Document:

Exhibit 10.3

 

SPX Corporation

 

2002 STOCK COMPENSATION PLAN

 

TIME-BASED RESTRICTED STOCK AGREEMENT

20XX AWARD FOR NON-EMPLOYEE DIRECTORS

 

THIS AGREEMENT (the “Agreement”) is made between SPX CORPORATION, a Delaware corporation (the “Company”), and the Recipient pursuant to the SPX Corporation 2002 Stock Compensation Plan, as amended, and related plan documents (the “Plan”) in combination with an SPX Restricted Stock Summary (the “Award Summary”) to be displayed at the Fidelity website.  The Award Summary, which identifies the person to whom the Restricted Stock is granted (the “Recipient”) and specifies the date (the “Award Date”) and other details of this grant of Restricted Stock, and the electronic acceptance of this Agreement (which also is to be displayed at the Fidelity website), are incorporated herein by reference.  Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Plan.  The parties hereto agree as follows:

 

1.             Grant of Restricted Stock.  The Company hereby grants to the Recipient                            shares of Restricted Stock (the “Award”), subject to the terms and conditions of the Plan and this Agreement.  The Recipient must accept the Award within ninety (90) days after notification that the Award is available for acceptance and in accordance with the instructions provided by the Company.  The Award automatically will be rescinded upon the action of the Company, in its discretion, if the Award is not accepted within ninety (90) days after notification is sent to the Recipient indicating availability for acceptance.

 

2.             Restrictions.  The Restricted Stock may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, whether voluntarily or involuntarily or by operation of law, until the termination of the Period of Restriction specified in Section 4 below or as otherwise provided in the Plan or this Agreement.  Except for such restrictions, and the provisions relating to dividends paid during the Period of Restriction as described in Section 7, the Recipient will be treated as the owner of the shares of Restricted Stock and shall have all of the rights of a shareholder, including, but not limited to, the right to vote such shares.

 

3.             Restricted Stock Certificates.  The Restricted Stock Award may be evidenced in such manner as the Board shall determine.  The stock certificate(s) representing the Restricted Stock may be issued or held in book entry form promptly following the acceptance of this Agreement.  If a stock certificate is issued, it shall be delivered to the Secretary of the Company or such other custodian as may be designated by the Company, to be held until the end of the Period of Restriction or until the Restricted Stock is forfeited.  The certificates representing shares of Restricted Stock granted pursuant to this Agreement, if issued, shall bear a legend in substantially the form set forth below:

 

The sale or other transfer of the shares of stock represented by this certificate, whether voluntary, involuntary or by operation of law, is subject to certain restrictions on transfer set forth in the SPX Corporation 2002 Stock

 

 

Compensation Plan, as amended and restated effective May 3, 2012, rules and administration adopted pursuant to such Plan, and a Restricted Stock award agreement with an Award Date of [             ].  A copy of the Plan, such rules and such Restricted Stock award agreement may be obtained from the Secretary of SPX Corporation.

 

4.             Period of Restriction.  Subject to the provisions of the Plan and this Agreement, unless vested or forfeited earlier as described in Section 5 of this Agreement, the Restricted Stock awarded hereunder shall become fully vested and freely transferable at the close of business on the day before the date of the Company’s 20XX regular annual meeting of shareholders, if the Non-Employee Director remains a member of the Board through that time.

 

5.             Forfeiture.  Any unvested shares of Restricted Stock shall be forfeited and cancelled if the Non-Employee Director ceases to be a member of the Board for any reason other than death or Disability (as defined below) before the Company’s next regular annual meeting of shareholders in the year following the Award Date.  Notwithstanding the foregoing, any unvested shares of Restricted Stock (which have not been forfeited and cancelled pursuant to the preceding sentence) shall vest upon the earlier of (i) the death or Disability of the Non-Employee Director or (ii) a Change of Control (as defined below).  For purposes of this Agreement, “Disability” means, in the written opinion of a qualified physician selected by the Board, the Recipient is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, unable to perform the functions of a member of the Board.

