<SUBMISSION>
<ACCESSION-NUMBER>0001214782-07-000261
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20071119
<ITEMS>1.01
<ITEMS>3.02
<FILING-DATE>20071121
<DATE-OF-FILING-DATE-CHANGE>20071121
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>DEER VALLEY CORP
<CIK>0000095047
<ASSIGNED-SIC>2451
<IRS-NUMBER>205256635
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-05388
<FILM-NUMBER>071261782
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>4218  W. LINEBAUGH AVE.
<CITY>TAMPA
<STATE>FL
<ZIP>33624
<PHONE>813-885-5998
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>4218  W. LINEBAUGH AVE.
<CITY>TAMPA
<STATE>FL
<ZIP>33624
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CYTATION CORP
<DATE-CHANGED>20010626
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>COLLEGELINK COM INCORP
<DATE-CHANGED>19991122
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<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CYTATION COM INC
<DATE-CHANGED>19990318
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</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>deervalley8k111907.htm
<DESCRIPTION>DEER VALLEY CORPORATION FORM 8-K NOVEMBER 19, 2007
<TEXT>
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      STATES</strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      D.C.&#160;&#160;20549</strong></font></div>
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      8-K</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Current
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    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Pursuant
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      the
      appropriate box below of the Form 8-K if the filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any of
      the
      following provisions (see General instruction A.2. below):</font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      <div id="HDR">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Unless
      otherwise indicated or the
      context otherwise requires, all references below in this Current Report on
      Form
      8-K to &#8220;we,&#8221; &#8220;us,&#8221; &#8220;Deer Valley&#8221; and the &#8220;Company&#8221; are to Deer Valley
      Corporation, a Florida corporation, together with its wholly-owned subsidiary,
      Deer Valley Homebuilders, Inc., an Alabama corporation.&#160;&#160;Specific
      discussions or comments relating to Deer Valley Corporation will reference
      the
&#8220;Deer Valley Corporation,&#8221; and&#160;&#160;those relating to Deer Valley
      Homebuilders, Inc. will be referred to as &#8220;DVH.&#8221;</font></div>
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      1.01&#160;&#160;&#160;Entry into a Material Definitive
      Agreement</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>On
      November 19, 2007, the Company
      entered into an amendment to the Earnout Agreement dated January 18, 2006,
      with
      the original founders (the &#8220;Founders&#8221;), now the core operating management for
      the Company&#8217;s wholly owned subsidiary, Deer Valley Homebuilders, Inc. (the
&#8220;Earnout Amendment&#8221;).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 45.8pt;"></font>In
      exchange for the elimination of
      future performance based cash accruals that were expected to total an additional
      $2 million over the next 12 to 36 months, the Company will issue to the Founders
      two million shares of Deer Valley&#8217;s common stock. In addition, accrued
      liabilities, expected to have totaled approximately $2.75 million by December
      31, 2007, will be paid to the Founders just prior to year end.&#160;&#160;The
      common stock will be held in escrow for a period of approximately three and
      one
      half years. The final number of shares released to recipients may be reduced
      in
      accordance with vesting requirements if the original earnout criteria is not
      met.&#160;&#160;For those shares that are ultimately released, if the open
      market price of the shares at the time of the release should be less than
      $1.00/share, the Company has agreed to either issue additional shares or pay
      a
      cash amount equal to the difference between $1.00 and the share
      price.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item
      3.02&#160;&#160;&#160;Unregistered Sales of Equity
      Securities</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>See
      Item 1.01 above for description of
      unregistered securities issued by the Company and placed in escrow by the
      Founders.&#160;&#160;The issuance of such common stock was effected in reliance
      on the exemptions for sales of securities not involving a public offering,
      as
      set forth in Rule 506 promulgated under the Securities Act, as amended, and
      in
      Section&#160;4(2) of the Securities Act, as amended.</font></div>
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          <tr>
            <td align="left" valign="top" width="9%">
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                No.</strong></font></div>
            </td>
            <td align="left" valign="top" width="91%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Description</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="91%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">10.1</font></div>
            </td>
            <td align="justify" valign="top" width="91%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">First
                Amendment to Earnout Agreement dated November 19, 2007</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="91%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">10.2</font></div>
