Document:

USN Corporation 2005 Stock Incentive Plan

 Exhibit 10.11 
  
 USN CORPORATION 2005 STOCK INCENTIVE PLAN 
  
 1. Purpose. The purpose of the USN Corporation 2005 Stock Incentive Plan is to provide officers, other employees
and directors of, and consultants to, USN Corporation and any of its Subsidiaries an incentive (a) to enter into and remain in the service of the Company and its Subsidiaries, (b) to enhance the long-term performance of the Company and its
Subsidiaries, and (c) to acquire a proprietary interest in the success of the Company and its Subsidiaries.
  
 2. Definitions. Wherever the following capitalized terms are used in the Plan, they shall have the meanings specified below: 
  
 “Award” means an award of a Stock Option,
Stock Appreciation Right, Restricted Stock Award or Restricted Stock Unit Award, Performance Share Award or Performance Unit Award granted under the Plan. 
  
 “Award Agreement” means a written or electronic agreement entered into between the Company and a Participant setting
forth the terms and conditions of an Award granted to a Participant. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Cause” means termination of Participant’s employment for “cause” as defined in any employment or
severance agreement the Participant may have with the Company or a Subsidiary or, if no such agreement exists, unless otherwise provided in a particular Award Agreement, “cause” means (a) conviction or pleading guilty or no contest to
any crime (whether or not involving the Company or any of its Subsidiaries) constituting a felony in the jurisdiction involved; (b) engaging in any substantiated act involving moral turpitude; (c) engaging in any act which, in each case,
subjects, or if generally known would subject, the Company or any of its Subsidiaries to public ridicule or embarrassment; (d) material violation of the Company’s or any of its Subsidiaries’ policies, including, without limitation,
those relating to sexual harassment or the disclosure or misuse of confidential information; (e) serious neglect or misconduct in the performance of the grantee’s duties for the Company or any of its Subsidiaries or willful or repeated
failure or refusal to perform such duties; in each case as determined by the Committee, which determination will be final, binding and conclusive. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Committee” means the Compensation
Committee of the Board, or another committee of the Board appointed by the Board to administer the Plan. 
  
 “Company” means USN Corporation, a Colorado corporation. 
  
 “Date of Grant” means the date on which an Award under the Plan is made by the Committee,
or such later date as the Committee may specify to be the effective date of an Award. 

 “Disability” means termination of Participant’s employment for
“disability” as defined in any employment or severance agreement the Participant may have with the Company or a Subsidiary or, if no such agreement exists, unless otherwise provided in a particular Award Agreement, a Participant being
considered “disabled” within the meaning of Section 409A(a)(2)(C) of the Code. 
  
 “Eligible Person” means any person who is an employee or consultant of the Company or any Subsidiary (including any key
employee of an entity that develops products that are intended to be published or distributed by the Company or a Subsidiary) or any person to whom an offer of employment with the Company or any Subsidiary is extended, as determined by the
Committee, or any person who is a Nonemployee Director. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” of a Share as of a given date shall be the closing sales prices of the Shares on such date on the
principal national securities exchange on which such Shares are listed or admitted to trading, or, if such Shares are not so listed or admitted to trading, the average of the per Share closing bid price and per Share closing asked price on such date
as quoted on the NASDAQ National List, the NASDAQ Supplemental List or such other market in which such prices are regularly quoted, or, if there have been no published bid or asked quotations with respect to Shares on such date, the Fair Market
Value shall be the value established by the Committee in good faith, and, in the case of an Incentive Stock Option, in accordance with Section 422 of the Code. 
  
 “Incentive Stock Option” means a Stock Option granted under Section 6 hereof that is
intended to meet the requirements of Section 422 of the Code and the regulations thereunder. 
  
 “Nonemployee Director” means any member of the Board who is not an employee or officer of the Company. 
  
 “Nonqualified Stock Option” means a Stock
Option granted under Section 6 hereof that is not an Incentive Stock Option. 
  
 “Participant” means any Eligible Person who holds an outstanding Award under the Plan. 
  
 “Performance Share Award” means a
contractual right granted to an Eligible Person under Section 10 hereof representing notional unit interests equal in value to a Share that is forfeitable until the achievement of pre-established performance objectives over a performance
period. 
  
 “Performance Unit Award”
means a contractual right granted to an Eligible Person under Section 10 hereof representing notional unit interests equal to a pre-determined dollar amount that is forfeitable until the achievement of pre-established performance objectives
over a performance period. 
  

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 “Plan” means the USN Corporation 2005 Stock Incentive Plan as set forth
herein, as amended from time to time. 
  
 “Qualified Performance Award” means a Restricted Stock Award, Restricted Stock Unit Award, or Performance Share Award or Performance Unit Award intended to comply with Section 11 hereof. 
  
 “Restricted Stock Award” means a grant of
Shares to an Eligible Person under Section 8 hereof that are issued subject to such vesting and transfer restrictions as the Committee shall determine and set forth in an Award Agreement. 
  
 “Restricted Stock Unit Award” means a
contractual right granted to an Eligible Person under Section 9 hereof representing notional unit interests equal in value to a Share to be paid or distributed at such times, and subject to such conditions, as set forth in the Plan and the
applicable Award Agreement. 
  
 “Retirement” means termination of Participant’s employment by reason of “retirement” as defined in any employment or severance agreement the Participant may have with the Company or a Subsidiary or, if no
such agreement exists, unless otherwise provided in a particular Award Agreement, “retirement” means a termination of the Participant’s Service after the Participant reaches the age of 62. 
  
 “Service” means a Participant’s
employment or service with the Company or any Subsidiary or a Participant’s service as a Nonemployee Director with the Company, as applicable. 
  
 “Share” means a share of the Company’s common stock, par value $.0001, subject to adjustment as provided in
Section 4.3 hereof. 
  
 “Stock
Appreciation Right” means a contractual right granted to an Eligible Person under Section 7 hereof entitling such Eligible Person to receive a payment, representing the difference between the base price per share of the right and the
Fair Market Value of a Share, at such time, and subject to such conditions, as are set forth in the Plan and the applicable Award Agreement. 
  
 “Stock Option” means a contractual right granted to an Eligible Person under Section 6 hereof to purchase Shares at
such time and price, and subject to such conditions, as are set forth in the Plan and the applicable Award Agreement. 
  
 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company if, at the time as of which a determination is being made, each corporation other than the last corporation in the unbroken chain owns stock possessing fifty percent or more of the total combined voting power of all classes of stock in
another corporation in the chain. 
  

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 3. Administration. 
  
 3.1. Committee Members. The Plan shall be administered by a Committee comprised of no fewer than two members of
the Board; provided, however, that (a) with respect to any Award that is intended to satisfy the conditions of Rule 16b-3 under Exchange Act the term “Committee” shall refer to a committee of two or more “non-employee
directors” as determined for purposes of applying Exchange Act Rule 16b-3; and (b) with respect to any Award that is intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code,
the term “Committee” shall refer to a committee of two or more “outside directors” as determined for purposes of applying Section 162(m) of the Code. Subject to the provisions of Section 16 of the Exchange Act and
Section 162(m) of the Code, any power of the Committee may also be exercised by the Board. No member of the Committee shall be liable for any action or determination made in good faith by the Committee with respect to the Plan or any Award. In
the absence of a Committee, the Board will administer the Plan and all references to the “Committee” will be deemed to refer to the “Board”. 
  

3.2. Committee Authority. The Committee shall have such powers and authority as may be necessary or appropriate for the Committee to carry
out its functions as described in the Plan. Subject to the express limitations of the Plan, the Committee shall have authority in its sole discretion to determine the Eligible Persons to whom, and the time or times at which, Awards may be granted,
the number of shares, units or other rights subject to each Award, the exercise, base or purchase price of an Award (if any), the time or times at which an Award will become vested, exercisable or payable, the performance goals and other conditions
affecting an Award, the duration of the Award, and all other terms of the Award. The Committee shall also have discretionary authority to interpret the Plan, to make factual determinations under the Plan, and to make all other determinations
necessary or advisable for Plan administration, including, without limitation, to correct any defect, to supply any omission or to reconcile any inconsistency in the Plan or any Award Agreement. The Committee may prescribe, amend, and rescind rules
and regulations relating to the Plan. The Committee’s determinations under the Plan need not be uniform and may be made by the Committee selectively among Participants and Eligible Persons, whether or not such persons are similarly situated.
The Committee shall consider such factors as it deems relevant in making its interpretations, determinations and actions under the Plan including, without limitation, the recommendations or advice of any officer or employee of the Company or such
attorneys, consultants, accountants or other advisors as it may select. All interpretations, determinations and actions by the Committee shall be final, conclusive, and binding upon all parties. 
  
 3.3. Delegation of Authority. The Committee may by resolution
authorize one or more officers of the Company to perform any or all things that the Committee is authorized and empowered to do or perform under the Plan; provided, however, that the resolution so authorizing such officer or officers shall specify
the total number of Awards (if any) such officer or officers may award pursuant to such delegated authority, and any such Award shall be subject to the form of Award Agreement theretofore approved by the Committee. In no event shall any such
delegation of authority be permitted with respect to Awards to any members of the Board or to any Eligible Person who is subject to Rule 16b-3 under the Exchange Act or Section 162(m) of the Code. The Committee shall also be permitted to
delegate, to any appropriate officer or employee of the Company, responsibility for performing certain ministerial functions under the 

  

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Plan. In the event that the Committee’s authority is delegated to officers or employees in accordance with the foregoing, all provisions of the Plan
relating to the Committee shall be interpreted in a manner consistent with the foregoing by treating any such reference as a reference to such officer or employee for such purpose. Any action undertaken in accordance with the Committee’s
delegation of authority hereunder shall have the same force and effect as if such action was undertaken directly by the Committee and shall be deemed for all purposes of the Plan to have been taken by the Committee. 
  
 3.4. Grants to Nonemployee Directors. Any Awards or formula for
granting Awards under the Plan made to Nonemployee Directors shall be approved by the Board. With respect to awards to such directors, all rights, powers and authorities vested in the Committee under the Plan shall instead be exercised by the Board,
and all provisions of the Plan relating to the Committee shall be interpreted in a manner consistent with the foregoing by treating any such reference as a reference to the Board for such purpose. 
  
 4. Shares Subject to the Plan. 
  
 4.1. Maximum Share Limitations. Subject to adjustment pursuant to
Section 4.3 hereof, the maximum aggregate number of Shares that may be issued under the Plan shall be 5,000,000 shares. Shares issued and sold under the Plan may be either authorized but unissued shares or shares held in the Company’s
treasury. To the extent that any Award involving the issuance of Shares is forfeited, cancelled, returned to the Company for failure to satisfy vesting requirements or other conditions of the Award, or otherwise terminates without an issuance of
Shares being made thereunder, the Shares covered thereby will no longer be counted against the maximum share limitations and may again be made subject to Awards under the Plan pursuant to such limitations. In addition, awards that are settled in
cash and not in Shares shall not be counted against the maximum share limitations. 
  
 4.2. Individual Participant Limitations. The maximum number of Shares that may be subject to Stock Options, Stock Appreciation Rights and Qualified Performance Awards denominated in shares in the aggregate
granted to any one Participant during any calendar year shall be 1,000,000 shares. The maximum payment with respect to Qualified Performance Awards denominated in cash in the aggregate granted to any one Participant during any calendar year shall be
$1,250,000. The foregoing limitations shall each be applied on an aggregate basis taking into account Awards granted to a Participant under the Plan as well as awards of the same type granted to a Participant under any other equity-based
compensation plan of the Company or any Subsidiary. 
  
 4.3.
Adjustments. If there shall occur any increase or reduction in the number of Shares, or any change (including, but not limited to, in the case of a spin-off, dividend or other distribution in respect of Shares, a change in value) in the
outstanding Shares or exchange of Shares for a different number or kind of shares or other securities of the Company or another corporation, by reason of any recapitalization, reclassification, stock split, reverse stock split, dividend or
distribution of securities, property or cash (other than regular, quarterly cash dividends), or other distribution with respect to Shares, or any merger, reorganization, consolidation, combination, change in control, spin-off or other similar
corporate change, or any other change affecting the Shares, the Committee may, in the manner and to the extent that it 

  

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deems appropriate and equitable to the Participants and consistent with the terms of the Plan, cause an adjustment to be made in (a) the maximum number
and kind of shares provided in Section 4.1 and Section 4.2 hereof, (b) the number and kind of Shares, units, or other rights subject to then outstanding Awards, (c) the exercise or base price for each share or unit or other right
subject to then outstanding Awards, and (d) any other terms of an Award that are affected by the event, which adjustments, in the case of clauses (b), (c) and (d), need not be uniform as between different Awards or different types of
Awards. Any such adjustments may be designed to comply with the requirements of Section 409A of the Code and, in the case of Incentive Stock Options, Section 424 of the Code. Without limiting the generality of the foregoing, in the event
there shall be any change in the number or kind of outstanding Shares, or any stock or other securities into which such Shares shall have been changed, or for which it shall have been exchanged, by reason of a change in control, merger,
consolidation or otherwise, the Committee may, in its sole discretion, (i) provide for the assumption or substitution of, or adjustment to, each outstanding Award; (ii) accelerate the vesting of and terminate any restrictions on
outstanding Awards; (iii) provide for cancellation of accelerated Awards that are not exercised within a time prescribed by the Administrator; or (iv) provide for the cancellation of any outstanding Awards in exchange for a cash payment to
the holders thereof. No right to purchase fractional shares shall result from any adjustment in Awards pursuant to this Section 4.3. In case of any such adjustment, the Shares subject to the Award shall be rounded down to the nearest whole
share. The Company shall notify Participants holding Awards subject to any adjustments pursuant to this Section 4.3 of such adjustment, but (whether or not notice is given) such adjustment shall be effective and binding for all purposes of the
Plan. 
  
 5. Participation and Awards. 
  
 5.1. Designations of Participants. All Eligible Persons are
eligible to be designated by the Committee to receive Awards and become Participants under the Plan. The Committee has the authority, in its discretion, to determine and designate from time to time those Eligible Persons who are to be granted
Awards, the types of Awards to be granted and the number of Shares or units subject to Awards granted under the Plan. In selecting Eligible Persons to be Participants and in determining the type and amount of Awards to be granted under the Plan, the
Committee shall consider any and all factors that it deems relevant or appropriate. 
  
 5.2. Determination of Awards. The Committee shall determine the terms and conditions of all Awards granted to Participants in accordance with its authority under Section 3.2 hereof. An Award may
consist of one type of right or benefit hereunder or of two or more such rights or benefits granted in tandem or in the alternative. In the case of any fractional share or unit resulting from the grant, vesting, payment or crediting of dividends or
dividend equivalents under an Award, the Committee shall have the discretionary authority to (a) disregard such fractional share or unit, (b) round such fractional share or unit to the nearest lower or higher whole share or unit, or
(c) convert such fractional share or unit into a right to receive a cash payment. To the extent deemed necessary by the Committee, an Award shall be evidenced by an Award Agreement as described in Section 13.1 hereof. 
  

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 6. Stock Options. 
  
 6.1. Grant of Stock Options. A Stock Option may be granted to any Eligible Person selected by the Committee.
Subject to the provisions of Section 6.8 hereof and Section 422 of the Code, each Stock Option shall be designated, in the discretion of the Committee, as an Incentive Stock Option or as a Nonqualified Stock Option. 
  
 6.2. Exercise Price. The exercise price per share of a Stock
Option shall not be less than 100 percent of the Fair Market Value of a Share on the Date of Grant. 
  
 6.3. Vesting of Stock Options. The Committee shall in its discretion prescribe the time or times at which, or the conditions upon which, a
Stock Option or portion thereof shall become vested and/or exercisable, and may accelerate the vesting or exercisability of any Stock Option at any time. The requirements for vesting and exercisability of a Stock Option may be based on the continued
Service of the Participant with the Company or its Subsidiaries for a specified time period (or periods) or on the attainment of specified performance goals established by the Committee in its discretion. 
  
 6.4. Term of Stock Options. The Committee shall in its discretion
prescribe in an Award Agreement the period during which a vested Stock Option may be exercised, provided that the maximum term of a Stock Option shall be ten years from the Date of Grant. 
  
 6.5. Termination of Service. Subject to Section 6.8 hereof with respect to Incentive Stock Options, the
Stock Option of any Participant whose Service with the Company or one of its Subsidiaries is terminated for any reason shall terminate on the earlier of (a) the date that the Stock Option expires in accordance with its terms or (b) unless
otherwise provided in an Award Agreement, the expiration of the applicable time period following termination of Service, in accordance with the following: (i) 12 months if Service ceased due to death, Disability or Retirement, (ii) 90 days
if Service ceased as a result of a termination by the Company without Cause or (iii) 30 days if Service ceased for any other reason; provided that, in the event of a termination for Cause such Participant’s right to any further payments,
vesting or exercisability with respect to any Award shall be forfeited in its entirety in accordance with Section 12.2. The Committee shall have authority to determine in each case whether an authorized leave of absence shall be deemed a
termination of Service for purposes hereof, as well as the effect of a leave of absence on the vesting and exercisability of a Stock Option. Unless otherwise provided by the Committee, if an entity ceases to be a Subsidiary of, or to provide
services (including developing products) to, the Company or otherwise ceases to be qualified under the Plan or if all or substantially all of the assets of a Subsidiary of the Company or an entity that provides services to the Company are conveyed
(other than by encumbrance), such cessation or action, as the case may be, shall be deemed for purposes hereof to be a termination of the Service of all of the employees of the Subsidiary or other entity (unless at the time of the event they become
employees of the Company). 
  
 6.6. Stock Option
Exercise. Subject to such terms and conditions as shall be specified in an Award Agreement, a Stock Option may be exercised in whole or in part at any time during the term thereof by notice in the form required by the Company, together with
payment of the aggregate exercise price and applicable withholding tax. Payment of the exercise 

  

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price shall be made in the manner set forth in the Award Agreement, which unless otherwise provided by the Committee, may include: (a) in cash or by
cash equivalent acceptable to the Committee, (b) by payment in Shares valued at the Fair Market Value of such shares on the date of exercise, (c) to the extent permitted by law, through an open-market, broker-assisted sales transaction
pursuant to which the Company is promptly delivered the amount of proceeds necessary to satisfy the exercise price, (d) by a combination of the methods described above or (e) by such other method as may be approved by the Committee and set
forth in the Award Agreement. 
  
 6.7. Limited Transferability
of Nonqualified Stock Options. All Stock Options shall be nontransferable except (a) upon the Participant’s death, in accordance with Section 13.2 hereof or (b) in the case of Nonqualified Stock Options only, for the
transfer of all or part of the Stock Option to a Participant’s “family member” (as defined for purposes of the Form S-8 registration statement under the Securities Act of 1933), as may be approved by the Committee in its discretion.
The transfer of a Nonqualified Stock Option may be subject to such terms and conditions as the Committee may in its discretion impose from time to time. Subsequent transfers of a Nonqualified Stock Option shall be prohibited other than in accordance
with Section 13.2 hereof. 
  