 

A “Change of Control” shall be deemed to have occurred if:

 

(a)           Any “Person” (as defined below), excluding for this purpose (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company, and (iii) any entity organized, appointed or established for or pursuant to the terms of any such plan that acquires beneficial ownership of Common Stock, is or becomes the “Beneficial Owner” (as defined below) of twenty percent (20%) or more of the Common Stock then outstanding; provided, however, that no Change of Control shall be deemed to have occurred as the result of an acquisition of Common Stock by the Company which, by reducing the number of shares outstanding, increases the proportionate beneficial ownership interest of any Person to twenty percent (20%) or more of the Common Stock then outstanding, but any subsequent increase in the beneficial ownership interest of such a Person in Common Stock shall be deemed a Change of Control; and provided further that if the Board determines in good faith that a Person who has become the Beneficial Owner of Common Stock representing twenty percent (20%) or more of the Common Stock then outstanding has inadvertently reached that level of ownership interest, and if such Person divests as promptly as practicable a sufficient number of such shares so that the Person no longer has a beneficial ownership interest in twenty percent (20%) or more of the Common Stock then outstanding, then no Change of Control shall be deemed to have occurred.  For purposes of this paragraph (a), the following terms shall have the meanings set forth below:

 

2

 

(i)            “Person” shall mean any individual, firm, limited liability company, corporation or other entity, and shall include any successor (by merger or otherwise) of any such entity.

 

(ii)           “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(iii)         A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any securities:

 

(A)          which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly (determined as provided in Rule 13d-3 under the Exchange Act);

 

(B)          which such Person or any of such Person’s Affiliates or Associates has (1) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange; or (2) the right to vote pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security if the agreement, arrangement or understanding to vote such security (a) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (b) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or

 

(C)          which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to subparagraph (a)(iii)(B)(2), above) or disposing of any securities of the Company.

 

Notwithstanding anything in this “Beneficial Ownership” definition to the contrary, the phrase “then outstanding,” when used with reference to a Person’s beneficial ownership of securities of the Company, shall mean the number of such

 

3

 

securities then issued and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be deemed to own beneficially hereunder.

 

(b)           During any period of two (2) consecutive years (not including any period prior to the acceptance of this Agreement), individuals who at the beginning of such two-year period constitute the Board and any new director or directors (except for any director designated by a person who has entered into an agreement with the Company to effect a transaction described in paragraph (a), above, or paragraph (c), below) whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board; or

 

(c)           Approval by the shareholders and consummation of (or if such approval is not required, the consummation of) (i) a plan of complete liquidation of the Company, (ii) an agreement for the sale or disposition of the Company or all or substantially all of the Company’s assets, (iii) a plan of merger or consolidation of the Company with any other corporation, or (iv) a similar transaction or series of transactions involving the Company (any transaction described in parts (i) through (iv) of this paragraph (c) being referred to as a “Business Combination”), in each case unless after such a Business Combination the shareholders of the Company immediately prior to the Business Combination continue to own at least eighty percent (80%) of the voting securities of the new (or continued) entity immediately after such Business Combination, in substantially the same proportion as their ownership of the Company immediately prior to such Business Combination.

 

Notwithstanding any provision of this Agreement to the contrary, a Change of Control shall not include any transaction described in paragraph (a) or (c), above, where, in connection with such transaction, the Recipient and/or any party acting in concert with the Recipient substantially increases his or its, as the case may be, ownership interest in the Company or a successor to the Company (other than through conversion of prior ownership interests in the Company and/or through equity awards received entirely as compensation for past or future personal services).  Further, notwithstanding the foregoing, any transaction under active consideration by the Company’s Board of Directors within the 30-day period prior to the Award Date shall not constitute a Change of Control under this Agreement.

 

6.             Settlement Following Change of Control.  Notwithstanding any provision of this Agreement to the contrary, in connection with or after the occurrence of a Change of Control as defined in Section 5 of this Agreement, the Company may, in its sole discretion, fulfill its obligation with respect to all or any portion of the Restricted Stock that ceases to be subject to a Period of Restriction in conjunction with the Change of Control by:

 

(a)           delivery of (i) the number of shares of Common Stock that have ceased to be subject to a Period of Restriction or (ii) such other ownership interest as such shares of Common Stock may be converted into by virtue of the Change of Control transaction;

 

(b)           payment of cash in an amount equal to the Fair Market Value of the Common Stock at that time; or

 

4

 

(c)           delivery of any combination of shares of Common Stock (or other converted ownership interest) and cash having an aggregate Fair Market Value equal to the fair market value of the Common Stock at that time.

