Document:

Exhibit 10.7

                                           2000 ISO NO. _________________

                           CONTINENTAL RESOURCES, INC.

                             2000 STOCK OPTION PLAN

                        INCENTIVE STOCK OPTION AGREEMENT

Participant
Name:_________________________          Grant Date:____________________________

                                                Vesting Schedule
Shares Subject to                                          Percent of Stock
Incentive Stock Option: _______       Exercise Dates       Option Exercisable

Expiration Date: __________, 2010     _____________, 2001                 20%
                                      _____________, 2002                 40%
Option Price:__________________       _____________, 2003                 60%
                                      _____________, 2004                 80%
                                      _____________, 2005                100%

<PAGE>

                        INCENTIVE STOCK OPTION AGREEMENT
                     UNDER 2000 CONTINENTAL RESOURCES, INC.
                                STOCK OPTION PLAN

     THIS INCENTIVE STOCK OPTION AGREEMENT (the "Option Agreement"),  made as of
the grant date set forth on the cover page of this Option  Agreement (the "Cover
Page") at Enid,  Oklahoma by and between the participant named on the Cover Page
(the "Participant") and CONTINENTAL RESOURCES, INC. (the "Company"):

                              W I T N E S S E T H:

     WHEREAS,  the  Participant is an employee of the Company or a Subsidiary of
the Company and it is important to the Company that the Participant be
encouraged to remain in the employ of the Company; and

     WHEREAS,  in recognition of such facts,  the Company  desires to provide to
the  Participant an  opportunity  to purchase  shares of the common stock of the
Company, as hereinafter provided,  pursuant to the "Continental Resources,  Inc.
2000 Stock Option Plan" (the  "Plan"),  a copy of which has been provided to the
Participant; and

     WHEREAS,  any  capitalized  terms used but not defined herein have the same
meanings given them in the Plan.

     NOW,  THEREFORE,  in consideration of the mutual covenants  hereinafter set
forth and for good and valuable  consideration,  the Participant and the Company
hereby agree as follows:

     Section  1.  Grant  of  ISO  Option.  The  Company  hereby  grants  to  the
Participant  an incentive  stock option (the "ISO  Option")  intended to qualify
under Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"),
to  purchase  all or any part of the number of shares of its common  stock,  par
value $1.00 (the "Stock") set forth on the Cover Page,  under and subject to the
terms and conditions of this Option Agreement and the Plan which is incorporated
herein by reference and made a part hereof for all purposes.  The purchase price
for each share to be purchased  hereunder shall be the option price set forth on
the Cover Page (the "ISO Price").

     Section 2. Times of  Exercise  of ISO Option.  After,  and only after,  the
conditions   of  Section  9  hereof  have  been   satisfied  and  the  Company's
shareholders have approved the Plan in accordance with the provisions of Section
1.04 of the Plan, the  Participant  shall be eligible to exercise the ISO Option
pursuant  to the  vesting  schedule  set forth on the Cover  Page (the  "Vesting
Schedule").  If the  Participant's  employment  with  the  Company  (or with any
Subsidiary)  remains  full-time and  continuous at all times prior to any of the
exercise  dates  specified on the Cover Page (the  "Exercise  Dates"),  then the
Participant shall be entitled,  subject to the applicable provisions of the Plan
and this Option  Agreement  having been  satisfied,  to exercise on or after the
applicable  Exercise  Date,  on a  cumulative  basis,  the number of ISO Options
determined by multiplying the aggregate number of shares of Stock subject to the
ISO Option set forth on the Cover Page by the designated percentage set forth on
the Cover Page.

     Section 3. Term of ISO Option.  Subject to earlier termination as hereafter
provided, the ISO Option shall expire at the close of business on the expiration
date set forth on the Cover Page and may not be exercised  after such expiration
date; provided,  however, in no event shall the term of the ISO Option be longer
than ten years from the Date of Grant. At all times during the period commencing
with the date the ISO  Option is granted  to the  Participant  and ending on the
earlier of the  expiration  of the ISO Option or the date which is three  months
prior  to  the  date  the  ISO  Option  is  exercised  by the  Participant,  the
Participant must be an employee of either (i) the Company,  (ii) a Subsidiary of
the  Company,  or  (iii) a  corporation  or a  parent  or a  Subsidiary  of such
corporation  issuing or assuming an ISO Option in a transaction to which Section
424(a) of the Code applies.

     Section 4.  Nontransferability  of ISO Option.  Except as otherwise  herein
provided, the ISO Option shall not be transferable otherwise than by will or the
laws of descent and  distribution,  and the ISO Option may be exercised,  during
the lifetime of the Participant, only by the Participant. More particularly (but
without  limiting the  generality of the  foregoing),  the ISO Option may not be
assigned, transferred (except as provided above), pledged or hypothecated in any
way,  shall not be  assignable  by  operation of law and shall not be subject to
execution,  attachment, or similar process. Any attempted assignment,  transfer,
pledge,  hypothecation  or other  disposition of the ISO Option  contrary to the
provisions hereof shall be null and void and without effect.

     Section 5.  Employment.  So long as the Participant  shall continue to be a
full-time and continuous employee of the Company or a Subsidiary of the Company,
the ISO  Option  shall not be  affected  by any  change  of duties or  position.
Nothing  in  the  Plan  or in  this  Option  Agreement  shall  confer  upon  the
Participant  any right to continue in the employ of the Company or a  Subsidiary
of the  Company,  or  interfere  in any way with the right of the  Company  or a
Subsidiary of the Company to terminate the Participant's employment at any time.

