Document:

Exhibit  10.1

Exhibit 10.1
Execution Version

Deutsche Bank 

Deutsche Bank AG, London Branch
Winchester house
1 Great Winchester St, 
London EC2N 2DB 
Telephone:  44 20 7545 8000

c/o Deutsche Bank Securities Inc.
60 Wall Street
New York, NY 10005
Telephone: (212) 250-2500

DATE:    September 3, 2014

TO:    NorthStar Realty Finance Corp.
399 Park Avenue, 18th Floor
New York, NY 10022 
ATTENTION:    Albert Tylis, President    
FACSIMILE:    01 212 547 2600

FROM:    Deutsche Bank AG, London Branch
TELEPHONE:    44 20 7545 0556
FACSIMILE:    44 11 3336 2009

SUBJECT:    Registered Forward Transaction

REFERENCE NUMBER(S):    597527

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between Deutsche Bank AG, London Branch (“Deutsche”) and NorthStar Realty Finance Corp. (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  This Confirmation constitutes the entire agreement and understanding of the parties with respect to the subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and oral communications with respect thereto.
DEUTSCHE BANK AG, LONDON BRANCH IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  DEUTSCHE BANK SECURITIES INC. (“DBSI”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION.  AS SUCH, ALL DELIVERY OF FUNDS, ASSETS, NOTICES, DEMANDS AND COMMUNICATIONS OF ANY KIND RELATING TO THIS TRANSACTION BETWEEN DEUTSCHE BANK AG, LONDON BRANCH, AND COUNTERPARTY SHALL BE TRANSMITTED EXCLUSIVELY THROUGH DEUTSCHE BANK SECURITIES INC.  DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

	
		
	Chairman of the Supervisory Board:  Dr. Paul Achleitner.  

Management Board:  Jürgen Fitschen (Co-Chairman), Anshu Jain (Co-Chairman), Stefan Krause, Stephan Leithner, Stuart Lewis, Rainer Neske and Henry Ritchotte.
      
	Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin – Federal Financial Supervising Authority) and by the Prudential Regulation Authority and subject to limited regulation by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG, London Branch is a member of the London Stock Exchange. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am Main; Branch Registration in England and Wales BR000005; Registered address: Winchester House, 1 Great Winchester Street, London EC2N 2DB. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available on request or from https://www.db.com/en/content/eu_disclosures_uk.htm.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern.
Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below.
This Confirmation evidences a complete and binding agreement between Deutsche and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the ISDA 2002 Master Agreement (the “Agreement”) as if Deutsche and Counterparty had executed an agreement in such form (without any Schedule except for the election of United States dollars (“USD”) as the Termination Currency and such other elections set forth in this Confirmation).  In the event of any inconsistency between the provisions of the Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates.  The parties hereby agree that, other than the Transaction to which this Confirmation relates, no other Transaction shall be governed by the Agreement.  The parties also acknowledge that the Transaction to which this Confirmation relates is not governed by, and shall not be treated as a Transaction under, any other ISDA Master Agreement entered into between Deutsche and Counterparty from time to time.
	
		
	The terms of the particular Transaction to which this Confirmation relates are as follows:

	General Terms:
	 

	Trade Date:
	September 3, 2014

	Effective Date:
	September 9, 2014

	Seller:
	Counterparty

	Buyer:
	Deutsche

	Shares:
	The common stock of Counterparty, par value USD 0.01 per share (Ticker Symbol: “NRF”)

	Number of Shares:
	Initially 22,500,000 Shares; provided, that (i) the Number of Shares shall be increased on each Date of Delivery (as defined in the Underwriting Agreement (as defined below)) by the number of Borrowed Option Shares (as such term is defined in the Underwriting Agreement) purchased by the Underwriters (as such term is defined in the Underwriting Agreement) pursuant to Section 1(b) of the Underwriting Agreement (the “Additional Shares”); (ii) the Number of Shares shall be reduced by the number of Company Top-Up Initial Shares (as defined in the Underwriting Agreement); and (iii) on each Settlement Date, the Number of Shares shall be reduced by the number of Settlement Shares settled on such date.  

	Initial Forward Price:
	USD 17.95 per Share

	Forward Price:
	(a)   On the Effective Date, the Initial Forward Price; and

	
			
	 
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	(b)   on each calendar day thereafter, the Forward Price as of the immediately preceding calendar day multiplied by the sum of (i) 1 and (ii) the Daily Rate for such day; provided that, on each Forward Price Reduction Date, the Forward Price in effect on such date shall be the Forward Price otherwise in effect on such date minus the Forward Price Reduction Amount for such Forward Price Reduction Date; provided further that, if the Number of Shares is increased in respect of any Borrowed Option Shares, the Forward Price shall be adjusted by the Calculation Agent on the Date of Delivery for such Borrowed Option Shares to account for the fact that this clause (b) shall not apply prior to such Date of Delivery with respect to the number of Shares by which the Number of Shares has been so increased.

	Daily Rate:
	For any day, a rate (which may be positive or negative) equal to (i) (a) USD-Federal Funds Rate for such day minus (b) the Stock Loan Rate divided by (ii) 365.

	USD-Federal Funds Rate:
	For any day, the rate set forth for such day opposite the caption “Federal funds”, as such rate is displayed on the page “FedsOpen <Index> <GO>” on the BLOOMBERG Professional Service, or any successor page; provided that if no rate appears for a particular day on such page, the rate for the immediately preceding day for which a rate does so appear shall be used for such day.

	Stock Loan Rate:
	The stock loan cost (expressed as a rate) for the Shares incurred from time to time by Deutsche as determined by Deutsche.  On a periodic basis, but no less frequently than once per month, Deutsche will provide to Counterparty, by e-mail to the e-mail address provided by Counterparty herein, a report (in a commonly used file format for the storage and manipulation of financial data), in reasonable detail, of its determination of the Stock Loan Rate for the preceding period; provided that Deutsche shall not be obligated to disclose any information used by it for such determination that it reasonably determines is proprietary or confidential.

	Prepayment:
	Not Applicable

	Forward Price Reduction Dates:
	The record date for any payment of a cash dividend by Counterparty.

	 
	 

	Forward Price Reduction Amount:
	For each Forward Price Reduction Date, USD 0.40.

	Exchange:
	The New York Stock Exchange

	Related Exchange(s):
	All Exchanges

	Clearance System:
	The Depository Trust Company

	Market Disruption Event:
	Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “during the one hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be,” in clause (ii) thereof, and by replacing the words “or (iii) an Early Closure.” with “(iii) an Early Closure or (iv) a Regulatory Disruption, in each case that the Calculation Agent determines is material.”

	
			
	 
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	Early Closure:
	Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.

	Settlement:
	 

	Settlement Currency:
	USD (all amounts shall be converted to the Settlement Currency in good faith and in a commercially reasonable manner by the Calculation Agent)

	Settlement Date:
	Any Scheduled Trading Day following the Effective Date up to and including the Final Date that is either:
(a)   designated by Counterparty as a “Settlement Date” by a written notice (a “Settlement Notice”) delivered to Deutsche (i) no later than 10:00 a.m. (New York City time) on the Scheduled Trading Day preceding the Settlement Date, if Physical Settlement applies, and (ii) no less than a number of Scheduled Trading Days equal to (x) the number of Settlement Shares divided by 900,000, plus (y) three (rounded up to the nearest integer in the event such calculation results in a fractional number) prior to such Settlement Date, which may be the Final Date, if Cash Settlement or Net Stock Settlement applies; provided that, if Cash Settlement or Net Stock Settlement applies, any Settlement Date, including a Settlement Date on the scheduled Final Date, shall be deferred until the third Scheduled Trading Day following the date on which Deutsche is able to completely unwind its hedge with respect to the Settlement Shares if Deutsche is unable to completely unwind its hedge with respect to the Settlement Shares during the Unwind Period due to a Market Disruption Event or Liquidity Event; provided further that, if Deutsche shall fully unwind its hedge with respect to the Settlement Shares during an Unwind Period by a date that is more than three Scheduled Trading Days prior to a Settlement Date specified above, Deutsche may, by written notice to Counterparty, specify any Scheduled Trading Day prior to such original Settlement Date as the Settlement Date; or
 (b)   designated by Deutsche as a Settlement Date pursuant to the “Acceleration Events” provisions below; 
provided that the Final Date will be a Settlement Date if on such date the Number of Shares for which a Settlement Date has not already been designated is greater than zero; provided further that, if any Settlement Date specified above is not an Exchange Business Day, the Settlement Date shall instead be the next Exchange Business Day; and provided further that, following the occurrence of at least three consecutive Suspension Days during an Unwind Period and while such Suspension Days are continuing, Deutsche may designate any subsequent Exchange Business Day as the Settlement Date with respect to the portion of the Settlement Shares, if any, for which Deutsche has determined an Unwind Purchase Price during such Unwind Period, it being understood that the Unwind Period with respect to the remainder of such Settlement Shares shall recommence on the next succeeding Exchange Business Day that is not a Suspension Day.

	
			
	 
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	Final Date:
	March 4, 2015 (or if such day is not a Scheduled Trading Day, the next following Scheduled Trading Day)

	Regulatory Disruption:
	A “Regulatory Disruption” shall occur if Deutsche determines in its reasonable discretion, based on the advice of outside counsel of national standing, that it is appropriate in light of legal, regulatory or self-regulatory requirements or related policies or procedures that generally apply to transactions of a nature and kind similar to the Transaction for it to refrain from all or any part of the market activity in which it would otherwise engage in connection with the Transaction, including without limitation as a result of restrictions set forth under Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Deutsche shall notify Counterparty if it makes any such determination based on advice of outside counsel of national standing within two Scheduled Trading Days of making such determination.

	Liquidity Event:
	A “Liquidity Event” shall occur if Deutsche determines on any day the trading volume or liquidity of trading in the Shares is materially reduced from levels prevailing on the Trade Date.

	Settlement Shares:
	(a)   With respect to any Settlement Date other than the Final Date, the number of Shares designated as such by Counterparty in the relevant Settlement Notice or designated pursuant to the “Acceleration Events” provisions below, as applicable; provided that the Settlement Shares so designated shall (i) not exceed the Number of Shares at that time and (ii) be at least equal to the lesser of 1,000,000 and the Number of Shares at that time; and 

	 
	(b)   with respect to the Settlement Date on the Final Date, a number of Shares equal to the Number of Shares at that time;

	 
	in each case with the Number of Shares determined taking into account pending Settlement Shares.

	Settlement Method Election:
	Physical Settlement, Cash Settlement or Net Stock Settlement, at the election of Counterparty, in its sole discretion, as set forth in a Settlement Notice; provided that, if Counterparty elects Cash Settlement or Net Stock Settlement, it shall be deemed to have repeated the representations contained under “Securities Laws Representations and Agreements” below; provided further that Physical Settlement shall apply (i) if no Settlement Method is validly selected, (ii) to any Settlement Shares with respect to which Deutsche does not unwind its hedge positions prior to the Final Date as a result of a Regulatory Disruption or a Liquidity Event or (iii) to any Settlement Date designated by Deutsche pursuant to “Acceleration Events” below.

	Physical Settlement:
	If Physical Settlement is applicable, then Counterparty shall deliver to Deutsche through the Clearance System a number of Shares equal to the Settlement Shares for such Settlement Date, and Deutsche shall pay to Counterparty, by transfer of immediately available funds to an account designated by Counterparty, an amount equal to the Physical Settlement Amount for such Settlement Date, on a delivery versus payment basis.

	Physical Settlement Amount:
	For any Settlement Date for which Physical Settlement is applicable, an amount in cash equal to the product of (a) the Forward Price in effect on such Settlement Date multiplied by (b) 0.995, multiplied by (c) the Settlement Shares for such Settlement Date.

	
			
	 
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	Cash Settlement:
	On any Settlement Date in respect of which Cash Settlement applies, if the Cash Settlement Amount is (i) a positive number, Deutsche will pay the Cash Settlement Amount to Counterparty by transfer of immediately available funds to an account designated by Counterparty and (ii) if the Cash Settlement Amount is a negative number, Counterparty will pay the absolute value of the Cash Settlement Amount to Deutsche by transfer of immediately available funds to an account designated by Deutsche.  Such amounts shall be paid on such Settlement Date.

