Document:

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                                                                    Exhibit 10.2

                                                                  Execution Copy

                          CONTRIBUTION, CONVEYANCE AND
                              ASSUMPTION AGREEMENT

     This Contribution, Conveyance and Assumption Agreement, dated as of March
15, 2006 is entered into by and among LEGACY RESERVES LP, a Delaware limited
partnership (the "Partnership"), LEGACY RESERVES OPERATING LP, a Delaware
limited partnership (the "OLP"), LEGACY RESERVES GP, LLC, a Delaware limited
liability company (the "GP"), LEGACY RESERVES OPERATING GP LLC, a Delaware
limited liability company (the "OLP GP"), MORIAH PROPERTIES, LTD., a Texas
limited partnership ("Moriah Properties"), DAB RESOURCES, LTD., a Texas limited
partnership ("DAB Resources"), BROTHERS PRODUCTION PROPERTIES, LTD., a Texas
limited partnership ("Brothers"), BROTHERS PRODUCTION COMPANY, INC., a Texas
corporation ("Brothers Production"), BROTHERS OPERATING COMPANY, INC., a Texas
corporation ("Brothers Operating"), J&W MCGRAW PROPERTIES, LTD., a Texas limited
partnership ("J&W Properties"), H2K HOLDINGS, LTD., a Texas limited partnership
("H2K Holdings"), MBN PROPERTIES LP, a Delaware limited partnership ("MBN
Properties"), CHARITIES SUPPORT FOUNDATION, INC., a Texas nonprofit corporation
("CSFI"), MORIAH FOUNDATION, a Texas nonprofit corporation ("Moriah
Foundation"), and CARY BROWN FAMILY FOUNDATION, a Texas nonprofit corporation
("CB Foundation"). The foregoing shall be referred to individually as a "Party"
and collectively as the "Parties".

                                    RECITALS:

          WHEREAS, Moriah Properties, DAB Resources, Brothers, Brothers
     Production, Brothers Operating, J&W Properties, H2K Holdings and MBN
     Properties have formed the GP pursuant to the Delaware Limited Liability
     Company Act (the "Delaware LLC Act");

          WHEREAS, the GP and Moriah Properties have formed the Partnership
     pursuant to the Delaware Revised Uniform Limited Partnership Act (the
     "Delaware Limited Partnership Act"), for the purpose of acquiring, owning
     and operating certain oil and natural gas properties located in the Permian
     Basin of West Texas and Southeast New Mexico;

          WHEREAS, the Partnership has formed the OLP GP pursuant to the
     Delaware LLC Act;

          WHEREAS, the Partnership and the OLP GP have formed the OLP pursuant
     to the Delaware Limited Partnership Act.

          NOW, THEREFORE, in consideration of their mutual undertakings and
     agreements hereunder, the Parties undertake and agree as follows:

                                   ARTICLE I
                            DEFINITIONS AND SCHEDULES

1.1 Definitions. The following capitalized terms have the meanings given below:

                                      -1-

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          (a) "Acts" shall mean collectively the Delaware Limited Partnership
     Act, the Delaware LLC Act, and the Delaware Corporation Act.

          (b) "Affiliate" has the meaning assigned to such term in the
     Partnership Agreement.

          (c) "Agreement" means this Contribution, Conveyance and Assumption
     Agreement.

          (d) "Assets" has the meaning assigned to such term in Section 4.1.

          (e) "Beneficial Owner" has the meaning assigned to such term in
     Section 7.2.

          (f) "Brothers" has the meaning assigned to such term in the first
     paragraph of this Agreement.

          (g) "Brothers Assets" shall mean the assets described on Schedule 2.3.

          (h) "Brothers Liabilities" means all obligations and liabilities
     associated with the Brothers Assets.

          (i) "Brothers Operating" has the meaning assigned to such term in the
     first paragraph of this Agreement.

          (j) "Brothers Operating Assets" shall mean the assets described on
     Schedule 2.5.

          (k) "Brothers Operating Liabilities" means all obligations and
     liabilities associated with the Brothers Operating Assets.

          (l) "Brothers Production" has the meaning assigned to such term in the
     first paragraph of this Agreement.

          (m) "Brothers Production Assets" shall mean the assets described on
     Schedule 2.4.

          (n) "Brothers Production Liabilities" means all obligations and
     liabilities associated with the Brothers Production Assets.

          (o) "CB Foundation" has the meaning assigned to such term in the first
     paragraph of this Agreement.

          (p) "CB Foundation Assets" shall mean the assets described on Schedule
     2.11.

          (q) "CB Foundation Liabilities" means all obligations and liabilities
     associated with the CB Foundation Assets.

          (r) "Contributing Party" has the meaning assigned to such term in
     Section 6.12.

                                      -2-

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          (s) "Credit Facility" means the Credit Agreement dated the Effective
     Date among Legacy Reserves LP, as borrower, the various lenders that are
     parties thereto and BNP Paribas, as administrative agent for the lenders,
     providing for a $300,000,000 revolving credit facility.

          (t) "CSFI" has the meaning assigned to such term in the first
     paragraph of this Agreement.

          (u) "CSFI Assets" shall mean the assets described on Schedule 2.9.

          (v) "CSFI Liabilities" means all obligations and liabilities
     associated with the CSFI Assets.

          (w) "DAB Resources" has the meaning assigned to such term in the first
     paragraph of this Agreement.

          (x) "DAB Resources Assets" shall mean the assets described on Schedule
     2.2.

          (y) "DAB Resources Liabilities" means all obligations and liabilities
     associated with the DAB Resources Assets.

          (z) "Delaware Corporation Act" means the Delaware General Corporation
     Law.

          (aa) "Delaware LLC Act" has the meaning assigned to such term in the
     Recitals of this Agreement.

          (bb) "Delaware Limited Partnership Act" has the meaning assigned to
     such term in the Recitals to this Agreement.

          (cc) "Effective Date" means March 15, 2006.

          (dd) "Effective Time" means 12:01 a.m. Eastern Standard Time on the
     Effective Date.

          (ee) "Extended Closing Time" has the meaning assigned to such term in
     the Purchase/Placement Agreement.

          (ff) "Founders Assets" means collectively, the Moriah Properties
     Assets, the DAB Resources Assets, the Brothers Assets, the Brothers
     Production Assets, the Brothers Operating Assets, the J&W Properties
     Assets, the H2K Holdings Assets and the MBN Properties Assets.

          (gg) "H2K Holdings" has the meaning assigned to such term in the first
     paragraph of this Agreement.

          (hh) "H2K Holdings Assets" shall mean the assets described on Schedule
     2.7.

                                      -3-

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          (ii) "H2K Holdings Liabilities" means all obligations and liabilities
     associated with the H2K Holdings Assets.

          (jj) "Individual Assignments" has the meaning assigned to such term in
     Section 2.15.

          (kk) "Initial Purchaser/Placement Agent" means Friedman, Billings,
     Ramsey & Co., Inc.

          (ll) "GP" has the meaning assigned to such term in the first paragraph
     of this Agreement.

          (mm) "J&W Properties" has the meaning assigned to such term in the
     first paragraph of this Agreement.

          (nn) "J&W Properties Assets" shall mean the assets described on
     Schedule 2.6.

          (oo) "J&W Properties Liabilities" means all obligations and
     liabilities associated with the J&W Properties Assets.

          (pp) "Laws" means any and all laws, statutes, ordinances, rules or
     regulations promulgated by a governmental authority, orders of a
     governmental authority, judicial decisions, decisions of arbitrators or
     determinations of any governmental authority or court.

          (qq) "MBN Properties" has the meaning assigned to such term in the
     first paragraph of this Agreement.

          (rr) "MBN Properties Assets" shall mean the assets described on
     Schedule 2.8.

          (ss) "MBN Properties Liabilities" means all obligations and
     liabilities associated with the MBN Properties Assets.

          (tt) "Moriah Foundation" has the meaning assigned to such term in the
     first paragraph of this Agreement.

          (uu) "Moriah Foundation Assets" shall mean the assets described on
     Schedule 2.10.

          (vv) "Moriah Foundation Liabilities" means all obligations and
     liabilities associated with the Moriah Foundation Assets.

          (ww) "Moriah Properties" has the meaning assigned to such term in the
     first paragraph of this Agreement.

          (xx) "Moriah Properties Assets" shall mean the assets described on
     Schedule 2.1.

                                      -4-

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          (yy) "Moriah Properties Liabilities" means all obligations and
     liabilities associated with the Moriah Properties Assets.

          (zz) "Offering" means the offering of Units to be made pursuant to the
     Offering Memorandum.

          (aaa) "Offering Memorandum" means the private offering memorandum
     dated March 6, 2006 relating to the private offering of Units of the
     Partnership.

          (bbb) "OLP" has the meaning assigned to such term in the first
     paragraph of this Agreement.

          (ccc) "Omnibus Agreement" means the Omnibus Agreement dated of even
     date herewith, by and among the Partnership, the GP and the other parties
     thereto.

          (ddd) "Option Closing Time" has the meaning assigned to such term in
     the Purchase/Placement Agreement.

          (eee) "Option Units" has the meaning assigned to such term in the
     Purchase/Placement Agreement.

          (fff) "Partnership Agreement" means the Agreement of Limited
     Partnership of the Partnership, as it may be amended and restated from time
     to time.

          (ggg) "Party and Parties" have the meanings assigned to such terms in
     the first paragraph of this Agreement.

          (hhh) "Purchase/Placement Agreement" means the Purchase/Placement
     Agreement dated March 6, 2006, by and among the Initial Purchaser/Placement
     Agent, the Partnership, and the other parties thereto.

          (iii) "Receiving Party" has the meaning assigned to such term in
     Section 6.12.

          (jjj) "Redeeming Entities" means collectively, Moriah Properties, DAB
     Resources, Brothers, Brothers Production, Brothers Operating, J&W
     Properties and H2K Holdings.

          (kkk) "Redemption Percentage" means the percentage for each of the
     Redeeming Entities as follows:

<TABLE>
<S>                                                               <C>
             Moriah Properties ................................   33.42%
             DAB Resources ....................................    7.84%
             Brothers .........................................   46.48%
             Brothers Production ..............................    2.47%
             Brothers Operating ...............................   0.49%
</TABLE>

                                      -5-

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<TABLE>
<S>                                                          <C>
J&W Properties ..........................................    8.55%
H2K Holdings ............................................    0.75%
</TABLE>

          (lll) "Restriction" has the meaning assigned to such term in Section
     7.2.

          (mmm) "Restriction Asset" has the meaning assigned to such term in
     Section 7.2.

          (nnn) "Selling Parties" means CSFI, Moriah Foundation and CB
     Foundation.

          (ooo) "Units" has the meaning assigned to such term in the Partnership
     Agreement.

1.2 Schedules. The following schedules are attached hereto:

          Schedule 2.1 - Description of Moriah Properties Assets;

          Schedule 2.2 - Description of DAB Resources Assets;

          Schedule 2.3 - Description of Brothers Assets;

          Schedule 2.4 - Description of Brothers Production Assets;

          Schedule 2.5 - Description of Brothers Operating Assets;

          Schedule 2.6 - Description of J&W Properties Assets;

          Schedule 2.7 - Description of H2K Holdings Assets;

          Schedule 2.8 - Description of MBN Properties Assets;

          Schedule 2.9 - Description of CSFI Assets;

          Schedule 2.10 - Description of Moriah Foundation Assets; and

          Schedule 2.11 - Description of CB Foundation Assets

                                   ARTICLE II
                              CLOSING TRANSACTIONS

2.1 Contribution of Moriah Assets to Partnership and GP. Moriah Properties
hereby grants, contributes, transfers, assigns and conveys to the Partnership,
its successors and assigns, a 99.9% undivided interest and to the GP, its
successors and assigns, a .1% undivided interest in the Moriah Properties
Assets, for its and their own use forever.

