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EXHIBIT 10.7    
    

Execution Version  

FIRST AMENDMENT 

TO 

CREDIT
AGREEMENT 

Among 

LINN ENERGY, LLC
 as Borrower, 

ROYAL BANK OF CANADA,
 as Administrative Agent, 

and

The
Lenders Signatory Hereto 

Effective
as of November 22, 2005 

 
FIRST AMENDMENT TO CREDIT AGREEMENT AND CONSENT 

        This First Amendment to Credit Agreement (this "First Amendment") executed effective as of the 22nd of November,
2005 (the "First Amendment Effective Date") is among Linn Energy, LLC (formerly known as Linn Energy Holdings, LLC), a limited liability
company formed under the laws of the State of Delaware (the "Borrower"); each of the undersigned guarantors (the  "Guarantors", and together with the
Borrower, the "Obligors"); each of the Lenders that is a signatory
hereto; Royal Bank of Canada, as administrative agent for the Lenders (in such capacity, together with its successors, the "Administrative Agent") and
BNP Paribas, as senior administrative agent pursuant to that certain Credit Agreement dated April 13, 2005 (as amended from time to time, the "Senior Credit
Agreement") among Borrower, the Guarantors, the lenders party thereto and BNP Paribas, as administrative agent for such lenders (in such capacity, together with its successors,
the "Senior Administrative Agent"). 

Recitals 

        A.    The
Borrower, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of October 27, 2005 (the  "Credit Agreement"), pursuant to which the Lenders have made
certain credit available to and on behalf of the Borrower. 

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

        C.    The
Senior Administrative Agent has consented to the amendment of the Credit Agreement. 

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

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

 
 
        Section 2.    Amendments to Credit Agreement.     

 
 
        2.1    Definitions.     The definition of "Consolidated Net Income" in Section 1.02 is hereby amended by
inserting the following section (f) after the semicolon following
section (e): 

	

	"and
(f) any loss or gain resulting from the cancellation/monetization of Swap Agreements in place, provided that the Borrower is in compliance with
all other covenants and provided further that no such gain or loss shall be excluded if such gain or loss occurs after the earlier of (i) the Initial Public Offering and
(ii) December 31, 2005;" 

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

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

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

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

 
 
        Section 4.    Representations and Warranties; Etc.     Each Obligor hereby affirms: (a) that as of the
date of execution and delivery of this First Amendment, all of the representations and warranties contained
in each Loan Document to which such Obligor is a party are true and correct in all material 

Page 2

 

respects
as though made on and as of the First Amendment Effective Date (unless made as of a specific earlier date, in which case, was true as of such date); and (b) that after giving effect to
this First Amendment and to the transactions contemplated hereby, no Defaults exist under the Loan Documents or will exist under the Loan Documents. 

 
 
        Section 5.    Miscellaneous.     

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

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

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

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

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

Page 3

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

	BORROWER:	LINN ENERGY, LLC
	

 	

By:	

/s/  KOLJA ROCKOV      
 Kolja Rockov

Executive Vice President & Chief Financial Officer
	

 	

 	

 

First Amendment

Signature Page - 1

 

	

GUARANTORS:	

LINN ENERGY HOLDINGS, LLC
	

 	

By:	

/s/  KOLJA ROCKOV      
 Kolja Rockov

Executive Vice President & Chief Financial Officer
	

 	

LINN OPERATING, INC.
	

 	

By:	

/s/  KOLJA ROCKOV      
 Kolja Rockov

Executive Vice President & Chief Financial Officer
	

 	

MID ATLANTIC WELL SERVICING, INC.
	

