Document:

Unassociated Document

    

    FIRST
AMENDMENT TO REVOLVING CREDIT

    AND
SECURITY AGREEMENT

    

    THIS FIRST AMENDMENT TO REVOLVING
CREDIT AND SECURITY AGREEMENT (this “Agreement”) is entered into March 31, 2009
by and between BCI COMMUNICATIONS, INC., a corporation organized under the laws
of the State of Delaware (the “Borrower”), the financial institutions which are
now or which hereafter become a party hereto (collectively, the “Lenders” and
individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as agent
for Lenders (PNC, in such capacity, the “Agent”).

     

    RECITALS

     

    Whereas,
the Borrower and PNC entered into a certain Revolving Credit and Security
Agreement dated April 17, 2008 (as is being and may be further amended,
replaced, restated, modified and/or extended, the “Loan Agreement”);
and

     

    Whereas,
Borrower and PNC have agreed to modify the terms of the Loan Agreement as set
forth in this Agreement.

     

    Now,
therefore, in consideration of PNC’s continued extension of credit and the
agreements contained herein, the parties agree as follows:

     

    AGREEMENT

     

    
      	
              1)  

            	
              ACKNOWLEDGMENT OF
      BALANCE. Borrower acknowledges that the most recent statement of
      account sent to Borrower with respect to the Obligations is
      correct.

            

    

     

    
      	
              2)  

            	
              MODIFICATIONS.  The
      Loan Agreement be and hereby is modified as
  follows:

            

    

     

    (I)  The definition of “Revolving Interest
Rate” as set forth in Section 1.2 of the Loan Agreement is hereby deleted
and replaced with the following definition to read as follows:

     

    The
definition of “Revolving Interest
Rate” shall mean an interest rate per annum equal to (a) the sum of the
Alternate Base Rate plus two and one-fourth (2.25%) per cent with respect to
Domestic Rate Loans, and (b) the sum of the Eurodollar Rate plus three (3.00%)
percent with respect to Eurodollar Rate Loans.  However, in no event
shall Eurodollar Rate Loans be less than two and one-half (2.50%)
percent.

     

    (II)  Section 6.5 of the Loan
Agreement entitled “Financial Covenants”
is hereby deleted and a new Section 6.5 is replaced therefor to read as
follows:

     

    6.5.  Financial
Covenants.

     

    (a)  Minimum Undrawn
Availability: Cause, suffer or permit Undrawn Availability plus cash on
deposit at PNC to be less than: (1) Two Million Two Hundred Fifty Thousand
($2,250,000) Dollars as of March 31, 2009, or (2) Three Million Five Hundred
Thousand ($3,500,000) Dollars as of June 30, 2009;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)  Fixed Charge Coverage
Ratio:  Cause to be maintained at all times a Fixed Charge
Coverage Ratio of not less than (1) 1.00 to 1.00 from July 1, 2009 through
September 30, 2009,  (2) 1.10 to 1.00 from October 1, 2009 through
June 30, 2010, tested quarterly on a building four (4) quarter basis, and (3)
1.10 to 1.00 thereafter, tested quarterly on a rolling four (4) quarter
basis;

     

    (c)  Minimum
EBITDA:  Cause, suffer or permit EBITDA to be less than (1) Two
Million Six Hundred Twenty-Two Thousand ($2,622,000) Dollars for the trailing
twelve months ending March 31, 2009, or (2) One Million Five Hundred Thousand
($1,500,000) Dollars for the fiscal quarter ending June 30, 2009.

     

    
      	
              3)  

            	
              WAIVER OF FINANCIAL COVENANT
      DEFAULT.  The Agent hereby waives compliance by the
      Borrower with respect to the Fixed Charge Coverage Ratio contained in
      Section 6.5(a) of the Loan Agreement for the fiscal quarter beginning
      October 1, 2008 and ending December 31, 2008.  Except as
      specifically waived herein, all other terms and conditions as set forth in
      the Loan Agreement shall remain in full force and
  effect.

            

    

     

    
      	
              4)  

            	
              PRECONDITIONS.  As
      preconditions to the effectiveness of any of the modifications, consents,
      or waivers contained herein, the Borrower agrees to provide the Agent with
      the following: (1) This Agreement and the Guarantor’s Ratification,
      properly executed, (2) a waiver fee in the amount of $15,000, and (3)
      Lender’s counsel’s fees.

