Document:

Exhibit
10.2

 

REGISTRATION RIGHTS
AGREEMENT

BY AND AMONG

LINN ENERGY, LLC

AND

THE PURCHASERS NAMED
HEREIN

Table of Contents

	
  

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  2

  
	
  Section 1.01

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
  Section 1.02

  	
   

  	
  Registrable Securities

  	
   

  	
  3

  
	
  ARTICLE II REGISTRATION RIGHTS

  	
   

  	
  3

  
	
  Section 2.01

  	
   

  	
  Registration

  	
   

  	
  3

  
	
  Section 2.02

  	
   

  	
  Piggyback Rights

  	
   

  	
  6

  
	
  Section 2.03

  	
   

  	
  Underwritten Offering

  	
   

  	
  7

  
	
  Section 2.04

  	
   

  	
  Sale Procedures

  	
   

  	
  8

  
	
  Section 2.05

  	
   

  	
  Cooperation by Holders

  	
   

  	
  12

  
	
  Section 2.06

  	
   

  	
  Restrictions on Public Sale by Holders of
  Registrable Securities

  	
   

  	
  12

  
	
  Section 2.07

  	
   

  	
  Expenses

  	
   

  	
  12

  
	
  Section 2.08

  	
   

  	
  Indemnification

  	
   

  	
  13

  
	
  Section 2.09

  	
   

  	
  Rule 144 Reporting

  	
   

  	
  15

  
	
  Section 2.10

  	
   

  	
  Transfer or Assignment of Registration Rights

  	
   

  	
  15

  
	
  Section 2.11

  	
   

  	
  Limitation on Subsequent Registration Rights

  	
   

  	
  16

  
	
  ARTICLE III MISCELLANEOUS

  	
   

  	
  16

  
	
  Section 3.01

  	
   

  	
  Communications

  	
   

  	
  16

  
	
  Section 3.02

  	
   

  	
  Successor and Assigns

  	
   

  	
  16

  
	
  Section 3.03

  	
   

  	
  Aggregation of Purchased Class C Units and Purchased
  Units

  	
   

  	
  16

  
	
  Section 3.04

  	
   

  	
  Recapitalization, Exchanges, Etc. Affecting the
  Units

  	
   

  	
  16

  
	
  Section 3.05

  	
   

  	
  Specific Performance

  	
   

  	
  17

  
	
  Section 3.06

  	
   

  	
  Counterparts

  	
   

  	
  17

  
	
  Section 3.07

  	
   

  	
  Headings

  	
   

  	
  17

  
	
  Section 3.08

  	
   

  	
  Governing Law

  	
   

  	
  17

  
	
  Section 3.09

  	
   

  	
  Severability of Provisions

  	
   

  	
  17

  
	
  Section 3.10

  	
   

  	
  Entire Agreement

  	
   

  	
  17

  
	
  Section 3.11

  	
   

  	
  Amendment

  	
   

  	
  17

  
	
  Section 3.12

  	
   

  	
  No Presumption

  	
   

  	
  17

  
	
  Section 3.13

  	
   

  	
  Obligations Limited to Parties to Agreement

  	
   

  	
  17

  

 

 i

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of February 1,
2007 by and among Linn Energy, LLC, a Delaware limited liability company (“Linn”),
and ZLP Fund, L.P.,
Structured Finance Americas LLC, Royal Bank of Canada by its agent RBC Capital
Markets Corporation, Credit Suisse Management LLC, GPS Partners LLC, Del Mar
Onshore Partners LP, Lehman Brothers MLP Partners, L.P., Brahman Capital Corp.,
on behalf of certain funds and accounts it manages, Citigroup Global Markets
Inc., Goldman, Sachs & Co., on behalf of its Principal Strategies Group,
Alerian Opportunity Partners V L.P., RCH Energy MLP Fund, L.P., RCH Energy MLP
Fund A, L.P., RCH Energy Opportunity Fund I, L.P., Energy Income and Growth
Fund, Fiduciary/Claymore MLP Opportunity Fund, Jennison Utility Fund, Reservoir
Master Fund, L.P., Shaar Fund LTD, Arbiter Partners, L.P., Diaco Investments,
LP, Black Diamond Offshore Ltd., Double Black Diamond Offshore LDC, Calm Waters
Partnership, Gracie Capital, LP, Gracie Capital, LP II, Gracie Capital Intl,
Ltd, Gracie Capital Intl, Ltd II, Guggenheim Portfolio Company XLII, LLC, Hartz
Capital MLP, LLC, UBS AG, Strome MLP Fund, LP, Howard L. Terry, Tracy W. Krohn,
Locust Wood Capital, LP and Portcullis Partners, L.P. (each of ZLP Fund, L.P., Structured Finance
Americas LLC, Royal Bank of Canada by its agent RBC Capital Markets
Corporation, Credit Suisse Management LLC, GPS Partners LLC, Del Mar Onshore
Partners LP, Lehman Brothers MLP Partners, L.P., Brahman Capital Corp., on
behalf of certain funds and accounts it manages, Citigroup Global Markets Inc.,
Goldman, Sachs & Co., on behalf of its Principal Strategies Group, Alerian
Opportunity Partners V L.P., RCH Energy MLP Fund, L.P., RCH Energy MLP Fund A,
L.P., RCH Energy Opportunity Fund I, L.P., Energy Income and Growth Fund,
Fiduciary/Claymore MLP Opportunity Fund, Jennison Utility Fund, Reservoir
Master Fund, L.P., Shaar Fund LTD, Arbiter Partners, L.P., Diaco Investments,
LP, Black Diamond Offshore Ltd., Double Black Diamond Offshore LDC, Calm Waters
Partnership, Gracie Capital, LP, Gracie Capital, LP II, Gracie Capital Intl,
Ltd, Gracie Capital Intl, Ltd II, Guggenheim Portfolio Company XLII, LLC, Hartz
Capital MLP, LLC, UBS AG, Strome MLP Fund, LP, Howard L. Terry, Tracy W. Krohn,
Locust Wood Capital, LP and Portcullis Partners, L.P., a “Purchaser”
and, collectively, the “Purchasers”).

WHEREAS, this Agreement
is made in connection with the Closing of the issuance and sale of the
Purchased Class C Units and the Purchased Units pursuant to the Class C Unit
and Unit Purchase Agreement, dated as of December 13, 2006, by and among Linn
and the Purchasers (the “Purchase Agreement”);

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

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

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

 

ARTICLE I

DEFINITIONS

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

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

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

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

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

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

“Liquidated Damages
Multiplier” means (i) the product of $25.06 times the number of Class C
Units purchased by such Purchaser plus (ii) the product of $26.00 times the
number of Units purchased by such Purchaser.

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

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

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

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

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

“Placement Agent”
means Lehman Brothers Inc., Citigroup Global Markets Inc., RBC Capital Markets
Corporation or Jefferies & Company, Inc.

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

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

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

 2
 

 

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

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

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

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

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

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

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

ARTICLE II

REGISTRATION RIGHTS

Section 2.01           Registration.

(a)           Registration.

(i)            Deadline To Go Effective.  As soon as practicable following the Closing,
but in any event within 75 days of the Closing Date, Linn shall prepare and
file a registration statement under the Securities Act to permit the resale of
the Registrable Securities from time to time, including as permitted by Rule
415 under the Securities Act (or any similar provision then in force) under the
Act with respect to all of the Registrable Securities (the “Registration Statement”).  Linn shall use its commercially reasonable
efforts to cause the 

 3
 

Registration
Statement to become effective no later than 90 days following the Closing
Date.  A Registration Statement filed
pursuant to this Section 2.01 shall be on such appropriate registration form of
the Commission as shall be selected by Linn. 
Linn will use its commercially reasonable efforts to cause the
Registration Statement filed pursuant to this Section 2.01 to be continuously
effective under the Securities Act until the earlier of (i) the date as of
which all such Registrable Securities are sold by the Purchasers or (ii) the
date when such Registrable Securities become eligible for resale under Rule
144(k) (or any similar provision then in force) under the Securities Act (the “Effectiveness
Period”).  The Registration Statement
when declared effective (including the documents incorporated therein by
reference) shall comply as to form with all applicable requirements of the
Securities Act and the Exchange Act and shall not contain an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading.

