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Exhibit 10.8    
    

        ASSET PURCHASE AGREEMENT

between  

 EXPLORATION PARTNERS, LLC,

A Virginia limited liability company,

and others,

"SELLER",  

 and  

 LINN ENERGY HOLDINGS, LLC,

a Delaware limited liability company,

and others,

"PURCHASER"  

 DATED: October 1, 2005  

  
 

    ASSET PURCHASE AGREEMENT    
    

        This Asset Purchase Agreement is made and entered into this 1st day of October, 2005 by and between EXPLORATION PARTNERS,
LLC, a Virginia limited liability company ("EPLLC"), EXPLORATION PARTNERS, INC., a Virginia corporation ("EPI"), and  THOMAS A.
DINGLEDINE and JACOB G. FORD, as attorneys-in-fact for the holders of
co-ownership interests whose names are listed on the signature page of this Agreement (the "Other Sellers", collectively, together with EPLLC and EPI, "Seller"), all with a business
address of 1414 Sachem Village, #1, Charlottesville, VA 22901 and a mailing address of P.O. Box 7831, Charlottesville, VA
22906; and LINN ENERGY HOLDINGS, LLC, a Delaware limited liability company, LINN OPERATING, INC.,
a Delaware corporation, and MID ATLANTIC WELL SERVICE, INC., a Delaware corporation, with a business and mailing address of 650 Washington Road,
8th Floor, Pittsburgh, PA 15228 (collectively, the "Purchaser"). 

 
 

BACKGROUND    
    

        Seller is the owner of certain assets which Seller desires to sell and transfer to Purchaser and Purchaser desires to purchase and receive from Seller for the
consideration and upon the terms and conditions hereinafter set forth. 

 Definitions  

        For purposes of this Agreement, the following terms and variations thereof have the meanings specified or referred to in this Section or in the Section of this
Agreement in which such terms are defined: 

        "Breach"—any breach of, or any inaccuracy in, any representation or warranty or any breach of, or failure to perform or comply
with, any covenant or obligation, in or of this Agreement or any other document to be delivered in connection with the transactions contemplated herein, or any event which with the passing of time or
the giving of notice, or both, would constitute such a breach, inaccuracy or failure. 

        "Closing"—as defined in Section 2. 

        "Closing Date"—as defined in Section 2. 

        "Contracts"—as defined in Section 6.7. 

        "Data"—as defined in Section 1.1F. 

        "Dispute"—as defined in Section 14.1. 

        "Due Diligence Reports"—as defined in Section 9.3. 

        "Effective Time"—as defined in Section 2. 

        "Environmental Defects"—as defined in Section 9.2. 

        "Environmental Laws"—as defined in Section 6.9. 

        "EPI"—as defined in the introduction 

        "EPLLC"—as defined in the introduction 

        "Equipment"—as defined in Section 1.1E. 

        "Equitable Limitations"—as defined in Section 6.17. 

        "Excluded Assets"—as defined in Section1.6. 

        "Governing Documents"—with respect to any particular entity, (a) if a corporation, the articles or certificate of
incorporation and the bylaws; (b) if a general partnership, the partnership agreement and any statement of partnership; (c) if a limited partnership, the limited partnership agreement
and the certificate of limited partnership; (d) if a limited liability company, the articles of organization and 

 

operating
agreement; (e) if another type of entity, any other charter or similar document adopted or filed in connection with the creation, formation or organization of the entity;
(f) all equityholders' agreements, voting agreements, voting trust agreements, joint venture agreements, registration rights agreements or other agreements or documents relating to the
organization, management or operation of any entity or relating to the rights, duties and obligations of the equityholders of any entity; and (g) any amendment or supplement to any of the
foregoing. 

        "Governmental Body"—any: 

         (a)  nation,
state, county, city, town, borough, village, district or other jurisdiction; 

         (b)  federal,
state, local, municipal, foreign or other government; 

         (c)  governmental
or quasi-governmental authority of any nature (including any agency, branch, department, board, commission, court, tribunal or other entity exercising
governmental or quasi-governmental powers); 

         (d)  multinational
organization or body; 

         (e)  body
exercising, or entitled or purporting to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power; or 

          (f)  official
of any of the foregoing. 

        "Hazardous Substance"—as defined in Section 6.9. 

        "Interests"—as defined in Section 1.1. 

        "Legal Requirement"—any federal, state, local, municipal, foreign, international, multinational or other constitution, law,
ordinance, principle of common law, code, regulation, statute or treaty. 

        "Losses"—as defined in Section 12. 

        "Minimum Threshold"—as defined in Section 12. 

        "Notice"—as defined in Section 16. 

        "Oil and Gas Interest"—as defined in Section 1.1A. 

        "Ordinary Course of Business"—an action taken by a party will be deemed to have been taken in the Ordinary Course of Business
only if that action: 

         (a)  is
consistent in nature, scope and magnitude with the past practices of such party and is taken in the ordinary course of the normal, day-to-day
operations of such party; 

         (b)  does
not require authorization by the board of managers or board of directors or the members or shareholders of such party (or by any party or group of parties
exercising similar authority) and does not require any other separate or special authorization of any nature; and 

         (c)  is
similar in nature, scope and magnitude to actions customarily taken, without any separate or special authorization, in the ordinary course of the normal,
day-to-day operations of other parties that are in the same line of business as such party. 

        "Other Sellers"—as defined in the introduction 

        "Permits"—as defined in Section 6.14. 

        "Permitted Encumbrances"—as defined in Section 9.1. 

        "Proceeding"—any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal,
administrative, judicial or investigative, whether formal or informal, whether public or private) 

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commenced,
brought, conducted or heard by or before, or otherwise involving, any Governmental Body or arbitrator. 

        "Purchase Price"—as defined in Section 3.1 

        "Purchaser"—as defined in the introduction. 

        "Release"—any release, spill, emission, leaking, pumping, pouring, dumping, emptying, injection, deposit, disposal, discharge,
dispersal, leaching or migration on or into the environment or into or out of any property. 

        "Rights-of-Way"—as defined in Exhibit A-2. 

        "Seller"—as defined in the introduction. 

        "Substances"—as defined in Section 1.1C. 

        "Surface Contracts"—as defined in Section 1.1D. 

        "Tax Return"—any return (including any information return), report, statement, schedule, notice, form, declaration, claim for
refund or other document or information filed with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with the determination, assessment, collection or
payment of any tax or in connection with the administration, implementation or enforcement of or compliance with any Legal Requirement relating to any tax. 

        "Title Defect"—as defined in Section 9.1. 

        "WARN Act"—as defined in Section 6.3. 

        "Wells"—as defined in Section 1.1B. 

        NOW THEREFORE, for and in consideration of the promises and of the mutual agreements hereinafter set forth, and intending to be legally
bound, the parties hereto agree as follows: 

 
 

           1.    Transfer of Assets.    All of the assets
sold hereunder are owned by Seller. Upon and subject to the terms and conditions set forth in this Agreement, Seller hereby agrees to transfer,
convey and assign to Purchaser on the Closing Date (as hereinafter defined), free and clear of all liens, pledges, and encumbrances of every kind, character, and description, with the exception of
Permitted Encumbrances, as defined in section 9.1 of this Agreement, and Purchaser agrees to purchase and acquire from Seller on the said date, the Interests (as "Interests" are defined in
Section 1.1 of this Agreement). 

        1.1    Interests Defined.    As used herein,
the term "Interests" means the aggregate of all right, title and interest owned by Seller in, to and under the following: 

        A.    Oil and Gas Interests.    All leasehold interests, fee mineral
interests, and operating rights, described in Exhibit A-1, but only as they relate to the wells described in the list of Net Revenue Interests and Working Interests in
Exhibit A-2, and only to the extent of any spacing or proration unit attributable to each well located on the subject properties, including all depths and formations penetrated by
the wells (the "Oil and Gas Interest"). As used herein, Net Revenue Interest shall mean an interest (expressed as a percentage) in and to all gas produced and saved from or attributable to an Oil and
Gas Interest after giving effect to all valid overriding royalties, oil payments, production payments, net profits interest, carried interests, royalty interests, reservations and other similar
burdens upon, measured by, or payable out of production therefrom, and Working Interest shall mean, with respect to any Oil and Gas Interest, the interest in and to such Oil and Gas Interest and all
rights and obligations of every kind and character appurtenant thereto, or arising therefrom, without regard to any valid overriding royalties, oil payments, production payments, net profits interest,
carried interests, royalty interests, reservations and other 

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similar
encumbrances or charges against production therefrom, insofar as such interest is burdened with the obligation to bear and pay costs of operations in respect of such Oil and Gas Interest. 

        B.    Wells.    All natural gas and/or oil wells located on the Oil
and Gas Interests, whether producing, operating, shut-in or temporarily abandoned (the "Wells"). Seller agrees to sell and convey to Purchaser the working interest and net revenue
interests as shown on the attached Exhibits A-1 and A-2. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH HEREIN, THE CONVEYANCE OF WELLS IS MADE AND ACCEPTED
ON AN "AS IS" AND "WHERE IS" BASIS. 

        C.    Severed Substances.    All severed natural gas, casinghead gas,
drip gasoline, natural gasoline, petroleum, natural gas liquids, condensate, products, liquids and other hydrocarbons and other minerals or materials of every kind and description produced from the
Oil and Gas Interests and either (a) in storage tanks on the Closing Date, (b) in pipelines on the Closing Date or (c) sold on or after the Closing Date (the "Substances"). 

        D.    Surface Contracts.    All right-of-way
agreements or other agreements relating to the use or ownership of surface properties that are used or have previously been held for use for flow lines in connection with the production of Substances
from the Oil and Gas Interests, including the right of way agreements and other agreements described on Exhibit A-3 (the "Surface Contracts"). The rights granted Purchaser shall be
non-exclusive, Seller reserving its rights under said agreements solely for use in connection with the Excluded Assets and the reversionary rights/interests under the Farmout Agreement
referred to in Section 1.3; provided that (i) the reservation of Seller does not violate or create a default under the Surface Contracts or restrict Purchaser's rights under the Surface
Contracts, and (ii) Seller complies with all of the terms and conditions of the Surface Contracts in connection with the exercise of its rights thereunder. 

        E.    Equipment.    All equipment, fixtures and physical property (the
"Equipment"), including (a) wells, well and lease equipment and surface equipment owned by the Seller, such as casing, tubing, connections, rods, pipelines, gathering systems, compressors,
separators, tanks, connections, pumps, machinery, tools, materials, supplies, inventory, buildings and other property and equipment of every kind, located upon the Oil and Gas Interests, or
(b) other equipment used or obtained for use in connection with the Oil and Gas Interests, as described in Exhibit B-1, but excluding the property and equipment described in
Exhibit B-2. 

        F.    Information and Data.    Copies of all information relating to
the assets to be acquired by Purchaser that is presently owned by EPLLC and contained in EPLLC's data rooms located at its offices, or at its agents' and representatives' offices, including copies of
all maps, well logs and well files, to the extent the transfer thereof is not prohibited by existing contractual obligations (the "Data"); however, all such copies shall be made at Purchaser's
expense, and EPLLC shall have no obligation to furnish Purchaser any data or information which EPLLC cannot provide Purchaser because of third party restrictions, and further, EPLLC shall not be
obligated to provide its income tax returns and correspondence related thereto. 

        G.    Contracts.    All gas sales contracts pertaining to the Oil and
Gas Interests. EPLLC shall provide to Purchaser, in either original or copied versions, all contracts that govern the purchase of hydrocarbon substances from all of the Oil and Gas Interests in
EPLLC's possession. 

