Document:

Filed by Bowne Pure Compliance

Exhibit 10.45

BRIGHAM EXPLORATION COMPANY

1997 INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

THIS AGREEMENT, made as of the
 _____ 
day of
 _____, 20
 _____, by and between BRIGHAM
EXPLORATION COMPANY, a Delaware corporation (the “Company”), and
 _____ 
(“Employee”);

W I T N E S S E T H:

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the
“Committee”), acting under the Company’s 1997 Incentive Plan, as amended (the “Plan”), has
determined that it is desirable to award shares of restricted stock to Employee under the Plan; and

WHEREAS, pursuant to the Plan, the Committee has determined that the shares of restricted
stock so awarded shall be subject to the restrictions, terms and conditions of this Agreement;

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

1. Plan Provisions. Capitalized terms used and not otherwise defined herein shall
have the respective meanings given such terms in the Plan. By execution of this Agreement, Employee
agrees that the Restricted Stock covered hereby shall be governed by and subject to all applicable
provisions of the Plan. This Agreement is subject to the Plan, and the Plan shall govern where
there is any inconsistency between the Plan and this Agreement.

2. Restricted Stock. On the terms and conditions and subject to the restrictions,
including forfeiture, hereinafter set forth, the Company hereby makes to Employee, and Employee
hereby accepts, the awards of Restricted Stock (each such issuance is herein called an “Award”) set
forth on Exhibit A hereto, which awards are being issued by the Company pursuant to the
Plan. The number of shares of Restricted Stock of each Award covered hereby (the “Restricted
Shares”), the date of issuance of such shares (the “Issue Date”), and the Restricted Period
applicable to such shares, including the date on which such Restricted Period is scheduled to
terminate (the “Scheduled Termination Date”), are set forth on Exhibit A attached hereto. A
certificate or certificates representing the Restricted Shares shall be issued in the name of
Employee as of the applicable Issue Date and delivered to Employee on such Issue Date or as soon
thereafter as practicable. Employee shall cause the certificate(s) representing the Restricted
Shares, upon receipt thereof by Employee, to be deposited, together with stock powers and any other
instrument of transfer reasonably requested by the Company duly endorsed in blank, with the
Company, to be held by the Company in escrow for Employee’s benefit until such time as any
Restricted Shares represented by such certificate(s) are forfeited to the Company or the
restrictions thereon terminate. Restricted Shares shall be delivered to Employee upon vesting or
assigned and transferred to and reacquired by the Company upon forfeiture, as hereinafter set
forth.

3. Vesting/Forfeiture.

(a) Subject to Sections 3(b), 3(c) and 3(d), with respect to each Award of Restricted
Shares to Employee, the Restricted Shares subject to such Award shall be forfeited to the Company
at no cost to the Company if Employee’s employment with the Company or a subsidiary of the Company
terminates prior to the termination of the Restricted Period applicable to such Restricted Shares.

(b) Upon Employee’s termination of employment during the Restricted Period due to death
during the Restricted Period, then, the Awards covered hereby that have not vested shall be deemed
to have vested as of the date of the Employee’s death and the Restricted Period applicable to such
shares shall terminate.

 

 

 

(c) Upon (i) Employee’s termination of employment during the Restricted Period due to
Disability (as defined below), or (ii) the involuntary termination of Employee’s employment with
the Company and its subsidiaries by action of the Company (or its subsidiary, if Employee is
employed by a subsidiary of the Company) during the Restricted Period for reasons other than Just
Cause (as defined below) (each, a “Termination Event”), then, with respect to the Award covered
hereby with the earliest Scheduled Termination Date after such Termination Event, (A) a ratable
portion of the number of Restricted Shares applicable to such Scheduled Termination Date (the “Next
Vested Shares”) shall be deemed to have vested as of the date of such Termination Event, determined
by multiplying the number of Next Vested Shares by a fraction with a numerator equal to the number
of full months which have then elapsed since the last date of termination of a Restricted Period
pursuant to this Agreement (or Issue Date in the event that no shares had previously vested) and a
denominator equal to the total number of months between the last date of termination of a
Restricted Period pursuant to this Agreement (or Issue Date in the event that no shares had
previously vested) and the next Scheduled Termination Date under this Agreement, and rounding to
the closest whole number, and (B) the Restricted Period applicable to such ratable portion of Next
Vested Shares shall terminate.

