Document:

exv10w1

 

Exhibit
10.1

PRA INERNATIONAL

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement
(“Agreement”) is effective as of
                      ,  20    ,
by and between PRA International, a Delaware corporation (the “Company”), and                                    (“Indemnitee”).

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and its related entities;

     WHEREAS, in order to induce Indemnitee to provide services to the Company, the Company wishes
to provide for the indemnification of, and the advancement of expenses to, Indemnitee to the
maximum extent permitted by law;

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for the Company’s directors, officers, employees, agents and fiduciaries, the significant
increases in the cost of such insurance and the general reductions in the coverage of such
insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, agents and fiduciaries to
expensive litigation risks at the same time as the availability and coverage of liability insurance
has been severely limited; and

     WHEREAS, the Company and Indemnitee desire to continue to have in place the additional
protection provided by an indemnification agreement and to provide indemnification and advancement
of expenses to the Indemnitee to the maximum extent permitted by Delaware law;

     WHEREAS, in view of the considerations set forth above, the Company desires that Indemnitee
shall be indemnified and advanced expenses by the Company as set forth herein;

     NOW, THEREFORE, the Company and Indemnitee hereby agree as set forth below:

     1. INDEMNITY. The Company hereby agrees to hold harmless and indemnify Indemnitee to
the full extent authorized or permitted by law and the Company’s Certification of Incorporation and
By-laws. In furtherance of the foregoing indemnification, and without limiting the generality
thereof:

 

 

          (a) Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee
shall be entitled to the rights of indemnification provided in this Section 1(a) if, by reason of
Indemnitee’s Corporate Status (as hereinafter defined), Indemnitee is, or is threatened to be made,
a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or
in the right of the Company. Pursuant to this Section 1(a), Indemnitee shall be indemnified
against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid in
settlement actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and
in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company and, with respect to any criminal Proceeding, had no reasonable cause to believe
Indemnitee’s conduct was unlawful.

          (b) Proceedings by or in the Right of the Company. Indemnitee shall be entitled to
the rights of indemnification provided in this Section 1(b) if, by reason of Indemnitee’s Corporate
Status, Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding
brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this
Section 1(b), Indemnitee shall be indemnified against all Expenses actually and reasonably incurred
by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding if Indemnitee acted in
good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company; provided, however, that, if applicable law so provides, no
indemnification against such Expenses shall be made in respect of any claim, issue or matter in
such Proceeding as to which Indemnitee shall have been finally adjudged to be liable to the Company
unless and to the extent that the Court of Chancery of the State of Delaware shall determine that
such indemnification may be made.

          (c) Indemnification for Expenses if Indemnitee of a Party Who is Wholly or Partly
Successful. Notwithstanding any other provision of this Agreement, to the extent that
Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to and is successful, on the
merits or otherwise, in any Proceeding, Indemnitee shall be indemnified to the maximum extent
permitted by law against all Expenses actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly successful in such
Proceeding but is successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all
Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with each successfully resolved claim, issue or matter. For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with
or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

     2. ADDITIONAL INDEMNITY. In addition to, and without regard to any limitations on,
the indemnification provided for in Section 1, the Company shall and hereby does indemnify and hold
harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in
settlement actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf if, by reason
of Indemnitee’s Corporate Status

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Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding
(including a Proceeding by or in the right of the Company). The only limitation that shall exist
upon the Company’s obligations pursuant to this Section 2 shall be that the Company shall not be
obligated to make any payment to Indemnitee that is finally determined (under the procedures, and
subject to the presumptions, set forth in Sections 6 and 7 hereof) to be unlawful.

     3. CONTRIBUTION IN THE EVENT OF JOINT LIABILITY.

          (a) Whether or not the indemnification provided in Sections 1 and 2 hereof is available, in
respect of any threatened, pending or completed action, suit or proceeding in which Company is
jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), Company
shall pay, in the first instance, the entire amount of any judgment, penalty, fine or settlement of
such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the
Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.
The Company shall not enter into any settlement of any action, suit or proceeding in which the
Company is jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding) unless such settlement provides for a full and final release of all claims asserted
against Indemnitee.

