Document:

EX-10.1

 

Exhibit 10.1

Execution Copy

CLASS B UNIT AND UNIT PURCHASE AGREEMENT

BY AND AMONG

LINN ENERGY, LLC

AND

THE PURCHASERS NAMED HEREIN

 

 

CLASS B UNIT AND UNIT PURCHASE AGREEMENT

     CLASS B UNIT AND UNIT PURCHASE AGREEMENT, dated as of October 24, 2006 (this
“Agreement”), by and among LINN ENERGY, LLC, a Delaware limited liability company
(“Linn”), and each of ZLP Fund, L.P. (“ZLP”), Credit Suisse Management LLC
(“CSM”), Structured Finance Americas, LLC (“SFA”), Royal Bank of Canada by its
agent RBC Capital Markets Corporation (“RBC”), Lehman Brothers MLP Partners, L.P.
(“LB”), B Y Partners, L.P. (“BY”), Brahman Partners II, L.P. (“BP II”),
Brahman Partners III, L.P. (“BP III”), Brahman Partners IV, L.P. (“BP IV”), Brahman
C.P.F. Partners, L.P. (“BCPFP”), GPS Income Fund LP (“GPSIF”), GPS High Yield
Equities Fund LP (“GPSHVEF”), GPS Income fund (Cayman) LTD (“GPSIF Cayman”), HFR
RVA GPS Master Trust (“HFR”), Ben Van de Bunt and Laura Fox Living Trust DTD 10/01/98
(“BVB”), Knee Family Trust DTD 3/7/00 (“KFT”), Stockbridge 1, LLC
(“Stockbridge”), Goldman, Sachs & Co., on
behalf of its Principal Strategies Group (“GSC”), Magnetar Capital Fund, L.P.
(“MCF”), Alerian Focus Partners LP (“AFP”), Alerian Opportunity Partners III LP
(“AOP”), Alerian Capital Partners LP (“ACP”), RCH Energy MLP Fund, LP
(“RCH”), Strome MLP Fund, L.P. (“Strome”) and Locust Wood Capital, LP
(“LWC”) (each of ZLP, CSM, SFA, RBC, LB, BY, BP II, BP III, BP IV, BCPFP, GPSIF, GPSHVEF,
GPSIF Cayman, HFR, BVB, KFT, Stockbridge, GSC, MCF, AFP, AOP, ACP, RCH, Strome and LWC, a
“Purchaser” and, collectively, the “Purchasers”).

     WHEREAS, on August 1, 2006, Linn acquired, directly, certain affiliated entities of Blacksand
Energy, LLC, a Delaware limited liability company (the “Blacksand Acquisition”);

     WHEREAS, on August 14, 2006, Linn acquired, indirectly through a wholly-owned subsidiary,
certain Mid-Continent assets of Kaiser-Francis Oil Company, a Delaware corporation (the “Kaiser
Acquisition”);

     WHEREAS, Linn desires to repay a portion of the debt incurred to finance the Blacksand
Acquisition and the Kaiser Acquisition out of the proceeds of the sale of an aggregate of
approximately $305,000,000 of Class B Units and Units, and the Purchasers desire to purchase an
aggregate of approximately $305,000,000 of Class B Units and Units from Linn, each in accordance
with the provisions of this Agreement;

     WHEREAS, Linn has agreed to provide the Purchasers with certain registration rights with
respect to the Purchased Units acquired pursuant to this Agreement; and

     WHEREAS, Linn has delivered a Voting Agreement (the “Unitholder Voting Agreement”)
with Quantum Energy Partners II, LP, a Delaware limited partnership, Michael C. Linn, Kolja Rockov,
Lisa D. Anderson and Roland P. Keddie pursuant to which each such unitholder of Linn has
unconditionally and irrevocably agreed to vote all of the Units owned by it in favor of the
conversion of Class B Units into Units as contemplated by Section 5.01 of this Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Linn and each of the Purchasers, severally and not jointly, hereby agree as follows:

 

 

ARTICLE I

DEFINITIONS

     Section 1.01. Definitions. As used in this Agreement, and unless the context requires
a different meaning, the following terms have the meanings indicated:

     “8-K Filing” shall have the meaning specified in Section 5.06.

     “Action” against a Person means any lawsuit, action, proceeding, investigation or
complaint before any Governmental Authority, mediator or arbitrator.

     “Affiliate” means, with respect to a specified Person, any other Person, whether now
in existence or hereafter created, directly or indirectly controlling, controlled by or under
direct or indirect common control with such specified Person. For purposes of this definition,
“control” (including, with correlative meanings, “controlling”, “controlled by” and “under common
control with”) means the power to direct or cause the direction of the management and policies of
such Person, directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise.

     “Agreement” shall have the meaning specified in the introductory paragraph.

     “Basic Documents” means, collectively, this Agreement, the Registration Rights
Agreement, the Unitholder Voting Agreement, the Class B Amendment and any and all other agreements
or instruments executed and delivered by the Parties to evidence the execution, delivery and
performance of this Agreement, and any amendments, supplements, continuations or modifications
thereto.

     “Blacksand Acquisition” shall have the meaning specified in the recitals.

     “Board of Directors” means the board of directors of Linn.

     “Business Day” means any day other than a Saturday, a Sunday, or a legal holiday for
commercial banks in Houston, Texas.

     “Buy-In” shall have the meaning specified in Section 8.08.

     “Buy-In Price” shall have the meaning specified in Section 8.08.

     “Class B Amendment” shall have the meaning specified in Section 2.01(a).

     “Class B Unit Price” shall have the meaning specified in Section 2.01(c).

     “Class B Units” means the Class B Units of Linn, as established by the Class B
Amendment.

     “Closing” shall have the meaning specified in Section 2.02.

     “Closing Date” shall have the meaning specified in Section 2.02.

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     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Commission” means the United States Securities and Exchange Commission.

     “Commitment Amount” means the dollar amount set forth opposite each Purchaser’s name
on Schedule 2.01 to this Agreement.

     “Delaware LLC Act” shall have the meaning specified in Section 3.02(a).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations of the Commission promulgated thereunder.

     “GAAP” means generally accepted accounting principles in the United States of America
in effect from time to time.

     “Governmental Authority” shall include the country, state, county, city and political
subdivisions in which any Person or such Person’s Property is located or that exercises valid
jurisdiction over any such Person or such Person’s Property, and any court, agency, department,
commission, board, bureau or instrumentality of any of them and any monetary authorities that
exercise valid jurisdiction over any such Person or such Person’s Property. Unless otherwise
specified, all references to Governmental Authority herein shall mean a Governmental Authority
having jurisdiction over, where applicable, Linn, its Subsidiaries or any of their Property or any
of the Purchasers.

     “Indemnified Party” shall have the meaning specified in Section 7.03.

     “Indemnifying Party” shall have the meaning specified in Section 7.03.

     “Kaiser Acquisition” shall have the meaning specified in the recitals.

     “Law” means any federal, state, local or foreign order, writ, injunction, judgment,
settlement, award, decree, statute, law, rule or regulation.

     “Lien” means any interest in Property securing an obligation owed to, or a claim by, a
Person other than the owner of the Property, whether such interest is based on the common law,
statute or contract, and whether such obligation or claim is fixed or contingent, and including the
lien or security interest arising from a mortgage, encumbrance, pledge, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes.

     “Limited Liability Company Agreement” shall have the meaning specified in Section
2.01(a).

     “Linn” shall have the meaning specified in the introductory paragraph.

     “Linn Financial Statements” shall have the meaning specified in Section 3.03.

     “Linn Material Adverse Effect” means any material and adverse effect on (i) the
assets, liabilities, financial condition, business, operations, prospects or affairs of Linn and
its

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Subsidiaries, taken as a whole, measured against those assets, liabilities, financial
condition, business, operations, prospects or affairs reflected in the Linn SEC Documents, (ii) the
ability of Linn and its Subsidiaries, taken as a whole, to carry out their business as of the date
of this Agreement or to meet their obligations under the Basic Documents on a timely basis or (iii)
the ability of Linn to consummate the transactions under any Basic Document.

     “Linn Related Parties” shall have the meaning specified in Section 7.02.

     “Linn SEC Documents” shall have the meaning specified in Section 3.03.

     “Lock-Up Date” means the earlier of (i) 90 days from the Closing Date or (ii) the date
that a registration statement under the Securities Act to permit resale of the Purchased Units is
declared effective by the Commission.

     “Party” or “Parties” means Linn and the Purchasers, individually or
collectively, as the case may be.

     “Person” means any individual, corporation, company, voluntary association,
partnership, joint venture, trust, limited liability company, unincorporated organization or
government or any agency, instrumentality or political subdivision thereof, or any other form of
entity.

     “Property” means any interest in any kind of property or asset, whether real, personal
or mixed, or tangible or intangible.

     “Purchase Price” means the aggregate of each Purchaser’s Commitment Amount.

     “Purchased Class B Units” means the Class B Units to be issued and sold to the
Purchasers pursuant to this Agreement.

     “Purchased Units” means the Units to be issued and sold to the Purchasers pursuant to
this Agreement.

     “Purchaser” shall have the meaning specified in the introductory paragraph.

     “Purchaser Material Adverse Effect” means any material and adverse effect on (i) the
ability of a Purchaser to meet its obligations under the Basic Documents on a timely basis or (ii)
the ability of a Purchaser to consummate the transactions under any Basic Document.

     “Purchaser Related Parties” shall have the meaning specified in Section 7.01.

     “Purchasers” shall have the meaning specified in the introductory paragraph.

     “Registration Rights Agreement” means the Registration Rights Agreement, substantially
in the form attached to this Agreement as Exhibit C, to be entered into at the Closing,
among Linn and the Purchasers.

     “Representatives” of any Person means the officers, directors, employees, agents and
other representatives of such Person.

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     “Securities Act” means the Securities Act of 1933, as amended from time to time, and
the rules and regulations of the Commission promulgated thereunder.

     “Subsidiary” means, as to any Person, any corporation or other entity of which a
majority of the outstanding equity interest having by the terms thereof ordinary voting power to
elect a majority of the board of directors of such corporation or other entity (irrespective of
whether or not at the time any equity interest of any other class or classes of such corporation or
other entity shall have or might have voting power by reason of the happening of any contingency)
is at the time directly or indirectly owned or controlled by such Person or one or more of its
Subsidiaries.

     “Unit Price” shall have the meaning specified in Section 2.01(c).

     “Unitholder Voting Agreement” shall have the meaning specified in the recitals.

     “Unitholders” means the Unitholders of Linn (within the meaning of the Limited
Liability Company Agreement).

     “Units” means the Units of Linn representing limited liability company interests.

     Section 1.02. Accounting Procedures and Interpretation. Unless otherwise specified in
this Agreement, all accounting terms used herein shall be interpreted, all determinations with
respect to accounting matters under this Agreement shall be made, and all financial statements and
certificates and reports as to financial matters required to be furnished to the Purchasers under
this Agreement shall be prepared, in accordance with GAAP applied on a consistent basis during the
periods involved (except, in the case of unaudited statements, as permitted by Form 10-Q
promulgated by the Commission) and in compliance as to form in all material respects with
applicable accounting requirements and with the published rules and regulations of the Commission
with respect thereto.

ARTICLE II

SALE AND PURCHASE

     Section 2.01. Sale and Purchase. Subject to the terms and conditions of this
Agreement, at the Closing, Linn hereby agrees to issue and sell to each Purchaser, and each
Purchaser hereby agrees, severally and not jointly, to purchase from Linn, the number of Purchased
Units and Purchased Class B Units, respectively, set forth opposite its name on Schedule 2.01
hereto. Each Purchaser agrees to pay Linn the Unit Price for each Purchased Unit and the Class B
Unit Price for each Purchased Class B Unit, in each case, as set forth in Section 2.01(c). The
respective obligations of each Purchaser under this Agreement are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the
performance of the obligations of any other Purchaser under this Agreement. The failure or waiver
of performance under this Agreement by any Purchaser, or on its behalf, does not excuse performance
by any other Purchaser. Nothing contained herein or in any other Basic Document, and no action
taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by any Basic Document. Except as otherwise provided in this
Agreement or the other Basic Documents, each Purchaser shall be entitled to

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independently protect and enforce its rights, including the rights arising out of this
Agreement or out of the other Basic Documents, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for such purpose.

          (a) Units. The number of Purchased Units to be issued and sold to each Purchaser is
set forth opposite such Purchaser’s name on Schedule 2.01 hereto. The Purchased Units shall have
those rights, preferences, privileges and restrictions governing the Units as set forth in the
Second Amended and Restated Limited Liability Company Agreement of Linn, dated as of January 19,
2006 (the “Limited Liability Company Agreement”), as amended by an amendment to the Limited
Liability Company Agreement, in all material respects in the form of Exhibit A to this
Agreement, which Linn will cause to be adopted immediately prior to the issuance and sale of Class
B Units contemplated by this Agreement (the “Class B Amendment”). References herein to the
Limited Liability Company Agreement shall include or exclude the Class B Amendment as the context
requires.

          (b) Class B Units. The number of Purchased Class B Units to be issued and sold to
each Purchaser is set forth opposite such Purchaser’s name on Schedule 2.01 hereto. The Purchased
Class B Units shall have those rights, preferences, privileges and restrictions governing the Class
B Units, which shall be reflected in the Limited Liability Company Agreement, as amended by the
Class B Amendment.

          (c) Consideration. The amount per Unit each Purchaser will pay to Linn to purchase
the Purchased Units (the “Unit Price”) shall be $21.00. The amount per Class B Unit each
Purchaser will pay to Linn to purchase the Purchased Class B Units (the “Class B Unit
Price”) shall be $20.55.

     Section 2.02. Closing. The execution and delivery of the Basic Documents (other than
this Agreement), the delivery of certificates representing the Purchased Class B Units and the
Purchased Units, the payment by each Purchaser of its respective Commitment Amount and execution
and delivery of all other instruments, agreements and other documents required by this Agreement
(the “Closing”) shall take place on October 24, 2006 (the “Closing Date”).

     Section 2.03. Termination. Notwithstanding anything to the contrary, in the event
that less than 100% of the Purchase Price is received by Linn on the purported Closing Date, this
Agreement shall automatically terminate and any payments of a Purchaser’s Commitment Amount
received by Linn shall be returned to such Purchaser.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF LINN

     Linn represents and warrants to the Purchasers, on and as of the date of this Agreement and on
and as of the Closing Date, as follows:

     Section 3.01. Corporate Existence. Linn: (i) is a limited liability company duly
organized, validly existing and in good standing under the Laws of the State of Delaware; (ii) has
all requisite limited liability company power, and has all material governmental licenses,
authorizations, consents and approvals, necessary to own its Properties and carry on its business
as its business is now being conducted as described in the Linn SEC Documents, except where

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the failure to obtain such licenses, authorizations, consents and approvals would not
reasonably be expected to have a Linn Material Adverse Effect; and (iii) is qualified to do
business in all jurisdictions in which the nature of the business conducted by it makes such
qualifications necessary, except where failure so to qualify would not reasonably be expected to
have a Linn Material Adverse Effect.

