Document:

KWK 8-K 2013.06.21 EX10.2

        
Exhibit 10.2

OMNIBUS AMENDMENT NO. 5 
TO COMBINED CREDIT AGREEMENTS
THIS OMNIBUS AMENDMENT NO. 5 TO COMBINED CREDIT AGREEMENTS (this “Amendment”), dated as of June 21, 2013, is among QUICKSILVER RESOURCES INC., (the “U.S. Borrower”), QUICKSILVER RESOURCES CANADA INC., (the “Canadian Borrower”) (collectively, the “Combined Borrowers”), JPMORGAN CHASE BANK, N.A., as global administrative agent (in such capacity, the “Global Administrative Agent”), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian administrative agent (in such capacity, the “Canadian Administrative Agent” and, together with the Global Administrative Agent, the “Administrative Agents”), and each of the U.S. Lenders and Canadian Lenders party hereto.

R E C I T A L S
A.    The U.S. Borrower, the Global Administrative Agent and the various financial institutions party thereto as Agents or Lenders (the “U.S. Lenders”) entered into that certain Amended and Restated Credit Agreement dated as of December 22, 2011 (as amended by Omnibus Amendment No. 1 dated as of May 23, 2012, Omnibus Amendment No. 2 dated as of August 6, 2012, Omnibus Amendment No. 3 dated as of October 5, 2012, and Omnibus Amendment No. 4 dated as of April 30, 2013, and as amended, supplemented or modified, the “U.S. Credit Agreement”).
B.    Quicksilver Resources Inc., as parent, the Canadian Borrower, the Canadian Administrative Agent, the Global Administrative Agent, and the various financial institutions party thereto as agents or lenders (the “Canadian Lenders”) entered into that certain Amended and Restated Credit Agreement dated as of December 22, 2011 (as amended by Omnibus Amendment No. 1 dated as of May 23, 2012, Omnibus Amendment No. 2 dated as of August 6, 2012, Omnibus Amendment No. 3 dated as of October 5, 2012, and Omnibus Amendment No. 4 dated as of April 30, 2013, and as amended, supplemented or modified, the “Canadian Credit Agreement”) (the U.S. Credit Agreement and the Canadian Credit Agreement being collectively referred to as the “Combined Credit Agreements”).
C.    The Combined Borrowers have requested that the Required Lenders and the Required U.S. Lenders agree, and the Required Lenders and the Required U.S. Lenders have agreed, to amend certain provisions of the Combined Credit Agreements to, among other things, facilitate the incurrence of Permitted Second Lien Debt.
D.    The U.S. Guarantors are party to that certain Guaranty Agreement dated as of September 6, 2011 (as amended, supplemented or modified, the “U.S. Guaranty”).
E.    The U.S. Guarantors and the Canadian Guarantors are party to that certain Guaranty Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “Canadian Guaranty” and, together with the U.S. Guaranty, the “Guaranties”).

F.    The U.S. Borrower and certain U.S. Guarantors are party to that certain Pledge Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “U.S. Pledge Agreement”).
G.    The Canadian Borrower and certain Canadian Guarantors are party to that certain Pledge Agreement dated October 26, 2012 (as amended, supplemented or modified, the “Canadian Pledge Agreement” and, together with the U.S. Pledge Agreement, the “Pledge Agreements”; the Pledge Agreements and the Guaranties, the “Specified Collateral Documents”).
H.     The U.S. Borrower is party to that certain Mortgage, Deed of Trust  Mortgage, Deed of Trust, Assignment of As-Extracted Collateral, Security Agreement, Fixture Filing and Financing Statement dated as of September 6, 2011, as amended by that First Amendment thereto dated December 22, 2011 and that Second Amendment thereto dated as of the date hereof, which is attached hereto as Exhibit B (the “Second Mortgage Amendment”).
I.    To comply with Section 8.13(f) of each Combined Credit Agreement and to facilitate uniformity between the Specified Collateral Documents and certain Second Lien Debt Documents, the Combined Borrowers are complying with a request by the Global Administrative Agent to amend the Specified Collateral Documents pursuant to this Amendment and to enter into the Second Mortgage Amendment.
J.    In accordance with the requirements of Section 9.02(u) of each Combined Credit Agreement and in connection with the expected incurrence of Permitted Second Lien Debt on the date hereof, the U.S. Borrower, certain U.S. Guarantors, the Global Administrative Agent, as representative for the Secured Parties, Credit Suisse AG, Cayman Islands Branch, as representative for the initial holders of such expected Permitted Second Lien Debt, and The Bank of New York Mellon Trust Company N.A., as trustee under a Second Lien Debt Agreement and agent for the holders of such expected Permitted Second Lien Debt, have agreed to enter into a Second Lien Intercreditor Agreement substantially in the form of Exhibit C attached hereto on the date hereof.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given to such term in the U.S. Credit Agreement, as amended by this Amendment.  Unless otherwise indicated, all section references in this Amendment refer to applicable section of the Combined Credit Agreements.
Section 2.    Amendments to Combined Credit Agreements.
2.1    Amendments to Table of Contents.  Page (iv) of the table of contents of each of the Combined Credit Agreements is amended to add Schedule 1.01 attached hereto as Exhibit A.
2.2    Amendments to Section 1.02—Certain Defined Terms.

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(a)    The following definitions are hereby added where alphabetically appropriate to each of the Combined Credit Agreements:
““Fifth Omnibus Amendment” means that certain Omnibus Amendment No. 5 To Combined Credit Agreements, dated as of June 21, 2013, among Quicksilver Resources Inc., Quicksilver Resources Canada Inc., the Global Administrative Agent and the other parties party thereto.
“Specified Second Lien Transaction Costs” means the “Transaction Costs” (as defined in the Second Lien Debt Documents on the date hereof) that are related to the initial incurrence of Permitted Second Lien Debt.”
(b)    The definition of “Cash Interest Expense” in the: 
(i) U.S. Credit Agreement is hereby amended to read as follows:
““Cash Interest Expense” means, with respect to the Borrower and the Consolidated Restricted Subsidiaries on a consolidated basis for any period, Interest Expense for such period, less the sum of (a) pay-in-kind Interest Expense or other non-cash Interest Expense (including as a result of the effects of purchase accounting), (b) to the extent included in Interest Expense, the amortization of any financing fees paid by, or on behalf of, the Borrower or any Consolidated Restricted Subsidiary, including such fees paid in connection with the Transactions, (c) the amortization of debt discounts, if any, or fees and deferred gains or losses with respect to Swap Agreements in respect of interest rates, (d) interest income of the Borrower and the Consolidated Restricted Subsidiaries actually received in cash for such period, (e) any charges related to any premium or penalty paid, write off of deferred financing costs or other financial recapitalization charges in connection with redeeming or retiring any indebtedness prior to its stated maturity, (f) to the extent included in Interest Expense, any interest paid on property and income tax payments, litigation settlements or any other obligation that does not constitute Debt and (g) interest expense capitalized during such period; provided that (i) Cash Interest Expense shall exclude any (x) one-time financing fees paid in connection with the Transactions or any amendment of this Agreement or the Canadian Credit Agreement and (y) one-time consent or similar fees paid to holders of the Existing Debt in connection with the refinancing of the Existing Subordinated Notes in an amount not to exceed $15,000,000 in the aggregate, (ii) if the Borrower or any Consolidated Restricted Subsidiary shall have Redeemed, incurred, replaced or repriced any Existing Debt, Permitted Second Lien Debt or Permitted Additional Debt during such period, Cash Interest Expense shall be subject to pro forma adjustments for such Redemption, incurrence, replacement or repricing as if such Redemption, incurrence, replacement or repricing had occurred on the first day of such period in a manner satisfactory to the Global Administrative Agent and (iii) with respect to the repayment of the Loans occurring substantially concurrently with the consummation of the Barnett  Shale Joint Venture, Cash Interest Expense shall be subject to pro forma adjustment for such repayment, with the amount of such repayment being deemed to be no greater 

