Document:

exv10w4

 

OMNIBUS

AGREEMENT

BY AND AMONG

QUICKSILVER GAS SERVICES LP,

QUICKSILVER GAS SERVICES GP LLC

AND

QUICKSILVER RESOURCES INC.

 

 

Table of Contents

	 	 	 	 	 	 	 
	 

	 	ARTICLE I	 	 	 	 
	 

	 	Definitions	 	 	 	 
	1.1

	 	Definitions
	 	 	1	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	Non-competition and Business Opportunities	 	 	 	 
	2.1

	 	Restricted Businesses
	 	 	5	 
	2.2

	 	Permitted Exceptions
	 	 	5	 
	2.3

	 	Procedures
	 	 	6	 
	2.4

	 	Scope of Prohibition
	 	 	12	 
	2.5

	 	Enforcement
	 	 	12	 
	2.6

	 	Termination
	 	 	12	 
	 

	 	ARTICLE III	 	 	 	 
	 

	 	Indemnification	 	 	 	 
	3.1

	 	Environmental Indemnification
	 	 	12	 
	3.2

	 	Additional Indemnification
	 	 	12	 
	3.3

	 	Limitations Regarding Indemnification
	 	 	13	 
	3.4

	 	Indemnification by the Partnership Group
	 	 	14	 
	3.5

	 	Indemnification Procedures
	 	 	14	 
	 

	 	ARTICLE IV	 	 	 	 
	 

	 	Reimbursement Obligations	 	 	 	 
	4.1

	 	Reimbursement for Operating and General and Administrative Expenses.
	 	 	15	 
	4.2

	 	Reimbursement for Insurance
	 	 	15	 
	 

	 	ARTICLE V	 	 	 	 
	 

	 	Miscellaneous	 	 	 	 
	5.1

	 	Choice of Law; Submission to Jurisdiction
	 	 	16	 
	5.2

	 	Notice
	 	 	16	 
	5.3

	 	Entire Agreement
	 	 	16	 
	5.4

	 	Termination
	 	 	16	 
	5.5

	 	Effect of Waiver or Consent
	 	 	16	 
	5.6

	 	Amendment or Modification
	 	 	17	 
	5.7

	 	Assignment; Third Party Beneficiaries
	 	 	17	 
	5.8

	 	Counterparts
	 	 	17	 
	5.9

	 	Severability
	 	 	17	 
	5.10

	 	Gender, Parts, Articles and Sections
	 	 	17	 
	5.11

	 	Further Assurances
	 	 	17	 
	5.12

	 	Withholding or Granting of Consent
	 	 	17	 
	5.13

	 	Laws and Regulations
	 	 	18	 
	5.14

	 	Negation of Rights of Limited Partners, Assignees and Third Parties
	 	 	18	 
	5.15

	 	No Recourse Against Officers or Directors
	 	 	18	 

i 

 

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as of, the Closing Date
(as defined herein), and is by and among Quicksilver Gas Services LP, a Delaware limited
partnership (the “MLP”), Quicksilver Gas Services GP LLC, a Delaware limited liability company
(“General Partner”), and Quicksilver Resources Inc., a Delaware corporation (“Quicksilver”). The
above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively
as the “Parties.”

R E C I T A L S:

     The Parties desire by their execution of this Agreement to evidence their understanding, as
more fully set forth in Article II, Article III and Article IV of this Agreement, with respect to
certain non-competition and business opportunity, indemnification and reimbursement obligations of
the Parties.

     In consideration of the premises and the covenants, conditions, and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I

Definitions

     1.1 Definitions. (a) Capitalized terms used herein but not defined shall have the meanings
given them in the MLP Agreement.

     (b) As used in this Agreement, the following terms shall have the respective meanings set
forth below:

     “Agreement” means this Omnibus Agreement, as it may be amended, modified or supplemented from
time to time in accordance with the terms hereof.

     “Change of Control” means, with respect to any Person (the “Applicable Person”), any of the
following events: (i) any sale, lease, exchange or other transfer (in one transaction or a series
of related transactions) of all or substantially all of the Applicable Person’s assets to any other
Person, unless immediately following such sale, lease, exchange or other transfer such assets are
owned, directly or indirectly, by the Applicable Person; (ii) the dissolution or liquidation of the
Applicable Person; (iii) the consolidation or merger of the Applicable Person with or into another
Person pursuant to a transaction in which the outstanding Voting Securities of the Applicable
Person are changed into or exchanged for cash, securities or other property, other than any such
transaction where (a) the outstanding Voting Securities of the Applicable Person are changed into
or exchanged for Voting Securities of the surviving Person or its parent and (b) the holders of the
Voting Securities of the Applicable Person immediately prior to such transaction own, directly or
indirectly, not less than a majority of the outstanding Voting Securities of the surviving Person
or its parent immediately after such transaction; and (iv) a “person” or “group” (within the
meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the then
outstanding Voting Securities of the Applicable Person, except (a) Quicksilver and

 

 

any affiliates of Quicksilver and (b) in a merger or consolidation which would not constitute
a Change of Control under clause (iii) above.

     “Closing Date” means the date of the closing of the initial public offering of Common Units.

     “Commencement Notice” is defined in Section 2.3(a).

     “Construction Costs” means all costs associated with developing, engineering, designing,
building, financing and conducting completion testing of Retained Assets and/or Subject Assets,
including, without limitation, any costs to acquire related real property or necessary rights of
way and any internal costs incurred to compensate employees for time spent on development,
engineering, designing, building, financing or testing Retained Assets and/or Subject Assets.

     “Construction Offer” is defined in Section 2.3(c).

     “Covered Environmental Losses” means all Environmental Losses by reason of or arising out of
any violation, event, circumstance, action, omission or condition which occurred before the Closing
Date.

     “Environmental Losses” means all environmental Losses, (including, without limitation, costs
and expenses of any Environmental Activity) of any and every kind or character, by reason of or
arising out of:

     (i) any violation or correction of violation of any Environmental Laws;

     (ii) any Environmental Activity required pursuant to Environmental Laws to address a Release
of Hazardous Substances; or

     (iii) any event, omission or condition associated with ownership or operation of the MLP
Assets (including, without limitation, the exposure to or presence of Hazardous Substances on,
under, about or migrating to or from the MLP Assets or the exposure to or Release of Hazardous
Substances arising out of operation of the MLP Assets at non-MLP Asset locations), including,
without limitation, (A) the cost and expense of any Environmental Activity, and (B) the cost and
expense for any environmental or toxic tort pre-trial, trial or appellate legal or litigation
support work.

     “Environmental Activity” shall mean any investigation, study, assessment, evaluation,
sampling, testing, monitoring, containment, removal, disposal, closure, corrective action,
remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup or abatement that is required or
necessary under any applicable Environmental Law, including, without limitation, institutional or
engineering controls or participation in a governmental voluntary cleanup program to conduct
voluntary investigatory and remedial actions for the clean-up, removal or remediation of Hazardous
Substances that exceed actionable levels established pursuant to Environmental Laws, or
participation in a supplemental environmental project in partial or whole mitigation of a fine or
penalty.

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     “Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations,
orders, judgments, ordinances, codes, injunctions, decrees, Environmental Permits and other legally
enforceable requirements and rules of common law relating to (a) pollution or protection of the
environment or natural resources, (b) any Release or threatened Release of, or any exposure of any
Person or property to, any Hazardous Substances or (c) the generation, manufacture, processing,
distribution, use, treatment, storage, transport or handling of any Hazardous Substances;
including, without limitation, the federal Comprehensive Environmental Response, Compensation and
Liability Act, the Superfund Amendments and Reauthorization Act, the Resource Conservation and
Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act, the Toxic
Substances Control Act, the Oil Pollution Act of 1990, the Federal Hazardous Materials
Transportation Law, the Marine Mammal Protection Act, the Endangered Species Act, the National
Environmental Policy Act and other environmental conservation and protection laws, each as amended
through the Closing Date.

     “Environmental Permit” means any permit, approval, identification number, license,
registration, consent, exemption, variance or other authorization required under or issued pursuant
to any applicable Environmental Law.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Gathering and Processing Agreement” shall mean the Fifth Amended and Restated Cowtown Gas
Facilities Gas Gathering and Processing Agreement, dated as of the Closing Date, among Quicksilver,
Cowtown Pipeline Partners L.P. and Cowtown Gas Processing Partners L.P., as such agreement may be
amended or restated and in effect at the time a determination is being made thereunder pursuant to
this Agreement.

     “Gathering System” shall have the meaning assigned to such term in the Gathering and
Processing Agreement.

     “Gathering System Expansion” is defined in Section 2.2(d).

     “General Partner” has the meaning given such term in the preamble to this Agreement.

     “Hazardous Substance” means (a) any substance that is designated, defined or classified under
any Environmental Law as a hazardous waste, solid waste, hazardous material, pollutant, contaminant
or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under
any Environmental Law, including, without limitation, any hazardous substance as defined under the
Comprehensive Environmental Response, Compensation and Liability Act, as amended, (b) oil as
defined in the Oil Pollution Act of 1990, as amended, including, without limitation, oil, gasoline,
natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other refined petroleum
hydrocarbons and petroleum products and (c) radioactive materials, asbestos containing materials or
polychlorinated biphenyls.