     Section 3.02. Capitalization and Valid Issuance of Purchased Class B Units and Purchased
Units.

          (a) As of the date of this Agreement, and prior to the issuance and sale of the Purchased
Class B Units and the Purchased Units, the issued and outstanding membership interests of Linn
consist of 27,882,500 Units. All of the outstanding Units have been duly authorized and validly
issued in accordance with applicable Law and the Limited Liability Company Agreement and are fully
paid (to the extent required under the Limited Liability Company Agreement) and non-assessable
(except as such non-assessability may be affected by Section 18-607 of the Delaware Limited
Liability Company Act (the “Delaware LLC Act”).

          (b) Other than Linn’s existing (i) Long-Term Incentive Plan and (ii) Memorandum of
Understanding Regarding Compensation Arrangements for Members of its Board of Directors, Linn has
no equity compensation plans that contemplate the issuance of Units (or securities convertible into
or exchangeable for Units). Linn has no outstanding indebtedness having the right to vote (or
convertible into or exchangeable for securities having the right to vote) on any matters on which
the Unitholders may vote. Except as set forth in the first sentence of this Section 3.02(b), as
contemplated by this Agreement or as are contained in the Limited Liability Company Agreement,
there are no outstanding or authorized (i) options, warrants, preemptive rights, subscriptions,
calls or other rights, convertible securities, agreements, claims or commitments of any character
obligating Linn or any of its Subsidiaries to issue, transfer or sell any limited liability company
interests or other equity interests in Linn or any of its Subsidiaries or securities convertible
into or exchangeable for such limited liability company interests or other equity interests, (ii)
obligations of Linn or any of its Subsidiaries to repurchase, redeem or otherwise acquire any
limited liability company interests or other equity interests in Linn or any of its Subsidiaries or
any such securities or agreements listed in clause (i) of this sentence or (iii) voting trusts or
similar agreements to which Linn or any of its Subsidiaries is a party with respect to the voting
of the equity interests of Linn or any of its Subsidiaries.

          (c) (i) All of the issued and outstanding equity interests of each of Linn’s Subsidiaries are
owned, directly or indirectly, by Linn free and clear of any Liens (except for such restrictions as
may exist under applicable Law and except for such Liens as may be imposed under Linn’s or Linn’s
Subsidiaries’ credit facilities filed as exhibits to the Linn SEC Documents), and all such
ownership interests have been duly authorized and validly issued and are fully paid (to the extent
required by the organizational documents of Linn’s Subsidiaries, as applicable) and non-assessable
(except as non-assessability may be affected by Section 18-607 of the Delaware LLC Act or the
organizational documents of Linn’s Subsidiaries, as applicable) and free of preemptive rights, with
no personal liability attaching to the ownership thereof, and (ii) except as disclosed in the Linn
SEC Documents, neither Linn nor any of its Subsidiaries

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owns any shares of capital stock or other securities of, or interest in, any other Person, or
is obligated to make any capital contribution to or other investment in any other Person.

          (d) The offer and sale of the Purchased Class B Units and the Purchased Units and the
membership interests represented thereby will be duly authorized by Linn pursuant to the Limited
Liability Company Agreement prior to the Closing and, when issued and delivered to the Purchasers
against payment therefor in accordance with the terms of this Agreement, will be validly issued,
fully paid (to the extent required by the Limited Liability Company Agreement) and non-assessable
(except as such non-assessability may be affected by Section 18-607 of the Delaware LLC Act) and
will be free of any and all Liens and restrictions on transfer, other than restrictions on transfer
under the Limited Liability Company Agreement, the Registration Rights Agreement and applicable
state and federal securities Laws and other than such Liens as are created by the Purchasers.

          (e) The Units issuable upon conversion of the Class B Units, and the membership interests
represented thereby, upon issuance in accordance with the terms of the Class B Units as reflected
in the Class B Amendment, and upon receipt of the required Unitholder approval, will be duly
authorized by Linn pursuant to the Limited Liability Company Agreement, and will be validly issued,
fully paid (to the extent required by applicable Law and the Limited Liability Company Agreement)
and non-assessable (except as such non-assessability may be affected by Section 18-607 of the
Delaware LLC Act) and will be free of any and all Liens and restrictions on transfer, other than
restrictions on transfer under the Limited Liability Company Agreement and under applicable state
and federal securities Laws and other than such Liens as are created by the Purchasers.

          (f) The Purchased Units will be issued in compliance with all applicable rules of The Nasdaq
Global Market. Linn has submitted to The Nasdaq Global Market a Notification Form: Listing of
Additional Units with respect to the Purchased Units and the Units underlying the Purchased Class B
Units. Linn’s currently outstanding Units are quoted on The Nasdaq Global Market and Linn has not
received any notice of delisting.

          (g) The Purchased Units shall have those rights, preferences, privileges and restrictions
governing the Units as set forth in the Limited Liability Company Agreement. A true and correct
copy of the Limited Liability Company Agreement, as amended through the date hereof (but excluding
the Class B Amendment), has been filed by Linn with the Commission on January 19, 2006 as Exhibit
3.1 to Linn’s Current Report on Form 8-K. The Purchased Class B Units shall have those rights,
preferences, privileges and restrictions governing the Class B Units, which shall be reflected in
the Limited Liability Company Agreement, as amended by the Class B Amendment.

     Section 3.03. Linn SEC Documents. Linn has filed with the Commission all forms,
registration statements, reports, schedules and statements required to be filed by it under the
Exchange Act or the Securities Act (all such documents filed on or prior to the date of this
Agreement, collectively, the “Linn SEC Documents”). The Linn SEC Documents, including any
audited or unaudited financial statements and any notes thereto or schedules included therein (the
“Linn Financial Statements”), at the time filed (in the case of registration statements,
solely on the dates of effectiveness) (except to the extent corrected by a subsequently filed Linn
SEC

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Document filed prior to the date of this Agreement) (i) did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading, (ii) complied in all material respects with the applicable requirements of the Exchange
Act and the Securities Act, as the case may be, (iii) complied as to form in all material respects
with applicable accounting requirements and with the published rules and regulations of the
Commission with respect thereto, (iv) were prepared in accordance with GAAP applied on a consistent
basis during the periods involved (except as may be indicated in the notes thereto or, in the case
of unaudited statements, as permitted by Form 10-Q of the Commission) and (v) fairly present
(subject in the case of unaudited statements to normal, recurring and year-end audit adjustments)
in all material respects the consolidated financial position and status of the business of Linn as
of the dates thereof and the consolidated results of its operations and cash flows for the periods
then ended. KPMG LLP is an independent registered public accounting firm with respect to Linn and
has not resigned or been dismissed as independent registered public accountants of Linn as a result
of or in connection with any disagreement with Linn on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedures.

     Section 3.04. No Material Adverse Change. Except as set forth in or contemplated by
the Linn SEC Documents, since December 31, 2005, Linn and its Subsidiaries have conducted their
business in the ordinary course, consistent with past practice, and there has been no (i) change
that has had or would reasonably be expected to have a Linn Material Adverse Effect, other than
those occurring as a result of general economic or financial conditions or other developments that
are not unique to Linn and its Subsidiaries but also affect other Persons who participate or are
engaged in the lines of business of which Linn and its Subsidiaries participate or are engaged,
(ii) acquisition or disposition of any material asset by Linn or any of its Subsidiaries or any
contract or arrangement therefor, otherwise than for fair value in the ordinary course of business,
(iii) material change in Linn’s accounting principles, practices or methods or (iv) incurrence of
material indebtedness.

     Section 3.05. Litigation. Except as set forth in the Linn SEC Documents, there is no
Action pending or, to the knowledge of Linn, contemplated or threatened against Linn or any of its
Subsidiaries or any of their respective officers, directors or Properties, which (individually or
in the aggregate) reasonably would be expected to have a Linn Material Adverse Effect, which
challenges the validity of this Agreement.

     Section 3.06. No Breach. The execution, delivery and performance by Linn of the Basic
Documents to which it is a party and all other agreements and instruments in connection with the
transactions contemplated by the Basic Documents, and compliance by Linn with the terms and
provisions hereof and thereof, do not and will not (a) violate any provision of any Law,
governmental permit, determination or award having applicability to Linn or any of its Subsidiaries
or any of their respective Properties, (b) conflict with or result in a violation of any provision
of the Certificate of Formation of Linn or the Limited Liability Company Agreement or any
organizational documents of any of Linn’s Subsidiaries, (c) require any consent, approval or notice
under or result in a violation or breach of or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination, cancellation or acceleration)
under (i) any note, bond, mortgage, license, or loan or credit agreement to which

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Linn or any of its Subsidiaries is a party or by which Linn or any of its Subsidiaries or any
of their respective Properties may be bound or (ii) any other agreement, instrument or obligation,
or (d) result in or require the creation or imposition of any Lien upon or with respect to any of
the Properties now owned or hereafter acquired by Linn or any of its Subsidiaries, except in the
cases of clauses (a), (c) and (d) where such violation, default, breach, termination, cancellation,
failure to receive consent or approval, or acceleration with respect to the foregoing provisions of
this Section 3.06 would not, individually or in the aggregate, reasonably be expected to have a
Linn Material Adverse Effect.

     Section 3.07. Authority. Linn has all necessary limited liability company power and
authority to execute, deliver and perform its obligations under the Basic Documents to which it is
a party and to consummate the transactions contemplated thereby; the execution, delivery and
performance by Linn of each of the Basic Documents to which it is a party, and the consummation of
the transactions contemplated thereby, have been duly authorized by all necessary action on its
part; and the Basic Documents constitute the legal, valid and binding obligations of Linn,
enforceable in accordance with their terms, except as such enforceability may be limited by
bankruptcy, insolvency, fraudulent transfer and similar Laws affecting creditors’ rights generally
or by general principles of equity. Except as contemplated by this Agreement, no approval by the
Unitholders is required as a result of Linn’s issuance and sale of the Purchased Class B Units or
the Purchased Units.

     Section 3.08. Approvals. Except as contemplated by this Agreement or as required by
the Commission in connection with Linn’s obligations under the Registration Rights Agreement, no
authorization, consent, approval, waiver, license, qualification or written exemption from, nor any
filing, declaration, qualification or registration with, any Governmental Authority or any other
Person is required in connection with the execution, delivery or performance by Linn of any of the
Basic Documents to which it is a party, except where the failure to receive such authorization,
consent, approval, waiver, license, qualification or written exemption or to make such filing,
declaration, qualification or registration would not, individually or in the aggregate, reasonably
be expected to have a Linn Material Adverse Effect.

     Section 3.09. MLP Status. Linn met for the taxable year ended December 31, 2005, and
Linn expects to meet for the taxable year ending December 31, 2006, the gross income requirements
of Section 7704(c)(2) of the Code, and accordingly Linn is not, and does not reasonably expect to
be, taxed as a corporation for U.S. federal income tax purposes or for applicable tax purposes.
Linn indicated in the Form K-1 for the year ended December 31, 2005, that its Unitholders may be
subject to state income taxes in the following jurisdictions: New York, Pennsylvania and West
Virginia.

     Section 3.10. Investment Company Status. Linn is not an “investment company” within
the meaning of the Investment Company Act of 1940, as amended.

     Section 3.11. Offering. Assuming the accuracy of the representations and warranties
of the Purchasers contained in this Agreement, the sale and issuance of the Purchased Class B Units
and the Purchased Units pursuant to this Agreement are exempt from the registration requirements of
the Securities Act, and neither Linn nor any authorized Representative acting on its behalf has
taken or will take any action hereafter that would cause the loss of such exemption.

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     Section 3.12. Certain Fees. No fees or commissions will be payable by Linn to
brokers, finders or investment bankers with respect to the sale of any of the Purchased Class B
Units or the Purchased Units or the consummation of the transactions contemplated by this
Agreement. The Purchasers shall not be liable for any such fees or commissions. Linn agrees that
it will indemnify and hold harmless each of the Purchasers from and against any and all claims,
demands or liabilities for broker’s, finder’s, placement or other similar fees or commissions
incurred by Linn or alleged to have been incurred by Linn in connection with the sale of Purchased
Class B Units or Purchased Units or the consummation of the transactions contemplated by this
Agreement.

     Section 3.13. No Side Agreements. Except for the confidentiality agreements entered
into by and between each of the Purchasers and Linn, there are no other agreements by, among or
between Linn or its Affiliates, on the one hand, and any of the Purchasers or their Affiliates, on
the other hand, with respect to the transactions contemplated hereby nor promises or inducements
for future transactions between or among any of such parties.

     Section 3.14. Class B Unit Vote. The affirmative vote of a majority of the total
votes cast by the holders of Units (with the exception of the Purchased Units, which are not
entitled to vote according to the rules of The Nasdaq Global Market) is the only approval required
to approve the conversion of Class B Units into Units. As of the date of this Agreement and based
on Linn’s records or third party records, the Persons listed on Schedule 3.14 to this
Agreement are the beneficial owners of the Units set forth opposite such Person’s name on
Schedule 3.14 to this Agreement.

     Section 3.15. Unitholder Voting Agreement. Linn has, contemporaneously with entering
into this Agreement, entered into the Unitholder Voting Agreement in the form attached hereto as
Exhibit D.

     Section 3.16. Internal Accounting Controls. Except as disclosed in the Linn SEC
Documents, Linn and its Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific
authorization and (iv) the recorded accountability for assets is compared with the existing assets
at reasonable intervals and appropriate action is taken with respect to any differences.

     Section 3.17. Preemptive Rights or Registration Rights. Except (i) as set forth in
the Limited Liability Company Agreement, (ii) as set forth in the other organizational documents of
Linn and its Subsidiaries, (iii) as provided in the Basic Documents or (iv) for existing awards
under Linn’s Long-Term Incentive Plan and Memorandum of Understanding Regarding Compensation
Arrangements, there are no preemptive rights or other rights to subscribe for or to purchase, nor
any restriction upon the voting or transfer of, any capital stock or limited liability company or
membership interests of Linn or any of its Subsidiaries, in each case pursuant to any other
agreement or instrument to which any of such Persons is a party or by which any one of them may be
bound. None of the execution of this Agreement, the issuance of the Purchased

11

 

Class B Units or the Purchased Units as contemplated by this Agreement or the conversion of
the Class B Units into Units gives rise to any rights for or relating to the registration of any
securities of Linn, other than pursuant to the Registration Rights Agreement.

     Section 3.18. Insurance. Linn and its Subsidiaries are insured against such losses
and risks and in such amounts as Linn believes in its sole discretion to be prudent for its
businesses. Linn does not have any reason to believe that it or any Subsidiary will not be able to
renew its existing insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business.

