Document:

exv10w3

Exhibit 10.3

QRE GP, LLC

LONG TERM INCENTIVE PLAN

          Section 1. Purpose of the Plan. The QR Energy Long-Term Incentive Plan (the “Plan”)
has been adopted on [______] (the “Effective Date”) by QRE GP, LLC, a Delaware limited liability
company, the general partner (“General Partner”) of QR Energy, LP, a Delaware limited partnership
(the “Partnership”). The Plan is intended to promote the interests of the General Partner, the
Partnership and their Affiliates by providing to Employees, Consultants and Directors incentive
compensation awards based on Units to encourage superior performance. The Plan is also
contemplated to enhance the ability of the General Partner, the Partnership and their Affiliates to
attract and retain the services of individuals who are essential for the growth and profitability
of the Partnership and to encourage them to devote their best efforts to advancing the business of
the Partnership.

          Section 2. Definitions. As used in the Plan, the following terms shall have the
meanings set forth below:

          (a) “409A Award” has the meaning specified in Section 6(h)(vii).

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

          (c) “Award” means an Option, Unit Appreciation Right, Restricted Unit, Phantom Unit,
Substitute Award, Unit Award or Other Unit Based Award granted under the Plan, and shall include
any tandem DERs granted with respect to an Award.

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

          (e) “Board” means the Board of Directors of the General Partner.

          (f) “Change of Control” means, and shall be deemed to have occurred upon one or more of the
following events: (i) any “person” or “group” within the meaning of those terms as used in Sections
13(d) and 14(d)(2) of the Exchange Act, other than members of the General Partner, the Partnership,
or an Affiliate of either the General Partner or the Partnership, shall become the beneficial
owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or
more of the voting power of the voting securities of the General Partner or the Partnership; (ii)
the limited partners of the General Partner or the Partnership approve, in one or a series of
transactions, a plan of complete liquidation of the General Partner or the Partnership; (iii) the
sale or other disposition by the General Partner or the Partnership of all or substantially all of
its assets in one or more transactions to any Person other than an Affiliate; or (iv) the General
Partner or an Affiliate of the General Partner or the Partnership ceases to be the general partner
of the Partnership.

          (g) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          (h) “Committee” means the Board or such committee as may be appointed by the Board to
administer the Plan.

 

 

          (i) “Consultant” means an individual who renders consulting or advisory services to the
General Partner or an Affiliate thereof.

          (j) “DER” means a distribution equivalent right, being a contingent right, granted in tandem
with a specific Award (other than a Restricted Unit or Unit Award), to receive with respect to each
Unit subject to the Award an amount in cash equal to the cash distributions made by the Partnership
with respect to a Unit during the period such Award is outstanding.

          (k) “Director” means a member of the Board or the board of an Affiliate of the General Partner
who is not an Employee or a Consultant (other than in that individual’s capacity as a Director).

          (l) “Effective Date” has the meaning set forth in Section 1.

          (m) “Employee” means an employee of the General Partner or an Affiliate of the General
Partner.

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

          (o) “Fair Market Value” means, on any relevant date, the closing sales price of a Unit on the
principal national securities exchange or other market in which trading in Units occurs on the last
market trading day prior to the applicable day (or, if there is no trading in the Units on such
date, on the next preceding day on which there was trading) as reported in The Wall Street Journal
(or other reporting service approved by the Committee). If Units are not traded on a national
securities exchange or other market at the time a determination of Fair Market Value is required to
be made hereunder, the determination of Fair Market Value shall be made by the Committee in good
faith using a “reasonable application of a reasonable valuation method” within the meaning of
Treasury Regulation Section 1.409A-l(b)(5)(iv)(B).

          (p) “General Partner” has the meaning set forth in Section 1.

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

          (r) “Other Unit Based Awards” means Awards granted to an Employee, Director or Consultant
pursuant to Section 6(e).

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

          (t) “Partnership” has the meaning set forth in Section 1.

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

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

          (w) “Plan” has the meaning set forth in Section 1.

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

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

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

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

          (bb) “Substitute Award” means an award granted pursuant to Section 6(g) of the Plan.

          (cc) “UDR” means a distribution made by the Partnership with respect to a Restricted Unit.

          (dd) “Unit” means a common unit representing a limited partnership interest of the
Partnership.

          (ee) “Unit Appreciation Right” means a contingent right granted to an Employee, Director or
Consultant pursuant to Section 6(b) that entitles the holder to receive, in cash or Units, as
determined by the Committee in its sole discretion, an amount equal to the excess of the Fair
Market Value of a Unit on the exercise date of the Unit Appreciation Right (or another specified
date) over the exercise price of the Unit Appreciation Right.

          (ff) “Unit Award” means an award granted pursuant to Section 6(d) of the Plan.

          Section 3. Administration.

          (a) Authority of the Committee. The Plan shall be administered by the Committee. A
majority of the Committee shall constitute a quorum, and the acts of the members of the Committee
who are present at any meeting thereof at which a quorum is present, or acts unanimously approved
by the members of the Committee in writing, shall be the acts of the Committee. Subject to the
following and any applicable law, the Committee, in its sole discretion, may delegate any or all of
its powers and duties under the Plan, including the power to grant Awards under the Plan, to the
Chief Executive Officer of the General Partner, subject to such limitations on such delegated
powers and duties as the Committee may impose, if any. Upon any such delegation all references in
the Plan to the “Committee”, other than in Section 7, shall be deemed to include the Chief
Executive Officer. Any such delegation shall not limit the Chief Executive Officer’s right to
receive Awards under the Plan; provided, however, the Chief Executive Officer may not grant Awards
to himself, a Director or any executive officer of the General Partner or an Affiliate, or take any
action with respect to any Award previously granted to himself, an individual who is an executive
officer or a Director. Subject to the terms of the Plan and applicable law, and in addition to
other express powers and authorizations conferred on the Committee by the Plan, the Committee shall
have full power and authority to: (i) designate Participants; (ii) determine the type or types of
Awards to be granted to a Participant; (iii) determine the number of Units to be covered by Awards;
(iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and
under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret
and administer the Plan and any instrument or agreement relating to an Award made under the Plan;
(vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it
shall deem appropriate for the proper administration of the Plan; and (viii) make any other
determination and take any other action that

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the Committee deems necessary or desirable for the administration of the Plan. The Committee
may correct any defect or supply any omission or reconcile any inconsistency in the Plan or an
Award Agreement in such manner and to such extent as the Committee deems necessary or appropriate.
Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations,
and other decisions under or with respect to the Plan or any Award shall be within the sole
discretion of the Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons, including, without limitation, the General Partner, the Partnership, any
Affiliate, any Participant, and any beneficiary of any Participant.

          (b) Limitation of Liability. The Committee and each member thereof shall be entitled
to, in good faith, rely or act upon any report or other information furnished to him or her by any
officer or employee of the General Partner, the Partnership or their Affiliates, the General
Partner’s or the Partnership’s legal counsel, independent auditors, consultants or any other agents
assisting in the administration of the Plan. Members of the Committee and any officer or employee
of the General Partner, the Partnership or any of their Affiliates acting at the direction or on
behalf of the Committee shall not be personally liable for any action or determination taken or
made in good faith with respect to this Plan, and shall, to the fullest extent permitted by law, be
indemnified and held harmless by the General Partner with respect to any such action or
determination.