     Section 6. Special Rules With Respect to ISO Options. With respect to
the ISO Option granted hereunder, the following special rules shall apply:

          (a) Annual  Limitation on Exercise of ISO Options.  Except as provided
     in  Section  8  herein,  in no event  during  any  calendar  year  will the
     aggregate  Fair Market  Value,  determined as of the time the ISO Option is
     granted, of the Stock for which the Participant may first have the right to
     exercise  under the ISO  Option  and any other  "incentive  stock  options"
     granted under all plans  qualified  under Section 422 of the Code which are
     sponsored by the Company or a Subsidiary of the Company exceed $100,000.

          (b)  Acceleration  of  Otherwise  Unexercisable  ISO Options on Death,
     Disability  or Other  Special  Circumstances.  The  Committee,  in its sole
     discretion, may permit (i) a Participant who terminates employment due to a
     Disability,  (ii) the personal representative of a deceased Participant, or
     (iii) any other  Participant who terminates  employment upon the occurrence
     of special  circumstances  (as determined by the Committee) to purchase all
     or any all or any part of the  shares  subject  to the ISO Option for which
     the  applicable  Exercise  Date(s) has not yet  occurred on the date of the
     Participant's death, termination of his employment due to a Disability,  or
     as the Committee otherwise so determines. With respect to shares subject to
     the ISO Option for which the applicable Exercise Dates have occurred or for
     which the Committee has permitted purchase in accordance with the foregoing
     provision,   the  Participant,   or  the   representative   of  a  deceased
     Participant,  shall  automatically  have the right to purchase  such shares
     within three months of such date of termination of employment,  one year in
     the case of a Participant suffering a Disability or three years in the case
     of a deceased Participant.

     Section 7. Method of Exercising ISO Option.

          (a) Procedures  for Exercise.  The manner of exercising the ISO Option
     herein  granted shall be by written  notice to the Secretary of the Company
     at the time the ISO Option, or part thereof, is to be exercised, and in any
     event prior to the  expiration  of the ISO Option.  Such notice shall state
     the election to exercise  the ISO Option,  the number of shares of Stock to
     be purchased  upon  exercise,  the form of payment to be used, and shall be
     signed by the person so exercising the ISO Option.

          (b) Form of  Payment.  Payment in full for  shares of Stock  purchased
     under this Option  Agreement  shall accompany the  Participant's  notice of
     exercise,  together  with  payment for any  applicable  withholding  taxes.
     Payment shall be made (i) in cash or by check, draft or money order payable
     to the  order of the  Company;  (ii) by  delivering  Stock or other  equity
     securities of the Company having a Fair Market Value on the date of payment
     equal to the  amount  of the  Option  Price,  but only to the  extent  such
     exercise  of an ISO Option  would not result in an  accounting  charge with
     respect to the  shares  used to pay the  exercise  price  unless  otherwise
     determined by the Committee; or (iii) a combination thereof. In addition to
     the foregoing  procedure which may be available for the exercise of the ISO
     Option, after the date on which the Company's stock is listed on a national
     securities exchange or the  NASDAQ/National  Market System or quoted on the
     over-the-counter  market by the National Association of Securities Dealers,
     the  Participant  may  deliver to the  Company a notice of  exercise  which
     includes  an  irrevocable  instruction  to the Company to deliver the stock
     certificate representing the shares of Stock being purchased, issued in the
     name of the Participant, to a broker approved by the Company and authorized
     to trade in the common stock of the  Company.  Upon receipt of such notice,
     the Company shall  acknowledge  receipt of the executed  notice of exercise
     and  forward  this notice to the  broker.  Upon  receipt of the copy of the
     notice which has been acknowledged by the Company,  and without waiting for
     issuance of the actual  stock  certificate  with respect to the exercise of
     the ISO Option,  the broker may sell the Stock or any portion thereof.  The
     broker  shall  deliver  directly to the Company  that  portion of the sales
     proceeds  sufficient to cover the ISO Price and withholding  taxes, if any.
     For all purposes of effecting  the exercise of the ISO Option,  the date on
     which the Participant gives the notice of exercise to the Company, together
     with  payment for the shares of Stock being  purchased  and any  applicable
     withholding taxes, shall be the "date of exercise." If a notice of exercise
     and payment are delivered at different times, the date of exercise shall be
     the date the Company first has in its  possession  both the notice and full
     payment as provided herein.

          (c)  Further  Information.  In the event the ISO Option is  exercised,
     pursuant to the foregoing provisions of this Section 7, by any person other
     than the Participant due to the death of the Participant, such notice shall
     also be  accompanied  by  appropriate  proof of the right of such person to
     exercise the ISO Option.  The notice so required shall be given by personal
     delivery to the  Secretary  of the Company or by  registered  or  certified
     mail,  addressed to the Company at 302 North Independence,  3rd Floor, Post
     Office Box 1032, Enid,  Oklahoma 73702, and it shall be deemed to have been
     given when it is so  personally  delivered  or when it is  deposited in the
     United States mail in an envelope  addressed to the Company,  as aforesaid,
     properly stamped for delivery as a registered or certified letter.