 6.8. Additional Rules for
Incentive Stock Options. Notwithstanding anything to the contrary in this Section 6, in the case of the grant of a Stock Option intending to qualify as an Incentive Stock Option, if the Participant owns stock possessing more than 10%
of the combined voting power of all classes of stock of the Company (a “10% Stockholder”), the purchase price of such Stock Option must be at least 110% of the Fair Market Value of a Share on the date of grant and the Option must expire
within a period of not more than five years from the date of grant. Notwithstanding anything in this Section 6 to the contrary, Stock Options designated as Incentive Stock Options shall not be eligible for treatment under the Code as Incentive
Stock Options to the extent that either (a) the aggregate Fair Market Value of the Shares (determined as of the time of grant) with respect to which such Stock Options are exercisable for the first time by the Participant during any calendar
year (under all plans of the Company and any Subsidiary) exceeds $100,000, taking Stock Options into account in the order in which they were granted, or (b) such Stock Options remain exercisable and unexercised for more than 3 months following
a termination of employment (or such other period of time provided in Section 422 of the Code). 
  
 6.9. Repricing Prohibited. Subject to the anti-dilution adjustment provisions contained in Section 4.3 hereof, without the prior approval
of the Company’s stockholders, neither the Committee nor the Board shall cause the cancellation, substitution or amendment of a Stock Option that would have the effect of reducing the exercise price of a Stock Option previously granted under
the Plan, or otherwise approve any modification to a Stock Option that would be treated as a “repricing” under any then applicable rules, regulations or listing requirements. 
  
 7. Stock Appreciation Rights. 
  
 7.1. Grant of Stock Appreciation Rights. A Stock Appreciation Right may be granted to any Eligible Person
selected by the Committee. Stock Appreciation Rights shall be exercisable or payable at such time or times and upon such conditions as may be approved by the 

  

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Committee, provided that the Committee may accelerate the exercisability or payment of a Stock Appreciation Right at any time. 
  
 7.2. Freestanding Stock Appreciation Rights. A Stock Appreciation
Right may be granted without any related Stock Option (a “freestanding SAR”) and may be subject to such vesting and exercisability requirements as are specified by the Committee and described in an Award Agreement. Such vesting and
exercisability requirements may be based on the continued Service of the Participant with the Company or its Subsidiaries for a specified time period (or periods) or on the attainment of specified performance goals established by the Committee in
its discretion. A freestanding SAR will be exercisable or payable at such time or times as determined by the Committee, provided that the maximum term of a freestanding SAR shall be ten years from the Date of Grant. The base price of a freestanding
SAR shall be determined by the Committee in its sole discretion; provided, however, that the base price per share of any such freestanding SAR shall not be less than 100 percent of the Fair Market Value of a Share on the Date of Grant. 

 
 7.3. Tandem Stock Appreciation Rights. A Stock
Appreciation Right may be granted in tandem with a Stock Option (a “tandem SAR”), either at the time of grant or at any time thereafter during the term of the Stock Option. A tandem SAR will entitle the holder to elect, as to all or any
portion of the number of shares subject to such Stock Option/Stock Appreciation Right, to exercise either the Stock Option or the Stock Appreciation Right, resulting in the reduction of the corresponding number of shares subject to the right so
exercised as well as the tandem right not so exercised. A tandem SAR shall have a base price per Share equal to the per Share exercise price of the related Stock Option, will become vested and exercisable at the same time or times that the related
Stock Option becomes vested and exercisable, and will expire no later than the time at which the related Stock Option expires. 
  
 7.4. Payment of Stock Appreciation Rights. A Stock Appreciation Right will entitle the holder, upon exercise or other payment of the Stock
Appreciation Right, as applicable, to receive an amount determined by multiplying: (i) the excess of the Fair Market Value of a Share on the date of exercise or payment of the Stock Appreciation Right over the base price of such Stock
Appreciation Right, by (ii) the number of Shares as to which such Stock Appreciation Right is exercised or paid. Payment of the amount determined under the foregoing may be made, as approved by the Committee and set forth in the Award
Agreement, in Shares valued at their Fair Market Value on the date of exercise or payment, in cash, or in a combination of Shares and cash, subject to applicable tax withholding requirements. 
  
 7.5. Repricing Prohibited. Subject to the anti-dilution
adjustment provisions contained in Section 4.3 hereof, without the prior approval of the Company’s stockholders, evidenced by a majority of votes cast, neither the Committee nor the Board shall cause the cancellation, substitution or
amendment of a Stock Appreciation Right that would have the effect of reducing the base price of such a Stock Appreciation Right previously granted under the Plan, or otherwise approve any modification to such a Stock Appreciation Right that would
be treated as a “repricing” under the then applicable rules, regulations or listing requirements. 
  

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 8. Restricted Stock Awards. 
  
 8.1. Grant of Restricted Stock Awards. A Restricted Stock Award may be granted to any Eligible Person
selected by the Committee. The Committee may require the payment by the Participant of a specified purchase price in connection with any Restricted Stock Award. 
  

8.2. Vesting Requirements. The restrictions imposed on shares granted under a Restricted Stock Award shall lapse in accordance with the
vesting requirements specified by the Committee in the Award Agreement. Such vesting requirements may be based on the continued Service of the Participant with the Company or its Subsidiaries for a specified time period (or periods) or on the
attainment of specified performance goals established by the Committee in its discretion, which may include Qualifying Performance Criteria. If the vesting requirements of a Restricted Stock Award shall not be satisfied, the Award shall be forfeited
and the Shares subject to the Award shall be returned to the Company. Notwithstanding the foregoing, the Committee may accelerate the vesting of a Restricted Stock Award at any time. 
  
 8.3. Restrictions. Shares granted under any Restricted Stock Award may not be transferred, assigned or
subject to any encumbrance, pledge, or charge until all applicable restrictions are removed or have expired. Failure to satisfy any applicable restrictions shall result in the subject shares of the Restricted Stock Award being forfeited and returned
to the Company. The Committee may require in an Award Agreement that certificates representing the shares granted under a Restricted Stock Award bear a legend making appropriate reference to the restrictions imposed, and that certificates
representing the shares granted or sold under a Restricted Stock Award will remain in the physical custody of an escrow holder until all restrictions are removed or have expired. 
  
 8.4. Rights as Stockholder. Subject to the foregoing provisions of this Section 8 and the applicable
Award Agreement, the Participant shall have all rights of a stockholder with respect to the shares granted to the Participant under a Restricted Stock Award, including the right to vote the shares and receive all dividends and other distributions
paid or made with respect thereto. The Committee may provide in an Award Agreement that dividends and distributions with regard to unvested Shares will be held by the Company or an escrow agent and paid to the Participant only at the times of
vesting or other payment of the Restricted Stock Award. 
  
 8.5. Section 83(b) Election. If a Participant makes an election pursuant to Section 83(b) of the Code with respect to a Restricted Stock Award, the Participant shall file, within 30 days following the Date of
Grant, a copy of such election with the Company and with the Internal Revenue Service, in accordance with the regulations under Section 83 of the Code. The Committee may provide in an Award Agreement that the Restricted Stock Award is
conditioned upon the Participant’s making or refraining from making an election with respect to the Award under Section 83(b) of the Code. 
  
 8.6. Qualified Performance Award. To the extent a Restricted Stock Award is designated as a Qualified Performance Award, it
shall be subject to the restrictions set forth in Section 11. 
  

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 9. Restricted Stock Unit Awards. 
  
 9.1. Grant of Restricted Stock Unit Awards. A Restricted Stock Unit Award may be granted to any Eligible
Person selected by the Committee. The value of each Restricted Stock Unit will be equal to the Fair Market Value of a Share on the applicable date or time period of determination, as specified by the Committee. A Restricted Stock Unit Award shall be
subject to such restrictions and conditions as the Committee shall determine. A Restricted Stock Unit Award may be granted together with a dividend equivalent right with respect to the Shares subject to the Award, which may be accumulated and may be
deemed reinvested in additional stock units, as determined by the Committee in its discretion. 
  
 9.2. Vesting Requirements. On the Date of Grant, the Committee shall in its discretion determine any vesting requirements with respect to a Restricted Stock Unit Award, which shall be set forth in the
Award Agreement. Such vesting requirements may be based on the continued Service of the Participant with the Company or its Subsidiaries for a specified time period (or periods) or on the attainment of specified performance goals established by the
Committee in its discretion, which may include Qualifying Performance Criteria. Notwithstanding the foregoing, the Committee may accelerate the vesting of a Restricted Stock Unit Award at any time. A Restricted Stock Unit Award may also be granted
on a fully vested basis, with a deferred payment date. 
  
 9.3. Payment of Restricted Stock Unit Awards. A Restricted Stock Unit Award shall become payable to a Participant at the time or times determined by the Committee and set forth in the Award Agreement, which may be upon or
following the vesting of the Award. Payment of a Restricted Stock Unit Award may be made, at the discretion of the Committee, in cash or in Shares, or in a combination thereof. Any cash payment of a Restricted Stock Unit Award shall be made based
upon the Fair Market Value of a Share, determined on such date or over such time period as determined by the Committee. 
  
 9.4. No Rights as Stockholder. The Participant shall not have any rights as a stockholder with respect to the shares subject to a
Restricted Stock Unit Award until such time as Shares are delivered to the Participant pursuant to the terms of the Award Agreement. 
  
 9.5. Qualified Performance Award. To the extent a Restricted Stock Unit Award is designated as a Qualified Performance Award, it shall
be subject to the restrictions set forth in Section 11. 
  
 10. Performance Awards. 
  
 10.1. Grant
of Performance Awards. Performance Share and Performance Unit Awards (collectively, “Performance Awards”) may be granted to any Eligible Person selected by the Committee. Performance Awards shall be subject to such restrictions
and conditions as the Committee shall determine. 
  
 10.2.
Vesting Requirements. On the Date of Grant, the Committee shall in its discretion determine any vesting requirements with respect to a Performance Award, which shall be set forth in the Award Agreement, provided that the Committee may
accelerate the vesting of a Performance Award at any time. Vesting requirements may be based on the continued Service 

  

 11 

 
of the Participant with the Company or its Subsidiaries for a specified time period (or periods), as well as on the attainment of specified performance goals
established by the Committee in its discretion, which may include Qualifying Performance Criteria. The Committee may provide that if performance relative to the performance goals exceeds targeted levels, then the number of Performance Awards earned
shall be a multiple (e.g., 150%) of those that would be earned for target performance. 
  
 10.3. Payment of Performance Awards. A Performance Award shall become payable to a Participant at the time or times determined by the Committee and set forth in the Award Agreement, which may be
upon or following the vesting of the Award. Payment of a Performance Award may be made, at the discretion of the Committee, in cash or in Shares, or in a combination thereof. 
  
 10.4. No Rights as Stockholder. The Participant shall not have any rights as a stockholder with respect
to the shares subject to a Performance Share Award until such time as Shares are delivered to the Participant pursuant to the terms of the Award Agreement. 
  
 10.5. Qualified Performance Award. To the extent a Performance Award is designated as a Qualified Performance Award, it shall be subject to
the restrictions set forth in Section 11. 
  
 11.
Qualified Performance Awards. 
  
 11.1. Designation
as Qualified Performance Award. The Committee may designate whether any Restricted Stock, Restricted Stock Unit or Performance Award granted to an employee is intended to qualify as “performance-based compensation”, within the
meaning of Section 162(m) of the Code. 
  
 11.2.
Performance Measures. Any Award (or the lapse of restrictions on an Award) designated as intended to be performance-based compensation shall be, to the extent required by Section 162(m) of the Code, either (a) conditioned upon the
achievement of one or more Qualifying Performance Criteria or (b) granted based upon the achievement of one or more Qualifying Performance Criteria. For purposes of this Plan, the term “Qualifying Performance Criteria” shall mean any
one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and
measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group, in each case as specified by the Committee:
(i) cash flow (before or after dividends), (ii) earnings (including earnings per share, earnings before interest and taxes and earnings before interest, taxes, depreciation and amortization), (iii) stock price, (iv) return on
equity or investment, (v) total stockholder return or total market value (vi) return on capital (including return on total capital or return on invested capital, and based on earnings or cash flow), (vii) return on assets or net
assets, (viii) market capitalization, (ix) market share, (x) economic value added, (xi) debt leverage (debt to capital), (xii) revenue, (xiii) income or net income (before or after taxes), (xiv) adjusted net income
after capital charge, (xv) operating income, (xvi) operating profit or net operating profit, (xvii) operating margin or profit margin, (xviii) return on operating revenue, (xix) cash from operations, (xx) operating
ratio, (xxi) operating revenue, or (xxii) customer 

  

 12 

 
service. To the extent consistent with Section 162(m) of the Code, the Committee may appropriately adjust any evaluation of performance under a
Qualifying Performance Criteria to exclude any of the following events that occurs during a performance period: (A) asset write-downs, (B) litigation, claims, judgments or settlements, (C) the effect of changes in tax law, accounting
principles or other such laws or provisions affecting reported results, (D) accruals for reorganization and restructuring programs and (E) any extraordinary, unusual, non-recurring or non-comparable items (1) as described in
Accounting Principles Board Opinion No. 30, (2) as described in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s Annual Report to stockholders for the applicable
year, or (3) publicly announced by the Company in a press release or conference call relating to the Company’s results of operations or financial condition for a completed quarterly or annual fiscal period. 
  
 11.3. Additional Requirements. Any Restricted Stock,
Restricted Stock Unit or Performance Award that is intended to qualify as “performance-based compensation” shall also be subject to the following: 
  
 (a) No later than the earlier of (i) 90 days following the commencement of each performance period and (ii) the day on
which 25% of the performance period has elapsed (or such other time as may be required or permitted by Section 162(m) of the Code), the Committee shall, in writing, (A) grant a target number of shares or units, (B) select the
performance goal or goals applicable to the performance period and (C) specify the relationship between performance goals and the number of shares or units that may be earned by a Participant for such performance period. The performance goals
shall satisfy the requirements in Section 162(m) of the Code for “qualified performance-based compensation,” including the requirement that the achievement of the goals be substantially uncertain at the time they are established and
that the goals be established in such a way that a third party with knowledge of the relevant facts could determine whether and to what extent the performance goals have been met. 
  
 (b) Following the completion of each performance period, the Committee shall certify in writing
whether the applicable performance targets have been achieved and the number of units or shares, if any, earned by a Participant for such performance period. 
  

(c) In determining the number of units or shares earned by a Participant for a given performance period, the Committee shall
have the right to reduce (but not increase) the amount earned at a given level of performance to take into account additional factors that the Committee may deem relevant. 
  
 12. Forfeiture Events. 
  
 12.1. General. The Committee may specify in an Award Agreement at the time of the Award that the Participant’s rights, payments
and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such
events may include, but shall not be limited to, violation of material Company 

  

 13 

 
policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant
that is detrimental to the business or reputation of the Company or its Subsidiaries. 
  
 12.2. Termination for Cause. If a Participant’s employment with the Company or any Subsidiary shall be terminated for Cause, such Participant’s right to any further payments, vesting or
exercisability with respect to any Award shall be forfeited in its entirety. 
  
 13. General Provisions. 
  
 13.1. Award Agreement. To the extent deemed necessary by the Committee, an Award under the Plan shall be evidenced by an Award Agreement in a written or electronic form. The Award Agreement shall be subject to and
incorporate, by reference or otherwise, all of the applicable terms and conditions of the Plan, and may also set forth other terms and conditions applicable to the Award as determined by the Committee consistent with the limitations of the Plan. The
grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in the Plan as being applicable to such type of Award (or to all Awards) or
as are expressly set forth in the Award Agreement. The Committee need not require the execution of an Award Agreement by a Participant, in which case, acceptance of the Award by the Participant shall constitute agreement by the Participant to the
terms, conditions, restrictions and limitations set forth in the Plan and the Award Agreement as well as the administrative guidelines of the Company in effect from time to time. 
  
 13.2. No Assignment or Transfer; Beneficiaries. Except as provided in Section 6.7 hereof, Awards
under the Plan shall not be assignable or transferable by the Participant, except by will or by the laws of descent and distribution, and shall not be subject in any manner to assignment, alienation, pledge, encumbrance or charge. Notwithstanding
the foregoing, the Committee may provide in an Award Agreement that the Participant shall have the right to designate a beneficiary or beneficiaries who shall be entitled to any rights, payments or other benefits specified under an Award following
the Participant’s death. During the lifetime of a Participant, an Award shall be exercised only by such Participant or such Participant’s guardian or legal representative. In the event of a Participant’s death, an Award may to the
extent permitted by the Award Agreement be exercised by the Participant’s beneficiary as designated by the Participant in the manner prescribed by the Committee or, in the absence of an authorized beneficiary designation, by the legatee of such
Award under the Participant’s will or by the Participant’s estate in accordance with the Participant’s will or the laws of descent and distribution, in each case in the same manner and to the same extent that such Award was
exercisable by the Participant on the date of the Participant’s death. 
  
 13.3. Deferrals of Payment. The Committee may, in an Award Agreement or otherwise, provide for the deferred receipt of payment of cash or delivery of Shares that would otherwise be due to the
Participant by virtue of the satisfaction of vesting or other conditions with respect to a Restricted Stock, Restricted Stock Unit or Performance Award. If any such deferral is to be permitted by the Committee, the Committee shall establish rules
and procedures relating to such deferral in a manner intended to comply with the requirements of Section 409A of the Code, including, without limitation, the time when an election to defer may be made, the 

  

 14 

 
time period of the deferral and the events that would result in payment of the deferred amount, the interest or other earnings attributable to the deferral
and the method of funding, if any, attributable to the deferred amount. Notwithstanding anything herein to the contrary, in no event will any deferral of the delivery of Shares or any other payment with respect to any Award be allowed if the
Committee determines, in its sole discretion, that the deferral would result in the imposition of the additional tax under Section 409A(a)(1)(B) of the Code. 
  
 13.4. Rights as Stockholder. A Participant shall have no rights as a holder of Shares with respect to any
unissued securities covered by an Award until the date the Participant becomes the holder of record of such securities. Except as provided in Section 4.3 hereof, no adjustment or other provision shall be made for dividends or other stockholder
rights, except to the extent that the Award Agreement provides for dividend payments or dividend equivalent rights. 
  
