Document:

Exhibit

Exhibit 10.78

Federated Investors, Inc.

Employee Stock Purchase Plan

Effective as of July 1, 1998
Amended through December 31, 2015

ARTICLE I - PURPOSE

1.01.    Purpose.  The Federated Investors, Inc. Employee Stock Purchase Plan (as the same may be amended from time to time, the “Plan”) is intended to provide an arrangement under which employees of Federated Investors, Inc., a Pennsylvania corporation (the “Company”), and its corporate subsidiaries which have been authorized by the Company to participate in this Plan (“Subsidiaries”) will have an opportunity to acquire a proprietary interest in the Company through the purchase of shares of the Class B Common Stock of the Company.  While it is the intention of the Company that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), it is actually an open market plan that does not confer tax benefits on participants.    The Plan shall be effective July 1, 1998.

ARTICLE II - DEFINITIONS

2.01.    “Account” shall mean a bookkeeping account to which a Participant’s payroll deductions are credited in accordance with Section 4.02.

2.02.    “Adjustment Transaction” shall have the meaning given to that term in Section 10.04.

2.03.    “Board” shall mean the Board of Directors of the Company.

2.04.    “Code” shall have the meaning given to such term in Section 1.01.

2.05.    “Committee” shall mean the committee described in Article IX.

2.06.    “Common Stock” shall mean the Class B Common Stock, no par value, of the Company.

2.07.    “Company” shall have the meaning given to such term in Section 1.01.

2.08    “Compensation” shall mean, except as set forth below, a Participant’s wages as reported in Box 1 of IRS Form W-2 plus any salary reduction contributions to a 401(k) plan, transportation benefit plan, cafeteria plan or tax deferred annuity which are not includable in the gross income of the Participant.  Compensation shall include all forms of Compensation including any lump-sum variable payments that may be paid on a periodic basis. Compensation shall not include any bonus amount, including, but not limited to, payments made under any stock incentive, executive incentive compensation or deferred bonus plans.

2.09.    “Employee” shall mean any person who is (i) employed on a full-time basis by the Company or any of its Subsidiaries or (ii) employed on a part-time basis by the Company or any of its Subsidiaries and who meets the Company’s requirements for benefits eligibility at the beginning of the Offering Period consistent with Section 423(b)(4) of the Code; provided, however, that the following employees shall be excluded from participation in the Plan:  temporary employees whose customary employment is for not more than five months in any calendar year and employees who are non-resident aliens (within the meaning of Section 7701(b)(1)(B) of the Code) and who receive no earned income (within the meaning of Section 911(d)(2) of the Code) from the Company or a Subsidiary which constitutes U.S. source income (within the meaning of Section 861(a)(3) of the Code).  

2.10.    “Fair Market Value” shall mean, as of any applicable date:  (i) if the Common Stock is listed on a national securities exchange or is authorized for quotation on The Nasdaq Stock Market’s National Market (“NNM”), the closing price, regular way, of the Common Stock on such exchange or NNM, as the case may be, or if no such reported sale of the Common Stock shall have occurred on such date, on the next preceding date on which there was such a reported sale; or (ii) 

if the Common Stock is not listed for trading on a national securities exchange or authorized for quotation on NNM, the closing bid price as reported by The Nasdaq Stock Market or The Nasdaq SmallCap Market (if applicable), or if no such prices shall have been so reported for such date, on the next preceding date for which such prices were so reported; or (iii) if the Common Stock is not listed for trading on a national securities exchange or authorized for quotation on NNM, The Nasdaq Stock Market or The Nasdaq SmallCap Market (if applicable), the last reported bid price published in the “pink sheets” or displayed on the National Association of Securities Dealers, Inc. (“NASD”) Electronic Bulletin Board, as the case may be; or (iv) if the Common Stock is not listed for trading on a national securities exchange, or is not authorized for quotation on NNM, The Nasdaq Stock Market or The Nasdaq SmallCap Market, or is not published in the “pink sheets” or displayed on the NASD Electronic Bulletin Board, the Fair Market Value of the Common Stock as determined in good faith by the Committee.

2.11.    “Five Percent Owner” shall mean an employee of the Company or any of its Subsidiaries who after the grant of an Option under this Plan, would own stock, and/or hold outstanding Options to purchase stock, possessing in the aggregate 5% or more of the total combined voting power or value of all classes of stock of the Company (for purposes of this section, the rules of §424(d) of the Code shall apply in determining stock ownership of any employee); 

2.12.    “Maximum Contribution” shall mean the maximum amount of Compensation which each Employee may deduct for the purpose of purchasing shares of Common Stock under the Plan.  The Maximum Contribution, which shall be ten percent (10%) of Compensation or such other percentage (in whole percentages) of Compensation as may from time to time be determined by the Committee on a uniform basis with respect to all Participants.

2.13    “Minimum Contribution” shall mean 1% of Compensation for any payroll period.

2.14.    “Offering Commencement Date” shall mean each January 1, April 1, July 1 and October 1 during the term of the Plan, beginning July 1, 1998.

2.15.    “Offering Period” shall mean each three-month period beginning on an Offering Commencement Date.

2.16.    “Offering Termination Date” shall mean the last business day of each Offering Period.

