Document:

exv10w1

 

EXHIBIT 10.1

BRIGHAM EXPLORATION COMPANY

$125,000,000 9 5/8% Senior Notes due 2014

PURCHASE AGREEMENT

dated April 12, 2006

Banc of America Securities LLC

Credit Suisse Securities (USA) LLC

Greenwich Capital Markets, Inc.

BNP Paribas Securities Corp.

Hibernia South Coast Capital, Inc.

Natexis Bleichroeder, Inc.

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 
	Section 1.	 	Representations and Warranties	 	 	3	 
	 

	 	(a)
	 	No Registration Required
	 	 	3	 
	 

	 	(b)
	 	No Integration of Offerings or General Solicitation
	 	 	3	 
	 

	 	(c)
	 	Eligibility for Resale under Rule 144A
	 	 	3	 
	 

	 	(d)
	 	The Offering Memorandum
	 	 	4	 
	 

	 	(e)
	 	The Purchase Agreement
	 	 	4	 
	 

	 	(f)
	 	The Registration Rights Agreement
	 	 	4	 
	 

	 	(g)
	 	The DTC Agreement
	 	 	4	 
	 

	 	(h)
	 	Authorization of the Notes, the Exchange Notes and the Guarantees
	 	 	5	 
	 

	 	(i)
	 	Authorization of the Indenture
	 	 	5	 
	 

	 	(j)
	 	Description of the Securities and the Indenture
	 	 	6	 
	 

	 	(k)
	 	No Material Adverse Change
	 	 	6	 
	 

	 	(l)
	 	Independent Accountants
	 	 	6	 
	 

	 	(m)
	 	Independent Petroleum Engineers
	 	 	6	 
	 

	 	(n)
	 	Preparation of the Financial Statements
	 	 	7	 
	 

	 	(o)
	 	Incorporation and Good Standing of the Company and its Subsidiaries
	 	 	7	 
	 

	 	(p)
	 	Capitalization and Other Capital Stock Matters
	 	 	8	 
	 

	 	(q)
	 	NASDAQ Listing
	 	 	8	 
	 

	 	(r)
	 	Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required
	 	 	8	 
	 

	 	(s)
	 	No Material Actions or Proceedings
	 	 	9	 
	 

	 	(t)
	 	Intellectual Property Rights
	 	 	10	 
	 

	 	(u)
	 	All Necessary Permits, etc
	 	 	10	 
	 

	 	(v)
	 	Title to Properties
	 	 	10	 
	 

	 	(w)
	 	Tax Law Compliance
	 	 	11	 
	 

	 	(x)
	 	Not an Investment Company
	 	 	11	 
	 

	 	(y)
	 	Insurance
	 	 	11	 
	 

	 	(z)
	 	No Price Stabilization or Manipulation
	 	 	12	 
	 

	 	(aa)
	 	Solvency
	 	 	12	 
	 

	 	(bb)
	 	Compliance with Sarbanes-Oxley
	 	 	12	 
	 

	 	(cc)
	 	MD&A
	 	 	12	 
	 

	 	(dd)
	 	Company’s Accounting System
	 	 	12	 
	 

	 	(ee)
	 	Disclosure Controls and Procedures
	 	 	13	 
	 

	 	(ff)
	 	Compliance with Environmental Laws
	 	 	13	 
	 

	 	(gg)
	 	Periodic Review of Costs of Environmental Compliance
	 	 	14	 
	 

	 	(hh)
	 	ERISA Compliance
	 	 	14	 
	 

	 	(ii)
	 	Compliance with Labor Laws
	 	 	15	 
	 

	 	(jj)
	 	Related Party Transactions
	 	 	15	 
	 

	 	(kk)
	 	No Unlawful Contributions or Other Payments
	 	 	16	 
	 

	 	(ll)
	 	Compliance with Regulation S
	 	 	16	 
	 

	 	(mm)
	 	Taxes; Fees
	 	 	16	 
	Section 2.	 	Purchase, Sale and Delivery of the Securities	 	 	16	 
	 

	 	(a)
	 	The Securities
	 	 	17	 
	 

	 	(b)
	 	The Closing Date
	 	 	17	 
	 

	 	(c)
	 	Delivery of the Securities
	 	 	17	 
	 

	 	(d)
	 	Initial Purchasers as Qualified Institutional Buyers
	 	 	17	 

i

 

	 	 	 	 	 	 	 	 	 
	Section 3.	 	Additional Covenants	 	 	17	 
	 

	 	(a)
	 	Preparation of Final Offering Memorandum; Initial Purchasers’ Review of
Proposed Amendments and Supplements
	 	 	17	 
	 

	 	(b)
	 	Amendments and Supplements to the Final Offering Memorandum and Other Securities Act Matters
	 	 	18	 
	 

	 	(c)
	 	Copies of the Offering Memorandum
	 	 	19	 
	 

	 	(d)
	 	Blue Sky Compliance
	 	 	19	 
	 

	 	(e)
	 	Use of Proceeds
	 	 	19	 
	 

	 	(f)
	 	The Depositary
	 	 	19	 
	 

	 	(g)
	 	Additional Issuer Information
	 	 	19	 
	 

	 	(h)
	 	Agreement Not To Offer or Sell Additional Securities
	 	 	20	 
	 

	 	(i)
	 	Future Reports to the Initial Purchasers
	 	 	20	 
	 

	 	(j)
	 	No Integration
	 	 	20	 
	 

	 	(k)
	 	No Restricted Resales
	 	 	21	 
	 

	 	(l)
	 	Legended Securities
	 	 	21	 
	 

	 	(m)
	 	PORTAL
	 	 	21	 
	Section 4.	 	Payment of Expenses	 	 	21	 
	Section 5.	 	Conditions of the Obligations of the Initial Purchasers	 	 	22	 
	 

	 	(a)
	 	Accountants’ Comfort Letter
	 	 	22	 
	 

	 	(b)
	 	No Material Adverse Change or Ratings Agency Change
	 	 	22	 
	 

	 	(c)
	 	Opinion of Counsel for the Company
	 	 	23	 
	 

	 	(d)
	 	Opinion of Counsel for the Initial Purchasers
	 	 	23	 
	 

	 	(e)
	 	Officers’ Certificate
	 	 	23	 
	 

	 	(f)
	 	Engineers Letter
	 	 	23	 
	 

	 	(g)
	 	PORTAL Listing
	 	 	23	 
	 

	 	(h)
	 	Registration Rights Agreement and Indenture
	 	 	24	 
	 

	 	(i)
	 	Additional Documents
	 	 	24	 
	Section 6.	 	Reimbursement of Initial Purchasers’ Expenses	 	 	24	 
	Section 7.	 	Offer, Sale and Resale Procedures	 	 	24	 
	Section 8.	 	Indemnification	 	 	26	 
	 

	 	(a)
	 	Indemnification of the Initial Purchasers
	 	 	26	 
	 

	 	(b)
	 	Indemnification of the Company and the Guarantors
	 	 	27	 
	 

	 	(c)
	 	Notifications and Other Indemnification Procedures
	 	 	28	 
	 

	 	(d)
	 	Settlements
	 	 	29	 
	Section 9.	 	Contribution	 	 	29	 
	Section 10.	 	Termination of this Agreement	 	 	31	 
	Section 11.	 	Representations and Indemnities to Survive Delivery	 	 	31	 
	Section 12.	 	Notices	 	 	31	 
	Section 13.	 	Successors	 	 	32	 
	Section 14.	 	Partial Unenforceability	 	 	32	 
	Section 15.	 	Governing Law Provisions	 	 	33	 
	 

	 	(a)
	 	Consent to Jurisdiction
	 	 	33	 
	Section 16.	 	Default of One or More of the Several Initial Purchasers	 	 	33	 
	Section 17.	 	No Advisory or Fiduciary Responsibility	 	 	34	 
	Section 18.	 	General Provisions	 	 	35	 

ii

 

PURCHASE AGREEMENT

April 12, 2006

BANC OF AMERICA SECURITIES LLC

CREDIT SUISSE SECURITIES (USA) LLC

GREENWICH CAPITAL MARKETS, INC.

BNP PARIBAS SECURITIES CORP.

HIBERNIA SOUTH COAST CAPITAL, INC.

NATEXIS BLEICHROEDER, INC.

     As Initial Purchasers

c/o Banc of America Securities LLC

9 West 57th Street

New York, New York 10019

Ladies and Gentlemen:

     Introductory. Brigham Exploration Company, a Delaware corporation (the “Company”), proposes
to issue and sell to the several initial purchasers named in Schedule A (the “Initial Purchasers”),
acting severally and not jointly, the respective amounts set forth in such Schedule A of
$125,000,000 aggregate principal amount of the Company’s 9 5/8% Senior Notes due 2014 (the “Notes”).
Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Greenwich Capital Markets,
Inc., BNP Paribas Securities Corp., Hibernia South Coast Capital, Inc. and Natexis Bleichroeder,
Inc. have agreed to act as the several Initial Purchasers in connection with the offering and sale
of the Securities (as defined below).

     The Securities will be issued pursuant to an indenture, to be dated as of April 20, 2006 (the
“Indenture”), among the Company, the Guarantors (as defined below), and Wells Fargo Bank, N.A., as
trustee (the “Trustee”). Securities issued in book-entry form will be issued in the name of Cede &
Co., as nominee of The Depository Trust Company (the “Depositary”) pursuant to a blanket issuer
letter of representations, to be dated on or before the Closing Date (as defined in Section 2
hereof) (the “DTC Agreement”), among the Company and the Depositary.

     The holders of the Securities will be entitled to the benefits of a registration rights
agreement, to be dated as of April 20, 2006 (the “Registration Rights Agreement”), among the
Company, the Guarantors and the Initial Purchasers, pursuant to which the Company and the
Guarantors will agree to file with the Commission (as defined below), under the circumstances set
forth therein, (i) a registration statement under the Securities Act (as defined below) relating to
another series of debt securities of the Company with terms substantially identical to the Notes
(the “Exchange Notes”) to be offered in exchange for the Notes (the “Exchange Offer”) and (ii) to
the extent required

 

 

by the Registration Rights Agreement, a shelf registration statement pursuant to Rule 415 of
the Securities Act relating to the resale by certain holders of the Notes, and in each case, to use
its best efforts to cause such registration statements to be declared effective.

     The payment of principal of, premium, if any, and interest on the Notes will be fully and
unconditionally guaranteed on a senior unsecured basis, jointly and severally, by Brigham, Inc., a
Nevada corporation, and Brigham Oil & Gas, L.P., a Delaware limited partnership, and any subsidiary
of the Company that executes an additional guarantee after the Closing Date in accordance with the
terms of the Indenture, and their respective successors and assigns (collectively, the
“Guarantors”), pursuant to their guarantees (the “Guarantees”). The Notes and the Guarantees
attached thereto are herein collectively referred to as the “Securities;” and the Exchange Notes
and the Guarantees attached thereto are herein collectively referred to as the “Exchange
Securities.”

     The Company understands that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and in the Pricing Disclosure Package
(as defined below) and agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Securities to purchasers (the “Subsequent Purchasers”) at any
time after the time this Agreement is executed by the parties hereto (the “Time of Execution”).
The Securities are to be offered and sold to or through the Initial Purchasers without being
registered with the Securities and Exchange Commission (the “Commission”) under the Securities Act
of 1933 (as amended, the “Securities Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder), in reliance upon exemptions therefrom.
Pursuant to the terms of the Securities and the Indenture, investors who acquire Securities shall
be deemed to have agreed that Securities may only be resold or otherwise transferred, after the
date hereof, if such Securities are registered for sale under the Securities Act or if an exemption
from the registration requirements of the Securities Act is available (including the exemptions
afforded by Rule 144A under the Securities Act (“Rule 144A”) or Regulation S under the Securities
Act (“Regulation S”)).

     The Company has prepared and delivered to each Initial Purchaser copies of a Preliminary
Offering Memorandum, dated April 5, 2006 (the “Preliminary Offering Memorandum”), and has prepared
and delivered to each Initial Purchaser copies of a Pricing Supplement, dated April 12, 2006 (the
“Pricing Supplement”), describing the terms of the Securities, each for use by such Initial
Purchaser in connection with its solicitation of offers to purchase the Securities. The
Preliminary Offering Memorandum and the Pricing Supplement are herein referred to as the “Pricing
Disclosure Package.” Promptly after the Time of Execution, the Company will prepare and deliver to
each Initial Purchaser a final offering memorandum dated the date hereof (the “Final Offering
Memorandum”).

     The Company hereby confirms its agreements with the Initial Purchasers as follows:

2

 

          SECTION 1. Representations and Warranties. Each of the Company and the Guarantors, jointly
and severally, hereby represents, warrants and covenants to each Initial Purchaser that, as of the
date hereof and as of the Closing Date (references in this Section 1 to the “Offering Memorandum”
are to (x) the Pricing Disclosure Package in the case of representations and warranties made as of
the date hereof and (y) the Final Offering Memorandum in the case of representations and warranties
made as of the Closing Date):

     (a) No Registration Required. Subject to compliance by the Initial Purchasers with
the representations and warranties set forth in Section 2 hereof and with the procedures
set forth in Section 7 hereof, it is not necessary in connection with the offer, sale and
delivery of the Securities to the Initial Purchasers and to each Subsequent Purchaser in
the manner contemplated by this Agreement and the Offering Memorandum to register the
Securities under the Securities Act or, until such time as the Exchange Securities are
issued pursuant to an effective registration statement, to qualify the Indenture under the
Trust Indenture Act of 1939 (the “Trust Indenture Act,” which term, as used herein,
includes the rules and regulations of the Commission promulgated thereunder).

     (b) No Integration of Offerings or General Solicitation. None of the Company, the
Guarantors or any of their respective subsidiaries, or its affiliates (as such term is
defined in Rule 501 under the Securities Act) (each, an “Affiliate”), or any person acting
on its or any of their behalf (other than the Initial Purchasers, as to whom no
representation or warranty is made) have, directly or indirectly, solicited any offer to
buy or offered to sell, or will, directly or indirectly, solicit any offer to buy or offer
to sell, in the United States or to any United States citizen or resident, any security
which is or would be integrated with the sale of the Securities in a manner that would
require the Securities to be registered under the Securities Act. None of the Company, the
Guarantors, any of their subsidiaries or its Affiliates, or any person acting on its or any
of their behalf (other than the Initial Purchasers, as to whom no representation or
warranty is made) have engaged or will engage, in connection with the offering of the
Securities, in any form of general solicitation or general advertising within the meaning
of Rule 502 under the Securities Act. With respect to those Securities sold in reliance
upon Regulation S, (i) none of the Company, the Guarantors, any of their subsidiaries or
Affiliates or any person acting on its or any of their behalf (other than the Initial
Purchasers, as to whom no representation or warranty is made) has engaged or will engage in
any directed selling efforts within the meaning of Regulation S and (ii) each of the
Company, the Guarantors, any of their subsidiaries or Affiliates and any person acting on
its or their behalf (other than the Initial Purchasers, as to whom no representation or
warranty is made) has complied and will comply with the offering restrictions set forth in
Regulation S.

     (c) Eligibility for Resale under Rule 144A. The Securities are eligible for resale
pursuant to Rule 144A and will not be, at the Closing Date, of the same class as securities
listed on a national securities exchange registered under

3

 

Section 6 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or
quoted in a U.S. automated interdealer quotation system.

     (d) The Offering Memorandum. Neither the Pricing Disclosure Package, as of the Time
of Execution, nor the Final Offering Memorandum, as of its date or (as amended or
supplemented in accordance with Section 3(a), if applicable) as of the Closing Date,
contains or represents an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that this representation, warranty and
agreement shall not apply to statements in or omissions from the Pricing Disclosure
Package, the Final Offering Memorandum or any amendment or supplement thereto made in
reliance upon and in conformity with information furnished to the Company in writing by any
Initial Purchaser through Banc of America Securities LLC expressly for use in the Pricing
Disclosure Package, the Final Offering Memorandum or amendment or supplement thereto, as
the case may be. The Pricing Disclosure Package contains, and the Final Offering
Memorandum will contain, as of its date, all the information specified in, and meeting the
requirements of, Rule 144A. The Company has not distributed and will not distribute, prior
to the later of the Closing Date and the completion of the Initial Purchasers’ distribution
of the Securities, any offering material in connection with the offering and sale of the
Securities other than the Pricing Disclosure Package and the Final Offering Memorandum.

     (e) The Purchase Agreement. This Agreement has been duly authorized, executed and
delivered by, and is a valid and binding agreement of, the Company and each of the
Guarantors, enforceable against the Company and each of the Guarantors in accordance with
its terms, except as rights to indemnification hereunder may be limited by applicable law
and except as the enforcement hereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles.

     (f) The Registration Rights Agreement. The Registration Rights Agreement has been
duly authorized and, on the Closing Date, will have been duly executed and delivered by,
and will constitute a valid and binding agreement of, the Company and the Guarantors,
enforceable against the Company and each of the Guarantors in accordance with its terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of
creditors or by general equitable principles and except as rights to indemnification under
the Registration Rights Agreement may be limited by applicable law.

     (g) The DTC Agreement. The DTC Agreement has been duly authorized and, on the Closing
Date, will have been duly executed and delivered by, and (assuming the due authorization,
execution and delivery thereof by the

4

 

other parties thereto) will constitute a valid and binding agreement of, the Company,
enforceable against the Company in accordance with its terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles.

     (h) Authorization of the Notes, the Exchange Notes and the Guarantees. (i) The Notes
to be purchased by the Initial Purchasers from the Company are in the form contemplated by
the Indenture, have been duly authorized for issuance and sale pursuant to this Agreement
and the Indenture and, at the Closing Date, will have been duly executed by the Company
and, when authenticated in the manner provided for in the Indenture and delivered against
payment of the purchase price therefor, will constitute valid and binding agreements of the
Company, enforceable against the Company in accordance with their terms, except as the
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws relating to or affecting the rights and remedies of creditors or by
general equitable principles and will be entitled to the benefits of the Indenture. (ii)
The Exchange Notes have been duly and validly authorized for issuance by the Company, and
when issued and authenticated in accordance with the terms of the Indenture, the
Registration Rights Agreement and the Exchange Offer, will constitute valid and binding
obligations of the Company, enforceable against the Company in accordance with their terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium, or similar laws relating to or affecting enforcement of the rights and remedies
of creditors or by general principles of equity and will be entitled to the benefits of the
Indenture. (iii) The Guarantees of the Notes and the Exchange Notes are in the respective
forms contemplated by the Indenture, have been duly authorized for issuance and sale
pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly
executed by each of the Guarantors and, when the Notes and the Exchange Notes have been
authenticated in the manner provided for in the Indenture and delivered against payment of
the purchase price therefor, will constitute valid and binding agreements of each such
Guarantor, enforceable against it in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles and will be entitled to the benefits of the Indenture.

