Document:

Exhibit
10.13

 

EXECUTION
COPY

 

EMPLOYMENT
AGREEMENT

 

February 7,
2007

 

The parties to this Employment Agreement (this “Agreement”) are LINN OPERATING, INC.,
a Delaware corporation (the “Company’’)
and Arden L Walker, Jr. (the “Employee”).  The
parties desire to provide for the employment of the Employee as Senior Vice
President Operations - Chief Engineer of the Company and of Linn Energy (as
defined) commencing on Employee’s first date of employment, such date to be
mutually agreed by the parties (the “Effective Date”) on the terms set forth
herein. LINN ENERGY, LLC, a
Delaware limited liability company and the 100% parent of the Company (“Linn Energy”), is joining in this
agreement for the limited purposes of reflecting its agreement to the matters
set forth herein as to it, but such joinder is not Intended to make Linn Energy
the employer of the Employee for any purpose.

 

Accordingly, the parties, intending to be legally bound, agree as
follows:

 

1.             Position and Duties

 

1.1           Employment; Titles; Reporting.  The
Company agrees to employ the Employee and the Employee agrees to enter
employment with the Company, upon the terms and subject to the conditions
provided under this Agreement. During the Employment Term (as defined in Section 2),
the Employee will serve each of the Company and Linn Energy as the Senior Vice
President Operations – Chief Engineer. In such capacity, the Employee will
report to Linn Energy’s and the Company’s Executive Vice President and Chief
Operating Officer and otherwise will be subject to the direction and control of
the Board of Directors of Linn Energy (including any committee thereof, the “Board”), and, the Employee will
have such duties, responsibilities and authorities as may be assigned to him by
the Company’s Executive Vice President and Chief Operating Officer or the Board
from time to time and otherwise consistent with such position in a public
company comparable to Linn Energy which is engaged in natural gas and oil
acquisition, development and production (including, but not limited to,
maintaining, to the extent applicable, compliance with the Sarbanes-Oxley Act
of 2002 and related regulations and all other federal, state and local laws and
regulations, as well as all regulations and rules of any exchange or
electronic trading system on which Linn Energy’s securities are traded).

 

1.2           Duties.  During the Employment Term,
the Employee will devote substantially all of his full working time to the
business and affairs of the Company, will use his best efforts to promote the
Company’s interests and will perform his duties and responsibilities
faithfully, diligently and to the best of his ability, consistent with sound
business practices. The Employee may be required by the Board to provide
services to, or otherwise serve as an officer or director of, any direct or
indirect subsidiary of the Company or to Linn Energy, as applicable. The
Employee will comply with the Company’s and Linn Energy’s policies, codes and
procedures, as they may be in effect from time to time, applicable to executive
officers of the Company and Linn Energy. Nevertheless, the Employee may, with
the prior approval of the Board in each instance, engage in such other business
and charitable activities that do not violate Section 7, create a
conflict of interest or the appearance of a conflict of interest with the
Company or Linn

 

 

Energy
or materially Interfere with the performance of his obligations to the Company
or Linn Energy under this Agreement.

 

1.3           Place of Employment.  The
Employee will perform his duties under this Agreement at the Company’s offices
in Houston, Texas, with the likelihood of substantial business travel.

 

2.             Term of Employment.  The term of the Employee’s employment by the Company under this
Agreement (the “Employment Term”) will
commence on the Effective Date and will continue until employment is terminated
by either party under Section 5. The date on which the Employee’s
employment ends is referred to In this Agreement as the “Termination Date.”

 

3.             Compensation.

 

3.1           Base Salary.  During the Employment Term,
the Employee will be entitled to receive a base salary (“Base Salary”) at an annual rate
of not less than $175,000 for services rendered to the Company and any of its
direct or indirect subsidiaries, payable in accordance with the Company’s
regular payroll practices. The Employee’s Base Salary will be reviewed annually
by the Board and may be adjusted upward in the Board’s sole discretion.

 

3.2           Bonus Compensation.  (a) 
The Employee will be entitled to a one-time bonus (the “One-Time Bonus”) in the
amount of $175,000 payable within thirty (30) days after the Effective Date. (b) The
Employee will also be entitled to receive a guaranteed bonus (“Guaranteed Bonus”)
payment of not less than $125,000 with respect to the Company’s fiscal year ending
December 31, 2007. Thereafter, during the Employment Term, the Employee
will be entitled to receive incentive compensation in such amounts and at such
times as the Board may determine in its sole discretion to award to him under
any incentive compensation or other bonus plan or arrangement as may be
established by the Board from time to time (collectively, the “Employee Bonus Plan”). Any
additional incentive compensation payable under any Employee Bonus Plan will be
referred to in the aggregate in this Agreement as the Employee’s “Bonus.”

 

3.3           Long-Term Incentive Compensation.

 

(a)           Unit Options.  As
of the Effective Date, the Employee will receive an award of non-qualified
options to purchase up to 50,000 Units of Linn Energy at a per share exercise
price equal to the fair market value of a Unit as of the date of grant, which
shall be awarded under the terms of the Linn Energy, LLC Long Term Incentive
Plan or any successor plan, as it may be in effect from time to time (the “Incentive
Plan”), and subject to a service-based vesting schedule and such other terms
and conditions set forth in the applicable option agreement.

 

(b)           Restricted Units.  As
of the Effective Date, the Employee will receive a restricted Unit award in the
amount of 50,000 Units of Linn Energy, which shall be awarded under the terms
of the Incentive Plan, and subject to a service-based vesting schedule and such
other terms and conditions set forth in the applicable restricted unit
agreement.

 

(c)           Future Awards.  In
addition to the above long-term incentive compensation awards, awards of Unit
options. Unit grants, restricted Units and/or other forms of equity-based
compensation to the Employee on or after the Effective Date may be made from
time to time during the Employment Term by the Board in its sole discretion,
whose decision will

 

2

 

be
based upon performance and award guidelines for executive officers of the
Company and Linn Energy established periodically by the Board in its sole
discretion.

 

4.             Expenses and Other Benefits.

 

4.1           Reimbursement of Expenses.  The
Employee will be entitled to receive prompt reimbursement for all reasonable
expenses incurred by him during the Employment Term (in accordance with the
policies and practices presently followed by the Company or as may be established
by the Board from time to time for the Company’s and Linn Energy’s senior
executive officers) in performing services under this Agreement, provided that
the Employee properly accounts for such expenses in accordance with the Company’s
and Linn Energy’s policies as in effect from time to time.

 

4.2           Vacation.  Employee will be entitled to
paid vacation time each year during the Employment Term that will accrue in
accordance with the Company’s policies and procedures now in force or as such
policies and procedures may be modified with respect to all senior executive
officers of the Company.

 

4.3           Other Employee Benefits.  In
addition to the foregoing, during the Employment Term, the Employee will be
entitled to participate in and to receive benefits as a senior executive under
all of the Company’s employee benefit plans, programs and arrangements
available to senior executives, subject to the eligibility criteria and other
terms and conditions thereof, as such plans, programs and arrangements may be
duly amended, terminated, approved or adopted by the Board from time to time.

 

5.             Termination of Employment.

 

5.1           Death.    The Employee’s employment
under this Agreement will terminate upon his death.

 

5.2           Termination by the Company.

 

(a) Terminable at Will.  The Company may terminate the Employee’s employment under this
Agreement at any time with or without Cause (as defined below).