	Cash Settlement Amount:
	An amount determined by the Calculation Agent equal to: (i)(A) the weighted  average (weighted on the same basis as clause (C)) of the Forward Prices on each day during the applicable Unwind Period (calculated assuming no reduction to the Forward Price for any Forward Price Reduction Date that occurs during such Unwind Period, it being understood, for the avoidance of doubt, that the related Forward Price Reduction Amount(s) shall be accounted for pursuant to clause (iii) below) multiplied by (B) 0.995, minus (C) the weighted average price (the “Unwind Purchase Price”) at which Deutsche purchases Shares during the Unwind Period to unwind its hedge with respect to the portion of the Number of Shares to be settled during the Unwind Period (including, for the avoidance of doubt, purchases on any Suspension Day or Disrupted Day in part), taking into account Shares anticipated to be delivered or received if Net Stock Settlement applies, and the restrictions of Rule 10b-18 under the Exchange Act agreed to hereunder, multiplied by (ii) the Settlement Shares for such Settlement Date minus (iii) the product of (A) the Forward Price Reduction Amount for any Forward Price Reduction Date that occurs during such Unwind Period and (B) the number of Settlement Shares with respect to which Deutsche has not unwound its hedge, including the settlement of such unwinds, as of such Forward Price Reduction Date.

	Net Stock Settlement:
	On any Settlement Date in respect of which Net Stock Settlement applies, if the Cash Settlement Amount is a (i) positive number, Deutsche shall deliver a number of Shares to Counterparty equal to the Net Stock Settlement Shares, or (ii) negative number, Counterparty shall deliver a number of Shares to Deutsche equal to the Net Stock Settlement Shares; provided that, if Deutsche determines in its good faith judgment that it would be required to deliver Net Stock Settlement Shares to Counterparty, Deutsche may elect to deliver a portion of such Net Stock Settlement Shares on one or more dates prior to the applicable Settlement Date. In no event will Counterparty be required to return any Net Stock Settlement Shares that Deutsche has delivered to it pursuant to the proviso to the immediately preceding sentence.

	Net Stock Settlement Shares:
	With respect to a Settlement Date, the absolute value of the Cash Settlement Amount divided by the Unwind Purchase Price, with the number of Shares rounded up in the event such calculation results in a fractional number.

	Unwind Period:
	The period from and including the first Exchange Business Day following the date Counterparty elects Cash Settlement or Net Stock Settlement in respect of a Settlement Date through the third Scheduled Trading Day preceding such Settlement Date (as such date may be changed by Deutsche as described in the first proviso in clause (a) of the definition of Settlement Date above and provided that Deutsche may truncate any Unwind Period pending (and reduce the Settlement Shares for such Unwind Period to the portion thereof, if any, for which Deutsche has determined an Unwind Purchase Price) at the time Deutsche designates a Settlement Date pursuant to the “Acceleration Events” provisions below, effective upon such designation).

	
			
	 
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	Suspension Day:
	Any Scheduled Trading Day on which Deutsche reasonably determines based on the advice of outside counsel of national standing that it is appropriate or necessary in light of legal, regulatory or self-regulatory requirements or related policies or procedures for Deutsche to refrain from the market activity in which it would otherwise engage in connection its hedge positions with respect to the Transaction on such day, including without limitation as a result of restrictions set forth under Rule 10b-18 of the Exchange Act. Deutsche shall notify Counterparty within two Scheduled Trading Days of making any such determination.

	Share Cap:
	In no event will Counterparty be required to deliver to Deutsche on any Settlement Date, whether pursuant to Physical Settlement, Net Stock Settlement, any Private Placement Settlement or any Registration Settlement, a number of Shares in excess of (i) (A) 45,000,000 Shares plus (B) the number of Additional Shares multiplied by 2, subject to adjustment from time to time in accordance with the provisions of this Confirmation or the Equity Definitions minus (ii) the aggregate number of Shares delivered by Counterparty to Deutsche hereunder prior to such Settlement Date.

	Adjustments:
	 

	Method of Adjustment:
	Calculation Agent Adjustment

	Extraordinary Events:
	 

	New Shares:
	In the definition of New Shares in Section 12.1(i) of the Equity Definitions, the text in (i) shall be deleted in its entirety and replaced with “publicly quoted, traded or listed on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors)”.

	Consequences of Merger Events:
	 

	(a)   Share-for-Share:
	Calculation Agent Adjustment

	(b)   Share-for-Other:
	Cancellation and Payment

	(c)   Share-for-Combined:
	Component Adjustment

	Tender Offer:
	Applicable

	Consequences of Tender Offers:
	 

	(a)   Share-for-Share:
	Calculation Agent Adjustment

	(b)   Share-for-Other:
	Calculation Agent Adjustment

	(c)   Share-for-Combined:
	Calculation Agent Adjustment

	Composition of Combined Consideration:
	As reasonably determined by the Calculation Agent.

	
			
	 
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	Nationalization, Insolvency or Delisting:
	Subject to “Insolvency Filing” below, Cancellation and Payment

	 
	In addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to be the Exchange.

	Determining Party:
	For all applicable Extraordinary Events, Deutsche; provided that all calculations, adjustments, specifications, choices and determinations by the Determining Party shall be made in good faith and in a commercially reasonable manner. The parties agree that they will work reasonably to resolve any disputes.

	Additional Disruption Events:
	 

	Change in Law:
	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “or announcement or statement of the formal or informal interpretation”, (ii) immediately following the words “taxing authority)” in clause (A) thereof, adding the phrase “, in each case, the application of which directly or indirectly affects the Transaction or equity derivative transactions with substantially similar characteristics”, (iii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date” and (iv) replacing the word “Shares” with “Hedge Positions” in clause (X) thereof.
The parties agree that (A) any determination as to whether (i) the adoption of or any change in any applicable law or regulation (including, without limitation, any tax law) or (ii) the promulgation of or any change in or announcement or statement of the formal or informal interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority, in each case, the application of which directly or indirectly affects the Transaction or equity derivative transactions with substantially similar characteristics), in each case, constitutes a “Change in Law” shall be made without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date.

	Failure to Deliver:
	Applicable only if the Settlement Method is Net Stock Settlement and the Cash Settlement Amount is a positive number.

	Insolvency Filing:
	Notwithstanding anything to the contrary herein, in the Agreement or in the Equity Definitions, upon any Insolvency Filing or other proceeding under the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”) in respect of the Issuer, the Transaction shall automatically terminate on the date thereof without further liability of either party to this Confirmation to the other party (except for any liability in respect of any breach of representation or covenant by a party under this Confirmation prior to the date of such Insolvency Filing or other proceeding), it being understood that the Transaction is a contract for the issuance of Shares by the Issuer.

	
			
	 
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	Hedging Disruption:
	Applicable

	Increased Cost of Hedging:
	Applicable

	Loss of Stock Borrow:
	Applicable

	Maximum Stock Loan Rate:
	300 basis points per annum

	Hedging Party:
	For all applicable Additional Disruption Events, Deutsche.

	Determining Party:
	For all applicable Additional Disruption Events, Deutsche.

	Acknowledgments:
	 

	Non-Reliance:
	Applicable

	Agreements and Acknowledgments Regarding Hedging Activities:
	Applicable

	Additional Acknowledgments:
	Applicable

	Calculation Agent:
	Deutsche.  Following any determination or calculation by the Calculation Agent hereunder, in its capacity as such, upon request by Counterparty, the Calculation Agent will provide to Counterparty, by e-mail to the e-mail address provided by Counterparty herein, a report (in a commonly used file format for the storage and manipulation of financial data) displaying, in reasonable detail, the basis for any such determination or calculation, it being understood that the Calculation Agent shall not be obligated to disclose any proprietary or confidential models or other proprietary or confidential information used by it for such determination or calculation.

	Account Details:
	 

	(a)   Account for delivery of Shares to Deutsche:
	To be furnished

	(b)   Account for payments to Counterparty:
	To be furnished

	(c)   Account for payments to Deutsche:
	Bank of New York
ABA 021-000-018
Deutsche Bank Securities, Inc.
A/C 8900327634
FFC:  To be provided by Deutsche

	Offices:

	The Office of Counterparty for the Transaction is:   Inapplicable, Counterparty is not a Multibranch Party.

	The Office of Deutsche for the Transaction is:   Deutsche Bank AG, London Branch
1 Great Winchester Street
Winchester House
London EC2N 2DB

	
			
	 
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	Notices:  For purposes of this Confirmation:

	(a)    Address for notices or communications to Counterparty:

NorthStar Realty Finance Corp.
399 Park Avenue, 18th Floor
New York, NY 10022
Attention:   Albert Tylis, President
                                 Ron Lieberman, General Counsel

Telephone:   (212) 547 2600
Email:           tylis@nrfc.com
rlieberman@nrfc.com

with a copy to:

Sullivan & Cromwell LLP
125 Broad Street
New York, NY  10004
Attention:     Robert W. Downes

Telephone:   (212) 558-4312
Email:           downesr@sullcrom.com

	(b)    Address for notices or communications to Deutsche:

Deutsche Bank AG, London Branch
c/o Deutsche Bank Securities Inc.
60 Wall Street
New York, NY  10005
Attention:   Paul Stowell
                                  Bethany Snoby
Telephone:   (212) 250-6270 
                                   (212) 250-5384
Email:          paul.stowell@db.com
                             bethany.snoby@db.com

with a copy to:

Deutsche Bank AG, London Branch
c/o Deutsche Bank Securities Inc.
60 Wall Street
New York, NY  10005
Attention:   Lars Kestner

Telephone:   (212) 250-6043
Email:          lars.kestner@db.com

Effectiveness; Underwriting Agreement; Interpretive Letter.
Conditions to Effectiveness.  Deutsche’s obligations under this Confirmation shall be subject to (i) the condition that the representations and warranties of Counterparty contained in the underwriting agreement dated as of September 3, 2014 among Counterparty, Deutsche, Deutsche Bank Securities Inc. and each of the underwriters party thereto (the 

	
			
	 
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“Underwriting Agreement”) are true and correct on the Effective Date as if made as of the Effective Date, (ii) the condition that Counterparty has performed all of the obligations required to be performed by it under the Underwriting Agreement on or prior to the Effective Date, (iii) the satisfaction or waiver of all of the conditions set forth in Section 6 of the Underwriting Agreement, and (iv) the condition that the Underwriting Agreement has not been terminated pursuant to Section 7 or Section 8 thereof. 
Underwriting Agreement Representations, Warranties and Covenants.  On the Trade Date and on each date on which Deutsche or its affiliates delivers a prospectus supplement in connection with a sale to hedge the Transaction, Counterparty repeats and reaffirms as of such date all of the representations and warranties contained in the Underwriting Agreement.  Counterparty hereby agrees to comply with its covenants contained in the Underwriting Agreement as if such covenants were made in favor of Deutsche. 
Interpretive Letter.  Counterparty agrees and acknowledges that the Transaction is being entered into in accordance with the October 9, 2003 interpretive letter from the staff of the Securities and Exchange Commission to Goldman, Sachs & Co. (the “Interpretive Letter”) and agrees that, with respect to the foregoing, Counterparty has filed a registration statement on Form S-3 with respect to the “maximum number of shares” (as such term is described in the Interpretive Letter) and appropriate undertakings under Rule 415 under the Securities Act, including, but not limited to, Rule 415(a)(4). In addition, Counterparty represents that it is eligible to conduct a primary offering of Shares on Form S-3, the offering contemplated by the Underwriting Agreement complies with Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”), and the Shares are “actively traded” as defined in Rule 101(c)(1) of Regulation M (“Regulation M”) promulgated under the Exchange Act.  
Agreements and Acknowledgments Regarding Shares:
		
	(i)
	Counterparty agrees and acknowledges that, in respect of any Shares delivered to Deutsche hereunder, such Shares shall be newly issued (unless mutually agreed otherwise by the parties) and, upon such delivery, duly and validly authorized, issued and outstanding, fully paid and nonassessable, free of any lien, charge, claim or other encumbrance (excluding those created by Deutsche or resulting from Deutsche’s status) and not subject to any preemptive or similar rights and shall, upon such issuance, be accepted for listing or quotation on the Exchange.