     (i) Authorization of the Indenture. The Indenture has been duly authorized by the
Company and the Guarantors and, at the Closing Date, will have been duly executed and
delivered by, and will constitute a valid and binding agreement of, the Company and the
Guarantors, enforceable against the Company and each of the Guarantors in accordance with
its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles.

5

 

     (j) Description of the Securities and the Indenture. The Securities, the Exchange
Securities and the Indenture conform, or will conform, in all material respects to the
respective statements relating thereto contained in the Offering Memorandum.

     (k) No Material Adverse Change. Except as otherwise disclosed in the Offering
Memorandum, subsequent to the respective dates as of which information is given in the
Offering Memorandum: (i) there has been no material adverse change, or any development
that could reasonably be expected to result in a material adverse change, in the condition,
financial or otherwise, or in the earnings, business, operations or prospects, whether or
not arising from transactions in the ordinary course of business, of the Company, the
Guarantors and their respective subsidiaries, considered as one entity (any such change or
development is called a “Material Adverse Change”); (ii) the Company, the Guarantors and
their respective subsidiaries, considered as one entity, have not incurred any material
liability or obligation, indirect, direct or contingent, not in the ordinary course of
business, nor entered into any material transaction or agreement not in the ordinary course
of business and (iii) there has been no dividend or distribution of any kind declared, paid
or made by the Company, the Guarantors or their respective subsidiaries, on any class of
capital stock or other equity interest (other than cash dividends with respect to the
Company’s Series A Preferred Stock, $0.01 par value, $20 stated and redemption value,
maturing on October 31, 2010, as disclosed in the Offering Memorandum) or repurchase or
redemption by the Company, the Guarantors or any of their respective subsidiaries of any
class of capital stock or other equity interest.

     (l) Independent Accountants. PricewaterhouseCoopers LLP, which expressed its opinion
with respect to the financial statements (which term as used in this Agreement includes the
related notes thereto) of the Company and its subsidiaries filed with the Commission and
included in the Offering Memorandum, are independent public or certified public accountants
within the meaning of Regulation S-X under the Securities Act and the Exchange Act, and any
non-audit services provided by PricewaterhouseCoopers LLP to the Company or any of the
Guarantors have been approved by the Audit Committee of the Board of Directors of the
Company.

     (m) Independent Petroleum Engineers. The written engineering reports prepared by
Cawley, Gillespie & Associates, Inc. (“Cawley, Gillespie”), an oil and gas engineering
consulting firm, as of December 31, 2005, setting forth the engineering values attributable
to the oil and gas properties of the Company and its subsidiaries accurately reflect in all
material respects the ownership interests of the Company and its subsidiaries in the
properties therein as of December 31, 2005, except as otherwise disclosed in the Offering
Memorandum. The information furnished by the Company to Cawley, Gillespie for purposes of
preparing its report, including, without limitation, production, costs of operation and
development, agreements relating to current and future operations and sales of

6

 

production, was true, correct and complete in all material respects on the date
supplied and was prepared in accordance with customary industry practices. Cawley,
Gillespie, independent petroleum consultants, who prepared estimates of the extent and
value of proved oil and natural gas reserves, are independent with respect to the Company
and its subsidiaries.

     (n) Preparation of the Financial Statements. The financial statements, together with
the related schedules and notes, included in the Offering Memorandum present fairly the
consolidated financial position of the entities to which they relate as of and at the dates
indicated and the results of their operations and cash flows for the periods specified.
Such financial statements have been prepared in conformity with generally accepted
accounting principles applied on a consistent basis throughout the periods involved, except
as may be expressly stated in the related notes thereto. The financial statements and the
financial information included in the Offering Memorandum comply as to form with the
requirements applicable to registration statements on Form S-1 under the Securities Act.
The financial data set forth in the Offering Memorandum under the captions “Offering
Summary – Summary Financial Information” and “Selected Consolidated Financial Data” fairly
present the information set forth therein on a basis consistent with that of the audited
financial statements contained in the Offering Memorandum.

     (o) Incorporation and Good Standing of the Company and its Subsidiaries. Each of the
Company and its subsidiaries has been duly incorporated or formed and is validly existing
as a corporation, limited partnership or limited liability company, as the case may be, in
good standing under the laws of the jurisdiction of its incorporation or formation and has
corporate, partnership or company, as the case may be, power and authority to own, lease
and operate its properties and to conduct its business as described in the Offering
Memorandum and, in the case of the Company and the Guarantors, to enter into and perform
its respective obligations under each of this Agreement, the Registration Rights Agreement,
the DTC Agreement, the Securities, the Exchange Securities and the Indenture, as the case
may be, to which it is a party. Each of the Company and each subsidiary is duly qualified
as a foreign corporation, limited partnership or limited liability company, as the case may
be, to transact business and is in good standing or equivalent status in each jurisdiction
in which such qualification is required, whether by reason of the ownership or leasing of
property or the conduct of business, except for such jurisdictions where the failure to so
qualify or to be in good standing would not, individually or in the aggregate, result in a
Material Adverse Change. All of the issued and outstanding capital stock of each
subsidiary has been duly authorized and validly issued, is fully paid and nonassessable and
is owned by the Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance or claim (except as encumbered under the
Company’s senior credit agreement in effect on the date hereof). The Company does not own
or control, directly or indirectly, any

7

 

corporation, association or other entity other than the subsidiaries listed in
Exhibit B hereto.

     (p) Capitalization and Other Capital Stock Matters. At December 31, 2005, on an
actual basis, and on an as adjusted basis, after giving pro forma effect to the issuance
and sale of the Securities pursuant hereto, the Company would have an authorized and
outstanding capitalization as set forth in the Offering Memorandum under the caption
“Capitalization” (other than for subsequent issuances of capital stock, if any, pursuant to
employee benefit plans described in the Offering Memorandum or upon exercise of outstanding
options or warrants described in the Offering Memorandum). All of the outstanding shares
of common stock of the Company (the “Common Stock”) have been duly authorized and validly
issued, are fully paid and nonassessable and have been issued in compliance with federal
and state securities laws. None of the outstanding shares of Common Stock were issued in
violation of any preemptive rights, rights of first refusal or other similar rights to
subscribe for or purchase securities of the Company. There are no authorized or
outstanding options, warrants, preemptive rights, rights of first refusal or other rights
to purchase, or equity or debt securities convertible into or exchangeable or exercisable
for, any capital stock of the Company or any of its subsidiaries other than those
accurately described in the Offering Memorandum. The description of the options or other
rights granted and/or exercised under the Company’s stock option plans set forth in the
Offering Memorandum accurately and fairly describes such options and rights.

     (q) NASDAQ Listing. The Common Stock is registered pursuant to Section 12(b) of the
Exchange Act and is listed on The NASDAQ Stock Market (“NASDAQ”), and the Company has taken
no action designed to, or likely to have the effect of, terminating the registration of the
Common Stock under the Exchange Act or delisting the Common Stock from NASDAQ, nor has the
Company received any notification that the Commission or the NASD, Inc. (the “NASD”) is
contemplating terminating such registration or listing.

     (r) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required. None of the Company, the Guarantors or any of their respective subsidiaries is
in violation of its charter, regulations, by-laws, partnership agreement, limited liability
company agreement or similar constitutive document or is in default (or, with the giving of
notice or lapse of time, would be in default) (“Default”) under any indenture, mortgage,
loan or credit agreement, note, contract, franchise, lease, license or other instrument to
which the Company, any of the Guarantors or any of their respective subsidiaries is a party
or by which it or any of them may be bound (including, without limitation, the Company’s
existing senior credit agreement and the Company’s existing subordinated credit agreement)
or to which any of the property or assets of the Company or any of the Guarantors or any of
their respective subsidiaries is subject (each, an “Existing Instrument”), except for such
Defaults as would not, individually or in the aggregate, result in a Material Adverse
Change. The

8

 

execution, delivery and performance of this Agreement, the Registration Rights
Agreement, the DTC Agreement and the Indenture by the Company and each Guarantor party
thereto, and the issuance and delivery of the Securities and the Exchange Securities, and
consummation of the transactions contemplated hereby and thereby and by the Offering
Memorandum (i) have been duly authorized by all necessary corporate, partnership or
company, as the case may be, action and will not result in any violation of the provisions
of the charter, regulations, by-laws, partnership agreement, operating agreement or other
similar constitutive document of the Company, any Guarantor or any of their respective
subsidiaries, (ii) will not conflict with or constitute a breach of, or Default or a Debt
Repayment Triggering Event (as defined below) under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the Company,
any Guarantor or any of their respective subsidiaries pursuant to, or require the consent
of any other party to, any Existing Instrument, except for such conflicts, breaches,
Defaults, liens, charges or encumbrances as would not, individually or in the aggregate,
result in a Material Adverse Change and such consents as have been obtained and are in full
force and effect, and (iii) will not result in any violation of any law, administrative
regulation or administrative or court decree applicable to the Company, any Guarantor or
any of their respective subsidiaries. No consent, approval, authorization or other order
of, or registration or filing with, any court or other governmental or regulatory authority
or agency, is required for the Company’s and the Guarantors’ execution, delivery and
performance of this Agreement, the Registration Rights Agreement, the DTC Agreement or the
Indenture, to which it is a party, or the issuance and delivery of the Securities or the
Exchange Securities, or consummation of the transactions contemplated hereby and thereby
and by the Offering Memorandum, except such as have been obtained or made by the Company or
the Guarantors and are in full force and effect under the Securities Act, applicable
securities laws of the several states of the United States or provinces of Canada and
except such as may be required by the securities laws of the United States and the several
states of the United States or provinces of Canada with respect to the Company’s
obligations under the Registration Rights Agreement. As used herein, a “Debt Repayment
Triggering Event” means any event or condition which gives, or with the giving of notice or
lapse of time would give, the holder of any note, debenture or other evidence of
indebtedness (or any person acting on such holder’s behalf) the right to require the
repurchase, redemption or repayment of all or a portion of such indebtedness by the
Company, the Guarantors or any of their respective subsidiaries.

     (s) No Material Actions or Proceedings. To the best of the Company’s or any
Guarantor’s knowledge, there are no legal or governmental actions, suits, investigations or
proceedings pending or threatened (i) against or affecting the Company, any Guarantor or
any of their respective subsidiaries or (ii) which has as the subject thereof any property
owned or leased by, the Company, the Guarantors or any of their respective subsidiaries,
which (in any

9

 

such case under (i) or (ii) above) action, suit, investigation or proceeding, if
determined adversely to the Company, such Guarantor or such subsidiary would result in a
Material Adverse Change or adversely affect the consummation of the transactions
contemplated by this Agreement.

     (t) Intellectual Property Rights. The Company, the Guarantors and their respective
subsidiaries own, possess or license sufficient trademarks, trade names, patent rights,
copyrights, licenses, approvals, trade secrets and other similar rights (collectively,
“Intellectual Property Rights”) reasonably necessary to conduct their businesses as now
conducted; and the expected expiration of any such Intellectual Property Rights,
individually or in the aggregate, would not result in a Material Adverse Change. None of
the Company, the Guarantors or any of their respective subsidiaries has received any notice
of infringement or conflict with asserted Intellectual Property Rights of others, which
infringement or conflict, if the subject of an unfavorable decision, ruling or filing would
result in a Material Adverse Change. None of the Company, the Guarantors or any of their
respective subsidiaries is in default under the terms of any license or similar agreement
related to any Intellectual Property Rights necessary to conduct their business as now
conducted or contemplated except as would not result in a Material Adverse Change.

     (u) All Necessary Permits, etc. Each of the Company, the Guarantors and their
respective subsidiaries possess such valid and current certificates, franchises, grants,
authorizations, qualifications, licenses, permits, easements, variances, exceptions,
certifications, registrations, consents, certificates or approvals issued by the
appropriate local, state, federal or foreign regulatory agencies or bodies necessary for it
to own, lease and operate the assets and properties or to conduct their respective
businesses, and none of the Company, the Guarantors or any of their respective
subsidiaries has received any notice of proceedings relating to the revocation,
cancellation or modification of, or non-compliance with, any such certificate,
authorization or permit which, either individually or in the aggregate, if the subject of
an unfavorable decision, ruling or finding, could result in a Material Adverse Change.

     (v) Title to Properties. The Company, the Guarantors and each of their respective
subsidiaries have good and indefeasible title to (i) its oil and gas properties to the
extent included or reflected in the reports of Cawley, Gillespie referenced in Section 1(m)
above and (ii) all of the other properties and assets reflected as owned in the financial
statements referred to in Section 1(n) hereof (or elsewhere in the Offering Memorandum), in
each case (except as encumbered under the Company’s senior credit agreement in effect on
the date hereof) free and clear of any security interests, mortgages, liens, encumbrances,
equities, claims and other title defects, except such as do not materially and adversely
affect the value of such property and do not materially interfere with the use made or
proposed to be made of such property by the Company, such Guarantor or such subsidiary. The
real property, improvements, equipment and personal property

10

 

held under lease by the Company, any Guarantor or any subsidiary are held under valid
and enforceable leases, with such exceptions as do not materially interfere with the use
made or proposed to be made of such real property, improvements, equipment or personal
property by the Company, such Guarantor or such subsidiary.

     (w) Tax Law Compliance. The Company, the Guarantors and their respective subsidiaries
have filed all necessary federal, state and foreign income and franchise tax returns and
have paid all taxes required to be paid by any of them and, if due and payable, any related
or similar assessment, fine or penalty levied against any of them. The Company and each
Guarantor have made, in all material respects, accurate charges, accruals and reserves in
the applicable financial statements referred to in Section 1(n) hereof in respect of all
federal, state and foreign income and franchise taxes for all periods as to which the tax
liability of the Company, the Guarantors, or any of their respective subsidiaries has not
been finally determined.

     (x) Not an Investment Company. The Company and the Guarantors have been advised of
the rules and requirements under the Investment Company Act of 1940, as amended (the
“Investment Company Act,” which term, as used herein, includes the rules and regulations of
the Commission promulgated thereunder). The Company and the Guarantors and their
respective subsidiaries are not, and after receipt of payment for the Securities will not
be, an “investment company” within the meaning of Investment Company Act and will each
conduct their business in a manner so that they will not become subject to the Investment
Company Act.

     (y) Insurance. Each of the Company the Company and its subsidiaries are insured by
recognized, financially sound institutions with policies in such amounts and with such
deductibles and policy limits and covering such risks as are generally deemed adequate,
appropriate and customary for their businesses including, but not limited to, policies
covering professional liability, malpractice, product liability, employee and customer
health, workers’ compensation, general liability, director and officer, business
interruption, real and personal property owned or leased by the Company and its
subsidiaries against theft, damage, destruction, acts of terrorism and vandalism and
earthquakes. The Company believes it has adequate, sufficient and appropriate coverage
under its policies to cover all of its known litigation and the Company has sufficient
insurance against its litigation reserves therefor, so that it believes there is no need to
take any additional reserve for any such litigation under generally accepted accounting
principles. The Company has no reason to believe that it or any of its subsidiaries will
not be able (i) to renew its existing insurance coverage as and when such policies expire
or (ii) to obtain adequate and comparable coverage from similar institutions as may be
necessary or appropriate to conduct its business as now conducted and at a cost that would
not result in a Material Adverse Change. There are no claims by the Company or any of its
subsidiaries under any current

11

 

insurance policy as to which any insurance company or institution is denying, or will
deny, liability or coverage or defending under a reservation of rights clause.

     (z) No Price Stabilization or Manipulation. None of the Company, the Guarantors or
any of their respective Affiliates has taken or will take, directly or indirectly, any
action designed to or that might be reasonably expected to cause or result in stabilization
or manipulation of the price of any security of the Company to facilitate the sale or
resale of the Securities.

     (aa) Solvency. Each of the Company and the Guarantors is, and immediately after the
Closing Date will be, Solvent. As used herein, the term “Solvent” means, with respect to
any such person on a particular date, that on such date (i) the fair market value of the
assets of such person is greater than the total amount of liabilities (including contingent
liabilities) of such person, (ii) the present fair salable value of the assets of such
person is greater than the amount that will be required to pay the probable liabilities of
such person on its debts as they become absolute and matured, (iii) such person is able to
realize upon its assets and pay its debts and other liabilities, including contingent
obligations, as they mature and (iv) such person does not have unreasonably small capital.

     (bb) Compliance with Sarbanes-Oxley. The Company and its subsidiaries and their
respective officers and directors are in compliance in all material respects with the
applicable provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act,” which
term, as used herein, includes the rules and regulations of the Commission promulgated
thereunder). The principal executive officer and the principal financial officer of the
Company have made all certifications required by the Sarbanes-Oxley Act, and the statements
contained in any such certification are complete and correct.

     (cc) MD&A. There are no transactions, arrangements or other relationships, including
but not limited to off balance sheet transactions, which would be required to be included
in the Offering Memorandum if the Offering Memorandum were a registration statement on Form
S-1 by Item 303 of Regulation S-K under the Securities Act which are not so described or
described as required.

     (dd) Company’s Accounting System. The Company and its subsidiaries maintain a system
of accounting controls that is in compliance in all material respects with the
Sarbanes-Oxley Act and is sufficient to provide reasonable assurances that: (i)
transactions are executed in accordance with management’s general or specific
authorization; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to
maintain accountability for assets; (iii) access to assets is permitted only in accordance
with management’s general or specific authorization; and (iv) the recorded accountability
for assets is compared with

12

 

existing assets at reasonable intervals and appropriate action is taken with respect
to any differences.

     (ee) Disclosure Controls and Procedures. The Company has established and maintains
disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-14
under the Exchange Act); such disclosure controls and procedures are designed to ensure
that material information relating to the Company and its subsidiaries is made known to the
chief executive officer and chief financial officer of the Company by others within the
Company or any of its subsidiaries, and such disclosure controls and procedures are
reasonably effective to perform the functions for which they were established subject to
the limitations of any such control system; the Company’s auditors and the Audit Committee
of the Board of Directors of the Company have been advised of: (i) any significant
deficiencies or material weaknesses in the design or operation of internal controls which
could adversely affect the Company’s ability to record, process, summarize, and report
financial data; and (ii) any fraud, whether or not material, that involves management or
other employees who have a role in the Company’s internal controls; and since the date of
the most recent evaluation of such disclosure controls and procedures, there have been no
significant changes in internal controls or in other factors that could significantly
affect internal controls, including any corrective actions with regard to significant
deficiencies and material weaknesses.