 

(b) Definition
of Cause.  For purposes of
this Agreement, the Company will have “Cause”
to terminate the Employee’s employment under this Agreement by
reason of any of the following: (i) the Employee’s conviction of, or plea
of nolo contendere to, any felony or to any crime or offense causing
substantial harm to any of Linn Energy or its direct or indirect subsidiaries
(whether or not for personal gain) or involving acts of theft, fraud, embezzlement, moral turpitude
or similar conduct; (ii) the Employee’s repeated intoxication by alcohol
or drugs during the performance of his duties; (iii) malfeasance in the
conduct of Employee’s duties, including, but not limited to, (A) willful
and Intentional misuse or diversion of any of the funds of Linn Energy or its
direct or indirect subsidiaries, (B) embezzlement or (C) fraudulent
or willful and material misrepresentations or concealments on any written
reports submitted to any of Linn Energy or its direct or indirect subsidiaries;
(iv) the Employee’s material failure to perform the duties of the Employee’s
employment consistent with Employee’s position, expressly including the
provisions of this Agreement, or material failure to follow or comply with the
reasonable and lawful written directives of the Board; (v) a material

 

3

 

breach of this Agreement; or (vi) a material breach by the Employee
of written policies of the Company concerning employee discrimination or
harassment.

 

(c) Notice and Cure Opportunity
in Certain Circumstances.  The Employee may be afforded a reasonable
opportunity to cure any act or omission that would otherwise constitute “Cause”
hereunder according to the following terms: The Board will give the Employee
written notice stating with reasonable specificity the nature of the
circumstances determined by the Board in good faith to constitute “Cause.” If,
in the good faith judgment of the Board, the alleged breach is reasonably
susceptible to cure, the Employee will have fifteen (15) days from his receipt
of such notice to effect the cure of such circumstances or such breach to the
good faith satisfaction of the Board. The Board will state whether the Employee
will have such an opportunity to cure in the initial notice of “Cause” referred
to above. If, In the good faith judgment of the Board the alleged breach is not
reasonably susceptible to cure, or such circumstances or breach have not been
satisfactorily cured within such fifteen (15) day cure period, such breach will
thereupon constitute “Cause” hereunder.

 

5.3           Termination by the Employee.

 

(a)  Terminable at Will.  The
Employee may terminate his employment under this Agreement at any time with or
without Good Reason (as defined below).

 

(b)  Notice and Cure Opportunity.  If
such termination is with Good Reason, the Employee will give the Company
written notice, which will identify with reasonable specificity the grounds for
the Employee’s resignation and provide the Company with fifteen (15) days from
the day such notice is given to cure the alleged grounds for resignation
contained in the notice. A termination will not be for Good Reason if such
notice is given by the Employee to the Company more than thirty (30) days after
the occurrence of the event that the Employee alleges is Good Reason for his
termination hereunder.

 

(c)  Definition of Good Reason.  For
purposes of this Agreement, “Good Reason”
will mean any of the following to which the Employee will not
consent in writing: (a) a reduction in the Employee’s Base Salary, or (b) a
relocation within two (2) years from the Effective Date of this Agreement
of the Employee’s primary place of employment to a location more than 50 miles
from Houston, Texas.

 

5.4           Notice of Termination.  Any
termination of the Employee’s employment by the Company or by the Employee
during the Employment Term (other than termination pursuant to Section 5.1)
will be communicated by written Notice of Termination to the other party hereto
in accordance with Section 8.7. For purposes of this Agreement, a “Notice of Termination” means a written
notice that (a) indicates the specific termination provision in this
Agreement relied upon, (b) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Employee’s employment under the provision so indicated, and (c) if
the Termination Date (as defined herein) is other than the date of receipt of
such notice, specifies the Termination Date (which Termination Date will be not
more than thirty (30) days after the giving of such notice).

 

5.5           Disability.  If the Company determines in
good faith that the Disability (as defined herein) of the Employee has occurred
during the Employment Term, it may, without breaching this Agreement, give to
the Employee written notice in accordance with Section 5.4 of its

 

4

 

intention
to terminate the Employee’s employment. In such event, the Employee’s
employment with the Company will terminate effective on the fifteenth (15th) day after receipt of such notice by the Employee (the “Disability Effective Date”), provided
that, within the fifteen (15) days after such receipt, the Employee will not
have returned to full-time performance of the Employee’s duties, “Disability’’ means the
determination by a physician selected by the Company that the Employee has been
unable to perform substantially the Employee’s usual and customary duties under
this Agreement for a period of at least one hundred twenty (120) consecutive
days or a non-consecutive period of one hundred eighty (180) days during any
twelve-month period as a result of incapacity due to mental or physical illness
or disease. At any time and from time to time, upon reasonable request
therefore by the Company, the Employee will submit to reasonable medical
examination for the purpose of determining the existence, nature and extent of
any such disability.

 

6.             Compensation of the Employee upon Termination.

 

6.1           Death.  If the Employee’s employment
under this Agreement is terminated by reason of his death, the Company will pay
to the person or persons designated by the Employee for that purpose in a
notice filed with the Company, or, if no such person will have been so
designated, to his estate, the amount of (a) the Employee’s accrued but
unpaid Base Salary through the Termination Date paid in a lump sum within
thirty (30) days following the Termination Date, (b) with respect to any
Termination Date on or after January 1, 2008 by reason of Employee’s
death, any accrued but unpaid Bonus, which Bonus will be payable at such time
as the bonuses of other executive officers of the Company are payable, (c) with
respect to any Termination Date on or before December 31, 2007 by reason
of Employee’s death, a cash amount equal to (i) any unpaid One-Time Bonus
amounts, if any, and (ii) the Employee’s pro-rata Guaranteed Bonus amount
set forth in Section 3.2 of this Agreement, payable at such time as
bonuses for such annual period are paid to other executive officers of the
Company, and (d) any other amounts that may be reimbursable by the Company
to the Employee as expressly provided under this Agreement paid in a lump sum
within thirty (30) days following the Termination Date, and the Company
thereafter will have no further obligation to the Employee under this
Agreement, other than for payment of any amounts accrued and vested under any
employee benefit plans or programs of the Company and any payments or benefits
required to be made or provided under applicable law. Without limiting the
generality of the foregoing, any rights the Employee’s beneficiary may have to
the proceeds of any life insurance arrangement set forth in Section 4.3
will be in lieu of any special entitlement to severance pay or benefits upon
the Employee’s death.

 

6.2           Disability.  In the event of the Employee’s
termination by reason of Disability pursuant to Section 5.5, the
Employee will continue to receive his Base Salary and participate in applicable
employee benefit plans or programs of the Company (on an equivalent basis to Section 6.4(a)(iv) below)
through the Termination Date, subject to offset dollar-for-dollar by the amount
of any disability Income payments provided to the Employee under any Company
disability policy or program funded by the Company, and will receive (a) the
Employee’s accrued but unpaid Base Salary through the Termination Date paid in
a lump sum within thirty (30) days following the Termination Date, (b) with
respect to any Termination Date on or after January 1, 2008 by reason of
Employee’s Disability, any accrued but unpaid Bonus, which Bonus will be
payable at such time as the bonuses of other executive officers of the Company
are payable, (c) with respect to any Termination Date on or before December 31,
2007 by reason of Employee’s Disability, a cash amount equal to (i) any
unpaid One-Time Bonus amounts, if any, and (ii) the Employee’s pro-rata
Guaranteed Bonus amount set forth in Section 3.2 of this Agreement,
payable at such time as bonuses for such annual period are paid to other

 

5

 

executive
officers of the Company, and (d) any other amounts that may be
reimbursable by the Company to the Employee as expressly provided under this
Agreement paid in a lump sum within thirty (30) days following the Termination
Date, and the Company thereafter will have no further obligation to the
Employee under this Agreement, other than for payment of any amounts accrued
and vested under any employee benefit plans or programs of the Company and any
payments or benefits required to be made or provided under applicable law.

