Document:

Executive Change in Control Retention Incentive Plan

 Exhibit 10.3 
  
 QUICKSILVER RESOURCES INC. 
 EXECUTIVE 
 CHANGE IN CONTROL RETENTION INCENTIVE PLAN 
  
 WHEREAS, Quicksilver Resources Inc., a Delaware corporation (the
“Company”) considers it to be in the best interests of its stockholders to encourage the continued employment of certain Executives (as defined herein) notwithstanding the possibility, threat or occurrence of a Change in Control (as
defined herein); 
  
 WHEREAS, the Company believes that the
possibility of the occurrence of a Change in Control may result in the termination by the Executive of the Executive’s employment by the Company or in the distraction of the Executive from the performance of his or her duties to the Company, in
either case to the detriment of the Company and its stockholders; 
  
 WHEREAS, the Company recognizes that the Executive could suffer adverse financial and professional consequences if a Change in Control were to occur; and 
  
 WHEREAS, the Company has determined that it is advisable to establish a severance benefit program to protect the
Executive if a Change in Control occurs, thereby encouraging the Executive to remain in the employ of the Company and not to be distracted from the performance of his or her duties to the Company by the possibility of a Change in Control.

  
 NOW, THEREFORE, the Company adopts the Quicksilver
Resources Inc. Executive Change in Control Retention Incentive Plan, the terms of which are as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 1.1 “Base Salary” means the Participant’s annual gross
salary before any deductions, exclusions or any deferrals or contributions under any Company plan or program, but excluding bonuses, incentive compensation, deferred compensation, employee benefits, expense reimbursements or any other non-salary
form of compensation being received by a Participant (determined without regard to any reduction in such Base Salary that occurs after a Change in Control). 
  
 1.2 “Benchmark Bonus” means the greater of (a) the average of the three annual bonuses earned by the Participant under the terms of the
Company’s annual incentive plan for three consecutive fiscal years of the Company immediately preceding the Change in Control event (or, if the Participant has been employed for fewer than three fiscal years of the Company, the average of all
annual bonuses earned by the Participant under the terms of the Company’s annual incentive plan for the fiscal years immediately preceding the Change in Control event) or (b) the annual bonus that would be payable to the Participant if the
target level of performance was achieved for that year under the terms of the Company’s annual incentive plan applicable to such Participant. In the event that a Participant received a bonus in a year in which he was not employed for the entire
12 months of that year, such bonus will be annualized for purposes of determining the average as set forth in this Article 1.2(a). 
  
 1.3 “Benefits” means the severance benefits a Participant is entitled to receive pursuant to Article 3 hereof, and any retention bonus a
Participant is entitled to receive pursuant to Article 5 hereof. 

 1.4 “Board” means the Board of Directors of the Company or its direct or indirect
parent. 
  
 1.5 “Cause” means (a) the conviction
of the Participant for any felony involving dishonesty, fraud or breach of trust or (b) the willful engagement by the Participant in gross misconduct in the performance of his or her duties that materially injures the Company. For purposes of this
Plan, no act or failure to act on the part of the Participant shall be deemed “willful” if it was due primarily to an error in judgment or negligence, but shall be deemed “willful” only if done or omitted to be done by the
Executive not in good faith and without reasonable belief that the Participant’s action or omission was in the best interest of the Company. Notwithstanding the foregoing, solely for purposes of this Plan, the Participant shall not be deemed to
have been terminated for “Cause” hereunder unless and until there shall have been delivered to the Participant a copy of a resolution duly adopted by the affirmative vote of not less than three quarters of the Board then in office at a
meeting of the Board called and held for such purpose, after reasonable notice to the Participant and an opportunity for the Participant, together with the Participant’s counsel (if the Participant chooses to have counsel present at such
meeting), to be heard before the Board, finding that, in the good faith opinion of the Board, the Participant had committed an act constituting “Cause” as herein defined and specifying the particulars thereof in detail. Nothing herein will
limit the right of the Participant or his beneficiaries to contest the validity or propriety of any such determination. 
  
 1.6 “Change in Control” means the occurrence of any of the following after the Effective Date: 
  
 (a) any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934 (“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 Stock of the Company; provided, however, that the following acquisitions shall not constitute a Change in Control: (i) any acquisition of Voting Stock of the Company directly from the Company that is approved by a majority of
the Incumbent Directors; (ii) any acquisition of Voting Stock of the Company by the Company or any Subsidiary of the Company; (iii) any acquisition of Voting Stock of the Company by the trustee or other fiduciary holding securities under any
employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary of the Company; and (iv) any acquisition of Voting Stock of the Company 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
ceases to be comprised of Incumbent Directors; or 
  
 (c) the
consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the consolidated assets of the Company (each, a “Business Combination Transaction”) immediately after which the Voting
Stock of the Company outstanding immediately prior to such Business Combination Transaction does not continue to represent (either by remaining outstanding or by being converted into Voting Stock of the entity 
  

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 surviving, resulting from, or succeeding to all or substantially all of the Company’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 shares of Voting Stock of the entity surviving, resulting from, or succeeding to all or substantially
all of the Company’s consolidated assets as a result of, such Business Combination Transaction or any parent of any such entity (including, without limitation, an entity which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more subsidiaries). 
  
 For purposes of this Plan, (i) “Incumbent Directors” means the individuals who, as of the date hereof, are Directors of the Company and any individual becoming a Director subsequent to the date hereof whose
election, nomination for election by the Company’s shareholders, 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) and (ii) “Voting Stock” means securities entitled to vote generally in the election of Directors. 
  
 1.7 “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 1.8 “Company” means Quicksilver
Resources Inc. The term “Company” shall also include any Successor, whether the liability of such Successor under the Plan is established by contract or occurs by operation of law. 
  
 1.9 “Effective Date” means the date on which the Plan is
adopted. 
  
 1.10 “Employment Termination Date”
means the date on which the employment relationship between the Participant and the Company is terminated due to an Involuntary Termination. 
  
 1.11 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 1.12 “Executive” means an employee of the Company or a
Subsidiary whose name appears on Exhibit B which is attached hereto and made a part hereof for all purposes, as the same may be amended in the Company’s discretion from time to time (subject to Article 9). 
  
 1.13 “Good Reason Event” means the occurrence of one or more
of the following events or conditions after the occurrence of a Change in Control: 
  
 (a) the Company removes the Participant from, or fails to re-elect or appoint the Participant to, any duties or position with the Company that were assigned or held by the Participant immediately before the occurrence
of the Change in Control, except that a nominal change in the Participant’s title that is merely descriptive and does not affect rank or status shall not constitute such an event; 
  
 (b) the Company or a Subsidiary assigns to the Participant any duties inconsistent with the Participant’s position
(including offices, titles and reporting requirements), 
  

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 authority, duties or responsibilities with the Company or a Subsidiary in effect immediately before the occurrence of the
Change in Control; 
  
 (c) the Company takes any action that
results in a material diminution of the Participant’s position, authority, duties or responsibilities or otherwise takes any action that materially interferes therewith; 
  
 (d) the Company reduces the Participant’s Base Salary or Benchmark Bonus; 
  