     (ff) Compliance with Environmental Laws. Except as would not, individually or in the
aggregate, result in a Material Adverse Change: (i) the Company, the Guarantors and each of
their respective subsidiaries have all permits, authorizations and approvals required under
any Environmental Laws (as defined below) and are in compliance with their requirements,
(ii) to the best of the Company’s and the Guarantors’ knowledge, none of the Company, the
Guarantors or any of their respective subsidiaries is in violation of any federal, state,
local or foreign law or regulation relating to pollution or protection of human health or
the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata) or wildlife, including, without limitation, laws and
regulations relating to emissions, discharges, releases or threatened releases of
chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances,
petroleum and petroleum products (collectively, “Materials of Environmental Concern”), or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Materials of Environmental Concern (collectively,
“Environmental Laws”), which violation includes, without limitation, noncompliance with any
permits or other governmental authorizations required for the operation of the business of
the Company, the Guarantors or any of their respective subsidiaries under applicable
Environmental Laws, or noncompliance with the terms and conditions thereof, nor have the
Company, any Guarantor or any of their respective subsidiaries received any written
communication, whether from a governmental authority, citizens group, employee or
otherwise, that alleges that

13

 

either the Company, any Guarantor or any of their respective subsidiaries is in
violation of any Environmental Law; (iii) there is no claim, action or cause of action
filed with a court or governmental authority, no investigation with respect to which the
Company has received written notice, and no written notice by any person or entity alleging
potential liability for investigatory costs, cleanup costs, governmental responses costs,
natural resources damages, property damages, personal injuries, attorneys’ fees or
penalties arising out of, based on or resulting from the presence, or release into the
environment, of any Material of Environmental Concern at any location owned, leased or
operated by the Company, any Guarantor or any of their respective subsidiaries, now or in
the past (collectively, “Environmental Claims”), pending or, to the best of the Company’s
and the Guarantors’ knowledge, threatened against the Company, any Guarantor or any of
their respective subsidiaries or any person or entity whose liability for any Environmental
Claim the Company, any Guarantor or any of their respective subsidiaries has retained or
assumed either contractually or by operation of law; and (iv) to the best of the Company’s
and the Guarantors’ knowledge, there are no past or present actions, activities,
circumstances, conditions, events or incidents, including, without limitation, the release,
emission, discharge, presence or disposal of any Material of Environmental Concern, that
could result in a violation of any Environmental Law or form the basis of a potential
Environmental Claim against the Company, any Guarantor or any of their respective
subsidiaries or against any person or entity whose liability for any Environmental Claim
the Company, any Guarantor or any of their respective subsidiaries has retained or assumed
either contractually or by operation of law. Neither the Company nor any of its
subsidiaries has been named as a “potentially responsible party” under the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended.

     (gg) Periodic Review of Costs of Environmental Compliance. In the ordinary course of
its business, the Company conducts a periodic review of the effect of Environmental Laws on
the business, operations and properties of the Company and its subsidiaries, in the course
of which it identifies and evaluates associated costs and liabilities (including, without
limitation, any capital or operating expenditures required for clean-up, closure of
properties or compliance with Environmental Laws or any permit, license or approval, any
related constraints on operating activities and any potential liabilities to third
parties). On the basis of such review and the amount of its established reserves, the
Company has reasonably concluded that such associated costs and liabilities would not,
individually or in the aggregate, result in a Material Adverse Change.

     (hh) ERISA Compliance. The Company and its subsidiaries and any “employee benefit
plan,” as defined under the Employee Retirement Income Security Act of 1974 (as amended,
“ERISA,” which term, as used herein, includes the regulations and published interpretations
thereunder), established or maintained by the Company, its subsidiaries or their “ERISA
Affiliates” (as defined below) are in compliance in all material respects with the
applicable

14

 

provisions of ERISA, or if not in material compliance such noncompliance would not
result in a Material Adverse Change. “ERISA Affiliate” means, with respect to the Company
or a subsidiary, any member of any group of organizations described in Section 414 of the
Internal Revenue Code of 1986 (as amended, the “Code,” which term, as used herein, includes
the regulations and published interpretations thereunder) of which the Company or such
subsidiary is a member. No “reportable event” (as defined under ERISA) for which notice
requirements have not been waived has occurred or is reasonably expected to occur with
respect to any “employee benefit plan” established or maintained by the Company, its
subsidiaries or any of their ERISA Affiliates and which is covered by Title IV of ERISA,
except for such reportable events which would not, individually or in the aggregate, result
in a Material Adverse Change. No “employee benefit plan” established or maintained by the
Company, its subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan”
were terminated as of the most recent annual valuation date for such plan, would have any
“amount of unfunded benefit liabilities” (as defined under ERISA) that would result in a
Material Adverse Change. Neither the Company, its subsidiaries nor any of their ERISA
Affiliates has incurred or reasonably expects to incur any liability under (i) Title IV of
ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or
(ii) Sections 412, 4971, 4975 or 4980B of the Code. Each “employee benefit plan”
established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates
that is intended to be qualified under Section 401 of the Code is so qualified and nothing
has occurred, whether by action or failure to act, which would cause the loss of such
qualification. For the purposes of this section (hh), “subsidiaries” means those companies
listed on Exhibit B hereto.

     (ii) Compliance with Labor Laws. Except as would not, individually or in the
aggregate, result in a Material Adverse Change, (i) to the best of the Company’s and the
Guarantors’ knowledge, there is (A) no unfair labor practice complaint pending or
threatened against the Company, the Guarantors or any of their respective subsidiaries
before the National Labor Relations Board or any state or local labor relations board, and
no grievance or arbitration proceeding arising out of or under collective bargaining
agreements pending or threatened, against the Company, the Guarantors or any of their
respective subsidiaries, (B) no strike, labor dispute, slowdown or stoppage pending or
threatened against the Company, the Guarantors or any of their respective subsidiaries and
(C) no union representation question existing with respect to the employees of the Company,
the Guarantors or any of their respective subsidiaries and no union organizing activities
taking place, (ii) there has been no violation of any federal, state or local law relating
to discrimination in hiring, promotion or pay of employees or of any applicable wage or
hour laws, and (iii) none of the Company or its subsidiaries is aware of any existing,
threatened or imminent labor disturbance by the employees of any of its principal
customers, suppliers or contractors.

     (jj) Related Party Transactions. No relationship, direct or indirect, exists between
or among any of the Company, the Guarantors or any of their

15

 

respective Affiliates, on the one hand, and any former or current director, officer,
manager, member, stockholder, customer or supplier of any of them, on the other hand, which
is required by the Securities Act to be disclosed in a registration statement on Form S-1
which is not so disclosed in the Offering Memorandum. There are no outstanding loans,
advances (except advances for business expenses in the ordinary course of business) or
guarantees of indebtedness by the Company, the Guarantors or any of their respective
Affiliates to or for the benefit of any of the officers or directors of the Company, the
Guarantors or any of their respective Affiliates or any of their respective family members.

     (kk) No Unlawful Contributions or Other Payments. Except as would not, individually
or in the aggregate, result in a Material Adverse Change, neither the Company, the
Guarantors or any of their respective subsidiaries nor, to the best of the Company’s and
the Guarantors’ knowledge, any director, officer, employee or agent of the Company, any
Guarantor or any of their respective subsidiaries, has, directly or indirectly (i) made any
contribution or other payment to any official of, or candidate for, any federal, state or
foreign office in violation of any law of the character necessary to be disclosed in the
Offering Memorandum in order to make the statements therein not misleading, (ii) used any
corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity; (iii) violated any provision of the Foreign Corrupt
Practices Act of 1977, as amended; or (iv) made any other unlawful payment.

     (ll) Compliance with Regulation S. The Company, the Guarantors their respective
affiliates and all persons acting on their behalf (other than the Initial Purchasers, as to
whom the Company and the Guarantors make no representation) have complied with and will
comply with the offering restrictions requirements of Regulation S in connection with the
offering of the Securities outside the United States and, in connection therewith, the
Offering Memorandum will contain the disclosure required by Rule 902. The Company is a
“reporting issuer,” as defined in Rule 902 under the Securities Act.

     (mm) Taxes; Fees. There are no stamp or other issuance or transfer taxes or duties or
other similar fees or charges required to be paid by the Company or the Guarantors in
connection with the execution and delivery of this Agreement or the issuance or sale by the
Company and the Guarantors of the Securities or the Exchange Securities.

          Any certificate signed by an officer of the Company, any Guarantor or any of their
respective subsidiaries and delivered to the Initial Purchasers or to counsel for the Initial
Purchasers on the Closing Date shall be deemed to be a representation and warranty by the
Company, such Guarantor or such subsidiary to each Initial Purchaser as to the matters set forth
therein.

     SECTION 2. Purchase, Sale and Delivery of the Securities.

16

 

     (a) The Securities. Each of the Company and the Guarantors agrees to issue and sell
to the Initial Purchasers, severally and not jointly, all of the Securities, and the
Initial Purchasers agree, severally and not jointly, to purchase from the Company and the
Guarantors the aggregate principal amount of Securities set forth opposite their names on
Schedule A, at a purchase price of 97.004% of the principal amount thereof payable
on the Closing Date, in each case, on the basis of the representations, warranties and
agreements herein contained, and upon the terms, subject to the conditions thereto, herein
set forth.

     (b) The Closing Date. Delivery of certificates for the Securities in definitive form
to be purchased by the Initial Purchasers and payment therefor shall be made at the offices
of Fried, Frank, Harris, Shriver & Jacobson LLP, One New York Plaza, New York, New York
10004 (or such other place as may be agreed to by the Company and Banc of America
Securities LLC) at 9:00 a.m. New York City time, on April 20, 2006 or such other
time and date as Banc of America Securities LLC shall designate by notice to the Company
(the time and date of such closing are called the “Closing Date”). The Company hereby
acknowledges that circumstances under which Banc of America Securities LLC may provide
notice to postpone the Closing Date as originally scheduled include, but are in no way
limited to, any determination by the Company or the Initial Purchasers to recirculate to
investors copies of an amended or supplemented Offering Memorandum or a delay as
contemplated by the provisions of Section 16 hereof.

     (c) Delivery of the Securities. The Company shall deliver, or cause to be delivered,
to Banc of America Securities LLC for the accounts of the several Initial Purchasers
certificates for the Notes and the Guarantees at the Closing Date against the irrevocable
release of a wire transfer of immediately available funds for the amount of the purchase
price therefor to an account or accounts specified by the Company. The certificates for
the Notes shall be in such denominations and registered in the name of Cede & Co., as
nominee of the Depositary, pursuant to the DTC Agreement, and shall be made available for
inspection on the business day preceding the Closing Date at a location in New York City,
as Banc of America Securities LLC may designate. Time shall be of the essence, and
delivery at the time and place specified in this Agreement is a further condition to the
obligations of the Initial Purchasers.

     (d) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser
severally and not jointly represents and warrants to, and agrees with, the Company that it
is a “qualified institutional buyer” within the meaning of Rule 144A (a “Qualified
Institutional Buyer”).

          SECTION 3. Additional Covenants. The Company and the Guarantors, jointly and severally,
further covenant and agree with each Initial Purchaser as follows:

     (a) Preparation of Final Offering Memorandum; Initial Purchasers’ Review of Proposed
Amendments and Supplements. As promptly as practicable

17

 

following the Time of Execution and in any event not later than the second business
day following the date hereof, the Company will prepare and deliver to the Initial
Purchasers the Final Offering Memorandum, which shall consist of the Preliminary Offering
Memorandum as modified only by the information contained in the Pricing Supplement. The
Company will not amend or supplement the Preliminary Offering Memorandum or the Pricing
Supplement. The Company will not amend or supplement the Final Offering Memorandum prior
to the Closing Date unless the Initial Purchasers shall previously have been furnished a
copy of the proposed amendment or supplement at least two business days prior to the
proposed use or filing, and shall not have objected to such amendment or supplement.

     (b) Amendments and Supplements to the Final Offering Memorandum and Other Securities
Act Matters. If, prior to the later of (x) the Closing Date and (y) the completion of the
placement of the Securities by the Initial Purchasers with the Subsequent Purchasers, any
event shall occur or condition exist as a result of which it is necessary to amend or
supplement the Final Offering Memorandum, as then amended or supplemented, in order to make
the statements therein, in the light of the circumstances when the Final Offering
Memorandum is delivered to a Subsequent Purchaser, not misleading, or if in the judgment of
the Initial Purchasers or counsel for the Initial Purchasers it is otherwise necessary to
amend or supplement the Final Offering Memorandum to comply with law, the Company agrees to
promptly prepare (subject to Section 3 hereof), and furnish at its own expense to the
Initial Purchasers, amendments or supplements to the Final Offering Memorandum so that the
statements in the Final Offering Memorandum as so amended or supplemented will not, in the
light of the circumstances at the Closing Date and at the time of sale of Securities, be
misleading or so that the Final Offering Memorandum, as amended or supplemented, will
comply with all applicable law.

     Following the consummation of the Exchange Offer or the effectiveness of an applicable
shelf registration statement and for so long as the Securities are outstanding if, in the
judgment of the Initial Purchasers, the Initial Purchasers or any of their affiliates (as
such term is defined in the Securities Act) are required to deliver a prospectus in
connection with sales of, or market-making activities with respect to, the Securities, to
periodically amend the applicable registration statement so that the information contained
therein complies with the requirements of Section 10 of the Securities Act, to amend the
applicable registration statement or supplement the related prospectus or the documents
incorporated therein when necessary to reflect any material changes in the information
provided therein so that the registration statement and the prospectus will not contain any
untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements therein, in the light of the circumstances existing as of the date
the prospectus is so delivered, not misleading and to provide the Initial Purchasers with
copies of each amendment or supplement filed and such other documents as the Initial
Purchasers may
reasonably request.

18

 

     The Company and the Guarantors hereby expressly acknowledge that the indemnification
and contribution provisions of Sections 8 and 9 hereof are specifically applicable and
relate to each offering memorandum, registration statement, prospectus, amendment or
supplement referred to in this Section 3.

     (c) Copies of the Offering Memorandum. The Company agrees to furnish the Initial
Purchasers, without charge, as many copies of the Pricing Disclosure Package and the Final
Offering Memorandum and any amendments and supplements thereto as they shall have
reasonably requested.

     (d) Blue Sky Compliance. Each of the Company and the Guarantors shall cooperate with
the Initial Purchasers and counsel for the Initial Purchasers to qualify or register (or to
obtain exemptions from qualifying or registering) all or any part of the Securities for
offer and sale under the securities laws of the several states of the United States, the
provinces of Canada or any other jurisdictions designated by the Initial Purchasers, shall
comply with such laws and shall continue such qualifications, registrations and exemptions
in effect so long as required for the distribution of the Securities. None of the Company
or any of the Guarantors shall be required to qualify as a foreign corporation or to take
any action that would subject it to general service of process in any such jurisdiction
where it is not presently qualified or where it would be subject to taxation as a foreign
corporation. The Company will advise the Initial Purchasers promptly of the suspension of
the qualification or registration of (or any such exemption relating to) the Securities for
offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding
for any such purpose, and in the event of the issuance of any order suspending such
qualification, registration or exemption, each of the Company and the Guarantors shall use
its reasonable best efforts to obtain the withdrawal thereof at the earliest possible
moment.

     (e) Use of Proceeds. The Company shall apply the net proceeds from the sale of the
Securities sold by it in the manner described under the caption “Use of Proceeds” in the
Pricing Disclosure Package.

     (f) The Depositary. The Company will cooperate with the Initial Purchasers and use
its best efforts to permit the Securities to be eligible for clearance and settlement
through the facilities of the Depositary.

     (g) Additional Issuer Information. Prior to the completion of the placement of the
Securities by the Initial Purchasers with the Subsequent Purchasers, the Company shall
file, on a timely basis, with the Commission and NASDAQ all reports and documents required
to be filed under Section 13 or 15 of the Exchange Act. Additionally, at any time when the
Company is not subject to Section 13 or 15 of the Exchange Act, for the benefit of holders
and beneficial owners from time to time of the Securities, the Company shall furnish, at
its

19

 

expense, upon request, to holders and beneficial owners of Securities and prospective
purchasers of Securities information (“Additional Issuer Information”) satisfying the
requirements of Rule 144A(d).

     (h) Agreement Not To Offer or Sell Additional Securities. During the period of 180
days following the date hereof, the Company and each of the Guarantors will not, without
the prior written consent of Banc of America Securities LLC (which consent may be withheld
at the sole discretion of Banc of America Securities LLC), directly or indirectly, sell,
offer, contract or grant any option to sell, pledge, transfer or establish an open “put
equivalent position” within the meaning of Rule 16a-1 under the Exchange Act, or otherwise
dispose of or transfer, or announce the offering of, or file any registration statement
under the Securities Act in respect of, any debt securities of the Company or any of the
Guarantors or securities exchangeable for or convertible into debt securities of the
Company or any of the Guarantors (other than as contemplated by this Agreement and to
register the Exchange Securities).

     (i) Future Reports to the Initial Purchasers. At any time when the Company is not
subject to Section 13 or 15 of the Exchange Act and any Securities or Exchange Securities
remain outstanding, the Company will furnish to Banc of America Securities LLC: (i) as
soon as practicable after the end of each fiscal year, copies of the Annual Report of the
Company containing the balance sheet of the Company as of the close of such fiscal year and
statements of income, stockholders’ equity and cash flows for the year then ended and the
opinion thereon of the Company’s independent public or certified public accountants; (ii)
as soon as practicable after the filing thereof, copies of each proxy statement, Annual
Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
report filed by the Company with the Commission, the NASD or any securities exchange; and
(iii) as soon as available, copies of any report or communication of the Company mailed
generally to holders of its capital stock or debt securities (including the holders of the
Securities), if, in each case, such documents are not filed with the Commission within the
time periods specified by the Commission’s rules and regulations under Section 13 or 15 of
the Exchange Act.

     (j) No Integration. The Company agrees that it will not, and will cause its
Affiliates and subsidiaries not to, make any offer or sale of securities of the Company of
any class if, as a result of the doctrine of “integration” referred to in Rule 502 under
the Securities Act, such offer or sale would render invalid (for the purpose of (i) the
sale of the Securities by the Company to the Initial Purchasers, (ii) the resale of the
Securities by the Initial Purchasers to Subsequent Purchasers or (iii) the resale of the
Securities by such Subsequent Purchasers to others) the exemption from the registration
requirements of the Securities Act regarding the Securities provided by Section 4(2)
thereof or by Rule 144A or by Regulation S thereunder or otherwise.

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     (k) No Restricted Resales. During the period of two years after the Closing Date, the
Company will not, and will not permit any of its affiliates (as defined in Rule 144 under
the Securities Act) to resell any of the Notes which constitute “restricted securities”
under Rule 144 that have been reacquired by any of them.

     (l) Legended Securities. Each certificate for a Note will bear the legend contained
in “Notice to Investors” in the Preliminary Offering Memorandum for the time period and
upon the other terms stated in the Preliminary Offering Memorandum.

     (m) PORTAL. The Company will use its reasonable best efforts to cause such Notes to
be eligible for the PORTAL Market.

