Document:

THIS WARRANT AGREEMENT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THE WARRANTS
HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH
ACT, THE RULES AND REGULATIONS PROMULGATED THEREUNDER, ANY SUCH STATE SECURITIES
LAWS OR THE PROVISIONS OF THIS WARRANT AGREEMENT.

                                WARRANT AGREEMENT

                                     for the

                            Purchase of Common Stock

                                 By and Between

                           BRIGHAM EXPLORATION COMPANY

                                       and

                               SHELL CAPITAL INC.

                                   Dated as of

                                October 31, 2000

<PAGE>

TABLE OF CONTENTS

Page

1.       DEFINITIONS........................................................1

2.       ISSUANCE AND EXERCISE OF WARRANTS..................................6

         2.1      ISSUANCE OF WARRANTS......................................6

         2.2      MANNER OF EXERCISE........................................6

         2.3      PAYMENT OF TAXES..........................................8

         2.4      FRACTIONAL SHARES.........................................8

         2.5      CONTINUED VALIDITY........................................8

         2.6      CONDITIONS TO EXERCISE....................................8

3.       TRANSFERS, DIVISION AND COMBINATION................................8

         3.1      TRANSFER..................................................8

         3.2      DIVISION AND COMBINATION..................................9

         3.3      EXPENSES..................................................9

         3.4      MAINTENANCE OF BOOKS......................................9

4.       ADJUSTMENTS........................................................9

         4.1      STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS............9

         4.2      CERTAIN OTHER DISTRIBUTIONS..............................10

         4.3      ISSUANCE OF ADDITIONAL SHARES OF STOCK...................11

         4.4      ISSUANCE OF WARRANTS OR OTHER RIGHTS.....................11

         4.5      ISSUANCE OF CONVERTIBLE SECURITIES.......................12

         4.6      SUPERSEDING ADJUSTMENT...................................13

         4.7      OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS
                  UNDER THIS SECTION.......................................13

         4.8      REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION
                  OR DISPOSITION OF ASSETS.................................14

5.       NOTICES TO WARRANT HOLDERS........................................15

         5.1      NOTICE OF ADJUSTMENTS....................................15

         5.2      NOTICE OF CERTAIN CORPORATE ACTION.......................15

6.       REPRESENTATIONS AND WARRANTIES....................................15

7.       CERTAIN COVENANTS.................................................17

         7.1      NO IMPAIRMENT............................................17

         7.2      RESERVATION  AND  AUTHORIZATION  OF COMMON STOCK;
                  REGISTRATION  WITH, OR APPROVAL OF, ANY  GOVERNMENTAL
                  AUTHORITY................................................17

<PAGE>

8.       TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS................18

9.       RESTRICTIONS ON TRANSFERABILITY...................................18

         9.1      RESTRICTIVE LEGEND.......................................18

         9.2      NOTICE OF PROPOSED TRANSFERS; REQUESTS FOR REGISTRATION..19

         9.3      INCIDENTAL REGISTRATION..................................19

         9.4      REGISTRATION PROCEDURES..................................20

         9.5      EXPENSES.................................................21

         9.6      INDEMNIFICATION AND CONTRIBUTION.........................21

         9.7      TERMINATION OF RESTRICTIONS..............................24

         9.8      LISTING ON SECURITIES EXCHANGE...........................24

10.      SUPPLYING INFORMATION.............................................25

11.      LOSS OR MUTILATION................................................25

12.      OFFICE OF THE ISSUER..............................................25

13.      APPRAISAL.........................................................25

14.      LIMITATION OF LIABILITY; NO RIGHTS AS STOCKHOLDER.................25

15.      MISCELLANEOUS.....................................................26

         15.1     NON-WAIVER AND EXPENSES..................................26

         15.2     NOTICE GENERALLY.........................................26

         15.3     INDEMNIFICATION..........................................27

         15.4     REMEDIES.................................................27

         15.5     SUCCESSORS AND ASSIGNS...................................27

         15.6     COMPLETE AGREEMENT; AMENDMENT............................27

         15.7     SEVERABILITY.............................................28

         15.8     HEADINGS.................................................28

         15.9     GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE.........28

         15.10    CONSENT TO JURISDICTION AND VENUE........................28

         15.11    COUNTERPARTS:............................................29

Exhibits:

Exhibit A  -Form of Warrant Certificate..............................Exh. A-1

SCHEDULES:

Schedule A   -Capital Stock of the Issuer, Including Shares Subject to
               Outstanding Warrants, Options, Conversion Rights, Etc....Sch. A-1

<PAGE>

THIS WARRANT AGREEMENT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THE WARRANTS
HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH
ACT, THE RULES AND REGULATIONS PROMULGATED THEREUNDER, ANY SUCH STATE SECURITIES
LAWS OR THE PROVISIONS OF THIS WARRANT AGREEMENT.

                                WARRANT AGREEMENT

THIS WARRANT AGREEMENT, dated as of October 31, 2000 (this "AGREEMENT"), is
entered into by and between Brigham Exploration Company, a Delaware corporation
("ISSUER"), and Shell Capital Inc. a Delaware corporation (the "WARRANT HOLDER"
or "SCI").

                              W I T N E S S E T H:

                  WHEREAS, Brigham Oil & Gas, L.P., a limited partnership formed
under the laws of the State of Delaware (the "BORROWER"), the financial
institutions party to the Credit Agreement referred to below (each a "LENDER"
and collectively, the "LENDERS"), and SCI, as agent for Lenders under the Credit
Agreement (in such capacity, the "AGENT"), are parties to that certain
Subordinated Credit Agreement, of even date herewith (as so amended and
restated, the "CREDIT AGREEMENT"); and

                  WHEREAS,    the   Issuer   has    guaranteed   the
obligations of the Borrower to the Lenders and the Agent;

                  WHEREAS, as a consequence of the contractual relationships
between the Borrower and the Lenders, the Issuer has and will continue to
receive substantial benefits from the Lenders;

                  WHEREAS, in order to induce the Lenders to enter into the
Credit Agreement, the Issuer has agreed to execute and deliver this Agreement
and to issue to SCI the warrants herein described;

                  NOW, THEREFORE, in consideration of the premises and mutual
covenants contained herein, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby stipulate and agree as follows:

1.       DEFINITIONS

         Capitalized terms not otherwise defined herein shall have the meaning
         set forth in the Credit Agreement. As used in this Agreement, the
         following terms have the respective meanings set forth below:

         "ADDITIONAL SHARES OF COMMON STOCK" shall mean all shares of Common
         Stock issued by the Issuer after the Closing Date, other than Warrant
         Stock or Common Stock issued pursuant to the Equity Conversion
         Agreement or pursuant to the Other Warrants.

                                       1
<PAGE>

         "APPRAISED VALUE" shall mean, in respect of any share of Common Stock
         on any date herein specified, the fair saleable value of such share of
         Common Stock (determined without giving effect to the discount for (i)
         a minority interest or (ii) any lack of liquidity of the Common Stock
         or to the fact that the Issuer may have no class of equity registered
         under the Exchange Act) as of the last day of the most recent fiscal
         month to end prior to such date specified, based on the value of the
         Issuer, as determined by an investment banking firm (selected pursuant
         to Section 13 of this Agreement) in accordance with such firm's
         customary practices, divided by the number of Outstanding shares of
         Common Stock, after giving pro forma effect to the exercise or
         conversion of all exercisable or Convertible Securities (including the
         Warrants) for Common Stock and the payment of the exercise or
         conversion price therefor.

         "BOOK VALUE" shall mean, in respect of any share of Common Stock on any
         date herein specified, the consolidated book value of the Issuer as of
         the last day of any month immediately preceding such date, divided by
         the number of Outstanding shares of Common Stock, after giving pro
         forma effect to the exercise or conversion of all exercisable or
         Convertible Securities (including the Warrants) for Common Stock and
         the payment of the exercise or conversion price therefor, as determined
         in accordance with GAAP by any firm of independent certified public
         accountants of recognized national standing selected by the Issuer and
         reasonably acceptable to the Required Holders.

         "BUSINESS DAY" shall mean each day which is not a day on which banks in
         Houston, Texas are generally authorized or obligated by law or
         executive order to close.

         "CASHLESS CONVERSION" shall have the meaning set forth in Section
         2.2(b)(ii) hereof.

         "CASHLESS CONVERSION NOTICE" shall have the meaning set forth in
         Section 2.2(b)(ii) hereof.

         "CLOSING DATE" shall mean the date hereof.

         "COMMISSION" shall mean the Securities and Exchange Commission, or any
         other federal agency then administering the Securities Act and other
         federal securities laws.

         "COMMON STOCK" shall mean the common stock, $0.01 par value per share,
         of the Issuer, as constituted on the Closing Date, and any capital
         stock into which such Common Stock may thereafter be changed, and shall
         also include (i) capital stock of the Issuer of any other class
         (regardless of how denominated) issued to the holders of shares of
         Common Stock upon any reclassification thereof which is also not
         preferred as to dividends or assets over any other class of stock of
         the Issuer and which is not subject to redemption and (ii) shares of
         common stock of any successor or acquiring corporation (as defined in
         Section 4.8 of this Agreement) received by or distributed to the
         holders of Common Stock of the Issuer in the circumstances contemplated
         by Section 4.8 of this Agreement.

         "CONVERTIBLE SECURITIES" shall mean evidences of indebtedness, shares
         of stock or other securities which are convertible into or
         exchangeable, with or without payment of

                                       2
<PAGE>

         additional consideration in cash or property, for Additional Shares of
         Common Stock, either immediately or upon the occurrence of a specified
         date or a specified event.

         "CURRENT MARKET PRICE" shall mean, in respect of any share of Common
         Stock on any date herein specified, (a) if there shall then be a public
         market for the Common Stock, the average Price per share for the 20
         trading days preceding such date; or (b) at any time that there is no
         public market for the Common Stock, the fair market value per share of
         Common Stock on such date as determined reasonably and in good faith by
         the board of directors of the Issuer (determined without giving effect
         to any discount for a minority interest, any restrictions on
         transferability or any lack of liquidity of the Common Stock or to the
         fact that the Issuer has no class of equity registered under the
         Exchange Act), such fair market value to be determined by reference to
         the cash price that would be paid between a fully informed buyer and
         seller under no compulsion to buy or sell, provided that (i) if Current
         Market Price is being determined in connection with an issuance of
         shares of Common Stock, solely to one or more Affiliates of the Issuer,
         then if so requested by the Required Holders, Current Market Price
         shall be the Appraised Value; and (ii) Current Market Price shall never
         be less than Book Value.

         "CURRENT WARRANT PRICE" shall mean, in respect of a share of Common
         Stock at any date herein specified, three dollars ($3.00) per share of
         Common Stock, subject to adjustment from time to time as provided in
         this Agreement.

         "DEMANDING SECURITY HOLDER" shall have the meaning set forth in Section
         9.3.

         "EQUITY CONVERSION AGREEMENT" shall mean that certain Equity Conversion
         Agreement dated as of February 17, 2000 among the Issuer, the Borrower
         and SCI.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
         amended, or any similar federal statute, and the rules and regulations
         of the Commission thereunder, all as the same shall be in effect from
         time to time.

         "EXERCISE PERIOD" shall mean the period during which the Warrants are
         exercisable pursuant to Section 2.2.

         "EXPIRATION DATE" shall mean October 31, 2007.

         "GAAP" shall mean generally accepted accounting principles in the
         United States of America, as from time to time in effect.

         "MATERIAL ADVERSE EFFECT" shall mean, as to the Issuer, any material
         adverse effect on the business, assets, operations, prospects or
         financial or other condition of the Issuer and its Subsidiaries, taken
         as a whole.

         "NASD" shall mean the National Association of Securities Dealers, Inc.,
         or any successor thereto.

         "OTHER PROPERTY" shall have the meaning set forth in Section 4.8.

                                       3
<PAGE>

         "OTHER WARRANTS" shall mean the warrants to purchase Common Stock
         originally represented by a Warrant Certificate dated February 17, 2000
         issued to SCI.

         "OUTSTANDING" shall mean, when used with reference to Common Stock, at
         any date as of which the number of shares thereof is to be determined,
         all issued shares of Common Stock, except shares then owned or held by
         or for the account of the Issuer or any Subsidiary, and shall include
         all shares issuable in respect of outstanding scrip or any certificates
         representing fractional interests in shares of Common Stock.

         "PERMITTED ISSUANCES" shall mean (i) the issuance of shares of Common
         Stock upon exercise of the Warrants or pursuant to the Equity
         Conversion Agreement or upon the exercise of the Other Warrants, (ii)
         the issuance of shares relating to any benefit plan, stock option plan
         or any other compensation plan offered solely to the Issuer's officers,
         directors and/or employees, (iii) the issuance of shares of Common
         Stock as consideration for the purchase of any property, stock,
         business or securities from any Person who is not an Affiliate of the
         Issuer or any Subsidiary immediately prior to such transaction whether
         such shares are issued directly by the Issuer or by a Subsidiary of the
         Issuer in connection with any merger, consolidation or other business
         combination, (iv) if there shall then be a public market for the Common
         Stock, the issuance of shares of Common Stock upon receipt by the
         Issuer of no less than the Current Market Price therefor as described
         in clause (a) of the definition of "Current Market Price" and (v) if
         there shall then be no public market for the Common Stock, the issuance
         of shares of Common Stock, warrants or Convertible Securities on terms
         that are at least as favorable to the Issuer as terms that could be
         obtained in an arm's length transaction with third Persons not
         Affiliates of the Issuer or any Subsidiary and for consideration equal
         to the fair value of such shares as determined in good faith by a
         majority of disinterested members of the board of directors of the
         Issuer.