          Section 4. Units.

          (a) Limits on Units Deliverable. Subject to adjustment as provided in Section 4(c),
the number of Units that may be delivered with respect to Awards under the Plan is [__________].
[On January 1 of each calendar year occurring prior to the expiration of the Plan the total number
of Units reserved and available for issuance under this Plan shall increase by [______] Units.]
Units withheld from an Award or surrendered by a Participant to satisfy the Partnership’s or an
Affiliate’s tax withholding obligations or to satisfy the payment of any exercise price with
respect to the Award (including the withholding of Units with respect to Restricted Units) shall
not be considered to be Units delivered under the Plan for this purpose. If any Award is
forfeited, cancelled, exercised, or otherwise terminates or expires without the actual delivery of
Units pursuant to such Award (the grant of Restricted Units is not a delivery of Units for this
purpose), the Units subject to such Award shall again be available for Awards under the Plan
(including Units not delivered in connection with the exercise of an Option or Unit Appreciation
Right). There shall not be any limitation on the number of Awards that may be granted and paid in
cash.

          (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate,
the Partnership or any other Person, or any combination of the foregoing, as determined by the
Committee in its discretion.

          (c) Anti-dilution Adjustments. With respect to any “equity restructuring” event that
could result in an additional compensation expense to the General Partner or the Partnership
pursuant to the provisions of FASB Accounting Standards Codification, Topic 718 if adjustments to
Awards with respect to such event were discretionary, the Committee shall equitably adjust the
number and type of Units covered by each outstanding Award and the terms and conditions, including
the exercise price and performance criteria (if any), of such Award to equitably reflect such
restructuring event and shall adjust the number and type of Units (or other securities or property)
with respect to which Awards may be granted after such event. With respect to any other similar
event that would not result in an accounting charge under FASB Accounting Standards Codification,
Topic 718 if the adjustment to Awards with

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respect to such event were subject to discretionary action, the Committee shall have complete
discretion to adjust Awards in such manner as it deems appropriate with respect to such other
event.

          Section 5. Eligibility. Any Employee, Consultant or Director shall be eligible to be
designated a Participant and receive an Award under the Plan. Notwithstanding the foregoing,
Employees, Consultants and Directors that provide services to Affiliates that are not considered a
single employer with the Partnership under Code Section 414(b) or Code Section 414(c) shall not be
eligible to receive Awards which are subject to Code Section 409A until the Affiliate adopts this
Plan as a participating employer in accordance with Section 10. Further, if the Units issuable
pursuant to an Award are intended to be registered with the SEC on Form S-8, then only Employees,
Consultants, and Directors of the Partnership or a parent or subsidiary of the Partnership (within
the meaning of General Instruction A.1(a) to Form S-8) will be eligible to receive such an Award.

          Section 6. Awards.

          (a) Options. The Committee may grant Options which are intended to comply with
Treasury Regulation Section 1.409A-l(b)(5)(i)(A) only to Employees, Consultants or Directors
performing services for the Partnership or a corporation or other type of entity in a chain of
corporations or other entities in which each corporation or other entity has a “controlling
interest” in another corporation or entity in the chain, starting with the Partnership and ending
with the corporation or other entity for which the Employee, Consultant or Director performs
services. For purposes of this Section 6(a), “controlling interest” means (i) in the case of a
corporation, ownership of stock possessing at least 50% of total combined voting power of all
classes of stock of such corporation entitled to vote or at least 50% of the total value of shares
of all classes of stock of such corporation; (ii) in the case of a partnership, ownership of at
least 50% of the profits interest or capital interest of such partnership; (iii) in the case of a
sole proprietorship, ownership of the sole proprietorship; or (iv) in the case of a trust or
estate, ownership of an actuarial interest (as defined in Treasury Regulation Section
1.414(c)-2(b)(2)(ii)) of at least 50% of such trust or estate. The Committee may grant Options
that are otherwise exempt from or compliant with Code Section 409A to any eligible Employee,
Consultant or Director. The Committee shall have the authority to determine the number of Units to
be covered by each Option, the purchase price therefor and the Restricted Period and other
conditions and limitations applicable to the exercise of the Option, including the following terms
and conditions and such additional terms and conditions, as the Committee shall determine, that are
not inconsistent with the provisions of the Plan.

          (i) Exercise Price. The exercise price per Unit purchasable under an Option
that does not provide for the deferral of compensation under Treasury Regulation Section
1.409A-1(b)(5)(i)(A) shall be determined by the Committee at the time the Option is granted
but, except with respect to Substitute Awards, may not be less than the Fair Market Value of
a Unit as of the date of grant of the Option. The exercise price per Unit purchasable under
an Option that does not provide for the deferral of compensation by reason of satisfying the
short-term deferral rule set forth in Treasury Regulation Section 1.409A-1(b)(4) or that is
compliant with Code Section 409A shall be determined by the Committee at the time the Option
is granted.

          (ii) Time and Method of Exercise. The Committee shall determine the exercise
terms and the Restricted Period with respect to an Option grant, which may include, without
limitation, a provision for accelerated vesting upon the achievement of specified
performance goals or other events, and the method or methods by which payment of the
exercise price with respect thereto may be made or deemed to have been made, which may
include, without limitation, cash, check acceptable to the General Partner, withholding
Units from an Award, a “cashless-broker” exercise through procedures approved by the General
Partner, or any

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combination of methods, having a Fair Market Value on the exercise date equal to the
relevant exercise price.

          (iii) Forfeitures. Except as otherwise provided in the terms of the Option
grant, upon termination of a Participant’s employment with the General Partner and its
Affiliates or membership on the Board, whichever is applicable, for any reason during the
applicable Restricted Period, all unvested Options shall be forfeited by the Participant.
The Committee may, in its discretion, waive in whole or in part such forfeiture with respect
to a Participant’s Options; provided that the waiver contemplated under this Section
6(a)(iii) shall be effective only to the extent that such waiver will not cause the
Participant’s Options that are designed to satisfy Code Section 409A to fail to satisfy such
section.

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

          (i) Exercise Price. The exercise price per Unit Appreciation Right shall be
determined by the Committee at the time the Unit Appreciation Right is granted and may be
more or less than the Fair Market Value of a Unit as of the date of grant of the Award.
Notwithstanding the foregoing, the exercise price per Unit that may be acquired under a Unit
Appreciation Right that does not provide for the deferral of compensation under Treasury
Regulation Section 1.409A-1(b)(5)(i)(A) shall not be less than the Fair Market Value of a
Unit as of the date of grant of the Unit Appreciation Right.

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

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

          (c) Restricted Units and Phantom Units. The Committee shall have the authority to
determine the Employees, Consultants and Directors to whom Restricted Units or Phantom Units shall
be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant,
the Restricted Period, the conditions under which the Restricted Units or Phantom Units may become
vested or forfeited and such other terms and conditions as the Committee may establish with respect
to such Awards.