            </td>
            <td align="justify" valign="top" width="91%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agreement dated November 19, 2007</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="91%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">99.1</font></div>
            </td>
            <td align="justify" valign="top" width="91%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Press
                release titled &#8220;Deer Valley Corporation Modifies Earn-Out Agreement To
                Reduce Accrued Liabilities and To More Tightly Align Management Incentives
                With Increasing Share Value&#8221;</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SIGNATURE</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Pursuant
      to the requirements of the
      Securities Exchange Act of 1934, the Registrant has duly caused this report
      to
      be signed on its behalf by the undersigned hereunto duly
      authorized.</font></div>
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            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">DEER
                VALLEY CORPORATION</font></div>
            </td>
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            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
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            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">By:&#160;<u>/<em>s/
                Charlie Masters</em></u></font></div>
            </td>
          </tr>
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            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Name:&#160;&#160;<u>Charles
                G. Masters</u></font></div>
            </td>
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            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Title:&#160;&#160;<u>President,
                Chief Executive Officer</u></font></div>
            </td>
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            <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Dated:&#160;&#160;<u>November
                21, 2007</u></font></div>
            </td>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10-1.htm
<DESCRIPTION>FIRST AMENDMENT TO EARNOUT AGREEMENT
<TEXT>
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    <title>ex10-1.htm</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Exhibit
      10.1</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>FIRST
      AMENDMENT TO EARNOUT AGREEMENT</u></strong></font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>This
      First Amendment dated November 19,
      2007 (the &#8220;<u>Amendment</u>&#8221;), amends the Earnout Agreement dated as of January
      18, 2006, by and between Joel Stephen Logan, II, Charles L. Murphree, Jr.,
      John
      Steven Lawler, James David Shaw, William Joseph Aycock, Jr., Jerry Ray Cooper,
      Jr., Timothy Wayne Gann, and Jimmy Ray Hawkins (individually, a "<u>Seller</u>"
      and collectively, the &#8220;<u>Sellers</u>&#8221;), Deer Valley Homebuilders, Inc., an
      Alabama corporation ("<u>DVHB</u>"), and Deer Valley Corporation, a Florida
      corporation (&#8220;<u>Deer Valley</u>&#8221;), as successor to DeerValley Acquisitions
      Corp., a Florida corporation (the &#8220;<u>Earnout Agreement</u>&#8221;).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">RECITALS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Pursuant to the Common Stock Purchase Agreement dated November 1, 2005 (the
      "<u>Purchase Agreement</u>"), Sellers sold 100% of the issued and outstanding
      capital stock of DVHB to Deer Valley.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
      Purchase Agreement provided that a portion of the Purchase Price (as defined
      in
      the Purchase Agreement) was to be calculated and paid as an earnout based upon
      the net income before taxes of DVHB.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>C.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Pursuant
      to the Earnout Agreement, the Sellers earned for the fourth quarter of 2005
      and
      for the twelve month period ending December 31, 2006 an aggregate Annual Price
      Adjustment of $2,464,550, of which $1,232,275 was distributed to the Sellers
      in
      accordance with the terms of the Earnout Agreement, and $1,232,275 was recorded
      as a liability to the PATA and remains undistributed to the Sellers (the
&#8220;<u>2006 Undistributed PATA Accrual</u>&#8221;).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>D.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Pursuant
      to the Earnout Agreement, Sellers, DVHB, and Parent Company anticipate that
      the
      Annual Price Adjustment for the Earnout Year ending December 31, 2007 will
      equal
      approximately $1,535,450 (the &#8220;<u>2007 Estimated PATA Accrual</u>&#8221;), of which
      $767,725 will be available for distribution to the Sellers pursuant to the
      terms
      of the Earnout Agreement, and $767,725 will be recorded as an additional
      liability, increasing the PATA, and will remain undistributed to the
      Sellers.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>E.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Sellers,
      DVHB, and Deer Valley wish to amend the Earnout Agreement to, among other
      matters, (a) provide for early release of $2,767,725, comprised of the 2006
      Undistributed PATA Accrual and the 2007 Estimated PATA Accrual, in exchange
      for
