Document:

EXHIBIT 10.1

 

 

 

NOTE PURCHASE AGREEMENT

 

between

 

TRIANGLE PETROLEUM
CORPORATION

 

and

 

NGP TRIANGLE HOLDINGS,
LLC

 

dated as of July 31, 2012

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I
	 
	DEFINITIONS
	 	 	 
	Section 1.01	Definitions	1
	Section 1.02	Accounting Procedures and Interpretation	6
	 	 	 
	ARTICLE II
	 
	AGREEMENT TO SELL AND PURCHASE
	 	 	 
	Section 2.01	Sale and Purchase	6
	Section 2.02	Closing	6
	Section 2.03	Triangle Closing Deliverables	7
	Section 2.04	Purchaser Closing Deliverables	8
	 	 	 
	ARTICLE III
	 
	REPRESENTATIONS AND WARRANTIES OF TRIANGLE
	 	 	 
	Section 3.01	Formation and Qualification	8
	Section 3.02	Ownership of Subsidiaries	9
	Section 3.03	No Other Subsidiaries	9
	Section 3.04	Authorization; Enforceability; Valid Issuance.	9
	Section 3.05	Capitalization; No Preemptive Rights, Registration Rights or Options.	10
	Section 3.06	No Breach	11
	Section 3.07	No Approvals	11
	Section 3.08	Compliance with Laws and Agreements.	11
	Section 3.09	Corporate Records	11
	Section 3.10	Triangle SEC Documents; Triangle Financial Statements.	12
	Section 3.11	Books and Records; Sarbanes-Oxley Compliance.	13
	Section 3.12	No Material Adverse Change	13
	Section 3.13	Solvency	14
	Section 3.14	Title to Property.	14
	Section 3.15	Reserve Engineers; Reserve Estimates.	15
	Section 3.16	Insurance	15
	Section 3.17	Litigation	15
	Section 3.18	Labor, Employment and Benefit Matters.	16
	Section 3.19	Tax Returns.	17
	Section 3.20	Environmental Matters	18
	Section 3.21	Permits	18
	Section 3.22	Foreign Corrupt Practices Act; Money Laundering.	19
	Section 3.23	NYSE MKT Listing	19
	Section 3.24	Related Party Transactions	19

  

    	i

    	 

    

  

	Section 3.25	Control Share Acquisition and Business Combinations	19
	Section 3.26	Investment Company	19
	Section 3.27	Certain Fees	20
	Section 3.28	Form S-3 Eligibility	20
	Section 3.29	Required Stockholder Vote	20
	Section 3.30	Private Placement	20
	Section 3.31	Other Regulatory Compliance	20
	 	 	 
	ARTICLE IV
	 
	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
	 	 	 
	Section 4.01	Existence	20
	Section 4.02	Authorization; Enforceability	20
	Section 4.03	No Breach	21
	Section 4.04	Certain Fees.	21
	Section 4.05	Unregistered Securities.	21
	Section 4.06	Limitation on Conversion	23
	 	 	 
	ARTICLE V
	 
	COVENANTS
	 	 	 
	Section 5.01	Stockholder Vote with Respect to Conversion; Listing on NYSE MKT.	23
	Section 5.02	Control Share Acquisition and Business Combinations; Stockholder Rights Plans	25
	Section 5.03	HSR Compliance	25
	Section 5.04	Further Assurances; Listing of Underlying Shares	25
	Section 5.05	Section 16(b) Matters	25
	 	 	 
	ARTICLE VI
	 
	INDEMNIFICATION, COSTS AND EXPENSES
	 	 	 
	Section 6.01	Indemnification by Triangle	26
	Section 6.02	Indemnification by the Purchaser	26
	Section 6.03	Indemnification Procedure.	27
	Section 6.04	Tax Matters	28
	Section 6.05	Exclusive Remedy	28
	 	 	 
	ARTICLE VII
	 
	MISCELLANEOUS
	 	 	 
	Section 7.01	Fees and Expenses	28
	Section 7.02	Interpretation.	28
	Section 7.03	Survival of Provisions	29
	Section 7.04	No Waiver; Modifications in Writing.	29
	Section 7.05	Binding Effect; Assignment.	30
	Section 7.06	Non-Disclosure	30

  

    	ii

    	 

    

  

	Section 7.07	Communications	30
	Section 7.08	Removal of Legend.	32
	Section 7.09	Entire Agreement	32
	Section 7.10	Governing Law; Submission to Jurisdiction	32
	Section 7.11	Waiver of Jury Trial	33
	Section 7.12	Execution in Counterparts	33

 

Schedules

 

	Exhibit A	Convertible Note
	Exhibit B	Registration Rights Agreement
	Exhibit C	Investment Agreement
	Exhibit D	Opinion of Counsel for Triangle

 

    	iii

    	 

    

 

NOTE PURCHASE AGREEMENT

 

This NOTE PURCHASE
AGREEMENT, dated as of July 31, 2012 (this “Agreement”), is entered into by and between Triangle Petroleum
Corporation, a Nevada corporation (“Triangle”), and NGP Triangle Holdings, LLC, a Delaware limited liability
company (the “Purchaser”).

 

WHEREAS, at the Closing
(as defined below), and in accordance with the provisions of this Agreement, Triangle desires to sell and issue to the Purchaser,
and the Purchaser desires to purchase from Triangle, a convertible promissory note for the initial principal amount of $120,000,000
in the form attached hereto as Exhibit A (the “Convertible Note”), which is convertible into shares of
common stock, par value $0.00001 per share, of Triangle (“Common Stock”), which number of shares of Common Stock
is initially limited to an amount equal to 19.9% of the outstanding shares of Common Stock, in accordance with the terms and upon
the conditions of the Convertible Note; and

 

WHEREAS, contemporaneous
with the execution of this Agreement, the parties hereto will execute and deliver a Registration Rights Agreement, in the form
attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to which Triangle will agree
to provide certain registration rights concerning the Conversion Shares (as defined below) under the Securities Act of 1933, as
amended from time to time (the “Securities Act”), and the rules and regulations of the Commission (as defined
below) promulgated thereunder, and applicable state securities laws; and

 

WHEREAS, contemporaneous
with the execution of this Agreement, the parties hereto will execute and deliver an Investment Agreement, in the form attached
hereto as Exhibit C (the “Investment Agreement”), pursuant to which the Purchaser will be granted certain
rights to designate a member of the Board (as defined below).

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

Section
1.01     Definitions. As used in this Agreement, the following terms have the meanings
indicated:

 

“Affiliate”
means, with respect to a specified Person, any other Person, whether now in existence or hereafter created, directly or indirectly
controlling, controlled by or under direct or indirect common control with such specified Person. For purposes of this definition,
“control” (including, with correlative meanings, “controlling,” “controlled by” and “under
common control with”) means the power to direct or cause the direction of the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract or otherwise; provided, however, that
“Affiliate” shall not be deemed to include any portfolio company in which the Purchaser or any of its investment fund
Affiliates have made a debt or equity investment.

 

    	 

    	 

    

 

“Agreement”
has the meaning set forth in the introductory paragraph of this Agreement.

 

“Board”
means the Board of Directors of Triangle or any duly authorized committee thereof.

 

“Business
Day” means any day other than a Saturday, Sunday, any federal holiday or day on which banking institutions in the State
of Texas are authorized or required by Law or other governmental action to close.

 

“Closing”
shall have the meaning specified in Section 2.02.

 

“Code”
shall have the meaning specified in Section 3.18(b).

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common Stock”
shall have the meaning specified in the recitals to this Agreement.

 

“Contract”
means any contract, agreement, indenture, note, bond, mortgage, deed of trust, loan, instrument, lease, license, commitment or
other arrangement, understanding, undertaking, commitment or obligation, whether written or oral.

 

“Conversion
Shares” means the Common Stock issuable upon conversion of the Convertible Note in accordance with the terms of the Convertible
Note.

 

“Convertible
Note” shall have the meaning specified in the recitals to this Agreement.

 

“Environmental
Law” means any Law, Environmental Permit, obligation required by common law and other legally enforceable requirements
applicable to the Triangle Entities or the operation of their business relating to the protection of human health and safety (to
the extent such health or safety relate to exposure to Hazardous Materials), the environment and natural resources (including,
any natural resource damages, any generation, manufacture, processing, use, storage, treatment, disposal, release, threatened release,
discharge, or emission of Hazardous Materials into the environment, and any exposure to Hazardous Materials), including the Comprehensive
Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation
Act (49 U.S.C. § 1801 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the
Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances
Control Act (15 U.S.C. § 2601 et seq.), the Occupational Safety and Health Act (29 C.F.R. part 24 et seq.), and the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. § 136 et seq.).

 

“Environmental
Permits” means all permits, approvals, identification numbers, registrations, consents, licenses, exemptions, variances
and governmental authorizations required under or issued pursuant to any applicable Environmental Law.

 

    	2

    	 

    

 

“ERISA”
shall have the meaning specified in Section 3.18(b).

 

“ERISA Affiliate”
shall have the meaning specified in Section 3.18(b).

 

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

 

“FCPA”
shall have the meaning specified in Section 3.22(a).

 

“First Stockholders
Meeting” shall have the meaning specified in Section 5.01(a).

 

“GAAP”
means generally accepted accounting principles and practices as in the United States of America as of the period presented.

 

“Governmental
Authority” means, with respect to a particular Person, any state, county, city and political subdivision of the United
States in which such Person or such Person’s property or assets is located or which exercises valid jurisdiction over any
such Person or such Person’s property or assets, and any court, agency, department, commission, board, bureau or instrumentality
of any of them and any monetary authority that exercises valid jurisdiction over any such Person or such Person’s property
or assets. Unless otherwise specified, all references to Governmental Authority herein with respect to Triangle means a Governmental
Authority having jurisdiction over the Triangle Entities or any of their respective properties or assets.

 

“Hazardous
Material” means any substance regulated by or as to which liability arises under any applicable Environmental Law including
any: (i) chemical, product, material, substance or waste defined as “hazardous substance,” “hazardous material,”
“hazardous waste,” “restricted hazardous waste,” “extremely hazardous waste,” “solid
waste,” “toxic waste,” “extremely hazardous substance,” “toxic substance,” “toxic
pollutant,” “contaminant,” “pollutant,” or words of similar meaning or import found in any applicable
Environmental Law; (ii) petroleum hydrocarbons, petrochemical or petroleum products, petroleum substances, natural gas and
crude oil or any components, fractions or derivatives thereof; and (iii) asbestos containing materials, polychlorinated biphenyls,
urea formaldehyde foam insulation, or radon gas.

 

“HSR Act”
shall have the meaning specified in Section 3.07.

 

“Indemnified
Party” shall have the meaning specified in Section 6.03(b).

 

“Indemnifying
Party” shall have the meaning specified in Section 6.03(b).

 

“Investment
Agreement” shall have the meaning specified in the recitals to this Agreement.

 

“Knowledge”
means, with respect to Triangle, the actual knowledge of Jonathan Samuels, Joseph Feiten or Justin Bliffen.

 

    	3

    	 

    

 

“Law”
means any applicable federal, state or local order, writ, injunction, judgment, settlement, award, decree, statute, law (including
common law), rule or regulation.

 

“Lien”
means any lien, pledge, condemnation award, claim, restriction, easement, covenant, exception to title, charge, preferential purchase
right, equity, security interest, exclusive license, mortgage, deed of trust, hypothecation or encumbrance of any nature whatsoever
including as a statutory landlord lien.

 

“Money Laundering
Laws” shall have the meaning specified in Section 3.22(b).

 

“Nevada Corporations
Code” shall mean Title 7, Chapter 78 of the Nevada Revised Statutes and the provisions of Chapter 92A of the Nevada Revised
Statutes applicable to corporations.

 

“NYSE MKT”
means NYSE MKT LLC.

 

“Organizational
Documents” means, with respect to a particular Person (other than a natural person), the certificate or articles of incorporation,
certificate or articles of organization, certificate of formation, bylaws, limited liability company agreement, limited partnership
agreement, operating agreement or similar organizational document or agreement, as applicable, of such Person.

 

“Permits”
shall have the meaning specified in Section 3.21.

 

“Person”
means any individual, corporation, company, voluntary association, partnership, joint venture, trust, limited liability company,
unincorporated organization, Governmental Authority or any agency, instrumentality or political subdivision thereof or any other
form of entity.

 

“Plan”
shall have the meaning specified in Section 3.18(b).

 

“Proposal”
shall have the meaning specified in Section 5.01(a).

 

“Proxy Statement”
shall have the meaning specified in Section 5.01(b).

 

“Purchase
Price” means $120,000,000.

 

“Purchaser”
has the meaning set forth in the introductory paragraph of this Agreement.

 

“Purchaser
Related Parties” shall have the meaning specified in Section 6.01.

 

“Registration
Rights Agreement” shall have the meaning specified in the recitals to this Agreement.

 

“Representatives”
means, with respect to a specified Person, the officers, directors, managers, employees, agents, counsel, accountants, investment
bankers, and other representatives of such Person and, when used with respect to the Purchaser, also includes the Purchaser’s
direct and indirect stockholders, partners, members, subsidiaries, parent companies and other Affiliates.

 

    	4

    	 

    

 

“Ryder Scott”
shall have the meaning specified in Section 3.15(a).

 

“Securities
Act” shall have the meaning specified in the recitals to this Agreement.

 

“Solvent”
shall have the meaning specified in Section 3.13.

