Document:

Deerfield Resources, Ltd.: Exhibit 4.1 - Prepared by TNT Filings Inc.

Exhibit 4.1

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
REASONABLY ACCEPTABLE TO THE COMPANY.  NOTWITHSTANDING THE FOREGOING, THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR REFINANCING ARRANGEMENT
SECURED BY SUCH SECURITIES. 

THE REGISTERED HOLDER OF THIS WARRANT IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (COPIES OF WHICH ARE AVAILABLE AT THE PRINCIPAL EXECUTIVE OFFICE OF THE ISSUER). 

DEERFIELD RESOURCES, LTD.

WARRANT TO PURCHASE COMMON STOCK

VOID AFTER 5:30 P.M. EASTERN

TIME ON THE EXPIRATION DATE

	
NO. _________	
    Original Issue Date: February 10, 2010

FOR VALUE RECEIVED, DEERFIELD RESOURCES, LTD., a Nevada corporation (the "Company"), hereby certifies that ________________ or its registered assigns (the
"Holder"), is entitled to purchase
from the Company under the terms as hereinafter set forth, __________________(_____________) fully paid and non-assessable shares of the Company's Common Stock, par value $.001 per share (the
"Warrant Stock"),
at any time and from time to time, but no later than 5:30 p.m., Eastern Time, on the Expiration Date (as hereinafter defined), at a purchase price of ONE DOLLAR AND SIXTY CENTS ($1.60) per share (the
"Exercise Price"). The number of
shares of Warrant Stock to be so issued and the Exercise Price are subject to adjustment in certain events as hereinafter set forth. The term
"Common Stock" shall mean, when used herein, unless the context otherwise requires, the stock and
other securities and property at the time receivable upon the exercise of this Warrant. 

RECITALS

A. 

This Warrant is one of the Warrants delivered in connection with the Company's private placement (the
"Offering") to accredited investors a minimum of 50 Units and a maximum of 80 Units at a purchase
price of $125,000 per Unit, or up to 96 Units if the Company elects to accept over-subscriptions, with each Unit (the
"Units") consisting of 100,000 shares of the Company's common stock, par value $.001 per share (the
"Common Stock"), and a five-year detachable warrant (the "Warrant") to purchase 50,000 shares of Common Stock with an exercise price of $1.60 per share. The Common Stock and Warrants comprising the Units, and the shares of
Common Stock underlying
the Warrants are collectively referred to as the Securities."  Capitalized terms used herein but not defined shall have the meaning given to such terms in the Subscription Agreement. 

B. 

The Company is delivering this Warrant in reliance upon the exemption from
securities registration afforded by the provisions of Regulation D ("Regulation
D") or as promulgated by the United States Securities and Exchange Commission
(the "Commission") under the Securities Act. 

C. 

Contemporaneously with the execution and delivery of this Warrant, the Company and Holder, among others, are executing and delivering (i) a Subscription Agreement (the
"Subscription Agreement"); (ii) a
Registration Rights Agreement (the "Registration Rights Agreement"); and (iii) the Lock-up Agreement (the
"Lock-up Agreement"). This Warrant, the Registration Rights Agreement, the
Subscription Agreement and Lock-up Agreement are sometimes hereinafter
collectively referred to as the "Transaction Documents." 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in the Transaction Documents, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company
hereby agrees as follows: 

	
1. 		
Exercise of Warrant.

	
	 	 	 
		
a. 		
To effect exercises hereunder, the Holder shall not be required to physically surrender this Warrant unless the aggregate Warrant Shares represented by this Warrant is being exercised. The Holder may exercise this Warrant
according to its terms by delivery of the Exercise Notice (in the form attached as Warrant Exhibit A hereto) to the Company, along with a Warrant Shares Log (in the form attached as Warrant Exhibit B hereto) at the Company's
address for notice set forth herein, together with payment of the Exercise Price multiplied by the number of Warrant Stock that the Holder intends to purchase hereunder, prior to 5:30 p.m., Eastern Time, on February 9, 2015 (the
"Expiration
Date").

	
	 	 	 
		
b. 		
No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. The Company shall pay cash in lieu of fractions with respect to the Warrants based upon the fair market value of such
fractional shares of Warrant Stock (which shall be the closing price of such shares on the exchange or market on which the Warrant Stock is then traded) at the time of exercise of this Warrant.

	
	 	 	 
		
c. 		
In the event of any exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Stock so purchased, registered in the name of the Holder, shall be delivered to the Holder within a reasonable
time after such rights shall have been so exercised. The person or entity in whose name any certificate for the Warrant Stock is issued upon exercise of the rights represented by this Warrant shall for all purposes be deemed to have become the
holder of record of such shares immediately prior to the close of business on the date on which the Warrant was surrendered and payment of the Exercise Price and any applicable taxes was made, irrespective of the date of delivery of such
certificate, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the opening of business on the next
succeeding date on which the stock transfer books are open. The Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of shares of Warrant Stock on exercise of this
Warrant.

	

	
2. 		
Disposition of Warrant Stock and Warrant.

	
	 	 	 
		
a. 		
Except as expressly permitted by this Section 2, the Holder shall not, whether directly or indirectly, transfer any right, title or interest on this Warrant to any person (in each such case, a
"Transferee"). The Holder
hereby agrees that it will not sell or transfer all or any part of this Warrant unless and until it shall first have given written notice to the Company of its intention to transfer the Warrant, which shall include (i) a description of the
securities to be transferred, (ii) the identity of the prospective Transferee, and (iii) the consideration and the material terms and conditions upon which the proposed transfer is to be made. Any attempt to Transfer all or any portion of this
Warrant in violation of Section 13 shall be null and void, and the Company shall not register any such Transfer. Nothing in this Warrant, however, shall restrict the Holder from engaging in derivative transactions with respect to securities of the
Company. The foregoing restriction shall not apply to transfers: (i) to the Holder's direct or indirect wholly-owned subsidiaries of the Holder; (ii) to any spouse or member of an individual Holder's immediate family, or to a custodian,
trustee (including a trustee of a voting trust), executor, or other fiduciary for the account of the individual Holder's spouse or members of the individual Holder's immediate family, or to a trust for the individual Holder's own
self, or a charitable remainder trust; or (iii) any bona fide gift to any charitable organization described in Section 501(c)(3) of the Internal Revenue Code; provided, however, that in the event of any transfer made pursuant to one of the
exemptions hereunder, each such transferee or assignee, prior to the completion of the transfer, shall have executed documents assuming the obligations of the Holder under this Warrant with respect to the transferred securities.

	
	 	 	 
		
b. 		
All certificates shall bear the restrictive legend specified in the cover page of this Warrant only to the extent required by applicable law and as specified in the Transaction Documents. The Warrant Stock shall otherwise be
freely transferable on the books and records of the Company as and to the extent permitted by applicable law and provided by this Agreement and the Registration Rights Agreement. If the Holder (i) provides the Company with an opinion of counsel
reasonably satisfactory to the Company that registration by the Holder of the Warrant Stock is not required under the Securities Act, or (ii) transfers securities to an affiliate which is an accredited investor (in accordance with the provisions of
this Agreement) or in compliance with Rule 144, then in either instance the Company shall permit the said transfer, and if applicable promptly instruct its transfer agent to issue one or more certificates in such name and in such denominations as
specified by the Holder.

