Document:

exv10w6

Table of Contents

Exhibit 10.6

CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT

BY AND AMONG

QUICKSILVER GAS SERVICES LP

QUICKSILVER GAS SERVICES GP LLC

COWTOWN GAS PROCESSING L.P.

COWTOWN PIPELINE L.P.

QUICKSILVER GAS SERVICES HOLDINGS LLC

QUICKSILVER GAS SERVICES OPERATING GP LLC

QUICKSILVER GAS SERVICES OPERATING LLC

QUICKSILVER RESOURCES INC.

AND

THE PRIVATE INVESTORS

 

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TABLE OF CONTENTS

									

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	ARTICLE 1

DEFINITIONS

	 	 	3	 
	 
	 	 	 	 
	ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

	 	 	5	 
	 
	 	 	 	 
	Section 2.1 Contribution by Holdings of the Interests to MLP GP

	 	 	5	 
	Section 2.2 Contribution by MLP GP of the Interests to MLP

	 	 	5	 
	Section 2.3 Contribution by Holdings of the OPGP Interests to MLP

	 	 	5	 
	Section 2.4 Contribution by the Private Investors of Limited Partner Interest in
each of Pipeline Partners and Processing Partners to MLP

	 	 	5	 
	Section 2.5 Waiver of Private Investors’ Redemption Rights

	 	 	6	 
	Section 2.6 Underwriters’ Cash Contribution

	 	 	6	 
	Section 2.7 Payment of Transaction Costs

	 	 	6	 
	Section 2.8 Redemption of Holdings Initial MLP Interest

	 	 	6	 
	 
	 	 	 	 
	ARTICLE 3

ADDITIONAL TRANSACTIONS

	 	 	6	 
	 
	 	 	 	 
	Section 3.1 Purchase of Additional Common Units

	 	 	6	 
	Section 3.2 Redemption of Common Units

	 	 	7	 
	 
	 	 	 	 
	ARTICLE 4

FURTHER ASSURANCES

	 	 	7	 
	 
	 	 	 	 
	Section 4.1 Further Assurances

	 	 	7	 
	Section 4.2 Other Assurances

	 	 	7	 
	 
	 	 	 	 
	ARTICLE 5

EFFECTIVE TIME

	 	 	7	 
	 
	 	 	 	 
	ARTICLE 6

MISCELLANEOUS

	 	 	8	 
	 
	 	 	 	 
	Section 6.1 Order of Completion of Transactions

	 	 	8	 
	Section 6.2 Headings; References; Interpretation

	 	 	8	 
	Section 6.3 Successors and Assigns

	 	 	8	 
	Section 6.4 No Third Party Rights

	 	 	8	 
	Section 6.5 Counterparts

	 	 	8	 
	Section 6.6 Governing Law

	 	 	8	 
	Section 6.7 Severability

	 	 	8	 
	Section 6.8 Amendment or Modification

	 	 	9	 
	Section 6.9 Integration

	 	 	9	 
	Section 6.10 Deed; Bill of Sale; Assignment

	 	 	9	 

 

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CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT

     This CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of [___] [___], 2007, is
entered into by and among QUICKSILVER GAS SERVICES LP, a Delaware limited partnership (“MLP”),
QUICKSILVER GAS SERVICES GP LLC, a Delaware limited liability company (“MLP GP”), COWTOWN GAS
PROCESSING L.P., a Delaware limited partnership (“Processing”), COWTOWN PIPELINE L.P., a Delaware
limited partnership (“Pipeline”), QUICKSILVER GAS SERVICES HOLDINGS LLC, a Delaware limited
liability company (“Holdings”), QUICKSILVER GAS SERVICES OPERATING GP LLC, a Delaware limited
liability company (“OPGP”), QUICKSILVER GAS SERVICES OPERATING LLC, a Delaware limited liability
company (“OLLC”), QUICKSILVER RESOURCES INC., a Delaware corporation (“QRI”), LITTLE HOSS COWTOWN
PROCESSING PARTNERS, a Texas general partnership (“Little Hoss Cowtown Processing”), LITTLE HOSS
COWTOWN PIPELINE PARTNERS, a Texas general partnership (“Little Hoss Cowtown Pipeline”; Little Hoss
Cowtown Processing and Little Hoss Cowtown Pipeline are collectively referred to herein as “Little
Hoss”), and LGS-Godley Investments, LLC, a Texas limited liability corporation (“LGS-Godley,” and
together with Little Hoss, the “Private Investors”). The parties to this Agreement are
collectively referred to herein as the “Parties.” Capitalized terms used herein shall have
the meanings assigned to such terms in Section 1.1.

RECITALS

     WHEREAS, MLP GP and Holdings have formed MLP, pursuant to the Delaware Revised Uniform Limited
Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any business activity that
is approved by MLP GP and that lawfully may be conducted by a limited partnership organized
pursuant to the Delaware LP Act.

     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, the
following actions have been taken prior to the date hereof:

     1. Processing, Pipeline and the Private Investors currently hold the interests in Cowtown Gas
Processing Partners L.P. (“Processing Partners”) and Cowtown Pipeline Partners L.P. (“Pipeline
Partners”) as set forth on Schedule I hereto.

     2. Processing and Pipeline formed Holdings, under the Delaware Limited Liability Company Act
(the “Delaware LLC Act”); Processing contributed $500 to Holdings in exchange for a 50% member
interest in Holdings; and Pipeline contributed $500 to Holdings in exchange for a 50% member
interest in Holdings.

     3. Holdings formed OPGP, under the Delaware LLC Act, to which Holdings contributed $1,000 in
exchange for all of the member interests in OPGP.

     4. Holdings formed MLP GP, under the Delaware LLC Act, and contributed $1,000 to MLP GP in
exchange for all of the member interests in MLP GP.

     5. MLP GP and Holdings formed MLP, under the Delaware LP Act; MLP GP contributed $20.00 to MLP
in exchange for a 2% general partner interest in MLP; and

 

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Holdings contributed $980.00 to MLP in exchange for a 98% limited partner interest (the
“Holdings Initial MLP Interest”) in MLP.

     6. MLP formed OLLC, under the Delaware LLC Act, and contributed $1,000 to OLLC in exchange for
all of the member interests in OLLC.

     7. Pipeline contributed its 1% general partner interest and 92% limited partner interest in
Pipeline Partners to Holdings in exchange for units representing a 53% member interests in
Holdings.

     8. Processing contributed its 1% general partner interest and 94% limited partner interest in
Processing Partners to Holdings in exchange for units representing a 47% member interests in
Holdings.

     9. Holdings contributed its 1% general partner interests in each of Pipeline Partners and
Processing Partners to OPGP in exchange for a continuation of its member interests in OPGP.

     10. MLP borrowed approximately $0.3 million under the $150 million revolving credit facility.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby (the
“Closing”), each of the following matters shall occur:

     1. Holdings will contribute to MLP GP part of its limited partner interests in each of
Pipeline Partners and Processing Partners with an aggregate value equal to 2% of the equity value
of MLP immediately after the Closing (the “Interests”), as a capital contribution.

     2. MLP GP will convey the Interests to MLP in exchange for (a) 469,944 general partner units
representing a continuation of its 2% general partner interest in MLP and (b) the issuance to MLP
GP of all of the incentive distribution rights (the “IDRs”) of MLP.