     Section 8.  Acceleration of ISO Option Upon Corporate Event. If the Company
shall,  pursuant  to action by its Board,  at any time  propose to  dissolve  or
liquidate or merge into,  consolidate with, or sell or otherwise transfer all or
substantially all of its assets to another corporation and provision is not made
pursuant to the terms of such  transaction  for the assumption by the surviving,
resulting or acquiring  corporation of outstanding ISO Options under this Option
Agreement,  or for the substitution of new options therefor, the Committee shall
cause written notice of the proposed  transaction to be given to the Participant
not less than forty days prior to the anticipated effective date of the proposed
transaction,  and the ISO Option shall  become 100% vested and,  prior to a date
specified  in such  notice,  which  shall be not more than ten days prior to the
anticipated  effective date of the proposed  transaction,  the Participant shall
have the right to exercise  the ISO Option to  purchase  any or all of the Stock
then subject to the ISO Option. The Participant,  by so notifying the Company in
writing,  may, in exercising  the ISO Option,  condition such exercise upon, and
provide  that  such  exercise  shall  become  effective  at  the  time  of,  but
immediately  prior to, the consummation of the  transaction,  in which event the
Participant need not make payment for the Stock to be purchased upon exercise of
the ISO  Option  until  five days  after  written  notice by the  Company to the
Participant  that the  transaction has been  consummated.  If the transaction is
consummated, the ISO Option, to the extent not previously exercised prior to the
date specified in the foregoing notice, shall terminate on the effective date of
such consummation.  If the transaction is abandoned, (i) any Stock not purchased
upon  exercise of the ISO Option shall  continue to be available for purchase in
accordance with the other  provisions of the Plan and this Option  Agreement and
(ii) to the extent  that any  portion of the ISO Option not  exercised  prior to
such  abandonment  shall have vested solely by operation of this Section 8, such
vesting  shall be deemed  annulled,  and the Vesting  Schedule  set forth on the
Cover Page shall be reinstituted, as of the date of such abandonment.

     Section 9. Change of Control;  Death of Harold Hamm. Promptly following the
first to occur of (a) a Change of  Control of the  Company,  or (b) the death of
Harold  Hamm if,  immediately  prior to the time of his death,  the  Controlling
Stockholders  were the  "beneficial  owners,"  as defined in Rule 3d-3 under the
Exchange  Act, of more than 35% of the total voting power of the Voting Stock of
the Company,  on a fully diluted basis, the Committee shall cause written notice
of such event to be given to each Participant and his or her outstanding Options
shall become 100% vested and thereafter each Participant shall have the right to
exercise all or any of his or her Options to purchase Capital Stock then subject
to his or her Options.

     Section 10. Securities Law Restrictions.  The ISO Option shall be exercised
and Stock  issued  only upon  compliance  with the  Securities  Act of 1933,  as
amended (the "Act"), and any other applicable  securities law, or pursuant to an
exemption  therefrom.  If deemed necessary by the Company to comply with the Act
or any applicable  laws or regulations  relating to the sale of securities,  the
Participant,  at the time of exercise and as a condition imposed by the Company,
shall  represent,  warrant and agree that the shares of Stock subject to the ISO
Option are being purchased for investment and not with any present  intention to
resell the same and without a view to distribution,  and the Participant  shall,
upon the request of the Company, execute and deliver to the Company an agreement
to  such  effect.  The  Participant  acknowledges  that  any  stock  certificate
representing  Stock  purchased  under such  circumstances  will be issued with a
restricted securities legend.

     Section 11.  Disqualifying  Disposition of Stock. If the Participant  shall
make a  disposition  (within the  meaning of Section  424(c) of the Code and the
rules and  regulations  thereunder)  of any  shares of Stock  covered by the ISO
Option  within one year after the date of  exercise  of the ISO Option or within
two years after the Date of Grant of the ISO  Option,  then in either such event
the Participant shall promptly notify the Company, by delivery of written notice
to the Secretary of the Company,  of (i) the date of such disposition,  (ii) the
number of shares of Stock  covered by the ISO Option which were  disposed of and
(iii) the price at which such shares of Stock were  disposed of or the amount of
any other consideration received on such disposition.  The Company may make such
provision  as it may  deem  appropriate  for  the  withholding  of any  required
federal, state or local taxes that it determines it may be obligated to withhold
or pay in connection  with the exercise of the ISO Option or the  disposition of
shares of Stock acquired upon exercise of the ISO Option.

     Section 12. Right of Company to Repurchase Stock.

          (a) Right to Repurchase.  In the event that the Participant  exercises
     the ISO  Option,  any shares of Stock  which are issued to the  Participant
     will be subject to the right of the Company to repurchase (the  "Repurchase
     Right") the Stock at its Fair Market Value as  determined by the Company in
     accordance with the terms of this Option Agreement upon such  Participant's
     termination  of employment  (whether  voluntary or  involuntary),  and such
     right,  unless sooner  terminated as provided in Subsection  (c) below,  to
     repurchase  shall  continue  for a  period  of  two  years  following  such
     termination of employment and upon such terms and conditions as the Company
     deems  appropriate or will be subject to a Stock Purchase  Agreement in the
     form which is applicable to the other shareholders of the Company.

          (b) Right to Pledge or Transfer  Stock.  After the exercise of the ISO
     Option,  the  Participant  shall not be  permitted to (i) pledge all or any
     portion  of the  Stock  as  security  for  any  debt or  obligation  of the
     Participant or (ii) transfer any Stock without the prior written consent of
     the Company (collectively the "Pledge/Transfer Restriction").

     Section 13. Obligation of Company to Repurchase Stock.

