Document:

KWK 10-Q 2014.03.31 EX10.1

Exhibit 10.1

[Quicksilver Resources Inc. Letterhead]

July 15, 2013

David Rushford
[Address redacted]
Dear Dave:
Effective July 15, 2013, Quicksilver Resources is pleased to offer you a retention bonus with an aggregate value of $500,000 CDN to be awarded in the form of cash and a stock option grant of Quicksilver Resources stock in appreciation of your efforts on behalf of the Company.  The cash will vest and be paid (less applicable required taxes and authorized deductions), and the stock option will vest and become exercisable (if and when exercised, less applicable required taxes and authorized deductions), per the following schedule:

Vesting Date            Cash            Stock Option
July 15, 2014             $125,000 CDN
July 15, 2015             $125,000 CDN
July 15, 2016                             250,000

To become vested in an installment of the retention bonus you must be an active, regular full-time employee in good standing and remain in continuous employment of the Company or one of its subsidiaries, or any successor thereof, from the date of this letter agreement through the applicable installment payment/vesting date.
In the event that your employment ceases on or before an installment payment/vesting date because of (i) termination through no fault of your own as a result of a reduction in force or (ii) an Involuntary Termination, as defined in the Quicksilver Resources Inc. Amended and Restated Executive Change in Control Retention Incentive Plan, the unpaid/unvested installments will be paid/vested within 60 days of the date of your termination and subject to your execution and non-revocation during such period of a release agreement satisfactory to the Company; provided that, in the case of any cash payment that could be paid during a period that begins in one taxable year and ends in the subsequent taxable year, it will be paid in the subsequent taxable year, to the extent required to avoid the additional tax imposed pursuant to Section 409A of the U.S. Internal Revenue Code.

The stock option will have a per share exercise price equal to the closing sale price of Quicksilver Resources stock on July 15, 2013 and will have a term of ten years commencing on July 15, 2013, subject to earlier expiration in accordance with the standard terms of any document that evidences such award.

The retention bonus will not affect any annual merit increase or the award or amount of any annual bonus or long–term incentive to which you may be entitled to receive pursuant to applicable bonus or equity plans that are approved from time to time by the Company.

This letter agreement (together with, as applicable, any document that evidences the award of your stock option) is the entire agreement between the parties and any amendments or revisions of this agreement must be in writing and signed by both parties.  This letter agreement does not constitute an employment agreement and shall not be construed to change the other employment terms under which you are employed.

Please indicate your acceptance of this letter agreement by signing the attached duplicate copy of this agreement and return to the Human Resources Department in Fort Worth, Attn: Anne Self, no later than July 22, 1013.
Thank you for your loyalty to and efforts on behalf of Quicksilver.

Sincerely,

/s/ Glenn Darden

Glenn Darden
President/CEO

I have read and understand the contents of this retention agreement.  I accept the provisions of the agreement as set forth above.

	
			
	/s/ David Rushford
	 
	July 22, 2013

	David Rushford
	 
	Date

 

[Quicksilver Resources Inc. Letterhead]

July 15, 2013

David Rushford
[Address redacted]
Dear Dave:
On July 15, 2013, the Compensation Committee of the Board of Directors of Quicksilver Resources approved a bonus award in the aggregate amount of $500,000 CDN in connection with the successful completion of a Horn River Basin transaction. This bonus is a grant in the form of cash ($250,000 CDN) and a stock option grant (250,000 shares) of Quicksilver Resources stock in appreciation of your efforts on behalf of the Company.

The cash will vest and be paid (less applicable required taxes and authorized deductions), and the stock option will vest and become exercisable (if and when exercised, less applicable required taxes and authorized deductions), upon the Board approved closing and funding of a transaction or series of transactions to sell or otherwise dispose of at least 25% of the Company’s interest in its oil and gas assets in the Horn River Basin; provided that you must be an active, regular full-time employee in good standing and remain in continuous employment of the Company or one of its subsidiaries, or any successor thereof, from the date of this letter agreement through the applicable payment /vesting date.

The stock option will have a per share exercise price equal to the closing sale price of Quicksilver Resources stock on July 15, 2013 and will have a term of ten years commencing on July 15, 2013, subject to earlier expiration in accordance with the standard terms of any document that evidences such award.

This bonus will not affect any annual merit increase or the award or amount of any annual bonus or long–term incentive to which you may be entitled to receive pursuant to applicable bonus or equity plans that are approved from time to time by the Company.

This letter agreement (together with, as applicable, any document that evidences the award of your stock option) is the entire agreement between the parties and any amendments or revisions of this agreement must be in writing and signed by both parties.  This letter agreement does not constitute an employment agreement and shall not be construed to change the other employment terms under which you are employed.