2.17.    “Option” shall mean an option to acquire shares of Common Stock deemed to have been granted to a Participant as described in Section 5.03.

2.18.    “Option Price” shall mean the purchase price of shares of Common Stock subject to an Option as described in Section 5.02.

2.19.    “Participant” shall mean an Employee who elects to participate in the Plan in accordance with Article III.

2.20.    “Plan” shall have the meaning given to such term in Section 1.01.

2.21    “Purchase Date” shall mean the tenth (10th) business day following the applicable Offering Termination Date, or such earlier business day on or following the Offering Termination Date as determined by the Company, as of which purchases of Common Stock shall be made with contributions accumulated during a particular Offering Period.  

ARTICLE III - ELIGIBILITY AND PARTICIPATION

3.01.    Initial Eligibility.  Any eligible Employee may participate in the Plan for each Offering Period commencing on or after such Employee’s first day of employment with the Company or any of its Subsidiaries.  

3.02.    Restrictions on Participation.  Notwithstanding any provisions of the Plan to the contrary, no Employee shall be permitted to participate in the Plan or shall be deemed to have been granted an Option under the Plan which permits his or her rights to purchase stock under all employee stock purchase plans (as described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate which exceeds $25,000 (or such other amount as may be the applicable dollar limitation under Section 423(b)(8) of the Code) in Fair Market Value of the Common Stock (determined at the time such Option is granted) for each calendar year in which such Option is outstanding, and no Five Percent Owner shall be granted an Option under the Plan.

3.03.    Commencement of Participation.  An eligible Employee may become a Participant by completing an authorization for a payroll deduction on the form provided by the Company and filing it with the Company on or before the due date established for the applicable Offering Period by the Committee or its designee.  Payroll deductions for a Participant, as elected in accordance with Article IV, shall apply to each payroll period the pay date for which occurs during the applicable Offering Period.  Such payroll deduction election shall remain in effect throughout that initial Offering Period and during each subsequent Offering Period until modified or terminated as provided in Section 4.03 and Article VII.

ARTICLE IV - PAYROLL DEDUCTIONS

4.01.    Amount of Deduction.  At the time a Participant files his or her authorization for payroll deduction, he or she shall elect to have deductions made from his or her Compensation on each payday during the time he or she is a Participant of a specified whole percentage of his or her Compensation in an amount not less than the Minimum Contribution and not in excess of the Maximum Contribution. The payroll deduction and subscription agreement shall remain in effect until superseded by a new authorization form. 

4.02.    Participant’s Account.  All payroll deductions made for a Participant shall be credited to his or her Account under the Plan.  A Participant may not make any separate cash payment into such Account.  No interest shall accrue on the amount of payroll deductions credited to a Participant’s Account under the Plan at any time. 

4.03.    Changes in Payroll Deductions.  A Participant may discontinue payroll deductions in the Plan at any time during the Offering Period, provided however that no other change with respect to payroll deductions can be made during an Offering Period.  In such event, no further payroll deductions will be made with respect to such Participant during such Offering Period or any subsequent Offering Period unless such Participant again commences participation in accordance with Section 3.03.  A Participant may elect to change or terminate his or her payroll deductions for a subsequent Offering Period by providing written notice to the Company on or before the due date established for the applicable Offering Period by the Committee or its designee. 

ARTICLE V - OFFERING PERIODS AND GRANTING OF OPTIONS

5.01.    Offering Periods.  Except as otherwise provided in this Plan or as otherwise determined by the Committee, in each calendar year during the term of the Plan there shall be four Offering Periods, beginning on each Offering Commencement Date and ending on the next following Offering Termination Date.  No Offering Period may exceed 27 months in duration.

5.02.    Option Price.  The Option Price with respect to an Offering Period shall be such price as the Committee shall determine; provided, however, that unless and until the Committee decides otherwise, the Option Price shall equal the average price per share actually paid to acquire the shares for the Plan as of the applicable Purchase Date; provided further, however, that in no event shall the Option Price be less than 85% of the lower of:
(a)    the Fair Market Value of the Common Stock on the Offering Commencement Date; or
(b)    the Fair Market Value of the Common Stock on the Offering Termination Date.
5.03.    Number of Option Shares.  Subject to Section 3.02, on the Offering Commencement Date for each Offering Period, a Participant shall be deemed to have been granted an Option to purchase the number of whole and fractional shares (determined to not more than four decimal places) of Common Stock equal to the Participant’s basic or regular rate of compensation with respect to that Offering Period, measured at the beginning of the Offering Period, divided by the closing price of the Common Stock on the first day of the Offering Period; provided, however, that if the number of shares of Common Stock remaining available for issuance under the Plan, is less than the number of shares to be purchased as of an Offering Termination Date, a pro rata allocation of the available shares shall be made consistently with Section 423 of the Code.  Any cash balance remaining in a Participant’s Account following the exercise of Options shall be returned to the Participant, except that any amount remaining which is less than the purchase price of a share (or permitted fractions thereof) shall remain in the Participant’s Account for future Offering Periods.  

