Document:

Unassociated Document

    SECURITIES
      ESCROW AGREEMENT

    

    THIS
      SECURITIES ESCROW AGREEMENT (the
      “Agreement”),
      dated
      August 9, 2007, is entered into by and among Jpak Group, Inc., a Nevada
      corporation (f/k/a Rx Staffing, Inc., the “Company”),
      Vision Opportunity Master Fund, Ltd., a Cayman Islands company (“Vision”),
      QVT
      Fund LP, a Cayman Island limited partnership (“QVT”),
      Quintessence Fund L.P., a Cayman Island limited partnership (“Quintessence”,
      and
      together with Vision and QVT, the “Purchasers”),
      certain stockholders of the Company set forth on Schedule
      A
      (the
“Principal
      Stockholders”),
      and
      Kramer Levin Naftalis & Frankel LLP, with an address at 1177 Avenue of the
      Americas, New York, New York 10036 (the “Escrow
      Agent”).
      

    

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Purchasers will be acquiring from the Company shares of Series A convertible
      preferred stock (the “Preferred
      Shares”),
      convertible into shares of the Company’s common stock, par value $0.001 per
      share (the “Common
      Stock”)
      upon
      conversion of certain notes held by the Purchasers (the “Notes”);
      

     

    WHEREAS,
      as an inducement to the Purchasers to acquire the Preferred Shares, the
      Principal Stockholders have agreed to place the Escrow Shares (as hereinafter
      defined) into escrow for the benefit of the Purchasers in the event the Company
      fails to achieve net income for the fiscal year ended June 30, 2008
      (“Fiscal
      2008”)
      of
      $3.955 million (the “Fiscal
      2008 Performance Threshold”),
      as
      reported by the Company in its audited financial statements for Fiscal 2008
      prepared in accordance with US GAAP (the “Fiscal
      2008 Financial Statements”),
      as
      more fully described in Section 1.3; and

    

    WHEREAS,
      the Company and the Purchasers have requested that the Escrow Agent hold the
      Escrow Shares on the terms and conditions set forth in this Agreement and the
      Escrow Agent has agreed to act as escrow agent pursuant to the terms and
      conditions of this Agreement.

    

    NOW,
      THEREFORE, in consideration of the covenants and mutual promises contained
      herein and other good and valuable consideration, the receipt and legal
      sufficiency of which are hereby acknowledged and intending to be legally bound
      hereby, the parties agree as follows:

    

    ARTICLE
      I  

    TERMS
      OF
      THE ESCROW

    

    1.1  The
      parties hereby agree to establish an escrow account with the Escrow Agent
      whereby the Escrow Agent shall hold the Escrow Shares as contemplated by this
      Agreement. 

     

    1.2  Upon
      the
      execution of this Agreement, the Principal Stockholders shall deliver to the
      Escrow Agent stock certificates evidencing an aggregate of 7,200,000 shares
      of
      Common Stock, along with undated stock powers executed in blank with signature
      medallion guaranteed, as set forth on Schedule
      A
      (the
“Escrow
      Shares”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.3  The
      parties hereby agree that the Escrow Shares shall be delivered as set forth
      below:

     

    (i)  If
      the
      Company’s net income for Fiscal 2008, as disclosed in the Company’s Fiscal 2008
      Financial Statements, is less than 59.99% of the Fiscal 2008 Performance
      Threshold, all of the Escrow Shares shall be distributed on
      a pro
      rata basis to the Purchasers based on the number of Preferred Shares owned
      by
      such Purchasers as of the date thereof.
      Within
      three (3) business days of the Purchasers’ receipt of the Fiscal 2008 Financial
      Statements, the Company and the Purchasers shall provide joint written
      instructions to the Escrow Agent instructing the Escrow Agent to deliver the
      Escrow Shares to the Purchasers on a pro rata basis based on the number of
      Preferred Shares owned by such Purchasers as of the date thereof in accordance
      with the terms of this Section 1.3(i).