     3. Holdings will convey all of its member interests in OPGP and the rest of its limited
partner interests in each of Pipeline Partners and Processing Partners to MLP in exchange for (a)
11,513,625 Subordinated Units in MLP and 5,696,752 Common Units in MLP (representing an aggregate
73.2% limited partner interest) and (b) the right to receive $162.1 million for reimbursement of
certain capital expenditures.

     4. Little Hoss will (a) convey all of its limited partner interests in each of Pipeline
Partners and Processing Partners (as set forth on Schedule I hereto) to MLP, and (b) assign
and transfer to MLP, and waive and relinquish, all of its rights, claims and interests in and to
the Redemption Agreements (as defined below), in exchange for (x) 684,668 Common Units in MLP
(representing a 3.0% interest) and (y) the right to receive $6,449,180 for reimbursement of certain
capital expenditures.

     5. LGS-Godley will (a) convey all of its limited partner interests in Pipeline Partners (as
set forth on Schedule I hereto) to MLP, and (b) assign and transfer to MLP, and waive and
relinquish, all of its rights, claims and interests in and to the CPP Redemption

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Agreement (as defined below), in exchange for (x) 132,204 Common Units in MLP (representing a .5% interest) and (y) the right to receive $1,245,290 for reimbursement of certain capital
expenditures

     6. The public, through the Underwriters, will contribute $93.0 million in cash, less the
Underwriters’ discount of $7.0 million, in exchange for 5,000,000 Common Units in MLP (representing
a 21.3% interest).

     7. MLP will (a) pay transaction expenses associated with the transactions contemplated by this
Agreement in the amount of approximately $3.0 million (exclusive of the Underwriters’ discount),
(b) distribute $112.1 million in cash and a $50.0 million subordinated note payable to Holdings for
reimbursement of certain capital expenditures and (c) distribute $7.7 million to the Private
Investors for reimbursement for certain capital expenditures.

     8. MLP will convey to OLLC, as a capital contribution, its limited partner interests in each
of Pipeline Partners and Processing Partners and all of the member interests in OPGP (the “OPGP
Interests”).

     9. MLP will redeem from Holdings and retire the Holdings Initial MLP Interest in exchange for
a payment in cash to Holdings of $980.00.

     10. The agreements of limited partnership and the limited liability company agreements of the
aforementioned entities will be amended and restated to the extent necessary to reflect the matters
and transaction mentioned in this Agreement.

     WHEREAS, within 30 days of the Closing, if the Underwriters exercise their option to purchase
up to an additional 750,000 Common Units (the “Option”), MLP shall use proceeds of that exercise,
net of the applicable Underwriters’ discount, to redeem a number of Common Units owned by QRI equal
to the number of Common Units sold pursuant to the exercise of the Option;

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

ARTICLE 1

DEFINITIONS

     Section 1.1 The following capitalized terms shall have the meanings given below.

     (a) “Agreement” means this Contribution, Conveyance and Assumption Agreement.

     (b) “Common Unit” has the meaning assigned to such term in the Partnership Agreement.

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     (c) “CGPP Redemption Agreement” means the Redemption Agreement, dated April 3, 2006, by and
between Little Hoss Ranch Partners, L.P. and Cowtown Gas Processing Partners L.P.

     (d) “CPP Redemption Agreement” means the Redemption Agreement, dated April 3, 2006, by and
among Little Hoss Ranch Partners, L.P., LGS-Godley Ranch Co. and Cowtown Pipeline Partners L.P.

     (e) “Effective Time” shall mean 8:00 a.m. New York, New York time on the date of the
consummation of the Offering.

     (f) “IDRs” means “Incentive Distribution Rights” as such term is defined in the Partnership
Agreement.

     (g) “MLP” has the meaning assigned to such term in the opening paragraph of this Agreement.

     (h) “Offering” means the initial public offering by MLP of Common Units.

     (i) “Omnibus Agreement” means that certain Omnibus Agreement of even date herewith, among MLP,
MLP GP and QRI.

     (j) “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Quicksilver Gas Services LP dated as of the Effective Date.

     (k) “Partnership Group” has the meaning assigned to such term in the Omnibus Agreement.

     (l) “Redemption Agreements” means, collectively, the CGPP Redemption Agreement and the CPP
Redemption Agreement.

     (m) “Registration Statement” means the registration statement on Form S-1 (Registration No.
333-140599) filed by MLP relating to the Offering, as amended.

     (n) “Subordinated Unit” has the meaning assigned to such term in the Partnership Agreement.

     (o) “Underwriters” means UBS Securities LLC, Goldman, Sachs & Co. and
[___].

     (p) “Underwriting Agreement” means the underwriting agreement dated [___] [___], 2007
among MLP, MLP GP and QRI on the one hand, and the Underwriters on the other hand, relating to the
Offering.

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ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

     Section 2.1 Contribution by Holdings of the Interests to MLP GP. Holdings hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to MLP GP, its successors and assigns, for its and their own use forever, all right, title
and interest in and to the Interests, as a capital contribution, for good and valuable
consideration, the sufficiency of which is hereby acknowledged, and MLP GP hereby accepts the
Interests as a contribution to the capital of MLP GP.

     Section 2.2 Contribution by MLP GP of the Interests to MLP. MLP GP hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to MLP, its successors and assigns, for its and their own use forever, all right, title
and interest in and to the Interests, as a capital contribution, in exchange for (a) a continuation
of its 2% general partner interest in MLP, (b) the issuance by MLP to MLP GP of the IDRs and (c)
other good and valuable consideration, the sufficiency of which is hereby acknowledged, and MLP
hereby accepts the Interests as a contribution to the capital of MLP.

     Section 2.3 Contribution by Holdings of the OPGP Interests to MLP. Holdings hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to MLP, its successors and assigns, for its and their own use forever, all right, title
and interest in and to the OPGP Interests and the remaining limited partner interests in each of
Pipeline Partners and Processing Partners in exchange for (a) the issuance by MLP to Holdings of
11,513,625 Subordinated Units, representing 49.0% interest in MLP, (b) the issuance by MLP to
Holdings of 5,696,752 Common Units, representing a 24.2% interest in MLP, (c) the right to receive
$162.1 million for reimbursement of certain capital expenditures and (d) other good and valuable
consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts the OPGP
Interests and the remaining limited partner interests in each of Pipeline Partners and Processing
Partners as a contribution to the capital of MLP and agrees to be bound by the terms of the Limited
Liability Company Agreement of OPGP as its sole member.

     Section 2.4 Contribution by Little Hoss of Limited Partner Interest in each of Pipeline
Partners and Processing Partners to MLP. Little Hoss hereby grants, contributes, bargains, conveys, assigns, transfers, sets over
and delivers to MLP, its successors and assigns, for its and their own use forever, all right,
title and interest in and to its limited partner interests in each of Pipeline Partners and
Processing Partners, as set forth on Schedule I hereto, in exchange for (a) the issuance by
MLP to Little Hoss of 684,668 Common Units, representing a 3.0% interest in MLP, (b) the right to
receive $6,449,180 for reimbursement of certain capital expenditures and (c) other good and
valuable consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts
such limited partner interests as a contribution to the capital of MLP, and, effective as of the
completion of the conveyance to MLP of the limited partner interests in each of Pipeline Partners
and Processing Partners and Sections 2.4 and 2.7 of this Agreement, agrees to be bound by the terms
of the Limited Partnership Agreement of each of Pipeline Partners and Processing Partners with
respect to the limited partner interests in Pipeline Partners and Processing Partners so conveyed
to MLP.