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than $155,000,000 for purposes of such adjustment, as if such repayment had occurred on the first day of such period in a manner satisfactory to the Global Administrative Agent.”
 (ii) Canadian Credit Agreement is hereby amended to read as follows:
““Cash Interest Expense” means, with respect to the Parent and the Consolidated Restricted Subsidiaries on a consolidated basis for any period, Interest Expense for such period, less the sum of (a) pay-in-kind Interest Expense or other non-cash Interest Expense (including as a result of the effects of purchase accounting), (b) to the extent included in Interest Expense, the amortization of any financing fees paid by, or on behalf of, the Parent or any Consolidated Restricted Subsidiary, including such fees paid in connection with the Transactions, (c) the amortization of debt discounts, if any, or fees and deferred gains or losses with respect to Swap Agreements in respect of interest rates, (d) interest income of the Parent and the Consolidated Restricted Subsidiaries actually received in cash for such period, (e) any charges related to any premium or penalty paid, write off of deferred financing costs or other financial recapitalization charges in connection with redeeming or retiring any indebtedness prior to its stated maturity, (f) to the extent included in Interest Expense, any interest paid on property and income tax payments, litigation settlements or any other obligation that does not constitute Debt and (g) interest expense capitalized during such period; provided that (i) Cash Interest Expense shall exclude any (x) one-time financing fees paid in connection with the Transactions or any amendment of this Agreement or the U.S. Credit Agreement and (y) one-time consent or similar fees paid to holders of the Existing Debt in connection with the refinancing of the Existing Subordinated Notes in an amount not to exceed $15,000,000 in the aggregate, (ii) if the Parent or any Consolidated Subsidiary shall have Redeemed, incurred, replaced or repriced any Existing Debt, Permitted Second Lien Debt or Permitted Additional Debt during such period, Cash Interest Expense shall be subject to pro forma adjustments for such Redemption, incurrence, replacement or repricing as if such Redemption, incurrence, replacement or repricing had occurred on the first day of such period in a manner satisfactory to the Global Administrative Agent and (iii) with respect to the repayment of the Loans occurring substantially concurrently with the consummation of the Barnett  Shale Joint Venture, Cash Interest Expense shall be subject to pro forma adjustment for such repayment, with the amount of such repayment being deemed to be no greater than $155,000,000 for purposes of such adjustment, as if such repayment had occurred on the first day of such period in a manner satisfactory to the Global Administrative Agent.”
(c)    In the definition of “Consolidated Net Income” in each Combined Credit Agreement: 
(i)    Clause (d) is hereby amended to read as follows:

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“(d)    non-cash gains, losses or adjustments, including non-cash gains, losses or adjustments under authoritative guidance from the FASB as a result of changes in the fair market value of derivatives and any gains or losses attributable to writeups or writedowns of assets, including ceiling test writedowns and writedowns under authoritative guidance from the FASB as a result of accounting for oil and gas activities, goodwill and other intangible assets, and property, plant and equipment (for the avoidance of doubt, realized gains or losses will be counted in Consolidated Net Income in the quarter that cash is actually received or paid, including with respect to the Swap Restructuring which occurred during the fiscal year ended December 31, 2012 (it being understood that, notwithstanding anything to the contrary herein, (i) the parties intend for gains resulting from such Swap Restructuring to be added to and losses resulting from such Swap Restructuring to be deducted from, in each case, Consolidated Net Income in the quarter that cash is actually received or paid in respect thereof and not to count such gains or losses as non-cash gains or losses, and (ii) the amount of such gains and losses, in each case, shall be the amounts set forth in Schedule 1.01));”

(ii)    Clause (h) is hereby amended to read as follows:
“(h)    any fees and expenses incurred in connection with (i) the proposed Barnett Shale Transaction in an aggregate amount not to exceed $9,000,000 (it being understood that such transaction refers to the contemplated MLP transaction in respect of the MLP Barnett Shale Assets and does not refer to the Barnett Shale Joint Venture), (ii) the Second Omnibus Amendment, (iii) the Fourth Omnibus Amendment and (iv) any strategic transactions in respect of the Barnett Shale Joint Venture, asset dispositions or acquisitions or the evaluation thereof or of other transactions, whether or not consummated, which, in each case, are paid in the fiscal year ended December 31, 2013 and are in an aggregate amount not to exceed $5,000,000;”
(iii)    Clause (k) is hereby amended to read as follows:
“(k)    severance, retirement, separation or other related expenses in an aggregate amount not to exceed $10,500,000;”
(iv)    The following new sentence is hereby added at the end of the definition of “Consolidated Net Income”:
“It is understood, for avoidance of doubt, that, with respect to determining whether any cap on an amount that may be excluded from Consolidated Net Income has been exceeded, the phrase ‘in an aggregate amount’ shall refer to amounts excluded in respect of applicable events that occurred in such period and in any prior periods (e.g., clause (k) permits any severance, retirement, separation or other related expenses incurred during the term of this Agreement to be excluded so long as the total amount of such expenses does not exceed $10,500,000).”
(d)    The definition of “Material Acquisition” in the: 
(i) U.S. Credit Agreement is hereby amended to read as follows:

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““Material Acquisition” means the acquisition of the Equity Interests of a Person or the acquisition of assets from a Person, in each case for consideration of at least $25,000,000; provided that if Borrower or its Restricted Subsidiaries exercises Borrower’s right to pay the “Full Completion” difference pursuant to and as defined in that certain agreement dated March 19, 2012 by and between Borrower and Eni Petroleum US LLC causing Borrower’s interest in the wells subject to that agreement to revert to Borrower, then such reversion shall be treated as a Material Acquisition regardless of the consideration paid for purposes of determining whether EBITDAX shall be subject to pro forma adjustment for such acquisition.”
(i) Canadian Credit Agreement is hereby amended to read as follows:
““Material Acquisition” means the acquisition of the Equity Interests of a Person or the acquisition of assets from a Person, in each case for consideration of at least $25,000,000; provided that if the Parent or its Restricted Subsidiaries exercises Parent’s right to pay the “Full Completion” difference pursuant to and as defined in that certain agreement dated March 19, 2012 by and between Parent and Eni Petroleum US LLC causing Parent’s interest in the wells subject to that agreement to revert to Parent, then such reversion shall be treated as a Material Acquisition regardless of the consideration paid for purposes of determining whether EBITDAX shall be subject to pro forma adjustment for such acquisition.”
(e)    The definition of “EBITDAX” in the each of the Combined Credit Agreement is hereby amended to add the following sentence to the end of such definition:  “For avoidance of doubt, no expense or charge shall be added back to Consolidated Net Income for purposes of determining EBITDAX to the extent such expense or charge has been already excluded for purposes of determining Consolidated Net Income”.
(f)     To reflect the incurrence of Permitted Second Lien Debt, the definition of “Permitted Liens” in the:
(i) U.S. Credit Agreement is hereby amended to read as follows:
““Permitted Liens” means with respect to (a) any Oil and Gas Property of the Borrower or any Restricted Subsidiary of the types described in clauses (a), (b), (c), (e) and (f) of the definition of “Oil and Gas Properties” evaluated in the Reserve Reports used in the most recent determination of the Global Borrowing Base, the Liens permitted under clauses (a), (b), (c), (g), (h), (j) and (n) of Section 9.03, (b) any Equity Interests issued by any Restricted Subsidiary, Liens of the type described in clause (a) of the definition of “Excepted Liens” or clause (n) of Section 9.03 and (c) all property and assets (other than those referred to in the foregoing clauses (a) and (b)), Liens of the type listed under Section 9.03.”
(ii) Canadian Credit Agreement is hereby amended to read as follows:
““Permitted Liens” means with respect to (a) any Oil and Gas Property of the Parent or any Restricted Subsidiary of the types described in clauses (a), (b), (c), (e) and (f) of the 

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definition of “Oil and Gas Properties” evaluated in the Reserve Reports used in the most recent determination of the Global Borrowing Base, the Liens permitted under clauses (a), (b), (c), (g), (h), (j) and (n) of Section 9.03, (b) any Equity Interests issued by any Restricted Subsidiary, Liens of the type described in clause (a) of the definition of “Excepted Liens” or clause (n) of Section 9.03 and (c) all property and assets (other than those referred to in the foregoing clauses (a) and (b)), Liens of the type listed under Section 9.03.”
(g)    The definition of “Secured Parties” in 
(i) U.S. Credit Agreement is hereby amended to read:
““Secured Parties” means the Agents, the Lenders, the Bank Product Providers, Secured Swap Providers and any Issuing Bank.”
(ii) Canadian Credit Agreement is hereby amended to read:
““Secured Parties” means the Agents, the Lenders, the Bank Product Providers, Secured Swap Providers and any Issuing Bank.”
2.3    Amendment to Section 6.02—Each Credit Event.  
(a)    Section 6.02 of the U.S. Credit Agreement is hereby amended by adding the following words to the end of Section 6.02(a) before the period:
“ and no Secured Indebtedness or Canadian Secured Indebtedness will fail to constitute “Senior Obligations” (as defined in the Second Lien Intercreditor Agreement attached to the Fifth Omnibus Amendment as Exhibit C).”
(b)    Section 6.02 of the Canadian Credit Agreement is hereby amended by adding the following words to the end of Section 6.02(a) before the period:
“ and no Secured Indebtedness or U.S. Secured Indebtedness will fail to constitute “Senior Obligations” (as defined in the Second Lien Intercreditor Agreement attached to the Fifth Omnibus Amendment as Exhibit C).”
2.4    Amendment to Section 8.01(h) —Other Requested Information.
(a)    The parenthetical in Section 8.01(h) of the U.S. Credit Agreement is hereby amended to read:
“(including, without limitation, (i) any Canadian Pension Plan, Plan or Multiemployer Plan and any reports or other information required to be filed under ERISA and (ii) the “Cap Amount” and the Borrower or any Restricted Subsidiary’s incurrence or issuance of Debt, if any, secured by a “Prior Lien” or the existence of such Debt (for purposes of this parenthetical, each quoted term has the meaning ascribed to it in the Second Lien Intercreditor Agreement attached as Exhibit C to the Fifth Omnibus Amendment))”