            

    

     

    
      	
                
      4) 

            	
              MISCELLANEOUS.  This
      Agreement shall be construed in accordance with and governed by the laws
      of the State of New Jersey, without reference to that state’s conflicts of
      law principles.  This Agreement, the Loan Agreement and the
      Other Documents constitute the sole agreement of the parties with respect
      to the subject matter thereof and supersede all oral negotiations and
      prior writings with respect to the subject matter thereof.  No
      amendment of this Agreement, and no waiver of any one or more of the
      provisions hereof shall be effective unless set forth in writing and
      signed by the parties hereto.  The illegality, unenforceability
      or inconsistency of any provision of this Agreement shall not in any way
      affect or impair the legality, enforceability or consistency of the
      remaining provisions of this Agreement, the Loan Agreement or the Other
      Documents.  This Agreement, the Loan Agreement and the Other
      Documents are intended to be consistent.  However, in the event
      of any inconsistencies among this Agreement, the Loan Agreement and/or any
      of the Other Documents, the terms of this Agreement, then the Loan
      Agreement, shall control.  This Agreement may be executed in any
      number of counterparts and by the different parties on separate
      counterparts.  Each such counterpart shall be deemed an
      original, but all such counterparts shall together constitute one and the
      same agreement.

            

    

     

    
      	
                
      5)

            	
              DEFINITIONS.  The
      terms used herein and not otherwise defined or modified herein shall have
      the meanings ascribed to them in the Loan Agreement.  The terms
      used herein and not otherwise defined or modified herein or defined in the
      Loan Agreement shall have the meanings ascribed to them by the Uniform
      Commercial Code as enacted in State of New
  Jersey.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    IN WITNESS WHEREOF, the
undersigned have signed and sealed this Agreement the day and year first above
written.

    

      
        
          
            
              	ATTEST:    	 	 BCI
      COMMUNICATIONS, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
                      /s/
      Nicholas Day  

                    	 	By:	
                      /s/
      Raymond A. Cardonne, Jr.

                    	 
	
                      Name:
      Nicholas Day  

                    	 	Name:	
                      Raymond
      A. Cardonne, Jr.

                    	 
	
                      Title: General
      Counsel and Secretary  

                    	 	      
                      Title:

                    	
                      Chief Financial Officer and Treasurer

                    	 

            

          

        

      

    

     

    
      

      
        
          
            
              	ATTEST:  	 	BERLINER
      COMMUNICATIONS, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
                      /s/
      Nicholas Day  

                    	 	By:	
                      /s/
      Raymond A. Cardonne, Jr.

                    	 
	
                      Name:
      Nicholas Day  

                    	 	Name:	
                      Raymond
      A. Cardonne, Jr.

                    	 
	
                      Title: General
      Counsel and Secretary  

                    	 	      
                      Title:

                    	
                      Chief Financial Officer and Treasurer

                    	 

            

          

        

      

       

      
        

          
            
              
                	 	 	      
                        PNC
      BANK, NATIONAL ASSOCIATION

                        Lender
      and as Agent

                      	 
	 	 	 	 	 
	
                        /s/

                      	 	By:	
                              
                          /s/
      John D. Trott

                        

                      	 
	
                        Name:

                      	 	Name:	
                        
                          /s/
      John D. Trott

                        

                      	 
	
                        Title: 

                      	 	      
                        Title:

                      	
                        
                          Vice
      PresidentUnassociated Document

    NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
ANY STATE SECURITIES LAW.  THE COMPANY WILL NOT TRANSFER THIS WARRANT,
OR ANY SHARES OF COMMON SHARES ISSUABLE UPON EXERCISE, UNLESS (i) THERE IS AN
EFFECTIVE REGISTRATION COVERING THIS WARRANT OR SHARES UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS, (ii) IT FIRST RECEIVES AN OPINION OF COUNSEL,
IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY, STATING THAT
THE PROPOSED TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE ACT AND UNDER ALL
APPLICABLE STATE SECURITIES LAWS, OR (iii) THE TRANSFER IS MADE PURSUANT TO RULE
144 PROMULGATED UNDER THE ACT.