Please indicate your acceptance of this letter agreement by signing the attached duplicate copy of this agreement and return to the Human Resources Department in Fort Worth, Attn: Anne Self, no later than July 22, 2013.
We are confident in the completion of this transaction and you have our continued support.
Sincerely,

/s/ Glenn Darden

Glenn Darden
President/CEO

Accepted and Agreed to:
	
			
	/s/ David Rushford
	 
	July 22, 2013

	David Rushford
	 
	Date

 

[Quicksilver Resources Inc. Letterhead]

April 16, 2014

David Rushford
[Address redacted]
Dear Dave,
Quicksilver Resources Inc. (the “Company”) previously sent you two letters, both dated July 15, 2013, one of which set forth the terms of a retention bonus awarded to you (the “Retention Letter”) and the other of which set forth the terms of a bonus in connection with a successful completion of a Horn River Basin transaction (the “Horn River Letter,” together with the Retention Letter, the “Letters”).  As indicated in the Retention Letter, the aggregate value of the retention bonus was $500,000 CDN, 50% of which was awarded in the form of cash and 50% in the form of a stock option award.  Likewise, as indicated in the Horn River Letter, the aggregate value of the Horn River bonus was $500,000 CDN, 50% of which would be awarded in the form of cash and 50% in the form of a stock option award.

In determining the number of shares of the Company underlying the two stock option awards described above, a calculation error related to currency conversion was made.  As a result, each Letter indicated that the applicable stock option award would be with respect to 250,000 shares of the Company.  However, each Letter should have stated that the applicable stock option award was with respect to 240,075 shares of the Company, a number of shares that results in a stock option award with a value of $250,000 CDN.

This letter acts to correct each of the Letters, as well as the Nonqualified Stock Option Agreement with respect to the retention bonus stock option award dated July 15, 2013 and the Nonqualified Stock Option Agreement with respect to the Horn River bonus stock option award dated July 15, 2013 (together, the “Award Agreements”), with the effect that in each instance where the number of shares of Company stock with respect to the stock option award is stated, the respective Letter and Award Agreement shall be read to state 240,075 shares instead of 250,0000 shares, and as such each of the Letters and the Award Agreements will reflect that the difference of 9,925 shares was never awarded to you.  Except as expressly provided in this letter, each of the Letters and the Award Agreements shall remain in full force and effect in accordance with its respective terms.

Thank you for your understanding and your efforts on behalf of Quicksilver.

Sincerely,

/s/ Glenn Darden

Glenn Darden
President/CEO

I have read and understand the contents of this letter and acknowledge its provisions.

	
			
	/s/ David Rushford
	 
	April 16, 2014

	David Rushford
	 
	DateKWK 10-Q 2014.03.31 EX10.2

Exhibit 10.2
MUTUAL RELEASE AGREEMENT
THIS MUTUAL RELEASE AGREEMENT (this “Release Agreement”) is entered into between Thomas F. Darden (“Executive”) and QUICKSILVER RESOURCES INC. (the “Company”).  The Company, together with its past, present and future parent organizations, subsidiaries, affiliated entities, related companies and divisions and each of their respective past, present and future officers, directors, employees, shareholders, trustees, members, partners, plan administrators, attorneys, and agents (individually and in their official capacities), as well as any predecessors, future successors or assigns or estates of any of the foregoing, is collectively referred to in this Release Agreement as the “Company Released Parties.”  Executive, together with his affiliated entities, related companies and divisions and each of their respective past, present and future officers, directors, employees, shareholders, trustees, members, partners, plan administrators, attorneys, and agents (individually and in their official capacities), as well as any predecessors, future successors or assigns or estates of any of the foregoing, is collectively referred to in this Release Agreement as the “Executive Released Parties.”
1.    Separation from Employment.  Executive acknowledges and understands that Executive’s last day of employment with the Company is December 31, 2013 (the “Employment Separation Date”).  Executive further acknowledges that Executive has received all compensation and benefits to which Executive is entitled as a result of Executive’s employment, except as otherwise provided under this Agreement and Executive’s Agreement with the Company, dated as of May 15, 2013 (the “Separation Agreement.  Executive understands that, except as otherwise expressly provided in the Separation Agreement, Executive is entitled to nothing further from the Company Released Parties, including reinstatement by the Company.
2.    Releases.
(a)    In consideration of the payments and benefits provided under the Separation Agreement, Executive, for himself and on behalf of all of the Executive Released Parties, hereby unconditionally and irrevocably releases, waives, discharges and gives up, to the full extent permitted by law, any and all Claims (as defined below) that any of the Executive Released Parties may have against any of the Company Released Parties, arising on or prior to the date of Executive’s execution and delivery of this Release Agreement to the Company.  “Claims” means any and all actions, charges, controversies, demands, causes of action, suits, rights, and/or claims whatsoever for debts, sums of money, wages, salary, severance pay, expenses, commissions, fees, bonuses, unvested stock options, vacation pay, sick pay, fees and costs, attorneys’ fees, losses, penalties, damages, including damages for pain and suffering and emotional harm, arising, directly or indirectly, out of any promise, agreement, offer letter, contract, understanding, common law, tort, the laws, statutes, and/or regulations of any and all relevant jurisdictions, whether arising directly or indirectly from any act or omission, 

