Document:

Exhibit
      10.2

    AMENDMENT
      NO. 2 TO CONVERTIBLE DEBENTURES 

    

    This
      Amendment No. 2 (“Amendment”)
      is
      made as of February 20, 2007 to the Convertible Debentures (collectively, the
      “Convertible
      Debentures”)
      issued
      under the Securities Purchase Agreement dated August 28, 2006 (the “SPA”)
      by and
      between Cornell Capital Partners, LP (“Cornell
      Capital”)
      and
      Mobilepro Corp. (the “Company”)
      for
      loans totaling $7,000,000 from Cornell Capital.

     

    WHEREAS,
      the
      Company owes Cornell Capital weekly payments of $125,000 in principal payments
      plus interest on the outstanding principal balance of the Convertible Debentures
      commencing January 2, 2007 (the “Scheduled
      Payments”)
      that
      the Company and Cornell Capital agreed by Amendment No. 1 to Convertible
      Debenture dated January 17, 2007 to defer until July 8, 2007;

    

    WHEREAS,
      the
      Company has registered 120,689,655 shares of its common stock under a Form
      S-3
      to allow for conversion of the Convertible Debentures;

    

    WHEREAS,
      in
      accordance with the terms of the convertible debenture issued by the Company
      to
      Cornell Capital in the principal amount of $15,149,650, as amended (the “$15.1
      Million Debenture”), the Company has used the 55,089,635 shares of its common
      stock registered under a Form S-3 to make weekly payments of $250,000 in
      principal payments plus interest on the outstanding principal balance of the
      $15.1 Million Debenture commencing November 15, 2006; 

    

    WHEREAS,
      the
      Company desires to increase the amount of the Scheduled Payments until July
      8,
      2007 in return for Cornell Capital deferring payments of principal and interest
      in the same amount under the $15.1 Million Debenture; and

    

    WHEREAS,
      the
      parties to this Agreement desire to amend the Convertible Debentures to allow
      for the increase in Scheduled Payments as requested by the Company and to
      terminate Amendment No. 1.

    

    NOW
      THEREFORE,
      in
      consideration of the foregoing, and for other good and valuable consideration,
      the receipt and sufficiency of which are hereby acknowledged, the parties hereto
      agree as follows:

    

    Section
      1. Amendment
      to Section 1.02 of the Convertible Debentures.
      Section
      1.02
      of the
      Convertible Debentures is hereby amended and restated in its entirety as
      follows:

    

    Section
      1.02 Payments.
      

    

    (a) The
      Company shall make weekly scheduled payments (“Scheduled
      Payments”)
      consisting of at least $250,000 of principal, commencing with the first
      Scheduled Payment which shall be due and payable on February 9, 2007. Interest
      payments on the outstanding principal balance hereof shall be due and payable
      with the principal payment installments above. The Company shall have the right
      to make each Scheduled Payment in shares of Common Stock, which shares shall
      be
      valued at the lower of the Conversion Price then in effect or a price equal
      to a
      seven percent (7%) discount to the average of the two lowest daily volume
      weighted average prices of the Common Stock as quoted by Bloomberg, LP for
      the
      five (5) trading days immediately following the Scheduled Payment date (the
      “Payment
      Conversion Price”),
      provided
      that
      such shares are either (i) freely tradeable under Rule 144 of the Securities
      and
      Exchange Commission (the “Commission”),
      (ii)
      registered for sale under the Securities Act of 1933, or (iii) freely tradeable
      without restriction in the hands of the Holder. All payments in respect of
      the
      indebtedness evidenced hereby shall be made in collected funds (unless paid
      in
      shares of Common Stock) and shall be applied to principal, accrued interest
      and
      charges and expenses owing under or in connection with this Debenture in such
      order as the Holder elects, except that payments shall be applied to accrued
      interest before principal. Notwithstanding the foregoing, this Debenture shall
      become due and immediately payable, including all accrued but unpaid interest,
      upon an Event of Default (as defined in Section
      3.01
      hereof).
      Whenever any payment or other obligation hereunder shall be due on a day other
      than a business day, such payment shall be made on the next succeeding business
      day. Time is of the essence of this Debenture. The Company shall be permitted
      to
      prepay any amounts owed under this Debenture if the price of the shares of
      the
      Company’s Common Stock is less than $0.275 per share and also may, at its
      option, increase any scheduled payment to $750,000 (payable in cash or Common
      Stock as set forth above) without incurring any penalties or fees. Nothing
      contained in this paragraph shall limit the amount that the Holder can convert
      at any time. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      2. Effect
      of Amendment.
      Except
      as amended hereby, the Convertible Debentures shall continue in full force
      and
      effect and are hereby incorporated herein by this reference. 

    

    Section
      3. Governing Law.
      This
      Amendment shall be governed by and construed under the laws of the State of
      New
      Jersey.  

    

    Section
      4. Titles and Subtitles.
      The
      titles of the sections and subtiles of this Amendment are for convenience of
      reference only and are not to be considered in construing this
      Amendment.

    

    Section
      5. Counterparts.
      This
      Amendment may be executed in counterparts, each of which shall be deemed an
      original, and all of which shall constitute one and the same
      instrument.

    
      
        
        

      

      
        2
          -

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be signed
      as
      of the date first set forth above.

     

    
      	 	 	 
	 	MOBILEPRO
              CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
              Jay O. Wright
	 	Title:  
              CEO

    

     

    
      	 	 	 
	 	CORNELL
              CAPITAL PARTNERS, LP
	 
 	 
 	 
 
	 	By:  	Yorkville
              Advisors, LLC
	 	Its:	General Partner

    

     

    
      	 	 	 
	 	By:  	 
	 	
              
Name:
              Troy J. Rillo
	 	Its:
              Managing Director

    

      
        
          
          

        

        
          3
            -From:
      Craig
      Engler [mailto:cengler@cornellcapital.com]

    Sent:
      Fri
      12/29/2006 3:21 PM

    To:
      HRegan@laidlawltd.com

    Cc:
      Timothy
      Neher

    Subject:
      Wherify
      Wireless

     

    To
      Whom
      It May Concern:

     

    This
      is
      to confirm Cornell Capital has extended the December 31st
      deadline
      for new financing until January 31, 2007.  Cornell agrees not to put
      Wherify Wireless in default until such time.  Furthermore, Cornell is
      willing to work with Wherify for a further extension until February
      28th,
      2007
      but will do so only after January 31st. 
      

     

    Any
      questions, please feel free to contact me.  Happy New Year to
      all.

     

    
      	
              Regards,

              Craig
                

               

            	 	 	 
	 	 	 	 
	
              

              Craig
                K. Engler

              Managing
                Director

            	 	 	
            
	 	 	 	 

    

    Cornell
      Capital Partners, LP

    9171
      Towne Centre Drive, Suite 465

    San
      Diego, CA 92122

    Office:
      (858) 552-1177 x11

    Fax:
      (858) 546-8756

    Mobile:
      (619) 985-5272

    www.CornellCapital.comUnassociated Document

    Exhibit
      10.01

    

    SECURITIES
      PURCHASE AGREEMENT

    

    This
      Securities Purchase Agreement (this “AGREEMENT”) is dated as of February 26,
      2007, among Triangle Petroleum Corporation, a Nevada corporation (the
“COMPANY”), and each purchaser identified on the signature pages hereto (each,
      including its successors and assigns, a “PURCHASER” and collectively the
“PURCHASERS”).

    

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act and Rule 506 promulgated thereunder, the
      Company desires to issue and sell to each Purchaser, and each Purchaser,
      severally and not jointly, desires to purchase from the Company, on the Closing
      Date, that number of Shares as is set forth on the Purchaser Signature Page
      of
      that Purchaser. 

    

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and the Purchasers, acting severally,
      agree
      as follows: 

    

    ARTICLE
      I.

    DEFINITIONS
      

     

    1.1 DEFINITIONS.
      In addition to the terms defined elsewhere in this Agreement, for all purposes
      of this Agreement, the following terms have the meanings indicated in this
      Section 1.1: 

     

    “ACTION”
      shall have the meaning ascribed to such term in Section 3.1(j). 

    

    “AFFILIATE”
      means any Person that, directly or indirectly through one or more
      intermediaries, controls or is controlled by or is under common control with
      a
      Person as such terms are used in and construed under Rule 144. With respect
      to a
      Purchaser, any investment fund or managed account that is managed on a
      discretionary basis by the same investment manager as such Purchaser will be
      deemed to be an Affiliate of such Purchaser. 

    

    “CLOSING”
      means the closing of the purchase and sale of the Common Stock pursuant to
      Section 2.1. 

    

    “CLOSING
      DATE” means the Trading Day when all of the Transaction Documents have been
      executed and delivered by the applicable parties thereto, and all conditions
      precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and
      (ii) the Company’s obligations to deliver the Securities have been satisfied or
      waived. The Closing Date shall be February 26, 2007, but the Company may extend
      it one or more times, by notice to the Purchasers given at any time prior to
      or
      on the Closing Date (as previously extended, if applicable), to a date not
      later
      than the date set forth in Section 5.1.

    

    “COMMISSION”
      means the Securities and Exchange Commission. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “COMMON
      STOCK” means the common stock of the Company, par value $.00001 per share, and
      any securities into which such common stock may hereafter be reclassified.
      

    

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

    

    “COMPANY
      COUNSEL” means Sichenzia
      Ross
      Friedman
      Ference
      LLP. 

    

    “EFFECTIVE
      DATE” means the date that the initial registration statement filed by the
      Company for the Registrable Securities is first declared effective by the
      Commission. 

    

    “EVALUATION
      DATE” shall have the meaning ascribed to such term in Section 3.1(r).

    

    “EXCHANGE
      ACT” means the Securities Exchange Act of 1934, as amended. 

    

    “GAAP”
      shall have the meaning ascribed to such term in Section 3.1(h). 

    

    “INTELLECTUAL
      PROPERTY RIGHTS” shall have the meaning ascribed to such term in Section 3.1(o).

    

    “LEGEND
      REMOVAL DATE” shall have the meaning ascribed to such term in Section 4.1(c).

    

    “LIENS”
      means a lien, charge, security interest, encumbrance, right of first refusal,
      preemptive right or other restriction. 

    

    “MATERIAL
      ADVERSE EFFECT” shall have the meaning ascribed to such term in Section 3.1(b).

    

    “MATERIAL
      PERMITS” shall have the meaning ascribed to such term in Section 3.1(m).

    

    “PER
      SHARE PURCHASE PRICE” equals $2.00, subject to adjustment for reverse and
      forward stock splits, stock dividends, stock combinations and other similar
      transactions of the Common Stock that occur after the date of this Agreement
      and
      have a record date prior to the Closing Date. 