		
	(ii)
	Counterparty agrees and acknowledges that Deutsche will hedge its exposure to the Transaction by selling Shares borrowed from third party securities lenders or other Shares pursuant to a registration statement, and that, pursuant to the terms of the Interpretive Letter, the Shares (up to the full Number of Shares) delivered by Counterparty to Deutsche in connection with the Transaction may be used by Deutsche to return to securities lenders without further registration under the Securities Act.  Accordingly, Counterparty agrees that the Shares that it delivers to Deutsche on or prior to the final Settlement Date will not bear a restrictive legend and that such Shares will be deposited in, and the delivery thereof shall be effected through the facilities of, the Clearance System.

		
	(iii)
	Counterparty has reserved and will keep available at all times, free from preemptive or similar rights and free from any lien, charge, claim or other encumbrance (excluding those created by Deutsche or resulting from Deutsche’s status), authorized but unissued Shares at least equal to the Share Cap, solely for the purpose of settlement under the Transaction.

		
	(iv)
	Unless the provisions set forth below under “Private Placement and Registration Procedures” are applicable, Deutsche agrees to use any Shares delivered by Counterparty hereunder on any Settlement Date to return to securities lenders to close out open securities loans with respect to the Shares.

	
			
	 
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	(v)
	In connection with bids and purchases of Shares in connection with any Cash Settlement or Net Stock Settlement of the Transaction, Deutsche shall use its good faith efforts to comply, or cause compliance, with the provisions of Rule 10b-18 under the Exchange Act as if such provisions were applicable to such purchases.

Securities Laws Representations and Agreements:
		
	(i)
	Counterparty represents to Deutsche on the Trade Date and on any date that Counterparty notifies Deutsche that Cash Settlement, Net Stock Settlement or Alternative Settlement under “Alternative Settlement” below applies to the Transaction, that (a) each of its filings under the Securities Act, the Exchange Act or other applicable securities laws that are required to be filed have been filed and that, as of the date of this representation, there is no misstatement of material fact contained therein or omission of a material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; and (b) it has not and will not directly or indirectly violate any applicable law (including, without limitation, the Securities Act and the Exchange Act) in connection with the Transaction.  In addition to any other requirement set forth herein, Counterparty agrees not to designate any Settlement Date or elect Alternative Settlement under “Alternative Settlement” below if settlement in respect of such date would result in a violation of any applicable federal or state law or regulation, including the U.S. federal securities laws.

		
	(ii)
	It is the intent of Deutsche and Counterparty that following any election of Cash Settlement or Net Stock Settlement by Counterparty, the purchase of Shares by Deutsche during any Unwind Period comply with the requirements of Rule 10b5-l(c)(l)(i)(B) of the Exchange Act and that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-l(c).

Counterparty acknowledges that (a) during any Unwind Period Counterparty shall not have, and shall not attempt to exercise, any influence over how, when or whether to effect purchases of Shares by Deutsche (or its agent or affiliate) in connection with this Confirmation and (b) Counterparty is entering into the Agreement and this Confirmation in good faith and not as part of a plan or scheme to evade compliance with federal securities laws, including, without limitation, Rule 10b-5 promulgated under the Exchange Act.
Counterparty hereby agrees with Deutsche that during any Unwind Period Counterparty shall not communicate, directly or indirectly, any Material Non-Public Information (as defined herein) to any Equity Derivatives Group Personnel (as defined below).  For purposes of the Transaction, “Material Non-Public Information” means information relating to Counterparty or the Shares that (x) has not been widely disseminated by wire service, in one or more newspapers of general circulation, by communication from Counterparty to its shareholders or in a press release, or contained in a public filing made by Counterparty with the Securities and Exchange Commission and (y) a reasonable investor might consider to be of importance in making an investment decision to buy, sell or hold Shares.  For the avoidance of doubt and solely by way of illustration, information should be presumed “material” if it relates to such matters as dividend increases or decreases, earnings estimates, changes in previously released earnings estimates, significant expansion or curtailment of operations, significant merger or acquisition proposals or agreements, extraordinary borrowing, major litigation, liquidity problems, extraordinary management developments, purchase or sale of substantial assets, or other similar information.  For purposes of the Transaction, “Equity Derivatives Group Personnel” means any employee of Deutsche or its affiliates who effects purchases or sales of Shares in connection with this Agreement.
		
	(iii)
	Counterparty shall, at least one day prior to the first day of any Unwind Period, notify Deutsche of the total number of Shares purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception 

	
			
	 
	12
	 

contained in Rule 10b-18(b)(4) by or for Counterparty or any of its affiliated purchasers during each of the four calendar weeks preceding the first day of such Unwind Period and during the calendar week in which the first day of such Unwind Period occurs (“Rule 10b-18 purchase”, “blocks” and “affiliated purchaser” each being used as defined in Rule 10b-18).
		
	(iv)
	During any Unwind Period, Counterparty shall (a) notify Deutsche prior to the opening of trading in the Shares on any day on which Counterparty makes, or expects to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any merger, acquisition, or similar transaction involving a recapitalization relating to Counterparty (other than any such transaction in which the consideration consists solely of cash and there is no valuation period), (b) promptly notify Deutsche following any such announcement that such announcement has been made, and (c) promptly deliver to Deutsche following the making of any such announcement information indicating (1) Counterparty’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months preceding the date of the announcement of such transaction and (2) Counterparty’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months preceding the date of the announcement of such transaction.  In addition, during any Unwind Period, Counterparty shall promptly notify Deutsche of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders.

		
	(v)
	Neither Counterparty nor any of its affiliates shall take or refrain from taking any action (including, without limitation, any direct purchases by Counterparty or any of its affiliates, or any purchases by a party to a derivative transaction with Counterparty or any of its affiliates), either under this Confirmation, under an agreement with another party or otherwise, that might cause any purchases of Shares by Deutsche or any of its affiliates in connection with any Cash Settlement or Net Stock Settlement of the Transaction not to meet the requirements of the safe harbor provided by Rule 10b-18 if such purchases were made by Counterparty.

		
	(vi)
	Counterparty shall not engage in any “distribution” (as defined in Regulation M) that would cause a “restricted period” (as defined in Regulation M) to occur during any Unwind Period.

		
	(vii)
	Counterparty is not entering into this Confirmation or making any election hereunder to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) in violation of the Exchange Act.

		
	(viii)
	Counterparty is not and, after giving effect to the Transaction, will not be an “investment company” as such term is defined in the U.S. Investment Company Act of 1940, as amended.

		
	(ix)
	Counterparty agrees that it shall use its good faith efforts, upon obtaining actual knowledge of the occurrence of any event that would, with the giving of notice, the passage of time or the satisfaction of any condition, constitute an Event of Default, a Potential Event of Default, a Termination Event in respect of which it is an Affected Party, a Potential Adjustment Event, an Extraordinary Event or an Additional Disruption Event, to notify Deutsche within two Scheduled Trading Days of the occurrence of obtaining such actual knowledge; provided, however, that should Counterparty be in possession of Material Non-Public Information regarding itself or the Shares, Counterparty shall not communicate such information to Deutsche in connection with this Transaction.

		
	(x)
	Counterparty represents and warrants to Deutsche as of the date hereof, and as of any date on which Counterparty makes payment to Deutsche in connection with any settlement hereunder, that it is solvent and 

	
			
	 
	13
	 

able to pay its debts as they come due, with assets having a fair value greater than liabilities and with capital sufficient to carry on the business in which it engages.
Miscellaneous:
Acceleration Events.
		
	(i)
	Dividends.  If on any day after the Trade Date and prior to the final settlement of the Transaction, Counterparty declares a distribution, issue or dividend to existing holders of the Shares of (a) any cash dividend other than a regular quarterly cash dividend to holders of record in an amount equal to the Forward Price Reduction Amount, (b) share capital or other securities of another issuer acquired or owned (directly or indirectly) by Counterparty as a result of a spin-off or similar transaction, (c) any other type of securities (other than Shares), rights or warrants or other assets, in any case for payment (cash or other consideration) at less than the prevailing market price, as determined by Deutsche or (d) any Extraordinary Dividend, then Deutsche shall be entitled to designate any Scheduled Trading Day prior to the date the Number of Shares is first reduced to zero to be a Settlement Date by providing Counterparty notice thereof no later than 10:00 a.m. (New York City time) on the Scheduled Trading Day preceding such Settlement Date, and to designate the number of Settlement Shares for the relevant Settlement Date.

		
	(ii)
	Stock Price Event.  If at any time after the Trade Date the traded price per Share on the Exchange is less than or equal to USD 8.97, then Deutsche shall be entitled at any time thereafter to designate one or more Scheduled Trading Days prior to the date the Number of Shares is first reduced to zero to be a Settlement Date, by providing Counterparty notice thereof no later than 10:00 a.m. (New York City time) on the Scheduled Trading Day preceding such Settlement Date, and to designate the number of Settlement Shares for the relevant Settlement Date.

		
	(iii)
	Announcement of Extraordinary Event.  If on any day after the Trade Date, any event is announced that, if consummated, would constitute an Extraordinary Event, then Deutsche shall be entitled to designate any Scheduled Trading Day prior to the date the Number of Shares is first reduced to zero to be a Settlement Date by providing Counterparty notice thereof no later than 10:00 a.m. (New York City time) on the Scheduled Trading Day preceding such Settlement Date, and to designate the number of Settlement Shares for the relevant Settlement Date.

		
	(iv)
	ISDA Termination.  In lieu of (a) designating an Early Termination Date as the result of an Event of Default or Termination Event, (b) terminating the Transaction and determining a Cancellation Amount as the result of an Additional Disruption Event, or (c) terminating the Transaction and determining an amount payable in connection with an Extraordinary Event to which Cancellation and Payment would otherwise be applicable, Deutsche shall be entitled to designate any Scheduled Trading Day prior to the date the Number of Shares is first reduced to zero to be a Settlement Date with respect to the Number of Shares as the Settlement Shares.

		
	(v)
	Termination Settlement.  Notwithstanding anything to the contrary herein, in the Agreement or in the Equity Definitions, if a Settlement Date is designated by Deutsche as the result of one of the foregoing sub-paragraphs (i) through (iv), Physical Settlement shall apply to the relevant Settlement Shares.

Private Placement and Registration Procedures.  If Counterparty notifies Deutsche that it is unable to comply with the provisions of sub-paragraph (ii) of “Agreements and Acknowledgments Regarding Shares” above because of a change in law or a change in the policy of the Securities and Exchange Commission or its staff, or Deutsche notifies Counterparty that in the opinion of outside counsel of national standing any Shares to be delivered to Deutsche by 

	
			
	 
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Counterparty may not be freely returned by Deutsche to securities lenders as described under such sub-paragraph (ii) or otherwise constitute “restricted securities” as defined in Rule 144 under the Securities Act (the date such notification is effective being the “Determination Date”), then Counterparty may elect to effect the delivery of any such Shares (the “Restricted Shares”) pursuant to either clause (i) or (ii) below, unless waived by Deutsche, on the later of (A)(1) if Private Placement Settlement is applicable, the tenth Scheduled Trading Day following the Determination Date or (2) if Registration Settlement is applicable, the 30th calendar day following the Determination Date (or if such day is not a Clearance System Business Day, the next Clearance System Business Day), (B) the date such delivery would otherwise be due pursuant to the terms of this Confirmation and (C) the Clearance System Business Day following notice by Deutsche to Counterparty of the number of Shares to be delivered pursuant to these “Private Placement and Registration Procedures”; provided that if Counterparty does not so elect within three Scheduled Trading Days of the Determination Date, Counterparty shall be deemed to have elected clause (i) below.
		
	(i)
	If Counterparty elects to settle the Transaction with Restricted Shares (a “Private Placement Settlement”), then delivery of Restricted Shares by Counterparty shall be effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Deutsche; provided that Counterparty may not elect a Private Placement Settlement if, on the date of its election, it has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(a)(2) of the Securities Act for the sale by Counterparty to Deutsche (or any affiliate designated by Deutsche) of the Restricted Shares or the exemption pursuant to Section 4(a)(1) or Section 4(a)(3) of the Securities Act for resales of the Restricted Shares by Deutsche (or any such affiliate of Deutsche).  The Private Placement Settlement of such Restricted Shares shall include customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Deutsche, due diligence rights (for Deutsche or any designated buyer of the Restricted Shares by Deutsche), opinions and certificates, and such other documentation as is customary for private placement agreements, all reasonably acceptable to Deutsche.  In the case of a Private Placement Settlement, Deutsche shall, in its good faith discretion, adjust the amount of Restricted Shares to be delivered to Deutsche hereunder in a commercially reasonable manner to reflect the fact that (A) such Restricted Shares may not be freely returned to securities lenders by Deutsche and may only be saleable by Deutsche at a discount to reflect the lack of liquidity in Restricted Shares and (B) Deutsche will incur carrying costs and other costs in connection with its hedge unwind activity relating to such Private Placement Settlement; provided that in no event will Counterparty be required to deliver to Deutsche a number of Restricted Shares in excess of the Share Cap minus the aggregate number of Shares delivered by Counterparty to Deutsche under the Transaction prior to such date of delivery.

