Document:

exv10w2

 

Exhibit 10.2

QUEST ENERGY PARTNERS, L.P.

LONG-TERM INCENTIVE PLAN

     SECTION 1. Purpose of the Plan.

     The Quest Energy Partners, L.P. Long-Term Incentive Plan (the “Plan”) has been adopted by
Quest Energy GP, LLC, a Delaware limited liability company (the “Company”), the general partner of
Quest Energy Partners, L.P., a Delaware limited partnership (the “Partnership”). The Plan is
intended to promote the interests of the Partnership, the Company, and their Affiliates by
providing to Employees, Consultants and Directors incentive compensation awards for superior
performance that are based on Units. The Plan is also contemplated to enhance the ability of the
Company and its Affiliates to attract and retain the services of individuals who are essential for
the growth and profitability of the Partnership, and to encourage them to devote their best efforts
to advancing the business of the Partnership.

     SECTION 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     “Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used herein, the term “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.

     “Award” means an Option, UAR, Restricted Unit, Phantom Unit, Other Unit-Based Award or a Unit
Award granted under the Plan, and shall include any tandem DERs granted with respect to an Award.

     “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

     “Board” means the Board of Directors of the Company.

     “Change of Control” means, and shall be deemed to have occurred upon the occurrence of one or
more of the following events:

	 	(i)	 	any “person” or “group” within the meaning of those terms as used in Sections
13(d) and 14(d)(2) of the Exchange Act, other than an Affiliate of the Company or the
Parent or its Affiliates, shall become the beneficial owner, by way of merger,
consolidation, recapitalization, reorganization or otherwise, of 50% or more of the
combined voting power of the equity interests in the Parent, the Company or the
Partnership;

 

 

	 	(ii)	 	the limited partners of the Partnership approve, in one or a series of
transactions, a plan of complete liquidation of the Partnership;
	 
	 	(iii)	 	the sale or other disposition by either the Company or the Partnership of all
or substantially all of its assets in one or more transactions to any Person other than
the Company, the Parent or an Affiliate of the Company, or the Parent; or
	 
	 	(iv)	 	a transaction resulting in a Person other than the Company or an Affiliate of
the Company being the general partner of the Partnership.

     Notwithstanding the foregoing, with respect to an Award that is subject to Section 409A of the
Code and with respect to which a Change of Control will accelerate payment, “Change of Control”
shall mean a “change of control event” as defined in the regulations and guidance issued under
Section 409A of the Code.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Committee” means the Board, the Compensation Committee of the board of directors of the
Parent or such other committee of the Board or the board of directors of Parent as may be appointed
by the Board to administer the Plan.

     “Consultant” means an individual, other than an Employee or a Director, providing bona fide
services to the Partnership or any of its subsidiaries as a consultant or an advisor, as
applicable, provided that such individual is a natural Person.

     “DER” or “Distribution Equivalent Right” means a right to receive an amount in cash equal to
the cash distributions made by the Partnership with respect to a Unit during a specified period.

     “Director” means a member of the Board who is not an Employee.

     “Employee” means any employee of the Company or Affiliate who performs direct services for the
benefit of the Partnership or any of its subsidiaries.

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

     “Fair Market Value” means the closing sales price of a Unit on the principal national
securities exchange or other market in which trading in Units occurs on the applicable date (or if
there is no trading in the Units on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service approved by the
Committee). In the event Units are not traded on a national securities exchange or other market at
the time a determination of fair market value is required to be made hereunder, the determination
of fair market value shall be made in good faith by the Committee.

     “Option” means an option to purchase Units granted under the Plan.

     “Other Unit-Based Award” means an award granted pursuant to Section 6(f) of the Plan.

-2-

 

     “Parent” means Quest Resource Corporation.

     “Participant” means any Employee, Consultant or Director granted an Award under the Plan.

     “Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “Phantom Unit” means a phantom (notional) Unit granted under the Plan which upon vesting
entitles the Participant to receive, in the discretion of the Committee, a Unit or an amount of
cash equal to the Fair Market Value of a Unit.

     “Restricted Period” means the period established by the Committee with respect to an Award
during which the Award remains nontransferable and subject to forfeiture and is either not
exercisable by or payable to the Participant, as the case may be.

     “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period.

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any successor
rule or regulation thereto as in effect from time to time.

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “Unit” means a common unit of the Partnership.

     “UDR” or “Unit Distribution Right” means a distribution made by the Partnership with respect
to a Restricted Unit.

     “Unit Appreciation Right” or “UAR” means an Award that, upon exercise, entitles the holder to
receive in cash or Units in the discretion of the Committee, the excess of the Fair Market Value of
a Unit on the exercise date over the exercise price established for such Unit Appreciation Right.

     “Unit Award” means a grant of a Unit that is not subject to a Restricted Period.

     SECTION
3. Administration.

     (a) Governance. The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of the members of the Committee who are present
at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of
the Committee in writing, shall be the acts of the Committee.

     (b) Delegation. Subject to the following and applicable law, the Committee, in it
sole discretion, may delegate any or all of its powers and duties under the Plan, including the
power to grant Awards under the Plan, to the Chief Executive Officer of the Company, subject to
such limitations on such delegated powers and duties as the Committee may impose, if any. Upon any

-3-

 

such delegation, all references in the Plan to the “Committee”, other than in Section 7, shall
be deemed to include the Chief Executive Officer, provided, however, that such delegation shall not
limit the Chief Executive Officer’s right to receive Awards under the Plan. Notwithstanding the
foregoing, the Chief Executive Officer may not grant Awards to, or take any action with respect to
any Award previously granted to, a person who is an officer subject to Rule 16b-3 or a member of
the Board.

     (c) Authority and Powers. Subject to the terms of the Plan and applicable law, and
in addition to other express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority to: (i) designate Participants; (ii) determine the
type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to
what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited;
(vi) interpret and administer the Plan and any instrument or agreement relating to an Award made
under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint
such agents as it shall deem appropriate for the proper administration of the Plan; and (viii) make
any other determination and take any other action that the Committee deems necessary or desirable
for the administration of the Plan. The Committee may correct any defect or supply any omission or
reconsider any inconsistency in the Plan or an Award Agreement in such manner and extent the
Committee deems necessary or appropriate. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and
shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership,
any Affiliate, any Participant, and any beneficiary of any Award.

     SECTION 4. Units.

     (a) Limits on Units Deliverable. Subject to adjustment as provided in Section 4(c),
the number of Units that may be delivered with respect to Awards under the Plan is ___, of
which no more than ___ may be delivered with respect to Unit Awards and vested Restricted
Unit and Phantom Unit awards. If any Award (including Restricted Units) is terminated, forfeited
or expires for any reason without the delivery of Units covered by such Award or Units are withheld
from an Award to satisfy the exercise price or tax withholding obligation with respect to such
Award, such Units shall again be available for delivery pursuant to other Awards granted under the
Plan. Notwithstanding the foregoing, there shall not be any limitation on the number of Awards
that may be granted under the Plan and paid in cash, and any Units allocated to an Award payable in
cash or Units shall, to the extent paid in cash, be again available for delivery under the Plan
with respect to other Awards. With respect to UARs, the Company shall initially allocate the full
number of Units subject to the UAR, and shall, upon settlement of the UAR, add back to the number
of Units available under the Plan, the excess of (a) the number of Units initially allocated with
respect to the UAR over (b) the number of Units, if any, delivered in settlement of the UAR.

     (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market or from any

-4-

 

Affiliate, the Partnership or any other Person, newly issued Units, or any combination of the
foregoing, as determined by the Committee in its sole discretion.

     (c) Adjustments. In the event that the Committee determines that any distribution
(whether in the form of cash, Units, other securities, or other property), recapitalization, split,
reverse split, reorganization, merger, Change of Control, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Units or other securities of the Partnership, issuance of
warrants or other rights to purchase Units or other securities of the Partnership, or other similar
transaction or event affects the Units such that an adjustment is determined by the Committee to be
appropriate in order to prevent the dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the Committee shall, in such manner as it may
deem equitable, adjust any or all of (i) the number and type of Units (or other securities or
property) with respect to which Awards may be granted, (ii) the number and type of Units (or other
securities or property) subject to outstanding Awards, (iii) the grant or exercise price with
respect to any Award, or (iv) if deemed appropriate, make provision for a cash payment to the
holder of an outstanding Award; provided, that the number of Units subject to any Award shall
always be a whole number. With respect to any other similar event that would not result in a FAS
123R accounting charge if the adjustment to Awards with respect to such event were subject to
discretionary action, the Committee shall have complete discretion to adjust Awards in such manner
as it deems appropriate with respect to such other event. Any adjustment or modification made to
an Award that is subject to or exempt from Section 409A of the Code shall be made in a manner so as
to not result in any violation of Section 409A.