          (a)  Obligation  to  Repurchase.  In the  event  that the  Participant
     exercises the ISO Option, and if ""the Company is not a "reporting company"
     under Section 12 of the Exchange Act, the  Participant may elect to require
     the Company to purchase  from the  Participant  any and all shares of Stock
     which  are or have been  issued to the  Participant  upon the  exercise  of
     Options pursuant to this Option Agreement and which are beneficially  owned
     by the  Participant as of the date of such election (the "Election  Date"),
     upon the following terms:

               (i) The purchase price to be paid by the Company for the Stock to
          be  repurchased  pursuant to this  Section 13 (the  "Affected  Stock")
          shall be the  greater  of (A) the Fair  Market  Value of the  Affected
          Stock as of the Election  Date,  and (B) the  "Estimated  Value of the
          Affected  Stock" as of the Election  Date.  As used  herein,  the term
          "Estimated  Value of the  Affected  Stock"  shall be  determined  with
          reference to the  consolidated  balance sheet of the Company as of the
          last day of the calendar quarter next preceding the Election Date (the
          "Balance  Sheet").  The total assets  reflected  on the Balance  Sheet
          shall be  adjusted  to include the  present  value  (discounted  at an
          annual rate of 10%) of the  Company's  oil and gas  reserves as of the
          date of the Balance Sheet,  determined in accordance with Section 4-10
          of  Regulation   S-X   promulgated  by  the  Securities  and  Exchange
          Commission  and  Statement  of  Financial  Accounting  Standard No. 69
          entitled   "Disclosures  About  Oil  and  Gas  Producing   Activities"
          promulgated  by the Financial  Accounting  Standards  Board.  The book
          value net worth of the Company as of the Balance Sheet date,  adjusted
          as provided  above,  shall be divided by the total number of shares of
          Stock  outstanding  as of the Balance  Sheet date.  The  resulting per
          share value of the Common Stock shall be multiplied by 66 2/3% and the
          resulting  sum shall  then be  multiplied  by the  number of shares of
          Affected  Stock and the resulting sum shall be the Estimated  Value of
          the Affected Stock.

               (ii) The purchase price shall be determined by the Company within
          forty-five (45) days next following the Election Date. Within five (5)
          calendar days next following the  determination of the purchase price,
          the  Company  shall  provide  to  the  Participant  a  written  report
          reflecting  the  Company's   calculation  of  the  purchase  price  in
          reasonable  detail.  The Participant shall have five (5) calendar days
          in which to deliver to the  Company  its  objection  to the  Company's
          determination  of the purchase  price.  Any such objection shall be in
          writing  and shall  state the  basis  for such  objection.  If no such
          objection is timely made, the Company's  determination of the purchase
          price shall be final.

               In the  event of a timely  objection,  and  within  ten (10) days
          following delivery of such objection to the Company, the determination
          of the  purchase  price shall be submitted  to a panel  consisting  of
          three  persons,  one  appointed by the Company,  one  appointed by the
          Participant,  and the third selected by the other two. The Company and
          the Participant shall provide written notice to each other of the name
          of the person  appointed  to the panel.  If either the  Company or the
          Participant  fail to timely appoint its member of the panel, the other
          party may do so. The determination of the purchase price by a majority
          of the members of the panel shall be final and binding on the parties.

               (iii) The closing of the Company's purchase of the Affected Stock
          shall occur at the  offices of the Company on a business  day which is
          not  more  than  seven  (7)   calendar   days   following   the  final
          determination  of the purchase price. At the closing,  the Participant
          shall deliver the Affected  Stock by  appropriate  assignment  against
          payment of the purchase price.

     Section 14.  Restrictive  Legend.  Each certificate  representing the Stock
shall contain on its face, in addition to any other legend, the following legend
in order to give notice of this  restriction  to any  purchaser or transferee of
Stock:

         "THE SHARES OF COMMON STOCK OF CONTINENTAL RESOURCES,  INC. ("COMPANY")
         REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER
         AND THE RIGHT OF THE COMPANY TO REPURCHASE THE STOCK IN ACCORDANCE WITH
         THE  TERMS  OF  THAT   CERTAIN   INCENTIVE   STOCK   OPTION   AGREEMENT
         ("AGREEMENT")  DATED  ________________,   2___  WHICH  RELATES  TO  THE
         CONTINENTAL  RESOURCES,  INC. 2000 STOCK OPTION PLAN. CERTAIN TRANSFERS
         OF THE COMPANY STOCK MAY BE  INVALIDATED IF SUCH TRANSFERS ARE NOT MADE
         IN  ACCORDANCE  WITH  THE  TERMS OF THE  AGREEMENT.  ANY  PURCHASER  OR
         TRANSFEREE OF THE SHARES OF COMPANY  COMMON STOCK  REPRESENTED  BY THIS
         CERTIFICATE  SHOULD  OBTAIN A COPY OF THE AGREEMENT AND INSURE THAT THE
         PROPOSED PURCHASE OR TRANSFER DOES NOT VIOLATE THE AGREEMENT."

     Section 15. Notices.  All notices or other  communications  relating to the
Plan and this  Option  Agreement  as it relates to the  Participant  shall be in
writing and shall be delivered  personally or mailed (U.S.  Mail) by the Company
to the  Participant at the then current  address as maintained by the Company or
such other address as the Participant may advise the Company in writing.

     IN WITNESS  WHEREOF,  the parties have executed this Incentive Stock Option
Agreement as of the day and year first above written.

                               CONTINENTAL RESOURCES, INC., an Oklahoma
                               corporation

                               By
                                                              "COMPANY"

                                                            "PARTICIPANT"Exhibit 10.8

                           CONTINENTAL RESOURCES, INC.

