ESCROW DEPOSIT AGREEMENT

AGREEMENT dated this ____ day of [ ______ ] 2007, by and among RxElite Holdings,
Inc., a Delaware corporation (the “Company”), having an address at 1404 N. Main
Street, Suite 200, Meridian, Idaho 83642, [___________] (the “Investor
Representative”) and SIGNATURE BANK (the “Escrow Agent”), a New York State
chartered bank, having an office at 300 Park Avenue, New York, New York 10022.
 
WITNESSETH:

WHEREAS, the Company is offering (the “Offering”) a minimum of $5,000,000 (the
“Minimum Amount”) of the Company’s units (the “Units”), each Unit consisting of
one share of the Company’s common stock, par value $0.00237 per share (the
“Common Stock”) and a detachable warrant to purchase ½ of one share of Common
Stock at an exercise price of $0.85 per share;
 
WHEREAS, unless the Offering is completed by ________, 2007 (the “Termination
Date”), unless extended by the Company and the Investor Representative for up at
an additional 1-week period (the “Final Termination Date”), the Offering will
terminate and all funds will be returned to the subscribers in the Offering (the
“Subscribers”) without interest, penalty or offset;
 
WHEREAS, immediately prior to the initial closing of the Offering, Subscribers
will be provided a draft Current Report on Form 8-K (the “Form 8-K”), and in
connection therewith Subscribers will be asked to execute a reconfirmation of
their desire to subscribe for the Units in the Offering;
 
WHEREAS, the Company desires to establish an escrow account with the Escrow
Agent into which the Company shall instruct the Subscribers to deposit checks
and other instruments or wire funds for the payment of money made payable to the
order of “Signature Bank, as Escrow Agent for RxElite Holdings, Inc.,” and
Escrow Agent is willing to accept said checks and other instruments and wires
for the payment of money in accordance with the terms hereinafter set forth;
 
WHEREAS, the Company represents and warrants to the Escrow Agent that it has not
stated to any individual or entity that the Escrow Agent’s duties will include
anything other than those duties stated in this Agreement; and
 
WHEREAS, the Company represents and warrants to the Escrow Agent that a copy of
all documents that have been delivered to Subscribers and third parties that
include Escrow Agent’s name and duties, have been attached hereto as Schedule I.
 
NOW, THEREFORE, IT IS AGREED as follows:
 
1. Delivery of Escrow Funds.
 
(a) The Company shall instruct Subscribers to deliver to Escrow Agent checks
made payable to the order of “Signature Bank, as Escrow Agent for RxElite
Holdings, Inc.”, or wire transfer to [___________] for credit to Signature Bank,
as Escrow Agent for RxElite Holdings, Inc., Account No. _____________, in each
case, with the name, address and social security number or taxpayer
identification number of the individual or entity making payment. In the event
any Subscriber’s address and/or social security number or taxpayer
identification number are not provided to Escrow Agent by the Subscriber, then
the Company and the Investor Representative agree to promptly provide Escrow
Agent with such information (unless the Subscriber is a non-U.S. person). The
checks or wire transfers shall be deposited into a non-interest-bearing account
at Signature Bank entitled “Signature Bank, as Escrow Agent for RxElite
Holdings, Inc.” (the “Escrow Account”).
 

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(b) The collected funds deposited into the Escrow Account are referred to as the
“Escrow Funds.”
 
(c) Escrow Agent shall have no duty or responsibility to enforce the collection
or demand payment of any funds deposited into the Escrow Account. If, for any
reason, any check deposited into Escrow Account shall be returned unpaid to the
Escrow Agent, the sole duty of the Escrow Agent shall be to return the check to
the Subscriber and advise the Company promptly thereof.
 
(d) Escrow Agent shall hold all Escrow Funds in the Escrow Account free from any
lien, claim or offset of Escrow Agent, except as set forth herein.
 
2. Release of Escrow Funds. The Escrow Funds shall be paid by the Escrow Agent
in accordance with the following:
 
(a) In the event that the Company and the Investor Representative advise Escrow
Agent in writing that the Offering has been terminated (the “Termination
Notice”), Escrow Agent shall promptly return the funds paid by each Subscriber
to said Subscriber without interest or deduction, penalty or expense.
 
(b) If prior to 3:00 P.M. (local New York City time) on the Termination Date,
Escrow Agent receives written notification, in the form of Exhibit A, attached
hereto and made a part hereof, and signed by the Company and the Investor
Representative, stating that the Termination Date has been extended, the date
shall be so extended to the Final Termination Date.
 