     SECTION 5. Eligibility.

     Any Employee, Consultant or Director shall be eligible to be designated a Participant and
receive an Award under the Plan.

     SECTION 6. Awards.

     (a) Options. The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Options shall be granted, the number of Units to be covered by
each Option, whether DERs are granted with respect to such Option, the purchase price for such
Units and the conditions and limitations applicable to the exercise of the Option, including the
following terms and conditions and such additional terms and conditions, as the Committee shall
determine, that are not inconsistent with the provisions of the Plan.

     (i) Exercise Price. The exercise price per Unit under an Option shall be
determined by the Committee at the time the Option is granted but in no event may the
exercise price per share be less than its Fair Market Value as of the date of grant.

     (ii) Time and Method of Exercise. The Committee shall determine (a) the time
or times at which an Option may be exercised in whole or in part, which may include, without
limitation, accelerated exercisability upon the achievement of specified performance goals
or other events, and, (b) in its discretion, the method or methods by which payment of the
exercise price with respect thereto may be made or deemed to have been made, which may
include, without limitation, cash, check acceptable to the

-5-

 

Company, a cashless broker-assisted exercise through a program approved by the Company,
with the consent of the Company, the withholding of Units that would otherwise be delivered
to the Participant upon the exercise of the Option, other securities or other property, or
any combination thereof, having a Fair Market Value on the exercise date equal to the
relevant exercise price.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting arrangement with the
Company and its Affiliates or membership on the Board, whichever is applicable, for any
reason during the applicable Restricted Period, all Options shall be forfeited by the
Participant. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Options.

     (iv) DERs. To the extent provided by the Committee, in its discretion, a grant
of Options may include a tandem DER grant, which may provide that such DERs shall be paid
directly to the Participant, be credited to a bookkeeping account (with or without interest
in the discretion of the Committee) subject to the same vesting restrictions as the tandem
Award, or be subject to such other provisions or restrictions as determined by the Committee
in its discretion. DERs may not be paid in a manner that will result in an Option otherwise
exempt from Section 409A of the Code becoming subject to Section 409A of the Code.

     (b) UARs. The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Unit Appreciation Rights shall be granted, the number of Units to
be covered by each grant, whether DERs are granted with respect to such Unit Appreciation Right,
the exercise price therefor and the conditions and limitations applicable to the exercise of the
Unit Appreciation Right, including the following terms and conditions and such additional terms and
conditions, as the Committee shall determine, that are not inconsistent with the provisions of the
Plan.

     (i) Exercise Price. The exercise price per Unit Appreciation Right shall be
determined by the Committee at the time the Unit Appreciation Right is granted but in no
event may the exercise price per UAR be less than the Fair Market Value of a Unit as of the
date of grant.

     (ii) Time of Exercise. The Committee shall determine the time or times at
which a Unit Appreciation Right may be exercised in whole or in part, which may include,
without limitation, accelerated vesting upon the achievement of specified performance goals
or other events.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting arrangement with the
Company and its Affiliates or membership on the Board, whichever is applicable, for any
reason during the applicable Restricted Period, all outstanding Unit Appreciation Rights
awarded the Participant shall be automatically forfeited on such termination. The Committee
may, in its discretion, waive in whole or in part such forfeiture with respect to a
Participant’s Unit Appreciation Rights.

-6-

 

     (iv) DERs. To the extent provided by the Committee, in its discretion, a grant
of Unit Appreciation Rights may include a tandem DER grant, which may provide that such DERs
shall be paid directly to the Participant, be credited to a bookkeeping account (with or
without interest in the discretion of the Committee) subject to the same vesting
restrictions as the tandem Unit Appreciation Rights Award, or be subject to such other
provisions or restrictions as determined by the Committee in its discretion. DERs may not be
paid in a manner that will result in a UAR otherwise exempt from Section 409 of the Code
becoming subject to Section 409A of the Code.

     (c) Phantom Units. The Committee shall have the authority to determine the Employees,
Consultants, and Directors to whom Phantom Units shall be granted, the number of Phantom Units to
be granted to each such Participant, the Restricted Period, the time or conditions under which the
Phantom Units may become vested or forfeited, which may include, without limitation, the
accelerated vesting upon the achievement of specified performance goals or other events, and such
other terms and conditions as the Committee may establish with respect to such Awards, including
whether DERs are granted with respect to such Phantom Units.

     (i) DERs. To the extent provided by the Committee, in its discretion, a grant
of Phantom Units may include a tandem DER grant, which may provide that such DERs shall be
paid directly to the Participant, be credited to a bookkeeping account (with or without
interest in the discretion of the Committee), be “reinvested” in Restricted Units or
additional Phantom Units and be subject to the same or different vesting restrictions as the
tandem Award, or be subject to such other provisions or restrictions as determined by the
Committee in its discretion. Absent a contrary provision in the grant agreement, upon a
cash distribution with respect to a Unit, cash equal in amount to such distribution shall be
paid to the Participant with respect to each DER without restriction.

     (ii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting arrangement with the
Company and its Affiliates or membership on the Board, whichever is applicable, for any
reason during the applicable Restricted Period, all outstanding Phantom Units awarded the
Participant shall be automatically forfeited on such termination. The Committee may, in its
discretion, waive in whole or in part such forfeiture with respect to a Participant’s
Phantom Units.

     (iii) Lapse of Restrictions. At the time specified in the Award Agreement,
following the vesting of each Phantom Unit and subject to the provisions of Section 8(b),
the Participant shall be entitled to receive from the Company one Unit or cash equal to the
Fair Market Value of a Unit as of the vesting date, as determined by the Committee in its
discretion. To the extent the Award Agreement provides for a payment date of the Units or
cash in a tax year other than the tax year in which a Phantom Unit vests, the payment date
must be an otherwise eligible distribution date for nonqualified deferred compensation
arrangements in accordance with Code Section 409A. To the extent an Award Agreement is
silent as to the time following the vesting of each Phantom Unit cash or Units are to be
paid, payment will be made upon or as soon as reasonably practical following the vesting of
each Phantom Unit, subject to Section 8(b).

-7-

 

     (d) Restricted Units. The Committee shall have the authority to determine the
Employees, Consultants and Directors to whom Restricted Units shall be granted, the number of
Restricted Units to be granted to each such Participant, the Restricted Period, the conditions
under which the Restricted Units may become vested or forfeited, which may include, without
limitation, the accelerated vesting upon the achievement of specified performance goals or other
events, and such other terms and conditions as the Committee may establish with respect to such
Awards.

     (i) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that distributions made by the Partnership with respect to
the Restricted Units shall be subject to the same forfeiture and other restrictions as the
Restricted Unit and, if restricted, such distributions shall be held, without interest,
until the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the
same time, as the case may be. In addition, the Committee may provide that such
distributions be used to acquire additional Restricted Units for the Participant. Such
additional Restricted Units may be subject to such vesting and other terms as the Committee
may proscribe. Absent such a restriction on the UDRs in the Award Agreement, UDRs shall be
paid to the holder of the Restricted Unit without restriction.

     (ii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting with the Company and
its Affiliates or membership on the Board, whichever is applicable, for any reason during
the applicable Restricted Period, all outstanding Restricted Units awarded the Participant
shall be automatically forfeited on such termination. The Committee may, in its discretion,
waive in whole or in part such forfeiture with respect to a Participant’s Restricted Units.

     (iii) Lapse of Restrictions. Upon or as soon as reasonably practical following
the vesting of each Restricted Unit, subject to the provisions of Section 8(b), the
Participant shall be entitled to have the restrictions removed from his or her Unit
certificate so that the Participant then holds an unrestricted Unit.

     (e) Unit Awards. Unit Awards may be granted under the Plan to such Employees,
Consultants and/or Directors and in such amounts as the Committee, in its discretion, may select.

     (f) Other Unit-Based Awards. Other Unit-Based Awards may be granted under the Plan to
such Employees, Consultants and/or Directors as the Committee, in its discretion, may select. An
“Other Unit-Based Award” shall be an award denominated or payable in, valued in or otherwise based
on or related to Units, in whole or in part. The Committee shall determine the terms and
conditions of any such Other Unit-Based Award. Upon vesting, an Other Unit-Based Award may be paid
in cash, Common Units (including Restricted Units) or any combination thereof as provided by the
Committee.

     (g) General.

     (i) Awards May Be Granted Separately or Together. Except as provided below,
Awards may, in the discretion of the Committee, be granted either alone or in

-8-

 

addition to, in tandem with, or in substitution for any other Award granted under the
Plan or any award granted under any other plan of the Company or any Affiliate. Awards
granted in addition to or in tandem with other Awards or awards granted under any other plan
of the Company or any Affiliate may be granted either at the same time as or at a different
time from the grant of such other Awards or awards. Notwithstanding the foregoing, UARs may
not be granted in tandem with an Option.