(d) If either (1) Ben M. Brigham is no longer both the Chief Executive Officer and
Chairman of the Board of the Company, or (2) any “person,” as that term is defined in Section
3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) (other than the Company, any of
its subsidiaries, any employee benefit plan of the Company or any of its subsidiaries, or any
entity organized, appointed or established by the Company for or pursuant to the terms of such a
plan), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2
under the Exchange Act) of such person, or any “Person” or “group” (as those terms are used in
Sections 13(d) and 14(d) of the Exchange Act), becomes the “beneficial owner” or “beneficial
owners” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of
securities of the Company representing in the aggregate forty-nine percent (49%) or more of either
the then outstanding shares of Common Stock of the Company or the voting power of the Company, in
either such case (each of the events described in (1) and (2) above being referred to herein as a
“Fundamental Change”), and Recipient’s employment with the Company is involuntarily terminated
within two (2) years of such Fundamental Change, then immediately upon such termination, the
Restricted Shares covered hereby that have not vested shall vest as of such date and the Restricted
Period applicable to such Restricted Shares shall terminate. In the event that within two (2)
years of a Fundamental Change Employee’s job responsibilities are substantially reduced, his annual
salary is reduced, or he is required to move his office location more than 30 miles from its
existing location, and Employee terminates his employment due to such reduction or required move
within 15 days of such reduction or the announcement of the required move, then Employee shall be
deemed to have been involuntarily terminated for purposes of this paragraph, and immediately upon
such termination, the Restricted Shares covered hereby that have not vested shall vest as of such
date and the Restricted Period applicable to such Restricted Shares shall terminate.

(e) Unless and until Restricted Shares are delivered to Employee upon vesting, such
Restricted Shares shall not be sold, assigned, transferred, discounted, exchanged, pledged, or
otherwise encumbered or disposed of by Employee in any manner. Transfer of employment without
interruption of service between or among the Company and any of its subsidiaries shall not be
considered a termination of employment.

(f) With respect to each Award of Restricted Shares to Employee, upon the termination of
the Restricted Period applicable to such shares, the restrictions applicable to the Restricted
Shares that have not theretofore been forfeited shall terminate, and as soon as practicable
thereafter a stock certificate for the number of Restricted Shares with respect to which the
restrictions have terminated, together with any dividends or other distributions with respect to
such shares then being held by the Company pursuant to the
provisions of this Agreement, shall be delivered, free of all such restrictions, to Employee
or Employee’s beneficiary or estate, as the case may be.

 

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(g) Notwithstanding anything contained herein to the contrary, the Committee shall have
the right to cancel all or any portion of any outstanding restrictions prior to the termination of
such restrictions with respect to any or all of the Restricted Shares on such terms and conditions
as the Committee may, in writing, deem appropriate.

(h) For purposes of this Agreement, the following terms shall have the indicated meanings:

Disability: The “Disability” of Employee shall be deemed to have occurred if, in the good
faith judgment of the Committee, Employee shall become unable to continue the proper performance of
Employee’s duties as an employee of the Company or a subsidiary thereof on a full-time basis as a
result of Employee’s physical or mental incapacity.

Just Cause: The term “Just Cause” shall mean any of the following: (i) conduct by Employee
that constitutes willful misconduct or gross negligence in the performance of his duties; (ii)
conduct by the Employee that constitutes fraud, dishonesty, or a criminal act, whether or not with
respect to the Company; (iii) embezzlement of funds or misappropriation of other property by
Employee, (iv) any act or conduct by Employee that, in the good faith opinion of the Board of
Directors or the President of the Company, is materially detrimental to the Company or reflects
unfavorably on the Company or the Employee to such an extent that the Company’s best interests
reasonably require the Employee’s discharge.