     Section 3.19. Acknowledgment Regarding Purchase of Purchased Units and Purchased Class B
Units. Linn acknowledges and agrees that (i) each of the Purchasers is participating in the
transactions contemplated by this Agreement and the other Basic Documents at Linn’s request and
Linn has concluded that such participation is in Linn’s best interest and is consistent with Linn’s
objectives and (ii) each of the Purchasers is acting solely in the capacity of an arm’s length
purchaser. Linn further acknowledges that no Purchaser is acting or has acted as an advisor, agent
or fiduciary of Linn (or in any similar capacity) with respect to this Agreement or the other Basic
Documents and any advice given by any Purchaser or any of its respective Representatives in
connection with this Agreement or the other Basic Documents is merely incidental to the Purchasers’
purchase of Purchased Units and Purchased Class B Units. Linn further represents to each Purchaser
that Linn’s decision to enter into this Agreement has been based solely on the independent
evaluation of the transactions contemplated hereby by Linn and its Representatives.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF EACH PURCHASER

     Each Purchaser, severally and not jointly, represents and warrants to Linn with respect to
itself as follows:

     Section 4.01. Valid Existence. Such Purchaser (i) is duly organized, validly existing
and in good standing under the Laws of its respective jurisdiction of organization and (ii) has all
requisite power, and has all material governmental licenses, authorizations, consents and
approvals, necessary to own its Properties and carry on its business as its business is now being
conducted, except where the failure to obtain such licenses, authorizations, consents and approvals
would not have and would not reasonably be expected to have a Purchaser Material Adverse Effect.

     Section 4.02. No Breach. The execution, delivery and performance by such Purchaser of
the Basic Documents to which it is a party and all other agreements and instruments in connection
with the transactions contemplated by the Basic Documents to which it is a party, and compliance by
such Purchaser with the terms and provisions hereof and thereof and the purchase of the Purchased
Class B Units and the Purchased Units by such Purchaser do not and will not (a) violate any
provision of any Law, governmental permit, determination or award having applicability to such
Purchaser or any of its Properties, (b) conflict with or result in a violation of any provision of
the organizational documents of such Purchaser or (c) require any consent (other than standard
internal consents), approval or notice under or result in a violation or breach

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of or constitute (with or without due notice or lapse of time or both) a default (or give rise
to any right of termination, cancellation or acceleration) under (i) any note, bond, mortgage,
license, or loan or credit agreement to which such Purchaser is a party or by which such Purchaser
or any of its Properties may be bound or (ii) any other such agreement, instrument or obligation,
except in the case of clauses (a) and (c) where such violation, default, breach, termination,
cancellation, failure to receive consent or approval, or acceleration with respect to the foregoing
provisions of this Section 4.02 would not, individually or in the aggregate, reasonably be expected
to have a Purchaser Material Adverse Effect.

     Section 4.03. Investment. The Purchased Class B Units and the Purchased Units are
being acquired for such Purchaser’s own account, or the accounts of clients for whom such Purchaser
exercises discretionary investment authority (all of whom such Purchaser represents and warrants
are “accredited investors” within the meaning of Rule 501 of Regulation D promulgated by the
Commission pursuant to the Securities Act), not as a nominee or agent, and with no present
intention of distributing the Purchased Class B Units or the Purchased Units or any part thereof,
and such Purchaser has no present intention of selling or granting any participation in or
otherwise distributing the same in any transaction in violation of the securities Laws of the
United States of America or any state, without prejudice, however, to such Purchaser’s right at all
times to sell or otherwise dispose of all or any part of the Purchased Class B Units or the
Purchased Units under a registration statement under the Securities Act and applicable state
securities Laws or under an exemption from such registration available thereunder (including, if
available, Rule 144 promulgated thereunder). If such Purchaser should in the future decide to
dispose of any of the Purchased Class B Units or the Purchased Units, such Purchaser understands
and agrees (a) that it may do so only (i) in compliance with the Securities Act and applicable
state securities Law, as then in effect, or pursuant to an exemption therefrom or (ii) in the
manner contemplated by any registration statement pursuant to which such securities are being
offered, and (b) that stop-transfer instructions to that effect will be in effect with respect to
such securities. Notwithstanding the foregoing, each Purchaser may at any time enter into one or
more total return swaps with respect to such Purchaser’s Purchased Class B Units or Purchased Units
with a third party provided that such transactions are exempt from registration under the
Securities Act. Notwithstanding the foregoing, with respect to Goldman, Sachs & Co., the
restrictions contained in this Section 4.03(a) shall only apply to the Goldman Sachs Principal
Strategies Group, as currently configured, and shall not restrict or limit the activities of any
area or division of Goldman, Sachs & Co. or any of its Affiliates, other than Goldman Sachs
Principal Strategies Group, as currently configured.

     Section 4.04. Nature of Purchaser. Such Purchaser represents and warrants to, and
covenants and agrees with, Linn that (a) it is an “accredited investor” within the meaning of Rule
501 of Regulation D promulgated by the Commission pursuant to the Securities Act and (b) by reason
of its business and financial experience it has such knowledge, sophistication and experience in
business and financial matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Purchased Class B Units and the Purchased Units, is able to bear the
economic risk of such investment and, at the present time, would be able to afford a complete loss
of such investment.

     Section 4.05. Receipt of Information; Authorization. Such Purchaser acknowledges that
it has (a) had access to the Linn SEC Documents, (b) had access to information publicly

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disclosed regarding the recent Blacksand Acquisition and Kaiser Acquisition and their
potential effect on Linn’s operations and financial results and (c) been provided a reasonable
opportunity to ask questions of and receive answers from Representatives of Linn regarding such
matters.

     Section 4.06. Restricted Securities. Such Purchaser understands that the Purchased
Class B Units and the Purchased Units it is purchasing are characterized as “restricted securities”
under the federal securities Laws inasmuch as they are being acquired from Linn in a transaction
not involving a public offering and that under such Laws and applicable regulations such securities
may be resold without registration under the Securities Act only in certain limited circumstances.
In this connection, Purchaser represents that it is knowledgeable with respect to Rule 144 of the
Commission promulgated under the Securities Act.

     Section 4.07. Certain Fees. No fees or commissions will be payable by such Purchaser
to brokers, finders or investment bankers with respect to the sale of any of the Purchased Class B
Units or the Purchased Units or the consummation of the transactions contemplated by this
Agreement. Linn will not be liable for any such fees or commissions. Such Purchaser agrees,
severally and not jointly with the other Purchasers, that it will indemnify and hold harmless Linn
from and against any and all claims, demands or liabilities for broker’s, finder’s, placement or
other similar fees or commissions incurred by such Purchaser or alleged to have been incurred by
such Purchaser in connection with the purchase of Purchased Class B Units or Purchased Units or the
consummation of the transactions contemplated by this Agreement.

     Section 4.08. Legend. It is understood that the certificates evidencing the Purchased
Class B Units and the Purchased Units and the certificates evidencing the Units issuable upon
conversion of the Purchased Class B Units initially will bear the following legend: “These
securities have not been registered under the Securities Act of 1933, as amended. These securities
may not be sold, offered for sale, pledged or hypothecated in the absence of a registration
statement in effect with respect to the securities under such Act or pursuant to an exemption from
registration thereunder and, in the case of a transaction exempt from registration, unless sold
pursuant to Rule 144 under such Act or the issuer has received documentation reasonably
satisfactory to it that such transaction does not require registration under such Act.”

     Section 4.09. No Side Agreements. Except for the confidentiality agreements entered
into by and between such Purchaser and Linn, there are no other agreements by, among or between
Linn or its Affiliates, on the one hand, and such Purchaser or its Affiliates, on the other hand,
with respect to the transactions contemplated hereby nor promises or inducements for future
transactions between or among any of such parties. Notwithstanding the foregoing, with respect to
Goldman, Sachs & Co., the representation made in this Section 4.09 is made only by the Goldman
Sachs Principal Strategies Group, as currently configured, and does not apply to Goldman, Sachs &
Co. or any of its Affiliates, other than Goldman Sachs Principal Strategies Group, as currently
configured. Notwithstanding the foregoing, with respect to Lehman Brothers Inc., the
representation made in this Section 4.09 is made only by Lehman Brothers MLP Partners, L.P., as
currently configured, and does not apply to Lehman Brothers Inc. or any of its Affiliates, other
than Lehman Brothers MLP Partners, L.P., as currently configured.

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ARTICLE V

COVENANTS

     Section 5.01. Shareholder Vote With Respect to Conversion.

          (a) Linn shall, in accordance with applicable Law and the Limited Liability Company Agreement,
take all action necessary to convene a meeting of its Unitholders to consider and vote upon the
conversion of the Class B Units into Units as soon as practicable, but in any event not later than
90 days from the Closing Date. Subject to fiduciary duties under applicable Law, the Board of
Directors shall, in connection with such meeting, recommend approval of the conversion of the Class
B Units into Units and shall take all other lawful action to solicit the approval of the conversion
of the Class B Units into Units by the Unitholders, except that Linn may, but shall not be required
to, hire any proxy solicitation firm in connection with such meeting.

          (b) If the conversion of the Class B Units into Units is not approved by the Unitholders at
the meeting contemplated by Section 5.01(a), upon written notice from the Purchasers holding a
majority of the Class B Units, Linn shall be obligated to convene another meeting of its
Unitholders on the terms set forth in Section 5.01(a) (except that such meeting shall take place no
later than 90 days after the meeting contemplated by Section 5.01(a)), and the Board of Directors
shall again be obligated to take the actions set forth in Section 5.01(a) with respect to such
meeting. If the approval of Linn’s Unitholders is not obtained at this second meeting of
Unitholders, then Linn shall be obligated to include the conversion of Class B Units into Units as
a proposal to be voted upon at no more than two subsequent meetings of its Unitholders within 90
days after the preceding meeting, and its Board of Directors shall remain obligated to take the
actions set forth in Section 5.01(a) with respect to each such meeting.

     Section 5.02. Subsequent Public Offerings. Without the written consent of the holders
of a majority of the Purchased Class B Units and the Purchased Units, taken as a whole, from the
date of this Agreement until the Lock-Up Date, Linn shall not, and shall cause its directors,
officers and Affiliates not to, grant, issue or sell any Units or Class B Units or other equity or
voting securities of Linn, any securities convertible into or exchangeable therefor or take any
other action that may result in the issuance of any of the foregoing, other than (i) the issuance
of the Purchased Class B Units and the Purchased Units, (ii) the issuance of Awards (as defined in
Linn’s Long-Term Incentive Plan) or the issuance of Units upon the exercise of options to purchase
Units granted pursuant to Linn’s existing (a) Long-Term Incentive Plan or (b) Memorandum of
Understanding Regarding Compensation Arrangements for Members of its Board of Directors, (iii) the
issuance or sale of up to an aggregate of 15 million Units issued or sold in a registered public
offering to finance future acquisitions that are accretive to cash flow per Unit (or the repayment
of indebtedness incurred in connection with such accretive acquisitions) at a price no less than
110% of the Unit Price or Class B Unit Price, as the case may be, or in a private offering to
finance future acquisitions that are accretive to cash flow per Unit (or the repayment of
indebtedness incurred in connection with such accretive acquisitions) at a price no less than 105%
of the Unit Price or Class B Unit Price, as the case may be, and (iv) the issuance of up to 5
million Units as purchase price consideration in connection with future acquisitions that are
accretive to cash flow per Unit. Notwithstanding the foregoing, Linn shall not, and shall cause
its directors, officers and Affiliates not to, sell, offer for sale or solicit offers

15

 

to buy any security (as defined in the Securities Act) that would be integrated with the sale
of the Purchased Class B Units or the Purchased Units in a manner that would require the
registration under the Securities Act of the sale of the Purchased Class B Units or the Purchased
Units to the Purchasers.

     Section 5.03. Vote For Conversion of Class B Units. At any meeting (including
adjournments or postponements thereof) of Linn’s Unitholders held to consider approval of the
conversion of the Class B Units into Units (including the special meeting of Unitholders
contemplated by Section 5.01), each of the Purchasers agrees to vote all of its Units, with the
exception of the Purchased Units, which are not entitled to vote according to the rules of The
Nasdaq Global Market, in favor of the conversion of the Class B Units into Units. Notwithstanding
the foregoing, with respect to Goldman, Sachs & Co., the restrictions contained in this Section
5.03 shall only apply to the Goldman Sachs Principal Strategies Group, as currently configured, and
shall not restrict or limit the activities of any area or division of Goldman, Sachs & Co. or any
of its Affiliates, other than Goldman Sachs Principal Strategies Group, as currently configured.

     Section 5.04. Purchaser Lock-Up. Without the prior written consent of Linn, each
Purchaser agrees that from and after the Closing it will not sell any of its Purchased Class B
Units or Purchased Units prior to the Lock-Up Date; provided, however, that each Purchaser may: (i)
enter into one or more total return swaps or similar transactions at any time with respect to the
Purchased Class B Units or the Purchased Units purchased by such Purchaser; or (ii) transfer its
Purchased Class B Units or Purchased Units to an Affiliate of such Purchaser or to any other
Purchaser or an Affiliate of such other Purchaser provided that such Affiliate agrees to the
restrictions in this Section 5.04. Notwithstanding the foregoing, with respect to Goldman, Sachs &
Co., the restrictions contained in this Section 5.04 shall only apply to the Goldman Sachs
Principal Strategies Group, as currently configured, and shall not restrict or limit the activities
of any area or division of Goldman, Sachs & Co. or any of its Affiliates, other than Goldman Sachs
Principal Strategies Group, as currently configured.

     Section 5.05. Taking of Necessary Action. Each of the Parties hereto shall use its
commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do
or cause to be done all things necessary, proper or advisable under applicable Law and regulations
to consummate and make effective the transactions contemplated by this Agreement. Without limiting
the foregoing, Linn and each Purchaser will, and Linn shall cause each of its Subsidiaries to, use
its commercially reasonable efforts to make all filings and obtain all consents of Governmental
Authorities that may be necessary or, in the reasonable opinion of the Purchasers or Linn, as the
case may be, advisable for the consummation of the transactions contemplated by this Agreement and
the other Basic Documents.

     Section 5.06. Non-Disclosure; Interim Public Filings. Linn shall, on or before 8:30
a.m., New York time, on the first Business Day following execution of this Agreement, issue a press
release acceptable to the Purchasers disclosing all material terms of the transactions contemplated
hereby, but excluding the material terms of the Basic Documents. Before 8:30 a.m., New York Time,
on the first Business Day following the Closing Date, Linn shall file a Current Report on Form 8-K
with the Commission (the “8-K Filing”) describing the terms of the transactions
contemplated by this Agreement and the other Basic Documents and including as

16

 

exhibits to such Current Report on Form 8-K this Agreement and the other Basic Documents, in
the form required by the Exchange Act. Thereafter, Linn shall timely file any filings and notices
required by the Commission or applicable Law with respect to the transactions contemplated hereby
and provide copies thereof to the Purchasers promptly after filing. Except with respect to the 8-K
Filing and the press release referenced above (a copy of which will be provided to the Purchasers
for their review as early as practicable prior to its filing), Linn shall, at least two Business
Days prior to the filing or dissemination of any disclosure required by this Section 5.06, provide
a copy thereof to the Purchasers for their review. Linn and the Purchasers shall consult with each
other in issuing any press releases or otherwise making public statements or filings and other
communications with the Commission or any regulatory agency or The Nasdaq Global Market (or other
exchange on which securities of Linn are listed or traded) with respect to the transactions
contemplated hereby, and neither Party shall issue any such press release or otherwise make any
such public statement, filing or other communication without the prior consent of the other, except
if such disclosure is required by Law, in which case the disclosing Party shall promptly provide
the other Party with prior notice of such public statement, filing or other communication.
Notwithstanding the foregoing, Linn shall not publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any press release, without the prior written consent of such
Purchaser except to the extent the names of the Purchasers are included in this Agreement as filed
as an exhibit to the 8-K Filing and the press release referred to in the first sentence above.
Linn shall not, and shall cause each of its respective Representatives not to, provide any
Purchaser with any material non-public information regarding Linn from and after the issuance of
the above-referenced press release without the express written consent of such Purchaser.