 13.5. Employment or Service. Nothing in the Plan, in the grant of any Award or in any Award Agreement shall confer upon any Eligible
Person any right to continue in the Service of the Company or any of its Subsidiaries, or interfere in any way with the right of the Company or any of its Subsidiaries to terminate the Participant’s employment or other service relationship for
any reason at any time. 
  
 13.6. Securities
Laws. No Shares will be issued or transferred pursuant to an Award unless and until all then applicable requirements imposed by Federal and state securities and other laws, rules and regulations and by any regulatory agencies having
jurisdiction, and by any exchanges or markets upon which the Shares may be listed, have been fully met. As a condition precedent to the issuance of shares pursuant to the grant or exercise of an Award, the Company may require the Participant to take
any reasonable action to meet such requirements. The Committee may impose such conditions on any Shares aresuable under the Plan as it may deem advisable, including, without limitation, restrictions in order to ensure compliance with the Securities
Act of 1933, as amended, the requirements of any exchange or market upon which such shares of the same class are then listed, and any blue sky or other securities laws applicable to such shares. The Committee may also require the Participant to
represent and warrant at the time of issuance or transfer that the Shares are being acquired only for investment purposes and without any current intention to sell or distribute such shares. 
  
 13.7. Tax Withholding. The Participant shall be
responsible for payment of any taxes or similar charges required by law to be withheld from an Award or an amount paid in satisfaction of an Award, which shall be paid by the Participant on or prior to the payment or other event that results in
taxable income in respect of an Award. The Award Agreement may specify the manner in which the withholding obligation shall be satisfied with respect to the particular type of Award, which may include procedures to permit or require a Participant to
satisfy such obligation in whole or in part (but only up to the statutory minimum) by having the Company withhold Shares from the shares to which the Participant is entitled. The number of shares to be withheld shall have a Fair Market Value as of
the date that the amount of tax to be withheld is determined as nearly equal as possible to (but not exceeding) the amount of such obligations being satisfied. Notwithstanding the foregoing, the Company, in its sole discretion, may withhold all such
required taxes from any amount otherwise payable to a Participant. Notwithstanding anything contained in the Plan or any Award Agreement to the contrary, a 

  

 15 

 
Participant’s satisfaction of any tax-withholding requirements will be a condition precedent to the Company’s obligation to issue Shares or make
payments to that Participant as may otherwise be provided and to the termination of any restrictions on transfer related to the circumstance or event that results in the tax-withholding requirement. 
  
 13.8. Unfunded Plan. The adoption of the Plan and any
reservation of Shares or cash amounts by the Company to discharge its obligations hereunder shall not be deemed to create a trust or other funded arrangement. Except upon the issuance of Shares pursuant to an Award, any rights of a Participant under
the Plan shall be those of a general unsecured creditor of the Company, and neither a Participant nor the Participant’s permitted transferees or estate shall have any other interest in any assets of the Company by virtue of the Plan.
Notwithstanding the foregoing, the Company shall have the right to implement or set aside funds in a grantor trust, subject to the claims of the Company’s creditors or otherwise, to discharge its obligations under the Plan. 
  
 13.9. Other Compensation and Benefit Plans. The adoption
of the Plan shall not affect any other share incentive or other compensation plans in effect for the Company or any Subsidiary, nor shall the Plan preclude the Company from establishing any other forms of share incentive or other compensation or
benefit program for employees of the Company or any Subsidiary. The amount of any compensation deemed to be received by a Participant pursuant to an Award shall not constitute includable compensation for purposes of determining the amount of
benefits to which a Participant is entitled under any other compensation or benefit plan or program of the Company or a Subsidiary, including, without limitation, under any pension or severance benefits plan, except to the extent specifically
provided by the terms of any such plan. 
  
 13.10. Plan
Binding on Transferees. The Plan shall be binding upon the Company, its transferees and assigns, each Participant, and each Participant’s executor, administrator and permitted transferees and beneficiaries. 
  
 13.11. Severability. If any provision of the Plan or any
Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall
remain enforceable in any other jurisdiction. 
  
 13.12.
Foreign Jurisdictions. The Committee may adopt, amend and terminate such arrangements and grant such Awards, not inconsistent with the intent of the Plan, as it may deem necessary or desirable to comply with any tax, securities,
regulatory or other laws of jurisdictions outside the United States of America with respect to Awards that may be subject to such laws. The terms and conditions of such Awards may vary from the terms and conditions that would otherwise be required
by the Plan solely to the extent the Committee deems necessary for such purpose. Moreover, the Board may approve such supplements to or amendments, restatements or alternative versions of the Plan, not inconsistent with the intent of the Plan, as it
may consider necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in effect for any other purpose. 
  
 13.13. Substitute Awards in Corporate Transactions. Nothing contained in the Plan shall be construed to limit the right of the
Committee to grant Awards under the Plan in 

  

 16 

 
connection with the acquisition, whether by purchase, merger, consolidation or other corporate transaction, of the business or assets of any corporation or
other entity. Without limiting the foregoing, the Committee may grant Awards under the Plan to an employee or director of another corporation who becomes an Eligible Person by reason of any such corporate transaction in substitution for awards
previously granted by such corporation or entity to such. The terms and conditions of the substitute Awards may vary from the terms and conditions that would otherwise be required by the Plan solely to the extent the Committee deems necessary for
such purpose. 
  
 13.14. No Fiduciary
Relationship. Nothing in the Plan and no action taken pursuant to the Plan, will create a fiduciary relationship between the Company, its Directors or officers or the Committee, on the one hand, and the Participant or any other person or
entity, on the other. 
  
 13.15. Governing
Law. The Plan and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Colorado, without reference to the principles of conflicts of laws, and to applicable Federal securities laws.

  
 13.16. Employment and Other Agreements. Any
provision in a written employment, severance or other agreement providing accelerated vesting or other protective provisions applicable to types of Awards granted under the Plan will apply to Awards under the Plan unless the Award Agreement relating
to a particular Award provides otherwise. 
  
 13.17.
Notices. All notices under the Plan must be in writing or delivered electronically, if to the Company, at its principal office, addressed to the attention of the Corporate Secretary; and if to the Participant, at the address appearing in the
Company’s records. 
  
 13.18.
Captions. The use of captions in this Plan is for convenience. The captions are not intended to provide substantive rights. 
  
 14. Effective Date; Amendment and Termination. 
  
 14.1. Effective Date and Termination of the Plan. This Plan was adopted by the Board on December 15, 2005, and it will become
effective (the “Effective Date”) when it is approved by the Company’s stockholders. All Awards granted under this Plan are subject to, and may not be exercised before, the approval of this Plan by the stockholders prior to the first
anniversary date of the adoption date of the Plan, by the affirmative vote of the holders of a majority of the outstanding Shares of the Company present, or represented by proxy, and entitled to vote, at a meeting of the Company’s stockholders
in accordance with the laws of the State of Colorado; provided that if such approval by the stockholders of the Company is not forthcoming, all Awards previously granted under this Plan shall be void. The Plan shall remain available for the grant of
Awards until the tenth (10th) anniversary of the Effective Date. Notwithstanding the foregoing, the Plan may be terminated at such earlier time as the Board may determine. Termination of the Plan will not affect the rights and obligations of
the Participants and the Company arising under Awards theretofore granted and then in effect. 
  
 14.2. Amendment. The Board may amend, alter or discontinue this Plan, and the Committee may amend or alter any agreement or other document evidencing an Award made 

  

 17 

 
under this Plan but, except as provided pursuant to the provisions of Section 4.3, no such amendment shall, without the approval of the stockholders of
the Company: 
  
 (a) increase the maximum
number of Shares for which Awards may be granted under this Plan; 
  
 (b) reduce the price at which Stock Options or Stock Appreciation Rights may be granted below the price provided for in Sections 6.2 and 7.2; 
  
 (c) reduce the exercise price of outstanding Stock Options or Stock Appreciation Rights; 

 
 (d) extend the term of this Plan; 
  
 (e) otherwise amend the Plan in any manner requiring
stockholder approval by law or the listing requirements of the principal national securities exchange on which such Shares are listed or admitted to trading; or 
  
 (f) increase the individual maximum limits in Section 4.2. 
  
 No amendment or alteration to the Plan or an Award or Award Agreement shall be made which
would impair the rights of the holder of an Award, without such holder’s consent, provided that no such consent shall be required if (i) the Committee determines that such amendment or alteration either is required or advisable in order
for the Company, the Plan or the Award to satisfy any law or regulation or to meet the requirements of or avoid adverse financial accounting consequences under any accounting standard, or (ii) the Committee determines that such amendment or
alteration is not reasonably likely to significantly diminish the benefits provided under the Award, or that any such diminution has been adequately compensated. 
  

 18Amended and Restated Rights Agreement

 Exhibit 4.1 
  
 AMENDED AND RESTATED RIGHTS AGREEMENT 
  
 by and between 
  
 QUICKSILVER RESOURCES INC. 
  
 and 
  
 MELLON INVESTOR SERVICES LLC 
  
 as Rights Agent 
  
 Dated as of
December 20, 2005 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Section 1
	  	Certain Definitions	  	1
	 Section 2
	  	Appointment of Rights Agent	  	5
	 Section 3
	  	Issuance of Right Certificates	  	6
	 Section 4
	  	Form of Right Certificates	  	8
	 Section 5
	  	Countersignature and Registration	  	8
	 Section 6
	  	Transfer, Split-Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	  	9
	 Section 7
	  	Exercise of Rights; Purchase Price; Expiration Date of Rights	  	10
	 Section 8
	  	Cancellation and Destruction of Right Certificates	  	12
	 Section 9
	  	Reservation and Availability of Capital Stock	  	13
	 Section 10
	  	Preferred Shares Record Date	  	14
	 Section 11
	  	Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights	  	14
	 Section 12
	  	Certificate of Adjusted Purchase Price or Number of Shares	  	21
	 Section 13
	  	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	  	21
	 Section 14
	  	Fractional Rights and Fractional Shares	  	23
	 Section 15
	  	Rights of Action	  	25
	 Section 16
	  	Agreement of Right Holders	  	25
	 Section 17
	  	Right Certificate Holder Not Deemed a Stockholder	  	26
	 Section 18
	  	Concerning the Rights Agent	  	26
	 Section 19
	  	Merger or Consolidation or Change of Name of Rights Agent	  	27
	 Section 20
	  	Duties of Rights Agent	  	28
	 Section 21
	  	Change of Rights Agent	  	30
	 Section 22
	  	Issuance of New Right Certificates	  	31
	 Section 23
	  	Redemption and Termination	  	31
	 Section 24
	  	Exchange	  	32
	 Section 25
	  	Notice of Certain Events	  	33
	 Section 26
	  	Notices	  	34
	 Section 27
	  	Supplements and Amendments	  	35
	 Section 28
	  	Determination and Actions by the Board, etc.	  	36
	 Section 29
	  	Successors	  	36
	 Section 30
	  	Benefits of this Agreement	  	36
	 Section 31
	  	Severability	  	37
	 Section 32
	  	Governing Law	  	37
	 Section 33
	  	Counterparts	  	37
	 Section 34
	  	Descriptive Headings	  	37

  

 i 

 EXHIBITS 
  

			
	Exhibit A	  	Form of Amended and Restated Certificate of Designation of Preferred Stock
		
	Exhibit B	  	Form of Right Certificate
		
	Exhibit C	  	Summary of Rights to Purchase Preferred Shares

  

 ii 

 AMENDED AND RESTATED RIGHTS AGREEMENT 
  
 THIS AMENDED AND RESTATED RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
December 20, 2005, by and between Quicksilver Resources Inc., a Delaware corporation (the “Corporation”), and Mellon Investor Services LLC, a New Jersey limited liability company (the “Rights Agent”) and
constitutes an amendment and restatement of the Rights Agreement, dated March 11, 2003, between the Corporation and the Rights Agent. 
  
 The Board of Directors of the Corporation has authorized and declared a dividend of one preferred share purchase right (a “Right”) for
each Common Share (as hereinafter defined) of the Corporation outstanding at the Close of Business (as hereinafter defined) on March 26, 2003 (the “Record Date”), each Right representing the right to purchase one one-thousandth
of a Preferred Share (as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has further authorized and directed the issuance of one Right with respect to each Common Share that shall become outstanding between
the Record Date and the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are hereinafter defined); provided, however, that Rights may be issued with respect to Common Shares that shall become
outstanding after the Distribution Date and prior to the earlier of the Redemption Date and the Final Expiration Date in accordance with the provisions of this Agreement. 
  
 Accordingly, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as
follows: 
  
 Section 1. Certain Definitions. For purposes
of this Agreement, the following terms have the meanings indicated: 
  
 (a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of 15% or more of the then outstanding Common
Shares (other than as a result of a Permitted Offer) or was such a Beneficial Owner at any time after the date hereof, whether or not such Person continues to be the Beneficial Owner of 15% or more of the then outstanding Common Shares.
Notwithstanding the foregoing, (i) the term “Acquiring Person” shall not include (A) the Corporation, (B) any Subsidiary of the Corporation, (C) any employee benefit plan of the Corporation or of any Subsidiary of the
Corporation, (D) any Person or entity organized, appointed or established by the Corporation for or pursuant to the terms of any such plan, or (E) any Grandfathered Stockholder; and (ii) no Person shall be deemed to be an
“Acquiring Person” as a result of the acquisition of Common Shares by the Corporation which, by reducing the number of Common Shares outstanding, increases the proportional number of shares beneficially owned by such Person together with
all Affiliates and Associates of such Person (except that if (1) a Person would become an Acquiring Person (but for the operation of this clause (ii) as a result of the acquisition of Common Shares by the Corporation, and (2) after
such share acquisition by the Corporation, such Person, or an Affiliate or Associate of such Person, becomes the Beneficial Owner of any additional Common Shares (other than pursuant to a dividend or distribution paid or made by the Corporation on
the outstanding Common Shares or pursuant to a split or subdivision of the outstanding Common Shares), then such Person shall be deemed an Acquiring Person. Notwithstanding the foregoing, if the Board determines in good faith that a Person who would
otherwise be an “Acquiring Person” as defined pursuant to the foregoing provisions of 

 
this Section 1(a) has become such inadvertently, and such Person divests as promptly as practicable a sufficient number of Common Shares so that such
Person would no longer be an “Acquiring Person” as defined pursuant to the foregoing provisions of this Section 1 (a), then such Person shall not be deemed to be or to have been an “Acquiring Person” for any purposes of this
Agreement. 
  
 (b) “Act” shall
mean the Securities Act of 1933, as amended and as in effect on the date of this Agreement. 
  
 (c) “Adjusted Number of Shares” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (d) “Adjusted Purchase Price” shall have
the meaning set forth in Section 11(a)(iii) hereof. 
  
 (e) “Adjustment Shares” shall have the meaning set forth in Section 11(a)(ii) hereof. 
  
 (f) A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own,” any
securities: 
  
 (i) which such Person or any of
such Person’s Affiliates or Associates, directly or indirectly, beneficially owns (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act, as in effect on the date of this Agreement); 
  
 (ii) which such Person or any of such Person’s
Affiliates or Associates, directly or indirectly, has (A) the right to acquire (whether such right is exercisable immediately or only upon the occurrence of certain events or after the passage of time or both) pursuant to any agreement,
arrangement or understanding (whether or not in writing), or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for
purchase or exchange; or (B) the right to vote (whether such right is exercisable immediately or only upon the occurrence of certain events or after the passage of time or both) pursuant to any agreement, arrangement or understanding (whether
or not in writing) or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this clause B as a result of an agreement, arrangement or understanding to vote such security,
if such agreement, arrangement or understanding (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and
regulations promulgated under the Exchange Act, and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or 
  

 2 

 (iii) which are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding, whether or not in writing (other than customary agreements with and between underwriters
and selling group members with respect to a bona fide public offering of securities), relating to the acquisition, holding, voting (except to the extent contemplated by the proviso to Section 1(f)(ii)(B) hereof) or disposing of any securities
of the Corporation. 
  
 Notwithstanding anything in this definition of Beneficial
Ownership to the contrary, the phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Corporation, shall mean the number of such securities then issued and outstanding together with
the number of such securities not then actually issued and outstanding which such Person would be deemed to own beneficially hereunder. 
  
 (g) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2
of the General Rules and Regulations under the Exchange Act, as in effect on March 11, 2003. 
  
 (h) “Board” shall mean the Board of Directors of the Corporation. 
  
 (i) “Business Day” shall mean any day other
than a Saturday, Sunday, U.S. federal holiday, or a day on which the principal office of the Rights Agent is not open for business. 
  
 (j) “Capital Stock Equivalent” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (k) “Close of Business” on any given date
shall mean 5:00 P.M., Dallas, Texas time, on such date; provided, however, that if such date is not a Business Day “Close of Business” shall mean 5:00 P.M., Dallas, Texas time, on the next succeeding Business Day. 
  
 (l) “Common Shares” when used with respect
to the Corporation shall mean the shares of common stock, par value $0.01 per share, of the Corporation or, in the event of a subdivision, combination or consolidation with respect to such shares of common stock, the shares of common stock resulting
from such subdivision, combination or consolidation, except that, when used with reference to any Person other than the Corporation, “Common Shares” shall mean the capital stock (or equity interest) with the greatest voting power of such
other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person. 
  
 (m) “current per share market price” shall have the meaning set forth in Section 11(d) (i) hereof. 

 
 (n) “Distribution Date” shall have the
meaning set forth in Section 3(a) hereof. 
  

 3 

 (o) “equivalent preferred shares” shall have the meaning set forth in
Section 11(b) hereof. 
  
 (p)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended and as in effect on the date of this Agreement. 
  
 (q) “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof. 
  
 (r) “Final Expiration Date” shall have the
meaning set forth in Section 7(a) hereof. 
  
 (s) “Grandfathered Stockholder” shall mean at any time Mercury Exploration Company, Quicksilver Energy, L.P., The Discovery Fund, Pennsylvania Avenue Limited Partnership, Pennsylvania Management Company, the estate of Frank
Darden, Lucy Darden, Anne Darden Self, Glenn Darden or Thomas Darden, or their respective successors, assigns, designees, heirs, beneficiaries, trusts, estates or controlled affiliates. 
  
 (t) “Interested Stockholder” shall mean any Acquiring Person or any Affiliate or Associate
of an Acquiring Person or any other Person in which any such Acquiring Person, Affiliate or Associate has an interest which represents in excess of 5% of the total combined economic or voting power of such other Person, or any other Person acting
directly or indirectly on behalf of or in concert with any such Acquiring Person, Affiliate or Associate. 
  
 (u) “NASDAQ” shall mean The Nasdaq Stock Market. 
  
