Document:

CNSI - 4.30.2015 - Exhibit 10.5

Exhibit 10.5

                                                                                  
April 30, 2015    

Thomas Sabol
By Electronic Delivery

Dear Tom,

This letter agreement and general release (this “Letter”) summarizes the terms of separation that Comverse, Inc., on behalf of itself and its subsidiaries (collectively, the “Company” or the “Group Companies”) is willing to offer you. You are referred in some instances in this Letter as the “Executive.” Please read this Letter, which includes a general release, carefully.  If you agree to its terms, please sign in the space provided below where it indicates “Executive Acceptance” and return it to Kathleen Harris, Comverse, Inc., 200 Quannapowitt Parkway, Wakefield, MA 01880 within the time period set forth herein so that your separation benefits can begin.  

Your employment terms under which you have been employed to date are set forth in an employment agreement dated July 1, 2012, between you and the Company (the “Employment Agreement”).  Capitalized terms used but not otherwise defined herein, shall have the meaning ascribed thereto in the Employment Agreement.

1.Regardless of whether you sign this Letter, you will cease to serve as Senior Vice President and Chief Financial Officer on April 30, 2015 and your employment with the Company is terminated effective July 1, 2015 (the “Separation Date”). You will be paid for time worked through the Separation Date and for any unused and accrued PTO (if any) as of the Separation Date, less lawful deductions.  

2.After the Separation Date, except as provided below, you will not be entitled to receive any benefits paid by, or participate in any benefit programs offered by, the Company to its employees. You will receive, under separate cover, information concerning your right to continue your health insurance benefits after that date in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).  

3.In consideration for and in compliance with the representations and  promises made herein, and in the event you sign this Letter and Exhibit A “Waiver and Release Agreement” and return it to the Company within the time period set forth in this Letter and do not revoke your acceptance of this Letter pursuant to section 10 below, the Company will pay you, subject to section 8, the following:

		
	a.
	an aggregate gross amount of $560,000, less lawful deductions, payable as follows: (i) $90,000, less lawful deductions, on the first payroll date after the expiration of the seven (7) day revocation period described in Section 10, (ii) $225,000, less lawful deductions, payable on August 21, 2015, (iii) $95,000 on November 27, 2015,  (vi) $60,000 on February 26, 2016, and (v) $90,000 on April 8, 2016.     

		
	b.
	a pro-rata portion of your Cash  Bonus for  the fiscal year ending January 31, 2016 (determined by multiplying the amount of the Cash Bonus you would have been entitled to receive for the full fiscal year ending January 31, 2015 based on actual company and individual performance, by a fraction, the numerator of which is the number of days during the fiscal 

year ending January 31, 2016 that you were employed with the Company and the denominator of which is 365), less lawful deduction, payable only if any annual bonus is paid to other Company executives.  If payment of annual cash bonuses for the fiscal year ending January 31, 2016 is made to Company executives, any payment of a Cash Bonus to you will be made at the same time as such payment is made to executives of the Company, but in no event later than April 15, 2016.    

		
	c.
	in respect of equity, (i) shares to be issued to you upon vesting and settlement of certain of your restricted stock unit awards (“RSUs”) as of the Separation Date as set forth in Exhibit B hereto, and (ii) vesting as of the Separation Date of certain of your stock option awards as set forth in Exhibit B hereto.     Any vested stock option may be exercised by you following the Separation Date subject to and in accordance with the terms of the Employment Agreement and the applicable stock option award agreement.     For the avoidance of doubt, the number of vested RSUs and stock options set forth in Exhibit B shall be in addition to your RSUs  and options (or other equity grants) that have vested, or shall be vested, prior to the Separation Date.     

		
	d.
	Provided that you properly elect to continue your health coverage under COBRA, the Company will contribute toward the cost of your COBRA premiums in the same amount as if you were actively employed (provided that you timely pay your portion of such COBRA premium), with such contribution ending on the earlier of (i) 12 months from the Separation Date; or (ii) the date on which you become eligible for coverage under the group health plan of another employer.  Thereafter, you will be personally responsible for the full cost of any COBRA premiums.   You agree to notify the Company immediately upon becoming eligible for coverage under the group health plan of another employer during the period in which the Company is contributing toward the cost of your COBRA coverage.  Such payments by the Company will be treated as taxable income to you and amounts will be withheld from the severance payments under Section 3(a) to cover the Company’s tax withholding obligation with respect to these payments.   

4.You understand and agree that you would not receive the funds and other consideration specified in section 3 above except in consideration for your execution of this Letter and Waiver and Release Agreement and the fulfillment of the promises contained herein. 