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(b)    The parenthetical in Section 8.01(h) of the Canadian Credit Agreement is hereby amended to read:
“(including, without limitation, (i) any Canadian Pension Plan, Plan or Multiemployer Plan and any reports or other information required to be filed under ERISA and (ii) the “Cap Amount” and the Parent or any Restricted Subsidiary’s incurrence or issuance of Debt, if any, secured by a “Prior Lien” or the existence of such Debt (for purposes of this parenthetical, each quoted term has the meaning ascribed to it in the Second Lien Intercreditor Agreement attached as Exhibit C to the Fifth Omnibus Amendment))”

2.5    Amendment to Section 8.13(c)—Additional Guarantors.  
(a)    Section 8.13(c)(ii)(A) of the U.S. Credit Agreement is hereby amended to add the words “and other Person who executes the Guaranty Agreement to guarantee payment of the Secured Indebtedness” before the “;”.
(b)    Section 8.13(c)(i) of the Canadian Credit Agreement is hereby amended to add the words “and other Person who executes the U.S. Guaranty Agreement to guarantee payment the U.S. Secured Indebtedness” before the “;”.
2.6    Amendments to Section 9.02—Debt.
(a)    Section 9.02(u) of the U.S. Credit Agreement is hereby amended to read:
 “(u)    Debt under the Second Lien Debt Documents incurred by the Borrower and any Guarantees thereof by a Guarantor (including any Persons becoming Guarantors simultaneously with the incurrence of such Debt), the principal amount of which Debt does not exceed the lesser of (x) $825,000,000 and (y) the initial principal amount of Permitted Second Lien Debt incurred under this Section 9.02(u) (it being understood that such initial incurrence may be in the form of loans, notes or a combination thereof incurred substantially concurrently); provided that (i) immediately before, and after giving effect to, the incurrence of any such Debt (and any concurrent repayment of Debt with the proceeds of such incurrence), no Default exists or would exist, and along with clauses (ii) through (vii) below, as certified by a Financial Officer of the Borrower to the Global Administrative Agent, (ii) such Debt shall not have terms that are materially more restrictive than the terms of the Loan Documents (it being understood that (x) in no event shall the Permitted Second Lien Debt contain a financial maintenance covenant and (y) the terms of the Second Lien Debt Documents for such Permitted Second Lien Debt as disclosed to the Global Administrative Agent prior to the date hereof, are not materially more restrictive than the terms of the Loan Documents for purposes of this clause (ii)), (iii) such Debt does not have any scheduled amortization of principal prior to the Maturity Date, (iv) such Debt does not have mandatory prepayment provisions (other than (A) a provision whereby the Borrower will offer to repurchase the Permitted Second Lien Debt upon a change of control (as defined therein) subject to the conditions to making such repurchase set forth in Section 9.05(a) being satisfied, (B) a provision requiring the Borrower to repay the initial incurrence of Permitted Second Lien Debt using any proceeds thereof that were not used to Redeem Existing Debt 

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or pay Specified Second Lien Transaction Costs, in each case, within ninety (90) days of the closing date thereof and (C) provisions with respect to asset sales or casualty events that satisfy clause (vi) below) that would result in such Debt being repaid prior to the Secured Indebtedness or Canadian Secured Indebtedness, (v) such Debt has a maturity no earlier than ninety-one (91) days after the Maturity Date, (vi) such Debt does not prohibit prior repayment of Loans or the Canadian Loans, (vii) such Debt shall be at all times subject to a Second Lien Intercreditor Agreement and the Secured Indebtedness and Canadian Secured Indebtedness shall be secured on a senior priority basis to such Debt, (viii) immediately before, and after giving effect to, the incurrence of any such Debt (and any concurrent repayment of Debt with the proceeds of such incurrence), the Borrower and the Guarantors are solvent (as determined (A) conclusively by reference to a certificate of a Financial Officer delivered in connection with the incurrence of such Permitted Second Lien Debt, if such a certificate is delivered in connection with the incurrence of such Permitted Second Lien Debt or (B) conclusively by a certificate of a Financial Officer to the Global Administrative Agent certifying solvency in accordance with the requirements set forth in Section 7.18, if a solvency certificate is not delivered in connection with the incurrence of such Permitted Second Lien Debt) and (ix) the Global Administrative Agent shall have received (A) final drafts of a Second Lien Debt Agreement (and any other Second Lien Debt Documents reasonably requested by the Global Administrative Agent) two (2) Business Days prior to the incurrence of such Permitted Second Lien Debt, (B) executed copies of such Second Lien Debt Agreement upon the incurrence of such Debt and (C) promptly upon subsequent reasonable request by the Global Administrative Agent, any Second Lien Debt Documents;
provided further that on the later of (x) July 1, 2013 or (y) the forty-fifth (45th) day after the closing date of the initial Second Lien Debt Agreement (such date, the “Adjustment Date”), (A) the Global Borrowing Base and U.S. Borrowing Base then in effect on the Adjustment Date shall be automatically reduced by an amount equal to the product of (1)(x) the stated principal amount of such Permitted Second Lien Debt minus (y) the sum of (I) any portion of proceeds thereof used to refinance or redeem Existing Debt and (II) the amount of any prepayment premiums or penalties paid in connection with such refinancing of Existing Debt and any fees (including original issue discount), costs and expenses paid in respect of such refinancing or the incurrence of such Permitted Second Lien Debt, not to exceed $90,000,000 in the aggregate for this clause (II) multiplied by (2) 0.25, and (B) the Global Borrowing Base and U.S. Borrowing Base as so reduced shall become the new Global Borrowing Base and U.S. Borrowing Base applicable to the Borrower, the Global Administrative Agent, the Issuing Bank and the Lenders until the next redetermination or modification thereof hereunder.  For purposes of this Section 9.02(u), the “stated principal amount” shall mean the stated face amount of such Debt without giving effect to any original issue discount.”
(b)    Section 9.02(u) of the Canadian Credit Agreement is hereby amended to read:
 “(u)    Debt under the Second Lien Debt Documents incurred by the Parent and any Guarantees thereof by a Guarantor (including any Persons becoming Guarantors simultaneously with the incurrence of such Debt), the principal amount of which Debt does 

