Document:

Exhibit 4.15

Exhibit 4.15

$300,000,000

Brigham Exploration Company

6 7/8% Senior Notes due 2019

REGISTRATION RIGHTS AGREEMENT

May 19, 2011

MERRILL LYNCH, PIERCE FENNER & SMITH,

                              INCORPORATED

CREDIT SUISSE SECURITIES (USA) LLC,

c/o Merrill Lynch, Pierce, Fenner & Smith,

                    Incorporated

          One Bryant Park, 10th Floor

          New York, New York 10036

Dear Sirs:

Brigham Exploration Company, a Delaware corporation (the “Issuer”), proposes to issue and sell
upon the terms set forth in the purchase agreement dated May 16, 2011 (the “Purchase Agreement”) by
and among the Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Credit Suisse
Securities (USA) LLC, as representatives for the several initial purchasers named on Schedule A to
the Purchase Agreement (collectively, the “Initial Purchasers”), to the Initial Purchasers
$300,000,000 aggregate principal amount of its 6 7/8% Senior Notes due 2019 (the “Initial
Securities”) to be unconditionally guaranteed (the “Guarantees”) by Brigham, Inc., a Nevada
corporation, and Brigham Oil & Gas, L.P., a Delaware limited partnership (the “Guarantors” and
together with the Issuer, the “Company”). The Initial Securities will be issued pursuant to an
indenture, dated as of May 19, 2011 (the “Indenture”) among the Issuer, the Guarantors and Wells
Fargo Bank, N.A. (the “Trustee”). As an inducement to the Initial Purchasers, the Company agrees
with the Initial Purchasers, for the benefit of the holders of the Initial Securities (including,
without limitation, the Initial Purchasers), the Exchange Securities (as defined below) and the
Private Exchange Securities (as defined below) (collectively the “Holders”), as follows:

1. Registered Exchange Offer. The Company shall, at its own cost, prepare and, not later
than 210 days after (or if the 210th day is not a business day, the first business day thereafter)
May 19, 2011, the date of original issue of the Initial Securities (the “Issue Date”), file with
the Securities and Exchange Commission (the “Commission”) a registration statement (the “Exchange
Offer Registration Statement”) on an appropriate form under the Securities Act of 1933, as amended
(the “Securities Act”), with respect to a proposed offer (the “Registered Exchange Offer”) to the
Holders of Transfer Restricted Securities (as defined in Section 6 hereof), who are not prohibited
by any law or policy of the Commission from participating in the Registered Exchange Offer, to
issue and deliver to such Holders, in exchange for the Initial Securities, a like aggregate
principal amount of debt securities (the “Exchange Securities”) of the Company issued under the
Indenture and identical in all material respects to the Initial Securities (except for the transfer
restrictions relating to the Initial Securities and the provisions relating to the matters
described in Section 6 hereof) that would be registered under the Securities Act. The Company
shall use its reasonable best efforts to cause such Exchange Offer Registration Statement to become
effective under the Securities Act within 360 days (or if the 360th day is not a business day, the
first business day thereafter) after the Issue Date of the Initial Securities and shall keep the
Exchange Offer Registration Statement effective for not less than 20 business days (or longer, if
required by applicable law) after the date notice of the Registered Exchange Offer is mailed to the
Holders (such period being called the “Exchange Offer Registration Period”).

 

 

 

If the Company effects the Registered Exchange Offer, the Company will be entitled to close
the Registered Exchange Offer within 30 days after the commencement thereof provided that the
Company has accepted all the Initial Securities theretofore validly tendered in accordance with the
terms of the Registered Exchange Offer.

Following the declaration of the effectiveness of the Exchange Offer Registration Statement,
the Company shall commence the Registered Exchange Offer within such time as will reasonably be
necessary to assure consummation of the Registered Exchange Offer within the time contemplated in
the preceding paragraphs of this Section 1, it being the objective of such Registered Exchange
Offer to enable each Holder of Transfer Restricted Securities (as defined in Section 6 hereof)
electing to exchange the Initial Securities for Exchange Securities (assuming that such Holder is
not an affiliate of the Company within the meaning of the Securities Act, acquires the Exchange
Securities in the ordinary course of such Holder’s business and has no arrangements with any person
to participate in the distribution of the Exchange Securities and is not prohibited by any law or
policy of the Commission from participating in the Registered Exchange Offer) to trade such
Exchange Securities from and after their receipt without any limitations or restrictions under the
Securities Act and without material restrictions under the securities laws of the several states of
the United States.

The Company acknowledges that, pursuant to current interpretations by the Commission’s staff
of Section 5 of the Securities Act, in the absence of an applicable exemption therefrom, (i) each
Holder that is a broker-dealer electing to exchange Securities, acquired for its own account as a
result of market making activities or other trading activities, for Exchange Securities (an
“Exchanging Dealer”), is required to deliver a prospectus containing the information set forth in
(a) Annex A hereto on the cover, (b) Annex B hereto in the “Exchange Offer Procedures” section and
the “Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of Distribution”
section of such prospectus in connection with a sale of any such Exchange Securities received by
such Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) an Initial Purchaser that
elects to sell Exchange Securities acquired in exchange for Securities constituting any portion of
an unsold allotment is required to deliver a prospectus containing the information required by
Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in connection with such
sale.

The Company shall use its reasonable best efforts to keep the Exchange Offer Registration
Statement effective and to amend and supplement the prospectus contained therein, in order to
permit such prospectus to be lawfully delivered by all persons subject to the prospectus delivery
requirements of the Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however, that (i) in the case
where such prospectus and any amendment or supplement thereto must be delivered by an Exchanging
Dealer or an Initial Purchaser, such period shall be the lesser of 180 days (or such shorter period
during which Exchanging Dealer or Initial Purchaser is required by law to deliver such prospectus)
and the date on which all Exchanging Dealers and the Initial Purchasers have sold all Exchange
Securities held by them (unless such period is extended pursuant to Section 3(j) below) and (ii)
the Company shall make such prospectus and any amendment or supplement thereto, available to any
broker-dealer for use in connection with any resale of any Exchange Securities for a period of not
less than 90 days after the consummation of the Registered Exchange Offer.

If, upon consummation of the Registered Exchange Offer, any Initial Purchaser holds Initial
Securities acquired by it as part of its initial distribution, the Company, simultaneously with the
delivery of the Exchange Securities pursuant to the Registered Exchange Offer, shall issue and
deliver to such Initial Purchaser upon the written request of such Initial Purchaser, in exchange
(the “Private Exchange”) for the Initial Securities held by such Initial Purchaser, a like
principal amount of debt securities of the Company issued under the Indenture and identical in all
material respects (including the existence of restrictions on transfer under the Securities Act and
the securities laws of the several states of the United States, but
excluding provisions relating to the matters described in Section 6 hereof) to the Initial
Securities (the “Private Exchange Securities”). The Initial Securities, the Exchange Securities
and the Private Exchange Securities are herein collectively called the “Securities.”

 

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In connection with the Registered Exchange Offer, the Company shall:

(a) mail to each Holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and related
documents;

(b) keep the Registered Exchange Offer open for not less than 20 business days (or
longer, if required by applicable law) after the date notice thereof is mailed to the
Holders;

(c) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the Registered Exchange Offer
shall remain open; and

(d) otherwise comply with all applicable laws.