5.By signing this Letter, you expressly affirm and acknowledge the following:    
         
a.      Nothing in this Letter (or Exhibit A) limits your right, where applicable, to file or participate in an investigative proceeding of any federal, state or local governmental agency, provided, however, that by signing this Letter, you waive the right to seek or receive any money damages based upon any claim that might be asserted arising out of your employment at the Company or separation therefrom; and    

         b.    You have been paid and have received all leave (paid or unpaid), compensation, wages, bonuses, commissions, relocation costs, and/or benefits to which you may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to you, except as provided in this Letter (including but not limited to continued payment and entitlement to all amounts, vesting and benefits to which you are entitled as an employee through the Separation Date); and      

         c.    You have no known workplace injuries or occupational diseases; and

         d.    You have not been retaliated against for reporting any allegations of wrongdoing by the Company or its officers, including any allegations of corporate fraud; and 

         e.    All decisions regarding your pay and benefits through the date of your execution of this Letter were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification protected by law.    

                       f.           As of the date hereof, you are in full compliance with the obligations set forth in Section 8 of the Employment Agreement.    

         g.      You are not entitled to receive any additional Severance Payments under Section 6 of the Employment Agreement.     
     
     6.    You acknowledge that the Company will be required to publicly disclose this Letter and its terms in accordance with its reporting obligations under applicable securities laws.

            7.      You hereby acknowledge and reaffirm the validity of the post-employment obligations contained in any agreement you executed with the Company relating to non-competition, non-solicitation, confidentiality, assignment of inventions, and non-disparagement, including the provisions set forth in Section 8 of the Employment Agreement, which for the avoidance of any doubt, are incorporated herein by reference and continue to apply and be in full force and effect following the termination of Executive’s employment in accordance with their terms. You further agree that you shall abide by any and all common-law and statutory obligations relating to protection and non-disclosure of trade secrets and confidential and proprietary documents and information.  You agree not to erase or destroy, and to return to the Company on or before the Separation Date, all documents (and any hard or computer copies thereof and including, without limitation, all confidential information of the Group Companies) and property of any kind or nature (including, without limitation, any and all personnel documents, employee or consumer lists, and personnel manuals) that belong to the Group Companies.  You also agree to return all Company access cards, credit cards and/or equipment (except your iPhone5) to the Company on or before the Separation Date.  You understand that the Company would not provide you with the monies and benefits under this Letter but for your reaffirmation of your post-employment obligations and your other representations contained in this Letter.  Your expenses related to your participation in future investigations or cases on behalf of the Company will be reimbursed by the Company.
        8.        In further consideration for the monies and other benefits provided to you in this Letter, you agree to the following:
		
	a.
	You shall not, use or disclose to any third party any Confidential Information for any reason or purpose whatsoever without the express written consent of the Company; and

		
	b.
	You agree that you shall observe in strict compliance the provisions of Section 8 of the Employment Agreement.  For the sake of clarity and for removal of doubt, without derogating from Section 8 of the Employment Agreement, you agree that (i) Executive working for, or (ii) any  involvement of the Executive with, or the provision of services or other engagement by the Executive with, a business unit or division of Metaswitch Networks, their respective affiliates, parents and subsidiaries, or any entity in such competitors’ group, which engages in a “Competitive Business” (as defined by the Employment Agreement) before the lapse of one (1) year from the Separation Date, shall be regarded as a breach of the Employment Agreement, this Letter and any agreement you executed with the Company relating to inventions, confidentiality, non-disclosure, non-solicitation and/or non-competition.

You agree that the limitations set forth in this section 8 (including Section 8 of the Employment Agreement) are reasonable given the highly competitive nature of the Company's business and are required for the Company's protection based upon numerous factors, including the knowledge and information to which you have had access during your employment with the Company.  In the event that any court of competent jurisdiction determines that the duration or the geographic scope, or both, are unreasonable and that such provision is to that extent unenforceable, you agree that the provision shall remain in full force and effect for the greatest time period and in the greatest area that would not render it unenforceable.  You acknowledge that a breach of this section 8 (including Section 8 of the Employment Agreement) will cause irreparable harm to the Company that would be difficult to quantify and for which money damages would be inadequate.  As a result, you agree that in the event of such a breach or threat of such a breach the Company shall, in addition to any other remedies available to it, have the right to injunctive relief, without the necessity of posting a bond.

You further understand and agree that your foregoing obligations under this section 8 (including all subparts and Section 8 of the Employment Agreement) and the representation set forth in section 5.f. are material terms of this Letter, and that in the event you breach any of your obligations under section 8 of this Letter (including any of your obligations under Section 8 of the Employment Agreement which is incorporated herein by reference) or the representation set forth in section 5.f., (i) the Company shall have the right, in addition to any other damages, to cease making any payments due hereunder, and (ii) you shall be obligated to return to the Company the consideration paid hereunder (without impacting the validity or enforceability of the general release contained herein); provided, however, that prior to asserting any such rights under clauses (i) and (ii) of this paragraph, the Company shall provide you with written notice identifying with reasonable specificity the facts and circumstances alleged to constitute a violation of Section 8 of the Employment Agreement or this paragraph, and providing you not less than 10 days to cure or cease and desist from such alleged violation. Notwithstanding the forgoing, nothing herein shall serve or be deemed or construed to impede, hinder or delay the Company’s right to initiate legal proceedings in law or in equity (including injunctive relief). You acknowledge and agree that the Company’s subsidiaries and other affiliates are intended third party beneficiaries of this section 8.

