Document:

PURCHASE
        AGREEMENT

      

      

      THIS
        PURCHASE AGREEMENT (“Agreement”) is made as of the 14th day of June, 2005 by and
        among Triangle Petroleum Corporation, a Nevada corporation (the “Company”), and
        the Investor set forth on the signature page affixed hereto (the
“Investor”).

      

      Recitals

      

      A. The
        Company and the Investor are executing and delivering this Agreement in reliance
        upon the exemption from securities registration afforded by the provisions
        of
        Regulation D (“Regulation D”), as promulgated by the U.S. Securities and
        Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended;
        and

      

      B. The
        Investor wishes to purchase from the Company, and the Company wishes to sell
        and
        issue to the Investor, upon the terms and conditions stated in this Agreement,
        (i) an aggregate of $6,000,000 principal amount of 8% convertible debentures
        in
        the form attached hereto as Exhibit A (the “Debentures”), and (ii) warrants to
        purchase an aggregate of 6,000,000 shares of the Company common stock (the
        “Common Stock “), at an exercise price of $1.00 per share (subject to
        adjustment) in the form attached hereto as Exhibit B (the “Warrants”);
        and

      

      C. Contemporaneous
        with the initial sale of the Debentures and Warrants, the parties hereto
        will
        execute and deliver a Registration Rights Agreement, in the form attached
        hereto
        as Exhibit C (the “Registration Rights Agreement”), pursuant to which the
        Company will agree to provide certain registration rights under the Securities
        Act of 1933, as amended, and the rules and regulations promulgated thereunder,
        and applicable state securities laws.

      

      In
        consideration of the mutual promises made herein and for other good and valuable
        consideration, the receipt and sufficiency of which are hereby acknowledged,
        the
        parties hereto agree as follows:

      

      1. Definitions.
        In
        addition to those terms defined above and elsewhere in this Agreement, for
        the
        purposes of this Agreement, the following terms shall have the meanings set
        forth below:

      

      “Affiliate”
        means,
        with respect to any Person, any other Person which directly or indirectly
        through one or more intermediaries Controls, is controlled by, or is under
        common control with, such Person.

      

      “Business
        Day”
        means a
        day, other than a Saturday or Sunday, on which banks in New York City are
        open
        for the general transaction of business.

      

      “Common
        Stock Equivalents”
        means
        any securities of the Company or the Subsidiaries which would entitle the
        holder
        thereof to acquire at any time Common Stock, including without limitation,
        any
        debt, preferred stock, rights, options, warrants or other instrument that
        is at
        any time convertible into or exchangeable for, or otherwise entitles the
        holder
        thereof to receive, Common Stock.

      

      
        
           

        

        
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      “Company’s
        Knowledge”
        means
        the actual knowledge of the executive officers (as defined in Rule 405 under
        the
        1933 Act) of the Company, after due inquiry.

      

      “Confidential
        Information”
        means
        trade secrets, confidential information and know-how (including but not limited
        to ideas, formulae, compositions, processes, procedures and techniques, research
        and development information, computer program code, performance specifications,
        support documentation, drawings, specifications, designs, business and marketing
        plans, and customer and supplier lists and related information).

      

      “Control”
        (including the terms “controlling”, “controlled by” or “under common control
        with”) means the possession, direct or indirect, of the power to direct or cause
        the direction of the management and policies of a Person, whether through
        the
        ownership of voting securities, by contract or otherwise.

      

      “Effective
        Date”
        means
        the date on which the initial Registration Statement (as defined in the
        Registration Rights Agreement) is declared effective by the SEC.

      

      “Effectiveness
        Deadline”
        means
        the date on which the initial Registration Statement (as so defined) is required
        to be declared effective by the SEC under the terms of the Registration Rights
        Agreement.

      

      “Intellectual
        Property”
        means
        all of the following: (i) patents, patent applications, patent disclosures
        and
        inventions (whether or not patentable and whether or not reduced to practice);
        (ii) trademarks, service marks, trade dress, trade names, corporate names,
        logos, slogans and Internet domain names, together with all goodwill associated
        with each of the foregoing; (iii) copyrights and copyrightable works; (iv)
        registrations, applications and renewals for any of the foregoing; and (v)
        proprietary computer software (including but not limited to data, data bases
        and
        documentation).

      

      “Material
        Adverse Effect”
        means a
        material adverse effect on (i) the assets, liabilities, results of operations,
        condition (financial or otherwise), business, or prospects of the Company
        and
        its Subsidiaries taken as a whole, or (ii) the ability of the Company to
        perform
        its obligations under the Transaction Documents.

      

      “Person”
        means
        an individual, corporation, partnership, limited liability company, trust,
        business trust, association, joint stock company, joint venture, sole
        proprietorship, unincorporated organization, governmental authority or any
        other
        form of entity not specifically listed herein.

      

      “Purchase
        Price”
        means
        Six Million Dollars ($6,000,000).

      

      

      
        
           

        

        
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      “SEC
        Filings”
        has the
        meaning set forth in Section 4.6.

      

      “Registration
        Statement”
        has the
        meaning set forth in the Registration Rights Agreement.

      

      “SEC”
        mean the United States Securities and Exchange Commission.

      

      “Securities”
        means
        the Debentures, the Shares, the Warrants and the Warrant Shares.

      

      “Shares”
        means
        the shares of Common Stock issuable upon conversion of the
        Debenture.

      

      “Subsidiary”
        of any
        Person means another Person, an amount of the voting securities, other voting
        ownership or voting partnership interests of which is sufficient to elect
        at
        least a majority of its Board of Directors or other governing body (or, if
        there
        are no such voting interests, 50% or more of the equity interests of which)
        is
        owned directly or indirectly by such first Person.

      

      “Transaction
        Documents”
        means
        this Agreement, the Debenture, the Warrants and the Registration Rights
        Agreement.

      

      “Warrant
        Shares”
        means
        the shares of Common Stock issuable upon the exercise of the
        Warrants.

      

      “1933
        Act”
        means
        the Securities Act of 1933, as amended, or any successor statute, and the
        rules
        and regulations promulgated thereunder.

      

      “1934
        Act”
        means
        the Securities Exchange Act of 1934, as amended, or any successor statute,
        and
        the rules and regulations promulgated thereunder.

      

      2. Purchase
        and Sale of the Debentures and Warrants.
        Subject
        to the terms and conditions of this Agreement, on the initial Closing Date,
        the
        Company shall sell and issue to the Investor, a Debenture in the principal
        amount of $1,000,000, together with Warrants to purchase 1,000,000 Shares
        in
        exchange for $1,000,000. The Investor, in its sole and absolute discretion,
        shall have the option but not the obligation not later than thirty (30) days
        after the Closing Date, to require the Company to sell and issue to the
        Investor, an additional Debenture in the principal amount of up to $2,500,000
        (the actual amount to be determined in the discretion of the Investor), together
        with additional Warrants to purchase 2,500,000 Shares in exchange for
        $2,500,000. The Investor, in its sole and absolute discretion, shall have
        the
        option but not the obligation not later than sixty (60) days after the Closing
        Date, to require the Company to sell and issue to the Investor, an additional
        Debenture in the principal amount of up to $2,500,000 (the actual amount
        to be
        determined in the discretion of the Investor), together with additional Warrants
        to purchase 2,500,000 Shares in exchange for $2,500,000. 

      

      
        
           

        

        
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      3. Closing.
        Upon
        confirmation that the other conditions to closing specified herein have been
        satisfied or duly waived by the Investor, the Company shall deliver to the
        Investor, a Debenture and Warrants, registered the name of the Investor,
        and the
        Investor shall cause a wire transfer in same day funds to be sent to the
        account
        of the Company as instructed in writing by the Company, in an amount
        representing the Purchase Price for the Debenture and Warrants so purchased
        (the
“Closing Date”). The closing of the purchase and sale of the Debentures and
        Warrants shall take place at the offices of Sichenzia Ross Friedman Ference
        LLP,
        1065 Avenue of the Americas, New York, New York 10018, or at such other location
        and on such other date as the Company and the Investor shall mutually
        agree.

      

      4. Representations
        and Warranties of the Company.
        The
        Company hereby represents and warrants to the Investor that, except as set
        forth
        in the schedules delivered herewith (collectively, the “Disclosure
        Schedules”):

      

      4.
        1 Organization,
        Good Standing and Qualification.
        Each of
        the Company and its Subsidiaries is a corporation duly organized, validly
        existing and in good standing under the laws of the jurisdiction of its
        incorporation and has all requisite corporate power and authority to carry
        on
        its business as now conducted and to own its properties. Each of the Company
        and
        its Subsidiaries is duly qualified to do business as a foreign corporation
        and
        is in good standing in each jurisdiction in which the conduct of its business
        or
        its ownership or leasing of property makes such qualification or leasing
        necessary unless the failure to so qualify has not and could not reasonably
        be
        expected to have a Material Adverse Effect. The Company’s Subsidiaries are
        listed on Schedule
        4.1
        hereto.

      

      4.2 Authorization.
        The
        Company has full power and authority and, has taken all requisite action
        on the
        part of the Company, its officers, directors and stockholders necessary for
        (i)
        the authorization, execution and delivery of the Transaction Documents, (ii)
        authorization of the performance of all obligations of the Company hereunder
        or
        thereunder, and (iii) the authorization, issuance (or reservation for issuance)
        and delivery of the Securities.
        The
        Transaction Documents constitute the legal, valid and binding obligations
        of the
        Company, enforceable against the Company in accordance with their terms,
        subject
        to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
        and
        similar laws of general applicability, relating to or affecting creditors’
        rights generally.

      

      4.3 Capitalization.
        Schedule
        4.3
        sets
        forth (a) the authorized capital stock of the Company on the date hereof;
        (b)
        the number of shares of capital stock issued and outstanding; (c) the number
        of
        shares of capital stock issuable pursuant to the Company’s stock plans; and (d)
        the number of shares of capital stock issuable and reserved for issuance
        pursuant to securities (other than the Securities) exercisable for, or
        convertible into or exchangeable for any shares of capital stock of the Company.
        All of the issued and outstanding shares of the Company’s capital stock have
        been duly authorized and validly issued and are fully paid, nonassessable
        and
        free of pre-emptive rights. Except as described on Schedule
        4.3,
        all of
        the issued and outstanding shares of capital stock of each Subsidiary have
        been
        duly authorized and validly issued and are fully paid, nonassessable and
        free of
        pre-emptive rights, were issued in full compliance with applicable state
        and
        federal securities law and any rights of third parties and are owned by the
        Company, beneficially and of record, subject to no lien, encumbrance or other
        adverse claim. Except as described on Schedule
        4.3,
        no
        Person is entitled to pre-emptive or similar statutory or contractual rights
        with respect to any securities of the Company. Except as described on
Schedule
        4.3,
        there
        are no outstanding warrants, options, convertible securities or other rights,
        agreements or arrangements of any character under which the Company or any
        of
        its Subsidiaries is or may be obligated to issue any equity securities of
        any
        kind and except as contemplated by this Agreement, neither the Company nor
        any
        of its Subsidiaries is currently in negotiations for the issuance of any
        equity
        securities of any kind. Except as described on Schedule
        4.3
        and
        except for the Registration Rights Agreement, there are no voting agreements,
        buy-sell agreements, option or right of first purchase agreements or other
        agreements of any kind among the Company and any of the securityholders of
        the
        Company relating to the securities of the Company held by them. Except as
        described on Schedule
        4.3
        and
        except as provided in the Registration Rights Agreement, no Person has the
        right
        to require the Company to register any securities of the Company under the
        1933
        Act, whether on a demand basis or in connection with the registration of
        securities of the Company for its own account or for the account of any other
        Person.

      

      
        
           

        

        
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      Except
        as
        described on Schedule
        4.3,
        the
        issuance and sale of the Securities hereunder will not obligate the Company
        to
        issue shares of Common Stock or other securities to any other Person (other
        than
        the Investor) and will not result in the adjustment of the exercise, conversion,
        exchange or reset price of any outstanding security.