     (ii) Limits on Transfer of Awards.

     (A) Except as provided in paragraph (C) below, each Award shall be exercisable
or payable only by or to the Participant during the Participant’s lifetime, or by
the person to whom the Participant’s rights shall pass by will or the laws of
descent and distribution.

     (B) Except as provided in paragraphs (A) and (C), no Award and no right under
any such Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company, the Partnership or any Affiliate.

     (C) To the extent specifically provided or approved by the Committee with
respect to an Award, an Award may be transferred by a Participant without
consideration to immediate family members or related family trusts, limited
partnerships or similar entities on such terms and conditions as the Committee may
from time to time establish.

     (iii) Term of Awards. The term of each Award shall be for such period as may
be determined by the Committee.

     (iv) Unit Certificates. All certificates for Units or other securities of the
Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations, and other requirements of the SEC, any
stock exchange upon which such Units or other securities are then listed, and any applicable
federal or state laws, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

     (v) Consideration for Grants. Awards may be granted for such consideration,
including services, as the Committee determines.

     (vi) Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any Award Agreement to the
contrary, if the Company is not reasonably able to obtain Units to deliver pursuant to such
Award without violating the rules or regulations of any applicable law or securities
exchange, no delivery shall occur until such time as the Committee, in good faith,
determines that the delivery of Units may be made without violating the rules or regulations
of any applicable law or securities exchange. No Units or other securities shall be
delivered pursuant to any Award until payment in full of any amount required to

-9-

 

be paid pursuant to the Plan or the applicable Award Agreement (including, without
limitation, any exercise price or tax withholding) is received by the Company.

     (vii) Change in Control, Similar Events. Upon the occurrence of a Change of
Control, any change in applicable law or regulation affecting the Plan or Awards thereunder,
or any change in accounting principles affecting the financial statements of the
Partnership, the Committee, in its sole discretion, without the consent of any Participant
or holder of the Award, and on such terms and conditions as it deems appropriate, may take
any one or more of the following actions in order to either prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under the Plan or an
outstanding Award or mitigate any unfavorable accounting consequences:

     (A) provide for either (i) the termination of any Award in exchange for an
amount of cash, if any, equal to the amount that would have been attained upon the
exercise of such Award or realization of the Participant’s rights (and, for the
avoidance of doubt, if as of the date of the occurrence of such transaction or event
the Committee determines in good faith that no amount would have been attained upon
the exercise of such Award or realization of the Participant’s rights, then such
Award may be terminated by the Company without payment) or (ii) the replacement of
such Award with other rights or property selected by the Committee in its sole
discretion;

     (B) provide that such award be assumed by the successor or survivor entity, or
a parent or subsidiary thereof, or be exchanged for similar options, rights or
awards covering the equity of the successor or survivor, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of equity interests
and prices;

     (C) make adjustments in the number and type of Units (or other securities or
property) subject to outstanding Awards, and in the number and kind of outstanding
Awards or in the terms and conditions of (including the exercise price), and the
vesting and performance criteria included in, outstanding Awards, or both;

     (D) provide that such Award shall be exercisable or payable, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

     (E) provide that the Award cannot be exercised or become payable after such
event, i.e., shall terminate upon such event.

     Notwithstanding the foregoing, with respect to an above event that is an “equity
restructuring” event that would be subject to a compensation expense pursuant FAS 123R if a
discretionary change is made, the provisions in Section 4(c) shall control to the extent
they are in conflict with the discretionary provisions of this Section 6.

-10-

 

     SECTION 7. Amendment and Termination. Except to the extent prohibited by applicable
law:

     (a) Amendments to the Plan. Except as required by the rules of the principal
securities exchange on which the Units are traded and subject to Section 7(b) below, the Board or
the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner, without
the consent of any member, Participant, other holder or beneficiary of an Award, or other Person.

     (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any
conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no
change, other than pursuant to Section 6(g)(vii) or, as determined by the Committee, in its sole
discretion, as being necessary or appropriate to comply with applicable law, including, without
limitation, Section 409A of the Code, in any Award shall materially reduce the benefit of a
Participant without the consent of such Participant.

     SECTION 8. General Provisions.

     (a) No Rights to Award. No Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each recipient.

     (b) Tax Withholding. The Company or any Affiliate is authorized to withhold from any
Award, from any payment due or transfer made under any Award or from any compensation or other
amount owing to a Participant the amount (in cash, Units, other securities or property, or Units
that would otherwise be issued or delivered pursuant to such Award) of any applicable taxes payable
in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any
payment or transfer under an Award or under the Plan and to take such other action as may be
necessary in the opinion of the Company to satisfy its withholding obligations for the payment of
such taxes.

     (c) No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Affiliate or to remain on
the Board or a Consultant, as applicable. Further, the Company or an Affiliate may at any time
dismiss a Participant from employment, free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or in any Award Agreement.

     (d) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Delaware law without regard to its conflict of laws principles.

     (e) Section 409A. This Plan is intended to meet or to be exempt from the requirements
of Section 409A of the Code and may be administered in a manner that is intended to meet those
requirements and will be construed and interpreted in accordance with such intent. All Awards
granted and payments hereunder will either be exempt from Section 409A of the Code or will be
subject to Section 409A of the Code and will be structured in a manner that will

-11-

 

meet the requirements of Section 409A of the Code, including regulations or other guidance
issued with respect thereto. Any provision of this Plan that would cause an Award or payment to
fail to satisfy Section 409A of the Code will be amended (in a manner that as closely as
practicable achieves the original intent of the Award) to comply with Section 409A of the Code on a
timely basis, which may be made on a retroactive basis, in accordance with regulations and other
guidance issued under Section 409A of the Code.

     (f) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award,
or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award and the remainder of the Plan and any such Award shall remain in full force and
effect.

     (g) Other Laws. The Committee may refuse to issue or transfer any Units or other
consideration under an Award if, in its sole discretion, it determines that the issuance or
transfer of such Units or such other consideration might violate any applicable law or regulation,
the rules of the principal securities exchange on which the Units are then traded, or result in
recoverable short-swing profits under Section 16(b) of the Exchange Act, and any payment tendered
to the Company by a Participant, other holder or beneficiary in connection with the exercise of
such Award shall be promptly refunded to the relevant Participant, holder or beneficiary.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any participating Affiliate and a Participant or any other Person. To the extent that
any Person acquires a right to receive payments from the Company or any participating Affiliate
pursuant to an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

     (i) No Fractional Units. No fractional Units shall be issued or delivered pursuant to
the Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Units or whether such fractional
Units or any rights thereto shall be canceled, terminated, or otherwise eliminated.

     (j) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (k) Facility Payment. Any amounts payable hereunder to any person under legal
disability or who, in the judgment of the Committee, is unable to properly manage his financial
affairs, may be paid to the legal representative of such person, or may be applied for the benefit
of such person in any manner which the Committee may select, and the Company shall be relieved of
any further liability for payment of such amounts.

-12-

 

     (l) Gender and Number. Words in the masculine gender shall include the feminine
gender, the plural shall include the singular and the singular shall include the plural.

     SECTION 9. Term of the Plan.

     The Plan shall become effective on the date of its approval by the Board and shall continue
until the earlier of the date terminated by the Board or the Committee or Units are no longer
available for Awards under the Plan. However, unless otherwise expressly provided in the Plan or
in an applicable Award Agreement, any Award granted prior to such termination, and the authority of
the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such
Award or to waive any conditions or rights under such Award, shall extend beyond such termination
date.

-13-exv10w6

 

EXHIBIT 10.6

MANAGEMENT SERVICES AGREEMENT

BY AND AMONG

QUEST ENERGY GP, LLC,

QUEST ENERGY PARTNERS, L.P.

AND

QUEST ENERGY SERVICE, LLC

[•], 2007

 

 

MANAGEMENT SERVICES AGREEMENT 

     THIS MANAGEMENT SERVICES AGREEMENT is made and entered into on, and effective as of, [•], 2007
(the “Agreement”), by and among Quest Energy GP, LLC, a Delaware limited liability company
(the “General Partner”), Quest Energy Partners, L.P., a Delaware limited partnership (the
“Partnership”), and Quest Energy Service, LLC, a Delaware limited liability company
(together with its permitted assignees, the “Manager” and, collectively with the General
Partner and the Partnership, the “Parties” and each, a “Party”).