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        H.    Permits.    All franchises, licenses, permits, approvals,
consents, certificates and other authorizations and other rights granted by governmental authorities, immunities, privileges, grants and other rights, that directly relate to the other assets or the
ownership or operation of any thereof, including, without limitation, the permits described on Exhibit A-4. Purchaser will pay all fees in connection with the transfer of the
Permits or changes in operating rights. The parties acknowledge that Linn will drill wells as provided by this Agreement using EPLLC's drilling permits until EPLLC's bond can be transferred under
applicable state reclamation regulations, and will use their best efforts to effect the transfer at the earliest possible date. Notwithstanding anything contained elsewhere in this Agreement to the
contrary, Purchaser shall indemnify, defend and hold harmless EPLLC from and against any claims or liability whatsoever arising out of operations conducted under EPLLC's permits. 

        1.2    Assumption of Obligations.    From and after the Closing,
Purchaser assumes and agrees to perform all express or implied covenants and obligations of Seller relating to the Interests accruing from and subsequent to the Closing Date, including without
limitation Seller's obligations under the agreements attached as Schedule 1.2, excluding any such liability arising as a direct result of due t the nonfeasance or malfeasance of Seller, or due
to a breach of such instruments by Seller prior to Closing. 

        1.3    Farmout Agreement.    Purchaser agrees to enter into a farmout
agreement in the form attached as Exhibit C and on the terms set forth therein, covering all undeveloped leasehold identified by EPLLC not included in the Oil and Gas Interest. 

        1.4    Gas Pipeline Sharing Agreement.    The parties agree to enter
into a gas pipeline sharing agreement in the form attached as Exhibit D so as to enable EPLLC and/or its affiliate MethEx Energy, LLC to transport gas and/or coal gas from the wells and
Stalnaker Leasehold (Lease #4421C) specifically described therein. 

        1.5    Excluded Assets.    The following shall not be included in the
purchase and sale under this Agreement: (i) coal bed methane rights (solid coal, gob, open mine gas), except with respect to the existing dual completion well referred to as Freeland #3;
(ii) fee mineral interests not included in the Oil and Gas Interest; and (iii) all royalty and overriding royalty interests not included in the Oil and Gas Interest. 

 
 

           2.    The Closing; Right of First Refusal.     The asset purchase agreement shall be finalized and executed by Seller and Purchaser by October 28, 2005. The sale and purchase provided in this Agreement
shall be closed on October 31, effective at 11:59 PM E.S.T on September 30, 2005 (the "Effective Time"), or such other date as may be mutually agreed upon by the parties, at the offices
of EPLLC. The date and event of the sale and purchase are, respectively, hereinafter referred to as the "Closing Date" and the
"Closing." For a period of one year from the date of Closing, each of EPLLC and EPI grants to Purchaser a continuing right of first refusal to purchase
any well(s) EPLLC or EPI owns or operates, now or in the future, if located within a ten mile radius of any well listed on Exhibit "A" attached hereto. EPLLC or EPI will provide written notice of its
intention to sell and Purchaser shall respond to such notice within thirty days of receipt of such notice. Purchaser's failure to respond to any notice will be deemed to be election not to purchase. 

 
 

           3.    Payment of Consideration.     

        3.1    Basic Amount.    The purchase price for the Interests shall be
(a) ONE HUNDRED FIFTEEN MILLION and 00/100 DOLLARS ($115,000,000.00) (the "Purchase Price"), which shall be paid by Purchaser on the Closing Date
in immediately available funds and (b) the assumption of obligations more fully addressed at Section 1.2. 

        3.2    2005 Drilling Included in Basic Amount; Closing
Adjustments.    The purchase price in Section 3.1 assumes the drilling and completion by EPLLC prior to Closing of new wells in 

5

 

EPLLC's
2005 program as shown on Exhibit E-1, at $185,000 for each well. A corresponding downward adjustment to the purchase price shall be made at Closing for any of the wells not
completed by the Closing Date. A list of wells that will not be completed as of the Closing Date is attached as Exhibit E-2. As to any wells not completed by the Closing Date,
Purchaser shall reimburse EPLLC for the estimated costs EPLLC incurs up to the Closing Date relating to preparing locations for drilling, including, but not limited to, the costs of permits, surveys,
well water tests, title fees leasehold fees, building location, cutting timber, culverts and stone, subject to post-Closing adjustment under Section 3.6 below. The parties shall
agree prior to Closing on the cost to complete all drilling and reclamation of wells drilled by EPLLC but not finalized as of the Closing Date, as set forth on Exhibit E-3 to be
attached hereto at Closing. 

        3.3    Other Closing Adjustments.    The final purchase price shall be
further adjusted for the price allocable to any Oil and Gas Interests of Other Sellers for whom selling documents are not presented at closing and for the exercise of any preferential election rights,
with provision for further such adjustments to be made post-closing if necessary. In addition, adjustment shall be made for the value of severed substances, as described in
Section 1.1(C), transferred as of the Closing Date. 

        3.4    Escrow of Ad Valorem Taxes and Suspense Items.    An interest-
bearing escrow account shall be established at closing under an escrow agreement substantially in the form of Exhibit Ffor ad valorem taxes payable by EPLLC after closing and for suspended revenue
items listed on Schedule 3.4. 

        3.5    Exchange of Like-Kind Property.    The Seller may
wish to enter into a non-simultaneous exchange of property subsequent to the Closing pursuant to §1031 of the Internal Revenue Code. If the Seller notifies the Purchaser of its
intent to do so prior to the Closing, Purchaser agrees to execute additional escrow instructions, documents, agreements or instruments to effect the exchange, provided that Purchaser shall incur no
additional costs, expenses or liabilities as a result of or in connection with the exchange and shall nto be required to take title to any other property. 

        3.6    Adjustment Post-Closing.    

        A.    On or before one hundred twenty (120) calendar days following the Closing, Seller will prepare and deliver to
Purchaser a statement ("Settlement Statement") detailing, by item, proposed adjustments reflecting the Net Proceeds. The amount of said adjustment shall be paid within ten (10) days after
delivery of the Settlement Statement. "Net Proceeds" shall be determined by utilizing the following formula: 

        Seller
shall be credited with (a) the amount of costs, including administrative expenses, paid by Seller in connection with the operation of the Interests subsequent to the
Effective Time, (b) an amount equal to all costs and expenses attributable to the Interests that are paid by or on behalf of Seller prior to the Closing Date and attributable to the period
after the Effective Time, (c) an amount equal to any underestimate in costs reimbursed EPLLC by Purchaser under Section 3.2 above, and (d) an amount equal to all costs and
expenses attributable to other equipment used or obtained for use in connection with the Oil and Gas Interest, as described in Exhibit C-1, that are paid by or on behalf of Seller
for repairs, maintenance, parts, etc., performed prior to the Closing Date and attributable to the period after the Effective Time. 

        Purchaser
shall be credited with (a) proceeds received by Seller that are attributable to the Interests for the period after the Effective Time, (b) an amount equal to all
costs and expenses paid by Purchaser in connection with operation of the Interests prior to the Effective Time, (c) an amount equal to any overestimate in costs reimbursed EPLLC by Purchaser
under Section 3.2 above, and (d) the value of any Interests for which the net revenue interest is less than as indicated in Seller's disclosure schedules attached to this Agreement.
Purchaser and Seller will pay or refund, as the case may be, the difference. 

6

 

        Purchaser
shall pay EPLLC Two Hundred twenty-five Dollars ($225.00)/well/month for operating the wells between the Effective Time and Closing. 

        Seller
shall make available to Purchaser all information reasonably required to verify whether proposed adjustments detailed on the Settlement Statement are correct. Seller and Purchaser
shall determine if any additional adjustments should be made beyond those made at Closing, and shall make any such adjustments by appropriate payments from Seller to Purchaser or from Purchaser to
Seller. At such time, Seller shall furnish Purchaser a certificate from an officer stating that, to such officer's knowledge, there are no known outstanding payables of Seller. 

        All
recording and filing fees, and any sales taxes or transfer fees on vehicles attributable to or arising from the transaction will be paid by the Purchaser. Sales and transfer taxes,
if any, due upon any other items of the Interests conveyed to Purchaser shall be divided evenly by Seller and Purchaser. 

        B.    Following the adjustments under subsection 3.6.A. above, no further adjustments shall be made to the Purchase Price under
this Section 3. 

        C.    Purchaser shall pay over to Seller within ten (10) days after receipt any proceeds received by Purchaser for
products sold or services rendered by Seller prior to the Closing Date. 

        3.7    Allocation of Purchase Price.    Seller and Purchaser have
agreed upon the allocation of the cash Purchase Price among the Interests ("Allocated Values") prior to the Closing Date, as set forth on
Schedule 3.7. Seller and Purchaser each agree to be bound by such allocations of the cash Purchase Price for all purposes of this Agreement. 

 
 

           4.    Closing Documents.     

        4.1    Documents to be Delivered by the Seller.    Seller agrees to
deliver to Purchaser at or before the Closing the following: 

        A.    Instruments substantially in proper form to transfer the assets to be transferred to Purchaser, in a form satisfactory to
Purchaser and its counsel; 

        B.    Any documents needed to be filed with governmental authorities to record the change of operator of the wells, subject to
state reclamation regulations that will delay transfer of EPLLC's drilling permits, as described above); 

        C.    A copy of all of EPLLC's books and records and other data relating to the Interests, including but not limited to all of
EPLLC's files, abstracts and title opinions, accounting records and other similar files and records which directly relate to the Interests; 

        D.    A copy, certified as of the date of the Closing by the Secretaries of EPLLC and EPI, of the resolutions of EPLLC's and
EPI's Boards of Directors, authorizing the execution, delivery and performance of this Agreement and the related documents; 

        E.    Incumbency certificates, dated the date of Closing, executed by the Secretaries of EPLLC and EPI, which shall certify by
name and title and bear the signature of the officers of EPLLC and EPI authorized to sign this Agreement and the related documents. 

        4.2    Documents to be Delivered by Purchaser.    Purchaser agrees to
deliver to Seller at the Closing the following documents which shall be in form and substance satisfactory to the Seller and its counsel: 

        A.    The Purchase Price as described in Section 3; 

        B.    A copy, certified as of the date of Closing by an officer of Purchaser, of the resolutions of the Purchaser's Board of
Managers, authorizing the execution, delivery and performance of this Agreement and the related documents; and 

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        C.    An incumbency certificate, dated the date of the Closing, executed by an officer of Purchaser, which shall certify by name
and title and bear the signature of the officers of Purchaser authorized to sign this Agreement and the related documents. 

 
 

           5.    Access to Properties and Records.     From and after the date of this Agreement, EPLLC shall afford to the officers, attorneys, accountants, and other authorized representatives of Purchaser free and
full access to the Interests, books and records of EPLLC relating to the Interests in order that Purchaser may have full opportunity to make whatever investigation it shall desire of the Interests,
provided that the investigation shall not unreasonably interfere with the operations of EPLLC. From and after the execution of this Agreement until the Closing, EPLLC will, within
forty-five (45) days of each monthly production cycle, provide to Purchaser a monthly accounting of the allocation of produced volumes and revenues attributable to the Interests. 

 
 

           6.    Representations and Warranties of EPLLC and EPI.     Each of EPLLC and EPI, jointly and severally, represents and warrants unto Purchaser that as of the date hereof and as of the Closing Date:
 

        6.1    Due Organization.    EPLLC is a limited liability company, and
EPI is a corporation, duly organized and in good standing under the laws of the Commonwealth of Virginia. Each of EPLLC and EPI has the power to own its properties and assets and to carry on its
business as now conducted, and is duly qualified to do business and is in good standing in every jurisdiction in which the nature of its business makes proper qualification necessary. 

        6.2    Authority.    Each of EPLLC and EPI has full power and
authority to execute and deliver this Agreement and to perform all of its obligations hereunder in accordance with the terms hereof; all necessary action to authorize this Agreement and the
consummation of the transactions contemplated hereby on the part of EPLLC and EPI has been and will be duly and effectively taken, including without limitation, the approval thereof by the Boards of
Directors of EPLLC and EPI; and this Agreement constitutes the valid and binding obligation of EPLLC and EPI enforceable in accordance with its terms. 