 

“Stockholder
Approval” shall have the meaning specified in Section 5.01(a).

 

“Stockholders”
means holders of Common Stock.

 

“Stockholders
Meeting” shall have the meaning specified in Section 5.01(a).

 

“Subsidiary”
means, as to any Person, any corporation or other entity of which: (i) such Person, or a Subsidiary of such Person, is a general
partner or manager; (ii) at least a majority of the outstanding equity interest having by the terms thereof ordinary voting
power to elect a majority of the board of directors or similar governing body of such corporation or other entity (irrespective
of whether or not at the time any equity interest of any other class or classes of such corporation or other entity shall have
or might have ordinary voting power by reason of the happening of any contingency) is at the time directly or indirectly owned
or controlled by such Person or one or more of its Subsidiaries; or (iii) any corporation or other entity as to which such
Person consolidates for accounting purposes.

 

“Subsidiary
Organizational Documents” means the Organizational Documents of the Triangle Subsidiaries.

 

“Taxes”
shall have the meaning specified in Section 3.19(b).

 

“Tax Return”
shall have the meaning specified in Section 3.19(b).

 

“Third Party
Claim” shall have the meaning specified in Section 6.03(b).

 

“Transaction
Documents” means, collectively, this Agreement, the Convertible Note, the Registration Rights Agreement and the Investment
Agreement.

 

“Triangle”
has the meaning set forth in the introductory paragraph of this Agreement.

 

“Triangle
Credit Agreement” shall have the meaning specified in Section 3.02.

 

“Triangle
Entities” means the entities listed on Schedule I to this Agreement.

 

“Triangle
Financial Statements” shall have the meaning specified in Section 3.10(a).

 

“Triangle
Material Adverse Effect” means any event, circumstance or condition that has a material and adverse effect on (i) the
assets, liabilities, condition (financial or other), business, results of operations, affairs or prospects of the Triangle Entities
taken as a whole; or (ii) the ability of Triangle to consummate the transactions under any Transaction Document to which it
is a party.

 

    	5

    	 

    

 

“Triangle
Organizational Documents” means the Organizational Documents of Triangle.

 

“Triangle
Related Parties” shall have the meaning specified in Section 6.02.

 

“Triangle
SEC Disclosure” shall mean the disclosure included in the Triangle SEC Documents, but excluding any risk factor disclosure
contained in any such Triangle SEC Document under the heading “Risk Factors” or “Cautionary Note Regarding Forward-Looking
Statements” or similar heading and excluding any information set forth in any exhibit thereto.

 

“Triangle
SEC Documents” shall have the meaning specified in Section 3.10(a).

 

“Triangle
Subsidiaries” means the entities designated as “Triangle Subsidiaries” on Schedule I to this Agreement.

 

Section
1.02      Accounting Procedures and Interpretation. Unless otherwise
specified in this Agreement, all accounting terms used herein shall be interpreted, all determinations with respect to accounting
matters under this Agreement shall be made, and all financial statements and certificates and reports as to financial matters
required to be furnished to the Purchaser under this Agreement shall be prepared, in accordance with GAAP applied on a consistent
basis during the periods involved and in compliance as to form in all material respects with applicable accounting requirements
and with the published rules and regulations of the Commission with respect thereto.

 

ARTICLE
II

AGREEMENT TO SELL AND PURCHASE

 

Section
2.01     Sale and Purchase. Pursuant to the terms of this Agreement, at the Closing: (i) Triangle
hereby agrees to issue and sell to the Purchaser, and the Purchaser hereby agrees to purchase from Triangle, the Convertible Note;
and (ii) as consideration for the issuance and sale of the Convertible Note to the Purchaser, the Purchaser hereby agrees
to pay Triangle the Purchase Price.

 

Section
2.02     Closing. Pursuant to the terms of this Agreement, the consummation of the purchase
and sale of the Convertible Note hereunder (the “Closing”) is taking place concurrently with the execution
and delivery of this Agreement. The Closing under this Agreement shall take place at the offices of Skadden, Arps, Slate, Meagher
& Flom LLP, 1000 Louisiana, Suite 6800, Houston, Texas 77002. The parties agree that the Closing may occur via delivery of
facsimiles or photocopies (via actual delivery or electronically via electronic mail) of the Transaction Documents and the closing
deliverables contemplated by the Transaction Documents; provided, however, that the parties shall prepare, and the Purchaser shall
hold, only one original of the Convertible Note. Unless otherwise provided herein, all proceedings to be taken and all documents
to be executed and delivered by all parties at the Closing will be deemed to have been taken and executed simultaneously, and
no proceedings will be deemed to have been taken nor documents executed or delivered until all have been taken.

 

    	6

    	 

    

 

Section
2.03       Triangle Closing Deliverables. Upon the terms and subject to the conditions of
this Agreement, at the Closing, Triangle is delivering (or causing to be delivered) the following:

 

(a)          the
Convertible Note, which shall have been duly executed by Triangle;

 

(b)          a
certificate of the Secretary or Assistant Secretary of Triangle, dated as of the date hereof, certifying as to and attaching: (i)
the Bylaws of Triangle, as amended, (ii) the resolutions of the Board authorizing the Transaction Documents and the transactions
contemplated thereby, including the issuance of the Convertible Note and (iii) the incumbency of the officers executing the
Transaction Documents;

 

(c)          copies
of the Articles of Incorporation, Certificate of Formation or Certificate of Incorporation, as the case may be, and all amendments
thereto, of each of the Triangle Entities, certified by the Secretary of State (or corresponding governmental official) of its
jurisdiction of formation and dated as of a recent date;

 

(d)          certificates,
dated as of a recent date, from the Secretary of State (or corresponding governmental official) of the jurisdiction of formation
of each of the Triangle Entities evidencing that such Triangle Entity is in good standing in such jurisdiction;

 

(e)          certificates,
dated as of a recent date, of the Secretary of State (or corresponding governmental official) of each of the jurisdictions listed
under “Foreign Qualifications” on Schedule I to this Agreement evidencing the qualification and good standing
in such jurisdiction of each of the Triangle Entities as a foreign limited liability company or foreign corporation, as the case
may be;

 

(f)          the
cross-receipt executed by Triangle and delivered to the Purchaser certifying that it has received the Purchase Price;

 

(g)          the
Registration Rights Agreement, which shall have been duly executed by Triangle;

 

(h)          the
Investment Agreement, which shall have been duly executed by Triangle;

 

(i)          a
written opinion of outside counsel for Triangle in substantially the form attached hereto as Exhibit D; and

 

(j)          all
other documents, instruments and writings required to be delivered by Triangle at the Closing under the Transaction Documents.

 

    	7

    	 

    

 

Section
2.04        Purchaser Closing Deliverables. Upon the terms and subject to the conditions of
this Agreement, at the Closing, Purchaser is delivering (or causing to be delivered) the following:

 

(a)          the
Purchase Price, in immediately available U.S. funds via wire transfer to an account designated by Triangle;

 

(b)          the
Registration Rights Agreement, which shall have been duly executed by the Purchaser;

 

(c)          the
Investment Agreement, which shall have been duly executed by the Purchaser and NGP Parent (as defined in the Investment Agreement);

 

(d)          a
cross-receipt executed by the Purchaser and delivered to Triangle certifying that it has received the Convertible Note; and

 

(e)          all
other documents, instruments and writings required to be delivered by the Purchaser at the Closing under the Transaction Documents.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF TRIANGLE

 

Except as otherwise
disclosed in any Triangle SEC Disclosure contained in the Triangle SEC Documents furnished or filed with the Commission after January
31, 2012 and prior to the date hereof, and except as set forth in the Schedules, which Schedules shall be deemed a part hereof
(it being understood that (i) the matters disclosed for the purpose of one section or subsection of the Schedules shall constitute
disclosure of such matters for the purposes of other sections or subsections hereof to the extent that such relevance to such other
sections or subsections is reasonably apparent (ii) the duplication or cross-referencing of any disclosures made in the Schedules
shall not, in any instance or in the aggregate, effect a waiver of the foregoing statement and (iii) the inclusion of an item in
the Schedules shall not be deemed to be an admission of the materiality thereof), Triangle represents and warrants to the Purchaser,
on and as of the date of this Agreement, as follows:

 

Section
3.01         Formation and Qualification. Each of the Triangle Entities has been duly formed
and is validly existing in good standing under the Laws of its jurisdiction of formation, and is duly registered or qualified
to do business and is in good standing as a foreign corporation, limited liability company, limited partnership or general partnership,
as the case may be, in each jurisdiction in which its ownership or lease of property or the conduct of its businesses requires
such registration or qualification, except where the failure to so register or qualify would not, individually or in the aggregate,
be reasonably likely to have a Triangle Material Adverse Effect. Each of the Triangle Entities has all corporate or limited liability
company, as the case may be, power and authority necessary to own or lease its properties and assets currently owned or leased
and to conduct its business as currently conducted, except where the failure to have such power or authority would not, individually
or in the aggregate, be reasonably likely to have a Triangle Material Adverse Effect. None of the Triangle Entities is in violation
of its applicable Organizational Documents.

 

    	8

    	 

    

 

Section
3.02         Ownership of Subsidiaries. Except as described on Schedule 3.02, Triangle
directly or indirectly owns 100% of the issued and outstanding capital stock or membership interests, as the case may be, of the
Triangle Subsidiaries free and clear of all Liens except for Liens created pursuant to the Credit Agreement dated as of April
12, 2012 among Triangle USA Petroleum Corporation, as the borrower, Wells Fargo Bank, National Association, as administrative
agent, issuing lender, arranger and sole bookrunner, and the other lenders party thereto (the “Triangle Credit Agreement”).
Such capital stock or limited liability company interests, as the case may be, of the Triangle Subsidiaries have been duly authorized
and validly issued and, with respect to any capital stock, are fully paid and non-assessable.

 

Section
3.03         No Other Subsidiaries. Other than its ownership interests in the Triangle Subsidiaries,
Triangle does not own, directly or indirectly, any equity or long-term debt securities of any other Person.

 

Section
3.04         Authorization; Enforceability; Valid Issuance.

 

(a)          Triangle
has all requisite corporate power and authority and has taken all requisite corporate action necessary for (i) the authorization,
execution and delivery of the Transaction Documents, (ii) the authorization of the performance of all obligations of Triangle under
the Transaction Documents, and (iii) the authorization, issuance (or reservation for issuance) and delivery of the Convertible
Note and the Conversion Shares in accordance with and upon the terms and conditions set forth in the Transaction Documents, subject
to the approval of the Proposal (as defined below). The Transaction Documents have been duly authorized and validly executed and
delivered by Triangle, and assuming due authorization, execution and delivery by the Purchaser, the Transaction Documents will
constitute valid and binding obligations of Triangle enforceable against Triangle in accordance with their terms; provided,
that the enforceability thereof may be limited by (i) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar Laws relating to or affecting creditors’ rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at Law) and (ii) public policy, applicable Law relating
to fiduciary duties and indemnification and contribution and an implied covenant of good faith and fair dealing.

 

(b)          Upon
issuance in accordance with the Convertible Note, the Conversion Shares will be duly authorized, validly issued, fully paid and
non-assessable and will be free of any and all Liens, other than (i) restrictions on transfer under applicable state and federal
securities Laws and the Transaction Documents and (ii) such Liens as are created by or related to the Purchaser. Triangle has reserved
and made available out of its authorized but unissued shares of Common Stock a sufficient number of shares of Common Stock for
issuance upon conversion of the Convertible Note (based on the Outstanding Balance (as defined in the Convertible Note) as of the
date hereof) in accordance with its terms, and such shares of Common Stock are free and clear of all Liens, other than (i) restrictions
on transfer under applicable state and federal securities Laws and the Transaction Documents and (ii) such Liens as are created
by or related to the Purchaser.

 

    	9

    	 

    

 

Section
3.05         Capitalization; No Preemptive Rights, Registration Rights or Options.

 

(a)          Schedule
3.05(a) sets forth, as of the date hereof, (a) the authorized capital stock of Triangle, (b) the number of shares of capital
stock of Triangle issued and outstanding, (c) the number of shares of capital stock issuable pursuant to Triangle’s employee
benefits or other compensation plans, and (d) the number of shares of capital stock of Triangle issuable or reserved for issuance
pursuant to warrants, options, convertible securities or other rights (other than the Convertible Note) exercisable for, or convertible
into or exchangeable for any shares of capital stock of Triangle. All of the issued and outstanding shares of Triangle’s
capital stock have been duly authorized and validly issued and are fully paid and non-assessable, and none of the outstanding shares
of capital stock of Triangle were issued in violation of the preemptive or similar rights of any security holder of Triangle or
in violation of any applicable state or federal securities Laws. No indebtedness having the right to vote (or convertible into
or exchangeable for securities having the right to vote) on any matters on which Stockholders have the right to vote are issued
or outstanding.

 

(b)          Except
as contemplated by the Transaction Documents, no Person is entitled to preemptive or similar rights with respect to any securities
of any of the Triangle Entities. Except as described on Schedule 3.05(b) or as contemplated by the Transaction Documents,
there are no outstanding warrants, options, convertible securities or other rights, agreements or arrangements of any character
under which any of the Triangle Entities is or may be obligated to issue any equity securities of any kind. Except as contemplated
by the Transaction Documents, there are no voting agreements, buy-sell agreements, option or right of first purchase agreements
or other agreements of any kind among any of the Triangle Entities and any of the security holders of any of the Triangle Entities
relating to the securities of the Triangle Entities held by them. Except as provided in the Registration Rights Agreement, no Person
has the right to require any of the Triangle Entities to register any securities of any of the Triangle Entities under the Securities
Act, whether on a demand basis or in connection with the registration of securities of any of the Triangle Entities for their own
account or for the account of any other Person.

