Document:

Third Amendment to Combined Credit Agreements

 Exhibit 10.1 
  
 THIRD AMENDMENT TO COMBINED CREDIT AGREEMENTS 
  
 THIS THIRD AMENDMENT TO COMBINED CREDIT AGREEMENTS, dated as of June 17, 2005 (this “Amendment”), among
QUICKSILVER RESOURCES INC., a Delaware corporation (the “U.S. Borrower”), MGV ENERGY INC., an Alberta, Canada corporation (the “Canadian Borrower”), each of the lenders that is a signatory to, or which becomes a
signatory to, the U.S. Credit Agreement (together with its successors and assigns, the “U.S. Lenders”), each of the lenders that is a signatory to, or which becomes a signatory to, the Canadian Credit Agreement (together with its
successors and assigns, the “Canadian Lenders”, and together with the U.S. Lenders, the “Combined Lenders”), JPMORGAN CHASE BANK, N.A. (successor by merger to Bank One, N.A.), as Global Administrative Agent (in such
capacity, together with its successors in such capacity, the “Global Administrative Agent”), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH (successor by merger to Bank One, N.A., Canada Branch), as Canadian Administrative Agent (in such
capacity, together with its successors in such capacity, the “Canadian Administrative Agent”), BNP PARIBAS and BANK OF AMERICA, N.A., as Co-Global Syndication Agents, and FORTIS CAPITAL CORP. and THE BANK OF NOVA SCOTIA, as
Co-Global Documentation Agents. 
  
 W I T
N E S S E T H: 
  
 1. The U.S. Borrower, the Global Administrative Agent, the Co-Global Syndication Agents, the Co-Global Documentation Agents, and the U.S. Lenders are parties to that certain Credit Agreement dated as of July 28, 2004, as amended by (i) that
certain First Amendment to Combined Credit Agreements dated as of September 21, 2004 and (ii) that certain Second Amendment to Combined Credit Agreements dated as of January 11, 2005 (as amended, the “U.S. Credit Agreement”),
pursuant to which the U.S. Lenders agreed to make loans to and extensions of credit on behalf of the U.S. Borrower. 
  
 2. The Canadian Borrower, the Global Administrative Agent, the Canadian Administrative Agent, the Co-Global Syndication Agents, the Co-Global
Documentation Agents, and the Canadian Lenders are parties to that certain Credit Agreement dated as of July 28, 2004, as amended by (i) that certain First Amendment to Combined Credit Agreements dated as of September 21, 2004 and (ii) that certain
Second Amendment to Combined Credit Agreements dated as of January 11, 2005 (as amended, the “Canadian Credit Agreement”, and together with the U.S. Credit Agreement, the “Combined Credit Agreements”), pursuant to
which the Canadian Lenders agreed to make loans to and extensions of credit on behalf of the Canadian Borrower. 
  
 3. The parties to the Combined Credit Agreements intend to amend the Combined Credit Agreements as follows: 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereto agree as follows: 

 I. Amendments to U.S. Credit Agreement. 
  
 A. The definition of “Permitted Investments” contained in
Section 1.1 of the U.S. Credit Agreement hereby is amended by (i) revising subsection (k) thereof in its entirety to read as follows: 
  
 “ (k) all Investments by any Loan Party in any one or more direct or indirect Subsidiaries of the Borrower (other than a Material Subsidiary) that
own, lease, hold and/or are party to (i) any Oil and Gas Properties, (ii) any gas processing or gas gathering systems, (iii) any farm-out, farm-in, joint operating, joint venture or area of mutual interest agreements and/or (iv) any gathering
systems, pipelines or other similar arrangements, in each case located within or related to the geographic boundaries of the United States of America or Canada so long as the Equity Interests of any such Subsidiary owned by such Loan Party have been
pledged to the Global Administrative Agent pursuant to a Pledge Agreement in accordance with, and as and to the extent required by, Section 5.18 and 5.19;”, 
  
 (ii) deleting the word “and” at the end of subsection (o) thereof; (iii) by replacing the period at the end of
subsection (p) thereof with “; and”; and (iv) by inserting the following subsection (q) following subsection (p) thereof: 
  
 “ (q) all Investments by any Loan Party in Persons (other than a Material Subsidiary or a direct or indirect Subsidiary of the Borrower) that own,
lease, hold and/or are party to (i) any Oil and Gas Properties, (ii) any gas processing or gas gathering systems, (iii) any farm-out, farm-in, joint operating, joint venture or area of mutual interest agreements and/or (iv) any gathering systems,
pipelines or other similar arrangements, in each case located within or related to the geographic boundaries of the United States of America or Canada so long as the Equity Interests of such Person owned by such Loan Party have been pledged to the
Global Administrative Agent pursuant to a Pledge Agreement in accordance with, and as and to the extent required by, Section 5.18 and 5.19, provided, except to the extent any such Investments constitute “Permitted
Investments” under any other subsection of this definition, (A) the Loan Parties do not make more than U.S.$30,000,000 in the aggregate of any such Investments during any Fiscal Year and (B) the total amount of any such Investments at any one
time does not exceed U.S.$80,000,000 in the aggregate.” 
  
 B. The definition of “Pledging Subsidiary” contained in Section 1.1 of the U.S. Credit Agreement hereby is amended by deleting the reference to “issued and outstanding Equity Interests of a Material
Subsidiary” and replacing such reference with “issued and outstanding Equity Interests of a Material Subsidiary or other Person”. 
  
 C. The definition of “Subordinate Note Documents” contained in Section 1.1 of the U.S. Credit Agreement hereby is amended in its
entirety to read as follows: 
  
 “ “Subordinate Note
Documents” means (i) the Subordinated Note Purchase Agreement, the Subordinate Notes, and all promissory notes, security agreements, 
  

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 deeds of trust, assignments, guarantees and other documents, instruments and agreements executed and
delivered pursuant to the Subordinated Note Purchase Agreement evidencing, securing, guaranteeing or otherwise pertaining to the Existing Subordinate Debt and the other obligations arising under the Subordinated Note Purchase Agreement and (ii) the
Convertible Note Indenture, and all promissory notes, guarantees and other documents, instruments and agreements executed and delivered pursuant to the Convertible Note Indenture evidencing, guaranteeing or otherwise pertaining to Subordinated Debt
(other than the Existing Subordinate Debt), as the foregoing may be amended, restated, renewed, extended, supplemented, increased, replaced or otherwise modified from time to time to the extent permitted hereunder and under such Subordinate Note
Documents. 
  
 D. Section 1.1 of the U.S. Credit Agreement
hereby is amended by inserting the definitions of “Convertible Note Indenture”, “Foreign Entity”, “Senior Notes” and “Senior Notes Documents” in appropriate alphabetical order: 
  
 “ “Convertible Note Indenture” means that certain
Indenture dated as of November 1, 2004, between the Borrower and JPMorgan Chase Bank, as the same may be modified, amended, renewed, supplemented, extended, restated, increased or replaced from time to time to the extent permitted hereunder and
under the Convertible Note Indenture. 
  
 “Foreign Entity” means any Person (other than a natural person and a Foreign Subsidiary) that is organized under the laws of a jurisdiction other than the United States of America or any State thereof or the District of
Columbia. 
  