        6.3    Labor Matters.    

        A.    The personnel which currently operate and maintain the Interests on behalf of EPLLC are not members of a labor union and
there is no collective bargaining agreement in place with respect to their employment relating to the Interests; Purchaser shall not be required to hire or continue the employment of any of said
employees; and Purchaser shall not be liable for any violations of labor law committed by EPLLC, either before or after the Closing, in connection with the Interests. The personnel which currently
operate and maintain the Interests on behalf of EPLLC shall remain employees of EPLLC until Closing except for changes of personnel in the Ordinary Course of Business. 

        B.    Purchaser shall not be liable to any employees of EPLLC in connection with any employee benefit plans relating to such
employees' employment related to the Interests on behalf of EPLLC, including but not limited to pension, savings, retiree insurance, layoff, or any other plans or benefits. 

        C.    With respect to the contemplated transactions, EPLLC has not violated the Worker Adjustment and Retraining Notification
Act (the "WARN Act") or any similar state or local Legal Requirement. 

        D.    With respect to the Interests, EPLLC has complied in all respects with all Legal Requirements relating to employment
practices, terms and conditions of employment, equal employment opportunity, nondiscrimination, immigration, wages, hours, benefits, collective bargaining and other requirements, the payment of social
security and similar taxes and 

8

 

occupational
safety and health. EPLLC is not liable for the payment of any taxes, fines, penalties, or other amounts, however designated, for failure to comply with any of the foregoing Legal
Requirements. 

        6.4    Right-of-Way and Fee
Property.    Seller, lessee or holder under the Rights-of-Way and the Fee Property which are included among the Interests, all of which
Rights-of-Way and Fee Property are described on Exhibit A-3. Seller now enjoys and on the Closing Date will enjoy quiet and undisturbed possession under each
of said Rights-of-Way and Fee Property to the extent described in Exhibit A-3. All Rights-of-Way are in full force and effect, and
all payments due thereon will be fully and timely paid at or prior to Closing. To the best of EPI or EPLLC's knowledge, use of the real property for the various purposes for which it is presently
being used is permitted as of right under all applicable zoning legal requirements and is not subject to "permitted nonconforming" use or structure classifications. 

        6.5    Owned and Leased Tangible Personal Property.    

        A.    Title to all items of tangible, personal property and equipment included within the Interests is held by the Seller, free
and clear of any claim, lease, mortgage, security interest, conditional sale agreement or other title retention agreement, restriction or lien or encumbrance of any kind or nature whatsoever, except
as set forth on Schedule 6.5. 

        B.    (i) To the best of EPI or EPLLC's knowledge, all items of tangible personal property and equipment are in
compliance with all applicable Legal Requirements, including those pertaining to zoning, building and the disabled; (ii) no part of any tangible personal property and equipment encroaches on
any real property not included in the Rights-of-Way and Fee Property, and there are no buildings, structures, fixtures or other tangible personal property and equipment
primarily
situated on adjoining property which encroach on any part of the Rights-of-Way and Fee Property; and (iii) the Rights-of-Way and Fee Property for
each owned facility abuts on and has direct vehicular access to a public road or has access to a public road via a permanent, irrevocable, appurtenant easement benefiting such land, is supplied with
public or quasi-public utilities and other services appropriate for the operation of the facilities located thereon and is not located within any flood plain or area subject to wetlands regulation or
any similar restriction. 

        C.    Each item of tangible personal property and equipment is in working condition. Except as disclosed in Schedule 6.5,
all items of tangible personal property and equipment used in Seller's business is in the possession of Seller 

        D.    EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, SELLER EXPRESSLY NEGATES ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE RELATING TO THE CONDITION OF THE ASSETS IDENTIFIED IN SECTION 6.5 (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE). 

        6.6    Taxes.    EPLLC has timely and properly filed all Tax Returns
and reports and forms which it has been required to file, either on its own behalf or on behalf of other persons or entities related to the ownership and/or operation of the Interests, including but
not limited to sales, use, occupation, surtax, franchise, Social Security, withholding, property, excise, ad valorem and severance taxes, all such returns and reports and forms being true and correct
and complete in all respects, and has paid or will pay at or prior to Closing or when such taxes become due, all taxes, including penalties and interest, if any, which have or will become due pursuant
to such returns or reports or forms or pursuant to assessments relating to the ownership and/or operation of the Interests by Seller. 

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        6.7    Operating Agreements and Contracts.    Schedule 6.7(a)
lists all written or oral operating agreements and Schedule 6.7(b) lists all gas gathering, transportation and sales contracts, and commitments (collectively
"Contracts"). To the best of its knowledge, Seller is not in default under any of the Contracts; no claim of default thereunder has been asserted
against Seller. All such Contracts are legally valid and binding and in full force and effect. Copies of all Contracts which are in writing will be made available to Purchaser by EPLLC and are true
and complete and include all amendments and supplements thereto. 

        6.8    Balancing Rights, Refunds, Suspense Accounts, Call
Options.    Except as described in Schedule 6.8, EPLLC has not produced or sold gas subject to balancing rights of third parties or subject to balancing duties
under governmental requirements, and EPLLC is not obligated by virtue of any prepayment made under any production sales contract or any other contract containing a
take-or-pay clause, or under any similar arrangement, to deliver oil, gas or other minerals produced from or allocated to any of the Interests without receiving full payment
therefor at the time of delivery. Except as described in Schedule 6.8, EPLLC has not collected any proceeds from the sale of hydrocarbons produced from the Interests which are subject to
refund. Except as set forth in Schedule 6.8, proceeds from the sale of oil, gas and natural gas liquids from the Interests are being received by EPLLC in a timely manner and are not being held
in suspense for any reason. Except as disclosed in Schedule 6.8, no person has any call upon, option to purchase or similar rights with respect to the Interests or to the production therefrom. 

        6.9    Environmental Matters.    To the best of EPLLC's knowledge,
except as disclosed in Schedule 6.9, there has not been placed any Hazardous Substance (hereafter defined) upon or within the properties included within the Interests and as such EPLLC is
currently in material compliance with all applicable Environmental Laws (hereafter defined), and there has not been any material violation of any applicable Environmental Laws in effect prior to the
date hereof. As used in this Agreement, the term "Environmental Laws" include but are not limited to any Legal Requirement that requires or relates to: 

        (a)   advising
appropriate authorities, employees or the public of intended or actual Releases of pollutants or Hazardous Substances or materials, violations of discharge
limits or other prohibitions and the commencement of activities, such as resource extraction or construction, that could have significant impact on the environment; 

        (b)   preventing
or reducing to acceptable levels the Release of pollutants or Hazardous Substances or materials into the environment; 

        (c)   reducing
the quantities, preventing the Release or minimizing the hazardous characteristics of wastes that are generated; 

        (d)   assuring
that products are designed, formulated, packaged and used so that they do not present unreasonable risks to human health or the environment when used or
disposed of; 

        (e)   protecting
resources, species or ecological amenities; 

        (f)    reducing
to acceptable levels the risks inherent in the transportation of Hazardous Substances, pollutants, oil or other potentially harmful substances; 

        (g)   cleaning
up pollutants that have been Released, preventing the threat of Release or paying the costs of such clean up or prevention; or 

        (h)   making
responsible parties pay private parties, or groups of them, for damages done to their health or the environment or permitting self-appointed
representatives of the public interest to recover for injuries done to public assets. 

10

 

        Examples
of such Environmental Laws include but are not limited to the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. §§6901 et seq., the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. §§9601 et seq. and any federal, state or local law, statute, charter or
ordinance, and any rule, regulation, binding interpretation, binding policy, permit, order, court order or consent decree issued pursuant to any of the foregoing, which pertains to, governs or
otherwise regulates any of the events or activities hereinabove described. As used in this Agreement, the term "Hazardous Substance" shall mean
substances defined and/or regulated by federal or state agencies as (a) hazardous substances and pollutants or contaminants in the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. §§9601 et seq., (b) hazardous wastes and regulated substances in the Resource Conservation and Recovery Act of 1976, as
amended, 42 U.S.C. §§6901 et seq., (c) hazardous chemicals in the Emergency Planning and Community Right-To-Know Act, (d) hazardous air
pollutants under the Clean Air Act, (e) hazardous substances or toxic pollutants regulated under the Federal Water Pollution Control Act, (f) chemical substances regulated under the
Toxic Substances Control Act and (g) crude oil and natural gas liquids. To the best of EPLLC's knowledge, there is currently no material environmental liability in connection with the Interests
arising under Environmental Laws. To the best of EPLLC's knowledge, there are currently no underground storage tanks whatsoever, in-use, retired or abandoned, located upon the acreage
covered by the Rights-of-Way and/or the Fee Property, including, but not limited to underground gasoline tanks, brine tanks or any other storage tank that would hold any and
all liquid or gaseous products. 

        6.10    Regulatory Jurisdiction.    Except as disclosed in
Schedule 6.10, neither the ownership nor the operation of the Interests by the Seller is currently subject to certificate authority or rate regulation under the Natural Gas Act or the Natural
Gas Policy Act as an interstate pipeline, natural gas company or marketing affiliate, nor is the ownership or operation of the Interests subject to rate regulation by any state jurisdictional agency. 

        6.11    No Adverse Changes.    Except as set forth on
Schedule 6.11 hereto, since January 1, 2005, there has not been: 

        A.    any change in the condition (financial or otherwise) of the Interests, except changes in the Ordinary Course of Business,
that has been in any one case or in the aggregate materially adverse to the Interests; 

        B.    any mortgage or pledge of, or creation of any lien, pledge, charge, security interest or encumbrance respecting the
Interests except for liens of current property taxes not yet due and payable; 

        C.    any damage, theft, destruction or casualty loss, whether or not covered by insurance, adversely affecting the Interests; 

        D.    any sale, lease, transfer or assignment of the Interests; 

        E.    any loss, waiver or release of any material rights of the Seller with respect to the Interests, whether or not in the
Ordinary Course of Business or consistent with past practice; 

11

  

        F.     the negotiation or execution of any arrangement, agreement or understanding with respect to the Interests to which the
Seller is a party, which cannot be terminated on notice of thirty days or less without cost or penalty; 

        G.    any work performed or materials furnished to the Seller which could result in the creation of a mechanic's, materialmen's
or other lien against all or any portion of the Interests; or 

        H.    any other transaction, contract or commitment entered into by the Seller with respect to the Interests otherwise than in
the Ordinary Course of Business. 

        6.12    Claims or Litigation.    Except as disclosed in
Schedule 6.12, there is neither any suit, action, claim, mediation, investigation or other proceeding pending or threatened before any court or governmental agency, board, department,
commission, bureau, or instrumentality (including but not limited to any federal, state, local or foreign Governmental Body concerned with the control of foreign exchange, energy, environmental
protection or pollution control, franchising or other distribution arrangements, antitrust or trade regulation, civil rights, labor or discrimination, safety or health, zoning or land use), against
the Seller pertaining to the Interests or which, if adversely determined, would materially impair the ability of the Seller to perform any of its obligations hereunder or result in a material adverse
change in the business, properties, or condition of any of the Interests. Furthermore, there are no defaults by Seller under any applicable order, writ, injunction, decree or award of any court,
arbitrator, mediator or any Governmental Body which would materially impair Seller's ability to perform any of its obligations hereunder or result in any material adverse change in the business,
properties or conditions (financial or otherwise) of any of the Interests. 

        6.13    Compliance with Laws.    Seller has complied in all material
respects with all applicable laws, statutes, rules and regulations, orders and engineering standards of federal, state, local and foreign governments and governmental agencies applicable to the
Interests and no claim of violation of any such laws or regulations exists on the date hereof. 

        6.14    Licenses and Permits.    EPLLC has obtained all material
licenses, franchises, permits and other authorizations (the "Permits") from federal, state, local and other Governmental Bodies necessary to operate the
Interests. Except as set forth in Schedule 6.14, EPLLC has received no outstanding violations, notices of noncompliance therewith, judgments, consent decrees, orders or judicial or
administrative actions(s) or proceeding(s) affecting any of said Permits. 