          (i) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that distributions made by the Partnership with respect to
the Restricted Units shall be subject to the same forfeiture and other restrictions as the
Restricted Unit and, if restricted, such distributions shall be held, without interest,
until the Restricted Unit vests

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or is forfeited with the UDR being paid or forfeited at the same time, as the case may
be. Absent such a restriction on the UDRs in the Award Agreement, UDRs shall be paid to the
holder of the Restricted Unit without restriction at the same time as cash distributions are
paid by the Partnership to its unitholders. Notwithstanding the foregoing, UDRs shall only
be paid in a manner that is either exempt from or in compliance with Code Section 409A.

          (ii) Forfeitures. Except as otherwise provided in the terms of the Restricted
Units or Phantom Units Award Agreement, upon termination of a Participant’s employment with,
or consultant services to, the General Partner and its Affiliates or membership on the
Board, whichever is applicable, for any reason during the applicable Restricted Period, all
outstanding, unvested Restricted Units and Phantom Units awarded the Participant shall be
automatically forfeited on such termination. The Committee may, in its discretion, waive in
whole or in part such forfeiture with respect to a Participant’s Restricted Units and/or
Phantom Units; provided that the waiver contemplated under this Section 6(c)(ii) shall be
effective only to the extent that such waiver will not cause the Participant’s Restricted
Units and/or Phantom Units that are designed to satisfy Code Section 409A to fail to satisfy
such section.

          (iii) Lapse of Restrictions.

               (A) Phantom Units. Upon the vesting of each Phantom Unit, subject to the
provisions of Section 8(b), the Participant shall be entitled to receive one Unit or cash
equal to the Fair Market Value of a Unit, as determined by the Committee in its discretion.

               (B) Restricted Units. Upon the vesting of each Restricted Unit, subject to
satisfying the tax withholding obligations of Section 8(b), the Participant shall be
entitled to have the restrictions removed from his or her Unit certificate so that the
Participant then holds an unrestricted Unit.

          (d) Unit Awards. A Unit Award of Units not subject to a Restricted Period may be
granted under the Plan to any Employee, Consultant or Director as a bonus or additional
compensation or in lieu of cash compensation the individual is otherwise entitled to receive, in
such amounts as the Committee determines to be appropriate.

          (e) Other Unit Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Awards that may be denominated or payable
in, valued in whole or in part by reference to, or otherwise based on, or related to, Units, as
deemed by the Committee to be consistent with the purposes of this Plan, including, without
limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable
into Units, purchase rights for Units, Awards with value and payment contingent upon performance of
the Partnership or any other factors designated by the Committee, and Awards valued by reference to
the book value of Units or the value of securities of or the performance of specified Affiliates of
the General Partner or the Partnership. The Committee shall determine the terms and conditions of
such Awards. Units delivered pursuant to an Award in the nature of a purchase right granted under
this Section 6(e) shall be purchased for such consideration, paid for at such times, by such
methods, and in such forms, including, without limitation, cash, Units, other Awards, or other
property, as the Committee shall determine. Cash awards, as an element of or supplement to any
other Award under this Plan, may also be granted pursuant to this Section 6(e).

          (f) DERs. To the extent provided by the Committee, in its discretion, an Award (other
than a Restricted Unit or Unit Award) may include a tandem DER grant, which may provide that such
DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or
without

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interest in the discretion of the Committee) subject to the same vesting restrictions as the
tandem Award, or be subject to such other provisions or restrictions as determined by the Committee
in its discretion. Absent a contrary provision in the Award Agreement, DERs shall be paid to the
Participant without restriction at the same time as cash distributions are paid by the Partnership
to its unitholders. Notwithstanding the foregoing, DERs shall only be paid in a manner that is
either exempt from or in compliance with Code Section 409A.

          (g) Substitute Awards. Awards may be granted under the Plan in substitution for
similar awards held by individuals who become Employees, Consultants or Directors as a result of a
merger, consolidation or acquisition by the Partnership or an Affiliate of another entity or the
assets of another entity. Such Substitute Awards that are Options may have exercise prices less
than the Fair Market Value of a Unit on the date of the substitution if such substitution complies
with Code Section 409A and the Treasury Regulations thereunder.

          (h) General.

          (i) Awards May Be Granted Separately or Together. Awards may, in the
discretion of the Committee, be granted either alone or in addition to, in tandem with, or
in substitution for any other Award granted under the Plan or any award granted under any
other plan of the Partnership or any Affiliate. Awards granted in addition to or in tandem
with other Awards or awards granted under any other plan of the Partnership or any Affiliate
may be granted either at the same time as or at a different time from the grant of such
other Awards or awards.

          (ii) Limits on Transfer of Awards.

               (A) Except as provided in Section 6(h)(ii)(C) below, each Option and Unit Appreciation
Right shall be exercisable only by the Participant during the Participant’s lifetime, or by
the Person to whom the Participant’s rights shall pass by will or the laws of descent and
distribution.

               (B) Except as provided in Section 6(h)(ii)(C) below, no Award and no right under any
such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by a Participant and any such purported assignment, alienation, pledge,
attachment, sale, transfer or encumbrance shall be void and unenforceable against the
General Partner, the Partnership or any Affiliate.

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

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

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

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Committee may cause a legend or legends to be inscribed on any such certificates to
make appropriate reference to such restrictions.

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

          (vi) Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any Award Agreement to the
contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred
for any period during which, in the good faith determination of the Committee, the General
Partner is not reasonably able to obtain Units to deliver pursuant to such Award without
violating applicable law or the applicable rules or regulations of any governmental agency
or authority or securities exchange. No Units or other securities shall be delivered
pursuant to any Award until payment in full of any amount required to be paid pursuant to
the Plan or the applicable Award Agreement (including, without limitation, any exercise
price or tax withholding) is received by the General Partner.

          (vii) Change of Control. No Award that constitutes a “deferral of
compensation” within the meaning of Treasury Regulation Section 1.409A-1(b), whether by
design, due to a subsequent modification in the terms and conditions of such Award or as a
result of a change in applicable law following the date of grant of such Award, and that is
not exempt from Section 409A of the Code pursuant to an applicable exemption (any such
Award, a “409A Award”) shall become exercisable, or be settled or otherwise paid or
distributed, pursuant to the Plan or the applicable Award Agreement, as a result of a Change
of Control, unless the event constituting such Change of Control also constitutes a “change
in the ownership or effective control” or “a change in the ownership of a substantial
portion of the assets” of the General Partner or the Partnership within the meaning of
Treasury Regulation Section 1.409A-3(i)(5); except that, to the extent permitted under
Section 409A and the Treasury Regulations promulgated thereunder, the time of exercise,
payment or settlement of a 409A Award shall be accelerated, or payment shall be made under
the Plan in respect of such Award, upon the occurrence of a Change of Control, as determined
by the Committee in its discretion, to the extent necessary to pay income, withholding,
employment or other taxes imposed on such 409A Award. To the extent any 409A Award does not
become exercisable or is not settled or otherwise payable upon a Change of Control as a
result of the limitations described in the preceding sentence, it shall become exercisable
or be settled or otherwise payable upon the occurrence of an event that qualifies as a
permissible time of distribution in respect of such 409A Award under Section 409A and the
Treasury Regulations promulgated thereunder, the Plan and the terms of the governing Award
Agreement.