     TO HAVE AND TO HOLD the Moriah Properties Assets unto the Partnership and
the GP, their respective successors and assigns, in such undivided interests,
together with all and

                                      -6-

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singular the rights and appurtenances thereto in anywise belonging, subject,
however, to the terms and conditions stated in this Agreement forever.

     Moriah Properties acknowledges receipt of 7,334,070 Units from the
Partnership and the continuation of its membership interest in the GP as
consideration for the contributions of undivided interests in the Moriah
Properties Assets.

2.2 Contribution of DAB Resources Assets to Partnership and GP. DAB Resources
hereby grants, contributes, transfers, assigns and conveys to the Partnership,
its successors and assigns, a 99.9% undivided interest and to the GP, its
successors and assigns, a .1% undivided interest in the DAB Resources Assets,
for its and their own use forever.

     TO HAVE AND TO HOLD the DAB Resources Assets unto the Partnership and the
GP, their respective successors and assigns, in such undivided interests,
together with all and singular the rights and appurtenances thereto in anywise
belonging, subject, however, to the terms and conditions stated in this
Agreement forever.

     DAB Resources acknowledges receipt of 859,703 Units from the Partnership
and the continuation of its membership interest in the GP as consideration for
the contributions of undivided interests in the DAB Resources Assets.

2.3 Contribution of Brothers Assets to Partnership and GP. Brothers hereby
grants, contributes, transfers, assigns and conveys to the Partnership, its
successors and assigns, a 99.9% undivided interest and to the GP, its successors
and assigns, a .1% undivided interest in the Brothers Assets, for its and their
own use forever.

     TO HAVE AND TO HOLD the Brothers Assets unto the Partnership and the GP,
their respective successors and assigns, in such undivided interests, together
with all and singular the rights and appurtenances thereto in anywise belonging,
subject, however, to the terms and conditions stated in this Agreement forever.

     Brothers acknowledges receipt of 4,968,945 Units from the Partnership and
the continuation of its membership interest in the GP as consideration for the
contributions of undivided interests in the Brothers Assets.

2.4 Contribution of Brothers Production Assets to Partnership and GP. Brothers
Production hereby grants, contributes, transfers, assigns and conveys to the
Partnership, its successors and assigns, a 99.9% undivided interest and to the
GP, its successors and assigns, a .1% undivided interest in the Brothers
Production Assets, for its and their own use forever.

     TO HAVE AND TO HOLD the Brothers Production Assets unto the Partnership and
the GP, their respective successors and assigns, in such undivided interests,
together with all and singular the rights and appurtenances thereto in anywise
belonging, subject, however, to the terms and conditions stated in this
Agreement forever.

     Brothers Production acknowledges receipt of 264,305 Units from the
Partnership and the continuation of its membership interest in the GP as
consideration for the contributions of undivided interests in the Brothers
Production Assets.

                                      -7-

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2.5 Contribution of Brothers Operating Assets to Partnership and GP. Brothers
Operating hereby grants, contributes, transfers, assigns and conveys to the
Partnership, its successors and assigns, a 99.9% undivided interest and to the
GP, its successors and assigns, a .1% undivided interest in the Brothers
Operating Assets, for its and their own use forever.

     TO HAVE AND TO HOLD the Brothers Operating Assets unto the Partnership and
the GP, their respective successors and assigns, in such undivided interests,
together with all and singular the rights and appurtenances thereto in anywise
belonging, subject, however, to the terms and conditions stated in this
Agreement forever.

     Brothers Operating acknowledges receipt of 52,861 Units from the
Partnership and the continuation of its membership interest in the GP as
consideration for the contributions of undivided interests in the Brothers
Operating Assets.

2.6 Contribution of J&W Properties Assets to Partnership and GP. J&W Properties
hereby grants, contributes, transfers, assigns and conveys to the Partnership,
its successors and assigns, a 99.9% undivided interest and to the GP, its
successors and assigns, a .1% undivided interest in the J&W Properties Assets,
for its and their own use forever.

     TO HAVE AND TO HOLD the J&W Properties Assets unto the Partnership and the
GP, their respective successors and assigns in such undivided interests,
together with all and singular the rights and appurtenances thereto in anywise
belonging, subject, however, to the terms and conditions stated in this
Agreement forever.

     J&W Properties acknowledges receipt of 914,246 Units from the Partnership
and the continuation of its membership interest in the GP as consideration for
the contributions of undivided interests in the J&W Properties Assets.

2.7 Contribution of H2K Holdings Assets to Partnership and GP. H2K Holdings
hereby grants, contributes, transfers, assigns and conveys to the Partnership,
its successors and assigns, a 99.9% undivided interest and to the GP, its
successors and assigns, a .1% undivided interest in the H2K Holdings Assets, for
its and their own use forever.

     TO HAVE AND TO HOLD the H2K Holdings Assets unto the Partnership and the
GP, their respective successors and assigns, in such undivided interests,
together with all and singular the rights and appurtenances thereto in anywise
belonging, subject, however, to the terms and conditions stated in this
Agreement forever.

     H2K Holdings acknowledges receipt of 83,499 Units from the Partnership and
the continuation of its membership interest in the GP as consideration for the
contributions of undivided interests in the H2K Holdings Assets.

2.8 Contribution of MBN Properties Assets to Partnership and GP. MBN Properties
hereby grants, contributes, transfers, assigns and conveys to the Partnership,
its successors and assigns, a 99.9% undivided interest and to the GP, its
successors and assigns, a .1% undivided interest in the MBN Properties Assets,
for its and their own use forever.

                                      -8-

<PAGE>

     TO HAVE AND TO HOLD the MBN Properties Assets unto the Partnership and the
GP, their respective successors and assigns, in such undivided interests,
together with all and singular the rights and appurtenances thereto in anywise
belonging, subject, however, to the terms and conditions stated in this
Agreement forever.

     MBN Properties acknowledges receipt of 3,162,438 Units from the Partnership
and the continuation of its membership interest in the GP as consideration for
the contributions of undivided interests in the MBN Properties Assets, and
acknowledges the payment by the Partnership of $65,300,000.00, said cash payment
to be treated for all purposes as though the Partnership assumed all of the
outstanding indebtedness of MBN Properties with respect to the MBN Properties
Assets immediately followed by the discharge by the Partnership of such
indebtedness with any cash received by MBN Properties for such purpose to be
held as agent for the lenders, who shall immediately be paid such cash in
repayment of the debt assumed.

2.9 Conveyance and Sale of CSFI Assets to the OLP. CSFI hereby grants,
contributes, transfers, assigns and conveys to the OLP, its successors and
assigns, for its and their own use forever, all right, title and interest in and
to the CSFI Assets.

     TO HAVE AND TO HOLD the CSFI Assets unto the OLP, its successors and
assigns, together with all and singular the rights and appurtenances thereto in
anywise belonging, subject, however, to the terms and conditions stated in this
Agreement, and in the Individual Assignments forever.

     CSFI acknowledges receipt of $209,106.00 from the OLP as consideration for
the sale of the CSFI Assets.

2.10 Conveyance and Sale of Moriah Foundation Assets to the OLP. Moriah
Foundation hereby grants, contributes, transfers, assigns and conveys to the
OLP, its successors and assigns, for its and their own use forever, all right,
title and interest in and to the Moriah Foundation Assets.

     TO HAVE AND TO HOLD the Moriah Foundation Assets unto the OLP, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, and in the Individual Assignments forever.

     Moriah Foundation acknowledges receipt of $3,736,874.00 from the OLP as
consideration for the sale of the Moriah Foundation Assets.

2.11 Conveyance and Sale of the CB Foundation Assets to the OLP. CB Foundation
hereby grants, contributes, transfers, assigns and conveys to the OLP, its
successors and assigns, for its and their own use forever, all right, title and
interest in and to the CB Foundation Assets.

     TO HAVE AND TO HOLD the CB Foundation Assets unto the OLP, its successors
and assigns, together with all and singular the rights and appurtenances thereto
in anywise belonging, subject, however, to the terms and conditions stated in
this Agreement, and in the Individual Assignments forever.

                                      -9-

<PAGE>

     CB Foundation acknowledges receipt of $3,736,874.00 from the OLP as
consideration for the sale of the CB Foundation Assets.

2.12 GP Contribution to Partnership of Interest in Founders Assets. The GP
hereby grants, contributes, transfers, assigns and conveys to the Partnership,
its successors and assigns, for its and their own use forever, a .1% undivided
interest in the Founders Assets.

     TO HAVE AND TO HOLD said undivided interest in the Founders Assets unto the
Partnership, its successors and assigns, together with all and singular the
rights and appurtenances thereto in anywise belonging, subject, however, to the
terms and conditions stated in this Agreement forever.

     The GP acknowledges receipt of a .1% general partner interest in the
Partnership as consideration for the contribution of said undivided interest in
the Founders Assets.

2.13 Partnership Contribution of Founders Assets to OLP and OLP GP. The
Partnership hereby grants, contributes, transfers, assigns and conveys to the
OLP, its successors and assigns, a 99.99% undivided interest and to the OLP GP,
its successors and assigns, a .01% undivided interest in the Founders Assets,
for its and their own use forever.

     TO HAVE AND TO HOLD said undivided interest in the Founders Assets unto the
OLP and the OLP GP, their respective successors and assigns, in such undivided
interests, together with all and singular the rights and appurtenances thereto
in anywise belonging, subject, however, to the terms and conditions stated in
this Agreement forever.

     The Partnership acknowledges the continuation of its 99.99% limited partner
interest in the OLP and the continuation of its 100% membership interest in the
OLP GP as consideration for the contribution of the respective undivided
interests in the Founders Assets.

2.14 OLP GP Contribution of Undivided Interest in Founders Assets to OLP. The
OLP GP hereby contributes and conveys to the OLP, its successors and assigns, a
..01% undivided interest in the Founders Assets, for its and their own use
forever.

     TO HAVE AND TO HOLD said undivided interest in the Founders Assets unto the
OLP, its successors and assigns, for its and their own use forever, together
with all and singular the rights and appurtenances thereto in anywise belonging,
subject, however, to the terms and conditions stated in this Agreement forever.

     The OLP GP acknowledges the continuation of its .01% general partner
interest in the OLP as consideration for the contribution of such undivided
interest in the Founders Assets.

2.15 Individual Assignments. To further evidence the contributions of the Assets
reflected in this Agreement, each Party making such contribution may have
executed and delivered to the Party receiving such contribution certain
conveyance, assignment and bill of sale instruments (the "Individual
Assignments"). The Individual Assignments shall evidence and perfect such
contributions and conveyances made by this Agreement and shall not constitute a
second conveyance of any assets or interests therein and are not intended to
modify, and shall not modify, any of the terms, covenants and conditions set
forth in this Agreement.