        6.15    Consents and Approvals.    Except as set forth on
Schedule 6.15 hereto, there are no authorizations, consents, approvals or notices required to be obtained or given by the Seller, or waiting periods required to expire, in order that Seller may
execute and deliver this Agreement, and/or that the Interests may be transferred to Purchaser. 

        6.16    Conflicts.    The execution and delivery of this Agreement by
EPLLC and EPI does not, and the consummation of the transactions contemplated by this Agreement shall not, (a) violate or be in conflict with, or require the consent of any person or entity
under any provision of the Governing Documents of EPLLC or EPI, (b) conflict with, result in a breach of, or constitute a default (or an event that with the lapse of time or notice, or both
would constitute a default) under any agreement or instrument to which EPLLC or EPI is a party, (c) violate any provision of or require any consent, authorization or approval under any
judgment, decree, judicial or administrative order, award, writ, injunction, statute, rule or regulation applicable to EPLLC or EPI, or (d) result in the creation of any lien, charge or
encumbrance on any of the Interests. 

        6.17    Enforceability.    This Agreement has been duly executed and
delivered by Seller and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, reorganization
or moratorium statutes, 

12

 

or
other similar laws affecting the rights of creditors generally or equitable principles (collectively, "Equitable Limitations"). At the Closing all
documents and instruments required hereunder to be executed and delivered by Seller shall be duly executed and delivered and shall constitute its legal, valid and binding obligations enforceable in
accordance with their terms, except as enforceability may be limited by Equitable Limitations. 

        6.18    Title of Seller.    Schedule 6.18 hereto sets forth any
and all mortgages, pledges, liens, charges, security interests and encumbrances, other than those identified on Schedule 6.11, and other than Permitted Encumbrances, hereafter defined in
Section 9.1, created by, through or under Seller. 

        6.19    Disclosure.    No representation or warranty or other
statement made by Seller in this Agreement contains any untrue statement or omits to state a material fact necessary to make any of them, in light of the circumstances in which it was made, not
misleading. 

        6.20    Compliance with Securities and Exchange Commission.    

        (a)   EPLLC
has provided to Purchaser two(2) years and nine (9) months of revenues and expenses of all of the Interests being transferred to Purchaser. 

        (b)   None
of the provisions of this Agreement shall conflict with the requirements which the Purchaser must comply with of the Securities and Exchange Commission of the
United States. 

 
 

           7.    Representations and Warranties of Other Sellers.     The Other Sellers represent and warrant unto Purchaser that as of the date hereof and as of the Closing Date the representations and warranties of EPLLC and EPI
in Section 6 are, to the best of their knowledge, true and correct as to EPLLC, EPI and the Other Sellers. 

 
 

           8.    Representations and Warranties of Purchaser.     Purchaser represents and warrants unto Seller that: 

        8.1    Due Organization.    Linn Energy Holdings, LLC is a limited
liability company, and Linn Operating, Inc. and Mid Atlantic Well Service, Inc. are corporations, duly organized and existing and in good standing under the laws of the State of
Delaware. 

        8.2    Authorization.    Purchaser has full power, in accordance with
law, to execute and perform this Agreement, and such execution and performance does not conflict with any Governing Documents of Purchaser or with any contract to which Purchaser is a party, or to
which it is subject. The Board of Managers and Boards of Directors of Purchaser have authorized, or before the Closing shall have authorized, this Agreement, the transactions contemplated herein, and
their execution by Purchaser. 

        8.3    Enforceability.    This Agreement has been duly executed and
delivered on behalf of Purchaser, and constitutes a legal, valid and binding obligation of it enforceable in accordance with its terms, except as enforceability may be limited by Equitable
Limitations. At the Closing all documents required hereunder to be executed and delivered by Purchaser shall be duly executed and delivered and shall constitute legal, valid and binding obligations of
Purchaser enforceable in accordance with their terms, except as enforceability may be limited by Equitable Limitations. 

        8.4    Conflicts.    The execution and delivery of this Agreement by
Purchaser does not, and the consummation of the transactions contemplated by this Agreement shall not, (a) violate or be in conflict with, or require the consent of any person or entity under
any provision of Purchaser's Certificate of Formation or Articles of Incorporation, operating agreement or other Governing Documents, (b) conflict with, result in a Breach of, constitute a
default (or an event that with the lapse of time or notice, or both, would constitute a default) under any agreement or instrument to which Purchaser is a party or is bound, or (c) violate any
provision of or require any consent, 

13

 

authorization
or approval under any judgment, decree, judicial or administrative order, award, writ, injunction, statute, rule or regulation applicable to Purchaser. 

 
 

           9.    Survival of Representations and Warranties.     The liability of Seller and Purchaser under each of their respective representations and warranties contained in this Agreement shall survive the Closing and
execution and delivery of the assignments contemplated hereunder for a period of one (1) year from the Closing Date, subject to the limitations contained in Section 6.17
[Equitable Limitations]; provided, however, that notwithstanding any other provisions of this Agreement, representations and warranties made with respect to taxes shall survive
throughout the applicable statute of limitations period(s) for such taxes. 

        10.    Additional Agreements of the Parties.    

        10.1    Examination of Title; Title Defects.    From the date hereof
to the Closing Date, Seller shall provide Purchaser full opportunity to examine the Interests, including but not limited to all records, files, reports and documents in Seller's possession, custody or
control pertaining to the Interests as Purchaser reasonably may request. 

        A
"Title Defect" shall be deemed to include any lien, claim, defect, encumbrance or deficiency such that the Seller cannot convey title to
Purchaser with covenant of special warranty, as contemplated herein, provided, no Permitted Encumbrance shall constitute a Title Defect. "Permitted
Encumbrances" are, except as otherwise provided herein, comprised of tax liens and mechanics' liens for amounts not yet due and payable that will be discharged by Seller in the
Ordinary Course of Business; any liens or security interests created by law or reserved with respect to the Interests for royalty, bonus, rental, or other payment obligations relating to the Interests
that are not yet due and payable and that will be paid and discharged by Seller in the Ordinary Course of Business; easements and servitudes that do not materially impair the conduct of operations on
the Interests; all royalties or other burdens that do not reduce Seller's NRI; any contracts or agreements to the extent such contracts or agreements do not reduce Seller's NRI; preferential rights to
purchase with respect to which consents or waivers are obtained prior to Closing; and defects or irregularities of title arising out of events that have been barred by limitations. 

        10.2    Environmental Audit; Environmental Defects.    Purchaser shall
perform, or may have a third party perform prior to Closing, (a) a Phase I environmental audit of the Interests to determine if there exist any conditions attributable to the Interests which
materially violate any Environmental Laws ("Environmental Defects"). (b) an audit of EPLLC's operating and financial records by the Purchaser's
accountants, and (c) an engineering audit with respect to production volumes at the wells set forth on Exhibit "A". Purchaser shall provide to Seller a true and correct copy of the final report
resulting from its environmental audit, at no cost to Seller, within sixty (60) days after said report becomes available to Purchaser. Seller recognizes that the complete final report resulting
from Purchaser's environmental audit may not become available to Purchaser until after the Closing Date. 

        10.3    Notification of Defects.    

        A.    On or before Closing, Purchaser shall deliver to Seller, if it so elects, internal or third party due diligence reports
(the "Due Diligence Reports"). Purchaser shall be solely responsible for the cost of obtaining the Due Diligence Reports. 

        B.    Purchaser shall, at the same time, give written notice to Seller identifying each objection, other than the Permitted
Encumbrances, which Purchaser may have concerning the Interests including, without limitation, any items revealed in any Due Diligence Reports, or otherwise. Seller has "Defensible Title" to the
Properties and warrants Defensible Title to the Properties by, through, and under Seller, but not otherwise. 

14

 

        C.    If Seller receives from Purchaser a timely written notice of Purchaser's objections to any matter concerning the
Interests, as provided in the preceding subsection, Seller shall have five (5) business days following Seller's receipt of Purchaser's notice to give written notice to Purchaser (i) that
Seller shall take all necessary action at Seller's expense to cure Purchaser's objections as set forth in said written notice of Purchaser; or (ii) that Seller is unwilling or unable to cure
the matters giving rise to Purchaser's objections, in which event Purchaser shall have three (3) business days after receipt of Seller's notice to terminate the Agreement by notice in writing
to the Seller. If no election to terminate is made in writing by Purchaser within such three (3) business day period, Purchaser shall have the authority to treat the item of the Interests as an
excluded asset and reduce the Purchase Price by the allocable portion as set forth in Schedule 3.4. 

        D.    In the event of termination of this Agreement under this Section, this Agreement shall be deemed null and void, and the
parties hereto shall have no further obligations to or recourse against each other with regard to the matters provided for in this Agreement. 

        10.4    Delivery of Books and Records.    Seller shall deliver to
Purchaser, as soon as practicable after the Closing Date (but in no event more than ninety (90) days after the Closing Date), copies of all unrestricted books, maps, files, records and other
information requested by Purchaser in the possession, custody or control of Seller and Seller's disbursement agents (including, without limitation, all land, and applicable accounting files, records
and other material) relating to the Interests, or copies thereof at Purchaser's expense. After the Closing Date, Purchaser shall permit Seller reasonable access to such files and records. 

        10.5    Insurance and Bonds.    Seller will, at Seller's expense,
maintain in full force and effect until the Closing Date, all policies of insurance and all surety and other bonds to which the Seller is a party with respect to the Interests. 

        10.6    Further Assurances.    From time to time (whether at or after
Closing), as and when requested by the other, Seller and Purchaser or their successors or assigns will execute, acknowledge and deliver all such instruments and documents and take such other action as
such parties may reasonably deem necessary or desirable in order to more effectively consummate the transactions contemplated hereby and to transfer to Purchaser the Interests. Seller shall use its
reasonable efforts to cause the transactions contemplated by this Agreement to be consummated. 

        10.7    Condemnation, Casualty Loss or Claims.    If, after the
execution of this Agreement, and prior to the Closing Date, any item of the Interests is damaged or destroyed by fire or other casualty, is taken under the right of eminent domain, or proceedings for
such purposes are pending or threatened, or if any item of the Interests is made the subject of any pending or threatened suit, action or other proceeding before any Governmental Body, then the
existence of such a circumstance shall be treated as if the item of the Interests affected thereby were subject to a Title Defect; provided, if Purchaser shall elect to waive such defects affected by
damage, destruction or other casualty, or taken under eminent domain, then all sums paid to Seller by reason of the damage, destruction or taking of such item of the Interests, and all of the right,
title and interest of the Seller in and to any unpaid awards or other payments from third parties, and any claims, causes of action or demands against third parties, arising out of such damage,
destruction, taking or pending or threatened taking, shall be assets of the Seller to which Purchaser shall be entitled. Prior to the Closing Date, Seller shall not voluntarily compromise, settle or
adjust any such rights to awards or other payments, or any such claims, causes of action or demands without the prior written consent of Purchaser. 

        10.8    Consents.    Promptly after execution hereof the Seller will
proceed diligently to solicit any consents to the transfers contemplated hereby which are required to be obtained from third parties. Any item of the Interests which requires the consent of a third
party for transfer where 

15

 

such
consent cannot be obtained prior to the Closing Date (other than routine consents required in connection with federal and state leases), may, at Purchaser's option, be treated as an Excluded
Asset, and the Purchase Price shall be adjusted downward by an amount reasonably agreed to by Seller and Purchaser. 

        10.9    Operation of Interests.    EPLLC will continue to perform as
operator, through the close of business on the Closing Date or through another mutually agreeable date. 

        10.10    Notifications by Purchaser.    Immediately after the Closing,
Purchaser shall notify all applicable operators, non-operators, oil and gas purchasers and Governmental Bodies that it has purchased the Interests. 