         "PERSON(S)" shall mean any individual, sole proprietorship,
         partnership, joint venture, trust, limited liability company,
         incorporated organization, association, corporation, institution,
         public benefit corporation, entity or government (whether federal,
         state, county, city, municipal or otherwise, including, without
         limitation, any instrumentality, division, agency, body or department
         thereof).

         "PRICE" means the average of the "high" and "low" prices as reported in
         THE WALL STREET JOURNAL'S listing for such day (corrected for obvious
         typographical errors) or if such shares are not reported in such
         listing, the average of the reported "high" and "low" sales prices on
         the largest national securities exchange (based on the aggregate dollar
         value of securities listed) on which such shares are listed or traded,
         or if such shares are not listed or traded on any national securities
         exchange, then the average of the reported "high" and "low" sales
         prices for such shares in the over-the-counter market, as reported on
         the National Association of Securities Dealers Automated Quotations
         System, or, if such prices shall not be reported thereon, the average
         of the closing bid and asked prices so reported, or, if such prices
         shall not be reported, then the average of the closing bid and asked
         prices reported by the National Quotations Bureau Incorporated. The
         "average" Price per share for any period shall be determined by
         dividing the sum of the Prices

                                       4
<PAGE>

         determined for the individual trading days in such period by the number
         of trading days in such period.

         "REGISTRABLE SECURITIES" shall mean, at any particular time and as to
         each Warrant Holder, (i) all shares of common stock issuable upon the
         exercise of such Warrant Holder's Warrants and (ii) all of such Warrant
         Holder's issued and outstanding Warrant Stock.

         "REGISTRATION EXPENSES" shall have the meaning set forth in Section 9.5
         of this Agreement.

         "REGISTRATION STATEMENT" shall have the meaning set forth in Section
         9.4 of this Agreement.

         "REQUIRED HOLDERS" shall mean the Warrant Holders of Warrants
         exercisable for an amount exceeding 50% of the aggregate number of
         shares of Common Stock then purchasable upon exercise of all Warrants,
         whether or not exercisable.

         "REQUIREMENT OF LAW" shall mean, as to any Person, any requirement
         contained in any certificate of incorporation, bylaws, or other
         organizational or governing documents of such Person, and any law,
         treaty, rule or regulation or determination of an arbitrator or a court
         or other governmental authority, in each case applicable to or binding
         such Person or any of the property or to which such Person or any of
         its property is subject.

         "RESTRICTED COMMON STOCK" shall mean shares of Common Stock which are,
         or which upon their issuance on the exercise of a Warrant would be,
         evidenced by a certificate bearing the restrictive legend set forth in
         Section 9.1 of this Agreement.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, or
         any similar federal statute, and the rules and regulations of the
         Commission thereunder, all as the same shall be in effect at the time.

         "SUBSIDIARY" of a Person means (i) a corporation, a majority of whose
         stock with voting power, under ordinary circumstances, to elect
         directors is at the time of determination, directly or indirectly,
         owned by such Person or by one or more Subsidiaries of such Person, or
         (ii) any other entity (other than a corporation) in which such Person
         or one or more Subsidiaries of such Person, directly or indirectly, at
         the date of determination thereof has at least a majority ownership
         interest.

         "TRANSFER NOTICE" shall have the meaning set forth in Section 9.2 of
         this Agreement.

         "WARRANT CERTIFICATE" shall mean a certificate evidencing one or more
         Warrants, substantially in the form of Exhibit A hereto, with such
         changes therein as may be required to reflect any adjustments made
         pursuant to Section 4 of this Agreement.

         "WARRANT HOLDER" shall mean such Person in whose name the Warrants are
         registered on the books of the Issuer maintained for such purpose or
         each Person holding any Warrant Stock. As of the Closing Date, the SCI
         is the Warrant Holder hereof.

                                       5
<PAGE>

         "WARRANT PRICE" shall mean, for any exercise of Warrants pursuant to
         Section 2.2 of this Agreement, an amount equal to (i) the number of
         shares of Common Stock being purchased upon such exercise multiplied by
         (ii) the Current Warrant Price, for each share of Common Stock as of
         the date of such exercise.

         "WARRANT STOCK" shall mean the shares of Common Stock purchased by the
         Warrant Holders upon the exercise thereof.

         "WARRANTS" shall mean the Warrants issued pursuant to this Agreement,
         and all Warrants issued upon transfer, division or combination of, or
         in substitution for, such Warrants. All Warrants shall at all times be
         identical as to terms and conditions and date, except as to the number
         of shares of Common Stock for which they may be exercised and the
         Current Warrant Price. A Warrant shall entitle the record holder
         thereof to purchase from the Issuer one share of Common Stock (subject
         to adjustment as provided in Section 4 of this Agreement).

2.       ISSUANCE AND EXERCISE OF WARRANTS

2.1      ISSUANCE OF WARRANTS. The Issuer hereby agrees to issue to the Warrant
         Holder on the Closing Date ONE MILLION TWO HUNDRED FIFTY THOUSAND
         (1,250,000) Warrants. On the Closing Date, the Issuer shall deliver to
         the Warrant Holder a Warrant Certificate evidencing the Warrants issued
         to the Warrant Holder.

2.2      MANNER OF EXERCISE.

         (a)      The Warrant Holder may, from and after the Closing Date until
                  11:59 p.m., Central Standard Time on the Expiration Date,
                  exercise the Warrants evidenced by a Warrant Certificate, on
                  any Business Day, for all or part of the number of shares of
                  Common Stock purchasable thereunder.

         (b)      In order to exercise the Warrants, in whole or in part, the
                  Warrant Holder shall either

                  (i)      deliver to the Issuer at its principal office at 6300
                           Bridge Point Parkway, Building 2, Suite 500, Austin,
                           Texas 78730, Attention: Chief Financial Officer, or
                           at the office or agency designated by the Issuer
                           pursuant to Section 12 of this Agreement (the
                           "PRINCIPAL OFFICE"), (x) ----------------- a written
                           notice duly executed by the Warrant Holder or its
                           agent or attorney, substantially in the form of the
                           form of election to purchase appearing at the end of
                           the Warrant Certificate as Exhibit A thereto, of such
                           Warrant Holder's election to exercise the Warrants,
                           which notice shall specify the number of shares of
                           Common Stock to be purchased, (y) payment of the
                           Warrant Price in the manner provided below, and (z)
                           the Warrant Certificate or Warrant Certificates
                           evidencing the Warrants. Payment of the Warrant Price
                           shall be made in cash in an amount equal to the
                           Warrant Price; or

                  (ii)     deliver to the Issuer on any Business Day at the
                           Principal Office (x) a Cashless Conversion Notice in
                           substantially the form appearing at the end

                                       6
<PAGE>

                           of the Warrant Certificate as Exhibit B thereto (the
                           "Cashless Conversion Notice"), duly executed by the
                           Warrant Holder and setting forth such Warrant
                           Holder's election to receive the number of shares of
                           Common Stock specified in the Cashless Conversion
                           Notice ("Cashless Conversion") and (y) the Warrant
                           Certificate or Warrant Certificates evidencing the
                           Warrants. Such presentation and surrender shall be
                           deemed a waiver of the Warrant Holder's obligation to
                           pay all or any portion (as the case may be) of the
                           Warrant Price in connection with such Cashless
                           Conversion. In the event of a Cashless Conversion,
                           the Issuer shall deliver to the Warrant Holder
                           (without payment by the Warrant Holder of any Warrant
                           Price), in respect of the Warrants being exercised,
                           that number of shares of Common Stock equal to: the
                           number of shares of Common Stock intowhich such
                           Warrants would have been converted if exercised under
                           clause (b)(1) above multiplied by a fraction, (x) the
                           numerator of which shall be the Current Market Price
                           on the date of such exercise less the Current Warrant
                           Price on the date of such exercise and (y) the
                           denominator of which shall be the Current Market
                           Price on the date of such exercise. The Warrant
                           Holder may exercise its Cashless Conversion rights,
                           at any time or from time to time, prior to the
                           Expiration Date.

                  Upon receipt of the items described above required for
                  exercise of the Warrants, the Issuer shall, as promptly as
                  practicable, and in any event within three (3) Business Days
                  thereafter, execute or cause to be executed and deliver or
                  cause to be delivered to such Warrant Holder a certificate or
                  certificates representing the aggregate number of full shares
                  of Common Stock issuable upon such exercise, together with
                  cash in lieu of any fraction of a share, as hereinafter
                  provided. The stock certificate or certificates so delivered
                  shall be, to the extent possible, in such denomination or
                  denominations as such Warrant Holder shall request in the
                  notice and shall be registered in the name of the Warrant
                  Holder or, subject to Section 9 of this Agreement, such other
                  name as shall be designated in the notice. The Warrants shall
                  be deemed to have been exercised and such certificate or
                  certificates shall be deemed to have been issued, and such
                  Warrant Holder or any other Person so designated to be named
                  therein shall be deemed to have become a holder of record of
                  such shares for all purposes, as of the date the notice,
                  together with payment of the Warrant Price (if applicable) and
                  the Warrant Certificate or Warrant Certificates, are received
                  by the Issuer as described above and all taxes required to be
                  paid by such Warrant Holder, if any, pursuant to Section 2.3
                  of this Agreement prior to the issuance of such shares have
                  been paid. If the Warrants evidenced by a Warrant Certificate
                  shall have been exercised, the Issuer shall, at the time of
                  delivery of the certificate or certificates representing the
                  Warrant Stock, deliver to the Warrant Holder a new Warrant
                  Certificate evidencing the rights of the Warrant Holder to
                  purchase the unpurchased shares of Common Stock represented by
                  the old Warrant Certificate, which new Warrant Certificate
                  shall in all other respects be identical to the old Warrant
                  Certificate.

                                       7
<PAGE>

2.3      PAYMENT OF TAXES. The Issuer shall pay all expenses in connection with,
         and all transfer taxes and other governmental charges that may be
         imposed with respect to, the issuance or delivery of Warrant Stock. The
         Issuer shall not be required, however, to pay any tax or other charge
         imposed in connection with any transfer involved in the issue of any
         certificate for shares of Warrant Stock issuable upon exercise of
         Warrants in any name other than that of Warrant Holder, and in such
         case the Issuer shall not be required to issue or deliver any stock
         certificate until such tax or other charge has been paid or it has been
         established to the satisfaction of the Issuer that no such tax or other
         charge is due.

2.4      FRACTIONAL SHARES. 2.5 The Issuer shall not be required to issue a
         fractional share of Common Stock upon the exercise of Warrants as
         provided in Section 2(b)(i) and (ii). As to any fraction of a share
         which the Warrant Holder would otherwise be entitled to purchase upon
         such exercise, the Issuer shall pay a cash adjustment in respect of
         such fraction in an amount equal to the same fraction of the Current
         Market Price per share of Common Stock on the date of exercise. If the
         determination of Current Market Price for purposes of this Section 2.4
         would otherwise require an appraisal to be made by an investment
         banking firm, then Current Market Price for purposes of this Section
         2.4 only shall mean Book Value per share of Common Stock on the date of
         exercise, unless a determination of Appraised Value shall have been
         made within six months prior to such date in which case such Appraised
         Value shall be utilized for the purposes of determining Current Market
         Price.

2.6      CONTINUED VALIDITY. A holder of Warrant Stock (other than a holder who
         acquires such shares after the same have been publicly sold pursuant to
         a Registration Statement under the Securities Act) shall continue to be
         entitled with respect to such shares to all rights to which it would
         have been entitled as a holder of Warrant Stock under Sections 9, 10
         and 15 of this Agreement. The Issuer will, at the time of each exercise
         of Warrants or upon the request of the holder of Warrant Stock issued
         upon the exercise thereof, acknowledge in writing, in form reasonably
         satisfactory to such holder of Warrant Stock, its continuing obligation
         to afford to such holder of Warrant Stock all such rights; provided,
         however, that if such holder of Warrant Stock shall fail to make any
         such request, such failure shall not affect the continuing obligation
         of the Issuer to afford to such holder of Warrant Stock all such
         rights.

3.       TRANSFERS, DIVISION AND COMBINATION

3.1      TRANSFER. Subject to compliance with Section 9 of this Agreement,
         transfer of Warrants, in whole or in part, shall be registered on the
         books of the Issuer to be maintained for such purposes, upon surrender
         of the Warrant Certificate representing such Warrants at the principal
         office of the Issuer referred to in Section 2.2 of this Agreement or
         the office or agency designated by the Issuer pursuant to Section 12 of
         this Agreement, together with a written assignment substantially in the
         form of Exhibit C to the Warrant Certificate and a written agreement,
         in form reasonably satisfactory to the Issuer, setting forth the new
         Warrant Holder's agreement to be bound by all of the terms of this
         Agreement each duly executed by the Warrant Holder or its agent or
         attorney, and funds sufficient to pay any transfer taxes payable by
         such Warrant Holder upon the making of such transfer.

