Document:

Exhibit
        4.6

       

      SECURITY
        AGREEMENT

      

      THIS
        SECURITY AGREEMENT
        (the
“Agreement”), is
        entered into and made effective as of December 8, 2005, by and between
TRIANGLE
        USA PETROLEUM CORPORATION, a
        corporation organized under the laws of the state of Colorado with its principal
        place of business at Suite 1110, 521-3rd
        Avenue
        SW, Calgary, Alberta, Canada T2P 3T3 (the “Company”),
        and
        Cornell Capital Partners, LP (the
        “Secured
        Party”).

      

      WHEREAS,
        the
        Company is a wholly owned subsidiary of Triangle Petroleum Corporation, a
        Nevada
        corporation (the “Parent”);

      

      WHEREAS,
        on the
        date hereof, the Parent shall issue and sell to the Secured Party, as provided
        in the Securities Purchase Agreement dated the date hereof, and the Secured
        Party shall purchase up to Fifteen Million Dollars ($15,000,000) of secured
        convertible debentures (the “Convertible
        Debentures”),
        which
        shall be convertible into shares of common stock of the Parent, par value
        $0.0001 (the “Common
        Stock”)
        (as
        converted, the “Conversion
        Shares”),
        in
        the respective amounts set forth opposite each Buyer(s) name on Schedule I
        attached to the Securities Purchase Agreement;

      

      WHEREAS,
        the
        Company shall benefit from the sale of the Convertible Debentures by the
        Parent
        to the Secured Party;

      

      WHEREAS,
        to
        induce
        the Secured Party to enter into the transaction contemplated by the Securities
        Purchase Agreement, the Convertible Debenture, the Investor Registration
        Rights
        Agreement, the Irrevocable Transfer Agent Instructions, and the Escrow Agreement
        (collectively referred to as the “Transaction
        Documents”),
        the
        Company hereby grants to the Secured Party a security interest in and to
        the
        Pledged Property (as defined below) until the satisfaction of the Obligations,
        as defined herein below. 

      

      NOW,
        THEREFORE, in
        consideration of the premises and the mutual covenants herein contained,
        and for
        other good and valuable consideration, the adequacy and receipt of which
        are
        hereby acknowledged, the parties hereto hereby agree as follows:

      

      ARTICLE
        1.

       

      DEFINITIONS
        AND INTERPRETATIONS

      

      Section
        1.1.    Recitals.
        

      

      The
        above
        recitals are true and correct and are incorporated herein, in their entirety,
        by
        this reference.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Section
        1.2.    Interpretations.

      

      Nothing
        herein expressed or implied is intended or shall be construed to confer upon
        any
        person other than the Secured Party any right, remedy or claim under or by
        reason hereof.

      

      Section
        1.3.    Obligations
        Secured.

      

      The
        obligations secured hereby are any and all obligations of the Company or
        the
        Parent now existing or hereinafter incurred to the Secured Party, whether
        oral
        or written and whether arising before, on or after the date hereof including,
        without limitation, those obligations of the Parent to the Secured Party
        under
        the Transaction Documents, and any other amounts now or hereafter owed to
        the
        Secured Party by the Parent thereunder or hereunder (collectively, the
“Obligations”).

      

      ARTICLE
        2.

      

      PLEDGED
        PROPERTY, ADMINISTRATION OF COLLATERAL AND TERMINATION OF SECURITY
        INTEREST

      

      Section
        2.1.    Pledged
        Property.

      

      (a)    The
        Company hereby pledges to the Secured Party, and creates in the Secured Party
        for its benefit, a security interest for such time until the Obligations
        are
        paid in full, in and to all of the property of the Company as set forth in
        Exhibit “A”
        attached
        hereto and the products thereof and the proceeds of all such items
        (collectively, the “Pledged
        Property”):

      

      (b)    Simultaneously
        with the execution and delivery of this Agreement, the Company shall make,
        execute, acknowledge, file, record and deliver to the Secured Party any
        documents reasonably requested by the Secured Party to perfect its security
        interest in the Pledged Property. Simultaneously with the execution and delivery
        of this Agreement, the Company shall make, execute, acknowledge and deliver
        to
        the Secured Party such documents and instruments, including, without limitation,
        financing statements, certificates, affidavits and forms as may, in the Secured
        Party’s reasonable judgment, be necessary to effectuate, complete or perfect, or
        to continue and preserve, the security interest of the Secured Party in the
        Pledged Property, and the Secured Party shall hold such documents and
        instruments as secured party, subject to the terms and conditions contained
        herein.

      

      Section
        2.2.    Rights;
        Interests; Etc.

      

      (a)    So
        long
        as no Event of Default (as hereinafter defined) shall have occurred
        and be
        continuing:

      

      (i)    the
        Company shall be entitled to exercise any and all rights pertaining to the
        Pledged Property or any part thereof for any purpose not inconsistent with
        the
        terms hereof; and

      

      (ii)    the
        Company shall be entitled to receive and retain any and all payments paid
        or
        made in respect of the Pledged Property.

       

      
        
           

        

        
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      (b)    Upon
        the
        occurrence and during the continuance of an Event of Default:

      

      (i)    All
        rights of the Company to exercise the rights which it would otherwise be
        entitled to exercise pursuant to Section 2.2(a)(i) hereof and
        to
        receive payments which it would otherwise be authorized to receive and retain
        pursuant to Section 2.2(a)(ii) hereof shall be suspended, and
        all such
        rights shall thereupon become vested in the Secured Party who shall thereupon
        have the sole right to exercise such rights and to receive and hold as Pledged
        Property such payments; provided,
        however,
        that if
        the Secured Party shall become entitled and shall elect to exercise its right
        to
        realize on the Pledged Property pursuant to Article 5 hereof, then
        all cash
        sums received by the Secured Party, or held by Company for the benefit of
        the
        Secured Party and paid over pursuant to Section 2.2(b)(ii) hereof,
        shall be applied against any outstanding Obligations; and

      

      (ii)   All
        interest, dividends, income and other payments and distributions which are
        received by the Company contrary to the provisions of
        Section 2.2(b)(i) hereof shall be received in trust for the
        benefit of
        the Secured Party, shall be segregated from other property of the Company
        and
        shall be forthwith paid over to the Secured Party; or 

      

      (iii)   The
        Secured Party in its sole discretion shall be authorized to sell
        any
        or all of the Pledged Property at public or private sale in order to recoup
        all
        of the outstanding principal plus accrued interest owed pursuant to the
        Convertible Debenture as described herein

      

      (c)    An
        “Event
        of Default”
        shall
        be deemed to have occurred under this Agreement upon an Event of Default
        under
        the Convertible Debentures.

      

      ARTICLE
        3.

      

      ATTORNEY-IN-FACT;
        PERFORMANCE

      

      Section
        3.1.    Secured
        Party Appointed Attorney-In-Fact.

      

      Upon
        the
        occurrence of an Event of Default, the Company hereby appoints the Secured
        Party
        as its attorney-in-fact, with full authority in the place and stead of the
        Company and in the name of the Company or otherwise, from time to time in
        the
        Secured Party’s discretion to take any action and to execute any instrument
        which the Secured Party may reasonably deem necessary to accomplish the purposes
        of this Agreement, including, without limitation, to receive and collect
        all
        instruments made payable to the Company representing any payments in respect
        of
        the Pledged Property or any part thereof and to give full discharge for the
        same. The Secured Party may demand, collect, receipt for, settle, compromise,
        adjust, sue for, foreclose, or realize on the Pledged Property as and when
        the
        Secured Party may determine. To facilitate collection, the Secured Party
        may
        notify account debtors and obligors on any Pledged Property to make payments
        directly to the Secured Party.

      

      Section
        3.2.    Secured
        Party May Perform.

      

      If
        the
        Company fails to perform any agreement contained herein, the Secured Party,
        at
        its option, may itself perform, or cause performance of, such agreement,
        and the
        expenses of the Secured Party incurred in connection therewith shall be included
        in the Obligations secured hereby and payable by the Company under
        Section 8.3.

       

      
        
           

        

        
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      ARTICLE
        4.

      

      REPRESENTATIONS
        AND WARRANTIES

      

      Section
        4.1.    Authorization;
        Enforceability.