ARTICLE VI - EXERCISE OF OPTION

6.01.    Automatic Exercise.  Unless a Participant gives written notice of withdrawal from the Plan to the Company as provided in Article VII prior to the Offering Termination Date of an Offering Period, the Option deemed to have been granted to such Participant under Section 5.03 hereof will be deemed to have been exercised in full automatically on the 

Purchase Date applicable to such Offering Period; provided, however, if the average price per share of the Common Stock on the Purchase Date is less than 85% of the lower of the prices set forth in Sections 5.02(a) and (b), above, the Option shall not be exercised and Participants’ balances shall be refunded as soon as practicable.

6.02.    Delivery of Common Stock.  Each Participant’s Account shall be credited with the number of whole and fractional shares (determined to not more than four decimal places) of Common Stock purchased on his or her behalf for each Offering Period.  Such Participant shall be deemed to be a shareholder with respect to such shares for all purposes and shall have all of the rights of a shareholder with respect to such shares, including, but not limited to, the right to receive dividends, if any, paid with respect to such shares, which dividends will be paid directly to Participants at the same time as paid to other shareholders.  Promptly after receiving a written request from a Participant, the Company shall deliver to such Participant stock certificate(s) representing all, but not less than all, of the shares of Common Stock purchased on behalf of such Participant under the Plan which have not been previously delivered to such Participant, subject to such Participant’s payment of any transaction costs associated with such transfer; provided, however, that the value of any fractional share shall be paid to the Participant in cash as provided in Section 8.06.

 6.03.    Other Termination of Employment.  Upon termination of the Participant’s employment for any reason , the payroll deductions credited to such Participant’s Account for the Offering Period during which such termination occurs will be returned to him or her (or his or her beneficiary or estate, as applicable) as soon as practicable following the termination of employment, without interest.  The Company shall have no liability to any person in the event shares are purchased for a deceased Participant prior to receipt by the Committee of notice of death of the Participant.

ARTICLE VII - WITHDRAWAL

7.01.    In General.  A Participant may withdraw payroll deductions credited to his or her Account during an Offering Period by giving written notice to the Company no later than ten business days prior to the Offering Termination Date of such Offering Period or by such other due date for withdrawal notices the Committee may establish.  All of the payroll deductions credited to a Participant’s Account for such Offering Period, without interest, will be paid to such Participant as soon as practicable following the receipt by the Company of the written notice. 

7.02.    Effect on Subsequent Participation.  A Participant who withdraws from the Plan shall be eligible to participate again in the Plan beginning with the first Offering Period which commences after the date of withdrawal. 

ARTICLE VIII - STOCK

8.01.    Maximum Shares.  The maximum number of shares of Common Stock which shall be issued under the Plan (subject to adjustment pursuant to Section 10.04) during the term hereof shall be 750,000 shares.  Such shares may be purchased in the open market or may be authorized but unissued shares or treasury shares, as the Committee may determine.  If an Option shall expire or terminate without being exercised in full, any shares not purchased pursuant to such Option shall again be available for granting Options hereunder.

8.02.    Participant’s Interest in Option Stock.  The Participant will have no interest in the shares of Common Stock covered by an Option deemed to have been granted hereunder until such Option has been exercised under Section 6.01.

8.03.    Registered Ownership of Common Stock.  Shares of Common Stock to be delivered to a Participant under the Plan will be registered in the name of the Participant, or, if the Participant so directs by written notice to the Company prior to the Offering Termination Date applicable thereto, in the names of the Participant and one such other person as may be designated by the Participant, as joint tenants with rights of survivorship or as tenants by the entireties, to the extent permitted by applicable law.

8.04.    Restrictions on Exercise.  The Board may, in its discretion, require as conditions to the exercise of any Option that the shares of Common Stock reserved for issuance upon the exercise of the Option shall have been duly listed, upon official notice of issuance, on a stock exchange or NNM, and that either:
(a)    a Registration Statement under the Securities Act of 1933, as amended, with respect to said shares shall be effective, or

(b)    the Participant shall have represented at the time of purchase, in form and substance satisfactory to the Company, that it is his or her intention to purchase the shares for investment and not for resale or distribution.
8.05    Restrictions on Shares.  The Committee shall have the authority to impose transfer restrictions on the shares of Common Stock purchased under the Plan and to place restrictive legends on the certificates for such restricted shares; provided, however, that if any such restrictions are to apply to shares of Common Stock purchased for an Offering Period, then prior to the due date for Participant payroll deduction elections for such Offering Period, the Committee shall notify prospective Participants of the nature of such restrictions. 
8.06.    Establishment of Account With Transfer Agent.  By enrolling in the Plan, each Participant will be deemed to have authorized the establishment of an account in his or her name with the Company’s transfer agent for the Common Stock and to have consented to the sharing by such transfer agent with the Company of information regarding the disposition of shares from said account.  With respect to any fractional shares credited to such account, upon the withdrawal of such fractional shares from the account for any reason:
(a)    the Participant will receive cash in lieu of such fractional shares,
(b)    such cash will be payable solely from proceeds of the sale of underlying whole shares held by the Plan, net of any fees and commissions incurred on such sale; and
(c)    the Company’s transfer agent shall determine the time and manner of the sale of underlying whole shares held by the Plan in accordance with its standard procedures for transacting in fractional shares.
With respect to transfer shares to a brokerage account, the Transfer Agent may: 
		
	(a)
	issue the shares directly to the Participant then the Participant would forward the certificate to broker, or 

		
	(b)
	the Participant may provide the broker name, address and Participant account number for certificate to be forwarded directly to broker.  

