Document:

exv10w4

 

EXHIBIT 10.4

AMENDMENT TO CONSULTING AGREEMENT

      Brigham Oil & Gas, L.P. (the “Company”) and Harold D. Carter
(“Consultant”) hereby amend that certain Consulting Agreement dated May 1,
1997, as previously amended, by and between the Company and Consultant (the
“Consulting Agreement”), as follows:

      Section 6 of the Consulting Agreement is hereby deleted in its entirety
and replaced with the following Section 6:

          6. Term. The term of this Agreement shall commence on the date
hereof and shall continue until terminated by either party by giving
notice of such termination to the other party hereto.

      All of the other terms and provisions of the Consulting Agreement shall
continue in force and effect.

      In witness whereof the Company and Consultant have signed this Amendment
below to evidence their acceptance and agreement to the terms contained herein.

	 	 	 	 	 	 	 
	COMPANY:	 	CONSULTANT:
	 
	 	 	 	 	 	 
	BRIGHAM OIL & GAS, L.P.	 	 	 	 
	By Brigham, Inc.	 	 	 	 
	Its Managing General Partner	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ David T. Brigham
	 	By:
	 	/s/ Harold D. Carter
	

	 	

	 	 	 	

	

	 	David T. Brigham
	 	 	 	Harold D. Carter
	

	 	Executive Vice President of
	 	 	 	Secretary
	

	 	Land & Administrationexv10w15

 

EXHIBIT 10.15

BRIGHAM EXPLORATION COMPANY

1997 DIRECTOR STOCK OPTION PLAN

(as amended on April 9, 2003)

I. PURPOSE

     It is the purpose of the Plan to promote the interests of the Company and
its stockholders by attracting and retaining qualified directors by giving them
the opportunity to acquire a proprietary interest in the Company and an
increased personal interest in its continued success and progress. The Options
granted hereunder shall not be qualified as “incentive stock options” within
the meaning of Section 422(b) of the Code.

II. DEFINITIONS

     As used herein the following terms have the following meanings:

     (a) “Board” means the Board of Directors of the Company.

     (b) “Chairman of the Board” means the director elected to the position of
Chairman of the Board by the Board.

     (c) “Code” means the Internal Revenue Code of 1986, as amended.

     (d) “Common Stock” means the $.01 par value Common Stock of the Company.

     (e) “Company” means Brigham Exploration Company, a Delaware corporation.

     (f) “Effective Date” means March 4, 1997, which shall be the date on which
the Plan shall be effective.

     (g) “Eligible Director” means an individual who (i) is on the Effective
Date, or thereafter becomes, a member of the Board, (ii) is neither an employee
nor an officer of the Company or any direct or indirect majority-owned
subsidiary of the Company and (C) has not elected to decline to participate in
the Plan pursuant to the following sentence. A director otherwise eligible to
participate in the Plan may make an irrevocable, one-time election, by written
notice to the Company within ten days after his or her initial election to the
Board, or, in the case of the directors in office on the Effective Date, within
ten days prior to the Effective Date, to decline to participate in the Plan.
For purposes of the Plan, “employee” shall mean an individual whose wages are
subject to the withholding of federal income tax under Section 3402 of the
Code, and “officer” shall mean an individual elected or appointed by the Board
or the board of directors of the subsidiary, as the case may be, or chosen in
such other manner as may be prescribed in the bylaws of the Company or the
subsidiary, to serve as such.

     (h) “Fair Market Value” of a share of Common Stock means, as of a
particular date, (i) if shares of Common Stock are listed on a national
securities exchange, the mean between the highest and lowest sales price per
share of Common Stock on the consolidated transaction reporting system for the
principal national securities exchange on which shares of Common Stock are
listed on that date, or, if there shall have been no such sale so reported on
that date, on the last preceding date on which such a sale was so reported,
(ii) if shares of Common Stock are not so listed but are quoted on the Nasdaq
National Market, the mean between the highest and lowest sales price per share
of Common Stock reported by the Nasdaq National Market on that date, or, if
there shall have been no such sale so reported on that date, on the last
preceding date on which such a sale was so reported, (iii) if the Common Stock
is not so listed or quoted, the mean between the closing bid and asked price on
that date, or, if there are no quotations available for such date, on the last
preceding date on which such quotations shall be available, as reported by the
Nasdaq National Market, or, if not reported by the Nasdaq National Market, by
the National Quotation Bureau Incorporated or (iv) if shares of Common Stock
are not publicly traded, the most recent value determined in good faith by the
Board for such purpose.