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     Section 2.5 Contribution by LGS-Godley of Limited Partner Interest in Pipeline Partners to
MLP. LGS-Godley hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to MLP, its successors and assigns, for its and their own use forever, all right, title
and interest in and to its limited partner interests in Pipeline Partners, as set forth on
Schedule I hereto, in exchange for (a) the issuance by MLP to LGS-Godley of 132,204 Common
Units, representing a .5% interest in MLP, (b) the right to receive $1,245,290 for reimbursement of
certain capital expenditures and (c) other good and valuable consideration, the sufficiency of
which is hereby acknowledged, and MLP hereby accepts such limited partner interests as a
contribution to the capital of MLP, and, effective as of the completion of the conveyance to MLP of
the limited partner interest in Pipeline Partners and Sections 2.4 and 2.7 of this Agreement,
agrees to be bound by the terms of the Limited Partnership Agreement of Pipeline Partners with
respect to the limited partner interest in Pipeline Partners so conveyed to MLP.

     Section 2.6 Waiver of Private Investors’ Redemption Rights. The Parties acknowledge
that, in partial consideration for the consideration to be received by the Private Investors
pursuant to Sections 2.4 and 2.5 above, each of the Private Investors assigns and transfers to MLP,
and waives and relinquishes, any and all rights, claims and interests under the Redemption
Agreements.

     Section 2.7 Underwriters’ Cash Contribution. The Parties acknowledge that the Underwriters have, pursuant to the Underwriting Agreement,
made a capital contribution to MLP of approximately $100.0 million in cash ($93.0 million net to
MLP after the underwriting discount of $7.0 million) in exchange for the issuance by MLP to the
Underwriters of 5,000,000 Common Units, representing an 21.3% interest in MLP.

     Section 2.8 Payment of Transaction Costs. The Parties acknowledge (a) the payment by MLP, in connection with the Closing, of
transaction expenses in the amount of approximately $3.0 million (exclusive of the Underwriters’
discount), (b) the distribution of $112.1 million in cash and a $50.0 million subordinated note
payable to Holdings for reimbursement of certain capital expenditures and (c) the distribution of
$7.7 million to the Private Investors for reimbursement of certain capital expenditures.

     Section 2.9 Redemption of Holdings Initial MLP Interest. MLP hereby agrees to redeem from Holdings and agrees to retire the Holdings Initial MLP
Interest in exchange for a payment in cash to Holdings of $980.00.

ARTICLE 3

ADDITIONAL TRANSACTIONS

     Section 3.1 Purchase of Additional Common Units. If the Option is exercised in whole or in part, the Underwriters will contribute additional
cash to MLP in exchange for up to an additional 750,000 Common Units on the basis of the initial
public offering price per Common Unit set forth in the Registration Statement, net of underwriting
discounts and fees.

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     Section 3.2 Redemption of Common Units. MLP hereby agrees to redeem a number of Common Units held by QRI equal to the number of
Common Units issued to the public, through the Underwriters, upon exercise of the Option, if any,
at a redemption price per Common Unit equal to the initial public offering price per Common Unit
set forth in the Registration Statement, net of underwriting discounts and fees.

ARTICLE 4

FURTHER ASSURANCES

     Section 4.1 Further Assurances. From time to time after the Effective Time, and without any further consideration, the
Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of
sale, conveyances, instruments, notices, releases, acquittances and other documents, and will do
all such other acts and things, all in accordance with applicable law, as may be necessary or
appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights,
titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are
intended to be so granted, or (b) more fully and effectively to vest in the applicable Parties and
their respective successors and assigns beneficial and record title to the interests contributed
and assigned by this Agreement or intended so to be and to more fully and effectively carry out the
purposes and intent of this Agreement.

     Section 4.2 Other Assurances. From time to time after the Effective Time, and without any further consideration, each of
the Parties shall execute, acknowledge and deliver all such additional instruments, notices and
other documents, and will do all such other acts and things, all in accordance with applicable law,
as may be necessary or appropriate to more fully and effectively carry out the purposes and intent
of this Agreement. Without limiting the generality of the foregoing, the Parties acknowledge that
the Parties have used their good faith efforts to attempt to identify all of the assets being
contributed to MLP or its subsidiaries as required in connection with the Offering. It is the
express intent of the Parties that MLP or its subsidiaries own all assets necessary to operate the
assets that are identified in this Agreement and in the Registration Statement. To the extent any
assets were not identified but are necessary to the operation of assets that were identified, then
the intent of the Parties is that all such unidentified assets are intended to be conveyed to the
appropriate members of the Partnership Group. To the extent such assets are identified at a later
date, the Parties shall take the appropriate actions required in order to convey all such assets to
the appropriate members of the Partnership Group. Likewise, to the extent that assets are
identified at a later date that were not intended by the Parties to be conveyed as reflected in the Registration Statement, the Parties shall take the appropriate
actions required in order to convey all such assets to the appropriate Party.

ARTICLE 5

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article 2 or Article 3 of this Agreement shall be operative or have any effect until the
Effective Time, at which time all the provisions of Article 2 and Article 3 of this Agreement shall
be effective and operative in accordance with Article 6, without further action by any Party
hereto.

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ARTICLE 6

MISCELLANEOUS

     Section 6.1 Order of Completion of Transactions. The transactions provided for in Article 2 and Article 3 of this Agreement shall be
completed immediately following the Effective Time in the following order: first, the transactions
provided for in Article 2 shall be completed in the order set forth therein; and second, following
the completion of the transactions as provided in Article 2, the transactions, if they occur,
provided for in Article 3 shall be completed.

     Section 6.2 Headings; References; Interpretation. All Article and Section headings in this Agreement are for convenience only and shall not
be deemed to control or affect the meaning or construction of any of the provisions hereof. The
words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement,
shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
All references herein to Articles and Sections shall, unless the context requires a different
construction, be deemed to be references to the Articles and Sections of this Agreement. All
personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender,
shall include all other genders, and the singular shall include the plural and vice versa. The use
herein of the word “including” following any general statement, term or matter shall not be
construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not non-limiting
language (such as “without limitation”, “but not limited to”, or words of similar import) is used
with reference thereto, but rather shall be deemed to refer to all other items or matters that
could reasonably fall within the broadest possible scope of such general statement, term or matter.

     Section 6.3 Successors and Assigns. The Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and assigns.

     Section 6.4 No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are
not intended to and do not create rights in any other person or confer upon any other person any
benefits, rights or remedies and no person is or is intended to be a third party beneficiary of any
of the provisions of this Agreement.

     Section 6.5 Counterparts. This Agreement may be executed in any number of counterparts, all of which together shall
constitute one agreement binding on the Parties hereto.

     Section 6.6 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Texas.

     Section 6.7 Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction
to contravene, or to be invalid under, the laws of any political body having jurisdiction over the
subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement.
Instead, this Agreement shall be construed as if it did not contain the particular provision or
provisions held to be invalid and an equitable adjustment

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shall be made and necessary provision
added so as to give effect to the intention of the Parties as expressed in this Agreement at the
time of execution of this Agreement.