      (b) the Sellers agreeing to accept, in lieu of cash, common stock of Deer Valley
      (&#8220;<u>Common Stock</u>&#8221;) for any remaining Annual Price Adjustments accrued after
      the Earnout Year ending December 31, 2007, subject to the price guarantee
      described in Section 1.5 below and restrictions provided for in Sections 1.3,
      1.4 and 1.6 below.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>F.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All
      capitalized terms not otherwise defined herein have the meaning ascribed to
      them
      in the Earnout Agreement.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>NOW,
      THEREFORE, in consideration of the
      premises and of the respective covenants and provisions herein contained, each
      Seller, DVHB, and Deer Valley agree as follows:</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<strong><u>Restated
      Article I</u></strong>.&#160;&#160;Article I of the Earnout Agreement is hereby
      deleted in its entirety and replaced with the following:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      I.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>PRICE
      ADJUSTMENT</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Release
      of Deferred Earnout Payments</u>.&#160;&#160;No later than December 31, 2007,
      Deer Valley shall make a $2,767,725 cash payment to the Sellers, comprised
      of
      the 2007 Estimated PATA Accrual and the 2006 Undistributed PATA
      Accrual.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;S<u>hares
      Deposits</u>.&#160;&#160;No later than December 10, 2007, Deer Valley shall
      issue to the Sellers, for deposit into escrow with Bush Ross, P.A. (the
&#8220;<u>Escrow Agent</u>&#8221;), 2,000,000 shares of Common Stock to be held and released
      pursuant to Sections 1.4 and 1.6 below (the &#8220;<u>Escrowed
      Shares</u>&#8221;).&#160;&#160;Contemporaneous with entering into this Amendment, the
      parties shall enter into an Escrow Agreement with the Escrow
      Agent.&#160;&#160;Prior to vesting pursuant to Section 1.3 below, the Escrowed
      Shares may be voted by a majority of the Board of
      Directors.&#160;&#160;Once&#160;&#160;Escrowed Shares vest, the Sellers may vote
      such Vested Shares.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Annual
      Price Adjustment</u>.&#160;&#160;For each Earnout Year ending after December 31,
      2007, the Sellers shall be entitled to a price adjustment in an amount equal
      to:
      (<u>a</u>) the Net Income Before Taxes of DVHB for such Earnout Year minus
      $1,000,000; <em><u>multiplied by</u></em>&#160;&#160;(<u>b</u>) fifty (50%)
      percent (the &#8220;<u>Annual Price Adjustment</u>&#8221;).&#160;&#160;The Annual Price
      Adjustment shall be determined annually on or before the earlier of: (<u>y</u>)
      twenty days (20) after the completion of the audit of Deer Valley&#8217;s financial
      statements for such Earnout Year; or (<u>z</u>) ninety days following the end of
      such Earnout Year.&#160;&#160;The Sellers shall vest in that number of Escrowed
      Shares equal to the Annual Price Adjustment, divided by $1 (the &#8220;<u>Vested
      Shares</u>&#8221;).&#160;&#160;For example, if the Net Income Before Taxes for a
      particular Earnout Year after 2007 is $3,000,000, then the Annual Price
      Adjustment for such Earnout Year will be $1,000,000, and the number of Escrowed
      Shares that will vest for such Earnout Year will be 1,000,000 shares of Common
      Stock.&#160;&#160;Prior to the Distribution Date (as defined below), all Vested
      Shares will continue to be subject to forfeiture provisions in Section 1.6
      below.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Release
      and Payments on the Distribution Date</u>.&#160;&#160;Within forty-five (45)
      days after the earlier of: (<u>a</u>) the determination of the Annual Price
      Adjustment for the 2013 fiscal year; or (<u>b</u>) the date that both (<u>i</u>)
      cumulative Annual Price Adjustments after 2007 equal $2,000,000 and (<u>ii</u>)
      the five (5) year term of each Employment Agreement has expired (the
&#8220;<u>Distribution Date</u>&#8221;), DVHB shall release to each Seller an amount equal
      to the Vested Shares <em><u>multiplied by</u></em> the percentage (%) set forth
      next to such Seller&#8217;s name on <u>Exhibit &#8220;A&#8221;</u> attached hereto, as may be
      amended from time to time.&#160;&#160;Any Escrowed Shares which have not vested
      by the Distribution Date shall be returned to Deer Valley for
      cancellation.&#160;&#160;In no event shall cumulative Annual Price Adjustments
      accrued after 2007 exceed $2,000,000.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Price
      Guarantee</u>. If the Trading Price (as defined below) on the Distribution Date
      is less than $1.00, then Deer Valley shall be obligated to pay to the Sellers
      an
      amount equal to $1.00 <em>minus</em> the Trading Price, <em>multiplied by</em>
      the number of Vested Shares (the &#8220;<u>Price Guarantee
      Payment</u>&#8221;).&#160;&#160;The Price Guarantee Payment may be paid in cash or
      with shares of Common Stock, at Deer Valley&#8217;s option.&#160;&#160;For example, if
      the Trading Price on the Distribution Date is $0.75, and there are 1,500,000
      Vested Shares, then the Price Guarantee Payment would equal $375,000, which
      may
      be satisfied by the Company by issuing 500,000 shares of Common Stock or making
      a cash payment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Forfeiture</u>.