                                      -10-

<PAGE>

2.16 Borrowing Under Credit Facility. The Partnership shall borrow
$65,800,000.00 under the Credit Facility and contribute such borrowing to the
OLP and the OLP will use such amount together with net proceeds of the Offering
to, among other things, pay the Selling Parties and MBN Properties the cash
amounts set forth for such Parties above.

2.17 Redemption of Units. Subject to contribution of the Founders Assets, the
receipt by the Contributing Parties of the Units set forth above and the
issuance of Units pursuant to the Offering, the Partnership shall redeem from
the Redeeming Entities 4,400,000 Units (4,650,00 Units if the all the Option
Units are issued), in the aggregate, at a price of $15.895 per Unit for total
consideration of $69,938,000.00 ($73,911,750.00 if all of the Option Units are
issued). The Partnership shall redeem from the Redeeming Entities, pro rata, in
accordance with their Redemption Percentage, (a) on the Effective Date and on
the Extended Closing Time (if applicable), a total of 4,400,000 Units and (b) at
the Option Closing Time, if any, a number of Units equal to the Option Units
delivered by the Partnership to the purchasers thereof.

                                  ARTICLE III
                        ASSUMPTION OF CERTAIN LIABILITIES

3.1 Assumption of Moriah Properties Liabilities by the OLP. In connection with
the contribution of the Moriah Properties Assets to the OLP, as set forth above,
the OLP hereby assumes and agrees to duly and timely pay, perform and discharge
all of the Moriah Properties Liabilities, to the full extent that Moriah
Properties has been heretofore or would have been in the future obligated to
pay, perform and discharge the Moriah Properties Liabilities were it not for
such contribution and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Moriah Properties Liabilities shall not (a) increase the
obligation of the OLP with respect to the Moriah Properties Liabilities beyond
that of Moriah Properties, (b) waive any valid defense that was available to
Moriah Properties with respect to the Moriah Properties Liabilities or (c)
enlarge any rights or remedies of any third party under any of the Moriah
Properties Liabilities.

3.2 Assumption of DAB Resources Liabilities by the OLP. In connection with the
contribution of the DAB Resources Assets to the OLP, as set forth above, the OLP
hereby assumes and agrees to duly and timely pay, perform and discharge all of
the DAB Resources Liabilities, to the full extent that DAB Resources has been
heretofore or would have been in the future obligated to pay, perform and
discharge the DAB Resources Liabilities were it not for such contribution and
the execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the DAB
Resources Liabilities shall not (a) increase the obligation of the OLP with
respect to the DAB Resources Liabilities beyond that of DAB Resources, (b) waive
any valid defense that was available to DAB Resources with respect to the DAB
Resources Liabilities or (c) enlarge any rights or remedies of any third party
under any of the DAB Resources Liabilities.

3.3 Assumption of Brothers Liabilities by the OLP. In connection with the
contribution of the Brothers Assets to the OLP, as set forth above, the OLP
hereby assumes and agrees to duly and timely pay, perform and discharge all of
the Brothers Liabilities, to the full extent that Brothers has been heretofore
or would have been in the future obligated to pay, perform and discharge the
Brothers Liabilities were it not for such contribution and the execution and
delivery

                                      -11-

<PAGE>

of this Agreement; provided, however, that said assumption and agreement to duly
and timely pay, perform and discharge the Brothers Liabilities shall not (a)
increase the obligation of the OLP with respect to the Brothers Liabilities
beyond that of Brothers, (b) waive any valid defense that was available to
Brothers with respect to the Brothers Liabilities or (c) enlarge any rights or
remedies of any third party under any of the Brothers Liabilities.

3.4 Assumption of Brothers Production Liabilities by the OLP. In connection with
the contribution of the Brothers Production Assets to the OLP, as set forth
above, the OLP hereby assumes and agrees to duly and timely pay, perform and
discharge all of the Brothers Production Liabilities, to the full extent that
Brothers Production has been heretofore or would have been in the future
obligated to pay, perform and discharge the Brothers Production Liabilities were
it not for such contribution and the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the Brothers Production Liabilities shall not (a) increase
the obligation of the OLP with respect to the Brothers Production Liabilities
beyond that of Brothers Production, (b) waive any valid defense that was
available to Brothers Production with respect to the Brothers Production
Liabilities or (c) enlarge any rights or remedies of any third party under any
of the Brothers Production Liabilities.

3.5 Assumption of Brothers Operating Liabilities by the OLP. In connection with
the contribution of the Brothers Operating Assets to the OLP, as set forth
above, the OLP hereby assumes and agrees to duly and timely pay, perform and
discharge all of the Brothers Operating Liabilities, to the full extent that
Brothers Operating has been heretofore or would have been in the future
obligated to pay, perform and discharge the Brothers Operating Liabilities were
it not for such contribution and the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the Brothers Operating Liabilities shall not (a) increase
the obligation of the OLP with respect to the Brothers Operating Liabilities
beyond that of Brothers Operating, (b) waive any valid defense that was
available to Brothers Operating with respect to the Brothers Operating
Liabilities or (c) enlarge any rights or remedies of any third party under any
of the Brothers Operating Liabilities.

3.6 Assumption of J&W Properties Liabilities by the OLP. In connection with the
contribution of the J&W Properties Assets to the OLP, as set forth above, the
OLP hereby assumes and agrees to duly and timely pay, perform and discharge all
of the J&W Properties Liabilities, to the full extent that J&W Properties has
been heretofore or would have been in the future obligated to pay, perform and
discharge the J&W Properties Liabilities were it not for such contribution and
the execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the J&W
Properties Liabilities shall not (a) increase the obligation of the OLP with
respect to the J&W Properties Liabilities beyond that of J&W Properties, (b)
waive any valid defense that was available to J&W Properties with respect to the
J&W Properties Liabilities or (c) enlarge any rights or remedies of any third
party under any of the J&W Properties Liabilities.

3.7 Assumption of H2K Holdings Liabilities by the OLP. In connection with the
contribution of the H2K Holdings Assets to the OLP, as set forth above, the OLP
hereby assumes and agrees to duly and timely pay, perform and discharge all of
the H2K Holdings Liabilities, to the full extent that H2K Holdings has been
heretofore or would have been in the future obligated

                                      -12-

<PAGE>

to pay, perform and discharge the H2K Holdings Liabilities were it not for such
contribution and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the H2K Holdings Liabilities shall not (a) increase the obligation of
the OLP with respect to the H2K Holdings Liabilities beyond that of H2K
Holdings, (b) waive any valid defense that was available to H2K Holdings with
respect to the H2K Holdings Liabilities or (c) enlarge any rights or remedies of
any third party under any of the H2K Holdings Liabilities.

3.8 Assumption of MBN Properties Liabilities by the OLP. In connection with the
contribution of the MBN Properties Assets to the OLP, as set forth above, the
OLP hereby assumes and agrees to duly and timely pay, perform and discharge all
of the MBN Properties Liabilities, to the full extent that MBN Properties has
been heretofore or would have been in the future obligated to pay, perform and
discharge the MBN Properties Liabilities were it not for such contribution and
the execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the MBN
Properties Liabilities shall not (a) increase the obligation of the OLP with
respect to the MBN Properties Liabilities beyond that of MBN Properties, (b)
waive any valid defense that was available to MBN Properties with respect to the
MBN Properties Liabilities or (c) enlarge any rights or remedies of any third
party under any of the MBN Properties Liabilities.

3.9 Assumption of CSFI Liabilities by the OLP. In connection with the
contribution of the CSFI Assets to the OLP, as set forth above, the OLP hereby
assumes and agrees to duly and timely pay, perform and discharge all of the CSFI
Liabilities, to the full extent that CSFI has been heretofore or would have been
in the future obligated to pay, perform and discharge the CSFI Liabilities were
it not for such contribution and the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the CSFI Liabilities shall not (a) increase the obligation
of the OLP with respect to the CSFI Liabilities beyond that of CSFI, (b) waive
any valid defense that was available to CSFI with respect to the CSFI
Liabilities or (c) enlarge any rights or remedies of any third party under any
of the CSFI Liabilities.

3.10 Assumption of Moriah Foundation Liabilities by the OLP. In connection with
the contribution of the Moriah Foundation Assets to the OLP, as set forth above,
the OLP hereby assumes and agrees to duly and timely pay, perform and discharge
all of the Moriah Foundation Liabilities, to the full extent that Moriah
Foundation has been heretofore or would have been in the future obligated to
pay, perform and discharge the Moriah Foundation Liabilities were it not for
such contribution and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Moriah Foundation Liabilities shall not (a) increase the
obligation of the OLP with respect to the Moriah Foundation Liabilities beyond
that of Moriah Foundation, (b) waive any valid defense that was available to
Moriah Foundation with respect to the Moriah Foundation Liabilities or (c)
enlarge any rights or remedies of any third party under any of the Moriah
Foundation Liabilities.

3.11 Assumption of CB Foundation Liabilities by the OLP. In connection with the
contribution of the CB Foundation Assets to the OLP, as set forth above, the OLP
hereby assumes and agrees to duly and timely pay, perform and discharge all of
the CB Foundation Liabilities, to the full extent that CB Foundation has been
heretofore or would have been in the

                                      -13-

<PAGE>

future obligated to pay, perform and discharge the CB Foundation Liabilities
were it not for such contribution and the execution and delivery of this
Agreement; provided, however, that said assumption and agreement to duly and
timely pay, perform and discharge the CB Foundation Liabilities shall not (a)
increase the obligation of the OLP with respect to the CB Foundation Liabilities
beyond that of CB Foundation, (b) waive any valid defense that was available to
CB Foundation with respect to the CB Family Foundation Liabilities or (c)
enlarge any rights or remedies of any third party under any of the CB Foundation
Liabilities.

3.12 General Provisions. Notwithstanding anything to the contrary contained in
this Agreement including, without limitation, the terms and provisions of this
Article III, none of the parties shall be deemed to have assumed, and none of
the Assets have been or are being contributed subject to any liens or security
interests securing consensual indebtedness covering any of the assets, except to
the extent set forth on a schedule to this Agreement, and all such liens and
security interests shall be deemed to be excluded from the assumptions of
liabilities made under this Article III.

                                   ARTICLE IV
                                  TITLE MATTERS

4.1 Encumbrances.

          (a) Except to the extent provided in Section 3.12 or any other
     document executed in connection with this Agreement or the Offering
     including, without limitation, the Omnibus Agreement, the contribution and
     conveyance (by operation of law or otherwise) of the various physical
     assets as reflected in this Agreement (collectively, the "Assets") are made
     expressly subject to all recorded encumbrances, agreements, defects,
     restrictions, and adverse claims covering the respective Assets (other than
     liens not shown on any of the schedules to this Agreement) and all laws,
     rules, regulations, ordinances, judgments and orders of governmental
     authorities or tribunals having or asserting jurisdiction over the Assets
     and operations conducted thereon or therewith, in each case to the extent
     the same are valid and enforceable and affect the Assets, including,
     without limitation, (i) all matters that a current on the ground survey,
     title insurance commitment or policy, or visual inspection of the Assets
     would reflect, (ii) the applicable liabilities assumed in Article III, and
     (iii) all matters contained in the Individual Assignments.

          (b) To the extent that certain jurisdictions in which the Assets are
     located may require that documents be recorded in order to evidence the
     transfers of title reflected in this Agreement, then the provisions set
     forth in Section 4.1(a) immediately above shall also be applicable to the
     conveyances under such documents.