 	

By:	

/s/  KOLJA ROCKOV      
 Kolja Rockov

Executive Vice President & Chief Financial Officer
	

 	

 	

 

First Amendment

Signature Page - 2

 

	

ADMINISTRATIVE AGENT:	

ROYAL BANK OF CANADA,

as Administrative Agent
	

 	

By:	

/s/  DAVID WHEATLEY      

	 	Name:	David Wheatley
	 	Title:	Manager, Agency
	

LENDERS:	

ROYAL BANK OF CANADA
	

 	

By:	

/s/  LORNE A. GARTNER      

	 	Name:	Lorne A. Gartner
	 	Title:	Authorized Signatory
	

 	

SOCIÉTÉ GÉNÉRALE
	

 	

By:	

/s/  STEPHEN W. WARFEL      

	 	Name:	Stephen W. Warfel
	 	Title:	Vice President
	

 	

 	

 

First Amendment

Signature Page - 3

 

	

The foregoing First Amendment is consent to by the undersigned as of the date first written above.
	

SENIOR ADMINISTRATIVE AGENT:	

BNP PARIBAS,

as Administrative Agent
	

 	

By:	

/s/  BETSY JOCHER      

	 	Name:	Betsy Jocher
	 	Title:	Vice President
	

 	

By:	

/s/  GABE ELLISOR      

	 	Name:	Gabe Ellisor
	 	Title:	Vice President

First Amendment

Signature Page - 4

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EXHIBIT 10.7

Section 1. Defined Terms.

Section 2. Amendments to Credit Agreement.

2.1 Definitions.

Section 3. Conditions Precedent.

3.1 Payment of Outstanding Invoices.

3.2 First Amendment.

3.3 No Default.

Section 4. Representations and Warranties; Etc.

Section 5. Miscellaneous.

5.1 Confirmation.

5.2 Ratification and Affirmation of Obligors.

5.3 Counterparts.

5.4 No Oral Agreement.

5.5 Governing Law.QuickLinks
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Exhibit 10.10    
    

FORM OF  

 LINN ENERGY, LLC

LONG-TERM INCENTIVE PLAN  

1.     Purpose of the Plan.  

        The Linn Energy Long-Term Incentive Plan (the "Plan") is intended to promote the interests of Linn
Energy, LLC, a Delaware limited liability company (the "Company"), by providing to employees, consultants, and directors of the Company and its
Affiliates incentive compensation awards for superior performance that are based on Units. The Plan is also contemplated to enhance the ability of the Company and its Affiliates to attract and retain
the services of individuals who are essential for the growth and profitability of the Company and to encourage them to devote their best efforts to advancing the business of the Company. 

2.     Definitions.  

        As used in the Plan, the following terms shall have the meanings set forth below: 

        "Affiliate" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls,
is controlled by or is under common control with, the Person in question. As used herein, the term "control" means the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

        "Award" means an Option, Restricted Unit, Unit Grant, Phantom Unit or Unit Appreciation Right granted under the Plan, and shall include
tandem DERs granted with respect to an Option, Phantom Unit or Unit Appreciation Right. 

        "Award Agreement" means the written agreement by which an Award shall be evidenced. 

        "Board" means the Board of Directors of the Company. 

        "Change of Control" means the occurrence of any of the following events: 

        (i)    the
acquisition by any "person," as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the  "Exchange Act"), other than the Company or an Affiliate of the
Company, of "beneficial ownership" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing more than 35% of the combined voting power of the Company's then outstanding securities entitled to vote generally in
the election of directors; provided, however, that any acquisition of securities from QEP will be disregarded for purposes of determining whether a Change of Control has occurred; or 

        (ii)   the
consummation of a reorganization, merger, consolidation or other form of business transaction or series of business transactions, in each case, with respect to
which persons who were the members of the Company immediately prior to such reorganization, merger or consolidation or other transaction do not, immediately thereafter, own more than 50% of the
combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company's then outstanding voting securities; or 

        (iii)  the
sale, lease or disposition (in one or a series of related transactions) by the Company of all or substantially all the Company's assets to any Person or its
Affiliates, other than the Company or its Affiliates; or 

        (iv)  a
change in the composition of the Board, as a result of which fewer than a majority of the directors are Incumbent Directors. "Incumbent Directors" shall mean
directors who either (A) are directors of the Company as of the effective date of the initial public offering of the Company's equity interests, or (B) are elected, or nominated for
election, thereafter to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of 

 

such election
or nomination or (C) are among the five original independent directors of the Company, but "Incumbent Director" shall not include an individual whose election or nomination
is in connection with (i) an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or an
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board or (ii) a plan or agreement to replace a majority of the then Incumbent Directors; or 

        (v)   the
approval by the Board or the members of the Company of a complete or substantially complete liquidation or dissolution of the Company. 

