Document:

SUBORDINATED CREDIT AGREEMENT

                          Dated as of October 31, 2000

                                      Among

                             BRIGHAM OIL & GAS, L.P.
                                  as Borrower,

                               SHELL CAPITAL INC.,
                                    as Agent,

                                       and

                          THE LENDERS SIGNATORY HERETO

<PAGE>

Article 1 Definitions and Accounting Matters..............................1
--------------------------------------------
    Section 1.01   Terms Defined Above....................................1
    ------------   --------------------
    Section 1.02   Certain Defined Terms..................................2
    ------------   ----------------------
    Section 1.03   Accounting Terms and Determinations...................16
    ------------   ------------------------------------
Article 2 Commitments....................................................16
---------------------
    Section 2.01   Loans.................................................16
    ------------   ------
    Section 2.02   Borrowings, Continuations and Conversions.............16
    ------------   ------------------------------------------
    Section 2.03   Changes of Commitments................................17
    ------------   -----------------------
    Section 2.04   Fees..................................................18
    ------------   -----
    Section 2.05   Several Obligations...................................18
    ------------   --------------------
    Section 2.06   Notes.................................................18
    ------------   ------
    Section 2.07   Prepayments...........................................18
    ------------   ------------
    Section 2.08   Lending Offices.......................................19
    ------------   ----------------
Article 3 Payments of Principal and Interest.............................19
--------------------------------------------
    Section 3.01    Repayment of Loans...................................19
    ------------    -------------------
    Section 3.02    Interest.............................................19
    ------------    ---------
Article 4 Payments; Pro Rata Treatment; Computations; Etc................20
----------------------------------------------------------
    Section 4.01    Payments.............................................20
    ------------    ---------
    Section 4.02    Pro Rata Treatment...................................20
    ------------    -------------------
    Section 4.03    Computations.........................................20
    ------------    -------------
    Section 4.04    Non-receipt of Funds by the Agent....................20
    ------------    ----------------------------------
    Section 4.05    Set-off, Sharing of Payments, Etc....................21
    ------------    ----------------------------------
    Section 4.06    Taxes................................................22
    ------------    ------
Article 5 [Intentionally Omitted]........................................25
---------------------------------
Article 6 Conditions Precedent...........................................25
------------------------------
    Section 6.01    Initial Funding......................................25
    ------------    ----------------
    Section 6.02    Initial, Subsequent Loans............................27
    ------------    --------------------------
    Section 6.03    Conditions Precedent for the Benefit of Lenders......28
    ------------    ------------------------------------------------
    Section 6.04    No Waiver............................................28
    ------------    ----------

                                        i
<PAGE>

Article 7 Representations and Warranties.................................28
----------------------------------------
    Section 7.01    Corporate Existence..................................28
    ------------    --------------------
    Section 7.02    Financial Condition..................................28
    ------------    --------------------
    Section 7.03    Litigation...........................................29
    ------------    -----------
    Section 7.04    No Breach............................................29
    ------------    ----------
    Section 7.05    Authority............................................29
    ------------    ----------
    Section 7.06    Approvals............................................29
    ------------    ----------
    Section 7.07    Use of Loans.........................................30
    ------------    -------------
    Section 7.08    ERISA................................................30
    ------------    ------
    Section 7.09    Taxes................................................31
    ------------    ------
    Section 7.10    Titles, etc..........................................31
    ------------    ------------
    Section 7.11    No Material Misstatements............................32
    ------------    --------------------------
    Section 7.12    Investment Company Act...............................32
    ------------    -----------------------
    Section 7.13    Public Utility Holding Company Act...................32
    ------------    -----------------------------------
    Section 7.14    Subsidiaries.........................................33
    ------------    -------------
    Section 7.15    Location of Business and Offices.....................33
    ------------    ---------------------------------
    Section 7.16    Defaults.............................................33
    ------------    ---------
    Section 7.17    Environmental Matters................................33
    ------------    ----------------------
    Section 7.18    Compliance with the Law..............................34
     ------------   ------------------------
     Section 7.19   Insurance............................................35
     ------------   ----------
     Section 7.20   Hedging Agreements...................................35
     ------------   -------------------
     Section 7.21   Restriction on Liens.................................35
     ------------   ---------------------
     Section 7.22   Material Agreements..................................35
     ------------   --------------------
     Section 7.23   Gas Imbalances.......................................36
     ------------   ---------------
     Section 7.24   Partnership Agreement................................36
     ------------   ----------------------
Article 8 Affirmative Covenants..........................................36
-------------------------------
     Section 8.01   Financial Statements and Other Reports...............36
     ------------   ---------------------------------------
     Section 8.02   Litigation...........................................39
     ------------   -----------
     Section 8.03   Maintenance, Etc.....................................39
     ------------   -----------------
     Section 8.04   Environmental Matters................................41
     ------------   ----------------------
     Section 8.05   Further Assurances...................................41
     ------------   -------------------

                                       ii
<PAGE>

  Section 8.06   Performance of Obligations..............................42
     ------------   ---------------------------
     Section 8.07   Engineering Reports..................................42
     ------------   --------------------
     Section 8.08   Reserved.............................................43
     ------------   ---------
     Section 8.09   Additional Collateral................................43
     ------------   ----------------------
     Section 8.10   ERISA Information and Compliance.....................44
     ------------   ---------------------------------
     Section 8.11   Subsidiary Security..................................45
     ------------   --------------------
     Section 8.12   Payment of Trade Payables............................45
     ------------   --------------------------
Article 9 Negative Covenants.............................................45
----------------------------
     Section 9.01   Debt.................................................45
     ------------   -----
     Section 9.02   Liens................................................46
     ------------   ------
     Section 9.03   Investments, Loans and Advances......................46
     ------------   --------------------------------
     Section 9.04   Dividends, Distributions and Redemptions.............48
     ------------   -----------------------------------------
     Section 9.05   Sales and Leasebacks.................................48
     ------------   ---------------------
     Section 9.06   Nature of Business...................................48
     ------------   -------------------
     Section 9.07   Limitation on Leases.................................48
     ------------   ---------------------
     Section 9.08   Mergers, Etc.........................................48
     ------------   --------------
     Section 9.09   Proceeds of Notes....................................48
     ------------   ------------------
     Section 9.10   ERISA Compliance.....................................48
     ------------   -----------------
     Section 9.11   Sale or Discount of Receivables......................52
     ------------   --------------------------------
     Section 9.12   [Intentionally Omitted]..............................50
     ------------   -----------------------
     Section 9.13   Sale of Oil and Gas Properties.......................50
     ------------   -------------------------------
     Section 9.14   Environmental Matters................................50
     ------------   ----------------------
     Section 9.15   Transactions with Affiliates.........................50
     ------------   -----------------------------
     Section 9.16   Subsidiaries.........................................50
     ------------   -------------
     Section 9.17   Negative Pledge Agreements...........................50
     ------------   ---------------------------
     Section 9.18   Gas Imbalances, Take-or-Pay or Other Prepayments.....51
     ------------   -------------------------------------------------
     Section 9.19   Borrower as Operator.................................51
     ------------   ---------------------
     Section 9.20   Restrictions While Outstanding Indebtedness
     ------------   Exceeds the Borrowing Base...........................51
                    -------------------------
     Section 9.21   Debt to RAPRV........................................52
     ------------   --------------

                                       iii
<PAGE>

Article 10 Events of Default; Remedies...................................52
--------------------------------------
     Section 10.01  Events of Default....................................52
     -------------  ------------------
     Section 10.02  Remedies.............................................54
     -------------  ---------
     Section 10.03  Production and Proceeds..............................55
     -------------  ------------------------
Article 11 The Agent.....................................................56
--------------------
     Section 11.01  Appointment, Powers and Immunities...................56
     -------------  -----------------------------------
     Section 11.02  Reliance by Agent....................................56
     -------------  ------------------
     Section 11.03  Defaults.............................................56
     -------------  ---------
     Section 11.04  Rights as a Lender...................................57
     -------------  -------------------
     Section 11.05  INDEMNIFICATION......................................57
     -------------  ----------------
     Section 11.06  Non-Reliance on Agent and other Lenders..............57
     -------------  ----------------------------------------
     Section 11.07  Action by Agent......................................58
     -------------  ----------------
     Section 11.08  Resignation or Removal of Agent......................58
     -------------  --------------------------------

Article 12 Miscellaneous.................................................59
------------------------
     Section 12.01  Waiver...............................................59
     -------------  -------
     Section 12.02  Notices..............................................59
     -------------  --------
     Section 12.03  Payment of Expenses, Indemnities, etc................59
     -------------  --------------------------------------
     Section 12.04  Amendments, Etc......................................62
     -------------  ----------------
     Section 12.05  Successors and Assigns...............................62
     -------------  -----------------------
     Section 12.06  Assignments and Participations.......................62
     -------------  ------------------------------
     Section 12.07  Invalidity...........................................64
     -------------  -----------
     Section 12.08  Counterparts.........................................64
     -------------  -------------
     Section 12.09  References...........................................64
     -------------  -----------
     Section 12.10  Survival.............................................64
     -------------  ---------
     Section 12.11  Captions.............................................64
     -------------  ---------
     Section 12.12  NO ORAL AGREEMENTS...................................64
     -------------  -------------------
     Section 12.13  GOVERNING LAW; SUBMISSION TO JURISDICTION............65
     -------------  ------------------------------------------
     Section 12.14  Interest.............................................66
     -------------  ---------
     Section 12.15  Confidentiality......................................67
     -------------  ----------------
     Section 12.16  Effectiveness........................................67
     -------------  --------------
     Section 12.17  EXCULPATION PROVISIONS...............................67
     -------------  -----------------------
     Section 12.18  RELEASE..............................................68
     -------------  --------

                                       iv
<PAGE>

          THIS CREDIT AGREEMENT dated as of October 31, 2000 is among: BRIGHAM
OIL & GAS, L.P., a limited partnership formed under the laws of the State of
Delaware (the "BORROWER") and Shell Capital Inc., individually ("SCI"), and any
other lender which becomes a signatory hereto as provided in Section 12.06
(individually, together with its successors and assigns, a "LENDER" and
collectively, "the LENDERS"), and SCI, in its capacity as agent for the Lenders
(in such capacity, together with its successors in such capacity, the "Agent").

                                 R E C I T A L S

          A. Reference is made to that certain Amended and Restated Credit
Agreement (the "SENIOR CREDIT AGREEMENT") dated as of February 17, 2000, as
amended by that certain First Amendment to Amended and Restated Credit Agreement
of even date herewith and as further amended or supplemented from time to time
in accordance with the Subordination Agreement described below, among the
Borrower, BANK OF MONTREAL, a Canadian bank, in its individual capacity (in its
individual capacity, "BMO"), and BMO, in its capacity as agent (in such
capacity, together with its successors in such capacity, the "SENIOR AGENT"),
Societe Generale, Southwest Agency ("SOC-GEN") and SCI. BMO, Soc-Gen and SCI and
their respective successors and assigns in the capacity as lenders under the
Senior Credit Agreement are herein collectively called "SENIOR LENDERS".

          B. The Lenders have agreed to provide senior subordinated debt in the
amount of up to $20,000,000 (plus any amount of interest paid in kind pursuant
to Section 3.02(b) hereof) consisting of advances to the Borrower for purposes
set out below, and the Borrower, the Agent and the Lenders now desire to set
forth their agreements with respect to such credit facility.

          C. Pursuant to that certain Intercreditor and Subordination Agreement
dated as of October 31, 2000, among BMO, Soc-Gen, SCI, Senior Agent, Lenders and
Agent (as from time to time amended or supplemented, the "SUBORDINATION
AGREEMENT") the Indebtedness (as hereinafter defined) is expressly subordinated
to the Senior Indebtedness (as hereinafter defined).

          D. In consideration of the mutual covenants and agreements herein
contained and of the loans, extensions of credit and commitments hereinafter
referred to, the parties hereto agree as follows:

                                   ARTICLE 1

                       Definitions and Accounting Matters

          Section 1.01  TERMS DEFINED ABOVE. As used in this Agreement, the
terms "AGENT," "BMO," "BORROWER," "Lender," "LENDERS," "SENIOR CREDIT
AGREEMENT," "PRIOR NOTES", "SCI", "SENIOR AGENT", "SENIOR LENDERS", "SOC-GEN"
and Subordination Agreement shall have the meanings indicated above.

                                       1
<PAGE>

          Section 1.02  CERTAIN DEFINED TERMS. As used herein, the following
terms shall have the following meanings (all terms defined in this Article I or
in other provisions of this Agreement in the singular to have the same meanings
when used in the plural and vice versa):

          "AFFILIATE" of any Person shall mean (i) any Person directly or
indirectly controlled by, controlling or under common control with such first
Person, (ii) any director or officer of such first Person or of any Person
referred to in clause (i) above and (iii) if any Person in clause (i) above is
an individual, any member of the immediate family (including parents, spouse and
children) of such individual and any trust whose principal beneficiary is such
individual or one or more members of such immediate family and any Person who is
controlled by any such member or trust. For purposes of this definition, any
Person which owns directly or indirectly 20% or more of the securities having
ordinary voting power for the election of directors or other governing body of a
corporation or 20% or more of the partnership or other ownership interests of
any other Person (other than as a limited partner of such other Person) will be
deemed to "CONTROL" (including, with its correlative meanings, "CONTROLLED BY"
and "UNDER COMMON CONTROL WITH") such corporation or other Person.

          "AGENT'S FEE LETTER" shall mean that certain letter agreement from the
Agent to the Borrower dated of even date with this Agreement concerning certain
fees in connection with this Agreement and any agreements or instruments
executed in connection therewith, as the same may be amended or replaced from
time to time.

          "AGREEMENT" shall mean this Subordinated Credit Agreement, as the same
may from time to time be amended or supplemented.

          "AGGREGATE COMMITMENTS" at any time shall equal the amount calculated
in accordance with Section 2.03 hereof.

          "AGGREGATE MAXIMUM CREDIT AMOUNTS" shall mean the amount of
$20,000,000, plus any amount of interest paid in kind pursuant to Section
3.02(b) hereof, as the same may be reduced pursuant to Section 2.03(b) and
Section 2.07(c).

          "APPLICABLE LENDING OFFICE" shall mean, for each Lender, the lending
office of such Lender (or an Affiliate of such Lender) designated on the
signature pages hereof or such other offices of such Lender (or of an Affiliate
of such Lender) as such Lender may from time to time specify to the Agent and
the Borrower as the office by which its Loans are to be made and maintained.

          "ASSIGNMENT" shall have the meaning assigned such term in Section
12.06(b).

          "BORROWING BASE" has the meaning assigned to it now and from time to
time hereafter in the Senior Credit Agreement.

          "BRIGHAM EXPLORATION" shall mean Brigham Exploration Company, a
Delaware corporation and owner of 100% of the capital stock of the General
Partner.

          "BUSINESS DAY" shall mean any day other than a day on which commercial
banks are authorized or required to close in Houston, Texas.

                                       2
<PAGE>

          "CAPEX PLAN" shall mean each Capital Expenditures Plan detailing the
projected capital expenditures of the Borrower for the twelve month period
covered thereby the first of which is to be submitted on the Closing Date with
similar plans for each succeeding twelve month period to be submitted in
accordance with Section 8.01(l).

          "CLOSING DATE" shall mean October 31, 2000, or any date thereafter
acceptable to Borrower and Agent.

          "CODE" shall mean the Internal Revenue Code of 1986, as amended from
time to time and any successor statute.

          "COMMITMENT" shall mean, for any Lender, its obligation to make Loans
up to such Lender's Maximum Credit Amount .

          "CONSOLIDATED NET INCOME" shall mean with respect to Brigham
Exploration and its Consolidated Subsidiaries, for any period, the aggregate of
the net income (or loss) of Brigham Exploration and its Consolidated
Subsidiaries after allowances for taxes for such period, determined on a
consolidated basis in accordance with GAAP; PROVIDED that there shall be
excluded from the calculation of such net income (to the extent otherwise
included therein) the following: (i) the net income of any Person in which
Brigham Exploration or any Consolidated Subsidiary has an interest (which
interest does not cause the net income of such other Person to be consolidated
with the net income of Brigham Exploration and its Consolidated Subsidiaries in
accordance with GAAP), except to the extent of the amount of dividends or
distributions actually paid in such period by such other Person to Brigham
Exploration or to a Consolidated Subsidiary, as the case may be; (ii) the net
income (but not loss) of any Consolidated Subsidiary to the extent that the
declaration or payment of dividends or similar distributions or transfers or
loans by that Consolidated Subsidiary is not at the time permitted by operation
of the terms of its charter or any agreement, instrument or Governmental
Requirement applicable to such Consolidated Subsidiary, or is otherwise
restricted or prohibited in each case determined in accordance with GAAP; (iii)
the net income (or loss) of any Person acquired in a pooling-of-interests
transaction for any period prior to the date of such transaction; (iv) any
extraordinary gains or losses, including gains or losses attributable to
Property sales not in the ordinary course of business; and (v) the cumulative
effect of a change in accounting principles and any gains or losses attributable
to writeups or writedowns of assets.

          "CONSOLIDATED SUBSIDIARIES" shall mean each Subsidiary of Brigham
Exploration (whether now existing or hereafter created or acquired) the
financial statements of which shall be (or should have been) consolidated with
the financial statements of Brigham Exploration in accordance with GAAP,
including, without limitation, the Borrower.

          "CONVERSION AGREEMENT" shall mean that certain Equity Conversion
Agreement dated as of February 17, 2000 by and among Borrower, Brigham
Exploration and SCI.

          "COVENANT RELEASE DATE" means the first Borrowing Base Redetermination
Date on which the outstanding Senior Indebtedness (excluding any obligation of
any kind under any Hedging Agreement) is less than or equal to the Borrowing
Base set by the Senior Lenders pursuant to the Senior Credit Agreement.

                                     3
<PAGE>

          "CREDIT ADVANCES TERMINATION DATE" shall mean, unless the Commitments
are sooner terminated pursuant to Sections 2.03(b) or 10.02 hereof, the Covenant
Release Date.

          "DEBT" shall mean, for any Person the sum of the following (without
duplication): (i) all obligations of such Person for borrowed money or evidenced
by bonds, debentures, notes or other similar instruments (including principal,
interest, fees and charges); (ii) all obligations of such Person (whether
contingent or otherwise) in respect of bankers' acceptances, letters of credit,
surety or other bonds and similar instruments; (iii) all obligations of such
Person to pay the deferred purchase price of Property or services (other than
for borrowed money) excluding Trade Payables; (iv) all obligations under leases
which shall have been, or should have been, in accordance with GAAP, recorded as
capital leases in respect of which such Person is liable (whether contingent or
otherwise); (v) all obligations under leases (other than capital leases and oil
and gas leases) which require such Person or its Affiliate to make payments
exceeding $100,000 over the term of such lease, including payments at
termination, which are substantially equal to at least eighty percent (80%) of
the purchase price of the Property subject to such lease plus interest at an
imputed market rate of interest; (vi) all Debt (as described in the other
clauses of this definition) of others secured by a Lien on any asset of such
Person, whether or not such Debt is assumed by such Person; (vii) all Debt (as
described in the other clauses of this definition) of others guaranteed by such
Person or in which such Person otherwise assures a creditor against loss of the
Debt of others; (viii) all obligations or undertakings of such Person to
maintain or cause to be maintained the financial position or covenants of others
including without limitation agreements expressed as an agreement to purchase
the Debt or Property of others or otherwise; (ix) obligations to deliver
Hydrocarbons in consideration of advance payments; (x) obligations to pay for
goods or services whether or not such goods or services are actually received or
utilized by such Person; (xi) any capital stock of such Person in which such
Person has a mandatory obligation to redeem such stock; (xii) any Debt of a
Special Entity for which such Person is liable either by agreement or because of
a Governmental Requirement; (xiii) the undischarged balance of any production
payment created by such Person or for the creation of which such Person directly
or indirectly received payment; and (xiv) all obligations of such Person under
Hedging Agreements.

          "DEFAULT" shall mean an Event of Default or an event which with notice
or lapse of time or both would become an Event of Default.

          "DOLLARS" and "$" shall mean lawful money of the United States of
America.

          "EBITDA" shall mean, for any period, the sum of Consolidated Net
Income for such period PLUS the following expenses or charges to the extent
deducted from Consolidated Net Income in such period: interest, taxes,
depreciation, depletion and amortization, and other noncash charges, MINUS (i)
all non cash income added to Consolidated Net Income in such period and (ii)
capitalized general and administrative charges for such period.

          "ECT" shall mean Enron Capital & Trade Resources Corp., a Delaware
corporation.

          "ECT MERCHANT" shall mean ECT Merchant Investments Corp., a Delaware
corporation.

                                       4
<PAGE>

          "EFFECTIVE DATE" shall have the meaning assigned such term in Section
12.16.

          "ENRON INDEBTEDNESS" shall mean any and all Debt incurred under the
Indenture and/or secured by the Enron Mortgages.

          "ENRON MORTGAGES" shall mean the Mortgage, Deed of Trust, Assignment
of Production, Security Agreement and Financing Statement agreements executed by
Borrower pursuant to the terms and provisions of the Indenture.

          "ENRON NOTES" means the promissory notes issued pursuant to the
Indenture or the Securities Purchase Agreement.

          "ENRON SHARES" shall mean both (a) the 263,158 shares of common stock
in Brigham Exploration that Brigham Exploration issued to ECT pursuant to the
Securities Purchase Agreement, as evidenced by certificate number 0089, as
replaced by certificate number 0131 issued in favor of ECT Merchant evidencing
the change in Ownership from ECT to ECT Merchant and (b) the 789,474 shares in
Brigham Exploration that Brigham Exploration issued to JEDI-II, as evidenced by
certificate number 0131.

          "ENRON WARRANTS" shall mean the warrants issued by Brigham Exploration
to ECT (as predecessor to ECT Merchant) and JEDI-II pursuant to the Securities
Purchase Agreement for the purchase of an aggregate of 1,000,000 shares of
common stock of Brigham Exploration, and any warrants issued upon the transfer
thereof or in substitution therefore, pursuant to any warrant certificates
issued in accordance with the Securities Purchase Agreement.

          "ENVIRONMENTAL LAWS" shall mean any and all Governmental Requirements
pertaining to the environment in effect in any and all jurisdictions in which
the Borrower or any Subsidiary is conducting or at any time has conducted
business, or where any Property of the Borrower or any Subsidiary is located,
including without limitation, the Oil Pollution Act of 1990 ("OPA"), the Clean
Air Act, as amended, the Comprehensive Environmental, Response, Compensation,
and Liability Act of 1980 ("CERCLA"), as amended, the Federal Water Pollution
Control Act, as amended, the Occupational Safety and Health Act of 1970, as
amended, the Resource Conservation and Recovery Act of 1976 ("RCRA"), as
amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control
Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as
amended, the Hazardous Materials Transportation Act, as amended, and other
environmental conservation or protection laws. As used in the provisions hereof
relating to Environmental Laws, the term "oil" shall have the meaning specified
in OPA, the terms "hazardous substance" and "release" (or "threatened release")
have the meanings specified in CERCLA, and the terms "solid waste" and
"disposal" (or "disposed") have the meanings specified in RCRA; provided,
however, that (i) in the event either OPA, CERCLA or RCRA is amended so as to
broaden the meaning of any term defined thereby, such broader meaning shall
apply subsequent to the effective date of such amendment and (ii) to the extent
the laws of the state in which any Property of the Borrower or any Subsidiary is
located establish a meaning for "oil," "hazardous substance," "release," "solid
waste" or "disposal" which is broader than that specified in either OPA, CERCLA
or RCRA, such broader meaning shall apply.

                                       5
<PAGE>

          "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time and any successor statute.

          "ERISA AFFILIATE" shall mean each trade or business (whether or not
incorporated) which together with the Borrower or any Subsidiary of the Borrower
would be deemed to be a "single employer" within the meaning of section
4001(b)(1) of ERISA or subsections (b), (c), (m) or (o) of section 414 of the
Code.

          "ERISA EVENT" shall mean (i) a "Reportable Event" described in Section
4043 of ERISA and the regulations issued thereunder (other than such an event
with respect to which the requirement to give notice has been waived), (ii) the
withdrawal of the Borrower or any ERISA Affiliate from a Plan during a plan year
in which it was a "substantial employer" as defined in Section 4001(a)(2) of
ERISA, (iii) the filing of a notice of intent to terminate a Plan (other than a
defined contribution Plan) or the treatment of an amendment to such a Plan as a
termination under Section 4041 of ERISA, (iv) the institution of proceedings to
terminate a Plan by the PBGC or (v) any other event or condition which might
constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan.

          "EVENT OF DEFAULT" shall have the meaning assigned such term in
Section 10.01.

          "EXCEPTED LIENS" shall mean: (i) Liens for taxes, assessments or other
governmental charges or levies not yet due or which are being contested in good
faith by appropriate action and for which adequate reserves have been maintained
in accordance with GAAP; (ii) Liens in connection with workmen's compensation,
unemployment insurance or other social security, old age pension or public
liability obligations not yet due or which are being contested in good faith by
appropriate action and for which adequate reserves have been maintained in
accordance with GAAP; (iii) operators', vendors', carriers', warehousemen's,
repairmen's, mechanics', workmen's, materialmen's, construction or other like
Liens arising by operation of law in the ordinary course of business or incident
to the exploration, development, operation and maintenance of Oil and Gas
Properties or customary landlord's liens, each of which is in respect of
obligations that have not been outstanding more than 90 days or which are being
contested in good faith by appropriate proceedings and for which adequate
reserves have been maintained in accordance with GAAP; (iv) any Liens reserved
in leases or farmout agreements for rent or royalties and for compliance with
the terms of the farmout agreements or leases in the case of leasehold estates,
to the extent that any such Lien referred to in this clause does not materially
impair the use of the Property covered by such Lien for the purposes for which
such Property is held or materially impair the value of such Property subject
thereto; (v) encumbrances (other than to secure the payment of borrowed money or
the deferred purchase price of Property or services), easements, restrictions,
servitudes, permits, conditions, covenants, exceptions or reservations in any
rights of way or other Property for the purpose of roads, pipelines,
transmission lines, transportation lines, distribution lines for the removal of
gas, oil, coal or other minerals or timber, and other like purposes, or for the
joint or common use of real estate, rights of way, facilities and equipment, and
defects, irregularities, zoning restrictions and deficiencies in title of any
rights of way or other Property which in the aggregate do not materially impair
the use of such rights of way or other Property for the purposes of which such
rights of way and other Property are held or materially impair the value of such
Property subject thereto; (vi) deposits of cash or securities to secure the
performance of bids, trade contracts,

                                       6
<PAGE>

leases, statutory obligations and other obligations of a like nature incurred in
the ordinary course of business; (vii) Liens permitted by the Loan Documents;
and (viii) Liens securing the Senior Indebtedness; and (ix) liens securing any
Debt described in Section 9.01(f) hereof that is owing, at the time such Debt is
incurred, to either a Senior Lender, a Lender, an Affiliate of a Senior Lender
or an Affiliate of a Lender.

          "FEDERAL FUNDS RATE" shall mean, for any day, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the
weighted average of the rates on overnight federal funds transactions with a
member of the Federal Reserve System arranged by federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day, provided that (i) if the date for which such rate is
to be determined is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (ii) if such rate is not so
published for any day, the Federal Funds Rate for such day shall be the average
rate charged to the Agent on such day on such transactions as determined by the
Agent.

          "FINAL MATURITY DATE" means October 31, 2005.

          "FINANCIAL STATEMENTS" shall mean the financial statement or
statements described or referred to in Section 7.02.

          "FIXED RATE" means 10.75% per annum, but in no event to exceed the
Highest Lawful Rate.

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

          "GENERAL PARTNER" shall mean Brigham, Inc., a Nevada corporation,
general partner of the Borrower.

          "GOVERNMENTAL AUTHORITY" shall include the country, the state, county,
city and political subdivisions in which any Person or such Person's Property is
located or which exercises valid jurisdiction over any such Person or such
Person's Property, and any court, agency, department, commission, board, bureau
or instrumentality of any of them including monetary authorities which exercises
valid jurisdiction over any such Person or such Person's Property. Unless
otherwise specified, all references to Governmental Authority herein shall mean
a Governmental Authority having jurisdiction over, where applicable, the
Borrower, the Subsidiaries or any of their Property or the Agent, any Lender or
any Applicable Lending Office.

          "GOVERNMENTAL REQUIREMENT" shall mean any law, statute, code,
ordinance, order, determination, rule, regulation, judgment, decree, injunction,
franchise, permit, certificate, license, authorization or other directive or
requirement (in the case of banking regulatory authorities whether or not having
the force of law), including, without limitation, Environmental Laws, energy
regulations and occupational, safety and health standards or controls, of any
Governmental Authority.

                                      7
<PAGE>

          "GUARANTORS" shall mean Brigham Exploration, the General Partner,
Brigham Holdings I, LLC and Brigham Holdings II, LLC and any other Person who
becomes party to a Guaranty Agreement pursuant to the terms of Section 8.11.

          "GUARANTY AGREEMENTS" shall mean the agreements executed by the
Guarantors in form and substance satisfactory to the Agent guarantying,
unconditionally, payment of the Indebtedness, as the same may be amended,
modified or supplemented from time to time.

          "HEDGING AGREEMENTS" shall mean any commodity, interest rate or
currency swap, cap, floor, collar, forward agreement or other exchange or
protection agreements or any option with respect to any such transaction.

          "HIGHEST LAWFUL RATE" shall mean, with respect to each Lender, the
maximum nonusurious interest rate, if any, that at any time or from time to time
may be contracted for, taken, reserved, charged or received on the Notes or on
other Indebtedness under laws applicable to such Lender which are presently in
effect or, to the extent allowed by law, under such applicable laws which may
hereafter be in effect and which allow a higher maximum nonusurious interest
rate than applicable laws now allow.

          "HYDROCARBON INTERESTS" shall mean all rights, titles, interests and
estates now or hereafter acquired in and to oil and gas leases, oil, gas and
mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee
interests, overriding royalty and royalty interests, net profit interests and
production payment interests, including any reserved or residual interests of
whatever nature.