As soon as practicable after the close of the Registered Exchange Offer or the Private
Exchange, as the case may be, the Company shall:

(x) accept for exchange all the Securities validly tendered and not withdrawn
pursuant to the Registered Exchange Offer and the Private Exchange;

(y) deliver to the Trustee for cancellation all the Initial Securities so accepted
for exchange; and

(z) cause the Trustee to authenticate and deliver promptly to each Holder of the
Initial Securities, Exchange Securities or Private Exchange Securities, as the case may be,
equal in principal amount to the Initial Securities of such Holder so accepted for
exchange.

The Indenture will provide that the Exchange Securities will not be subject to the transfer
restrictions set forth in the Indenture and that all the Securities will vote and consent together
on all matters as one class and that none of the Securities will have the right to vote or consent
as a class separate from one another on any matter.

Interest on each Exchange Security and Private Exchange Security issued pursuant to the
Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment
date on which interest was paid on the Initial Securities surrendered in exchange therefor or, if
no interest has been paid on the Initial Securities, from the date of original issue of the Initial
Securities.

Each Holder participating in the Registered Exchange Offer shall be required to represent to
the Company that at the time of the consummation of the Registered Exchange Offer (i) any Exchange
Securities received by such Holder will be acquired in the ordinary course of business, (ii) such
Holder will have no arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of the Securities Act,
(iii) such Holder is not an “affiliate,” as defined in Rule 405 under the Securities Act, of the
Company or if it is an affiliate, such Holder will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not a
broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the
Exchange Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange
Securities for its own account in exchange for Initial Securities that were acquired as a result of
market-making activities or other trading activities and that it will be required to acknowledge
that it will deliver a prospectus in connection with any resale of such Exchange Securities.

 

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Notwithstanding any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus forming part thereof and
any supplement thereto complies in all material respects with the Securities Act and the rules and
regulations thereunder, (ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and
any supplement to such prospectus, does not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

2. Shelf Registration. If, (i) because of any change in law or in applicable interpretations
thereof by the staff of the Commission, the Company is not permitted to effect a Registered
Exchange Offer, as contemplated by Section 1 hereof, (ii) the Registered Exchange Offer is not
consummated within 400 days following the Issue Date, (iii) any Initial Purchaser so requests with
respect to the Initial Securities (or the Private Exchange Securities) not eligible to be exchanged
for Exchange Securities in the Registered Exchange Offer and held by it following consummation of
the Registered Exchange Offer or (iv) any Holder (other than an Exchanging Dealer) is not eligible
to participate in the Registered Exchange Offer or, in the case of any Holder (other than an
Exchanging Dealer) that participates in the Registered Exchange Offer, such Holder does not receive
freely tradeable Exchange Securities on the date of the exchange, the Company shall take the
following actions:

(a) The Company shall, at its cost, as promptly as practicable (but in no event more
than 30 days after so required or requested pursuant to this Section 2) file with the
Commission and thereafter shall use its reasonable best efforts to cause to be declared
effective (unless it becomes effective automatically upon filing), (1) in the case of a
registration required as a result of clause (i) above, on or before the 360th
calendar day following the Issue Date (or if the 360th day is not a business day, the next
business day) or (2) in the case of a registration required as a result of clauses (ii),
(iii) or (iv) above, on or before the 120th calendar day following the date on
which the Shelf Registration Statement is required to be filed (or if the 120th day is not
a business day, the next business day), a registration statement (the “Shelf Registration
Statement” and, together with the Exchange Offer Registration Statement, a “Registration
Statement”) on an appropriate form under the Securities Act relating to the offer and sale
of the Transfer Restricted Securities (as defined in Section 6 hereof) by the Holders
thereof from time to time in accordance with the methods of distribution set forth in the
Shelf Registration Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf
Registration”); provided, however, that no Holder (other than an Initial Purchaser) shall
be entitled to have the Securities held by it covered by such Shelf Registration Statement
unless such Holder agrees in writing to be bound by all the provisions of this Agreement
applicable to such Holder.

(b) The Company shall use its reasonable best efforts to keep the Shelf Registration
Statement continuously effective in order to permit the prospectus included therein to be
lawfully delivered by the Holders of the relevant Securities, for a period that will
terminate when all the Securities covered by the Shelf Registration Statement (i) have been
sold pursuant thereto or (ii) can be distributed to the public pursuant to Rule 144 under
the Securities Act. The Company shall be deemed not to have used its reasonable best
efforts to keep the Shelf Registration Statement effective during the requisite period if
it voluntarily takes any action that would result in Holders
of Securities covered thereby not being able to offer and sell such Securities during that
period, unless such action is required by applicable law.

 

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(c) Notwithstanding any other provisions of this Agreement to the contrary, the
Company shall cause the Shelf Registration Statement and the related prospectus and any
amendment or supplement thereto, as of the effective date of the Shelf Registration
Statement, amendment or supplement, (i) to comply in all material respects with the
applicable requirements of the Securities Act and the rules and regulations of the
Commission and (ii) not to contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading.

3. Registration Procedures. In connection with any Shelf Registration contemplated by
Section 2 hereof and, to the extent applicable, any Registered Exchange Offer contemplated by
Section 1 hereof, the following provisions shall apply:

(a) The Company shall (i) furnish to each Initial Purchaser, prior to the filing
thereof with the Commission, a copy of the Registration Statement and each amendment
thereof and each supplement, if any, to the prospectus included therein and, in the event
that an Initial Purchaser (with respect to any portion of an unsold allotment from the
original offering) is participating in the Registered Exchange Offer or the Shelf
Registration Statement, the Company shall use its reasonable best efforts to reflect in
each such document, when so filed with the Commission, such comments as such Initial
Purchaser reasonably may propose; (ii) include the information set forth in Annex A hereto
on the cover, in Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose
of the Exchange Offer” section and in Annex C hereto in the “Plan of Distribution” section
of the prospectus forming a part of the Exchange Offer Registration Statement and include
the information set forth in Annex D hereto in the Letter of Transmittal delivered pursuant
to the Registered Exchange Offer; (iii) if requested by an Initial Purchaser, include the
information required by Items 507 or 508 of Regulation S-K under the Securities Act, as
applicable, in the prospectus forming a part of the Exchange Offer Registration Statement;
(iv) include within the prospectus contained in the Exchange Offer Registration Statement a
section entitled “Plan of Distribution,” reasonably acceptable to the Initial Purchasers,
which shall contain a summary statement of the positions taken or policies made by the
staff of the Commission with respect to the potential “underwriter” status of any
broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) of Exchange Securities received by
such broker-dealer in the Registered Exchange Offer (a “Participating Broker-Dealer”),
whether such positions or policies have been publicly disseminated by the staff of the
Commission or such positions or policies, in the reasonable judgment of the Initial
Purchasers based upon advice of counsel (which may be in-house counsel), represent the
prevailing views of the staff of the Commission; and (v) in the case of a Shelf
Registration Statement, include in the prospectus included in the Shelf Registration
Statement (or, if permitted by Commission Rule 430B(b), in a prospectus supplement that
becomes a part thereof pursuant to Commission Rule 430B(f)) that is delivered to any Holder
pursuant to Section 3(d) and (f), the names of the Holders, who propose to sell Securities
pursuant to the Shelf Registration Statement, as selling securityholders.

