Exhibit 10.2


 


EXCHANGE AGREEMENT


 


This Exchange Agreement
(this “Agreement”) is made and entered into on December [__], 2014, by and between Emerald Oil, Inc., a Delaware corporation
(the “Company”), and the undersigned holder (the “Holder”) of 2.00% Convertible Senior Notes due 2019 (the
“Convertible Notes”) issued by the Company.


 


RECITALS


 


WHEREAS, the Holder
currently holds $[______] principal amount of the Convertible Notes;


 


WHEREAS, the Holder
desires to exchange $[______] of its Convertible Notes (the “Exchange Notes”) for shares of the Company’s common
stock, par value $0.001 per share (“Common Stock”), on the terms and conditions set forth in this Agreement (the “Exchange”);


 


WHEREAS, the Company
desires to issue to the Holder that number of shares of the Company’s Common Stock determined as set forth in Section 1.1(b)
below in exchange for the Convertible Notes in the Exchange;


 


NOW, THEREFORE, in
consideration of the premises and the agreements set forth below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:


 


ARTICLE
I



Exchange


 


Section 1.1           Exchange
and Sale of Convertible Notes for Common Stock.


 


(a)          Upon
the terms and subject to the conditions of this Agreement, at the Closing (as defined herein), the Company shall (i) issue, subject
to Section 1.2 hereof, to the Holder, and the Holder agrees to accept from the Company, the number of shares of Common Stock determined
in accordance with the terms of subsection (b) hereof in exchange for the Exchange Notes, and (ii) pay in cash to the Holder any
unpaid interest on the Exchange Notes being exchanged that has accrued through the date of the Closing.


 


(b)          At
the Closing, the Holder will receive a number of shares of Common Stock calculated as $[______].


 


Section 1.2           Cancellation
of Convertible Notes.  Pursuant to the Indenture dated as of March 24, 2014 between the Company and U.S. Bank National
Association, as Trustee, governing the Convertible Notes (the “Indenture”), the Holder hereby agrees that the aggregate
principal amount and all accrued unpaid interest on the Exchange Notes shall be cancelled on the completion of the Exchange. The
Holder acknowledges that the cancellation of the Exchange Notes shall have the effects specified in the Indenture.


 




    	 



    	 



    

 


Section 1.3           Section
3(a)(9) Exchange.  In consideration of and for the Exchange, the Company agrees to issue to the Holder the Exchange
Shares. The issuance of the Exchange Shares to the Holder will be made without registration of such Exchange Shares under the Securities
Act of 1933, as amended (together with the rules and regulations thereunder, the “Securities Act”), in reliance upon
the exemption therefrom provided by Section 3(a)(9) of the Securities Act. The Holder acknowledges that the Company is relying
upon the truth and accuracy of, and the Holder’s compliance with, its representations, warranties, agreements, acknowledgments
and understandings set forth herein in order to determine the availability of such exemptions and the eligibility of the Holder
for the Exchange.


 


Section 1.4           Closing
Mechanics.  The closing of the transactions contemplated by this Agreement shall occur on 9:00 a.m., Central Standard
Time, three Scheduled Trading Days after the Averaging Period or at such other time on the same date or such other date as the
parties may agree in writing (such time and date, the “Closing Date”). Prior to the Closing Date, Holder shall instruct
its broker or other participant in the Fast Automated Securities Transfer Program of The Depository Trust Company (“DTC”)
to transfer and deliver the Exchange Notes to the Trustee for purposes of cancellation. On the Closing Date, the Company will deliver
the unpaid accrued interest to the Holder by wire transfer, and the shares of Common Stock to be issued in the Exchange shall be
transmitted by the transfer agent of the Company to the Holder by crediting the account of Holder’s prime broker with DTC
through DTC’s Deposit/Withdrawal at Custodian (“DWAC”) program. The Company acknowledges and agrees that the
shares of Common Stock to be issued to the Holder will not contain any restrictive legend and will be freely transferable without
restriction by the Holder (assuming such Holder is not an affiliate of the Company).


 


Section 1.5           Conditions
to Closing.