 (v) “Permitted Offer” shall mean a tender or exchange offer which is for all outstanding
Common Shares at a price and on terms determined, prior to the purchase of shares under such tender or exchange offer, by at least a majority of the members of the Board who are not Acquiring Persons or Affiliates, Associates, nominees or
representatives of an Acquiring Person, to be adequate (taking into account all factors that such directors deem relevant, including without limitation prices that could reasonably be achieved if the Corporation or its assets were sold on an orderly
basis designed to realize maximum value) and otherwise in the best interests of the Corporation and its stockholders (other than the Person by whom or on whose behalf the offer is being made or any Affiliate or Associate thereof) taking into account
all factors that such directors may deem relevant. 
  
 (w) “Person” shall mean any individual, firm, partnership, corporation, limited liability company, trust, association, joint venture or other entity, and shall include any successor (by merger or otherwise) of such entity.

  
 (x) “Preferred Shares” shall
mean shares of Series A Junior Participating Preferred Stock, with a par value of $0.01 per share, of the Corporation having the relative rights, preferences and limitations set forth in the Amended and Restated Certificate of Designation of such
Series A Junior Participating Preferred Stock (the form which is attached to this Agreement as Exhibit A). 
  

 4 

 (y) “Principal Party” shall have the meaning set forth in
Section 13(b) hereof. 
  
 (z)
“Proration Factor” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (aa) “Purchase Price” shall have the meaning set forth in Section 4(a) hereof. 
  
 (bb) “Redemption Price” shall have the
meaning set forth in Section 23(a)(i) hereof. 
  
 (cc) “Redemption Date” shall have the meaning set forth in Section 7(a) hereof. 
  
 (dd) “Reset Date” shall have the meaning set forth in Section 7 (b) hereof. 
  
 (ee) “Right Certificate” shall have
the meaning set forth in Section 3(a) hereof. 
  
 (ff) “Section 11(a)(ii) Event” shall mean any event described in Section 11(a)(ii) hereof. 
  
 (gg) “Section 13 Event” shall mean any event described in clause (x), (y) or (z) of Section 13(a)
hereof. 
  
 (hh)
“Security” shall have the meaning set forth in Section 11(d) hereof 
  
 (ii) “Shares Acquisition Date” shall mean the first date of public announcement (which, for purposes of this
definition, shall include, without limitation, a report filed pursuant to the Exchange Act) by the Corporation that an Acquiring Person has become such. 
  
 (jj) “Subsidiary” of any Person shall mean any corporation or other Person of which a majority of the voting power
of the voting equity securities or equity interest is owned, directly or indirectly, by such Person. 
  
 (kk) “Summary of Rights” shall have the meaning set forth in Section 3(b) hereof. 
  
 (ll) “Trading Day” shall have the
meaning set forth in Section 11(d)(i) hereof. 
  
 (mm) “Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event. 
  
 (nn) “Voting Securities” shall have the meaning set forth in Section 13(a) hereof. 
  
 Section 2. Appointment of Rights Agent. The Corporation hereby
appoints the Rights Agent to act as agent for the Corporation in accordance with the terms and conditions hereof. The Rights Agent hereby accepts such appointment. The Corporation may from time to time 

  

 5 

 
appoint such co-Rights Agents as it may deem necessary or desirable, in which case the respective duties of the Rights Agent and any co-Rights Agent shall be
as the Corporation shall determine; provided, however, no such appointment or allocation of duties shall change or increase the Rights Agent’s duties, liabilities or obligations. The Rights Agent shall have no duty to supervise, and in no event
shall be liable for, the acts or omissions of any such co-Rights Agent. 
  
 Section 3. Issuance of Right Certificates. 
  
 (a) Until the earlier of (i) the Close of Business on the Shares Acquisition Date or (ii) the Close of Business on the tenth day (or such later date as may be determined by action of the Board) after the
date of the commencement by any Person (other than the Corporation, any Subsidiary of the Corporation, any employee benefit plan of the Corporation or of any Subsidiary of the Corporation or any Person or entity organized, appointed or established
by the Corporation for or pursuant to the terms of any such plan) of, or of the first public announcement of the intention of any Person (other than the Corporation, any Subsidiary of the Corporation, any employee benefit plan of the Corporation or
of any Subsidiary of the Corporation or any Person or entity organized, appointed or established by the Corporation for or pursuant to the terms of any such plan) to commence (which intention to commence remains in effect for five Business Days
after such announcement), a tender or exchange offer the consummation of which would result in any Person becoming an Acquiring Person (including, in the case of both clause (i) and (ii), any such date which is after the date of this Agreement
and prior to the issuance of the Rights), the earlier of such dates being herein referred to as the “Distribution Date,” (1) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the
certificates for Common Shares registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates, and (2) the Rights will be transferable only in connection
with the transfer of the underlying Common Shares (including without limitation a transfer to the Corporation); provided, however, that, if a tender offer is terminated prior to the occurrence of a Distribution Date, then no Distribution Date shall
occur as a result of such tender offer. Upon the occurrence of a Distribution Date, the Corporation shall promptly notify the Rights Agent thereof in writing and request a stockholder list from the Corporation’s transfer agent. As soon as
practicable after the Rights Agent receives such notice and list, and all other relevant information which the Rights Agent may request, the Corporation will prepare and execute, the Rights Agent will countersign, and the Corporation will send or
cause to be sent by first-class mail, postage-prepaid, to each record holder of Common Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Corporation, a Right Certificate,
substantially in the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right for each Common Share so held. As of and after the Distribution Date, the Rights will be evidenced solely by such Right Certificates. Until
the Rights Agent receives written notice that the Distribution Date has occurred, the Rights Agent may presume conclusively for all purposes that the Distribution Date has not occurred. 
  
 (b) As promptly as practicable following the Record Date, the Corporation will send a copy of a Summary of
Rights to Purchase Preferred Shares, in substantially the form of Exhibit C hereto (the “Summary of Rights”), by first-class mail, postage-prepaid, to each record holder of Common Shares as of the Close of Business on the Record
Date, at the address 

  

 6 

 
of such holder shown on the records of the Corporation. With respect to certificates for Common Shares outstanding as of the Record Date, until the
Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof. Until the Distribution Date (or the earlier of the Redemption Date or the Final Expiration Date), the surrender for transfer of any
certificate for Common Shares outstanding on the Record Date, shall also constitute the transfer of the Rights associated with such Common Shares. 
  
 (c) Rights shall be issued in respect of all Common Shares outstanding as of the Record Date or issued (on original issuance or out of
treasury) after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date. In addition, in connection with the issuance or sale by the Corporation of Common Shares following the
Distribution Date and prior to the earlier of the Redemption Date and the Final Expiration Date, the Corporation (i) shall, with respect to Common Shares so issued or sold pursuant to the exercise of stock options or under any employee plan or
arrangement or upon the exercise, conversion or exchange of other securities issued by the Corporation prior to the Distribution Date, and (ii) may, in any other case, if deemed necessary or appropriate by the Board, issue the appropriate
number of Rights in connection with such issuance or sale; provided, however, that no such Right shall be issued if, and to the extent that (x) the Corporation shall be advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Corporation or the Person to whom such Right would be issued or (y) appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 
  
 (d) Certificates for Common Shares which become outstanding
(including without limitation reacquired Common Shares referred to in the last sentence of this paragraph (d)) after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date, shall be
deemed also to be certificates for Rights, and shall bear substantially the following legend: 
  
 This certificate also evidences and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Quicksilver
Resources Inc. and Mellon Investor Services LLC (or any successor thereto) as Rights Agent, dated as of March 11, 2003, as amended or supplemented from time to time (the “Rights Agreement”), the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal executive offices of Quicksilver Resources Inc. Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no
longer be evidenced by this certificate, may be redeemed or exchanged or may expire. Quicksilver Resources Inc. will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of a written request therefor. As
set forth in the Rights Agreement, Rights issued to, or held by, any Person who is, was or becomes an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement) and certain related Persons, whether
currently held by or on behalf of such Person or by any subsequent holder, may become null and void. 
  

 7 

 With respect to such certificates containing the foregoing legend, until the Distribution Date, the
Rights associated with the Common Shares represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated with the
Common Shares represented thereby. In the event that the Corporation purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed cancelled and
retired so that the Corporation shall not be entitled to exercise any Rights associated with such Common Shares which are no longer outstanding. Notwithstanding this Section 3(d), the omission of a legend shall not affect the enforceability of
any part of this Agreement or the rights of any holder of the Rights. 
  
 Section 4. Form of Right Certificates. 
  
 (a) The Right Certificates (and the forms of election to purchase and of assignment to be printed on the reverse thereof) shall be substantially in the form set forth in Exhibit B hereto and may have such marks of identification or
designation and such legends, summaries or endorsements printed thereon as the Corporation may deem appropriate (but which do not affect the rights, duties or responsibilities of the Rights Agent as set forth in this Agreement) and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Rights may from time
to time be listed, or to conform to usage. Subject to the provisions of Sections 11 and 22 hereof, the Right Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of a Preferred Share as shall be set forth
therein at the price per one one-thousandth of a Preferred Share set forth therein, as specified in Section 7(b) hereof (the “Purchase Price”), but the amount and type of securities purchasable upon the exercise of each Right
and the Purchase Price thereof shall be subject to adjustment as provided herein. 
  
 (b) Any Right Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents Rights which are null and void
pursuant to Section 7(e) of this Agreement and any Right Certificate issued pursuant to Section 6 or 11 hereof upon transfer, exchange, replacement or adjustment of any other Right Certificate referred to in this sentence, shall contain
(to the extent the Rights Agent has written notice thereof and to the extent feasible) the following legend: 
  
 The Rights represented by this Right Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate or
Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Right Certificate and the Rights represented hereby are null and void. 
  
 (c) Provisions of Section 7(e) of this Agreement shall be operative whether or not the foregoing legend
is contained on any such Right Certificate. 
  
 Section 5.
Countersignature and Registration. 
  
 (a)
The Right Certificates shall be executed on behalf of the Corporation by its Chairman of the Board, its Chief Executive Officer, its President, any of its Vice Presidents, 

  

 8 

 
or its Treasurer, either manually or by facsimile signature, shall have affixed thereto the Corporation’s seal or a facsimile thereof, and shall be
attested by the Secretary or an Assistant Secretary of the Corporation, either manually or by facsimile signature. The Right Certificates shall be countersigned by the Rights Agent and shall not be valid for any purpose unless so countersigned. In
case any officer of the Corporation who shall have signed any of the Right Certificates shall cease to be such officer of the Corporation before countersignature by the Rights Agent and issuance and delivery by the Corporation, such Right
Certificates may nevertheless be countersigned by the Rights Agent and issued and delivered by the Corporation with the same force and effect as though the Person who signed such Right Certificates had not ceased to be such officer of the
Corporation; and any Right Certificate may be signed on behalf of the Corporation by any Person who, at the actual date of the execution of such Right Certificate, shall be a proper officer of the Corporation to sign such Right Certificate, although
at the date of the execution of this Rights Agreement any such Person was not such an officer. 
  
 (b) Following the Distribution Date and receipt by the Rights Agent of the written notice, shareholder list and additional relevant
information referred to in Section 3(a) hereof, the Rights Agent will keep or cause to be kept, at its office designated pursuant to Section 26 hereof as the appropriate place for surrender of Right Certificates upon exercise, transfer or
exchange, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the
Right Certificates and the certificate number and the date of each of the Right Certificates. 
  
 Section 6. Transfer, Split-Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. 
  
 (a) Subject to the provisions of Sections 4(b), 7(e) and 14 hereof, at any time after the Close of Business
on the Distribution Date, and at or prior to the Close of Business on the earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates representing exercisable Rights may be transferred, split up, combined
or exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number of one one-thousandth of a Preferred Share (or, following a Triggering Event, other securities, as the case may be) as the
Right Certificate or Right Certificates surrendered then entitled such holder (or former holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right
Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the office of the Rights Agent designated for such
purpose. Neither the Rights Agent nor the Corporation shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Right Certificate until the registered holder shall have duly and properly completed and
signed the certificate contained in the form of assignment on the reverse side of such Right Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Corporation or the Rights Agent shall reasonably request. Thereupon the Rights Agent shall, subject to Sections 4(b), 7(e) and 14 hereof, countersign and deliver to the Person entitled thereto a Right Certificate or Right
Certificates, as the case may be, as so requested. The Corporation may require payment of a sum sufficient to cover any tax or governmental charge that may be 

  

 9 

 
imposed in connection with any transfer, split up, combination or exchange of Right Certificates. The Rights Agent shall have no obligation to take any
action under any Section of this Agreement that requires the payment by a Rights holder of applicable taxes and/or governmental charges until it is satisfied that all applicable taxes and governmental charges have been paid. 
  
 (b) Upon receipt by the Corporation and the Rights Agent of
evidence satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security satisfactory to them, and, at the Corporation’s or the Rights Agent’s
request, reimbursement to the Corporation and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Corporation will make and deliver a new
Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 
  
 Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 
  
 (a) Subject to Section 7(e) hereof, the registered
holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to
purchase and the certificate on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment (in lawful money of the United States of America by certified check or
bank draft payable to the order of the Corporation) of the aggregate Purchase Price for the total number of one one-thousandths of a Preferred Share (or other securities, as the case may be) as to which such surrendered Rights are exercised, and an
amount equal to any applicable transfer tax, at or prior to the earliest of (i) the Close of Business on March 11, 2013 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in
Section 23 hereof (the “Redemption Date”), or (iii) the time at which the Rights are exchanged as provided in Section 24 hereof. 
  
 (b) The Purchase Price for each one one-thousandth of a Preferred Share pursuant to the exercise of a Right
shall initially be $180.00 as of December 20, 2005 (the “Reset Date”) and thereafter, shall be subject to adjustment from time to time as provided in the next sentence and in Sections 11 and 13(a) hereof and shall be payable in
accordance with paragraph (c) of this Section 7. Anything in this Agreement to the contrary notwithstanding, in the event that, at any time after the Reset Date and prior to the Distribution Date, the Corporation shall (i) declare or
pay any dividend on the Common Shares payable in Common Shares or (ii) effect a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares) into a greater or
lesser number of Common Shares, then, in any such case, each Common Share outstanding following such subdivision, combination or consolidation shall continue to have a Right associated therewith and the Purchase Price following any such event shall
be proportionately adjusted to equal the result obtained by multiplying the Purchase Price immediately prior to such event by a fraction the numerator of which shall be the total number of Common Shares outstanding immediately prior to the
occurrence of the event and the denominator of which shall be the total number of 

  

 10 

 
Common Shares outstanding immediately following the occurrence of such event. The adjustment provided for in the preceding sentence shall be made
successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is effected. 
  
 (c) Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase and the certificate duly
executed, accompanied by payment of the Purchase Price for the Preferred Shares (or other securities, as the case may be) to be purchased and an amount equal to any applicable tax or governmental charge required to be paid by the holder of such
Right Certificate in accordance with Section 6 hereof by certified check, cashier’s check or money order payable to the order of the Corporation, the Rights Agent shall thereupon promptly (i) (A) requisition from any transfer
agent of the Preferred Shares certificates for the number of Preferred Shares to be purchased (and the Corporation hereby irrevocably authorizes its transfer agent to comply with all such requests), or (B) if the Corporation, in its sole
discretion, shall have elected to deposit the Preferred Shares issuable upon exercise of the Rights hereunder into a depositary, requisition from the depositary agent of depositary receipts representing such number of one one-thousandths of a
Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Corporation will direct the depositary agent to
comply with such requests; (ii) when appropriate, requisition from the Corporation the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof; (iii) after receipt of such certificates
or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder; and (iv) when appropriate, after receipt
thereof, deliver such cash to or upon the order of the registered holder of such Right Certificate. In the event that the Corporation is obligated to issue other securities (including Common Shares) of the Corporation pursuant to Section 11(a)
hereof, the Corporation will make all arrangements necessary so that such other securities are available for distribution by the Rights Agent, if and when necessary to comply with this Agreement. 
  
 In addition, in the case of an exercise of the Rights by a holder pursuant to
Section 11(a)(ii) hereof, the Rights Agent shall return such Right Certificate to the registered holder thereof after imprinting, stamping or otherwise indicating thereon that the rights represented by such Right Certificate no longer include
the rights provided by Section 11(a)(ii) hereof and, if less than all the Rights represented by such Right Certificate were so exercised, the Rights Agent shall indicate on the Right Certificate the number of Rights represented thereby which
continue to include the rights provided by Section 11(a)(ii) hereof. 
  
 (d) In case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be
issued by the Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns, subject to the provisions of Sections 6 and 14 hereof, or the Rights Agent shall place an appropriate notation on the Right Certificate
with respect to those Rights exercised. 
  
 (e)
Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an 

  

 11 

 
Acquiring Person or an Affiliate or Associate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any Affiliate or Associate
thereof) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any Affiliate or Associate thereof) who becomes a transferee prior to or concurrently with the Acquiring Person
becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has a
continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board has determined is part of an agreement, arrangement or understanding which has as a primary purpose or effect the avoidance of
this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Corporation
shall promptly notify the Rights Agent in writing when this Section 7(e) applies and shall use all reasonable efforts to ensure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but neither the
Corporation nor the Rights Agent shall have any liability to any holder of Right Certificates or other Person as a result of the Corporation’s failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates
or any transferee of any of them hereunder. 
  
 (f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Corporation shall be obligated to undertake any action with respect to a registered holder of Rights upon the occurrence of any purported
transfer pursuant to Section 6 hereof or exercise as set forth in this Section 7, unless such registered holder (i) shall have duly and properly completed and signed the certificate contained in the form of assignment or election to
purchase, as the case may be, set forth on the reverse side of the Right Certificate surrendered for such transfer or exercise, as the case may be, (ii) shall not have indicated an affirmative response to clause 1 or 2 thereof, (iii) shall
have tendered the Purchase Price (and an amount equal to any applicable tax or charge required to be paid by the holder of such Rights Certificate hereunder), and (iv) shall have provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Corporation or the Rights Agent shall reasonably request. 
  
 Section 8. Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split
up, combination or exchange shall, if surrendered to the Corporation or to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, be cancelled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Corporation shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any other Right Certificate purchased or acquired by the Corporation otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates to the Corporation, or shall, at the written request of the
Corporation, destroy such cancelled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the Corporation. 
  

 12 

 Section 9. Reservation and Availability of Capital Stock. 
  
 (a) The Corporation covenants and agrees that (i) at
all times prior to the occurrence of a Section 11(a)(ii) Event, it will cause to be reserved and kept available out of its authorized and unissued Preferred Shares, or any authorized and issued Preferred Shares held in its treasury, the number
of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights, and (ii) after the occurrence of a Section 11(a)(ii) Event, it will, to the extent reasonably practicable, so reserve and keep available
a sufficient number of Common Shares (and/or other securities) which may be required to permit the exercise in full of the Rights pursuant to this Agreement. 
  