      

      Each
        of
        the parties hereto represents and warrants that it has taken all action
        necessary to authorize the execution, delivery and performance of this Agreement
        and the transactions contemplated hereby; and upon execution and delivery,
        this
        Agreement shall constitute a valid and binding obligation of the respective
        party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
        and similar laws affecting creditors’ rights or by the principles governing the
        availability of equitable remedies.

      

      Section
        4.2.    Ownership
        of Pledged Property.

      

      The
        Company warrants and represents that it is the legal and beneficial owner
        of the
        Pledged Property free and clear of any lien, security interest, option or
        other
        charge or encumbrance except for the security interest created by this
        Agreement.

      

      ARTICLE
        5.

      

      DEFAULT;
        REMEDIES; SUBSTITUTE COLLATERAL

      

      Section
        5.1.    Default
        and Remedies.

      

      (a)    If
        an
        Event of Default occurs, then in each such case the Secured Party may declare
        the Obligations to be due and payable immediately, by a notice in writing
        to the
        Company, and upon any such declaration, the Obligations shall become immediately
        due and payable. 

      

      (b)    Upon
        the
        occurrence of an Event of Default, the Secured Party shall: (i) be
        entitled
        to receive all distributions with respect to the Pledged Property, (ii) to
        cause the Pledged Property to be transferred into the name of the Secured
        Party
        or its nominee, (iii) to dispose of the Pledged Property, and (iv) to
        realize upon any and all rights in the Pledged Property then held by the
        Secured
        Party.

      

      Section
        5.2.    Method
        of Realizing Upon the Pledged Property; Other Remedies.

      

      Upon
        the
        occurrence of an Event of Default, in addition to any rights and remedies
        available at law or in equity, the following provisions shall govern the
        Secured
        Party’s right to realize upon the Pledged Property:

      

      (a)    Any
        item
        of the Pledged Property may be sold for cash or other value in any number
        of
        lots at brokers board, public auction or private sale and may be sold without
        demand, advertisement or notice (except that the Secured Party shall give
        the
        Company ten (10) days’ prior written notice of the time and place or
        of the time after which a private sale may be made (the “Sale
        Notice”)),
        which notice period shall in any event is hereby agreed to be commercially
        reasonable. At any sale or sales of the Pledged Property, the Company may
        bid
        for and purchase the whole or any part of the Pledged Property and, upon
        compliance with the terms of such sale, may hold, exploit and dispose of
        the
        same without further accountability to the Secured Party. The Company will
        execute and deliver, or cause to be executed and delivered, such instruments,
        documents, assignments, waivers, certificates, and affidavits and supply
        or
        cause to be supplied such further information and take such further action
        as
        the Secured Party reasonably shall require in connection with any such
        sale.

       

      
        
           

        

        
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      (b)    Any
        cash
        being held by the Secured Party as Pledged Property and all cash proceeds
        received by the Secured Party in respect of, sale of, collection from, or
        other
        realization upon all or any part of the Pledged Property shall be applied
        as
        follows:

      

      (i)    to
        the
        payment of all amounts due the Secured Party for the expenses reimbursable
        to it
        hereunder or owed to it pursuant to Section 8.3 hereof;

      

      (ii)   to
        the
        payment of the Obligations then due and unpaid.

      

      (iii)   the
        balance, if any, to the person or persons entitled thereto, including, without
        limitation, the Company.

      

      (c)    In
        addition to all of the rights and remedies which the Secured Party may have
        pursuant to this Agreement, the Secured Party shall have all of the rights
        and
        remedies provided by law, including, without limitation, those under the
        Uniform
        Commercial Code.

      

      (i)    If
        the
        Company fails to pay such amounts due upon the occurrence of an Event of
        Default
        which is continuing, then the Secured Party may institute a judicial proceeding
        for the collection of the sums so due and unpaid, may prosecute such proceeding
        to judgment or final decree and may enforce the same against the Company
        and
        collect the monies adjudged or decreed to be payable in the manner provided
        by
        law out of the property of Company, wherever situated. The Secured Party
        may
        proceed against the Company without proceeding first against any other party,
        including, without limitation, the Parent. 

      

      (ii)   The
        Company agrees that it shall be liable for any reasonable fees, expenses
        and
        costs incurred by the Secured Party in connection with enforcement, collection
        and preservation of the Transaction Documents, including, without limitation,
        reasonable legal fees and expenses, and such amounts shall be deemed included
        as
        Obligations secured hereby and payable as set forth in Section 8.3
        hereof.

      

      Section
        5.3.    Proofs
        of Claim.

      

      In
        case
        of the pendency of any receivership, insolvency, liquidation, bankruptcy,
        reorganization, arrangement, adjustment, composition or other judicial
        proceeding relating to the Company or the property of the Company or of such
        other obligor or its creditors, the Secured Party (irrespective of whether
        the
        Obligations shall then be due and payable as therein expressed or by declaration
        or otherwise and irrespective of whether the Secured Party shall have made
        any
        demand on the Company for the payment of the Obligations), subject to the
        rights
        of Previous Security Holders, shall be entitled and empowered, by intervention
        in such proceeding or otherwise:

      
        
           

        

        
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      (i)    to
        file
        and prove a claim for the whole amount of the Obligations and to file such
        other
        papers or documents as may be necessary or advisable in order to have the
        claims
        of the Secured Party (including any claim for the reasonable legal fees and
        expenses and other expenses paid or incurred by the Secured Party permitted
        hereunder and of the Secured Party allowed in such judicial proceeding),
        and

      

      (ii)   to
        collect and receive any monies or other property payable or deliverable on
        any
        such claims and to distribute the same; and any custodian, receiver, assignee,
        trustee, liquidator, sequestrator or other similar official in any such judicial
        proceeding is hereby authorized by the Secured Party to make such payments
        to
        the Secured Party and, in the event that the Secured Party shall consent
        to the
        making of such payments directed to the Secured Party, to pay to the Secured
        Party any amounts for expenses due it hereunder.

      

      Section
        5.4.    Duties
        Regarding Pledged Property.

      

      The
        Secured Party shall have no duty as to the collection or protection of the
        Pledged Property or any income thereon or as to the preservation of any rights
        pertaining thereto, beyond the safe custody and reasonable care of any of
        the
        Pledged Property actually in the Secured Party’s possession.

      

      ARTICLE
        6.

      

      AFFIRMATIVE
        COVENANTS

      

      The
        Company covenants and agrees that, from the date hereof and until the
        Obligations have been fully paid and satisfied, unless the Secured Party
        shall
        consent otherwise in writing (as provided in Section 8.4
        hereof):

      

      Section
        6.1.    Existence,
        Properties, Etc.

      

      (a)    The
        Company shall do, or cause to be done, all things, or proceed with due diligence
        with any actions or courses of action, that may be reasonably necessary
        (i) to maintain Company’s due organization, valid existence and good
        standing under the laws of its state of incorporation, and (ii) to
        preserve
        and keep in full force and effect all qualifications, licenses and registrations
        in those jurisdictions in which the failure to do so could have a Material
        Adverse Effect (as defined below); and (b) the Company shall not do,
        or
        cause to be done, any act impairing the Company’s corporate power or authority
        (i) to carry on the Company’s business as now conducted, and (ii) to
        execute or deliver this Agreement or any other document delivered in connection
        herewith, including, without limitation, any UCC-1 Financing Statements required
        by the Secured Party (which other loan instruments collectively shall be
        referred to as the “Loan
        Instruments”) to
        which it is or will be a party, or perform any of its obligations hereunder
        or
        thereunder. For purpose of this Agreement, the term “Material
        Adverse Effect”
        shall
        mean any material and adverse affect as determined by Secured Party in its
        reasonable discretion, whether individually or in the aggregate, upon
        (a) the Company’s assets, business, operations, properties or condition,
        financial or otherwise; (b) the Company’s to make payment as and when due
        of all or any part of the Obligations; or (c) the Pledged
        Property.

      
        
           

        

        
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      Section
        6.2.    Financial
        Statements and Reports.