     

    Warrant
Holder:  «Name»

     Dated:  _________,
200_

    

    
      	
              For
      the Purchase of «Warrant» Shares of Common Stock

            	
              No.
      «Number»

            

    

     

    WARRANT
FOR THE PURCHASE OF

    SHARES
OF COMMON STOCK OF

     

    DEER
CONSUMER PRODUCTS, INC.

     

    Expiring
Three Years from the Date Hereof

     

    FOR VALUE
RECEIVED, Deer Consumer Products, Inc. (“Company”), hereby certifies that the
Warrant Holder specified above, or his registered assigns (“Registered Holder”),
is entitled, subject to the terms set forth below, to purchase from the Company
on or before the third anniversary of the date hereof, that number of shares of
Common Stock, $.001 par value, of the Company (“Common Stock”) set forth above,
at a purchase price equal to $1.50 per share (as may be adjusted as provided
below) upon the terms and conditions set forth herein.  The number of
shares of Common Stock purchasable upon exercise of this Warrant, and the
purchase price per share, each as adjusted from time to time pursuant to the
provisions of this Warrant, are hereinafter referred to as the “Warrant Shares”
and the “Exercise Price,” respectively.

     

    1. Registration of Transfers
and Exchanges.

     

    (i) The
Company shall register the transfer of any portion of this Warrant in the
Warrant Register, upon surrender of this Warrant, with the Form of Assignment
attached hereto duly completed and signed, to the Transfer Agent or to the
Company, provided, however, that the Holder shall not make any transfers to any
transferee pursuant to this Section for the right to acquire less than 50,000
Warrant Shares (or the balance of the Warrant Shares to which this Warrant
relates).  Upon any such registration or transfer, a new warrant to
purchase Common Stock, in substantially the form of this Warrant (any such new
warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred
shall be issued to the transferee and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the
transferring Holder.  The acceptance of the New Warrant by the
transferee thereof shall be deemed the acceptance of such transferee of all of
the rights and obligations of a holder of a Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) This
Warrant is exchangeable, upon the surrender hereof by the Holder to the office
of the Company for one or more New Warrants, evidencing in the aggregate the
right to purchase the number of Warrant Shares which may then be purchased
hereunder.  Any such New Warrant will be dated the date of such
exchange.

     

    2. Exercise.

     

    (i) Procedure for
Exercise.  Subject to the conditions and terms set forth
herein, this Warrant may be exercised by the Registered Holder (“Conversion
Right”), in whole or in part, by the surrender of this Warrant (with the Notice
of Exercise Form attached hereto as Exhibit 1 duly executed by such Registered
Holder) at the principal office of the Company, or at such other office or
agency as the Company may designate, accompanied by payment in full, in lawful
money of the United States, of an amount equal to the then applicable Exercise
Price multiplied by the number of Warrant Shares then being purchased upon such
exercise.

     

    (ii)
Exercise of Conversion
Right.  Subject to the terms and conditions set forth herein,
the Conversion Right may be exercised by the Holder on any business day by
delivering to the Company the Warrant with a duly executed Notice of Exercise
Form attached hereto as Exhibit 1 with the conversion section completed by
specifying the total number of shares of Common Stock the Registered Holder will
purchase pursuant to such conversion.

     

    (iii)
Date of
Exercise.  Each exercise of this Warrant shall be deemed to
have been effected immediately prior to the close of business on the day on
which this Warrant shall have been surrendered to the Company.  At
such time, the person or persons in whose name or names any certificates for
Warrant Shares shall be issuable upon such exercise shall be deemed to have
become the holder or holders of record of the Warrant Shares represented by such
certificates.

