Document:

EX-10.7

 Exhibit 10.7 

TRANSITION SERVICES AND SEPARATION AGREEMENT 

THIS TRANSITION SERVICES AND SEPARATION AGREEMENT (this “Agreement”), dated February 28, 2017, is made by and between
Linn Operating, Inc., a Delaware corporation (“LOI”), Linn Midstream, LLC, a Delaware limited liability company (“LM”), Linn Energy, LLC, a Delaware limited liability company (“Linn Energy”),
LinnCo, LLC, a Delaware limited liability company (“LC”), Linn Energy Finance Corp., a Delaware corporation (“LEF”), Linn Energy Holdings, LLC, a Delaware limited liability company (“LEH”), Linn
Exploration & Production Michigan LLC, a Delaware limited liability company (“LE&PM”), Linn Exploration Midcontinent, LLC, a Delaware limited liability company (“LEM”), Linn Midwest Energy LLC, a
Delaware limited liability company (“LME”), Mid-Continent I, LLC, a Delaware limited liability company (“MC-I”), Mid-Continent II, LLC, a Delaware limited liability company (“MC-II”), Mid-Continent Holdings I, LLC, a Delaware
limited liability company (“MCH-I”), Mid-Continent Holdings II, LLC, a Delaware limited liability company
(“MCH-II”) (LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II,
MCH-I and MCH-II are referred to in this Agreement collectively as “LINN”; provided, however, that with respect to particular uses of the
term in this Agreement, “LINN” shall mean each, any or all of LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II as applicable to the context of such use), and Berry Petroleum Company, LLC, a Delaware limited liability company (“Berry”). Each of LINN and
Berry is referred to in this Agreement individually as a “Party,” and LINN and Berry are referred to in this Agreement collectively as the “Parties.” Capitalized terms used in this Agreement shall have the
respective meanings set forth in Exhibit A. 
 Recitals 

WHEREAS, Berry is engaged in the business of onshore oil and natural gas exploration, development, and production in the United States and
owns various oil and gas properties and associated assets; 
 WHEREAS, on December 16, 2013, Berry completed the transactions
contemplated by the merger agreement between Linn Energy, LC, and Berry pursuant to which LC acquired all of the outstanding common shares of Berry and Berry became an indirect wholly owned subsidiary of Linn Energy; 

WHEREAS, all employees of Berry that were retained after completion of such transactions became employees of LOI and, along with other LINN
personnel, have provided administrative, management, operating, and other services and support to Berry in accordance with an agency agreement and power of attorney; 

WHEREAS, in connection with the provision of such services and support, various assets, contracts, permits, records, funds, and other rights
and interests attributable or relating to Berry’s business were acquired or have been held by or in the name of LOI, and various gathering, processing, sales and similar midstream and marketing contracts related to Hydrocarbons owned by Berry
have been entered into by LOI or LM; 

 WHEREAS, on May 11, 2016, Linn Energy and its subsidiaries (including Berry) filed voluntary
petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas; 

WHEREAS, on July 11, 2016, Berry filed a Statement of Assets and Liabilities and Schedule of Financial Affairs reflecting all of the real
and personal property and other assets and interests owned by Berry as of May 11, 2016 (the “Berry Statement of Assets and Liabilities”); 

WHEREAS, an Amended Joint Chapter 11 Plan of Reorganization of Linn Acquisition Company, LLC and Berry Petroleum Company, LLC (as amended,
supplemented, or otherwise modified, the “Berry Consensual Plan”) was filed on December 21, 2016, and an Amended Joint Chapter 11 Plan of Reorganization of Linn Energy, LLC and its Debtor Affiliates Other Than Linn Acquisition
Company, LLC and Berry Petroleum Company, LLC (as amended, supplemented, or otherwise modified, the “LINN Consensual Plan”) was filed on December 21, 2016; and 

WHEREAS, the Parties are entering into this Agreement in accordance with the Berry Consensual Plan and the LINN Consensual Plan in order to
set forth the terms and conditions pursuant to which (i) LINN will continue to provide, or cause to be provided, administrative, management, operating, and other services and support to Berry during a transitional period following the Effective
Date and (ii) LINN and Berry will separate their previously combined enterprise and transfer all Berry Related Assets (and any other Berry Assets held in the name of LINN) to Berry under the terms and conditions specified herein. 

NOW, THEREFORE, in consideration of the premises set forth in the recitals above and the covenants set forth herein and the benefits to be
derived hereunder, the Parties agree as follows. 
 Agreement 

 

	1.	 Transition Services. LINN shall provide, or cause to be provided, to Berry the services described in this
Article 1 and Exhibit B (collectively, the “Services”) during the Transition Period, and, with respect to the portion of the Services described in Sections 1.8, 1.11, 1.13,
1.14, 1.16 and 1.17 during the Accounting Period. Subject to Section 2.1, the Services shall be substantially the same as, and at the same level and manner as, those that have been provided with respect
to the Berry Assets during the three month period immediately preceding the Effective Date (the “Reference Period”), and in addition shall include the provision of certain historical operating and financial data as provided herein.
For the avoidance of doubt, LINN shall have the right to perform particular portions of the Services through (i) one or more of the LINN entities or (ii) to the extent previously performed by one or more Third Parties, such Third Party or
Third Parties (or any other Third Parties determined by LINN to be reasonably equivalent; provided, however, that, if such other Third Parties are to perform material Third Party activities (such as drilling contractors), then such
other Third Parties must be approved by Berry in advance for such portion of the Services); provided, however, that no such performance by a LINN entity or a Third Party of a portion of the Services shall

  
 2 

	 	
relieve LINN collectively from any liability under this Agreement with respect to such portion of the Services; provided, further, that if Berry does not approve a Third
Party’s provision of Services and such failure causes LINN to be unable to provide the Services on a commercially reasonable basis, LINN will be excused from performing such Services or portion thereof without penalty until an acceptable
provider is approved by Berry. 

  

	 	1.1	Operator Services. LINN shall continue to be the operator of record for the Operated Berry Properties during the Transition Period of this Agreement. During the Transition Period, LINN shall (i) continue to
perform, on Berry’s behalf, Berry’s duties as operator of the Operated Berry Properties and (ii) provide such additional operations services with respect to the Operated Berry Properties that are described in Section 1.1 of
Exhibit B. For the avoidance of doubt, LINN’s obligations under this Agreement relative to accounting and disbursement of production are limited to the production of Hydrocarbons prior to the end of the Transition Period, as further
described in Sections 1.1, 1.6, and 1.11 of Exhibit B. 

  

	 	1.2	Non-Operator Services. During the Transition Period, LINN shall perform the administrative and management services with respect to the
Non-Operated Berry Properties that are described in Section 1.2 of Exhibit B. LINN shall promptly provide Berry with customary details, and obtain prior written consent from Berry, for any
authorizations for expenditure (“AFE”) or other proposals submitted to LINN from any Third Party operator of the Non-Operated Berry Properties (in each case, to the extent any of the foregoing
are provided by such Third Party operator), it being understood that LINN will request additional detail or information regarding such AFE or other proposal on behalf of Berry if requested by Berry. If Berry fails to respond in writing 24 hours in
advance of the deadline provided by a Third Party or under the applicable contract with respect to such AFE or other proposal, then LINN may respond in the ordinary course of business using its business judgment to determine the response that, in
LINN’s reasonable belief based on the information available to LINN, would be in the best interest of Berry; provided, however, that LINN shall not owe, and nothing herein shall be deemed to impose, any fiduciary duties in favor
of Berry. LINN shall promptly forward to Berry any AFE related to the Berry Properties that LINN receives subsequent to the end of the Transition Period. 

  

	 	1.3	 Permits. LINN shall use reasonable best efforts to maintain all Berry Permits as described in
Section 1.3 of Exhibit B during the Transition Period. With respect to the Berry Permits that are held in the name of LINN and are transferable or assignable, LINN shall transfer or assign such Berry Permits to Berry on or before the end
of the Transition Period, as appropriate, and Berry shall accept such transfer or assignment if required under Applicable Law; provided, however, that any costs or expenses associated with such transfer or assignment shall be the sole
responsibility of, and paid entirely by, Berry in accordance with and subject to the terms and conditions of Section 5.2(A). LINN shall have no obligation to secure the required bonding, insurance, registration, or approvals to do business in a

  
 3 

	 	
particular state or area on behalf of Berry to allow for such a Berry Permit transfer, and shall not be responsible to the extent it is not reasonably practicable to transfer or assign any Berry
Permit to Berry at the end of the Transition Period or at all. 

  

	 	1.4	Transportation and Marketing. LINN shall provide, or cause to be provided, (i) midstream services, (ii) transportation and marketing services, (iii) gas control services, and (iv) other
similar services to sell the Hydrocarbons produced from the Operated Berry Properties prior to the end of the Transition Period, as further described in Section 1.4 of Exhibit B. LINN shall maintain and administer the Berry Contracts and
other contractual arrangements to sell the Hydrocarbons produced from the Berry Properties in its ordinary course of business through the end of the Transition Period. Subject to and in accordance with Section 2.10, LINN
may negotiate new or replacement Berry contracts related to and as part of the Services described in this Section 1.4 on month-to-month terms; provided,
however, that LINN will not provide any legal services related to such negotiation and any such contract will ultimately be executed by an authorized Berry officer or other authorized representative of Berry on behalf of Berry.

  

	 	1.5	Well Maintenance. With respect to the Berry Wells included in the Operated Berry Properties, during the Transition Period, LINN shall provide supervision for remedial operations and well service operations, and
establish and maintain well files, as further described in Section 1.5 of Exhibit B. 

  

	 	1.6	Payment Services. Subject to Article 5, during the Transition Period, LINN shall make payments associated with the ownership, operation, use, or maintenance of the Berry Properties as further described in
Section 1.6 of Exhibit B; provided, however, that in no event will LINN be required to expend funds and other resources beyond levels projected in Berry’s 2017 capital budget as of January 1, 2017.

  

	 	1.7	Lease and Land Administration. During the Transition Period, LINN shall provide land, land administration, lease, and title services with respect to the Berry Properties, including those Services described in
Section 1.7 of Exhibit B. For the avoidance of doubt, during the Transition Period, LINN shall provide assistance preparing any land attachment required for a mortgage filing, but the preparation of mortgages and filing of mortgages and
related documents will be Berry’s responsibility. 

  

	 	1.8	 Regulatory Affairs. During the Accounting Period, but only with respect to the Hydrocarbons produced from
and activities related to the Berry Properties prior to the end of the Transition Period, LINN shall provide the Services described in Section 1.8 of Exhibit B relating to regulatory requirements applicable to the Berry Properties. For
the avoidance of doubt, LINN shall have no obligation to make regulatory filings required to qualify Berry as the operator of any of the Berry Properties, and such obligation shall be handled entirely by Berry prior to the end of the Transition
Period. Notwithstanding anything to the contrary 

  
 4 

	 	
contained herein, LINN shall have no responsibility for any information provided by Berry to LINN that may be included in any regulatory filing or undertaking, nor shall it be responsible to the
extent of any investigation, inquiry or action taken by any Governmental Authority in relation to the Services, except to the extent resulting from or related to the gross negligence or willful misconduct of LINN. 

 

	 	1.9	Plugging and Abandonment. As described in Section 1.9 of Exhibit B, LINN (i) shall obtain necessary non-operating working interest owner approval and
regulatory permits to abandon any Berry Wells included in the Operated Berry Properties when required under Applicable Law to be abandoned during the Transition Period, (ii) shall provide supervision for abandonment operations of such Berry
Wells during the Transition Period, and (iii) shall file all necessary abandonment reports after completion of such operations. For the avoidance of doubt, all proposed abandonments must be approved by Berry prior to permitting or commencement
of actual abandonment operations unless such abandonments are described in Schedule 9. 

  

	 	1.10	Environmental Compliance. If LINN discovers that any of the Berry Properties are not in compliance in all material respects with environmental, health, or safety laws, rules, or regulations during the Transition
Period, then LINN shall notify Berry of such non-compliance, as described in Section 1.10 of Exhibit B. If such condition exists on an Operated Berry Property and either represents imminent danger
or is required under Applicable Law to be remediated immediately, then LINN shall, unless otherwise instructed by Berry, remediate such condition at Berry’s sole cost and expense, subject to the indemnity obligations described in this
Agreement. Nothing in this Agreement shall obligate LINN to undertake a review, audit, or other query relating to environmental, health, or safety laws, rules, or regulations applicable to any of the Berry Properties except to the extent set out in
Section 1.10 of Exhibit B. 

  

	 	1.11	Bookkeeping; Finance and Treasury; Accounting. During the Accounting Period, but only with respect to the Hydrocarbons produced from and activities related to the Berry Properties prior to the end of the
Transition Period, LINN shall provide services for the bookkeeping, finance and treasury, and accounting functions as further described in Section 1.11 of Exhibit B. LINN shall perform services for revenue, joint interest accounting,
production, and regulatory reporting functions attributable to the Berry Properties, and shall provide a statement with respect to each month (the “Monthly Statement”) reflecting the same no later than the 15th day following such
month. Except as otherwise provided herein, LINN’s obligations under this Agreement relative to accounting and disbursement of production are limited to the Hydrocarbons produced from and activities related to the Berry Properties prior to the
end of the Transition Period. 

  

	 	1.12	 Real Estate; Facilities. During the Transition Period, LINN shall manage all Berry Facilities and the Hill
Field Offices in connection with the operation of the Berry Properties (or as otherwise related to the Services), as further described in 

  
 5 

	 	
Section 1.12 of Exhibit B. For the avoidance of doubt, LINN shall not secure new facilities or negotiate new facility leases on behalf of Berry without the prior written agreement of
the Parties. 

  

	 	1.13	Information Technology Systems. 

  

	 	(A)	General. To the extent LINN’s information technology systems in existence as of the Effective Date and contracts with respect to such systems permit without incremental fees or other amounts payable by LINN
(or with incremental fees or other amounts payable by LINN that are approved in advance by Berry as Reimbursement Expenses), LINN shall provide the information technology services described in Section 1.13(A) Part One of Exhibit B during the
Transition Period and Section 1.13(A) Part Two of Exhibit B during the Accounting Period. During the Transition Period, LINN will provide reasonable assistance to Berry in (i) identifying software licenses and IT service agreements
used in connection with or attributable to the Berry Properties and (ii) determining whether such licenses or agreements are transferable or assignable; provided, however, that LINN shall not be required to negotiate or enter into
new software licenses or new IT services agreements on behalf of Berry without the Parties’ prior written agreement (and at Berry’s sole cost and expense in accordance with and subject to the terms and conditions of Section 5.2(A)), and
LINN shall not be required to maintain any license that would only be used in providing the Services if any such license is required to be renewed during the Transition Period and cannot be cancelled or terminated, without penalty or without
reimbursement of any license fee related to an unused period lasting longer than three months after the end of the Transition Period. Berry may designate one or more LINN employees in the Bakersfield office to negotiate (subject to and in accordance
with Section 2.10) assignments of existing Berry Software and new or replacement Berry software license agreements on Berry’s behalf; provided, however, that LINN will not provide any legal services
related to such negotiation and any such contract will ultimately be executed by an authorized Berry officer or other authorized representative of Berry on behalf of Berry. 

 

	 	(B)	Mirrored Licenses. Subject to the confirmation that Berry is in the process of obtaining and will obtain prior to the end of the Transition Period (whether by transfer or new license) the licenses described on
Exhibit E (the “Mirrored Licenses”), LINN shall provide the Services described in Section 1.13(B) of Exhibit B during the Transition Period. 

 

	 	(C)	 Separation Period. To the extent LINN’s information technology systems in existence as of the
Effective Date and contracts therefor permit without incremental fees or other amounts payable by LINN (or with incremental fees or other amounts payable by LINN that are approved in advance by Berry as Reimbursement Expenses), during the Separation
Period, LINN 

  
 6 

	 	
shall provide continued use of its telephonic and networking systems, which may be modified to restrict access to LINN’s network. During the Separation Period, Berry and LINN shall cooperate
to allow (i) Berry to replace all network and telephonic systems related to the Berry Assets and (ii) the rerouting of networks connected to LINN’s retained hardware and also connected to Transferred Hardware, in each case, at
Berry’s sole cost and expense in accordance with and subject to the terms and conditions of Section 5.2(A). 

  

	 	(D)	Existing IT Systems and Services. For the avoidance of doubt, LINN’s services will not extend to creating the design, configuration or creation of separate IT systems for Berry. Notwithstanding the language
in Section 1, LINN may alter existing trust relationships between domains and servers to enable provision of the Services and, with the agreement of Berry or LINN employees designated by Berry within the Bakersfield office,
may alter the manner of providing the Services described in this Section 1.13 from those provided during the Reference Period as needed to complete the transition and separation of Berry Assets as by this Agreement.

  

	 	1.14	Tax. As described in Section 1.14 of Exhibit B, LINN shall assist with, and maintain proper documentation for, the collection and remittance of federal, state, and local sales, use, and ad valorem
taxes to the extent related to the Berry Assets during the Accounting Period, but only with respect to the Hydrocarbons produced from and activities related to the Berry Properties prior to the end of the Transition Period. In addition, LINN shall
prepare and distribute 1099 forms for owners for all activity for the time period LINN is responsible for the related distributions and disbursements, and Berry shall be responsible for 1099 forms for owners for all activity effective with
Berry’s assumption of administrative responsibilities of the related distributions and disbursements. Berry will prepare and file any corporate income tax filings due for Berry, even if due during the Term. 

 

	 	1.15	Corporate Contracts. As described in Section 1.15 of Exhibit B, during the Transition Period, LINN shall perform, administer, and maintain the Berry Contracts and other contractual arrangements
existing as of the Effective Date with respect to the Berry Assets (or as otherwise related to the Services). LINN will not enter into new contracts on behalf of Berry without the prior written agreement of the Parties, other than as described in
Section 3.2; provided, however, that LINN may negotiate marketing agreements on behalf of Berry on a month-to-month term during the
Transition Period in its ordinary course of business pursuant to and in accordance with Section 1.4 and software license agreements pursuant to and in accordance with Section 1.13(A). 

 

	 	1.16	 Records Retention. As described in Section 1.16 of Exhibit B and to the extent related to the
Berry Assets or the Services, during the Accounting Period, LINN shall provide assistance in the storage and retrieval of the Berry Records and other documentation and backup information and the provision of certain historical

  
 7 

	 	
operating and financial data as requested by Berry. Berry shall be responsible for all costs and expenses associated with such storage and retrieval (including incremental costs and expenses
incurred by LINN in providing assistance in accordance with this Section 1.16) in accordance with and subject to the terms and conditions of Section 5.2(A). 

 

	 	1.17	Assistance with Transitioning the Services. During the Separation Period, LINN shall provide assistance with transitioning the performance of the Services from LINN to Berry as further described in
Section 1.17 of Exhibit B; provided, however, that in no event shall LINN be required to perform any custom formatting with respect to any data or information utilized and to be provided by LINN in connection with this
Agreement. 

  

	 	1.18	HR; Employee Benefits; Payroll. LINN shall continue to perform administration and management of human resources, employee benefits programs, and payroll services for LINN’s employees and independent
contractors, including the Services described in Section 1.18 of Exhibit B. For the avoidance of doubt, LINN will not put into place new benefit plans for Berry or perform any human resources or payroll services for Berry in its capacity
as a direct employer. 

  

	 	1.19	Registration Statement. LINN shall continue to cooperate with and provide commercially reasonable assistance to Berry in connection with the preparation and filing with the United States Securities and Exchange
Commission of a Form S-1 Registration Statement under the Securities Act of 1933 with respect to the preferred and common stock or limited liability company units in Berry’s holding company (as formed on
or before the Effective Date) or any Form 10-K or 10-Q under the Securities Act of 1933 required to be filed with the United States Securities and Exchange Commission
during the Transition Period; provided, however, that LINN will not provide any representation letters; provided, further, that LINN disclaims any and all representations or warranties as to the accuracy of the data set
forth in such S-1 Registration Statement, Form 10-K and/or Form 10-Q, and Berry hereby agrees to release and fully, indemnify,
defend and hold harmless the LINN Indemnified Parties from and against any Claims related thereto or arising therefrom except any such Claims related to or arising from the gross negligence or willful misconduct of LINN. 

 

	 	1.20	Additional Services. From time to time during the Term, Berry may request that LINN provide particular services required by Berry in addition to the Services. LINN shall provide such additional services to Berry
if and to the extent that LINN is reasonably capable of providing such additional services and the Parties agree upon the service fee to be paid by Berry for such additional services. 

 

	 	1.21	Excluded Services. For the avoidance of doubt, LINN will not be obligated to procure insurance or obtain bonds on behalf of Berry or to provide legal services to Berry (as opposed to providing internal legal
support within LINN in connection with LINN’s performance of the Services). 

  
 8 

	2.	General. 

  

	 	2.1	Standard of Performance; Disclaimer of Warranties. LINN shall conduct its activities under this Agreement in respect of the Services in a manner consistent with the ordinary course performance of such activities
during the Reference Period, and otherwise LINN shall perform the Services for the benefit of Berry in a manner substantially consistent with the manner, quality, and timing in which LINN performs the same activities for LINN’s own benefit;
provided, however, that notwithstanding anything in this Agreement to the contrary LINN shall perform its obligations under this Agreement (i) in a good and workmanlike manner, (ii) as a reasonable and prudent operator, and
(iii) in accordance with Applicable Law. EXCEPT AS SET FORTH IN THE IMMEDIATELY PRECEDING SENTENCE, LINN HEREBY DISCLAIMS ANY AND ALL WARRANTIES WITH RESPECT TO THE SERVICES OR LINN’S PERFORMANCE OF THE SERVICES, INCLUDING DISCLAIMING ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

  

	 	2.2	Notice of Accidents. LINN shall promptly provide Berry notice of any material accidents or emergencies that occur with respect to the Services or the Berry Assets. 

 

	 	2.3	Personnel and Access. 

  

	 	(A)	Personnel. LINN shall provide personnel to staff and perform the Services, which may be accomplished to the extent necessary by (i) employees of LINN or Third Party contractors (subject to paragraph
(A) of Section 5.2). All personnel engaged or directed by LINN to perform LINN’s obligations under this Agreement shall be duly qualified, licensed, trained, and experienced to perform such obligations. LINN shall
at all times require such personnel to comply with Applicable Law in the same manner as a reasonable and prudent operator. Notwithstanding anything to the contrary contained herein, in no event shall LINN be required to maintain the employment of,
or any contractual relationship with, any particular individual or group, or to make available to Berry any particular individual or any individual at any particular time. Berry acknowledges the transitional nature of the Services and agrees that
LINN may make changes from time-to-time in the personnel performing the Services if LINN is making similar changes in performing similar services for itself.

  

	 	(B)	 Access. Berry shall have access to the Operated Berry Properties, the Berry Facilities, and the Berry
Related Assets at all times during normal business hours. Should Berry desire access to Non-Operated Berry Properties during the Transition Period, LINN will use commercially reasonable efforts to coordinate
access to the same with the relevant operator. LINN shall have sole authority to select, supervise, and direct all Representatives in the performance of the Services. Berry may consult

  
 9 

	 	
with LINN’s Representatives who are providing the Services, and LINN shall make such Representatives reasonably available to Berry for such consultations during normal business hours, either
directly or through one or more designated centralized point(s) of contact, in each case subject to the applicable individual’s availability during normal business hours. In connection with Berry’s access to the Operated Berry Properties
or to any Berry Related Assets located on property owned by LINN, Berry must be accompanied by a LINN Representative at all times. Berry shall indemnify, defend, and hold harmless the LINN Indemnified Parties from and against any and all liability
for injury to Berry’s officers, employees, invitees, and/or agents, resulting from, or relating to, the presence of any such officers, employees, invitees, and/or agents at any Operated Berry Properties, any
Non-Operated Berry Properties with respect to which LINN coordinated access for Berry, or any property owned by LINN, or from any such person’s traveling to or from such property in a vehicle owned by
LINN, in each case other than any such injury and resulting liability caused by the gross negligence or willful misconduct of LINN. 

  

	 	2.4	Consents. If any consents, approvals, or authorizations of any Person are identified as being required in connection with this Agreement, then LINN and Berry shall use commercially reasonable efforts to obtain as
promptly as possible such consents, approvals, or authorizations; provided, however, that LINN shall be the primary point of contact with any such Person solely as it relates to the Services performed by LINN at that time. Berry shall
be responsible for any costs and expenses incurred with Berry’s prior written approval that are attributable to obtaining any consents, approvals, or authorizations required in connection with this Agreement. If the consent, approval, or
authorization of any Person, if required, is not obtained within a reasonable time period after identification thereof, then LINN and Berry shall work together to develop and effect a commercially reasonable alternative in connection with the
Services affected by such failure to obtain such consent, approval, or authorization. 

  

	 	2.5	Additional Records. Except as provided in this Agreement, nothing shall require LINN to provide records, financial information, or other information that, in each case, is not kept or reported by LINN in the
ordinary course of business. For the avoidance of doubt, any reporting required of LINN during the pendency of its bankruptcy shall be deemed to be in LINN’s ordinary course of business for purposes of this
Section 2.5. 

  

	 	2.6	No Additional Systems. Nothing herein shall require LINN to install, expand, or modify any equipment, systems, or services at any location beyond the level provided by LINN during the Reference Period.

  

	 	2.7	 Information Necessary to Perform the Services. Berry shall promptly provide any information and assistance
that is reasonably requested by LINN and necessary for LINN to perform or cause to be performed any portion of the Services. If Berry fails to provide, or delays in providing, such necessary information or

  
 10 

	 	
assistance, then LINN shall be relieved of its obligation to perform such portion of the Services to the extent prevented thereby; provided, however, that LINN shall use
commercially reasonable efforts to mitigate, overcome, or work around such failure or delay in order to perform such portion of the Services; provided, further, that Berry will reimburse LINN for any reasonable and documented
additional costs or expenses incurred by LINN that are attributable to mitigating, overcoming, or working around the effects of such failure or delay in accordance with and subject to the terms and conditions of paragraph (A) of
Section 5.2. 

  

	 	2.8	Audit. At any time during the Term and during the period up to 180 days after the Final Settlement Statement is finalized under Section 5.8, Berry shall have the right to conduct one
audit of the books and records of LINN insofar as they pertain to the Services, the Monthly Settlement Statements, the Monthly Statements, or the Final Settlement Statement. Such audit may be conducted by an accounting firm or other contractor
retained by Berry. Berry is entitled to an adjustment of the amounts reflected in the Monthly Settlement Statements, the Monthly Statements, or the Final Settlement Statement when an error occurs. Any such audit must be completed and objections made
within 60 days of its initiation. Any dispute that is not resolved between the Parties shall be resolved in accordance with the arbitration procedure set forth in Article 8. 

 

	 	2.9	Transition Period Extension. Berry shall use its reasonable best efforts to assume operatorship of all of the Operated Berry Properties on or before the last day of the
un-extended Transition Period. Berry shall provide to LINN evidence reasonably satisfactory to LINN of Berry’s satisfaction of the predicate requirements of Section 3.4 for
delivery of the Change of Operator Forms no less than 14 days prior to the last day of the Transition Period, or the Transition Period will be extended for an additional calendar month (unless LINN, in its sole discretion, waives such compliance).
In addition, if Berry determines that it requires all or any portion of the Services to continue beyond the end of the Transition Period, then Berry may elect to extend the Transition Period for an additional month by delivering to LINN written
notice of such election no less than 15 days prior to the last day of the Transition Period; provided, however, that the Transition Period may only be extended once under this Section 2.9. 

 

	 	2.10	 General Control and Consultation. The Parties acknowledge and agree that Berry shall at all times be the
owner of the Berry Assets and that LINN is providing the Services solely as a service provider. Subject to Section 2.1, and to the extent not inconsistent with Section 9.9, the Services shall be
provided by LINN to the extent of and substantially in the same manner as LINN has conducted its business during the Reference Period and, in all material respects consistent with Berry’s 2017 capital budget as of January 1, 2017, under
the general control of and subject to the reasonable direction of Berry; provided, however, that LINN shall control the manner and method of performing the Services, including all day-to-day Services provided for in Article 1. Without limiting the foregoing, LINN shall consult with the chief executive officer of Berry on a regular basis throughout the Term regarding the Services
and shall act in accordance with the 

  
 11 

	 	
written instructions, if any, provided by such chief executive officer or his designee with respect to particular aspects of the Services. Notwithstanding anything herein to the contrary,
(i) in no event shall LINN be required to act in a manner inconsistent with its health, safety and environmental policies in effect as of the Execution Date and (ii) LINN may take any action it deems necessary in its reasonable belief and
in good faith to prevent or avoid imminent risk to life or property. 

  

	3.	Berry Separation. 

  

	 	3.1	Assets 

  

	 	(A)	Representation. LINN represents and warrants that no real or personal property was transferred from Berry to LINN at any time between December 1, 2013 and the Effective Date. To the extent either Party
discovers that the foregoing is inaccurate, the Parties will take all steps necessary pursuant to Section 3.7 to transfer such real or personal property back to Berry. The foregoing is the sole and exclusive remedy with
respect to any breach of the representations and warranties set forth in this paragraph (A) of Section 3.1. 

  

	 	(B)	Berry Assets. As used in this Agreement, the “Berry Assets” shall mean all real and personal properties, assets and interests that are part of the Berry Estate, including all real and personal
properties, assets and interests described on the Berry Statement of Assets and Liabilities. Without limiting the foregoing, the “Berry Assets” shall include all of Berry’s right, title and interest in, to or under the following (it
being expressly understood that some of the following are interests in properties in which Berry is a joint interest owner with LINN and that all references to Schedules in this Section 3.1(B) are for information purposes only and shall not
expand or diminish the property of the Berry Estate or the LINN Estate, as applicable): 

  

	 	(i)	the Leasehold Interests and Mineral Interests summarized on the Berry Statement of Assets and Liabilities and as further described on Schedule 1, and Berry’s interest in the Leases and lands included in any
units with which such Leasehold Interests and Mineral Interests (or the lands covered thereby) may have been pooled, unitized, or communitized (collectively, the “Berry Leasehold and Mineral Interests”); 

 

	 	(ii)	the interests in oil, gas, water, disposal, observation, or injection wells located on or traversing the Berry Leases and Mineral Interests, whether producing, non-producing,
plugged, unplugged, shut-in, or temporarily abandoned, as described on Schedule 2 (collectively, the “Berry Wells”, and together with the Berry Leasehold and Mineral Interests, the
“Berry Properties”); 

  
 12 

	 	(iii)	the Hydrocarbons in storage above a custody transfer point; and 

  

	 	(iv)	the office leases, field offices, and storage yards described on the Berry Statement of Assets and Liabilities and as further described on Schedule 3 (collectively, the “Berry Facilities”).

 For the avoidance of doubt, the Parties acknowledge and agree that from and after the Effective Date, Berry shall continue
to be responsible for all Liabilities attributable to or arising from the Berry Assets except as otherwise provided in this Agreement and except for any such Liabilities discharged or otherwise released pursuant to or in connection with the Berry
Consensual Plan or the LINN Consensual Plan. 
  