      

      The
        Company shall provide the Security Party with such financial data as the
        Secured
        Party may reasonably request, within a reasonable time after any such request,
        including, without limitation the following financial data:

      

      (a)    The
        balance sheet of the Company as of the close of each fiscal year, the statement
        of earnings and retained earnings of the Company as of the close of such
        fiscal
        year, and statement of cash flows for the Company for such fiscal year, all
        in
        reasonable detail, prepared in accordance with generally accepted accounting
        principles consistently applied, certified by the chief executive and chief
        financial officers of the Company as being true and correct and accompanied
        by a
        certificate of the chief executive and chief financial officers of the Company,
        stating that the Company has kept, observed, performed and fulfilled each
        covenant, term and condition of this Agreement and the other Loan Instruments
        during such fiscal year and that no Event of Default hereunder has occurred
        and
        is continuing, or if an Event of Default has occurred and is continuing,
        specifying the nature of same, the period of existence of same and the action
        the Company proposes to take in connection therewith;

      

      (b)    A
        balance
        sheet of the Company as of the close of each month, and statement of earnings
        and retained earnings of the Company as of the close of such month, all in
        reasonable detail, and prepared substantially in accordance with generally
        accepted accounting principles consistently applied, certified by the chief
        executive and chief financial officers of the Company as being true and correct;
        and

      

      (c)    Copies
        of
        all accountants' reports and accompanying financial reports submitted to
        the
        Company by independent accountants in connection with each annual examination
        of
        the Company.

      

      Section
        6.3.    Accounts
        and Reports.

      

      The
        Company shall maintain a standard system of accounting in accordance with
        generally accepted accounting principles consistently applied and provide,
        at
        its sole expense, to the Secured Party the following:

      

      (a)    as
        soon
        as available, a copy of any notice or other communication alleging any
        nonpayment or other material breach or default, or any foreclosure or other
        action respecting any material portion of its assets and properties, received
        respecting any of the indebtedness of the Company in excess of $50,000 (other
        than the Obligations), or any demand or other request for payment under any
        guaranty, assumption, purchase agreement or similar agreement or arrangement
        respecting the indebtedness or obligations of others in excess of $50,000,
        including any received from any person acting on behalf of the Secured Party
        or
        beneficiary thereof; and

      

      (b)    within
        fifteen (15) days after the making of each submission or filing, a
        copy of
        any report, financial statement, notice or other document, whether periodic
        or
        otherwise, submitted to the shareholders of the Company, or submitted to
        or
        filed by the Company with any governmental authority involving or affecting
        (i)
        the Company that could have a Material Adverse Effect; (ii) the
        Obligations; (iii) any part of the Pledged Property; or (iv) any
        of
        the transactions contemplated in this Agreement or the Loan
        Instruments.

       

      
        
           

        

        
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      Section
        6.4.    Maintenance
        of Books and Records; Inspection.

      

      The
        Company shall maintain its books, accounts and records in accordance with
        generally accepted accounting principles consistently applied, and permit
        the
        Secured Party, its officers and employees and any professionals designated
        by
        the Secured Party in writing, at any time to visit and inspect any of its
        properties (including but not limited to the collateral security described
        in
        the Transaction Documents and/or the Loan Instruments), corporate books and
        financial records, and to discuss its accounts, affairs and finances with
        any
        employee, officer or director thereof.

      

      Section
        6.5.    Maintenance
        and Insurance.

      

      (a)    The
        Company shall maintain or cause to be maintained, at its own expense, all
        of its
        assets and properties in good working order and condition, subject to ordinary
        wear and tear, making all necessary repairs thereto and renewals and
        replacements thereof.

      

      (b)    The
        Company shall maintain or cause to be maintained, at its own expense, insurance
        in form, substance and amounts (including deductibles), which the Company
        deems
        reasonably necessary to the Company’s business, (i) adequate to insure all
        assets and properties of the Company, which assets and properties are of
        a
        character usually insured by persons engaged in the same or similar business
        against loss or damage resulting from fire or other risks included in an
        extended coverage policy; (ii) against public liability and other
        tort
        claims that may be incurred by the Company; (iii) as may be required
        by the
        Transaction Documents and/or the Loan Instruments or applicable law and
        (iv) as may be reasonably requested by Secured Party, all with adequate,
        financially sound and reputable insurers.

      

      Section
        6.6.    Contracts
        and Other Collateral.

      

      The
        Company shall perform all of its obligations under or with respect to each
        instrument, receivable, contract and other intangible included in the Pledged
        Property to which the Company is now or hereafter will be party on a timely
        basis and in the manner therein required, including, without limitation,
        this
        Agreement.

      

      Section
        6.7.    Defense
        of Collateral, Etc.

      

      The
        Company shall defend and enforce its right, title and interest in and to
        any
        part of: (a) the Pledged Property; and (b) if not included
        within the
        Pledged Property, those assets and properties whose loss could have a Material
        Adverse Effect, the Company shall defend the Secured Party’s right, title and
        interest in and to each and every part of the Pledged Property, each against
        all
        manner of claims and demands on a timely basis to the full extent permitted
        by
        applicable law.

      
        
           

        

        
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      Section
        6.8.    Payment
        of Debts, Taxes, Etc.

      

      The
        Company shall pay, or cause to be paid, all of its indebtedness and other
        liabilities and perform, or cause to be performed, all of its obligations
        in
        accordance with the respective terms thereof, and pay and discharge, or cause
        to
        be paid or discharged, all taxes, assessments and other governmental charges
        and
        levies imposed upon it, upon any of its assets and properties on or before
        the
        last day on which the same may be paid without penalty, as well as pay all
        other
        lawful claims (whether for services, labor, materials, supplies or
        otherwise) as and when due.

      

      Section
        6.9.    Taxes
        and Assessments; Tax Indemnity.

      

      The
        Company shall (a) file all tax returns and appropriate schedules thereto
        that are required to be filed under applicable law, prior to the date of
        delinquency, (b) pay and discharge all taxes, assessments and governmental
        charges or levies imposed upon the Company, upon its income and profits or
        upon
        any properties belonging to it, prior to the date on which penalties attach
        thereto, and (c) pay all taxes, assessments and governmental charges
        or
        levies that, if unpaid, might become a lien or charge upon any of its
        properties; provided,
        however,
        that
        the Company in good faith may contest any such tax, assessment, governmental
        charge or levy described in the foregoing clauses (b) and (c) so long as
        appropriate reserves are maintained with respect thereto. 

      

      Section
        6.10.   Compliance
        with Law and Other Agreements.
        

      

      The
        Company shall maintain its business operations and property owned or used
        in
        connection therewith in compliance with (a) all applicable federal,
        state
        and local laws, regulations and ordinances governing such business operations
        and the use and ownership of such property, and (b) all agreements,
        licenses, franchises, indentures and mortgages to which the Company is a
        party
        or by which the Company or any of its properties is bound. Without limiting
        the
        foregoing, the Company shall pay all of its indebtedness promptly in accordance
        with the terms thereof.

      

      Section
        6.11.   Notice
        of Default.
        

      

      The
        Company shall give written notice to the Secured Party of the occurrence
        of any
        default or Event of Default under this Agreement, the Transaction Documents
        or
        any other Loan Instrument or any other agreement of Company for the payment
        of
        money, promptly upon the occurrence thereof.

      

      Section
        6.12.   Notice
        of Litigation.

      

      The
        Company shall give notice, in writing, to the Secured Party of (a) any
        actions, suits or proceedings wherein the amount at issue is in excess of
        $50,000, instituted by any persons against the Company, or affecting any
        of the
        assets of the Company, and (b) any dispute, not resolved within fifteen
        (15) days of the commencement thereof, between the Company on the one hand
        and
        any governmental or regulatory body on the other hand, which might reasonably
        be
        expected to have a Material Adverse Effect on the business operations or
        financial condition of the Company.

      
        
           

        

        
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      ARTICLE
        7.

      

      NEGATIVE
        COVENANTS

      

      The
        Company covenants and agrees that, from the date hereof until the Obligations
        have been fully paid and satisfied, the Company shall not, unless the Secured
        Party shall consent otherwise in writing:

      

      Section
        7.1.    Liens
        and Encumbrances.