      

      Except
        as
        described on Schedule
        4.3,
        the
        Company does not have outstanding stockholder purchase rights or “poison pill”
        or any similar arrangement in effect giving any Person the right to purchase
        any
        equity interest in the Company upon the occurrence of certain
        events.

      

      4.4 Valid
        Issuance.
        The
        Debentures have been duly and validly authorized and, when issued and paid
        for
        pursuant to this Agreement, shall be free and clear of all encumbrances and
        restrictions (other than those created by the Investor), except for restrictions
        on transfer set forth in the Transaction Documents or imposed by applicable
        securities laws. The Warrants have been duly and validly authorized. Upon
        the
        due exercise of the Warrants, the Warrant Shares will be validly issued,
        fully
        paid and non-assessable free and clear of all encumbrances and restrictions,
        except for restrictions on transfer set forth in the Transaction Documents
        or
        imposed by applicable securities laws and except for those created by the
        Investor. The Company has reserved a sufficient number of shares of Common
        Stock
        for issuance upon the exercise of the Warrants, free and clear of all
        encumbrances and restrictions, except for restrictions on transfer set forth
        in
        the Transaction Documents or imposed by applicable securities laws and except
        for those created by the Investor.

      

      4.5 Consents.
        The
        execution, delivery and performance by the Company of the Transaction Documents,
        and the offer, issuance and sale of the Securities require no consent of,
        action
        by or in respect of, or filing with, any Person, governmental body, agency,
        or
        official other than filings that have been made pursuant to applicable state
        securities laws, and post-sale filings pursuant to applicable state and federal
        securities laws which the Company undertakes to file within the applicable
        time
        periods. Subject to the accuracy of the representations and warranties of
        the
        Investor set forth in Section 5 hereof, the Company has taken all action
        necessary to exempt (i) the issuance and sale of the Securities, (ii) the
        issuance of the Warrant Shares upon due exercise of the Warrants, and (iii)
        the
        other transactions contemplated by the Transaction Documents from the provisions
        of any shareholder rights plan or other “poison pill” arrangement, any
        anti-takeover, business combination or control share law or statute binding
        on
        the Company or to which the Company or any of its assets and properties may
        be
        subject and any provision of the Company’s Certificate of Incorporation or
        By-laws that is or could reasonably be expected to become applicable to the
        Investor as a result of the transactions contemplated hereby, including without
        limitation, the issuance of the Securities and the ownership, disposition
        or
        voting of the Securities by the Investor or the exercise of any right granted
        to
        the Investor pursuant to this Agreement or the other Transaction
        Documents.

      

      
        
           

        

        
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      4.6 Delivery
        of SEC Filings; Business.
        The
        Company has made available to the Investor through the EDGAR system, true
        and
        complete copies of the Company’s most recent Annual Report on Form 10-KSB for
        its last fiscal year (the “10-KSB”), and all other reports filed by the Company
        pursuant to the 1934 Act since the filing of the 10-KSB and prior to the
        date
        hereof (collectively, the “SEC Filings”). The SEC Filings are the only filings
        required of the Company pursuant to the 1934 Act for such period. The Company
        and its Subsidiaries are engaged in all material respects only in the business
        described in the SEC Filings and the SEC Filings contain a complete and accurate
        description in all material respects of the business of the Company and its
        Subsidiaries, taken as a whole.

      

      4.7 Use
        of
        Proceeds.
        The net
        proceeds of the sale of the Debentures and the Warrants hereunder shall be
        used
        by the Company for acquisitions, working capital and general corporate
        purposes.

      

      4.8 No
        Material Adverse Change.
        Since
        the date of the financial statements contained in the most recent SEC Filings,
        and except as identified and described in the SEC Filings or as described
        on
Schedule
        4.8,
        there
        has not been:

      

      (i) any
        change in the consolidated assets, liabilities, financial condition or operating
        results of the Company from that reflected in the financial statements included
        in the Company’s Quarterly Report on Form 10-KSB for the year ended January 31,
        2005, except for changes in the ordinary course of business which have not
        and
        could not reasonably be expected to have a Material Adverse Effect, individually
        or in the aggregate;

      

      (ii) any
        declaration or payment of any dividend, or any authorization or payment of
        any
        distribution, on any of the capital stock of the Company, or any redemption
        or
        repurchase of any securities of the Company;

      

      (iii) any
        material damage, destruction or loss, whether or not covered by insurance
        to any
        assets or properties of the Company or its Subsidiaries;

      

      (iv) any
        waiver, not in the ordinary course of business, by the Company or any Subsidiary
        of a material right or of a material debt owed to it;

      

      
        
           

        

        
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      (v) any
        satisfaction or discharge of any lien, claim or encumbrance or payment of
        any
        obligation by the Company or a Subsidiary, except in the ordinary course
        of
        business and which is not material to the assets, properties, financial
        condition, operating results or business of the Company and its Subsidiaries
        taken as a whole (as such business is presently conducted and as it is proposed
        to be conducted);

      

      (vi) any
        change or amendment to the Company's Certificate of Incorporation or by-laws,
        or
        material change to any material contract or arrangement by which the Company
        or
        any Subsidiary is bound or to which any of their respective assets or properties
        is subject;

      

      (vii) any
        material labor difficulties or labor union organizing activities with respect
        to
        employees of the Company or any Subsidiary;

      

      (viii) any
        material transaction entered into by the Company or a Subsidiary other than
        in
        the ordinary course of business; 

      

      (ix) the
        loss
        of the services of any key employee, or material change in the composition
        or
        duties of the senior management of the Company or any Subsidiary;

      

      (x) the
        loss
        or threatened loss of any customer which has had or could reasonably be expected
        to have a Material Adverse Effect; or

      

      (xi) any
        other
        event or condition of any character that has had or could reasonably be expected
        to have a Material Adverse Effect.

      

      4.9 SEC
        Filings.

      

      (a) At
        the
        time of filing thereof, the SEC Filings complied as to form in all material
        respects with the requirements of the 1934 Act and did not contain any untrue
        statement of a material fact or omit to state any material fact necessary
        in
        order to make the statements made therein, in the light of the circumstances
        under which they were made, not misleading.

      

      (b) Each
        registration statement and any amendment thereto filed by the Company since
        January 1, 2003 pursuant to the 1933 Act and the rules and regulations
        thereunder, as of the date such statement or amendment became effective,
        complied as to form in all material respects with the 1933 Act and did not
        contain any untrue statement of a material fact or omit to state any material
        fact required to be stated therein or necessary in order to make the statements
        made therein not misleading; and each prospectus filed pursuant to Rule 424(b)
        under the 1933 Act, as of its issue date and as of the closing of any sale
        of
        securities pursuant thereto did not contain any untrue statement of a material
        fact or omit to state any material fact required to be stated therein or
        necessary in order to make the statements made therein, in the light of the
        circumstances under which they were made, not misleading.

      

      
        
           

        

        
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      4.10 No
        Conflict, Breach, Violation or Default.
        The
        execution, delivery and performance of the Transaction Documents by the Company
        and the issuance and sale of the Securities will not conflict with or result
        in
        a breach or violation of any of the terms and provisions of, or constitute
        a
        default under (i) the Company’s Certificate of Incorporation or the Company’s
        Bylaws, both as in effect on the date hereof (true and complete copies of
        which
        have been made available to the Investor through the EDGAR system), or (ii)(a)
        any statute, rule, regulation or order of any governmental agency or body
        or any
        court, domestic or foreign, having jurisdiction over the Company, any Subsidiary
        or any of their respective assets or properties, or (b) any agreement or
        instrument to which the Company or any Subsidiary is a party or by which
        the
        Company or a Subsidiary is bound or to which any of their respective assets
        or
        properties is subject.

      

      4.11 Tax
        Matters.
        Except
        as described on Schedule
        4.11,
        the
        Company and each Subsidiary has timely prepared and filed all tax returns
        required to have been filed by the Company or such Subsidiary with all
        appropriate governmental agencies and timely paid all taxes shown thereon
        or
        otherwise owed by it. The charges, accruals and reserves on the books of
        the
        Company in respect of taxes for all fiscal periods are adequate in all material
        respects, and there are no material unpaid assessments against the Company
        or
        any Subsidiary nor, to the Company’s Knowledge, any basis for the assessment of
        any additional taxes, penalties or interest for any fiscal period or audits
        by
        any federal, state or local taxing authority except for any assessment which
        is
        not material to the Company and its Subsidiaries, taken as a whole. All taxes
        and other assessments and levies that the Company or any Subsidiary is required
        to withhold or to collect for payment have been duly withheld and collected
        and
        paid to the proper governmental entity or third party when due. There are
        no tax
        liens or claims pending or, to the Company’s Knowledge, threatened against the
        Company or any Subsidiary or any of their respective assets or property.
        

      

      4.12 Title
        to Properties.
        Except
        as disclosed in the SEC Filings, the Company and each Subsidiary has good
        and
        marketable title to all real properties and all other properties and assets
        owned by it, in each case free from liens, encumbrances and defects that
        would
        materially affect the value thereof or materially interfere with the use
        made or
        currently planned to be made thereof by them; and except as disclosed in
        the SEC
        Filings, the Company and each Subsidiary holds any leased real or personal
        property under valid and enforceable leases with no exceptions that would
        materially interfere with the use made or currently planned to be made thereof
        by them.

      

      4.13 Certificates,
        Authorities and Permits.
        The
        Company and each Subsidiary possess adequate certificates, authorities or
        permits issued by appropriate governmental agencies or bodies necessary to
        conduct the business now operated by it, and neither the Company nor any
        Subsidiary has received any notice of proceedings relating to the revocation
        or
        modification of any such certificate, authority or permit that, if determined
        adversely to the Company or such Subsidiary, could reasonably be expected
        to
        have a Material Adverse Effect, individually or in the aggregate.

      

      4.14 No
        Labor Disputes.
        No
        material labor dispute with the employees of the Company or any Subsidiary
        exists or, to the Company’s Knowledge, is imminent.

      

      
        
           

        

        
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      4.15 Intellectual
        Property.

      

      (a) All
        Intellectual Property of the Company and its Subsidiaries is currently in
        compliance with all legal requirements (including timely filings, proofs
        and
        payments of fees) and is valid and enforceable. No Intellectual Property
        of the
        Company or its Subsidiaries which is necessary for the conduct of Company’s and
        each of its Subsidiaries’ respective businesses as currently conducted or as
        currently proposed to be conducted has been or is now involved in any
        cancellation, dispute or litigation, and, to the Company’s Knowledge, no such
        action is threatened. No patent of the Company or its Subsidiaries has been
        or
        is now involved in any interference, reissue, re-examination or opposition
        proceeding.

      

      (b) All
        of
        the licenses and sublicenses and consent, royalty or other agreements concerning
        Intellectual Property which are necessary for the conduct of the Company’s and
        each of its Subsidiaries’ respective businesses as currently conducted or as
        currently proposed to be conducted to which the Company or any Subsidiary
        is a
        party or by which any of their assets are bound (other than  generally
        commercially available, non-custom, off-the-shelf software application programs
        having a retail acquisition price of less than $10,000 per license)
        (collectively, “License Agreements”) are valid and binding obligations of the
        Company or its Subsidiaries that are parties thereto and, to the Company’s
        Knowledge, the other parties thereto, enforceable in accordance with their
        terms, except to the extent that enforcement thereof may be limited by
        bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
        or
        other similar laws affecting the enforcement of creditors’ rights generally, and
        there exists no event or condition which will result in a material violation
        or
        breach of or constitute (with or without due notice or lapse of time or both)
        a
        default by the Company or any of its Subsidiaries under any such License
        Agreement.