          "HYDROCARBONS" shall mean oil, gas, casinghead gas, drip gasoline,
natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous
hydrocarbons and all products refined or separated therefrom.

          "INDEBTEDNESS" shall mean any and all amounts owing or to be owing by
the Borrower to the Agent and/or Lenders in connection with the Loan Documents.

          "INDEMNIFIED PARTIES" shall have the meaning assigned such term in
Section 12.03(b).

          "INDEMNITY MATTERS" shall mean any and all actions, suits, proceedings
(including any investigations, litigation or inquiries), claims, demands and
causes of action made or threatened against a Person and, in connection
therewith, all losses, liabilities, damages (including, without limitation,
consequential damages) or reasonable costs and expenses of any kind or nature
whatsoever incurred by such Person whether caused by the sole or concurrent
negligence of such Person seeking indemnification.

          "INDENTURE" shall mean that certain Indenture dated as of August 20,
1998 between Brigham Exploration, as the issuer of the Subordinated Debt, and
Chase Bank of Texas, National Association, as the trustee as amended by that
First Amendment to Indenture dated March 26, 1999 and that Second Amendment to
Indenture dated as of February 17, 2000.

                                      8
<PAGE>

          "INITIAL FUNDING" shall mean the funding of the initial Loans pursuant
to Section 6.01 hereof.

          "INITIAL RESERVE REPORT" shall mean the report of Cawley, Gillespie &
Associates with respect to the Oil and Gas Properties of the Borrower as of
December 31, 1999, a copy of which has been delivered to the Agent.

          "INTEREST COVERAGE RATIO" shall have the meaning assigned such term in
the Guaranty Agreement dated as of the date hereof, as from time to time
amended, executed by Brigham Exploration.

          "INTEREST PAYMENT DATES" has the meaning assigned to it in Section
3.02.

          "JEDI-II" shall mean Joint Energy Development Investments II Limited
Partnership, a Delaware limited partnership.

          "LENDING RELATIONSHIP" shall refer to this Agreement and the other
Loan Documents, together with any and all negotiations, discussions, acts,
omissions, renewals, extensions, and other agreements or events related to this
Agreement and such other Loan Documents, the parties' obligations thereunder and
the transactions contemplated thereby, including, without limitation, any such
negotiations, discussions, acts, omissions, renewals, extensions, other
agreements or events that may occur on the date hereof and the instruments and
documents executed and delivered in connection herewith or relating hereto.

          "LIEN" shall mean any interest in Property securing an obligation owed
to, or a claim by, a Person other than the owner of the Property, whether such
interest is based on the common law, statute or contract, and whether such
obligation or claim is fixed or contingent, and including but not limited to (i)
the lien or security interest arising from a mortgage, encumbrance, pledge,
security agreement, conditional sale or trust receipt or a lease, consignment or
bailment for security purposes or (ii) production payments and the like payable
out of Oil and Gas Properties. The term "LIEN" shall include reservations,
exceptions, encroachments, easements, rights of way, covenants, conditions,
restrictions, leases and other title exceptions and encumbrances affecting
Property. For the purposes of this Agreement, a Person shall be deemed to be the
owner of any Property which it has acquired or holds subject to a conditional
sale agreement, or leases under a financing lease or other arrangement pursuant
to which title to the Property has been retained by or vested in some other
Person in a transaction intended to create a financing.

          "LOAN DOCUMENTS" shall mean this Agreement, the Subordination
Agreement, the Notes, the Agent's Fee Letter, the Warrant Agreement (and any
warrants issued pursuant thereto), the agreements or instruments described or
referred to in Exhibit D, and any and all other agreements or instruments now or
hereafter executed and delivered by the Borrower or any Subsidiary or Affiliate
of the Borrower including, without limitation, Brigham Exploration (other than
assignments, participation or similar agreements between any Lender and any
other lender or creditor with respect to any Indebtedness pursuant to this
Agreement) in connection with, or as security for the payment or performance of
the Notes, or this Agreement, as such agreements may be amended, supplemented or
restated from time to time.

                                        9
<PAGE>

          "LOANS" shall mean the loans as provided for by Section 2.01.

          "MAJORITY LENDERS" means at any time while no Loans are outstanding,
Lenders having at least seventy-five percent (75%) of the Aggregate Commitments
of the Lenders and, at any time while Loans are outstanding, Lenders holding at
least seventy-five percent (75%) of the outstanding aggregate principal amount
of the portion of the Loans allocable to the Lenders (without regard to any sale
by a Lender of a participation in any Loan under Section 12.06(c)).

          "MATERIAL ADVERSE EFFECT" shall mean any material and adverse effect
on (i) the assets, liabilities, financial condition, business, operations or
affairs of Brigham Exploration and its Subsidiaries taken as a whole or the
Borrower and its Subsidiaries taken as a whole, from those reflected in the
Financial Statements or from the facts represented or warranted in any Loan
Document, or (ii) the ability of Brigham Exploration or the Borrower or Brigham
Exploration or the Borrower and their respective Subsidiaries taken as a whole
to carry out their business as at the Closing Date or as proposed as of the
Closing Date to be conducted or meet their obligations under the Loan Documents
on a timely basis.

          "MAXIMUM CREDIT AMOUNT" shall mean, as to each Lender, the amount set
forth opposite such Lender's name on Annex I under the caption "Maximum Credit
Amounts" plus such Lender's Percentage Share of any amount of interest paid in
kind pursuant to Section 3.02(b) hereof (as the same may be reduced pursuant to
Section 2.03(b) hereof as modified from time to time to reflect any assignments
permitted by Sections 12.06(b) and (c)).

          "MORTGAGES" shall mean, collectively, any Standard Mortgages and any
New Mortgages.

          "MORTGAGED PROPERTY" shall mean the Property owned by the Borrower and
which is subject to the Liens existing and to exist under the terms of the Loan
Documents.

          "MULTIEMPLOYER PLAN" shall mean a Plan defined as such in Section
3(37) or 4001(a)(3) of ERISA.

          "NET SEISMIC AND LAND EXPENDITURES" shall mean those costs incurred
after the Closing Date for seismic services, seismic data, and acquisition of
undeveloped Hydrocarbon Interests, less the net proceeds, if any, received after
the Closing Date through the sale or licensing of interests in undeveloped
Hydrocarbon Interests and/or seismic data.

          "NEW MORTGAGE" shall mean, collectively, the "New Mortgages" referred
to in item 11 of Exhibit D and any mortgages and supplements executed pursuant
to Section 8.09 (a) hereof.

          "NOTES" shall mean the Notes provided for by Section 2.06, together
with any and all renewals, extensions for any period, increases, rearrangements,
substitutions or modifications thereof.

          "NSLE LIMIT" shall have the meaning set forth in Section 9.20(a).

                                       10
<PAGE>

          "OIL AND GAS PROPERTIES" shall mean Hydrocarbon Interests; the
Properties now or hereafter pooled or unitized with Hydrocarbon Interests; all
presently existing or future unitization, pooling agreements and declarations of
pooled units and the units created thereby (including without limitation all
units created under orders, regulations and rules of any Governmental Authority)
which may affect all or any portion of the Hydrocarbon Interests; all operating
agreements, contracts and other agreements which relate to any of the
Hydrocarbon Interests or the production, sale, purchase, exchange or processing
of Hydrocarbons from or attributable to such Hydrocarbon Interests; all
Hydrocarbons in and under and which may be produced and saved or attributable to
the Hydrocarbon Interests, including all oil in tanks, the lands covered thereby
and all rents, issues, profits, proceeds, products, revenues and other incomes
from or attributable to the Hydrocarbon Interests; all tenements, hereditaments,
appurtenances and Properties in any manner appertaining, belonging, affixed or
incidental to the Hydrocarbon Interests; and all Properties, rights, titles,
interests and estates described or referred to above, including any and all
Property, real or personal, now owned or hereinafter acquired and situated upon,
used, held for use or useful in connection with the operating, working or
development of any of such Hydrocarbon Interests or Property (excluding drilling
rigs, automotive equipment or other personal property which may be on such
premises for the purpose of drilling a well or for other similar temporary uses)
and including any and all oil wells, gas wells, injection wells or other wells,
buildings, structures, fuel separators, liquid extraction plants, plant
compressors, pumps, pumping units, field gathering systems, tanks and tank
batteries, fixtures, valves, fittings, machinery and parts, engines, boilers,
meters, apparatus, appliances, tools, implements, cables, wires, towers, casing,
tubing and rods, similar equipment, surface leases, rights-of-way, easements and
servitudes together with all additions, substitutions, replacements, accessions
and attachments to any and all of the foregoing.

          "OTHER TAXES" shall have the meaning assigned such term in Section
4.06(b).

          "PARTNERS" shall mean the General Partner, Brigham Holdings I, LLC and
Brigham Holdings II, LLC.

          "PARTNERSHIP AGREEMENT" shall mean the written partnership agreement
of the Borrower among the Partners dated December 30, 1997, as amended from time
to time.

          "PBGC" shall mean the Pension Benefit Guaranty Corporation or any
entity succeeding to any or all of its functions.

          "PDNP RESERVES" shall mean proved, developed, non-producing
Hydrocarbon reserves, as determined in conformity with the guidelines in effect
from time to time as promulgated by the Society of Petroleum Engineers or its
successor association.

          "PDP RESERVES" shall mean proved, developed, producing Hydrocarbon
reserves, as determined in conformity with the guidelines in effect from time to
time as promulgated by the Society of Petroleum Engineers or its successor
association.

          "PERCENTAGE SHARE" shall mean the percentage of the Aggregate
Commitments to be provided by a Lender under this Agreement as indicated on
Annex I hereto, as modified from time to time to reflect any assignments
permitted by Section 12.06(b) or (c).

                                       11
<PAGE>

          "PERSON" shall mean any individual, corporation, company, voluntary
association, partnership, joint venture, trust, limited liability company,
unincorporated organization or government or any agency, instrumentality or
political subdivision thereof, or any other form of entity.

          "PLAN" shall mean any employee pension benefit plan, as defined in
Section 3(2) of ERISA, which (i) is currently or hereafter sponsored, maintained
or contributed to by the Borrower, any Subsidiary or an ERISA Affiliate or (ii)
was at any time during the preceding six calendar years sponsored, maintained or
contributed to, by the Borrower, any Subsidiary or an ERISA Affiliate.

          "POST-DEFAULT RATE" shall mean, in respect of any principal of any
Loan or any other amount payable by the Borrower under this Agreement or any
Note, a rate per annum during the period commencing on the date of an Event of
Default until such amount is paid in full or all Events of Default are cured or
waived equal to 2% per annum above the Fixed Rate, but in no event to exceed the
Highest Lawful Rate.

          "PRINCIPAL OFFICE" shall mean the principal office of the Agent,
presently located at 910 Louisiana, Suite 5000, Houston, Texas 77002.

          "PROPERTY" shall mean any interest in any kind of property or asset,
whether real, personal or mixed, or tangible or intangible.

          "PROVED RESERVES" means PDP, PDNP and PUD Reserves.

          "PUD RESERVES" shall mean proved, undeveloped Hydrocarbon reserves, as
determined in conformity with the guidelines in effect from time to time as
promulgated by the Society of Petroleum Engineers or its successor association.

          "PV7%" shall mean the present value, determined utilizing the Agent's
price forecast (which will take into account any Hedging Agreements of Brigham
Exploration, Borrower or any Subsidiary) and applying the Agent's reasonable
adjustments (positive or negative) to the engineering analysis prepared by
Brigham Exploration's independent reserve engineers or in-house reserve
engineers, whichever the case may be, of the forecasted future cash flow
attributable to the subject Hydrocarbon reserves, discounted at an annual rate
of 7%.

          "PV10%" shall mean the present value, determined utilizing the Agent's
price forecast (which will take into account any Hedging Agreements of Brigham
Exploration, Borrower or any Subsidiary) and applying the Agent's reasonable
adjustments (positive or negative) to the engineering analysis prepared by
Brigham Exploration's independent reserve engineers or in-house reserve
engineers, whichever the case may be, of the forecasted future cash flow
attributable to the subject Hydrocarbon reserves, discounted at an annual rate
of 10%.

          "RAPRV 10%" means the risk adjusted proved reserve value which is
equal to the lesser of (i) 100% of the PV10% of the Borrower's and any
Guarantor's PDP Reserves, and (ii) the sum of 65% of the PV10% of the Borrower's
and any Guarantor's PDP Reserves, plus 43% of the PV10% of the Borrower's and
any Guarantor's PDNP Reserves, plus 33% of the

                                       12
<PAGE>

PV7% of the Borrower's and any Guarantor's PUD Reserves. For purposes of this
definition, only Proved Reserves subject to a Mortgage shall be included.

          "RAPRV 7%" means the risk adjusted proved reserve value which is equal
to the lesser of (i) 100% of the PV7% of the Borrower's and any Guarantor's PDP
Reserves, and (ii) the sum of 65% of the PV7% of the Borrower's and any
Guarantor's PDP Reserves, plus 43% of the PV7% of the Borrower's and any
Guarantor's PDNP Reserves, plus 33% of the PV7% of the Borrower's and any
Guarantor's PUD Reserves. For purposes of this definition, only Proved Reserves
subject to a Mortgage shall be included.

          "REGULATION D" shall mean Regulation D of the Board of Governors of
the Federal Reserve System (or any successor), as the same may be amended or
supplemented from time to time.

          "REGULATORY CHANGE" shall mean, with respect to any Lender, any change
after the Closing Date in any Governmental Requirement (including Regulation D)
or the adoption or making after such date of any interpretations, directives or
requests applying to a class of lenders (including such Lender or its Applicable
Lending Office) of or under any Governmental Requirement (whether or not having
the force of law) by any Governmental Authority charged with the interpretation
or administration thereof.

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

          "RELEASED PARTY" shall mean each of the Agent, the Lenders and their
respective predecessors, successors, assigns, directors, officers, partners,
employees, agents, attorneys,

                                      13
<PAGE>

principals and Affiliates and all other Persons liable or who might be claimed
to be liable on their behalf (collectively, the "Released Parties").

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

          "REQUIRED PAYMENT" shall have the meaning assigned such term in
Section 4.04.

          "RESERVE REPORT" shall mean a report, in form satisfactory to the
Agent, setting forth, as of the dates set forth in Section 8.07(a) and (b) (or
such other date in the event of an unscheduled redetermination); (i) the proved
oil and gas reserves attributable to the Borrower's and its Subsidiaries'
Hydrocarbon Interests together with a projection of the rate of production and
future net income, taxes, operating expenses and capital expenditures with
respect thereto as of such date, based upon the pricing assumptions consistent
with SEC reporting requirements at the time (or other pricing provided by the
Agent) and (ii) such other information as the Agent may reasonably request. The
term "Reserve Report" shall also include the Initial Reserve Report, the
supplemental Reserve Reports described in Section 8.07(a), and the information
to be provided by the Borrower of each year pursuant to Section 8.07(c).

          "RESPONSIBLE OFFICER" shall mean, as to any Person, the Chief
Executive Officer, the President or any Vice President of such Person and the
Chief Financial Officer of such Person. Unless otherwise specified, all
references to a Responsible Officer herein shall mean a Responsible Officer of
the Borrower.

          "SEC" shall mean the Securities and Exchange Commission or any
successor Governmental Authority.

          "SECURITIES PURCHASE AGREEMENT" shall mean that certain Securities
Purchase Agreement dated August 20, 1998 among Brigham Exploration, ECT (as
predecessor to ECT Merchant) and JEDI-II, as agent for such purchasers regarding
the Subordinated Debt, as heretofore amended.

          "SENIOR INDEBTEDNESS" shall mean any and all amounts owing or to be
owing by Borrower, Brigham Exploration or any Subsidiary of Borrower or Brigham
Exploration in connection with (a) the Senior Loan Documents, and/or (b) any
Hedging Agreements now or hereafter existing between (i) Borrower and BMO and
its successors or assigns (a "BMO Hedge Party") and Soc-Gen and its successors
or assigns (a "Soc-Gen Hedge Party") entered into while such BMO Hedge Party or
such Soc-Gen Hedge Party is a Senior Lender; and (ii) Borrower and SCI and its
successors or assigns (with Loans or Commitments of $20 million or more) or any
Affiliate of SCI (SCI and any Affiliate of SCI a "SCI Hedge Party") entered into
while such SCI Hedge Party or Fathom Energy Capital I, L.L.C, is a Senior Lender
and permitted by the terms of the Senior Credit Agreement and all renewals,
extensions and/or rearrangements of any of the above.

          "SENIOR LOAN DOCUMENTS" means the "Loan Documents" as such term is at
this time and from time to time defined in the Senior Credit Agreement.

                                      14
<PAGE>

          "SPECIAL ENTITY" shall mean any joint venture, limited liability
company or partnership, general or limited partnership or any other type of
partnership or company other than a corporation in which a Person or one or more
of its other Subsidiaries is a member, owner, partner or joint venturer and
owns, directly or indirectly, at least a majority of the equity of such entity
or controls such entity, but excluding any tax partnerships that are not
classified as partnerships under state law. For purposes of this definition, any
Person which owns directly or indirectly an equity investment in another Person
which allows the first Person to manage or elect managers who manage the normal
activities of such second Person will be deemed to "control" such second Person
(e.g. a sole general partner controls a limited partnership).

          "STANDARD MORTGAGE" shall mean, collectively, the "Standard Mortgages"
referred to in item 10 of Exhibit D and any mortgages and supplements executed
pursuant to Section 8.09 (b) hereof.

          "SUBORDINATION AGREEMENT" means that certain Intercreditor and
Subordination Agreement of even date herewith by and between Borrower, Senior
Agent, Senior Lenders, Agent and Lenders, as from time to time amended,
supplemented or modified.

          "SUBSIDIARY" shall mean (i) any corporation of which at least a
majority of the outstanding shares of stock having by the terms thereof ordinary
voting power to elect a majority of the board of directors of such corporation
(irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time directly or indirectly owned or
controlled by a Person or one or more of its Subsidiaries or by a Person and one
or more of its Subsidiaries and (ii) any Special Entity. Unless otherwise
indicated herein, each reference to the term "Subsidiary" shall mean a
Subsidiary of the Borrower.

          "TANGIBLE NET WORTH" shall mean, as at any date, the sum of the
following for Brigham Exploration and its Consolidated Subsidiaries determined
(without duplication) in accordance with GAAP (determined without regard to any
write up or write down resulting from any changes in GAAP subsequent to
September 30, 1999):

                (i) the amount of preferred stock and common stock at par plus
                    the amount of surplus of Brigham Exploration, PLUS

               (ii) the retained earnings (or, in the case of retained earnings
                    deficit, MINUS the amount of such deficit), MINUS

              (iii) the sum of the following: cost of treasury shares and the
                    book value of all assets of Brigham Exploration and its
                    Consolidated Subsidiaries which should be classified as
                    intangibles (without duplication of deductions in respect of
                    items already deducted in arriving at surplus and retained
                    earnings) but in any event including as such intangibles the
                    following: goodwill, research and development costs,
                    trademarks, trade names, copyrights, patents and franchises,
                    unamortized debt discount and expense, all

                                       15
<PAGE>

                    reserves and any writeup in the book value of assets
                    resulting from a revaluation thereof.

          "TAXES" shall have the meaning assigned such term in Section 4.06(a).

          "TERM ORRI" shall mean the term overriding royalty interest created
pursuant to that certain Conveyance of Adjustable Term Overriding Royalty
Interest between Borrower, ECT Merchant and JEDI-II.

          "TRADE PAYABLES" shall mean customary trade payables incurred in the
ordinary course of business.

          "WARRANT AGREEMENT" means as agreement in substantially the form
attached hereto as Schedule 6.01(o).

          "WHOLLY-OWNED SUBSIDIARY" shall mean, as to a Person, any Subsidiary
of which all of the outstanding shares of stock (or other ownership interests)
having by the terms thereof ordinary voting power to elect the board of
directors (or other managing persons) of such entity, other than directors'
qualifying shares, are owned or controlled by such Person or one or more of the
Wholly-Owned Subsidiaries or by such Person and one or more of the Wholly-Owned
Subsidiaries.

          Section 1.03 ACCOUNTING TERMS AND DETERMINATIONS. Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
determinations with respect to accounting matters hereunder shall be made, and
all financial statements and certificates and reports as to financial matters
required to be furnished to the Agent or the Lenders hereunder shall be
prepared, in accordance with GAAP, applied on a basis consistent with the
audited financial statements of the Borrower referred to in Section 7.02 (except
for changes concurred with by the Borrower's independent public accountants).

                                    ARTICLE 2

                                   COMMITMENTS

          Section 2.01 LOANS. Each Lender severally agrees, on the terms of this
Agreement, to make Loans to the Borrower during the period from and including
(i) the Closing Date or (ii) such later date that such Lender becomes a party to
this Agreement as provided in Section 12.06(b), to but excluding, the Credit
Advances Termination Date in an aggregate principal amount at any one time
outstanding up to but not exceeding the amount of such Lender's Commitment as
then in effect; provided, however, that the aggregate principal amount of all
such Loans by all Lenders hereunder at any one time outstanding shall not exceed
the Aggregate Commitments. The principal amount of the Loans which are repaid
may not be reborrowed.

          Section 2.02 BORROWINGS, CONTINUATIONS AND CONVERSIONS.

               (a) BORROWINGS. The Borrower shall give the Agent
          (which shall promptly notify the Lenders) advance notice as
          hereinafter provided of each borrowing

                                      16
<PAGE>

          hereunder, which shall specify the aggregate amount of such borrowing,
          and the date (which shall be a Business Day) of the Loans to be
          borrowed.

               (b) MINIMUM AMOUNTS. Any borrowings shall be in amounts of at
          least $1,000,000 or any whole multiple of $1,000,000 in excess
          thereof.

               (c) NOTICES. All borrowings, continuations and conversions shall
          require advance written notice to the Agent (which shall
          promptly notify the Lenders) in the form of Exhibit B hereto (or
          telephonic notice promptly confirmed by such a written notice), which
          in each case shall be irrevocable, from the Borrower to be received by
          the Agent not later than 11:00 a.m. Houston, Texas time at least three
          Business Days prior to the date of each borrowing. Without in any way
          limiting the Borrower's obligation to confirm in writing any
          telephonic notice, the Agent may act without liability upon the basis
          of telephonic notice believed by the Agent in good faith to be from
          the Borrower prior to receipt of written confirmation. In each such
          case, the Borrower hereby waives the right to dispute the Agent's
          record of the terms of such telephonic notice except in the case of
          gross negligence or willful misconduct by the Agent.

               (d) ADVANCES. Not later than 11:00 a.m. Houston, Texas time on
          the date specified for each borrowing hereunder, each Lender shall
          make available the amount of the Loan to be made by it on such date to
          the Agent, to an account which the Agent shall specify, in immediately
          available funds for the account of the Borrower. The amounts so
          received by the Agent shall, subject to the terms and conditions of
          this Agreement, be made available to the Borrower by depositing the
          same, in immediately available funds, in an account of the Borrower,
          designated by the Borrower and maintained at the Principal Office.

          Section 2.03 CHANGES OF COMMITMENTS.

               (a) The Aggregate Commitments shall at all times be equal to the
          Aggregate Maximum Credit Amounts.

               (b) The Borrower shall have the right to terminate or to reduce
          the amount of the Aggregate Maximum Credit Amounts at any time or from
          time to time upon not less than three (3) Business Days' prior notice
          to the Agent (which shall promptly notify the Lenders) of each such
          termination or reduction, which notice shall specify the effective
          date thereof and the amount of any such reduction (which shall not be
          less than $1,000,000 or any whole multiple of $1,000,000 in excess
          thereof) and shall be irrevocable and effective only upon receipt by
          the Agent.

               (c) The Aggregate Maximum Credit Amounts once terminated or
          reduced may not be reinstated.

                                       17
<PAGE>

          Section 2.04 FEES.

               (a) COMMITMENT FEE. The Borrower shall pay to the Agent (to be
          allocated to the Lenders) a commitment fee on the daily average unused
          amount of the Aggregate Commitments for the period from and including
          the Closing Date up to but excluding the earlier of the date the
          Aggregate Commitments are terminated or the Credit Advances
          Termination Date at a rate per annum equal to 5/8 of 1%. Accrued
          commitment fees shall be payable quarterly in arrears on each
          Quarterly Date and on the earlier of the date the Aggregate
          Commitments are terminated or the Credit Advances Termination Date.

               (b) The Borrower shall pay to the Agent for its account such
          other fees as are set forth in the Agent's Fee Letter on the dates
          specified therein to the extent not paid prior to the Closing Date.

          Section 2.05 SEVERAL OBLIGATIONS. The failure of any Lender to make
any Loan to be made by it on the date specified therefor shall not relieve any
other Lender of its obligation to make its Loan or provide funds on such date,
but no Lender shall be responsible for the failure of any other Lender to make a
Loan to be made by such other Lender or to provide funds to be provided by such
other Lender.

          Section 2.06 NOTES. The Loans made by each Lender shall be evidenced
by a single promissory note of the Borrower in substantially the form of Exhibit
A hereto, dated (i) the Closing Date or (ii) the effective date of an Assignment
pursuant to Sections 12.06(b) and (c), payable to the order of such Lender in a
principal amount equal to its Maximum Credit Amount as in effect plus such
Lender's Percentage Share of $3,000,000 (to accommodate deemed advances through
payment in kind pursuant to Section 3.02(b) hereof) and otherwise duly completed
and such substitute Notes as required by Section 12.06(d). The date, amount,
interest rate and Interest Period of each Loan made by each Lender, and all
payments made on account of the principal thereof, shall be recorded by such
Lender on its books for its Note, and, prior to any transfer, may be endorsed by
such Lender on a schedule attached to such Note or any continuation thereof or
on any separate record maintained by such Lender. Failure to make any such
notation or to attach a schedule shall not affect any Lender's or the Borrower's
rights or obligations in respect of such Loans or affect the validity of such
transfer by any Lender of its Note.

          Section 2.07 PREPAYMENTS.

               (a) The Borrower may prepay the Loans upon not less than one (1)
          Business Day's prior notice to the Agent (which shall promptly notify
          the Lenders), which notice shall specify the prepayment date (which
          shall be a Business Day) and the amount of the prepayment (which shall
          be at least $1,000,000 or the remaining aggregate principal balance
          outstanding on the Notes) and shall be irrevocable and effective only
          upon receipt by the Agent, provided that interest on the principal
          prepaid, accrued to the prepayment date, shall be paid on the
          prepayment date.

                                       18
<PAGE>

               (b) If, after giving effect to any termination or reduction of
          the Aggregate Maximum Credit Amounts pursuant to Section 2.03, the
          outstanding aggregate principal amount of the Loans exceeds the
          Aggregate Maximum Credit Amounts, the Borrower shall prepay the Loans
          on the date of such termination or reduction in an aggregate principal
          amount equal to the excess, together with interest on the principal
          amount paid to the date of such prepayment.

               (c) Prepayments permitted or required under this Section 2.07
          shall be without premium or penalty. All payments of principal on the
          Loans shall reduce the Aggregate Maximum Credit Amounts.

          Section 2.08 LENDING OFFICES. The Loans made by each Lender shall be
made and maintained at such Lender's Applicable Lending Office.

                                   ARTICLE 3

                       PAYMENTS OF PRINCIPAL AND INTEREST

          Section 3.01 REPAYMENT OF LOANS. On the Final Maturity Date the
Borrower shall repay the outstanding aggregate principal and accrued and unpaid
interest under the Notes.

          Section 3.02 INTEREST.

          (a) The Borrower will pay to the Agent, for the account of each
Lender, interest on the unpaid principal amount of each Loan made by such Lender
for the period commencing on the date such Loan is made to but excluding the
date such Loan shall be paid in full, either in cash or, if permitted under
Section 3.02 (b) in kind, at the Fixed Rate.

Notwithstanding the foregoing, the Borrower will pay to the Agent, for the
account of each Lender interest at the applicable Post-Default Rate on any
principal of any Loan made by such Lender, and (to the fullest extent permitted
by law) on any other amount payable by the Borrower hereunder, under any Loan
Document or under any Note held by such Lender to or for account of such Lender,
for the period commencing on the date of an Event of Default until the same is
paid in full or all such Events of Default are cured or waived. Accrued interest
on Loans shall be payable on the last day of each January, April, July and
October, through the Final Maturity Date, starting January 31, 2001
(individually, an "Interest Payment Date" and, collectively, the "Interest
Payment Dates"), except that interest payable at the Post-Default Rate shall be
payable from time to time on demand.

The foregoing rates shall apply to interest paid in cash and to interest paid in
kind.

          (b) On any Interest Payment Date occurring on or before October, 2002,
Borrower shall have the absolute right to pay 50% of all accrued interest on the
Notes in kind, instead of in cash, as provided in this Section 3.02(b). In the
event any accrued interest due on any particular Interest Payment Date is paid
in kind, it shall be deemed an advance of principal under the Notes and, as of
the Interest Payment Date, shall be added to the outstanding principal balance
of the Notes (notwithstanding that the outstanding principal balance may exceed,
in the aggregate, the face amount of the Notes). In order to exercise its option
to pay interest in kind under this

                                       19
<PAGE>

Section 3.02(b), the Borrower shall, on or, at any time, before the applicable
Interest Payment Date, deliver written notice to the Agent, executed by a
Responsible Officer, specifying its election to pay interest in kind. Should
Borrower fail to deliver such written notice in a timely fashion, Borrower shall
be deemed to have irrevocably elected to make payment of such accrued interest
in cash. In the event Borrower elects to pay interest in kind, such interest
shall be calculated at the Fixed Rate.

                                   ARTICLE 4

                PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS; ETC.