      

      The
        Company shall not directly or indirectly make, create, incur, assume or permit
        to exist any assignment, transfer, pledge, mortgage, security interest or
        other
        lien or encumbrance of any nature in, to or against any part of the Pledged
        Property or of the Company’s capital stock, or offer or agree to do so, or own
        or acquire or agree to acquire any asset or property of any character subject
        to
        any of the foregoing encumbrances (including any conditional sale contract
        or
        other title retention agreement), or assign, pledge or in any way transfer
        or
        encumber its right to receive any income or other distribution or proceeds
        from
        any part of the Pledged Property or the Company’s capital stock; or enter into
        any sale-leaseback financing respecting any part of the Pledged Property
        as
        lessee, or cause or assist the inception or continuation of any of the
        foregoing.

      

      Section
        7.2.    Articles,
        By-Laws, Mergers, Consolidations, Acquisitions and Sales.

      

      Without
        the prior express written consent of the Secured Party, which consent shall
        not
        be unreasonably withheld, the Company shall not: (a) Amend its Articles
        of
        Incorporation or By-Laws; (b) be a party to any merger, consolidation or
        corporate reorganization, (c) purchase or otherwise acquire all or
        substantially all of the assets or stock of, or any partnership or joint
        venture
        interest in, any other person, firm or entity, (d) sell, transfer,
        convey,
        grant a security interest in or lease all or any substantial part of its
        assets,
        nor (e) create any subsidiaries nor convey any of its assets to any
        subsidiary in excess of $200,000 in the aggregate.

      

      Section
        7.3.    Management,
        Ownership.

      

      The
        Company shall not materially change its ownership, executive staff or management
        without the prior written consent of the Secured Party. The ownership, executive
        staff and management of the Company are material factors in the Secured Party's
        willingness to institute and maintain a lending relationship with the
        Company.

      

      Section
        7.4.    Dividends,
        Etc.

      

      Except
        for dividends payable to the Parent, the Company shall not declare or pay
        any
        dividend of any kind, in cash or in property, on any class of its capital
        stock,
        nor purchase, redeem, retire or otherwise acquire for value any shares of
        such
        stock, nor make any distribution of any kind in respect thereof, nor make
        any
        return of capital to shareholders, nor make any payments in respect of any
        pension, profit sharing, retirement, stock option, stock bonus, incentive
        compensation or similar plan (except as required or permitted hereunder),
        without the prior written consent of the Secured Party, which consent shall
        not
        be unreasonably withheld.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      Section
        7.5.    Conduct
        of Business.

      

      The
        Company will continue to engage, in an efficient and economical manner, in
        a
        business of the same general type as conducted by it on the date of this
        Agreement.

      

      Section
        7.6.    Places
        of Business.

      

      The
        location of the Company’s chief place of business is Alberta, Canada. The
        Company shall not change the location of its chief place of business, chief
        executive office or any place of business disclosed to the Secured Party
        or move
        any of the Pledged Property from its current location without thirty (30)
        days
        prior written notice to the Secured Party in each instance. 

      

      ARTICLE
        8.

      

      MISCELLANEOUS

      

      Section
        8.1.    Notices.

      

      All
        notices or other communications required or permitted to be given pursuant
        to
        this Agreement shall be in writing and shall be considered as duly given
        on:
        (a) the date of delivery, if delivered in person, by nationally recognized
        overnight delivery service or (b) five (5) days after
        mailing if
        mailed from within the continental United States by certified mail, return
        receipt requested to the party entitled to receive the same:

       

      
        	
                If
                  to the Secured Party:

              	
                Cornell
                  Capital Partners, LP

              
	 	
                101
                  Hudson Street, Suite 3700 

              
	 	
                Jersey
                  City, New Jersey 07302 

              
	 	
                Attention:     
                  Mark
                  Angelo

              
	 	
                Portfolio
                  Manager

              
	 	
                Telephone:   
                  (201)
                  986-8300

              
	 	
                Facsimile:      
                  (201)
                  985-8266

              
	 	 
	
                With
                  copy to:

              	
                David
                  Gonzalez, Esq.

              
	 	
                101
                  Hudson Street, Suite 3700

              
	 	
                Jersey
                  City, NJ 07302

              
	 	
                Telephone:   
                  (201)
                  985-8300

              
	 	
                Facsimile:      
                  (201)
                  985-8266

              
	 	 

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      
        	
                And
                  if to the Company:

              	
                TRIANGLE
                  USA PETROLEUM CORPORATION

              
	 	
                Suite
                  1110, 521-3rd
                  Avenue, SW

              
	 	
                Calgary,
                  Alberta, Canada T2P 3T3

              
	 	
                Attention:    
                  Mark Gustafson

              
	 	
                Telephone:   
                  (403) 262-4471

              
	 	
                Facsimile:      
                  (403)
                  262-4472

              
	 	 
	
                With
                  a copy to:

              	
                Sichenzia
                  Ross Friedman Ference LLP

              
	 	
                1065
                  Avenue of the Americas

              
	 	
                New
                  York, NY 10018

              
	 	
                Attention:    
                  Thomas
                  A. Rose, Esq.

              
	 	
                Telephone:   
                  (212)
                  930-9700

              
	 	
                Facsimile:      
                  (212)
                  930-9725

              

      

       

      Any
        party
        may change its address by giving notice to the other party stating its new
        address. Commencing on the tenth (10th) day
        after the giving of such notice, such newly designated address shall be such
        party’s address for the purpose of all notices or other communications required
        or permitted to be given pursuant to this Agreement.

      

      Section
        8.2.    Severability.

      

      If
        any
        provision of this Agreement shall be held invalid or unenforceable, such
        invalidity or unenforceability shall attach only to such provision and shall
        not
        in any manner affect or render invalid or unenforceable any other severable
        provision of this Agreement, and this Agreement shall be carried out as if
        any
        such invalid or unenforceable provision were not contained herein.

      

      Section
        8.3.    Expenses.

      

      In
        the
        event of an Event of Default, the Company will pay to the Secured Party the
        amount of any and all reasonable expenses, including the reasonable fees
        and
        expenses of its counsel, which the Secured Party may incur in connection
        with:
        (i) the custody or preservation of, or the sale, collection from,
        or other
        realization upon, any of the Pledged Property; (ii) the exercise or
        enforcement of any of the rights of the Secured Party hereunder or
        (iii) the failure by the Company to perform or observe any of the
        provisions hereof.

      

      Section
        8.4.    Waivers,
        Amendments, Etc.

      

      The
        Secured Party’s delay or failure at any time or times hereafter to require
        strict performance by Company of any undertakings, agreements or covenants
        shall
        not waiver, affect, or diminish any right of the Secured Party under this
        Agreement to demand strict compliance and performance herewith. Any waiver
        by
        the Secured Party of any Event of Default shall not waive or affect any other
        Event of Default, whether such Event of Default is prior or subsequent thereto
        and whether of the same or a different type. None of the undertakings,
        agreements and covenants of the Company contained in this Agreement, and
        no
        Event of Default, shall be deemed to have been waived by the Secured Party,
        nor
        may this Agreement be amended, changed or modified, unless such waiver,
        amendment, change or modification is evidenced by an instrument in writing
        specifying such waiver, amendment, change or modification and signed by the
        Secured Party.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      Section
        8.5.    Continuing
        Security Interest.

      

      This
        Agreement shall create a continuing security interest in the Pledged Property
        and shall: (i) remain in full force and effect until payment in full
        of the
        Obligations; and (ii) be binding upon the Company and its successors
        and
        heirs and (iii) inure to the benefit of the Secured Party and its
        successors and assigns. Upon the payment or satisfaction in full of the
        Obligations, the Company shall be entitled to the return, at its expense,
        of
        such of the Pledged Property as shall not have been sold in accordance with
        Section 5.2 hereof or otherwise applied pursuant to the terms
        hereof.

      

      Section
        8.6.    Independent
        Representation.

      

      Each
        party hereto acknowledges and agrees that it has received or has had the
        opportunity to receive independent legal counsel of its own choice and that
        it
        has been sufficiently apprised of its rights and responsibilities with regard
        to
        the substance of this Agreement.

      

      Section
        8.7.    Applicable
        Law: Jurisdiction.

      

      This
        Agreement shall be governed by and interpreted in accordance with the laws
        of
        the State of New Jersey without regard to the principles of conflict of laws.
        The parties further agree that any action between them shall be heard in
        Hudson
        County, New Jersey, and expressly consent to the jurisdiction and venue of
        the
        Superior Court of New Jersey, sitting in Hudson County and the United States
        District Court for the District of New Jersey sitting in Newark, New Jersey
        for
        the adjudication of any civil action asserted pursuant to this
        Paragraph.