 

6.3           By the Company for Cause or the Employee
Without Good Reason.  If the Employee’s employment is terminated by
the Company for Cause, or if the Employee terminates his employment other than
for Good Reason, the Employee will receive (a) the Employee’s accrued but
unpaid Base Salary through the Termination Date paid in a lump sum within
thirty (30) days following the Termination Date, (b) any accrued but
unpaid Bonus, which Bonus will be payable at such time as the bonuses of other
executive officers of the Company are payable, and (c) any other amounts
that may be reimbursable by the Company to the Employee as expressly provided
under this Agreement paid in a lump sum within thirty (30) days following the
Termination Date, and the Company thereafter will have no further obligation to
the Employee under this Agreement, other than for payment of any amounts
accrued and vested under any employee benefit plans or programs of the Company
and any payments or benefits required to be made or provided under applicable
law.

 

6.4           By the Employee for Good Reason or the
Company other than for Cause.

 

(a)           Severance Benefits on Non-Change of Control Termination.  Subject to the provisions of Section 6.4(b) and Section 6.4(d),
if prior to or more than one (1) year after the occurrence of a Change of
Control (as defined below) the Company terminates the Employee’s employment
without Cause, or the Employee terminates his employment for Good Reason, then
the Employee will be entitled to the following benefits (the “Severance Benefits”):

 

(i)            an amount equal to (a) the Employee’s
accrued but unpaid Base Salary through the Termination Date paid in a lump sum
within thirty (30) days following the Termination Date, (b) with respect
to any Termination Date on or after January 1, 2008 by the Employee for
Good Reason or by the Company without Cause, any accrued but unpaid Bonus,
which Bonus will be payable at such time as the bonuses of other executive
officers of the Company are payable, (c) any other amounts that may be
reimbursable by the Company to the Employee as expressly provided under this
Agreement paid in a lump sum within thirty (30) days following the Termination
Date;

 

(ii)           with respect to any termination event described in this paragraph (a) of
Section 6.4: (A) occurring after the Effective Date and prior to the
first anniversary date thereof, twelve (12) monthly payments, and (B) occurring
on or after the first anniversary of the Effective Date, twenty-four (24)
monthly payments, in either case in an amount equal to one-twelfth (1/12) of
the Employee’s annual Base Salary at the highest rate in effect at any time
during the thirty-six (36)-month period prior to the Termination Date,
commencing with the calendar month immediately following the calendar month in
which the Termination Date occurs;

 

(iii)          With respect to any Termination Date on or before December 31,
2007 by the Employee for Good Reason or by the Company without Cause, a

 

6

 

cash amount equal to the Employee’s pro-rata Guaranteed Bonus amount
set forth in Section 3.2 of this Agreement, payable at such time as
bonuses for such annual period are paid to other executive officers of the
Company; and

 

(iv)          the Company will pay the full cost of the Employee’s COBRA continuation
coverage for such period, as such coverage is required to be continued under
applicable law; provided, however, that, notwithstanding the foregoing, the
benefits described in this Section 6.4(a)(iv) may be
discontinued prior to the end of the period provided in this subsection (iv) to
the extent, but only to the extent, that the Employee receives substantially
similar benefits from a subsequent employer (“COBRA
Benefit”).

 

(b)  Change of Control Benefits.  Subject
to the provisions of Section 6.4(d), if within the one
(1)-year period following the occurrence of a
Change of Control, the Company terminates the Employee’s employment
without Cause, or the Employee terminates his employment for Good Reason (an “Eligible
Termination”), then, in lieu of the Severance Benefits under Section 6.4(a),
the Employee will be entitled to benefits (the “Change
of Control Benefits”) identical to those set forth in Section 6.4(a) except
that the amount described in clause (ii) will be paid in a lump sum within
thirty (30) days following the Termination Date and will be equal to: (A) twelve
(12) monthly payments with respect to any Eligible Termination occurring after
the Effective Date and prior to the first anniversary date thereof, and (B) with
respect to any Eligible Termination occurring on or after the first anniversary
date of the Effective Date an additional twelve (12) monthly payments.

 

(c)  Definition of Change of Control.  For purposes of this Agreement, a “Change of Control  will mean the
first to occur of:

 

(i)            The acquisition by any individual, entity or
group (within the meaning of Section 13(d) (3) or 14(d) (2) of
the Exchange Act) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of 35% or more of either (A) the then-outstanding equity
interests of Linn Energy (the “Outstanding
Linn Energy Equity”) or (B) the combined voting power of
the then-outstanding voting securities of Linn Energy entitled to vote
generally in the election of directors (the “Outstanding
Linn Energy Voting Securities”);  provided,
however, that, for purposes of this Section 6.4(c)(i), the
following acquisitions will not constitute a Change of Control: (A) any
acquisition directly from Linn Energy, (B) any acquisition by Linn Energy,
(C) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by Linn Energy or any affiliated company, or (D) any
acquisition by any corporation or other entity pursuant to a transaction that
complies with Section 6.4(c)(iii)(A), Section 6.4(c)(iii)(B) or
Section 6.4(c)(iii)(C):

 

(ii)           Any time at which individuals who, as of the date hereof, constitute
the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by Linn Energy’s Unit holders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board will be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as

 

7

 

a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board;

 

(iii)          Consummation of a reorganization, merger, statutory share exchange or
consolidation or similar corporate transaction involving Linn Energy or any of
its subsidiaries, a sale or other disposition of all or substantially all of
the assets of Linn Energy, or the acquisition of assets or equity interests of
another entity by Linn Energy or any of its subsidiaries (each, a “Business Combination”), in each
case unless, following such Business Combination, (A) all or substantially
all of the individuals and entities that were the beneficial owners of the
Outstanding Linn Energy Equity and the Outstanding Linn Energy Voting
Securities Immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the then-outstanding equity interests
and the combined voting power of the then-outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such Business Combination (including, without
limitation, a corporation or other entity that, as a result of such
transaction, owns Linn Energy or all or substantially all of Linn Energy’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership immediately prior to such Business
Combination of the Outstanding Linn Energy Equity and the Outstanding Linn
Energy Voting Securities, as the case may be, (B) no Person (excluding any
corporation resulting from such Business Combination or any employee benefit
plan (or related trust) of Linn Energy or such corporation or other entity
resulting from such Business Combination) beneficially owns, directly or indirectly,
35% or more of, respectively, the then-outstanding equity interests of the
corporation or other entity resulting from such Business Combination or the
combined voting power of the then-outstanding voting securities of such
corporation or other entity, except to the extent that such ownership existed
prior to the Business Combination, and (C) at least a majority of the
members of the board of directors of the corporation or equivalent body of any
other entity resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement or of the
action of the Board providing for such Business Combination; or

 

(iv)          Consummation of a complete liquidation or dissolution of Linn Energy.

 

(d)  Conditions to Receipt of Severance Benefits.

 

(i)            Release.  As a condition to receiving any Severance Benefits or Change of Control
Benefits to which the Employee may otherwise be entitled under Section 6.4(a) or
Section 6.4(b), the Employee will execute a release (the “Release”), which will include an
affirmation of the restrictive covenants set forth in Section 7 and
a non-disparagement provision, in a form and substance satisfactory to the
Company, of any claims, whether arising under federal, state or local statute,
common law or otherwise, against the Company and its direct or indirect
subsidiaries which arise or may have arisen on or before the date of the
Release, other than any claims under this Agreement or any rights to
indemnification from the Company and its direct or indirect subsidiaries
pursuant to any provisions of the Company’s (or any of its subsidiaries’)
organizational

 

8

 

documents or any directors and officers liability insurance policies
maintained by the Company. If the Employee fails or otherwise refuses to
execute a Release within a reasonable time after the Company’s request to do
so, and in all events prior to the date on which such benefits are to be first
paid to him, the Employee will not be entitled to any Severance Benefits or
Change of Control Benefits, as the case may be, or any other benefits provided
under this Agreement and the Company will have no further obligations with
respect to the provision of those benefits except as may be required by law.