(ii)           Failure To Go Effective.  If the Registration Statement required by
Section 2.01 of this Agreement is not declared effective within 165 days after
the Closing Date, then each Purchaser shall be entitled to a payment with
respect to the Purchased Class C Units and the Purchased Units of each such
Purchaser, as liquidated damages and not as a penalty, of 0.25% of the
Liquidated Damages Multiplier per 30-day period for the first 90 days following
the 165th day after the Closing Date, increasing by an additional 0.25% of the
Liquidated Damages Multiplier per 30-day period for each subsequent 30 days, up
to a maximum of 1.00% of the Liquidated Damages Multiplier per 30-day period
(the “Liquidated Damages”). 
Initially there shall be no limitation on the aggregate amount of the
Liquidated Damages payable by Linn under this Agreement to each Purchaser; provided, however, that if there is a change in the Law or
accounting principles generally accepted in the United States that would result
in the Purchased Units being treated as debt securities instead of equity
securities for purposes of Linn’s financial statements, then the aggregate
amount of the Liquidated Damages payable by Linn under this Agreement to each
Purchaser shall not exceed the maximum amount of the Liquidated Damages
Multiplier with respect to such Purchaser allowed for the Purchased Units not
to be treated as debt securities for purposes of Linn’s financial
statements.  The Liquidated Damages
payable pursuant to the immediately preceding sentence shall be payable within
ten Business Days of the end of each such 30-day period.  Any Liquidated Damages shall be paid to each
Purchaser in cash or immediately available funds; provided,
however, if Linn certifies that it is
unable to pay Liquidated Damages in cash or immediately available funds because
such payment would result in a breach under any of Linn’s or Linn’s
Subsidiaries’ credit facilities or other indebtedness filed as exhibits to the
Linn SEC Documents, then Linn may pay the Liquidated Damages in kind in the
form of the issuance of additional (A) Units or (B) Units and Class C
Units.  Class C Units may only be issued
as Liquidated Damages if and to the extent required by The Nasdaq Global Market
or similar regulation.  If Class C Units
are issued as Liquidated Damages as a result of a requirement by The Nasdaq
Global Market or similar regulation, then such Units and/or Class C Units will
be issued to each Purchaser in such a manner as to maximize the number of Units
issued to each such Purchaser.  Upon any
issuance of Units and/or Class C Units as Liquidated Damages, Linn shall
promptly prepare and file an amendment to the Registration Statement prior to
its effectiveness adding such Units and/or Units issuable upon conversion of
Class C Units to such Registration Statement as additional Registrable
Securities.  The determination of the
number of Units to be issued as Liquidated Damages shall be equal to the amount
of Liquidated Damages divided by the volume weighted 

 4
 

average closing
price of the Units (as reported by The Nasdaq Global Market) for the ten (10)
trading days immediately preceding the date on which the Liquidated Damages
payment is due.  The determination of the
number of Class C Units to be issued as Liquidated Damages shall be equal to
the amount of Liquidated Damages divided by the volume weighted average closing
price of the Units (as reported by The Nasdaq Global Market) for the ten (10)
trading days immediately preceding the date on which the Liquidated Damages
payment is due, less a discount of 2%. 
The payment of Liquidated Damages to a Purchaser shall cease at such
time as the Purchased Class C Units and the Purchased Units of such Purchaser
become eligible for resale under Rule 144(k) under the Securities Act.  As soon as practicable following the date that the Registration
Statement becomes effective, but in any event within two Business Days of such
date, Linn shall provide the Purchasers with written notice of the
effectiveness of the Registration Statement.

(iii)          Waiver of Liquidated
Damages.  If Linn is
unable to cause a Registration Statement to go effective within 165 days
following the Closing Date as a result of an acquisition, merger,
reorganization, disposition or other similar transaction, then Linn may request
a waiver of the Liquidated Damages, which may be granted or withheld by the
consent of the Holders of a majority of the Purchased Class C Units and the
Purchased Units, taken as a whole, in their sole discretion.  A Purchaser’s rights (and any transferee’s
rights pursuant to Section 2.10 of this Agreement) under this Section 2.01
shall terminate upon the earlier of (i) when all such Registrable Securities
are sold by such Purchaser or transferee, as applicable, and (ii) when such
Registrable Securities become eligible for resale under Rule 144(k) (or any
similar provision then in force) under the Securities Act.

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

(c)           Additional Rights to Liquidated
Damages.  If (i) the Holders shall be
prohibited from selling their Registrable Securities under the Registration
Statement as a result of a suspension pursuant to Section 2.01(b) of this
Agreement in excess of the periods permitted therein or (ii) the Registration
Statement is filed and declared effective but, during the Effectiveness Period,
shall thereafter cease to be effective or fail to be usable for its intended 

 5
 

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

Section 2.02           Piggyback Rights.

(a)           Participation.  If at any time Linn proposes to file (i) a
prospectus supplement to an effective shelf registration statement, other than
the Registration Statement contemplated by Section 2.01 of this Agreement, or
(ii) a registration statement, other than a shelf registration statement, in
either case, for the sale of Units in an Underwritten Offering for its own
account and/or another Person, then as soon as practicable but not less than
three Business Days prior to the filing of (x) any preliminary prospectus
supplement relating to such Underwritten Offering pursuant to Rule 424(b) under
the Securities Act, (y) the prospectus supplement relating to such Underwritten
Offering pursuant to Rule 424(b) under the Securities Act (if no preliminary
prospectus supplement is used) or (z) such registration statement, as the case
may be, then Linn shall give notice (including, but not limited to,
notification by electronic mail) of such proposed Underwritten Offering to the
Holders and such notice shall offer the Holders the opportunity to include in
such Underwritten Offering such number of Registrable Securities (the “Included
Registrable Securities”) as each such Holder may request in writing; provided, however, that
if Linn has been advised by the Managing Underwriter that the inclusion of
Registrable Securities for sale for the benefit of the Holders will have a
material adverse effect on the price, timing or distribution of the Units in
the Underwritten Offering, then the amount of Registrable Securities to be
offered for the accounts of Holders shall be determined based on the provisions
of Section 2.02(b) of this Agreement. 
The notice required to be provided in this Section 2.02(a) to Holders
shall be provided on a Business Day pursuant to Section 3.01 hereof and receipt
of such notice shall be confirmed by such Holder.  Each such Holder shall then have three
Business Days after receiving such notice to request inclusion of Registrable
Securities in the Underwritten Offering, except that such Holder shall have one
Business Day after such Holder confirms receipt of the notice to request
inclusion of Registrable Securities in the Underwritten Offering in the case of
a “bought deal” or “overnight transaction” where no preliminary prospectus is
used.  If no request for inclusion from a
Holder is received within the specified time, such Holder shall have no further
right to participate in such Underwritten Offering.  If, at any time after giving written notice
of its intention to undertake an Underwritten Offering and prior to the closing
of such Underwritten Offering, Linn shall determine for any reason not to
undertake or to delay such Underwritten Offering, Linn may, at its election,
give written notice of such determination to the Selling Holders and, (x) in
the case of a determination not to undertake such Underwritten Offering, shall
be relieved of its obligation to sell any 

 6
 

Included
Registrable Securities in connection with such terminated Underwritten
Offering, and (y) in the case of a determination to delay such Underwritten
Offering, shall be permitted to delay offering any Included Registrable
Securities for the same period as the delay in the Underwritten Offering.  Any Selling Holder shall have the right to
withdraw such Selling Holder’s request for inclusion of such Selling Holder’s
Registrable Securities in such offering by giving written notice to Linn of
such withdrawal up to and including the time of pricing of such offering.  Each Holder’s rights under this Section
2.02(a) shall terminate when such Holder (together with any Affiliates of such
Holder) holds less than $10,000,000 of Purchased Class C Units (or Units issued
upon conversion of the Class C Units) and Purchased Units, based on the
Commitment Amounts.  Notwithstanding the
foregoing, any Holder may deliver written notice (an “Opt Out Notice”)
to Linn requesting that such Holder not receive notice from Linn of any
proposed Underwritten Offering; provided, that
such Holder may later revoke any such notice.

(b)           Priority of Rights.  If the Managing Underwriter or Underwriters
of any proposed Underwritten Offering of Units included in an Underwritten
Offering involving Included Registrable Securities advises Linn, or Linn
reasonably determines, that the total amount of Units that the Selling Holders
and any other Persons intend to include in such offering exceeds the number
that can be sold in such offering without being likely to have a material
adverse effect on the price, timing or distribution of the Units offered or the
market for the Units, then the Units to be included in such Underwritten
Offering shall include the number of Registrable Securities that such Managing
Underwriter or Underwriters advises Linn, or Linn reasonably determines, can be
sold without having such adverse effect, with such number to be allocated (i)
first, to Linn, and (ii) second, pro rata among (A) Quantum Energy Partners II,
LP, a Delaware limited partnership, Clark Partners I, L.P., a New York limited
partnership, Kings Highway Investment, LLC, a Connecticut limited liability
company and Wauwinet Energy Partners, LLC, a Delaware limited liability company
(collectively, the “Partners”) and (B) the Selling Holders party to this
Agreement and those party to that certain Registration Rights Agreement dated
as of October 24, 2006, by and among Linn and the purchasers named therein, in
each case, who have requested participation in such Underwritten Offering.  The pro rata allocations for each such
Partner and each such Selling Holder shall be the product of (a) the aggregate
number of Units proposed to be sold by all Partners and Selling Holders in such
Underwritten Offering multiplied by (b) the fraction derived by dividing (x)
the number of Units owned on the Closing Date by such Partner or Selling Holder
by (y) the aggregate number of Units owned on the Closing Date by all Partners
and Selling Holders participating in the Underwritten Offering.  All participating Selling Holders shall have
the opportunity to share pro rata that portion of such priority allocable to
any Selling Holder(s) not so participating. 
As of the date of execution of this Agreement, there are no other
Persons with Registration Rights relating to Units or Class C Units other than
as described in this Section 2.02(b).

Section 2.03           Underwritten Offering.

(a)           Request for Underwritten Offering.  Any one or more Holders that collectively
hold greater than $15,000,000 of Registrable Securities, based on the purchase
price per unit under the Purchase Agreement, may deliver written notice to Linn
that such Holders wish to dispose of an aggregate of at least $15,000,000 of
Registrable Securities, based on the purchase price per unit under the Purchase
Agreement, in an Underwritten Offering. 
Upon receipt of any such written request, Linn shall retain
underwriters, effect such sale though an 

 7
 

Underwritten
Offering, including entering into an underwriting agreement in customary form
with the Managing Underwriter or Underwriters, which shall include, among other
provisions, indemnities to the effect and to the extent provided in Section
2.08, and take all reasonable actions as are requested by the Managing
Underwriter or Underwriters to expedite or facilitate the disposition of such Registrable
Securities; provided, however,
Linn management will not be required to participate in any roadshow or similar
marketing effort on behalf of any such Holder.