          Section 4.01 PAYMENTS. Except to the extent otherwise provided herein,
all payments of principal, interest and other amounts to be made by the Borrower
under the Loan Documents shall be made in Dollars, in immediately available
funds, to the Agent at such account as the Agent shall specify by notice to the
Borrower from time to time, not later than noon Houston, Texas time on the date
on which such payments shall become due (each such payment made after such time
on such due date to be deemed to have been made on the next succeeding Business
Day). Such payments shall be made without (to the fullest extent permitted by
applicable law) defense, set-off or counterclaim. Each payment received by the
Agent under this Agreement or any Note for account of a Lender shall be paid
promptly to such Lender in immediately available funds. If the due date of any
payment under this Agreement or any Note would otherwise fall on a day which is
not a Business Day such date shall be extended to the next succeeding Business
Day and interest shall be payable for any principal so extended for the period
of such extension.

          Section 4.02 PRO RATA TREATMENT. Except to the extent as otherwise
provided herein each Lender agrees that: (i) each borrowing from the Lenders
under Section 2.01 shall be made from the Lenders pro rata in accordance with
their Percentage Share, each payment of commitment fee or other fees under
Sections 2.04(a) and (b) shall be made for account of the Lenders pro rata in
accordance with their Percentage Share, and each termination or reduction of the
amount of the Aggregate Maximum Credit Amounts under Section 2.03(b) shall be
applied to the Commitment of each Lender, pro rata according to the amounts of
its respective Commitment; (ii) each payment of principal of Loans by the
Borrower shall be made for account of the Lenders pro rata in accordance with
the respective unpaid principal amount of the Loans held by the Lenders; and
(iii) each payment of interest on Loans by the Borrower shall be made for
account of the Lenders pro rata in accordance with the amounts of interest due
and payable to the respective Lenders.

          Section 4.03 COMPUTATIONS. Interest on Loans shall be computed on the
basis of a year of 365 or 366 days, as the case may be, and actual days elapsed
(including the first day but excluding the last day) occurring in the period for
which such interest is payable.

          Section 4.04 NON-RECEIPT OF FUNDS BY THE AGENT. Unless the Agent shall
have been notified by a Lender or the Borrower prior to the date on which such
notifying party is scheduled to make payment to the Agent (in the case of a
Lender) of the proceeds of a Loan or (in the case of the Borrower) a payment to
the Agent for account of one or more of the Lenders hereunder (such payment
being herein called the "REQUIRED PAYMENT"), which notice shall be

                                       20
<PAGE>

effective upon receipt, that it does not intend to make the Required Payment to
the Agent, the Agent may assume that the Required Payment has been made and may,
in reliance upon such assumption (but shall not be required to), make the amount
thereof available to the intended recipient(s) on such date and, if such Lender
or the Borrower (as the case may be) has not in fact made the Required Payment
to the Agent, the recipient(s) of such payment shall, on demand, repay to the
Agent the amount so made available together with interest thereon in respect of
each day during the period commencing on the date such amount was so made
available by the Agent until but excluding the date the Agent recovers such
amount at a rate per annum which, for any Lender as recipient, will be equal to
the Federal Funds Rate, and for the Borrower as recipient, will be equal to the
Fixed Rate.

          Section 4.05 SET-OFF, SHARING OF PAYMENTS, ETC.

               (a) The Borrower agrees that, in addition to (and without
          limitation of) any right of set-off, bankers' lien or counterclaim a
          Lender may otherwise have, each Lender shall have the right and be
          entitled (after consultation with the Agent), at its option, to offset
          balances held by it or by any of its Affiliates for account of the
          Borrower at any of its offices, in Dollars or in any other currency,
          against any principal of or interest on any of such Lender's Loans, or
          any other amount payable to such Lender hereunder, which is not paid
          when due (regardless of whether such balances are then due to the
          Borrower), in which case it shall promptly notify the Borrower and the
          Agent thereof, provided that such Lender's failure to give such notice
          shall not affect the validity thereof.

               (b) If any Lender shall obtain payment of any principal of or
          interest on any Loan made by it to the Borrower under this Agreement
          through the exercise of any right of set-off, banker's lien or
          counterclaim or similar right or otherwise, and, as a result of such
          payment, such Lender shall have received a greater percentage of the
          principal or interest then due hereunder by the Borrower to such
          Lender than the percentage received by any other Lenders, it shall
          promptly (i) notify the Agent and each other Lender thereof and (ii)
          purchase from such other Lenders participations in (or, if and to the
          extent specified by such Lender, direct interests in) the Loans made
          by such other Lenders (or in interest due thereon, as the case may be)
          in such amounts, and make such other adjustments from time to time as
          shall be equitable, to the end that all the Lenders shall share the
          benefit of such excess payment (net of any expenses which may be
          incurred by such Lender in obtaining or preserving such excess
          payment) pro rata in accordance with the unpaid principal and/or
          interest on the Loans held by each of the Lenders. To such end all the
          Lenders shall make appropriate adjustments among themselves (by the
          resale of participations sold or otherwise) if such payment is
          rescinded or must otherwise be restored. The Borrower agrees that any
          Lender so purchasing a participation (or direct interest) in the Loans
          made by other Lenders (or in interest due thereon, as the case may be)
          may exercise all rights of set-off, banker's lien, counterclaim or
          similar rights with respect to such participation as fully as if such
          Lender were a direct holder of Loans in the amount of such
          participation. Nothing contained herein shall require any Lender to
          exercise any such right or shall affect the right of any Lender to
          exercise, and

                                       21
<PAGE>

          retain the benefits of exercising, any such right with respect to any
          other indebtedness or obligation of the Borrower. If under any
          applicable bankruptcy, insolvency or other similar law, any Lender
          receives a secured claim in lieu of a set-off to which this Section
          4.05 applies, such Lender shall, to the extent practicable, exercise
          its rights in respect of such secured claim in a manner consistent
          with the rights of the Lenders entitled under this Section 4.05 to
          share the benefits of any recovery on such secured claim.

          Section 4.06 TAXES.

               (a) PAYMENTS FREE AND CLEAR. Any and all payments by the Borrower
          hereunder shall be made, in accordance with Section 4.01, free and
          clear of and without deduction for any and all present or future
          taxes, levies, imposts, deductions, charges or withholdings, and all
          liabilities with respect thereto, EXCLUDING, in the case of each
          Lender and the Agent, taxes imposed on its income, and franchise or
          similar taxes imposed on it, by (i) any jurisdiction (or political
          subdivision thereof) of which the Agent or such Lender, as the case
          may be, is a citizen or resident or in which such Lender has an
          Applicable Lending Office, (ii) the jurisdiction (or any political
          subdivision thereof) in which the Agent or such Lender is organized,
          or (iii) any jurisdiction (or political subdivision thereof) in which
          such Lender or the Agent is presently doing business in which taxes
          are imposed solely as a result of doing business in such jurisdiction
          (all such non-excluded taxes, levies, imposts, deductions, charges,
          withholdings and liabilities being hereinafter referred to as
          "TAXES"). If the Borrower shall be required by law to deduct any Taxes
          from or in respect of any sum payable hereunder to the Lenders or the
          Agent (i) the sum payable shall be increased by the amount necessary
          so that after making all required deductions (including deductions
          applicable to additional sums payable under this Section 4.06) such
          Lender or the Agent (as the case may be) shall receive an amount equal
          to the sum it would have received had no such deductions been made,
          (ii) the Borrower shall make such deductions and (iii) the Borrower
          shall pay the full amount deducted to the relevant taxing authority or
          other Governmental Authority in accordance with applicable law.

               (b) OTHER TAXES. In addition, to the fullest extent permitted by
          applicable law, the Borrower agrees to pay any present or future stamp
          or documentary taxes or any other excise or property taxes, charges or
          similar levies that arise from any payment made hereunder or from the
          execution, delivery or registration of, or otherwise with respect to,
          this Agreement, any Assignment or any other Loan Document (hereinafter
          referred to as "OTHER TAXES").

               (c) INDEMNIFICATION. TO THE FULLEST EXTENT PERMITTED BY
          APPLICABLE LAW, THE BORROWER WILL INDEMNIFY EACH LENDER AND THE AGENT
          FOR THE FULL AMOUNT OF TAXES AND OTHER TAXES (INCLUDING, BUT NOT
          LIMITED TO, ANY TAXES OR OTHER TAXES IMPOSED BY ANY GOVERNMENTAL
          AUTHORITY ON AMOUNTS PAYABLE UNDER

                                       22
<PAGE>

          THIS SECTION 4.06) PAID BY SUCH LENDER OR THE AGENT (ON THEIR BEHALF
          OR ON BEHALF OF ANY LENDER), AS THE CASE MAY BE, AND ANY LIABILITY
          (INCLUDING PENALTIES, INTEREST AND EXPENSES) ARISING THEREFROM OR WITH
          RESPECT THERETO, WHETHER OR NOT SUCH TAXES OR OTHER TAXES WERE
          CORRECTLY OR LEGALLY ASSERTED UNLESS THE PAYMENT OF SUCH TAXES WAS NOT
          CORRECTLY OR LEGALLY ASSERTED AND SUCH LENDER'S PAYMENT OF SUCH TAXES
          OR OTHER TAXES WAS THE RESULT OF ITS GROSS NEGLIGENCE OR WILLFUL
          MISCONDUCT. ANY PAYMENT PURSUANT TO SUCH INDEMNIFICATION SHALL BE MADE
          WITHIN THIRTY (30) DAYS AFTER THE DATE ANY LENDER OR THE AGENT, AS THE
          CASE MAY BE, MAKES WRITTEN DEMAND THEREFOR. IF ANY LENDER OR THE AGENT
          RECEIVES A REFUND OR CREDIT IN RESPECT OF ANY TAXES OR OTHER TAXES FOR
          WHICH SUCH LENDER OR THE AGENT HAS RECEIVED PAYMENT FROM THE BORROWER
          IT SHALL PROMPTLY NOTIFY THE BORROWER OF SUCH REFUND OR CREDIT AND
          SHALL, IF NO DEFAULT HAS OCCURRED AND IS CONTINUING, WITHIN THIRTY
          (30) DAYS AFTER RECEIPT OF A REQUEST BY THE BORROWER (OR PROMPTLY UPON
          RECEIPT, IF THE BORROWER HAS REQUESTED APPLICATION FOR SUCH REFUND OR
          CREDIT PURSUANT HERETO), PAY AN AMOUNT EQUAL TO SUCH REFUND OR CREDIT
          TO THE BORROWER WITHOUT INTEREST (BUT WITH ANY INTEREST SO REFUNDED OR
          CREDITED), PROVIDED THAT THE BORROWER, UPON THE REQUEST OF SUCH LENDER
          OR THE AGENT, AGREES TO RETURN SUCH REFUND OR CREDIT (PLUS PENALTIES,
          INTEREST OR OTHER CHARGES) TO SUCH LENDER OR THE AGENT IN THE EVENT
          SUCH LENDER OR THE AGENT IS REQUIRED TO REPAY SUCH REFUND OR CREDIT.

               (d) LENDER REPRESENTATIONS.

               (i)  Each Lender represents that it is either (1) a corporation
                    or banking association organized under the laws of the
                    United States of America or any state thereof or (2) it is
                    entitled to complete exemption from United States
                    withholding tax imposed on or with respect to any payments,
                    including fees, to be made to it pursuant to this Agreement
                    (A) under an applicable provision of a tax convention to
                    which the United States of America is a party or (B) because
                    it is acting through a branch, agency or office in the
                    United States of America and any payment to be received by
                    it hereunder is effectively connected with a trade or
                    business in the United States of America. Each Lender that
                    is not a corporation or banking association organized under
                    the laws of the United States of America or any state
                    thereof agrees to provide to the Borrower and the Agent on
                    the Closing Date, or on the date of its delivery of

                                       23
<PAGE>

                    the Assignment pursuant to which it becomes a Lender, and at
                    such other times as required by United States law or as the
                    Borrower or the Agent shall reasonably request, two accurate
                    and complete original signed copies of either (A) Internal
                    Revenue Service Form 4224 (or successor form) certifying
                    that all payments to be made to it hereunder will be
                    effectively connected to a United States trade or business
                    (the "FORM 4224 CERTIFICATION") or (B) Internal Revenue
                    Service Form 1001 (or successor form) certifying that it is
                    entitled to the benefit of a provision of a tax convention
                    to which the United States of America is a party which
                    completely exempts from United States withholding tax all
                    payments to be made to it hereunder (the "FORM 1001
                    CERTIFICATION"). In addition, each Lender agrees that if it
                    previously filed a Form 4224 Certification, it will deliver
                    to the Borrower and the Agent a new Form 4224 Certification
                    prior to the first payment date occurring in each of its
                    subsequent taxable years; and if it previously filed a Form
                    1001 Certification, it will deliver to the Borrower and the
                    Agent a new certification prior to the first payment date
                    falling in the third year following the previous filing of
                    such certification. Each Lender also agrees to deliver to
                    the Borrower and the Agent such other or supplemental forms
                    as may at any time be required as a result of changes in
                    applicable law or regulation in order to confirm or maintain
                    in effect its entitlement to exemption from United States
                    withholding tax on any payments hereunder, PROVIDED that the
                    circumstances of such Lender at the relevant time and
                    applicable laws permit it to do so. If a Lender determines,
                    as a result of any change in either (i) a Governmental
                    Requirement or (ii) its circumstances, that it is unable to
                    submit any form or certificate that it is obligated to
                    submit pursuant to this Section 4.06, or that it is required
                    to withdraw or cancel any such form or certificate
                    previously submitted, it shall promptly notify the Borrower
                    and the Agent of such fact. If a Lender is organized under
                    the laws of a jurisdiction outside the United States of
                    America, unless the Borrower and the Agent have received a
                    Form 1001 Certification or Form 4224 Certification
                    satisfactory to them indicating that all payments to be made
                    to such Lender hereunder are not subject to United States
                    withholding tax, the Borrower shall withhold taxes from such
                    payments at the applicable statutory rate. Each Lender
                    agrees to indemnify and hold harmless the Borrower or Agent,
                    as applicable, from any United States taxes, penalties,
                    interest and other expenses, costs and losses incurred or
                    payable by (i) the Agent as a result of such Lender's
                    failure to submit any form or certificate that it is
                    required to provide pursuant to this Section 4.06 or (ii)
                    the Borrower or the Agent as a result of their reliance on
                    any such

                                       24
<PAGE>

                    form or certificate which such Lender has provided to them
                    pursuant to this Section 4.06.

               (ii) For any period with respect to which a Lender has failed to
                    provide the Borrower with the form required pursuant to this
                    Section 4.06, if any, (other than if such failure is due to
                    a change in a Governmental Requirement occurring subsequent
                    to the date on which a form originally was required to be
                    provided), such Lender shall not be entitled to
                    indemnification under Section 4.06 with respect to taxes
                    imposed by the United States which taxes would not have been
                    imposed but for such failure to provide such forms;
                    PROVIDED, HOWEVER, that should a Lender, which is otherwise
                    exempt from or subject to a reduced rate of withholding tax
                    becomes subject to taxes because of its failure to deliver a
                    form required hereunder, the Borrower shall take such steps
                    as such Lender shall reasonably request to assist such
                    Lender to recover such taxes.

               (iii) Any Lender claiming any additional amounts payable pursuant
                    to this Section 4.06 shall use reasonable efforts
                    (consistent with legal and regulatory restrictions) to file
                    any certificate or document requested by the Borrower or the
                    Agent or to change the jurisdiction of its Applicable
                    Lending Office or to contest any tax imposed if the making
                    of such a filing or change or contesting such tax would
                    avoid the need for or reduce the amount of any such
                    additional amounts that may thereafter accrue and would not,
                    in the sole determination of such Lender, be otherwise
                    disadvantageous to such Lender.

                                   ARTICLE 5

                             [INTENTIONALLY OMITTED]

                                   ARTICLE 6

                              CONDITIONS PRECEDENT

          Section 6.01 INITIAL FUNDING.

          The obligation of the Lenders to make the Initial Funding is subject
to the receipt by the Agent and the Lenders of all fees payable pursuant to
Section 2.04 on or before the Closing Date and the receipt by the Agent of the
following documents and satisfaction of the other conditions provided in this
Section 6.01, each of which shall be satisfactory to the Agent in form and
substance:

               (a) A certificate of the Secretary or an Assistant Secretary of
          each of Brigham Exploration, the General Partner and the manager of
          each other

                                      25
<PAGE>

          Guarantor setting forth (i) resolutions of its board of directors with
          respect to its authorization to execute and deliver the Loan Documents
          to which it is a party and to enter into the transactions contemplated
          in those documents, (ii) the officers (y) who are authorized to sign
          the Loan Documents to which it is a party and (z) who will, until
          replaced by another officer or officers duly authorized for that
          purpose, act as its representative for the purposes of signing
          documents and giving notices and other communications in connection
          with this Agreement and the transactions contemplated hereby, (iii)
          specimen signatures of its authorized officers, and (iv) its articles
          or certificate of incorporation and bylaws or operating agreement,
          certified as being true and complete. The Agent and the Lenders may
          conclusively rely on such certificate until the Agent receives notice
          in writing from the Borrower to the contrary.

               (b) Certificates of the appropriate state agencies with respect
          to the existence, qualification and good standing of the Borrower and
          the Guarantors.

               (c) A compliance certificate which shall be substantially in the
          form of Exhibit C-1, duly and properly executed by a Responsible
          Officer and dated as of the Closing Date.

               (d) The Notes, duly completed and executed.

               (e) The Loan Documents listed on Exhibit D hereto, duly completed
          and, where necessary or appropriate, executed in sufficient
          counterparts for recording.

               (f) Evidence satisfactory to the Agent that the Enron
          Indebtedness has been paid and satisfied in full, the Enron Mortgages
          and all other Liens securing the Enron Indebtedness have been fully
          released in proper recordable form, the Term ORRI has be reconveyed to
          the Borrower, the Enron Warrants have been cancelled, and the Enron
          Shares returned to Brigham Exploration by payment by Brigham
          Exploration of a sum not to exceed $20,000,000 plus reasonable Enron
          legal fees.

               (g) Execution and delivery of the Subordination Agreement.

               (h) An opinion of Thompson & Knight LLP, special counsel to the
          Borrower and the Guarantors in form reasonably satisfactory to the
          Agent.

               (i) A certificate of insurance coverage of the Borrower
          evidencing that the Borrower is carrying insurance in accordance with
          Section 7.19 hereof.

               (j) The Agent shall be reasonably satisfied with the
          environmental condition of the Mortgaged Properties.

               (k) Appropriate UCC search certificates reflecting no prior liens
          or security interests, except those securing the Senior Indebtedness.

                                     26
<PAGE>

               (l) Borrower shall have submitted to the Lenders the initial
          CAPEX Plan, which CAPEX Plan shall be satisfactory in form and
          substance to the Majority Lenders.

               (m) Borrower shall have submitted to the Lenders the Hedging
          Agreements described on Schedule 7.20, which Hedging Agreements shall
          be satisfactory in form and substance to the Majority Lenders.

               (n) Execution and delivery of the Agent's Fee Letter.

               (o) The Warrant Agreement, duly executed and delivered.

               (p) Execution and delivery of the Ancillary Agreement between SCI
          and Borrower pertaining to the reduction, under certain circumstances,
          of a portion of SCI's outstanding indebtedness under the Senior Credit
          Agreement.

               (q) The issuance by Brigham Exploration of preferred equity
          securities for a consideration of not less than $20,000,000, before
          deduction of fees and commissions, and otherwise on terms reasonably
          acceptable to the Agent.

               (r) Such other documents as the Agent or any Lender or special
          counsel to the Agent may reasonably request.

          Notwithstanding the foregoing, the execution and delivery of the Loan
Documents may occur at any time on or before November 3, 2000 and, in connection
therewith, Borrower will deliver a supplementary or replacement opinion of
counsel that supplements or replaces the original opinion delivered pursuant to
subsection (h) above, with such opinion to cover Brigham Holdings I, LLC and
Brigham Holdings II, LLC additionally and to the same effect as the original
opinion delivered pursuant to subsection (h) above. Failure to deliver the
documents described in this paragraph shall constitute an "Event of Default"
under this Agreement.

          Section 6.02 INITIAL, SUBSEQUENT LOANS. The obligation of the Lenders
to make Loans to the Borrower upon the occasion of each borrowing hereunder
(including the Initial Funding) is subject to the further conditions precedent
that, as of the date of such Loans and after giving effect thereto:

               (a) no Default shall have occurred and be continuing;

               (b) no Material Adverse Effect shall have occurred and be
          continuing; and

               (c) the representations and warranties made by the Borrower in
          Article VII and in the Loan Documents or by any Guarantor in any other
          Loan Document shall be true in all material respects on and as of the
          date of the making of such Loans with the same force and effect as if
          made on and as of such date and following such new borrowing, except
          to the extent such representations and warranties (i) are expressly
          limited to an earlier date or the Majority Lenders may expressly
          consent in writing to the contrary or (ii) in the case only of the
          representations and warranties made by the Borrower in subsections
          7.09 and 7.22

                                     27
<PAGE>

          of Article VII, if not true in all material respects, such failure
          does not give rise a Material Adverse Effect or a Default.

          Each request for a borrowing by the Borrower hereunder shall
constitute a certification by the Borrower to the effect set forth in Section
6.02(a), (b) and (c) above (as of the date of such notice and, unless the
Borrower otherwise notifies the Agent prior to the date of and immediately
following such borrowing).

          Section 6.03 CONDITIONS PRECEDENT FOR THE BENEFIT OF LENDERS. All
conditions precedent to the obligations of the Lenders to make any Loan are
imposed hereby solely for the benefit of the Lenders, and no other Person may
require satisfaction of any such condition precedent or be entitled to assume
that the Lenders will refuse to make any Loan in the absence of strict
compliance with such conditions precedent.

          Section 6.04 NO WAIVER. No waiver of any condition precedent shall
preclude the Agent or the Lenders from requiring such condition to be met prior
to making any subsequent Loan or preclude the Lenders from thereafter declaring
that a subsequent failure of the Borrower to satisfy such condition precedent
constitutes a Default.

                                   ARTICLE 7

                         REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Agent and the Lenders that
(each representation and warranty herein is given as of the Closing Date and
shall be deemed repeated and reaffirmed on the dates of each borrowing as
provided in Section 6.02):

          Section 7.01 CORPORATE EXISTENCE. The Borrower: (i) is a limited
partnership duly organized, legally existing and in good standing under the laws
of the jurisdiction of its formation; (ii) has all requisite power, and has all
material governmental licenses, authorizations, consents and approvals necessary
to own its assets and carry on its business as now being or as proposed to be
conducted; and (iii) is qualified to do business in all jurisdictions in which
the nature of the business conducted by it makes such qualification necessary
and where failure so to qualify would have a Material Adverse Effect.

          Section 7.02 FINANCIAL CONDITION. The audited consolidated balance
sheet of Brigham Exploration and its Consolidated Subsidiaries as at December
31, 1999 and the related consolidated statement of income, stockholders' equity
and cash flow of Brigham Exploration and its Consolidated Subsidiaries for the
fiscal year ended on said date, with the opinion thereon of Price Waterhouse
heretofore furnished to each of the Lenders and the unaudited consolidated
balance sheet of Brigham Exploration and its Consolidated Subsidiaries as at
June 30, 2000, and their related consolidated statements of income,
stockholders' equity and cash flow of Brigham Exploration and its Consolidated
Subsidiaries for the six-month period ended on such date heretofore furnished to
the Agent, are complete and correct and fairly present the consolidated
financial condition of Brigham Exploration and its Consolidated Subsidiaries as
at said dates and the results of its operations for the fiscal year and the
six-month period on said dates, all in

                                       28
<PAGE>

accordance with GAAP, as applied on a consistent basis (subject, in the case of
the interim financial statements, to normal year-end adjustments). Neither
Brigham Exploration nor any Consolidated Subsidiary has on the Closing Date any
material Debt, Trade Payables, contingent liabilities, liabilities for taxes,
unusual forward or long-term commitments or unrealized or anticipated losses
from any unfavorable commitments, except as referred to or reflected or provided
for in the Financial Statements or in Schedule 7.02. Since December 31, 1999,
there has been no change or event having a Material Adverse Effect, except as
disclosed to the Agent in writing. Since the date of the Financial Statements,
neither the business nor the Properties of Brigham Exploration Consolidated
Subsidiaries, taken as a whole, have been materially and adversely affected as a
result of any fire, explosion, earthquake, flood, drought, windstorm, accident,
strike or other labor disturbance, embargo, requisition or taking of Property or
cancellation of contracts, permits or concessions by any Governmental Authority,
riot, activities of armed forces or acts of God or of any public enemy.

          Section 7.03 LITIGATION. Except as disclosed to the Lenders in
Schedule 7.03 hereto, at the Closing Date there is no litigation, legal,
administrative or arbitral proceeding, investigation or other action of any
nature pending or, to the knowledge of the Borrower threatened against or
affecting the Borrower or any Subsidiary which both (a) involves the possibility
of any judgment or liability against the Borrower or any Subsidiary not fully
covered by insurance (except for normal deductibles), and (b) would be more
likely than not to have a Material Adverse Effect.

          Section 7.04 NO BREACH. Neither the execution and delivery of the Loan
Documents, nor compliance with the terms and provisions hereof will conflict
with or result in a breach of, or require any consent which has not been
obtained as of the Closing Date under, the Partnership Agreement, the respective
charter or by-laws of any Subsidiary or any Governmental Requirement or any
material agreement or instrument to which the Borrower or any Subsidiary is a
party or by which it is bound or to which it or its Properties are subject, or
constitute a default under any such agreement or instrument, or result in the
creation or imposition of any Lien upon any of the material revenues or assets
of the Borrower or any Subsidiary pursuant to the terms of any such agreement or
instrument other than the Liens created by the Loan Documents.

          Section 7.05 AUTHORITY. The Borrower and each Subsidiary has all
necessary power and authority to execute, deliver and perform its obligations
under the Loan Documents to which it is a party; and the execution, delivery and
performance by the Borrower and each Subsidiary of the Loan Documents to which
it is a party, have been duly authorized by all necessary action on its part;
and the Loan Documents constitute the legal, valid and binding obligations of
the Borrower and each Subsidiary, enforceable in accordance with their terms,
except as such enforceability may be limited by bankruptcy, insolvency,
fraudulent transfer and similar laws affecting creditors' rights generally or by
general principles of equity.

          Section 7.06 APPROVALS. No authorizations, approvals or consents of,
and no filings or registrations with, any Governmental Authority are necessary
for the execution, delivery or performance by the Borrower or any Subsidiary of
the Loan Documents or for the validity or enforceability thereof.

                                       29
<PAGE>

          Section 7.07 USE OF LOANS. Subject to the terms and conditions
elsewhere herein, the proceeds of the Loans shall be used (a) to pay fees and
payables, (b) to provide additional drilling capital and (c) for general working
capital purposes; provided, however, the proceeds of the Loans shall not be used
to pay any of the Senior Indebtedness. In no event shall the proceeds of the
Loans be used to finance in whole or in part any hostile acquisition. The
Borrower is not engaged principally, or as one of its important activities, in
the business of extending credit for the purpose, whether immediate, incidental
or ultimate, of buying or carrying margin stock (within the meaning of
Regulation U or X of the Board of Governors of the Federal Reserve System) and
no part of the proceeds of any Loan hereunder will be used to buy or carry any
margin stock.

          Section 7.08 ERISA.

               (a) The Borrower and each ERISA Affiliate have complied in all
          material respects with ERISA and, where applicable, the Code regarding
          each Plan.

               Each Plan is, and has been, maintained in substantial compliance
          with ERISA and, where applicable, the Code.

               No act, omission or transaction has occurred which could result
          in imposition on the Borrower or any ERISA Affiliate (whether directly
          or indirectly) of an amount of $100,000 or more as (i) either a civil
          penalty assessed pursuant to section 502(c), (i) or (1) of ERISA or a
          tax imposed pursuant to Chapter 43 of Subtitle D of the Code or (ii)
          breach of fiduciary duty liability damages under section 409 of ERISA.

               No Plan (other than a defined contribution plan) or any trust
          created under any such Plan has been terminated since September 2,
          1974. No liability to the PBGC in excess of $100,000 (other than for
          the payment of current premiums which are not past due) by the
          Borrower or any ERISA Affiliate has been or is expected by the
          Borrower or any ERISA Affiliate to be incurred with respect to any
          Plan. No ERISA Event with respect to any Plan has occurred which could
          reasonably be expected to result in liabilities of $100,000 or more.

               Full payment when due has been made of all amounts which the
          Borrower or any ERISA Affiliate is required under the terms of each
          Plan or applicable law to have paid as contributions to such Plan, and
          no accumulated funding deficiency in an amount of $100,000 or more (as
          defined in section 302 of ERISA and section 412 of the Code), whether
          or not waived, exists with respect to any Plan.

               The actuarial present value of the benefit liabilities under each
          Plan which is subject to Title IV of ERISA does not, as of the end of
          the Borrower's most recently ended fiscal year, exceed the current
          value of the assets (computed on a plan termination basis in
          accordance with Title IV of ERISA) of such Plan allocable to such
          benefit liabilities by $100,000 or more. The term "actuarial present
          value of the benefit liabilities" shall have the meaning specified in
          section 4041 of ERISA.

                                       30
<PAGE>

               None of the Borrower or any ERISA Affiliate sponsors, maintains,
          or contributes to an employee welfare benefit plan, as defined in
          section 3(1) of ERISA, including, without limitation, any such plan
          maintained to provide benefits to former employees of such entities,
          that may not be terminated by the Borrower or any ERISA Affiliate in
          its sole discretion at any time without any material liability.

               None of the Borrower or any ERISA Affiliate sponsors, maintains
          or contributes to, or has at any time in the preceding six calendar
          years, sponsored, maintained or contributed to, any Multiemployer
          Plan.

               None of the Borrower or any ERISA Affiliate is required to
          provide security under section 401(a)(29) of the Code due to a Plan
          amendment that results in an increase in current liability for the
          Plan.

