Document:

Exhibit 10.5

 

LINN ENERGY, LLC

LONG-TERM INCENTIVE PLAN

FORM OF EXECUTIVE RESTRICTED UNIT GRANT
AGREEMENT

 

This Restricted Unit grant agreement (“Grant Agreement”) is made and entered into effective as
of [Grant Date], (the “Grant Date”)
by and between LINN ENERGY, LLC, a Delaware limited liability company (together
with its subsidiaries, the “Company”),
and [Executive] (“Participant”).

 

WHEREAS,
the Company considers it to be in its best interest that Participant be given a
proprietary interest in the Company and an added incentive to advance the
interests of the Company; and

 

WHEREAS,
the Company desires to accomplish such objectives by granting Participant
Restricted Units pursuant to the Employment Agreement and the Linn Energy, LLC
Long-Term Incentive Plan, which is attached hereto as Appendix A and
incorporated by reference herein (the “Plan”);

 

NOW,
THEREFORE, in consideration of the mutual agreements
hereinafter set forth, the parties hereby agree as follows:

 

1.             Grant
of Restricted Units.  The Company hereby grants to Participant
[          ] Restricted Units, under and
subject to the terms and conditions of this Grant Agreement and the Plan.

 

2.             Vesting
and Restricted Period.  Except as otherwise provided herein, the
Restricted Period with respect to one third (1/3) of the Restricted Units
granted hereby shall lapse on January 19,
[              ],
the Restricted Period with respect to an additional one third (1/3) of the
Restricted Units granted hereby shall lapse on January 19,
[              ],
and the Restricted Period with respect to the final one third (1/3) of the
Restricted Units granted hereby shall lapse on January 19,
[              ].  Upon the termination of the Restricted Period
with respect to a Restricted Unit, such Restricted Unit shall vest in full and
no longer be subject to forfeiture, and shall no longer be deemed a Restricted
Unit.

 

3.             General
Restrictions.  The
Restricted Units shall not be assignable or transferable except as expressly
provided in the Plan or by the Committee in its sole discretion.

 

4.             Termination
by Company other than for Cause.  Upon the termination by the Company of
Participant’s service relationship with the Company other than for Cause (as
defined herein and as determined by the Committee in its sole discretion), all
Restricted Periods established hereunder shall automatically and immediately
terminate and all outstanding Restricted Units granted hereby shall
automatically and immediately vest in full. 
“Cause” shall mean (a) Participant’s
conviction of, or plea of nolo contendere
to, any felony, any crime or offense causing substantial harm to the Company
(whether or not for personal gain) or involving acts of theft, fraud,
embezzlement, moral turpitude or similar conduct; (b) Participant’s
repeated intoxication by alcohol or drugs during the performance of his or her
duties; (c) malfeasance in the conduct of Participant’s duties, including,
but not limited to, (i) willful and intentional misuse or diversion of any
Company funds, (ii) embezzlement or (iii) fraudulent or willful and
material 

 

 

misrepresentations or concealments on any written reports submitted to
the Company; (d) Participant’s material failure to perform the duties of
Participant’s employment or service relationship consistent with Participant’s
position or material failure to follow or comply with the reasonable and lawful
written directives of the Board of the Company; or (e) a material breach
by Participant of the written policies of the Company concerning employee
discrimination or harassment.

 

5.             Termination
by Participant with Good Reason.  Upon the termination by Participant of
Participant’s service relationship with the Company with Good Reason (as
defined herein), all Restricted Periods established hereunder shall
automatically and immediately terminate and all outstanding Restricted Units
granted hereby shall automatically and immediately vest in full.  “Good
Reason” shall mean any of the following to which Participant
does not consent in writing: (a) a reduction in Participant’s base salary;
(b) a relocation of Participant’s primary place of employment to a
location more than 50 miles from [Houston, Texas]/[Pittsburgh, Pennsylvania];
or (c) any material reduction in Participant’s title, authority or
responsibilities as [Title] of the Company.