9.    You will have up to twenty-one (21) days from your receipt of this Letter signed by the Company to consider the meaning and effect of this Letter.  You are advised to consult with an attorney and you acknowledge that you have had the opportunity to do so.  You agree that any modifications to this Letter, material or otherwise, do not restart or affect in any manner the 21-day consideration period.  If you do not sign and return this Letter within the 21-day consideration period, the Company’s offer to provide you with the monies and/or other benefits set forth in this Letter will expire and be deemed null and void.  
     10.       You may revoke your acceptance of this Letter (including the general release contained in Exhibit A) for a period of seven (7) days following the day you execute and deliver this Letter to the Company.  Any revocation within this period must be submitted, in writing, to Kathleen Harris, Senior Vice President, Human Resources and state, “I hereby revoke my acceptance of the Letter dated April 30, 2015” The revocation must be personally delivered to Kathleen Harris, Comverse, Inc., 200 Quannapowitt Parkway, Wakefield, MA 01880, and/or postmarked within seven (7) days of execution of this Letter.  This Letter shall not become effective or enforceable until the applicable revocation period has expired.  If the last day of the revocation period is a Saturday, Sunday, or legal holiday in Massachusetts or the state in which you are based, then the revocation period shall not expire until the next following day which is not a Saturday, Sunday, or legal holiday.

11.    On the Separation Date, the unvested portion of any stock options, RSUs or any other equity securities previously awarded to you shall be immediately forfeited and canceled unless otherwise stated 

herein or in the applicable award agreement. The treatment of the vested portion of your stock options, RSUs or other equity securities, if any, upon termination of your employment shall be subject to the terms of the applicable equity incentive plan and award agreements.  Without derogating from the generality of the preceding sentence, tax withholding in the amount necessary to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to the delivery of shares in settlement of RSUs shall be made by the Company withholding shares otherwise deliverable in settlement of the RSU having a fair market value on the vesting date equal to the minimum statutory total tax that could be imposed on the transaction.
12.    This Letter (including Exhibit A) may not be modified, altered, or changed except upon express written consent of both parties wherein specific reference is made to this Letter.  This Letter (including Exhibit A) shall in all respects be interpreted, governed and enforced by the laws of the Commonwealth of Massachusetts without reference to the principles of conflicts of law thereof.   Any claims or causes of action which arise out of this Letter (including Exhibit A) shall be instituted and litigated only in, and you voluntarily submit to the jurisdiction over your person by a court of competent jurisdiction located within the Commonwealth of Massachusetts.   Both you and the Company expressly waive the right, if any, to a trial by jury with respect to any dispute arising out of or relating to this Letter (including Exhibit A).  
13.    You agree that this Agreement will inure to the benefit of the Company, its successors and assigns.  This Agreement may be assigned in whole or in part by the Company to a successor to all or substantially all of the business or assets of the Company; or to any parent, division or part of the Company; or to any subsidiary, affiliate or division or to any entity that is majority owned by the Company or its parent, subsidiaries, divisions or affiliates.  It is agreed that a waiver by either party of a breach of any provisions of this Agreement must be in writing and signed by the waiving party and shall not operate or be construed as a waiver of any subsequent breach by the same party.
14.    In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid, illegal, or other unenforceable provision had never been contained herein.  If, moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope or subject, it shall be construed by limiting it and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.
15.    This Letter represents the complete agreement between you and the Company, and fully supersedes any prior agreements or understandings between the parties including the Employment Agreement except (i) that your obligations under Section 8 (Restrictions on Activities of Executive) and Section 9 of the Employment Agreement as modified herein shall continue to apply, except that any references to Comverse Technology, Inc. or Parent in such section shall be eliminated or (ii) as specifically stated otherwise herein.  You acknowledge that you have not relied on any representations, promises, or agreements of any kind made to you in connection with your decision to sign this Letter and general release, except those set forth herein.
Comverse would like to extend its appreciation to you for your past service, and its sincere hope for success in your future endeavors.                        
Very truly yours,

Comverse, Inc.

/s/ Kathleen Harris

                             SVP, Chief Talent & Administrative Officer

EXECUTIVE ACCEPTANCE:

Having elected to execute this Letter, which includes Exhibit A “Waiver and Release Agreement” to fulfill the promises set forth herein, and to receive thereby the sums and benefits set forth in section 3 above, you freely and knowingly, and after due consideration, enter into this Letter intending to waive, settle, and release all claims you have or might have against the Group Companies through the date hereof. 

Date: April 30, 2015                /s/ Thomas Sabol
Thomas Sabol

EXHIBIT A

WAIVER AND RELEASE AGREEMENT

This Waiver and Release Agreement (hereinafter “Release”) is entered into among Thomas Sabol (hereinafter “Executive”), and Comverse, Inc. (the “Company”). 

WHEREAS, the Company and the Executive previously entered into an employment letter dated July 1, 2012, between you and the Company (the “Employment Agreement”); and

WHEREAS, Executive’s employment with the Company will be terminated effective July 1, 2015. 