(b) So long as the Preferred Shares (and, after the occurrence of a Section 11(a)(ii) Event, Common Shares or any other
securities) issuable upon the exercise of the Rights may be listed on any stock exchange, the Corporation shall use its best efforts to cause, from and after such time as the Rights become exercisable, all securities reserved for such issuance to be
listed on such exchange upon official notice of issuance upon such exercise. 
  
 (c) The Corporation covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares (or Common Shares and/or other securities, as the case may be) delivered upon exercise
of Rights shall, at the time of delivery of the certificates for such shares or other securities (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and non-assessable shares or securities.

  
 (d) The Corporation further covenants and
agrees that it will pay when due and payable any and all federal and state taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares (or Common Shares and/or other securities,
as the case may be) upon the exercise of Rights. The Corporation shall not, however, be required to pay any tax or charge which may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or
delivery of certificates or depositary receipts for the Preferred Shares (or Common Shares and/or other securities, as the case may be) in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for
exercise, or to issue or to deliver any certificates or depositary receipts for Preferred Shares (or Common Shares and/or other securities, as the case may be) upon the exercise of any Rights, until any such tax or charge shall have been paid (any
such tax or charge being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Corporation’s satisfaction that no such tax or charge is due. 
  
 (e) The Corporation shall use its best efforts to
(i) file, as soon as practicable following the Shares Acquisition Date (or, if required by law, at such earlier time following the Distribution Date as so required), a registration statement under the Act, with respect to the securities
purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a
prospectus at all times meeting the requirements of the Act and the rules and regulations thereunder) until the date of the expiration of the rights provided by Section 11(a)(ii) hereof. The Corporation will also take such action as may be
appropriate under the blue sky laws of the various states. The Corporation may 

  

 13 

 
temporarily suspend, for a period of time not to exceed 90 days after the date set forth in clause (i) of this Section 9(e), the exercisability of
the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Corporation shall issue a public announcement (with prompt written notice thereof to the Rights Agent) stating that
the exercisability of the Rights has been temporarily suspended, as well as a public announcement (with prompt written notice thereof to the Rights Agent) at such time as the suspension is no longer in effect. Notwithstanding any such provision of
this Agreement to the contrary, the Rights shall not be exercisable for securities in any jurisdiction if the requisite qualification in such jurisdiction shall not have been obtained, such exercise therefor shall not be permitted under applicable
law, or a registration statement in respect of such securities shall not have been declared effective. 
  
 Section 10. Preferred Shares Record Date. Each Person in whose name any certificate for Preferred Shares (or Common Shares and/or other
securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares (or Common Shares and/or other securities, as the case may be) represented thereby on,
and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable taxes and other governmental charges) was made; provided, however, that,
if the date of such surrender and payment is a date upon which the transfer books of the Corporation relating to the Preferred Shares (or Common Shares and/or other securities, as the case may be) are closed, such Person shall be deemed to have
become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the applicable transfer books are open. 
  
 Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights. The Purchase Price, the
number and kind of shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 
  
 (a) (i) In the event the Corporation shall at any time after the Reset Date (A) declare a dividend
on the Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares into a greater number of Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares, or
(D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including without limitation any such reclassification in connection with a consolidation or merger in which the Corporation is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect immediately prior to the record date for such dividend or of the effective date of such subdivision, combination or
reclassification, and the number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall (except as otherwise provided herein, including without
limitation Section 7(e) hereof) thereafter be entitled to receive, upon exercise thereof at the aggregate Purchase Price that would have been payable upon the exercise thereof in full immediately prior to such date, the aggregate number and
kind of shares of capital stock which, if such Right had been exercised immediately prior to such date and at a time when the applicable transfer books of the Corporation were open, such holder 

  

 14 

 
would have been entitled to receive upon such exercise by virtue of such dividend, subdivision, combination or reclassification; provided, however, that in
no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Corporation issuable upon exercise of one Right. If an event occurs which would require an
adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to
Section 11(a)(ii) hereof. 
  
 (ii) In the
event any Person, alone or together with its Affiliates and Associates, shall, at any time after the date of this Agreement, become an Acquiring Person, then proper provision shall be made so that each holder of a Right shall (except as provided
below and in Section 7(e) hereof), for a period of 60 days after the later of the occurrence of any such event or the effective date of an appropriate registration statement under the Act pursuant to Section 9 hereof, have a right to
receive, upon exercise thereof at a price equal to the then current Purchase Price, in accordance with the terms of this Agreement, in lieu of Preferred Shares, such number of duly authorized, validly issued, fully paid and non-assessable Common
Shares (or, in the discretion of the Board, one one-thousandths of a Preferred Share) as shall equal the result obtained by (A) multiplying the then current Purchase Price by the then number of one one-thousandths of a Preferred Share for which
a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event, and dividing that product by (B) 50% of the then current per share market price of the Common Shares (determined pursuant to Section 11(d)
hereof) on the date of such first occurrence (such number of shares being referred to as the “Adjustment Shares”); provided, however, that, if the transaction that would otherwise give rise to the foregoing adjustment is also
subject to the provisions of Section 13 hereof, then only the provisions of Section 13 hereof shall apply and no adjustment shall be made pursuant to this Section 11(a)(ii). 
  
 (iii) If there shall not be sufficient treasury shares or
authorized but unissued (and unreserved) Common Shares to permit the exercise in full of the Rights in accordance with Section 11(a)(ii) hereof and the Rights become so exercisable, then, notwithstanding any other provision of this Agreement,
to the extent necessary and permitted by applicable law, each Right shall thereafter represent the right to receive, upon exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, Common Shares, Preferred
Shares, other equity securities of the Corporation, and/or, in the discretion of the Board, debt securities of the Corporation (collectively, “capital stock equivalents”) as selected by the Board and which the Board determines to have an
aggregate current market value equal to the aggregate current market value of the Adjustment Shares; provided, however, if sufficient Common Shares and/or other capital stock equivalents are unavailable, then the Corporation shall, to the extent
permitted by applicable law, take all such action as may be necessary to authorize additional Common Shares or capital stock equivalents for issuance upon exercise of the Rights, including the calling of a meeting of stockholders; and provided,
further, that, if the Corporation is unable to cause, within 90 calendar days after the Shares Acquisition Date, sufficient Common Shares and/or other capital stock equivalents to be available for issuance upon exercise in full of the Rights, then
each Right shall thereafter represent the right to receive the Adjusted Number of Shares upon exercise at the Adjusted Purchase Price (as such terms are hereinafter defined). As used herein, the term “Adjusted Number of Shares”
shall mean 

  

 15 

 
Common Shares and/or other capital stock equivalents selected by the Board and which the Board shall have determined to have an aggregate current market
value equal to the product of (X) the aggregate current market value of the Adjustment Shares and (Y) a fraction, the numerator of which is the aggregate current market value of the Common Shares and/or other capital stock equivalents
available for issuance upon exercise of the Rights and the denominator of which is the aggregate current market value of Common Shares that would be issuable upon exercise in full of all Rights assuming there were a sufficient number of Common
Shares available for such issuance (such fraction being referred to as the “Proration Factor”). The “Adjusted Purchase Price” shall mean the product of the Purchase Price and the Proration Factor. The Board may, but
shall not be required to, establish procedures to allocate the right to receive Common Shares and capital stock equivalents upon exercise of the Rights among holders of Rights. 
  
 (b) In case the Corporation shall fix a record date for the issuance of rights (other than the Rights),
options or warrants to all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences
as the Preferred Shares (“equivalent preferred shares”)) or securities convertible into or exercisable for Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a
conversion price per share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the then current per share market price of the Preferred Shares (as determined pursuant to Section 11(d) hereof) on such
record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Preferred
Shares outstanding on such record date plus the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price
of the convertible securities so to be offered) would purchase at such current per share market price, and the denominator of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional Preferred
Shares and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon
the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Corporation issuable upon exercise of one Right. In case such subscription price may be paid by delivery of consideration part or all of which shall
be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board, whose determination shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes.
Preferred Shares owned by or held for the account of the Corporation shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such
rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
  
 (c) In case the Corporation shall fix a record date for the making of a distribution to all holders of the
Preferred Shares (including any such distribution made in connection with a consolidation or merger in which the Corporation is the continuing or 

  

 16 

 
surviving corporation) of evidences of indebtedness, equity securities other than Preferred Shares or assets (other than a regular periodic cash dividend or
a dividend payable in Preferred Shares) or subscription rights, options or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the then current per share market price (as determined pursuant to Section 11(d) hereof) of the Preferred Shares on such record date, less the
fair market value (as determined in good faith by the Board, whose determination shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes) of the portion of the assets, equity securities or
evidences of indebtedness so to be distributed or of such subscription rights, options or warrants applicable to one Preferred Share, and the denominator of which shall be such current per share market price of the Preferred Shares; provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Corporation to be issued upon exercise of one Right. Such adjustments shall be
made successively whenever such a record date is fixed; and, in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if such record date had not been
fixed. 
  
 (d) (i) For the purpose of any
computation hereunder, the “current per share market price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per
share of such Security for the 30 consecutive Trading Days immediately prior to but not including such date; provided, however, that, in the event the current per share market price of the Security is determined during a period following the
announcement by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such shares or (B) any subdivision, combination or reclassification of such
Security and prior to the expiration of 30 Trading Days after but not including the ex-dividend date for such dividend or distribution or the record date for such subdivision, combination or reclassification, then, and in each such case, the current
per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such
day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if
the Security is not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the
Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by NASDAQ or such other system then in use, or, if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker
making a market in the Security selected by the Board. If on any such date no such market maker is making a market in the Security, the fair value of the Security on such date as determined in good faith by the Board shall be used. The term
“Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or 

  

 17 

 
admitted to trading is open for the transaction of business or, if the Security is not listed or admitted to trading on any national securities exchange, a
Business Day. 
  
 (ii) For the purpose of any
computation hereunder, the “current per share market price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i) hereof. If the Preferred Shares are not publicly traded, the
“current per share market price” of the Preferred Shares shall be conclusively deemed to be the current per share market price of the Common Shares as determined pursuant to Section 11(d)(i) hereof, (appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after March 11, 2003), multiplied by 1,000. If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “current per share market
price” of the Preferred Shares shall mean the fair value per share as determined in good faith by the Board, whose determination shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes.

  
 (e) Anything herein to the contrary
notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments which by reason of this
Section 11(e), are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one one-millionth of a
Preferred Share or one ten-thousandth of any other share or security as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of
(i) three years from the date of the transaction which mandates such adjustment or (ii) the Final Expiration Date. 
  
 (f) If, as a result of an adjustment made pursuant to Section 11(a)(ii) or 13(a) hereof, the holder of any Right thereafter exercised
shall become entitled to receive, upon exercise of such Right, any shares of capital stock of the Corporation other than Preferred Shares, thereafter the number of other shares so receivable upon exercise of any Right shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a) through (c) hereof, inclusive, and the provisions of Sections 7, 9, 10, 13 and 14
hereof with respect to the Preferred Shares shall apply on like terms to any such other shares. 
  
 (g) All Rights originally issued by the Corporation subsequent to any adjustment made hereunder shall evidence the right to purchase, at
the adjusted Purchase Price, the number of one one-thousandths of a Preferred Share and other capital stock of the Corporation purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.

  
 (h) The Corporation may elect, on or after
the date of any adjustment of the Purchase Price, to adjust the number of Rights, in lieu of any adjustment in the number of one one-thousandths of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such
adjustment of the number of Rights shall be exercisable for the number of one one-thousandths of a Preferred Share for which a Right was exercisable 

  

 18 

 
immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The
Corporation shall make a public announcement (and shall promptly deliver a copy of such announcement to the Rights Agent) of its election to adjust the number of Rights, indicating the record date for the adjustment and, if known at the time, the
amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(h), the Corporation shall, as promptly as practicable, cause to be distributed to holders of record of Right
Certificates on such record date Right Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment or, at the option of the Corporation, shall cause to be
distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Corporation, new Right Certificates evidencing all
the Rights to which such holders shall be entitled after such adjustment. Right Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein (and may, at the option of the Corporation, reflect the
adjusted Purchase Price) and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public announcement. 
  
 (i) Irrespective of any adjustment or change in the Purchase Price or the number of one one-thousandths of a
Preferred Share issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one one-thousandths of a Preferred Share which were expressed in the
initial Right Certificates issued hereunder. 
  
 (j) Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, of the number of one one-thousandths of a Preferred Share, Common Shares or other securities issuable upon exercise of
the Rights, the Corporation shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Corporation may validly and legally issue such number of fully paid and non-assessable one one-thousandths of a
Preferred Share, Common Shares or other securities at such adjusted Purchase Price. 
  
 (k) In any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date
for a specified event, the Corporation may elect (and shall provide the Rights Agent with prompt written notice of such election) to defer, until the occurrence of such event, the issuance to the holder of any Right exercised after such record date
of the Preferred Shares, Common Shares or other securities of the Corporation, if any, issuable upon such exercise over and above the Preferred Shares, Common Shares or other securities of the Corporation, if any, issuable upon exercise on the basis
of the Purchase Price in effect prior to such adjustment; provided, however, that the Corporation shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the
occurrence of the event requiring such adjustment. 
  

 19 

 (l) Anything in this Section 11 to the contrary notwithstanding, the Corporation
shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it, in its sole discretion, shall determine to be advisable in order that any
(i) consolidation or subdivision of the Preferred Shares, (ii) issuance wholly for cash of Preferred Shares at less than the current market price, (iii) issuance wholly for cash of Preferred Shares or securities which by their terms
are convertible into or exchangeable for Preferred Shares, (iv) stock dividends, or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Corporation to holders of its Preferred Shares shall
not be taxable to such stockholders. 
  
 (m) The
Corporation covenants and agrees that it will not, at any time after the Distribution Date, (i) consolidate with any other Person (other than a Subsidiary of the Corporation in a transaction which does not violate Section 11(n) hereof),
(ii) merge with or into any other Person (other than a Subsidiary of the Corporation in a transaction which does not violate Section 11(n) hereof), or (iii) sell or otherwise transfer (or permit any Subsidiary of the Corporation to
sell or otherwise transfer), in one transaction or a series of related transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Corporation and its Subsidiaries (taken as a whole) to any other Person or
Persons (other than the Corporation and/or any of its Subsidiaries in one or more transactions each of which does not violate Section 11(n) hereof), if (x) at the time of or immediately after such consolidation, merger, sale or transfer
there are any charter or by-law provisions or any rights, warrants or other instruments or securities outstanding or agreements in effect or other actions taken, which would materially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights, or (y) prior to, simultaneously with or immediately after such consolidation, merger, sale or transfer, the stockholders of the Person who constitutes, or would constitute, the Principal Party (for purposes of
Section 13(a) hereof) shall have received a distribution of Rights previously owned by such Person or any of its Affiliates and Associates. The Corporation shall not consummate any such consolidation, merger, sale or transfer unless prior
thereto the Corporation and such other Person shall have executed and delivered to the Rights Agent a supplemental agreement evidencing compliance with this Section 11(m). 
  
 (n) The Corporation covenants and agrees that, after the Distribution Date, it will not, except as permitted
by Section 23, 24 or 27 hereof, take (or permit any of its Subsidiaries to take) any action the purpose of which is to, or if at the time such action is taken it is reasonably foreseeable that the effect of such action would be to, materially
diminish or otherwise eliminate the benefits intended to be afforded by the Rights. 
  
 (o) The exercise of Rights under Section 11(a)(ii) hereof shall only result in the loss of rights under said Section 11(a)(ii)
to the extent so exercised and shall not otherwise affect the rights represented by the Rights under this Agreement, including the rights under Section 13 hereof. 
  
 (p) Unless the Corporation shall have exercised its election as provided in Section 11(h) hereof, upon
each adjustment of the Purchase Price as a result of the calculations made in Section 11(b) or (c) hereof, each Right outstanding immediately prior to the making of 

  

 20 

 
such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a Preferred Share
(calculated to the nearest one-millionth) obtained by (i) multiplying (A) the number of one one-thousandths of a share for which a Right was exercisable immediately prior to this adjustment by (B) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price, and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 
  
 Section 12. Certificate of Adjusted Purchase Price or Number of
Shares. Whenever an adjustment is made or any event affecting the Rights or their exercisability (including, without limitation, an event which causes Rights to become null and void) occurs as provided in Section 11 or 13 hereof, the
Corporation shall promptly (a) prepare a certificate setting forth such adjustment, and a brief, reasonably detailed statement of the facts, computations and methodology giving rise to such adjustment or describing such an event, (b) file
with the Rights Agent and with each transfer agent for the Common Shares and the Preferred Shares a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate (or, if prior to the Distribution Date, to
each holder of a certificate representing Common Shares) in accordance with Section 26 hereof. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall have no
duty with respect to and shall not be deemed to have knowledge of such adjustment or event unless and until it shall have received such certificate. 
  
 Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. 
  
 (a) In the event that, on or following the Shares
Acquisition Date, directly or indirectly, (x) the Corporation shall consolidate with, or merge with and into, any Person (and the Corporation shall not be the continuing or surviving corporation of such consolidation or merger), (y) the
Corporation shall consolidate with, or merge with, any Person, and the Corporation shall be the continuing or surviving corporation of such consolidation or merger (other than, in a case of any transaction described in clause (x) or
(y) above, a merger or consolidation which would result in all of the securities generally entitled to vote in the election of directors (“voting securities”) of the Corporation outstanding immediately prior thereto continuing
to represent (either by remaining outstanding or by being converted into securities of the surviving entity) all of the voting securities of the Corporation or such surviving entity outstanding immediately after such merger or consolidation and the
holders of such securities not having changed as a result of such merger or consolidation), or (z) the Corporation shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one transaction or a
series of related transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Corporation and its Subsidiaries (taken as a whole) to any Person (other than the Corporation or any Subsidiary of the
Corporation in one or more transactions each of which does not violate Section 11(n) hereof), then, and in each such case (except as provided in Section 13(d) hereof), proper provision shall be made so that (i) each holder of a Right,
except as provided in Section 7(e) hereof, shall thereafter have the right to receive, upon the exercise thereof at a price equal to the then current Purchase Price, in accordance with the terms of this Agreement and in lieu of Preferred
Shares, such number of duly authorized, validly issued, fully paid, non-assessable and freely tradeable Common Shares of the Principal Party (as hereinafter defined), not subject to any liens, encumbrances, rights of 

  

 21 

 
call or first refusal or other adverse claims, as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of
one one-thousandths of a Preferred Share for which a Right is then exercisable (without taking into account any adjustment previously made pursuant to Section 11(a)(ii) hereof) and dividing that product by (B) 50% of the then current per
share market price of the Common Shares of such Principal Party (determined pursuant to Section 11(d)(i) hereof) on the date of consummation of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall
assume, by virtue of such Section 13 Event, all the obligations and duties of the Corporation pursuant to this Agreement; (iii) the term “Corporation” shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section 13 Event; and (iv) such Principal Party shall take such steps (including without
limitation the authorization and reservation of a sufficient number of its Common Shares to permit exercise of all outstanding Rights in accordance with this Section 13(a)) in connection with the consummation of any such transaction as may be
necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to the Common Shares of such Principal Party thereafter deliverable upon the exercise of the Rights. 
  