     Section 6.8 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement
of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its
face as an Amendment to this Agreement.

     Section 6.9 Integration. This Agreement and the instruments referenced herein supersede all previous understandings
or agreements among the Parties, whether oral or written, with respect to their subject matter.
This document and such instruments contain the entire understanding of the Parties with respect to
the subject matter hereof and thereof. No understanding, representation, promise or agreement,
whether oral or written, is intended to be or shall be included in or form part of this Agreement
unless it is contained in a written amendment hereto executed by the Parties hereto after the date
of this Agreement.

     Section 6.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable law, this Agreement shall also
constitute a “deed,” “bill of sale” or “assignment” of the assets and interests referenced herein.

[Signature page follows]

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     IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties hereto as of the date
first above written.

	 	 	 	 	 
	 	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 GAS SERVICES HOLDINGS LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	QUICKSILVER GAS SERVICES OPERATING GP LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	QUICKSILVER GAS SERVICES OPERATING LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

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	 	COWTOWN GAS PROCESSING L.P.

By:  Cowtown Pipeline Management, Inc., its general partner

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	COWTOWN PIPELINE L.P.

By:  Cowtown Pipeline Management, Inc., its general partner

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	QUICKSILVER RESOURCES INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	LITTLE HOSS COWTOWN PROCESSING PARTNERS

By:  AEM Ranch, L.L.C., managing partner

 	 
	 	By:  	
 	 
	 	 	Ardon E. Moore 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	LITTLE HOSS COWTOWN PIPELINE PARTNERS

By:  AEM Ranch, L.L.C., managing partner

 	 
	 	By:  	
 	 
	 	 	Ardon E. Moore 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	LGS-GODLEY INVESTMENTS, LLC

 	 
	 	By:  	
 	 
	 	 	Charles L. Geren 	 
	 	 	President 	 

 

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Schedule I

Cowtown Gas Processing Partners L.P. Ownership

	 	 	 	 	 	 	 	 	 
	Partners Name	 	Partner’s Sharing Percentage *	 	Units
	 	 	 	 	 	 	 	 	 
	General Partner:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Cowtown Gas
Processing L.P.
	 	 	1	%	 	 	N/A	 
	 	 	 	 	 	 	 	 	 
	Limited Partners:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Cowtown
Gas Processing L.P.
	 	 	94	%	 	 	475	 
	 	 	 	 	 	 	 	 	 
	Little Hoss Cowtown
Processing Partners
	 	 	5	%	 	 	25	 

Cowtown Pipeline Partners L.P. Ownership

	 	 	 	 	 	 	 	 	 
	Partners Name	 	Partner’s Sharing Percentage *	 	Units
	 	 	 	 	 	 	 	 	 
	General Partner:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Cowtown

PipelineL.P.
	 	 	1	%	 	 	N/A	 
	 	 	 	 	 	 	 	 	 
	Limited Partners:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Cowtown

Pipeline L.P.
	 	 	92	%	 	 	465	 
	 	 	 	 	 	 	 	 	 
	Little Hoss Cowtown
Pipeline Partners
	 	 	5	%	 	 	25	 
	 	 	 	 	 	 	 	 	 
	LGS-Godley Investments, LLC
	 	 	2	%	 	 	10	 

 

			
	*	 	Partner’s Sharing Percentage is determined as follows: (Units owned divided by total Units
outstanding) x 99%exv10w7

 

Exhibit 10.7

DIRECTOR AND OFFICER INDEMNIFICATION AGREEMENT

     This Director and Officer Indemnification Agreement, dated as of
____________, 2007
(this “Agreement”), is made by and between Quicksilver Gas Services GP LLC, a Delaware limited
liability company (the “Company”), and ____________(“Indemnitee”).

RECITALS:

     A. The Company is the general partner of Quicksilver Gas Services LP, a Delaware limited
partnership (the “Partnership”), which intends to issue securities to the public in an offering
registered under the Securities Act of 1933, as amended, and Indemnitee is [an officer/a director/a
director and officer] of the Company.

     B. Section 9 of the Limited Liability Company Agreement (the “LLC Agreement”) of the Company
provides that the business and affairs of the Company shall be managed by or under the direction of
the Board of Directors of the Company.

     C. Significant authority with respect to the management of the Company and, accordingly, the
Partnership, has been delegated to the officers of the Company.

     D. Thus, it is critically important to the Company that it be able to attract and retain the
most capable persons reasonably available to serve as directors and officers of the Company.

     E. The Delaware courts have recognized that indemnification by a company serves the dual
policies of (1) allowing company officials to resist unjustified lawsuits, secure in the knowledge
that, if vindicated, the company will bear the expense of litigation and (2) encouraging capable
women and men to serve as company directors and officers, secure in the knowledge that the company
will absorb the costs of defending their honesty and integrity.

     F. The number of lawsuits challenging the judgment and actions of directors and officers of
Delaware companies, the costs of defending those lawsuits, and the threat to directors’ and
officers’ personal assets have all materially increased over the past several years, chilling the
willingness of capable women and men to undertake the responsibilities imposed on company directors
and officers.

     G. Recent federal legislation and rules adopted by the Securities and Exchange Commission and
the national securities exchanges have imposed additional disclosure and company governance
obligations on directors and officers of public companies and have exposed such directors and
officers to new and substantially broadened civil liabilities.

     H. These legislative and regulatory initiatives have also exposed directors and officers of
public companies to a significantly greater risk of criminal proceedings, with attendant defense
costs and potential criminal fines and penalties.

 

 

     I. Indemnitee is a director or officer of the Company and does not regard the protection
afforded to him or her by Delaware law and the LLC Agreement as adequate, and his/her willingness
to serve in such capacity is predicated, in substantial part, upon (1) the Company’s willingness to
provide protection to him/her pursuant to express contract rights providing for the Company to
indemnify him/her in accordance with the principles reflected above, to the fullest extent
permitted by Delaware law, and (2) the other undertakings set forth in this Agreement.

     J. Therefore, in recognition of the need to provide Indemnitee with substantial protection
against personal liability, in order to procure Indemnitee’s continued service as a director or
officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective
manner, and in order to provide such protection pursuant to express contract rights (intended to be
enforceable irrespective of, among other things, any amendment to the Company’s certificate of
formation or the LLC Agreement (collectively, the “Constituent Documents”), any change in the
composition of the Company’s Board of Directors (the “Board”) or any change-in-control or business
combination transaction relating to the Company), the Company wishes to provide in this Agreement
for (1) the indemnification of and the advancement of Expenses (as defined in Section 1(g)) to
Indemnitee as set forth in this Agreement and (2) the continued coverage of Indemnitee under the
Company’s directors’ and officers’ liability insurance policies.

     K. In light of the considerations referred to in the preceding recitals, it is the Company’s
intention and desire that the provisions of this Agreement be construed liberally, subject to their
express terms, to maximize the protections to be provided to Indemnitee hereunder.