     “Indemnified Party” means each Partnership Group Member in their capacity as the parties
entitled to indemnification in accordance with Article III.

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     “Indemnifying Party” means the General Partner and Quicksilver, collectively in their capacity
as the parties from whom indemnification may be required in accordance with Article III.

     “Independent Expert” is defined in Section 2.3(c)(iv).

     “Losses” means any losses, damages, liabilities, claims, demands, causes of action, judgments,
settlements, fines, penalties, costs and expenses (including, without limitation, court costs and
reasonable attorney’s and experts’ fees) of any and every kind or character.

     “MLP” has the meaning given such term in the introduction to this Agreement.

     “MLP Agreement” means the First Amended and Restated Agreement of Limited Partnership of the
MLP, dated as of the Closing Date, as such agreement is in effect on the Closing Date, to which
reference is hereby made for all purposes of this Agreement. An amendment or modification to the
MLP Agreement subsequent to the Closing Date shall be given effect for the purposes of this
Agreement only if it has received the approval of the Conflicts Committee that would be required,
if any, pursuant to Section 5.6 hereof if such amendment or modification were an amendment or
modification of this Agreement.

     “MLP Assets” means the pipelines, processing plants or related equipment or assets, or
portions thereof, conveyed, contributed or otherwise transferred or intended to be conveyed,
contributed or otherwise transferred to any member of the Partnership Group, or owned by, leased by
or necessary for the operation of the business, properties or assets of any member of the
Partnership Group, prior to or as of the Closing Date.

     “Offer” is defined in Section 2.3(b).

     “Organizational Documents” means certificates of incorporation, by-laws, certificates of
formation, limited liability company operating agreements, certificates of limited partnership or
limited partnership agreements or other formation or governing documents of a particular entity.

     “Other Construction Terms” is defined in Section 2.3(c)(i).

     “Other Notice Terms” is defined in Section 2.3(a).

     “Partnership Entities” means the General Partner and each member of the Partnership Group.

     “Partnership Group Member” means any member of the Partnership Group.

     “Party” or “Parties” have the meaning given such terms in the introduction to this Agreement.

     “Person” means an individual, corporation, partnership, joint venture, trust, limited
liability company, unincorporated organization or any other entity.

     “Quicksilver” has the meaning given such term in the preamble to this Agreement.

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     “Quicksilver Counties” means the following counties in the State of Texas: Hood, Somervell,
Johnson, Tarrant, Hill, Parker, Bosque and Erath.

     “Quicksilver Entities” means Quicksilver and any other Person controlled by Quicksilver other
than the Partnership Entities. For purposes of this definition, “control” means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of
a Person, whether through ownership of Voting Securities, by contract or otherwise.

     “Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting,
discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping or
disposing into the environment.

     “Restricted Businesses” is defined in Section 2.1.

     “Retained Asset” and “Retained Assets” are defined in Section 2.2(b).

     “Retained Asset Election Notice” is defined in Section 2.3(a).

     “Retained Asset Valuation Expert” is defined in Section 2.3(a)(iv).

     “Services” is defined in Section 4.1(a).

     “Subject Assets” means any assets or group of related assets that are located in the
Quicksilver Counties and that are related to the Restricted Businesses, but excluding the Retained
Assets.

     “Subject Assets Valuation Expert” is defined in Section 2.3(b).

     “Voting Securities” means securities of any class of a Person entitling the holders thereof to
vote in the election of, or to appoint, members of the board of directors or other similar
governing body of the Person.

ARTICLE II

Non-competition and Business Opportunities

     2.1 Restricted Businesses. Except as permitted by Section 2.2, each Quicksilver Entity shall
be prohibited from engaging in, whether by acquisition, construction or otherwise, any of the
following businesses (the “Restricted Businesses”): the gathering, treating, processing,
fractionating, transportation or storage of natural gas in the Quicksilver Counties, or the
transportation or storage of natural gas liquids in the Quicksilver Counties, and constructing,
buying or selling any assets related to the foregoing businesses.

     2.2 Permitted Exceptions. Notwithstanding any provisions of Section 2.1 to the contrary, the
Quicksilver Entities may engage in the following activities under the following circumstances:

          (a) any business that (i) is primarily related to the exploration for and production of oil or
natural gas, the sale and marketing of oil and natural gas derived from such

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exploration and production activities, or the sale and marketing of natural gas liquids or
(ii) is otherwise not a Restricted Business;

          (b) the construction or completion of construction, and the operation, of gathering lines
listed on Schedule A hereto (which will be subject to the MLP’s rights and obligations set
forth in Section 2.3(a) of this Agreement) (such assets referred to individually herein as a
“Retained Asset”, and collectively as the “Retained Assets”);

          (c) the ownership and/or operation of any Subject Assets acquired by a Quicksilver Entity
after the Closing Date; provided, that the MLP has been offered the opportunity to purchase the
Subject Assets in accordance with Section 2.3(b) and the General Partner (with the concurrence of
the Conflicts Committee) has elected not to purchase the Subject Assets; provided, further, that
(i) prior to the offer being made to the MLP and (ii) during the pendency of the procedures
described in Section 2.3(b), the applicable Quicksilver Entity or Quicksilver Entities shall be
entitled to own and operate the Subject Assets;

          (d) the construction, ownership and/or operation of any Subject Assets constructed by a
Quicksilver Entity after the Closing Date (including, without limitation, any Gathering System
expansion (“Gathering System Expansion”) that the MLP or any Partnership Group Member declines to
construct and that Quicksilver elects to construct or cause to be constructed in accordance with
Section 4.4 of the Gathering and Processing Agreement); provided, that the MLP shall have
the rights with respect to any Gathering System Expansion specified in Section 4.4 of the
Gathering and Processing Agreement;

          (e) any other Restricted Business that was engaged in by a Quicksilver Entity on the date of
this Agreement; provided, however, that any future acquisitions or opportunities related to such
Restricted Business shall be subject to the procedures set forth in Section 2.3; and

          (f) any Restricted Business conducted by a Quicksilver Entity with the approval of the
Conflicts Committee.

     2.3 Procedures.

          (a) Notwithstanding any other provision herein to the contrary, the General Partner shall be
obligated to cause a Partnership Group Member to elect, not later than two years after receipt by
the General Partner of the Commencement Notice (as defined below) with respect to a particular
Retained Asset, to purchase such Retained Asset for a purchase price equal to the fair market value
thereof, such purchase to be effected in accordance with the procedures set forth below in this
Section 2.3(a) (or if such an election is not made by the second anniversary of the receipt of the
Commencement Notice, it will be deemed made in accordance with Section 2.3(a)(ii) below).
Following the commencement of commercial service with respect to any Retained Asset but prior to
the purchase of such Retained Asset by a Partnership Group Member pursuant to this Section 2.3(a),
the applicable Quicksilver Entity will pay to the applicable Partnership Group Member a fee for
operating such Retained Asset.

     (i) Not later than 60 days after a Quicksilver Entity completes construction of a
Retained Asset and such Retained Asset commences commercial service, such Quicksilver Entity
shall notify the General Partner in writing of such commencement (the

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“Commencement Notice”). The Commencement Notice shall (w) set forth the Quicksilver
Entity’s good faith estimate of the actual Construction Costs for such Retained Asset, (x)
include an offer to sell such Retained Asset to a Partnership Group Member to be designated
by the General Partner at the fair market value thereof determined as provided in Section
2.3(a)(iii) or Section 2.3(a)(iv), (y) include any other proposed terms relating to the
purchase of such Retained Asset, and, (z) if the Quicksilver Entity desires to utilize such
Retained Asset after the purchase of such Retained Asset by a Partnership Group Member in
accordance with this Section 2.3(a), include commercially reasonable terms on which the
Partnership Group will provide services to such Quicksilver Entity to enable it to so
utilize such Retained Asset (clauses (y) and (z) herein are collectively referred to as the
“Other Notice Terms”).

     (ii) The General Partner shall notify the applicable Quicksilver Entity, which notice
shall be in writing, of the exercise by the General Partner of its election to purchase such
Retained Asset (such notice, the “Retained Asset Election Notice”), and if the General
Partner fails to furnish such a Retained Asset Election Notice to the applicable Quicksilver
Entity on or before the second anniversary of the General Partner’s receipt of a
Commencement Notice, the General Partner shall be deemed to have delivered, and the
applicable Quicksilver Entity to have received, a Retained Asset Election Notice on such
second anniversary.

     (iii) In the event that the applicable Quicksilver Entity and the General Partner (with
the concurrence of the Conflicts Committee) within 60 days after the receipt or deemed
receipt by the applicable Quicksilver Entity of the Retained Asset Election Notice are able
to agree on the fair market value of the Retained Asset that is subject to the Commencement
Notice and the Other Notice Terms, a Partnership Group Member shall purchase the Retained
Asset for the agreed upon fair market value as soon as commercially practicable after such
agreement has been reached and, if applicable, enter into an agreement with the applicable
Quicksilver Entity to provide services in a manner consistent with the Commencement Notice.