 

6.             Death
or Disability.  In the case of termination of Participant’s
service relationship with the Company due to death or Disability (as defined
herein), all Restricted Periods established hereunder shall automatically and
immediately terminate and all outstanding Restricted Units granted hereby shall
automatically and immediately vest in full. 
“Disability” shall
mean the determination by a physician selected by the Company that Participant
has been unable to perform substantially Participant’s usual and customary
duties for a period of at least one hundred twenty (120) consecutive days or a
non-consecutive period of one hundred eighty (180) days during any twelve-month
period as a result of incapacity due to mental or physical illness or disease.

 

7.             Change
of  Control.  Notwithstanding anything in the Plan to the
contrary, in the event of a Change of Control (as defined in the Employment
Agreement), all Restricted Periods established hereunder shall automatically
and immediately terminate and all outstanding Restricted Units granted hereby
shall automatically and immediately vest in full.

 

8.             Termination
by Company for Cause or by Participant without Good Reason.  In the case of (a) termination by the
Company of Participant’s service relationship with the Company for Cause or (b) termination
by Participant of Participant’s service relationship with the Company without
Good Reason and other than due to Participant’s death or Disability, all
outstanding Restricted Units granted hereby shall be automatically and
immediately forfeited, and Participant hereby agrees to undertake any action
and execute any document, instrument or papers reasonably requested by the
Company to effect such forfeiture of Restricted Units resulting from any such
termination.

 

9.             Plan
Controlling Document.  Unless otherwise defined herein, capitalized
terms shall have the meaning given such terms in the Plan.  Participant agrees that the Plan is the
controlling instrument and that to the extent there is any conflict between the
terms of the Plan and this Grant Agreement, the Plan shall control and be the
governing document.

 

2

 

10.          Limited
Liability Company Agreement.  Participant agrees to be bound by all
applicable provisions of the Company’s limited liability company agreement, as
it may be amended from time to time.

 

11.          Taxes.  The Company and any affiliate thereof are
authorized to withhold from any payment relating to the Restricted Units
granted hereby, or any payroll or other payment to Participant, amounts of
withholding and other taxes due or potentially payable in connection with the
Restricted Units granted hereby, and to take such other action as the Committee
may deem advisable to enable the Company, any affiliate, and Participant to
satisfy obligations for the payment of withholding taxes and other tax
obligations relating to the Restricted Units granted hereby.  This authority shall include authority to
withhold or receive Units or other property and to make cash payments in
respect thereof in satisfaction of Participant’s tax obligations, either on a
mandatory or elective basis in the discretion of the Committee.

 

12.          Issuance
of Units.  The
Company shall not be obligated to issue any Restricted Units at any time when
the Restricted Units have not been registered under the Securities Act of 1933,
as amended, and such other state and federal laws, rules or regulations as
the Company or the Committee deems applicable and, in the opinion of legal
counsel for the Company, there is no exemption from the registration
requirements of such laws, rules or regulations available for the issuance
of such Restricted Units.

 

13.          Notices.  Any notices given in connection with this
Grant Agreement shall, if issued to Participant, be delivered to Participant’s
current address on file with the Company, or if issued to the Company, be
delivered to the Company’s principal offices.

 

14.          Execution
of Receipts and Releases.  Any payment of cash or any issuance or
transfer of Restricted Units or other property to Participant, or to
Participant’s legal representatives, heirs, legatees or distributees, in
accordance with the provisions hereof, shall, to the extent thereof, be in full
satisfaction of all claims of such persons hereunder.  The Company may require Participant or
Participant’s legal representatives, heirs, legatees or distributees, as a
condition precedent to such payment or issuance, to execute a release and
receipt therefor in such form as it shall determine.

 

15.          Successors.  This Grant Agreement shall be binding upon
Participant, Participant’s legal representatives, heirs, legatees and
distributees, and upon the Company, its successors and assigns.

 

[Remainder of
this page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties
hereto have executed this Grant Agreement to be effective as of the day and
year first above written.

 

 

	
   

  	
  LINN ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  [                                              ]

  	
   

  
	
   

  	
  Title:

  	
  [                                              ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  

 

4Exhibit
10.12

 

EXECUTION
COPY

 

EMPLOYMENT AGREEMENT

 

March 22. 2007

 

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

 

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

 

1.    Position
and Duties

 

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

 

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

 

 

interfere with the
performance of her obligations to the Company or Linn Energy under this
Agreement.