 “Senior Notes”
means any unsecured Indebtedness of Borrower, which Indebtedness may be convertible into the capital stock of the Borrower, and any Guarantees thereof by Subsidiaries, incurred or assumed after the date of this Agreement provided, that all
such Indebtedness (i) has a maturity date at least six (6) months after the Maturity Date, (ii) is not permitted to be prepaid (other than by the conversion of any such Indebtedness into the capital stock of the Borrower) without the written consent
of the Global Administrative Agent and the Required Lenders, (iii) has a coupon not in excess of nine percent (9%); (iv) contains covenants not materially more onerous to Borrower and its Subsidiaries than those contained in the Combined Loan
Documents and (v) contains other terms and conditions (including amount, interest, amortization, covenants and events of default) as are satisfactory to the Global Administrative Agent and the Required Lenders. 
  
 “Senior Notes Documents” means the
indentures or other agreements under which any Senior Notes are issued and all other instruments, agreements and other documents evidencing or governing such Senior Notes or providing for any Guarantee or other right in respect thereof.”

  
 E. Subsection (h) of Section 2.7 of the U.S.
Credit Agreement hereby is amended by deleting the reference to “(h) Issuance of Other Subordinated Debt. In the event of the issuance of any Subordinated Debt permitted pursuant to Section 7.1(o)” and replacing such
reference 
  

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 with “(h) Issuance of Other Indebtedness. In the event of the issuance of (i) any Subordinated Debt permitted
pursuant to Section 7.1(b) in excess of an aggregate amount of $70,000,000 for all Subordinated Debt issued pursuant to Section 7.1(b) or (ii) any Indebtedness permitted pursuant to Sections 7.1(o) and 7.1(p)”.

  
 F. Section 3.22(a) of the U.S. Credit Agreement hereby
is amended in its entirety to read as follows: 
  
 “ (a)
[Intentionally omitted].” 
  
 G. Section 5.1 of the
U.S. Credit Agreement hereby is amended by (i) revising Subsection 5.1(m) by deleting the reference to “any Loan Party” and replacing such reference with “any Loan Party or Person which has any of its Equity Interests pledged
pursuant to a Pledge Agreement” and (ii) inserting the following Subsection 5.1(n) after Subsection 5.1(m) thereof: 
  
 “ (n) Promptly, but in no event later than five (5) Business Days following an Authorized Officer of any Loan Party becoming aware of same, notice to
the Global Administrative Agent of the issuance of any Indebtedness permitted pursuant to Sections 7.1(b), 7.1(o) or 7.1(p).” 
  
 H. Article V of the U.S. Credit Agreement hereby is amended inserting the following Section 5.19 after Section 5.18 thereof:

  
 “ Section 5.19 Pledges of Equity Interests in
non-Loan Parties. Prior to any Investment being considered a Permitted Investment pursuant to subsections (k) and (q) of the definition of “Permitted Investment”, the Borrower or relevant Subsidiary (which shall not be a
Foreign Subsidiary), as applicable, will pledge all Equity Interests in the Person into which the Investment was or will be made which are owned by the Borrower or such Subsidiary (except that, if such Person is a Foreign Entity, the Equity
Interests of such Person to be pledged pursuant to such Pledge Agreement shall be limited to 65% of the total combined voting power of all classes of voting Equity Interests of such Person and 100% of all non-voting Equity Interests of such Person
owned by the Borrower or such Subsidiary) and shall execute and deliver to the Global Administrative Agent a Pledge Agreement together with (i) all certificates (or other evidence acceptable to the Global Administrative Agent) evidencing the issued
and outstanding Equity Interests owned by the Borrower or such Subsidiary (subject to the 65% and 100% limitations described above with respect to a Foreign Entity) of any such Person of every class owned by the Borrower or such Subsidiary (as
applicable) which shall be duly endorsed or accompanied by stock powers executed in blank (as applicable), and (ii) such UCC-1 financing statements as the Global Administrative Agent shall deem reasonably necessary or appropriate to grant, evidence
and perfect the Liens required hereunder in the issued and outstanding Equity Interests of each such Person.” 
  

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 I. Section 7.1 of the U.S. Credit Agreement hereby is amended by (i) revising the current
Subsection 7.1(b) in its entirety to read as follows: 
  
 “ (b) (i) secured Subordinated Debt (including, without limitation, the Existing Subordinated Debt), and (ii) Guarantees by any Subsidiary of the Subordinated Debt (including the Existing Subordinate Debt); provided,
however, that all such Subordinated Debt (inclusive of the Existing Subordinated Debt) does not exceed an aggregate principal amount of U.S.$100,000,000 and shall be in compliance with the requirements of Section 7.14; and
provided, further, that all Indebtedness permitted pursuant to Sections 7.1(b), 7.1(o) and 7.1(p) does not exceed an aggregate principal amount of U.S.$350,000,000;”; 
  
 (ii) deleting the reference to “and” at the end of Subsection 7.1(n), (iii)
revising the current Subsection 7.1(o) in its entirety to read as follows: 
  
 “ (o) other unsecured Subordinated Debt of the Borrower, which Subordinated Debt may be convertible into capital stock of the Borrower, and Guarantees by Subsidiaries of such Subordinated Debt; provided,
however, that all such Subordinated Debt (i) does not exceed an aggregate principal amount of U.S.$350,000,000, (ii) is subordinated in right of security and payment to the payment in full in cash and cash equivalents of all Combined
Obligations of the Borrower or the relevant Subsidiary, as the case may be, on terms and conditions satisfactory to the Global Administrative Agent and the Required Lenders, (iii) has a maturity date at least six (6) months after the Maturity Date,
(iv) is not permitted to be prepaid (other than the conversion of such Subordinated Debt to capital stock of the Borrower) without the written consent of the Global Administrative Agent and the Required Lenders, (v) has a coupon not in excess of
nine percent (9%); (vi) contains covenants not materially more onerous to Borrower and its Subsidiaries than those contained in the Combined Loan Documents and (vii) contains other terms and conditions (including amount, interest, amortization,
covenants and events of default) as are satisfactory to the Global Administrative Agent and the Required Lenders, and provided, further, that all Indebtedness permitted pursuant to Sections 7.1(b), 7.1(o) and
7.1(p) does not exceed an aggregate principal amount of U.S.$350,000,000; and”; 
  
 (iv) inserting the following Subsection 7.1(p) after Subsection 7.1(o): 
  
 “ (p) unsecured Senior Notes of the Borrower and Guarantees by Subsidiaries of such Senior Notes; provided, however, that the aggregate
principal amount of such Senior Notes does not exceed U.S.$200,000,000, and provided, further, that all Indebtedness permitted pursuant to Sections 7.1(b), 7.1(o) and 7.1(p) does not exceed an aggregate principal
amount of U.S.$350,000,000;”; 
  
 and (v) revising the proviso after the
current Subsection 7.1(o) to read as follows: 
  
 “provided, that, the Borrower may not incur any new Indebtedness (other than (i) the renewal, extension, refinancing or replacement of the Existing Subordinated Debt and (ii) Guarantees by any Subsidiaries thereof to the extent
the same is incurred in accordance with Section 7.14) described in clauses (b), (g), (j), (k), (o) and (p) above at any time that a Default, Event of Default, Global Borrowing Base Deficiency or U.S. Borrowing Base Deficiency has occurred and
is continuing.” 
  