        Solely
with respect to any Award that is subject to Section 409A of the Code and to the extent that the definition of change of control under Section 409A applies to
limited liability companies, this definition is intended to comply with the definition of change of control under Section 409A of the Code as in effect commencing January 1, 2005 and, to
the extent that the above definition does not so comply, such definition shall be void and of no effect and, to the extent required to ensure that this definition complies with the requirements of
Section 409A of the Code, the definition of such term set forth in regulations or other regulatory guidance issued under Section 409A of the Code by the appropriate governmental
authority is hereby incorporated by reference into and shall form part of this Plan as fully as if set forth herein verbatim and the Plan shall be operated in accordance with the above definition of
Change of Control as modified to the extent necessary to ensure that the above definition complies with the definition prescribed in such regulations or other regulatory guidance insofar as the
definition relates to any Award that is subject to Section 409A of the Code. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Committee" means the Compensation Committee of the Board or such other committee of the Board as may be appointed by the Board to
administer the Plan. 

        "Consultant" means an individual, other than an Employee or a Director, providing bona fide services to the Company or any of its
Affiliates as a consultant or advisor, as applicable, provided that such individual is a natural person and that such services are not in connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly promote or maintain a market for any securities of the Company. 

        "DER" or "Distribution Equivalent Right" means a contingent right, granted in tandem with
a specific Option, Unit Appreciation Right or Phantom Unit, to receive an amount in cash equal to the cash
distributions made by the Company with respect to a Unit during the period such tandem Award is outstanding. 

        "Director" means a member of the Board who is not an Employee. 

        "Employee" means any employee of the Company or an Affiliate who perform services for the Company and its Affiliates. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Fair Market Value" means the closing sales price of a Unit on the applicable date (or if there is no trading in the Units on such date,
on the next preceding date on which there was trading) as reported in The Wall Street Journal (or other reporting service approved by the Committee). In
the event Units are not publicly traded at the time a determination of fair market value is required to be made hereunder, the determination of fair market value shall be made in good faith by the
Committee. 

2

 

        "LLC Agreement" means the Second Amended and Restated Limited Liability Company Agreement of Linn Energy, LLC, as it may be
subsequently amended or restated from time to time. 

        "Option" means an option to purchase Units granted under the Plan. 

        "Participant" means any Employee, Consultant or Director granted an Award under the Plan. 

        "Person" means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization,
association, government agency or political subdivision thereof or other entity. 

        "Phantom Unit" means a phantom (notional) Unit granted under the Plan which upon vesting entitles the Participant to receive a Unit or an
amount of cash equal to the Fair Market Value of a Unit. Whether cash or Units are received for Phantom Units shall be determined in the sole discretion of the Committee and shall be set forth in the
Award Agreement. 

        "QEP" means Quantum Energy Partners II, LP, a Delaware limited partnership. 

        "Restricted Period" means the period established by the Committee with respect to an Award during which the Award remains subject to
forfeiture or is either not exercisable by or payable to the Participant, as the case may be. 

        "Restricted Unit" means a Unit granted under the Plan that is subject to a Restricted Period. 

        "Rule 16b-3" means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any successor rule
or regulation thereto as in effect from time to time. 

        "SEC" means the Securities and Exchange Commission, or any successor thereto. 

        "UDR" or "Unit Distribution Right" means a distribution made by the Company with respect
to a Restricted Unit. 