      If, before the Distribution Date, (<u>a</u>) Deer Valley or DVHB terminates a
      Seller&#8217;s employment for Cause (as defined in each Employment Agreement),
      (<u>b</u>) a Seller terminates his employment with DVHB prior to the five (5)
      year term of each Employment Agreement, or (<u>c</u>) a Seller breaches the
      terms of a Non-Competition Agreement (in each case, a &#8220;<u>Forfeiture
      Event</u>&#8221;), then, upon written notice by Deer Valley or DVHB to such Seller,
      such Seller (a &#8220;<u>Forfeiting Seller</u>&#8221;) shall have forfeited his interest in
      the Escrowed Shares and related Price Guarantee Payment, if any (the
&#8220;<u>Forfeited PATA Interest</u>&#8221;). Upon a Forfeiture Event, (<u>y</u>) fifty
      (50%) percent of the Forfeited PATA Interest shall be immediately released
      from
      the Price Adjustment Target Account to Deer Valley, and (<u>z</u>) the remaining
      fifty (50%) percent of the Forfeited PATA Interest (including the Price
      Guarantee Payment, if any) shall be allocated to the remaining Seller&#8217;s pro-rata
      according to <u>Exhibit &#8220;A&#8221;</u>, as amended, and distributed accordingly on the
      Distribution Date.&#160;&#160;Upon a Forfeiture Event, <u>Exhibit &#8220;A&#8221;</u> shall
      be deemed amended to reflect that the Forfeiting Seller&#8217;s interest has been
      allocated to the remaining Sellers, as follows: each remaining Seller&#8217;s
      percentage interest shall equal (i) the number of shares stated next to such
      Seller&#8217;s name on Exhibit &#8220;A,&#8221; <em><u>divided by</u></em> (ii) the total number
      of shares held by all Sellers less the shares held by the Forfeiting
      Seller.&#160;&#160;Notwithstanding anything to the contrary, a Forfeiture Event
      shall not affect any cash distributions made prior to the date of the Forfeiture
      Event.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<strong><u>Additional
      Definition</u></strong>.&#160;&#160;The following definition is added to Section
      4.1 of the Earnout Agreement:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#8220;<u>Trading
      Price</u>&#8221; for a particular date (the &#8220;<u>Determination Date</u>&#8221;) shall mean
      the price determined by the first of the following clauses that applies: (a)
      if
      shares of Common Stock are traded on a national securities exchange (an
&#8220;Exchange&#8221;), the weighted average of the closing sale price of a share of the
      Common Stock of the Company on the last five (5) trading days prior to the
      Determination Date reported on such Exchange as reported in The Wall Street
      Journal (weighted with respect to the trading volume with respect to each such
      day); (b) if shares of Common Stock are not traded on an Exchange but trade
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      reported on NASDAQ as reported in The Wall Street Journal (weighted with respect
      to the trading volume with respect to each such day); (c) if such shares are
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      issue for which last sale prices are not reported on NASDAQ, the average of
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      relevant price or quotation did not exist on any of such days, the relevant
      price or quotation on the next preceding Business Day on which there was such
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      price or quotation on the next preceding business day on which there was such
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              <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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            <tr>
              <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                  Charles L. Murphree, Jr.</u></font></div>
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                  John Steven Lawler</u></font></div>
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              <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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              <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex10-2.htm
<DESCRIPTION>ESCROW AGREEMENT
<TEXT>
<html>

  <head>
    <title>ex10-2.htm</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Exhibit
      10.2</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>ESCROW
      AGREEMENT</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>This
      Escrow Agreement, dated as of
      November 19, 2007, among Joel Stephen Logan II, an individual
      (&#8220;<strong>Logan</strong>&#8221;)<strong>; </strong>Charles L. Murphree Jr., an
      individual (&#8220;<strong>Murphree</strong>&#8221;); John Steven Lawler, an individual
      (&#8220;<strong>Lawler</strong>&#8221;); James David Shaw, an individual
      (&#8220;<strong>Shaw</strong>&#8221;); William Joseph Aycock, Jr., an individual
      (&#8220;<strong>Aycock</strong>&#8221;); Jerry Ray Cooper, Jr., an individual
      (&#8220;<strong>Cooper</strong>&#8221;); Timothy Wayne Gann, an individual
      (&#8220;<strong>Gann</strong>&#8221;); and Jimmy Ray Hawkins, an individual
      (&#8220;<strong>Hawkins</strong>&#8221;) (individually, a &#8220;<strong>Seller</strong>&#8221; and
      collectively, the &#8220;<strong>Sellers</strong>&#8221;) and Deer Valley Homebuilders,
      Inc., an Alabama corporation (&#8220;<strong>DVHB</strong>&#8221;) and&#160;&#160;Deer
      Valley Corporation, a Florida corporation (&#8220;<strong>Deer Valley</strong>&#8221;), as
      successor to DeerValley Acquisitions Corp., a Florida corporation (all
      previously listed entities, including the Sellers, are collectively the
&#8220;<strong>Parties</strong>&#8221;); and Bush Ross, P.A. a Florida professional
      association, as escrow agent (&#8220;<strong>Escrow
      Agent</strong>&#8221;).&#160;&#160;&#160;Capitalized terms used in this Agreement not
      otherwise defined herein shall have the respective meanings given to them in
      the
      First Amendment to Earnout Agreement (the &#8220;<strong>Amended Earnout
      Agreement</strong>&#8221;) dated November 19, 2007 between the Sellers and DVHB and
      Deer Valley to amend the Earnout Agreement dated January 18, 2006 (the
&#8220;<strong>Transaction</strong>&#8221;).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Background</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
      Amended Earnout Agreement provides
      that Deer Valley shall, among other things, issue 2,000,000 shares of common
      stock of Deer Valley (&#8220;<strong>Common Stock</strong>&#8221;) to the Sellers, which the
      Sellers are required to place in escrow to be released in accordance with the
      terns and conditions of the Amended Earnout Agreement.&#160;&#160;Accordingly,
      in consideration of the foregoing and the respective covenants and promises
      set
      forth in this Agreement, and for other good and valuable consideration, the
      Parties hereby agree as follows:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Operative
      Provisions</strong></font></div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>1.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Appointment
                of the Escrow Agent</u></strong>. The Parties hereby appoint Escrow Agent
                to serve as, and Escrow Agent hereby agrees to act as, escrow agent
                upon
                the terms and conditions of this Agreement.&#160;&#160;Notwithstanding the
                references in this Agreement to the Amended Earnout Agreement, the
                Parties
                acknowledge that Escrow Agent is not a party to the Amended Earnout
                Agreement for any purpose or responsible for it interpretation or
                enforcement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>2.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Deposit
                in Escrow</u></strong>.&#160;&#160;In accordance with the Amended Earnout
                Agreement, the Sellers are depositing with Escrow Agent two million
                (2,000,000) shares of Common Stock (the &#8220;<strong>Escrow Shares</strong>&#8221;).