AGREEMENT:

     NOW, THEREFORE, the parties hereby agree as follows:

     1. Certain Definitions. In addition to terms defined elsewhere herein, the following terms
have the following meanings when used in this Agreement with initial capital letters:

          (a) “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

          (b) “Change in Control” means the occurrence after the date of this Agreement of any of the
following events:

               (i) The General Partner ceases to be controlled by Quicksilver or one or more Affiliates of
Quicksilver and a majority of the Board of Directors of the General Partner thereafter ceases to be
comprised of Incumbent Directors;

               (ii) The consummation of a reorganization, merger or consolidation of the Partnership or sale
or other disposition of all or substantially all of the consolidated assets of the Partnership (a
“Partnership Transaction”) immediately after which the voting power of the

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equity securities of the Partnership outstanding immediately prior to such Partnership
Transaction do not continue to represent (either by remaining outstanding or by being converted
into equity securities having voting power in the entity surviving, resulting from, or succeeding
to all or substantially all of the Partnership’s consolidated assets as a result of such
Partnership Transaction or any parent of such entity) at least 50% of the combined voting power of
the then outstanding equity securities of (A) the entity surviving, resulting from, or succeeding
to all or substantially all of the Partnership’s consolidated assets as a result of such
Partnership Transaction or (B) any parent of any such entity (including, without limitation, an
entity which as a result of such transaction owns the Partnership or all or substantially all of
the Partnership’s assets either directly or through one or more subsidiaries); or

               (iii) The occurrence of any of the following events while the Company is controlled by
Quicksilver or one or more Affiliates of Quicksilver:

                    (A) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 50% or more of the combined voting power of the then-outstanding Voting
Securities of Quicksilver; provided, however, that the following acquisitions will not constitute a
Change in Control: (1) any acquisition of Voting Securities of Quicksilver directly from
Quicksilver that is approved by a majority of the Incumbent Quicksilver Directors; (2) any
acquisition of the Voting Securities of Quicksilver by Quicksilver or an Affiliate of Quicksilver;
(3) any acquisition of Voting Securities of Quicksilver by the trustee or other fiduciary holding
securities under any employee benefit plan (or related trust) sponsored or maintained by
Quicksilver or any Affiliate of Quicksilver; or (4) any acquisition of Voting Securities of
Quicksilver by Mercury Exploration Company, Quicksilver Energy, L.P., The Discovery Fund,
Pennsylvania Avenue Limited Partnership, Pennsylvania Management Company, the estate of Frank
Darden, Lucy Darden, Anne Darden Self, Glenn Darden or Thomas Darden, or their respective
successors, assigns, designees, heirs, beneficiaries, trusts, estates or controlled affiliates;

                    (B) A majority of the Board of Directors of Quicksilver ceases to be comprised of Incumbent
Quicksilver Directors;

                    (C) The consummation of a reorganization, merger or consolidation of Quicksilver or sale or
other disposition of all or substantially all of the consolidated assets of Quicksilver (each, a
“Business Combination Transaction”) immediately after which the Voting Securities of Quicksilver
outstanding immediately prior to such Business Combination Transaction do not continue to represent
(either by remaining outstanding or by being converted into equity securities having voting power
in the entity surviving, resulting from, or succeeding to all or substantially all of Quicksilver’s
consolidated assets as a result of such Business Combination Transaction or any parent of such
entity) at least 50% of the combined voting power of the then outstanding equity securities having
voting power in (1) the entity surviving, resulting from, or succeeding to all or substantially all
of Quicksilver’s consolidated assets as a result of such Business Combination Transaction or (2)
any parent of any such entity (including, without limitation, an entity which as a result of such
transaction owns Quicksilver or all or substantially all of Quicksilver’s assets, either directly
or through one or more subsidiaries; or

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                    (D) The Company, or one or more Affiliates of Quicksilver, ceases to be the general partner of
the Partnership.

          (c) “Claim” means (i) any threatened, asserted, pending or completed claim, demand, action,
suit or proceeding, whether civil, criminal, administrative, arbitrative, investigative or other,
and whether made pursuant to federal, state or other law; and (ii) any threatened, pending or
completed inquiry or investigation, whether made, instituted or conducted by the Company or any
other person, including any federal, state or other governmental entity, that Indemnitee determines
might lead to the institution of any such claim, demand, action, suit or proceeding.

          (d) “Controlled Affiliate” means any corporation, limited liability company, partnership,
joint venture, trust or other entity or enterprise, whether or not for profit, that is directly or
indirectly controlled by the Company. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of an entity or enterprise, whether through the ownership of voting securities, through
other voting rights, by contract or otherwise; provided that direct or indirect beneficial
ownership of capital stock or other interests in an entity or enterprise entitling the holder to
cast 20% or more of the total number of votes generally entitled to be cast in the election of
directors (or persons performing comparable functions) of such entity or enterprise shall be deemed
to constitute control for purposes of this definition.

          (e) “Disinterested Director” means a director of the Company who is not and was not a party to
the Claim in respect of which indemnification is sought by Indemnitee.

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

          (g) “Expenses” means attorneys’ and experts’ fees and expenses and all other costs and
expenses paid or payable in connection with investigating, defending, being a witness in or
participating in (including on appeal), or preparing to investigate, defend, be a witness in or
participate in (including on appeal), any Claim.

          (h) “Incumbent Directors” means the individuals who, as of the effective date of the initial
public offering of the Units, are directors of the Company, and any individual becoming a director
of the Company subsequent to such date whose election, nomination for election by the Company’s
members, or appointment, was approved by a vote of a majority of the then Incumbent Directors
(either by a specific vote or by approval of the proxy statement of the Company in which such
person is named as a nominee for director, without objection to such nomination).

          (i) “Incumbent Quicksilver Directors” means the individuals who, as of the effective date of
the initial public offering of the Units, are directors of Quicksilver Resources Inc.
(“Quicksilver”), and any individual becoming a director of Quicksilver subsequent to such date
whose election, nomination for election by Quicksilver’s stockholders, or appointment, was approved
by a vote of a majority of the then Incumbent Directors (either by a specific vote or by approval
of the proxy statement of Quicksilver in which such person is named as a nominee for director,
without objection to such nomination).

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          (j) “Indemnifiable Claim” means any Claim based upon, arising out of or resulting from (i) any
actual, alleged or suspected act or failure to act by Indemnitee in his or her capacity as a
director, officer, employee or agent of the Company or as a director, officer, employee, member,
manager, trustee or agent of any other corporation, limited liability company, partnership, joint
venture, trust or other entity or enterprise, whether or not for profit, as to which Indemnitee is
or was serving at the request of the Company as a director, officer, employee, member, manager,
trustee or agent, (ii) any actual, alleged or suspected act or failure to act by Indemnitee in
respect of any business, transaction, communication, filing, disclosure or other activity of the
Company or any other entity or enterprise referred to in clause (i) of this sentence, or (iii)
Indemnitee’s status as a current or former director, officer, employee or agent of the Company or
as a current or former director, officer, employee, member, manager, trustee or agent of the
Company or any other entity or enterprise referred to in clause (i) of this sentence or any actual,
alleged or suspected act or failure to act by Indemnitee in connection with any obligation or
restriction imposed upon Indemnitee by reason of such status. In addition to any service at the
actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be
serving or to have served at the request of the Company as a director, officer, employee, member,
manager, trustee or agent of another entity or enterprise if Indemnitee is or was serving as a
director, officer, employee, member, manager, trustee or agent of such entity or enterprise and (i)
such entity or enterprise is or at the time of such service was a Controlled Affiliate, (ii) such
entity or enterprise is or at the time of such service was an employee benefit plan (or related
trust) sponsored or maintained by the Company or a Controlled Affiliate, or (iii) the Company or a
Controlled Affiliate directly or indirectly caused or authorized Indemnitee to be nominated,
elected, appointed, designated, employed, engaged or selected to serve in such capacity.