 

(c)          The
issuance and sale of the Convertible Note and the conversion thereof into Conversion Shares pursuant to the terms of the Convertible
Note will not obligate any of the Triangle Entities to issue shares of capital stock or other securities to any other Person and
will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security. Triangle does
not have outstanding shareholder purchase rights, a “poison pill” or any similar arrangement.

 

    	10

    	 

    

 

Section
3.06        No Breach. None of the execution, delivery and performance of the Transaction Documents
by Triangle or the consummation of the transactions contemplated by the Transaction Documents (including the issuance and sale
of the Convertible Note pursuant to this Agreement and the issuance of the Conversion Shares upon conversion of the Convertible
Note) (i) conflicts or will conflict with or constitutes or will constitute a violation of any of the provisions of the Triangle
Organizational Documents or the Subsidiary Organizational Documents, (ii) requires any consent, approval or notice under
or results in a breach or violation of, or constitutes a default (or an event which, with notice or lapse of time or both, would
constitute such a default) under, any of the terms and provisions of any Contract to which any of the Triangle Entities is a party
or by which any of them or any of their respective properties or assets may be bound, (iii) violates or will violate any
Law of any Governmental Authority or (iv) results or will result in the creation or imposition of any Lien upon any property
or assets of any of the Triangle Entities; except in the cases of clauses (ii) - (iv), where such conflicts, breaches, violations
or Liens would not, individually or in the aggregate, be reasonably likely to have a Triangle Material Adverse Effect.

 

Section
3.07       No Approvals. Except for (i) the approvals required by the Commission in
connection with any registration statement filed under the Registration Rights Agreement and (ii) filings as may be required
to be made under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and
the expiration of any waiting period relating thereto prior to conversion of the Convertible Note into Conversion Shares, no consent,
approval, authorization or order of, or filing or registration with, any Governmental Authority is required in connection with
the execution, delivery and performance by Triangle of each of the Transaction Documents or the consummation by Triangle of the
transactions contemplated by the Transaction Documents, including the sale of the Convertible Note pursuant to this Agreement
and the issuance of the Conversion Shares upon conversion of the Convertible Note.

 

Section
3.08         Compliance with Laws and Agreements.

 

(a)          Except
as described on Schedule 3.08, each of the Triangle Entities is in compliance (i) with all terms, covenants and conditions
contained in any Contract to which it is a party or by which it is bound or to which any of its properties or assets is subject
and (ii) with all Laws of any Governmental Authority applicable to its business, operations, properties or assets, except
in each case where the failure to be in compliance would not, individually or in the aggregate, be reasonably likely to have a
Triangle Material Adverse Effect. None of the Triangle Entities has received written notice of any material violation of any Law.

 

(b)          To
the Knowledge of the Triangle Entities, all third parties to any Contract to which any of the Triangle Entities is a party or by
which any of them is bound or to which any of their properties or assets is subject are in compliance with all terms, covenants
and conditions contained in each such Contract, except where the failure to be in compliance would not, individually or in the
aggregate, be reasonably likely to have a Triangle Material Adverse Effect.

 

Section
3.09       Corporate Records. The minute books of each of the Triangle Entities have been
made available to the Purchaser, and such books (i) reflect all meetings and actions of the board of directors (including each
board committee) and stockholders (or analogous governing bodies or interest holders) of each of the Triangle Entities since the
time of its respective organization through the date of the latest meeting and action, and (ii) accurately in all material respects
reflect all transactions referred to in such minutes.

 

    	11

    	 

    

 

Section
3.10        Triangle SEC Documents; Triangle Financial Statements.

 

(a)          Triangle
has timely filed or furnished with the Commission all reports, schedules, forms, statements and other documents (including exhibits
and other information incorporated therein) required to be filed or furnished by it under the Exchange Act or the Securities Act
since February 1, 2010 (all such documents, collectively, the “Triangle SEC Documents”). The Triangle SEC Documents,
including any audited or unaudited financial statements and any notes thereto or schedules included therein (the “Triangle
Financial Statements”), at the time filed or furnished (except to the extent corrected by a subsequently filed or furnished
Triangle SEC Document filed or furnished prior to the date hereof) (i) did not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein (in the
light of the circumstances under which they were made) not misleading, (ii) complied in all material respects with the applicable
requirements of the Exchange Act and the Securities Act, as applicable, (iii) complied as to form in all material respects
with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, (iv) in
the case of the Triangle Financial Statements, were prepared in accordance with GAAP applied on a consistent basis during the periods
involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q
of the Commission), and (v) in the case of the Triangle Financial Statements, fairly present the financial condition, results
of operations and cash flows of Triangle and its Subsidiaries as of the dates and for the periods indicated.

 

(b)          KPMG
LLP, who have audited and reviewed certain Triangle Financial Statements and audited the effectiveness of Triangle’s internal
control over financial reporting and, expressed an unqualified opinion on management’s assessment thereof, are (i) independent
public accountants as required by the Securities Act and (ii) in compliance with the applicable requirements relating to the qualification
of accountants under Rule 2-01 of Regulation S-X. KPMG LLP is a registered public accounting firm as defined by the Public Company
Accounting Oversight Board. Except as described on Schedule 3.10, since February 1, 2010, (i) Triangle has not been advised
of (A) any significant deficiency or material weakness in the design or operation of internal controls that could adversely affect
Triangle’s internal controls or (B) any fraud, whether or not material, that involves management or other employees who have
a significant role in Triangle’s internal controls, and (ii) there have been no changes in internal controls or in other
factors that could materially affect internal controls, including any corrective actions with regard to any significant deficiency
or material weakness.

 

(c)          Triangle
has provided to the Purchaser copies of all issued auditors’ reports received since February 1, 2010, in each case to the
extent relating to the business of the Triangle Entities and the operation thereof. Except as described on Schedule 3.10,
since February 1, 2010, Triangle has not received any letters to management regarding accounting practices and systems of internal
controls. Since February 1, 2010, none of the Triangle Entities nor, to Triangle’s Knowledge, any director, officer, employee,
auditor, accountant or representative of any of the Triangle Entities has received any complaint, allegation, assertion or claim,
in each case of a material nature, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies
or methods of the Triangle Entities or their respective internal accounting controls, including any such complaint, allegation,
assertion or claim that any Triangle Entity has engaged in questionable accounting or auditing practices.

 

    	12

    	 

    

 

Section
3.11         Books and Records; Sarbanes-Oxley Compliance.

 

(a)          Each
of the Triangle Entities (i) makes and keeps accurate books and records and (ii) maintains and has maintained effective internal
control over financial reporting (as defined in Rule 13a-15 under the Exchange Act) and a system of internal accounting controls
sufficient to provide reasonable assurance that (A) transactions are executed in accordance with management’s general or
specific authorizations, (B) transactions are recorded as necessary to permit preparation of Triangle's consolidated financial
statements in conformity with GAAP and to maintain accountability for its assets, (C) access to the Triangle Entities’ assets
is permitted only in accordance with management’s general or specific authorization and (D) the recorded accountability for
the Triangle Entities’ assets is compared with existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. Triangle is not aware of any failures of such internal accounting controls that are material or that
would be required to be disclosed pursuant to any applicable Law.

 

(b)          Triangle
has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act),
such disclosure controls and procedures are designed to ensure that the information required to be disclosed by Triangle in the
reports it files or submits under the Exchange Act is accumulated and communicated to management of Triangle, including its principal
executive officers and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure to
be made and such disclosure controls and procedures are effective in alerting Triangle in a timely manner to material information
required to be disclosed in Triangle’s reports filed with the Commission.

 

(c)          To
the Knowledge of Triangle, there is and has been no failure on the part of Triangle or any of Triangle’s directors or officers,
in their capacities as such, to comply in all material respects with the provisions of the Sarbanes-Oxley Act of 2002 and the rules
and regulations promulgated in connection therewith.

 

Section
3.12       No Material Adverse Change. Except as described on Schedule 3.12, since
January 31, 2012, there has not been (i) any change, development, condition, circumstance, occurrence or event that has had
or is reasonably likely to have a Triangle Material Adverse Effect, (ii) any transaction that is material to the Triangle
Entities taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations),
incurred by any of the Triangle Entities that is material to the Triangle Entities taken as a whole, (iv) any change in the
capital stock, membership or other equity interests or outstanding indebtedness of any of the Triangle Entities that is material
to the Triangle Entities taken as a whole, (v) any dividend or distribution of any kind declared, paid or made on the capital
stock of Triangle or (vi) any material change in Triangle’s accounting or tax principles, practices or methods.

 

    	13

    	 

    

 

Section
3.13         Solvency. Immediately after the consummation of the issuance and sale of the Convertible
Note in accordance with the terms of this Agreement, Triangle will be Solvent. As used in this paragraph, the term “Solvent”
means, with respect to a particular date, that on such date (i) the present fair market value (or present fair saleable value)
of the assets of the Triangle Entities are not less than the total amount required to pay the probable liabilities of Triangle
on its total existing debts and liabilities (including contingent liabilities) as they become absolute and matured, (ii) the
Triangle Entities are able to realize upon their assets and pay their debts and other liabilities, contingent obligations and
commitments as they mature and become due in the normal course of business, (iii) assuming the sale of the Convertible Note as
contemplated by this Agreement, the Triangle Entities have not incurred debts or liabilities beyond their ability to pay as such
debts and liabilities mature, (iv) the Triangle Entities are not engaged in any business or transaction, and are not about
to engage in any business or transaction, for which their property would constitute unreasonably small capital after giving due
consideration to the prevailing practice in the industry in which the Triangle Entities are engaged, and (v) the Triangle Entities
are not a defendant in any civil action that could result in a judgment that the Triangle Entities are or would become unable
to satisfy. In computing the amount of such contingent liabilities at any time, it is intended that such liabilities will be computed
at the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

 

Section
3.14        Title to Property.

 

(a)          Except
as described on Schedule 3.14, other than to the extent such would not, individually or in the aggregate, reasonably be
expected to have a Triangle Material Adverse Effect, each of the Triangle Entities has good and marketable title to all real property
(other than oil and gas properties) and personal property owned by them and valid, legal and defensible title to the interests
in oil and gas properties underlying the estimates of the Triangle Entities’ proved reserves set forth in Triangle’s
most recently-filed Form 10-K, as amended, in each case free and clear of all Liens except (i) Liens arising under or securing
indebtedness incurred under the Triangle Credit Agreement or (ii) Liens that do not materially affect the value of such properties
taken as a whole.

 

(b)          Other
than to the extent such would not, individually or in the aggregate, reasonably be expected to have a Triangle Material Adverse
Effect, all real property and buildings held under lease by the Triangle Entities are held by them under valid, subsisting and
enforceable leases, and the working interests derived from oil, gas and mineral leases or mineral interests held or leased by the
Triangle Entities give the Triangle Entities the right to explore, develop and produce hydrocarbons from such properties consistent
with standard industry practices. The care taken by the Triangle Entities with respect to acquiring or otherwise procuring such
leases or mineral interests was generally consistent with standard industry practices in the areas in which the Triangle Entities
operate for acquiring or procuring leases and mineral interests therein to explore, develop and produce hydrocarbons. No real property
(including oil, gas and mineral leases and mineral interests) owned, leased, licensed or used by the Triangle Entities lies in
an area which is, or to the Knowledge of the Triangle Entities will be, subject to restrictions which would prohibit, and no statements
of facts relating to the actions or inaction of another Person or its ownership, leasing, licensing, or use of any real or personal
property (including oil, gas and mineral leases and mineral interests) exists or will exist which would prevent, the continued
effective ownership, leasing, licensing, exploration, development or production or use of such property in the business of the
Triangle Entities as presently conducted or as the Triangle SEC Documents indicate they contemplate conducting.

 

    	14

    	 

    

 

(c)          As
of the date hereof, (i) all royalties, rentals, deposits and other amounts owed under the oil and gas leases constituting
the oil and gas properties of the Triangle Entities have been properly and timely paid (other than amounts held in suspense accounts
pending routine payments or related to disputes about the proper identification of royalty owners), and no material amount of proceeds
from the sale or production attributable to the oil and gas properties of the Triangle Entities are currently being held in suspense
by any purchaser thereof, and (ii) there are no claims under take-or-pay contracts pursuant to which natural gas purchasers
have any make-up rights affecting the interests of the Triangle Entities in their oil and gas properties, except in each case where
such failure to pay or claim would not, individually or in the aggregate, be reasonably likely to have a Triangle Material Adverse
Effect.

 

Section
3.15        Reserve Engineers; Reserve Estimates.

 

(a)          Ryder
Scott Company, L.P. (“Ryder Scott”), who issued a report with respect to the Triangle Entities’ oil and
natural gas reserves at January 31, 2012, has represented to Triangle that it is, and to the Knowledge of Triangle is, an independent
petroleum engineer with respect to Triangle.

