  We show that several features reminiscent of short-hard Gamma-ray Bursts
(GRBs) arise naturally when Quark-Novae occur in low-mass X-ray binaries born
with massive neutron stars (> 1.6M_sun) and harboring a circumbinary disk. Near
the end of the first accretion phase, conditions are just right for the
explosive conversion of the neutron star to a quark star (Quark-Nova). In our
model, the subsequent interaction of material from the neutron star's ejected
crust with the circumbinary disk explains the duration, variability and
near-universal nature of the prompt emission in short-hard GRBs. We also
describe a statistical approach to ejecta break-up and collision to obtain the
photon spectrum in our model, which turns out remarkably similar to the
empirical Band function (Band 1993). We apply the model to the fluence and
spectrum of GRB 000727, GRB 000218, and GRB980706A obtaining excellent fits.
Extended emission (spectrum and duration) is explained by shock-heating and
ablation of the white dwarf by the highly energetic ejecta. Depending on the
orbital separation when the Quark-Nova occurs, we isolate interesting regimes
within our model when both prompt and extended emission can occur. We find that
the spectrum can carry signatures typical of Type Ib/c SNe although these
should appear less luminous than normal type Ib/c SNe. Late X-ray activity is
due to accretion onto the quark star as well as its spin-down luminosity.
Afterglow activity arise from the expanding shell of material from the
shock-heated expanding circumbinary disk. We find a correlation between the
duration and spectrum of short-hard GRBs as well as modest hard-to-soft time
evolution of the peak energy.