4. Rights as Stockholder. Upon the issuance of a certificate or certificates
representing any Restricted Shares to Employee, Employee shall become the owner thereof for all
purposes and shall have all rights as a stockholder, including voting rights and the right to
receive dividends and distributions, with respect to such Restricted Shares, subject to the
provisions hereof. If the Company shall pay or declare a dividend or make a distribution of any
kind, whether due to a reorganization, recapitalization or otherwise, with respect to the shares of
Common Stock constituting Restricted Shares, then the Company shall pay or make such dividend or
other distribution with respect to such Restricted Shares; provided, however, that the cash, stock
or other securities and other property constituting such dividend or other distribution shall be
held by the Company subject to the restrictions applicable to the Restricted Shares until such
Restricted Shares with respect to which such dividend or other distribution was paid or made are
either vested or forfeited; provided further, that no dividend or other distribution shall be
payable upon the vesting of Restricted Shares in accordance with Section 3(d). If any Restricted
Shares with respect to which such dividend or distribution was paid or made do not vest but instead
are forfeited pursuant to the provisions hereof, then Employee shall not be entitled to receive
such dividend or distribution with respect to such forfeited shares and such dividend or
distribution with respect to such forfeited shares shall likewise be forfeited and automatically
transferred to and reacquired by the Company. If any Restricted Shares with respect to which such
dividend or distribution was paid or made vest in accordance with Section 3(d), then Employee shall
not be entitled to receive such dividend or distribution with respect to such Restricted Shares and
such dividend or distribution with respect to such Restricted Shares shall be forfeited and
automatically transferred to and reacquired by the Company. If any Restricted Shares with respect
to which such dividend or distribution was paid or made become vested pursuant to the provisions
hereof other than Section 3(d), then Employee shall be entitled to receive such dividend or
distribution with respect to such vested shares, without interest, and such dividend or
distribution with respect to such vested shares shall likewise be delivered to Employee. Any
amount payable pursuant to the preceding sentence shall be paid to the Employee as soon as
administratively practicable but no later than the March 15th following the end of the
calendar year in which the right to such payment is no longer subject to a substantial risk of
forfeiture under Section 409A of the Internal Revenue Code.

 

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5. Withholding Taxes.

(a) With respect to each Award of shares of Restricted Stock to Employee, Employee may
elect, within 30 days of the Issue Date of such shares and on notice to the Company, to realize
income for federal income tax purposes equal to the fair market value of the shares on the Issue
Date. In such event, Employee shall make arrangements satisfactory to the Compensation Committee to
pay in the year of the Award any federal, state, or local taxes required to be withheld with
respect to such shares. If Employee fails to make such payments, then any provision of this
Agreement to the contrary notwithstanding, the Company and its subsidiaries shall, to the extent
permitted by law, have the right to deduct from any payments of any kind otherwise due from the
Company or its subsidiaries to or with respect to Employee, whether or not pursuant to this
Agreement or the Plan and regardless of the form of payment, any federal, state, or local taxes of
any kind required by law to be withheld with respect to such shares.

(b) (i) No later than the date of the termination of the restrictions on any of the
shares of Restricted Stock covered hereby, Employee will pay to the Company or its subsidiaries, or
make arrangements satisfactory to the Compensation Committee regarding payment of, any statutory
minimum taxes required by law to be withheld with respect to the shares of Restricted Stock with
respect to which such restrictions have terminated.

(ii) The Company may elect to allow Employee, to the extent permitted by law, to deliver
to the Company or its subsidiaries shares of Restricted Stock to which Employee shall be entitled
upon the vesting thereof (or other unrestricted shares of Common Stock owned by Employee), valued
at the fair market value of such shares at the time of such delivery to the Company or its
subsidiaries, to satisfy the obligation of Employee under Section 5(b)(i) hereof.

(iii) Any provision of this Agreement to the contrary notwithstanding, if Employee does
not otherwise satisfy the obligation of Employee under Section 5(b)(i) hereof, then the Company and
its subsidiaries shall, to the extent permitted by law, have the right to deduct from any payments
of any kind otherwise due from the Company or its subsidiaries to or with respect to Employee,
whether or not pursuant to this Agreement or the Plan and regardless of the form of payment, any
federal, state, or local taxes of any kind required by law to be withheld with respect to the
shares of Restricted Stock with respect to which the restrictions on the Restricted Stock have
terminated.

6. Legend. Each certificate representing shares of Restricted Stock covered hereby
shall conspicuously set forth on the face or back thereof, in addition to any legends required by
applicable law or other agreement, a legend in substantially the following form:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ASSIGNED AND TRANSFERRED TO THE RECORD HOLDER
HEREOF PURSUANT TO THE TERMS OF THE BRIGHAM EXPLORATION COMPANY 1997 INCENTIVE PLAN AND MAY NOT BE
SOLD, ASSIGNED, TRANSFERRED, DISCOUNTED, EXCHANGED, PLEDGED, OR OTHERWISE ENCUMBERED OR DISPOSED OF
IN ANY MANNER EXCEPT AS SET FORTH IN THE TERMS OF THE AGREEMENT EMBODYING THE AWARD OF SUCH SHARES
DATED
                   , 20 _____. A COPY OF SUCH PLAN AND AGREEMENT IS ON FILE IN THE OFFICES OF THE
CORPORATION.

7. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware, without regard to the principles of conflicts of
laws thereof.

8. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective heirs, personal representatives, successors, and permitted
assigns; provided, however, that Employee shall not assign or otherwise transfer this Agreement or
any of Employee’s rights or obligations hereunder.

 

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9. Entire Agreement; Amendment. This Agreement, together with the exhibits hereto
and any other writings referred to herein or delivered pursuant hereto, constitute the entire
agreement between the parties hereto with respect to the subject matter hereof and supersede all
prior agreements and understandings, whether written or oral, between the parties with respect to
the subject matter hereof. To the fullest extent provided by applicable law, this Agreement may be
amended, modified, and supplemented by mutual consent of the parties hereto at any time, with
respect to any of the terms contained herein, in such manner as may be agreed upon in writing by
such parties.

10. Notices. All notices and other communications hereunder shall be in writing
and shall be deemed given:

(a) If to the Company, when delivered by hand or on the third business day after being
deposited in the United States mail (certified mail with postage prepaid) to:

Brigham Exploration Company

6300 Bridge Point Parkway

Building 2, Suite 500

Austin, Texas 78730

Attention: Vice President Administration

(b) If to Employee, when delivered by hand or on the third business day after being
deposited in the United States mail (certified mail with postage prepaid) to the address for
Employee contained in the Company’s records.

Either party may at any time give to the other notice in writing of any change of address of the
party giving such notice and from and after the giving of such notice the address or addresses
therein specified will be deemed to be the address of such party for the purposes of giving notice
hereunder.

11. Counterparts. This Agreement may be executed by the parties hereto in any
number of counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same agreement. Each counterpart may consist of a number of copies hereof
each signed by less than all, but together signed by all, the parties hereto.

IN WITNESS WHEREOF, the Company and Employee have executed this Agreement as of the date first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	BRIGHAM EXPLORATION COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ben M. Brigham	 	 
	 

	 	 	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

 

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EXHIBIT A

RESTRICTED STOCK AWARDS

	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 	 	 	 	 
	 	 	Shares of Restricted	 	 	 	Duration of	 	Scheduled
	Award	 	Stock	 	Issue Date	 	Restricted Period	 	Termination Date
	 	 	 	 	 	 	 	 	 
	1.
	 	                    	 	                    	 	Commencing on __________ and ending at 12:01 AM on __________	 	12:01 AM on                     
	2.
	 	                    	 	                    	 	Commencing on __________ and ending at 12:01 AM on __________	 	12:01 AM on                     
	3.
	 	                    	 	                    	 	Commencing on __________ and ending at 12:01 AM on __________	 	12:01 AM on                     
	4.
	 	                    	 	                    	 	Commencing on __________ and ending at 12:01 AM on __________	 	12:01 AM on                     
	5.
	 	                    	 	                    	 	Commencing on __________ and ending at 12:01 AM on __________	 	12:01 AM on                     

 

6Filed by Bowne Pure Compliance

Exhibit 10.46

OPTION AGREEMENT

1997 Incentive Plan of Brigham Exploration Company

(Non-Qualified Stock Option)

This Option Agreement (“Agreement”), made and entered into as of                     , 20
 _____, is by
and between Brigham Exploration Company, a Delaware corporation (the “Company”), and
                                         (the “Optionee”).

WITNESSETH:

WHEREAS, the 1997 Incentive Plan of Brigham Exploration Company (“Plan”) was adopted by the
Company, effective as of February 26, 1997 (“Plan Date”), for certain employees of the Company and
its Subsidiaries;

WHEREAS, the Optionee is eligible to participate in the Plan and the Committee has approved
the grant to Optionee of an option to purchase shares of Common Stock, par value $.01 per share, of
the Company (“Shares”) pursuant to the Plan and upon the terms set forth herein;

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
hereinafter set forth, the Company and Optionee hereby agree as follows:

1. Certain Definitions. Terms used in this Agreement and not otherwise defined shall
have the respective meanings assigned to such terms in the Plan; and the following terms shall have
the following meanings:

“Companies” means the Company and any of its Subsidiaries.

