Document:

Unassociated Document

     

    JOINDER
      AGREEMENT

     

    This
      Joinder Agreement (the “Joinder
      Agreement”)
      is
      made as of August 9, 2007 by the undersigned, Jpak Group, Inc., a Nevada
      corporation, and delivered pursuant to Section 8.10 of the Note Purchase
      Agreement, dated as of May 17, 2007 (the “Note
      Purchase Agreement”),
      by
      and among Jpak
      Group Co., Ltd., a company organized under the laws of the Cayman Islands (the
      “Company”),
      Grand
      International Industrial Limited, a company organized under the laws of Hong
      Kong (“Grand
      International”),
      and
      each investor identified on the signature pages thereto (individually, an
“Investor”
and,
      collectively, the “Investors”),
      and is
      made in consideration of and pursuant to such Note Purchase Agreement. All
      capitalized terms used but not defined herein shall have the meanings ascribed
      thereto in the Note Purchase Agreement.

     

    In
      consideration of the terms and conditions in the Note Purchase Agreement, the
      undersigned, by executing and delivering this Joinder Agreement, hereby agrees
      that by executing this Joinder Agreement it (i) is a party to the Note Purchase
      Agreement, (ii) assumes all of the obligations of the Company set forth in
      the
      Note Purchase Agreement and (iii) agrees to be bound by and to observe all
      of
      the terms and conditions of the Note Purchase Agreement. Reference is hereby
      made to the Note Purchase Agreement for the precise terms of the obligations
      of
      Company provided therein. Without in any way limiting the foregoing, the
      undersigned hereby represents and warrants to the Investors that each of the
      representations and warranties set forth in Section 4 of the Note Purchase
      Agreement are, as of the date hereof, true and correct as to the undersigned
      (unless the context otherwise provides).

     

    The
      undersigned acknowledges receiving and reviewing a copy of the Note Purchase
      Agreement and authorizes the parties to the Note Purchase Agreement to attach
      this counterpart signature page to the Note Purchase Agreement.

     

    In
      addition to the terms and conditions set forth in the Note Purchase Agreement,
      the undersigned hereby further agrees as follows:

     

    1. Representations
      and Warranties.
      The
      undersigned hereby represents and warrants as follows:

     

    1.1 Authorization;
      Enforcement.
      The
      undersigned has the requisite corporate power and authority to enter into,
      where
      applicable, and perform (i) this Joinder Agreement, (ii) the Registration Rights
      Agreement in the form attached hereto as Exhibit
      A,
      (iii)
      the Lock-Up Agreement in the form attached hereto as Exhibit
      B,
      (iv)
      the Securities Escrow Agreement in the form attached hereto as Exhibit
      C,
      (v) the
      Certificate of Designation of the Relative Rights and Preferences of the Series
      A Convertible Preferred Stock in the form attached hereto as Exhibit
      D
      (the
“Series
      A Designation”),
      (vi)
      the Certificate of Designation of the Relative Rights and Preferences of the
      Series B Convertible Preferred Stock to be issued upon exercise of the Series
      J
      Warrant in the form attached hereto as Exhibit
      E
      (the
“Series
      B Designation”),
      (vii)
      the Series A Warrant in the form attached hereto as Exhibit
      F,
      (viii)
      the Series B Warrant in the form attached hereto as Exhibit
      G,
      (ix)
      the Series C Warrant to be issued upon exercise of the Series J Warrant in
      the
      form attached hereto as Exhibit
      H,
      (x) the
      Series D Warrant to be issued upon exercise of the Series J Warrant in the
      form
      attached hereto as Exhibit
      I
      and (xi)
      the Series J Warrant in the form attached hereto as Exhibit
      J
      (collectively, items (vii), (viii) and (xi) shall be referred to as the
“Warrants”,
      and
      items (i), (ii), (iii), (iv), (v), (vii), (viii) and (xi) shall be referred
      to
      as the “Transaction
      Documents”)
      and to
      issue (a) the shares
      of
      Series A Convertible Preferred Stock (and the shares of common stock issuable
      upon conversion thereof), (b) the shares of Series B Convertible Preferred
      Stock
      (and the shares of common stock issuable upon conversion thereof) upon
      exercise of the Series J Warrant,
      (c) the
      Series A Warrant (and
      the
      securities issuable upon exercise thereof) and
      the
      Series B Warrant (and
      the
      securities issuable upon exercise thereof), and (d) the Series C Warrant (and
      the securities issuable upon exercise thereof) upon
      exercise of the Series J Warrant and the Series
      D
      Warrant (and the securities issuable upon exercise thereof) upon
      exercise of the Series J Warrant, all in
      accordance with the terms of the Note Purchase Agreement. The execution,
      delivery and performance of the Transaction Documents by the undersigned and
      the
      consummation by it of the transactions contemplated hereby and thereby have
      been
      duly and validly authorized by all necessary corporate action, and no further
      consent or authorization of the undersigned or its Board of Directors or
      stockholders is required. This Joinder Agreement has been duly executed and
      delivered by the undersigned. The other Transaction Documents will have been
      duly executed and delivered by the undersigned at the closing of the
      transactions contemplated by the Transaction Documents (the “Closing”).
      Each
      of the Transaction Documents constitutes, or shall constitute when executed
      and
      delivered, a valid and binding obligation of the undersigned enforceable against
      the undersigned in accordance with its terms, except as such enforceability
      may
      be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
      liquidation, conservatorship, receivership or similar laws relating to, or
      affecting generally the enforcement of, creditor’s rights and remedies or by
      other equitable principles of general application. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    1.2 Capitalization.
      The
      authorized capital stock of the undersigned and the shares thereof currently
      issued and outstanding as of the date hereof are set forth on Schedule
      1.2
      hereto.
      All of the outstanding shares of the Common Stock and the Series A Convertible
      Preferred Stock have been duly and validly authorized. Except as set forth
      on
Schedule
      1.2
      hereto,
      no shares of Common Stock are entitled to preemptive rights or registration
      rights and there are no outstanding options, warrants, scrip, rights to
      subscribe to, call or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, any shares of capital stock of the
      undersigned. Except as provided in the Transaction Documents, there are no
      contracts, commitments, understandings, or arrangements by which the undersigned
      is or may become bound to issue additional shares of the capital stock of the
      undersigned or options, securities or rights convertible into shares of capital
      stock of the undersigned. Except as set forth on Schedule
      1.2
      or
      otherwise provided in the Transaction Documents, the undersigned is not a party
      to any agreement granting registration or anti-dilution rights to any person
      with respect to any of its equity or debt securities. Except as provided in
      the
      Transaction Documents, the undersigned is not a party to, and it has no
      knowledge of, any agreement restricting the voting or transfer of any shares
      of
      the capital stock of the undersigned. The undersigned has furnished or made
      available to the Investors true and correct copies of the undersigned’s Articles
      of Incorporation as in effect on the date hereof (the “Articles”),
      and
      the undersigned’s Bylaws as in effect on the date hereof (the “Bylaws”).
      For
      the purposes of this Joinder Agreement, “Material
      Adverse Effect”
means
      any material adverse effect on the business, operations, properties, prospects,
      or financial condition of the undersigned and its subsidiaries and/or any
      condition, circumstance, or situation that would prohibit or otherwise
      materially interfere with the ability of the undersigned to perform any of
      its
      obligations under this Joinder Agreement in any material respect.

    
      
        
        

      

      
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    1.3 Issuance
      of Shares.
      The
      Series A Convertible Preferred Stock, the Series A Warrant, the Series B Warrant
      and the Series J Warrant to be issued at the Closing have been duly authorized
      by all necessary corporate action and the Series A Convertible Preferred Stock,
      when paid for or issued in accordance with the terms hereof, and the Series
      B
      Convertible Preferred Stock (together with the Series A Convertible Preferred
      Stock, the “Preferred
      Shares”)
      when
      issued upon exercise of the Series J Warrant, shall be validly issued and
      outstanding, fully paid and nonassessable and entitled to the rights and
      preferences set forth in the Series A Designation and Series B Designation,
      as
      applicable. When the shares of Common Stock issuable upon conversion of the
      Preferred Shares and upon exercise of the Series A Warrants, Series B Warrants,
      Series C Warrants and Series D Warrants are issued in accordance with the terms
      of the Series A Designation and Series B Designation, as applicable, and the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D Warrants,
      respectively, such shares will be duly authorized by all necessary corporate
      action and validly issued and outstanding, fully paid and nonassessable, and
      the
      holders shall be entitled to all rights accorded to a holders of such shares.
      

     

    1.4 No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the
      undersigned, the performance by the undersigned of its obligations under the
      Series
      A
      Designation and Series B Designation, as applicable,
      and the
      consummation by the undersigned of the transactions contemplated herein and
      therein do not and will not (i) violate any provision of the Articles or Bylaws,
      (ii) conflict with, or constitute a default (or an event which with notice
      or
      lapse of time or both would become a default) under, or give to others any
      rights of termination, amendment, acceleration or cancellation of, any
      agreement, mortgage, deed of trust, indenture, note, bond, license, lease
      agreement, instrument or obligation to which the undersigned is a party or
      by
      which it or its properties or assets are bound, (iii) create or impose a lien,
      mortgage, security interest, charge or encumbrance of any nature on any property
      of the undersigned under any agreement or any commitment to which the
      undersigned is a party or by which the undersigned is bound or by which any
      of
      its respective properties or assets are bound, or (iv) result in a violation
      of
      any federal, state, local or foreign statute, rule, regulation, order, judgment
      or decree (including Federal and state securities laws and regulations)
      applicable to the undersigned or any of its subsidiaries or by which any
      property or asset of the undersigned or any of its subsidiaries are bound or
      affected, except, in all cases other than violations pursuant to clauses (i)
      through (iv) above, for such conflicts, defaults, terminations, amendments,
      accelerations, cancellations and violations as would not, individually or in
      the
      aggregate, have a Material Adverse Effect. The business of the undersigned
      and
      its subsidiaries is not being conducted in violation of any laws, ordinances
      or
      regulations of any governmental entity, except for possible violations which
      singularly or in the aggregate do not and will not have a Material Adverse
      Effect. The undersigned is not required under Federal, state or local law,
      rule
      or regulation to obtain any consent, authorization or order of, or make any
      filing or registration with, any court or governmental agency in order for
      it to
      execute, deliver or perform any of its obligations under the Transaction
      Documents, or issue and sell the Preferred Shares, the Warrants, and the
      securities issuable upon conversion or exercise thereof, in accordance with
      the
      terms hereof or thereof (other than any filings which may be required to be
      made
      by the undersigned with the Securities and Exchange Commission or state
      securities administrators subsequent to the Closing, any registration statement
      which may be filed pursuant to the Transaction Documents, and the Series
      A
      Designation and Series B Designation);
      provided
      that,
      for purposes of the representation made in this sentence, the undersigned is
      assuming and relying upon the accuracy of the relevant representations and
      agreements of the Investors in the Note Purchase Agreement.

    
      
        
        

      

      
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    1.5 Investment
      Company Act Status.
      The
      undersigned is not, and as a result of and immediately upon the Closing will
      not
      be, an “investment company” or a company “controlled” by an “investment
      company,” within the meaning of the Investment Company Act of 1940, as
      amended.