      

      Section
        8.8.    Waiver
        of Jury Trial.

      

      AS
        A
        FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND
        TO
        MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES
        ANY
        RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS
        AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS TRANSACTION.
        

      

      Section
        8.9.    Entire
        Agreement.

      

      This
        Agreement constitutes the entire agreement among the parties and supersedes
        any
        prior agreement or understanding among them with respect to the subject matter
        hereof.

       

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
         

        
           

        

        
          13

          
            

          

        

        
           

        

      

       

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

      

      

      
        	 	
                COMPANY:

              
	 	
                Triangle
                  USA Petroleum Corporation

              
	 	 
	 	
                By:
                  /s/
                  MARK GUSTAFSON

              
	 	
                Name:
                  Mark
                  Gustafson

              
	 	
                Title:  
                  Chief
                  Executive Officer

              
	 	 
	 	 
	 	
                SECURED
                  PARTY:

              
	 	
                CORNELL
                  CAPITAL PARTNERS, LP

              
	 	 
	 	
                By: Yorkville
                  Advisors, LLC

              
	 	
                Its: General
                  Partner

              
	 	 
	 	
                By:
                  /s/
                  MARK ANGELO

              
	 	
                Name:
                  Mark
                  Angelo

              
	 	
                Title:  
                  Portfolio
                  Manager

              

      

      

      

      

      

      

      

      

      

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      EXHIBIT
        A

      DEFINITION
        OF PLEDGED PROPERTY

      

      For
        the
        purpose of securing prompt and complete payment and performance by the Company
        of all of the Obligations, the Company unconditionally and irrevocably hereby
        grants to the Secured Party a continuing security interest in and to, and
        lien
        upon, the following Pledged Property of the Company:

      

      (a)    all
        goods
        of the Company, including, without limitation, machinery, equipment, furniture,
        furnishings, fixtures, signs, lights, tools, parts, supplies and motor vehicles
        of every kind and description, now or hereafter owned by the Company or in
        which
        the Company may have or may hereafter acquire any interest, and all
        replacements, additions, accessions, substitutions and proceeds thereof,
        arising
        from the sale or disposition thereof, and where applicable, the proceeds
        of
        insurance and of any tort claims involving any of the foregoing;

      

      (b)    all
        inventory of the Company, including, but not limited to, all goods, wares,
        merchandise, parts, supplies, finished products, other tangible personal
        property, including such inventory as is temporarily out of Company’s custody or
        possession and including any returns upon any accounts or other proceeds,
        including insurance proceeds, resulting from the sale or disposition of any
        of
        the foregoing;

      

      (c)    all
        contract rights and general intangibles of the Company, including, without
        limitation, goodwill, trademarks, trade styles, trade names, leasehold
        interests, partnership or joint venture interests, patents and patent
        applications, copyrights, deposit accounts whether now owned or hereafter
        created;

      

      (d)    all
        documents, warehouse receipts, instruments and chattel paper of the Company
        whether now owned or hereafter created;

      

      (e)    all
        accounts and other receivables, instruments or other forms of obligations
        and
        rights to payment of the Company (herein collectively referred to as
“Accounts”),
        together with the proceeds thereof, all goods represented by such Accounts
        and
        all such goods that may be returned by the Company’s customers, and all proceeds
        of any insurance thereon, and all guarantees, securities and liens which
        the
        Company may hold for the payment of any such Accounts including, without
        limitation, all rights of stoppage in transit, replevin and reclamation and
        as
        an unpaid vendor and/or lienor, all of which the Company represents and warrants
        will be bona fide and existing obligations of its respective customers, arising
        out of the sale of goods by the Company in the ordinary course of
        business;

      

      (f)    to
        the
        extent assignable, all of the Company’s rights under all present and future
        authorizations, permits, licenses and franchises issued or granted in connection
        with the operations of any of its facilities;

      

      (g)    all
        products and proceeds (including, without limitation, insurance proceeds)
        from
        the above-described Pledged Property.

       

      
        
           

        

        
          A-1Exhibit
        4.7

       

      ESCROW
        AGREEMENT

       

      THIS
        ESCROW AGREEMENT
        (this
“Agreement”)
        is
        made and entered into as of December 8, 2005 TRIANGLE
        PETROLEUM CORPORATION, a
        Nevada
        corporation (the “Company”);
        the
        Buyer(s) listed on the Securities Purchase Agreement, dated the date
        hereof (also referred to as the “Investor(s)”),
        and
DAVID
        GONZALEZ, ESQ.,
        as
        Escrow Agent hereunder (the “Escrow
        Agent”).

       

      BACKGROUND

       

      WHEREAS,
        the
        Company and the Investor(s) have entered into a Securities Purchase Agreement
        (the “Securities
        Purchase Agreement”),
        dated
        as of the date hereof, pursuant to which the Company proposes to sell secured
        convertible debentures (the “Convertible
        Debentures”)
        which
        shall be convertible into the Company’s Common Stock, par value $0.00001 per
        share (the “Common
        Stock”),
        for a
        total purchase price of up to Fifteen Million Dollars ($15,000,000). The
        Securities Purchase Agreement provides that the Investor(s) shall deposit
        the
        purchase amount in a segregated escrow account to be held by Escrow Agent
        in
        order to effectuate a disbursement to the Company at a closing to be held
        as set
        forth in the Securities Purchase Agreement (the “Closing”).

       

      WHEREAS,
        the
        Company intends to sell Convertible Securities (the “Offering”).

       

      WHEREAS,
        Escrow
        Agent has agreed to accept, hold, and disburse the funds deposited with it
        in
        accordance with the terms of this Agreement.

       

      WHEREAS,
        in
        order to establish the escrow of funds and to effect the provisions of the
        Securities Purchase Agreement, the parties hereto have entered into this
        Agreement.

       

      NOW
        THEREFORE,
        in
        consideration of the foregoing, it is hereby agreed as follows:

       

      1.  Definitions.
        The
        following terms shall have the following meanings when used herein:

       

      a.  “Escrow
        Funds”
        shall
        mean the funds deposited with Escrow Agent pursuant to this
        Agreement.

       

      b.  “Joint
        Written Direction” shall
        mean a written direction
        executed by the Investor(s) and the Company directing Escrow Agent to disburse
        all or a portion of the Escrow Funds or to take or refrain from taking any
        action pursuant to this Agreement.

       

      c.  “Escrow
        Period”
        shall
        begin with the commencement of the Offering and shall terminate upon the
        earlier
        to occur of the following dates:

       

      (i)  The
        date
        upon which Escrow Agent confirms that it has received in the Escrow Account
        all
        of the proceeds of the sale of the Convertible Debentures; 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (ii)  The
        expiration of twenty (20) days from the date of commencement of the Offering
        (unless extended by mutual written agreement between the Company and the
        Investor(s) with a copy of such extension to Escrow Agent); or

       

      (iii)  The
        date
        upon which a determination is made by the Company and the Investor(s) to
        terminate the Offering prior to the sale of all the Convertible
        Debentures.

       

      During
        the Escrow Period, the Company and the Investor(s) are aware that they are
        not
        entitled to any funds received into escrow and no amounts deposited in the
        Escrow Account shall become the property of the Company or the Investor(s)
        or
        any other entity, or be subject to the debts of the Company or the Investor(s)
        or any other entity.

       

      2.  Appointment
        of and Acceptance by Escrow Agent.
        The
        Investor(s) and the Company hereby appoint Escrow Agent to serve as Escrow
        Agent
        hereunder. Escrow Agent hereby accepts such appointment and, upon receipt
        by
        wire transfer of the Escrow Funds in accordance with Section 3 below, agrees
        to
        hold, invest and disburse the Escrow Funds in accordance with this
        Agreement.

       

      a.  The
        Company hereby acknowledges that the Escrow Agent is general counsel to the
        Investor(s), a partner in the general partner of the Investor(s), and counsel
        to
        the Investor(s) in connection with the transactions contemplated and referred
        herein. The Company agrees that in the event of any dispute arising in
        connection with this Escrow Agreement or otherwise in connection with any
        transaction or agreement contemplated and referred herein, the Escrow Agent
        shall be permitted to continue to represent the Investor(s) and the Company
        will
        not seek to disqualify such counsel. 