      

      (c) The
        Company and its Subsidiaries own or have the valid right to use all of the
        Intellectual Property that is necessary for the conduct of the Company’s and
        each of its Subsidiaries’ respective businesses as currently conducted or as
        currently proposed to be conducted and for the ownership, maintenance and
        operation of the Company’s and its Subsidiaries’ properties and assets, free and
        clear of all liens, encumbrances, adverse claims or obligations to license
        all
        such owned Intellectual Property and Confidential Information, other than
        licenses entered into in the ordinary course of the Company’s and its
        Subsidiaries’ businesses. The Company and its Subsidiaries have a valid and
        enforceable right to use all third party Intellectual Property and Confidential
        Information used or held for use in the respective businesses of the Company
        and
        its Subsidiaries.

      

      (d) The
        conduct of the Company’s and its Subsidiaries’ businesses as currently conducted
        does not infringe or otherwise impair or conflict with (collectively,
“Infringe”) any Intellectual Property rights of any third party or any
        confidentiality obligation owed to a third party, and, to the Company’s
        Knowledge, the Intellectual Property and Confidential Information of the
        Company
        and its Subsidiaries which are necessary for the conduct of Company’s and each
        of its Subsidiaries’ respective businesses as currently conducted or as
        currently proposed to be conducted are not being Infringed by any third party.
        There is no litigation or order pending or outstanding or, to the Company’s
        Knowledge, threatened or imminent, that seeks to limit or challenge or that
        concerns the ownership, use, validity or enforceability of any Intellectual
        Property or Confidential Information of the Company and its Subsidiaries
        and the
        Company’s and its Subsidiaries’ use of any Intellectual Property or Confidential
        Information owned by a third party, and, to the Company’s Knowledge, there is no
        valid basis for the same.

      

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      (e) The
        consummation of the transactions contemplated hereby and by the other
        Transaction Documents will not result in the alteration, loss, impairment
        of or
        restriction on the Company’s or any of its Subsidiaries’ ownership or right to
        use any of the Intellectual Property or Confidential Information which is
        necessary for the conduct of Company’s and each of its Subsidiaries’ respective
        businesses as currently conducted or as currently proposed to be
        conducted.

      

      (f) The
        Company and its Subsidiaries have taken reasonable steps to protect the
        Company’s and its Subsidiaries’ rights in their Intellectual Property and
        Confidential Information. Each employee, consultant and contractor who has
        had
        access to Confidential Information which is necessary for the conduct of
        Company’s and each of its Subsidiaries’ respective businesses as currently
        conducted or as currently proposed to be conducted has executed an agreement
        to
        maintain the confidentiality of such Confidential Information and has executed
        appropriate agreements that are substantially consistent with the Company’s
        standard forms thereof. Except under confidentiality obligations, there has
        been
        no material disclosure of any of the Company’s or its Subsidiaries’ Confidential
        Information to any third party.

      

      4.16 Environmental
        Matters.
        Neither
        the Company nor any Subsidiary is in violation of any statute, rule, regulation,
        decision or order of any governmental agency or body or any court, domestic
        or
        foreign, relating to the use, disposal or release of hazardous or toxic
        substances or relating to the protection or restoration of the environment
        or
        human exposure to hazardous or toxic substances (collectively, “Environmental
        Laws”), owns or operates any real property contaminated with any substance that
        is subject to any Environmental Laws, is liable for any off-site disposal
        or
        contamination pursuant to any Environmental Laws, and is subject to any claim
        relating to any Environmental Laws, which violation, contamination, liability
        or
        claim has had or could reasonably be expected to have a Material Adverse
        Effect,
        individually or in the aggregate; and there is no pending or, to the Company’s
        Knowledge, threatened investigation that might lead to such a
        claim.

      

      4.17 Litigation.
        Except
        as described on Schedule
        4.17,
        there
        are no pending actions, suits or proceedings against or affecting the Company,
        its Subsidiaries or any of its or their properties; and to the Company’s
        Knowledge, no such actions, suits or proceedings are threatened or
        contemplated.

      

      4.18 Financial
        Statements.
        The
        financial statements included in each SEC Filing present fairly, in all material
        respects, the consolidated financial position of the Company as of the dates
        shown and its consolidated results of operations and cash flows for the periods
        shown, and such financial statements have been prepared in conformity with
        United States generally accepted accounting principles applied on a consistent
        basis (“GAAP”) (except as may be disclosed therein or in the notes thereto, and,
        in the case of quarterly financial statements, as permitted by Form 10-QSB
        under
        the 1934 Act). Except as set forth in the financial statements of the Company
        included in the SEC Filings filed prior to the date hereof or as described
        on
Schedule
        4.18,
        neither
        the Company nor any of its Subsidiaries has incurred any liabilities, contingent
        or otherwise, except those incurred in the ordinary course of business,
        consistent (as to amount and nature) with past practices since the date of
        such
        financial statements, none of which, individually or in the aggregate, have
        had
        or could reasonably be expected to have a Material Adverse Effect.

      

      
        
           

        

        
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      4.19 Insurance
        Coverage.
        Except
        as described on Schedule
        4.19,
        the
        Company and each Subsidiary maintains in full force and effect insurance
        coverage that is customary for comparably situated companies for the business
        being conducted and properties owned or leased by the Company and each
        Subsidiary, and the Company reasonably believes such insurance coverage to
        be
        adequate against all liabilities, claims and risks against which it is customary
        for comparably situated companies to insure.

      

      4.20 Brokers
        and Finders.
        No
        Person will have, as a result of the transactions contemplated by the
        Transaction Documents, any valid right, interest or claim against or upon
        the
        Company, any Subsidiary or an Investor for any commission, fee or other
        compensation pursuant to any agreement, arrangement or understanding entered
        into by or on behalf of the Company, other than as described in Schedule
        4.20.

      

      4.21 No
        Directed Selling Efforts or General Solicitation.
        Neither
        the Company nor any Person acting on its behalf has conducted any general
        solicitation or general advertising (as those terms are used in Regulation
        D) in
        connection with the offer or sale of any of the Securities.

      

      4.22 No
        Integrated Offering.
        Neither
        the Company nor any of its Affiliates, nor any Person acting on its or their
        behalf has, directly or indirectly, made any offers or sales of any Company
        security or solicited any offers to buy any security, under circumstances
        that
        would adversely affect reliance by the Company on Section 4(2) for the exemption
        from registration for the transactions contemplated hereby or would require
        registration of the Securities under the 1933 Act.

      

      4.23 Private
        Placement.
        The
        offer and sale of the Securities to the Investor as contemplated hereby is
        exempt from the registration requirements of the 1933 Act.

      

      4.24 Questionable
        Payments.
        Neither
        the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of
        their respective current or former stockholders, directors, officers, employees,
        agents or other Persons acting on behalf of the Company or any Subsidiary,
        has
        on behalf of the Company or any Subsidiary or in connection with their
        respective businesses: (a) used any corporate funds for unlawful contributions,
        gifts, entertainment or other unlawful expenses relating to political activity;
        (b) made any direct or indirect unlawful payments to any governmental officials
        or employees from corporate funds; (c) established or maintained any unlawful
        or
        unrecorded fund of corporate monies or other assets; (d) made any false or
        fictitious entries on the books and records of the Company or any Subsidiary;
        or
        (e) made any unlawful bribe, rebate, payoff, influence payment, kickback
        or
        other unlawful payment of any nature.

      

      
        
           

        

        
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      4.25 Transactions
        with Affiliates.
        Except
        as disclosed in the SEC Filings or as disclosed on Schedule
        4.25,
        none of
        the officers or directors of the Company and, to the Company’s Knowledge, none
        of the employees of the Company is presently a party to any transaction with
        the
        Company or any Subsidiary (other than as holders of stock options and/or
        warrants, and for services as employees, officers and directors), including
        any
        contract, agreement or other arrangement providing for the furnishing of
        services to or by, providing for rental of real or personal property to or
        from,
        or otherwise requiring payments to or from any officer, director or such
        employee or, to the Company’s Knowledge, any entity in which any officer,
        director, or any such employee has a substantial interest or is an officer,
        director, trustee or partner.

      

      4.26 Internal
        Controls.
        The
        Company is
        in
        material compliance with the provisions of the Sarbanes-Oxley Act of 2002
        currently applicable to the Company. The Company and
        the
        Subsidiaries maintain a system of internal accounting controls sufficient
        to
        provide reasonable assurance that (i) transactions are executed in accordance
        with management's general or specific authorizations, (ii) transactions are
        recorded as necessary to permit preparation of financial statements in
        conformity with generally accepted accounting principles and to maintain
        asset
        accountability, (iii) access to assets is permitted only in accordance with
        management's general or specific authorization, and (iv) the recorded
        accountability for assets is compared with the existing assets at reasonable
        intervals and appropriate action is taken with respect to any differences.
        The
        Company has established disclosure controls and procedures (as defined in
        1934
        Act Rules 13a-14 and 15d-14) for the Company and designed such disclosure
        controls and procedures to ensure that material information relating to the
        Company, including the Subsidiaries, is made known to the certifying officers
        by
        others within those entities, particularly during the period in which the
        Company’s most recently filed period report under the 1934 Act, as the case may
        be, is being prepared. The Company's certifying officers have evaluated the
        effectiveness of the Company's controls and procedures as of the end of the
        period covered by the most recently filed periodic report under the 1934
        Act
        (such date, the "Evaluation Date"). The Company presented in its most recently
        filed periodic report under the 1934 Act the conclusions of the certifying
        officers about the effectiveness of the disclosure controls and procedures
        based
        on their evaluations as of the Evaluation Date. Since the Evaluation Date,
        there
        have been no significant changes in the Company's internal controls (as such
        term is defined in Item 307(b) of Regulation S-K) or, to the Company's
        Knowledge, in other factors that could significantly affect the Company's
        internal controls. The Company maintains and will continue to maintain a
        standard system of accounting established and administered in accordance
        with
        GAAP and the applicable requirements of the 1934 Act.

      

      4.27 Disclosures.
        Neither
        the Company nor any Person acting on its behalf has provided the Investor
        or
        their agents or counsel with any information that constitutes or might
        constitute material, non-public information. The written materials delivered
        to
        the Investor in connection with the transactions contemplated by the Transaction
        Documents do not contain any untrue statement of a material fact or omit
        to
        state a material fact necessary in order to make the statements contained
        therein, in light of the circumstances under which they were made, not
        misleading.

      

      
        
           

        

        
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      5. Representations
        and Warranties of the Investor.
        The
        Investor hereby represents and warrants to the Company that:

      

      5.1 Organization
        and Existence.
        Such
        Investor is a validly existing corporation, limited partnership or limited
        liability company and has all requisite corporate, partnership or limited
        liability company power and authority to invest in the Securities pursuant
        to
        this Agreement.

      

      5.2 Authorization.
        The
        execution, delivery and performance by such Investor of the Transaction
        Documents to which such Investor is a party have been duly authorized and
        will
        each constitute the valid and legally binding obligation of such Investor,
        enforceable against such Investor in accordance with their respective terms,
        subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
        moratorium and similar laws of general applicability, relating to or affecting
        creditors’ rights generally.

      

      5.3 Purchase
        Entirely for Own Account.
        The
        Securities to be received by such Investor hereunder will be acquired for
        such
        Investor’s own account, not as nominee or agent, and not with a view to the
        resale or distribution of any part thereof in violation of the 1933 Act,
        and
        such Investor has no present intention of selling, granting any participation
        in, or otherwise distributing the same in violation of the 1933 Act
        without
        prejudice, however, to such Investor’s right at all times to sell or otherwise
        dispose of all or any part of such Securities in compliance with applicable
        federal and state securities laws.
        Nothing
        contained herein shall be deemed a representation or warranty by such Investor
        to hold the Securities for any period of time. Such
        Investor
        is not a broker-dealer registered with the SEC under the 1934 Act or an entity
        engaged in a business that would require it to be so registered.

      

      5.4 Investment
        Experience.
        Such
        Investor acknowledges that it can bear the economic risk and complete loss
        of
        its investment in the Securities and has such knowledge and experience in
        financial or business matters that it is capable of evaluating the merits
        and
        risks of the investment contemplated hereby.