 

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(b) The Company shall give written notice to the Initial Purchasers and any
Participating Broker-Dealer from whom the Company has received prior written notice that it
will be a Participating Broker-Dealer in the Registered Exchange Offer (which notice
pursuant to clauses (i)-(iii) hereof shall be accompanied by an instruction to suspend the
use of the prospectus until the requisite changes have been made):

(i) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose, of the issuance by the Commission of a notification of objection
to the use of the form on which the Registration Statement has been filed, and of
the happening of any event that causes the Company to become an “ineligible
issuer,” as defined in Commission Rule 405.

(ii) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

(iii) of the happening of any event that requires the Company to make changes
in the Registration Statement or the prospectus in order that the Registration
Statement or the prospectus do not contain an untrue statement of a material fact
nor omit to state a material fact required to be stated therein or necessary to
make the statements therein (in the case of the prospectus, in light of the
circumstances under which they were made) not misleading.

(c) The Company shall make every reasonable effort to obtain the withdrawal at the
earliest possible time, of any order suspending the effectiveness of the Registration
Statement.

(d) The Company shall furnish to each Holder of Securities included within the
coverage of the Shelf Registration, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment or supplement thereto, including
financial statements and schedules, and, if the Holder so requests in writing, all exhibits
thereto (including those, if any, incorporated by reference). The Company shall not,
without the prior consent of the Initial Purchasers, make any offer relating to the
Securities that would constitute a “free writing prospectus,” as defined in Commission Rule
405

(e) The Company shall deliver to each Exchanging Dealer and each Initial Purchaser,
and to any other Holder who so requests, without charge, at least one copy of the Exchange
Offer Registration Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if any Initial Purchaser or any such Holder requests, all
exhibits thereto (including those incorporated by reference

(f) The Company shall, during the Shelf Registration Period, deliver to each Holder
of Securities included within the coverage of the Shelf Registration, without charge, as
many copies of the prospectus (including each preliminary prospectus) included in the Shelf
Registration Statement and any amendment or supplement thereto as such person may
reasonably request. The Company consents, subject to the provisions of this Agreement, to
the use of the prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities in connection with the offering and sale of the Securities
covered by the prospectus, or any amendment or supplement thereto, included in the Shelf
Registration Statement.

(g) The Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the final
prospectus included in the Exchange Offer Registration Statement and any amendment or
supplement thereto as such persons may reasonably request. The Company consents, subject
to the provisions of this Agreement, to the use of the prospectus or any amendment or
supplement thereto by any Initial Purchaser, if
necessary, any Participating Broker-Dealer and such other persons required to deliver a
prospectus following the Registered Exchange Offer in connection with the offering and sale
of the Exchange Securities covered by the prospectus, or any amendment or supplement
thereto, included in such Exchange Offer Registration Statement.

 

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(h) Prior to any public offering of the Securities, pursuant to any Registration
Statement, the Company shall register or qualify or cooperate with the Holders of the
Securities included therein and their respective counsel in connection with the
registration or qualification of the Securities for offer and sale under the securities or
“blue sky” laws of such states of the United States as any Holder of the Securities
reasonably requests in writing and do any and all other acts or things necessary or
advisable to enable the offer and sale in such jurisdictions of the Securities covered by
such Registration Statement; provided, however, that the Company shall not be required to
(i) qualify generally to do business in any jurisdiction where it is not then so qualified
or (ii) take any action which would subject it to general service of process or to taxation
in any jurisdiction where it is not then so subject.

(i) The Company shall cooperate with the Holders of the Securities to facilitate the
timely preparation and delivery of certificates representing the Securities to be sold
pursuant to any Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders may request a reasonable period
of time prior to sales of the Securities pursuant to such Registration Statement.

(j) Upon the occurrence of any event contemplated by paragraphs (i) through (iii) of
Section 3(b) above during the period for which the Company is required to maintain an
effective Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement to the related
prospectus and any other required document so that, as thereafter delivered to Holders of
the Securities or purchasers of Securities, the prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. If the Company notifies the Initial Purchasers, the
Holders of the Securities and any known Participating Broker-Dealer in accordance with
paragraphs (i) through (iii) of Section 3(b) above to suspend the use of the prospectus
until the requisite changes to the prospectus have been made, then the Initial Purchasers,
the Holders of the Securities and any such Participating Broker-Dealers shall suspend use
of such prospectus, and the period of effectiveness of the Shelf Registration Statement
provided for in Section 2(b) above and the Exchange Offer Registration Statement provided
for in Section 1 above shall each be extended by the number of days from and including the
date of the giving of such notice to and including the date when the Initial Purchasers,
the Holders of the Securities and any known Participating Broker-Dealer shall have received
such amended or supplemented prospectus pursuant to this Section 3(j). During the period
during which the Company is required to maintain an effective Shelf Registration Statement
pursuant to this Agreement, the Company will prior to the three-year expiration of that
Shelf Registration Statement file, and use its reasonable best efforts to cause to be
declared effective (unless it becomes effective automatically upon filing) within a period
that avoids any interruption in the ability of Holders of Securities covered by the
expiring Shelf Registration Statement to make registered dispositions, a new registration
statement relating to the Securities, which shall be deemed the “Shelf Registration
Statement” for purposes of this Agreement.

(k) Not later than the effective date of the applicable Registration Statement, the
Company will provide a CUSIP number for the Exchange Securities or the Private Exchange
Securities, as the case may be, and provide the applicable trustee with printed
certificates for the
Initial Securities, the Exchange Securities or the Private Exchange Securities, as the case
may be, in a form eligible for deposit with The Depository Trust Company.

 

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(l) The Company will comply with all rules and regulations of the Commission to the
extent and so long as they are applicable to the Registered Exchange Offer or the Shelf
Registration and will make generally available to its security holders (or otherwise
provide in accordance with Section 11(a) of the Securities Act) an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act, no later than 45 days
after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning
with the first month of the Company’s first fiscal quarter commencing after the effective
date of the Registration Statement, which statement shall cover such 12-month period.

(m) The Company shall cause the Indenture to be qualified under the Trust Indenture
Act of 1939, as amended, in a timely manner and containing such changes, if any, as shall
be necessary for such qualification. In the event that such qualification would require
the appointment of a new trustee under the Indenture, the Company shall appoint a new
trustee thereunder pursuant to the applicable provisions of the Indenture.

(n) The Company may require each Holder of Securities to be sold pursuant to the
Shelf Registration Statement to furnish to the Company such information regarding the
Holder and the distribution of the Securities as the Company may from time to time
reasonably require for inclusion in the Shelf Registration Statement, and the Company may
exclude from such registration the Securities of any Holder that unreasonably fails to
furnish such information within a reasonable time after receiving such request.

(o) The Company shall enter into such customary agreements (including, if requested,
an underwriting agreement in customary form) and take all such other action, if any, as any
Holder of the Securities shall reasonably request in order to facilitate the disposition of
the Securities pursuant to any Shelf Registration.

(p) In the case of any Shelf Registration, the Company shall (i) make reasonably
available for inspection by the Holders of the Securities, any underwriter participating in
any disposition pursuant to the Shelf Registration Statement and any attorney, accountant
or other agent retained by the Holders of the Securities or any such underwriter all
relevant financial and other records, pertinent corporate documents and properties of the
Company and (ii) cause the Company’s officers, directors, employees, accountants and
auditors to supply all relevant information reasonably requested by the Holders of the
Securities or any such underwriter, attorney, accountant or agent in connection with the
Shelf Registration Statement, in each case, as shall be reasonably necessary to enable such
persons, to conduct a reasonable investigation within the meaning of Section 11 of the
Securities Act; provided, however, that the foregoing inspection and information gathering
shall be coordinated on behalf of the Initial Purchasers by you and on behalf of the other
parties, by one counsel designated by and on behalf of such other parties as described in
Section 4 hereof.