 

7.             Dividends Paid During Period of Restriction.  If cash dividends are paid with respect to any shares of Restricted Stock, such dividends shall be deposited in the Recipient’s name in an escrow or similar account maintained by the Company for this purpose.  Such dividends shall be subject to the same Period of Restriction as the shares of Restricted Stock to which they relate.  The dividends shall be paid to the Recipient in cash (subject to all applicable tax withholding), without adjustment for interest, as soon as administratively practicable after the date the related shares of Restricted Stock vest.  If the related shares of Restricted Stock are forfeited, then any dividends related to such shares shall also be forfeited on the same date.  If any dividends on Restricted Stock are paid in shares of Common Stock, the dividend shares shall be subject to the same restrictions as the shares of Restricted Stock with respect to which they were paid, and shall vest or be forfeited in the same manner as the underlying Restricted Stock.

 

8.             Adjustment in Capitalization.  In the event of any change in the Common Stock of the Company through stock dividends or stock splits, a corporate split-off or split-up, or recapitalization, merger, consolidation, exchange of shares, or a similar event, the number of shares of Restricted Stock subject to this Agreement shall be equitably adjusted by the Board.

 

9.             Delivery of Stock Certificates.  Subject to the requirements of Section 10 below, as promptly as practicable after shares of Restricted Stock cease to be subject to a Period of Restriction in accordance with Section 4 of this Agreement, the Company shall cause to be issued and delivered to the Recipient, the Recipient’s legal representative, or a brokerage account for the benefit of the Recipient, as the case may be, certificates for the vested shares of Common Stock.

 

10.          Securities Laws.  This Award is a private offer that may be accepted only by a Recipient who is a director of the Company or a Subsidiary of the Company and who satisfies the eligibility requirements outlined in the Plan and the Board’s administrative procedures.  If a Registration Statement under the Securities Act of 1933, as amended, is not in effect with respect to the shares of Common Stock to be issued pursuant to this Agreement, the Recipient hereby represents that he or she is acquiring the shares of Common Stock for investment and with no present intention of selling or transferring them and that he or she will not sell or otherwise transfer the shares except in compliance with all applicable securities laws and requirements of any stock exchange on which the shares of Common Stock may then be listed.

 

11.          No Legal Rights.  Neither the Plan nor this Agreement confers on the Recipient any legal or equitable rights (other than those related to the Restricted Stock Award) against the Company or any subsidiary or directly or indirectly gives rise to any cause of action in law or in equity against the Company or any subsidiary.

 

12.          Plan Terms and Board Authority.  This Agreement and the rights of the Recipient hereunder are subject to all of the terms and conditions of the Plan, as it may be amended from time to time, as well as to such rules and regulations as the Board may adopt for administration of the Plan.  It is expressly understood that the Board is authorized to administer, construe and make all determinations necessary or appropriate for the administration of the Plan and this

 

5

 

Agreement, all of which shall be binding upon Recipient.  Any inconsistency between this Agreement and the Plan shall be resolved in favor of the Plan.  The Recipient hereby acknowledges receipt of a copy of the Plan and this Agreement.

 

13.          Compliance with Code Section 409A.  Notwithstanding any provision of the Plan or this Agreement to the contrary, the Award is intended to be exempt from or, in the alternative, comply with Code Section 409A and the interpretive guidance thereunder, including the exceptions for stock rights and short-term deferrals.  The Plan and the Agreement will be construed and interpreted in accordance with such intent.  References in the Plan and this Agreement to “termination of Service” and similar terms shall mean a “separation from service” within the meaning of that term under Code Section 409A.  Any payment or distribution that is to be made to a Recipient who is a “specified employee” of the Company within the meaning of that term under Code Section 409A and as determined by the Board, on account of a “separation from service” under Code Section 409A, may not be made before the date which is six months after the date of such “separation from service,” unless the payment or distribution is exempt from the application of Code Section 409A by reason of the short-term deferral exemption or otherwise.

 

14.          No Fractional Shares.  No fractional shares of Common Stock shall be issued or delivered under this Agreement.  The Board shall determine whether cash or other property shall be issued or paid in lieu of such fractional shares of Common Stock or whether such fractional shares of Common Stock or any rights thereto shall be forfeited or otherwise eliminated.