     

    1.6 Dilutive
      Effect.
      The
      undersigned understands and acknowledges that its obligation to issue shares
      of
      Common Stock upon conversion of the Series A Convertible Preferred Stock and
      Series B Convertible Preferred Stock (assuming the Series J Warrant is exercised
      in accordance with its terms) in accordance with the Transaction Documents
      and
      its obligation to issue the shares of Common Stock upon the exercise of
the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D
      Warrants
      in
      accordance with this Joinder Agreement and the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D Warrants,
      as applicable,
      is, in
      each case, absolute and unconditional regardless of the dilutive effect that
      such issuance may have on the ownership interest of other stockholders of the
      undersigned.

     

    1.7 Sarbanes-Oxley
      Act.
      The
      undersigned is in compliance with the provisions of the Sarbanes-Oxley Act
      of
      2002 (the “Sarbanes-Oxley
      Act”),
      and
      the rules and regulations promulgated thereunder, that are applicable to the
      undersigned, and intends to comply with other applicable provisions of the
      Sarbanes-Oxley Act, and the rules and regulations promulgated thereunder, upon
      the effectiveness of such provisions.

     

    1.8 Books
      and Records; Internal Accounting Controls.
      The
      books and records of the undersigned and its subsidiaries accurately reflect
      in
      all material respects the information relating to the business of the
      undersigned and its subsidiaries, the location and collection of their assets,
      and the nature of all transactions giving rise to the obligations or accounts
      receivable of the undersigned or any subsidiary. The undersigned and each of
      its
      subsidiaries maintain a system of internal accounting controls sufficient,
      in
      the judgment of the undersigned, to provide reasonable assurance that (i)
      transactions are executed in accordance with management’s general or specific
      authorizations, (ii) transactions are recorded as necessary to permit
      preparation of financial statements in conformity with U.S. generally accepted
      accounting principles consistently applied (“GAAP”)and
      to
      maintain asset accountability, (iii) access to assets is permitted only in
      accordance with management’s general or specific authorization and (iv) the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals and appropriate actions is taken with respect to any
      differences.

     

    1.9 Transactions
      with Affiliates.
      Except
      as set forth on Schedule
      1.9
      hereto,
      there are no loans, leases, agreements, contracts, royalty agreements,
      management contracts or arrangements or other continuing transactions between
      (a) the undersigned or any subsidiary on the one hand, and (b) on the other
      hand, any officer, employee, consultant or director of the undersigned, or
      any
      of its subsidiaries, or any person owning any capital stock of the undersigned
      or any subsidiary or any member of the immediate family of such officer,
      employee, consultant, director or stockholder or any corporation or other entity
      controlled by such officer, employee, consultant, director or stockholder,
      or a
      member of the immediate family of such officer, employee, consultant, director
      or stockholder.

    
      
        
        

      

      
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    1.10 Indebtedness.
      Schedule
      1.10
      hereto
      sets forth as of a recent date all outstanding secured and unsecured
      Indebtedness of the undersigned or any subsidiary, or for which the undersigned
      or any subsidiary has commitments. For the purposes of this Joinder Agreement,
      “Indebtedness”
shall
      mean (a) any liabilities for borrowed money or amounts owed in excess of
      $100,000 (other than trade accounts payable incurred in the ordinary course
      of
      business), (b) all guaranties, endorsements and other contingent obligations
      in
      respect of Indebtedness of others, whether or not the same are or should be
      reflected in the undersigned’s balance sheet (or the notes thereto), except
      guaranties by endorsement of negotiable instruments for deposit or collection
      or
      similar transactions in the ordinary course of business; and (c) the present
      value of any lease payments in excess of $25,000 due under leases required
      to be
      capitalized in accordance with GAAP. Except as set forth on Schedule
      1.10,
      neither
      the undersigned nor any subsidiary is in default with respect to any
      Indebtedness.

     

    1.11 No
      Undisclosed Liabilities.
      Since
      March 31, 2007, neither the undersigned nor any of its subsidiaries has incurred
      any liabilities, obligations, claims or losses (whether liquidated or
      unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise)
      other than those incurred in the ordinary course of the undersigned's or its
      subsidiaries respective businesses or which, individually or in the aggregate,
      are not reasonably likely to have a Material Adverse Effect. Since March 31,
      2007, none of the undersigned or any of its subsidiaries has participated in
      any
      transaction material to the condition of the undersigned which is outside of
      the
      ordinary course of its business.

     

    2. Covenants.
      The
      undersigned hereby covenants and agrees as follows:

    2.1 Registration
      and Listing.
      The
      undersigned shall cause its Common Stock to be registered under Sections 12(b)
      or 12(g) of the Exchange Act no later than the effective date of the
      Registration Statement (as defined in the Registration Rights Agreement), to
      comply in all respects with its reporting and filing obligations under the
      Exchange Act, to comply with all requirements related to any registration
      statement filed pursuant to the Registration Rights Agreement, and to not take
      any action or file any document (whether or not permitted by the Securities
      Act
      or the rules promulgated thereunder) to terminate or suspend such registration
      or to terminate or suspend its reporting and filing obligations under the
      Exchange Act or Securities Act, except as otherwise permitted in the Transaction
      Documents. Subject to the terms of the Transaction Documents, the undersigned
      further covenants that it will take such further action as the Investors may
      reasonably request, all to the extent required from time to time to enable
      the
      Investors to sell the shares of Common Stock issuable upon conversion of the
      Preferred Shares and exercise of the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D
      Warrants
      without
      registration under the Securities Act within the limitation of the exemptions
      provided by Rule 144 promulgated under the Securities Act. Upon the request
      of
      the Investors, the undersigned shall deliver to the Investors a written
      certification of a duly authorized officer as to whether it has complied with
      such requirements.

    
      
        
        

      

      
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    2.2 Status
      of Dividends.
      The
      undersigned covenants and agrees that (i) no Federal income tax return or claim
      for refund of Federal income tax or other submission to the Internal Revenue
      Service (the “Service”)
      will
      adversely affect the Preferred Shares, any other series of its Preferred Stock,
      or the Common Stock, and no deduction shall operate to jeopardize the
      availability to Investors of the dividends received deduction provided by
      Section 243(a)(1) of the Code or any successor provision, (ii) in no report
      to
      shareholders or to any governmental body having jurisdiction over the
      undersigned or otherwise will it treat the Preferred Shares other than as equity
      capital or the dividends paid thereon other than as dividends paid on equity
      capital unless required to do so by a governmental body having jurisdiction
      over
      the accounts of the undersigned or by a change in generally accepted accounting
      principles required as a result of action by an authoritative accounting
      standards setting body, and (iii) it will take no action which would result
      in
      the dividends paid by the undersigned on the Preferred Shares out of the
      undersigned’s current or accumulated earnings and profits being ineligible for
      the dividends received deduction provided by Section 243(a)(1) of the Code.
      The
      preceding sentence shall not be deemed to prevent the undersigned from
      designating the Preferred Shares as “Convertible Preferred Stock” in its annual
      and quarterly financial statements in accordance with its prior practice
      concerning other series of preferred stock of the undersigned. In the event
      that
      the Investors have reasonable cause to believe that dividends paid by the
      undersigned on the Preferred Shares out of the undersigned’s current or
      accumulated earnings and profits will not be treated as eligible for the
      dividends received deduction provided by Section 243(a)(1) of the Code, or
      any
      successor provision, the undersigned will, at the reasonable request of the
      Investors of 51% of the outstanding Preferred Shares, join with the Investors
      in
      the submission to the IRS of a request for a ruling that dividends paid on
      the
      Preferred Shares will be so eligible for Federal income tax purposes, at the
      Investors expense. In addition, the undersigned will reasonably cooperate with
      the Investors (at Investors’ expense) in any litigation, appeal or other
      proceeding challenging or contesting any ruling, technical advice, finding
      or
      determination that earnings and profits are not eligible for the dividends
      received deduction provided by Section 243(a)(1) of the Code, or any successor
      provision to the extent that the position to be taken in any such litigation,
      appeal, or other proceeding is not contrary to any provision of the Code.
      Notwithstanding the foregoing, nothing herein contained shall be deemed to
      preclude the undersigned from claiming a deduction with respect to such
      dividends if (i) the Code shall hereafter be amended, or final Treasury
      regulations thereunder are issued or modified, to provide that dividends on
      the
      Preferred Shares or Common Stock should not be treated as dividends for Federal
      income tax purposes or that a deduction with respect to all or a portion of
      the
      dividends on the Preferred Shares is allowable for Federal income tax purposes,
      or (ii) in the absence of such an amendment, issuance or modification and after
      a submission of a request for ruling or technical advice, the IRS shall issue
      a
      published ruling or advise that dividends on the Preferred Shares should not
      be
      treated as dividends for Federal income tax purposes. If the IRS specifically
      determines that the Preferred Shares or Common Stock constitute debt, the
      undersigned may file protective claims for refund.

    

    2.3 Transfer
      Agent Instructions.
      The
      undersigned shall issue irrevocable instructions to its transfer agent, and
      any
      subsequent transfer agent, to issue certificates, registered in the name of
      each
      Investor or its respective nominee(s), for the Common Stock issuable on
      conversion of the Preferred Shares and exercise of the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D
      Warrants
      in such
      amounts as specified from time to time by each Investor to the undersigned
      upon
      conversion of the Preferred Shares or exercise of the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D
      Warrants
      in the
      form of Exhibit
      K
      attached
      hereto (the “Irrevocable
      Transfer Agent Instructions”).
      Prior
      to registration of the Common Stock issuable on conversion of the Preferred
      Shares and exercise of the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D
      Warrants
      under
      the Securities Act, all such certificates shall bear the following restrictive
      legend:

    

    THESE
      SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
      OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
      DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
      STATE SECURITIES LAWS OR JPAK GROUP, INC. SHALL HAVE RECEIVED AN OPINION OF
      COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER
      THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
      REQUIRED

    
      
        
        

      

      
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    The
      undersigned warrants that no instruction other than the Irrevocable Transfer
      Agent Instructions referred to in this Section
      2.3
      will be
      given by the undersigned to its transfer agent and that the shares of Common
      Stock issuable on conversion of the Preferred Shares and exercise of
the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D
      Warrants
      shall
      otherwise be freely transferable on the books and records of the undersigned
      as
      and to the extent provided in this Joinder Agreement and the Registration Rights
      Agreement. If an Investor provides the undersigned with an opinion of counsel,
      in a generally acceptable form, to the effect that a public sale, assignment
      or
      transfer of the shares of Common Stock issuable on conversion of the Preferred
      Shares and exercise of the
      Series A Warrants, Series B Warrants, Series C Warrants and Series D
      Warrants
      may be
      made without registration under the Securities Act or the Investor provides
      the
      undersigned with reasonable assurances that such shares can be sold pursuant
      to
      Rule 144 without any restriction as to the number of securities acquired as
      of a
      particular date that can then be immediately sold, the undersigned shall permit
      the transfer, and, in the case of such shares, promptly instruct its transfer
      agent to issue one or more certificates in such name and in such denominations
      as specified by such Investor and without any restrictive legend. The
      undersigned acknowledges that a breach by it of its obligations under this
      Section
      2.3
      will
      cause irreparable harm to the Investors by vitiating the intent and purpose
      of
      the transaction contemplated hereby. Accordingly, the undersigned acknowledges
      that the remedy at law for a breach of its obligations under this Section 2.3
      will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      undersigned of the provisions of this Section
      2.3,
      that
      the Investors shall be entitled, in addition to all other available remedies,
      to
      an order and/or injunction restraining any breach and requiring immediate
      issuance and transfer, without the necessity of showing economic loss and
      without any bond or other security being required.