        10.11    Operation of Interests.    Seller covenants and agrees that
from the date hereof and up to and including the Closing Date, Seller: 

	(i)
	will
operate the Interests only in the usual, regular and ordinary manner;

	(ii)
	will
maintain the Interests in the same repair, order and condition as of the date hereof, except for reasonable wear and use and damage by fire or other unavoidable casualty;

	(iii)
	will
not become a party to any Contract relating to the Interests without obtaining the prior written consent of the Purchaser, other than Contracts in the Ordinary Course of
Business which do not extend for more than one year or involve the payment of more than $10,000.00;

	(iv)
	will
not borrow any funds or guaranty any obligations secured by the Interests; and

	(v)
	will
promptly notify Purchaser in writing of any material adverse change in its business, operations or financial condition, or in the Interests. 

        10.12.    Assistance in Proceedings.    EPLLC will cooperate with
Purchaser and its counsel in the contest or defense of, and make available its personnel and provide any testimony and access to its books and records in connection with, any Proceeding involving or
relating to (a) any contemplated transaction, or (b) any action, activity, circumstance, condition, conduct, event, fact, failure to act, incident, occurrence, plan, practice, situation,
status or transaction on or before the Closing Date involving the Interests. 

        10.13    Customer and other Business Relationships.    After the
Closing, EPLLC will cooperate with Purchaser in its efforts to continue and maintain for the benefit of Purchaser those business relationships of Seller existing prior to the Closing and relating to
the business to be operated by Purchaser after the Closing, including relationships with lessors, employees, regulatory authorities, licensors, customers, suppliers and others, and EPLLC will satisfy
its retained liabilities in a manner that is not detrimental to any of such relationships. EPLLC will refer to Purchaser all inquiries relating to such business. Neither party nor any of its officers,
employees, agents or shareholders shall take any action that would tend to diminish the value of the Interests after the Closing or that would interfere with the business of the other party to be
engaged in after the Closing, including disparaging the name or business of the other party. Purchaser understands and acknowledges that the Interests conveyed under this Agreement comprise various
operating and/or undivided interests in and to certain real and personal property and that one or more industry or non-industry third parties may also own undivided interests in such real
and personal property though investment and participation under various operating agreements to be assigned to Purchaser pursuant to this Agreement or otherwise. Purchaser agrees that in the event of
a dispute between Purchaser and Seller under this Agreement, Purchaser shall not assert any claim or offset against such industry or non-industry third party or parties nor attempt to deny
the contractual benefits of any agreement between Seller and such third party or parties. 

16

 

        10.14    Waiver of Jury Trial.    THE PARTIES
HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR
AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT, AT THE REQUEST OF EITHER SELLER OR PURCHASER, SHALL BE
SUBMITTED TO BINDING ARBITRATION.  

  
 

            11.    Conditions Precedent to Obligations of Purchaser.
    The obligations of Purchaser under this Agreement are, at the option of Purchaser, subject to the conditions that, at or prior to the Closing Date: 

        11.1    Execution of Agreement.    This Agreement shall have been
signed by Seller obligating and committing Seller to sell to Purchaser all of the Interests, and Seller shall at the Closing on the Closing Date deliver to Purchaser all of the items required by this
Agreement and Seller shall in addition fully comply with the terms and provisions hereof, it being understood and agreed that the obligation of Purchaser to purchase the Interests is conditioned upon
performance hereunder by Seller. 

        11.2    Compliance.    All of the terms, covenants and conditions of
this Agreement to be complied with or performed by Seller at or before the Closing Date shall have been duly complied with and performed. 

        11.3    Accuracy of Representations and Warranties.    The
representations and warranties of Seller set forth in Section 6 hereof shall be true on and as of the Closing Date with the same force and effect as if such representations and warranties had
been made on and as of the Closing Date. The provisions of this paragraph shall be self executing, and Seller, by having closed the sale of the Interests hereunder, shall be deemed conclusively to
have certified at Closing that all such representations and warranties were true on and as of the Closing Date. 

        11.4    No Adverse Effect.    The Interests shall not have been
materially adversely affected as a result of any fire, accident, or other casualty or any act of God or the public enemy, unless they shall have been protected and fully covered by insurance. 

17

  

        11.5    No Adverse Change.    There shall have been no changes in the
Interests since the execution of this Agreement, other than changes in the Ordinary Course of Business that do not have a materially adverse effect on the value of the Interests. 

        11.6    Board Approval.    Purchaser shall have received the duly
authorized approval of its Board of Managers. 

        11.7    Authorizations.    All authorizations, approvals, and consents
of any Governmental Body necessary in connection with the sale and transfer of the Interests to Purchaser or for the continued operation of the Interests in the manner in which the Interests are now
conducted after such transfer, shall have been secured, where possible, and where not possible, shall have been applied for by Seller and/or Purchaser, as applicable. 

        11.8    Consents.    Seller shall have received all consents,
permissions, novations and approvals by third parties necessary for the sale and transfer of the Interests. 

        11.9    Litigation.    No action or proceeding shall have been
instituted or threatened to set aside the transactions provided for herein or to enjoin or prevent the consummation thereof. 

        11.10    Liens.    The liens listed in Schedule 6.11 shall have
been released. 

 
 

           12.    Conditions Precedent to Obligations of Seller.     The obligations of Seller under this Agreement are, at the option of Seller, subject to the condition that, at or before the Closing Date, all the terms,
conditions, and covenants of this Agreement to be complied with and performed by Purchaser at or before the Closing Date shall have been duly complied with and performed. 

 
 

           13.    Indemnification by Seller.     Seller
shall defend, indemnify and save Purchaser and its members, managers, officers, affiliates, successors and assigns harmless from and against (a) any
and all claims, liabilities, damages, losses, assessments, costs and expenses, including reasonable attorneys' fees and expenses and costs of suit (collectively,
"Losses"), arising out of any and all inaccurate representations and out of any and all Breaches of covenants and warranties and stipulations and
agreements and certifications made by or on behalf of Seller in this Agreement or in any document delivered hereunder, and (b) any Losses suffered or incurred by Purchaser resulting from,
related to or arising from the ownership or operation of the Interests prior to the Closing by Seller or any of its affiliates, including, without limitation, losses attributable to Seller's
noncompliance with any Environmental Laws. Notwithstanding the foregoing, Seller shall not be obligated to indemnify Purchaser in connection with any Losses until the total of all Losses exceeds Ten
Thousand Dollars ($10,000.00) ("Minimum Threshold"), and then only for an amount by which such Losses exceed the Minimum Threshold. Seller shall under
no circumstances be obligated to indemnify Purchaser for Losses in an aggregate amount in excess of the Purchase Price. Notwithstanding the foregoing, the Seller shall not be obligated to indemnify
Purchaser in connection with any Losses unless Purchaser notifies Seller of such Losses no later than one (1) year from the Closing Date, subject to the limitations contained in
Section 6.17, excluding however any Losses with respect to taxes. 

 
 

           14.    Indemnification by Purchaser.     Purchaser shall defend, indemnify and save Seller and its shareholders, directors, officers, successors and assigns harmless from and against (a) any and
all Losses arising out of any and all inaccurate representations and out of any and all Breaches of covenants and warranties and stipulations and agreements and certifications made by or on behalf of
Purchaser in this Agreement or in any document delivered hereunder, (b) any Losses suffered or incurred by Seller resulting from, related to or arising from (i) Purchaser's drilling
activities under EPLLC's drilling permit as described in Section 1.1(H), (ii) Purchaser's noncompliance with any regulatory requirements relating to its acquisition and reporting of the
acquisition of assets in this Agreement, including without limitation Securities and Exchange Commission requirements, or (iii) the ownership or operation of the Interests after the Closing by
Purchaser or any of its affiliates, including, without limitation, Losses attributable to Purchaser's noncompliance with any Environmental Laws 

18

 

 
 

           15.    Arbitration.     

        15.1    Binding Arbitration.    On the request of any party hereto,
whether made before or after the institution of any legal proceeding, any action, dispute, claim or controversy of any kind now existing or hereafter arising between any of the parties hereto in any
way arising out of, pertaining to or in connection with this Agreement (a "Dispute") shall be resolved by binding arbitration in accordance with the
terms
hereof. Any party may, by summary proceedings, bring an action in court to compel arbitration of any Dispute. 

        15.2    Governing Rules.    Any arbitration shall be administered in
accordance with the terms of this Section and the Federal Arbitration Act, 9 U.S.C §§1 et seq. Judgment on any award rendered by an arbitrator may be entered in any court
having jurisdiction. 

        15.3    Arbitrator.    Any arbitration shall be conducted before one
arbitrator. The arbitrator shall be a practicing attorney licensed to practice in the State of West Virginia, who is knowledgeable in the subject matter of the Dispute selected by agreement between
the parties hereto. If the parties cannot agree on an arbitrator within 30 days after the request for an arbitration, then any party may request the federal district court to select an
arbitrator. The arbitrator may engage engineers, accountants or other consultants that the arbitrator deems necessary to render a conclusion in the arbitration proceeding. 

        15.4    Conduct of Arbitration.    To the maximum extent practicable,
an arbitration proceeding hereunder shall be concluded within 180 days of the filing of the Dispute. Arbitration proceedings shall be conducted in Charleston, West Virginia. The arbitrator
shall be empowered to impose sanctions and to take such other actions as the arbitrator deems necessary to the same extent a judge could impose sanctions or take such other actions pursuant to the
Federal Rules of Civil Procedure and applicable law. At the conclusion of any arbitration proceeding, the arbitrator shall make specific written findings of fact and conclusions of law. The arbitrator
shall have the power to award recovery of all costs and fees but not punitive damages to the prevailing party. Each party agrees to keep all Disputes and arbitration proceedings strictly confidential
except for disclosure of information required by applicable law. 

        15.5    Costs of Arbitration.    All fees of the arbitrator and any
engineer, accountant or other consultant engaged by the arbitrator, shall be paid by Purchaser and Seller equally unless otherwise awarded by the arbitrator. 

 
 

           16.    Expenses.     Except as otherwise
specifically provided in this Agreement, Seller shall pay its own expenses and costs, including, without limitation, all counsel fees, and
Purchaser shall pay its expenses and costs in connection with this Agreement and the transactions contemplated hereby, including any counsel fees, and recording costs. Any and all applicable real
property transfer taxes shall be borne by Purchaser. 

 
 

          17.    Notice.     "Notice" means any notice, demand, request, or other communication or document to be provided under this Agreement
to a party to this Agreement. The Notice shall be in writing and shall be given to the party at its address or telecopy number set forth below or such other address or telecopy number as the party may
later specify for that purpose by notice to the other party. Each Notice shall, for all purposes, be deemed given and received: 

        A.    If given by telecopy, when the telecopy is transmitted to the party's telecopy number specified below and confirmation of
complete receipt is received by that transmitting party during normal business hours or on the next business day if not confirmed during normal business hours; 

        B.    If hand delivered to a party against receipted copy, when the copy of the Notice is receipted; 

19

 

        C.    If given by a nationally recognized and reputable overnight delivery service, the day on which the Notice is actually
received by the party; or 

        D.    If given by any other means or if given by certified mail, return receipt requested, postage prepaid, three
(3) business days after it is posted with the United States Postal Service, at the address of the party specified below: 

	If to Seller:	 	Exploration Partners, LLC

P.O. Box 930

Bridgeport, WV 26330

Telephone: (304) 842-8777

Fax: (304) 842-8786

Attention: Louis A. Ferrari
	

with a copy to:	
 	

Exploration Partners, LLC

P.O. Box 7831

Charlottesville, VA 22906

Telephone: (434) 973-8311

Fax: (434) 973-8342

Attention: Thomas A. Dingledine, President
	

and:	
 	

Christopher B. Wallace

Attorney at Law

1602 Sunset Avenue

Utica, NY 13502

Telephone: (315) 735-4599

Fax: (315) 735-4562
	

and:	
 	

Elizabeth H. Woodard

Attorney at Law

2421 Ivy Road

Charlottesville, VA 22903

Telephone: (434) 977-9823

Fax: (434) 817-7410
	

If to Purchaser:	
 	

Linn Energy Holdings, LLC

1700 N. Highland Road

Pittsburgh, PA 15241

Telephone: 412-440-1400

Fax: 412-440-1499

Attention: Michael C. Linn, President
	

with a copy to:	
 	

Sherrard, German & Kelly, P.C.