        "Unit" means a Unit of the Company. 

        "Unit Appreciation Right" means an Award that, upon exercise, upon exercise, entitles the holder to receive the excess of the Fair Market
Value of a Unit on the exercise date over the exercise price established for such Unit Appreciation Right. Such excess may be paid in cash and/or in Units as determined in the sole discretion of the
Committee and set forth in the Award Agreement. 

        "Unit Grant" means an Award of an unrestricted Unit. 

3.     Administration.  

        The Plan shall be administered by the Committee. A majority of the Committee shall constitute a quorum, and the acts of the members of the Committee who are
present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in writing, shall be the acts of the Committee. Subject to the terms of the
Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: (i) designate
Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be covered by Awards; (iv) determine the terms and
conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and administer the
Plan and any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem
appropriate for the proper administration of the Plan; and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration
of 

3

 

the
Plan. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the
sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, any Affiliate, any Participant, and any beneficiary of
any Award. 

4.     Units.  

 
 
        (a)    Limits on Units Deliverable.     Subject to adjustment as provided in Section 4(c), the maximum number
of Units that may be delivered or reserved for delivery or underlying any Award with
respect to the Plan is 600,000, except that no more than 150,000 Units in the aggregate may be issued under the Plan as Restricted Units. If any Award expires, is canceled, exercised, paid or
otherwise terminates without the delivery of Units, or if the maximum number of Units delivered is reduced for any reason other than tax withholding or payment of the exercise price, then the Units
covered by such Award, to the extent of such expiration, cancellation, exercise, payment or termination, shall again be Units with respect to which Awards may be granted. Units that cease to be
subject to an Award because of the exercise of the Award, or the vesting of Restricted Units or similar Awards, shall no longer be subject to or available for any further grant under this Plan.
Notwithstanding the foregoing, there shall not be any limitation on the number of Awards that may be granted under the Plan and paid in cash. 

 
 

           (b)    Sources of Units Deliverable Under Awards.     Any Units delivered pursuant to an Award shall consist,
 in whole or in part, of Units acquired in the open market, from any Affiliate, the Company or any other
Person, newly issued Units or any combination of the foregoing as determined by the Committee in its sole discretion. 

 
 

          (c)    Adjustments.     In the event that the Committee determines that any distribution (whether in the form
of cash, Units, other securities, or other property), recapitalization,
split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Company, issuance of
warrants or other rights to purchase Units or other securities of the Company, or other similar transaction or event affects the Units such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem
equitable, adjust any or all of (i) the number and type of Units (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of Units (or
other securities or property) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the
holder of an outstanding Award; provided, that the number of Units subject to any Award shall always be a whole number and, provided further, that the Committee shall not take any action otherwise
authorized under this subparagraph (c) to the extent that (i) such action would cause (A) the application of Section 409A of the Code to the Award or (B) create
adverse tax consequences under Section 409A of the Code should that Code section apply to the Award or (ii) except as permitted in Section7(c), materially reduce the benefit to the
Participant without the consent of the Participant. 

5.     Eligibility.  

        Any Employee, Consultant or Director shall be eligible to be designated a Participant and receive an Award under the Plan. 

6.     Awards.  

 
 
        (a)    Options.     The Committee shall have the authority to determine the Employees, Consultants and Directors to
whom Options shall be granted, the number of Units to be covered
by each Option, 

4

 

whether
DERs are granted with respect to such Option, the purchase price therefor and the conditions and limitations applicable to the exercise of the Option, including the following terms and
conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan. 

 
 

           (i)    Exercise Price.     The purchase price per Unit purchasable under an Option shall be determined by
the Committee at the time the Option is granted, provided such purchase price may
not be less than its Fair Market Value as of the date of grant. 