4.2 Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

          (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
     DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING,
     WITHOUT LIMITATION THE OMNIBUS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE
     THAT

                                      -14-

<PAGE>

     NONE OF THE PARTIES HAS MADE, DOES NOT MAKE, AND EACH SUCH PARTY
     SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES,
     PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER
     WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR
     PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE
     ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR
     ENVIRONMENTAL CONDITION OF THE ASSETS GENERALLY, INCLUDING THE PRESENCE OR
     LACK OF HAZARDOUS SUBSTANCES OR OTHER MATTERS ON THE ASSETS, (B) THE INCOME
     TO BE DERIVED FROM THE ASSETS, (C) THE SUITABILITY OF THE ASSETS FOR ANY
     AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (D) THE
     COMPLIANCE OF OR BY THE ASSETS OR THEIR OPERATION WITH ANY LAWS (INCLUDING
     WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL PROTECTION, POLLUTION OR LAND
     USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE
     HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR
     A PARTICULAR PURPOSE OF THE ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY
     OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR
     THE OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, THE
     PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE OPPORTUNITY TO INSPECT
     THE RESPECTIVE ASSETS, AND EACH IS RELYING SOLELY ON ITS OWN INVESTIGATION
     OF THE RESPECTIVE ASSETS AND NOT ON ANY INFORMATION PROVIDED OR TO BE
     PROVIDED BY ANY OF THE PARTIES. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER
     DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
     OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, NONE OF THE
     PARTIES IS LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN
     STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE ASSETS
     FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE
     EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
     WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE
     OMNIBUS AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES THAT TO THE MAXIMUM
     EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE ASSETS AS PROVIDED FOR
     HEREIN IS MADE IN AN "AS IS", "WHERE IS" CONDITION WITH ALL FAULTS, AND THE
     ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO ALL OF THE MATTERS CONTAINED
     IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND
     CONVEYANCE OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS
     SECTION HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE
     INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR
     WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE
     ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN

                                      -15-
<PAGE>

     EFFECT, OR OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER
     DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
     OFFERING, INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT.

          (b) To the extent that certain jurisdictions in which the Assets are
     located may require that documents be recorded in order to evidence the
     transfers of title reflected in this Agreement, then the disclaimers set
     forth in Section 4.2(a) immediately above shall also be applicable to the
     conveyances under such documents.

          (c) The contributions of the Assets made under this Agreement are made
     with full rights of substitution and subrogation of the respective parties
     receiving such contributions, and all persons claiming by, through and
     under such parties, to the extent assignable, in and to all covenants and
     warranties by the predecessors-in-title of the parties contributing the
     Assets, and with full subrogation of all rights accruing under applicable
     statutes of limitation and all rights of action of warranty against all
     former owners of the Assets.

          (d) Each of the Parties agrees that the disclaimers contained in this
     Section 4.2 are "conspicuous" disclaimers. Any covenants implied by statute
     or law by the use of the words "grant," "convey," "bargain," "sell,"
     "assign," "transfer," "deliver," or "set over" or any of them or any other
     words used in this Agreement or any exhibits hereto are hereby expressly
     disclaimed, waived or negated.

     Each of the Parties hereby waives compliance with any applicable bulk sales
law or any similar law in any applicable jurisdiction in respect of the
transactions contemplated by this Agreement.

                                    ARTICLE V
                               FURTHER ASSURANCES

5.1 Further Assurances. From time to time after the date hereof, and without any
further consideration, the Parties agree to execute, acknowledge and deliver all
such additional deeds, assignments, bills of sale, conveyances, instruments,
notices, releases, acquittances and other documents, and will do all such other
acts and things, all in accordance with applicable law, as may be necessary or
appropriate (a) more fully to assure that the applicable Parties own all of the
properties, rights, titles, interests, estates, remedies, powers and privileges
granted by this Agreement, or which are intended to be so granted (b) more fully
and effectively to vest in the applicable Parties and their respective
successors and assigns beneficial and record title to the interests contributed
and assigned by this Agreement or intended so to be and to more fully and
effectively carry out the purposes and intent of this Agreement.

5.2 Other Assurances. From time to time after the date hereof, and without any
further consideration, each of the Parties shall execute, acknowledge and
deliver all such additional instruments, notices and other documents, and will
do all such other acts and things, all in accordance with applicable law, as may
be necessary or appropriate to more fully and effectively carry out the purposes
and intent of this Agreement. Without limiting the generality of the

                                      -16-

<PAGE>

foregoing, the Parties acknowledge that the Parties have used their good faith
efforts to attempt to identify all of the assets being contributed to the GP,
the Partnership, the OLP GP and the OLP as required in connection with the
Offering. However, due to the age of some of those assets and the difficulties
in locating appropriate data with respect to some of the assets it is possible
that assets intended to be contributed to the GP, the Partnership, the OLP GP
and the OLP were not identified and therefore are not included in the assets so
contributed. It is the express intent of the Parties that the Partnership and
the OLP own all assets necessary to operate the assets that are identified in
this Agreement and in the Offering Memorandum. To the extent any assets were not
identified but are necessary to the operation of assets that were identified,
then the intent of the Parties is that all such unidentified assets are intended
to be conveyed to the Partnership and the OLP. To the extent such assets are
identified at a later date, the Parties shall take the appropriate actions
required in order to convey all such assets to the Partnership or the OLP.
Likewise, to the extent that assets are identified at a later date that were not
intended by the Parties to be conveyed as reflected in the Offering Memorandum,
the Parties shall take the appropriate actions required in order to convey all
such assets to the appropriate party.

                                   ARTICLE VI
                               POWERS OF ATTORNEY

6.1 Moriah Properties. Moriah Properties hereby constitutes and appoints the OLP
and its successors and assigns, its true and lawful attorney-in-fact with full
power of substitution for it and in its name, place and stead or otherwise on
behalf of Moriah Properties and its successors and assigns, and for the benefit
of the OLP and its successors and assigns, to demand and receive from time to
time the Moriah Properties Assets and to execute in the name of Moriah
Properties and its successors and assigns, instruments of conveyance,
instruments of further assurance and to give receipts and releases in respect of
the same, and from time to time to institute and prosecute in the name of Moriah
Properties for the benefit of the OLP as may be appropriate, any and all
proceedings at law, in equity or otherwise which the OLP and its successors and
assigns, may deem proper in order (i) to collect, assert or enforce any claims,
rights or titles of any kind in and to the Moriah Properties Assets, (ii) to
defend and compromise any and all actions, suits or proceedings in respect of
any of the Moriah Properties Assets, and (iii) to do any and all such acts and
things in furtherance of this Agreement as the OLP or its successors or assigns
shall deem advisable. Moriah Properties hereby declares that the appointments
hereby made and the powers hereby granted are coupled with an interest and are
and shall be irrevocable and perpetual and shall not be terminated by any act of
Moriah Properties or its successors or assigns or by operation of law.

6.2 DAB Resources. DAB Resources hereby constitutes and appoints the OLP and its
successors and assigns, its true and lawful attorney-in-fact with full power of
substitution for it and in its name, place and stead or otherwise on behalf of
DAB Resources and its successors and assigns, and for the benefit of the OLP and
its successors and assigns, to demand and receive from time to time the DAB
Resources Assets and to execute in the name of DAB Resources and its successors
and assigns, instruments of conveyance, instruments of further assurance and to
give receipts and releases in respect of the same, and from time to time to
institute and prosecute in the name of DAB Resources for the benefit of the OLP
as may be appropriate, any and all proceedings at law, in equity or otherwise
which the OLP and its successors and assigns, may deem proper in order (i) to
collect, assert or enforce any claims, rights or titles of any kind in and

                                      -17-

<PAGE>

to the DAB Resources Assets, (ii) to defend and compromise any and all actions,
suits or proceedings in respect of any of the DAB Resources Assets, and (iii) to
do any and all such acts and things in furtherance of this Agreement as the OLP
or its successors or assigns shall deem advisable. DAB Resources hereby declares
that the appointments hereby made and the powers hereby granted are coupled with
an interest and are and shall be irrevocable and perpetual and shall not be
terminated by any act of DAB Resources or its successors or assigns or by
operation of law.

6.3 Brothers. Brothers hereby constitutes and appoints the OLP and its
successors and assigns, its true and lawful attorney-in-fact with full power of
substitution for it and in its name, place and stead or otherwise on behalf of
Brothers and its successors and assigns, and for the benefit of the OLP and its
successors and assigns, to demand and receive from time to time the Brothers
Assets and to execute in the name of Brothers and its successors and assigns,
instruments of conveyance, instruments of further assurance and to give receipts
and releases in respect of the same, and from time to time to institute and
prosecute in the name of Brothers for the benefit of the OLP as may be
appropriate, any and all proceedings at law, in equity or otherwise which the
OLP and its successors and assigns, may deem proper in order (i) to collect,
assert or enforce any claims, rights or titles of any kind in and to the
Brothers Assets, (ii) to defend and compromise any and all actions, suits or
proceedings in respect of any of the Brothers Assets, and (iii) to do any and
all such acts and things in furtherance of this Agreement as the OLP or its
successors or assigns shall deem advisable. Brothers hereby declares that the
appointments hereby made and the powers hereby granted are coupled with an
interest and are and shall be irrevocable and perpetual and shall not be
terminated by any act of Brothers or its successors or assigns or by operation
of law.

6.4 Brothers Production. Brothers Production hereby constitutes and appoints the
OLP and its successors and assigns, its true and lawful attorney-in-fact with
full power of substitution for it and in its name, place and stead or otherwise
on behalf of Brothers Production and its successors and assigns, and for the
benefit of the OLP and its successors and assigns, to demand and receive from
time to time the Brothers Production Assets and to execute in the name of
Brothers Production and its successors and assigns, instruments of conveyance,
instruments of further assurance and to give receipts and releases in respect of
the same, and from time to time to institute and prosecute in the name of
Brothers Production for the benefit of the OLP as may be appropriate, any and
all proceedings at law, in equity or otherwise which the OLP and its successors
and assigns, may deem proper in order (i) to collect, assert or enforce any
claims, rights or titles of any kind in and to the Brothers Production Assets,
(ii) to defend and compromise any and all actions, suits or proceedings in
respect of any of the Brothers Production Assets, and (iii) to do any and all
such acts and things in furtherance of this Agreement as the OLP or its
successors or assigns shall deem advisable. Brothers Production hereby declares
that the appointments hereby made and the powers hereby granted are coupled with
an interest and are and shall be irrevocable and perpetual and shall not be
terminated by any act of Brothers Production or its successors or assigns or by
operation of law.

6.5 Brothers Operating. Brothers Operating hereby constitutes and appoints the
OLP and its successors and assigns, its true and lawful attorney-in-fact with
full power of substitution for it and in its name, place and stead or otherwise
on behalf of Brothers Operating and its successors and assigns, and for the
benefit of the OLP and its successors and assigns, to demand and receive

                                      -18-

<PAGE>

from time to time the Brothers Operating Assets and to execute in the name of
Brothers Operating and its successors and assigns, instruments of conveyance,
instruments of further assurance and to give receipts and releases in respect of
the same, and from time to time to institute and prosecute in the name of
Brothers Operating for the benefit of the OLP as may be appropriate, any and all
proceedings at law, in equity or otherwise which the OLP and its successors and
assigns, may deem proper in order (i) to collect, assert or enforce any claims,
rights or titles of any kind in and to the Brothers Operating Assets, (ii) to
defend and compromise any and all actions, suits or proceedings in respect of
any of the Brothers Operating Assets, and (iii) to do any and all such acts and
things in furtherance of this Agreement as the OLP or its successors or assigns
shall deem advisable. Brothers Operating hereby declares that the appointments
hereby made and the powers hereby granted are coupled with an interest and are
and shall be irrevocable and perpetual and shall not be terminated by any act of
Brothers Operating or its successors or assigns or by operation of law.