          (b) Without diminishing or impairing the obligations of the Company set forth in the preceding
subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion
of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in
which Company is jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall contribute to the amount of Expenses, judgments, penalties, fines
and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee
in proportion to the relative benefits received by the Company and all officers, directors or
employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be
if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand,
from the transaction from which such action, suit or proceeding arose; provided, however, that the
proportion determined on the basis of relative benefit may, to the extent necessary to conform to
law, be further adjusted by reference to the relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee
(or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the
other hand, in connection with the events that resulted in such Expenses, judgments, penalties,
fines or settlement amounts, as well as any other equitable considerations which the law may
require to be considered. The relative fault of the Company and all officers, directors or
employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be
if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand,
shall be determined by reference to, among other things, the degree to which their actions were
motivated by intent to gain personal profit or advantage, the degree to which their liability is
primary or secondary, and the degree to which their conduct is active or passive.

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          (c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims
of contribution which may be brought by officers, directors or employees of the Company who may be
jointly liable with Indemnitee.

     4. INDEMNIFICATION FOR EXPENSES OF A WITNESS. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a
witness in any Proceeding to which such Indemnitee is not a party, Indemnitee shall be indemnified
against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection therewith.

     5. ADVANCEMENT OF EXPENSES. Notwithstanding any other provision of this Agreement,
the Company shall advance all reasonable Expenses incurred by or on behalf of Indemnitee in
connection with any Proceeding by reason of Indemnitee’s Corporate Status within ten days after the
receipt by the Company of a statement or statements from Indemnitee requesting such advance or
advances from time to time, whether prior to or after final disposition of such Proceeding. Such
statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall
include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any
Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be
indemnified against such Expenses. Any advances and undertakings to repay pursuant to this Section
5 shall be unsecured and interest free, and all Expenses that are certified by Indemnitee’s counsel
as being reasonable shall be presumed conclusively to be reasonable. Notwithstanding the
foregoing, the obligation of the Company to advance Expenses pursuant to this Section 7 shall be
subject to the condition that, if, when and to the extent that the Company determines (in
accordance with the presumptions and procedures set forth herein) that Indemnitee would not be
permitted to be indemnified under applicable law, the Company shall be entitled to be reimbursed,
within thirty (30) days of such determination, by Indemnitee for all such amounts theretofore paid;
provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings to
secure a determination that Indemnitee should be indemnified under applicable law, any
determination made by the Company that Indemnitee would not be permitted to be indemnified under
applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company
for any advance of Expenses until a final judicial determination is made with respect thereto.

     6. PROCEDURES AND PRESUMPTIONS FOR DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION.
It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as
favorable as may be permitted under the law and public policy of the State of Delaware.
Accordingly, the parties agree that the following procedures and presumptions shall apply in the
event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:

          (a) To obtain indemnification (including, but not limited to, the advancement of Expenses and
contribution by the Company) under this Agreement, Indemnitee shall submit to the Company a written
request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is

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reasonably necessary to determine whether and to what extent Indemnitee is entitled to
indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board of Directors in writing that Indemnitee has requested
indemnification.

          (b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 6(a) hereof, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case by one of the following three methods, which
shall be at the election of Indemnitee: (1) by a majority vote of the disinterested directors,
even though less than a quorum, or (2) by independent legal counsel in a written opinion, or (3) by
the stockholders.

          (c) If the determination of entitlement to indemnification is to be made by Independent
Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be selected as provided in
this Section 6(c). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee
shall request that such selection be made by the Board of Directors). Indemnitee or the Company,
as the case may be, may, within 10 days after such written notice of selection shall have been
given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such
selection; provided, however, that such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined
in Section 13(d) of this Agreement, and the objection shall set forth with particularity the
factual basis of such assertion. Absent a proper and timely objection, the person so selected
shall act as Independent Counsel. If a written objection is made and substantiated, the
Independent Counsel selected may not serve as Independent Counsel unless and until such objection
is withdrawn or a court has determined that such objection is without merit. If, within 30 days
after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a)
hereof, no Independent Counsel shall have been selected and not objected to, either the Company or
Indemnitee may seek judicial resolution of any objection which shall have been made by the Company
or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the court or by such other person as the court shall
designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 6(b) hereof. The Company shall pay any
and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in
connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable
fees and expenses incident to the procedures of this Section 6(c), regardless of the manner in
which such Independent Counsel was selected or appointed.