If Counterparty delivers any Restricted Shares in respect of the Transaction, Counterparty agrees that (A) such Shares may be transferred by and among Deutsche and its affiliates and (B) after the “holding period” specified in Rule 144(d)(ii) under the Securities Act has elapsed, Counterparty shall promptly remove, or cause the transfer agent for the Shares to remove, any legends referring to any transfer restrictions from such Shares upon delivery by Deutsche (or such affiliate of Deutsche) to Counterparty or such transfer agent of any seller’s and broker’s representation letters customarily delivered by Deutsche or its affiliates in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, each without any further requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Deutsche (or such affiliate of Deutsche).
		
	(ii)
	If Counterparty elects to settle the Transaction pursuant to this clause (ii) (a “Registration Settlement”), then Counterparty shall promptly (but in any event no later than the Scheduled Trading Day immediately prior to the date delivery of the Shares is due pursuant to the terms of these “Private Placement and Registration Procedures”) file and use its commercially reasonable efforts to make effective under the Securities Act a 

	
			
	 
	15
	 

registration statement or supplement or amend an outstanding registration statement in form and substance reasonably satisfactory to Deutsche, to cover the resale of Restricted Shares (the “Registered Shares”) in accordance with customary resale registration procedures, including covenants, conditions, representations, underwriting discounts, commissions, indemnities, due diligence rights, opinions and certificates, and such other documentation as is customary for equity resale underwriting agreements, all reasonably acceptable to Deutsche.  If Deutsche, in its reasonable discretion, is not satisfied with such procedures and documentation or if a Settlement Date is designated by Deutsche pursuant to the “Acceleration Events” provisions above, Private Placement Settlement shall apply notwithstanding any election to the contrary and Counterparty shall effect delivery of Restricted Shares by the tenth Scheduled Trading Day following notification from Deutsche.  In the case of a Registration Settlement, the Calculation Agent shall adjust the amount of Registered Shares to be delivered to Deutsche hereunder to reflect the fact that Deutsche will incur carrying costs and other costs in connection with its hedge unwind activity relating to such Registered Settlement; provided that in no event will Counterparty be required to deliver to Deutsche a number of Registered Shares in excess of the Share Cap minus the aggregate number of Shares delivered by Counterparty to Deutsche under the Transaction prior to such date of delivery.
Indemnity.  Counterparty agrees to indemnify Deutsche and its affiliates and their respective directors, officers, employees, agents and controlling persons (Deutsche and each such affiliate or person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities, joint and several, incurred by or asserted against such Indemnified Party arising out of, in connection with, or relating to, the execution or delivery of this Confirmation, the performance by the parties hereto of their respective obligations under the Transaction, any breach of any covenant or representation made by Counterparty in this Confirmation or the Agreement or the consummation of the transactions contemplated hereby and will reimburse any Indemnified Party for all reasonable expenses (including reasonable legal fees and expenses) as they are incurred in connection with the investigation of, preparation for, or defense of any pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto, except to the extent resulting from Deutsche’s gross negligence or willful misconduct.
Waiver of Trial by Jury.  EACH OF COUNTERPARTY AND DEUTSCHE HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEUTSCHE, DBSI, OR COUNTERPARTY IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.
Governing Law/Jurisdiction.  This Confirmation shall be governed by the laws of the State of New York without reference to the conflict of laws provisions thereof.  The parties hereto irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the United States Court for the Southern District of New York in connection with all matters relating hereto and waive any objection to the laying of venue in, and any claim of inconvenient forum with respect to, these courts.
Method of Delivery.  Whenever delivery of funds or other assets is required hereunder by or to Counterparty, such delivery shall be effected through DBSI.  In addition, all notices, demands and communications of any kind relating to the Transaction between Deutsche and Counterparty shall be transmitted exclusively through DBSI. Nothing in this paragraph shall relieve Deutsche of its obligations hereunder to make deliveries or provide any notices, demands or other communications in accordance with the terms hereof.
Alternative Settlement.  If Counterparty owes Deutsche any amount in connection with the Transaction pursuant to Section 12.7 or 12.9 of the Equity Definitions (except in the case of an Extraordinary Event in which the consideration 

	
			
	 
	16
	 

or proceeds to be paid to holders of Shares as a result of such event consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the case of an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, other than (x) an Event of Default of the type described in Section 5(a)(iii), (v), (vi) or (vii) of the Agreement or (y) a Termination Event of the type described in Section 5(b)(i), (ii), (iii), (iv), or (v) of the Agreement that in the case of either (x) or (y) resulted from an event or events outside Counterparty’s control) (a “Payment Obligation”), Counterparty shall have the right, in its sole discretion, to satisfy any such Payment Obligation by delivery of Termination Delivery Units (as defined below) by giving irrevocable telephonic notice to Deutsche, confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Closing Date, Early Termination Date or other date of termination or cancellation, as applicable (“Notice of Termination Delivery”).  Upon Notice of Termination Delivery, Counterparty shall deliver to Deutsche a number of Termination Delivery Units having a cash value equal to the amount of such Payment Obligation (such number of Termination Delivery Units to be delivered to be determined by the Calculation Agent acting in a commercially reasonable manner, taking into account whether the Termination Delivery Units so delivered are freely tradable).  Settlement relating to any delivery of Termination Delivery Units pursuant to this provision shall occur within three Scheduled Trading Days.  “Termination Delivery Unit” means (A) in the case of a Termination Event, an Event of Default or an Extraordinary Event (other than an Insolvency, Nationalization, Merger Event or Tender Offer), one Share or (B) in the case of an Insolvency, Nationalization, Merger Event or Tender Offer, a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization, Merger Event or Tender Offer; provided that if such Insolvency, Nationalization, Merger Event or Tender Offer involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash.
Disclosure. Effective from the date of commencement of discussions concerning the Transaction, each of Deutsche and Counterparty and each of their employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) relating to such tax treatment and tax structure.
Right to Extend.  Deutsche may postpone any Settlement Date to which Cash Settlement or Net Stock Settlement shall apply or any other date of valuation or delivery, with respect to some or all of the relevant Settlement Shares, if Deutsche determines, in its reasonable discretion, that such extension is reasonably necessary or appropriate to enable Deutsche to effect purchases of Shares in connection with its hedging activity hereunder in a manner that would, if Deutsche were Counterparty or an affiliated purchaser of Counterparty, be in compliance with applicable legal and regulatory requirements, as determined by Deutsche based upon the advice of outside counsel of national standing.  Notwithstanding the foregoing, Deutsche shall not have any right to postpone a Settlement Date to which Physical Settlement shall apply.
Limit on Beneficial Ownership.  Notwithstanding any other provisions hereof, Deutsche shall not be entitled to receive Shares hereunder (whether in connection with the purchase of Shares on any Settlement Date or otherwise) to the extent (but only to the extent) that such receipt would result in (i) Deutsche and each person subject to aggregation of Shares with Deutsche under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder (the “Deutsche Group”) directly or indirectly beneficially owning (as such term is defined for purposes of Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder) in excess of 4.9% of the then outstanding Shares (the “Ownership Threshold”) or (ii) Deutsche and its affiliates having direct or indirect ownership or control at any time of a number of outstanding Shares in excess of the Ownership Limit.  Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that such delivery would result in Deutsche and its affiliates directly or indirectly so beneficially owning or so owning or controlling a number of Shares in excess of the Ownership Limit.  If any delivery owed to Deutsche hereunder is not made, in whole or in part, as a result of this provision, 

	
			
	 
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Counterparty’s obligation to make such delivery shall not be extinguished and Counterparty shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day after, Deutsche gives notice to Counterparty that such delivery would not result in (i) Deutsche and its affiliates directly or indirectly so beneficially owning or so owning or controlling in excess of the Ownership Limit and (ii) the Deutsche Group directly or indirectly so beneficially owning or so owning or controlling in excess of the Ownership Threshold of Shares. “Ownership Limit” means (x) the minimum number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval from any person or entity) of any member of the Deutsche Group, or would result in an adverse effect on any such member, under any applicable law or Counterparty’s organizational documents, as determined by Deutsche in its reasonable discretion, minus (y) 1% of the number of Shares outstanding.
Commodity Exchange Act.  Each of Deutsche and Counterparty agrees and represents that it is an “eligible contract participant” as defined in Section 1a(18) of the U.S. Commodity Exchange Act, as amended (the “CEA”), the Agreement and the Transaction are subject to individual negotiation by the parties and have not been executed or traded on a “trading facility” as defined in Section 1a(51) of the CEA.
Securities Act.  Each of Deutsche and Counterparty agrees and represents that it is a “qualified institutional buyer” as defined in Rule 144A under the Securities Act or an “accredited investor” as defined under the Securities Act.
ERISA.  Each of Deutsche and Counterparty agrees and represents that the assets used in the Transaction (a) are not assets of any “plan” (as such term is defined in Section 4975 of the U.S. Internal Revenue Code (the “Code”)) subject to Section 4975 of the Code or any “employee benefit plan” (as such term is defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) subject to Title I of ERISA, and (b) do not constitute “plan assets” (as such term is defined in Section 3(42) of ERISA).
Bankruptcy Status.  Subject to Insolvency Filing above, Deutsche acknowledges and agrees that this Confirmation is not intended to convey to Deutsche rights with respect to the transactions contemplated hereby that are senior to the claims of Counterparty’s common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided, however, that nothing herein shall be deemed to limit Deutsche’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to this Confirmation and the Agreement; and provided, further, that nothing herein shall limit or shall be deemed to limit Deutsche’s rights in respect of any transaction other than the Transaction.
No Collateral.  Notwithstanding any provision of this Confirmation or the Agreement, or any other agreement between the parties to the contrary, the parties acknowledge that the Transaction is not secured by any collateral that would otherwise secure the obligations of Counterparty herein under or pursuant to the Agreement.  Without limiting the generality of the foregoing, the Transaction will not be considered to create obligations covered by any collateral credit support annex to the Agreement and will be disregarded for the purposes of calculating any exposures pursuant to any such annex.
Netting and Setoff.  Deutsche agrees not to set-off or net amounts due from Counterparty with respect to the Transaction against amounts due from Deutsche to Counterparty under any obligations whether by operation of law or otherwise.  Section 2(c) of the Agreement as it applies to payments due with respect to the Transaction shall remain in effect and is not subject to the first sentence of this provision.  
Severability, Illegality.  If compliance by either party with any provision of the Transaction would be unenforceable or illegal, (i) the parties shall negotiate in good faith to resolve such unenforceability or illegality in a manner that preserves the economic benefits of the transactions contemplated hereby and (ii) the other provisions of the Transaction shall not be invalidated, but shall remain in full force and effect.

	
			
	 
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Tax Representations.
		
	(i)
	For the purpose of Section 3(e) of the Agreement, each party makes the following representation:

		
	(A)
	It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 9(h) of the Agreement and any other payments of interest and penalty charges for late payment) to be made by it to the other party under the Agreement.

		
	(B)
	In making this representation, a party may rely on (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of the Agreement, and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of the Agreement, provided that it shall not be a breach of this representation where reliance is placed on clause (ii) above and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position.

(ii)    For the purpose of Section 3(f) of the Agreement:
		
	(A)
	Deutsche represents that the Transaction, entered into by Deutsche Bank AG, London branch acting through Deutsche Bank Securities Inc. or Deutsche Bank AG, New York branch, will be treated, solely for United States income tax purposes, as entered into by a United States corporation.

		
	(B)
	Counterparty represents that it is a “U.S. person” (as that term is used in section 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for United States federal income tax purposes.

		
	(iii)
	For the purpose of Section 4(a)(i) of the Agreement, promptly upon execution of this Confirmation, Counterparty shall provide to Deutsche a valid and duly executed IRS Form W-9 (or any successor form) and any required attachments thereto.