      

      5.5 Disclosure
        of Information.
        Such
        Investor has had an opportunity to receive all information related to the
        Company requested by it and to ask questions of and receive answers from
        the
        Company regarding the Company, its business and the terms and conditions
        of the
        offering of the Securities. Such Investor acknowledges receipt of copies
        of the
        SEC Filings. Neither such inquiries nor any other due diligence investigation
        conducted by such Investor shall modify, amend or affect such Investor’s right
        to rely on the Company’s representations and warranties contained in this
        Agreement.

      

      5.6 Restricted
        Securities.
        Such
        Investor understands that the Securities are characterized as “restricted
        securities” under the U.S. federal securities laws inasmuch as they are being
        acquired from the Company in a transaction not involving a public offering
        and
        that under such laws and applicable regulations such securities may be resold
        without registration under the 1933 Act only in certain limited
        circumstances.

      

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      5.7 Legends.
        It is
        understood that, except as provided below, certificates evidencing the
        Securities may bear the following or any similar legend:

      

      (a) “The
        securities represented hereby may not be transferred unless (i) such securities
        have been registered for sale pursuant to the Securities Act of 1933, as
        amended, (ii) such securities may be sold pursuant to Rule 144(k), or (iii)
        the
        Company has received an opinion of counsel reasonably satisfactory to it
        that
        such transfer may lawfully be made without registration under the Securities
        Act
        of 1933 or qualification under applicable state securities laws.”

      

      (b) If
        required by the authorities of any state in connection with the issuance
        of sale
        of the Securities, the legend required by such state authority.

      

      5.8 Accredited
        Investor.
        Such
        Investor is an accredited investor as defined in Rule 501(a) of Regulation
        D, as
        amended, under the 1933 Act.

      

      5.9 No
        General Solicitation.
        Such
        Investor did not learn of the investment in the Securities as a result of
        any
        public advertising or general solicitation.

      

      5.10 Brokers
        and Finders.
        No
        Person will have, as a result of the transactions contemplated by the
        Transaction Documents, any valid right, interest or claim against or upon
        the
        Company, any Subsidiary or an Investor for any commission, fee or other
        compensation pursuant to any agreement, arrangement or understanding entered
        into by or on behalf of such Investor.

      

      5.11 Prohibited
        Transactions.
        During
        the last thirty (30) days prior to the date hereof, neither such Investor
        nor
        any Affiliate of such Investor which (x) had knowledge of the transactions
        contemplated hereby, (y) has or shares discretion relating to such Investor’s
        investments or trading or information concerning such Investor’s investments,
        including in respect of the Securities, or (z) is subject to such Investor’s
        review or input concerning such Affiliate’s investments or trading
        (collectively, “Trading Affiliates”) has, directly or indirectly, effected or
        agreed to effect any short sale, whether or not against the box, established
        any
“put equivalent position” (as defined in Rule 16a-1(h) under the 1934 Act) with
        respect to the Common Stock, granted any other right (including, without
        limitation, any put or call option) with respect to the Common Stock or with
        respect to any security that includes, relates to or derived any significant
        part of its value from the Common Stock or otherwise sought to hedge its
        position in the Securities (each, a “Prohibited Transaction”). Prior to the
        earliest to occur of (i) the termination of this Agreement, (ii) the Effective
        Date or (iii) the Effectiveness Deadline, such Investor shall not, and shall
        cause its Trading Affiliates not to, engage, directly or indirectly, in a
        Prohibited Transaction. Such Investor acknowledges that the representations,
        warranties and covenants contained in this Section 5.11 are being made for
        the
        benefit of the Investor as well as the Company and that each of the other
        Investor shall have an independent right to assert any claims against such
        Investor arising out of any breach or violation of the provisions of this
        Section 5.11.

      

      
        
           

        

        
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      6.
        Conditions
        to Closing.

      

      6.1 Conditions
        to the Investor’s Obligations.
        The
        obligation of the Investor to purchase the Debentures and the Warrants at
        the
        Closing is subject to the fulfillment to such Investor’s satisfaction, on or
        prior to the Closing Date, of the following conditions, any of which may
        be
        waived by the Investor:

      

      (a) The
        representations and warranties made by the Company in Section 4 hereof qualified
        as to materiality shall be true and correct at all times prior to and on
        the
        Closing Date, except to the extent any such representation or warranty expressly
        speaks as of an earlier date, in which case such representation or warranty
        shall be true and correct as of such earlier date, and, the representations
        and
        warranties made by the Company in Section 4 hereof not qualified as to
        materiality shall be true and correct in all material respects at all times
        prior to and on the Closing Date, except to the extent any such representation
        or warranty expressly speaks as of an earlier date, in which case such
        representation or warranty shall be true and correct in all material respects
        as
        of such earlier date. The Company shall have performed in all material respects
        all obligations and conditions herein required to be performed or observed
        by it
        on or prior to the Closing Date.

      

      (b) The
        Company shall have obtained any and all consents, permits, approvals,
        registrations and waivers necessary or appropriate for consummation of the
        purchase and sale of the Securities, and the consummation of the other
        transactions contemplated by the Transaction Documents, all of which shall
        be in
        full force and effect.

      

      (c) The
        Company shall have executed and delivered the Registration Rights
        Agreement.

      

      (d) No
        judgment, writ, order, injunction, award or decree of or by any court, or
        judge,
        justice or magistrate, including any bankruptcy court or judge, or any order
        of
        or by any governmental authority, shall have been issued, and no action or
        proceeding shall have been instituted by any governmental authority, enjoining
        or preventing the consummation of the transactions contemplated hereby or
        in the
        other Transaction Documents.

      

      (e) The
        Company shall have delivered a Certificate, executed on behalf of the Company
        by
        its Chief Executive Officer or its Chief Financial Officer, dated as of the
        Closing Date, certifying to the fulfillment of the conditions specified in
        this
        Section 6.1.

      

      (f) The
        Company shall have delivered a Certificate, executed on behalf of the Company
        by
        its Secretary, dated as of the Closing Date, certifying the resolutions adopted
        by the Board of Directors of the Company approving the transactions contemplated
        by this Agreement and the other Transaction Documents and the issuance of
        the
        Securities, certifying the current versions of the Certificate of Incorporation
        and Bylaws of the Company and certifying as to the signatures and authority
        of
        persons signing the Transaction Documents and related documents on behalf
        of the
        Company.

      

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

      (g) No
        stop
        order or suspension of trading shall have been imposed by Nasdaq, the SEC
        or any
        other governmental or regulatory body with respect to public trading in the
        Common Stock.

      

      6.2 Conditions
        to Obligations of the Company.
        The
        Company's obligation to sell and issue the Shares and the Warrants at the
        Closing is subject to the fulfillment to the satisfaction of the Company
        on or
        prior to the Closing Date of the following conditions, any of which may be
        waived by the Company:

      

      (a) The
        representations and warranties made by the Investor in Section 5 hereof,
        other
        than the representations and warranties contained in Sections 5.3, 5.4, 5.5,
        5.6, 5.7, 5.8 and 5.9 (the “Investment Representations”), shall be true and
        correct in all material respects when made, and shall be true and correct
        in all
        material respects on the Closing Date with the same force and effect as if
        they
        had been made on and as of said date. The Investment Representations shall
        be
        true and correct in all respects when made, and shall be true and correct
        in all
        respects on the Closing Date with the same force and effect as if they had
        been
        made on and as of said date. The Investor shall have performed in all material
        respects all obligations and conditions herein required to be performed or
        observed by them on or prior to the Closing Date.

      

      (b) The
        Investor shall have executed and delivered the Registration Rights
        Agreement.

      

      (c) The
        Investor shall have delivered the Purchase Price to the Company.

      

      6.3 Termination
        of Obligations to Effect Closing; Effects.

      

      (a) The
        obligations of the Company, on the one hand, and the Investor, on the other
        hand, to effect the Closing shall terminate as follows:

      

      (i) Upon
        the
        mutual written consent of the Company and the Investor;

      

      (ii) By
        the
        Company if any of the conditions set forth in Section 6.2 shall have become
        incapable of fulfillment, and shall not have been waived by the
        Company;

      

      (iii) By
        an
        Investor (with respect to itself only) if any of the conditions set forth
        in
        Section 6.1 shall have become incapable of fulfillment, and shall not have
        been
        waived by the Investor; or

      

      (iv) By
        either
        the Company or the Investor if the Closing has not occurred on or prior to
        June
        20, 2005;

      

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

      provided,
        however, that, except in the case of clause (i) above, the party seeking
        to
        terminate its obligation to effect the Closing shall not then be in breach
        of
        any of its representations, warranties, covenants or agreements contained
        in
        this Agreement or the other Transaction Documents if such breach has resulted
        in
        the circumstances giving rise to such party’s seeking to terminate its
        obligation to effect the Closing.

      

      

      7. Covenants
        and Agreements of the Company.

      

      7.1 Reservation
        of Common Stock.
        The
        Company shall at all times reserve and keep available out of its authorized
        but
        unissued shares of Common Stock, solely for the purpose of providing for
        the
        conversion of the Debenture or the exercise of the Warrants, such number
        of
        shares of Common Stock as shall from time to time equal the number of shares
        sufficient to permit the conversion of the Debentures and the exercise of
        the
        Warrants issued pursuant to this Agreement in accordance with their respective
        terms.

      

      7.2 Reports.
        The
        Company will furnish to the Investor and/or their assignees such information
        relating to the Company and its Subsidiaries as from time to time may reasonably
        be requested by the Investor and/or their assignees; provided, however, that
        the
        Company shall not disclose material nonpublic information to the Investor,
        or to
        advisors to or representatives of the Investor, unless prior to disclosure
        of
        such information the Company identifies such information as being material
        nonpublic information and provides the Investor, such advisors and
        representatives with the opportunity to accept or refuse to accept such material
        nonpublic information for review and the Investor wishing to obtain such
        information enters into an appropriate confidentiality agreement with the
        Company with respect thereto.

      

      7.3 No
        Conflicting Agreements.
        The
        Company will not take any action, enter into any agreement or make any
        commitment that would conflict or interfere in any material respect with
        the
        Company’s obligations to the Investor under the Transaction
        Documents.

      

      7.4 Compliance
        with Laws.
        The
        Company will comply in all material respects with all applicable laws, rules,
        regulations, orders and decrees of all governmental authorities.

      

      7.5 Termination
        of Covenants.
        The
        provisions of Sections 7.2 through 7.4 shall terminate and be of no further
        force and effect on the date on which the Company’s obligations under the
        Registration Rights Agreement to register or maintain the effectiveness of
        any
        registration covering the Registrable Securities (as such term is defined
        in the
        Registration Rights Agreement) shall terminate.

      

      7.6 Removal
        of Legends.
        Upon
        the earlier of (i) registration for resale pursuant to the Registration Rights
        Agreement and receipt by the Company of the Investor’s written confirmation that
        such Securities will not be disposed of except in compliance with the prospectus
        delivery requirements of the 1933 Act or (ii) Rule 144(k) becoming available
        the
        Company shall, upon an Investor’s written request, promptly cause certificates
        evidencing the Investor’s Securities to be replaced with certificates which do
        not bear such restrictive legends, and Warrant Shares subsequently issued
        upon
        due exercise of the Warrants shall not bear such restrictive legends provided
        the provisions of either clause (i) or clause (ii) above, as applicable,
        are
        satisfied with respect to such Warrant Shares. 

       

      
        
           

        

        
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      8. Survival
        and Indemnification.

      

      8.1 Survival.
        The
        representations, warranties, covenants and agreements contained in this
        Agreement shall survive the Closing of the transactions contemplated by this
        Agreement.

      

      8.2 Indemnification.
        The
        Company agrees to indemnify and hold harmless each Investor and its Affiliates
        and their respective directors, officers, employees and agents from and against
        any and all losses, claims, damages, liabilities and expenses (including
        without
        limitation reasonable attorney fees and disbursements and other expenses
        incurred in connection with investigating, preparing or defending any action,
        claim or proceeding, pending or threatened and the costs of enforcement thereof)
        (collectively, “Losses”) to which such Person may become subject as a result of
        any breach of representation, warranty, covenant or agreement made by or
        to be
        performed on the part of the Company under the Transaction Documents, and
        will
        reimburse any such Person for all such amounts as they are incurred by such
        Person.

