Loan Document” under and as defined in the Canadian Credit Agreement, and (e)
this letter agreement shall be governed by, and construed in accordance with,
the laws of the State of Texas.
 
Please evidence your agreement to each of the provisions of this letter
agreement by executing a counterpart hereof where indicated and returning a
fully executed counterpart to Catherine S. Callahan, counsel for the Global
Administrative Agent, via facsimile number (214) 999-7958 or via electronic
e-mail to ccallahan@velaw.com.
 
[Signature Pages Follow]
 

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JPMORGAN CHASE BANK, N.A., as Global Administrative Agent and as a U.S. Lender
           
By:
/s/ Kimberly A. Bourgeois       Kimberly A. Bourgeois        Senior Vice
President          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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JPMORGAN CHASE BANK, N.A. TORONTO BRANCH, as a Canadian Administrative Agent and
as a Canadian Lender
           
By:
/s/ Michael N. Tam     Name: Michael N. Tam     Title: Senior Vice President    
     

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  BANK OF AMERICA, N.A., as a U.S. Lender            
By:
/s/ Ronald E. McKaig     Name: Ronald E. McKaig     Title: Senior Vice President
         

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  BNP PARIBAS, as a U.S. Lender            
By:
/s/ Richard Hawthorne     Name: RICHARD HAWTHORNE     Title: DIRECTOR          

 
By:
/s/ Russell Otts     Name: RUSSELL OTTS     Title: DIRECTOR          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  FORTIS CAPITAL CORP., as a U.S. Lender            
By:
/s/ Michele Jones     Name: Michele Jones     Title: Director          

 
By:
/s/ Darrell Holley     Name: Darrell Holley     Title: Managing Director        
 

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  THE BANK OF NOVA SCOTIA, as a U.S. Lender            
By:
/s/ David Mills     Name: David Mills     Title: Managing Director          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  DEUTSCHE BANK TRUST COMPANY AMERICAS, as a U.S. Lender            
By:
/s/ Dusan Lazarov     Name: Dusan Lazarov     Title: Vice President          

 
By:
/s/ Valerie Shapiro     Name: Valerie Shapiro     Title: Vice President        
 

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  CALYON NEW YORK BRANCH, as a U.S. Lender            
By:
/s/ Tom Byargeon     Name: Tom Byargeon     Title: Managing Director          

 
By:
/s/ Sharada Manne     Name: Sharada Manne     Title: Director          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  CITIBANK, N.A., as a U.S. Lender            
By:
/s/ John Mugno     Name: John Mugno     Title: Vice President          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  TORONTO DOMINION (TEXAS) LLC, as a U.S. Lender            
By:
/s/ Jackie Barrett     Name: JACKIE BARRETT     Title: AUTHORIZED SIGNATORY    
     

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  U.S. BANK NATIONAL ASSOCIATION, as a U.S. Lender            
By:
/s/ Daria M. Mahoney     Name: Daria M. Mahoney     Title: Vice President      
   

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  COMPASS BANK, as a U.S. Lender            
By:
/s/ Dorothy Marchand     Name: Dorothy Marchand     Title: Senior Vice President
         

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  SOCIÉTÉ GÉNÉRALE, as a U.S. Lender            
By:
/s/ Stephen W. Warfel     Name: Stephen W. Warfel     Title: Managing Director  
       

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  COMERICA BANK, N.A., as a U.S. Lender            
By:
/s/ Peter L. Sefzik     Name: Peter L. Sefzik     Title: Senior Vice President  
       

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  STERLING BANK, as a U.S. Lender            
By:
/s/ Melissa A. Bauman     Name: Melissa A. Bauman     Title: Senior Vice
President          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  CIBC INC., as a U.S. Lender            
By:
/s/ Dominic J. Sorresso     Name: Dominic J. Sorresso     Title: Executive
Director             CIBC World Markets Corp.     Authorized Signatory  

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  EXPORT DEVELOPMENT CANADA, as a U.S. Lender            
By:
/s/ Janine Dopson     Name: Janine Dopson     Title: Asset Manager          

