Document:

exv4w3

 

EXHIBIT 4.3

[Face of Note]

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE)
OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE
TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (4) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

     THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS
NOTE, THE GUARANTEES ENDORSED HEREON, NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON, BY
ITS ACCEPTANCE HEREOF, AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE
DATE WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON
WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON) (THE
“RESALE RESTRICTION TERMINATION DATE”), EXCEPT THAT THE NOTES AND GUARANTEES MAY BE
TRANSFERRED (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES AND THE GUARANTEES ENDORSED
THEREON ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A

 

UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, OR (E)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (1)
PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE
RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (2) IN EACH OF THE FOREGOING CASES, TO REQUIRE
THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

 

CUSIP 109178AA1

			
	 
	No. 1
	 	$125,000,000

BRIGHAM EXPLORATION COMPANY

9 5/8% Senior Notes due 2014

     Brigham Exploration Company, a Delaware corporation (the “Company”), which term
includes any successor under the Indenture hereinafter referred to, for value received, promises to
pay to CEDE & CO., or its registered assigns, the principal sum of One Hundred Twenty Five Million
($125,000,000) UNITED STATES DOLLARS on May 1, 2014.

Interest Payment Dates: May 1 and November 1 of each year, commencing November 1, 2006.

Regular Record Dates: April 15 and October 15 of each year.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

Date of Issuance: April 20, 2006

 

     IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers.

	 	 	 	 	 	 	 
	 	 	BRIGHAM EXPLORATION COMPANY, a
	 	 	Delaware corporation
	 
	 	 	By:	 	/s/ Ben M. Brigham
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ben M. Brigham
	 

	 	 	 	Title:
	 	Chief Executive Officer, President and
	 

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

	 	 	 	Name:
	 	Eugene B. Shepherd, Jr.
	 

	 	 	 	Title:
	 	 Executive Vice President and Chief
	 

	 	 	 	 	 	Financial Officer

 

Trustee’s Certificate of Authentication

     This is one of the 9 5/8% Senior Notes due 2014 described in the within-mentioned Indenture.

	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.,
	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Timothy P. Mowdy
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

Date: April 20, 2006

 

[Reverse Side of Note]

BRIGHAM EXPLORATION COMPANY

9 5/8% Senior Notes due 2014

     Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. Interest. The Company promises to pay interest on the principal amount of this
Note at 9.625% per annum from the date hereof until maturity and shall pay Additional Interest, if
any, as provided in the Registration Rights Agreement, dated April 20, 2006 referred below. The
Company shall pay interest and Additional Interest, if any, semi-annually in arrears on May 1 and
November 1 of each year, or if any such day is not a Business Day, on the next succeeding Business
Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from the most
recent date to which interest has been paid on the Notes (or one or more Predecessor Notes) or, if
no interest has been paid, from the date of original issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided further that the first Interest
Payment Date shall be November 1, 2006. The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from
time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest and Additional Interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months. If a payment date is not a
Business Day, payment may be made on the next succeeding day that is a Business Day, and no
interest shall accrue on such payment for the intervening period.

     2. Method of Payment. The Company shall pay interest on the Notes (except defaulted
interest and Additional Interest, if any) to the Persons in whose name this Note (or one or more
Predecessor Notes) is registered at the close of business on the April 15th or October 15th
immediately preceding the Interest Payment Date, even if such Notes are canceled after such record
date and on or before such Interest Payment Date, except as provided in Section 2.13 of the
Indenture with respect to defaulted interest. The Company shall pay all Additional Interest, if
any, on the dates of its choosing and in the amounts set forth in the Registration Rights
Agreement. The Notes shall be payable as to principal, premium, if any, and interest and
Additional Interest, if any, at the office or agency of the Company maintained for such
purpose, or, at the option of the Company, payment of interest and Additional Interest, if
any, may be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately available funds
shall be required with respect to principal of and interest, premium, if any, on, all Global Notes
and all other Notes the Holders of which shall have provided wire transfer instructions to the
Company or the Paying

 

Agent. Such payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

     3. Paying Agent and Registrar. Initially, Wells Fargo Bank, N.A., the Trustee under
the Indenture, shall act as Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

     4. Indenture. The Company issued the Notes under an Indenture dated as of April 20,
2006 (the “Indenture”) among the Company, the Initial Guarantors and the Trustee. The
terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended. The Notes are subject to all such terms,
and Holders are referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling. The Indenture pursuant to which this
Note is issued provides that an unlimited amount of Additional Notes may be issued thereunder,
subject to compliance with the covenants therein.