ARTICLE IX - ADMINISTRATION

9.01.    Appointment of Committee.  The Board shall appoint a Committee to administer the Plan, which shall consist of no fewer than two non-employee members of the Board.  No member of the Committee shall be eligible to purchase Common Stock under the Plan.  The Committee may, subject to compliance with applicable legal requirements, delegate such of its powers and authority under the Plan as it deems appropriate to designated officers or employees of the Company.  In addition, the Board may exercise any of the authority conferred upon the Committee hereunder.  In the event of any such delegation of authority or exercise of authority by the Board, references in the Plan to the Committee shall be deemed to refer to the delegate of the Committee or the Board, as the case may be.

9.02.    Authority of Committee.  Subject to the express provisions of the Plan, the Committee shall have plenary authority in its sole and absolute discretion to interpret and construe any and all provisions of the Plan, to adopt rules and regulations for administering the Plan, and to make all other determinations deemed necessary or advisable for administering the Plan.  The Committee’s determination on the foregoing matters shall be conclusive.

ARTICLE X - MISCELLANEOUS

10.01.    Designation of Beneficiary.  A Participant may file a written designation of a beneficiary for purposes of receiving amounts of cash credited to a Participant’s account, provided that any shares acquired by a Participant will be distributed to the Participant’s estate upon the death of the Participant.  Such designation of beneficiary may be changed by the Participant at any time by written notice to the Company.  In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the beneficiary shall be the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the beneficiary shall be, in the sole and absolute discretion of the Company, the spouse or any one or more dependents of the Participant.  No beneficiary shall, prior to the death of the Participant by whom he or she has been designated, acquire any interest under the Plan.

10.02.    Transferability.  Neither payroll deductions credited to a Participant’s Account nor any rights with regard to the exercise of an Option or to receive Common Stock under the Plan may be assigned, transferred, pledged, or 

otherwise disposed of in any way by the Participant other than by will or the laws of descent and distribution.  Any such attempted assignment, transfer, pledge or other disposition shall be without effect, except that the Company may, in its sole discretion, treat such act as an election to withdraw funds in accordance with Section 7.01.

10.03.    Use of Funds.  All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose and the Company shall not be obligated to segregate such payroll deductions or any Accounts.

10.04.    Equitable Adjustment.  If, while any Options are outstanding, the outstanding shares of Common Stock of the Company have increased, decreased, changed into, or been exchanged for a different number or kind of shares or securities of the Company or any other entity through reorganization, merger, recapitalization, reclassification, stock split, reverse stock split or other transaction (an “Adjustment Transaction”), appropriate and proportionate adjustments may be made by the Committee in the number and/or kind of shares which are subject to purchase under outstanding Options, and/or the Option Price applicable to such outstanding Options or the Committee, if it deems it appropriate, may convert Options into the right to receive cash or other property pursuant to the Adjustment Transaction.  In addition, in any such event, the number and/or kind of shares which may be offered for purchase under the Plan may also be proportionately adjusted if deemed appropriate by the Committee.

10.05.    Amendment and Termination.  The Company, through any of its officers, shall have complete power and authority to terminate or amend the Plan.  No termination, modification, or amendment of the Plan may, without the consent of a Participant then having an unexercised Option under the Plan, adversely affect the rights of such Participant with respect to such Option.

10.06.    Costs and Expenses.  No brokerage commissions or other transaction costs and fees shall be charged by the Company in connection with the purchase of shares under the Plan.  All other costs and expenses incurred in administering the Plan shall be borne by the Company; provided that any commissions or other transactions costs incurred in the sale of Common Stock by a Participant, the transfer of Common Stock to another brokerage account established by a Participant, or the transfer of stock certificates to a Participant shall be passed through to and paid by such Participant. The Company or its transfer agent may deduct the amount of such commissions or transactions costs from the proceeds of any sale of the Common Stock by a Participant or from amounts credited to a Participant’s Account.  Any amounts credited to Accounts shall constitute general assets of the Company and nothing in the Plan shall be construed to create a trust or fiduciary relationship with respect to such Accounts.

10.07.    No Employment Rights.  The Plan does not, directly or indirectly, create any right for the benefit of any Employee or class of Employees to purchase any shares under the Plan, or create in any Employee or class of Employees any right with respect to continuation of employment by the Company and it shall not be deemed to interfere in any way with the Company’s right to terminate, or otherwise modify, an Employee’s employment at any time.

10.08.    Governing Law.  The law of the Commonwealth of Pennsylvania, other than the conflict of laws provisions of such law, will govern all matters relating to the Plan.Exhibit

Exhibit 10.1

FIFTH FORBEARANCE AGREEMENT

This FIFTH FORBEARANCE AGREEMENT (this “Agreement”), dated as of February 16, 2016, to and under the Canadian Credit Agreement referenced below is among QUICKSILVER RESOURCES CANADA INC., (the “Canadian Borrower”), JPMORGAN CHASE BANK, N.A., as global administrative agent (in such capacity, the “Global Administrative Agent”), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian administrative agent (in such capacity, the “Canadian Administrative Agent” and, together with the Global Administrative Agent, the “Administrative Agents”), and the Combined Lenders (as defined below) party hereto.