	
	 	 	 
		
c. 		
The legend shall be removed and the Company shall issue a certificate without such legend to the holder of any Warrant Stock upon which it is stamped, and a certificate for such Warrant Stock shall be originally issued without the
legend, if, unless otherwise required by state securities laws, (i) the sale of such Warrant Stock is registered under the Securities Act, or (ii) the Holder provides the Company with an opinion by counsel reasonably satisfactory to the Company,
that is in form, substance and scope reasonably satisfactory to the Company, to the effect that a public sale or Transfer of such Warrant Stock may be made without registration under the Securities Act or (iii) the Holder provides the Company with
assurances reasonably satisfactory to the Company and its counsel, that such Warrant Stock can be sold pursuant to Rule 144. The Holder agrees that its sale of all Warrant Stock, including those represented by a certificate(s) from which the legend
has been removed, or which were originally issued without the legend, shall be made only pursuant to an effective registration statement (and to deliver a prospectus in connection with such sale) or in compliance with an exemption from the
registration requirements of the Securities Act. In the event the legend is removed from any Warrant Stock or any Warrant Stock is issued without the legend and thereafter the effectiveness of a registration statement covering the sales of such Warrant Stock is suspended or the Company determines that a supplement or amendment thereto is required by applicable
securities laws, then upon reasonable advance notice to the holder of such Warrant Stock, the Company shall be entitled to require that the legend be placed upon any such Warrant Stock which cannot then be sold pursuant to an effective registration
statement or Rule 144 or with respect to which the opinion referred to in clause (i) next above has not been rendered, which legend shall be removed when such Warrant Stock may be sold pursuant to an effective registration statement or Rule 144 (or
the holder thereof provides the opinion with respect thereto described in clause (i) next above.

	

	
3. 		
Cashless Exercise

	
	 	 	 
		
a. 		
If a registration statement covering the Warrant Stock filed in connection with the Offering (a
"Registration Statement") is effective such that the Holder may freely sell its shares of Warrant Stock upon exercise
hereof, this Warrant may be exercisable in whole or in part for cash only as set forth in Section 1 above. If no such Registration Statement is available, then payment upon exercise may be made at the option of the Holder either (i) in cash, wire
transfer or by certified or official bank check payable to the order of the Company equal to the applicable aggregate Purchase Price, (ii) by delivery of Warrant Stock issuable upon exercise of the Warrants in accordance with Section 3(b) below
("Cashless Exercise") or (iii) by a combination of any of the foregoing methods, for the number of Warrant Stock specified in such form (as such exercise number shall be adjusted to reflect any adjustment in the total number of shares of
Warrant Stock issuable to the Holder per the terms of this Warrant) and the Holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully paid and nonassessable shares of Warrant Stock (or other securities)
determined as provided herein.

	
	 	 	 
		
b. 		
If the Fair Market Value of one share of Warrant Stock is greater than the Purchase Price (at the date of calculation as set forth below) and no Registration Statement relating to the Warrant Stock is effective, in lieu of
exercising this Warrant for cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being cancelled) by surrender of this Warrant at the principal office of the Company together
with the properly endorsed Subscription Form in which event the Company shall issue to the Holder a number of shares of Warrant Stock computed using the following formula:

	
	 	 	 
			
X =[ Y*(A-B)]/A

	
	 	 	 
			
Where

	
			
X= the number of shares of Warrant Stock to be issued to the Holder

	
	 	 	 
			
Y= the number of shares of Warrant Stock purchasable under
the Warrant or, if only a portion of the Warrant is being exercised, the portion
of the Warrant being exercised (at the date of such calculation)

	
	 	 	
 
	 	 	
A= the Fair Market Value of one share of the Company's Warrant Stock (at the date of such calculation)
	
	 	 	
 
	 	 	
B= Purchase Price (as adjusted to the date of such calculation)
	
	
 	
c. 		
For purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Commission currently has interpreted Rule 144 to mean that the Warrant Stock issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Stock shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement.

	

	
4. 		
Reservation of Shares. The Company hereby agrees that at all times there shall be reserved for issuance upon the exercise of this Warrant such number of shares of its Warrant Stock as shall be required for issuance upon
exercise of this Warrant. The Company further agrees that all shares which may be issued upon the exercise of the rights represented by this Warrant will be duly authorized and will, upon issuance and against payment of the exercise price, be
validly issued, fully paid and non-assessable, free from all taxes, liens, charges and preemptive rights with respect to the issuance thereof, other than taxes, if any, in respect of any transfer occurring contemporaneously with such issuance and
other than transfer restrictions imposed by federal and state securities laws.

	
	 	 	 
	
5. 		
Exchange, Transfer or Assignment of Warrant. This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if
any, for other Warrants of different denominations, entitling the Holder or Holders thereof to purchase in the aggregate the same number of shares of Warrant Stock purchasable hereunder. Upon surrender of this Warrant to the Company or at the office
of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee named in such
Instrument of assignment and this Warrant shall promptly be canceled. This Warrant may be divided or combined with other Warrants that carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer
agent, if any, together with a written notice specifying the names and denominations in which new Warrants are to be issued and signed by the Holder hereof.

	
	
 	
 
	
6.	
Certain Adjustments. The Exercise Price and number of Warrant Shares
issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this Section 6.
	
 	
 	
 
	
 	
a. 		
Stock Dividends and Splits. If the Company (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding
shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be
the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this
paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective
immediately after the effective date of such subdivision or combination.

	
	 	 	 
	
 	
b. 		
Fundamental Transactions. If there is a Fundamental Transaction, then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant
(the "Alternative Consideration"). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternative Consideration based on the amount of Alternative Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternative Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternative Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternative Consideration it
receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder's option and request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant
substantially in the form of this Warrant for a term equal to the remainder of the term of this Warrant and consistent with the foregoing provisions and evidencing the Holder's right to purchase the Alternative Consideration for the aggregate
Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (b) and
insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.
"Fundamental Transaction" means (i) the consummation of a transaction
(including, without limitation, any merger or consolidation) the result of which is that any Person or group of Persons acting in concert becomes the owner, directly or indirectly, beneficially or of record, of shares representing more than 50% of
the aggregate ordinary voting power represented by the Company's issued and outstanding capital stock on a fully-diluted basis, (ii) the adoption of a plan relating to the liquidation, dissolution or wind-up of the affairs of the Company, (iii)
a consolidation or merger of the Company with or into any other Person or Persons (except one in which the holders of capital stock of the Company immediately prior to such merger or consolidation continue to hold a majority of the outstanding
equity securities of the surviving, resulting or consolidated entity), or (iv) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions,
of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to any
"person" (as that term is used in Section 12(d) of the Exchange Act) or persons.