    

    2.4 Disclosure
      of Material Information.
      The
      undersigned covenants and agrees that neither it nor any other person acting
      on
      its behalf has provided or will provide any Investor or its agents or counsel
      with any information that the undersigned believes constitutes material
      non-public information, unless prior thereto such Investor shall have executed
      a
      written agreement regarding the confidentiality and use of such
      information.  The undersigned understands and confirms that each Investor
      shall be relying on the foregoing representations in effecting transactions
      in
      securities of the undersigned.

    

    2.5 Pledge
      of Securities.
      The
      undersigned acknowledges and agrees that the securities issued pursuant to
      the
      Transaction Documents may be pledged by an Investor in connection with a
bona fide
      margin
      agreement or other loan or financing arrangement that is secured by the Common
      Stock. No Investor effecting a pledge of Common Stock shall be required to
      provide the undersigned with any notice thereof or otherwise make any delivery
      to the undersigned pursuant to this Joinder Agreement or any other Transaction
      Document; provided that an Investor and its pledgee shall be required to comply
      with the provisions of Section 2.3 hereof in order to effect a sale, transfer
      or
      assignment of Common Stock to such pledgee. At the Investor's expense, the
      undersigned hereby agrees to execute and deliver such documentation as a pledgee
      of the Common Stock may reasonably request in connection with a pledge of the
      Common Stock to such pledgee by an Investor.

    
      
        
        

      

      
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    2.6 DTC
      Status.
      No
      later than the date of effectiveness of the Registration Statement (as defined
      in the Registration Rights Agreement), the undersigned shall engage a transfer
      agent that is a participant in, and the undersigned shall cause the Common
      Stock
      to be eligible for transfer pursuant to, the Depository Trust Company Automated
      Securities Transfer Program. 

    

    2.7
       Use
      of
      Proceeds.
      The net
      proceeds from the sale of the Notes shall be used by the undersigned for the
      purposes set forth in the Note Purchase Agreement and not to redeem any Common
      Stock or securities convertible, exercisable or exchangeable into Common Stock
      or to settle any outstanding litigation.

    

    3. Conditions
      Precedent to the Obligation of the Investors.
      The
      obligation of each Investor to acquire the Series A Convertible Preferred Stock,
      the Series A Warrants, the Series B Warrants and the Series J Warrants is
      subject to the satisfaction or waiver, at or before the Closing, of
      each
      of the conditions set forth in the Transaction Documents, including, but not
      limited to, the following (which
      are for
      each Investor’s sole benefit and may be waived by such Investor at any time in
      its sole discretion):

    

    3.1 No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction which prohibits the consummation of any
      of
      the transactions contemplated by this Joinder Agreement or the other Transaction
      Documents.

    

    3.2 No
      Proceedings or Litigation.
      No
      action, suit or proceeding before any arbitrator or any governmental authority
      shall have been commenced, and no investigation by any governmental authority
      shall have been threatened, against the undersigned or any subsidiary, or any
      of
      the officers, directors or affiliates of the undersigned or any subsidiary
      seeking to restrain, prevent or change the transactions contemplated by this
      Joinder Agreement or the other Transaction Documents, or seeking damages in
      connection with such transactions.

    

    3.3 Certificate
      of Designation of Rights and Preferences.
      Prior
      to the Closing, the Series
      A
      Designation shall
      have been filed with the Secretary of State of the State of Nevada.

    

    3.4 Certificates.
      The
      undersigned shall have executed and delivered to the Investors the certificates
      (in such denominations as such Investor shall request) for the Series A
      Convertible Preferred Stock, the Series A Warrants, the Series B Warrants and
      the Series J Warrants being acquired by such Investor at the Closing (in such
      denominations as such Investor shall request).

    

    3.5 Resolutions.
      The
      Board of Directors of the undersigned shall have adopted resolutions consistent
      with Section
      1.1
      hereof
      in a form reasonably acceptable to such Investor (the “Resolutions”).

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    

    3.6 Secretary’s
      Certificate.
      The
      undersigned shall have delivered to such Investor a secretary’s certificate,
      dated as of the Closing, as to (i) the Resolutions, (ii) the Articles, (iii)
      the
      Bylaws, (iv) the Series
      A
      Designation as
      in
      effect at the Closing, and (iv) the authority and incumbency of the officers
      of
      the undersigned executing the Transaction Documents and any other documents
      required to be executed or delivered in connection therewith.

    

    3.7 Officer’s
      Certificate.
      The
      undersigned shall have delivered to the Investors a certificate of an executive
      officer of the undersigned, dated as of the Closing, confirming the accuracy
      of
      the undersigned’s representations, warranties and covenants as of the Closing
      and confirming the compliance by the undersigned with the conditions precedent
      set forth in this Section
      3
      as of
      the Closing.

     

    3.8 Opinion
      of Counsel.
      At the
      Closing, the Investors shall have received an opinion of counsel to the
      undersigned, dated the date of the Closing, in a form reasonably acceptable
      to
      the Investors.

     

    3.9 Material
      Adverse Effect.
      No
      Material Adverse Effect shall have occurred at or before the Closing Date.
      

    

    4. Indemnification.
      

    

    4.1
       Indemnification.
      The
      undersigned agrees to indemnify and hold harmless each Investor and its
      Affiliates and their respective directors, officers, employees and agents from
      and against any and all losses, claims, damages, liabilities and expenses
      (including without limitation reasonable attorney fees and disbursements and
      other expenses incurred in connection with investigating, preparing or defending
      any action, claim or proceeding, pending or threatened and the costs of
      enforcement thereof) (collectively, "Losses")
      to
      which such Person may become subject as a result of any breach of
      representation, warranty, covenant or agreement made by or to be performed
      by it
      under the Transaction Documents, and will reimburse any such Person for all
      such
      amounts as they are incurred by such Person.

    

    4.2 Conduct
      of Indemnification Proceedings.
      Promptly after receipt by any Person (the "Indemnified
      Person")
      of
      notice of any demand, claim or circumstances which would or might give rise
      to a
      claim or the commencement of any action, proceeding or investigation in respect
      of which indemnity may be sought pursuant to Section
      4.1,
      such
      Indemnified Person shall promptly notify the undersigned in writing and the
      undersigned shall assume the defense thereof, including the employment of
      counsel reasonably satisfactory to such Indemnified Person, and shall assume
      the
      payment of all fees and expenses; provided, however, that the failure of any
      Indemnified Person so to notify the undersigned shall not relieve the
      undersigned of its obligations hereunder except to the extent that the
      undersigned or any of its subsidiaries is materially prejudiced by such failure
      to notify. In any such proceeding, any Indemnified Person shall have the right
      to retain its own counsel, but the fees and expenses of such counsel shall
      be at
      the expense of such Indemnified Person unless: (i) the undersigned and the
      Indemnified Person shall have mutually agreed to the retention of such counsel;
      or (ii) in the reasonable judgment of counsel to such Indemnified Person
      representation of both parties by the same counsel would be inappropriate due
      to
      actual or potential differing interests between them. The undersigned shall
      not
      be liable for any settlement of any proceeding effected without its written
      consent, which consent shall not be unreasonably withheld, but if settled with
      such consent, or if there be a final judgment for the plaintiff, the undersigned
      shall indemnify and hold harmless such Indemnified Person from and against
      any
      loss or liability (to the extent stated above) by reason of such settlement
      or
      judgment. Without the prior written consent of the Indemnified Person, which
      consent shall not be unreasonably withheld, the undersigned shall not effect
      any
      settlement of any pending or threatened proceeding in respect of which any
      Indemnified Person is or could have been a party and indemnity could have been
      sought hereunder by such Indemnified Party, unless such settlement includes
      an
      unconditional release of such Indemnified Person from all liability arising
      out
      of such proceeding.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    

    5. Miscellaneous.

    

    5.1 Fees
      and Expenses.
      Except
      as otherwise set forth herein and the other Transaction Documents, each party
      shall pay the fees and expenses of its advisors, counsel, accountants and other
      experts, if any, and all other expenses, incurred by such party incident to
      the
      negotiation, preparation, execution, delivery and performance of the Transaction
      Documents, provided
      that the
      undersigned shall pay all actual attorneys' fees and expenses (including
      disbursements and out-of-pocket expenses) incurred by the Investors in
      connection with (i) the preparation, negotiation, execution and delivery of
      the
      Transaction Documents and the transactions contemplated thereunder, which
      payment shall be made at the Closing and shall not exceed $20,000 (which amount
      includes up to $15,000 not yet paid pursuant to Section 10.5 of the Note
      Purchase Agreement), and (ii) the filing and declaration of effectiveness by
      the
      Commission of the Registration Statement (as defined in the Registration Rights
      Agreement) as provided in Section 4 of the Registration Rights
      Agreement.
      If any
      action at law or in equity (including arbitration) is necessary to enforce
      or
      interpret the terms of any of this Agreement or the other Transaction Documents,
      the prevailing party shall be entitled to reasonable attorney’s fees, costs and
      necessary disbursements in addition to any other relief to which such party
      may
      be entitled.

    

    5.2 Governing
      Law.
      This
      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 Agreement shall only be brought in a state
      or
      Federal court sitting in New York City, Borough of Manhattan.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly
      executed and delivered as of this 9th day of August, 2007.

     

    

    
      	 	
              JPAK
                GROUP, INC.

            
	 	
              (f/k/a
                Rx Staffing, Inc.)

            
	 	 	 
	 	
              By:

            	
              __________________________

            
	 	
              Name:

            	 
	 	
              Title:
                

            	
              Address:

            
	 	 	
              c/o
                Qingdao Renmin Printing Co., Ltd.

            
	 	 	
              No.
                15, Xinghua Road

            
	 	 	
              Qingdao,
                Shandong Province

            
	 	 	
              Postal
                Code 266401

            
	 	 	
              P.R.
                China

            

    

    
      
        
        

      

      
        -11-Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this "Agreement")
      is
      made and entered into as of August 9, 2007, by and among Jpak Group, Inc.,
      a
      Nevada corporation (f/k/a Rx Staffing, Inc., the "Company"),
      and
      the purchasers listed on Schedule
      I
      hereto
      (the "Purchasers").

    

    This
      Agreement is being entered into in connection with the issuance by the Company
      to the Purchasers of Series A Convertible Preferred Stock and Warrants of the
      Company upon conversion of Notes (the “Notes”)
      held
      by the Purchasers.

    

    The
      Company and the Purchasers hereby agree as follows:

    

    1. Definitions.

    

    As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    "Advice"
      shall
      have meaning set forth in Section 3(m).

    

    "Affiliate"
      means,
      with respect to any Person, any other Person which directly or indirectly
      through one or more intermediaries Controls, is controlled by, or is under
      common control with, such Person. For the avoidance of doubt, with respect
      to a
      Purchaser which is a general or limited partnership, an Affiliate shall be
      deemed to include affiliated partnerships managed by the same management company
      or managing general partner or by an entity which controls, is controlled by,
      or
      is under common control with, such management company or managing general
      partner.