          Section 7.09 TAXES. Except as set out in Schedule 7.09, the Borrower
has filed all United States Federal income tax returns and all other tax returns
which are required to be filed by it and has paid all material taxes due
pursuant to such returns or pursuant to any assessment received by the Borrower,
except for any taxes which are being contested in good faith and by proper
proceedings and against which adequate reserves are being maintained. The
charges, accruals and reserves on the books of the Borrower in respect of taxes
and other governmental charges are, in the opinion of the Borrower, adequate. No
tax lien has been filed and, to the knowledge of the Borrower, no claim is being
asserted with respect to any such tax, fee or other charge, except for any
taxes, fees or other charges which are being contested in good faith and by
proper proceedings and against which adequate reserves are being maintained.

          Section 7.10 TITLES, ETC.

               (a) Subject to the matters set out in Schedule 7.10, each of the
          Borrower and the Subsidiaries has good and defensible title to (i) the
          Oil and Gas Properties that are both evaluated (A) in the most
          recently delivered Reserve Report and (B) described in a Standard
          Mortgage, free and clear of all Liens except Liens permitted by
          Section 9.02, and (ii) to the best of Borrower's knowledge, the
          balance of Borrower's material (individually or in the aggregate) Oil
          and Gas Properties (and/or those of the Subsidiaries) that are
          described in any other Mortgage or that are otherwise evaluated in the
          most recently delivered Reserve Report, free and clear (to the best of
          Borrower's knowledge) of all Liens except Liens permitted by Section
          9.02. Except for immaterial divergences, after giving full effect to
          the Excepted Liens and the matters set forth in Schedule 7.10, the
          Borrower owns the net interests in production attributable to the
          Hydrocarbon Interests that are both (A) evaluated in the most recently
          delivered Reserve Report and (b) reflected in a Standard Mortgage, and
          the ownership of such Hydrocarbon Interests shall not in any material
          respect obligate the Borrower to bear the costs and expenses relating
          to the maintenance, development and operations of each such
          Hydrocarbon Interest in an amount in excess of the working interest of
          such Hydrocarbon Interest set forth in a Standard Mortgage (without a
          corresponding increase in net revenue interest). The Borrower does not
          believe, based upon

                                      31
<PAGE>

          information in its possession, that its most recently delivered
          Reserve Report materially overstates its oil and gas reserves, bearing
          in mind that reserves are evaluated based upon estimates and
          assumptions with respect to which reasonable minds of competent
          reserve engineers may differ.

               (b) All leases and agreements necessary for the conduct of the
          business of the Borrower and the Subsidiaries are valid and
          subsisting, in full force and effect and there exists no default or
          event or circumstance which with the giving of notice or the passage
          of time or both would give rise to a default under any such lease or
          leases, which would affect in any material respect the conduct of the
          business of the Borrower and the Subsidiaries.

               (c) The Properties presently owned, leased or licensed by the
          Borrower and the Subsidiaries, including, without limitation, all
          easements and rights of way, include all Properties necessary to
          permit the Borrower and the Subsidiaries to conduct their business in
          all material respects in the same manner as its business has been
          conducted prior to the Closing Date.

               (d) All of the Properties of the Borrower and the Subsidiaries
          which are reasonably necessary for the operation of their business are
          in good working condition in all material respects and are maintained
          in accordance with prudent business standards.

          Section 7.11 NO MATERIAL MISSTATEMENTS. Taken as a whole, the written
information, statements, exhibits, certificates, documents and reports furnished
to SCI by the Borrower or any Guarantor in connection with the negotiation of
this Agreement do not contain any material misstatement of fact or omit to state
a material fact or any fact necessary to make the statements contained therein
not materially misleading in the light of the circumstances in which made and
with respect to the Borrower or any Guarantor. As of the Closing Date, there is
no fact peculiar to the Borrower or Guarantor which has a Material Adverse
Effect or in the future is reasonably likely to have (so far as the Borrower can
now foresee) a Material Adverse Effect and which has not been set forth in this
Agreement or the other documents, certificates and statements furnished to SCI
by or on behalf of the Borrower or any Guarantor prior to, or on, the Closing
Date in connection with the transactions contemplated hereby or the Senior Loan
Documents.

          Section 7.12 INVESTMENT COMPANY ACT. Neither the Borrower nor any
Subsidiary is an "investment company" or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended.

          Section 7.13 PUBLIC UTILITY HOLDING COMPANY ACT. Neither the Borrower
nor any Subsidiary is a "holding company," or a "subsidiary company" of a
"holding company," or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company," or a "public utility" within the meaning of the
Public Utility Holding Company Act of 1935, as amended.

                                      32
<PAGE>

          Section 7.14 SUBSIDIARIES. Except as set forth on Schedule 7.14 or as
allowed by Section 9.16, the Borrower has no Subsidiaries.

          Section 7.15 LOCATION OF BUSINESS AND OFFICES. As of the Closing Date,
the Borrower's principal place of business and chief executive offices are
located at the address stated on the signature page of this Agreement. The
principal place of business and chief executive office of each Subsidiary are
located at the addresses stated on Schedule 7.14.

          Section 7.16 DEFAULTS. The Borrower is not in default nor has any
event or circumstance occurred which, but for the expiration of any applicable
grace period or the giving of notice, or both, would constitute a default under
any material agreement or instrument to which the Borrower is a party or by
which the Borrower is bound which default would have a Material Adverse Effect.
No Default hereunder or under the Senior Credit Agreement has occurred and is
continuing or will result from the execution, delivery and performance of this
Agreement and the other Loan Documents.

          Section 7.17 ENVIRONMENTAL MATTERS. Except as provided in Schedule
7.17 or for matters which are more likely than not to not to have a Material
Adverse Effect (or with respect to (c), (d) and (e) below, where the failure to
take such actions is more likely than not to not have a Material Adverse
Effect):

               (a) Neither any Property of Brigham Exploration or any of its
          Subsidiaries nor the operations conducted thereon violate any order or
          requirement of any court or Governmental Authority or any
          Environmental Laws;

               (b) Without limitation of clause (a) above, no Property of
          Brigham Exploration or any of its Subsidiaries nor the operations
          currently conducted thereon or, to the best knowledge of the Borrower,
          by any prior owner or operator of such Property or operation, are in
          violation of or subject to any existing, pending or threatened action,
          suit, investigation, inquiry or proceeding by or before any court or
          Governmental Authority or to any remedial obligations under
          Environmental Laws;

               (c) All notices, permits, licenses or similar authorizations, if
          any, required to be obtained or filed by Brigham Exploration or any of
          its Subsidiaries in connection with the operation or use of any and
          all Property of Brigham Exploration and each of its Subsidiaries,
          including without limitation present, or to the best of Borrower's
          knowledge, past treatment, storage, disposal or release of a hazardous
          substance or solid waste into the environment, have been duly obtained
          or filed, and Brigham Exploration and each Subsidiary thereof are in
          compliance with the terms and conditions of all such notices, permits,
          licenses and similar authorizations;

               (d) All hazardous substances, solid waste, and oil and gas
          exploration and production wastes, if any, generated at any and all
          Property of Brigham Exploration and each of its Subsidiaries have in
          the past, during the tenure of ownership of Brigham Exploration and
          its Subsidiaries and to the best of

                                       33
<PAGE>

          Borrower's knowledge, prior thereto, been transported, treated and
          disposed of in accordance with Environmental Laws and so as not to
          pose an imminent and substantial endangerment to public health or
          welfare or the environment, and, to the best knowledge of the
          Borrower, all such transport carriers and treatment and disposal
          facilities have been and are operating in compliance with
          Environmental Laws and so as not to pose an imminent and substantial
          endangerment to public health or welfare or the environment, and are
          not the subject of any existing, pending or threatened action,
          investigation or inquiry by any Governmental Authority in connection
          with any Environmental Laws;

               (e) The Borrower has taken all steps reasonably necessary to
          determine and has determined that no hazardous substances, solid
          waste, or oil and gas exploration and production wastes, have been
          disposed of or otherwise released and there has been no threatened
          release of any hazardous substances on or to any Property of Brigham
          Exploration or any of its Subsidiaries except in compliance with
          Environmental Laws and so as not to pose an imminent and substantial
          endangerment to public health or welfare or the environment;

               (f) To the extent applicable, all Property of Brigham Exploration
          and each of its Subsidiaries currently satisfies all design,
          operation, and equipment requirements imposed by the OPA or scheduled
          as of the Closing Date to be imposed by OPA during the term of this
          Agreement, and the Borrower does not have any reason to believe that
          such Property, to the extent subject to OPA, will not be able to
          maintain compliance with the OPA requirements during the term of this
          Agreement; and

               (g) Neither Brigham Exploration nor any of its Subsidiaries has
          any known contingent liability in connection with any release or
          threatened release of any oil, hazardous substance or solid waste into
          the environment.

          Section 7.18 COMPLIANCE WITH THE LAW. Neither the Borrower nor any
Subsidiary has violated any Governmental Requirement or failed to obtain any
license, permit, franchise or other governmental authorization necessary for the
ownership of any of its Properties or the conduct of its business, which
violation or failure would have (in the event such violation or failure were
asserted by any Person through appropriate action) a Material Adverse Effect.
Except for such acts or failures to act as would not have a Material Adverse
Effect, the Oil and Gas Properties (and properties unitized therewith) have been
maintained, operated and developed in a good and workmanlike manner and in
conformity with all applicable laws and all rules, regulations and orders of all
duly constituted authorities having jurisdiction and in conformity with the
provisions of all leases, subleases or other contracts comprising a part of the
Hydrocarbon Interests and other contracts and agreements forming a part of the
Oil and Gas Properties; specifically in this connection, but subject to the
Material Adverse Effect qualification set forth above, (i) after the Closing
Date, no Oil and Gas Property is subject to having allowable production reduced
below the full and regular allowable (including the maximum permissible
tolerance) because of any overproduction (whether or not the same was
permissible at the time) prior to the Closing Date and (ii) none of the wells
comprising a part of the Oil and Gas Properties (or properties unitized
therewith) are deviated from the vertical more

                                       34
<PAGE>

than the maximum permitted by applicable laws, regulations, rules and orders,
and such wells are, in fact, bottomed under and are producing from, and the well
bores are wholly within, the Oil and Gas Properties (or in the case of wells
located on properties unitized therewith, such unitized properties).

          Section 7.19 INSURANCE. Schedule 7.19 attached hereto contains an
accurate and complete description of all material policies of fire, liability,
workmen's compensation and other forms of insurance owned or held by the
Borrower and each Subsidiary as of the Closing Date. Schedule 7.19 shall be
updated by the Borrower as appropriate from time to time and the representations
in this Section 7.19 shall apply to such updated Schedules. All such policies
are in full force and effect, all premiums with respect thereto covering all
periods up to and including the Closing Date have been paid, and no notice of
cancellation or termination has been received with respect to any such policy.
Such policies are sufficient for compliance with all requirements of law and of
all agreements to which the Borrower or any Subsidiary is a party; are valid,
outstanding and enforceable policies; provide adequate insurance coverage in at
least such amounts and against at least such risks (but including in any event
public liability) as are usually insured against in the same general area by
companies engaged in the same or a similar business for the assets and
operations of the Borrower and each Subsidiary; will remain in full force and
effect through the respective dates set forth in Schedule 7.19 without the
payment of additional premiums; and will not in any way be affected by, or
terminate or lapse by reason of, the transactions contemplated by this
Agreement. Schedule 7.19 identifies all material risks, if any, which the
General Partner of the Borrower, the Subsidiaries and their respective Board of
Directors or officers have designated as being self insured. Neither the
Borrower nor any Subsidiary has been refused any insurance with respect to its
assets or operations, nor has its coverage been limited below usual and
customary policy limits, by an insurance carrier to which it has applied for any
such insurance or with which it has carried insurance during the last three
years.

          Section 7.20 HEDGING AGREEMENTS. Schedule 7.20 sets forth, as of the
Closing Date, a true and complete list of all Hedging Agreements (including
commodity price swap agreements, forward agreements or contracts of sale which
provide for prepayment for deferred shipment or delivery of oil, gas or other
commodities) of the Borrower and each Subsidiary, the material terms thereof
(including the type, term, effective date, termination date and notional amounts
or volumes), the net mark to market value thereof, all credit support agreements
relating thereto (including any margin required or supplied), and the
counterparty to each such agreement.

          Section 7.21 RESTRICTION ON LIENS. Neither the Borrower nor any
Subsidiary is a party to or subject to any agreement or arrangement (other than
the Loan Documents, the Senior Loan Documents, the Indenture, and any other
documents permitted under Section 9.02(f)), or subject to any order, judgment,
writ or decree, which either restricts or purports to restrict its ability to
grant Liens to other Persons on or in respect of their respective assets or
Properties.

          Section 7.22 MATERIAL AGREEMENTS. Set forth on Schedule 7.22 hereto is
a complete and correct list of all material agreements, leases, indentures,
purchase agreements, obligations in respect of letters of credit, guarantees,
joint venture agreements, and other instruments in effect or to be in effect as
of the Closing Date (other than Hedging Agreements)

                                       35
<PAGE>

providing for, evidencing, securing or otherwise relating to any material Debt
of the Borrower or any Subsidiary, and all obligations of the Borrower or any
Subsidiary to issuers of surety or appeal bonds (excluding operator's bonds,
plugging and abandonment bonds, and similar surety obligations obtained in the
ordinary course of business) issued for account of the Borrower or any such
Subsidiary, and such list correctly sets forth the names of the debtor or lessee
and creditor or lessor with respect to the Debt or lease obligations outstanding
or to be outstanding and the property subject to any Lien securing such Debt or
lease obligation.

          Section 7.23 GAS IMBALANCES. As of the Closing Date, except as set
forth in the most recent Reserve Report furnished to Agent or on Schedule 7.23
or on the most recent certificate delivered pursuant to Section 8.07(b), on a
net basis there are no gas imbalances, take or pay or other prepayments with
respect to the Borrower's or any Subsidiary's Hydrocarbon Interests which would
require the Borrower or such Subsidiary to deliver five percent (5%) or more of
the monthly production from the Borrower's and its Subsidiaries' Hydrocarbons
produced on a monthly basis from the Hydrocarbon Interests, at some future time
without then or thereafter receiving full payment therefor.

          Section 7.24 PARTNERSHIP AGREEMENT. The Partnership Agreement has not
been terminated, is in full force and effect as of the date hereof and no
default has occurred and is in continuance thereunder which would have a
Material Adverse Effect.

                                   ARTICLE 8

                              AFFIRMATIVE COVENANTS

          The Borrower covenants and agrees that, so long as any of the
Commitments are in effect and until payment in full of all Indebtedness
hereunder, all interest thereon and all other amounts payable by the Borrower
hereunder:

          Section 8.01 FINANCIAL STATEMENTS AND OTHER REPORTS. The Borrower
shall deliver, or shall cause to be delivered, to the Agent with sufficient
copies of each for the Lenders:

               (a) ANNUAL FINANCIAL STATEMENTS. As soon as available and in any
          event within 90 days after the end of each fiscal year of Brigham
          Exploration, the audited consolidated statements of income,
          stockholders' equity, changes in financial position and cash flow of
          Brigham Exploration and its Consolidated Subsidiaries for such fiscal
          year, and the related consolidated and unaudited consolidating balance
          sheets of Brigham Exploration and its Consolidated Subsidiaries as at
          the end of such fiscal year, and setting forth in each case in
          comparative form the corresponding figures for the preceding fiscal
          year, and accompanied by the related opinion of independent public
          accountants of recognized national standing acceptable to the Agent
          which opinion shall state that said financial statements fairly
          present the consolidated financial condition and results of operations
          of Brigham Exploration and its Consolidated Subsidiaries as at the end
          of, and for, such fiscal year and that such financial statements have
          been prepared in accordance with GAAP except for such changes

                                       36
<PAGE>

          in such principles with which the independent public accountants shall
          have concurred and such opinion shall not contain a "going concern" or
          like qualification or exception.

               (b) QUARTERLY FINANCIAL STATEMENTS. As soon as available and in
          any event within 60 days after the end of each of the first three
          fiscal quarterly periods of each fiscal year of Brigham Exploration,
          consolidated statements of income, stockholders' equity, changes in
          financial position and cash flow of Brigham Exploration and its
          Consolidated Subsidiaries for such period and for the period from the
          beginning of the respective fiscal year to the end of such period, and
          the related consolidated and consolidating balance sheets as at the
          end of such period, and setting forth in each case in comparative form
          the corresponding figures for the corresponding period in the
          preceding fiscal year, accompanied by the certificate of a Responsible
          Officer, which certificate shall state that said financial statements
          fairly present the consolidated financial condition and results of
          operations of Brigham Exploration and its Consolidated Subsidiaries in
          accordance with GAAP, as at the end of, and for, such period (subject
          to normal year-end audit adjustments).

               (c) MONTHLY FINANCIAL STATEMENTS. As soon as available and in any
          event within forty-five (45) days after the end of each calendar month
          that is not also the end of one of Brigham Exploration's first three
          fiscal quarterly periods or of Brigham Exploration's fiscal year,
          consolidated statements of income and changes in financial position of
          Brigham Exploration and its Consolidated Subsidiaries for such period
          and for the period from the beginning of the respective fiscal year to
          the end of such period, and the related consolidated balance sheets as
          at the end of such period and beginning statements setting forth in
          each case in comparative form the corresponding figures for the
          corresponding period in the preceding fiscal year, accompanied by the
          certificate of a Responsible Officer, which certificate shall state
          that such financial statements fairly present the consolidated
          financial condition and results of operations of Brigham Exploration
          and its Consolidated Subsidiaries in accordance with GAAP, as at the
          end of, and for, such period (subject to normal year-end audit
          adjustments).

               (d) NOTICE OF DEFAULT. Promptly after the Borrower knows that any
          Default or any Material Adverse Effect has occurred, a notice of such
          Default or Material Adverse Effect, describing the same in reasonable
          detail and the action the Borrower proposes to take with respect
          thereto.

               (e) OTHER ACCOUNTING REPORTS. Promptly upon receipt thereof, a
          copy of each other report or letter (excluding routine correspondence)
          submitted to the Borrower or Brigham Exploration by independent
          accountants in connection with any annual, interim or special audit
          made by them of the books of the Borrower or Brigham Exploration, and
          a copy of any response by the Borrower or Brigham Exploration to such
          letter or report.

                                       37
<PAGE>

               (f) SEC FILINGS, ETC. Promptly, upon its becoming available, each
          financial statement, report, notice or proxy statement sent by Brigham
          Exploration to stockholders generally and each regular or periodic
          report and any registration statement, prospectus or written
          communication (other than transmittal letters) in respect thereof
          filed by Brigham Exploration with or received by Brigham Exploration
          in connection therewith from any securities exchange or the SEC or any
          successor agency.

               (g) NOTICES UNDER OTHER LOAN AGREEMENTS. Promptly after the
          furnishing thereof, copies of any statement, report or notice
          furnished to any Person pursuant to the terms of any indenture, loan
          or credit or other similar agreement including, but not limited to,
          any statement, report or notice furnished to any Person pursuant to
          the Senior Credit Agreement, other than this Agreement and not
          otherwise required to be furnished to the Lenders pursuant to any
          other provision of this Section 8.01.

               (h) OTHER MATTERS. Subject to any applicable restrictions on
          disclosure, from time to time such other information regarding the
          business, affairs or financial condition of the Borrower or Brigham
          Exploration (including, without limitation, any Plan or Multiemployer
          Plan and any reports or other information required to be filed under
          ERISA) as any Lender or the Agent may reasonably request.

               (i) ANNUAL BUDGETS. On or before January 31 of each year, a
          one-year financial projection for Brigham Exploration and its
          Subsidiaries in form acceptable to the Agent, which projection shall
          include revenues, expenses and capital expenditures.

               (j) MONTHLY OPERATING STATEMENTS. As soon as available and in any
          event within 30 days after the end of each month, monthly operating
          statements of the Borrower for the month preceding the month during
          which the written request was received, including, without limitation,
          production reports and general and administrative cost summaries by
          lease for its Oil and Gas Properties, which reports shall include
          quantities or volume of production, revenue, realized product prices,
          taxes, capital expenditures by category and lease operating costs
          which have accrued to the Borrower's accounts in such period, and such
          other information with respect thereto as the Agent may require.

               (k) WEEKLY CASH BUDGETS. For the period required under the Senior
          Credit Agreement, the Borrower will cause Brigham Exploration to
          deliver weekly cash budgets reasonably satisfactory to the Agent and
          each Lender and weekly cash flow statements reasonably satisfactory to
          the Agent and each Lender based on such form, with variance analysis
          to budget (including accounts receivables and accounts payables
          reporting) not later than the Friday following the week to which such
          budgets and statements relate.

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<PAGE>

               (l) CAPEX PLANS. A CAPEX Plan, delivered simultaneously with each
          of the Reserve Reports to be delivered in March and September of each
          year; the first such CAPEX Plan, to be submitted on the Closing Date,
          shall be for the twelve month period beginning September 1, 2000, and
          ending August 31, 2000, and each subsequent CAPEX Plan shall cover the
          next succeeding twelve-month period. Each such CAPEX Plan shall
          include a blended risk profile that does not deviate materially from
          the risk profile of the CAPEX Plan required under the Senior Credit
          Agreement for so long as the Senior Lenders require a CAPEX Plan and,
          thereafter, from that submitted on the Closing Date.

The Borrower will furnish to the Agent, at the time it furnishes each set of
financial statements pursuant to paragraph (a) or (b) above, a certificate
substantially in the form of Exhibit C-2 hereto executed by a Responsible
Officer (i) certifying as to the matters set forth therein and stating that no
Default has occurred and is continuing (or, if any Default has occurred and is
continuing, describing the same in reasonable detail), (ii) setting forth in
reasonable detail the computations necessary to determine whether Brigham
Exploration is in compliance with Sections 5.2(q), (r) and (s) of its Guaranty
Agreement as of the end of the respective fiscal quarter or fiscal year, and
(iii) certifying that said financial statements fairly present the consolidated
and consolidating financial condition and consolidated results of operations in
accordance with GAAP, as at the end of, and for, such period (subject to normal
year-end audit adjustments).

          Section 8.02 LITIGATION. The Borrower shall promptly give to the Agent
notice of: (i) all legal or arbitral proceedings, and of all proceedings before
any Governmental Authority involving the Borrower or any Guarantor, except
proceedings which, if adversely determined within any reasonable range of loss,
would not have a Material Adverse Effect, and (ii) of any material litigation or
material proceeding against the Borrower or any Guarantor in which the amount
involved is not covered in full by insurance (subject to normal and customary
deductibles), or in which injunctive or similar relief is sought. The Borrower
will, and will cause each of the Guarantors to, promptly notify the Agent and
each of the Lenders of any claim, judgment, Lien or other encumbrance affecting
any Property of the Borrower or any Guarantor if the value of the claim,
judgment, Lien, or other encumbrance affecting such Property shall exceed
$1,000,000.

          Section 8.03 MAINTENANCE, ETC.

               (a) The Borrower shall and shall cause each Subsidiary to:
          preserve and maintain its corporate existence and all of its material
          rights, privileges and franchises; keep books of record and account in
          which full, true and correct entries will be made of all dealings or
          transactions in relation to its business and activities; comply with
          all Governmental Requirements if failure to comply with such
          requirements will have a Material Adverse Effect; pay and discharge
          all taxes, assessments and governmental charges or levies imposed on
          it or on its income or profits or on any of its Property prior to the
          date on which penalties attach thereto, except for any such tax,
          assessment, charge or levy the payment of which is being contested in
          good faith and by proper proceedings and against which adequate
          reserves are being maintained; upon reasonable notice, permit

                                       39
<PAGE>

          representatives of the Agent or any Lender (accompanied by the Agent),
          during normal business hours, to examine, copy and make extracts from
          its financial books and records, to inspect its Properties, and to
          discuss its business and affairs with its officers, all to the extent
          reasonably requested by such Lender or the Agent (as the case may be);
          and keep, or cause to be kept, insured by financially sound and
          reputable insurers all Property of a character usually insured by
          Persons engaged in the same or similar business similarly situated
          against loss or damage of the kinds and in the amounts customarily
          insured against by such Persons and carry such other insurance as is
          usually carried by such Persons including, without limitation,
          environmental risk insurance to the extent reasonably available.

               (b) Contemporaneously with the delivery of the financial
          statements required by Section 8.01(a) to be delivered for each year,
          the Borrower will furnish or cause to be furnished to the Agent and
          the Lenders a certificate of insurance coverage from the insurer in
          form and substance satisfactory to the Agent and, if requested by the
          Agent, will furnish the Agent and the Lenders copies of the applicable
          policies.

               (c) The Borrower will and will cause each Subsidiary to operate
          its Oil and Gas Properties or cause such Oil and Gas Properties to be
          operated in a good and workmanlike manner in accordance with the
          practices of the industry and in compliance in all material respects
          with all applicable contracts and agreements and in compliance in all
          material respects with all Governmental Requirements.

               (d) The Borrower will and will cause each Subsidiary to, at its
          own expense, do or cause to be done (to the extent it has the power to
          do so) all things reasonably necessary to preserve and keep in good
          repair, working order and efficiency all of its Oil and Gas Properties
          and other material Properties including, without limitation, all
          equipment, machinery and facilities, and from time to time will make
          all the reasonably necessary repairs, renewals and replacements so
          that at all times the state and condition of its Oil and Gas
          Properties and other material Properties will be fully preserved and
          maintained, except to the extent a portion of such Properties is not
          capable of producing Hydrocarbons in economically reasonable amounts.
          The Borrower will and will cause each Subsidiary to promptly: (i) pay
          and discharge, or make reasonable and customary efforts to cause to be
          paid and discharged, all delay rentals, royalties, expenses and
          indebtedness accruing under the leases or other agreements affecting
          or pertaining to its Oil and Gas Properties, (ii) perform or make
          reasonable and customary efforts to cause to be performed, in
          accordance with industry standards, the obligations required by each
          and all of the assignments, deeds, leases, sub-leases, contracts and
          agreements affecting its interests in its Oil and Gas Properties and
          other material Properties, (iii) will and will cause each Subsidiary
          to do all other things necessary to keep unimpaired, except for Liens
          described in Section 9.02, its rights with respect to its Oil and Gas
          Properties and other material Properties and prevent any forfeiture
          thereof or a default thereunder, except to the extent a portion of
          such Properties is no longer capable of producing Hydrocarbons in

                                       40
<PAGE>

          economically reasonable amounts. The Borrower will and will cause each
          Subsidiary to operate its Oil and Gas Properties and other material
          Properties or cause or make reasonable and customary efforts to cause
          such Oil and Gas Properties and other material Properties to be
          operated in a good and workmanlike manner in accordance with the
          practices of the industry and in compliance with all applicable
          contracts and agreements and in compliance in all material respects
          with all Governmental Requirements. The covenants contained in this
          Section 8.03(d) shall not apply to insignificant Properties unless a
          failure of such covenant could have a Material Adverse Effect.

               (e) The Borrower will provide to the Agent from time to time upon
          request by the Agent the certificate of a Responsible Officer of the
          Borrower stating that, except as disclosed in a schedule thereto, the
          Borrower has not received written notice that any mechanics' liens
          have been filed or will be filed on the Mortgaged Properties; provided
          that mere receipt of an invoice for services rendered shall not
          constitute written notice that a mechanics' lien will be filed.

          Section 8.04 ENVIRONMENTAL MATTERS.

               (a) To the extent that a reasonably prudent owner or operator
          would do so under the same or similar circumstances, the Borrower will
          and will cause each Subsidiary to establish and implement such
          procedures as may be reasonably necessary to periodically determine
          and assure that any failure of the following does not have a Material
          Adverse Effect: (i) all Property of the Borrower and the Subsidiaries
          and the operations conducted thereon and other activities of the
          Borrower and the Subsidiaries are in compliance with and do not
          violate the requirements of any Environmental Laws, (ii) no oil,
          hazardous substances or solid wastes are disposed of or otherwise
          released on o r to any Property owned by any such party except in
          compliance with Environmental Laws, (iii) no hazardous substance will
          be released on or to any such Property in a quantity equal to or
          exceeding that quantity which requires reporting pursuant to Section
          103 of CERCLA, and (iv) no oil, oil and gas exploration and production
          wastes or hazardous substance is released on or to any such Property
          so as to pose an imminent and substantial endangerment to public
          health or welfare or the environment.

               (b) The Borrower will promptly notify the Agent and the Lenders
          in writing of any threatened action, investigation or inquiry by any
          Governmental Authority of which the Borrower has knowledge in
          connection with any Environmental Laws with respect to the Property of
          the Borrower or any Subsidiary, excluding routine testing, compliance
          and corrective action.

          Section 8.05 FURTHER ASSURANCES. The Borrower will and will cause each
Guarantor to cure promptly any defects in the creation and issuance of the Notes
and the execution and delivery of the Loan Documents. The Borrower at its
expense will and will cause each Guarantor to promptly execute and deliver to
the Agent upon request all such other documents, agreements and instruments to
comply with or accomplish the covenants and

                                      41
<PAGE>

agreements of the Borrower or any Guarantor, as the case may be, in the Loan
Documents, or to further evidence and more fully describe the collateral
intended as security for the Notes, or to correct any omissions in the Loan
Documents, or to state more fully the security obligations set out herein or in
any of the Loan Documents, or to perfect, protect or preserve any Liens created
pursuant to any of the Loan Documents, or to make any recordings, to file any
notices or obtain any consents, all as may be necessary or appropriate in
connection therewith.

          Section 8.06 PERFORMANCE OF OBLIGATIONS. The Borrower will pay the
Notes according to the reading, tenor and effect thereof; and the Borrower will
and will cause each Guarantor to do and perform every act and discharge all of
the obligations to be performed and discharged by them under the Loan Documents,
at the time or times and in the manner specified.

          Section 8.07 ENGINEERING REPORTS.

               (a) Not later than March 30 and September 30 of each year, the
          Borrower shall furnish to the Agent and the Lenders a Reserve Report
          as of the preceding December 31 and June 30, respectively. The Reserve
          Report to be furnished in March of each year shall be prepared by
          certified independent petroleum engineers or other independent
          petroleum consultant(s) acceptable to the Agent and the Reserve
          Reports to be furnished in September of each year shall be prepared by
          or under the supervision of the chief engineer or Vice President of
          Operations of the Borrower who shall certify such Reserve Report to
          have been prepared in accordance with the procedures used in the
          immediately preceding March Reserve Report. At Borrower's option, the
          Reserve Report to be furnished in September of each year may instead
          consist of a report from the independent petroleum engineers referred
          to above on any new wells and a roll-forward by Borrower on any wells
          previously reported in the Reserve Report described in the immediately
          preceding March.