	

	
 	
c. 		
Subsequent Equity Sales.

	
	 	 	 	 
	 		
(i) 		
If and whenever on or after the date hereof and through the earlier to occur of (i) eighteen months from the date hereof and (ii) date that there is an effective registration statement on file with the Securities and Exchange
Commission covering the resale of all of the Warrant Stock and all of the shares of Common Stock issued in the Offering, the Company issues or sells any shares of Common Stock or securities convertible into Common Stock for a consideration per share
of Common Stock less than the then current Exercise Price (if the holder of the Common Stock or securities convertible into Common Stock so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating
conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights issued in connection with such issuance, be entitled to receive shares of Common Stock at a price less than the Exercise Price, such issuance shall be deemed
to have occurred for less than the Exercise Price), then, the Exercise Price shall be multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to the issuance of such shares of
Common Stock or securities convertible into Common Stock plus the number of shares of Common Stock which the offering price for such shares of Common Stock or securities convertible into Common Stock would purchase at the Exercise Price, and the
denominator of which shall be the sum of the number of shares of Common Stock outstanding immediately prior to such issuance plus the number of shares of Common Stock so issued or issuable. The Company shall notify the Holder in writing, no later than the third
Trading Day following the issuance of any Common Stock or securities convertible into Common Stock subject to this section, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other
pricing terms.

	

	
 	
 	
(ii) 		
For purposes of this subsection 6(c), the following subsections (c)(ii)(1) to (c)(ii)(6) shall also be applicable:

	
	 	 	 	 	 
	 	 		
1. 		
Issuance of Rights or Options. In case at any time the Company shall in any manner grant (directly and not by assumption in a merger or otherwise) any warrants or other rights to subscribe for or to purchase, or any options
for the purchase of, Common Stock or any stock or security convertible into or exchangeable for Common Stock (such warrants, rights or options being called
"Options" and such convertible or exchangeable stock or securities being called
"Convertible Securities") whether or not such Options or the right to convert or exchange any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon the exercise of such
Options or upon the conversion or exchange of such Convertible Securities (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount, if any, received or receivable by the Company as
consideration for the granting of such Options, plus (y) the aggregate amount of additional consideration payable to the Company upon the exercise of all such Options, plus (z), in the case of such Options which relate to Convertible Securities, the
aggregate amount of additional consideration, if any, payable upon the issue or sale of such Convertible Securities and upon the conversion or exchange thereof, by (ii) the total maximum number of shares of Common Stock issuable upon the exercise of
such Options or upon the conversion or exchange of all such Convertible Securities issuable upon the exercise of such Options) shall be less than the Exercise Price in effect immediately prior to the time of the granting of such Options, then the
total number of shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange of the total amount of such Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued for
such price per share as of the date of granting of such Options or the issuance of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price. Except as otherwise provided in subsection
6(c)(ii)(3), no adjustment of the Exercise Price shall be made upon the actual issue of such Common Stock or of such Convertible Securities upon exercise of such Options or upon the actual issue of such Common Stock upon conversion or exchange of
such Convertible Securities.

	
	 	 	 	 	 
	 	 		
2. 		
Issuance of Convertible Securities. In case the Company shall in any manner issue (directly and not by assumption in a merger or otherwise) or sell any Convertible Securities, whether or not the rights to exchange or
convert any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon such conversion or exchange (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount received or receivable by the Company as consideration for
the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof, by (ii) the total number of shares of Common Stock issuable upon the
conversion or exchange of all such Convertible Securities) shall be less than the Exercise Price in effect immediately prior to the time of such issue or sale, then the total maximum number of shares of Common Stock issuable upon conversion or
exchange of all such Convertible Securities shall be deemed to have been issued for such price per share as of the date of the issue or sale of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting
the Exercise Price, provided that (a) except as otherwise provided in subsection 6(c)(ii)(3), no adjustment of the Exercise Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities
and (b) no further adjustment of the Exercise Price shall be made by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase any such Convertible Securities for which adjustments of the Exercise Price have been
made pursuant to the other provisions of subsection 6(c).

	

	
 	
 	
 	
3. 		
Change in Option Price or Conversion Rate. Upon the happening of any of the following events, namely, if the purchase price provided for in any Option referred to in subsection 6(c)(ii)(1) hereof, the additional
consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in subsections 6(c)(ii)(1) or 6(c)(ii)(2), or the rate at which Convertible Securities referred to in subsections 6(c)(ii)(1) or 6(c)(ii)(2) are
convertible into or exchangeable for Common Stock shall change at any time (including, but not limited to, changes under or by reason of provisions designed to protect against dilution), the Exercise Price in effect at the time of such event shall
forthwith be readjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible Securities still outstanding provided for such changed purchase price, additional consideration or conversion rate, as the
case may be, at the time initially granted, issued or sold. On the termination of any Option for which any adjustment was made pursuant to this subsection 6(c) or any right to convert or exchange Convertible Securities for which any adjustment was
made pursuant to this subsection 6(c) (including without limitation upon the redemption or purchase for consideration of such Convertible Securities by the Company), the Exercise Price then in effect hereunder shall forthwith be changed to the
Exercise Price which would have been in effect at the time of such termination had such Option or Convertible Securities, to the extent outstanding immediately prior to such termination, never been issued.

	
	 	 	 	 	 
	
 	
 	
 	
4. 		
Stock Dividends. Subject to the provisions of this subsection 6(c), in case the Company shall declare a dividend or make any other distribution upon any stock of the Company (other than the Common Stock) payable in Common
Stock, Options or Convertible Securities, then any Common Stock, Options or Convertible Securities, as the case may be, issuable in payment of such dividend or distribution shall be deemed to have been issued or sold without consideration. Notwithstanding the foregoing, if Section 6(a) is applicable to the declaration by the Company of
a stock dividend or other distribution, then Section 6(c) shall not apply to that dividend or other distribution.

	

	 	 		
5. 		
Consideration for Stock. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for cash, the consideration received therefor shall be deemed to be gross amount received by the Company
therefor, before any deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed by the Company in connection therewith. In case any shares of Common Stock, Options or Convertible Securities shall be issued or
sold for a consideration other than cash, the amount of the consideration other than cash received by the Company shall be deemed to be the fair value of such consideration as determined in good faith by the Board of Directors of the Company, before
the deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed by the Company in connection therewith. In case any Options shall be issued in connection with the issue and sale of other securities of the
Company, together comprising one integral transaction in which no specific consideration is allocated to such Options by the parties thereto, such Options shall be deemed to have been issued for such consideration as determined in good faith by the
Board of Directors of the Company. If Common Stock, Options or Convertible Securities shall be issued or sold by the Company and, in connection therewith, other Options or Convertible Securities (the
"Additional Rights") are issued, then
the consideration received or deemed to be received by the Company shall be reduced by the fair market value of the Additional Rights (as determined using a method mutually agreed to by the Company and the Holder). The Board of Directors of the
Company shall respond promptly, in writing, to an inquiry by the Holders as to the fair market value of the Additional Rights. In the event that the Board of Directors of the Company and the Holders are unable to agree upon the fair market value of
the Additional Rights, the Company and the Holders shall jointly select an appraiser, who is experienced in such matters. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne evenly by the
Company and the Holder.