          (k) “Indemnifiable Losses” means any and all Losses relating to, arising out of or resulting
from any Indemnifiable Claim.

          (l) “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 any Subsidiary of the Company) or Indemnitee in any matter
material to either such party (other than with respect to matters concerning Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other
named (or, as to a threatened matter, reasonably likely to be named) party to the Indemnifiable
Claim 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.

          (m) “Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines,
penalties (whether civil, criminal or other) and amounts paid in settlement, including all
interest, assessments and other charges paid or payable in connection with or in respect of any of
the foregoing.

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

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          (o) “Subsidiary” of a Person means a corporation, partnership, limited liability company or
other entity in which such Person owns directly or indirectly more than 50% of the outstanding
shares of voting stock or other voting interest.

          (p) “Unit” means a common unit of the Partnership.

          (q) “Voting Securities” means the securities entitled to vote generally in the election of
directors or persons who serve similar functions.

     2. Indemnification Obligation. Subject to Section 7, the Company shall indemnify, defend and
hold harmless Indemnitee, to the fullest extent permitted by the laws of the State of Delaware in
effect on the date hereof or as such laws may from time to time hereafter be amended to increase
the scope of such permitted indemnification, against any and all Indemnifiable Claims and
Indemnifiable Losses; provided, however, that, except as provided in Sections 4 and 21, Indemnitee
shall not be entitled to indemnification pursuant to this Agreement in connection with any Claim
initiated by Indemnitee against the Company or any director or officer of the Company unless the
Company has joined in or consented to the initiation of such Claim.

     3. Advancement of Expenses. Indemnitee shall have the right to advancement by the Company
prior to the final disposition of any Indemnifiable Claim of any and all Expenses relating to,
arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee or which
Indemnitee determines are reasonably likely to be paid or incurred by Indemnitee. Indemnitee’s
right to such advancement is not subject to the satisfaction of any standard of conduct. Without
limiting the generality or effect of the foregoing, within five business days after any request by
Indemnitee, the Company shall, in accordance with such request (but without duplication), (a) pay
such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to
pay such Expenses, or (c) reimburse Indemnitee for such Expenses.

     4. Indemnification for Additional Expenses. Without limiting the generality or effect of the
foregoing, the Company shall indemnify and hold harmless Indemnitee against and, if requested by
Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within five business days of
such request, any and all Expenses paid or incurred by Indemnitee or which Indemnitee determines
are reasonably likely to be paid or incurred by Indemnitee in connection with any Claim made,
instituted or conducted by Indemnitee for (a) indemnification or reimbursement or advance payment
of Expenses by the Company under any provision of this Agreement, or under any other agreement or
provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims,
and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by
the Company, regardless in each case of whether Indemnitee ultimately is determined to be entitled
to such indemnification, reimbursement, advance or insurance recovery, as the case may be;
provided, however, that Indemnitee shall return, without interest, any such advance of Expenses (or
portion thereof) which remains unspent at the final disposition of the Claim to which the advance
related.

     5. Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of any Indemnifiable Loss, but not for all of
the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

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     6. Procedure for Notification. To obtain indemnification under this Agreement in respect of
an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the Company a written
request therefor, including a brief description (based upon information then available to
Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss. If, at the time of the receipt of
such request, the Company has directors’ and officers’ liability insurance in effect under which
coverage for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the Company
shall give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the
applicable insurers in accordance with the procedures set forth in the applicable policies. The
Company shall provide to Indemnitee a copy of such notice delivered to the applicable insurers, and
copies of all subsequent correspondence between the Company and such insurers regarding the
Indemnifiable Claim or Indemnifiable Loss, in each case substantially concurrently with the
delivery or receipt thereof by the Company. The failure by Indemnitee to timely notify the Company
of any Indemnifiable Claim or Indemnifiable Loss shall not relieve the Company from any liability
hereunder unless, and only to the extent that, the Company did not otherwise learn of such
Indemnifiable Claim or Indemnifiable Loss and such failure results in forfeiture by the Company of
substantial defenses, rights or insurance coverage.

     7. Determination of Right to Indemnification.

          (a) To the extent that Indemnitee shall have been successful on the merits or otherwise in
defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter
therein, including dismissal without prejudice, Indemnitee shall be indemnified against all
Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim in
accordance with Section 2 and no Standard of Conduct Determination (as defined in Section 7(b))
shall be required.

          (b) To the extent that the provisions of Section 7(a) are inapplicable to an Indemnifiable
Claim that shall have been finally disposed of, any determination of whether Indemnitee has
satisfied any applicable standard of conduct under Delaware law that is a legally required
condition precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses
relating to, arising out of or resulting from such Indemnifiable Claim (a “Standard of Conduct
Determination”) shall be made as follows: (i) if a Change in Control shall not have occurred, or
if a Change in Control shall have occurred but Indemnitee shall have requested that the Standard of
Conduct Determination be made pursuant to this clause (i), (A) by a majority vote of the
Disinterested Directors, even if less than a quorum of the Board, (B) if such Disinterested
Directors so direct, by a majority vote of a committee of Disinterested Directors designated by a
majority vote of all Disinterested Directors, or (C) if there are no such Disinterested Directors,
by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be
delivered to Indemnitee; and (ii) if a Change in Control shall have occurred and Indemnitee shall
not have requested that the Standard of Conduct Determination be made pursuant to clause (i), by
Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered
to Indemnitee. Indemnitee will cooperate with the person or persons making such Standard of
Conduct Determination, including providing to such person or persons, upon reasonable advance
request, any documentation or information which is not privileged or otherwise protected from
disclosure and which is reasonably available to Indemnitee and reasonably necessary to such
determination. The Company shall indemnify and hold harmless Indemnitee against and, if requested
by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within five business days
of such request, any and all costs and

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expenses (including attorneys’ and experts’ fees and expenses) incurred by Indemnitee in so
cooperating with the person or persons making such Standard of Conduct Determination.

          (c) The Company shall use its reasonable best efforts to cause any Standard of Conduct
Determination required under Section 7(b) to be made as promptly as practicable. If (i) the person
or persons empowered or selected under Section 7 to make the Standard of Conduct Determination
shall not have made a determination within 30 days after the later of (A) receipt by the Company of
written notice from Indemnitee advising the Company of the final disposition of the applicable
Indemnifiable Claim (the date of such receipt being the “Notification Date”) and (B) the selection
of an Independent Counsel, if such determination is to be made by Independent Counsel, that is
permitted under the provisions of Section 7(e) to make such determination and (ii) Indemnitee shall
have fulfilled his/her obligations set forth in the second sentence of Section 7(b), then
Indemnitee shall be deemed to have satisfied the applicable standard of conduct; provided that such
30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the
person or persons making such determination in good faith requires such additional time for the
obtaining or evaluation or documentation and/or information relating thereto.