28th Floor, Two PNC Plaza

620 Liberty Avenue

Pittsburgh PA 15222

Telephone: 412-355-0200

Fax: 412-261-6221

Attention: Susan J. Messer, Esquire

        If
any Notice is sent by telecopy, the transmitting party may as a courtesy send a duplicate copy of the Notice to the other party by regular mail. In all events, however, any Notice
sent by telecopy transmission shall govern all matters dealing with delivery of the Notice, including the date on which the Notice is deemed to have been received by the other party. 

20

 

        The
provisions above governing the date on which a Notice is deemed to have been received by a party to this Agreement shall mean and refer to the date on which a party to this
Agreement, and not its counsel or other recipient to which a copy of the Notice may be sent, is deemed to have received the Notice. 

        If
Notice is tendered under the provisions of this Agreement and is refused by the intended recipient of the Notice, the Notice shall nonetheless be considered to have been given and
shall be effective as of the date provided in this Agreement. 

 
 

          18.    Termination Events.     

        18.1     By written notice given prior to the Closing, this Agreement may be terminated as follows: 

        (a)   by
Purchaser if a material Breach of any provision of this Agreement has been committed by Seller and such Breach has not been waived by Purchaser; 

        (b)   by
Seller if a material Breach of any provision of this Agreement has been committed by Purchaser and such Breach has not been waived by Seller; 

        (c)   by
Purchaser if any condition in Section 10 has not been satisfied as of the date specified for Closing or if satisfaction of such a condition by such date is or
becomes impossible (other than through the failure of Purchaser to comply with its obligations under this Agreement), and Purchaser has not waived such condition on or before such date; 

        (d)   by
Seller if any condition in Section 11 has not been satisfied as of the date specified for Closing or if satisfaction of such a condition by such date is or
becomes impossible (other than through the failure of Seller to comply with its obligations under this Agreement), and Seller has not waived such condition on or before such date; 

        (e)   by
mutual consent of Purchaser and Seller; 

        (f)    by
Purchaser if the Closing has not occurred on or before November 5, 2005, or such later date as the parties may agree upon; or 

        (g)   by
Seller if the Closing has not occurred on or beforeNovember 5, 2005, or such later date as the parties may agree upon. 

        18.2.     Each party's right of termination under Section 18.1 is in addition to any other rights it may
have under this Agreement or otherwise, and the exercise of such right of termination will not be an election of remedies. If this Agreement is terminated pursuant to Section 18.1, all
obligations of the parties under this Agreement will terminate, except that the obligations of the parties in this Section 18.2 (except for those in Section 9) will survive; provided,
however, that if this Agreement is terminated because of a Breach of this Agreement by the nonterminating party or because one or more of the conditions to the terminating party's obligations under
this Agreement is not satisfied as a result of the party's failure to comply with its obligations under this Agreement, the terminating party's right to pursue all legal remedies will survive such
termination unimpaired. 

 
 

           19.    Miscellaneous     

        19.1.    Broker's Fees—Seller's Indemnification.    Seller
shall indemnify Purchaser against, and hold it harmless from, any and all liabilities, including, without limitation, counsel fees and other costs of defending against liabilities for a brokerage
commission, to any person, firm, or corporation for any brokerage commission or finder's fee in connection with any of the transactions contemplated by this Agreement, arising out of acts by the
Seller. 

        19.2.    Broker's Fees—Purchaser's
Indemnification.    Purchaser shall indemnify the Seller against, and hold it harmless from, any and all liabilities, including, without limitation, counsel fees 

21

 

and
other costs of defending against liabilities for a brokerage commission, to any person, firm, or corporation for any brokerage commission or finder's fee in connection with any of the transactions
contemplated by this Agreement, arising out of acts by Purchaser. 

        19.3    Integration.    This instrument contains the entire agreement
between the parties hereto with respect to the transaction contemplated hereby and shall not be changed or terminated except by written amendment signed by the parties hereto. Neither party has made
any representations to the other except as set forth in this Agreement or in the schedules hereto. 

        19.4    Exhibits and Schedules.    All exhibits and schedules referred
to herein are attached hereto and by this reference made a part hereof. 

        19.5    Counterparts.    This Agreement may be executed in any number
of counterparts, and all counterparts executed by Purchaser and Seller together shall constitute one and the same Agreement, and it shall not be necessary for Purchaser and Seller to execute the same
counterpart hereof. 

        19.6    Binding Effect.    This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns; provided, no permitted assignment by any party shall relieve such party of any of its obligations hereunder. 

        19.7    Section Headings.    The section headings contained in this
Agreement are for convenient reference only and shall not in any way affect the meaning or interpretation of this Agreement. 

22

  

        19.8    Superseding Effect.    This Agreement supersedes any prior
agreement and understanding between the parties with respect to the subject matter of this Agreement. 

        19.9    Governing Law.    This Agreement shall be governed by and
construed in accordance with the laws of the State of West Virginia applicable to contracts made and performed entirely therein, without regard to conflicts of laws provisions. 

        19.10    Waivers.    This Agreement may not be modified, terminated,
rescinded, discharged or canceled without the prior written consent of the party or parties against whom such modification, termination, rescission, discharge or cancellation is or may be asserted. No
delay or omission by any party to exercise any right or power shall impair any such right or power or be construed to be a waiver thereof. No party's rights hereunder will be deemed waived except by a
writing signed by such party. Without limitation, the occurrence of the Closing shall not be deemed a waiver of any party's rights except its right to refuse to close. A waiver of any provision of
this Agreement on any occasion shall not constitute a waiver of such provision on any succeeding occasion. 

        19.11    Time.    Time shall be of the essence with respect to all
rights and obligations of Seller and Purchaser regarding due diligence hereunder. 

        19.12    Construction.    This Agreement shall not be construed
against the party preparing it, but shall be construed as if both parties prepared this Agreement. This Agreement is not intended to confer any rights or remedies upon any other persons who or which
are not parties hereto. 

        19.13    Assignment.    Neither Seller nor Purchaser may assign its
rights or delegate its duties or obligations arising under this Agreement, in whole or in part, by operation of law or otherwise, before Closing, without the prior written consent of the other party. 

        19.14    Public Announcements.    Subject to applicable securities
laws or stock exchange requirements, at all times, Purchaser and Seller shall obtain the approval of the other before issuing any press release with respect to this Agreement or the transactions
contemplated hereby. The parties agree that a press release may be issued, subject to the approval by all parties hereto, upon the execution of this Agreement. 

        19.15    Confidentiality.    Neither party, nor its respective
officers, directors, employees or representatives, will disclose to any person or entity any information relative to the Purchase Price or any adjustments thereto, unless and only to the extent that
disclosure is required to be made under any federal or state law, rule or regulation or the order of any Governmental Body having competent jurisdiction except on a "need to know" basis.
Notwithstanding the provisions of Section 8 hereinabove, the obligations contained in this Section 19.15 shall remain in effect for a period of five (5) years following the
Closing Date. 

        19.16    Cumulative Remedies.    Unless stated otherwise, all remedies
available under this Agreement shall be cumulative and in addition to and not in lieu of any other remedies available at law, in equity or otherwise. The use of any one right or remedy by either
Seller or Purchaser shall not preclude or waive its right to use any or all other remedies. 

        19.17    Severability.    If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction or in a binding arbitration, the other provisions of this Agreement will remain in full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 

[Signatures
are on the following page.] 

23

 

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

	ATTEST:	 	SELLER:
	

 	

 	
 	
EXPLORATION PARTNERS, LLC
	

By:	

 	
 	

By:	

 
	 	
 Secretary	 	 	

	

 	

 	
 	
EXPLORATION PARTNERS, INC.
	

By:	

 	
 	

By:	

 
	 	
 Secretary	 	 	

24

 

	ATTEST:	 	PURCHASER:
	

 	

 	
 	
LINN ENERGY HOLDINGS, LLC
	

By:	

 	
 	

By:	

 
	 	
	 	 	

	

Title:	

 	
 	

Title:	

 
	 	
	 	 	

	

 	

 	
 	
LINN OPERATING, INC.
	

By:	

 	
 	

By:	

 
	 	
	 	 	

	

Title:	

 	
 	

Title:	

 
	 	
	 	 	

	

 	

 	
 	
MID ATLANTIC WELL SERVICE, INC.
	

By:	

 	
 	

By:	

 
	 	
	 	 	

	

Title:	

 	
 	

Title:	

 
	 	
	 	 	

25

QuickLinks

Exhibit 10.8

ASSET PURCHASE AGREEMENT

BACKGROUND

1. Transfer of Assets.

2. The Closing; Right of First Refusal.

3. Payment of Consideration.

4. Closing Documents.

5. Access to Properties and Records.

6. Representations and Warranties of EPLLC and EPI.

7. Representations and Warranties of Other Sellers.

8. Representations and Warranties of Purchaser.

9. Survival of Representations and Warranties.

11. Conditions Precedent to Obligations of Purchaser.

12. Conditions Precedent to Obligations of Seller.

13. Indemnification by Seller.

14. Indemnification by Purchaser.

15. Arbitration.

16. Expenses.

17. Notice.

18. Termination Events.

19. MiscellaneousQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.11    
    

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT  

        The parties to this Second Amended and Restated Employment Agreement (this
"Agreement") are LINN OPERATING, INC., a Delaware corporation (the
"Company") and MICHAEL C. LINN (the
"Employee"). The Company and the Employee are currently parties to an Amended and Restated Employment Agreement dated
April 7, 2003 as amended as of June 2, 2005 (the "Existing Employment Agreement"). The parties desire to
provide for the continued employment of the Employee as President and Chief Executive Officer of the Company and of Linn Energy on the terms set forth herein effective as of the date of completion of
an initial public offering of Linn Energy's equity securities ("Units"). 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. The date this Agreement becomes effective is herein referred to as the "Effective Date". This
Agreement replaces and supersedes in its entirety the Amended and Restated Employment Agreement that was executed on June 2, 2005. 

        Accordingly,
the parties, intending to be legally bound, agree to amend and restate the Existing Employment Agreement effective as of the Effective Date 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 President and Chief
Executive Officer. In such capacity, the Employee will report to 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 will have such duties, responsibilities and authorities as may be assigned to him by 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 his full working
time to the business and affairs of the Company and Linn Energy, will
use his best efforts to promote the Company's and Linn Energy's interests and will perform his duties and responsibilities faithfully, diligently and to the best of his 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 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 violate
Section 7, 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
his obligations to the Company or Linn Energy under this Agreement. The activities in which the Employee is engaged as of the Effective Date, all of which have been approved by the Board, are listed
on Exhibit A hereto. 

 
 

          1.3    Place of Employment.     The Employee will perform his duties under this Agreement at the Company's
offices in Pittsburgh, Pennsylvania, 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 $250,000 for services rendered to the Company and any of its direct or indirect subsidiaries, payable in accordance
with the Company's regular payroll practices; provided that for the first twelve (12) months following the Effective Date, the Base Salary will be $1.00. 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    Annual Bonus Compensation.     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 him 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.     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 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. Without limiting the foregoing, on the Effective Date, subject to the conditions hereinafter set forth, the Board will cause the
Company to grant to the Employee and will cause Linn Energy to issue to the Employee: (i) a Unit option award (the "Unit Option
Award") equal to 0.4% (0.004) of Linn Energy's outstanding Units immediately following the closing of the IPO (with an exercise price per Unit equal to the IPO
price) and (ii) a Unit grant (the "Unit Grant") equal to 2.25% of the Company's outstanding Units immediately
following the closing of the IPO, which Unit Grant will be issued to Employee on the January 1st following the first anniversary of the Effective Date. The Unit Grant is conditioned on the
Employee remaining employed by the Company through the date of issuance. Once issued, the Unit Grant will be fully vested. Assuming the Employee continues in the employ of the Company and serves as an
executive officer of Linn Energy through the applicable vesting date, the Unit Option Award will vest one-third 1/3 one year after the Effective Date, one-third
1/3 two years after the Effective Date and one-third 1/3 three years after the Effective Date. Each of the Unit Option Award and the Unit Award is subject to
accelerated vesting in full upon the Employee's death or disability, a termination without Cause (as defined in Section 5.2(b)), with Good Reason (as defined in
Section 5.3(c)) or upon a Change of Control (as defined in Section 6.4(c)), in accordance with the provisions of the Linn Energy
Equity Incentive Plan and its standard Unit award agreements. 