RECITALS

     WHEREAS, the Partnership is the owner, directly or indirectly, of interests in the Business
(as hereinafter defined);

     WHEREAS, the Partnership Group (as hereinafter defined) requires certain services to operate
the Business and to fulfill other general and administrative functions relating to the management
of the Business; and

     WHEREAS, the Partnership Group desires to engage the Manager to provide such services and the
Manager is willing to undertake such engagement, subject to the terms and conditions of this
Agreement.

     NOW THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows:

ARTICLE I

DEFINITIONS

     SECTION 1.01 DEFINITIONS. Capitalized terms used, but not defined herein, shall have
the meanings given them in the Partnership Agreement. The following terms shall have the
respective meanings set forth below:

     “Acquisition” means any acquisition or series of acquisitions by the Partnership Group
of (i) all or substantially all of the interest in any company or business (whether by a purchase
of assets, purchase of stock, merger or otherwise) or (ii) any gas or oil properties or interests,
including any related assets, acquired after the date of this Agreement.

     “Acquisition Information” means any and all information provided by or on behalf of
the Manager to the Partnership in the performance of Acquisition Services.

     “Acquisition Services” means those Services in respect of potential and consummated
Acquisitions.

 

 

     “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by or is under common
control with, the Person in question. As used herein, the term “control” means the possession,
directly or indirectly, 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.

     “Agreement” is defined in the preamble.

     “Audit Right” is defined in Section 4.02 hereof.

     “Bankrupt” with respect to any Person means such Person shall generally be unable to
pay its debts as such debts become due, or shall so admit in writing or shall make a general
assignment for the benefit of creditors; or any Proceeding shall be instituted by or against such
Person seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under
any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee, or other similar official
for it or for any substantial part of its property and, in the case of any such Proceeding
instituted against it (but not instituted by it), shall remain undismissed or unstayed for a period
of 30 days; or such Person shall take any action to authorize any of the actions set forth above.

     “Board” means the Board of Managers of the General Partner.

     “Business” means the business of the Partnership Group, as now or hereafter conducted.

     “Business Day” means any day that is not a Saturday, Sunday or day on which banks are
authorized by law to close in the States of Oklahoma or New York.

     “Closing Date” means the date of the closing of the initial public offering, pursuant
to the Prospectus, of common units representing limited partnership interests in the Partnership.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Confidential Information” means information and records furnished by the Partnership
or the General Partner with respect to the Partnership Group, the Business and/or the Properties,
together with any reports, analyses, summaries, spreadsheets, evaluations, memoranda or other
documents prepared or generated by Manager or its consultants or agents on the basis of such
information, whether in written, graphic, electronic or any other format, to the extent such
information is of a nature that is customarily maintained as confidential and not disclosed by
publicly traded companies engaged in the oil and gas exploration and production business. Such
information includes, but is not limited to, seismic data, reserve reports, prospect analyses, and
privileged attorney-client communications. Confidential Information includes not only written or
other tangible information, but also information transferred orally, visually, electronically or by
any other means. Confidential Information does not include information that (i) is in or enters
the public domain without breach of this Agreement or (ii) the receiving Party lawfully receives
from a third party without restriction on disclosure and to the receiving Party’s knowledge without
breach of a nondisclosure obligation.

2

 

     “Damages” is defined in Section 9.01 hereof.

     “Force Majeure” means any cause beyond the reasonable control of a Party, including
the following causes (unless they are within such Party’s reasonable control): acts of God,
strikes, lockouts, acts of the public enemy, wars or warlike action (whether actual or impending),
arrests and other restraints of government (civil or military), blockades, embargoes,
insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, sabotage, tornadoes,
named tropical storms and hurricanes, floods, civil disturbances, terrorism, mechanical breakdown
of machinery or equipment, explosions, confiscation or seizure by any Governmental Authority and
any order of any Governmental Authority having jurisdiction.

     “G&A Services” means those general and administrative services necessary or useful for
the conduct of the business of the Partnership Group, including, but not limited to, accounting,
finance, tax, property management, risk management, land, marketing, legal and engineering.

     “General Partner” is defined in the preamble.

     “Governmental Authority” means any court or tribunal in any jurisdiction or any
federal, state, tribal, county, municipal or local government or other governmental body, agency,
authority, department, commission, board, bureau, instrumentality, arbitrator or arbitral body or
any quasi-governmental or private body lawfully exercising any regulatory or taxing authority.

     “Laws” means any applicable statute, common law, rule, regulation, code, judgment,
order, ordinance, writ, injunction or decree issued or promulgated by any Governmental Authority.

     “Manager” is defined in the preamble.

     “Manager Expenses” is defined in Section 5.01 hereof.

     “Manager Operating Party” is defined in Section 9.01 hereof.

     “Party” and “Parties” is defined in the preamble.

     “Partnership” is defined in the preamble.

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of the Partnership, as it may be amended, supplemented or restated from time to time.

     “Partnership Group” means the General Partner, the Partnership and all of their
respective Subsidiaries.

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

3

 

     “Proceedings” means all proceedings, actions, claims, suits and notices of
investigations by or before any arbitrator or Governmental Authority.

     “Properties” means the oil and gas properties now owned or hereafter acquired by the
Partnership or its Subsidiaries, including oil and gas leases, mineral interests, royalty
interests, overriding royalty interests, pipelines, flow lines, gathering lines, gathering systems,
pumps, compressors, dehydration units, separators, meters, injection facilities, salt water
disposal wells and facilities, plants, wells, downhole and surface equipment, fixtures,
improvements, easements, rights-of-way, surface leases, licenses, permits and other surface rights,
and other real or personal property appurtenant thereto or used in conjunction therewith.

     “Prospectus” means the final prospectus, dated [•], 2007, relating to the initial
public offering of common units representing limited partnership interests in the Partnership, as
filed with Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of
1933.

     “QRC” has the meaning set forth in the Partnership Agreement.

     “Services” is defined in Section 2.02 hereof.

     “Subsidiary” means, with respect to any Person, (i) a corporation of which more than
50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to
vote in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof; (ii) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof; or (iii) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (a) at least a
majority ownership interest or (b) the power to elect or direct the election of a majority of the
directors or other governing body of such Person.

     “Tax Authority” means any Governmental Authority having jurisdiction over the
assessment, determination, collection or imposition of any Tax.

     “Tax Return” means any report, return, election, document, estimated tax filing,
declaration or other filing provided to any Tax Authority, including any amendments thereto.

     “Taxes” means (i) all taxes, assessments, charges, duties, levies, imposts or other
similar charges imposed by a Governmental Authority, including all income, franchise, profits,
capital gains, capital stock, transfer, gross receipts, sales, use, transfer, service, occupation,
excise, severance, ad valorem, windfall profits, premium, stamp, license, payroll, employment,
social security, unemployment, disability, environmental (including taxes under Code section 59A),
alternative minimum, add-on, value-added, withholding and other taxes, assessments, charges,

4

 

duties, levies, imposts or other similar charges of any kind whatsoever (whether payable
directly or by withholding and whether or not requiring the filing of a Tax Return), and all
estimated taxes, deficiency assessments, additions to tax, additional amounts imposed by any
Governmental Authority, penalties and interest, but excluding any and all taxes based on net
income, net worth, capital or profit; (ii) any liability for the payment of any amount of the type
described in the immediately preceding clause (i) as a result of being a member of a consolidated,
affiliated, unitary, combined, or similar group with any other corporation or entity at any time on
or prior to the Closing Date and (iii) any liability for the payment of any amount of the type
described in the preceding clauses (i) or (ii) whether as a result of contractual obligations to
any other Person or operation of law.

     “Third Party” means any Person other than the Partnership or the Manager, or any of
their respective Affiliates, or any partner of the Partnership.

     SECTION 1.02 OTHER DEFINITIONS. Other terms defined herein have the meanings so given
them.

     SECTION 1.03 CONSTRUCTION. Unless the context requires otherwise: (i) the singular
form of nouns, pronouns and verbs include the plural and vice-versa; (ii) the terms “include,”
“includes” and “including” and words of like import will be deemed to be followed by the words
“without limitation”; and (iii) the terms “hereof,” “herein” and “hereunder” refer to this
Agreement as a whole and not to any particular provision of this Agreement.

ARTICLE II

RETENTION OF THE MANAGER; SCOPE OF SERVICES

     SECTION 2.01 RETENTION OF THE MANAGER. The Partnership hereby engages the Manager to
perform the Services, as directed by the General Partner, and to provide all personnel and any
facilities, goods and equipment not otherwise provided by the Partnership Group necessary to
perform the Services. The Manager hereby accepts such engagement and agrees to perform the
Services requested by the General Partner and to provide any personnel, facilities, goods and
equipment not otherwise provided by the Partnership Group, and to provide all employees as may be
reasonable and necessary to perform the Services, it being understood that the Partnership shall
provide all field-level personnel and first line supervisors.