	 	(C)	Berry Related Assets. As used in this Agreement, the term “Berry Related Assets” means the following real and personal properties, assets and interests, whether part of the Berry Estate or part
of the LINN Estate; provided, however, that where the following relate to both Berry Assets and real or personal property that is part of the LINN Estate, only the proportion of the same related to the Berry Assets shall be included in
the definition of “Berry Related Assets”: 

  

	 	(i)	The real property described on Schedule 4 (together with the field offices located thereon, the “Hill Field Offices”); 

 

	 	(ii)	all of the equipment, machinery, fixtures and other tangible personal property and improvements located on or used or held for use in connection with the ownership or operation of the Berry Properties, including tanks,
boilers, plants, injection facilities, saltwater disposal facilities, compressors and other compression facilities (whether installed or not), pumping units, flow lines, pipelines, gathering systems, Hydrocarbon treating or processing systems or
facilities, meters, machinery, pumps, motors, gauges, valves, power and other utility lines, roads, computer and automation equipment, SCADA and measurement technology, the Transferred Hardware, field radio telemetry and associated frequencies and
licenses, pressure transmitters, central processing equipment and other appurtenances, improvements and facilities (collectively, the “Berry Equipment”); 

 

	 	(iii)	all of the pipes, casing, tubing, tubulars, fittings, and other spare parts, supplies, tools, and materials located on, used, or held for use on or held as inventory in connection with the ownership or operation of the
Berry Properties, Berry Facilities, Hill Field Offices, or Berry Equipment; 

  
 13 

	 	(iv)	all of the governmental (whether federal, state, or local) permits, licenses, authorizations, franchises, grants, easements, variances, exceptions, consents, certificates, approvals, and related instruments or rights
relating to the Berry Properties that are not held by LOI as operator of Operated Berry Properties (collectively, the “Berry Permits”); 

  

	 	(v)	all of the Contracts (including sales and purchase contracts, operating agreements, exploration agreements, development agreements, balancing agreements, farmout agreements, service agreements, transportation,
processing, treatment and gathering agreements, equipment leases and other contracts, agreements and instruments), including the Contracts described in Schedule 5, (collectively, the “Berry Contracts”) but subject to
Section 3.2 and excluding any Master Service Agreement in the name of LINN, other than those described in Part D of Schedule 5; 

  

	 	(vi)	all of the proprietary rights and non-proprietary rights to all seismic, geological, geochemical, or geophysical data (including all maps, studies, Third Party studies, reservoir
and production engineering studies and simulations, and all field and acquisition records) related to or obtained in connection with the Berry Properties to the extent transferrable without a fee (or, in the event a transfer fee applies, to the
extent Berry has agreed, in writing, to pay such transfer fee) (the “Berry G&G Data”); 

  

	 	(vii)	all of the Surface Rights; 

  

	 	(viii)	all claims, refunds, abatements, variances, allocations, causes of action, claims for relief, choses in action, rights of recovery, rights of set-off, rights of indemnity,
contribution or recoupment, counter-claims, cross-claims and defenses to the extent related to the Berry Assets; 

  

	 	(ix)	 all of the information, books, databases, files, records and data (other than the Excluded LINN Records and
Data), whether in written or electronic format, relating to Berry or any of the other Berry Assets (collectively, the “Berry Records”), which Berry Records shall include all minute books, stock ledgers, corporate seals, and stock
certificates of Berry; all reservoir, land, operation and production files and records, inclusive of lease records, well records, division order records, property ownership reports and files, contract files and records, well files, title records
(including abstracts of title, title opinions and memoranda, and title curative documents), correspondence, production records, prospect files and other prospect information, supplier lists and files, customer lists and files; and all other data
including proprietary and non-proprietary engineering, files and records in the actual possession or control of Berry (or, if applicable, LINN to the extent

  
 14 

	 	
transferable to Berry (i) without material restriction that is not overcome using commercially reasonable efforts (including a material restriction against assignment without prior consent
if such consent is not obtained after commercially reasonable efforts) and (ii) without the payment of money or delivery of other consideration or unduly burdensome effect that Berry does not agree in writing to pay or bear), inclusive of maps,
logs, core analysis, formation tests, cost estimates, studies, plans, prognoses, surveys and reports, and including raw data and any interpretive data or information relating to the foregoing, and any other proprietary data in the actual possession
or control of Berry (or, if applicable, LINN to the extent transferable to Berry (i) without material restriction that is not overcome using commercially reasonable efforts (including a material restriction against assignment without prior
consent if such consent is not obtained after commercially reasonable efforts) and (ii) without the payment of money or delivery of other consideration or unduly burdensome effect that Berry does not agree in writing to pay or bear) and
relating to the ownership, operation, development, maintenance or repair of, or the production, gathering, treatment, processing, storing, sale or disposal of Hydrocarbons or produced water from, the Berry Properties; 

 

	 	(x)	all of the Berry Receivables, cash call pre-payments and other refunds due to Berry (or, if applicable, LINN) for royalty overpayments or future deductions as royalty offsets
associated with any of the Berry Properties; 

  

	 	(xi)	all of the trade credits, accounts receivable, note receivables, take or pay amounts receivable, and other receivables attributable to the Berry Assets or other Berry Related Assets; 

 

	 	(xii)	any software licenses and IT service agreements used solely in connection with or wholly attributable to the Berry Properties, but only to the extent transferable without material restriction (the “Berry
Software”); 

  

	 	(xiii)	all California greenhouse gas emissions credits and allowances and any other carbon dioxide allowances that are part of the Berry Estate or scheduled on Schedule 10; and 

 

	 	(xiv)	all of the vehicles used by, assigned to or otherwise associated with any Berry Employee or solely with any of the other Berry Operated Assets (including any such vehicle that is part of the LINN Estate) (the
“Vehicles”). 

  
 15 

	 	3.2	Assignment of Contracts. 

  

	 	(A)	General. Subject to paragraph (B) of this Section 3.2, as soon as practicable, but in any event prior to the end of the Transition Period, LINN will assign or cause to be assigned
to Berry each Berry Contract to which LINN is party (whether in its own name or as agent for Berry), including marketing agreements, operating agreements, transportation agreements, equipment leases, electrical agreements, rights of way, surface use
agreements and other agreements (such Berry Contracts that relate solely to Berry or the Berry Assets, including the Berry Contracts so identified in Part B of Schedule 5, are referred to in the Agreement collectively as the “Berry
Operating Contracts”; and such Berry Contracts that relate both to Berry or the Berry Assets on the one hand and LINN or property that is part of the LINN Estate, on the other, including the Berry Contracts so identified in Part C of
Schedule 5, are referred to in the Agreement collectively as the “Berry Shared Contracts”); provided, however, that LINN shall only assign such Berry Shared Contracts that are capable of being subdivided without
penalty or any incremental cost or expense being paid by LINN and without requiring LINN or Berry to retain any liability for the other under such contract (and in such case shall only assign the portion of such Berry Shared Contract that applies to
the Berry Assets); provided, further, that LINN shall use its commercially reasonable efforts to obtain from each Berry Shared Contract counterparty a separation of its Berry Shared Contract into separate contracts between such
counterparty and each of LINN and Berry so long as the terms and conditions of the underlying agreement remain substantially the same. Berry shall take such actions as may be required to accept assignment of the Berry Operating Contracts and the
Berry Shared Contracts. Notwithstanding the foregoing, if both Berry and LEH are parties to any Berry Shared Contract and such contract relates only to the ownership or operation of properties in which LEH and Berry have shared ownership, LINN may
elect to take no action to partition the contracts during the Transition Period, which shall not prejudice either Party’s ability to request or negotiate a partition or novation from the counterparty of such contract at a later date and shall
not operate to create a joint and several liability under such contract. 

  

	 	(B)	Consent Requirements. Notwithstanding anything to the contrary contained herein, LINN shall not assign any Berry Operating Contract or Berry Shared Contract if the terms of such contract prohibit such assignment,
require a consent to such assignment that is not given after LINN has used all commercially reasonable efforts to obtain such consent, or require a fee for such assignment that Berry does not agree to bear, which Berry Operating Contracts and Berry
Shared Contracts include those identified in Schedule 5. 

  
 16 

	 	(C)	Assigned Operating Contract. Any contract assigned pursuant to this Section 3.2 shall be referred to herein as an “Assigned Operating Contract”; provided,
however, that as to Berry Shared Contracts that are assigned, only the portion of the contract assigned to Berry shall be included in the term Assigned Operating Contract. 

 

	 	3.3	Certain Ancillary Agreements. LINN (as applicable) and Berry will execute the following agreements on the dates specified below: 

 

	 	(i)	any change of operator forms required to designate Berry as the operator of the Operated Berry Properties (the “Change of Operator Forms”) as soon as practical but in no event later than the final day
of the Transition Period; and 

  

	 	(ii)	letters in lieu of transfer or division orders directing all purchasers of production from the Berry Assets to make payment of proceeds attributable to such production to Berry from and after the Effective Date in a
form reasonably satisfactory to both Parties (the “Letters in Lieu”) as soon as practical but in no event later than the final day of the Transition Period. 

In connection with the ancillary agreements described above in this Section 3.3, the Parties agree that Berry shall be the recognized
operator of the Hill field and LINN shall be the recognized operator of the Hugoton field. 
  

	 	3.4	Delivery of Documents. 

  

	 	(A)	Change of Operator Forms. On or before the end of the last day of the Transition Period (or otherwise in accordance with applicable state requirements), LINN will submit the Change of Operator Forms to the
required parties; provided, however, that Berry must have secured the necessary bonding, insurance and regulatory approvals to release LINN of any ongoing liability for Berry’s operatorship. 

 

	 	(B)	Letters in Lieu. On or before the first day of the last month of the Transition Period, LINN will submit the Letters in Lieu to the appropriate counterparties. 

 

	 	(C)	 Documents Related to Joint Use Agreement. On or before April 1, 2017, LINN will deliver to Berry the
following documents related to that certain Joint Use Agreement of even date herewith, by and between LEH and Berry (the “Joint Use Agreement”): (i) a projected budget for the “Gathering Facilities” for the remainder of
calendar year 2017, which will include an itemized summary of projected “Capital Expenditures,” “Operating Expenses” and planned nonrecurring maintenance items, and shall list each charge or expense that will be payable to an
“Affiliate” of LEH (excluding charges and expenses related to LOI’s employees and third party charges and expenses passed through by LOI to LEH without 

  
 17 

	 	
markup) (as each such term is defined in the Joint Use Agreement); and (ii) an amended and restated Exhibit D to the Joint Use Agreement containing a detailed description of all real and
personal property comprising the “Gathering Facilities” (as defined in the Joint Use Agreement) based on information in LINN’s files and records, including a reasonably detailed description of each right-of-way and other real property interest included therein and a reasonably detailed description, with specifications, of each segment of pipe and other component thereof. 

 

	 	3.5	Assignment of Operating Property. 

  

	 	(A)	Inventory. During the first 30 days of the Term, LINN will inventory all (i) Berry Equipment that is part of the LINN Estate (the “Berry Operating Equipment”), (ii) pipes, casing, tubing,
tubulars, fittings, and other spare parts, supplies, tools, and materials located on, used or held for use on or held as inventory in connection with the ownership or operation of the Berry Assets that are part of the LINN Estate (the “Berry
Operating Yard Equipment”), (iii) Transferred Hardware, and (iv) Vehicles (together with the Berry Operating Equipment, Berry Operating Yard Equipment and the Transferred Hardware, the “Berry Operating Property”).

  

	 	(B)	Valuation. On or before the 45th day of the Term, LINN will provide Berry with a list of the Berry Operating Property, together with an estimated fair market value (taking into account normal annual depreciation)
of the portion of the Berry Operating Property that is not part of the Berry Estate. Berry will notify LINN within ten days if Berry disagrees with any valuation for such portion of the Berry Operating Property, in which case, Berry and LINN will
work in good faith to resolve their disagreement on before the 75th day of the Term. If the Parties are unable to agree to a value for a Vehicle prior to such date, then such Vehicle will not be included in the term “Berry Operating
Property” for the purpose of paragraph (C) of this Section 3.5 or the term “Berry Related Assets” and will be retained without further obligation by LINN. If the Parties are unable to agree to a value
for any portion of the Berry Operating Equipment or the Berry Yard Equipment that is not part of the Berry Estate, then LINN will hire a Third Party appraiser to determine the amount of such value, the expense for such appraiser to be shared equally
between the Parties. 

  

	 	(C)	 Conveyance. Once the Parties have agreed to the fair market value (taking into account normal annual
depreciation) for the portion of the Berry Operating Property that is not part of the Berry Estate (or the appraiser has determined such value in accordance with paragraph (B) of this Section 3.5, in either case the
aggregate amount to be referred to herein as the “Operating Property Amount”), LINN will convey the Berry Operating Property and the Transferred Hardware to Berry using a Bill of Sale in a

  
 18 

	 	
form substantially similar to Exhibit F. In addition, LINN will take any additional steps necessary under applicable state or local law to transfer any title held by LINN to the Berry
Operating Property to Berry. Berry will reimburse LINN for the Operating Property Amount in accordance with Section 5.4. Prior to the end of the Transition Period, LINN will convey the Hill Field Offices to Berry using a
Special Warranty Deed in a form substantially similar to Exhibit G. 

  

	 	(D)	Berry Records. Throughout the Transition Period (and, with regard to records created during the Accounting Period, throughout the Accounting Period), LINN will deliver the Berry Records to Berry, at Berry’s
expense, (to the extent not already delivered) in their current form and format; provided, however, that LINN shall not be required to conduct processing, conversion, compiling or any other further work with respect to delivery of the
Berry Records; provided, however, further, that LINN may retain a copy of any Berry Records related to accounting or the Hill assets (and may copy, at Berry’s expense, Berry Records related to the Hugoton assets and retain
the original, delivering the copy as the Berry Record).    Berry agrees to maintain the Berry Records for a period of five years following the expiration of the Term, and, during such time, to (i) provide copies of any Berry
Records that relate to the accounting, to the Hill and Hugoton assets, or are needed to respond to any legal proceeding or claim by a Third Party or by Berry, to LINN, at LINN’s sole expense and upon reasonable advance notice, and
(ii) give 90 days’ prior written notice to LINN before destroying any Berry Record, in which event LINN may, at its option and expense, upon prior written notice given within such 90 day period to Berry, take possession of such Berry
Records within 180 days after the date of such notice. 

  

	 	(E)	Hugoton Field Offices. LINN agrees that if Berry (or its successor in interest) becomes the operator of the Hugoton properties under or pursuant to the applicable Joint Operating Agreement between Linn and Berry
dated of even date herewith, then LINN or its successor in interest will convey the Hugoton Field Offices to Berry (or such successor in interest) for $1 using a Special Warranty Deed in a form substantially similar to Exhibit G.

  

	 	3.6	Assignment of Berry Related Assets. Without limiting the provisions set forth in Section 1.3 regarding the transfer or assignment of the Berry Permits,
Section 3.2 regarding the assignment of the Berry Contracts, and Section 3.5 regarding the conveyance of the Berry Operating Property, prior to the end of the Transition Period, LINN shall
transfer, assign, and convey or cause to be transferred, assigned, and conveyed to Berry all other Berry Related Assets that are held in the LINN Estate. Such transfers, assignments, and conveyances shall be in form reasonably satisfactory to the
Parties. 

  
 19 

	 	3.7	Further Assurances. For a period of one year from the Effective Date, each of LINN and Berry shall (i) furnish upon request to the other Party such further information, (ii) execute, acknowledge and
deliver to such other Party such other documents, and (iii) do such other acts and things, as such other Party may reasonably request for the purpose of carrying out the intent of this Agreement or the Berry Consensual Plan or the Linn
Consensual Plan. In addition, LINN shall use commercially reasonable efforts to continue to assist Berry in connection with the resolution of claims against Berry and Linn Acquisition Company, LLC relating to the Chapter 11 Cases (as defined in the
Berry Consensual Plan); provided, however, that LINN will not be required to provide such assistance after the Term of this Agreement absent mutual agreement of the Parties, including agreement as to the additional compensation to LINN
for such assistance. 

  

	4.	Employment. 

  

	 	4.1	Access Period. During the period from the Effective Date until the date that is 15 days prior to the end of the Transition Period (the “Access Period”), LINN shall provide to Berry or its
designated representatives reasonable access to any LINN employee on the Available Employee List attached as Schedule 6. At any time prior to the date that is 20 days prior to the end of the Accounting Period, LINN may designate additional
employees to be made available to Berry, such designation to be made in writing, in which case such individuals will be treated as Berry-LINN Employees for the purpose of Section 4.2 but not
Section 4.3. 

  

	 	4.2	Employment Offers. All Berry Employees shall be extended offers of employment by Berry during the Transition Period in accordance with an offer process determined by Berry in consultation with LINN. In addition,
either Party may extend employment offers to any of the Berry-LINN Employees during the period beginning on the date that is 15 days prior to the end of the Transition Period and ending on the date that is 15 days prior to the end of the Accounting
Period (the “Offer Period”). Any employment offer will require acceptance of the same within ten days and will be effective on the first day following the end of the Transition Period (or, if appropriate for a Berry-Linn Employee,
on the first day following the end of the Accounting Period). Each Party will share the responses to employment offers made under this Section 4.2 promptly upon receipt with the other Party; provided, however,
that neither Party shall be required to disclose the terms of any offer except to the extent necessary to establish any severance fees or obligations under Section 4.3. 

 

	 	4.3	 Severance Amounts. At the conclusion of the Offer Period, Berry shall provide a list of all Available
Employees to whom Berry submitted an offer. For each Berry Employee (i) who is not made an offer of employment that would avoid a Qualifying Termination for such employee (as such term is defined in LINN’s Severance Plan, attached hereto
as Schedule 7) and (ii) whose employment is terminated by LINN on or prior to the end of the Term, Berry will be charged 100 percent of any severance fees and obligations

  
 20 

	 	
associated with such termination. For each Berry-LINN Employee (x) who is not made an offer of employment that would avoid a Qualifying Termination for such employee and (y) whose
employment is terminated by LINN on or prior to the end of the Term, Berry will be charged 30 percent of any severance fees and obligations associated with such termination (the aggregate amount payable by Berry under this
Section 4.3 is referred to herein as “Berry Severance Fees”). LINN shall retain responsibility for (A) 70 percent of any severance fees and obligations associated with the termination on or
prior to the end of the Term of any Berry-LINN Employee, and (B) 100 percent of any severance fees and obligations associated with the termination of any LINN employee who is not an Available Employee or whose employment is not terminated on or
before the end of the Term (even if such employee provides Services under this Agreement). 

  

	 	4.4	Non-Solicitation of Certain Employees. During the Transition Period, LINN shall not solicit any Berry Employee to remain as an employee of LINN or otherwise encourage or
induce such Berry Employee not to accept employment with Berry; provided, however, that nothing in the foregoing will prohibit LINN from making such solicitation after the end of the Transition Period to any Berry Employee who did not
accept Berry’s offer of employment under Section 4.2, subject to the following sentence. In addition to the immediately preceding sentence, and except as specifically described in Sections 4.1 and 4.2,
for a period of two years from the Effective Date, neither LINN nor Berry or either of their respective Affiliates will, directly or indirectly, (i) solicit for employment, offer employment or employ any employee of the other Party or its
respective Affiliates, (ii) otherwise divert or induce any such employee to terminate or materially alter his or her employment or contractual relationship with the other Party or its respective Affiliates, or (iii) agree to do any of the
foregoing; provided, however, that neither Party shall be considered to have breached the provisions of this sentence solely because any such employee responds to a general advertisement or a Third Party search firm that has not
directed its search specifically at such employees of the other Party or its respective Affiliates. Each Party shall be liable for the compliance of its Affiliates and its and their respective agents and representatives with the terms of this
Section 4.4. Each Party acknowledges and agrees that if such Party violates (or threatens to violate) any of the terms of this Section 4.4, then the other Party will not have an adequate remedy at
law and in such event such other Party shall have the right, in addition to all other rights available at law or in equity, to obtain injunctive relief to restrain any breach or threatened breach of the terms of this
Section 4.4. 

  

	 	5.	Term and Termination; Service Fees; Monthly Settlement. 

  

	 	5.1	Term and Termination. 

  

	 	(A)	Term. This Agreement shall be effective as of the Effective Date, and shall continue in effect until the end of the Accounting Period, unless terminated earlier in accordance with this Section 5.1
(the “Term”). Except as otherwise provided herein, upon expiration of the Term or 

  
 21 

	 	
earlier termination of this Agreement, LINN shall no longer be responsible for the performance of the Services, and all rights and obligations under this Agreement shall cease except for
(i) rights or obligations that are expressly stated to survive the expiration or termination of this Agreement, (ii) the provisions set forth in the last sentence of paragraph (B) of Section 2.3, in paragraph
(A) of Section 3.1, in paragraph (D) of Section 3.5 in paragraph (E) of Section 3.5, in paragraph (D) of this Section 5.1, in
Sections 3.7, 4.4, 5.2, 5.4 and 5.5, and in Articles 6, 8, and 9, which shall continue in accordance with their terms, and (iii) the last sentence in paragraph (E) of this
Section 5.1, which will survive the expiration or termination of this Agreement indefinitely, and (iv) liabilities and obligations that have accrued prior to such expiration or termination, including the obligation to
pay any amounts that have become due and payable prior to such expiration or termination. 

  

	 	(B)	Termination by Berry. Berry may, without cause and in accordance with the terms and conditions hereunder, (i) request the discontinuation of one or more portions of the Services, or (ii) request the
discontinuation of all of the Services and terminate this Agreement prior to the expiration of the Term, in each case, by giving LINN not less than 15 days’ prior written notice; provided, however, that (a) the effective date
of such termination must be the first or last day of a calendar month, (b) the discontinuation of less than all of the Services will require LINN’s consent (which consent shall not be unreasonable delayed or withheld), (c) Berry must have
satisfied the condition precedent of paragraph (A) of Section 3.4 prior to terminating the Services described in Section 1.1 or all of the Services, and (d) Berry shall be liable to LINN
for all fees and expenses accrued with respect to the provision of the discontinued Services as of the date of discontinuation, including any amounts that LINN remains obligated to pay under any contract entered into in accordance with this
Agreement solely in order to provide the Services. 

  

	 	(C)	Termination for Material Breach. Either Party may terminate this Agreement if the other Party is in material breach of this Agreement and such other Party fails to cure such breach within five Business Days
following receipt of written notice thereof from the non-breaching Party; provided, however, that (i) LINN may not terminate this Agreement and withdraw from providing the Services if such
breach is not capable of being cured and Berry continues to pay the Service Fees, and (ii) subject to Berry using all reasonable efforts to obtain a qualified and financially responsible replacement for LINN reasonably acceptable to Berry and
Berry’s continued payment of the Service Fees, LINN may not terminate this Agreement and withdraw from providing the Services until a qualified and financially responsible replacement for LINN reasonably acceptable to Berry has agreed to take
over as LINN and assume responsibility for the Services under this Agreement on terms and conditions reasonably acceptable to Berry. 

  
 22 

	 	(D)	Obligations of LINN upon Termination. Without limiting the second sentence of paragraph (A) of this Section 5.1, upon termination of this Agreement, LINN shall assign, transfer, and
deliver to Berry (or to such other Person as Berry shall direct) (i) title to all Berry Related Assets that are part of the LINN Estate (in accordance with the provisions of Sections 3.2, 3.5, and 3.6 and subject to
Berry’s requirement to reimburse LINN for the same) and (ii) possession and control of all operations hereunder and all of the Berry Assets in the possession or control of LINN or any subcontractor of LINN, but only to the extent Berry has
complied or does comply with the conditions precedent described in Section 3.4(A). Without limiting the foregoing, upon the effective date of termination, LINN shall assign and deliver to, and relinquish custody in favor of, Berry (or such
other Person selected by Berry) all of Berry’s funds held or controlled by LINN, and all Suspense Funds, and all books, accounts, records and inventories relating to the Berry Assets, facilities and/or the operations hereunder.

  

	 	(E)	Obligations of Berry upon Termination. Effective upon termination of this Agreement, Berry assumes and agrees to discharge when due any and all Liabilities attributable to or arising from the Berry Related Assets
except as otherwise provided in this Agreement and except for any such Liabilities discharged or otherwise released pursuant to or in connection with the Berry Consensual Plan or the LINN Consensual Plan. Notwithstanding anything herein to the
contrary, Berry hereby agrees to release and fully indemnify, defend, and hold harmless the LINN Indemnified Parties from each and every Claim related to such assumed Liabilities. 

 

	 	5.2	Service Fees and Employee Expenses. 

  

	 	(A)	Reimbursement Expenses. Berry shall pay and reimburse LINN for any and all reasonable Third Party out-of-pocket costs and expenses
without mark-up (including operating costs, capital expenditures, drilling and construction overhead charges, Third Party administrative overhead charges, joint interest billing, lease, lease operating, lease
rental, bonus and shut-in payment, royalty, overriding royalty, net profits interest expenses, and records and data transfer expenses) and reasonable and necessary travel expenses actually incurred by LINN to
the extent documented and incurred in connection with providing the Services during the Term (the “Reimbursement Expenses”); provided, however, that Reimbursement Expenses will not include Third Party contractors
engaged by LINN after the Effective Date to provide portions of the Services where such portions of the Services were performed by LINN employees prior to the Effective Date unless expressly agreed to in writing by the Parties. 

  
 23 

	 	(B)	Management Fee. In addition to the foregoing Reimbursement Expenses, Berry shall pay to LINN $6,000,000 per month (prorated for partial months) during the Transition Period (the “Full Management
Fee”) and $2,700,000 per month (prorated for partial months) during the Separation Period (the “Limited Management Fee” and together with the Full Management Fee, the “Management Fee”). The
Management Fee, together with the Reimbursement Expenses, are referred to collectively herein as the “Service Fees.” 

  

	 	5.3	Cash Call. 

  

	 	(A)	Cash Calls. It is not the intent of this Agreement for LINN to advance any of its own funds. If there are lease operating expenses or capital expenditures that would otherwise be paid by LINN pursuant to this
Agreement, LINN shall provide a written cash call (“Cash Call”) to Berry detailing the amount of such expenses, the proposed use thereof, and the date such funds are required, together with supporting documentation, for approval by
Berry in advance of LINN incurring the same. Berry shall, within five Business Days of receipt of such Cash Call, render a decision to provide such amount to LINN for payment (in whole or in part) or to decline such payment (in which event LINN will
be relieved of any obligation to conduct the associated activity). Berry reserves the right to approve any or all detail amounts included in any Cash Call. 

  

	 	(B)	Emergencies. Notwithstanding anything to the contrary in this Agreement, the Parties agree that in the event LINN reasonably believes there is an emergency involving actual or imminent loss of life, material
damage to any of the Berry Assets or the environment, or substantial and immediate financial loss, LINN shall advance its own funds for any expense or expenditure that LINN determines is necessary under the circumstances as a reasonable and prudent
operator to address such emergency (but only to the extent necessary to stabilize the situation and alleviate the imminent threat) without the need to make a Cash Call. If LINN takes any action pursuant to the immediately preceding sentence, then
LINN shall promptly (but within any event within 48 hours) notify Berry of the taking of such action and deliver an invoice to Berry reflecting (i) the expenditures already incurred by LINN to address such emergency and (ii) LINN’s
reasonable projection of expenditures to be incurred by LINN over the subsequent seven days to further address such emergency, and Berry shall promptly (and in no event later than 48 hours following receipt of such notice) reimburse and advance to
LINN all such expenditures set forth such invoice. 

  

	 	5.4	 Monthly Settlement Statement. On the date any amounts are to be transferred pursuant to
Section 5.5, LINN shall submit to Berry a “Monthly Settlement Statement” prepared substantially in the form of Exhibit C, calculating the Current Month Settlement, to the extent any such amount has
not previously been accounted for in a prior Current Month Settlement or under this Agreement or otherwise accounted for prior to the Effective Date between the Parties. The 

  
 24 

	 	
“Current Month Settlement” shall be calculated (without duplication) as follows in this Section 5.4: 

 

	 	(i)	the net revenue interest share of all revenues (less severance and production taxes allocable to Berry under this Agreement and paid by or on behalf of LINN) attributable to the sale of production from the Berry
Properties and received by LINN; 

  

	 	(ii)	less the working interest share of all direct operating expenses incurred by LINN for Berry’s account (exclusive of any expenses prepaid by Berry) (with respect to the
Non-Operated Berry Properties, such direct operating expenses shall include overhead charges based on the applicable COPAS accounting procedures); 

 

	 	(iii)	plus COPAS and administrative overhead credits received by LINN from other owners for the Operated Berry Properties (excluding Berry) for operations subsequent to the Effective Date; 

 

	 	(iv)	less the working interest share of all capital expenditures incurred by LINN for Berry’s account related to the Berry Properties for operations; 

 

	 	(v)	less the working interest share of all bonuses, lease rentals, shut-in payments, and other charges paid by LINN on behalf of Berry; 

 

	 	(vi)	less the Reimbursement Expenses as stipulated in paragraph (A) of Section 5.2; 

  

	 	(vii)	less the Management Fee as stipulated in paragraph (B) of Section 5.2; 

  

	 	(viii)	less any amounts due under Section 5.2 that remain unpaid; 

  

	 	(ix)	less the Operating Property Amount due under Section 3.5; 

  

	 	(x)	less any Berry Severance Fees due under Section 4.3; and 

  

	 	(xi)	plus or less, as applicable, such other amounts as may be agreed to by the Parties. 

 Other than
the Reimbursement Expenses, Management Fee and any Berry Severance Fees, Berry shall not be charged hereunder for any internal overhead, COPAS, non-billable charges of LINN allocated by LINN to any of the
Berry Properties, or COPAS overhead charges attributable to the Operated Berry Properties. 

  
 25 

	 	5.5	Transfer of Cash. On the 15th day of each calendar month during the Term and for the three calendar months following the end of the Term, (i) if the Current Month Settlement is a positive number, then LINN
shall pay to Berry via wire transfer into a Berry-owned account the Current Month Settlement and (ii) if the Current Month Settlement is a negative number, then Berry shall pay to LINN via wire transfer from a Berry-owned account into a LINN
owned account the Current Month Settlement. 

  

	 	5.6	Third Party Joint Interest Billings. During the Accounting Period, LINN shall provide to Berry monthly aged accounts receivable reports detailing any uncollected joint interest billings issued to Third Parties
for operations conducted on the Operated Berry Properties not otherwise accounted for prior to the Effective Date between the Parties. LINN shall use commercially reasonable efforts to collect all joint interest billings so billed. At the end of the
Accounting Period, Berry shall reimburse LINN for the then outstanding amount of joint billings attributable to operations on the Operated Berry Properties not otherwise accounted for prior to the Effective Date by the Parties (the
“Transition JIB Balance”). After Berry reimburses LINN, Berry shall have the right to retain all amounts it collects relative to the Transition JIB Balance, and LINN shall promptly remit to Berry any amounts received relative to the
Transition JIB Balance. For the avoidance of doubt nothing in this Section 5.6 is intended to, or does, require Berry to reimburse LINN for joint interest billings for which (i) LINN did not perform the associated
operations or (ii) Berry has already reimbursed LINN. 

  

	 	5.7	No Duplication of Payments to LINN. Notwithstanding anything contained herein to the contrary, in no event shall there be a duplication of payments to LINN under this Agreement for any matters, charges or costs
of any kind which are covered by, or related to, Reimbursement Expenses, the Management Fee, and/or Cash Calls. 