      

      8.3 Conduct
        of Indemnification Proceedings.
        Promptly
        after receipt by any Person (the “Indemnified
        Person”) of notice of any demand, claim or circumstances which would or might
        give rise to a claim or the commencement of any action, proceeding or
        investigation in respect of which indemnity may be sought pursuant to Section
        8.2, such Indemnified Person shall promptly notify the Company in writing
        and
        the Company shall assume the defense thereof, including the employment of
        counsel reasonably satisfactory to such Indemnified Person, and shall assume
        the
        payment of all fees and expenses; provided,
        however, that
        the
        failure of any Indemnified Person so to notify the Company shall not relieve
        the
        Company of its obligations hereunder except to the extent that the Company
        is
        materially prejudiced by such failure to notify. In any such proceeding,
        any
        Indemnified Person shall have the right to retain its own counsel, but the
        fees
        and expenses of such counsel shall be at the expense of such Indemnified
        Person
        unless: (i) the Company and the Indemnified Person shall have mutually agreed
        to
        the retention of such counsel; or (ii) in the reasonable judgment of counsel
        to
        such Indemnified Person representation of both parties by the same counsel
        would
        be inappropriate due to actual or potential differing interests between them.
        The Company shall not be liable for any settlement of any proceeding effected
        without its written consent, which consent shall not be unreasonably withheld,
        but if settled with such consent, or if there be a final judgment for the
        plaintiff, the Company shall indemnify and hold harmless such Indemnified
        Person
        from and against any loss or liability (to the extent stated above) by reason
        of
        such settlement or judgment. Without the prior written consent of the
        Indemnified Person, which consent shall not be unreasonably withheld, the
        Company shall not effect any settlement of any pending or threatened proceeding
        in respect of which any Indemnified Person is or could have been a party
        and
        indemnity could have been sought hereunder by such Indemnified Party, unless
        such settlement includes an unconditional release of such Indemnified Person
        from all liability arising out of such proceeding.

      

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

      9. Miscellaneous.

      

      9.1 Successors
        and Assigns.
        This
        Agreement may not be assigned by a party hereto without the prior written
        consent of the Company or the Investor, as applicable, provided, however,
        that
        an Investor may assign its rights and delegate its duties hereunder in whole
        or
        in part to an Affiliate or to a third party acquiring some or all of its
        Securities in a private transaction without the prior written consent of
        the
        Company, after notice duly given by such Investor to the Company. The provisions
        of this Agreement shall inure to the benefit of and be binding upon the
        respective permitted successors and assigns of the parties. Nothing in this
        Agreement, express or implied, is intended to confer upon any party other
        than
        the parties hereto or their respective successors and assigns any rights,
        remedies, obligations, or liabilities under or by reason of this Agreement,
        except as expressly provided in this Agreement.

      

      9.2 Counterparts;
        Faxes.
        This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. This Agreement may also be executed via facsimile, which shall
        be
        deemed an original.

      

      9.3 Titles
        and Subtitles.
        The
        titles and subtitles used in this Agreement are used for convenience only
        and
        are not to be considered in construing or interpreting this
        Agreement.

      

      9.4 Notices.
        Unless
        otherwise provided, any notice required or permitted under this Agreement
        shall
        be given in writing and shall be deemed effectively given as hereinafter
        described (i) if given by personal delivery, then such notice shall be deemed
        given upon such delivery, (ii) if given by telex or telecopier, then such
        notice
        shall be deemed given upon receipt of confirmation of complete transmittal,
        (iii) if given by mail, then such notice shall be deemed given upon the earlier
        of (A) receipt of such notice by the recipient or (B) three days after such
        notice is deposited in first class mail, postage prepaid, and (iv) if given
        by
        an internationally recognized overnight air courier, then such notice shall
        be
        deemed given one business day after delivery to such carrier. All notices
        shall
        be addressed to the party to be notified at the address as follows, or at
        such
        other address as such party may designate by ten days’ advance written notice to
        the other party:

      

      If
        to the
        Company:

      

      Mr.
        Mark
        Gustafson

      Triangle
        Petroleum Corporation

      Sun
        Life
        Plaza

      Suite
        1600, 144-4th
        Avenue
        SW

      Calgary,
        Alberta R2P 3N4 

      Fax: (403)
        269-3537

      

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

      With
        a
        copy to:

      

      Sichenzia
        Ross Friedman Ference LLP

      1065
        Avenue of the Americas

      New
        York,
        New York 10010 

      Attention:
        Thomas A. Rose, Esq.

      Fax:
        (212) 930-9725

      

      If
        to the
        Investor:

      

      Rowlings
        Financial Inc.

      c/o
        Interis AG

      Löwenstrasse
        20

      CH-8001
        Zürich

      Fax:
        011-41-1-218-5149

      

      9.5 Expenses.
        The
        parties hereto shall pay their own costs and expenses in connection herewith.
        In
        the event that legal proceedings are commenced by any party to this Agreement
        against another party to this Agreement in connection with this Agreement
        or the
        other Transaction Documents, the party or parties which do not prevail in
        such
        proceedings shall severally, but not jointly, pay their pro rata share of
        the
        reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses
        incurred by the prevailing party in such proceedings.

      

      9.6 Amendments
        and Waivers.
        Any
        term of this Agreement may be amended and the observance of any term of this
        Agreement may be waived (either generally or in a particular instance and
        either
        retroactively or prospectively), only with the written consent of the Company
        and the Investor. Any amendment or waiver effected in accordance with this
        paragraph shall be binding upon each holder of any Securities purchased under
        this Agreement at the time outstanding, each future holder of all such
        Securities, and the Company.

      

      9.7 Publicity.
        Except
        as set forth below, no public release or announcement concerning the
        transactions contemplated hereby shall be issued by the Company or the Investor
        without the prior consent of the Company (in the case of a release or
        announcement by the Investor) or the Investor (in the case of a release or
        announcement by the Company) (which consents shall not be unreasonably
        withheld), except as such release or announcement may be required by law
        or the
        applicable rules or regulations of any securities exchange or securities
        market,
        in which case the Company or the Investor, as the case may be, shall allow
        the
        Investor or the Company, as applicable, to the extent reasonably practicable
        in
        the circumstances, reasonable time to comment on such release or announcement
        in
        advance of such issuance. By 8:30 a.m. (New York City time) on the trading
        day
        immediately following the Closing Date, the Company shall issue a press release
        disclosing the consummation of the transactions contemplated by this Agreement.
        No later than the third trading day following the Closing Date, the Company
        will
        file a Current Report on Form 8-K attaching the press release described in
        the
        foregoing sentence as well as copies of the Transaction Documents. In addition,
        the Company will make such other filings and notices in the manner and time
        required by the SEC. Notwithstanding the foregoing, the Company shall not
        publicly disclose the name of any Investor, or include the name of any Investor
        in any filing with the SEC (other than the Registration Statement and any
        exhibits to filings made in respect of this transaction in accordance with
        periodic filing requirements under the 1934 Act) or any regulatory agency
        or
        Nasdaq, without the prior written consent of such Investor, except to the
        extent
        such disclosure is required by law or trading market regulations, in which
        case
        the Company shall provide the Investor with prior notice of such
        disclosure.

      

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

      9.8 Severability.
        Any
        provision of this Agreement that is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof but shall be interpreted as if it were written so as to
        be
        enforceable to the maximum extent permitted by applicable law, and any such
        prohibition or unenforceability in any jurisdiction shall not invalidate
        or
        render unenforceable such provision in any other jurisdiction. To the extent
        permitted by applicable law, the parties hereby waive any provision of law
        which
        renders any provision hereof prohibited or unenforceable in any
        respect.

      

      9.9 Entire
        Agreement.
        This
        Agreement, including the Exhibits and the Disclosure Schedules, and the other
        Transaction Documents constitute the entire agreement among the parties hereof
        with respect to the subject matter hereof and thereof and supersede all prior
        agreements and understandings, both oral and written, between the parties
        with
        respect to the subject matter hereof and thereof.

      

      9.10 Further
        Assurances.
        The
        parties shall execute and deliver all such further instruments and documents
        and
        take all such other actions as may reasonably be required to carry out the
        transactions contemplated hereby and to evidence the fulfillment of the
        agreements herein contained.

      

      9.11 Governing
        Law; Consent to Jurisdiction; Waiver of Jury Trial.
        This
        Agreement shall be governed by, and construed in accordance with, the internal
        laws of the State of Nevada without regard to the choice of law principles
        thereof. Each of the parties hereto irrevocably submits to the exclusive
        jurisdiction of the courts of the State of Nevada and the United States District
        Courts for the purpose of any suit, action, proceeding or judgment relating
        to
        or arising out of this Agreement and the transactions contemplated hereby.
        Service of process in connection with any such suit, action or proceeding
        may be
        served on each party hereto anywhere in the world by the same methods as
        are
        specified for the giving of notices under this Agreement. Each of the parties
        hereto irrevocably consents to the jurisdiction of any such court in any
        such
        suit, action or proceeding and to the laying of venue in such court. Each
        party
        hereto irrevocably waives any objection to the laying of venue of any such
        suit,
        action or proceeding brought in such courts and irrevocably waives any claim
        that any such suit, action or proceeding brought in any such court has been
        brought in an inconvenient forum. EACH
        OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
        LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS
        BEEN
        CONSULTED SPECIFICALLY AS TO THIS WAIVER.

      [signature
        page follows]

      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement or caused their
        duly
        authorized officers to execute this Agreement as of the date first above
        written.

      

      The
        Company:    TRIANGLE
        PETROLEUM CORPORATION

      

      

      

      By:/s/
        MARK GUSTAFSON

      Name:
        Mark Gustafson

      Title:
        President

      

      

      

      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

      The
        Investor:    ROWLINGS
        FINANCIAL, INC.

      

      

      

      By:
        /s/
        SILVIO ROSSETTI

      Name:
        Dr.
        Silvio Rossetti

      Title:
        Attorney

      

      Aggregate
        Purchase Price: Up to $6,000,000

      

      Number
        of
        Warrants: Up to 6,000,000

      

      
        
           

        

        
          -23-REGISTRATION
        RIGHTS AGREEMENT

      

      This
        Registration Rights Agreement (the “Agreement”) is made and entered into as of
        this 14th day of June, 2005, by and among Peloton
        Resources, Inc.Triangle
        Petroleum Corporation,
        a
        Nevada corporation (the “Company”), and the “Investor” named in that certain
        Purchase Agreement by and among the Company and the Investors (the “Purchase
        Agreement”). 

       

      The
        parties hereby agree as follows:

       

      1. Certain
        Definitions.

       

      As
        used
        in this Agreement, the following terms shall have the following
        meanings:

       

      “Affiliate”
        means,
        with respect to any person, any other person which directly or indirectly
        controls, is controlled by, or is under common control with, such
        person.

       

      “Business
        Day”
        means a
        day, other than a Saturday or Sunday, on which banks in New York City are
        open
        for the general transaction of business.

       

      “Common
        Stock”
        shall
        mean the Company’s common stock, par value $0.00001 per share, and any
        securities into which such shares may hereinafter be reclassified.

       

      “Investor”
        shall
        mean the Investor identified in the Purchase Agreement and any Affiliate
        or
        permitted transferee of any Investor who is a subsequent holder of any
        Debentures, Warrants or Registrable Securities.

       

      “Prospectus”
        shall
        mean the prospectus included in any Registration Statement, as amended or
        supplemented by any prospectus supplement, with respect to the terms of the
        offering of any portion of the Registrable Securities covered by such
        Registration Statement and by all other amendments and supplements to the
        prospectus, including post-effective amendments and all material incorporated
        by
        reference in such prospectus.