 (b) “Principal Party” shall mean

  
 (i) in the case of any transaction described
in clause (x) or (y) of the first sentence of Section 13(a) hereof, the Person that is the issuer of any securities into which Common Shares of the Corporation are converted in such merger or consolidation, and if no securities are so
issued, the Person that survives or results from such merger or consolidation; and 
  
 (ii) in the case of any transaction described in clause (z) of the first sentence of Section 13(a) hereof, the Person that is
the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions; provided, however, that, in any of the foregoing cases, (A) if the Common Shares of such Person are not at such
time and have not been continuously over the preceding 12 month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person the Common Shares of which are and have been so
registered, “Principal Party” shall refer to such other Person; (B) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Shares of two or more of which are and have been so registered,
“Principal Party” shall refer to whichever of such Persons is the issuer of the Common Shares having the greatest aggregate market value; and (C) in case such Person is owned, directly or indirectly, by a joint venture formed by two
or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in clauses (A) and (B) above shall apply to each of the chains of ownership having an interest in such joint venture as if such party were
a “Subsidiary” of both or all of such joint venturers and the Principal Parties in each such chain shall bear the obligations set forth in this Section 13 in the same ratio as their direct or indirect interests in such Person bear to
the total of such interests. 
  
 (c) The
Corporation shall not consummate any such consolidation, merger, sale or transfer unless the Principal Party shall have a sufficient number of its authorized 

  

 22 

 
Common Shares which have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and
unless prior thereto the Corporation and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in Sections 13(a) and (b) hereof and further providing that, as soon
as practicable after the date of any consolidation, merger, sale or transfer mentioned in Section 13(a) hereof, the Principal Party, at its own expense, shall: 
  
 (i) prepare and file a registration statement under the Act with respect to the Rights and the securities
purchasable upon exercise of the Rights on an appropriate form, and will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing and (B) remain effective (with a prospectus
at all times meeting the requirements of the Act) until the Final Expiration Date; 
  
 (ii) use its best efforts to qualify or register the Rights and the securities purchasable upon exercise of the Rights under the blue sky
or securities laws of such jurisdictions as may be necessary or appropriate; and 
  
 (iii) deliver to holders of the Rights historical financial statements for the Principal Party which comply in all respects with the
requirements for registration on Form 10 under the Exchange Act. 
  
 The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. The rights under this Section 13 shall be in addition to the rights to exercise Rights and adjustments
under Section 11(a)(ii) and shall survive any exercise thereof. 
  
 (d) Notwithstanding anything in this Agreement to the contrary, this Section 13 shall not be applicable to a transaction described in clauses (x) and (y) of Section 13(a) hereof if: (i) such
transaction is consummated with a Person or Persons who acquired Common Shares pursuant to a Permitted Offer (or a wholly owned Subsidiary of any such Person or Persons); (ii) the price per Common Share offered in such transaction is not less
than the price per Common Share paid to all holders of Common Shares whose shares were purchased pursuant to such Permitted Offer; and (iii) the form of consideration offered in such transaction is the same as the form of consideration paid
pursuant to such Permitted Offer. Upon consummation of any such transaction contemplated by this Section 13(d), all Rights hereunder shall expire. 
  
 Section 14. Fractional Rights and Fractional Shares. 
  

(a) The Corporation shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional
Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates, with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current
market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would
have been otherwise issuable. The closing price for any day shall be the last sale price, regular way, or, in case no 

  

 23 

 
such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities exchange on which the Rights are listed or admitted to trading or, if the Rights are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in use or, if on any such date the Rights are not quoted by any
such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board. If on any such date no such market maker is making a market in the Rights, the fair
value of the Rights on such date as determined in good faith by the Board shall be used. 
  
 (b) The Corporation shall not be required to issue fractions of Preferred Shares (other than fractions which are one one-thousandth or
integral multiples of one one-thousandth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions which are one one-thousandth or integral multiples of one
one-thousandth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-thousandth of a Preferred Share may, at the election of the Corporation, be evidenced by depositary receipts, pursuant to an appropriate agreement
between the Corporation and a depositary selected by it; provided, that such agreement shall provide that the holders of such depositary receipts shall have the rights, privileges and preferences to which they are entitled as beneficial owners of
the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not one one-thousandth or integral multiples of one one-thousandth of a Preferred Share, the Corporation shall pay to the registered
holders of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one one-thousandth of a Preferred Share. For the purposes of this Section 14(b),
the current market value of one one-thousandth of a Preferred Share shall be one one-thousandth of the closing price of a Preferred Share (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of
such exercise. 
  
 (c) Following the occurrence
of one of the transactions or events specified in Section 11 hereof giving rise to the right to receive Common Shares, capital stock equivalents (other than Preferred Shares) or other securities upon the exercise of a Right, the Corporation
shall not be required to issue fractions of shares or units of such Common Shares, capital stock equivalents or other securities upon exercise of the Rights or to distribute certificates which evidence fractions of such Common Shares, capital stock
equivalents or other securities. In lieu of fractional shares or units of such Common Shares, capital stock equivalents or other securities, the Corporation may pay to the registered holders of Right Certificates at the time such Rights are
exercised as herein provided an amount in cash equal to the same fraction of the current market value of a share or unit of such Common Shares, capital stock equivalents or other securities. For purposes of this Section 14(c), the current
market value shall be determined in the manner set forth in Section 11(d) hereof for the Trading Day immediately prior to the date of 

  

 24 

 
such exercise and, if such capital stock equivalent is not traded, each such capital stock equivalent shall have the value of one one-thousandth of a
Preferred Share. 
  
 (d) The holder of a Right,
by the acceptance of the Right, expressly waives his right to receive any fractional Rights or any fractional share upon exercise of a Right (except as permitted by this Section 14). 
  
 (e) Whenever a payment for fractional Rights or fractional
shares is to be made by the Rights Agent, the Corporation shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices and/or formulas utilized in
calculating such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate and shall have no duty
with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional shares under any Section of this Agreement relating to the payment of fractional Rights or fractional shares unless and until the Rights
Agent shall have received such a certificate and sufficient monies. 
  
 Section 15. Rights of Action. All rights of action in respect of this Agreement (except the rights of action given to the Rights Agent under Section 18 hereof) are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent
or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Shares), may, in his own behalf and for his own benefit, enforce, and may institute and maintain any suit, action or proceeding against the
Corporation to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Right Certificate (or, prior to the Distribution Date, such Common Shares) in the manner provided in such Right Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled
to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement. 
  
 Section 16. Agreement of Right Holders. Every holder of a Right, by accepting the same, consents and agrees with
the Corporation and the Rights Agent and with every other holder of a Right as follows: 
  
 (a) Prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Shares. 

 
 (b) After the Distribution Date, the Right Certificates
are transferable only on the registry books of the Rights Agent if surrendered at the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate form or
certificate fully executed. 
  

 25 

 (c) Subject to Sections 6 and 7(f) hereof, the Corporation and the Rights Agent may deem
and treat the Person in whose name the Right Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of
ownership or writing on the Right Certificate or the associated Common Shares certificate made by anyone other than the Corporation or the Rights Agent) for all purposes whatsoever, and neither the Corporation nor the Rights Agent, subject to the
last sentence of Section 7(e) hereof, shall be affected by any notice to the contrary. 
  
 (d) Notwithstanding anything in this Agreement to the contrary, neither the Corporation nor the Rights Agent shall have any liability to
any holder of a Right or a beneficial interest in a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment or
ruling (whether interlocutory or final) issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, the Corporation must use its best efforts to have any such order, decree, judgment or ruling lifted or otherwise overturned as soon as
possible. 
  
 Section 17. Right Certificate Holder Not
Deemed a Stockholder. No holder of any Right Certificate, as such, shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares or any other securities of the Corporation which may at any time be
issuable upon the exercise or exchange of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of
the Corporation or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or other distributions or to exercise any preemptive or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate
shall have been exercised or exchanged in accordance with the provisions hereof. 
  
 Section 18. Concerning the Rights Agent. 
  
 (a) The Corporation agrees to pay to the Rights Agent reasonable compensation for all services rendered by the Rights Agent hereunder and,
from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, delivery, amendment, administration and execution of this Agreement and the exercise and performance of
its duties hereunder. The Corporation also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including, without limitation,
the reasonable fees and expenses of legal counsel), incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (which gross negligence, bad faith or willful misconduct must be determined by a final,
non-appealable order, judgment, decree or ruling of a court of competent jurisdiction), for any action taken, suffered or omitted by 

  

 26 

 
the Rights Agent in connection with the acceptance and administration of this Agreement or the exercise or performance of its duties hereunder, including,
without limitation the reasonable costs and expenses of defending against any claim of liability in the premises. The costs and expenses incurred by the Rights Agent in enforcing this right of indemnification shall be paid by the Corporation. The
provisions of this Section 18 and Section 20 below shall survive the expiration or exercise of the Rights, the termination of this Agreement, and the resignation, removal or replacement of the Rights Agent. 
  
 (b) The Rights Agent shall be authorized and protected and
shall incur no liability for, or in respect of, any action taken, suffered or omitted by it in connection with the acceptance and administration of this Agreement or the exercise or performance of its duties hereunder in reliance upon any Right
Certificate or certificate for Common Shares or for other securities of the Corporation, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement, or
other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof. The
Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take any action in connection
therewith unless and until it has received such notice. 
  
 Section 19. Merger or Consolidation or Change of Name of Rights Agent. 
  
 (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights
Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such Person would be eligible for appointment as a successor Rights Agent under the provisions of
Section 21 hereof. In case, at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt
the countersignature of a predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right
Certificates either in the name of the predecessor or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 
  
 (b) In case at any time the name of the Rights Agent shall
be changed and at such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time
any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement. 
  

 27 

 Section 20. Duties of Rights Agent. The Rights Agent undertakes to perform only the duties
and obligations expressly imposed by this Agreement (and no implied duties or obligations) upon the following terms and conditions, by all of which the Corporation and the holders of Right Certificates, by their acceptance thereof, shall be bound:

  
 (a) The Rights Agent may consult with legal
counsel (who may be legal counsel for the Corporation or any employee of the Rights Agent), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent with respect to, and the Rights Agent
shall incur no liability for or in respect of, any action taken, suffered or omitted by it in accordance with such advice or opinion. 
  
 (b) Whenever, in the performance of its duties under this Agreement, the Rights Agent shall deem it necessary or desirable that any fact
or matter (including without limitation the identity of an Acquiring Person and the determination of the current market price of any Security) be proved or established by the Corporation prior to the Rights Agent’s taking, suffering or omitting
to take any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by any one of the Chairman of the Board,
the Chief Executive Officer, the President, any Vice President, the Treasurer or the Secretary of the Corporation and delivered to the Rights Agent; and such certificate shall be full authorization and protection to the Rights Agent with respect to,
and the Rights Agent shall incur no liability for or in respect of, any action taken, suffered or omitted by it under the provisions of this Agreement in reliance upon such certificate. 
  
 (c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful
misconduct (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction). Anything to the contrary notwithstanding, in no case will the
Rights Agent be liable for special, indirect, punitive, incidental or consequential loss or damages of any kind whatsoever (including without limitation lost profits), even if the Rights Agent has been advised of the possibility of such damages. Any
loss or liability of the Rights Agent under this Agreement will be limited to the amount of fees paid by the Corporation to the Rights Agent pursuant to this Agreement. 
  
 (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals
contained in this Agreement or in the Right Certificates (except its countersignature on such Right Certificates) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Corporation
only. 
  
 (e) The Rights Agent shall not have any
liability for or be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate
(except its countersignature thereof); nor shall it be responsible for any breach by the Corporation of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any change in the
exercisability of the Rights 

  

 28 

 
(including without limitation the Rights becoming null and void pursuant to Section 7(e) hereof) or any adjustment required under the provisions of
Section 3, 11, 13, 23 or 24 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights
evidenced by Right Certificates after receipt by the Rights Agent of a certificate pursuant to Section 12 hereof describing such change or adjustment, upon which the Rights Agent may rely); nor shall it by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any Preferred Shares or Common Shares to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares or Common Shares will, when issued,
be duly authorized, validly issued, fully paid and non-assessable. 
  
 (f) The Corporation agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may
reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 
  
 (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Treasurer or the Secretary of the Corporation, and to apply to such officers for advice or instructions in connection with its duties, and such
instructions shall be full authorization and protection to the Rights Agent and the Rights Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with instructions of any such officer or for any delay in
acting while waiting for those instructions. Any application by the Rights Agent for written instructions from the Corporation may, at the option of the Rights Agent, set forth in writing any action proposed to be taken, suffered or omitted by the
Rights Agent under this Rights Agreement and the date on or after which such action shall be taken or suffered or such omission shall be effective. The Rights Agent shall not be liable for any action taken, suffered or omitted to be taken by the
Rights Agent in accordance with a proposal included in any such application on or after the date specified in such application (which date shall not be less than five Business Days after the date any officer of the Corporation actually receives such
application, unless any such officer shall have consented in writing to an earlier date) unless, prior to taking, suffering or omitting any such action (or the effective date in the case of an omission), the Rights Agent shall have received written
instruction in response to such application specifying the action to be taken, suffered or omitted. 
  
 (h) The Rights Agent and any stockholder, director, Affiliate, officer or employee of the Rights Agent may buy, sell or deal in any of the
Rights or other securities of the Corporation or become pecuniarily interested in any transaction in which the Corporation may be interested, or contract with or lend money to the Corporation or otherwise act as fully and freely as though it were
not the Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Corporation or for any other Person. 
  
 (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any
duty hereunder either itself (through its directors, officers and employees) or by or through its attorneys or agents, and the Rights Agent shall not be answerable 

  

 29 

 
or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Corporation or any other Person resulting
from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a
court of competent jurisdiction) in the selection and continued employment thereof. 
  
 (j) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of its rights if it believes that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 
  
 (k) If, with respect to any Rights Certificate surrendered
to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 or 2 thereof, the
Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Corporation. 
  
 Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this
Agreement upon 30 days’ notice in writing mailed to the Corporation and to each transfer agent of the Common Shares or Preferred Shares by registered or certified mail, and, following the Distribution Date, to the holders of the Right
Certificates by first-class mail. The Corporation may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of
the Common Shares or Preferred Shares by registered or certified mail, and, following the Distribution Date, to holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable
of acting, the Corporation shall appoint a successor to the Rights Agent. If the Corporation shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Corporation), then the registered holder of any Right
Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Corporation or by such a court, shall be (a) a Person organized and doing business
under the laws of the United States or the laws of any state of the United States or the District of Columbia, in good standing, having an office in the State of New York, which is authorized under such laws to exercise corporate trust or stock
transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50,000,000, or (b) an Affiliate of a Person
described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed;
however, the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment the Corporation shall file notice thereof in 

  

 30 

 
writing with the predecessor Rights Agent and each transfer agent of the Common Shares or Preferred Shares, and, following the Distribution Date, mail a
notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal
of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
  
 Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Corporation may, at its option, issue new Right Certificates
evidencing Rights in such form as may be approved by the Board to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement. 
  
 Section 23. Redemption and Termination. 
  
 (a) (i) The Board may, at its option, redeem all but not less than all the then outstanding Rights at a redemption price of $0.01 per Right, as such amount may be appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”), at any time prior to the earlier of (A) the occurrence of a
Section 11(a)(ii) Event, or (B) the Final Expiration Date. The Corporation may, at its option, pay the Redemption Price either in Common Shares (based on the “current per share market price,” as defined in Section 11(d)
hereof, of the Common Shares at the time of redemption) or cash; provided, that if the Corporation elects to pay the Redemption Price in Common Shares, the Corporation shall not be required to issue any fractional Common Shares and the number of
Common Shares issuable to each holder of Rights shall be rounded down to the next whole share. 
  
 (ii) In addition, the Board may, at its option, at any time following the occurrence of a Section 11(a)(ii) Event and the expiration
of any period during which the holder of Rights may exercise the rights under Section 11(a)(ii) but prior to any Section 13 Event, redeem all but not less than all of the then outstanding Rights at the Redemption Price (A) in
connection with any merger, consolidation or sale or other transfer (in one transaction or in a series of related transactions) of assets or earning power aggregating 50% or more of the earning power of the Corporation and its Subsidiaries (taken as
a whole) in which all holders of Common Shares are treated alike and not involving (other than as a holder of Common Shares being treated like all other such holders) an Interested Stockholder, or (B)(1) if and for so long as the Acquiring Person is
not thereafter the Beneficial Owner of 10% or more of the Common Shares, and (2) at the time of redemption no other Persons are Acquiring Persons. 
  
 (b) In the case of a redemption permitted under Section 23(a)(i) hereof, immediately upon the date for redemption set forth (or
determined in the manner specified) in a resolution of the Board ordering the redemption of the Rights, evidence of which shall have been filed with the Rights Agent, and without any further action and without any notice, the right to exercise the
Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so held. In the case of a redemption permitted only under Section 23(a)(ii) hereof, evidence of which shall
have been filed with the Rights Agent, 

  

 31 

 
the right to exercise the Rights will terminate and represent only the right to receive the Redemption Price upon the later of 10 Business Days following the
giving of such notice or the expiration of any period during which the rights under Section 11(a)(ii) may be exercised. The Corporation shall promptly give written notice of any such redemption to the Rights Agent and the holders of the Rights
in the manner set forth in Section 26 hereof; provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within 10 days after such date for redemption set forth in a
resolution of the Board ordering the redemption of the Rights, the Corporation shall mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or,
prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of
redemption will state the method by which the payment of the Redemption Price will be made. Neither the Corporation nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than
that specifically set forth in this Section 23 or in Section 24 hereof and other than in connection with the purchase of Common Shares prior to the Distribution Date. 
  
 (c) The Corporation may, at its option, discharge all of its obligations with respect to the Rights by
(i) issuing a press release announcing the manner of redemption of the Rights in accordance with this Agreement (with prompt written notice thereof to the Rights Agent) and (ii) mailing payment of the Redemption Price to the registered
holders of the Rights at their last addresses as they appear on the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent of the Common Shares, and, upon such action, all outstanding
Rights and Right Certificates shall be null and void without any further action by the Corporation. 
  