 
 

           (ii)    Time and Method of Exercise.     The Committee shall determine the time or times at which an Option
may be exercised in whole or in part, which may include, without limitation, accelerated
vesting upon the achievement of specified performance goals, and the method or methods by which payment of the exercise price with respect thereto may be made or deemed to have been made, which may
include, without limitation, cash, check acceptable to the Company, a "cashless-broker" exercise through procedures approved by the Company, with the consent of the Committee, the withholding of Units
that would otherwise be delivered to the Participant upon the exercise of the Option, other securities or other property, or any combination thereof, having a fair market value (as determined by the
Committee) on the exercise date equal to the relevant exercise price. 

 
 

          (iii)    Forfeiture.     Except as otherwise provided in the terms of the Award Agreement, upon termination
of a Participant's employment with or consulting services to the Company and
its Affiliates or membership on the Board, whichever is applicable, for any reason prior to the date an Option becomes exercisable, all Options shall be forfeited by the Participant. The Committee may
in its discretion, waive in whole or in part such forfeiture with respect to a Participant's Options. 

 
 

          (iv)    DERs.     To the extent provided by the Committee, in its discretion, a grant of Options may include
a tandem DER grant, which may provide that such DERs shall be credited
to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same vesting restrictions as the tandem Award, or be subject to such other provisions or
restrictions as determined by the Committee in its discretion. 

 
 

           (b)    Restricted Units and Unit Grants.     The Committee shall have the authority to determine the
Employees, Consultants and Directors to whom Restricted Units and Unit Grants shall be granted, the number
of Restricted Units and/or Unit Grants to be granted to each such Participant, the Restricted Period, the conditions under which the Restricted Units may become vested or forfeited, and such other
terms and conditions as the Committee may establish with respect to such Awards, including whether UDRs are granted with respect to Restricted Units. 

 
 

           (i)    UDRs.     To the extent provided by the Committee, in its discretion, a grant of Restricted Units may
provide that distributions made by the Company with respect to the
Restricted Units shall be subject to the same forfeiture and other restrictions as the Restricted Unit and, if restricted, such distributions shall be held, without interest, until the Restricted Unit
vests or is forfeited with the UDR being paid or forfeited at the same time, as the case may be. Absent such a restriction on the UDRs in the grant agreement, UDRs shall be paid to the holder of the
Restricted Unit without restriction. 

 
 

           (ii)    Forfeitures.     Except as otherwise provided in the terms of the Award Agreement, upon termination
of a Participant's employment with the Company and its Affiliates or membership
on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all outstanding Restricted Units awarded the Participant shall be automatically forfeited on such
termination. The Committee may in its discretion, waive in whole or in part such forfeiture with respect to a Participant's Restricted Units. 

5

 

 
 

           (iii)    Lapse of Restrictions.     Upon or as soon as reasonably practical following the vesting of each
Restricted Unit, subject to the provisions of  Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her Unit certificate so that the Participant then
holds an unrestricted Unit. 

 
 

           (c)    Phantom Units.     The Committee shall have the authority to determine the Employees, Consultants and
Directors to whom Phantom Units shall be granted, the number of Phantom Units
to be granted to each such Participant, the Restricted Period, the time or conditions under which the Phantom Units may become vested or forfeited, which may include, without limitation, the
accelerated vesting upon the achievement of specified performance goals, and such other terms and conditions as the Committee may establish with respect to such Awards, including whether DERs are
granted with respect to such Phantom Units. 

 
 

          (i)    DERs.     To the extent provided by the Committee, in its discretion, a grant of Phantom Units may
include a tandem DER grant, which may provide that such DERs shall be
credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same vesting restrictions as the tandem Award, or be subject to such other provisions or
restrictions as determined by the Committee in its discretion. Notwithstanding any other provision of the Plan to the contrary, any grant of DERs with respect to Phantom Units shall contain terms that
(i) are designed to avoid application of Section 409A of the Code to the Award or (ii) are designed to avoid adverse tax consequences under Section 409A should that Code
section apply. 

 
 

           (ii)    Forfeitures.     Except as otherwise provided in the terms of the Award Agreement, upon termination
of a Participant's employment with or consulting services to the Company and
its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all outstanding Phantom Units awarded the Participant shall be automatically
forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant's Phantom Units. 