		
	(iv)
	For the purpose of Section 4(a)(i) of the Agreement, promptly upon execution of this Confirmation, Deutsche shall provide to Counterparty a valid and duly executed IRS Form W-8IMY (or any successor form) from DBAG London branch and withholding statement with attached Form W-9 (or any successor form) from DBAG New York branch.

Change of Account.  Section 2(b) of the Agreement is hereby amended by the addition after the word “delivery” in the first line thereof of the phrase “to another account in the same legal and tax jurisdiction”.
Tax Documents. Section 4(a)(iii) of the Agreement is hereby amended by adding prior to the existing text:  “upon the earlier of learning that any such form or document is required or”.
2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol. The parties agree that the terms of the 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol published by ISDA on July 19, 2013 (“Protocol”) apply to the Agreement as if the parties had adhered to the Protocol without amendment.  In respect of the Attachment to the Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this paragraph (and references to “such party’s Adherence 

	
			
	 
	19
	 

Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into this Agreement”, (iii) references to “Protocol Covered Agreement” shall be deemed to be references to this Agreement (and each “Protocol Covered Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of this Agreement.  For the purposes of this paragraph:
		
	(i)
	Deutsche is a Portfolio Data Sending Entity and Counterparty is a Portfolio Data Receiving Entity; 

		
	(ii)
	Deutsche and Counterparty may use a Third Party Service Provider, and each of Deutsche and Counterparty consents to such use including the communication of the relevant data in relation to Deutsche and Counterparty to such Third Party Service Provider for the purposes of the reconciliation services provided by such entity.

		
	(iii)
	The Local Business Days for such purposes in relation to Deutsche are New York and in relation to Counterparty are New York;

		
	(iv)
	The provisions in this paragraph shall survive the termination of this Transaction.

		
	(v)
	The following are the applicable email addresses.

		
	Portfolio Data:
	Deutsche: collateral.disputes@db.com

Counterparty: derivatives.disputes@nrfc.com 

		
	Notice of discrepancy:
	Deutsche: collateral.disputes@db.com

Counterparty: derivatives.disputes@nrfc.com 

		
	Dispute Notice:
	Deutsche: collateral.disputes@db.com

Counterparty: derivatives.disputes@nrfc.com 

NFC Representation Protocol.  
(i)The parties agree that the provisions set out in the Attachment to the ISDA 2013 EMIR NFC Representation Protocol published by ISDA on March 8, 2013 (the “NFC Representation Protocol”) shall apply to the Agreement as if each party were an Adhering Party under the terms of the NFC Representation Protocol.  In respect of the Attachment to the Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this sub-paragraph (i) (and references to “the relevant Adherence Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into this Agreement”, (iii) references to “Covered Master Agreement” shall be deemed to be references to this Agreement (and each “Covered Master Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of this Agreement. 
(ii)Counterparty confirms that it enters into this Agreement as a party making the NFC Representation (as such term is defined in the NFC Representation Protocol).  Counterparty shall promptly notify Deutsche of any change to its status as a party making the NFC Representation.
Transaction Reporting - Consent for Disclosure of Information.  Notwithstanding anything to the contrary herein or in the Agreement or any non-disclosure, confidentiality or other agreements entered into between the parties from time to time, each party hereby consents to the Disclosure of information (the “Reporting Consent”):

	
			
	 
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(i)to the extent required by, or necessary in order to comply with, any applicable law, rule or regulation which mandates Disclosure of transaction and similar information or to the extent required by, or necessary in order to comply with, any order, request or directive regarding Disclosure of transaction and similar information issued by any relevant authority or body or agency (“Reporting Requirements”); or
(ii)to and between the other party’s head office, branches or affiliates; to any person, agent, third party or entity who provides services to such other party or its head office, branches or affiliates; to a Market; or to any trade data repository or any systems or services operated by any trade repository or Market, in each case, in connection with such Reporting Requirements.
For the purpose of this paragraph, “Disclosure” means disclosure, reporting, retention, or any action similar or analogous to any of the aforementioned and “Market” means any exchange, regulated market, clearing house, central clearing counterparty or multilateral trading facility.
Disclosures made pursuant to this Reporting Consent may include, without limitation, Disclosure of information relating to disputes over transactions between the parties, a party’s identity, and certain transaction and pricing data and may result in such information becoming available to the public or recipients in a jurisdiction which may have a different level of protection for personal data from that of the relevant party’s home jurisdiction.
This Reporting Consent shall be deemed to constitute an agreement between the parties with respect to Disclosure in general and shall survive the termination of this Confirmation. No amendment to or termination of this Reporting Consent shall be effective unless such amendment or termination is made in writing between the parties and specifically refers to this Reporting Consent.
[Signature Pages Follow]

	
			
	 
	21
	 

Counterparty hereby confirms that the foregoing (in the exact form provided by Deutsche) correctly sets forth the terms of the agreement between Deutsche and Counterparty with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Deutsche.

DEUTSCHE BANK AG, LONDON BRANCH

		
	By:
	/s/ Michael Sanderson    

Name: Michael Sanderson 
Title: Attorney in Fact

		
	By:
	/s/ Lars Kestner    

Name: Lars Kestner 
Title: Attorney in Fact

DEUTSCHE BANK SECURITIES INC.,
acting solely as agent in connection with the Transaction

		
	By:
	/s/ Michael Sanderson    

Name: Michael Sanderson 
Title: Managing Director

		
	By:
	/s/ Lars Kestner    

Name: Lars Kestner 
Title: Managing Director

Agreed and Accepted By:
NORTHSTAR REALTY FINANCE CORP.
By: /s/ Ronald J. Lieberman                 
Name: Ronald J. Lieberman 
Title: Executive Vice President, General Counsel & Secretary

	
			
	 
	[Signature Page to Registered Forward Transaction Confirmation]
	 

Execution Version

Deutsche Bank 

Deutsche Bank AG, London Branch
Winchester house
1 Great Winchester St, 
London EC2N 2DB 
Telephone:  44 20 7545 8000

c/o Deutsche Bank Securities Inc.
60 Wall Street
New York, NY 10005
Telephone: (212) 250-2500

DATE:    September 4, 2014

TO:    NorthStar Realty Finance Corp.
399 Park Avenue, 18th Floor
New York, NY 10022 
ATTENTION:    Albert Tylis, President    
FACSIMILE:    01 212 547 2600

FROM:    Deutsche Bank AG, London Branch
TELEPHONE:    44 20 7545 0556
FACSIMILE:    44 11 3336 2009

SUBJECT:    First Amendment to Registered Forward Transaction

REFERENCE NUMBER:    597527

The purpose of this letter agreement is to amend certain terms and conditions of the letter agreement between Deutsche Bank AG, London Branch (“Deutsche”) and NorthStar Realty Finance Corp. (“Counterparty”), dated as of September 3, 2014 (the “Confirmation”), as provided below.  Capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the Confirmation. 
DEUTSCHE BANK AG, LONDON BRANCH IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  DEUTSCHE BANK SECURITIES INC. (“DBSI”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION.  AS SUCH, ALL DELIVERY OF FUNDS, ASSETS, NOTICES, DEMANDS AND COMMUNICATIONS OF ANY KIND RELATING TO THIS TRANSACTION BETWEEN DEUTSCHE BANK AG, LONDON BRANCH, AND COUNTERPARTY SHALL BE TRANSMITTED EXCLUSIVELY THROUGH DEUTSCHE BANK SECURITIES INC.  DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

	
		
	Chairman of the Supervisory Board:  Dr. Paul Achleitner.  

Management Board:  Jürgen Fitschen (Co-Chairman), Anshu Jain (Co-Chairman), Stefan Krause, Stephan Leithner, Stuart Lewis, Rainer Neske and Henry Ritchotte.
      
	Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin – Federal Financial Supervising Authority) and by the Prudential Regulation Authority and subject to limited regulation by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG, London Branch is a member of the London Stock Exchange. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am Main; Branch Registration in England and Wales BR000005; Registered address: Winchester House, 1 Great Winchester Street, London EC2N 2DB. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available on request or from https://www.db.com/en/content/eu_disclosures_uk.htm.

		
	1.
	The definition of “Number of Shares” in the “General Terms” section of the Confirmation is hereby amended by replacing the number “22,500,000” with the number “30,000,000.”

		
	2.
	The definition of “Share Cap” in the “General Terms” section of the Confirmation is hereby amended by replacing the number “45,000,000” with the number “60,000,000.”

		
	3.
	The first paragraph of the “Effectiveness; Underwriting Agreement; Interpretive Letter” section of the Confirmation is hereby amended by replacing the phrase “(the “Underwriting Agreement”)” with the phrase “(as amended, the “Underwriting Agreement”).”

		
	4.
	Each party hereby reaffirms on the date hereof the representations contained or incorporated by reference in the Confirmation (with any references therein to the “Trade Date” deemed references to the date of this letter agreement).

		
	5.
	The Confirmation and this letter agreement constitute the entire agreement and understanding of the parties with respect to their subject matter and terms of the Transaction and supersede all prior or contemporaneous written and oral communication with respect thereto.  No amendment, modification or waiver in respect of this letter agreement will be effective unless in writing (including a writing evidenced by a facsimile transmission) and executed by each of the parties.  This letter agreement may be executed in counterparts (including by facsimile transmission), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

		
	6.
	The Confirmation, as modified herein, shall continue in full force and effect.  All references to the Confirmation in the Confirmation or any document related thereto shall for all purposes constitute references to the Confirmation as amended hereby.

		
	7.
	This letter agreement shall be governed by the laws of the State of New York without reference to the conflict of laws provisions thereof.  The parties hereto irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the United States Court for the Southern District of New York in connection with all matters relating hereto and waive any objection to the laying of venue in, and any claim of inconvenient forum with respect to, these courts.

[Signature Pages Follow]

	
			
	 
	24
	 

Counterparty hereby confirms that the foregoing (in the exact form provided by Deutsche) correctly sets forth the amendment to the terms of the agreement between Deutsche and Counterparty with respect to the Transaction, by manually signing this letter agreement or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Deutsche.

DEUTSCHE BANK AG, LONDON BRANCH

		
	By:
	/s/ Michael Sanderson    

Name: Michael Sanderson 
Title: Attorney in Fact

		
	By:
	/s/ Lars Kestner    

Name: Lars Kestner 
Title: Attorney in Fact

DEUTSCHE BANK SECURITIES INC.,
acting solely as agent in connection with the Transaction

		
	By:
	/s/ Michael Sanderson    

Name: Michael Sanderson 
Title: Managing Director

		
	By:
	/s/ Lars Kestner    

Name: Lars Kestner 
Title: Managing Director

Agreed and Accepted By:
NORTHSTAR REALTY FINANCE CORP.
By: /s/ Ronald J. Lieberman                 
Name: Ronald J. Lieberman 
Title: Executive Vice President, General Counsel & Secretary

	
			
	 
	[Signature Page to Amendment to Registered Forward Transaction Confirmation]ex-10.1

 CONSULTING AGREEMENT
 

 THIS AGREEMENT dated effective as of the 3rd day of September, 2014 ("Effective Date").
 

 BETWEEN:
 ROBERT LIPP, business person, having an address at Box 3516, Boynton Beach, Florida 33424
 

 (hereinafter called the "Consultant”)
 

 OF THE FIRST PART
 

 AND:
 TRITON EMISSION SOLUTIONS INC., a company incorporated under the laws of the State of Delaware, having an address located at 151 San Francisco Street, #201, San Juan, Puerto Rico 00901  
 

 (hereinafter called the “Company”)
 

 OF THE SECOND PART
 

 WHEREAS, the Company wishes to engage the Consultant as an independent consultant to provide the services to the Company as, and subject to the terms and conditions, set forth in this Agreement, and Consultant wishes to provide such services, subject to the terms and conditions set forth herein.
 

 THIS AGREEMENT WITNESSES THAT in consideration of the premises and mutual covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound hereby, agree as follows:
 

 1.
 CONSULTING SERVICES
 

 1.1
 The Company hereby engages the Consultant to provide the Consulting Services to the Company in accordance with the terms and conditions of this Agreement and the Consultant hereby accepts such engagement.
 