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     (i) “Holder” means an Eligible Director to whom an Option has been granted
under the Plan.

     (j) “Initial Options” means those options granted to each Eligible
Director who becomes a member of the Board automatically on the date of his or
her initial election as a director of the Company.

     (k) “Option” means any option to purchase shares of Common Stock granted
pursuant to the provisions of the Plan, including Initial Options and
Subsequent Options.

     (l) “Plan” means this Brigham Exploration Company 1997 Director Stock
Option Plan.

     (m) “Subsequent Options” means those options granted automatically as of
December 31 of each year to each Eligible Director who is serving the Company
as a director on such date beginning December 31, 1997.

III. ADMINISTRATION

     The Plan shall be administered by the Board. The Board shall have no
authority, discretion or power to select the participants who will receive
Options, to set the number of shares to be covered by any Option, to set the
exercise price of any Option or to set the period within which Options may be
exercised, or to alter any other terms or conditions specified herein, except
in the sense of administering the Plan subject to the express provisions of the
Plan and except in accordance with Section 6.02 hereof. Subject to the
foregoing limitations, the Board shall have authority and power to adopt such
rules and regulations and to take such action as it shall consider necessary or
advisable for the administration of the Plan, and to construe, interpret and
administer the Plan. The decisions of the Board relating to the Plan shall be
final and binding upon the Company, the Holders and all other persons. No
member of the Board shall incur any liability by reason of any action or
determination made in good faith with respect to the Plan or any stock option
agreement entered into pursuant to the Plan.

IV. OPTIONS

     4.01 Participation. Each Eligible Director who does not elect to decline
to participate in the Plan pursuant to paragraph (g) of Article II hereof shall
be granted an Option to purchase Common Stock under the Plan on the terms and
conditions herein described.

     4.02 Terms and Conditions of Options; Stock Option Agreements. Each
Option granted under the Plan shall be evidenced by a written stock option
agreement entered into by the Company and the Holder to whom the Option is
granted, which agreement shall include, incorporate or conform to the following
terms and conditions, and such other terms and conditions not inconsistent
therewith or with the terms and conditions of the Plan as the Board considers
appropriate in each case:

     (a) Option Grant Dates. An Option shall be granted (i) to each Eligible
Director who becomes a member of the Board after the Effective Date
automatically on the date of his or her initial election as a director of the
Company (an “Initial Option”), provided that such person does not elect to
decline to participate in the Plan pursuant to paragraph (g) of Article II
hereof, and (ii) automatically as of December 31 of each year to each Eligible
Director who is serving the Company as a director on such date, beginning
December 31, 1997 (a “Subsequent Option”). The date of grant of an Option
pursuant to the Plan shall be referred to hereinafter as the “Grant Date” of
such Option.

     (b) Number of Shares. Each Initial Option shall entitle the Holder to
purchase, in accordance with the terms of such Option and the Plan, 20,000
shares of Common Stock, subject to adjustment in accordance with Section 5.02
hereof. Each Subsequent Option shall entitle the Holder to purchase, in
accordance with the terms of such Option and the Plan, 10,000 shares of Common
Stock, subject to adjustment in accordance with Section 5.02 hereof. If, on
the Grant Date of any Option, fewer shares of Common Stock remain available for
grant than are necessary to permit the grant of Options to each person entitled
to receive an Option on such date in accordance with the provisions of this
Section 4.02, then (i) first, an Option covering an equal number of whole
shares of Common Stock, up to 20,000 shares,
shall be granted on such date to each Eligible Director who is to receive
an Initial Option and (ii) thereafter, Options shall be granted to the
remaining Eligible Directors then serving covering an equal number of whole
shares of Common Stock

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and all such Options shall cover, in the aggregate, all
remaining shares of Common Stock then available for grant under the Plan (or
such smaller number as may be necessary to permit each such Option to cover an
equal number of whole shares of Common Stock).