    

    “PERSON”
      means an individual or corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, limited liability company, joint
      stock company, government (or an agency or subdivision thereof) or other entity
      of any kind. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “PROCEEDING”
      means an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened. 

    

    “PURCHASER
      PARTY” shall have the meaning ascribed to such term in Section 4.9.

    

    “REGISTRABLE
      SECURITIES” means all of the Shares
      purchased hereunder and held
      by
      the Purchasers, together with any shares of Common Stock issued or issuable
      with
      respect to the Shares as a result of any stock split, dividend or other
      distribution, recapitalization or similar event. 

    

    “REGISTRATION
      AGREEMENT” means that certain Registration Agreement, dated as of the date
      hereof, by and among the Company and the Purchasers.

    

    “REGISTRATION
      STATEMENT” means a registration statement covering the resale of the Registrable
      Securities. 

    

    “REQUIRED
      APPROVALS” shall have the meaning ascribed to such term in Section 3.1(e).

    

    “RULE
      144” means Rule 144 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended from time to time, or any similar rule or
      regulation hereafter adopted by the Commission having substantially the same
      effect as such Rule. 

    

    “SEC
      REPORTS” shall have the meaning ascribed to such term in Section 3.1(h).

    

    “SECURITIES”
      means the Shares. 

    

    “SECURITIES
      ACT” means the Securities Act of 1933, as amended. 

    

    “SHARES”
      means the shares of Common Stock issued or issuable to each Purchaser pursuant
      to this Agreement. 

    

    “SHORT
      SALES” shall include, without limitation, all “short sales” as defined in
      Regulation SHO of the Commission.

    

    “SUBSCRIPTION
      AMOUNT” means, as to each Purchaser, the amounts set forth below such
      Purchaser’s signature block on the signature page hereto, in United States
      dollars and in immediately available funds. 

    

    “SUBSIDIARY”
      shall mean the subsidiaries of the Company, if any, as described in Section
      3.1(a). 

    

    “TRADING
      DAY” means a day on which the Common Stock is traded on a Trading Market.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “TRADING
      MARKET” means the following markets or exchanges on which the Common Stock is
      listed or quoted for trading on the date in question: the American Stock
      Exchange, the New York Stock Exchange, the Nasdaq National Market, the Nasdaq
      SmallCap Market, or the Over the Counter Bulletin Board Market.

    

    “TRANSACTION
      DOCUMENTS” means this Agreement, the Registration Agreement and any other
      documents or agreements executed in connection with the transactions
      contemplated hereunder. 

    

    ARTICLE
      II.

    PURCHASE
      AND SALE 

     

    2.1 CLOSING.
      On the Closing Date, each Purchaser shall purchase from the Company, severally
      and not jointly with the other Purchasers, and the Company shall issue and
      sell
      to each Purchaser, a number of Shares equal to such Purchaser’s Subscription
      Amount divided by the Per Share Purchase Price. The aggregate number of Shares
      sold hereunder shall not exceed 11,600,000. Upon satisfaction of the conditions
      set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of
      Company Counsel or such other location as the parties shall mutually agree.
      

     

    2.2 DELIVERIES.
      

     

    (a) On
      the
      Closing Date, the Company shall deliver or cause to be delivered to each
      Purchaser the following: 

     

    (i) this
      Agreement duly executed by the Company; 

     

    (ii) a
      copy of
      the irrevocable instructions to the Company’s transfer agent instructing the
      transfer agent to deliver, on an expedited basis, a certificate evidencing
      a
      number of Shares equal to such Purchaser’s Subscription Amount divided by the
      Per Share Purchase Price, registered in the name of such Purchaser;

     

    (iii) the
      Registration Agreement, duly executed by the Company; 

     

    (iv) a
      legal
      opinion of Company Counsel, substantially in the form of EXHIBIT A attached
      hereto; and

     

    (v) a
      certificate, executed by the Chief Executive Officer of the Company, dated
      as of
      the Closing Date, certifying that the representations and warranties of the
      Company were true and correct as of the date when made and as of the Closing
      Date as though made at that time (except for representations and warranties
      that
      speak as of a specific date) and that the Company has performed, satisfied
      and
      complied in all respects with all covenants, obligations, agreements and
      conditions required by the Transaction Documents to be performed, satisfied
      or
      complied with by the Company at or prior to the Closing Date.

     

    (b) On
      the
      Closing Date, each Purchaser shall deliver or cause to be delivered to the
      Company the following: 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (i) this
      Agreement duly executed by such Purchaser; and 

     

    (ii) such
      Purchaser’s Subscription Amount by wire transfer to the account as specified in
      writing by the Company. 

     

    2.3 CLOSING
      CONDITIONS. 

     

    (a) The
      obligations of the Company hereunder in connection with the Closing are subject
      to the following conditions being met: 

     

    (i) the
      accuracy in all respects as of the date when made and as of the Closing Date
      of
      the representations and warranties of the Purchasers contained herein (except
      for representations and warranties that speak as of a specific
      date);

     

    (ii) all
      obligations, covenants and agreements of the Purchasers required to be performed
      at or prior to the Closing Date shall have been performed; and 

     

    (iii) 
      the
      delivery by the Purchasers of the items set forth in Section 2.2(b) of this
      Agreement. 

     

    (b) The
      respective obligations of the Purchasers hereunder in connection with the
      Closing are subject to the following conditions being met: 

     

    (i) the
      accuracy in all respects as of the date when made and as of the Closing Date
      of
      the representations and warranties of the Company contained herein (except
      for
      representations and warranties that speak as of a specific date); 

     

    (ii) all
      obligations, covenants and agreements of the Company required to be performed
      at
      or prior to the Closing Date shall have been performed; 

     

    (iii) the
      delivery by the Company of the items set forth in Section 2.2(a) of this
      Agreement; 

     

    (iv) there
      shall have been no Material Adverse Effect with respect to the Company since
      the
      date hereof;

     

    (v) the
      Company shall have obtained all governmental, regulatory or third party consents
      and approvals, if any, necessary for the sale of the Shares; and

     

    (vi) From
      the
      date hereof to the Closing Date, trading in the Common Stock shall not have
      been
      suspended by the Commission (except for any suspension of trading of limited
      duration agreed to by the Company, which suspension shall be terminated prior
      to
      the Closing), and, at any time prior to the Closing Date, trading in securities
      generally as reported by Bloomberg Financial Markets shall not have been
      suspended or limited, or minimum prices shall not have been established on
      securities whose trades are reported by such service, or on any Trading Market,
      nor shall a banking moratorium have been declared either by the United States
      or
      New York State authorities nor shall there have occurred any material outbreak
      or escalation of hostilities or other national or international calamity of
      such
      magnitude in its effect on, or any material adverse change in, any financial
      market that, in each such case, in the reasonable judgment of a majority in
      interest of the Purchasers, makes it impracticable or inadvisable to purchase
      the Shares at the Closing. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES 

     

    3.1 REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY. The Company hereby makes the representations
      and
      warranties set forth below to each Purchaser: 

     

    (a) SUBSIDIARIES.
      Elmsworth Energy
      Corporation, incorporated under the laws of Alberta, Canada, and Triangle USA
      Petroleum Corporation, a Colorado corporation, are the only Subsidiaries of
      the
      Company. The Company has no direct or indirect equity interest in any other
      entity. The Company owns, directly or indirectly, all of the capital stock
      or
      other equity interests of each Subsidiary free and clear of any Liens, and
      all
      the issued and outstanding shares of capital stock of each Subsidiary are
      validly issued and are fully paid, non-assessable and free of preemptive and
      similar rights to subscribe for or purchase securities. 

     

    (b) ORGANIZATION
      AND QUALIFICATION. The Company and each of the Subsidiaries is an entity duly
      incorporated or otherwise organized, validly existing and in good standing
      under
      the laws of the jurisdiction of its incorporation or organization (as
      applicable), with the requisite power and authority to own and use its
      properties and assets and to carry on its business as currently conducted.
      Neither the Company nor any Subsidiary is in violation or default of any of
      the
      provisions of its respective certificate or articles of incorporation, bylaws
      or
      other organizational or charter documents. Each of the Company and the
      Subsidiaries is duly qualified to conduct business and is in good standing
      as a
      foreign corporation or other entity in each jurisdiction in which the nature
      of
      the business conducted or property owned by it makes such qualification
      necessary, except where the failure to be so qualified or in good standing,
      as
      the case may be, would not reasonably be expected to result in (i) a material
      adverse effect on the legality, validity or enforceability of any Transaction
      Document, (ii) a material adverse effect on the operations (including results
      thereof), assets, business, liabilities, prospects or condition (financial
      or
      otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii)
      a
      material adverse effect on the Company’s ability to perform in any material
      respect on a timely basis its obligations under any Transaction Document (any
      of
      (i), (ii) or (iii), a “MATERIAL ADVERSE EFFECT”) and no Proceeding has been
      instituted in any such jurisdiction revoking, limiting or curtailing or seeking
      to revoke, limit or curtail such power and authority or qualification.

     

    (c) AUTHORIZATION;
      ENFORCEMENT. The Company has the requisite corporate power and authority to
      enter into and to consummate the transactions contemplated by each of the
      Transaction Documents and otherwise to carry out its obligations thereunder.
      The
      execution and delivery of each of the Transaction Documents by the Company
      and
      the consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no further
      action is required by the Company in connection therewith other than in
      connection with the Required Approvals. Each of the Transaction Documents has
      been (or upon delivery will have been) duly executed by the Company and, when
      delivered in accordance with the terms hereof, will constitute the valid and
      binding obligation of the Company enforceable against the Company in accordance
      with its terms except (i) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium and other laws of general application affecting
      enforcement of creditors’ rights generally and (ii) as limited by laws relating
      to the availability of specific performance, injunctive relief or other
      equitable remedies. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (d) NO
      CONFLICTS. The execution, delivery and performance of the Transaction Documents
      by the Company, the issuance and sale of the Shares and the consummation by
      the
      Company of the other transactions contemplated thereby do not and will not
      (i)
      conflict with or violate any provision of the Company’s or any Subsidiary’s
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents, or (ii) conflict with, or constitute a default (or an event
      that with notice or lapse of time or both would become a default) under, result
      in the creation of any Lien upon any of the properties or assets of the Company
      or any Subsidiary, or give to others any rights of termination, amendment,
      acceleration or cancellation (with or without notice, lapse of time or both)
      of,
      any agreement, credit facility, debt or other instrument (evidencing a Company
      or Subsidiary debt or otherwise) or other understanding to which the Company
      or
      any Subsidiary is a party or by which any property or asset of the Company
      or
      any Subsidiary is bound or affected, or (iii) subject to the Required Approvals,
      conflict with or result in a violation of any law, rule, regulation, order,
      judgment, injunction, decree or other restriction of any court or governmental
      authority to which the Company or a Subsidiary is subject (including federal
      and
      state securities laws and regulations), or by which any property or asset of
      the
      Company or a Subsidiary is bound or affected; except in the case of each of
      clauses (ii) and (iii), such as would not reasonably be expected to result
      in a
      Material Adverse Effect. 