NOW THEREFORE, in consideration of certain payments and benefits under his Employment Agreement and the letter agreement and general release between the parties dated April 30, 2015 to which this Release is attached (the “Letter”), Executive and the Company agree as follows:     

		
	1.
	Executive expressly waives and releases the Company and its affiliates, their respective affiliates and related entities, parent corporations and subsidiaries, and all current and former directors, administrators, supervisors, managers, agents, officers, partners, stockholders, attorneys, insurers and employees of the Company and their affiliates, related entities, parent corporations and subsidiaries, and their successors and assigns, from any and all claims, actions, and causes of action, at law or in equity, known or unknown, including those directly or indirectly relating to or connected with Executive’s employment with the Company or termination of such employment including but not limited to any claim related to additional compensation, any claim or right to receive equity securities of the Company (if any) and any and all claims under the National Labor Relations Act, as amended; Title VII of the Civil Rights Act of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Age Discrimination in Employment Act of 1967, as amended; the Older Workers Benefit Protection Act; the Immigration Reform Control Act, as amended; the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et seq.; the Occupational Safety and Health Act, as amended; the Civil Rights Act of 1866, 29 U.S.C. § 1981, et seq; the Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq.; the Americans With Disabilities Act of 1990, as amended; the Civil Rights Act of 1991; the Family and Medical Leave Act; the Equal Pay Act;  the Genetic Information Nondiscrimination Act (“GINA”); the Massachusetts Law Against Discrimination, G.L. c. 151B;  the Massachusetts Wage Payment Statute, G.L. c. 149, §§ 148, 148A, 148B, 149, 150,150A-150C, 151, 152, 152A, et seq.; the Massachusetts Wage and Hour laws, G.L. c. 151§1A et seq.; the Massachusetts Privacy Statute, G.L. c. 214, § 1B; the Massachusetts Sexual Harassment Statute, G.L. c. 214 § 1C; the Massachusetts Civil Rights Act, G.L. c. 12, § 11H; the Massachusetts Equal Rights Act, G.L. c. 93, § 102;, as such Acts have been amended, and all other forms of employment claims whether under federal, state or local statute or ordinance, wrongful termination, retaliatory discharge, breach of express implied, or oral contact, interference with contractual relations, defamation, intentional infliction of emotional distress and any other tort or contact claim under common law of any state or for attorneys’ fees, based on any act, transaction, circumstance or event arising up to and including the date of Executive’s execution of this Release; provided, however, nothing herein shall limit or impede Executive’s right to file or pursue an administrative charge with, or participate in, any investigation before the Equal Employment Opportunity Commission (“EEOC”), or any similar local, state or federal agency.  Executive agrees, however, that if Executive or 

anyone acting on Executive’s behalf, brings any action concerning or related to any cause of action or liability released in this Release or the Letter, Executive waives any right to, and will not accept any payments, monies, damages, or other relief, awarded in connection therewith.  Notwithstanding the foregoing, nothing in this paragraph is intended to act as a release of any claim you may have for workers’ compensation benefits, unemployment insurance benefits, any right to indemnification or directors’ and officers’ liability insurance coverage to which you are otherwise entitled, any right you may have under the Letter, as well as any other claims that cannot lawfully be released. 

		
	2.
	Executive acknowledges: (a) that Executive is advised in writing hereby to consult with any attorney before signing this Release, and (b) that Executive has had at least twenty-one (21) days after receipt to consider whether to accept or reject this Release.  Executive understands that Executive may sign this Release prior to the end of such twenty-one (21) day period, but is not required to do so.  In addition, Executive has seven (7) days after Executive signs this Release to revoke it as provided for in the Letter.  If Executive revokes this Release as provided herein, it shall be null and void and Executive shall not be entitled to the monies and/or benefits provided for in the Letter.  

		
	3.
	Executive and the Company agree that neither this Release nor the performance hereunder constitutes an admission by the Company of any violation of any federal, state or local law, regulation, or common law, or any breach of any contract or any other wrongdoing of any type. 

EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS FULL READ AND FULLY UNDERSTANDS THIS RELEASE; AND THAT EXECUTIVE ENTERED INTO IT FREELY AND VOLUNTARILY AND WITHOUT COERCION OR PROMISES NOT CONTAINED IN THIS RELEASE.

EXECUTIVE

/s/ Thomas Sabol
Thomas Sabol

Comverse, Inc.

		
	By: 
	/s/ Kathleen Harris

Name: Kathleen Harris
Title:  SVP, Chief Talent & Administrative Officer

EXHIBIT B

	
			
	Security
	Date of Grant
	No. of Securities to Vest on Separation Date

	Stock Option
	November 1, 2012
	22,661

	Stock Option
	June 21, 2013
	13,159

	Stock Option
	June 25, 2014
	15,400

	 
	 
	 

	Restricted Stock Unit
	November 1, 2013
	3,776

	Restricted Stock Unit
	June 21, 2013
	4,541

	Restricted Stock Unit
	June 25, 2014
	5,330KWK 8-K 2015.06.15 EX10.1

Exhibit 10.1

SECOND WAIVER AND FORBEARANCE AGREEMENT

This SECOND WAIVER AND FORBEARANCE AGREEMENT (this “Agreement”), dated as of June 15, 2015, to and under the Canadian Credit Agreement referenced below is among QUICKSILVER RESOURCES CANADA INC., (the “Canadian Borrower”), JPMORGAN CHASE BANK, N.A., as global administrative agent (in such capacity, the “Global Administrative Agent”), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian administrative agent (in such capacity, the “Canadian Administrative Agent” and, together with the Global Administrative Agent, the “Administrative Agents”), and the Combined Lenders (as defined below) party hereto.