          (d) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume (unless there is clear and
convincing evidence to the contrary) that Indemnitee is entitled to indemnification under this
Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 6(a)
of this Agreement. Anyone seeking to overcome this presumption shall have the burden of proof and
the burden of persuasion, by clear and convincing evidence.

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          (e) Indemnitee shall be presumed to have acted in good faith if Indemnitee’s action is based
on the records or books of account of the Company, including financial statements, or on
information supplied to Indemnitee by the officers of the Company in the course of their duties, or
on the advice of legal counsel for the Company or on information or records given or reports made
to the Company by an independent certified public accountant, by a financial advisor or by an
appraiser or other expert selected with reasonable care by the Company. In addition, the knowledge
and/or actions, or failure to act, of any director, officer, agent or employee of the Company shall
not be imputed to Indemnitee for purposes of determining the right to indemnification under this
Agreement. Whether or not the foregoing provisions of this Section 6(e) are satisfied, it shall in
any event be presumed (unless there is clear and convincing evidence to the contrary) that
Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to
be in or not opposed to the best interests of the Company. Anyone seeking to overcome this
presumption shall have the burden of proof and the burden of persuasion, by clear and convincing
evidence.

          (f) The Company acknowledges that a settlement or other disposition short of final judgment
may be successful if it permits a party to avoid expense, delay, distraction, disruption and
uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is
resolved in any manner other than by adverse judgment against Indemnitee (including, without
limitation, settlement of such action, claim or proceeding with or without payment of money or
other consideration) it shall be presumed (unless there is clear and convincing evidence to the
contrary) that Indemnitee has been successful on the merits or otherwise in such action, suit or
proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the
burden of persuasion, by clear and convincing evidence.

          (g) If the person, persons or entity empowered or selected under Section 6(b) to determine
whether Indemnitee is entitled to indemnification shall not have made a determination within sixty
(60) days after receipt by the Company of the request therefor, the requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled
to such indemnification, thereto; provided, however, that the foregoing provisions of this Section
6(g) shall not apply if the determination of entitlement to indemnification is to be made by the
stockholders pursuant to Section 6(b) of this Agreement and if within fifteen (15) days after
receipt by the Company of the request for such determination the Board of Directors resolve to
submit such determination to the stockholders for their consideration at the next annual meeting
thereof and such determination is made thereat.

          (h) Indemnitee shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, and provide to such person, persons or
entity upon reasonable advance request any documentation or information which is reasonably
available to Indemnitee and reasonably necessary to such determination. Nothing in this Agreement
shall require Indemnitee to waive any of Indemnitee’s rights under the United States Constitution
or to provide information which is privileged or otherwise protected from disclosure. Any
Independent Counsel, member of the Board of Directors, or stockholder of the Company

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shall act reasonably and in good faith in making a determination under the Agreement of
Indemnitee’s entitlement to indemnification. Any costs or expenses (including attorneys’ fees and
disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making
such determination shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

     7. REMEDIES.

          (a) In the event that (i) a determination is made pursuant to Section 6 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is
not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to
indemnification shall have been made pursuant to Section 6(b) of this Agreement within 90 days
after receipt by the Company of the request for indemnification, (iv) payment of indemnification is
not made pursuant to this Agreement within ten (10) days after receipt by the Company of a written
request therefor, or (v) payment of indemnification is not made within ten (10) days after a
determination has been made that Indemnitee is entitled to indemnification or such determination is
deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to
an adjudication of Indemnitee’s entitlement to such indemnification. The Company shall not oppose
Indemnitee’s right to seek any such adjudication.