     Section 5.07. Use of Proceeds. Linn shall use the collective proceeds from the sale
of the Purchased Class B Units and the Purchased Units to repay Linn’s existing bridge loan, with
any remaining proceeds used to reduce indebtedness outstanding under Linn’s revolving credit
facility.

     Section 5.08. Class B Amendment. Linn shall cause the Class B Amendment to be adopted
immediately prior to the issuance and sale of the Class B Units contemplated by this Agreement.

     Section 5.09. Tax Information. Linn shall cooperate with the Purchasers and provide
the Purchasers with any reasonably requested tax information related to their ownership of the
Purchased Units and the Purchased Class B Units.

ARTICLE VI

CLOSING DELIVERIES

     Section 6.01. Linn Deliveries. At the Closing, subject to the terms and conditions of
this Agreement, Linn shall have delivered, or caused to be delivered, to each Purchaser:

          (a) the Purchased Class B Units and the Purchased Units by delivering certificates (bearing
the legend set forth in Section 4.08) evidencing such Purchased Class B Units and such Purchased
Units at the Closing, all free and clear of any Liens, encumbrances or interests of any other
party;

17

 

          (b) opinions addressed to the Purchasers from outside legal counsel to Linn and from the
General Counsel of Linn, each dated the Closing Date, substantially similar in substance to the
form of opinions attached to this Agreement as Exhibit B;

          (c) the Registration Rights Agreement in substantially the form attached to this Agreement as
Exhibit C, which shall have been duly executed by Linn;

          (d) a certificate of the Secretary of each of Linn, Linn Energy Holdings, LLC, Linn Energy
Western Holdings, LLC and Linn Energy Mid-Continent Holdings, LLC, each dated as of the Closing
Date, as to certain matters;

          (e) a certificate dated as of a recent date of the Secretary of State of the State of Delaware
with respect to the due organization and good standing in the State of Delaware of Linn;

          (f) the Unitholder Voting Agreement, which shall have been duly executed by the intended
parties thereto; and

          (g) a receipt, dated the Closing Date, executed by Linn and delivered to each Purchaser
certifying that Linn has received the Purchase Price with respect to the Purchased Class B Units
and the Purchased Units issued and sold to each such Purchaser.

     Section 6.02. Purchaser Deliveries. At the Closing, subject to the terms and
conditions of this Agreement and Section 6.02(b), each Purchaser shall have delivered, or caused to
be delivered, to Linn:

          (a) payment to Linn of such Purchaser’s Commitment Amount by wire transfer(s) of immediately
available funds to Comerica Bank, Dallas, Texas, ABA Routing Number: 111 000 753, Linn Energy
Account Number: 100431881049249;

          (b) a receipt, dated the Closing Date, executed and delivered (within five Business Days after
the receipt hereinafter referenced) by each Purchaser to Linn certifying that each such Purchaser
has received the Purchased Class B Units and the Purchased Units set forth opposite such
Purchaser’s name on Schedule 2.01; and

          (c) the Registration Rights Agreement in substantially the form attached to this Agreement as
Exhibit C, which shall have been duly executed by each Purchaser.

ARTICLE VII

INDEMNIFICATION, COSTS AND EXPENSES

     Section 7.01. Indemnification by Linn. Linn agrees to indemnify each Purchaser and
its Representatives (collectively, “Purchaser Related Parties”) from, and hold each of them
harmless against, any and all actions, suits, proceedings (including any investigations, litigation
or inquiries), demands and causes of action, and, in connection therewith, and promptly upon
demand, pay and reimburse each of them for all costs, losses, liabilities, damages or expenses of
any kind or nature whatsoever, including the reasonable fees and disbursements of counsel and all
other reasonable expenses incurred in connection with investigating, defending or preparing

18

 

to defend any such matter that may be incurred by them or asserted against or involve any of
them as a result of, arising out of or in any way related to (i) any actual or proposed use by Linn
of the proceeds of any sale of the Purchased Class B Units or the Purchased Units or (ii) the
breach of any of the representations, warranties or covenants of Linn contained herein; provided
that such claim for indemnification relating to a breach of a representation or warranty is made
prior to the expiration of such representation or warranty.

     Section 7.02. Indemnification by Purchasers. Each Purchaser agrees, severally and not
jointly, to indemnify Linn and its Representatives (collectively, “Linn Related Parties”)
from, and hold each of them harmless against, any and all actions, suits, proceedings (including
any investigations, litigation or inquiries), demands and causes of action, and, in connection
therewith, and promptly upon demand, pay and reimburse each of them for all costs, losses,
liabilities, damages or expenses of any kind or nature whatsoever, including the reasonable fees
and disbursements of counsel and all other reasonable expenses incurred in connection with
investigating, defending or preparing to defend any such matter that may be incurred by them or
asserted against or involve any of them as a result of, arising out of or in any way related to the
breach of any of the covenants of such Purchaser contained herein.

     Section 7.03. Indemnification Procedure. Promptly after any Linn Related Party or
Purchaser Related Party (hereinafter, the “Indemnified Party”) has received notice of any
indemnifiable claim hereunder, or the commencement of any action or proceeding by a third party,
which the Indemnified Party believes in good faith is an indemnifiable claim under this Agreement,
the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”)
written notice of such claim or the commencement of such action or proceeding, but failure to so
notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may
have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is
materially prejudiced by such failure. Such notice shall state the nature and the basis of such
claim to the extent then known. The Indemnifying Party shall have the right to defend and settle,
at its own expense and by its own counsel who shall be reasonably acceptable to the Indemnified
Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good
faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the
Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the
Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof
and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with
any books, records and other information reasonably requested by the Indemnifying Party and in the
Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at
the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified
Party of its intention to undertake to defend or settle any such asserted liability, and for so
long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be
liable for any additional legal expenses incurred by the Indemnified Party in connection with any
defense or settlement of such asserted liability; provided, however, that the Indemnified Party
shall be entitled (i) at its expense, to participate in the defense of such asserted liability and
the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has failed to
assume the defense or employ counsel reasonably acceptable to the Indemnified Party or (B) if the
defendants in any such action include both the Indemnified Party and the Indemnifying Party and
counsel to the Indemnified Party shall have concluded that there may be reasonable defenses
available to the Indemnified

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Party that are different from or in addition to those available to the Indemnifying Party or
if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests
of the Indemnifying Party, then the Indemnified Party shall have the right to select a separate
counsel and to assume such legal defense and otherwise to participate in the defense of such
action, with the expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other
provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without
the consent of the Indemnified Party, unless the settlement thereof imposes no liability or
obligation on, involves no admission of wrongdoing or malfeasance by, and includes a complete
release from liability of, the Indemnified Party.

ARTICLE VIII

MISCELLANEOUS

     Section 8.01. Interpretation. Article, Section, Schedule and Exhibit references are
to this Agreement, unless otherwise specified. All references to instruments, documents, contracts
and agreements are references to such instruments, documents, contracts and agreements as the same
may be amended, supplemented and otherwise modified from time to time, unless otherwise specified.
The word “including” shall mean “including but not limited to”. Whenever Linn has an obligation
under the Basic Documents, the expense of complying with such obligation shall be an expense of
Linn unless otherwise specified. Whenever any determination, consent or approval is to be made or
given by a Purchaser under this Agreement, such action shall be in such Purchaser’s sole discretion
unless otherwise specified. If any provision in the Basic Documents is held to be illegal,
invalid, not binding or unenforceable, such provision shall be fully severable and the Basic
Documents shall be construed and enforced as if such illegal, invalid, not binding or unenforceable
provision had never comprised a part of the Basic Documents, and the remaining provisions shall
remain in full force and effect. The Basic Documents have been reviewed and negotiated by
sophisticated parties with access to legal counsel and shall not be construed against the drafter.

     Section 8.02. Survival of Provisions. The representations and warranties set forth in
this Agreement shall survive the execution and delivery of this Agreement indefinitely. The
covenants made in this Agreement or any other Basic Document shall survive the closing of the
transactions described herein and remain operative and in full force and effect regardless of
acceptance of any of the Purchased Class B Units or the Purchased Units and payment therefor and
repayment, conversion, exercise or repurchase thereof. All indemnification obligations of Linn and
the Purchasers pursuant to Section 3.12, Section 4.07 and Article VII of this Agreement shall
remain operative and in full force and effect unless such obligations are expressly terminated in a
writing by the Parties referencing the particular Article or Section, regardless of any purported
general termination of this Agreement.

     Section 8.03. No Waiver; Modifications in Writing.

          (a) Delay. No failure or delay on the part of any Party in exercising any right,
power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further exercise thereof or the

20

 

exercise of any right, power or remedy. The remedies provided for herein are cumulative and
are not exclusive of any remedies that may be available to a Party at law or in equity or
otherwise.

          (b) Specific Waiver. Except as otherwise provided in this Agreement or the
Registration Rights Agreement, no amendment, waiver, consent, modification or termination of any
provision of this Agreement or any other Basic Document shall be effective unless signed by each of
the Parties or each of the original signatories thereto affected by such amendment, waiver,
consent, modification or termination. Any amendment, supplement or modification of or to any
provision of this Agreement or any other Basic Document, any waiver of any provision of this
Agreement or any other Basic Document and any consent to any departure by Linn from the terms of
any provision of this Agreement or any other Basic Document shall be effective only in the specific
instance and for the specific purpose for which made or given. Except where notice is specifically
required by this Agreement, no notice to or demand on any Party in any case shall entitle any Party
to any other or further notice or demand in similar or other circumstances.

     Section 8.04. Binding Effect; Assignment.

          (a) Binding Effect. This Agreement shall be binding upon Linn, each Purchaser, and
their respective successors and permitted assigns. Except as expressly provided in this Agreement,
this Agreement shall not be construed so as to confer any right or benefit upon any Person other
than the Parties to this Agreement and as provided in Article VII, and their respective successors
and permitted assigns.

          (b) Assignment of Purchased Class B Units and Purchased Units. All or any portion of
a Purchaser’s Purchased Class B Units or Purchased Units purchased pursuant to this Agreement may
be sold, assigned or pledged by such Purchaser, subject to compliance with applicable securities
Laws, Section 5.04 of this Agreement, and the Registration Rights Agreement.

          (c) Assignment of Rights. Each Purchaser may assign all or any portion of its rights
and obligations under this Agreement without the consent of Linn (i) to any Affiliate of such
Purchaser or (ii) in connection with a total return swap or similar transaction with respect to the
Purchased Class B Units or the Purchased Units purchased by such Purchaser, and in each case the
assignee shall be deemed to be a Purchaser hereunder with respect to such assigned rights or
obligations and shall agree to be bound by the provisions of this Agreement. Except as expressly
permitted by this Section 8.04(c), such rights and obligations may not otherwise be transferred
except with the prior written consent of Linn (which consent shall not be unreasonably withheld),
in which case the assignee shall be deemed to be a Purchaser hereunder with respect to such
assigned rights or obligations and shall agree to be bound by the provisions of this Agreement.

     Section 8.05. Aggregation of Purchased Class B Units and Purchased Units. All
Purchased Class B Units and Purchased Units held or acquired by Persons who are Affiliates of one
another shall be aggregated together for the purpose of determining the availability of any rights
under this Agreement.

21

 

     Section 8.06. Confidentiality and Non-Disclosure. Notwithstanding anything herein to
the contrary, each Purchaser that has executed a confidentiality agreement in favor of Linn shall
continue to be bound by such confidentiality agreement in accordance with the terms thereof until
Linn discloses on Form 8-K with the Commission the transactions contemplated hereby.

     Section 8.07. Communications. All notices and demands provided for hereunder shall be
in writing and shall be given by regular mail, registered or certified mail, return receipt
requested, facsimile, air courier guaranteeing overnight delivery, electronic mail or personal
delivery to the following addresses:

          (a) If to Goldman, Sachs & Co.:

Goldman Sachs Principal Strategies Group

c/o Goldman, Sachs & Co.

1 New York Plaza, 47th floor

New York, NY 10004

Attention: Gaurav Bhandari or Sabrina Liak

Facsimile: (212) 256-4756 or (212) 256-4869

with a copy to:

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

Attention: Steven J. Steinman, Esq.

Facsimile: (212) 859-4000

          (b) If to ZLP Fund, L.P.:

Harborside Financial Center

Plaza 10, Suite 301

Jersey City, New Jersey 07311

Attention: Daniel M. Lynch

Facsimile: (201) 716-1425

with a copy to:

Pillsbury Winthrop Shaw Pittman LLP

1540 Broadway

New York, NY 10036-4039

Attention: David P. Falck, Esq.

Facsimile: 212-858-1500

          (c) If to [Purchaser]:

[                                        ]

[                                        ]

[                                        ]

Attention: [                                        ]

Facsimile: [                                        ]

          (d) If to Linn:

Linn Energy, LLC

600 Travis, Suite 6910

Houston, Texas 77002

22

 

Attention: Kolja Rockov

Facsimile: (713) 223-0880

with a copy to:

Vinson & Elkins L.L.P.

2300 First City Tower

1001 Fannin Street, Suite 2300

Houston, Texas 77002

Attention: Thomas P. Mason, Esq.

Facsimile: (713) 615-5320

or to such other address as Linn or such Purchaser may designate in writing. All notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; upon actual receipt if sent by registered or certified mail, return receipt
requested, or regular mail, if mailed; when receipt acknowledged, if sent via facsimile; and upon
actual receipt when delivered to an air courier guaranteeing overnight delivery or via electronic
mail.