(b)           General Procedures.  In connection with any Underwritten Offering
under this Agreement, Linn shall be entitled to select the Managing Underwriter
or Underwriters.  In connection with an
Underwritten Offering contemplated by this Agreement in which a Selling Holder
participates, each Selling Holder and Linn shall be obligated to enter into an
underwriting agreement that contains such representations, covenants,
indemnities and other rights and obligations as are customary in underwriting
agreements for firm commitment offerings of securities.  No Selling Holder may participate in such
Underwritten Offering unless such Selling Holder agrees to sell its Registrable
Securities on the basis provided in such underwriting agreement and completes
and executes all questionnaires, powers of attorney, indemnities and other
documents reasonably required under the terms of such underwriting
agreement.  Each Selling Holder may, at
its option, require that any or all of the representations and warranties by,
and the other agreements on the part of, Linn to and for the benefit of such
underwriters also be made to and for such Selling Holder’s benefit and that any
or all of the conditions precedent to the obligations of such underwriters
under such underwriting agreement also be conditions precedent to its
obligations.  No Selling Holder shall be
required to make any representations or warranties to or agreements with Linn
or the underwriters other than representations, warranties or agreements
regarding such Selling Holder and its ownership of the securities being
registered on its behalf, its intended method of distribution and any other
representation required by Law.  If any
Selling Holder disapproves of the terms of an underwriting, such Selling Holder
may elect to withdraw therefrom by notice to Linn and the Managing Underwriter;
provided, however,
that such withdrawal must be made up to and including the time of pricing of
such Underwritten Offering.  No such
withdrawal or abandonment shall affect Linn’s obligation to pay Registration
Expenses.

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

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

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

 8
 

 

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

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

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

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

 9
 

provision of such
notice, Linn agrees to as promptly as practicable amend or supplement the
prospectus or prospectus supplement or take other appropriate action so that
the prospectus or prospectus supplement does not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the
circumstances then existing and to take such other action as is necessary to
remove a stop order, suspension, threat thereof or proceedings related thereto;

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

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

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

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

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

(l)            use its commercially reasonable
efforts to cause the Registrable Securities to be registered with or approved
by such other governmental agencies or authorities as may be 

 10
 

necessary by
virtue of the business and operations of Linn to enable the Selling Holders to
consummate the disposition of such Registrable Securities;

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

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

(o)           Linn agrees that, if any Purchaser
could reasonably be deemed to be an “underwriter”, as defined in Section
2(a)(11) of the Securities Act, in connection with the registration statement
in respect of any registration of Linn’s securities of any Purchaser pursuant
to this Agreement, and any amendment or supplement thereof (any such
registration statement or amendment or supplement a “Purchaser Underwriter
Registration Statement”), then Linn will cooperate with such Purchaser in
allowing such Purchaser to conduct customary “underwriter’s due diligence” with
respect to Linn and satisfy its obligations in respect thereof.  In addition, at any Purchaser’s request, Linn
will furnish to such Purchaser, on the date of the effectiveness of any
Purchaser Underwriter Registration Statement and thereafter from time to time
on such dates as such Purchaser may reasonably request, (i) a letter, dated
such date, from Linn’s independent certified public accountants in form and
substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to such
Purchaser, and (ii) an opinion, dated as of such date, of counsel representing
Linn for purposes of such Purchaser Underwriter Registration Statement, in
form, scope and substance as is customarily given in an underwritten public
offering, including a standard “10b-5” opinion for such offering, addressed to
such Purchaser; provided, however, that with
respect to any Placement Agent, Linn’s obligations with respect to this Section
2.04(o) shall be limited to one time, with an additional bring-down request
within 30 days of the date of such documents. 
Linn will also permit legal counsel to such Purchaser to review and
comment upon any such Purchaser Underwriter Registration Statement at least
five Business Days prior to its filing with the Commission and all amendments
and supplements to any such Purchaser Underwriter Registration Statement within
a reasonable number of days prior to their filing with the Commission and not
file any Purchaser Underwriter Registration Statement or amendment or
supplement thereto in a form to which such Purchaser’s legal counsel reasonably
objects.

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

 11
 

 

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

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

Section 2.06  Restrictions on Public Sale by Holders of
Registrable Securities.  For a period
of 365 days from the Closing Date, each Holder of Registrable Securities who is
included in the Registration Statement agrees not to effect any public sale or
distribution of the Registrable Securities during the 30-day period following
completion of an Underwritten Offering of equity securities by Linn (except as
provided in this Section 2.06); provided, however, that the duration of the foregoing restrictions
shall be no longer than the duration of the shortest restriction generally
imposed by the underwriters on the officers or directors or any other
Unitholder of Linn on whom a restriction is imposed in connection with such
public offering.  In addition, the
provisions of this Section 2.06 shall not apply with respect to a Holder that
(A) owns less than $25,000,000 of Purchased Class C Units and Purchased Units,
based on the Commitment Amounts, (B) has delivered an Opt Out Notice to Linn
pursuant to Section 2.02 hereof or (C) has submitted a notice requesting the
inclusion of Registrable Securities in an Underwritten Offering pursuant to
Section 2.02 or Section 2.03(a) hereof but is unable to do so as a result of
the priority provisions contained in Section 2.02(b) hereof.

Section 2.07           Expenses.

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

 12
 

 

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

Section 2.08           Indemnification.

(a)           By Linn.  In the event of an offering of any
Registrable Securities under the Securities Act pursuant to this Agreement,
Linn will indemnify and hold harmless each Selling Holder thereunder, its
directors and officers, and each underwriter, pursuant to the applicable
underwriting agreement with such underwriter, of Registrable Securities
thereunder and each Person, if any, who controls such Selling Holder or
underwriter within the meaning of the Securities Act and the Exchange Act, and
its directors and officers, against any losses, claims, damages, expenses or
liabilities (including reasonable attorneys’ fees and expenses) (collectively, “Losses”),
joint or several, to which such Selling Holder, director, officer, underwriter
or controlling Person may become subject under the Securities Act, the Exchange
Act or otherwise, insofar as such Losses (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the Registration Statement or any other registration statement contemplated by
this Agreement, any preliminary prospectus, free writing prospectus or final
prospectus contained therein, or any amendment or supplement thereof, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein (in the case of a prospectus, in light of the circumstances under which
they were made) not misleading, and will reimburse each such Selling Holder,
its directors and officers, each such underwriter and each such controlling Person
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such Loss or actions or proceedings; provided, however, that
Linn will not be liable in any such case if and to the extent that any such
Loss arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission so made in strict conformity with
information furnished by such Selling Holder, its directors or officers or any
underwriter or controlling Person in writing specifically for use in the
Registration Statement or such other registration statement, or prospectus
supplement, as applicable.  Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Selling Holder or any such Selling Holder, its
directors or officers or any underwriter or controlling Person, and shall
survive the transfer of such securities by such Selling Holder.

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

 13
 

greater in amount
than the dollar amount of the proceeds (net of any Selling Expenses) received
by such Selling Holder from the sale of the Registrable Securities giving rise
to such indemnification.

(c)           Notice.  Promptly after receipt by an indemnified
party hereunder of notice of the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from
any liability which it may have to any indemnified party other than under this
Section 2.08.  In any action brought
against any indemnified party, it shall notify the indemnifying party of the
commencement thereof.  The indemnifying
party shall be entitled to participate in and, to the extent it shall wish, to
assume and undertake the defense thereof with counsel reasonably satisfactory
to such indemnified party and, after notice from the indemnifying party to such
indemnified party of its election so to assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party
under this Section 2.08 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation and of liaison with counsel so selected; provided, however, that,
(i) if the indemnifying party has failed to assume the defense or employ
counsel reasonably acceptable to the indemnified party or (ii) if the
defendants in any such action include both the indemnified party and the indemnifying
party and counsel to the indemnified party shall have concluded that there may
be reasonable defenses available to the indemnified party that are different
from or additional to those available to the indemnifying party, or if the
interests of the indemnified party reasonably may be deemed to conflict with
the interests of the indemnifying party, then the indemnified party shall have
the right to select a separate counsel and to assume such legal defense and
otherwise to participate in the defense of such action, with the reasonable
expenses and fees of such separate counsel and other reasonable expenses
related to such participation to be reimbursed by the indemnifying party as
incurred.  Notwithstanding any other
provision of this Agreement, no indemnified party shall settle any action
brought against it with respect to which it is entitled to indemnification
hereunder without the consent of the indemnifying party, unless the settlement
thereof imposes no liability or obligation on, and includes a complete and
unconditional release from all liability of, the indemnifying party.