          (b) In the event that a determination shall have been made pursuant to Section 6(b) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced
pursuant to this Section 7 shall be conducted in all respects as a de novo trial, on the merits and
Indemnitee shall not be prejudiced in any way by reason of that adverse determination.

          (c) If a determination shall have been made pursuant to Section 6(b) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding commenced pursuant to this Section 7, absent a prohibition of such
indemnification under applicable law.

          (d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of
Indemnitee’s rights under, or to recover damages for breach of, this Agreement, or to recover under
any directors’ and officers’ liability insurance policies maintained by the Company, the Company
shall pay on Indemnitee’s behalf, in advance, any and all expenses (of the types described in the
definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by
Indemnitee in such judicial adjudication, regardless of whether Indemnitee ultimately is determined
to be entitled to such indemnification, advancement of expenses or insurance recovery.

          (e) The Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 7 that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate that the Company is bound by all the provisions of this
Agreement.

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     8. NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE; SUBROGATION.

          (a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may at any time be entitled under applicable law, the
Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of
directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision
hereof shall limit or restrict any right of Indemnity under this Agreement in respect of any action
taken or omitted by Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration
or repeal. To the extent that a change in the law, whether by statute or judicial decision,
permits greater indemnification than would be afforded currently under this Agreement, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change. No right or remedy herein conferred is intended to be exclusive of any
other right or remedy, and every other right and remedy shall be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent or later assertion or employment of any other right or remedy.

          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or
of any other corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise which such person serves at the request of the Company, Indemnitee shall be covered by
such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any such director, officer, employee or agent under such policy or policies.

          (c) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement or otherwise.

     9. EXCEPTION TO RIGHT OF INDEMNIFICATION. Notwithstanding any other provision of this
Agreement, Indemnitee shall not be entitled to indemnification under this Agreement with respect to
any Proceeding brought by Indemnitee, or any claim therein (except claims by way of defense,
counterclaim or crossclaim), unless (a) the bringing of such Proceeding or making of such claim
shall have been approved by the Board of Directors, (b) such Proceeding is being brought by
Indemnitee to assert Indemnitee’s rights under this Agreement, or (c) as otherwise required under
Section 145 of the General Corporation Law of the State of Delaware, regardless of whether
Indemnitee is determined to be entitled to such indemnification or insurance recovery as the case
may be.

     10. DURATION OF AGREEMENT. All agreements and obligations of the Company contained
herein shall continue during the period Indemnitee is serving as an officer or director of the
Company (or is or was serving at the request of the Company as

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a director, officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to
any Proceeding (or any proceeding commenced under Section 6 hereof) by reason of Indemnitee’s
Corporate Status, whether or not Indemnitee is acting or serving in any such capacity at the time
any liability or expense is incurred for which indemnification can be provided under this
Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets
of the Company), assigns, spouses, heirs, executors and personal and legal representatives. This
Agreement shall continue in effect regardless of whether Indemnitee continues to serve as an
officer or director of the Company or any other enterprise at the Company’s request.

     11. SECURITY. To the extent requested by Indemnitee and approved by the Board of
Directors, the Company shall at any time and from time to time provide security to Indemnitee for
the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or
other collateral. Any such security, once provided to Indemnitee, may not be revoked or released
without the prior written consent of Indemnitee.

     12. ENFORCEMENT.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a member of
the Board of Directors, and the Company acknowledges that Indemnitee is relying upon this Agreement
in serving as a member of the Board of Directors.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof.

          (c) The Company and the Indemnitee agree that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached. It is accordingly agreed that they each will be entitled to an
injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the
terms and provisions of this Agreement in any court of the United States located in the State of
Delaware or in Delaware state court, this being in addition to any other remedy to which they are
entitled at Law or in equity. In addition, each of the Company and the Indemnitee (a) consents to
submit itself to the personal jurisdiction of any federal court located in the State of Delaware or
any Delaware state court in the event any dispute arises out of this Agreement, (b) agrees that it
will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave
from any such court and (c) agrees that it will not bring any action relating to this Agreement in
any court other than a federal or state court sitting in the State of Delaware.