 

(ii)           Limitation on Benefits.  If, following a termination of employment that gives the Employee a
right to the payment of Severance Benefits under Section 6.4(a) or
Section 6.4(b), the Employee violates in any material respect any
of the covenants in Section 7 or as otherwise set forth in the
Release, the Employee will have no further right or claim to any payments or
other benefits to which the Employee may otherwise be entitled under Section 6.4(a) or
Section 6.4(b) from and after the date on which the Employee
engages in such activities and the Company will have no further obligations
with respect to such payments or benefits, and the covenants in Section 7
will nevertheless continue in full force and effect.

 

6.5           Severance Benefits Not Includable for
Employee Benefits Purposes.  Except to the extent the terms of any
applicable benefit plan, policy or program provide otherwise, any benefit
programs of the Company that takes into account the Employee’s income will
exclude any and all Severance Benefits and Change of Control Benefits provided
under this Agreement.

 

6.6           Exclusive Severance Benefits.  The
Severance Benefits payable under Section 6.4(a) or the Change
of Control Benefits payable under Section 6.4(b), if they become
applicable under the terms of this Agreement, will be in lieu of any other
severance or similar benefits that would otherwise be payable under any other
agreement, plan, program or policy of the Company.

 

6.7           Additional Provisions Regarding Payments
Under This Agreement.  Notwithstanding anything in this Agreement to
the contrary, in the event that any benefits payable or otherwise provided
under this Agreement would be

 

(a)  subject to the excise tax
imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”). (such excise tax referred to
in this Agreement as the “Excise Tax”), then
the Board may, in its sole discretion, provide for the payment of, or otherwise
reimburse the Employee for, an amount up to such Excise Tax and any related
taxes, fees or penalties thereon as the Board may consider to be customary and
appropriate for a comparable public company; or

 

(b)  deemed to constitute
non-qualified deferred compensation subject to Section 409A of the Code,
Linn Energy or the Company, as the case may be, will have the discretion to
adjust the terms of such payment or benefit as it deems necessary to comply
with the requirements of Section 409A to avoid the imposition of any
excise tax or other penalty with respect to such payment or benefit under Section 409A
of the Code.

 

9

 

7.             Restrictive Covenants.

 

7.1           Confidential Information.  The
Employee hereby acknowledges that in connection with his employment by the
Company he will be exposed to and may obtain certain Confidential Information
(as defined below) (including, without limitation, procedures, memoranda,
notes, records and customer and supplier lists whether such information has
been or is made, developed or compiled by the Employee or otherwise has been or
is made available to him) regarding the business and operations of the Company
and its subsidiaries or affiliates. The Employee further acknowledges that such
Confidential Information is unique, valuable, considered trade secrets and
deemed proprietary by the Company. For purposes of their Agreement, “Confidential Information’’ includes,
without limitation, any information heretofore or hereafter acquired, developed
or used by any of the Company, Linn Energy or their direct or indirect
subsidiaries relating to Business Opportunities or Intellectual Property or
other geological, geophysical, economic, financial or management aspects of the
business, operations, properties or prospects of the Company, Linn Energy or
their direct or indirect subsidiaries, whether oral or in written form. The
Employee agrees that all Confidential information is and will remain the
property of the Company, Linn Energy or their direct or indirect subsidiaries,
as the case may be. The Employee further agrees, except for disclosures
occurring in the good faith performance of his duties for the Company, Linn
Energy or their direct or indirect subsidiaries, during the Employment Term and
for a period of two (2) years after the Termination Date, to hold in the
strictest confidence all Confidential Information, and not to, directly or
indirectly, duplicate, sell, use, lease, commercialize, disclose or otherwise
divulge to any person or entity any portion of the Confidential information or
use any Confidential Information, directly or indirectly, for his own benefit
or profit or allow any person, entity or third party, other than the Company,
Linn Energy or their direct or indirect subsidiaries and authorized executives
of the same, to use or otherwise gain access to any Confidential Information.
The Employee will have no obligation under this Agreement with respect to any
information that becomes generally available to the public other than as a
result of a disclosure by the Employee or his agent or other representative or
becomes available to the Employee on a non-confidential basis from a source
other than the Company, Linn Energy or their direct or indirect subsidiaries.
Further, the Employee will have no obligation under this Agreement to keep
confidential any of the Confidential Information to the extent that a
disclosure of it is required by law or is consented to by the Company or Linn
Energy; provided, however, that if and when such a disclosure is required by
law, the Employee promptly will provide the Company with notice of such
requirement, so that the Company may seek an appropriate protective order.

 

7.2           Return of Property.  Employee
agrees to deliver promptly to the Company, upon termination of his employment
hereunder, or at any other time when the Company so requests, all documents
relating to the business of the Company, Linn Energy or their direct or
indirect subsidiaries, including without limitation: all geological and
geophysical reports and related data such as maps, charts, logs, seismographs,
seismic records and other reports and related data, calculations, summaries,
memoranda and opinions relating to the foregoing, production records, electric
logs, core data, pressure data, lease files, well files and records, land
files, abstracts, title opinions, title or curative matters, contract files,
notes, records, drawings, manuals, correspondence, financial and accounting
information, customer lists, statistical data and compilations, patents,
copyrights, trademarks, trade names, inventions, formulae, methods, processes,
agreements, contracts, manuals or any documents relating to the business of the
Company, Linn Energy or their direct or indirect subsidiaries and all copies
thereof and therefrom; provided, however, that the Employee will be permitted
to retain copies of any

 

10

 

documents
or materials of a personal nature or otherwise related to the Employee’s rights
under this Agreement.

 

7.3           Non-Compete Obligations.

 

(a) Non-Compete
Obligations During Employment Term. The Employee agrees that during the
Employment Term:

 

(i)            the Employee will not, other than through the
Company, engage or participate in any manner, whether directly or indirectly
through any family member or as an employee, employer, consultant, agent, principal,
partner, more than one percent shareholder, officer, director, licensor,
lender, lessor or in any other individual or representative capacity, in any
business or activity which is engaged in leasing, acquiring, exploring,
producing, gathering or marketing hydrocarbons and related products; provided
that the foregoing shall not be deemed to restrain the participation by
Employee’s spouse in any capacity set forth above in any business or activity
engaged in any such activity and provided further that Linn Energy may, in good
faith, take such reasonable action with respect to Employee’s performance of
his duties, responsibilities and authorities as set forth in Sections 1.1 and
1.2 of this Agreement as it deems necessary and appropriate to protect its legitimate
business interests with respect to any actual or apparent conflict of interest
reasonably arising from or out of the participation by Employee’s spouse in any
such competitive business or activity; and

 

(ii)           all investments made by the Employee (whether in his own name or in the
name of any family members or other nominees or made by the Employee’s
controlled affiliates), which relate to the leasing, acquisition, exploration,
production, gathering or marketing of hydrocarbons and related products will be
made solely through the Company; and the Employee will not (directly or
indirectly through any family members or other persons), and will not permit
any of his controlled affiliates to: (A) invest or otherwise participate
alongside the Company or its direct or indirect subsidiaries in any Business
Opportunities, or (B) invest or otherwise participate in any business or
activity relating to a Business Opportunity, regardless of whether any of the
Company or its direct or indirect subsidiaries ultimately participates in such
business or activity, in either case, except through the Company.
Notwithstanding the foregoing, nothing in this Section 7.3 shall be deemed
to prohibit the Employee or any family member from owning, or otherwise having
an interest in, less than one percent (1 %) of any publicly-owned entity or
three percent (3%) or less of any private equity fund or similar investment
fund that invests in any business or activity engaged in any of the activities
set forth above, provided that Employee has no active role with respect to any
investment by such fund in any entity.