    

    "Board"
      shall
      have meaning set forth in Section 3(n).

    

    "Business
      Day"
      means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or a
      day on which banking institutions in the state of New York generally are
      authorized or required by law or other government actions to close.

    

    "Closing
      Date"
      means
      the date of the closing of the issuance of the Preferred Stock and the
      Warrants.

    

    "Commission"
      means
      the Securities and Exchange Commission.

    

    "Common
      Stock"
      means
      the Company's Common Stock, par value $0.001 per share.

    

    “Control”
      (including the terms “controlling”, “controlled by” or “under common control
      with”) means the possession, direct or indirect, of the power to direct or cause
      the direction of the management and policies of a Person, whether through the
      ownership of voting securities, by contract or otherwise.

    

    "Effectiveness
      Date"
      means,
      subject to Section 2(b) hereof, with respect to the Registration Statement,
      the
      earlier of (A) the one hundred fiftieth (150th)
      day
      following the Closing Date (or in the event the Registration Statement is
      reviewed by the Commission, the one hundred eightieth (180th)
      day
      following the Closing Date) or (B) the
      date
      which is within five (5) Business Days after the date on which the Commission
      informs the Company (i) that the Commission will not review the Registration
      Statement or (ii) that
      the
      Company may request the acceleration of the effectiveness of the Registration
      Statement and the Company promptly makes such request; provided that,
      if the
      Effectiveness Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Effectiveness Date shall be the following Business Day.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    "Effectiveness
      Period"
      shall
      have the meaning set forth in Section 2.

    

    "Event"
      shall
      have the meaning set forth in Section 7(e).

    

    "Event
      Date"
      shall
      have the meaning set forth in Section 7(e).

    

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

    

    "Filing
      Date"
      means,
      subject to Section 2(b) hereof, the sixtieth (60th)
      day
      following the Closing Date;
      provided that,
      if the
      Filing Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Filing Date shall be the following Business Day. 

    

    "Holder"
      or
      "Holders"
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

    

    "Indemnified
      Party"
      shall
      have the meaning set forth in Section 5(c).

    

    "Indemnifying
      Party"
      shall
      have the meaning set forth in Section 5(c).

    

    "Losses"
      shall
      have the meaning set forth in Section 5(a).

    

    "Person"
      means
      an individual or a corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, limited liability company, joint
      stock company, government (or an agency or political subdivision thereof) or
      other entity of any kind.

    

    "Preferred
      Stock"
      means
      shares of the Company’s Series A Convertible Preferred Stock, par value $0.001
      per share, issued to the Purchasers upon conversion of the Notes.

    

    "Proceeding"
      means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

    "Prospectus"
      means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference in such
      Prospectus.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    "Registrable
      Securities"
      means
      the shares of Common Stock issuable upon conversion of the Preferred Stock,
      the
      shares of Common Stock issuable upon exercise of the Warrants and any shares
      of
      Common Stock issued or issuable upon any stock split, dividend or other
      distribution, recapitalization or similar event with respect to the foregoing;
      provided,
      that
      the Holder has completed and delivered to the Company a Selling Stockholder
      Questionnaire; and provided,
      further,
      that
      the shares of Common Stock issuable upon conversion of the Preferred Stock
      and
      the shares of Common Stock issuable upon exercise of the Warrants shall cease
      to
      be Registrable Securities upon the earliest to occur of the following: (A)
      sale
      pursuant to a Registration Statement or Rule 144 under the Securities Act (in
      which case, only such security sold shall cease to be a Registrable Security);
      or (B) becoming eligible for sale by the Holder pursuant to Rule
      144(k).

    

    "Registration
      Statement"
      means
      the registration statements and any additional registration statements
      contemplated by Section 2, including (in each case) the Prospectus, amendments
      and supplements to such registration statement or Prospectus, including pre-
      and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference in such registration statement.

    

    "Rule
      144"
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Rule
      158"
      means
      Rule 158 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Rule
      424"
      means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

    

    "Selling
      Stockholder Questionnaire"
      means a
      questionnaire in the form attached as Exhibit
      B
      hereto,
      or such other form of questionnaire as may reasonably be adopted by the Company
      from time to time.

    

    "Special
      Counsel"
      means
      Kramer Levin Naftalis & Frankel LLP and/or another law firm retained by the
      Holders of a majority of the Registrable Securities outstanding at such time,
      for which the Holders will be reimbursed by the Company pursuant to Section
      4.

    

    "Warrants"
      means
      the Series A Warrants and the Series B Warrants to purchase shares of Common
      Stock issued to the Purchasers upon conversion of the Notes.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2. Resale
      Registration.

    

    (a) On
      or
      prior to the Filing Date, the Company shall prepare and file with the Commission
      a "resale" Registration Statement providing for the resale of all Registrable
      Securities for an offering to be made on a continuous basis pursuant to Rule
      415. The Registration Statement shall be on Form SB-2 (except if the Company
      is
      not then eligible to register for resale the Registrable Securities on Form
      SB-2, in which case such registration shall be on another appropriate form
      in
      accordance herewith and with the Securities Act and the rules promulgated
      thereunder). Such Registration Statement shall cover to the extent allowable
      under the Securities Act and the rules promulgated thereunder (including Rule
      416), such indeterminate number of additional shares of Common Stock resulting
      from stock splits, stock dividends or similar transactions with respect to
      the
      Registrable Securities. The Company shall (i) not permit any securities other
      than the Registrable Securities and the securities listed on Schedule
      II
      hereto
      to be included in the Registration Statement and (ii) use its commercially
      reasonable efforts to cause the Registration Statement to be declared effective
      under the Securities Act as promptly as possible after the filing thereof,
      but
      in any event prior to the Effectiveness Date, and to keep such Registration
      Statement continuously effective under the Securities Act until such date as
      is
      the earlier of (x) the date when all Registrable Securities covered by such
      Registration Statement have been sold or (y) the date on which the Registrable
      Securities may be sold without any restriction pursuant to Rule 144(k) as
      determined by the counsel to the Company pursuant to a written opinion letter,
      addressed to the Company's transfer agent to such effect (the "Effectiveness
      Period").
      The
      Company shall request that the effective time of the Registration Statement
      is
      4:00 p.m. Eastern Time on the effective date. If at any time and for any reason,
      an additional Registration Statement is required to be filed because at such
      time the actual number of shares of Common Stock into which the Preferred Stock
      is convertible and the Warrants are exercisable plus the number of shares of
      Common Stock exceeds the number of shares of Registrable Securities remaining
      under the Registration Statement, the Company shall have thirty (30) days to
      file such additional Registration Statement, and the Company shall use its
      commercially reasonable efforts to cause such additional Registration Statement
      to be declared effective by the Commission as soon as possible, but in no event
      later than sixty (60) days after filing (one hundred twenty (120) days after
      filing in the event the Registration Statement is reviewed by the Commission).
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b) Notwithstanding
      anything to the contrary set forth in this Section 2, in the event the
      Commission does not permit the Company to register all of the Registrable
      Securities in the Registration Statement because of the Commission’s application
      of Rule 415 or the Commission requires the Company to either exclude shares
      held
      by certain Holders or deem such Holders to be underwriters with respect to
      their
      Registrable Securities, the Company shall register in the Registration Statement
      such number of Registrable Securities as is permitted by the Commission without
      naming such Holder as an underwriter (unless such Holder agrees to be named
      as
      an underwriter), provided,
      however,
      that
      the number of Registrable Securities to be included in such Registration
      Statement or any subsequent registration statement shall be determined in the
      following order: (i) first, the shares of Common Stock issuable upon conversion
      of the Preferred Stock shall be registered on a pro rata basis among the holders
      of the Preferred Stock, and (ii) second, the shares of Common Stock issuable
      upon exercise of the Warrants shall be registered on a pro rata basis among
      the
      holders of the Warrants. In the event the Commission does not permit the Company
      to register all of the Registrable Securities in the initial Registration
      Statement, the Company shall use its commercially reasonable efforts to file
      subsequent Registration Statements to register the Registrable Securities that
      were not registered in the initial Registration Statement as promptly as
      possible and in a manner permitted by the Commission. For purposes of this
      Section 2(b), “Filing
      Date”
      means
      with respect to each subsequent Registration Statement filed pursuant hereto,
      the
      later
      of (i) sixty (60) days following the sale of substantially all of the
      Registrable Securities included in the initial Registration Statement or any
      subsequent Registration Statement and (ii) six (6) months following the
      effective date of the initial Registration Statement or any subsequent
      Registration Statement, as applicable, or such earlier or later date as
      permitted or required by the Commission. For
      purposes of this Section 2(b), “Effectiveness
      Date”
means
      with respect to each subsequent Registration Statement filed pursuant hereto,
      the earlier of (A)
      the
      ninetieth (90th)
      day
      following the filing date of such Registration Statement (or in the event such
      Registration Statement is reviewed by the Commission, the one hundred twentieth
      (120th)
      day
      following such filing date) or (B) the date which is within five (5) Business
      Days after the date on which the Commission informs the Company (i) that the
      Commission will not review such Registration Statement or (ii) that
      the
      Company may request the acceleration of the effectiveness of such Registration
      Statement and the Company promptly makes such request; provided that,
      if the
      Effectiveness Date falls on a Saturday, Sunday or any other day which shall
      be a
      legal holiday or a day on which the Commission is authorized or required by
      law
      or other government actions to close, the Effectiveness Date shall be the
      following Business Day.

    

    (c) Each
      Holder agrees to furnish to the Company a completed Selling Stockholder
      Questionnaire not more than fifteen (15) Trading Days following the date of
      this
      Agreement. Each Holder further agrees that it shall not be entitled to be named
      as a selling security holder in the Registration Statement or use the Prospectus
      for offers and resales of Registrable Securities at any time, unless such Holder
      has returned to the Company a completed and signed Selling Stockholder
      Questionnaire. If a Holder of Registrable Securities returns a Selling
      Stockholder Questionnaire after the deadline specified in the previous sentence,
      the Company shall use its commercially reasonable efforts to take such actions
      as are required to name such Holder as a selling security holder in the
      Registration Statement or any pre-effective or post-effective amendment thereto
      and to include (to the extent not theretofore included) in the Registration
      Statement the Registrable Securities identified in such late Selling Stockholder
      Questionnaire; provided that the Company shall not be required to file an
      additional Registration Statement solely for such shares. Each Holder
      acknowledges and agrees that the information in the Selling Stockholder
      Questionnaire will be used by the Company in the preparation of the Registration
      Statement and hereby consents to the inclusion of such information in the
      Registration Statement.