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 J. Section 7.6 of the U.S. Credit Agreement hereby is amended in its entirety to read as follows:

  
 “ SECTION 7.6 Amendments to Organizational Documents;
Other Material Agreements. The Borrower will not, nor will the Borrower permit any other Loan Party to, enter into or permit any modification or amendment of, or waive any material right or obligations of any Person under, (a) its Organic
Documents (other than amendments, modifications and waivers which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect), (b) the Subordinate Note Documents, (c) the Senior Notes Documents, and (d) the
Commodity Price Risk Policy (other than amendments, modifications and waivers which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect); provided, that the Borrower may enter into or obtain
amendments, modifications or waivers to or under the Subordinate Note Documents or the Senior Notes Documents which do not provide for or have any of the following effects: (i) cause (A) the outstanding principal balance of all Subordinated Debt
permitted pursuant to Section 7.1(b) (including, for sake of clarity, the Existing Subordinated Debt) to exceed U.S.$100,000,000 at any time and (Y) the outstanding principal balance of all Indebtedness permitted pursuant to Sections
7.1(b) (including, for sake of clarity, the Existing Subordinated Debt), 7.1(o) and 7.1(p) to exceed U.S.$350,000,000 at any time (in each case, as reduced by any prepayments or redemptions to the extent permitted by Section
7.14 hereof or any other principal payments hereafter made with the express written consent of the Required Lenders); (ii) increase the amount of any scheduled payment of principal or interest on the Subordinate Debt or Senior Notes; (iii)
hasten or accelerate the date upon which any installment of principal or interest of any Subordinate Debt or any Senior Notes is due or otherwise accelerate the amortization schedule with respect to such Subordinate Debt or Senior Notes; (iv)
increase the rate of interest payable in cash accruing on the Subordinate Debt or Senior Notes (other than any increase to the “Default Rate” in the circumstances already provided for in the Subordinate Note Documents or the Senior Notes
Documents), or impose any additional premium or penalty in connection with the prepayment or late payment of the Subordinate Debt or Senior Notes; (v) subject to the last proviso of this Section 7.6, provide for the payment of additional fees
or for any increase in existing fees in connection with the Subordinate Debt or Senior Notes; (vi) add any covenant or obligation of the Borrower to any holder of Subordinate Debt or Senior Notes, including, without limitation, the Subordinate
Noteholders, which is not contained in the Combined Credit Agreements as then in effect; or (vii) amend or modify any covenant, obligation or default of the Borrower contained in the Subordinate Note Documents (including, without limitation,
financial ratios) in a manner which makes such covenants, obligations or defaults more restrictive or onerous than those contained in the Subordinated Note Purchase Agreement as in effect on the Global Effective Date or in the Combined Credit
Agreements as then in effect; 
  

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 provided, however, that, notwithstanding the foregoing or anything else to the contrary
contained in any Combined Loan Document, any agent, including, without limitation, the Subordinate Note Collateral Agent, any trustee and any holder of Subordinate Debt or Senior Notes, including, without limitation, the Subordinate Noteholders,
shall be entitled to receive fees for amendments (to the extent such amendments are permitted hereby), providing consents, waiving defaults or granting forbearances (but solely to the extent such fees are customary, do not exceed market rates and
are permitted by the Subordinate Note Documents or the Senior Notes Documents or otherwise approved by the Global Administrative Agent), and to the reimbursement of any reasonable out-of-pocket expenses (including fees and expenses of attorneys,
appraisers, consultants and advisors) relating thereto in accordance with the terms of the Subordinate Note Documents or the Senior Notes Documents, respectively.” 
  
 K. Section 7.14 of the U.S. Credit Agreement hereby is amended in its entirety to read as follows: 
  
 “ SECTION 7.14 Subordinated Debt, Senior Notes and Falcon Seaboard
Settlement Agreement. In addition to the other restrictions contained in this Article VII, the Borrower will not, nor will the Borrower permit any other Loan Party to, directly or indirectly, (a) make any payment of principal or any other
item of any Subordinated Debt or Senior Notes (other than accrued interest thereon and, as referenced in the definition of “Subordinated Obligations” contained in the Subordinated Note Purchase Agreement, expenses in accordance with the
terms thereof) or payment in respect of the purchase, repurchase, redemption or defeasance of principal or such other item of Subordinate Debt or Senior Notes (other than accrued interest thereon and, as referenced in the definition of
“Subordinated Obligations” contained in the Subordinated Note Purchase Agreement, expenses in accordance with the terms thereof) at any time prior to the earlier of (i) the termination of all Commitments and Canadian Commitments, the
payment and performance in full of the Combined Obligations, the termination or expiration of all Letters of Credit and the “Letters of Credit” (as defined in the Canadian Credit Agreement), and the termination or payment of all
“Bankers’ Acceptances” (as defined in the Canadian Credit Agreement) and (ii) the scheduled maturity of such Subordinate Debt or the Senior Notes, as applicable; (b) make any prepayment of interest prior to the time that such interest
is due except as expressly permitted by the terms hereof and by the terms of the loan documentation evidencing or governing such Subordinated Debt or the Senior Notes, as applicable; (c) permit (X) the outstanding principal balance of all
Subordinated Debt permitted pursuant to Subsection 7.1(b) (including, for sake of clarity, the Existing Subordinated Debt) to exceed U.S.$100,000,000 at any time and (Y) the outstanding principal balance of all Indebtedness permitted pursuant
to Sections 7.1(b) (including, for sake of clarity, the Existing Subordinated Debt), 7.1(o) and 7.1(p) to exceed U.S.$350,000,000 at any time; or (d) make any delivery on or with respect to the Falcon Seaboard Settlement
Agreement, except as expressly permitted by the terms of the Falcon Seaboard Settlement Agreement; provided, however, that the Borrower and/or any Subsidiaries may 
  

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 (x) deliver gas volumes at any time and from time to time prior to the stated delivery date thereof by
Borrower or any Affiliate of Borrower, or settle in cash at any time and from time to time the Borrower’s obligations, under the Falcon Seaboard Settlement Agreement, and (y) prepay or repay at any time and from time to time all or a portion of
the principal of, interest on and Make-Whole Amount (as defined in the Subordinated Note Purchase Agreement) of the Existing Subordinate Debt and/or other Subordinated Debt or Senior Notes prior to the scheduled maturity thereof, and may repay the
Existing Subordinate Debt or other Subordinated Debt or Senior Notes on or after the maturity date therefor, in each instance so long as, and only so long as, both immediately before and after giving effect thereto, (i) no Default, Event of Default,
Global Borrowing Base Deficiency or U.S. Borrowing Base Deficiency has occurred and is continuing or results therefrom, and (ii) at least U.S.$10,000,000 of Combined Unutilized Commitments exists at the time thereof. Notwithstanding anything to the
contrary contained in any Combined Loan Document, the Borrower shall be permitted to extend, renew, refinance or replace the Existing Subordinate Debt or Senior Notes at any time so long as the final maturity date of any such extension, renewal,
refinancing or replacement is no earlier than six (6) months after the Maturity Date.” 
  
 L. Subsection (n) of Section 8.1 of the U.S. Credit Agreement hereby is amended in its entirety to read as follows: 
  
 “ (n) a “Default” or “Event of Default” (each as defined in each material Subordinate Note
Document, including, without limitation, the Subordinated Note Purchase Agreement and the Convertible Note Indenture, and the Senior Notes Documents) shall occur and be continuing;”. 
  