 (e) the Company or a Subsidiary relocates the Participant’s principal
workplace to an area that is located outside of a radius of 50 miles from the location of the Participant’s principal workplace immediately prior to the Change in Control, or requires the Participant to perform a majority of his or her duties
more than 50 miles from the Participant’s principal work location (determined as of the date of the Change in Control) for a period of more than 21 consecutive days or for more than 90 days in any calendar year; 
  
 (f) the Company or a Subsidiary fails to (1) continue in effect any bonus,
incentive, profit sharing, performance, savings, retirement or pension policy, plan, program or arrangement (such policies, plans, programs and arrangements collectively being referred to herein as “Basic Benefit Plans”), including, but
not limited to, any deferred compensation, supplemental executive retirement or other retirement income, stock option, stock purchase, stock appreciation, or similar policy, plan, program or arrangement of the Company or a Subsidiary, in which the
Participant was a participant immediately before the occurrence of the Change in Control, unless an equitable and reasonably comparable arrangement (embodied in a substitute or alternative benefit or plan) shall have been made with respect to such
Basic Benefit Plan promptly following the occurrence of the Change in Control, or (2) continue the Participant’s participation in any Basic Benefit Plan (or any substitute or alternative plan) on substantially the same basis, both in terms of
the amount of benefits provided to the Participant (which are in any event always subject to the terms of any applicable Basic Benefit Plan) and the level of the Participant’s participation relative to other participants, as existed immediately
before the occurrence of the Change in Control; 
  
 (g) the
Company or a Subsidiary fails to continue to provide the Participant with benefits substantially similar to those enjoyed by the Participant under any of the Company’s or a Subsidiary’s other benefit plans, policies, programs and
arrangements, including, but not limited to, life insurance, medical, dental, health, hospital, accident or disability plans, in which the Participant was a participant immediately before the occurrence of the Change in Control; 
  
 (h) the Company takes any action that would directly or indirectly materially
reduce any other non-contractual benefits that were provided to the Participant by the Company immediately before the occurrence of the Change in Control or deprive the Participant of any material fringe benefit enjoyed by him or her immediately
before the occurrence of the Change in Control; 
  

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 (i) the Company fails to provide the Participant with the number of paid vacation days to which he or she
was entitled in accordance with the Company’s vacation policy in effect immediately before the occurrence of the Change in Control; 
  
 (j) the Company fails to continue to provide the Participant with office space, related facilities and support personnel (including, but not limited to,
administrative and secretarial assistance) (1) that are both commensurate with Participant’s responsibilities to and position with the Company immediately before the occurrence of the Change in Control and not materially dissimilar to the
office space, related facilities and support personnel provided to employees of the Company having comparable responsibility to the Participant, or (2) that are physically located at the Company’s principal executive offices; 
  
 (k) the Company fails to honor any provision of this Plan; or 
  
 (l) the Company gives effective notice of an election to terminate at the end
of the term or extended the term of any employment agreement that the Participant has or may in the future have with the Company or the Successor in accordance with the terms of any such agreement. 
  
 1.14 “Involuntary Termination” means the termination of a
Participant’s employment relationship with the Company and each Subsidiary (i) by the Company or a Subsidiary for any reason other than Cause, or (ii) by the Participant on account of a Good Reason Event. For purposes of the Plan, a
Participant’s termination will not be considered to be on account of a Good Reason Event unless the Participant terminates employment no more than 60 days following such Good Reason Event. 
  
 1.15 “Participant” means an individual who is an Executive
on the date a Change in Control occurs. An individual who is classified by the Company as a temporary employee or an independent contractor on the date of which a Change in Control occurs is not eligible to participate in the Plan (even if he or she
is subsequently reclassified by the Internal Revenue Service or a court as a common law employee of the Company and the Company acquiesces to such reclassification). Notwithstanding the foregoing, in the event that an Executive has entered into an
employment agreement with the Company or a Subsidiary, such Executive will not be deemed a Participant under this Plan unless such employment agreement specifically adopts and incorporates this Plan by reference. 
  
 1.16 “Person” means any individual, entity or group that is
a “person” within the meaning of Section 3(a)(9), 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended. 
  
 1.17 “Plan” means the Quicksilver Resources Inc. Executive Change in Control Retention Incentive Plan, as set forth herein and as amended
from time to time. 
  
 1.18 “Plan Administrator”
means the Company; however, the Company may designate any Person or a committee to administer the Plan in accordance with the provisions of Article 8. 
  

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 1.19 “Release” means the Release Agreement in substantially the form attached hereto as
Exhibit A and made a part hereof for all purposes. 
  
 1.20
“Subsidiary” means a corporation, partnership, limited liability company or other entity in which the Company owns directly or indirectly more than 50% of the outstanding shares of voting stock or other voting interest. 

 
 1.21 “Successor” means a person with or into which the
Company shall have been merged or consolidated or to which the Company shall have transferred all or substantially all of its assets. 
  
 ARTICLE 2 
 ELIGIBILITY

  
 (a) Except as specified herein, a Participant who incurs
an Involuntary Termination within two years after the occurrence of a Change in Control (including such a termination on the date of the Change in Control) shall be entitled to the severance benefits described in Article 3 hereof, provided the
Participant executes and delivers to the Company a Release and does not exercise any right specified in the Release to revoke such Release. 
  
 (b) The Plan does not provide benefits with respect to any termination of employment prior to the occurrence of a Change in Control, whether such
termination is for Cause or otherwise. A Participant will forfeit all Benefits under the Plan if he or she is discharged by the Company for Cause. 
  
 ARTICLE 3 
 CHANGE IN CONTROL BENEFITS

  
 The Company shall pay or provide a Participant who has
satisfied the requirements of Article 2 hereof the following Benefits: 
  
 (a) A single sum cash payment equal to three times the sum of (i) the Participant’s Base Salary, plus (ii) the Participant’s Benchmark Bonus. 
  

(b) To the extent permitted by law, the Company shall take all actions necessary to cause the Participant’s account balances under the
Company’s 401(k) Plan to become fully vested and nonforfeitable. 
  
 (c) All outstanding stock options and restricted stock awards held by the Participant shall immediately become fully vested. 
  
 (d) The Company (at its sole expense) shall take the following actions: 
  
 (i) Throughout the two years following the Employment Termination Date, the Company shall maintain in
effect, and not materially reduce the benefits provided by the group health insurance and group life insurance plans in which the Participant participated immediately prior to the Employment Termination Date; and 
  

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 (ii) the Company shall arrange for the Participant’s uninterrupted participation
throughout the two-year period commencing on the Participant’s Employment Termination Date in such group health insurance and group life insurance plans, provided that if the Participant’s participation after his or her Employment
Termination Date in any such plan is not permitted by the terms of that plan, then throughout such two year period, the Company (at its sole expense) shall provide the Participant with substantially the same benefits that were provided to the
Participant under such plan immediately before the Employment Termination Date. 
  
 (e) Benefits under the Plan shall not be taken into account as compensation for purposes of determining contributions or benefits under any other employee benefit plan of the Company or a Subsidiary. In addition,
Benefits under the Plan shall be reduced by any severance, termination or similar payments payable to a Participant pursuant to any employment, change in control, severance or similar agreement with the Company or a Subsidiary. 
  
 ARTICLE 4 
 TIME OF SEVERANCE PAYMENT 
  
 The Company shall pay the Participant the cash severance benefits described in paragraph (a) of Article 3 within the later of 30 days after the Participant’s Employment Termination Date or five days after the
Participant’s Release described in Article 2 becomes irrevocable. 
  