    

    3. Registration
      Procedures.

    

      In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     

      (a)
       Prepare
      and file with the Commission, on or prior to the Filing Date, a Registration
      Statement on Form SB-2 (or if the Company is not then eligible to register
      for
      resale the Registrable Securities on Form SB-2 such registration shall be on
      another appropriate form in accordance herewith and with the Securities Act
      and
      the rules promulgated thereunder) in accordance with the plan of distribution
      as
      set forth on Exhibit
      A
      hereto
      and in accordance with applicable law, regulations and Commission policies,
      and
      cause the Registration Statement to become effective and remain effective as
      provided herein; provided,
      however,
      that
      not less than three (3) Business Days prior to the filing of the Registration
      Statement or any related Prospectus or any amendment or supplement thereto,
      the
      Company shall (i) furnish to the Holders and any Special Counsel, copies of
      all
      such documents proposed to be filed, which documents will be subject to the
      review of such Holders and such Special Counsel, and (ii) cause its officers
      and
      directors, counsel and independent certified public accountants to respond
      to
      such inquiries as shall be necessary, in the reasonable opinion of Special
      Counsel, to conduct a reasonable review of such documents. The Company shall
      not
      file the Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities or any Special Counsel shall reasonably object in writing within
      three (3) Business Days of their receipt thereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement as may be necessary to keep the
      Registration Statement continuously effective as to the applicable Registrable
      Securities for the Effectiveness Period and prepare and file with the Commission
      such additional Registration Statements in order to register for resale under
      the Securities Act all of the Registrable Securities; (ii) cause the related
      Prospectus to be amended or supplemented by any required Prospectus supplement,
      and as so supplemented or amended to be filed pursuant to Rule 424 (or any
      similar provisions then in force) promulgated under the Securities Act; (iii)
      respond as promptly as possible to any comments received from the Commission
      with respect to the Registration Statement or any amendment thereto and as
      promptly as possible provide the Holders true and complete copies of all
      correspondence from and to the Commission relating to the Registration
      Statement; (iv) file the final prospectus pursuant to Rule 424 of the Securities
      Act no later than 9:00 a.m. Eastern Time on the second Business Day following
      the date the Registration Statement is declared effective by the Commission;
      and
      (v) comply in all material respects with the provisions of the Securities Act
      and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by the Registration Statement during the Effectiveness Period
      in accordance with the intended methods of disposition by the Holders thereof
      set forth in the Registration Statement as so amended or in such Prospectus
      as
      so supplemented.

    

    (c) Notify
      the Holders of Registrable Securities and any Special Counsel as promptly as
      possible (and, in the case of (i)(A) below, not less than three (3) days prior
      to such filing, and in the case of (iii) below, on the same day of receipt
      by
      the Company of such notice from the Commission) and (if requested by any such
      Person) confirm such notice in writing no later than two (2) Business Days
      following the day (i)(A) when a Prospectus or any Prospectus supplement or
      post-effective amendment to the Registration Statement is filed; (B) when the
      Commission notifies the Company whether there will be a "review" of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement and (C) with respect to the Registration Statement or
      any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental authority
      for amendments or supplements to the Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission of any stop
      order suspending the effectiveness of the Registration Statement covering any
      or
      all of the Registrable Securities or the initiation or threatening of any
      Proceedings for that purpose; (iv) if at any time any of the representations
      and
      warranties of the Company contained in any agreement contemplated hereby ceases
      to be true and correct in all material respects; (v) of the receipt by the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Registrable Securities for sale
      in
      any jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and (vi) of the occurrence of any event that makes any statement made
      in the Registration Statement or Prospectus or any document incorporated or
      deemed to be incorporated therein by reference untrue in any material respect
      or
      that requires any revisions to the Registration Statement, Prospectus or other
      documents so that, in the case of the Registration Statement or the Prospectus,
      as the case may be, it will not contain any untrue statement of a material
      fact
      or omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      (d) Use
      its
      commercially reasonable efforts to avoid the issuance of, or, if issued, obtain
      the withdrawal of, as promptly as possible, (i) any order suspending the
      effectiveness of the Registration Statement or (ii) any suspension of the
      qualification (or exemption from qualification) of any of the
      Registrable Securities
      for sale in any jurisdiction.

    

    (e) If
      requested by the Holders of a majority in interest of the Registrable
      Securities, (i) promptly incorporate in a Prospectus supplement or
      post-effective amendment to the Registration Statement such information as
      the
      Company reasonably agrees should be included therein and (ii) make all required
      filings of such Prospectus supplement or such post-effective amendment as soon
      as practicable after the Company has received notification of the matters to
      be
      incorporated in such Prospectus supplement or post-effective
      amendment.

    

    (f)  If
      requested by any Holder, furnish to such Holder and any Special Counsel, without
      charge, at least one conformed copy of each Registration Statement and each
      amendment thereto, including financial statements and schedules, all documents
      incorporated or deemed to be incorporated therein by reference, and all exhibits
      to the extent requested by such Person (including those previously furnished
      or
      incorporated by reference) promptly after the filing of such documents with
      the
      Commission.

    

    (g)  Promptly
      deliver to each Holder and any Special Counsel, without charge, as many copies
      of the Prospectus or Prospectuses (including each form of prospectus) and each
      amendment or supplement thereto as such Persons may reasonably request; and
      subject to the provisions of Sections 3(m) and 3(n), the Company hereby consents
      to the use of such Prospectus and each amendment or supplement thereto by each
      of the selling Holders in connection with the offering and sale of the
      Registrable Securities covered by such Prospectus and any amendment or
      supplement thereto.

    

    (h)  Prior
      to
      any public offering of Registrable Securities, use its commercially reasonable
      efforts to register or qualify or cooperate with the selling Holders and any
      Special Counsel in connection with the registration or qualification (or
      exemption from such registration or qualification) of such Registrable
      Securities for offer and sale under the securities or Blue Sky laws of such
      jurisdictions within the United States as any Holder requests in writing, to
      keep each such registration or qualification (or exemption therefrom) effective
      during the Effectiveness Period and to do any and all other acts or things
      necessary or advisable to enable the disposition in such jurisdictions of the
      Registrable Securities covered by a Registration Statement; provided,
      however,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified or to take any action that would
      subject it to general service of process in any such jurisdiction where it
      is
      not then so subject or subject the Company to any material tax in any such
      jurisdiction where it is not then so subject.

    

    (i) Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be sold pursuant to a
      Registration Statement, which certificates, to the extent permitted by
      applicable federal and state securities laws, shall be free of all restrictive
      legends, and to enable such Registrable Securities to be in such denominations
      and registered in such names as any Holder may request in connection with any
      sale of Registrable Securities.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (j) Upon
      the
      occurrence of any event contemplated by Section 3(c)(vi), as promptly as
      possible, prepare a supplement or amendment, including a post-effective
      amendment, to the Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference, and file any other required document so that, as thereafter
      delivered, neither the Registration Statement nor such Prospectus will contain
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading.

    

    (k) Use
      its
      commercially reasonable efforts to cause all Registrable Securities relating
      to
      the Registration Statement to be listed or quoted on the OTC Bulletin Board
      or
      any other securities exchange, quotation system or market, if any, on which
      similar securities issued by the Company are then listed or traded.

    

    (l) Comply
      in
      all material respects with all applicable rules and regulations of the
      Commission and make generally available to its security holders all documents
      filed or required to be filed with the Commission, including, but not limited,
      to, earning statements satisfying the provisions of Section 11(a) of the
      Securities Act and Rule 158 not later than 90 days after the end of any 12-month
      period if such period is a fiscal year commencing on the first day of the first
      fiscal quarter of the Company after the effective date of the Registration
      Statement, which statement shall conform to the requirements of Rule 158.

    

    (m) The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and the natural persons thereof that have voting and dispositive control
      over the Registrable Securities. During any periods that the Company is unable
      to meet its obligations hereunder with respect to the registration of the
      Registrable Securities solely because any Holder fails to furnish such
      information within five (5) Trading Days of the Company’s request, any
      liquidated damages that are accruing at such time as to such Holder only shall
      be tolled and any Event that may otherwise occur solely because of such delay
      shall be suspended as to such Holder only, until such information is delivered
      to the Company.

    

    If
      the
      Registration Statement refers to any Holder by name or otherwise as the holder
      of any securities of the Company, then such Holder shall have the right to
      require (if such reference to such Holder by name or otherwise is not required
      by the Securities Act or any similar federal or applicable state law then in
      force) the deletion of the reference to such Holder in any amendment or
      supplement to the Registration Statement filed or prepared subsequent to the
      time that such reference ceases to be required.

    

    Each
      Holder covenants and agrees that it will not sell any Registrable Securities
      under the Registration Statement until the Company has electronically filed
      the
      Prospectus as then amended or supplemented as contemplated in Section 3(g)
      and
      notice from the Company that such Registration Statement and any post-effective
      amendments thereto have become effective as contemplated by Section
      3(c).

    

    Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), 3(c)(vi) or 3(n),
      such Holder will forthwith discontinue disposition of such Registrable
      Securities under the Registration Statement until such Holder's receipt of
      the
      copies of the supplemented Prospectus and/or amended Registration Statement
      contemplated by Section 3(j), or until it is advised in writing (the
      "Advice")
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (n) If
      (i)
      there is material non-public information regarding the Company which the
      Company's Board of Directors (the "Board")
      determines not to be in the Company's best interest to disclose and which the
      Company is not otherwise required to disclose, (ii) there is a significant
      business opportunity (including, but not limited to, the acquisition or
      disposition of assets (other than in the ordinary course of business) or any
      merger, consolidation, tender offer or other similar transaction) available
      to
      the Company which the Board determines not to be in the Company's best interest
      to disclose, or (iii) the Company is required to file a post-effective amendment
      to the Registration Statement to incorporate the Company’s quarterly and annual
      reports and audited financial statements on Forms 10-QSB and 10-KSB, then the
      Company may (x) postpone or suspend filing of a registration statement for
      a
      period not to exceed thirty (30) consecutive days or (y) postpone or suspend
      effectiveness of a registration statement for a period not to exceed twenty
      (20)
      consecutive Business Days; provided that the Company may not postpone or suspend
      effectiveness of a registration statement under this Section 3(n) for more
      than
      sixty (60) Business Days in the aggregate during any three hundred sixty (360)
      day period; provided,
      however,
      that no
      such postponement or suspension shall be permitted for consecutive thirty (30)
      Business Day periods arising out of the same set of facts, circumstances or
      transactions.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4. Registration
      Expenses.
      

    

    All
      fees
      and expenses incident to the performance of or compliance with this Agreement
      by
      the Company, except as and to the extent specified in this Section 4, shall
      be
      borne by the Company whether or not the Registration Statement is filed or
      becomes effective and whether or not any Registrable Securities are sold
      pursuant to the Registration Statement. The fees and expenses referred to in
      the
      foregoing sentence shall include, without limitation, (i) all registration
      and
      filing fees (including, without limitation, fees and expenses (A) with respect
      to filings required to be made with the OTC Bulletin Board and/or
      each other securities exchange or market on which Registrable Securities are
      required hereunder to be quoted or listed, if any (B) with respect solely to
      filing fees required to be paid to the National Association of Securities
      Dealers, Inc. and the NASD Regulation, Inc. and (C) in compliance with state
      securities or Blue Sky laws (including, without limitation, the reasonable
      fees
      and disbursements of counsel for the Holders in connection with Blue Sky
      qualifications of the Registrable Securities and determination of the
      eligibility of the Registrable Securities for investment under the laws of
      such
      jurisdictions as the Holders of a majority of Registrable Securities may
      designate not to exceed $5,000 unless the Company elects to have such filings
      completed by its counsel)), (ii) printing expenses (including, without
      limitation, expenses of printing certificates for Registrable Securities and
      of
      printing prospectuses if the printing of prospectuses is requested by the
      holders of a majority of the Registrable Securities included in the Registration
      Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and
      disbursements of counsel for the Company and Special Counsel for the Holders,
      in
      the case of the Special Counsel, up to a maximum amount of $3,500, (v)
      Securities Act liability insurance, if the Company so desires such insurance,
      and (vi) fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by this
      Agreement, including, without limitation, the Company's independent public
      accountants. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit, the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder. The Company shall not be responsible
      for any discounts, commissions, transfer taxes or other similar fees incurred
      by
      the Holders in connection with the sale of the Registrable
      Securities.