 

15.          Amendment.  The Board may at any time amend, modify or terminate the Plan and this Agreement; provided, however, that no such action of the Board shall adversely affect the Recipient’s rights under this Agreement without the consent of the Recipient.  The Board or the Board, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Agreement so that the Award qualifies for exemption from or complies with Code Section 409A; provided, however, that the Board and the Company make no representations that the Award shall be exempt from or comply with Code Section 409A and make no undertaking to preclude Code Section 409A from applying to the Award.

 

16.          Severability.  If any provision of this Agreement is determined to be invalid, illegal or unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or the Agreement under any law deemed applicable by the Board, such provision shall be construed or deemed amended to conform to applicable laws, or, if it cannot be so construed or deemed amended without, in the Board’s determination, materially altering the intent of the Plan or the Agreement, such provision shall be stricken as to such jurisdiction or person, and the remainder of the Agreement shall remain in full force and effect.

 

17.          Governing Law and Jurisdiction.  The Plan and this Agreement are governed by the substantive and procedural laws of the state of Delaware.  The Recipient and the Company agree to submit to the exclusive jurisdiction of, and venue in, the courts in the State of North Carolina, County of Mecklenburg, including the Federal Courts located therein (should Federal jurisdiction exist) in any dispute relating to this Agreement.  As consideration for and by accepting the Award, the Participant agrees that the Governing Law and Jurisdiction provisions

 

6

 

of this Section 17 shall supersede any Governing Law or similar provisions contained or referenced in any prior equity award made by the Company to the Recipient, and, accordingly, such prior equity award shall become subject to the terms and conditions of the Governing Law and Jurisdiction provisions of this Section 17.

 

18.          Successors.  All obligations of the Company under this Agreement will be binding on any successor to the Company, whether the existence of the successor results from a direct or indirect purchase of all or substantially all of the business or assets of the Company or both, or a merger, consolidation or otherwise.

 

19.          Erroneously Awarded Compensation.  This Award shall be subject to any compensation recovery policy adopted by the Company to comply with applicable law, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or to comport with good corporate governances practices, as such policy may be amended from time to time.  As consideration for and by accepting the Award, the Recipient agrees that all prior equity award made by the Company to the Recipient shall become subject to the terms and conditions of the Erroneously Awarded Compensation provisions of this Section 19.

 

7Exhibit 10.1

 

EXECUTION VERSION

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT  (this “Agreement”) is made as of December 28, 2012, by and between DCF PARTNERS, L.P., a Delaware limited partnership (the “Seller”), and TRIANGLE PETROLEUM CORPORATION, a Delaware corporation (“Triangle”).

 

RECITALS

 

A.            Pursuant to the terms and conditions of this Agreement, the Seller has agreed to sell to Triangle, and Triangle has agreed to purchase from the Seller, 3,500,000 Series A Units (the “RockPile Units”) of RockPile Energy Services, LLC, a Delaware limited liability company (“RockPile”), in return for 1,900,000 shares of common stock of Triangle (the “Triangle Shares”) and $609,000 in cash (the “Cash Consideration”).

 

B.            NOW, THEREFORE, in consideration of the recitals and the mutual promises, representations, warranties, and covenants set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

1.             PURCHASE AND SALE OF ROCKPILE UNITS

 

1.1          Sale of RockPile Units.

 

(a)             Subject to the terms and conditions of this Agreement, at the Closing (as defined below), Triangle shall purchase from the Seller, and the Seller shall sell to Triangle, the RockPile Units, free and clear of all Encumbrances (as defined below), except for any restrictions on transfer arising under applicable securities laws or the Second Amendment and Restated Limited Liability Company Agreement of RockPile (the “RockPile LLC Agreement”).

 

1.2          Purchase Price.  As consideration for the RockPile Units, Triangle agrees to issue to Seller the Triangle Shares and pay to Seller the Cash Consideration.

 

1.3          Closing.  The closing of the purchase and sale of the RockPile Units shall occur upon both Parties executing this Agreement (the “Closing”).  The date on which the Closing occurs is referred to herein as the “Closing Date.”

 

(a)             Deliveries by the Seller.  At the Closing, the Seller shall deliver to Triangle:

 

(i)            An executed copy of this Agreement; and

 

(ii)           An executed copy of a Unit Assignment and Power, in a form acceptable to Triangle, transferring title in the RockPile Units to Triangle;

 

(b)             Deliveries by Triangle.  At the Closing, Triangle shall deliver to Seller:

 

(i)            An executed copy of this Agreement;

 

 

(ii)           The Cash Consideration by check or wire transfer of immediately available funds; and

 

(iii)          A stock certificate representing the Triangle Shares (the “Triangle Certificate”).