 ARTICLE 5 
 RETENTION BONUS 
  
 If a Participant remains employed by the Company or a Subsidiary throughout the six-month period following a Change in Control, then six months after the
date of the Change in Control the Company shall pay to the Participant, in a single cash payment, a retention bonus equal to one-half (1/2) of the Participant’s Base Salary (without regard to whether the Participant is or ever will become
entitled to severance benefits under Article 3 hereof). 
  
 ARTICLE 6 
 LIMITATION ON PAYMENT OF BENEFITS 
  
 Notwithstanding any provision of this Plan to the contrary, if any amount or benefit to be paid or provided under this Plan
would be an “Excess Parachute Payment,” within the meaning of Section 280G of the Code, but for the application of this sentence, then the payments and benefits to be paid or provided under this Plan will be reduced to the minimum extent
necessary (but in no event to less than zero) so that no portion of any such payment or benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however, that the foregoing reduction will be made only if and to the extent that such
reduction would result in an increase in the aggregate payment and benefits to be provided, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Code, any tax imposed by any comparable
provision of state law, and any applicable federal, state and local income and employment taxes). Whether requested by the Participant or the Company, the determination of whether any reduction in such payments or benefits to be provided under this
Plan or otherwise 
  

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 is required pursuant to the preceding sentence will be made at the expense of the Company by the Company’s
independent accountants in effect prior to the Change in Control. The fact that the Participant’s right to payments or benefits may be reduced by reason of the limitations contained in this Article will not of itself limit or otherwise affect
any other rights of the Participant other than pursuant to this Plan. In the event that any payment or benefit intended to be provided under this Plan or otherwise is required to be reduced pursuant to this Article, the Participant will be entitled
to designate the payments and/or benefits to be so reduced in order to give effect to this Article. The Company will provide the Participant with all information reasonably requested by the Participant to permit the Participant to make such
designation. In the event that the Participant fails to make such designation within 10 business days of the Employment Termination Date, the Company may effect such reduction in any manner it deems appropriate. 
  
 ARTICLE 7 
 UNFUNDED ARRANGEMENT 
  
 The plan is unfunded, and all cash Benefits will be paid, as needed, from the general assets of the Company. The Plan is only a general corporate commitment and each Participant must rely upon the general credit of
the Company for the fulfillment of its obligations hereunder. Under all circumstances the rights of Participants to any asset held by the Company will be no greater than the rights expressed in this Plan. Nothing contained in this Plan shall
constitute a guarantee by the Company that the assets of the Company will be sufficient to pay any Benefits under this Plan or would place the Participant in a secured position ahead of general creditors of the Company; the Participants are only
unsecured creditors of the Company with respect to their Plan benefits, and the Plan constitutes a mere promise by the Company to make Benefit payments in the future. No specific assets of the Company have been or shall be set aside, or shall in any
way be transferred to a trust or shall be pledged in any way for the performance of the Company’s obligations under the Plan which would remove such assets from being subject to the general creditors of the Company. 
  
 ARTICLE 8 
 ADMINISTRATION OF THE PLAN 
  
 The Plan Administrator shall have the full power and authority to administer the Plan, carry out its terms and conditions and effectuate its purposes. The Plan Administrator shall be the “named fiduciary,”
as such term is defined in ERISA, of the Plan, with responsibility for administration of the Plan. 
  
 The Plan Administrator shall serve without compensation for its services as such. However, all reasonable expenses of the Plan Administrator shall be paid
or reimbursed by the Company upon proper documentation. The Plan Administrator shall be indemnified by the Company against personal liability for actions taken in good faith in the discharge of duties as the Plan Administrator. 
  
 The Plan Administrator shall keep all individual and group records relating
to participants and former participants and all other records necessary for the proper operation of the Plan. Such records shall be made available to the Company and to each Participant for examination 
  

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 during business hours except that a Participant shall examine only such records as pertain exclusively to the examining
Participant and to the Plan. The Plan Administrator shall prepare and shall file as required by law or regulation all reports, forms, documents and other items required by ERISA, and every other relevant statute, each as amended, and all regulations
thereunder (except that the Company, as payor of the Benefits, shall prepare and distribute to the proper recipients all forms relating to withholding of income or wage taxes, Social Security taxes, and other amounts which may be similarly
reportable). 
  
 ARTICLE 9 
 AMENDMENT OR TERMINATION 
  
 The Board reserves the right to amend or terminate the Plan at any time and in any manner without the consent of any affected individual, provided that
any amendment or termination will not adversely affect the Benefits payable to a Participant whose Employment Termination Date occurred prior to the date of such amendment or termination. The right to amend the Plan includes the right to change the
individuals who are eligible to participate in the Plan from time to time. Notwithstanding the foregoing, for a period of two years following a Change in Control, the Plan may not be terminated, or amended in any manner adverse to any eligible
Participant without the written consent of each affected Participant. 
  
 ARTICLE 10 
 CLAIMS PROCEDURES 
  

	 	10.1	Claim for Benefits. 

  
 When a Benefit is due, a Claimant may submit a claim for Benefits to the office designated by the Plan Administrator to receive claims. For purposes of
this Article, “Claimant” means a Participant or an authorized representative of a Participant who makes a claim for Benefits under the Plan. 
  

	 	10.2	Deadline for Notifications of Claim Determinations. 

  
 If a Claimant’s claim for Benefits under the Plan is denied in whole or in part, the Plan Administrator will provide to the Claimant a written notice
of the claim decision within 90 days of receipt of the claim. This 90-day period may be extended one time by the Plan Administrator for up to 90 days, provided that the Plan Administrator notifies the Claimant, prior to the expiration of such 90-day
period, of the circumstances requiring the extension of time and the date by which the Plan Administrator expects to render a decision. Claims not acted upon within the time prescribed herein shall be deemed denied for purposes of proceeding to the
review stage. 
  

	 	10.3	Contents of Notices of Claims Denials. 

  
 When a claim is denied (an adverse determination) in full or in part, the Plan Administrator will provide the Claimant a written or electronic
notification of the denial within the time frame specified in Section 9.1. This notice will: 
  
 (a) explain the specific reasons for the adverse determination; 
  

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 (b) reference the specific Plan provisions on which the adverse determination is based; 
  
 (c) provide a description of any additional material or information necessary
for the Claimant to complete the claim and an explanation of why such material or information is necessary; and 
  
 (d) provide a description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the
Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse claims determination on review. 
  

	 	10.4	Appeals of Denied Claims. 

  
 The Claimant will have 60 days after receiving the notice that the Claimant’s claim is denied to appeal the adverse determination in writing to the
Plan Administrator. The Claimant may submit written comments, documents, records, and other information relevant to the claim, and such information will be taken into account during the review, without regard to whether it was submitted or
considered in the initial claim determination. In addition, the Claimant will be provided, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim. 
  
 If no appeal of the adverse determination is made in writing to the Plan
Administrator within 60 days after the Claimant’s receipt of the notice of denial, the denial of the claim is final. 
  

	 	10.5	Deadlines for Notifications of Appeals Determinations. 

  
 The Administrator will notify the Claimant of its determination on review of an adverse claim determination within a reasonable period of time, but not
later than 60 days from receipt of a request for review of the adverse determination. This 60-day period may be extended one time by the Plan Administrator for up to 60 days, provided that the Plan Administrator notifies the Claimant, prior to the
expiration of such 60-day period, of the circumstances requiring the extension of time and the date by which the Plan Administrator expects to render a decision. 
  