                                       8
<PAGE>

         Upon such surrender and, if required, such payment, the Issuer shall,
         subject to Section 9 of this Agreement, execute and deliver a new
         Warrant Certificate or Warrant Certificates in the name of the assignee
         or assignees and in the denomination specified in such instrument of
         assignment, and shall issue to the assignor a new Warrant Certificate
         or Warrant Certificates evidencing the portion of the old Warrant
         Certificate not so assigned, and the old Warrant Certificate shall
         promptly be canceled. A Warrant, if properly assigned in compliance
         with Section 9 of this Agreement, may be exercised by a new Warrant
         Holder for the purchase of shares of Warrant Stock without having a new
         Warrant Certificate or new Warrant Certificates issued.

3.2      DIVISION AND COMBINATION. Subject to the provisions of Section 9 of
         this Agreement, any Warrant Certificate may be divided or combined with
         other Warrant Certificates upon presentation thereof at the aforesaid
         office or agency of the Issuer, together with a written notice
         specifying the names and denominations in which new Warrant
         Certificates are to be issued, signed by a Warrant Holder or its agent
         or attorney. Subject to compliance with Section 3.1 of this Agreement
         as to any transfer which may be involved in such division or
         combination, the Issuer shall execute and deliver a new Warrant
         Certificate or Warrant Certificates in exchange for the Warrant
         Certificate or Warrant Certificates to be divided or combined in
         accordance with such notice.

3.3      EXPENSES. The Issuer shall prepare, issue and deliver at its own
         expense (other than transfer taxes) the new Warrant Certificate or
         Warrant Certificates provided for under this Section 3.

3.4      MAINTENANCE OF BOOKS. The Issuer agrees to maintain, at its aforesaid
         office or agency, books for the registration of, and the registration
         of transfer of, the Warrants.

4.       ADJUSTMENTS

         The number of shares of Warrant Stock for which Warrants are
         exercisable, and the price at which such shares may be purchased upon
         exercise of Warrants, shall be subject to adjustment from time to time
         as set forth in this Section 4. The Issuer shall give each Warrant
         Holder notice of any event described below which requires an adjustment
         pursuant to this Section 4 within three (3) Business Days after such
         event.

4.1      Stock Dividends, Subdivisions and Combinations. If at any time the
         Issuer shall:

         (a)      take a record of the holders of its Common Stock for the
                  purpose of entitling them to receive a dividend payable in, or
                  other distribution of, Additional Shares of Common Stock,

         (b)      subdivide its outstanding shares of Common Stock into a larger
                  number of shares of Common Stock, or

         (c)      combine its outstanding shares of Common Stock into a smaller
                  number of shares of Common Stock,

                                       9
<PAGE>

                  then (i) the number of shares of Common Stock for which a
                  Warrant is exercisable immediately after the occurrence of any
                  such event shall be adjusted to equal the number of shares of
                  Common Stock which a record holder of the same number of
                  shares of Common Stock for which a Warrant is exercisable
                  immediately prior to the occurrence of such event would own or
                  be entitled to receive after the happening of such event, and
                  (ii) the Current Warrant Price shall be adjusted to equal the
                  Current Warrant Price multiplied by a fraction, the numerator
                  of which shall be the number of shares of Common Stock for
                  which a Warrant is exercisable immediately prior to the
                  adjustment and the denominator of which shall be the number of
                  shares for which a Warrant is exercisable immediately after
                  such adjustment.

4.2      CERTAIN OTHER DISTRIBUTIONS. If at any time the Issuer shall take a
         record of the holders of its Common Stock for the purpose of entitling
         them to receive any dividend or other distribution of:

         (a)      cash;

         (b)      any evidences of its indebtedness (other than Convertible
                  Securities), any shares of its stock (other than Additional
                  Shares of Common Stock or Convertible Securities) or any other
                  securities or property of any nature whatsoever (other than
                  cash); or

         (c)      any warrants or other rights to subscribe for or purchase any
                  evidences of its indebtedness (other than Convertible
                  Securities), any shares of its stock (other than Additional
                  Shares of Common Stock or Convertible Securities) or any other
                  securities or property of any nature whatsoever;

                  then (i) the number of shares of Common Stock for which a
                  Warrant is exercisable shall be adjusted to equal the product
                  obtained by multiplying the number of shares of Common Stock
                  for which a Warrant is exercisable immediately prior to such
                  adjustment by a fraction (A) the numerator of which shall be
                  the Current Market Price per share of Common Stock at the date
                  of taking such record and (B) the denominator of which shall
                  be such Current Market Price per share of Common Stock, minus
                  the amount allocable to one share of Common Stock of any such
                  cash so distributable and of the fair value (as determined
                  reasonably and in good faith by the board of directors of the
                  Issuer) of any and all such evidences of indebtedness, shares
                  of stock, other securities or property or warrants or other
                  subscription or purchase rights so distributable, and (ii) the
                  Current Warrant Price shall be adjusted to equal (A) the
                  Current Warrant Price multiplied by the number of shares of
                  Common Stock for which a Warrant is exercisable immediately
                  prior to the adjustment divided by (B) the number of shares
                  for which a Warrant is exercisable immediately after such
                  adjustment. A reclassification of the Common Stock (other than
                  a change in par value, or from par value to no par value or
                  from no par value to par value) into shares of Common Stock
                  and shares of any other class of stock shall be deemed a
                  distribution by the Issuer to the holders of its Common Stock
                  of such shares of

                                       10
<PAGE>

                  such other class of stock within the meaning of this Section
                  4.2 and, if the Outstanding shares of Common Stock shall be
                  changed into a larger or smaller number of shares of Common
                  Stock as a part of such reclassification, such change shall be
                  deemed a subdivision or combination, as the case may be, of
                  the Outstanding shares of Common Stock within the meaning of
                  Section 4.1 of this Agreement.

4.3      ISSUANCE OF ADDITIONAL SHARES OF STOCK.

         (a)      If at any time the Issuer shall (except as hereinafter
                  provided) issue or sell any Additional Shares of Common Stock,
                  other than Permitted Issuances, for consideration in an amount
                  per Additional Share of Common Stock less than the Current
                  Market Price, then the Current Warrant Price shall be adjusted
                  by multiplying the Current Warrant Price by a fraction, the
                  numerator of which shall be (A) an amount equal to the sum of
                  (X) the number of shares of Common Stock Outstanding
                  immediately prior to such issuance or sale multiplied by the
                  Current Market Price immediately prior to the first to occur
                  of (i) board action by the Issuer authorizing such action or
                  (ii) the public announcement of an intent to take such action,
                  plus (Y) the consideration, if any, received by the Issuer
                  upon such issuance or sale, and the denominator of which shall
                  be (B) the total number of shares of Common Stock Outstanding
                  immediately after such issuance or sale multiplied by the
                  Current Market Price as determined in clause (A) above.

         (b)      The provisions of Section 4.3(a) of this Agreement shall not
                  apply to any issuance of Additional Shares of Common Stock for
                  which an adjustment is provided under Sections 4.1 or 4.2 of
                  this Agreement. No adjustment of the number of shares of
                  Common Stock for which a Warrant shall be exercisable shall be
                  made under Section 4.3(a) of this Agreement upon the issuance
                  of any Additional Shares of Common Stock which are issued
                  pursuant to the exercise of any warrants or other subscription
                  or purchase rights or pursuant to the exercise of any
                  conversion or exchange rights in any Convertible Securities
                  (i) if any such adjustment shall previously have been made
                  upon the issuance of such warrants or other rights or upon the
                  issuance of such Convertible Securities (or upon the issuance
                  of any such warrants or other rights) pursuant to Section 4.4
                  or Section 4.5 of this Agreement, (ii) if no adjustment was
                  required pursuant to such sections upon the issuance of such
                  Convertible Securities, warrants or other rights or (iii) in
                  the event the issuance of such Convertible Securities,
                  warrants or other rights predates or is of the same date as
                  this Agreement, if no adjustment would have been required
                  pursuant to such sections upon such issuance had this
                  Agreement been in effect.

4.4      ISSUANCE OF WARRANTS OR OTHER RIGHTS. If at any time the Issuer shall
         take a record of the holders of its Common Stock for the purpose of
         entitling them to receive a distribution of, or shall in any manner
         (whether directly or by assumption in a merger in which the Issuer is
         the surviving corporation) issue or sell, any warrants or other rights
         to subscribe for or purchase any Additional Shares of Common Stock or
         any Convertible Securities, other than Permitted Issuances, whether or
         not the rights to exchange or convert thereunder are

                                       11
<PAGE>

         immediately exercisable, and if the price per share for which Common
         Stock is issuable upon the exercise of such warrants or other rights or
         upon conversion or exchange of such Convertible Securities shall be
         less than the Current Market Price in effect immediately prior to the
         time of such distribution, issue or sale, then the Current Warrant
         Price shall be adjusted as provided in Section 4.3(a) of this Agreement
         on the basis that (A) the maximum number of Additional Shares of Common
         Stock issuable pursuant to all such warrants or other rights or
         necessary to effect the conversion or exchange of all such Convertible
         Securities shall be deemed to be Outstanding immediately following such
         issuance, (B) the price per share for such Additional Shares of Common
         Stock shall be deemed to be the lowest possible price per share in any
         range of prices per share at which such Additional Shares of Common
         Stock are available to such holders, and (C) the Issuer shall be deemed
         to have received all of the consideration payable therefor, if any, as
         of the date of the actual issuance of such warrants or other rights. No
         further adjustments of the Current Warrant Price shall be made upon the
         actual issuance of such Common Stock or of such other rights or upon
         exercise of such warrants or other rights or upon the actual issuance
         of such Common Stock upon such conversion or exchange of such
         Convertible Securities.

4.5      ISSUANCE OF CONVERTIBLE SECURITIES. If at any time the Issuer shall
         take a record of the holders of its Common Stock for the purpose of
         entitling them to receive a distribution of, or shall in any manner
         (whether directly or by assumption in a merger in which the Issuer is
         the surviving corporation) issue or sell, any Convertible Securities,
         other than Permitted Issuances, whether or not the rights to exchange
         or convert thereunder are immediately exercisable, and if the price per
         share for which Common Stock is issuable upon such conversion or
         exchange shall be less than the Current Market Price in effect
         immediately prior to the time of such issue or sale of Convertible
         Securities, then the Current Warrant Price shall be adjusted as
         provided in Section 4.3(a) of this Agreement on the basis that (A) the
         maximum number of Additional Shares of Common Stock necessary to effect
         the conversion or exchange of all such Convertible Securities shall be
         deemed to be Outstanding immediately following such issuance, (B) the
         price per share of such Additional Shares of Common Stock shall be
         deemed to be the lowest possible price in any range of prices at which
         such Additional Shares of Common Stock are available to such holders,
         and (C) the Issuer shall be deemed to have received all of the
         consideration payable therefor, if any, as of the date of actual
         issuance of such Convertible Securities. No adjustment of the Current
         Warrant Price shall be made under this Section 4.5 upon the issuance of
         any Convertible Securities which are issued pursuant to the exercise of
         any warrants or other subscription or purchase rights therefor if any
         such adjustments shall previously have been made upon the issuance of
         such warrants or other rights pursuant to Section 4.4 of this
         Agreement. No further adjustments of the Current Warrant Price shall be
         made upon the actual issue of such Common Stock upon conversion or
         exchange of such Convertible Securities and, if any issue or sale of
         such Convertible Securities is made upon exercise of any warrant or
         other right to purchase any such Convertible Securities for which
         adjustments of the Current Warrant Price have been or are to be made
         pursuant to other provisions of this Section 4, no further adjustments
         of the Current Warrant Price shall be made by reason of such issue or
         sale.

                                       12
<PAGE>

4.6      SUPERSEDING ADJUSTMENT. If, at any time after any adjustment of the
         Current Warrant Price shall have been made pursuant to Section 4.4 or
         Section 4.5 of this Agreement as the result of any issuance of
         warrants, options, rights or Convertible Securities, and such warrants,
         options or rights, or the right of conversion or exchange in such other
         Convertible Securities, shall expire, and all or a portion of such
         warrants, options or rights, or the right of conversion or exchange
         with respect to all or a portion of such other Convertible Securities,
         as the case may be, shall not have been exercised, then such previous
         adjustment shall be rescinded and annulled and, if applicable, the
         Current Warrant Price shall be recalculated as if all such expired and
         unexercised warrants, options, rights or Convertible Securities had
         never been issued.