 Section 24. Exchange. 
  
 (a) The Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of Section 7(e) or 11(a)(ii) hereof) for Common Shares of the Corporation at an exchange ratio of one Common Share per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the
Board shall not be empowered to effect such exchange at any time after any Person (other than the Corporation, any Subsidiary of the Corporation, any employee benefit plan of the Corporation or any such Subsidiary, any Person organized, appointed or
established by the Corporation for or pursuant to the terms of any such plan or any trustee, administrator or fiduciary of such a plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the
Common Shares then outstanding. 
  
 (b)
Immediately upon the action of the Board ordering the exchange of any Rights pursuant to Section 24(a) hereof and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter
of the holders of 

  

 32 

 
such Rights shall be to receive that number of Common Shares equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The
Corporation shall promptly give public notice and written notice to the Rights Agent of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Corporation
shall promptly mail a notice of any such exchange to the Rights Agent and to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Shares for Rights will be effected and, in the event of any partial exchange, the
number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 7(e) or 11(a)(ii) hereof) held by
each holder of Rights. 
  
 (c) In any exchange
pursuant to this Section 24, the Corporation, at its option, may substitute Preferred Shares (or equivalent preferred shares, as such term is defined in Section 11(b) hereof) for some or all of the Common Shares exchangeable for Rights, at
the initial rate of one one-thousandth of a Preferred Share (or equivalent preferred share) for each Common Share, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Shares pursuant to the terms thereof, so that
the fraction of a Preferred Share delivered in lieu of each Common Share shall have the same dividend, liquidation and voting rights as one Common Share. 
  
 (d) In the event that there shall not be sufficient Common Shares or Preferred Shares issued but not outstanding or authorized but
unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Corporation shall take all such action as may be necessary to authorize additional Common Shares or Preferred Shares for issuance upon exchange of
the Rights. 
  
 Section 25. Notice of Certain Events.

  
 (a) In case the Corporation shall, at any
time after the Distribution Date, propose (i) to pay any dividend payable in stock of any class to the holders of its Preferred Shares or to make any other distribution to the holders of its Preferred Shares (other than a regularly quarterly
cash dividend), (ii) to offer to the holders of its Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to
effect any reclassification of its Preferred Shares (other than a reclassification involving only the subdivision or combination of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with any other Person (other
than a Subsidiary of the Corporation in a transaction which does not violate Section 11(n) hereof), or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer) in one or more
transactions, of 50% or more of the assets or earning power of the Corporation and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Corporation and/or any of its Subsidiaries in one or more transactions each of
which does not violate Section 11(n) hereof), or (v) to effect the liquidation, dissolution or winding up of the Corporation, then, in each such case, the Corporation shall give 

  

 33 

 
to each holder of a Right Certificate (with prompt written notice thereof to the Rights Agent), in accordance with Section 26 hereof, a notice of such
proposed action and shall file a certificate with the Rights Agent to that effect, which shall specify the record date for the purposes of such dividend, distribution or offering of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of the Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the
case of any action covered by clause (i) or (ii) above at least 20 days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action, at least 20 days prior
to the date of the taking of such proposed action or the date of participation therein by the holders of the Preferred Shares, whichever shall be the earlier. The failure to give notice required by this Section 25 or any defect therein shall
not affect the legality or validity of the action taken by the Corporation or the vote upon any such action. 
  
 (b) Notwithstanding anything in this Agreement to the contrary, prior to the Distribution Date, a public filing by the Corporation with
the Securities and Exchange Commission (with prompt written notice thereof to the Rights Agent) shall constitute sufficient notice to the holders of securities of the Corporation, including without limitation the Rights, for purposes of this
Agreement and no other notice need be given to such holders. 
  
 (c) In case of a Section 11(a)(ii) Event, then (i) the Corporation shall, as soon as practicable thereafter, give to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of
the occurrence of such event (with prompt written notice thereof to the Rights Agent), which notice shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof, and (ii) all references
in Section 25(a) hereof to Preferred Shares shall be deemed thereafter to refer also to Common Shares and/or, if appropriate, other securities of the Corporation. 
  
 Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or
by the holder of any Right Certificate to or on the Corporation shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed as follows (or to such other address or addresses as the Corporation shall specify in writing
to the Rights Agent) or by facsimile transmission: 
  
 Quicksilver
Resources Inc. 
 777 West Rosedale Street 
 Fort Worth, Texas 76104 
 Attention: General Counsel 
 Facsimile No.: (817) 665-5004 
  

 34 

 Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or
made by the Corporation or by the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed as follows (or to such other address or addresses as the Rights
Agent shall specify in writing to the Corporation) or by facsimile transmission: 
  

					
	 	 	 Mellon Investor Services LLC
 600 North Pearl Street,
Suite 1010
 Dallas, Texas 75201-2884
 Attention: Relationship
Manager
 Facsimile No.: (214) 922-4455
	 	 
			
	 	 	with a copy to:	 	 
			
	 	 	 Mellon Investor Services LLC
 Newport Office Center
VII
 480 Washington Blvd.
 Jersey City, New Jersey
07310
 Attention: General Counsel
 Facsimile No.:
(201) 680-4637
	 	 

  
 Notices or demands authorized by this
Agreement to be given or made by the Corporation or the Rights Agent to the holder of any Right Certificate or, if prior to the Distribution Date, to the holder of certificates representing Common Shares shall be sufficiently given or made if sent
by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Corporation. 
  
 Section 27. Supplements and Amendments. Prior to the Distribution Date, the Corporation and the Rights Agent shall, if the Corporation so
directs, supplement or amend any provision of this Agreement, subject to the other terms and conditions of this Agreement, without the approval of any holders of certificates representing Common Shares. From and after the Distribution Date, the
Corporation and the Rights Agent shall, if the Corporation so directs, supplement or amend this Agreement without the approval of any holders of Right Certificates in order (a) to cure any ambiguity, (b) to correct or supplement any
provision contained herein which may be defective or inconsistent with any other provisions herein, (c) to shorten or lengthen any time period hereunder, or (d) to change or supplement the provisions hereof in any manner which the
Corporation may deem necessary or desirable and which shall not adversely affect the interests of the holders of Right Certificates (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, however, that this
Agreement may not be supplemented or amended to lengthen, pursuant to clause (c) of this sentence, (i) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable, or (ii) any other
time period unless such lengthening is for the purpose of protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Corporation which
states that the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment, provided that such supplement or amendment does not adversely affect the rights,
duties, liabilities or obligations of the Rights Agent under this 

  

 35 

 
Agreement. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common
Shares. 
  
 Section 28. Determination and Actions by the
Board, Etc. The Board shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board or the Corporation, or as may be necessary or advisable in the administration
of this Agreement, including without limitation the right and power to (a) interpret the provisions of this Agreement, and (b) make all determinations deemed necessary or advisable for the administration of this Agreement (including
without limitation a determination to redeem or exchange or not to redeem or exchange the Rights or to amend this Agreement and whether any proposed amendment adversely affects the interests of the holders of Right Certificates). For all purposes of
this Agreement, any calculation of the number of Common Shares or other securities outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares or any other securities of which
any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement. All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Corporation,
the Rights Agent, the holders of the Right Certificates and all other Persons, and (y) not subject the Board to any liability to the holders of the Right Certificates. The Rights Agent shall always be entitled to assume that the
Corporation’s Board of Directors acted in good faith and shall be fully protected and incur no liability in reliance thereon. 
  
 Section 29. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Corporation or the Rights Agent shall
bind and inure to the benefit of their respective successors and assigns hereunder. 
  
 Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Corporation, the Rights Agent and the registered holders of the Right Certificates
(and, prior to the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Corporation, the Rights Agent and the registered
holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares). Notwithstanding anything to the contrary contained in this Agreement, this Agreement shall be construed to provide to the registered holders of
uncertificated Common Shares (prior to the Distribution Date) and to the registered holders of Rights issued with respect to such uncertificated Common Shares (on and after the Distribution date) benefits, rights, remedies and claims under this
Agreement that are identical to the benefits, rights, remedies and claims under this Agreement provided to the registered holders of certificated Common Shares (prior to the Distribution Date) and to the registered holders of certificated Rights (on
and after the Distribution Date), subject only to such minimal differences in processes and procedures that may be necessary or appropriate to accommodate the differences in the manner in which certificated and uncertificated Common Shares and
Rights are evidenced. 
  

 36 

 Section 31. Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated. 
  
 Section 32.
Governing Law. This Agreement, each Right and each Right Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the
laws of such State applicable to contracts made and to be performed entirely within such State; except that all provisions regarding the rights, duties and obligations of the Rights Agent shall be governed by and construed in accordance with the law
of the State of New York applicable to contracts made and to be performed entirely within such state. 
  
 Section 33. Counterparts. This Agreement may be executed in any number of counterparts, each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
  
 Section 34. Descriptive Headings. Descriptive headings of the several Sections of this Agreement are inserted for convenience of reference
only and shall not control or affect the meaning or construction of any of the provisions hereof. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers, all as of the day and year
first above written. 
  

			
	 QUICKSILVER RESOURCES INC.

		
	By:	 	/s/    PHILIP COOK        
	 Name:
	 	Philip W. Cook
	 Title:
	 	Senior Vice President-Chief Financial Officer
	
	 MELLON INVESTOR SERVICES LLC

		
	By:	 	/s/    DEANNA AKIN        
	 Name:
	 	Deanna Akin
	 Title:
	 	Client Relationship Executive

  

 37 

 Exhibit A 
  

Form of 
 Amended and Restated Certificate of
Designation 
 of 
 Series A Junior
Participating Preferred Stock 
 of 
 Quicksilver Resources Inc. 
 (Pursuant to Section 151 of the General 
 Corporation Law of the State of Delaware) 
  
 Quicksilver Resources Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter called the “Corporation”), in accordance with the provisions of
Section 151 and 103 thereof, DOES HEREBY CERTIFY: 
  
 1. No
shares of Series A Junior Participating Preferred Stock of the Corporation, as of the date of this Certificate, have been issued. 
  
 2. A resolution providing for the amendment and restatement of the Certificate of Designation of the Series A Junior Participating Preferred Stock of the
Corporation was duly adopted by the Board of Directors of the Corporation (hereinafter called the “Board of Directors”), which resolution provides as follows: 
  
 RESOLVED, that the Certificate of Designation of Series A Junior Participating Preferred Stock of the Corporation, to be
filed with the Delaware Secretary of State on or about December 21, 2005, shall be amended and restated to conform the provisions thereof to the form thereof constituting Exhibit A to the Amended and Restated Rights Agreement, by and between
Quicksilver Resources Inc. and Mellon Investor Services LLC, as rights agent. 
  
 3. The provisions set forth below are the amended and restated provisions authorized by the resolution set forth above. 
  
 Section 1. Designation, Par Value and Amount. The shares of such series shall be designated as “Series A Junior Participating Preferred
Stock” (hereinafter referred to as “Series A Preferred Stock”), the shares of such series shall be with par value of $0.01 per share, and the number of shares constituting such series shall be 100,000. Such number of shares of
the Series A Preferred Stock may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares then outstanding
plus the number of shares issuable upon exercise or conversion of outstanding rights, options or other securities issued by the Corporation. 
  
 Section 2. Dividends and Distributions. 
  
 (a) Subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior to
the shares of Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock, in preference to the 

  

 A-1 

 
holders of shares of any class or series of stock of the Corporation ranking junior to the Series A Preferred Stock in respect thereof, shall be entitled to
receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the first business day of January, April, July and October of each year (each such date being referred
to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred Stock, in an amount per share (rounded to
the nearest cent) equal to the greater of (A) $1.00 or (B) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions (other than a dividend payable in shares of Common Stock, par value $0.01 per share, of the Corporation (the “Common Stock”) or a subdivision of the outstanding shares of
Common Stock, by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Preferred Stock. In the event the Corporation shall at any time after the first issuance of a share or fractional share of Series A Preferred Stock (the “Initial Issuance Date”) (i) declare or
pay any dividend on the Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then, in each such case, the amount to
which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under clause (B) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
  
 (b) The Corporation shall declare a dividend or distribution
on the Series A Preferred Stock as provided in paragraph (a) of this Section 2 immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock or a subdivision of the
outstanding shares of Common Stock); provided, that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend
Payment Date (or, with respect to the first Quarterly Dividend Payment Date, the period between the first issuance of any share or fraction of a share of Series A Preferred Stock and such first Quarterly Dividend Payment Date), a dividend of $1.00
per share on the Series A Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 
  
 (c) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series A Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue and be cumulative from the date of issue of such shares, or unless the date of issue is a date after the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and
on or before such Quarterly Dividend Payment Date, in which case dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. 

  

 A-2 

 
Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such
shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive
payment of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof. 
  
 Section 3. Voting Rights. In addition to any other voting rights required by law, the holders of shares of Series A Preferred Stock shall have
the following voting rights: 
  
 (a) Except as
provided in paragraph (c) of this Section 3 and subject to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the
stockholders of the Corporation. In the event the Corporation shall, at any time after the Initial Issuance Date. 
  
 (i) declare or pay any dividend on the Common Stock payable in shares of Common Stock, 
  
 (ii) subdivide the outstanding Common Stock, or 

 
 (iii) combine the outstanding Common Stock into a smaller
number of shares, then in each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
  
 (b) Except as otherwise provided herein or by law, the
holders of shares of Series A Preferred Stock and the holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 
  
 (c) (i) If, on the date used to determine stockholders
of record for any meeting of stockholders for the election of directors, a default in preference dividends (as defined in subparagraph (v) below) on the Series A Preferred Stock shall exist, the holders of the Series A Preferred Stock shall
have the right, voting as a class as described in subparagraph (ii) below, to elect two directors (in addition to the directors elected by holders of Common Stock). Such right may be exercised (A) at any meeting of stockholders for the
election of directors or (B) at a meeting of the holders of shares of Voting Preferred Stock (as hereinafter defined), called for the purpose in accordance with the By-laws of the Corporation, until all such cumulative dividends (referred to
above) shall have been paid in full or until non-cumulative dividends have been paid regularly for at least one year. 
  
 (ii) The right of the holders of Series A Preferred Stock to elect two directors, as described above, shall be exercised as a class
concurrently with the rights of holders of any other series of Preferred Stock upon which voting rights to elect such directors have been conferred and are then exercisable. The Series A Preferred Stock and any additional series of Preferred Stock
which the Corporation may issue and which may provide for the right to vote 

  

 A-3 

 
with the foregoing series of Preferred Stock are collectively referred to herein as “Voting Preferred Stock.” 
  
 (iii) Each director elected by the holders of shares of
Voting Preferred Stock shall be referred to herein as a “Preferred Director.” A Preferred Director so elected shall continue to serve as such director for a term of one year, except that upon any termination of the right of all of
such holders to vote as a class for Preferred Directors, the term of office of the Preferred Directors shall terminate. Any Preferred Director may be removed by, and shall not be removed except by, the vote of the holders of record of a majority of
the outstanding shares of Voting Preferred Stock then entitled to vote for the election of directors, present (in person or by proxy) and voting together as a single class (A) at a meeting of the stockholders, or (B) at a meeting of the
holders of shares of such Voting Preferred Stock, called for the purpose in accordance with the By-laws of the Corporation, or (C) by written consent signed by the holders of a majority of the then outstanding shares of Voting Preferred Stock
then entitled to vote for the election of directors, taken together as a single class. 
  
 (iv) So long as a default in any preference dividends on the Series A Preferred Stock shall exist or the holders of any other series of
Voting Preferred Stock shall be entitled to elect Preferred Directors, (A) any vacancy in the office of a Preferred Director may be filled (except as provided in the following clause (B)) by an instrument in writing signed by the remaining
Preferred Director and filed with the Corporation and (B) in the case of the removal of any Preferred Director, the vacancy may be filled by the vote or written consent of the holders of a majority of the outstanding shares of Voting Preferred
Stock then entitled to vote for the election of directors, present (in person or by proxy) and voting together as a single class, at such time as the removal shall be effected. Each director appointed as aforesaid by the remaining Preferred Director
shall be deemed, for all purposes hereof, to be a Preferred Director. Whenever (x) no default in preference dividends on the Series A Preferred Stock shall exist and (y) the holders of other series of Voting Preferred Stock shall no longer
be entitled to elect such Preferred Directors, then the number of directors constituting the Board of Directors of the Corporation shall be reduced by two. 
  
 (v) For purposes hereof, a “default in preference dividends” on the Series A Preferred Stock shall be deemed to have
occurred whenever the amount of cumulative and unpaid dividends on the Series A Preferred Stock shall be equivalent to six full quarterly dividends or more (whether or not consecutive), and, having so occurred, such default shall be deemed to exist
thereafter until, but only until, all cumulative dividends on all shares of the Series A Preferred Stock then outstanding shall have been paid through the last Quarterly Dividend Payment Date or until, but only until, non-cumulative dividends have
been paid regularly for at least one year. 
  
 (d) Except as set forth herein (or as otherwise required by applicable law), holders of Series A Preferred Stock shall have no general or special voting rights and their consent shall not be required for taking any corporate action.

  

 A-4 

 Section 4. Certain Restrictions. 
  
 (a) Whenever quarterly dividends or other dividends or
distributions payable on the Series A Preferred Stock as provided in Section 2 above are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock
outstanding shall have been paid in full, the Corporation shall not: 
  
 (i) declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock; 

 
 (ii) declare or pay dividends, or make any other
distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity
stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 
  
 (iii) redeem or purchase or otherwise acquire for value any shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Preferred Stock; provided, that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking junior
(either as to dividends or upon dissolution, liquidation or winding up) to the Series A Preferred Stock; or 
  
 (iv) redeem or purchase or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a
parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders
of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair
and equitable treatment among the respective series or classes. 
  
 (b) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph
(a) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 
  
 Section 5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock
subject to the conditions and restrictions on issuance set forth herein, in the Certificate of Incorporation, in any other Certificate of Designations creating a series of Preferred Stock or as otherwise required or permitted by law. 
  

 A-5 

 Section 6. Liquidation, Dissolution or Winding Up. 
  