whether intentional or unintentional.  This releases all Claims, including those of which any of the Executive Released Parties is not aware and those not mentioned in this Release Agreement.  Executive specifically releases any and all Claims arising out of Executive’s employment with the Company and any of the other Company Released Parties or termination therefrom.  Executive expressly acknowledges and agrees that, by entering into this Release Agreement, Executive is releasing and waiving any and all Claims which have arisen on or before the date of Executive’s execution and delivery of this Release Agreement to the Company. Notwithstanding anything contained in this Release Agreement to the contrary, nothing contained in this Release Agreement releases any of the Executive Released Parties’ Claims with respect to any breach of any covenant, agreement, representation or warranty made by the Company under this Release Agreement or the Separation Agreement.
(b)    In consideration of the above release and other agreements provided under the Separation Agreement, the Company, for itself and on behalf of all of the Company Released Parties, hereby unconditionally and irrevocably releases, waives, discharges and gives up, to the full extent permitted by law, any and all Claims (as defined above) that any of the Company Released Parties may have against any Executive Released Parties, arising on or prior to the date of the Company’s execution and delivery of this Release Agreement to the Executive.  This releases all Claims, including those of which any Company Released Party is not aware and those not mentioned in this Release Agreement.  The Company expressly acknowledges and agrees that, by entering into this Release Agreement, the Company is releasing and waiving any and all Claims which have arisen on or before the date of the Company’s execution and delivery of this Release Agreement to the Executive.  Notwithstanding anything contained in this Release Agreement to the contrary, nothing contained in this Release Agreement releases any of the Company Released Parties’ Claims with respect to any breach of any covenant, agreement, representation or warranty made by Executive under this Release Agreement or the Separation Agreement.
3.    Representations; Covenant not to Sue.  Each of the parties hereto hereby represents and warrants that (a) such party has not filed, caused or permitted to be filed any pending proceeding (nor has such party lodged a complaint with any governmental or quasi-governmental authority) against any of the parties released by such party, nor has such party agreed to do any of the foregoing, (b) such party has not assigned, transferred, sold, encumbered, pledged, hypothecated, mortgaged, distributed, or otherwise disposed of or conveyed to any third party any right or Claim against any of the parties released by such party that has been released in this Release Agreement, and (c) such party has not directly or indirectly assisted any third party in filing, causing or assisting to be filed, any Claim against any of the parties released by such party.  Each party covenants and agrees that such party shall not encourage or solicit or voluntarily assist or participate in any way in the filing, reporting or prosecution by such party or any third party of a proceeding or Claim against any of the parties released by such party.