                Escrow Agent hereby acknowledges receipt thereof.&#160;&#160;Escrow Agent
                hereby agrees to act as escrow agent and to hold, safeguard and disburse
                the Escrow Shares pursuant to the terms and conditions
                hereof.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>3.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Appointment
                of Representative</u></strong>.&#160;&#160;Each of the Sellers hereby
                appoint Logan as his authorized representative to provide and receive
                notices referenced herein, and to otherwise act on their behalf in
                connection with the Escrow Shares (&#8220;<strong>Sellers&#8217;
                Representative</strong>&#8221;).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>4.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Escrow
                Distributions</u></strong>.<strong>&#160;</strong>The Parties agree that
                the Escrow Shares shall be released in accordance with the terms
                and
                conditions of the Amended Earnout Agreement.&#160;&#160;The procedure for
                distribution shall be as follows:&#160;&#160;Written notice shall be
                provided to Escrow Agent by Deer Valley, on the one hand, or by the
                Sellers Representative, on the other, stating that a Distribution
                Date (as
                defined in Section 1.4 of the Amended Earnout Agreement) has occurred
                and
                the Escrow Shares are to be released (the
                &#8220;<strong>Notice</strong>&#8221;).&#160;&#160;Such Notice shall specify the
                number of shares to be released and shall provide instructions on
                how to
                release the specified shares.&#160;&#160;Within five (5) days of Escrow
                Agent receiving the Notice, Escrow Agent shall transmit the Notice
                to Deer
                Valley, if provided by the Sellers&#8217; Representative, or to the Sellers&#8217;
                Representative, if provided by Deer Valley.&#160;&#160;At such time, the
                receiving party shall have thirty (30) days (the &#8220;<strong>Objection
                Period</strong>&#8221;) within which to a provide written objection to the
                Escrow Agent contesting the release of Escrow Shares as specified
                in the
                Notice (an &#8220;<strong>Objection</strong>&#8221;).&#160;&#160;An Objection will be
                deemed received upon receipt by the Escrow Agent.&#160;&#160;If an
                Objection is received by the Escrow Agent, the Escrow Agent shall
                hold the
                Escrow Shares until either (1) the Escrow Agent receives written
                instructions for distribution executed by Deer Valley and the Sellers&#8217;
                Representative; or (2) a judge having jurisdiction over the Amended
                Earnout Agreement shall provide other instructions to the Escrow
                Agent.&#160;&#160;If an Objection is not received during the Objection
                Period, the Escrow Agent shall distribute the Escrow Shares in accordance
                with the Notice.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>5.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Termination
                of Escrow</u></strong>.&#160;&#160;Upon written notice executed by Deer
                Valley and the Sellers&#8217; Representative that this Escrow Agreement has been
                terminated, Escrow Agent shall distribute the then remaining Escrow
                Shares
                as directed in the written notice.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>6.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Duties
                of Escrow Agent.</u></strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(a)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agent shall not be under any duty to give the Escrow Shares held
                by it
                hereunder any greater degree of care than it gives its own similar
                property and shall not be required to invest any shares held hereunder
                except as directed in this
                Agreement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(b)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agent shall not be liable for actions or omissions hereunder, except
                for
                its own willful misconduct and, except with respect to claims based
                upon
                such willful misconduct that are successfully asserted against Escrow
                Agent, the Parties shall jointly and severally indemnify and hold
                harmless
                Escrow Agent (and any successor Escrow Agent) from and against any
                and all
                losses, liabilities, claims, actions, damages and expenses, including
                reasonable attorneys&#8217; fees and disbursements, arising out of and in
                connection with this Agreement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(c)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agent shall be entitled to rely upon any order, judgment, certification,
                demand, notice, instrument or other writing delivered to it hereunder
                without being required to determine the authenticity or the correctness
                of
                any fact stated therein or the propriety or validity of the service
                thereof. Escrow Agent may act in reliance upon any instrument or
                signature
                believed by it to be genuine and may assume that the person purporting
                to
                give receipt or advice or make any statement or execute any document
                in
                connection with the provisions hereof has been duly authorized to
                do so.