	
	 	 	 	 	 
	 	 		
6. 		
Record Date. In case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (i) to receive a dividend or other distribution payable in Common Stock, Options or Convertible
Securities or (ii) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

	
	 	 	 	 	 
	
 	
 	
(iii) 		
Notwithstanding the foregoing, no adjustment will be made under this paragraph (c) in respect of: (1) the issuance of shares of Common Stock or
options to employees, officers, directors, or consultants of the Company pursuant to any stock or option plan duly adopted for such purpose by a majority of the non-employee members of the Board of Directors of the Company or a majority of the
members of a committee of non-employee directors, (2) securities issued upon the exercise or exchange of or conversion of any securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common
Stock issued and outstanding on the date of this Warrant, provided that such securities have not been amended since the date of this Warrant to increase the number of such securities or to decrease the exercise, exchange or conversion price of such
securities; and (3) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a person which is either an owner of, or
an entity that is, itself or through its subsidiaries, an operating company in a business synergistic with the business of the Company and in which the Company receives benefits in addition to the investment of funds, but shall not include a
transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities. 

	

 

	
 	
d. 		
Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 6, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased
proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

	
	 	 	 
	
 	
e. 		
Calculations. All calculations under this Section 6 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not
include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

	
	 	 	 
	
 	
f. 		
Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 6, the Company at its expense shall promptly compute such adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions
giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company's Transfer Agent.

	
	 	 	 
	
 	
g. 		
Notice of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or
warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the
voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction (but only to the extent such disclosure would not
result in the dissemination of material, non-public information to the Holder) at least 10 calendar days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with
respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such
transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice.

	

	
7. 		
Limitation on Exercises. Notwithstanding anything herein to the contrary, the Holder shall not be entitled to exercise this Warrant on an exercise date nor may the Company exercise its right to give a Call Notice (as
defined in Section 8) in connection with that number of Warrant Stock which would be in excess of the sum of (i) the number of Common Stock beneficially owned by the Holder and its affiliates on an exercise date or Call Date, and (ii) the number of
Warrant Stock issuable upon the exercise of this Warrant with respect to which the determination of this limitation is being made on an exercise date or Call Date, which would result in beneficial ownership by the Holder and its affiliates of more
than 9.99% of the outstanding, Common Stock on such date. For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and
Regulation 13d-3 there under. Subject to the foregoing, the Holder shall not be limited to aggregate exercises which would result in the issuance of more than 9.99%. The restriction described in this paragraph may be revoked upon sixty-one (61) days
prior notice from the Holder to the Company. The Holder may allocate which of the equity of the Company deemed beneficially owned by the Subscriber shall be included in the 9.99% amount described above and which shall be allocated to the excess
above 9.99%.

	
	 	 	 
	
8. 		
Warrant Call Option. The Company shall have the option to
"call" the Warrants (the "Warrant Call"), one or more times, in accordance with and governed by this Section 8. The Company may not exercise the
right to Call this Warrant after the occurrence of a default by the Company of a material term of this Warrant or the Subscription Agreement.

	
	 	 	 
		
a. 		
Call Notice. The Company shall exercise the Warrant Call by giving to the Holder a written notice of call (the
"Call Notice") during the period in which the Warrant Call may be exercised. Unless otherwise agreed
to by the Holder, a Call Notice must be given to all other holders who received warrants in the Offering, in proportion to the amounts of Warrant Stock which may be purchased by the respective holders in accordance with the respective warrants held
by each.

	
	 	 	 
		
b. 		
Call Date. The Company's right to exercise the Warrant Call shall commence thirty trading days after the actual effective date of the Registration Statement covering the Warrant Stock to be issued upon exercise of the
Warrant and end thirty trading days prior to the Expiration Date. The effective date of each Call Notice (the
"Call Date") is the date on which notice is effective under the notice provision of Section 10 of this Warrant. A new Call Notice
may be given no sooner than fifteen trading days after a prior Call Date.

	
	 	 	 
		
c. 		
Lookback Period. A Call Notice may be given by the
Company only within five trading days after the Common Stock has had a closing
price of at least $3.00 and the average daily trading volume exceeds 100,000
shares for fifteen (15) consecutive trading days ("Lookback Period"), as reported by the trading market or quotation system on which the Company's Common Stock is listed, traded or quoted (the
"Principal Market"). The Company shall not
have received a notice from the Principal Market during the ninety calendar days prior to the Call Date, that the Company or the Common Stock does not meet the requirements for continued quotation, listing or trading on such Principal Market. The
Company shall meet the requirements for continued quotation, listing or trading on the Principal Market for the Lookback Period through the Delivery Date.

	

		
d. 		
Timely Exercise and Payment. The Holder shall exercise the Warrant and submit the Exercise Price within fourteen trading days after the Call Date. If the Holder fails to timely pay the amount required by the Warrant Call,
the Company's sole remedy shall be to cancel a corresponding amount of this Warrant.

	
	 	 	 
	
9. 		
Loss, Theft, Destruction or Mutilation. Upon receipt by the Company of evidence satisfactory to it, in the exercise of its reasonable discretion, of the ownership and the loss, theft, destruction or mutilation of this
Warrant and, in the case of loss, theft or destruction, of indemnity reasonably satisfactory to the Company and, in the case of mutilation, upon surrender and cancellation thereof, the Company will execute and deliver in lieu thereof, without
expense to the Holder, a new Warrant of like tenor dated the date hereof.

	
	 	 	 
	
10. 		
Holder Not a Stockholder. Prior to exercise of this Warrant, the Holder hereof shall not, by reason of being a Holder, be entitled to any rights of a stockholder with respect to the Warrant Stock.

	
	 	 	 
	
11. 		
Fees and Expenses. Except as specified in the Subscription Agreement or otherwise herein provided, the Company and Holder shall pay the fees and expenses of its respective advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Warrant.

	
	 	 	 
	
12. 		
Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

	
	 	 	 
	
13. 		
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number specified in this Section prior to 5:30 p.m. (Eastern Time) on a Business Day, (b) the next business day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in this Section on
a day that is not a business day or later than 5:30 p.m. (Eastern Time) on any date and earlier than 11:59 p.m. (Eastern Time) on such date, (c) the business day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be as follows:

	

	
 	
If to the Company:
		
SanJun Industrial Park, HuaWang Road
	
	
 	
 
		
Dalang, Longhua Town
	
	
 	
 
		
Shenzhen, 518109, China
	
	
 	
 
		
Fax: +86-755-2810 9421
	
	
 	
 
		
Attention: Chief Executive Officer
	
	
 	
 
		
 
	
	
 	
with a copy (for
		
Pillsbury Winthrop Shaw Pittman LLP
	
	
 	
informational
		
50 Fremont Street
	
	
 	
purposes only) to:
		
San Francisco, CA 94105-2228
	
	
 	
 
		
Tel: 415.983.1523
	
	
 	
 
		
Fax: 415.983.1200
	
	
 	
 
		
Attention: Scott C. Kline
	
	
 	
 
		
 
	
	
 	
If to the Holder:
		
To the address set forth on such Holder's signature page to the
Subscription Agreement or such other address as may be designated in writing hereafter, in the same manner, by such Person.
	