     

    (e) FILINGS,
      CONSENTS AND APPROVALS. The Company is not required to obtain any consent,
      waiver, authorization or order of, give any notice to, or make any filing or
      registration with, any court or other federal, state, local or other
      governmental authority or other Person in connection with the execution,
      delivery and performance by the Company of the Transaction Documents, other
      than
      (i) filings required pursuant to Section 4.4 of this Agreement, (ii) the filing
      with the Commission of a Registration Statement, (iii) application(s) to each
      applicable Trading Market for the listing of the Shares for trading thereon
      in
      the time and manner required thereby, and (iv) the filing of Form D with the
      Commission and such filings as are required to be made under applicable state
      securities laws (collectively, the “REQUIRED APPROVALS”). 

     

    (f) ISSUANCE
      OF THE SECURITIES. The Shares are duly authorized and, when issued and paid
      for
      in accordance with the Transaction Documents, will be duly and validly issued,
      fully paid and nonassessable, free and clear of all Liens imposed by the Company
      other than restrictions on transfer provided for in the Transaction
      Documents.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (g) CAPITALIZATION.
      The authorized capital stock of the Company consists of 100,000,000 shares
      of
      common stock. As of January
      31,
      2007,
      there were 22,475,866
      shares
      of Common Stock issued and outstanding. As of January
      31,
      2007, an
      aggregate of 2,000,000 shares of Common Stock are reserved for issuance pursuant
      to the Company’s 2005 Incentive Stock Plan, of which 1,630,000
      are
      reserved for issuance upon exercise of outstanding options and options remaining
      available for issuance upon exercise under the Company’s 2005 Incentive Stock
      Plan; (i)
      6,000,000
      shares
      of Common Stock were reserved for issuance upon exercise of outstanding
      warrants; and (ii)
      10,306,664
      shares
      of Common Stock were reserved for issuance upon conversion of convertible
      debentures. Other than as specified above, no other shares or options, warrants
      or other rights to acquire shares of capital stock of the Company or securities
      convertible into capital stock of the Company are outstanding. The Company
      has
      not issued any capital stock since its most recently filed periodic report
      under
      the Exchange Act, other than pursuant to the exercise of employee stock options
      under the Company’s stock option plans, the issuance of shares of Common Stock
      to employees pursuant to the Company’s employee stock purchase plan and pursuant
      to the conversion or exercise of outstanding Common Stock Equivalents. No Person
      has any right of first refusal, preemptive right, right of participation, or
      any
      similar right to participate in the transactions contemplated by the Transaction
      Documents. Except as set forth in the Company’s SEC Reports, there are no
      outstanding options, warrants, script rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities, rights
      or
      obligations convertible into or exchangeable for, or giving any Person any
      right
      to subscribe for or acquire, any shares of Common Stock, or contracts,
      commitments, understandings or arrangements by which the Company or any
      Subsidiary is or may become bound to issue additional shares of Common Stock
      or
      Common Stock Equivalents. The issue and sale of the Securities will not obligate
      the Company to issue shares of Common Stock or other securities to any Person
      (other than the Purchasers) and will not result in a right of any holder of
      securities of the Company to adjust the exercise, conversion, exchange or reset
      price under such securities. All of the outstanding shares of capital stock
      of
      the Company are validly issued, fully paid and nonassessable, have been issued
      in compliance with all federal and state securities laws, and none of such
      outstanding shares was issued in violation of any preemptive rights or similar
      rights to subscribe for or purchase securities. No further approval or
      authorization of any stockholder, the Board of Directors of the Company or
      others is required for the issuance and sale of the Shares. There are no
      stockholders agreements, voting agreements or other similar agreements with
      respect to the Company’s capital stock to which the Company is a party or, to
      the knowledge of the Company, between or among any of the Company’s
      stockholders. 

     

    
      (h) SEC
        REPORTS; FINANCIAL STATEMENTS. The Company has filed all reports, schedules,
        forms, statements and other documents required to be filed by it under the
        Securities Act and the Exchange Act, including pursuant to Section 13(a)
        or
        15(d) thereof, for the two years preceding the date hereof (or such shorter
        period as the Company was required by law to file such material) (the foregoing
        materials, including the exhibits thereto and documents incorporated by
        reference therein, being collectively referred to herein as the “SEC REPORTS”)
        on a timely basis or has received a valid extension of such time of filing
        and
        has filed any such SEC Reports prior to the expiration of any such extension.
        As
        of their respective dates, the SEC Reports complied in all material respects
        with the requirements of the Securities Act and the Exchange Act and the
        rules
        and regulations of the Commission promulgated thereunder, and none of the
        SEC
        Reports, when filed, contained any untrue statement of a material fact or
        omitted to state a material fact required to be stated therein or necessary
        in
        order to make the statements therein, in light of the circumstances under
        which
        they were made, not misleading. The financial statements of the Company included
        in the SEC Reports comply in all material respects with applicable accounting
        requirements and the rules and regulations of the Commission with respect
        thereto as in effect at the time of filing. Such financial statements have
        been
        prepared in accordance with United States generally accepted accounting
        principles applied on a consistent basis during the periods involved (“GAAP”),
        except as may be otherwise specified in such financial statements or the
        notes
        thereto and except that unaudited financial statements may not contain all
        footnotes required by GAAP, and fairly present in all material respects the
        financial position of the Company and its consolidated Subsidiaries as of
        and
        for the dates thereof and the results of operations and cash flows for the
        periods then ended, subject, in the case of unaudited statements, to normal,
        immaterial, year-end audit adjustments. No event, liability, development
        or
        circumstance has occurred or exists, or is contemplated to occur, with respect
        to the Company or any of its Subsidiaries or their respective business, assets,
        properties, prospects, operations (including results thereof), liabilities
        or
        condition (financial or otherwise), that would be required to be disclosed
        by
        the Company under applicable securities laws on a registration statement
        on Form
        S-1 filed with the Commission relating to an issuance and sale by the Company
        of
        its Common Stock and which has not been publicly announced, other than the
        transactions contemplated by this Agreement.

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (i) MATERIAL
      CHANGES. Since the date of the latest audited financial statements included
      within the SEC Reports, except as specifically disclosed in the SEC Reports,
      (i)
      there has been no event, occurrence or development that has had or that could
      reasonably be expected to result in a Material Adverse Effect, (ii) the Company
      has not incurred any liabilities (contingent or otherwise) other than (A) trade
      payables and accrued expenses incurred in the ordinary course of business
      consistent with past practice, (B) liabilities not required to be reflected
      in
      the Company’s financial statements pursuant to GAAP or required to be disclosed
      in filings made with the Commission, (iii) the Company has not altered its
      method of accounting, (iv) the Company has not declared or made any dividend
      or
      distribution of cash or other property to its stockholders or purchased,
      redeemed or made any agreements to purchase or redeem any shares of its capital
      stock and (v) the Company has not issued any equity securities to any officer,
      director or Affiliate, except pursuant to existing Company stock option plans.
      The Company does not have pending before the Commission any request for
      confidential treatment of information. 

     

    (j) LITIGATION.
      There is no action, suit, inquiry, notice of violation, proceeding or
      investigation pending or, to the knowledge of the Company, threatened against
      or
      affecting the Company, any Subsidiary or any of their respective properties
      before or by any court, arbitrator, governmental or administrative agency or
      regulatory authority (federal, state, county, local or foreign) (collectively,
      an “ACTION”) which (i) adversely affects or challenges the legality, validity or
      enforceability of any of the Transaction Documents or the Securities or (ii)
      could, if there were an unfavorable decision, have or reasonably be expected
      to
      result in a Material Adverse Effect. Neither the Company nor any Subsidiary,
      nor, to the knowledge of the Company, any director or officer thereof, is or
      has
      been the subject of any Action involving a claim of violation of or liability
      under federal or state securities laws or a claim of breach of fiduciary duty.
      There has not been, and to the knowledge of the Company, there is not pending
      or
      threatened, any investigation by the Commission involving the Company or any
      current director or officer of the Company. The Commission has not issued any
      stop order or other order suspending the effectiveness of any registration
      statement filed by the Company or any Subsidiary under the Exchange Act or
      the
      Securities Act. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (k) LABOR
      RELATIONS. No material labor dispute exists or, to the knowledge of the Company,
      is imminent with respect to any of the employees of the Company which could
      reasonably be expected to result in a Material Adverse Effect. 

     

    (l) COMPLIANCE.
      Except in each case as would not reasonably be expected to have a Material
      Adverse Effect, neither the Company nor any Subsidiary (i) is in default under
      or in violation of (and no event has occurred that has not been waived that,
      with notice or lapse of time or both, would result in a default by the Company
      or any Subsidiary under), nor has the Company or any Subsidiary received notice
      of a claim that it is in default under or that it is in violation of, any
      indenture, loan or credit agreement or any other agreement or instrument to
      which it is a party or by which it or any of its properties is bound (whether
      or
      not such default or violation has been waived), (ii) is in violation of any
      order of any court, arbitrator or governmental body, or (iii) is or has been
      in
      violation of any statute, rule or regulation of any governmental authority,
      including without limitation all foreign, federal, state and local laws
      applicable to its business. 

     

    (m) REGULATORY
      PERMITS. The Company and the Subsidiaries possess all certificates,
      authorizations and permits issued by the appropriate federal, state, local
      or
      foreign regulatory authorities necessary to conduct their respective businesses
      as described in the SEC Reports, except where the failure to possess such
      permits would not reasonably be expected to result in a Material Adverse Effect
      (“MATERIAL PERMITS”), and neither the Company nor any Subsidiary has received
      any notice of proceedings relating to the revocation or modification of any
      Material Permit. 

     

    (n) TITLE
      TO
      ASSETS. The Company and the Subsidiaries have good and defensible title in
      fee
      simple to all real property owned by them that is material to the business
      of
      the Company and the Subsidiaries and good and defensible title to all personal
      property owned by them that is material to the business of the Company and
      the
      Subsidiaries, in each case free and clear of all Liens, except for Liens
      securing borrowings as disclosed in the SEC Reports, Liens as do not materially
      affect the value of the Company’s properties taken as a whole and do not
      materially interfere with the use made and proposed to be made of such property
      by the Company and the Subsidiaries and Liens for the payment of federal, state
      or other taxes, the payment of which is neither delinquent nor subject to
      penalties. Any real property and facilities held under lease by the Company
      and
      the Subsidiaries are held by them under valid, subsisting and enforceable leases
      of which the Company and the Subsidiaries are in compliance in all material
      respects. 