       

      “Register,”“registered”
        and
“registration”
        refer
        to a registration made by preparing and filing a Registration Statement or
        similar document in compliance with the 1933 Act (as defined below), and
        the
        declaration or ordering of effectiveness of such Registration Statement or
        document.

       

      “Registrable
        Securities”
        shall
        mean the Shares and the shares of Common Stock issuable (i) upon the conversion
        of the Debentures, if any (ii) upon the exercise of the Warrants, if any,
        and
        (iii) any other securities issued or issuable with respect to or in exchange
        for
        Registrable Securities; provided, that, a security shall cease to be a
        Registrable Security upon (A) sale pursuant to a Registration Statement or
        Rule
        144 under the 1933 Act, or (B) such security becoming eligible for sale by
        the
        Investors pursuant to Rule 144(k).

       

      “Registration
        Statement”
        shall
        mean any registration statement of the Company filed under the 1933 Act that
        covers the resale of any of the Registrable Securities pursuant to the
        provisions of this Agreement, amendments and supplements to such Registration
        Statement, including post-effective amendments, all exhibits and all material
        incorporated by reference in such Registration Statement.

       

      “SEC”
        means
        the U.S. Securities and Exchange Commission.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Shares”
        means
        the shares of Common Stock issued upon conversion of the
        Debentures.

       

      “1933
        Act”
        means
        the Securities Act of 1933, as amended, and the rules and regulations
        promulgated thereunder.

       

      “1934
        Act”
        means
        the Securities Exchange Act of 1934, as amended, and the rules and regulations
        promulgated thereunder.

       

      “Warrants”
        means,
        the warrants to purchase shares of Common Stock issued to the Investors pursuant
        to the Purchase Agreement, the form of which is attached to the Purchase
        Agreement as Exhibit A.

       

      “Warrant
        Shares”
        means
        the shares of Common Stock issuable upon the exercise of the
        Warrants.

       

      2. Registration.

       

      (a)  Registration
        Statements.

       

      (i) Promptly
        following the closing of the purchase and sale of the securities contemplated
        by
        the Purchase Agreement (the “Closing Date”) but no later than fortySixty-five
        (465)
        days
        after the Closing Date (the “Filing Deadline”), the Company shall prepare and
        file with the SEC one Registration Statement on Form SB-2 (or, if Form SB-2
        is
        not then available to the Company, on such form of registration statement
        as is
        then available to effect a registration for resale of the Registrable
        Securities, subject to the Required Investors’ consent), covering the resale of
        the Registrable Securities in an amount at least equal to the number of Shares
        plus the number of shares of Common Stock necessary to permit the exercise
        in
        full of the Warrants. Such Registration Statement shall include the plan
        of
        distribution attached hereto as Exhibit
        A.
        Such
        Registration Statement also shall cover, to the extent allowable under the
        1933
        Act and the rules promulgated thereunder (including Rule 416), such
        indeterminate number of additional shares of Common Stock resulting from
        stock
        splits, stock dividends or similar transactions with respect to the Registrable
        Securities. The Registration Statement (and each amendment or supplement
        thereto, and each request for acceleration of effectiveness thereof) shall
        be
        provided in accordance with Section 3(c) to the Investor and their counsel
        prior
        to its filing or other submission. If a Registration Statement covering the
        Registrable Securities is not filed with the SEC on or prior to the Filing
        Deadline, the Company will make payment to the Investor, as liquidated damages
        and not as a penalty, in an amount equal to 1.0% of the aggregate amount
        invested by such Investor for each 30-day period or pro rata for any portion
        thereof following the date by which such Registration Statement should have
        been
        filed for which no Registration Statement is filed with respect to the
        Registrable Securities. Such payments shall be in partial compensation to
        the
        Investor, and shall not constitute the Investor’s exclusive remedy for such
        events. 

       

      (ii) Additional
        Registrable Securities.
        Upon
        the written demand of the Investor and upon any change in the Warrant Price
        (as
        defined in the Warrant) such that additional shares of Common Stock become
        issuable upon the exercise of the Warrants, the Company shall prepare and
        file
        with the SEC one or more Registration Statements on Form SB-2 or amend the
        Registration Statement filed pursuant to clause (i) above, if such Registration
        Statement has not previously been declared effective (or, if Form SB-2 is
        not
        then available to the Company, on such form of registration statement as
        is then
        available to effect a registration for resale of such additional shares of
        Common Stock (the “Additional Shares”), subject to the Investors’ consent)
        covering the resale of the Additional Shares, but only to the extent the
        Additional Shares are not at the time covered by an effective Registration
        Statement. Such Registration Statement also shall cover, to the extent allowable
        under the 1933 Act and the rules promulgated thereunder (including Rule 416),
        such indeterminate number of additional shares of Common Stock resulting
        from
        stock splits, stock dividends or similar transactions with respect to the
        Additional Shares. The Registration Statement (and each amendment or supplement
        thereto, and each request for acceleration of effectiveness thereof) shall
        be
        provided in accordance with Section 3(c) to the Investor and their counsel
        prior
        to its filing or other submission. If a Registration Statement covering the
        Additional Shares is required to be filed under this Section 2(a)(ii) and
        is not
        filed with the SEC within twenty Business Days of the request of any Investor
        or
        upon the occurrence of any of the events specified in this Section 2(a)(ii),
        the
        Company will pay to the Investor, as liquidated damages and not as a penalty,
        in
        an amount equal to 1.0% of the aggregate amount invested by such Investor
        for
        each 30-day period or pro rata for any portion thereof following the date
        by
        which such Registration Statement should have been filed for which no
        Registration Statement is filed with respect to the Additional Shares. Such
        payments shall be in partial compensation to the Investor, and shall not
        constitute the Investor’s exclusive remedy for such events. 

       

      
        
           

        

        
          -
            2
            -

          
            

          

        

        
           

        

      

      (b)  Expenses.
        The
        Company will pay all expenses associated with each registration, including
        filing and printing fees, the Company’s counsel and accounting fees and
        expenses, costs associated with clearing the Registrable Securities for sale
        under applicable state securities laws, listing fees, fees and expenses of
        one
        counsel to the Investors and the Investors’ reasonable expenses in connection
        with the registration, but excluding discounts, commissions, fees of
        underwriters, selling brokers, dealer managers or similar securities industry
        professionals with respect to the Registrable Securities being
        sold.

       

      (c)  Effectiveness.

       

      (i) The
        Company shall use commercially reasonable efforts to have the Registration
        Statement declared effective as soon as practicable. The Company shall notify
        the Investor by facsimile or e-mail after any Registration Statement is declared
        effective and shall simultaneously provide the Investors with copies of any
        related Prospectus to be used in connection with the sale or other disposition
        of the securities covered thereby. If (A)(x) a Registration Statement covering
        the Registrable Securities is not declared effective by the SEC within one
        hundred twenty (120) days after the Filing Deadline, or (y) a Registration
        Statement covering Additional Shares is not declared effective by the SEC
        within
        ninety (90) days following the time such Registration Statement was required
        to
        be filed pursuant to Section 2(a)(ii) or (B)
        after
        a Registration Statement has been declared effective by the SEC, sales cannot
        be
        made pursuant to such Registration Statement for any reason (including without
        limitation by reason of a stop order, or the Company’s failure to update the
        Registration Statement), but excluding the inability of the Investor to sell
        the
        Registrable Securities covered thereby due to market conditions and except
        as
        excused pursuant to subparagraph (ii) below, then
        the
        Company will make payment to the Investor, as liquidated damages and not
        as a
        penalty, in an amount equal to 1.0% of the aggregate amount invested by such
        Investor for each 30- day period or pro rata for any portion thereof following
        the date by which such Registration Statement should have been effective
        (the
“Blackout Period”). Such payments shall be in partial compensation to the
        Investor, and shall not constitute the Investor’s exclusive remedy for such
        events. 

       

      
        
           

        

        
          -
            3
            -

          
            

          

        

        
           

        

      

      (ii) For
        not
        more than twenty (20) consecutive days or for a total of not more than
        forty-five (45) days in any twelve (12) month period, the Company may delay
        the
        disclosure of material non-public information concerning the Company, by
        suspending the use of any Prospectus included in any registration contemplated
        by this Section containing such information, the disclosure of which at the
        time
        is not, in the good faith opinion of the Company, in the best interests of
        the
        Company (an “Allowed Delay”); provided, that the Company shall promptly (a)
        notify the Investors in writing of the existence of (but in no event, without
        the prior written consent of an Investor, shall the Company disclose to such
        Investor any of the facts or circumstances regarding) material non-public
        information giving rise to an Allowed Delay, (b) advise the Investors in
        writing
        to cease all sales under the Registration Statement until the end of the
        Allowed
        Delay and (c) use commercially reasonable efforts to terminate an Allowed
        Delay
        as promptly as practicable.

       

      3. Company
        Obligations.
        The
        Company will use commercially reasonable efforts to effect the registration
        of
        the Registrable Securities in accordance with the terms hereof, and pursuant
        thereto the Company will, as expeditiously as possible:

       

      (a)  use
        commercially reasonable efforts to cause such Registration Statement to become
        effective and to remain continuously effective for a period that will terminate
        upon the earlier of (i) the date on which all Registrable Securities covered
        by
        such Registration Statement as amended from time to time, have been sold,
        and
        (ii) the date on which all Registrable Securities covered by such Registration
        Statement may be sold pursuant to Rule 144(k) (the “Effectiveness Period”) and
        advise the Investors in writing when the Effectiveness Period has
        expired;

       

      (b)  prepare
        and file with the SEC such amendments and post-effective amendments to the
        Registration Statement and the Prospectus as may be necessary to keep the
        Registration Statement effective for the period specified in Section 3(a)
        and to
        comply with the provisions of the 1933 Act and the 1934 Act with respect
        to the
        distribution of all of the Registrable Securities covered thereby;

       

      (c)  provide
        copies to and permit counsel designated by the Investors to review each
        Registration Statement and all amendments and supplements thereto prior to
        their
        filing with the SEC and not file any document to which such counsel reasonably
        objects based upon such counsel’s belief that such Registration Statement is not
        in compliance with applicable laws, rule or regulations or contains a material
        misstatement or omission;

       

      (d)  furnish
        to the Investor and their legal counsel (i) promptly after the same is prepared
        and publicly distributed, filed with the SEC, or received by the Company
        one (1)
        copy of any Registration Statement and any amendment thereto, each preliminary
        prospectus and Prospectus and each amendment or supplement thereto, and each
        letter written by or on behalf of the Company to the SEC or the staff of
        the
        SEC, and each item of correspondence from the SEC or the staff of the SEC,
        in
        each case relating to such Registration Statement (other than any portion
        of any
        thereof which contains information for which the Company has sought confidential
        treatment), and (ii) such number of copies of a Prospectus, including a
        preliminary prospectus, and all amendments and supplements thereto and such
        other documents as each Investor may reasonably request in order to facilitate
        the disposition of the Registrable Securities owned by such Investor that
        are
        covered by the related Registration Statement;

       

      
        
           

        

        
          -
            4
            -

          
            

          

        

        
           

        

      

      (e)  use
        commercially reasonable efforts to (i) prevent the issuance of any stop order
        or
        other suspension of effectiveness and, (ii) if such order is issued, obtain
        the
        withdrawal of any such order at the earliest possible moment;

       

      (f)  prior
        to
        any public offering of Registrable Securities, use commercially reasonable
        efforts to register or qualify or cooperate with the Investors and their
        counsel
        in connection with the registration or qualification of such Registrable
        Securities for offer and sale under the securities or blue sky laws of such
        jurisdictions requested by the Investors and do any and all other commercially
        reasonable acts or things necessary or advisable to enable the distribution
        in
        such jurisdictions of the Registrable Securities covered by the Registration
        Statement;
        provided, however, that the Company shall not be required in connection
        therewith or as a condition thereto to (i) qualify to do business in any
        jurisdiction where it would not otherwise be required to qualify but for
        this
        Section 3(f), (ii) subject itself to general taxation in any jurisdiction
        where
        it would not otherwise be so subject but for this Section 3(f), or (iii)
        file a
        general consent to service of process in any such jurisdiction;

       

      (g)  use
        commercially reasonable efforts to cause all Registrable Securities covered
        by a
        Registration Statement to be listed on each securities exchange, interdealer
        quotation system or other market on which similar securities issued by the
        Company are then listed;

       

      (h)  immediately
        notify the Investors, at any time when a Prospectus relating to Registrable
        Securities is required to be delivered under the 1933 Act, upon discovery
        that,
        or upon the happening of any event as a result of which, the Prospectus included
        in a Registration Statement, as then in effect, includes an untrue statement
        of
        a material fact or omits to state any material fact required to be stated
        therein or necessary to make the statements therein not misleading in light
        of
        the circumstances then existing, and at the request of any such holder, promptly
        prepare and furnish to such holder a reasonable number of copies of a supplement
        to or an amendment of such Prospectus as may be necessary so that, as thereafter
        delivered to the purchasers of such Registrable Securities, such Prospectus
        shall not include an untrue statement of a material fact or omit to state
        a
        material fact required to be stated therein or necessary to make the statements
        therein not misleading in light of the circumstances then existing;
        and

       

      (i)  otherwise
        use commercially reasonable efforts to comply with all applicable rules and
        regulations of the SEC under the 1933 Act and the 1934 Act, take such other
        actions as may be reasonably necessary to facilitate the registration of
        the
        Registrable Securities hereunder.