     (iv) In the event that the applicable Quicksilver Entity and the General Partner (with
the concurrence of the Conflicts Committee) are unable to agree within 60 days after the
receipt by the applicable Quicksilver Entity of the Retained Asset Election Notice on the
fair market value of the Retained Asset that is subject to the Commencement Notice, the
applicable Quicksilver Entity and the General Partner will engage a mutually agreed upon
independent investment banking firm or other independent Person that is an expert in valuing
midstream energy assets such as the Retained Asset that is subject to the Commencement
Notice (“Retained Asset Valuation Expert”) to determine the fair market value of such
Retained Asset. Such Retained Asset Valuation Expert will determine the fair market value
of such Retained Asset within 30 days of its engagement and furnish the applicable
Quicksilver Entity and the General Partner its determination, which determination shall be a
final and binding determination of the fair market value to be paid by the Partnership Group
Member for the Retained Asset. The fees of the Retained Asset Valuation Expert will be
split equally between Quicksilver and the MLP.

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     (v) If the applicable Quicksilver Entity and the General Partner are unable to agree
within 60 days after the receipt by the applicable Quicksilver Entity of the Retained Asset
Election Notice on all of the Other Notice Terms, the applicable Quicksilver Entity and the
General Partner will obtain a good faith proposal from a mutually agreed upon third party
engaged in the business to which such Other Notice Terms relate in order to determine the
Other Notice Terms on which the General Partner and the applicable Quicksilver Entity are
unable to agree. Such third party will submit a good faith proposal regarding the Other
Notice Terms on which the General Partner and the applicable Quicksilver Entity are unable
to agree within 30 days of its engagement and furnish the applicable Quicksilver Entity and
the General Partner its proposal, which determination shall be a final and binding
determination of the Other Notice Terms. The fees of the third party will be split equally
between the applicable Quicksilver Entity and the Partnership Group.

     (vi) Once the fair market value and the Other Notice Terms have been finally determined
pursuant to sub-clauses (iii), (iv) or (v) above, the General Partner will have the
obligation to cause a Partnership Group Member to purchase the Retained Assets that are the
subject of the Retained Asset Election Notice as modified by the determination of the
Retained Asset Valuation Expert and/or the third party submitting a proposal as soon as
commercially practicable after such determination and, if applicable, enter into an
agreement with the applicable Quicksilver Entity to provide services in a manner consistent
with the Commencement Notice, as modified by the determination of the third party submitting
a proposal, if applicable.

          (b) In the event that a Quicksilver Entity becomes aware of an opportunity to make an
acquisition that includes Subject Assets, then the applicable Quicksilver Entity may make such
acquisition without first offering the opportunity to the MLP as long as it complies with the
following procedures:

     (i) Within 120 days after the consummation of such an acquisition, the applicable
Quicksilver Entity shall notify the General Partner in writing of such acquisition. Such
notice shall include an offer (the “Offer”) by the applicable Quicksilver Entity to sell the
Subject Assets to the MLP, accompanied by a proposed definitive agreement to effectuate the
purchase and sale of the Subject Assets (the “Purchase Agreement”). The Purchase Agreement
shall set forth the material terms of the Offer, including the proposed purchase price, any
liabilities to be assumed by the Partnership Group and the other material terms of the
Offer; provided, that the representations and warranties regarding the Subject Assets shall
be substantially consistent with the terms contained in the definitive purchase agreement
pursuant to which the applicable Quicksilver Entity acquired the Subject Assets, subject to
such adjustments as the applicable Quicksilver Entity reasonably determines are necessary to
reflect the differences in the transaction. In addition, if any Quicksilver Entity desires
to utilize the Subject Assets, the Offer may include commercially reasonable terms on which
the Partnership Group will provide services to such Quicksilver Entity to enable it to
utilize the Subject Assets.

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     (ii) As soon as practicable after the Offer is made, the applicable Quicksilver Entity
will deliver to the MLP all information prepared by or on behalf of or in the possession of
any Quicksilver Entity related to the Subject Assets and reasonably requested by the MLP.
As soon as practicable, but in any event within 60 days after receipt of the Offer
accompanied by the form of Purchase Agreement, the General Partner shall notify the
Quicksilver Entity in writing that either: (x) the General Partner, on behalf of the
Partnership Group, has elected (with the concurrence of the Conflicts Committee) not to
cause a Partnership Group Member to purchase the Subject Assets, in which event the
Quicksilver Entities shall be forever free to continue to own or operate such Subject
Assets, or (y) the General Partner, on behalf of the Partnership Group, has elected (with
the concurrence of the Conflicts Committee) to cause a Partnership Group Member to purchase
the Subject Assets, in which event sub-clauses (iii) and (iv) shall apply.

     (iii) In the event that the applicable Quicksilver Entity and the General Partner (with
the concurrence of the Conflicts Committee) within 60 days after receipt by the General
Partner of the Offer are able to agree on the fair market value of the Subject Assets that
are subject to the Offer accompanied by the form of Purchase Agreement and the other terms
of the Offer including, without limitation, the terms, if any, on which the Partnership
Group will provide services to any Quicksilver Entity to enable it to utilize the Subject
Assets, a Partnership Group Member shall purchase the Subject Assets for the agreed upon
fair market value as soon as commercially practicable after such agreement has been reached
and, if applicable, enter into an agreement with any Quicksilver Entity to provide services
in a manner consistent with the Offer.

     (iv) In the event that the applicable Quicksilver Entity and the General Partner (with
the concurrence of the Conflicts Committee) are unable to agree within 60 days after receipt
by the General Partner of the Offer on the fair market value of the Subject Assets that are
subject to the Offer or the other terms of the Offer including, if applicable, the terms on
which the Partnership Group will provide services to any Quicksilver Entity to enable it to
utilize the Subject Assets, the applicable Quicksilver Entity and the General Partner will
engage a mutually agreed upon independent investment banking firm or other independent
Person that is an expert in valuing midstream assets like the Subject Assets (such firm or
Person, the “Subject Assets Valuation Expert”) to determine the fair market value of the
Subject Assets and/or the other terms on which the General Partner and the Quicksilver
Entity are unable to agree. Such Subject Assets Valuation Expert will determine the fair
market value of the Subject Assets and/or the other terms on which the General Partner and
the applicable Quicksilver Entity are unable to agree within 30 days of its engagement and
furnish the applicable Quicksilver Entity and the General Partner its determination. The
fees of the Subject Assets Valuation Expert will be split equally between Quicksilver and
the MLP. Once the Subject Assets Valuation Expert has submitted its determination of the
fair market value of the Subject Assets and/or the other terms on which the Partnership
Group and the applicable Quicksilver Entity are unable to agree, the General Partner will
have the right, but not the obligation, subject to the concurrence of the Conflicts
Committee, to cause a Partnership Group Member to purchase the Subject Assets pursuant to
the Offer as modified by the determination of the Subject Assets Valuation Expert. The
Partnership Group Member

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will provide written notice of its decision to the Quicksilver Entity within 30 days
after the Subject Assets Valuation Expert has submitted its determination. Failure to
provide such notice within such 30-day period shall be deemed to constitute a decision not
to purchase the Subject Assets. If the General Partner elects to cause a Partnership Group
Member to purchase the Subject Assets, then the Partnership Group Member shall purchase the
Subject Assets pursuant to the Offer as modified by the determination of the Valuation
Expert as soon as commercially practicable after such determination and, if applicable,
enter into an agreement with the applicable Quicksilver Entity to provide services in a
manner consistent with the Offer, as modified by the determination of the Subject Assets
Valuation Expert, if applicable.

          (c) In the event that a Quicksilver Entity determines to construct Subject Assets (other than
a Gathering System Expansion, which shall be subject to the rights of the Partnership Group
pursuant to Section 4.4 of the Gathering and Processing Agreement), then the applicable
Quicksilver Entity may construct or cause to be constructed such Subject Assets without first
offering the opportunity to construct and own same to the MLP if such Quicksilver Entity complies
with the following procedures:

	 	(i)	 	Within 120 days after the completion of construction and the
commencement of commercial service of such Subject Assets by a Quicksilver Entity,
the applicable Quicksilver Entity shall notify the General Partner in writing of
such construction and offer the Partnership Group the opportunity to purchase such
Subject Assets in accordance with this Section 2.3(c) (the “Construction Offer”).
The Construction Offer shall set forth the Quicksilver Entity’s good faith estimate
of (A) the actual Construction Costs for the Subject Assets incurred by the
applicable Quicksilver Entity, and (B) the fair market value of such Subject
Assets, which fair market value shall constitute the proposed purchase price for
the Subject Assets, together with the other proposed terms relating to the purchase
of the Subject Assets, and, if any Quicksilver Entity desires to utilize the
Subject Assets, the Construction Offer may also include commercially reasonable
terms on which the Partnership Group will provide services to such Quicksilver
Entity to enable it to utilize the Subject Assets (collectively, the “Other
Construction Terms”).
	 