(c) Provided that the Escrow Agent does not receive the Termination Notice
stated in paragraph 2(a) above and there is the Minimum Amount deposited into
the Escrow Account on or prior to the end of the Termination Date or the Final
Termination Date (if Escrow Agent has, prior to the Termination Date, received
Exhibit A in accordance with paragraph 2(b) above), Escrow Agent shall, upon
receipt of written instructions, in form and substance satisfactory to Escrow
Agent, received from the Company and the Investor Representative (including a
representation from the Company that the Company has furnished each Subscriber
with the Form 8-K and that each Subscriber reconfirmed its investment in the
Offering following receipt of the Form 8-K), pay the Escrow Funds in accordance
with such written instructions, such payment or payments to be made by wire
transfer within one (1) business day of receipt of such written instructions.
The same procedures shall be coordinated with respect to any subsequent closings
occurring prior to the Termination Date (if Escrow Agent has, prior to the
Termination Date, received Exhibit A in accordance with paragraph 2(b) above).
 
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(d) If by 3:00 P.M. (local New York City time) on the later of the Termination
Date or the Final Termination Date (if Escrow Agent has received Exhibit A, in
accordance with paragraph 2(b) above), Escrow Agent (i) has not received written
instructions from the Company and the Investor Representative and wire transfer
instructions executed by the Company and the Investor Representative regarding
the disbursement of the Escrow Funds and payment of fees and expenses of the
Offering, or (ii) there is a balance in Escrow Account of less than the Minimum
Amount, the Escrow Agent shall promptly return the Escrow Funds to the
Subscribers without interest or deductions, penalty or expense. The Escrow Funds
returned to each Subscriber shall be free and clear of any and all claims of
Escrow Agent.
 
(e) Escrow Agent shall not be required to pay any uncollected funds or any funds
which are not available for withdrawal.
 
(f) If the Termination Date or any other date that is a deadline under this
Agreement for giving Escrow Agent notice or instructions or for the Escrow Agent
to take action is not a Banking Day, then such date shall be changed to the
Banking Day that immediately precedes such date. A “Banking Day” is any day
other than a Saturday, Sunday or a day that a New York State chartered bank is
not legally obligated to be opened.
 
(g) The Company may reject or cancel any subscription in the Offering in whole
or in part. If payment for any such rejected or canceled subscription has been
delivered to Escrow Agent, the Company will inform Escrow Agent of the rejection
or cancellation, and Escrow Agent upon receiving such notice shall promptly
return such funds to said Subscriber, but in no event prior to those funds
becoming collected and available for withdrawal. In addition, Subscribers are
required to reconfirm their subscription upon receipt of the Form 8-K.
Subscribers who do not reconfirm their subscription will be entitled to a return
of their subscription funds, without interest or deduction, and Escrow Agent
upon receiving written notice from the Company shall promptly return such funds
to such Subscribers.
 
(h) Notwithstanding anything to contrary that may be contained herein, any
Subscribers may instruct Escrow Agent to return such Subscriber’s subscriptions
at any time prior to a closing on such Subscriber’s funds in accordance with the
terms set forth herein. Upon receipt of such an instruction, Escrow Agent shall
promptly return such funds to said Subscriber.
 
3. Acceptance by Escrow Agent. Escrow Agent hereby accepts and agrees to perform
its obligations hereunder, provided that:
 
(a) Escrow Agent may act in reliance upon any signature believed by it to be
genuine, and may assume that any person who has been designated by the Company
and any other person to give any written instructions, notice or receipt, or
make any statements in connection with the provisions hereof has been duly
authorized to do so. Escrow Agent shall have no duty to make inquiry as to the
genuineness, accuracy or validity of any statements or instructions or any
signatures on statements or instructions. The names and true signatures of each
individual authorized to act singly on behalf of the Company and other persons
are stated in Schedule II, which is attached hereto and made a part hereof. The
Company and each other person may each remove or add one or more of its
authorized signers stated on Schedule II by notifying the Escrow Agent of such
change in accordance with this Agreement, which notice shall include the true
signature for any new authorized signatories.
 
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(b) Escrow Agent may act relative hereto in reliance upon advice of counsel in
reference to any matter connected herewith. The Escrow Agent shall not be liable
for any mistake of fact or error of judgment or law, or for any acts or
omissions of any kind, unless caused by its willful misconduct or gross
negligence.
 