“Expiration Date” means 6:00 P.M., Austin, Texas time, on                     ,
20 _____.

2. Grant of Option. Subject to the terms, conditions and provisions of the Plan and
those hereinafter set forth, the Company hereby irrevocably grants to the Optionee a Nonqualified
Stock Option (the “Option”) to purchase                      Shares, subject to adjustment in accordance with
the provisions of Section 7 of this Agreement. This Option is a nonqualified stock option and
shall not be treated as an incentive stock option under Section 422 of the Code.

3. Option Price. The price to be paid by Optionee to the Company for each Share
purchased pursuant to the exercise of this Option (“Option Price”) shall be $                     per share,
such Option Price being not less than 100% of the Fair Market Value of a share of Common Stock as
of the date of grant; provided, however, that the Option Price shall be subject to adjustment in
accordance with the provisions of Section 7 of this Agreement.

 

 

 

4. Vesting of Right to Exercise Option.

(a) Except as otherwise provided in this Agreement, the right to exercise this Option shall
vest as to 20% of the total Shares which may be purchased hereunder (rounded to the nearest whole
share) on                     , 20 _____, shall vest with respect to an additional 20% of the total Shares
which may be purchased hereunder (rounded to the nearest whole share) on
                    , 20
 _____, shall vest with respect to an additional 20% of the total Shares which
may be purchased hereunder (rounded to the nearest whole share) on                     , 20
 _____, shall
vest with respect to an additional 20% of the total Shares which may be purchased hereunder
(rounded to the nearest whole share) on                     , 20
 _____, and shall be fully vested on
                    , 20
 _____. From and after each date of vesting, Optionee may exercise this Option,
subject to the terms and conditions set forth herein, to purchase all or any portion of the Shares
for which Optionee’s rights have vested.

(b) To the extent Optionee does not purchase all or any part of the Shares at the times this
Option becomes exercisable, the Optionee has the right cumulatively thereafter to purchase any
Shares not so purchased and such right shall continue until this Option terminates or expires.

(c) If Optionee’s employment by the Companies is terminated on account of fraud or dishonesty
or other acts which the Board has determined are materially detrimental to the interests of the
Company, the Option shall automatically terminate as of the date of such termination and this
Option, including any portion which has vested, shall be forfeited.

(d) If Optionee’s employment by the Companies terminates voluntarily by Optionee or by action
of the Companies for reasons other than as specified in subsection (c), this Option may be
exercised, but only (i) within 90 days after such termination (but not after the date of expiration
of this Option), and (ii) to purchase the number of Shares, if any, that could be purchased upon
exercise of this Option at the date of termination of Optionee’s employment.

(e) In the event of Optionee’s death or disability prior to termination of employment (or
within the additional 90-day period provided by Section 4(d) hereof), this Option shall remain
outstanding and may be exercised by the person who acquires this Option by will or the laws of
descent and distribution, or by Optionee, as the case may be, but only (i) within the one-year
period following the date of death or disability (but not after the date of expiration of this
Option), and (ii) to purchase the number of Shares that could be purchased upon exercise of this
Option at the time of such death or disability.

(f) For purposes of subsection (d) and (e), if this Option shall not have fully vested as of
the date of termination of Optionee’s employment by the Company (but not in the case of a voluntary
termination by Optionee) or as of the date of the Optionee’s death or disability, then a ratable
portion of the number of Shares which would have become purchasable upon the next vesting date
shall be deemed to have vested as of the date of such termination (or death or disability),
determined by multiplying the number of Shares that vest on the next vesting date by a fraction
with a numerator equal to the number of full months which have then elapsed since the last vesting
date (or grant date in the event that no shares had previously vested) and a denominator equal to
the total number of months between the last vesting date (or grant date in the event that no shares
had previously vested) and the next scheduled vesting date, and rounding to the closest whole
number.

5. Restrictions on Exercise. The right to exercise the Option shall be subject to the
following restrictions:

(a) Vesting. Optionee shall have no right to exercise this Option to purchase any
Shares for which Optionee’s rights have not yet vested in accordance with Section 4.

 

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(b) No Fractional Shares. The Option may be exercised only with respect to full
Shares.