     

    (o) PATENTS
      AND TRADEMARKS. The Company and the Subsidiaries have, or have rights to use,
      all patents, patent applications, trademarks, trademark applications, service
      marks, trade names, copyrights, licenses and other similar rights necessary
      or
      material for use in connection with their respective businesses as described
      in
      the SEC Reports and which the failure to so have could have a Material Adverse
      Effect (collectively, the “INTELLECTUAL PROPERTY RIGHTS”). Neither the Company
      nor any Subsidiary has received a written notice that the Intellectual Property
      Rights used by the Company or any Subsidiary violates or infringes upon the
      rights of any Person. To the knowledge of the Company, all such Intellectual
      Property Rights are enforceable and there is no existing infringement by another
      Person of any of the Intellectual Property Rights of others. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (p) INSURANCE.
      The Company and the Subsidiaries are insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as are prudent
      and customary in the businesses in which the Company and the Subsidiaries are
      engaged, excluding directors
      and officers insurance. Neither the Company nor any Subsidiary has any reason
      to
      believe that it 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 without a significant increase
      in
      cost. 

     

    (q) TRANSACTIONS
      WITH AFFILIATES AND EMPLOYEES. Except as set forth in the SEC Reports, none
      of
      the officers or directors of the Company and, to the knowledge of the Company,
      none of the employees of the Company is presently a party to any transaction
      with the Company or any Subsidiary (other than for services as employees,
      officers and directors), including any contract, agreement or other arrangement
      providing for the furnishing of services to or by, providing for rental of
      real
      or personal property to or from, or otherwise requiring payments to or from
      any
      officer, director or such employee or, to the knowledge of the Company, any
      entity in which any officer, director, or any such employee has a substantial
      interest or is an officer, director, trustee or partner, in each case in excess
      of $60,000 other than (i) for payment of salary or consulting fees for services
      rendered, (ii) reimbursement for expenses incurred on behalf of the Company
      and
      (iii) for other employee benefits, including stock option agreements under
      any
      stock option plan of the Company. 

     

    (r) SARBANES-OXLEY;
      INTERNAL ACCOUNTING CONTROLS. The Company is in material compliance with all
      provisions of the Sarbanes-Oxley Act of 2002 that are applicable to it as of
      the
      Closing Date. The Company’s certifying officers have evaluated the effectiveness
      of the Company’s disclosure controls and procedures and internal controls and
      procedures as of the date prior to the filing date of the most recently filed
      periodic report under the Exchange Act (such date, the “EVALUATION DATE”). The
      Company presented in its most recently filed periodic report under the Exchange
      Act the conclusions of the certifying officers about the effectiveness of the
      disclosure controls and procedures and internal controls and procedures based
      on
      their evaluations as of the Evaluation Date. Since the Evaluation Date, there
      have been no significant changes in the Company’s internal controls (as such
      term is defined in Item 307(b) of Regulation S-K under the Exchange Act) or,
      to
      the Company’s knowledge, in other factors that could significantly affect the
      Company’s internal controls. 

     

    (s) CERTAIN
      FEES. Other than the fees payable to Capital One Southcoast, Inc, and Pickering
      Energy Partners, Inc. (the “PLACEMENT AGENTS”) pursuant to the terms of their
      engagement letter with the Company of 6.5% of the aggregate Share Purchase
      Prices, divided among them 70% and 30%, respectively, no brokerage or finder’s
      fees or commissions are or will be payable by the Company to any broker,
      financial advisor or consultant, finder, placement agent, investment banker,
      bank or other Person with respect to the transactions contemplated by this
      Agreement. The Purchasers shall have no obligation with respect to any fees
      or
      with respect to any claims made by or on behalf of other Persons for fees of
      a
      type contemplated in this Section that may be due in connection with the
      transactions contemplated by this Agreement. 

     

    (t) PRIVATE
      PLACEMENT. Assuming the accuracy of the representations and warranties of the
      Purchasers set forth in Section 3.2, no registration under the Securities Act
      is
      required for the offer and sale of the Securities by the Company to the
      Purchasers as contemplated hereby. The issuance and sale of the Securities
      hereunder does not contravene the rules and regulations of the Trading Market.
      

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (u) INVESTMENT
      COMPANY. The Company is not, and is not an Affiliate of, and immediately after
      receipt of payment for the Shares, will not be or be an Affiliate of, an
“investment company” within the meaning of the Investment Company Act of 1940,
      as amended. The Company shall conduct its business in a manner so that it will
      not become subject to the Investment Company Act. 

     

    (v) LISTING
      AND MAINTENANCE REQUIREMENTS. The Company’s Common Stock is registered pursuant
      to Section 12(g) of the Exchange Act, and the Company has taken no action
      designed to, or which to its knowledge is likely to have the effect of,
      terminating the registration of the Common Stock under the Exchange Act nor
      has
      the Company received any notification that the Commission is contemplating
      terminating such registration. The Company has not, in the 12 months preceding
      the date hereof, received notice from any Trading Market on which the Common
      Stock is or has been listed or quoted to the effect that the Company is not
      in
      compliance with the listing or maintenance requirements of such Trading Market.
      The Company is, and has no reason to believe that it will not in the foreseeable
      future continue to be, in compliance with all such listing and maintenance
      requirements.

     

    (w) APPLICATION
      OF TAKEOVER PROTECTIONS. The Company and its Board of Directors have taken
      all
      necessary action, if any, in order to render inapplicable any control share
      acquisition, business combination, poison pill (including any distribution
      under
      a rights agreement) or other similar anti-takeover provision under the Company’s
      Certificate of Incorporation (or similar charter documents) or the laws of
      its
      state of incorporation or otherwise existing that could become applicable to
      the
      Purchasers as a result of the Purchasers and the Company fulfilling their
      obligations or exercising their rights under the Transaction Documents,
      including without limitation the Company’s issuance of the Securities to each
      Purchaser pursuant to this Agreement. The Company has not adopted a shareholder
      rights plan or similar arrangement relating to accumulations of beneficial
      ownership of shares of Common Stock or a change in control of the
      Company.

     

    (x) DISCLOSURE.
      The Company confirms that all disclosure provided to the Purchasers regarding
      the Company, its business and the transactions contemplated hereby, including
      the Company’s Private Placement Memorandum (the “PPM”) and the representations
      and warranties set forth in this Agreement do not contain any untrue statement
      of a material fact or omit to state any material fact necessary in order to
      make
      the statements made therein, in light of the circumstances under which they
      were
      made, not misleading. The Company acknowledges and agrees that no Purchaser
      makes or has made any representations or warranties with respect to the
      transactions contemplated hereby other than those specifically set forth in
      Section 3.2 hereof. The Company represents that the PPM does not contain any
      material nonpublic information concerning the Company or its securities, other
      than information that will be contained in the Current Report that is referred
      to in Section 4.4.

     

    (y) NO
      INTEGRATED OFFERING. Assuming the accuracy of the Purchasers’ representations
      and warranties set forth in Section 3.2, neither the Company, nor to the
      Company’s knowledge, any of its Affiliates, nor any Person acting on its or
      their behalf has, directly or indirectly, made any offers or sales of any
      security or solicited any offers to buy any security, under circumstances that
      would cause this offering of the Securities to be integrated with prior
      offerings by the Company for purposes of the Securities Act or any applicable
      shareholder approval provisions, including, without limitation, under the rules
      and regulations of any Trading Market on which any of the securities of the
      Company are listed or designated.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (z) SOLVENCY.
      Based on the financial condition of the Company as of the Closing Date after
      giving effect to the receipt by the Company of the proceeds from the sale of
      the
      Securities hereunder, (i) the Company’s fair saleable value of its assets
      exceeds the amount that will be required to be paid on or in respect of the
      Company’s existing debts and other liabilities (including known contingent
      liabilities) as they mature; (ii) the Company’s assets do not constitute
      unreasonably small capital to carry on its business for the current fiscal
      year
      as now conducted and as proposed to be conducted including its capital needs
      taking into account the particular capital requirements of the business
      conducted by the Company, and projected capital requirements and capital
      availability thereof; and (iii) the current cash flow of the Company, together
      with the proceeds the Company would receive, were it to liquidate all of its
      assets, after taking into account all anticipated uses of the cash, would be
      sufficient to pay all amounts on or in respect of its debt when such amounts
      are
      required to be paid. The Company does not intend to incur debts beyond its
      ability to pay such debts as they mature (taking into account the timing and
      amounts of cash to be payable on or in respect of its debt). The Company has
      no
      knowledge of any facts or circumstances which lead it to believe that it will
      file for reorganization or liquidation under the bankruptcy or reorganization
      laws of any jurisdiction within one year from the Closing Date. The SEC Reports
      set forth as of the dates thereof all outstanding secured and unsecured
      Indebtedness of the Company or any Subsidiary, or for which the Company or
      any
      Subsidiary has commitments. For the purposes of this Agreement, “INDEBTEDNESS”
shall mean (a) any liabilities for borrowed money or amounts owed in excess
      of
      $50,000 (other than trade accounts payable incurred in the ordinary course
      of
      business), (b) all guaranties, endorsements and other contingent obligations
      in
      respect of Indebtedness of others, whether or not the same are or should be
      reflected in the Company’s balance sheet (or the notes thereto), except
      guaranties by endorsement of negotiable instruments for deposit or collection
      or
      similar transactions in the ordinary course of business; and (c) the present
      value of any lease payments in excess of $50,000 due under leases required
      to be
      capitalized in accordance with GAAP. Neither the Company nor any Subsidiary
      is
      in default with respect to any Indebtedness. 

     

    (aa) TAXES.
      Except for matters that would not, individually or in the aggregate, reasonably
      be expected to result in a Material Adverse Effect, the Company and each
      Subsidiary have filed all necessary federal, state and foreign income and
      franchise tax returns and has paid or accrued all taxes shown as due thereon,
      and the Company has no knowledge of a material tax deficiency which has been
      asserted or threatened against the Company or any Subsidiary. 