     

    (ii)  If
      the
      Company’s net income for Fiscal 2008, as disclosed in the Company’s Fiscal 2008
      Financial Statements, is equal to or greater than 60% but less than 69.99%
      of
      the Fiscal 2008 Performance Threshold, the Escrow Agent shall deliver to (A)
      the
      Purchasers, on a pro rata basis based on the number of Preferred Shares owned
      by
      such Purchasers as of the date thereof, 5,400,000 Escrow Shares
      and (B)
      the Principal Stockholders 1,800,000 Escrow Shares, on a pro rata basis. Within
      three (3) business days of the Purchasers’ receipt of the Fiscal 2008 Financial
      Statements, the Company and the Purchasers shall provide joint written
      instructions to the Escrow Agent instructing the Escrow Agent to deliver the
      Escrow Shares to the Purchasers, on a pro rata basis based on the number of
      Preferred Shares owned by such Purchasers as of the date thereof, and the
      Principal Stockholders in accordance with the terms of this Section
      1.3(ii).

     

    (iii)  If
      the
      Company’s net income for Fiscal 2008, as disclosed in the Company’s Fiscal 2008
      Financial Statements, is equal to or greater than 70% but less than 79.99%
      of
      the Fiscal 2008 Performance Threshold, the Escrow Agent shall deliver to (A)
      the
      Purchasers, on a pro rata basis based on the number of Preferred Shares owned
      by
      such Purchasers as of the date thereof, 3,600,000 Escrow Shares and (B) the
      Principal Stockholders 3,600,000 Escrow Shares, on a pro rata basis. Within
      three (3) business days of the Purchasers’ receipt of the Fiscal 2008 Financial
      Statements, the Company and the Purchasers shall provide joint written
      instructions to the Escrow Agent instructing the Escrow Agent to deliver the
      Escrow Shares to the Purchasers, on a pro rata basis based on the number of
      Preferred Shares owned by such Purchasers as of the date thereof, and the
      Principal Stockholders in accordance with the terms of this Section
      1.3(iii).

     

    (iv)  If
      the
      Company’s net income for Fiscal 2008, as disclosed in the Company’s Fiscal 2008
      Financial Statements, is equal to or greater than 80% but less than or equal
      to
      90% of the Fiscal 2008 Performance Threshold, the Escrow Agent shall deliver
      to
      (A) the Purchasers, on a pro rata basis based on the number of Preferred Shares
      owned by such Purchasers as of the date thereof, 1,800,000 Escrow Shares and
      (B)
      the Principal Stockholders 5,400,000 Escrow Shares, on a pro rata basis. Within
      three (3) business days of the Purchasers’ receipt of the Fiscal 2008 Financial
      Statements, the Company and the Purchasers shall provide joint written
      instructions to the Escrow Agent instructing the Escrow Agent to deliver the
      Escrow Shares to the Purchasers, on a pro rata basis based on the number of
      Preferred Shares owned by such Purchasers as of the date thereof, and the
      Principal Stockholders in accordance with the terms of this Section
      1.3(iv).

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (v)  If
      the
      Company’s net income for Fiscal 2008, as disclosed in the Company’s Fiscal 2008
      Financial Statements, is equal to or greater than 90.01% of the Fiscal 2008
      Performance Threshold, the Escrow Agent shall return and deliver all of the
      Escrow Shares to the Principal Stockholders at the address set forth in Section
      4.3 hereof. Within three (3) business days of the Purchasers’ receipt of the
      Fiscal 2008 Financial Statements, the Company and the Purchasers shall provide
      joint written instructions to the Escrow Agent instructing the Escrow Agent
      to
      deliver the Escrow Shares to the Principal Stockholders in accordance with
      the
      terms of this Section 1.3(v).

     

    Notwithstanding
      anything to the contrary herein, only those Purchasers who own Preferred Shares
      acquired pursuant to conversion of the Notes and remain shareholders of the
      Company at the time that any Escrow Shares become deliverable hereunder shall
      be
      entitled to their pro rata portion of such Escrow Shares. 

    

    1.4  If
      the
      Company does not achieve at least 90.01% of the Fiscal 2008 Performance
      Threshold, the Company shall use its reasonable best efforts to promptly cause
      the Escrow Shares to be delivered to the Purchasers, including causing its
      transfer agent promptly to issue the certificates in the names of the Purchasers
      and causing its securities counsel to provide any written instruction required
      by the Escrow Agent in a timely manner so that the issuances and delivery
      contemplated above can be achieved as soon as practicable following delivery
      of
      the Fiscal 2008 Financial Statements to the Purchasers. 