     5. Optional Redemption. (a) On or after May 1, 2010, the Company may redeem all or
a portion of the Notes, on not less than 30 nor more than 60 days’ prior notice, in amounts of
$1,000 or whole multiples of $1,000 in excess thereof at the following redemption prices (expressed
as percentages of the principal amount), set forth below plus accrued and unpaid interest, if any,
thereon, to the applicable redemption date (subject to the rights of holders of record on relevant
record dates to receive interest due on an interest payment date), if redeemed during the
twelve-month period beginning on May 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Redemption Price	 
	2010
	 	 	104.813	%
	2011
	 	 	102.406	%
	2012 and thereafter
	 	 	100.000	%

     (b) In addition, at any time and from time to time prior to May 1, 2009, the Company may use
the net proceeds of one or more Equity Offerings to redeem up to an aggregate of 35% of the
aggregate principal amount of Notes issued under the Indenture (including the principal amount of
any Additional Notes issued under the Indenture) at a redemption price equal to 109.625% of the
aggregate principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to the
redemption date (subject to the rights of holders of record on relevant record dates to receive
interest due on an interest payment date); provided that this redemption provision shall not be
applicable with respect to any transaction that results in a Change of Control. At least 65% of
the aggregate principal amount of Notes (including the principal amount of any Additional Notes
issued under the Indenture) must remain outstanding immediately after the occurrence of such
redemption. In order to effect this redemption, the Company must mail a notice of redemption no
later than 30 days after the closing of the related Equity Offering and must complete such
redemption within 60 days of the closing of the Equity Offering.

 

     6. Mandatory Redemption. The Company shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

     7. Repurchase at Option of Holders.

     (a) Upon the occurrence of a Change of Control, each Holder may require the Company to
purchase such Holder’s Notes in whole or in part in amounts of $1,000 or whole multiples of $1,000
in excess thereof, at a purchase price in cash in an amount equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, to the date of purchase, pursuant to a Change of
Control Offer in accordance with the procedures set forth in the Indenture.

     (a) Under certain circumstances described in the Indenture, the Company will be required to
apply the proceeds of Asset Sales to the repayment of the Notes and/or Pari Passu Indebtedness.

     8. Selection and Notice of Redemption. If less than all of the Notes are to be
redeemed or purchased in an offer to purchase at any time, the Trustee shall select the Notes to be
redeemed or purchased among the Holders of the Notes not more than 60 days prior to the redemption
date in compliance with the requirements of the principal national securities exchange, if any, on
which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or in
accordance with any other method the Trustee considers fair and reasonable. Redemptions pursuant
to Section 3.07(b) of the Indenture shall be made on a pro rata basis or on as nearly a pro rata
basis as practicable (subject to the provisions of the Depositary). In the event of partial
redemption by lot, the particular Notes to be redeemed shall be selected, unless otherwise provided
herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee from the
outstanding Notes not previously called for redemption. Notices of redemption may not be
conditional. If any Note is to be redeemed in part only, the notice of redemption that relates to
that Note will state the portion of the principal amount thereof to be redeemed. A new Note in
principal amount equal to the unredeemed portion of the original Note will be issued in the name of
the Holder thereof upon cancellation of the original Note. Notes called for redemption become due
on the date fixed for redemption. On and after the redemption date, interest and Addditional
Interest, if any, shall cease to accrue on Notes or portions of them called for redemption.

     9. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and whole multiples of $1,000 in excess thereof. The transfer
of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar
and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder to pay any taxes and fees required by law
or permitted by the Indenture. The Company is not required to transfer or exchange any Note
selected for redemption. Also, the Company is not required to transfer or exchange any Note for a
period of 15 days before a selection of Notes to be redeemed.