     Section 8.08. Removal of Legend. Linn shall remove the legend described in Section
4.08 from the certificates evidencing the Purchased Class B Units or the Purchased Units and the
certificates evidencing the Units issuable upon the conversion of the Purchased Class B Units at
the request of a Purchaser submitting to Linn such certificates, together with such other
documentation as may be reasonably requested by Linn or required by its transfer agent, unless
Linn, with the advice of counsel, reasonably determines that such removal is inappropriate;
provided that no opinion of counsel shall be required in the event a Purchaser is effecting a sale
of such Purchased Class B Units or Purchased Units pursuant to Rule 144 under the Securities Act or
an effective registration statement. Linn shall cooperate with such Purchaser to effect removal of
such legend. Subject to 4.6(c) and Section 5.10(f) of the Limited Liability Company Agreement,
the legend described in Section 4.08 shall be removed and Linn shall issue a certificate without
such legend to the holder of Purchased Class B Units or Purchased Units upon which it is stamped,
if, unless otherwise required by state securities Laws, (i) such Purchased Class B Units or
Purchased Units are sold pursuant to an effective Registration Statement, (ii) in connection with a
sale, assignment or other transfer, such holder provides Linn with an opinion of a law firm
reasonably acceptable to Linn (with any law firm set forth under Section 8.07 being deemed
acceptable), in a generally acceptable form, to the effect that such sale, assignment or transfer
of such Purchased Class B Units or Purchased Units may be made without registration under the
applicable requirements of the Securities Act, or (iii) such holder provides Linn with reasonable
assurance that such Purchased Class B Units or Purchased Units can be sold, assigned or transferred
pursuant to Rule 144 or Rule 144A under the Securities Act. If Linn shall fail for any reason or
for no reason to issue to the holder of such Purchased Class B Units or Purchased Units within
three trading days after the occurrence of any of clause (i), clause (ii) or clause (iii) above a
certificate without such legend to the holder or if Linn fails to deliver unlegended Purchased
Class B Units or Purchased Units within three trading days of the Purchaser’s election to receive
such unlegended Purchased Class B Units or Purchased Units pursuant to clause (y) below, and if on
or after such trading day the holder purchases (in an open market transaction or otherwise) Class B
Units or Units to deliver in satisfaction of a sale by the holder of such

23

 

Purchased Class B Units or Purchased Units that the holder anticipated receiving without
legend from Linn (a “Buy-In”), then Linn shall, within three Business Days after the
holder’s request and in the holder’s discretion, either (x) pay cash to the holder in an amount
equal to the holder’s total purchase price (including brokerage commissions, if any) for the Class
B Units or Units so purchased (the “Buy-In Price”), at which point Linn’s obligation to
deliver such unlegended Purchased Class B Units or Purchased Units shall terminate, or (y) promptly
honor its obligation to deliver to the holder such unlegended Purchased Class B Units or Purchased
Units as provided above and pay cash to the holder in an amount equal to the excess (if any) of the
Buy-In Price over the product of (A) such number of Class B Units or Units times (B) the closing
bid price on the date of exercise.

     Section 8.09. Entire Agreement. This Agreement and the other Basic Documents are
intended by the Parties as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the Parties hereto and thereto in respect
of the subject matter contained herein and therein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein or therein with
respect to the rights granted by Linn or a Purchaser set forth herein or therein. This Agreement
and the other Basic Documents supersede all prior agreements and understandings between the Parties
with respect to such subject matter.

     Section 8.10. Governing Law. This Agreement will be construed in accordance with and
governed by the Laws of the State of Delaware without regard to principles of conflicts of Laws.

     Section 8.11. Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by different Parties hereto in separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original and all of which
counterparts, taken together, shall constitute but one and the same Agreement.

     Section 8.12. Expenses. Linn hereby covenants and agrees to reimburse Pillsbury
Winthrop Shaw Pittman LLP for reasonable and documented costs and expenses (including legal fees)
incurred in connection with the negotiation, execution, delivery and performance of the Basic
Documents and the transactions contemplated hereby and thereby, provided that such costs and
expenses do not exceed $75,000 and that any request for such expense reimbursement be accompanied
by a detailed invoice for such amount. If any action at law or equity is necessary to enforce or
interpret the terms of the Basic Documents, the prevailing Party shall be entitled to reasonable
attorney’s fees, costs and necessary disbursements in addition to any other relief to which such
Party may be entitled.

     Section 8.13. Recapitalization, Exchanges, Etc. Affecting the Purchased Class B Units and
the Purchased Units. The provisions of this Agreement shall apply to the full extent set forth
herein with respect to any and all units of Linn or any successor or assign of Linn (whether by
merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange
for or in substitution of, the Purchased Class B Units or the Purchased Units, and shall

24

 

be appropriately adjusted for combinations, unit splits, recapitalizations and the like
occurring after the date of this Agreement.

     Section 8.14. Obligations Limited to Parties to Agreement. Each of the parties hereto
covenants, agrees and acknowledges that no Person other than the Purchasers (and their permitted
assignees) and Linn shall have any obligation hereunder and that, notwithstanding that one or more
of the Purchasers may be a corporation, partnership or limited liability company, no recourse under
this Agreement or the other Basic Documents or under any documents or instruments delivered in
connection herewith or therewith shall be had against any former, current or future director,
officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of
any of the Purchasers or Linn or any former, current or future director, officer, employee, agent,
general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing,
whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue
of any applicable Law, it being expressly agreed and acknowledged that no personal liability
whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current or future
director, officer, employee, agent, general or limited partner, manager, member, stockholder or
Affiliate of any of the Purchasers or Linn or any former, current or future director, officer,
employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of
the foregoing, as such, for any obligations of the Purchasers and Linn under this Agreement or the
other Basic Documents or any documents or instruments delivered in connection herewith or therewith
or for any claim based on, in respect of or by reason of such obligation or its creation.

[The remainder of this page is intentionally left blank.]

25

 

     IN WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as of the date first
above written.

	 	 	 	 	 
	 	LINN ENERGY, LLC

 	 
	 	By:  	/s/ Kolja Rockov	 
	 	 	Kolja Rockov 	 
	 	 	Executive Vice President and	 
	 	 	Chief Financial Officer	 
	 

 

	 	 	 	 	 	 	 
	 	 	BEN VAN DE BUNT AND LAURA FOX LIVING
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ben Van de Bunt	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Ben Van de Bunt	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 
	 

	 	 	 	 	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ZLP FUND, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Lucas	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Lucas	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Member/General Partner	 	 
	 

	 	 	 	 	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE MANAGEMENT L.L.C.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert (illegible)	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Robert (illegible)	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 

	 	 	 	 	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 	 	 
	 	 	STRUCTURED FINANCE AMERICAS, L.L.C.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jill H. Rathjen	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Jill H. Rathjen	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	V.P.	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrea Leuna	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Andrea Leuna	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 
	 

	 	 	 	 	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA

by its agent

RBC CAPITAL MARKETS CORPORATION

 	 
	 	By:  	/s/ Steven Milke
 	 
	 
	 	Name:  	Steven Milke 	 
	 
	 	Title:  	Managing Director 	 
	 
	 
	 	 	 
	 	By:  	/s/ Josef Muskatel
 	 
	 
	 	Name:  	Josef Muskatel 	 
	 
	 	Title:  	Director and Senior Counsel 	 
	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	LEHMAN BROTHERS MLP PARTNERS, L.P.

 	 
	 	By:  	/s/ Michael J. Cannon
 	 
	 
	 	Name:  	Michael J. Cannon 	 
	 
	 	Title:  	Managing Director 	 
	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	B Y PARTNERS, L.P.

 	 
	 	By:  	/s/ Peter A. Hochfelder
 	 
	 
	 	Name:  	Peter A. Hochfelder 	 
	 
	 	Title:  	President of Brahman Management, L.L.C. 	 
	 
	 
	 	BRAHMAN PARTNERS II, L.P.

 	 
	 	By:  	/s/ Peter A. Hochfelder
 	 
	 
	 	Name:  	Peter A. Hochfelder 	 
	 
	 	Title:  	President of Brahman Management, L.L.C. 	 
	 
	 
	 	BRAHMAN PARTNERS III, L.P.

 	 
	 	By:  	/s/ Peter A. Hochfelder
 	 
	 
	 	Name:  	Peter A. Hochfelder 	 
	 
	 	Title:  	President of Brahman Management, L.L.C. 	 
	 
	 
	 	BRAHMAN PARTNERS IV, L.P.

 	 
	 	By:  	/s/ Peter A. Hochfelder
 	 
	 
	 	Name:  	Peter A. Hochfelder 	 
	 
	 	Title:  	President of Brahman Management, L.L.C. 	 
	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	BRAHMAN C.P.F. PARTNERS, L.P.

 	 
	 	By:  	/s/ Peter A. Hochfelder
 	 
	 
	 	Name:  	Peter A. Hochfelder 	 
	 
	 	Title:  	President of Brahman Management, L.L.C. 	 
	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	GPS INCOME FUND LP

 	 
	 	By:  	/s/ Brett Messing
 	 
	 
	 	Name:  	Brett Messing 	 
	 
	 	Title:  	Managing Partner 	 
	 	 	GPS Partners LLC

General Partner of the

GPS Income Fund LP 	 
	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	GPS HIGH YIELD EQUITIES FUND LP

 	 
	 	By:  	/s/ Brett S. Messing
 	 
	 
	 	Name:  	Brett S. Messing 	 
	 
	 	Title:  	Managing Partner 	 
	 	 	GPS Partners LLC

General Partner of the

GPS High Yield Equities Fund LP 	 
	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	 	GPS INCOME FUND (CAYMAN) LTD
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brett Messing
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Brett Messing
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Partner
	 

	 	 	 	 
	 	 	 	 	GPS Partners LLC

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	 	HFR RVA GPS MASTER TRUST
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brett S. Messing
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Brett S. Messing
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Partner
	 

	 	 	 	 
	 

	 	 	 	GPS Partners LLC
Investment
Manager of the
HFR RVA GPS Master Trust

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	 	KNEE FAMILY TRUST DTD
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kevin R. Knee
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Kevin R. Knee
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Trustee
	 

	 	 	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	 	GOLDMAN, SACHS & CO., on behalf of
	 	 	its Principal Strategies Group
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gaurav Bhandari
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gaurav Bhandari
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Director
	 

	 	 	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	 	Magnetar Capital Fund, LP
	 

	 	By:
	 	Magnetar Financial LLC, its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Paul Smith
	 

	 	 	 	 
	 

	 	Name:
	 	Paul Smith
	 

	 	Title:
	 	General Counsel

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	 	ALERIAN FOCUS PARTNERS LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gabriel Hammond
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gabriel Hammond
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Member — General Partner
	 
	 	 	 	 
	 	 	ALERIAN OPPORTUNITY PARTNERS III LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gabriel Hammond
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gabriel Hammond
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Member — General Partner
	 
	 	 	 	 
	 	 	ALERIAN CAPTIAL PARTNERS LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gabriel Hammond
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gabriel Hammond
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Member — General Partner

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 
	RCH ENERGY MLP FUND, LP
	 
	 	 
	By:

	 	RCH Energy MLP Fund, GP, LP
	 

	 	     its general partner
	By:

	 	RR Advisors, LLC, its general partner
	 
	 	 
	By:

	 	/s/ Robert Raymond
	 

	 	 
	 

	 	     Robert Raymond, its sole member

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 
	STROME MLP FUND, LP
	 
	 	 
	By:

	 	/s/ Michael Achterberg
	 

	 	 
	 
	 	 
	Name:

	 	Michael Achterberg
	 

	 	 
	 
	 	 
	Title:

	 	Chief Financial Officer
	 

	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 
	LOCUST WOOD CAPITAL, LP
	 
	 	 
	By:

	 	/s/ Stephen J. Enrico
	 

	 	 
	 
	 	 
	Name:

	 	Stephen J. Enrico
	 

	 	 
	 
	 	 
	Title:

	 	Managing Member
	 

	 	 

Signature Page to

Class B Unit and Unit Purchase Agreement

 

 

	 	 	 
	Stockbridge 1, LLC
	 
	 	 
	By:

	 	/s/ Stockbridge 1, LLC
	 

	 	 
	 
	 	 

Signature Page to

Class B Unit and Unit Purchase AgreementEX-10.2

 

Exhibit 10.2

Execution Copy

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

LINN ENERGY, LLC

AND

THE PURCHASERS NAMED HEREIN

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	 

	 	Section 1.01
	 	Definitions
	 	 	1	 
	 

	 	Section 1.02
	 	Registrable Securities
	 	 	3	 
	ARTICLE II REGISTRATION RIGHTS	 	 	3	 
	 

	 	Section 2.01
	 	Registration
	 	 	3	 
	 

	 	Section 2.02
	 	Piggyback Rights
	 	 	5	 
	 

	 	Section 2.03
	 	Underwritten Offering
	 	 	7	 
	 

	 	Section 2.04
	 	Sale Procedures
	 	 	8	 
	 

	 	Section 2.05
	 	Cooperation by Holders
	 	 	11	 
	 

	 	Section 2.06
	 	Restrictions on Public Sale by Holders of Registrable Securities
	 	 	11	 
	 

	 	Section 2.07
	 	Expenses
	 	 	12	 
	 

	 	Section 2.08
	 	Indemnification
	 	 	12	 
	 

	 	Section 2.09
	 	Rule 144 Reporting
	 	 	14	 
	 

	 	Section 2.10
	 	Transfer or Assignment of Registration Rights
	 	 	15	 
	 

	 	Section 2.11
	 	Limitation on Subsequent Registration Rights
	 	 	15	 
	ARTICLE III MISCELLANEOUS	 	 	15	 
	 

	 	Section 3.01
	 	Communications
	 	 	15	 
	 

	 	Section 3.02
	 	Successor and Assigns
	 	 	16	 
	 

	 	Section 3.03
	 	Aggregation of Purchased Class B Units and Purchased Units
	 	 	16	 
	 

	 	Section 3.04
	 	Recapitalization, Exchanges, Etc. Affecting the Units
	 	 	16	 
	 

	 	Section 3.05
	 	Specific Performance
	 	 	16	 
	 

	 	Section 3.06
	 	Counterparts
	 	 	16	 
	 

	 	Section 3.07
	 	Headings
	 	 	16	 
	 

	 	Section 3.08
	 	Governing Law
	 	 	16	 
	 

	 	Section 3.09
	 	Severability of Provisions
	 	 	16	 
	 

	 	Section 3.10
	 	Entire Agreement
	 	 	16	 
	 

	 	Section 3.11
	 	Amendment
	 	 	17	 
	 

	 	Section 3.12
	 	No Presumption
	 	 	17	 
	 

	 	Section 3.13
	 	Obligations Limited to Parties to Agreement
	 	 	17	 

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
October 24, 2006 by and among Linn Energy, LLC, a Delaware limited liability company
(“Linn”), and ZLP Fund, L.P. (“ZLP”), Credit Suisse Management LLC (“CSM”),
Structured Finance Americas, LLC (“SFA”), Royal Bank of Canada by its agent RBC Capital
Markets Corporation (“RBC”), Lehman Brothers MLP Partners, L.P. (“LB”), B Y
Partners, L.P. (“BY”), Brahman Partners II, L.P. (“BP II”), Brahman Partners III,
L.P. (“BP III”), Brahman Partners IV, L.P. (“BP IV”), Brahman C.P.F. Partners, L.P.
(“BCPFP”), GPS Income Fund LP (“GPSIF”), GPS High Yield Equities Fund LP
(“GPSHVEF”), GPS Income fund (Cayman) LTD (“GPSIF Cayman”), HFR RVA GPS Master
Trust (“HFR”), Ben Van de Bunt and Laura Fox Living Trust DTD 10/01/98 (“BVB”),
Knee Family Trust DTD 3/7/00 (“KFT”), Stockbridge 1, LLC (“Stockbridge”), Goldman,
Sachs & Co., on behalf of its Principal Strategies Group (“GSC”), Magnetar Capital Fund, L.P. (“MCF”), Alerian Focus Partners LP
(“AFP”), Alerian Opportunity Partners III LP (“AOP”), Alerian Capital Partners LP
(“ACP”), RCH Energy MLP Fund, LP (“RCH”), Strome MLP Fund, L.P. (“Strome”)
and Locust Wood Capital, LP (“LWC”) (each of ZLP, CSM, SFA, RBC, LB, BY, BP II, BP III, BP
IV, BCPFP, GPSIF, GPSHVEF, GPSIF Cayman, HFR, BVB, KFT, Stockbridge, GSC, MCF, AFP, AOP, ACP, RCH,
Strome and LWC, a “Purchaser” and, collectively, the “Purchasers”).