4.7      OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS SECTION. The
         following provisions shall be applicable to the making of adjustments
         of the number of shares of Common Stock for which a Warrant is
         exercisable provided for in this Section 4:

         (a)      COMPUTATION OF CONSIDERATION. To the extent that any
                  Additional Shares of Common Stock shall be issued for cash
                  consideration, the consideration received by the Issuer
                  therefor shall be the amount of the cash received by the
                  Issuer therefor, or, if such Additional Shares of Common Stock
                  are sold to underwriters or dealers for public offering
                  without a subscription offering, the initial public offering
                  price (in any such case subtracting any amounts paid or
                  receivable for accrued interest or accrued dividends, but not
                  subtracting any compensation, discounts or expenses paid or
                  incurred by the Issuer for and in the underwriting of, or
                  otherwise in connection with, the issuance thereof). To the
                  extent that such issuance shall be for a consideration other
                  than cash, then, except as herein otherwise expressly
                  provided, the amount of such consideration shall be deemed to
                  be the fair value of such consideration at the time of such
                  issuance as determined reasonably and in good faith by a
                  majority of the disinterested members of the board of
                  directors of the Issuer.

         (b)      WHEN ADJUSTMENTS TO BE MADE. The adjustments required by this
                  Section 4 shall be made whenever and as often as any specified
                  event requiring an adjustment shall occur, except that any
                  adjustment to the number of shares for which the Warrants are
                  exercisable that would otherwise be required may be postponed
                  (except in the case of a subdivision or combination of shares
                  of the Common Stock, as provided for in Section 4.1 of this
                  Agreement) up to, but not beyond, the date and time of
                  exercise of any Warrants if such adjustment either by itself
                  or with other adjustments not previously made adds or
                  subtracts less than 1% to the number of shares of Common Stock
                  for which the Warrants initially issued pursuant to this
                  Agreement are exercisable immediately prior to the making of
                  such adjustment. Any adjustment representing a change of less
                  than such minimum amount (except as aforesaid) which is
                  postponed shall be carried forward and made as soon as such
                  adjustment, together with other adjustments required by this
                  Section 4 and not previously made, would result in a minimum
                  adjustment or on the date of exercise. For the purpose of any
                  adjustment, any specified event shall be deemed to have
                  occurred at the close of business on the date of its
                  occurrence.

                                       13
<PAGE>

         (c)      FRACTIONAL INTERESTS. In computing adjustments under this
                  Section 4, fractional interests in Common Stock resulting from
                  an issuance of additional Warrants to any Warrant Holder
                  pursuant to this Section 4 shall be taken into account to the
                  nearest 1/10th of a share, subject to Section 2.4 of this
                  Agreement.

         (d)      WHEN ADJUSTMENT NOT REQUIRED. If the Issuer shall take a
                  record of the holders of its Common Stock for the purpose of
                  entitling them to receive a dividend or distribution or
                  subscription or purchase rights and shall, thereafter and
                  before the distribution to stockholders thereof, legally
                  abandon its plan to pay or deliver such dividend,
                  distribution, subscription or purchase rights, no adjustment
                  shall be required by reason of the taking of such record and
                  any such adjustment previously made in respect thereof shall
                  be rescinded and annulled.

         (e)      ESCROW OF WARRANT STOCK. If after any property becomes
                  distributable pursuant to this Section 4 by reason of the
                  taking of any record of the holders of Common Stock, but prior
                  to the occurrence of the event for which such record is taken,
                  any Warrant Holder exercises Warrants, any Additional Shares
                  of Common Stock issuable upon exercise of such Warrant by
                  reason of such adjustment shall be held in escrow for a
                  Warrant Holder by the Issuer to be issued to such Warrant
                  Holder upon and to the extent that the event actually takes
                  place, upon payment of the balance, if any, of the Warrant
                  Price for such Warrant at such date (after taking into account
                  any overpayment of the Warrant Price made at any time of the
                  initial Warrant exercise). Notwithstanding any other provision
                  to the contrary herein, if the event for which such record was
                  taken fails to occur or is rescinded, then such escrowed
                  shares shall be canceled by the Issuer and escrowed property
                  returned.

4.8      REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR DISPOSITION
         OF ASSETS. In the event the Issuer shall reorganize its capital,
         reclassify its capital stock, consolidate or merge with and into
         another corporation or entity (where the Issuer is not the surviving
         corporation or where there is a change in or distribution with respect
         to the Common Stock of the Issuer), or sell, transfer or otherwise
         dispose of all or substantially all its property, assets or business to
         another corporation or entity and, pursuant to the terms of such
         reorganization, reclassification, merger, consolidation or disposition
         of assets, shares of common stock of the successor or acquiring
         corporation or entity, or any cash, shares of stock or other securities
         or property of any nature whatsoever (including warrants or other
         subscription or purchase rights) in addition to or in lieu of common
         stock of the successor or acquiring corporation or entity ("OTHER
         PROPERTY"), are to be received by or distributed to the holders of
         Common Stock of the Issuer, then the Issuer shall, as a condition
         precedent to such transaction, cause effective provisions to be made so
         that each Warrant Holder shall have the right thereafter to receive,
         upon exercise of a warrant, solely the number of shares of "common
         stock of the successor or acquiring corporation" or of the Issuer, if
         it is the surviving corporation, and Other Property receivable upon or
         as a result of such reorganization, reclassification, merger,
         consolidation or disposition of assets, by a holder of the number of
         shares of Common Stock for which a Warrant is exercisable immediately
         prior to such event. In case of any such reorganization,
         reclassification, merger, consolidation or disposition of assets, such
         provisions shall include the express assumption by the successor or
         acquiring corporation

                                       14
<PAGE>

         or entity (if other than the Issuer) of the due and punctual observance
         and performance of each and every covenant and condition of this
         Agreement to be performed and observed by the Issuer and all the
         obligations and liabilities hereunder, subject to such modifications as
         may be deemed appropriate (as determined by resolution of the board of
         directors of the Issuer) to provide for adjustments of shares of the
         Common Stock for which a Warrant is exercisable which shall be as
         nearly equivalent as practicable to the adjustments provided for in
         this Section 4. For purposes of this Section 4.8, "common stock of the
         successor or acquiring corporation" shall include stock of such
         corporation of any class which is not preferred as to dividends or
         assets over any other class of stock or other securities of such
         corporation or entity and which is not subject to redemption and shall
         also include any evidences of indebtedness, shares of stock or other
         securities which are convertible into or exchangeable for any such
         stock or other securities, either immediately or upon the arrival of a
         specified date or the happening of a specified event, and any warrants
         or other rights to subscribe for or purchase any such stock or
         securities. The foregoing provisions of this Section 4.8 shall
         similarly apply to successive reorganizations, reclassifications,
         mergers, consolidations or disposition of assets.

5.       NOTICES TO WARRANT HOLDERS

5.1      NOTICE OF ADJUSTMENTS. Whenever the number of shares of Common Stock
         for which a Warrant is exercisable, or whenever the price at which a
         share of such Common Stock may be purchased upon exercise of the
         Warrants, shall be adjusted pursuant to Section 4, the Issuer shall
         forthwith prepare a certificate to be executed by the chief financial
         officer of the Issuer setting forth, in reasonable detail, the event
         requiring the adjustment and the method by which such adjustment was
         calculated (including a description of the basis on which the board of
         directors of the Issuer determined the fair value of any evidences of
         indebtedness, shares of stock, other securities or property or warrants
         or other subscription or purchase rights referred to in Section 4 of
         this Agreement), specifying the number of shares of Common Stock for
         which a Warrant is exercisable and (if such adjustment was made
         pursuant to Section 4.8 of this Agreement) describing the number and
         kind of any other shares of stock or Other Property for which a Warrant
         is exercisable, and any change in the purchase price or prices thereof,
         after giving effect to such adjustment or change. The Issuer shall
         promptly cause a signed copy of such certificate to be delivered to
         each Warrant Holder in accordance with Section 15.2 of this Agreement.
         The Issuer shall keep at its office or agency designated pursuant to
         Section 12 of this Agreement copies of all such certificates and cause
         the same to be available for inspection at said office during normal
         business hours by any Warrant Holder or any prospective purchaser of a
         Warrant designated by a Warrant Holder thereof.

5.2      NOTICE OF CERTAIN CORPORATE ACTION. Each Warrant Holder shall be
         entitled to the same rights to receive notice of corporate action as
         any holder of Common Stock.

6.       REPRESENTATIONS AND WARRANTIES

         The Issuer makes the following representations and warranties, each and
         all of which shall be true and correct as of the date of execution and
         delivery of this Agreement and shall survive the execution and delivery
         of this Agreement:

                                       15
<PAGE>

         (a)      DUE ORGANIZATION; ETC. The Issuer is a corporation duly
                  organized validly existing and in good standing under the laws
                  of the State of Delaware, and has the power and authority to
                  execute and deliver this Agreement and the Warrant
                  Certificates, to issue the Warrants and to perform its
                  obligations under this Agreement and the Warrant Certificates.

         (b)      DUE AUTHORIZATION; NO VIOLATION. The execution, delivery and
                  performance by the Issuer of this Agreement and the Warrant
                  Certificates, the issuance of the Warrants and the issuance of
                  the Warrant Stock upon exercise of the Warrants have been duly
                  authorized by all necessary corporate action and do not and
                  will not violate, or result in a breach of, or constitute a
                  default under or require any consent under, or result in the
                  creation of any lien or security interest upon the assets of
                  the Issuer pursuant to, any Requirement of Law or any
                  contractual obligation binding upon the Issuer.

         (c)      DUE EXECUTION; ETC. This Agreement has been duly executed and
                  delivered by the Issuer and constitutes a legal, valid and
                  enforceable obligation of the Issuer. When the Warrants and
                  the Warrant Certificates have been issued as contemplated
                  hereby, (i) the Warrants and the Warrant Certificates will
                  constitute legal, valid, binding and enforceable obligations
                  of the Issuer and (ii) the Warrant Stock, when issued upon
                  exercise of the Warrants in accordance with the terms hereof,
                  will be duly authorized, validly issued, fully paid and
                  non-assessable shares of Common Stock with no personal
                  liability attaching to the ownership thereof.

         (d)      CAPITALIZATION. The total number of shares of all classes of
                  stock that the Issuer shall on the Closing Date have authority
                  to issue is 50,000,000 shares, consisting of (i) 40,000,000
                  shares of Common Stock, par value $0.01 per share, of which,
                  after giving effect to the transactions contemplated herein or
                  in the Credit Agreement and all other issuances of capital
                  stock of the Issuer on or prior to the Closing Date,
                  15,975,543 shares of Common Stock will be issued and
                  outstanding and 1,250,000 shares of Common Stock will be
                  reserved for future issuance pursuant to this Agreement and
                  (ii) 10,000,000 shares of Preferred Stock, par value $0.01 per
                  share (1,500,000 of which are designated as Series A
                  Preferred), of which, after giving effect to the other
                  issuances of capital stock of the Issuer on the Closing Date,
                  1,000,000 shares of Series A Preferred will be issued and
                  outstanding. Schedule A sets forth a complete list of the
                  outstanding capital stock of the Issuer, including any
                  options, warrants or rights to purchase the capital stock of
                  the Issuer (including the warrants issued on the Closing
                  Date). The delivery hereunder by the Issuer to the Warrant
                  Holder of the Warrants issued on the Closing Date will
                  transfer and convey to the Warrant Holder good and marketable
                  title to such Warrants and, upon exercise of such Warrants in
                  accordance with this Agreement, good and marketable title to
                  the Common Stock purchased upon such exercise, free and clear
                  of all preemptive rights, liens, charges and encumbrances,
                  except for restrictions on transfer referred to in this
                  Agreement, or arising under the Federal and state securities
                  laws. Except as otherwise disclosed on Schedule A, the Issuer
                  does not have outstanding any

                                       16
<PAGE>

                  stock or securities convertible into or exchangeable for any
                  shares of its stock, nor, except as so set forth, does it have
                  outstanding any agreements, rights or options entitling any
                  person to subscribe for or to purchase any capital stock or
                  securities convertible into or exchangeable for any of its
                  shares of stock.

         (e)      FULL DISCLOSURE. No information contained in this Agreement,
                  the financial statements referred to in the Credit Agreement
                  or any written statement furnished by or on behalf of the
                  Issuer pursuant to the terms of this Agreement to the Warrant
                  Holder contains any untrue statement of a material fact or
                  omits to state a material fact necessary to make the
                  statements contained herein or therein not misleading in light
                  of the circumstances under which made.

         (f)      WARRANT PRICE. The Issuer has taken all corporate action, and
                  obtained all necessary authorizations or exemptions from any
                  public regulatory body or bodies or governmental entity or
                  entities having jurisdiction thereof, as may be necessary in
                  order that the Issuer may validly and legally issue fully paid
                  and non-assessable shares of Common Stock upon to exercise of
                  the warrants at the Warrant Price, as the same may be adjusted
                  pursuant hereto.

         (g)      OTHER REPRESENTATIONS AND WARRANTIES. The Issuer hereby
                  affirms and reaffirms for the express benefit of the Warrant
                  Holders that the representations and warranties made by the
                  Issuer in that certain Subordinated Guaranty Agreement dated
                  of even date herewith are true and correct, as if made -- in
                  favor of the Warrant Holder on the date hereof.