          Banc of America Securities LLC, on behalf of the several Initial Purchasers, may, in its sole
discretion, waive in writing the performance by the Company or any Guarantor of any one or more of
the foregoing covenants or extend the time for their performance.

          SECTION 4. Payment of Expenses. Each of the Company and the Guarantors agrees to pay all
costs, fees and expenses incurred in connection with the performance of its obligations hereunder
and in connection with the transactions contemplated hereby, including, without limitation, (i) all
expenses incident to the issuance and delivery of the Securities (including all printing and
engraving costs), (ii) all necessary issue, transfer and other stamp taxes in connection with the
issuance and sale of the Securities to the Initial Purchasers, (iii) all fees and expenses of the
Company’s and the Guarantors’ counsel, independent public or certified public accountants and other
advisors, (iv) all costs and expenses incurred in connection with the preparation, printing,
filing, shipping and distribution of the Pricing Disclosure Package and the Final Offering
Memorandum (including financial statements and exhibits), and all amendments and supplements
thereto, this Agreement, the Registration Rights Agreement, the Indenture, the DTC Agreement and
the Notes and Guarantees, (v) all filing fees, attorneys’ fees and expenses incurred by the
Company, the Guarantors or the Initial Purchasers in connection with qualifying or registering (or
obtaining exemptions from the qualification or registration of) all or any part of the Securities
for offer and sale under the securities laws of the several states of the United States, the
provinces of Canada or other jurisdictions designated by the Initial Purchasers (including, without
limitation, the cost of preparing, printing and mailing preliminary and final blue sky or legal
investment memoranda and any related supplements to the Pricing Disclosure Package or the Final
Offering Memorandum), (vi) the fees and expenses of the Trustee, including the reasonable fees and
disbursements of counsel for the Trustee in connection with the Indenture, the Securities and the
Exchange Securities, (vii) any fees payable in connection with the rating of the Securities or the
Exchange Securities with the ratings agencies and the listing of the Securities with the PORTAL
Market, (viii) any filing fees incident to, and any reasonable fees and disbursements of counsel to
the Initial Purchasers in connection with the review by the NASD, if any, of the terms of the sale
of the Securities or the

21

 

Exchange Securities, (ix) all fees and expenses (including reasonable fees and expenses of
counsel) of the Company and the Guarantors in connection with approval of the Securities by the
Depositary for “book-entry” transfer, and the performance by the Company and the Guarantors of
their respective other obligations under this Agreement, and (x) all of the Company’s expenses
incident to the “road show” for the offering of the Securities, including one-half of the cost of
any chartered airplane or other transportation. Except as provided in this Section 4 and Sections
6, 8 and 9 hereof, the Initial Purchasers shall pay their own expenses, including the fees and
disbursements of their counsel.

          SECTION 5. Conditions of the Obligations of the Initial Purchasers. The obligations of the
several Initial Purchasers to purchase and pay for the Securities as provided herein on the Closing
Date shall be subject to the accuracy of the representations and warranties on the part of the
Company and the Guarantors set forth in Section 1 hereof as of the date hereof and as of the
Closing Date as though then made and to the timely performance by the Company and the Guarantors of
their covenants and other obligations hereunder, and to each of the following additional
conditions:

     (a) Accountants’ Comfort Letter. On the date hereof, the Initial Purchasers shall
have received from PricewaterhouseCoopers LLP, independent public or certified public
accountants for the Company, a “comfort letter” dated the date hereof addressed to the
Initial Purchasers, in form and substance satisfactory to the Initial Purchasers, covering
the financial information in the Preliminary Offering Memorandum and the Pricing Supplement
and other customary matters. In addition, on the Closing Date, the Initial Purchasers
shall have received from such accountants, a “bring-down comfort letter” dated the Closing
Date addressed to the Initial Purchasers, in form and substance satisfactory to the Initial
Purchasers, in the form of the “comfort letter” delivered on the date hereof, except that
(i) it shall cover the financial information in the Final Offering Memorandum and any
amendment or supplement thereto and (ii) procedures shall be brought down to a date no more
than three business days prior to the Closing Date.

     (b) No Material Adverse Change or Ratings Agency Change. For the period from and
after the date of this Agreement and prior to the Closing Date:

     (i) in the reasonable judgment of the Initial Purchasers there shall not have
occurred any Material Adverse Change; and

     (ii) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a possible
change that does not indicate the direction of the possible change, in the rating
accorded any securities or indebtedness of the Company, any Guarantor or any of
their respective subsidiaries by any “nationally recognized statistical rating
organization” as such term is defined for purposes of Rule 436 under the Securities
Act.

22

 

     (c) Opinion of Counsel for the Company. On the Closing Date the Initial Purchasers
shall have received the favorable opinion of Thompson & Knight LLP, counsel for the
Company, dated as of such Closing Date, the form of which is attached as Exhibit A.

     (d) Opinion of Counsel for the Initial Purchasers. On the Closing Date the Initial
Purchasers shall have received the favorable opinion of Fried, Frank, Harris, Shriver &
Jacobson LLP, counsel for the Initial Purchasers, dated as of such Closing Date, with
respect to such matters as may be reasonably requested by the Initial Purchasers.

     (e) Officers’ Certificate. On the Closing Date the Initial Purchasers shall have
received a written certificate executed by the Chairman of the Board, Chief Executive
Officer or President of the Company and each Guarantor and the Chief Financial Officer or
Chief Accounting Officer of the Company and each Guarantor, dated as of the Closing Date,
to the effect set forth in Section 5(b)(ii) hereof, and further to the effect that:

     (i) for the period from and after the date of this Agreement and prior to the
Closing Date there has not occurred, to the best of their knowledge, any Material
Adverse Change;

     (ii) the representations, warranties and covenants of the Company and the
Guarantors set forth in Section 1 hereof were true and correct as of the Time of
Execution and are true and correct as of the Closing Date with the same force and
effect as though expressly made on and as of the Closing Date; and

     (iii) the Company and the Guarantors have complied with all the agreements and
satisfied all the conditions on their part to be performed or satisfied at or prior
to the Closing Date.

     (f) Engineers Letter. On the date hereof, the Initial Purchasers shall have received
from Cawley, Gillespie, a letter dated the date hereof addressed to the Initial Purchasers,
in form and substance satisfactory to the Initial Purchasers, containing the conclusions
and findings of such firm with respect to the oil and gas properties of the Company and its
subsidiaries. In addition, on the Closing Date, the Initial Purchasers shall have received
from Cawley, Gillespie, a letter dated the Closing Date addressed to the Initial Purchasers
(which may refer to the letter previously delivered to the Initial Purchasers), in form and
substance satisfactory to the Initial Purchasers, containing the conclusions and findings
of such firm with respect to the oil and gas properties of the Company and its
subsidiaries.

     (g) PORTAL Listing. At the Closing Date the Notes shall have been designated for
trading on the PORTAL Market.

23

 

     (h) Registration Rights Agreement and Indenture.The Company and the Guarantors
shall have entered into the Registration Rights Agreement and the Indenture, the Trustee
shall have entered into the Indenture and the Initial Purchasers shall have received
executed counterparts thereof.

     (i) Additional Documents. On or before the Closing Date, the Initial Purchasers and
counsel for the Initial Purchasers shall have received such information, documents and
opinions as they may reasonably require for the purposes of enabling them to pass upon the
issuance and sale of the Securities as contemplated herein, or in order to evidence the
accuracy of any of the representations and warranties, or the satisfaction of any of the
conditions or agreements, herein contained.

          If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Initial Purchasers by notice to the Company at
any time on or prior to the Closing Date, which termination shall be without liability on the part
of any party to any other party, except that Sections 4, 6, 8 and 9 hereof shall at all times be
effective and shall survive such termination.

          SECTION 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by
the Initial Purchasers pursuant to Section 5 or 10 hereof, including if the sale to the Initial
Purchasers of the Securities on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company to perform any agreement herein or to comply with
any provision hereof (other than as a result of a breach by this Agreement by the Initial
Purchasers), the Company agrees to reimburse the Initial Purchasers (or such Initial Purchasers as
have terminated this Agreement with respect to themselves), severally, upon demand for all
out-of-pocket costs and expenses that shall have been reasonably incurred by the Initial Purchasers
in connection with the proposed purchase and the offering and sale of the Securities, including,
without limitation, fees and disbursements of counsel, printing expenses, travel expenses, expenses
associated with the road show for the marketing of the Securities, postage, facsimile and telephone
charges.

          SECTION 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one
hand, and the Company and the Guarantors, on the other hand, hereby agree to observe the following
procedures in connection with the offer and sale of the Securities:

          (A) Offers and sales of the Securities will be made only by the Initial Purchasers or
Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are made.
Each such offer or sale shall only be made to persons whom the offeror or seller reasonably
believes to be Qualified Institutional Buyers or non-U.S. persons outside the United States to whom
the offeror or seller reasonably believes offers and sales of the Securities may be made in
reliance upon Regulation S, upon the terms and conditions set forth in Annex I hereto, which Annex
I is hereby expressly made a part hereof.

24

 

          (B) The Securities will be offered by approaching prospective Subsequent Purchasers on an
individual basis. No general solicitation or general advertising (within the meaning of Rule 502
under the Securities Act) will be used in the United States in connection with the offering of the
Securities.

          (C) Upon original issuance by the Company, and until such time as the same is no longer
required under the applicable requirements of the Securities Act, the Notes (and all securities
issued in exchange therefor or in substitution thereof, other than the Exchange Notes) shall bear
the following legend:

“THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS. NEITHER THIS NOTE, THE GUARANTEES ENDORSED HEREON, NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO THE REGISTRATION
REQUIREMENTS OF, THE SECURITIES ACT. THE HOLDER OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON, BY ITS ACCEPTANCE HEREOF, AGREES NOT TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF
THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE AND THE GUARANTEES ENDORSED
HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON) (THE
“RESALE RESTRICTION TERMINATION DATE”), EXCEPT THAT THE NOTES AND GUARANTEES MAY
BE TRANSFERRED (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
NOTES AND THE GUARANTEES ENDORSED THEREON ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT,
OR (E) PURSUANT TO ANOTHER

25

 

AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER (1) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF
THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE
RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (2) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE
TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.”

     Following the sale of the Securities by the Initial Purchasers to Subsequent Purchasers
pursuant to the terms hereof, the Initial Purchasers shall not be liable or responsible to the
Company or any Guarantor for any losses, damages or liabilities suffered or incurred by the Company
or any Guarantor, including any losses, damages or liabilities under the Securities Act, arising
from or relating to any resale or transfer of any Security by a Subsequent Purchaser or a
subsequent transferee.

          SECTION 8. Indemnification.

     (a) Indemnification of the Initial Purchasers. Each of the Company and the
Guarantors, jointly and severally, agrees to indemnify and hold harmless each Initial
Purchaser, its directors, officers and employees, and each person, if any, who controls any
Initial Purchaser within the meaning of the Securities Act and the Exchange Act against any
loss, claim, damage, liability or expense, as incurred, to which such Initial Purchaser,
director, officer, employee or controlling person may become subject, under the Securities
Act, the Exchange Act or other federal or state statutory law or regulation, or at common
law or otherwise (including in settlement of any litigation, if such settlement is effected
with the written consent of the Company and/or any Guarantor sought to be bound), insofar
as such loss, claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based: (i) upon any untrue statement or alleged
untrue statement of a material fact contained in the Pricing Disclosure Package or the
Final Offering Memorandum (or any amendment or supplement thereto), or the omission or
alleged omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading; or
(ii) any act or failure to act or any alleged act or failure to act by any Initial
Purchaser in connection with, or relating in any manner to, the offering contemplated
hereby,

26

 

and which is included as part of or referred to in any loss, claim, damage, liability
or action arising out of or based upon any matter covered by clause (i) above, provided
that the Company and the Guarantors shall not be liable under this clause (ii) to the
extent that a court of competent jurisdiction shall have determined by a final judgment
that such loss, claim, damage, liability or action resulted directly from any such acts or
failures to act undertaken or omitted to be taken by such Initial Purchaser through its
gross negligence or willful misconduct; and to reimburse each Initial Purchaser and each
such director, officer, employee or controlling person for any and all expenses (including
the reasonable fees and disbursements of counsel chosen by Banc of America Securities LLC)
as such expenses are reasonably incurred by such Initial Purchaser or such director,
officer, employee or controlling person in connection with investigating, defending,
settling, compromising or paying any such loss, claim, damage, liability, expense or
action; provided, however, that the foregoing indemnity agreement shall not apply to any
loss, claim, damage, liability or expense to the extent, but only to the extent, arising
out of or based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in reliance upon and in conformity with written information furnished
to the Company by the Initial Purchasers expressly for use in the Pricing Disclosure
Package or the Final Offering Memorandum (or any amendment or supplement thereto). The
indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities
that the Company and the Guarantors may otherwise have.

     (b) Indemnification of the Company and the Guarantors. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Company, each Guarantor, each
of their respective directors, officers and employees and each person, if any, who controls
the Company or any Guarantor within the meaning of the Securities Act or the Exchange Act,
against any loss, claim, damage, liability or expense, as incurred, to which the Company,
any Guarantor or any such director, officer or employee or controlling person may become
subject, under the Securities Act, the Exchange Act, or other federal or state statutory
law or regulation, or at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of such Initial
Purchaser), insofar as such loss, claim, damage, liability or expense (or actions in
respect thereof as contemplated below) arises out of or is based upon any untrue statement
or alleged untrue statement of a material fact contained in the Pricing Disclosure Package
or the Final Offering Memorandum (or any amendment or supplement thereto), or the omission
or alleged omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, in
each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in the Pricing Disclosure Package
or the Final Offering Memorandum (or any amendment or supplement thereto), in reliance upon
and in conformity with written information furnished to the Company by the Initial
Purchasers expressly for use therein; and

27

 

to reimburse the Company, any Guarantor and each such director, officer, employee or controlling
person for any and all expenses (including the reasonable fees and disbursements of
counsel) as such expenses are reasonably incurred by the Company, any Guarantor or such
director, officer or employee or controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage, liability,
expense or action. Each of the Company and the Guarantors hereby acknowledges that the only
information that the Initial Purchasers have furnished to the Company expressly for use in
the Pricing Disclosure Package or the Final Offering Memorandum (or any amendment or
supplement thereto) are the statements in the fourth sentence of the sixth paragraph, the
eighth paragraph and the tenth paragraph under the caption “Plan of Distribution” in the
Preliminary Offering Memorandum and the Final Offering Memorandum. The indemnity agreement
set forth in this Section 8 (b) shall be in addition to any liabilities that each Initial
Purchaser may otherwise have.

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party under this Section 8, notify the indemnifying party in writing of the commencement
thereof, but the omission so to notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party for contribution or otherwise under
the indemnity agreement contained in this Section 8 other than to the extent it is
prejudiced as a proximate result of such failure. In case any such action is brought
against any indemnified party and such indemnified party seeks or intends to seek indemnity
from an indemnifying party, the indemnifying party will be entitled to participate in and,
to the extent that it shall elect, jointly with all other indemnifying parties similarly
notified, by written notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense thereof with counsel
reasonably satisfactory to such indemnified party; provided, however, if the defendants in
any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that a conflict may arise between the
positions of the indemnifying party and the indemnified party in conducting the defense of
any such action or that there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select
separate counsel to assume such legal defenses and to otherwise participate in the defense
of such action on behalf of such indemnified party or parties. Upon receipt of notice from
the indemnifying party to such

28

 

indemnified party of such indemnifying party’s election so
to assume the defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this Section 8 for
any legal or other expenses subsequently incurred by such indemnified party in connection
with the defense thereof unless (i) the indemnified party shall have employed separate
counsel in accordance with the proviso to the immediately preceding sentence (it being understood, however, that
the indemnifying party shall not be liable for the expenses of more than one separate
counsel (together with local counsel), approved by the indemnifying party (Banc of America
Securities LLC in the case of Sections 8(b) and 9 hereof), representing the indemnified
parties who are parties to such action) or (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of commencement of the action, in each of which cases
the fees and expenses of counsel shall be at the expense of the indemnifying party.

     (d) Settlements. The indemnifying party under this Section 8 shall not be liable for
any settlement of any proceeding effected without its written consent, but if settled with
such consent or if there be a final judgment for the plaintiff, the indemnifying party
agrees to indemnify the indemnified party against any loss, claim, damage, liability or
expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence,
if at any time an indemnified party shall have requested an indemnifying party to reimburse
the indemnified party for fees and expenses of counsel as contemplated by this Section 8,
the indemnifying party agrees that it shall be liable for any settlement of any proceeding
effected without its written consent if (i) such settlement is entered into more than 60
days after receipt by such indemnifying party of the aforesaid request and (ii) such
indemnifying party shall not have reimbursed the indemnified party in accordance with such
request prior to the date of such settlement. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement, compromise or
consent to the entry of judgment in any pending or threatened action, suit or proceeding in
respect of which any indemnified party is or could have been a party and indemnity was or
could have been sought hereunder by such indemnified party, unless such settlement,
compromise or consent (i) includes an unconditional release of such indemnified party from
all liability on claims that are the subject matter of such action, suit or proceeding and
(ii) does not include any statements as to or any findings of fault, culpability or failure
to act by or on behalf of any indemnified party.

          SECTION 9. Contribution. If the indemnification provided for in Section 8 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, from
the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative

29

 

fault of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand,
in connection with the statements or omissions which resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable considerations. The
relative benefits received by the Company and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, in connection with the offering of the Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total net proceeds from
the offering of the Securities pursuant to this Agreement (before deducting expenses) received by
the Company and the total discount received by the Initial Purchasers bear to the aggregate initial
offering price of the Securities. The relative fault of the Company and the Guarantors, on the one
hand, and the Initial Purchasers, on the other hand, shall be determined by reference to, among
other things, whether any such untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the Company and the
Guarantors, on the one hand, or the Initial Purchasers, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.

          The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 8 hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim. The provisions set forth in
Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 9; provided, however, that no additional notice shall
be required with respect to any action for which notice has been given under Section 8 hereof for
purposes of indemnification.

          The Company, the Guarantors and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 9 were determined by pro rata allocation (even
if the Initial Purchasers were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in this Section
9.

          Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to
contribute any amount in excess of the discount received by such Initial Purchaser in connection
with the Securities distributed by it. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11 of the Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to
contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective
commitments as set forth opposite their names in Schedule A. For purposes of this Section
9, each director, officer and employee of an Initial Purchaser and each person, if any, who
controls an Initial Purchaser within the meaning of the Securities Act and the Exchange Act shall
have the same rights to contribution as such Initial Purchaser, and each director, officer or
employee of the Company or any Guarantor, and each person, if any, who controls the Company or any
Guarantor within the meaning of the Securities Act and the Exchange Act shall have the same rights
to contribution as the Company and the Guarantors.