     WHEREAS, this Agreement is made in connection with the Closing of the issuance and sale of the
Purchased Class B Units and the Purchased Units pursuant to the Class B Unit and Unit Purchase
Agreement, dated as of October 24, 2006, by and among Linn and the Purchasers (the “Purchase
Agreement”);

     WHEREAS, Linn has agreed to provide the registration and other rights set forth in this
Agreement for the benefit of the Purchasers pursuant to the Purchase Agreement; and

     WHEREAS, it is a condition to the obligations of each Purchaser and Linn under the Purchase
Agreement that this Agreement be executed and delivered.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
by each party hereto, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used herein without definition shall have
the meanings given to them in the Purchase Agreement. The terms set forth below are used herein as
so defined:

     “Agreement” has the meaning specified therefor in the introductory paragraph.

     “Effectiveness Period” has the meaning specified therefor in Section 2.01(a)(i) of
this Agreement.

     “Holder” means the record holder of any Registrable Securities.

 

 

     “Included Registrable Securities” has the meaning specified therefor in Section
2.02(a) of this Agreement.

     “Liquidated Damages” has the meaning specified therefor in Section 2.01(a)(ii) of this
Agreement.

     “Liquidated Damages Multiplier” means (i) the product of $20.55 times the number of
Class B Units purchased by such Purchaser plus (ii) the product of $21.00 times the number of Units
purchased by such Purchaser.

     “Linn” has the meaning specified therefor in the introductory paragraph.

     “Losses” has the meaning specified therefor in Section 2.08(a) of this Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the
book-running lead manager of such Underwritten Offering.

     “Opt Out Notice” has the meaning specified therefor in Section 2.02(a) of this
Agreement.

     “Partners” has the meaning specified therefor in Section 2.02(b) of this Agreement.

     “Purchase Agreement” has the meaning specified therefor in the Recitals of this
Agreement.

     “Purchaser” and “Purchasers” have the meanings specified therefor in the
introductory paragraph of this Agreement.

     “Purchaser Underwriter Registration Statement” has the meaning specified therefor in
Section 2.04(o) of this Agreement.

     “Registrable Securities” means: (i) the Purchased Units, (ii) the Units issuable upon
conversion of the Purchased Class B Units, (iii) any Units issued as Liquidated Damages pursuant to
this Agreement and (iv) any Units issuable upon conversion of Class B Units issued as Liquidated
Damages pursuant to this Agreement, all of which Registrable Securities are subject to the rights
provided herein until such rights terminate pursuant to the provisions hereof.

     “Registration Expenses” has the meaning specified therefor in Section 2.07(a) of this
Agreement.

     “Registration Statement” has the meaning specified therefor in Section 2.01(a)(i) of
this Agreement.

     “Selling Expenses” has the meaning specified therefor in Section 2.07(a) of this
Agreement.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

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     “Underwritten Offering” means an offering (including an offering pursuant to a
Registration Statement) in which Units are sold to an underwriter on a firm commitment basis for
reoffering to the public or an offering that is a “bought deal” with one or more investment banks.

     Section 1.02 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security when: (a) a registration statement covering such Registrable Security has been
declared effective by the Commission and such Registrable Security has been sold or disposed of
pursuant to such effective registration statement; (b) such Registrable Security has been disposed
of pursuant to any section of Rule 144 (or any similar provision then in force) under the
Securities Act; (c) such Registrable Security can be disposed of pursuant to Rule 144(k) (or any
similar provision then in force) under the Securities Act; (d) such Registrable Security is held by
Linn or one of its Subsidiaries; or (e) such Registrable Security has been sold in a private
transaction in which the transferor’s rights under this Agreement are not assigned to the
transferee of such securities.

ARTICLE II

REGISTRATION RIGHTS

     Section 2.01 Registration.

          (a) Registration.

               (i) Deadline To Go Effective. As soon as practicable following the Closing, but in any event
within 75 days of the Closing Date, Linn shall prepare and file a registration statement under the
Securities Act to permit the resale of the Registrable Securities from time to time, including as
permitted by Rule 415 under the Securities Act (or any similar provision then in force) under the
Act with respect to all of the Registrable Securities (the “Registration Statement”). Linn
shall use its commercially reasonable efforts to cause the Registration Statement to become
effective no later than 120 days following the Closing Date. A Registration Statement filed
pursuant to this Section 2.01 shall be on such appropriate registration form of the Commission as
shall be selected by Linn. Linn will use its commercially reasonable efforts to cause the
Registration Statement filed pursuant to this Section 2.01 to be continuously effective under the
Securities Act until the earlier of (i) the date as of which all such Registrable Securities are
sold by the Purchasers or (ii) the date when such Registrable Securities become eligible for resale
under Rule 144(k) (or any similar provision then in force) under the Securities Act (the
“Effectiveness Period”). The Registration Statement when declared effective (including the
documents incorporated therein by reference) shall comply as to form with all applicable
requirements of the Securities Act and the Exchange Act and shall not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading.

               (ii) Failure To Go Effective. If the Registration Statement required by Section 2.01 of this
Agreement is not declared effective within 165 days after the Closing Date, then each Purchaser
shall be entitled to a payment with respect to the Purchased Class B Units and the Purchased Units
of each such Purchaser, as liquidated damages and not as a penalty, of 0.25% of the Liquidated
Damages Multiplier per 30-day period for the first 90 days following

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the 165th day after the Closing Date, increasing by an additional 0.25% of the Liquidated
Damages Multiplier per 30-day period for each subsequent 30 days, up to a maximum of 1.00% of the
Liquidated Damages Multiplier per 30-day period (the “Liquidated Damages”). Initially
there shall be no limitation on the aggregate amount of the Liquidated Damages payable by Linn
under this Agreement to each Purchaser; provided, however, that if there is a change in the Law or
accounting principles generally accepted in the United States that would result in the Purchased
Units being treated as debt securities instead of equity securities for purposes of Linn’s
financial statements, then the aggregate amount of the Liquidated Damages payable by Linn under
this Agreement to each Purchaser shall not exceed the maximum amount of the Liquidated Damages
Multiplier with respect to such Purchaser allowed for the Purchased Units not to be treated as debt
securities for purposes of Linn’s financial statements. The Liquidated Damages payable pursuant to
the immediately preceding sentence shall be payable within ten Business Days of the end of each
such 30-day period. Any Liquidated Damages shall be paid to each Purchaser in cash or immediately
available funds; provided, however, if Linn certifies that it is unable to pay Liquidated Damages
in cash or immediately available funds because such payment would result in a breach under any of
Linn’s or Linn’s Subsidiaries’ credit facilities or other indebtedness filed as exhibits to the
Linn SEC Documents, then Linn may pay the Liquidated Damages in kind in the form of the issuance of
additional (A) Units or (B) Units and Class B Units. Class B Units may only be issued as
Liquidated Damages if and to the extent required by The Nasdaq Global Market or similar regulation.
If Class B Units are issued as Liquidated Damages as a result of a requirement by The Nasdaq
Global Market or similar regulation, then such Units and/or Class B Units will be issued to each
Purchaser in such a manner as to maximize the number of Units issued to each such Purchaser. Upon
any issuance of Units and/or Class B Units as Liquidated Damages, Linn shall promptly prepare and
file an amendment to the Registration Statement prior to its effectiveness adding such Units and/or
Units issuable upon conversion of Class B Units to such Registration Statement as additional
Registrable Securities. The determination of the number of Units to be issued as Liquidated
Damages shall be equal to the amount of Liquidated Damages divided by the average closing price of
the Units on The Nasdaq Global Market for the ten trading days immediately preceding the date on
which the Liquidated Damages payment is due. The determination of the number of Class B Units to
be issued as Liquidated Damages shall be equal to the amount of Liquidated Damages divided by the
average closing price of the Units on The Nasdaq Global Market for the ten trading days immediately
preceding the date on which the Liquidated Damages payment is due, less a discount of 2%. The
payment of Liquidated Damages to a Purchaser shall cease at such time as the Purchased Class B
Units and the Purchased Units of such Purchaser become eligible for resale under Rule 144(k) under
the Securities Act. As soon as practicable following the date that the Registration Statement
becomes effective, but in any event within two Business Days of such date, Linn shall provide the
Purchasers with written notice of the effectiveness of the Registration Statement.

               (iii) Waiver of Liquidated Damages. If Linn is unable to cause a Registration Statement to go
effective within 165 days following the Closing Date as a result of an acquisition, merger,
reorganization, disposition or other similar transaction, then Linn may request a waiver of the
Liquidated Damages, which may be granted or withheld by the consent of the Holders of a majority of
the Purchased Class B Units and the Purchased Units, taken as a whole, in their sole discretion. A
Purchaser’s rights (and any transferee’s rights pursuant to Section 2.10 of this Agreement) under
this Section 2.01 shall terminate upon the earlier of (i)

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when all such Registrable Securities are sold by such Purchaser or transferee, as applicable,
and (ii) when such Registrable Securities become eligible for resale under Rule 144(k) (or any
similar provision then in force) under the Securities Act.

          (b) Delay Rights. Notwithstanding anything to the contrary contained herein, Linn
may, upon written notice to any Selling Holder whose Registrable Securities are included in the
Registration Statement, suspend such Selling Holder’s use of any prospectus which is a part of the
Registration Statement (in which event the Selling Holder shall discontinue sales of the
Registrable Securities pursuant to the Registration Statement) if (i) Linn is pursuing an
acquisition, merger, reorganization, disposition or other similar transaction and Linn determines
in good faith that Linn’s ability to pursue or consummate such a transaction would be materially
adversely affected by any required disclosure of such transaction in the Registration Statement or
(ii) Linn has experienced some other material non-public event the disclosure of which at such
time, in the good faith judgment of Linn, would materially adversely affect Linn; provided,
however, in no event shall the Purchasers be suspended for a period that exceeds an aggregate of 30
days in any 90-day period or 90 days in any 365-day period. Upon disclosure of such information or
the termination of the condition described above, Linn shall provide prompt notice to the Selling
Holders whose Registrable Securities are included in the Registration Statement, shall promptly
terminate any suspension of sales it has put into effect and shall take such other actions to
permit registered sales of Registrable Securities as contemplated in this Agreement.

          (c) Additional Rights to Liquidated Damages. If (i) the Holders shall be prohibited
from selling their Registrable Securities under the Registration Statement as a result of a
suspension pursuant to Section 2.01(b) of this Agreement in excess of the periods permitted therein
or (ii) the Registration Statement is filed and declared effective but, during the Effectiveness
Period, shall thereafter cease to be effective or fail to be usable for its intended purpose
without being succeeded by a post-effective amendment to the Registration Statement, a supplement
to the prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or
l5(d) of the Exchange Act, then, until the suspension is lifted or a post-effective amendment,
supplement or report is filed with the Commission, but not including any day on which a suspension
is lifted or such amendment, supplement or report is filed and declared effective, if applicable,
Linn shall owe the Holders an amount equal to the Liquidated Damages, following (x) the date on
which the suspension period exceeded the permitted period under 2.01(b) of this Agreement or (y)
the day after the Registration Statement ceased to be effective or failed to be useable for its
intended purposes, as liquidated damages and not as a penalty. For purposes of this Section
2.01(c), a suspension shall be deemed lifted on the date that notice that the suspension has been
lifted is delivered to the Holders pursuant to Section 3.01 of this Agreement.

     Section 2.02 Piggyback Rights.

          (a) Participation. If at any time Linn proposes to file (i) a prospectus supplement
to an effective shelf registration statement, other than the Registration Statement contemplated by
Section 2.01 of this Agreement, or (ii) a registration statement, other than a shelf registration
statement, in either case, for the sale of Units in an Underwritten Offering for its own account
and/or another Person, then as soon as practicable but not less than three

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Business Days prior to the filing of (x) any preliminary prospectus supplement relating to
such Underwritten Offering pursuant to Rule 424(b) under the Securities Act, (y) the prospectus
supplement relating to such Underwritten Offering pursuant to Rule 424(b) under the Securities Act
(if no preliminary prospectus supplement is used) or (z) such registration statement, as the case
may be, then Linn shall give notice of such proposed Underwritten Offering to the Holders and such
notice shall offer the Holders the opportunity to include in such Underwritten Offering such number
of Registrable Securities (the “Included Registrable Securities”) as each such Holder may
request in writing; provided, however, that if Linn has been advised by the Managing Underwriter
that the inclusion of Registrable Securities for sale for the benefit of the Holders will have a
material adverse effect on the price, timing or distribution of the Units in the Underwritten
Offering, then the amount of Registrable Securities to be offered for the accounts of Holders shall
be determined based on the provisions of Section 2.02(b) of this Agreement. The notice required to
be provided in this Section 2.02(a) to Holders shall be provided on a Business Day pursuant to
Section 3.01 hereof and receipt of such notice shall be confirmed by such Holder. Each such Holder
shall then have three Business Days after receiving such notice to request inclusion of Registrable
Securities in the Underwritten Offering, except that such Holder shall have one Business Day after
such Holder confirms receipt of the notice to request inclusion of Registrable Securities in the
Underwritten Offering in the case of a “bought deal” or “overnight transaction” where no
preliminary prospectus is used. If no request for inclusion from a Holder is received within the
specified time, such Holder shall have no further right to participate in such Underwritten
Offering. If, at any time after giving written notice of its intention to undertake an
Underwritten Offering and prior to the closing of such Underwritten Offering, Linn shall determine
for any reason not to undertake or to delay such Underwritten Offering, Linn may, at its election,
give written notice of such determination to the Selling Holders and, (x) in the case of a
determination not to undertake such Underwritten Offering, shall be relieved of its obligation to
sell any Included Registrable Securities in connection with such terminated Underwritten Offering,
and (y) in the case of a determination to delay such Underwritten Offering, shall be permitted to
delay offering any Included Registrable Securities for the same period as the delay in the
Underwritten Offering. Any Selling Holder shall have the right to withdraw such Selling Holder’s
request for inclusion of such Selling Holder’s Registrable Securities in such offering by giving
written notice to Linn of such withdrawal up to and including the time of pricing of such offering.
Each Holder’s rights under this Section 2.02(a) shall terminate when such Holder (together with
any Affiliates of such Holder) holds less than $15,000,000 of Purchased Class B Units (or Units
issued upon conversion of the Class B Units) and Purchased Units, based on the Commitment Amounts.
Notwithstanding the foregoing, any Holder may deliver written notice (an “Opt Out Notice”)
to Linn requesting that such Holder not receive notice from Linn of any proposed Underwritten
Offering; provided, that such Holder may later revoke any such notice.