	 	(ii)	 	As soon as practicable, but in any event within 60 days after receipt
of such written notification, the General Partner shall notify the applicable
Quicksilver Entity in writing that either (x) the General Partner, on behalf of the
Partnership Group, has elected (with the concurrence of the Conflicts Committee)
not to cause a Partnership Group Member to purchase the Subject Assets, in which
event the Quicksilver Entities shall be forever free to continue to own or operate
such Subject Assets, or (y) the General Partner, on behalf of the Partnership
Group, has elected (with the concurrence of the Conflicts Committee) to cause a
Partnership Group Member to purchase the Subject Assets, in which event the
following procedures shall apply:
	 
	 	(iii)	 	In the event that the applicable Quicksilver Entity and the General
Partner (with the concurrence of the Conflicts Committee) within 60 days after
receipt by the

10

 

	 	 	 	General Partner of the Construction Offer are able to agree on the fair market value
of the Subject Assets that are subject to the Construction Offer and the Other
Construction Terms of the Construction Offer, a Partnership Group Member shall
purchase the Subject Assets for the agreed upon fair market value as soon as
commercially practicable after such agreement has been reached and, if applicable,
enter into an agreement with the Quicksilver Entity to provide services in a manner
consistent with the Construction Offer.
	 
	 	(iv)	 	In the event that the applicable Quicksilver Entity and the General
Partner (with the concurrence of the Conflicts Committee) are unable to agree
within 60 days after receipt by the General Partner of the Construction Offer on
the fair market value of the Subject Assets that are subject to the Construction
Offer, the applicable Quicksilver Entity and the General Partner will engage a
mutually agreed upon independent investment banking firm or other independent
Person that is an expert in valuing midstream assets such as the Subject Assets
that are the subject of the Construction Offer (the “Independent Expert”), to
determine the fair market value of the Subject Assets. Such Independent Expert
will determine the fair market value of the Subject Assets within 30 days of its
engagement and furnish the applicable Quicksilver Entity and the General Partner
its determination, which determination shall be a final and binding determination
of the fair market value. The fees of the Independent Expert will be split equally
between Quicksilver and the MLP.
	 
	 	(v)	 	If the applicable Quicksilver Entity and the General Partner are unable
to agree within 60 days after receipt by the General Partner of the Construction
Offer on all of the Other Construction Terms, the applicable Quicksilver Entity and
the General Partner will obtain a good faith proposal from a mutually agreed upon
third party engaged in the business to which such Other Construction Terms relate
in order to determine the Other Construction Terms on which the General Partner and
the applicable Quicksilver Entity are unable to agree. Such third party will
submit a good faith proposal regarding the Other Construction Terms on which the
General Partner and the applicable Quicksilver Entity are unable to agree within 30
days of its engagement and furnish the applicable Quicksilver Entity and the
General Partner its proposal, which determination shall be a final and binding
determination of the Other Construction Terms. The fees of the third party will be
split equally between the applicable Quicksilver Entity and the Partnership Group.
	 
	 	(vi)	 	Once the fair market value and the Other Construction Terms have been
finally determined pursuant to sub-clauses (iii), (iv) or (v) above, the General
Partner will have the right, but not the obligation, subject to the concurrence of
the Conflicts Committee, to cause a Partnership Group Member to purchase the
Subject Assets pursuant to the Construction Offer as modified by the determination
of the Independent Expert and/or the third party submitting a proposal, as
applicable. The Partnership Group Member will provide written notice of its
decision to the applicable Quicksilver Entity within 30 days after the later of the
date on which the Independent Expert and/or the third party submitting a proposal,
as applicable,

11

 

	 	 	 	has submitted its determination. Failure to provide such notice within such 30-day
period shall be deemed to constitute a decision not to purchase the Subject Assets.
If the General Partner elects to cause a Partnership Group Member to purchase the
Subject Assets, then the Partnership Group Member shall purchase the Subject Assets
pursuant to the Construction Offer as modified by the determination of the
Independent Expert and/or the third party submitting a proposal as soon as
commercially practicable after such determination and, if applicable, enter into an
agreement with the applicable Quicksilver Entity to provide services in a manner
consistent with the Construction Offer, as modified by the determination of the
third party submitting a proposal, if applicable.

          (d) The procedures set forth in Section 2.3(c) shall not apply to any Gathering System
Expansion, which shall be subject to the rights and obligations set forth in Section 4.4 of
the Gathering and Processing Agreement; provided, however, that any determination by any
Partnership Group Member not to exercise its right to acquire a Gathering System Expansion or to
permit such right to expire unexercised shall be subject to the concurrence of the Conflicts
Committee.

     2.4 Scope of Prohibition. Except as provided in this Article II and the MLP Agreement, each
Quicksilver Entity shall be free to engage in any business activity, including those that may be in
direct competition with any Partnership Group Member.

     2.5 Enforcement. Each Quicksilver Entity agrees and acknowledges that the Partnership Group
does not have any adequate remedy at law for the breach by the Quicksilver Entities of the
covenants and agreements set forth in this Article II would result in irreparable injury to the
Partnership Group. Each Quicksilver Entity further agrees and acknowledges that any Partnership
Group Member may, in addition to the other remedies which may be available to the Partnership
Group, file a suit in equity to enjoin any of the Quicksilver Entities from such breach, and
consents to the issuance of injunctive relief under this Agreement.

     2.6 Termination. This Article II shall terminate on the first to occur of the following: (a)
the tenth anniversary of the Closing Date and (b) at such time as a Quicksilver Entity ceases to
own or control a majority of the issued and outstanding voting securities of the General Partner.

ARTICLE III

Indemnification

     3.1 Environmental Indemnification. Subject to the provisions of Section 3.3 and Section 3.4,
the Indemnifying Party shall indemnify, defend and hold harmless the Indemnified Party from and
against any Covered Environmental Losses suffered or incurred by the Indemnified Party and arising
from or relating to the MLP Assets for a period of two (2) years from the Closing Date.

     3.2 Additional Indemnification. Subject to the provisions of Section 3.3 and Section 3.4, the
Indemnifying Party shall indemnify, defend and hold harmless the Indemnified

12

 

Party from and against any Losses suffered or incurred by the Indemnified Party by reason of
or arising from:

          (a) the failure of the Partnership Group to be the owner of valid and indefeasible easement
rights, leasehold and/or fee ownership interests in and to the lands on which are located any MLP
Assets, and such failure renders the Partnership Group liable to a third party or unable to use or
operate the MLP Assets in substantially the same manner that the MLP Assets were used and operated
by the Quicksilver Entities immediately prior to the Closing Date;

          (b) the failure of the Partnership Group to have on the Closing Date any consent or
governmental permit necessary to allow (i) the transfer of any of the MLP Assets to the Partnership
Group on the Closing Date or (ii) the Partnership Group to use or operate the MLP Assets in
substantially the same manner that the MLP Assets were owned and operated by the Quicksilver
Entities immediately prior to the Closing Date;

          (c) all federal, state and local income tax liabilities attributable to the ownership or
operation of the MLP Assets prior to the Closing Date, including (i) any such income tax
liabilities of the Quicksilver Entities that may result from the consummation of the formation
transactions for the Partnership Entities and (ii) any income tax liabilities arising under
Treasury Regulation Section 1.1502-6 and any similar provision from state, local or foreign
applicable law, by contract, as successor, transferred or otherwise and which income tax is
attributable to having been a member of any consolidated, combined or unitary group prior to the
Closing Date;

          (d) the fire, personal injury and related personal and property damage arising from the
accident at the Cowtown Gas Processing Facility that occurred on May 25, 2007;

provided, however, that, (i) in the case of clauses (a) and (b) above, such indemnification
obligations shall survive for two (2) years from the Closing Date; (ii) in the case of clause (c)
above, such indemnification obligation shall survive until 12:01 a.m. of the first day after the
expiration of any applicable statute of limitations; and (iii) in the case of clause (d) above,
such indemnification obligation shall survive indefinitely.

     3.3 Limitations Regarding Indemnification.

          (a) Notwithstanding anything herein to the contrary, in no event shall the Indemnifying Party
have any indemnification obligations under this Agreement for claims made as a result of additions
to or modifications of Environmental Laws promulgated after the Closing Date.

          (b) Notwithstanding anything herein to the contrary, the liability of the Indemnifying Party
for any indemnification obligations under this Agreement will be subject to reduction for (i) any
insurance proceeds realized by the Indemnified Party with respect to the indemnified matter, net of
any premium that becomes due and payable as a result of such claim and (ii) any amounts recovered
by the Indemnified Party under contractual indemnities from third parties. The MLP hereby agrees
to use commercially reasonable efforts to realize any applicable insurance proceeds and amounts
recoverable under such contractual indemnities.

13

 

          (c) The liability of the Indemnifying Party for any indemnification obligations under this
Agreement will be reduced by any amounts reserved or accrued for such Losses on the consolidated
balance sheet of the Partnership Group as of December 31, 2006.

     3.4 Indemnification by the Partnership Group. In addition to and not in limitation of the
indemnification provided under the MLP Agreement, the Partnership Group shall indemnify, defend and
hold harmless the Quicksilver Entities from and against any Losses (excluding Environmental Losses)
suffered or incurred by the Quicksilver Entities by reason of or arising out of events and
conditions associated with the operation of the MLP Assets and occurring on or after the Closing
Date, unless in any such case indemnification would not be permitted under the MLP Agreement by
reason of one of the provisos contained in Section 7.7 of the MLP Agreement.