     SECTION 2.02 SCOPE OF SERVICES. The services shall consist of such services as the
General Partner determines may be reasonable and necessary to operate the Business, including,
without limitation, any G&A Services, those services described on Schedule I hereto and such other
services as the Parties may agree upon from time to time (the “Services”).

     SECTION 2.03 EXCLUSION OF SERVICES. The General Partner may temporarily or
permanently exclude any particular service from the scope of the Services upon 90 days’ notice to
the Manager.

5

 

ARTICLE III

STANDARD OF CARE

     SECTION 3.01 STANDARD OF CARE. The Manager shall perform the Services in an honest
and good faith manner, with that degree of care, diligence and skill that a reasonably prudent
advisor and manager would exercise in comparable circumstances, and in compliance with applicable
Laws, contracts, leases, orders, security instruments and other agreements to which the Partnership
is a party or by which the Partnership or any of its Properties are bound.

     SECTION  3.02 PROTECTION FROM LIENS. In the course of providing the Services, the
Manager shall not permit any liens, encumbrances or charges upon any of the Properties arising from
the provision of Services or materials under this Agreement except as approved, or consented to, by
the Partnership.

     SECTION  3.03 PROCUREMENT OF GOODS AND SERVICES BY AFFILIATES AND THIRD PARTIES.

     (a) The Parties hereby agree that in discharging its obligations hereunder, the Manager may
engage any of its Affiliates or any qualified Third Party to perform the Services (or any part of
the Services) on its behalf and that the performance of the Services (or any part of the Services)
by any such Affiliate or Third Party shall be treated as if the Manager performed such Services
itself. Notwithstanding the foregoing, nothing contained herein shall relieve the Manager of its
obligations hereunder.

     (b) The Parties hereby agree that the Manager shall be entitled to arrange for contracts with
Third Parties for goods in connection with the provision of the Services; provided, that
the Manager shall use commercially reasonable efforts (i) to obtain such goods at rates competitive
with those otherwise generally available in the area in which materials are to be furnished and
(ii) to obtain from such Third Parties such customary warranties and guarantees as may be
reasonably required with respect to the goods so furnished.

     SECTION 3.04 INTELLECTUAL PROPERTY.

     (a) Any (i) inventions, whether patentable or not, developed or invented, or (ii)
copyrightable material (and the intangible rights of copyright therein) developed, by the Manager,
its Affiliates or its or their employees in connection with the performance of the Services shall
be the property of the Manager; provided, however, that the Partnership Group shall
be granted an irrevocable, royalty-free, non-exclusive and non-transferable right and license to
use such inventions or material; and further provided, however, that the
Partnership Group shall only be granted such a right and license to the extent such grant does not
conflict with, or result in a breach, default, or violation of a right or license to use such
inventions or material granted to the Manager by any Person other than an Affiliate of the Manager.
Notwithstanding the foregoing, the Manager will use all commercially reasonable efforts to grant
such right and license to the Partnership Group.

6

 

     (b) The General Partner and the Partnership hereby grant to the Manager and its Affiliates an
irrevocable, royalty-free, non-exclusive and non-transferable right and license to use, during the
term of this Agreement, any intellectual property provided by the Partnership Group to the Manager
or its Affiliates, but only to the extent such use is necessary for the performance of the
Services. The Manager agrees that it and its Affiliates will utilize such intellectual property
solely in connection with the performance of the Services.

     (c) If the Manager uses or licenses intellectual property owned by Third Parties in the
performance of the Services, the Manager shall obtain and maintain any such licenses and
authorizations necessary to authorize its use of such intellectual property in connection with the
Services.

     SECTION 3.05 MANAGER INFORMATION. It is contemplated by the Parties that, during the
term of this Agreement, the Partnership Group will be required to provide certain notices,
information and data necessary for the Manager to perform the Services and its obligations under
this Agreement. The Manager shall be permitted to rely on any information or data provided by the
Partnership Group to the Manager in connection with the performance of its duties and provision of
Services under this Agreement, except to the extent that the Manager has actual knowledge that such
information or data is inaccurate or incomplete.

     SECTION 3.06 APPOINTMENT OF INDEPENDENT ACCOUNTING FIRM AND INDEPENDENT PETROLEUM
ENGINEER. Notwithstanding anything to the contrary in this Agreement, the Parties hereby
recognize and agree that the General Partner shall have the exclusive authority to appoint an
independent accounting firm to audit the financial statements of the Partnership and an independent
petroleum engineer to provide reports to the Partnership relating to estimates of proved reserves
for Securities and Exchange Commission and other reporting purposes.

     SECTION 3.07 COMMINGLING OF ASSETS. To the extent the Manager shall have charge or
possession of any of the Partnership’s assets in connection with the provision of the Services, the
Manager shall separately maintain, and not commingle, the assets of the Partnership with those of
the Manager or any other Person.

     SECTION  3.08 INSURANCE. The Manager shall obtain and maintain during the term of
this Agreement, from insurers who are reliable and acceptable to the Partnership and authorized to
do business in the state or states or jurisdictions in which Services are to be performed by the
Manager, insurance coverages in the types and minimum limits as the Parties determine to be
appropriate and as is consistent with standard industry practice. The Manager agrees upon the
Partnership’s request from time to time or at any time to provide the Partnership with certificates
of insurance evidencing such insurance coverage and, upon request of the Partnership, shall furnish
copies of such policies. Except with respect to workers’ compensation coverage, the policies shall
name the Partnership as an additional insured and shall contain waivers by the insurers of any and
all rights of subrogation to pursue any claims or causes of action against the Partnership. The
policies shall provide that they will not be cancelled or reduced without giving the Partnership at
least 30 days’ prior written notice of such cancellation or reduction.

7

 

ARTICLE IV

BOOKS, RECORDS AND REPORTING

     SECTION 4.01 BOOKS AND RECORDS. The Manager shall maintain accurate books and records
regarding the performance of the Services and its calculation of the Manager Expenses, and shall
maintain such books and records for the period required by applicable accounting practices or Law.

     SECTION 4.02 AUDITS. At any time during the term of this Agreement, the Partnership
shall have the right to review and, at the Partnership’s expense, to copy the books and records
maintained by the Manager relating to the Services. In addition, to the extent necessary to verify
the performance by the Manager of its obligations under this Agreement, the Partnership shall have
the right, at the Partnership’s expense, to audit, examine and make copies of or extracts from the
books and records of Partnership’s (the “Audit Right”). The Partnership may exercise the
Audit Right through such auditors as the Partnership may determine in its sole discretion. The
Partnership shall (i) exercise the Audit Right only upon reasonable written notice to the Manager
and during normal business hours and (ii) use its reasonable efforts to conduct the Audit Right in
such a manner as to minimize the inconvenience and disruption to the Manager.

     SECTION 4.03 REPORTS. The Manager shall prepare and deliver to the Partnership any
reports provided for in this Agreement and such other reports as the Partnership may reasonably
request from time to time regarding the performance of the Services.

ARTICLE V

MANAGER REIMBURSEMENT; CONTINUING OBLIGATIONS

     SECTION 5.01 MANAGER EXPENDITURES. The Manager shall on a monthly basis invoice the
Partnership with respect to any Services provided by the Manager hereunder during such month, plus
or minus any adjustment necessary to correct prior estimated billings to actual billings, the
general, administrative and similar allocable overhead costs, as well as any costs of services or
goods purchased from Third Parties, incurred by the Manager in the performance of such Services
(the “Manager Expenses”). Subject to Section 5.05 hereof, all invoices shall be due and
payable, in the manner provided in Section 5.03 below, within three days after receipt of each
invoice. The Manager Expenses shall be charged to the Partnership without mark-up, interest or
other profit to the Manager or its Affiliates. Should the Manager commence providing Acquisition
Services with respect to a particular project, the Partnership shall reimburse the Manager for all
Manager Expenses incurred in connection with such Acquisition Services to the extent related to
such project regardless of whether the Partnership completes such Acquisition. As used herein,
“Manager Expenses” include all costs and expenses which are expressly designated elsewhere in this
Agreement as the Partnership’s, together with the following:

     (a) costs of legal, tax, accounting, consulting, auditing, administrative and other similar
services rendered for the Partnership by providers retained by the Manager or provided by the
employees of the Manager or its Affiliates;

8

 

     (b) the compensation and expenses of the Board and the cost of liability insurance to
indemnify the General Partner’s directors and officers;

     (c) costs associated with the establishment and maintenance of any credit facilities and other
indebtedness of the Partnership or its Subsidiaries (including commitment fees, accounting fees,
legal fees, closing and other costs) or any securities offerings of the Partnership or its
Subsidiaries;