                Escrow Agent may conclusively presume that the undersigned representative
                of any party hereto which is an entity other than a natural person
                has
                full power and authority to instruct Escrow Agent on behalf of that
                party
                unless written notice to the contrary is delivered to Escrow
                Agent.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(d)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agent may act pursuant to the advice of counsel with respect to any
                matter
                relating to this Agreement and shall not be liable for any action
                taken or
                omitted by it in good faith in accordance with such
                advice.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(e)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agent does not have any interest in the Escrow Shares deposited hereunder
                but is serving as escrow holder only and has only possession thereof.
                Any
                payments of income from the Escrow Shares shall be subject to withholding
                regulations then in force with respect to United States taxes. The
                parties
                hereto will provide Escrow Agent with appropriate Internal Revenue
                Service
                Forms W-9 for tax identification number certification, or nonresident
                alien certifications. This Section 7 shall survive notwithstanding
                any
                termination of this Agreement or the resignation of Escrow
                Agent.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(f)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agent shall not be called upon to advise any party as to the wisdom
                in
                selling or retaining or taking or refraining from any action with
                respect
                to any securities or other property deposited
                hereunder.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(g)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Escrow
                Agent (and any successor Escrow Agent) may at any time resign as
                such by
                delivering the Escrow Shares to any successor Escrow Agent jointly
                designated by the other parties hereto in writing, or to any court
                of
                competent jurisdiction, whereupon Escrow Agent shall be discharged
                of and
                from any and all further obligations arising in connection with this
                Agreement. The resignation of Escrow Agent will take effect on the
                earlier
                of (i) the appointment of a successor (including a court of competent
                jurisdiction) or (ii) the day which is ten (10) days after the date
                of
                delivery of its written notice of resignation to the Parties. If,
                at that
                time, Escrow Agent has not received a designation of a successor
                Escrow
                Agent, Escrow Agent&#8217;s sole responsibility after that time shall be to
                retain and safeguard the Escrow Shares until receipt of a designation
                of
                successor Escrow Agent or a joint written disposition instruction
                from the
                Parties or a final, nonappealable order of a court of competent
                jurisdiction.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman;">-2-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(h)</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
                Parties shall pay Escrow Agent, at its standard hourly rates, for
                services
                rendered by Escrow Agent hereunder and agree to reimburse Escrow
                Agent for
                all reasonable expenses, disbursements and advances incurred or made
                by
                Escrow Agent in performance of its duties hereunder (including reasonable
                fees, expenses and disbursements of its counsel).&#160;&#160;Any fees or
                expenses of Escrow Agent or its counsel that are not paid as provided
                for
                herein may be taken from any property held by Escrow Agent
                hereunder.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>7.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Limited
                Responsibility</u></strong>.&#160;&#160;This Agreement expressly sets
                forth all the duties of Escrow Agent with respect to any and all
                matters
                pertinent hereto. No implied duties or obligations shall be read
                into this
                Agreement against Escrow Agent. Escrow Agent shall not be bound by
                the
                provisions of any agreement among the other parties hereto except
                this
                Agreement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>8.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Notices</u></strong>.&#160;&#160;All
                notices, consents, waivers and other communications required or permitted
                under this Agreement shall be in writing and shall be deemed given
                to a
                party when (a) delivered to the appropriate address by hand or by
                a
                nationally recognized overnight courier service (costs prepaid);
                (b) sent
                by facsimile (with confirmation by the transmitting equipment); or
                (c)
                received by the addressee, if sent by certified mail, return receipt
                requested, in each case to the following addresses and facsimile
                numbers
                and marked to the attention of the person (by name or title) designated
                below (or to such other address, facsimile number or person as a
                party may
                designate by notice to the other
                parties):</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
      to
      Deer Valley, to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Deer
      Valley Corporation</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4904
      Eisenhower Blvd., Suite 185</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Tampa,
      Florida 33634</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Attn:&#160;&#160;Charles
      G. Masters</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
      to the
      Sellers, to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Attn:
      Joel Stephen Logan II</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">205
      Carriage St.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Guin,
      Alabama 35563</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
      to
      Escrow Agent, to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Bush
      Ross, P.A.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">220
      South
      Franklin Street</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Tampa,
      Florida 33602</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Facsimile
      No. (813) 223-9620</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 117pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Attn:&#160;&#160;Brent
      A. Jones</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>9.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Jurisdiction;
                Service of Process</u></strong>.&#160;&#160;Any proceeding arising out of
                or relating to this Agreement may be brought in the courts of the
                State of
                Florida, County of Hillsborough, or, if it has or can acquire
                jurisdiction, in the United States District Court for the Middle
                District
                of Florida, and each of the parties irrevocably submits to the exclusive
                jurisdiction of each such court in any such proceeding and waives
                any
                objection it may now or hereafter have to venue or to convenience
                of
                forum, agrees that all claims in respect of the proceeding shall
                be heard
                and determined only in any such court and agrees not to bring any
                proceeding arising out of or relating to this Agreement in any other
                court. Process in any proceeding referred to in the preceding sentence
                may
                be served on any party anywhere in the
                world.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>10.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Execution
                of Agreement</u></strong>.&#160;&#160;This Agreement may be executed in
                one or more counterparts, each of which will be deemed to be an original
                copy of this Agreement and all of which, when taken together, will
                be
                deemed to constitute one and the same agreement. The exchange of
                copies of
                this Agreement and of signature pages by facsimile transmission shall
                constitute effective execution and delivery of this Agreement as
                to the
                parties and <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">may
                be used in lieu of the original Agreement for all purposes. Signatures
                of
                the parties transmitted by facsimile shall be deemed to be their
                original
                signatures for any purposes
                whatsoever.</font></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman;">-3-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>11.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Waiver</u></strong>.