 1.2
 The Consultant agrees to perform the duties generally attributable to a Vice President, Investor Affairs of the Company, reporting directly to the Company’s Chief Executive Officer (the “CEO”) and the Company’s Chief Financial Officer (the “CFO”), and to perform the following services and undertake the following responsibilities and duties to the Company as consulting services, subject to the supervision and control of the CEO and the CFO (the "Consulting Services")
 

 (a)
 Respond to investor inquiries;
 

 

 (b)
 Assist the Company in making an application to list its securities on NASDAQ or other stock exchanges;
 

 (c)
 Promoting the Company to retail brokers;
 

 (d)
 Assist the Company with presentations to potential institutional equity hedge funds, money managers, registered investment advisors, and microcap funds; and
 

 (e)
 performing such other duties and observing such instructions as may be reasonably assigned from time to time by or on behalf of the CEO and the CFO in the Consultant’s capacity to perform the duties generally attributable to a Vice President, Investor Relations, provided such duties are within the scope of the Company’s business and implementation of the Company’s business plan.
 

 
 

 1.3
 The Consultant shall devote such attention and energies to the business affairs of the Company as may be reasonably necessary for the discharge of his duties as Vice President, Investor Relations, provided that, subject to the terms and conditions set out in this Agreement, the Consultant may engage in investment, business and other activities.
 

 1.4
 The Consultant will at all times be an independent contractor and the Consultant will not be deemed to be an employee, officer or director of the Company.  The Consultant shall be responsible for all taxes or deductions as required, or remitted in the Consultant’s country of domicile.
 

 1.5
 The Consultant shall comply with all applicable federal, state and local laws, statutes and regulations and the lawful requirements and directions of any governmental or administrative authority having jurisdiction with respect to the Consulting Services, including, without limitation, the United States  Securities Act of 1933 and the United States Securities Exchange Act of 1934, each as amended (the “Securities Act” and the “Exchange Act,” respectively) and any applicable state securities laws, and agrees to indemnify the Company against all claims, loss, damages and expenses incurred by the Consultant's violation of any laws, statutes or regulations.
 

 1.6
 The Consultant is not a registered broker or dealer under the Exchange Act or under any other applicable securities laws, and, will not during the term of this Agreement, engage in any activities that would require the Consultant to register as a broker or dealer under the Exchange Act or under any other applicable securities laws. 
 

 1.7
 The Consultant will not make any representations concerning the Company without the prior authorization of both the CEO and the CFO, and the Consultant will not knowingly make any untrue statement of a material fact regarding the Company, nor knowingly omit to state a material fact required to be stated or necessary to make any statement by the Consultant not misleading.
 

 1.8
 The Consultant will not, without the prior authorization of both the CEO and the CFO, distribute any materials or make any representations about the Company, its business or its prospects, other than the Company’s public filings with the United States Securities and Exchange Commission (the “SEC”).
 

 2.
 CONSULTING FEE, SHARES, WARRANTS AND REIMBURSEMENT OF EXPENSES
 

 2.1
 In consideration for the Consultant’s agreement to provide the Consulting Services, the Company shall issue to the Consultant the following securities (collectively, the “Consulting Fee”) upon execution of this Agreement by each of the parties hereto:
 

 (a)
 100,000 shares of the Company’s common stock (the “Shares”), which Shares shall, upon issuance, be fully paid and non-assessable shares in the Company’s common stock; and
 

 (b)
 Non-transferrable share purchase warrants to purchase an aggregate of 250,000 shares of the Company’s common stock at an exercise price of $0.50 per share for a period expiring on August 1, 2018 (the “Warrants”), which Warrants shall be substantially in the form attached as Exhibit A hereto.
 

 2.2
 In addition to the Consulting Fee, upon the submission of proper vouchers and other authorizations in accordance with the Company’s expense and reimbursement policies and procedures as may exist from time to time, the Company will reimburse the Consultant for all normal and reasonable travel and other specific expenses incurred by the Consultant during the Term and in connection with the performance by the Consultant of the Consulting Services.
 

 3.
 TERM OF SERVICES
 

 3.1
 The Consultant shall provide the Consulting Services to the Company for a term beginning on the date of this Agreement and continuing until the close of business on the first (1st) anniversary of the date of this Agreement (the “Termination Date”), unless this Agreement is terminated earlier or extended in accordance with the terms and conditions set forth in this Agreement (the “Term”)  
 

 2
 

 

 
 

 3.2
 The Company may terminate this Agreement prior to the Termination Date:  (i) at any time on sixty (60) days’ prior written notice upon the occurrence of any of the following events (each an “Event of Default”):
 

 (a)
 the Consultant’s commission of an act of fraud, theft or embezzlement or other similar willful misconduct;
 

 (b)
 the neglect or breach by the Consultant of his material obligations or agreements under this Agreement; or
 

 (c)
 the Consultant’s refusal to follow the lawful directives of the Board.
 

 provided, that written notice of the Event of Default has been delivered to the Consultant, and further provided, that the Consultant has failed to remedy such Event of Default within sixty (60) days of the date such written notice was delivered to the Consultant.
 

 3.3
 The Consultant may terminate this Agreement at any time prior to the Termination Date upon sixty (60) days’ prior written notice.
 

 4.
 PROPRIETARY INFORMATION AND DEVELOPMENTS
 

 4.1
 Confidential Information. The Consultant acknowledges and agrees that, during the course of providing the Consulting Services to the Company, he will have access to secret and confidential information relating to the Company (the “Confidential Information”) and that the following restrictive covenants are necessary to protect the interests and continued success of Company.  Except in the course of the performance of the duties of the Consultant hereunder during the Term in good faith for the sole and exclusive benefit of the Company and in accordance with such confidentiality practices as may be established from time to time by the Company, and except where required by law, the Consultant shall not disclose any Confidential Information to any person or entity at any time during or after the expiration or earlier termination of this Agreement.  As used in this Agreement, Confidential Information includes, without limitation, all information of a technical or commercial nature (such as information consisting of research and development, patents, trademarks and copyrights and applications thereto, formulas, codes, computer programs, software, methodologies, processes, innovations, software tools, know-how, knowledge, designs, drawings specifications, concepts, data, reports, techniques, documentation, pricing, marketing plans, customer and prospect lists, trade secrets, financial information, salaries, business affairs, suppliers, profits, markets, sales strategies, forecasts and personnel information), whether written or oral, relating to the Company or the business and affairs of the Company, its customers and/or other business associates identified in writing by the Company as being "Confidential Information."  The term "Confidential Information" shall not include information that (i) has been made available to the public generally through no fault of or no breach of any duty or obligation owed by the Consultant;  (ii) that the Company regularly gives to third parties without restriction on use or disclosure; (iii) that is shown by documentary evidence to have been independently developed by the Consultant after the date the Consultant ceases to act for the Company in any capacity, without access to or utilizing any relevant Confidential Information; or (iv) that has been received lawfully and in good faith after the date the Consultant ceases to act for the Company in any capacity from a third party who did not derive it from the Company.  If the Consultant is required by law, including, without limitation, by subpoena or civil discovery request, to disclose any Confidential Information, the Consultant shall immediately notify the Company in writing of the particulars of such requested disclosure and shall reasonably cooperate with the Company in seeking a protective order prohibiting or limiting such disclosure to the extent permitted by law.  In any event, the Consultant shall limit its disclosure of Confidential Information to that portion of such Confidential Information that it is legally required to disclose.
 

 4.2
 Creations. The Consultant acknowledges and agrees that all patents, copyrights, trademarks, service marks, trade secrets, inventions, discoveries, creations, devices, designs, specifications, processes, techniques, methods, procedures, analysis, know-how and other proprietary rights (including computer programs, source codes, object codes, technical documentation, forms, protocols, manuals, evaluation tools and methodologies), and any and all modifications, improvements and enhancements thereof, that are conceived, developed, made or reduced to practice by or under the 
 

 3
 

 

 
 direction of the Consultant (either alone or jointly with others), including, without limitation, all patentable works created by or under the direction of the Consultant and all copyrightable works created by or under the direction of the Consultant as “works made for hire” under applicable law, directly or indirectly arising from, related to or in connection with the properties, business, operations, opportunities or prospects of the Company (or any of its affiliates), or that are paid for by, or created at the direction of, the Company (or any of its affiliates), at any time during the period beginning on the date of this Agreement and ending on the date that Consultant ceases to act as a consultant (or any similar capacity) of the Company (or any of its affiliates) or the third anniversary of this Agreement, whichever is longer (the “Exclusive Period”) (collectively, “Creations”), shall be and remain the sole and exclusive property of the Company (or such affiliates).  In the event that any Creations are not “works made for hire” under applicable law, the Consultant shall, and hereby does, irrevocably and unconditionally assign and transfer all rights, title and interests in and to such Creations to the Company (or such affiliate), to the maximum extent permitted by applicable law, without further compensation and without warranty of the Consultant other than as to a warranty of no prior assignment of such rights, title and interests.  The Consultant further agrees (i) to disclose promptly to the Company all Creations that are conceived, developed, made or reduced to practice by or at the direction of the Consultant (either alone or jointly with others), (ii) to assign all rights, title and interests in such Creations to the Company (or its affiliate), to the maximum extent permitted by applicable law, without further compensation and without warranty of the Consultant other than as to a warranty of no prior assignment of such rights, title and interests, and (iii) to execute and deliver any and all applications, assignments or other instruments that the Company (or its affiliate) may deem necessary or desirable in order to permit the Company (or such affiliate), at its sole cost and expense, to perfect the assignment and transfer all rights, title and interests in and to such Creations to the Company (or such affiliate), and to apply for, prosecute, obtain and protect any and all patents, copyrights, trademarks, service marks, trade secrets or other proprietary rights in and to such Creations in the United States and foreign countries.  
 

 4.3
 Unrelated Creations.  Subject to Sections 4.4 and 4.5, Unrelated Creations shall not be deemed to be the property of the Company (or any its affiliates), and the Consultant shall have no obligations to the Company with respect to such Unrelated Creations.  “Unrelated Creations” means any patents, copyrights, trademarks, service marks, trade secrets, inventions, discoveries, creations, devices, designs, specifications, processes, techniques, methods, procedures, analysis, know-how or other proprietary rights conceived, developed, made or reduced to practice by or under the direction of the Consultant (either alone or jointly with others) (i) at any time during the Exclusive Period that are not directly or indirectly arising from, related or connection with the properties, business, operations, opportunities or prospects of the Company (or any of its affiliates), and/or that have not been paid for by, or created at the direction of, the Company (or any of its affiliates), or (ii) at any time after the expiration of the Exclusive Period, subject to Sections 4.4 and 4.5.
 

 4.4
 Non-Competition.  The Consultant agrees that during the period beginning on the date of this Agreement and ending on the date that the Consultant ceases to act for the Company in any capacity whatsoever (the “Restricted Period”), the Consultant will not, directly or indirectly, whether or not for compensation, be engaged in or have any financial interest in any business, wherever located, competing with or which may compete with the Company in any business that the Company is engaged in, or that the Consultant knows or reasonably should know, that the Company intends to engage in in each case during the Restricted Period (the “Company Business”).  For purposes of this Agreement, the Consultant will be deemed to be "engaged in or to have a financial interest in" a business if the Consultant is an owner, shareholder, employee, officer, director, partner, agent, consultant, service provider, representative, salesperson, advisor, investor, principal, joint venturer or member of or to any Person (defined below), which is engaged in such a business, or if the Consultant directly or indirectly receives remuneration from or performs services for such a Person, or if a member of such Consultant's Immediate Family (defined below) beneficially owns an equity interest, or interest convertible into equity, in any such entity; provided, however, that the foregoing will not prohibit the Consultant from owning, for the purpose of passive investment, less than 5% of any class of securities of a publicly held corporation actively traded on a national securities exchange, the U.S. over-the-counter securities markets or any foreign securities exchange or market.  “Person” means any individual, corporation, trust, association, partnership, proprietorship, joint venture or other entity.  “Immediate Family” means an individual’s spouse or children. 
 