(q) In the case of any Shelf Registration, the Company, if requested by any Holder of
Securities covered thereby, shall cause (i) its counsel to deliver an opinion and updates
thereof relating to the Securities in customary form addressed to such Holders and the
managing underwriters, if any, thereof and dated, in the case of the initial opinion, the
effective date of such Shelf Registration Statement (it being agreed that the matters to be
covered by such opinion shall include, without limitation, the due incorporation and good
standing of the Company and its subsidiaries; the qualification of the Company and its
subsidiaries

 

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to
transact business as foreign corporations; the due authorization, execution and delivery of the relevant agreement of
the type referred to in Section 3(o) hereof; the due authorization, execution,
authentication and issuance, and the validity and enforceability, of the applicable
Securities; the absence of material legal or governmental proceedings involving the Company
and its subsidiaries; the absence of governmental approvals required to be obtained in
connection with the Shelf Registration Statement, the offering and sale of the applicable
Securities, or any agreement of the type referred to in Section 3(o) hereof; the compliance
as to form of such Shelf Registration Statement and any documents incorporated by reference
therein and of the Indenture with the requirements of the Securities Act and the Trust
Indenture Act, respectively; and (A) as of the date of the opinion and as of the effective
date of the Shelf Registration Statement or most recent post-effective amendment thereto,
as the case may be, the absence from such Shelf Registration Statement and the prospectus
included therein, as then amended or supplemented, and from any documents incorporated by
reference therein and (B) as of an applicable time identified by such Holders or managing
underwriters, the absence from such prospectus taken together with any other documents
identified by such Holders or managing underwriters, in the case of (A) and (B), of an
untrue statement of a material fact or the omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading
(in the case of any such incorporated documents, in the light of the circumstances existing
at the time that such documents were filed with the Commission under the Exchange Act);
(ii) its officers to execute and deliver all customary documents and certificates and
updates thereof requested by any underwriters of the applicable Securities and (iii) its
independent public accountants to provide to the selling Holders of the applicable
Securities and any underwriter therefor a comfort letter in customary form and covering
matters of the type customarily covered in comfort letters in connection with primary
underwritten offerings, subject to receipt of appropriate documentation as contemplated,
and only if permitted, by Statement of Auditing Standards No. 72.

(r) In the case of the Registered Exchange Offer, if requested by any Initial
Purchaser or any known Participating Broker-Dealer, the Company shall cause (i) its counsel
to deliver to such Initial Purchaser or such Participating Broker-Dealer a signed opinion
in the form set forth in Section 7(c) of the Purchase Agreement with such changes as are
customary in connection with the preparation of a Registration Statement and (ii) its
independent public accountants to deliver to such Initial Purchaser or such Participating
Broker-Dealer a comfort letter, in customary form, meeting the requirements as to the
substance thereof as set forth in Section 7(a) of the Purchase Agreement, with appropriate
date changes.

(s) If a Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other Person as
directed by the Company) in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be, the Company shall mark, or caused to be marked, on the
Initial Securities so exchanged that such Initial Securities are being canceled in exchange
for the Exchange Securities or the Private Exchange Securities, as the case may be; in no
event shall the Initial Securities be marked as paid or otherwise satisfied.

(r) The Company will use its reasonable best efforts to (a) if the Initial Securities
have been rated prior to the initial sale of such Initial Securities, confirm such ratings
will apply to the Securities covered by a Registration Statement, or (b) if the Initial
Securities were not previously rated, cause the Securities covered by a Registration
Statement to be rated with the appropriate rating agencies, if so requested by Holders of a
majority in aggregate principal amount of Securities covered by such Registration
Statement, or by the managing underwriters, if any.

 

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(u) In the event that any broker-dealer registered under the Exchange Act shall
underwrite any Securities or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the Conduct Rules (the
“Rules”) of the Financial Industry Regulatory Authority, Inc. (“FINRA”)) thereof, whether
as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker
or dealer in respect thereof, or otherwise, the Company will assist such broker-dealer in
complying with the requirements of such Rules, including, without limitation, by (i) if
such Rules, including Rule 2720, shall so require, engaging a “qualified independent
underwriter” (as defined in Rule 2720) to participate in the preparation of the
Registration Statement relating to such Securities, to exercise usual standards of due
diligence in respect thereto and, if any portion of the offering contemplated by such
Registration Statement is an underwritten offering or is made through a placement or sales
agent, to recommend the yield of such Securities, (ii) indemnifying any such qualified
independent underwriter to the extent of the indemnification of underwriters provided in
Section 5 hereof and (iii) providing such information to such broker-dealer as may be
required in order for such broker-dealer to comply with the requirements of the Rules.

(v) The Company shall use its reasonable best efforts to take all other steps
necessary to effect the registration of the Securities covered by a Registration Statement
contemplated hereby.

4. Registration Expenses. The Company shall bear all fees and expenses incurred in
connection with the performance of its obligations under Sections 1 through 3 hereof (including the
reasonable fees and expenses, if any, of Vinson & Elkins LLP, counsel for the Initial Purchasers,
incurred in connection with the Registered Exchange Offer), whether or not the Registered Exchange
Offer or a Shelf Registration is filed or becomes effective, and, in the event of a Shelf
Registration, shall bear or reimburse the Holders of the Securities covered thereby for the
reasonable fees and disbursements of one firm of counsel designated by the Holders of a majority in
principal amount of the Initial Securities covered thereby to act as counsel for the Holders of the
Initial Securities in connection therewith.

5. Indemnification. (a) The Company agrees to indemnify and hold harmless each Holder of
the Securities, any Participating Broker-Dealer and each person, if any, who controls such Holder
or such Participating Broker-Dealer within the meaning of the Securities Act or the Exchange Act
(each Holder, any Participating Broker-Dealer and such controlling persons are referred to
collectively as the “Indemnified Parties”) from and against any losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof (including, but not limited to,
any losses, claims, damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise
out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in
any preliminary prospectus or “issuer free writing prospectus,” as defined in Commission Rule 433
(“Issuer FWP”), relating to a Shelf Registration, or arise out of, or are based upon, the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and shall reimburse, as incurred, the Indemnified
Parties for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action in respect thereof;
provided, however, that (i) the Company shall not be liable in any such case to the extent that
such loss, claim, damage or liability arises out of or is based upon any untrue statement or
alleged untrue statement or omission or alleged omission made in a Registration Statement or
prospectus or in any amendment or supplement thereto or in any preliminary prospectus or Issuer FWP
relating to a Shelf Registration in reliance upon and in conformity with written information
pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically
for inclusion therein and (ii) with respect to any untrue statement or omission or alleged untrue
statement or omission made in any preliminary prospectus relating to a Shelf Registration

 

10

 

Statement,
the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder or Participating Broker-Dealer from
whom the person asserting any such losses, claims, damages or liabilities purchased the Securities
concerned, to the extent that a prospectus relating to such Securities was required to be delivered
(including through satisfaction of the conditions of Commission Rule 172) by such Holder or
Participating Broker-Dealer under the Securities Act in connection with such purchase and any such
loss, claim, damage or liability of such Holder or Participating Broker-Dealer results from the
fact that there was not conveyed to such person, at or prior to the time of the sale of such
Securities to such person, an amended or supplemented prospectus or, if permitted by Section 3(d),
an Issuer FWP correcting such untrue statement or omission or alleged untrue statement or omission
if the Company had previously furnished copies thereof to such Holder or Participating
Broker-Dealer; provided further, however, that this indemnity agreement will be in addition to any
liability which the Company may otherwise have to such Indemnified Party. The Company shall also
indemnify underwriters, their officers and directors and each person who controls such underwriters
within the meaning of the Securities Act or the Exchange Act to the same extent as provided above
with respect to the indemnification of the Holders of the Securities if requested by such Holders.