  

	 	5.8	 Final Settlement. On or before 60 days after the end of the Accounting Period, LINN will prepare and
deliver to Berry a settlement statement setting forth the cumulative amounts charged and credited under Section 5.4, the cumulative cash transfers under Section 5.5, and any other accounting
transfer that is required to be made under this Agreement, including but not limited to the transfer of Suspense Funds (the “Final Settlement Statement”). As soon as reasonably practicable but not later than the 30th day following receipt of Berry’s statement hereunder, Berry shall deliver to LINN a written report containing any changes that Berry proposes be made to such statement, if any. LINN may deliver
a written report to Berry during this same period reflecting any changes that LINN proposes to be made to such statement as a result of additional information received after the statement was prepared. The Parties shall undertake to agree on the
Final Settlement Statement no later than 120 days after the end of the Accounting Period. If the Parties are unable to reach an agreement at such time, then either Party may submit the remaining matters in dispute to an Independent Expert for
resolution pursuant to Section 8.3. Within ten days after the earlier of (a) the expiration of Berry’s 60-day review period without delivery of any written report or
(b) the date on which the Parties finally agree on the Final Settlement 

  
 26 

	 	
Statement or the Independent Expert resolves the disputed matters, as applicable, (x) if the net amount of all entries in the Final Settlement Statement shows a balance owed to Berry, then
LINN shall pay to Berry via wire transfer into a Berry-owned account such net amount due and (ii) if the net amount of all entries in the Final Settlement Statement shows a balance owed to LINN, then Berry shall pay to LINN via wire transfer
into a LINN-owned account such net amount due. 

  

	6.	Indemnification; Limitation and Exclusion of Damages. 

  

	 	6.1	Indemnity and Release by Berry. 

  

	 	(A)	Subject to Section 6.3 and Section 6.4, and the proviso to the last sentence of this Section 6.1(A), LINN shall have no liability to Berry for, and Berry hereby
releases, and shall indemnify, defend, and hold harmless, the LINN Indemnified Parties from, each and every Claim attributable to, or arising out of, any act or omission by LINN involving or related to the Services (or Berry’s use thereof),
including, but not limited to, LINN’s failure to pay or to collect sums due, erroneous or improper payment, late payment, preparation of erroneous payment statement, administration of the Suspense Funds (including any escheatment obligations
related thereto), or any other such cause, EVEN IF SUCH CLAIMS ARISE OUT OF THE NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF LINN OR THE LINN INDEMNIFIED PARTIES, except for any such Claim that may result from (and only to the extent it results
from) LINN’s gross negligence or willful misconduct. The foregoing release and indemnity shall expressly survive any expiration or termination of this Agreement and shall apply notwithstanding anything to the contrary contained in this
Agreement (including under this Article 6); provided, however, that Berry shall have no indemnity or defense obligations to the LINN Indemnified Parties (and shall not be deemed to have released the LINN Indemnified Parties) with
respect to any Claim for which LINN is required to indemnify or defend the Berry Indemnified Parties pursuant to Section 6.2. 

  

	 	(B)	 BERRY SPECIFICALLY AGREES TO FULLY DEFEND, INDEMNIFY AND HOLD HARMLESS ANY LINN INDEMNIFIED PARTY REGARDING ANY
CLAIMS ARISING FROM, OR IN CONNECTION WITH, BERRY’S OR ITS SUBCONTRACTORS’ EMPLOYEES’ ACTIVITIES ON OPERATED BERRY PROPERTIES OR LINN-OWNED PROPERTY, INCLUDING, BUT NOT LIMITED TO, ALL CLAIMS FOR BODILY INJURY, PERSONAL INJURY,
ILLNESS, OR DEATH BROUGHT BY BERRY’S OR BERRY’S SUBCONTRACTOR’S EMPLOYEES AGAINST ANY LINN INDEMNIFIED PARTY, SOLELY TO THE EXTENT SUCH CLAIM RESULTS FROM OR IS ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY OF
BERRY’S OR ITS SUBCONTRACTORS’ EMPLOYEES, EXCEPT FOR ANY 

  
 27 

	 	
SUCH CLAIM THAT MAY ARISE OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY LINN INDEMNIFIED PARTY. THIS PROVISION CONTROLS OVER ANY CONFLICTING PROVISION IN THIS AGREEMENT.

  

	 	6.2	Indemnity by LINN. 

  

	 	(A)	Subject to Section 6.3 and Section 6.4, LINN shall indemnify, defend, and hold harmless Berry and its Affiliates, and their respective directors, officers, employees,
agents, managers, shareholders and representatives (together with Berry, the “Berry Indemnified Parties”) from and against any and all Claims suffered by the Berry Indemnified Parties as a result of, caused by, or arising out of
(i) any breach of any covenant of LINN under this Agreement, or (ii) the sole, joint or concurrent negligence, gross negligence or willful misconduct of LINN or its Affiliate in its performance or failure to perform under this Agreement;
PROVIDED, HOWEVER, THAT LINN SHALL HAVE NO OBLIGATION TO INDEMNIFY THE BERRY INDEMNIFIED PARTIES UNDER THIS SECTION 6.2(A) WITH RESPECT TO ANY CLAIM ATTRIBUTABLE TO LINN’S PERFORMANCE OF ITS OBLIGATIONS UNDER SECTION
1.1 AND SECTION 1.10 UNLESS SUCH CLAIM IS A RESULT OF, IS CAUSED BY, OR ARISES OUT OF LINN’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 

  

	 	(B)	LINN SPECIFICALLY AGREES TO FULLY DEFEND, INDEMNIFY AND HOLD HARMLESS ANY BERRY INDEMNIFIED PARTY REGARDING ANY CLAIMS ARISING FROM, OR IN CONNECTION WITH, LINN’S OR ITS SUBCONTRACTOR’S EMPLOYEES’
ACTIVITIES RELATED TO THE BERRY ASSETS, INCLUDING, BUT NOT LIMITED TO, ALL CLAIMS FOR BODILY INJURY, PERSONAL INJURY, ILLNESS, OR DEATH BROUGHT BY LINN’S OR ITS SUBCONTRACTOR’S EMPLOYEES AGAINST ANY BERRY INDEMNIFIED PARTY, EXCEPT FOR ANY
SUCH CLAIM THAT MAY ARISE OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY BERRY INDEMNIFIED PARTY REGARDLESS OF WHETHER SUCH INJURY OR DEATH IS OR IS ALLEGED TO BE CAUSED BY THE SOLE, PARTIAL OR CONCURRENT NEGLIGENCE OR STRICT LIABILITY OF
SUCH BERRY INDEMNIFIED PARTY. THIS PROVISION CONTROLS OVER ANY CONFLICTING PROVISION IN THIS AGREEMENT. 

  

	 	6.3	Limitation of Liability. The total and cumulative liability of LINN arising out of, relating to, or in connection with, any performance or lack of performance of the Services, including for indemnification
obligations and damages pursuant to this Article 6 (whether a claim therefor is based on warranty, contract, tort (including negligence or strict liability), statute, or otherwise) shall not exceed the aggregate Service Fees paid to LINN by
Berry under this Agreement; provided, however, that this Section 6.3 shall not apply to any liability of LINN arising out of, relating to, or in connection with LINN’s gross negligence or willful
misconduct. 

  
 28 

	 	6.4	Exclusion of Certain Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH,
ANY PERFORMANCE OR LACK OF PERFORMANCE UNDER THIS AGREEMENT FOR INCIDENTAL, INDIRECT, PUNITIVE, EXEMPLARY, CONSEQUENTIAL, OR SPECIAL DAMAGES (INCLUDING DAMAGES FOR LOST PROFITS, LOSS OF USE, LOST REVENUE, LOST SAVINGS, LOSS OF DATA, OR LOSS BY
REASON OF COST OF CAPITAL), EVEN IF SUCH DAMAGES WERE FORESEEABLE OR THE PARTY SOUGHT TO BE HELD LIABLE WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND REGARDLESS OF WHETHER A CLAIM THEREFOR IS BASED ON CONTRACT, WARRANTY, TORT (INCLUDING
NEGLIGENCE OR STRICT LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLE, SAVE AND EXCEPT ANY SUCH DAMAGES PAYABLE WITH RESPECT TO THIRD PARTY CLAIMS. NOTWITHSTANDING ANYTHING IN THIS SECTION 6.4 TO THE CONTRARY, NEITHER PARTY’S
RECOVERY FOR LOST PROFITS, LOSS OF USE, LOST REVENUE, LOST SAVINGS, LOSS OF DATA, OR LOSS BY REASON OF COST OF CAPITAL SHALL BE LIMITED TO THE EXTENT CONSTITUTING DIRECT DAMAGES. EACH PARTY AGREES AND ACKNOWLEDGES THAT THE RISK ALLOCATION AND
LIMITATIONS OF LIABILITY SET FORTH IN THIS AGREEMENT ARE FUNDAMENTAL TO EACH PARTY’S BENEFIT OF THE BARGAIN UNDER THIS AGREEMENT. NEITHER PARTY SHALL ALLEGE THAT ANY REMEDY OR ANY PROVISION OF THIS AGREEMENT FAILS OF ITS ESSENTIAL PURPOSE AND
THE LIMITATIONS IN THIS ARTICLE 6 WILL APPLY NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY IN THIS AGREEMENT. 

  

	7.	 Insurance. In support of its indemnity obligations under this Agreement, but as a separate and independent
obligation, Berry shall obtain and maintain in force throughout the Term insurance coverage from insurance providers with A.M. Best ratings of A-, VII or better, in the amounts and types as further described
on Exhibit D. All deductibles shall be for the account of Berry and to the extent of the indemnities and liabilities contractually assumed by Berry under this Agreement, Berry shall cause the LINN Indemnified Parties to be added as insureds
with respect to all insurance policies (excluding Worker’s Compensation and Employer’s Liability). Berry shall further cause its insurers to waive, and Berry hereby does waive, any rights of subrogation or recovery against any LINN
Indemnified Parties; all such insurance required of Berry hereunder shall be primary coverage to any insurance maintained by any LINN Indemnified Parties. Berry, upon LINN’s request, shall provide certificates evidencing the insurance coverages
required under this Agreement. The obligations of Berry, with respect to the maintenance of insurance under this Agreement, are in support of, but separate and apart from, Berry’s indemnification obligations under this Agreement. To the extent
applicable, for the 

  
 29 

	 	
purposes of Title 6, Chapter 127 of the Texas Civil Practice and Remedies Code, commonly known as the Texas Oilfield Anti-Indemnity Act, the indemnity and insurance provisions of this Agreement
applicable to property damage and the indemnity and insurance provisions applicable to personal injury, bodily injury, and death shall be deemed separate for interpretation, enforcement, and other purposes. The Parties agree that in order to be in
compliance with the Texas Oilfield Anti-Indemnity Act regarding mutually assumed indemnification for the other Party’s sole or concurrent negligence, each Party shall carry supporting insurance in equal amounts of the types and in the minimum
amounts as specified in the insurance requirements hereunder. All indemnities in this Agreement shall only be effective to the maximum extent permitted by Applicable Law. The Parties hereby incorporate Title 6, Chapter 127 of the Texas Civil
Practice and Remedies Code as part of this Agreement and agree to the limits of that statute. If LINN does not carry insurance in the minimum amounts as specified in the insurance requirements in regard to mutual indemnity obligations, then it is
agreed that LINN has approved self-insurance as stated in the Texas Oilfield Anti-Indemnity Act and the mutual indemnification amount shall be the maximum amount carried by LINN. 

 

	8.	Arbitration. 

  

	 	8.1	General. Any and all claims, disputes, controversies or other matters in question arising out of or relating to an audit dispute under Section 2.8, a disagreement on the list of Berry
Operating Property under paragraph (B) of Section 3.5, calculation of the Monthly Settlement Statement under Section 5.4, or calculation of the Final Settlement Statement under
Section 5.8, or any amounts therein or revisions thereto (all of which are referred to herein as “Disputes,” which term shall not include any other claims, disputes, controversies or other matters in
question arising under this Agreement) shall be resolved in the manner prescribed by this Article 8. 

  

	 	8.2	Senior Management. If a Dispute occurs that the senior representatives of the Parties responsible for this Agreement have been unable to settle or agree upon within a period of 15 days after such Dispute arose,
then each Party shall nominate and commit one of its senior officers to meet at a mutually agreed time and place not later than 30 days after such Dispute arose to attempt to resolve same. If such senior management have been unable to resolve such
Dispute within a period of 15 days after such meeting, or if such meeting has not occurred within 45 days after such Dispute arose, then either Party to such Dispute shall have the right, by written notice to the other Party to such Dispute, to
resolve such Dispute through the relevant Independent Expert pursuant to Section 8.3. 

  

	 	8.3	Dispute Resolution by Independent Expert. 

  

	 	(A)	 Each Party shall have the right to submit each Dispute to an independent expert appointed in accordance with this
Section 8.3 (each, an “Independent Expert”), who shall serve as sole arbitrator. The Independent Expert shall be appointed by mutual agreement of the Parties from among candidates with experience and
expertise in the area that is 

  
 30 

	 	
the subject of such Dispute, and failing such agreement, such Independent Expert for such Dispute shall be selected in accordance with the rules of the Commercial Arbitration Rules and Mediation
Procedures (the “Rules”) of the AAA. 

  

	 	(B)	Each Dispute to be resolved by an Independent Expert shall be resolved in accordance with mutually agreed procedures and rules, including with regard to written discovery, depositions, summary judgment motions,
prehearing procedures, and date, time, location and length of the hearing, and failing such agreement, in accordance with the Rules to the extent such Rules do not conflict with the provisions of this Agreement. The Independent Expert shall be
instructed by the Parties to resolve such Dispute as soon as reasonably practicable in light of the circumstances, but in no case later than 30 days after conclusion of the arbitration hearing. The Independent Expert shall support the decision and
award with a reasoned, written opinion. The decision and award of the Independent Expert shall be binding upon the Parties as an award under the Federal Arbitration Act and final and non-appealable to the
maximum extent permitted by Applicable Law, and judgment thereon may be entered in a court of competent jurisdiction and enforced by any Party as a final judgment of such court. 

 

	 	(C)	The charges and expenses of the arbitrator shall be shared one-half by Berry and one-half by LINN. 

 

	8.4	Limitation on Arbitration. ALL OTHER DISAGREEMENTS, DIFFERENCES, OR DISPUTES ARISING BETWEEN THE PARTIES UNDER THE TERMS OF THIS AGREEMENT (AND NOT COVERED BY THE DEFINITION OF “DISPUTES” SET FORTH IN
SECTION 8.1) SHALL NOT BE SUBJECT TO ARBITRATION AND SHALL BE DETERMINED BY THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS UNLESS THE PARTIES OTHERWISE MUTUALLY AGREE. 

 

	9.	Miscellaneous. 

  

	 	9.1	Successors and Assigns. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective successors and assigns; provided, however, that this Agreement and
all rights and obligations hereunder cannot be assigned by either Party (by operation of law or otherwise) without the prior written consent of the other Party, such consent to be at such other Parties’ sole discretion. 

 

	 	9.2	 Entire Agreement. Except for and without limiting either Party’s rights under the Berry Consensual
Plan, this Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter of this Agreement (including the Services). Notwithstanding the foregoing, in the event of a conflict between the
provisions of this Agreement and the Berry Consensual 

  
 31 

	 	
Plan, the terms of the Berry Consensual Plan shall prevail. For the avoidance of doubt, the Agency Agreement and Power of Attorney dated March 5, 2014, executed by Berry and LOI has been
terminated and is of no further force or effect. 

  

	 	9.3	Amendment. This Agreement may be amended or modified only by written instrument executed by the authorized representatives of LINN and Berry, respectively. 

 

	 	9.4	Choice of Law. The provisions of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, without regard to the conflicts of laws principles thereof. Subject to
Article 8, each Party hereby irrevocably and unconditionally submits to the exclusive jurisdiction of the United States Bankruptcy Court for the Southern District of Texas over any suit, action, or proceeding arising out of or relating to
this Agreement. 

  

	 	9.5	No Recourse. All Claims that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement, may be made only against the Persons that are expressly
identified as Parties (i.e., LINN or Berry). No Person who is not a named party to this Agreement, including any past, present or future direct or indirect director, officer, employee, incorporator, member, manager, partner, equity holder,
Affiliate, agent, attorney or representative of any named Party to this Agreement (“Non-Party Affiliates”), shall have any liability (whether in contract or in tort or otherwise, or based upon
any theory that seeks to impose liability of an entity party against its owners or Affiliates) for any obligations or liabilities arising under, in connection with or related to this Agreement or for any claim based on, in respect of, or by reason
of this Agreement or its negotiation or execution, and each Party waives and releases all such liabilities, claims and obligations against any such Non-Party Affiliates.
Non-Party Affiliates are expressly intended as third-party beneficiaries of this provision of this Agreement. 

  

	 	9.6	Unenforceable Provisions. Any provision in this Agreement that might otherwise be invalid or unenforceable because of the contravention of any Applicable Law shall be deemed to be amended to the extent necessary
to remove the cause of such invalidation or unenforceability, and such provision, as amended, shall remain in full force and effect. 

  

	 	9.7	No Set-Off. Except as mutually agreed to in writing by LINN and Berry, neither Party shall have any right of set-off or other
similar rights with respect to (i) any amounts received pursuant to this Agreement or (ii) any other amounts claimed to be owed to the other Party arising out of this Agreement or any other agreement between the Parties. 

  
 32 

	 	9.8	Notices. 

  

	 	(A)	All notices, consents, waivers and other communications under this Agreement must be in writing and shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b)
sent by email (with read receipt requested, with the receiving Party being obligated to respond affirmatively to any read receipt requests delivered by the other Party), (c) received by the addressee, if sent by a delivery service (prepaid, receipt
requested) or (d) received by the addressee, if sent by registered or certified mail (postage prepaid, return receipt requested), in each case to the appropriate addresses and representatives (if applicable) set forth below, except as provided
in paragraph (B) of this Section 9.8, (or to such other addresses and representatives as a Party may designate by notice to the other Party): 

 

	 	(i)	If to LINN, then to: 

 Linn Operating, Inc. 

600 Travis Street 
 Houston,
Texas 77002 
 Attn: Arden Walker 

Phone: (281)840–4000 
 E-mail: awalker@linnenergy.com 
 with copies (which shall not constitute notice) to: 

Linn Operating, Inc. 
 600
Travis Street 
 Houston, Texas 77002 

Attn: General Counsel 
 Phone:
(281) 840-4000 
 E-mail:
    cwells@linnenergy.com 
 Kirkland & Ellis LLP 

600 Travis Street, Suite 3300 

Houston, Texas 77002 

Attn:    Anthony Speier, P.C.; David M. Castro, Jr. 

Phone: (713) 835-3607; (713) 835-3609 

E-mail: anthony.speier@kirkland.com 

             david.castro@kirkland.com 

  
 33 

	 	(ii)	If to Berry: 

 Berry Petroleum Company, LLC 

5201 Truxtun Avenue, Suite 100 

Bakersfield, California 93309 

Attn: Arthur T. Smith, Chief Executive Officer 

Phone: (214) 384-3966 

E-mail: tsmith@bry.com 

with a copy (which shall not constitute notice) to: 

Norton Rose Fulbright US LLP 

1301 McKinney, Suite 5100 

Houston, Texas 77010-3095 

Attn: John G. Mauel, Partner 

Phone: (713) 651-5173 

E-mail: john.mauel@nortonrosefulbright.com 

 

	 	(B)	Any notice required under Article 1 shall be delivered in the manner described by paragraph (A) of this Section 9.8 when delivered to: 

 

	 	(i)	If to LINN, then to: 

 Linn Operating, Inc. 

600 Travis Street 
 Houston,
Texas 77002 
 Attn: Jamin McNeil 

Phone: 281-840-4000 

E-mail: 281-840-4000

 with copies (which shall not constitute notice) to: 

Linn Operating, Inc. 
 600
Travis Street 
 Houston, Texas 77002 

Attn: General Counsel 
 Phone:
(281) 840-4000 

E-mail:    cwells@linnenergy.com 

 

	 	(ii)	If to Berry: 

 Berry Petroleum Company, LLC 

5201 Truxtun Avenue, Suite 100 

Bakersfield, California 93309 

Attn: Arthur T. Smith, Chief Executive Officer 

Phone: (214) 384-3966 

E-mail: tsmith@bry.com 

  
 34 

 with a copy (which shall not constitute notice) to: 

Norton Rose Fulbright US LLP 

1301 McKinney, Suite 5100 

Houston, Texas 77010-3095 

Attn: John G. Mauel, Partner 

Phone: (713) 651-5173 

E-mail: john.mauel@nortonrosefulbright.com 

 

	 	9.9	Independent Contractor. LINN shall act solely as independent contractors, and nothing herein shall at any time be construed to create the relationship of employer and employee, partnership, principal and agent,
broker or finder, or joint venturers as between Berry and LINN. Except as expressly provided herein, neither Party shall have any right or authority, and shall not attempt to enter into any contract, commitment, or agreement or to incur any debt or
liability of any nature, in the name of or on behalf of the other Party. 

  

	 	9.10	No Third Party Beneficiaries. Except as expressly provided herein, nothing in this Agreement shall entitle any Person other than the Parties, the LINN Indemnified Parties, and the Berry Indemnified Parties, or
their respective successors and assigns, to any claim, cause of action, remedy, or right of any kind under this Agreement. 

  

	 	9.11	Execution in Counterparts. This Agreement may be executed simultaneously in two or more counterparts (including by means of facsimile or email of a portable document format (pdf) of the signature pages), each of
which shall be deemed to be an original, but all of which taken together shall constitute one and the same instrument. 

  

	 	9.12	No Strict Construction. Berry and LINN participated jointly in the negotiation and drafting of this Agreement, and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as jointly drafted by Berry and LINN, and no presumption or burden of proof shall arise favoring or disfavoring either Party by virtue of the authorship of any provision of this Agreement. Without limitation as to the foregoing, no rule
of strict construction construing ambiguities against the draftsperson shall be applied against either Party with respect to this Agreement. 

  

	 	9.13	 Force Majeure. Continued performance of a portion of the Services may be suspended immediately to the
extent such performance is prevented by any event or condition beyond the reasonable control of LINN, including acts of God, fire, labor strike or trade disturbance, war, terrorism, civil commotion, inability to procure labor, unavailability of
equipment, compliance in good faith with any Applicable Law (whether or not it later proves to be invalid), or any other cause, whether of the kind specifically enumerated above or otherwise, which is not reasonably within the control of LINN (a
“Force Majeure Event”). Upon the occurrence of a Force Majeure Event, LINN shall (i) use all reasonable efforts to 

  
 35 

	 	
mitigate the effect of such Force Majeure Event, (ii) give notice to Berry of the occurrence of the Force Majeure Event giving rise to the suspension and of its nature and anticipated
duration, and (iii) during such Force Majeure Event, shall keep Berry reasonably advised of its efforts to overcome such Force Majeure Event. 

  

	 	9.14	Interpretation. Unless otherwise expressly provided in this Agreement, for purposes of this Agreement, the following rules of interpretation shall apply: 

 

	 	(i)	Calculation of Time Period. When calculating the period of time before which, within which, or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date
in calculating such period shall be excluded, and if the last day of such period is a day other than a Business Day, then the period in question shall end on the next succeeding Business Day; 

 

	 	(ii)	Dollars. Any reference in this Agreement to $ means United States dollars; 

  

	 	(iii)	Exhibits and Schedules. All Exhibits and Schedules attached or annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein, and any capitalized
terms used in any Exhibit or Schedule but not otherwise defined therein shall be defined as set forth in this Agreement; 

  

	 	(iv)	Gender and Number. Any reference in this Agreement to gender includes all genders, and words imparting the singular number only include the plural and vice versa; 

 

	 	(v)	Headings. The division of this Agreement into Articles, Sections, and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect or be utilized in the construction
or interpretation of this Agreement, and all references in this Agreement to any “Section” or “Article” are to the corresponding Section or Article of this Agreement unless otherwise specified; 

 

	 	(vi)	Herein. Words such as “herein,” “hereof,” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear, unless the context otherwise
requires; 

  

	 	(vii)	Including. The word “including” or any variation thereof means “including, without limitation,” and shall not be construed to limit any general statement that it follows to the specific or
similar items or matters immediately following it; and 

  
 36 

	 	(viii)	Statute. Unless otherwise specified, references to a statute means such statute as amended from time to time and includes any successor legislation thereto and any rules or regulations promulgated thereunder.

  

	 	9.15	Specific Performance. The Parties agree that irreparable damage would occur if any provision of this Agreement is not performed in accordance with the terms hereof, including if LINN fails to perform the Services
or to take any other action required of it hereunder, and that the Parties shall be entitled to an injunction or injunctions without proof of damages or posting a bond or other security to prevent breaches of this Agreement or to enforce
specifically the performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled under Applicable Law or in equity. Unless otherwise expressly stated in this Agreement, no right or remedy described or
provided in this Agreement is intended to be exclusive or to preclude a Party from pursuing other rights and remedies to the extent available under this Agreement, under Applicable Law or in equity. The right of specific performance and other
equitable relief is an integral part of the transactions contemplated by this Agreement and without that right, neither LINN nor Berry would have entered into this Agreement. 

 

	 	9.16	Confidentiality. The terms of this Agreement and any information obtained pursuant to this Agreement shall be kept confidential by the Parties, except (i) disclosure of matters that become a matter of public
record as a result of the bankruptcy case referenced in the Recitals and the filings related thereto, (ii) to the extent required by Applicable Law, (iii) to the extent that this Agreement is the subject of an action for enforcement of its
terms or for the breach thereof, or (iv) to the extent that disclosure of this Agreement is required by a court of law. In the event that disclosure as described in the preceding clause (iv) is sought, the Party from whom it is sought
shall immediately notify the other Party, and shall diligently pursue protection of the confidentiality of the information sought to be disclosed through objections to disclosure, motions for protective orders and other protections provided by rule
of Applicable Law. 

  

	 	9.17	Joint and Several Liability. Each of LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II shall be collectively responsible for, and shall have joint and several liability under this Agreement with respect to, the obligations of LINN under this
Agreement. 

  

	 	9.18	Expenses. Other than as expressly set forth in this Agreement, the Parties shall bear their own respective expenses (including all compensation and expenses of counsel, financial advisors, consultants, actuaries
and independent accountants) incurred in connection with this Agreement and the transactions contemplated hereby. 

[Signature Page Follows] 

  
 37 

 IN WITNESS WHEREOF, the undersigned representatives of each of the Parties has executed this
Agreement on the date first above written to be effective for all purposes as of the Effective Date. 
  

			
	Berry:
	
	BERRY PETROLEUM COMPANY, LLC
		
	By:	 	 /s/ Arthur T. Smith

	Name:	 	Arthur T. Smith
	Title:	 	Chief Executive Officer
	
	LINN:
	
	LINN OPERATING, INC.
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	LINN MIDSTREAM, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	LINN ENERGY, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	LINNCO, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer

  
 38 

 
			
	LINN ENERGY FINANCE CORP.
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	LINN EXPLORATION & PRODUCTION MICHIGAN LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	LINN EXPLORATION MIDCONTINENT, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	LINN MIDWEST ENERGY LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	MID-CONTINENT I, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	MID-CONTINENT II, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer

  
 39 

 
			
	MID-CONTINENT HOLDINGS I, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	MID-CONTINENT HOLDINGS II, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer
	
	LINN ENERGY HOLDINGS, LLC
		
	By:	 	 /s/ Arden L. Walker, Jr.

	Name:	 	Arden L. Walker, Jr.
	Title:	 	Executive Vice President and Chief Operating Officer

  
 40 

 Exhibit A 

DEFINITIONS 

“AAA” means the American Arbitration Association. 

“Access Period” shall have the meaning ascribed to it in Section 4.1. 

“Accounting Period” means the Transition Period (as the same may be extended pursuant to
Section 2.9) through the date that is the last day of the second full calendar month thereafter. 

“AFE” shall have the meaning ascribed to it in Section 1.2. 

“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, such specified Person. 
 “Agreement” shall
have the meaning ascribed to it in the Preamble. 
 “Applicable Law” means any applicable principle of common law, statute,
law, rule, regulation, ordinance, order, code, ruling, writ, injunction, decree or other official act of or by any Governmental Authority. 

“Assigned Operating Contract” shall have the meaning ascribed to it in paragraph (C) of
Section 3.2. 
 “Available Employee” means any employee listed on Schedule 6. 

“Berry” shall have the meaning ascribed to it in the Preamble. 

“Berry Assets” shall have the meaning ascribed to it in paragraph (B) of Section 3.1. 

“Berry Consensual Plan” shall have the meaning ascribed to it in the Recitals. 

“Berry Contracts” shall have the meaning ascribed to it in clause (v) of paragraph (C) of
Section 3.1. 
 “Berry Employee” means any employee designated as a “Berry Employee” on
Schedule 6. 
 “Berry Equipment” shall have the meaning ascribed to it in clause (ii) of paragraph (C) of
Section 3.1. 
 “Berry Estate” shall have the meaning given to the term “Berry Debtors’
Estate” in the LINN Consensual Plan. 

  
 Exhibit A, Page 1 

 “Berry Facilities” shall have the meaning ascribed to it in clause (iv) of
paragraph (B) of Section 3.1. 
 “Berry G&G Data” shall have the meaning ascribed to it
in clause (vi) of paragraph (C) of Section 3.1. 
 “Berry Indemnified Parties” shall
have the meaning ascribed to it in paragraph (A) of Section 6.2. 
 “Berry Leasehold and Mineral
Interests” shall have the meaning ascribed to it in clause (i) of paragraph (B) of Section 3.1. 

“Berry-LINN Employee” means any employee designated as a “Berry-LINN Employee” on Schedule 6. 

“Berry Operating Contracts” shall have the meaning ascribed to it in paragraph (A) of
Section 3.2. 
 “Berry Operating Equipment” shall have the meaning ascribed to it in paragraph
(A) of Section 3.5. 
 “Berry Operating Property” shall have the meaning ascribed to it in
paragraph (A) of Section 3.5. 
 “Berry Operating Yard Equipment” shall have the meaning
ascribed to it in paragraph (A) of Section 3.5. 
 “Berry Permits” shall have the meaning
ascribed to it in clause (iv) of paragraph (C) of Section 3.1. 
 “Berry Properties”
shall have the meaning ascribed to it in clause (ii) of paragraph (B) of Section 3.1. 
 “Berry
Receivables” means all expenditures incurred by Berry (or LINN or its Affiliate on behalf of Berry) in connection with the ownership, operation and maintenance of the Berry Properties (including rentals, overhead, royalties, Lease option
and extension payments, Taxes and other charges and expenses billed under applicable operating agreements or governmental statute(s)) and billed by Berry (or LINN or its Affiliate on behalf of Berry) to Third Party working interest owners, which
remain outstanding and owed to Berry (or LINN or its Affiliate on behalf of Berry); 
 “Berry Records” shall have the
meaning ascribed to it in clause (ix) of paragraph C of Section 3.1. 
 “Berry Related Assets
shall have the meaning ascribed to it in paragraph C of Section 3.1. 
 “Berry Severance Fees”
shall have the meaning ascribed to it in Section 4.3. 

  
 Exhibit A, Page 2 

 “Berry Shared Contracts” shall have the meaning ascribed to it in paragraph
(A) of Section 3.2. 
 “Berry Software” shall have the meaning ascribed to it in clause
(xii) of paragraph (C) of Section 3.1. 
 “Berry Statement of Assets and Liabilities”
shall have the meaning ascribed to it in the Recitals. 
 “Berry Wells” shall have the meaning ascribed to it in clause
(ii) of paragraph (B) of Section 3.1. 
 “Business Day” means any day, other than
Saturday or Sunday, on which commercial banks are open for commercial business with the public in the state(s) in which the Berry Assets are located and Houston, Texas. 