     

    (bb) NO
      GENERAL SOLICITATION. Neither the Company nor any person acting on behalf of
      the
      Company has offered or sold any of the Shares by any form of general
      solicitation or general advertising. The Company has offered the Shares for
      sale
      only to the Purchasers and certain other “accredited investors” within the
      meaning of Rule 501 under the Securities Act and “qualified institutional
      buyers” as defined in Rule 144A(a) under the Securities Act.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (cc) FOREIGN
      CORRUPT PRACTICES. Neither the Company, nor to the knowledge of the Company,
      any
      agent or other person acting on behalf of the Company, has (i) directly or
      indirectly, used any funds for unlawful contributions, gifts, entertainment
      or
      other unlawful expenses related to foreign or domestic political activity,
      (ii)
      made any unlawful payment to foreign or domestic government officials or
      employees or to any foreign or domestic political parties or campaigns from
      corporate funds, (iii) failed to disclose fully any contribution made by the
      Company (or made by any person acting on its behalf of which the Company is
      aware) which is in violation of law, or (iv) violated in any material respect
      any provision of the Foreign Corrupt Practices Act of 1977, as amended.

     

    (dd) ACCOUNTANTS.
      The Company’s accountants are named in the Company’s Form 10-KSB for the fiscal
      year ended January 31, 2006. To the Company’s knowledge, such accountants, who
      the Company expects to express their opinion with respect to the financial
      statements to be included in the Company’s Annual Report on Form 10-KSB
      for
      the fiscal year ended January 31, 2007, and with respect to the adequacy of
      the
      Company’s internal controls, are a registered public accounting firm as required
      by the Securities Act. 

     

    (ee) ACKNOWLEDGMENT
      REGARDING PURCHASERS’ PURCHASE OF SHARES. The Company acknowledges and agrees
      that each of the Purchasers is acting solely in the capacity of an arm’s length
      purchaser with respect to the Transaction Documents and the transactions
      contemplated hereby. The Company further acknowledges that no Purchaser is
      acting as a financial advisor or fiduciary of the Company (or in any similar
      capacity) with respect to this Agreement and the transactions contemplated
      hereby and any advice given by any Purchaser or any of their respective
      representatives or agents in connection with this Agreement and the transactions
      contemplated hereby is merely incidental to such Purchaser’s purchase of the
      Shares. The Company further represents to each Purchaser that the Company’s
      decision to enter into this Agreement has been based solely on the independent
      evaluation of the transactions contemplated hereby by the Company and its
      representatives. 

     

    (ff) ACKNOWLEDGEMENT
      REGARDING PURCHASERS’ TRADING ACTIVITY. Anything in this Agreement or elsewhere
      herein to the contrary notwithstanding (except for Sections 3.2(f), 3.2(h)
      and
      4.8 hereof), it is understood and agreed by the Company (i) that none of the
      Purchasers have been asked to agree, nor has any Purchaser agreed, to desist
      from purchasing or selling, long and/or short, securities of the Company, or
      “derivative” securities based on securities issued by the Company or to hold the
      Securities for any specified term; (ii) that past or future open market or
      other
      transactions by any Purchaser, including Short Sales, and specifically
      including, without limitation, Short Sales or “derivative” transactions, before
      or after the closing of this or future private placement transactions, may
      negatively impact the market price of the Company’s publicly-traded securities;
      (iii) that any Purchaser, and counter parties in “derivative” transactions to
      which any such Purchaser is a party, directly or indirectly, presently may
      have
      a “short” position in the Common Stock, and (iv) that each Purchaser shall not
      be deemed to have any affiliation with or control over any arm’s length
      counter-party in any “derivative” transaction. 

     

    (gg) NO
      MANIPULATION OF STOCK. The Company has not and to its knowledge no one acting
      on
      its behalf has, in violation of applicable law, (i) taken (directly or
      indirectly), any action designed to or that might reasonably be expected to
      cause or result in stabilization or manipulation of the price of any security
      of
      the Company to facilitate the sale or resale of the Securities, (ii) sold,
      bid
      for, purchased, or paid any compensation for soliciting purchases of any of
      the
      Securities, other than the Placement Agents’ placement of the Securities, or
      (iii) paid or agreed to pay to any Person any compensation for soliciting
      another to purchase any other securities of the Company. The Company will not
      (and shall cause all Persons acting on its behalf to not) directly or indirectly
      do any of the foregoing.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (hh) SB-2
      STATUS. The Company meets the requirements for the use of Form SB-2 for the
      registration of the resale of the Shares by the Purchasers and will use its
      reasonable best efforts to maintain SB-2 status with the Commission during
      the
      period it is required by the Registration Agreement to maintain such
      registration of the resale of the Registrable Securities. To the knowledge
      of
      the Company, there exist no facts or circumstances that could reasonably be
      expected to prohibit or delay the preparation or initial filing of the
      Registration Statement that is required by the Registration Agreement to effect
      such registration.

     

    (ii) MATERIAL
      CONTRACTS. All material agreements to which the Company or any Subsidiary is
      a
      party and which are required to have been filed by the Company pursuant to
      the
      Securities Act or the Exchange Act have been filed by the Company with the
      Commission pursuant to the requirements of the Securities Act or the Exchange
      Act, as applicable. Each such agreement is in full force and effect and is
      binding on the Company or a Subsidiary, as applicable, and, to the Company’s
      knowledge, is binding upon such other parties, in each case in accordance with
      its terms, and neither the Company or a Subsidiary, as applicable, nor, to
      the
      Company’s knowledge, any other party thereto is in breach of or default under
      any such agreement, which breach or default would reasonably be expected to
      have
      a Material Adverse Effect. The Company has not received any written notice
      regarding the termination of any such agreements.

     

    3.2 REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASERS. Each Purchaser hereby, for itself and for
      no
      other Purchaser, represents and warrants as of the date hereof and as of the
      Closing Date to the Company as follows: 

     

    (a) ORGANIZATION;
      AUTHORITY. Such Purchaser is an entity duly organized, validly existing and
      in
      good standing under the laws of the jurisdiction of its organization with full
      right, corporate or partnership power and authority to enter into and to
      consummate the transactions contemplated by the Transaction Documents and
      otherwise to carry out its obligations thereunder. The execution, delivery
      and
      performance by such Purchaser of the transactions contemplated by this Agreement
      have been duly authorized by all necessary corporate or similar action on the
      part of such Purchaser. Each Transaction Document to which it is a party has
      been duly executed by such Purchaser, and when delivered by such Purchaser
      in
      accordance with the terms hereof, will constitute the valid and legally binding
      obligation of such Purchaser, enforceable against it in accordance with its
      terms, except (i) as limited by general equitable principles and applicable
      bankruptcy, insolvency, reorganization, moratorium and other laws of general
      application affecting enforcement of creditors’ rights generally, (ii) as
      limited by laws relating to the availability of specific performance, injunctive
      relief or other equitable remedies and (iii) insofar as indemnification and
      contribution provisions may be limited by applicable law. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (b) OWN
      ACCOUNT. Such Purchaser understands that the Securities being purchased by
      such
      Purchaser are “restricted securities” and have not been registered under the
      Securities Act or any applicable state securities law and is acquiring such
      Securities as principal for its own account and not with a view to or for
      distributing or reselling such Securities or any part thereof, has no present
      intention of distributing any of such Securities and has no arrangement or
      understanding with any other persons regarding the distribution of such
      Securities (this representation and warranty not limiting such Purchaser’s right
      to sell such Securities pursuant to a Registration Statement or otherwise in
      compliance with applicable federal and state securities laws). Such Purchaser
      is
      acquiring such Securities hereunder in the ordinary course of its business.
      Such
      Purchaser does not have any agreement or understanding, directly or indirectly,
      with any Person to distribute any of such Securities. 

     

    (c) PURCHASER
      STATUS. At the time such Purchaser was offered such Securities, it was, and
      at
      the date hereof it is, either: (i) an “accredited investor” as defined in Rule
      501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii)
      a
“qualified institutional buyer” as defined in Rule 144A(a) under the Securities
      Act. Such Purchaser is not registered as, or required to be registered as,
      a
      broker-dealer under Section 15 of the Exchange Act. Such Purchaser was not
      organized for the purpose of purchasing such Securities.

     

    (d) EXPERIENCE
      OF SUCH PURCHASER. Such Purchaser, either alone or together with its
      representatives, has such knowledge, sophistication and experience in business
      and financial matters so as to be capable of evaluating the merits and risks
      of
      the prospective investment in such Securities, and has so evaluated the merits
      and risks of such investment. Such Purchaser is able to bear the economic risk
      of an investment in such Securities and, at the present time, is able to afford
      a complete loss of such investment. 

     

    (e) GENERAL
      SOLICITATION. Such Purchaser is not purchasing such Securities as a result
      of
      any advertisement, article, notice or other communication regarding such
      Securities published in any newspaper, magazine or similar media or broadcast
      over television or radio or presented at any seminar or any other general
      solicitation or general advertisement. 

     

    (f) SHORT
      SALES. Such Purchaser has not directly or indirectly, nor has any Person acting
      on behalf of or pursuant to any understanding with such Purchaser, executed
      any
      Short Sales in the securities of the Company (including, without limitations,
      any Short Sales involving the Company’s securities) since __________, 2007,
      which was according to information provided by the Company, the earliest time
      that any Purchaser was first contacted regarding an investment in the Shares
      (“DISCUSSION TIME”). 

     

    (g) NO
      TAX,
      LEGAL, ETC. ADVICE. In evaluating the merits of an investment in the Shares,
      such Purchaser is not relying on the Company, the Placement Agents or their
      respective counsel for an evaluation of the business, tax, legal or other
      consequences of such an investment.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (h) ECONOMIC
      RISK. Such Purchaser understands that such Purchaser must bear the economic
      risk
      of investment for an indefinite period of time because the sale of the Shares
      has not been registered under the Securities Act pursuant to the exemption
      provided by Section 4(2) and Rule 506 thereunder, nor under any applicable
      state
      securities laws, and the Shares or any participation therein may not be sold
      or
      transferred in the absence of evidence satisfactory to the Company of compliance
      with applicable laws, including an opinion of counsel satisfactory to the
      Company that, among other things, the Shares have been registered under the
      Act
      and all applicable state securities laws or that such registrations are not
      required. The Company has made no agreement whatsoever to repurchase the Shares
      or, except as expressly provided in the Registration Agreement, to register
      the
      transfer of any portion of them under the Securities Act or under any state
      securities law.

     

    (i) ACCESS
      TO
      INFORMATION. Such Purchaser and its advisors were afforded full and complete
      access to all information with respect to the Company, its operations and the
      Shares that such Purchaser and such advisors deemed necessary to evaluate the
      merits and risks of an investment in the Shares, including the PPM and the
      SEC
      Reports, and Purchaser has had the opportunity to ask questions of and receive
      answers from the Company concerning this investment. Neither the Company nor
      the
      Placement Agents have made any representations about the value or performance
      of
      the Company or the Shares.