     3.5 Indemnification Procedures.

          (a) The Indemnified Party agrees that within thirty (30) days after it becomes aware of facts
giving rise to a claim for indemnification pursuant to this Article III, it will provide notice
thereof in writing to the Indemnifying Party specifying the nature of and specific basis for such
claim; provided, however, that the Indemnified Party shall not submit claims more frequently than
once a calendar quarter (or twice in the case of the last calendar quarter prior to the expiration
of the applicable indemnity coverage under this Agreement). Notwithstanding the foregoing, the
Indemnified Party’s failure to provide notice under this Section 3.5 will not relieve the
Indemnifying Party from liability hereunder with respect to such matter except in the event and
only to the extent that the Indemnifying Party is materially prejudiced by such failure or delay.

          (b) The Indemnifying Party shall have the right to control all aspects of the defense of (and
any counterclaims with respect to) any claims brought against the Indemnified Party that are
covered by the indemnification set forth in this Article III, including, without limitation, the
selection of counsel (provided that if such claim involves Covered Environmental Losses, such
counsel shall be reasonably acceptable to the Indemnified Party), determination of whether to
appeal any decision of any court and the settling of any such matter or any issues relating
thereto; provided, however, that no such settlement shall be entered into without the consent
(which consent shall not be unreasonably withheld, conditioned or delayed) of the Indemnified Party
unless it includes a full release of the Indemnified Party from such matter or issues, as the case
may be.

          (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect
to all aspects of the defense of any claims covered by the indemnification set forth in Article
III, including, without limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may receive, permitting
the names of the Indemnified Party to be utilized in connection with such defense, the making
available to the Indemnifying Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party considers relevant to such defense and the making available to
the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in
connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact
thereof on the operations of the Indemnified Party and further agrees to

14

 

maintain the confidentiality of all files, records and other information furnished by the
Indemnified Party pursuant to this Section 3.5. In no event shall the obligation of the
Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately
preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and
pay for counsel in connection with the defense of any claims covered by the indemnification set
forth in this Article III; provided, however, that the Indemnified Party may, at its own option,
cost and expense, hire and pay for counsel in connection with any such defense. The Indemnifying
Party agrees to keep any such counsel hired by the Indemnified Party reasonably informed as to the
status of any such defense, but the Indemnifying Party shall have the right to retain sole control
over such defense.

          (d) The indemnification obligations under this Article III shall continue with respect to any
claim for indemnification pursuant to this Article III that is pending as of the end of the
applicable survival period notwithstanding the expiration of such survival period.

ARTICLE IV

Reimbursement Obligations

     4.1 Reimbursement for Operating and General and Administrative Expenses.

          (a) Quicksilver hereby agrees to continue to provide, or cause to be provided, the Partnership
Group with general and administrative services, such as legal, accounting, treasury, cash
management, insurance administration and claims processing, risk management, health, safety and
environmental, information technology, human resources, credit, payroll, internal audit, taxes and
engineering, that are substantially identical in nature and quality to the services of such type
previously provided by Quicksilver in connection with its management and operation of the MLP
Assets during the two (2) year period prior to the Closing Date (collectively, the “Services”).

          (b) The Partnership Group hereby agrees to reimburse Quicksilver for all expenses incurred in
conjunction with the performance of the Services, including expenditures it incurs or payments it
makes on behalf of the Partnership Group in connection with the business and operations of the
Partnership Group, including, but not limited to, (i) salaries of all Quicksilver personnel
performing services on the Partnership Group’s behalf and the cost of employee benefits for such
personnel, (ii) public company expenses of the MLP, such as K–1 preparation, external audit,
internal audit, transfer agent and registrar, legal, printing, unitholder reports and other costs
and expenses, (iii) general and administrative expenses and (iv) salaries and benefits of executive
management of the General Partner who are employees of Quicksilver.

          (c) To the extent Quicksilver shall have charge or possession of any of the MLP Assets in
connection with the provision of the Services, Quicksilver shall separately maintain, and not
commingle, the MLP Assets with those of Quicksilver or any other Person.

     4.2 Reimbursement for Insurance. The Partnership Group hereby agrees to reimburse the
Quicksilver Entities for all expenses they incur or payments they make on behalf of the Partnership
Group for insurance coverage with respect to the MLP Assets.

15

 

ARTICLE V

Miscellaneous

     5.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and
governed by the laws of the State of Texas. Each Party hereby submits to the jurisdiction of the
state and federal courts in the State of Texas and to venue in Ft. Worth, Texas.

     5.2 Notice. All notices, requests or consents provided for or permitted to be given pursuant
to this Agreement must be in writing and must be given by depositing same in the United States
mail, addressed to the Person to be notified, postpaid, and registered or certified with return
receipt requested or by delivering such notice in person or by fax to such Party. Notice given by
personal delivery or mail shall be effective upon actual receipt. Notice given by fax shall be
effective upon actual receipt if received during the recipient’s normal business hours, or at the
beginning of the recipient’s next business day after receipt if not received during the recipient’s
normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent
to or made at the address set forth below or at such other address as such Party may stipulate to
the other Parties in the manner provided in this Section 5.2.

For notices to the Quicksilver Entities:

777 West Rosedale Street, Suite 300

Fort Worth, Texas 76104

Phone: (817) 665-5000

Fax: (817) 665-5004

Attention: Law Department

For notices to the Partnership Entities:

777 West Rosedale Street, Suite 300

Fort Worth, Texas 76104

Phone: (817) 665-5000

Fax: (817) 665-5004

Attention: Law Department

     5.3 Entire Agreement. This Agreement constitutes the entire agreement of the Parties relating
to the matters contained herein, superseding all prior contracts or agreements, whether oral or
written, relating to the matters contained herein.

     5.4 Termination. This Agreement, other than the provisions set forth in Article III hereof,
shall terminate upon a Change of Control of the General Partner or the MLP, other than any Change
of Control of the General Partner or the MLP that may be deemed to have occurred pursuant to clause
(iv) of the definition of Change of Control solely as a result of a Change of Control of
Quicksilver. Notwithstanding any other provision of this Agreement, if the General Partner is
removed as general partner of the MLP under circumstances where Cause does not exist and Common
Units held by the General Partner and its Affiliates are not voted in favor of such removal, this
Agreement may immediately thereupon be terminated by Quicksilver.

16

 

     5.5 Effect of Waiver or Consent. No waiver or consent, express or implied, by any Party to or
of any breach or default by any Person in the performance by such Person of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or
default in the performance by such Person of the same or any other obligations of such Person
hereunder. Failure on the part of a Party to complain of any act of any Person or to declare any
Person in default, irrespective of how long such failure continues, shall not constitute a waiver
by such Party of its rights hereunder until the applicable statute of limitations period has run.

     5.6 Amendment or Modification. This Agreement may be amended or modified from time to time
only by the written agreement of all the Parties; provided, however, that the MLP may not, without
the prior approval of the Conflicts Committee, agree to any amendment or modification of this
Agreement that, in the reasonable discretion of the General Partner, will have an adverse effect on
the holders of Common Units. Each such instrument shall be reduced to writing and shall be
designated on its face an “Amendment” or an “Addendum” to this Agreement.

     5.7 Assignment; Third Party Beneficiaries. No Party shall have the right to assign its rights
or obligations under this Agreement without the prior written consent of the other Parties. Each
of the Parties hereto specifically intends that each entity comprising the Quicksilver Entities and
the Partnership Entities, as applicable, whether or not a Party to this Agreement, shall be
entitled to assert rights and remedies hereunder as third-party beneficiaries hereto with respect
to those provisions of this Agreement affording a right, benefit or privilege to any such entity.

     5.8 Counterparts. This Agreement may be executed in any number of counterparts with the same
effect as if all signatory Parties had signed the same document. All counterparts shall be
construed together and shall constitute one and the same instrument.

     5.9 Severability. If any provision of this Agreement or the application thereof to any Person
or circumstance shall be held invalid or unenforceable to any extent, the remainder of this
Agreement and the application of such provision to other Persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by law.

     5.10 Gender, Parts, Articles and Sections. Whenever the context requires, the gender of all
words used in this Agreement shall include the masculine, feminine and neuter, and the number of
all words shall include the singular and plural. All references to Article numbers and Section
numbers refer to Articles and Sections of this Agreement.

     5.11 Further Assurances. In connection with this Agreement and all transactions contemplated
by this Agreement, each Party agrees to execute and deliver such additional documents and
instruments and to perform such additional acts as may be necessary or appropriate to effectuate,
carry out and perform all of the terms, provisions and conditions of this Agreement and all such
transactions.

     5.12 Withholding or Granting of Consent. Each Party may, with respect to any consent or
approval that it is entitled to grant pursuant to this Agreement, grant or withhold such

17

 

consent or approval in its sole and uncontrolled discretion, with or without cause, and
subject to such conditions as it shall deem appropriate.

     5.13 Laws and Regulations. Notwithstanding any provision of this Agreement to the contrary,
no Party shall be required to take any act, or fail to take any act, under this Agreement if the
effect thereof would be to cause such Party to be in violation of any applicable law, statute, rule
or regulation.

     5.14 Negation of Rights of Limited Partners, Assignees and Third Parties. Except as set forth
in Section 5.7, the provisions of this Agreement are enforceable solely by the Parties, and no
limited partner, member, or assignee of Quicksilver or the MLP or other Person shall have the
right, separate and apart from Quicksilver or the MLP, to enforce any provision of this Agreement
or to compel any Party to comply with the terms of this Agreement.