     10. Persons Deemed Owners. The registered Holder of a Note will be treated as its
owner for all purposes.

 

     11. Amendment, Supplement and Waiver. The Indenture or the Notes may be amended or
supplemented only as provided in the Indenture.

     12. Defaults. In the case of an Event of Default arising from certain events of
bankruptcy, insolvency or reorganization specified in the Inndenture, with respect to the Company
or any Significant Subsidiary, all outstanding Notes will become due and payable immediately
without further action or notice. If any other Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may, and
the Trustee at the request of such Holders shall, declare all unpaid principal of, premium, if any,
and accrued interest on all Notes to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by the Holders of the Notes) and upon any such declaration,
such principal, premium, if any, and interest shall become due and payable immediately. The
Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or interest) if it
determines that withholding notice is in their interest. The Holders of not less than a majority
in aggregate principal amount of the Notes outstanding by notice to the Trustee may on behalf of
the Holders of all outstanding Notes waive any past Default and its consequences under the
Indenture except a Default (1) in the payment of the principal of, premium, if any, or interest on
any Note (which may only be waived with the consent of each Holder of Notes affected) or (2) in
respect of a covenant or provision which under the Indenture cannot be modified or amended without
the consent of the Holder of each Note affected by such modification or amendment.

     13. Trustee Dealings with the Company. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Company or its
Affiliates, and may otherwise deal with the Company or its            Affiliates, as if it were
not the Trustee.

     14. No Recourse Against Others. No director, officer, employee, member or
stockholder of the Company or any Restricted Subsidiary, as such, will have any liability for any
obligations of the Company or the Restricted Subsidiaries under the Notes, the Indenture or the
Guarantees to which they are a party, or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases
all such liability. The waiver and release are part of the consideration for issuance of the
Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

     15. Authentication. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     16. Additional Rights of Holders of Restricted Global Notes and Restricted Definitive
Notes. In addition to the rights provided to Holders under the Indenture, Holders of
Restricted Global Notes and Restricted Definitive Notes issued on the Issue Date shall have all the
rights set forth in the Registration Rights Agreement dated as of April 20, 2006, among the
Company, the Guarantors and the parties named on the signature pages thereof.

     17. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP

 

numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon.

     18. Governing Law. This Note shall be governed by, and construed in accordance with,
the laws of the State of New York, without giving effect to the conflicts of laws principles
thereof.

     The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

BRIGHAM EXPLORATION COMPANY

6300 Bridge Point Parkway

Building Two, Suite 500

Austin, Texas 78730

Facsimile: (512) 427-3400

Attention: Warren J. Ludlow, General Counsel

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

	 	 	 	 	 	 	 	 
	(I) or (we) assign and transfer this Note to:	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	(Insert assignee’s legal name)	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	(Insert
	 	 	 
	 	 	 	assignee’s soc. sec. or tax I.D. no.)	 	 
	 
	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	(Print
	 	 	 
	 	 	 	or type assignee’s name, address and zip code)	 	 
	 
	 	 	 	 	 	 	 
	and irrevocably appoint
	 	 	 	 	 	 	 
	 	 	 	 

to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the
face of this Note)

Signature Guarantee*:

 

* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.11 or
4.20 of the Indenture, check the appropriate box below:

[ ] Section 4.11       [ ] Section 4.20

     If you want to elect to have only part of the Note purchased by the Company pursuant
to Section 4.11 or Section 4.20 of the Indenture, state the amount you elect to have purchased:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	$	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Your
	 	Signature:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	(Sign exactly as your name appears on the
face of this Note)
	 

	 	 	 	 	 	Tax
	 	Identification No.:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

Signature Guarantee*:                                        

 

* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Principal Amount	 
	 	 	Amount of Decrease	 	 	Amount of Increase	 	 	Maturity of this	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	Global Following	 
	 	 	at Maturity of this	 	 	at Maturity of this	 	 	such Decrease (or	 
	Date of Exchange	 	Global Note	 	 	Global Note	 	 	Increase)exv4w4

 