 


(a)          The
obligation of the Holder hereunder to consummate the transactions contemplated hereby at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Holder’s sole
benefit and may be waived by the Holder at any time in its sole discretion by providing the Company with prior written notice thereof:


 


(i)          The
Company shall have caused its transfer agent to credit to Holder or its designee the Exchange Shares;


 


(ii)         The
Company shall have submitted an additional share listing application for the Exchange Shares with the NYSE MKT on or prior to the
Closing Date and shall cause the Exchange Shares to be approved by the NYSE MKT for listing on the Closing Date or as soon as practicable
thereafter; and


 


(iii)        The
representations and warranties of the Company in this Agreement shall be true and correct in all material respects on and as of
the Closing Date with the same effect as if made on the Closing Date and the Company has complied in all material respects with
all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date.


 




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(b)          The
obligation of the Company hereunder to consummate the transactions contemplated hereby at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion by providing the Holder with prior written notice
thereof:


 


(i)          The
Holder shall have delivered, or caused to be delivered, to the Company (x) the Exchange Notes being exchanged pursuant to this
Agreement in accordance with the written instructions of the Company and (y) all documentation related to the right, title and
interest in and to all of the Exchange Notes, and whatever documents of conveyance or transfer may be necessary or reasonably desirable
to transfer to and confirm in the Company all right, title and interest in and to (free and clear of any mortgage, lien, pledge,
charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto) the Exchange
Notes.


 


(ii)         The
representations and warranties of the Holder in this Agreement shall be true and correct in all material respects on and as of
the Closing Date with the same effect as if made on the Closing Date and that the Holder shall have complied in all material respects
with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date.


 


ARTICLE
II



Representations and Warranties of the Holder


 


The Holder hereby makes
the following representations and warranties, each of which is true and correct on the date hereof and the Closing Date and shall
survive the Closing Date and the transactions contemplated hereby to the extent set forth herein:


 


Section 2.1           Existence
and Power.


 


(a)          The
Holder is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has
the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate
the transactions contemplated hereby.


 


(b)          The
execution of this Agreement by the Holder and the consummation by the Holder of the transactions contemplated hereby do not and
will not constitute or result in a breach, violation, conflict or default under any note, bond, mortgage, deed, indenture, lien,
instrument, contract, agreement, lease or license to which the Holder is a party, whether written or oral, express or implied,
or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative
or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Holder or on the part of any
other party thereto or cause the acceleration or termination of any obligation or right of the Holder, except for such breaches,
conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on the ability of the Holder to perform its obligations hereunder. As used in this Agreement, the term “Material
Adverse Effect” shall mean a material adverse effect on the business, condition (financial or otherwise), properties or results
of operations of the party, or an event, change or occurrence that would materially adversely affect the ability of the party to
perform its obligations under this Agreement which would limit the Holder’s power to transfer the Exchange Notes hereunder.


 




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Section 2.2           Valid
and Enforceable Agreement; Authorization.  This Agreement has been duly executed and delivered by the Holder and
constitutes a legal, valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms, except
that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
or relating to enforcement of creditors’ rights generally, and (b) general principles of equity.


 


Section 2.3           Title
to Exchange Notes.  The Holder has good and valid title to the Exchange Notes in the aggregate principal amount set
forth in the recitals to this Agreement, free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance,
title retention agreement, option, equity or other adverse claim thereto. The Holder has not, in whole or in part, (i) assigned,
transferred, hypothecated, pledged or otherwise disposed of the Exchange Notes or its rights in such Exchange Notes, or (ii) given
any person or entity any transfer order, power of attorney or other authority of any nature whatsoever with respect to such Exchange
Notes which would limit the Holder’s power to transfer the Exchange Notes hereunder. Holder’s representations in this
paragraph 2.3 are qualified in their entirety to the extent that Holder has entered into any margin or prime brokerage account
arrangements in the ordinary course of business.


 


Section 2.4           Investment
Decision.  The Holder is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act and was not organized for the purpose of acquiring the Exchange Shares. The Holder is knowledgeable, sophisticated
and experienced in business and financial matters and has previously invested in securities similar to the Exchange Shares. The
Holder is able to bear the economic risk of its investment in the Exchange Shares and is presently able to afford the complete
loss of such investment.