       

      (j)  With
        a
        view to making available to the Investor the benefits of Rule 144 (or its
        successor rule) and any other rule or regulation of the SEC that may at any
        time
        permit the Investors to sell shares of Common Stock to the public without
        registration, the Company covenants and agrees to: (i) make and keep public
        information available, as those terms are understood and defined in Rule
        144,
        until the earlier of (A) six months after such date as all of the Registrable
        Securities may be resold pursuant to Rule 144(k) or any other rule of similar
        effect or (B) such date as all of the Registrable Securities shall have been
        resold; (ii) file with the SEC in a timely manner all reports and other
        documents required of the Company under the 1934 Act; and (iii) furnish to
        each
        Investor upon request, as long as such Investor owns any Registrable Securities,
        (A) a written statement by the Company that it has complied with the reporting
        requirements of the 1934 Act, (B) a copy of the Company’s most recent Annual
        Report on Form 10-KSB or Quarterly Report on Form 10-QSB, and (C) such other
        information as may be reasonably requested in order to avail such Investor
        of
        any rule or regulation of the SEC that permits the selling of any such
        Registrable Securities without registration.

      

      
        
           

        

        
          -
            5
            -

          
            

          

        

        
           

        

      

      4. Due
        Diligence Review; Information.
        The
        Company shall make available, during normal business hours, for inspection
        and
        review by the Investors, advisors to and representatives of the Investors
        (who
        may or may not be affiliated with the Investors and who are reasonably
        acceptable to the Company), all financial and other records, all SEC Filings
        (as
        defined in the Purchase Agreement) and other filings with the SEC, and all
        other
        corporate documents and properties of the Company as may be reasonably necessary
        for the purpose of such review, and cause the Company’s officers, directors and
        employees, within a reasonable time period, to supply all such information
        reasonably requested by the Investors or any such representative, advisor
        or
        underwriter in connection with such Registration Statement (including, without
        limitation, in response to all questions and other inquiries reasonably made
        or
        submitted by any of them), prior to and from time to time after the filing
        and
        effectiveness of the Registration Statement for the sole purpose of enabling
        the
        Investors and such representatives, advisors and underwriters and their
        respective accountants and attorneys to conduct initial and ongoing due
        diligence with respect to the Company and the accuracy of such Registration
        Statement.

       

      The
        Company shall not disclose material nonpublic information to the Investors,
        or
        to advisors to or representatives of the Investors, unless prior to disclosure
        of such information the Company identifies such information as being material
        nonpublic information and provides the Investors, such advisors and
        representatives with the opportunity to accept or refuse to accept such material
        nonpublic information for review and any Investor wishing to obtain such
        information enters into an appropriate confidentiality agreement with the
        Company with respect thereto.

       

      5. Obligations
        of the Investor.

       

      (a)  The
        Investor shall furnish in writing to the Company such information regarding
        itself, the Registrable Securities held by it and the intended method of
        disposition of the Registrable Securities held by it, as shall be reasonably
        required to effect the registration of such Registrable Securities and shall
        execute such documents in connection with such registration as the Company
        may
        reasonably request. At least five (5) Business Days prior to the first
        anticipated filing date of any Registration Statement, the Company shall
        notify
        each Investor of the information the Company requires from such Investor
        if such
        Investor elects to have any of the Registrable Securities included in the
        Registration Statement. The Investor shall provide such information to the
        Company at least two (2) Business Days prior to the first anticipated filing
        date of such Registration Statement if such Investor elects to have any of
        the
        Registrable Securities included in the Registration Statement.

       

      
        
           

        

        
          -
            6
            -

          
            

          

        

        
           

        

      

      (b)  The
        Investor, by its acceptance of the Registrable Securities agrees to cooperate
        with the Company as reasonably requested by the Company in connection with
        the
        preparation and filing of a Registration Statement hereunder, unless the
        Investor has notified the Company in writing of its election to exclude all
        of
        its Registrable Securities from such Registration Statement.

       

      (c)  The
        Investor agrees that, upon receipt of any notice from the Company of either
        (i)
        the commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii)
        the
        happening of an event pursuant to Section 3(h) hereof, such Investor will
        immediately discontinue disposition of Registrable Securities pursuant to
        the
        Registration Statement covering such Registrable Securities, until the
        Investor’s receipt of the copies of the supplemented or amended prospectus filed
        with the SEC and until any related post-effective amendment is declared
        effective and, if so directed by the Company, the Investor shall deliver
        to the
        Company (at the expense of the Company) or destroy (and deliver to the Company
        a
        certificate of destruction) all copies in the Investor’s possession of the
        Prospectus covering the Registrable Securities current at the time of receipt
        of
        such notice.

       

      6. Indemnification.

       

      (a)  Indemnification
        by the Company.
        The
        Company will indemnify and hold harmless each Investor and its officers,
        directors, members, employees and agents, successors and assigns, and each
        other
        person, if any, who controls such Investor within the meaning of the 1933
        Act,
        against any losses, claims, damages or liabilities, joint or several, to
        which
        they may become subject under the 1933 Act or otherwise, insofar as such
        losses,
        claims, damages or liabilities (or actions in respect thereof) arise out
        of or
        are based upon: (i) any untrue statement or alleged untrue statement of any
        material fact contained in any Registration Statement, any preliminary
        prospectus or final prospectus contained therein, or any amendment or supplement
        thereof; (ii) any blue sky application or other document executed by the
        Company
        specifically for that purpose or based upon written information furnished
        by the
        Company filed in any state or other jurisdiction in order to qualify any
        or all
        of the Registrable Securities under the securities laws thereof (any such
        application, document or information herein called a “Blue
        Sky
        Application”);
        (iii)
        the omission or alleged omission to state therein a material fact required
        to be
        stated therein or necessary to make the statements therein not misleading;
        (iv)
        any violation by the Company or its agents of any rule or regulation promulgated
        under the 1933 Act applicable to the Company or its agents and relating to
        action or inaction required of the Company in connection with such registration;
        or (v) any failure to register or qualify the Registrable Securities included
        in
        any such Registration in any state where the Company or its agents has
        affirmatively undertaken or agreed in writing that the Company will undertake
        such registration or qualification on an Investor’s behalf and will reimburse
        such Investor, and each such officer, director or member and each such
        controlling person for any legal or other expenses reasonably incurred by
        them
        in connection with investigating or defending any such loss, claim, damage,
        liability or action; provided,
        however,
        that
        the Company will not be liable in any such case if and to the extent that
        any
        such loss, claim, damage or liability arises out of or is based upon an untrue
        statement or alleged untrue statement or omission or alleged omission so
        made in
        conformity with information furnished by such Investor or any such controlling
        person in writing specifically for use in such Registration Statement or
        Prospectus.

       

      
        
           

        

        
          -
            7
            -

          
            

          

        

        
           

        

      

      (b)  Indemnification
        by the Investor.
        The
        Investor agrees, severally but not jointly, to indemnify and hold harmless,
        to
        the fullest extent permitted by law, the Company, its directors, officers,
        employees, stockholders and each person who controls the Company (within
        the
        meaning of the 1933 Act) against any losses, claims, damages, liabilities
        and
        expense (including reasonable attorney fees) resulting from any untrue statement
        of a material fact or any omission of a material fact required to be stated
        in
        the Registration Statement or Prospectus or preliminary prospectus or amendment
        or supplement thereto or necessary to make the statements therein not
        misleading, to the extent, but only to the extent that such untrue statement
        or
        omission is contained in any information furnished in writing by such Investor
        to the Company specifically for inclusion in such Registration Statement
        or
        Prospectus or amendment or supplement thereto. In no event shall the liability
        of the Investor be greater in amount than the dollar amount of the proceeds
        (net
        of all expense paid by the Investor in connection with any claim relating
        to
        this Section 6 and the amount of any damages the Investor has otherwise been
        required to pay by reason of such untrue statement or omission) received
        by such
        Investor upon the sale of the Registrable Securities included in the
        Registration Statement giving rise to such indemnification
        obligation.

       

      (c)  Conduct
        of Indemnification Proceedings.
        Any
        person entitled to indemnification hereunder shall (i) give prompt notice
        to the
        indemnifying party of any claim with respect to which it seeks indemnification
        and (ii) permit such indemnifying party to assume the defense of such claim
        with
        counsel reasonably satisfactory to the indemnified party; provided
        that any
        person entitled to indemnification hereunder shall have the right to employ
        separate counsel and to participate in the defense of such claim, but the
        fees
        and expenses of such counsel shall be at the expense of such person unless
        (a)
        the indemnifying party has agreed to pay such fees or expenses, or (b) the
        indemnifying party shall have failed to assume the defense of such claim
        and
        employ counsel reasonably satisfactory to such person or (c) in the reasonable
        judgment of any such person, based upon written advice of its counsel, a
        conflict of interest exists between such person and the indemnifying party
        with
        respect to such claims (in which case, if the person notifies the indemnifying
        party in writing that such person elects to employ separate counsel at the
        expense of the indemnifying party, the indemnifying party shall not have
        the
        right to assume the defense of such claim on behalf of such person); and
        provided,
        further,
        that
        the failure of any indemnified party to give notice as provided herein shall
        not
        relieve the indemnifying party of its obligations hereunder, except to the
        extent that such failure to give notice shall materially adversely affect
        the
        indemnifying party in the defense of any such claim or litigation. It is
        understood that the indemnifying party shall not, in connection with any
        proceeding in the same jurisdiction, be liable for fees or expenses of more
        than
        one separate firm of attorneys at any time for all such indemnified parties.
        No
        indemnifying party will, except with the consent of the indemnified party,
        consent to entry of any judgment or enter into any settlement that does not
        include as an unconditional term thereof the giving by the claimant or plaintiff
        to such indemnified party of a release from all liability in respect of such
        claim or litigation.

       

      (d)  Contribution.
        If for
        any reason the indemnification provided for in the preceding paragraphs (a)
        and
        (b) is unavailable to an indemnified party or insufficient to hold it harmless,
        other than as expressly specified therein, then the indemnifying party shall
        contribute to the amount paid or payable by the indemnified party as a result
        of
        such loss, claim, damage or liability in such proportion as is appropriate
        to
        reflect the relative fault of the indemnified party and the indemnifying
        party,
        as well as any other relevant equitable considerations. No person guilty
        of
        fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
        Act
        shall be entitled to contribution from any person not guilty of such fraudulent
        misrepresentation. In no event shall the contribution obligation of a holder
        of
        Registrable Securities be greater in amount than the dollar amount of the
        proceeds (net of all expenses paid by such holder in connection with any
        claim
        relating to this Section 6 and the amount of any damages such holder has
        otherwise been required to pay by reason of such untrue or alleged untrue
        statement or omission or alleged omission) received by it upon the sale of
        the
        Registrable Securities giving rise to such contribution obligation.