(b) Each Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company and each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act from and against any losses, claims, damages or liabilities or
any actions in respect thereof, to which the Company or any such controlling person may become
subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus or Issuer FWP relating to a Shelf
Registration, or arise out of or are based upon the omission or alleged omission to state therein a
material fact necessary to make the statements therein not misleading, but in each case only to the
extent that the untrue statement or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with written information pertaining to such Holder and furnished to
the Company by or on behalf of such Holder specifically for inclusion therein; and, subject to the
limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Company
for any legal or other expenses reasonably incurred by the Company or any such controlling person
in connection with investigating or defending any loss, claim, damage, liability or action in
respect thereof. This indemnity agreement will be in addition to any liability which such Holder
may otherwise have to the Company or any of its controlling persons.

(c) Promptly after receipt by an indemnified party under this Section 5 of notice of the
commencement of any action or proceeding (including a governmental investigation), such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this
Section 5, notify the indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability that it may have
under subsection (a) or (b) above except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and provided further
that the failure to notify the indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under subsection (a) or (b) above. In case any
such action is brought against any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and, to the
extent that it may wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof the indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of investigation,
subsequently incurred by such indemnified party in connection with the defense thereof. No
indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any
indemnified party is or could have been a party and indemnity could have been sought hereunder by
such indemnified party unless such settlement (i) includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter of such action, and
(ii) does not include a statement as to or an admission of fault, culpability or a failure to act
by or on behalf of any indemnified party.

 

11

 

(d) If the indemnification provided for in this Section 5 is unavailable or insufficient to
hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in subsection (a) or (b)
above (i) in such proportion as is appropriate to reflect the relative benefits received by the
indemnifying party or parties on the one hand and the indemnified party on the other from the
exchange of the Securities, pursuant to the Registered Exchange Offer, or (ii) if the allocation
provided by the foregoing clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying party or parties on the one hand and the indemnified party on
the other in connection with the statements or omissions that resulted in such losses, claims,
damages or liabilities (or actions in respect thereof) as well as any other relevant equitable
considerations. The relative fault of the parties shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company on the one
hand or such Holder or such other indemnified party, as the case may be, on the other, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the subject of this
subsection (d). Notwithstanding any other provision of this Section 5(d), the Holders of the
Securities shall not be required to contribute any amount in excess of the amount by which the net
proceeds received by such Holders from the sale of the Securities pursuant to a Registration
Statement exceeds the amount of damages which such Holders have otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such
indemnified party within the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such indemnified party and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act shall have the same rights to
contribution as the Company.

(e) The agreements contained in this Section 5 shall survive the sale of the Securities
pursuant to a Registration Statement and shall remain in full force and effect, regardless of any
termination or cancellation of this Agreement or any investigation made by or on behalf of any
indemnified party.

6. Additional Interest Under Certain Circumstances. (a) Additional interest (the
“Additional Interest”) with respect to the Initial Securities shall be assessed as follows if any
of the following events occur (each such event in clauses (i) through (iii) below a “Registration
Default”:

(i) If by December 15, 2011, the Exchange Offer Registration Statement has not been
filed with the Commission;

(ii) If by May 14, 2012, the Exchange Offer Registration Statement is not declared
effective by the Commission;

 

12

 

(iii) if the Company fails to file the Shelf Registration Statement with the
Commission on or prior to the 30th day (the “Shelf Filing Date”) after the date on which
any obligation to file a Shelf Registration Statement under this Agreement arises;

(iv) if obligated to file a Shelf Registration Statement, the Shelf Registration
Statement is not declared effective on or prior to the later of the 90th day after the
Shelf Filing Date and May 14, 2012; or

(v) If after either the Exchange Offer Registration Statement or the Shelf
Registration Statement is declared (or becomes automatically) effective (A) such
Registration Statement thereafter ceases to be effective; or (B) such Registration
Statement or the related prospectus ceases to be usable (except as permitted in paragraph
(b)) in connection with resales of Transfer Restricted Securities during the periods
specified herein because either (1) any event occurs as a result of which the related
prospectus forming part of such Registration Statement would include any untrue statement
of a material fact or omit to state any material fact necessary to make the statements
therein in the light of the circumstances under which they were made not misleading, (2) it
shall be necessary to amend such Registration Statement or supplement the related
prospectus, to comply with the Securities Act or the Exchange Act or the respective rules
thereunder, or (3) such Registration Statement is a Shelf Registration Statement that has
expired before a replacement Shelf Registration Statement has become effective.

Additional Interest shall accrue on the Initial Securities over and above the interest set forth in
the title of the Securities from and including the date on which any such Registration Default
shall occur to but excluding the earlier of the date on which all such Registration Defaults have
been cured and the date such Initial Securities cease to be Transfer Restricted Securities, at a
rate of 0.25% per annum during the 90-day period immediately following the occurrence of any
Registration Default and shall increase by 0.25% per annum at the end of each subsequent 90-day
period, but in no event shall such increase exceed 1.00% per annum. Following the cure of all
Registration Defaults relating to the particular Initial Securities or such time as the particular
Initial Securities cease to be Transfer Restricted Securities the interest rate borne by the
relevant Initial Securities will be reduced to the original interest rate borne by such Securities;
provided, however, that, if after any such reduction in interest rate, a different Registration
Default occurs, the interest rate borne by the relevant Initial Securities shall again be increased
pursuant to the foregoing provisions.

(b) A Registration Default referred to in Section 6(a)(v)(B) hereof shall be deemed not to
have occurred and be continuing in relation to a Shelf Registration Statement or the related
prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a
post-effective amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the related prospectus or (y)
other material events, with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and
related prospectus to describe such events; provided, however, that in any case if such
Registration Default occurs for a continuous period in excess of 30 days, Additional Interest shall
be payable in accordance with the above paragraph from the day such Registration Default occurs
until such Registration Default is cured.

(c) Any amounts of Additional Interest due pursuant to Section 6(a) above will be payable in
cash on the regular interest payment dates with respect to the Initial Securities. The amount of
Additional Interest will be determined by multiplying the applicable Additional Interest rate by
the principal amount of the Initial Securities, multiplied by a fraction, the numerator of which is
the number of days such Additional
Interest rate was applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months), and the denominator of which is 360.