     5.15 No Recourse Against Officers or Directors. For the avoidance of doubt, the provisions of
this Agreement shall not give rise to any right of recourse against any officer or director of any
Quicksilver Entity or any Partnership Entity.

[Signature page follows]

18

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of,
the Closing Date.

	 	 	 	 	 
	 	QUICKSILVER GAS SERVICES LP

 	 
	 	By:  	QUICKSILVER GAS SERVICES GP LLC,
its general partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	  /s/      Philip Cook	 
	 	 	Name:  	Philip Cook 	 
	 	 	Title:  	Senior Vice President—Chief Financial Officer 	 
	 
	 	QUICKSILVER GAS SERVICES GP LLC

 	 
	 	By:  	  /s/      Philip Cook	 
	 	 	Name:  	Philip Cook 	 
	 	 	Title:  	Senior Vice President—Chief Financial Officer 	 
	 
	 	QUICKSILVER RESOURCES INC.

 	 
	 	By:  	  /s/      Philip Cook	 
	 	 	Name:  	Philip Cook 	 
	 	 	Title:  	Senior Vice President—Chief Financial Officer 	 
	 

 

 

SCHEDULE A

Retained Assets

Cauble #1H & #2H Lateral (Hood County)

ETC to 20’ N. Mainline Interco (Hood County)

Moe Lateral (Bosque County)

Moe Szyslak Lateral (Johnson County)

Hill County Dry System (Hill County)

Lake Arlington Dry System (Tarrant County)exv10w5

 

SERVICES AND SECONDMENT AGREEMENT

     This Services and Secondment Agreement (the “Agreement”), dated as of August 10, 2007
(the “Effective Date”), is entered into between QUICKSILVER RESOURCES INC., a Delaware
corporation (“Company”), and QUICKSILVER GAS SERVICES GP LLC, a Delaware limited liability
company (“MLP GP”), the general partner of Quicksilver Gas Services LP
(“Partnership”). Company and MLP GP are hereinafter each referred to as a “Party”
and collectively referred to as the “Parties.” The Partnership and the MLP GP are
sometimes collectively referred to as the “Partnership Entities.”

RECITALS:

     WHEREAS, Company will provide to MLP GP the services necessary to operate, manage and maintain
the Partnership’s approximately 120 mile natural gas gathering pipeline system located in the
southern portion of the Fort Worth Basin (the “Cowtown Pipeline”) and the Partnership’s
natural gas processing plant, consisting of a newly-constructed 125 MMcf/d natural gas processing
unit and a 75 MMcf/d natural gas processing unit, located in Hood County, Texas (the “Cowtown
Plant,” together with the Cowtown Pipeline and any subsequent additions to or expansions of the
Cowtown Pipeline or Cowtown Plant, the “Cowtown Assets”);

     WHEREAS, in connection with the provision of the services under this Agreement, Company
desires to second to MLP GP certain personnel employed or contracted by Company in connection with
the Cowtown Assets;

     NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Company and MLP GP hereby agree as follows:

ARTICLE 1

SECONDMENT

1.1 Seconded Employees.

     Subject to the terms of this Agreement, Company agrees to second to MLP GP, and MLP GP agrees
to accept the secondment of, those certain specifically identified individuals (each, a
“Seconded Employee” and collectively, the “Seconded Employees”) listed on
Exhibit A (the “Seconded Employee Schedule”) for the purpose of performing job
functions related to the Cowtown Assets (the “Secondment”). The Seconded Employees will
remain at all times employees of the Company but in addition, they will also be temporary employees
of MLP GP during the Period of Secondment and shall, at all times during the Period of Secondment,
work under the direction, supervision and control of MLP GP. The Company will retain the right to
hire or discharge the Seconded Employees but, subject to the provisions in Section 1.2, will not
have the right to terminate the Secondment to MLP GP or otherwise exercise direction, supervision
or control over the Seconded Employees. For each Seconded Employee, the “Period of
Secondment” shall be that period of time as set forth in Section 1.2. Seconded Employees shall
have no authority or apparent authority to act on behalf of Company during the Period of
Secondment. The Seconded Employee Schedule sets forth the names of the Seconded Employees

 

 

seconded by Company, the job functions of the Seconded Employees, and the starting date for
the Period of Secondment for each Seconded Employee. Individuals may be added or removed from the
Seconded Employee Schedule from time to time by the execution by the Parties of a completed
“Addition/Removal/Change of Responsibility of Seconded Employee” form, the form of which is
attached to this Agreement as Exhibit B, which will be fully binding on the Parties for all
purposes under this Agreement. Those rights and obligations of the Parties under this Agreement
that relate to individuals that were on the Seconded Employee Schedule but then later removed from
the Seconded Employee Schedule, which rights and obligations accrued before the removal of such
individual, will survive the removal of such individual from the Seconded Employee Schedule to the
extent necessary to enforce such rights and obligations.

1.2 Period of Secondment.

     Company will second to MLP GP each Seconded Employee on the start date set forth on the
Seconded Employee Schedule and continue to second, during the period (and only during the period)
that the Seconded Employee is performing services for MLP GP, until the earliest of:

     (a) the end of the term of this Agreement;

     (b) the end date, if any, set forth for the Seconded Employee on the Seconded Employee
Schedule (or another end date for such Seconded Employee as mutually agreed in writing by the
Parties) (the “End Date”);

     (c) a withdrawal, departure, resignation or termination of such Seconded Employee under
Section 1.3;

     (d) the date on which Quicksilver Gas Holdings LLC ceases to own a majority of the issued and
outstanding voting common equity capital of MLP GP and MLP GP has entered into satisfactory
arrangements which in good faith MLP GP determines will provide MLP GP with suitable qualified and
experienced full-time or seconded employees necessary to operate, manage and maintain the Cowtown
Assets; and

     (e) a termination of Secondment for such Seconded Employee under Section 1.4.

     At the end of the Period of Secondment for any Seconded Employee, such Seconded Employee will
no longer be subject to the direction of MLP GP with regard to the Seconded Employee’s day-to-day
activities.

1.3 Withdrawal, Departure or Resignation.

     Company will use reasonable efforts to prevent any early withdrawal, departure or resignation
of any Seconded Employee prior to the End Date for such Seconded Employee’s Period of Secondment.
If any Seconded Employee tenders his resignation to Company as an employee of Company, Company will
promptly notify MLP GP. During the Period of Secondment for any Seconded Employee, Company will not
voluntarily withdraw or terminate any Seconded Employee except with the written consent of MLP GP
(which may be through the execution of a completed Addition/Removal/Change of Responsibility of
Seconded Employee

-2-

 

form), such consent not to be unreasonably withheld. Company will indemnify, defend and hold
harmless MLP GP, its directors, officers and employees against any and all costs, expenses
(including reasonable attorneys’ fees), claims, demands, losses, liabilities, obligations, actions,
lawsuits and other proceedings, judgments and awards (each, a “Loss” and collectively, the
“Losses”) arising out of or in any way connected with or related to the termination of
employment of the Seconded Employee by Company without the consent of the MLP GP EVEN THOUGH SUCH
LOSS MAY BE CAUSED IN PART BY THE NEGLIGENCE OF ONE OR MORE OF THE PARTNERSHIP ENTITIES, except to
the extent that such Losses (i) arise solely out of or result solely from the negligence, gross
negligence or willful misconduct of any of the Partnership Entities, or (ii) arise in connection
with the termination of a Seconded Employee for cause. Upon the termination of employment, the
Seconded Employee will cease performing services for MLP GP.

1.4 Termination of Secondment.

     MLP GP will have the right to terminate the Secondment to MLP GP of any Seconded Employee for
any reason at any time. Subject to Section 1.2, Company will not have the right to terminate the
Secondment to MLP GP of any Seconded Employee. Upon the termination of any Seconded Employee’s
Period of Secondment, Company will be solely liable for any costs or expenses associated with the
termination of the Secondment, except as otherwise specifically set forth in this Agreement.
Company will indemnify, defend and hold harmless MLP GP, its directors, officers and employees
against all Losses arising out of or in any way connected with the termination of Secondment of the
Seconded Employee by MLP GP EVEN THOUGH SUCH LOSS MAY BE CAUSED IN PART BY THE NEGLIGENCE OF ONE OR
MORE OF THE PARTNERSHIP ENTITIES, except to the extent that such Losses arise solely out of or
result solely from the negligence, gross negligence or willful misconduct of any of the Partnership
Entities. Upon the termination of a Secondment, the Seconded Employee will cease performing
services for MLP GP. At no time will MLP GP have the right to terminate the employment with the
Company of the Seconded Employees.

1.5 Supervision.

     During the Period of Secondment, MLP GP shall:

     (a) be ultimately and fully responsible for the daily work assignments of the Seconded
Employee (and with respect to Seconded Employees that also provide services to the Company in
connection with its operations (“Shared Seconded Employees”) during those times that the
Shared Seconded Employees are performing services for MLP GP hereunder), including supervision of
their day-to-day work activities and performance consistent with the purposes stated in Section 1.1
and the job functions set forth in the Seconded Employee Schedule;

     (b) set the hours of work and the holidays and vacation schedules (other than with respect to
Shared Seconded Employees, as to which MLP GP and Company shall jointly determine) for the Seconded
Employee; and

     (c) have the right to determine training which will be received by the Seconded Employee.