 


The Holder (or its
authorized representative) has had the opportunity to review the Company’s filings with the Securities and Exchange Commission
(the “Commission”), including, without limitation, the Company’s Annual Report on Form 10-K for the year ended
December 31, 2013; the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and
September 30, 2014; the Company’s current reports on Form 8-K filed on January 10, 2014, February 13, 2014, March 17, 2014,
March 19, 2014, March 24, 2014, June 12, 2014, September 4, 2014, September 12, 2014, October 7, 2014 and December 1, 2014; and
the Company’s Proxy Statement filed on April 24, 2014 and supplemented on May 8, 2014 (all of such filings with the Commission
referred to, collectively, as the “SEC Documents”). The Holder has had such opportunity to ask questions of the Company
and its representative and to obtain from representatives of the Company such information as is necessary to permit it to evaluate
the merits and risks of its investment in the Company. The Holder has independently, without reliance upon any representatives
of the Company and based on such information as the Holder deemed appropriate, made its own analysis and decision to enter into
this Agreement. The Holder has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able
to evaluate the risks involved in the Exchange pursuant hereto and to make an informed investment decision with respect to such
exchange.


 




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The Holder acknowledges
that the Company is relying on the truth and accuracy of the foregoing representations and warranties in the offering of the Exchange
Shares to the Holder without having first registered the Exchange Shares under the Securities Act.


 


Section 2.5           Affiliate
Status.  The Holder is not, and has not been during the preceding three months, an “affiliate” of the
Company as such term is defined in Rule 144 under the Securities Act.


 


Section 2.6           Professional
Advice.  With respect to the tax, accounting and other economic considerations involved in the Exchange, the Holder
is not relying on the Company or any of its affiliates, and the Holder has carefully considered and has, to the extent the Holder
believes such discussion is necessary, discussed with the Holder’s professional legal, tax, accounting and financial advisors
the implications of the Exchange for the Holder’s particular tax, accounting and financial situation.


 


Section 2.7           No
Solicitation.  The Holder was not solicited by anyone on behalf of the Company to enter into this transaction.


 


ARTICLE
III



Representations, Warranties and Covenants of the Company


 


The Company hereby
makes the following representations, warranties, and covenants each of which is true and correct on the date hereof and shall survive
the date of the Closing and the transactions contemplated hereby to the extent set forth herein.


 


Section 3.1           Existence
and Power.


 


(a)          The
Company is duly incorporated, validly existing and in good standing under the laws of Delaware, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted. The Company has the requisite power
and authority to execute and deliver this Agreement, to perform its obligations hereunder and consummate the transactions contemplated
hereby.


 


(b)          The
execution of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby (i) does
not require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental authority
or court, or body or arbitrator having jurisdiction over the Company, other than the NYSE MKT and DTC; and (ii) does not and will
not constitute or result in a breach, violation or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract,
agreement, lease or license, whether written or oral, express or implied, or with the certificate of incorporation or bylaws of
the Company, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative
or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Company or on the part of any
other party thereto or cause the acceleration or termination of any obligation or right of the Company or any other party thereto,
except for such breaches, violations or defaults which would not reasonably be expected to, singly or in the aggregate, result
in a Material Adverse Effect (as defined above) on the ability of the Company to perform its obligations hereunder.


 




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Section 3.2           Valid
and Enforceable Agreement; Authorization.  This Agreement has been duly executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms,
except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
or relating to enforcement of creditors’ rights generally, and (b) general principles of equity.


 


Section 3.3           Valid
Issuance of the Exchange Shares.  The Exchange Shares, when issued and delivered in accordance with the terms and
for the consideration set forth in this Agreement, will be validly issued, fully paid and non-assessable and free of restrictions
on transfer (other than restrictions on transfer under applicable federal and state securities laws) and liens or encumbrances
created by or imposed by the Holder. Assuming the accuracy of the representations of the Holder in Article II of this Agreement,
the Exchange Shares will be issued in compliance in all material respects with all applicable federal and state securities laws.
The Company has a sufficient number of authorized and unissued shares of Common Stock to consummate the Exchange.


 


Section 3.4           
Disclosure. On or before the open of regular trading on the New York Stock Exchange on December 12, 2014, the Company shall
issue a publicly available press release or file with the Commission a Current Report on Form 8-K disclosing the Exchange and other
non-public material matters, if any, that have been disclosed to the Holder by the Company or its advisers in connection with the
Exchange (to the extent not previously publicly disclosed). Without the prior written consent of the Holder, the Company shall
not disclose the name of the Holder in any filing, announcement, release or otherwise in connection with this Agreement, unless
such disclosure is requested or required by applicable law, rule regulation or legal process.