7.       CERTAIN COVENANTS

7.1      NO IMPAIRMENT. The Issuer shall not by any action including, without
         limitation, amending its certificate of incorporation or through any
         reorganization, transfer of assets, consolidation, merger, dissolution,
         issue or sale of securities or any other voluntary action, avoid or
         seek to avoid the observance or performance of any of the terms of this
         Agreement, but will at all times in good faith assist in the carrying
         out of all such terms and in the taking of all such actions as may be
         necessary or appropriate to protect the rights of each Warrant Holder
         against impairment. Without limiting the generality of the foregoing,
         the Issuer will use reasonable good faith efforts to obtain all such
         authorizations, exemptions or consents from any public regulatory body
         having jurisdiction thereof as may be necessary to enable it to perform
         its obligations under this Agreement.

         Upon the request of a Warrant Holder, the Issuer will, at any time
         during the period this Agreement is in effect, acknowledge in writing,
         in form satisfactory to such Warrant Holder, the continuing validity of
         this Agreement and the obligations of the Issuer hereunder.

7.2      RESERVATION AND AUTHORIZATION OF COMMON STOCK; REGISTRATION WITH, OR
         APPROVAL OF, ANY GOVERNMENTAL AUTHORITY. From and after the Closing
         Date, the Issuer shall at all times

                                       17
<PAGE>

         reserve and keep available for issue upon the exercise of Warrants such
         number of its authorized but unissued shares of Common Stock as will be
         sufficient to permit the exercise in full of all outstanding Warrants.
         All shares of Common Stock which shall be so issuable, when issued upon
         exercise of any Warrants and payment therefor in accordance with the
         terms of this Agreement, shall be duly and validly issued and fully
         paid and non-assessable, and not subject to preemptive rights.

         Before taking any action which would result in an adjustment in the
         number of shares of Common Stock for which a Warrant is exercisable or
         in the Current Warrant Price, the Issuer shall obtain all such
         authorizations or exemptions thereof, or consents thereto, as may be
         necessary from any public regulatory body or bodies or governmental
         entity or entities having jurisdiction thereof.

         If any shares of Common Stock required to be reserved for issuance upon
         exercise of Warrants require registration or qualification with any
         governmental authority under any federal or state law (otherwise than
         as provided in Section 9 of this Agreement) before such shares may be
         so issued, the Issuer will in good faith and as expeditiously as
         possible and at its expense endeavor to cause such shares to be duly
         registered.

8.       TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS

         In the case of all dividends or other distributions by the Issuer to
         the holders of its Common Stock with respect to which any provision of
         Section 4 of this Agreement refers to the taking of a record of such
         holders, the Issuer will in each such case take such a record as of the
         close of business on a Business Day. The Issuer will not at any time,
         except upon dissolution, liquidation or winding up of the Issuer, close
         its stock transfer books or Warrant transfer books so as to result in
         preventing or delaying the exercise or transfer of any Warrants.

9.       RESTRICTIONS ON TRANSFERABILITY

         The Warrants and the Warrant Stock shall not be transferred before
         satisfaction of the conditions specified in this Section 9, which
         conditions are intended to ensure compliance with the provisions of the
         Securities Act and applicable state securities laws with respect to the
         transfer of any Warrant or any Warrant Stock. Each Warrant Holder, by
         entering into this Agreement and accepting the Warrants, agrees to be
         bound by the provisions of this Section 9.

9.1      RESTRICTIVE LEGEND. Except as otherwise provided in this Section 9,
         each certificate representing Warrants or Warrant Stock, shall be
         stamped or otherwise imprinted with a legend in substantially the
         following form:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
         APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN
         THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. SUCH
         SECURITIES ARE SUBJECT TO THE RESTRICTIONS AND PRIVILEGES SPECIFIED IN
         A WARRANT

                                       18
<PAGE>

         AGREEMENT, DATED AS OF OCTOBER 31, 2000, BETWEEN BRIGHAM EXPLORATION
         COMPANY AND THE INITIAL HOLDERS OF SECURITIES NAMED THEREIN, A COPY OF
         WHICH IS ON FILE WITH THE SECRETARY OF BRIGHAM EXPLORATION COMPANY AND
         WILL BE FURNISHED WITHOUT CHARGE TO THE HOLDER HEREOF UPON WRITTEN
         REQUEST, AND THE HOLDER OF THIS CERTIFICATE AGREES TO BE BOUND
         THEREBY."

9.2      NOTICE OF PROPOSED TRANSFERS; REQUESTS FOR REGISTRATION. Prior to any
         transfer of any Warrants or any shares of Restricted Common Stock, the
         Warrant Holder of such Warrants or Restricted Common Stock shall give
         five days prior written notice to the Issuer of such Warrant Holder's
         intention to effect such transfer (a "TRANSFER NOTICE"). Each Warrant
         Holder agrees that it will not sell, transfer or otherwise dispose of
         Warrants or any shares of Restricted Common Stock, in whole or in part,
         except pursuant to an effective registration statement under the
         Securities Act or an exemption from registration thereunder. Each
         certificate, if any, evidencing such shares of Restricted Common Stock
         issued upon such transfer shall bear the restrictive legend set forth
         in Section 9.1, and each Warrant Certificate issued upon such transfer
         shall bear the restrictive legend set forth in Section 9.1 of this
         Agreement, unless in the opinion of the transferee's or Warrant
         Holder's counsel delivered to the Issuer in connection with such
         transfer such legend is not required in order to ensure compliance with
         the Securities Act.

         The Warrant Holders of Warrants and Warrant Stock shall have the right
         to request registration of such Warrant Stock pursuant to Section 9.3
         of this Agreement.

9.3      INCIDENTAL REGISTRATION. If the Issuer at any time proposes to file on
         its behalf and/or on behalf of any of its security holders (the
         "DEMANDING SECURITY HOLDERS") a Registration Statement under the
         Securities Act on any form (other than a Registration Statement (i)
         filed pursuant to demand under the Company's Registration Rights
         Agreement with Joint Energy Development Investments II Limited
         Partnership, a Delaware limited partnership, and Enron Capital & Trade
         Resources Corp., a Delaware corporation, dated August 20, 1998, as
         amended, or (ii) on Form S-8 or any similar or successor form or any
         other registration statement relating to an offering of securities
         solely to the Issuer's existing security holders or employees) to
         register the offer and sale of its Common Stock for cash, it will give
         written notice to all Warrant Holders of Warrants or Warrant Stock at
         least twenty (20) days before the anticipated date of initial filing
         with the Commission of such Registration Statement, which notice shall
         set forth the Issuer's intention to effect such a registration, the
         class or series and number of equity securities proposed to be
         registered and the intended method of disposition of the securities
         proposed to be registered by the Issuer. The notice shall offer to
         include in such filing all of the Warrant Holder's Registrable
         Securities.

         Each Warrant Holder desiring to have Registrable Securities registered
         under this Section 9.3 shall advise the Issuer in writing within
         fifteen (15) days after the date of receipt of such offer from the
         Issuer, setting forth the amount of such Registrable Securities for
         which registration is requested. The Issuer shall thereupon include in
         such filing the number of shares of Registrable Securities for which
         registration is so

                                       19
<PAGE>

         requested, subject to the next sentence, and shall use its best efforts
         to effect registration under the Securities Act of such securities. If
         the managing underwriter of a proposed public offering shall advise the
         Issuer in writing that, in its opinion, the distribution of the
         Registrable Securities requested to be included in the registration
         concurrently with the securities being registered by the Issuer or any
         Demanding Security Holder would materially and adversely affect the
         distribution of such securities by the Issuer or such Demanding
         Security Holders, then all selling security holders (but not the Issuer
         or the Demanding Security Holders) shall reduce the amount of
         securities each intended to distribute through such offering on a pro
         rata basis to the greatest aggregate amount which, in the opinion of
         such managing underwriter, would not materially and adversely affect
         the distribution of such securities.

         Nothing in this Section 9.3 shall preclude the Issuer from
         discontinuing the registration of its securities being effected on its
         behalf under this Section 9.3 at any time prior to the effective date
         of the registration relating thereto. Notwithstanding any provision
         herein, the rights of the Warrant Holder under this Section 9.3 are
         subject to the express limitations contained in registration rights
         agreements in effect on the date hereof between the Issuer and other
         parties; provided, however, that the Issuer shall not on or after the
         date of this Agreement enter into any registration rights agreement
         with respect to its securities that conflict with the registration
         rights granted to the Warrant Holder herein.

9.4      REGISTRATION PROCEDURES. If the Issuer is required by the provisions of
         this Section 9 to use its best efforts to effect the registration of
         any of its securities under the Securities Act, the Issuer will, as
         expeditiously as possible:

         (a)      prepare and file with the Commission a registration statement
                  with respect to such securities (a "REGISTRATION STATEMENT")
                  and use its best efforts to cause such Registration Statement
                  to become and remain effective for the period described in
                  paragraph (b) below;

         (b)      prepare and file with the Commission such amendments and
                  supplements to such Registration Statement and the prospectus
                  used in connection therewith as may be necessary to keep such
                  Registration Statement effective and to comply with the
                  provisions of the Securities Act with respect to the sale or
                  other disposition of all securities covered by such
                  Registration Statement until the earlier of such time as all
                  of such securities have been disposed of in a public offering
                  or the expiration of 90 days;

         (c)      furnish to such selling security holders such number of copies
                  of a summary prospectus or other prospectus, including a
                  preliminary prospectus, in conformity with the requirements of
                  the Securities Act, and such other documents, as such selling
                  security holders may reasonably request;

         (d)      use its best efforts to register or qualify the securities
                  covered by such Registration Statement under such other
                  securities or blue sky laws of such jurisdictions within the
                  United States as each holder of such securities shall

                                       20
<PAGE>

                  request (provided, however, the Issuer shall not be obligated
                  to qualify as a foreign corporation to do business under the
                  laws of any jurisdiction in which it is not then qualified or
                  to file any general consent to service or process), and do
                  such other reasonable acts and things as may be required of it
                  to enable such holder to consummate the disposition in such
                  jurisdiction of the securities covered by such Registration
                  Statement;

         (e)      enter into customary agreements (including an underwriting
                  agreement in customary form) and take such other actions as
                  are reasonably required in order to expedite or facilitate the
                  disposition of such Registrable Securities; and

         (f)      otherwise use its best efforts to comply with all applicable
                  rules and regulations of the Commission, and make available to
                  its security holders, as soon as reasonably practicable, but
                  not later than 18 months after the effective date of the
                  Registration Statement, an earnings statement covering the
                  period of at least 12 months beginning with the first full
                  month after the effective date of such Registration Statement,
                  which earnings statements shall satisfy the provisions of
                  Section 11(a) of the Securities Act.

                  It shall be a condition precedent to the obligation of the
                  Issuer to take any action pursuant to this Section 9 in
                  respect of the securities which are to be registered at the
                  request of any Warrant Holder of Registrable Securities that
                  such Warrant Holder shall furnish to the Issuer such
                  information regarding the securities held by such Warrant
                  Holder and the intended method of disposition thereof as the
                  Issuer shall reasonably request and as shall be required in
                  connection with the action taken by the Issuer.

9.5      EXPENSES. All expenses incurred in complying with this Section 9,
         including, without limitation, all registration and filing fees
         (including all expenses incident to filing with the NASD), printing
         expenses, fees and disbursements of counsel for the Issuer, the
         reasonable fees and expenses of one counsel for the selling security
         holders (selected by the Person holding the plurality of the securities
         being registered), expenses of any special audits incident to or
         required by any such registration and expenses of complying with the
         securities or blue sky laws of any jurisdictions pursuant to Section
         9.4(d) of this Agreement (all of such expenses shall be collectively
         referred to herein as "REGISTRATION EXPENSES"), shall be paid by the
         Issuer; provided, however, the Issuer shall not be responsible for any
         discount or commission or cost reimbursement to any underwriter in
         respect of the securities sold by such Warrant Holder of Registrable
         Securities.

9.6      INDEMNIFICATION AND CONTRIBUTION.

         (a)      In the event of any registration of any of the Registrable
                  Securities under the Securities Act pursuant to this Section
                  9, the Issuer shall indemnify and hold harmless each Warrant
                  Holder of such Registrable Securities, such Warrant Holder's
                  directors and officers, each Affiliate of such Warrant Holder,
                  and each other Person (including each underwriter) who
                  participated in the offering of such Registrable Securities
                  and each other Person, if any, who controls such Warrant
                  Holder or such participating Person, if any, who controls such
                  Warrant

                                       21
<PAGE>

                  Holder or such participating Person within the meaning of the
                  Securities Act, against any losses, claims, damages or
                  liabilities, joint or several, to which such Warrant Holder or
                  any such director or officer or participating Person or
                  Affiliate or controlling Person may become subject under the
                  Securities Act or any other statute or at common law, insofar
                  as such losses, claims, damages or liabilities (or actions in
                  respect thereof) arise out of or are based upon (i) any
                  alleged untrue statement of any material fact contained, on
                  the effective date thereof, in any Registration Statement
                  under which such securities were registered under the
                  Securities Act, any preliminary prospectus or final prospectus
                  contained therein, or any amendment or supplement thereto, or
                  (ii) any alleged omission to state therein 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, and shall reimburse such
                  Warrant Holder or such director, officer or participating
                  Person or Affiliate or controlling Person for any legal or any
                  other expenses reasonably incurred by such Warrant Holder or
                  such director, officer or participating Person or Affiliate or
                  controlling Person in connection with investigating or
                  defending any such loss, claim, damage, liability or action;
                  provided, however, that the Issuer shall not be liable in any
                  such case to the extent that any such loss, claim, damage or
                  liability directly arises out of or is directly based upon any
                  alleged untrue statement or alleged omission made in such
                  Registration Statement, preliminary prospectus, prospectus or
                  amendment or supplement in reliance upon and in conformity
                  with written information furnished to the Issuer by such
                  Warrant Holder specifically for use therein. Such indemnity
                  shall remain in full force and effect regardless of any
                  investigation made by or on behalf of such Warrant Holder or
                  such director, officer or participating Person or Affiliate or
                  controlling Person, and shall survive the transfer of such
                  securities by such Warrant Holder.