“Cash Call” shall have the meaning ascribed to it in paragraph (A) of Section 5.3. 

“Change of Operator Forms” shall have the meaning ascribed to it in clause (i) of Section 3.3.

 “Claim” means any claim, demand, liability, suit, cause of action (whether in contract, tort otherwise), loss, cost, and
expense of every kind and character. 
 “Contract” means any agreement, contract, obligation, promise or undertaking (other
than a Lease or other instrument creating or evidencing an interest in the Berry Properties) related to or used in connection with the operations of any Berry Properties that is legally binding. 

“Control” means the ability (directly or indirectly through one or more intermediaries) to direct or cause the direction of
the management or affairs of a Person, whether through the ownership of voting interests, by contract or otherwise. 

“COPAS” shall mean the Council of Petroleum Accountants Societies, Inc. 

“Current Month Settlement” shall have the meaning ascribed to it in Section 5.4. 

“Dispute” shall have the meaning ascribed to it in Section 8.1. 

“Effective Date” shall have the meaning ascribed to it in the Berry Consensual Plan. 

“Excluded LINN Records and Data” means (a) the general corporate files and records of LINN and its non-Berry Affiliates, insofar as they relate to the business of LINN or its non-Berry Affiliate generally and are not required for the future ownership or operation of the
Berry Assets; (b) all legal files and records (other than title opinions) other than legal files directly related to Claims associated with Berry or the Berry Assets; (c) federal or state income, franchise or margin tax files and records
of LINN or its non-Berry Affiliates; (d) employee files (other than any employee files for Available Employees hired by Berry pursuant to Article 4 that may

  
 Exhibit A, Page 3 

 
be transferred to Berry without violating Applicable Law); (e) reserve evaluation information or economic projections other than those related specifically to the Berry Assets; (f) records
relating to the sale of the Berry Assets, including competing bids (g) proprietary data, information and data under contractual restrictions on assignment or disclosure for which no consent has been given; (h) privileged information (other
than title opinions) and (i) any other files or records to the extent relating solely to any property or activities of LINN or its non-Berry affiliates. 

“Final Settlement Statement” shall have the meaning ascribed to it in Section 5.8. 

“Force Majeure Event” shall have the meaning ascribed to it in Section 9.13. 

“Full Management Fee” shall have the meaning ascribed to it in paragraph (B) of Section 5.2.

 “Governmental Authority” means any court or tribunal (including an arbitrator or arbitral panel) in any jurisdiction
(domestic or foreign) or any federal, tribal, state, county, municipal or other governmental or quasi-governmental body, agency, authority, department, board, commission, bureau, official or other authority or instrumentality. 

“Hill Field Offices” shall have the meaning ascribed to it in clause (i) of paragraph (C) of
Section 3.1. 
 “Hugoton Field Offices” means the real property described on Schedule 11
and all field offices located thereon. 
 “Hydrocarbons” means oil, gas, minerals, and other gaseous and liquid
hydrocarbons, or any combination of the foregoing, produced from and attributable to the Berry Properties. 
 “Independent
Expert” shall have the meaning ascribed to it in paragraph (A) of Section 8.3. 

“Lease” means any oil and gas lease, oil, gas and mineral lease or sublease, or other leasehold interest, and the leasehold
estates created thereby, including carried interests, rights of recoupment, options, reversionary interests, convertible interests and rights to reassignment. 

“Leasehold Interest” means, with respect to a Lease, a working or other interest in and to such Lease. 

“LC” shall have the meaning ascribed to it in the Preamble. 

“LEF” shall have the meaning ascribed to it in the Preamble. 

“LEH” shall have the meaning ascribed to it in the Preamble. 

“LEM” shall have the meaning ascribed to it in the Preamble. 

“LE&PM” shall have the meaning ascribed to it in the Preamble. 

“Letters in Lieu” shall have the meaning ascribed to it in clause (ii) of Section 3.3. 

  
 Exhibit A, Page 4 

 “Liabilities” means any and all claims, rights, demands, causes of action,
liabilities, obligations, damages, losses, fines, penalties, sanctions of every kind and character (including reasonable fees and expenses of attorneys, technical experts and expert witnesses), judgments or proceedings of any kind or character
whatsoever, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, and whether arising or founded in Applicable Law or voluntary settlement, and all
reasonable expenses, costs and fees (including reasonable attorneys’ fees) in connection therewith. 
 “Limited Management
Fee” shall have the meaning ascribed to it in paragraph (B) of Section 5.2. 

“LINN” shall have the meaning ascribed to it in the Preamble. 

“LINN Consensual Plan” shall have the meaning ascribed to it in the Recitals. 

“LINN Estate” shall have the meaning given to the term “Linn Debtors’ Estate” in the LINN Consensual Plan.

 “Linn Energy” shall have the meaning ascribed to it in the Preamble. 

“LINN Indemnified Parties” shall mean LINN and its Affiliates, and its and their equity holders, directors, officers,
employees, consultants, accountants, counsel, advisors, and agents. 
 “LM” shall have the meaning ascribed to it in the
Preamble. 
 “LME” shall have the meaning ascribed to it in the Preamble. 

“LOI” shall have the meaning ascribed to it in the Preamble. 

“Management Fee” shall have the meaning ascribed to it in paragraph (B) of Section 5.2. 

“MC-I” shall have the meaning ascribed to it in the Preamble. 

“MC-II” shall have the meaning ascribed to it in the Preamble. 

“MCH-I” shall have the meaning ascribed to it in the Preamble. 

“MCH-II” shall have the meaning ascribed to it in the Preamble. 

“Mineral Interest” means any mineral fee interest, mineral right or mineral servitude, including non-participating royalty interests and other rights of a similar nature, whether legal or equitable, whether vested or contingent. 

“Mirrored Licenses” shall have the meaning ascribed to it in paragraph (B) of Section 1.13.

 “Monthly Settlement Statement” shall have the meaning ascribed to it in Section 5.4. 

  
 Exhibit A, Page 5 

 “Monthly Statement” shall have the meaning ascribed to it in
Section 1.11. 
 “New Production Environment” shall have the meaning ascribed to it in Section
1.13(B) of Exhibit B. 
 “Non-Operated Berry Properties” shall mean the
portion of the Berry Properties currently operated by a Third Party or operated by LINN as an agent for a Person other than Berry, as so identified on Schedule 1 and Schedule 2 (which
Non-Operated Berry Properties include the Hugoton properties and do not include the Hill properties). 

“Non-Party Affiliate” shall have the meaning ascribed to it in
Section 9.5. 
 “Offer Period” shall have the meaning ascribed to it in
Section 4.2. 
 “Operated Berry Properties” shall mean that portion of the Berry Properties
currently operated by LINN as agent for Berry, as so identified on Schedule 1 and Schedule 2 (which Operated Berry Properties include the Hill properties and do not include the Hugoton properties). 

“Operating Property Amount” shall have the meaning ascribed to it in paragraph (C) of
Section 3.5. 
 “Party” or “Parties” shall have the meaning ascribed to it in
the Preamble. 
 “Person” means any individual, corporation (including any
non-profit corporation), partnership, limited liability company, joint venture, estate, trust, association, organization or other entity or Governmental Authority. 

“Reference Period” shall have the meaning ascribed to it in Section 1. 

“Reimbursement Expenses” shall have the meaning ascribed to it in paragraph (A) of
Section 5.2. 
 “Representatives” shall mean LINN’s existing personnel, including its
current employees, contractors, attorneys, agents, representatives, and consultants. 
 “Rules” shall have the meaning
ascribed to it in paragraph (A) of Section 8.3. 
 “Separation Period” means the period
between the first day following the Transition Period (as the same may be extended pursuant to Section 2.9) and the end of the Accounting Period. 

“Service Fees” shall have the meaning ascribed to it in paragraph (B) of Section 5.2. 

“Services” shall have the meaning ascribed to it in Section 1. 

“Surface Rights” means all surface leases, subsurface leases,
rights-of-way, licenses, easements and other surface or subsurface rights agreements applicable to, used, or held in connection with the ownership, operation,
maintenance or repair of, or the production, gathering, treatment, processing, storing, sale or disposal of Hydrocarbons or produced water from, the Berry Properties, together with all surface fee interests in the lands covered by the Berry
Leasehold and Mineral Interests. 

  
 Exhibit A, Page 6 

 “Suspense Funds” means proceeds of production and associated penalties and
interest in respect of any of the Operated Berry Properties that are payable to Third Parties and are being held in suspense by LINN as the operator of such Operated Berry Properties. 

“Term” shall have the meaning ascribed to it in paragraph (A) of Section 5.1. 

“Third Party” means any Person other than Berry or LINN or any of their Affiliates. 

“Transferred Hardware” means the equipment described on Schedule 8, unless Berry notifies LINN in writing within 30
days after the Effective Date that Berry does not want one or more items on Schedule 8 to be included as Transferred Hardware. 

“Transition JIB Balance” shall have the meaning ascribed to it in Section 5.6. 

“Transition Period” means the period from the Effective Date through the date that is the last day of the second full
calendar month after the Effective Date (as the same may be extended pursuant to Section 2.9). 

“Vehicles” shall have the meaning ascribed to it in clause (xiv) of paragraph (C) of
Section 3.1. 

  
 Exhibit A, Page 7 

 Exhibit B 

SERVICES 
  

					
	 #
	    	 Service
	  	
General Description

	1.1	    	Operator Services	  	 •  Manage and oversee day-to-day operation of the Operated Berry Properties, including operation and management of existing wells, structures, equipment, and facilities

 
 •  Supervise personnel,
subcontractors, suppliers, vendors, etc.
  

•  Monitor production and prepare and submit any necessary forms or reports as required by regulatory
agencies
  
 •  Dispose of all
salt water and waste materials
  

•  Perform field operations
  

•  Account for and disburse production (limited to the production of Hydrocarbons from the Berry
Assets prior to the end of the Transition Period)
  

•  Administer the Suspense Funds; provided, however, that Berry will assume the
Suspense Funds (including any escheatment obligations related thereto) as of the first day following the Transition Period; provided, however, further, that prior to the end of the Transition Period, LINN will provide, or cause
to be provided, any and all documentation in LINN’s possession necessary for Berry to administer the Suspense Funds following the end of the Transition Period
  

	1.2	    	Non-Operator Services	  	 •  Monitor operation of the Non-Operated
Berry Properties
  
 •  Collect
revenues on behalf of Berry
  

•  Review operating expense statements; request additional information from, and address any concerns
with, the Third Party operators (if necessary); and pay applicable operating expenses
  

•  Process non-operated joint interest billing invoices

 

	1.3	    	Permits	  	 •  Maintain all Permits

 
 •  Take reasonable action
necessary to transfer or assign all Berry Permits held in the name of LINN, contingent upon Berry’s obligations described in Sections 1.3 and paragraph (A) of
3.4)

  
 Exhibit B, Page 1 

					
	 #
	    	 Service
	  	
General Description

	 1.4
	    	Transportation and Marketing	  	 •  Manage (or, if applicable, oversee provision by a Third Party approved by Berry
of) midstream services, transportation and marketing services, gas control services, and other similar services to physically and financially sell the production from the Operated Berry Properties

 

	 1.5
	    	Well Maintenance	  	 •  Provide supervision for all workover operations, recompletion operations, and
any type of remedial operation or well service operation with respect to the Operated Berry Properties
  

•  Contract with supervisory personnel for onsite supervision as required (but in no event will LINN
be required to add contract onsite supervision above the level of supervision currently provided)
  

•  Establish and maintain well files containing information on operations performed in connection
with each such well
  

	 1.6
	    	Payment Services	  	 •  Pay lease rentals, shut-in royalties,
minimum royalties, payments in lieu of production, royalties, overriding royalties, production payments, net profit payments, and other similar payments associated with the Operated Berry Properties; provided, however, that, in the
case of payments related to production from the Operated Berry Properties other than shut-in payments during the Term, these obligations shall be limited to payment obligations arising from production from the
Operated Berry Properties prior to the end of the Transition Period
  

•  Pay operating costs and invoices that are required to be paid under the terms and provisions of
the applicable agreements and which are attributable to the ownership, operation, use, or maintenance of the Berry Properties
  

	1.7	    	Lease and Land Administration	  	 •  Provide all land, land administration, lease, and title services with respect to
the Berry Properties, in each case in the ordinary course of LINN’s business and in no case requiring additional services beyond those currently performed by LINN, including:

 
 •  Administer all leases and
agreements relating to the Berry Properties
  

•  Maintain and update all lease, ownership, contract and property records and databases relating to
the Berry Properties through changes received at the end of the second calendar month following the Effective Date to the extent practicable

  
 Exhibit B, Page 2 

					
	 #
	    	 Service
	  	
General Description

		    		  	  
 •  Generate,
verify, process, approve and sign (provided that Berry has provided LINN a special power of attorney authorizing LINN to sign on Berry’s behalf) all internal and external division orders and transfer orders required in the normal course
of business
  
 •  Identify, pay
and appropriately invoice all rentals, surface, right of way, shut-in and other similar payments required by the leases or other agreements relating to the Berry Properties

 
 •  Maintain all land, contract,
division of interest, lease files, and other files relating to the subject lands, lease and land administration functions
  

•  Maintain and update all royalty and suspense accounts, reports and databases

 
 •  Perform such other reasonable
and customary administrative services as LINN administers or causes to be administered to maintain the leases or agreements relating to the Berry Properties in the ordinary course of its business

 

	1.8	    	Regulatory Affairs	  	 •  Provide services to comply with all regulatory requirements applicable to the
Berry Properties
  
 •  Prepare
all federal, state, regulatory and other monthly production reports related to production of Hydrocarbons from the Berry Properties prior to the end of the Transition Period; copies of said reports will be provided to Berry

 
 •  Maintain incident management
reporting processes in LINN’s ordinary course of business and maintain all existing safety practices, which could include all or any of the following: internal reports, OSHA filings, safety standard operating procedures (SOPs), emergency
response protocols, chemical exposure and hearing testing, drug and alcohol programs, incident follow-up and other activities to provide health and safety training; provided, however, that
nothing herein will require LINN to adopt new practices or change its existing practices

  
 Exhibit B, Page 3 

					
	 #
	    	 Service
	  	
General Description

	1.9	    	Plugging and Abandonment	  	 •  Obtain necessary non-operated working
interest owner approval and regulatory permits to abandon any wells included in the Operated Berry Properties when required by applicable law to be abandoned during the Transition Period

 
 •  Provide supervision for
abandonment operations and file all necessary abandonment reports after the completion of the abandonment operations
  

	1.10	    	Environmental Compliance	  	 •  If LINN discovers instances of
non-compliance with environmental, health, or safety laws, rules, or regulations, notify Berry of such non-compliance

 
 •  [insert any reviews, audits
or other queries required to be undertaken during the Transition Period as referenced in Section 1.10]

	1.11	    	Bookkeeping; Finance and Treasury; Accounting	  	 •  Assist with internal reporting, management of general ledger functions, asset
and real property accounting, treasury and financial management services, maintenance of capital expenditure, and other operating budgets for production from the Berry Properties prior to the conclusion of Transition Period

 
 •  Monthly net lease operating
statement reporting, including reasonable volume, pricing, revenue, and expense supporting detail on the 15th day after each month end during the Accounting Period
  

•  Production and regulatory reporting related to the Berry Properties (limited to reporting related
to the Berry Properties or production from the Berry Properties prior to the conclusion of the Transition Period)
  

•  Prepare joint interest accounting and billings associated with the Berry Properties for periods
prior to the end of the Transition Period
  

•  Perform AFE tracking and status reporting relating to the Berry Properties during the Transition
Period
  
 •  Perform gas
balancing relating to the Berry Properties for periods and related to production prior to the end of the Transition Period
  

•  Perform working interest and royalty owner disbursements for production from the Berry Properties
prior to the end of the Transition Period
  

•  Provide collection of accounts receivable associated with the Berry Properties relative only to
periods and production prior to the end of the Transition Period

  
 Exhibit B, Page 4 

					
	 #
	    	 Service
	  	 General Description

		    		  	  
 •  Provide any
reports currently prepared in the ordinary course of LINN’s business related to the Berry Properties that are practicably segregated to the Berry Properties in generally the same manner and timing as currently prepared by LINN; provided
that in the case of reports related to payments for production of hydrocarbons, such reports will be limited to production from the Berry Properties prior to the end of the Transition Period

 
 •  Calculate, file, and remit
severances taxes associated with the production from the Berry Properties prior to the end of the Transition Period
  

•  Provide production accounting services associated with the Berry Properties for production from
the Berry Properties prior to the end of the Transition Period
  

•  Provide revenue accounting services related to the Berry Properties for production from the Berry
Properties prior to the end of the Transition Period
  

•  Provide audit function support services associated with the Berry Properties related to periods or
production prior to the end of the Transition Period, limited to responsive audits and excluding any audit initiated by Berry
  

•  Process joint interest billings associated with the
Non-Operated Berry Properties related to periods prior to the end of the Transition Period
  

•  Provide payout accounting services associated with the Berry Properties related to periods prior
to the end of the Transition Period
  

	1.12	    	 Real Estate;
 Facilities
	  	 •  Manage all real estate and facilities that are part of the Berry Estate in
connection with the operation of the Berry Properties

  
 Exhibit B, Page 5 

					
	 #
	    	 Service
	  	 General Description

	1.13(A)
 Part
One
	    	 Information Technology Systems – Standard Term Support During Transition Period

 
	  	 •  Provide IT-related infrastructure
(hardware, software, network, security, etc.), technical expertise, and services necessary to maintain the operations of the Berry Properties
  

•  Provide consultation regarding the migration to Berry’s information systems in respect to
operation of the Berry Properties
  

	1.13(A)
 Part
Two
	    	 Information Technology Systems – Standard Term Support During Accounting Period

 
	  	 •  Provide IT data from LINN systems in their native or export format

 
 •  Provide continuing e-mail services for LINN employees performing Services under this Agreement
  

•  Provide extraction of Berry Asset related application data and transmittal of this data to Berry
in their native or export format
  

	1.13(B)	    	 Information Technology Systems – Optional Additional Support

 
	  	 •  Create a copy of the database(s) in existing Transferred Hardware environment,
specifically related to P2 and field view (the “New Production Environment”)
  

•  Provide limited access to no more than [three] of Berry’s personnel to the New Production
Environment for the limited purposes of (i) configuring the New Production Environment, (ii) loading Berry Asset related data provided by LINN under Section 1.13(A) of this Exhibit B to the New Production Environment, and
(iii) creating user security permissions for New Production Environment
  

	1.14	    	Tax	  	 •  Assist with, and maintain proper documentation for, the collection and
remittance of federal, state, and local sales, use, and ad valorem taxes
  

•  Prepare and distribute 1099 forms for owners for all activity for the time period LINN is
responsible for the related distributions and disbursements
  

	1.15	    	 Corporate Contracts
  
	  	 •  Perform, administer, and maintain existing contractual arrangements with
respect to the Berry Assets and the Services performed hereunder

  
 Exhibit B, Page 6 

					
	 #
	    	 Service
	  	 General Description

	1.16	    	Records Retention	  	 •  Provide necessary assistance in the storage and retrieval of documentation and
backup information to the extent related to the Berry Assets and the Services performed hereunder
  

•  Provide, upon request from Berry, any portion of Records not already provided, including but not
limited to financial information from prior periods (to the extent such information requested exists in LINN’s financial reporting system and to the extent such information is included within the definition of Records)

 
 •  Provide other types of
historical data to Berry as reasonably needed in connection with Berry’s audit and tax compliance activities, government reporting, or other Third Party inquiries

 

	1.17	    	Transition	  	 •  Cooperate and assist in transition to Berry of Services provided by LINN under
this Agreement
  
 •  Provide
data and information (e.g., accounting, division of interest, land data, production data, etc.) utilized by LINN in connection with this Agreement
  

•  Provide the information that is available to LINN for Berry to begin revenue distribution, joint
interest billings, and payment of capital and operating expenses, taxes, shut-in payments, etc., in each case to the extent related to the Berry Properties

 

	1.18	    	HR; Employee Benefits; Payroll	  	 •  Continue to perform administration and management of human resources, employee
benefits programs, and payroll services and function for LINN’s employees and independent contractors
  

•  Comply with workers compensation laws and carry and maintain other customary
insurance

  
 Exhibit B, Page 7 

 Exhibit C 

FORM OF SETTLEMENT STATEMENT 

FOR THE PERIOD (MONTHLY DURING TRANSITION PERIOD) 
  

					
	 CALCULATION OF CASH TRANSFERRED:
	  			
	 Net revenues (as per paragraph (i) of Section 5.4)
	  	$	XXX	 
	 less direct operating expenses (as per paragraph (ii) of
Section 5.4)
	  	 	XXX	 
	 plus COPAS recoveries (as per paragraph (iii) of
Section 5.4)
	  	 	XXX	 
	 less capital expenditures (as per paragraph (iv) of
Section 5.4)
	  	 	XXX	 
	 less bonus, lease rentals, shut-in payments, and
other charges (as per paragraph (v) of Section 5.4)
	  	 	XXX	 
	 less Reimbursement Expenses (as per paragraph (A) of
Section 5.2)
	  	 	XXX	 
	 less Management Fee (as per paragraph (B) of
Section 5.2)
	  	 	XXX	 
	 less unpaid amounts due under Section 5.2 (as per paragraph
(viii) of Section 5.4)
	  	 	XXX	 
	 less Berry Severance Fee(as per Section 4.3)
	  	 	XXX	 
	 plus or less Other (itemized) (as per paragraph (xi) of
Section 5.4)
	  	 	XXX	 
		  	  
	  
	 
	 CURRENT MONTH SETTLEMENT
	  	$	XXX	 

  
 Exhibit C, Page 1 

 Exhibit D 

BERRY INSURANCE COVERAGE 

[EXHIBIT FOLLOWS] 

  
 Exhibit D, Page 1 

 Exhibit E 

MIRRORED LICENSES 

[EXHIBIT FOLLOWS] 

  
 Exhibit E, Page 1 

 Exhibit F 

BILL OF SALE 
 [EXHIBIT
FOLLOWS] 

  
 Exhibit F, Page 1 

 Exhibit G 

SPECIAL WARRANTY DEED 

[EXHIBIT FOLLOWS] 

  
 Exhibit G, Page 1EX-10.8

 Exhibit 10.8 

A.A.P.L. FORM 610 - 1989 

MODEL FORM OPERATING AGREEMENT 

OPERATING AGREEMENT 
 DATED 

 

							
		 	February 28,	  	2017,	  	
		 		  	year	  	

  

			
	OPERATOR	 	 Linn Operating, Inc.

		
	CONTRACT AREA	 	 Hugoton (See Exhibit “A”
hereto)

	 	 	 
	 	 	 
	 	 	 
	 	 	 
		
	COUNTY OR PARISH OF	 	                        ,             
                                    STATE OF   
              Kansas               
                                     

     COPYRIGHT 1989 – ALL RIGHTS RESERVED AMERICAN ASSOCIATION OF
PETROLEUM LANDMEN, 4100 FOSSIL CREEK BLVD. FORT WORTH, TEXAS, 76137, APPROVED FORM. 
 A.A.P.L. NO. 610 – 1989

 TABLE OF CONTENTS 

 

							
	Article	 	Title	  	Page	 
	I.	 	DEFINITIONS	  	 	1	 
	II.	 	EXHIBITS	  	 	1	 
	III.	 	INTERESTS OF PARTIES	  	 	2	 
		 	A. OIL AND GAS INTERESTS: 	  	 	2 	 
		 	B. INTERESTS OF PARTIES IN COSTS AND PRODUCTION:	  	 	2	 
		 	C. SUBSEQUENTLY CREATED INTERESTS:	  	 	2	 
	IV.	 	TITLES	  	 	2	 
		 	A. TITLE EXAMINATION:	  	 	2	 
		 	B. LOSS OR FAILURE OF TITLE:	  	 	3	 
		 	 1. Failure of Title
	  	 	3 	 
		 	 2. Loss by Non-Payment or Erroneous Payment of Amount Due 
	  	 	3 	 
		 	 3. Other Losses
	  	 	3	 
		 	 4. Curing Title 
	  	 	3 	 
	V.	 	OPERATOR	  	 	4	 
		 	A. DESIGNATION AND RESPONSIBILITIES OF OPERATOR:	  	 	4	 
		 	B. RESIGNATION OR REMOVAL OF OPERATOR AND SELECTION OF SUCCESSOR:	  	 	4	 
		 	 1. Resignation or Removal of Operator
	  	 	4	 
		 	 2. Selection of Successor Operator
	  	 	4	 
		 	 3. Effect of Bankruptcy
	  	 	4	 
		 	C. EMPLOYEES AND CONTRACTORS:	  	 	4	 
		 	D. RIGHTS AND DUTIES OF OPERATOR:	  	 	4	 
		 	 1. Competitive Rates and Use of Affiliates
	  	 	4	 
		 	 2. Discharge of Joint Account Obligations
	  	 	4	 
		 	 3. Protection from Liens
	  	 	4	 
		 	 4. Custody of Funds
	  	 	5	 
		 	 5. Access to Contract Area and Records
	  	 	5	 
		 	 6. Filing and Furnishing Governmental Reports
	  	 	5	 
		 	 7. Drilling and Testing Operations
	  	 	5	 
		 	 8. Cost Estimates
	  	 	5	 
		 	 9. Insurance
	  	 	5	 
	VI.	 	DRILLING AND DEVELOPMENT	  	 	5	 
		 	A. INITIAL WELL: 	  	 	5 	 
		 	B. SUBSEQUENT OPERATIONS:	  	 	5	 
		 	 1. Proposed Operations
	  	 	5	 
		 	 2. Operations by Less Than All Parties
	  	 	6	 
		 	 3. Stand-By Costs
	  	 	7	 
		 	 4. Deepening
	  	 	8	 
		 	 5. Sidetracking
	  	 	8	 
		 	 6. Order of Preference of Operations
	  	 	8	 
		 	 7. Conformity to Spacing Pattern
	  	 	9	 
		 	 8. Paying Wells
	  	 	9	 
		 	C. COMPLETION OF WELLS; REWORKING AND PLUGGING BACK:	  	 	9	 
		 	 1. Completion
	  	 	9	 
		 	 2. Rework, Recomplete or Plug Back
	  	 	9	 
		 	D. OTHER OPERATIONS:	  	 	9	 
		 	E. ABANDONMENT OF WELLS:	  	 	9	 
		 	 1. Abandonment of Dry Holes
	  	 	9	 
		 	 2. Abandonment of Wells That Have Produced
	  	 	10	 
		 	 3. Abandonment of Non-Consent Operations
	  	 	10	 
		 	F. TERMINATION OF OPERATIONS:	  	 	10	 
		 	G. TAKING PRODUCTION IN KIND:	  	 	11	 
		 	 (Option 1) Gas Balancing Agreement
	  	 	11	 
		 	 (Option 2) No Gas Balancing Agreement 
	  	 	12	 
	VII.	 	EXPENDITURES AND LIABILITY OF PARTIES	  	 	12	 
		 	A. LIABILITY OF PARTIES:	  	 	12	 
		 	B. LIENS AND SECURITY INTERESTS:	  	 	13	 
		 	C. ADVANCES:	  	 	13	 
		 	D. DEFAULTS AND REMEDIES:	  	 	13	 
		 	 1. Suspension of Rights
	  	 	14	 
		 	 2. Suit for Damages
	  	 	14	 
		 	 3. Deemed Non-Consent
	  	 	14	 
		 	 4. Advance Payment
	  	 	14	 
		 	 5. Costs and Attorneys’ Fees
	  	 	14	 
		 	E. RENTALS, SHUT-IN WELL PAYMENTS AND MINIMUM ROYALTIES:	  	 	14	 
		 	F. TAXES:	  	 	14	 
	VIII.	 	ACQUISITION, MAINTENANCE OR TRANSFER OF INTEREST	  	 	15	 
		 	A. SURRENDER OF LEASES:	  	 	15	 
		 	B. RENEWAL OR EXTENSION OF LEASES:	  	 	15	 
		 	C. ACREAGE OR CASH CONTRIBUTIONS:	  	 	15	 

  
 i 

 TABLE OF CONTENTS 

 

							
		 	D. ASSIGNMENT; MAINTENANCE OF UNIFORM INTEREST: 	  	 	16	 
		 	E. WAIVER OF RIGHTS TO PARTITION:	  	 	16	 
		 	F. PREFERENTIAL RIGHT TO PURCHASE: 	  	 	16	 
	IX.	 	INTERNAL REVENUE CODE ELECTION	  	 	16	 
	X.	 	CLAIMS AND LAWSUITS	  	 	17	 
	XI.	 	FORCE MAJEURE	  	 	17	 
	XII.	 	NOTICES	  	 	17	 
	XIII.	 	TERM OF AGREEMENT	  	 	18	 
	XIV.	 	COMPLIANCE WITH LAWS AND REGULATIONS	  	 	18	 
		 	A. LAWS, REGULATIONS AND ORDERS:	  	 	18	 
		 	B. GOVERNING LAW:	  	 	18	 
		 	C. REGULATORY AGENCIES:	  	 	18	 
	XV.	 	MISCELLANEOUS	  	 	19	 
		 	A. EXECUTION:	  	 	19	 
		 	B. SUCCESSORS AND ASSIGNS:	  	 	19	 
		 	C. COUNTERPARTS:	  	 	19	 
		 	D. SEVERABILITY	  	 	19	 
	XVI.	 	OTHER PROVISIONS	  	 	20	 

  
 ii 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 OPERATING AGREEMENT 

THIS AGREEMENT, entered into by and between Linn Operating, Inc. , hereinafter
designated and referred to as “Operator,” and the signatory party or parties other than Operator, sometimes hereinafter referred to individually as “Non-Operator,” and collectively as “Non-Operators.” 

WITNESSETH: 
 WHEREAS, the
parties to this agreement are owners of Oil and Gas Leases and/or Oil and Gas Interests in the land identified in Exhibit “A,” and the parties hereto have reached an agreement to explore and develop these Leases and/or Oil and Gas
Interests for the production of Oil and Gas to the extent and as hereinafter provided, 
 NOW, THEREFORE, it is agreed as follows: 

ARTICLE I. 
 DEFINITIONS

 As used in this agreement, the following words and terms shall have the meanings here ascribed to them: 

A. The term “AFE” shall mean an Authority for Expenditure prepared by a party to this agreement for the purpose of estimating the
costs to be incurred in conducting an operation hereunder.  
 B. The term
“Completion” or “Complete” shall mean a single operation intended to complete a well as a producer of Oil and Gas in one or more Zones, including, but not limited to, the setting of production casing, perforating, well
stimulation and production testing conducted in such operation. 
 C. The term “Contract Area” shall mean all of the lands, Oil
and Gas Leases and/or Oil and Gas Interests intended to be developed and operated for Oil and Gas purposes under this agreement. Such lands, Oil and Gas Leases and Oil and Gas Interests are described in Exhibit “A.”
 
 D. The term
“Deepen” shall mean a single operation whereby (1) a well is drilled to an objective Zone below the deepest Zone
in which the well was previously drilled, or below the Deepest Zone proposed in the associated AFE or (2) a horizontal well is drilled to a distance greater than 105% of the proposed
length in the associated AFE or requires an additional frac stage. , whichever is the lesser. 
 E. The terms
“Drilling Party” and “Consenting Party” shall mean a party who agrees to join in and pay its share of the cost of any operation conducted under the provisions of this agreement. 