 


ARTICLE
IV



Miscellaneous Provisions


 


Section 4.1           Survival
of Representations and Warranties.  The agreements of the Company, as set forth herein, and the respective representations
and warranties of Holder and the Company as set forth herein in Articles 2 and 3, respectively, shall survive the Closing Date.


 


Section 4.2           Notice.  Any
notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail
(postage prepaid) with return receipt requested or sent by reputable overnight courier service (charges prepaid):


 


(a)          if
to the Holder, at its address as follows:


 





	 	 	 
	 	 	 
	 	 	 







 




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(b)          If
to the Company, at its address, as follows:


 


Emerald Oil, Inc.

1600 Broadway, Suite 1360

Denver, Colorado 80202

Attention: General Counsel


 


Each party hereto by
notice to the other party may designate additional or different addresses for subsequent notices or communications. All notices
and communications will be deemed to have been duly given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and
the next business day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.


 


Section 4.3           Entire
Agreement.  This Agreement and the other documents and agreements executed in connection with the Exchange embody
the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior
and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda
and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject
matter, including, without limitation, any term sheets, emails or draft documents.


 


Section 4.4           Assignment;
Binding Agreement.  This Agreement and the various rights and obligations arising hereunder shall inure to the benefit
of and be binding upon the parties hereto and their successors and assigns.


 


Section 4.5           Counterparts.  This
Agreement may be executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original, but
all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered
by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party.


 


Section 4.6           Remedies
Cumulative.  Except as otherwise provided herein, all rights and remedies of the parties under this Agreement are
cumulative and without prejudice to any other rights or remedies available at law.


 


Section 4.7           Governing
Law.  This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of
the State of New York, without reference to its conflicts of law rules.  Any right to trial by jury with respect to any
action or proceeding arising in connection with this Agreement is hereby waived by the parties hereto.  The Company and
the Holder agree that any suit or proceeding arising in respect of this Agreement will be tried exclusively in the U.S. District
Court for the Southern District of New York, and the Company and the Holder agree to submit to the jurisdiction of, and to venue
in, such court.


 




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Section 4.8           No
Third Party Beneficiaries or Other Rights.  Nothing herein shall grant to or create in any person not a party hereto,
or any such person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue
any party to this Agreement with respect thereto.


 


Section 4.9           Waiver;
Consent.  This Agreement may not be changed, amended, terminated, augmented, rescinded or discharged (other than
in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto. No waiver of any of the
provisions or conditions of this Agreement or any of the rights of a party hereto shall be effective or binding unless such waiver
shall be in writing and signed by the party claimed to have given or consented thereto. Except to the extent otherwise agreed in
writing, no waiver of any term, condition or other provision of this Agreement, or any breach thereof shall be deemed to be a waiver
of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision,
nor shall any forbearance to seek a remedy for any noncompliance or breach be deemed to be a waiver of a party’s rights and
remedies with respect to such noncompliance or breach.


 


Section 4.10         Word
Meanings.  The words such as “herein,” “hereinafter,” “hereof” and “hereunder”
refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires.
The singular shall include the plural, and vice versa, unless the context otherwise requires. The masculine shall include the feminine
and neuter, and vice versa, unless the context otherwise requires.


 


Section 4.11         No
Broker.  Neither party has engaged any third party as broker or finder or incurred or become obligated to pay any
broker’s commission or finder’s fee in connection with the transactions contemplated by this Agreement other than such
fees and expenses for which that particular party shall be solely responsible.


 


Section 4.12         Further
Assurances.  The Holder and the Company each hereby agree to execute and deliver, or cause to be executed and delivered,
such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection
with the transactions contemplated by this Agreement.


 


Section 4.13         Costs
and Expenses.  The Holder and the Company shall each pay their own respective costs and expenses incurred in connection
with the negotiation, preparation, execution and performance of this Agreement, including, but not limited to, attorneys’
fees.


 


Section 4.14         Headings.  The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.


 


Section 4.15         Severability.
If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.


 


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IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be executed as of the date first above written.


 


	 	HOLDER:
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 


	 	EMERALD OIL, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 


Signature Page to Exchange
Agreement


 




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