EXHIBIT 4.4

[Face of Note]

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE)
OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE
TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (4) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

          THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS
NOTE, THE GUARANTEES ENDORSED HEREON, NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON, BY
ITS ACCEPTANCE HEREOF, AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE
DATE WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON
WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON) (THE
“RESALE RESTRICTION 
TERMINATION DATE”), EXCEPT THAT THE NOTES AND GUARANTEES MAY BE TRANSFERRED (A) TO THE
COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE NOTES AND THE GUARANTEES ENDORSED THEREON ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A

 

 

UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES
TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER (1) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION
COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE
(E) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (2) IN EACH OF
THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE
IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

 

CUSIP U6224KAA7

			
	 	 	 
	No. 1
	 	$0

BRIGHAM EXPLORATION COMPANY

9  5/8% Senior Notes due 2014

          Brigham Exploration Company, a Delaware corporation (the “Company”), which term
includes any successor under the Indenture hereinafter referred to, for value received, promises to
pay to CEDE & CO., or its registered assigns, the principal sum of Zero ($0) UNITED STATES DOLLARS
on May 1, 2014.

Interest Payment Dates: May 1 and November 1 of each year, commencing November 1, 2006.

Regular Record Dates: April 15 and October 15 of each year.

          Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

Date of Issuance: April 20, 2006

 

 

          IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	BRIGHAM EXPLORATION COMPANY, a	 	 
	 	 	Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Ben M. Brigham	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ben M. Brigham	 	 
	 

	 	 	 	Title:
	 	Chief Executive Officer, President and Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Eugene B. Shepherd, Jr.	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	Title:
	 	Executive Vice President and Chief
	 	 
	 

	 	 	 	 	 	Financial Officer	 	 

 

 

Trustee’s Certificate of Authentication

     This is one of the 9  5/8% Senior Notes due 2014 described in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Timothy P. Mowdy	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 
	Date: April 20, 2006
	 	 	 	 	 	 

 

 

[Reverse Side of Note]

BRIGHAM EXPLORATION COMPANY

9  5/8% Senior Notes due 2014

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest. The Company promises to pay interest on the principal amount of this
Note at 9.625% per annum from the date hereof until maturity and shall pay Additional Interest, if
any, as provided in the Registration Rights Agreement, dated April 20, 2006 referred below. The
Company shall pay interest and Additional Interest, if any, semi-annually in arrears on May 1 and
November 1 of each year, or if any such day is not a Business Day, on the next succeeding Business
Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from the most
recent date to which interest has been paid on the Notes (or one or more Predecessor Notes) or, if
no interest has been paid, from the date of original issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided further that the first Interest
Payment Date shall be November 1, 2006. The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from
time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest and Additional Interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months. If a payment date is not a
Business Day, payment may be made on the next succeeding day that is a Business Day, and no
interest shall accrue on such payment for the intervening period.

          2. Method of Payment. The Company shall pay interest on the Notes (except defaulted
interest and Additional Interest, if any) to the Persons in whose name this Note (or one or more
Predecessor Notes) is registered at the close of business on the April 15th or October 15th
immediately preceding the Interest Payment Date, even if such Notes are canceled after such record
date and on or before such Interest Payment Date, except as provided in Section 2.13 of the
Indenture with respect to defaulted interest. The Company shall pay all Additional Interest, if
any, on the dates of its choosing and in the amounts set forth in the Registration Rights
Agreement. The Notes shall be payable as to principal, premium, if any, and interest and
Additional Interest, if any, at the office or agency of the Company maintained for such
purpose, or, at the option of the Company, payment of interest and Additional Interest, if
any, may be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately available funds
shall be required with respect to principal of and interest, premium, if any, on, all Global Notes
and all other Notes the Holders of which shall have provided wire transfer instructions to the
Company or the Paying

 

 

Agent. Such payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

          3. Paying Agent and Registrar. Initially, Wells Fargo Bank, N.A., the Trustee under
the Indenture, shall act as Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

          4. Indenture. The Company issued the Notes under an Indenture dated as of April 20,
2006 (the “Indenture”) among the Company, the Initial Guarantors and the Trustee. The
terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended. The Notes are subject to all such terms,
and Holders are referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling. The Indenture pursuant to which this
Note is issued provides that an unlimited amount of Additional Notes may be issued thereunder,
subject to compliance with the covenants therein.

