ASSET PURCHASE AGREEMENT DATED AS OF MARCH 1, 2016 BETWEEN QUICKSILVER RESOURCES CANADA INC., AS SELLER, AND CPC RESOURCES ULC, AS BUYER WSLEGAL\039944\00088\13233136v1 TABLE OF CONTENTS ARTICLE I DEFINITIONS 1.1 Definitions....................................................................................................................... 1 1.2 Other Definitions and Interpretive Matters ................................................................... 19 ARTICLE II PURCHASE AND SALE 2.1 Purchase and Sale ......................................................................................................... 20 2.2 Assumed Liabilities ...................................................................................................... 20 2.3 Excluded Liabilities ...................................................................................................... 21 2.4 Licence Transfers .......................................................................................................... 22 2.5 Specific Conveyances ................................................................................................... 22 2.6 Further Assurances........................................................................................................ 24 ARTICLE III PURCHASE PRICE 3.1 Purchase Price ............................................................................................................... 25 3.2 Deposit .......................................................................................................................... 25 ARTICLE IV CLOSING 4.1 Closing Date.................................................................................................................. 26 4.2 Payment on the Closing Date ........................................................................................ 26 4.3 Buyer's Deliveries ......................................................................................................... 26 4.4 Seller's Deliveries ......................................................................................................... 27 ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLER 5.1 Organization and Good Standing .................................................................................. 28 5.2 Authority; Validity; Consents ....................................................................................... 28 5.3 No Conflict.................................................................................................................... 29 5.4 Legal Proceedings ......................................................................................................... 29 5.5 Residency ...................................................................................................................... 29 5.6 GST ............................................................................................................................... 29 5.7 Material Assigned Contracts ......................................................................................... 29 5.8 Permits .......................................................................................................................... 30 5.9 Wells; Plug and Abandon Notice .................................................................................. 30 5.10 AFEs ............................................................................................................................. 30 5.11 Non-Consent Operations ............................................................................................... 30 5.12 Hedging ......................................................................................................................... 31 5.13 Preferential Purchase Rights ......................................................................................... 31 5.14 Labor Matters ................................................................................................................ 31 5.15 Employee Benefits ........................................................................................................ 31 5.16 Compliance with Laws ................................................................................................. 32 5.17 Equipment ..................................................................................................................... 32 WSLEGAL\039944\00088\13233136v1 - ii - 5.18 Licensee Liability Rating .............................................................................................. 32 5.19 Competition Act ............................................................................................................ 32 5.20 No Additional Representations and Warranties by Seller ............................................ 32 ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER 6.1 Organization and Good Standing .................................................................................. 34 6.2 Authority; Validity; Consents ....................................................................................... 34 6.3 No Conflict.................................................................................................................... 34 6.4 Availability of Funds .................................................................................................... 34 6.5 Litigation ....................................................................................................................... 35 6.6 Brokers or Finders......................................................................................................... 35 6.7 Business Use, Bargaining Position, Representation ..................................................... 35 6.8 Qualification ................................................................................................................. 35 6.9 Competition Act ............................................................................................................ 35 ARTICLE VII ACTIONS PRIOR TO THE CLOSING DATE 7.1 Access and Reports ....................................................................................................... 35 7.2 Operations Prior to the Closing Date ............................................................................ 37 7.3 Commercially Reasonable Efforts ................................................................................ 39 7.4 Commencement of CCAA Proceedings and Court Approval ...................................... 40 7.5 CCAA Filings ............................................................................................................... 41 7.6 Updates and Amendments of Schedules ....................................................................... 41 ARTICLE VIII ADDITIONAL AGREEMENTS 8.1 Taxes ............................................................................................................................. 41 8.2 Allocation of Purchase Price ......................................................................................... 43 8.3 Payments Received ....................................................................................................... 44 8.4 Assigned Contracts and Leases ..................................................................................... 44 8.5 Employee Matters ......................................................................................................... 45 8.6 Post-Closing Deliveries, Books and Records and Personnel ........................................ 46 8.7 Casualty......................................................................................................................... 47 8.8 Successor Operator ....................................................................................................... 48 8.9 Adjustments .................................................................................................................. 49 8.10 Interim Statement of Adjustments ................................................................................ 50 8.11 Adjustment Post Closing............................................................................................... 50 ARTICLE IX PREFERENTIAL PURCHASE RIGHTS 9.1 Preferential Purchase Rights ......................................................................................... 52 9.2 Disputed Preferential Purchase Rights .......................................................................... 52 9.3 Carriage of ROFR Actions............................................................................................ 53 9.4 Resolution of ROFR Action.......................................................................................... 54 9.5 Buyer Indemnity ........................................................................................................... 54 WSLEGAL\039944\00088\13233136v1 - iii - ARTICLE X CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER TO CLOSE 10.1 Accuracy of Representations ........................................................................................ 54 10.2 Seller's Performance ..................................................................................................... 55 10.3 No Order ....................................................................................................................... 55 10.4 Seller's Deliveries ......................................................................................................... 55 10.5 Licensee Liability Rating .............................................................................................