6.6 J&W Properties. J&W Properties hereby constitutes and appoints the OLP and
its successors and assigns, its true and lawful attorney-in-fact with full power
of substitution for it and in its name, place and stead or otherwise on behalf
of J&W Properties and its successors and assigns, and for the benefit of the OLP
and its successors and assigns, to demand and receive from time to time the J&W
Properties Assets and to execute in the name of J&W Properties and its
successors and assigns, instruments of conveyance, instruments of further
assurance and to give receipts and releases in respect of the same, and from
time to time to institute and prosecute in the name of J&W Properties for the
benefit of the OLP as may be appropriate, any and all proceedings at law, in
equity or otherwise which the OLP and its successors and assigns, may deem
proper in order (i) to collect, assert or enforce any claims, rights or titles
of any kind in and to the J&W Properties Assets, (ii) to defend and compromise
any and all actions, suits or proceedings in respect of any of the J&W
Properties Assets, and (iii) to do any and all such acts and things in
furtherance of this Agreement as the OLP or its successors or assigns shall deem
advisable. J&W Properties hereby declares that the appointments hereby made and
the powers hereby granted are coupled with an interest and are and shall be
irrevocable and perpetual and shall not be terminated by any act of J&W
Properties or its successors or assigns or by operation of law.

6.7 H2K Holdings. H2K Holdings hereby constitutes and appoints the OLP and its
successors and assigns, its true and lawful attorney-in-fact with full power of
substitution for it and in its name, place and stead or otherwise on behalf of
H2K Holdings and its successors and assigns, and for the benefit of the OLP and
its successors and assigns, to demand and receive from time to time the H2K
Holdings Assets and to execute in the name of H2K Holdings and its successors
and assigns, instruments of conveyance, instruments of further assurance and to
give receipts and releases in respect of the same, and from time to time to
institute and prosecute in the name of H2K Holdings for the benefit of the OLP
as may be appropriate, any and all proceedings at law, in equity or otherwise
which the OLP and its successors and assigns, may deem proper in order (i) to
collect, assert or enforce any claims, rights or titles of any kind in and to
the H2K Holdings Assets, (ii) to defend and compromise any and all actions,
suits or proceedings in respect of any of the H2K Holdings Assets, and (iii) to
do any and all such acts and things in furtherance of this Agreement as the OLP
or its successors or assigns shall deem advisable. H2K Holdings hereby declares
that the appointments hereby made and the powers hereby granted are coupled with
an interest and are and shall be irrevocable and perpetual and

                                      -19-

<PAGE>

shall not be terminated by any act of H2K Holdings or its successors or assigns
or by operation of law.

6.8 MBN Properties. MBN Properties hereby constitutes and appoints the OLP and
its successors and assigns, its true and lawful attorney-in-fact with full power
of substitution for it and in its name, place and stead or otherwise on behalf
of MBN Properties and its successors and assigns, and for the benefit of the OLP
and its successors and assigns, to demand and receive from time to time the MBN
Properties Assets and to execute in the name of MBN Properties and its
successors and assigns, instruments of conveyance, instruments of further
assurance and to give receipts and releases in respect of the same, and from
time to time to institute and prosecute in the name of MBN Properties for the
benefit of the OLP as may be appropriate, any and all proceedings at law, in
equity or otherwise which the OLP and its successors and assigns, may deem
proper in order (i) to collect, assert or enforce any claims, rights or titles
of any kind in and to the MBN Properties Assets, (ii) to defend and compromise
any and all actions, suits or proceedings in respect of any of the MBN
Properties Assets, and (iii) to do any and all such acts and things in
furtherance of this Agreement as the OLP or its successors or assigns shall deem
advisable. MBN Properties hereby declares that the appointments hereby made and
the powers hereby granted are coupled with an interest and are and shall be
irrevocable and perpetual and shall not be terminated by any act of MBN
Properties or its successors or assigns or by operation of law.

6.9 CSFI. CSFI hereby constitutes and appoints the OLP and its successors and
assigns, its true and lawful attorney-in-fact with full power of substitution
for it and in its name, place and stead or otherwise on behalf of CSFI and its
successors and assigns, and for the benefit of the OLP and its successors and
assigns, to demand and receive from time to time the CSFI Assets and to execute
in the name of CSFI and its successors and assigns, instruments of conveyance,
instruments of further assurance and to give receipts and releases in respect of
the same, and from time to time to institute and prosecute in the name of CSFI
for the benefit of the OLP as may be appropriate, any and all proceedings at
law, in equity or otherwise which the OLP and its successors and assigns, may
deem proper in order (i) to collect, assert or enforce any claims, rights or
titles of any kind in and to the CSFI Assets, (ii) to defend and compromise any
and all actions, suits or proceedings in respect of any of the CSFI Assets, and
(iii) to do any and all such acts and things in furtherance of this Agreement as
the OLP or its successors or assigns shall deem advisable. CSFI hereby declares
that the appointments hereby made and the powers hereby granted are coupled with
an interest and are and shall be irrevocable and perpetual and shall not be
terminated by any act of CSFI or its successors or assigns or by operation of
law.

6.10 Moriah Foundation. Moriah Foundation hereby constitutes and appoints the
OLP and its successors and assigns, its true and lawful attorney-in-fact with
full power of substitution for it and in its name, place and stead or otherwise
on behalf of Moriah Foundation and its successors and assigns, and for the
benefit of the OLP and its successors and assigns, to demand and receive from
time to time the Moriah Foundation Assets and to execute in the name of Moriah
Foundation and its successors and assigns, instruments of conveyance,
instruments of further assurance and to give receipts and releases in respect of
the same, and from time to time to institute and prosecute in the name of Moriah
Foundation for the benefit of the OLP as may be appropriate, any and all
proceedings at law, in equity or otherwise which the OLP and its successors and
assigns, may deem proper in order (i) to collect, assert or enforce any claims,

                                      -20-

<PAGE>

rights or titles of any kind in and to the Moriah Foundation Assets, (ii) to
defend and compromise any and all actions, suits or proceedings in respect of
any of the Moriah Foundation Assets, and (iii) to do any and all such acts and
things in furtherance of this Agreement as the OLP or its successors or assigns
shall deem advisable. Moriah Foundation hereby declares that the appointments
hereby made and the powers hereby granted are coupled with an interest and are
and shall be irrevocable and perpetual and shall not be terminated by any act of
Moriah Foundation or its successors or assigns or by operation of law.

6.11 CB Foundation. CB Foundation hereby constitutes and appoints the OLP and
its successors and assigns, its true and lawful attorney-in-fact with full power
of substitution for it and in its name, place and stead or otherwise on behalf
of CB Foundation and its successors and assigns, and for the benefit of the OLP
and its successors and assigns, to demand and receive from time to time the CB
Foundation Assets and to execute in the name of CB Foundation and its successors
and assigns, instruments of conveyance, instruments of further assurance and to
give receipts and releases in respect of the same, and from time to time to
institute and prosecute in the name of CB Foundation for the benefit of the OLP
as may be appropriate, any and all proceedings at law, in equity or otherwise
which the OLP and its successors and assigns, may deem proper in order (i) to
collect, assert or enforce any claims, rights or titles of any kind in and to
the CB Foundation Assets, (ii) to defend and compromise any and all actions,
suits or proceedings in respect of any of the CB Foundation Assets, and (iii) to
do any and all such acts and things in furtherance of this Agreement as the OLP
or its successors or assigns shall deem advisable. CB Foundation hereby declares
that the appointments hereby made and the powers hereby granted are coupled with
an interest and are and shall be irrevocable and perpetual and shall not be
terminated by any act of CB Foundation or its successors or assigns or by
operation of law.

6.12 Contributing Parties. In addition to the specific powers of attorney
granted in the other sections of this Article VI, each of the Parties that has
contributed the Assets as reflected by this Agreement (each a "Contributing
Party") hereby constitutes and appoints the party to whom the respective Assets
were contributed and its successors and assigns (the "Receiving Party"), its
true and lawful attorney-in-fact with full power of substitution for it and in
its name, place and stead or otherwise on behalf of the applicable Contributing
Party and its successors and assigns, and for the benefit of the applicable
Receiving Party and its successors and assigns, to demand and receive from time
to time the applicable Assets contributed and to execute in the name of the
applicable Contributing Party and its successors and assigns instruments of
conveyance, instruments of further assurance and to give receipts and releases
in respect of the same, and from time to time to institute and prosecute in the
name of the applicable Contributing Party for the benefit of the applicable
Receiving Party as may be appropriate, any and all proceedings at law, in equity
or otherwise which the applicable Receiving Party and its successors and
assigns, may deem proper in order to (a) collect, assert or enforce any claims,
rights or titles of any kind in and to the applicable Assets, (b) defend and
compromise any and all actions, suits or proceedings in respect of any of the
applicable Assets, and (c) do any and all such acts and things in furtherance of
this Agreement as the applicable Receiving Party or its successors or assigns
shall deem advisable. Each Contributing Party hereby declares that the
appointments hereby made and the powers hereby granted are coupled with an
interest and are and shall be irrevocable and perpetual and shall not be
terminated by any act of any Contributing Party or its successors or assigns or
by operation of law.

                                      -21-

<PAGE>

                                   ARTICLE VII
                                  MISCELLANEOUS

7.1 Order of Completion of Transactions. The transactions provided for in
Article II (except as otherwise noted) and Article III of this Agreement shall
be completed in the following order:

          First, the transactions provided for in Article II, other than those
transactions provided for in Section 2.17, shall be completed in the order set
forth therein;

          Second, the transactions provided for in Article III shall be
completed in the order set forth therein; and

          Third, the transactions provided for in Article II, Section 2.17 shall
be completed in the order set forth therein.

7.2 Consents; Restriction on Assignment. If there are prohibitions against or
conditions to the contribution and conveyance of one or more of the Assets
without the prior written consent of third parties, including, without
limitation, governmental agencies (other than consents of a ministerial nature
which are normally granted in the ordinary course of business), which if not
satisfied would result in a breach of such prohibitions or conditions or would
give an outside party the right to terminate rights of the Party to whom the
applicable Assets were intended to be conveyed (the "Beneficial Owner") with
respect to such portion of the Assets (herein called a "Restriction"), then any
provision contained in this Agreement to the contrary notwithstanding, the
transfer of title to or interest in each such portion of the Assets (herein
called the "Restriction Asset") pursuant to this Agreement shall not become
effective unless and until such Restriction is satisfied, waived or no longer
applies. When and if such a Restriction is so satisfied, waived or no longer
applies, to the extent permitted by applicable law and any applicable
contractual provisions, the assignment of the Restriction Asset subject thereto
shall become effective automatically as of the Effective Time, without further
action on the part of any Party. Each of the applicable Parties that were
involved with the conveyance of a Restriction Asset agree to use their
reasonable best efforts to obtain on a timely basis satisfaction of any
Restriction applicable to any Restriction Asset conveyed by or acquired by any
of them. The description of any portion of the Assets as a "Restriction Asset"
shall not be construed as an admission that any Restriction exists with respect
to the transfer of such portion of the Assets. In the event that any Restriction
Asset exists, the applicable Party agrees to continue to hold such Restriction
Asset in trust for the exclusive benefit of the applicable Party to whom such
Restriction Asset was intended to be conveyed and to otherwise use its
reasonable best efforts to provide such other Party with the benefits thereof,
and the party holding such Restriction Asset will enter into other agreements,
or take such other action as it may deem necessary, in order to ensure that the
applicable Party to whom such Restriction Asset was intended to be conveyed has
the assets and concomitant rights necessary to enable the applicable Party to
operate such Restriction Asset in all material respects as it was operated prior
to the Effective Time.