 (a) Subject to the prior and superior rights of holders of
any shares of any series of Preferred Stock ranking prior and superior to the shares of Series A Preferred Stock with respect to rights upon liquidation, dissolution or winding up (voluntary or otherwise), upon any liquidation, dissolution or
winding up of the Corporation (voluntary or otherwise), no distribution shall be made to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless,
prior thereto, the holders of shares of Series A Preferred Stock shall have received $1,000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment (the
“Series A Liquidation Preference”). Following the payment of the full amount of the Series A Liquidation Preference, no additional distributions shall be made to the holders of shares of Series A Preferred Stock unless, prior
thereto, the holders of shares of Common Stock shall have received an amount per share (the “Capital Adjustment”) equal to the quotient obtained by dividing (i) the Series A Liquidation Preference by (ii) 1,000 (as
appropriately adjusted as set forth in paragraph (c) of this Section 6) (such number in clause (ii) being hereinafter referred to as the “Adjustment Number”). Following the payment of the full amount of the Series A
Liquidation Preference and the Capital Adjustment in respect of all outstanding shares of Series A Preferred Stock and Common Stock, respectively, holders of Series A Preferred Stock and holders of Common Stock shall receive their ratable and
proportionate share of the remaining assets to be distributed in the ratio of the Adjustment Number to 1 with respect to such Preferred Stock and Common Stock, on a per share basis, respectively. 
  
 (b) In the event, however that there are not sufficient
assets available to permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other series of Preferred Stock, if any, which rank on a parity with the Series A Preferred Stock, then such remaining assets
shall be distributed ratably to the holders of Series A Preferred Stock and the holders of such parity shares in proportion to their respective liquidation preferences. In the event, however, that there are not sufficient assets available to permit
payment in full of the Capital Adjustment, then such remaining assets shall be distributed ratably to the holders of Common Stock. 
  
 (c) In the event the Corporation shall at any time after the Initial Issuance Date (i) declare or pay any dividend on the Common
Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the Adjustment Number in effect immediately prior
to such event shall be adjusted by multiplying such Adjustment Number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of
Common Stock that were outstanding immediately prior to such event. 
  
 Section 7. Consolidation, Merger, Combination, Etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other
stock or securities, cash and/or any other property, then in any such case the shares of Series A Preferred Stock shall at the same time be 

  

 A-6 

 
similarly exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 1,000 times the aggregate
amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time after the Initial
Issuance Date (i) declare or pay any dividend on the Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then
in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares
of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
  
 Section 8. No Redemption. The shares of Series A Preferred Stock shall not be redeemable. 
  
 Section 9. Ranking. The Series A Preferred Stock shall rank
junior to all other series of the Corporation’s Preferred Stock as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. 
  
 Section 10. Amendment. At any time that any shares of Series A
Preferred Stock are outstanding, the Certificate of Incorporation shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Preferred Stock so as to affect them adversely
without the affirmative vote of the holders of a majority or more of the outstanding shares of Series A Preferred Stock, voting separately as a class. 
  
 Section 11. Fractional Shares. Series A Preferred Stock may be issued in fractions of a share which shall entitle the holder, in proportion to
such holder’s fractional shares, to exercise voting rights, to receive dividends, to participate in distributions and to have the benefit of all other rights of holders of Series A Preferred Stock. 
  
 IN WITNESS WHEREOF, this Certificate of Designation is executed on behalf of
the Corporation by a duly authorized officer this              day of
                            , 2005. 
  

			
	 Quicksilver Resources Inc.

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  

 A-7 

 Exhibit B 
  

Form of Right Certificate 
  
 Certificate 
  

			
	No. R-	  	             Rights

  
 NOT EXERCISABLE AFTER THE EARLIER OF
MARCH 11, 2013, AND THE DATE ON WHICH THE RIGHTS EVIDENCED HEREBY ARE REDEEMED OR EXCHANGED AS SET FORTH IN THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.
AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON
BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, ARE NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHT CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING
PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHT CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY ARE NULL AND VOID.]* 
  
 Right Certificate 
  
 QUICKSILVER RESOURCES INC. 
  
 This Right Certificate certifies that                     , or registered assigns, is the registered owner of
the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of March 11, 2003, between Quicksilver Resources Inc., a Delaware corporation (the
“Corporation”), and Mellon Investor Services LLC (the “Rights Agent”), as the same may be amended from time to time (the “Rights Agreement”), to purchase from the Corporation at any time after the
Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 P.M., Dallas, Texas time, on March 11, 2013, at the office of the Rights Agent designated for such purpose, or at the office of its successor as Rights Agent,
one one-thousandth of a fully paid, non-assessable share of Series A Junior Participating Preferred Stock, with a par value of $0.01 per share (the “Preferred Shares”), of the Corporation, at a purchase price of $180.00 per one
one-thousandth of a Preferred Share (the “Purchase Price”), payable in lawful money of the United States of America, upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed.

	*	If applicable, insert this portion of the legend and delete the preceding sentence. 

  

 B-1 

 The number of Rights evidenced by this Right Certificate (and the number of one one-thousandths of a
Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of March 26, 2003, based on the Preferred Shares as constituted at such date and may have
been or in the future be adjusted as a result of the occurrence of certain events, as more fully provided in the Rights Agreement. 
  
 Upon the occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights Agreement), if the Rights evidenced by this Right Certificate
are beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement), (ii) a transferee of an Acquiring Person or any such Associate or Affiliate who
becomes a transferee after the Acquiring Person becomes such, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of an Acquiring Person or any such Associate or Affiliate who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event. 
  
 As provided in the Rights Agreement, the Purchase Price and the number of one
one-thousandth of a Preferred Share or other securities which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events, including Triggering
Events (as such term is defined in the Rights Agreement). 
  
 This
Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is
hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Corporation and the holders of the Right Certificates, which limitations of rights include the temporary
suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the principal executive offices of the Corporation and the office of the Rights Agent
designated for such purpose. 
  
 This Right Certificate, with or
without other Right Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of Preferred Shares or other securities as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in
part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised. 
  
 Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the
Corporation at a redemption price of $0.01 per Right (subject to adjustment as provided in the Rights Agreement) payable either in cash or the 

  

 B-2 

 
Corporation’s Common Shares, par value $0.01 per share, or (ii) may be exchanged in whole or in part for Common Shares or Preferred Shares.

  
 No fractional Preferred Shares or Common Shares will be issued
upon the exercise or exchange of any Right or Rights evidenced hereby (other than fractions of Preferred Shares which are one one-thousandth or integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the
Corporation, be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
  
 No holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of
any other securities of the Corporation which may at any time be issuable on the exercise or exchange hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of
a stockholder of the Corporation or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or other distributions or to exercise any preemptive or subscription rights, or otherwise, until the Right or Rights evidenced by this Right
Certificate shall have been exercised or exchanged as provided in the Rights Agreement. 
  
 This Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
  
 WITNESS the facsimile signature of the proper officers of the Corporation and its corporate seal. Dated as of
                            ,
            . 
  

									
	 ATTEST:
	 	 	 	 QUICKSILVER RESOURCES INC.

					
	 	 	 	 	 	 	 By:
	 	 
	 Name:
	 	 	 	 	 	 	 	 
	 Title:
	 	 	 	 	 	 	 	 

  

			
	 Countersigned:

	
	 MELLON INVESTOR SERVICES LLC

	 as Rights Agent

		
	 By: 
	 	 

			
	 	 	 Authorized Signatory

	 Name:
	 	 
	 Title:
	 	 

  

 B-3 

 Form of Reverse Side of Right Certificate 
  
 FORM OF ASSIGNMENT 
  
 (To be executed by the registered holder if such 
  
 holder desires to transfer the Right Certificate.) 
  
 FOR VALUE RECEIVED ___________________ hereby sells, assigns and transfers
unto__________________________________________________________________________________________________________ 
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (Please print name and
address of transferee) 
  
                          Rights represented by this Right Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and
appoint                                 Attorney, to transfer said Rights on the
books of the within-named Corporation, with full power of substitution. 
  

					
		
	Dated: _____________________	 	 
	 	 	 	 	 Signature

  
 Signature Guaranteed: 
  
 Signatures must be guaranteed by a bank, trust
company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion program. 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 CERTIFICATE 
  
 The undersigned hereby certifies, by checking the appropriate boxes and signing below, that: 
  
 (1) The Rights evidenced by this Right Certificate
             are              are not being sold, assigned or transferred by or on behalf of a Person who is or was
an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Right Agreement); and 
  
 (2) After due inquiry and to the best knowledge of the undersigned, the undersigned
             did              did not acquire the Rights evidenced by this Right Certificate from any Person who is
or was an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement). 
  

					
		
	Dated: _____________________	 	 
	 	 	 	 	 Signature

  

 B-4 

 FORM OF ELECTION TO PURCHASE 
  
 (To be executed by the registered holder 
 if such holder desires to exercise Rights 
 represented by the Right Certificate.) 
  
 To QUICKSILVER RESOURCES INC.: 
  
 The undersigned hereby irrevocably elects to exercise
                             Rights represented by this Right Certificate to purchase the Preferred
Shares, Common Shares or other securities issuable upon the exercise of such Rights and requests that certificates for such Preferred Shares, Common Shares or other securities be issued in the name of and delivered to: 
  
 Please insert social security or other identifying number.
                                        

  
 __________________________________ 
  
 __________________________________ 
  
 __________________________________ 
 (Please print name and address) 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be
registered in the name of and delivered to: 
  
 Please insert social security or
other identifying number
                                        

  
 __________________________________ 
  
 __________________________________ 
  
 __________________________________ 
 (Please print name and address) 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  

					
		
	Dated: _____________________	 	 
	 	 	 	 	 Signature

  
 Signature Guaranteed: 
  
 Signatures must be guaranteed
by a bank, trust company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion program. 
  

 B-5 

 CERTIFICATE 
  
 The undersigned hereby certifies, by checking the appropriate boxes and signing below, that: 
  
 (1) The Rights evidenced by this Right Certificate
             are              are not being exercised by or on behalf of a Person who is or was an Acquiring Person
or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement); and 
  
 (2) After due inquiry and to the best knowledge of the undersigned, the undersigned
             did              did not acquire the Rights evidenced by this Rights Certificate from any Person who
is or was an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement). 
  

									
					
	 Dated:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 Signature

  
 NOTICE 
  
 The signature on the foregoing Forms of Assignment and Election to Purchase
and certificates must conform to the name as written upon the face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever. 
  
 In the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case
may be, is not completed, the Corporation and the Rights Agent will deem the Beneficial Owner of the Rights evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights
Agreement) and such Assignment or Election to Purchase will not be honored. 
  

 B-6 

 Exhibit C 
  

SUMMARY OF RIGHTS TO PURCHASE 
 PREFERRED
SHARES OF 
 QUICKSILVER RESOURCES INC. 
  
 On March 11, 2003, the Board of Directors of Quicksilver Resources Inc. (the “Corporation”) declared a dividend distribution of one
preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share (the “Common Shares”), of the Corporation. The dividend is payable to the stockholders of record of
the Corporation on March 26, 2003 (the “Record Date”), and with respect to Common Shares issued thereafter until the Distribution Date (as defined below) and, in certain circumstances, with respect to Common Shares issued after
the Distribution Date. Except as set forth below, each Right, when it becomes exercisable, entitles the registered holder to purchase from the Corporation one one-thousandth of a share of Series A Junior Participating Preferred Stock, with a par
value of $0.01 per share, of the Corporation (the “Preferred Shares”) at a price of $100.00 per one one-thousandth of a Preferred Share (the “Purchase Price”), subject to adjustment. The description and terms of the
Rights are set forth in a Rights Agreement, as the same may be amended from time to time (the “Rights Agreement”), between the Corporation and Mellon Investor Services LLC, as Rights Agent, dated as of March 11, 2003.

  
 Initially, the Rights will be attached to all certificates
representing Common Shares then outstanding, and no separate Right Certificates will be distributed. The Rights will separate from the Common Shares upon the earlier to occur of (i) the first date of public announcement of a person or group of
affiliated or associated persons having acquired beneficial ownership of 15% or more of the outstanding Common Shares (except pursuant to a Permitted Offer, as hereinafter defined); or (ii) 10 days (or such later date as the Board of Directors
of the Corporation (the “Board”) may determine) following the commencement of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which would result in a person or group becoming an
Acquiring Person (as hereinafter defined) (the earlier of such dates being called the “Distribution Date”). A person or group whose acquisition of Common Shares causes a Distribution Date pursuant to clause (i) above is an
“Acquiring Person.” The first date of public announcement that a person or group has become an Acquiring Person is the “Shares Acquisition Date.” 
  
 The Rights Agreement provides that, until the Distribution Date, the Rights will be transferred with and only with the
Common Shares. Until the Distribution Date (or earlier redemption or expiration of the Rights) new Common Share certificates issued after the Record Date upon transfer or new issuance of Common Shares will contain a notation incorporating the Rights
Agreement by reference. Until the Distribution Date (or earlier redemption or expiration of the Rights), the surrender for transfer of any certificates for Common Shares outstanding as of the Record Date, even without such notation or a copy of this
Summary of Rights being attached thereto, will also constitute the transfer of the Rights associated with the Common Shares represented by such certificate. As soon as practicable following the Distribution Date, separate certificates evidencing the
Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as of the close of business on the Distribution Date (and to each initial record 

  

 C-1 

 
holder of certain Common Shares issued after the Distribution Date), and such separate Right Certificates alone will evidence the Rights. 
  
 The Rights are not exercisable until the Distribution Date and will expire at
the close of business on March 11, 2013, unless earlier redeemed or exchanged by the Corporation as described below. 
  
 In the event that any person or group becomes an Acquiring Person (except pursuant to a tender or exchange offer which is for all outstanding Common
Shares at a price and on terms which a majority of certain members of the Board determines to be adequate and in the best interests of the Corporation, its stockholders and other relevant constituencies, other than such Acquiring Person, its
affiliates and associates (a “Permitted Offer”)), each holder of a Right will thereafter have the right (the “Flip-In Right”) to receive upon exercise the number of Common Shares or of one one thousandths of a share
of Preferred Shares (or, in certain circumstances, other securities of the Corporation) having a value (immediately prior to such triggering event) equal to two times the exercise price of the Right. Notwithstanding the foregoing, following the
occurrence of the event described above, all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring Person or any affiliate or associate thereof will be null and void.

  
 In the event that, at any time following the Shares
Acquisition Date, (i) the Corporation is acquired in a merger or other business combination transaction in which the holders of all of the outstanding Common Shares immediately prior to the consummation of the transaction are not the holders of
all of the surviving corporation’s voting power, or (ii) more than 50% of the Corporation’s assets or earning power is sold or transferred, then each holder of a Right (except Rights which previously have been voided as set forth
above) shall thereafter have the right (the “Flip-Over Right”) to receive, upon exercise, common shares of the acquiring company having a value equal to two times the exercise price of the Right. The holder of a Right will continue
to have the Flip-Over Right whether or not such holder exercises or surrenders the Flip-In Right. 
  
 The Purchase Price payable, and the number of Preferred Shares, Common Shares or other securities issuable, upon exercise of the Rights are subject to
adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Shares, (ii) upon the grant to holders of the Preferred Shares of certain rights
or warrants to subscribe for or purchase Preferred Shares at a price, or securities convertible into Preferred Shares with a conversion price, less than the then current market price of the Preferred Shares or (iii) upon the distribution to
holders of the Preferred Shares of evidences of indebtedness or assets (excluding regular quarterly cash dividends) or of subscription rights or warrants (other than those referred to above). 
  
 The Purchase Price and number of outstanding Rights are also subject to
adjustment in the event of a stock split of the Common Shares or a stock dividend on the Common Shares payable in Common Shares or subdivisions, consolidations or combinations of the Common Shares occurring, in any such case, prior to the
Distribution Date. 
  

 C-2 

 Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each Preferred Share
will be entitled to a minimum preferential quarterly dividend payment of $1.00 per share but, if greater, will be entitled to an aggregate dividend per share of 1,000 times the dividend declared per Common Share. In the event of liquidation, the
holders of the Preferred Shares will be entitled to a minimum preferential liquidation payment of $1,000 per share; thereafter, and after the holders of the Common Shares receive a liquidation payment of $1.00 per share, the holders of the Preferred
Shares and the holders of the Common Shares will share the remaining assets in the ratio of 1,000 to 1 (as adjusted) for each Preferred Share and Common Share so held, respectively. Each Preferred Share will have 1,000 votes, voting together with
the Common Shares. Finally, in the event of any merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 1,000 times the amount received per Common Share. These rights are
protected by customary antidilution provisions. In the event that the amount of accrued and unpaid dividends on the Preferred Shares is equivalent to six full quarterly dividends or more, the holders of the Preferred Shares shall have the right,
voting as a class, to elect two directors in addition to the directors elected by the holders of the Common Shares until all cumulative dividends on the Preferred Shares have been paid through the last quarterly dividend payment date or until
non-cumulative dividends have been paid regularly for at least one year. 
  
 With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase Price. No fractional Preferred Shares will be issued
(other than fractions which are one one-thousandth or integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Board, be evidenced by depositary receipts) and in lieu thereof, an adjustment in cash will be
made based on the market price of the Preferred Shares on the last trading day prior to the date of exercise. 
  
 At any time prior to the earlier to occur of (i) a person becoming an Acquiring Person or (ii) the expiration of the Rights, and under certain
other circumstances, the Corporation may redeem the Rights in whole, but not in part, at a price of $0.01 per Right (the “Redemption Price”) which redemption shall be effective upon the action of the Board. Additionally, following
the Shares Acquisition Date, the Corporation may redeem the then outstanding Rights in whole, but not in part, at the Redemption Price, provided that such redemption is in connection with a merger or other business combination transaction or series
of transactions involving the Corporation in which all holders of Common Shares are treated alike but not involving an Acquiring Person or its affiliates or associates. 
  
 At any time after any person or group becomes an Acquiring Person and prior to the acquisition by such person or group of
50% or more of the outstanding Common Shares, the Board may exchange the Rights (other than Rights owned by the Acquiring Person, which will have become void), in whole or in part, at an exchange ratio of one Common Share, or one one-thousandth of a
Preferred Share (or of a share of a class or series of the Corporation’s preferred stock having equivalent rights, preferences and privileges), per Right (subject to adjustment). 
  
 All of the provisions of the Rights Agreement may be amended by the Board prior to the Distribution Date. After the
Distribution Date, the provisions of the Rights Agreement may be 

  

 C-3 

 
amended by the Board only in order to cure any ambiguity, defect or inconsistency, to make changes which do not adversely affect the interests of holders of
Rights (excluding the interests of any Acquiring Person), or, subject to certain limitations, to shorten or lengthen any time period under the Rights Agreement. 
  

Until a Right is exercised or exchanged, the holder thereof, as such, will have no right to vote or receive dividends and will have no other rights as
a stockholder of the Corporation. While the distribution of the Rights will not be taxable to stockholders of the Corporation, stockholders may, depending upon the circumstances, recognize taxable income should the Rights become exercisable or upon
the occurrence of certain events thereafter. 
  
 A copy of the
Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to the Corporation’s Registration Statement on Form 8-A dated March     , 2003. A copy of the Rights Agreement is available
free of charge from the Corporation. This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is hereby incorporated herein by reference. 
  

 C-4

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