R E C I T A L S:
A.    Quicksilver Resources Inc. (the “U.S. Borrower”), the Global Administrative Agent and the various financial institutions party thereto as lenders (the “U.S. Lenders”), agents or issuing banks entered into that certain Amended and Restated Credit Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “U.S. Credit Agreement”).
B.    The U.S. Borrower, the Canadian Borrower, the Canadian Administrative Agent, the Global Administrative Agent, and the various financial institutions party thereto as lenders (the “Canadian Lenders” and, together with the U.S. Lenders, the “Combined Lenders”), agents or issuing banks entered into that certain Amended and Restated Credit Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “Canadian Credit Agreement”).
C.     The Administrative Agents entered into that certain Intercreditor Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “Intercreditor Agreement”).
D.    Pursuant to the Canadian Credit Agreement, the Canadian Lenders have made certain loans and other extensions of credit to the Canadian Borrower.
E.     The U.S. Borrower and the Guarantors (as defined in the U.S. Credit Agreement) that are Domestic Subsidiaries (as defined in the U.S. Credit Agreement) (collectively, the “Debtors”) filed on March 17, 2015 voluntary petitions initiating their respective cases  under Chapter 11 of the Bankruptcy Code (collectively, the “Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).

F.    The Bankruptcy Court entered a final order (the “Cash Collateral  Order”) on May 1, 2015 which, among other things, authorized the Debtors to use cash collateral and other collateral and granted adequate protection to the First Lien Parties and the Second Lien Parties (each as defined in the Cash Collateral Order), in each case, in accordance with and as more particularly set forth in the Cash Collateral Order.
G.    The Canadian Borrower, 0942065 B.C. Ltd. and 0942069 B.C. Ltd. (the “Non-Filer Parties”) are not Debtors in the Cases or in bankruptcy proceedings in Canada.

H.    As a result of the commencement of the Cases, (a) the obligations under the Canadian Credit Agreement were automatically accelerated and the Commitments thereunder terminated and (b) the Administrative Agents and the Canadian Lenders were entitled to exercise all of their rights and remedies under the Canadian Credit Agreement, the other Loan Documents and applicable Governmental 

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Requirements (the exercise of any such rights and remedies, collectively, “Canadian Debt Enforcement Actions”).

I.    The U.S. Borrower, the Canadian Borrower, the Guarantors (as defined in the Existing Forbearance Agreement), the Administrative Agents, the issuing banks party thereto and the Combined Lenders party thereto entered into that certain Waiver and Forbearance Agreement dated as of March 16, 2015 (the “Existing Forbearance Agreement”) pursuant to which, among other things, the Administrative Agents and the Majority Lenders agreed to forbear from taking any Canadian Debt Enforcement Actions against the Non-Filer Parties prior to the Forbearance Termination Date (as defined in the Existing Forbearance Agreement), which if such termination date does not occur prior to June 16, 2015, will occur on June 16, 2015.
J.    The Canadian Borrower has requested that the Administrative Agents and the Majority Lenders (a) agree to continue to forbear from and after June 16, 2015 from taking Canadian Debt Enforcement Actions against the Non-Filer Parties and (b) waive the requirement of Section 8.01(c) of the Canadian Credit Agreement, which requires a Financial Officer of the U.S. Borrower to deliver a compliance certificate when financial statements are delivered (the “Compliance Certificate Requirement”).
K.    The Administrative Agents and the Majority Lenders have agreed to such requests, subject to the terms and provisions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Definitions.  Each capitalized term used herein but not otherwise defined herein has the meaning given to such term in the Canadian Credit Agreement.  Unless otherwise indicated, all section references in this Agreement refer to the applicable section of the Canadian Credit Agreement.
Section 2.    Acknowledgements; Release.
2.1    Amount of Obligations.  The Canadian Borrower acknowledges and agrees that (a) as of the close of business on June 5, 2015, the Secured Indebtedness includes, without limitation, not less than $82.7 million of Loans and not less than $2.1 million of face amount of Letters of Credit and (b) it is truly and justly indebted to the Secured Parties and the Administrative Agents for the Secured Indebtedness without defense, counterclaim or offset of any kind, and it ratifies and reaffirms the validity, enforceability and binding nature of such Secured Indebtedness.
2.2    Event of Default.  The Canadian Borrower acknowledges and agrees that: 
(a)    (i)(A) the commencement of the Cases by the Debtors resulted in an Event of Default pursuant to Section 10.01(i) and caused the Secured Indebtedness arising under the Loan Documents to become immediately due and payable and (B) after the Effective Date, additional Events of Default may result under the Canadian Credit Agreement related to, arising out of or in connection with (1) the Cases or (2) events which customarily occur leading up to or subsequent to the filing of the Cases under Chapter 11 of the Bankruptcy Code, pursuant to Sections 10.01(d) (solely with respect to Section 9.01), 10.01(e) (as a result of a breach of Section 8.04 (Payment of Obligations)) and 10.01(l) (by virtue of the automatic stay in the Cases), (collectively under clause (B), the “Second Forbearance Potential Events of Default”) and (ii) the Canadian Borrower represents and warrants to the Administrative Agents and the Combined Lenders that, as of the Effective Date, neither a Default nor an Event of Default has occurred and continues to exist under the Loan Documents (other than pursuant to (A) Section 10.01(c) as a result of the making of any 