30

 

          SECTION 10. Termination of this Agreement. Prior to the Closing Date, this Agreement may be
terminated by the Initial Purchasers by notice given to the Company if at any time after the date
of this Agreement: (i) trading or quotation in any of the Company’s securities shall have been
suspended or limited by the Commission or by NASDAQ, or trading in securities generally on either
NASDAQ or the NYSE shall have been suspended or limited, or minimum or maximum prices shall have
been generally established on any of such quotation system or stock exchange by the Commission or
the NASD; (ii) a general banking moratorium shall have been declared by any of federal, New York or
Delaware authorities; (iii) there shall have occurred any outbreak or escalation of national or
international hostilities or any crisis or calamity, or any change in the United States or
international financial markets, or any substantial change or development involving a prospective
substantial change in United States’ or international political, financial or economic conditions,
as in the judgment of the Initial Purchasers is material and adverse and makes it impracticable to
proceed with the offering sale or delivery of the Securities in the manner and on the terms
described in the Pricing Disclosure Package or to enforce contracts for the sale of securities;
(iv) in the judgment of the Initial Purchasers there shall have occurred any Material Adverse
Change; or (v) the Company and its subsidiaries shall have sustained a loss by strike, fire, flood,
earthquake, accident or other calamity of such character as in the judgment of the Initial
Purchasers may interfere materially with the conduct of the business and operations of the Company
and its subsidiaries regardless of whether or not such loss shall have been insured. Any
termination pursuant to this Section 10 shall be without liability on the part of (i) the Company
or any Guarantor to any Initial Purchaser, except that the Company and the Guarantors shall be
obligated to reimburse the expenses of the Initial Purchasers pursuant to Sections 4 and 6 hereof,
(ii) any Initial Purchaser to the Company, or (iii) any party hereto to any other party, except
that the provisions of Sections 8 and 9 hereof shall at all times be effective and shall survive
such termination.

          SECTION 11. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of the Company and the Guarantors and
of each of their respective officers and of the several Initial Purchasers set forth in or made
pursuant to this Agreement will remain in full force and effect, regardless of any investigation
made by or on behalf of any Initial Purchaser or the Company or any of the Guarantors or any of its
or their partners, officers, directors, employees or any controlling person, as the case may be,
and will survive delivery of and payment for the Securities sold hereunder and any termination of
this Agreement.

          SECTION 12. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered, couriered or facsimiled and confirmed to the parties hereto as follows:

31

 

If to the Initial Purchasers:

Banc of America Securities LLC

9 West 57th Street

New York, NY 10019

Facsimile: (212) 415-9634

Attention: Lex Maultsby

with a copy to:

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, NY 10004

Facsimile: (212) 859-4000

Attention: Valerie Ford Jacob, Esq.

If to the Company or the Guarantors:

6300 Bridge Point Parkway

Building 2, Suite 500

Austin, TX 78730

Phone: (512) 427-3300

Facsimile: (512) 427-3400

Attention: Warren Ludlow

General Counsel

with a copy to:

Thompson & Knight LLP

1700 Pacific Avenue, Suite 3300

Dallas, Texas 75201

Facsimile: (214) 969-1751

Attention: Joe Dannenmaier

     Any party hereto may change the address or facsimile number for receipt of communications by
giving written notice to the others.

          SECTION 13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, including any substitute Initial Purchasers pursuant to Section 16 hereof, and to
the benefit of the indemnified parties referred to in Sections 8 and 9 hereof, and in each case
their respective successors, and no other person will have any right or obligation hereunder. The
term “successors” shall not include any Subsequent Purchaser of other purchaser of the Securities
as such from any of the Initial Purchasers merely by reason of such purchase.

          SECTION 14. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other section, paragraph or provision hereof. If any section, paragraph or provision of this
Agreement is for any reason determined to be

32

 

invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor
changes) as are necessary to make it valid and enforceable.

          SECTION 15. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

     (a) Consent to Jurisdiction. Any legal suit, action or proceeding arising out of or
based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”)
may be instituted in the federal courts of the United States of America located in the City
and County of New York or the courts of the State of New York in each case located in the
City and County of New York (collectively, the “Specified Courts”), and each party
irrevocably submits to the exclusive jurisdiction (except for suits, actions, or
proceedings instituted in regard to the enforcement of a judgment of any Specified Court in
a Related Proceeding, as to which such jurisdiction is non-exclusive) of the Specified
Courts in any Related Proceeding. Service of any process, summons, notice or document by
mail to such party’s address set forth above shall be effective service of process for any
Related Proceeding brought in any Specified Court. The parties irrevocably and
unconditionally waive any objection to the laying of venue of any Specified Proceeding in
the Specified Courts and irrevocably and unconditionally waive and agree not to plead or
claim in any Specified Court that any Related Proceeding brought in any Specified Court has
been brought in an inconvenient forum.

          SECTION 16. Default of One or More of the Several Initial Purchasers. If any one or more of
the several Initial Purchasers shall fail or refuse to purchase Securities that it or they have
agreed to purchase hereunder on the Closing Date, and the aggregate number of Securities which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does
not exceed 10% of the aggregate number of the Securities to be purchased on such date, the other
Initial Purchasers shall be obligated, severally, in the proportions that the number of Securities
set forth opposite their respective names on Schedule A bears to the aggregate number of
Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or in such
other proportions as may be specified by the Initial Purchasers with the consent of the
non-defaulting Initial Purchasers, to purchase the Securities which such defaulting Initial
Purchaser or Initial Purchasers agreed but failed or refused to purchase on the Closing Date. If
any one or more of the Initial Purchasers shall fail or refuse to purchase Securities and the
aggregate number of Securities with respect to which such default occurs exceeds 10% of the
aggregate number of Securities to be purchased on the Closing Date, and arrangements satisfactory
to the Initial Purchasers and the Company for the purchase of such Securities are not made within
48 hours after such default, this Agreement shall terminate without liability of any party to any
other party except that the provisions of Sections 4, 6, 8 and 9 hereof shall at all times be
effective and shall survive such

33

 

termination. In any such case either the Initial Purchasers or the Company shall have the
right to postpone the Closing Date, as the case may be, but in no event for longer than seven days
in order that the required changes, if any, to the Final Offering Memorandum or any other documents
or arrangements may be effected.

          As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person
substituted for a defaulting Initial Purchaser under this Section 16. Any action taken or not
taken under this Section 16 shall not relieve any defaulting Initial Purchaser from liability in
respect of any default of such Initial Purchaser under this Agreement.

          SECTION 17. No Advisory or Fiduciary Responsibility. Each of the Company and the Guarantors
acknowledges and agrees that: (i) the purchase and sale of the Securities pursuant to this
Agreement, including the determination of the offering price of the Securities and any related
discounts and commissions, is an arm’s-length commercial transaction between the Company and the
Guarantors, on the one hand, and the several Initial Purchasers, on the other hand, and the Company
and the Guarantors are capable of evaluating and understanding and understand and, assuming the
accuracy of the representations and warranties of the Initial Purchasers and the fulfillment by
them of their obligations, accept the terms, risks and conditions of the transactions contemplated
by this Agreement; (ii) in connection with each transaction contemplated hereby and the process
leading to such transaction each Initial Purchaser is and has been acting solely as a principal and
is not the agent or fiduciary of the Company, Guarantors or their respective affiliates,
stockholders, creditors or employees or any other party; (iii) no Initial Purchaser has assumed or
will assume an advisory or fiduciary responsibility in favor of the Company and the Guarantors with
respect to any of the transactions contemplated hereby or the process leading thereto (irrespective
of whether such Initial Purchaser has advised or is currently advising the Company or the
Guarantors on other matters) or any other obligation to the Company and the Guarantors except the
obligations expressly set forth in this Agreement; (iv) the several Initial Purchasers and their
respective affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of the Company and the Guarantors and that the several Initial Purchasers have no
obligation to disclose any of such interests by virtue of any fiduciary or advisory relationship;
and (v) the Initial Purchasers have not provided any legal, accounting, regulatory or tax advice
with respect to the offering contemplated hereby and the Company and the Guarantors have consulted
their own legal, accounting, regulatory and tax advisors to the extent they deemed appropriate.

          This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company, the Guarantors and the Initial Purchasers, or any of them, with respect to the
subject matter hereof. The Company and the Guarantors hereby waive and release, to the fullest
extent permitted by law, any claims that the Company and the Guarantors may have against the
Initial Purchasers with respect to any breach or alleged breach of fiduciary duty.

34

 

          SECTION 18. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. This
Agreement may not be amended or modified unless in writing by all of the parties hereto, and no
condition herein (express or implied) may be waived unless waived in writing by each party whom the
condition is meant to benefit. The section headings herein are for the convenience of the parties
only and shall not affect the construction or interpretation of this Agreement.

35

 

          If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	BRIGHAM EXPLORATION COMPANY,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Eugene B. Shepherd, Jr.
	 	 
	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BRIGHAM, INC., a Nevada corporation	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Eugene B. Shepherd, Jr.
	 	 
	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BRIGHAM OIL & GAS, L.P., a Delaware

limited partnership	 	 
	 
	 	 	 	 	 	 
	 	 	By: BRIGHAM, INC.,	 	 
	 

	 	 	 	     Its managing general partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Eugene B. Shepherd, Jr.
	 	 
	 	 	Title: Chief Financial Officer	 	 

 

 

          The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as
of the date first above written.

BANC OF AMERICA SECURITIES LLC

CREDIT SUISSE SECURITIES (USA) LLC

GREENWICH CAPITAL MARKETS, INC.

BNP PARIBAS SECURITIES CORP.

HIBERNIA SOUTH COAST CAPITAL, INC.

NATEXIS BLEICHROEDER, INC.

By: Banc of America Securities LLC

	 	 	 	 	 
	 

	 	 	 	 
	By:

	 	/s/ Lex Maultsby	 	 
	 

	 	 	 	 
	 

	 	Name:      Lex Maultsby	 	 
	 

	 	Title:      Managing Director	 	 

 

 

SCHEDULE A

	 	 	 	 	 
	 	Aggregate Principal Amount of
	Initial Purchasers	Securities to be Purchased
	Banc of America Securities LLC
	 	$	85,000,000	 
	Credit Suisse Securities (USA) LLC.
	 	 	15,000,000	 
	Greenwich Capital Markets, Inc.
	 	 	15,000,000	 
	BNP Paribas Securities Corp.
	 	 	5,000,000	 
	Hibernia South Coast Capital, Inc.
	 	 	2,500,000	 
	Natexis Bleichroeder, Inc.
	 	 	2,500,000	 
	 
	 	 	 
	Total
	 	$	125,000,000	 
	 
	 	 	 

A-1

 

EXHIBIT A

Form of Opinion of Thompson & Knight LLP, Counsel for the Company, to be Delivered Pursuant to

Section 5(c) of the Purchase Agreement

     1. The Company is a corporation that is validly existing and in good standing under the laws
of Delaware. Brigham, Inc. is a corporation that is validly existing and in good standing under the
laws of Nevada. Brigham Oil & Gas is a limited partnership that is validly existing and in good
standing under the laws of Delaware.

     2. Each Relevant Party (a) has the corporate or limited partnership power, as the case may be,
to execute, deliver and perform each Transaction Document to which it is a party and in the case of
the Company to conduct its business as described in the Pricing Disclosure Package and the Final
Offering Memorandum, (b) has taken all corporate or limited partnership action, as the case may be,
necessary to authorize the execution, delivery and performance of such Transaction Documents, and
(c) has duly executed and delivered the Purchase Agreement, the Registration Rights Agreement, the
DTC Agreement, the Indenture, the Notes and the Guarantees.

     3. Based solely on certificates of public officials, each Relevant Party was in good standing
and authorized to do business in each state specified with respect to such Relevant Party in
Schedule I.C hereto as of the date specified in such Schedule.

     4. Each of the Registration Rights Agreement, the DTC Agreement and the Indenture to which a
Relevant Party is a party is such Relevant Party’s valid and binding obligation, enforceable
against it in accordance with the terms thereof. When executed and authenticated as provided in
the Indenture, the Notes, the Exchange Notes, the Guarantees and the Guarantees of the Exchange
Notes to which a Relevant Party is a party will be such Relevant Party’s valid and binding
obligation, enforceable against it in accordance with the terms thereof

     5. The execution and delivery by each Relevant Party of the Transaction Documents to which it
is a party do not, and the performance by each such Relevant Party of its obligations thereunder
will not, (a) violate the certificate of incorporation or the certificate of formation or bylaws or
regulations of such Relevant Party, (b) breach or result in a default under, or require that any
consent, approval, license, or authorization be obtained under, any agreement or instrument listed
in Schedule I.D hereto (the “Applicable Contracts”) or (c) result in a violation by any such
Relevant Party of any Applicable Laws.

     6. No Relevant Party is, or as a result of the transactions contemplated by the Transaction
Documents will be, required to register as an investment company under the Investment Company Act
of 1940, as amended.

A-1

 

     7. No authorization, approval or other action by, and no notice to or filing with, any United
States federal or New York governmental authority or regulatory body,
or any third party that is a party to any Applicable Contract, is required for the due
execution, delivery or performance by any Relevant Party of any Transaction Document to which it is
a party, except as may be required under the Securities Act and the Trust Indenture Act of 1939, as
amended, in connection with the registration statement described in the Final Offering Memorandum
and contemplated by the Registration Rights Agreement and as may be required under the securities
or blue sky laws of any jurisdiction in the United States in connection with the offer and sale of
the Securities.

     8. Based upon the representations, warranties and agreements of the Company and the Initial
Purchasers in the Purchase Agreement and assuming compliance with the offering and transfer
procedures and restrictions described in the Final Offering Memorandum, it is not necessary in
connection with the offer and sale of the Securities to you under the Purchase Agreement or in
connection with the initial resale of such Securities by you in the manner contemplated by the
Purchase Agreement to register the Securities under the Securities Act of 1933, as amended, or to
qualify the Indenture under the Trust Indenture Act of 1939, as amended, other than any
registration or qualification that may be required in connection with the Exchange Offer
contemplated by the Final Offering Memorandum and the Registration Rights Agreement, it being
understood that no opinion is expressed as to any subsequent resale of any Securities.

     9. The statements in the Pricing Disclosure Package and the Final Offering Memorandum under
the captions “Description of Other Indebtedness”, “Description of Notes” and “Plan of
Distribution”, in each case, insofar as such statements constitute summaries of legal matters or
documents referred to therein, fairly summarize in all material respects the legal matters or
documents referred to therein. The statements in the Pricing Disclosure Package and the Final
Offering Memorandum under the caption “Material United States Federal Tax Considerations,” insofar
as such statements constitute summaries of legal matters referred to therein, fairly summarize in
all material respects the legal matters referred to therein.

     10. In the course of our acting as counsel to the Company in connection with the preparation
of the Pricing Disclosure Package and the Final Offering Memorandum, we participated in conferences
with officers and other representatives of the Relevant Parties, representatives of the Initial
Purchasers and the Initial Purchasers’ counsel, and representatives of the independent public
accountants for the Relevant Parties, at which the contents of the Pricing Disclosure Package and
the Final Offering Memorandum and related matters were discussed and, although we are not passing
upon, and do not assume any responsibility for, the accuracy, completeness or fairness of the
statements contained in the Pricing Disclosure Package and the Final Offering Memorandum and have
not made any independent checks or verification thereof, during the course of such participation,
nothing has come to our attention that leads us to believe that the Pricing

A-2

 

Disclosure Package, as Time of Execution, or that the Final Offering Memorandum, as of the date thereof and as of
the date hereof, contained or contains any untrue statement of any material fact or omitted or
omits to state any material fact required to be stated therein or necessary to make the statements
therein not misleading; except that we express no opinion and provide no negative assurance as to
the financial statements and related notes
and schedules and other financial, oil and gas reserves or prospects or production data and
statistical data derived from such financial statements, notes and schedules and other financial,
oil and gas reserves or prospects or production data.

A-3

 

EXHIBIT B

Subsidiaries of Brigham Exploration Company

BRIGHAM, INC.

BRIGHAM OIL & GAS, L.P.

BRIGHAM HOLDINGS I, LLC

BRIGHAM HOLDINGS II, LLC

B-1

 

ANNEX I

     Resale Pursuant to Regulation S or Rule 144A. Each Initial Purchaser understands that:

     Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the
Securities in the United States or to, or for the benefit or account of, a U.S. Person (other than
a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its
distribution at any time and (ii) otherwise until 40 days after the later of the commencement of
the offering of the Securities pursuant hereto and the Closing Date, other than in accordance with
Regulation S or another exemption from the registration requirements of the Securities Act. Such
Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any
advertisement with respect to the Securities (including any “tombstone” advertisement) to be
published in any newspaper or periodical or posted in any public place and will not issue any
circular relating to the Securities, except such advertisements as are permitted by and include the
statements required by Regulation S.

     Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Securities by it
to any distributor, dealer or person receiving a selling concession, fee or other remuneration
during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such
distributor, dealer or person receiving a selling concession, fee or other remuneration a
confirmation or notice to substantially the following effect:

“The Securities covered hereby have not been registered under the U.S. Securities Act
of 1933, as amended (the “Securities Act”), and may not be offered and sold within the
United States or to, or for the account or benefit of, U.S. persons (i) as part of your
distribution at any time or (ii) otherwise until 40 days after the later of the date
the Securities were first offered to persons other than distributors in reliance upon
Regulation S and the Closing Date, except in either case in accordance with Regulation
S under the Securities Act (or in accordance with Rule 144A under the Securities Act in
transactions that are exempt from the registration requirements of the Securities Act),
and in connection with any subsequent sale by you of the Securities covered hereby in
reliance on Regulation S under the Securities Act during the period referred to above
to any distributor, dealer or person receiving a selling concession, fee or other
remuneration, you must deliver a notice to substantially the foregoing effect. Terms
used above have the meanings assigned to them in Regulation S under the Securities
Act.”

I-1exv10w2

 

EXHIBIT 10.2

REGISTRATION RIGHTS AGREEMENT

by and among

Brigham Exploration Company

Brigham, Inc.

Brigham Oil & Gas, L.P.

and

Banc of America Securities LLC

Credit Suisse Securities (USA) LLC

Greenwich Capital Markets, Inc.

BNP Paribas Securities Corp.

Hibernia South Coast Capital, Inc.

Natexis Bleichroeder, Inc.

Dated as of April 20, 2006

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of April 20,
2006, by and among Brigham Exploration Company, a Delaware corporation (the “Company”), Brigham,
Inc., a Nevada corporation and Brigham Oil & Gas, L.P., a Delaware limited partnership
(collectively, with Brigham, Inc., the “Guarantors”), and Banc of America Securities LLC, Credit
Suisse Securities (USA) LLC, Greenwich Capital Markets, Inc., BNP Paribas Securities Corp.,
Hibernia South Coast Capital, Inc. and Natexis Bleichroeder, Inc. (collectively, the “Initial
Purchasers”), each of whom has agreed to purchase the Company’s 95⁄8% Senior Notes due 2014 (the
“Initial Notes”) fully and unconditionally guaranteed by the Guarantors (the “Guarantees”) pursuant
to the Purchase Agreement (as defined below). The Initial Notes and the Guarantees attached
thereto are herein collectively referred to as the “Initial Securities.”