     

    1.5  The
      Company will provide the Purchasers with the Company’s Fiscal 2008 Financial
      Statements, on or before October 31, 2008, so as to allow the Purchasers the
      opportunity to evaluate whether the Fiscal 2008 Performance Threshold was
      attained.

     

    1.6  Upon
      the
      joint written request of the Company and the Purchasers, the Escrow Agent shall
      deliver the Escrow Shares to each Purchaser and/or each Principal Stockholder
      pursuant to the joint written instructions of the Company and the
      Purchasers.

     

    

    ARTICLE
      II

    REPRESENTATIONS
      OF THE PRINCIPAL STOCKHOLDERS

    

    2.1  Each
      of
      the Principal Stockholders hereby represents and warrants to the Purchasers
      as
      follows: 

     

    (i)  The
      Principal Stockholder is the record and beneficial owner of the Escrow Shares
      set forth next to such Principal Stockholder’s name on Schedule
      A
      and has
      good title to such Escrow Shares, free and clear of all pledges, liens, claims
      and encumbrances, except encumbrances created by this Agreement. There are
      no
      restrictions on the ability of the Principal Stockholder to transfer such Escrow
      Shares or to enter into this Agreement other than transfer restrictions under
      applicable federal and state securities laws. Upon any delivery of Escrow Shares
      to the Purchasers hereunder, the Purchasers will acquire good and valid title
      to
      such Escrow Shares, free and clear of any pledges, liens, claims and
      encumbrances.

     

    (ii)  The
      performance of this Agreement and compliance with the provisions hereof will
      not
      violate any provision of any law applicable to the Principal Stockholder and
      will not conflict with or result in any breach of any of the terms, conditions
      or provisions of, or constitute a default under, or result in the creation
      or
      imposition of any lien, charge or encumbrance upon, any of the properties or
      assets of the Principal Stockholder pursuant to the terms of the certificate
      of
      incorporation or by-laws of the Company or any indenture, mortgage, deed of
      trust or other agreement or instrument binding upon the Principal Stockholder
      or
      affecting such Escrow Shares. No notice to, filing with, or authorization,
      registration, consent or approval of any governmental authority or other person
      is necessary for the execution, delivery or performance of this Agreement or
      the
      consummation of the transactions contemplated hereby by the Principal
      Stockholder.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    

    ARTICLE
      III

    COVENANTS

    

    3.1  If
      any
      Escrow Shares are distributed to the Purchasers hereunder, then the Company
      shall use commercially reasonable efforts to file a registration statement
      relating to the resale by the Purchasers of the Escrow Shares so distributed
      within 30 days following the date that the Escrow Agent is obligated hereunder
      to deliver any such Escrow Shares to the Purchasers and the Company shall
      thereafter use commercially reasonable efforts to cause such registration
      statement to become effective. The Purchasers shall provide such information
      to
      the Company as the Company may reasonably request in order to prepare such
      registration statement, including, without limitation, delivery to the Company
      of selling stockholder questionnaires. The Company shall cause such registration
      statement to remain effective until each Purchaser has sold any Escrow Shares
      received by it thereunder or until each Purchaser is permitted to resell all
      of
      the Escrow Shares received hereunder at one time pursuant to Rule 144(k) of
      the
      Securities Act of 1933, as amended.

     

    

    ARTICLE
      IV

    MISCELLANEOUS

    

    4.1  [Intentionally
      Omitted].

     

    4.2  No
      waiver
      or any breach of any covenant or provision herein contained shall be deemed
      a
      waiver of any preceding or succeeding breach thereof, or of any other covenant
      or provision herein contained. No extension of time for performance of any
      obligation or act shall be deemed an extension of the time for performance
      of
      any other obligation or act.

     

    4.3  All
      notices, communications and instructions required or desired to be given under
      this Agreement must be in writing and shall be deemed to be duly given if sent
      by registered or certified mail, return receipt requested, or overnight courier
      to the following addresses: 

     

    If
      to
      Escrow Agent: Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Attention:
      Christopher S. Auguste, Esq.

    Tel
      No.:
      (212) 715-9100

    Fax
      No.:
      (212) 715-8000

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    If
      to the
      Company or the Principal Stockholder: 

    

    Jpak
      Group, Inc.

    c/o
      Qingdao Renmin Printing Co., Ltd.