          (d) If (i) Indemnitee shall be entitled to indemnification hereunder against any Indemnifiable
Losses pursuant to Section 7(a), (ii) no determination of whether Indemnitee has satisfied any
applicable standard of conduct under Delaware law is a legally required condition precedent to
indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has
been determined or deemed pursuant to Section 7(b) or (c) to have satisfied any applicable standard
of conduct under Delaware law which is a legally required condition precedent to indemnification of
Indemnitee hereunder against any Indemnifiable Losses, then the Company shall pay to Indemnitee,
within five business days after the later of (x) the Notification Date in respect of the
Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are related, out of which
such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted and (y) the
earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) above shall
have been satisfied, an amount equal to the amount of such Indemnifiable Losses.

          (e) If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to
Section 7(b)(i), the Independent Counsel shall be selected by the Board of Directors, and the
Company shall give written notice to Indemnitee advising him or her of the identity of the
Independent Counsel so selected. If a Standard of Conduct Determination is to be made by
Independent Counsel pursuant to Section 7(b)(ii), the Independent Counsel shall be selected by
Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of
the Independent Counsel so selected. In either case, Indemnitee or the Company, as applicable,
may, within five business days after receiving written notice of selection from the other, deliver
to the other 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 satisfy the criteria
set forth in the definition of “Independent Counsel” in Section 1(l), and the objection shall set
forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the person or firm so selected shall act as Independent Counsel. If such written
objection is properly and timely made and substantiated, (i) the Independent Counsel so 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 and (ii) the non-objecting party may, at

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its option, select an alternative Independent Counsel and give written notice to the other
party advising such other party of the identity of the alternative Independent Counsel so selected,
in which case the provisions of the two immediately preceding sentences and clause (i) of this
sentence shall apply to such subsequent selection and notice. If applicable, the provisions of
clause (ii) of the immediately preceding sentence shall apply to successive alternative selections.
If no Independent Counsel that is permitted under the foregoing provisions of this Section 7(e) to
make the Standard of Conduct Determination shall have been selected within 30 days after the
Company gives its initial notice pursuant to the first sentence of this Section 7(e) or Indemnitee
gives its initial notice pursuant to the second sentence of this Section 7(e), as the case may be,
either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware for
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 or
firm selected by the Court or by such other person as the Court shall designate, and the person or
firm with respect to whom all objections are so resolved or the person or firm so appointed will
act as Independent Counsel. In all events, the Company shall pay all of the reasonable fees and
expenses of the Independent Counsel incurred in connection with the Independent Counsel’s
determination pursuant to Section 7(b).

     8. Presumption of Entitlement. In making any Standard of Conduct Determination, the person or
persons making such determination shall presume that Indemnitee has satisfied the applicable
standard of conduct, and the Company may overcome such presumption only by its adducing clear and
convincing evidence to the contrary. Any Standard of Conduct Determination that is adverse to
Indemnitee may be challenged by Indemnitee in the Court of Chancery of the State of Delaware. No
determination by the Company (including by its directors or any Independent Counsel) that
Indemnitee has not satisfied any applicable standard of conduct shall be a defense to any Claim by
Indemnitee for indemnification or reimbursement or advance payment of Expenses by the Company
hereunder or create a presumption that Indemnitee has not met any applicable standard of conduct.

     9. No Other Presumption. For purposes of this Agreement, the termination of any Claim by
judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea
of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not meet
any applicable standard of conduct or that indemnification hereunder is otherwise not permitted.

     10. Non-Exclusivity. The rights of Indemnitee hereunder will be in addition to any other
rights Indemnitee may have under the Constituent Documents, or the substantive laws of the
Company’s jurisdiction of incorporation, any other contract or otherwise (collectively, “Other
Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would
have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be
deemed to have such greater right hereunder and (b) to the extent that any change is made to any
Other Indemnity Provision which permits any greater right to indemnification than that provided
under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right
hereunder. Except as set forth in the proviso to the immediately preceding sentence, the Other
Indemnity Provisions shall not be taken into account in construing or apply the provisions of this
Agreement, which are intended to operate independently of the Other Indemnity Provisions. The
Company will not adopt any amendment

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to any of the Constituent Documents the effect of which would be to deny, diminish or encumber
Indemnitee’s right to indemnification under this Agreement or any Other Indemnity Provision.

     11. Liability Insurance and Funding. For the duration of Indemnitee’s service as a director
and/or officer of the Company, and thereafter for so long as Indemnitee shall be subject to any
pending or possible Indemnifiable Claim, the Company shall use commercially reasonable efforts
(taking into account the scope and amount of coverage available relative to the cost thereof) to
cause to be maintained in effect policies of directors’ and officers’ liability insurance providing
coverage for directors and/or officers of the Company that is at least substantially comparable in
scope and amount to that provided by the Company’s current policies of directors’ and officers’
liability insurance. The Company shall provide Indemnitee with a copy of all directors’ and
officers’ liability insurance applications, binders, policies, declarations, endorsements and other
related materials, and shall provide Indemnitee with a reasonable opportunity to review and comment
on the same. Without limiting the generality or effect of the two immediately preceding sentences,
the Company shall not discontinue or significantly reduce the scope or amount of coverage from one
policy period to the next (i) without the prior approval thereof by a majority vote of the
Incumbent Directors, even if less than a quorum, or (ii) if at the time that any such
discontinuation or significant reduction in the scope or amount of coverage is proposed there are
no Incumbent Directors, without the prior written consent of Indemnitee (which consent shall not be
unreasonably withheld or delayed). In all policies of directors’ and officers’ liability insurance
obtained by the Company, Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits, subject to the same limitations, as are accorded to the
Company’s directors and officers most favorably insured by such policy. The Company may, but shall
not be required to, create a trust fund, grant a security interest or use other means, including a
letter of credit, to ensure the payment of such amounts as may be necessary to satisfy its
obligations to indemnify and advance expenses pursuant to this Agreement.

     12. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee
against other Persons (other than Indemnitee’s successors), including any entity or enterprise
referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(j). Indemnitee
shall execute all papers reasonably required to evidence such rights (all of Indemnitee’s
reasonable Expenses, including attorneys’ fees and charges, related thereto to be reimbursed by or,
at the option of Indemnitee, advanced by the Company).

     13. No Duplication of Payments. The Company shall not be liable under this Agreement to make
any payment to Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee has
otherwise actually received payment (net of Expenses incurred in connection therewith) under any
insurance policy, the Constituent Documents and Other Indemnity Provisions or otherwise (including
from any entity or enterprise referred to in clause (i) of the definition of “Indemnifiable Claim”
in Section 1(j)) in respect of such Indemnifiable Losses otherwise indemnifiable hereunder.

     14. Indemnification of Quicksilver. The Company shall indemnify, defend and hold Quicksilver
harmless against, and shall advance expenses to Quicksilver in the same manner as contemplated by
Section 3 in connection with, any and all obligations of Quicksilver to indemnify, hold harmless or
advance expenses to Indemnitee against or in connection with any

10

 

Indemnifiable Claim (including any and all Losses, costs and expenses incurred, experienced,
advanced, paid or payable by Quicksilver pursuant to or as a result of any such obligations). This
covenant is intended to be for the benefit of, and shall be enforceable by, Quicksilver and any
successor to Quicksilver.