3

representation and warranty in connection with the renewal of any evergreen Letters of Credit outstanding as of the date hereof), (B) Section 10.01(e) as a result of a breach of Section 8.04 (Payment of Obligations), (C) Section 10.01(f), (D) Section 10.01(g), (E) Section 10.01(i) (as it relates to the events further described in clause 2.2(a)(i)(A)), (F) Section 10.01(j) and (G) Section 10.01(d) (solely with respect to Section 8.02 (Notices of Material Events) as it relates to any of the events described in clauses 2.2(a)(ii)(A)-(F))) (collectively under clauses 2.2(a)(ii)(A)-(G), the “Specified Existing Defaults” and, together with the Second Forbearance Potential Events of Default, the “Second Forbearance Events of Default”), 
(b)    from and after June 16, 2015, absent the agreement of the Administrative Agents and the Majority Lenders to forbear from taking Canadian Debt Enforcement Actions as provided in this Agreement, the occurrence and continuance of the Second Forbearance Events of Default entitle the Administrative Agents and the Majority Lenders to take Canadian Debt Enforcement Actions at any time, subject to the terms of the Loan Documents and applicable Governmental Requirements, and
(c)    from and after the automatic acceleration on March 17, 2015 of the obligations under the Canadian Credit Agreement, interest has and continues to accrue under Section 3.02(e) of the Canadian Credit Agreement and has and shall continue to be payable in accordance with Section 5.1 of the Existing Forbearance Agreement at the same rate as currently in effect, which, for the avoidance of doubt, shall be calculated under Section 3.02(e) based on the highest level of Applicable Margin for Canadian Prime and U.S. Prime Borrowings.
2.3    Release.  Without in any way limiting the release contained in the Existing Forbearance Agreement, the Canadian Borrower, in consideration of the Administrative Agents’ and the Combined Lenders’ execution and delivery of this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, unconditionally, freely, voluntarily and, after consultation with counsel and becoming fully and adequately informed as to the relevant facts, circumstances and consequences, releases, waives and forever discharges (and further agrees not to allege, claim or pursue) any and all claims, rights, causes of action, counterclaims or defenses of any kind whatsoever, in contract, in tort, in law or in equity, whether known or unknown, direct or derivative, which the Canadian Borrower or any predecessor, successor or assign might otherwise have or may have against any Administrative Agent, Combined Lender, Issuing Bank, their present or former Subsidiaries and Affiliates or any of the foregoing’s officers, directors, employees, attorneys or other representatives or agents on account of any conduct, condition, act, omission, event, contract, liability, obligation, demand, covenant, promise, indebtedness, claim, right, cause of action, suit, damage, defense, circumstance or matter of any kind whatsoever which existed, arose or occurred at any time prior to the Effective Date relating to the Loan Documents, this Agreement and/or the transactions contemplated thereby or hereby.  The foregoing release shall survive the termination of this Agreement or the Second Forbearance Period (as defined below). 
Section 3.    Forbearance.
3.1    Applicable Forbearance Period.  Subject to the terms and conditions of this Agreement, the Administrative Agents and the Majority Lenders hereby agree to continue to forbear from taking any Canadian Debt Enforcement Action against any of the Non-Filer Parties as a result of the occurrence and continuance of any Second Forbearance Events of Default during the period from and including the Effective Date until the earliest to occur of (a) September 16, 2015, (b) the commencement against any Non-Filer Party of any litigation (including, without limitation, any foreclosure proceeding) in which the amounts involved, individually or in the aggregate, equal or exceed $5,000,000 that could reasonably be expected to have, during the Second Forbearance Period, a material adverse effect on (i) the validity or enforceability of the Loan Documents, (ii) the rights and remedies of, or benefits available to, the Canadian Administrative Agent 