               (b) In the event of an unscheduled Borrowing Base
          redetermination, under the Senior Credit Agreement, the Borrower shall
          furnish to the Agent and the Lenders a copy of any Reserve Report that
          is furnished to the Senior Agent.

               (c) With the delivery of each Reserve Report, the Borrower shall
          provide to the Agent and the Lenders:

                    (A) a certificate from a Responsible Officer certifying
               that, to the best of his knowledge and in all material respects:
               (i) the most recently delivered Reserve Report does not in the
               belief of such officer and based upon information in the
               Borrower's possession, materially overstate the oil and gas
               reserves of the Borrower and the Subsidiaries as a whole bearing
               in mind that reserves are evaluated based upon estimates and
               assumptions with respect to which reasonable minds of competent
               engineers may differ, (ii) except as set forth in such Reserve
               Report or on an exhibit to the certificate, on a net basis there
               are no gas imbalances, take or pay or other prepayments with
               respect to its Oil and Gas Properties evaluated in such Reserve
               Report which would violate Section 9.18, (iii) none of its

                                       42
<PAGE>

               proved Hydrocarbon Interests have been sold since the date of the
               last Borrowing Base determination except as set forth on an
               exhibit to the certificate, which certificate shall list all of
               its proved Hydrocarbon Interests sold and in such detail as
               reasonably required by the Majority Lenders, (iv) attached to the
               certificate is a list of its proved Hydrocarbon Interests added
               to and deleted from the immediately prior Reserve Report and a
               list showing any change in working interest or net revenue
               interest in its Hydrocarbon Interests occurring, (v) at the
               Agent's request, attached to the certificate is a list of all
               Persons disbursing proceeds to the Borrower from its Oil and Gas
               Properties and (vi) except as set forth on a schedule attached to
               the certificate all of proved Hydrocarbon Interests evaluated by
               such Reserve Report are Mortgaged Property; and

                    (B) a certificate from a Responsible Officer certifying
               that, to the best of his knowledge and in all material respects
               (i) the representations of the Borrower in Section 7.10 are true
               and correct and apply to the Hydrocarbon Interests evaluated in
               the Reserve Report that are described in a Standard Mortgage and
               (ii) the Borrower has, with respect to those material Hydrocarbon
               Interests that are evaluated in the most recently delivered
               Reserve Report, but that are not covered by a Standard Mortgage,
               conducted overall title due diligence that, in all material
               respects, equals or exceeds industry standards given the
               applicable facts and circumstances.

          Section 8.08 RESERVED.

          Section 8.09 ADDITIONAL COLLATERAL.

               (a) The Borrower will grant and will cause each of its
          Subsidiaries to grant to the Agent as security for the Indebtedness a
          perfected Lien on the Borrower's or such Subsidiary's interest in any
          Oil and Gas Properties that are (i) acquired after the date hereof at
          the cash acquisition cost to the Borrower or such Subsidiary equal to
          or exceeding $1,000,000, and (ii) do not constitute Proved Reserves,
          which Lien will be created and perfected by and in accordance with the
          provisions of deeds of trust, security agreements and financing
          statements, or other Loan Documents, all in form substantially the
          same as the New Mortgage (subject to such changes as are necessary as
          a result of, to reflect and/or to account for changes in applicable
          law) and in sufficient executed (and acknowledged where necessary or
          appropriate) counterparts for recording purposes.

               (b) The Borrower will grant and will cause each of its
          Subsidiaries to grant to the Agent as security for the Indebtedness a
          Lien interest (subject only to Excepted Liens and the matters set
          forth on Schedule 7.10 hereto) on the Borrower's or such Subsidiary's
          interest in any Oil and Gas Properties identified after the Closing
          Date as containing Proved Reserves, which Lien will be created and
          perfected by and in accordance with the provisions of deeds of trust,
          security

                                       43
<PAGE>

          agreements and financing statements, or other Loan Documents, all in
          form substantially the same as the Standard Mortgage (subject to such
          changes as are necessary as a result of, to reflect and/or to account
          for changes in applicable law) and in sufficient executed (and
          acknowledged where necessary or appropriate) counterparts for
          recording purposes.

               (c) Concurrently with the granting of the Lien or other action
          referred to in Section 8.09(b) above, the Borrower will provide to the
          Agent title information in form and substance satisfactory to the
          Agent in its sole discretion with respect to the Borrower's and its
          Subsidiaries' interests in such Oil and Gas Properties to the extent
          needed to cause the Agent to have received, together with title
          information previously delivered to the Agent, satisfactory title
          information on at least 90% of the value of the proved Hydrocarbon
          Interests evaluated by the most recent Reserve Report.

               (d) Also, promptly after the filing of any new Loan Document in
          any state, other than the New Mortgage and any other mortgage filed
          pursuant to subsection (a) of this Section 8.09 or any other mortgage
          substantially in the form of the New Mortgage, upon the reasonable
          request of the Agent, the Borrower will provide to the Agent an
          opinion addressed to the Agent for the benefit of the Lenders in form
          and substance reasonably satisfactory to the Agent in its sole
          discretion from counsel acceptable to Agent, stating that such Loan
          Document is valid, binding and enforceable in accordance with its
          terms and in legally sufficient form for such jurisdiction.

          Section 8.10 ERISA INFORMATION AND COMPLIANCE. The Borrower will
promptly furnish and will cause any ERISA Affiliate to promptly furnish to the
Agent with sufficient copies to the Lenders (i) if requested by the Agent
promptly after the filing thereof with the United States Secretary of Labor, the
Internal Revenue Service or the PBGC, copies of each annual and other report
with respect to each Plan or any trust created thereunder, (ii) immediately upon
becoming aware of the occurrence of any ERISA Event or of any "prohibited
transaction," as described in section 406 of ERISA or in section 4975 of the
Code, in connection with any Plan or any trust created thereunder, a written
notice signed by a Responsible Officer specifying the nature thereof, what
action the Borrower or the ERISA Affiliate is taking or proposes to take with
respect thereto, and, when known, any action taken or proposed by the Internal
Revenue Service, the Department of Labor or the PBGC with respect thereto, and
(iii) immediately upon receipt thereof, copies of any notice of the PBGC's
intention to terminate or to have a trustee appointed to administer any Plan.
With respect to each Plan (other than a Multiemployer Plan), the Borrower will,
and will cause each ERISA Affiliate to, (i) satisfy in full and in a timely
manner, without incurring any late payment or underpayment charge or penalty and
without giving rise to any lien, all of the contribution and funding
requirements of section 412 of the Code (determined without regard to
subsections (d), (e), (f) and (k) thereof) and of section 302 of ERISA
(determined without regard to sections 303, 304 and 306 of ERISA), and (ii) pay,
or cause to be paid, to the PBGC in a timely manner, without incurring any late
payment or underpayment charge or penalty, all premiums required pursuant to
sections 4006 and 4007 of ERISA.

                                       44
<PAGE>

          Section 8.11 SUBSIDIARY SECURITY. Should the Borrower create or
acquire any Subsidiary pursuant to Section 9.16 hereof it will promptly grant to
the Agent for the benefit of the Lenders a security interest and pledge of all
the capital stock of such Subsidiary in form and substance satisfactory to the
Agent, such security interest and pledge to be second to any such security
interest and pledge granted to secure the Senior Indebtedness and the Borrower
will cause such Subsidiary to enter into a guaranty of the Indebtedness in form
and substance satisfactory to the Agent, and such guaranty to be subordinate to
any similar guaranty guaranteeing the Senior Indebtedness. The delivery of such
security and guaranty shall be accompanied by such back up corporate authority
and opinions of counsel (addressed to the Agent as well as the Senior Agent) as
furnished to the Senior Agent, or as the Agent may reasonably request.

          Section 8.12 PAYMENT OF TRADE PAYABLES. The Borrower will pay and
cause all of its Subsidiaries to pay all of their Trade Payables now or
hereafter incurred within 60 days of the date the invoice is received by
Borrower, unless subject to legal offset or unless being contested in good faith
by appropriate proceedings and reserves adequate under GAAP shall have been
established therefor.

                                   ARTICLE 9

                               NEGATIVE COVENANTS

          The Borrower covenants and agrees that, so long as any of the
Commitments are in effect and until payment in full of the Indebtedness
hereunder, all interest thereon and all other amounts payable by the Borrower
hereunder, without the prior written consent of the Majority Lenders:

          Section 9.01 DEBT. Neither the Borrower nor any Subsidiary will incur,
create, assume or suffer to exist any Debt, except:

               (a) the Notes or other Indebtedness arising under the Loan
          Documents or any guaranty of or suretyship arrangement for the Notes
          or other Indebtedness arising under the Loan Documents;

               (b) Debt of the Borrower existing on the Closing Date which is
          reflected in the Financial Statements or is disclosed in Schedule
          9.01, and any renewals or extensions (but not increases) thereof;

               (c) accounts payable for the deferred purchase price of Property
          or services (other than Trade Payables) from time to time incurred in
          the ordinary course of business which, if greater than 60 days past
          the date the invoice is received by Borrower, are being contested in
          good faith by appropriate proceedings if reserves adequate under GAAP
          shall have been established therefor;

               (d) Debt owing to the Borrower or a Guarantor which is
          subordinated to the Indebtedness.

                                       45
<PAGE>

               (e) Debt of the Borrower under capital leases (as required to be
          reported on the financial statements of the Borrower pursuant to GAAP)
          not to exceed $2,000,000;

               (f) Debt of the Borrower under Hedging Agreements made with a
          Person that is made (i) with a Person that is, at the time such
          Hedging Agreement is made, either a Senior Lender or an Affiliate of a
          Senior Lender, or (ii) with another investment grade counterparty,
          provided that the aggregate notional amounts under all such Hedging
          Agreements do not exceed 80% of Borrower's anticipated oil and/or gas
          production to be produced during the term of such Hedging Agreements
          and that such Hedging Agreements are entered into as a part of its
          normal business operations as a risk management strategy and/or hedge
          against changes resulting from market conditions related to the
          Borrower's and its Subsidiaries' operations;

               (g) Debt associated with bonds or surety obligations required by
          Governmental Requirements in connection with the operation of the Oil
          and Gas Properties; and

               (h) Debt of the Borrower described on Schedule 9.01(h) and such
          other Debt of the Borrower related to the acquisition of software and
          licensing rights related thereto that does not exceed $100,000 at any
          one time outstanding.

               (i) The Senior Indebtedness and any other Debt arising under or
          otherwise in relation to the Senior Loan Documents.

          Section 9.02 LIENS. Neither the Borrower nor any Subsidiary will
create, incur, assume or permit to exist any Lien on any of its Properties (now
owned or hereafter acquired), except:

               (a) Liens securing the payment of any Indebtedness;

               (b) Excepted Liens;

               (c) Liens securing leases allowed under Section 9.01(e) but only
          on the Property under lease;

               (d) Liens disclosed on Schedule 9.02;

               (e) Any Permitted Encumbrances as described in any Mortgage.

               (f) Liens securing the Senior Indebtedness.

          Section 9.03 INVESTMENTS, LOANS AND ADVANCES. Neither the Borrower nor
any Subsidiary will make or permit to remain outstanding any loans or advances
to or investments in any Person, except that the foregoing restriction shall not
apply to:

                                      46
<PAGE>

               (a) investments, loans or advances reflected in the Financial
          Statements or which are disclosed to the Lenders in Schedule 9.03;

               (b) accounts receivable arising in the ordinary course of
          business;

               (c) for the Borrower only, direct obligations of the United
          States or any agency thereof, or obligations guaranteed by the United
          States or any agency thereof, in each case maturing within one year
          from the date of creation thereof;

               (d) for the Borrower only, commercial paper maturing within one
          year from the date of creation thereof rated in the highest grade by
          Standard & Poors Corporation or Moody's Investors Service, Inc.;

               (e) for the Borrower only, deposits maturing within one year from
          the date of creation thereof with, including certificates of deposit
          issued by, any Lender or any office located in the United States,
          Canada, or England of any other bank or trust company which is
          organized under the laws of the United States, Canada or England or
          any state or province thereof, has capital, surplus and undivided
          profits aggregating at least $100,000,000.00 (as of the date of such
          Lender's or bank or trust company's most recent financial reports) and
          has a short term deposit rating of no lower than A2 or P2, as such
          rating is set forth from time to time, by Standard & Poors Corporation
          or Moody's Investors Service, Inc., respectively;

               (f) for the Borrower only, deposits in money market funds
          investing exclusively in investments described in Section 9.03(c),
          9.03(d) or 9.03(e);

               (g) intentionally omitted;

               (h) investments by the Borrower in direct or indirect (through a
          Subsidiary to the extent permitted by Section 9.16 below) ownership
          interests in additional Oil and Gas Properties and gas gathering
          systems, gas plants, and similar assets related thereto;

               (i) investments, distributions, loans and advances by a
          Subsidiary to the Borrower; and

               (j) investments, distributions, loans and advances by the
          Borrower:

                    (a) to Brigham Exploration, Brigham, Inc., Brigham Holdings
               I, LLC and/or Brigham Holdings II, LLC to pay Federal or State
               taxes owing by any of them, payroll and payroll related taxes and
               other reasonable general and administrative expenses, or
               consisting of forgiveness of indebtedness; and

                    (b) to Subsidiaries which are Guarantors.

                                       47
<PAGE>

          Section 9.04 DIVIDENDS, DISTRIBUTIONS AND REDEMPTIONS. The Borrower
will not declare or pay any dividend, purchase, redeem or otherwise acquire for
value any of its stock now or hereafter outstanding, return any capital to its
stockholders or make any distribution of its assets to its partners, except as
permitted under Section 9.03(j)(a) above.

          Section 9.05 SALES AND LEASEBACKS. Neither the Borrower nor any
Subsidiary will enter into any arrangement, directly or indirectly, with any
Person whereby the Borrower or any Subsidiary shall sell or transfer any of its
Property, whether now owned or hereafter acquired, and whereby the Borrower or
any Subsidiary shall then or thereafter rent or lease as lessee such Property or
any part thereof or other Property which the Borrower or any Subsidiary intends
to use for substantially the same purpose or purposes as the Property sold or
transferred.

          Section 9.06 NATURE OF BUSINESS. Neither the Borrower nor any
Subsidiary will allow any material change to be made in the character of its
business as an independent oil and gas exploration and production company. Among
other things, a transfer of a substantial portion of Borrower's seismic data and
Hydrocarbon Interests which do not contain identified proved Hydrocarbon
reserves (other than transfers to participants of any participation interest
earned by them in the ordinary course of Borrower's business and abandonment of
prospects) shall be considered a material change in Borrower's business.

          Section 9.07 LIMITATION ON LEASES. Neither the Borrower nor any
Subsidiary will create, incur, assume or suffer to exist any obligation for the
payment of rent or hire of Property of any kind whatsoever (real or personal
including capital leases but excluding leases of Hydrocarbon Interests and the
equipment used thereon), under leases or lease agreements which would cause the
aggregate amount of all payments made by the Borrower and the Subsidiaries
pursuant to all such leases or lease agreements to exceed $2,000,000 in any
period of twelve consecutive calendar months during the life of such leases.

          Section 9.08 MERGERS, ETC.. The Borrower will not and will not permit
any Subsidiary to merge into or with or consolidate with any other Person or
sell, lease or otherwise dispose of (whether in one transaction or in a series
of transactions) all or substantially all of its Property or assets to any other
Person unless the Borrower, Brigham Exploration or any Guarantor whose Guaranty
Agreement is in full force and effect is the surviving entity and no Default
exists or will be created thereby.

          Section 9.09 PROCEEDS OF NOTES. The Borrower will not permit the
proceeds of the Notes to be used for any purpose other than those permitted by
Section 7.07. Neither the Borrower nor any Person acting on behalf of the
Borrower has taken or will take any action which might cause any of the Loan
Documents to violate Regulation U or X or any other regulation of the Board of
Governors of the Federal Reserve System or to violate Section 7 of the
Securities Exchange Act of 1934 or any rule or regulation thereunder, in each
case as now in effect or as the same may hereinafter be in effect.

          Section 9.10 ERISA COMPLIANCE. The Borrower will not at any time:

               (a) Engage in, or permit any ERISA Affiliate to engage in, any
          transaction in connection with which the Borrower or any ERISA
          Affiliate could be subjected

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          to either a civil penalty assessed pursuant to section 502(c), (i) or
          (1) of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code
          in excess of $100,000;

               (b) Terminate, or permit any ERISA Affiliate to terminate, any
          Plan in a manner, or take any other action with respect to any Plan,
          which could reasonably be expected to result in any liability of the
          Borrower or any ERISA Affiliate to the PBGC in excess of $100,000;

               (c) Fail to make, or permit any ERISA Affiliate to fail to make,
          full payment when due of all amounts under the provisions of any Plan,
          agreement relating thereto or applicable law, the Borrower or any
          ERISA Affiliate is required to pay as contributions thereto;

               (d) Permit to exist, or allow any ERISA Affiliate to permit to
          exist, any accumulated funding deficiency in excess of $100,000 within
          the meaning of Section 302 of ERISA or section 412 of the Code,
          whether or not waived, with respect to any Plan;

               (e) Permit, or allow any ERISA Affiliate to permit, the actuarial
          present value of the benefit liabilities under any Plan maintained by
          the Borrower or any ERISA Affiliate which is regulated under Title IV
          of ERISA to exceed the current value of the assets (computed on a plan
          termination basis in accordance with Title IV of ERISA) of such Plan
          allocable to such benefit liabilities by an amount in excess of
          $100,000. The term "actuarial present value of the benefit
          liabilities" shall have the meaning specified in section 4041 of
          ERISA;

               (f) Contribute to or assume an obligation to contribute to, or
          permit any ERISA Affiliate to contribute to or assume an obligation to
          contribute to, any Multiemployer Plan;

               (g) Acquire, or permit any ERISA Affiliate to acquire, an
          interest in any Person that causes such Person to become an ERISA
          Affiliate with respect to the Borrower or any ERISA Affiliate if such
          Person sponsors, maintains or contributes to, or at any time in the
          six-year period preceding such acquisition has sponsored, maintained,
          or contributed to, (1) any Multiemployer Plan, or (2) any other Plan
          that is subject to Title IV of ERISA under which the actuarial present
          value of the benefit liabilities under such Plan exceeds the current
          value of the assets (computed on a plan termination basis in
          accordance with Title IV of ERISA) of such Plan allocable to such
          benefit liabilities; (h) Incur, or permit any ERISA Affiliate to
          incur, a liability to or on account of a Plan under sections 515,
          4062, 4063, 4064, 4201 or 4204 of ERISA which the aggregate for all
          such liability exceeds $100,000;

               (i) Contribute to or assume an obligation to contribute to, or
          permit any ERISA Affiliate to contribute to or assume an obligation to
          contribute to, any employee welfare benefit plan, as defined in
          section 3(1) of ERISA, including, without limitation, any such plan
          maintained to provide benefits to former

                                       49
<PAGE>

          employees of such entities, that may not be terminated by such
          entities in their sole discretion at any time without any material
          liability; or

               (j) Amend or permit any ERISA Affiliate to amend, a Plan
          resulting in an increase in current liability such that the Borrower
          or any ERISA Affiliate is required to provide security to such Plan
          under section 401(a)(29) of the Code.

          Section 9.11 SALE OR DISCOUNT OF RECEIVABLES. Neither the Borrower nor
any Subsidiary will discount or sell (with or without recourse) any of its notes
receivable or accounts receivable.

          Section 9.12 [INTENTIONALLY OMITTED]

          Section 9.13 SALE OF OIL AND GAS PROPERTIES. The Borrower will not,
and will not permit any Subsidiary to, sell, assign, farm-out, convey or
otherwise transfer any Hydrocarbon Interests except for (i) the sale of
Hydrocarbons in the ordinary course of business; and (ii) the sale or transfer
of equipment that is no longer necessary for the business of the Borrower or
such Subsidiary or is replaced by equipment of at least comparable value and
use.

          Section 9.14 ENVIRONMENTAL MATTERS. Neither the Borrower nor any
Subsidiary will knowingly cause or permit any of its Property to be in violation
of, or knowingly do anything or permit anything to be done which will subject
any such Property to any remedial obligations under any Environmental Laws,
assuming disclosure to the applicable Governmental Authority of all relevant
facts, conditions and circumstances, if any, pertaining to such Property where
such violations or remedial obligations would have a Material Adverse Effect.

          Section 9.15 TRANSACTIONS WITH AFFILIATES. Neither the Borrower nor
any Subsidiary will enter into any transaction, including, without limitation,
any purchase, sale, lease or exchange of Property or the rendering of any
service, with any Affiliate unless such transactions are otherwise not in
violation of this Agreement, are in the ordinary course of its business and are
upon fair and reasonable terms no less favorable to it than it would obtain in a
comparable arm's length transaction with a Person not an Affiliate.

          Section 9.16 SUBSIDIARIES. The Borrower will not, and will not permit
any Subsidiary to, create any additional Subsidiaries or make any additional
investment in a Subsidiary. All Subsidiaries together at no time shall own or
hold Oil and Gas Properties having proved reserves with a net discounted present
value calculated in the same manner as in the most recent Reserve Report in
excess of 10% of the total net discounted present value of Proved Reserves of
the Borrower and its Subsidiaries as reflected in said Reserve Report (plus such
Subsidiaries' proved reserves not included in such Reserve Report). No
Subsidiary may enter into any agreement other than the Loan Documents or the
Senior Loan Documents which limits upstream transfer of dividends to the
Borrower No assets may be transferred to a Subsidiary which is not a Guarantor.

          Section 9.17 NEGATIVE PLEDGE AGREEMENTS. The Borrower will not and
will not permit any Subsidiary to create, incur, assume or suffer to exist any
contract, agreement or understanding (other than the Loan Documents and the
Senior Loan Documents) which in any way prohibits or restricts (i) the granting,
conveying, creation or imposition of any Lien on any

                                       50
<PAGE>

of its Property or (ii) any Subsidiary from paying dividends or making any other
distribution to the Borrower or which requires the consent of or notice to other
Persons in connection with any of the foregoing.

          Section 9.18 GAS IMBALANCES, TAKE-OR-PAY OR OTHER PREPAYMENTS. The
Borrower will not allow gas imbalances, take-or-pay or other prepayments with
respect to the Hydrocarbon Interests of the Borrower and its Subsidiaries which
would require the Borrower or its Subsidiaries to deliver five percent (5%) or
more of the Borrower's and its Subsidiaries' Hydrocarbons produced on a monthly
basis from the Hydrocarbon Interests at some future time without then or
thereafter receiving full payment therefor.

          Section 9.19 BORROWER AS OPERATOR. The Borrower will not and will not
permit any of the Subsidiaries to voluntarily resign as operator of more than
twenty-five percent (25%) of their currently operated Oil and Gas Properties
unless the new operator is acceptable to the Senior Agent.

          Section 9.20 RESTRICTIONS WHILE OUTSTANDING INDEBTEDNESS EXCEEDS THE
BORROWING BASE. The Borrower covenants and agrees that until the Covenant
Release Date without prior written consent of the Majority Lenders:

               (a) The Borrower will not permit Net Seismic and Land
          Expenditures to exceed three million dollars (the NSLE Limit).
          Beginning December 31, 2000, the NSLE Limit will increase at the
          beginning of each succeeding quarter of a year by an amount equal to
          15% of the total projected capital expenditures for such quarter. This
          limitation in this subsection (a)shall only be in place at any time
          that Indebtedness at the end of the quarter plus actual Net Seismic
          and Land Expenditures for such quarter divided by such quarter's
          EBITDA minus capitalized general and administrative expenses is
          greater than 16:1 (or 4:1 on an annualized basis).

               (b) For so long as SCI remains a "SCI Lender", as such term is
          defined in the Senior Credit Agreement, Borrower will not permit its
          capital expenditures to deviate materially from the then current CAPEX
          Plan under the Senior Credit Agreement, with the materiality of any
          such deviation to be determined by the SCI Lenders in their sole but
          reasonable discretion and at any point when SCI does not remain an SCI
          Lender, the Borrower will not permit its capital expenditures to
          deviate materially from the then current CAPEX Plan submitted
          hereunder, with the materiality of any such deviation to be determined
          by the Majority Lenders, in their sole but reasonable discretion.

               (c) The Borrower will not allow growth in general and
          administrative expenses to exceed the amount which is reasonable and
          necessary to retain key employees and to execute the Borrower's
          business plan to maximize growth in resources, net assets, cash flow
          and equity value.

               (d) Borrower will not permit any new wells to be spudded for
          which the weekly cash budget indicates that there will be insufficient
          working capital to

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<PAGE>

          complete, after taking into account availability under this Agreement
          and the Senior Credit Agreement.

               Section 9.21 DEBT TO RAPRV. Upon receipt of the reports required
by Section 8.07 and such other reports, data and supplemental information as may
from time to time be reasonably requested by the Agent (the "ENGINEERING
REPORTS"), the Agent will determine or redetermine, as appropriate, the RAPRV
10% and the RAPRV 7%. The Agent shall propose to the Lenders the RAPRV 10% and
the RAPRV 7% within ten (10) Business Days following receipt by the Agent and
the Lenders of the Engineering Reports in a timely and complete manner.

               (a) The Borrower will not permit RAPRV 7% to fall below a value
          of (i) from January 1, 2001 to July 30, 2001, $62,500,000; (ii) from
          July 31, 2001 to January 30, 2002, $67,500,000; and (iii) on and after
          January 31, 2002, the amount of the Senior Indebtedness actually
          outstanding under the Senior Credit Agreement, excluding any
          obligations of any kind under any Hedging Agreement.

               (b) If the "Aggregate Commitments" under the Senior Credit
          Agreement, determined without regard to any Debt arising under or in
          relation to Hedging Agreements, exceed $75,000,000, the Borrower will
          not permit RAPRV 10% to fall below the amount of the Senior
          Indebtedness actually outstanding under the Senior Credit Agreement,
          excluding any obligations of any kind under any Hedging Agreement.

                                   ARTICLE 10

                           EVENTS OF DEFAULT; REMEDIES

          Section 10.01 EVENTS OF DEFAULT. One or more of the following events
shall constitute an "EVENT OF DEFAULT":

               (a) the Borrower shall default in the payment or prepayment when
          due of any principal of or interest on any Loan or any fees or other
          amount payable by it hereunder or under any other Loan Document and
          such default, other than a default of a payment or prepayment of
          principal (which shall have no cure period), shall continue unremedied
          for a period of three (3) Business Days; or

               (b) the Borrower or any Guarantor shall default in the payment
          when due of any principal of or interest on any of its other Debt
          aggregating $1,000,000 or more, or any event specified in any note,
          agreement, indenture or other document evidencing or relating to any
          such Debt shall occur if the effect of such event is to cause, or
          (with the giving of any notice or the lapse of time or both) to permit
          the holder or holders of such Debt (or a trustee or agent on behalf of
          such holder or holders) to cause, such Debt to become due prior to its
          stated maturity; or

               (c) any representation, warranty, or certification made or deemed
          made herein or in any other Loan Document by the Borrower or any
          Guarantor, or any certificate furnished by the Borrower or any
          Guarantor to any Lender or the Agent

                                      52
<PAGE>

          pursuant to the provisions hereof or any Loan Document, shall prove to
          have been false or misleading as of the time made or furnished in any
          material and adverse respect; or

               (d) the Borrower shall default in the performance of any of its
          obligations under Article IX or Section 8.01(c) of this Agreement; or
          the Borrower shall default in the performance of any of its
          obligations under any other Article of the Agreement or under or any
          other Loan Document to which it is a party (other than the payment of
          amounts due which shall be governed by Section 10.01(a)) and such
          default shall continue unremedied for a period of thirty (30) days
          after notice thereof to the Borrower by the Agent or any of the
          Lenders (through the Agent); or

               (e) any Guarantor shall default in the performance of its
          obligation to pay the Liabilities (as defined therein) at maturity or,
          with respect to Brigham Exploration, performance of any covenant under
          Section 5.1(i) or Section 5.2 of its Guaranty Agreement; or any
          Guarantor shall default in the performance of any of its other
          obligations under its Guaranty Agreement and such default shall
          continue unremedied for a period of thirty (30) days after notice
          thereof to the Guarantor by the Agent or the any of the Lenders
          (through the Agent); or

               (f) the Borrower shall admit in writing its inability to, or be
          generally unable to, pay its debts as such debts become due; or

               (g) the Borrower shall (i) apply for or consent to the
          appointment of, or the taking of possession by, a receiver, custodian,
          trustee or liquidator of itself or of all or a substantial part of its
          property, (ii) make a general assignment for the benefit of its
          creditors, (iii) commence a voluntary case under the Federal
          Bankruptcy Code (as now or hereafter in effect), (iv) file a petition
          seeking to take advantage of any other law relating to bankruptcy,
          insolvency, reorganization, winding-up, liquidation or composition or
          readjustment of debts, (v) fail to controvert in a timely and
          appropriate manner, or acquiesce in writing to, any petition filed
          against it in an involuntary case under the Federal Bankruptcy Code,
          or (vi) take any corporate action for the purpose of effecting any of
          the foregoing; or

               (h) a proceeding or case shall be commenced, without the
          application or consent of the Borrower, in any court of competent
          jurisdiction, seeking (i) its liquidation, reorganization, dissolution
          or winding-up, or the composition or readjustment of its debts, (ii)
          the appointment of a trustee, receiver, custodian, liquidator or the
          like of the Borrower of all or any substantial part of its assets, or
          (iii) similar relief in respect of the Borrower under any law relating
          to bankruptcy, insolvency, reorganization, winding-up, or composition
          or adjustment of debts, and such proceeding or case shall continue
          undismissed, or an order, judgment or decree approving or ordering any
          of the foregoing shall be entered and continue unstayed and in effect,
          for a period of 60 days; or an order for relief against the

                                       53
<PAGE>

          Borrower shall be entered in an involuntary case under the Federal
          Bankruptcy Code; or

               (i) a judgment or judgments for the payment of money in excess of
          $1,000,000 in the aggregate shall be rendered by a court against the
          Borrower and the same shall not be discharged (or provision shall not
          be made for such discharge), or a stay of execution thereof shall not
          be procured, within thirty (30) days from the date of entry thereof
          and the Borrower shall not, within said period of 30 days, or such
          longer period during which execution of the same shall have been
          stayed, appeal therefrom and cause the execution thereof to be stayed
          during such appeal; or

               (j) the Loan Documents after delivery thereof shall for any
          reason, except to the extent permitted by the terms thereof, cease to
          be in full force and effect and valid, binding and enforceable in all
          material respects in accordance with their terms, or cease in any
          material respect to create a valid and perfected Lien of the priority
          required thereby on any of the collateral purported to be covered
          thereby, except to the extent permitted by the terms of this
          Agreement, or the Borrower or any Guarantor shall so state in writing;
          or

               (k) any Guarantor discontinues its usual business or suffers to
          exist any material change in its ownership, control or management; or

               (l) any Guarantor takes, suffers or permits to exist any of the
          events or conditions referred to in paragraphs (f), (g), (h) or (i)
          hereof or if any guaranty agreement related thereto shall for any
          reason cease to be valid and binding on such Guarantor in all material
          respects or if such Guarantor shall so state in writing; or

               (m) Brigham Exploration ceases to own (directly or indirectly)
          100% of the Borrower; or

               (n) the Borrower ceases to be the primary operating entity for
          Brigham Exploration and its Subsidiaries and the Borrower and its
          Subsidiaries cease to be the only Brigham Exploration entities owning
          Oil and Gas Properties.