(c) Compliance with Law. The Option may not be exercised in whole or in part, and no
Shares shall be issued nor certificates representing such Shares (if any) delivered pursuant to any
exercise of the Option, if any requisite approval or consent of any governmental authority of any
kind having jurisdiction over the exercise of options or the issuance and sale of Shares shall not
have been obtained or if such exercise or issuance would violate any applicable law; provided,
however, that the period during which the Option may be exercised shall not be extended more than
30 days after the exercise of the Option first would no longer violate applicable law.

(d) Exercise by Optionee. The Option shall only be exercisable by the Optionee and by
any transferee who has received such Option pursuant to Section 9.

6. Exercise of Option.

(a) Subject to the other terms and provisions of this Agreement, the Option shall be
exercisable by written notice timely given to the Company by the Optionee (the “Exercise Notice”),
which notice (i) shall state the number of Shares that the Optionee then desires to purchase, and
(ii) shall be accompanied by payment in full of the Option Price for each of such Shares. Unless
the Company and Optionee shall have made mutually acceptable alternative arrangements, payment of
the Option Price shall be made in cash or by surrender of Shares owned by the Optionee (the
“Payment Shares”), the aggregate Fair Market Value of which shall be credited against the Option
Price.

(b) The Company’s obligation to issue and transfer Shares upon the exercise of this Option
shall be conditioned on Optionee’s payment to the Company of an amount in cash equal to applicable
withholding taxes, if any, due in connection with the exercise of this Option; provided, however,
that with the consent of the Company, Optionee may satisfy any tax withholding obligation in
connection with the exercise of this Option by (i) surrendering Shares owned by the Optionee to the
Company or (ii) having the Company withhold from Shares otherwise deliverable to Optionee upon
exercise of this Option. Any Shares surrendered or withheld to satisfy Optionee’s tax withholding
obligation shall be valued at Fair Market Value as of the date of surrender or withholding of such
Shares.

7. Recapitalization or Reorganization; Adjustments.

(a) The existence of this Option shall not affect in any way the right or power of the Company
to make or authorize any adjustment, recapitalization, reorganization or other change in the
Company’s capital structure or its business, any merger or consolidation of the Company, any
issuance of additional securities by the Company with priority over Shares or otherwise affecting
Shares or the rights thereof, the dissolution or liquidation of the Company or any sale, lease,
exchange or other disposition of all or any part of its assets or business or any other corporate
act or proceeding.

 

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(b) If as a result of any merger or acquisition transaction involving the Company or any
transaction involving the issuance or redemption of equity interests in the Company, more than
fifty percent (50%) of such equity interests is owned by parties other than those listed on
Exhibit A attached hereto (such event is referred to herein as a “Fundamental Change”), then
immediately before the consummation of the Fundamental Change, any portion of the Option which has
not then vested shall become vested, so that the Optionee shall have an opportunity to exercise the
Option prior to the consummation of the Fundamental Change. The Company shall provide to Optionee
at least 30 days’ notice of any pending Fundamental Change during which period Optionee may elect
to exercise the Option effective immediately before consummation of such Fundamental Change.

(c) If the Company subdivides its outstanding Shares into a greater number of Shares, the
Option Price in effect immediately prior to such subdivision shall be proportionately reduced, and
the number of Shares then subject to the Option shall be proportionately increased. Conversely, if
the outstanding number of Shares of the Company are combined into a smaller number of Shares, the
Option Price in effect immediately prior to such combination shall be proportionately increased,
and the number of Shares then subject to the Option shall be proportionately reduced.

8. Termination of Option. Unless terminated earlier pursuant to Section 4 hereof,
this Option shall terminate upon the first to occur of the (i) the Expiration Date, or (ii) the
date on which Optionee purchases, or in writing surrenders his right to purchase, all Shares or
other securities then subject to the Option.

9. Restriction on Transfer of Option. The Option may not be sold, assigned,
hypothecated or transferred, except by will or pursuant to the laws of descent and distribution or
in accordance with the provisions of the Plan. Any attempted transfer of the Option in violation
of this provision shall be void and of no effect whatsoever.

10. Rights as a Shareholder. Optionee shall have no rights as a shareholder of the
Company with respect to any Shares covered by the Option until the exercise of the Option.

11. Additional Documents. The Company and the Optionee will, upon request of the
other party, promptly execute and deliver all additional documents, and take all such further
action, reasonably deemed by such party to be necessary, appropriate or desirable to complete and
evidence the sale, assignment and transfer of the Shares pursuant to this Agreement.