 

(b) Non-Compete
Obligations After Termination Date.  The
Employee agrees that the Employee will not engage or participate in any manner,
whether directly or indirectly through any family member or other person or as
an employee, employer, consultant, agent principal, partner, more than one
percent shareholder, officer, director, licensor, lender, lessor or in any
other individual or representative capacity:

 

(i)            during the one-year period following the
Termination Date, in any business or activity which is engaged in leasing,
acquiring, exploring, producing,

 

11

 

gathering or marketing hydrocarbons and related products within (A) any
county or parish in which the Company owns any oil and gas interests or
conducts operations on the Termination Date or in which the Company has owned
any oil and gas interests or conducted operations at any time during the six
months immediately preceding the Termination Date or (B) any county or
parish adjacent to any county or parish described in clause (A); and

 

(ii)           during the one-year period following the Termination Date, in any
business or activity which is in direct competition with the business of the
Company or its direct or indirect subsidiaries in the leasing, acquiring,
exploring, producing, gathering or marketing of hydrocarbons and related
products within the boundaries of, or within a two-mile radius of the
boundaries of, any mineral property interest of any of the Company or its
direct or indirect subsidiaries (including, without limitation, a mineral
lease, overriding royalty interest production payment net profits interest,
mineral fee interest or option or right to acquire any of the foregoing, or an
area of mutual interest as designated pursuant to contractual agreements
between the Company and any third party) or any other property on which any of
the Company or its direct or indirect subsidiaries has an option, right,
license or authority to conduct or direct exploratory activities, such as
three-dimensional seismic acquisition or other seismic, geophysical and
geochemical activities (but not including any preliminary geological mapping),
as of the Termination Date or as of the end of the six-month period following
such Termination Date; provided that, this subsection (ii) will not
preclude the Employee from making investments in securities of oil and gas
companies which are registered on a national stock exchange, if (A) the
aggregate amount owned by the Employee and all family members and affiliates
does not exceed 5% of such company’s outstanding securities, and (B) the
aggregate amount invested in such investments by the Employee and all family
members and affiliates after the date hereof does not exceed $500,000.

 

Notwithstanding
the foregoing, nothing in this Section 7.3 shall be deemed to restrain the
participation by Employee’s spouse in any capacity set forth above in any
business or activity described above.

 

(c) Not
Applicable Following Change of Control Termination.  The Employee will not be subject to
the covenants contained in this Section 7.3 and such covenants will
not be enforceable against the Employee from and after the date that the
Employee’s employment is terminated within one (1) year after a Change of
Control.

 

7.4           Non-Solicitation.  During
the Employment Term and for a period of twenty-four (24) months after the
Termination Date, the Employee will not, whether for his own account or for the
account of any other Person (other than the Company or its direct or indirect
subsidiaries), intentionally solicit, endeavor to entice away from the Company
or its direct or indirect subsidiaries, or otherwise interfere with the
relationship of the Company or its direct or indirect subsidiaries with, (a) any
person who is employed by the Company or its direct or indirect subsidiaries
(including any independent sales representatives or organizations), or (b) any
client or customer of the Company or its direct or indirect subsidiaries.

 

12

 

7.5           Assignment of Developments.  The
Employee assigns and agrees to assign without further compensation to the
Company and its successors, assigns or designees, all of the Employee’s right,
title and interest in and to all Business Opportunities and Intellectual
Property (as those terms are defined below), and further acknowledges and
agrees that all Business Opportunities and Intellectual Property constitute the
exclusive property of the Company.

 

For purposes of this Agreement, “Business
Opportunities” means all business ideas, prospects, proposals or
other opportunities pertaining to the lease, acquisition, exploration,
production, gathering or marketing of hydrocarbons and related products and the
exploration potential of geographical areas on which hydrocarbon exploration
prospects are located, which are developed by the Employee during the
Employment Term, or originated by any third party and brought to the attention
of the Employee during the Employment Term, together with information relating
thereto (including, without limitation, geological and seismic data and
interpretations thereof, whether In the form of maps, charts, logs,
seismographs, calculations, summaries, memoranda, opinions or other written or
charted means).

 

For purposes of this Agreement, “Intellectual
Property” shall mean all ideas, inventions, discoveries,
processes, designs, methods, substances, articles, computer programs and
improvements (Including, without limitation, enhancements to, or further
interpretation or processing of, information that was in the possession of the
Employee prior to the date of this Agreement), whether or not patentable or
copyrightable, which do not fall within the definition of Business Opportunities,
which the Employee discovers, conceives, invents, creates or develops, alone or
with others, during the Employment Term, if such discovery, conception,
invention, creation or development (A) occurs in the course of the
Employee’s employment with the Company, or (B) occurs with the use of any
of the time, materials or facilities of the Company or its direct or indirect
subsidiaries, or (C) in the good faith judgment of the Board, relates or
pertains in any material way to the purposes, activities or affairs of the
Company or its direct or indirect subsidiaries.

 

7.6           Injunctive Relief.  The
Employee acknowledges that a breach of any of the covenants contained in this Section 7
may result in material, irreparable injury to the Company for which there is no
adequate remedy at law, that it may not be possible to measure damages for such
injuries precisely and that, in the event of such a breach or threat of breach,
the Company may be entitled to obtain a temporary restraining order and/or a
preliminary or permanent injunction restraining the Employee from engaging in
activities prohibited by this Section 7 or such other relief as may
be required to specifically enforce any of the covenants in this Section 7.
To the extent that the Company seeks a temporary restraining order (but not a
preliminary or permanent Injunction), the Employee agrees that a temporary
restraining order may be obtained ex parte, to
the extent provided by Texas law.

 

7.7           Adjustment of Covenants.  The
parties consider the covenants and restrictions contained in this Section. 7
to be reasonable. However, if and when any such covenant or restriction is
found to be void or unenforceable and would have been valid had some part of it
been deleted or had its scope of application been modified, such covenant or
restriction will be deemed to have been applied with such modification as would
be necessary and consistent with the intent of the parties to have made it
valid, enforceable and effective.

 

13

 

7.8           Forfeiture Provision.

 

(a) Detrimental
Activities.  If the Employee
engages in any activity that violates any covenant or restriction contained in
this Section 7. in addition to any other remedy the Company may
have at law or in equity, (i) the Employee will be entitled to no further
payments or benefits from the
Company under this Agreement or otherwise, except for any payments or benefits
required to be made or provided under applicable law, (ii) all unexercised
Unit options, restricted Units and other forms of equity compensation held by
or credited to the Employee will terminate effective as of the date on which
the Employee engages in that activity, unless terminated sooner by operation of
another term or condition of this Agreement or other applicable plans and
agreements, and (iii) any exercise, payment or delivery pursuant to any
equity compensation award that occurred within one year prior to the date on
which the Employee engages in that activity may be rescinded within one year
after the first date that a majority of the members of the Board first became
aware that the Employee engaged in that activity. In the event of any such
rescission, the Employee will pay to the Company the amount of any gain
realized or payment received as a result of the rescinded exercise, payment or
delivery, in such manner and on such terms and conditions as may be required.

 

(b) Right
of Set-Off.  The Employee
consents to a deduction from any amounts the Company owes the Employee from
time to time (Including amounts owed
as wages or other compensation, fringe benefits, or vacation pay, as well as
any other amounts owed to the Employee by the Company), to the extent of the
amounts the Employee owes the Company under Section 7.8(a) above.
Whether or not the Company elects to make any set-off in whole or in part, if
the Company does not recover by means of set-off the full amount the Employee
owes, calculated as set forth above, the Employee agrees to pay immediately the
unpaid balance to the Company. In the discretion of the Board, reasonable
interest may be assessed on the amounts owed, calculated from the later of (i) the
date the Employee engages in the prohibited activity and (ii) the
applicable date of exercise, payment or delivery.

 

8.             Miscellaneous.

 

8.1           Assignment: Successors: Binding Agreement.  This
Agreement may not be assigned by either party, whether by operation of law or
otherwise, without the prior written consent of the other party, except that
any right, title or Interest of the Company arising out of this Agreement may
be assigned to any corporation or entity controlling, controlled by, or under
common control with the Company, or succeeding to the business and
substantially all of the assets of the Company or any affiliates for which the
Employee performs substantial services. Subject to the foregoing, this
Agreement will be binding upon and will inure to the benefit of the parties and
their respective heirs, legatees, devisees, personal representatives,
successors and assigns.