(c) The Company and the Investor Representative agree to indemnify and hold
Escrow Agent harmless from and against any and all claims, losses, costs,
liabilities, damages, suits, demands, judgments or expenses (including but not
limited to reasonable attorney’s fees) claimed against or incurred by Escrow
Agent, in good faith, arising out of or related, directly or indirectly, to this
Escrow Agreement unless caused by a breach of this Escrow Agreement by Escrow
Agent or by Escrow Agent’s gross negligence or willful misconduct.
 
(d) In the event that Escrow Agent shall be uncertain as to its duties or rights
hereunder, Escrow Agent shall be entitled to (i) refrain from taking any action
other than to keep safely the Escrow Funds until it shall be directed otherwise
by a court of competent jurisdiction, or (ii) deliver the Escrow Funds to a
court of competent jurisdiction.
 
(e) Escrow Agent shall have no duty, responsibility or obligation to interpret
or enforce the terms of any agreement other than Escrow Agent’s obligations
hereunder, and the Escrow Agent shall not be required to make a request that any
monies be delivered to the Escrow Account, it being agreed that the sole duties
and responsibilities of Escrow Agent, to the extent not prohibited by applicable
law, shall be (i) to accept checks or other instruments for the payment of money
and wire transfers delivered to Escrow Agent for the Escrow Account and deposit
said checks and wire transfers into the non-interest bearing Escrow Account, and
(ii) to disburse or refrain from disbursing the Escrow Funds as stated above,
provided that the checks received by Escrow Agent have been collected and are
available for withdrawal.
 
4. Resignation and Termination of the Escrow Agent. Escrow Agent may resign at
any time by giving 30 days’ prior written notice of such resignation to the
Company and the Investor Representative. Upon providing such notice, Escrow
Agent shall have no further obligation hereunder except to hold the Escrow Funds
that it receives until the end of such 30-day period. In such event, Escrow
Agent shall not take any action, other than receiving and depositing funds,
until the Company and the Investor Representative have designated a banking
corporation, trust company, attorney or other person as successor. Upon receipt
of such written designation signed by the Company and the Investor
Representative, the Escrow Agent shall promptly deliver the Escrow Funds to such
successor and shall thereafter have no further obligations hereunder. If such
instructions are not received within 30 days following the effective date of
such resignation, then the Escrow Agent may deposit the Escrow Funds and any
other amounts held by it pursuant to this Agreement with a clerk of a court of
competent jurisdiction pending the appointment of a successor. In either case
provided for in this paragraph, Escrow Agent shall be relieved of all further
obligations and released from all liability thereafter arising with respect to
the Escrow Funds.
 
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5. Termination. The Company and the Investor Representative may terminate the
appointment of the Escrow Agent hereunder upon written notice specifying the
date upon which such termination shall take effect, which date shall be at least
30 days from the date of such notice. In the event of such termination, the
Company and the Investor Representative shall, within 30 days of such notice,
appoint a successor escrow agent and the Escrow Agent shall, upon receipt of
written instructions signed by the Company and the Investor Representative turn
over to such successor escrow agent all of the Escrow Funds; provided, however,
that if the Company and the Investor Representative fail to appoint a successor
escrow agent within such 30-day period, such termination notice shall be null
and void and Escrow Agent shall continue to be bound by all of the provisions
hereof. Upon receipt of the Escrow Funds, the successor escrow agent shall
become Escrow Agent hereunder and shall be bound by all of the provisions hereof
and Signature Bank shall be relieved of all further obligations and released
from all liability thereafter arising with respect to the Escrow Funds.
 
6. Investment. All funds received by Escrow Agent will be held only in
non-interest bearing bank accounts at Signature Bank.
 
7. Compensation. Escrow Agent shall be entitled, for the duties to be performed
by it hereunder, to a fee of $2,500 which fee shall be paid by the Company
promptly following the signing of this Agreement. In addition, the Company shall
be obligated to reimburse Escrow Agent for all costs and expenses incurred in
good faith in connection with the Escrow Account and this Agreement, including
reasonable counsel fees. Neither the modification, cancellation, termination or
rescission of this Agreement, nor the resignation or termination of the Escrow
Agent shall affect the right of Escrow Agent to retain the amount of any fee
that has been paid, or be reimbursed or paid for any fees, costs or expenses
that have been incurred or become due prior to the effective date of any such
modification, cancellation, termination, resignation or rescission. To the
extent Escrow Agent has incurred any such costs or expenses or any such fees
become due prior to any closing, Escrow Agent shall advise the Company and the
Investor Representative and the Company and the Investor Representative shall
direct all such amounts to be paid directly at any such closing.
 