        As
of the Effective Date or as soon as practicable thereafter, Linn Energy will file with the Securities and Exchange Commission a registration statement on Form S-8
registering the securities issuable under Linn Energy's Equity Incentive Plan, including Units issued pursuant to the Unit Option Award and the Unit Grant, and will take such actions thereafter as
necessary to maintain the continued availability of the registration statement on Form S-8. 

 
 

           3.4    IPO Success Payment.     The Company will pay the Employee an IPO success payment in the amount of
$500,000, payable in a lump sum cash payment (minus any applicable tax withholding)
within thirty (30) days after the IPO closes. 

2

 

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 him 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 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 his 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 his
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 Related Parties' funds,
(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 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 his 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 

3

 

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 his 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 his 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; (b) a
relocation of the Employee's primary place of employment to a location more than 50 miles from Pittsburgh, Pennsylvania; or (c) any material reduction in the Employee's title, authority or
responsibilities as President and Chief Executive Officer of the Company and Linn Energy. 

 
 

           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 8.7. 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 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 therefor 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 his 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 his estate, the amount of (a) the Employee's accrued but unpaid Base Salary through
the Termination Date paid in a 

4

 

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, (c) a pro rata portion of any Bonus for the fiscal year in which the Termination Date occurs, payable at such time as bonuses for the annual period are paid to other
executive officers of the Company, determined by multiplying the Employee's target Bonus for such period by a fraction, the numerator of which is the number of days from the first day of the fiscal
year of the Company in which such termination occurs through and including the Termination Date and the denominator of which is 365 ("Pro Rata
Bonus"), 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 his 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) 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) the Employee's
Pro-Rata Bonus, payable at such time as bonuses for the 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. 

 
 

           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 his 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 

5

 

without
Cause, or the Employee terminates his 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) 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; 

         (ii)  twenty-four
(24) monthly payments each 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, it being agreed that for purposes hereof, the Employee's Base Salary during the first twelve (12) months following the Effective Date will be deemed to be
$250,000; 

        (iii)  a
cash amount equal to the Employee's Pro-Rata Bonus for the fiscal year in which the Termination Date occurs, payable at such time as bonuses for the
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 his employment
for Good Reason, 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 equal to thirty-six (36) monthly payments and will be paid in a lump sum within thirty (30) days following the
Termination Date. 

        (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 Securities Exchange Act of 1934, as
amended(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, (D) any acquisition by any corporation or other entity pursuant to a transaction that complies with
Section 6.4(c)(iii)(A), Section 6.4(c)(iii)(B) or Section 6.4(c)(iii)(C) or (E) any
acquisition of shares held by Quantum Energy Partners II, LP or from Linn Energy arising out of or in connection with an IPO of Linn Energy's securities; 

6

 

         (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 Unitholders, 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; 

        (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 an affirmation of the restrictive covenants set forth in
Section 7 and 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 

7

 

refuses
to execute a Release within a reasonable time 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 him, the Employee will
not be entitled to any 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. 

         (ii)  Limitation on Benefits.    If, following a termination of employment that gives
the Employee a right to the payment of Severance Benefits under Section 6.4(a) or Section 6.4(b), the Employee violates in any
material respect any of the covenants in Section 7 or as otherwise set forth in the Release, the Employee will have no further right or claim to any payments or
other benefits to which the Employee may otherwise be entitled under Section 6.4(a) or Section 6.4(b) from and after the date on
which the Employee engages in such activities and the Company will have no further obligations with respect to such payments or benefits, and the covenants in
Section 7 will nevertheless continue in full force and effect. 

 
 

          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 Payments by the Company.     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. 

8

  

7.     Restrictive Covenants.  

 
 
        7.1    Confidential Information.     The Employee hereby acknowledges that in connection with his employment by the
Company he will be exposed to and may obtain certain Confidential Information (as
defined below) (including, without limitation, procedures, memoranda, notes, records and customer and supplier lists whether such information has been or is made, developed or compiled by the Employee
or otherwise has been or is made available to him) regarding the business and operations of the Company and its subsidiaries or affiliates. The Employee further acknowledges that such Confidential
Information is unique, valuable, considered trade secrets and deemed proprietary by the Company. For purposes of this Agreement, "Confidential
Information" includes, without limitation, any information heretofore or hereafter acquired, developed or used by any of the Company, Linn Energy or their direct
or indirect subsidiaries relating to Business Opportunities or Intellectual Property or other geological, geophysical, economic, financial or management aspects of the business, operations, properties
or prospects of the Company, Linn Energy or their direct or indirect subsidiaries, whether oral or in written form. The Employee agrees that all Confidential Information is and will remain the
property of the Company, Linn Energy or their direct or indirect subsidiaries, as the case may be. The Employee further agrees, except for disclosures occurring in the good faith performance of his
duties for the Company, Linn Energy or their direct or indirect subsidiaries, during the Employment Term and for a period of two (2) years after the Termination Date, to hold in the strictest
confidence all Confidential Information, and not to, directly or indirectly, duplicate, sell, use, lease, commercialize, disclose or otherwise divulge to any person or entity any portion of the
Confidential Information or use any Confidential Information for his own benefit or profit or allow any person, entity or third party, other than the Company, Linn Energy or their direct or indirect
subsidiaries and authorized executives of the same, to use or otherwise gain access to any Confidential Information. The Employee will have no obligation under this Agreement with respect to any
information that becomes generally available to the public other than as a result of a disclosure by the Employee or his agent or other representative or becomes available to the Employee on a
non-confidential basis from a source other than the Company, Linn Energy or their direct or indirect subsidiaries. Further, the Employee will have no obligation under this Agreement to
keep confidential any of the Confidential Information to the extent that a disclosure of it is required by law or is consented to by the Company or Linn Energy; provided, however, that if and when
such a disclosure is required by law, the Employee promptly will provide the Company with notice of such requirement, so that the Company may seek an appropriate protective order. 

 
 

           7.2    Return of Property.     Employee agrees to deliver promptly to the Company, upon termination of his
employment hereunder, or at any other time when the Company so requests, all documents
relating to the business of the Company, Linn Energy or their direct or indirect subsidiaries, including without limitation: all geological and geophysical reports and related data such as maps,
charts, logs, seismographs, seismic records and other reports and related data, calculations, summaries, memoranda and opinions relating to the foregoing, production records, electric logs, core data,
pressure data, lease files, well files and records, land files, abstracts, title opinions, title or curative matters, contract files, notes, records, drawings, manuals, correspondence, financial and
accounting information, customer lists, statistical data and compilations, patents, copyrights, trademarks, trade names, inventions, formulae, methods, processes, agreements, contracts, manuals or any
documents relating to the business of the Company, Linn Energy or their direct or indirect subsidiaries and all copies thereof and therefrom; provided, however, that the Employee will be permitted to
retain copies of any documents or materials of a personal nature or otherwise related to the Employee's rights under this Agreement. 

9

 

 
 

           7.3    Non-Compete Obligations.     

        (a)    Non-Compete Obligations During Employment Term.    The Employee agrees that during the Employment
Term: 

          (i)  the
Employee will not, other than through the Company, engage or participate in any manner, whether directly or indirectly through any family member or as an employee,
employer, consultant, agent, principal, partner, more than one percent shareholder, officer, director, licensor, lender, lessor or in any other individual or representative capacity, in any business
or activity which is engaged in leasing, acquiring, exploring, producing, gathering or marketing hydrocarbons and related products; and 

         (ii)  all
investments made by the Employee (whether in his own name or in the name of any family members or other nominees or made by the Employee's controlled affiliates),
which relate to the leasing, acquisition, exploration, production, gathering or marketing of hydrocarbons and related products will be made solely through the Company; and the Employee will not
(directly or indirectly through any family members or other persons), and will not permit any of his controlled affiliates to: (A) invest or otherwise participate alongside the Company or its
direct or indirect subsidiaries in any Business Opportunities, or (B) invest or otherwise participate in any business or activity relating to a Business Opportunity, regardless of whether any
of the Company or its direct or indirect subsidiaries ultimately participates in such business or activity, in either case, except through the Company. 

        (b)    Non-Compete Obligations After Termination Date.    The Employee agrees that the Employee will not
engage or participate in any manner, whether directly or indirectly through any family member or other person or as an employee, employer, consultant, agent principal, partner, more than one percent
shareholder, officer, director, licensor, lender, lessor or in any other individual or representative capacity: 

          (i)  during
the one-year period following the Termination Date, in any business or activity which is engaged in leasing, acquiring, exploring, producing,
gathering or marketing hydrocarbons and related products within (A) any county or parish in which the Company owns any oil and gas interests or conducts operations on the Termination Date or in
which the Company has owned any oil and gas interests or conducted operations at any time during the six months immediately preceding the Termination Date or (B) any county or parish adjacent
to any county or parish described in clause (A); and 

         (ii)  during
the two-year period following the Termination Date, in any business or activity which is in direct competition with the business of the Company or
its direct or indirect subsidiaries in the leasing, acquiring, exploring, producing, gathering or marketing of hydrocarbons and related products within the boundaries of, or within a
two-mile radius of the boundaries of, any mineral property interest of any of the Company or its direct or indirect subsidiaries (including, without limitation, a mineral lease, overriding
royalty interest, production payment, net profits interest, mineral fee interest or option or right to acquire any of the foregoing, or an area of mutual interest as designated pursuant to contractual
agreements between the Company and any third party) or any other property on which any of the Company or its direct or indirect subsidiaries has an option, right, license or authority to conduct or
direct exploratory activities, such as three-dimensional seismic acquisition or other seismic, geophysical and geochemical activities (but not including any preliminary geological mapping), as of the
Termination Date or as of the end of the six-month period following such Termination Date; provided that, this subsection (ii) will not preclude the Employee from making investments
in securities of oil and gas companies which are registered on a national stock exchange, if (A) the aggregate amount owned by the Employee and all family members and affiliates does not exceed
5% of such company's outstanding securities, and (B) the 

10

 

aggregate
amount invested in such investments by the Employee and all family members and affiliates after the date hereof does not exceed $500,000. 

        (c)    Not Applicable Following Change of Control Termination.    The Employee will not be subject to the covenants
contained in this Section 7.3 and such covenants will not be enforceable against the Employee from and after the date that the Employee's employment is terminated
within one (1) year after a Change of Control. 

 
 

          7.4    Non-Solicitation.     During the Employment Term and for a period of twenty-four (24) months
after the Termination Date, the Employee will not, whether for his own
account or for the account of any other Person (other than the Company or its direct or indirect subsidiaries), intentionally solicit, endeavor to entice away from the Company or its direct or
indirect subsidiaries, or otherwise interfere with the relationship of the Company or its direct or indirect subsidiaries with, (a) any person who is employed by the Company or its direct or
indirect subsidiaries (including any independent sales representatives or organizations), or (b) any client or customer of the Company or its direct or indirect subsidiaries. 

 
 

           7.5    Assignment of Developments.     The Employee assigns and agrees to assign without further
compensation to the Company and its successors, assigns or designees, all of the Employee's right, title
and interest in and to all Business Opportunities and Intellectual Property (as those terms are defined below), and further acknowledges and agrees that all Business Opportunities and Intellectual
Property constitute the exclusive property of the Company. 