       

      3.  Creation
        of Escrow Funds.
        On or
        prior to the date of the commencement of the Offering, the parties shall
        establish an escrow account with the Escrow Agent, which escrow account shall
        be
        entitled as follows: Triangle Petroleum Corporation/Cornell Capital Partners,
        LP
        Escrow Account for the deposit of the Escrow Funds. The Investor(s) will
        instruct subscribers to wire funds to the account of the Escrow Agent as
        follows:

       

      
        	
                 

                Bank:

                 

              	
                 

                Wachovia,
                  N.A. of New Jersey

                 

              
	
                 

                Routing
                  #:

                 

              	
                 

                031201467

                 

              
	
                 

                Account
                  #:

                 

              	
                 

                2000014931134

                 

              
	
                 

                Name
                  on Account:

                 

              	
                 

                David
                  Gonzalez Attorney Trust Account

                 

              
	
                 

                Name
                  on Sub-Account:

                 

              	
                 

                Triangle
                  Petroleum Corporation/Cornell Capital Partners, LP Escrow
                  Account

                 

              
	 	 

      

      4.  Deposits
        into the Escrow Account.
        The
        Investor(s) agrees that they shall promptly deliver funds for the payment
        of the
        Convertible Debentures to Escrow Agent for deposit in the Escrow
        Account.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

         

      

      5.  Disbursements
        from the Escrow Account.

       

      a.  The
        Escrow Agent will continue to hold such funds until Cornell Capital Partners,
        LP
        on behalf of the Investor(s) and Company execute a Joint Written Direction
        directing the Escrow Agent to disburse the Escrow Funds pursuant to Joint
        Written Direction signed by the Company and the Investor(s). In disbursing
        such
        funds, Escrow Agent is authorized to rely upon such Joint Written Direction
        from
        the Company and the Investor(s) and may accept any signatory from the Company
        listed on the signature page to this Agreement and any signature from the
        Investor(s) that the Escrow Agent already has on file.

       

      b.  In
        the
        event Escrow Agent does not receive the amount of the Escrow Funds from the
        Investor(s), Escrow Agent shall notify the Company and the Investor(s). Upon
        receipt of payment instructions from the Company, Escrow Agent shall refund
        to
        each subscriber without interest the amount received from each Investor(s),
        without deduction, penalty, or expense to the subscriber. The purchase money
        returned to each subscriber shall be free and clear of any and all claims
        of the
        Company, the Investor(s) or any of their creditors.

       

      c.  In
        the
        event Escrow Agent does receive the amount of the Escrow Funds prior to
        expiration of the Escrow Period, in no event will the Escrow Funds be released
        to the Company until such amount is received by Escrow Agent in collected
        funds.
        For purposes of this Agreement, the term “collected funds” shall mean all funds
        received by Escrow Agent which have cleared normal banking channels and are
        in
        the form of cash.

       

      6.  Collection
        Procedure.
        Escrow
        Agent is hereby authorized to deposit the proceeds of each wire in the Escrow
        Account.

       

      7.  Suspension
        of Performance: Disbursement Into Court.
        If at
        any time, there shall exist any dispute between the Company and the Investor(s)
        with respect to holding or disposition of any portion of the Escrow Funds
        or any
        other obligations of Escrow Agent hereunder, or if at any time Escrow Agent
        is
        unable to determine, to Escrow Agent’s sole satisfaction, the proper disposition
        of any portion of the Escrow Funds or Escrow Agent’s proper actions with respect
        to its obligations hereunder, or if the parties have not within thirty (30)
        days
        of the furnishing by Escrow Agent of a notice of resignation pursuant to
        Section
        9 hereof, appointed a successor Escrow Agent to act hereunder, then Escrow
        Agent
        may, in its sole discretion, take either or both of the following
        actions:

       

      a.  suspend
        the performance of any of its obligations (including without limitation any
        disbursement obligations) under this Escrow Agreement until such dispute
        or
        uncertainty shall be resolved to the sole satisfaction of Escrow Agent or
        until
        a successor Escrow Agent shall be appointed (as the case may be); provided
        however, Escrow Agent shall continue to invest the Escrow Funds in accordance
        with Section 8 hereof; and/or

       

      b.  petition
        (by means of an interpleader action or any other appropriate method) any
        court
        of competent jurisdiction in any venue convenient to Escrow Agent, for
        instructions with respect to such dispute or uncertainty, and to the extent
        required by law, pay into such court, for holding and disposition in accordance
        with the instructions of such court, all funds held by it in the Escrow Funds,
        after deduction and payment to Escrow Agent of all fees and expenses (including
        court costs and attorneys’ fees) payable to, incurred by, or expected to be
        incurred by Escrow Agent in connection with performance of its duties and
        the
        exercise of its rights hereunder.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

         

      

      c.  Escrow
        Agent shall have no liability to the Company, the Investor(s), or any person
        with respect to any such suspension of performance or disbursement into court,
        specifically including any liability or claimed liability that may arise,
        or be
        alleged to have arisen, out of or as a result of any delay in the disbursement
        of funds held in the Escrow Funds or any delay in with respect to any other
        action required or requested of Escrow Agent.

       

      8.  Investment
        of Escrow Funds.
        Escrow
        Agent shall deposit the Escrow Funds in a non-interest bearing account.

       

      If
        Escrow
        Agent has not received a Joint Written Direction at any time that an investment
        decision must be made, Escrow Agent shall maintain the Escrow Funds, or such
        portion thereof, as to which no Joint Written Direction has been received,
        in a
        non-interest bearing account. 

       

      9.  Resignation
        and Removal of Escrow Agent.
        Escrow
        Agent may resign from the performance of its duties hereunder at any time
        by
        giving thirty (30) days’ prior written notice to the parties or may be removed,
        with or without cause, by the parties, acting jointly, by furnishing a Joint
        Written Direction to Escrow Agent, at any time by the giving of ten (10)
        days’
        prior written notice to Escrow Agent as provided herein below. Upon any such
        notice of resignation or removal, the representatives of the Investor(s)
        and the
        Company identified in Sections 13a.(iv) and 13b.(iv), below, jointly shall
        appoint a successor Escrow Agent hereunder, which shall be a commercial bank,
        trust company or other financial institution with a combined capital and
        surplus
        in excess of $10,000,000.00. Upon the acceptance in writing of any appointment
        of Escrow Agent hereunder by a successor Escrow Agent, such successor Escrow
        Agent shall thereupon succeed to and become vested with all the rights, powers,
        privileges and duties of the retiring Escrow Agent, and the retiring Escrow
        Agent shall be discharged from its duties and obligations under this Escrow
        Agreement, but shall not be discharged from any liability for actions taken
        as
        Escrow Agent hereunder prior to such succession. After any retiring Escrow
        Agent’s resignation or removal, the provisions of this Escrow Agreement shall
        inure to its benefit as to any actions taken or omitted to be taken by it
        while
        it was Escrow Agent under this Escrow Agreement. The retiring Escrow Agent
        shall
        transmit all records pertaining to the Escrow Funds and shall pay all funds
        held
        by it in the Escrow Funds to the successor Escrow Agent, after making copies
        of
        such records as the retiring Escrow Agent deems advisable and after deduction
        and payment to the retiring Escrow Agent of all fees and expenses (including
        court costs and attorneys’ fees) payable to, incurred by, or expected to be
        incurred by the retiring Escrow Agent in connection with the performance
        of its
        duties and the exercise of its rights hereunder.