    No.
      15,
      Xinghua Road

    Qingdao,
      Shandong Province

    Postal
      Code 266401

    P.R.
      China

    Attention:
      Mr. Yijun Wang

    Tel.
      No.:
      (532) 8463 0577

    Fax
      No.:
      (532) 8463 0586

    

    
      
        With
          a
          copy
          to:                   
Lowenstein
          Sandler PC

      

    

    65
      Livingston Avenue

    Roseland,
      New Jersey 07086

    Attention:
      Steven M. Skolnick, Esq.

    Tel
      No.:
      (973) 597-2500

    Fax
      No.:
      (973) 597-2400

    

    If
      to the
      Purchasers:        
Vision
      Opportunity Master Fund, Ltd.

    20
      W.
      55th
      Street,
      5th
      Floor

    New
      York,
      New York 10019

    Attention:
      Yiting Liu

    Tel.
      No.:
      (212) 849-8238

    Fax
      No.:
      (212) 867-1416

    

    QVT
      Fund
      LP

    c/o
      QVT
      Financial LP

    1177
      Avenue of the Americas

    9th
      Floor

    New
      York,
      New York 10036

    Attention:
      Yi Cen

    Tel.
      No.:
      (212) 705-8800

    Fax
      No.:
      (212) 705-8820

    

    Quintessence
      Fund L.P.

    c/o
      QVT
      Financial LP

    1177
      Avenue of the Americas

    9th
      Floor

    New
      York,
      New York 10036

    Attention:
      Yi Cen

    Tel.
      No.:
      (212) 705-8800

    Fax
      No.:
      (212) 705-8820

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    or
      to
      such other address and to the attention of such other person as any of the
      above
      may have furnished to the other parties in writing and delivered in accordance
      with the provisions set forth above. 

    

    4.4  This
      Escrow Agreement shall be binding upon and shall inure to the benefit of the
      permitted successors and permitted assigns of the parties hereto.

     

    4.5  This
      Escrow Agreement is the final expression of, and contains the entire agreement
      between, the parties with respect to the subject matter hereof and supersedes
      all prior understandings with respect thereto. This Escrow Agreement may not
      be
      modified, changed, supplemented or terminated, nor may any obligations hereunder
      be waived, except by written instrument signed by the parties to be charged
      or
      by its agent duly authorized in writing or as otherwise expressly permitted
      herein.

     

    4.6  Whenever
      required by the context of this Escrow Agreement, the singular shall include
      the
      plural and masculine shall include the feminine. This Escrow Agreement shall
      not
      be construed as if it had been prepared by one of the parties, but rather as
      if
      both parties had prepared the same. Unless otherwise indicated, all references
      to Articles are to this Escrow Agreement.

     

    4.7  The
      parties hereto expressly agree that this Escrow Agreement shall be governed
      by,
      interpreted under and construed and enforced in accordance with the laws of
      the
      State of New York, without regard to conflicts of law principles that would
      result in the application of the substantive laws of another jurisdiction.
      Any
      action to enforce, arising out of, or relating in any way to, any provisions
      of
      this Escrow Agreement shall only be brought in a state or Federal court sitting
      in New York City, Borough of Manhattan.

     

    4.8  The
      Escrow Agent’s duties hereunder may be altered, amended, modified or revoked
      only by a writing signed by the Company, the Principal Stockholders, the
      Purchasers and the Escrow Agent.

     

    4.9  The
      Escrow Agent shall be obligated only for the performance of such duties as
      are
      specifically set forth herein and may rely and shall be protected in relying
      or
      refraining from acting on any instrument reasonably believed by the Escrow
      Agent
      to be genuine and to have been signed or presented by the proper party or
      parties. The Escrow Agent shall not be personally liable for any act the Escrow
      Agent may do or omit to do hereunder as the Escrow Agent while acting in good
      faith and in the absence of gross negligence, fraud and willful misconduct,
      and
      any act done or omitted by the Escrow Agent pursuant to the advice of the Escrow
      Agent’s attorneys-at-law shall be conclusive evidence of such good faith, in the
      absence of gross negligence, fraud and willful misconduct.