 

(b)          The
oil and gas reserve estimates of the Triangle Entities included in Triangle’s most recently-filed Form 10-K, as amended,
have been prepared by independent reserve engineers in accordance with Commission guidelines applied on a consistent basis throughout
the periods involved, and Triangle has no reason to believe that such estimates do not fairly reflect the oil and gas reserves
of the Triangle Entities as of the dates indicated. Other than normal production of the reserves and intervening market commodity
price fluctuations, and except as described in Triangle’s most recently-filed Form 10-K, as amended, Triangle is not aware
of any facts or circumstances that would result in a material adverse change in the aggregate net reserves, or the aggregate present
value of future net cash flows therefrom, as described in Triangle’s most recently-filed Form 10-K, as amended.

 

Section
3.16       Insurance. The Triangle Entities are insured by insurers in such amounts as Triangle
believes are adequate for the conduct of their business and as Triangle believes are customary for the business in which they
are engaged. All such policies of insurance insuring the Triangle Entities are in full force and effect and the Triangle Entities
have no reason to believe that any of them will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business. There are no material
claims by any of the Triangle Entities under any such policy or instrument as to which any insurance company is denying liability
or defending under a reservation of rights clause.

 

Section
3.17      Litigation. Except as described on Schedule 3.17, there are no actions, suits,
claims, investigations or proceedings pending or, to the Knowledge of Triangle, threatened, to which any of the Triangle Entities
is or would be a party or of which any of their respective properties or assets is or would be subject at Law or in equity, before
or by any Governmental Authority, or before or by any self-regulatory organization or other non-governmental regulatory authority
(including NYSE MKT), which are reasonably likely to, individually or in the aggregate, have a Triangle Material Adverse Effect.

 

    	15

    	 

    

 

Section
3.18        Labor, Employment and Benefit Matters.

 

(a)          None
of the Triangle Entities have agreed to recognize any union or other collective bargaining representative, and no union or other
collective bargaining representative has been certified as the exclusive bargaining representative of any of their employees. To
the Knowledge of Triangle, no union organizational campaign or representation petition is currently pending with respect to any
of the employees of the Triangle Entities. None of the Triangle Entities are party to or bound by any collective bargaining agreement
or labor contract or individual agreement applicable to any employees of the Triangle Entities. No collective bargaining agreements
or other labor contract relating to employees of the Triangle Entities are being negotiated. Except for such exceptions as would
not, individually or in the aggregate, reasonably be expected to have a Triangle Material Adverse Effect, none of the Triangle
Entities are subject to any consent decree with any Governmental Authority or arbitrator relating to claims of unfair labor practices,
employment discrimination, or other claims with respect to employment and labor practices and policies, and no Government Authority
or arbitrator has issued a judgment, order, decree, injunction, decision, award or finding with respect to the employment and labor
practices or policies of the Triangle Entities. No labor dispute with the employees of the Triangle Entities exists or, to the
Knowledge of Triangle, is imminent, and Triangle is not aware of any existing or imminent labor disturbance by the employees of
any of the Triangle Entities’ principal operators, contractors, suppliers or customers, which, in any such case would, individually
or in the aggregate, reasonably be likely to have a Triangle Material Adverse Effect. To the Knowledge of Triangle, no executive
officer of Triangle presently plans to terminate his or her employment.

 

(b)          Each
Plan has been established, administered and operated in compliance with its terms and all applicable Laws, including without limitation
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the Internal Revenue Code of
1986, as amended (the “Code”), except where the failure to so comply would not, individually or in the aggregate,
be reasonably likely to have a Triangle Material Adverse Effect. Each Plan intended to be qualified under section 401(a) of the
Code (i) is maintained pursuant to a prototype document approved by the Internal Revenue Service, for which a separate determination
letter is not required, or has received a favorable determination letter from the Internal Revenue Service regarding such qualified
status, and (ii) has not been operated in a way that would reasonably be expected to adversely affect its qualified status. No
Plan is, and none of Triangle, the Triangle Subsidiaries or any ERISA Affiliate has any liability with respect to, a multiemployer
plan (within the meaning of section 3(37) of ERISA) or a plan subject to Title IV of ERISA, Section 302 of ERISA or Section
412 of the Code. No Plan provides or promises to provide retiree medical, dental or life insurance benefits to any current or former
employee of Triangle or any Triangle Subsidiary (except to the extent required pursuant to Section 4980B(f) of the Code and the
corresponding provisions of ERISA). As used herein: (1) the term “Plan” means each of the following that is
sponsored, maintained or contributed to by Triangle, any Triangle Subsidiary or any ERISA Affiliate, or with respect to which any
of such entities could have any liability: (A) each “employee benefit plan,” as such term is defined in section 3(3)
of ERISA (including employee benefit plans, such as foreign plans, which are not subject to the provisions of ERISA); and (B) each
bonus, equity ownership, equity option, phantom equity, deferred compensation, incentive compensation, vacation, holiday, sick
leave, and each other employee benefit plan, agreement, program, practice or understanding which is not described in clause (A);
and (2) the term “ERISA Affiliate” means any entity, trade or business that is a member of a group described
in Section 414(b), (c), (m) or (o) of the Code or Section 4001(b)(l) of ERISA that includes Triangle or any Triangle Subsidiary,
or that is a member of the same “controlled group” as Triangle or any Triangle Subsidiary pursuant to Section 4001(a)(14)
of ERISA.

 

    	16

    	 

    

 

(c)          All
employees and former employees of the Triangle Entities have been paid in full all accrued and due wages, salaries, commissions,
bonuses, vacation pay, severance and termination pay, sick pay, and other accrued and due compensation for all services performed
by them up to the date hereof. Except for such exceptions as would not, individually or in the aggregate, reasonably be expected
to have a Triangle Material Adverse Effect, the Triangle Entities have, and have always been since February 1, 2010, in compliance
with all applicable laws and regulations regarding labor and employment practices.

 

Section
3.19        Tax Returns.

 

(a)          (i)
Each of the Triangle Entities has prepared and timely filed all Tax Returns required to be filed by any of them or has requested
extensions thereof and all such filed Tax Returns are complete and accurate, (ii) each of the Triangle Entities has timely paid
all Taxes that are required to be paid by any of them, (iii) there are no audits, examinations, investigations, actions, suits,
claims or other proceedings in respect of Taxes pending or threatened in writing nor has any deficiency for any Tax been assessed
by any Governmental Authority in writing against any Triangle Entity which are reasonably likely to, individually or in the aggregate,
have a Triangle Material Adverse Effect, and (iv) all Taxes required to be withheld by any Triangle Entity have been withheld and
paid over to the appropriate Tax authority (except, in the case of this clause (iv) or clause (i) or (ii) above, with respect to
matters which would not, individually or in the aggregate, be reasonably likely to have a Triangle Material Adverse Effect or which
are contested in good faith and for which adequate reserves have been established on Triangle’s financial statements in accordance
with GAAP). None of the Triangle Entities has entered into any transaction that, as of the date of this Agreement, has been identified
by the Internal Revenue Service in published guidance as a “listed transaction” as defined under Section 1.6011-4(b)(2)
of the Treasury Regulations promulgated under the Code.

 

(b)          As
used in this Agreement, (i) “Taxes” means any and all domestic or foreign, federal, state, local or other taxes
of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto)
imposed by any Governmental Authority, including taxes on or with respect to income, franchises, windfall or other profits, gross
receipts, property, sales, use, capital stock, payroll, employment, unemployment, social security, workers’ compensation
or net worth, and taxes in the nature of excise, withholding, ad valorem or value added, and including any liability in respect
of any items described above as a transferee or successor, pursuant to Section 1.1502-6 of the Treasury Regulations (or any similar
provision of state, local or foreign Law), or as an indemnitor, guarantor, surety or in a similar capacity under any Contract,
and (ii) “Tax Return” means any return, report or similar filing (including the attached schedules) filed or
required to be filed with respect to Taxes (and any amendments thereto), including any information return, claim for refund or
declaration of estimated Taxes.

 

    	17

    	 

    

 

Section
3.20        Environmental Matters. Except as described on Schedule
3.20, the Triangle Entities (i) are, and at all times since February 1, 2010 have been, and to the Knowledge of Triangle
at all times during the five year period preceding the date of this Agreement have been, in compliance in all material respects
with Environmental Law, (ii) have received all Environmental Permits required of them under Environmental Law to conduct
their respective businesses in all material respects as they are currently being conducted, (iii) are in compliance in all
material respects with all terms and conditions of such Environmental Permits, (iv) since February 1, 2010, have not received
any notice from or been the subject to any suit, proceeding, investigation, claim or action by any Governmental Authority or other
third party that would reasonably be expected to result in any material liability to or obligation of the Triangle Entities alleging
or asserting any violation of Environmental Law or any liability under Environmental Law, which notice, suit, proceeding, investigation,
claim or action has not been resolved to the satisfaction of the party giving or asserting it, and (v) to the Knowledge of
the Triangle Entities, have not caused a release into the environment of any Hazardous Material in a manner that would reasonably
be expected to result in any material liability to or obligation of the Triangle Entities. The Triangle Entities have made available
to the Purchaser complete and correct copies of all material environmental reports within the possession of the Triangle Entities
relating to the business and any real estate owned, leased, or operated by the Triangle Entities or any of their predecessors
in interest. The representations and warranties in this Section 3.20 constitute the sole and exclusive representations
of the Triangle Entities with respect to environmental matters.

 

Section
3.21         Permits. Each of the Triangle Entities has such permits, consents, licenses, franchises,
certificates and authorizations of governmental or regulatory authorities (“permits”) as are necessary to own
its properties and assets and to conduct its business in the manner described in the Triangle SEC Documents, except where the
failure to have obtained the same would not, individually or in the aggregate, be reasonably likely to have a Triangle Material
Adverse Effect. Each of the Triangle Entities has fulfilled and performed all its obligations with respect to such permits which
are or will be due to have been fulfilled and performed by the applicable date except where the failure to have so performed would
not, individually or in the aggregate, be reasonably likely to have a Triangle Material Adverse Effect, and no event has occurred
that would prevent the permits from being renewed or reissued or which allows, or after notice or lapse of time would allow, revocation
or termination thereof or results in any impairment of the rights of the holder of any such permit. No actions, suits, claims,
investigations or proceedings are pending or, to the Knowledge of Triangle, are threatened, before or by any Governmental Authority,
relating to the suspension, revocation, termination, impairment or modification of any such permit, which would be reasonably
likely to, individually or in the aggregate, have a Triangle Material Adverse Effect.

 

    	18

    	 

    

 

Section
3.22        Foreign Corrupt Practices Act; Money Laundering.

 

(a)          None
of the Triangle Entities, and, to the Knowledge of Triangle, no director, officer, agent, employee or other person associated with
or acting on behalf of the Triangle Entities, is aware of or has taken any action, directly or indirectly, that would result in
a violation by such persons of the FCPA (as defined below), including, without limitation, making use of the mails or any means
or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the
payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign
political office, in contravention of the FCPA and to the Knowledge of Triangle, the Triangle Entities have conducted their businesses
in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably
expected to continue to ensure, continued compliance therewith. “FCPA” means Foreign Corrupt Practices Act of
1977, as amended, and the rules and regulations thereunder.

 

(b)          The
operations of the Triangle Entities are and have been conducted at all times in compliance with applicable financial recordkeeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes
of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any Governmental Authority (collectively, the “Money Laundering Laws”) and no action,
suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Triangle Entities
with respect to the Money Laundering Laws is pending or, to the Knowledge of Triangle, threatened.

 

Section
3.23        NYSE MKT Listing. The Common Stock is listed on NYSE MKT, and Triangle has not received
any notice of delisting. The issuance and sale of the Convertible Note and the issuance of Conversion Shares in accordance with
the terms of the Transaction Documents does not contravene NYSE MKT rules and regulations.

 

Section
3.24        Related Party Transactions. No relationship, direct or indirect, exists between or among
the Triangle Entities on the one hand, and the directors, officers, stockholders, customers or suppliers of the Triangle Entities,
on the other hand, that is required to be disclosed in the Triangle SEC Documents and is not so described. There are no outstanding
loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness
by the Triangle Entities to or for the benefit of any of the officers or directors of Triangle.

 

Section
3.25        Control Share Acquisition and Business Combinations. Triangle has taken, or will use
reasonable best efforts to undertake, all necessary action to cause Sections 78.378 through 78.3793, inclusive, and Sections 78.411
through 78.444 of the Nevada Corporations Code not to apply to the transactions contemplated by the Transaction Documents.

 

Section
3.26         Investment Company. None of the Triangle Entities is now, and after the issuance
and sale of the Convertible Note will be, an “investment company” or a company “controlled by” an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

    	19

    	 

    

 

Section
3.27        Certain Fees. No fees or commissions are or will be payable by Triangle to brokers,
finders or investment bankers with respect to the sale of the Convertible Note or the consummation of the transactions contemplated
by this Agreement. Triangle agrees that it will indemnify and hold harmless the Purchaser from and against any and all claims,
demands or liabilities for broker’s, finder’s, placement or other similar fees or commissions incurred by Triangle
or alleged to have been incurred by Triangle in connection with the sale of the Convertible Note or the consummation of the transactions
contemplated by the Transaction Documents.

 

Section
3.28        Form S-3 Eligibility. As of the date of this Agreement, Triangle is eligible to
register the resale of the Conversion Shares for resale by the Purchaser under Form S-3 promulgated under the Securities
Act.

 

Section
3.29        Required Stockholder Vote. The majority of the total votes cast by the Stockholders
(with the exception of the Conversion Shares, which are not entitled to vote according to the rules of NYSE MKT) is the only approval
required to approve the Proposal.