     This Agreement is made pursuant to the Purchase Agreement, dated April 12, 2006 (the “Purchase
Agreement”), among the Company, the Guarantors and the Initial Purchasers (i) for the benefit of
the Initial Purchasers and (ii) for the benefit of the holders from time to time of the Initial
Securities, including the Initial Purchasers. In order to induce the Initial Purchasers to
purchase the Initial Securities, the Company has agreed to provide the registration rights set
forth in this Agreement. The execution and delivery of this Agreement is a condition to the
obligations of the Initial Purchasers set forth in Section 5(h) of the Purchase Agreement.

     The parties hereby agree as follows:

     Section 1. Definitions. In addition to other terms defined herein, as used in this
Agreement, the following capitalized terms shall have the following meanings:

     Additional Interest Payment Date: With respect to the Initial Securities, each Interest
Payment Date.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Business Day: Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which
banking institutions or trust companies located in New York, New York are authorized or obligated
to be closed.

     Closing Date: The date of this Agreement.

     Commission: The Securities and Exchange Commission.

     Company: As defined in the preamble hereto.

     Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the
Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the
Exchange Offer, (ii) the maintenance of such Registration Statement continuously effective and the
keeping of the Exchange Offer open for a period not less than the

 

 

minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company
to the Registrar under the Indenture of Exchange Securities in the same aggregate principal amount
as the aggregate principal amount of Initial Securities that were tendered by Holders thereof
pursuant to the Exchange Offer.

     Effectiveness Target Date: As defined in Section 5 hereof.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Exchange Offer: The registration by the Company under the Securities Act of the Exchange
Securities pursuant to a Registration Statement pursuant to which the Company offers the Holders of
all outstanding Transfer Restricted Securities the opportunity to exchange all such outstanding
Transfer Restricted Securities held by such Holders for Exchange Securities in an aggregate
principal amount equal to the aggregate principal amount of the Transfer Restricted Securities
tendered in such exchange offer by such Holders.

     Exchange Offer Registration Statement: The Registration Statement relating to the Exchange
Offer, including the related Prospectus.

     Exempt Resales: The transactions in which the Initial Purchasers propose to sell the Initial
Securities to certain “qualified institutional buyers,” as such term is defined in Rule 144A under
the Securities Act and to certain non-U.S. persons pursuant to Regulation S under the Securities
Act.

     Exchange Securities: The
95⁄8% Senior Notes due 2014, of the same series under the Indenture
as the Initial Securities, to be issued to Holders in exchange for Transfer Restricted Securities
pursuant to this Agreement.

     Guarantees: As defined in the preamble hereto.

     Guarantors: As defined in the preamble hereto.

     Holders: As defined in Section 2(b) hereof.

     Indemnified Holder: As defined in Section 9(a) hereof.

     Indenture: The Indenture, dated as of April 20, 2006, by and among the Company, the
Guarantors and Wells Fargo Bank, N.A., as trustee (the “Trustee”), pursuant to which the Securities
are to be issued, as such Indenture is amended or supplemented from time to time in accordance with
the terms thereof.

     Initial Purchasers: As defined in the preamble hereto.

     Initial Notes: As defined in the preamble hereto.

     Initial Placement: The issuance and sale by the Company of the Initial Securities to the
Initial Purchasers pursuant to the Purchase Agreement.

2

 

     Initial Securities: As defined in the preamble hereto.

     Interest Payment Date: As defined in the Indenture and the Securities.

     Issuer Free Writing Prospectus: As defined in Section 4(c) hereof.

     Market-Maker: As defined in Section 6 hereof.

     Market-Maker’s Information: As defined in Section 6 hereof.

     Market-Making Registration: As defined in Section 6 hereof.

     Market-Making Registration Statement: As defined in Section 6 hereof.

     NASD: NASD Inc.

     Person: An individual, partnership, corporation, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

     Prospectus: The prospectus included in a Registration Statement, as amended or supplemented
by any prospectus supplement and by all other amendments thereto, including post-effective
amendments, and all material incorporated by reference into such Prospectus.

     Registration Default: As defined in Section 5 hereof.

     Registration Statement: Any registration statement of the Company relating to (a) an offering
of Exchange Securities pursuant to an Exchange Offer, (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement, or (c) the Market-Making
Registration, which is filed pursuant to the provisions of this Agreement, in each case, including
the Prospectus included therein, all amendments and supplements thereto (including post-effective
amendments) and all exhibits and material incorporated by reference therein. Notwithstanding the
foregoing, solely for purposes of Section 7(c) hereof, the Market Making Registration Statement is
excluded from this definition of “Registration Statement.”

     Rule 430B Information: Any information included in a Prospectus that was omitted from the
Registration Statement at the time it became effective but that is deemed to be part of and
included in such Registration Statement pursuant to Rule 430B under the 1933 Act.

     Securities: The Initial Securities and the Exchange Securities.

     Securities Act: The Securities Act of 1933, as amended.

     Shelf Filing Deadline: As defined in Section 4(a) hereof.

     Shelf Registration Statement: As defined in Section 4(a) hereof.

     Trust Indenture Act: The Trust Indenture Act of 1939, as amended.

3

 

     Transfer Restricted Securities: Each Initial Security, until the earliest to occur of (a) the
date on which such Initial Security is exchanged in the Exchange Offer for an Exchange Security
entitled to be resold to the public by the Holder thereof without complying with the prospectus
delivery requirements of the Securities Act, (b) the date on which such Initial Security has been
effectively registered under the Securities Act and disposed of in accordance with a Shelf
Registration Statement, (c) the date on which such Initial Security is distributed to the public
pursuant to Rule 144 under the Securities Act or by a Broker-Dealer pursuant to the “Plan of
Distribution” contemplated by the Exchange Offer Registration Statement (including delivery of the
Prospectus contained therein), and (d) the date on which such Initial Security may be resold
without restriction pursuant to Rule 144(k) under the Securities Act.

     Underwritten Registration or Underwritten Offering: A registration in which securities of the
Company are sold to an underwriter for reoffering to the public.

     Section 2. Securities Subject to this Agreement.

     (a) Transfer Restricted Securities. The securities entitled to the benefits of this
Agreement are the Transfer Restricted Securities.

     (b) Holders of Transfer Restricted Securities. A Person is deemed to be a holder of Transfer
Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted Securities.
Holders may include one or more of the Initial Purchasers from time to time.

     Section 3. Registered Exchange Offer.

     (a) Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 7(a) hereof have been complied with), each of the
Company and the Guarantors shall use their reasonable best efforts to (i) cause to be filed with
the Commission as soon as practicable after the Closing Date, but in no event later than 90 days
after the Closing Date (or if such 90th day is not a Business Day, the next succeeding Business
Day), a Registration Statement under the Securities Act relating to the Exchange Securities and the
Exchange Offer, (ii) cause such Registration Statement to become effective at the earliest possible
time, but in no event later than 180 days after the Closing Date (or if such 180th day is not a
Business Day, the next succeeding Business Day), (iii) in connection with the foregoing, (A) file
all pre-effective amendments to such Registration Statement as may be necessary in order to cause
such Registration Statement to become effective, (B) if applicable, file a post-effective amendment
to such Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all
necessary filings in connection with the registration and qualification of the Exchange Securities
to be made under the state securities or blue sky laws of such jurisdictions as are necessary to
permit Consummation of the Exchange Offer, and (iv) upon the effectiveness of such Registration
Statement, commence the Exchange Offer. The Exchange Offer shall be on the appropriate form
permitting registration of the Exchange Securities to be offered in exchange for the Transfer
Restricted Securities and to permit resales of Initial Securities held by Broker-Dealers as
contemplated by Section 3(c) hereof.

4

 

     (b) The Company and the Guarantors shall cause the Exchange Offer Registration Statement to
be effective continuously and shall keep the Exchange Offer open for a period of not less than the
minimum period required under applicable federal and state securities laws to Consummate the
Exchange Offer; provided, however, that in no event shall such period be less than 30 days (or
longer if required by applicable law) after the date notice of the Exchange Offer is mailed to the
Holders. The Company shall cause the Exchange Offer to comply with all applicable federal and
state securities laws. No securities other than the Exchange Securities shall be included in the
Exchange Offer Registration Statement. The Company shall use its reasonable best efforts to cause
the Exchange Offer to be Consummated on the earliest practicable date after the Exchange Offer
Registration Statement has become effective, but in no event later than 210 days after the Closing
Date (or if such 210th day is not a Business Day, the next succeeding Business Day).

     (c) The Company shall indicate in a “Plan of Distribution” section contained in the
Prospectus forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who
holds Initial Securities that are Transfer Restricted Securities and that were acquired for its own
account as a result of market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Company), may exchange such Initial Securities
pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed to be an “underwriter”
within the meaning of the Securities Act and must, therefore, deliver a prospectus meeting the
requirements of the Securities Act in connection with any resales of the Exchange Securities
received by such Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may be
satisfied by the delivery by such Broker-Dealer of the Prospectus contained in the Exchange Offer
Registration Statement. Such “Plan of Distribution” section shall also contain all other
information with respect to such resales by Broker-Dealers that the Commission may require in order
to permit such resales pursuant thereto, but such “Plan of Distribution” shall not name any such
Broker-Dealer or disclose the amount of Initial Securities held by any such Broker-Dealer except to
the extent required by the Commission as a result of a change in policy after the date of this
Agreement.

     Each of the Company and the Guarantors shall use its reasonable best efforts to keep the
Exchange Offer Registration Statement continuously effective, supplemented and amended as required
by the provisions of Section 7(c) hereof to the extent necessary to ensure that it is available for
resales of Initial Securities acquired by Broker-Dealers for their own accounts as a result of
market-making activities or other trading activities, and to ensure that it conforms with the
requirements of this Agreement, the Securities Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period ending on the earlier of (i) 180 days from
the date on which the Exchange Offer Registration Statement is declared effective and (ii) the date
on which a Broker-Dealer is no longer required to deliver a prospectus in connection with
market-making or other trading activities.

     The Company shall provide sufficient copies of the latest version of such Prospectus to
Broker-Dealers promptly upon request at any time during such 180-day (or shorter as provided in the
foregoing sentence) period in order to facilitate such resales.

     (d) As a condition to its participation in the Exchange Offer pursuant to the terms of this
Agreement, each Holder of Transfer Restricted Securities shall furnish, upon the request of

5

 

the Company, prior to the Consummation thereof, a written representation to the Company (which
may be contained in the letter of transmittal contemplated by the Exchange Offer Registration
Statement) to the effect that (A) it is not an affiliate of the Company, (B) it is not engaged in,
and does not intend to engage in, and has no arrangement or understanding with any Person to
participate in, a distribution of the Exchange Securities to be issued in the Exchange Offer, (C)
it is acquiring the Exchange Securities in its ordinary course of business, (D) at the time of the
commencement of the Exchange Offer, such Holder will have no arrangement or understanding with any
Person to participate in the distribution (within the meaning of the Securities Act) of the
Exchange Securities in violation of the provisions of the Securities Act, and (E) if such Holder is
a Broker-Dealer that will receive Exchange Securities for its own account in exchange for Transfer
Restricted Securities that were acquired as a result of market-making or other trading activities,
that it will deliver a Prospectus in connection with any resale of such Exchange Securities. In
addition, all such Holders of Transfer Restricted Securities shall otherwise cooperate in the
Company’s preparations for the Exchange Offer. Each Holder hereby acknowledges and agrees that any
Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the
securities to be acquired in the Exchange Offer (1) could not under Commission policy as in effect
on the date of this Agreement rely on the position of the Commission enunciated in Morgan
Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation
(available May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated
July 2, 1993, and similar no-action letters (which may include any no-action letter obtained
pursuant to clause (i) above), and (2) must comply with the registration and prospectus delivery
requirements of the Securities Act in connection with a secondary resale transaction and that such
a secondary resale transaction should be covered by an effective registration statement containing
the selling security holder information required by Item 507 or 508, as applicable, of Regulation
S-K if the resales are of Exchange Securities obtained by such Holder in exchange for Initial
Securities acquired by such Holder directly from the Company.

     Section 4. Shelf Registration.

     (a) Shelf Registration. If (i) the Company is not required to file an Exchange Offer
Registration Statement or to consummate the Exchange Offer because the Exchange Offer is not
permitted by applicable law or Commission policy (after the procedures set forth in Section 7(a)
hereof have been complied with), (ii) for any reason the Exchange Offer is not Consummated within
210 days after the Closing Date (or if such 210th day is not a Business Day, the next succeeding
Business Day), or (iii) with respect to any Holder of Transfer Restricted Securities which notifies
the Company in writing prior to the 20th day following the Consummation of the Exchange Offer (A)
such Holder is prohibited by applicable law or Commission policy from participating in the Exchange
Offer, or (B) such Holder may not resell the Exchange Securities acquired by it in the Exchange
Offer to the public without delivering a prospectus and that the Prospectus contained in the
Exchange Offer Registration Statement is not appropriate or available for such resales by such
Holder, or (C) such Holder is a Broker-Dealer and holds Initial Securities acquired directly from
the Company or one of its affiliates, the Company and the Guarantors shall

     (x) cause to be filed a shelf registration statement pursuant to Rule 415 under the
Securities Act, which may be an amendment to the Exchange Offer Registration Statement (in
either event, the “Shelf Registration Statement”) as promptly as practicable,

6

 

and in any event on or prior to the earliest to occur of (1) the 30th day after the
date on which the Company determines that it is not required to file the Exchange Offer
Registration Statement, (2) the 240th day after the Closing Date (in the case of clause (ii)
above) (or if such 240th day is not a Business Day, the next succeeding Business Day) and
(3) the 30th day after the date on which the Company receives notice from a Holder of
Transfer Restricted Securities or an Initial Purchaser as contemplated by clause (iii) above
(such earliest date being the “Shelf Filing Deadline”), which Shelf Registration Statement
shall provide for resales of all Transfer Restricted Securities the Holders of which shall
have provided the information required pursuant to Section 4(b) hereof; and

     (y) use their reasonable best efforts to cause such Shelf Registration Statement to be
declared effective by the Commission on or before the 60th day after the Shelf Filing
Deadline (or if such 60th day is not a Business Day, the next succeeding Business Day).

     Each of the Company and the Guarantors shall use its reasonable best efforts to keep such
Shelf Registration Statement continuously effective, supplemented and amended as required by the
provisions of Sections 7(b) and (c) hereof to the extent necessary to ensure that it is available
for resales of Transfer Restricted Securities by the Holders entitled to the benefit of this
Section 4(a), and to ensure that it conforms with the requirements of this Agreement, the
Securities Act and the policies, rules and regulations of the Commission as announced from time to
time, for a period of at least two years following the effective date of such Shelf Registration
Statement (or shorter period that will terminate when all the Initial Securities covered by such
Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement).

     (b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such
Holder furnishes to the Company in writing, within 20 Business Days after receipt of a request
therefor, such information as the Company may reasonably request for use in connection with any
Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. By
acquiring the Initial Securities, each Holder agrees to provide the indemnity set forth in Section
9(b) hereof with respect to the information such Holder furnishes to the Company expressly for use
in any Shelf Registration Statement. Each Holder as to which any Shelf Registration Statement is
being effected agrees to furnish promptly to the Company all information required to be disclosed
in order to make the information previously furnished to the Company by such Holder not materially
misleading.

     (c) Issuer Free Writing Prospectuses. The Company represents that any Issuer Free Writing
Prospectus will not include any information that conflicts with the information contained in the
Shelf Registration Statement or the Prospectus and, any Issuer Free Writing Prospectus, when taken
together with the information in the Shelf Registration Statement and the Prospectus, will not
include any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading.

     Section 5. Additional Interest. If (i) the Exchange Offer Registration Statement or
any Shelf Registration Statement required by this Agreement is not filed with the Commission on or

7

 

prior to the date specified for such filing in this Agreement, (ii) the Exchange Offer
Registration Statement or any Shelf Registration Statement has not been declared effective by the
Commission on or prior to the date specified for such effectiveness in this Agreement (the
“Effectiveness Target Date”), (iii) the Exchange Offer has not been Consummated on or prior to the
date specified for such consummation in this Agreement or (iv) any Exchange Offer Registration
Statement or Shelf Registration Statement required by this Agreement is filed and declared
effective but shall thereafter cease to be effective or fail to be usable for its intended purpose
for more than 30 days (each such event referred to in clauses (i) through (iv), a “Registration
Default”), the Company hereby agrees that the interest rate borne by the Transfer Restricted
Securities shall be increased by 0.25% per annum during the 90-day period immediately following the
occurrence of any Registration Default and shall increase by 0.25% per annum at the end of each
subsequent 90-day period during which such Registration Default continues, but in no event shall
such increase exceed 1.00% per annum. Following the cure of all Registration Defaults relating to
any particular Transfer Restricted Securities, the interest rate borne by the relevant Transfer
Restricted Securities will be reduced to the original interest rate borne by such Transfer
Restricted Securities; provided, however, that, if after any such reduction in interest rate, a
different Registration Default occurs, the interest rate borne by the relevant Transfer Restricted
Securities shall again be increased pursuant to the foregoing provisions.

     All obligations of the Company and the Guarantors set forth in the preceding paragraph that
are outstanding with respect to any Transfer Restricted Security at the time such security ceases
to be a Transfer Restricted Security shall survive until such time as all such obligations with
respect to such security shall have been satisfied in full. Notwithstanding the foregoing, (i) the
amount of additional interest payable shall not increase because more than one Registration Default
has occurred and is pending, and (ii) a Holder of Transfer Restricted Securities or Exchange
Securities who is not entitled to the benefits of the Shelf Registration Statement shall not be
entitled to additional interest with respect to a Registration Default that pertains to the Shelf
Registration Statement.

     Section 6. Market-Making Registration.