(d)           Contribution.  If the indemnification provided for in this
Section 2.08 is held by a court or government agency of competent jurisdiction
to be unavailable to any indemnified party or is insufficient to hold them
harmless in respect of any Losses, then each such indemnifying party, in lieu
of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Loss in such proportion
as is appropriate to reflect the relative fault of the indemnifying party on
the one hand and of such indemnified party on the other in connection with the
statements or omissions which resulted in such Losses, as well as any other
relevant equitable considerations; provided, however, that in no event shall such Selling Holder be
required to contribute an aggregate amount in excess of the dollar amount of
proceeds (net of Selling Expenses) received by such Selling Holder from the sale
of Registrable Securities giving rise to such indemnification.  The relative fault of the indemnifying party
on the one hand and the indemnified party on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact has been made by, or relates to,

 14
 

information
supplied by such party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission.  The parties hereto agree that
it would not be just and equitable if contributions pursuant to this paragraph
were to be determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to herein.  The amount paid by an
indemnified party as a result of the Losses referred to in the first sentence
of this paragraph shall be deemed to include any legal and other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any Loss which is the subject of this paragraph.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who is not guilty of such
fraudulent misrepresentation.

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

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

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

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

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

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

 15
 

 

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

ARTICLE III

MISCELLANEOUS

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

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

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

(c)           if to Linn, at 600 Travis, Suite
6910, Houston, Texas 77002 (facsimile: 713.223.0888), notice of which is given
in accordance with the provisions of this Section 3.01.

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

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

Section 3.03  Aggregation of Purchased Class C Units and
Purchased Units.  All Purchased Class
C Units and Purchased Units held or acquired by Persons who are Affiliates of
one another shall be aggregated together for the purpose of determining the
availability of any rights under this Agreement.  In addition, all Registrable Securities held
or acquired by Fiduciary/Claymore MLP Opportunity Fund and its Affiliates, on
the one hand, and Energy Income and Growth Fund and its Affiliates, on the
other hand, shall be aggregated together for purposes of determining the
availability of any rights under this Agreement.

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

 16
 

 

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

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

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

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

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

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

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

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

Section 3.13  Obligations Limited to Parties to Agreement.  Each of the Parties hereto covenants, agrees and acknowledges that no
Person other than the Purchasers (and their 

 17
 

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

[The remainder of this page is
intentionally left blank]

 18

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

	
  

  	
  LINN ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. Linn

  
	
   

  	
   

  	
  Name: Michael C. Linn

  
	
   

  	
   

  	
  Title Cheif Executive Officer

  

 

[Signature Page to Registration
Rights Agreement]

    IN WITNESS
WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.
  	   
  	  ZLP Fund, L.P.
  
	   
  	   
  
	   
  	  By: Zimmer Lucas Partners, LLC, its General Partner
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Craig M. Lucas
  	   
  
	   
  	   
  
	   
  	  Name: Craig M. Lucas
  
	   
  	   
  
	   
  	  Title: Managing Member
  

   
  

    IN WITNESS
WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.
  	  
  	  STRUCTURED FINANCE
  
	   
  	  AMERICAS LLC
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Jill H. Pathjen
  	   
  
	   
  	   
  
	   
  	  Name:
  	  Jill H. Pathjen
  	   
  
	   
  	   
  
	   
  	  Title:
  	  Vice President
  	   
  
	   
  	   
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Richard Kennedy
  	   
  
	   
  	   
  
	   
  	  Name:
  	  Richard Kennedy
  	   
  
	   
  	   
  
	   
  	  Title:
  	  President
  	   
  
								

   
  

    IN WITNESS
WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.
  	  
  	  ROYAL BANK OF CANADA
  
	   
  	   
  
	   
  	  By: RBC CAPITAL MARKETS
  
	   
  	  CORPORATION, its
  agent
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Josef Muskatel
  
	   
  	  Name: Josef
  Muskatel
  
	   
  	  Title: Director
  and Senior Counsel
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Stephen Milke
  
	   
  	  Name: Steven
  Milke
  
	   
  	  Title: Managing
  Director
  

   
  

    IN WITNESS
WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.
  	  
  	  Credit Suisse Management LLC
  
	   
  	   
  
	   
  	  By:
  	  /s/ Credit Suisse Management LLC
  
	   
  	   
  

  

    IN WITNESS
WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.
  	   
  	  GPS Partners LLC
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Brett Messing
  
	   
  	   
  	   
  
	   
  	  Name:
  	  Brett Messing
  
	   
  	   
  	   
  
	   
  	  Title:
  	  Managing Partner
  
					

   
  

    IN WITNESS
WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.
  	   
  	  By: Del Mar Master Fund LTD.
  
	   
  	   
  
	   
  	  /s/ Marc Simons
  
	   
  	   
  
	   
  	  Name:
  	  Marc Simons
  
	   
  	   
  
	   
  	  Title:
  	  Director
  
				

   
  

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

  PARTNERS, L.P.
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Michael J. Cannon
  
	   
  	  Name: Marc
  Simons
  
	   
  	  Title: Director
  
	   
  	   
  
	   
  	  Lehman Brothers
  MLP Partners, L.P.
  
	   
  	  399 Park Ave.
  9th Floor
  
	   
  	  New York, NY
  10022
  

   
  

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

  on behalf of certain funds and

  accounts it manages
  
	   
  	   
  
	   
  	  By:
  	  /s/ (illegible)
  
	   
  	   
  
	   
  	  Name:
  	  Brahman Capital Corp., on behalf of 
  
	   
  	  certain funds
  and accounts it manages
  
	   
  	  Title:
  	  President
  
					

   
  

    IN WITNESS
WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.
  	  
  	  Citigroup Global Markets Inc.
  
	   
  	   
  
	   
  	  By:
  	  /s/ Daniel P. Breen
  
	   
  	   
  
	   
  	  Name:
  	  Daniel P. Breen
  
	   
  	   
  
	   
  	  Title:
  	  Managing Director
  
					

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
  	  
  	  GOLDMAN SACHS & CO., on behalf of its Principal
  Strategies Group
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Gaurav Bhandari
  
	   
  	   
  	   
  
	   
  	   
  	  Name:
  	  GAURAV BHANDARI
  
	   
  	   
  	   
  	   
  
	   
  	   
  	  Title:
  	  Managing Director
  
					

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  Alerian Opportunity Partners V L.P.
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Richard Levy
  
	   
  	   
  	   
  
	   
  	   
  	  Name:
  	  RICHARD LEVY
  
	   
  	   
  	   
  	   
  
	   
  	   
  	  Title:
  	  CFO Alerian Capital Management
  
					

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  RCH Energy MLP Fund, L.P.
  
	   
  	   
  	  By: RCH Energy MLP Fund GP, L.P.
  
	   
  	   
  	  Its General Partner
  
	   
  	   
  	  By: RR Advisors, LLC
  
	   
  	   
  	  Its General Patner
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Robert Raymond
  
	   
  	  Name:
  	  Robert Raymond
  
	   
  	  Title:
  	  Member
  
								

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  RCH Energy MLP Fund A, L.P.
  
	   
  	   
  	  By: RCH Energy MLP Fund GP, L.P.
  
	   
  	   
  	  Its General Partner
  
	   
  	   
  	  By: RR Advisors, LLC
  
	   
  	   
  	  Its General Patner
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Robert Raymond
  	   
  
	   
  	  Name:
  	  Robert Raymond
  
	   
  	  Title:
  	  Member
  
								

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  RCH Energy Opportunity Fund I, L.P.
  
	   
  	   
  	  By: RCH Energy Opportunity Fund I GP, L.P.
  
	   
  	   
  	  Its General Partner
  
	   
  	   
  	  By: RR Advisors, LLC
  
	   
  	   
  	  Its General Patner
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Robert Raymond
  	   
  
	   
  	  Name:
  	  Robert Raymond
  
	   
  	  Title:
  	  Member
  
								

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  ENERGY INCOME AND GROWTH FUND
  
	   
  	   
  
	   
  	   
  	  By:
  	  /s/ JAMES BOWEN
  
	   
  	   
  	   
  
	   
  	   
  	  Name : James Bowen
  
	   
  	   
  	   
  
	   
  	   
  	  Title: President
  
					

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  Fiduciary/Claymore MLP Opportunity Fund
  
	   
  	   
  
	   
  	  By:
  	  /s/ JAMES J. CUNNANE, JR.
  
	   
  	   
  	  Name :
  	  James J. Cunnane, Jr.
  
	   
  	   
  	  Title:
  	  Vice President
  
					

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  JENNISON UTILITY FUND
  
	   
  	   
  
	   
  	  By Jennison Associates LLC, as investment
  
	   
  	  adviser
  
	   
  	   
  
	   
  	  By:
  	  /s/ Ubong U.
  Edemeka
  	   
  
	   
  	   
  	   
  	   
  
	   
  	  Name: Ubong U. Edemeka
  	   
  
	   
  	   
  	   
  
	   
  	  Title: Managing Director
  	   
  

   
  

    IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.
   
  	  
  	  By: Reservoir Master Fund, L.P.
  
	   
  	   
  
	   
  	  By: RMF GP, LLC, its general
  
	   
  	  partner
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ CRAIG HUFF
  
	   
  	   
  
	   
  	  Name : Craig Huff
  
	   
  	   
  
	   
  	  Title: President
  

   
  

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

	
  

  	
   

  	
  The Sharr Fund LTD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ (illegible)

  	
   

  
	
   

  	
   

  	
  Name:

  	
  (illegible)

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  

 

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

	
  

  	
   

  	
  Arbiter Partners, L.P.