 
 

           (iii)    Lapse of Restrictions.     Upon or as soon as reasonably practical following the vesting of each
Phantom Unit, subject to the provisions of Section 8(b), the Participant shall be
entitled to receive from the Company one Unit or cash equal to the Fair Market Value of a Unit, as determined by the Committee in its discretion. 

 
 

           (d)    Unit Appreciation Rights.     The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Unit Appreciation Rights shall be granted, the number of
Units to be covered by each grant and the conditions and limitations applicable to the exercise of the Unit Appreciation Right, including the following terms and conditions and such additional terms
and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan. 

 
 

           (i)    Exercise Price.     The exercise price per Unit Appreciation Right shall be not less than its Fair
Market Value as of the date of grant. 

 
 

           (ii)    Vesting/Time of Payment.     The Committee shall determine the time or times at which a Unit
Appreciation Right shall become vested and the time or times at which a Unit Appreciation Right
shall be paid in whole or in part. 

 
 

           (iii)    Forfeitures.     Except as otherwise provided in the terms of the Award Agreement, upon termination
of a Participant's employment with or services to the Company and its
Affiliates or membership on the Board, whichever is applicable, for any reason prior to vesting, all unvested Unit Appreciation Rights awarded the Participant shall be automatically forfeited on such
termination. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant's Unit Appreciation Rights, in which case, such Unit Appreciation Rights 

6

 

shall
be deemed vested upon termination of employment or service and paid as soon as administratively practical thereafter. 

 
 

           (iv)    Unit Appreciation Right DERs.     To the extent provided by the Committee, in its discretion, a
grant of Unit Appreciation Rights may include a tandem DER grant, which may provide that such DERs
shall be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same vesting restrictions as the tandem Unit Appreciation Rights Award, or be
subject to such other provisions or restrictions as determined by the Committee in its discretion. 

 
 

           (e)    General.     

 
 

           (i)    Awards May Be Granted Separately or Together.     Awards may, in the discretion of the Committee, be
granted either alone or in addition to, in tandem with, or in substitution for any other Award granted under
the Plan or any award granted under any other plan of the Company or any Affiliate. No Award shall be issued in tandem with another Award if the tandem Awards would result in adverse tax consequences
under Section 409A of the Code. Awards granted in addition to or in tandem with other Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the
same time as or at a different time from the grant of such other Awards or awards. 

 
 

           (ii)    Limits on Transfer of Awards.     

        (A)  Except
as provided in Section 6(e)(ii)(C) below, each Award shall be exercisable or payable only to the
Participant during the Participant's lifetime, or to the person to whom the Participant's rights shall pass by will or the laws of descent and distribution. 

        (B)  Except
as provided in Section 6(e)(ii)(C) below, no Award and no right under any such Award may be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be
void and unenforceable against the Company, the Company or any Affiliate. 

        (C)  To
the extent specifically provided by the Committee with respect to an Award, an Award may be transferred by a Participant without consideration to immediate family
members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. 

 
 

           (iii)    Term of Awards.     The term of each Award shall be for such period as may be determined by the
Committee, but shall not exceed 10 years. 

 
 

          (iv)    Unit Certificates.     All certificates for Units or other securities of the Company delivered under
the Plan pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Units or
other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such
restrictions. 

 
 

          (v)    Consideration for Grants.     Awards may be granted for such consideration, including services, as the
Committee determines. 

 
 

           (vi)    Delivery of Units or other Securities and Payment by Participant of Consideration.     Notwithstanding anything in the Plan or any grant agreement to the contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred for
any period during which, in the good faith determination of the Committee, the Company is not reasonably able to obtain 

7

 

Units
to deliver pursuant to such Award without violating the rules or regulations of any applicable law or securities exchange. No Units or other securities shall be delivered pursuant to any Award
until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award grant agreement (including, without limitation, any exercise price or tax withholding) is received
by the Company. 