     (a) For the sole benefit of Credit Suisse Securities (USA) LLC (in such capacity, the
“Market-Maker”) or any of its affiliates (as defined in the rules and regulations of the
Commission), so long as (x) any of the Transfer Restricted Securities or Exchange Securities are
outstanding and (y) the Market-Maker or any of its affiliates is an affiliate of the Company, the
Guarantors or any of their respective affiliates and the Market-Maker proposes to make a market in
the Transfer Restricted Securities or Exchange Securities as part of its business in the ordinary
course, the following provisions shall apply for the sole benefit of the Market-Maker:

     (i) The Company and the Guarantors shall file under the Securities Act a registration
statement (which may be the Exchange Offer Registration Statement or the Shelf Registration
Statement if permitted by the rules and regulations of the Commission), in a form reasonably
acceptable to the Market-Maker (such filing, the “Market-Making Registration,” and such
registration statement, the “Market-Making Registration Statement”). The Company and the
Guarantors agree to use their reasonable best efforts to cause the Market-Making
Registration Statement to be declared effective on or prior to (i) the date the Exchange
Offer is completed pursuant to Section 3 above or

8

 

     (ii) the date the Shelf Registration becomes or is declared effective pursuant to
Section 4 above, and to keep such Market-Making Registration Statement continuously
effective for so long as the Market-Maker may be required to deliver a Prospectus in
connection with transactions in the Securities or the Exchange Securities, as the case may
be. In the event that the Market-Maker holds Securities at the time an Exchange Offer is to
be conducted under Section 3 above, the Company and the Guarantors agree that the
Market-Making Registration shall, if permitted by Commission rules and regulations, provide
for the resale by the Market-Maker of such Securities and shall be kept continuously
effective for so long as the Market-Maker may be required to deliver a Prospectus in
connection with the sale of such Securities. The Company and the Guarantors further agree
to supplement or make amendments to the Market-Making Registration Statement, as and when
required by the rules, regulations or instructions applicable to the registration form used
by the Company and the Guarantors for such Market-Making Registration Statement, and the
Company and the Guarantors agree to furnish to the Market-Maker copies of any such
supplement or amendment prior to its being used or promptly following its filing with the
Commission.

     (ii) Notwithstanding the foregoing, the Company may suspend the offering and sale
under the Market-Making Registration Statement for a period or periods that the Board of
Directors of the Company reasonably determines to be advisable for valid business reasons,
but in any event not to exceed 60 days (or such period as otherwise acceptable to the
Market-Maker) in each year during which the Market-Making Registration Statement is required
to be effective and usable hereunder (measured from the effective time of the Market-Making
Registration Statement to successive anniversaries thereof) if (A) (i) the Board of
Directors of the Company determines in good faith that such action is in the best interests
of the Company or (ii) the Market Making Registration Statement, Prospectus or amendment or
supplement thereto contains an untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, and (B) the Company notifies the
Market-Maker within five days after such Board of Directors makes the relevant determination
set forth in clause (A).

     (iii) The Company shall notify the Market-Maker (A) when any post-effective amendment
to the Market-Making Registration Statement or any amendment or supplement to the related
Prospectus has been filed, and, with respect to any post-effective amendment, when the same
has become effective; (B) of any request by the Commission for any post-effective amendment
to the Market-Making Registration Statement, any supplement or amendment to the related
Prospectus or for additional information; (C) the issuance by the Commission of any stop
order suspending the effectiveness of the Market-Making Registration Statement or the
initiation of any proceedings for that purpose; (D) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the Transfer Restricted
Securities or Exchange Securities for sale in any jurisdiction or the initiation or
threatening of any proceedings for such purpose; and (E) within 5 days after the happening
of any event that results in the Market-Making Registration Statement, the related
Prospectus or any amendment or supplement containing an untrue statement of a material fact
or omitting to

9

 

state a material fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading.

     (iv) If any event contemplated by Section 6(a)(iii)(B) through (E) occurs during the
period for which the Company and the Guarantors are required to maintain an effective
Market-Making Registration Statement, the Company and the Guarantors shall promptly prepare
and file with the Commission a post-effective amendment to the Market-Making Registration
Statement or a supplement to the related Prospectus or file any other required document so
that the Prospectus will not include an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

     (v) In the event of the issuance of any stop order suspending the effectiveness of the
Market-Making Registration Statement or of any order suspending the qualification of the
Transfer Restricted Securities or Exchange Securities for sale in any jurisdiction, the
Company and the Guarantors shall promptly use their reasonable best efforts to obtain its
withdrawal.

     (vi) The Company shall furnish to the Market-Maker, without charge, (i) at least one
conformed copy of the Market-Making Registration Statement and any post-effective amendment
thereto; and (ii) as many copies of the related Prospectus and any amendment or supplement
thereto as the Market-Maker may reasonably request.

     (vii) The Company and the Guarantors shall consent to the use of the Prospectus
contained in the Market-Making Registration Statement or any amendment or supplement thereto
by the Market-Maker in connection with its market-making activities.

     (viii) Notwithstanding the foregoing provisions of this Section 6, the Company may for
valid business reasons, including without limitation, a potential acquisition, divestiture
of assets or other material corporate transaction, or if required under the Securities Act
or Exchange Act, issue a notice that the Market-Making Registration Statement is no longer
effective or the Prospectus included therein is no longer usable for offers and sales of
Transfer Restricted Securities or Exchange Securities and may issue any notice suspending
use of the Market-Making Registration Statement required under applicable securities laws to
be issued for so long as valid business reasons exist and the Company shall not be obligated
to amend or supplement the Market-Making Registration Statement or the Prospectus included
therein until it reasonably deems appropriate. The Market-Maker agrees that upon receipt of
any notice from the Company pursuant to this Section 6(a)(viii), it will discontinue use of
the Market-Making Registration Statement until receipt of copies of the supplemented or
amended Prospectus relating thereto and until advised in writing by the Company that the use
of the Market-Making Registration Statement may be resumed.

     (b) In connection with the Market-Making Registration, the Company shall (i) make reasonably
available for inspection by a representative of, and counsel acting for, the Market-Maker all
relevant financial and other records, pertinent corporate documents and properties of the Company
and the Guarantors and (ii) use its reasonable best efforts to have its officers,

10

 

directors, employees, accountants and counsel supply all relevant information reasonably
requested by such representative or counsel or the Market-Maker.

     (c) Prior to the effective date of the Market-Making Registration Statement, the Company and
the Guarantors will use their reasonable best efforts to register or qualify such Transfer
Restricted Securities or Exchange Securities for offer and sale under the securities or blue sky
laws of such jurisdictions as the Market-Maker reasonably requests in writing and do any and all
other acts or things necessary or advisable to enable the offer and sale in such jurisdictions of
the Transfer Restricted Securities or Exchange Securities covered by the Market-Making Registration
Statement; provided that the Company and the Guarantors will not be required to qualify generally
to do business in any jurisdiction where they are not then so qualified or to take any action which
would subject them to general service of process or to taxation in any such jurisdiction where they
are not then so subject.

     (d) The Company represents that the Market-Making Registration Statement, any post-effective
amendments thereto, any amendments or supplements to the related Prospectus and any documents filed
by them under the Exchange Act will, when they become effective or are filed with the Commission,
as the case may be, conform in all material respects to the requirements of the Securities Act and
the Exchange Act and the rules and regulations of the Commission thereunder and will not, as of the
effective date of such Market-Making Registration Statement or post-effective amendments and as of
the filing date of amendments or supplements to such Prospectus or filings under the Exchange Act,
contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; provided that no representation or warranty is made as to
information contained in or omitted from the Market-Making Registration Statement or the related
Prospectus in reliance upon and in conformity with written information furnished to the Company by
the Market-Maker specifically for inclusion therein, which information the parties hereto agree
will be limited to the statements concerning the market-making activities of the Market-Maker to be
set forth on the cover page and in the “Plan of Distribution” section of the Prospectus (the
“Market-Maker’s Information”).

     (e) At the time of effectiveness of the Market-Making Registration Statement (unless it is
the same as the time of effectiveness of the Exchange Offer Registration Statement) and
concurrently with each time the Market-Making Registration Statement or the related Prospectus
shall be amended or such Prospectus shall be supplemented, the Company shall notify the
Market-Maker and its counsel that:

     (i) the Market-Making Registration Statement has been declared effective;

     (ii) in the case of an amendment or supplement, such amendment has become effective
under the Securities Act, and if required, such amendment or supplement to the Prospectus
was filed with the Commission pursuant to the subparagraph of Rule 424(b) under the
Securities Act; and

     (iii) if requested by the Market-Maker after notice has been provided pursuant to
clauses (i) or (ii) above, as of the date of the Market-Making Registration Statement,
amendment or supplement, as applicable, the Market-Making Registration Statement and

11

 

the Prospectus, as amended or supplemented, if applicable, did not include any untrue
statement of a material fact and did not omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading.

     (f) The Company and the Guarantors, on the one hand, and the Market-Maker, on the other hand,
hereby agree to indemnify each other, and, if applicable, contribute to the other, in accordance
with Section 9 of this Agreement.

     (g) The Company and the Guarantors will comply with the provisions of this Section 6 at their
own expense and will reimburse the Market-Maker for its reasonable expenses associated with this
Section 6 (including reasonable fees of counsel).

     (h) The agreements contained in this Section 6 and the representations, warranties and
agreements contained in this Agreement shall survive all offers and sales of the Transfer
Restricted Securities or Exchange Securities and shall remain in full force and effect for so long
as any of the Transfer Restricted Securities or Exchange Securities are outstanding, regardless of
any termination or cancellation of this Agreement or any investigation made by or on behalf of any
indemnified party.

     (i) For purposes of this Section 6, any reference to the terms “amend,” “amendment” or
“supplement” with respect to the Market-Making Registration Statement or the Prospectus contained
therein shall be deemed to refer to and include the filing under the Exchange Act of any document
deemed to be incorporated therein by reference.

     Section 7. Registration Procedures.

     (a) Exchange Offer Registration Statement. In connection with the Exchange Offer, the
Company and the Guarantors shall comply with all of the provisions of Section 7(c) hereof, shall
use their reasonable best efforts to effect such exchange to permit the sale of Transfer Restricted
Securities being sold in accordance with the intended method or methods of distribution thereof.

     (b) Shelf Registration Statement. In connection with the Shelf Registration Statement, each
of the Company and the Guarantors shall comply with all the provisions of Section 7(c) hereof and
shall use its reasonable best efforts to effect such registration to permit the sale of the
Transfer Restricted Securities being sold in accordance with the intended method or methods of
distribution thereof, and pursuant thereto each of the Company and the Guarantors will as
expeditiously as possible prepare and file with the Commission a Registration Statement relating to
the registration on any appropriate form under the Securities Act, which form shall be available
for the sale of the Transfer Restricted Securities in accordance with the intended method or
methods of distribution thereof.

     (c) General Provisions. In connection with any Exchange Offer Registration Statement, any
Shelf Registration Statement and any Prospectus related thereto required by this Agreement to
permit the sale or resale of Transfer Restricted Securities (including, without limitation, any
Exchange Offer Registration Statement, any Shelf Registration Statement and the related Prospectus
required to permit resales of Initial Securities by Broker-Dealers), each of the Company and the
Guarantors shall:

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     (i) use its reasonable best efforts to keep such Registration Statement continuously
effective and provide all requisite financial statements (including, if required by the
Securities Act or any regulation thereunder, financial statements of the Guarantors) for the
period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event
that would cause any such Registration Statement or the Prospectus contained therein (A) to
contain a material misstatement or omission or (B) not to be effective and usable for resale
of Transfer Restricted Securities during the period required by this Agreement, the Company
shall file promptly an appropriate amendment to such Registration Statement, in the case of
clause (A), correcting any such misstatement or omission, and, in the case of either clause
(A) or (B), use its reasonable best efforts to cause such amendment to be declared effective
and such Registration Statement and the related Prospectus to become usable for their
intended purpose(s) as soon as practicable thereafter;

     (ii) prepare and file with the Commission such amendments and post-effective
amendments to the applicable Registration Statement as may be necessary to keep the
Registration Statement effective for the applicable period set forth in Section 3 or 4
hereof, as applicable, or such shorter period as will terminate when all Transfer Restricted
Securities covered by such Registration Statement have been sold; cause the Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 under the Securities Act, and to comply fully with the provisions of
Rules 424 and 430A under the Securities Act, to the extent applicable, in a timely manner;
and comply with the provisions of the Securities Act with respect to the disposition of all
securities covered by such Registration Statement during the applicable period in accordance
with the intended method or methods of distribution by the sellers thereof set forth in such
Registration Statement or supplement to the Prospectus;

     (iii) advise the underwriter(s), if any, and selling Holders promptly and, if
requested by such Persons, to confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with respect to any
Registration Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the Registration Statement
or amendments or supplements to the Prospectus or for additional information relating
thereto, (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement under the Securities Act or of the suspension by
any state securities commission of the qualification of the Transfer Restricted Securities
for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, (D) of the existence of any fact or the happening of any event that
makes any statement of a material fact made in the Registration Statement, the Prospectus,
any amendment or supplement thereto, or any document incorporated by reference therein
untrue, or that requires the making of any additions to or changes in the Registration
Statement or the Prospectus in order to make the statements therein not misleading. If at
any time the Commission shall issue any stop order suspending the effectiveness of the
Registration Statement, or any state securities commission or other regulatory authority
shall issue an order suspending the qualification or exemption from qualification of the
Transfer Restricted Securities under state

13

 

securities or blue sky laws, each of the Company and the Guarantors shall use its
reasonable best efforts to obtain the withdrawal or lifting of such order at the earliest
possible time;

     (iv) furnish without charge to each of the Initial Purchasers, each selling Holder
named in any Registration Statement, and each of the underwriter(s), if any, before filing
with the Commission, copies of any Registration Statement or any Prospectus included therein
or any amendments or supplements to any such Registration Statement or Prospectus (including
all documents incorporated by reference after the initial filing of such Registration
Statement), which documents will be subject to the review and comment of such Holders and
underwriter(s) in connection with such sale, if any, for a period of at least three Business
Days, and the Company will not file any such Registration Statement or Prospectus or any
amendment or supplement to any such Registration Statement or Prospectus (including all such
documents incorporated by reference) to which an Initial Purchaser of Transfer Restricted
Securities covered by such Registration Statement or the underwriter(s), if any, shall
reasonably object in writing within three Business Days after the receipt thereof (such
objection to be deemed timely made upon confirmation of telecopy transmission within such
period). The objection of an Initial Purchaser or underwriter, if any, shall be deemed to
be reasonable if such Registration Statement, amendment, Prospectus or supplement, as
applicable, as proposed to be filed, contains a material misstatement or omission;

     (v) promptly prior to the filing of any document that is to be incorporated by
reference into a Registration Statement or Prospectus, provide copies of such document to
the Initial Purchasers, each selling Holder named in any Registration Statement, and to the
underwriter(s), if any, make the Company’s and the Guarantors’ management, officers and
other representatives available for discussion of such document and other customary due
diligence matters, and include such information in such document prior to the filing thereof
as such selling Holders or underwriter(s), if any, reasonably may request;

     (vi) make available at reasonable times for inspection by the Initial Purchasers, the
managing underwriter(s), if any, participating in any disposition pursuant to such
Registration Statement and any attorney or accountant retained by such Initial Purchasers or
any of the underwriter(s), all financial and other records, pertinent corporate documents
and properties of each of the Company and the Guarantors and cause the Company’s and the
Guarantors’ officers, directors and employees to supply all information reasonably requested
by any such Holder, underwriter, attorney or accountant in connection with such Registration
Statement or any post-effective amendment thereto subsequent to the filing thereof and prior
to its effectiveness and to participate in meetings with investors to the extent requested
by any Holder, the Initial Purchasers or the managing underwriter(s), if any;

     (vii) if requested by any selling Holders or the underwriter(s), if any, promptly
incorporate in any Registration Statement or Prospectus, pursuant to a supplement or
post-effective amendment if necessary, such information as such selling Holders and
underwriter(s), if any, may reasonably request to have included therein, including,

14

 

without limitation, information relating to the “Plan of Distribution” of the Transfer
Restricted Securities, information with respect to the principal amount of Transfer
Restricted Securities being sold to such underwriter(s), the purchase price being paid
therefor and any other terms of the offering of the Transfer Restricted Securities to be
sold in such offering; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as practicable after the Company is notified of the matters
to be incorporated in such Prospectus supplement or post-effective amendment;

     (viii) cause the Transfer Restricted Securities covered by the Registration Statement
to be rated with the appropriate rating agencies, if so requested by the Holders of a
majority in aggregate principal amount of Securities covered thereby or the underwriter(s),
if any;

     (ix) furnish to each selling Holder and each of the underwriter(s), if any, without
charge, at least one copy of the Registration Statement, as first filed with the Commission,
and of each amendment thereto, including financial statements and schedules, all documents
incorporated by reference therein and all exhibits (including exhibits incorporated therein
by reference);

     (x) deliver to each selling Holder and each of the underwriter(s), if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; each of the Company
and the Guarantors hereby consents to the use of the Prospectus and any amendment or
supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in
connection with the offering and the sale of the Transfer Restricted Securities covered by
the Prospectus or any amendment or supplement thereto;

     (xi) enter into such agreements (including an underwriting agreement), and make such
representations and warranties, and take all such other actions in connection therewith in
order to expedite or facilitate the disposition of the Transfer Restricted Securities
pursuant to any Registration Statement contemplated by this Agreement, all to such extent as
may be requested by any Holder of Transfer Restricted Securities or underwriter in
connection with any sale or resale pursuant to any Registration Statement contemplated by
this Agreement; and whether or not an underwriting agreement is entered into and whether or
not the registration is an Underwritten Registration, each of the Company and the Guarantors
shall:

     (A) furnish to each Initial Purchaser, each selling Holder and each
underwriter, if any, in such substance and scope as they may request and as are
customarily made by issuers to underwriters in primary underwritten offerings, upon
the date of the Consummation of the Exchange Offer and, if applicable, the
effectiveness of the Shelf Registration Statement:

     (1) a certificate, dated the date of Consummation of the Exchange
Offer or the date of effectiveness of the Shelf Registration Statement, as
the case may be, signed by (y) the President or any Vice President and (z) a
principal financial or accounting officer of each of the Company and the

15

 

Guarantors, confirming, as of the date thereof, the matters set forth
in paragraphs (i), (ii) and (iii) of Section 5(e) of the Purchase Agreement
and such other matters as such parties may reasonably request;

     (2) an opinion, dated the date of Consummation of the Exchange Offer
or the date of effectiveness of the Shelf Registration Statement, as the
case may be, of counsel for the Company and the Guarantors, covering the
matters set forth in Section 5(c) of the Purchase Agreement and such other
matter as such parties may reasonably request, and in any event including a
statement to the effect that such counsel has participated in conferences
with officers and other representatives of the Company and the Guarantors,
representatives of the independent public accountants for the Company and
the Guarantors, representatives of the underwriter(s), if any, and counsel
to the underwriter(s), if any, in connection with the preparation of such
Registration Statement and the related Prospectus and have considered the
matters required to be stated therein and the statements contained therein,
although such counsel has not independently verified the accuracy,
completeness or fairness of such statements; and that such counsel advises
that, on the basis of the foregoing, no facts came to such counsel’s
attention that caused such counsel to believe that the applicable
Registration Statement, at the time such Registration Statement or any
post-effective amendment thereto became effective, and, in the case of the
Exchange Offer Registration Statement, as of the date of Consummation,
contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading, or that the Prospectus contained in such
Registration Statement as of its date and, in the case of the opinion dated
the date of Consummation of the Exchange Offer, as of the date of
Consummation, contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein not
misleading. Without limiting the foregoing, such counsel may state further
that such counsel assumes no responsibility for, and has not independently
verified, the accuracy, completeness or fairness of the financial
statements, notes and schedules and other financial data and statistical
data derived from such financial statements, notes and schedules and other
financial, oil and gas reserves or prospects or production data included in
any Registration Statement contemplated by this Agreement or the related
Prospectus; and

     (3) a customary comfort letter, dated the date of effectiveness of the
Shelf Registration Statement, from the Company’s independent accountants, in
the customary form and covering matters of the type customarily requested to
be covered in comfort letters by underwriters in connection with primary
underwritten offerings, and covering or affirming the matters set forth in
the comfort letters delivered pursuant to Section 5(a) of the Purchase
Agreement, without exception;

16

 

     (B) set forth in full or incorporate by reference in the underwriting
agreement, if any, the indemnification provisions and procedures of Section 9 hereof
with respect to all parties to be indemnified pursuant to said Section; and

     (C) deliver such other documents and certificates as may be reasonably
requested by such parties to evidence compliance with Section 7(c)(xi)(A) hereof and
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company or any of the Guarantors pursuant to this
Section 7(c)(xi), if any.