7.3 Costs. The OLP shall pay all sales, use and similar taxes arising out of the
contributions, conveyances and deliveries to be made hereunder, and shall pay
all documentary, filing, recording, transfer, deed, and conveyance taxes and
fees required in connection therewith. In addition, the OLP shall be responsible
for all costs, liabilities and expenses (including court costs

                                      -22-

<PAGE>

and reasonable attorneys' fees) incurred in connection with the satisfaction or
waiver of any Restriction pursuant to Section 7.2 to the extent such Restriction
was disclosed to the OLP on or before the Effective Date.

7.4 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or
affect the meaning or construction of any of the provisions hereof. The words
"hereof," "herein" and "hereunder" and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole, including without
limitation, all Schedules attached hereto, and not to any particular provision
of this Agreement. All references herein to Articles, Sections, and Schedules
shall, unless the context requires a different construction, be deemed to be
references to the Articles, Sections and Schedules of this Agreement,
respectively, and all such Schedules attached hereto are hereby incorporated
herein and made a part hereof for all purposes. All personal pronouns used in
this Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders, and the singular shall include the plural and vice
versa. The use herein of the word "including" following any general statement,
term or matter shall not be construed to limit such statement, term or matter to
the specific items or matters set forth immediately following such word or to
similar items or matters, whether or not non-limiting language (such as "without
limitation," "but not limited to," or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such
general statement, term or matter.

7.5 Successors and Assigns. The Agreement shall be binding upon and inure to the
benefit of the parties signatory hereto and their respective successors and
assigns.

7.6 No Third Party Rights. The provisions of this Agreement are intended to bind
the Parties signatory hereto as to each other and are not intended to and do not
create rights in any other person or confer upon any other person any benefits,
rights or remedies and no person is or is intended to be a third party
beneficiary of any of the provisions of this Agreement.

7.7 Counterparts. This Agreement may be executed in any number of counterparts,
all of which together shall constitute one agreement binding on the Parties
hereto.

7.8 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas applicable to contracts made and
to be performed wholly within such state without giving effect to conflict of
law principles thereof, except to the extent that it is mandatory that the law
of some other jurisdiction, wherein the Assets are located, shall apply.

7.9 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws
of any political body having jurisdiction over the subject matter hereof, such
contravention or invalidity shall not invalidate the entire Agreement. Instead,
this Agreement shall be construed as if it did not contain the particular
provision or provisions held to be invalid, and an equitable adjustment shall be
made and necessary provision added so as to give effect to the intention of the
Parties as expressed in this Agreement at the time of execution of this
Agreement.

                                      -23-

<PAGE>

7.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a "deed," "bill of sale" or
"assignment" of the Assets.

7.11 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties hereto and
affected thereby.

7.12 Integration. This Agreement and the instruments referenced herein supersede
all previous understandings or agreements among the Parties, whether oral or
written, with respect to its subject matter. This Agreement and such instruments
contain the entire understanding of the Parties with respect to the subject
matter hereof and thereof. No understanding, representation, promise or
agreement, whether oral or written, is intended to be or shall be included in or
form part of this Agreement unless it is contained in a written amendment hereto
executed by the parties hereto after the date of this Agreement.

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of the date first written above.

                                      -24-

<PAGE>

                                        MORIAH PROPERTIES, LTD.

                                        By: Moriah Resources, Inc.,
                                            its general partner

                                        By: /s/ Dale A. Brown
                                            ------------------------------------
                                        Name: Dale A. Brown
                                        Title: President

                                        DAB RESOURCES, LTD.

                                        By: DAB 1999 Corp., its general partner

                                        By: /s/ Dale A. Brown
                                            ------------------------------------
                                        Name: Dale A. Brown
                                        Title: President

                                        BROTHERS PRODUCTION PROPERTIES, LTD.

                                        By: Brothers Production Company, Inc.,
                                            its general partner

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

                                        BROTHERS PRODUCTION COMPANY, INC.

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

                                        BROTHERS OPERATING COMPANY, INC.

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

<PAGE>

                                        J&W MCGRAW PROPERTIES, LTD.

                                        By: Wanda J. McGraw Management, LLC,
                                            its general partner

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

                                        MBN PROPERTIES LP

                                        By: MBN Management, LLC,
                                            its general partner

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President

                                        H2K HOLDINGS, LTD.

                                        By: H2K Management, LLC,
                                            its general partner

                                        By: /s/ Paul T. Horne
                                            ------------------------------------
                                        Name: Paul T. Horne
                                        Title: President

                                        CHARITIES SUPPORT FOUNDATION, INC.

                                        By: /s/ Valerie Cornelius
                                            ------------------------------------
                                        Name: Valerie Cornelius
                                        Title: Treasurer

                                        MORIAH FOUNDATION

                                        By: /s/ Dale A. Brown
                                            ------------------------------------
                                        Name: Dale A. Brown
                                        Title: President

                                      -26-

<PAGE>

                                        CARY BROWN FAMILY FOUNDATION

                                        By: /s/ Cary D. Brown
                                            ------------------------------------
                                        Name: Cary D. Brown
                                        Title: President

                                        LEGACY RESERVES GP, LLC

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President, Chief Financial
                                               Officer and Secretary

                                        LEGACY RESERVES LP

                                        By: Legacy Reserves GP, LLC,
                                            its general partner

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President, Chief Financial
                                               Officer and Secretary

                                        LEGACY RESERVES OPERATING GP LLC

                                        By: Legacy Reserves LP, its sole member

                                        By: Legacy Reserves GP, LLC,
                                            its general partner

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                            Steven H. Pruett
                                            President, Chief Financial Officer
                                            and Secretary

                                      -27-

<PAGE>

                                        LEGACY RESERVES OPERATING LP

                                        By: Legacy Reserves Operating GP LLC,
                                            its general partner

                                        By: Legacy Reserves LP, its sole member

                                        By: Legacy Reserves GP, LLC,
                                            its general partner

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President, Chief Financial
                                               Officer and Secretary

                                      -28-<PAGE>

                                                                    Exhibit 10.3

                                OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT is entered into on, and effective as of, the Closing
Date, among MORIAH PROPERTIES, LTD., a Texas limited partnership ("Moriah"), DAB
RESOURCES, LTD., a Texas limited partnership ("DAB Resources"), BROTHERS
PRODUCTION PROPERTIES, LTD., a Texas limited partnership ("Brothers"), BROTHERS
PRODUCTION COMPANY, INC., a Texas corporation ("Brothers Production"), BROTHERS
OPERATING COMPANY, INC., a Texas corporation ("Brothers Operating"), J&W MCGRAW
PROPERTIES, LTD., a Texas limited partnership ("J&W Properties"), MBN PROPERTIES
LP, a Delaware limited partnership ("MBN Properties"), MBN MANAGEMENT, LLC, a
Delaware limited liability company ("MBN Management"), H2K HOLDINGS, LTD., a
Texas limited partnership ("H2K"), NEWSTONE GROUP PARTNERS, a Texas general
partnership ("Newstone Partners"), NEWSTONE CAPITAL, LP, a Texas limited
partnership ("Newstone"), BLACKSTONE INVESTMENTS I, LP, a Texas limited
partnership ("Blackstone I"), BLACKSTONE INVESTMENTS II, LP, a Texas limited
partnership ("Blackstone II"), TRINITY EQUITY PARTNERS I, LP, a Texas limited
partnership ("Trinity"), SHP CAPITAL LP, a Texas limited partnership ("SHP"),
LEGACY RESERVES LP, a Delaware limited partnership (the "Partnership"), and
LEGACY RESERVES GP, LLC, a Delaware limited liability company (the "General
Partner"), for itself and on behalf of the Partnership in its capacity as
general partner. The above-named entities are sometimes referred to in this
Agreement each as a "Party" and collectively as the "Parties."

                                    RECITALS:

     The Parties desire by their execution of this Agreement to evidence their
understanding and agreement with respect to certain matters relating to the
formation and governance of the General Partner and the Partnership as more
fully set forth in this Agreement.

     In consideration of the premises and the covenants, conditions, and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     1.1 DEFINITIONS.

     (a) Capitalized terms used herein but not defined shall have the meanings
given them in the Partnership Agreement.

     (b) As used in this Agreement, the following terms shall have the
respective meanings set forth below:

     "Agreement" means this Omnibus Agreement, as it may be amended, modified,
or supplemented from time to time in accordance with the terms hereof.

     "Base Units" means that number of Units issued to the Legacy Founders in
exchange for the contribution of the Legacy Founders Assets having an aggregate
value equal to the Base Value. For purposes hereof, the value of a Unit will be
equal to 93.5% of the Offering Price.

     "Base Value" means five (5) times the Initial Period Property Level Cash
Flow determined without regard to the Foundation Assets.

<PAGE>

     "Blackstone I" has the meaning given such term in the introduction to this
Agreement.

     "Blackstone II" has the meaning given such term in the introduction to this
Agreement.

     "Board" means the board of directors of the General Partner.

     "Brothers" has the meaning given such term in the introduction to this
Agreement.

     "Brothers Group" means Brothers, Brothers Production, Brothers Operating,
J&W Properties and each of their respective permitted transferees.

     "Brothers Founders" means Brothers Founders, Ltd., a Texas Limited
Partnership.

     "Brothers Operating" has the meaning given such term in the introduction to
this Agreement.

     "Brothers Production" has the meaning given such term in the introduction
to this Agreement.

     "Change of Control" means, with respect to any Person (the "Applicable
Person"), any of the following events: (i) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of the Applicable Person's assets to any other Person, unless
immediately following such sale, lease, exchange or other transfer such assets
are owned, directly or indirectly, by the Applicable Person; (ii) the
dissolution or liquidation of the Applicable Person; (iii) the consolidation or
merger of the Applicable Person with or into another Person pursuant to a
transaction in which the outstanding Voting Securities of the Applicable Person
are changed into or exchanged for cash, securities or other property, other than
any such transaction where (a) the outstanding Voting Securities of the
Applicable Person are changed into or exchanged for Voting Securities of the
surviving corporation or its parent and (b) the holders of the Voting Securities
of the Applicable Person immediately prior to such transaction own, directly or
indirectly, not less than a majority of the outstanding Voting Securities of the
surviving corporation or its parent immediately after such transaction; and (iv)
a "person" or "group" (within the meaning of Sections 13(d) or 14(d)(2) of the
Exchange Act) being or becoming the "beneficial owner" (as defined in Rules
13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the then
outstanding Voting Securities of the Applicable Person, except in a merger or
consolidation that would not constitute a Change of Control under clause (iii)
above.