     

    4.10  The
      Escrow Agent is hereby expressly authorized to disregard any and all warnings
      given by any of the parties hereto or by any other person or corporation,
      excepting only orders or process of courts of law and is hereby expressly
      authorized to comply with and obey orders, judgments or decrees of any court. In
      case the Escrow Agent obeys or complies with any such order, judgment or decree,
      the Escrow Agent shall not be liable to any of the parties hereto or to any
      other person, firm or corporation by reason of such decree being subsequently
      reversed, modified, annulled, set aside, vacated or found to have been entered
      without jurisdiction.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    4.11  The
      Escrow Agent shall not be liable in any respect on account of the identity,
      authorization or rights of the parties executing or delivering or purporting
      to
      execute or deliver any documents or papers deposited or called for thereunder
      in
      the absence of gross negligence, fraud and willful misconduct.

     

    4.12  The
      Escrow Agent shall be entitled to employ such legal counsel and other experts
      as
      the Escrow Agent may deem necessary properly to advise the Escrow Agent in
      connection with the Escrow Agent’s duties hereunder, may rely upon the advice of
      such counsel, and may pay such counsel reasonable compensation therefor which
      shall be paid by the Escrow Agent. The
      Escrow Agent has acted as legal counsel for one of the Purchasers and may
      continue to act as legal counsel for such Purchaser from time to time,
      notwithstanding its duties as the Escrow Agent hereunder. The Company and the
      Purchasers consent to the Escrow Agent in such capacity as legal counsel for
      one
      of the Purchasers and waive any claim that such representation represents a
      conflict of interest on the part of the Escrow Agent. The Company and the
      Purchasers understand that the Escrow Agent is relying explicitly on the
      foregoing provision in entering into this Escrow
      Agreement.

     

    4.13  The
      Escrow Agent’s responsibilities as escrow agent hereunder shall terminate if the
      Escrow Agent shall resign by giving written notice to the Company and the
      Purchasers. In the event of any such resignation, the Purchasers and the Company
      shall appoint a successor Escrow Agent and the Escrow Agent shall deliver to
      such successor Escrow Agent any Escrow Shares and other documents held by the
      Escrow Agent. In addition, the Escrow Agent shall resign and be discharged
      from
      its duties as escrow agent hereunder if so requested in writing at any time
      by
      the Company and the Purchasers, jointly, provided,
      however,
      that
      such resignation shall become effective only upon acceptance of appointment
      by a
      successor escrow agent as provided above.

     

    4.14  If
      the
      Escrow Agent reasonably requires other or further instruments in connection
      with
      this Escrow Agreement or obligations in respect hereto, the necessary parties
      hereto shall join in furnishing such instruments.

     

    4.15  It
      is
      understood and agreed that should any dispute arise with respect to the delivery
      and/or ownership or right of possession of the documents or the Escrow Shares
      held by the Escrow Agent hereunder, the Escrow Agent is authorized and directed
      in the Escrow Agent’s sole discretion (1) to retain in the Escrow Agent’s
      possession without liability to anyone all or any part of said documents or
      the
      Escrow Shares until such disputes shall have been settled either by mutual
      written agreement of the parties concerned by a final order, decree or judgment
      or a court of competent jurisdiction after the time for appeal has expired
      and
      no appeal has been perfected, but the Escrow Agent shall be under no duty
      whatsoever to institute or defend any such proceedings or (2) to deliver the
      Escrow Shares and any other property and documents held by the Escrow Agent
      hereunder to a state or Federal court having competent subject matter
      jurisdiction and located in the City of New York, Borough of Manhattan, in
      accordance with the applicable procedure therefor.

     

    4.16  The
      Company and each Purchaser agree jointly and severally to indemnify and hold
      harmless the Escrow Agent and its partners, employees, agents and
      representatives from any and all claims, liabilities, costs or expenses in
      any
      way arising from or relating to the duties or performance of the Escrow Agent
      hereunder or the transactions contemplated hereby other than any such claim,
      liability, cost or expense to the extent the same shall have been determined
      by
      final, unappealable judgment of a court of competent jurisdiction to have
      resulted from the gross negligence, fraud or willful misconduct of the Escrow
      Agent.

     

    [Signature
      Page Follows]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    [SIGNATURE
      PAGE TO SECURITIES ESCROW AGREEMENT]

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of this
      ___
      day of August, 2007.

     

    

     

    
      	
              JPAK
                GROUP, INC.