F. The term “Drilling Unit” shall mean the area fixed for the drilling of one well by order or rule of any state or federal body
having authority. If a Drilling Unit is not fixed by any such rule or order, a Drilling Unit shall be the drilling unit as established by the pattern of drilling in the Contract Area unless fixed by express agreement of the Drilling Parties. 

G. The term “Drillsite” shall mean the Oil and Gas Lease or Oil and Gas Interest on which a proposed well is to be
located and, in the case of a horizontal well, shall include each Oil and Gas Lease and each Oil and Gas Interest through which a
lateral wellbore is or will be drilled. 
 H. The term “Initial Well”shall mean the
well required to be drilled by the parties hereto as provided in Article VI.A. 
 I. The term “Non-Consent Well” shall
mean a well in which less than all parties have conducted an operation as provided in Article VI.B.2. 
 J. The terms “Non-Drilling
Party” and “Non-Consenting Party” shall mean a party who elects not to participate in a proposed operation. 

                K. The term “Oil and Gas” shall mean oil, gas,
casinghead gas, gas condensate, and/or all other liquid or gaseous hydrocarbons and other marketable substances produced therewith, unless an intent to limit the inclusiveness of this term is specifically stated. 

L. The term “Oil and Gas Interests” or “Interests” shall mean unleased fee and mineral interests in Oil and Gas in tracts
of land lying within the Contract Area which are owned by parties to this agreement. 
 M. The terms “Oil and Gas Lease,”
“Lease” and “Leasehold” shall mean the oil and gas leases or interests therein covering tracts of land lying within the Contract Area which are owned by the parties to this agreement. 

N. The term “Plug Back” shall mean a single operation whereby a deeper Zone is abandoned in order to attempt a
Completion in a shallower Zone and, with respect to horizontal wells, includes an operation whereby the
producing interval of such well is reduced from its current total
measured depth or length. 
 O. The term “Recompletion” or “Recomplete” shall mean an operation whereby a Completion
in one Zone is abandoned in order to attempt a Completion in a different Zone within the existing wellbore. 
 P. The term
“Rework” shall mean an operation conducted in the wellbore of a well after it is Completed to secure, restore, or improve production in a Zone which is currently open to production in the wellbore. Such operations include, but
are not limited to, well stimulation operations squeeze jobs, acid
jobs or reperforations but exclude any routine repair or maintenance work or drilling, Sidetracking, Deepening, Completing, Recompleting, or Plugging Back of a well.
 
 Q. The term “Sidetrack” shall mean
with respect to vertical wellbores, the directional control and intentional deviation of a well from vertical so as to change the
bottom hole location and, with respect to horizontal wellbores, an operation by which a lateral wellbore is drilled off of the horizontal wellbore, in each case, unless done to straighten
the hole or drill around junk in the hole or to overcome other mechanical difficulties. 

R. The term “Zone” shall mean a stratum of earth containing or thought to contain a common accumulation of Oil and Gas separately
producible from any other common accumulation of Oil and Gas. 
 Unless the context otherwise clearly indicates, words used in the singular
include the plural, the word “person” includes natural and artificial persons, the plural includes the singular, and any gender includes the masculine, feminine, and neuter. 

ARTICLE II. 
 EXHIBITS

 The following exhibits, as indicated below and attached hereto, are incorporated in and made a part hereof: 

 

					
	X	  	A.	  	Exhibit “A,” shall include the following information:
		  		  	(1) Description of lands subject to this agreement,
		  		  	(2) Restrictions, if any, as to depths, formations, or substances,
		  		  	(3) Parties to agreement with addresses, email addresses and telephone numbers for notice purposes,
		  		  	(4) Percentages or fractional interests of parties to this agreement,
		  		  	(5) Oil and Gas Leases and/or Oil and Gas Interests subject to this agreement,
		  		  	(6) Burdens on production.
		  	B.	  	Exhibit “B,” Form of Lease.
	X	  	C.	  	Exhibit “C,” Accounting Procedure.
	X	  	D.	  	Exhibit “D,” Insurance.
	X	  	E.	  	Exhibit “E,” Gas Balancing Agreement.
	X	  	F.	  	Exhibit “F,” Non-Discrimination and Certification of Non-Segregated Facilities.
		  	G.	  	Exhibit “G,” Tax Partnership.
	X	  	H.	  	Other: Exhibit “H”, Memorandum of Operating Agreement and Financing Statement

  
 - 1 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 If any provision of any exhibit, except Exhibits
“E,” and “F” and “G,” is inconsistent with any provision contained in
the body of this agreement Articles I. through
XVI.,, the provisions in Articles I. through XVI.the body of this agreement shall prevail. 

ARTICLE III. 
 INTERESTS
OF PARTIES 
 A. Oil and Gas Interests: 

If any party owns an Oil and Gas Interest in the Contract Area, that Interest shall be treated for all purposes of this
agreement and during the term hereof as if it were covered by the form of Oil and Gas Lease attached hereto as Exhibit “B,” and the owner thereof shall be deemed to own both royalty interest in such lease and the interest of the
lessee thereunder. 
 B. Interests of Parties in Costs and Production:  

Unless changed by other provisions of this agreement, all costs and liabilities
incurred in operations under this agreement shall be borne and paid, and all equipment and materials acquired in operations on the Contract Area shall be owned, by the parties as their interests are set forth in Exhibit “A.” In the same
manner, the parties shall also own all production of Oil and Gas from the Contract Area as their interests are set forth in Exhibit
“A”, subject, however, to the payment of royalties and other burdens on production as described hereafter. 
 Regardless of
which party has contributed any Oil and Gas Lease or Oil and Gas Interest on which royalty or other burdens may be payable and except as otherwise expressly provided in this agreement, each party shall pay or deliver, or cause to be paid or
delivered, all burdens on its share of the production from the Contract Area as of the date of this agreement up to, but not in excess of,
and shall indemnify, defend and hold the other parties free from any liability therefor. Except as otherwise expressly provided in this agreement, if any party has
contributed hereto any Lease or Interest which is burdened with any royalty, overriding royalty, production payment or other burden on production in excess of the amounts stipulated above, such party so burdened
shall assume and alone bear all such excess obligations and shall indemnify, defend and hold the other parties hereto harmless from any and all claims attributable to such excess burden. However, so long as the
Drilling Unit for the productive Zone(s) is identical with the Contract Area, each party shall pay or deliver, or cause to be paid or delivered, all burdens on production from the Contract Area due under the terms of the Oil and Gas
Lease(s) which such party has contributed to this agreement, and shall indemnify, defend and hold the other parties free from any liability therefor. 

No party shall ever be responsible, on a price basis higher than the price received by such party, to any other party’s
lessor or royalty owner for the other party’s royalty or other burden on production, and if such other party’s lessor or royalty owner should demand and receive settlement
on a higher price basis for such burden, the party contributing the affected Lease shall bear the additional royalty
or other burden attributable to such settlement higher price. 

Nothing contained in this Article III.B. shall be deemed an assignment or cross-assignment of interests covered hereby, and in the event two
or more parties contribute to this agreement jointly owned Leases, the parties’ undivided interests in said Leaseholds shall be deemed separate leasehold interests for the purposes of this agreement. 

C. Subsequently Created Interests: See also Article XVI.A. 

If any party has contributed hereto a Lease or Interest that is burdened with an assignment of production given as security for the payment of
money, or if, after the date of this agreement, any party creates an overriding royalty, production payment, net profits interest, assignment of production or other burden payable out of production attributable to its working interest hereunder,
such burden shall be deemed a “Subsequently Created Interest.” Further, if any party has contributed hereto a Lease or Interest burdened with an overriding royalty, production payment, net profits interests, or other burden payable out of
production created prior to the date of this agreement, and such burden is not shown on Exhibit “A,” such burden also shall be deemed a Subsequently Created Interest to the extent such burden causes the burdens on such party’s
Lease or Interest to exceed the amount stipulated in Article III.B. above. 

                The party whose interest is burdened with the Subsequently
Created Interest (the “Burdened Party”) shall assume and alone bear, pay and discharge the Subsequently Created Interest and shall indemnify, defend and hold harmless the other parties from and against any liability therefor. Further, if
the Burdened Party fails to pay, when due, its share of expenses chargeable hereunder, all provisions of Article VII.B. shall be enforceable against the Subsequently Created Interest in the same manner as they are enforceable against the working
interest of the Burdened Party. If the Burdened Party is required under this agreement to assign or relinquish to any other party, or parties, all or a portion of its working interest and/or the production attributable thereto, said other party, or
parties, shall receive said assignment and/or production free and clear of said Subsequently Created Interest, and the Burdened Party shall indemnify, defend and hold harmless said other party, or parties, from any and all claims and demands for
payment asserted by owners of the Subsequently Created Interest. 
 ARTICLE IV. 

TITLES 
 A. Title Examination: 

Title examination (which may include title opinion and/or run sheets, in accordance
with past practice) shall be made on the Drillsite of any proposed well prior to commencement of drilling operations in accordance with this Article IV.A. and, if a majority in
interest of the Drilling Parties so request or Operator so elects, title examination (which may include title opinions and/or run sheets, in accordance with past practice) shall be
made on the entire Drilling Unit or any portion thereof, or maximum anticipated Drilling
Unit or any portion thereof, of the well. The opinion (or run sheet, as applicable) will include the ownership of the working
interest, minerals, royalty, overriding royalty and production payments under the applicable Leases. Each party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to
Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the parties, but
necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys and field landmen.
Copies of all title opinions shall be furnished to each Drilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys
and field landmen for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit
“C” shall be borne by the Drilling Parties in the proportion that the interest of each Drilling Party bears to the total interest of all Drilling Parties as such interests appear in Exhibit “A.” Operator shall make no charge for
services rendered by its staff attorneys or other personnel in the performance of the above functions. 
 Each party shall be responsible
for securing curative matter and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by such party, provided that Non-Operator shall use its
reasonable efforts to cooperate with Operator in obtaining any consent necessary (including any lessor’s consent) to obtain an approval order for the formation of an alternate tract unit. Operator shall be responsible for the preparation
and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders
or approvals necessary or appropriate to the conduct of operations hereunder. This shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by Operator,
including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this agreement, shall be direct charges to the joint account
and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. 

  
 - 2 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 No well shall be drilled on the Contract Area until after (1) the title to the Drillsite
or Drilling Unit, if appropriate, has been examined as above provided, and (2) the title has been approved by Operator the examining attorney or title has been
accepted by all of the Drilling Parties in such well. 
 B. Loss or Failure of Title: 

1. Failure of Title: Should any Oil and Gas Interest or Oil and Gas Lease be lost through failure of title, which results in a
reduction of interest from that shown on Exhibit “A,” the party credited with contributing the affected Lease or Interest (including, if applicable, a successor in interest to such party) shall have ninety (90) days from final
determination of title failure to acquire a new lease or other instrument curing the entirety of the title failure, which acquisition will not be subject to Article VIII.B., and failing to do so, this agreement, nevertheless, shall continue in force
as to all remaining Oil and Gas Leases and Interests; and, 
 (a) The party credited with contributing the Oil and Gas
Lease or Interest affected by the title failure (including, if applicable, a successor in interest to such party) shall bear alone the entire loss and it shall not be entitled to recover from
Operator or the other parties any development or operating costs which it may have previously paid or incurred, but there shall be no additional liability on its part to the other parties
hereto by reason of such title failure; 
 (b) There shall be no retroactive adjustment of expenses incurred or revenues
received from the operation of the Lease or Interest which has failed, but the interests of the parties contained on Exhibit “A”shall be revised on an acreage basis, as of the time it is determined finally that title failure has occurred,
so that the interest of the party whose Lease or Interest is affected by the title failure will thereafter be reduced in the Contract Area by the amount of the Lease or Interest failed; 

(c) If the proportionate interest of the other parties hereto in any producing well previously drilled on the Contract
Area is increased by reason of the title failure, the party who bore the costs incurred in connection with such well attributable to the Lease or Interest which has failed shall receive the
proceeds attributable to the increase in such interest (less costs and burdens attributable thereto) until it has been reimbursed for unrecovered costs paid by it in connection with such well
attributable to such failed Lease or Interest; 
 (d) Should any person not a party to this agreement, who is
determined to be the owner of any Lease or Interest which has failed, pay in any manner any part of the cost of operation, development, or equipment, such amount shall be paid to the party or
parties who bore the costs which are so refunded; 
 (e) Any liability to account to a person not a party
to this agreement for prior production of Oil and Gas which arises by reason of title failure shall be borne severally by each party (including a predecessor to a current party) who received
production for which such accounting is required based on the amount of such production received, and each such party shall severally indemnify, defend and hold harmless all other parties
hereto for any such liability to account; 
 (f) No charge shall be made to the joint account for legal expenses, fees or
salaries in connection with the defense of the Lease or Interest claimed to have failed, but if the party contributing such Lease or Interest hereto elects to defend its title it shall bear all expenses in connection therewith; and 

(g) If any party is given credit on Exhibit “A”to a Lease or Interest which is limited solely to ownership of an interest in
the wellbore of any well or wells and the production therefrom, such party’s absence of interest in the remainder of the Contract Area shall be considered a Failure of Title as to such remaining Contract Area unless that absence of interest is
reflected on Exhibit “A.” 
 2. Loss by Non-Payment or Erroneous Payment of Amount Due: If, through mistake or
oversight, any rental, shut-in well payment, minimum royalty or royalty payment, or other payment necessary to maintain all or a portion of an Oil and Gas Lease or interest is not paid or is
erroneously paid, and as a result a Lease or Interest terminates, there shall be no monetary liability against the party who failed to make such payment. Unless the party who failed to make the required
payment secures a new Lease or Interest covering the same interest within ninety (90) days from the discovery of the failure to make proper payment, which acquisition will not be subject to
Article VIII.B., the interests of the parties reflected on Exhibit “A” shall be revised on an acreage basis, effective as of the date of termination of the Lease or
Interest involved, and the party who failed to make proper payment will no longer be credited with an interest in the Contract Area on account of ownership of the Lease or Interest which has
terminated. If the party who failed to make the required payment shall not have been fully reimbursed, at the time of the loss, from the proceeds of the sale of Oil and Gas attributable to the lost Lease or
Interest, calculated on an acreage basis, for the development and operating costs previously paid on account of such Lease or Interest, it shall be reimbursed for unrecovered actual costs previously
paid by it (but not for its share of the cost of any dry hole previously drilled or wells previously abandoned) from so much of the following as is necessary to effect reimbursement: 

(a) Proceeds of Oil and Gas produced prior to termination of the Lease or Interest, less operating expenses and lease
burdens chargeable hereunder to the person who failed to make payment, previously accrued to the credit of the lost Lease or Interest, on an acreage basis, up to the amount of unrecovered
costs; 
 (b) Proceeds of Oil and Gas, less operating expenses and lease burdens chargeable hereunder to the person who
failed to make payment, up to the amount of unrecovered costs attributable to that portion of Oil and Gas thereafter produced and marketed (excluding production from any wells
thereafter drilled) which, in the absence of such Lease or Interest termination, would be attributable to the lost Lease or Interest on an acreage basis and which as a result of such Lease or Interest
termination is credited to other parties, the proceeds of said portion of the Oil and Gas to be contributed by the other parties in proportion to their respective interests reflected on Exhibit
“A”; and, 
 (c) Any monies, up to the amount of unrecovered costs, that may be paid by
any party who is, or becomes, the owner of the Lease or Interest lost, for the privilege of participating in the Contract Area or becoming a party to this agreement. 

3. Other Losses: All losses of Leases or Interests committed to
this agreement, other than those set forth in Articles IV.B.1. and IV.B.2. above, shall be joint losses and shall be borne by all parties in proportion to their respective
interests shown on Exhibit “A.”This Such joint losses shall include but not be limited to the loss of any Lease or Interest through failure to develop or
because express or implied covenants have not been performed (other than performance which requires only the payment of money), and the loss of any Lease by expiration at the end of its primary term if it is not renewed or extended. There shall be
no readjustment of interests in the remaining portion of the Contract Area on account of any joint loss. 
 4. Curing Title: In the
event of a Failure of Title under Article IV.B.1. or a loss of title under Article IV.B.2. above, any Lease or Interest acquired by any party hereto (other than the party whose interest has failed or was lost)
during the ninety (90) day period provided by Article IV.B.1. and Article IV.B.2. above covering all or a portion of the interest that has failed or was lost shall be offered at
cost to the party whose interest has failed or was lost, and the provisions of Article VIII.B. shall not apply to such acquisition. 

  
 - 3 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 ARTICLE V. 

OPERATOR 
 A. Designation and
Responsibilities of Operator: 
 Linn Operating, Inc. shall be the Operator
of the Contract Area, and shall conduct and direct and have full control of all operations on the Contract Area as permitted and required by, and within the limits of this agreement. In its performance of services hereunder for the Non-Operators,
Operator shall be an independent contractor not subject to the control or direction of the Non-Operators except as to the type of operation to be undertaken in accordance with the election procedures contained in this agreement. Operator shall not
be deemed, or hold itself out as, the agent of the Non-Operators with authority to bind them to any obligation or liability assumed or incurred by Operator as to any third party. Operator shall conduct its activities under this agreement as a
reasonable prudent operator, in a good and workmanlike manner, with due diligence and dispatch, in accordance with good oilfield practice, and in compliance with applicable law and regulation, but in no event shall it have any liability as Operator
to the other parties or any of their respective officers, employees, or agents for any claims, whether or not due to the negligence of Operator for losses sustained
or liabilities incurred except such as may result from gross negligence or willful misconduct of the Operator. See also Article XVI.B. 

B. Resignation or Removal of Operator and Selection of Successor: 

1. Resignation or Removal of Operator: Operator may resign at any time by giving written notice thereof to Non-Operators. If Operator
terminates its legal existence, or Operator or one of its affiliates, no longer owns an interest hereunder in the Contract Area, or is no
longer reasonably capable of serving as Operator, Operator shall be deemed to have resigned without any action by Non-Operators, except the selection of a successor. Operator may be removed
only for good cause by the affirmative vote of Non-Operators owning a majority interest based on ownership as shown on Exhibit “A” remaining after excluding the voting interest of Operator; such vote shall not be deemed effective until a
written notice has been delivered to the Operator by a Non-Operator detailing the alleged default and Operator has failed to cure the default within thirty (30) days from its receipt of the notice or, if the default concerns an operation then
being conducted, within forty-eight (48) hours of its receipt of the notice. For purposes hereof, “good cause” shall mean not only gross negligence or willful misconduct but also the material breach of or inability to meet the
standards of operation contained in Article V.A. or material failure or inability to perform its obligations under this agreement. 

Subject to Article VII.D.1., sSuch resignation or removal shall
not become effective until 7:00 o’clock A.M. on the first day of the calendar month following the expiration of ninety (90) days after the giving of notice of resignation by Operator or action by the Non-Operators to remove Operator,
unless a successor Operator has been selected and assumes the duties of Operator at an earlier date. Operator, after the effective date of resignation or removal, shall be bound by the
terms hereof as a Non-Operator. A change of a corporate name or structure of Operator or transfer of Operator’s interest to any single affiliate, subsidiary, parent or successor
corporation shall not be the basis for removal of Operator. See also Article XVI.S. 

2. Selection of Successor Operator: Upon the resignation or removal of Operator under any provision of this agreement, a successor
Operator shall be selected by the parties. The successor Operator shall be selected from by the parties owning an interest in the Contract Area at the time such successor
Operator is selected. The successor Operator shall be selected by the affirmative vote of two (2) or more parties owning a
majority interest based on ownership as shown on Exhibit “A”; provided, however, if an Operator which has been removed or is deemed to have resigned fails to vote or votes only to succeed itself, the successor Operator shall be selected by
the affirmative vote of the party or parties owning a majority interest based on ownership as shown on Exhibit “A” remaining after excluding the any remaining
voting interest of the Operator that was removed or resigned and the interest of its affiliates; and provided further that the requirement of two (2) or more parties shall not apply in the
event that only one (1) party is entitled to vote. The former Operator shall promptly deliver to the successor Operator all records and data relating to the operations conducted by the former Operator to the extent such records and data are
not already in the possession of the successor operator. Any cost of obtaining or copying the former Operator’s records and data shall be charged to the joint account. 

3. Effect of Bankruptcy: If Operator becomes insolvent, bankrupt or is placed in receivership, it shall be deemed to have resigned
without any action by Non-Operators, except the selection of a successor. If a petition for relief under the federal bankruptcy laws is filed by or against Operator, and the removal of Operator is prevented by the federal bankruptcy court, all
Non-Operators and Operator shall comprise an interim operating committee to serve until Operator has elected to reject or assume this agreement pursuant to the Bankruptcy Code, and an election to reject this agreement by Operator as a debtor in
possession, or by a trustee in bankruptcy, shall be deemed a resignation as Operator without any action by Non-Operators, except the selection of a successor. During the period of time the operating committee controls operations, all actions shall
require the approval of two (2) or more parties owning a majority interest based on ownership as shown on Exhibit “A.” In the event there are only two (2) parties to this agreement, during the period of time the operating
committee controls operations, a third party acceptable to Operator, Non-Operator and the federal bankruptcy court shall be selected as a member of the operating committee, and all actions shall require the approval of two (2) members of the
operating committee without regard for their interest in the Contract Area based on Exhibit “A.” 
 C. Employees and Contractors: 

The number of employees or contractors used by Operator in conducting operations hereunder, their selection, and the hours of labor and the
compensation for services performed shall be determined by Operator, and all such employees or contractors shall be the employees or contractors of Operator. 

D. Rights and Duties of Operator:  

1. Competitive Rates and Use of Affiliates: All wells drilled
on operations conducted in the Contract Area shall be drilled conducted on a competitive contract basis
at the usual rates prevailing in the area. If it so desires, Operator may employ its own tools and equipment in the drilling of wells conducting such operations, but its
charges therefor shall not exceed the prevailing rates in the area and the rate of such charges shall be agreed upon by the parties in writing before drilling operations are commenced, and such work shall be performed by Operator under the
same terms and conditions as are customary, competitive and usual in the area in contracts of independent contractors who are doing work of a similar nature. All work
performed or materials supplied by affiliates or related parties of Operator shall be performed or supplied at customary and competitive rates, pursuant to written agreement, and in
accordance with customs and standards prevailing in the industry. 
 2. Discharge of Joint Account Obligations: Except as herein
otherwise specifically provided, Operator shall promptly pay and discharge expenses incurred in the development and operation of the Contract Area pursuant to this agreement and shall charge each of the parties hereto with their respective
proportionate shares upon the expense basis provided in Exhibit “C.” Operator shall keep an accurate record of the joint account hereunder, showing expenses incurred and charges and credits made and received. 

3. Protection from Liens: Operator shall pay, or cause to be paid, as and when they become due and payable, all accounts of contractors
and suppliers and wages and salaries for services rendered or performed, and for materials supplied on, to or in respect of the Contract Area or any operations for the joint account thereof, and shall keep the Contract Area free from liens and
encumbrances resulting therefrom except for those resulting from a bona fide dispute as to services rendered or materials supplied. 

  
 - 4 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 4. Custody of Funds: Operator shall hold for the account of the Non-Operators
any funds of the Non-Operators advanced or paid to the Operator, either for the conduct of operations hereunder or as a result of the sale of production from the Contract Area, and such funds shall remain the funds of the Non-Operators on whose
account they are advanced or paid until used for their intended purpose or otherwise delivered to the Non-Operators or applied toward the payment of debts as provided in Article VII.B. Nothing in this paragraph shall be construed to establish a
fiduciary relationship between Operator and Non-Operators for any purpose other than to account for Non-Operator funds as herein specifically provided. Nothing in this paragraph shall require the maintenance by Operator of separate accounts for the
funds of Non-Operators unless the parties otherwise specifically agree.  
 5.
Access to Contract Area and Records: Operator shall, except as otherwise provided herein, permit each Non-Operator or its duly authorized representative, at the Non-Operator’s sole risk and cost, full and free access at all reasonable
times to all operations of every kind and character being conducted for the joint account on the Contract Area and to the records of operations conducted thereon or production therefrom, including Operator’s books and records relating thereto.
Such access rights shall not be exercised in a manner interfering with Operator’s conduct of an operation hereunder and shall not obligate Operator to furnish any geologic or geophysical data of an interpretive nature unless the cost of
preparation of such interpretive data was charged to the joint account. Operator will furnish to each Non-Operator upon request copies of any and all reports and information obtained by Operator in connection with production and related items,
including, without limitation, meter and chart reports, production purchaser statements, run tickets and monthly gauge reports, but excluding purchase contracts and pricing information to the extent not applicable to the production of the
Non-Operator seeking the information. Any audit of Operator’s records relating to amounts expended and the appropriateness of such expenditures shall be conducted in accordance with the audit protocol specified in Exhibit “C.” 

6. Filing and Furnishing Governmental Reports: Operator will file, and upon written request promptly furnish copies to each requesting
Non-Operator not in default of its payment obligations, all operational notices, reports or applications required to be filed by local, State, Federal or Indian agencies or authorities having jurisdiction over operations hereunder. Each Non-Operator
shall provide to Operator on a timely basis all information necessary to Operator to make such filings. 
 7. Drilling and Testing
Operations: The following provisions shall apply to each well drilled, Sidetracked, Deepened, Completed, Recompleted or Plugged Back hereunder, including but not
limited to the Initial Well:  
 (a) Operator will
promptly advise Non-Operators of the date on which the well is spudded, or the date on which drilling operations are commenced. 
 (b)
Operator will send to Non-Operators such reports, test results and notices regarding the progress of operations on the well as the Non-Operators shall reasonably request, including, but not limited to, daily drilling reports, completion reports, and
well logs.  
 (c) Operator shall adequately test
the objective Zone and may test any other all Zones encountered within the Contract Area which may reasonably be
expected to be capable of producing Oil and Gas in paying quantities as a result of examination of the electric log or any other logs or cores or tests conducted hereunder. 

8. Cost Estimates: Upon request of any Consenting Party, Operator shall furnish estimates of current and cumulative costs incurred for
the joint account at reasonable intervals during the conduct of any operation pursuant to this agreement. Operator shall not be held liable for errors in such estimates so long as the estimates are made in good faith. 

9. Insurance: At all times while operations are conducted hereunder, Operator shall comply with the workers compensation law of the
state where the operations are being conducted; provided, however, that Operator may be a self- insurer for liability under said compensation laws in which event the only charge that shall be made to the joint account shall be as provided in Exhibit
“C.” Operator shall also carry or provide insurance for the benefit of the joint account of the parties as outlined in Exhibit “D” attached hereto and made a part hereof. Operator shall require all contractors
(and shall use commercially reasonable efforts to require their subcontractors) engaged in work on or for the Contract Area to comply with the workers compensation law of the state where
the operations are being conducted and to maintain such other insurance as Operator may require. 
 In the event automobile liability
insurance is specified in said Exhibit “D,” or subsequently receives the approval of the parties, no direct charge shall be made by Operator for premiums paid for such insurance for Operator’s automotive equipment. 

ARTICLE VI. 
 DRILLING
AND DEVELOPMENT 
 A. Initial Well: 

On or before the day of , , Operator shall commence the drilling of the Initial Well at the following location: and shall thereafter
continue the drilling of the well with due diligence to The drilling of the Initial Well and the participation therein by all parties is obligatory, subject to Article VI.C.1. as to participation in Completion operations and Article VI.F. as to
termination of operations and Article XI as to occurrence of force majeure. 
 B. Subsequent Operations: 

1. Proposed Operations: If any party hereto should desire to drill any well on the Contract Area other than the Initial
Well, or if any such party should desire to Rework, Sidetrack, Deepen, Recomplete or Plug Back a dry hole or a well no longer capable of producing in paying
quantities in which such party has not otherwise relinquished its interest in the proposed objective Zone under this agreement, the party desiring to drill, Rework, Sidetrack, Deepen, Recomplete or Plug Back such a well shall give written notice of
the proposed operation to the parties who have not otherwise relinquished their interest in such objective Zone 

  
 - 5 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 
under this agreement and to all other parties in the case of a proposal for Sidetracking or Deepening, specifying the work to be
performed, the location, proposed depth, objective Zone and the estimated drilling, completion and equipping cost of the
operation. The parties to whom such a notice is delivered shall have thirty (30) days after receipt of the notice within which to notify the party proposing to do the work whether they elect to participate in the cost of the proposed operation.
If a drilling rig is on location, notice of a proposal to Rework, Sidetrack, Recomplete, Plug Back or Deepen may be given by telephone, email or facsimilie and the response period shall be
limited to forty-eight (48) hours, exclusive of Saturday, Sunday and legal holidays. Failure of a party to whom such notice is delivered to reply within the period above fixed shall
constitute an election by that party not to participate in the cost of the proposed operation. Any proposal by a party to conduct an operation conflicting with the operation initially proposed shall be delivered to all parties within the time and in
the manner provided in Article VI.B.6. See also Article XVI.G. 
 If all parties
to whom such notice is delivered elect to participate in such a proposed operation, the parties shall be contractually committed to participate therein provided such operations are commenced within the time period hereafter set forth, and Operator
shall, no later than ninety (90) days after expiration of the notice period of thirty (30) days (or as promptly as practicable after the expiration of the forty-eight (48) hour period when a drilling rig is on location, as the case
may be), actually commence the proposed operation and thereafter complete it with due diligence at the risk and expense of the parties participating therein; provided, however, that, except in
cases where a drilling rig is on location, said commencement date may be extended upon written notice of same by Operator to the other parties, for a period of up to thirty (30) additional days if, in the sole opinion of Operator, such
additional time is reasonably necessary to obtain permits from governmental authorities, surface rights (including rights-of- way) or appropriate drilling equipment, or to complete title examination or curative matter required for title approval or
acceptance. If the actual operation has not been commenced within the time provided (including any extension thereof as specifically permitted herein or in the force majeure provisions of Article XI) and if any party hereto still desires to conduct
said operation, written notice proposing same must be resubmitted to the other parties in accordance herewith as if no prior proposal had been made. Those parties that did not participate in the drilling of a well for which a proposal to Deepen or
Sidetrack is made hereunder shall, if such parties desire to participate in the proposed Deepening or Sidetracking operation, reimburse the Drilling Parties in accordance with Article VI.B.4. in the event of a Deepening operation and in accordance
with Article VI.B.5. in the event of a Sidetracking operation. 
 2. Operations by Less Than All Parties: 

(a) Determination of Participation. If any party to whom such notice is delivered as provided in Article VI.B.1. or VI.C.1. (Option
No. 2) elects not to participate in the proposed operation, then, in order to be entitled to the benefits of this Article, the party or parties giving the notice and such other parties as shall elect to participate in the operation shall, no
later than ninety (90) days after the expiration of the notice period of thirty (30) days (or as promptly as practicable after the expiration of the forty-eight (48) hour period when a drilling rig is on location, as the case may be)
actually commence the proposed operation and complete it with due diligence. Operator shall perform all work for the account of the Consenting Parties; provided, however, if no drilling rig or other equipment is on location, and if Operator is a
Non-Consenting Party, the Consenting Parties shall either: (i) request Operator to perform the work required by such proposed operation for the account of the Consenting Parties, or (ii) designate one of the Consenting Parties as Operator
to perform such work. The rights and duties granted to and imposed upon the Operator under this agreement are granted to and imposed upon the party designated as Operator for an operation in which the original Operator is a Non-Consenting Party.
Consenting Parties, when conducting operations on the Contract Area pursuant to this Article VI.B.2., shall comply with all terms and conditions of this agreement. 