  
	
   

  	
   

  	
  BROKEN CLOCK MANAGEMENT,

  
	
   

  	
   

  	
  GENERAL PARTNER,

  
	
   

  	
   

  	
  ARBITER PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Paul Isaac.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  PAUL J. ISAAC

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  MANAGING MEMBER,

  	
   

  
							

 

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

	
  

  	
   

  	
  Diaco Investments, LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Simon Glick

  	
   

  
	
   

  	
   

  	
  Name:

  	
  SIMON Glick

  	
   

  
	
   

  	
   

  	
  Title:

  	
  SP SIGET LLC

  	
   

  
						

 

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

	
  

  	
   

  	
  Black Diamond Offinove Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Garison Capital, L.P. its investment advisor

  
	
   

  	
   

  	
  By:

  	
  Atgard Investment Corp, its general partner

  
	
   

  	
   

  	
  By:

  	
  /s/ Clint D. Carlson

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Clint D. Carlson

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President

  
						

 

 

 

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

 

	
  

  	
   

  	
  Double Black Diamond Offinove Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Garison Capital, L.P. its investment advisor

  
	
   

  	
   

  	
  By:

  	
  Atgard Investment Corp, its general partner

  
	
   

  	
   

  	
  By:

  	
  /s/ Clint D. Carlson

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Clint D. Carlson

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President

  
						

 

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

	
  

  	
   

  	
  Calm Waiers Partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ RICHARD S. STRONG

  	
   

  
	
   

  	
   

  	
  Name:

  	
  RICHARD S. STRONG

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Partner

  	
   

  	
   

  
							

 

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

	
  

  	
   

  	
  Gracie Capital, LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Greg Pearson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Greg Pearson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO

  	
   

  	
   

  
							

 

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

	
  

  	
   

  	
  Gracie Capital, LP II

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Greg Pearson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Greg Pearson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO

  	
   

  
							

 

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

	
  

  	
   

  	
  Gracie Capital, Intl, Ltd

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Greg Pearson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Greg Pearson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO

  	
   

  
							

 

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

	
  

  	
   

  	
  Gracie Capital, Intl, Ltd II

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Greg Pearson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Greg Pearson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO

  	
   

  
							

 

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

	
  

  	
  Guggenheim Portfolio Company XLII, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Greg Pearson

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Greg Pearson

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO

  
					

 

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

	
  

  	
  Hartz Capital MLP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Hartz Trading Inc.,

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald J. Bangs

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
     Name:

  	
  Ronald J. Bangs

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
     Title:

  	
  Vice President

  
					

 

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

	
  

  	
  UBS AG

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris Coward

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Chris Coward

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

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

	
  

  	
  Strome MLP Fund, LP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Achterberg

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael Achterberg

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  CFO of the General Partner

  
	
   

  	
   

  	
  Strome Investment Management, LP

  
					

 

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

 

	
  

  	
  By:

  	
  /s/ Howard L. Terry

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  HOWARD L. TERRY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Individually

  
					

 

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

	
  

  	
  By:

  	
  /s/ Tracy W. Krohn

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Tracy W. Krohn

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

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

	
  

  	
  Locust Wood Capital, LP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen J. Errico

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephen J. Errico

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  
					

 

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

	
  

  	
  Portcullis Partners, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. Morgan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael C. Morgan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President, Portcullis Partners, L.PExhibit
10.3
  TRANSITION SERVICES
AGREEMENT
  THIS TRANSITION SERVICES AGREEMENT (“Agreement”) is made and entered into
this 1st day of February 2007,
by and between Stallion Energy LLC, a Delaware
limited liability company (“Stallion”),
and Linn Energy, LLC, a Delaware limited liability company (“Linn”), Linn Energy Holdings, LLC, a
Delaware limited liability company (“Linn Holdings”),
Linn Operating, Inc., a Delaware corporation (“Linn
Operating”) and Penn West Pipeline, LLC, a Texas limited
liability company (“Penn West”, and together with
Linn, Linn Holdings and Linn Operating the “Linn Parties”).
  RECITALS
  WHEREAS, Cavallo Energy LP, a Delaware limited
partnership (“Cavallo”), and Linn have entered into
certain Purchase and Sale Agreements, each dated as of December 13, 2006, (the “Purchase Agreements”), whereby
Cavallo has agreed to
sell to Linn all of Cavallo’s right, title, interest and estate in and to the “Assets” (as defined in the Purchase
Agreements);
  WHEREAS, at
the Closings (as defined in the Purchase Agreements) Linn designated certain of
its Affiliates (as defined in the Purchase Agreements) to take assignment of
and title to certain of the Assets, and Cavallo assigned certain of the Assets
to Linn Holdings and to Linn Operating,
  WHEREAS,
Cavallo Gathering Company, LLC, a Texas limited liability company (“Cavallo Gathering”) and Penn West
Pipeline, LLC, a Delaware limited liability company, have entered into that
certain Assignment, Conveyance and Bill of Sale dated February 1, 2007 (the “Gathering System  Conveyance”), pursuant to which
Cavallo Gathering has assigned, conveyed and sold a gathering system and
certain related assets more particularly described in the Gathering System
Conveyance (the “Gathering Assets”);
  WHEREAS, Stallion is currently the operator of the
Assets and of the Gathering Assets and the Linn Parties desire that Stallion
continue to provide, or cause to be provided, to the Linn Parties certain
services related to the operation, development, maintenance and other similar
services related to the Assets and the Gathering Assets for a transitional
period following the closing of the transactions contemplated in the Purchase
Agreements (the “Closing Date”);
  WHEREAS, the Linn Parties desire to employ certain
persons currently employed by Stallion and Stallion has agreed to provide such
persons the opportunity to seek employment with the Linn Parties and assist the
Linn Parties in retaining such persons’ services; and
  WHEREAS, terms defined in the Purchase Agreements
shall have the same meanings when used herein unless expressly stated
otherwise, except that for purposed of this Agreement the term “Assets” shall
include the Gathering Assets.
  NOW, THEREFORE, for the mutual
covenants, promises and agreements herein contained, Stallion and the Linn
Parties covenant and agree as follows:

    1.             Services
  (a)         During
the Initial Term (as hereinafter defined), Stallion will perform the services
in respect of the Assets, which services are set forth on Appendix B
hereto through the dates set
forth in this Agreement.  The services
shall be similar to those duties and obligations that Stallion has performed as
operator of the Assets prior to acquisition of such Assets by the Linn Parties.
  (b)         Stallion
shall maintain such offices and staff as it currently maintains for the
performance of its services hereunder, and Stallion shall devote to the
performance of the services hereunder the personnel currently rendering such
services or other personnel experienced and qualified in such matters. Stallion
may hire such personnel as it deems necessary to perform the Services.  Stallion will at all times endeavor to
perform such services in accordance with good professional industry and
business standards, and in respect of the operational and field services
provided hereunder, to the standard of a reasonably prudent oil and gas
operator in the area under the same or similar circumstances, but in no event
shall Stallion have any liability to any Linn Party for losses sustained or
liabilities incurred in performing any services except to the extent such
losses or liabilities result from gross negligence or willful misconduct of
Stallion or its agents.  Stallion and its
Affiliates shall have access to and use of the Assets to perform the services
to be provided pursuant to this Agreement.
  (c)         Stallion shall not
enter into any contracts relating to the Assets or wells to be drilled on the
Assets during the term of this Agreement without the prior written agreement of
Linn.
  (d)         Appendix C sets forth the
material current contracts and agreements with third parties pursuant to which
services are provided in connection with the Assets (“Service Contracts”).  If at the termination of this Agreement any
Service Contract has not yet expired, then Linn shall have the option to either:
(i) take assignment of the Service Contract from Stallion, if assignable; such
assignment to be made to the Linn Party designated by Linn or (ii) instruct
Stallion to terminate the Service Contract and reimburse Stallion for any early
termination fees or costs associated with such early termination.
  2.             Compensation and Remittance of Net Available Cash
  (a)         For the
performance of services hereunder, Stallion will be entitled to the G&A Fee
(as defined in the schedule attached as Appendix A hereto).
  (b)         Until
termination of this Agreement, Stallion shall continue to receive and collect
revenues from the Assets and/or
any wells drilled on the Assets during the term of this Agreement for the
account of and on behalf of the Linn Party who is entitled thereto and shall
remit same as provided in this Paragraph 2 (the total amount of such revenues
are herein referred to as the “Linn Gross Revenues”)
  (c)         Each month during the
term hereof, Stallion shall deduct from the Linn Gross Revenues applicable production,
severance and other taxes and remit, as applicable, those taxes to the extent
not withheld by the purchaser of production. 
The

 2
 

    amount of Linn
Gross Revenues less applicable production, severance and other taxes is herein referred to as the “Linn Net Revenues”.
  (d)         Each month, during the term hereof,
Stallion shall deduct from the Linn Net Revenues the following: (i) the G&A
Fee for such month, (ii) the amount of outstanding operating expenses, workover
expenses, capital expenditures and other costs and expenses incurred either as
Reimbursable Expenses (as defined in the Schedule attached as Appendix A
hereto) or Field Expenses (as defined in the Schedule attached as Appendix A
hereto) and (iv) the amounts incurred pursuant to the Work Plan and Capital
Budget (the aggregate of such amounts is herein referred to as the “Permitted Deductions”).
  (e)         Stallion will disburse the “Net
Available Cash” to Linn concurrently with the disbursement to royalty and other
non-operating working interest owners. For purposes of this provision, Net Available Cash is defined as the Linn
Net Revenues less the Permitted Deductions. 
With each remittance of Net Available Cash, Stallion will submit to Linn
a statement in reasonable detail reflecting the Linn Net Revenues and the amount
of and supporting documentation for Permitted Deductions for the previous
month.
  (f)          Contemporaneously with the execution
of this Agreement, Linn has advanced to Stallion working capital in the amount
of $2 million (the “Working Capital”)
to be used by Stallion in connection with the performance of the Services.
During the term of this Agreement, Stallion will be entitled to retain amounts
from the Linn Net Revenues to maintain the working capital account at
approximately $2 million.  If in any
month the amount of the Permitted Deductions exceeds the Linn Net Revenues,
Linn will within five (5) business days from receipt of an invoice therefor pay
to Stallion the amount necessary to maintain the working capital balance at
approximately $ 2 million. Upon termination of this Agreement, Stallion will
remit to Linn the balance of the working capital account remaining after
payment of all costs and expenses payable to Stallion under this Agreement.
  (g)         All taxes, of every nature and kind,
including, by way of illustration and not by way of limitation, franchise,
income, license, occupation or property taxes incurred by or assessed against
Stallion as a result of this Agreement, the performance by it of services
hereunder, or the receipt by it of payments hereunder (not including taxes
assessed against the Assets or production or income therefrom), shall be borne
by and paid by Stallion, but shall be Reimbursable Expenses.
  (h)         During the term of this Agreement, Stallion
shall prepare and execute or cause Cavallo to execute letters in lieu of
transfer orders covering the Assets, which will be sent to the purchasers of
production upon termination of this Agreement.