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4.    Binding Agreement.  Executive and his heirs, executors, estate, successors and assigns are bound by this Release Agreement.  The Company and its successors and assigns are bound by this Release Agreement.
5.    The Company Property.  Executive represents and warrants that Executive has returned to the Company all property in Executive’s possession, custody or control belonging to the Company, its affiliates or subsidiaries, including, but not limited to, all equipment, computers, pass codes, keys, swipe cards, credit cards, documents or other materials, in whatever form or format, that Executive received, prepared, or helped prepare.  Executive represents that Executive has not retained any copies, duplicates, reproductions, computer disks, or excerpts thereof, whether in hard copy or electronic form, of the Company’s, its affiliates’ or subsidiaries’ documents.
6.    Remedies.  If Executive breaches any term or condition of this Release Agreement or the Separation Agreement, or any representation made by Executive in this Release Agreement was false when made, it shall constitute a material breach of this Release Agreement and in addition to and not instead of the Company Released Parties’ other remedies under law or in equity, Executive shall immediately, upon written notice from the Company, forfeit (i) all rights granted under Section 1(c)(iii) of the Separation Agreement to receive and/or retain the 2013 Cash Bonus and the 2013 Stock Bonus (as such terms are defined in Section 1(c)(iii) of the Separation Agreement), (ii) all rights granted to the payments or benefits provided for under Section 2(b) of the Separation Agreement, and (iii) all rights granted under Section 4 of the Separation Agreement to receive and/or retain any payment or benefit to or for the benefit of Executive provided for in Section 4 of the Separation Agreement.  Executive agrees that if Executive is required to forfeit any rights under the foregoing sentence, this Release Agreement shall continue to be binding on the Executive Released Parties, and the Company Released Parties shall be entitled to enforce the provisions of this Release Agreement as if such amounts and rights had not been repaid or forfeited and the Company shall have no further obligations to Executive under Sections 1(c)(iii), 2(b) and 4 of the Separation Agreement.  Further, (x) in the event of Executive’s breach of any term or condition of this Release Agreement, Executive agrees to reimburse all of the Company Released Parties’ attorneys’ fees and other costs associated with enforcing this Release Agreement, and (y) in the event of the Company’s breach of any term or condition of this Release Agreement, the Company agrees to reimburse all of the Executive Released Parties’ attorneys’ fees and other costs associated with enforcing this Release Agreement.
7.    Construction of Agreement.  In the event that one or more of the provisions contained in this Release Agreement shall for any reason be held unenforceable in any respect under the law of any relevant jurisdiction, such unenforceability shall not affect any other provision of this Release Agreement, but this Release Agreement shall then be construed as if such unenforceable provision or provisions had never been contained herein.  If it is ever held that any restriction hereunder is too broad to permit enforcement of such restriction to its fullest extent, such restriction shall be enforced to the maximum extent permitted by applicable law.  This 

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Release Agreement and any and all matters arising directly or indirectly herefrom shall be governed under the laws of Texas without reference to choice of law rules.  The Company and Executive consent to the sole jurisdiction of the federal and state courts of Texas.  EACH OF EXECUTIVE AND THE COMPANY HEREBY WAIVE HIS OR ITS RESPECTIVE RIGHT TO TRIAL BY JURY IN ANY ACTION CONCERNING THIS RELEASE AGREEMENT OR ANY AND ALL MATTERS ARISING DIRECTLY OR INDIRECTLY HEREFROM, AND REPRESENT THAT HE OR IT HAS CONSULTED WITH HIS OR ITS OF THEIR CHOICE OR HAVE CHOSEN VOLUNTARILY NOT TO DO SO SPECIFICALLY WITH RESPECT TO THIS WAIVER.
8.    Opportunity for Review.  Executive represents and warrants that Executive (i) has had sufficient opportunity to consider this Release Agreement, (ii) has read this Release Agreement, (iii) understands all the terms and conditions hereof, (iv) is not incompetent or had a guardian, conservator or trustee appointed for Executive, (v) has entered into this Release Agreement of Executive’s own free will and volition, (vi) has duly executed and delivered this Release Agreement, (vii) understands that Executive is responsible for Executive’s own attorneys’ fees and costs, (viii) has had the opportunity to review this Release Agreement with counsel of his choice or has chosen voluntarily not to do so, (ix) has been given 21 days to review this Release Agreement before signing this Release Agreement and 7 days following execution to revoke this Release Agreement and understands that he must execute this Release Agreement and return it to the Company after the Employment Separation Date and on or before January 21, 2014 and has until January 28, 2013 to revoke this Release Agreement, (x) understands that if Executive does not sign this Release Agreement during the specified period, the Company shall have no obligation to enter into this Release Agreement, (xi) understands that if Executive does not sign this Release Agreement during the specified period or Executive revokes this Release Agreement following its execution, Executive shall not be entitled to receive the payments or benefits provided for under Sections 1(c)(iii), 2(b) and 4 of the Separation Agreement, and the Employment Separation Date shall be unaltered; and (xii) understands that this Release Agreement is valid, binding, and enforceable against the parties hereto in accordance with its terms.
9.    Effectiveness.  This Release Agreement shall be effective and enforceable immediately after execution and delivery to the Company by Executive, as specified above, and execution and delivery by the Company to Executive.
[The remainder of this page is intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have executed this Release Agreement as of the dates written below.
Agreed to and accepted on this
 
21st day of January   , 2014.
	
		
	 
	EXECUTIVE

	 
	/s/ Thomas F. Darden

	 
	Thomas F. Darden

Agreed to and accepted on this 
21st day of January   , 2014.
	
	
	QUICKSILVER RESOURCES INC.

	/s/ John C. Regan

	Name:   John C. Regan

	Title: Senior Vice President – 
Chief Financial Officer

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