         (b)      Each Warrant Holder of any Registrable Securities, by
                  acceptance thereof, agrees to indemnify and hold harmless the
                  Issuer, its directors and officers and each other Person, if
                  any, who controls the Issuer within the meaning of the
                  Securities Act against any losses, claims, damages or
                  liabilities, joint or several, to which the Issuer or any such
                  director or officer or any such Person may become subject
                  under the Securities Act or any other statute or at common
                  law, insofar as such losses, claims, damages or liabilities
                  (or actions in respect thereof) directly arise out of or are
                  directly based upon (i) information in writing provided to the
                  Issuer by such Warrant Holder of such Registrable Securities
                  contained, on the effective date thereof, in any Registration
                  Statement under which securities were registered under the
                  Securities Act at the request of such Warrant Holder, any
                  preliminary prospectus or final prospectus contained therein,
                  or any amendment or supplement thereto or (ii) that such
                  Warrant Holder's obligation under this Section 9.6(b) to
                  indemnify and hold harmless the Issuer shall in no event
                  exceed the lesser of (x) the damage attributable solely to the
                  inclusion of such written information in such Registration
                  Statement, preliminary prospectus, final prospectus, or
                  amendment or supplement suffered by the Person or Persons
                  whose claims gave rise to such losses, claims, damages or
                  liabilities and (y) the net

                                       22
<PAGE>

                  proceeds received by such Warrant Holder from the sale of
                  Registrable Securities giving rise to such indemnification.

         (c)      If the indemnification provided for in this Section 9 from the
                  indemnifying party is unavailable to an indemnified party
                  hereunder in respect of any losses, claims, damages,
                  liabilities or expenses referred to herein, then the
                  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 fault of the indemnifying party and
                  indemnified parties in connection with the actions which
                  resulted in such losses, claims, damages, liabilities or
                  expenses, as well as any other relevant equitable
                  considerations. The relative fault of such indemnifying party
                  and indemnified parties shall be determined by reference to,
                  among other things, whether any action in question, including
                  any untrue or alleged untrue statement of a material fact or
                  omission or alleged omission to state a material fact, has
                  been made by, or related to information supplied by, such
                  indemnifying party or indemnified parties, and the parties'
                  relative intent, knowledge, access to information and
                  opportunity to correct or prevent such action. The amount paid
                  or payable by a party under this Section 9 as a result of the
                  losses, claims, damages, liabilities and expenses referred to
                  above shall be deemed to include any legal or other fees or
                  expenses reasonably incurred by such party in connection with
                  any investigation or proceeding.

                           The parties hereto agree that it would not be just
                  and equitable if contribution pursuant to this Section 9.6(c)
                  were determined by pro rata allocation or by any other method
                  of allocation which does not take account of the equitable
                  considerations referred to in the immediately preceding
                  paragraph. Notwithstanding the provisions of this subsection
                  (c), no Warrant Holder shall be required to contribute any
                  amount in excess of the total amount received by it upon the
                  sale of its securities pursuant to the Registration Statement
                  to which the losses, claims, damages, liabilities and expenses
                  referred to above relate. 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 obligations of each of the Warrant
                  Holders under this subsection (c) to contribute are several
                  and not joint.

         (d)      CONDUCT OF INDEMNIFICATION PROCEEDINGS. Any person or entity
                  entitled to indemnification hereunder shall (i) give prompt
                  written notice to the indemnifying party after the receipt by
                  the indemnified party of a written notice of the commencement
                  of any action, suit, proceeding or investigation or threat
                  thereof made in writing for which such indemnified party will
                  claim indemnification or contribution pursuant to this
                  Agreement; provided, however, that the failure of any
                  indemnified party to give notice as provided herein shall not
                  relieve the indemnifying party of its obligations under
                  Section 9.6 hereof, except to the extent that the indemnifying
                  party is actually prejudiced by such failure to give notice,
                  and (ii) unless in such indemnified party's reasonable
                  judgment a conflict of interest may exist between such
                  indemnified and indemnifying parties with

                                       23
<PAGE>

                  respect to such claim, permit such indemnifying party to
                  assume the defense of such claim with counsel reasonably
                  satisfactory to the indemnified party. If the indemnifying
                  party is entitled to, and does, assume the defense of such
                  claim, the indemnified party shall have the right to employ
                  separate counsel and to participate in the defense thereof,
                  but the fees and expenses of such counsel shall be borne by
                  the indemnified party. Whether or not such defense is assumed
                  by the indemnifying party, the indemnifying party shall not be
                  subject to any liability for any settlement made without its
                  consent (but such consent will not be unreasonably withheld).
                  No indemnifying party shall be permitted to consent to the
                  entry of any judgment or to enter into any settlement that
                  does not include as an unconditional term thereof the giving
                  by the claimant or plaintiff to such indemnified party of a
                  release from all liability in respect of such claim or
                  litigation. An indemnifying party who is not entitled to, or
                  elects not to, assume the defense of a claim shall not be
                  obligated to pay the fees and expenses of more than one
                  counsel in any one jurisdiction for all parties indemnified by
                  such indemnifying party with respect to such claim, unless in
                  the reasonable judgment of any indemnified party a conflict of
                  interest may exist between such indemnified party and any
                  other of such indemnified parties with respect to such claim,
                  in which event the indemnifying party shall be obligated to
                  pay the fees and expenses of such additional counsel or
                  counsels.

9.7      TERMINATION OF RESTRICTIONS. Notwithstanding the foregoing provisions
         of this Section 9, the restrictions imposed by this Section 9 upon the
         transferability of the Warrants, the Warrant Stock and the Restricted
         Common Stock (or Common Stock issuable upon the exercise of the
         Warrants) and the legend requirement of Section 9.1 of this Agreement
         shall terminate as to any particular Warrant or share of Warrant Stock
         or Restricted Common Stock (or Warrant Stock) (i) when and so long as
         such security shall have been registered under the Securities Act and
         disposed of pursuant thereto, or (ii) when the Warrant Holder thereof
         shall have delivered to the Issuer the written opinion of counsel to
         such Warrant Holder, stating that such legend is not required in order
         to ensure compliance with the Securities Act. Whenever the restrictions
         imposed by this Section 9 shall terminate as to any Warrants or any
         Restricted Common Stock, as hereinabove provided, the Warrant Holder
         thereof shall be entitled to receive from the Issuer, at the expense of
         the Issuer, a new Warrant Certificate or a new certificate representing
         such Common Stock, as the case may be, not bearing the restrictive
         legend set forth in Section 9.1 of this Agreement.

9.8      LISTING ON SECURITIES EXCHANGE. If at any time the Issuer shall list
         any shares of Common Stock on any securities exchange, it will, at its
         expense, use its best efforts to list thereon, maintain and, when
         necessary, increase such listing of, all shares of Common Stock issued
         or, to the extent permissible under the applicable securities exchange
         rules, issuable upon the exercise of the Warrants so long as any shares
         of Common Stock shall be so listed during the Exercise Period.

                                       24
<PAGE>

10.      SUPPLYING INFORMATION

         The Issuer shall cooperate with each Warrant Holder of a Warrant and
         each Warrant Holder of Restricted Common Stock in supplying such
         information as may be reasonably necessary for such Warrant Holder to
         complete and file any information reporting forms presently or
         hereafter required by the Commission as a condition to the availability
         of an exemption from the Securities Act for the sale of any Warrant or
         Restricted Common Stock.

11.      LOSS OR MUTILATION

         Upon receipt by the Issuer from any Warrant Holder of evidence
         reasonably satisfactory to it of the ownership of and the loss, theft,
         destruction or mutilation of a certificate representing Warrants or
         Warrant Stock and indemnity reasonably satisfactory to it (it being
         understood that the written agreement of the Warrant Holder or an
         Affiliate thereof shall be sufficient indemnity) and in case of
         mutilation upon surrender and cancellation hereof or thereof, the
         Issuer will execute and deliver in lieu hereof or thereof a new Warrant
         or new stock certificate as the case may be, of like tenor to such
         Warrant Holder; provided, in the case of mutilation, no indemnity shall
         be required if the certificate representing Warrants or Warrant Stock
         in identifiable form is surrendered to the Issuer for cancellation.

12.      OFFICE OF THE ISSUER

         As long as any of the Warrants remain outstanding, the Issuer shall
         maintain an office or agency (which may be the principal executive
         officers of the Issuer) where the Warrants may be presented for
         exercise, registration or transfer, division or combination as provided
         in this Agreement.

13.      APPRAISAL

         The determination of the Appraised Value per share of Common Stock
         shall be made by an investment banking firm of nationally recognized
         standing mutually agreed to by the Issuer and the Required Holders. If
         the investment banking firm selected by the Issuer is not acceptable to
         the Required Holders and the Issuer and the Required Holders cannot
         agree on a mutually acceptable investment banking firm, then the
         Required Holders and the Issuer shall each choose one such investment
         banking firm and the respective chosen firms shall agree on another
         investment banking firm which shall make the determination. The Issuer
         shall retain, at its sole cost, such investment banking firm as may be
         necessary for the determination of Appraised Value required by the
         terms of this Agreement.

14.      LIMITATION OF LIABILITY; NO RIGHTS AS STOCKHOLDER

         No provision hereof, in the absence of affirmative action by any
         Warrant Holder to purchase shares of Common Stock, and no enumeration
         herein of the rights or privileges of any Warrant Holder, shall give
         rise to any liability of such Warrant Holder for the purchase price of
         any Common Stock or as a stockholder of the Issuer, whether such

                                       25
<PAGE>

         liability is asserted by the Issuer or by creditors of the Issuer.
         Except as may otherwise be provided by law or by separate agreement
         between a Warrant Holder and the Issuer, no Warrant Holder, as such,
         shall be entitled to vote or be deemed the holder of Common Stock or
         any other securities (other than Warrants) of the Issuer which may at
         any time be issuable on the exercise hereof, nor shall anything
         contained herein be construed to confer upon any Warrant Holder the
         rights of a stockholder of the Issuer or the right to vote for the
         election of directors or upon any matters submitted to stockholders at
         any meeting thereof, or to give or withhold consent to any corporate
         action or to receive notice of meetings or other actions affecting
         stockholders (except as provided herein), or to receive dividends or
         otherwise, until the Warrants shall have been exercised in accordance
         with the terms and conditions hereof.

15.      MISCELLANEOUS

15.1     NON-WAIVER AND EXPENSES. No course of dealing or any delay or failure
         to exercise any right hereunder on the part of any holder of Warrant
         Stock shall operate as a waiver of such right or otherwise prejudice
         such holder of Warrant Stock's rights, powers or remedies. If the
         Issuer fails to comply with any provision of this Agreement, the Issuer
         shall pay to the applicable holder of Warrant Stock such amounts as
         shall be sufficient to cover any costs and expenses including, but not
         limited to, reasonable attorneys' fees, including those of appellate
         proceedings, incurred by the holder of Warrant Stock in enforcing any
         of its rights, powers or remedies hereunder.

15.2     NOTICE GENERALLY. Any notice, demand, request, consent, approval,
         declaration, delivery or other communication hereunder to be made
         pursuant to the provisions of this Agreement shall be sufficiently
         given or made if in writing and either delivered in person with receipt
         acknowledged or sent by registered or certified mail, return receipt
         requested, postage prepaid, telex, telecopier or overnight air courier
         guaranteeing next day delivery, addressed as follows:

         (a)      If to SCI, as Warrant Holder, at:

                           Address:       910 Louisiana, Suite 5000
                                          Houston, Texas 77002-4916
                           Attention:     Robert L. Roberts, Vice-President
                           Telecopier No. (713) 241-5222

         (b)      If to the Issuer at:

                           Brigham Exploration Company
                           6300 Bridge Point Parkway
                           Building 2, Suite 500
                           Austin, Texas 78730
                           Attention: President
                           Telecopier No.: (512) 427-3300

                  or at such other address as may be substituted by notice given
                  as herein provided. The giving of any notice required
                  hereunder may be waived in writing by the

                                       26
<PAGE>

                  party entitled to receive such notice. Every notice, demand,
                  request, consent, approval, declaration, delivery or other
                  communication hereunder shall be deemed to have been duly
                  given or served on the date on which personally delivered,
                  with receipt acknowledged, or three (3) Business Days after
                  the same shall have been deposited in the United States mail.