     "Closing Date" means the date of the closing of the private placement of
Units.

     "Company Agreement" means the Amended and Restated Company Agreement of
Legacy Reserves GP, LLC

     "Conflicts Committee" has the meaning given such term in the Partnership
Agreement.

     "Contributing Parties" means the parties contributing assets to the
Partnership wholly or partially in exchange for Units as set forth in the
Contribution Agreement.

     "Contribution Agreement" is defined in Section 2.1.

                                      -2-

<PAGE>

     "DAB Resources" has the meaning given such term in the introduction to this
Agreement.

     "Director" means a member of the Board.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder.

     "FBR" means Friedman, Billings, Ramsey & Co., Inc.

     "Foundation Assets" means the assets acquired by the Partnership in
connection with the Offering from the Foundations.

     "Foundations" means Charities Support Foundation, Inc., Moriah Foundation,
Inc. and Cary Brown Family Foundation, Inc.

     "Founders Assets" has the meaning given to such term in the Contribution
Agreement.

     "Founders Indemnification Obligation" has the meaning given such term in
Section 6.2.

     "Founding Investor" has the meaning given to such term in the Partnership
Agreement.

     "General Partner" has the meaning given such term in the introduction to
this Agreement.

     "H2K" has the meaning given such term in the introduction to this
Agreement.

     "Independent Director" shall have the meaning ascribed to such term in NASD
Rule 4200(a)(15).

     "Initial Period Property Level Cash Flow" means the 12 month pro forma
amount of property level cash flow from the Legacy Founder Assets and the
Foundation Assets as determined in the projections, based on the LaRoche
Petroleum Consultants proved developed producing reserve report used in the
Offering Memorandum.

     "J&W Properties" has the meaning given such term in the introduction to
this Agreement.

     "Legacy Founders" means those Persons actually contributing properties to
the Partnership in connection with the Offering, but excluding MBN Properties.

     "Legacy Founders Assets" means the properties contributed to the
Partnership by the Legacy Founders.

     "Limited Partners" means limited partners of the Partnership.

     "LTIP" means the Legacy Reserves LP Long-Term Incentive Plan to be adopted
by the Partnership on the Closing Date.

     "Marketing Materials" has the meaning given to such term in the
Purchase/Placement Agreement.

                                      -3-

<PAGE>

     "Market Value" means, when used with respect to the Units referred to in
Section 4.1(b), the product of (i) the number of such Units multiplied by (ii)
the Offering Price per Unit.

     "MBN Management" has the meaning given such term in the introduction to
this Agreement.

     "MBN Properties" has the meaning given such term in the introduction to
this Agreement.

     "Member" has the meaning given such term in Section 5.1.

     "Moriah" has the meaning given such term in the introduction to this
Agreement.

     "Moriah Group" means Moriah, DAB Resources and each of their respective
permitted transferees.

     "Moriah Founders" means Moriah Founders, Ltd., a Texas limited Partnership.

     "Newstone Group" means Newstone, Newstone Partners, Blackstone I,
Blackstone II, Trinity, SHP and each of their respective permitted transferees.

     "Newstone Member" means a member of the Newstone Group.

     "Newstone Partners" has the meaning given such term in the introduction to
this Agreement.

     "Offering" means the offering of Units by the Partnership pursuant to the
Offering Memorandum.

     "Offering Memorandum" means the Offering Memorandum of the Partnership,
dated March 6, 2006, relating to the offer and sale of up to 5,250,000 Units.

     "Offering Price" means the gross price at which a Unit is sold in the
Offering.

     "Operating Partnership" means Legacy Reserves Operating LP, a Delaware
limited partnership, and any successors thereto.

     "Operating Partnership Agreement" means the Limited Partnership Agreement
of the Operating Partnership, as it may be amended, supplemented or restated
from time to time.

     "Operating Partnership GP" means Legacy Reserves Operating GP LLC, a
Delaware limited liability company, and any successors thereto.

     "Partnership" has the meaning given such term in the introduction to this
Agreement.

     "Partnership Agreement" means the Amended and Restated Agreement of Limited
Partnership of the Partnership, dated as of the Closing Date, as such agreement
is in effect on the Closing Date, to which reference is hereby made for all
purposes of this Agreement. An amendment or modification to the Partnership
Agreement subsequent to the Closing Date shall be given effect for the purposes
of this Agreement only if it has received the approval of the Conflicts
Committee that would be required, if any, pursuant to Section 7.5 hereof if such
amendment or modification were an amendment or modification of this Agreement.

                                      -4-

<PAGE>

     "Partnership Entities" means the General Partner and each member of the
Partnership Group.

     "Partnership Group" means the Partnership, the Operating Partnership and
the Operating Partnership GP.

     "Person" means an individual, corporation, partnership, joint venture,
trust, limited liability company, unincorporated organization or any other
entity.

     "Phantom Units" has the meaning given such term in Section 2.2(c).

     "Primary Units" means Units issued directly by the Partnership in exchange
for cash contributions made in connection with the closing of the Offering.

     "Projected Distributed Cash" means the estimated total cash to be
distributed to holders of Units over the initial 12 month period as set forth in
the Offering Memorandum.

     "Purchase/Placement Agreement" means the Purchase/Placement Agreement dated
March 6, 2006, by and among FBR, the Partnership and the other parties thereto.

     "PV-10 Value" means the value of the Founders Assets based on total proved
reserves as set forth in the engineering report prepared by LaRoche Petroleum
Consultants, Ltd. for the period ended as of September 30, 2005.

     "Reimbursement Ratio" means, with respect to any Founding Investor holding
Units, the percentage that such Units bears to the number of Units equal to
Total Units minus the Restricted Units.

     "Residual Units" means all Units other than (i) Primary Units and (ii)
Restricted Units.

     "Restricted Units" means 52,616 Units to be issued to members of management
or other employees of the Partnership or its affiliates under the LTIP in
connection with the closing of the Offering.

     "SHP" has the meaning given such term in the introduction to this Agreement

     "Total Units" has the meaning given such term in Section 2.2(a).

     "Trinity" has the meaning given such term in the introduction to this
Agreement.

     "Unit" has the meaning given such term in the Partnership Agreement.

     "Voting Securities" means securities of any class of a Person entitling the
holders thereof to vote in the election of, or to appoint, members of the board
of directors or other similar governing body of the Person.

                                    ARTICLE 2
                    CONTRIBUTION AGREEMENT; ISSUANCE OF UNITS

     2.1 CONTRIBUTION AGREEMENT. Subject to the consummation of the Offering,
each of the Parties agrees to enter into, the Contribution, Conveyance and
Assumption Agreement among the General Partner, the Partnership, the Operating
Partnership GP, the Operating

                                      -5-

<PAGE>

Partnership and the other parties named therein, substantially in the form
attached hereto as Exhibit A (the "Contribution Agreement"), with the number of
Units to be issued to each Contributing Party thereunder to be determined as set
forth below.

     2.2 DETERMINATION OF TOTAL UNITS AND ALLOCATION OF UNITS AMONG CONTRIBUTING
PARTIES. The following procedure will be used for purposes of determining the
number of Units to be issued to each Contributing Party.

     (a) On the Closing Date, the number of total Units to be issued by the
Partnership upon the closing of the Offering ("Total Units") will be determined
and will be equal to the result of (i) Projected Distributed Cash divided by
(ii) the projected per Unit distributions to be paid annually, in each case as
set forth in the Offering Memorandum.

     (b) Residual Units will then be determined and will be equal to the
difference between (i) Total Units minus (ii) the sum of (A) the Primary Units
and (B) the Restricted Units.

     (c) For purposes of determining the number of Residual Units to be issued
to each Contributing Party, Residual Units will be tentatively increased by a
number of phantom Units ("Phantom Units") equal to the result of (i) the total
cash being paid to MBN Properties for its properties pursuant to the
Contribution Agreement (equal to the total amount of third party and
subordinated debt owed by MBN Properties) divided by (ii) the Offering Price per
Unit. This tentative number of Units will then be apportioned among the
Contributing Parties in proportion to the PV-10 Value of the Founders Assets
being contributed by each Contributing Party. The number of Residual Units to be
issued to each Contributing Party will be the number of Units apportioned as
provided in the previous sentence, except that in the case of MBN Properties,
the number of Units determined for it will be reduced by the number of Phantom
Units.

                                    ARTICLE 3
                     FOUNDERS REGISTRATION RIGHTS AGREEMENT

     Subject to the consummation of the Offering, each of the Parties agrees to
enter into, the Founders Registration Rights Agreement substantially in the form
attached hereto as Exhibit B.

                                    ARTICLE 4
                        RESTRICTIONS ON TRANSFER OF UNITS

     4.1 RESTRICTIONS ON TRANSFER OF UNITS. Notwithstanding the other provisions
of this Agreement, each Newstone Member agrees to hold fifty percent (50%) of
the total Units owned by it immediately following the closing of the Offering
for not less than 30 months following such Closing Date; provided, that, prior
to the expiration of such 30 month period:

     (a) if any of Cary D. Brown, Dale A. Brown, Kyle A. McGraw or their
respective affiliates, sell all or any portion of their Units in excess of that
number of Units equal to the Base Units attributable to them, each Newstone
Member may sell all or a portion of its Units in the same proportion without
regard to the fifty percent (50%) limitation on transfer;

     (b) each Newstone Member may dispose of a portion of its Units provided
that at the time of such disposition it retains ownership of Units having an
aggregate fair market value at such time of not less than fifty percent (50%) of
the Market Value of the Units owned by it as of the Closing Date;

                                      -6-

<PAGE>

     (c) if a representative of the Newstone Group is removed from the Board or
the other representative(s) on the Board accept the resignation of the Newstone
Group representative from the Board, the Newstone Members will be free to
dispose of all of such Units; and

     (d) notwithstanding the foregoing, each Newstone Member will be entitled to
margin or otherwise pledge all Units held by it.

     With respect to the remaining fifty percent (50%) of the Units held by each
Newstone Member, such Units will be freely transferable, subject only to
applicable securities laws restrictions or any agreement with any underwriter
restricting transfer of such Units.

     The provisions of this Article 4 shall terminate upon a Change of Control
of the General Partner or the Partnership.

                                    ARTICLE 5
                     VOTING OF INTERESTS IN GENERAL PARTNER

     5.1 ELECTION OF DIRECTORS. Until the occurrence of an Initial Public
Offering (as such term is defined in the Partnership Agreement), each Party
hereto that holds an interest in the General Partner ("Member") agrees on behalf
of itself and any transferee or assignee of any such interests that it will vote
all of such interests for the election of Directors as follows:

     (a) For the election of two individuals as designated by the Moriah Group;

     (b) For the election of one individual designated by the Brothers Group;
and

     (c) For the election of one individual designated by the Newstone Group.

     The parties hereto agree that the initial Directors will be as set forth in
the Company Agreement.

     All remaining Directors to be elected by the Members will be Independent
Directors. To the extent that the total number of Directors to be elected by the
Members are less than four (4), the Moriah Group and the Brothers Group will
collectively be entitled to designate 2/3 of such number of Directors and the
Newstone Group will be entitled to designate 1/3 of such number of Directors, in
each case rounded down to the nearest whole number of Directors.