	 	10.6	Contents of Notices of Final Claims Determinations. 

  
 Notice of the Plan’s claims decision will be given in writing or electronically. If the Claimant’s claim is denied in whole or in part the
notification will include: 
  
 (a) the specific reasons for the
denial; 
  
 (b) reference to the specific Plan provisions on which
the decision was based; 
  
 (c) a statement of the Claimant’s
right to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim; and 
  

(d) a statement of the Claimant’s right to bring a civil action in court under section 502(a) of ERISA. 
  

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 ARTICLE 11 
 MISCELLANEOUS 
  
 11.1
Tax Withholding. The Company will calculate the deductions from the amount of the benefit paid under the Plan for any taxes required to be withheld by federal, state or local government and shall cause them to be withheld. 
  
 11.2 Plan Not an Employment Contract. The adoption and maintenance of
the Plan is not a contract between the Company and its employees which gives any employee the right to be retained in its employment. Likewise, it is not intended to interfere with the rights of the Company to discharge any employee at any time or
to interfere with the employee’s right to terminate his or her employment at any time. 
  
 11.3 Alienation Prohibited. No benefits hereunder shall be subject to anticipation or assignment by a Participant, to attachment by, interference with, or control of any creditor of a Participant, or to being
taken or reached by any legal or equitable process in satisfaction of any debt or liability of a Participant prior to its actual receipt by the Participant. Any attempted conveyance, transfer, assignment, mortgage, pledge, or encumbrance of the
benefits hereunder prior to payment thereof shall be void. 
  
 11.4 Gender and Number. If the context requires it, words of one gender when used in the Plan shall include the other genders, and words used in the singular or plural shall include the other. 
  
 11.5 Severability. If any provision of the Plan is determined to be
invalid or unenforceable, that determination shall not affect the validity or enforceability of any other provision. 
  
 11.6 Successors. The Company shall not, directly or indirectly, consolidate with, merge into or sell or otherwise transfer all or substantially all
of its assets to, any person, or permit any person to consolidate with or merge into the Company, unless immediately after such consolidation, merger, sale or transfer, the Successor shall have assumed in writing the Company’s obligations under
the Plan. 
  
 11.7 Assignment; Binding Effect. This Plan
shall be binding upon any Successor. The Company shall not assign any of its obligations under the Plan unless (a) such assignment is to a Successor, and (b) the requirements of Section 11.6 are fulfilled. 
  
 11.8 Governing Law. The provisions of the Plan shall be construed,
administered, and governed under the laws of the State of Texas and, to the extent applicable, by the laws of the United States. 
  

			
	QUICKSILVER RESOURCES INC.
		
	By:	 	 /s/ Glenn Darden

	 	 	Glenn Darden
	 	 	President and Chief Executive Officer

  

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 Exhibit A 
  

QUICKSILVER RESOURCES INC. 
 EXECUTIVE 
 CHANGE IN CONTROL RETENTION INCENTIVE PLAN 
  
 RELEASE AGREEMENT 
  
 This RELEASE is executed by
                     (the “Employee”) in consideration of the severance benefits provided under the Quicksilver Resources
Inc. Executive Change in Control Retention Incentive Plan (the “Plan”), and as a condition to the receipt of such benefits. For purposes of this Release, the term “Company” means Quicksilver Resources Inc. and any Successor (as
defined in the Plan). 
  
 NOW THEREFORE, the Employee
provides the following release: 
  
 1. Release by Employee.
I,                     , on behalf of myself and my heirs and assigns, in consideration of the Company’s payment of the
severance benefits in the amount of $                     (less any amounts that the Company is required to withhold under applicable laws),
and other good and valuable consideration to be furnished to me pursuant to the Plan, the sufficiency of which is hereby acknowledged, and as a material inducement to the Company to enter into this Release hereby release and forever discharge the
Company, and its directors, officers, shareholders, partners, representatives, agents, employees, predecessors, successors, affiliates, divisions, subsidiaries and related entities and their respective directors, officers, shareholders, agents,
representatives and employees, from all claims of any nature whatsoever, from the beginning of time to the date of the execution of this Release, known or unknown, suspected or unsuspected, including but not limited to all claims arising out of,
based upon, or relating to my employment with the Company, or compensation for that employment. I understand that the consideration provided for in the Plan exceeds anything of value to which I am already entitled without the Plan. 
  
 Without limiting the generality of the foregoing, I understand and agree that
this Release includes, but is not limited to, claims based on or relating to: (a) any express or implied employment contract; (b) wrongful discharge; (c) termination in breach of public policy; (d) age discrimination under the Age Discrimination in
Employment Act of 1967, as amended; 
  

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 Exhibit A 
  

(e) claims of discrimination, harassment or retaliation under Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, or any other
law which prohibits discrimination based on race, color, age, ancestry, national origin, sex, sexual orientation, religion, mental or physical disabilities, or marital status; (f) any other federal, state or local laws or regulations prohibiting
employment discrimination; (g) personal injury, defamation, assault, battery, invasion of privacy, fraud, intentional or negligent misrepresentation of fact, intentional or negligent infliction of emotional distress, or false imprisonment; (h)
claims for additional wages, compensation, overtime pay, severance pay or bonuses; and (i) claims for attorneys’ fees or costs. I further understand that I am only waiving those claims that I have as of the date I sign this Release, and not any
claims that might arise in the future. 
  
 I
UNDERSTAND THAT THIS RELEASE COVERS BOTH CLAIMS THAT I KNOW ABOUT AND THOSE THAT I MAY NOT KNOW ABOUT. 
  
 2. Indemnification Agreement. I, for myself, my heirs, executors, administrators and assigns, release and agree to indemnify and hold harmless the
Company and all other persons and firms released above from all claims and causes of action of any nature, without limitation, which may be asserted by any person, firm, or entity claiming by, through, or under me for any relief claimed to be due me
and released by this document. 
  
 3. No Knowledge of Legal
Violations. I further assert that during my employment with the Company and activities regarding any company or organization affiliated with the Company, that I have no information or knowledge of any legal irregularity, violation, or alleged
violation of any law, regulation, statute, or ordinance of any kind resulting from the operations of the Company, or any other company or organization affiliated with the Company. I have never reported any such irregularity or violation to any
superior with respect to the Company or any company or organization affiliated with the Company. 
  

 2 

 Exhibit A 
  

4. Forty-five (45) Day Review Period. I acknowledge that I am hereby advised in writing to consult with an attorney prior to executing this
Release to discuss the contents of this document and its meaning. I understand that I have forty-five (45) days within which to consider this waiver and release of my rights. I understand the terms and conditions of this Release in full, agree to
abide by this, and knowingly and voluntarily execute it without hidden reservations. 
  
 5. Seven (7) Day Revocation Period. I understand that I will have 7 days after I sign this Release during which I can revoke my signature and cancel my acceptance of the benefits under the Plan for any reason,
and that this Release shall not become effective or enforceable until after this revocation period has expired. I understand that I may revoke or rescind this Release by providing written notice of revocation to the Company’s General Counsel,
[name, address, fax number], within the 7-day revocation period. I understand that I will not be entitled to any severance benefits under the Plan until the end of the 7-day revocation period. 
  