 

2.             REPRESENTATIONS AND WARRANTIES

 

2.1          Representations and Warranties of the Seller.  The Seller hereby represents and warrants to Triangle as follows:

 

(a)             Organization.  The Seller is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

(b)             Authorization.  The Seller has full corporate power and authority to execute and deliver this Agreement and the Unit Assignment and Power, and to consummate the transactions contemplated hereby and thereby, and no other corporate action on the part of the Seller is necessary to authorize the execution and delivery by the Seller of this Agreement or the Unit Assignment and Power or the consummation of the purchase and sale of the RockPile Units.

 

(c)             Execution; Validity of Agreement.  This Agreement has been duly executed and delivered by the Seller and, assuming due and valid authorization, execution and delivery hereof by Triangle, is a valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by the effects of bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, and other laws relating to or affecting creditors’ rights, and the general principles of equity.

 

(d)             Ownership of RockPile Units.  Seller owns of record and beneficially all of the RockPile Units, free and clear of any and all liens, charges, security interests, options, claims, mortgages, pledges, proxies, voting trusts or agreements, obligations, understandings or arrangements, defects or imperfections of title or other restrictions on title or transfer of any nature whatsoever (collectively, “Encumbrances”), except for any restrictions on transfer arising under applicable securities laws or the RockPile LLC Agreement.  Further, the RockPile Units constitute the entirety of Seller’s ownership interest in RockPile.

 

(e)             Litigation. There are no actions, suits, proceedings, investigations or grievances pending or, to the knowledge of Seller, threatened that are reasonably likely to prohibit or restrain the ability of Seller to enter into this Agreement or consummate the transactions contemplated hereby.

 

(f)              Brokers or Finders.  Seller has not entered into any agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other firm or person to any broker’s or finder’s fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement.

 

(g)             Insolvency.  No insolvency proceedings of any kind are pending against Seller, and Seller is not insolvent or unable to pay its debts as and when they fall due.

 

2

 

(h)             Investment Representations.

 

(i)            The Seller is acquiring the Triangle Shares for investment and not with a view toward, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the Triangle Shares.

 

(ii)           The Seller is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and able to bear the economic risk of holding the Triangle Shares for an indefinite period of time, and has knowledge and experience in financial and business matters such that it is capable of evaluating the risks of the investment in the Triangle Shares.

 

(iii)          The Seller acknowledges that it has reviewed Triangle’s public filings with the Securities and Exchange Commission (the “SEC”) and has had the opportunity to ask questions of and receive answers from Triangle’s management regarding Triangle’s publicly available information, and Seller represents that it has all information that Seller deems relevant to making an investment decision with respect to the Triangle Shares.

 

(iv)          Immediately prior to the Closing, Seller is not an “affiliate” (as defined in Rule 144 under the Securities Act) of Triangle or acting on behalf of an affiliate of Triangle.

 

(v)           The Seller acknowledges that the Triangle Shares are being offered in a transaction not involving any public offering within the United States within the meaning of the Securities Act and that Triangle Shares have not been registered under the Securities Act and will bear the legend set forth below:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT OR THE ISSUER HAS RECEIVED DOCUMENTATION REASONABLY SATISFACTORY TO IT (WHICH MAY INCLUDE AN OPINION OF COUNSEL) THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.

 

2.2          Representations and Warranties of Triangle.  Triangle hereby represents and warrants to the Seller as follows:

 

(a)             Organization.  Triangle is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

(b)             Authorization.  Triangle has full corporate power and authority to execute and deliver this Agreement and Triangle Certificate and to consummate the transactions contemplated hereby, and no other corporate action on the part of Triangle is necessary to authorize the execution and delivery by Triangle of this Agreement or Triangle Certificate or the consummation of the purchase and sale of the RockPile Units.

 

3

 

(c)             Execution; Validity of Agreement.  This Agreement has been duly executed and delivered by Triangle and, assuming due and valid authorization, execution and delivery hereof by Seller, is a valid and binding obligation of Triangle enforceable against Triangle in accordance with its terms, except as such enforceability may be limited by the effects of bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, and other laws relating to or affecting creditors’ rights, and the general principles of equity.