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not exceed the lesser of (x) $825,000,000 and (y) the initial principal amount of Permitted Second Lien Debt incurred under this Section 9.02(u) (it being understood that such initial incurrence may be in the form of loans, notes or a combination thereof incurred substantially concurrently); provided that (i) immediately before, and after giving effect to, the incurrence of any such Debt (and any concurrent repayment of Debt with the proceeds of such incurrence), no Default exists or would exist, and along with clauses (ii) through (vii) below, as certified by a Financial Officer of the Parent to the Global Administrative Agent, (ii) such Debt shall not have terms that are materially more restrictive than the terms of the Loan Documents (it being understood that (x) in no event shall the Permitted Second Lien Debt contain a financial maintenance covenant and (y) the terms of the Second Lien Debt Documents for such Permitted Second Lien Debt as disclosed to the Global Administrative Agent prior to the date hereof are not materially more restrictive than the terms of the Loan Documents for purposes of this clause (ii)), (iii) such Debt does not have any scheduled amortization of principal prior to the Maturity Date, (iv) such Debt does not have mandatory prepayment provisions (other than (A) a provision whereby the Parent will offer to repurchase the Permitted Second Lien Debt upon a change of control (as defined therein) subject to the conditions to making such repurchase set forth in Section 9.05(a) being satisfied, (B) a provision requiring the Borrower to repay the initial incurrence of Permitted Second Lien Debt using any proceeds thereof that were not used to Redeem Existing Debt or pay Specified Second Lien Transaction Costs, in each case, within ninety (90) days of the closing date thereof and (C) provisions with respect to asset sales or casualty events that satisfy clause (vi) below) that would result in such Debt being repaid prior to the Secured Indebtedness or Canadian Secured Indebtedness, (v) such Debt has a maturity no earlier than ninety-one (91) days after the Maturity Date, (vi) such Debt does not prohibit prior repayment of U.S. Loans or the Loans, (vii) such Debt shall be at all times subject to a Second Lien Intercreditor Agreement and the U.S. Secured Indebtedness and Secured Indebtedness shall be secured on a senior priority basis to such Debt, (viii) immediately before, and after giving effect to, the incurrence of any such Debt (and any concurrent repayment of Debt with the proceeds of such incurrence), the Parent and the Guarantors are solvent (as determined (A) conclusively by reference to a certificate of a Financial Officer delivered in connection with the incurrence of such Permitted Second Lien Debt, if such a certificate is delivered in connection with the incurrence of such Permitted Second Lien Debt or (B) conclusively by a certificate of a Financial Officer to the Global Administrative Agent certifying solvency in accordance with the requirements set forth in Section 7.18, if a solvency certificate is not delivered in connection with the incurrence of such Permitted Second Lien Debt) and (ix) the Global Administrative Agent shall have received (A) final drafts of a Second Lien Debt Agreement (and any other Second Lien Debt Documents reasonably requested by the Global Administrative Agent) two (2) Business Days prior to the incurrence of such Permitted Second Lien Debt, (B) executed copies of such Second Lien Debt Agreement upon the incurrence of such Debt and (C) promptly upon subsequent reasonable request by the Global Administrative Agent, any Second Lien Debt Documents; 
provided further that on the later of (x) July 1, 2013 or (y) the forty-fifth (45th) day after the closing date of the initial Second Lien Debt Agreement (such date, the “Adjustment Date”), (A) the Global Borrowing Base and U.S. Borrowing Base then in effect on the 

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Adjustment Date shall be automatically reduced by an amount equal to the product of (1)(x) the stated principal amount of such Permitted Second Lien Debt minus (y) the sum of (I) any portion of proceeds thereof used to refinance or redeem Existing Debt and (II) the amount of any prepayment premiums or penalties paid in connection with such refinancing of Existing Debt and any fees (including original issue discount), costs and expenses paid in respect of such refinancing or the incurrence of such Permitted Second Lien Debt, not to exceed $90,000,000 in the aggregate for this clause (II) multiplied by (2) 0.25, and (B) the Global Borrowing Base and U.S. Borrowing Base as so reduced shall become the new Global Borrowing Base and U.S. Borrowing Base applicable to the Parent, the Global Administrative Agent, the Administrative Agent, the Issuing Bank and the Lenders until the next redetermination or modification thereof hereunder.  For purposes of this Section 9.02(u), the “stated principal amount” shall mean the stated face amount of such Debt without giving effect to any original issue discount.”

2.7    Amendments to Section 9.05—Repayment of Debt; Amendment of Indentures and Second Lien Debt Agreement
(a)    Section 9.05(a)(III)(iii) of the U.S. Credit Agreement is hereby amended to read:
“(iii)    Redeem Existing Debt, Permitted Additional Debt or Permitted Second Lien Debt using the net cash proceeds from (A) the sale of assets permitted by Section 9.10 and (B) the issuance of the Permitted Second Lien Debt if, in each case, (1) no Default has occurred and is continuing at the time such Redemption is made or would result from the making of such Redemption, (2) the Global Borrowing Base Utilization Percentage, after giving effect to the making of such Redemption, is less than 75% (it being understood that for purposes of this clause (2) any amount of Combined LC Exposure that has been cash collateralized in a manner satisfactory to each Issuing Bank and the Global Administrative Agent shall be deemed not to constitute Combined Credit Exposure for purposes of determining the Global Borrowing Base Utilization Percentage), (3) no Global Borrowing Base Deficiency or U.S. Borrowing Base Deficiency has occurred and is continuing at the time such Redemption is made and (4) after giving effect to such Redemption, the Borrower is in pro forma compliance with Section 9.01; and”
(b)    Section 9.05(a)(III)(iii) of the Canadian Credit Agreement is hereby amended to read:
“(iii)    Redeem Existing Debt, Permitted Additional Debt or Permitted Second Lien Debt using the net cash proceeds from (A) the sale of assets permitted by Section 9.10 and (B) the issuance of the Permitted Second Lien Debt if, in each case, (1) no Default has occurred and is continuing at the time such Redemption is made or would result from the making of such Redemption, (2) the Global Borrowing Base Utilization Percentage, after giving effect to the making of such Redemption, is less than 75% (it being understood that for purposes of this clause (2) any amount of Combined LC Exposure that has been cash collateralized in a manner satisfactory to each Issuing Bank and the Administrative Agent shall be deemed not to constitute Combined Credit Exposure for purposes of determining the Global 

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Borrowing Base Utilization Percentage), (3) no Global Borrowing Base Deficiency or U.S. Borrowing Base Deficiency has occurred and is continuing at the time such Redemption is made and (4) after giving effect to such Redemption, the Parent is in pro forma compliance with Section 9.01; and”
(c)    Section 9.05 of each Combined Credit Agreement is hereby amended by adding the following new Section 9.05(a)(III)(iv):
“(iv)    Redeem the initial incurrence of Permitted Second Lien Debt (it being understood that such initial incurrence may be in the form of loans, notes or a combination thereof incurred substantially concurrently) using the net cash proceeds from the issuance of such Permitted Second Lien Debt to the extent such proceeds are not used to Redeem Existing Debt or pay Specified Second Lien Transaction Costs, in each case, within ninety (90) days of the closing date of such Permitted Second Lien Debt.”

(d)    The proviso in clause (ii) of Section 9.05(b) of each of the Combined Credit Agreements is hereby amended to add the words “contemporaneous or future” immediately prior to the words “refinancing of the Existing Subordinated Notes”.
(e)    Section 9.05(c) of the U.S. Credit Agreement is hereby amended to read:
“(c)    if the Borrower or any Restricted Subsidiary issues any Debt that is subordinated in right of payment to the Secured Indebtedness or the Canadian Secured Indebtedness, as applicable, designate any other Debt (other than the Secured Indebtedness, the Canadian Secured Indebtedness, the Existing Debt, any Permitted Additional Debt and any Permitted Second Lien Debt) as “designated senior indebtedness” or “designated guarantor senior indebtedness” or gives any such other Debt any other similar designation for the purposes of any instrument under which that subordinated Debt is issued.”

(f)    Section 9.05(c) of the Canadian Credit Agreement is hereby amended to read:
“(c)    if the Parent or any Restricted Subsidiary issues any Debt that is subordinated in right of payment to the Secured Indebtedness or the U.S. Secured Indebtedness, as applicable, designate any other Debt (other than the Secured Indebtedness, the U.S. Secured Indebtedness, the Existing Debt, any Permitted Additional Debt and any Permitted Second Lien Debt) as “designated senior indebtedness” or “designated guarantor senior indebtedness” or give any such other Debt any other similar designation for the purposes of any instrument under which that subordinated Debt is issued.”

2.8    Amendment to Article 11—The Agents.  Article 11 of each Combined Credit Agreement is hereby amended by adding the following new Section 11.12:
“Second Lien Intercreditor Agreement.  Each Lender (and each Person that becomes a Lender hereunder pursuant to Section 12.04) hereby authorizes and directs the Global Administrative Agent to (a)(i) enter into a Second Lien Intercreditor Agreement on behalf of such Lender and (ii) amend the Security Instruments to reflect the existence of any 

12

Permitted Second Lien Debt (including making any change thereto in order to ensure compliance with Section 8.13(f)) and (b) agrees that Global Administrative Agent may take such actions on its behalf as is contemplated by the terms of such Second Lien Intercreditor Agreement.”
2.9    Amendment to Section 12.03—Expenses.  
(a)    Clause (i) of Section 12.03(a) of each Combined Credit Agreement is hereby amended by replacing the words “and the other Loan Documents” with the words “, the other Loan Documents and Second Lien Intercreditor Agreement”.
(b)    Clause (iv) of Section 12.03(a) of each Combined Credit Agreement is hereby amended by replacing the words “or any other Loan Document” with the words “, any other Loan Document or Second Lien Intercreditor Agreement”.
2.10    Typographical Amendment to Selected Section.  Section 4.04 of the U.S. Credit Agreement is hereby amended by deleting the words “Section 4.05” and “Section 4.06” from the last sentence thereof.
Section 3.    Amendments to U.S. Guaranty and Canadian Guaranty.
3.1    The first sentence of Section 2 of each Guaranty is hereby amended by inserting the phrase “and the other Loan Documents” immediately after the phrase “set forth in the Credit Agreement”.
3.2    The first sentence of Section 7 of each of the U.S. Guaranty and Canadian Guaranty is hereby amended to read:
“If all or any part of the Secured Indebtedness at any time is secured, each Guarantor agrees that Administrative Agent and/or the Lenders may at any time and from time to time, at their discretion and with or without valuable consideration, allow substitution or withdrawal of collateral or other security and release collateral or other security or compromise or settle any amount due or owing under the Credit Agreement or amend or modify in whole or in part the Credit Agreement or any Loan Document executed in connection with same, without, in either case, impairing or diminishing the obligations of each Guarantor hereunder.”