     (d) expenses connected with communications to holders of securities of the Partnership or its
Subsidiaries and other bookkeeping and clerical work necessary in maintaining relations with
holders of such securities and in complying with the continuous reporting and other requirements of
governmental bodies or agencies, including, without limitation, all costs of preparing and filing
required reports with the Securities and Exchange Commission, the costs (including transfer agent
and registrar costs) in connection with the listing and/or trading of the Partnership’s securities
on any exchange or inter-dealer quotation system, the fees to any such exchange or inter-dealer
quotation system in connection with its listing, costs of complying with the rules, regulations or
policies of such exchange or inter-dealer quotation system, costs of preparing, printing and
mailing the Partnership’s annual report to its unitholders and proxy materials with respect to any
meeting of the unitholders of the Partnership;

     (e) the allocable costs associated with any computer software or hardware, electronic
equipment or purchased information technology services from Third Party vendors that is used for
the Partnership;

     (f) expenses incurred by managers, officers, employees and agents of the Manager and its
Affiliates for travel on the Partnership’s behalf and other out-of-pocket expenses;

     (g) the costs of maintaining compliance with all applicable Laws;

     (h) all Taxes and license fees;

     (i) all insurance costs incurred in connection with the operation of the Business;

     (j) expenses relating to any office(s) or office facilities, including but not limited to
disaster backup recovery sites and facilities, maintained for the Partnership separate from the
office or offices of the Manager;

     (k) expenses connected with the payments of interest, dividends or distributions in cash or
any other form authorized or caused to be made by the Board to or on account of the holders of
securities of the Partnership or its Subsidiaries, including, without limitation, in connection
with any dividend reinvestment plan;

     (l) any judgment or settlement of pending or threatened Proceedings (whether civil, criminal
or otherwise) against the Partnership or any Subsidiary, or against any trustee, director, manager
or officer of the Partnership or of any Subsidiary in his or her capacity as such for which the
Partnership or any Subsidiary is required to indemnify such trustee, director, manager or officer
by any Governmental Authority, or settlement of pending or threatened Proceedings or by the
Partnership Agreement;

9

 

     (m) the allocable portion of salaries and other compensation, rent, telephone, utilities,
office furniture, equipment, machinery and other office, internal and overhead expenses of the
Manager and its Affiliates required for, and based on the percentage of time spent by personnel of
the Manager and its Affiliates on, the Partnership’s operations (provided, that the allocation of
compensation expense shall be determined based on the Manager’s good faith estimate of the value of
each Person’s services performed on the Partnership’s business and affairs, subject to the periodic
review and approval of the Board); and

     (n) all other expenses actually incurred by the Manager or its Affiliates which are reasonably
necessary for the performance by the Manager of its duties and functions under this Agreement.

     The provisions of this Section 5.01 shall survive the expiration or earlier termination of
this Agreement to the extent such expenses have previously been incurred or are incurred in
connection with such expiration or termination.

     SECTION 5.02 REPORTING. On or before the 15th day following each month during the
term hereunder, the Manager shall provide the Partnership with a summary of the invoices for the
aggregate Manager Expenses relating to such month. The Manager’s summary shall also provide
reasonably detailed documentation supporting such Manager Expenses.

     SECTION 5.03 MANNER OF PAYMENT. All payments required under this Article V shall be
made (i) by wire of immediately available funds (such designation to be made by the Manager at
least two Business Days prior to the date the Manager Expenses become payable under Section 5.01
hereof) or (ii) by check pursuant to the address set forth in Section 12.01(b) hereof.

     SECTION 5.04 TAXES. The Partnership shall be responsible for all applicable Taxes
levied on items, goods or services that are sold, purchased or obtained pursuant to this Agreement,
including the Services.

     SECTION 5.05 DISPUTED CHARGES. THE PARTNERSHIP MAY, WITHIN 60 DAYS AFTER RECEIPT OF A
CHARGE FROM THE MANAGER, TAKE WRITTEN EXCEPTION TO SUCH CHARGE, ON THE GROUND THAT THE SAME WAS NOT
A REASONABLE COST INCURRED BY THE MANAGER IN CONNECTION WITH THE SERVICES. THE PARTNERSHIP SHALL
NEVERTHELESS PAY THE MANAGER IN FULL WHEN DUE THE FULL INVOICED AMOUNT. SUCH PAYMENT SHALL NOT BE
DEEMED A WAIVER OF THE RIGHT OF THE PARTNERSHIP TO RECOUP ANY CONTESTED PORTION OF ANY AMOUNT SO
PAID. HOWEVER, IF THE AMOUNT AS TO WHICH SUCH WRITTEN EXCEPTION IS TAKEN, OR ANY PART THEREOF, IS
ULTIMATELY DETERMINED NOT TO BE A REASONABLE COST INCURRED BY THE MANAGER IN CONNECTION WITH ITS
PROVIDING THE SERVICES HEREUNDER, SUCH AMOUNT OR PORTION THEREOF (AS THE CASE MAY BE) SHALL BE
REFUNDED BY THE MANAGER TO THE PARTNERSHIP TOGETHER WITH INTEREST THEREON AT THE LESSER OF THE
PRIME RATE PER ANNUM APPEARING IN THE “MONEY RATES” SECTION OF THE WALL STREET JOURNAL FROM TIME TO
TIME OR THE MAXIMUM LAWFUL RATE DURING THE PERIOD FROM THE DATE OF PAYMENT BY THE PARTNERSHIP TO
THE DATE OF REFUND BY THE MANAGER.

10

 

     SECTION 5.06 SET OFF. In the event that the Manager owes the Partnership a sum
certain in an uncontested amount under any other agreement, then any such amounts may be aggregated
and the Partnership and the Manager may discharge their obligations by netting those amounts
against any amounts owed by the Partnership to the Manager under this Agreement. If the
Partnership or the Manager owes the other Party a greater aggregate amount, that Party may pay to
the other Party the difference between the amounts owed.

     SECTION 5.07 MANAGER EMPLOYEES. The obligations under Sections 5.01 and 5.03, to the
extent they relate to Services provided by employees of the Manager or its Affiliates, shall be
limited to payment to the Manager for expenses in connection with its or its Affiliates’ employees
engaged in the provision of Services hereunder, and the Partnership shall not be obligated to pay
to the Manager’s or its Affiliates’ employees directly any compensation, salaries, wages, bonuses,
benefits, social security taxes, workers’ compensation insurance, retirement and insurance
benefits, training and other such expenses; provided, however, that the Partnership
may, at its option, compensate such employees under one or more equity-based incentive compensation
plans for the provision of Services hereunder; and provided further,
however, that if the Manager fails to pay any employee, with the exception of employee
claims for amounts owed that the Manager disputes in good faith, within 30 days of the date such
employee’s payment is due:

     (a) the Partnership may (i) pay such employee directly, (ii) employ such employee directly,
(iii) notify the Manager and begin to pay all employees providing service to the Partnership
directly or (iv) notify the Manager that this Agreement is terminated and employ all employees
directly; and

     (b) the Manager shall reimburse the Partnership, as the case may be, the amount the
Partnership paid to the Manager for employee services that the Manager did not pay to any such
employee.

ARTICLE VI

FORCE MAJEURE

     A Party’s obligation under this Agreement shall be excused when and to the extent its
performance of that obligation is prevented due to Force Majeure; provided,
however, that a Party shall not be excused by Force Majeure from any obligation to pay
money. The Party that is prevented from performing its obligation by reason of Force Majeure shall
promptly notify the other Parties of that fact and shall exercise due diligence to end its
inability to perform as promptly as practicable. Notwithstanding the foregoing, a Party is not
required to settle any strike, lockout or other labor dispute in which it may be involved;
provided, however, that, in the event of a strike, lockout or other labor dispute
affecting the Manager, the Manager shall use reasonable efforts to continue to perform all
obligations hereunder by utilizing its management personnel and that of its Affiliates.

11

 

ARTICLE VII

ASSIGNMENTS AND SUBCONTRACTS

     SECTION 7.01 ASSIGNMENTS.

     (a) Without the prior consent of the Manager, none of the Partnership or the other members or
the Partnership Group may sell, transfer or convey any of its rights, or delegate any of its
obligations, under this Agreement to any Person; provided, however, that the
Partnership, without the consent of the Manager, may assign this Agreement to a Person which is a
successor to the Partnership (by merger, consolidation or purchase of all or substantially all of
its assets), in which case such successor organization shall be bound under this Agreement and by
the terms of such assignment in the same manner as the Partnership is bound under this Agreement.
The Partnership shall notify the Manager of any such assignment, but the failure to give such
notice will not affect the validity of the assignment.