                             2000 STOCK OPTION PLAN

                       NONQUALIFIED STOCK OPTION AGREEMENT

Participant
Name:_______________________            Grant Date:____________________________

                                               Vesting Schedule
Shares Subject to Nonqualified                                Percent of Stock
Stock Option: _______             Exercise Dates             Option Exercisable

Expiration Date: ____ 2010       _____________, 2001                    33 1/3%
                                 _____________, 2002                    66 2/3%
Option Price:___________         _____________, 2003                       100%

<PAGE>

                       NONQUALIFIED STOCK OPTION AGREEMENT
                     UNDER 2000 CONTINENTAL RESOURCES, INC.
                                STOCK OPTION PLAN

     THIS NONQUALIFIED STOCK OPTION AGREEMENT (the "Option Agreement"),  made as
of the grant  date set forth on the cover  page of this  Option  Agreement  (the
"Cover  Page") at Enid,  Oklahoma by and between  the  participant  named on the
Cover Page (the "Participant") and CONTINENTAL RESOURCES, INC. (the "Company"):

                              W I T N E S S E T H:

     WHEREAS, the Participant is an employee of the Company, a Subsidiary of the
Company,  or an Affiliated  Entity,  and it is important to the Company that the
Participant be encouraged to remain in the employ of the Company; and

     WHEREAS,  in recognition of such facts,  the Company  desires to provide to
the  Participant an  opportunity  to purchase  shares of the common Stock of the
Company, as hereinafter provided,  pursuant to the "Continental Resources,  Inc.
2000 Stock Option Plan" (the  "Plan"),  a copy of which has been provided to the
Participant; and

     WHEREAS,  any  capitalized  terms used but not defined herein have the same
meanings given them in the Plan.

     NOW,  THEREFORE,  in consideration of the mutual covenants  hereinafter set
forth and for good and valuable  consideration,  the Participant and the Company
hereby agree as follows:

     Section  1.  Grant  of Stock  Option.  The  Company  hereby  grants  to the
Participant a nonqualified  stock option (the "Stock Option") to purchase all or
any part of the  number of shares of its  common  Stock,  par value  $1.00  (the
"Stock")  set  forth on the  Cover  Page,  under  and  subject  to the terms and
conditions of this Option Agreement and the Plan which is incorporated herein by
reference and made a part hereof for all purposes.  The purchase  price for each
share to be purchased hereunder shall be the option price set forth on the Cover
Page (the "Option Price").

     Section  2.  Times of  Exercise  of  Option.  After,  and only  after,  the
conditions   of  Section  9  hereof  have  been   satisfied  and  the  Company's
shareholders have approved the Plan in accordance with the provisions of Section
1.04 of the Plan, the Participant shall be eligible to exercise the Stock Option
pursuant  to the  vesting  schedule  set forth on the Cover  Page (the  "Vesting
Schedule"). If the Participant's employment with the Company (or a Subsidiary of
the Company or an Affiliated  Entity)  remains  full-time and  continuous at all
times  prior to any of the  exercise  dates  specified  on the  Cover  Page (the
"Exercise  Dates"),  then the  Participant  shall be  entitled,  subject  to the
applicable  provisions  of the  Plan  and  this  Option  Agreement  having  been
satisfied, to exercise on or after the applicable Exercise Date, on a cumulative
basis,  the number of Stock  Options  determined  by  multiplying  the aggregate
number of shares of Stock  subject  to the Stock  Option  set forth on the Cover
Page by the designated percentage set forth on the Cover Page.

     Section  3.  Term of  Stock  Option.  Subject  to  earlier  termination  as
hereafter  provided,  the Stock  Option shall expire at the close of business on
the expiration  date set forth on the Cover Page and may not be exercised  after
such expiration date; provided, however, in no event shall the term of the Stock
Option be longer than ten years from the Date of Grant.

     Section 4. Transferability of Stock Option.

          (a)  General.  Except as provided in Section  4(b)  hereof,  the Stock
     Option  shall  not be  transferable  otherwise  than by will or the laws of
     descent and distribution, and the Stock Option may be exercised, during the
     lifetime of the  Participant,  only by the Participant.  More  particularly
     (but without  limiting the generality of the  foregoing),  the Stock Option
     may not be assigned,  transferred  (except as provided above and in Section
     4(b) hereof),  pledged or  hypothecated in any way, shall not be assignable
     by operation of law and shall not be subject to execution,  attachment,  or
     similar process. Any attempted assignment,  transfer, pledge, hypothecation
     or other  disposition of the Stock Option contrary to the provisions hereof
     shall be null and void and without effect.

          (b) Limited Transferability of Stock Options. The Stock Options may be
     transferred  by such  Participant  to (i) the ex-spouse of the  Participant
     pursuant  to the terms of a  domestic  relations  order,  (ii) the  spouse,
     children or grandchildren of the Participant  ("Immediate Family Members"),
     (iii) a trust or trusts for the exclusive  benefit of such Immediate Family
     Members,  or (iv) a partnership in which such Immediate  Family Members are
     the only partners; provided that there may be no consideration for any such
     transfer and  subsequent  transfers of  transferred  Stock Options shall be
     prohibited  except those in accordance with Section 4(a) hereof.  Following
     transfer,  any such Stock Options shall  continue to be subject to the same
     terms and  conditions  as were  applicable  immediately  prior to transfer,
     provided  that for  purposes of this  Section  4(b) the term  "Participant"
     shall be deemed to refer to the  transferee.  The events of  termination of
     employment  of the Plan shall  continue to be applied  with  respect to the
     original   Participant,   following   which  the  Stock  Options  shall  be
     exercisable  by the  transferee  only to the  extent,  and for the  periods
     specified in the Plan.  No transfer  pursuant to this Section 4(b) shall be
     effective to bind the Company  unless the Company shall have been furnished
     with written  notice of such transfer  together  with such other  documents
     regarding the transfer as the Committee shall request.