 

13

 

(d) “Transfer Restricted Securities” means each Security until (i) the date on which such
Transfer Restricted Security has been exchanged by a person other than a broker-dealer for a freely
transferable Exchange Security in the Registered Exchange Offer, (ii) following the exchange by a
broker-dealer in the Registered Exchange Offer of a Initial Security for an Exchange Note, the date
on which such Exchange Note is sold to a purchaser who receives from such broker-dealer on or prior
to the date of such sale a copy of the prospectus contained in the Exchange Offer Registration
Statement, or (iii) the date on which such Securities cease to be outstanding.

7. Rules 144 and 144A. The Company shall use its reasonable best efforts to file the reports
required to be filed by it under the Securities Act and the Exchange Act in a timely manner and, if
at any time the Company is not required to file such reports, it will, upon the request of any
Holder of Initial Securities, make publicly available other information so long as necessary to
permit sales of their securities pursuant to Rules 144 and 144A. The Company covenants that it
will take such further action as any Holder of Initial Securities may reasonably request, all to
the extent required from time to time to enable such Holder to sell Initial Securities without
registration under the Securities Act within the limitation of the exemptions provided by Rules 144
and 144A (including the requirements of Rule 144A(d)(4)). The Company will provide a copy of this
Agreement to prospective purchasers of Initial Securities identified to the Company by the Initial
Purchasers upon request. Upon the request of any Holder of Initial Securities, the Company shall
deliver to such Holder a written statement as to whether it has complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to
register any of its securities pursuant to the Exchange Act.

8. Underwritten Registrations. If any of the Transfer Restricted Securities covered by any
Shelf Registration are to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will administer the offering (“Managing Underwriters”) will be
selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted
Securities to be included in such offering.

No person may participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve such arrangements
and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting
arrangements.

9. Miscellaneous.

(a) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given,
except by the Company and the written consent of the Holders of a majority in principal amount of
the Securities affected by such amendment, modification, supplement, waiver or consents.

(b) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand delivery, first-class mail, facsimile transmission, or air courier which
guarantees overnight delivery:

(1) if to a Holder of the Securities, at the most current address given by such Holder to the
Company.

 

14

 

	 	(2)	 	if to the Initial Purchasers;

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, NY 10036

Fax No.: (212) 901-7897

Attention: Legal Department

with a copy to:

Vinson & Elkins LLP

First City Tower, 1001 Fannin Street, Suite 2500

Houston, TX 77002-6760

Fax No.: (713) 615-5962

Attention: James M. Prince

	 	(3)	 	if to the Company, at its address as follows:

Brigham Exploration Company

6300 Bridge Point Parkway

Building Two, Suite 500

Austin, Texas 78730

Fax No.: (512) 427-3400

Attention: General Counsel

with a copy to:

Thompson & Knight LLP

1722 Routh Street, Suite 1500

Dallas, Texas 75201

Fax No: (214) 969-1780

Attention: Joe Dannenmaier

All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator,
if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

(c) No Inconsistent Agreements. The Company has not, as of the date hereof, entered into,
nor shall it, on or after the date hereof, enter into, any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the
provisions hereof.

(d) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns.

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

 

15

 

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

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

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

(i) Securities Held by the Company. Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities is required hereunder, Securities held by
the Company or its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such Securities) shall
not be counted in determining whether such consent or approval was given by the Holders of such
required percentage.

[Remainder of Page Left Intentionally Blank — Signature Pages Follow]

 

16

 

If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Issuer a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement among the several Initial Purchasers, the Issuer and the Guarantors
in accordance with its terms.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Brigham Exploration Company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Eugene B. Shepherd, Jr.	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	Title:
	 	Chief Financial Officer and	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Brigham, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Eugene B. Shepherd, Jr.	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	Title:
	 	Chief Financial Officer and	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Brigham Oil & Gas, L.P.	 	 
	 	 	By: Brigham, Inc., its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Eugene B. Shepherd, Jr.	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Eugene B. Shepherd, Jr.	 	 
	 

	 	 	 	Title:
	 	Chief Financial Officer and	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 

[Signature page to Registration Rights Agreement]

 

 

 

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

Acting on behalf of themselves

and as the Representatives of

the several Initial Purchasers

	 	 	 	 	 	 	 	 	 
	By Merrill Lynch, Pierce, Fenner & Smith Incorporated	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ J. Lex Maultsby	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	J. Lex Maultsby	 	 
	 

	 	 	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	By Credit Suisse Securities (USA) LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Robert Hendricks	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robert Hendricks	 	 
	 

	 	 	 	Title:
	 	Director	 	 

[Signature page to Registration Rights Agreement]

 

 

 

ANNEX A

Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities
received in exchange for Initial Securities where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date (as defined herein), it will make
this Prospectus available to any broker-dealer for use in connection with any such resale. See
“Plan of Distribution.”

 

 

 

ANNEX B

Each broker-dealer that receives Exchange Securities for its own account in exchange for
Securities, where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution.”

 

 

 

ANNEX C

PLAN OF DISTRIBUTION

Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time,
may be used by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed that, for a period of
180 days after the Expiration Date (or such shorter period during which exchanging broker-dealer or
initial purchaser is required by law to deliver a prospectus), it will make this prospectus, as
amended or supplemented, available to any broker-dealer for use in connection with any such resale.
In addition, until
 _____, 20
 _____, all dealers effecting transactions in the Exchange
Securities may be required to deliver a prospectus.(1)

The Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers. Exchange Securities received by broker-dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or negotiated prices. Any such resale
may be made directly to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such broker-dealer or the purchasers of any such
Exchange Securities. Any broker-dealer that resells Exchange Securities that were received by it
for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter” within the meaning of
the Securities Act and any profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting compensation under the
Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and
by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act.

For a period of 180 days after the Expiration Date (or such shorter period during which
exchanging broker-dealer or initial purchaser is required by law to deliver a prospectus), the
Company will promptly send additional copies of this Prospectus and any amendment or supplement to
this Prospectus to any broker-dealer that requests such documents in the Letter of Transmittal.
The Company has agreed to pay all expenses incident to the Exchange Offer (including the expenses
of one counsel for the Holders of the Securities) other than commissions or concessions of any
brokers or dealers and will indemnify the Holders of the Securities (including any broker-dealers)
against certain liabilities, including liabilities under the Securities Act.

 

	 	 	 
	(1) 	 	 In addition, the legend required by Item 502(e) of
Regulation S-K will appear on the back cover page of the Exchange Offer
prospectus.

 

 

 

ANNEX D

o CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS
AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

	 	 	 	 	 
	Name:
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in,
and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Initial
Securities that were acquired as a result of market-making activities or other trading activities,
it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange
Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not
be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.exv10w1

Exhibit 10.1

SEPARATION AND RELEASE AGREEMENT

     THIS SEPARATION AND RELEASE AGREEMENT (this “Agreement”) is made as of the 5th day of July,
2011, by and between G. Michael Morgan (the “Executive”) and Harvest Natural Resources, Inc. (the
“Company”).

     WHEREAS, the Executive’s employment as an executive and employee of the Company terminated on
July 5, 2011 (the “Termination Date”);

     WHEREAS, pursuant to Section 4(a)(2) of the Employment Agreement by and between the Company
and the Executive dated effective January 1, 2009 (the “Employment Agreement”), the Company has
agreed to pay the Executive certain amounts which are described further in this Agreement; and

     WHEREAS, the Executive and the Company are executing this Agreement to evidence the
termination of the Executive’s employment with the Company and all affiliates, the payments and
other obligations of the Company in connection with the termination of the Executive’s employment
and the Executive’s obligations in connection with the termination of the Executive’s employment.