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     13. DEFINITIONS. For purposes of this Agreement:

          (a) “Company” shall include any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise of which Indemnitee is or was serving at the express written
request of the Company as a director, officer, employee, agent or fiduciary.

          (b) “Corporate Status” describes the status of a person who is or was a director, officer,
employee or agent or fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which such person is or was serving at
the express written request of the Company.

          (c) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, participating, or being or preparing to be a witness in a
Proceeding, and any federal, state, local or foreign taxes imposed on Indemnitee as a result of the
actual or deemed receipt of any payments under this Agreement.

          (d) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained
to represent: (i) the Company or Indemnitee in any matter material to either such party (other
than with respect to matters concerning any Indemnitee under this Agreement), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel: shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred
to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant hereto.

          (e) “Proceeding” includes any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other
actual, threatened or completed proceeding, whether brought by or in the right of the Company or
otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is
or will be involved as a party or otherwise, by reason of the fact that Indemnitee is or was a
member of the Company or Indemnitee of the Company, by reason of any action taken by Indemnitee or
of any inaction on Indemnitee’s part while acting as a member of the Company, or by reason of the
fact that Indemnitee is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise; in
each case whether or not Indemnitee is acting or serving in any such capacity at the time any
liability or expense is incurred for which indemnification can be
provided under this Agreement; and excluding one initiated by Indemnitee pursuant to Section 6
of this Agreement to enforce Indemnitee’s rights under this Agreement.

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     14. SEVERABILITY. If any provision or provisions of this Agreement shall be held by a
court of competent jurisdiction to be invalid, void, illegal or otherwise unenforceable for any
reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of
this Agreement (including without limitation, each portion of any section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall
remain enforceable to the fullest extent permitted by law; and (b) to the fullest extent possible,
the provisions of this Agreement (including, without limitation, each portion of any section of
this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is
not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested thereby.

     15. MODIFICATION AND WAIVER. No supplement, modification, termination or amendment of
this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     16. NOTICE BY INDEMNITEE. Indemnitee agrees promptly to notify the Company in writing
upon being served with any summons, citation, subpoena, complaint, indictment, information or other
document relating to any Proceeding or matter which may be subject to indemnification covered
hereunder. The failure to so notify the Company shall not relieve the Company of any obligation
which it may have to Indemnitee under this Agreement or otherwise.

     17. NOTICES. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if (i) delivered by and receipted for by
the party to whom said notice or other communication shall have been directed or if (ii) mailed by
certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed:

	 	(a)	 	If to Indemnitee, to:
 
 

	 	(b)	 	If to the Company, to:
	 
	 	 	 	PRA International

12120 Sunset Hills Road

Suite 600

	 	 	 	Reston, Virginia 20190

Attention: Office of the Chief Executive Officer

                  Office of the Chief Financial Officer

11

 

     18. IDENTICAL COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence the existence of this
Agreement.

     19. HEADINGS. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

     20. GOVERNING LAW. The parties agree that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware without application of
the conflict of laws principles thereof.

[Signature Page Follows]

12

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	PRA INTERNATIONAL

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	
 	 
	 	Indemnitee 	 
	 	 	 
	 

13exv10w3

 

Exhibit 10.3

OMNIBUS AGREEMENT

BY AND AMONG

QUICKSILVER GAS SERVICES LP,

QUICKSILVER GAS SERVICES GP LLC

AND

QUICKSILVER RESOURCES INC.