8. Notices. All notices, requests, demands and other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given if sent by hand-delivery, by facsimile (followed by first-class
mail), by nationally recognized overnight courier service or by registered or
certified mail, return receipt requested, in each case costs prepaid, to the
addresses set forth below.
 
If to the Company:
 
RxElite Holdings Inc.
1404 N. Main Street, Suite 200
Meridian, ID 83642
Attention: Daniel Chen, Chief Executive Officer
 
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If to the Investor Representative:
_______________
_______________
_______________

If to Escrow Agent:
 
Signature Bank
300 Park Avenue
New York, New York 10022
Attention: Mr. Norman Lowe, Group Director and Senior Vice President

9. General.
 
(a) This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of New York applicable to agreements made and to be
entirely performed within such State without regard to choice of law principles.
 
(b) This Agreement sets forth the entire agreement and understanding of the
parties in respect to the matters contained herein and supersedes all prior
agreements, arrangements and understandings relating thereto.
 
(c) All of the terms and conditions of this Agreement shall be binding upon, and
inure to the benefit of and be enforceable by, the parties hereto.
 
(d) This Agreement may be amended, modified, superseded or canceled, and any of
the terms or conditions hereof may be waived, only by a written instrument
executed by each party hereto or, in the case of a waiver, by the party waiving
compliance. The failure of any party at any time or times to require performance
of any provision hereof shall in no manner affect its right at a later time to
enforce the same. No waiver of any party of any condition, or of the breach of
any term contained in this Agreement, whether by conduct or otherwise, in any
one or more instances shall be deemed to be or construed as a further or
continuing waiver of any such condition or breach or a waiver of any other
condition or of the breach of any other term of this Agreement. No party may
assign any rights, duties or obligations hereunder unless all other parties have
given their prior written consent.
 
(e) If any provision included in this Agreement proves to be invalid or
unenforceable, it shall not affect the validity of the remaining provisions.
 
(f) This Agreement and any amendment or modification of this Agreement may be
executed in several counterparts or by separate instruments and all of such
counterparts and instruments shall constitute one agreement, binding on all of
the parties hereto.
 
10. Form of Signature. The parties hereto agree to accept a facsimile
transmission copy of their respective actual signatures as evidence of their
actual signatures to this Agreement and any amendment or termination of this
Agreement; provided, however, that each party who produces a facsimile signature
agrees, by the express terms hereof, to place, promptly after transmission of
his or her signature by fax, a true and correct original copy of his or her
signature in overnight mail to the address of the other party.
 
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[SIGNATURE PAGE FOLLOWS] 
 
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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
first set forth above. 
 

    RXELITE HOLDINGS, INC.    
 
By:  

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Name: 

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Title:  

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INVESTOR REPRESENTATIVE
 
By:  

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Name:  

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Title:  

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SIGNATURE BANK
 
By:  

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Name:  

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Title:  

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By:  

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Name:  

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Title:  

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EXHIBIT A

Date: __________________
Signature Bank
300 Park Avenue
New York, New York 10022
Attention: Norman Lowe, Group Director and Senior Vice President

Dear Mr. Lowe:

In accordance with the terms of Section 2(b) of an Escrow Deposit Agreement
dated __________, 2007, by and among RXELITE HOLDINGS, INC. (the “Company”),
[            ] (the “Investor Representative”) and SIGNATURE BANK (the “Escrow
Agent”), the Company and the Investor Representative hereby notify the Escrow
Agent that the Termination Date has been extended to __________ __, 2007.
 
Very truly yours,

RXELITE HOLDINGS, INC.
 
By:  

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Name:  

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Title:  

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INVESTOR REPRESENTATIVE
 
By:  

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Name:  

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Title: 

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Schedule I

OFFERING DOCUMENTS
 

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Schedule II

The Escrow Agent is authorized to accept instructions signed or believed by the
Escrow Agent to be signed by the following on behalf of RxElite Holdings, Inc.
and [       ] (the “Investor Representative”).
 
RXELITE HOLDINGS, INC.

Name
 
True Signature
 

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OR

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INVESTOR REPRESENTATIVE

Name
 
True Signature
 

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OR

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