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Quicksilver Resources Severance Program Approved

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According to the U.S. Bankruptcy Court docket, the Court approved Quicksilver Resources’ motion for an order authorizing (i) the Debtors to make bonus payments to non-insider employees in an aggregate amount up to $1.45 million and (ii) continuation of the Debtors’ pre-petition severance program for non-insider and insider employees in an aggregate amount up to $3.6 million.

As previously reported, “To receive payments in accordance with the Bonus Plan, each participant must be employed by Quicksilver on the date that the following three milestones are achieved: Milestone 1: The earlier of the date that the Court enters (x) one or more Sale Order approving the sale of all or substantially all of the Company’s assets or (y) an order approving a plan support agreement or such other agreement as the Debtors determine is appropriate or necessary to document the winning bid in the Debtors’ pending sale process is 60% of Base Amount ($870,000 in the aggregate); Milestone 2: The earlier of the date that (x) all of the sales approved by the Sale Order have closed or (y) the Court enters an order approving a disclosure statement for a plan materially consistent with the Approval Order is 20% of Base Amount ($290,000 in the aggregate) and Milestone 3: The date that any chapter 11 plan of reorganization or liquidation becomes effective in the Company’s chapter 11 cases is 20% of Base Amount ($290,000 in the aggregate); provided, that the Company may, in consultation with the Debtors’ secured creditors and the Committee (together, the ‘Bonus Consultation Parties’), allocate any portion of the Milestone 3 Bonus Pool attributable to employees who are no longer employed by Quicksilver upon achievement of Milestone 3 to those employees who continue to be employed by Quicksilver upon the achievement of Milestone 3.”

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