3.3    Section 18 of the U.S. Guaranty and Section 30 of the Canadian Guaranty are hereby amended to insert the words “in each case,” immediately before the word “segregated”.
3.4    Section 19(a) of the U.S. Guaranty and Section 31(a) of the Canadian Guaranty are each hereby amended to update to telecopy number of the General Counsel to be “817-665-5021”. 
3.5    Section 22(a) of the U.S. Guaranty and Section 36(a) of the Canadian Guaranty are each hereby amended to read: 

13

“(a)    At any time any Guarantor is sold or otherwise disposed of in a transaction permitted under the Credit Agreement, then in accordance with the terms of the Credit Agreement (including, without limitation, Section 8.13 and 9.10(d)) and receipt by the Administrative Agent of the evidence required by Section 8.13(d) of the Credit Agreement in connection with any such release, such Guarantor shall be released automatically from its obligations under this Guaranty.”.
Section 4.    Amendments to Pledge Agreements.
4.1    Recital C of the U.S. Pledge Agreement is hereby amended to read:
“The Borrowers, the other Pledgors and/or one or more of the Borrower’s Restricted Subsidiaries and Secured Swap Providers (as defined in each of the Credit Agreements) (such secured swap providers, collectively, the “Secured Swap Providers” and each, a “Secured Swap Provider”) have entered into, or may enter into, Swap Agreements (collectively, the “Secured Swap Agreements” and each, a “Secured Swap Agreement”).”
4.2    Recital B of the Canadian Pledge Agreement is hereby amended to read: 
“The Borrower, the other Pledgors and/or one or more of the Canadian Credit Parties and Secured Swap Providers have entered into, or may enter into, Swap Agreements (collectively, the “Secured Swap Agreements” and each, a “Secured Swap Agreement”).”
4.3    The following definition is hereby added where alphabetically appropriate to each of the Pledge Agreements:
(c)    ““Equity Interests” means shares of capital stock, partnership interests, membership interests, beneficial interests or other ownership interests, whether voting or nonvoting, in, or interests in the income or profits of, a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing (other than, prior to the date of such conversion, Debt that is convertible into any such Equity Interests).”
4.4    Section 4.04(a) of the U.S. Pledge Agreement and Section 4.03(a) of the Canadian Pledge Agreement are hereby amended to delete the word “stock” immediately after the phrase “shall receive any”.
4.5    Section 4.04(d) of the U.S. Pledge Agreement and Section 4.03(d) of the Canadian Pledge Agreement are hereby amended to replace the word “occurrences” with the word “occurrence” in the last sentence thereof.
4.6    Section 7.06(a) of the U.S. Pledge Agreement is hereby amended to read:
(a)    “All covenants, agreements, representations and warranties made by any Pledgor herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Combined Loan Document to which it is a party shall be considered to have been relied upon by the Pledgee and the Combined Secured Parties and shall survive the execution and delivery of this Agreement and the making of any Combined 

14

Loans and issuance of any Combined Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Pledgee or any Combined Secured Party may have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect until the Secured Obligations are Paid In Full In Cash.  The provisions of Section 7.03 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Combined Loans, the expiration or termination of the Combined Letters of Credit and the Combined Commitments or the termination of this Agreement, any other Combined Loan Document or any provision hereof or thereof.”.
4.7    Section 7.06(a) of the Canadian Pledge Agreement is hereby amended to read:
(b)    “All covenants, agreements, representations and warranties made by any Pledgor herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document to which it is a party shall be considered to have been relied upon by the Pledgee and the Secured Parties and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Pledgee or any Secured Party may have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect until the Secured Obligations are Paid In Full In Cash.  The provisions of Section 7.03 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan Document or any provision hereof or thereof.”.
Section 5.    Conditions Precedent.
5.1    This Amendment shall not become effective until the date on which each of the following conditions is satisfied (the “Fifth Amendment Effective Date”):
(c)    The Global Administrative Agent shall have received from each of the Combined Borrowers, the Guarantors, the Required Lenders, the Global Administrative Agent and the Canadian Administrative Agent counterparts of this Amendment signed on behalf of each such Person.
(d)    The Global Administrative Agent shall have received from each party duly executed counterparts of the Second Lien Intercreditor Agreement on terms reasonably satisfactory to the Global Administrative Agent.
(e)    The Global Administrative shall have received (i) reasonably satisfactory evidence that the funding of the initial incurrence of the Permitted Second Lien Debt (it being understood that such initial incurrence may be in the form of loans, notes or a combination thereof incurred substantially concurrently) shall have occurred or shall occur substantially concurrently 

15

with Fifth Amendment Effective Date, (ii) executed copies of all Second Lien Debt Documents in respect of such Permitted Second Lien Debt and (iii) a certificate satisfying the requirements of Section 9.02(u)(i) in respect of such Permitted Second Lien Debt.
(f)    The Combined Borrowers shall have paid all amounts due and payable in connection with this Amendment on or prior to the Fifth Amendment Effective Date, including, to the extent invoiced at least one (1) Business Day prior to such date, all documented out-of-pocket expenses required to be reimbursed or paid by the Combined Borrowers under the Combined Credit Agreements.
Section 6.    Miscellaneous.
6.1    Confirmation.  All of the terms and provisions of the Combined Credit Agreements, as amended by this Amendment, are, and shall remain, in full force and effect following the effectiveness of this Amendment.  
6.2    Ratification and Affirmation; Representations and Warranties.  Each Combined Borrower hereby (a) acknowledges the terms of this Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document (as defined in the applicable Combined Credit Agreement as used in this Section) to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein; and (c) represents and warrants to the Lenders (as defined in the applicable Combined Credit Agreement) that as of the date hereof, after giving effect to the terms of this Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects on and as of the Fifth Amendment Effective Date, except that to the extent any such representations and warranties are (x) expressly limited to an earlier date, in which case, on the Fifth Amendment Effective Date such representations and warranties shall continue to be true and correct as of such specified earlier date and (y) qualified by materiality, such representations and warranties (as so qualified) shall continue to be true and correct in all respects and (ii) no Default (as defined in the applicable Combined Credit Agreement) has occurred and is continuing as of the Fifth Amendment Effective Date.  Each Guarantor (as defined in the applicable Combined Credit Agreement) (i) acknowledges the terms of this Amendment and (ii) ratifies and affirms (A) its respective obligations under the Loan Documents to which it is a party (including its guarantee obligations under the applicable Guaranty Agreement (as defined in the applicable Combined Credit Agreement) to which it is a party as amended hereby), all of which shall continue in full force and effect and (B) that the Liens created by the Loan Documents to which it is a party are valid and continuing and secure the Secured Indebtedness or Canadian Secured Indebtedness, as the case may be, in accordance with the terms thereof, in each case, after giving effect to this Amendment. This Amendment is a Loan Document.
6.3    Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart by facsimile or electronic mail shall be effective as delivery of a manually executed counterpart hereof.