 3
 

    3.             Relationship of Parties
  (a)         In the performance of its services hereunder, Stallion shall
be an independent contractor, and no relationship of partnership, joint
venture, principal and agent, or employer and employee shall exist or arise
between any Linn Party and Stallion or any Affiliate, officer, director, or
employee of Stallion.  By notice to
Stallion’s Designated Representative, Linn may generally direct the work to be
undertaken by Stallion hereunder; provided, however that the method and
staffing of such work shall at all times be directed and carried out by
Stallion as an independent contractor.
  (b)         Neither Stallion nor any of its
officers or employees shall have any right, power, or authority to make any
warranty or representation on behalf of any Linn Party, contract for any Linn
Party, or commit any Linn Party to any obligation or undertaking other than
actions taken reasonably by Stallion in connection with an emergency situation
of which Stallion notifies Linn within a reasonable time after its occurrence
(and the Linn Parties shall indemnify Stallion for all costs, expenses, and
liabilities incurred in connection with such emergency response).
  (c)         As used in this Agreement, Linn’s
Designated Representative shall mean Roland P. Keddie or his designee, who will
serve as the liaison between the Linn Parties and Stallion during performance
of the services under this Agreement.  No
oral agreement with Linn’s Designated Representative can affect or modify any
of the terms or obligations of this Agreement. 
A copy of all correspondence concerning the services under this
Agreement shall be sent to the Designated Representative that authorized the
services under this Agreement.  Linn
reserves the right to change its Designated Representative at any time.  Such Designated Representative shall have the
full right and authority to bind the Linn Parties with respect to any matter
under this Agreement, including notices, consents, directives and agreements.
  (d)         As used in this Agreement, Stallion’s
Designated Representative shall mean George P. SanFilippo, President of
Stallion, or his designee, who will serve as the liaison between the Linn
Parties and Stallion during the performance of the services under this
Agreement.  No oral agreement with
Stallion’s Designated Representative can affect or modify any of the terms or
obligations of this Agreement.  A copy of
all correspondence concerning the services under this Agreement shall be sent
to the Designated Representative that authorized the services under this
Agreement.  Stallion reserves the right
to change its Designated Representative at any time.  Such Designated Representative shall have the
full right and authority to bind Stallion with respect to any matter under this
Agreement, including notices, consents, directives and agreements.

 4
 

    4.             Employees.  
  (a)         During the term of this Agreement, Stallion
will assist Linn in seeking to retain certain of Stallion’s employees to effectuate a smooth transition of the operation of the
Assets by the Linn Parties subsequent to the termination of this
Agreement.  The Stallion employees that
Linn desires to hire subsequent to the termination of this Agreement (the “Stallion Employees”)
are set forth on Appendix D attached hereto (the Stallion Employees that
Linn hires are referred to as the “Continuing Employees”).
  (b)         Nothing in this Agreement or the Purchase Agreements
shall require or be construed or interpreted as requiring the Linn Parties or
any Affiliate thereof to offer employment to any employee of Stallion or its
Affiliates or to continue the employment of any employee of Stallion or its
Affiliates (including any Continuing Employees) following the Closing Date, or
to prevent a Party Linn or an Affiliate thereof from changing the terms and
conditions of employment (including compensation and benefits) of any of its
employees (including any Continuing Employees) following the Closing Date.  Stallion and the Linn Parties hereby
acknowledge and agree that any employment offered by Linn to a Continuing
Employee will be “at will” and may be terminated by the relevant Linn Party or
Affiliate thereof or such Continuing Employee at any time for any reason
(subject to applicable Laws and to any specific written commitments made to the
contrary by a Linn Party or an Affiliate thereof or such Continuing
Employee).  Further, any such offer of
employment shall be on such terms and conditions as the Linn Parties or their
Affiliates shall determine and may be conditioned upon the Stallion Employee’s
passage of the Linn Party’s pre-employment screening requirements.
  (c)         Stallion shall notify the Stallion Employees of Linn’s
desire to hire them.  Stallion and Linn
shall assist one another in providing such employees the right to meet with
representatives of Linn to the discuss the capacity in which such persons will
be employed by a Linn Party or an Affiliate thereof and the terms and conditions
under which such employment will be offered; provided,
however, that no employee of Stallion shall be required to accept an
offer of employment with a Linn Party or Affiliate thereof if such an offer is
made.  Stallion shall retain all
liability for all severance benefits to be provided to the employees of
Stallion (including but not limited to any Stallion Employees who receive but
do not accept offers of employment from a Linn Party or Affiliate thereof)
under Stallion’s employment agreements, offer letters, or severance plans or
policies.  Not earlier than thirty (30)
days and not later than seven (7) days prior to the termination date of this
Agreement, Linn shall provide offers of employment to the Stallion Employees a
Linn Party or Affiliate thereof desires to hire, with each offer stipulating
that the date for commencement of work is the termination date of this
Agreement (the “Hire Date”).
  (d)         No Stallion Employee shall become a Continuing
Employee unless he or she (i) accepts a Linn Party’s or Affiliate’s offer of
employment under the terms provided in such Linn Party’s or Affiliate’s offer,
(ii) passes any required pre-employment screening required by such Linn Party
or Affiliate, and (iii) on the Hire Date, is actively at work, on sickness or
disability leave, or an approved leave of absence.

 5

(e)         The relevant Linn Party or Affiliate shall grant to
the Continuing Employees credit for their past service years as reflected in
Appendix B for the following: (i) vesting and eligibility purposes under any
employee benefit programs maintained by the Linn Parties or their Affiliates in
which they are available to participate and (ii) determining the duration and amount of their benefits under any sick
pay or sick leave policy or vacation policy, maintained by the Linn
Parties or their Affiliates in which
they are eligible to participate.  Stallion
shall use commercially reasonable efforts to provide Linn with all necessary
transition assistance, including any applicable service credit information
relating to Continuing Employees, to enable Linn to develop and implement
compensation and benefit plans and programs for any Continuing Employees.

(f)          Effective as of each Stallion Employee’s respective
Hire Date, such Stallion Employee that becomes a Continuing Employee shall
cease to actively participate or be eligible to actively participate in all “employee
benefit plans” (within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended) of Stallion or its Affiliates
providing benefits to any Stallion Employees or other present or former
Stallion employees or their dependents and beneficiaries (the “Stallion Plans”).  The Linn Parties or their Affiliates shall
not assume any of the Stallion Plans or be liable in any respect for the
funding of or contributions to any Stallion Plans.  Until each Stallion Employee’s respective
Hire Date, such Stallion Employee shall remain the employee of Stallion and
Stallion shall provide his or her wages and employee benefits at Stallion’s
sole expense.  Without limiting the
foregoing, for all periods prior to the Closing Date and from the Closing Date
until each Stallion Employee’s respective Hire Date (but, with respect to such
post-Closing Date period, subject to the Linn Parties’ compliance with their
obligations pursuant to Paragraph 2(b)), Stallion shall be responsible for (i)
the base salaries and overtime payments of the Stallion Employees along with
any bonuses to which such Stallion Employee may be entitled, (ii) the costs of
the Stallion Employees’ participation in the retirement, medical, dental and
other employee benefit plans sponsored by Stallion, (iii) workers’ compensation
coverage of the Stallion Employees, (iv) vacation and leave pay for the
Stallion Employees, (v) the employer’s portion of any health, life, disability
or other insurance provided as a part of Stallion’s employee benefit plans in
effect after the Closing Date and in which the Stallion Employees participate,
(vi) all employee taxes (including Social Security, Medicare and unemployment
taxes) and tax withholdings, and (vii) all payroll processing, payroll
deduction, tax withholding and tax reporting services, employee benefit
administration, claims processing, personnel administration, and all such
related human resources services with respect to the Stallion Employees.