     If at any time the representations and warranties of the Company and the Guarantors
contemplated in Section 7(c)(xi)(A)(1) hereof cease to be true and correct, the Company or
the Guarantors shall so advise the Initial Purchasers and the underwriter(s), if any, and
each selling Holder promptly and, if requested by such Persons, shall confirm such advice in
writing;

     (xii) prior to any public offering of Transfer Restricted Securities, cooperate with
the selling Holders, the underwriter(s), if any, and their respective counsel in connection
with the registration and qualification of the Transfer Restricted Securities under the
state securities or blue sky laws of such jurisdictions as the selling Holders or
underwriter(s), if any, may request and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Transfer Restricted
Securities covered by the Shelf Registration Statement; provided, however, that none of the
Company or the Guarantors shall be required to register or qualify as a foreign corporation
where it is not then so qualified or to take any action that would subject it to the service
of process in suits or to taxation, other than as to matters and transactions relating to
the Registration Statement, in any jurisdiction where it is not then so subject;

     (xiii) shall issue, upon the request of any Holder of Initial Securities covered by
the Exchange Offer Registration Statement, Exchange Securities having an aggregate principal
amount equal to the aggregate principal amount of Initial Securities surrendered to the
Company by such Holder in exchange therefor or being sold by such Holder; such Exchange
Securities to be registered in the name of such Holder or in the name of the purchaser(s) of
such Exchange Securities, as the case may be; in return, the Initial Securities held by such
Holder shall be surrendered to the Company for cancellation;

     (xiv) cooperate with the selling Holders and the underwriter(s), if any, to facilitate
the timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and enable such Transfer
Restricted Securities to be in such denominations and registered in such names as the
Holders or the underwriter(s), if any, may request at least two Business Days prior to any
sale of Transfer Restricted Securities made by such Holders or underwriter(s);

     (xv) use its reasonable best efforts to cause the Transfer Restricted Securities
covered by the Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller or sellers

17

 

thereof or the underwriter(s), if any, to consummate the disposition of such Transfer
Restricted Securities, subject to the proviso contained in Section 7(c)(xii) hereof;

     (xvi) if any fact or event contemplated by Section 7(c)(iii)(D) hereof shall exist or
have occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, the Prospectus will not contain an untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein
not misleading;

     (xvii) provide a CUSIP number for all Transfer Restricted Securities not later than
the effective date of the Registration Statement covering such Transfer Restricted
Securities and provide the Trustee under the Indenture with printed certificates for such
Transfer Restricted Securities which are in a form eligible for deposit with the Depository
Trust Company and take all other reasonable action necessary to ensure that all such
Transfer Restricted Securities are eligible for deposit with the Depository Trust Company;

     (xviii) cooperate and assist in any filings required to be made with the NASD and in
the performance of any due diligence investigation by any underwriter (including any
“qualified independent underwriter”) that is required to be retained in accordance with the
rules and regulations of the NASD, and use its reasonable best efforts to cause such
Registration Statement to become effective and approved by such governmental agencies or
authorities as may be necessary to enable the Holders selling Transfer Restricted Securities
to consummate the disposition of such Transfer Restricted Securities;

     (xix) otherwise use its reasonable best efforts to comply with all applicable rules
and regulations of the Commission, and make generally available to its security holders, as
soon as practicable, a consolidated earnings statement meeting the requirements of Rule 158
(which need not be audited) for the twelve-month period (A) commencing at the end of any
fiscal quarter in which Transfer Restricted Securities are sold to underwriters in a firm
commitment or best efforts Underwritten Offering or (B) if not sold to underwriters in such
an offering, beginning with the first month of the Company’s first fiscal quarter commencing
after the effective date of the Registration Statement;

     (xx) cause the Indenture to be qualified under the Trust Indenture Act not later than
the effective date of the first Registration Statement required by this Agreement, and, in
connection therewith, cooperate with the Trustee and the Holders of Securities to effect
such changes to the Indenture as may be required for such Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and to execute and use its reasonable
best efforts to cause the Trustee to execute, all documents that may be required to effect
such changes and all other forms and documents required to be filed with the Commission to
enable such Indenture to be so qualified in a timely manner;

     (xxi) cause all Securities covered by the Registration Statement to be listed on each
securities exchange or automated quotation system on which similar securities

18

 

issued by the Company are then listed if requested by the Holders of a majority in
aggregate principal amount of Initial Securities or the managing underwriter(s), if any; and

     (xxii) provide promptly to each Holder upon request each document filed with the
Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act.

     Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of any
notice from the Company of the existence of any fact of the kind described in Section 7(c)(iii)(D)
hereof, such Holder will forthwith discontinue disposition of Transfer Restricted Securities
pursuant to the applicable Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 7(c)(xvi) hereof, or until it is advised
in writing (the “Advice”) by the Company that the use of the Prospectus may be resumed, and has
received copies of any additional or supplemental filings that are incorporated by reference in the
Prospectus. If so directed by the Company, each Holder will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Transfer Restricted Securities that was current at the time of
receipt of such notice. In the event the Company shall give any such notice, the time period
regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as
applicable, shall be extended by the number of days during the period from and including the date
of the giving of such notice pursuant to Section 7(c)(iii)(D) hereof to and including the date when
each selling Holder covered by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 7(c)(xvi) hereof or shall have received
the Advice; provided, however, that no such extension shall be taken into account in determining
whether Additional Interest is due pursuant to Section 5 hereof or the amount of such Additional
Interest, it being agreed that the Company’s option to suspend use of a Registration Statement
pursuant to this paragraph shall be treated as a Registration Default for purposes of Section 5
hereof.

     Section 8. Registration Expenses.

     (a) All expenses incident to the Company’s and the Guarantors’ performance of or compliance
with this Agreement will be borne by the Company and the Guarantors jointly and severally,
regardless of whether a Registration Statement becomes effective, including, without limitation:
(i) all registration and filing fees and expenses (including filings made by any Initial Purchaser
or Holder with the NASD (and, if applicable, the fees and expenses of any “qualified independent
underwriter” and its counsel that may be required by the rules and regulations of the NASD)); (ii)
all fees and expenses of compliance with federal securities and state securities or blue sky laws;
(iii) all expenses of printing (including printing certificates for the Exchange Securities to be
issued in the Exchange Offer and printing of Prospectuses), messenger and delivery services and
telephone; (iv) all fees and disbursements of counsel for the Company, the Guarantors and, subject
to Section 8(b) hereof, the Holders of Transfer Restricted Securities; (v) all application and
filing fees in connection with listing the Exchange Securities on a securities exchange or
automated quotation system pursuant to the requirements thereof; and (vi) all fees and
disbursements of independent certified public accountants of the Company and the

19

 

Guarantors (including the expenses of any special audit and comfort letters required by or
incident to such performance).

     Each of the Company and the Guarantors will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expenses of any annual audit and the fees and expenses of any
Person, including special experts, retained by the Company or the Guarantors.

     (b) In connection with any Registration Statement required by this Agreement (including,
without limitation, the Exchange Offer Registration Statement and the Shelf Registration
Statement), the Company and the Guarantors, jointly and severally, will reimburse the Holders of
Transfer Restricted Securities being tendered in the Exchange Offer and/or resold pursuant to the
“Plan of Distribution” contained in the Exchange Offer Registration Statement or registered
pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Fried, Frank, Harris, Shriver & Jacobson
LLP or such other counsel as may be chosen by the Holders of a majority in principal amount of the
Transfer Restricted Securities for whose benefit such Registration Statement is being prepared.

     Section 9. Indemnification.

     (a) The Company and the Guarantors, jointly and severally, agree to indemnify and hold
harmless (i) each Holder (including, without limitation, the Initial Purchasers and the
Market-Maker) and (ii) each Person, if any, who controls (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) any Holder (any of the Persons referred to in
this clause (ii) being hereinafter referred to as a “controlling person”) and (iii) the respective
officers, directors, partners, employees, representatives and agents of any Holder or any
controlling person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be referred
to as an “Indemnified Holder”), to the fullest extent lawful, from and against any and all losses,
claims, damages, liabilities, judgments, actions and expenses (including, without limitation, and
as incurred, reimbursement of all reasonable costs of investigating, preparing, pursuing, settling,
compromising, paying or defending any claim or action, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, including the reasonable fees and expenses of
counsel to any Indemnified Holder), joint or several, directly or indirectly caused by, related to,
based upon, arising out of or in connection with any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement (including the Rule 430B Information) or
Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any
amendment or supplement thereto), or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, or,
in the case of the Market-Maker, any breach by the Company or the Guarantors of their
representations, warranties and agreements contained in Section 6 hereof, except insofar as such
losses, claims, damages, liabilities or expenses are caused by an untrue statement or omission or
alleged untrue statement or omission that is made in reliance upon and in conformity with
information relating to any of the Holders furnished in writing to the Company by any of the
Holders expressly for use therein. This indemnity agreement shall be in addition to any liability
which the Company or any of the Guarantors may otherwise have.

20

 

     In case any action or proceeding (including any governmental or regulatory investigation or
proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to
which indemnity may be sought against the Company or the Guarantors, such Indemnified Holder (or
the Indemnified Holder controlled by such controlling person) shall promptly notify the Company and
the Guarantors in writing; provided, however, that the failure to give such notice shall not
relieve any of the Company or the Guarantors of its obligations pursuant to this Agreement. Such
Indemnified Holder shall have the right to employ its own counsel in any such action and the fees
and expenses of such counsel shall be paid, as incurred, by the Company and the Guarantors
(regardless of whether it is ultimately determined that an Indemnified Holder is not entitled to
indemnification hereunder). The Company and the Guarantors shall not, in connection with any one
such action or proceeding or separate but substantially similar or related actions or proceedings
in the same jurisdiction arising out of the same general allegations or circumstances, be liable
for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel) at any time for such Indemnified Holders, which firm shall be designated by the
Holders. The Company and the Guarantors shall be liable for any settlement of any such action or
proceeding effected with the Company’s and the Guarantors’ prior written consent, which consent
shall not be withheld unreasonably, and each of the Company and the Guarantors agrees to indemnify
and hold harmless any Indemnified Holder from and against any loss, claim, damage, liability or
expense by reason of any settlement of any action effected with the written consent of the Company
and the Guarantors. The Company and the Guarantors shall not, without the prior written consent of
each Indemnified Holder, settle or compromise or consent to the entry of judgment in or otherwise
seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of
which indemnification or contribution may be sought hereunder (whether or not any Indemnified
Holder is a party thereto), unless such settlement, compromise, consent or termination includes an
unconditional release of each Indemnified Holder from all liability arising out of such action,
claim, litigation or proceeding.

     (b) Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Company, the Guarantors and their respective directors, officers of
the Company and the Guarantors who sign a Registration Statement, and any Person controlling
(within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the
Company or any of the Guarantors, and the respective officers, directors, partners, employees,
representatives and agents of each such Person, to the same extent as the foregoing indemnity from
the Company and the Guarantors to each of the Indemnified Holders, but only with respect to claims
and actions based on information relating to such Holder furnished in writing by such Holder
expressly for use in any Registration Statement. In case any action or proceeding shall be brought
against the Company, the Guarantors or their respective directors or officers or any such
controlling person in respect of which indemnity may be sought against a Holder of Transfer
Restricted Securities, such Holder shall have the rights and duties given the Company and the
Guarantors, and the Company, the Guarantor, their respective directors and officers and such
controlling person shall have the rights and duties given to each Holder by the preceding
paragraph.

     (c) If the indemnification provided for in this Section 9 is unavailable to an indemnified
party under Section 9(a) or (b) hereof (other than by reason of exceptions provided in those
Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses

21

 

referred to therein, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one
hand, and the Holders, on the other hand, from the Initial Placement (which in the case of the
Company and the Guarantors shall be deemed to be equal to the total gross proceeds to the Company
and the Guarantors from the Initial Placement), the amount of Additional Interest which did not
become payable as a result of the filing of the Registration Statement resulting in such losses,
claims, damages, liabilities, judgments actions or expenses, and such Registration Statement, or if
such allocation is not permitted by applicable law, the relative fault of the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements
or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative fault of the Company and the Guarantors
on the one hand and of the Indemnified Holder on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company or any of the Guarantors, on the one hand, or the Indemnified Holders, on the other hand,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The amount paid or payable by a party as a result of the
losses, claims, damages, liabilities and expenses referred to above shall be deemed to include,
subject to the limitations set forth in the second paragraph of Section 9(a) hereof, any legal or
other fees or expenses reasonably incurred by such party in connection with investigating or
defending any action or claim.

     The Company, the Guarantors and each Holder of Transfer Restricted Securities agree that it
would not be just and equitable if contribution pursuant to this Section 9(c) were determined by
pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable considerations referred to
in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, liabilities or expenses referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 9, none of the Holders (and its related Indemnified Holders) shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the total discount
received by such Holder with respect to the Initial Securities exceeds the amount of any damages
which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to
contribute pursuant to this Section 9(c) are several in proportion to the respective principal
amount of Initial Securities held by each of the Holders hereunder and not joint.

     Section 10. Rule 144A. Each of the Company and the Guarantors hereby agrees with
each Holder, for so long as any Transfer Restricted Securities remain outstanding, to make
available to any Holder or beneficial owner of Transfer Restricted Securities in connection with

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any sale thereof and any prospective purchaser of such Transfer Restricted Securities from
such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities
Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144A under
the Securities Act.

     Section 11. Participation in Underwritten Registrations. No Holder may participate
in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s
Transfer Restricted Securities on the basis provided in any underwriting arrangements approved by
the Persons entitled hereunder to approve such arrangements and (b) completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up
letters and other documents required under the terms of such underwriting arrangements.

     Section 12. Selection of Underwriters. The Holders of Transfer Restricted
Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer
Restricted Securities in an Underwritten Offering. In any such Underwritten Offering, the
investment banker(s) and managing underwriter(s) that will administer such offering will be
selected by the Holders of a majority in aggregate principal amount of the Transfer Restricted
Securities included in such offering; provided, however, that such investment banker(s) and
managing underwriter(s) must be reasonably satisfactory to the Company.

     Section 13. Miscellaneous.

     (a) Remedies. Each of the Company and the Guarantors hereby agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agree to waive the defense in any action for specific
performance that a remedy at law would be adequate.

     (b) No Inconsistent Agreements. Each of the Company and the Guarantors will not on or after
the date of this Agreement enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. Neither the Company nor any of the Guarantors has previously entered into
any agreement granting any registration rights with respect to its securities to any Person. The
rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company’s or any of the Guarantors’ securities under
any agreement in effect on the date hereof.

     (c) Adjustments Affecting the Securities. The Company will not take any action, or permit
any change to occur, with respect to the Securities that would materially and adversely affect the
ability of the Holders to Consummate any Exchange Offer.

     (d) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given
unless the Company has (i) in the case of Section 5 hereof and this Section 13(d)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case
of all other provisions hereof, obtained the written consent of Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities (excluding any Transfer Restricted
Securities held by the Company or its Affiliates). Notwithstanding the

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foregoing, a waiver or consent to departure from the provisions hereof that relates
exclusively to the rights of Holders whose securities are being tendered pursuant to the Exchange
Offer and that does not affect directly or indirectly the rights of other Holders whose securities
are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of
the outstanding principal amount of Transfer Restricted Securities being tendered or registered;
provided, however, that, with respect to any matter that directly or indirectly affects the rights
of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such
Initial Purchaser with respect to which such amendment, qualification, supplement, waiver, consent
or departure is to be effective. Any amendments, modifications, supplements, waivers or consents
pursuant to Section 6 or any related sections shall require the written consent of the
Market-Maker.

     (e) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified, return receipt
requested), telex, telecopier, or air courier guaranteeing overnight delivery:

     (i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture;

     (ii) if to the Market-Maker:

Credit Suisse Securities (USA) LLC

1100 Louisiana Street

Houston, TX 77002

Phone: (713) 890-1400

Facsimile: (713) 890-1650

Attention: Phillip Pace

                    Managing Director

and

     (iii) if to the Company and the Guarantors:

6300 Bridge Point Parkway

Building 2, Suite 500

Austin, TX 78730

Phone: (512) 427-3300

Facsimile: (512) 427-3400

Attention: Warren Ludlow

                    General Counsel

With a copy to:

Thompson & Knight LLP

1700 Pacific Avenue, Suite 3300

Dallas, Texas 75201

Facsimile: (214) 969-1751

Attention: Joe Dannenmaier

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     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if
telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

     Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address specified in the Indenture.

     (f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including, without limitation, and without the
need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted
Securities from such Holder.

     (g) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

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

     (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

     (j) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     (k) Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and understandings between
the parties with respect to such subject matter.

25

 

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

	 	 	 	 	 	 	 
	 	 	BRIGHAM EXPLORATION COMPANY, a Delaware

corporation	 	 
	 

	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BRIGHAM, INC., a Nevada corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BRIGHAM OIL & GAS, L.P., a Delaware limited
partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	BRIGHAM, INC.,	 	 
	 

	 	 	 	Its managing general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 

26

 

     The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written:

BANC OF AMERICA SECURITIES LLC

CREDIT SUISSE SECURITIES (USA) LLC

GREENWICH CAPITAL MARKETS, INC.

BNP PARIBAS SECURITIES CORP.

HIBERNIA SOUTH COAST CAPITAL, INC.

NATEXIS BLEICHROEDER, INC.

By: Banc of America Securities LLC

	 	 	 	 	 
	By:

	 	/s/ Lex Maultsby
	 	 
	 

	 	 	 	 
	 

	 	Name: Lex Maultsby	 	 
	 

	 	Title: Managing Director	 	 

27

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