 II. Amendments to Canadian Credit Agreement. 
  
 A. The definition of “Pledging Subsidiary” contained in Section 1.1 of the Canadian Credit Agreement
hereby is amended by deleting the reference to “issued and outstanding Equity Interests of a Material Subsidiary” and replacing such reference with “issued and outstanding Equity Interests of a Material Subsidiary or other
Person”. 
  
 B. The definition of “Subordinate Note
Documents” contained in Section 1.1 of the Canadian Credit Agreement hereby is amended in its entirety to read as follows: 
  
 “ “Subordinate Note Documents” means (i) the Subordinated Note Purchase Agreement, the Subordinate Notes, and all promissory notes,
security agreements, deeds of trust, assignments, guarantees and other documents, instruments and agreements executed and delivered pursuant to the Subordinated Note Purchase Agreement evidencing, securing, guaranteeing or otherwise pertaining to
the Existing Subordinate Debt and the other obligations arising under the Subordinated Note Purchase Agreement and (ii) the Convertible Note Indenture, and all promissory notes, guarantees and other documents, instruments and agreements executed and
delivered pursuant to the Convertible Note Indenture evidencing, guaranteeing or otherwise pertaining to Subordinated Debt (other than 
  

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 the Existing Subordinate Debt), as the foregoing may be amended, restated, renewed, extended,
supplemented, increased, replaced or otherwise modified from time to time to the extent permitted hereunder and under such Subordinate Note Documents.” 
  
 C. Section 1.1 of the Canadian Credit Agreement hereby is amended by inserting the definitions of “Convertible Note Indenture”,
“Senior Notes” and “Senior Notes Documents” in appropriate alphabetical order: 
  
 “ “Convertible Note Indenture” means that certain Indenture dated as of November 1, 2004, between the Parent and JPMorgan Chase
Bank, as the same may be modified, amended, renewed, supplemented, extended, restated, increased or replaced from time to time to the extent permitted hereunder and under the Convertible Note Indenture. 
  
 “Senior Notes” means any unsecured
Indebtedness of the Parent, which Indebtedness may be convertible into the capital stock of the Parent, and any Guarantees thereof by Subsidiaries of the Parent, incurred or assumed after the date of this Agreement provided, that all such
Indebtedness (i) has a maturity date at least six (6) months after the Maturity Date, (ii) is not permitted to be prepaid (other than by the conversion of any such Indebtedness into the capital stock of the Parent) without the written consent of the
Global Administrative Agent and the Required Lenders, (iii) has a coupon not in excess of nine percent (9%); (iv) contains covenants not materially more onerous to Parent and its Subsidiaries than those contained in the Combined Loan Documents and
(v) contains other terms and conditions (including amount, interest, amortization, covenants and events of default) as are satisfactory to the Global Administrative Agent and the Required Lenders. 
  
 “Senior Notes Documents” means the
indentures or other agreements under which any Senior Notes are issued and all other instruments, agreements and other documents evidencing or governing such Senior Notes or providing for any Guarantee or other right in respect thereof.”

  
 D. Subsection (h) of Section 2.7 of the Canadian
Credit Agreement hereby is amended by deleting the reference to “(h) Issuance of Other Subordinated Debt. In the event of the issuance of any Subordinated Debt permitted pursuant to Section 7.1(o)” and replacing such
reference with “(h) Issuance of Other Indebtedness. In the event of the issuance of (i) any Subordinated Debt permitted pursuant to Section 7.1(b) in excess of an aggregate amount of $70,000,000 for all Subordinated Debt issued
pursuant to Section 7.1(b) or (ii) any Indebtedness permitted pursuant to Sections 7.1(o) and 7.1(p)”. 
  
 E. Subsection 5.1(c) of the Canadian Credit Agreement hereby is amended by deleting the reference to “any Loan Party” and replacing such
reference with “any Loan Party or Person which has any of its Equity Interests pledged pursuant to a Pledge Agreement”. 
  

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 F. Article V of the Canadian Credit Agreement hereby is amended inserting the following Section
5.13 after Section 5.12 thereof: 
  
 “ Section
5.13 Pledges of Equity Interests in non-Loan Parties. Prior to any Investment being considered a Permitted Investment pursuant to subsections (k) and (q) of the definition of “Permitted Investment” contained in the
U.S. Credit Agreement, the Borrower or relevant Subsidiary, as applicable, will pledge all Equity Interests in the Person into which the Investment was or will be made which are owned by the Borrower or such Subsidiary and shall execute and deliver
to the Global Administrative Agent a Pledge Agreement together with (i) all certificates (or other evidence acceptable to the Global Administrative Agent) evidencing the issued and outstanding Equity Interests owned by the Borrower or such
Subsidiary of any such Person of every class owned by the Borrower or such Subsidiary (as applicable) which shall be duly endorsed or accompanied by stock powers executed in blank (as applicable), and (ii) such filings as the Global Administrative
Agent shall deem reasonably necessary or appropriate to grant, evidence and perfect the Liens required hereunder in the issued and outstanding Equity Interests of each such Person.” 
  
 G. Section 7.1 of the Canadian Credit Agreement hereby is amended by (i) revising the current Subsection
7.1(b) in its entirety to read as follows: 
  
 “ (b) (i)
secured Subordinated Debt (including, without limitation, the Existing Subordinated Debt), and (ii) Guarantees by any Subsidiary of the Subordinated Debt (including the Existing Subordinate Debt); provided, however, that all such
Subordinated Debt (inclusive of the Existing Subordinated Debt) does not exceed an aggregate principal amount of U.S.$100,000,000 and shall be in compliance with the requirements of Section 7.14 of the U.S. Credit Agreement; and provided,
further, that all Indebtedness permitted pursuant to Sections 7.1(b), 7.1(o) and 7.1(p) does not exceed an aggregate principal amount of U.S.$350,000,000;”; 
  
 (ii) revising the current Subsection 7.1(l) in its entirety to read as follows: 
  
 “ (l) Indebtedness constituting “Permitted Investments” under
the U.S. Credit Agreement, provided that with respect to subsections (k) and (p) of the definition of “Permitted Investments” under the U.S. Credit Agreement, references to “Sections 5.18 and
5.19” shall be deemed to be references to “Sections 5.10 and 5.13” of this Agreement;”; 
  
 (iii) deleting the reference to “and” at the end of Subsection 7.1(n), (iv) revising the current Subsection 7.1(o) in its entirety
to read as follows: 
  
 “ (o) other unsecured Subordinated
Debt of the Parent, which Subordinated Debt may be convertible into capital stock of the Parent, and Guarantees by Subsidiaries of the Parent of such Subordinated Debt; provided, however, that all such Subordinated Debt (i) does not
exceed an aggregate principal amount of U.S.$350,000,000, (ii) is subordinated in right of security and payment to the payment in full in cash and cash equivalents of all Combined 
  