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and the Secured Parties under the Loan Documents and Governmental Requirements (including with respect to the first Lien granted pursuant to the Loan Documents to secure the Secured Indebtedness) or (iii) the business, operations, Property or financial condition of the Non-Filer Parties, taken as a whole, (c) other than pursuant to the Loan Documents, the acceleration of, or any other exercise of any rights or remedies in respect of, any Debt of any Non-Filer Party the outstanding principal amount of which exceeds, individually or in the aggregate, for such Non-Filer Party, $5,000,000; provided that a drawing under any Letter of Credit shall not constitute an acceleration or an exercise of rights or remedies, (d) any Non-Filer Party taking any action to challenge (including, without limitation, to assert in writing any challenge to) the validity or enforceability of this Agreement or any other Loan Document or any provision hereof or thereof, (e) the commencement by any Non-Filer Party of proceedings under bankruptcy, insolvency, receivership, restructuring or similar law now or hereafter in effect, including, without limitation, under the Bankruptcy and Insolvency Act (Canada), the Companies Creditors Arrangement Act (Canada), the Winding-up and Restructuring Act (Canada) or the Business Corporations Act (Alberta), (f) any failure by the Canadian Borrower to pay interest on the Loans as described in Section 2.2(c) hereof, (g) the occurrence of any Termination Event (as defined in the Cash Collateral Order), (h) any failure of the U.S. Borrower to pay interest on the U.S. Loans in accordance with the terms of the Cash Collateral Order and Section 5.2 of the Existing Forbearance Agreement and (i) a breach of the Canadian Borrower’s obligations pursuant to Section 8.13(e) to cooperate in the provision of a grant of fixed Liens on the property of the Canadian Borrower (such earliest date, the “Second Forbearance Termination Date”, and the period from and including the Effective Date until the Second Forbearance Termination Date, the “Second Forbearance Period”).
3.2    Limitation on and Inapplicability of Forbearance.  Each Non-Filer Party acknowledges and agrees that, notwithstanding the agreement of the Administrative Agents and the Majority Lenders to forbear from taking Canadian Debt Enforcement Actions during the Second Forbearance Period, (a) nothing contained in this Agreement shall be construed to limit or affect the right of the Administrative Agents and the Combined Lenders to bring or maintain during the Second Forbearance Period any action to enforce or interpret any term or provision of this Agreement, or to file or record instruments of public record (or take other action) to perfect or further protect the liens and security interests granted by the Non-Filer Parties to the Administrative Agents and the Lenders and (b) in connection with the termination, unwind or cancellation of any Swap Agreement between the Canadian Borrower and a Secured Swap Provider, the Canadian Borrower acknowledges and agrees that nothing set forth in this Agreement shall affect (i) the rights of such Secured Swap Provider or its Affiliates to exercise any right of setoff contemplated by the Loan Documents, including Section 12.08 of the Canadian Credit Agreement and (ii) the operation of any provisions of the Loan Documents and Intercreditor Agreement concerning any such rights of setoff.
3.3    Enforcement Actions After Applicable Forbearance Period.  Each Non-Filer Party acknowledges and agrees that, on the Second Forbearance Termination Date, the agreement of the Majority Lenders and the Administrative Agents to forbear from taking any Canadian Debt Enforcement Action shall cease and be of no further force or effect, and the Administrative Agents and the Majority Lenders shall be entitled to immediately take Canadian Debt Enforcement Actions against such Non-Filer Party, subject to the terms of the Canadian Credit Agreement, the other Loan Documents and applicable Governmental Requirements, all without further notice or demand, in respect of the Second Forbearance Events of Default or any other Event of Default not waived or then existing.
Section 4.    Waiver.  The Administrative Agents and the Majority Lenders hereby agree to waive the Compliance Certificate Requirement (without prejudice to the terms of Section 8.01(h)). The waiver contained in this Section 4 hereof, shall not be a waiver by the Administrative Agents, the Combined Lenders or the Issuing Bank of any Defaults or Events of Default which may exist or which may occur in the future under the Canadian Credit Agreement or the other Loan Documents (collectively, “Other Violations”).  

5

Similarly, nothing contained in this Agreement shall directly or indirectly in any way whatsoever:  (1) amend or alter any provision of the Canadian Credit Agreement, the other Loan Documents or any other contract or instrument except as expressly set forth in this Agreement or (2) constitute any course of dealing or other basis for altering any obligation of the Canadian Borrower or any right, privilege or remedy of the Administrative Agents, the Combined Lenders or the Issuing Bank under the Canadian Credit Agreement, the other Loan Documents or any other contract or instrument.  Without prejudice to the forbearance provisions set forth herein, nothing in this Agreement shall be construed to be a consent or waiver by the Administrative Agents, the Combined Lenders or the Issuing Bank under the Canadian Credit Agreement to any Other Violations.
Section 5.    Conditions Precedent.  This Agreement shall not become effective until the date on which each of the following conditions is satisfied (the “Effective Date”):
(a)    Execution.  The Global Administrative Agent shall have received from the Canadian Borrower, the Majority Lenders, the Global Administrative Agent and the Canadian Administrative Agent counterparts of this Agreement signed on behalf of each such Person.
(b)    Fees and Expenses.  The Administrative Agents shall have received all amounts due and payable in connection with this Agreement and any other Loan Documents on or prior to the Effective Date, including all invoiced and all documented out-of-pocket expenses required to be reimbursed or paid by the Canadian Borrower under the Canadian Credit Agreement (including the fees and expenses of legal counsel and any financial advisor).
Section 6.    Miscellaneous
6.1    Confirmation.  All of the terms and provisions of the Canadian Credit Agreement, but with effect given to the waiver in this Agreement, are, and shall remain, in full force and effect following the Effective Date.
6.2    Ratification and Affirmation; Representations and Warranties.  The Canadian Borrower hereby (a) acknowledges the terms of this Agreement; (b) ratifies and affirms (i) its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect and (ii) that the Liens created by the Loan Documents to which it is a party are valid, continuing and enforceable and secure the Secured Indebtedness in accordance with the terms thereof; and (c) represents and warrants to the Lenders that as of the date hereof, except with respect to Section 7.04(b) (with respect to information disclosed by the Canadian Borrower to the Agent prior to the Effective Date) and Section 7.18, the representations and warranties contained in the Loan Documents to which it is a party are true and correct in all material respects on and as of the Effective Date, except that to the extent any such representations and warranties are (x) expressly limited to an earlier date, in which case, on the Effective Date such representations and warranties shall continue to be true and correct as of such specified earlier date and (y) qualified by materiality, such representations and warranties (as so qualified) shall continue to be true and correct in all respects.  This Agreement is a Loan Document.
6.3    Counterparts.  This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart by facsimile or electronic mail shall be effective as delivery of a manually executed counterpart hereof.