 

(d)             Good Title Conveyed.  At the time of issuance, the Triangle Shares will be duly authorized, validly issued, fully paid and nonassessable and not subject to any preemptive rights.  The Triangle Shares, when issued, will be free and clear of all Encumbrances, except for any restrictions on transfer arising under applicable securities laws.

 

(e)             Litigation. There are no actions, suits, proceedings, investigations or grievances pending or, to the knowledge of Triangle, threatened that are reasonably likely to prohibit or restrain the ability of Triangle to enter into this Agreement or consummate the transactions contemplated hereby.

 

(f)              Brokers or Finders.  Triangle has not entered into any agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other firm or person to any broker’s or finder’s fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement.

 

(g)             Insolvency.  No insolvency proceedings of any kind are pending against Triangle, and Triangle is not insolvent or unable to pay its debts as and when they fall due.

 

(h)             Investment Representation. Triangle is acquiring the RockPile Units for investment and not with a view toward, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the RockPile Units.

 

3.             ADDITIONAL COVENANTS.

 

3.1          Transfer Restrictions.  Seller acknowledges that the Triangle Shares are being offered in a transaction not involving any public offering within the United States within the meaning of the Securities Act and that the Triangle Shares have not been registered under the Securities Act.  Seller shall not make any sale or other disposition of all or any portion of the Triangle Shares except: (a) to Triangle, (b) pursuant to an effective registration statement under the Securities Act, (c) pursuant to an exemption from registration under the Securities Act and in compliance with any applicable state securities laws, or (d) in a transaction that does not require registration under the Securities Act or any applicable state securities laws and regulations governing the offer and sale of securities.  In connection with a sale pursuant to clause (c) or (d), Seller shall furnish to Triangle an opinion of counsel of recognized standing in form and substance satisfactory to Triangle.  Triangle shall instruct its transfer agent to refuse to register any disposition of the Triangle Shares not made in compliance with this Section 3.1.

 

3.2          Registration Rights.

 

(a)             Promptly following the Closing, but not later than sixty (60) days following the Closing Date, Triangle shall file a Registration Statement on Form S-3 under the Securities Act (or such other appropriate form which Triangle is then eligible to use or an amendment to an existing registration statement) (the “Registration Statement”) to register for resale the Triangle Shares.  Notwithstanding the foregoing, Triangle may postpone the filing or the effectiveness of the Registration 

 

4

 

Statement if, based on the good faith judgment of Triangle’s Board of Directors, such postponement is necessary because it would be materially detrimental to Triangle for such Registration Statement to be filed and it is therefore necessary to defer the filing or effectiveness of that Registration Statement.  Triangle shall provide prompt written notice to Seller of any such postponement of the filing or effectiveness of the Registration Statement pursuant to this Section 3.2(a).  Notwithstanding the other provisions of this Section 3.2(a), Triangle may not postpone the filing or effectiveness of the Registration Statement past the date that is the earliest of: (a) the date upon which any disclosure of a matter that Triangle’s Board of Directors has determined would not be in the best interest of Triangle to be disclosed is disclosed to the public or ceases to be material, and (b) seven (7) days after the date upon which Triangle’s Board of Directors has determined that such matter should not be disclosed.

 

(b)             In connection with the registration of the Triangle Shares, Triangle shall:

 

(i)            a reasonable time before filing the Registration Statement or prospectus or any amendments or supplements thereto in which Seller is named, furnish to Seller copies of such Registration Statement or prospectus or supplement thereto proposed to be filed, and Seller shall have the opportunity to review and comment thereon, and Triangle shall consider such changes in good faith prior to filing any such document;

 

(ii)           furnish to Seller such number of copies of such prospectus (including each preliminary prospectus and prospectus supplement) and such other documents as Seller may reasonably request in order to facilitate the disposition of the registered Triangle Shares; provided, however, that Triangle shall have no such obligation to furnish copies of a final prospectus if the conditions of Rule 172(c) under the Securities Act are satisfied by Triangle;

 