 

 

Table of Contents

	 	 	 	 	 	 	 
	 

	 	ARTICLE I	 	 	 	 
	 

	 	Definitions	 	 	 	 
	1.1

	 	Definitions
	 	 	1	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	Non-competition and Business Opportunities	 	 	 	 
	2.1

	 	Restricted Businesses
	 	 	5	 
	2.2

	 	Permitted Exceptions
	 	 	5	 
	2.3

	 	Procedures.
	 	 	6	 
	2.4

	 	Scope of Prohibition
	 	 	12	 
	2.5

	 	Enforcement
	 	 	12	 
	2.6

	 	Termination
	 	 	12	 
	 

	 	ARTICLE III	 	 	 	 
	 

	 	Indemnification	 	 	 	 
	3.1

	 	Environmental Indemnification
	 	 	12	 
	3.2

	 	Additional Indemnification
	 	 	12	 
	3.3

	 	Limitations Regarding Indemnification.
	 	 	13	 
	3.4

	 	Indemnification by the Partnership Group
	 	 	14	 
	3.5

	 	Indemnification Procedures.
	 	 	14	 
	 

	 	ARTICLE IV	 	 	 	 
	 

	 	Reimbursement Obligations	 	 	 	 
	4.1

	 	Reimbursement for Operating and General and Administrative Expenses.
	 	 	15	 
	4.2

	 	Reimbursement for Insurance
	 	 	15	 
	 

	 	ARTICLE V	 	 	 	 
	 

	 	Miscellaneous	 	 	 	 
	5.1

	 	Choice of Law; Submission to Jurisdiction
	 	 	16	 
	5.2

	 	Notice
	 	 	16	 
	5.3

	 	Entire Agreement
	 	 	16	 
	5.4

	 	Termination
	 	 	16	 
	5.5

	 	Effect of Waiver or Consent
	 	 	17	 
	5.6

	 	Amendment or Modification
	 	 	17	 
	5.7

	 	Assignment; Third Party Beneficiaries
	 	 	17	 
	5.8

	 	Counterparts
	 	 	17	 
	5.9

	 	Severability
	 	 	17	 
	5.10

	 	Gender, Parts, Articles and Sections
	 	 	17	 
	5.11

	 	Further Assurances
	 	 	17	 
	5.12

	 	Withholding or Granting of Consent
	 	 	17	 
	5.13

	 	Laws and Regulations
	 	 	18	 
	5.14

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

	 	No Recourse Against Officers or Directors
	 	 	18	 

i

 

OMNIBUS AGREEMENT

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

R E C I T A L S:

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

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

ARTICLE I

Definitions

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

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

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

2

 

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

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

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

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

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

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

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

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

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

3

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4

 

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

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

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

     “Restricted Businesses” is defined in Section 2.1.

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

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

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

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

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

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

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

ARTICLE II

Non-competition and Business Opportunities

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

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

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

5

 

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

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

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

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

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

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

     2.3 Procedures.

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

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

6

 

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

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

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

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

7

 

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

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

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

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

8

 

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

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

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

9

 

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

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

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

10

 

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

11

 

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

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

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

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

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

ARTICLE III

Indemnification

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

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

12

 

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

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

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

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

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

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

     3.3 Limitations Regarding Indemnification.

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

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

13

 

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

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

     3.5 Indemnification Procedures.

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

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

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

14

 

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

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

ARTICLE IV

Reimbursement Obligations

     4.1 Reimbursement for Operating and General and Administrative Expenses.

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

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

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

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

15

 

ARTICLE V

Miscellaneous

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

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

For notices to the Quicksilver Entities:

777 West Rosedale Street, Suite 300

Fort Worth, Texas 76104

Phone: (817) 665-5000

Fax: (          )                     

Attention:                                         

For notices to the Partnership Entities:

777 West Rosedale Street, Suite 300

Fort Worth, Texas 76104

Phone: (817) 665-5000

Fax: (          )                     

Attention:                                         

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

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

16

 

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

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

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

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

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

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

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

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

17

 

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

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

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

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

[Signature page follows]

18

 

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

	 	 	 	 	 	 	 	 	 
	 	 	QUICKSILVER GAS SERVICES LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	QUICKSILVER GAS SERVICES GP LLC,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	QUICKSILVER GAS SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	QUICKSILVER RESOURCES INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

SCHEDULE A

Retained Assets

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

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

Moe Lateral (Bosque County)

Moe Szyslak Lateral (Johnson County)

Hill County Dry System (Hill County)

Lake Arlington Dry System (Tarrant County)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]