 6. Receipt of Disclosures. I acknowledge that I have received the
Disclosures that are attached to this Release as Exhibit 1. 
  
 7.
Governing Law. The provisions of the Plan and this Release shall be construed, administered and governed under the laws of the State of Texas and, to the extent applicable, the laws of the United States. 
  
 8. Entire Agreement. I understand that the Plan and this Release
contain the entire agreement and understanding between me and the Company regarding my employment and separation from that employment and that no other covenants or promises have been made except those contained in the Plan and this Release. The
Plan and this document supersede all other agreements and arrangements between the Company and me, whether written or oral. 
  
 9. Attorneys’ Fees. I further agree I am fully responsible for any attorneys’ fees incurred by me in consulting with an attorney and will
indemnify and hold harmless the Company, and the other persons and entities released in this document for any claims or fees 
  

 3 

 Exhibit A 
  

asserted by any attorney claiming by and through me for attorneys’ fees or costs in connection with the review or execution of this document. 
  
 EXECUTED in multiple originals this
             day of                     ,
200    . 
  

	
	 Signature of Employee

	
	

	  

	WITNESS

  

 4 

 Exhibit A 
  

NON-REVOCATION STATEMENT 
  
 I,                     , acknowledge
that at least seven (7) days have expired since the execution of the Release by me on the              day of
                    , 200    , and I knowingly and voluntarily elect not to revoke this waiver and release
of my rights under the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq. 
  
 EXECUTED in multiple originals this              day of
                    , 200    . 
  
  

	
	

	Signature of Employee

  

 5 

 Exhibit 1 
  

45-DAY WAIVER 
  
 DISCLOSURES 
  
 Covered Class of Employees, Eligibility and Time Limits. 
  

The individuals selected to participate in the Plan are those employees of
                     (Company) who have completed six months of employment with the Company and who incur Involuntary Terminations as defined
in the Quicksilver Resources, Inc. Executive Change in Control Retention Incentive Plan (the “Plan”). This program will end on the date of
                    . 
  
 Eligible Employees. 
  
 The following is a list of the job titles and ages of all employees who are eligible to participate in the Plan: 
  

			
	 Job Title

	 	 Age

		
	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

  
 Employees Not
Eligible. 
  
 The following is a list of the ages of
employees who are not eligible to participate in the Plan: 
  

			
	 Job Title

	 	 Age

		
	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

	 _______
  
	 	 _______
  

  

 6 

 Exhibit B 
  

QUICKSILVER RESOURCES INC. 
 EXECUTIVE 
 CHANGE IN CONTROL RETENTION INCENTIVE PLAN 
  
 List of Executives of Quicksilver Resources Inc. 
  

 7Amended and Restated 1999 Stock Option and Retention Stock Plan

 Exhibit 10.4 
  
 QUICKSILVER RESOURCES INC. 
 AMENDED AND RESTATED 1999 STOCK OPTION AND RETENTION STOCK PLAN 
  

  
 1. PURPOSE 
  
 This Amended and Restated 1999 Stock Option and Retention Stock Plan of Quicksilver Resources
Inc. is to promote and closely align the interests of officers and employees with those of the shareholders of Quicksilver Resources Inc. by providing stock based compensation. The Plan is intended to strengthen Quicksilver Resources Inc.’s
ability to reward performance which enhances long term shareholder value; to increase employee stock ownership through performance based compensation plans; and to strengthen the company’s ability to attract and retain an outstanding employee
and executive team. 
  

  
 2. DEFINITIONS 
  
 The following terms shall have the following meanings: 
  
 “Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Approved Leave of Absence” means a leave of absence of definite length approved by any executive officer
of the Company to whom the Committee delegates such authority. 
  
 “Award” means an award of Retention Shares pursuant to the Plan. 
  
 “Beneficiary” means any person or persons designated in writing by a Participant to the Committee on a form prescribed by it for that purpose, which designation shall be revocable at any time by the
Participant prior to his or her death, provided that, in the absence of such a designation or the failure of the person or persons so designated to survive the Participant, “Beneficiary” shall mean such Participant’s estate; and
further provided that no designation of Beneficiary shall be effective unless it is received by the Company before the Participant’s death. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, or the corresponding provisions of any
successor statute. 
  
 “Committee” means the
Committee designated by the Board to administer the Plan pursuant to Section 3. 
  
 “Common Stock” means the Common Stock of the Company. 
  
 “Company” means Quicksilver Resources Inc., a Delaware corporation, or any successor corporation. 
  
 “Executive Officer” means the Chairman of the Board,
President, Executive Vice President or Vice President of the Company. 
  
 “Grant” means a grant of an Option pursuant to the Plan. 
  
 “Option” means each non-qualified stock option, incentive stock option and stock appreciation right granted under the Plan. 
  

 “Optionee” means any employee of the Company or a Subsidiary (including directors who
are also such employees) who is granted an Option under the Plan. 
  
 “Participant” means any employee of the Company or a Subsidiary (including directors who are also such employees) who is granted an Award under the Plan. 
  
 “Plan” means this Amended and Restated 1999 Stock Option and Retention Stock Plan of Quicksilver Resources
Inc., as amended from time to time. 
  
 “Retention
Shares” means shares of Common Stock subject to an Award granted under the Plan. 
  
 “Restriction Period” means the period defined in Section 9(a). 
  
 “Subsidiary” means any corporation, partnership, or limited liability company of which the Company owns directly or indirectly at least a
majority of the outstanding shares of voting stock or other voting interest. 
  
 “Vesting Condition” means any condition to the vesting of Retention Shares established by the Committee pursuant to Section 9. 
  

  
 3. ADMINISTRATION 
  
 The Plan shall be administered by the
Committee which shall comprise not less than three persons, who shall be members of the Board, none of whom shall be employees of the Company or any Subsidiary. Any actions taken with respect to a “covered employee” within the meaning of
Code section 162(m) shall be taken by two or more “outside directors” as required by Code section 162(m). The Committee shall (i) grant Options to Optionees and make Awards of Retention Shares to Participants, and (ii) determine the terms
and conditions of such Options and Awards of Retention Shares, all in accordance with the provisions of the Plan. The Committee shall have full authority to construe and interpret the Plan, to establish, amend and rescind rules and regulations
relating to the Plan, to administer the Plan, and to take all such steps and make all such determinations in connection with the Plan and Options and Awards granted thereunder as it may deem necessary or advisable. The Committee may delegate its
authority under the Plan to one or more Executive Officers or employees of the Company or a Subsidiary, provided, however, that no delegation shall be made of authority to take an action which is required by Rule 16b-3 promulgated under the Act to
be taken by “non-employee directors” in order that the Plan and transactions thereunder meet the requirements of such Rule. Each Option and grant of Retention Shares shall be evidenced by an agreement to be executed by the Company and the
Optionee or Participant, respectively, and contain provisions not inconsistent with the Plan (including without limitation provisions relating to acceleration of vesting or other adjustments in the event of a change in control of or business
combination involving the Company). All determinations of the Committee shall be by a majority of its members and shall be evidenced by resolution, written consent or other appropriate action, and the Committee’s determinations shall be final.
Each member of the Committee, while serving as such, shall be considered to be acting in his or her capacity as a director of the Company. 
  