     

    (j) RULE
      144.
      Such Purchaser is aware of the provisions of Rule 144 under the Securities
      Act
      which permit limited resale of shares purchased in a private placement subject
      to the satisfaction of certain conditions, which may include, among other
      things, the existence of a public market for the shares, the availability of
      certain current public information about the Company, the resale occurring
      not
      less than one year after a party has purchased and paid for the security to
      be
      sold, the sale being effected through a “broker’s transaction” or in
      transactions directly with a “market maker” and the number of shares being sold
      during any three-month period not exceeding specified limitations. 

     

    (k) FORWARD
      LOOKING STATEMENTS. Such Purchaser acknowledges that information such Purchaser
      has received concerning the Company, including SEC Reports and oral statements,
      include forward-looking statements about the Company’s current and future
      business operations, financial projections and other matters. These statements
      speak only as of the date made, are not guarantees of future performance, and
      involve known and unknown risks and other factors that could cause actual
      results to be materially different from any future results expressed or implied
      by them. 

     

    (l) PLACEMENT
      AGENT FEES. Such Purchaser acknowledges that the Placement Agents will receive
      a
      placement fee of 6.5% of the aggregate Share Purchase Prices, and reimbursement
      of certain expenses up to $50,000, all payable by the Company and that the
      Company has agreed to indemnify the Placement Agents against certain
      liabilities, including liabilities in connection with the offering of the
      Shares.

     

    ARTICLE
      IV.

    OTHER
      AGREEMENTS OF THE PARTIES 

     

    4.1 TRANSFER
      RESTRICTIONS. 

     

    (a) The
      Securities may only be disposed of in compliance with state and federal
      securities laws. In connection with any transfer of Securities other than
      pursuant to an effective registration statement or Rule 144 or in connection
      with a pledge as contemplated in Section 4.1(b), the Company may require the
      transferor thereof to provide to the Company an opinion of counsel selected
      by
      the transferor and reasonably acceptable to the Company, the form and substance
      of which opinion shall be reasonably satisfactory to the Company, to the effect
      that such transfer does not require registration of such transferred Securities
      under the Securities Act. As a condition of transfer, any such transferee shall
      agree in writing to be bound by the terms of this Agreement and shall have the
      rights of a Purchaser under this Agreement. 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (b) The
      Purchasers agree to the imprinting, so long as is required by this Section
      4.1(b), of a legend on any of the Securities in the following form:

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
      INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE
      SECURITIES ACT. 

    

    The
      Company acknowledges and agrees that a Purchaser may from time to time pledge
      pursuant to a bona fide margin agreement with a registered broker-dealer or
      grant a security interest in some or all of the Securities to a financial
      institution that is an “accredited investor” as defined in Rule 501(a) under the
      Securities Act and who agrees to be bound by the provisions of this Agreement
      and, if required under the terms of such arrangement, such Purchaser may
      transfer pledged or secured Securities to the pledgees or secured parties.
      Such
      a pledge or transfer would not be subject to approval of the Company and no
      legal opinion of legal counsel of the pledgee, secured party or pledgor shall
      be
      required in connection therewith. Further, no notice shall be required of such
      pledge. At the appropriate Purchaser’s expense, the Company will execute and
      deliver such reasonable documentation as a pledgee or secured party of
      Securities may reasonably request in connection with a pledge or transfer of
      the
      Securities. 

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (c) Certificates
      evidencing the Shares shall not contain any legend (including the legend set
      forth in Section 4.1(b)), (i) while a registration statement covering the resale
      of such security is effective under the Securities Act, or (ii) following any
      sale of such Shares pursuant to Rule 144, or (iii) if such Shares are eligible
      for sale under Rule 144(k), 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) and
      such lack of requirement is confirmed by a legal opinion satisfactory to the
      Company; PROVIDED, HOWEVER, in connection with the sale of the Shares under
      the
      Registration Statement, each Purchaser, severally and not jointly with the
      other
      Purchasers, hereby agrees to adhere to and abide by all applicable prospectus
      delivery requirements under the Securities Act and rules and regulations of
      the
      Commission. The Company shall cause its counsel to issue a legal opinion to
      the
      Company’s transfer agent promptly after the Effective Date if required by the
      Company’s transfer agent to effect the removal of the legend hereunder. The
      Company agrees that following the Effective Date or at such time as such legend
      is no longer required under this Section 4.1(c), it will, no later than three
      Trading Days following the delivery by a Purchaser to the Company or the
      Company’s transfer agent of a certificate representing Shares issued with a
      restrictive legend (such date, the “LEGEND REMOVAL DATE”), deliver or cause to
      be delivered to such Purchaser a certificate representing such Securities that
      is free from all restrictive and other legends. The Company may not make any
      notation on its records or give instructions to any transfer agent of the
      Company that enlarge the restrictions on transfer set forth in this Section.
      Certificates for Securities subject to legend removal hereunder shall be
      transmitted by the transfer agent of the Company to each Purchaser by crediting
      the account of such Purchaser’s prime broker with the Depository Trust Company
      System. 

     

    (d) In
      addition to such Purchaser’s other available remedies, the Company shall pay to
      a Purchaser, in cash, as partial damages and not as a penalty, for each $1,000
      of Shares (based on the closing price of the Common Stock on the date such
      Securities are submitted to the Company’s transfer agent) subject to Section
      4.1(c), $10 per Trading Day (increasing to $20 per Trading Day five Trading
      Days
      after such damages have begun to accrue) for each Trading Day after the
      10th
      Trading
      Day after the Legend Removal Date until such certificate is delivered. Nothing
      herein shall limit such Purchaser’s right to pursue actual damages for the
      Company’s failure to deliver certificates representing any Securities as
      required by the Transaction Documents, and such Purchaser shall have the right
      to pursue all remedies available to it at law or in equity including, without
      limitation, a decree of specific performance and/or injunctive relief.

     

    (e) Each
      Purchaser, severally and not jointly with the other Purchasers, agrees that
      the
      removal of the restrictive legend from certificates representing Securities
      as
      set forth in this Section 4.1 is predicated upon the Company’s reliance that the
      Purchaser will sell any Securities pursuant to either the registration
      requirements of the Securities Act, including any applicable prospectus delivery
      requirements, or an exemption therefrom. 

     

    4.2 FURNISHING
      OF INFORMATION. As long as any Purchaser owns Securities, the Company covenants
      to timely file (or obtain extensions in respect thereof and file within the
      applicable grace period) all reports required to be filed by the Company after
      the date hereof pursuant to the Exchange Act. As long as any Purchaser owns
      Securities, if the Company is not required to file reports pursuant to the
      Exchange Act, it will prepare and furnish to the Purchasers and make publicly
      available in accordance with Rule 144(c) such information as is required for
      the
      Purchasers to sell the Securities under Rule 144. The Company further covenants
      that it will take such further action as any holder of Securities may reasonably
      request, all to the extent required from time to time to enable such Person
      to
      sell such Securities without registration under the Securities Act within the
      limitation of the exemptions provided by Rule 144. 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    4.3 INTEGRATION.
      The Company shall not sell, offer for sale or solicit offers to buy or otherwise
      negotiate in respect of any security (as defined in Section 2 of the Securities
      Act) that would be integrated with the offer or sale of the Securities in a
      manner that would require the registration under the Securities Act of the
      sale
      of the Securities to the Purchasers or that would be integrated with the offer
      or sale of the Securities for purposes of the rules and regulations of any
      Trading Market such that it would require shareholder approval prior to the
      closing of such other transaction unless shareholder approval is obtained before
      the closing of such subsequent transaction. 

     

    4.4 SECURITIES
      LAWS DISCLOSURE; PUBLICITY. The Company shall, by 8:30 a.m. Eastern time on
      the
      Trading Day following the date hereof, issue a Current Report on Form 8-K,
      reasonably acceptable to the Placement Agents disclosing the material terms
      of
      the transactions contemplated hereby, and shall attach the Transaction Documents
      thereto. The Company and each Purchaser shall consult with each other in issuing
      any other press release with respect to the transactions contemplated hereby,
      if
      such release names or otherwise identifies the other of them. The Company shall
      not publicly disclose the name of any Purchaser, or include the name of any
      Purchaser in any filing with the Commission or any regulatory agency or Trading
      Market, without the prior written consent of such Purchaser, except (i) as
      required by federal securities law in connection with a Registration Statement
      and (ii) to the extent such disclosure is required by law or Trading Market
      regulations, in which case the Company shall provide the Purchasers with prior
      notice of such disclosure permitted under subclause (ii). 

     

    4.5 SHAREHOLDER
      RIGHTS PLAN. No claim will be made or enforced by the Company or, to the
      knowledge of the Company, any other Person that any Purchaser is an “Acquiring
      Person” under any shareholder rights plan or similar plan or arrangement in
      effect or hereafter adopted by the Company, or that any Purchaser could be
      deemed to trigger the provisions of any such plan or arrangement, solely by
      virtue of receiving Securities under the Transaction Documents or under any
      other agreement between the Company and the Purchasers. The Company shall
      conduct its business in a manner so that it will not become subject to the
      Investment Company Act. 

     

    4.6 NON-PUBLIC
      INFORMATION. The Company covenants and agrees that neither it nor any other
      Person acting on its behalf will provide any Purchaser, or its agents or
      counsel, with any information that the Company believes constitutes material
      non-public information, unless prior thereto such Purchaser shall have executed
      a written agreement regarding the confidentiality and use of such information.
      The Company understands and confirms that each Purchaser shall be relying on
      the
      foregoing representations in effecting transactions in securities of the
      Company. The foregoing shall not apply to Purchasers who are directors,
      employees or current shareholders of the Company holding 5% or more of its
      capital stock. In the event of a breach by the Company of the covenant contained
      in the first sentence of this Section 4.6, in addition to any other remedy
      provided herein or in the other Transaction Documents, each Purchaser shall
      have
      the right to make a public disclosure, in the form of a press release, public
      advertisement or otherwise, of such material, non-public information without
      the
      prior approval by the Company, its Subsidiaries, or any of its or their
      respective officers, directors, employees or agents. No Purchaser shall have
      any
      liability to the Company, its Subsidiaries, or any of its or their respective
      officers, directors, employees, shareholders or agents for any such
      disclosure.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    4.7 USE
      OF
      PROCEEDS. The Company shall use the net proceeds from the sale of the Securities
      hereunder for capital expenditures related to drilling and development of oil
      and gas properties, and for other general corporate purposes. 