 
 

          (vii)    Change of Control.     Unless specifically provided otherwise in the Award Agreement, upon a Change
of Control or such time prior thereto as established by the Committee, all
outstanding Awards shall automatically vest or become exercisable in full, as the case may be. In this regard, all Restricted Periods shall terminate and all performance criteria, if any, shall be
deemed to have been achieved at the maximum level. To the extent an Option or UAR is not exercised, or a Phantom Unit or Restricted Unit does not vest, upon the Change of Control, the Committee may,
in its discretion, cancel such Award or provide for an assumption of such Award or a replacement grant on substantially the same terms; provided, however, upon any cancellation of an Option or UAR
that has a positive "spread" or a Phantom Unit or Restricted Unit, the holder shall be paid an amount in cash and/or other property, as determined by the Committee, equal to such "spread" if an Option
or UAR or equal to the Fair Market Value of a Unit, if a Phantom Unit or Restricted Unit. 

7.     Amendment and Termination.  

        Except to the extent prohibited by applicable law: 

 
 

          (a)    Amendments to the Plan.     Except as required by the rules of the principal securities exchange on
which the Units are traded and subject to  Section 7(b) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner, including increasing
the number of Units available for Awards under the Plan, without the consent of any partner, Participant, other holder or beneficiary of an Award, or other Person. 

 
 

          (b)    Amendments to Awards Subject to Section 7(a).     The Committee may waive any conditions or
rights under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to  Section 7(c), in any Award shall materially reduce the benefit to Participant
without the consent of such Participant and no change may be made
which would cause any Participant to be subject to excise tax under Section 409A of the Code. 

 
 

          (c)    Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.     The Committee
is hereby authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or
nonrecurring events (including, without limitation, the events described in Section 4(c) of the Plan) affecting the Company or the financial
statements of the Company, or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made available to Participants under the Plan or such Award. 

8.     General Provisions.  

 
 
        (a)    No Rights to Award.     No Person shall have any claim to be granted any Award under the Plan, and there is
no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each recipient. 

 
 

           (b)    Tax Withholding.     The Company or any Affiliate is authorized to withhold from any Award, from any
payment due or transfer made under any Award or from any compensation or other
amount owing to a Participant the amount (in cash, Units, other securities, Units that would otherwise be issued pursuant to such Award or other property) of any applicable taxes payable in respect of
the 

8

 

grant
of an Award, its exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the
Company to satisfy its withholding obligations for the payment of such taxes. 

 
 

           (c)    No Right to Employment or Services.     The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Affiliate, to continue as a
consultant, or to remain on the Board, as applicable. Further, the Company or an Affiliate may at any time dismiss a Participant from employment or terminate a consulting relationship, free from any
liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award agreement or other agreement. 

 
 

           (d)    Governing Law.     The validity, construction, and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with the laws of the State
of Delaware without regard to its conflict of laws principles. 

 
 

          (e)    Section 409A of the Code.     Notwithstanding anything in this Plan to the contrary, any Award
granted under the Plan shall contain terms that (i) are designed to avoid application of
Section 409A of the Code to the Award or (ii) are designed to avoid adverse tax consequences under Section 409A of the Code should that section apply to the Award. If any Plan
provision or Award under the Plan would result in the imposition of an applicable tax under Section 409A of the Code and related regulations and pronouncements, that Plan provision or Award
will be reformed to avoid imposition of the applicable tax and no action taken to comply with Section 409A of the Code shall be deemed to adversely affect the Participant's rights to an Award
or to require the Participant's consent. 

 
 

           (f)    Severability.     If any provision of the Plan or any award is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any Person or Award, or
would disqualify the Plan or any award under any law deemed applicable by the Compensation Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it
cannot be construed or deemed amended without, in the determination of the Compensation Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, person or award and the remainder of the Plan and any such Award shall remain in full force and effect. 