                The rights and remedies of the parties to this Agreement are cumulative
                and not alternative. Neither the failure nor any delay by any party
                in
                exercising any right, power or privilege under this Agreement or
                the
                documents referred to in this Agreement will operate as a waiver
                of such
                right, power or privilege, and no single or partial exercise of any
                such
                right, power or privilege will preclude any other or further exercise
                of
                such right, power or privilege or the exercise of any other right,
                power
                or privilege. To the maximum extent permitted by applicable law,
                (a) no
                claim or right arising out of this Agreement or the documents referred
                to
                in this Agreement can be discharged by one party, in whole or in
                part, by
                a waiver or renunciation of the claim or right unless in writing
                signed by
                the other party; (b) no waiver that may be given by a party will
                be
                applicable except in the specific instance for which it is given;
                and (c)
                no notice to or demand on one party will be deemed to be a waiver
                of any
                obligation of such party or of the right of the party giving such
                notice
                or demand to take further action without notice or demand as provided
                in
                this Agreement or the documents referred to in this
                Agreement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>12.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Entire
                Agreement and Modification</u></strong>.&#160;&#160;This Agreement
                supersedes all prior agreements among the parties with respect to
                its
                subject matter and constitutes (along with the documents referred
                to in
                this Agreement) a complete and exclusive statement of the terms of
                the
                agreement between the parties with respect to its subject matter.
                This
                Agreement may not be amended except by a written agreement executed
                by
                each of the Parties and the Escrow
                Agent.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>13.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Governing
                Law</u></strong>.&#160;&#160;This Agreement shall be governed by the laws
                of the State of Florida without regard to conflicts of law principles
                that
                would require the application of any other
                Law.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>14.</strong></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>Waiver
                of Conflict.</u></strong>&#160;&#160;The Escrow Agent represents Deer
                Valley in various legal matters including consummation of the
                Transaction.&#160;&#160;The Escrow Agent has agreed to serve as the escrow
                agent as an accommodation to the parties hereto.&#160;&#160;Each party
                waives any conflict of interest that it might be able to assert against
                the Escrow Agent&#8217;s continued representation of Deer Valley or any of its
                Affiliates in the matters contemplated by the Amended Earnout Agreement,
                any dispute arising thereunder or
                otherwise.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman;">-4-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>The
      parties have executed and delivered
      this Escrow Agreement as of the date first written above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="justify" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>DEER
                VALLEY CORPORATION</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">By:
                <u>/s/ Charles G. Masters</u></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Charles
                G. Masters, President &amp; CEO</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>DEER
                VALLEY HOMEBUILDERS, INC.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">By:
                <u>/s/ Charles G. Masters</u></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Charles
                G. Masters, Chairman Board of Directors</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SELLERS:</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>/s/
              Joel Stephen Logan II</u></font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Joel
                Stephen Logan II</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>/s/
              Charles L. Murphree, Jr.</u></font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Charles
                L. Murphree, Jr.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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              James David Shaw</u></font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>/s/
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>/s/
              Jimmy Ray Hawkins</u></font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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                Ray Hawkins</font></div>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
            <td align="left" valign="top" width="41%">
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            <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;</font></td>
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      PAGE - ESCROW AGREEMENT]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>ex99-1.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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  <head>
    <title>ex99-1.htm</title>
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    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Exhibit
      99.1<br></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>DEER
      VALLEY CORPORATION MODIFIES EARN-OUT AGREEMENT TO REDUCE ACCRUED LIABILITIES
      AND
      TO MORE TIGHTLY ALIGN MANAGEMENT INCENTATIVES WITH INCREASING SHARE
      VALUE</strong></font></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">November