     15. Defense of Claims. The Company shall be entitled to participate in the defense of any
Indemnifiable Claim or to assume the defense thereof, with counsel reasonably satisfactory to
Indemnitee; provided that if Indemnitee believes, after consultation with counsel selected by
Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present
such counsel with an actual or potential conflict, (b) the named parties in any such Indemnifiable
Claim (including any impleaded parties) include both the Company and Indemnitee and Indemnitee
shall conclude that there may be one or more legal defenses available to him or her that are
different from or in addition to those available to the Company, or (c) any such representation by
such counsel would be precluded under the applicable standards of professional conduct then
prevailing, then Indemnitee shall be entitled to retain separate counsel (but not more than one law
firm plus, if applicable, local counsel in respect of any particular Indemnifiable Claim) at the
Company’s expense. The Company shall not be liable to Indemnitee under this Agreement for any
amounts paid in settlement of any threatened or pending Indemnifiable Claim effected without the
Company’s prior written consent. The Company shall not, without the prior written consent of
Indemnitee, effect any settlement of any threatened or pending Indemnifiable Claim to which
Indemnitee is, or could have been, a party unless such settlement solely involves the payment of
money and includes a complete and unconditional release of Indemnitee from all liability on any
claims that are the subject matter of such Indemnifiable Claim. Neither the Company nor Indemnitee
shall unreasonably withhold its consent to any proposed settlement; provided that Indemnitee may
withhold consent to any settlement that does not provide a complete and unconditional release of
Indemnitee.

16. Successors and Binding Agreement.

          (a) The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) to all or substantially all of the business or assets
of the Company, by agreement in form and substance satisfactory to Indemnitee and his or her
counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same
extent the Company would be required to perform if no such succession had taken place. This
Agreement shall be binding upon and inure to the benefit of the Company and any successor to the
Company, including any Person acquiring directly or indirectly all or substantially all of the
business or assets of the Company whether by purchase, merger, consolidation, reorganization or
otherwise (and such successor will thereafter be deemed the “Company” for purposes of this
Agreement), but shall not otherwise be assignable or delegatable by the Company.

          (b) This Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, heirs, distributees, legatees and
other successors.

          (c) This Agreement is personal in nature and neither of the parties hereto shall, without the
consent of the other, assign or delegate this Agreement or any rights or obligations hereunder
except as expressly provided in Sections 16(a) and 15(b). Without

11

 

limiting the generality or effect of the foregoing, Indemnitee’s right to receive payments
hereunder shall not be assignable, whether by pledge, creation of a security interest or otherwise,
other than by a transfer by Indemnitee’s will or by the laws of descent and distribution, and, in
the event of any attempted assignment or transfer contrary to this Section 16(c), the Company shall
have no liability to pay any amount so attempted to be assigned or transferred.

     17. Notices. For all purposes of this Agreement, all communications, including notices,
consents, requests or approvals, required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given when hand delivered or dispatched by electronic
facsimile transmission (with receipt thereof orally confirmed), or five business days after having
been mailed by United States registered or certified mail, return receipt requested, postage
prepaid or one business day after having been sent for next-day delivery by a nationally recognized
overnight courier service, addressed to the Company (to the attention of the Secretary of the
Company) and to Indemnitee at the applicable address shown on the signature page hereto, or to such
other address as any party may have furnished to the other in writing and in accordance herewith,
except that notices of changes of address will be effective only upon receipt.

     18. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by and construed in accordance with the substantive laws of the State
of Delaware, without giving effect to the principles of conflict of laws of such State. The
Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of
the State of Delaware for all purposes in connection with any action or proceeding which arises out
of or relates to this Agreement and agree that any action instituted under this Agreement shall be
brought only in the Chancery Court of the State of Delaware.

     19. Validity. If any provision of this Agreement or the application of any provision hereof
to any Person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of
this Agreement and the application of such provision to any other Person or circumstance shall not
be affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal.
In the event that any court or other adjudicative body shall decline to reform any provision of
this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the
immediately preceding sentence, the parties hereto shall take all such action as may be necessary
or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal
with one or more alternative provisions that effectuate the purpose and intent of the original
provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise
illegal.

     20. Miscellaneous. No provision of this Agreement may be waived, modified or discharged
unless such waiver, modification or discharge is agreed to in writing signed by Indemnitee and the
Company. No waiver by either party hereto at any time of any breach by the other party hereto or
compliance with any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or representations, oral or otherwise, expressed or
implied with respect to the subject matter hereof have been made by either party that are not set
forth expressly in this Agreement.

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     21. Legal Fees and Expenses. It is the intent of the Company that Indemnitee not be required
to incur legal fees and or other Expenses associated with the interpretation, enforcement or
defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and
expense thereof would substantially detract from the benefits intended to be extended to Indemnitee
hereunder. Accordingly, without limiting the generality or effect of any other provision hereof,
if it should appear to Indemnitee that the Company has failed to comply with any of its obligations
under this Agreement or in the event that the Company or any other Person takes or threatens to
take any action to declare this Agreement void or unenforceable, or institutes any litigation or
other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided
or intended to be provided to Indemnitee hereunder, the Company irrevocably authorizes Indemnitee
from time to time to retain counsel of Indemnitee’s choice, at the expense of the Company as
hereafter provided, to advise and represent Indemnitee in connection with any such interpretation,
enforcement or defense, including the initiation or defense of any litigation or other legal
action, whether by or against the Company or any director, officer, member or other person
affiliated with the Company, in any jurisdiction. Notwithstanding any existing or prior
attorney-client relationship between the Company and such counsel, the Company irrevocably consents
to Indemnitee’s entering into an attorney-client relationship with such counsel, and in that
connection the Company and Indemnitee agree that a confidential relationship shall exist between
Indemnitee and such counsel. Without respect to whether Indemnitee prevails, in whole or in part,
in connection with any of the foregoing, the Company will pay and be solely financially responsible
for any and all attorneys’ and related fees and expenses incurred by Indemnitee in connection with
any of the foregoing.

     22. Certain Interpretive Matters. Unless the context of this Agreement otherwise requires,
(a) “it” or “its” or words of any gender include each other gender, (b) words using the singular or
plural number also include the plural or singular number, respectively, (c) the terms “hereof,”
“herein,” “hereby” and derivative or similar words refer to this entire Agreement, (d) the terms
“Article,” “Section,” “Annex” or “Exhibit” refer to the specified Article, Section, Annex or
Exhibit of or to this Agreement, (e) the terms “include,” “includes” and “including” will be deemed
to be followed by the words “without limitation” (whether or not so expressed), and (f) the word
“or” is disjunctive but not exclusive. Whenever this Agreement refers to a number of days, such
number will refer to calendar days unless business days are specified and whenever action must be
taken (including the giving of notice or the delivery of documents) under this Agreement during a
certain period of time or by a particular date that ends or occurs on a non-business day, then such
period or date will be extended until the immediately following business day. As used herein,
“business day” means any day other than Saturday, Sunday or a United States federal holiday. The
Section headings contained in this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

     23. Counterparts. This Agreement may be executed in one or more counterparts, each of which
will be deemed to be an original but all of which together shall constitute one and the same
agreement.

[Signatures Appear On Following Page]

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     IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized
representative to execute this Agreement as of the date first above written.

	 	 	 	 	 
	 	QUICKSILVER GAS SERVICES GP LLC

777 West Rosedale, Suite 300

Fort Worth, Texas 76104

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 

[INDEMNITEE]

[Address]

 	 
	 	 	 
	 	[Indemnitee] 	 
	 	 	 	 
	 

14

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