          (b) Priority of Rights. If the Managing Underwriter or Underwriters of any proposed
Underwritten Offering of Units included in an Underwritten Offering involving Included Registrable
Securities advises Linn, or Linn reasonably determines, that the total amount of Units that the
Selling Holders and any other Persons intend to include in such offering exceeds the number that
can be sold in such offering without being likely to have a material adverse effect on the price,
timing or distribution of the Units offered or the market for the Units, then the Units to be
included in such Underwritten Offering shall include the number of Registrable Securities that such
Managing Underwriter or Underwriters advises Linn, or Linn

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reasonably determines, can be sold without having such adverse effect, with such number to be
allocated (i) first, to Linn, and (ii) second, pro rata among (A) Quantum Energy Partners II, LP, a
Delaware limited partnership, Clark Partners I, L.P., a New York limited partnership, Kings Highway
Investment, LLC, a Connecticut limited liability company and Wauwinet Energy Partners, LLC, a
Delaware limited liability company (collectively, the “Partners”) and (B) the Selling
Holders who have requested participation in such Underwritten Offering. The pro rata allocations
for each such Partner and each such Selling Holder shall be the product of (a) the aggregate number
of Units proposed to be sold by all Partners and Selling Holders in such Underwritten Offering
multiplied by (b) the fraction derived by dividing (x) the number of Units owned on the Closing
Date by such Partner or Selling Holder by (y) the aggregate number of Units owned on the Closing
Date by all Partners and Selling Holders participating in the Underwritten Offering. All
participating Selling Holders shall have the opportunity to share pro rata that portion of such
priority allocable to any Selling Holder(s) not so participating. As of the date of execution of
this Agreement, there are no other Persons with Registration Rights relating to Units or Class B
Units other than as described in this Section 2.02(b).

     Section 2.03 Underwritten Offering.

          (a) Request for Underwritten Offering. Any one or more Holders that collectively hold
greater than $15 million of Registrable Securities, based on the purchase price per unit under the
Purchase Agreement, may deliver written notice to Linn that such Holders wish to dispose of an
aggregate of at least $15 million of Registrable Securities, based on the purchase price per unit
under the Purchase Agreement, in an Underwritten Offering. Upon receipt of any such written
request, Linn shall retain underwriters, effect such sale though an Underwritten Offering,
including entering into an underwriting agreement in customary form with the Managing Underwriter
or Underwriters, which shall include, among other provisions, indemnities to the effect and to the
extent provided in Section 2.08, and take all reasonable actions as are requested by the Managing
Underwriter or Underwriters to expedite or facilitate the disposition of such Registrable
Securities; provided, however, Linn management will not be required to participate in any roadshow
or similar marketing effort on behalf of any such Holder.

          (b) General Procedures. In connection with any Underwritten Offering under this
Agreement, Linn shall be entitled to select the Managing Underwriter or Underwriters. In
connection with an Underwritten Offering contemplated by this Agreement in which a Selling Holder
participates, each Selling Holder and Linn shall be obligated to enter into an underwriting
agreement that contains such representations, covenants, indemnities and other rights and
obligations as are customary in underwriting agreements for firm commitment offerings of
securities. No Selling Holder may participate in such Underwritten Offering unless such Selling
Holder agrees to sell its Registrable Securities on the basis provided in such underwriting
agreement and completes and executes all questionnaires, powers of attorney, indemnities and other
documents reasonably required under the terms of such underwriting agreement. Each Selling Holder
may, at its option, require that any or all of the representations and warranties by, and the other
agreements on the part of, Linn to and for the benefit of such underwriters also be made to and for
such Selling Holder’s benefit and that any or all of the conditions precedent to the obligations of
such underwriters under such underwriting agreement also be conditions precedent to its
obligations. No Selling Holder shall be required to make any representations or warranties to or
agreements with Linn or the underwriters other than representations, warranties

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or agreements regarding such Selling Holder and its ownership of the securities being
registered on its behalf, its intended method of distribution and any other representation required
by Law. If any Selling Holder disapproves of the terms of an underwriting, such Selling Holder may
elect to withdraw therefrom by notice to Linn and the Managing Underwriter; provided, however, that
such withdrawal must be made up to and including the time of pricing of such Underwritten Offering.
No such withdrawal or abandonment shall affect Linn’s obligation to pay Registration Expenses.

     Section 2.04 Sale Procedures. In connection with its obligations under this Article
II, Linn will, as expeditiously as possible:

          (a) prepare and file with the Commission such amendments and supplements to the Registration
Statement and the prospectus used in connection therewith as may be necessary to keep the
Registration Statement effective for the Effectiveness Period and as may be necessary to comply
with the provisions of the Securities Act with respect to the disposition of all securities covered
by the Registration Statement;

          (b) if a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from the Registration Statement and the Managing Underwriter at any time
shall notify Linn in writing that, in the sole judgment of such Managing Underwriter, inclusion of
detailed information to be used in such prospectus supplement is of material importance to the
success of the Underwritten Offering of such Registrable Securities, use its commercially
reasonable efforts to include such information in such prospectus supplement;

          (c) furnish to each Selling Holder (i) as far in advance as reasonably practicable before
filing the Registration Statement or any other registration statement contemplated by this
Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete
drafts of all such documents proposed to be filed (including exhibits and each document
incorporated by reference therein to the extent then required by the rules and regulations of the
Commission), and provide each such Selling Holder the opportunity to object to any information
pertaining to such Selling Holder and its plan of distribution that is contained therein and make
the corrections reasonably requested by such Selling Holder with respect to such information prior
to filing the Registration Statement or such other registration statement or supplement or
amendment thereto, and (ii) such number of copies of the Registration Statement or such other
registration statement and the prospectus included therein and any supplements and amendments
thereto as such Persons may reasonably request in order to facilitate the public sale or other
disposition of the Registrable Securities covered by such Registration Statement or other
registration statement;

          (d) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Registration Statement or any other registration statement
contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the
Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall
reasonably request; provided, however, that Linn will not be required to qualify generally to
transact business in any jurisdiction where it is not then required to so qualify or to take any
action which would subject it to general service of process in any such jurisdiction where it is
not then so subject;

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          (e) promptly notify each Selling Holder and each underwriter of Registrable Securities, at any
time when a prospectus relating thereto is required to be delivered by any of them under the
Securities Act, of (i) the filing of the Registration Statement or any other registration statement
contemplated by this Agreement or any prospectus or prospectus supplement to be used in connection
therewith, or any amendment or supplement thereto, and, with respect to such Registration Statement
or any other registration statement or any post-effective amendment thereto, when the same has
become effective; and (ii) any written comments from the Commission with respect to any filing
referred to in clause (i) and any written request by the Commission for amendments or supplements
to the Registration Statement or any other registration statement or any prospectus or prospectus
supplement thereto;

          (f) immediately notify each Selling Holder and each underwriter of Registrable Securities, at
any time when a prospectus relating thereto is required to be delivered under the Securities Act,
of (i) the happening of any event as a result of which the prospectus or prospectus supplement
contained in the Registration Statement or any other registration statement contemplated by this
Agreement, as then in effect, includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing; (ii) the issuance or threat of issuance
by the Commission of any stop order suspending the effectiveness of the Registration Statement or
any other registration statement contemplated by this Agreement, or the initiation of any
proceedings for that purpose; or (iii) the receipt by Linn of any notification with respect to the
suspension of the qualification of any Registrable Securities for sale under the applicable
securities or blue sky laws of any jurisdiction. Following the provision of such notice, Linn
agrees to as promptly as practicable amend or supplement the prospectus or prospectus supplement or
take other appropriate action so that the prospectus or prospectus supplement does not include an
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the circumstances then
existing and to take such other action as is necessary to remove a stop order, suspension, threat
thereof or proceedings related thereto;

          (g) upon request and subject to appropriate confidentiality obligations, furnish to each
Selling Holder copies of any and all transmittal letters or other correspondence with the
Commission or any other governmental agency or self-regulatory body or other body having
jurisdiction (including any domestic or foreign securities exchange) relating to such offering of
Registrable Securities;

          (h) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel
for Linn dated the effective date of the applicable registration statement or the date of any
amendment or supplement thereto, and a letter of like kind dated the date of the closing under the
underwriting agreement, and (ii) a “cold comfort” letter, dated the date of the applicable
registration statement or the date of any amendment or supplement thereto and a letter of like kind
dated the date of the closing under the underwriting agreement, in each case, signed by the
independent public accountants who have certified Linn’s financial statements included or
incorporated by reference into the applicable registration statement, and each of the opinion and
the “cold comfort” letter shall be in customary form and covering substantially the same matters
with respect to such registration statement (and the prospectus and any prospectus supplement
included therein) as are customarily covered in opinions of issuer’s counsel and in accountants’

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letters delivered to the underwriters in Underwritten Offerings of securities and such other
matters as such underwriters or Selling Holders may reasonably request;

          (i) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

          (j) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Linn personnel as is reasonable and customary to enable such
parties to establish a due diligence defense under the Securities Act; provided, however, that Linn
need not disclose any such information to any such representative unless and until such
representative has entered into or is otherwise subject to a confidentiality agreement with Linn
satisfactory to Linn (including any confidentiality agreement referenced in Section 8.06 of the
Purchase Agreement);

          (k) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by Linn are then listed;

          (l) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of Linn to enable the Selling Holders to consummate the
disposition of such Registrable Securities;

          (m) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement; and

          (n) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities.

          (o) Linn agrees that, if any Purchaser could reasonably be deemed to be an “underwriter”, as
defined in Section 2(a)(11) of the Securities Act, in connection with the registration statement in
respect of any registration of Linn’s securities of any Purchaser pursuant to this Agreement, and
any amendment or supplement thereof (any such registration statement or amendment or supplement a
“Purchaser Underwriter Registration Statement”), then Linn will cooperate with such
Purchaser in allowing such Purchaser to conduct customary “underwriter’s due diligence” with
respect to Linn and satisfy its obligations in respect thereof. In addition, at any Purchaser’s
request, Linn will furnish to such Purchaser, on the date of the effectiveness of any Purchaser
Underwriter Registration Statement and thereafter from time to time on such dates as such Purchaser
may reasonably request, (i) a letter, dated such date, from Linn’s independent certified public
accountants in form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering, addressed to such Purchaser, and
(ii) an opinion, dated as of such date, of counsel representing Linn for purposes of such Purchaser
Underwriter Registration Statement, in form, scope and substance as is customarily given in an
underwritten public offering, including a standard “10b-5” opinion for

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such offering, addressed to such Purchaser. Linn will also permit legal counsel to such
Purchaser to review and comment upon any such Purchaser Underwriter Registration Statement at least
five Business Days prior to its filing with the Commission and all amendments and supplements to
any such Purchaser Underwriter Registration Statement within a reasonable number of days prior to
their filing with the Commission and not file any Purchaser Underwriter Registration Statement or
amendment or supplement thereto in a form to which such Purchaser’s legal counsel reasonably
objects.

     Each Selling Holder, upon receipt of notice from Linn of the happening of any event of the
kind described in Section 2.04(e) of this Agreement, shall forthwith discontinue disposition of the
Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 2.04(e) of this Agreement or until it is advised in
writing by Linn that the use of the prospectus may be resumed, and has received copies of any
additional or supplemental filings incorporated by reference in the prospectus, and, if so directed
by Linn, such Selling Holder will, or will request the managing underwriter or underwriters, if
any, to deliver to Linn (at Linn’s expense) all copies in their possession or control, other than
permanent file copies then in such Selling Holder’s possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such notice.

     If requested by a Purchaser, Linn shall: (i) as soon as practicable incorporate in a
prospectus supplement or post-effective amendment such information as such Purchaser reasonably
requests to be included therein relating to the sale and distribution of Registrable Securities,
including information with respect to the number of Registrable Securities being offered or sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable
Securities to be sold in such offering; (ii) as soon as practicable make all required filings of
such prospectus supplement or post-effective amendment after being notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as
practicable, supplement or make amendments to any Registration Statement.

     Section 2.05 Cooperation by Holders. Linn shall have no obligation to include in the
Registration Statement Units of a Holder, or in an Underwritten Offering pursuant to Section 2.02
of this Agreement Units of a Selling Holder, who has failed to timely furnish such information
that, in the opinion of counsel to Linn, is reasonably required in order for the registration
statement or prospectus supplement, as applicable, to comply with the Securities Act.

     Section 2.06 Restrictions on Public Sale by Holders of Registrable Securities. For a
period of 365 days from the Closing Date, each Holder of Registrable Securities who is included in
the Registration Statement agrees not to effect any public sale or distribution of the Registrable
Securities during the 30-day period following completion of an Underwritten Offering of equity
securities by Linn (except as provided in this Section 2.06); provided, however, that the duration
of the foregoing restrictions shall be no longer than the duration of the shortest restriction
generally imposed by the underwriters on the officers or directors or any other Unitholder of Linn
on whom a restriction is imposed in connection with such public offering. In addition, the
provisions of this Section 2.06 shall not apply with respect to a Holder that (A) owns less than
$25,000,000 of Purchased Class B Units and Purchased Units, based on the Commitment Amounts, (B)
has delivered an Opt Out Notice to Linn pursuant to Section 2.02 hereof or (C) has submitted a
notice requesting the inclusion of Registrable Securities in an

11

 

Underwritten Offering pursuant to Section 2.02 or Section 2.03(a) hereof but is unable to do
so as a result of the priority provisions contained in Section 2.02(b) hereof.

     Section 2.07 Expenses.

          (a) Certain Definitions. “Registration Expenses” means all expenses incident
to Linn’s performance under or compliance with this Agreement to effect the registration of
Registrable Securities on the Registration Statement pursuant to Section 2.01 hereof or an
Underwritten Offering covered under this Agreement, and the disposition of such securities,
including, without limitation, all registration, filing, securities exchange listing and The Nasdaq
Global Market fees, all registration, filing, qualification and other fees and expenses of
complying with securities or blue sky laws, fees of the National Association of Securities Dealers,
Inc., transfer taxes and fees of transfer agents and registrars, all word processing, duplicating
and printing expenses and the fees and disbursements of counsel and independent public accountants
for Linn, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance. “Selling Expenses” means all underwriting
fees, discounts and selling commissions allocable to the sale of the Registrable Securities.

          (b) Expenses. Linn will pay all reasonable Registration Expenses as determined in
good faith, including, in the case of an Underwritten Offering, whether or not any sale is made
pursuant to such Underwritten Offering. In addition, except as otherwise provided in Section 2.08
hereof, Linn shall not be responsible for legal fees incurred by Holders in connection with the
exercise of such Holders’ rights hereunder. Each Selling Holder shall pay all Selling Expenses in
connection with any sale of its Registrable Securities hereunder.

     Section 2.08 Indemnification.