16

6.4    Governing Law, Jurisdiction, etc. Sections 12.09 and 12.18 of the Canadian Credit Agreement shall be incorporated herein mutatis mutandis as this Amendment relates to the Canadian Credit Agreement and Sections 12.09 and 12.18 of the U.S. Credit Agreement shall be incorporated herein mutatis mutandis as this Amendment relates to the U.S. Credit Agreement.
[SIGNATURES BEGIN NEXT PAGE]

17

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

	
		
	QUICKSILVER RESOURCES INC., a Delaware corporation 

	 

	By:
	/s/ John C. Regan

	 
	Name: John C. Regan
Title: Senior Vice President – Chief Financial Officer and Chief Accounting Officer

QUICKSILVER RESOURCES CANADA INC., an Alberta, Canada corporation
		
	By:
	/s/ John C. Regan     
Name: John C. Regan 
Title: Senior Vice President – Chief Financial Officer

	
		
	 
	With respect to Sections 3, 4 and 6 hereof:

COWTOWN PIPELINE MANAGEMENT, INC., a Texas corporation 

	 
	 

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer

	 
	 

	 
	COWTOWN PIPELINE FUNDING, INC., a Delaware corporation

	 
	 

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer
      

	 
	COWTOWN GAS PROCESSING L.P., a Texas limited partnership

By:   Cowtown Pipeline Management, Inc., its general partner

	 
	 

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer of Cowtown Pipeline Management, Inc., Cowtown Gas Processing L.P.’s general partner

	 
	 

	 
	COWTOWN PIPELINE L.P., a Texas limited partnership

By:   Cowtown Pipeline Management, Inc., its general partner

	 
	 

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer of Cowtown Pipeline Management, Inc., Cowtown Pipeline L.P.’s general partner

	 
	 

	 
	BARNETT OPERATING LLC., a Delaware limited liability company

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer

	

	

	 
	SILVER STREAM PIPELINE COMPANY LLC., a Delaware limited liability company

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer

	 
	 

	 
	QPP HOLDINGS LLC, a Delaware limited liability company

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer

	 
	 

	 
	QPP PARENT LLC, a Delaware limited liability company

By:   Quicksilver Resources Inc., its sole member

	 
	 

	 
	By:  /s/ John C. Regan             
        Name:   John C. Regan
        Title:      Senior Vice President – Chief Financial Officer and Chief Accounting Officer of Quicksilver Resources Inc., QPP Parent LLC’s sole member

JPMORGAN CHASE BANK, N.A., as a Lender under the U.S. Credit Agreement and as Global Administrative Agent
		
	By:
	/s/ David Morris     
Name: David Morris 
Title: Authorized Officer

JPMORGAN CHASE BANK, N.A., TORONTO BRANCH,  as a Lender under the Canadian Credit Agreement and as Canadian Administrative Agent
		
	By:
	/s/ Deborah Booth     
Name: Deborah Booth 
Title: Vice President

BANK OF AMERICA, N.A., as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Alia Qaddumi      
Name: Alia Qaddumi     
Title: Vice President    

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

BRANCH BANKING & TRUST COMPANY, as a Lender under the U.S. Credit Agreement and the Canadian Credit Agreement
		
	By:
	/s/ Ryan K. Michael     
Name: Ryan K. Michael     
Title: Senior Vice President

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

		
	By:
	/s/ Kevin McConnell         
Name: Kevin McConnell 
Title: Executive Director

CIBC INC., as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Daria Mahoney     
Name: Daria Mahoney     
Title: Authorized Signatory

		
	By:
	/s/ Robert Casey     
Name: Robert Casey     
Title: Authorized Signatory    

CITIBANK, N.A., as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Phil Ballard         
Name:    Phil Ballard 
Title:    Vice President

CITIBANK, N.A., CANADIAN BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Jonathan Cain     
Name: Jonathan Cain     
Title: Authorized Signatory    

COMERICA BANK, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Ekaterina Evseev         
Name: Ekaterina Evseev 
Title: Assistant Vice President

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

SIGNATURE PAGE TO OMNIBUS AMENDMENT NO. 5 TO
COMBINED CREDIT AGREEMENTS

COMPASS BANK, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Umar Hassan         
Name: Umar Hassan 
Title: Vice President

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender under the U.S. Credit Agreement and the Canadian Credit Agreement
		
	By:
	/s/ Mark Roche         
Name: Mark Roche 
Title: Managing Director

		
	By:
	/s/ Michael Willis         
Name: Michael Willis 
Title: Managing Director

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Nupur Kumar         
Name: Nupur Kumar 
Title: Authorized Signatory

		
	By:
	/s/ Michael Spaight         
Name: Michael Spaight 
Title: Authorized Signatory

CREDIT SUISSE AG, TORONTO BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Alain Daoust     
Name: Alain Daoust 
Title: Authorized signatory

		
	By:
	/s/ Chris Gage     
Name: Chris Gage 
Title: Authorized signatory

SIGNATURE PAGE TO OMNIBUS AMENDMENT NO. 5 TO
COMBINED CREDIT AGREEMENTS

DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Marcus M. Tarkington         
Name: Marcus M. Tarkington 
Title: Director

		
	By:
	/s/ Dusan Lazarov         
Name: Dusan Lazarov 
Title: Director

EXPORT DEVELOPMENT CANADA, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Trevor Mulligan         
Name: Trevor Mulligan 
Title: Asset Manager

		
	By:
	/s/ Talal M. Kairouz         
Name: Talal M. Kairouz 
Title: Senior Asset Manager

GOLDMAN SACHS BANK USA, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Michelle Latzoni         
Name: Michelle Latzoni 
Title: Authorized Signatory 

KEYBANK, N.A., as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Chulley Bogle         
Name: Chulley Bogle 
Title: Vice President

SIGNATURE PAGE TO OMNIBUS AMENDMENT NO. 5 TO
COMBINED CREDIT AGREEMENTS

THE BANK OF NOVA SCOTIA, as a Lender under the U.S. Credit Agreement and the Canadian Credit Agreement
By:    /s/ Terry Donovan         
Name:    Terry Donovan 
Title: Managing Director

THE ROYAL BANK OF SCOTLAND plc, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ David W. Stack         
Name:    David W. Stack 
Title:    Senior Vice President

THE ROYAL BANK OF SCOTLAND N.V., (CANADA) BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ David W. Stack         
Name:    David W. Stack 
Title:    Authorized Signatory

TORONTO DOMINION (NEW YORK) LLC, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Wallace Wong         
Name: Wallace Wong 
Title: Authorized Signatory

THE TORONTO-DOMINION BANK, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Wallace Wong     
Name: Wallace Wong 
Title: Authorized Signatory

UBS LOAN FINANCE LLC, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Lana Gifas         
Name: Lana Gifas 
Title: Director

		
	By:
	/s/ David Urban         
Name: David Urban 
Title: Associate Director

UBS AG CANADA BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Lana Gifas         
Name: Lana Gifas 
Title: Director

		
	By:
	/s/ David Urban         
Name: David Urban 
Title: Associate Director

WELLS FARGO BANK, N.A., as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Greg Smothers         
Name: Greg Smothers 
Title: Director

SIGNATURE PAGE TO OMNIBUS AMENDMENT NO. 5 TO
COMBINED CREDIT AGREEMENTS

WELLS FARGO FINANCIAL CORPORATION CANADA, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Greg Smothers     
Name: Greg Smothers 
Title: Director

SIGNATURE PAGE TO OMNIBUS AMENDMENT NO. 5 TO
COMBINED CREDIT AGREEMENTS

EXHIBIT A
[Please see attached]

EXHIBIT B
[Please see attached]

EXHIBIT C
[Please see attached]DubLi-PurchaseSubscriptionAgreement

PURCHASE AGREEMENT
This Purchase Agreement (this “Agreement”) is made as of June ___, 2013 (the “Effective Date”), by and between DubLi, Inc., a Nevada corporation (the “Company”), with a principal business address of 5200 Town Center Circle, Suite 601, Boca Raton, Florida 33486, and _____________________, an individual having a residential address as set forth on the signature page hereof (the “Purchaser”).

RECITAL

The Purchaser desires to purchase from the Company, and the Company desires to sell to the Purchaser, that number of shares (the “Securities”) of common stock, par value $0.001 per share (“Common Stock”), set forth on the signature page hereof at a purchase price per Share of $0.10 (the “Per Share Purchase Price”).

AGREEMENT

NOW, THEREFORE, the parties agree as follows:

1.    Purchase and Sale; Certain Terms and Procedures.  
(a)    The Purchaser hereby purchases from the Company, and the Company hereby sells to the Purchaser, the Securities at the Per Share Purchase Price.  

             (b)    The aggregate purchase price for the Securities purchased hereunder shall be the product of (i) the number of Securities and (ii) the Per Share Purchase Price (the “Purchase Price”).  The Purchase Price shall be paid (i) in cash, (ii) by cancellation of indebtedness owed by the Company to the Purchaser, or (iii) a combination thereof, as set forth on the signature page hereof.   The portion of the Purchase Price payable in cash, if any, shall be paid simultaneously with the execution and delivery of this Agreement by the Purchaser via check or money order payable to the order of the Company (or via wire transfer of funds in accordance with instructions provided by the Company).  