 

Section
3.30        Private Placement. Assuming the accuracy of the representations and warranties set forth
in Article IV, the offer and sale of the Convertible Note to the Purchaser as contemplated herein is exempt from the registration
requirements of the Securities Act.

 

Section
3.31        Other Regulatory Compliance. None of the transactions contemplated by the Transaction
Documents will violate or result in a violation of Section 7 of the Exchange Act, or any regulation promulgated thereunder,
including Regulations T, U and X of the Board of Governors of the Federal Reserve System.

 

ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby
represents and warrants to Triangle with respect to itself, on and as of the date of this Agreement, as follows:

 

Section
4.01         Existence. The Purchaser has been duly formed and is validly existing in good
standing under the Laws of the State of Delaware.

 

Section
4.02         Authorization; Enforceability. The Purchaser has all requisite limited liability
company power and authority and has taken all requisite action necessary for (i) the authorization, execution and delivery of
the Transaction Documents and (ii) the authorization of the performance of all obligations of the Purchaser under the Transaction
Documents. The Transaction Documents have been duly authorized and validly executed and delivered by the Purchaser, and assuming
due authorization, execution and delivery by Triangle, the Transaction Documents will constitute valid and binding obligations
of the Purchaser enforceable against the Purchase in accordance with their terms; provided, that the enforceability thereof
may be limited by (i) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws relating to
or affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at Law) and (ii) public policy, applicable Law relating to fiduciary duties and
indemnification and contribution and an implied covenant of good faith and fair dealing.

 

    	20

    	 

    

 

Section
4.03        No Breach. None of the execution, delivery and performance of the Transaction Documents
by the Purchaser and the consummation of the transactions contemplated by the Transaction Documents (i) conflicts or will
conflict or constitutes or will constitute a violation of the provisions of the Organizational Documents of the Purchaser (ii) results
or will result in a breach or violation of any of the terms or provisions of, or constitutes or will constitute a default under,
any material agreement to which the Purchaser is a party or by which the Purchaser is bound or to which any of the property or
assets of the Purchaser is subject, or (iii) violates or will violate any Law of any Governmental Authority, except in the
cases of clauses (ii) and (iii) where such breach or violation would not reasonably be expected to have a material adverse effect
on the ability of the Purchaser to consummate the transaction under any Transaction Documents to which it is a party.

 

Section
4.04         Certain Fees.  No fees or commissions are or will be payable by the
Purchaser to brokers, finders or investment bankers with respect to the purchase of the Convertible Note or the consummation
of the transactions contemplated by this Agreement. The Purchaser agrees that it will indemnify and hold harmless Triangle
from and against any and all claims, demands or liabilities for broker’s, finder’s, placement or other similar
fees or commissions incurred by the Purchaser or alleged to have been incurred by the Purchaser in connection with the
purchase of the Convertible Note or the consummation of the transactions contemplated by the Transaction Documents.

 

Section
4.05         Unregistered Securities.

 

(a)          Accredited
Investor Status; Sophisticated Purchaser. The Purchaser is an “accredited investor” within the meaning of Rule 501
of Regulation D under the Securities Act and is able to bear the risk of its investment in the Convertible Note and the Conversion
Shares for an indefinite period. The Purchaser has such knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of the purchase of the Convertible Note and the Conversion Shares.

 

(b)          Information.
The Purchaser or its Representatives have been furnished with materials relating to the business, finances and operations of Triangle
and relating to the offer and sale of the Convertible Note and Conversion Shares that have been requested by the Purchaser. The
Purchaser or its Representatives have been afforded the opportunity to ask questions of Triangle or its Representatives. The Purchaser
understands and acknowledges that its purchase of the Convertible Note and the Conversion Shares involves a high degree of risk
and uncertainty. The Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed
investment decision with respect to its investment in the Convertible Note.

 

    	21

    	 

    

 

(c)          Purchaser
Representation. The Purchaser is purchasing the Convertible Note for its own account and not with a view to distribution in
violation of any securities Laws. The Purchaser understands and acknowledges that there is no public trading market for the Convertible
Note and that none is expected to develop. The Purchaser has been advised and understands and acknowledges that neither the Convertible
Note nor the Conversion Shares have been registered under the Securities Act or under the “blue sky” Laws of any jurisdiction
and may be resold only if registered pursuant to the provisions of the Securities Act (or if eligible, pursuant to the provisions
of Rule 144 promulgated under the Securities Act or pursuant to another available exemption from the registration requirements
of the Securities Act). The Purchaser has been advised of and is aware of the provisions of Rule 144 promulgated under the
Securities Act.

 

(d)         
Legends.

 

(i)          The
Purchaser understands and acknowledges that, until such time as the Convertible Note and the Conversion Shares have been registered
pursuant to the provisions of the Securities Act, or the Convertible Note and the Conversion Shares are eligible for resale pursuant
to Rule 144 promulgated under the Securities Act without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Convertible Note and the Conversion Shares will bear the following restrictive legend:
“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER
SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER AND, IN THE CASE OF A TRANSACTION
EXEMPT FROM REGISTRATION, UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT OR THE ISSUER HAS RECEIVED DOCUMENTATION REASONABLY
SATISFACTORY TO IT (WHICH MAY INCLUDE AN OPINION OF COUNSEL) THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS."

 

(ii)         The
Purchaser understands and acknowledges that the Convertible Note will contain restrictions on transfer as described therein.

 

(e)          Reliance
Upon the Purchaser’s Representations and Warranties. The Purchaser understands and acknowledges that the Convertible
Note is being offered and sold in reliance on a transactional exemption from the registration requirements of federal and state
securities Laws, and that Triangle and Skadden, Arps, Slate, Meagher & Flom LLP, counsel for Triangle, are relying in part
upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Purchaser
set forth in this Agreement in (i) concluding that the issuance and sale of the Convertible Note is a “private offering”
and, as such, is exempt from the registration requirements of the Securities Act, and (ii) determining the applicability of
such exemptions and the suitability of the Purchaser to purchase the Convertible Note.

 

    	22

    	 

    

 

Section
4.06        Limitation on Conversion. Purchaser understands and acknowledges that, unless and until
Triangle obtains Stockholder Approval of the Proposal, the Convertible Note will include certain limitations on a holder’s
ability to convert the Convertible Note into shares of Common Stock.

 

ARTICLE
V

COVENANTS

 

Section
5.01         Stockholder Vote with Respect to Conversion; Listing on NYSE MKT.

 

(a)          Subject
to the limitations contained herein, for so long as the Convertible Note remains outstanding, Triangle shall use its reasonable
best efforts, in accordance with the applicable corporate Law of the State of Nevada (or, in the event Triangle re-incorporates
in any other jurisdiction, the applicable corporate Law of such jurisdiction) and the Triangle Organizational Documents, to obtain
the Stockholder approval required by NYSE MKT (“Stockholder Approval”) to authorize the issuance of all of the
shares of Common Stock issuable upon conversion in full of the Convertible Note (the “Proposal”) including,
as soon as practicable after the date of this Agreement, (i) the Proposal to be considered and voted upon at the next annual
meeting of the Stockholders (the “First Stockholders Meeting”) and holding such annual meeting as soon as reasonably
practicable, but in any event not later than 180 days after the date of this Agreement; and (ii) using its reasonable best
efforts to solicit from the Stockholders proxies in favor of the approval of the Proposal and taking all other action reasonably
necessary or advisable to secure Stockholder Approval of the Proposal. If Triangle does not obtain Stockholder Approval of the
Proposal at the First Stockholders Meeting, Triangle shall include the Proposal to be considered and voted upon at two (or one,
if Stockholder Approval of the Proposal is obtained at the first of such meetings) subsequent annual meetings (each of such meetings
and the First Stockholders Meeting, a “Stockholders Meeting”) of the Stockholders; provided that if requested
by the Purchaser within 90 days of the First Stockholders Meeting, the first of such subsequent Stockholders Meetings shall be
a special meeting of the Stockholders to be held within 180 days after the First Stockholders Meeting. Triangle shall use reasonable
best efforts to hold any such subsequent Stockholders Meeting within 365 days of the preceding annual meeting.

 

    	23

    	 

    

 

(b)          In
connection with each Stockholders Meeting at which the Proposal is to be considered, Triangle will use its reasonable best efforts
to (i) in the case of the First Stockholders Meeting, as promptly as reasonably practicable after the date of this Agreement,
and in the case of each subsequent Stockholders Meeting, a reasonable period of time before the date of such Stockholders Meeting,
prepare and file with the Commission a proxy statement (as it may be amended or supplemented from time to time, a “Proxy
Statement”) that includes consideration of the Proposal (and such other matters as are to be considered by the Stockholders
at such Stockholders Meeting) at the Stockholders Meeting, (ii) respond as promptly as reasonably practicable to any comments
received from the Commission with respect to such filings and provide copies of such comments to the Purchaser promptly upon receipt
and provide copies of proposed responses to the Purchaser as promptly as reasonably practicable prior to filing to allow the Purchaser
the opportunity to provide comments, (iii) as promptly as reasonably practicable, prepare and file any amendments or supplements
necessary to be filed in response to any Commission comments or as otherwise required by applicable Law, (iv) as promptly
as reasonably practicable, distribute or otherwise make available to the Stockholders, in accordance with applicable Law and the
rules of the Commission and NYSE MKT, the Proxy Statement and, as determined by Triangle, all other customary proxy or other materials
for meetings such as a Stockholders Meeting, (v) to the extent required by applicable Laws or rules of the Commission, as
promptly as reasonably practicable, prepare, file and distribute (or otherwise make available) to the Stockholders, in accordance
with applicable Law and the rules of the Commission, any amendment or supplement to the Proxy Statement if any event shall occur
which requires such action at any time prior to the Stockholders Meeting, (vi) retaining a proxy solicitor reasonably acceptable
to the Purchaser to assist with the solicitation of proxies to approve the Proposal, and (vii) otherwise comply in all material
respects with all requirements of Law and rules of the Commission applicable to any Stockholders Meeting. The Purchaser shall cooperate
with Triangle in connection with the preparation of the Proxy Statement and any amendments or supplements thereto, including promptly
furnishing Triangle, upon request, with any and all information as may be required to be set forth in the Proxy Statement under
applicable Laws or rules of the Commission. Triangle will provide to the Purchaser, at least three (3) Business Days prior to filing
with the Commission, the Proxy Statement, or any amendments or supplements thereto, and shall give reasonable consideration to
any comments proposed by the Purchaser prior to distributing (or otherwise making available) the Proxy Statement to the Stockholders.
The Proxy Statement shall include the recommendation of the Board to approve the Proposal.

 

(c)          If,
at any time prior to a Stockholders Meeting, any information relating to Triangle or the Purchaser should be discovered by Triangle
or the Purchaser which should be set forth in an amendment or supplement to a Proxy Statement so that the Proxy Statement shall
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 therein, in light of the circumstances under which they are made, not misleading, the party that
discovers such information shall promptly notify the other party and, to the extent required by applicable law, Triangle shall
use its reasonable best efforts to disseminate as promptly as reasonably practicable in an appropriate manner in accordance with
applicable Law and the rules of the Commission an appropriate amendment thereof or supplement thereto describing such information
to the Stockholders.

 

(d)          Triangle
hereby represents, warrants, covenants and agrees that none of the information included or incorporated by reference in a Proxy
Statement shall, at the date it is first distributed or otherwise made available to the Stockholders or at the time of the applicable
Stockholders Meeting or at the time of any amendment or supplement thereof, 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 therein, in light of
the circumstances under which they are made, not misleading, except that no such representation is made by Triangle with respect
to statements made or incorporated by reference therein in reliance on, and in conformity with, information supplied in writing
by or on behalf of the Purchaser in connection with the preparation of the Proxy Statement or any amendment or supplement thereto
expressly for inclusion therein. The Proxy Statement or any amendment or supplement thereto that is filed by Triangle will comply
as to form in all material respects with the requirements of the Exchange Act.

 

    	24

    	 

    

 

(e)          Triangle’s
obligations under this Section 5.01 shall not apply following any date on which the rules of NYSE MKT, or the staff interpretations
thereof, are changed such that no approval of the Stockholders is required for the Proposal under such rules; provided that
Triangle shall have received, and delivered, or caused to be delivered, to the Purchaser, a written opinion of outside counsel
to Triangle to such effect, or NYSE MKT shall have provided written confirmation to such effect.

 

Section
5.02         Control Share Acquisition and Business Combinations; Stockholder Rights Plans.
Triangle shall take, or use reasonable best efforts to undertake, all actions as are necessary to cause Sections 78.378 through
78.3793, inclusive, and Sections 78.411 through 78.444, inclusive, of the Nevada Corporations Code (or, in the event Triangle
re-incorporates in any other jurisdiction, then the similar anti-takeover laws of such jurisdiction) to not apply to the issuance
of the Convertible Note and the conversion of the Convertible Note into Conversion Shares. If Triangle approves the adoption of
a “poison pill” or other stockholder rights plan, Triangle shall cause such plan to exclude the Purchaser and its
permitted Affiliate transferees of the Convertible Note from being considered an acquiring person thereunder as a result of the
conversion of the Convertible Note into Conversion Shares.