  
 4. ELIGIBILITY 
  
 To be eligible for selection by the Committee to participate in the Plan an individual must
be an employee of the Company or a Subsidiary. Directors, who are not full-time salaried employees, shall not be eligible. In granting Options or Awards of Retention Shares to eligible persons, the Committee shall take into account their duties,
their present and potential contributions to the success of the Company or a Subsidiary, and such other factors as the Committee shall deem relevant in connection with accomplishing the purpose of the Plan. 
  

 2 

  
 5. STOCK SUBJECT TO THE PLAN 
  
 Subject to
the provisions of Section 11 hereof, the maximum number and kind of shares as to which Options or Retention Shares may at any time be granted under the Plan are equal to the sum of (i) 1.2 million and (ii) the number of shares of Common Stock that
remain available for such grants as of the close of business on May 17, 2004. No Participant may receive Options or Awards aggregating more than 20% of the shares of Common Stock available under the Plan. Shares of Common Stock subject to Options or
Awards under the Plan may be either authorized but unissued shares, issued and held for use in employee compensation plans or shares previously issued and reacquired by the Company. Upon the expiration, termination or cancellation (in whole or in
part) of unexercised Options, shares of Common Stock subject thereto shall again be available for option or grant as Retention Shares under the Plan. Shares of Common Stock covered by an Option, or portion thereof, which is surrendered upon the
exercise of a stock appreciation right, shall thereafter be unavailable for option or grant as Retention Shares under the Plan. Upon the forfeiture (in whole or in part) of a grant of Retention Shares, the shares of Common Stock subject to such
forfeiture shall again be available for option or grant as Retention Shares under the Plan. 
  

  
 6. TERMS AND CONDITIONS OF NON-QUALIFIED OPTIONS 
  
 All non-qualified options under the Plan shall be granted subject to the following terms and
conditions: 
  
 (a) Option Price. The option price
per share with respect to each option shall be determined by the Committee but shall not be less than 100% of the fair market value of the Common Stock on the date the option is granted, such fair market value to be determined in accordance with the
procedures to be established by the Committee. 
  
 (b)
Duration of Options. Options shall be exercisable at such time or times and under such conditions as set forth in the written agreement evidencing such option but in no event shall any option be exercisable subsequent to the tenth
anniversary of the date on which the option is granted. 
  
 (c)
Payment. Shares of Common Stock purchased under options shall, at the time of purchase, be paid for in full. All, or any portion, of the option exercise price may be paid by the surrender to the Company, at the time of exercise, of
shares of previously acquired Common Stock owned by the Optionee and held for a period of six months, to the extent that such payment does not require the surrender of a fractional share of such previously acquired Common Stock. Such shares
previously acquired or shares withheld to pay the option exercise price shall be valued at fair market value on the date the option is exercised in accordance with the procedures to be established by the Committee. A holder of an option shall have
none of the rights of a stockholder until the shares of Common Stock are issued to him or her. If an amount is payable by an Optionee to the Company or a Subsidiary under applicable withholding tax laws in connection with the exercise of
non-qualified options the Optionee may make such payment, in whole or in part, by electing to authorize the Company to accept shares of Common Stock having a fair market value equal to the amount to be paid under such withholding tax laws.

  
 (d) Non-Transferability of Options. During an
Optionee’s lifetime, the option may be exercised only by the Optionee. Options shall not be transferable, except for exercise by the Optionee’s legal representatives or heirs. An officer of the Company may, with prior approval from the
Committee (or its designee) as to form, transfer an exercisable non-qualified Option to (a) a member or members of the officer’s immediate family (spouse, children and grandchildren, including step and adopted children and grandchildren), (b) a
trust, the beneficiaries of which consist exclusively of members of the officer’s immediate family, (c) a partnership, the partners of which consist exclusively of members of the officer’s immediate family, or (d) any similar entity
created for the exclusive benefit of members of the officer’s immediate family. The Committee or its designee must approve the form of any transfer of a Grant to or for the benefit of any immediate family member or members before such transfer
shall be recognized as valid hereunder. For purposes of the preceding sentence, any remote, contingent interest of persons other than a member of the officer’s immediate family shall be disregarded. For purposes of this Section 6(d), the term
“officer” shall have the same meaning as that term is defined in Rule 16a-1(f) of the Act. A person’s status as an officer shall be determined at the time of the intended transfer. 
  

 3 

 (e) Termination of Employment. Upon the termination of an Optionee’s employment, for
any reason other than death, the option shall be exercisable only as to those shares of Common Stock which were then subject to the exercise of such option, provided that in the case of retirement, at or after age 55 and with at least five (5) years
of credited Company service, or disability, as described below, the Committee may determine that particular limitations and restrictions under the Plan shall not apply, and such option shall expire according to the following schedule: 
  
 (i) Retirement. Option shall expire, unless exercised, five
(5) years after the Optionee’s retirement, at or after age 55 with at least five (5) years of credited Company service, from the Company. 
  
 (ii) Disability. Option shall expire, unless exercised, five (5) years after the date the Optionee is terminated due to the determination
by the Company that the Optionee is disabled as defined in section 22(e)(3) of the Code. 
  
 (iii) Gross Misconduct. Option shall expire upon receipt by the Optionee of the notice of termination if he or she is terminated for deliberate, willful or gross misconduct as determined by the Company.

  
 (iv) All Other Terminations. Option shall
expire, unless exercised, three (3) months after the date of such termination. 
  
 In no event, however, shall any option be exercisable pursuant to this Section 6(e) subsequent to the tenth anniversary of the date on which it is granted. 
  
 (f) Death of Optionee. Upon the death of an Optionee during his or her period of employment (or, if so
provided in any written agreement, within three months thereafter), the option shall be exercisable only as to those shares of Common Stock which were subject to the exercise of such option at the time of his or her death (or, if so provided in any
written agreement, as to all shares of Common Stock covered by such option), provided that the Committee may determine that particular limitations and restrictions under the Plan shall not apply, and such option shall expire, unless exercised by the
Optionee’s legal representatives or heirs, five (5) years after the date of death. 
  
 In no event, however, shall any option be exercisable pursuant to this Section 6(f) subsequent to the tenth anniversary of the date on which it is granted. 
  

  
 7. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 
  
 (a) General. The Committee may also grant a stock appreciation right in connection with a non-qualified option, either at the time of grant or by amendment. Such stock appreciation right shall cover the same shares covered by
such option (or such lesser number of shares of Common Stock as the Committee may determine) and shall, except for the provisions of Section 6(c) hereof, be subject to the same terms and conditions as the related non-qualified option. 
  
 (b) Exercise and Payment. Each stock appreciation right shall
entitle the Optionee to surrender to the Company unexercised the related option, or any portion thereof, and to receive from the Company in exchange therefor an amount equal to the excess of the fair market value of one share of Common Stock over
the option price per share times the number of shares covered by the option, or portion thereof, which is surrendered. Payment shall be made in shares of Common Stock valued at fair market value, or in cash, or partly in shares and partly in cash,
all as shall be determined by the Committee. The fair market value shall be the value determined in accordance with procedures established by the Committee. Stock appreciation rights may be exercised from time to time upon actual receipt by the
Company of written notice stating the number of shares of Common Stock with respect to which the stock appreciation right is being exercised, provided that if a stock appreciation right expires unexercised, it shall be deemed exercised on the
expiration date if any amount would be payable with respect thereto. No fractional shares 
  

 4 

 shall be issued but instead cash shall be paid for a fraction. If an amount is payable by an Optionee to the Company or a
Subsidiary under applicable withholding tax laws in connection with the exercise of stock appreciation rights the Optionee may make such payment, in whole or in part, by electing to authorize the Company to withhold or accept shares of Common Stock
having a fair market value equal to the amount to be paid under such withholding tax laws. 
  