R E C I T A L S:
A.    Quicksilver Resources Inc. (the “U.S. Borrower”), the Global Administrative Agent and the various financial institutions party thereto as lenders (the “U.S. Lenders”), agents or issuing banks entered into that certain Amended and Restated Credit Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “U.S. Credit Agreement”).
B.    The U.S. Borrower, the Canadian Borrower, the Canadian Administrative Agent, the Global Administrative Agent, and the various financial institutions party thereto as lenders (the “Canadian Lenders” and, together with the U.S. Lenders, the “Combined Lenders”), agents or issuing banks entered into that certain Amended and Restated Credit Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “Canadian Credit Agreement”).
C.     The Administrative Agents entered into that certain Intercreditor Agreement dated as of December 22, 2011 (as amended, supplemented or modified, the “Intercreditor Agreement”).
D.    Pursuant to the Canadian Credit Agreement, the Canadian Lenders have made certain loans and other extensions of credit to the Canadian Borrower.
E.     The U.S. Borrower and the Guarantors (as defined in the U.S. Credit Agreement) that are Domestic Subsidiaries (as defined in the U.S. Credit Agreement) (collectively, the “Debtors”) filed on March 17, 2015 voluntary petitions initiating their respective cases under Chapter 11 of the Bankruptcy Code (collectively, the “Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).

F.    The Bankruptcy Court entered a final order on May 1, 2015 (as amended by an order entered on December 14, 2015, the “Cash Collateral Order”) which, among other things, authorized the Debtors to use cash collateral and other collateral and granted adequate protection to the First Lien Parties and the Second Lien Parties (each as defined in the Cash Collateral Order), in each case, in accordance with and as more particularly set forth in the Cash Collateral Order.
G.    The Canadian Borrower, 0942065 B.C. Ltd. and 0942069 B.C. Ltd. (the “Non-Filer Parties”) are not Debtors in the Cases or in bankruptcy proceedings in Canada.

H.    As a result of the commencement of the Cases, (a) the obligations under the Canadian Credit Agreement were automatically accelerated and the Commitments thereunder terminated and (b) the Administrative Agents and the Canadian Lenders were entitled to exercise all of their rights and remedies under the Canadian Credit Agreement, the other Loan Documents and applicable Governmental 

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Requirements (the exercise of any such rights and remedies, collectively, “Canadian Debt Enforcement Actions”).

I.    The U.S. Borrower, the Canadian Borrower, the Guarantors (as defined in the First Forbearance Agreement), the Administrative Agents, the issuing banks party thereto and the Combined Lenders party thereto entered into that certain Waiver and Forbearance Agreement dated as of March 16, 2015 (the “First Forbearance Agreement”) pursuant to which, among other things, the Administrative Agents and the Majority Lenders agreed to forbear from taking any Canadian Debt Enforcement Actions against the Non-Filer Parties prior to the Forbearance Termination Date (as defined in the First Forbearance Agreement).
J.    The Canadian Borrower, the Administrative Agents, the issuing banks party thereto and the Combined Lenders party thereto entered into that certain Second Waiver and Forbearance Agreement dated as of June 15, 2015 (the “Second Forbearance Agreement”) pursuant to which, among other things, the Administrative Agents and the Majority Lenders agreed to forbear from taking any Canadian Debt Enforcement Actions against the Non-Filer Parties prior to the Second Forbearance Termination Date (as defined in the Second Forbearance Agreement).
K.    The Canadian Borrower, the Administrative Agents, the issuing banks party thereto and the Combined Lenders party thereto entered into that certain Third Waiver and Forbearance Agreement dated as of September 15, 2015 (the “Third Forbearance Agreement”) pursuant to which, among other things, the Administrative Agents and the Majority Lenders agreed to forbear from taking any Canadian Debt Enforcement Actions against the Non-Filer Parties prior to the Third Forbearance Termination Date (as defined in the Third Forbearance Agreement).
L.    The Canadian Borrower, the Administrative Agents, the issuing banks party thereto and the Combined Lenders party thereto entered into that certain Fourth Forbearance Agreement dated as of December 15, 2015 (the “Fourth Forbearance Agreement”) pursuant to which, among other things, the Administrative Agents and the Majority Lenders agreed to forbear from taking any Canadian Debt Enforcement Actions against the Non-Filer Parties prior to the Fourth Forbearance Termination Date (as defined in the Fourth Forbearance Agreement), which if such termination date does not occur prior to February 16, 2016, will occur on February 16, 2016.
M.    The Canadian Borrower has requested that the Administrative Agents and the Majority Lenders agree to continue to forbear from and after February 16, 2016 from taking Canadian Debt Enforcement Actions against the Non-Filer Parties. 
N.    The Administrative Agents and the Majority Lenders have agreed to such requests, subject to the terms and provisions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.    Definitions.  Each capitalized term used herein but not otherwise defined herein has the meaning given to such term in the Canadian Credit Agreement.  Unless otherwise indicated, all section references in this Agreement refer to the applicable section of the Canadian Credit Agreement.
Section 2.    Acknowledgements; Release.