     Section 5.  Employment.  So long as the Participant  shall continue to be a
full-time and continuous employee of the Company, a Subsidiary of the Company or
an  Affiliated  Entity,  the Stock Option shall not be affected by any change of
duties or position. Nothing in the Plan or in this Option Agreement shall confer
upon the  Participant  any right to  continue  in the employ of the  Company,  a
Subsidiary of the Company or an Affiliated  Entity, or interfere in any way with
the right of the Company, a Subsidiary of the Company or an Affiliated Entity to
terminate the Participant's employment at any time.

     Section 6. Acceleration of Otherwise  Unexercisable Stock Options on Death,
Disability  or  Other  Special  Circumstances.   The  Committee,   in  its  sole
discretion,  may permit (i) a Participant  who  terminates  employment  due to a
Disability, (ii) the personal representative of a deceased Participant, or (iii)
any other  Participant who terminates  employment upon the occurrence of special
circumstances (as determined by the Committee) to purchase all or any all or any
part of the shares subject to the Stock Option for which the applicable Exercise
Date(s) has not yet occurred on the date of the Participant's death, termination
of  his  employment  due  to a  Disability,  or as the  Committee  otherwise  so
determines.  With  respect to shares  subject to the Stock  Option for which the
applicable Exercise Dates have occurred or for which the Committee has permitted
purchase in accordance with the foregoing  provision,  the  Participant,  or the
representative of a deceased Participant,  shall automatically have the right to
purchase  such  shares  within  three  months  of such  date of  termination  of
employment,  one year in the case of a  Participant  suffering a  Disability  or
three years in the case of a deceased Participant.

     Section 7. Method of Exercising Stock Option.

          (a) Procedures for Exercise. The manner of exercising the Stock Option
     herein  granted shall be by written  notice to the Secretary of the Company
     at the time the Stock Option, or part thereof,  is to be exercised,  and in
     any event prior to the  expiration of the Stock  Option.  Such notice shall
     state the  election to exercise the Stock  Option,  the number of shares of
     Stock to be purchased  upon  exercise,  the form of payment to be used, and
     shall be signed by the person so exercising the Stock Option.

          (b) Form of  Payment.  Payment in full for  shares of Stock  purchased
     under this Option  Agreement  shall accompany the  Participant's  notice of
     exercise,  together  with  payment for any  applicable  withholding  taxes.
     Payment shall be made (i) in cash or by check, draft or money order payable
     to the  order of the  Company;  (ii) by  delivering  Stock or other  equity
     securities of the Company having a Fair Market Value on the date of payment
     equal to the  amount  of the  Option  Price,  but only to the  extent  such
     exercise of an Option would not result in an accounting charge with respect
     to the shares used to pay the exercise price unless otherwise determined by
     the Committee; or (iii) a combination thereof. In addition to the foregoing
     procedure  which may be  available  for the  exercise of the Stock  Option,
     after  the date on  which  the  Company's  Stock is  listed  on a  national
     securities exchange or the  NASDAQ/National  Market System or quoted on the
     over-the-counter  market by the National Association of Securities Dealers,
     the  Participant  may  deliver to the  Company a notice of  exercise  which
     includes  an  irrevocable  instruction  to the Company to deliver the Stock
     certificate representing the shares of Stock being purchased, issued in the
     name of the Participant, to a broker approved by the Company and authorized
     to trade in the common Stock of the  Company.  Upon receipt of such notice,
     the Company shall  acknowledge  receipt of the executed  notice of exercise
     and  forward  this notice to the  broker.  Upon  receipt of the copy of the
     notice which has been acknowledged by the Company,  and without waiting for
     issuance of the actual  Stock  certificate  with respect to the exercise of
     the Stock Option, the broker may sell the Stock or any portion thereof. The
     broker  shall  deliver  directly to the Company  that  portion of the sales
     proceeds  sufficient to cover the ISO Price and withholding  taxes, if any.
     For all purposes of effecting the exercise of the Stock Option, the date on
     which the Participant gives the notice of exercise to the Company, together
     with  payment for the shares of Stock being  purchased  and any  applicable
     withholding taxes, shall be the "date of exercise." If a notice of exercise
     and payment are delivered at different times, the date of exercise shall be
     the date the Company first has in its  possession  both the notice and full
     payment as provided herein.

          (c) Further  Information.  In the event the Stock Option is exercised,
     pursuant to the foregoing provisions of this Section 7, by any person other
     than the Participant due to the death of the Participant, such notice shall
     also be  accompanied  by  appropriate  proof of the right of such person to
     exercise  the  Stock  Option.  The  notice  so  required  shall be given by
     personal  delivery  to the  Secretary  of the Company or by  registered  or
     certified  mail,  addressed to the Company at 302 North  Independence,  3rd
     Floor, Post Office Box 1032, Enid, Oklahoma 73702 and it shall be deemed to
     have been given when it is so personally  delivered or when it is deposited
     in the United  States  mail in an envelope  addressed  to the  Company,  as
     aforesaid,  properly  stamped for  delivery as a  registered  or  certified
     letter.