 

Section
5.03         HSR Compliance. Triangle acknowledges that issuance of the Conversion Shares to
the Purchaser upon conversion of the Convertible Note may subject the Purchaser to the filing requirements of the HSR Act. As
a result, such issuance may be subject to compliance by the Purchaser with all applicable filing requirements and the expiration
of all waiting periods under the HSR Act. Accordingly, Triangle shall reasonably cooperate with the Purchaser and shall furnish
to the Purchaser such necessary information and reasonable assistance as the Purchaser may reasonably request in connection with
its preparation of any filings under the HSR Act. For the avoidance of doubt, all expenses incident to the Purchaser’s filing
requirements under the HSR Act shall be borne by the Purchaser.

 

Section
5.04         Further Assurances; Listing of Underlying Shares. From time to time after the
date hereof, without further consideration, Triangle and the Purchaser shall use their commercially reasonable efforts to take,
or cause to be taken, all actions necessary or appropriate to consummate the transactions contemplated by the Transaction Documents.
Without limiting the foregoing, Triangle shall (i) file with NYSE MKT the proper form or other notification and required
supporting documentation, and provide to NYSE MKT any other requested information, related to the Conversion Shares and (ii) ensure
that the issuance of the Conversion Shares is in compliance with applicable NYSE MKT rules and regulations. If Triangle applies
to have its Common Stock or other securities traded on any principal stock exchange or market other than NYSE MKT, it shall include
in such application the Conversion Shares and will take such other action as is necessary to cause such Conversion Shares to be
so listed.

 

Section
5.05         Section 16(b) Matters. Triangle shall take, or shall have taken, all actions reasonably
necessary to cause the payment of interest in kind under the Convertible Note and the exercise of the preemptive rights granted
under the Investment Agreement to be exempt under Section 16(b) of the Exchange Act, including any actions reasonably necessary
pursuant to Rule 16b-3 under the Exchange Act.

  

    	25

    	 

    

 

 

 

ARTICLE
VI

INDEMNIFICATION, COSTS AND EXPENSES

 

Section
6.01         Indemnification by Triangle. Triangle agrees to indemnify the Purchaser and its
Representatives (collectively, “Purchaser Related Parties”) from, and hold each of them harmless against, any
and all losses, actions, suits, proceedings (including any investigations, litigation or inquiries), demands and causes of action,
and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all reasonable costs, losses, liabilities,
damages or expenses of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel and all other
reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred
by them or asserted against or involve any of them), whether or not involving a Third Party Claim, as a result of, arising out
of, or in any way related to (i) the failure of any of the representations or warranties made by Triangle contained herein
to be true and correct in all material respects as of the date hereof or (ii) the breach of any of the covenants of Triangle
contained herein; provided, that in the case of the immediately preceding clause (i), such claim for indemnification
relating to a breach of any representation or warranty is made prior to the expiration of such representation or warranty; provided,
however, that for purposes of determining when an indemnification claim has been made, the date upon which a Purchaser
Related Party shall have given notice to Triangle shall constitute the date upon which such claim has been made; provided,
further, that, absent fraud or willful misconduct, the liability of Triangle shall not be greater in amount than the Purchase
Price.

 

Section
6.02         Indemnification by the Purchaser. The Purchaser agrees to indemnify Triangle and its
Representatives (collectively, “Triangle Related Parties”) from, and hold each of them harmless against, any
and all losses, actions, suits, proceedings (including any investigations, litigation or inquiries), demands and causes of action,
and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all reasonable costs, losses, liabilities,
damages or expenses of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel and all other
reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred
by them or asserted against or involve any of them), whether or not involving a Third Party Claim, as a result of, arising out
of, or in any way related to (i) the failure of any of the representations or warranties made by the Purchaser contained
herein to be true and correct in all material respects as of the date hereof or (ii) the breach of any of the covenants of
the Purchaser contained herein; provided, that in the case of the immediately preceding clause (i), such claim for
indemnification relating to a breach of any representation or warranty is made prior to the expiration of such representation
or warranty; provided, however, that for purposes of determining when an indemnification claim has been made, the
date upon which a Triangle Related Party shall have given notice to the Purchaser shall constitute the date upon which such claim
has been made; provided, further, that, absent fraud or willful misconduct, the liability of the Purchaser (and
its Affiliates, if the Purchaser Transfers (as defined in the Convertible Note) a portion or all of the Convertible Note or all
or a portion of the Conversion Shares to an Affiliate in accordance with the terms and upon the conditions of the Convertible
Note) shall not be greater in amount than the Purchase Price.

 

    	26

    	 

    

 

Section
6.03         Indemnification Procedure.

 

(a)          A
claim for indemnification for any matter not involving a Third Party Claim may be asserted by notice to the party from whom indemnification
is sought; provided, however, that failure to so notify the indemnifying party shall not preclude the indemnified
party from any indemnification that it may claim in accordance with this Article VI.

 

(b)          Promptly
after any Triangle Related Party or Purchaser Related Party (hereinafter, the “Indemnified Party”) has received
notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the
Indemnified Party believes in good faith is an indemnifiable claim under this Agreement (each, a “Third Party Claim”),
the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such
Third Party Claim but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it
may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is prejudiced by such failure. Such
notice shall state the nature and the basis of such Third Party Claim to the extent then known. The Indemnifying Party shall have
the right to defend and settle, at its own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues
the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle such Third Party Claim, it shall
promptly, and in no event later than five (5) days following receipt of notice of such Third Party Claim, notify the Indemnified
Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially
reasonable respects in the defense thereof and/or the settlement thereof. Such cooperation of the Indemnified Party shall be at
the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake
to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the
Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any
defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be entitled
(i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof
and (ii) if (A) the Indemnifying Party has, within ten (10) Business Days of when the Indemnified Party provides written
notice of a Third Party Claim, failed (y) to assume the defense or settlement of such Third Party Claim and employ counsel
and (z) notify the Indemnified Party of such assumption, or (B) if the defendants in any such action include both the
Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable
defenses available to the Indemnified Party that are different from or in addition to those available to the Indemnifying Party
or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party,
then the Indemnified Party shall have the right to select a separate counsel and to assume such settlement or legal defense and
otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses
related to such participation to be reimbursed by the Indemnifying Party as incurred; provided, however, that the
Indemnifying Party shall not be responsible for the fees and expenses of more than one separate counsel for the Purchaser and its
Affiliates. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim
without the consent of the Indemnified Party, unless the settlement thereof imposes no liability or obligation on, and includes
a complete release from liability of, and does not contain any admission of wrongdoing by, the Indemnified Party.

 

    	27

    	 

    

 

Section
6.04         Tax Matters. All indemnification payments under this Article VI shall
be adjustments to the Purchase Price, except as otherwise required by applicable Law.

 

Section
6.05         Exclusive Remedy. Except for the assertion of any claim based on fraud, the remedies
provided in this Article VI shall be the sole and exclusive legal remedies of the parties hereto, from and after the Closing
and prior to the expiration of the applicable survival period in Section 7.03, with respect to breaches of representations,
warranties and covenants under this Agreement and the transactions contemplated hereby.

 

ARTICLE
VII

MISCELLANEOUS

 

Section
7.01         Fees and Expenses. Triangle shall pay out of the proceeds received from the consummation
of the transactions contemplated by this Agreement the reasonable out-of-pocket fees and expenses incurred by the Purchaser in
connection the transactions contemplated by the Transaction Documents, including legal, accounting, advisory and other reasonable
out-of-pocket fees and expenses; provided, that the expenses of the Purchaser paid out of such proceeds shall not exceed
$250,000 in the aggregate.

 

Section
7.02         Interpretation. Article, Section and Schedule references in this Agreement are
references to the corresponding Article, Section and Schedule to this Agreement, unless otherwise specified. All Schedules to
this Agreement are hereby incorporated and made a part hereof as if set forth in full herein and are an integral part of this
Agreement. All references to instruments, documents, Contracts and agreements are references to such instruments, documents, Contracts
and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified.
The word “including” shall mean “including but not limited to” and shall not be construed to limit any
general statement that it follows to the specific or similar items or matters immediately following it. Any reference in this
Agreement to $ shall mean U.S. dollars. Whenever any determination, consent or approval is to be made or given by the Purchaser,
such action shall be in the Purchaser’s sole discretion, unless otherwise specified in this Agreement. If any provision
in the Transaction Documents is held to be illegal, invalid, not binding or unenforceable, (i) such provision shall be fully
severable and the Transaction Documents shall be construed and enforced as if such illegal, invalid, not binding or unenforceable
provision had never comprised a part of the Transaction Documents, and the remaining provisions shall remain in full force and
effect and (ii) the parties hereto shall negotiate in good faith to modify the Transaction Documents so as to effect the
original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby
are consummated as originally contemplated to the greatest extent possible. When calculating the period of time before which,
within which or following which any act is to be done or step taken pursuant to the Transaction Documents, the date that is the
reference date in calculating such period shall be excluded. If the last day of such period is a non-Business Day, the period
in question shall end on the next succeeding Business Day. Any words imparting the singular number only shall include the plural
and vice versa. The words such as “herein,” “hereinafter,” “hereof” and “hereunder”
refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires.
The provision of a Table of Contents, the division of this Agreement into Articles, Sections and other subdivisions and the insertion
of headings are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement.

 

    	28

    	 

    

 

Section
7.03        Survival of Provisions. The representations and warranties set forth in Sections
3.01, 3.04, 3.05, 4.01 and 4.02 shall survive the execution and delivery of this Agreement indefinitely
and the other representations and warranties made herein shall survive until the date upon which Triangle files its Annual Report
on Form 10-K for the year ended January 31, 2013 with the Commission and no claim may be made regarding the representations and
warranties after such date. The covenants made in this Agreement or any other Transaction Document shall survive the Closing and
remain operative and in full force and effect. Regardless of any purported general termination of this Agreement, the provisions
of Article VI and all indemnification rights and obligations of Triangle and the Purchaser thereunder, and this Article VII
shall remain operative and in full force and effect as between Triangle and the Purchaser, unless Triangle and the Purchaser
execute a writing that expressly (with specific references to the applicable Section or subsection of this Agreement) terminates
such rights and obligations as between Triangle and the Purchaser.

 

Section
7.04         No Waiver; Modifications in Writing.

 

(a)          Delay.
Except as otherwise provided herein, no failure or delay on the part of any party in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative
and are not exclusive of any remedies that may be available to a party at Law or in equity or otherwise.

 

(b)          Specific
Waiver. Except as otherwise provided herein, no amendment, waiver, consent, modification or termination of any provision of
this Agreement or any other Transaction Document shall be effective unless signed by each of the parties hereto or thereto affected
by such amendment, waiver, consent, modification or termination. Any amendment, supplement or modification of or to any provision
of this Agreement or any other Transaction Document, any waiver of any provision of this Agreement or any other Transaction Document
and any consent to any departure by Triangle from the terms of any provision of this Agreement or any other Transaction Document
shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically
required by this Agreement, no notice to or demand on Triangle in any case shall entitle Triangle to any other or further notice
or demand in similar or other circumstances. Any investigation by or on behalf of any party shall not be deemed to constitute a
waiver by the party taking such action of compliance with any representation, warranty, covenant or agreement contained herein.

 

    	29

    	 

    

 

Section
7.05         Binding Effect; Assignment.

 

(a)          Binding
Effect. This Agreement shall be binding upon Triangle, the Purchaser and their respective successors and permitted assigns.
Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit upon
any Person other than the parties to this Agreement and their respective successors and permitted assigns.

 

(b)          Assignment
of Rights. The Purchaser’s rights and obligations hereunder (including the right to seek indemnification) may be transferred
or assigned in whole or in part by the Purchaser to any Affiliate of the Purchaser without the consent of Triangle. Upon any such
permitted transfer or assignment, references in this Agreement to the Purchaser (as they apply to the transferor or assignor, as
the case may be) shall thereafter apply to such transferee or assignee of the Purchaser unless the context otherwise requires.
Except as provided in the first sentence of this Section 7.05(b), the Purchaser and its permitted Affiliate transferees
of the Convertible Note shall not assign or transfer any portion of the rights and obligations of the Purchaser under this Agreement
without the written consent of Triangle, which shall not be unreasonably withheld. No portion of the rights and obligations of
Triangle under this Agreement may be transferred or assigned without the prior written consent of the Purchaser, which consent
shall not be unreasonably withheld.

 

Section
7.06         Non-Disclosure. Prior to the Triangle Entities or any of their respective Representatives
disclosing any information naming the Purchaser or any of its Affiliates in any filing with the Commission, NYSE MKT or any Governmental
Authority or other public disclosure, the Triangle Entities shall provide the Purchaser a reasonable opportunity to review and
comment on such disclosure (with such comments being incorporated or reflected, to the extent reasonable, in any such disclosure);
provided, however, that nothing in this Section 7.06 shall delay any required filing with the Commission,
NYSE MKT or any Governmental Authority or other public disclosure or otherwise hinder the Triangle Entities’ or their Representatives’
ability to timely comply with all Laws or rules and regulations of the Commission, NYSE MKT or other Governmental Authority.

 

Section
7.07         Communications. All notices and demands provided for hereunder shall be in writing
and shall be given by hand delivery, electronic mail, registered or certified mail, return receipt requested, regular mail, facsimile
or air courier guaranteeing overnight delivery to the following addresses:

 

(a)         
If to the Purchaser:

 

NGP Triangle
Holdings, LLC

125 East John Carpenter Fwy., Suite 600

Irving, Texas 75062

Attention: Craig Glick

Facsimile: (972) 432-1441

Internet electronic mail: cglick@ngptrs.com

 

    	30

    	 

    

 

with a copy
to:

 

Vinson &
Elkins L.L.P.