     NOW THEREFORE, in consideration of these premises and the mutual promises contained herein,
and intending to be legally bound hereby, the parties agree as follows:

     1. Termination Payments and Consideration.

          1.1 The Executive and the Company acknowledge and agree that the Executive incurred a
Separation from Service, as that term is defined in Section 4(a)(2) of the Employment Agreement,
from the Company on the Termination Date.

          1.2 The Executive acknowledges that: (i) the payments and terms (which are summarized on
Appendix 1 hereto) set forth in Section 4(a)(2) of the Employment Agreement constitute full
settlement of all his rights under the Employment Agreement, (ii) he has no entitlement under any
other severance or similar arrangement maintained by the Company, including the Company’s Policy
for Termination and Separation of Employment and (iii) except as otherwise provided specifically in
this Agreement, the Company does not and will not have any other liability or obligation to the
Executive.

          1.3 Prior to the Termination Date, the Company has issued to the Executive (i) a Stock Unit
Award Agreement dated as of June 18, 2009 (the “Stock Unit Award Agreement”) which grants as of
June 18, 2009 to the Executive 12,500 Stock Units (the “Stock Units”) and (ii) a Stock Appreciation
Right Award Agreement dated as of June 18, 2009 (the “SAR Award Agreement”) which grants as of June
18, 2009 to the Executive a stock appreciation right (the “SAR”) with respect to 25,000 shares of
the Company’s common stock, par value $0.01 per share (the “Company’s Common Stock”). The Company
agrees that in consideration for the Executive executing this Agreement that (i) the Stock Unit
Award Agreement has been amended to provide that all of the Forfeiture Restrictions (as that term
is defined in the Stock Unit Award Agreement) to which the Stock Units are subject on the
Termination Date shall lapse effective as of the Termination Date if this Agreement is not

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revoked or rescinded by the Executive and the Company shall pay the amount payable with
respect to the Stock Units on July 15, 2011, and (ii) the SAR Award Agreement has been amended to
provide that all of the vesting restrictions to which the SAR is subject on the Termination Date
shall lapse effective as of the Termination Date if this Agreement is not revoked or rescinded by
the Executive in which case the SAR will become fully vested on the Termination Date and may be
exercised before 5:00 p.m. (Central Time) on July 5, 2012 and otherwise in accordance with the
terms of the SAR Award Agreement. Notwithstanding any other provision of this Agreement, the Stock
Unit Award Agreement or the SAR to the contrary, (i) the Executive will not be paid any amount
under the Stock Unit Award Agreement with respect to any of the Stock Units and the Executive shall
forfeit all rights to any such payment unless the period for revoking this Agreement shall have
expired prior to July 15, 2011 and the Executive has not revoked or rescinded this Agreement prior
to July 15, 2011, (ii) the Executive will not be entitled to exercise the SAR or receive any
payment under the SAR or the SAR Award Agreement during the period that the Executive may revoke or
rescind this Agreement and (iii) if the Executive revokes or rescinds this Agreement the Executive
shall forfeit all rights to exercise the SAR or receive any payment under the SAR or the SAR Award
Agreement and the SAR and the SAR Award Agreement shall terminate effective as of July 5, 2011.
The Executive acknowledges that the vesting rights described above in this Section 1.3 constitute
good and sufficient consideration of the mutual promises contained in this Agreement.

     2. Release and Covenant Not to Sue.

          2.1 The Executive, his heirs and representatives release, waive and forever discharge the
Company, its predecessors and successors, assigns, stockholders, subsidiaries, parents, affiliates,
officers, directors, trustees, current and former employees, agents and attorneys, past and present
and in their respective capacities as such (the Company and each such person or entity is each
referred to as a “Released Person”) from all pending or potential claims, counts, causes of action
and demands of any kind whatsoever or nature for money or anything else, whether such claims are
known or unknown, that arose prior to the Executive’s signing this Agreement or that relate in any
way to the Executive’s employment or termination of employment with the Company. This release
includes, but is not limited to, any and all claims of race discrimination, sexual discrimination,
national origin discrimination, religious discrimination, disability discrimination, age
discrimination and unlawful retaliation and any and all claims under the following: Title VII of
the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq.; Civil Rights Act of 1866, 42
U.S.C. § 1981 et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601, et seq.; the
Americans with Disabilities Act, as amended, 42 U.S.C. § 12101, et seq.; the Age Discrimination in
Employment Act, as amended by the Older Workers Benefit Protection Act, 29 U.S.C. § 621, et seq.;
Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001, et seq.;
Rehabilitation Act of 1973, 29 U.S.C. § 706, et seq.; any state, municipal and other local
anti-discrimination statutes; any and all claims for alleged breach of an express or implied
contract; any and all tort claims including, but not limited to, alleged retaliation for assertion
of workers’ compensation rights; any and all claims under workers’ compensation law; and any and
all claims for attorney’s fees.

          2.2 The Executive expressly represents that he has not filed a lawsuit or initiated any other
administrative proceeding against a Released Person and that he has not assigned any claim against
a Released Person. The Executive further promises not to initiate a

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lawsuit or to bring any other claim against any Released Person arising out of or in any way
related to the Executive’s employment by the Company or the termination of that employment. This
Agreement will not prevent the Executive from filing a charge with the Equal Employment Opportunity
Commission (or similar state agency) or participating in any investigation conducted by the Equal
Employment Opportunity Commission (or similar state agency); provided, however, that any claims by
the Executive for personal relief in connection with such a charge or investigation (such as
reinstatement or monetary damages) would be barred. In addition, this release shall not affect the
Executive’s rights under the Older Workers Benefit Protection Act to have a judicial determination
of the validity of this release and waiver.

          2.3 The foregoing will not be deemed to release the Company from (a) claims solely to enforce
this Agreement, (b) claims for indemnification under the Company’s By-Laws and/or any applicable
indemnification agreements, and/or (c) claims to continue health care coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended or similar state law. The
foregoing will not be deemed to release any person or entity from claims arising after the date of
this Agreement, whether under this Agreement, under the Employment Agreement or otherwise,
including any additional benefits payable under Section 4.2(a)(3)(t), (y) and (z) if a Change of
Control (as that term is defined in the Employment Agreement) occurs within 240 days after the
Termination Date.

     3. Restrictive Covenants. The Executive acknowledges that the restrictive covenants
contained in Section 5 of the Employment Agreement (the “Restrictive Covenants”) will survive the
termination of Executive’s employment. The Executive affirms that the Restrictive Covenants are
reasonable and necessary to protect the legitimate interests of the Company, that he received
adequate consideration in exchange for agreeing to those restrictions and that he will abide by
those restrictions and all provisions of Section 5 of the Employment Agreement.

     4. Return of Company Property. The Executive represents and warrants that he has
returned all property belonging to the Company, including, but not limited to, all keys, access
cards, office equipment, computers, cellular telephones, notebooks, documents, records, files,
written materials, electronic information, credit cards bearing the Company’s name, and other
Company property (originals or copies in whatever form) in the Executive’s possession or under the
Executive’s control.