 

8.2           Modification and Waiver.  Except
as otherwise provided below, no provision of this Agreement may be modified,
waived, or discharged unless such waiver, modification or discharge is duly
approved by the Board and is agreed to in writing by the Employee and such
officer(s) as may be specifically authorized by the Board to effect it. No
waiver by any party of any breach by any other party of, or of compliance with,
any term or condition of this Agreement to be performed by any other party, at
any time, will use constitute a waiver of similar or dissimilar terms or
conditions at that time or at any prior or subsequent time.

 

8.3           Entire Agreement.  This
Agreement embodies the entire understanding of the parties hereof, and, upon
the Effective Date, will supersede all other oral or written agreements

 

14

 

or
understandings between them regarding the subject matter hereof. No agreement
or representation, oral or otherwise, express or implied, with respect to the
subject matter of this Agreement, has been made by either party which is not
set forth expressly in this Agreement.

 

8.4           Governing Law.  The
validity, interpretation, construction and performance of this Agreement will
be governed by the laws of the State of Texas other than the conflict of laws
provision thereof.

 

8.5           Consent to Jurisdiction and Service of
Process.

 

(a)  Section 7 Disputes.  In
the event of any dispute, controversy or claim between the Company and the
Employee arising out of or relating to the interpretation, application or
enforcement of the provisions of Section 7, the Company and the
Employee agree and consent to the personal jurisdiction of the state district
courts located within Harris County, Texas and/or the United States District
Court for the Southern District of Texas, Houston Division for resolution of
the dispute, controversy or claim, and that those courts, and only those
courts, will have jurisdiction to determine any dispute, controversy or claim
related to, arising under or in connection with Section 7 of this
Agreement. The Company and the Employee also agree that those courts are
convenient forums for the parties to any such dispute, controversy or claim and
for any potential witnesses and that process issued out of any such court or in
accordance with the rules of practice of that court may be served by mail
or other forms of substituted service to the Company at the address of its
principal executive offices and to the Employee at his last known address as
reflected in the Company’s records.

 

(b)  Disputes Other Than Under Section 7.  In the event of any dispute relating to this
Agreement, other than a dispute relating solely to Section 7, the parties
will use their best efforts to settle the dispute, claim, question, or
disagreement. To this effect, they will consult and negotiate with each other
in good faith and, recognizing their mutual interests, attempt to reach a just
and equitable solution satisfactory to both parties. If such a dispute cannot
be settled through negotiation, the parties agree first to try in good faith to
settle the dispute by mediation administered by the American Arbitration
Association under its Employment Mediation Procedures before resorting to
arbitration, litigation, or some other dispute resolution procedure. If the
parties do not reach such solution through negotiation or mediation within a
period of sixty (60) days, then, upon notice by either party to the other, all
disputes, claims, questions, or differences shall be resolved exclusively by
arbitration administered by the American Arbitration Association under the
Employment Arbitration Rules and before a single neutral arbitrator. If
arbitration is elected by one party, the other is bound to submit itself and
all disputes to arbitration. The arbitrator will be selected by agreement of
the parties or, if they do not agree on an arbitrator within thirty (30) days
after either party has notified the other of his or its desire to have the
question settled by arbitration, then the arbitrator will be selected pursuant
to the Employment Arbitration Rules of the American Arbitration
Association. The decision of the Arbitrator shall be final and binding, and may
be enforced in any court with jurisdiction. Unless otherwise mutually agreed by
the parties in writing, any such arbitration shall take place in Houston,
Texas.

 

8.6           Withholding of Taxes.  The
Company will withhold from any amounts payable under the Agreement all federal,
state, local or other taxes as legally will be required to be withheld.

 

15

 

8.7           Notices. All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when (a) delivered
by hand (with written confirmation of receipt), (b) sent by facsimile
(with written confirmation of receipt), provided that a copy is mailed by
registered mail, return receipt requested, or (c) when received by the
addressee, if sent by a nationally recognized overnight delivery service
(receipt requested). In each case to the appropriate addresses and facsimile
numbers set forth below (or to such other addresses and facsimile numbers as a
party may designate by notice to the other parties):

 

to the Company, to:

 

Attn: General Counsel

Linn Energy, LLC

650 Washington Road, Suite 800

Pittsburgh, Pennsylvania 15228

 

to the Employee, to:

 

Arden L. Walker, Jr.

4461 Bella Vista Circle

Farmington, New Mexico 87401

 

Addresses
may be changed by written notice sent to the other party at the last recorded
address of that party.

 

8.8           Severability.  The
invalidity or unenforceability of any provision or provisions of this Agreement
will not affect the validity or enforceability of any other provision of this
Agreement, which will remain in full force and effect.

 

8.9           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original but all of which together will constitute one and the
same Instrument.

 

8.10         Headings.  The headings used in this
Agreement are for convenience only, do not constitute a part of the Agreement,
and will not be deemed to limit, characterize, or affect in any way the
provisions of the Agreement, and all provisions of the Agreement will be
construed as if no headings had been used in the Agreement.

 

8.11         Construction.  As
used in this Agreement, unless the context otherwise requires: (a) the
terms defined herein will have the meanings set forth herein for all purposes; (b) references
to “Section” are to a section hereof; (c) “include,” “Includes” and “including”
are deemed to be followed by “without limitation” whether or not they are in
fact followed by such words or words of like import; (d) “writing,” “written”
and comparable terms refer to printing, typing, lithography and other means of
reproducing words in a visible form; (e) “hereof,” “herein.” “hereunder” and
comparable terms refer to the entirety of this Agreement and not to any
particular section or other subdivision hereof or attachment hereto; (f) references
to any gender include references to all genders; and (g) references to any
agreement or other instrument or statute or regulation are referred to as
amended or supplemented from time to time (and, in the case of a statute or
regulation, to any successor provision).

 

16

 

8.12         Capacity: No Conflicts. The Employee represents and warrants to the
Company that: (i) he has full power, authority and capacity to execute and
deliver this Agreement, and to perform his obligations hereunder, (ii) such
execution, delivery and performance will not (and with the giving of notice or
lapse of time, or both, would not) result in the breach of any agreement or
other obligation to which he is a party or Is otherwise bound, and (iii) this
Agreement is his valid and binding obligation, enforceable in accordance with
its terms.

 

17

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the 22 day of January, 2007.

 

	
   

  	
  LINN OPERATING, INC.

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Michael C. Linn

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael
  C. Linn

  
	
   

  	
  Title:

  	
  Chairman,
  President and Chief Executive

  
	
   

  	
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Arden
  L. Walker, Jr.

  
	
   

  	
   

  
	
   

  	
  For the limited purposes set forth herein:

  
	
   

  	
   

  
	
   

  	
  LINN ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael C. Linn

  
	
   

  	
  Name:

  	
  Michael
  C. Linn

  
	
   

  	
  Title:

  	
  Chairman,
  President and Chief Executive

  
	
   

  	
  Officer

  

 

18

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the 22nd day of
February, 2007.

 

	
   

  	
  LINN OPERATING, INC.

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael
  C. Linn

  
	
   

  	
  Title:

  	
  Chairman,
  President and Chief Executive

  
	
   

  	
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  /s/
  Arden L. Walker, Jr.

  
	
   

  	
  Arden
  L. Walker, Jr.