    

    5. Indemnification.

    

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, managers, partners, members,
      shareholders, agents, brokers, investment advisors and employees of each of
      them, each Person who controls any such Holder (within the meaning of Section
      15
      of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, agents and employees of each such controlling Person, to the fullest
      extent permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities, costs (including, without limitation, costs of preparation
      and reasonable attorneys' fees) and expenses (collectively, "Losses")
      , as
      incurred, arising out of or relating to any violation of securities laws by
      the
      Company or untrue or alleged untrue statement of a material fact contained
      in
      the Registration Statement, any Prospectus or any form of prospectus or in
      any
      amendment or supplement thereto or in any preliminary prospectus, or arising
      out
      of or relating to any omission or alleged omission of a material fact required
      to be stated therein or necessary to make the statements therein (in the case
      of
      any Prospectus or form of prospectus or supplement thereto, in the light of
      the
      circumstances under which they were made) not misleading, except to the extent,
      but only to the extent, that such untrue statements or omissions are based
      solely upon information regarding such Holder or such other Indemnified Party
      furnished in writing to the Company by such Holder expressly for use therein.
      The Company shall notify the Holders promptly of the institution, threat or
      assertion of any Proceeding of which the Company is aware in connection with
      the
      transactions contemplated by this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents and employees
      of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses (as determined by a court of competent jurisdiction
      in a final judgment not subject to appeal or review), as incurred, arising
      solely out of or based solely upon any untrue statement of a material fact
      contained in the Registration Statement, any Prospectus, or any form of
      prospectus, or in any amendment or supplement thereto, or arising solely out
      of
      or based solely upon any omission of a material fact required to be stated
      therein or necessary to make the statements therein (in the case of any
      Prospectus or form of prospectus or supplement thereto, in the light of the
      circumstances under which they were made) not misleading, to the extent, but
      only to the extent, that such untrue statement or omission is contained in
      any
      information so furnished in writing by such Holder or other Indemnifying Party
      to the Company specifically for inclusion in the Registration Statement or
      such
      Prospectus. Notwithstanding anything to the contrary contained herein, each
      Holder shall be liable under this Section 5(b) for only that amount as does
      not
      exceed the net proceeds to such Holder as a result of the sale of Registrable
      Securities pursuant to such Registration Statement.

    

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified
      Party"),
      such
      Indemnified Party promptly shall notify the Person from whom indemnity is sought
      (the "Indemnifying
      Party)
      in
      writing, and the Indemnifying Party shall be entitled to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have proximately and materially adversely prejudiced the
      Indemnifying Party.

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; or (2) the Indemnifying Party shall have failed promptly to assume
      the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such parties shall have been advised by counsel
      that a conflict of interest is likely to exist if the same counsel were to
      represent such Indemnified Party and the Indemnifying Party (in which case,
      if
      such Indemnified Party notifies the Indemnifying Party in writing that it elects
      to employ separate counsel at the expense of the Indemnifying Party, the
      Indemnifying Party shall not have the right to assume the defense thereof and
      such counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld or delayed. No Indemnifying Party shall, without the prior written
      consent of the Indemnified Party, effect any settlement of any pending or
      threatened Proceeding in respect of which any Indemnified Party is a party
      and
      indemnity has been sought hereunder, unless such settlement includes an
      unconditional release of such Indemnified Party from all liability on claims
      that are the subject matter of such Proceeding.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten (10) Business Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided,
      that the Indemnified Party shall reimburse all such fees and expenses to the
      extent it is finally judicially determined that such Indemnified Party is not
      entitled to indemnification hereunder).

    

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is due but unavailable
      to
      an Indemnified Party because of a failure or refusal of a governmental authority
      to enforce such indemnification in accordance with its terms (by reason of
      public policy or otherwise), then each Indemnifying Party, in lieu of
      indemnifying such Indemnified Party, shall contribute to the amount paid or
      payable by such Indemnified Party as a result of such Losses, in such proportion
      as is appropriate to reflect the relative fault of the Indemnifying Party and
      Indemnified Party in connection with the actions, statements or omissions that
      resulted in such Losses as well as any other relevant equitable considerations.
      The relative fault of such Indemnifying Party and Indemnified Party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission of a material fact, has been taken or made by, or relates
      to
      information supplied by, such Indemnifying, Party or Indemnified Party, and
      the parties'
      relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such action, statement or omission. The amount paid or payable by a
      party as a result of any Losses shall be deemed to include, subject to the
      limitations set forth in Section 5(c), any reasonable attorneys' or other
      reasonable fees or expenses incurred by such party in connection with any
      Proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for in this Section was available
      to
      such party in accordance with its terms. In no event shall any selling Holder
      be
      required to contribute an amount under this Section 5(d) in excess of the net
      proceeds received by such Holder upon sale of such Holder’s Registrable
      Securities pursuant to the Registration Statement giving rise to such
      contribution obligation.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph. No Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any Person who was
      not guilty of such fraudulent misrepresentation.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties pursuant to the law.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    6. Rule
      144.

    

    As
      long
      as any Holder owns Preferred Stock, Warrants or Registrable Securities, the
      Company covenants to timely file (or obtain extensions in respect thereof and
      file within the applicable grace period) all reports required to be filed by
      the
      Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange
      Act. As long as any Holder owns Preferred Stock, Warrants or Registrable
      Securities, if the Company is not required to file reports pursuant to Section
      13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders
      and make publicly available in accordance with Rule 144(c) promulgated under
      the
      Securities Act annual and quarterly financial statements, together with a
      discussion and analysis of such financial statements in form and substance
      substantially similar to those that would otherwise be required to be included
      in reports required by Section 13(a) or 15(d) of the Exchange Act, as well
      as
      any other information required thereby, in the time period that such filings
      would have been required to have been made under the Exchange Act. The Company
      further covenants that it will take such further action as any Holder may
      reasonably request, all to the extent required from time to time to enable
      such
      Person to sell Conversion Shares and Warrant Shares without registration under
      the Securities Act within the limitation of the exemptions provided by Rule
      144
      promulgated under the Securities Act, including providing any legal opinions
      relating to such sale pursuant to Rule 144. Upon the request of any Holder,
      the
      Company shall deliver to such Holder a written certification of a duly
      authorized officer as to whether it has complied with such
      requirements.

    

    7. Miscellaneous.

    

    (a) Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, such Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement.
      The Company and each Holder agree that monetary damages would not
      provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall waive the
      defense that a remedy at law would be adequate.

    

    (b) No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has, as of the date hereof entered
      into
      and currently in effect, nor shall the Company or any of its subsidiaries,
      on or
      after the date of this Agreement, enter into any agreement with respect to
      its
      securities that is inconsistent with the rights granted to the Holders in this
      Agreement or otherwise conflicts with the provisions hereof. Except as disclosed
      in Schedule
      II
      hereto,
      neither the Company nor any of its subsidiaries has previously entered into
      any
      agreement currently in effect granting any registration rights with respect
      to
      any of its securities to any Person. Without limiting the generality of the
      foregoing, without the written consent of the Holders of a majority of the
      then
      outstanding Registrable Securities, the Company shall not grant to any Person
      the right to request the Company to register any securities of the Company
      under
      the Securities Act unless the rights so granted are subject in all respects
      to
      the prior rights in full of the Holders set forth herein, and are not otherwise
      in conflict with the provisions of this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (c) No
      Piggyback on Registrations.
      Neither
      the Company nor any of its security holders (other than the Holders in such
      capacity pursuant hereto or as disclosed on Schedule
      II
      hereto)
      may include securities of the Company in the Registration Statement, and the
      Company shall not after the date hereof enter into any agreement providing
      such
      right to any of its securityholders, unless the right so granted is subject
      in
      all respects to the prior rights in full of the Holders set forth herein, and
      is
      not otherwise in conflict with the provisions of this Agreement.

    