12. Representations, Warranties and Covenants of Optionee.

(a) The Optionee acknowledges that the Option has not been registered under the Securities Act
of 1933 or applicable state securities laws on the grounds that the issuance of the Option is
exempt from registration under one or more provisions of each of such acts. The Optionee further
understands that in determining the availability and applicability of such exemptions and in
executing and delivering this Agreement and issuing and delivering any Shares upon exercise of the
Option, the Company has relied and will rely upon the representations, warranties and covenants
made by the Optionee herein and in any other documents which he may hereafter deliver to the
Company. Accordingly, the Optionee represents and warrants to and covenants and agrees with the
Company that the Optionee is acquiring and will hold the Option for his own account for investment
and not with a view to any sale or distribution of all or any part thereof.

 

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(b) The Optionee agrees (i) that the certificates representing the Shares or other securities
purchased under this Option may bear such legend or legends as the Company deems appropriate in
order to assure compliance with applicable securities laws, (ii) that the Company may refuse to
register the transfer of the Shares or other securities purchased under this Option on the transfer
records of the Company unless the Company is provided with an opinion of counsel in form and
substance satisfactory to the Company confirming that such proposed transfer would not constitute a
violation of any applicable securities laws, and (iii) that the Company may give related
instructions to its transfer agent, if any, to stop registration of the transfer of the Shares or
other securities purchased under this Option.

(c) Optionee acknowledges that the value of the Option over its life will be speculative and
uncertain, that there is no market for the Option and it is unlikely that any market will develop,
and consequently, the Optionee may ultimately realize no value from the Option.

13. Notices. All notices required or permitted to be given hereunder shall be in
writing and shall be deemed to have been given on the earlier of the date of receipt by the party
to whom the notice is given or five (5) days after being mailed by certified or registered United
States mail, postage prepaid, addressed to the appropriate party at the address shown beside such
party’s signature below or at such other address as such party shall have theretofore designated by
written notice given to the other party.

14. Entirety and Modification. This Agreement contains the entire agreement between
the parties hereto with respect to the subject matter hereof and supersedes any and all prior
agreements, whether written or oral, between such parties relating to such subject matter. No
modification, alteration, amendment or supplement to this Agreement shall be valid or effective
unless the same is in writing and signed by the party against whom it is sought to be enforced.

15. Severability. If any provision of this Agreement is held to be unenforceable,
this Agreement shall be considered divisible, and such provision shall be deemed inoperative to the
extent it is unenforceable, and in all other respects this Agreement shall remain in full force and
effect; provided, however, that if any such provision may be made enforceable by limitation
thereof, then such provision shall be deemed to be so limited and shall be enforceable to the
maximum extent permitted by applicable law.

16. Gender. Words used in this Agreement which refer to Optionee and denote the male
gender shall also be deemed to include the female gender or the neuter gender when appropriate.

17. Headings. The headings of the various sections and subsections of this Agreement
have been inserted for convenient reference only and shall not be construed to enlarge, diminish or
otherwise change the express provisions hereof.

18. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware (regardless of the laws that might otherwise govern under
applicable Delaware principles of conflicts of law).

19. Counterparts. This Agreement may be signed in counterparts, each of which shall
be deemed an original and all of which shall constitute one and the same agreement.

 

5

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 	 	 
	 	 	 	 	BRIGHAM EXPLORATION COMPANY
	 
	 	 	 	 	 	 
	6300 Bridge Point Pkwy.

Building Two, Suite 500
	 	 	 	 	 	 
	Austin, Texas 78730

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Ben M. Brigham, President / CEO
	 
	 	 	 	 	 	 
	 	 	 	 	OPTIONEE
	 
	 	 	 	 	 	 
	[INSERT OPTIONEE’S

ADDRESS]
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	 	 	Name:

 

6

 

EXHIBIT A

BRIGHAM EXPLORATION COMPANY, A Delaware corporation

BRIGHAM OIL & GAS, L.P., A Delaware limited partnership

BRIGHAM, INC. (f/k/a Brigham Exploration Company), a Nevada corporation

BEN M. BRIGHAM

ANNE L. BRIGHAM

HAROLD D. CARTER

CREDIT SUISSE FIRST BOSTON (USA), INC.

 

7

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