  
	
   

  	
   

  
	
   

  	
  For the limited purposes set forth herein:

  
	
   

  	
   

  
	
   

  	
  LINN ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Michael
  C. Linn

  
	
   

  	
  Title:

  	
  Chairman,
  President and Chief Executive

  
	
   

  	
  Officer

  

 

19Exhibit 10.15

 

Execution
Version

 

FIRST AMENDMENT

 

TO

 

THIRD AMENDED AND RESTATED
CREDIT AGREEMENT

 

Among

 

LINN ENERGY, LLC

as Borrower,

 

BNP PARIBAS,

as Administrative Agent,

 

and

 

The Lenders Signatory Hereto

 

Effective as of November 2,
2007

 

 

FIRST AMENDMENT TO THIRD AMENDED AND RESTATED
CREDIT AGREEMENT

 

This FIRST AMENDMENT TO THIRD AMENDED AND RESTATED
CREDIT AGREEMENT (this “First Amendment”) executed effective as
of November 2, 2007 (the “First Amendment Effective Date”) is among
LINN ENERGY, LLC, a limited liability company formed under the laws of the
State of Delaware (the “Borrower”); each of the undersigned guarantors
(the “Guarantors”, and together with the Borrower, the “Obligors”);
each of the Lenders that is a signatory hereto; and BNP PARIBAS, as
administrative agent for the Lenders (in such capacity, together with its
successors, the “Administrative Agent”).

 

Recitals

 

A.            The Borrower, the Administrative Agent and the Lenders
are parties to that certain Third Amended and Restated Credit Agreement dated
as of August 31, 2007 (as amended, the “Credit Agreement”),
pursuant to which the Lenders have made certain credit available to and on
behalf of the Borrower.

 

B.            The Borrower has requested and the Administrative Agent
and the Lenders have agreed to amend certain provisions of the Credit
Agreement.

 

C.            NOW, THEREFORE, in consideration of the premises and the
mutual covenants herein contained, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

Section 1.               Defined
Terms.  Each capitalized term which
is defined in the Credit Agreement, but which is not defined in this First
Amendment, shall have the meaning ascribed such term in the Credit
Agreement.  Unless otherwise indicated,
all section references in this First Amendment refer to the Credit Agreement.

 

Section 2.               Amendments to Credit Agreement.

 

2.1           Definitions. 
Section 1.02 is hereby amended by adding or amending and restating
the following definitions:

 

“ ‘Agreement’ means this
Third Amended and Restated Credit Agreement, as amended by that certain First
Amendment to Third Amended and Restated Credit Agreement, dated as of November 2,
2007, and as the same may from time to time be further amended, modified,
supplemented or restated.”

 

“ ‘Investment’ means, for any
Person: (a) the acquisition (whether for cash, Property, services or
securities or otherwise) of Equity Interests of any other Person or any
unfunded subscription agreement to make any such acquisition or fund capital
calls (including, without limitation, any “short sale” or any sale of any
securities at a time when such securities are not owned by the Person entering
into such short sale, but excluding any unconsummated purchase and sale
agreements to purchase all or substantially all the Equity Interests of Persons

 

2

 

owning Oil and Gas Properties); (b) the
making of any deposit with, or advance, loan or capital contribution to,
assumption of Debt of, purchase or other acquisition of any other Debt or
equity participation or interest in, or other extension of credit to, any other
Person (including the purchase of Property from another Person subject to an
understanding or agreement, contingent or otherwise, to resell such Property to
such Person, but excluding any such advance, loan or extension of credit having
a term not exceeding ninety (90) days representing the purchase price of
inventory or supplies sold by such Person in the ordinary course of business); (c) the
purchase or acquisition (in one or a series of transactions) of Property of
another Person that constitutes a business unit or (d) the entering into
of any guarantee of, or other contingent obligation (including the deposit of
any Equity Interests to be sold) with respect to, Debt or other liability of
any other Person and (without duplication) any amount committed to be advanced,
lent or extended to such Person.”

 

2.2               Section 9.05.  Section 9.05(g) is hereby amended
and restated in its entirety as follows:

 

“(g)         Investments (i) made by the
Borrower in or to the Guarantors, (ii) made by any Subsidiary in or to the
Borrower or any Guarantor, (iii) made by the Borrower or any Guarantor in
any Person that owns Oil and Gas Properties which are overriding royalty,
royalty interests or other similar non-cost bearing interests and which do not
own other material Properties, provided, that after the consummation of such
Investment (A) the Borrower and its Subsidiaries are in compliance with
all covenants under this Agreement and (B) such Person promptly becomes a
Guarantor or is promptly dissolved into a Guarantor or the Borrower and (iv) made
by the Borrower or any Guarantor in Subsidiaries that are not Guarantors,
provided that the aggregate of all Investments made by the Borrower and the
Guarantors in or to all Subsidiaries that are not Guarantors shall not exceed
$10,000,000 at any time.

 

2.3           Section 9.18.  Section 9.18(a)(iii) is hereby
amended and restated in its entirety as follows:

 

“(iii) the notional
volumes for which do not exceed the current net monthly production (regardless
of projected production levels) at the time such Swap Agreement is executed,
calculated separately for each of crude oil and natural gas, provided, that the
foregoing shall not prevent the Borrower from entering into forward agreements
in respect of commodity Swap Agreements in respect of future projected volumes
from Oil and Gas Properties subject to the Dominion Production Payment, so long
as the notional volumes under such forward agreements do not exceed the
reasonably anticipated net monthly production for all calculation periods under
such forward agreements, calculated separately for each of crude oil and
natural gas.”

 

3

 

Section 3.               Conditions Precedent.  The effectiveness of this First Amendment is
subject to the receipt by the Administrative Agent of the following documents
and satisfaction of the other conditions provided in this Section 3, each
of which shall be reasonably satisfactory to the Administrative Agent in form
and substance:

 

3.1           Payment
by the Borrower to the Administrative Agent of all fees and other amounts due
and payable on or prior to the First Amendment Effective Date, including, to
the extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrower.

 

3.2           The
Administrative Agent shall have received multiple counterparts as requested of
this First Amendment from the Majority Lenders.

 

3.3           The
Administrative Agent shall have received such other documents as the
Administrative Agent or special counsel to the Administrative Agent may
reasonably request.

 

3.4           No
Default or Event of Default shall have occurred and be continuing as of the
First Amendment Effective Date.

 

Section 4.               Representations and Warranties; Etc.  Each Obligor hereby affirms:  (a) that as of the date of execution and
delivery of this First Amendment, all of the representations and warranties
contained in each Loan Document to which such Obligor is a party are true and
correct in all material respects as though made on and as of the First
Amendment Effective Date (unless made as of a specific earlier date, in which
case, was true as of such date); and (b) that after giving effect to this
First Amendment and to the transactions contemplated hereby, no Defaults exist
under the Loan Documents or will exist under the Loan Documents.

 

Section 5.               Miscellaneous.

 

5.1           Confirmation.  The provisions of the Credit Agreement (as
amended by this First Amendment) shall remain in full force and effect in
accordance with its terms following the effectiveness of this First Amendment.

 

5.2           Ratification
and Affirmation of Obligors.  Each of
the Obligors hereby expressly (i) acknowledges the terms of this First
Amendment, (ii) ratifies and affirms its obligations under the Guarantee
Agreement and the other Security Instruments to which it is a party, (iii) acknowledges,
renews and extends its continued liability under the Guarantee Agreement and the
other Security Instruments to which it is a party and agrees that its guarantee
under the Guarantee Agreement and the other Security Instruments to which it is
a party remains in full force and effect with respect to the Indebtedness as
amended hereby.

 

5.3           Counterparts.  This First Amendment may be executed by one
or more of the parties hereto in any number of separate counterparts, and all
of such counterparts taken together shall be deemed to constitute one and the
same instrument.

 

4

 

5.4           No Oral Agreement.  THIS WRITTEN FIRST AMENDMENT, THE CREDIT
AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND
THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

 

5.5           Governing Law.  THIS FIRST AMENDMENT (INCLUDING, BUT NOT
LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment
to be duly executed effective as of the date first written above.