(c)    Upon closing of the transactions contemplated by this Agreement and subject to the Company’s actual receipt of payment in full of the Purchase Price, the Company shall issue and deliver to the Purchaser  a stock certificate representing the Securities.  In the event that the Company issues shares of Common Stock to the Purchaser pursuant to this Agreement, but the Purchaser fails to deliver payment to the Company (whether due to a check returned for insufficient funds or otherwise), then, to the extent that such shares of Common Stock are not paid for, such shares of Common Stock (and any certificates therefor) shall for all purposes be deemed unissued, cancelled and void, and upon the Company’s request the Purchaser shall promptly return and deliver to the Company any stock certificates for such unissued shares of Common Stock. 

2.    Representations, Warranties, Acknowledgements and Agreements of the Purchaser.  The Purchaser hereby represents, warrants, acknowledges and agrees as follows:

DM3\2561151.3

(a)    If the Purchaser resides outside of the United States, the Purchaser represents and warrants that the purchase of the Securities does not constitute a violation of any securities, currency exchange or other laws or regulations of the jurisdictions where such Purchaser resides.  The Purchaser acknowledges that he is solely responsible for ascertaining compliance with the foregoing.
(b)    The Purchaser must bear the economic risk of the acquisition of the Securities for the foreseeable future because the offer and sale of the Securities is not registered under the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws.  The Purchaser understands that the sale of the Securities is intended to be exempt from registration under the Securities Act by virtue of Regulation D and/or Regulation S (“Regulation S”) promulgated thereunder, based, in part, upon the representations, warranties and agreements of the Purchaser contained in this Agreement.
(c)    Neither the Securities and Exchange Commission nor any state securities commission has approved any of the Securities or passed upon or endorsed the merits of the sale of the Securities by the Company.
(d)    The Purchaser is aware that none of the Securities may be sold, hypothecated or otherwise disposed of unless such transfer of the Securities is subsequently registered under the Securities Act and applicable state securities laws or unless counsel (satisfactory to the Company) renders an opinion (satisfactory to the Company) that registration under the Securities Act and any applicable state securities laws is not required.  The Company has not agreed to make available an exemption from the registration requirements of the Securities Act for resale of any of the Securities and is under no obligation to register any of the Securities under the Securities Act or any state securities laws.
(e)    The Purchaser will not engage in any hedging transactions with regard to the Shares, unless in compliance with the Securities Act.
(f)    The Purchaser confirms that the Securities were not offered to the Purchaser by any means of general solicitation, publication, or general advertising, and except as expressly set forth in Section 3 hereof, the Purchaser has not received any representations, warranties or written communications with respect to the offering of the Securities.
(g)    The Purchaser acknowledges and understands that the certificates representing the Securities to be purchased by the Purchaser will bear, by imprint or endorsement, appropriate legends reflecting the status of the Securities under the Securities Act and applicable state securities laws. 
(h)    The Purchaser meets the requirements of at least one of the Purchaser Suitability Standards set forth on Annex A attached hereto.  The Purchaser has marked thereon which of such suitability standards is applicable to the Purchaser.  The Purchaser shall furnish any additional information requested by the Company to assure compliance with applicable federal and state securities laws in connection with the purchase and sale of the Securities.
(i)    If the Purchaser has checked the box on Annex A indicating that the Purchaser is not a “U.S. person” (as defined in Annex A) and the Purchaser is not an “accredited investor,” then the Purchaser represents that (i) upon consummation of the transactions contemplated 

2
DM3\2561151.3

by this Agreement, the Purchaser will be the sole record and beneficial owner of the Securities; (ii) the Purchaser has not pre-arranged any sale, disposition or other transfer of all or any portion of (or any interest in) the Shares with any person or entity in the United States, nor does the Purchaser have any plans to do same; (iii) the Purchaser is outside the United States as of the date of the execution and delivery of this Agreement and the issuance of the Securities hereunder; (iv) the Purchaser has no present intention to sell or otherwise transfer the Securities (or any interest therein) except in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration under the Securities Act; (v) the Purchaser understands and acknowledges that the Company is required, pursuant to Rule 903 of Regulation S, to refuse to register the transfer of any of the Shares (or any interest therein) that are not transferred pursuant to a registration statement under the Securities Act or pursuant to an available exemption from registration under the Securities Act, in all cases subject to compliance with Regulation S; (vi) the Purchaser will not, directly or indirectly, or through one or more intermediaries, maintain any short position in the Shares during the “Distribution Compliance Period” (as defined in Regulation S); and (vii) the Purchaser confirms that the Company has not engaged in any “directed selling efforts” or “publication,” as such terms are defined in Regulation S, with respect to the Securities.
(j)    The Purchaser has adequate means of providing for its current financial needs and possible personal contingencies and has no need for liquidity in its investment in the Securities.  The Purchaser is able to bear the complete loss of the entire Purchase Price.
(k)    The Purchaser has such knowledge and experience in business, financial and investment matters so that the Purchaser is capable of evaluating the merits and risks of an investment in the Securities.
(l)    The Purchaser has had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning the Company and the sale of the Securities and all such questions have been answered to the full satisfaction of the Purchaser.
(m)    The Purchaser has had access to and has carefully reviewed such financial and other information concerning the Company and the Securities as the Purchaser desires to review, and, due to the Purchaser’s connection to the Company is otherwise well-informed regarding the Company, and its current and proposed business and financial condition.  The Purchaser hereby certifies and acknowledges that Purchaser understands all such materials related to the Company and this Agreement.  To the full satisfaction of Purchaser, the Purchaser has been furnished any materials the Purchaser has requested relating to the Company and the sale of the Securities.  The Purchaser has, to the extent the Purchaser believes such discussion necessary, discussed with the Purchaser’s professional legal, tax, accounting and financial advisers the suitability of an investment in the Securities for the Purchaser’s particular tax and financial situation and has determined that the Securities being purchased are a suitable investment for the Purchaser.  The Purchaser is not relying upon any information, representation or warranty by the Company or any of its agents in determining to consummate the transactions contemplated by this Agreement and is relying on the Purchaser’s own examination of the Company and the terms of this Agreement, including the merits and risks involved, in making its investment decision.

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(n)    An investment in the Company is highly speculative and involves a risk of loss of the entire investment and no assurance can be given of any income from such investment.  THE PURCHASER HEREBY ACKNOWLEDGES AND CONFIRMS THAT THE PURCHASER HAS CAREFULLY CONSIDERED THE RISKS AND UNCERTAINTIES INVOLVED IN INVESTING IN THE SECURITIES BEFORE MAKING AN INVESTMENT DECISION TO PURCHASE THE SECURITIES.
(o)    The Purchaser has taken no action, which would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Agreement or the transactions contemplated hereby.
(p)    The Purchaser has all requisite legal capacity to acquire and hold the Securities and to execute, deliver and comply with the terms of this Agreement.  The execution and delivery by the Purchaser, and compliance by the Purchaser with, this Agreement does not conflict with, or constitute a default under, any instruments governing the Purchaser, any law, regulation or order, or any agreement to which the Purchaser is a party or by which the Purchaser is bound.  The Agreement has been duly executed by the Purchaser and constitutes the legal, valid and binding agreement of the Purchaser, enforceable against the Purchaser in accordance with its terms.
(q)    The Purchaser’s domicile is at the address set forth on the signature page hereof.
(r)    The Purchaser acknowledges that the Company is entitled to rely upon this Agreement and the representations and warranties contained herein and is irrevocably authorized to produce this Agreement or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby.
3.    Representations, Warranties, Acknowledgments and Agreements of the Company.  The Company hereby represents, warrants, acknowledges and agrees as follows:
     (a)    The Company is a corporation duly incorporated and validly existing in good standing under the laws of the State of Nevada, and has the requisite corporate power and authority to own its properties and to carry on its business as now being conducted.  The Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing could not reasonably be expected to have a Material Adverse Effect.  As used in this Agreement, “Material Adverse Effect” means any material adverse effect on any of: (i) the business, properties, assets, operations, results of operations or financial condition of the entity, if any, taken as a whole, or (ii) the authority or ability of the entity to perform its obligations under the this Agreement.  
     (b)    The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.  The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company.  This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its 