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2.1    Amount of Obligations.  The Canadian Borrower acknowledges and agrees that (a) as of the close of business on February 1, 2016, the Secured Indebtedness includes, without limitation, not less than $75.6 million of Loans and not less than $1.7 million of face amount of Letters of Credit (in each case, on a United States dollar equivalent) and (b) it is truly and justly indebted to the Secured Parties and the Administrative Agents for the Secured Indebtedness without defense, counterclaim or offset of any kind, and it ratifies and reaffirms the validity, enforceability and binding nature of such Secured Indebtedness.
2.2    Event of Default.  The Canadian Borrower acknowledges and agrees that: 
(a)    (i)(A) the commencement of the Cases by the Debtors resulted in an Event of Default pursuant to Section 10.01(i) and caused the Secured Indebtedness arising under the Loan Documents to become immediately due and payable and (B) after the Effective Date, additional Events of Default may result under the Canadian Credit Agreement related to, arising out of or in connection with (1) the Cases or (2) events which customarily occur leading up to or subsequent to the filing of the Cases under Chapter 11 of the Bankruptcy Code, pursuant to Sections 10.01(d) (solely with respect to Section 9.01), 10.01(e) (as a result of a breach of Section 8.04 (Payment of Obligations)) and 10.01(l) (by virtue of the automatic stay in the Cases), (collectively under clause (B), the “Fifth Forbearance Potential Events of Default”) and (ii) the Canadian Borrower represents and warrants to the Administrative Agents and the Combined Lenders that, as of the Effective Date, neither a Default nor an Event of Default has occurred and continues to exist under the Loan Documents (other than pursuant to (A) Section 10.01(c) as a result of the making of any representation and warranty in connection with the renewal of any evergreen Letters of Credit outstanding as of the date hereof), (B) Section 10.01(e) as a result of a breach of Section 8.04 (Payment of Obligations), (C) Section 10.01(f), (D) Section 10.01(g), (E) Section 10.01(i) (as it relates to the events further described in clause 2.2(a)(i)(A)), (F) Section 10.01(j) and (G) Section 10.01(d) (solely with respect to Section 8.02 (Notices of Material Events) as it relates to any of the events described in clauses 2.2(a)(ii)(A)-(F))) (collectively under clauses 2.2(a)(ii)(A)-(G), the “Specified Existing Defaults” and, together with the Fifth Forbearance Potential Events of Default, the “Fifth Forbearance Events of Default”), 
(b)    from and after February 16, 2016, absent the agreement of the Administrative Agents and the Majority Lenders to forbear from taking Canadian Debt Enforcement Actions as provided in this Agreement, the occurrence and continuance of the Fifth Forbearance Events of Default entitle the Administrative Agents and the Majority Lenders to take Canadian Debt Enforcement Actions at any time, subject to the terms of the Loan Documents and applicable Governmental Requirements, and
(c)    from and after the automatic acceleration on March 17, 2015 of the obligations under the Canadian Credit Agreement, interest has and continues to accrue under Section 3.02(e) of the Canadian Credit Agreement and has and shall continue to be payable in accordance with Section 5.1 of the First Forbearance Agreement at the same rate as currently in effect, which, for the avoidance of doubt, shall be calculated under Section 3.02(e) based on the highest level of Applicable Margin for Canadian Prime and U.S. Prime Borrowings.
2.3    Release.  Without in any way limiting the release contained in the First Forbearance Agreement, the Second Forbearance Agreement, the Third Forbearance Agreement or the Fourth Forbearance Agreement, the Canadian Borrower, in consideration of the Administrative Agents’ and the Combined Lenders’ execution and delivery of this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, unconditionally, freely, voluntarily and, after consultation with counsel and becoming fully and adequately informed as to the relevant facts, circumstances and consequences, releases, waives and forever discharges (and further agrees not to allege, claim or pursue) 