     

    4.8 SHORT
      SALES. Each Purchaser covenants that neither it nor any affiliates acting on
      its
      behalf or pursuant to any understanding with it will execute any Short Sales
      during the period commencing from the Discussion Time until the Effective Date
      unless such Short Sale complies with applicable law and does not cause any
      exemption from registration relied upon by the Company in issuing the Shares
      to
      be jeopardized or lost. Each Purchaser is aware that the Commission’s staff is
      of the view that covering a short position established prior to the effective
      date of a resale registration statement with shares included in such
      registration statement would violate Section 5 of the Securities Act, which
      view
      is expressed in Item 65, pertaining to Section 5, under Section A of the Manual
      of Publicly Available Telephone Interpretations, compiled by the Office of
      Chief
      Counsel, Division of Corporation Finance. Such Purchaser will not engage in
      any
      Short Sales that result in any disposition of such Purchaser’s Shares or any
      interest therein, except in compliance with the Securities Act, the rules and
      regulations thereunder, and applicable state securities laws.

     

    4.9 INDEMNIFICATION
      OF PURCHASERS. Subject to the provisions of this Section 4.9, the Company will
      indemnify and hold the Purchasers and all of their directors, officers,
      employees, shareholders, partners, members, and direct or indirect investors
      and
      any of the foregoing Person’s agents or other representatives (including,
      without limitation, those retained in connection with the transactions
      contemplated by this Agreement) (each, a “PURCHASER PARTY”) harmless from any
      and all losses, liabilities, obligations, claims, contingencies, damages, costs
      and expenses, including all judgments, amounts paid in settlements, court costs
      and reasonable attorneys’ fees and costs of investigation (collectively,
“LOSSES”) that any such Purchaser Party may suffer or incur as a result of or
      relating to any (a) breach of any of the representations, warranties, covenants
      or agreements made by the Company in this Agreement or in the other Transaction
      Documents or (b) cause of action, suit or claim brought or made against such
      Purchaser Party by a third party (including for these purposes a derivative
      action brought on behalf of the Company) and arising out of or resulting from
      the execution, delivery, performance or enforcement of the Transaction Documents
      or any other certificate, instrument or document contemplated hereby or thereby.
      If any action shall be brought against any Purchaser Party in respect of which
      indemnity may be sought pursuant to this Agreement, such Purchaser Party shall
      promptly notify the Company in writing, and the Company shall have the right
      to
      assume the defense thereof with counsel of its own choosing, who shall be
      reasonably satisfactory to such Purchaser Party. Any Purchaser Party shall
      have
      the right to employ separate counsel in any such action and participate in
      the
      defense thereof, but the fees and expenses of such counsel shall be at the
      expense of such Purchaser Party except to the extent that (i) the employment
      thereof has been specifically authorized by the Company in writing, (ii) the
      Company has failed after a reasonable period of time to assume such defense
      and
      to employ counsel reasonably satisfactory to such Purchaser Party or (iii)
      in
      such action there is, in the reasonable opinion of such separate counsel, a
      material conflict on any material issue between the position of the Company
      and
      the position of such Purchaser Party. The Company will not be liable to a
      Purchaser Party under this Section or otherwise under this Agreement to the
      extent that Losses for which the Company would otherwise be liable are
      attributable to a breach of any of the representations, warranties, covenants
      or
      agreements made in this Agreement or in the other Transaction Documents by
      such
      Purchaser Party or the Purchaser with which it is affiliated or associated.
      To
      the extent that the foregoing undertaking by the Company may be unenforceable
      for any reason, the Company shall make the maximum contribution to the payment
      and satisfaction of each of the Losses which is permissible under applicable
      law. Except as otherwise set forth herein, the mechanics and procedures with
      respect to the rights and obligations under this Section 4.9 shall be the same
      as those set forth in Sections 11 and 12 of the Registration
      Agreement.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    4.10 RESERVATION
      OF COMMON STOCK. The Company has reserved and the Company shall continue to
      reserve and keep available at all times, free of preemptive rights, a sufficient
      number of shares of Common Stock for the purpose of enabling the Company to
      issue Shares pursuant to this Agreement. 

     

    4.11 LISTING
      OF COMMON STOCK. The Company hereby agrees to use best efforts to maintain
      the
      listing of the Common Stock on a Trading Market, and as soon as reasonably
      practicable following the Closing (but not later than the earlier of the
      Effective Date and the first anniversary of the Closing Date) to list all of
      the
      Shares on such Trading Market. The Company further agrees, if the Company
      applies to have the Common Stock traded on any other Trading Market, it will
      include in such application all of the Shares, and will take such other action
      as is necessary to cause all of the Shares to be listed on such other Trading
      Market as promptly as possible. The Company will take all action reasonably
      necessary to continue the listing and trading of its Common Stock on a Trading
      Market and will comply in all respects with the Company’s reporting, filing and
      other obligations under the bylaws or rules of the Trading Market. 

     

    4.12 EQUAL
      TREATMENT OF PURCHASERS. No consideration shall be offered or paid to any person
      to amend or consent to a waiver or modification of any provision of any of
      the
      Transaction Documents unless the same consideration is also offered to all
      of
      the parties to the Transaction Documents. For clarification purposes, this
      provision constitutes a separate right granted to each Purchaser by the Company
      and negotiated separately by each Purchaser, and is intended for the Company
      to
      treat the Purchasers as a class and shall not in any way be construed as the
      Purchasers acting in concert or as a group with respect to the purchase,
      disposition or voting of Securities or otherwise. 

     

    4.13 DELIVERY
      OF SECURITIES AFTER CLOSING. The Company shall deliver, or cause to be
      delivered, the respective Shares purchased by each Purchaser to such Purchaser
      within three Trading Days after the Closing Date. 

     

    4.14 LIMITATION
      OF LIABILITY. Notwithstanding anything herein to the contrary, the Company
      acknowledges and agrees that the liability of each Purchaser arising directly
      or
      indirectly, under this Agreement or the Registration Agreement of any and every
      nature whatsoever shall be satisfied solely out of the assets of such Purchaser,
      and that no trustee, officer, other investment vehicle or any other affiliate
      of
      such Purchaser or any subscriber, shareholder or holder of shares of beneficial
      interest of such Purchaser shall be personally liable for any liabilities of
      such Purchaser; provided, however, that such limitation of liability shall
      not
      apply to acts of fraud by such trustee, officer, affiliate, subscriber,
      shareholder or holder of beneficial interests of such Purchaser.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    4.15 FORM
      D
      AND BLUE SKY. The Company agrees to file a Form D with respect to the Securities
      as required under Regulation D promulgated under the Securities Act and to
      promptly provide a copy thereof to each Purchaser who requests a copy after
      such
      filing. The Company, on or before the Closing Date, shall take such action
      as
      the Company shall reasonably determine is necessary in order to obtain an
      exemption for or to qualify the Securities for sale to the Purchasers at the
      Closing pursuant to this Agreement under applicable securities or “blue sky”
laws of the states of the United States (or to obtain an exemption from such
      qualification), and, if requested by a Purchaser, shall provide evidence of
      any
      such action so taken. The Company shall make all filings and reports relating
      to
      the offer and sale of the Securities required under applicable securities or
      “blue sky” laws of the states of the United States following the Closing
      Date.

     

    4.16 REPORTING
      STATUS. Until the date on which the Investors (as defined in the Registration
      Agreement) shall have sold all the Registrable Securities, the Company shall
      timely file all reports required to be filed with the Commission pursuant to
      the
      Exchange Act, and the Company shall not terminate its status as an issuer
      required to file reports under the Exchange Act even if the Exchange Act or
      the
      rules and regulations thereunder would otherwise permit such
      termination.

     

    4.17 ADDITIONAL
      REGISTRATION STATEMENTS. Until the Effective Date, the Company will not file
      a
      registration statement under the Securities Act relating to securities that
      are
      not the Registrable Securities.

     

    ARTICLE
      V.

    MISCELLANEOUS
      

     

    5.1 TERMINATION.
      This Agreement may be terminated by any Purchaser, as to such Purchaser’s
      obligations hereunder only and without any effect whatsoever on the obligations
      between the Company and the other Purchasers, by written notice to the other
      parties, if the Closing has not been consummated on or before __________, 2007;
      PROVIDED, HOWEVER, that no such termination will affect the right of any party
      to sue for any breach by the other party (or parties). 

     

    5.2 FEES
      AND
      EXPENSES. Except as otherwise set forth in this Agreement, each party shall
      pay
      the fees and expenses of its advisers, counsel, accountants and other experts,
      if any, and all other expenses incurred by such party incident to the
      negotiation, preparation, execution, delivery and performance of this Agreement.
      The Company shall pay all stamp and other taxes and duties levied in connection
      with the delivery of the Securities. 

     

    5.3 ENTIRE
      AGREEMENT. The Transaction Documents, together with the exhibits and schedules
      thereto, contain the entire understanding of the parties with respect to the
      subject matter hereof and supersede all prior agreements and understandings,
      oral or written, with respect to such matters, which the parties acknowledge
      have been merged into such documents, exhibits and schedules. 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    5.4 NOTICES.
      Any and all notices or other communications or deliveries required or permitted
      to be provided hereunder shall be in writing and shall be deemed given and
      effective on the earliest of (a) the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number set forth
      on
      the signature pages attached hereto prior to 5:30 p.m. (New York City time)
      on a
      Trading Day, (b) the next Trading Day after the date of transmission, if such
      notice or communication is delivered via facsimile at the facsimile number
      set
      forth on the signature pages attached hereto on a day that is not a Trading
      Day
      or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
      Trading Day following the date of mailing, if sent by U.S. nationally recognized
      overnight courier service, or (d) upon actual receipt by the party to whom
      such
      notice is required to be given. The address for such notices and communications
      shall be as set forth on the signature pages hereto. 

     

    5.5 AMENDMENTS;
      WAIVERS. No provision of this Agreement may be waived or amended except in
      a
      written instrument signed, in the case of an amendment, by the Company and
      each
      Purchaser or, in the case of a waiver, by the party against whom enforcement
      of
      any such waiver is sought. No waiver of any default with respect to any
      provision, condition or requirement of this Agreement shall be deemed to be
      a
      continuing waiver in the future or a waiver of any subsequent default or a
      waiver of any other provision, condition or requirement hereof, nor shall any
      delay or omission of either party to exercise any right hereunder in any manner
      impair the exercise of any such right. 

     

    5.6 HEADINGS.
      The headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party. 

     

    5.7 SUCCESSORS
      AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit
      of
      the parties and their successors and permitted assigns. The Company may not
      assign this Agreement or any rights or obligations hereunder without the prior
      written consent of each Purchaser, not to be unreasonably withheld or delayed.
      Any Purchaser may assign any or all of its rights under this Agreement to any
      Person to whom such Purchaser assigns or transfers any Securities, provided
      such
      transferee agrees in writing to be bound, with respect to the transferred
      Securities, by the provisions hereof that apply to the “Purchasers”, including
      the representations and warranties of Section 3.2, to the extent reasonably
      required by the Company. 