14. 

Governing Law.  ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF THAT WOULD APPLY ANY OTHER LAW. Each party agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant and any other Transaction Documents may be commenced in the state and federal courts sitting in the
City of New York, Borough of Manhattan (the "New York Courts").  The Company and the Holder hereby irrevocably submits to the non-exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of the any of the Transaction Documents), and hereby irrevocably waive, and agrees not to assert in any proceeding, any claim that it
is not personally subject to the jurisdiction of any such New York Court, or that such proceeding has been commenced in an improper or inconvenient forum.  The Company and the Holder hereby irrevocably waive personal service of process and consents
to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. THE COMPANY AND
THE HOLDER HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT OR
THE TRANSACTIONS CONTEMPLATED HEREBY. 

	
15. 		
Successors and Assigns. This Warrant shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Warrant or any rights or obligations hereunder
without the prior written consent of the Holder. Subject to compliance with applicable securities laws, and the terms and conditions herein, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder hereof with
respect to any or all of the Warrant Stock. On the surrender for exchange of this Warrant, with the transferor's endorsement in the form of Warrant Exhibit C attached hereto (the
"Transferor Endorsement Form") and together with
evidence reasonably satisfactory to the Company demonstrating compliance with applicable Securities Laws, the Company at its expense but with payment by such transferor of any applicable transfer taxes) will issue and deliver to or on the order of
the transferor thereof a new Warrant or a Warrant of like tenor, in the name of the transferor and/or the Transferee(s) specified in such Transferor Endorsement Form, calling in the aggregate on the face or faces thereof for the number of shares of
Warrant Stock called for on the face or faces of the Warrant so surrendered by such transferor.

	
	 	 
	
16. 		
Amendments; Waivers. No provision of this Warrant may be waived or amended except in a written instrument signed by the Company and the holders of a majority of the Warrants issued in connection with the Offering. No waiver
of any default with respect to any provision, condition or requirement of this Warrant shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

	

	
17. 		
Construction. The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Warrant will be deemed
to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. This Warrant shall be construed as if drafted jointly by the parties, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Warrant.

	

[Remainder of Page Left Blank Intentionally]

 

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above. 

DEERFIELD RESOURCES, LTD.

By: ______________________________________

Name: Xiangjun Liu 

Title: Chief Executive Officer

 

 

 

Signature Page to Warrant

WARRANT EXHIBIT A

EXERCISE NOTICE

DEERFIELD RESOURCES, LTD.

WARRANT DATED FEBRUARY 10, 2010

(1) 

The undersigned hereby irrevocably elects to purchase ______________shares of Common Stock of the Company pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any. 

(2) 

The undersigned shall pay the sum of $____________to the Company in accordance with the terms of the Warrant. 

(3) 

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

 

________________________________________________________________________________________________________

The Warrant Stock shall be delivered to the following DWAC Account Number, if permitted, or by physical delivery of a certificate to: 

________________________________________________________________________________________________________

________________________________________________________________________________________________________

(4) 

By its delivery of this Exercise Notice, the undersigned represents and warrants
to the Company that in giving effect to the exercise evidenced hereby the Holder
will not beneficially own in excess of the number of shares of Common Stock
(determined in accordance with Section 13(d) of the Securities Exchange Act of
1934) permitted to be owned under Section 7 of this Warrant to which this notice
relates. 

(5) 

The undersigned represents and warrants that the undersigned is acquiring such
shares for its own account for investment purpose, and not for resale or with a
view to distribution of such shares. 

Dated: _____________, ______

Name of Holder:

(Print) 
____________________________________

By:
____________________________________
 

Name:
____________________________________

Title:
____________________________________

(Signature must conform in all respects to name of

holder as specified on the face of the Warrant) 

WARRANT EXHIBIT B

DEERFIELD RESOURCES, LTD.

Warrant Shares Exercise Log

	
Date
	
	
Number of Warrant
	
	
Number of Warrant Shares
	
	
Number of
	

	
 
	
	
Shares Available to be
	
	
Exercised
	
	
Warrant Shares
	

	
 
	
	
Exercised
	
	
 
	
	
Remaining to be
	

	

	
	

	
	

	
	
Exercised
	

	

 	
		
		
	
	

 	
		
		
	
	

 	
		
		
	
	

 	
		
		
	

WARRANT EXHIBIT C 

DEERFIELD RESOURCES, LTD.

WARRANT ORIGINALLY ISSUED FEBRUARY 10, 2010

WARRANT NO. ___

ASSIGNMENT FORM

(To assign the foregoing warrant, execute 

this form and supply required information. 

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________(the
"Transferee") the right represented by the above-captioned Warrant to purchase ____________shares of Common Stock to which such Warrant relates, and all rights evidenced thereby, and appoints any duly authorized officer or other authorized person of the Company, attorney to transfer said right on the books of the
Company with full power of substitution in the premises. 

Dated: _____________________, ______

______________________________________________________________________
 Holder's Name: 
______________________________________________________________________
 Holder's Signature:

______________________________________________________________________
 Name and Title of Signatory: 
______________________________________________________________________
 Holder's Address:

Signature Guaranteed: 
______________________________________________________________________
 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of
corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant. 

______________________________________________________________________
 Transferee's Name: 
______________________________________________________________________
 Transferee's Address:Deerfield Resources, Ltd.: Exhibit 4.2 - Prepared by TNT Filings Inc.

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of February 10, 2010, among Deerfield Resources, Ltd., a Nevada corporation (the “Company”), and each signatory hereto (each, an
“Investor” and collectively, the “Investors”).

R E C I T A L S

WHEREAS, the Company and the Investors are parties to Subscription Agreements (the “Subscription Agreements”) entered into in connection with a private placement offering (the “Offering”) described
in the Confidential Private Placement Memorandum, dated January 14, 2010 (the “PPM”), as such may be amended and supplemented from time to time; and 

WHEREAS, the Investors’ obligations under the Subscription Agreements are conditioned upon the registration under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to this Agreement,
of the securities issued in connection with the Offering. 

NOW, THEREFORE, in consideration of the promises, covenants and conditions set forth herein, the parties hereto hereby agree as follows: 

1. 

Registration Rights.

1.1 

 Definitions. As used in this Agreement, the following terms shall have the meanings set
forth below:

(a) 

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

(b) 

“Common Stock” means the Company’s common stock, par value $0.001 per share. 