    (d) Piggy-Back
      Registrations.
      If at
      any time when there is not an effective Registration Statement covering (i)
      Conversion Shares or (ii) Warrant Shares, the Company shall determine to prepare
      and file with the Commission a registration statement relating to an offering
      for its own account or the account of others under the Securities Act of any
      of
      its equity securities, other than on Form S-4 or Form S-8 (each as promulgated
      under the Securities Act) or their then equivalents relating to equity
      securities to be issued solely in connection with any acquisition of any entity
      or business or equity securities issuable in connection with stock option or
      other employee benefit plans, the Company shall send to each Holder of
      Registrable Securities written notice of such determination and, if within
      thirty (30) days after receipt of such notice, or within such shorter period
      of
      time as may be specified by the Company in such written notice as may be
      necessary for the Company to comply with its obligations with respect to the
      timing of the filing of such registration statement, any such Holder shall
      so
      request in writing, (which request shall specify the Registrable Securities
      intended to be disposed of by the Purchasers), the Company will cause the
      registration under the Securities Act of all Registrable Securities which the
      Company has been so requested to register by the Holder, to the extent requisite
      to permit the disposition of the Registrable Securities so to be registered,
      provided that if at any time after giving written notice of its intention to
      register any securities and prior to the effective date of the registration
      statement filed in connection with such registration, the Company shall
      determine for any reason not to register or to delay registration of such
      securities, the Company may, at its election, give written notice of such
      determination to such Holder and, thereupon, (i) in the case of a determination
      not to register, shall be relieved of its obligation to register any Registrable
      Securities in connection with such registration (but not from its obligation
      to
      pay expenses in accordance with Section 4 hereof), and (ii) in the case of
      a
      determination to delay registering, shall be permitted to delay registering
      any
      Registrable Securities being registered pursuant to this Section 7(d) for the
      same period as the delay in registering such other securities. The Company
      shall
      include in such registration statement all or any part of such Registrable
      Securities such Holder requests to be registered; provided,
      however,
      that
      the Company shall not be required to register any Registrable Securities
      pursuant to this Section 7(d) that are eligible for sale pursuant to Rule 144(k)
      of the Securities Act. In the case of an underwritten public offering, if the
      managing underwriter(s) or underwriter(s) should reasonably object to the
      inclusion of the Registrable Securities in such registration statement, then
      if
      the Company after consultation with the managing underwriter should reasonably
      determine that the inclusion of such Registrable Securities would materially
      adversely affect the offering contemplated in such registration statement,
      and
      based on such determination recommends inclusion in such registration statement
      of fewer or none of the Registrable Securities of the Holders, then (x) the
      number of Registrable Securities of the Holders included in such registration
      statement shall be reduced pro-rata among such Holders (based
      upon the number of Registrable Securities requested to be included in the
      registration), if the Company after consultation with the underwriter(s)
      recommends the inclusion of fewer Registrable Securities, or (y) none of the
      Registrable Securities of the Holders shall be included in such registration
      statement, if the Company after consultation with the underwriter(s) recommends
      the inclusion of none of such Registrable Securities; provided,
      however,
      that if
      securities are being offered for the account of other persons or entities as
      well as the Company, such reduction shall not represent a greater fraction
      of
      the number of Registrable securities intended to be offered by the Holders
      than
      the fraction of similar reductions imposed on such other persons or entities
      (other than the Company).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e) Failure
      to File Registration Statement and Other Events.
      The
      Company and the Purchasers agree that the Holders will suffer damages if the
      Registration Statement is not filed on or prior to the Filing Date and not
      declared effective by the Commission on or prior to the Effectiveness Date
      and
      maintained in the manner contemplated herein during the Effectiveness Period
      or
      if certain other events occur. The Company and the Holders further agree that
      it
      would not be feasible to ascertain the extent of such damages with precision.
      Accordingly, if (A) the Registration Statement is not filed on or prior to
      the
      Filing Date, or (B) the Registration Statement is not declared effective by
      the
      Commission on or prior to the Effectiveness Date, or (C) the
      Registration Statement is filed with and declared effective by the Commission
      but thereafter ceases to be effective as to all Registrable Securities at any
      time prior to the expiration of the Effectiveness Period, without being
      succeeded by a subsequent Registration Statement filed with and declared
      effective by the Commission in accordance with the terms of this Agreement,
      or
      (D)
      the
      Company has breached Section 3(n) hereof, or
      (E)
      following the date that the shares of Common Stock initially commence trading
      or
      quotation, trading in the Common Stock shall be suspended or if the Common
      Stock
      is no longer quoted on or delisted from the principal exchange on which the
      Common Stock is then traded for any reason for more than five (5) Business
      Days
      in the aggregate, in
      each
      case other than as a result of a breach of this Agreement by a Holder or a
      Holder’s failure to return a Selling Stockholder Questionnaire within the time
      period provided by Section 2(c) hereof (any such failure or breach being
      referred to as an "Event,"
      and
      for purposes of clauses (A), (B) and (D) the date on which such Event occurs,
      or
      for purposes of clause (C) after
      more than thirty (30) days, or for purposes of clause (E) the date on which
      such
      five (5) Business Day period is exceeded
      being
      referred to as "Event
      Date"),
      the
      Company shall pay an amount as liquidated damages to each Holder, payable in
      cash, equal to two percent (2.0%) of the amount of the Holder’s initial
      investment in the Preferred Stock for each calendar month or portion thereof
      thereafter from the Event Date until the applicable Event is cured; provided,
      however,
      that in
      no event shall the amount of liquidated damages payable at any time and from
      time to time to any Holder pursuant to this Section 7(e) exceed an aggregate
      of
      ten percent (10%) of the amount of the Holder’s initial investment in the
      Preferred Stock. The Company shall not be liable for liquidated damages under
      this Agreement as to any Registrable Securities which are not permitted by
      the
      Commission to be included in a Registration Statement because of its application
      of Rule 415 until such time as the provisions of this Agreement as to the
      Registration Statements required to be filed pursuant to Section 2(b) are
      triggered, in which case the provisions of this Section 7(e) shall once again
      apply, if applicable. In such case, the liquidated damages shall be calculated
      to only apply to the percentage of Registrable Securities which are permitted
      by
      the Commission to be included in the Registration Statement. Notwithstanding
      anything to the contrary in this paragraph (e), if (a) any of the Events
      described in clauses (A), (B),
      (C) or
      (D)
      shall
      have occurred, (b) on or prior to the applicable Event Date, the Company shall
      have exercised in good faith its rights under Section 3(n) hereof and (c) the
      postponement or suspension permitted pursuant to such Section 3(n) shall remain
      effective as of such applicable Event Date, then the applicable Event Date
      shall
      be deemed instead to occur on the second Business Day following the termination
      of such postponement or suspension. Liquidated damages payable by the Company
      pursuant to this Section 7(e) shall be payable on the first (1st)
      Business Day of each thirty (30) day period following the Event Date.
      Notwithstanding anything to the contrary contained herein, in no event shall
      any
      liquidated damages be payable with respect to the Warrants or the Warrant
      Shares.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of seventy-five percent (75%) of the
      Registrable Securities outstanding. 

    

    (g) Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery, telecopy, e-mail or facsimile at the address or number designated
      below (if delivered on a business day during normal business hours where such
      notice is to be received), or the first business day following such delivery
      (if
      delivered other than on a business day during normal business hours where such
      notice is to be received) or (b) on the second business day following the date
      of mailing by express courier service, fully prepaid, addressed to such address,
      or upon actual receipt of such mailing, whichever shall first occur. The
      addresses for such communications shall be:

     

    
      	
              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 (which shall not constitute notice) 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

            
	 	 
	
              If
                to any Purchaser:

            	
              At
                the address of such Purchaser set forth on Exhibit
                A
                to
                this Agreement, with copies to Purchaser’s counsel as set forth below or
                as specified in writing by such Purchaser:

            
	 	 
	
              with
                copies (which shall not constitute notice) 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

            

    

     

    Any
      party
      hereto may from time to time change its address for notices by giving at least
      ten (10) days written notice of such changed address to the other party
      hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (h) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns and shall inure to the benefit of each
      Holder and its successors and assigns. The Company may not assign this Agreement
      or any of its rights or obligations hereunder without the prior written consent
      of each Holder. 

    

    (i) Assignment
      of Registration Rights.
      The
      rights of each Holder hereunder, including the right to have the Company
      register for resale Registrable Securities in accordance with the terms of
      this
      Agreement, shall be automatically assignable by each Holder to any Person of
      all
      or a portion of
      the
      Preferred Stock or the Registrable Securities if: (i) the Holder agrees in
      writing with the transferee or assignee to assign such rights, and a copy of
      such agreement is furnished to the Company within a reasonable time after such
      assignment, (ii) the Company is, within a reasonable time after such transfer
      or
      assignment, furnished with written notice of (a) the name and address of such
      transferee or assignee, and (b) the securities with respect to which such
      registration rights are being transferred or assigned, (iii) following such
      transfer or assignment the further disposition of such securities by the
      transferee or assignees is restricted under the Securities Act and applicable
      state securities laws, or (iv) at or before the time the Company receives the
      written notice contemplated by clause (ii) of this Section, the transferee
      or
      assignee agrees in writing with the Company to be bound by all of the provisions
      of this Agreement. The rights to assignment shall apply to the Holders (and
      to
      subsequent) successors and assigns. 

    

    (j) Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other parties
      hereto, it being understood that all parties need not sign the same counterpart.
      In the event that any signature is delivered by facsimile transmission, such
      signature shall create a valid binding obligation of the party executing (or
      on
      whose behalf such signature is executed) the same with the same force and effect
      as if such facsimile signature were the original thereof.

     

    (k) Governing
      Law; Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not be interpreted or construed
      with
      any presumption against the party causing this Agreement to be drafted. The
      Company and the Holders agree that venue for any dispute arising under this
      Agreement will lie exclusively in the state or federal courts located in New
      York County, New York, and the parties irrevocably waive any right to raise
      forum
      non conveniens
      or any
      other argument that New York is not the proper venue. The Company and the
      Holders irrevocably consent to personal jurisdiction in the state and federal
      courts of the state of New York. The Company and the Holders consent to process
      being served in any such suit, action or proceeding by delivering a copy thereof
      to such party at the address in effect for notices to it under this Agreement
      and agrees that such service shall constitute good and sufficient service of
      process and notice thereof. Nothing in this Section 7(k) shall affect or limit
      any right to serve process in any other manner permitted by law. The Company
      and
      the Holders hereby agree that the prevailing party in any suit, action or
      proceeding arising out of or relating to this Agreement, shall be entitled
      to
      reimbursement for reasonable legal fees from the non-prevailing party. The
      parties hereby waive all rights to a trial by jury.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (l) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (m) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held to be
      invalid, illegal, void or unenforceable in any respect, the remainder of the
      terms, provisions, covenants and restrictions set forth herein shall remain
      in
      full force and effect and shall in no way be affected, impaired or invalidated,
      and the parties hereto shall use their reasonable efforts to find and employ
      an
      alternative means to achieve the same or substantially the same result as that
      contemplated by such term, provision, covenant or restriction. It is hereby
      stipulated and declared to
      be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    

    (n) Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

    

    (o) Shares
      Held by the Company and its Affiliates.
      Whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or its Affiliates (other than any Holder or transferees or successors
      or
      assigns thereof if such Holder is deemed to be an Affiliate solely by reason
      of
      its holdings of such Registrable Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

    

    (p) Independent
      Nature of Purchasers.
      The
      Company acknowledges that the obligations of each Purchaser under this Agreement
      are several and not joint with the obligations of any other Purchaser, and
      no
      Purchaser shall be responsible in any way for the performance of the obligations
      of any other Purchaser under this Agreement. The Company acknowledges that
      the
      decision of each Purchaser to purchase Securities upon conversion of the Notes
      has been made by such Purchaser independently of any other Purchaser and
      independently of any information, materials, statements or opinions as to the
      business, affairs, operations, assets, properties, liabilities, results of
      operations, condition (financial or otherwise) or prospects of the Company
      or of
      its Subsidiaries which may have been made or given by any other Purchaser or
      by
      any agent or employee of any other Purchaser, and no Purchaser or any of its
      agents or employees shall have any liability to any Purchaser (or any other
      person) relating to or arising from any such information, materials, statements
      or opinions. The Company acknowledges that nothing contained herein, and no
      action taken by any Purchaser pursuant hereto or thereto (including, but not
      limited to, the (i) inclusion of a Purchaser in the Registration Statement
      and
      (ii) review by, and consent to, such Registration Statement by a Purchaser)
      shall be deemed to constitute the Purchasers as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Purchasers are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by this Agreement. The Company
      acknowledges that each Purchaser shall be entitled to independently protect
      and
      enforce its rights, including without limitation, the rights arising out of
      this
      Agreement, and it shall not be necessary for any other Purchaser to be joined
      as
      an additional party in any proceeding for such purpose. The Company acknowledges
      that for reasons of administrative convenience only, this Agreement has been
      prepared by counsel for one of the Purchasers and such counsel does not
      represent all of the Purchasers.  The Company acknowledges that it has
      elected to provide all Purchasers with the same terms for the convenience of
      the
      Company and not because it was required or requested to do so by the Purchasers.
      The Company acknowledges that such procedure with respect to this Agreement
      in
      no way creates a presumption that the Purchasers are in any way acting in
      concert or as a group with respect to this Agreement or the transactions
      contemplated hereby.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Registration Rights
      Agreement to be duly executed by their respective authorized persons as of
      the
      date first indicated above.

    

    
      	 	 	JPAK GROUP, INC. 
	 	 	 