          (viii) Additional Agreements. Each Employee, Consultant or Director to whom an
Award is granted under this Plan may be required to agree in writing, as a condition to the
grant of such Award or otherwise, to subject an Award that is exercised or settled following
such Person’s termination of services with the General Partner, the Partnership or their
Affiliates to a general release of claims and/or a noncompetition agreement in favor of the
General Partner, the Partnership, and their Affiliates, with the terms and conditions of
such agreement(s) to be determined in good faith by the Committee.

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

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

          (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any
conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no
change, other than pursuant to Section 4(c) or 7(c), in any Award shall materially reduce the
benefit to a Participant without the consent of such Participant. Notwithstanding the foregoing,
the Board may amend the Plan or an Award to cause such Award to be exempt from Code Section 409A or
to comply with the requirements of Code Section 409A or any other applicable law.

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

          (i) provide for either (A) the termination of any Award in exchange for an amount of
cash, if any, equal to the amount that would have been attained upon the exercise of such
Award or realization of the Participant’s rights (and, for the avoidance of doubt, if as of
the date of the occurrence of such transaction or event the Committee determines in good
faith that no amount would have been attained upon the exercise of such Award or realization
of the Participant’s rights, then such Award may be terminated by the General Partner
without payment); provided, that, in the event the occurrence giving rise to the Committee’s
exercise of its powers under this Section 7(c) is a transaction pursuant to which the
Partnership or the General Partner is survived by a successor entity with a readily tradable
security, the Committee shall not have the authority to terminate and cash out any such
Award pursuant to this Section 7(c)(i)(A) but will instead but required to provide for the
assumption of such Awards by the successor or survivor entity in accordance with Section
7(c)(ii) below, or (B) the replacement of such Award with other rights or property selected
by the Committee in its sole discretion;

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

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

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

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

10

 

Notwithstanding the foregoing, (i) any such action contemplated under this Section 7 shall be
effective only to the extent that such action will not cause any Award that is designed to satisfy
Code Section 409A to fail to satisfy such section, and (ii) with respect to an above event that is
an “equity restructuring” event that would be subject to a compensation expense pursuant to FASB
Accounting Standards Codification, Topic 718, the provisions in Section 4(c) shall control to the
extent they are in conflict with the discretionary provisions of this Section 7.

          Section 8. General Provisions.

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

          (b) Tax Withholding. Unless other arrangements have been made that are acceptable to
the General Partner or an Affiliate, the Partnership or Affiliate is authorized to withhold from
any Award, from any payment due or transfer made under any Award or from any compensation or other
amount owing to a Participant the amount (in cash, Units, Units that would otherwise be issued
pursuant to such Award or other property) of any applicable taxes payable in respect of the grant
of an Award, its exercise, the lapse of restrictions thereon, or any payment or transfer under an
Award or under the Plan and to take such other action as may be necessary in the opinion of the
General Partner or Affiliate to satisfy its withholding obligations for the payment of such taxes.
Notwithstanding the foregoing, with respect to any Participant who is subject to Rule 16b-3, such
tax withholding automatically shall be effected by the General Partner “netting” or withholding
Units otherwise deliverable to the Participant on the vesting or payment of such Award.

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

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

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

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

11

 

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

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

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

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

          (k) Participation by Affiliates. In making Awards to Employees employed by an entity
other than the General Partner, the Committee shall be acting on behalf of the Affiliate, and to
the extent the Partnership has an obligation to reimburse the Affiliate for compensation paid for
services rendered for the benefit of the Partnership, such payments or reimbursement payments may
be made by the Partnership directly to the Affiliate.

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

          (m) Code Section 409A. Notwithstanding any other provision of the Plan to the
contrary, any Award subject to Code Section 409A is intended to satisfy the application of Code
Section 409A to the Award and the Plan should be construed as such.

          (n) No Guarantee of Tax Consequences. None of the Board, the Committee, the
Partnership nor the General Partner makes any commitment or guarantee that any federal, state or
local tax treatment will (or will not) apply or be available to any Participant.

          (o) Specified Employee under Code Section 409A. Subject to any other restrictions or
limitations contained herein, in the event that a “specified employee” (as defined under Code
Section 409A and the Treasury Regulations thereunder) becomes entitled to a payment under an Award
which is a 409A Award on account of a “separation from service” (as defined under Code Section 409A
and the Treasury Regulations thereunder), such payment shall not occur until the date that is six
months plus one day from the date of such separation from service. Any amount that is otherwise
payable within the six month period described herein will be aggregated and paid in a lump sum
without interest.

          Section 9. Term of the Plan. The Plan shall be effective on the date of its approval
by the Board and shall continue until the earliest of (i) the date terminated by the Board, (ii)
all Units available under the Plan have been paid to Participants, or (iii) the 10th anniversary of
the date the Plan, as amended and restated, is approved by the Board. Unless otherwise expressly
provided in the Plan or in an applicable Award Agreement, however, any Award granted prior to such
termination, and the authority

12

 

of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or
to waive any conditions or rights under such Award, shall extend beyond such termination date.

          Section 10. Adoption by Affiliates. With the consent of the Committee, any Affiliate
that is not considered a single employer with the Partnership under Code Section 414(b) or Code
Section 414(c) may adopt the Plan for the benefit of its Employees, Consultants or Directors by
written instrument delivered to the Committee before the grant to such Affiliate’s Employees,
Consultants or Directors under the Plan of any 409A Award.

13exv10w4

Exhibit 10.4

OMNIBUS AGREEMENT

BY AND AMONG

QR ENERGY, LP,

QRE GP, LLC

QRE OPERATING, LLC,

QUANTUM RESOURCES A1, LP,

QUANTUM RESOURCES B, LP,

QUANTUM RESOURCES C, LP,

QAB CARRIED WI, LP,

QAC CARRIED WI, LP,

BLACK DIAMOND RESOURCES, LLC,

QA HOLDINGS, LP AND

QA GLOBAL GP, LLC

 

 

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as of, the
Closing Date (as defined herein), and is by and among QR ENERGY, LP, a Delaware limited partnership
(the “MLP”), QRE GP, LLC, a Delaware limited liability company and the general partner of
the MLP (the “General Partner”), QRE OPERATING, LLC, a Delaware limited liability company
(“OLLC”), QUANTUM RESOURCES A1, LP, a Delaware limited partnership (“QRA”), QUANTUM
RESOURCES B, LP, a Delaware limited partnership (“QRB”), QUANTUM RESOURCES C, LP, a
Delaware limited partnership (“QRC”), QAB CARRIED WI, LP, a Delaware limited partnership
(“QAB”), QAC CARRIED WI, LP, a Delaware limited partnership (“QAC”), BLACK DIAMOND
RESOURCES, LLC, a Delaware limited liability company (“Black Diamond”) and together with
QRA, QRB, QRC, QAB and QAC (collectively, the “Fund Group,” and referred to individually as
a “Fund Entity”), QA HOLDINGS LP, a Delaware limited partnership (“Holdco”) and QA
GLOBAL GP, LLC, a Delaware limited partnership and general partner of each Fund Entity (the
“Fund General Partner”). The above-named entities are sometimes referred to in this
Agreement each as a “Party” and collectively as the “Parties.”