     5. Cooperation. The Executive further agrees that, subject to reimbursement of his
reasonable expenses, he will cooperate fully with the Company and its counsel with respect to any
matter (including litigation, investigations, or governmental proceedings) in which the Executive
was in any way involved during his employment with the Company; provided that such cooperation
shall not unreasonably interfere with Executive’s employment with another employer after
termination of his employment with the Company. The Executive shall render such cooperation in a
timely manner on reasonable notice from the Company.

     6. Rescission Right. The Executive expressly acknowledges and recites that (a) he has
read and understands the terms of this Agreement in its entirety; (b) he has entered into this
Agreement knowingly and voluntarily, without any duress or coercion; (c) he has been advised orally
and is hereby advised in writing to consult with an attorney with respect to this Agreement before
signing it; (d) he was provided twenty-one (21)

-3-

 

calendar days after receipt of the Agreement to consider its terms before signing it; and (e) he is
provided seven (7) calendar days from the date of signing to terminate and revoke this Agreement,
in which case this Agreement shall be unenforceable, null and void. The Executive may revoke this
Agreement during those seven (7) days by providing written notice of revocation to the Vice
President of Human Resources and Administration of the Company.

     7. Challenge. If the Executive violates or challenges the enforceability of any
provisions of the Restrictive Covenants or this Agreement, no further payments, rights or benefits
under Section 4(a)(2) of the Employment Agreement will be due to the Executive.

     8. Miscellaneous.

          8.1 No Admission of Liability. This Agreement is not to be construed as an admission
of any violation of any federal, state or local statute, ordinance or regulation or of any duty
owed by the Company to the Executive. There have been no such violations, and the Company
specifically denies any such violations.

          8.2 Arbitration. The parties agree that Section 6(c) of the Employment Agreement
shall survive and be applicable to this Agreement.

          8.3 No Reinstatement. The Executive agrees that he will not without the consent of the
Company apply for reinstatement with the Company or seek in any way to be reinstated, re-employed
or hired by the Company in the future.

          8.4 Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the Company and the Executive and their respective successors, permitted assigns,
executors, administrators and heirs. The Executive may not make any assignment of this Agreement or
any interest herein, by operation of law or otherwise. The Company may assign this Agreement to any
successor to all or substantially all of its assets and business by means of liquidation,
dissolution, merger, consolidation, transfer of assets, or otherwise.

          8.5 Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law. However, if any
provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability will not affect any other provision, and this Agreement
will be reformed, construed and enforced as though the invalid, illegal or unenforceable provision
had never been herein contained.

          8.6 Entire Agreement; Amendments. Except as otherwise provided herein, this Agreement
contains the entire agreement and understanding of the parties hereto relating to the subject
matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the subject matter hereof. This Agreement may not be
changed or modified, except by an agreement in writing signed by each of the parties hereto.

-4-

 

          8.7 Governing Law. This Agreement shall be governed by, and enforced in accordance
with, the laws of the State of Texas, without regard to the application of the principles of
conflicts of laws.

          8.8 Counterparts and Facsimiles. This Agreement may be executed, including execution
by facsimile signature, in multiple counterparts, each of which shall be deemed an original, and
all of which together shall be deemed to be one and the same instrument.

-5-

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Executive has executed this Agreement, in each case effective as of the
date first above written.

	 	 	 	 	 	 	 

	 

	 	EMPLOYEE:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	G. Michael Morgan	 	 
	 
	 	 	 	 	 	 
	 	 	Date:                                                                                 , 2011	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	HARVEST NATURAL RESOURCES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 		 	 
	 

	 	 	 	 
	 	 
	 
	 

	 	Name:	 	 

	 	 
	 

	 	 	 	 
	 	 
	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Date:                                                                                  , 2011	 	 

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APPENDIX 1 TO

SEPARATION AND RELEASE AGREEMENT

Payments

Pursuant to Section 4(a)(2) of the Employment Agreement, the Executive is entitled to the following
payments upon termination of his employment by the Company pursuant to Section 4(a)(1):

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Date Amount to be
	Description of Payment	 	Payment	 	Paid
	An amount equal to 24 months of the
Executive’s $25,500 monthly base salary,
which shall be paid on the date that is
six months following the Termination Date
	 	$	612,000	 	 	January 2, 2012
	 
	 	 	 	 	 	 	 	 
	An amount equal to 24 months of the
maximum contribution the Company may make
for the Executive under the Company’s
401(k) profit sharing plan, which shall
be paid on the date that is six months
following the Termination Date
	 	$	19,600	 	 	January 2, 2012

Vesting of Stock Option and Restricted Stock Awards

Below is a list of the stock options granted by the Company to the Executive that are outstanding
as of the Termination Date (the “Stock Options”). Pursuant to Section 4(a)(2) of the Employment
Agreement, the Stock Options became fully vested on the Termination Date and are exercisable before
5:00 p.m. (Central Time) on July 5, 2012, in accordance with the terms of the applicable award
agreements for the Stock Options:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	Number of Shares
	 	 	Title of Applicable Award	 	Shares Subject	 	Not Vested as of
	Grant Date	 	Agreement	 	to Award	 	Termination Date
	May 19, 2008

	 	Harvest Natural Resources

Stock Option Agreement
	 	 	100,000	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 
	June 18, 2009

	 	Harvest Natural Resources

2006 Long Term Incentive Plan

Stock Option Agreement
	 	 	13,000	 	 	 	8,667	 
	 
	 	 	 	 	 	 	 	 	 	 
	May 20, 2010

	 	Harvest Natural Resources

2010 Long Term Incentive Plan

Stock Option Award Agreement
	 	 	12,000	 	 	 	8,000	 

Appendix 1 — Page 1

 

 

Below is a list of the awards of restricted shares of the Company’s Common Stock granted by the
Company to the Executive that are outstanding as of the Termination Date (the “Restricted Stock
Awards”). Pursuant to Section 4(a)(2) of the Employment Agreement, the restriction period for each
of the Restricted Stock Awards lapsed and the Restricted Stock Awards became fully vested on the
Termination Date. On or before August 4, 2011, the Company will deliver to the Executive
certificates representing the shares of the Company’s Common Stock to be delivered to the Executive
under and in accordance with the Restricted Stock Awards.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	Number of Shares
	 	 	Title of Applicable Award	 	Shares Subject	 	Not Vested as of
	Grant Date	 	Agreement	 	to Award	 	Termination Date
	June 18, 2009

	 	Harvest Natural Resources

2004 Long Term Incentive

Plan Employee Restricted

Stock Agreement
	 	 	12,500	 	 	 	12,500	 
	 
	 	 	 	 	 	 	 	 	 	 
	May 20, 2010

	 	Harvest Natural Resources

2010 Long Term Incentive

Plan Employee Restricted

Stock Award Agreement
	 	 	4,400	 	 	 	4,400	 

Reimbursements

Pursuant to Section 4(a)(2) of the Employment Agreement, the Executive shall be reimbursed by the
Company for up to $20,000 of outplacement services with an outplacement service approved by the
Vice President of Human Resources and Administration of the Company provided that the expenses for
the outplacement services are reasonable and are incurred no later than December 31, 2013.

Additional Benefits — Consideration for Annual Performance Bonus

The Employee will be evaluated as part of the Company’s discretionary annual performance bonus
program for the year 2011 and may receive a prorated amount of the annual performance bonus for the
year 2011 the Employee could have received under the program if he had remained an employee of the
Company, as determined in the sole discretion of the Company and payable at the time determined by
Company.

Appendix 1 — Page 2

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