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 Obligations of the Parent or the relevant Subsidiary of the Parent, as the case may be, on terms and
conditions satisfactory to the Global Administrative Agent and the Required Lenders, (iii) has a maturity date at least six (6) months after the Maturity Date, (iv) is not permitted to be prepaid (other than the conversion of such Subordinated Debt
to capital stock of the Parent) without the written consent of the Global Administrative Agent and the Required Lenders, (v) has a coupon not in excess of nine percent (9%); (vi) contains covenants not materially more onerous to the Parent and its
Subsidiaries than those contained in the Combined Loan Documents and (vii) contains other terms and conditions (including amount, interest, amortization, covenants and events of default) as are satisfactory to the Global Administrative Agent and the
Required Lenders, and provided, further, that all Indebtedness permitted pursuant to Sections 7.1(b), 7.1(o) and 7.1(p) does not exceed an aggregate principal amount of U.S.$350,000,000; and”; 
  
 (v) inserting the following Subsection 7.1(p) after Subsection 7.1(o):

  
 “ (p) unsecured Senior Notes of the Parent and
Guarantees by Subsidiaries of the Parent of such Senior Notes; provided, however, that the aggregate principal amount of such Senior Notes does not exceed U.S.$200,000,000, and provided, further, that all Indebtedness
permitted pursuant to Sections 7.1(b), 7.1(o) and 7.1(p) does not exceed an aggregate principal amount of U.S.$350,000,000;”; 
  
 and (vi) revising the proviso after the current Subsection 7.1(o) to read as follows: 
  
 “provided, that, the Borrower may not incur any new Indebtedness (other than (i) the renewal, extension,
refinancing or replacement of the Existing Subordinated Debt and (ii) Guarantees by any Subsidiaries thereof to the extent the same is incurred in accordance with Section 7.14 of the U.S. Credit Agreement) described in clauses (b), (g), (j),
(k), (o) and (p) above at any time that a Default, Event of Default, Global Borrowing Base Deficiency or U.S. Borrowing Base Deficiency has occurred and is continuing.” 
  
 H. Subsection (n) of Section 8.1 of the Canadian Credit Agreement hereby is amended in its entirety to read as
follows: 
  
 “ (n) a “Default” or “Event of
Default” (each as defined in each material Subordinate Note Document, including, without limitation, the Subordinated Note Purchase Agreement and the Convertible Note Indenture, and the Senior Notes Documents) shall occur and be
continuing;”. 
  
 III. Effectiveness. This
Amendment shall become effective as of the date (the “Effective Date”) when the Global Administrative Agent shall have received counterparts hereof duly executed by the U.S. Borrower, the Canadian Borrower, the Global Administrative
Agent, the Canadian Administrative Agent and the Combined Lenders (or, in the case of any party as to which an executed counterpart shall not have been received, telegraphic, telex, or other written confirmation from such party of execution of a
counterpart hereof by such party). 
  

 11 

 IV. Reaffirmation of Representations and Warranties. To induce the Combined Lenders and the
Global Administrative Agent to enter into this Amendment, the U.S. Borrower and the Canadian Borrower hereby reaffirm, as of the date hereof, the following: 
  
 (i) The representations and warranties of each Loan Party (as such term is defined in the U.S. Credit Agreement and the Canadian Credit
Agreement, collectively, the “Combined Loan Parties”) set forth in the Combined Loan Documents to which it is a party are true and correct on and as of the date hereof (or, if stated to have been made expressly as of an earlier
date, were true and correct in all material respects as of such date). 
  
 (ii) Each of the Combined Loan Parties (a) is a corporation, partnership or limited liability company duly incorporated or organized (as applicable), validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization, (b) has all corporate, partnership or limited liability company power (as applicable) and all material governmental licenses, authorizations, consents and approvals required to carry on its businesses
as now conducted and as proposed to be conducted, and (c) is duly qualified to transact business as a foreign corporation, partnership or limited liability company in each jurisdiction where a failure to be so qualified would reasonably be expected
to have a Material Adverse Effect. 
  
 (iii) The
execution, delivery and performance of this Amendment and the other Combined Loan Documents by each Combined Loan Party (to the extent each Loan Party is a party to this Agreement and such Loan Documents) (a) are within such Loan Party’s
corporate, partnership or limited liability company powers, (b) when executed will be duly authorized by all necessary corporate, partnership or limited liability company action, (c) require no action by or in respect of, or filing with, any
Governmental Authority (other than (i) actions or filings pursuant to the Exchange Act and (ii) actions or filings that have been taken or made and are in full force and effect) and (d) do not contravene, or constitute a default under, any provision
of applicable Governmental Rule (including, without limitation, Regulation U) or of the articles or certificate of incorporation, bylaws, regulations, partnership agreement or comparable charter documents of any Combined Loan Party or of any
agreement, judgment, injunction, order, decree or other instrument binding upon any Combined Loan Party or result in the creation or imposition of any Lien on any Borrowing Base Property or Collateral other than the Liens securing the Combined
Obligations. 
  
 (iv) This Amendment and each
other Combined Loan Document constitutes, or when executed and delivered will constitute, valid and binding obligations of each Combined Loan Party which is a party thereto, enforceable against each such Combined Loan Party which executes the same
in accordance with its terms except as the enforceability thereof may be limited by (i) bankruptcy, insolvency, reorganization, moratorium, or similar Governmental Rules affecting creditors’ rights generally, and (ii) equitable principles of
general applicability (whether enforcement is sought by proceedings at law or in equity). 
  

 12 

 (v) Neither a Default nor an Event of Default has occurred or will exist under either
Combined Credit Agreement after giving effect to the transactions contemplated by this Amendment or the other Combined Loan Documents. Neither the U.S. Borrower or any of its Subsidiaries nor the Canadian Borrower or any of its Subsidiaries is in
default under, nor has any event or circumstance occurred which, but for the expiration of any applicable grace period or the giving of notice, or both, would constitute a default under, any Material Agreement to which the U.S. Borrower or any of
its Subsidiaries or the Canadian Borrower or any of its Subsidiaries is a party or by which the U.S. Borrower or any of its Subsidiaries or the Canadian Borrower or any of its Subsidiaries is bound which default would reasonably be expected to have
a Material Adverse Effect. The U.S. Borrower is in compliance with the financial covenants set forth in Article VI of the U.S. Credit Agreement. 
  
 (vi) No event or events have occurred since December 31, 2003 which individually or in the aggregate would reasonably be expected to have
a Material Adverse Effect. 
  
 V. Defined Terms.
Except as amended hereby, terms used herein when defined in the U.S. Credit Agreement shall have the same meanings herein unless the context otherwise requires. 
  

VI. Reaffirmation of Combined Credit Agreements. This Amendment shall be deemed to be an amendment to the Combined Credit Agreements, and
the Combined Credit Agreements, as amended hereby, are hereby ratified, approved and confirmed in each and every respect. All references to the Combined Credit Agreements herein and in any other document, instrument, agreement or writing shall
hereafter be deemed to refer to the Combined Credit Agreements as amended hereby. 
  
 VII. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. 
  
 NOTWITHSTANDING THE FOREGOING SENTENCE AND AFTER GIVING EFFECT TO THE TEXTUAL AMENDMENTS CONTAINED IN SECTIONS I AND II OF THIS AMENDMENT, (i) THE U.S.
CREDIT AGREEMENT (AS AMENDED HEREBY) SHALL CONTINUE TO BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW SPECIFIED IN SECTION 10.9(a) OF THE U.S. CREDIT AGREEMENT, AND (ii) THE CANADIAN CREDIT AGREEMENT (AS AMENDED HEREBY) SHALL CONTINUE TO
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW SPECIFIED IN SECTION 10.9(a) OF THE CANADIAN CREDIT AGREEMENT. 
  