(c)  

“Effectiveness Date” means the date that is one hundred and eighty (180) days
after the Trigger Date.

(d) 

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

	(e) 

“Filing Date” means the date that is ninety (90) days after the Trigger Date.

	(f) 

“Investor” means any person owning Registrable Securities who becomes party
to this Agreement by executing a counterpart signature page hereto, or other agreement in writing to be bound by the terms hereof, which is accepted by the Company. 

(g) 

The terms “register,” “registered” and “registration” refer to a registration effected by preparing and filing a Registration Statement or similar document in
compliance with the Securities Act, and the declaration or ordering of effectiveness of such Registration Statement or document. 

(h) 

“Registration Statement” means any registration statement required to be filed in accordance with this Agreement to register the Registrable Securities including the prospectus,
amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference therein. 

(i) 

“Registrable Securities” means (i) the Shares and (ii) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event, or any exercise
price adjustment with respect to any of the Common Stock underlying the Warrants; provided, however, that Registrable Securities shall not include any securities of the Company that have previously been registered and remain subject to a currently
effective Registration Statement or which have been sold to the public either pursuant to a Registration Statement or Rule 144, or which have been sold in a private transaction in which the transferor’s rights under this Section 1 are not
assigned, or which may be sold immediately without registration under the Securities Act and without volume restrictions pursuant to Rule 144. 

(j) 

“Rule 144” means Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the
Commission. 

(k) 

“Rule 415” means Rule 415 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the
Commission. 

(l) 

“Shares” means the shares of Common Stock issued pursuant to the Subscription Agreements and issuable upon exercise of the Warrants. 

(m) 

“Trigger Date” means the later of the final Closing Date or the Termination Date (as such terms are defined in the Subscription Agreement). 

(n) 

“Warrants” means five-year warrants to purchase Common Stock issued pursuant to the Subscription Agreements and issued to any Placement Agents (as defined in the PPM). 

1.2 

Company Registration.

(a)  

On or prior to the Filing Date the Company shall prepare and file with the
Commission a Registration Statement covering the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415 (such initial Registration Statement, together with any additional Registration Statements to be filed
pursuant to Section 2(b) below, each a “Mandatory Registration Statement”). The Mandatory Registration Statement shall be on Form S-1 and shall contain the “Plan of Distribution” attached hereto as Annex A. The Company
shall cause the Mandatory Registration Statement to become effective and remain effective as provided herein. The Company shall use commercially reasonable efforts to cause the Mandatory Registration Statement to be declared effective under the
Securities Act as soon as possible and, in any event, by no later than the Effectiveness Date. The Company shall use commercially reasonable efforts to keep the Mandatory Registration Statement continuously effective under the Securities Act until
all Registrable Securities covered by such Mandatory Registration Statement have been sold, or may be sold without the requirement to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, as
determined by the counsel to the Company (the “Effectiveness Period”). 

(b) 

The Company shall pay to Investors a fee of 1% per month of the Investors’ investment, payable in cash, for every thirty (30) day period up to a maximum of 6%, (i)
following the Filing Date that the Mandatory Registration Statement has not been filed and (ii) following the Effectiveness Date that the Mandatory Registration Statement has not been declared effective; provided, however, that the Company shall not
be obligated to pay any such liquidated damages if the Company is unable to fulfill its registration obligations as a result of rules, regulations, positions or releases issued or actions taken by the Commission pursuant to its authority with
respect to “Rule 415,” and the Company registers at such time the maximum number of shares of Common Stock permissible upon consultation with the staff of the Commission; provided, further, that the Company shall not be obligated to pay
any liquidated damages for its failure to file a Mandatory Registration Statement on or before the Filing Date at any time following the one year anniversary of the final Closing Date. 

(c) 

If at any time during the Effectiveness Period, the number of Registrable Securities at any time exceeds the number of shares of Common Stock then registered in a Mandatory Registration Statement, the Company shall
file as soon as reasonably practicable an additional Registration Statement covering the resale by the Investors of not less than 30% of the number of such Registrable Securities. 

(d) 

The Company shall bear and pay all expenses incurred in connection with any registration, filing or qualification of Registrable Securities with respect to the registrations pursuant to this Section 1.2 for each
Investor, including (without limitation) all registration, filing and qualification fees, printer’s fees, accounting fees and fees and disbursements of counsel for the Company, but excluding any brokerage or underwriting fees, discounts and
commissions relating to the Registrable Securities, or fees and disbursements of counsel for the Investors. 

(e)

If at any time during the Effectiveness Period there is not an effective Mandatory Registration Statement covering all of the Registrable Securities, then the Company shall notify each Investor in writing at least
ten (10) days prior to the filing of any registration statement under the Securities Act, in connection with a public offering of shares of Common Stock (including, but not limited to, registration statements relating to secondary offerings of
securities of the Company but excluding any registration statements (i) on Form S-4 or S-8 (or any successor or substantially similar form), or of any employee stock option, stock purchase or compensation plan or of securities issued or issuable
pursuant to any such plan, or a dividend reinvestment plan, (ii) otherwise relating to any employee, benefit plan or corporate reorganization or other transactions covered by Rule 145 promulgated under the Securities Act, or (iii) on any
registration form which does not permit secondary sales or does not include substantially the same information as would be required to be included in a registration statement covering the resale of the Registrable Securities) and will afford each
Investor an opportunity to include in such registration statement (each a “Piggyback Registration Statement”) all or part of the Registrable Securities held by such Investor. In the event an Investor desires to include in any such
Piggyback Registration Statement all or any part of the Registrable Securities held by such Investor, the Investor shall within five (5) days after the delivery of the above-described notice from the Company, so notify the Company in writing,
including the number of such Registrable Securities such Investor wishes to include in such Piggyback Registration Statement. If an Investor decides not to include all of its Registrable Securities in any Registration Statement thereafter filed by
the Company such Investor shall nevertheless continue to have the right to include any Registrable Securities in any subsequent Registration Statement or Registration Statements as may be filed by the Company with respect to the offering of the
securities, all upon the terms and conditions set forth herein. 