(iii)          use reasonable best efforts to register or qualify the Triangle Shares under such other securities or blue sky laws of U.S. federal or state jurisdictions as Seller reasonably requests and do any and all other acts and things that may be reasonably necessary or advisable to enable Seller to consummate the disposition in such jurisdictions of the Triangle Shares (provided, that Triangle will not be required to (a) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3.2(b)(iii), (b) subject itself to taxation in any such jurisdiction, or (c) consent to general service of process in any such jurisdiction);

 

(iv)          notify Seller, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the occurrence of any event as a result of which any prospectus contains an untrue statement of a material fact or omits any material fact necessary to make the statements therein not misleading;

 

(v)           make available for inspection by Seller, and any attorney, accountant or other agent retained by Seller, all financial and other records, pertinent corporate documents and properties of Triangle, and cause Triangle’s officers, directors, employees and independent accountants to supply all information reasonably requested by Seller, attorney, accountant or agent in connection with such Registration Statement;

 

(vi)          promptly notify Seller:

 

(1)           when the Registration Statement, any pre-effective amendment, the prospectus or any prospectus supplement or post-effective amendment to the

 

5

 

Registration Statement has been filed and, with respect to the Registration Statement or any post-effective amendment, when the same has become effective;

 

(2)           of any written request by the SEC for amendments or supplements to the Registration Statement or any prospectus or of any inquiry by the SEC relating to such Registration Statement;

 

(3)           of the notification to Triangle by the SEC of its initiation of any proceeding with respect to the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement; and

 

(4)           of the receipt by Triangle of any notification with respect to the suspension of the qualification of the Triangle Shares for sale under the applicable securities or blue sky laws of any jurisdiction;

 

(vii)         during the period when the prospectus is required to be delivered under the Securities Act, use its reasonable best efforts to promptly file all documents required to be filed with the SEC, including pursuant to Sections 13(a), 13(c), 14, or 15(d) of the U.S. Securities Exchange Act of 1934, as amended;

 

(viii)        use its reasonable best efforts to cause the registered Triangle Shares to be listed on each U.S. securities exchange (if any) on which securities of the same class issued by Triangle are then listed; and

 

(ix)          use its reasonable best efforts to keep the Registration Statement effective until the earlier of (x) one year from the date on which the SEC declares such Registration Statement effective, (y) the date on which all of the Triangle Shares covered by such Registration Statement have been sold, and (z) the date on which the Triangle Shares are freely transferable without volume restrictions by Seller in accordance with Rule 144 (or any similar provision then in force) under the Securities Act.

 

(c)             Seller agrees that, upon notice from Triangle of the happening of any event as a result of which the prospectus included (or deemed included) in the Registration Statement contains an untrue statement of a material fact or omits any material fact necessary to make the statements therein not misleading, Seller will forthwith discontinue disposition of the Triangle Shares pursuant to such Registration Statement until Seller is advised in writing by Triangle that the use of the prospectus may be resumed and is furnished with a supplemented or amended prospectus.

 

(d)             Except as otherwise provided herein, the expenses incurred by Triangle in connection with registration and filing fees, printing and delivery expenses, accounting fees, fees and disbursements of counsel to Triangle, consultant and expert fees, premiums for liability insurance, if Triangle chooses to obtain such insurance, obtained in connection with the Registration Statement filed to effect such compliance, and all expenses, including counsel fees, of complying with any state securities laws, shall be paid by Triangle.  All fees and disbursements of any counsel, experts, or consultants employed by Seller shall be borne by Seller. Seller agrees that any selling commissions or discounts payable to any underwriter or broker of securities to be sold by Seller shall be borne by Seller.  The obligations of Triangle and Seller for the expenses described in this Section 3.2(d) shall apply irrespective of whether any sales of Triangle Shares ultimately take place.

 

3.3          Waiver of Series A Unit Rights.  Seller acknowledges that the only other holder of Series A Units of RockPile other than Seller and Triangle will sell all of its Series A Units in RockPile

 

6

 

to Triangle concurrently with the Closing (the “Concurrent Closing”). Seller expressly waives any right to notice, right of first refusal, or other right that it may have in connection with the sale of RockPile Series A Units in the Concurrent Closing, and Seller covenants that it will take no future action to exercise or attempt to enforce any rights that it had as a holder of the RockPile Series A Units.  For the avoidance of doubt, Seller expressly waives any and all rights to any accrued but unpaid preferred return on the RockPile Units.