1001 Fannin, Suite 2500

Houston, Texas 77002

Attention: Doug McWilliams

Facsimile: (713) 615-5725

Internet electronic mail: dmcwilliams@velaw.com

 

(b)          If
to Triangle:

 

Triangle Petroleum
Corporation

1200 17th Street, Suite 2600

Denver, Colorado 80202

Attention: Justin Bliffen

Facsimile: (303) 260-5080

Internet electronic mail: jbliffen@trianglepetroleum.com

 

with a copy
to:

 

Skadden, Arps,
Slate, Meagher & Flom LLP

1000 Louisiana, Suite 6800

Houston, TX 77002

Attention: Richard Aftanas and Christian Callens

Facsimile: (212) 735-2000

	Internet electronic mail: 	richard.aftanas@skadden.com and
	 	christian.callens@skadden.com

 

or to such other address
as Triangle or the Purchaser may designate in writing. All notices and communications shall be deemed to have been duly given:
(i) at the time delivered by hand, if personally delivered; (ii) when notice is sent to the sender that the recipient
has read the message, if sent by electronic mail; (iii) upon actual receipt if sent by registered or certified mail, return
receipt requested, or regular mail, if mailed; (iv) when receipt is acknowledged, if sent by facsimile; and (v) upon
actual receipt when delivered to an air courier guaranteeing overnight delivery.

 

    	31

    	 

    

 

Section
7.08         Removal of Legend.

 

(a)          The
Purchaser may request Triangle to remove the legend set forth in Section 4.05(d)(i) from the Convertible Note by submitting
to Triangle such certificates, together with an opinion of outside counsel reasonably acceptable to Triangle to the effect that
such legend is no longer required under the Securities Act or applicable state Laws as the case may be, as Triangle may request;
provided, that, no opinion of counsel shall be required if the Purchaser is effecting a sale of the Convertible Note pursuant
to Rule 144 under the Securities Act (and the Purchaser delivers a Rule 144 Representation Letter to Triangle) or the
Conversion Shares have been registered under the Securities Act pursuant to an effective registration statement. Triangle shall
reasonably cooperate with the Purchaser to effect removal of such legend. The legend described in Section 4.05(d)(i)
shall be removed and Triangle shall issue a Convertible Note without such legend to the holder of the Convertible Note upon which
it is stamped, if, unless otherwise required by state securities Laws, (i) such Convertible Note is sold pursuant to an effective
registration statement, (ii) in connection with a sale, assignment or other transfer, such holder provides Triangle with an
opinion of a law firm reasonably acceptable to Triangle, in a generally acceptable form, to the effect that such sale, assignment
or transfer of such Convertible Note may be made without registration under the applicable requirements of the Securities Act,
or (iii) in connection with a sale, assignment of or other transfer of such Convertible Note, such holder provides Triangle
with a representation letter that such Convertible Note will be sold, assigned or transferred pursuant to Rule 144 under the
Securities Act. Triangle shall bear all direct costs and expenses associated with the removal of a legend pursuant to this Section 7.08;
provided, that the Purchaser shall be responsible for all legal fees and expenses of counsel incurred by the Purchaser with
respect to matters addressed in this Section 7.08.

 

(b)          Certificates
evidencing Conversion Shares shall not contain any legend (including the legend set forth in Section 4.05(d)(i)), (i) while
a registration statement covering the resale of such security is effective under the Securities Act and the Purchaser delivers
to Triangle a representation letter agreeing that such Conversion Shares will be sold under such effective registration statement,
or (ii) following any sale of such Conversion Shares pursuant to Rule 144, (iii) if such Conversion Shares may be sold
free of restrictions pursuant to Rule 144(b) or (iv) if such legend is not required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the Commission).

 

Section
7.09         Entire Agreement. This Agreement, the other Transaction Documents and the other agreements
and documents referred to herein are 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
and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein
or the other Transaction Documents with respect to the rights granted by Triangle or any of its Affiliates or the Purchaser or
any of their Affiliates set forth herein or therein. This Agreement, the other Transaction Documents and the other agreements
and documents referred to herein or therein supersede all prior agreements and understandings between the parties with respect
to such subject matter.

 

Section
7.10         Governing Law; Submission to Jurisdiction. This Agreement, and all claims or causes
of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution
or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation
or warranty made in or in connection with this Agreement), will be construed in accordance with and governed by the Laws of the
State of New York without regard to principles of conflicts of Laws (except that matters to which the Law of the jurisdiction
of formation of Triangle is applicable shall be subject to the internal Laws of such state). Any action against any party relating
to the foregoing shall be brought in any federal or state court of competent jurisdiction located within the State of New York
in the Borough of Manhattan in the City of New York, and the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction
of any federal or state court located within the State of New York in the Borough of Manhattan in the City of New York over any
such action. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any objection that they
may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum
for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by Law.

 

    	32

    	 

    

 

Section
7.11        Waiver of Jury Trial. THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVES, AND AGREES
TO CAUSE ITS AFFILIATES TO WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES
AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE
PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

Section
7.12         Execution in Counterparts. This Agreement may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be
deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same agreement.

 

[Remainder of Page Left
Intentionally Blank]

  

    	33

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto execute this Agreement, effective as of the date first above written.

 

	 	TRIANGLE PETROLEUM CORPORATION
	 	 	 
	 	By:	/s/ Jonathan Samuels
	 	Name:	Jonathan Samuels
	 	Title:	President and Chief Executive Officer

 

	 	NGP TRIANGLE HOLDINGS, LLC
	 	 	 
	 	By:	NGP Natural Resources X, L.P., its managing member
	 	 	 
	 	By:	G.F.W. Energy X, L.P., its general partner
	 	 	 
	 	By:	GFW X, L.L.C., its general partner

 

	 	By: 	/s/ Kenneth A. Hersh
	 	Name: Kenneth A. Hersh
	 	Title: Authorized MemberEXHIBIT 4.1

 

CERTIFICATE OF DESIGNATION

FOR

SERIES C CONVERTIBLE REDEEMABLE
PREFERRED STOCK

Par value $.001

OF

RIO BRAVO OIL, INC.

 

 

Thomas Bowman
and Lynden Rose certify that they are the President and Secretary of Rio Bravo Oil, Inc., a Nevada corporation (the "Company");
that, pursuant to the Company's Articles of Incorporation and applicable Nevada law, the Board of Directors of the Company adopted
the following resolutions effective July 30, 1012; and that none of the Series C Convertible Redeemable Preferred Stock referred
to in this Certificate of Designation has been issued.

 

1.           Creation of Series
C Convertible Redeemable Preferred Stock; Rank.

 

There is hereby created a series
of preferred stock consisting of 12,000,000 shares and designated as Series C Convertible Redeemable Preferred Stock, par value
$.001 (the "Series C Preferred Stock"), having the voting rights, powers, preferences, and relative participating, optional
and other special rights, qualifications, limitations and restrictions that are set forth below. The original issue price (the
"Original Issue Price") of each share of Series C Preferred Stock shall be $1.00. The Series C Preferred Stock shall,
with respect to dividend rights and rights upon liquidation, winding up or dissolution, rank (1) junior to any other class or series
of preferred stock hereafter duly established by the Board of Directors of the Corporation, the terms of which shall specifically
provide that such class or series shall rank prior to the Series C Preferred Stock as to the payment of dividends or upon distribution
of assets upon liquidation, winding up or dissolution (the "Senior Preferred Stock"), (2) pari passu with any
other class or series of preferred stock hereafter duly established by the Board of Directors of the Corporation, the terms of
which shall specifically provide that such class or series shall rank pari passu with the Series C Preferred Stock as to
the payment of dividends or upon distribution of assets upon liquidation, winding up or dissolution (the "Parity Preferred
Stock") and (3) prior to any other class or series of preferred stock or other class or series of capital stock of or other
equity interests in the Corporation, including, without limitation, all classes of the Common Stock of the Corporation, whether
now existing or hereafter created (all of such classes: or series of capital stock and other equity interests of the Corporation,
including, without limitation, the Common. Stock, are collectively referred to herein as the "Senior Securities"). Unless
specifically stated with respect to any other series of Preferred Stock of the Corporation, the Series C Preferred Stock shall
be pari-passu with all other series of Preferred Stock of the Corporation and shall be considered a Parity Preferred Stock.

 

    	 

    	 	

    
 

2.           Dividends.

 

A.  Cumulative Series C Preferred Stock Dividend. The Corporation shall pay the holders of Series C Preferred Stock a
dividend in an amount equal to five percent (5%) per annum multiplied by the Original Issue Price of the Series C Preferred Stock
(“Cumulative Preferred Dividend”). Cumulative Preferred Dividends shall be payable in quarterly installments in cash
or in kind, at the sole option of the Corporation. Cumulative Preferred Dividends shall be cumulative and all Series C Preferred
stockholders must receive their full Cumulative Preferred Dividends before any common shareholders are paid dividends. Cumulative
Preferred Dividends shall be prorated from the date of the original sale of the Series C Preferred Stock to the date or dates when
such shares of Series C Preferred Stock are either converted to shares of the Corporation’s Common Stock or redeemed by the
Corporation.

 

B. 
 Right to Receive Dividends. In addition to the Cumulative Preferred Dividends, the holders of Series C Preferred
Stock shall be entitled to receive additional dividends when, as and if declared by the Board of Directors of the Corporation.

 

C.  Participation
with Common Stock. In the event the Board of Directors of the Corporation shall elect to pay or declare and set apart for payment
any dividend on any shares of Common Stock in cash out of funds legally available therefor or in stock or other consideration,
the holders of the Series C Preferred Stock and any Parity Preferred Stock shall be entitled to receive, before any dividend shall
be declared and paid or set aside for the Common Stock, a dividend per share of Series C Preferred Stock and any Parity Preferred
Stock equal to the per share amount, and in the same form as, the

dividends payable to the holders of the Common Stock.

 

D. Dividend Preference.
Dividends, if any, payable to holders of the Series C Preferred Stock pursuant to Sections 2(A), 2(B) and 2(C) shall be payable
before any dividends or distributions or other payments shall be paid or set aside for payment upon the Junior Securities. If there
shall be outstanding shares of any Parity Preferred Stock, no full dividends shall be declared or paid or set apart for payment
on any such securities unless dividends have been or contemporaneously are ratably declared and paid or declared and a sum sufficient
for the payment thereof set apart for such payment on the Series C Preferred Stock.

 

3.            Liquidation Preference.

 

In the event of any liquidation,
dissolution, or winding up of the Corporation, either voluntary or involuntary, distributions to the stockholders of the Corporation
shall be made in. the following manner:

 

A. Series
C Preferred Stock Preference. With respect to such liquidation, dissolution or winding up, the holders of Series C Preferred
Stock shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation
to the holders of Junior Securities (including but not limited to the Common Stock) but after distribution of such assets among,
or payment thereof to holders of any Senior Preferred Stock, an amount equal to the Series C Original Issue Price for each share
of Series C Preferred Stock plus an amount equal to all declared but unpaid dividends on Series C Preferred Stock (the "Series
C Liquidation Preference").

 

    	-2-

    	 	

    
 

B. Distributions.
After the payment of the full Series C Liquidation Preference as set forth in Section 3(A), the remaining assets of the Corporation
legally available for distribution, if any, shall be distributed ratably to the holders of the Junior Securities and Common Stock
in. an amount equal to the Series C Liquidation Preference; after such distribution to the holders of the Series C Preferred Stock
and Common Stock, the remaining assets of the Corporation legally available for distribution, if any, shall be distributed ratably
(subject to Section 3(C)) among the holders of Series C Preferred Stock, all other Parity Preferred Stock and the Common Stock.

 

C. Proportionate
Payments. If the assets and funds legally available for distribution among the holders of Series C Preferred Stock shall be
insufficient to permit the payment to the holders of the full Series C Liquidation Preference and the Liquidation Preference applicable
to the Parity Preferred Stock, then the assets and funds shall be distributed ratably among holders of Series C Preferred Stock
and Parity Preferred Stock in proportion to the number of shares of Series C Preferred Stock and Parity Preferred Stock owned by
each holder.

 

D. Reorganization
or Merger. A merger or reorganization of the Corporation with or into any other corporation or corporations or a sale of all
or substantially all of the assets or outstanding capital stock of the Corporation, in which transaction the Corporation's stockholders
immediately prior to such transaction own immediately after such transaction less than 50% of the equity securities of the surviving
corporation or its parent, shall be deemed to be a liquidation within the meaning of this Section 3 and the proceeds payable in
such transaction shall be divided among the stockholders in accordance with this Section 3.

 

4.           Conversion.

 

A.   Each share of Series C Preferred Stock may be converted by any holder thereof, without any further consideration, at any time,
into 1.11 shares of Common Stock (the “Conversion Rate”).

 

B.    Automatic Conversion. Each share of Series C Preferred Stock shall be automatically converted into shares of the Company’s
Common Stock at the Conversion Rate upon the occurrence of any of the following events:

 

		(i)	The shares of the Corporation’s Common Stock shall trade at a price
of over $1.75 per share (as adjusted for stock splits or other events which would result in an adjustment of the Conversion rate
pursuant to subparagraph 4(E), below) for a period in excess of thirty (30) consecutive trading days and the shares of the Corporation’s
Common Stock underlying the Series C Preferred Stock are either (i) included in an effective registration statement or (ii) eligible
to be traded pursuant to an applicable exemption from registration.