     (c) Price. The price at which each share of Common Stock covered by an
Option may be purchased pursuant to the Plan shall be the Fair Market Value of
a share of Common Stock on the Grant Date of the Option.

     (d) Option Period. Each option shall become exercisable in five equal
annual installments on each of the first five anniversaries of such option’s
“Grant Date.” The period within which each Option may be exercised shall
expire on the seventh anniversary of such Grant Date (the “Option Period”),
unless terminated sooner pursuant to Section 4.02(e) hereof.

     (e) Termination of Service, Death, Etc. The following provisions shall
apply with respect to the exercise of an Option granted hereunder in the event
that the Holder thereof ceases to be a director of the Company for the reasons
described in this Section 4.02(e):

          (i) If the directorship of the Holder is terminated within the Option
Period on account of any act of (a) fraud or intentional misrepresentation or
(b) embezzlement, misappropriation or conversion of assets or opportunities of
the Company or any direct or indirect majority-owned subsidiary of the Company,
the Option shall automatically terminate as of the date of such termination;

          (ii) If the Holder dies during the Option Period while such Holder is a
director of the Company (or during the additional three-month period provided
by paragraph (iii) of this Section 4.02(e)), the Option may be exercised, to
the extent that the Holder was entitled to exercise it at the date of the
Holder’s death, within one year after such death (if within the Option Period),
but not thereafter, by the executor or administrator of the estate of the
Holder, or by the person or persons who shall have acquired the Option directly
from the Holder by bequest or inheritance; or

          (iii) If the directorship of the Holder is terminated for any reason
(other than the circumstances specified in paragraphs (i) and (ii) of this
Section 4.02(e)) within the Option Period, including a failure by the
stockholders of the Company to reelect the Holder as a director, the Option may
be exercised, to the extent the Holder was entitled to do so at the date of
termination of the directorship, within three months after such termination (if
within the Option Period), but not thereafter.

     (f) Transferability. An Option granted under the Plan shall not be
transferable by the Holder, otherwise than by will or pursuant to the laws of
descent and distribution or with the consent of the Board, and during the
lifetime of the Holder the Option shall be exercisable only by the Holder or
his or her guardian or legal representative or by transferees of the Holders in
such circumstances as the Board may approve.

     (g) Requirement of Directorship. Except as provided in Section 4.02(e)
hereof, an Option may not be exercised unless the Holder is at the time of
exercise serving as a director of the Company, and, except as provided in
Section 4.02(e) hereof, such Option shall terminate upon termination of the
Holder’s service as a director of the Company.

     (h) Exercise, Payments, Etc. Each Option granted hereunder may be
exercised, in whole or in part, by the Holder thereof at any time or (with
respect to partial exercises) from time to time during the Option Period,
subject to the provisions of the Plan and the stock option agreement evidencing
such Option, and the method for exercising an Option shall be by the personal
delivery to the Secretary of the Company of, or by the sending by United States
registered or certified mail, postage prepaid, addressed to the Company (to the
attention of its Secretary), of, written notice signed by the Holder specifying
the number of shares of Common Stock with respect to which such Option is being
exercised. Such notice shall be accompanied by the full amount of the purchase
price of such shares, in cash and/or by delivery of shares of Common Stock
already owned by the Holder having an aggregate Fair Market Value (determined
as of the date of exercise) equal to the purchase price, including an actual or
deemed multiple series of exchanges of such shares. Any
such notice shall be deemed to have been given on the date of receipt
thereof (in the case of personal delivery as above-stated) or on the date on
which the same was deposited in a regularly maintained receptacle for the
deposit of United States mail, addressed and sent as above-stated. In addition
to the foregoing, promptly after demand by the Company,

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the exercising Holder
shall pay to the Company an amount equal to applicable withholding taxes, if
any, due in connection with such exercise. No shares of Common Stock shall be
issued upon exercise of an Option until full payment therefor and for all
applicable withholding taxes has been made, and a Holder shall have none of the
rights of a shareholder until shares of Common Stock are issued to such Holder.