 

	
  BORROWER:

  	
  LINN ENERGY, LLC

  
	
   

  
	
   

  
	
   

  	
  By:

  	
      /s/
  Kolja Rockov

  
	
   

  	
   

  	
  Kolja
  Rockov, Executive Vice President

  
	
   

  	
   

  	
  and Chief
  Financial Officer

  
				

 

	
  GUARANTORS:

  	
  LINN ENERGY HOLDINGS, LLC

  
	
   

  	
  LINN OPERATING, INC.

  
	
   

  	
  PENN WEST PIPELINE, LLC

  
	
   

  	
  MID ATLANTIC WELL SERVICE, INC.

  
	
   

  	
  MID-CONTINENT HOLDINGS I, LLC

  
	
   

  	
  MID-CONTINENT HOLDINGS II, LLC

  
	
   

  	
  MID-CONTINENT I, LLC

  
	
   

  	
  MID-CONTINENT II, LLC

  
	
   

  	
  LINN GAS MARKETING, LLC

  
	
   

  	
  LINN EXPLORATION MIDCONTINENT,

  LLC

  

 

 

	
   

  	
  By:

  	
        /s/
  Kolja Rockov

  
	
   

  	
  Kolja Rockov

  
	
   

  	
  Executive
  Vice President and Chief

  
	
   

  	
  Financial
  Officer

  

 

First
Amendment

 

6

 

	
   

  	
  BNP PARIBAS,
  as Administrative Agent and a

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Doug Liftman

  
	
   

  	
  Name:

  	
  Doug
  Liftman

  
	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Betsy Jocher

  
	
   

  	
  Name:

  	
  Betsy
  Jocher

  
	
   

  	
  Title:

  	
  Director

  

 

7

 

	
   

  	
  ROYAL BANK OF CANADA, as
  Syndication

  
	
   

  	
  Agent
  and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Don J. McKinnerney

  
	
   

  	
  Name:

  	
  Don
  J. McKinnerney

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  

 

8

 

	
   

  	
  SOCIETE GENERALE, as
  a Co-Documentation

  
	
   

  	
  Agent
  and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Elena Robciuc

  
	
   

  	
  Name:

  	
  Elena
  Robciuc

  
	
   

  	
  Title:

  	
  Director

  

 

9

 

	
   

  	
  COMERICA BANK, as
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Huma V. Manal

  
	
   

  	
  Name:

  	
  Huma
  V. Manal

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

10

 

	
   

  	
  FORTIS CAPITAL CORP., as
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  David Montgomery

  
	
   

  	
  Name:

  	
  David
  Montgomery

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
               /s/
  Darrell Holley

  
	
   

  	
  Name:

  	
  Darrell
  Holley

  
	
   

  	
  Title:

  	
  Managing
  Director

  

 

11

 

	
   

  	
  CITIBANK, NA, as
  a Co-Documentation Agent

  
	
   

  	
  and
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Thomas Benavides

  
	
   

  	
  Name:

  	
  Thomas
  Benavides

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

12

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION, as a

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Thomas Rajan

  
	
   

  	
  Name:

  	
  Thomas
  Rajan

  
	
   

  	
  Title:

  	
  Director

  

 

13

 

	
   

  	
  WACHOVIA BANK, N.A.,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Leanne S. Phillips

  
	
   

  	
  Name:

  	
  Leanne
  S. Phillips

  
	
   

  	
  Title:

  	
  Director

  

 

14

 

	
   

  	
  BMO CAPITAL MARKETS FINANCING,

  
	
   

  	
  INC., as a
  Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  James V. Ducote

  
	
   

  	
  Name:

  	
  James
  V. Ducote

  
	
   

  	
  Title:

  	
  Director

  

 

15

 

	
   

  	
  CREDIT SUISSE CAYMAN ISLANDS

  
	
   

  	
  BRANCH, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
              /s/
  Vanessa Gomez

  
	
   

  	
  Name:

  	
  Vanessa
  Gomez

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Morenikeji Ajayi

  
	
   

  	
  Name:

  	
  Morenikeji
  Ajayi

  
	
   

  	
  Title:

  	
  Associate

  

 

16

 

	
   

  	
  COMPASS
  BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dorothy Marchand

  
	
   

  	
  Name:

  	
  Dorothy
  Marchand

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  

 

17

 

	
   

  	
  DnB NOR
  BANK ASA, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Tangen

  
	
   

  	
  Name:

  	
  Thomas Tangen

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Asa Jemseby Rodgers

  
	
   

  	
  Name:

  	
  Asa Jemseby
  Rodgers

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

18

 

	
   

  	
  DZ BANK
  AG, DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK, FRANKFURT

  AM MAIN, NEW YORK BRANCH, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daria A. Plahle

  
	
   

  	
  Name:

  	
  Daria A.
  Plahle

  
	
   

  	
  Title:

  	
  First Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Avery B. Snead

  
	
   

  	
  Name:

  	
  Avery B.
  Snead

  
	
   

  	
  Title:

  	
  Assistant
  Treasurer

  

 

19

 

	
   

  	
  GUARANTY
  BANK, FSB, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David M. Butler

  
	
   

  	
  Name:

  	
  David M.
  Butler

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

20

 

	
   

  	
  LEHMAN
  BROTHERS COMMERCIAL

  BANK, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian McNany

  
	
   

  	
  Name:

  	
  Brian McNany

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  

 

21

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Kamauf

  
	
   

  	
  Name:

  	
  Michael A.
  Kamauf

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

22

 

	
   

  	
  THE
  ROYAL BANK OF SCOTLAND plc, as a 

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lucy Walker

  
	
   

  	
  Name:

  	
  Lucy Walker

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

23

 

	
   

  	
  RZB
  FINANCE LLC, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Shirley Ritch

  
	
   

  	
  Name:

  	
  Shirley Ritch

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicolas M. Moriatis

  
	
   

  	
  Name:

  	
  Nicolas M.
  Moriatis

  
	
   

  	
  Title:

  	
  Group Vice
  President

  
	
   

  	
   

  	
  Controller

  

 

24

 

	
   

  	
  UNION
  BANK OF CALIFORNIA, N.A., as a

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Gildea

  
	
   

  	
  Name:

  	
  Scott Gildea

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

25

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as a

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Justin M. Alexander

  
	
   

  	
  Name:

  	
  Justin M.
  Alexander

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

26

 

	
   

  	
  CALYON
  NEW YORK BRANCH, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tom Byargeon

  
	
   

  	
  Name:

  	
  Tom Byargeon

  
	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sharada Manne

  
	
   

  	
  Name:

  	
  Sharada
  Manne

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

27

 

	
   

  	
  THE BANK
  OF NOVA SCOTIA, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew Ostrov

  
	
   

  	
  Name:

  	
  Andrew
  Ostrov

  
	
   

  	
  Title:

  	
  Director

  

 

28

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dusan Lazarov

  
	
   

  	
  Name:

  	
  Dusan
  Lazarov

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carin Keegan

  
	
   

  	
  Name:

  	
  Carin Keegan

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

29

 

	
   

  	
  ALLIED
  IRISH BANKS P.L.C., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark Connelly

  
	
   

  	
  Name:

  	
  Mark
  Connelly

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward M. Fenk

  
	
   

  	
  Name:

  	
  Edward Fenk

  
	
   

  	
  Title:

  	
  Vice President

  

 

30

 

	
   

  	
  WESTLB
  AG, NEW YORK BRANCH, as a 

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Duncan Robertson

  
	
   

  	
  Name:

  	
  Duncan
  Robertson

  
	
   

  	
  Title:

  	
  Executive
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Paul Vastola

  
	
   

  	
  Name:

  	
  Paul Vastola

  
	
   

  	
  Title:

  	
  Director

  

 

31

 

	
   

  	
  SUNTRUST
  BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Sean Roche

  
	
   

  	
  Name:

  	
  Sean Roche

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

32

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]