 

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

 

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

 

3.    Compensation.

 

3.1       Base Salary.  During
the Employment Term, the Employee will be entitled to receive a base salary (“Base
Salary”)  at
an annual rate of not less than $200,000 for services rendered to the Company
and any of its direct or indirect subsidiaries, payable in accordance with the
Company’s regular payroll practices. The Employee’s Base Salary will be
reviewed annually by the Board and may be adjusted upward in the Board’s sole
discretion.

 

3.2       Bonus Compensation.  (a)  The Employee will be entitled to a
one-time bonus (the “One-Time Bonus”) in the amount of $120,000, (1/2) payable within thirty (30) days after the Effective Date
and (1/2) payable on the first anniversary of the Effective Date. (b) The
Employee will also be entitled to receive a guaranteed bonus (“Guaranteed Bonus”)
payment of not less than $125,000 with respect to the Company’s fiscal year
ending December 31, 2007. Thereafter, during the Employment Term, the
Employee will be entitled to receive incentive compensation in such amounts and
at such times as the Board may determine in its sole discretion to award to her
under any incentive compensation or other bonus plan or arrangement as may be
established by the Board from time to time (collectively, the “Employee Bonus Plan”). Any
additional incentive compensation payable under any Employee Bonus Plan will be
referred to in the aggregate in this Agreement as the Employee’s “Bonus.”

 

3.3       Long-Term Incentive Compensation.

 

(a)        Unit Options.  As of the Effective Date, the Employee will
receive an award of non-qualified options to purchase up to 30,000 Units of
Linn Energy at a per share exercise price equal to the fair market value of a
Unit as of the date of grant, which shall be awarded under the terms of the
Linn Energy, LLC Long Term Incentive Plan or any successor plan, as it may be
in effect from time to time (the “Incentive Plan”), and subject to a
service-based vesting schedule and such other terms and conditions set forth in
the applicable option agreement.

 

(b)        Restricted Units.  As of the Effective Date, the Employee will
receive a restricted Unit award in the amount of 30,000 Units of Linn Energy,
which shall be awarded under the terms of the Incentive Plan, and subject to a
service-based vesting schedule and such other terms and conditions set forth in
the applicable restricted unit agreement.

 

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

 

2

 

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

 

4.    Expenses and Other Benefits.

 

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

 

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

 

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

 

5.    Termination of Employment.

 

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

 

5.2       Termination by the Company.

 

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

 

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

 

3

 

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

 

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

 

5.3       Termination by the Employee.

 

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

 

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

 

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

 

5.4       Notice of Termination.
 Any termination of the Employee’s
employment by the Company or by the Employee during the Employment Term (other
than termination pursuant to Section 5.1) will be communicated by
written Notice of Termination to the other party hereto in accordance with Section 7.7.
For purposes of this Agreement, a “Notice
of Termination” means a written notice that (a) indicates the
specific termination provision in this Agreement relied upon, (b) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee’s employment under
the provision so indicated, and (c) if the Termination Date (as defined
herein) is other than the date of receipt of such notice, specifies the
Termination Date (which Termination Date will be not more than thirty (30) days
after the giving of such notice).

 

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

 

4

 

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

 

6.    Compensation of the Employee upon Termination.

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

(b)  Change of
Control Benefits. Subject to the provisions of Section 6,4(d),
if within the one (1)-year period following the occurrence of a Change of
Control, the Company terminates the Employee’s employment without Cause, or the
Employee terminates her employment for Good Reason (an “Eligible Termination”),
then, in lieu of the Severance Benefits under Section 6.4(a), the
Employee will be entitled to benefits (the “Change
of Control Benefits”)  identical to those set forth in Section 6.4(a) except
that the amount described in clause (ii) will be paid in a lump sum within
thirty (30) days following the Termination Date and will be equal to
twenty-four (24) monthly payments.