      21, 2007</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Deer
      Valley Corporation, (&#8220;Deer Valley&#8221; or the &#8220;Company&#8221;) (OTCBB: DVLY), announced
      today that the Company and the original founders (&#8220;Founders&#8221;), now the core
      operating management for the Company&#8217;s wholly owned subsidiary, Deer Valley
      Homebuilders, Inc. (&#8221;DVHB&#8221;) have entered into a revised earnout
      agreement.&#160;&#160;The revision to the original 2006 agreement will
      dramatically reduce accruing cash liabilities related to the original earn-out
      agreement.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      accrued liabilities were expected to have totaled approximately $2.75 million,
      by December 31, 2007.&#160;&#160;This amount will now be paid just prior to year
      end.&#160;&#160;In exchange for the elimination of future performance based cash
      accruals that were expected to total an additional $2 million over the next
      12
      to 36 months, the Company will issue to the Founders two million shares of
      Deer
      Valley&#8217;s common stock. The stock will be held in escrow for a period of
      approximately three and one half years.&#160;&#160;Furthermore, the final number
      of shares released to recipients may be reduced in accordance with vesting
      requirements if the original earnout criteria is not met.&#160;&#160;For those
      shares that are ultimately released, if the open market price of the shares
      at
      the time of the release should be less than $1.00/share the Company has agreed
      to either issue additional shares or pay a cash amount equal to the difference
      between $1.00 and the share price.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Company&#8217;s CEO, Mr. Charles G. Masters, commented, &#8220;As a result of the rapid
      growth and strong profitability of, Deer Valley Homebuilders, Inc., we now
      expect to see the full satisfaction of the earnout criteria, as defined in
      our
      2006 agreement, to occur two years prior to our expectations.&#160;&#160;This
      exceptionally rapid earn-out and the reality of certain bank ratio calculations
      suggested that a change to the agreement would significantly enhance the
      Company&#8217;s financial flexibility. This reduction of liabilities improves certain
      lending ratios and strengthens the Company&#8217;s access to debt
      capital.&#160;&#160;Perhaps more importantly, the exchange of stock preempts the
      future growth of a cash liability and more closely ties the operating
      management&#8217;s compensation to the interests of the
      shareholders.&#8221;&#160;&#160;&#160;Mr. Masters added,&#160;&#160;&#8220;Today, the
      Company is solidly profitable and well capitalized. The use of cash and common
      stock to retire a significant cash liability helps us set the stage for
      additional growth.&#160;&#160;The common shares related to the transaction are
      are being issued at no discount to the current open market and are being
      escrowed for over three years.&#160;&#160;Most importantly, this revision to the
      earn-out agreement ratifies our operating team&#8217;s commitment to a level of
      corporate performance that implies their expectation of a rising share
      price.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>About
      Deer Valley</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Deer
      Valley is a growth-oriented manufactured home builder with headquarters in
      Tampa, Florida and operations in Guin and Sulligent, Alabama.&#160;&#160;The
      Company is dedicated to offering high quality homes that are delivered with
      a
      sense of warmth, friendliness, and personal pride.&#160;&#160;The Company is
      relatively young, but the management team has over 250 years of combined
      industry experience from various backgrounds including general management,
      production, sales, customer service, and finance. The Company&#8217;s plants are
      operating on a five days per week, single shift schedule.&#160;&#160;The Company
      has no idle facilities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Forward-Looking-Statement:
      Except for factual statements made herein, the information contained in this
      press release consists of forward-looking statements that involve risks and
      uncertainties, including the effect of changing economic conditions, competition
      within the manufactured home industry, customer acceptance of products,
      fulfillment of contracts with key customers, and other risks and uncertainties.
      Such forward-looking statements are not guarantees of performance, and Deer
      Valley&#8217;s results could differ materially from those contained in such
      statements. You can generally identify forward-looking statements through words
      and phrases such as <em>&#8220;forecast&#8221;</em>, &#8220;<em>seek</em>&#8221;, &#8220;<em>anticipate</em>&#8221;,
&#8220;<em>believe</em>&#8221;, &#8220;<em>estimate</em>&#8221;, &#8220;<em>expect</em>&#8221;, &#8220;<em>intend</em>&#8221;,
&#8220;<em>plan</em>&#8221;,
&#8220;<em>budget</em>&#8221;,
&#8220;<em>project</em>&#8221;,
&#8220;<em>may
      be</em>&#8221;,
&#8220;<em>may continue</em>&#8221;, &#8220;<em>may likely result</em>&#8221;, and similar expressions.
      Such forward-looking statements speak only as of the date of this release,
      and
      Deer Valley undertakse no obligation to publicly update any forward-looking
      statements to reflect new information, events or circumstances after the date
      of
      this release.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      corporate offices of Deer Valley are located at 4218 West Linebaugh Avenue,
      Tampa, FL 33624.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Additional
      information can be found at: http://www.deervalleycorp.com.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Contact
      Information:</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Deer
      Valley Corporation, Tampa, Florida</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Charles
      G. Masters (813) 885-5998</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">cmasters@deervalleycorp.com</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">www.deervalleycorp.com</font></div>
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