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any and all claims, rights, causes of action, counterclaims or defenses of any kind whatsoever, in contract, in tort, in law or in equity, whether known or unknown, direct or derivative, which the Canadian Borrower or any predecessor, successor or assign might otherwise have or may have against any Administrative Agent, Combined Lender, Issuing Bank, their present or former Subsidiaries and Affiliates or any of the foregoing’s officers, directors, employees, attorneys or other representatives or agents on account of any conduct, condition, act, omission, event, contract, liability, obligation, demand, covenant, promise, indebtedness, claim, right, cause of action, suit, damage, defense, circumstance or matter of any kind whatsoever which existed, arose or occurred at any time prior to the Effective Date relating to the Loan Documents, this Agreement and/or the transactions contemplated thereby or hereby.  The foregoing release shall survive the termination of this Agreement or the Fifth Forbearance Period (as defined below).
Section 3.    Forbearance.
3.1    Applicable Forbearance Period.  Subject to the terms and conditions of this Agreement, the Administrative Agents and the Majority Lenders hereby agree to continue to forbear from taking any Canadian Debt Enforcement Action against any of the Non-Filer Parties as a result of the occurrence and continuance of any Fifth Forbearance Events of Default during the period from and including the Effective Date until the earliest to occur of (a) April 1, 2016, (b) the commencement against any Non-Filer Party of any litigation (including, without limitation, any foreclosure proceeding) in which the amounts involved, individually or in the aggregate, equal or exceed $5,000,000 that could reasonably be expected to have, during the Fifth Forbearance Period, a material adverse effect on (i) the validity or enforceability of the Loan Documents, (ii) the rights and remedies of, or benefits available to, the Canadian Administrative Agent and the Secured Parties under the Loan Documents and Governmental Requirements (including with respect to the first Lien granted pursuant to the Loan Documents to secure the Secured Indebtedness) or (iii) the business, operations, Property or financial condition of the Non-Filer Parties, taken as a whole, (c) other than pursuant to the Loan Documents, the acceleration of, or any other exercise of any rights or remedies in respect of, any Debt of any Non-Filer Party the outstanding principal amount of which exceeds, individually or in the aggregate, for such Non-Filer Party, $5,000,000; provided that a drawing under any Letter of Credit shall not constitute an acceleration or an exercise of rights or remedies, (d) any Non-Filer Party taking any action to challenge (including, without limitation, to assert in writing any challenge to) the validity or enforceability of this Agreement or any other Loan Document or any provision hereof or thereof, (e) the commencement by any Non-Filer Party of proceedings under bankruptcy, insolvency, receivership, restructuring or similar law now or hereafter in effect, including, without limitation, under the Bankruptcy and Insolvency Act (Canada), the Companies Creditors Arrangement Act (Canada), the Winding-up and Restructuring Act (Canada) or the Business Corporations Act (Alberta), (f) any failure by the Canadian Borrower to pay interest on the Loans as described in Section 2.2(c) hereof, (g) the occurrence of any Termination Event (as defined in the Cash Collateral Order), (h) any failure of the U.S. Borrower to pay interest on the U.S. Loans in accordance with the terms of the Cash Collateral Order and Section 5.2 of the First Forbearance Agreement and (i) any failure by the Debtors to comply with their cash collateral and other obligations pursuant to paragraph 15 of the January 27, 2016 Bankruptcy Court Order approving the sale of certain assets to BlueStone Natural Resources II, LLC (such earliest date, the “Fifth Forbearance Termination Date”, and the period from and including the Effective Date until the Fifth Forbearance Termination Date, the “Fifth Forbearance Period”).
3.2    Limitation on and Inapplicability of Forbearance.  Each Non-Filer Party acknowledges and agrees that, notwithstanding the agreement of the Administrative Agents and the Majority Lenders to forbear from taking Canadian Debt Enforcement Actions during the Fifth Forbearance Period, nothing contained in this Agreement shall be construed to limit or affect the right of the Administrative Agents and the Combined Lenders to bring or maintain during the Fifth Forbearance Period any action to enforce or interpret any term or provision of this Agreement, or to file or record instruments of public record (or take other action) to 

5

perfect or further protect the liens and security interests granted by the Non-Filer Parties to the Administrative Agents and the Lenders. 
3.3    Enforcement Actions After Applicable Forbearance Period.  Each Non-Filer Party acknowledges and agrees that, on the Fifth Forbearance Termination Date, the agreement of the Majority Lenders and the Administrative Agents to forbear from taking any Canadian Debt Enforcement Action shall cease and be of no further force or effect, and the Administrative Agents and the Majority Lenders shall be entitled to immediately take Canadian Debt Enforcement Actions against such Non-Filer Party, subject to the terms of the Canadian Credit Agreement, the other Loan Documents and applicable Governmental Requirements, all without further notice or demand, in respect of the Fifth Forbearance Events of Default or any other Event of Default not waived or then existing.
Section 4.    No Waiver.  Any forbearance provision contained in this Agreement shall not be a waiver by the Administrative Agents, the Combined Lenders or the Issuing Bank of any Defaults or Events of Default (including any Fifth Forbearance Event of Default) which may exist or which may occur in the future under the Canadian Credit Agreement or the other Loan Documents (collectively, “Other Violations”).  Similarly, nothing contained in this Agreement shall directly or indirectly in any way whatsoever:  (1) amend or alter any provision of the Canadian Credit Agreement, the other Loan Documents or any other contract or instrument or (2) constitute any course of dealing or other basis for altering any obligation of the Canadian Borrower or any right, privilege or remedy of the Administrative Agents, the Combined Lenders or the Issuing Bank under the Canadian Credit Agreement, the other Loan Documents or any other contract or instrument.  Without prejudice to the forbearance provisions set forth herein, nothing in this Agreement shall be construed to be a consent or waiver by the Administrative Agents, the Combined Lenders or the Issuing Bank under the Canadian Credit Agreement to any Other Violations.
Section 5.    Conditions Precedent.  This Agreement shall not become effective until the date on which each of the following conditions is satisfied (the “Effective Date”):
(a)    Execution.  The Global Administrative Agent shall have received from the Canadian Borrower, the Majority Lenders, the Global Administrative Agent and the Canadian Administrative Agent counterparts of this Agreement signed on behalf of each such Person.
(b)    Fees and Expenses.  The Administrative Agents shall have received all amounts due and payable in connection with this Agreement and any other Loan Documents on or prior to the Effective Date, including all invoiced and all documented out-of-pocket expenses required to be reimbursed or paid by the Canadian Borrower under the Canadian Credit Agreement (including the fees and expenses of legal counsel and any financial advisor).
Section 6.    Miscellaneous
6.1    Confirmation.  All of the terms and provisions of the Canadian Credit Agreement are, and shall remain, in full force and effect following the Effective Date.
6.2    Ratification and Affirmation; Representations and Warranties.  The Canadian Borrower hereby (a) acknowledges the terms of this Agreement; (b) ratifies and affirms (i) its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect and (ii) that the Liens created by the Loan Documents to which it is a party are valid, continuing and enforceable and secure the Secured Indebtedness in accordance with the terms thereof; and (c) represents and warrants to the Lenders that as of the date hereof, except with respect to Section 7.04(b) (with respect to information disclosed by 