 (c) Restrictions. The obligation of the Company to satisfy any stock appreciation right exercised by an Optionee subject to Section 16 of the Act shall be conditioned upon the prior receipt by the
Company of an opinion of counsel to the Company that any such satisfaction will not create an obligation on the part of such Optionee pursuant to Section 16(b) of the Act to reimburse the Company for any statutory profit which might be held to
result from such satisfaction. 
  

  
 8. TERMS AND CONDITIONS OF INCENTIVE STOCK OPTIONS 
  
 (a) General. The Committee may also grant incentive stock options as defined under section 422 of the Code. All incentive stock options
issued under the Plan shall, except for the provisions of Sections 6(d) (to the extent it allows the Committee to permit options to be transferred to, or for the benefit of, the Optionee’s immediate family members), 6(e) and (f) and Section 7
hereof, be subject to the same terms and conditions as the non-qualified options granted under the Plan. In addition, incentive stock options shall be subject to the conditions of Sections 8(b), (c) and (d). 
  
 (b) Limitation of Exercise. The aggregate fair market value
(determined as of the date the incentive stock option is granted) of the shares of stock with respect to which incentive stock options are exercisable for the first time by such Optionee during any calendar year shall not exceed $100,000. If any
incentive stock options become exercisable in any year in excess of a $100,000 limitation, options representing such excess shall become non-qualified options exercisable pursuant to the terms of Section 6 hereof and shall not be exercisable as
incentive stock options. 
  
 (c) Termination of
Employment. Upon the termination of an Optionee’s employment, for any reason other than death, his or her incentive stock option shall be exercisable only as to those shares of Common Stock which were then subject to the exercise of
such option provided that in the case of retirement, at or after age 55 and with at least five (5) years of credited Company service, or disability, as described below, the Committee may determine that particular limitations and restrictions under
the Plan shall not apply. Such option shall expire as an incentive stock option (but shall become a non-qualified option exercisable pursuant to the terms of Section 6 hereof less the period already elapsed under such Section) according to the
following schedule: 
  
 (i) Retirement. The
incentive stock option shall expire, unless exercised, three (3) months after the Optionee’s retirement, at or after age 55 with at least five (5) years of credited Company service, from the Company. 
  
 (ii) Disability. The incentive stock option shall expire,
unless exercised, one (1) year after the date the Optionee is terminated due to the determination by the Company that the Optionee is disabled as defined in section 22(e)(3) of the Code. 
  
 (iii) Gross Misconduct. The incentive stock option shall expire upon receipt by the Optionee of the notice of
termination if he or she is terminated for deliberate, willful or gross misconduct as determined by the Company. 
  
 (iv) All Other Terminations. The incentive stock option shall expire, unless exercised, three (3) months after the date of such
termination. 
  
 In no event, however, shall any incentive stock option be
exercisable pursuant to this Section 8(c) subsequent to the tenth anniversary of the date on which it was granted. 
  

 5 

 Death of Optionee. Upon the death of an Optionee during his or her period of employment
(or, if so provided in any written agreement, within three months thereafter), the incentive stock option shall be exercisable as an incentive stock option only as to those shares of Common Stock which were subject to the exercise of such option at
the time of death (or, if so provided in any written agreement, as to all shares of Common Stock covered by such option), provided that the Committee may determine that particular limitations and restrictions under the Plan shall not apply, and such
option shall expire as incentive stock options, but shall become a non-qualified option exercisable pursuant to the terms of Section 6, less the period already elapsed under such Section 6. 
  
 In no event, however, shall any incentive stock option be exercisable pursuant to this
Section 8(d) subsequent to the tenth anniversary of the date on which it was granted. 
  

  
 9. TERMS AND CONDITIONS OF AWARDS OF RETENTION STOCK 
  
 (a) General. Retention Shares may be granted to reward the
attainment of individual, Company or Subsidiary goals, or to attract or retain officers or other employees of the Company or any Subsidiary. With respect to each grant of Retention Shares under the Plan, the Committee shall determine the period or
periods, including any conditions for determining such period or periods, during which the restrictions set forth in Section 9(b) shall apply, provided that in no event, other than as provided in Section 9(c), shall such restrictions terminate prior
to one (1) year after the date of grant and further provided that the Committee may also specify any other terms or conditions to the right of the Participant to receive such Retention Shares (“Vesting Conditions”). Subject to Section 9(c)
and any such Vesting Conditions, a grant of Retention Shares shall be effective for the Restriction Period and may not be revoked. 
  
 (b) Restrictions. At the time of grant of Retention Shares to a Participant, a certificate representing the number of shares of Common Stock
granted shall be registered in the Participant’s name but shall be held by the Company for his or her account. The Participant shall have the entire beneficial ownership interest in, and all rights and privileges of a stockholder as to, such
Retention Shares, including the right to vote such Retention Shares and, unless the Committee shall determine otherwise, the right to receive dividends thereon, subject to the following: (i) subject to Section 9(c), the Participant shall not be
entitled to delivery of the stock certificate until the expiration of the Restriction Period and the satisfaction of any Vesting Conditions; (ii) none of the Retention Shares may be sold, transferred, assigned, pledged, or otherwise encumbered or
disposed of during the Restriction Period or prior to the satisfaction of any Vesting Conditions; and (iii) all of the Retention Shares shall be forfeited and all rights of the Participant to such Retention Shares shall terminate without further
obligation on the part of the Company unless the Participant remains in the continuous employment of the Company or a Subsidiary for the entire Restriction Period, except as provided by Sections 9(a) and 9(c), and any applicable Vesting Conditions
have been satisfied. Any shares of Common Stock or other securities or property received as a result of a transaction listed in Section 11 shall be subject to the same restrictions as such Retention Shares. 
  

	 	(c)	Termination of Employment. 

  
 (i) Disability and Retirement. If (A) a Participant ceases to be an employee of the Company or a Subsidiary prior to the end of a
Restriction Period, by reason of disability due to the determination by the Company that the Optionee is disabled, as defined in section 22(e)(3) of the Code, or retirement, at or after age 55 and with at least five (5) years of credited Company
service, and (B) all Vesting Conditions have been satisfied, the Retention Shares granted to such Participant shall immediately vest and all restrictions applicable to such shares shall lapse. A certificate for such shares shall be delivered to the
Participant in accordance with the provisions of Section 9(d). 
  
 (ii) Death. If (A) a Participant ceases to be an employee of the Company or a Subsidiary prior to the end of a Restriction Period by reason of death, and (B) all Vesting Conditions have been satisfied, the Retention Shares
granted to such Participant shall immediately vest in his or her Beneficiary, and all restrictions applicable to such shares shall lapse. A certificate for such shares 
  

 6 

 shall be delivered to the Participant’s Beneficiary in accordance with the provisions of Section
9(d). 
  