-3-

 

     In the course and scope of performing any Seconded Employee’s job functions, the Seconded
Employee will be integrated into the organization of MLP GP, will report into MLP GP’s management
structure, and will be under the direct management and supervision of MLP GP. MLP GP shall
designate one of its officers who does not also provide services to the Company in connection with
the Company’s operations to be responsible for the supervisory function set forth in this Section
1.5 on behalf of MLP GP.

1.6 Seconded Employee Qualifications; Approval.

     Company will provide such suitably qualified and experienced Seconded Employees as Company is
able to make available to MLP GP, and MLP GP will have the right to approve or reject such Seconded
Employee.

ARTICLE 2

SECONDMENT SERVICES

2.1 Secondment Services.

     Company shall second Seconded Employees to MLP GP to provide MLP GP with those services
necessary to operate, manage and maintain the Cowtown Assets (the “Secondment Services”).

2.2 Cancellation or Reduction of Secondment Services.

     MLP GP may terminate or reduce the level of any of the Secondment Services on 30 days’ prior
written notice to Company. In the event MLP GP terminates the Secondment Services, MLP GP shall pay
Company the monthly installment for the last month (or portion thereof) in which it received such
services. Upon payment thereof, MLP GP shall have no further payment obligations. In the event that
MLP GP reduces the level of any of the Secondment Services, the Parties will negotiate in good
faith to determine an appropriate Services Reimbursement (as defined in Section 3.1 below) for the
reduced Secondment Services.

2.3 Workers’ Compensation.

     At all times, the Company will maintain workers’ compensation insurance applicable to the
Seconded Employees. The Company wil name MLP GP as an also insured employer under such insurance
policy. Prior to being assigned any duties by MLP GP, each Seconded Employee must sign an
acknowledgement that the Seconded Employee is an employee during the Secondment Period of both the
Company and MLP GP and that for any work place injury, the Seconded Employee’s sole remedy will be
under the Company’s workers’ compensation insurance policy.

-4-

 

ARTICLE 3

SERVICES REIMBURSEMENT

3.1 Operational, Management, and Routine Maintenance Expenses.

     On or before the fifth business day of each month, Company shall send an invoice to MLP GP for
that amount of money associated with all expenses incurred by Company in connection with the
performance of the Secondment Services during the preceding month (the “Services
Reimbursement”). MLP GP shall pay such invoice within 45 days of receipt.

3.2 Seconded Employees.

     Among other items, the Services Reimbursement shall include all reasonable costs and expenses
incurred by the Company for the Seconded Employees, including, but not limited to:

	 	(i)	 	compensation, salary, and wages (including payroll and
withholding taxes associated therewith) ;
	 
	 	(ii)	 	401(k) costs and any matching 401(k) contributions;
	 
	 	(iii)	 	vacation and sick leave benefits;
	 
	 	(iv)	 	medical and health insurance benefits;
	 
	 	(v)	 	disability insurance;
	 
	 	(vi)	 	workers’ compensation insurance;
	 
	 	(vii)	 	life insurance;
	 
	 	(viii)	 	severance payments, if any;
	 
	 	(ix)	 	and any other employee benefit for which Company incurs costs

     The costs and expenses described in (i) through (viii) above are referred to as “Seconded
Employee Expenses.”

ARTICLE 4

ALLOCATION; RECORDS; AGENT

4.1 Allocation; Records.

     Company will use commercially reasonable efforts to maintain an allocation schedule reflecting
the direct and indirect costs of the Seconded Employee Expenses based on the Secondment Services.
MLP GP will use commercially reasonable efforts to keep and maintain books/records reflecting hours
worked and costs and expenses incurred in connection with each of the Seconded Employees, and the
Company will have the right from time to time upon its

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reasonable request to audit such books/records maintained by MLP GP. MLP GP and its
representatives will have the right to audit such records and such other records as MLP GP may
reasonably require in connection with its verification of the Seconded Employee Expenses during
regular business hours and on reasonable prior notice. Based on these records, MLP GP may request
the adjustments under Section 3.2 above.

4.2 Agent.

     Seconded Employee Expenses remain the primary legal responsibility of MLP GP as the employer
of the Seconded Employees during the Secondment Period. Company agrees to act as agent for MLP GP
in paying the Seconded Employee Expenses of the employees temporarily assigned under this
Secondment Agreement. Company agrees to indemnify and hold MLP GP harmless from any and all Losses
incurred by MLP GP or any of the other Partnership Entities related to Company’s failure to carry
out its duties as agent for the payment of the Seconded Employee Expenses as set forth above,
except to the extent that such Losses arise solely out of or result solely from the negligence,
gross negligence or willful misconduct of any of the Partnership Entities.

ARTICLE 5

TERM

     The term of this Agreement will commence on the Effective Date and will continue for an
initial period of 10 years. Upon the expiration of the initial 10 year period, the term of this
Agreement shall automatically extend for an additional 12 month period, unless either Party
provides at least 180 days’ prior written notice to the other Party prior to the expiration of such
initial period that the Party wishes for this Agreement to expire at the end of the initial 10 year
period. After the initial 12 month renewal period, the term of this Agreement shall automatically
extend for additional 12 month periods, unless either Party provides prior written notice at least
180 days prior to the expiration of the applicable 12 month period that the Party wishes for this
Agreement to expire at the end of such 12 month period. Upon proper notice by a Party to the other
Party, in accordance with this Article 5, that the Party wishes for this Agreement to expire on the
expiration of the applicable 10 year or 12 month period, this Agreement shall not automatically
extend, but shall instead expire upon the expiration of the 10 year or 12 month period and only
those provisions that, by their terms, expressly survive this Agreement shall so survive.
Notwithstanding the foregoing, MLP GP may terminate this agreement at any time upon 180 days prior
written notice to Company and only those provisions that, by their terms, expressly survive this
Agreement shall so survive.

ARTICLE 6

GENERAL PROVISIONS

6.1 Accuracy of Recitals.

     The paragraphs contained in the recitals to this Agreement are incorporated in this Agreement
by this reference, and the Parties to this Agreement acknowledge the accuracy thereof.

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6.2 Notices.

     Any notice, demand, or communication required or permitted under this Agreement shall be in
writing and delivered personally, by reputable courier, or by telecopier, and shall be deemed to
have been duly given as of the date and time reflected on the delivery receipt if delivered
personally or sent by reputable courier service, or on the automatic telecopier receipt if sent by
telecopier, addressed as follows:

Quicksilver Resources Inc.

777 West Rosedale Street

Fort Worth, Texas 76104

Attn: Law Department

Telecopy: 817-665-5004

Quicksilver Gas Services GP LLC

777 West Rosedale Street

Fort Worth, Texas 76104

Attn: Law Department

Telecopy: 817-665-5004

     A Party may change its address for the purposes of notices hereunder by giving notice to the
other Party specifying such changed address in the manner specified in this Section 6.2.

6.3 Further Assurances.

     The Parties agree to execute such additional instruments, agreements and documents, and to
take such other actions, as may be necessary to effect the purposes of this Agreement.

6.4 Modifications.

     Any actions or agreement by the Parties to modify this Agreement, in whole or in part, shall
be binding upon the Parties, so long as such modification shall be in writing and shall be executed
by all Parties with the same formality with which this Agreement was executed.

6.5 Interpretation.

     In this Agreement, unless a clear contrary intention appears: (a) the singular includes the
plural and vice versa; (b) reference to any individual, or any partnership, corporation, limited
liability company, trust or other legal entity (“Person”) includes such Person’s successors and
assigns but, in the case of Party, only if such successors and assigns are permitted by this
Agreement, and reference to a Person in a particular capacity excludes such Person in any other
capacity; (c) reference to any gender includes each other gender; (d) reference to any agreement
(including this Agreement), document or instrument means such agreement, document, or instrument as
amended or modified and in effect from time to time in accordance with the terms thereof and, if
applicable, the terms of this Agreement; (e) reference to any Section means such Section of this
Agreement, and references in any Section or definition to any clause means such

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clause of such Section or definition; (f) “hereunder,” “hereof,” “hereto” and words of similar
import will be deemed references to this Agreement as a whole and not to any particular Section or
other provision hereof or thereof; (g) “including” (and with correlative meaning “include”) means
including without limiting the generality of any description preceding such term; and (h) relative
to the determination of any period of time, “from” means “from and including,” “to” means “to but
excluding” and “through” means “through and including.”

6.6 Titles and Headings.

     Section titles and headings in this Agreement are inserted for convenience of reference only
and are not intended to be a part of, or to affect the meaning or interpretation of, this
Agreement.

6.7 No Third Party Beneficiaries.

     No Person not a Party to this Agreement will have any rights under this Agreement as a third
party beneficiary or otherwise, including, without limitation, Seconded Employees.

6.8 Relationship of the Parties.

     (a) Nothing in this Agreement will constitute the Partnership Entities, Company or its
Affiliates as members of any partnership, joint venture, association, syndicate or other entity.