     Section 8.  Acceleration  of Stock  Option  Upon  Corporate  Event.  If the
Company shall,  pursuant to action by its Board, at any time propose to dissolve
or liquidate or merge into,  consolidate with, or sell or otherwise transfer all
or substantially  all of its assets to another  corporation and provision is not
made  pursuant  to the  terms  of such  transaction  for the  assumption  by the
surviving, resulting or acquiring corporation of outstanding Stock Options under
this Option  Agreement,  or for the  substitution of new options  therefor,  the
Committee shall cause written notice of the proposed  transaction to be given to
the Participant not less than forty days prior to the anticipated effective date
of the proposed transaction,  and the Stock Option shall become 100% vested and,
prior to a date specified in such notice,  which shall be not more than ten days
prior  to the  anticipated  effective  date  of the  proposed  transaction,  the
Participant shall have the right to exercise the Stock Option to purchase any or
all of the Stock  then  subject  to the Stock  Option.  The  Participant,  by so
notifying the Company in writing, may, in exercising the Stock Option, condition
such exercise upon, and provide that such exercise shall become effective at the
time of, but immediately prior to, the consummation of the transaction, in which
event the  Participant  need not make payment for the Stock to be purchased upon
exercise of the Stock Option until five days after written notice by the Company
to the Participant that the transaction has been consummated. If the transaction
is consummated,  the Stock Option, to the extent not previously  exercised prior
to the date specified in the foregoing notice,  shall terminate on the effective
date of such  consummation.  If the transaction is abandoned,  (i) any Stock not
purchased  upon exercise of the Stock Option shall  continue to be available for
purchase in  accordance  with the other  provisions  of the Plan and this Option
Agreement  and (ii) to the  extent  that any  portion  of the Stock  Option  not
exercised  prior to such  abandonment  shall have vested  solely by operation of
this Section 8, such vesting shall be deemed annulled,  and the Vesting Schedule
set  forth  on the  Cover  Page  shall be  reinstituted,  as of the date of such
abandonment.

     Section 9. Change of Control or Death of Harold  Hamm.  Promptly  following
the first to occur of (a) a Change of Control of the  Company,  or (b) the death
of Harold Hamm if,  immediately  prior to the time of his death, the Controlling
Stockholders  were the  "beneficial  owners,"  as defined in Rule 3d-3 under the
Exchange  Act, of more than 35% of the total voting power of the Voting Stock of
the Company,  on a fully diluted basis, the Committee shall cause written notice
of such event to be given to each Participant and his or her outstanding Options
shall become 100% vested and thereafter each Participant shall have the right to
exercise all or any of his or her Options to purchase Capital Stock then subject
to his or her Options.

     Section  10.  Securities  Law  Restrictions.  The  Stock  Option  shall  be
exercised and Stock issued only upon compliance with the Securities Act of 1933,
as amended (the "Act"), and any other applicable  securities law, or pursuant to
an exemption  therefrom.  If deemed  necessary by the Company to comply with the
Act or any applicable  laws or  regulations  relating to the sale of securities,
the  Participant,  at the time of  exercise  and as a  condition  imposed by the
Company, shall represent,  warrant and agree that the shares of Stock subject to
the Stock Option are being  purchased  for  investment  and not with any present
intention  to  resell  the  same and  without  a view to  distribution,  and the
Participant  shall, upon the request of the Company,  execute and deliver to the
Company an agreement to such effect. The Participant acknowledges that any Stock
certificate representing Stock purchased under such circumstances will be issued
with a restricted securities legend.

     Section 11. Payment of Withholding  Taxes.  No exercise of any Stock Option
may be effected  until the Company  receives full payment for any required state
and federal withholding taxes.  Required  withholding shall be determined as the
employer's  minimum  statutory  withholding  based  upon the  minimum  statutory
withholding rates for federal and state purposes,  including payroll taxes, that
are applicable to such  supplemental  taxable  income.  Payment for  withholding
taxes shall be made in cash, by check , or by the Participant  surrendering,  or
the Company retaining from the shares of Stock to be issued upon exercise of the
Stock  Option,  that number of shares of Stock (based on Fair Market Value) that
would be necessary to satisfy the  requirements  for  withholding any amounts of
taxes due upon the exercise of the Stock Option. Except, however, any payment of
required  withholding taxes by the Participant in the form of Stock shall not be
permitted if it would result in an accounting charge with respect to such shares
used to pay such taxes  unless  otherwise  approved  by the  Committee.  For the
purpose of calculating  the Fair Market Value of shares  surrendered or retained
to pay withholding  taxes,  the relevant date shall be the date of exercise.  In
the event the Participant uses the "cashless"  exercise/same-day  sale procedure
set forth in Section 7(b) hereof to pay withholding taxes, the actual sale price
of shares  sold to  satisfy  payment  shall be used to  determine  the amount of
withholding  taxes  payable.  Nothing  herein,  however,  shall be  construed as
requiring  payment of  withholding  taxes at the time of  exercise if payment of
taxes  is  deferred   pursuant  to  any  provision  of  the  Code,  and  actions
satisfactory  to the Company are taken which are designed to  reasonably  insure
payment of withholding taxes when due.

     Section 12. Right of Company to Repurchase Stock.

          (a) Right to Repurchase.  In the event that the Participant  exercises
     the Stock Option,  any shares of Stock which are issued to the  Participant
     will be subject to the right of the Company to repurchase (the  "Repurchase
     Right") the Stock at its Fair Market Value as  determined by the Company in
     accordance with the terms of this Option Agreement upon such  Participant's
     termination  of employment  (whether  voluntary or  involuntary),  and such
     right,  unless sooner  terminated as provided in Subsection  (c) below,  to
     repurchase  shall  continue  for a  period  of  two  years  following  such
     termination of employment and upon such terms and conditions as the Company
     deems  appropriate or will be subject to a Stock Purchase  Agreement in the
     form which is  applicable  to the other  shareholders  of the Company.  (b)
     Right to Pledge or Transfer Stock.  After the exercise of the Stock Option,
     the Participant  shall not be permitted to (i) pledge all or any portion of
     the Stock as security for any debt or obligation of the Participant or (ii)
     transfer  any  Stock  without  the prior  written  consent  of the  Company
     (collectively the "Pledge/Transfer Restriction").

     Section 13. Obligation of Company to Repurchase Stock.