RECITALS:

     WHEREAS, on the Closing Date, each Fund Entity will contribute all of its rights, title and
interests in certain oil and natural gas properties and related derivative contracts to the MLP
(the “Contribution”) in exchange for limited partnership interests in the MLP, cash and
other consideration agreed to by the Parties.

     WHEREAS, in connection with the Contribution, the Parties desire by their execution of this
Agreement to evidence their understanding, as more fully set forth in this Agreement, with respect
to (1) certain business opportunities of each Fund Entity; (2) right of first offer with respect to
certain assets of any Fund Entity; and (3) specified indemnification obligations of each Fund
Entity.

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

Article I

DEFINITIONS

     1.1 Definitions. As used in this Agreement, the following terms shall have the
respective meanings set forth below:

     “Affiliate” has the meaning given such term in the MLP Agreement.

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

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

2

 

     “Change of Control” means, with respect to the MLP, any of the following events: (a)
any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the MLP’s assets to any other Person, unless
immediately following such sale, lease, exchange or other transfer such assets are owned, directly
or indirectly, by the MLP; (b) the dissolution or liquidation of the MLP; (c) the consolidation or
merger of the MLP with or into another Person pursuant to a transaction in which the outstanding
Voting Securities of the MLP are changed into or exchanged for cash, securities or other property,
other than any such transaction where (A) the outstanding Voting Securities of the MLP are changed
into or exchanged for Voting Securities of the surviving Person or its parent and (B) the holders
of the Voting Securities of the MLP immediately prior to such transaction own, directly or
indirectly, not less than a majority of the outstanding Voting Securities of the surviving Person
or its parent immediately after such transaction; or (d) a “person” or “group” (within the meaning
of Sections 13(d) or 14(d)(2) of the Exchange Act), other than any Fund Entity, Holdco, the Fund
General Partner or their respective Affiliates, being or becoming the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than fifty percent (50%) of all of
the then outstanding Voting Securities of the MLP, except in a merger or consolidation which would
not constitute a Change of Control under clause (c) above. “Change of Control” means, with respect
to the General Partner, any transaction or series of transactions that result in Toby R. Neugebauer
and S. Wil VanLoh, Jr. owning in the aggregate, directly or indirectly, less than a majority of the
outstanding Voting Securities in the General Partner, provided, however, that such
an event shall not result in a Change of Control if, upon the occurrence of such event, the Fund
Group owns at least 50% of the outstanding Voting Securities of the MLP.

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

     “Common Unit” has the meaning given such term in the MLP Agreement.

     “Conflicts Committee” has the meaning given such term in the MLP Agreement.

     “Contribution” has the meaning given such term in the Recitals.

     “Covered Environmental Losses” means Losses by reason of or arising out of:

	 	(a)	 	with respect to the MLP Assets, any violation or correction of violation of
Environmental Law, including the performance of any Environmental Activity; or
	 
	 	(b)	 	any event, omission, or condition associated with ownership or operation of the
MLP Assets (including the exposure to or presence of Hazardous Substances on, under,
about or Releasing to or from the MLP Assets or the exposure to or Release of Hazardous
Substances arising out of operation of the MLP Assets at non-MLP Asset locations)
including (i) the cost and expense of any Environmental Activities and (ii) the cost
and expense for any environmental or toxic tort pre-trial, trial or appellate legal or
litigation support work;

but only to the extent that such violation described in clause (a) or such events omissions, or
conditions described in clause (b) occurred or existed before the Closing Date.

3

 

     “Disposing Party” has the meaning given such term in Section 3.1 of this
Agreement.

     “Disposing Party Notice” has the meaning given such term in Section 3.1(a) of
this Agreement.

     “Environmental Activity” shall mean any investigation, study, assessment, evaluation,
sampling, testing, monitoring, containment, removal, disposal, closure, corrective action,
remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup or abatement that is required or
necessary under any applicable Environmental Law, including institutional or engineering controls
or participation in a governmental voluntary cleanup program to conduct voluntary investigatory and
remedial actions for the clean-up, removal or remediation of Hazardous Substances that exceed
actionable levels established pursuant to Environmental Laws, or participation in a supplemental
environmental project in partial or whole mitigation of a fine or penalty.

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

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

     “Fund Business Opportunity” means a business opportunity with respect to the
acquisition from a third party of any right, title or interest in any upstream oil and natural gas
properties and related processing and treatment plants or related equipment or assets; provided
that at least seventy percent (70%) of the allocated value (as determined in good faith by the Fund
General Partner) of the total assets, properties or business being acquired are attributable to PDP
Reserves.

     “Fund Business Opportunity Information” has the meaning given such term in Section
2.1 of this Agreement.

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

4

 

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

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

     “Fund Sale Assets” has the meaning given such term in Section 3.1 of this
Agreement.

     “Fund Subject Assets” means any right, title or interests in upstream oil and natural
gas properties and related processing and treatment plants or related equipment or assets that are
at any time after the Closing Date offered for sale by any Fund Entity to any Person if at least
seventy percent (70%) of the allocated value (as determined in good faith by the Fund General
Partner) of such interests are attributable to PDP Reserves.

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

     “Hazardous Substance” means (i) any substance that is designated, defined or
classified under any Environmental Law as a hazardous waste, solid waste, hazardous material,
pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is
otherwise regulated under any Environmental Law, including any hazardous substance as defined under
the Comprehensive Environmental Response, Compensation and Liability Act, as amended, (ii) oil as
defined in the Oil Pollution Act of 1990, as amended, including, oil, gasoline, natural gas, fuel
oil, motor oil, waste oil, diesel fuel, jet fuel and other refined petroleum hydrocarbons and
petroleum products and (iii) radioactive materials, asbestos containing materials or
polychlorinated biphenyls.

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

     “Losses” means any and all losses, damages, liabilities, claims, demands, causes of
action, judgments, settlements, fines, penalties, costs and expenses (including court costs and
reasonable attorneys’ and experts’ fees) of any and every kind or character.

     “Material Losses” has the meaning given such term in Section 4.2(b).

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

     “MLP Agreement” means the First Amended and Restated Agreement of Limited Partnership
of the MLP, dated as of the Closing Date, as such agreement is in effect on the Closing Date, to
which reference is hereby made for all purposes of this Agreement. An amendment or modification to
the MLP Agreement subsequent to the Closing Date shall be given effect for the purposes of this
Agreement; provided, however, if such amendment, in the reasonable discretion of
the General Partner (i) would have a material adverse effect on the holders of Common Units; or
(ii) materially limit or impair the rights or reduce the obligations of the Parties under this
Agreement, then such amendment shall not be given effect for purposes of this Agreement unless it
has been approved by the Conflicts Committee.

     “MLP Assets” means the oil and natural gas properties, processing and treatment plants
or related equipment or assets, or portions thereof, owned or leased by any member of the MLP Group
as of the Closing Date, with the MLP Group owning, as of the Closing Date, (i) a working

5

 

interest no greater than (unless there is a corresponding increase in net revenue interest),
and (ii) a net revenue interest no less than, the respective interests set out in the Reserve
Report with respect to each such property.