               

               

              By:__________________________________

              Name:
                

              Title:
                

               

              PRINCIPAL
                STOCKHOLDERS:

               

              JOYRICH
                GROUP LIMITED

               

               

              By:____________________________________

              Name:
                

              Title:
                

               

              FABREGAS
                GROUP LIMITED

               

               

              By:____________________________________

              Name:
                

              Title:
                

               

              STATEPRO
                INVESTMENTS LTD.

               

               

              By:____________________________________

              Name:
                

              Title:

               

              ESCROW
                AGENT:

               

              KRAMER
                LEVIN NAFTALIS & FRANKEL LLP

               

              By:____________________________________

              Name:

              Title:

            	
              PURCHASERS:

               

              VISION
                OPPORTUNITY MASTER FUND, LTD.

               

               

              By:_________________________________

              Name:

                 
Title:

               

              QVT
                FUND LP,

              By
                its general partner, QVT Associates GP LLC

               

               

              By:_________________________________

              Name:

                 
Title:

               

              By:_________________________________

              Name:

                 
Title:

               

              QUINTESSENCE
                FUND, L.P.,

              By
                its general partner, QVT Associates GP LLC

               

               

              By:_________________________________

              Name:

                 
Title:

               

              By:_________________________________

              Name:

                 
Title:

               

               

               

            

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    

        

    

    
      	
               Schedule
                A

            
	Name of Principal
              Stockholder: 	
              Number
                of Escrow Shares: 

            
	 	 
	Joyrich Group Limited  	
              5,738,400

            
	Fabregas Group Limited  	
              1,065,600  

            
	Statepro Investments
              Ltd.  	
              396,000Unassociated Document

     

    

    

    LOCK-UP
      AGREEMENT

    

    THIS
      LOCK-UP AGREEMENT (this "Agreement")
      is
      dated as of August 9, 2007 by and among Jpak Group, Inc., a Nevada corporation
      (f/k/a Rx Staffing, Inc., the "Company"),
      and
      the shareholders of the Company listed on Schedule
      A
      attached
      hereto (collectively, the "Shareholders").

    

    WHEREAS,
      in connection with the issuance by the Company of Series A Convertible Preferred
      Stock, par value $0.001 per share (the “Preferred
      Shares”)
      and
      Warrants to certain investors (the “Investors”)
      upon
      conversion of outstanding Notes held by such Investors, the Shareholders have
      agreed not to sell any shares of the Company’s common stock, $0.001 par value
      per share (the "Common
      Stock"),
      that
      such Shareholders presently own or may acquire after the date hereof, except
      in
      accordance with the terms and conditions set forth herein. 

    

    NOW,
      THEREFORE, in consideration of the covenants and conditions hereinafter
      contained, the parties hereto agree as follows:

    

    1. Restriction
      on Transfer; Term.
      

    

    (a)
      The
      Shareholders hereby agree with the Company that the Shareholders and their
      affiliates, including, without limitation, members of such Shareholder’s
      immediate family, will not offer, sell, contract to sell, assign, transfer,
      hypothecate, pledge or grant a security interest in, or otherwise dispose of,
      or
      enter into any transaction which is designed to, or might reasonably be expected
      to, result in the disposition of (whether by actual disposition or effective
      economic disposition due to cash settlement or otherwise by the Company or
      any
      affiliate of the Company or any person in privity with the Company or any
      affiliate of the Company), directly or indirectly, any of the shares of Common
      Stock from the period commencing on the Closing Date and expiring on the date
      that is six (6) months following the effective date of the registration
      statement filed by the Company with the Securities and Exchange Commission
      providing for the resale of all of the shares of Common Stock issuable upon
      conversion of the Preferred Shares and all of the shares of Common Stock
      issuable upon exercise of the Series A Warrants and the Series B Warrants (the
      “Period”);
      provided,
      however,
      that no
      Shareholder shall, during the twelve (12) months following the Period, sell
      more
      than one-twelfth (1/12) of their total holdings of Common Stock during any
      one
      (1) month period. 