        For
purposes of this Agreement, "Business Opportunities" means all business ideas, prospects, proposals or
other opportunities pertaining to the lease, acquisition, exploration, production, gathering or marketing of hydrocarbons and related products and the exploration potential of geographical areas on
which hydrocarbon exploration prospects are located, which are developed by the Employee during the Employment Term, or originated by any third party and brought to the attention of the Employee
during the Employment Term, together with information relating thereto (including, without limitation, geological and seismic data and interpretations thereof, whether in the form of maps, charts,
logs, seismographs, calculations, summaries, memoranda, opinions or other written or charted means). 

        For
purposes of this Agreement, "Intellectual Property" shall mean all ideas, inventions, discoveries,
processes, designs, methods, substances, articles, computer programs and improvements (including, without limitation, enhancements to, or further interpretation or processing of, information that was
in the possession of the Employee prior to the date of this Agreement), whether or not patentable or copyrightable, which do not fall within the definition of Business Opportunities, which the
Employee discovers, conceives, invents, creates or develops, alone or with others, during the Employment Term, if such discovery, conception, invention, creation or development (A) occurs in
the course of the Employee's employment with the Company, or (B) occurs with the use of any of the time, materials or facilities of the Company or its direct or indirect subsidiaries, or
(C) in the good faith judgment of the Board, relates or pertains in any material way to the purposes, activities or affairs of the Company or its direct or indirect subsidiaries. 

 
 

           7.6    Injunctive Relief.     The Employee acknowledges that a breach of any of the covenants contained in
this Section 7 may result in material,
irreparable injury to the Company for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of such a breach or
threat of breach, the Company will be entitled to obtain a temporary restraining order and/or a preliminary or permanent injunction restraining the Employee from engaging in activities prohibited by
this Section 7 or such other relief as may be required to specifically enforce any of the covenants in this Section 7. To the
extent that the Company seeks a temporary restraining order (but not a preliminary or permanent injunction), the Employee agrees that a temporary restraining order may be obtained  ex parte. 

11

 

 
 

           7.7    Adjustment of Covenants.     The parties consider the covenants and restrictions contained in this
Section 7 to be reasonable. However, if and when any
such covenant or restriction is found to be void or unenforceable and would have been valid had some part of it been deleted or had its scope of application been modified, such covenant or restriction
will be deemed to have been applied with such modification as would be necessary and consistent with the intent of the parties to have made it valid, enforceable and effective. 

 
 

           7.8    Forfeiture Provision.     

        (a)    Detrimental Activities.    If the Employee engages in any activity that violates any covenant or restriction
contained in this Section 7, in addition to any other remedy the Company may have at law or in equity, (i) the Employee will be entitled to no further
payments or benefits from the Company under this Agreement or otherwise, except for any payments or benefits required to be made or provided under applicable law, (ii) all unexercised Unit
options, restricted Units and other forms of equity compensation held by or credited to the Employee will terminate effective as of the date on which the Employee engages in that activity, unless
terminated sooner by operation of another term or condition of this Agreement or other applicable plans and agreements, and (iii) any exercise, payment or delivery pursuant to any equity
compensation award that occurred within one year prior to the date on which the Employee engages in that activity may be rescinded within one year after the first date that a majority of the members
of the Board first became aware that the Employee engaged in that activity. In the event of any such rescission, the Employee will pay to the Company the amount of any gain realized or payment
received as a result of the rescinded exercise, payment or delivery, in such manner and on such terms and conditions as may be required. 

        (b)    Right of Set-Off.    The Employee consents to a deduction from any amounts the Company owes the
Employee from time to time (including amounts owed as wages or other compensation, fringe benefits, or vacation pay, as well as any other amounts owed to the Employee by the Company), to the extent of
the amounts the Employee owes the Company under Section 7.8(a) above. Whether or not the Company elects to make any set-off in whole or in part, if the
Company does not recover by means of set-off the full amount the Employee owes, calculated as set forth above, the Employee agrees to pay immediately the unpaid balance to the Company. In
the discretion of the Board, reasonable interest may be assessed on the amounts owed, calculated from the later of (i) the date the Employee engages in the prohibited activity and
(ii) the applicable date of exercise, payment or delivery. 

8.     Miscellaneous.  

 
 
        8.1    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. 

 
 

           8.2    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 to be performed by any other 

12

 

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. 

 
 

           8.3    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. 

 
 

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

 
 

          8.5    Consent to Jurisdiction and Service of Process.     

        (a)    Section 7 Disputes.    In the event of any dispute, controversy or claim between the Company and the
Employee arising out of or relating to the interpretation, application or enforcement of the provisions of Section 7, the Company and the Employee agree and consent
to the personal jurisdiction of the state and local courts of Allegheny County, Pennsylvania and/or the United States District Court for the Western District of Pennsylvania for resolution of the
dispute, controversy or claim, and that those courts, and only those courts, will have jurisdiction to determine any dispute, controversy or claim related to, arising under or in connection with
Section 7 of this Agreement. The Company and the Employee also agree that those courts are convenient forums for the parties to any such dispute, controversy or
claim and for any potential witnesses and that process issued out of any such court or in accordance with the rules of practice of that court may be served by mail or other forms of substituted
service to the Company at the address of its principal executive offices and to the Employee at his last known address as reflected in the Company's records. 

        (b)    Disputes Other Than Under Section 7.    In the event of any dispute relating to this Agreement, other
than a dispute relating solely to Section 7, 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 Commercial Mediation
Rules 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 will be finally settled by arbitration administered by the American Arbitration
Association in accordance with the provisions of its Commercial Arbitration Rules. 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 his or its desire to have the question settled by arbitration, then the arbitrator will be selected pursuant to the procedures of the
American Arbitration Association (the "AAA") in Pittsburgh, Pennsylvania. The determination reached in such arbitration
will be final
and binding on all parties. Enforcement of the determination by such arbitrator may be sought in any court of competent jurisdiction. Unless otherwise agreed by the parties, any such arbitration will
take place in Pittsburgh, Pennsylvania, and will be conducted in accordance with the Commercial Arbitration Rules of the AAA. 

 
 

           8.6    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. 

13

 

 
 

           8.7    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:
Chairman of the Board

Linn Energy, L.L.C.

Southmark Employee Suites, Suite 100

1700 North Highland Road

Pittsburgh, Pennsylvania 15241 

to
the Employee, to: 

Michael
C. Linn

Southmark Employee Suites, Suite 100

1700 North Highland Road

Pittsburgh, Pennsylvania 15241 

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

 
 

           8.8    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. 

 
 

          8.9    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. 

 
 

           8.10    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. 

 
 

           8.11    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). 

 
 

           8.12    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 his 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 his valid and binding obligation, enforceable in accordance with its terms. 

14

 

9.     Registration Rights. 

        9.1   Following
the earlier to occur of eighteen (18) months following the IPO or the date on which Quantum Energy Partners II, LP holds less than fifty percent
(50%) of the number of Units held by it immediately following the IPO (the "Registration Rights Effective Date"), the
Employee will have the registration rights set forth in Section 9.2. 

        9.2   If
at any time after the Registration Rights Effective Date Linn Energy proposes to file a registration statement (including a shelf registration statement) for the sale
of Units to the public for its own account or for the account of any Unitholder, then the Employee will be entitled to request inclusion of all Units held by him that have not been issued pursuant to
an effective registration statement ("Registrable Securities") in accordance with and subject to terms and provisions
substantially identical to the piggyback registration rights of the Class Q Members in Article 6 of the Stakeholders' Agreement dated as of June 2, 2005, by and among Linn Energy,
Quantum Energy Partners II, LP, Clark Partners I, L.P., Kings Highway Investment, LLC, Wauwinet Energy Partners, LLC, the Employee, Roland P. Keddie and Gerald W. Merriam.
Notwithstanding the foregoing, in the event of a reduction in the number of Units eligible to be included in an underwritten offering as provided in Section 6.4(b) of the Stakeholders'
Agreement, the Employee acknowledges and agrees that any Units he requests be included in such an offering will be reduced or eliminated first before any reduction in Units is made as provided in
Section 6.4(b) of the Stakeholders' Agreement. 

        9.3   Any
Registrable Security held by the Employee will cease to be a Registrable Security hereunder when (i) a registration statement covering such Registrable
Security has been declared effective by the United States Securities and Exchange Commission and such Registrable Security has been sold or disposed of pursuant to such effective registration
statement; (ii) such Registrable Security has been disposed of pursuant to any section of Rule 144 (or any similar provision then in force under the Securities Act of 1933, as amended,
and the rules and regulations of the SEC promulgated thereunder); or (c) such Registrable Security is held by Linn Energy or one of its subsidiaries. 

[Signature page follows]

15

 

        IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of September                         , 2005, but effective
as of the Effective Date. 

	 	 	LINN OPERATING, INC.
	

 	
 	

By:	
 	

/s/  KOLJA ROCKOV      

	 	 	Name:	 	Kolja Rockov
	 	 	Title:	 	Executive Vice President and Chief

Financial Officer
	

 	
 	
EMPLOYEE
	

 	
 	

/s/  MICHAEL C. LINN      
Michael C. Linn
	

 	
 	
For the limited purposes set forth herein:
	

 	
 	
LINN ENERGY, LLC
	

    	
 	

By:	
 	

/s/  MICHAEL C. LINN      

	    	 	Name:	 	Michael C. Linn

	    	 	Title:	 	President and Chief Executive Officer

16

 
 

EXHIBIT A    
    
    APPROVED OUTSIDE ACTIVITIES AS OF EFFECTIVE DATE  
    

        Working Interest in the following: 

	•
	T &
F Exploration—Doman #1 & Power Land #1

	•
	Bucher
Exploration—Pardee #3

	•
	Stevens
Gas Company—Garton 

        Various
working interests and overriding royalty interests in numerous wells with North Coast Energy, Great Lakes Energy Partners, Energy Development Corporation, Columbia Natural
Resources, Plains Marketing, L.P. and Mountainside Oil & Gas, 

        Limited
Partnership Interest in wells owned by Allegheny Interest as the General Partner. 

        Managing
Income from Allegheny Interest—Limited Partnership. 

        Outside
Activities other than Oil & Gas Investments: 

        1.     Current
Board Member and Vice Chairman of the Independent Petroleum Association of America. 

        2.     Current
Board Member of the Natural Gas Supply Association of America. 

        3.     Current
Board Member of the National Petroleum Council. 

        4.     Current
Board Member of the Natural Gas Council. 

QuickLinks

Exhibit 10.11

1.1 Employment; Titles; Reporting.

1.2 Duties.

1.3 Place of Employment.

3.1 Base Salary.

3.2 Annual Bonus Compensation.

3.3 Long-Term Incentive Compensation.

3.4 IPO Success Payment.

4.1 Reimbursement of Expenses.

4.2 Vacation.

4.3 Other Employee Benefits.

5.1 Death.

5.2 Termination by the Company.

5.3 Termination by the Employee.

5.4 Notice of Termination.

5.5 Disability.

6.1 Death.

6.2 Disability.

6.3 By the Company for Cause or the Employee Without Good Reason.

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

6.5 Severance Benefits Not Includable for Employee Benefits Purposes.

6.6 Exclusive Severance Benefits.

6.7 Additional Payments by the Company.

7.1 Confidential Information.

7.2 Return of Property.

7.3 Non-Compete Obligations.

7.4 Non-Solicitation.

7.5 Assignment of Developments.

7.6 Injunctive Relief.

7.7 Adjustment of Covenants.

7.8 Forfeiture Provision.

8.1 Assignment; Successors; Binding Agreement.

8.2 Modification and Waiver.

8.3 Entire Agreement.

8.4 Governing Law.

8.5 Consent to Jurisdiction and Service of Process.

8.6 Withholding of Taxes.

8.7 Notices.

8.8 Severability.

8.9 Counterparts.

8.10 Headings.

8.11 Construction.

8.12 Capacity; No Conflicts.

EXHIBIT A APPROVED OUTSIDE ACTIVITIES AS OF EFFECTIVE DATE

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