 (iii) All Other Terminations. If a
Participant ceases to be an employee of the Company or a Subsidiary prior to the end of a Restriction Period for any reason other than death, disability or retirement as provided in Section 9(c)(i) and (ii), the Participant shall immediately forfeit
all Retention Shares then subject to the restrictions of Section 9(b) in accordance with the provisions thereof, except that the Committee may, if it finds that the circumstances in the particular case so warrant, allow a Participant whose
employment so terminated to retain any or all of the Retention Shares then subject to the restrictions of Section 9(b) and all restrictions applicable to such retained shares shall lapse. In such latter event, a certificate for such retained shares
shall be delivered to the Participant in accordance with the provisions of Section 9(d). 
  
 (iv) Vesting Conditions. If a Participant ceases to be an employee of the Company or a Subsidiary for any reason prior to the satisfaction of any Vesting Conditions, the Participant shall immediately
forfeit all Retention Shares then subject to the restrictions of Section 9(b) in accordance with the provisions thereof, except that the Committee may, if it finds that the circumstances in the particular case so warrant, allow a Participant whose
employment has so terminated to retain any or all of the Retention Shares then subject to the restrictions of Section 9(b) and all restrictions applicable to such retained shares shall lapse. In such latter event, a certificate for such retained
shares shall be delivered to the Participant in accordance with the provisions of Section 9(d). 
  
 (d) Payment of Retention Shares. At the end of the Restriction Period and after all Vesting Conditions have been satisfied, or at such
earlier time as provided for in Section 9(c) or as the Committee, in its sole discretion, may otherwise determine, all restrictions applicable to the Retention Shares shall lapse, and a stock certificate for a number of shares of Common Stock equal
to the number of Retention Shares, free of all restrictions, shall be delivered to the Participant or his or her Beneficiary, as the case may be. If an amount is payable by a Participant to the Company or a Subsidiary under applicable withholding
tax laws in connection with the lapse of such restrictions the Participant may make such payment, in whole or in part, by authorizing the Company to transfer to the Company Retention Shares otherwise deliverable to the Participant having a fair
market value equal to the amount to be paid under such withholding tax laws. 
  

  
 10. REGULATORY APPROVALS AND LISTING 
  
 The Company shall not be required to issue to an Optionee, Participant or a Beneficiary, as
the case may be, any certificate for any shares of Common Stock upon exercise of an option or for any Retention Shares granted under the Plan prior to (i) the obtaining of any approval from any governmental agency which the Company, in its sole
discretion, shall determine to be necessary or advisable, (ii) the admission of such shares to listing on any stock exchange on which the Common Stock may then be listed, and (iii) the completion of any registration or other qualification of such
shares under any state or Federal law or rulings or regulations of any governmental body which the Company, in its sole discretion, shall determine to be necessary or advisable. 
  

  
 11. ADJUSTMENT IN EVENT OF CHANGES IN CAPITALIZATION 
  
 In the
event of a recapitalization, stock split, stock dividend, combination or exchange of shares, merger, consolidation, rights offering, separation, spin-off, reorganization or liquidation, or any other change in the corporate structure or shares of the
Company, the Board, upon recommendation of the Committee, may make such equitable adjustments as it may deem appropriate in the number and kind of shares authorized by the Plan, in the option price of outstanding Options, and in the number and kind
of shares or other securities or property subject to Options or covered by outstanding Awards. In the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for any or all outstanding Options or Awards
such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection with such substitution the 
  

 7 

 surrender of all Options or Awards so replaced. Moreover, the Committee may on or after the date of grant provide in the
award agreement under the Plan that the holder of the Option or Awards may elect to receive an equivalent award in respect of securities of the surviving entity of any merger, consolidation or other transaction or event having a similar effect, or
the Committee may provide that the holder will automatically be entitled to receive such an equivalent award. 
  
 The Company will not be required to issue any fractional share of Common Stock pursuant to the Plan. The Committee may provide for the elimination of fractions or for the settlement of fractions in cash. 

 

  
 12. TERM OF THE PLAN 
  
 No Options or Retention Shares shall be granted pursuant to the Plan after August 18, 2009 but grants of Options and Retention Shares theretofore granted may extend beyond that date and the terms and conditions of the Plan shall continue to
apply thereto. 
  

  
 13. TERMINATION OR AMENDMENT OF THE PLAN 
  
 The Board may at any time terminate the Plan with respect to any shares of Common Stock not at that time subject to outstanding Options or Awards, and may from time to
time alter or amend the Plan or any part thereof (including, but without limiting the generality of the foregoing, any amendment deemed necessary to ensure that the Company may obtain any approval referred to in Section 10 or to ensure that the
grant of Options or Awards, the exercise of Options or payment of Retention Shares or any other provision of the Plan complies with Section 16(b) of the Act), provided that no change with respect to any Options or Retention Shares theretofore
granted may be made which would impair the rights of an Optionee or Participant without the consent of such Optionee or Participant and, further, that without the approval of stockholders, no alteration or amendment may be made which would (i)
increase the maximum number of shares of Common Stock subject to the Plan as set forth in Section 5 (except by operation of Section 11), (ii) extend the term of the Plan, (iii) change the class of eligible persons who may receive Options or Awards
of Retention Shares under the Plan or (iv) increase the limitation set forth in Section 5 on the maximum number of shares that any Participant may receive under the Plan. 
  

  
 14. LEAVE OF ABSENCE 
  
 A leave of absence other than an Approved
Leave of Absence shall be deemed a termination of employment for purposes of the Plan. An Approved Leave of Absence shall not be deemed a termination of employment for purposes of the Plan (except for purposes of Section 8), but the period of such
Leave of Absence shall not be counted toward satisfaction of any Restriction Period. 
  

  
 15. GENERAL PROVISIONS 
  
 (a) Neither the Plan nor the grant of any Option or Award nor any action by
the Company, any Subsidiary or the Committee shall be held or construed to confer upon any person any right to be continued in the employ of the Company or a Subsidiary. The Company and each Subsidiary expressly reserve the right to discharge,
without liability but subject to his or her rights under the Plan, any Optionee or Participant whenever in the sole discretion of the Company or a Subsidiary, as the case may be, its interest may so require. 
  
 (b) All questions pertaining to the construction, regulation, validity and
effect of the Plan shall be determined in accordance with the laws of the State of Delaware, without regard to conflict of laws doctrine. 
  
 (c) Notwithstanding any provision herein to the contrary, the Committee, under terms and conditions as it may prescribe, may permit certain Optionees
(with respect to non-qualified options and stock appreciation rights) and certain Participants (with respect to Awards of Retention Shares) to make elections, engage in 
  

 8 

 transactions or take any other action intended to defer the receipt of compensation for federal income tax purposes with
respect to such Non-Qualified Options, Stock Appreciation Rights or Retention Shares. 
  

  
 16. EFFECTIVE DATE 
  
 The 1999 Stock Option and Retention Stock Plan was adopted by the Board effective as of
October 4, 1999 and was approved by the stockholders of the Company on June 6, 2000. The Amended and Restated 1999 Stock Option and Retention Stock Plan was approved by stockholders of the Company on May 18, 2004, and was subsequently amended and
restated by the Board effective August 24, 2004. 
  

			
	QUICKSILVER RESOURCES INC.
		
	By:	 	 /s/ Glenn Darden

	 	 	Glenn Darden
	 	 	President and Chief Executive Officer

  

 9

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