    

    (b)
      Notwithstanding the foregoing, the restrictions set forth in Section 1(a) above
      shall not apply to (a) transfers (i) as a bona fide gift or gifts, provided
      that
      the donee or donees thereof agree to be bound in writing by the restrictions
      set
      forth herein, (ii) to any trust for the direct or indirect benefit of the
      undersigned or the immediate family of the undersigned, provided that the
      trustee of the trust agrees to be bound in writing by the restrictions set
      forth
      herein, and provided further that any such transfer shall not involve a
      disposition for value, (iii) with the prior written consent of the Investors
      holding a majority of the Preferred Shares outstanding at such time, (iv)
      effected pursuant to any exchange of “underwater” options with the Company or
      (v) to an affiliate or to any wholly owned subsidiary of a Shareholder provided
      that such affiliate or subsidiary agrees to be bound in writing by the
      restrictions set forth herein, and provided further that any such transfer
      shall
      not involve a disposition for value, or (b) the acquisition or exercise of
      any
      stock option issued pursuant to the Company’s stock option plans, including any
      exercise effected by the delivery of Common Stock of the Company held by the
      undersigned. For purposes of this Agreement, “immediate family” shall mean any
      relationship by blood, marriage or adoption, not more remote than first cousin.
      None of the restrictions set forth in this Agreement shall apply to Common
      Stock
      acquired in open market transactions.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    2. Ownership. During
      the Period, the Shareholders shall retain all rights of ownership in the Common
      Stock, including, without limitation, voting rights and the right to receive
      any
      dividends, if any, that may be declared in respect thereof.

    

    3. Company
      and Transfer Agent.
      The
      Company is hereby authorized to disclose the existence of this Agreement to
      its
      transfer agent. The Company and its transfer agent are hereby authorized to
      decline to make any transfer of the Common Stock if such transfer would
      constitute a violation or breach of this Agreement. 

    

    4. Notices.
      All
      notices, demands, consents, requests, instructions and other communications
      to
      be given or delivered or permitted under or by reason of the provisions of
      this
      Agreement or in connection with the transactions contemplated hereby shall
      be in
      writing and shall
      be
      deemed to be delivered and received by the intended recipient as follows: (i)
      if
personally
      delivered, on the business day of such delivery (as evidenced by the receipt
      of
      the personal delivery service), (ii) if mailed certified or registered mail
      return receipt requested, four (4) business days after being mailed, (iii)
      if
      delivered by overnight courier (with all charges having been prepaid), on the
      business day of such delivery (as evidenced by the receipt of the overnight
      courier service of recognized standing), or (iv) if delivered by facsimile
      transmission, on the business day of such delivery if sent by 6:00 p.m. in
      the
      time zone of the recipient, or if sent after that time, on the next succeeding
      business day (as evidenced by the printed confirmation of delivery generated
      by
      the sending party's telecopier machine). If any notice, demand, consent,
      request, instruction or other communication cannot be delivered because of
      a
      changed address of which no notice was given (in accordance with this Section
      4), or the refusal to accept same, the notice, demand, consent, request,
      instruction or other communication shall be deemed received on the second
      business day the notice is sent (as evidenced by a sworn affidavit of the
      sender). All such notices, demands, consents, requests, instructions and other
      communications will be sent to the following addresses or facsimile numbers
      as
      applicable.
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    If
      to the
      Company:

     

    Jpak
      Group, Inc.

    c/o
      Qingdao Renmin Printing Co., Ltd.

    No.
      15,
      Xinghua Road

    Qingdao,
      Shandong Province

    Postal
      Code 266401

    P.R.
      China

    Attention:
      Mr. Yijun Wang

    Tel.
      No.:
      (532) 8463 0577

    Fax
      No.:
      (532) 8463 0586

    

    With
      copies to: 

     

    Lowenstein
      Sandler PC

    65
      Livingston Avenue

    Roseland,
      New Jersey 07086

    Attention:
      Steven M. Skolnick

    Tel
      No.:
      (973) 597-2500

    Fax
      No.:
      (973) 597-2400

    

    and
      to:

    

    Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas 

    New
      York,
      New York 10036

    Attention:
      Christopher S. Auguste

    Tel
      No.:
      (212) 715-9100

    Fax
      No.:
      (212) 715-8000

    

    If
      to any
      of the Shareholders, addressed to such Shareholder at:

     

    c/o
      Qingdao Renmin Printing Co., Ltd.