     

    (iv)
Issuance of
Certificate.  As soon as practicable after the exercise of the
purchase right represented by this Warrant, the Company at its expense will
cause to be issued in the name of, and delivered to, the Registered Holder, or,
subject to the terms and conditions hereof, to such other individual or entity
as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct:

     

    (a) a
certificate or certificates for the number of full shares of Warrant Shares to
which such Registered Holder shall be entitled upon such exercise plus, in lieu
of any fractional share to which such Registered Holder would otherwise be
entitled, cash in an amount determined pursuant to Section 4 hereof,
and

     

    (b) in
case such exercise is in part only, a new warrant or warrants (dated the date
hereof) of like tenor, stating on the face or faces thereof the number of shares
currently stated on the face of this Warrant minus the number of such shares
purchased by the Registered Holder upon such exercise as provided in subsection
2(i) above.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (v) Exercise of
Warrant.  The Warrant may be exercised in whole or from time to
time in part on or prior to the third anniversary of the date hereof, as first
set forth above.

     

    3. Adjustments.

     

    (i) Split, Subdivision or
Combination of Shares.  If, at any time while this Warrant
remains outstanding and unexpired, the outstanding shares of the Company’s
Common Stock shall be subdivided or split into a greater number of shares, or a
dividend in Common Stock shall be paid in respect of Common Stock, the Exercise
Price in effect immediately prior to such subdivision or at the record date of
such dividend shall, simultaneously with the effectiveness of such subdivision
or split or immediately after the record date of such dividend (as the case may
be), shall be proportionately decreased.  If the outstanding shares of
Common Stock shall be combined or reverse-split into a smaller number of shares,
the Exercise Price in effect immediately prior to such combination or reverse
split shall, simultaneously with the effectiveness of such combination or
reverse split, be proportionately increased.  When any adjustment is
required to be made in the Exercise Price, the number of shares of Warrant
Shares purchasable upon the exercise of this Warrant shall be changed to the
number determined by dividing (i) an amount equal to the number of shares
issuable upon the exercise of this Warrant immediately prior to such adjustment,
multiplied by the Exercise Price in effect immediately prior to such adjustment,
by (ii) the Exercise Price in effect immediately after such
adjustment.

     

    (ii)
Reclassification,
Reorganization, Consolidation or Merger.  In the case of any
reclassification of the Common Stock (other than a change in par value or a
subdivision or combination as provided for in subsection 3(i) above), or any
reorganization, consolidation or merger of the Company with or into another
corporation (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 the Common Stock), 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
Registered Holder of this Warrant shall have the right thereafter to receive
upon the exercise hereof, the kind and amount of shares of stock or other
securities or property which such Registered 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,
such Registered Holder had held the number of shares of Common Stock which were
then purchasable upon the exercise of this Warrant.  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 Registered Holder of
this Warrant such that the provisions set forth in this Section 3 (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 this
Warrant.

     

    (iii)
Price
Adjustment.  No adjustment in the per share Exercise Price
shall be required unless such adjustment would require an increase or decrease
in the Exercise Price of at least $0.01; provided, however, that any adjustments
which by reason of this paragraph are not required to be made shall be carried
forward and taken into account in any subsequent adjustment.  All
calculations under this Section 3 shall be made to the nearest cent or to the
nearest 1/100th of a share, as the case may be.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iv)
No
Impairment.  The Company will not, by amendment of its Articles
of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Company but will at all
times in good faith assist in the carrying out of all the provisions of this
Section 3 and in the taking of all such actions as may be necessary or
appropriate in order to protect against impairment of the rights of the
Registered Holder of this Warrant to adjustments in the Exercise
Price.

     

    (v) Notice of
Adjustment.  Upon any adjustment of the Exercise Price or
extension of the Warrant exercise period, the Company shall forthwith give
written notice thereto to the Registered Holder of this Warrant describing the
event requiring the adjustment, stating the adjusted Exercise Price and the
adjusted number of shares purchasable upon the exercise hereof resulting from
such event, and setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based.

     

    4. Fractional
Shares.  The Company shall not be required to issue fractions
of shares of Common Stock upon exercise.  If any fractions of a share
would, but for this Section 4, be issuable upon any exercise, in lieu of such
fractional share the Company shall round up or down to the nearest whole
number.