 

 4
 

 

 
 

 4.5
 Non-Solicitation / Non-Interference.  During the Restricted Period the Consultant shall not, directly or indirectly, acting as an employee, owner, shareholder, partner, member, joint venturer, contractor, advisor, representative, officer, director, agent, salesperson, consultant, service provider, advisor, investor or principal of any Person:
 

 (a)
 solicit, advise, provide or sell, directly or indirectly, any services or products of the same or similar nature to services or products of the Company to any client or prospective client of the Company in the Company Business.  For purposes of this Agreement the term “prospective client” shall mean any Person or group of associated Persons whose business the Company has solicited at any time from the date of this Agreement to the date that the Consultant ceases to act for the Company in any capacity whatsoever (the “Service Period”);
 

 (b)
 solicit, request or otherwise attempt to induce or influence, directly or indirectly, any present client, distributor or supplier, or prospective client, distributor or supplier, of the Company, or other Persons sharing a business relationship with the Company, to cancel, limit or postpone their business with the Company, or otherwise take action which might be to the disadvantage of the Company; or
 

 (c)
 hire or solicit for employment, directly or indirectly, or induce or actively attempt to influence, any employee, officer, director, agent, contractor or other business associate of (i) the Company or (ii) of any other Person, if such Person's primary responsibilities were related to the Company during the Service Period to terminate his or, her employment or discontinue such person's consultant, contractor or other business association with the Company or the Company’s  affiliates.
 

 4.6
 Scope of Restrictive Covenants.  In the event that any of the provisions of this Article 4 should ever be adjudicated to exceed the time, geographic, product or service and/or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, product or service and/or other limitations permitted by applicable law.  If the covenants of this Article 4 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce such covenants in any other jurisdiction.
 

 4.7
 Injunctive Relief.  The Consultant acknowledges and agrees that in the event of a breach or threatened breach of the provisions of this Article 4, the Company may suffer irreparable harm and money damages alone would not afford the Company an adequate remedy and, therefore, the Company shall be entitled to obtain immediate injunctive relief, including, without limitation, a temporary restraining order and a preliminary and permanent injunction, in any court of competent jurisdiction (without being obligated to post a bond or other collateral) restraining the Consultant from such breach or threatened breach of the restrictive covenants contained in this Article 4.  Nothing in this Section shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including, without limitation, the recovery of monetary damages from the Consultant.
 

 5.
 PARTIES BENEFITED; ASSIGNMENTS
 

 5.1
 This Agreement shall be binding upon, and inure to the benefit of, the Consultant, his heirs and his personal representative or representatives, and upon the Company and its successors and assigns. Neither this Agreement nor any rights or obligations hereunder may be assigned by the Consultant.
 

 6.
 NOTICES
 

 6.1
 Any notice required or permitted by this Agreement shall be in writing, sent by registered or certified mail, return receipt requested, or by overnight courier, addressed to the Board and the Company at its then principal office, or to the Consultant at the address set forth in the preamble, as the case may be, or to such other address or addresses as any party hereto may from time to time specify in writing for the purpose in a notice given to the other parties in compliance with this Section 6.  Notices shall be deemed given when delivered.
 

 5
 

 

 
 

 7.
 GOVERNING LAW
 

 7.1
 This Agreement shall be governed by and construed in accordance with the laws of the State of Florida and each party hereto adjourns to the jurisdiction of the courts of the State of Florida. 
 

 8.
 REPRESENTATIONS AND WARRANTIES
 

 8.1
 The Consultant represents and warrants to the Company that (a) the Consultant is under no contractual or other restriction which is inconsistent with the execution of this Agreement, the performance of his duties hereunder or other rights of Company hereunder, and (b) the Consultant is under no physical or mental disability that would hinder the performance of his duties under this Agreement.
 

 9.
 MISCELLANEOUS
 

 9.1
 This Agreement contains the entire agreement of the parties relating to the subject matter hereof. 
 

 9.2
 This Agreement supersedes any prior written or oral agreements or understandings between the parties relating to the subject matter hereof.
 

 9.3
 No modification or amendment of this Agreement shall be valid unless in writing and signed by or on behalf of the parties hereto.
 

 9.4
 A waiver of the breach of any term or condition of this Agreement shall not be deemed to constitute a waiver of any subsequent breach of the same or any other term or condition. 
 

 9.5
 This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations. If any provision of this Agreement, or the application thereof to any person or circumstance, shall, for any reason and to any extent, be held invalid or unenforceable, such invalidity and unenforceability shall not affect the remaining provisions hereof and the application of such provisions to other persons or circumstances, all of which shall be enforced to the greatest extent permitted by law. 
 

 9.6
 The headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning of any provision hereof.
 

 9.7
 The Consultant acknowledges and agrees that O'Neill Law Corporation has acted solely as legal counsel for the Company and that the Consultant has been advised to obtain independent legal advice prior to execution of this Agreement.
 

 9.8
 During the Term, the Company agrees to use commercially reasonable efforts to maintain the registration of its Common Stock under Section 12(b) or 12(g) of the Securities Exchange Act of 1934.
 

 

 

 

 

 

 -- THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK –
 

 

 

 

 

 

 

 6
 

 

 
 

 9.9
 This Agreement may be executed in one or more counter-parts, each of which so executed shall constitute an original and all of which together shall constitute one and the same agreement.
 

 IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement as of the date first written above.
 

 

 

 

 /s/ Robert Lipp
 ROBERT LIPP
 

 

 TRITON EMISSION SOLUTIONS INC.
 by its authorized signatory:
 

 

 

 /s/ Rasmus Norling
 Paer Tomas Rasmus Norling
 Chief Executive Officer
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 7
 

 

 
 

 EXHIBIT A 
 TO THE CONSULTING AGREEMENT BETWEEN
 ROBERT LIPP AND TRITON EMISSION SOLUTIONS INC.
 

 FORM OF WARRANT
 

 THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
 

 THIS WARRANT MAY ONLY BE EXERCISED BY A PERSON WHO QUALIFIES AS AN “ACCREDITED INVESTOR” PURSUANT TO RULE 501 OF REGULATION D OF THE SECURITIES ACT.
 

 TRITON EMISSION SOLUTIONS INC.
 A DELAWARE CORPORATION
 

 NON-TRANSFERRABLE COMMON STOCK PURCHASE 
 WARRANT CERTIFICATE NUMBER 
 

 

 

 1.
 Issuance
 

 THIS IS TO CERTIFY THAT, for value received, ROBERT LIPP of Box 3516, Boynton Beach, FL 33424 (the “Holder”), shall have the right to purchase from TRITON EMISSION SOLUTIONS INC., a Delaware corporation (the “Company”), TWO HUNDRED FIFTY THOUSAND (250,000) fully paid and non-assessable shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) at any time until 5:00 P.M., Pacific time, on the 1st day of August, 2018, subject to earlier termination as set forth herein (the “Expiration Date”) at an exercise price of $0.50 per share (the "Exercise Price"), subject to further adjustments as set forth herein.  The shares of Common Stock issuable upon exercise of this Warrant are hereinafter referred to as the “Warrant Shares.”
  
 2.
 Terms Subject to Consulting Agreement
 

 This Warrant is subject to the terms and conditions set out in that Consulting Agreement between the Company and Robert Lipp (the “Consultant”) dated effective as of the 3rd day of September, 2014, as may be amended from time to time by the parties thereto (the “Consulting Agreement”), which terms and conditions are incorporated by reference herein.  
 

 The Holder’s right to exercise this Warrant shall terminate on the earliest of the following dates:
 

 (a)
 The Expiration Date;
 

 (b)
 Subject to subsection (c) below, the date which is ninety (90) days from the date on which the Consultant ceases to act as a consultant of the Company or any subsidiary of the Company; and
 

 

 

 1
 

 
 	
	 TRITON EMISSION SOLUTIONS INC.
 Non-Transferrable Common Stock Purchase 
 Warrant Certificate <#>

 

 

 

 (c)
 In the event of the termination of the Consultant as a consultant of the Company or any subsidiary of the Company as a result of an Event of Default (as that term is defined in the Consulting Agreement), the date on which the Consultant ceases to act as a consultant of the Company or any subsidiary of the Company.  Upon receipt of written notice of an Event of Default under the Consulting Agreement, the Consultant’s right to exercise this Warrant shall immediately be suspended pending (i) the cure or waiver of such Event of Default in accordance with the Consulting Agreement (upon which the Holder’s right to exercise this Warrant shall be restored); or (ii) the termination of the Consulting Agreement (upon which the Holder’s right to exercise this Warrant shall immediately be terminated) 
 

 Notwithstanding the foregoing, the Consultant will be deemed not to have ceased to act as a consultant of the Company or any subsidiary of the Company (the “Original Position”) if the Consultant continues to act as an employee, officer, director or consultant of the Company or a subsidiary of the Company in some other capacity immediately upon ceasing to act in the Original Position.
 

 3.
 Warrant Non-Transferrable
 

 This Warrant shall be not be transferrable except with the prior written consent of the Company (which consent may be withheld or delayed for any or no reason as determined by the Company in its sole and absolute discretion).  
 

 4.
 Exercise of Warrants
 

 This Warrant is exercisable in whole or in partial allotments of no less than 1,000 Warrant Shares at the Exercise Price per Warrant Share payable hereunder, payable in cash or by certified or official bank check. Upon surrender of this Warrant Certificate with the annexed Notice of Exercise Form duly executed, together with payment of the Exercise Price for the Warrant Shares purchased, the Holder shall be entitled to receive a certificate or certificates for the Warrant Shares so purchased.  No fractional shares shall be issued in connection with any exercise of this Warrant.  In lieu of the issuance of any fractional share, the Company shall round up or down the fractional amount to the nearest whole number.  In the event that the Warrant Shares exercised shall be less than the total number of Warrant Shares issuable as set forth above, the Company will issue a replacement Warrant Certificate to the Holder for the balance of the Warrant Shares so issuable.
 

 5.
 Adjustment to Exercise Price for Stock Dividends, Stock Splits, Reclassifications, Mergers, Etc.  
 

 The Exercise Price and the number of Warrant Shares which can be purchased by the Holder upon the exercise of this Warrant shall be subject to adjustment in the events and in the following manner:
 

 (1)
 If the Company (i) subdivides its then outstanding shares of Common Stock into a larger number of shares by way of any stock split, stock dividend, recapitalization or similar transaction, (ii) combines its then outstanding shares of Common Stock into a smaller number of shares of Common Stock by way of combination, reverse stock split, share consolidation or similar transaction, or (iii) pays or issues a stock dividend on its then outstanding shares of Common Stock or otherwise makes a distribution on its then outstanding shares of Common Stock that is payable or issuable pro rata in shares of Common Stock, the Exercise Price shall be adjusted to an amount equal to the product of the Exercise Price in effect immediately prior to such transaction, multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such transaction, and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such transaction, and the number of Warrant Shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged;
 

 

 2
 

 
 	
	 TRITON EMISSION SOLUTIONS INC.
 Non-Transferrable Common Stock Purchase 
 Warrant Certificate <#>

 

 

 

 (2)
 If the Company reclassifies its Common Stock (other than a change in par value or a subdivision or combination as provided for in Paragraph 6(1) above), or the Company enters into any reorganization, consolidation or merger of the Company with or into another corporation or entity (other than a merger or reorganization with respect to which the Company is the continuing corporation and which does not result in any reclassification of any class of common capital stock of the Company), or a transfer of all or substantially all of the assets of the Company, or the payment of a liquidating distribution then, as part of any such reorganization, reclassification, consolidation, merger, sale or liquidating distribution, lawful provision shall be made so that the Warrants will be assumed by the surviving or transferee entity and the holder of the Warrants shall have the right thereafter to receive upon the exercise thereof, the kind and amount of shares of stock or other securities or property, and in such proportion as adjusted, which the Holder would have been entitled to receive if, immediately prior to any such reorganization, reclassification, consolidation, merger, sale or liquidating distribution, as the case may be, the Holder had held the number of shares of common capital stock of the Company that were then purchasable upon the exercise of the Warrants. In any such case, appropriate adjustment (as reasonably determined by the Board of Directors of the Company) shall be made in the application of the provisions set forth herein with respect to the rights and interests thereafter of the holder of the Warrants such that the provisions of this Warrant (including provisions with respect to the Exercise Price) shall thereafter be applicable, as nearly as is reasonably practicable, in relation to any shares of stock or other securities or property thereafter deliverable upon the exercise of the Warrants; and
 

 (3)
 The adjustments provided for herein in the subscription rights represented by this Warrant are cumulative.
 

 6.
  Reservation of Shares
 

 The Company hereby agrees that at all times during the term of this Warrant there shall be reserved for issuance upon exercise of this Warrant such number of shares of Common Stock as shall be required for issuance of the Warrant Shares upon exercise of this Warrant.
 

 7.
 Mutilation or Loss of Warrant
 

 Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification, and (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will execute and deliver a new Warrant of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.
 