          (a) By Linn. In the event of an offering of any Registrable Securities under the
Securities Act pursuant to this Agreement, Linn will indemnify and hold harmless each Selling
Holder thereunder, its directors and officers, and each underwriter, pursuant to the applicable
underwriting agreement with such underwriter, of Registrable Securities thereunder and each Person,
if any, who controls such Selling Holder or underwriter within the meaning of the Securities Act
and the Exchange Act, and its directors and officers, against any losses, claims, damages, expenses
or liabilities (including reasonable attorneys’ fees and expenses) (collectively,
“Losses”), joint or several, to which such Selling Holder, director, officer, underwriter
or controlling Person may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the Registration Statement or any other registration statement
contemplated by this Agreement, any preliminary prospectus, free writing prospectus or final
prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein (in the case of a prospectus, in light of the
circumstances under which they were made) not misleading, and will reimburse each such Selling
Holder, its directors and officers, each such underwriter and each such controlling Person for any
legal or other expenses reasonably incurred by them in

12

 

connection with investigating or defending any such Loss or actions or proceedings; provided,
however, that Linn will not be liable in any such case if and to the extent that any such Loss
arises out of or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in strict conformity with information furnished by such Selling Holder,
its directors or officers or any underwriter or controlling Person in writing specifically for use
in the Registration Statement or such other registration statement, or prospectus supplement, as
applicable. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Selling Holder or any such Selling Holder, its directors or officers
or any underwriter or controlling Person, and shall survive the transfer of such securities by such
Selling Holder.

          (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless Linn, its directors and officers, and each Person, if any, who controls
Linn within the meaning of the Securities Act or of the Exchange Act, and its directors and
officers, to the same extent as the foregoing indemnity from Linn to the Selling Holders, but only
with respect to information regarding such Selling Holder furnished in writing by or on behalf of
such Selling Holder expressly for inclusion in the Registration Statement or any preliminary
prospectus or final prospectus included therein, or any amendment or supplement thereto; provided,
however, that the liability of each Selling Holder shall not be greater in amount than the dollar
amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale
of the Registrable Securities giving rise to such indemnification.

          (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party other than under this Section 2.08. In any action brought
against any indemnified party, it shall notify the indemnifying party of the commencement thereof.
The indemnifying party shall be entitled to participate in and, to the extent it shall wish, to
assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified
party and, after notice from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party shall not be liable to such
indemnified party under this Section 2.08 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to the
indemnified party or (ii) if the defendants in any such action include both the indemnified party
and the indemnifying party and counsel to the indemnified party shall have concluded that there may
be reasonable defenses available to the indemnified party that are different from or additional to
those available to the indemnifying party, or if the interests of the indemnified party reasonably
may be deemed to conflict with the interests of the indemnifying party, then the indemnified party
shall have the right to select a separate counsel and to assume such legal defense and otherwise to
participate in the defense of such action, with the reasonable expenses and fees of such separate
counsel and other reasonable expenses related to such participation to be reimbursed by the
indemnifying party as incurred. Notwithstanding any other provision of this Agreement, no
indemnified party shall settle any action brought

13

 

against it with respect to which it is entitled to indemnification hereunder without the
consent of the indemnifying party, unless the settlement thereof imposes no liability or obligation
on, and includes a complete and unconditional release from all liability of, the indemnifying
party.

          (d) Contribution. If the indemnification provided for in this Section 2.08 is held by
a court or government agency of competent jurisdiction to be unavailable to any indemnified party
or is insufficient to hold them harmless in respect of any Losses, then each such indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Loss in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of such indemnified party
on the other in connection with the statements or omissions which resulted in such Losses, as well
as any other relevant equitable considerations; provided, however, that in no event shall such
Selling Holder be required to contribute an aggregate amount in excess of the dollar amount of
proceeds (net of Selling Expenses) received by such Selling Holder from the sale of Registrable
Securities giving rise to such indemnification. The relative fault of the indemnifying party on
the one hand and the indemnified party on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact has been made by, or relates to, information supplied by
such party, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The parties hereto agree that it would not be just
and equitable if contributions pursuant to this paragraph were to be determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable
considerations referred to herein. The amount paid by an indemnified party as a result of the
Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and
other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any Loss which is the subject of this paragraph. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who is not guilty of such fraudulent misrepresentation.

          (e) Other Indemnification. The provisions of this Section 2.08 shall be in addition
to any other rights to indemnification or contribution which an indemnified party may have pursuant
to law, equity, contract or otherwise.

     Section 2.09 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable
Securities to the public without registration, Linn agrees to use its commercially reasonable
efforts to:

          (a) make and keep public information regarding Linn available, as those terms are understood
and defined in Rule 144 under the Securities Act, at all times from and after the date hereof;

          (b) file with the Commission in a timely manner all reports and other documents required of
Linn under the Securities Act and the Exchange Act at all times from and after the date hereof; and

14

 

          (c) so long as a Holder owns any Registrable Securities, furnish, unless otherwise not
available at no charge by access electronically to the Commission’s EDGAR filing system, to such
Holder forthwith upon request a copy of the most recent annual or quarterly report of Linn, and
such other reports and documents so filed as such Holder may reasonably request in availing itself
of any rule or regulation of the Commission allowing such Holder to sell any such securities
without registration.

     Section 2.10 Transfer or Assignment of Registration Rights. The rights to cause Linn
to register Registrable Securities granted to the Purchasers by Linn under this Article II may be
transferred or assigned by any Purchaser to one or more transferee(s) or assignee(s) of such
Registrable Securities or by total return swap; provided, however, that, except with respect to a
total return swap, (a) unless such transferee is an Affiliate of such Purchaser, each such
transferee or assignee holds Registrable Securities representing at least $15,000,000 of the
Purchased Class B Units and the Purchased Units, based on the Commitment Amounts, (b) Linn is given
written notice prior to any said transfer or assignment, stating the name and address of each such
transferee and identifying the securities with respect to which such registration rights are being
transferred or assigned, and (c) each such transferee assumes in writing responsibility for its
portion of the obligations of such Purchaser under this Agreement.

     Section 2.11 Limitation on Subsequent Registration Rights. From and after the date
hereof, Linn shall not, without the prior written consent of the Holders of a majority of the
outstanding Registrable Securities, (i) enter into any agreement with any current or future holder
of any securities of Linn that would allow such current or future holder to require Linn to include
securities in any registration statement filed by Linn on a basis that is superior in any way to
the piggyback rights granted to the Purchasers hereunder or (ii) grant registration rights to any
other Person that would be superior to the Purchasers’ registration rights hereunder.

ARTICLE III

MISCELLANEOUS

     Section 3.01 Communications. All notices and other communications provided for or
permitted hereunder shall be made in writing by facsimile, electronic mail, courier service or
personal delivery:

          (a) if to Purchaser, to the address set forth under that Purchaser’s signature block in
accordance with the provisions of this Section 3.01;

          (b) if to a transferee of Purchaser, to such Holder at the address provided pursuant to
Section 2.10 hereof; and

          (c) if to Linn, at 650 Washington Road, 8th Floor, Pittsburgh, Pennsylvania 15228 (facsimile:
412.440.1499), notice of which is given in accordance with the provisions of this Section 3.01.

     All such notices and communications shall be deemed to have been received: at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or
electronic mail; and when actually received, if sent by courier service or any other means.

15

 

     Section 3.02 Successor and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and assigns of each of the parties, including subsequent Holders of
Registrable Securities to the extent permitted herein.

     Section 3.03 Aggregation of Purchased Class B Units and Purchased Units. All
Purchased Class B Units and Purchased Units held or acquired by Persons who are Affiliates of one
another shall be aggregated together for the purpose of determining the availability of any rights
under this Agreement.

     Section 3.04 Recapitalization, Exchanges, Etc. Affecting the Units. The provisions of
this Agreement shall apply to the full extent set forth herein with respect to any and all units of
Linn or any successor or assign of Linn (whether by merger, consolidation, sale of assets or
otherwise) which may be issued in respect of, in exchange for or in substitution of, the
Registrable Securities, and shall be appropriately adjusted for combinations, unit splits,
recapitalizations and the like occurring after the date of this Agreement.

     Section 3.05 Specific Performance. Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed
that each such Person, in addition to and without limiting any other remedy or right it may have,
will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction or other equitable
relief. The existence of this right will not preclude any such Person from pursuing any other
rights and remedies at law or in equity which such Person may have.

     Section 3.06 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     Section 3.07 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 3.08 Governing Law. The Laws of the State of New York shall govern this
Agreement without regard to principles of conflict of Laws.

     Section 3.09 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

     Section 3.10 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the rights granted by Linn set forth herein. This
Agreement

16

 

and the Purchase Agreement supersede all prior agreements and understandings between the
parties with respect to such subject matter.

     Section 3.11 Amendment. This Agreement may be amended only by means of a written
amendment signed by Linn and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and adversely affect the
rights of any Holder hereunder without the consent of such Holder.

     Section 3.12 No Presumption. If any claim is made by a party relating to any
conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a
particular party or its counsel.

     Section 3.13 Obligations Limited to Parties to Agreement. Each of the Parties hereto
covenants, agrees and acknowledges that no Person other than the Purchasers (and their permitted
assignees) and Linn shall have any obligation hereunder and that, notwithstanding that one or more
of the Purchasers may be a corporation, partnership or limited liability company, no recourse under
this Agreement or the Purchase Agreement or under any documents or instruments delivered in
connection herewith or therewith shall be had against any former, current or future director,
officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of
any of the Purchasers or any former, current or future director, officer, employee, agent, general
or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, whether by
the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any
applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever
shall attach to, be imposed on or otherwise be incurred by any former, current or future director,
officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of
any of the Purchasers or any former, current or future director, officer, employee, agent, general
or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, as such, for
any obligations of the Purchasers under this Agreement or the Purchase Agreement or any documents
or instruments delivered in connection herewith or therewith or for any claim based on, in respect
of or by reason of such obligation or its creation.

[The remainder of this page is intentionally left blank]

17

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	LINN ENERGY, LLC

 	 
	 	By:  	/s/ Kolja
Rockov	 
	 	 	Kolja Rockov  	 	 
	 	 	Executive Vice President and
Chief
Executive Officer	 
	 

18

 

	 	 	 
	BEN VAN DE BURT AND LAURA FOX 

LIVING TRUST DTD
	 
	 	 
	By:

	 	/s/ Ben Van de Burt
	 

	 	 
	 
	 	 
	Name:

	 	Ben Van de Burt
	 

	 	 
	 
	 	 
	Title:
	 	 
	 

	 	 

Signature
Page to
Registration Rights Agreement

 

 

	 	 	 
	ZLP FUND, L.P.
	 
	 	 
	By:

	 	/s/ Craig M. Lucas
	 

	 	 
	 
	 	 
	Name:

	 	Craig M. Lucas
	 

	 	 
	 
	 	 
	Title:

	 	Managing Member/General Partner
	 

	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 
	CREDIT SUISSE MANAGEMENT LLC
	 
	 	 
	By:

	 	/s/ Robert (illegible)
	 

	 	 
	 
	 	 
	Name:

	 	Robert (illegible)
	 

	 	 
	 
	 	 
	Title:

	 	Managing Director
	 

	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 
	STRUCTURED FINANCE AMERICAS, LLC
	 
	 	 
	By:

	 	/s/ Jill H. Rathjen
	 

	 	 
	 
	 	 
	Name:

	 	Jill H. Rathjen
	 

	 	 
	 
	 	 
	Title:

	 	V.P.
	 

	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	By:

	 	/s/ Andrea Leuna
	 

	 	 
	 
	 	 
	Name:

	 	Andrea Leuna
	 

	 	 
	 
	 	 
	Title:
	 	 
	 

	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA
	 	 	by its agent
	 
	 	 	 	 	 	 
	 	 	RBC CAPITAL MARKETS CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven Milke	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Steven Milke	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Josef Maskatel	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Josef Maskatel	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Director and Senior Counsel	 	 
	 

	 	 	 	 	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN BROTHERS MLP PARTNERS, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Cannon	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Michael J. Cannon	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 

	 	 	 	 	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	B Y PARTNERS, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President of Brahman Management, L.L.C.	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BRAHMAN PARTNERS II, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President of Brahman Management, L.L.C.	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BRAHMAN PARTNERS III, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President of Brahman Management, L.L.C.	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BRAHMAN PARTNERS IV, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President of Brahman Management, L.L.C.	 	 
	 

	 	 	 	 	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BRAHMAN C.F.P. PARTNERS, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Peter A. Hochfelder	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President of Brahman Management, L.L.C.	 	 
	 

	 	 	 	 	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GPS INCOME FUND LP
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brett Messing	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Brett Messing	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	GPS Partners, L.L.C.	 	 
	 

	 	 	 	 	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	GPS HIGH YIELD EQUITIES FUND LP 

 	 
	 	By:  	/s/ Brett Messing
 	 
	 
	 	Name:  	Brett Messing 	 
	 
	 	Title:  	GPS Partners LLC 	 
	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	GPS INCOME FUND (CAYMAN) LTD

 	 
	 	By:  	/s/ Brett Messing
 	 
	 
	 	Name:  	Brett Messing 	 
	 
	 	Title:  	GPS Partners LLC 	 
	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	HFR RVA GPS MASTER TRUST

 	 
	 	By:  	/s/ Brett Messing
 	 
	 
	 	Name:  	Brett Messing 	 
	 
	 	Title:  	GPS Partners LLC 	 
	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	KNEE FAMILY TRUST DTD

 	 
	 	By:  	/s/
Kevin R. Knee
 	 
	 
	 	Name:  	Kevin R. Knee 	 
	 
	 	Title:  	Trustee 	 
	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	GOLDMAN, SACHS & CO., on behalf of
	 	 	its Principal Strategies Group
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gaurav Bhandori
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gaurav Bhandori
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Director
	 

	 	 	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	Magnetar Capital Fund, LP
	 

	 	By:
	 	Magnetar Financial LLC, its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Paul Smith
	 

	 	 	 	 
	 

	 	Name:
	 	Paul Smith
	 

	 	Title:
	 	General Counsel

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	ALERIAN FOCUS PARTNERS LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gabriel Hammond
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gabriel Hammond
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Member — General Partner
	 
	 	 	 	 
	 	 	ALERIAN OPPORTUNITY PARTNERS III LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gabriel Hammond
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gabriel Hammond
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Member — General Partner
	 
	 	 	 	 
	 	 	ALERIAN CAPITAL PARTNERS LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gabriel Hammond
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Gabriel Hammond
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Member — General Partner

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	RCH ENERGY MLP FUND, LP
	 
	 	 	 	 
	 

	 	By:
	 	RCH Energy MLP Fund, GP, LP
its general partner
	 

	 	By:
	 	RR Advisors, LLC, its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert Raymond
	 

	 	 	 	 
	 

	 	 	 	Robert Raymond, its sole member

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	STROME MLP FUND, LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael Achterberg
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Michael Achterberg
	 
	 	 	 	 
	 

	 	Title:
	 	Chief Financial Officer

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	LOCUST WOOD CAPITAL, LP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen J. Enrico
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Stephen J. Enrico
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	Managing Member
	 

	 	 	 	 

Signature Page to

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	Stockbridge 1, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stockbridge 1, LLC
	 

	 	 	 	 
	 
	 	 	 	 

Signature Page to

Registration Rights Agreement

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