    No.
      15,
      Xinghua Road

    Qingdao,
      Shandong Province

    Postal
      Code 266401

    P.R.
      China

    Attention:
      Mr. Yijun Wang

    Tel.
      No.:
      (532) 8463 0577

    Fax
      No.:
      (532) 8463 0586

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    With
      copies to: 

     

    Lowenstein
      Sandler PC

    65
      Livingston Avenue

    Roseland,
      New Jersey 07086

    Attention:
      Steven M. Skolnick

    Tel
      No.:
      (973) 597-2500

    Fax
      No.:
      (973) 597-2400

    

    or
      to
      such other address as any party may specify by notice given to the other party
      in accordance with this Section 4.

    

    5. Entire
      Agreement.
      This
      Agreement
      contain
      the entire understanding and agreement of the parties relating to the subject
      matter hereof and supersedes all prior and/or contemporaneous understandings
      and
      agreements of any kind and nature (whether written or oral) among the parties
      with respect to such subject matter, all of which are merged
      herein.

    

    6. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to agreements made and to be performed in that
      state, without regard to any of its principles of conflicts
      of laws or other laws which would result in the application of the laws of
      another jurisdiction. This Agreement shall be construed and interpreted without
      regard to any presumption against the party causing this Agreement to be
drafted.
      

    

    7. Waiver
      of Jury Trial.
      EACH OF
      THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES THE RIGHT TO A TRIAL
      BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES
      UNCONDITIONALLY AND IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION
      OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY AND THE
      FEDERAL DISTRICT COURT FOR THE SOUTHERN DISTRICT
      OF NEW YORK WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING
      OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY,
      AND EACH OF THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY
      OBJECTION TO VENUE IN NEW YORK COUNTY OR SUCH DISTRICT, AND AGREES THAT SERVICE
      OF ANY SUMMONS, COMPLAINT, NOTICE OR OTHER PROCESS RELATING TO SUCH SUIT, ACTION
      OR OTHER PROCEEDING MAY BE EFFECTED IN THE MANNER PROVIDED IN SECTION 4.

    

    8. Severability.
      The
      parties agree that if any provision of this Agreement be held to be invalid,
      illegal or unenforceable in any jurisdiction, that holding shall be effective
      only to the extent of such invalidity, illegally or unenforceability without
      invalidating or rendering illegal or unenforceable the
      remaining provisions hereof, and any such invalidity, illegally or
      unenforceability in any jurisdiction
      shall not invalidate or render unenforceable such provision in any other
      jurisdiction. It is the intent of the parties that this Agreement be fully
      enforced to the fullest extent permitted by applicable law.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    9. Binding
      Effect; Assignment.
      This
      Agreement and the rights and obligations hereunder may not be assigned by any
      party hereto without the prior written consent of the other parties hereby.
      This
Agreement
      shall be binding upon and shall inure to the benefit of the parties hereto
      and
      their respective successors and permitted assigns.

    

    10. Headings.
      The
      section headings contained in this Agreement (including, without limitation,
      section headings and headings in the exhibits and schedules) are inserted for
      reference purposes only and shall not affect in any way the meaning,
      construction or interpretation of this Agreement. Any reference to the
      masculine, feminine, or neuter gender shall be a reference to such other gender
      as is appropriate. References to the singular shall include the plural and
      vice
      versa.

    11. Counterparts.
      This
      Agreement may be executed in two or more counterparts, and by the different
      parties hereto in separate counterparts, each of which when executed shall
      be
      deemed to be an original, and all of which, when taken together,
      shall constitute
      one and the same document. This Agreement shall become effective when one or
      more counterparts, taken together, shall have been executed and delivered by
      all
      of the parties.

    

    12. Third
      Party Beneficiaries.
      Each of
      the Shareholders and the Company hereby acknowledges that the Investors are
      third party beneficiaries of this Agreement and this Agreement may not be
      modified or changed without the prior written consent of the Investors.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

    
      	 	
              JPAK
                GROUP, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
               
                

            
	 	
               

            	
              Name:
                

            
	 	
               

            	
              Title:
                

            
	 	
               

            	 
	 	 	 
	 	
              SHAREHOLDER:

            
	 	 	 
	 	 	 
	 	
              By:

            	
               
                

            
	 	
               

            	
              Name:
                

            
	 	
               

            	
              Title:
                

            

    

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
      A

    

    

    Joyrich
      Group Limited

    Fabregas
      Group Limited

    Statepro
      Investments Ltd.

    Raytech
      Investments Limited

    Capital
      American Markets Limited

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