          5. Optional Redemption. (a) On or after May 1, 2010, the Company may redeem all or
a portion of the Notes, on not less than 30 nor more than 60 days’ prior notice, in amounts of
$1,000 or whole multiples of $1,000 in excess thereof at the following redemption prices (expressed
as percentages of the principal amount), set forth below plus accrued and unpaid interest, if any,
thereon, to the applicable redemption date (subject to the rights of holders of record on relevant
record dates to receive interest due on an interest payment date), if redeemed during the
twelve-month period beginning on May 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Redemption Price	 
	2010
	 	 	104.813	%
	2011
	 	 	102.406	%
	2012 and thereafter
	 	 	100.000	%

          (b) In addition, at any time and from time to time prior to May 1, 2009, the Company may use
the net proceeds of one or more Equity Offerings to redeem up to an aggregate of 35% of the
aggregate principal amount of Notes issued under the Indenture (including the principal amount of
any Additional Notes issued under the Indenture) at a redemption price equal to 109.625% of the
aggregate principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to the
redemption date (subject to the rights of holders of record on relevant record dates to receive
interest due on an interest payment date); provided that this redemption provision shall not be
applicable with respect to any transaction that results in a Change of Control. At least 65% of
the aggregate principal amount of Notes (including the principal amount of any Additional Notes
issued under the Indenture) must remain outstanding immediately after the occurrence of such
redemption. In order to effect this redemption, the Company must mail a notice of redemption no
later than 30 days after the closing of the related Equity Offering and must complete such
redemption within 60 days of the closing of the Equity Offering.

 

 

          6. Mandatory Redemption. The Company shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

          7. Repurchase at Option of Holders.

          (a) Upon the occurrence of a Change of Control, each Holder may require the Company to
purchase such Holder’s Notes in whole or in part in amounts of $1,000 or whole multiples of $1,000
in excess thereof, at a purchase price in cash in an amount equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, to the date of purchase, pursuant to a Change of
Control Offer in accordance with the procedures set forth in the Indenture.

          (a) Under certain circumstances described in the Indenture, the Company will be required to
apply the proceeds of Asset Sales to the repayment of the Notes and/or Pari Passu Indebtedness.

          8. Selection and Notice of Redemption. If less than all of the Notes are to be
redeemed or purchased in an offer to purchase at any time, the Trustee shall select the Notes to be
redeemed or purchased among the Holders of the Notes not more than 60 days prior to the redemption
date in compliance with the requirements of the principal national securities exchange, if any, on
which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or in
accordance with any other method the Trustee considers fair and reasonable. Redemptions pursuant
to Section 3.07(b) of the Indenture shall be made on a pro rata basis or on as nearly a pro rata
basis as practicable (subject to the provisions of the Depositary). In the event of partial
redemption by lot, the particular Notes to be redeemed shall be selected, unless otherwise provided
herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee from the
outstanding Notes not previously called for redemption. Notices of redemption may not be
conditional. If any Note is to be redeemed in part only, the notice of redemption that relates to
that Note will state the portion of the principal amount thereof to be redeemed. A new Note in
principal amount equal to the unredeemed portion of the original Note will be issued in the name of
the Holder thereof upon cancellation of the original Note. Notes called for redemption become due
on the date fixed for redemption. On and after the redemption date, interest and Addditional
Interest, if any, shall cease to accrue on Notes or portions of them called for redemption.

          9. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and whole multiples of $1,000 in excess thereof. The transfer
of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar
and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder to pay any taxes and fees required by law
or permitted by the Indenture. The Company is not required to transfer or exchange any Note
selected for redemption. Also, the Company is not required to transfer or exchange any Note for a
period of 15 days before a selection of Notes to be redeemed.