6

6.4    Governing Law, Jurisdiction, Etc.  Sections 12.09 and 12.18 of the Canadian Credit Agreement shall be incorporated herein mutatis mutandis.
6.5    Entire Agreement.  This Agreement, the Canadian Credit Agreement and the other Loan Documents represent the entire agreement of the Canadian Borrower, the Administrative Agents, the Issuing Bank and the Combined Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agents, the Issuing Bank or any Combined Lender relative to the subject matter not expressly set forth or referred to herein or in the Canadian Credit Agreement and the other Loan Documents.

        

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

QUICKSILVER RESOURCES CANADA INC., an Alberta, Canada corporation
		
	By:
	/s/ Vanessa Gomez LaGatta     
Name:    Vanessa Gomez LaGatta 
Title:     Senior Vice President

 Chief Financial Officer and Treasurer

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

BANK OF AMERICA, N.A., as a Lender under the U.S. Credit Agreement
By:    /s/ Tyler D. Levings         
Name:    Tyler D. Levings 
Title:    Director

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

CANADIAN IMPERIAL BANK OF COMMERCE, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ E. Lindsay Gordon             
Name:    E. Lindsay Gordon 
Title:    Canadian Imperial Bank of Commerce

   Executive Director
    

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ E. Lindsay Gordon         
Name:    E. Lindsay Gordon     
Title:    Canadian Imperial Bank of Commerce

   Executive Director

		
	By:
	/s/ Charles D. Mulkeen         
Name:    Charles D. Mulkeen 
Title:    Executive Director

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

CITIBANK, N.A., as a Lender under the U.S. Credit Agreement
By:    /s/ Brian S. Broyles         
Name:    Brian S. Broyles 
Title:    Attorney-in-Fact

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

CITIBANK, N.A., CANADIAN BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Brian S. Broyles         
Name:    Brian S. Broyles     
Title:    Attorney-in-Fact

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

CITIGROUP FINANCIAL PRODUCTS INC., as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Joelle Gavlick     
Name:    Joelle Gavlick 
Title:    Authorized Signatory

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

CITIGROUP FINANCIAL PRODUCTS INC., as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Joelle Gavlick     
Name:    Joelle Gavlick 
Title:    Authorized Signatory

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

		
	By:
	/s/ Ron Spitzer     
Name:    Ron Spitzer 
Title:    Managing Director

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

		
	By:
	/s/ Bryan J. Matthews         
Name:    Bryan J. Matthews 
Title:    Authorized Signatory

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Benjamin Souh         
Name:    Benjamin Souh 
Title:    Vice President

		
	By:
	/s/ Keith C. Braun         
Name:    Keith C. Braun 
Title:    Managing Director

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

DEUTSCHE BANK AG CANADA BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Paul Uffelman     
Name:    Paul Uffelman 
Title:    Vice President

		
	By:
	/s/ Leigh Knowles     
Name:    Leigh Knowles     
Title:    Director

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

UBS AG, STAMFORD BRANCH, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Darlene Arias         
Name:    Darlene Arias 
Title:    Director

		
	By:
	/s/ Craig Pearson         
Name:    Craig Pearson 
Title:    Associate Director

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

        

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

		
	By:
	/s/ Craig Pearson         
Name:    Craig Pearson 
Title:    Associate Director

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

WELLS FARGO BANK, N.A., as a Lender under the U.S. Credit Agreement
By:    /s/ Trenton J. Brendon         
Name:    Trenton J. Brendon 
Title:    Vice President

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

WELLS FARGO FINANCIAL CORPORATION CANADA, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Jeannette Cavaliere         
Name:    Jeannette Cavaliere     
Title:    Vice President

SIGNATURE PAGE TO SECOND WAIVER AND FORBEARANCE AGREEMENT

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