(f) 

The right of any such Investor’s Registrable Securities to be included in any Piggyback Registration Statement pursuant to Section 1(e) above in connection with an
underwritten offering, shall be conditioned upon such Investor’s participation in such underwritten offering and the inclusion of such Investor’s Registrable Securities in the underwritten offering to the extent provided herein. All
Investors proposing to distribute their Registrable Securities through such underwritten offering shall enter into an underwriting agreement in customary form with the managing underwriters selected by the Company for such underwriting and complete
and execute any questionnaires, powers of attorney, indemnities, securities escrow agreements, custody agreements, lock-up agreements, and other documents reasonably required under the terms of such underwriting, and furnish to the Company such
information in writing as the Company may reasonably request for inclusion in the Piggyback Registration Statement. Notwithstanding any other provision of this Agreement, if at any time in connection with an underwritten offering, the managing
underwriters determine in good faith that marketing factors require a limitation on the number of shares to be included in a Piggyback Registration Statement pursuant to Section 1(e) above, then the managing underwriters may exclude shares
(including Registrable Securities) from the Piggyback Registration Statement and the underwritten offering, and any Shares included in the Piggyback Registration Statement and the underwritten offering shall be allocated, first, to the Company, and
second, to each of the Investors requesting inclusion of their Registrable Securities in such Piggyback Registration Statement on a pro rata basis based on the total number of Registrable Securities then held by each such Investor that is requesting
inclusion. If any Investor disapproves of the terms of any such underwritten offering that is undertaken in compliance with the terms hereof, such Investor may elect to withdraw therefrom by providing written notice to the Company and the
underwriter, delivered at least ten trading days prior to the effective date of the Piggyback Registration Statement. Any Registrable Securities excluded or withdrawn from such underwritten offering shall be excluded and withdrawn from the Piggyback
Registration Statement. By electing to include Registrable Securities in the Piggyback Registration Statement, if any, the Investor shall be deemed to have agreed not to effect any sale or distribution of securities of the Company of the same or
similar class or classes of the securities included in the Registration Statement or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during such
periods as reasonably requested by the managing underwriter (but in no event for a period longer than 60 days following the effective date of the Piggyback Registration Statement). 

1.3 

Obligations of the Company.  Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 

(a) 

Prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use commercially reasonable efforts to cause such Registration Statement to become effective and to keep
such Registration Statement effective during the Effectiveness Period; 

(b) 

Prepare and file with the Commission such amendments and supplements to such
Registration Statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration Statement; 

(c)

Furnish to the Investors such numbers of copies of the prospectus that is part of such Registration Statement (the “Prospectus”), including any preliminary Prospectus, in conformity with the requirements
of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them (provided that the Company would not be required to print such Prospectuses if readily
available
to Investors from any electronic service, such as on the EDGAR filing database maintained at
www.sec.gov);

(d) 

Use commercially reasonable efforts to register and qualify the securities covered
by such Registration Statement under such other securities’ or blue sky laws of such jurisdictions as shall be reasonably requested by the Investors; provided that the Company shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions; 

(e) 

In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering (each Investor
participating in such underwriting shall also enter into and perform its obligations under such an agreement); 

(f) 

Promptly notify each Investor holding Registrable Securities covered by such Registration Statement at any time when a Prospectus relating thereto is required to be delivered under the Securities Act, within one
business day, (i) of the effectiveness of such Registration Statement, or (ii) of the happening of any event as a result of which the Prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; 

(g)  

Cause all such Registrable Securities registered pursuant hereto to be listed on each securities exchange or nationally recognized quotation system on which similar securities issued by the Company are then listed;
and

(h) 

Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such
registration. 

1.4 

Furnish Information. It shall be a condition precedent to the Company’s obligations to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Investor, that
such Investor shall furnish to the Company such information regarding such Investor, the Registrable Securities held by such Investor, and the intended method of disposition of such securities, in the form attached to this Agreement as Annex B, or
as otherwise reasonably required by the Company or the managing underwriters, if any, to effect the registration of such Investor’s Registrable Securities. 

1.5 

Delay of Registration. No Investor shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect
to the interpretation or implementation of this Section 1. 

1.6 

Indemnification.

(a)  

To the extent permitted by law, the Company will indemnify and hold harmless each
Investor, any underwriter (as defined in the Securities Act) for such Investor and each person, if any, who controls such Investor or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or
liabilities (joint or several) to which any of the foregoing persons may become subject under the Securities Act, the Exchange Act or other federal or state securities law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively, a “Violation”): (i) any untrue statement or alleged untrue statement of a
material fact contained in a Registration Statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto (collectively, the “Filings”), (ii) the omission or alleged omission
to state in the Filings a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the Company will pay any legal or other expenses reasonably incurred by any person to be indemnified pursuant to this
Section 1.6(a) in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 1.6(a) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage,
liability or action to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Investor,
underwriter or controlling person; and provided further that, in no event shall any indemnity under this subsection 1.6(a) exceed the investment amount received by the Company from such Investor in the Offering. 

(b) 

To the extent permitted by law, each Investor will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the Registration Statement, each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act, any underwriter, any other Investor selling securities in such Registration Statement and any controlling person of any such underwriter or other Investor, against any losses,
claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject under the Securities Act, the Exchange Act or other federal or state securities law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Investor
expressly for use in connection with such registration; and each such Investor will pay any legal or other expenses reasonably incurred by any person to be indemnified pursuant to this Section 1.6(b) in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 1.6(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Investor (which consent shall not be unreasonably withheld); provided, however, in no event shall any indemnity under this subsection 1.6(b) exceed the net proceeds received by such Investor upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

(c) 

Promptly after receipt by an indemnified party under this Section 1.6 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to
be made against any indemnifying party under this Section 1.6, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties
that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such
proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section 1.6, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.6. 

(d) 

If the indemnification provided for in Sections 1.6(a) and (b) is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage or expense referred to
herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such loss, liability,
claim or expense as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. In no event shall any Investor be required to contribute an amount in excess of the net proceeds received by such Investor upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

(e) 

The obligations of the Company and Investors under this Section 1.6 shall survive the completion of any offering of Registrable Securities in a Registration Statement under this Section 1, and otherwise. 

1.7 

Reports Under Securities Exchange Act. With a view to making available the benefits of certain rules and regulations of the Commission, including Rule 144, that may at any time permit an Investor to sell
securities of the Company to the public without registration or pursuant to a registration on Form S-1, the Company agrees to:

(a) 

make and keep public information available, as those terms are understood and
defined in Rule 144, at all times after one hundred and eighty (180) days after
the Trigger Date; 

(b) 

take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the Investors to utilize Form S-1 for the sale of their Registrable
Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the Registration Statement is declared effective;

(c) 

file with the Commission in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act; and

(d) 

furnish to any Investor, so long as the Investor owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144 (at
any time after ninety (90) calendar days after the Trigger Date), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold
pursuant to Form S-1 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably
requested in availing any Investor of any rule or
regulation of the Commission that permits the selling of any such securities without registration or pursuant to such form.

1.8 

Transfer or Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be transferred or assigned, but only with all related
obligations, by an Investor to a transferee or assignee who (a) acquires at least twenty (20%) of the Units issued in the Offering (subject to appropriate adjustment for stock splits, stock dividends and combinations) from such transferring
Investor, unless waived in writing by the Company, or (b) holds Registrable Securities immediately prior to such transfer or assignment; provided, that in the case of (a), (i) prior to such transfer or assignment, the Company is furnished
with written notice stating the name and address of such transferee or assignee and identifying the securities with respect to which such registration rights are being transferred or assigned, (ii) such transferee or assignee agrees in writing to be
bound by and subject to the terms and conditions of this Agreement and (iii) such transfer or assignment shall be effective only if immediately following such transfer or assignment the further disposition of such securities by the transferee or
assignee is restricted under the Securities Act. 

2.

Legend.