(g)         Prior to the Hire Date of a Stallion Employee,
Stallion shall have the right to control and direct the Stallion Employees as
to the performance of duties and as to the means by which such duties are
performed, including the right to terminate the employment of any Stallion
Employee, provided that: (i) the Linn parties shall not be liable for any cost,
expense or severance benefits related to any such terminated Stallion Employee;
and (ii) Stallion and its Affiliates agree not to rehire any such terminated
Stallion Employee for a period of two years following any such Stallion
Employee’s termination date.  Stallion
shall fully and timely inform Linn of and consult Linn with

 6
 

respect to,
all employment, benefit workplace and performance matters relating to Stallion
Employees during the term of this Agreement and prior to the Stallion Employees’
respective Hire Dates that, in the reasonable judgment of Stallion’s
management, could have a material impact on Linn prior to taking any actions or
making any decisions with respect to such matters.  Notwithstanding the foregoing, prior to each
Stallion Employee’s respective Hire Date, Stallion shall have the right to
direct such employee to perform reasonable administrative duties on behalf of
Stallion in connection with the winding down of Stallion’s services with
respect to the Assets and the termination of any Stallion Plans.  During the Initial Term (and the Extended
Term, if any) but prior to the Stallion Employees’ respective Hire Dates,
Stallion will not permanently reassign, promote or relocate any Stallion
Employee without the written consent of Linn. 
Stallion shall be responsible for complying with all safety, health and
work-related laws, regulations and rules with respect to the Stallion Employees
employed by Stallion during the Initial Term (and Extended Term, if any).  Nothing herein is intended to affect Stallion’s
status as employer of each Stallion Employee while employed by Stallion or
Stallion’s control over such individual until his or her respective Hire Date.

(h)         For the period beginning on each Continuing Employee’s
Hire Date and ending on the date that is two (2) years after the Closing Date,
neither Stallion nor any of its Affiliates will, unless acting in accordance
with Linn’s prior written consent, solicit, encourage or otherwise induce such
Continuing Employee to become an employee of Stallion or any of its
Affiliates.  Notwithstanding the
foregoing, neither Stallion nor its Affiliates will be prohibited from hiring
or contracting for the services of a Continuing Employee who has terminated his
or her employment relationship with Linn without solicitation or inducement
from Stallion or its Affiliates. An advertisement by Stallion or its Affiliates
for employment published in newspapers shall not constitute a breach of the
obligations of Stallion or its Affiliates under this Section 4(h).

(i)          On or before each Continuing Employee’s
Hire Date, if any, Stallion shall take and shall cause its Affiliates to take
any necessary action to waive any covenants not to compete, confidentiality
provisions or similar restrictions under agreements between Stallion and/or
such Affiliates and the Continuing Employee that may be applicable to any
Continuing Employee, but only to the extent any of the foregoing would preclude
a Continuing Employee from accepting employment with a Linn Party or an
Affiliate thereof, and may not restrain such Continuing Employee in any way in
performing his services for the Linn Parties or their Affiliates.

 7
 

5.             Term

(a)         Unless sooner terminated as hereinafter provided or as
otherwise expressly provided in Appendix A, this Agreement shall
continue for a term commencing on the Closing Date and ending on June 30, 2007
(the “Initial Term”).  Stallion and Linn may, by mutual agreement in
writing, extend the Agreement for successive periods thereafter, (each of which is referred to herein as an “Extended Term”).  Notwithstanding the foregoing, the provisions
of Paragraph 6 shall continue for a period of two (2) years after the date hereof
and the provisions of Paragraph 7 shall survive the termination of this
Agreement.

(b)         Linn may, in its sole discretion, terminate all of the
services provided by Stallion hereunder at any time by giving Stallion no less
than thirty (30) days prior written notice. 
Linn may, in its sole discretion, terminate all of the accounting
services provided by Stallion hereunder at any time by giving Stallion no less
than thirty (30) days prior written notice, and upon such termination the
G&A Fee shall be reduced from a monthly rate of $250,000 to a monthly rate
of $200,000 for the period after the date on which all accounting services
cease.  If Linn elects to terminate all
of the accounting services, then upon such termination and during the remaining
term of this Agreement, Linn will pay to Stallion, upon receipt of invoice
therefore, the amounts necessary to maintain a working capital balance of
$4,000,000.  Upon final termination of
this Agreement, the remaining working capital balance will be accounted for as
provided in Section 2(f).  Linn may also
terminate this Agreement as to all of the services provided by Stallion
hereunder, subject to applicable notice and cure specified in (d) below, upon
the occurrence of any of the following events:

i)              Stallion shall fail to perform or
observe any material term, covenant, or agreement contained in this Agreement.

ii)             Stallion shall apply for relief as
a debtor under Title 11 of the United States Code, or admit in writing its
inability to pay its debts as they mature, or make an assignment for the
benefit of creditors, or shall apply for or consent to the appointment of any
receiver, trustee, or similar officer for it or for all or any substantial part
of its property, or Stallion shall institute (by petition, application, answer,
consent, or otherwise) any bankruptcy, insolvency, reorganization, arrangement,
readjustment of debt, dissolution, liquidation, or similar proceeding relating
to it under the laws of any jurisdiction.

iii)            A receiver, trustee, or other similar
officer shall be approved for a purpose defined in clause (2) above without the
application or consent of Stallion, or proceeding defined in clause (2) shall
be instituted (by petition, application, or otherwise) against Stallion and
shall remain undismissed or unstayed for a period of thirty (30) days, or any
judgment, writ, warrant, attachment, or execution or similar process shall be
issued or levied against any material asset of Stallion and shall not be
released, vacated, stayed, or fully bonded within sixty (60) days after its
issue or levy.

 8

iv)  Stallion shall be declared, by written
notice, to be in default in the payment of any material indebtedness (as
hereinafter defined) owed by it and such failure shall remain unremedied on the
expiration of any grace or cure period provided for the payment thereof, unless
such failure to perform shall be expressly waived in writing by the holder or
holders of such indebtedness; for the purpose of this clause (4) “indebtedness” means:  (1) all indebtedness or other obligation or
liability (primary or secondary, fixed or contingent) for borrowed money or for
the deferred purchase price of property or services and (2) all indebtedness or
other obligations for borrowed money or for the deferred purchase price of
property or services secured by (or for which the holder of such indebtedness
has an existing right, contingent or otherwise, to be secured by) any mortgage,
deed of trust, pledge, lien, security interest, or other charge or encumbrance
upon or in property (including, without limitation accounts and contract
rights) owned by Stallion whether or not Stallion has assumed or become liable
for the repayment of such indebtedness or obligations.

(c)  Stallion may, in its sole discretion,
terminate all of the services provided by Stallion hereunder at any time by
giving Linn no less than thirty (30) days prior written notice.  Stallion may also terminate this Agreement as
to all of the services provided by Stallion hereunder, subject to applicable
notice and cure provided in (d) below, upon the occurrence of any of the
following events:

i)  A Linn Party shall fail to perform or observe
any material term, covenant, or agreement contained in this Agreement.

ii)  Linn shall apply for relief as a debtor under
Title 11 of the United States Code, or admit in writing its inability to pay
its debts as they mature, or make an assignment for the benefit of creditors,
or shall apply for or consent to the appointment of any receiver, trustee, or
similar officer for it or for all or any substantial part of its property, or Linn
shall institute (by petition, application, answer, consent, or otherwise) any
bankruptcy, insolvency, reorganization, arrangement, readjustment of debt,
dissolution, liquidation, or similar proceeding relating to it under the laws
of any jurisdiction.

iii)  A receiver, trustee, or other similar officer
shall be approved for a purpose defined in clause (2) above without the
application or consent of Linn, or proceeding defined in clause (2) shall be
instituted (by petition, application, or otherwise) against Linn and shall
remain undismissed or unstayed for a period of thirty (30) days, or any
judgment, writ, warrant, attachment, or execution or similar process shall be
issued or levied against any material asset of Linn and shall not be released,
vacated, stayed, or fully bonded within sixty (60) days after its issue or
levy.

iv)  Linn shall be declared, by written notice, to
be in default in the payment of any material indebtedness (as hereinafter
defined) owed by it and such failure shall remain unremedied on the expiration
of any grace or cure period provided for the payment thereof, unless such
failure to perform shall be 

 9
 

expressly waived in writing by the holder or holders
of such indebtedness; for the purpose of this clause (4) “indebtedness”
means:  (1) all indebtedness or other
obligation or liability (primary or secondary, fixed or contingent) for
borrowed money or for the deferred purchase price of property or services and
(2) all indebtedness or other obligations for borrowed money or for the deferred
purchase price of property or services secured by (or for which the holder of
such indebtedness has an existing right, contingent or otherwise, to be secured
by) any mortgage, deed of trust, pledge, lien, security interest, or other
charge or encumbrance upon or in property (including, without limitation
accounts and contract rights) owned by Linn whether or not Linn has assumed or
become liable for the repayment of such indebtedness or obligations.

(d)  With respect to the termination events in 5(b)(ii),
(iii) or (iv) or 5(c)(ii), (iii) or (iv), termination will be effective upon
receipt of written notice.  With respect
to all other termination events, if the default is not cured within ten (10)
business days after receiving written notice, the non-defaulting party may
terminate the Agreement upon delivery of written notice on or after such ten
(10) business day period.  It is agreed
that if either party exercises its right to terminate this Agreement for any of
the reasons herein, the termination shall not prejudice any other right or
remedy available to the other party.

(e)  Upon effective date of any termination of
this Agreement, Stallion shall convey or cause Cavallo to convey to Linn
Operating any vehicles constituting part of the Assets that were not assigned
at Closing, and to the Linn Affiliate designated by Linn any service contracts
constituting part of the Assets that were not assigned at Closing.