     (b) Without the prior consent of the Partnership, the Manager may not sell, assign, transfer
or convey any of its rights, or delegate any of its obligations, under this Agreement to any
Person, other than the delegation of performance of Services to an Affiliate of the Manager or a
qualified Third Party as permitted by Section 3.03(a) hereof and the sale, assignment, transfer or
conveyance of its rights hereunder to any such Affiliate.

     Any attempted assignment in violation of this Section 7.01 shall be void.

     SECTION  7.02 OTHER REQUIREMENTS. Subject to the other provisions hereof:

     (a) in rendering the Services, the Manager shall not discriminate against any employee or
applicant for employment because of race, creed, color, religion, sex, national origin, age or
handicap, and shall comply with all applicable provisions of Executive Order 11246 of September 24,
1965, and any successor order thereto; and

     (b) the Manager agrees to exercise reasonable diligence to ensure that, during the term of
this Agreement, it shall not employ unauthorized aliens as defined in the Immigration Reform and
Control Act of 1986, or any successor law.

ARTICLE VIII

CONFIDENTIAL INFORMATION

     SECTION 8.01 NONDISCLOSURE. The Manager shall maintain the confidentiality of all
Confidential Information; provided, however, that the Manager may disclose such
Confidential Information (i) to its Affiliates to the extent deemed by the Manager to be reasonably
necessary or desirable to enable such Affiliates to perform the Services; (ii) in any judicial or
alternative dispute resolution Proceeding to resolve disputes between the Manager and the
Partnership arising hereunder; (iii) to the extent disclosure is legally required under

12

 

applicable Laws or any agreement to which the Manager is a party or by which it is bound;
provided, however, that prior to making any legally required disclosures in any
judicial, regulatory or dispute resolution Proceeding, the Manager shall, if requested by the
Partnership, seek a protective order or other relief to prevent or reduce the scope of such
disclosure; (iv) to the Manager’s existing or potential lenders, investors, joint interest owners,
purchasers or other parties with whom the Manager may enter into contractual relationships, to the
extent deemed by the Manager to be reasonably necessary or desirable to enable it to perform the
Services; provided, however, that the Manager shall require such Third Parties to
agree to maintain the confidentiality of the Confidential Information so disclosed; (v) if
authorized by the Partnership and (vi) to the extent such Confidential Information becomes publicly
available other than through a breach by the Manager of its obligation arising under this Section
8.01. The Manager acknowledges and agrees that the Confidential Information is being furnished to
the Manager for the sole and exclusive purpose of enabling it to perform the Services, and the
Confidential Information may not be used by it for any other purpose.

     SECTION 8.02 PERMITTED DISCLOSURE. Notwithstanding the foregoing, each Party may
disclose Confidential Information (i) to the extent required by a court of competent jurisdiction
or other governmental authority or otherwise as required by law, including, without limitation,
disclosure obligations imposed under the federal securities laws, provided that such Party has
given such other Party prior notice of such requirement when legally permissible to permit such
other Party to take such legal action to prevent the disclosure as it deems reasonable, appropriate
or necessary or (ii) to its consultants, legal counsel, Affiliates, accountants, banks and other
financing sources and their advisors, provided that it shall require such Third Parties to agree to
maintain the confidentiality of the Confidential Information so disclosed.

     SECTION 8.03 ACQUISITION INFORMATION.

     (a) Except as provided in Section 8.03(b) below, the Partnership shall maintain the
confidentiality of all Acquisition Information. The Partnership acknowledges and agrees that the
Acquisition Information is being furnished to the Partnership for the sole and exclusive purpose of
enabling it to make Acquisitions, and the Acquisition Information may not be used by it for any
other purpose.

     (b) The Partnership may disclose such Acquisition Information (i) to third party advisors of
the Partnership to the extent deemed by the Partnership to be reasonably necessary or desirable to
enable it to evaluate or consummate an Acquisition; (ii) in any judicial or alternative dispute
resolution Proceeding to resolve disputes between the Partnership and the Manager arising
hereunder; (iii) to the extent disclosure is legally required under applicable Laws or any
agreement to which the Partnership is a party or by which it is bound; provided,
however, that prior to making any legally required disclosures in any judicial, regulatory
or dispute resolution Proceeding, the Partnership shall, if requested by the Manager, seek a
protective order or other relief to prevent or reduce the scope of such disclosure; (iv) to the
Partnership’s existing or potential lenders, investors, joint interest owners, purchasers or other
parties with whom the Partnership may enter into contractual relationships, to the extent deemed by
the Partnership to be reasonably necessary or desirable to enable it to evaluate or consummate the
related

13

 

Acquisition; provided, however, that the Partnership shall require such Person
to agree to maintain the confidentiality of the Acquisition Information so disclosed; (v) if
authorized by the Manager and (vi) to the extent such Acquisition Information becomes publicly
available other than through a breach by the Partnership of its obligation arising under
Section 8.03(a) above.

     SECTION 8.04 REMEDIES AND ENFORCEMENT. Each of the Manager and the Partnership Group
acknowledges and agrees that a breach by it of its respective obligations under this Article VIII
would cause irreparable harm to the Party whose Confidential Information is disclosed and that
monetary damages would not be adequate to compensate such Party. Accordingly, each of the Manager
and the Partnership Group agrees that the Party whose Confidential Information is disclosed shall
be entitled to immediate equitable relief, including a temporary or permanent injunction, to
prevent any threatened, likely or ongoing breach of this Article VIII, without the necessity of
posting bond or other security. The right to equitable relief shall be in addition to other rights
and remedies available to the Party whose Confidential Information is disclosed, for monetary
damages or otherwise.

ARTICLE IX

INDEMNIFICATION; LIMITATIONS

     SECTION 9.01 LIMITATION OF THE MANAGER’S LIABILITY; INDEMNIFICATION. Neither the
Manager nor any of its controlling persons, directors, managers, officers, employees, agents and
permitted assigns (each, a “Manager Operating Party”) shall have any liability to the
Partnership Group for any losses, damages (including, but not limited to, special, indirect,
punitive and/or consequential damages), claims, injury, liability, cost or expense
(“Damages”) arising out of this Agreement, whether such Damages arise on account of the
furnishing of Services hereunder, the failure to furnish Services hereunder, or otherwise, and
whether or not such Damages were caused by the negligence of the Manager Operating Party, including
the Manager Operating Party’s sole negligence; provided, however, that the
foregoing limitation shall not apply to Damages caused by the Manager Operating Party’s gross
negligence or willful misconduct.

     SECTION 9.02 PARTNERSHIP’S INDEMNITY. The Partnership agrees to indemnify, defend and
hold harmless each Manager Operating Party from and against any and all Damages arising out of this
Agreement, whether such Damages arise on account of the furnishing of Services hereunder, the
failure to furnish Services hereunder, or otherwise, and whether or not such Damages were caused by
the negligence of any Manager Operating Party, including the Manager Operating Party’s sole
negligence; provided, however, that the foregoing limitation shall not apply to
Damages caused by the Manager Operating Party’s gross negligence or willful misconduct.

     SECTION 9.03 LIMITATION OF DAMAGES. If the Partnership Group suffers Damages arising
out of this Agreement, which Damages were caused by the gross negligence or willful misconduct of
the Manager, the Manager’s sole liability to the Partnership Group shall be to properly perform the
Services in question at no additional cost to the Partnership Group and to pay the Partnership
Group for any and all direct damages suffered by the Partnership Group.

14

 

Notwithstanding anything to the contrary contained herein or at Law and in equity, in no event
shall the Manager be liable for punitive, special, indirect, incidental or consequential damages
(including, without limitation, damages for loss of business profits, business interruption or any
other loss) arising from or relating to any claim made under this Agreement or regarding the
provision of or the failure to provide Services, even if the Manager had been advised or was aware
of the possibility of such damages.

     SECTION 9.04 AFFILIATE; THIRD PARTIES. If the Manager uses the personnel of its
Affiliates or Third Parties to provide Services, the Manager shall be responsible for the acts and
omissions of such personnel and Third Parties to the extent provided in this Agreement, and no
Affiliate of the Manager or Third Party shall have any liability to the Partnership Group on
account of any Damages suffered by the Partnership Group arising out of this Agreement, whether or
not such Damages were caused by their negligence and/or gross negligence, including their sole
negligence and/or sole gross negligence, or their willful misconduct.

ARTICLE X

TERMINATION

     SECTION 10.01 TERMINATION BY THE PARTNERSHIP ON BEHALF OF THE PARTNERSHIP GROUP.