6

the Canadian Borrower to the Agent prior to the Effective Date) and Section 7.18, the representations and warranties contained in the Loan Documents to which it is a party are true and correct in all material respects on and as of the Effective Date, except that to the extent any such representations and warranties are (x) expressly limited to an earlier date, in which case, on the Effective Date such representations and warranties shall continue to be true and correct as of such specified earlier date and (y) qualified by materiality, such representations and warranties (as so qualified) shall continue to be true and correct in all respects.  This Agreement is a Loan Document.
6.3    Counterparts.  This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart by facsimile or electronic mail shall be effective as delivery of a manually executed counterpart hereof.
6.4    Governing Law, Jurisdiction, Etc.  Sections 12.09 and 12.18 of the Canadian Credit Agreement shall be incorporated herein mutatis mutandis.
6.5    Entire Agreement.  This Agreement, the Canadian Credit Agreement and the other Loan Documents represent the entire agreement of the Canadian Borrower, the Administrative Agents, the Issuing Bank and the Combined Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agents, the Issuing Bank or any Combined Lender relative to the subject matter not expressly set forth or referred to herein or in the Canadian Credit Agreement and the other Loan Documents.

        

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first written above.

QUICKSILVER RESOURCES CANADA INC., an Alberta, Canada corporation
		
	By:
	/s/ Vanessa Gomez LaGatta                             
Title: Senior Vice President, Chief Financial

		
	 
	Officer and Treasurer

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

JPMORGAN CHASE BANK, N.A., as a Lender under the U.S. Credit Agreement and as Global Administrative Agent
		
	By:
	/s/ Patricia S. Carpen                             
Title: Executive Director

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as a Lender and Issuing Bank under the Canadian Credit Agreement and as Canadian Administrative Agent
		
	By:
	/s/ Deborah Booth                             
Title: Executive Director

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

BANK OF AMERICA, N.A., as a Lender under the U.S. Credit Agreement
By: /s/ Kathleen L. Padilla                           
       Title: Vice President

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

BANK OF AMERICA, N.A., (by its Canada Branch) as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Medina Sales de Andrade                             
Title: Vice President    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

CANADIAN IMPERIAL BANK OF COMMERCE, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ E. Lindsay Gordon                             
Title: Executive Director

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ E. Lindsay Gordon                                 
Title: Executive Director    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender under the U.S. Credit Agreement and the Canadian Credit Agreement
		
	By:
	/s/ Kathleen Sweeney                        
Title: Managing Director    

		
	By:
	/s/ Pierre-Alain Bennaim                             
Title: Managing Director    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Didier Siffer                            
Title: Authorized Signatory

		
	By:
	/s/ Laura Katherine Schembri                            
Title: Authorized Signatory    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

CREDIT SUISSE AG, TORONTO BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:  
	/s/ Adam Daoust                            
Title: Authorized Signatory    

		
	By:
	/s/ Chris Gage                           
Title: Authorized Signatory    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

GOLDMAN SACHS BANK USA, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Jerry Li                                
Title: Authorized Signatory

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

TORONTO DOMINION (NEW YORK) LLC, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Rayan Karim                             
Title:  Authorized Signatory    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

THE TORONTO-DOMINION BANK, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Rayan Karim                             
Title:  Authorized Signatory    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

        

UBS AG, STAMFORD BRANCH, as a Lender under the U.S. Credit Agreement
		
	By:
	/s/ Craig Pearson                            
Title: Associate Director    

		
	By:
	/s/ Darlene Arias                             
Title: Director

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

UBS AG CANADA BRANCH, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Craig Pearson                            
Title: Associate Director    

		
	By:
	/s/ Darlene Arias                             
Title: Director    

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

WELLS FARGO BANK, N.A., as a Lender under the U.S. Credit Agreement
By:   /s/ Trent J. Brendon                             
         Title:  Senior Vice President

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

WELLS FARGO FINANCIAL CORPORATION CANADA, as a Lender under the Canadian Credit Agreement
		
	By:
	/s/ Jeahnette Cavaliere                                
Title: VP/Director

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

KEYBANK, N.A., as a Lender under the U.S. Credit Agreement
By: /s/ Stephen J. Jones                             
       Title: Senior Vice President

SIGNATURE PAGE TO FIFTH FORBEARANCE AGREEMENT

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