     “MLP Group” means the MLP, the General Partner and the OLLC.

     “Negotiation Period” has the meaning given such term in Section 3.1(b) of this
Agreement.

     “New Fund” has the meaning given such term in Section 2.4 of this Agreement.

     “New Fund Amendment” has the meaning given such term in Section 2.4 of this
Agreement.

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

     “Party” and “Parties” have the meanings given such terms in the introduction
to this Agreement.

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

     “PDP Reserves” means the Proved Reserves that are expected to be produced from
existing wells with existing equipment and operating methods.

     “Property Contributor Percentage” means (i) with respect to QRA, 91.464282%, (ii) with
respect to QRB, 1.64885%, (iii) with respect to QRC, 2.926868%, (iv) with respect to Black Diamond,
3.866618%, (v) with respect to QAB, 0.03365% and (vi) with respect to QAC, 0.059732%.

     “Proved Reserves” has the meaning given to the term “proved oil and gas reserves” in
Rule 4-10 of Regulation S-X promulgated under the Securities Act of 1933, as amended.

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

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

     “QEP Existing Fund” means all or any of Quantum Energy Partners, LP, Quantum Energy
Partners II, LP, Quantum Energy Partners III, LP, Quantum Parallel Partners III, LP, Quantum Energy
Partners IV, LP, Quantum Parallel Partners IV, LP, Quantum Energy Partners V, LP, Quantum Parallel
Partners V, LP, Quantum Parallel Partners V-B, LP, QPP V SWF Investors, LP, QPP Offshore Partners
V, LP, any of their respective affiliated parallel investment vehicles or alternative investment
vehicles, and any portfolio investments of any such funds.

     “QEP Fund” means any QEP Existing Fund and any QEP Future Fund.

6

 

     “QEP Future Fund” means any partnership or investment fund having investment
objectives similar to any QEP Existing Fund and/or being managed by Quantum Energy Partners, LLC or
its successor, any of their respective affiliated parallel investment vehicles or alternative
investment vehicles, and any portfolio investments of any such funds.

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

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

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

     “Registration Statement” means the Registration Statement on Form S-1, as amended (No.
333-169664), filed with the Securities and Exchange Commission with respect to the initial public
offering of Common Units.

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

     “Reserve Report” means the MLP’s estimate of its Proved Reserves as of June 30, 2010
that is based on evaluations prepared by QRM’s internal reservoir engineers and audited by Miller
and Lents, Ltd.

     “Subsidiary” has the meaning given such term in the MLP Agreement.

     “Transfer” including the correlative terms “Transferred” or
“Transferring” means any direct or indirect transfer, assignment, sale, gift, pledge,
hypothecation or other encumbrance, or any other disposition (whether voluntary, involuntary or by
operation of law) of any assets, property or rights.

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

     1.2 Construction. Unless the context requires otherwise: (a) any pronoun used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to
Articles and Sections refer to Articles and Sections of this Agreement; (c) the terms “include”,
“includes”, “including” and words of like import shall be deemed to be followed by the words
“without limitation”; and (d) the terms “hereof,” “herein” and “hereunder” refer to this Agreement
as a whole and not to any particular provision of this Agreement. The table of contents and
headings contained in this Agreement are for reference purposes only, and shall not affect in any
way the meaning or interpretation of this Agreement.

7

 

Article II

BUSINESS OPPORTUNITIES

     2.1 Fund Business Opportunities. For a period ending on the earlier of (a) the fifth
anniversary of the Closing Date and (b) a Change of Control of the MLP or the General Partner, if
any Fund Entity is presented with an opportunity to pursue, purchase or invest in any Fund Business
Opportunity, such Fund Entity shall give prompt written notice of such Fund Business Opportunity to
the General Partner on behalf of the MLP Group. Such notice shall set forth all information
available to the Fund Group, including, but not limited to, the identity of the Fund Business
Opportunity and its seller, the proposed price, all written information about the Fund Business
Opportunity provided to the Fund Group by or on behalf of the seller or marketer of same, as well
as any information or analyses compiled by the Fund Group from other sources (such information
referred to collectively herein as “Fund Business Opportunity Information”), and shall
include an offer from such Fund Entity to the MLP for the MLP to acquire or invest in up to
twenty-five percent (25%) (or such greater percentage as shall be specified in the notice solely in
the discretion of such Fund Entity) of the Fund Business Opportunity. Such Fund Entity shall
continue to provide promptly to the General Partner, on behalf of the MLP Group, any and all Fund
Business Opportunity Information subsequently received or generated. Such Fund Entity shall use
its reasonable efforts to provide for the disclosure of the Fund Business Opportunities Information
to the MLP Group under the terms and conditions of any confidentiality agreement covering such
information, and the Parties shall maintain the confidentiality of all such Fund Business
Opportunity Information, subject to compliance with applicable law. As soon as practicable, but in
all cases within thirty (30) days after receipt of such initial notification and information, the
General Partner, on behalf of the MLP Group, shall notify such Fund Entity that either (a) the
General Partner, on behalf of the MLP Group, has elected to cause a member of the MLP Group to
pursue the opportunity to acquire or invest in up to twenty-five percent (25%) (or, at the election
of the MLP, a larger interest if the notice included an offer to the MLP of an interest exceeding
twenty-five percent (25%) such greater percentage as shall be specified in the notice) of the Fund
Business Opportunity alongside the Fund Group or (b) the General Partner, on behalf of the MLP
Group, has elected not to cause a member of the MLP Group to pursue the opportunity to acquire or
invest in the Fund Business Opportunity. If the General Partner fails to notify such Fund Entity
of its decision within thirty (30) days after receipt of such initial notification and information,
the General Partner will be deemed to have, on behalf of the MLP Group, elected not to cause a
member of the MLP Group to pursue the opportunity to acquire or invest in the Fund Business
Opportunity. If the General Partner, on behalf of the MLP Group, elects not to cause a member of
the MLP Group to pursue any such opportunity or is deemed to do so pursuant to this Section
2.1, or at any time after electing to pursue such opportunity the General Partner, on behalf of
the MLP Group, abandons such opportunity (as evidenced in writing by the General Partner following
the request of such Fund Entity), the Fund Group may pursue such opportunity without the
participation of the MLP Group; provided, however, that such opportunity (x) is
consummated within 180 days after the General Partner’s receipt of the initial notification and
information, and (y) as consummated, is on terms not materially more favorable to the Fund Group
than the terms proposed in the initial notification and information. If any such opportunity is
not so consummated during such period, then no Fund Entity may consummate such opportunity without
complying again in full with the provisions of this Section 2.1.

8

 

     2.2 Scope of Prohibition. Except as provided in this Article II, the Parties
and their Affiliates shall be free to engage in any business activity whatsoever without the
participation of the other, including, without limitation, those that may be in direct competition
with the MLP Group or the Fund Group, as the case may be.

     2.3 Enforcement.

          (a) The Parties agree and acknowledge that there is no adequate remedy at law for the breach
by the Parties of the covenants and agreements set forth in this Article II, and that any
breach by the Parties of the covenants and agreements set forth in Article II would result
in irreparable injury. The Parties further agree and acknowledge that any Party to this Agreement
may, in addition to the other remedies that may be available hereunder or under applicable law,
file a suit in equity to enjoin the violating Party from such breach, and the Parties consent to
the issuance of injunctive relief hereunder.