If less than all parties approve any proposed operation, the proposing party, immediately after the expiration of the applicable notice
period, shall advise all Parties of the total interest of the parties approving such operation and its recommendation as to whether the Consenting Parties should proceed with the operation as proposed. Each Consenting Party,
within forty-eight (48) hours (exclusive of Saturday, Sunday, and legal holidays) after delivery of such notice, shall advise the proposing party of its desire to (i) limit
participation to such party’s interest as shown on Exhibit “A” or (ii) carry only its proportionate part (determined by dividing such party’s interest in the Contract Area by the interests of all Consenting Parties in the
Contract Area) of Non-Consenting Parties’ interests, or (iii) carry its proportionate part (determined as provided in (ii)) of Non-Consenting Parties’ interests together with all or a portion of its proportionate part of any
Non-Consenting Parties’ interests that any Consenting Party did not elect to take. Any interest of Non-Consenting Parties that is not carried by a Consenting Party shall be deemed to be carried by the party proposing the operation if such party
does not withdraw its proposal. Failure to advise the proposing party within the time required shall be deemed an election under (i) of this paragraph. In the event a drilling rig is
on location, notice may be given by telephone, and the time permitted for such a response shall not exceed a total of forty-eight (48) hours (exclusive of Saturday, Sunday and legal holidays). The proposing party, at its election, may withdraw
such proposal if there is less than 100% participation and shall notify all parties of such decision within ten (10) days, or within twenty-four (24) hours if a drilling rig is on location, following expiration of the applicable response
period. If 100% subscription to the proposed operation is obtained, the proposing party shall promptly notify the Consenting Parties of their proportionate interests in the operation and the party serving as Operator shall commence such operation
within the period provided in Article VI.B.1., subject to the same extension right as provided therein. 
 (b) Relinquishment of
Interest for Non-Participation. The entire cost and risk of conducting such operations shall be borne by the Consenting Parties in the proportions they have elected to bear same under the terms of the preceding paragraph. Consenting Parties
shall keep the leasehold estates involved in such operations free and clear of all liens and encumbrances of every kind created by or arising from the operations of the Consenting Parties. If such an operation results in a dry hole, then subject to
Articles VI.B.6. and VI.E.3., the Consenting Parties shall plug and abandon the well and restore the surface location at their sole cost, risk and expense; provided, however, that those Non-Consenting Parties that participated in
the earlier drilling, Deepening or Sidetracking of the well shall remain liable for, and shall pay, their proportionate shares of the cost of plugging and abandoning the well and restoring
the surface location insofar only as those costs were not increased by the subsequent operations of the Consenting Parties. If any well drilled, Reworked, Sidetracked, Deepened, Recompleted or Plugged Back under the provisions of this Article
results in a well capable of producing Oil and/or Gas in paying quantities, the Consenting Parties shall Complete and equip the well to produce at their sole cost and risk, and the well shall then be turned over to Operator (if the Operator did not
conduct the operation) and shall be operated by it at the expense and for the account of the Consenting Parties. Upon commencement of operations for the drilling, Reworking, Sidetracking, Recompleting, Deepening or Plugging Back of any such well by
Consenting Parties in accordance with the provisions of this Article, each Non-Consenting Party shall be deemed to have relinquished to Consenting Parties, and the Consenting Parties shall own and be entitled to receive, in proportion to their
respective interests, all of such Non-Consenting Party’s interest in the well and share of production therefrom or, in the case of a Reworking, Sidetracking, 

  
 - 6 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 
Deepening, Recompleting or Plugging Back, or a Completion pursuant to Article VI.C.1. Option No. 2, all of such Non- Consenting Party’s interest in the production obtained from the
operation in which the Non-Consenting Party did not elect to participate. Such relinquishment shall be effective until the proceeds of the sale of such share, calculated at the well, or market value thereof if such share is not sold (after deducting
applicable ad valorem, production, severance, and excise taxes, royalty, overriding royalty and other interests not excepted by Article III.C. payable out of or measured by the production from such well accruing with respect to such interest until
it reverts), shall equal the total of the following: 
 (i) 100 % of each such
Non-Consenting Party’s share of the cost of any newly acquired surface equipment beyond the wellhead connections (including but not limited to stock tanks, separators, treaters, pumping equipment and piping), plus 100% of each such
Non-Consenting Party’s share of the cost of operation of the well commencing with first production and continuing until each such Non-Consenting Party’s relinquished interest shall revert to it under other provisions of this Article, it
being agreed that each Non-Consenting Party’s share of such costs and equipment will be that interest which would have been chargeable to such Non-Consenting Party had it participated in the well from the beginning of the operations; and 

(ii) 300 % of (a) that portion of the costs and expenses of drilling,
Reworking, Sidetracking, Deepening, Plugging Back, testing, Completing, and Recompleting, after deducting any cash contributions received under Article VIII.C., and of (b) that portion of the cost of newly acquired equipment in the well (to and
including the wellhead connections), which would have been chargeable to such Non-Consenting Party if it had participated therein. 

Notwithstanding anything to the contrary in this Article VI.B., if the well does not reach the deepest objective Zone described in the notice
proposing the well for reasons other than the encountering of granite or practically impenetrable substance or other condition in the hole rendering further operations impracticable, Operator shall give notice thereof to each Non-Consenting Party
who (a) submitted or voted for an alternative proposal under Article VI.B.6. to drill the well to a shallower Zone than the deepest objective Zone proposed in the notice under which the
well was drilled, and (b) owns an interest in such shallower Zone, and each such Non-Consenting Party shall have the option to participate in the initial proposed Completion of the
well by paying its share of the cost of drilling the well to its actual depth, calculated in the manner provided in Article VI.B.4. (a). If any such Non- Consenting Party does not elect to participate in the first Completion proposed for such well,
the relinquishment provisions of this Article VI.B.2. (b) shall apply to such party’s interest. 
 (c) Reworking, Recompleting
or Plugging Back. An election not to participate in the drilling, Sidetracking or Deepening of a well shall be deemed an election not to participate in any Reworking or Plugging Back operation proposed in such a well, or portion thereof, to
which the initial non-consent election applied that is conducted at any time prior to full recovery by the Consenting Parties of the Non-Consenting Party’s recoupment amount. Similarly, an election not to participate in the Completing or
Recompleting of a well shall be deemed an election not to participate in any Reworking operation proposed in such a well, or portion thereof, to which the initial non-consent election applied that is conducted at any time prior to full recovery by
the Consenting Parties of the Non-Consenting Party’s recoupment amount. Any such Reworking, Recompleting or Plugging Back operation conducted during the recoupment period shall be deemed part of the cost of operation of said well and there
shall be added to the sums to be recouped by the Consenting Parties 300% of that portion of the costs of the Reworking, Recompleting or Plugging Back operation which would have been
chargeable to such Non-Consenting Party had it participated therein. If such a Reworking, Recompleting or Plugging Back operation is proposed during such recoupment period, the provisions of this Article VI.B. shall be applicable as between said
Consenting Parties in said well or portion thereof. 
 (d) Recoupment
Matters. During the period of time Consenting Parties are entitled to receive Non-Consenting Party’s share of production, or the proceeds therefrom, Consenting Parties shall be responsible for the payment of all ad valorem, production,
severance, excise, gathering and other taxes, and all royalty, overriding royalty and other burdens on production applicable to Non-Consenting Party’s share of production not excepted
by Article III.C. 
 In the case of any Reworking, Sidetracking, Plugging Back, Recompleting or Deepening operation, the Consenting Parties
shall be permitted to use, free of cost, all casing, tubing and other equipment in the well, but the ownership of all such equipment shall remain unchanged; and upon abandonment of a well after such Reworking, Sidetracking, Plugging Back,
Recompleting or Deepening, the Consenting Parties shall account for all such equipment to the owners thereof, with each party receiving its proportionate part in kind or in value, less cost of salvage. 

                Within ninety (90) days after the completion of any
operation under this Article, the party conducting the operations for the Consenting Parties shall furnish each Non-Consenting Party with an inventory of the equipment in and connected to the well, and an itemized statement of the cost of drilling,
Sidetracking, Deepening, Plugging Back, testing, Completing, Recompleting, and equipping the well for production; or, at its option, the operating party, in lieu of an itemized statement of such costs of operation, may submit a detailed statement of
monthly billings. Each month thereafter, during the time the Consenting Parties are being reimbursed as provided above, the party conducting the operations for the Consenting Parties shall furnish the Non-Consenting Parties with an itemized
statement of all costs and liabilities incurred in the operation of the well, together with a statement of the quantity of Oil and Gas produced from it and the amount of proceeds realized from the sale of the well’s working interest production
during the preceding month. In determining the quantity of Oil and Gas produced during any month, Consenting Parties shall use industry accepted methods such as but not limited to metering or periodic well tests. Any amount realized from the sale or
other disposition of equipment newly acquired in connection with any such operation which would have been owned by a Non-Consenting Party had it participated therein shall be credited against the total unreturned costs of the work done and of the
equipment purchased in determining when the interest of such Non-Consenting Party shall revert to it as above provided; and if there is a credit balance, it shall be paid to such Non- Consenting Party. 

If and when the Consenting Parties recover from a Non-Consenting Party’s relinquished interest the amounts provided for above, the
relinquished interests of such Non-Consenting Party shall automatically revert to it as of 7:00 a.m. on the day following the day on which such recoupment occurs, and, from and after such reversion, such Non-Consenting Party shall own the same
interest in such well, the material and equipment in or pertaining thereto, and the production therefrom as such Non-Consenting Party would have been entitled to had it participated in the drilling, Sidetracking, Reworking, Deepening, Recompleting
or Plugging Back of said well. Thereafter, such Non-Consenting Party shall be charged with and shall pay its proportionate part of the further costs of the operation of said well, including
plugging, abandonment and surface restoration costs, in accordance with the terms of this agreement and Exhibit “C” attached hereto. 

3. Stand-By Costs: When a well which has been drilled or Deepened has reached its authorized depth and all tests have been completed
and the results thereof furnished to the parties, or when operations on the well have been otherwise terminated pursuant to Article VI.F., stand-by costs incurred pending response to a party’s notice proposing a Reworking,

  
 - 7 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 
Sidetracking, Deepening, Recompleting, Plugging Back or Completing operation in such a well (including the period required under Article VI.B.6. to resolve competing proposals) shall be charged
and borne as part of the drilling or Deepening operation just completed. Stand-by costs subsequent to all parties responding, or expiration of the response time permitted, whichever first occurs, and prior to agreement as to the participating
interests of all Consenting Parties pursuant to the terms of the second grammatical paragraph of Article VI.B.2. (a), shall be charged to and borne as part of the proposed operation, but if the proposal is subsequently withdrawn because of
insufficient participation, such stand-by costs shall be allocated between the Consenting Parties in the proportion each Consenting Party’s interest as shown on Exhibit “A” bears to the total interest as shown on Exhibit “A”
of all Consenting Parties. 
 In the event that notice for a Sidetracking or
Deepening operation is given while the drilling rig to be utilized is on location, any party may request and receive up to five (5) additional days after expiration of the forty-eight hour response period specified in Article VI.B.1. within
which to respond by paying for all stand-by costs and other costs incurred during such extended response period; Operator may require such party to pay the estimated stand-by time in advance as a condition to extending the response period. If more
than one party elects to take such additional time to respond to the notice, standby costs shall be allocated between the parties taking additional time to respond on a day-to-day basis in the proportion each electing party’s interest as shown
on Exhibit “A” bears to the total interest as shown on Exhibit “A” of all the electing parties. 
 4. Deepening:
If less than all parties elect to participate in a drilling, Sidetracking, or Deepening operation proposed pursuant to Article VI.B.1., the interest relinquished by the Non-Consenting Parties to the Consenting Parties under Article VI.B.2. shall
relate only and be limited to the lesser of (i) the total depth actually drilled or (ii) the objective depth or Zone of which the parties were given notice under Article VI.B.1. (“Initial Objective”). Such well shall not be
Deepened beyond the Initial Objective without first complying with this Article to afford the Non-Consenting Parties the opportunity to participate in the Deepening operation. 

In the event any Consenting Party desires to drill or Deepen a Non-Consent Well to a depth below the Initial Objective, such party shall give
notice thereof, complying with the requirements of Article VI.B.1., to all parties (including Non- Consenting Parties). Thereupon, Articles VI.B.1. and 2. shall apply and all parties receiving such notice shall have the right to participate or not
participate in the Deepening of such well pursuant to said Articles VI.B.1. and 2. If a Deepening operation is approved pursuant to such provisions, and if any Non-Consenting Party elects to participate in the Deepening operation, such
Non-Consenting party shall pay or make reimbursement (as the case may be) of the following costs and expenses (to the extent not already paid or reimbursed (as the case may be) by the
Non-Consenting Party for previous operations in the respective wellbore). 
 (a) If the proposal to Deepen is made prior to the
Completion of such well as a well capable of producing in paying quantities, such Non-Consenting Party shall pay (or reimburse Consenting Parties for, as the case may be) that share of costs and expenses incurred in connection with the drilling of
said well from the surface to the Initial Objective which Non- Consenting Party would have paid had such Non-Consenting Party agreed to participate therein, plus the Non-Consenting Party’s share of the cost of Deepening and of participating in
any further operations on the well in accordance with the other provisions of this Agreement; provided, however, all costs for testing and Completion or attempted Completion of the well incurred by Consenting Parties prior to the point of actual
operations to Deepen beyond the Initial Objective shall be for the sole account of Consenting Parties. 
 (b) If the proposal is made for a
Non-Consent Well that has been previously Completed as a well capable of producing in paying quantities, but is no longer capable of producing in paying quantities, such Non-Consenting Party shall pay (or reimburse Consenting Parties for, as the
case may be) its proportionate share of all costs of drilling, Completing, and equipping said well from the surface to the Initial Objective, calculated in the manner provided in paragraph (a) above, less those costs recouped by the Consenting
Parties from the sale of production from the well. The Non-Consenting Party shall also pay its proportionate share of all costs of re-entering said well. The Non-Consenting Parties’ proportionate part (based on the percentage of such well
Non-Consenting Party would have owned had it previously participated in such Non-Consent Well) of the costs of salvable materials and equipment remaining in the hole and salvable surface equipment used in connection with such well shall be
determined in accordance with Exhibit “C.” If the Consenting Parties have recouped the cost of drilling, Completing, and equipping the well at the time such Deepening operation is conducted, then a Non- Consenting Party may participate in
the Deepening of the well with no payment for costs incurred prior to re-entering the well for Deepening 
 The foregoing shall not imply a
right of any Consenting Party to propose any Deepening for a Non-Consent Well prior to the drilling of such well to its Initial Objective without the consent of the other Consenting Parties as provided in Article VI.F. 

5. Sidetracking: Any party having the right to participate in a proposed Sidetracking operation that does not own an interest in the
affected wellbore at the time of the notice shall, upon electing to participate, tender to the wellbore owners its proportionate share (equal to its interest in the Sidetracking operation) of the value of that portion of the existing wellbore to be
utilized as follows: 
 (a) If the proposal is for Sidetracking an existing dry hole, reimbursement shall be on the basis of the actual
costs incurred in the initial drilling of the well down to the depth at which the Sidetracking operation is initiated. 
 (b) If the
proposal is for Sidetracking a well which has previously produced, reimbursement shall be on the basis of such party’s proportionate share of drilling and equipping costs incurred in the initial drilling of the well down to the depth at which
the Sidetracking operation is conducted, calculated in the manner described in Article VI.B.4(b) above. Such party’s proportionate share of the cost of the well’s salvable materials and equipment down to the depth at which the Sidetracking
operation is initiated shall be determined in accordance with the provisions of Exhibit “C.” 
 6. Order of Preference of
Operations. Except as otherwise specifically provided in this agreement, if any party desires to propose the conduct of an operation that conflicts with and is inconsistent
or incompatible with any operation that is then being conducted or proposed, a proposal that has been made by a party under this Article VI, such party shall have fifteen (15) days from delivery of the initial proposal, in
the case of a proposal to drill a well or to perform an operation on a well where no drilling rig is on location, or twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, from delivery of the initial proposal, if a drilling
rig is on location for the well on which such operation is to be conducted, to deliver to all parties entitled to participate in the proposed operation such party’s alternative proposal, such alternate proposal to contain the same information
required to be included in the initial proposal. Each party receiving such proposals shall elect by delivery of notice to Operator within five (5) days after expiration of the proposal period, or within twenty-four (24) hours (exclusive of
Saturday, Sunday and legal holidays) if a drilling rig is on location for the well that is the subject of the proposals, to participate in one of the competing proposals. Any party not electing within the time required shall be deemed not to have
voted. The proposal receiving the vote of parties owning the largest aggregate percentage interest of the parties voting shall have priority over all other competing proposals; in the case of a tie vote, the

  
 - 8 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 
initial proposal shall prevail. Operator shall deliver notice of such result to all parties entitled to participate in the operation within five (5) days after expiration of the election
period (or within twenty-four (24) hours, exclusive of Saturday, Sunday and legal holidays, if a drilling rig is on location). Each party shall then have two (2) days (or twenty-four (24) hours if a rig is on location)
exclusive of Saturday, Sunday and legal holidays from receipt of such notice to elect by delivery of notice to Operator to participate in such operation or to relinquish interest in the
affected well pursuant to the provisions of Article VI.B.2.; failure by a party to deliver notice within such period shall be deemed an election not to participate in the prevailing proposal.
See also Articles XVI.F & XVI.G. 
 7. Conformity to Spacing Pattern. Notwithstanding the provisions of this
Article VI.B.2. any other provisions herein to the contrary, it is agreed that no wells shall be proposed to be drilled to or Completed in or produced from a Zone
from which a well located elsewhere on the Contract Area is producing without the consent of all parties participating in such producing well, unless such well conforms to the
then-existing any applicable well spacing pattern for such Zone (unless a valid exception is obtained). 

8. Paying Wells. No party shall conduct any Reworking, Deepening, Plugging Back, Completion, Recompletion, or Sidetracking operation
under this agreement with respect to any well then capable of producing in paying quantities except with the consent of all parties that have not relinquished interests in the well at the time of such operation. 

C. Completion of Wells; Reworking and Plugging Back: 

1. Completion: Without the consent of all parties, no well shall be drilled, Deepened or Sidetracked, except any well drilled, Deepened
or Sidetracked pursuant to the provisions of Article VI.B.2. of this agreement. Consent to the drilling, Deepening or Sidetracking shall include:  

 

	 	☑☐	Option No. 1: With respect to horizontal wells, all All necessary expenditures for the drilling, Deepening or Sidetracking, testing,
Completing and equipping of the well, including necessary tankage and/or surface facilities. 

  

	 	☑	Option No. 2: With respect to vertical wells, all All necessary expenditures for the drilling, Deepening or Sidetracking and testing of
the well. When such well has reached its authorized depth, and all logs, cores and other tests have been completed, and the results thereof furnished made available to the
parties, Operator shall give immediate notice to the Non-Operators having the right to participate in a Completion attempt whether or not Operator recommends attempting to Complete the well, together with Operator’s AFE for Completion costs if
not previously provided. The parties receiving such notice shall have forty-eight (48) hours (exclusive of Saturday, Sunday and legal holidays) in which to elect by delivery of notice to Operator to participate in a recommended Completion
attempt or to make a Completion proposal with an accompanying AFE. Operator shall deliver any such Completion proposal, or any Completion proposal conflicting with Operator’s proposal, to the other parties entitled to participate in such
Completion in accordance with the procedures specified in Article VI.B.6. Election to participate in a Completion attempt shall include consent to all necessary expenditures for the Completing and equipping of such well, including necessary tankage
and/or surface facilities but excluding any stimulation operation not contained on the Completion AFE. Failure of any party receiving such notice to reply within the period above fixed shall constitute an election by that party not to participate in
the cost of the Completion attempt; provided, that Article VI.B.6. shall control in the case of conflicting Completion proposals. If one or more, but less than all of the parties, elect to attempt a Completion, the provision of Article VI.B.2.
hereof (the phrase “Reworking, Sidetracking, Deepening, Recompleting or Plugging Back” as contained in Article VI.B.2. shall be deemed to include “Completing”) shall apply to the operations thereafter conducted by less than all
parties; provided, however, that Article VI.B.2. shall apply separately to each separate Completion or Recompletion attempt undertaken hereunder, and an election to become a Non-Consenting Party as to one Completion or Recompletion attempt shall not
prevent a party from becoming a Consenting Party in subsequent Completion or Recompletion attempts regardless whether the Consenting Parties as to earlier Completions or Recompletion have recouped their costs pursuant to Article VI.B.2.; provided
further, that any recoupment of costs by a Consenting Party shall be made solely from the production attributable to the Zone in which the Completion attempt is made. Election by a previous Non-Consenting party to participate in a subsequent
Completion or Recompletion attempt shall require such party to pay its proportionate share of the cost of salvable materials and equipment installed in the well pursuant to the previous Completion or Recompletion attempt, insofar and only insofar as
such materials and equipment benefit the Zone in which such party participates in a Completion attempt. 

 2. Rework,
Recomplete or Plug Back: No well shall be Reworked, Recompleted or Plugged Back except a well Reworked, Recompleted, or Plugged Back pursuant to the provisions of Article VI.B.2. of this agreement. Consent to the Reworking, Recompleting or
Plugging Back of a well shall include all necessary expenditures in conducting such operations and Completing and equipping of said well, including necessary tankage and/or surface facilities. 

D. Other Operations: 
 Operator shall not
undertake any single project reasonably estimated to require an expenditure in excess of Twenty-Five Thousand Dollars ($ 25,000 )
except in connection with the drilling, Sidetracking, Reworking, Deepening, Completing, Recompleting or Plugging Back of a well that has been previously authorized by or pursuant to this agreement; provided, however, that, in case of explosion,
fire, flood or other sudden emergency, whether of the same or different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property but Operator, as promptly
as possible, shall report the emergency to the other parties. If Operator prepares an AFE for its own use, Operator shall furnish any Non-Operator so requesting an information copy thereof for any single project costing in excess of
Twenty-Five Thousand Dollars ($ 25,000 ). Any party who has not relinquished its interest in a well shall have the right to
propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal wells or to conduct additional work with respect to a well drilled hereunder or other
similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably estimated to require an
expenditure in excess of the amount first set forth above in this Article VI.D. (except in connection with an operation required to be proposed under Articles VI.B.1. or VI.C.1. Option No. 2, which shall be governed exclusively be those
Articles). Operator shall deliver such proposal to all parties entitled to participate therein. If within thirty (30) days thereof Operator secures the written consent of any party or if
there are more than two (2) parties, any two (2) unaffiliated parties owning at least 65% of the interests of the parties entitled to participate in such operation, each party
having the right to participate in such project shall be bound by the terms of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of
the proposal. 
 E. Abandonment of Wells: 

1. Abandonment of Dry Holes: Except for any well drilled, Sidetracked or
Deepened pursuant to Article VI.B.2., any well which has been drilled, Sidetracked or Deepened under the terms of this agreement and is proposed to be completed as a dry hole shall not be

  
 - 9 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 
plugged and abandoned without the consent of all parties. Should Operator, after diligent effort, be unable to contact any party, or should any party fail to reply within forty-eight
(48) hours (exclusive of Saturday, Sunday and legal holidays) after delivery of notice of the proposal to plug and abandon such well, such party shall be deemed to have consented to the proposed abandonment. All such wells shall be plugged and
abandoned in accordance with applicable regulations and at the cost, risk and expense of the parties who participated in the cost of drilling, Sidetracking or Deepening such well. Any party
who objects to plugging and abandoning such well by notice delivered to Operator within forty-eight (48) hours (exclusive of Saturday, Sunday and legal holidays) after delivery of notice of the proposed plugging shall take over the well as of
the end of such forty-eight (48) hour notice period and conduct further operations in search of Oil and/or Gas subject to the provisions of Article VI.B.; failure of such party to provide proof reasonably satisfactory to Operator of its
financial and technical capability to (a) conduct such operations or to take over the well within such period or
and (b) thereafter to conduct operations on such well or plug and abandon such well shall entitle Operator to retain or take possession of the well and plug and abandon the
well. The non-abandoning party taking over the well shall indemnify Operator (if Operator is an abandoning party) and the other abandoning parties against liability for any further
operations conducted on such well except for the costs of plugging and abandoning the well and restoring the surface (insofar as those costs were not increased by the subsequent operations of
the non-abandoning parties), for which the abandoning parties shall remain proportionately liable. 
 2. Abandonment of Wells That
Have Produced: Except for any well in which a Non-Consent operation has been conducted hereunder for which the Consenting Parties have not been fully reimbursed as herein provided, any well which has been completed as a producer shall not be
plugged and abandoned without the consent of all parties who own a working interest in the well. If all parties who own a working
interest in such well consent to such abandonment, the well shall be plugged and abandoned in accordance with applicable regulations and at the cost, risk and expense of all the parties hereto. Failure of a party to reply within sixty
(60) days of delivery of notice of proposed abandonment shall be deemed an election to consent to the proposal. If, within sixty (60) days after delivery of notice of the proposed abandonment of any well, all parties
who own a working interest in such well do not agree to the abandonment of such well, those wishing to continue its operation from the Zone then open to production shall be obligated to
take over the well as of the expiration of the applicable notice period and shall indemnify Operator (if Operator is an abandoning party) and the other abandoning parties against liability for any further operations
with respect to the well, including costs of plugging and abandoning the well and restoring the surface on the well conducted by such parties. Failure of such party or
parties to provide proof reasonably satisfactory to Operator of their financial and technical capability to conduct such operations or to take over the well within the required period
or and thereafter to conduct operations on such well shall entitle oOperator to retain or take
possession of such well and plug and abandon the well. 
 Parties taking over a well as provided
in this Article VI.E. herein shall tender to each of the other parties its proportionate share of the value of the well’s salvable material and equipment, determined
in accordance with the provisions of Exhibit “C,” less the estimated cost of salvaging and the estimated cost of plugging and abandoning and restoring the surface; provided, however, that in the event the estimated plugging and abandoning
and surface restoration costs and the estimated cost of salvaging are higher than the value of the well’s salvable material and equipment, each of the abandoning parties shall tender to the parties continuing operations their proportionate
shares of the estimated excess cost. Each abandoning party shall assign to the non-abandoning parties, without warranty, express or implied, as to title or as to quantity, or fitness for use of the equipment and material, all of its interest in the
wellbore of the well and related equipment, together with its interest in the Leasehold insofar and only insofar as such Leasehold covers the right to obtain production from that wellbore in the Zone then open to production. If the interest of the
abandoning party is or includes and Oil and Gas Interest, such party shall execute and deliver to the non- abandoning party or parties an oil and gas lease, limited to the wellbore and the Zone then open to production, for a term of
one (1) year and so long thereafter as Oil and/or Gas is produced from the Zone covered thereby, such lease to be on a mutually agreed form.the form attached as
Exhibit “B.” The assignments or leases so limited shall encompass the Drilling Unit upon which the well is located. The payments by, and the assignments or leases to, the assignees shall be in a ratio based upon
the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the Contract Area of all assignees. There shall be no readjustment of interests in the remaining portions
of the Contract Area. 
 Thereafter, abandoning parties shall have no further responsibility, liability, or interest in the operation of or
production from the well in the Zone then open other than the royalties retained in any lease made under the terms of this Article. Upon request, Operator shall continue to operate the assigned well for the account of the non-abandoning parties at
the rates and charges contemplated by this agreement, plus any additional cost and charges which may arise as the result of the separate ownership of the assigned well. Upon proposed abandonment of the producing Zone assigned or leased, the assignor
or lessor shall then have the option to repurchase its prior interest in the well (using the same valuation formula) and participate in further operations therein subject to the provisions hereof. 

                3. Abandonment of Non-Consent Operations: The
provisions of Article VI.E.1. or VI.E.2. above shall be applicable as between Consenting Parties in the event of the proposed abandonment of any well excepted from said Articles; provided, however, no well shall be permanently plugged and abandoned
unless and until all parties having the right to conduct further operations therein have been notified of the proposed abandonment and afforded the opportunity to elect to take over the well in accordance with the provisions of this Article VI.E.;
and provided further, that Non-Consenting Parties who elect to take over own an interest in a portion of the well shall pay
become liable for their proportionate shares of abandonment and surface restoration cost for such well as provided in Article
VI.B.2.(b), insofar as those costs were not increased by the subsequent operations of the non-abandoning parties. If Operator does not receive a written response from any Non-Operator within
sixty (60) days after delivering notice of a proposed abandonment to such Non-Operator, then such Non-Operator shall be deemed to have consented to the proposal. 

F. Termination of Operations: 
 Upon the
commencement of an operation for the drilling, Reworking, Sidetracking, Plugging Back, Deepening, testing, Completion or plugging of a well, including but not limited to the Initial Well, such operation shall not be terminated
without consent of two (2) unaffiliated parties bearing at least
65% of the costs of such operation; provided, however, that in the event granite or other practically impenetrable substance or condition in the hole is encountered which renders further
operations impractical, Operator may discontinue operations and give notice of such condition in the manner provided in Article VI.B.1, and the provisions of Article VI.B. or VI.E. shall thereafter apply to such operation, as appropriate. 

  
 - 10 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 G. Taking Production in Kind:  

 

	 	☑	Option No. 1: Gas Balancing Agreement Attached  

 Each party shall
have the right to take in kind or separately dispose of its proportionate share of all Oil and Gas produced from the Contract Area, exclusive
of (a) production which may be used in development and producing operations and in preparing and treating Oil and Gas for marketing purposes and
(b) production unavoidably lost. Any extra expenditure incurred in the taking in kind or separate disposition by any party of its proportionate share of the production shall be borne
by such party. Any party taking its share of production in kind shall be required to pay for only its proportionate share of such part of Operator’s surface facilities which it uses, to
the extent such party has not paid its proportionate share of the costs to build such facilities. 
 Each party shall
execute such division orders and contracts as may be necessary for the sale of its interest in production from the Contract Area, and, except as provided in Article VII.B., shall be entitled to receive payment directly from the purchaser thereof for
its share of all production. 

  
 - 11 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 If any party fails to make the arrangements necessary to take in kind or
separately dispose of its proportionate share of the Oil or Gas produced from the Contract Area, Operator shall have the right,
subject to the revocation at will by the party owning it, but not the obligation, to purchase such Oil or Gas or sell it to others at any time and from time to time, for the account of the
non-taking party. Any such purchase or sale by Operator may be terminated by Operator upon at least ten thirty
(1 30) days written notice to the owner of said production and shall be subject always to the right of the owner of the production upon at least
ten thirty (1 30) days written notice to Operator to exercise at any time its right to take in
kind, or separately dispose of, its share of all Oil or Gas not previously delivered to a purchaser. Any purchase or sale by Operator of any other party’s share of Oil
or Gas shall be only for such reasonable periods of time as are consistent with the minimum needs of the industry under the particular circumstances, but in no event for a period in excess
of one (1) year. 
 Any such sale by Operator shall be in a manner commercially reasonable under the circumstances but
Operator shall have no duty to share any existing market or to obtain a price equal to that received under any existing market. The sale or delivery by Operator of a non-taking party’s share of Oil
or Gas under the terms of any existing contract of Operator shall not give the non-taking party any interest in or make the non-taking party a party to said contract. No purchase shall be
made by Operator without first giving the non-taking party at least ten thirty (310) days
written notice of such intended purchase and the price to be paid or the pricing basis to be used. 
 All parties shall give
timely written notice to Operator of their Oil and Gas marketing arrangements for the following month, excluding price, and shall notify Operator immediately in the event of a change in
such arrangements. Operator shall maintain records of all marketing arrangements, and of volumes actually sold or transported, which records shall be made available to Non-Operators upon reasonable request. 