     A group's right to designate an individual will terminate at such time as
no members of such group existing on the date hereof hold any Units.

                                   ARTICLE 6
                            REIMBURSEMENT OF EXPENSES

     6.1 FORMATION EXPENSES

     Pursuant to the Partnership Agreement, the General Partner is entitled to
be reimbursed for all direct and indirect expenses it incurs or payments it
makes on behalf of the Partnership Group. In anticipation of the formation of
the Partnership, the parties agreed to fund expenses relating to such formation
through MBN Management on the condition that the Partnership agree to reimburse
MBN Management for such expenses upon formation. Accordingly, the Partnership
hereby agrees to reimburse MBN Management promptly following closing of the

                                      -7-

<PAGE>

Offering for all expenses it has incurred in connection with the formation of
the Partnership and the Offering in the same manner and to the same extent as if
incurred by the General Partner.

     6.2 FOUNDERS INDEMNIFICATION OBLIGATION EXPENSES

     Pursuant to the Sections 7(b) and 7(h) of the Purchase/Placement Agreement,
Moriah Founders and Brothers Founders, jointly and severally, agree to indemnify
FBR and its affiliates, and other related Persons for certain losses, expenses,
liabilities or claims that arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact contained in the Offering
Memorandum or Marketing Materials for a period of six months form the Closing
Date (the "Founders Indemnification Obligation") with the Indemnification
Obligation limited to $17,000,000 and subject to a deductible of $5,000,000.
Each of the Parties agrees to reimburse Moriah Founders and Brothers Founders
for any payments made by either of them pursuant to the Founders Indemnification
Obligation in an amount such that the aggregate amount paid by each Party
hereunder with respect to the Founders Indemnification Obligation is in
proportion to such Party's Reimbursement Ratio multiplied by the total amounts
paid by all parties with respect to the Founders Indemnification Obligations.
The Parties agree to cause any transferee of Units who constitutes a Founding
Investor but is not a Party to this Agreement to assume the obligations set
forth in this Section 6.2

                                    ARTICLE 7
                                  MISCELLANEOUS

     7.1 CHOICE OF LAW; SUBMISSION TO JURISDICTION. This Agreement shall be
subject to and governed by the laws of the State of Texas, excluding any
conflicts-of-law rule or principle that might refer the construction or
interpretation of this Agreement to the laws of another state. Each Party hereby
submits to the jurisdiction of the state and federal courts in the State of
Texas and to venue in Texas.

     7.2 NOTICE. All notices or requests or consents provided for or permitted
to be given pursuant to this Agreement must be in writing and must be given by
depositing same in the United States mail, addressed to the Person to be
notified, postpaid, and registered or certified with return receipt requested or
by delivering such notice in person or by telecopier or telegram to such Party.
Notice given by personal delivery or mail shall be effective upon actual
receipt. Notice given by telegram or telecopier shall be effective upon actual
receipt if received during the recipient's normal business hours, or at the
beginning of the recipient's next business day after receipt if not received
during the recipient's normal business hours. All notices to be sent to a Party
pursuant to this Agreement shall be sent to the address set forth below such
Party's name on the signature page hereto.

     7.3 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of
the Parties relating to the matters contained herein, superseding all prior
contracts or agreements, whether oral or written, relating to the matters
contained herein.

     7.4 EFFECT OF WAIVER OR CONSENT. No waiver or consent, express or implied,
by any Party to or of any breach or default by any Person in the performance by
such Person of its obligations hereunder shall be deemed or construed to be a
consent or waiver to or of any other breach or default in the performance by
such Person of the same or any other obligations of such Person hereunder.
Failure on the part of a Party to complain of any act of any Person or to
declare any Person in default, irrespective of how long such failure continues,
shall not

                                      -8-

<PAGE>

constitute a waiver by such Party of its rights hereunder until the applicable
statute of limitations period has run.

     7.5 AMENDMENT OR MODIFICATION. This Agreement may be amended or modified
from time to time only by the written agreement of all the Parties; provided,
however, that the Partnership may not, without the prior approval of the
Conflicts Committee, agree to any amendment or modification of this Agreement
that, in the reasonable discretion of the General Partner, will adversely affect
the holders of Units. Each such instrument shall be reduced to writing and shall
be designated on its face an "Amendment" or an "Addendum" to this Agreement.

     7.6 ASSIGNMENT; THIRD PARTY BENEFICIARIES. Except as otherwise provided
herein, no Party shall have the right to assign its rights or obligations under
this Agreement without the consent of the other Parties. Each of the Parties
hereto specifically intends that each entity comprising the Limited Partners,
the Partnership Entities or the Newstone Group, as applicable, whether or not a
Party to this Agreement, shall be entitled to assert rights and remedies
hereunder as third-party beneficiaries hereto with respect to those provisions
of this Agreement affording a right, benefit or privilege to any such entity.

     7.7 COUNTERPARTS. This Agreement may be executed in any number of
counterparts with the same effect as if all signatory Parties had signed the
same document. All counterparts shall be construed together and shall constitute
one and the same instrument.

     7.8 SEVERABILITY. If any provision of this Agreement or the application
thereof to any Person or circumstance shall be held invalid or unenforceable to
any extent, the remainder of this Agreement and the application of such
provision to other Persons or circumstances shall not be affected thereby and
shall be enforced to the greatest extent permitted by law.

     7.9 GENDER, PARTS, ARTICLES AND SECTIONS. Whenever the context requires,
the gender of all words used in this Agreement shall include the masculine,
feminine and neuter, and the number of all words shall include the singular and
plural. All references to Article numbers and Section numbers refer to Articles
and Sections of this Agreement.

     7.10 FURTHER ASSURANCES. In connection with this Agreement and all
transactions contemplated by this Agreement, each Party agrees to execute and
deliver such additional documents and instruments and to perform such additional
acts as may be necessary or appropriate to effectuate, carry out and perform all
of the terms, provisions and conditions of this Agreement and all such
transactions.

     7.11 WITHHOLDING OR GRANTING OF CONSENT. Each Party may, with respect to
any consent or approval that it is entitled to grant pursuant to this Agreement,
grant or withhold such consent or approval in its sole and uncontrolled
discretion, with or without cause, and subject to such conditions as it shall
deem appropriate.

     7.12 LAWS AND REGULATIONS. Notwithstanding any provision of this Agreement
to the contrary, no Party shall be required to take any act, or fail to take any
act, under this Agreement if the effect thereof would be to cause such Party to
be in violation of any applicable law, statute, rule or regulation.

                                      -9-

<PAGE>

     7.13 NO RECOURSE AGAINST OFFICERS OR DIRECTORS. For the avoidance of doubt,
the provisions of this Agreement shall not give rise to any right of recourse
against any officer or director of any Limited Partner, Newstone Member or any
Partnership Entity.

                            [SIGNATURE PAGES FOLLOW]

                                      -10-

<PAGE>

     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and
effective as of, the Closing Date.

                                        MORIAH PROPERTIES, LTD.

                                        By: Moriah Resources, Inc.,
                                            its general partner

                                        By: /s/ Dale A. Brown
                                            ------------------------------------
                                        Name: Dale A. Brown
                                        Title: President

                                        Address for notice:

                                        303 W. Wall Street, Suite 1500
                                        Midland, Texas 79701

                                        DAB RESOURCES, LTD.

                                        By: DAB 1999 Corp., its general partner

                                        By: /s/ Dale A. Brown
                                            ------------------------------------
                                        Name: Dale A. Brown
                                        Title: President

                                        Address for notice:

                                        303 W. Wall Street, Suite 1500
                                        Midland, Texas 79701

                                        BROTHERS PRODUCTION PROPERTIES, LTD.

                                        By: Brothers Production Company, Inc.,
                                            its general partner

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                      -11-

<PAGE>
                                        BROTHERS PRODUCTION COMPANY, INC.

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                        BROTHERS OPERATING COMPANY, INC.

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                        J&W MCGRAW PROPERTIES, LTD.

                                        By: Wanda J. McGraw Management, LLC,
                                            its general partner

                                        By: /s/ Kyle A. McGraw
                                            ------------------------------------
                                        Name: Kyle A. McGraw
                                        Title: President

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                        MBN PROPERTIES LP

                                        By: MBN Management, LLC,
                                            its general partner

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President and Chief
                                               Financial Officer

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                      -12-

<PAGE>

                                        MBN MANAGEMENT, LLC

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President and Chief
                                               Financial Officer

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                        H2K HOLDINGS, LTD.

                                        By: H2K Management, LLC,
                                            its general partner

                                        By: /s/ Paul T. Horne
                                            ------------------------------------
                                        Name: Paul T. Horne
                                        Title: President

                                        Address for notice:

                                        303 W. Wall Street, Suite 1500
                                        Midland, Texas 79701

                                        NEWSTONE GROUP PARTNERS

                                        By: Newstone Capital, LP
                                            its managing general partner

                                        By: T&W Management, LLC
                                            its general partner

                                        By: /s/ S. Wil VanLoh, Jr.
                                            ------------------------------------
                                            S. Wil VanLoh, Jr., President

                                        NEWSTONE CAPITAL, LP

                                        By: T&W Management, LLC,
                                            its general partner

                                        By: /s/ S. Wil VanLoh, Jr.
                                            ------------------------------------
                                        Name: S. Wil VanLoh, Jr.
                                        Title: President

                                        Address for notice:

                                        777 Walker, Suite 2530
                                        Houston, Texas 77002

                                      -13-

<PAGE>
                                        BLACKSTONE INVESTMENTS I, LP

                                        By: Skytop Holdings, LLC,
                                            its general partner

                                        By: /s/ Toby R. Neugebauer
                                            ------------------------------------
                                        Name: Toby R. Neugebauer
                                        Title: President

                                        Address for notice:

                                        2106 Vicksburg Ave.
                                        Lubbock, Texas 79407

                                        BLACKSTONE INVESTMENTS II, LP

                                        By: Skytop Holdings, LLC,
                                            its general partner

                                        By: /s/ Toby R. Neugebauer
                                            ------------------------------------
                                        Name: Toby R. Neugebauer
                                        Title: President

                                        Address for notice:

                                        2106 Vicksburg Ave.
                                        Lubbock, Texas 79407

                                        TRINITY CAPITAL PARTNERS I, LP

                                        By: Trinity Equity Holdings, LLC,
                                            its general partner

                                        By: /s/ S. Wil VanLoh, Jr.
                                            ------------------------------------
                                        Name: S. Wil VanLoh, Jr.
                                        Title: President

                                        Address for notice:

                                        777 Walker, Suite 2530
                                        Houston, Texas 77002

                                      -14-

<PAGE>
                                        SHP CAPITAL LP

                                        By: SHP Capital Management, LLC,
                                            its general partner

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President

                                        Address for notice:

                                        2727 Carolina Way
                                        Houston, Texas 77005

                                        LEGACY RESERVES GP, LLC

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President, Chief Financial
                                               Officer and Secretary

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                        LEGACY RESERVES LP

                                        By: Legacy Reserves GP, LLC,
                                            its general partner

                                        By: /s/ Steven H. Pruett
                                            ------------------------------------
                                        Name: Steven H. Pruett
                                        Title: President, Chief Financial
                                               Officer and Secretary

                                        Address for notice:

                                        303 W. Wall Street, Suite 1600
                                        Midland, Texas 79701

                                      -15-

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