     

    5.8 NO
      THIRD-PARTY BENEFICIARIES. This Agreement is intended for the benefit of the
      parties hereto and their respective successors and permitted assigns and is
      not
      for the benefit of, nor may any provision hereof be enforced by, any other
      Person, except as otherwise set forth in Section 4.9. 

     

    5.9 GOVERNING
      LAW. All questions concerning the construction, validity, enforcement and
      interpretation of the Transaction Documents shall be governed by and construed
      and enforced in accordance with the internal laws of the State of New York,
      without regard to the principles of conflicts of law thereof. The parties hereby
      waive all rights to a trial by jury. If any party shall commence an action
      or
      proceeding to enforce any provisions of the Transaction Documents, then the
      prevailing party in such action or proceeding shall be reimbursed by the other
      party for its attorneys’ fees and other costs and expenses incurred with the
      investigation, preparation and prosecution of such action or proceeding.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    5.10 SURVIVAL.
      The representations and warranties herein shall survive the Closing and delivery
      of the Shares. 

     

    5.11 EXECUTION.
      This Agreement may be executed in two or more counterparts, all of which when
      taken together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission, such signature shall create a valid and binding obligation of
      the
      party executing (or on whose behalf such signature is executed) with the same
      force and effect as if such facsimile signature page were an original thereof.
      

     

    5.12 SEVERABILITY.
      If any provision of this Agreement is held to be invalid or unenforceable in
      any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement. 

     

    5.13 RESCISSION
      AND WITHDRAWAL RIGHT. Notwithstanding anything to the contrary contained in
      (and
      without limiting any similar provisions of) the Transaction Documents, whenever
      any Purchaser exercises a right, election, demand or option under the
      Transaction Documents and the Company does not timely perform its related
      obligations within the periods therein provided, then such Purchaser may rescind
      or withdraw, in its sole discretion from time to time upon written notice to
      the
      Company, any relevant notice, demand or election in whole or in part without
      prejudice to its future actions and rights. 

     

    5.14 REPLACEMENT
      OF SECURITIES. If any certificate or instrument evidencing any Securities is
      mutilated, lost, stolen or destroyed, the Company shall issue or cause to be
      issued in exchange and substitution for and upon cancellation thereof, or in
      lieu of and substitution therefor, a new certificate or instrument, but only
      upon receipt of evidence reasonably satisfactory to the Company of such loss,
      theft or destruction and customary and reasonable indemnity, if requested.
      The
      applicants for a new certificate or instrument under such circumstances shall
      also pay any reasonable third-party costs associated with the issuance of such
      replacement Securities. 

     

    5.15 REMEDIES.
      In addition to being entitled to exercise all rights provided herein or granted
      by law, including recovery of damages, each of the Purchasers and the Company
      will be entitled to specific performance under the Transaction Documents. The
      parties agree that monetary damages may not be adequate compensation for any
      loss incurred by reason of any breach of obligations described in the foregoing
      sentence and hereby agrees to waive in any action for specific performance
      of
      any such obligation the defense that a remedy at law would be adequate.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    5.16 PAYMENT
      SET ASIDE. To the extent that the Company makes a payment or payments to any
      Purchaser pursuant to any Transaction Document or a Purchaser enforces or
      exercises its rights thereunder, and such payment or payments or the proceeds
      of
      such enforcement or exercise or any part thereof are subsequently invalidated,
      declared to be fraudulent or preferential, set aside, recovered from, disgorged
      by or are required to be refunded, repaid or otherwise restored to the Company,
      a trustee, receiver or any other person under any law (including, without
      limitation, any bankruptcy law, state or federal law, common law or equitable
      cause of action), then to the extent of any such restoration the obligation
      or
      part thereof originally intended to be satisfied shall be revived and continued
      in full force and effect as if such payment had not been made or such
      enforcement or setoff had not occurred. 

     

    5.17 INDEPENDENT
      NATURE OF PURCHASERS’ OBLIGATIONS AND RIGHTS. The obligations of each Purchaser
      under any Transaction Document are several and not joint with the obligations
      of
      any other Purchaser, and no Purchaser shall be responsible in any way for the
      performance of the obligations of any other Purchaser under any Transaction
      Document. The decision of each Purchaser to purchase Securities pursuant to
      the
      Transaction Documents has been made by such Purchaser independently of any
      other
      Purchasers. Nothing contained herein or in any Transaction Document, and no
      action taken by any Purchaser pursuant thereto, shall be deemed to constitute
      the Purchasers as a partnership, an association, a joint venture or any other
      kind of group or entity, or create a presumption that the Purchasers are in
      any
      way acting in concert or as a group with respect to such obligations or the
      transactions contemplated by the Transaction Documents, and the Company
      acknowledges that the Purchasers are not acting in concert or as a group with
      respect to such obligations or the transactions contemplated by the Transaction
      Documents. Each Purchaser shall be entitled to independently protect and enforce
      its rights, including without limitation, the rights arising out of this
      Agreement or out of the other Transaction Documents, and it shall not be
      necessary for any other Purchaser to be joined as an additional party in any
      proceeding for such purpose. Each Purchaser has been represented by its own
      separate legal counsel in their review and negotiation of the Transaction
      Documents. The Company has elected to provide all Purchasers with the same
      terms
      and Transaction Documents for the convenience of the Company and not because
      it
      was required or requested to do so by any of the Purchasers. 

     

    5.18 PARTIAL
      DAMAGES. The Company’s obligations to pay any partial damages or other amounts
      owing under the Transaction Documents is a continuing obligation of the Company
      and shall not terminate until all unpaid partial damages and other amounts
      have
      been paid notwithstanding the fact that the instrument or security pursuant
      to
      which such partial damages or other amounts are due and payable shall have
      been
      canceled. 

     

    5.19 CONSTRUCTION.
      The parties agree that each of them and/or their respective counsel has reviewed
      and had an opportunity to revise the Transaction Documents and, therefore,
      the
      normal rule of construction to the effect that any ambiguities are to be
      resolved against the drafting party shall not be employed in the interpretation
      of the Transaction Documents or any amendments hereto. 

     

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first indicated above. 

    

    

    TRIANGLE
      PETROLEUM CORPORATION

    

    

    By:
      __________________________      

    Name:
      __________________________  

    Title:  
      __________________________

    

    

    Address
      for Notice:

    

    Triangle
      Petroleum Corporation

    521-3
      SW,
      Suite 1110

    Calgary,
      Alberta

    Canada
      T2P 3T3

    Attention:
      Mr. Mark G. Gustafson

    President,
      CEO, & Chairman

    Fax:
      (604) 688-1320

    

    

    With
      a
      copy to (which shall not constitute notice):

    

    Sichenzia
      Ross
      Friedman
      Ference
      LLP

    1065
      Avenue of the Americas

    New
      York,
      NY 10118

    Attention:
      Mr. Thomas Rose

    Fax:
      (212) 930-9725

    

    

    

    

    

    [SIGNATURE
      PAGES FOR PURCHASERS FOLLOW]

     

    
 

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    [PURCHASER
      SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT] 

    

    IN
      WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement
      to be duly executed by its authorized signatory as of the date first indicated
      above. 

    

    

    

    Name
      of
      Purchaser: _________________________

    

    By:
      ______________________________________

    Name:
      ______________________________

    Title:
      _______________________________

    

    Address
      for Notice to Purchaser: 

    

    ______________________________

    ______________________________

    ______________________________

    Fax:
      __________________________

    

    

    Address
      for Delivery of Securities for Purchaser (if not same as above): 

    

    ______________________________

    ______________________________

    ______________________________

    

    

    Subscription
      Amount: $_________________

    Shares:
      ___________

    

    

    Purchaser
      is one or more of the following (check all that apply):

    

    
      	 	
              (i)

            	
              a
                bank or savings and loan association.
□

            

    

     

    
      	 	
              (ii)

            	
              an
                insurance company. □

            

    

     

    
      	 	
              (iii)

            	
              an
                investment company registered under the Investment Company Act of
                1940 or
                a business development company as defined in section 2(a)(48) of
                that Act.
                □

            

    

     

    
      	 	
              (iv)

            	
              a
                Small Business Investment Company licensed by the U.S. Small Business
                Administration. □

            

    

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (v)

            	
              a
                plan established and maintained by a state or, its political subdivisions
                for the benefit of its employees, with total assets over $5,000,000.
                □

            

    

     

    
      	 	
              (vi)

            	
              an
                employee benefit plan within the meaning of the Employee Retirement
                Income
                Security Act of 1974 (A) the investment decisions for which are made
                by a
                plan fiduciary, which is either a bank, savings and loan association,
                insurance company, or registered investment adviser, or (B) which
                has
                total assets over $5,000,000, or (C) if a self-directed plan, the
                investment decisions for which are made solely by persons that are
                described in subsections (g)(i) through (vi) and (g)(viii) through
                (g)(xv). □

            

    

     

    
      	 	
              (vii)

            	
              a
                private business development company as defined in the Investment
                Advisers
                Act of 1940. □

            

    

     

    
      	 	
              (viii)

            	
              an
                organization described in section 501(c)(3) of the Internal Revenue
                Code,
                a corporation, Massachusetts or similar business trust, or a partnership,
                not formed for the specific purpose of acquiring the Shares, with
                total
                assets over $5,000,000. □

            

    

     

    
      	 	
              (ix)

            	
              a
                trust, with total assets over $5,000,000, not formed for the specific
                purpose of acquiring the securities offered, whose purchase is directed
                by
                a sophisticated person. □

            

    

     

    
      	 	
              (x)

            	
              a
                director or executive officer of the Company.
□

            

    

     

    
      	 	
              (xi)

            	
              a
                natural person whose individual net worth, or joint net worth with
                such
                person’s spouse, exceeds $1,000,000.
□

            

    

     

    
      	 	
              (xii)

            	
              a
                natural person who had an individual income over $200,000 in each
                of 2004
                and 2005 or joint income with such person’s spouse in excess of $300,000
                in each of those years and who has a reasonable expectation of reaching
                the same income level in 2005. □

            

    

     

    
      	 	
              (xiii)

            	
              an
                entity in which all of the equity owners are persons or entities
                in the
                above categories and which has not been organized for the specific
                purpose
                of making an investment in the Shares.
□

            

    

     

    
      	 	
              (xiv)

            	
              none
                of the above. □

            

    

     

    Purchaser’s
      EIN Number is: _________________

    

    
      
        
        

      

      
        29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]