 
 

           (g)    Other Laws.     The Committee may refuse to issue or transfer any Units or other consideration under
an Award if, in its sole discretion, it determines that the issuance or
transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Units are then traded, or entitle the
Company or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the
exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 

 
 

           (h)    No Trust or Fund Created.     Neither the Plan nor any award shall create or be construed to create a
trust or separate fund of any kind or a fiduciary relationship between the Company or any
participating Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any participating Affiliate pursuant to an Award,
such right shall be no greater than the right of any general unsecured creditor of the Company or any participating Affiliate. 

 
 

           (i)    No Fractional Units.     No fractional Units shall be issued or delivered pursuant to the Plan or any
Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated. 

9

 

 
 

           (j)    Headings.     Headings are given to the Sections and subsections of the Plan solely as a convenience
to facilitate reference. Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of the Plan or any provision thereof. 

 
 

           (k)    Facility Payment.     Any amounts payable hereunder to any person under legal disability or who, in
the judgment of the Committee, is unable to properly manage his financial affairs,
may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the Committee may select, and the Company shall be relieved of any further
liability for payment of such amounts. 

 
 

          (l)    Participation by Affiliates.     In making Awards to Consultants and Employees employed by an
Affiliate, the Committee shall be acting on behalf of the Affiliate, and to the extent the Company
has an obligation to reimburse the Affiliate for compensation paid to Consultants and Employees for services rendered for the benefit of the Company, such payments or reimbursement payments may be
made by the Company directly to the Affiliate, and, if made to the Company, shall be received by the Company as agent for the Affiliate. 

 
 

          (m)    Gender and Number.     Words in the masculine gender shall include the feminine gender, the plural
shall include the singular and the singular shall include the plural. 

 
 

           (n)    No Guarantee of Tax Consequences.     None of the Board, the Company, nor the Committee makes any
commitment or guarantee that any federal, state or local tax treatment will apply or be available to
any person participating or eligible to participate hereunder. 

9.     Term of the Plan.  

        The Plan shall be effective on the date of its approval by the Board and shall continue until the date terminated by the Board. However, unless otherwise
expressly provided in the Plan or in an applicable Award Agreement, any Award granted prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust, suspend,
discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date. 

10

QuickLinks

Exhibit 10.10

(a)  Limits on Units Deliverable.

(b)  Sources of Units Deliverable Under Awards.

(c)  Adjustments.

(a)  Options.

(i)  Exercise Price.

(ii)  Time and Method of Exercise.

(iii)  Forfeiture.

(iv)  DERs.

(b)  Restricted Units and Unit Grants.

(i)  UDRs.

(ii)  Forfeitures.

(iii)  Lapse of Restrictions.

(c)  Phantom Units.

(i)  DERs.

(ii)  Forfeitures.

(iii)  Lapse of Restrictions.

(d)  Unit Appreciation Rights.

(i)  Exercise Price.

(ii)  Vesting/Time of Payment.

(iii)  Forfeitures.

(iv)  Unit Appreciation Right DERs.

(e)  General.

(i)  Awards May Be Granted Separately or Together.

(ii)  Limits on Transfer of Awards.

(iii)  Term of Awards.

(iv)  Unit Certificates.

(v)  Consideration for Grants.

(vi)  Delivery of Units or other Securities and Payment by Participant of Consideration.

(vii)  Change of Control.

(a)  Amendments to the Plan.

(b)  Amendments to Awards Subject to Section 7(a).

(c)  Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.

(a)  No Rights to Award.

(b)  Tax Withholding.

(c)  No Right to Employment or Services.

(d)  Governing Law.

(e)  Section 409A of the Code.

(f)  Severability.

(g)  Other Laws.

(h)  No Trust or Fund Created.

(i)  No Fractional Units.

(j)  Headings.

(k)  Facility Payment.

(l)  Participation by Affiliates.

(m)  Gender and Number.

(n)  No Guarantee of Tax Consequences.

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