In the event one or more parties’ separate disposition of its share of the Gas causes split-stream deliveries to separate
pipelines and/or deliveries which on a day-to-day basis for any reason are not exactly equal to a party’s respective proportion- ate share of total Gas sales to be allocated to it, the balancing or accounting between the parties shall be in
accordance with any Gas balancing agreement between the parties hereto, whether such an agreement is attached as Exhibit “E”or is a separate
agreement hereto. Operator shall give notice to all parties of the first sales of Gas from any well under this agreement.  

☐
Option No. 2: No Gas Balancing Agreement: 

Each party shall take in kind or separately dispose of its proportionate share of all Oil and Gas produced from the Contract Area,
exclusive of production which may be used in development and producing operations and in preparing and treating Oil and Gas for marketing purposes and production unavoidably lost. Any extra expenditures incurred in the taking in kind or separate
disposition by any party of its proportionate share of the production shall be borne by such party. Any party taking its share of production in kind shall be required to pay for only its proportionate share of such part of Operator’s surface
facilities which it uses. 
 Each party shall execute such division orders and contracts as may be necessary for the sale
of its interest in production from the Contract Area, and, except as provided in Article VII.B., shall be entitled to receive payment directly from the purchaser thereof for its share of all production. 

If any party fails to make the arrangements necessary to take in kind or separately dispose of its proportionate share of the Oil
and/or Gas produced from the Contract Area, Operator shall have the right, subject to the revocation at will by the party owning it, but not the obligation, to purchase such Oil and/or Gas or sell it to others at any time and from time to time, for
the account of the non-taking party. Any such purchase or sale by Operator may be terminated by Operator upon at least ten (10) days written notice to the owner of said production and shall be subject always to the right of the owner of the
production upon at least ten (10) days written notice to Operator to exercise its right to take in kind, or separately dispose of, its share of all Oil and/or Gas not previously delivered to a purchaser; provided, however, that the effective
date of any such revocation may be deferred at Operator’s election for a period not to exceed ninety (90) days if Operator has committed such production to a purchase contract having a term extending beyond such ten (10) -day period.
Any purchase or sale by Operator of any other party’s share of Oil and/or Gas shall be only for such reasonable periods of time as are consistent with the minimum needs of the industry under the particular circumstances, but in
no event for a period in excess of one (1) year. 
 Any such sale by Operator shall be in a manner commercially
reasonable under the circumstances, but Operator shall have no duty to share any existing market or transportation arrangement or to obtain a price or transportation fee equal to that received under any existing market or transportation arrangement.
The sale or delivery by Operator of a non-taking party’s share of production under the terms of any existing contract of Operator shall not give the non-taking party any interest in or make the non-taking party a party to said contract. No
purchase of Oil and Gas and no sale of Gas shall be made by Operator without first giving the non-taking party ten days written notice of such intended purchase or sale and the price to be paid or the pricing basis to be used. Operator shall give
notice to all parties of the first sale of Gas from any well under this Agreement. 
         All
parties shall give timely written notice to Operator of their Gas marketing arrangements for the following month, excluding price, and shall notify Operator immediately in the event of a change in such arrangements. Operator shall maintain records
of all marketing arrangements, and of volumes actually sold or transported, which records shall be made available to Non-Operators upon reasonable request. 

ARTICLE VII. 

EXPENDITURES AND LIABILITY OF PARTIES 

A. Liability of Parties: See also ArticleXVI.B, XVI.E. and XVI.M. 

The liability of the parties shall be several, not joint or collective. Each party shall be responsible only for its obligations, and shall be
liable only for its proportionate share of the costs of developing and operating the Contract Area. Accordingly, the liens granted among the parties in Article VII.B. are given to secure only the debts of each severally, and no party shall have any
liability to third parties hereunder to satisfy the default of any other party in the payment of any expense or obligation hereunder. It is not the intention of the parties to create, nor shall this agreement be construed as creating, a mining or
other partnership, joint venture, agency relationship or association, or to render the parties liable as partners, co-venturers, or principals. In their relations with each other under this agreement, the parties shall not be considered fiduciaries
or to have established a confidential relationship but rather shall be free to act on an arm’s-length basis in accordance with their own respective self-interest, subject, however, to the obligation of the parties to act in good faith in their
dealings with each other with respect to activities hereunder. 

  
 - 12 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 B. Liens and Security Interests: 

Each party grants to the other parties hereto a lien upon any interest it now owns or hereafter acquires in Oil and Gas Leases and Oil and Gas
Interests in the Contract Area, and a security interest and/or purchase money security interest in any interest it now owns or hereafter acquires in the personal property and fixtures on or used or obtained for use in connection therewith, to secure
performance of all of its obligations under this agreement including but not limited to payment of expense, interest and fees, the proper disbursement of all monies paid hereunder, the assignment or relinquishment of interest in Oil and Gas Leases
as required hereunder, and the proper performance of operations hereunder. Such lien and security interest granted by each party hereto shall include such party’s leasehold interests, working interests, operating rights, and royalty and
overriding royalty interests in the Contract Area now owned or hereafter acquired and in lands pooled or unitized therewith or otherwise becoming subject to this agreement, the Oil and Gas when extracted therefrom and equipment situated thereon or
used or obtained for use in connection therewith (including, without limitation, all wells, tools, and tubular goods), and accounts (including, without limitation, accounts arising from gas imbalances or from the sale of Oil and/or Gas at the
wellhead), contract rights, inventory and general intangibles relating thereto or arising therefrom, and all proceeds and products of the foregoing. 

To perfect the lien and security agreement provided herein, each party hereto shall execute and acknowledge the recording supplement and/or
any financing statement prepared and submitted by any party hereto in conjunction herewith or at any time following execution hereof, and Operator is authorized to file this agreement or the recording supplement executed herewith as a lien or
mortgage in the applicable real estate records and as a financing statement with the proper officer under the Uniform Commercial Code in the state in which the Contract Area is situated and such other states as Operator shall deem appropriate to
perfect the security interest granted hereunder. Any party may file this agreement, the recording supplement executed herewith, or such other documents as it deems necessary as a lien or mortgage in the applicable real estate records and/or a
financing statement with the proper officer under the Uniform Commercial Code. 
 Each party represents and warrants to the other parties
hereto that the lien and security interest granted by such party to the other parties shall be a first and prior lien, and each party hereby agrees to maintain the priority of said lien and security interest against all persons acquiring an interest
in Oil and Gas Leases and Interests covered by this agreement by, through or under such party. All parties acquiring an interest in Oil and Gas Leases and Oil and Gas Interests covered by this agreement, whether by assignment, merger, mortgage,
operation of law, or otherwise, shall be deemed to have taken subject to the lien and security interest granted by this Article VII.B. as to all obligations attributable to such interest hereunder whether or not such obligations arise before or
after such interest is acquired. 
 To the extent that parties have a security interest under the Uniform Commercial Code of the state in
which the Contract Area is situated, they shall be entitled to exercise the rights and remedies of a secured party under the Code. The bringing of a suit and the obtaining of judgment by a party for the secured indebtedness shall not be deemed an
election of remedies or otherwise affect the lien rights or security interest as security for the payment thereof. In addition, upon default by any party in the payment of its share of expenses, interests or fees, or upon the improper use of funds
by the Operator, the other parties shall have the right, without prejudice to other rights or remedies, to collect from the purchaser the proceeds from the sale of such defaulting party’s share of Oil and Gas until the amount owed by such
party, plus interest as provided in “Exhibit C,” has been received, and shall have the right to offset the amount owed against the proceeds from the sale of such defaulting party’s share of Oil and Gas. All purchasers of production
may rely on a notification of default from the non-defaulting party or parties stating the amount due as a result of the default, and all parties waive any recourse available against purchasers for releasing production proceeds as provided in this
paragraph. 
 If any party fails to pay its share of cost within one hundred twenty (120) days after rendition of a statement therefor
by Operator, the non-defaulting parties, including Operator, shall upon request by Operator, pay the unpaid amount in the proportion that the interest of each such party bears to the interest of all such parties. The amount paid by each party so
paying its share of the unpaid amount shall be secured by the liens and security rights described in Article VII.B., and each paying party may independently pursue any remedy available hereunder or otherwise. 

If any party does not perform all of its obligations hereunder, and the failure to perform subjects such party to foreclosure or execution
proceedings pursuant to the provisions of this agreement, to the extent allowed by governing law, the defaulting party waives any available right of redemption from and after the date of judgment, any required valuation or appraisement of the
mortgaged or secured property prior to sale, any available right to stay execution or to require a marshaling of assets and any required bond in the event a receiver is appointed. In addition, to the extent permitted by applicable law, each party
hereby grants to the other parties a power of sale as to any property that is subject to the lien and security rights granted hereunder, such power to be exercised in the manner provided by applicable law or otherwise in a commercially reasonable
manner and upon reasonable notice. 
         Each party agrees that the other parties shall be entitled to utilize
the provisions of Oil and Gas lien law or other lien law of any state in which the Contract Area is situated to enforce the obligations of each party hereunder. Without limiting the generality of the foregoing, to the extent permitted by applicable
law, Non-Operators agree that Operator may invoke or utilize the mechanics’ or materialmen’s lien law of the state in which the Contract Area is situated in order to secure the payment to Operator of any sum due hereunder for services
performed or materials supplied by Operator. 
 C. Advances:  

Operator, at its election, shall have the right from time to time to demand and receive from one or more of the other parties payment in
advance of their respective shares of the estimated amount of the expense to be incurred in operations hereunder during the next succeeding month, which right may be exercised only by submission to each such party of an itemized statement of such
estimated expense, together with an invoice for its share thereof. Each such statement and invoice for the payment in advance of estimated expense shall be submitted on or before the 20th day of the next preceding month. Each party shall pay to
Operator its proportionate share of such estimate within fifteen (15) days after such estimate and invoice is received. If any party fails to pay its share of said estimate within said time,
then such party shall be subject to Article VII.D. and any other remedies provided for in this agreement, and the amount due shall bear interest as provided in Exhibit “C” until
paid. Proper adjustment shall be made monthly between advances and actual expense to the end that each party shall bear and pay its proportionate share of actual expenses incurred, and no more. 

D. Defaults and Remedies: 
 If any party
fails to discharge any financial obligation under this agreement, including without limitation the failure to make any advance under the preceding Article VII.C. or any other provision of this agreement, within the period required for such payment
hereunder, then in addition to the remedies provided in Article VII.B. or elsewhere in this agreement, the remedies specified below shall be applicable. For purposes of this Article VII.D., all notices and elections shall be delivered

  
 - 13 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 
only by Operator, except that Operator shall deliver any such notice and election requested by a non-defaulting Non-Operator, and when Operator is the party in default, the applicable notices and
elections can be delivered by any Non-Operator. Election of any one or more of the following remedies shall not preclude the subsequent use of any other remedy specified below or otherwise available to a non-defaulting
party. No party shall be in default to the extent it is exercising its rights under Article I.3B of Exhibit C to this agreement.  

1. Suspension of Rights: Any party may deliver to the party in default a Notice of Default, which shall specify the default, specify
the action to be taken to cure the default, and specify that failure to take such action will result in the exercise of one or more of the remedies provided in this Article. If the default is not cured within thirty (30) days of the delivery of
such Notice of Default, all of the rights of the defaulting party granted by this agreement may upon notice be suspended until the default is cured, without prejudice to the right of the non-defaulting party or parties to continue to enforce the
obligations of the defaulting party previously accrued or thereafter accruing under this agreement. If Operator is the party in default, the Non-Operators shall have in addition the right, by vote of Non-Operators owning a majority in interest in
the Contract Area after excluding the voting interest of Operator, to appoint a new Operator effective immediately. The rights of a defaulting party that may be suspended hereunder at the election of the non-defaulting parties shall include, without
limitation, the right to receive information as to any operation conducted hereunder during the period of such default, the right to elect to participate in an operation proposed under Article VI.B. of this agreement, the right to participate in an
operation being conducted under this agreement even if the party has previously elected to participate in such operation, and the right to receive proceeds of production from any well subject to this agreement. 

2. Suit for Damages: Non-defaulting parties or Operator for the benefit of non-defaulting parties may sue (at joint account expense) to
collect the amounts in default, plus interest accruing on the amounts recovered from the date of default until the date of collection at the rate specified in Exhibit “C” attached hereto. Nothing herein shall prevent any party from suing
any defaulting party to collect consequential damages accruing to such party as a result of the default. 
 3. Deemed Non-Consent:
The non-defaulting party may deliver a written Notice of Non-Consent Election to the defaulting party at any time after the expiration of the thirty-day cure period following delivery of the Notice of Default, in which event if the billing is for
the drilling a new well or the Plugging Back, Sidetracking, Reworking or Deepening of a well which is to be or has been plugged as a dry hole, or for the Completion or Recompletion of any well, the defaulting party will be conclusively deemed to
have elected not to participate in the operation and to be a Non-Consenting Party with respect thereto under Article VI.B. or VI.C., as the case may be, to the extent of the costs unpaid by such party, notwithstanding any election to participate
theretofore made. If election is made to proceed under this provision, then the non-defaulting parties may not elect to sue for the unpaid amount pursuant to Article VII.D.2. 

Until the delivery of such Notice of Non-Consent Election to the defaulting party, such party shall have the right to cure its default by
paying its unpaid share of costs plus interest at the rate set forth in Exhibit “C,” provided, however, such payment shall not prejudice the rights of the non-defaulting parties to pursue remedies for damages incurred by the non-
defaulting parties as a result of the default. Any interest relinquished pursuant to this Article VII.D.3. shall be offered to the non-defaulting parties in proportion to their interests, and the non-defaulting parties electing to participate in the
ownership of such interest shall be required to contribute their shares of the defaulted amount upon their election to participate therein. 

4. Advance Payment: If a default is not cured within thirty (30) days of the delivery of a Notice of Default, Operator, or
Non-Operators if Operator is the defaulting party, may thereafter require advance payment from the defaulting party of such defaulting party’s anticipated share of any item of expense for which Operator, or Non-Operators, as the case may be,
would be entitled to reimbursement under any provision of this agreement, whether or not such expense was the subject of the previous default. Such right includes, but is not limited to, the right to require advance payment for the estimated costs
of drilling a well or Completion of a well as to which an election to participate in drilling or Completion has been made. If the defaulting party fails to pay the required advance payment, the non-defaulting parties may pursue any of the remedies
provided in the Article VII.D. or any other default remedy provided elsewhere in this agreement. Any excess of funds advanced remaining when the operation is completed and all costs have been paid shall be promptly returned to the advancing party.

 5. Costs and Attorneys’ Fees: In the event any party is required to bring legal proceedings to enforce any financial
obligation of a party hereunder, the prevailing party in such action shall be entitled to recover all court costs, costs of collection, and a reasonable attorney’s fee, which the lien provided for herein shall also secure. 

E. Rentals, Shut-in Well Payments and Minimum Royalties: 

        Rentals, shut-in well payments and minimum royalties which may be required under the terms of any lease shall
be paid by the party or parties who subjected such lease to this agreement at its or their expense. In the event two or more parties own and have contributed interests in the same lease to this agreement, such parties may designate one of such
parties to make said payments for and on behalf of all such parties. Any party may request, and shall be entitled to receive, proper evidence of all such payments. In the event of failure to make proper payment of any rental, shut-in well payment or
minimum royalty through mistake or oversight where such payment is required to continue the lease in force, any loss which results from such non-payment shall be borne in accordance with the provisions of Article
IV.B.32. 
 Operator shall notify Non-Operators of the
anticipated completion of a shut-in well, or the shutting in or return to production of a producing well, at least five (5) days (excluding Saturday, Sunday, and legal holidays) prior to taking such action, or at the earliest opportunity
permitted by circumstances, but assumes no liability for failure to do so. In the event of failure by Operator to so notify Non-Operators, the loss of any lease contributed hereto by Non-Operators for failure to make timely payments of any shut-in
well payment shall be borne jointly by the parties hereto under the provisions of Article IV.B.3. 
 F.
Taxes:  
 Beginning with the first calendar year after the effective date
hereof, Operator shall render for ad valorem taxation all property subject to this agreement which by law should be rendered for such taxes, and it shall pay all such taxes assessed thereon before they become delinquent. Prior to the rendition date,
each Non-Operator shall furnish Operator information as to burdens (to include, but not be limited to, royalties, overriding royalties and production payments) on Leases and Oil and Gas Interests contributed by such Non-Operator. If the assessed
valuation of any Lease is reduced by reason of its being subject to outstanding excess royalties, overriding royalties or production payments, the reduction in ad valorem taxes resulting therefrom shall inure to the benefit of the owner or owners of
such Lease, and Operator shall adjust the charge to such owner or owners so as to reflect the benefit of such reduction. If the ad valorem taxes are based in whole or in part upon separate valuations of each party’s working interest, then
notwithstanding anything to the contrary herein, charges to the joint account shall be made and paid by the parties hereto in accordance with the tax value generated by each party’s working interest. Operator shall bill the other parties for
their proportionate shares of all tax payments in the manner provided in Exhibit “C.” 

  
 - 14 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 If Operator considers any tax assessment improper, Operator may, at its discretion, protest
within the time and manner prescribed by law, and prosecute the protest to a final determination, unless all parties agree to abandon the protest prior to final determination. During the pendency of administrative or judicial proceedings, Operator
may elect to pay, under protest, all such taxes and any interest and penalty. When any such protested assessment shall have been finally determined, Operator shall pay the tax for the joint account, together with any interest and penalty accrued,
and the total cost shall then be assessed against the parties, and be paid by them, as provided in Exhibit “C.” 
 Each party
shall pay or cause to be paid all production, severance, excise, gathering and other taxes imposed upon or with respect to the production or handling of such party’s share of Oil and Gas produced under the terms of this agreement. 

ARTICLE VIII. 

ACQUISITION, MAINTENANCE OR TRANSFER OF INTEREST 

A. Surrender of Leases: 
 The Leases
covered by this agreement, insofar as they embrace acreage in the Contract Area, shall not be surrendered in whole or in part unless all parties consent thereto. 

However, should any party desire to surrender its interest in any Lease or in any portion thereof, such party shall give written notice of the
proposed surrender to all parties, and the parties to whom such notice is delivered shall have thirty (30) days after delivery of the notice within which to notify the party proposing the surrender whether they elect to consent thereto. Failure
of a party to whom such notice is delivered to reply within said 30-day period shall constitute a consent to the surrender of the Leases described in the notice. If all parties do not agree or consent thereto, the party desiring to surrender shall
assign, without express or implied warranty of title, all of its interest in such Lease, or portion thereof, and any well, material and equipment which may be located thereon and any rights in production thereafter secured, to the parties not
consenting to such surrender. If the interest of the assigning party is or includes an Oil and Gas Interest, the assigning party shall execute and deliver to the party or parties not consenting to such surrender an oil and gas lease covering such
Oil and Gas Interest for a term of one (1) year and so long thereafter as Oil and/or Gas is produced from the land covered thereby, such lease to be on a mutually acceptable
the form. attached hereto as Exhibit “B.” Upon such assignment or lease, the assigning party shall be relieved from all
obligations thereafter accruing, but not theretofore accrued, with respect to the interest assigned or leased and the operation of any well attributable thereto, and the assigning party shall have no further interest in the assigned or leased
premises and its equipment and production other than the royalties retained in any lease made under the terms of this Article. The party assignee or lessee shall pay to the party assignor or lessor the reasonable salvage value of the latter’s
interest in any well’s salvable materials and equipment attributable to the assigned or leased acreage. The value of all salvable materials and equipment shall be determined in accordance with the provisions of Exhibit “C,” less the
estimated cost of salvaging and the estimated cost of plugging and abandoning and restoring the surface. If such value is less than such costs, then the party assignor or lessor shall pay to the party assignee or lessee the amount of such deficit.
If the assignment or lease is in favor of more than one party, the interest shall be shared by such parties in the proportions that the interest of each bears to the total interest of all such parties. If the interest of the parties to whom the
assignment is to be made varies according to depth, then the interest assigned shall similarly reflect such variances. 
 Any assignment,
lease or surrender made under this provision shall not reduce or change the assignor’s, lessor’s or surrendering party’s interest as it was immediately before the assignment, lease or surrender in the balance of the Contract Area; and
the acreage assigned, leased or surrendered, and subsequent operations thereon, shall not thereafter be subject to the terms and provisions of this agreement but shall be deemed subject to an Operating Agreement
identical to in the form of this agreement and modified only to reflect the ownership of the acquiring parties and
their respective interests. 
 B. Renewal or Extension of Leases: 

If any party secures a renewal or replacement of an Oil and Gas Lease or Interest subject to this agreement, then all other parties shall be
notified promptly upon such acquisition or, in the case of a replacement Lease taken before expiration of an existing Lease, promptly upon expiration of the existing Lease. The parties notified shall have the right for a period of thirty
(30) days following delivery of such notice in which to elect to participate in the ownership of the renewal or replacement Lease, insofar as such Lease affects lands within the Contract Area, by paying to the party who acquired it their
proportionate shares of the acquisition cost allocated to that part of such Lease within the Contract Area, which shall be in proportion to the interest held at that time by the parties in the Contract Area. Each party who participates in the
purchase of a renewal or replacement Lease shall be given an assignment of its proportionate interest therein by the acquiring party, without warranty of title, except as to acts by, through or
under the acquiring party.. 

        If some, but less than all, of the parties elect to participate in the purchase of a renewal or replacement
Lease, it shall be owned by the parties who elect to participate therein, in a ratio based upon the relationship of their respective percentage of participation in the Contract Area to the aggregate of the percentages of participation in the
Contract Area of all parties participating in the purchase of such renewal or replacement Lease. The acquisition of a renewal or replacement Lease by any or all of the parties hereto shall not cause a readjustment of the interests of the parties
stated in Exhibit “A,” but any renewal or replacement Lease in which less than all parties elect to participate shall not be subject to this agreement but shall be deemed subject to a separate Operating Agreement
identical to in the form of this agreement and modified only to reflect the ownership of the acquiring party and
their respective interests. 
 If the interests of the parties in the Contract Area vary according to depth, then their right to
participate proportionately in renewal or replacement Leases and their right to receive an assignment of interest shall also reflect such depth variances. 

The provisions of this Article shall apply to renewal or replacement Leases whether they are for the entire interest covered by the expiring
Lease or cover only a portion of its area or an interest therein. Any renewal or replacement Lease taken before the expiration of its predecessor Lease, or taken or contracted for or becoming effective within six (6) months after the expiration
of the existing Lease, shall be subject to this provision so long as this agreement is in effect at the time of such acquisition or at the time the renewal or replacement Lease becomes effective; but any Lease taken or contracted for more than six
(6) months after the expiration of an existing Lease shall not be deemed a renewal or replacement Lease and shall not be subject to the provisions of this agreement. 

The provisions in this Article shall also be applicable to extensions of Oil and Gas Leases. 

C. Acreage or Cash Contributions: 
 While
this agreement is in force, if any party contracts for receives a contribution of cash towards the drilling of a well or any other operation on the
Contract Area, such contribution shall be paid to the party who conducted the drilling or other operation and shall be applied by it against the cost of such drilling or other operation. If the contribution be in the form of acreage, the party to
whom the contribution is made shall promptly tender an assignment of the acreage, without warranty of title, to the Drilling Parties in the proportions said Drilling Parties shared the cost of drilling the well. Such acreage shall become a separate
Contract Area and, to the extent possible, be governed by provisions identical to this agreement. Each party shall promptly notify all other parties of any acreage or cash contributions it may obtain in support of any well or any other operation on
the Contract Area. The above provisions shall also be applicable to optional rights to earn acreage outside the Contract Area which are in support of well drilled inside the Contract Area.

  
 - 15 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 If any party contracts for any consideration relating to disposition of such party’s
share of substances produced hereunder, such consideration shall not be deemed a contribution as contemplated in this Article VIII.C. 
 D.
Assignment; Maintenance of Uniform Interest: See also Articles XVI.S & XVI.W. 

For the purpose of maintaining uniformity of ownership in the Contract Area in the Oil and Gas Leases, Oil and Gas Interests, wells,
equipment and production covered by this agreement no party shall sell, encumber, transfer or make other disposition of its interest in the Oil and Gas Leases and Oil and Gas Interests embraced within the Contract Area or in wells, equipment and
production unless such disposition covers either: 
 1. the entire interest of the party in all Oil and Gas Leases, Oil and
Gas Interests, wells, equipment and production; or 
 2. an equal undivided percent of the party’s present interest in
all Oil and Gas Leases, Oil and Gas Interests, wells, equipment and production in the Contract Area. 
 Every sale, encumbrance,
transfer or other disposition made by any party shall be made expressly subject to this agreement and shall be made without prejudice to the right of the other parties, and any transferee of an ownership interest in any Oil and Gas Lease or Interest
shall be deemed a party to this agreement as to the interest conveyed from and after the effective date of the transfer of ownership; provided, however, that the other parties shall not be required to recognize any such sale, encumbrance, transfer
or other disposition for any purpose hereunder until thirty (30) days after they have received a copy of the instrument of transfer or other satisfactory evidence thereof in writing from the transferor or transferee. No assignment or other
disposition of interest by a party shall relieve such party of obligations previously incurred by such party hereunder with respect to the interest transferred, including without limitation the obligation of a party to pay all costs attributable to
an operation conducted hereunder in which such party has agreed to participate prior to making such assignment, and the lien and security interest granted by Article VII.B. shall continue to burden the interest transferred to secure payment of any
such obligations. 
 If, at any time the interest of any party is divided among and owned by four or more co-owners, Operator, at its
discretion, may require such co-owners to appoint a single trustee or agent with full authority to receive notices, approve expenditures, receive billings for and approve and pay such party’s share of the joint expenses, and to deal generally
with, and with power to bind, the co-owners of such party’s interest within the scope of the operations embraced in this agreement; however, all such co-owners shall have the right to enter into and execute all contracts or agreements for the
disposition of their respective shares of the Oil and Gas produced from the Contract Area and they shall have the right to receive, separately, payment of the sale proceeds thereof. 

E. Waiver of Rights to Partition: 
 If
permitted by the laws of the state or states in which the property covered hereby is located, each party hereto owning an undivided interest in the Contract Area waives any and all rights it may have to partition and have set aside to it in
severalty its undivided interest therein. 
 F. Preferential Right to Purchase: 

☐ (Optional; Check if applicable.) 

Should any party desire to sell all or any part of its interests under this agreement, or its rights and interests in the Contract
Area, it shall promptly give written notice to the other parties, with full information concerning its proposed disposition, which shall include the name and address of the prospective transferee (who must be ready, willing and able to purchase),
the purchase price, a legal description sufficient to identify the property, and all other terms of the offer. The other parties shall then have an optional prior right, for a period of ten (10) days after the notice is delivered, to purchase
for the stated consideration on the same terms and conditions the interest which the other party proposes to sell; and, if this optional right is exercised, the purchasing parties shall share the purchased interest in the proportions that the
interest of each bears to the total interest of all purchasing parties. However, there shall be no preferential right to purchase in those cases where any party wishes to mortgage its interests, or to transfer title to its interests to its mortgagee
in lieu of or pursuant to foreclosure of a mortgage of its interests, or to dispose of its interests by merger, reorganization, consolidation, or by sale of all or substantially all of its Oil and Gas assets to any party, or by transfer of its
interests to a subsidiary or parent company or to a subsidiary of a parent company, or to any company in which such party owns a majority of the stock. 

ARTICLE IX. 
 INTERNAL
REVENUE CODE ELECTION 
 If, for federal income tax purposes, this agreement and the operations hereunder are regarded as a partnership,
and if the parties have not otherwise agreed to form a tax partnership pursuant to Exhibit “G” or other agreement between them, each party thereby affected elects to be excluded from the application of all of the provisions of Subchapter
“K,” Chapter 1, Subtitle “A,” of the Internal Revenue Code of 1986, as amended (“Code”), as permitted and authorized by Section 761 of the Code and the regulations promulgated thereunder. Operator is authorized and
directed to execute on behalf of each party hereby affected such evidence of this election as may be required by the Secretary of the Treasury of the United States or the Federal Internal Revenue Service, including specifically, but not by way of
limitation, all of the returns, statements, and the data required by Treasury Regulation §1.761. Should there be any requirement that each party hereby affected give further evidence of this election, each such party shall execute such
documents and furnish such other evidence as may be required by the Federal Internal Revenue Service or as may be necessary to evidence this election. No such party shall give any notices or take any other action inconsistent with the election made
hereby. If any present or future income tax laws of the state or states in which the Contract Area is located or any future income tax laws of the United States contain provisions similar to those in Subchapter “K,” Chapter 1, Subtitle
“A,” of the Code, under which an election similar to that provided by Section 761 of the Code is permitted, each party hereby affected shall make such election as may be permitted or required by such laws. In making the foregoing
election, each such party states that the income derived by such party from operations hereunder can be adequately determined without the computation of partnership taxable income. 

  
 - 16 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 ARTICLE X. 

CLAIMS AND LAWSUITS 

Operator may settle any single uninsured third party damage claim or suit arising from operations hereunder if the expenditure does not exceed
Fifty Thousand Dollars ($
50,000 ) and if the payment is in complete settlement of such claim or suit. If the amount required for settlement exceeds the above amount, the parties hereto shall assume and take
over the further handling of the claim or suit, unless such authority is delegated to Operator by the affirmative vote of two (2) or more parties owning a majority interest based on
ownership as shown on Exhibit “A”(or if there are only two (2) parties, on the affirmative vote of the party owning a majority interest as shown on Exhibit “A”(which, for this purpose shall be calculated to include the
interest of a party’s affiliate)). All costs and expenses of handling settling, or otherwise discharging such claim or suit shall be at the joint expense of the parties participating in the operation from which the claim or suit arises. If
a claim is made against any party or if any party is sued on account of any matter arising from operations hereunder over which such individual has no control because of the rights given Operator by this agreement, such party shall immediately
notify all other parties, and the claim or suit shall be treated as any other claim or suit involving operations hereunder. Operator shall notify all parties hereto of any material claims or
suits initiated by or threatened in writing by a third party for which the parties hereto may be reasonably expected to collectively incur expenditures in excess of Fifty Thousand Dollars ($50,000).  

ARTICLE XI. 
 FORCE
MAJEURE 
 If any party is rendered unable, wholly or in part, by force majeure to carry out its obligations under this agreement, other
than the obligation to indemnify or make money payments or furnish security, that party shall give to all other parties prompt written notice of the force majeure with reasonably full particulars concerning it; thereupon, the obligations of the
party giving the notice, so far as they are affected by the force majeure, shall be suspended during, but no longer than, the continuance of the force majeure. The term “force majeure,” as here employed, shall mean an act of God, strike,
lockout, or other industrial disturbance, act of the public enemy, war, blockade, public riot, lightening, fire, storm, flood or other act of nature, explosion, governmental action, governmental delay
restraint or inaction by a governmental authority to the extent not resulting from Operator’s action or inaction, acts of terrorism, changes in law, any hydraulic fracturing or drilling
moratorium, restraint or inaction, unavailability of equipment, and any other cause, whether of the kind specifically enumerated above or otherwise, which is not reasonably within the control of the party claiming
suspension, provided, however, that a lack of funds shall not constitute “force majeure”. 