     (b) As used in this Agreement, “Affiliate” means, with respect to any Person, (a) any other
Person directly or indirectly controlling, controlled by or under common control with such Person,
(b) any Person owning or controlling fifty percent (50%) or more of the voting interests of such
Person, (c) any officer or director of such Person, or (d) any Person who is the officer, director,
trustee, or holder of fifty percent (50%) or more of the voting interest of any Person described in
clauses (a) through (c). For purposes of this definition, the term “controls,” “is controlled by”
or “is under common control with” shall mean the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. For purposes of this Agreement, no
Partnership Entities shall be deemed to be an Affiliate of Company nor shall Company be deemed to
be an Affiliate of any Partnership Entities.

6.9 Assignment.

     Neither Party will, without the prior written consent of the other Party, which consent shall
not be unreasonably withheld, assign, mortgage, pledge or otherwise convey this Agreement or any of
its rights or duties hereunder; provided, however, that either Party may assign or convey this
Agreement without the prior written consent of the other Party to an Affiliate. Unless written
consent is not required under this Section 6.9, any attempted or purported assignment, mortgage,
pledge or conveyance by a Party without the written consent of the other Party shall be void and of
no force and effect. No assignment, mortgage, pledge or other conveyance by a Party shall relieve
the Party of any liabilities or obligations under this Agreement.

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6.10 Binding Effect.

     This Agreement will be binding upon, and will inure to the benefit of, the Parties and their
respective successors, permitted assigns and legal representatives.

6.11 Counterparts.

     This Agreement may be executed in any number of counterparts, each of which will be deemed to
be an original, and all of which together shall constitute one and the same Agreement. Each Party
may execute this Agreement by signing any such counterpart.

6.12 Time of the Essence.

     Time is of the essence in the performance of this Agreement.

6.13 Governing Law.

     This Agreement shall be deemed to be a contract made under, and for all purposes shall be
construed in accordance with and governed by, the laws of the State of Texas.

6.14 Delay or Partial Exercise Not Waiver.

     No failure or delay on the part of any Party to exercise any right or remedy under this
Agreement will operate as a waiver thereof; nor shall any single or partial exercise of any right
or remedy under this Agreement preclude any other or further exercise thereof or the exercise of
any other right or remedy granted hereby or any related document. The waiver by either Party of a
breach of any provisions of this Agreement will not constitute a waiver of a similar breach in the
future or of any other breach or nullify the effectiveness of such provision.

6.15 Entire Agreement.

     This Agreement constitutes and expresses the entire agreement between the Parties with respect
to the subject matter hereof. All previous discussions, promises, representations and
understandings relative thereto are hereby merged in and superseded by this Agreement.

6.16 Waiver.

     To be effective, any waiver or any right under this Agreement will be in writing and signed by
a duly authorized officer or representative of the Party bound thereby.

6.17 Signatories Duly Authorized.

     Each of the signatories to this Agreement represents that he is duly authorized to execute
this Agreement on behalf of the Party for which he is signing, and that such signature is
sufficient to bind the Party purportedly represented.

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6.18 Incorporation of Exhibits by References.

     Any reference herein to any exhibit to this Agreement will incorporate it herein, as if it
were set out in full in the text of this Agreement.

6.19 Dispute Resolution and Arbitration.

     (a) Should a dispute arise between the Parties, the Parties shall promptly seek to amicably
resolve any such dispute by negotiations between the Parties prior to the initiation of binding
arbitration in accordance with Section 6.19(b). The Parties shall meet at a mutually acceptable
time and place within fifteen (15) days and thereafter as often as they reasonably determine to be
necessary or appropriate to exchange relevant information and to attempt to resolve the dispute.
All negotiations and communications pursuant to this Section 6.19(a) shall be treated and
maintained by the Parties as confidential information and shall be treated as compromise and
settlement negotiations for purposes of the Federal Rules of Evidence. Any proposed resolution of a
dispute under this Agreement must be approved on behalf of the Partnership by the Conflicts
Committee of the Board of Directors of MLP GP before it is finalized. If the matter is not resolved
within 30 days after the initial meeting of the Parties, or such longer period as may be mutually
agreed upon, either Party may initiate arbitration in accordance with Section 6.19(b).

     (b) Any disputes hereunder, including the inability of the Parties to agree to an adjustment
to the Services Reimbursements pursuant to the provisions of Section 3.1, must be resolved through
the use of binding arbitration using three arbitrators, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, as supplemented to the extent necessary
to determine any procedural appeal questions by the Federal Arbitration Act (Title 9 of the United
States Code). If there is any inconsistency between this Section and the Commercial Arbitration
Rules or the Federal Arbitration Act, the terms of this Section 6.19 will control the rights and
obligations of the Parties. Arbitration must be initiated within the applicable time limits set
forth in this Agreement and not thereafter or if no time limit is given, within the time period
allowed by the applicable statute of limitations. Arbitration may be initiated by a party
(“Claimant”) serving written notice on the other party (“Respondent”) that the
Claimant elects to refer a particular dispute to binding arbitration. Claimant’s notice initiating
binding arbitration must identify the arbitrator Claimant has appointed. The Respondent shall
respond to Claimant within 30 days after receipt of Claimant’s notice, identifying the arbitrator
Respondent has appointed. If the Respondent fails for any reason to name an arbitrator within the
30-day period, Claimant shall petition to the American Arbitration Association for appointment of
an arbitrator for Respondent’s account. The two arbitrators so chosen shall select a third
arbitrator within 30 days after the second arbitrator has been appointed. The Claimant will pay the
compensation and expenses of the arbitrator named by or for it, and the Respondent will pay the
compensation and expenses of the arbitrator named by or for it. The costs of petitioning for the
appointment of an arbitrator, if any, shall be paid by Respondent. The Claimant and Respondent will
each pay one-half of the compensation and expenses of the third arbitrator. All arbitrators must
(a) be neutral parties who have never been officers, directors or employees of any of the
Partnership Entities, Company or its Affiliates and (b) have not less than seven years experience
in the energy industry. The hearing will be conducted in Fort Worth, Texas and commence within 30
days after the selection of the third arbitrator. The Parties and the

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arbitrators should proceed diligently and in good faith in order that the award may be made as
promptly as possible. Except as provided in the Federal Arbitration Act, the decision of the
arbitrators will be binding on and non-appealable by the parties hereto. The arbitrators shall have
no right to grant or award indirect, consequential, punitive or exemplary damages of any kind.

6.20 Continuation of Work During Dispute.

     Subject to Section 2.2 hereof, notwithstanding any dispute, it shall be the responsibility of
each Party to continue to perform its obligations under this Agreement pending resolution of the
dispute.

[Signature page follows]

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     AS WITNESS HEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives on the date herein above mentioned.

	 	 	 	 	 	 	 
	 	 	QUICKSILVER RESOURCES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	  /s/      Philip Cook

	 	 
	 	 	Name:   Philip Cook	 	 
	 	 	Title:   Senior Vice President—Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	QUICKSILVER GAS SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	  /s/      Philip Cook

	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:   Philip Cook	 	 
	 	 	Title:   Senior Vice President—Chief Financial Officer	 	 

 

EXHIBIT A TO THE

SERVICES AND SECONDMENT AGREEMENT

     This Exhibit A is attached the Services and Secondment Agreement (the “Agreement”)
dated August 10, 2007 by and between QUICKSILVER RESOURCES INC. and QUICKSILVER GAS SERVICES GP
LLC. All defined terms used herein shall have the same meaning as set forth in the Agreement.

     All information must be filled in for this form to be valid.

SECONDED EMPLOYEE SCHEDULE

	 	 	 	 	 
	Name of Seconded	 	 	 	 
	Employee	 	Title and Job Function	 	Start Date
	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	QUICKSILVER RESOURCES INC.	 	 	 	QUICKSILVER GAS SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Name:

	 	Philip Cook
	 	 	 	Name:
	 	Philip Cook	 	 
	Title:

	 	Senior Vice President—Chief

Financial Officer
	 	 	 	Title:
	 	Senior Vice President—Chief

Financial Officer	 	 

-13-

 

EXHIBIT B TO THE

SERVICES AND SECONDMENT AGREEMENT

     This Exhibit B is attached the Services and Secondment Agreement (the “Agreement”)
dated August 10, 2007 by and between QUICKSILVER RESOURCES INC. and QUICKSILVER GAS SERVICES GP
LLC. All defined terms used herein shall have the same meaning as set forth in the Agreement.

ADDITION/REMOVAL/CHANGE OF RESPONSIBILITY

OF SECONDED EMPLOYEE

     In accordance with Section 1.1 of the Secondment Agreement, the Parties hereto wish to add,
remove, or change the responsibilities of the following Seconded Employees.

     All information must be filled in for this form to be valid.

	 	 	 	 	 	 	 
	Name of Seconded	 	 	 	 	 	 
	Employee	 	Title and Job Function	 	Start Date	 	End Date
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	QUICKSILVER RESOURCES INC.	 	 	 	QUICKSILVER GAS SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Name:

	 	Philip Cook
	 	 	 	Name:
	 	Philip Cook	 	 
	Title:

	 	Senior Vice President—Chief

Financial Officer
	 	 	 	Title:
	 	Senior Vice President—Chief

Financial Officer	 	 

-14-

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