 

    	-3-

    	 	

    
 

 

		(ii)	The closing of a Qualified Sale in accordance with the terms of this section.
For these purposes, “Qualified Sale” means (1) the sale of all or substantially all of the assets of the Corporation
or the outstanding shares of capital stock of the Corporation entitled to vote generally for the election of directors, in any
such case for cash or securities having a value of at least $5.00 per share of Common Stock (as adjusted for any stock dividend,
split, combination, recapitalization or similar transaction with respect to the capital stock of the Corporation), but excluding
any such transaction in which the consideration received by the Corporation or its stockholders includes securities of the purchaser
and such purchaser is not subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
as amended.

 

		(iii)	The merger of the Company which results in the shareholders of the Company
prior to the merger owning less than fifty percent (50%) of the voting power of the Company following the merger.

 

		(iv)	An underwritten initial public offering of the Company’s shares with
gross proceeds of at least $50,000,000.

 

C.   In the event of any
conversion resulting in fractional shares, in lieu of issuance of fractional shares or securities representing fractional shares
of Common Stock, the Company shall pay the holder in cash the fair value of fractions of a share as of the date of conversion as
determined by the Company’s board of directors. For these purposes, the “date of conversion” shall mean the date
the Corporation receives a written notice of a voluntary conversion by the holder or the date of automatic conversion pursuant
to Section 4(B), above.

 

D.  Upon
the occurrence of the event giving rise to an automatic conversion, the Company shall (a) provide written notice of the automatic
conversion to all holders of record of Series C Preferred Stock and (b) provide irrevocable instructions to such effect to the
transfer agent or agents for such stock, and shall have set aside all shares of the Company’s Common Stock necessary for
such conversion. From the date of such notice and setting aside the Common Shares, notwithstanding that any certificate for shares
of Series C Preferred Stock so converted shall not have been surrendered for cancellation, the shares of Series C Preferred Stock
represented thereby shall no longer be deemed outstanding and the holder of such certificate or certificates shall have with respect
to such shares of Series C Preferred Stock no rights in or with respect to the Company except the right to receive the Common Shares
issued as a result of the conversion. After the date designated for automatic conversion, such shares of Series C Preferred Stock
shall not be transferable on the books of the Company.

 

    	-4-

    	 	

    
 

E.   The Company covenants
that it will at all times reserve and keep available, free from preemptive rights, out of the aggregate of its authorized but unissued
shares of Common Stock or its issued shares of Common Stock held by its treasury, or both, for the purpose of effective conversions
of the Series C Preferred Stock, the full number of shares of Common Stock deliverable upon the conversion of all outstanding shares
of the Series C Preferred Stock not theretofore converted. For purposes of this Section 4(E), the number of shares of Common Stock
that shall be deliverable upon the conversion of all outstanding shares of the Series C Preferred Stock shall be computed as if
at the time of computation all the outstanding shares were held by a single holder.

 

		F.	Adjustments of Conversion Rate.

 

		 	(i)                       
Adjustments for Stock Splits and Combinations. If the Company shall, at any time or from time to time after the date
of issuance of the Series C Preferred Stock (“Issuance Date”), effect a split of the outstanding Common Stock, the
Conversion Rate shall be proportionately adjusted. If the Company shall, at any time or from time to time after the Issuance Date,
combine the outstanding shares of Common Stock, the Conversion Rate shall be proportionately adjusted. Any adjustments under this
Section 4(F)(i) shall be effective at the close of business on the date the stock split or combination becomes effective.

 

		 	(ii)                       
Adjustments for Certain Dividends and Distributions. If the Company shall, at any time or from time to time after
the Issuance Date, make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in shares of Common Stock, then, and in each event, the Conversion Rate shall be adjusted as of the
time of such issuance or, in the event such record date shall have been fixed, as of the close of business on such record date,
by multiplying the Conversion Price then in effect by a fraction:

 

a.      
the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the
time of such issuance or the close of business on such record date; and

 

b.     
the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to
the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment
of such dividend or Distribution.

 

(iii)Adjustment
for Other Dividends and Distributions. If the Company shall, at any time or from time to time after the Issuance Date, make
or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other Distribution
payable in securities of the Company other than shares of Common Stock, then, and in each event, an appropriate revision to the
applicable Conversion Rate shall be made and provision shall be made (by adjustments of the Conversion Rate or otherwise) so that
the Series C Preferred Stockholders shall receive upon conversions thereof, in addition to the number of shares of Common Stock
receivable thereon, the number of securities of the Company which they would have received had their shares of Series C Preferred
Stock been converted into Common Stock on the date of such event and had such holder thereafter, during the period from the date
of such event to and including the Conversion Date, retained such securities (together with any distributions payable thereon during
such period), giving application to all adjustments called for during such period under this Section 4(E)(iii) with respect to
the rights of the holders of the Series C Preferred Stock; provided, however, that if such record date shall have been fixed and
such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Rate shall
be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or Distributions; and provided further,
however, that no such adjustment shall be made if the holders of the Series C Preferred Stock simultaneously receive a dividend
or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock as they would have received
if all outstanding shares of Series C Preferred Stock had been converted into Common Stock on the date of such event.

 

    	-5-

    	 	

    
 

(iv)  Adjustments
for Reclassification, Exchange or Substitution. If the Common Stock issuable upon conversion of the Series C Preferred Stock
at any time or from time to time after the Issuance Date shall be changed to the same or different number of shares of any class
or classes of stock, whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination
of shares or stock dividends provided for in Sections 4(F)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale
of assets provided for in Section 4(F)(v), then, and in each event, an appropriate revision to the Conversion Rate shall be made
and provisions shall be made (by adjustments of the Conversion Rate or otherwise) so that the holders of Series C Preferred Stock
shall have the right thereafter to convert their shares of Series C Preferred Stock into the kind and amount of shares of stock
and other securities receivable upon reclassification, exchange, substitution or other change, by holders of the number of shares
of Common Stock into which such shares of Series C Preferred Stock might have been converted immediately prior to such reclassification,
exchange, substitution or other change, all subject to further adjustment as provided herein.

 

(v)  Adjustments
for Reorganization, Merger, Consolidation or Sales of Assets. If at any time or from time to time after the Issuance
Date there shall be a capital reorganization of the Company (other than by way of a stock split or combination of shares or stock
dividends or Distributions provided for in Section 4(F)(i), (ii) and (iii), or a reclassification, exchange or substitution of
shares provided for in Section 4(F)(iv)), or a merger or consolidation of the Company with or into another corporation where the
holders of the Company’s outstanding voting securities prior to such merger or consolidation do not own over 50% of the outstanding
voting securities of the merged or consolidated entity, immediately after such merger or consolidation, or the sale of all or substantially
all of the Company's properties or assets to any other person (an “Organic Change”), then as a part of such Organic
Change an appropriate revision to the Conversion Rate shall be made if necessary and provision shall be made if necessary (by adjustments
of the Conversion Rate or otherwise) so that the holders of the shares of Series C Preferred Stock shall have the right thereafter
to convert their shares of Series C Preferred Stock into the kind and amount of shares of stock and other securities or property
of the Company or any successor corporation resulting from Organic Change. In any such case, appropriate adjustment shall be made
in the application of the provisions of this Section 4(F)(v) with respect to the rights of the holders of shares of Series C Preferred
Stock after the Organic Change to the end that the provisions of this Section 4(F)(v) (including any adjustment in the Conversion
Rate then in effect and the number of shares of stock or other securities deliverable upon conversion of the Series C Preferred
Stock) shall be applied after that event in as nearly an equivalent manner as may be practicable.

 

    	-6-

    	 	

    
 

(vi)  Consideration
for Stock. In case any shares of Common Stock or Convertible Securities other than the Series C Preferred Stock, or any rights
or warrants or options to purchase any such Common Stock or Convertible Securities, shall be issued or sold:

 

a.          in connection with any merger or consolidation in which the Company is the surviving corporation (other than any consolidation
or merger in which the previously outstanding shares of Common Stock of the Company shall be changed to or exchanged for the stock
or other securities of another corporation), the amount of consideration therefore shall be deemed to be the fair value, as determined
reasonably and in good faith by the Board of Directors of the Company, of such portion of the assets and business of the non-surviving
corporation as such Board may determine to be attributable to such shares of Common Stock, Convertible Securities, rights or warrants
or options, as the case may be; or

 

b.           in the event of any consolidation or merger of the Company in which the Company is not the surviving corporation or in which
the previously outstanding shares of Common Stock of the Company shall be changed into or exchanged for the stock or other securities
of another corporation, or in the event of any sale of all or substantially all of the assets of the Company for stock or other
securities of any corporation, the Company shall be deemed to have issued a number of shares of its Common Stock for stock or securities
or other property of the other corporation computed on the basis of the actual exchange ratio on which the transaction was predicated,
and for a consideration equal to the fair market value on the date of such transaction of all such stock or securities or other
property of the other corporation. If any such calculation results in adjustment of the applicable Conversion Rate, or the number
of shares of Common Stock issuable upon conversion of the Series C Preferred Stock, the determination of the applicable Conversion
Rate or the number of shares of Common Stock issuable upon conversion of the Series C Preferred Stock immediately prior to such
merger, consolidation or sale, shall be made after giving effect to such adjustment of the number of shares of Common Stock issuable
upon conversion of the Series C Preferred Stock. In the event any consideration received by the Company for any securities consists
of property other than cash, the fair market value thereof at the time of issuance or as otherwise applicable shall be as determined
in good faith by the Board of Directors of the Company. In the event Common Stock is issued with other shares or securities or
other assets of the Company for consideration which covers both, the consideration computed as provided in this Section 4(F)(vi)(b)
shall be allocated among such securities and assets as determined in good faith by the Board of Directors of the Company.

 

    	-7-

    	 	

    
 

(vii)          
No Impairment. The Company shall not, by amendment of its Articles of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this Section 4(F) and in the taking of all such action
as may be necessary or appropriate in order to protect the conversion rights of the holders of Series C Preferred Stock against
impairment. In the event any holder of Series C Preferred Stock shall elect to convert any shares of Series C Preferred Stock as
provided herein, the Company cannot refuse conversion based on any claim that such holder or anyone associated or affiliated with
such holder has been engaged in any violation of law, unless (i) the Company receives an order from the Securities and Exchange
Commission prohibiting such conversion or (ii) an injunction from a court, on notice, restraining and/or enjoining conversion of
all or of said shares of Series C Preferred Stock shall have been issued.

 

(viii)        
Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Rate or number
of shares of Common Stock issuable upon conversion of shares of Series C Preferred Stock pursuant to this Section 4(F), the Company
at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder
of shares of Series C Preferred Stock a certificate setting forth such adjustment and readjustment, showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon written request of the holder of such affected Series
C Preferred Stock, at any time, furnish or cause to be furnished to such holder a like certificate setting forth such adjustments
and readjustments, the Conversion Rate in effect at the time, and the number of shares of Common Stock and the amount, if any,
of other securities or property which at the time would be received upon the conversion of the shares of Series C Preferred Stock.
Notwithstanding the foregoing, the Company shall not be obligated to deliver a certificate unless such certificate would reflect
an increase or decrease of at least one percent of such adjusted amount.

 

5.            Redemption.

 

The Corporation shall mandatorily
redeem all shares of Series C Preferred Stock which remain issued and outstanding at January 31, 2019 (“Redemption Date”)
at a price equal to the sum of the Original Issue Price and the aggregate amount of any unpaid Cumulative Preferred Dividends attributable
to such shares. Such redemption shall be made only to the extent the Corporation has funds legally available for such redemption
as of the Redemption Date.

 

 

    	-8-

    	 	

    

 

6.             Voting.

 

Except as otherwise provided
herein or required by law, the holders of the Series C Preferred Stock shall be entitled to vote together as a single class with
the holders of Common Stock and any other capital stock of the Corporation entitled to vote, upon any matter submitted to the stockholders
for a vote. The holders of Series C Preferred Stock shall be entitled to one vote for each share of Common Stock into which each
share of Series C Preferred Stock held by such holders at the record date for the determination of the stockholders entitled to
vote on such matters or, if no such record date is established, at the date such vote is taken, is convertible.

 

7.             Waiver by Series C Preferred
Stockholders.

 

Except as expressly provided
for herein or as otherwise required by law, any rights or benefits for the Series C Preferred Shares and the holders thereof provided
herein may only be waived as to all outstanding Series C Preferred Shares by the affirmative written consent of the holders of
all of the shares of then-outstanding Series C Preferred Stock.

 

8.             Additional Issuance
of Preferred Shares.

 

The Company may issue additional
shares of Preferred Stock in the future. If the Company desires to issue additional shares of Preferred Stock, the Company shall
file such amendments to its Articles of Incorporation as may be necessary to effect such designation.

 

IN WITNESS
WHEREOF, the Company has caused this Certificate of Designation to be duly executed by its President and attested to by its Secretary
as of the 30th day of July, 2012, who, by signing their names hereto, acknowledge that this Certificate of Designation is the act
of the Company and state to the best of their knowledge, information and belief, under penalties of perjury, that the above matters
and facts are true in all material respects.

 

RIO BRAVO
OIL, INC.

 

 

        /s/ Thomas
Bowman

By:_________________________________

      Thomas Bowman,
President

 

       /s/
Lynden Rose

By:_________________________________

      Lynden Rose,
Secretary

 

 

    	-9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]