 

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

 

(i)        The acquisition by any individual, entity or group (within the meaning
of Section 13(d) (3) or 14(d) (2) of the Exchange Act)
(a “Person”)  of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 35% or more of either
(A) the then-outstanding equity interests of Linn Energy (the “Outstanding Linn Energy Equity”)  or
(B) the combined voting power of the then-outstanding voting securities of
Linn Energy entitled to vote generally in the election of directors (the “Outstanding Linn Energy Voting Securities”);  provided,
however, that, for purposes of this Section 6.4(c)(i), the
following acquisitions will not constitute a Change of Control: (A) any
acquisition directly from Linn Energy, (B) any acquisition by Linn Energy,
(C) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by Linn Energy or any affiliated company, or
(D) any acquisition by any corporation or other entity pursuant to a
transaction that complies with Section 6.4(c)(iii)(A), Section 6.(c)(iii)(B) or Section 6.4(c)(iii)(C);

 

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

 

7

 

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

 

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

 

(d)  Conditions
to Receipt of Severance Benefits.

 

(i)         Release.  As a condition to receiving any Severance Benefits or Change of Control
Benefits to which the Employee may otherwise be entitled under Section 6.4(a) or
Section 6.4(b), the Employee will execute a release (the “Release”), which will
include a non-disparagement provision, in a form and substance satisfactory to
the Company, of any claims, whether arising under federal, state or local
statute, common law, or otherwise, against the Company and its direct or
indirect subsidiaries, which arise or may have arisen on or before the date of
the Release, other than any claims under this Agreement or any rights to
indemnification from the Company and its direct or indirect subsidiaries
pursuant to any provisions of the Company’s (or any of its subsidiaries’)
organizational documents or any directors and officers liability insurance policies
maintained by the Company. If the Employee fails or otherwise refuses to
execute a Release within a reasonable time of not less than 21 days after the
Company’s request to do so, and in all events prior to the date on which such
benefits are to be first paid to her, the Employee will not be entitled to any

 

8

 

Severance Benefits or Change
of Control Benefits, as the case may be, or any other benefits provided under
this Agreement and the Company will have no further obligations with respect to
the provision of those benefits except as may be required by law.

 

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

 

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

 

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

 

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

 

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

 

7.    Miscellaneous.

 

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

 

7.2       Modification and Waiver.
 Except as otherwise provided below, no
provision of this Agreement may be modified, waived, or discharged unless such
waiver, modification or discharge is duly approved by the Board and is agreed
to in writing by the Employee and such officer(s) as may be specifically
authorized by the Board to effect it.  No waiver by any party of any
breach by any other party of, or of compliance with, any term or condition of
this Agreement

 

9

 

to be performed by any other
party, at any time, will constitute a waiver of similar or dissimilar terms or
conditions at that time or at any prior or subsequent time.

 

7.3       Entire Agreement.  This Agreement embodies the entire
understanding of the parties hereof, and, upon the Effective Date, will
supersede all other oral or written agreements or understandings between them
regarding the subject matter hereof. No agreement or representation, oral or
otherwise, express or implied, with respect to the subject matter of this
Agreement, has been made by either party which is not set forth expressly in
this Agreement.

 

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

 

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

 

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

 

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

 

to the Company, to:

 

Attn: General Counsel

Linn Energy, LLC

650 Washington Road,
Suite 500

 

10

 

Pittsburgh,
Pennsylvania  15228

 

to the Employee, to:

 

Charlene A, Ripley

94 E, Bracebridge Circle

The Woodlands, Texas 77381

 

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

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

	
   

  	
  LINN OPERATING, INC.

  
	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. Linn

  	
   

  
	
   

  
	
   

  	
  Name:

  	
  Michael C. Linn

  	
   

  
	
   

  	
  Title:

  	
  Chairman, President and Chief Executive

  
	
   

  	
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  /s/ Charlene A. Ripley

  	
   

  
	
   

  	
  Charlene A. Ripley

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  For the limited purposes set forth herein: 

  
	
   

  	
   

  	
   

  
	
   

  	
  LINN ENERGY, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. Linn

  	
   

  
	
   

  	
  Name:

  	
  Michael C. Linn

  	
   

  	
   

  
	
   

  	
  Title:    Chairman, President and Chief Executive 

  Officer

  
										

 

12

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