 VIII. Severability of Provisions. Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a
particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  

 13 

 IX. Counterparts. This Amendment may be executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by telecopy shall be
effective as delivery of a manually executed counterpart of this Amendment. 
  
 X. Headings. Article and Section headings used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in
interpreting, this Amendment. 
  
 XI. Successors and
Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Letter of Credit), except
that neither the U.S. Borrower nor the Canadian Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Global Administrative Agent, each Issuing Bank and each Combined Lender
(and any attempted assignment or transfer by either the U.S. Borrower or the Canadian Borrower without such consent shall be null and void). 
  
 XII. No Oral Agreements. THIS AMENDMENT, THE COMBINED CREDIT AGREEMENTS, AS AMENDED HEREBY, AND THE OTHER COMBINED LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG
THE PARTIES. 
  
 [SIGNATURES BEGIN ON FOLLOWING PAGE]

  

 14 

 IN WITNESS WHEREOF, the U.S. Borrower, the Canadian Borrower, the undersigned Combined Lenders, the
Global Administrative Agent, and the other “agents” under the Combined Credit Agreements have executed this Amendment as of the date first above written. 
  

			
	U.S. BORROWER
	
	QUICKSILVER RESOURCES INC.
		
	By:	 	 /s/ MarLu Hiller

	Name:	 	MarLu Hiller
	Title:	 	Treasurer
	
	CANADIAN BORROWER
	
	MGV ENERGY INC.
		
	By:	 	 /s/ MarLu Hiller

	Name:	 	MarLu Hiller
	Title:	 	Treasurer

  

 S - 1 

			
	AGENTS AND COMBINED LENDERS
	
	JPMORGAN CHASE BANK, N.A. (successor by merger to Bank One, N.A.), as Global Administrative Agent and as a U.S. Lender
		
	By:	 	 /s/ J. Scott Fowler

	Name:	 	J. Scott Fowler
	Title:	 	Vice President

  

 S - 2 

			
	BNP PARIBAS, as a Co-Global Syndication Agent and as a U.S. Lender
		
	By:	 	 /s/ Brian M. Malone

	Name:	 	Brian M. Malone
	Title:	 	Managing Director
		
	By:	 	 /s/ Russell Otts

	Name:	 	Russell Otts
	Title:	 	Vice President

  

 S - 3 

			
	 BANK OF AMERICA, N.A., as a Co-Global
 Syndication Agent and as a U.S. Lender

		
	By:	 	 /s/ Michael J. Dillon

	Name:	 	Michael J. Dillon
	Title:	 	Senior Vice President

  

 S - 4 

			
	 FORTIS CAPITAL CORP., as the Co-Global
 Documentation Agent and as a U.S. Lender

		
	By:	 	 /s/ Michele Jones

	Name:	 	Michele Jones
	Title:	 	Senior Vice President
		
	By:	 	 /s/ Darrell Holley

	Name:	 	Darrell Holley
	Title:	 	Managing Director

  

 S - 5 

			
	 THE BANK OF NOVA SCOTIA, as a Co-Global
 Documentation Agent and as a U.S. Lender

		
	By:	 	 /s/ V. Gibson

	Name:	 	V. Gibson
	Title:	 	Assistant Agent

  

 S - 6 

			
	COMERICA BANK, as a U.S. Lender
		
	By:	 	 /s/ Alison J. Fuqua

	Name:	 	Alison J. Fuqua
	Title:	 	Corporate Banking Officer

  

 S - 7 

			
	 THE ROYAL BANK OF SCOTLAND PLC, as a
 U.S. Lender

		
	By:	 	 /s/ Phillip R. Ballard

	Name:	 	Phillip R. Ballard
	Title:	 	Sr. Vice President

  

 S - 8 

			
	 CALYON NEW YORK BRANCH, as a U.S.
 Lender

		
	By:	 	 /s/ Olivier Audernard

	Name:	 	Olivier Audernard
	Title:	 	Managing Director
		
	By:	 	 /s/ Philippe Soustra

	Name:	 	Philippe Soustra
	Title:	 	Executive Vice President

  

 S - 9 

			
	CIBC INC., as a U.S. Lender
		
	By:	 	 /s/ Dominic J. Sorresso

	Name:	 	Dominic J. Sorresso
	Title:	 	Executive Director
	
	CIBC World Markets Corp., as Agent

  

 S - 10 

			
	COMPASS BANK, as a U.S. Lender
		
	By:	 	 /s/ John M. Rauzo

	Name:	 	John M. Rauzo
	Title:	 	Senior Vice President

  

 S - 11 

			
	STERLING BANK, as a U.S. Lender
		
	By:	 	 /s/ Melissa A. Bauman

	Name:	 	Melissa A. Bauman
	Title:	 	Senior Vice President

  

 S - 12 

			
	 TORONTO DOMINION (TEXAS) LLC (as
 successor in interest to Toronto Dominion (Texas),
 Inc.), as a U.S. Lender

		
	By:	 	 /s/ Neva Nesbitt

	Name:	 	Neva Nesbitt
	Title:	 	Authorized Agent

  

 S - 13 

			
	 HARRIS NESBITT FINANCING, INC., as a
 U.S. Lender

		
	By:	 	 /s/ Mary Lou Allen

	Name:	 	Mary Lou Allen
	Title:	 	Vice President

  

 S - 14 

			
	SOCIETE GENERALE, as a U.S. Lender
		
	By:	 	 /s/ Stephen W. Wartel

	Name:	 	Stephen W. Wartel
	Title:	 	Vice President

  

 S - 15 

			
	 JPMORGAN CHASE BANK, N.A., TORONTO
 BRANCH, (successor by merger to Bank One,
 N.A., Canada Branch), as Canadian Administrative
 Agent and as a Canadian Lender

		
	By:	 	 /s/ J. Scott Fowler

	Name:	 	J. Scott Fowler
	Title:	 	Vice President

  

 S - 16 

			
	 BNP PARIBAS (CANADA), as a Canadian
 Lender

		
	By:	 	 /s/ Edward Pak

	Name:	 	Edward Pak
	Title:	 	Assistant Vice President
		
	By:	 	 /s/ Krista McLeod

	Name:	 	Krista McLeod
	Title:	 	Assistant Vice President

  

 S - 17 

			
	 BANK OF AMERICA, N.A. (by its Canada
 branch), as a Canadian Lender

		
	By:	 	 /s/ Medina Sales De Andrade

	Name:	 	Medina Sales De Andrade
	Title:	 	Assistant Vice President

  

 S - 18 

			
	 THE BANK OF NOVA SCOTIA, as a Canadian
 Lender

		
	By:	 	 /s/ Brian Williamson

	Name:	 	Brian Williamson
	Title:	 	Director

  

 S - 19 

			
	 COMERICA BANK, CANADA BRANCH, as a
 Canadian Lender

		
	By:	 	 /s/ Robert C. Rosen

	Name:	 	Robert C. Rosen
	Title:	 	Vice President

  

 S - 20 

			
	 CANADIAN IMPERIAL BANK OF
 COMMERCE, as a Canadian Lender

		
	By:	 	 /s/ Randy Geislinger

	Name:	 	Randy Geislinger
	Title:	 	Director
		
	By:	 	 /s/ Joelle Chatwin

	Name:	 	Joelle Chatwin
	Title:	 	Executive Director

  