15.3     INDEMNIFICATION. Except to the extent otherwise provided in Section 9.6
         of this Agreement, the Issuer agrees to indemnify and hold harmless
         Warrant Holder and its officers, directors, employees, agents,
         attorneys and Affiliates (each an "Indemnified Party") from and against
         any liabilities, obligations, losses, damages, penalties, actions,
         judgments, suits, claims, costs, attorneys' fees, expenses and
         disbursements of any kind which may be imposed upon, incurred by or
         asserted against such Indemnified Party relating to or arising out of
         (i) such Warrant Holder's exercise of the Warrants and/or ownership of
         any shares of Warrant Stock issued in consequence thereof, or (ii) any
         litigation to which such Warrant Holder is made a party in its capacity
         as a stockholder or Warrant Holder of the Issuer; provided, however,
         that the Issuer will not be liable hereunder to the extent that any
         liabilities, obligations, losses, damages, penalties, actions,
         judgments, suits, claims, costs, attorneys' fees, expenses or
         disbursements (A) arise solely from any violation by such Warrant
         Holder of any law or regulation applicable to it or (B) are found in a
         final non-appealable judgment by a court to have resulted from such
         Warrant Holder's bad faith or willful misconduct or violation of law.
         The procedures to be followed for claims of indemnification under this
         Section 15.3 shall be as set forth in Section 9.6(d) of this Agreement.

15.4     REMEDIES. Each Warrant Holder of Warrants and Warrant Stock, in
         addition to being entitled to exercise all rights granted by law,
         including recovery of damages, will be entitled to specific performance
         of its rights under Section 9 of this Agreement. The Issuer agrees that
         monetary damages would not be adequate compensation for any loss
         incurred by reason of a breach by it of the provisions of Section 9 of
         this Agreement, and hereby agrees to waive any defense to the contrary
         in any action for specific performance that a remedy at law would be
         adequate.

15.5     SUCCESSORS AND ASSIGNS. Subject to the provisions of Sections 3.1 and 9
         of this Agreement, this Agreement and the rights evidenced hereby shall
         inure to the benefit of and be binding upon the successor of the Issuer
         and the successors and assigns of any Warrant Holder. The provisions of
         this Agreement are intended to be for the benefit of all Warrant
         Holders from time to time of the Warrants and Warrant Stock, and shall
         be enforceable by any such Warrant Holder.

15.6     COMPLETE AGREEMENT; AMENDMENT. This Agreement, the Warrant
         Certificates, the Credit Agreement and the Loan Documents constitute
         the complete agreement among the parties with respect to the subject
         matter hereof. This Agreement may be modified or amended or the
         provisions hereof waived only with the written consent of the Issuer
         and the Required Holders, provided that no Warrant may be modified or
         amended to reduce the number of shares of Common Stock for which such
         Warrant is exercisable or to increase the price at which such shares
         may be purchased upon exercise of such Warrant (before giving effect to
         any adjustment as provided herein) or to accelerate the Expiration

                                       27
<PAGE>

         Date without the prior written consent of the Warrant Holder thereof,
         and any amendment of Section 9 of this Agreement shall also require the
         written consent of Warrant Holders of Warrants and/or Warrant Stock
         representing more than 50% of the total of (i) all shares of Warrant
         Stock then subject to purchase upon exercise of all Warrants then
         Outstanding, and (ii) all shares of Warrant Stock then Outstanding.

15.7     SEVERABILITY. Wherever possible, each provision of this Agreement shall
         be interpreted in such manner as to be effective and valid under
         applicable law, but if any provision of this Agreement shall be
         prohibited by or invalid under applicable law, such provision shall be
         ineffective to the extent of such prohibition or invalidity, without
         invalidating the remainder of such provision or the remaining
         provisions of this Agreement.

15.8     HEADINGS. The headings used in this Agreement are for the convenience
         of reference only and shall not, for any purpose, be deemed a part of
         this Agreement.

15.9     GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE. IN ALL RESPECTS,
         INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS
         AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY,
         AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
         TEXAS APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT
         REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICT OF LAWS, AND ANY
         APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

15.10    CONSENT TO JURISDICTION AND VENUE.

         (a)      THE ISSUER AND EACH WARRANT HOLDER HEREBY EXPRESSLY SUBMITS TO
                  THE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS OR THE
                  UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
                  TEXAS. FINAL JUDGMENT AGAINST SUCH PARTY IN ANY SUCH SUIT
                  SHALL BE CONCLUSIVE, AND MAY BE ENFORCED IN ANY OTHER
                  JURISDICTIONS BY SUIT ON THE JUDGMENT OR AS OTHERWISE
                  PERMITTED BY APPLICABLE LAW, A CERTIFIED OR TRUE COPY OF WHICH
                  SHALL BE CONCLUSIVE EVIDENCE OF THE FACTS AND OF THE AMOUNT OF
                  ANY INDEBTEDNESS OR LIABILITY OF SUCH PARTY THEREIN DESCRIBED;
                  PROVIDED, HOWEVER, EACH PARTY MAY AT ITS OPTION BRING SUIT, OR
                  INSTITUTE OTHER JUDICIAL PROCEEDINGS AGAINST THE OTHER PARTY
                  OR ANY OF ITS ASSETS, IN THE COURTS OF ANY COUNTRY OR PLACE
                  WHERE SUCH PARTY OR SUCH ASSETS MAY BE FOUND.

         (b)      THE ISSUER AND EACH WARRANT HOLDER HEREBY IRREVOCABLY WAIVES
                  ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
                  OF VENUE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT IN ANY
                  COURTS OF THE STATE OF TEXAS OR THE UNITED STATES DISTRICT
                  COURT FOR THE SOUTHERN DISTRICT OF TEXAS

                                       28
<PAGE>

                  AND HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH
                  SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
                  BROUGHT IN AN INCONVENIENT FORUM.

15.11    COUNTERPARTS: This Agreement may be executed in two or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

                                       29
<PAGE>

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

                                 BRIGHAM EXPLORATION COMPANY, as Issuer

                                 By:   /s/Curtis F. Harrell
                                 Name:  Curtis F. Harrell
                                 Title: Chief Financial Officer

                                 SHELL CAPITAL INC.,
                                 as Warrant Holder

                                 By:    /s/Robert L. Roberts
                                 Name:  Robert L. Roberts
                                 Title: Vice President

                                       30FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated
October 31, 2000 (this "First Amendment") is among: BRIGHAM OIL & GAS, L.P., a
limited partnership formed under the laws of the State of Delaware (the
"BORROWER"); BANK OF MONTREAL, a Canadian bank, in its individual capacity (in
its individual capacity, "BMO"), SHELL CAPITAL INC. ("SCI"), SOCIETE GENERALE,
SOUTHWEST AGENCY ("Soc-Gen") and any other lender which becomes a signatory
thereto as provided in Section 12.06 of the Senior Credit Agreement
(individually, together with its successors and assigns, a "LENDER" and,
collectively, the "LENDERS"); and BMO, in its capacity as agent for the Lenders
(in such capacity, together with its successors in such capacity, the "AGENT").

                                    RECITALS:

     A. Borrower, Bank of Montreal, in its individual capacity and in its
capacity as Agent for the Lenders, as such term is defined in the Senior Credit
Agreement and in its capacity as Agent, "Senior Agent"), Soc-Gen, SCI and any
other lender which becomes a signatory to the Senior Credit Agreement
(collectively, the "Senior Lenders") are parties to that certain Amended and
Restated Credit Agreement dated as of February 17, 2000, (the "Senior Credit
Agreement"); all capitalized terms used but not defined herein shall have the
meanings assigned to them in the Senior Credit Agreement.

     B. Borrower has, on even date herewith, entered into that certain
Subordinated Credit Agreement (the "Subordinated Credit Agreement") with Shell
Capital, Inc. (in its capacity as a subordinated lender, together with any
successors and assigns in such capacity, herein called "Sub-Lender").

     C. Brigham Exploration Company ("Brigham Exploration") intends to, on even
date herewith, prepay the "Obligations," as such term is defined in the
Indenture in accordance with the Securities and Note Acquisition Agreement dated
of even date herewith between Brigham Exploration, Borrower, ECT Merchant
Investment Corp. ("ECT"), and Joint Energy Development Investments II Limited
Partnership ("JEDI-II"); and ECT and JEDI-II shall reassign, grant and convey
the Term ORRI to Borrower.

     D. Borrower, Brigham Exploration, the Guarantors, Sub-Lender and Senior
Lenders desire to enter into this First Amendment in order to recognize the new
Subordinated Debt and to amend certain provisions of the Senior Credit Agreement
and other Loan Documents.

     NOW, THEREFORE, in consideration of the premises, covenants and agreements
contained herein, the parties hereto hereby agree as follows:

     Section 1. AMENDMENTS TO SENIOR CREDIT AGREEMENT. The Senior Credit
Agreement is amended hereby as follows:

<PAGE>

     A. The term "Subordinated Debt", as defined in or referred to in the Senior
Credit Agreement or any other Loan Documents, shall be replaced and amended to
read as follows:

     "SUBORDINATED DEBT" shall mean any Debt borrowed or permitted to be
     borrowed under the Subordinated Credit Agreement, with such Debt to be
     subordinated to the Indebtedness pursuant to the Subordination Agreement.

     B. The term "Indenture", as defined in or referred to in the Senior Credit
Agreement or any other Loan Documents, shall be replaced and amended to read as
follows:

     "SUBORDINATED CREDIT AGREEMENT" shall mean that certain Subordinated Credit
     Agreement dated as of October 31, 2000, by and between Sub-Lender and
     Borrower, as same may hereafter be amended, restated, modified or replaced.

     C. The term "Subordination Agreement", as defined in or referred to in the
Senior Credit Agreement or any other Loan Documents, shall be replaced and
amended to read as follows:

     "SUBORDINATION AGREEMENT" shall mean that certain Intercreditor and
     Subordination Agreement dated as of October 31, 2000 and from time to time
     amended, restated, modified, or replaced, among Borrower, Sub-Lender and
     Senior Agent, for the benefit of the Senior Lenders.

     D. By inserting the following definition where alphabetically appropriate:

     "SUB-LENDER" shall mean Shell Capital, Inc. (in its capacity as a
     subordinated lender), together with any successors and assigns in such
     capacity.

     E. All references to the terms "Subordinated Debt," "Subordinated Credit
Agreement," "Subordination Agreement" and "Sub-Lender" wherever found in the
Senior Credit Agreement or other Loan Documents shall have the meanings assigned
to them in this First Amendment.

     F. The last sentence in the definition of "Consolidated Net Income" in
Section 1.02 of the Senior Credit Agreement shall be deleted in its entirety.

     G. All references to the terms "ECT Merchant," "JEDI-II," "Term ORRI" and
"Securities Purchase Agreement" shall be deleted from the Senior Credit
Agreement or any other Loan Documents.

                                       2
<PAGE>

     Section 2. CONSENTS AND WAIVER.

     A. The Senior Lenders hereby consent to the prepayment, in part or in full,
of the Subordinated Debt, as such term was defined prior to giving effect hereto
and the "Obligations," as such term was defined in the Indenture.

     B. The Senior Lenders consent to the Subordinated Credit Agreement and the
incurrence of Subordinated Debt thereunder and to the other "Loan Documents" as
defined therein; provided that borrowings thereunder, other than borrowings to
pay interest, shall not exceed $20,000,000 at any one time outstanding.

     C. The BMO/Soc-Gen Lenders hereby waive their right to determine the Target
Asset Value as of the First Asset Valuation Date.

     Section 3. CONDITIONS PRECEDENT. This First Amendment shall become binding
upon receipt by the Agent of the following documents and satisfaction of the
other conditions provided in this Section 3, each of which must be satisfactory
to the Agent in form and substance:

     A. counterparts of this First Amendment executed by the Borrower, Brigham
Exploration, the Guarantors, the Agent, the Senior Lenders and the Sub-Lender;

     B. counterparts of the New Mortgage executed by the Borrower;

     C. certificates of the Secretary or an Assistant Secretary of the Borrower,
Brigham Exploration and each of the Guarantors setting forth for each of them
(i) the resolutions of its board of directors or managers (or if such Guarantor
is a partnership, resolutions of the general partner of such partnership), as
applicable, with respect to the authorization to execute and deliver this First
Amendment and consummate the transactions contemplated hereby; (ii) the
Responsible Officer of such entity authorized to sign this First Amendment, and
(iii) the signature of such authorized Responsible Officer of such entity;

     D. a First Amendment to Amended and Restated Guaranty Agreement executed by
Brigham Exploration;

     E. the Intercreditor and Subordination Agreement executed by Brigham
Exploration, Borrower, each Guarantor and Shell Capital, Inc., individually and
as agent for the Sub-Lender as defined therein;

     F. an opinion of in-house counsel to Borrower substantially in the form
attached hereto as EXHIBIT A;

     G. payment of the expenses of the Agent and the Senior Lenders in
accordance with Section 8.B hereof; and

                                       3
<PAGE>

     H. such other documents as Agent or its counsel may reasonably request.

     Section 4. REPRESENTATIONS AND WARRANTIES.