       

      10.  Liability
        of Escrow Agent.

       

      a.  Escrow
        Agent shall have no liability or obligation with respect to the Escrow Funds
        except for Escrow Agent’s willful misconduct or gross negligence. Escrow Agent’s
        sole responsibility shall be for the safekeeping, investment, and disbursement
        of the Escrow Funds in accordance with the terms of this Agreement. Escrow
        Agent
        shall have no implied duties or obligations and shall not be charged with
        knowledge or notice or any fact or circumstance not specifically set forth
        herein. Escrow Agent may rely upon any instrument, not only as to its due
        execution, validity and effectiveness, but also as to the truth and accuracy
        of
        any information contained herein, which Escrow Agent shall in good faith
        believe
        to be genuine, to have been signed or presented by the person or parties
        purporting to sign the same and conform to the provisions of this Agreement.
        In
        no event shall Escrow Agent be liable for incidental, indirect, special,
        and
        consequential or punitive damages. Escrow Agent shall not be obligated to
        take
        any legal action or commence any proceeding in connection with the Escrow
        Funds,
        any account in which Escrow Funds are deposited, this Agreement or the Purchase
        Agreement, or to appear in, prosecute or defend any such legal action or
        proceeding. Escrow Agent may consult legal counsel selected by it in any
        event
        of any dispute or question as to construction of any of the provisions hereof
        or
        of any other agreement or its duties hereunder, or relating to any dispute
        involving any party hereto, and shall incur no liability and shall be fully
        indemnified from any liability whatsoever in acting in accordance with the
        opinion or instructions of such counsel. The Company and the Investor(s)
        jointly
        and severally shall promptly pay, upon demand, the reasonable fees and expenses
        of any such counsel.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

         

      

      b.  Escrow
        Agent is hereby authorized, in its sole discretion, to comply with orders
        issued
        or process entered by any court with respect to the Escrow Funds, without
        determination by Escrow Agent of such court’s jurisdiction in the matter. If any
        portion of the Escrow Funds is at any time attached, garnished or levied
        upon
        under any court order, or in case the payment, assignment, transfer, conveyance
        or delivery of any such property shall be stayed or enjoined by any court
        order,
        or in any case any order judgment or decree shall be made or entered by any
        court affecting such property or any part thereof, then and in any such event,
        Escrow Agent is authorized, in its sole discretion, to rely upon and comply
        with
        any such order, writ judgment or decree which it is advised by legal counsel
        selected by it, binding upon it, without the need for appeal or other action;
        and if Escrow Agent complies with any such order, writ, judgment or decree,
        it
        shall not be liable to any of the parties hereto or to any other person or
        entity by reason of such compliance even though such order, writ judgment
        or
        decree may be subsequently reversed, modified, annulled, set aside or
        vacated.

       

      11.  Indemnification
        of Escrow Agent.
        From and
        at all times after the date of this Agreement, the parties jointly and
        severally, shall, to the fullest extent permitted by law and to the extent
        provided herein, indemnify and hold harmless Escrow Agent and each director,
        officer, employee, attorney, agent and affiliate of Escrow Agent (collectively,
        the “Indemnified
        Parties”)
        against any and all actions, claims (whether or not valid), losses, damages,
        liabilities, costs and expenses of any kind or nature whatsoever (including
        without limitation reasonable attorney’s fees, costs and expenses) incurred by
        or asserted against any of the Indemnified Parties from and after the date
        hereof, whether direct, indirect or consequential, as a result of or arising
        from or in any way relating to any claim, demand, suit, action, or proceeding
        (including any inquiry or investigation) by any person, including without
        limitation the parties to this Agreement, whether threatened or initiated,
        asserting a claim for any legal or equitable remedy against any person under
        any
        statute or regulation, including, but not limited to, any federal or state
        securities laws, or under any common law or equitable cause or otherwise,
        arising from or in connection with the negotiation, preparation, execution,
        performance or failure of performance of this Agreement or any transaction
        contemplated herein, whether or not any such Indemnified Party is a party
        to any
        such action or proceeding, suit or the target of any such inquiry or
        investigation; provided, however, that no Indemnified Party shall have the
        right
        to be indemnified hereunder for liability finally determined by a court of
        competent jurisdiction, subject to no further appeal, to have resulted from
        the
        gross negligence or willful misconduct of such Indemnified Party. If any
        such
        action or claim shall be brought or asserted against any Indemnified Party,
        such
        Indemnified Party shall promptly notify the Company and the Investor(s)
        hereunder in writing, and the Investor(s) and the Company shall assume the
        defense thereof, including the employment of counsel and the payment of all
        expenses. Such Indemnified Party shall, in its sole discretion, have the
        right
        to employ separate counsel (who may be selected by such Indemnified Party
        in its
        sole discretion) in any such action and to participate and to participate
        in the
        defense thereof, and the fees and expenses of such counsel shall be paid
        by such
        Indemnified Party, except that the Investor(s) and/or the Company shall be
        required to pay such fees and expense if (a) the Investor(s) or the Company
        agree to pay such fees and expenses, or (b) the Investor(s) and/or the Company
        shall fail to assume the defense of such action or proceeding or shall fail,
        in
        the sole discretion of such Indemnified Party, to employ counsel reasonably
        satisfactory to the Indemnified Party in any such action or proceeding, (c)
        the
        Investor(s) and the Company are the plaintiff in any such action or proceeding
        or (d) the named or potential parties to any such action or proceeding
        (including any potentially impleaded parties) include both the Indemnified
        Party, the Company and/or the Investor(s) and the Indemnified Party shall
        have
        been advised by counsel that there may be one or more legal defenses available
        to it which are different from or additional to those available to the Company
        or the Investor(s). The Investor(s) and the Company shall be jointly and
        severally liable to pay fees and expenses of counsel pursuant to the preceding
        sentence, except that any obligation to pay under clause (a) shall apply
        only to
        the party so agreeing. All such fees and expenses payable by the Company
        and/or
        the Investor(s) pursuant to the foregoing sentence shall be paid from time
        to
        time as incurred, both in advance of and after the final disposition of such
        action or claim. The obligations of the parties under this section shall
        survive
        any termination of this Agreement, and resignation or removal of the Escrow
        Agent shall be independent of any obligation of Escrow Agent.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

      

      The
        parties agree that neither payment by the Company or the Investor(s) of any
        claim by Escrow Agent for indemnification hereunder shall impair, limit,
        modify,
        or affect, as between the Investor(s) and the Company, the respective rights
        and
        obligations of Investor(s), on the one hand, and the Company, on the other
        hand.

       

      12.  Expenses
        of Escrow Agent.
        Except
        as set forth in Section 11 the Company shall reimburse Escrow Agent for all
        of
        its reasonable out-of-pocket expenses, including attorneys’ fees, travel
        expenses, telephone and facsimile transmission costs, postage (including
        express
        mail and overnight delivery charges), copying charges and the like. All of
        the
        compensation and reimbursement obligations set forth in this Section shall
        be
        payable by the Company, upon demand by Escrow Agent. The obligations of the
        Company under this Section shall survive any termination of this Agreement
        and
        the resignation or removal of Escrow Agent.

       

      13.  Warranties.

       

      a.  The
        Investor(s) makes the following representations and warranties to Escrow
        Agent:

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

         

      

      (i)  The
        Investor(s) has full power and authority to execute and deliver this Agreement
        and to perform its obligations hereunder.

       

      (ii)  This
        Agreement has been duly approved by all necessary action of the Investor(s),
        including any necessary approval of the limited partner of the Investor(s)
        or
        necessary corporate approval, as applicable, has been executed by duly
        authorized officers of the Investor(s), enforceable in accordance with its
        terms.

       

      (iii)  The
        execution, delivery, and performance of the Investor(s) of this Agreement
        will
        not violate, conflict with, or cause a default under any agreement of limited
        partnership of Investor(s) or the articles of incorporation or bylaws of
        the
        Investor(s) (as applicable), any applicable law or regulation, any
        court
        order or administrative ruling or degree to which the Investor(s) is a party
        or
        any of its property is subject, or any agreement, contract, indenture, or
        other
        binding arrangement.

       

      (iv)  Mark
        Angelo has been duly appointed to act as the representative of the Investor(s)
        hereunder and has full power and authority to execute, deliver, and perform
        this
        Escrow Agreement, to execute and deliver any Joint Written Direction, to
        amend,
        modify, or waive any provision of this Agreement, and to take any and all
        other
        actions as the Investor(s)’s representative under this Agreement, all without
        further consent or direction form, or notice to, the Investor(s) or any other
        party.

       

      (v)  No
        party
        other than the parties hereto and the Investor(s)s have, or shall have, any
        lien, claim or security interest in the Escrow Funds or any part thereof.
        No
        financing statement under the Uniform Commercial Code is on file in any
        jurisdiction claiming a security interest in or describing (whether specifically
        or generally) the Escrow Funds or any part thereof.