 S - 21 

			
	 TORONTO DOMINION BANK, as a Canadian
 Lender

		
	By:	 	 /s/ Parin Kanji

	Name:	 	Parin Kanji
	Title:	 	Assistant Manager – Corporate Credit Admin

  

 S - 22 

			
	BANK OF MONTREAL, as a Canadian Lender
		
	By:	 	 /s/ Mary Lou Allen

	Name:	 	Mary Lou Allen
	Title:	 	Vice President

  

 S - 23 

			
	 SOCIETE GENERALE (CANADA), as a
 Canadian Lender

		
	By:	 	 /s/ FranVois Laliberté

	Name:	 	FranVois Laliberté
	Title:	 	Managing Director
		
	By:	 	 /s/ David Baldoni

	Name:	 	David Baldoni
	Title:	 	Managing Director

  

 S - 24 

			
	 FORTIS CAPITAL (CANADA) LTD., as a
 Canadian Lender

		
	By:	 	 /s/ Darrell Holley

	Name:	 	Darrell Holley
	Title:	 	Managing Director

  

 S - 25Fifth Amendment to Note Purchase Agreement

 Exhibit 10.2 
  
 FIFTH AMENDMENT 
  
 TO 
  
 NOTE PURCHASE AGREEMENT 
  
 Dated as of June 24, 2005 
  
 AMONG 
  
 QUICKSILVER RESOURCES
INC., 
  
 AS ISSUER,

  
 THE GUARANTORS, 
  
 BNP PARIBAS, 
  
 AS COLLATERAL AGENT,

  
 AND 
  
 THE PURCHASERS PARTY HERETO 

 FIFTH AMENDMENT TO NOTE PURCHASE AGREEMENT 
  
 THIS FIFTH AMENDMENT TO NOTE PURCHASE AGREEMENT (this
“Fifth Amendment”) dated as of June 24, 2005, is among QUICKSILVER RESOURCES INC., a Delaware corporation (the “Company”); each of the undersigned Guarantors (collectively, the “Guarantors”); BNP
PARIBAS, as collateral agent (in such capacity, together with its successors in such capacity, the “Collateral Agent”) for the purchasers party to the Note Purchase Agreement referred to below (collectively, the
“Purchasers”); and each of the undersigned Purchasers. 
  
 R E C I T A L S 
  
 A. The Company, the
Collateral Agent and the Purchasers are parties to that certain Note Purchase Agreement dated as of June 27, 2003, as amended by the First Amendment to Note Purchase Agreement dated as of January 30, 2004, the Second Amendment to Note Purchase
Agreement dated as of July 28, 2004, the Third Amendment to Note Purchase Agreement dated as of September 14, 2004, and the Fourth Amendment to Note Purchase Agreement dated as of April 12, 2005 (as amended, the “Note Purchase
Agreement”), pursuant to which the Purchasers have purchased $70 million of the Company’s Floating and Fixed Rate Senior Subordinated Second Lien Mortgage Notes due December 31, 2006 (the “Notes”). 
  
 B. The Company has requested and the Purchasers have agreed to amend certain
provisions of the Note Purchase Agreement. 
  
 C. NOW, THEREFORE,
in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 Section 1. Defined Terms. Each capitalized term used herein but not
otherwise defined herein has the meaning given such term in the Note Purchase Agreement, as amended by this Fifth Amendment. Unless otherwise indicated, all references to sections or schedules in this Fifth Amendment refer to sections of, or
schedules to, the Note Purchase Agreement. 
  
 Section 2.
Amendments to Note Purchase Agreement. 
  
 2.1
Amendment to Section 5.1(l). Section 5.1(l) is hereby amended by inserting the words “As of the date of the Fifth Amendment,” at the beginning of each of the sentences contained in clauses (i), (ii) and (iii) and making lower case
the previous first word in each of such sentences. 
  
 2.2
Amendment to Section 9.1(h). The first sentence of Section 9.1(h) is hereby amended by adding “or” after subsection (vi), replacing the period following subsection (vii) and replacing it with “;”, and inserting the
following subsections (viii) and (ix) following subsection (vii): 
  
 “(viii) the sale, assignment or transfer of a portion of an Equity Interest in any Investment Subsidiary to an unaffiliated third party; provided that the 

 
consideration received in respect of such sale, assignment or other disposition shall be equal to or greater than the fair market value of such Equity
Interest in such Investment Subsidiary sold, assigned or transferred, or (ix) the sale, assignment or transfer of any portion of an Equity Interest in an Investment Entity, provided that the consideration received in respect of such sale, assignment
or other disposition shall be equal to or greater than the fair market value of such Equity Interest in such Investment Entity sold, assigned or transferred.” 
  
 2.3 Amendments to Schedule B. The definitions in Schedule B are hereby added or amended as follows: 
  
 (a) The following definitions are hereby added in the
appropriate alphabetical order: 
  
 “ “Fifth
Amendment” means the Fifth Amendment to this Agreement entered into as of June 24, 2005, among the Company, BNP Paribas and the Purchasers party thereto.” 
  
 “ “Investment Entity” means any Person which is (a) not an Investment Subsidiary or a Guarantor and
(b) owns, leases, holds and/or is party to (i) any Oil and Gas Properties, (ii) any gas processing or gas gathering systems, (iii) any farm-out, farm-in, joint operating, joint venture or area of mutual interest agreements and/or (iv) any gas
gathering systems, pipelines or other similar arrangements, in each case located within or related to the geographic boundaries of the United States of America or Canada.” 
  
 “ “Investment Subsidiary” means any direct or indirect Subsidiaries of the Company (other than
Guarantors) that own, lease, hold and/or are party to (a) any Oil and Gas Properties, (b) any gas processing or gas gathering systems, (c) any farm-out, farm-in, joint operating, joint venture or area of mutual interest agreements and/or (d) any gas
gathering systems, pipelines or other similar arrangements, in each case located within or related to the geographic boundaries of the United States of America or Canada. Notwithstanding anything to the contrary contained herein or in any other
Transaction Document, Investment Subsidiaries shall be deemed not to be Subsidiaries of the Company for purposes of Sections 5.1(i), 9.1(a), 9.1(b), 9.1(c), 9.1(f), 9.1(g), 9.1(h), 9.1(k) and 9.1(l).” 
  
 (b) The definition of “Applicable Margin”
is hereby amended and restated in its entirety as follows: 
  
 “ “Applicable Margin” means, for any day, with respect to any Floating Rate Note while the Adjusted LIBO Rate is in effect, a rate per annum equal to 4.06% and, while the Alternate Base Rate is
in effect, a rate per annum equal to 2.52%.” 
  

 2 

 (c) Clause (g) of the definition of “Permitted Investments” is hereby
deleted and the following inserted in lieu thereof: 
  
 “(g) Investments (i) in or to the Company or any Guarantor, (ii) in any Foreign Subsidiaries existing as of the Second Amendment Effective Date, (iii) made after the Second Amendment Effective Date in the form of loans to MGV or any
other Foreign Subsidiary in an aggregate principal amount not to exceed $20,000,000, (iv) in or to any Person in an aggregate amount at any one time outstanding not to exceed $20,000,000, (v) in or to any Investment Subsidiary so long as the Equity
Interests of any such Investment Subsidiary, to the extent required by Section 8.2(e), have been pledged to the Collateral Agent, and (vi) in or to any Investment Entity in an aggregate amount during any fiscal year not to exceed $30,000,000 and at
any one time outstanding not to exceed $80,000,000.” 
  