 
By:
/s/ Shawn Cusik     Name: Shawn Cusik     Title: Loan Portfolio Manager        
 

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  BARCLAYS BANK PLC, as a U.S. Lender            
By:
/s/ Maria Lund     Name: Maria Lund     Title: Vice President          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as a U.S. Lender
           
By:
/s/ Vanessa Gomez     Name: Vanessa Gomez     Title: Director          

 
By:
/s/ Mikhail Faybusovich     Name: Mikhail Faybusovich     Title: Vice President
         

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  SCOTIABANC INC., as a U.S. Lender            
By:
/s/ J.F. Todd     Name: J.F. Todd     Title: Managing Director          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  GOLDMAN SACHS BANK USA, as a U.S. Lender            
By:
/s/ Andrew Caditz     Name: Andrew Caditz     Title: Authorized Signatory      
   

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  BANK OF AMERICA, N.A. (by its Canada branch), as a Canadian Lender            
By:
/s/ Medina Sales de Andrade     Name: Medina Sales de Andrade     Title: Vice
President          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  BNP PARIBAS (CANADA), as a Canadian Lender            
By:
/s/ Michael Gosselin     Name: Michael Gosselin     Title: Managing Director    
     

 
By:
/s/ Jean-Philippe Cadot     Name: Jean-Philippe Cadot     Title: Director      
   

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  FORTIS CAPITAL (CANADA) LTD., as a Canadian Lender            
By:
/s/ Cory Wallin     Name: Cory Wallin     Title: Vice President          

 
By:
/s/ Doug Clark     Name: Doug Clark     Title: Director          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  THE BANK OF NOVA SCOTIA, as a Canadian Lender            
By:
/s/ Stacey Strike     Name: Stacey Strike     Title: Director          

 
By:
/s/ Andrew Kellock     Name: ANDREW KELLOCK     Title: DIRECTOR          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  CALYON NEW YORK BRANCH, as a Canadian Lender            
By:
/s/ Tom Byargeon     Name: Tom Byargeon     Title: Managing Director          

 
By:
/s/ Sharada Manne     Name: Sharada Manne     Title: Director          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  CITIBANK, N.A., CANADIAN BRANCH, as a Canadian Lender            
By:
/s/ Ivan Davey     Name: Ivan Davey     Title: Authorised Signer          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  THE TORONTO-DOMINION BANK, as a Canadian Lender            
By:
/s/ Jackie Barrett     Name: JACKIE BARRETT     Title: AUTHORIZED SIGNATORY    
     

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  SOCIÉTÉ GÉNÉRALE (CANADA BRANCH), as a Canadian Lender            
By:
/s/ David Baldoni     Name: David BALDONI     Title: Managing Director          

 
By:
/s/ Paul Primavesi     Name: Paul PRIMAVESI     Title: Director          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  COMERICA BANK, CANADA BRANCH, as a Canadian Lender            
By:
/s/ Omer Ahmed     Name: Omer Ahmed     Title: Portfolio Manager          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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CANADIAN IMPERIAL BANK OF COMMERCE, as a Canadian Lender
           
By:
/s/ Randy Geislinger     Name: Randy Geislinger     Title: Executive Director  
       

 
By:
/s/ Joelle Chatwin     Name: Joelle Chatwin     Title: Executive Director      
   

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  BARCLAYS BANK, PLC, as a Canadian Lender            
By:
/s/ Maria Lund     Name: Maria Lund     Title: Vice President          

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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  CREDIT SUISSE, TORONTO BRANCH, as a Canadian Lender            
By:
/s/ Steve W. Fuh     Name: Steve W. Fuh     Title: Vice-President          

 
By:
/s/ Craig Henshaw     Name: Craig Henshaw     Title: Managing Director, COO    
     

 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.

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Accepted and agreed to as of
the date first written above by:
 

QUICKSILVER RESOURCES INC.,
a Delaware corporation, as U.S. Borrower
 

By:
/s/ MarLu Hiller
      MarLu Hiller, Vice President - Treasurer    

 
QUICKSILVER RESOURCES CANADA INC.,
an Alberta, Canada corporation, as Canadian Borrower
 

By:
/s/ MarLu Hiller
      MarLu Hiller, Vice President - Treasurer    

 
 
[Signature Page]
Letter Agreement
Quicksilver Resources Inc.