               Section 10.02 REMEDIES. Subject to any contrary or other
provisions of the Subordination Agreement:

               (a) At any time during the continuance of an Event of Default
          other than one referred to in clauses (f), (g) or (h) of Section 10.01
          or in clause (l) to the extent it relates to clauses (f), (g) or (h),
          the Agent, upon request of the Majority Lenders, shall, by notice to
          the Borrower, cancel the Commitments and/or declare the principal
          amount then outstanding of, and the accrued interest on, the Loans and
          all other amounts payable by the Borrower hereunder and under the
          Notes to be forthwith due and payable, whereupon such amounts shall be
          immediately due and payable without presentment, demand, protest,
          notice of intent to accelerate, notice of acceleration or other
          formalities of any kind, all of which are hereby

                                      54
<PAGE>

          expressly waived by the Borrower. Once an acceleration has been
          declared pursuant to the foregoing, no subsequent cure of the Event of
          Default shall negate such acceleration or the rights and remedies of
          the Agent and the Lenders with respect thereto without the express
          written consent of all of the Lenders.

               (b) In the case of the occurrence of an Event of Default referred
          to in clauses (f), (g) or (h) of Section 10.01 or in clause (l) to the
          extent it relates to clauses (f), (g) or (h), the Commitments shall be
          automatically canceled and the principal amount then outstanding of,
          and the accrued interest on, the Loans and all other amounts payable
          by the Borrower hereunder and under the Notes shall become
          automatically immediately due and payable without presentment, demand,
          protest, notice of intent to accelerate, notice of acceleration or
          other formalities of any kind, all of which are hereby expressly
          waived by the Borrower.

               (c) All proceeds received after maturity of the Notes, whether by
          acceleration or otherwise shall be applied first to reimbursement of
          expenses and indemnities provided for in the Loan Documents; second to
          accrued interest on the Notes; third to fees of the Lenders; fourth
          pro rata to principal outstanding on the Notes and other Indebtedness
          of the Lenders; and any excess shall be paid to the Borrower or as
          otherwise required by any Governmental Requirement.

          Section 10.03 PRODUCTION AND PROCEEDS. Notwithstanding that, by the
terms of the various Mortgages and other Loan Documents, the Borrower and any
other mortgagors are and will be assigning to Agent all of the Hydrocarbons
covered thereby and all of the products thereof and proceeds and revenues
attributable thereto and all payments in lieu of such Hydrocarbons (in this
section collectively called the "Production and Proceeds"), so long as no
Default has occurred and is continuing (a) the Borrower and such mortgagors may
continue to receive all such Production and Proceeds, subject, however, to the
Liens created under the Mortgages and other Loan Documents, and (b) upon the
Borrower's request the Agent will confirm to any purchasers of Hydrocarbons,
title examiners, or other Persons that the Borrower and such mortgagors continue
to have the right so to receive such Production and Proceeds until notification
by the Agent of the occurrence of a Default. During the continuance of a
Default, however, the Agent may exercise its rights and remedies granted under
the Mortgages and the other Loan Documents, including the rights and remedies
granted under the Mortgages and the other Loan Documents, including the right to
obtain possession of all Production and Proceeds then held by the Borrower and
such mortgagors and to receive directly from the purchasers of Hydrocarbons all
other Production Proceeds, subject in each instance to the terms of the
Subordination Agreement. In no case shall any failure by the Agent to collect
directly any such Production and Proceeds constitute in any way a release of any
of its rights under the Loan Documents.

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<PAGE>

                                   ARTICLE 11

                                    THE AGENT

          Section 11.01 APPOINTMENT, POWERS AND IMMUNITIES. Each Lender hereby
irrevocably appoints and authorizes the Agent to act as its agent hereunder and
under the other Loan Documents with such powers as are specifically delegated to
the Agent by the terms of this Agreement and the other Loan Documents, together
with such other powers as are reasonably incidental thereto. The Agent (which
term as used in this sentence and in Section 11.05 and the first sentence of
Section 11.06 shall include reference to its Affiliates and its and its
Affiliates' officers, directors, employees, attorneys, accountants, experts and
agents): (i) shall have no duties or responsibilities except those expressly set
forth in the Loan Documents, and shall not by reason of the Loan Documents be a
trustee or fiduciary for any Lender; (ii) makes no representation or warranty to
any Lender and shall not be responsible to the Lenders for any recitals,
statements, representations or warranties contained in this Agreement, or in any
certificate or other document referred to or provided for in, or received by any
of them under, this Agreement, or for the value, validity, effectiveness,
genuineness, execution, effectiveness, legality, enforceability or sufficiency
of this Agreement, any Note or any other document referred to or provided for
herein or for any failure by the Borrower or any other Person (other than the
Agent) to perform any of its obligations hereunder or thereunder or for the
existence, value, perfection or priority of any collateral security or the
financial or other condition of the Borrower, the Subsidiaries or any other
obligor or guarantor; (iii) except pursuant to Section 11.07 shall not be
required to initiate or conduct any litigation or collection proceedings
hereunder; and (IV) SHALL NOT BE RESPONSIBLE FOR ANY ACTION TAKEN OR OMITTED TO
BE TAKEN BY IT HEREUNDER OR UNDER ANY OTHER DOCUMENT OR INSTRUMENT REFERRED TO
OR PROVIDED FOR HEREIN OR IN CONNECTION HEREWITH INCLUDING ITS OWN ORDINARY
NEGLIGENCE, EXCEPT FOR ITS OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. The Agent
may employ agents, accountants, attorneys and experts and shall not be
responsible for the negligence or misconduct of any such agents, accountants,
attorneys or experts selected by it in good faith or any action taken or omitted
to be taken in good faith by it in accordance with the advice of such agents,
accountants, attorneys or experts. The Agent may deem and treat the payee of any
Note as the holder thereof for all purposes hereof unless and until a written
notice of the assignment or transfer thereof permitted hereunder shall have been
filed with the Agent. The Agent is authorized to release any collateral that is
permitted to be sold or released pursuant to the terms of the Loan Documents.

          Section 11.02 RELIANCE BY AGENT. The Agent shall be entitled to rely
upon any certification, notice or other communication (including any thereof by
telephone, telex, telecopier, telegram or cable) believed by it to be genuine
and correct and to have been signed or sent by or on behalf of the proper Person
or Persons, and upon advice and statements of legal counsel, independent
accountants and other experts selected by the Agent.

          Section 11.03 DEFAULTS. The Agent shall not be deemed to have
knowledge of the occurrence of a Default (other than the non-payment of
principal of or interest on Loans or of fees) unless the Agent has received
notice from a Lender or the Borrower specifying such Default and stating that
such notice is a "Notice of Default." In the event that the Agent receives such
a notice of the occurrence of a Default, the Agent shall give prompt notice
thereof to the

                                      56
<PAGE>

Lenders. In the event of a payment Default, the Agent shall give each Lender
prompt notice of each such payment Default.

          Section 11.04 RIGHTS AS A LENDER. With respect to its Commitments and
the Loans made by it, Agent shall have the same rights and powers hereunder as
any other Lender and may exercise the same as though it were not acting as the
Agent, and the term "Lender" or "Lenders" shall, unless the context otherwise
indicates, include the Agent in its individual capacity. Agent and its
Affiliates may (without having to account therefor to any Lender) accept
deposits from, lend money to and generally engage in any kind of banking, trust
or other business with the Borrower (and any of its Affiliates) as if it were
not acting as the Agent, and Agent and its Affiliates may accept fees and other
consideration from the Borrower for services in connection with this Agreement
or otherwise without having to account for the same to the Lenders.

          Section 11.05 INDEMNIFICATION. THE LENDERS AGREE TO INDEMNIFY THE
AGENT RATABLY IN ACCORDANCE WITH THEIR PERCENTAGE SHARES FOR THE INDEMNITY
MATTERS AS DESCRIBED IN SECTION 12.03 TO THE EXTENT NOT INDEMNIFIED OR
REIMBURSED BY THE BORROWER UNDER SECTION 12.03, BUT WITHOUT LIMITING THE
OBLIGATIONS OF THE BORROWER UNDER SAID SECTION 12.03 AND FOR ANY AND ALL OTHER
LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND AND NATURE WHATSOEVER WHICH MAY BE
IMPOSED ON, INCURRED BY OR ASSERTED AGAINST THE AGENT IN ANY WAY RELATING TO OR
ARISING OUT OF: (I) THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OTHER
DOCUMENTS CONTEMPLATED BY OR REFERRED TO HEREIN OR THE TRANSACTIONS CONTEMPLATED
HEREBY, BUT EXCLUDING, UNLESS A DEFAULT HAS OCCURRED AND IS CONTINUING, NORMAL
ADMINISTRATIVE COSTS AND EXPENSES INCIDENT TO THE PERFORMANCE OF ITS AGENCY
DUTIES HEREUNDER OR (II) THE ENFORCEMENT OF ANY OF THE TERMS OF THIS AGREEMENT,
ANY OTHER LOAN DOCUMENT OR OF ANY SUCH OTHER DOCUMENTS; WHETHER OR NOT ANY OF
THE FOREGOING SPECIFIED IN THIS SECTION 11.05 ARISES FROM THE SOLE OR CONCURRENT
NEGLIGENCE OF THE AGENT, PROVIDED THAT NO LENDER SHALL BE LIABLE FOR ANY OF THE
FOREGOING TO THE EXTENT THEY ARISE FROM THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF THE AGENT.

          Section 11.06 NON-RELIANCE ON AGENT AND OTHER LENDERS. Each Lender
acknowledges and agrees that it has, independently and without reliance on the
Agent or any other Lender, and based on such documents and information as it has
deemed appropriate, made its own credit analysis of the Borrower and its
decision to enter into this Agreement, and that it will, independently and
without reliance upon the Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own analysis and decisions in taking or not taking action under this Agreement.
The Agent shall not be required to keep itself informed as to the performance or
observance by the Borrower of the Loan Documents or any other document referred
to or provided for herein or to inspect the properties or books of the Borrower.
Except for notices, reports and other documents and information expressly
required to be furnished to the Lenders by the Agent hereunder, the Agent

                                      57
<PAGE>

shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning the affairs, financial condition or business of
the Borrower (or any of its Affiliates) which may come into the possession of
the Agent or any of its Affiliates. In this regard, each Lender acknowledges
that Vinson & Elkins is acting in this transaction as special counsel to the
Agent only, except to the extent otherwise expressly stated in any legal opinion
or any Loan Document. Each Lender will consult with its own legal counsel to the
extent that it deems necessary in connection with the Loan Documents and the
matters contemplated therein.

          Section 11.07 ACTION BY AGENT. Except for action or other matters
expressly required of the Agent hereunder, the Agent shall in all cases be fully
justified in failing or refusing to act hereunder unless it shall (i) receive
written instructions from the Majority Lenders (or all of the Lenders as
expressly required by Section 12.04) specifying the action to be taken, and (ii)
be indemnified to its satisfaction by the Lenders against any and all liability
and expenses which may be incurred by it by reason of taking or continuing to
take any such action. The instructions of the Majority Lenders (or all of the
Lenders as expressly required by Section 12.04) and any action taken or failure
to act pursuant thereto by the Agent shall be binding on all of the Lenders. If
a Default has occurred and is continuing, the Agent shall take such action with
respect to such Default as shall be directed by the Majority Lenders (or all of
the Lenders as required by Section 12.04) in the written instructions (with
indemnities) described in this Section 11.07, provided that, unless and until
the Agent shall have received such directions, the Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such Default as it shall deem advisable in the best interests of the Lenders.
In no event, however, shall the Agent be required to take any action which
exposes the Agent to personal liability or which is contrary to this Agreement
and the other Loan Documents or applicable law.

          Section 11.08 RESIGNATION OR REMOVAL OF AGENT. Subject to the
appointment and acceptance of a successor Agent as provided below, the Agent may
resign at any time by giving notice thereof to the Lenders and the Borrower, and
the Agent may be removed at any time with or without cause by the Majority
Lenders. Upon any such resignation or removal, the Majority Lenders shall have
the right to appoint a successor Agent. If no successor Agent shall have been so
appointed by the Majority Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Agent's giving of notice of
resignation or the Majority Lenders' removal of the retiring Agent, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent from
among the Lenders. Upon the acceptance of such appointment hereunder by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent,
and the retiring Agent shall be discharged from its duties and obligations
hereunder. After any retiring Agent's resignation or removal hereunder as Agent,
the provisions of this Article XI and Section 12.03 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Agent.

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                                   ARTICLE 12

                                  MISCELLANEOUS

          Section 12.01 WAIVER. No failure on the part of the Agent or any
Lender to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power or privilege under any of the Loan Documents shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege under any of the Loan Documents preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The remedies provided herein are cumulative and not exclusive of any remedies
provided by law.

          Section 12.02 NOTICES. All notices and other communications provided
for herein and in the other Loan Documents (including, without limitation, any
modifications of, or waivers or consents under, this Agreement or the other Loan
Documents) shall be given or made by telex, telecopy, courier or U.S. Mail or in
writing and telexed, telecopied, mailed or delivered to the intended recipient
at the "Address for Notices" specified below its name on the signature pages
hereof or in the Loan Documents or, as to any party, at such other address as
shall be designated by such party in a notice to each other party. Except as
otherwise provided in this Agreement or in the other Loan Documents, all such
communications shall be deemed to have been duly given when transmitted, if
transmitted before 1:00 p.m. Houston time on a Business Day (otherwise on the
next succeeding Business Day) by telex or telecopier and evidence or
confirmation of receipt is obtained, or personally delivered or, in the case of
a mailed notice, three (3) Business Days after the date deposited in the mails,
postage prepaid, in each case given or addressed as aforesaid.

          Section 12.03 PAYMENT OF EXPENSES, INDEMNITIES, ETC. The Borrower
agrees:

               (a) whether or not the transactions hereby contemplated are
          consummated, to pay all reasonable expenses of the Agent in the
          administration (both before and after the execution hereof and
          including advice of counsel as to the rights and duties of the Agent
          and the Lenders with respect thereto) of, and in connection with the
          negotiation, syndication, investigation, preparation, execution and
          delivery of, recording or filing of, preservation of rights under,
          enforcement of, and refinancing, renegotiation or restructuring of,
          the Loan Documents and any amendment, waiver or consent relating
          thereto (including, without limitation, the reasonable fees and
          disbursements of counsel and other outside consultants for the Agent
          and, in the case of enforcement, the reasonable fees and disbursements
          of counsel for the Agent and any of the Lenders); and promptly
          reimburse the Agent for all amounts expended, advanced or incurred by
          the Agent or the Lenders to satisfy any obligation of the Borrower
          under this Agreement or any other Loan Document, including without
          limitation, all costs and expenses of foreclosure;

               (b) TO INDEMNIFY THE AGENT AND EACH LENDER AND EACH OF THEIR
          AFFILIATES AND EACH OF THEIR OFFICERS, DIRECTORS, EMPLOYEES,
          REPRESENTATIVES, AGENTS, ATTORNEYS, ACCOUNTANTS AND EXPERTS
          ("INDEMNIFIED PARTIES") FROM, HOLD EACH OF THEM HARMLESS AGAINST AND
          PROMPTLY UPON DEMAND PAY OR REIMBURSE EACH OF THEM FOR, THE INDEMNITY
          MATTERS WHICH MAY BE INCURRED BY OR ASSERTED AGAINST OR INVOLVE ANY OF
          THEM (WHETHER OR NOT ANY OF THEM IS DESIGNATED A

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          PARTY THERETO) AS A RESULT OF, ARISING OUT OF OR IN ANY WAY RELATED TO
          (I) ANY ACTUAL OR PROPOSED USE BY THE BORROWER OF THE PROCEEDS OF ANY
          OF THE LOANS, (II) THE EXECUTION, DELIVERY AND PERFORMANCE OF THE LOAN
          DOCUMENTS, (III) THE OPERATIONS OF THE BUSINESS OF THE BORROWER AND
          THE SUBSIDIARIES, (IV) THE FAILURE OF THE BORROWER OR ANY GUARANTOR TO
          COMPLY WITH THE TERMS OF ANY OTHER LOAN DOCUMENT OR THIS AGREEMENT, OR
          WITH ANY GOVERNMENTAL REQUIREMENT, (V) ANY INACCURACY OF ANY
          REPRESENTATION OR ANY BREACH OF ANY WARRANTY OF THE BORROWER OR ANY
          GUARANTOR SET FORTH IN ANY OF THE LOAN DOCUMENTS, (VI) ANY ASSERTION
          THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED
          PURSUANT TO THE LOAN DOCUMENTS OR (VII) ANY OTHER ASPECT OF THE LOAN
          DOCUMENTS, INCLUDING, WITHOUT LIMITATION, THE REASONABLE FEES AND
          DISBURSEMENTS OF COUNSEL AND ALL OTHER REASONABLE EXPENSES INCURRED IN
          CONNECTION WITH INVESTIGATING, DEFENDING OR PREPARING TO DEFEND ANY
          SUCH ACTION, SUIT, PROCEEDING (INCLUDING ANY INVESTIGATIONS,
          LITIGATION OR INQUIRIES) OR CLAIM AND INCLUDING ALL INDEMNITY MATTERS
          ARISING BY REASON OF THE ORDINARY NEGLIGENCE OF ANY INDEMNIFIED PARTY,
          BUT EXCLUDING ALL INDEMNITY MATTERS ARISING SOLELY BY REASON OF CLAIMS
          BETWEEN THE LENDERS OR ANY LENDER AND THE AGENT OR A LENDER'S
          SHAREHOLDERS AGAINST THE AGENT OR LENDER OR BY REASON OF THE GROSS
          NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART OF ANY INDEMNIFIED PARTY;
          AND

               (c) TO INDEMNIFY AND HOLD HARMLESS FROM TIME TO TIME THE
          INDEMNIFIED PARTY FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, COST
          RECOVERY ACTIONS, ADMINISTRATIVE ORDERS OR PROCEEDINGS, DAMAGES AND
          LIABILITIES TO WHICH ANY SUCH PERSON MAY BECOME SUBJECT (I) UNDER ANY
          ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY OF ITS PROPERTIES,
          INCLUDING WITHOUT LIMITATION, THE TREATMENT OR DISPOSAL OF HAZARDOUS
          SUBSTANCES ON ANY OF THEIR PROPERTIES, (II) AS A RESULT OF THE BREACH
          OR NONCOMPLIANCE BY THE BORROWER WITH ANY ENVIRONMENTAL LAW APPLICABLE
          TO THE BORROWER, (III) DUE TO PAST OWNERSHIP BY THE BORROWER OF ANY OF
          ITS PROPERTIES OR PAST ACTIVITY ON ANY OF ITS PROPERTIES WHICH, THOUGH
          LAWFUL AND FULLY PERMISSIBLE AT THE TIME, RESULTS IN PRESENT
          LIABILITY, (IV) THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT OR
          DISPOSAL OF HAZARDOUS SUBSTANCES ON OR AT ANY OF THE PROPERTIES OWNED
          OR OPERATED BY THE BORROWER OR

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          (V) ANY OTHER ENVIRONMENTAL, HEALTH OR SAFETY CONDITION IN CONNECTION
          WITH THE LOAN DOCUMENTS, PROVIDED, HOWEVER, NO INDEMNITY SHALL BE
          AFFORDED UNDER THIS SECTION 12.03(C) IN RESPECT OF ANY PROPERTY FOR
          ANY OCCURRENCE ARISING FROM THE ACTS OR OMISSIONS OF THE AGENT OR ANY
          LENDER DURING THE PERIOD AFTER WHICH SUCH PERSON, ITS SUCCESSORS OR
          ASSIGNS, OR THEIR AGENTS OR REPRESENTATIVES, SHALL HAVE OBTAINED
          POSSESSION OF SUCH PROPERTY (WHETHER BY FORECLOSURE OR DEED IN LIEU OF
          FORECLOSURE, AS MORTGAGEE-IN-POSSESSION OR OTHERWISE).

               (d) No Indemnified Party may settle any claim to be indemnified
          without the consent of the indemnitor, such consent not to be
          unreasonably withheld; PROVIDED, that the indemnitor may not
          reasonably withhold consent to any settlement that an Indemnified
          Party proposes, if the indemnitor does not have the financial ability
          to pay all its obligations outstanding and asserted against the
          indemnitor at that time, including, without limitation, the maximum
          potential claims against the Indemnified Party to be indemnified
          pursuant to this Section 12.03.

               (e) In the case of any indemnification hereunder, the Agent or
          Lender, as appropriate shall give notice to the Borrower of any such
          claim or demand being made against the Indemnified Party and the
          Borrower shall have the non-exclusive right to join in the defense
          against any such claim or demand provided that if the Borrower
          provides a defense, the Indemnified Party shall bear its own cost of
          defense unless there is a conflict between the Borrower and such
          Indemnified Party.

               (f) THE FOREGOING INDEMNITIES SHALL EXTEND TO THE INDEMNIFIED
          PARTIES NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY
          KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN
          AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL
          TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF
          TORTS OF ONE OR MORE OF THE INDEMNIFIED PARTIES OR BY REASON OF STRICT
          LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNIFIED
          PARTIES. TO THE EXTENT THAT AN INDEMNIFIED PARTY IS FOUND TO HAVE
          COMMITTED AN ACT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, THIS
          CONTRACTUAL OBLIGATION OF INDEMNIFICATION SHALL CONTINUE BUT SHALL
          ONLY EXTEND TO THE PORTION OF THE CLAIM THAT IS DEEMED TO HAVE
          OCCURRED BY REASON OF EVENTS OTHER THAN THE GROSS NEGLIGENCE OR
          WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PARTY.

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               (g) The Borrower's obligations under this Section 12.03 shall
          survive any termination of this Agreement and the payment of the Notes
          and shall continue thereafter in full force and effect.

               (h) The Borrower shall pay any amounts due under this Section
          12.03 within thirty (30) days of the receipt by the Borrower of notice
          of the amount due.

          Section 12.04 AMENDMENTS, ETC. Any provision of this Agreement or any
other Loan Document may be amended, modified or waived with the Borrower's and
the Majority Lenders' written consent; provided that (i) no amendment,
modification or waiver which extends the final maturity of the Loans, increases
the Aggregate Maximum Credit Amounts, forgives the principal amount of any
Indebtedness outstanding under this Agreement, releases any guarantor of the
Indebtedness or releases all or substantially all of the collateral, reduces the
interest rate applicable to the Loans or the fees payable to the Lenders
generally, affects Section 2.03(a), this Section 12.04 or Section 12.06(a) or
modifies the definition of "Majority Lenders" shall be effective without consent
of all Lenders; (ii) no amendment, modification or waiver which increases the
Maximum Credit Amount of any Lender shall be effective without the consent of
such Lender; and (iii) no amendment, modification or waiver which modifies the
rights, duties or obligations of the Agent shall be effective without the
consent of the Agent.

          Section 12.05 SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

          Section 12.06 ASSIGNMENTS AND PARTICIPATIONS

               (a) The Borrower may not assign its rights or obligations
          hereunder or under the Notes without the prior consent of all of the
          Lenders and the Agent.

               (b) Any Lender may sell, assign, transfer or negotiate to one or
          more other lenders, commercial banks, insurance companies, other
          financial institutions or any other Person all or any portion of its
          rights and obligations hereunder pursuant to an Assignment Agreement
          substantially in the form of Exhibit E hereto ("ASSIGNMENT"), and
          acceptance of such Assignment by any assignee shall constitute the
          agreement of such assignee to be bound by the terms of this Agreement
          applicable to the assigning Lender.

               (c) Promptly after receiving evidence of an assignment under
          Section 12.06(b), the Agent shall send a notice of such assignment to
          the Borrower. Upon receipt of such notice and of the Notes that are
          the subject thereof, the Borrower will, at its own expense, execute
          and deliver new Notes to the assignor and/or assignee, as appropriate,
          in accordance with their respective interests. Upon receipt of such
          executed Assignment and of the Notes which are the subject thereof,
          the Borrower will, at its own expense, execute and deliver new Notes
          to the assignor and/or assignee, as appropriate, in accordance with
          their respective interests as they appear. Upon the effectiveness of
          any assignment pursuant to Section 12.06(b) the assignee will become a
          "Lender," if

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          not already a "Lender," for all purposes of this Agreement and the
          other Loan Documents. The assignor shall be relieved of its
          obligations hereunder to the extent of such assignment (and if the
          assigning Lender no longer holds any rights or obligations under this
          Agreement, such assigning Lender shall cease to be a "Lender"
          hereunder except that its rights under Sections 4.06, 5.01, 5.05 and
          12.03 shall not be affected). The Agent will prepare on the last
          Business Day of each month during which an assignment has become
          effective pursuant to Section 12.06(b) a new Annex I giving effect to
          all such assignments effected during such month, and will promptly
          provide the same to the Borrower and each of the Lenders.

               (d) Each Lender may transfer, grant or assign participations in
          all or any part of such Lender's interests hereunder pursuant to this
          Section 12.06(d) to any Person, PROVIDED that: (i) such Lender shall
          remain a "Lender" for all purposes of this Agreement and the
          transferee of such participation shall not constitute a "Lender"
          hereunder; and (ii) no participant under any such participation shall
          have rights to approve any amendment to or waiver of any of the Loan
          Documents except to the extent such amendment or waiver would (x)
          forgive any principal owing on any Indebtedness or extend the final
          maturity of the Loans, (y) reduce the interest rate (other than as a
          result of waiving the applicability of any post-default increases in
          interest rates) or fees applicable to any of the Commitments or Loans
          in which such participant is participating, or postpone the payment of
          any thereof, or (z) release any guarantor of the Indebtedness or
          release all or substantially all of the collateral (except as provided
          in the Loan Documents) supporting any of the Commitments or Loans in
          which such participant is participating. In the case of any such
          participation, the participant shall not have any rights under this
          Agreement or any of the other Loan Documents (the participant's rights
          against the granting Lender in respect of such participation to be
          those set forth in the agreement with such Lender creating such
          participation), and all amounts payable by the Borrower hereunder
          shall be determined as if such Lender had not sold such participation,
          PROVIDED that such participant shall be entitled to receive additional
          amounts under Article V on the same basis as if it were a Lender and
          be indemnified under Section 12.03 as if it were a Lender. In
          addition, each agreement creating any participation must include an
          agreement by the participant to be bound by the provisions of Section
          12.15.

               (e) The Lenders may furnish any information concerning the
          Borrower in the possession of the Lenders from time to time to
          assignees and participants (including prospective assignees and
          participants; provided that, such Persons agree to be bound by the
          provisions of Section 12.15 hereof.

               (f) Notwithstanding anything in this Section 12.06 to the
          contrary, any Lender may assign and pledge its Note to any Federal
          Reserve Bank or the United States Treasury as collateral security
          pursuant to Regulation A of the Board of Governors of the Federal
          Reserve System and any operating circular issued by such Federal
          Reserve System and/or such Federal Reserve Bank. No such

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          assignment and/or pledge shall release the assigning and/or pledging
          Lender from its obligations hereunder.

               (g) Notwithstanding any other provisions of this Section 12.06,
          no transfer or assignment of the interests or obligations of any
          Lender or any grant of participations therein shall be permitted if
          such transfer, assignment or grant would require the Borrower to file
          a registration statement with the SEC or to qualify the Loans under
          the "Blue Sky" laws of any state.

          Section 12.07 INVALIDITY. In the event that any one or more of the
provisions contained in any of the Loan Documents shall, for any reason, be held
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of the Notes, this
Agreement or any other Loan Document.

          Section 12.08 COUNTERPARTS. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and any of the parties hereto may execute this Agreement by
signing any such counterpart.

          Section 12.09 REFERENCES. The words "herein," "hereof," "hereunder"
and other words of similar import when used in this Agreement refer to this
Agreement as a whole, and not to any particular article, section or subsection.
Any reference herein to a Section shall be deemed to refer to the applicable
Section of this Agreement unless otherwise stated herein. Any reference herein
to an exhibit or schedule shall be deemed to refer to the applicable exhibit or
schedule attached hereto unless otherwise stated herein.