          10. Persons Deemed Owners. The registered Holder of a Note will be treated as its
owner for all purposes.

 

 

          11. Amendment, Supplement and Waiver. The Indenture or the Notes may be amended or
supplemented only as provided in the Indenture.

          12. Defaults. In the case of an Event of Default arising from certain events of
bankruptcy, insolvency or reorganization specified in the Inndenture, with respect to the Company
or any Significant Subsidiary, all outstanding Notes will become due and payable immediately
without further action or notice. If any other Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may, and
the Trustee at the request of such Holders shall, declare all unpaid principal of, premium, if any,
and accrued interest on all Notes to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by the Holders of the Notes) and upon any such declaration,
such principal, premium, if any, and interest shall become due and payable immediately. The
Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or interest) if it
determines that withholding notice is in their interest. The Holders of not less than a majority
in aggregate principal amount of the Notes outstanding by notice to the Trustee may on behalf of
the Holders of all outstanding Notes waive any past Default and its consequences under the
Indenture except a Default (1) in the payment of the principal of, premium, if any, or interest on
any Note (which may only be waived with the consent of each Holder of Notes affected) or (2) in
respect of a covenant or provision which under the Indenture cannot be modified or amended without
the consent of the Holder of each Note affected by such modification or amendment.

          13. Trustee Dealings with the Company. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Company or its
Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were
not the Trustee.

          14. No Recourse Against Others. No director, officer, employee, member or
stockholder of the Company or any Restricted Subsidiary, as such, will have any liability for any
obligations of the Company or the Restricted Subsidiaries under the Notes, the Indenture or the
Guarantees to which they are a party, or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases
all such liability. The waiver and release are part of the consideration for issuance of the
Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

          15. Authentication. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

          16. Additional Rights of Holders of Restricted Global Notes and Restricted Definitive
Notes. In addition to the rights provided to Holders under the Indenture, Holders of
Restricted Global Notes and Restricted Definitive Notes issued on the Issue Date shall have all the
rights set forth in the Registration Rights Agreement dated as of April 20, 2006, among the
Company, the Guarantors and the parties named on the signature pages thereof.

          17. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP

 

 

numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon.

          18. Governing Law. This Note shall be governed by, and construed in accordance with,
the laws of the State of New York, without giving effect to the conflicts of laws principles
thereof.

          The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

	 	 	 
	 

	 	BRIGHAM EXPLORATION COMPANY
	 

	 	6300 Bridge Point Parkway
	 

	 	Building Two, Suite 500
	 

	 	Austin, Texas 78730
	 

	 	Facsimile: (512) 427-3400
	 

	 	Attention: Warren J. Ludlow, General Counsel

 

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below:

	 	 	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Insert assignee’s legal name)	 	 
	 
	 	 	 	(Insert
	 	 	 w
	 

	assignee’s soc.sec. or tax I.D. no.)
	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	(Print
	 	 	 
	 

	or type assignee’s name, address and zip code)	 	 
	 
	 	 
	and irrevocably appoint                                                                                                                                            

to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Date:                                        
	 	 	 	 	 	 	 	 
	 

	 	 	 	Your Signature:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as your name appears on the
face of this Note)	 	 
	Signature Guarantee*:
	 	 	 	 	 	 	 	 

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Note purchased by the Company pursuant to Section 4.11 or
4.20 of the Indenture, check the appropriate box below:

[ ] Section 4.11            [ ] Section 4.20

          If you want to elect to have only part of the Note purchased by the Company pursuant
to Section 4.11 or Section 4.20 of the Indenture, state the amount you elect to have purchased:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Date:                                        

	 	$                     	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	          (Sign exactly as your name appears on the	 	 
	 	 	 	 	          face of this Note)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Tax Identification No.:	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature Guarantee*:                    
	 	 	 	 	 	 	 	 

 

* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

          The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Principal Amount
	 

	 	Amount of Decrease
	 	Amount of Increase
	 	Maturity of this
	 

	 	in Principal Amount
	 	in Principal Amount
	 	Global Following
	 

	 	at Maturity of this
	 	at Maturity of this
	 	such Decrease (or
	Date of Exchange

	 	Global Note
	 	Global Note
	 	Increase)

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