          (b) If any court determines that any provision of this Article II is invalid or
unenforceable, the remainder of such provisions shall not thereby be affected and shall be given
full effect without regard to the invalid provision. If any court construes any provision of this
Article II, or any part thereof, to be unreasonable because of the duration of such
provision or the geographic scope thereof, such court shall have the power to reduce the duration
or restrict the geographic scope of such provision and to enforce such provision as so reduced or
restricted.

     2.4 New Funds; Application to QEP Funds. If the Fund General Partner or any of its
Affiliates shall close any new investment fund whose principal investment purpose and scope is to
acquire cash-flow producing, mature, onshore oil and natural gas properties in North America (a
“New Fund”) within two years of the Closing Date, then such New Fund shall enter into an
amendment to this Agreement (a “New Fund Amendment”) providing that the provisions of this
Agreement, but not this Section 2.4, shall apply to such New Fund to the same extent as any Fund
Entity. For purposes hereof, the close on a New Fund will occur on the date that the New Fund
closes on at least the minimum required investment from investors as specified in the offering
materials for the New Fund. For the avoidance of doubt, the provisions of this Agreement,
including this Section 2.4 shall not apply to any QEP Fund.

Article III

RIGHT OF FIRST OFFER

     3.1 Right of First Offer; Procedures. For a period ending on the earlier of (a) the
fifth anniversary of the Closing Date and (b) a Change of Control of the MLP or the General
Partner, if any Fund Entity (the “Disposing Party”) desires to sell or otherwise Transfer
any Fund Subject Assets, the Disposing Party shall provide the MLP Group a right of first offer to
acquire such Fund Subject Assets (the “Fund Sale Assets”) pursuant to the following
procedures:

          (a) The Disposing Party shall deliver a written notice (the “Disposing Party Notice”)
to the General Partner, on behalf of the MLP Group, that shall describe in reasonable detail the
Fund Sale Assets. Except as expressly provided in the Disposing Party Notice, the

9

 

Disposing Party Notice shall not constitute an offer to sell the Fund Sale Assets to the MLP
Group.

          (b) The General Partner, on behalf of the MLP Group and with the approval of the Conflicts
Committee, shall have a period of thirty days or such longer time as agreed by the Conflicts
Committee and the Disposing Party (the “Negotiation Period”) from the date of the General
Partner’s receipt of the Disposing Party Notice to provide to the Disposing Party the MLP Group’s
offer to purchase the Fund Sale Assets on terms approved by the Conflicts Committee.

          (c) If the Disposing Party and the General Partner, on behalf of the MLP Group and with the
approval of the Conflicts Committee, agree upon the terms of sale for the Fund Sale Assets prior to
the expiration of the Negotiation Period (as same may be extended with the approval of the
Disposing Party), such Parties shall enter into definitive documentation to effect such Transfer,
which shall be closed within thirty (30) days after the end of the Negotiation Period or such
longer period as may be reasonably necessary to complete a unitholder vote by the MLP (if
required), to finance the purchase of the Fund Sale Assets (if required), including by means of the
issuance of additional Common Units or debt securities, or to obtain any required governmental or
other third party consents or approvals.

          (d) If, at the end of the Negotiation Period, the Disposing Party and the General Partner, on
behalf of the MLP Group and with the approval of the Conflicts Committee, each acting in good
faith, have not agreed upon the terms of sale for the Fund Sale Assets, or if the Transfer is not
completed within the period specified in Section 3.1(c), then the Disposing Party may
thereafter Transfer the Fund Sale Assets to a third party without further restriction except that,
if the Disposing Party elects to consider bids from third parties for the Fund Sale Assets, the MLP
Group will be permitted to participate in such process.

Article IV

PAYMENT; INDEMNIFICATION

     4.1 Title, Tax and Environmental Indemnifications.

          (a) Subject to the provisions of Section 4.2 and Section 4.3, each Fund
Entity, severally, in proportion to its respective Property Contributor Percentage, agrees to
indemnify, defend and hold harmless the MLP Group from and against:

               (i) any Losses suffered or incurred by the MLP Group by reason or arising out of the failure
of the MLP Group to be the owner of valid and indefeasible title, easement rights, leasehold and/or
fee ownership interests in and to the lands on which any MLP Assets are located or which constitute
any MLP Assets, and such failure deprives the MLP Group from the economic benefits of the MLP
Assets or renders the MLP Group liable or unable to use or operate the MLP Assets in substantially
the same manner that the MLP Assets (A) were used and operated by the Fund Group (including any
Person contributed to the MLP on or prior to the Closing Date) immediately prior to the Closing
Date as described in the Registration Statement or (B) are intended to be used by the MLP Group
from and after the Closing Date as described in the Registration Statement;

10

 

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

               (iii) any Covered Environmental Losses suffered or incurred by the MLP Group.

     4.2 Limitations Regarding Indemnification.

          (a) The indemnification obligations of the Fund Group set forth in Section 4.1 shall
survive until the first anniversary of the Closing Date in the case of subsections (a)(i) and
(a)(iii), and until sixty (60) days after the expiration of any applicable statute of limitations
in the case of subsection (a)(ii); provided, however, that any such indemnification
obligation shall remain in full force and effect thereafter only with respect to any bona fide
claim made thereunder prior to any such expiration and then only for such period as may be
necessary for the resolution thereof.

          (b) No claims may be made against the Fund Group for indemnification pursuant to Section
4.1(a)(i) or Section 4.1(a)(iii) unless the aggregate dollar amount of the Material
Losses suffered or incurred by the MLP Group exceeds $4,000,000; after such time each Fund Entity
shall be liable, severally, in proportion to its respective Property Contributor Percentage, to the
extent and only to the extent that such claims exceed $4,000,000. The term “Material
Losses” means only those Losses described in Section 4.1(a)(i) or Section
4.1(a)(iii) that exceed seventy-five thousand dollars ($75,000).

     4.3 Indemnification Procedures.

          (a) Each Party seeking indemnification (each, an “Indemnified Party”) pursuant to this
Article IV agrees that within a reasonable period of time after it shall become aware of
facts giving rise to a claim for indemnification pursuant to this Article IV, it will
provide notice thereof in writing to the Parties from whom indemnification is sought pursuant to
this Article IV (each, an “Indemnifying Party”) specifying the nature of and
specific basis for such claim; provided, however, that no Indemnified Party shall
submit claims more frequently than once a calendar quarter (or twice in the case of the last
calendar quarter prior to the expiration of the applicable indemnity coverage under this
Agreement); provided further, that failure to timely provide such notice shall not affect
the right of the Indemnified Party’s indemnification hereunder, except to the extent the
Indemnifying Party is materially prejudiced by such delay or omission.