     (a) The Partnership, on behalf of the Partnership Group, may terminate this Agreement, upon
any of the following:

     (i) without cause, upon 180 days’ prior written notice to the Manager;
provided, however, that the Partnership shall not have the right to
terminate this Agreement pursuant to this Section 10.01(a)(i) so long as QRC or its
Affiliates maintains a direct or indirect controlling interest in the General Partner; or

     (ii) upon the Manager’s material breach of this Agreement, if (a) such breach is not
remedied within 60 days after the Manager’s receipt of the Partnership’s written notice
thereof, or such longer period as is reasonably required to cure such breach, provided that
the Manager commences to cure such breach within such 60-day period and proceeds with due
diligence to cure such breach and (b) such breach is continuing at the time notice of
termination is delivered to the Manager.

     (b) In the event that the Manager becomes Bankrupt or dissolves and commences liquidation or
winding-up, this Agreement shall automatically terminate without notice to the Manager.

     SECTION 10.02 TERMINATION BY THE MANAGER. The Manager may terminate this Agreement
upon any of the following:

     (a) without cause, upon 180 days’ prior written notice to the Partnership; provided,
however, that the Manager shall not have the right to terminate this Agreement pursuant to
this

15

 

Section 10.02(a) so long as QRC or its Affiliates maintains a direct or indirect controlling
interest in the General Partner; or

     (b) upon the Partnership’s material breach of this Agreement, if such (a) breach is not
remedied within 60 days (or 30 days in the event of material breach arising out of a failure to
make payment hereunder) after the Partnership’s receipt of the Manager’s written notice thereof, or
such longer period as is reasonably required to cure such breach, provided that the Partnership
commences to cure such breach within such 60-day or 30-day period, as applicable, and proceeds with
due diligence to cure such breach and (b) such breach is continuing at the time notice of
termination is delivered to the Partnership.

     SECTION 10.03 EFFECT OF TERMINATION. If this Agreement is terminated in accordance
with Section 10.01 or 10.02 above, all rights and obligations under this Agreement shall cease
except for (a) obligations that expressly survive termination of this Agreement; (b) liabilities
and obligations that have accrued prior to such termination, including the obligation to pay any
amounts that have become due and payable prior to such termination and (c) the obligation to pay
any portion of the Manager Expenses that has accrued prior to such termination, even if such
portion has not become due and payable at that time.

ARTICLE XI

DISPUTE RESOLUTION

     If the Parties are unable to resolve any dispute regarding the validity or terms of this
Agreement or its termination, service or performance issues, there is a material breach of this
Agreement that has not been corrected within 30 days of receipt of notice of such breach or any
other dispute among the Parties related to this Agreement, any Party hereto may refer the matter to
an arbitrator selected in accordance with the rules of the American Arbitration Association in
Dallas, Texas as the exclusive remedy for any such dispute, and in lieu of any court action, which
is hereby waived. The only exception shall be a claim by any Party for injunctive relief pending
arbitration.

ARTICLE XII

MISCELLANEOUS

     SECTION 12.01 NOTICES. All notices or other communications required or permitted to
be given hereunder shall be in writing and shall be given by (i) personal delivery; (ii) delivery
by reputable overnight courier; (iii) delivery by confirmed facsimile transmission or (iv) delivery
by registered or certified mail, postage prepaid, with return receipt requested. Notice given by
mail, overnight courier or personal delivery shall be effective upon actual receipt. Notice given
by facsimile shall be effective upon confirmation of a successful transmission. All notices to be
sent to a Party pursuant to this Agreement shall be sent to or made at the address, in each case as
follows:

16

 

	 	(a)	 	If to the General Partner or the Partnership:

Quest Energy GP, LLC

[9520 N. May Avenue, Suite 300]

Oklahoma City, OK [73120]

Attention: [•]

Telecopy: (405) 840-9897

	 	(b)	 	If to the Manager:

Quest Energy Service, LLC

[9520 N. May Avenue, Suite 300]

Oklahoma City, OK [73120]

Attention: [•]

Telecopy: (405) 840-9897

     Any Party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this Section 12.01 for the
giving of notice.

     SECTION 12.02 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure
to the benefit of the Parties hereto and their respective successors and permitted assigns as
provided in this Agreement.

     SECTION 12.03 ENTIRE AGREEMENT; AMENDMENT. This Agreement, along with the Schedule
hereto, contains the entire agreement and understanding among the Parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings relating to such
subject matter. This Agreement may not be modified or amended except by an instrument in writing
signed on behalf of each of the Parties hereto.

     SECTION 12.04 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF DELAWARE.

     SECTION 12.05 WAIVER; CUMULATIVE REMEDIES. No failure to exercise and no delay in
exercising, on the part of any Party hereto, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law. No
waiver of any provision hereto shall be effective unless it is in writing and is signed by the
Party asserted to have granted such waiver.

     SECTION 12.06 NO JOINT VENTURE. Nothing in this Agreement shall be construed to
create a partnership or joint venture, nor to authorize any Party to act as agent for, or

17

 

representative of, another Party. Each Party shall be deemed an independent contractor and no
Party shall act as, or hold itself out as acting as, agent for another Party.

     SECTION 12.07 COSTS AND EXPENSES. Each Party hereto shall bear its own costs and
expenses (including the fees and disbursements of counsel and accountants) incurred in connection
with the negotiations and preparation of and the closing under this Agreement and all matters
incident thereto.

     SECTION 12.08 HEADINGS. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed part of this Agreement.

     SECTION 12.09 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any Party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts of this Agreement, individually or
taken together, shall bear the signatures of all of the Parties reflected hereon as the
signatories.

     SECTION 12.10 SEVERABILITY. In the event any provision of this Agreement, or the
application of such provision to any person or set of circumstances, shall be determined to be
invalid, unlawful or unenforceable to any extent for any reason, the remainder of this Agreement,
and the application of such provision to Persons or circumstances other than those as to which it
is determined to be invalid, unlawful or unenforceable, shall not be affected and shall continue to
be enforceable to the fullest extent permitted by Law.

     SECTION 12.11 JOINTLY DRAFTED. This Agreement, and all the provisions of this
Agreement, shall be deemed drafted by each of the Parties hereto and shall not be construed against
any Party on the basis of that Party’s role in drafting this Agreement.

     SECTION 12.12 NO THIRD-PARTY BENEFICIARIES. Except as provided in Article VIII, this
Agreement is for the sole benefit of the Parties hereto and their permitted assigns and nothing
herein expressed or implied shall provide any benefit to any Third Party or entitle any Third Party
to any claim, cause of action, remedy or right of any kind, it being the intent of the Parties
hereto that this Agreement shall not be construed as a Third Party beneficiary contract.

     SECTION 12.13 FURTHER ASSURANCES. In connection with this Agreement, each Party
hereto shall execute and deliver any additional documents and instruments and perform any
additional acts that may be necessary or appropriate to effectuate and perform the provisions of
this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

18

 

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 	 	 
	 	 	QUEST ENERGY GP, LLC,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Name: Jerry D. Cash	 	 
	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	QUEST ENERGY PARTNERS, L.P.,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: QUEST ENERGY GP, LLC, its general partner,
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	 	 	Name: Jerry D. Cash	 	 
	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	QUEST ENERGY SERVICE, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Name: [NAME]	 	 
	 	 	Title: [TITLE]	 	 

 

 

SCHEDULE I

SERVICES PROVIDED BY THE MANAGER

TO THE PARTNERSHIP GROUP

	 	 	 	 	 
	 	1.	 	 	Accounting

	 	 	 	 	 

	 	2.	 	 	Information Technology/Communications Equipment and Services

	 	 	 	 	 

	 	3.	 	 	Real Property/Land

	 	 	 	 	 

	 	4.	 	 	Legal

	 	 	 	 	 

	 	5.	 	 	Securities and Exchange Commission Reporting and Filings

	 	 	 	 	 

	 	6.	 	 	Operations/Reservoir Engineering/Geology/Geophysics

	 	 	 	 	 

	 	7.	 	 	Administrative Services

	 	 	 	 	 

	 	8.	 	 	Financial Services

	 	 	 	 	 

	 	9.	 	 	Insurance Services

	 	 	 	 	 

	 	10.	 	 	Risk Management

	 	 	 	 	 

	 	11.	 	 	Corporate Development

	 	 	 	 	 

	 	12.	 	 	Commercial and Marketing

	 	 	 	 	 

	 	13.	 	 	Treasury

	 	 	 	 	 

	 	14.	 	 	Tax

	 	 	 	 	 

	 	15.	 	 	Audit

	 	 	 	 	 

	 	16.	 	 	Sarbanes-Oxley Compliance

	 	 	 	 	 

	 	17.	 	 	Investor Relations

	 	 	 	 	 

	 	18.	 	 	Benefits, Compensation and Human Resources Administration

	 	 	 	 	 

	 	19.	 	 	Acquisition Services

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]