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terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. 
     (c)    The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Company’s Articles of Incorporation or Bylaws, as amended through the date hereof, or (ii) conflict with, or constitute a default (or an event that 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 (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.
     (d)    The Securities have been duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens and encumbrances, other than restrictions on transfer under applicable securities laws.  The Company has reserved from its duly authorized capital stock the shares of Common Stock to be sold pursuant to this Agreement.
     (e)    No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement.  
4.    Indemnification by Purchaser.  The Purchaser shall indemnify and hold harmless the Company and each of its officers, directors, managers, controlling persons, employees, agents, affiliates, successors and assigns and any person acting on behalf of any of them (each a “Company Indemnified Party”), who is or may be a party or is or may be threatened to be made a party to any threatened, pending or completed action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, by reason of, arising from or in respect of the Purchaser’s breach or violation or threatened breach or violation of this Agreement (including, without limitation, any representations, warranties or covenants contained herein or therein) against any and all losses, liabilities and expense incurred by the Company or any other Company Indemnified Party, including, but not limited to, attorneys’ fees, judgments, fines and amounts paid in settlement.
5.    Indemnification by Company.  The Company shall indemnify and hold harmless the Purchaser and each of the Purchaser’s heirs, executors, administrators, successors, legal representatives, and permitted assigns (each a “Purchaser Indemnified Party”), who is or may be a party or is or may be threatened to be made a party to any threatened, pending or completed 

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action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, by reason of, arising from or in respect of the Company’s breach or violation or threatened breach or violation of this Agreement (including, without limitation, any representations, warranties or covenants contained herein or therein) against any and all losses, liabilities and expense incurred by the Purchaser or any other Purchaser Indemnified Party, including, but not limited to, attorneys’ fees, judgments, fines and amounts paid in settlement.
6.    Irrevocability: Binding Effect.  The Purchaser hereby acknowledges and agrees that this Agreement and the covenants contained herein are irrevocable by the Purchaser, except as required by applicable law, and that this Agreement shall survive the death or disability of the Purchaser and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives, and permitted assigns.  If the Purchaser is more than one person, the obligations of the Purchaser hereunder shall be joint and several and the agreements, representations, warranties, and acknowledgments herein shall be deemed to be made by and be binding upon each such person and such person’s heirs, executors, administrators, successors, legal representatives, and permitted assigns.
7.    Modification.  This Agreement shall not be modified or waived except by an instrument in writing signed by the party against whom any such modification or waiver is sought.
8.    Notices.  Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be made by certified mail, return receipt requested, or delivered against receipt to the party to whom it is to be given (a) if to the Company, at the address set forth on the first page of this Agreement, or (b) if to the Purchaser, at the address set forth on the signature page hereof (or, in either case, to such other address as the party shall have been in writing in accordance with the provisions of this Section 8).  Any notice or other communication given by certified mail shall be deemed given at the time of mailing thereof, except for a notice changing a party’s address which shall be deemed given at the time of receipt thereof.
9.    Assignability.  This Agreement and the rights, interests and obligations hereunder are not transferable or assignable by the Purchaser and the transfer or assignment of the Securities shall be made only in accordance with all applicable laws.
10.    Applicable Law.  This Agreement shall be governed and construed as to its validity, interpretation and effect by the laws of the State of Florida notwithstanding the choice of law rules of Florida or any other jurisdiction.  
11.    Consent to Jurisdiction: Service of Process; Prevailing Party.  Each party to this Agreement hereby irrevocably submits to the jurisdiction of the state or federal courts located in Palm Beach County, Florida in connection with any suit, action or other proceeding arising out of or relating to this Agreement and the transactions contemplated hereby, and hereby agree not to assert, by way of motion, as a defense, or otherwise in any such suit, action or proceeding that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced by such courts.  Each party shall be responsible for its own costs and expenses of any such suit, action or proceeding; provided, however, that the non-prevailing party shall reimburse the prevailing party’s actual reasonable costs and expenses (including, without limitation, attorneys’ fees) incurred in connection with such suit, action or  proceeding or any effort to enforce this Agreement.

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12.    Waiver of Jury Trial.  EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER HEREOF. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY EACH PARTY HERETO.
13.    Miscellaneous.
(a)    This Agreement constitutes the entire agreement between the Purchaser and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings, if any, relating to the subject matter hereof.  The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or provisions.
(b)    The Purchaser’s representations and warranties made in this Agreement shall survive the execution and delivery hereof and delivery of the Securities.
(c)    Subject to Section 11 hereof, each of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or others engaged by such party) in connection with this Agreement and the transactions contemplated hereby whether or not the transactions contemplated hereby are consummated.
(d)    This Agreement may be executed in one or more counterparts (including by facsimile signature) each of which shall be deemed an original, but all of which shall together constitute one and the same instrument.
(e)    Each provision of this Agreement shall be considered separable and if for any reason any provision or provisions hereof are determined to be invalid or contrary to applicable law, such invalidity or illegality shall not impair the operation of or affect the remaining portions of this Agreement.
(f)    Paragraph titles are for descriptive purposes only and shall not control or alter the meaning of this Agreement as set forth in the text.
{signature page follows}

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above. 

	
	
	PURCHASER

	

                  
Signature

                  
Print Name

                  

                  
Address

                  
Number of Shares to be Purchased

                  
Dollar Amount of Cash to be Applied to 
Payment of Purchase Price, if any

                  
Dollar Amount of Indebtedness Owed by Company 
to Purchaser to be Applied to Payment of 
Purchase Price, if any

	 

	COMPANY

	

By:                  

Name:                   

Title:                   

	 

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DM3\2561151.3

ANNEX A
PURCHASER SUITABILITY STANDARDS
(Check all that apply)

The Purchaser hereby represents and warrants to the Company that the Purchaser satisfies the criteria next to the box(es) checked below.

Accredited Investor Qualification 

		
	c 
	The Purchaser is natural person who had individual income of more than $200,000 in each of the most recent two years or joint income with his or her spouse in excess of $300,000 in each of the most recent two years and reasonably expects to reach that same income level for the current year (“income”, for purposes hereof, should be computed as follows: individual adjusted gross income, as reported (or to be reported) on a federal income tax return, increased by (1) any deduction of long-term capital gains under Section 1202 of the Internal Revenue Code   of 1986 (the “Code”), (2) any deduction for depletion under Section 611 et seq. of the Code, (3) any exclusion for interest under Section 103 of the Code and (4) any losses of a partnership as reported on Schedule E of Form 1040).

		
	c 
	The Purchaser is a natural person whose individual net worth (i.e., total assets in excess of total liabilities), or joint net worth with his or her spouse, will at the time of purchase of the Securities be in excess of $1,000,000.  The fair market value of a primary residence and the mortgage debt secured by such residence (up to the fair market value) must be excluded from the determination of an individual’s net worth; however, the amount of mortgage debt secured by the residence in excess of the value thereof should be considered a liability and deducted from the investor’s net worth.

		
	c 
	The Purchaser is a natural person who is a director or executive officer of the Company.

Non-U.S. Person Qualification

		
	c 
	The Purchaser is not a “U.S. person” as such term is defined in Regulation S (and reproduced below), and the Purchaser is acquiring the Securities for the Purchaser’s own account and is not acquiring the Securities for the account or benefit of a “U.S. person.” 

“U.S. person” means:

i.    Any natural person resident in the United States;
		
	ii.
	Any partnership or corporation organized or incorporated under the laws of the United States;

iii.    Any estate of which any executor or administrator is a U.S. person;
iv.    Any trust of which any trustee is a U.S. person;
v.    Any agency or branch of a foreign entity located in the United States;

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DM3\2561151.3

		
	vi.
	Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;

		
	vii.
	Any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and

viii.    Any partnership or corporation if:
A.    Organized or incorporated under the laws of any foreign jurisdiction; and
B.    Formed by a U.S. person principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a)) who are not natural persons, estates or trusts.

The following are not “U.S. persons”:

		
	i.
	Any discretionary account or similar account (other than an estate or trust) held for the benefit or account of a non-U.S. person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States;

		
	ii.
	Any estate of which any professional fiduciary acting as executor or administrator is a U.S. person if:

		
	A.
	An executor or administrator of the estate who is not a U.S. person has sole or shared investment discretion with respect to the assets of the estate; and

B.    The estate is governed by foreign law;

		
	iii.
	Any trust of which any professional fiduciary acting as trustee is a U.S. person, if a trustee who is not a U.S. person has sole or shared investment discretion with respect to the trust assets, and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. person;

		
	iv.
	An employee benefit plan established and administered in accordance with the law of a country other than the United States and customary practices and documentation of such country;

		
	v.
	Any agency or branch of a U.S. person located outside the United States if:

A.    The agency or branch operates for valid business reasons; and
		
	B.
	The agency or branch is engaged in the business of insurance or banking and is subject to substantive insurance or banking regulation, respectively, in the jurisdiction where located; and

		
	vi.
	The International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and their agencies, affiliates and pension plans, and any other similar international organizations, their agencies, affiliates and pension plans.

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DM3\2561151.3

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