       

      (vi)  All
        of
        the representations and warranties of the Investor(s) contained herein are
        true
        and complete as of the date hereof and will be true and complete at the time
        of
        any disbursement from the Escrow Funds.

       

      b.  The
        Company makes the following representations and warranties to the Escrow
        Agent:

       

      (i)  The
        Company is
        a
        corporation duly organized, validly existing, and in good standing under
        the
        laws of the State of Nevada and has full power and authority to execute and
        deliver this Agreement and to perform its obligations hereunder.

       

      (ii)  This
        Agreement has been duly approved by all necessary corporate action of the
        Company, including any necessary shareholder approval, has been executed
        by duly
        authorized officers of the Company, enforceable in accordance with its
        terms.

       

      (iii)  The
        execution, delivery, and performance by the Company of this Agreement is
        in
        accordance with the Securities Purchase Agreement and will not violate, conflict
        with, or cause a default under the certificate of incorporation or bylaws
        of the
        Company, any applicable law or regulation, any court order or administrative
        ruling or decree to which the Company is a party or any of its property is
        subject, or any agreement, contract, indenture, or other binding arrangement,
        including without limitation to the Securities Purchase Agreement, to which
        the
        Company is a party.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

         

      

      (iv)  Mark
        Gustafson has been duly appointed to act as the representative of the Company
        hereunder and has full power and authority to execute, deliver, and perform
        this
        Agreement, to execute and deliver any Joint Written Direction, to amend,
        modify
        or waive any provision of this Agreement and to take all other actions as
        the
        Company’s Representative under this Agreement, all without further consent or
        direction from, or notice to, the Company or any other party.

       

      (v)  No
        party
        other than the parties hereto and the Investor(s)s have, or shall have, any
        lien, claim or security interest in the Escrow Funds or any part thereof.
        No
        financing statement under the Uniform Commercial Code is on file in any
        jurisdiction claiming a security interest in or describing (whether specifically
        or generally) the Escrow Funds or any part thereof.

       

      (vi)  All
        of
        the representations and warranties of the Company contained herein are true
        and
        complete as of the date hereof and will be true and complete at the time
        of any
        disbursement from the Escrow Funds.

       

      14.  Consent
        to Jurisdiction and Venue.
        In the
        event that any party hereto commences a lawsuit or other proceeding relating
        to
        or arising from this Agreement, the parties hereto agree that the United
        States
        District Court for the District of New Jersey shall have the sole and exclusive
        jurisdiction over any such proceeding. If all such courts lack federal subject
        matter jurisdiction, the parties agree that the Superior Court Division of
        New
        Jersey, Chancery Division of Hudson County shall have sole and exclusive
        jurisdiction. Any of these courts shall be proper venue for any such lawsuit
        or
        judicial proceeding and the parties hereto waive any objection to such venue.
        The parties hereto consent to and agree to submit to the jurisdiction of
        any of
        the courts specified herein and agree to accept the service of process to
        vest
        personal jurisdiction over them in any of these courts.

       

      15.  Notice.
        All
        notices and other communications hereunder shall be in writing and shall
        be
        deemed to have been validly served, given or delivered five (5) days after
        deposit in the United States mails, by certified mail with return receipt
        requested and postage prepaid, when delivered personally, one (1) day delivered
        to any overnight courier, or when transmitted by facsimile transmission and
        upon
        confirmation of receipt and addressed to the party to be notified as
        follows:

       

      
        	
                If
                  to Investor(s), to:

              	
                Cornell
                  Capital Partners, LP

              
	 	
                101
                  Hudson Street - Suite 3700

              
	 	
                Jersey
                  City, NJ 07302

              
	 	
                Attention: Mark
                  Angelo

              
	 	
                Portfolio
                  Manager

              
	 	
                Telephone: (201)
                  985-8300

              
	 	
                Facsimile:
                   (201)
                  985-8266

              

         

        
          
             

          

          
            8

            
              

            

          

          
             

          

        

         

        
          	
                  If
                    to Escrow Agent, to:

                	
                  David
                    Gonzalez, Esq.

                
	 	
                  101
                    Hudson Street - Suite 3700

                
	 	
                  Jersey
                    City, NJ 07302

                
	 	
                  Telephone: (201)
                    985-8300

                
	 	
                  Facsimile: (201)
                    985-8266

                
	 	 
	
                  If
                    to the Company, to:

                	
                  Triangle
                    Petroleum Corporation

                
	 	
                  Suite
                    1110, 521-3rd
                    Avenue, SW

                
	 	
                  Calgary,
                    Alberta, Canada T2P 3T3

                
	 	
                  Attention:
                    Mark Gustafson

                
	 	
                  Telephone: (403)
                    262-4471

                
	 	
                  Facsimile: (403)
                    262-4472

                
	 	 
	
                  With
                    a copy to:

                	
                  Sichenzia
                    Ross Friedman Ference LLP

                
	 	
                  1065
                    Avenue of the Americas

                
	 	
                  New
                    York, NY 10018

                
	 	
                  Attention: Thomas
                    A. Rose, Esq.

                
	 	
                  Telephone: (212)
                    930-9700

                
	 	
                  Facsimile: (212)
                    930-9725

                
	 	 

        

      

      Or
        to
        such other address as each party may designate for itself by like
        notice.

       

      16.  Amendments
        or Waiver.
        This
        Agreement may be changed, waived, discharged or terminated only by a writing
        signed by the parties hereto. No delay or omission by any party in exercising
        any right with respect hereto shall operate as waiver. A waiver on any one
        occasion shall not be construed as a bar to, or waiver of, any right or remedy
        on any future occasion.

       

      17.  Severability.
        To the
        extent any provision of this Agreement is prohibited by or invalid under
        applicable law, such provision shall be ineffective to the extent of such
        prohibition, or invalidity, without invalidating the remainder of such provision
        or the remaining provisions of this Agreement.

       

      18.  Governing
        Law.
        This
        Agreement shall be construed and interpreted in accordance with the internal
        laws of the State of New Jersey without giving effect to the conflict of
        laws
        principles thereof.

       

      19.  Entire
        Agreement.
        This
        Agreement constitutes the entire Agreement between the parties relating to
        the
        holding, investment, and disbursement of the Escrow Funds and sets forth
        in
        their entirety the obligations and duties of the Escrow Agent with respect
        to
        the Escrow Funds.

       

      20.  Binding
        Effect.
        All of
        the terms of this Agreement, as amended from time to time, shall be binding
        upon, inure to the benefit of and be enforceable by the respective heirs,
        successors and assigns of the Investor(s), the Company, or the Escrow
        Agent.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

         

      

      21.  Execution
        of Counterparts.
        This
        Agreement and any Joint Written Direction may be executed in counter parts,
        which when so executed shall constitute one and same agreement or
        direction.

       

      22.  Termination.
        Upon the
        first to occur of the disbursement of all amounts in the Escrow Funds pursuant
        to Joint Written Directions or the disbursement of all amounts in the Escrow
        Funds into court pursuant to Section 7 hereof, this Agreement shall terminate
        and Escrow Agent shall have no further obligation or liability whatsoever
        with
        respect to this Agreement or the Escrow Funds.

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
 

      
        
          
             

          

           

        

        
          10

          
            

          

        

        
           

        

      

      

      IN
        WITNESS WHEREOF
        the
        parties have hereunto set their hands and seals the day and year above set
        forth.

       

      
        	 	 	 
	 	
                Triangle
                  Petroleum Corporation

              
	 
 	 
 	 
 
	 	By:  	/s/ MARK
                GUSTAFSON
	 	
                

                Name: Mark
                  Gustafson

              
	 	
                Title: Chief
                  Executive Officer

              

      

      
        	 	 	 
	 	 	 
	 	 	 
	 	
                Cornell
                  Capital Partners, LP

              
	 
 	 
 	 
 
	 	By:  	Yorkville
                Advisors, LLC
	 	Its:	General
                Partner

        	 	 	 
	 	 	 
	 	By:  	/s/ MARK
                ANGELO
	 	
                

                Name: Mark
                  Angelo

              
	 	
                Title: Portfolio
                  Manager

              
	 	 

      

      
        	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ DAVID
                GONZALEZ
	 	
                

                Name: David
                  Gonzalez, Esq.

              

      

       

       

      
        
           

        

        
          11

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