          (b) The Indemnifying Party shall have the right to control all aspects of the defense of (and
any counterclaims with respect to) any claims brought against the Indemnified

11

 

Party that are covered by the indemnification set forth in this Article IV, including,
without limitation, the selection of counsel (provided that such counsel shall be reasonably
acceptable to the Indemnified Parties), determination of whether to appeal any decision of any
court and the settling of any such matter or any issues relating thereto; provided,
however, that no such settlement shall be entered into without the consent (which consent
shall not be unreasonably withheld, conditioned or delayed) of the Indemnified Parties unless it
includes a full release of the Indemnified Parties and their respective Subsidiaries from such
matter or issues, as the case may be.

          (c) The Indemnified Parties agree to cooperate fully with the Indemnifying Parties with
respect to all aspects of the defense of any claims covered by the indemnification set forth in
Article IV, including, without limitation, the prompt furnishing to the Indemnifying
Parties of any correspondence or other notice relating thereto that the Indemnified Parties may
receive, permitting the names of the Indemnified Parties to be utilized in connection with such
defense, the making available to the Indemnifying Parties of any files, records or other
information of the Indemnified Parties that Indemnifying Parties consider relevant to such defense
and the making available to Indemnifying Parties of any employees of the Indemnified Parties;
provided, however, that in connection therewith Indemnifying Parties agree to use
reasonable efforts to minimize the impact thereof on the operations of the Indemnified Parties and
further agrees to reasonably maintain the confidentiality of all files, records and other
information furnished by the Indemnified Parties pursuant to this Section 4.3. In no event
shall the obligation of the Indemnified Parties to cooperate with Indemnifying Parties as set forth
in the immediately preceding sentence be construed as imposing upon the Indemnified Parties an
obligation to hire and pay for counsel in connection with the defense of any claims covered by the
indemnification set forth in this Article IV; provided, however, that the
Indemnified Parties may, at their option, cost and expense, hire and pay for counsel in connection
with any such defense. The Indemnifying Parties agree to keep any such counsel hired by the
Indemnified Parties reasonably informed as to the status of any such defense, but Indemnifying
Parties shall have the right to retain sole control over such defense.

          (d) In determining the amount of any Losses for which the Indemnified Parties are entitled to
indemnification under this Agreement, the gross amount of the indemnification will be reduced by
(i) any insurance proceeds realized by the Indemnified Parties, and such correlative insurance
benefit shall be net of any incremental insurance premium that becomes due and payable by the
Indemnified Parties as a result of such claim and (ii) all amounts recovered by the Indemnified
Parties under contractual indemnities from third parties. The Indemnified Parties hereby agree to
use commercially reasonable efforts to realize any applicable insurance proceeds or amounts
recoverable under such contractual indemnities; provided, however, that the costs
and expenses (including, without limitation, court costs and reasonable attorneys’ fees) of the
Indemnified Parties in connection with such efforts shall be promptly reimbursed by the
Indemnifying Parties. To the extent that Indemnifying Parties have made any indemnification payment
hereunder in respect of a claim for which the Indemnified Parties have asserted a related claim for
insurance proceeds or under a contractual indemnity, Indemnifying Parties shall be subrogated to
the rights of the Indemnified Parties to receive the proceeds of such insurance or contractual
indemnity.

12

 

Article V

MISCELLANEOUS

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

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

	 	 	 	 	 

	 

	 	To the Fund Group:
	 	QA Global GP, LLC
	 

	 	 	 	Attn: Legal Department
	 

	 	 	 	1401 McKinney Street, Suite 2400
	 

	 	 	 	Houston, Texas 77010
	 

	 	 	 	Phone: (713) 452-2230
	 

	 	 	 	Fax: (713) 452-2231
	 
	 	 	 	 
	 

	 	To the MLP Group:
	 	QRE GP, LLC
	 

	 	 	 	Attn: Legal Department
	 

	 	 	 	1401 McKinney Street, Suite 2400
	 

	 	 	 	Houston, Texas 77010
	 

	 	 	 	Phone: (713) 452-2230
	 

	 	 	 	Fax: (713) 452-2231

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

     5.4 Jointly Drafted. This Agreement, and all the provisions of this Agreement, shall
be deemed drafted by all of the Parties, and shall not be construed against any Party on the basis
of that Party’s role in drafting this Agreement.

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

13

 

a waiver by such Party of its rights hereunder until the applicable statute of limitations
period has run.

     5.6 Amendment or Modification. This Agreement may be amended or modified only (a)
pursuant to Section 2.4 or (b) from time to time by the written agreement of the Parties;
provided, however, that the MLP may not, without the prior approval of the
Conflicts Committee, agree to any amendment or modification of this Agreement that, in the
reasonable discretion of the General Partner (i) would have a material adverse effect on the
holders of Common Units or (ii) materially limit or impair the rights or reduce the obligations of
the Parties under this Agreement. Each such instrument shall be reduced to writing and shall be
designated on its face an “Amendment” or an “Addendum” to this Agreement.

     5.7 Assignment; No Third-Party Beneficiaries. None of the Parties shall have the right
to assign its rights or obligations under this Agreement without the prior written consent of all
other Parties. The provisions of this Agreement are enforceable solely by the Parties (including
any permitted assignee), but no limited partner or member of any Fund Entity, Holdco, the Fund
General Partner or the MLP or other Person shall have the right, separate and apart from the
Parties hereto, to enforce any provision of this Agreement or to compel any Party to comply with
the terms of this Agreement.

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

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

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

[Signatures on the following page]

14

 

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

	 	 	 	 	 	 	 

	 	 	QR ENERGY, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QRE GP, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QRE GP, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QRE OPERATING, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QR Energy, LP, its sole member	 	 
	 

	 	By:
	 	QRE GP, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QUANTUM RESOURCES A1, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	The Quantum Aspect Partnership, LP,	 	 
	 

	 	 	 	its general partner	 	 
	 

	 	By:
	 	QA GP, LLC, its general partner	 	 
	 

	 	By:
	 	QA Holdings, LP, its general partner	 	 
	 

	 	By:
	 	QA Global GP, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

[Signature Page to Omnibus Agreement]

 

 

	 	 	 	 	 	 	 

	 	 	QUANTUM RESOURCES B, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	The Quantum Aspect Partnership, LP,	 	 
	 

	 	 	 	its general partner	 	 
	 

	 	By:
	 	QA GP, LLC, its general partner	 	 
	 

	 	By:
	 	QA Holdings, LP, its general partner	 	 
	 

	 	By:
	 	QA Global GP, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QUANTUM RESOURCES C, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	The Quantum Aspect Partnership, LP,	 	 
	 

	 	 	 	its general partner	 	 
	 

	 	By:
	 	QA GP, LLC, its general partner	 	 
	 

	 	By:
	 	QA Holdings, LP, its sole member	 	 
	 

	 	By:
	 	QA Global GP, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QAB CARRIED WI, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Black Diamond GP, LLC, its general partner	 	 
	 

	 	By:
	 	Black Diamond Resources 2, LLC, its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QAC CARRIED WI, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Black Diamond GP, LLC, its general partner	 	 
	 

	 	By:
	 	Black Diamond Resources 2, LLC, its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

[Signature Page to Omnibus Agreement]

 

 

	 	 	 	 	 	 	 

	 	 	BLACK DIAMOND RESOURCES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QA HOLDINGS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	QA Global GP, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QA GLOBAL GP, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

[Signature Page to Omnibus Agreement]

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