       

      
        
           

        

        
          -
            8
            -

          
            

          

        

        
           

        

      

      7. Miscellaneous.

       

      (a)  Amendments
        and Waivers.
        This
        Agreement may be amended only by a writing signed by the Company and the
        Required Investors. The Company may take any action herein prohibited, or
        omit
        to perform any act herein required to be performed by it, only if the Company
        shall have obtained the written consent to such amendment, action or omission
        to
        act, of the Required Investors.

       

      (b)  Notices.
        All
        notices and other communications provided for or permitted hereunder shall
        be
        made as set forth in Section 9.4 of the Purchase Agreement.

       

      (c)  Assignments
        and Transfers by Investor.
        The
        provisions of this Agreement shall be binding upon and inure to the benefit
        of
        the Investors and their respective successors and assigns. The Investor may
        transfer or assign, in whole or from time to time in part, to one or more
        persons its rights hereunder in connection with the transfer of Registrable
        Securities by such Investor to such person, provided that the Investor complies
        with all laws applicable thereto and provides written notice of assignment
        to
        the Company promptly after such assignment is effected.

       

      (d)  Assignments
        and Transfers by the Company.
        This
        Agreement may not be assigned by the Company (whether by operation of law
        or
        otherwise) without the prior written consent of the Investor, provided, however,
        that the Company may assign its rights and delegate its duties hereunder
        to any
        surviving or successor corporation in connection with a merger or consolidation
        of the Company with another corporation, or a sale, transfer or other
        disposition of all or substantially all of the Company’s assets to another
        corporation, without the prior written consent of the Required Investors,
        after
        notice duly given by the Company to each Investor.

       

      (e)  Benefits
        of the Agreement.
        The
        terms and conditions of this Agreement shall inure to the benefit of and
        be
        binding upon the respective permitted successors and assigns of the parties.
        Nothing in this Agreement, express or implied, is intended to confer upon
        any
        party other than the parties hereto or their respective successors and assigns
        any rights, remedies, obligations, or liabilities under or by reason of this
        Agreement, except as expressly provided in this Agreement.

       

      
        
           

        

        
          -
            9
            -

          
            

          

        

        
           

        

      

      (f)  Counterparts;
        Faxes.
        This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. This Agreement may also be executed via facsimile, which shall
        be
        deemed an original.

       

      (g)  Titles
        and Subtitles.
        The
        titles and subtitles used in this Agreement are used for convenience only
        and
        are not to be considered in construing or interpreting this
        Agreement.

       

      (h)  Severability.
        Any
        provision of this Agreement that is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof but shall be interpreted as if it were written so as to
        be
        enforceable to the maximum extent permitted by applicable law, and any such
        prohibition or unenforceability in any jurisdiction shall not invalidate
        or
        render unenforceable such provision in any other jurisdiction. To the extent
        permitted by applicable law, the parties hereby waive any provision of law
        which
        renders any provisions hereof prohibited or unenforceable in any
        respect.

       

      (i)  Further
        Assurances.
        The
        parties shall execute and deliver all such further instruments and documents
        and
        take all such other actions as may reasonably be required to carry out the
        transactions contemplated hereby and to evidence the fulfillment of the
        agreements herein contained.

       

      (j)  Entire
        Agreement.
        This
        Agreement is intended by the parties as a final expression of their agreement
        and intended to be a complete and exclusive statement of the agreement and
        understanding of the parties hereto in respect of the subject matter contained
        herein. This Agreement supersedes all prior agreements and understandings
        between the parties with respect to such subject matter.

       

      (k)  Governing
        Law; Consent to Jurisdiction; Waiver of Jury Trial.
        This
        Agreement shall be governed by, and construed in accordance with, the internal
        laws of the State of Nevada without regard to the choice of law principles
        thereof. Each of the parties hereto irrevocably submits to the exclusive
        jurisdiction of the courts of the State of Nevada located in Nevada and the
        United States District Court located therein for the purpose of any suit,
        action, proceeding or judgment relating to or arising out of this Agreement
        and
        the transactions contemplated hereby. Service of process in connection with
        any
        such suit, action or proceeding may be served on each party hereto anywhere
        in
        the world by the same methods as are specified for the giving of notices
        under
        this Agreement. Each of the parties hereto irrevocably consents to the
        jurisdiction of any such court in any such suit, action or proceeding and
        to the
        laying of venue in such court. Each party hereto irrevocably waives any
        objection to the laying of venue of any such suit, action or proceeding brought
        in such courts and irrevocably waives any claim that any such suit, action
        or
        proceeding brought in any such court has been brought in an inconvenient
        forum.
EACH
        OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
        LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS
        BEEN
        CONSULTED SPECIFICALLY AS TO THIS WAIVER.

       

      
        
           

        

        
          -
            10
            -

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement or caused their
        duly
        authorized officers to execute this Agreement as of the date first above
        written.

       

      
        	 	 	 
	 The
                Company: 	TRIANGLE
                PETROLEUM CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/ MARK
                GUSTAFSON
	 	
                
Name:
                Mark Gustafson
	 	Title :
                President

      

         

      
        
           

        

        
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	 The
                Investor:	ROWLINGS
                FINANCIAL, INC.
	 
 	 
 	 
 
	 	By:  	/s/ SILVIO
                ROSSETTI
	 	
                
Name:
                Dr. Silvio Rossetti
	 	Title :
                Attorney

  

      
        
           

        

        
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      Exhibit
        A

      

      Plan
        of Distribution

      

      The
        selling stockholders, which as used herein includes donees, pledgees,
        transferees or other successors-in-interest selling shares of common stock
        or
        interests in shares of common stock received after the date of this prospectus
        from a selling stockholder as a gift, pledge, partnership distribution or
        other
        transfer, may, from time to time, sell, transfer or otherwise dispose of
        any or
        all of their shares of common stock or interests in shares of common stock
        on
        any stock exchange, market or trading facility on which the shares are traded
        or
        in private transactions. These dispositions may be at fixed prices, at
        prevailing market prices at the time of sale, at prices related to the
        prevailing market price, at varying prices determined at the time of sale,
        or at
        negotiated prices.

      

      The
        selling stockholders may use any one or more of the following methods when
        disposing of shares or interests therein:

      

      -
        ordinary brokerage transactions and transactions in which the broker-dealer
        solicits purchasers;

      

      -
        block
        trades in which the broker-dealer will attempt to sell the shares as agent,
        but
        may position and resell a portion of the block as principal to facilitate
        the
        transaction;

      

      -
        purchases by a broker-dealer as principal and resale by the broker-dealer
        for
        its account;

      

      -
        an
        exchange distribution in accordance with the rules of the applicable
        exchange;

      

      -
        privately negotiated transactions;

      

      -
        short
        sales effected after the date the registration statement of which this
        Prospectus is a part is declared effective by the SEC;

      

      -
        through
        the writing or settlement of options or other hedging transactions, whether
        through an options exchange or otherwise;

      

      -
        broker-dealers may agree with the selling stockholders to sell a specified
        number of such shares at a stipulated price per share;

      

      -
        a
        combination of any such methods of sale; and

      

      -
        any
        other method permitted pursuant to applicable law.

      

      The
        selling stockholders may, from time to time, pledge or grant a security interest
        in some or all of the shares of common stock owned by them and, if they default
        in the performance of their secured obligations, the pledgees or secured
        parties
        may offer and sell the shares of common stock, from time to time, under this
        prospectus, or under an amendment to this prospectus under Rule 424(b)(3)
        or
        other applicable provision of the Securities Act amending the list of selling
        stockholders to include the pledgee, transferee or other successors in interest
        as selling stockholders under this prospectus. The selling stockholders also
        may
        transfer the shares of common stock in other circumstances, in which case
        the
        transferees, pledgees or other successors in interest will be the selling
        beneficial owners for purposes of this prospectus.

      

      
        
           

        

        
          -
            13
            -

          
            

          

        

        
           

        

      

      In
        connection with the sale of our common stock or interests therein, the selling
        stockholders may enter into hedging transactions with broker-dealers or other
        financial institutions, which may in turn engage in short sales of the common
        stock in the course of hedging the positions they assume. The selling
        stockholders may also sell shares of our common stock short and deliver these
        securities to close out their short positions, or loan or pledge the common
        stock to broker-dealers that in turn may sell these securities. The selling
        stockholders may also enter into option or other transactions with
        broker-dealers or other financial institutions or the creation of one or
        more
        derivative securities which require the delivery to such broker-dealer or
        other
        financial institution of shares offered by this prospectus, which shares
        such
        broker-dealer or other financial institution may resell pursuant to this
        prospectus (as supplemented or amended to reflect such
        transaction).

      

      The
        aggregate proceeds to the selling stockholders from the sale of the common
        stock
        offered by them will be the purchase price of the common stock less discounts
        or
        commissions, if any. Each of the selling stockholders reserves the right
        to
        accept and, together with their agents from time to time, to reject, in whole
        or
        in part, any proposed purchase of common stock to be made directly or through
        agents. We will not receive any of the proceeds from this offering. Upon
        any
        exercise of the warrants by payment of cash, however, we will receive the
        exercise price of the warrants.

      

      The
        selling stockholders also may resell all or a portion of the shares in open
        market transactions in reliance upon Rule 144 under the Securities Act of
        1933,
        provided that they meet the criteria and conform to the requirements of that
        rule.

      

      The
        selling stockholders and any underwriters, broker-dealers or agents that
        participate in the sale of the common stock or interests therein may be
        "underwriters" within the meaning of Section 2(11) of the Securities Act.
        Any
        discounts, commissions, concessions or profit they earn on any resale of
        the
        shares may be underwriting discounts and commissions under the Securities
        Act.
        Selling stockholders who are "underwriters" within the meaning of Section
        2(11)
        of the Securities Act will be subject to the prospectus delivery requirements
        of
        the Securities Act.

      

      To
        the
        extent required, the shares of our common stock to be sold, the names of
        the
        selling stockholders, the respective purchase prices and public offering
        prices,
        the names of any agents, dealer or underwriter, any applicable commissions
        or
        discounts with respect to a particular offer will be set forth in an
        accompanying prospectus supplement or, if appropriate, a post-effective
        amendment to the registration statement that includes this
        prospectus.

      

      In
        order
        to comply with the securities laws of some states, if applicable, the common
        stock may be sold in these jurisdictions only through registered or licensed
        brokers or dealers. In addition, in some states the common stock may not
        be sold
        unless it has been registered or qualified for sale or an exemption from
        registration or qualification requirements is available and is complied
        with.

      

      
        
           

        

        
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            14
            -

          
            

          

        

        
           

        

      

      We
        have
        advised the selling stockholders that the anti-manipulation rules of Regulation
        M under the Exchange Act may apply to sales of shares in the market and to
        the
        activities of the selling stockholders and their affiliates. In addition,
        we
        will make copies of this prospectus (as it may be supplemented or amended
        from
        time to time) available to the selling stockholders for the purpose of
        satisfying the prospectus delivery requirements of the Securities Act. The
        selling stockholders may indemnify any broker-dealer that participates in
        transactions involving the sale of the shares against certain liabilities,
        including liabilities arising under the Securities Act.

      

      We
        have
        agreed to indemnify the selling stockholders against liabilities, including
        liabilities under the Securities Act and state securities laws, relating
        to the
        registration of the shares offered by this prospectus.

      

      We
        have
        agreed with the selling stockholders to keep the registration statement of
        which
        this prospectus constitutes a part effective until the earlier of (1) such
        time
        as all of the shares covered by this prospectus have been disposed of pursuant
        to and in accordance with the registration statement or (2) the date on which
        the shares may be sold pursuant to Rule 144(k) of the Securities
        Act.

      

      
        
           

        

        
          -
            15
            -

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