 8.
 Rights of the Holder
 

 The Holder shall not, by virtue hereof, be entitled to any rights as a stockholder in the Company, either at law or equity, and the rights of the Holder are limited to those expressed in this Warrant and and the Consulting Agreement are not enforceable against the Company except to the extent set forth herein and therein.
 

 9.
 US Securities Matters
 

 This Warrant and the Warrant Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and have been issued to the Holder for investment purposes and not with a view to the distribution of either the Warrant or the Warrant Shares.  Each certificate for the Warrant, the Warrant Shares and any other security issued or issuable upon exercise of this Warrant shall contain a legend on the face thereof, in form and substance satisfactory to counsel for the Company, setting forth the restrictions on transfer contained in this Section. The Holder understands that this Warrant and the Warrant Shares constitute “restricted securities” as defined in Rule 144.  By acceptance of this certificate, the Holder acknowledges and agrees that:
 

 

 3
 

 
 	
	 TRITON EMISSION SOLUTIONS INC.
 Non-Transferrable Common Stock Purchase 
 Warrant Certificate <#>

 

 

 

 (1)
 The Holder is acquiring this Warrant and the Warrant Shares for its own account for investment, with no present intention of dividing its interest with others or of reselling or otherwise disposing of all or any portion of the same;
 

 (2)
 The Holder does not intend any sale of this Warrant or the Warrant Shares either currently or after the passage of a fixed or determinable period of time or upon the occurrence or non-occurrence of any predetermined event or circumstance;
 

 (3)
 The Holder has no present or contemplated agreement, undertaking, arrangement, obligation, indebtedness or commitment providing for or which is likely to compel a disposition of this Warrant or the Warrant Shares;
 

 (4)
 The Holder is not aware of any circumstances presently in existence which are likely in the future to prompt a disposition of this Warrant or the Warrant Shares;
 

 (5)
 This Warrant and the Warrant Shares were offered to the Holder in direct communication between the Holder and the Company and not through any advertisement of any kind; and
 

 (6)
 The Holder has the financial means to bear the economic risk of the investment which it hereby agrees to make.
 

 All certificates representing the Warrant Shares will be endorsed with a legend substantially as follows:
 

 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”
 

 In addition, the Holder will comply with all other applicable securities legislation in addition to the Securities Act to which the Holder is subject in selling or transferring any Warrants or Warrant Shares and the Company may refuse to register any sale or transfer not in compliance with such other securities legislation.
 

 THIS WARRANT MAY ONLY BE EXERCISED BY A PERSON WHO QUALIFIES AS AN “ACCREDITED INVESTOR” PURSUANT TO RULE 501 OF REGULATION D OF THE SECURITIES ACT.
 

 10.
 Canadian Securities Matters
 

 By acceptance of this certificate, the Holder acknowledges and agrees that the Company is an “OTC reporting issuer” as that term is defined in MI 51-105, and that the Warrant Shares will be, issued and sold pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws.  The Holder further acknowledges and agrees that the Warrants and the Warrant Shares may not be traded in or from a jurisdiction in Canada unless such trade is made in accordance with the provisions of MI 51-105, the Holder will, and will cause its Affiliates to, comply with such conditions in making any trade of the Warrants or Warrant Shares in or from a jurisdiction in Canada and the Company will refuse to register any transfer of the Warrants or Warrant Shares made in connection with a trade of such securities in or from a jurisdiction in Canada and not made in accordance with the provisions of MI 51-105.  Notwithstanding the generality of the forgoing, as of the date hereof, MI 51-105 generally provides that securities may not be traded in or from a jurisdiction in Canada unless the following conditions have been met:
 

 

 4
 

 
 	
	 TRITON EMISSION SOLUTIONS INC.
 Non-Transferrable Common Stock Purchase 
 Warrant Certificate <#>

 

 

 

 (a)
 A four month period has passed from the later of (i) the date that the Company distributed the securities, and (ii) the date the securities were distributed by a control person of the Company;
 

 (b)
 If the person trading the Securities is a control person of the Company, such person has held the securities for at least 6 months;
 

 (c)
 The number of securities that the person proposes to trade, plus the number of securities of the same class that such person has traded in the preceding 12 months, does not exceed 5% of the Company’s outstanding securities of the same class;
 

 (d)
 The trade is made through an investment dealer registered in a jurisdiction in Canada;
 

 (e)
 The investment dealer executes the trade through any of the over-the-counter markets in the United States;
 

 (f)
 There has been no unusual effort made to prepare the market or create a demand for the securities;
 

 (i)
 No extraordinary commission or other consideration is paid to a person for the trade;
 

 (g)
 If the person trading the securities is an insider of the Company, the person reasonably believes that the Company is not in default of securities legislation; and
 

 (h)
 All certificates representing the securities bear the Canadian restrictive legend set out in Section 13(1) of MI 51-105.
 

 By acceptance of this certificate, the Holder represents and warrants to the Company that it is a resident of the jurisdiction set forth in the Holder’s address above, that it does not presently intend to trade the Warrants or the Warrant Shares in or from a jurisdiction in Canada.  If, after the date hereof, the Holder does intend to trade the Warrants or Warrant Shares in or from a jurisdiction in Canada, it will, prior to any such trade, re-submit all certificates representing the Shares to the Corporation for purposes of having the legend set out in Section 13(1) of MI 51-105 endorsed on such certificates.
 

 11.
 Warrant Non-Transferrable
 

 Notwithstanding any other provision to the contrary, except with the prior written consent of the Company, this Warrant shall be exercisable only by the Holder and shall not be transferable by the Holder.  
 

 12.
 Payment of Taxes
 

 The Company shall not be required to pay any tax or other charge imposed in connection with the exercise of this Warrant or a permissible transfer involved in the issuance of any certificate for shares issuable under this Warrant in the name other than that of the Holder, and in any such case, the Company shall not be required to issue or deliver any stock certificate until such tax or other charge has been paid or it has been established to the Company’s satisfaction that no such tax or other charge is due.
 

 13.
 Notices
 

 Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon, (a) by personal delivery or telecopy, or (ii) one business day after deposit with a nationally recognized overnight delivery service such as Federal Express, with postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by written notice to each of the other parties hereto.
 

 

 5
 

 
 	
	 TRITON EMISSION SOLUTIONS INC.
 Non-Transferrable Common Stock Purchase 
 Warrant Certificate <#>

 

 

 

 COMPANY:
 TRITON EMISSION SOLUTIONS INC.
 Attention: Chief Executive Officer 
 151 San Francisco Street Suite 201
 San Juan, Puerto Rico 00901
 

 Tel: 800-648-4287
 

 With a copy to:
 TRITON EMISSION SOLUTIONS INC.
 Attention: Chief Financial Officer 
 c/o 789 West Pender Street, Suite 810
 Vancouver, British Columbia
 Canada V6C 1H2
 

 HOLDER:
 At the address set forth above.
 

 14.
 Governing Law
 

 This Warrant shall be deemed to be a contract made under the laws of the State of Florida and for all purposes shall be governed by and construed in accordance with the laws of the State of Florida applicable to contracts to be made and performed entirely within the State of Florida.
 

 15.
 Status as Reporting Company
 

 Until the earlier of the time that (i) all of the Warrants hereunder have been exercised or (ii) the Holder’s right to exercise the Warrants hereunder have expired or been terminated, the Company will use commercially reasonable efforts to maintain the registration of its Common Stock under Section 12(b) or 12(g) of the Securities Exchange Act of 1934.
 

 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed and delivered by its duly authorized officer.
 

 

 TRITON EMISSION SOLUTIONS INC.
 by its authorized signatory:
 

 By: ______________________________
 

 Name: ___________________________
 

 Title: ____________________________
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 6
 

 
 NOTICE OF EXERCISE FORM
 

 TO:
 TRITON EMISSION SOLUTIONS INC.
 A Delaware corporation (the “Company”)
 

 Dear Sirs:
 

 The undersigned (the “Subscriber”) hereby exercises the right to purchase and hereby subscribes for 
 

 _________________________________________
 (Insert No. of Shares)
 

 shares (the “Warrant Shares”) of the common stock, par value $0.001 per share (the “Common Stock”) of TRITON EMISSION SOLUTIONS INC. referred to in the Non-Transferrable Common Stock Purchase Warrant Certificate  surrendered herewith according to the terms and conditions thereof and herewith makes payment by cash, certified check or bank draft of the purchase price in full for the Warrant Shares in accordance with the Warrant.
 

 Please issue a certificate for the shares being purchased as follows in the name of the Subscriber:
 

 	 	
	 NAME:
	  

	  
	 (Please Print)

	 ADDRESS:
	  

	 

 

	 

 

 The Subscriber represents and warrants to the Company that:
 

 (a)
 The Subscriber is an “accredited investor” as that term is defined in Rule 501 of Regulation D of the Securities Act of 1933 (the “Securities Act”);
 

 (b)
 The Subscriber has not offered or sold the Warrant Shares within the meaning of the Securities Act;
 

 (c)
 The Subscriber is acquiring the Warrant Shares for his own account for investment purposes, with no present intention of dividing his interest with others or of reselling or otherwise disposing of all or any portion of the same;
 

 (d)
 The Subscriber does not intend any sale of the Warrant Shares either currently or after the passage of a fixed or determinable period of time or upon the occurrence or non-occurrence of any predetermined event or circumstance;
 

 (e)
 The Subscriber has no present or contemplated agreement, undertaking, arrangement, obligation, indebtedness or commitment providing for or which is likely to compel a disposition of the Warrant Shares;
 

 (f)
 The Subscriber is not aware of any circumstances presently in existence which are likely in the future to prompt a disposition of the Warrant Shares;
 

 (g)
 The Warrant Shares were offered to the Subscriber in direct communication between the Subscriber and the Company and not through any advertisement of any kind;
 

 (h)
 The Subscriber has the financial means to bear the economic risk of the investment which it hereby agrees to make;
 

 (i)
 This subscription form will also confirm the Subscriber’s agreement as follows:
 

 1
 

 
 	
	  

 

 

 

 (i)
 The Warrant Shares have not been registered under the Securities Act or applicable state “Blue Sky” laws and, therefore, the Warrant Shares may not be resold, transferred or hypothecated except pursuant to an effective registration statement under the Securities Act and any applicable state “Blue Sky” laws, or an opinion of counsel satisfactory to the Company to the effect that such registration is not necessary.  The Company will refuse to register any sale or transfer of the Warrant Shares not made in compliance with the Securities Act or any other applicable securities laws.
 

 (ii)
 Only the Company can take action to register the Warrant Shares under the Securities Act or applicable state securities law or to comply with the requirements for an exemption under the Securities Act or applicable state securities law.
 

 (iii)
 The certificates representing the Warrant Shares will be endorsed with a legend substantially as follows:
 

 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”
 

 (j)
 The Subscriber acknowledges and agrees that the Company is an “OTC reporting issuer” as that term is defined in Canadian Multilateral Instrument MI 51-105 – Issuers Quoted in the U.S. Over-the-Counter Markets of the Canadian Securities Administrators (“MI 51-105”), and that the Warrant Shares will be, issued and sold pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws.  The Subscriber further acknowledges and agrees that the  Warrant Shares may not be traded in or from a jurisdiction in Canada unless such trade is made in accordance with the provisions of MI 51-105, the Subscriber comply with such conditions in making any trade of the Warrant Shares in or from a jurisdiction in Canada and the Company will refuse to register any transfer of the Warrant Shares made in connection with a trade of such securities in or from a jurisdiction in Canada and not made in accordance with the provisions of MI 51-105.  
 

 (k)
 The Subscriber represents and warrants to the Company that it is a resident of the jurisdiction set forth in the address provided below, that it does not presently intend to trade the Warrant Shares in or from a jurisdiction in Canada.  If, after the date hereof, the Subscriber does intend to trade the Warrant Shares in or from a jurisdiction in Canada, it will, prior to any such trade, re-submit all certificates representing the Shares to the Corporation for purposes of having the legend set out in Section 13(1) of MI 51-105 endorsed on such certificates.
 

 Please deliver a warrant certificate in respect of the common shares referred to in the warrant certificate surrendered herewith but not presently subscribed for, to the Subscriber.
 

 DATED this            day of                                                            ,          .
 

 	 	
	 Signature of Subscriber:
	  

	  
 Name of Subscriber:
	  

	  
 Address of Subscriber:
	  

	  
  
	  

 
 
 2

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