 (d) The definition of “Subsidiary” is hereby amended and restated in its entirety as follows: 
  
 “ “Subsidiary” means, with respect to any Person (the “parent”) at any date any corporation, limited liability company,
partnership (limited or general), association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with
GAAP as of such date. Unless otherwise indicated herein, each reference to the term “Subsidiary” shall mean a Subsidiary of the Company, subject to the limitations in the definition of “Investment Subsidiary”.”

  
 2.4 Amendment to Disclosure Schedule. Schedule C-1 (the
Disclosure Schedule) is hereby amended and restated to read as set forth on Schedule C-1 attached as Exhibit A to this Fifth Amendment, which supersedes and replaces in its entirety Schedule C and Schedule C-1 to the Note Purchase Agreement.

  
 Section 3. Conditions Precedent. This Fifth Amendment
shall not become effective until the date on which each of the following conditions is satisfied (the “Effective Date”): 
  
 3.1 On or prior to the Effective Date, the Collateral Agent and each Purchaser shall have received all fees and other amounts due and payable in
connection with this Fifth Amendment in accordance with Section 14.1 of the Note Purchase Agreement. 
  
 3.2 The Collateral Agent shall have received from all of the Purchasers, the Company and the Guarantors counterparts (in such number as may be requested
by the Collateral Agent) of this Fifth Amendment signed on behalf of such Persons. 
  
 3.3 No Default shall have occurred and be continuing, after giving effect to the terms of this Fifth Amendment. 
  
 3.4 The Collateral Agent shall have received such other documents as the Collateral Agent or special counsel to the Collateral Agent may reasonably
request. 
  

 3 

 The Collateral Agent shall notify the Company and the Purchasers in writing of the Effective Date. 
  
 Section 4. Miscellaneous. 
  
 4.1 Confirmation. The provisions of the Note Purchase Agreement, as
amended by this Fifth Amendment, shall remain in full force and effect following the effectiveness of this Fifth Amendment. 
  
 4.2 Ratification and Affirmation; Representations and Warranties. The Company and each Guarantor hereby (i) acknowledges the terms of this Fifth
Amendment; (ii) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Transaction Document to which it is a party and agrees that each Transaction Document to which it is a party remains
in full force and effect, except as expressly amended hereby; and (iii) represents and warrants to the Purchasers that as of the date hereof, after giving effect to the terms of this Fifth Amendment: (A) all of the representations and warranties
contained in each Transaction Document to which it is a party are true and correct, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall
continue to be true and correct, as of such specified earlier date, (B) no Default has occurred and is continuing and (C) since December 31, 2002, there has been no event, development or circumstance that has had or could reasonably be expected to
have a Material Adverse Effect. 
  
 4.3 Transaction
Document. This Fifth Amendment is a “Transaction Document” as defined and described in the Note Purchase Agreement and all of the terms and provisions of the Note Purchase Agreement relating to Transaction Documents shall apply hereto.

  
 4.4 Purchasers’ Satisfaction. For purposes of
determining compliance with the conditions specified in Section 3 hereof, each of the undersigned Purchasers shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Purchaser upon its execution and delivery of a counterpart of this Fifth Amendment. 
  
 4.5 Counterparts. This Fifth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Fifth Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. 
  
 4.6 No Oral Agreement. THIS FIFTH
AMENDMENT, THE NOTE PURCHASE AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR UNWRITTEN AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL
AGREEMENTS BETWEEN THE PARTIES. 
  
 4.7 GOVERNING LAW. THIS FIFTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 [SIGNATURES BEGIN NEXT PAGE] 
  

 4 

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

					
	COMPANY:	 	QUICKSILVER RESOURCES INC.
			
	 	 	By:	 	 /s/ MarLu Hiller

	 	 	Name:	 	MarLu Hiller
	 	 	Title:	 	Treasurer
		
	GUARANTORS:	 	BEAVER CREEK PIPELINE, L.L.C.
			
	 	 	By:	 	 /s/ MarLu Hiller

	 	 	Name:	 	MarLu Hiller
	 	 	Title:	 	Treasurer
		
	 	 	TERRA ENERGY LTD.
			
	 	 	By:	 	 /s/ MarLu Hiller

	 	 	Name:	 	MarLu Hiller
	 	 	Title:	 	Treasurer
		
	 	 	MERCURY MICHIGAN, INC.
			
	 	 	By:	 	 /s/ MarLu Hiller

	 	 	Name:	 	MarLu Hiller
	 	 	Title:	 	Treasurer
		
	 	 	GTG PIPELINE CORPORATION
			
	 	 	By:	 	 /s/ MarLu Hiller

	 	 	Name:	 	MarLu Hiller
	 	 	Title:	 	Treasurer

  
 [Signature Page to
Fifth Amendment] 
  

 Page 1 

							
	TERRA PIPELINE COMPANY
		
	By:	 	 /s/ MarLu Hiller

	Name:	 	MarLu Hiller
	Title:	 	Treasurer
	
	COWTOWN PIPELINE FUNDING, INC.
		
	By:	 	 /s/ MarLu Hiller

	Name:	 	MarLu Hiller
	Title:	 	Treasurer
	
	COWTOWN PIPELINE MANAGEMENT, INC.
		
	By:	 	 /s/ MarLu Hiller

	Name:	 	MarLu Hiller
	Title:	 	Treasurer
	
	COWTOWN PIPELINE L.P.
		
	By:	 	Cowtown Pipeline Management, Inc.,
	 	 	as General Partner
			
	 	 	By:	 	 /s/ MarLu Hiller

	 	 	Name:	 	MarLu Hiller
	 	 	Title:	 	Treasurer

  
 [Signature Page
to Fifth Amendment] 
  

 Page 2 

					
	COLLATERAL AGENT:	 	BNP PARIBAS, as a Purchaser and as
	 	 	Collateral Agent
			
	 	 	By:	 	 /s/ Brian M. Malone

	 	 	Name:	 	Brian M. Malone
	 	 	Title:	 	Managing Director
			
	 	 	By:	 	 /s/ Russell Otts

	 	 	Name:	 	Russell Otts
	 	 	Title:	 	Vice President
		
	PURCHASERS:	 	FORTIS CAPITAL CORP.
			
	 	 	By:	 	 /s/ Michele Jones

	 	 	Name:	 	Michele Jones
	 	 	Title:	 	Senior Vice President
			
	 	 	By:	 	 /s/ Darrell Holley

	 	 	Name:	 	Darrell Holley
	 	 	Title:	 	Managing Director
		
	 	 	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
			
	 	 	By:	 	 /s/ Randall M. Kob

	 	 	Name:	 	Randall M. Kob
	 	 	Title:	 	Vice President
		
	 	 	THE ROYAL BANK OF SCOTLAND plc
			
	 	 	By:	 	 /s/ Phillip R. Ballard

	 	 	Name:	 	Phillip R. Ballard
	 	 	Title:	 	Sr. Vice President

  
 [Signature Page to
Fifth Amendment] 
  

 Page 3

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