     A. Except as provided in subsection (iii) of this Section 4.A. or as
affected by the Subordinated Debt, the Subordinated Credit Agreement, or the
"Loan Documents" as defined therein, the Borrower hereby reaffirms that, as of
the date of this First Amendment, the representations and warranties made by the
Borrower and Brigham Exploration in the Senior Credit Agreement are true and
correct as though made on and as of the date hereof, and further, the Borrower
represents that,

          (i) as of the date hereof, no Default or Material Adverse Effect has
     occurred and is continuing except as previously disclosed to the Agent in
     writing;

          (ii) the execution, delivery and performance by the Borrower or the
     Guarantors of this First Amendment and the other Loan Documents and all
     instruments and documents to be delivered by the Borrower or the
     Guarantors, to the extent a party thereto, hereunder and thereunder and the
     creation of all Liens provided for herein and therein: (a) are within the
     Borrower's or such Guarantor's corporate power; (b) have been duly
     authorized by all necessary or proper corporate action, including the
     consent of stockholders, members and/or partners therein or thereof; (c)
     are not in contravention of any provision of the Borrower's or such
     Guarantor's certificate of incorporation, bylaws or similar organizational
     and/or governing documents; (d) will not violate (1) any law or regulation
     or (2) any order or decree of any court or governmental instrumentality;
     (e) will not conflict with or result in the breach or termination of,
     constitute a default under or accelerate any performance required by, any
     indenture, mortgage, deed of trust, lease, agreement or other instrument to
     which the Borrower or any of the Guarantors is a party or by which the
     Borrower or any of the Guarantors or any of their respective property is
     bound; (f) will not result in the creation or imposition of any Lien upon
     any of the property of the Borrower or the Guarantors other than those in
     favor of the Agent pursuant to the terms of this First Amendment and the
     other Loan Documents to be delivered in connection herewith; and (g) do not
     require the consent or approval of any governmental body, agency, authority
     or any other Person that has not been duly obtained, made or complied with
     prior to the date hereof. At or prior to the date hereof, each of this
     First Amendment and the other Loan Documents to be delivered in connection
     herewith shall have been duly executed and delivered for the benefit of or
     on behalf of the Borrower or the Guarantors, in each case to the extent a
     party thereto, and each shall then constitute a legal, valid and binding
     obligation of the Borrower or such Guarantor, enforceable against it in
     accordance with its terms; and

          (iii) notwithstanding the foregoing, the representations and
     warranties contained in the last sentence of Section 7.10(a) of the Senior
     Credit Agreement (and not those contained in the first two sentences) are
     reaffirmed with respect to the Mortgaged Property covered by or described
     in the New Mortgage.

                                       4
<PAGE>

     B. Each of the Borrower and the Guarantors further represents and warrants,
for itself only that it (i) is executing this First Amendment after consultation
with counsel of its own choosing, (ii) has read and understands the release
granted by Section 5 hereof, (iii) desires to execute this First Amendment and
(iv) has the requisite authority to enter into and be bound by this First
Amendment, including the release granted by Section 5 hereof.

     Section 5. RELEASE.

     A. DEFINED TERMS. As used in this section, the following terms shall have
the following meanings:

     "RELEASED CLAIMS" shall mean any and all claims (including without
limitation any liabilities, damages, demands and causes of action arising
therefrom), whether (a) at law or in equity, (b) on the alleged commission of a
tort, (c) on the alleged breach (or anticipatory breach or repudiation) of any
contract, duty, or warranty (whether oral or written, express or implied), (d)
on the alleged violation of any statute, tariff, or regulation (whether
promulgated by the United States, any state thereof, any foreign state or
country, or any other governmental agency or entity, wherever located), or (e)
on any other factual, legal or equitable theory, including without limitation,
any claim for damages of any type or nature for injunctive or other relief, for
attorney's fees, interest or any other liability whatsoever on any theory,
including without limitation any loss cost or damage in connection with or based
upon "lender liability", unfair dealing, duress, coercion, control or undue
influence, extortion or commercial bribery, breach of an implied covenant or
duty of good faith and fair dealing, material misrepresentation or omission,
overreaching, unconscionability, conflict of interest, bad faith, malpractice,
disparate bargaining position, detrimental reliance, promissory estoppel,
estoppel by deed, waiver, laches, or any other equitable theory, equitable
subordination, breach of fiduciary duty or any other duty, or tortuous
inducement to commit such breach, tortuous interference with contract or
prospective business relations, negligent performance of contractual
obligations, or other theories of negligence, negligent or intentional
infliction of emotional distress, slander, libel, other defamation, fraudulent
transfer, conversion, trespass to (or clouding the title of) property, usury,
violations of the racketeer influenced and corrupt organizations act, deceptive
trade practices, conspiracy, or any theory of liability as partners or joint
venturers, that any releasing party may have as of the date hereof against any
released party with respect to the lending relationship.

     "RELEASED PARTY" shall mean each of the Senior Lenders and their respective
predecessors, successors, assigns, directors, officers, partners, employees,
agents, attorneys, principals and Affiliates and all other Persons liable or who
might be claimed to be liable on their behalf (collectively, the "Released
Parties").

     "RELEASING PARTY" shall mean each of Brigham Exploration, Borrower, and the
Guarantors and their respective predecessors, successors, assigns, directors,
officers, partners, employees, agents, attorneys, principals, Affiliates and all
other Persons who might have a claim against any Released Party (collectively,
the "Releasing Parties").

                                       5
<PAGE>

     B. Each of the Releasing Parties desires and intends fully to compromise,
release and settle any and all of the Released Claims; and each of the Releasing
Parties hereby covenants, warrants and represents unto each of the Released
Parties that such Releasing Party does hereby FOREVER RELEASE, ACQUIT, WAIVE AND
DISCHARGE each of the Released Parties of and from the Released Claims and each
of the Releasing Parties hereby declares the same FOREVER RELEASED, ACQUITTED,
WAIVED, SETTLED AND DISCHARGED. This release is effective without regard to
whether (i) such Released Claims are known or unknown, (ii) damages arising out
of such Released Claims have yet accrued, (iii) such Released Claims arose
collaterally, directly, derivatively, or otherwise between the parties hereto or
(iv) an ordinary person in the same or similar circumstances would or would not,
through the exercise of due care, have discovered such claims by the date of
this First Amendment. In connection with the foregoing release:

          (i) Brigham Exploration, Borrower and each of the Guarantors
     represents and warrants that it has the full power and authority to perform
     the release granted in this section and that it has not in any manner made
     any assignment of any Released Claim to any third party.

          (ii) The release granted in this section will be effective upon
     execution of this First Amendment by all of the parties hereto.

          (iii) Each party executing this First Agreement understands and agrees
     that the release granted in this section is a full, final and complete
     release of the Released Claims and that such release may be pleaded as an
     absolute and final bar to any or all suits which may hereafter be filed or
     prosecuted by any one or more of the Releasing Parties or anyone claiming
     by, through or under any one or more of the Releasing Parties in respect of
     any of the matters released hereby, and that no recovery on account of the
     Released Claims may hereafter be had from any of the Released Parties; and
     that the consideration given for such release is not an admission of
     liability or fault on the part of any of the Released Parties (it being the
     express intent of the parties hereto to obtain peace of mind and avoid the
     expense and uncertainty of potential litigation), and that none of the
     Releasing Parties or those claiming by, through or under any of them will
     ever claim that it is.

     Section 6. LIMITATIONS. The amendments set forth herein are limited
precisely as written and shall not be deemed to (a) be a consent to, or waiver
or modification of, any other term or condition of the Senior Credit Agreement
or any of the other Loan Documents, or (b) prejudice any right or rights which
the Lenders or the Agent may now have or may have in the future under or in
connection with the Senior Credit Agreement or any of the other Loan Documents.
Except as expressly supplemented, amended or modified hereby, the terms and
provisions of the Senior Credit Agreement or any other Loan Documents are and
shall remain in full force and effect. In the event of a conflict between this
First Amendment and any of the foregoing documents, the terms of this First
Amendment shall be controlling.

                                       6
<PAGE>

     Section 7. NON-RELIANCE ON AGENT AND OTHER LENDERS. Each Lender
acknowledges and agrees that it has, independently and without reliance on the
Agent or any other Lender, and based on such documents and information as it has
deemed appropriate, made its own decision to enter into this First Amendment,
and that it will, independently and without reliance upon the Agent or any other
Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own analysis and decisions in taking or not
taking action under this First Amendment or the Senior Credit Agreement. The
Agent shall not be required to keep itself informed as to the performance or
observance by the Borrower of this First Amendment or any other Loan Document or
any other document referred to or provided for herein or therein or to inspect
the properties or books of the Borrower. Except for notices, reports and other
documents and information expressly required to be furnished to the Lenders by
the Agent hereunder and under the Senior Credit Agreement, the Agent shall not
have any duty or responsibility to provide any Lender with any credit or other
information concerning the affairs, financial condition or business of the
Borrower (or any of its Affiliates) which may come into the possession of the
Agent or any of its Affiliates. In this regard, each Lender acknowledges that
Weil, Gotshal & Manges LLP is acting in this transaction as special counsel to
the Agent only. Each Lender will consult with its own legal counsel to the
extent that it deems necessary in connection with this First Amendment and the
matters contemplated herein.

     Section 8. PAYMENT OF FEES AND EXPENSES; FORM OF PAYMENT.

     A. The Borrower agrees, whether or not the transactions contemplated hereby
are consummated, to pay all reasonable expenses of the Agent and the Lenders
(including, without limitation, all reasonable fees and disbursements of counsel
and other outside consultants for the Agent and/or the Lenders) in connection
with the negotiation, investigation, preparation, execution and delivery of,
recording and filing of, preservation of rights under and enforcement of this
First Amendment and the other Loan Documents to be delivered in connection
herewith.

     B. All payments to be made by the Borrower under this First Amendment shall
be made in Dollars, in immediately available funds, to the Agent at such account
as the Agent shall specify by notice in accordance with Section 4.01 of the
Senior Credit Agreement.

     Section 9. GOVERNING LAW. This First Amendment and the rights and
obligations of the parties hereunder and under the Senior Credit Agreement shall
be construed in accordance with and be governed by the laws of the State of
Texas and the United States of America.

     Section 10. DESCRIPTIVE HEADINGS, ETC. The descriptive headings of the
several Sections of this First Amendment are inserted for convenience only and
shall not be deemed to affect the meaning or construction of any of the
provisions hereof.

                                       7
<PAGE>

     Section 11. COUNTERPARTS. This First Amendment may be executed in any
number of counterparts and by different parties on separate counterparts and all
of such counterparts shall together constitute one and the same instrument.

     Section 12. SUCCESSORS: This First Amendment shall be binding upon and
shall enure to the benefit of Senior Lenders, Brigham Exploration, Borrower,
Guarantors and their respective permitted successors and assigns.

     Section 13. BENEFICIARY: Sub-Lender is an intended third party beneficiary
of this First Amendment.

                                       8
<PAGE>

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

     NOTICE PURSUANT TO TEX. BUS. & COMM. CODE SS.26.02

     THIS FIRST AMENDMENT AND OTHER LOAN DOCUMENTS EXECUTED BY ANY OF THE
PARTIES BEFORE OR SUBSTANTIALLY CONTEMPORANEOUSLY WITH THE EXECUTION HEREOF
TOGETHER CONSTITUTE A WRITTEN LOAN AGREEMENT AND REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENT BETWEEN THE PARTIES.

                             Brigham Oil & Gas, L.P.
                             By:  Brigham, Inc., its General Partner

                             By: /s/ Curtis F. Harrell
                             Name:   Curtis F. Harrell
                             Title:  Chief Financial Officer

                             Bank of Montreal, individually and
                             as Agent for the Senior Lenders

                             By: /s/ Thomas E. McGraw
                             Name:   Thomas E. McGraw
                             Title:  Director

                             Societe Generale, Southwest Agency

                             By: /s/ Mark A. Cox
                             Name:   Mark A. Cox
                             Title:  Director

                                       9
<PAGE>

                             Shell Capital Inc., individually
                             (as a Senior Lender and as Sub-Lender),
                             and as Agent for Sub-Lenders

                             By: /s/ Robert L. Roberts
                             Name:   Robert L. Roberts
                             Title:  Vice President

                             Brigham Exploration Company

                             By: /s/ Curtis F. Harrell
                             Name:   Curtis F. Harrell
                             Title:  Chief Financial Officer

                             Brigham, Inc.

                             By: /s/ Curtis F. Harrell
                             Name:   Curtis F. Harrell
                             Title:  Chief Financial Officer

                             Brigham Holdings I, LLC

                             By: /s/ Ben M. Brigham
                             Name:   Ben M. Brigham
                             Title:  President

                             Brigham Holdings II, LLC

                             By: /s/ Ben M. Brigham
                             Name:   Ben M. Brigham
                             Title:  President

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]