The affected party shall use all reasonable diligence to remove the force majeure situation as quickly as practicable. The requirement that
any force majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes, lockouts, or other labor difficulty by the party involved, contrary to its wishes; how all such difficulties shall be handled shall be
entirely within the discretion of the party concerned. 
 ARTICLE XII. 

NOTICES 
 All notices
authorized or required between the parties by any of the provisions of this agreement, unless otherwise specifically provided, shall be in writing and delivered in person or by United States mail, courier service,
by email attachment in PDF format (an “Email Notice”), telegram, telex, telecopier or any other form of facsimile, postage or charges
prepaid (as applicable), and addressed to such parties at the addresses listed on Exhibit “A.” All telephone or oral notices permitted by this agreement shall be confirmed
immediately thereafter by written notice. The originating notice given under any provision hereof shall be deemed delivered only when received by the party to whom such notice is directed, and the time for such party to deliver any notice in
response thereto shall run from the date the originating notice is received. “Receipt” for purposes of this agreement with respect to written notice delivered hereunder shall be actual delivery of the notice to the address of the party to
be notified specified in accordance with this agreement, or to the telecopy, facsimile or telex machine of such party. The second or any responsive notice shall be deemed delivered when deposited in the United
States mail or at the office of the courier or telegraph service, or upon transmittal by telex, telecopy or facsimile, or when personally delivered to the party to be notified, provided, that when response is
required within 24 or 48 hours, such response shall be given orally or by telephone, telex, telecopy or other facsimile within such period. Each party shall have the right to change its address at any time, and from time to time, by giving written
notice thereof to all other parties. If a party is not available to receive notice orally or by telephone when a party attempts to deliver a notice required to be delivered within 24 or 48 hours, the notice may be delivered in writing by any other
method specified herein and shall be deemed delivered in the same manner provided above for any responsive notice. Each Email Notice shall clearly state it is a notice or response to a notice
under this agreement. An Email Notice shall be deemed received on the day following delivery of such Email Notice (exclusive of Saturday, Sunday and legal holidays) if no acknowledgment of the Email Notice is received prior to the following day
(exclusive of Saturday, Sunday and legal holidays). Automatic delivery receipts issued, without direct acknowledgment of the email, are not evidence of a receipt for purposes of this agreement.  

  
 - 17 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 ARTICLE XIII. 

TERM OF AGREEMENT 

Unless terminated by mutual consent of the parties, this This
agreement shall remain in full force and effect as to the Oil and Gas Leases and/or Oil and Gas Interests subject hereto for the period of time selected below; provided, however, no party hereto shall ever be construed as having any right,
title or interest in or to any Lease or Oil and Gas Interest contributed by any other party beyond the term of this agreement. 
  

	 	☑☐	Option No. 1: So long as any of the Oil and Gas Leases subject to this agreement remain or are continued in force as to any part of the Contract Area, whether by production, extension, renewal or otherwise.

  

	 	☑Option No. 2: In the event the well described in Article VI.A., or any subsequent well drilled under any
provision of this agreement, results in the Completion of a well as a well capable of production of Oil and/or Gas in paying quantities, this agreement shall continue in force so long as any such well is capable of production, and for an additional
period of days thereafter; provided, however, if, prior to the expiration of such additional period, one or more of the parties hereto are engaged in drilling, Reworking, Deepening, Sidetracking, Plugging Back, testing or attempting to Complete or
Re-complete a well or wells hereunder, this agreement shall continue in force until such operations have been completed and if production results therefrom, this agreement shall continue in force as provided herein. In the event the well described
in Article VI.A., or any subsequent well drilled hereunder, results in a dry hole, and no other well is capable of producing Oil and/or Gas from the Contract Area, this agreement shall terminate unless drilling, Deepening, Sidetracking, Completing,
Re- completing, Plugging Back or Reworking operations are commenced within days from the date of abandonment of said well. “Abandonment”for such purposes shall mean either (i) a decision by all parties not to conduct any further
operations on the well or (ii) the elapse of 180 days from the conduct of any operations on the well, whichever first occurs. 

The termination of this agreement shall not relieve any party hereto from any expense, liability or other obligation or any remedy therefor
which has accrued or attached prior to the date of such termination. 
 Upon termination of this agreement and the satisfaction of all
obligations hereunder, in the event a memorandum of this Operating Agreement has been filed of record, Operator is authorized to file of record in all necessary recording offices a notice of termination, and each party hereto agrees to execute such
a notice of termination as to Operator’s interest, upon request of Operator, if Operator has satisfied all its financial obligations. 

ARTICLE XIV. 
 COMPLIANCE
WITH LAWS AND REGULATIONS 
 A. Laws, Regulations and Orders: 

This agreement shall be subject to the applicable laws of the state in which the Contract Area is located, to the valid rules, regulations, and
orders of any duly constituted regulatory body of said state; and to all other applicable federal, state, and local laws, ordinances, rules, regulations and orders. 

B. Governing Law: 
 This agreement and
all matters pertaining hereto, including but not limited to matters of performance, non- performance, breach, remedies, procedures, rights, duties, and interpretation or construction, shall be governed and determined by the law of the state in which
the Contract Area is located. If the Contract Area is in two or more states, the law of the state of Kansas shall govern. 

C. Regulatory Agencies: 
 Nothing herein
contained shall grant, or be construed to grant, Operator the right or authority to waive or release any rights, privileges, or obligations which Non-Operators may have under federal or state laws or under rules, regulations or orders promulgated
under such laws in reference to oil, gas and mineral operations, including the location, operation, or production of wells, on tracts offsetting or adjacent to the Contract Area. 

  
 - 18 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 With respect to the operations hereunder, Non-Operators agree to release Operator from any
and all losses, damages, injuries, claims and causes of action arising out of, incident to or resulting directly or indirectly from Operator’s interpretation or application of rules, rulings, regulations or orders
of any governmental authority having jurisdiction, including the Environmental Protection Agency, of the
Department of Energy or Federal Energy Regulatory Commission or predecessor or successor agencies to the extent such interpretation or application was made in good faith and does not constitute gross negligence. Each Non-Operator further agrees to
reimburse Operator for such Non-Operator’s share of production or any refund, fine, levy or other governmental sanction that Operator may be required to pay as a result of such an incorrect interpretation or application, together with interest
and penalties thereon owing by Operator as a result of such incorrect interpretation or application. 
 ARTICLE XV. 

MISCELLANEOUS 
 A. Execution: 

This agreement shall be binding upon each Non-Operator when this agreement or a counterpart thereof has been executed by such Non-Operator and
Operator notwithstanding that this agreement is not then or thereafter executed by all of the parties to which it is tendered or which are listed on Exhibit “A” as owning an interest in the Contract Area or which own, in fact, an interest
in the Contract Area. Operator may, however, by written notice to all Non-Operators who have become bound by this agreement as aforesaid, given at any time prior to the actual spud date of the Initial Well but in no event later than five
days prior to the date specified in Article VI.A. for commencement of the Initial Well, terminate this agreement if Operator in its sole discretion determines that there is insufficient participation to justify commencement of drilling operations.
In the event of such a termination by Operator, all further obligations of the parties hereunder shall cease as of such termination. In the event any Non-Operator has advanced or prepaid any share of drilling or other costs hereunder, all sums so
advanced shall be returned to such Non-Operator without interest. In the event Operator proceeds with drilling operations for the Initial Well without the execution hereof by all persons listed on Exhibit “A” as having a current working
interest in such well, Operator shall indemnify Non-Operators with respect to all costs incurred for the Initial Well which would have been charged to such person under this agreement if such person had executed the same and Operator shall receive
all revenues which would have been received by such person under this agreement if such person had executed the same. 
 B. Successors and
Assigns: 
 This agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs,
devisees, legal representatives, successors and assigns, and the terms hereof shall be deemed to run with the Leases or Interests included within the Contract Area. 

C. Counterparts: 
 This instrument may be
executed in any number of counterparts, each of which shall be considered an original for all purposes. 
 D. Severability: 

For the purposes of assuming or rejecting this agreement as an executory contract pursuant to federal bankruptcy laws, this agreement shall not
be severable, but rather must be assumed or rejected in its entirety, and the failure of any party to this agreement to comply with all of its financial obligations provided herein shall be a material default. 

  
 - 19 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 ARTICLE XVI. 

OTHER PROVISIONS 
  

	 	A.	Subsequently Created Interests: 

 If a Burdened Party elects to abandon any well under
the provisions of Article VI.E. or elects to surrender a Lease (or any portion thereof or undivided interest therein) under the provisions of Article VIII.A. and, as a result thereof, becomes obligated to assign all or a portion of such Lease, or
any undivided interest therein, to one or more of the other parties, then the interest assigned shall be free and clear of any such Subsequently Created Interest created by the Burdened Party and such Burdened Party shall indemnify, defend and hold
harmless the assignees and their respective successors in interest from any and all claims and demands for payment asserted by the owners of the Subsequently Created Interest created by the Burdened Party. 

 

	 	B.	Operator Liability: 

 Notwithstanding anything herein to the contrary and subject to
Operator being removed in accordance with Article V.B. and Article XVI.S, in no event shall Operator have any liability as operator for any claim, damage, loss or liability sustained or incurred in connection with any operation or any other
operation or activity prescribed or permitted hereunder or any breach of any provision regarding the standard of performance of an operator in performing operations under this agreement, EVEN IF SUCH CLAIM, DAMAGE, LOSS OR LIABILITY AROSE IN WHOLE
OR IN PART FROM THE ACTIVE, PASSIVE, SOLE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF OPERATOR OR ANY AFFILIATE OF OPERATOR OR ANY OFFICER, PARTNER, MEMBER, DIRECTOR, AGENT OR EMPLOYEE OF OPERATOR OR ANY AFFILIATE OF OPERATOR, OTHER
THAN IF SUCH CLAIM, DAMAGE, LOSS OR LIABILITY AROSE FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF OPERATOR OR ANY AFFILIATE OF OPERATOR; it being understood by each party that any such claim, damage, loss or liability (other than that caused by
the gross negligence or willful misconduct of Operator or any affiliate of Operator), shall be borne severally by the parties (including Operator) in proportion to their interests in the operations or activities giving rise to such claim, damage,
loss or liability. Operator shall bear sole responsibility on behalf of the other parties to this agreement for any claim, damage, loss or liability to the extent any such claim, damage, loss or liability is caused by or arises out of the gross
negligence or willful misconduct of Operator or any affiliate of Operator. 
  

	 	C.	Confidentiality: 

  

	 	1.	Except as otherwise specifically provided in this Article XVI.C., all information obtained pursuant to this agreement, including all geophysical, geological, and engineering data, well information, and all other records
and reports pertaining to the Contract Area or the operations thereon (collectively, the “Confidential Information”) shall be the sole and confidential property of the parties receiving it pursuant to this agreement, and the parties
agree, and do hereby bind themselves, their successors and assigns, to accept and keep the Confidential Information confidential and for the exclusive use of the parties concerned for the term of this agreement. If any portion of the Confidential
Information becomes generally available to the public while this agreement is still in force, and such availability is not a result of a breach of this agreement, then at that time the confidentiality provisions of this Article XVI.C. shall cease to
apply to that portion of the Confidential Information that has become generally available to the public. 

  

	 	2.	 Any party may disclose Confidential Information, without the consent of any other party, (a) to any
governmental authority when lawfully required by such governmental authority, (b) to potential and actual lenders, investors, co-investors and financial institutions, (c) to bona fide consultants and accredited engineering firms for the
purpose of evaluation on a confidential basis, (d) to third parties with whom a party is engaged in a bona fide effort to sell all or part of its interest in the Contract Area in accordance with this agreement, (e) to third parties with
whom a party is engaged in a bona fide effort to (i) effect a merger or consolidation, (ii) sell all or a controlling part of its stock or other equity capital, or (iii) sell all or substantially all of its assets or (f) to an
affiliate, director, owner, auditor, employee, member, partner or officer of a party; provided that any third 

  
 - 20 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

	 	
party who is permitted access to Confidential Information pursuant to provisions (b), (c), (d) or (e) of this paragraph (collectively, the “Permitted Third Parties”),
shall agree in writing prior to that access not to communicate such information to anyone and to make no use of such information adverse to the parties hereto during the period of time such information remains confidential hereunder.

  

	 	3.	Except as expressly provided hereunder, Operator makes no representations or warranties, express, statutory or implied, as to the accuracy, quality, or completeness of the Confidential Information. Operator shall not be
liable to any other party or to any Permitted Third Party in contract, tort, securities laws or otherwise as a result of such other party’s (or such Permitted Third Party’s) use or disclosure of the Confidential Information, or errors
therein or omissions therefrom. Each party accepts the Confidential Information “as is, where is, with all faults”, and agrees that neither it nor any of its affiliates, representatives, owners, successors, or assigns shall rely upon the
Confidential Information without first satisfying itself as to, and making independent verification of, the accuracy and completeness of such Confidential Information. 

 

	 	D.	Regulatory Filings: 

 Operator shall use its reasonable efforts to obtain any
governmental approvals or permits necessary to carry out operations under this agreement and shall prepare and file, in material compliance with law and other applicable requirements, the notices, reports and applications referred to in Article
V.D.6. However, in no event shall Operator have any liability to any Non-Operator in obtaining, making or prosecuting (or failing to obtain, make or prosecute) any such approval, permit, or filing or in rendering (or failing to render) any notice,
report or application, absent Operator’s gross negligence or willful misconduct. Any penalties incurred as a result of any incorrect filing, notice, report or application shall, in the absence of Operator’s gross negligence or willful
misconduct, be charged to the parties owning the production to which the penalty pertains in proportion to such ownership. 
  

	 	E.	Non-Operator Liability for Site Visits: 

 Each Non-Operator shall indemnify, defend and
hold harmless Operator from and against any and all liability in excess of insurance coverage carried for the joint account for injury to such Non-Operator’s officers, employees, invitees and/or agents, resulting from or relating to the
presence of any such officers, employees, invitees and/or agents at any well location or production facility on the Contract Area or from any such person’s traveling to or from such location or facility, other than any such injury and resulting
liability caused by the gross negligence or willful misconduct of Operator. 
  

	 	F.	Priority of Operations: 

 When a well has been authorized under the terms of this
agreement and there is more than one operation proposed in connection with said well and all the parties participating in the well cannot agree upon the sequence and timing of further operations regarding the well, the following elections shall
control in the order enumerated, as follows: 
  

	 	1.	Prior to reaching the objective depth: 

  

	 	a.	drilling a well to its objective depth shall have first priority over all other operations and proposals; and 

  

	 	b.	in the event that impenetrable or other conditions or mechanical difficulties prevent reaching the objective depth, a proposal to Sidetrack in an effort to reach the objective depth shall have priority over a proposal
to attempt a Completion in a Zone already reached. 

  

	 	2.	After the objective depth has been reached: 

  

	 	a.	an election to do additional logging, coring or testing; 

  

	 	b.	an election to attempt to Complete the well at either the objective depth or objective Zone; 

  

	 	c.	an election to Deepen said well, in ascending order; 

  

	 	d.	an election to Plug Back and attempt to Complete said well, in ascending order; 

  
 - 21 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

	 	e.	an election to Sidetrack the well; and 

  

	 	f.	an election to plug and abandon. 

  

	 	G.	Proposing and Participating in Operations: 

 No party may elect to participate in only
part of a proposed operation. When an operation is proposed pursuant to Article VI.B, each non-proposing party must elect either to participate in the entire proposed operation or to go non-consent with respect to the entire proposed operation. 

 

	 	H.	Controlling Language: 

 In the event of any conflict between any provision of this
Article XVI. and any other provision of this agreement, the provisions of this Article XVI. shall control and prevail. 
  

	 	I.	Preparation of Operating Agreement: 

 Each Party hereto and its respective counsel
participated in the preparation of this agreement. In the event of any ambiguity in this agreement, no presumption shall arise based on the identity of the draftsman of this agreement. 

 

	 	J.	Headings for Convenience Only: 

 The headings and titles in this agreement are for
guidance and convenience of reference only and do not limit or otherwise affect or interpret the provisions of this agreement. 
  

	 	K.	References: 

 Each reference made in this agreement to an Article refers to the
applicable Article in this agreement, unless the context clearly indicates otherwise. The words “this Article”, refers only to the Article hereof in which those words occur. Each reference made in this agreement to an Exhibit or Schedule
refers to the applicable Exhibit or Schedule attached hereto, unless the context clearly indicates otherwise. Each Exhibit and Schedule attached hereto is made a part hereof. 
  

	 	L.	Related Definitional Matters: 

 As used in this agreement, (a) any pronoun in
masculine, feminine or neuter gender shall be construed to include all other genders, (b) the term “including” shall be construed to be expansive rather than limiting in nature and to mean “including without limitation”,
except where the context expressly otherwise requires, (c) each term defined in this agreement in the singular shall include the plural of that term, and each term defined in this agreement in the plural shall include the singular of that term,
and (d) the words “this agreement”, “herein”, “hereby”, “hereunder”, and ‘“hereof”, and words of similar import refer to this agreement as a whole and not to any particular part of this
agreement unless the context clearly or expressly provides or indicates otherwise. 
  

	 	M.	Consequential Damages: 

 None of the parties shall be entitled to recover from any other
party, or such parties’ respective affiliates (as defined in Exhibit “C”), any indirect, consequential, punitive or exemplary damages arising under or in connection with this agreement or the transactions contemplated hereby, except
to the extent any such party suffers such damages (including costs of defense and reasonable attorneys’ fees incurred in connection with defending such damages) to a third party, which damages (including costs of defense and reasonable
attorneys’ fees incurred in connection with defending against such damages) shall not be excluded by this provision as to recovery hereunder. Subject to the preceding sentence, each party, on behalf of itself and each of its affiliates (as
defined in Exhibit “C”), waives any right to recover punitive, special, exemplary and consequential damages arising in connection with or with respect to this agreement or the transactions contemplated hereby. Notwithstanding anything
herein to the contrary, nothing in this agreement shall be construed to limit a party’s recovery of lost profits to the extent such lost profits constitute direct damages. Further, the parties each agree not to assert any claims against the
other party for any of the foregoing damages. 

  
 - 22 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

	 	N.	Severability: 

 If any term or other provision of this agreement is invalid, illegal or
incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any adverse manner to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this agreement so as to
effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 

 

	 	O.	Amendment: 

 This agreement may be amended only by an instrument in writing executed by
all of the parties hereto and expressly identified as an amendment or modification. Notwithstanding the foregoing, the Operator is hereby authorized to revise, modify or supplement Exhibit “A” to this Agreement to evidence any changes in
or additions to the Contract Area or the Oil and Gas Interests and/or Oil and Gas Leases forming a part of or covered by the Contract Area (to the extent Operator provides supporting documentation evidencing such changes) and to correct any
ministerial errors that the Operator may find from time to time in Exhibit “A”. The provisions of this agreement shall constitute a covenant running with the land and shall remain in full force and effect and be binding upon and inure to
the benefit of the parties and their respective permitted successors and assigns, in each case, until this agreement terminates. 
  

	 	P.	Memorandum of Operating Agreement: 

 The parties agree that upon execution of this
agreement, the parties will also execute the applicable Memorandum of Operating Agreement in the form set forth in Exhibit “H” hereto for recordation by either party in the ordinary course of business, in the county or counties and the
state in which the Contract Area is located. 
  

	 	Q.	Adjustments to Contract Area: 

 In the event any Interest or Lease is assigned pursuant
to this agreement, the interests of the parties reflected on Exhibit “A” shall be revised on an acreage basis, effective as of the date of such assignment, to reflect the assignment. 

 

	 	R.	Joint Use Agreement: 

 The parties acknowledge that the parties hereto are also parties
to that certain Joint Use Agreement by and among Linn, Berry Petroleum Company, LLC, XTO Energy, Inc., ExxonMobil Oil Corporation, Mobil E&P U.S. Development Corporation, and Exxon Mobil Corporation, effective August 15, 2014 (the
“JUA”). The JUA contains certain rights, remedies and obligations of the parties with respect to the Oil and Gas Leases and/or Interests comprising the Contract Area which supplement or modify its rights and obligations hereunder. The
parties’ rights and obligations hereunder shall be subject to the JUA, which shall control in the event of conflict between the provisions of the JUA and the provisions of this agreement. 

 

	 	S.	Transfer of Operatorship: 

  

	 	1.	 From and after March 31, 2018, Berry Petroleum Company, LLC (“Berry”) shall have the right to
request for itself, an affiliate of Berry or a third party to become Operator for all purposes of this agreement by delivering written notice of such request to Linn Operating, Inc. or Linn Energy Holdings, LLC (“Linn”), which notice
shall, (i) to the extent the proposed Operator is a third party, include a certification that such third party is reasonably qualified to operate and develop the Contract Area, and (ii) be delivered not less than 90 days prior to the date
on which Berry is proposing the change of Operator to occur. If Berry proposes that it or its affiliate shall become Operator, Linn will be deemed to have approved such request and the relevant entity shall become Operator on the date specified in
the written notice. Should Berry propose to appoint a third party as Operator, Linn shall have a period of 15 days to review and approve such request. If Linn approves such request within such 15 day period, or fails to deliver a written notice of
disapproval of such request within such 15 day period (in which case Linn shall be deemed to approve such request), then, on the date that is specified in the notice, such third party shall become Operator for all purposes of this agreement without
the need for any vote. 

  
 - 23 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

	 	
During such 90 day period, Linn shall use commercially reasonable efforts to assist in the transition of Berry, its affiliate or the relevant third party to the role of Operator. Linn shall not
unreasonably withhold its approval of any request made by Berry for a change of Operator pursuant to this Article XVI.S.1. 

  

	 	2.	Notwithstanding any other provision of this agreement to the contrary, if Linn Operating, Inc. or Linn Energy Holdings, LLC sells or transfers (including as part of a Change of Control with respect to Linn) all of its
interests under this agreement and/or all of its rights and interests in and to the Contract Area to a third party (any such sale or transfer, a “Linn Exit Event”), then, contemporaneously with such Linn Exit Event, Berry (or its
affiliate) shall automatically become Operator hereunder and shall succeed Linn Operating, Inc. (or its assignee or successor, if applicable) as Operator for all purposes of this agreement, without requirement of any vote or further action by the
parties. Linn shall deliver written notice to Berry promptly after the execution of any definitive documentation pursuant to which a Linn Exit Event may occur, and the closing of such Linn Exit Event shall not occur less than 30 days after the date
that such notice is delivered. 

  

	 	3.	Notwithstanding any other provision of this agreement to the contrary, if Berry sells or transfers (including as part of a Change of Control with respect to Berry) all of its interests under this agreement and/or all of
its rights and interests in and to the Contract Area to a third party (any such sale or transfer, a “Berry Exit Event”), then, contemporaneously with such Berry Exit Event, Berry’s transferee (or such transferee’s affiliate)
shall automatically become Operator hereunder and shall succeed Linn Operating, Inc. (or its assignee or successor, if applicable) as Operator for all purposes of this agreement, without requirement of any vote or further action by the parties.
Berry shall deliver written notice to Linn promptly after the execution of any definitive documentation pursuant to which a Berry Exit Event may occur, and the closing of such Berry Exit Event shall not occur less than 30 days after the date that
such notice is delivered. 

  

	 	T.	Metering of Production 

 If a diversity of the working interest ownership in production
from the Contract Area occurs as a result of operations by less than all parties pursuant to any provision of this agreement, it is agreed that the oil and other hydrocarbons produced from the well or wells completed by the Consenting Party or
Parties shall be separately measured by standard metering equipment to be properly tested periodically for accuracy, and the setting of a separate battery tank will not be required. 

 

	 	U.	Additional Definitions: 

 The term “affiliate” shall mean, with respect to any party, any other
person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such person. As used in this definition, the term “Control” (including the terms “Controlling,”
“Controlled by,” and “under common Control with”) with respect to any person or entity means the possession, directly or indirectly, of the power to exercise or determine the voting of more than 50% of the voting rights in a
corporation, and, in the case of any other type of entity, the right to exercise or determine the voting of more than 50% of the equity interests having voting rights, or otherwise to direct or cause the direction of the management and policies of
such person, whether by contract or otherwise. 
 The term “Change of Control” shall mean, with respect to any party, the occurrence of any of the
following: (a) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that one or more third parties becomes the beneficial owner, directly or indirectly, of more than 50% of the
voting equity interests of such party; (b) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of such
party’s assets and the assets of its subsidiaries, taken as a whole, to one or more third parties; provided, however, that none of the circumstances in this clause (b) shall be a Change of Control if the persons that beneficially own such
equity interests immediately prior to the transaction own, directly or indirectly, equity interests with a majority of the total voting power of all of the 

  
 - 24 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 
outstanding equity interests of the transferee immediately after the transaction; or (c) such party consolidates with, or merges with or into, any third party or any third party consolidates
with, or merges with or into, such party, in either case, pursuant to a transaction in which any of such party’s outstanding equity interests or the equity interests of such third party is converted into or exchanged for cash, securities or
other property (other than pursuant to a transaction in which a party’s equity interests outstanding immediately prior to the transaction constitute, or are converted into or exchanged for, a majority of the equity securities of the surviving
person immediately after giving effect to such transaction); provided, that for the avoidance of doubt, neither an IPO nor reorganization of a party or any of such party’s subsidiaries shall constitute a Change of Control. 

 

	 	V.	Operator: 

 Linn Operating, Inc. (“Operator”) is an affiliate of Linn
Energy Holdings, LLC, which owns an interest in the Contract Area. Operator shall carry out all duties and responsibilities under the terms and provisions of this agreement. Each Non-Operator hereby authorizes Operator to carry on its duties as
Operator under the terms and provisions of this agreement. Operator owns no leasehold interest in the Contract Area, but accepts the designation of Operator and agrees to perform all actions as Operator as set forth in this agreement.
Notwithstanding anything herein to the contrary, so long as Linn Energy Holdings, LLC or any of its affiliates owns an interest in the Contract Area, Operator shall be deemed to own an interest in the Contract Area for all purposes under this
agreement. 
  

	 	W.	Successors and Assigns: 

 Each party hereto covenants and agrees for itself, its
successors and assigns, that any sale, assignment, sublease, mortgage, pledge or other instrument affecting the leases and lands subject to this instrument (whether of an operating or non-operating interest or a mortgage, pledge or other security
interest) will be made and accepted subject to this instrument. Should a party assign all or part of its interest in the Contract Area subject to this agreement, at such time as the selling party has paid all of its share of joint interest billing
costs in accordance with Exhibit “C” current to the effective date of such sale, it shall be deemed that the selling party shall be released from any responsibility for costs thereafter incurred relative to the undivided interest sold;
provided, however, to the extent a party retains an undivided interest such party shall continue to be bound by all of the terms and conditions of this agreement applicable to the retained undivided interest. The party acquiring the interest shall
be furnished a copy of this agreement and any amendments thereto, and shall expressly agree in writing to be bound by all of its terms and provisions. Any mortgagee, pledgee or person holding only a security interest shall not incur any obligations
under this agreement although its rights may be affected or limited hereby, unless and until such mortgagee, pledgee or person holding a security interest acquires legal title to any interests subject to this agreement. In the event of the
foreclosure of the mortgage or security interest, any sale will be expressly made and accepted subject to all of the terms and provisions of this agreement. 
  

	 	X.	Bankruptcy: 

 If, following the granting of relief under the Bankruptcy Code to any party
hereto as debtor thereunder, this agreement should be held to be an executory contract under the Bankruptcy Code, then any remaining party shall be entitled to a determination by debtor or any trustee for debtor within thirty (30) days from the
date an order for relief is entered under the Bankruptcy Code as to the rejection or assumption of this agreement. If the debtor or trustee determines to assume this agreement, the party seeking determination shall be entitled to adequate assurances
as to the future performance of debtor’s obligations hereunder and the protection of the interests of all parties. The debtor shall satisfy its obligation to provide adequate assurances by either advancing payments or depositing the
debtor’s proportionate share of expenses in escrow. 
  

	 	Y.	Covenant Running with the Land: 

 Should any party hereto sell or transfer any or all of
its leasehold estate committed to this agreement, the obligations, terms and covenants hereof shall be considered covenants running with the land and shall inure to and be binding upon the parties hereto, their respective heirs, devisees, legal
representatives, successors and assigns. 

  
 - 25 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

	 	Z.	Audit Rights: 

 Notwithstanding the termination of this agreement, with respect to any
operation undertaken in the Contract Area hereunder, the access rights set forth in Article V.D.5. shall survive for a period of three years after the completion of such operation. 

  
 - 26 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 IN WITNESS WHEREOF, this agreement shall be effective as of the      day
of                     ,                 . 

, who has prepared and circulated this form for execution, represents and warrants that the form was printed from and, with the
exception(s) listed below, is identical to the AAPL Form 610-1989 Model Form Operating Agreement, as published in computerized form by Forms On-A-Disk, Inc. No changes, alterations, or modifications, other than
those made by strikethrough and/or insertion and that are clearly recognizable as changes in Articles , have been made to the form. 
  

							
	ATTEST OR WITNESS:	  		  	OPERATOR
		  		  	 Linn Operating, Inc.,

as agent for Linn Energy Holdings, LLC

				
	  
	  		  	By	 	 /s/ Arden L. Walker, Jr.

				
	  
	  		  		 	 /s/ Arden L. Walker, Jr.

		  		  		 	Type or print name
				
		  		  	Title	 	 Executive Vice President and Chief Operating Officer

				
		  		  	Date	 	 February 28, 2017

			
		  		  	Tax ID or S.S. No.                          
                                         
                

 NON-OPERATORS 
  

							
		  		  	 Berry Petroleum Company,
LLC

				
	  
	  		  	By	 	 /s/ Arthur T. Smith

				
	  
	  		  		 	 Arthur T. Smith

		  		  		 	Type or print name
				
		  		  	Title	 	 CEO

				
		  		  	Date	 	 February 28, 2017

			
		  		  	Tax ID or S.S. No.                          
                                         
                

  

							
		  		  	  

				
	  
	  		  	By	 	  

				
	  
	  		  		 	  

		  		  		 	Type or print name
				
		  		  	Title	 	  

				
		  		  	Date	 	  

			
		  		  	Tax ID or S.S. No.                          
                                         
                

  

							
		  		  	  

				
	  
	  		  	By	 	  

				
	  
	  		  		 	  

		  		  		 	Type or print name
				
		  		  	Title	 	  

				
		  		  	Date	 	  

			
		  		  	Tax ID or S.S. No.                          
                                         
                

  
 - 27 - 

 A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 

 

 ACKNOWLEDGMENTS 

Note: The following forms of acknowledgment are the short forms approved by the Uniform Law on Notarial Acts.  

The validity and effect of these forms in any state will depend upon the statutes of that state. 

Individual acknowledgment: 

State of
                                         
               ) 

                      
                                         
     ) ss. 
 County
of                                         
                ) 

            This instrument was acknowledged before me on 

                      
                                         
             by
                                         
                                

(Seal, if
any                                         
           ) 

                      
                  Title (and Rank        )  

                      
              My commission expires:              

Acknowledgment in representative capacity: 

State
of                                         
                        ) 

                      
                                         
                 ) ss. 
 County
of                                         
                        ) 

                This instrument was acknowledged before
me on 

                      
                      by
                                         
       as 

                      
                      of                   
  . 
 (Seal, if
any)                                         
                        

                      
                  Title (and
Rank)                          

                      
              My commission expires                :  

  
 - 28 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00284-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00284-of-00352.parquet"}]]