V. AUTHORIZED COMMON STOCK

     5.01 Common Stock. The total number of shares as to which Options may be
granted pursuant to the Plan shall be 430,000 shares of Common Stock, in the
aggregate, except as such number of shares shall be adjusted from and after the
Effective Date in accordance with the provisions of Section 5.02 hereof. If
any outstanding Option under the Plan shall expire or be terminated for any
reason, the shares of Common Stock allocable to the unexercised portion of such
Option shall again be available for grant under the Plan.

     5.02 Adjustments Upon Changes in Common Stock. In the event the Company
shall effect a split of the Common Stock or a dividend payable in Common Stock,
or in the event the outstanding Common Stock shall be combined into a smaller
number of shares, the maximum number of shares as to which Options may be
granted under the Plan shall be increased or decreased proportionately. In the
event that before delivery by the Company of all the shares of Common Stock in
respect of which any Option has been granted under the Plan, the Company shall
have effected such a split, dividend or combination, the shares still subject
to the Option shall be increased or decreased proportionately and the purchase
price per share shall be increased or decreased proportionately so that the
aggregate purchase price for all the then optioned shares shall remain the same
as immediately prior to such split, dividend or combination.

     In the event of a reclassification of the Common Stock not covered by the
foregoing, or in the event of a liquidation or reorganization, including a
merger, consolidation or sale of assets, the Board shall make such adjustments,
if any, as it may deem appropriate in the number, purchase price and kind of
shares covered by the unexercised portions of Options theretofore granted under
the Plan. The provisions of this Section 5.02 shall only be applicable if, and
only to the extent that, the application thereof does not conflict with any
valid governmental statute, regulation or rule.

VI. GENERAL PROVISIONS

     6.01 Termination of Plan. The Plan shall terminate whenever (whether
before or after the Effective Date) the Board adopts a resolution to that
effect. If not sooner terminated in accordance with the preceding sentence,
the Plan shall wholly cease and expire on the tenth anniversary of the
Effective Date. After termination of the Plan, no Options shall be granted
under the Plan, but the Company shall continue to recognize, and perform its
obligations with respect to, any Options previously granted.

     6.02 Amendment of Plan. The Board may from time to time (whether before,
on or after the Effective Date) amend, modify or suspend the Plan.
Nevertheless, (a) no such amendment, modification or suspension shall impair
any Options theretofore granted under the Plan or deprive any Holder of any
shares of Common Stock which such Holder might have acquired through or as a
result of the Plan, and (b) after the stockholders of the Company have approved
and adopted the Plan in accordance with Section 6.04 hereof, no such amendment
or modification shall be made without the approval of the holders of the
outstanding shares of capital stock of the Company entitled to vote in the
election of directors generally where such amendment or modification would (i)
increase the total number of shares of Common Stock as to which Options may be
granted under the Plan or decrease the exercise price at which Options may be
granted under the Plan (other than as provided in Section 5.02 hereof), (ii)
materially alter the class of persons eligible to be granted Options under the
Plan, (iii) materially increase the benefits accruing to Holders under the Plan
or (iv) extend the term of the Plan or the Option Period specified in Section
4.02(d) hereof.

     Notwithstanding the foregoing, the provisions of the Plan relating to (a)
the number of shares of Common Stock covered by, and the exercise price of,
Options granted under the Plan, (b) the timing of grants of Options under the
Plan and (c) the class of persons eligible to be granted Options under the Plan
shall not be amended more than once every six months, other than to comport
with changes in the Code, the Employee Retirement Income Security Act of 1974,
as amended, or the rules thereunder.

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     6.03 Treatment of Proceeds. Proceeds from the sale of Common Stock
pursuant to Options granted under the Plan shall constitute general funds of
the Company.

     6.04 Effectiveness. The Plan shall become effective as of the Effective
Date, subject to and upon the receipt of shareholder approval by the
affirmative votes of the holders of a majority of the shares of Common Stock
present, or represented, and entitled to vote at a meeting of stockholders duly
held in accordance with the applicable laws of the State of Delaware.

     6.05 Section Headings. The section headings included herein are only for
convenience, and they shall have no effect on the interpretation of the Plan.

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