6.          Confidentiality

(a)  As a result of this Agreement and the
performance of services and the other agreements contemplated hereunder, there
has been and there will be divulged and disclosed to each party hereto
information with respect to the business affairs, properties, operations,
finances, marketing, methodology and techniques, processes, capabilities and
other data and matters of a proprietary and confidential nature of the other
party (collectively “Confidential
Information”).  The
Confidential Information of one party shall not include information:

i)  which is already known to the other party
prior to the disclosure thereof by such party to the other party;

ii)  which is a matter of public record or
generally available to the public other than as a result of a breach of this
Agreement;

iii)  which is legally required by subpoena, order,
decree, regulation, rule or otherwise to be disclosed to a governmental agency
or court of competent jurisdiction, if the party proposing to disclose or
divulge the same has given to the 

 10
 

other party
reasonable notice of the pendency of such subpoena, order, decree, regulation,
rule or other requirement and the opportunity to contest it; or

iv)  which is rightfully acquired independently
from a third party without breach of this Agreement.

Confidential Information may be written, oral,
recorded or contained on tape or on other electronic or mechanical media.

(b)  The party who has heretofore received or who
hereafter receives as a result of this Agreement or the performance of services
hereunder Confidential Information of or with respect to the other party shall
hold such Confidential Information in strict confidence and shall not disclose
or divulge the same to any third party or use it for any purpose other than as
authorized by this Agreement and such other party.  Each party will use its best efforts and endeavors
and will employ all reasonable steps to protect the Confidential Information of
or with respect to the other party from unauthorized or inadvertent disclosure
and will disclose and divulge the same only to its own officers, employees,
agents and representatives having a need to know and utilize the same in the
performance of this Agreement.

(c)  Each party shall be deemed to be the owner of
all Confidential Information disclosed by it hereunder to the other party,
including all proprietary rights and interests therein, and nothing contained
herein shall be deemed or construed to constitute a grant of any rights, by
license or otherwise, in or to any Confidential Information.  The Confidential Information of a party
hereto shall not be used by the other party hereto for any purpose adverse to
or in competition with the owner of such Confidential Information.

7.          Indemnity

(a)  THE LINN PARTIES SHALL DEFEND, INDEMNIFY AND
HOLD HARMLESS STALLION, ITS AFFILIATES AND THEIR RESPECTIVE EMPLOYEES,
OFFICERS, DIRECTORS, MEMBERS, PARTNERS, STOCKHOLDERS, AGENTS AND SIMILARLY
SITUATED PERSONS, FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, DEMANDS,
LIABILITIES OR CAUSES OF ACTION FROM THIRD PARTY CLAIMS (“CLAIMS”) FOR DIRECT
DAMAGES (EXPRESSLY EXCLUDING CONSEQUENTIAL, INCIDENTAL OR PUNITIVE, OR ANY LOST
REVENUES OR PROFITS, EXCEPT ANY SUCH DAMAGES THAT ARE PAYABLE TO A THIRD
PARTY), AS INCURRED BY ANY INDEMNIFIED PARTY, RELATING TO OR ARISING OUT OF THE
PROVISION OF SERVICES BY STALLION PURSUANT TO THIS AGREEMENT, INCLUDING ANY
DAMAGES RESULTING FROM THE NEGLIGENCE OF ANY INDEMNIFIED PARTY; PROVIDED,
HOWEVER, THE FOREGOING INDEMNIFICATION OBLIGATION SHALL NOT APPLY TO THE EXTENT
THAT IT IS FINALLY JUDICIALLY DETERMINED THAT SUCH DAMAGES RESULTED FROM THE
INTENTIONAL BREACH OF CONTRACT, WILLFUL 

 11
 

MISCONDUCT OR
GROSS NEGLIGENCE OF ANY SUCH INDEMNIFIED PARTY.

(b)  Stallion shall notify Linn as soon as
practicable of any Claim that may be presented to or served upon it by any
party arising out of or as a result of work performed pursuant hereto,
affording Linn full opportunity to assume the defense of such Claim and to
protect itself under the obligations of this Paragraph 7.

(c)  Indemnification
Despite Negligence.  It is the express intention of
the parties hereto that each party to be indemnified pursuant to this Paragraph
7 or other provision of this Agreement shall be indemnified and held harmless
from and against all Claims as to which indemnity is provided for under this
Paragraph 7 or other provision, notwithstanding that any such Claims arise out
of or result from the ordinary, strict, sole or contributory negligence of such
party and regardless of whether any other party is or is not also
negligent.  The parties hereto acknowledge
that the foregoing complies with the express negligence rule and is
conspicuous.

8.          Insurance.  Linn shall procure and maintain at its sole
expense during the term of this Agreement policies of insurance for the Assets
in accordance with Appendix E.  Upon
execution of this Agreement, Linn shall provide to Stallion evidence that Linn
has obtained the insurance required by this Paragraph 8 and that Linn has
caused Stallion to be named as an additional insured on such policies insofar
as same relate to the Assets. Upon request, Stallion shall have the right to
examine or inspect the originals or certified copies of said policies of
insurance in the offices of Linn during its normal business hours.

9.          Compliance with Laws.  In the performance by it of its services
hereunder, Stallion will comply with all applicable laws, rules and regulations
of any governmental entity or agency maintaining jurisdiction and authority in
connection therewith.

10.        Amendment.  This Agreement may be amended only by an
instrument in writing executed by each party or their respective Designated
Representative.

11.        Governing Law; Dispute Resolution;
and Parties in Interest

(a)  This Agreement has been negotiated and
executed and is performable in the State of Texas.  This Agreement shall be construed pursuant
to, and all disputes and controversies arising hereunder shall be governed by,
the laws of the State of Texas, without regard to the application of any
principles of conflicts of law.

(b)  All disputes arising out of or in connection
with the execution, interpretation or performance of this Agreement shall to
the fullest extent permitted by law, be solely and finally determined by
arbitration conducted in Houston, Texas, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association to the extent such
rules do not conflict with the terms hereof. 
The decision of the arbitrator(s) shall be reduced to writing and shall
be binding on the parties.  Judgment upon
any award so determined may be entered and executed in any court of competent
jurisdiction, or application may be made to such court for a judicial
acceptance 

 12
 

of the award
and an order of enforcement.  The costs
and expenses of such arbitration shall be borne in such manner as may be
determined by such arbitrator(s).

(c)  This Agreement shall be binding upon and
inure solely to the benefit of each party hereto, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other
person or party any right, benefit or remedy whatsoever under or by reason of
this Agreement.

12.        Notices and Payments

(a)  All notices herein provided to be given shall
be given in writing and shall be deemed to have been given only when received
by the party entitled to receive the same.

(b)  All notices herein provided to be given and all
payments herein provided to be made shall be given and made as follows:

If to a Linn Party:

Linn Energy, LLC

650 Washington Road, 8th Floor

Pittsburgh, PA  15228

Attention:  Roland P. Keddie

Facsimile
No.:  412-440-1499

With a copy to:

Vinson & Elkins LLP

1001 Fannin Street

2300 First City Tower

Houston, TX 77002

Attention: Jeffery K. Malonson

Facsimile No.: 713-615-5627

If to Stallion:

Stallion Energy, LLC, General Partner

411 West Richey Road

Houston, Texas 77090

Attn:  George P. SanFilippo

Facsimile No.:  281-873-8597

 13
 

13.        Non-Waiver

Either party’s failure to insist on performance of any
of the terms and conditions herein or to exercise any right or privilege or
such party’s waiver of any breach hereunder shall not thereafter waive any of
such party’s rights or privileges under this Agreement or at law.  Any waiver of any specific breach shall be
effective only if given expressly by the waiving party in writing.

14.        Non-Assignability

This Agreement and the rights and obligations of the
parties hereunder may not be assigned by either party, in whole or in part.

15.        Merger and Interpretation

(a)  This Agreement embodies the entire agreement
between the Linn Parties and Stallion. 
The parties shall not be bound by or liable for any statement, writing,
representation, promise, inducement, or understanding not set forth above.  No changes, modifications, or amendments of
any terms and conditions of this Agreement are valid or binding unless agreed
to by the parties in writing and signed by their authorized agents.

(b)  Each party to this Agreement and its counsel
have participated in the creation of this Agreement. The normal rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or
of any amendments or exhibits to this Agreement.

16.        Joint and Several Liability.

The Linn Parties shall be
jointly and severally liable for the obligations of any Linn Party
hereunder.  The Linn Parties hereby
designate Linn as their representative and agent for the purposes of this
Agreement.

[Signatures
on Following Page]

 

 14

EXECUTED as of the date above
recited.

	
   

  	
  LINN ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roland P. Keddie

  
	
   

  	
  Name: 

  	
  Roland P. Keddie

  
	
   

  	
  Title: 

  	
  Sr. Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  LINN ENERGY HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roland P. Keddie

  
	
   

  	
  Name: 

  	
  Roland P. Keddie

  
	
   

  	
  Title: 

  	
  Sr. Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  LINN OPERATING, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roland P. Keddie

  
	
   

  	
  Name: 

  	
  Roland P. Keddie

  
	
   

  	
  Title: 

  	
  Sr. Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  PENN WEST PIPELINE, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roland P. Keddie

  
	
   

  	
  Name: 

  	
  Roland P.
  Keddie

  
	
   

  	
  Title: 

  	
  Sr. Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  STALLION ENERGY LLC,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George P. SanFilippo

  
	
   

  	
  Name:
  

  	
  George P. SanFilippo

  
	
   

  	
  Title: 

  	
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]