     

    5. Limitation on
Sales.  Each holder of this Warrant acknowledges that this
Warrant and the Warrant Shares, as of the date of original issuance of this
Warrant, have not been registered under the Securities Act of 1933, as amended
(“Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or
otherwise dispose of this Warrant or any Warrant Shares issued upon its exercise
in the absence of (i) an effective registration statement under the Act as to
this Warrant or such Warrant Shares or (ii) an opinion of counsel, reasonably
acceptable to the Company and its counsel, that such registration and
qualification are not required.  The Warrant Shares issued upon
exercise thereof shall be imprinted with a legend in substantially the following
form:

     

    "THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
APPLICABLE STATE SECURITIES LAWS, AND ACCORDINGLY MAY NOT BE OFFERED FOR SALE,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR IN A TRANSACTION NOT
SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AND IN THE CASE OF A
TRANSACTION EXEMPT FROM REGISTRATION, THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND UNDER ALL APPLICABLE
STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES
ACT."

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    6. Notices of Record
Date.  In case:  (i) the Company shall take a record
of the holders of its Common Stock (or other stock or securities at the time
deliverable upon the exercise of this Warrant) for the purpose of entitling or
enabling them to receive any dividend or other distribution, or to receive any
right to subscribe for or purchase any shares of any class or any other
securities, or to receive any other right, or (ii) of any capital reorganization
of the Company, any reclassification of the capital stock of the Company, any
consolidation or merger of the Company with or into another corporation (other
than a consolidation or merger in which the Company is the surviving entity), or
any transfer of all or substantially all of the assets of the Company, or (iii)
of the voluntary or involuntary dissolution, liquidation or winding-up of the
Company, then, and in each such case, the Company will mail or cause to be
mailed to the Registered Holder of this Warrant a notice specifying, as the case
may be, (i) the date on which a record is to be taken for the purpose of such
dividend, distribution or right, and stating the amount and character of such
dividend, distribution or right, or (ii) the effective date on which such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up is to take place, and the time, if any is to be fixed,
as of which the holders of record of Common Stock (or such other stock or
securities at the time deliverable upon the exercise of this Warrant) shall be
entitled to exchange their shares of Common Stock (or such other stock or
securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up.  Such notice shall be mailed at least ten
(10) days prior to the record date or effective date for the event specified in
such notice, provided that the failure to mail such notice shall not affect the
legality or validity of any such action.

     

    7. Reservation of
Stock.  The Company will at all times reserve and keep
available, solely for issuance and delivery upon the exercise of this Warrant,
such shares of Common Stock and other stock, securities and property, as from
time to time shall be issuable upon the exercise of this Warrant.  So
long as this Warrant remains outstanding, the Company shall maintain the listing
of the shares of Common Stock to be issued upon exercise on each national
securities exchange on which Common Stock is listed (on the Nasdaq
Over-The-Counter service if the Common Stock is then quoted on such
service/bulletin board).

     

    8. Replacement of
Warrants.  Upon receipt of evidence reasonably satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant and
(in the case of loss, theft or destruction) upon delivery of an indemnity
agreement (with surety if reasonably required) in an amount reasonably
satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new
Warrant of like tenor.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    9. Transfers,
etc.

     

    (i) Warrant
Register.  The Company will maintain a register containing the
names and addresses of the Registered Holders of this Warrant.  Any
Registered Holder may change its, his or her address as shown on the warrant
register by written notice to the Company requesting such change.

     

    (ii)
Registered
Holder.  Until any transfer of this Warrant is made in the
warrant register, the Company may treat the Registered Holder of this Warrant as
the absolute owner hereof for all purposes; provided, however, that if and when
this Warrant is properly assigned in blank, the Company may (but shall not be
obligated to) treat the bearer hereof as the absolute owner hereof for all
purposes, notwithstanding any notice to the contrary.

     

    10. No Rights as
Stockholder.  Until the exercise of this Warrant, the
Registered Holder of this Warrant shall not have or exercise any rights by
virtue hereof as a stockholder of the Company.

     

    11. Successors.  The
rights and obligations of the parties to this Warrant will inure to the benefit
of and be binding upon the Company and any transferees of Warrant
Holder.

     

    12. Change or
Waiver.  Any term of this Warrant may be changed or waived only
by an instrument in writing signed by the party against which enforcement of the
change or waiver is sought.

     

    13. Headings.  The
headings in this Warrant are for purposes of reference only and shall not limit
or otherwise affect the meaning of any provision of this Warrant.