          Section 12.10 SURVIVAL. The obligations of the parties under Section
4.06, Article V, and Sections 11.05 and 12.03 shall survive the repayment of the
Loans and the termination of the Commitments. To the extent that any payments on
the Indebtedness or proceeds of any collateral are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid to
a trustee, debtor in possession, receiver or other Person under any bankruptcy
law, common law or equitable cause, then to such extent, the Indebtedness so
satisfied shall be revived and continue as if such payment or proceeds had not
been received and the Agent's and the Lenders' Liens, security interests,
rights, powers and remedies under this Agreement and each other Loan Document
shall continue in full force and effect. In such event, each Loan Document shall
be automatically reinstated and the Borrower shall take such action as may be
reasonably requested by the Agent and the Lenders to effect such reinstatement.

          Section 12.11 CAPTIONS. Captions and section headings appearing herein
are included solely for convenience of reference and are not intended to affect
the interpretation of any provision of this Agreement.

          Section 12.12 NO ORAL AGREEMENTS. THE LOAN DOCUMENTS EMBODY THE ENTIRE
AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES AND SUPERSEDE ALL OTHER
AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH PARTIES RELATING TO THE SUBJECT
MATTER HEREOF AND THEREOF. THE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF

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PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

          Section 12.13 GOVERNING LAW; SUBMISSION TO JURISDICTION.

               (a) THIS AGREEMENT, THE LOANS AND THE NOTES SHALL BE GOVERNED BY,
          AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS
          EXCEPT TO THE EXTENT THAT UNITED STATES FEDERAL LAW PERMITS ANY LENDER
          TO CHARGE INTEREST AT THE RATE ALLOWED BY THE LAWS OF THE STATE WHERE
          SUCH LENDER IS LOCATED. CHAPTER 346 OF THE TEXAS FINANCE CODE (WHICH
          REGULATES CERTAIN REVOLVING LOAN ACCOUNTS AND REVOLVING TRI-PARTY
          ACCOUNTS) SHALL NOT APPLY TO THIS AGREEMENT, THE LOANS, OR THE NOTES.

               (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN
          DOCUMENTS SHALL BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS OR OF
          THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF TEXAS, AND,
          BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER HEREBY
          ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF
          ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
          AFORESAID COURTS. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY
          OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING
          OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY
          NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING
          IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS
          NON-EXCLUSIVE AND DOES NOT PRECLUDE THE AGENT OR ANY LENDER FROM
          OBTAINING JURISDICTION OVER THE BORROWER IN ANY COURT OTHERWISE HAVING
          JURISDICTION.

               (c) EACH OF THE BORROWER AND EACH LENDER HEREBY (I) IRREVOCABLY
          AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW,
          TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
          AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN;
          (II) IRREVOCABLY WAIVE, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW,
          ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY
          SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES
          OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (III) CERTIFY THAT NO
          PARTY HERETO NOR

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          ANY REPRESENTATIVE OR AGENT OF COUNSEL FOR ANY PARTY HERETO HAS
          REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD
          NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
          WAIVERS, AND (IV) ACKNOWLEDGE THAT IT HAS BEEN INDUCED TO ENTER INTO
          THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS
          CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL
          WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION 12.13.

          Section 12.14 INTEREST. It is the intention of the parties hereto that
each Lender shall conform strictly to usury laws applicable to it. Accordingly,
if the transactions contemplated hereby would be usurious as to any Lender under
laws applicable to it (including the laws of the United States of America and
the State of Texas or any other jurisdiction whose laws may be mandatorily
applicable to such Lender notwithstanding the other provisions of this
Agreement), then, in that event, notwithstanding anything to the contrary in any
of the Loan Documents or any agreement entered into in connection with or as
security for the Loans, it is agreed as follows: (i) the aggregate of all
consideration which constitutes interest under law applicable to any Lender that
is contracted for, taken, reserved, charged or received by such Lender under any
of the Loan Documents or agreements or otherwise in connection with the Loans
shall under no circumstances exceed the maximum amount allowed by such
applicable law, and any excess shall be cancelled automatically and if
theretofore paid shall be credited by such Lender on the principal amount of the
Indebtedness (or, to the extent that the principal amount of the Indebtedness
shall have been or would thereby be paid in full, refunded by such Lender to the
Borrower), and (ii) in the event that the maturity of the Notes is accelerated
resulting from any Event of Default under this Agreement or otherwise, or in the
event of any required or permitted prepayment, then such consideration that
constitutes interest under law applicable to any Lender may never include more
than the maximum amount allowed by such applicable law, and excess interest, if
any, provided for in this Agreement or otherwise shall be cancelled
automatically by such Lender as of the date of such acceleration or prepayment
and, if theretofore paid, shall be credited by such Lender on the principal
amount of the Indebtedness (or, to the extent that the principal amount of the
Indebtedness shall have been or would thereby be paid in full, refunded by such
Lender to the Borrower). All sums paid or agreed to be paid to any Lender for
the use, forbearance or detention of sums due hereunder or under any other Loan
Document shall, to the extent permitted by law applicable to such Lender, be
amortized, prorated, allocated and spread throughout the full term of the Loans
evidenced by the Notes until payment in full so that the rate or amount of
interest on account of any Loans hereunder does not exceed the maximum amount
allowed by such applicable law. If at any time and from time to time (i) the
amount of interest payable to any Lender on any date shall be computed at the
Highest Lawful Rate applicable to such Lender pursuant to this Section 12.14 and
(ii) in respect of any subsequent interest computation period the amount of
interest otherwise payable to such Lender would be less than the amount of
interest payable to such Lender computed at the Highest Lawful Rate applicable
to such Lender, then the amount of interest payable to such Lender in respect of
such subsequent interest computation period shall continue to be computed at the
Highest Lawful Rate applicable to such Lender until the total amount of interest
payable to such Lender shall equal the total amount of interest which would have
been payable to such Lender if the total amount of interest had been computed
without giving effect to this

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Section 12.14. To the extent that Chapter 303 of the Texas Finance Code is
relevant for the purpose of determining the Highest Lawful Rate, such Lender
elects to determine the applicable rate ceiling under such Article by the weekly
ceiling from time to time in effect.

          Section 12.15 CONFIDENTIALITY. In the event that the Borrower or any
Guarantor (hereinafter called the "SUBJECT ENTITIES") provides to the Agent or
the Lenders written confidential information or, if communicated as
confidential, oral confidential information belonging to any Subject Entity, the
Agent and the Lenders shall thereafter maintain such information in confidence
in accordance with the standards of care and diligence that each utilizes in
maintaining its own confidential information. This obligation of confidence
shall not apply to such portions of the information which (i) are in the public
domain, (ii) hereafter become part of the public domain without the Agent or the
Lenders breaching their obligation of confidence to any Subject Entity, (iii)
are previously known by the Agent or the Lenders from some source other than any
Subject Entity, (iv) are hereafter developed by the Agent or the Lenders without
using a Subject Entity's information, (v) are hereafter obtained by or available
to the Agent or the Lenders from a third party who owes no obligation of
confidence to any Subject Entity with respect to such information, (vi) are
disclosed with a Subject Entity's consent, (vii) must be disclosed either
pursuant to any Governmental Requirement or to Persons regulating the activities
of the Agent or the Lenders, or (viii) as may be required by law or regulation
or order of any Governmental Authority in any judicial, arbitration or
governmental proceeding. Further, the Agent or a Lender may disclose any such
information to any other Lender, any independent petroleum engineers or
consultants, any independent certified public accountants, any legal counsel
employed by such Person in connection with this Agreement or any other Loan
Document, including without limitation, the enforcement or exercise of all
rights and remedies thereunder, or, subject to Section 12.06, any assignee or
participant (including prospective assignees to which the Borrower has consented
and participants) in the Loans; provided, however, that the Agent or the Lenders
shall receive a confidentiality agreement from the Person to whom such
information is disclosed such that said Person shall have the same obligation to
maintain the confidentiality of such information as is imposed upon the Agent or
the Lenders hereunder. Notwithstanding anything to the contrary provided herein,
this obligation of confidence shall cease three (3) years from the date the
information was furnished, unless the Borrower requests in writing at least
thirty (30) days prior to the expiration of such three year period, to maintain
the confidentiality of such information for an additional three year period.

          Section 12.16 EFFECTIVENESS. This Agreement shall be effective on the
Closing Date (the "EFFECTIVE DATE") upon its execution and delivery by Borrower
and SCI. Although Brigham Exploration, Brigham, Inc., Brigham Holdings I, LLC
and Brigham Holdings II, LLC, are not parties to this Agreement they are
executing this Agreement as Releasing Parties under Section 12.18 below and
Section 12.18 will become effective as to each Releasing Party as described in
Section 12.18(c).

          Section 12.17 EXCULPATION PROVISIONS. EACH OF THE PARTIES HERETO
SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS
OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS
AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND

                                       67
<PAGE>

KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS
BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE
NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF
THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY
ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING
THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO
AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF
ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE
BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE
PROVISION IS NOT "CONSPICUOUS."

          Section 12.18 RELEASE.

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

               (b) Borrower and each of the Guarantors represents and warrants
          that it has the full power and authority to perform the release
          granted in this Section 12.18 and that it has not in any manner made
          any assignment of any Released Claim to any third party.

               (c) The release granted in this Section 12.18 by each Releasing
          Party will be effective upon execution of this Agreement by such
          Releasing Party hereto.

               (d) Each party executing this Agreement understands and agrees
          that the release granted in this Section 12.18 is a full, final and
          complete release of the Released Claims and that such release may be
          pleaded as an absolute and final bar to any or all suits which may
          hereafter be filed or prosecuted by any one or more of the Releasing
          Parties or anyone claiming by, through or under any one or more of the
          Releasing Parties in respect of any of the matters released hereby,
          and that no recovery on account of the Released Claims may hereafter
          be had from any of

                                       68
<PAGE>

          the Released Parties; and that the consideration given for such
          release is not an admission of liability or fault on the part of any
          of the Released Parties (it being the express intent of the parties
          hereto to obtain peace of mind and avoid the expense and uncertainty
          of potential litigation), and that none of the Releasing Parties or
          those claiming by, through or under any of them will ever claim that
          it is.

               (e) The parties hereto acknowledge that the release granted by
          this Section 12.18 does not have any effect with respect to
          relationships between the Borrower and each of the Guarantors and the
          Lenders and the Agent other than in connection with the Lending
          Relationship.

                                       69
<PAGE>

          The parties hereto have caused this Agreement to be duly executed as
of the day and year first above written.

BORROWER:                          BRIGHAM OIL & GAS, L.P.

                                      By:  Brigham, Inc., its General Partner

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

                                      Address for Notices:

                                      6300 Bridge Point Parkway
                                      Building 2, Suite 500
                                      Austin, Texas 78730

                                      Telecopier No.:  (512) 427-3400
                                      Telephone No.:  (512) 427-3300

                                      Attention:  Curtis F. Harrell

GUARANTOR:                            BRIGHAM EXPLORATION COMPANY
(for purposes of Section 12.18)

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

GUARANTOR:                            BRIGHAM, INC.
(for purposes of Section 12.18)

                                      By:/S/ CURTIS F. HARRELL
                                      Name:  Curtis F. Harrell
                                      Title:  Chief Financial Officer

                                      70
<PAGE>

GUARANTOR:                            BRIGHAM HOLDINGS I, LLC
(for purposes of Section 12.18)

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

GUARANTOR:                            BRIGHAM HOLDINGS II, LLC
(for purposes of Section 12.18)

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

AGENT AND LENDER:                     SHELL CAPITAL INC.

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

                                      Address for Notices:

                                      910 Louisiana Street, Suite 5000
                                      Houston, Texas 77002-4916

                                      Telecopier No.:  (713) 241-5222
                                      Telephone No.:  (713) 241-4130

                                      Attention:  Robert L. Roberts

                                       71SUBORDINATED GUARANTY AGREEMENT

                                       BY

                           BRIGHAM EXPLORATION COMPANY

                                   in favor of

                          SHELL CAPITAL INC., AS AGENT
                             AND EACH OF THE LENDERS
                          PARTY TO THE CREDIT AGREEMENT

                                October 31, 2000

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

ARTICLE 1         GENERAL TERMS                                          1
---------         -------------
         Section 1.1     Terms Defined Above                             2
         Section 1.2     Certain Definitions                             2
         Section 1.3     Credit Agreement Definitions                    2
ARTICLE 2         THE GUARANTY                                           3
---------         ------------
         Section 2.1     Liabilities Guaranteed                          3
         Section 2.2     Nature of Guaranty                              3
         Section 2.3     Agent's Rights                                  3
         Section 2.4     Guarantor's Waivers                             3
         Section 2.5     Maturity of Liabilities; Payment                4
         Section 2.6     Agent's Expenses                                4
         Section 2.7     Liability                                       4
         Section 2.8     Events and Circumstances Not Reducing Or
                         Discharging Guarantor's Obligations             4
ARTICLE 3         REPRESENTATIONS, WARRANTIES AND COVENANTS              6
---------         -----------------------------------------
         Section 3.1     By Guarantor                                    6
         Section 3.2     No Representation by Lenders                   10
ARTICLE 4         SUBORDINATION OF INDEBTEDNESS                         11
---------         -----------------------------
         Section 4.1     Subordination of All Guarantor Claims          11
         Section 4.2     Claims in Bankruptcy                           11
         Section 4.3     Payments Held in Trust                         11
         Section 4.4     Liens Subordinate                              12
         Section 4.5     Guarantor's Enforcement Rights                 12
ARTICLE 5         CERTAIN ADDITIONAL COVENANTS                          12
---------         ----------------------------
         Section 5.1     AFFIRMATIVE COVENANTS                          12
         Financial Statements                                           12
         Section 5.2     NEGATIVE COVENANTS                             13
ARTICLE 6         MISCELLANEOUS                                         18
---------         -------------
         Section 6.1     Successors and Assigns                         18
         Section 6.2     Notices                                        18
         Section 6.3     Business and Financial Information             18
         Section 6.4     Construction                                   18
         Section 6.5     Invalidity                                     18
         Section 6.6     Entire Agreement                               19

<PAGE>

                         SUBORDINATED GUARANTY AGREEMENT

         THIS SUBORDINATED GUARANTY AGREEMENT (this "GUARANTY AGREEMENT") by
BRIGHAM EXPLORATION COMPANY (hereinafter called "GUARANTOR"), is in favor of
SHELL CAPITAL INC., as agent (the "AGENT") for the lenders (the "LENDERS") that
are or become parties to the Credit Agreement defined below, and the Lenders.

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, on even date herewith, BRIGHAM OIL & GAS, L.P., a Delaware
limited partnership (hereinafter called "BORROWER"), the Agent and the Lenders
have entered into that certain Subordinated Credit Agreement (as the same may be
amended from time to time, the "CREDIT AGREEMENT"); and

         WHEREAS, Borrower has entered into that certain Amended and Restated
Credit Agreement with Bank of Montreal, as agent (the "SENIOR AGENT") and the
Lenders that are or become parties thereto (the "SENIOR LENDER") dated as of
February 17, 2000 (as the same may be amended from time to time, the "SENIOR
CREDIT AGREEMENT"); and

         WHEREAS, pursuant to the terms of the Senior Credit Agreement,
Guarantor has entered into that certain Amended and Restated Guaranty Agreement
in favor of Senior Agent for the Senior Lender dated as of February 17, 2000 (as
the same may be amended from time to time, the "SENIOR GUARANTY AGREEMENT");

         WHEREAS, one of the terms and conditions stated in the Credit Agreement
for the making of the loans described therein is the execution and delivery to
the Agent for the benefit of the Lenders of this Guaranty Agreement;

         NOW, THEREFORE, (i) in order to comply with the terms and conditions of
the Credit Agreement, (ii) to induce the Lenders, at any time or from time to
time, to loan monies, with or without security to or for the account of Borrower
in accordance with the terms of the Credit Agreement, (iii) at the special
insistence and request of the Lenders, and (iv) for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Guarantor hereby agrees as follows:

                                    ARTICLE I

                                  GENERAL TERMS

         Section 1.1 TERMS DEFINED ABOVE. As used in this Guaranty Agreement,
the terms "Borrower", "Credit Agreement", "Guarantor", "Lenders", "Senior
Agent", "Senior Credit

                                       1
<PAGE>

Agreement", "Senior Guaranty Agreement" and "SeniorLender" shall have the
meanings indicated above.

         Section 1.2 CERTAIN DEFINITIONS. As used in this Guaranty Agreement,
the following terms shall have the following meanings, unless the context
otherwise requires:

         "GUARANTOR CLAIMS" shall have the meaning indicated in Section 4.1
hereof.

         "GUARANTY AGREEMENT" shall mean this Guaranty Agreement, as the same
         may from time to time be amended or supplemented.

         "LIABILITIES" shall mean

                  (a) any and all indebtedness, obligations and liabilities now
         or hereafter incurred by the Borrower pursuant to the Credit Agreement,
         including without limitation, the unpaid fees and principal of and
         interest on the Notes;

                  (b) payment of and performance of any and all present or
         future obligations of Borrower to a Lender according to the terms of
         any Hedging Agreement;

                  (c) any additional "Indebtedness", as defined in the Credit
         Agreement,

                  (d) all renewals, rearrangements, increases, extensions for
         any period, amendments or supplement in whole or in part of the Notes
         or any documents evidencing the above.

         "SUBORDINATION AGREEMENT" shall mean that certain Intercreditor and
         Subordination Agreement of even date herewith among the Senior Agent,
         Senior Lender, Agent, Lender Guarantor, each of the Subsidiary
         Guarantors and Borrower.

         "SUBSIDIARY GUARANTOR" shall mean a Subsidiary of the Guarantor which
         is itself a "Guarantor" under the Credit Agreement.

         Section 1.3 CREDIT AGREEMENT DEFINITIONS. Unless otherwise defined
herein, all terms beginning with a capital letter which are defined in the
Credit Agreement shall have the same meanings herein as therein.

                                       2
<PAGE>

                                   ARTICLE II

                                  THE GUARANTY

         Section 2.1 LIABILITIES GUARANTEED. Guarantor hereby irrevocably and
unconditionally guarantees the prompt payment at maturity of the Liabilities.

         Section 2.2 NATURE OF GUARANTY. This Guaranty Agreement is an absolute,
irrevocable, completed and continuing guaranty of payment and not a guaranty of
collection, and no notice of the Liabilities or any extension of credit already
or hereafter contracted by or extended to Borrower need be given to Guarantor.
This Guaranty Agreement may not be revoked by Guarantor and shall continue to be
effective with respect to debt under the Liabilities arising or created after
any attempted revocation by Guarantor and shall remain in full force and effect
until the Liabilities are paid in full and the Commitments are terminated,
notwithstanding that from time to time prior thereto no Liabilities may be
outstanding. Borrower and the Lenders may modify, alter, rearrange, extend for
any period and/or renew from time to time, the Liabilities, and the Lenders may
waive any Default or Events of Default without notice to the Guarantor and in
such event Guarantor will remain fully bound hereunder on the Liabilities. This
Guaranty Agreement shall continue to be effective or be reinstated, as the case
may be, if at any time any payment of the Liabilities is rescinded or must
otherwise be returned by any of the Lenders upon the insolvency, bankruptcy or
reorganization of Borrower or otherwise, all as though such payment had not been
made. This Guaranty Agreement may be enforced by the Agent and any subsequent
holder of any of the Liabilities and shall not be discharged by the assignment
or negotiation of all or part of the Liabilities. Guarantor hereby expressly
waives presentment, demand, notice of non-payment, protest and notice of protest
and dishonor, notice of Default or Event of Default, and also notice of
acceptance of this Guaranty Agreement, acceptance on the part of the Lenders
being conclusively presumed by the Lenders' request for this Guaranty Agreement
and delivery of the same to the Agent.

         Section 2.3 AGENT'S RIGHTS. Guarantor authorizes the Agent, without
notice or demand and without affecting Guarantor's liability hereunder, to take
and hold security for the payment of this Guaranty Agreement and/or the
Liabilities, and exchange, enforce, waive and release any such security; and to
apply such security and direct the order or manner of sale thereof as the Agent
in its discretion may determine; and to obtain a guaranty of the Liabilities
from any one or more Persons and at any time or times to enforce, waive,
rearrange, modify, limit or release any of such other Persons from their
obligations under such guaranties.

         Section 2.4       GUARANTOR'S WAIVERS.

         (a) GENERAL. Guarantor waives any right to require any of the Lenders
to (i) proceed against Borrower or any other person liable on the Liabilities,
(ii) enforce any of their rights against any other guarantor of the Liabilities
(iii) proceed or enforce any of their rights against or exhaust any security
given to secure the Liabilities (iv) have Borrower joined with Guarantor in any
suit arising out of this Guaranty Agreement and/or the Liabilities, or (v)
pursue any other remedy in the Lenders' powers whatsoever. The Lenders shall not
be required to mitigate damages or take any action to reduce, collect or enforce
the Liabilities. Guarantor waives any defense arising by reason of any
disability, lack of corporate authority or power, or other defense of Borrower
or any other guarantor of the Liabilities, and shall remain liable hereon
regardless of whether Borrower or any

                                       3
<PAGE>

other guarantor be found not liable thereon for any reason. Whether and when to
exercise any of the remedies of the Lenders under any of the Loan Documents
shall be in the sole and absolute discretion of the Agent, and no delay by the
Agent in enforcing any remedy, including delay in conducting a foreclosure sale,
shall be a defense to the Guarantor's liability under this Guaranty Agreement.

         (b) SUBROGATION. Until the Liabilities have been paid in full, the
Guarantor waives all rights of subrogation or reimbursement against the
Borrower, whether arising by contract or operation of law (including, without
limitation, any such right arising under any federal or state bankruptcy or
insolvency laws) and waives any right to enforce any remedy which the Lenders
now have or may hereafter have against the Borrower, and waives any benefit or
any right to participate in any security now or hereafter held by the Agent or
any Lender.

         Section 2.5 MATURITY OF LIABILITIES; PAYMENT. Guarantor agrees that if
the maturity of any of the Liabilities is accelerated by bankruptcy or
otherwise, such maturity shall also be deemed accelerated for the purpose of
this Guaranty Agreement without demand or notice to Guarantor. Guarantor will,
forthwith upon notice from the Agent, pay to the Agent the amount due and unpaid
by Borrower and guaranteed hereby. The failure of the Agent to give this notice
shall not in any way release Guarantor hereunder.

         Section 2.6 AGENT'S EXPENSES. If Guarantor fails to pay the Liabilities
after notice from the Agent of Borrower's failure to pay any Liabilities at
maturity, and if the Agent obtains the services of an attorney for collection of
amounts owing by Guarantor hereunder, or obtaining advice of counsel in respect
of any of their rights under this Guaranty Agreement, or if suit is filed to
enforce this Guaranty Agreement, or if proceedings are had in any bankruptcy,
probate, receivership or other judicial proceedings for the establishment or
collection of any amount owing by Guarantor hereunder, or if any amount owing by
Guarantor hereunder is collected through such proceedings, Guarantor agrees to
pay to the Agent the Agent's reasonable attorneys' fees.

         Section 2.7 LIABILITY. It is expressly agreed that the liability of the
Guarantor for the payment of the Liabilities guaranteed hereby shall be primary
and not secondary.

         Section 2.8 EVENTS AND CIRCUMSTANCES NOT REDUCING OR DISCHARGING
GUARANTOR'S OBLIGATIONS. Guarantor hereby consents and agrees to each of the
following to the fullest extent permitted by law, and agrees that Guarantor's
obligations under this Guaranty Agreement shall not be released, diminished,
impaired, reduced or adversely affected by any of the following, and waives any
rights (including without limitation rights to notice) which Guarantor might
otherwise have as a result of or in connection with any of the following:

         (a) MODIFICATIONS, ETC. Any renewal, extension, modification, increase,
         decrease, alteration or rearrangement of all or any part of the
         Liabilities, or of the Notes, or the Credit Agreement or any instrument
         executed in connection therewith, or any contract or

                                       4
<PAGE>

understanding between Borrower and any of the Lenders, or any other Person,
pertaining to the Liabilities;

         (b) ADJUSTMENT, ETC. Any adjustment, indulgence, forbearance or
         compromise that might be granted or given by any of the Lenders to
         Borrower or Guarantor or any Person liable on the Liabilities;

         (c) CONDITION OF BORROWER OR GUARANTOR. The insolvency, bankruptcy
         arrangement, adjustment, composition, liquidation, disability,
         dissolution, death or lack of power of Borrower or Guarantor or any
         other Person at any time liable for the payment of all or part of the
         Liabilities; or any dissolution of Borrower or Guarantor, or any sale,
         lease or transfer of any or all of the assets of Borrower or Guarantor,
         or any changes in the shareholders, partners, or members of Borrower or
         Guarantor; or any reorganization of Borrower or Guarantor;

         (d) INVALIDITY OF LIABILITIES. The invalidity, illegality or
         unenforceability of all or any part of the Liabilities, or any document
         or agreement executed in connection with the Liabilities, for any
         reason whatsoever, including without limitation the fact that the
         Liabilities, or any part thereof, exceed the amount permitted by law,
         the act of creating the Liabilities or any part thereof is ULTRA VIRES,
         the officers or representatives executing the documents or otherwise
         creating the Liabilities acted in excess of their authority, the
         Liabilities violate applicable usury laws, the Borrower has valid
         defenses, claims or offsets (whether at law, in equity or by agreement)
         which render the Liabilities wholly or partially uncollectible from
         Borrower, the creation, performance or repayment of the Liabilities (or
         the execution, delivery and performance of any document or instrument
         representing part of the Liabilities or executed in connection with the
         Liabilities, or given to secure the repayment of the Liabilities) is
         illegal, uncollectible, legally impossible or unenforceable, or the
         Credit Agreement or other documents or instruments pertaining to the
         Liabilities have been forged or otherwise are irregular or not genuine
         or authentic;

         (e) RELEASE OF OBLIGORS. Any full or partial release of the liability
         of Borrower on the Liabilities or any part thereof, of any
         co-guarantors, or any other Person now or hereafter liable, whether
         directly or indirectly, jointly, severally, or jointly and severally,
         to pay, perform, guarantee or assure the payment of the Liabilities or
         any part thereof, it being recognized, acknowledged and agreed by
         Guarantor that Guarantor may be required to pay the Liabilities in full
         without assistance or support of any other Person, and Guarantor has
         not been induced to enter into this Guaranty Agreement on the basis of
         a contemplation, belief, understanding or agreement that other parties
         other than the Borrower will be liable to perform the Liabilities, or
         the Lenders will look to other parties to perform the Liabilities.

         (f) OTHER SECURITY. The taking or accepting of any other security,
         collateral or guaranty, or other assurance of payment, for all or any
         part of the Liabilities;

                                       5
<PAGE>

         (g) RELEASE OF COLLATERAL, ETC. Any release, surrender, exchange,
         subordination, deterioration, waste, loss or impairment (including
         without limitation negligent, willful, unreasonable or unjustifiable
         impairment) of any collateral, property or security, at any time
         existing in connection with, or assuring or securing payment of, all or
         any part of the Liabilities;

         (h) CARE AND DILIGENCE. The failure of the Lenders or any other Person
         to exercise diligence or reasonable care in the preservation,
         protection, enforcement, sale or other handling or treatment of all or
         any part of such collateral, property or security;

         (i) STATUS OF LIENS. The fact that any collateral, security, security
         interest or lien contemplated or intended to be given, created or
         granted as security for the repayment of the Liabilities shall not be
         properly perfected or created, or shall prove to be unenforceable or
         subordinate to any other security interest or lien, it being recognized
         and agreed by Guarantor that Guarantor is not entering into this
         Guaranty Agreement in reliance on, or in contemplation of the benefits
         of, the validity, enforceability, collectibility or value of any of the
         collateral for the Liabilities;

         (j) PAYMENTS RESCINDED. Any payment by Borrower to the Lenders is held
         to constitute a preference under the bankruptcy laws, or for any reason
         the Lenders are required to refund such payment or pay such amount to
         Borrower or someone else; or

         (k) OTHER ACTIONS TAKEN OR OMITTED. Any other action taken or omitted
         to be taken with respect to the Credit Agreement, the Liabilities, or
         the security and collateral therefor, whether or not such action or
         omission prejudices Guarantor or increases the likelihood that
         Guarantor will be required to pay the Liabilities pursuant to the terms
         hereof; it being the unambiguous and unequivocal intention of Guarantor
         that Guarantor shall be obligated to pay the Liabilities when due,
         notwithstanding any occurrence, circumstance, event, action, or
         omission whatsoever, whether contemplated or uncontemplated, and
         whether or not otherwise or particularly described herein, except for
         the full and final payment and satisfaction of the Liabilities.

                                   ARTICLE III

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

         Section 3.1 BY GUARANTOR. In order to induce the Lenders to accept this
Guaranty Agreement, Guarantor represents and warrants to the Lenders (which
representations and warranties will survive the creation of the Liabilities and
any extension of credit thereunder) that:

                                       6
<PAGE>

         (a) BENEFIT TO GUARANTOR. Guarantor's guaranty pursuant to this
         Guaranty Agreement reasonably may be expected to benefit, directly or
         indirectly, Guarantor.

         (b) CORPORATE EXISTENCE. Guarantor is a corporation duly organized,
         legally existing and in good standing under the laws of the State of
         Delaware and is duly qualified in all jurisdictions wherein the
         property owned or the business transacted by it makes such
         qualification necessary.

         (c) CORPORATE POWER AND AUTHORIZATION. Guarantor is duly authorized and
         empowered to execute, deliver and perform this Guaranty Agreement and
         all corporate action on Guarantor's part requisite for the due
         execution, delivery and performance of this Guaranty Agreement has been
         duly and effectively taken.

         (d) BINDING OBLIGATIONS. This Guaranty Agreement constitutes valid and
         binding obligations of Guarantor, enforceable in accordance with its
         terms (except that enforcement may be subject to any applicable
         bankruptcy, insolvency or similar laws generally affecting the
         enforcement of creditors' rights) or by general principles of equity.

         (e) NO CONSENT. Guarantor's execution, delivery and performance of this
         Guaranty Agreement does not require the consent or approval of any
         other Person, including without limitation any regulatory authority or
         governmental body of the United States or any state thereof or any
         political subdivision of the United States or any state thereof.