 

4.             MISCELLANEOUS.

 

4.1          Successors and Assigns.  Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto without the prior written consent of the other parties.  Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective permitted successors and assigns.  Nothing in this Agreement is intended to confer upon any party other than the parties hereto or their respective permitted successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

4.2          Notices.  Unless otherwise provided herein, any notice, request, waiver, instruction, consent or document or other communication required or permitted to be given by this Agreement shall be effective only if it is in writing and (i) delivered by hand or sent by certified mail, return receipt requested, or (ii) if sent by a nationally-recognized overnight delivery service with delivery confirmed, as follows:

 

	
Seller:
    	
DCF   Partners, L.P.
    
	
 
    	
73   Arch Street
    
	
 
    	
Greenwich,   CT 06830
    
	
 
    	
Attn:   David Floren
    
	
 
    	
 
    
	
Triangle:
    	
Triangle   Petroleum Corporation
    
	
 
    	
1200   17th Street, Suite 2600
    
	
 
    	
Denver,   CO 80202
    
	
 
    	
Attn:   Chief Executive Officer
    

 

The parties shall promptly notify each other of any change in their respective addresses or of the individual or entity or office to receive notices, requests or other communications under this Section 4.2.  All notices shall be deemed to have been given (i) if personally delivered or sent by certified mail, as of the date when so delivered, or (ii) if sent by nationally-recognized overnight delivery service, two days after mailing.

 

4.3          Amendments and Waivers.  This Agreement may not be amended or supplemented, unless set forth in a writing signed by each party hereto. Except as otherwise permitted in this Agreement, the terms or conditions of this Agreement may not be waived unless set forth in a writing signed by the party entitled to the benefits thereof.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of such provision at any time in the future or a waiver of any other provision hereof.  The rights and remedies of the parties hereto are cumulative and not alternative. Except as otherwise provided in this Agreement, neither the failure nor any delay by any party hereto in exercising any right, power or privilege under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.

 

7

 

4.4          Severability.  Any term or provision of this Agreement that is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.  If the final judgment of a court of competent jurisdiction or other authority declares that any term or provision hereof is invalid, void or unenforceable, the parties agree that the court making such determination shall have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision.

 

4.5          Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws (as opposed to the conflicts of law provisions) of the State of Colorado.

 

4.6          Submission to Jurisdiction.  The parties hereby submit to the non-exclusive jurisdiction of any court of the State of Colorado or the United States District Court for the District of Colorado for the purpose of any suit, action, or other proceeding arising out of this Agreement, and waive any and all objections to jurisdiction that they may have under the laws of the State of Colorado or the United States and any claim or objection that any such court is an inconvenient forum.

 

4.7          Entire Agreement.  This Agreement, together with the Unit Assignment and Power, constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.

 

4.8          Counterparts.  This Agreement may be executed in two or more counterparts (including by facsimile or similar means of electronic communication), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

4.9          Expenses.  Except as otherwise specifically provided in this Agreement, all fees, costs and expenses incurred by the Seller and Triangle in negotiating this Agreement or in consummating the transactions contemplated by this Agreement shall be paid by the party incurring the same, including legal and accounting fees, costs and expenses.

 

4.10        Announcements.  Publicity and other general releases of information to the public concerning the transactions contemplated by this Agreement shall be jointly planned and coordinated between the Seller and Triangle.  Neither party shall act unilaterally in this regard without the prior approval of the other party; provided, however, that such approval shall not be unreasonably withheld.  Nothing in this Section 4.10 shall prevent either party from furnishing information to comply with applicable laws or rules of any applicable stock exchange.

 

[Signatures follow]

 

8

 

IN WITNESS WHEREOF, the Buyer and Seller have executed this Purchase and Sale Agreement on date first above written.

 

 

	
 
    	
 
    	
Buyer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TRIANGLE   PETROLEUM CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Jonathan Samuels
    
	
 
    	
 
    	
By:   Jonathan Samuels
    
	
 
    	
 
    	
Title:   President & CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Seller
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
DCF   PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   DCF Advisers, L.L.C., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   David Floren
    
	
 
    	
 
    	
By:   David Floren
    
	
 
    	
 
    	
Title:   Authorized Person
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Acknowledged   by:
    	
 
    	
ROCKPILE   ENERGY SERVICES, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Ryan McGee
    
	
 
    	
 
    	
By:   Ryan McGee
    
	
 
    	
 
    	
Title:   Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]