     

    14. Governing
Law.  This Warrant shall be governed by and construed in
accordance with the laws of the state of New York, without giving effect to
principles of conflicts of laws.

     

    15. Jurisdiction and
Venue.  The Company (i) agrees that any legal suit, action or
proceeding arising out of or relating to this Warrant shall be instituted
exclusively in any state court located in New York, New York or in the United
States District Court for the Southern District of New York, (ii) waives any
objection to the venue of any such suit, action or proceeding and the right to
assert that such forum is not a convenient forum for such suit, action or
proceeding, and (iii) irrevocably consents to the jurisdiction of any state
court located in New York, New York and the United States District Court for the
Southern District of New York in any such suit, action or proceeding, and the
Company further agrees to accept and acknowledge service or any and all process
which may be served in any such suit, action or proceeding in any state court
located in New York, New York or in the United States District Court for the
Southern District of New York and agrees that service of process upon it mailed
by certified mail to its address shall be deemed in every respect effective
service of process upon it in any suit, action or proceeding.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    16. Mailing of Notices,
etc.  All notices and other communications under this Warrant
(except payment) shall be in writing and shall be sufficiently given if sent to
the Registered Holder or the Company, as the case may be, by hand delivery,
private overnight courier, with acknowledgment of receipt, or by registered or
certified mail, return receipt requested, as follows:

     

    Registered
Holder:  To Registered Holder’s address as provided on the
Subscription Agreement or otherwise in the Company’s Records.

     

    The
Company:  To the Company’s Principal Executive Offices Attention:
President and Chief Executive Officer.

     

    (with a
copy, which shall not constitute notice to):

     

    The
Newman Law Firm, PLLC

     

    14 Wall
Street, 20th
Floor

     

    New York,
NY  10005

     

    or to
such other address as any of them, by notice to the others may designate from
time to time.  Time shall be counted to, or from, as the case may be,
the date of delivery in person or by overnight courier or five (5) business days
after mailing.

     

    
      
        	 	DEER CONSUMER
      PRODUCTS, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	Name:  Ying
      He	 
	 	Title:   Chief
      Executive Officer	 
	 	 	 	 

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
1

    

    NOTICE OF
EXERCISE

     

    Date:                                      

    TO:           Deer
Consumer Products, Inc.

    Area 2,
1/F, Building M-6, Central High-Tech Industrial Park, Nanshan, Shenzhen, Peoples
Republic of China

    Attn: Mr.
Ying He, Chief Executive Officer

    

    

    1. The
undersigned hereby elects to purchase ______ shares of the Common Stock of Deer
Consumer Products, Inc. pursuant to terms of the attached Warrant, and tenders
herewith payment of $______ (at the rate of $_____ per share of Common Stock) in
payment of the Exercise Price(s) pursuant thereto, together with all applicable
transfer taxes, if any.

     

    2. Please
issue a certificate or certificates representing said shares of the Common Stock
in the name of the undersigned or in such other name as is specified
below.

     

    
      	 	 
	 	 Signature of
      Registered Holder
	 	 
	 	 Print
      Name:
	 	 

    

     

    Notice:  The
signature to this form must correspond with the name as written upon the face of
the within Warrant in every particular without alteration or enlargement or any
change whatsoever.

     

    INSTRUCTIONS
FOR REGISTRATION OF SECURITIES

     

    
      	Name:  	 
	 	
               (Print in
      Block Letters

            

    

     

           

      	Address:      	 

                                                                                

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
2

    

    [To be
completed and signed only upon transfer of Warrant]

    

    

    FOR VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers unto
__________________________ the right represented by the within Warrant to
purchase______ shares of Common Stock of Deer Consumer Products, Inc. to which
the within Warrant relates and appoints _____________________________ attorney
to transfer said right on the books of Deer Consumer Products, Inc. with full
power of substitution in the premises.

     

    Dated:

     

    ______________,
____

     

     

    
    

     

    
      	 	 
	 	(Signature must
      conform in all respects to name of holder as specified on the face of the
      Warrant)
	 	 
	 	Address of
      Transferee
	 	 
	 	 
	 	 
	 	  

    

     

    In the
presence of:

     

    _______________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]