         (f) SOLVENCY. The Guarantor hereby represents that (i) it is not
         insolvent as of the date hereof and will not be rendered insolvent as a
         result of this Guaranty Agreement, (ii) it is not engaged in business
         or a transaction, or about to engage in a business or a transaction,
         for which any property or assets remaining with such Guarantor is
         unreasonably small capital, and (iii) it does not intend to incur, or
         believe it will incur, debts that will be beyond its ability to pay as
         such debts mature.

         (g) FINANCIAL CONDITION. The audited consolidated balance sheet of the
         Guarantor and its Consolidated Subsidiaries as at December 31, 1999 and
         the related consolidated statement of income, stockholders' equity and
         cash flow of the Guarantor and its Consolidated Subsidiaries for the
         fiscal year ended on said date, with the opinion thereon of Price
         Waterhouse heretofore furnished to each of the Lenders and the
         unaudited consolidated balance sheet of the Guarantor and its
         Consolidated Subsidiaries as at June 30, 2000 and their related
         consolidated statements of income, stockholders' equity and cash flow
         of the Guarantor and its Consolidated Subsidiaries for the six-month
         period ended on such date heretofore furnished to the Agent, are
         complete and correct and fairly present the consolidated financial
         condition of the Guarantor and its Consolidated Subsidiaries as at said
         dates and the results of its operations for the fiscal year and the
         six-month period on said dates, all in accordance with GAAP, as applied
         on a consistent basis (subject, in the case of the interim financial
         statements, to normal year-end adjustments). Neither the Guarantor nor

                                       7
<PAGE>

         any of its Subsidiaries has on the Closing Date any material Debt,
         Trade Payables, contingent liabilities, liabilities for taxes, unusual
         forward or long-term commitments or unrealized or anticipated losses
         from any unfavorable commitments, except as referred to or reflected or
         provided for in the Financial Statements or in Schedule 7.02 of the
         Credit Agreement. Since December 31, 1999, there has been no change or
         event having a Material Adverse Effect. Since the date of the Financial
         Statements, neither the business nor the Properties of the Guarantor
         and its Consolidated Subsidiaries, taken as a whole, have been
         materially and adversely affected as a result of any fire, explosion,
         earthquake, flood, drought, windstorm, accident, strike or other labor
         disturbance, embargo, requisition or taking of Property or cancellation
         of contracts, permits or concessions by any Governmental Authority,
         riot, activities of armed forces or acts of God or of any public enemy.

         (h) LITIGATION. Except as disclosed to the Lenders in Schedule 7.03 of
         the Credit Agreement, at the Closing Date there is no litigation,
         legal, administrative or arbitral proceeding, investigation or other
         action of any nature pending or, to the knowledge of the Guarantor
         threatened against or affecting the Guarantor or any of its
         Subsidiaries which both (a) involves the possibility of any judgment or
         liability against the Guarantor or any of its Subsidiaries not fully
         covered by insurance (except for normal deductibles), and (b) would be
         more likely than not to have a Material Adverse Effect.

         (i) NO BREACH. Neither the execution and delivery of this Guaranty
         Agreement, nor compliance with the terms and provisions hereof will
         conflict with or result in a breach of, or require any consent which
         has not been obtained as of the Closing Date under, the respective
         charter or by-laws of the Guarantor or any of its Subsidiaries or any
         Governmental Requirement or any material agreement or instrument to
         which the Guarantor or any of its Subsidiaries is a party or by which
         it is bound or to which it or its Properties are subject, or constitute
         a default under any such agreement or instrument, or result in the
         creation or imposition of any Lien upon any of the material revenues or
         assets of the Guarantor or any of its Subsidiaries pursuant to the
         terms of any such agreement or instrument other than the Liens created
         by the Loan Documents.

         (j)      ERISA.

                  (1) The Guarantor, its Subsidiaries and each ERISA Affiliate
         have complied in all material respects with ERISA and, where
         applicable, the Code regarding each Plan.

                 (2) Each Plan is, and has been, maintained in substantial
         compliance with ERISA and, where applicable, the Code.

                  (3) No act, omission or transaction has occurred which could
         result in imposition on the Guarantor, any of its Subsidiaries or any
         ERISA Affiliate (whether directly or indirectly) of an amount of
         $100,000 or more as (i) either a civil penalty assessed pursuant

                                       8
<PAGE>

         to section 502(c), (i) or (l) of ERISA or a tax imposed pursuant to
         Chapter 43 of Subtitle D of the Code or (ii) breach of fiduciary duty
         liability damages under section 409 of ERISA.

                  (4) No Plan (other than a defined contribution plan) or any
         trust created under any such Plan has been terminated since September
         2, 1974. No liability to the PBGC in excess of $100,000 (other than for
         the payment of current premiums which are not past due) by the
         Guarantor, any of its Subsidiaries or any ERISA Affiliate has been or
         is expected by the Guarantor, any of its Subsidiaries or any ERISA
         Affiliate to be incurred with respect to any Plan. No ERISA Event with
         respect to any Plan has occurred which could reasonably expected to
         result in liabilities of $100,000 or more.

                  (5) Full payment when due has been made of all amounts which
         the Guarantor, any of its Subsidiaries or any ERISA Affiliate is
         required under the terms of each Plan or applicable law to have paid as
         contributions to such Plan, and no accumulated funding deficiency in an
         amount of $100,000 or more (as defined in section 302 of ERISA and
         section 412 of the Code), whether or not waived, exists with respect to
         any Plan.

                  (6) The actuarial present value of the benefit liabilities
         under each Plan which is subject to Title IV of ERISA does not, as of
         the end of the Guarantor's most recently ended fiscal year, exceed the
         current value of the assets (computed on a plan termination basis in
         accordance with Title IV of ERISA) of such Plan allocable to such
         benefit liabilities by $100,000 or more. The term "actuarial present
         value of the benefit liabilities" shall have the meaning specified in
         section 4041 of ERISA.

                  (7) None of the Guarantor, any of its Subsidiaries or any
         ERISA Affiliate sponsors, maintains, or contributes to an employee
         welfare benefit plan, as defined in section 3(1) of ERISA, including,
         without limitation, any such plan maintained to provide benefits to
         former employees of such entities, that may not be terminated by the
         Guarantor, any of its Subsidiaries or any ERISA Affiliate in its sole
         discretion at any time without any material liability.

                  (8) None of the Guarantor, any of its Subsidiaries or any
         ERISA Affiliate sponsors, maintains or contributes to, or has at any
         time in the preceding six calendar years, sponsored, maintained or
         contributed to, any Multiemployer Plan.

                  (9) None of the Guarantor, any of its Subsidiaries or any
         ERISA Affiliate is required to provide security under section
         401(a)(29) of the Code due to a Plan amendment that results in an
         increase in current liability for the Plan.

         (k) TAXES. Except as set out in Schedule 7.09 of the Credit Agreement,
         each of the Guarantor and its Subsidiaries has filed all United States
         Federal income tax returns and all other tax returns which are required
         to be filed by it and has paid all material taxes due pursuant to such
         returns or pursuant to any assessment received by the Guarantor or any
         of

                                       9
<PAGE>

         its Subsidiaries, except for any taxes which are being contested in
         good faith and by proper proceedings and against which adequate
         reserves are being maintained. The charges, accruals and reserves on
         the books of the Guarantor and its Subsidiaries in respect of taxes and
         other governmental charges are, in the opinion of the Guarantor,
         adequate. No tax lien has been filed and, to the knowledge of the
         Guarantor, no claim is being asserted with respect to any such tax, fee
         or other charge, except for any taxes, fees or other charges which are
         being contested in good faith and by proper proceedings and against
         which adequate reserves are being maintained.

         (l) TITLE TO OWNERSHIP INTEREST IN GENERAL PARTNER AND LIMITED PARTNERS
         OF BORROWER. The Guarantor has good and unencumbered title to all of
         the capital stock of the General Partner of the Borrower and, directly
         or indirectly, all of the ownership interests in the limited partners
         of the Borrower.

         (m) INVESTMENT COMPANY ACT. Neither the Guarantor nor any of its
         Subsidiaries is an "investment company" or a company "controlled" by an
         "investment company," within the meaning of the Investment Company Act
         of 1940, as amended.

         (n) PUBLIC UTILITY HOLDING COMPANY ACT. Neither the Guarantor nor any
         of its Subsidiaries is a "holding company," or a "subsidiary company"
         of a "holding company," or an "affiliate" of a "holding company" or of
         a "subsidiary company" of a "holding company," or a "public utility"
         within the meaning of the Public Utility Holding Company Act of 1935,
         as amended.

         (o) SUBSIDIARIES. Except as set forth on Schedule 1 hereto or as
         permitted by Section 9.16 of the Credit Agreement, the Guarantor has no
         Subsidiaries.

         (p) COMPLIANCE WITH THE LAW. Neither the Guarantor nor any of its
         Subsidiaries has violated any Governmental Requirement or failed to
         obtain any license, permit, franchise or other governmental
         authorization necessary for the ownership of any of its Properties or
         the conduct of its business, which violation or failure would have (in
         the event such violation or failure were asserted by any Person through
         appropriate action) a Material Adverse Effect.

         Section 3.2 NO REPRESENTATION BY LENDERS. Neither the Lenders nor any
other Person has made any representation, warranty or statement to the Guarantor
in order to induce the Guarantor to execute this Guaranty Agreement.

                                       10
<PAGE>

                                   ARTICLE IV

                                  SUBORDINATION

         Section 4.1  SUBORDINATION.

         (a) SUBORDINATION OF ALL GUARANTOR CLAIMS. As used herein, the term
         "GUARANTOR CLAIMS" shall mean all debts and liabilities of Borrower or
         any Subsidiary of the Borrower to Guarantor, whether such debts and
         liabilities now exist or are hereafter incurred or arise, or whether
         the obligation of Borrower or such Subsidiary thereon be direct,
         contingent, primary, secondary, several, joint and several, or
         otherwise, and irrespective of whether such debts or liabilities be
         evidenced by note, contract, open account, or otherwise, and
         irrespective of the person or persons in whose favor such debts or
         liabilities may, at their inception, have been, or may hereafter be
         created, or the manner in which they have been or may hereafter be
         acquired by Guarantor. The Guarantor Claims shall include without
         limitation all rights and claims of Guarantor against Borrower or any
         Subsidiary of the Borrower arising as a result of subrogation or
         otherwise as a result of Guarantor's payment of all or a portion of the
         Liabilities. Until the Liabilities shall be paid and satisfied in full
         and Guarantor shall have performed all of its obligations hereunder,
         Guarantor shall not receive or collect, directly or indirectly, from
         Borrower or any Subsidiary of the Borrower or any other party any
         amount upon the Guarantor Claims.

         (b) SUBORDINATION OF THIS GUARANTY AGREEMENT. The payment and
         performance of this Guaranty Agreement is subordinated pursuant to the
         terms and provisions of the Subordination Agreement.

         Section 4.2 CLAIMS IN BANKRUPTCY. In the event of receivership,
bankruptcy, reorganization, arrangement, debtor's relief, or other insolvency
proceedings involving Borrower or any Subsidiary of the Borrower, as debtor, the
Lenders shall have the right to prove their claim in any proceeding, so as to
establish their rights hereunder and receive directly from the receiver, trustee
or other court custodian, dividends and payments which would otherwise be
payable upon Guarantor Claims. Guarantor hereby assigns such dividends and
payments to the Lenders. Should the Agent or any Lender receive, for application
upon the Liabilities, any such dividend or payment which is otherwise payable to
Guarantor, and which, as between Borrower or any Subsidiary of the Borrower and
Guarantor, shall constitute a credit upon the Guarantor Claims, then upon
payment in full of the Liabilities, Guarantor shall become subrogated to the
rights of the Lenders to the extent that such payments to the Lenders on the
Guarantor Claims have contributed toward the liquidation of the Liabilities, and
such subrogation shall be with respect to that proportion of the Liabilities
which would have been unpaid if the Agent or a Lender had not received dividends
or payments upon the Guarantor Claims.

         Section 4.3 PAYMENTS HELD IN TRUST. In the event that notwithstanding
Sections 4.1 and 4.2 above, Guarantor should receive any funds, payments, claims
or distributions which is prohibited

                                       11
<PAGE>

by such Sections, Guarantor agrees to hold in trust for the Lenders an amount
equal to the amount of all funds, payments, claims or distributions so received,
and agrees that it shall have absolutely no dominion over the amount of such
funds, payments, claims or distributions except to pay them promptly to the
Agent, and Guarantor covenants promptly to pay the same to the Agent.

         Section 4.4 LIENS SUBORDINATE. Guarantor agrees that any liens,
security interests, judgment liens, charges or other encumbrances upon
Borrower's or any Subsidiary of the Borrower's assets securing payment of the
Guarantor Claims shall be and remain inferior and subordinate to any liens,
security interests, judgment liens, charges or other encumbrances upon
Borrower's or any Subsidiary of the Borrower's assets securing payment of the
Liabilities, regardless of whether such encumbrances in favor of Guarantor, the
Agent or the Lenders presently exist or are hereafter created or attach.

         Section 4.5 GUARANTOR'S ENFORCEMENT RIGHTS. Without the prior written
consent of the Lenders, Guarantor shall not (a) exercise or enforce any
creditor's right it may have against the Borrower or any Subsidiary of the
Borrower, or (b) foreclose, repossess, sequester or otherwise take steps or
institute any action or proceeding (judicial or otherwise, including without
limitation the commencement of or joinder in any liquidation, bankruptcy,
rearrangement, debtor's relief or insolvency proceeding) to enforce any lien,
mortgages, deeds of trust, security interest, collateral rights, judgments or
other encumbrances on assets of Borrower or any Subsidiary of the Borrower held
by Guarantor.

                                    ARTICLE V

                          CERTAIN ADDITIONAL COVENANTS

         Section 5.1       AFFIRMATIVE COVENANTS.

                  FINANCIAL STATEMENTS. The Guarantor shall cause the Borrower
to deliver as and when required, the financial statements and other information
called for in Section 8.01 of the Credit Agreement and Guarantor shall:

         (a) NOTICE OF DEFAULT. Promptly after the Guarantor knows that any
         default in any covenant herein has occurred, the Guarantor will give
         notice of such default to the Agent, describing the same in reasonable
         detail and the action the Guarantor proposes to take with respect
         thereto.

         (b) PAYMENT OF TRADE PAYABLES. The Guarantor will pay and cause all of
         its Subsidiaries to pay all of their respective Trade Payables now or
         hereafter incurred within 60 days of the date of invoice, unless
         subject to legal offset or unless being contested in good faith by

                                       12
<PAGE>

         appropriate proceedings and reserves adequate under GAAP shall have
         been established therefor.

         Section 5.2 NEGATIVE COVENANTS. The Guarantor covenants and agrees
that, so long as any of the Commitments are in effect and until payment in full
of the Liabilities hereunder, all interest thereon and all other amounts payable
by the Guarantor hereunder, without the prior written consent of the Majority
Lenders:

         (a) DEBT. The Guarantor will not and will not permit any of its
         Subsidiaries to incur, create, assume or suffer to exist any Debt,
         except:

                  (1) the Notes or other Indebtedness arising under the Loan
         Documents or any guaranty of or suretyship arrangement for the Notes or
         other Indebtedness arising under the Loan Documents;

                  (2) Debt existing on the Closing Date which is reflected in
         the Financial Statements or is disclosed in Schedule 9.01 to the Credit
         Agreement, and any renewals or extensions (but not increases) thereof;

                  (3) Debt permitted under the Credit Agreement;

                  (4) Debt owing to the Borrower, the Guarantor or a Subsidiary
         Guarantor which (other than Debt owing to the Borrower) is subordinated
         to the Indebtedness as provided in the Guaranty Agreement of the
         Guarantor or such Subsidiary Guarantor;

                  (5) Debt of the Guarantor not described in Sections 5.2 (1)
         through (4) above which together with all Debt of the Borrower allowed
         under Section 9.01(h) of the Credit Agreement does not exceed
         $1,000,000 at any one time outstanding; and

                  (6) The Senior Indebtedness and any other Debt arising under
         or otherwise in relation to the Senior Loan Documents.

         (b) LIENS. The Guarantor will not and will not permit any of its
         Subsidiaries to create, incur, assume or permit to exist any Lien on
         any of its Properties (now owned or hereafter acquired), except:

                  (1)      Liens securing the payment of any Indebtedness;

                  (2)      Excepted Liens;

                  (3)      Liens created, incurred, assumed or permitted to
                           exist by the Borrower and the Borrower's Subsidiaries
                           as permitted under the Credit Agreement; and

                                       13
<PAGE>

                  (4)      Liens securing the payment of the Senior
                           Indebtedness.

         (c) INVESTMENTS, LOANS AND ADVANCES. The Guarantor will not and will
         not permit any of its Subsidiaries to remain outstanding any loans or
         advances to or investments in any Person, except that the foregoing
         restriction shall not apply to:

                  (1)      investments, loans or advances by the Guarantor or a
                           Subsidiary Guarantor (other than a Subsidiary of the
                           Borrower) in or to the Borrower, the Guarantor or a
                           Subsidiary Guarantor; and

                  (2)      any other investments, loans and advances by the
                           Borrower or a Subsidiary of the Borrower as permitted
                           under Section 9.03 of the Credit Agreement.

         (d) DIVIDENDS, DISTRIBUTIONS AND REDEMPTIONS. The Guarantor will not
         declare or pay any dividend, purchase, redeem or otherwise acquire for
         value any of its stock now or hereafter outstanding, return any capital
         to its stockholders or make any distribution of its assets to its
         stockholders; provided that Guarantor may pay dividends on its
         preferred equity securities so long as they are paid in kind and not in
         cash.

         (e) SALES AND LEASEBACKS. The Guarantor will not and will not permit
         any of its Subsidiaries to enter into any arrangement, directly or
         indirectly, with any Person whereby such Person shall sell or transfer
         any of its Property, whether now owned or hereafter acquired, and
         whereby such Person shall then or thereafter rent or lease as lessee
         such Property or any part thereof or other Property which such Person
         intends to use for substantially the same purpose or purposes as the
         Property sold or transferred.

         (f) NATURE OF BUSINESS. The Guarantor will not allow any material
         change to be made in the character of its business as presently
         conducted.

         (g) LIMITATION ON LEASES. The Guarantor will not and will not permit
         any of its Subsidiaries to create, incur, assume or suffer to exist any
         obligation for the payment of rent or hire of Property of any kind
         whatsoever (real or personal including capital leases but excluding
         leases of Hydrocarbon Interests and the equipment used thereon), under
         leases or lease agreements which would cause the aggregate amount of
         all payments made by the Guarantor and its Subsidiaries pursuant to all
         such leases or lease agreements to exceed $2,000,000 in any period of
         twelve consecutive calendar months during the life of such leases.

         (h) MERGERS, ETC. The Guarantor will not and will not permit any of its
         Subsidiaries to merge into or with or consolidate with any other Person
         or sell, lease or otherwise dispose of (whether in one transaction or
         in a series of transactions) all or substantially all of its Property
         or assets to any other Person unless the Guarantor, the Borrower or any
         Subsidiary

                                       14
<PAGE>

         Guarantor whose Guaranty Agreement is in full force and effect is the
         surviving entity and no Default exists or will be created thereby.

         (i) ERISA COMPLIANCE. The Guarantor will not and will not permit any of
         its Subsidiaries to at any time:

                  (1) Engage in, or permit any ERISA Affiliate to engage in, any
         transaction in connection with which the Guarantor, any of its
         Subsidiaries or any ERISA Affiliate could be subjected to either a
         civil penalty assessed pursuant to section 502(c), (i) or (l) of ERISA
         or a tax imposed by Chapter 43 of Subtitle D of the Code in excess of
         $100,000;

                  (2) Terminate, or permit any ERISA Affiliate to terminate, any
         Plan in a manner, or take any other action with respect to any Plan,
         which could reasonably be expected to result in any liability of the
         Guarantor, any of its Subsidiaries or any ERISA Affiliate to the PBGC
         in excess of $100,000;

                  (3) Fail to make, or permit any ERISA Affiliate to fail to
         make, full payment when due of all amounts which under the provisions
         of any Plan, agreement relating thereto or applicable law, the
         Guarantor, any of its Subsidiaries or any ERISA Affiliate is required
         to pay as contributions thereto;

                  (4) Permit to exist, or allow any ERISA Affiliate to permit to
         exist, any accumulated funding deficiency in excess of $100,000 within
         the meaning of Section 302 of ERISA or section 412 of the Code, whether
         or not waived, with respect to any Plan;

                  (5) Permit, or allow any ERISA Affiliate to permit, the
         actuarial present value of the benefit liabilities under any Plan
         maintained by the Guarantor, any of its Subsidiaries or any ERISA
         Affiliate which is regulated under Title IV of ERISA to exceed the
         current value of the assets (computed on a plan termination basis in
         accordance with Title IV of ERISA) of such Plan allocable to such
         benefit liabilities by an amount in excess of $100,000. The term
         "actuarial present value of the benefit liabilities" shall have the
         meaning specified in section 4041 of ERISA;

                  (6) Contribute to or assume an obligation to contribute to, or
         permit any ERISA Affiliate to contribute to or assume an obligation to
         contribute to, any Multiemployer Plan;

                  (7) Acquire, or permit any ERISA Affiliate to acquire, an
         interest in any Person that causes such Person to become an ERISA
         Affiliate with respect to the Borrower or any ERISA Affiliate if such
         Person sponsors, maintains or contributes to, or at any time in the
         six-year period preceding such acquisition has sponsored, maintained,
         or contributed to, (a) any Multiemployer Plan, or (b) any other Plan
         that is subject to Title IV of ERISA under which the actuarial present
         value of the benefit liabilities under such Plan exceeds the current

                                       15
<PAGE>

         value of the assets (computed on a plan termination basis in accordance
         with Title IV of ERISA) of such Plan allocable to such benefit
         liabilities;

                  (8) Incur, or permit any ERISA Affiliate to incur, a liability
         to or on account of a Plan under sections 515, 4062, 4063, 4064, 4201
         or 4204 of ERISA which in the aggregate for all such liability exceeds
         $100,000;

                  (9) Contribute to or assume an obligation to contribute to, or
         permit any ERISA Affiliate to contribute to or assume an obligation to
         contribute to, any employee welfare benefit plan, as defined in section
         3(1) of ERISA, including, without limitation, any such plan maintained
         to provide benefits to former employees of such entities, that may not
         be terminated by such entities in their sole discretion at any time
         without any material liability; or

                  (10) Amend or permit any ERISA Affiliate to amend, a Plan
         resulting in an increase in current liability such that the Guarantor,
         any of its Subsidiaries or any ERISA Affiliate is required to provide
         security to such Plan under section 401(a)(29) of the Code.

         (j) SALE OR DISCOUNT OF RECEIVABLES. The Guarantor will not and will
         not permit any of its Subsidiaries to discount or sell (with or without
         recourse) any of its notes receivable or accounts receivable.

         (k) CAPITAL EXPENDITURES. The Guarantor will not and will not permit
         Borrower to exceed the capital expenditure limitations provided in
         Section 9.20 of the Credit Agreement.

        (l) ENVIRONMENTAL MATTERS. The Guarantor will not and will not permit
         any of its Subsidiaries to cause or permit any of its Property to be in
         violation of, or do anything or permit anything to be done which will
         subject any such Property to any remedial obligations under any
         Environmental Laws, assuming disclosure to the applicable Governmental
         Authority of all relevant facts, conditions and circumstances, if any,
         pertaining to such Property where such violations or remedial
         obligations would have a Material Adverse Effect.

         (m) TRANSACTIONS WITH AFFILIATES. The Guarantor will not and will not
         permit any of its Subsidiaries to enter into any transaction,
         including, without limitation, any purchase, sale, lease or exchange of
         Property or the rendering of any service, with any Affiliate unless
         such transactions are otherwise not in violation of the Credit
         Agreement, are in the ordinary course of its business and are upon fair
         and reasonable terms no less favorable to it (or, if the Borrower is
         involved, no less favorable to the Borrower) than it would obtain in a
         comparable arm's length transaction with a Person not an Affiliate.

                                       16
<PAGE>

         (n) SUBSIDIARIES. The Guarantor will not and will not permit any of its
         Subsidiaries to, create any additional Subsidiaries except for the
         Subsidiaries of the Borrower as permitted by the Credit Agreement.

         (o) NEGATIVE PLEDGE AGREEMENTS. The Guarantor will not and will not
         permit any of its Subsidiaries to create, incur, assume or suffer to
         exist any contract, agreement or understanding (other than the Loan
         Documents and the Senior Loan Documents) which in any way prohibits or
         restricts the granting, conveying, creation or imposition of any Lien
         on any of its Property or which requires the consent of or notice to
         other Persons in connection therewith.

         (p) CAPITAL STOCK OF GENERAL PARTNER OF BORROWER. The Guarantor will
         not permit any of the capital stock of the General Partner of the
         Borrower or any ownership interest in any limited partner of the
         Borrower to be owned or controlled by any Person other than the
         Guarantor or Brigham Inc..

         (q) CURRENT RATIO. The Guarantor will not permit its ratio of (i)
         consolidated current assets of the Guarantor and its Consolidated
         Subsidiaries (including, without limitation, any unused and available
         Aggregate Commitments) to (ii) their consolidated current liabilities
         (excluding the Indebtedness) to be less than 1.0 to 1.0 at any time.

         (r) INTEREST COVERAGE RATIO. The Guarantor will not permit its Interest
         Coverage Ratio as of the end of any fiscal quarter of the Guarantor
         (calculated quarterly at the end of each fiscal quarter) to be less
         than the ratio set forth below for such period. INTEREST COVERAGE RATIO
         shall mean the ratio of (i) EBITDA to (ii) the sum of all required
         payments of interest (whether paid in cash or in kind) during such
         period on borrowed money:

                  (i)      not less than .75 to 1.0 for the twelve (12) month
                           period ending September 30, 2000;

                  (ii)     not less than .80 to 1.0 for the twelve (12) month
                           period ending December 31, 2000;

                  (iii)    not less than .90 to 1.0 for the twelve (12) month
                           period ending March 31, 2001;

                  (iv)     not less than 1.3 to 1.0 for the twelve (12) month
                           period ending June 30, 2001;

                  (v)      not less than 1.5 to 1.0 for the twelve (12) month
                           period ending September 30, 2001;

                                       17
<PAGE>

                  (vi)     not less than 1.7 to 1.0 for the twelve (12) month
                           period ending December 31, 2001;

                  (vii)    not less than 2.0 to 1.0 for the twelve (12) month
                           period ending March 31, 2002;

                  (viii)   not less than 2.25 to 1.0 for the twelve (12) month
                           period ending June 30, 2002; and

                  (ix)     thereafter, not less than 2.50 to 1.0 for the twelve
                           (12) month period ending September 30, 2002, and each
                           twelve (12) month period ending at the end of each
                           fiscal quarter of Guarantor.

                                   ARTICLE VI

                                  MISCELLANEOUS

         Section 6.1 SUCCESSORS AND ASSIGNS. This Guaranty Agreement is and
shall be, in every particular, available to the successors and assigns of the
Lenders and is and shall always be fully binding upon the legal representatives,
heirs, successors and assigns of Guarantor, notwithstanding that some or all of
the monies, the repayment of which this Guaranty Agreement applies, may be
actually advanced after any bankruptcy, receivership, reorganization, death,
disability or other event affecting Guarantor.

         Section 6.2 NOTICES. Any notice or demand to Guarantor under or in
connection with this Guaranty Agreement may be given and shall conclusively be
deemed and considered to have been given and received in accordance with Section
12.02 of the Credit Agreement, addressed to Guarantor at the address on the
signature page hereof or at such other address provided to the Agent in writing.

         Section 6.3 BUSINESS AND FINANCIAL INFORMATION. Subject to any
applicable confidentiality agreements, the Guarantor will promptly furnish to
the Agent and the Lenders from time to time upon request such information
regarding the business and affairs and financial condition of the Guarantor and
its subsidiaries as the Agent and the Lenders may reasonably request.

         Section 6.4 CONSTRUCTION. This Guaranty Agreement is a contract made
under and shall be construed in accordance with and governed by the laws of the
State of Texas.

         Section 6.5 INVALIDITY. In the event that any one or more of the
provisions contained in this Guaranty Agreement shall, for any reason, be held
invalid, illegal or unenforceable in any

                                       18
<PAGE>

respect, such invalidity, illegality or unenforceability shall not affect any
other provision of this Guaranty Agreement.

         Section 6.6 ENTIRE AGREEMENT. THIS WRITTEN GUARANTY AGREEMENT EMBODIES
THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE LENDERS AND THE GUARANTOR AND
SUPERSEDES ALL OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH PARTIES RELATING
TO THE SUBJECT MATTER HEREOF AND THEREOF. THIS WRITTEN GUARANTY AGREEMENT
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         WITNESS THE EXECUTION HEREOF, as of this the 31st day of October, 2000.

                                     BRIGHAM EXPLORATION COMPANY

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

                                     Address for Notices:

                                     6300 Bridge Point Parkway
                                     Building 2, Suite 500
                                     Austin, Texas  78730

                                     Telecopier No.: (512) 427-3400
                                     Telephone No.: (512) 427-3300
                                     Attention:

                                       19
<PAGE>

                                   SCHEDULE I

                       SUBSIDIARIES OF BRIGHAM EXPLORATION

         Brigham Exploration has the following Subsidiaries:

         1.       Brigham, Inc., a Nevada corporation, all of whose shares are
                  owned by Brigham Exploration.

         2.       Brigham Holdings I, LLC, a Nevada limited liability company,
                  whose only member is Brigham Exploration.

         3.       Brigham Holdings II, LLC, a Nevada limited liability company,
                  whose only member is Brigham, Inc.

         4.       Borrower, a Delaware limited partnership, whose only General
                  Partner is Brigham, Inc., and whose only limited partners are
                  Brigham Holdings I, LLC and Brigham Holdings II, LLC.

                                       20

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