          (a)  Obligation  to  Repurchase.  In the  event  that the  Participant
     exercises the Stock Option and ""the  Company is not a "reporting  company"
     under Section 12 of the Exchange Act, the  Participant may elect to require
     the the  Company to  purchase  from the  Participant  any and all shares of
     Stock which are or have been issued to the Participant upon the exercise of
     Options pursuant to this Option Agreement and which are beneficially  owned
     by the  Participant as of the date of such election (the "Election  Date'),
     upon the following terms:

               (i) The purchase price to be paid by the Company for the Stock to
          be  repurchased  pursuant to this  Section 13 (the  "Affected  Stock")
          shall be the  greater  of (A) the Fair  Market  Value of the  Affected
          Stock as of the Election  Date,  and (B) the  "Estimated  Value of the
          Affected  Stock" as of the Election  Date.  As used  herein,  the term
          "Estimated  Value of the  Affected  Stock"  shall be  determined  with
          reference to the  consolidated  balance sheet of the Company as of the
          last day of the calendar quarter next preceding the Election Date (the
          "Balance  Sheet").  The total assets  reflected  on the Balance  Sheet
          shall be  adjusted  to include the  present  value  (discounted  at an
          annual rate of 10%) of the  Company's  oil and gas  reserves as of the
          date of the Balance Sheet,  determined in accordance with Section 4-10
          of  Regulation   S-X   promulgated  by  the  Securities  and  Exchange
          Commission  and  Statement  of  Financial  Accounting  Standard No. 69
          entitled   "Disclosures  About  Oil  and  Gas  Producing   Activities"
          promulgated  by the Financial  Accounting  Standards  Board.  The book
          value net worth of the Company as of the Balance Sheet date,  adjusted
          as provided  above,  shall be divided by the total number of shares of
          Stock  outstanding  as of the Balance  Sheet date.  The  resulting per
          share value of the Common Stock shall be multiplied by 66 2/3% and the
          resulting  sum shall  then be  multiplied  by the  number of shares of
          Affected  Stock and the resulting sum shall be the Estimated  Value of
          the Affected Stock.

               (ii) The purchase price shall be determined by the Company within
          forty-five (45) days next following the Election Date. Within five (5)
          calendar days next following the  determination of the purchase price,
          the  Company  shall  provide  to  the  Participant  a  written  report
          reflecting  the  Company's   calculation  of  the  purchase  price  in
          reasonable  detail.  The Participant shall have five (5) calendar days
          in which to deliver to the  Company  its  objection  to the  Company's
          determination  of the purchase  price.  Any such objection shall be in
          writing  and shall  state the  basis  for such  objection.  If no such
          objection is timely made, the Company's  determination of the purchase
          price shall be final.

               In the  event of a timely  objection,  and  within  ten (10) days
          following delivery of such objection to the Company, the determination
          of the  purchase  price shall be submitted  to a panel  consisting  of
          three  persons,  one  appointed by the Company,  one  appointed by the
          Participant,  and the third selected by the other two. The Company and
          the Participant shall provide written notice to each other of the name
          of the person  appointed  to the panel.  If either the  Company or the
          Participant  fail to timely appoint its member of the panel, the other
          party may do so. The determination of the purchase price by a majority
          of the members of the panel shall be final and binding on the parties.

               (iii) The closing of the Company's purchase of the Affected Stock
          shall occur at the  offices of the Company on a business  day which is
          not  more  than  seven  (7)   calendar   days   following   the  final
          determination  of the purchase price. At the closing,  the Participant
          shall deliver the Affected  Stock by  appropriate  assignment  against
          payment of the purchase price.

     Section 14.  Restrictive  Legend.  Each certificate  representing the Stock
shall contain on its face, in addition to any other legend, the following legend
in order to give notice of this  restriction  to any  purchaser or transferee of
Stock:

         "THE SHARES OF COMMON STOCK OF CONTINENTAL RESOURCES,  INC. ("COMPANY")
         REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER
         AND THE RIGHT OF THE COMPANY TO REPURCHASE THE STOCK IN ACCORDANCE WITH
         THE  TERMS  OF  THAT  CERTAIN   NONQUALIFIED   STOCK  OPTION  AGREEMENT
         ("AGREEMENT")  DATED  ________________,  2____  WHICH  RELATES  TO  THE
         CONTINENTAL  RESOURCES,  INC. 2000 STOCK OPTION PLAN. CERTAIN TRANSFERS
         OF THE COMPANY STOCK MAY BE  INVALIDATED IF SUCH TRANSFERS ARE NOT MADE
         IN  ACCORDANCE  WITH  THE  TERMS OF THE  AGREEMENT.  ANY  PURCHASER  OR
         TRANSFEREE OF THE SHARES OF COMPANY  COMMON STOCK  REPRESENTED  BY THIS
         CERTIFICATE  SHOULD  OBTAIN A COPY OF THE AGREEMENT AND INSURE THAT THE
         PROPOSED PURCHASE OR TRANSFER DOES NOT VIOLATE THE AGREEMENT."

     Section 15. Notices.  All notices or other  communications  relating to the
Plan and this  Option  Agreement  as it relates to the  Participant  shall be in
writing and shall be delivered  personally or mailed (U.S.  Mail) by the Company
to the  Participant at the then current  address as maintained by the Company or
such other address as the Participant may advise the Company in writing.

     IN WITNESS  WHEREOF,  the parties have  executed  this  Nonqualified  Stock
Option Agreement as of the day and year first above written.

                                CONTINENTAL RESOURCES, INC., an Oklahoma
                                corporation

                                By:
                                                  "COMPANY"

                                          "PARTICIPANT"

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