(a) 

Each certificate representing Shares of Common Stock held by the Investors shall
be endorsed with the following legend: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THIS CERTIFICATE THAT AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT IS AVAILABLE WITH RESPECT TO
SUCH TRANSFER. ANY SUCH TRANSFER MAY ALSO BE SUBJECT TO COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.” 

(b) 

The legend set forth above shall be removed, and the Company shall issue a certificate without such legend to the transferee of the Shares represented thereby, if, unless otherwise required by state securities laws,
(i) such Shares have been sold under an effective Registration Statement under the Securities Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, reasonably acceptable to
the Company, to the effect that such sale, assignment or transfer is being made pursuant to an exemption from the registration requirements of the Securities Act, or (iii) such holder provides the Company with reasonable assurance that the Shares
are being sold, assigned or transferred pursuant to Rule 144 or Rule 144A under the Securities Act. 

3. 

Miscellaneous.

3.1 

 Governing Law. The parties hereby agree that any dispute which may arise between them
arising out of or in connection with this Agreement shall be adjudicated only before a federal court located in the State of New York and they hereby submit to the exclusive jurisdiction of the federal and state courts of the State of New York with
respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court
is an inconvenient forum, relating to or arising out of this Agreement or any acts or omissions relating to the registration of the securities hereunder, and consent to the service of process in any such action or legal proceeding by
means of registered or certified mail, return receipt requested, in care of the address set forth below or such other address as the undersigned shall furnish in writing to the other.

3.2 

Waivers and Amendments.  This Agreement may be terminated and any term of this Agreement may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) with
the written consent of the Company and Investors holding at least a majority of the Registrable Securities then outstanding (the “Majority Investors”). Notwithstanding the foregoing, additional parties may be added as Investors under this
Agreement, and the definition of Registrable Securities expanded, with the written consent of the Company and the Majority Investors. No such amendment or waiver shall reduce the aforesaid percentage of the Registrable Securities, the holders of
which are required to consent to any termination, amendment or waiver without the consent of the record holders of all of the Registrable Securities. Any termination, amendment or waiver effected in accordance with this Section 3.2 shall be binding
upon each holder of Registrable Securities then outstanding, each future holder of all such Registrable Securities and the Company.

3.3 

Successors and Assigns. Except as otherwise expressly provided for herein, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and
administrators of the parties hereto.

3.4 

Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among the parties with regard to the subject matter hereof, and no party shall be liable or bound to any other
party in any manner by any warranties, representations or covenants except as specifically set forth herein. 

3.5 

Notices. All notices and other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section prior to 5:30 p.m. (Eastern Time) on a Business Day, (b) the next business day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a business day or later than 5:30 p.m. (Eastern Time) on any date and earlier than 11:59 p.m. (Eastern Time) on such date, (c) the
business day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall
be as follows: 

	
If to the Company:
		
SanJun Industrial Park, HuaWang Road
	
	
 
		
Dalang, Longhua Town
	
	
 
		
Shenzhen, 518109, China
	
	
 
		
Fax: +86-755-2810 9421
	
	
 
		
Attention: Chief Executive Officer
	
	
 
		
 
	
	
with a copy (for
		
Pillsbury Winthrop Shaw Pittman LLP
	
	
informational
		
50 Fremont Street
	
	
purposes only) to:
		
San Francisco, CA 94105-2228
	
	
 
		
Tel: 415.983.1523
	
	
 
		
Fax: 415.983.1200
	
	
 
		
Attention: Scott C. Kline
	
	
 
		
 
	
	
If to the Investor:
		
To the address set forth on such Investor’s signature page to the
	
	
 
		
Subscription Agreement
	

or such other address as may be designated in writing hereafter, in the same manner, by such Person. 

3.6 

Interpretation. The words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation.” The
titles and subtitles used in this Agreement are used for convenience only and are not considered in construing or interpreting this Agreement. 

3.7 

Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement, and the balance of the Agreement shall be
interpreted as if such provision were so excluded, and shall be enforceable in accordance with its terms. 

3.8 

Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor hereunder are several and not joint with the obligations of any other Investor hereunder, and no Investor shall
be responsible in any way for the performance of the obligations of any other Investor hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Investor pursuant hereto or
thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert with respect to such obligations or the
transactions contemplated by this Agreement. Each Investor shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined
as an additional party in any proceeding for such purpose. 

3.9 

Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

3.10 

Telecopy Execution and Delivery. A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more parties hereto, and an executed copy of this Agreement may be delivered by one or
more parties hereto by facsimile or similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes.
At the request of any party hereto, all parties hereto agree to execute an original of this Agreement as well as any facsimile, telecopy or other reproduction hereof. 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, as of the date, month and year first set forth above. 

COMPANY:

DEERFIELD RESOURCES, LTD.

By: _______________________________

Name: Xiangjun Liu 

Title: Chief Executive Officer

 

 

 

[COMPANY SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

IN WITNESS WHEREOF, the undersigned Investor has executed this Agreement as of the date, month and year that such Investor became the owner of Registrable Securities. 

INVESTOR:

___________________________________

By: ________________________________

Name 

Title:

Address: 

___________________________________

Telephone:
___________________________________
 

Facsimile:
___________________________________

Email:
___________________________________

 

[INVESTOR COUNTERPART SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT] 

 

 

 

 

Annex A

Plan of Distribution

Each selling stockholder of the common stock and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock on the trading market or quotation system on which the
Company’s Common Stock is listed, traded or quoted (the “Principal Market”) or in private transactions. These sales may be at fixed or negotiated prices. A selling stockholder may use any one or more of the following methods when
selling shares: 

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

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

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

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

	
privately negotiated transactions;

	
settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part:

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

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

	
a combination of any such methods of sale; or

	
any other method permitted pursuant to applicable law.

The selling stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under this prospectus. 

Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule
2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440. 

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

The selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters” within the meaning of the Securities Act of 1933, as amended, in connection with such sales. In such
event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act of 1933, as amended. Each selling
stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock. In no event shall any broker-dealer receive fees, commissions and markups
which, in the aggregate, would exceed six and one-half percent (6.5%) .

We are required to pay certain fees and expenses incurred by us incident to the registration of the shares. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the
Securities Act of 1933, as amended. 

Because selling stockholders may be deemed to be “underwriters” within the meaning of the Securities Act of 1933, as amended, they will be subject to the prospectus delivery requirements of the Securities Act of 1933, as amended, including
Rule 172 thereunder. In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act of 1933, as amended may be sold under Rule 144 rather than under this prospectus. There is no
underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the selling stockholders. 

We agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the selling stockholders without registration and without the requirement to be in compliance with Rule 144(c)(1) and otherwise
without restriction or limitation pursuant to Rule 144 or (ii) all of the shares have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale shares will be sold only through
registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an
exemption from the registration or qualification requirement is available and is complied with. 

Under applicable rules and regulations under the Securities Exchange Act of 1934, as amended, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the common stock for
the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the
selling stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act of 1933, as amended).

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