	 	 	By:________________________________ 
	 	 	Name: 
	 	 	Title:  
	 	 	 
	 	 	PURCHASER: 
	 	 	 
	 	 	By:_____________________________________ 
	 	 	Name: 
	 	 	Title: 

    

     

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Schedule
      I

    Purchasers

     

    
      	
              Names
                and
                Addresses

              of
                Purchasers

            	
              Number
                of Preferred
                Shares

              & Warrants
                Purchased

            	
              Dollar
                Amount of

              Investment

            
	 	 	 
	 	 	 

    

    

         

          

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Schedule
      II

    Other
      Securities to be Included on the Registration Statement

    

    

    
      	Joyrich
              Group
              Limited    	 	 	11,285,300	 
	Fabregas
              Group Limited  	 	 	2,097,588	 
	Statepro
              Investments
              Ltd.    	 	 	774,954
	 
	Raytech
              Investments
              Limited     	 	 	1,085,836
	 
	Capital
              American Markets
              Limited    	 	 	561,322
	 

    

                        
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      A

    Plan
      of Distribution

    

     

    The
      selling security holders and any of their pledgees, donees, assignees and
      successors-in-interest may, from time to time, sell any or all of their shares
      of common stock being offered under this prospectus on any stock exchange,
      market or trading facility on which shares of our common stock are traded or
      in
      private transactions. These sales may be at fixed or negotiated prices. The
      selling security holders may use any one or more of the following methods when
      disposing of shares:

     

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

          

     

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

          

     

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

          

     

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

          

     

    	·  	
            privately
              negotiated transactions;

          

     

    	·  	
            to
              cover short sales made after the date that the registration statement
              of
              which this prospectus is a part is declared effective by the
              Commission;

          

     

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

          

     

    	·  	
            a
              combination of any of these methods of sale;
              and

          

     

    	·  	
            any
              other method permitted pursuant to applicable
              law.

          

     

    The
      shares may also be sold under Rule 144 under the Securities Act of 1933, as
      amended (“Securities Act”), if available, rather than under this prospectus. The
      selling security holders have the sole and absolute discretion not to accept
      any
      purchase offer or make any sale of shares if they deem the purchase price to
      be
      unsatisfactory at any particular time.

     

    The
      selling security holders may pledge their shares to their brokers under the
      margin provisions of customer agreements. If a selling security holder defaults
      on a margin loan, the broker may, from time to time, offer and sell the pledged
      shares.

     

    Broker-dealers
      engaged by the selling security holders may arrange for other broker-dealers
      to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the selling security holders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated, which
      commissions as to a particular broker or dealer may be in excess of customary
      commissions to the extent permitted by applicable law.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    If
      sales
      of shares offered under this prospectus are made to broker-dealers as
      principals, we would be required to file a post-effective amendment to the
      registration statement of which this prospectus is a part. In the post-effective
      amendment, we would be required to disclose the names of any participating
      broker-dealers and the compensation arrangements relating to such
      sales.

     

    The
      selling security holders and any broker-dealers or agents that are involved
      in
      selling the shares offered under this prospectus may be deemed to be
“underwriters” within the meaning of the Securities Act in connection with these
      sales. Commissions received by these broker-dealers or agents and any profit
      on
      the resale of the shares purchased by them may be deemed to be underwriting
      commissions or discounts under the Securities Act. Any broker-dealers or agents
      that are deemed to be underwriters may not sell shares offered under this
      prospectus unless and until we set forth the names of the underwriters and
      the
      material details of their underwriting arrangements in a supplement to this
      prospectus or, if required, in a replacement prospectus included in a
      post-effective amendment to the registration statement of which this prospectus
      is a part.

     

    The
      selling security holders and any other persons participating in the sale or
      distribution of the shares offered under this prospectus will be subject to
      applicable provisions of the Exchange Act, and the rules and regulations under
      that act, including Regulation M. These provisions may restrict activities
      of,
      and limit the timing of purchases and sales of any of the shares by, the selling
      security holders or any other person. Furthermore, under Regulation M, persons
      engaged in a distribution of securities are prohibited from simultaneously
      engaging in market making and other activities with respect to those securities
      for a specified period of time prior to the commencement of such distributions,
      subject to specified exceptions or exemptions. All of these limitations may
      affect the marketability of the shares.

     

    If
      any of
      the shares of common stock offered for sale pursuant to this prospectus are
      transferred other than pursuant to a sale under this prospectus, then subsequent
      holders could not use this prospectus until a post-effective amendment or
      prospectus supplement is filed, naming such holders. We offer no assurance
      as to
      whether any of the selling security holders will sell all or any portion of
      the
      shares offered under this prospectus.

     

    We
      have
      agreed to pay all fees and expenses we incur incident to the registration of
      the
      shares being offered under this prospectus. However, each selling security
      holder and purchaser is responsible for paying any discounts, commissions and
      similar selling expenses they incur. 

     

    We
      and
      the selling security holders have agreed to indemnify one another against
      certain losses, damages and liabilities arising in connection with this
      prospectus, including liabilities under the Securities Act.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      B

    Selling
      Stockholder Notice and Questionnaire

    

    The
      undersigned understands that Jpak Group, Inc. (the “Company”)
      intends to file with the Securities and Exchange Commission a registration
      statement on Form SB-2 (the “Resale
      Registration Statement”)
      for
      the registration and the resale under Rule 415 of the Securities Act of 1933,
      as
      amended (the “Securities
      Act”),
      of
      the Registrable Securities in accordance with the terms of the Registration
      Rights Agreement entered into by the Company and the undersigned (the
“Agreement”).
      All
      capitalized terms not otherwise defined herein shall have the meanings ascribed
      thereto in the Agreement. 

    

    In
      order
      to sell or otherwise dispose of any Registrable Securities pursuant to the
      Resale Registration Statement, a holder of Registrable Securities generally
      will
      be required to be named as a selling stockholder in the related prospectus
      or a
      supplement thereto (as so supplemented, the “Prospectus”),
      deliver the Prospectus to purchasers of Registrable Securities (including
      pursuant to Rule 172 under the Securities Act) and be bound by the provisions
      of
      the Agreement (including certain indemnification provisions, as described
      below). Holders must complete and deliver this Notice and Questionnaire in
      order
      to be named as selling stockholders in the Prospectus. Holders
      of Registrable Securities who do not complete, execute and return this Notice
      and Questionnaire within five (5) Trading Days following the date of the
      Agreement (1) will not be named as selling stockholders in the Resale
      Registration Statement or the Prospectus and (2) may not use the Prospectus
      for
      resales of Registrable Securities. 

    

    Certain
      legal consequences arise from being named as a selling stockholder in the Resale
      Registration Statement and the Prospectus. Holders of Registrable Securities
      are
      advised to consult their own securities law counsel regarding the consequences
      of being named or not named as a selling stockholder in the Resale Registration
      Statement and the Prospectus. 

    

    NOTICE

     

    The
      undersigned holder (the “Selling
      Stockholder”)
      of
      Registrable Securities hereby gives notice to the Company of its intention
      to
      sell or otherwise dispose of Registrable Securities owned by it and listed
      below
      in Item (3), unless otherwise specified in Item (3), pursuant to the Resale
      Registration Statement. The undersigned, by signing and returning this Notice
      and Questionnaire, understands and agrees that it will be bound by the terms
      and
      conditions of this Notice and Questionnaire and the Agreement. 

    

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate and complete:

    

    QUESTIONNAIRE

     

    1. Name.

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling Stockholder:

            

      	 	 	___________________________________________________________

    

     

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

      	 	 	___________________________________________________________ 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by the
                questionnaire):

            

      	 	 	___________________________________________________________  

    

     

    2.
      Address for Notices to Selling Stockholder:

     

    
      	___________________________________________________________________________
	___________________________________________________________________________ 
	___________________________________________________________________________ 
	 
	
              Telephone:__________________________________________

            
	
              Fax:________________________________________________

            
	
              Contact
                Person:_______________________________________

            
	
              E-mail
                address of Contact
                Person:__________________________

            

    

    

    3.
      Beneficial Ownership of Registrable Securities:

     

    
      	 	
              (a)

            	
              Type
                and Number of Registrable Securities beneficially
                owned:

            

    

    
       

      
        	___________________________________________________________________________
	___________________________________________________________________________ 
	___________________________________________________________________________ 

      

    

     

    
      	 	
              (b)

            	
              Number
                of shares of Common Stock to be registered pursuant to this Notice
                for
                resale:

            

    

    
       

      
        	___________________________________________________________________________
	___________________________________________________________________________ 
	___________________________________________________________________________ 

      

    

     

    4.
      Broker-Dealer Status:

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
o No
o

     

    (b) If
“yes”
      to Section 4(a), did you receive your Registrable Securities as compensation
      for
 investment
      banking services to the Company?

     

    Yes
o No
o

     

    
      	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      	 	
              (c)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes
o No
o

     

    
      	 	
              Note:

            	
              If
                yes, provide a narrative explanation
                below:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (c)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    Yes
o No
o

     

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    5.
      Beneficial Ownership of Other Securities of the Company Owned by the Selling
      Stockholder.

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    Type
      and
      amount of other securities beneficially owned:

     

    ______________________________________________________________________________

     

    ______________________________________________________________________________

     

    6.
      Relationships with the Company:

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

     

    ______________________________________________________________________________

     

    ______________________________________________________________________________

     

     

    7.
      Plan of Distribution:

     

    The
      undersigned has reviewed the form of Plan of Distribution attached as Exhibit
      A
      to the Agreement, and hereby confirms that, except as set forth below, the
      information contained therein regarding the undersigned and its plan of
      distribution is correct and complete.

     

    State
      any
      exceptions here:

     

    
      ______________________________________________________________________________

       

      ______________________________________________________________________________

       

      ***********

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      and prior to the effective date of any applicable Resale Registration Statement.
      All notices hereunder shall be made in writing, by hand delivery, confirmed
      or
      facsimile transmission, first-class mail or air courier guaranteeing overnight
      delivery at the address set forth below. In the absence of any such
      notification, the Company shall be entitled to continue to rely on the accuracy
      of the information in this Notice and Questionnaire.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items (1) through (7) above and the inclusion
      of such information in the Resale Registration Statement and the Prospectus.
      The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of any such Registration
      Statement and the Prospectus.

     

    By
      signing below, the undersigned acknowledges that it understands its obligation
      to comply, and agrees that it will comply, with the provisions of the Exchange
      Act and the rules and regulations thereunder, particularly Regulation M in
      connection with any offering of Registrable Securities pursuant to the Resale
      Registration Statement. The undersigned also acknowledges that it understands
      that the answers to this Questionnaire are furnished for use in connection
      with
      Registration Statements filed pursuant to the Agreement and any amendments
      or
      supplements thereto filed with the Commission pursuant to the Securities
      Act.

    

    The
      undersigned hereby acknowledges and is advised of the following Interpretation
      A.65 of the July 1997 SEC Manual of Publicly Available Telephone Interpretations
      regarding short selling:

    

    “An
      Issuer filed a Form S-3 registration statement for a secondary offering of
      common stock which is not yet effective. One of the selling stockholders wanted
      to do a short sale of common stock “against the box” and cover the short sale
      with registered shares after the effective date. The issuer was advised that
      the
      short sale could not be made before the registration statement become effective,
      because the shares underlying the short sale are deemed to be sold at the time
      such sale is made. There would, therefore, be a violation of Section 5 if the
      shares were effectively sold prior to the effective date.”

    

    By
      returning this Questionnaire, the undersigned will be deemed to be aware of
      the
      foregoing interpretation.

    I
      confirm
      that, to the best of my knowledge and belief, the foregoing statements
      (including without limitation the answers to this Questionnaire) are
      correct.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this
      Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    
      	Dated:_________________________	 	Beneficial
              Owner: _______________
	 	 	 
	 	 	By:__________________________
	 	 	Name: 
	 	 	Title:

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