Document:

exhibit_10-42.htm

    
      

    

    Exhibit
      10.42

     

    
      

       

      INVESTOR
        REGISTRATION RIGHTS AGREEMENT

       

      THIS
        REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of
        July 13, 2007, by and among C-MARK INTERNATIONAL, INC., a South
        Carolina corporation, with its principal office located at 4130 E. Van Buren,
        Suite 325, Phoenix, AZ 85008 (the “Company”), and the undersigned
        investors (each, an “Investor” and collectively, the
“Investors”).

       

      WHEREAS:

       

      A.           In
        connection with the Securities Purchase Agreement by and among the parties
        hereto of even date herewith (the “Securities Purchase
        Agreement”), the Company has agreed, upon the terms and subject to the
        conditions of the Securities Purchase Agreement, to issue and sell to the
        Investors secured debentures (the “Debentures”), pursuant to the terms of
        the Securities Purchase Agreement providing that the Investor may purchase
        Debentures having up to an aggregate purchase price of up to One Million
        U.S.
        Dollars ($1,000,000).  Capitalized terms not defined herein shall
        have the meaning ascribed to them in the Securities Purchase
        Agreement.

       

      B.           To
        induce the Investors to execute and deliver the Securities Purchase Agreement,
        the Company has agreed to provide certain registration rights under the
        Securities Act of 1933, as amended, and the rules and regulations there under,
        or any similar successor statute (collectively, the “1933 Act”), and
        applicable state securities laws.

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants
        contained herein and other good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, the Company and the Investors
        hereby agree as follows:

       

      1.           DEFINITIONS.

       

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

       

      (a)           “Person”
        means a corporation, a limited liability company, an association, a partnership,
        an organization, a business, an individual, a governmental or political
        subdivision thereof or a governmental agency.

       

      (b)           “Register,”
        “registered,” and “registration” refer to a registration effected
        by preparing and filing one or more Registration Statements (as defined below)
        in compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act
        or
        any successor rule providing for offering securities on a continuous or delayed
        basis (“Rule 415”), and the declaration or ordering of effectiveness of
        such Registration Statement(s) by the United States Securities and Exchange
        SEC
        (the “SEC”).

       

      (c)           “Registrable
        Securities” means the shares of Common Stock issuable to Investors upon
        exercise of the Warrants issued to Investors pursuant to the Securities Purchase
        Agreement.

       

      
        
          
          

        

        
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      (d)           “Registration
        Statement” means a registration statement under the 1933 Act which covers
        the Registrable Securities.

       

      2.           REGISTRATION.

       

      (a)           Subject
        to the terms and conditions of this Agreement, the Company shall prepare
        and
        file, no later than ninety (90) days from the date hereof (the “Scheduled
        Filing Deadline”), with the SEC a registration statement on Form S-1 or SB-2
        (or, if the Company is then eligible, on Form S-3) under the 1933 Act (the
        “Initial Registration Statement”) for the registration for the resale by
        all Investors who purchased Debentures pursuant to the Securities Purchase
        Agreement shares of Common Stock representing at least five (5) times the
        number
        of shares which are anticipated to be issued upon exercise of the Warrants
        issued pursuant to the Securities Purchase Agreement.  The Company
        shall cause the Registration Statement to remain effective until all of the
        Registrable Securities have been sold.  Prior to the filing of the
        Registration Statement with the SEC, the Company shall furnish a copy of
        the
        Initial Registration Statement to the Investors and James G. Dodrill II,
        P.A.
        for their review and comment.  The Investors and James G. Dodrill II,
        P.A. shall furnish comments on the Initial Registration Statement to the
        Company
        by the later of: (a) forty-eight (48) hours of the receipt thereof from the
        Company and (b) the close of the second business day following receipt thereof
        from the Company.

       

      (b)           Effectiveness
        of the Initial Registration Statement.  The Company shall use its
        best its best efforts (i) to have the Initial Registration Statement declared
        effective by the SEC no later than one hundred fifty (150) days after the
        date
        hereof (the “Scheduled Effective Deadline”) and (ii) to insure that the
        Initial Registration Statement and any subsequent Registration Statement
        remains
        in effect until all of the Registrable Securities have been sold, subject
        to the
        terms and conditions of this Agreement.  It shall be an event of
        default hereunder if the Initial Registration Statement is not declared
        effective by the SEC within one hundred twenty (120) days after filing
        thereof.

       

      (c)           Failure
        to File or Obtain Effectiveness of the Registration Statement.  In
        the event the Registration Statement is not filed by the Scheduled Filing
        Deadline or is not declared effective by the SEC on or before the Scheduled
        Effective Date, or if after the Registration Statement has been declared
        effective by the SEC, sales cannot be made pursuant to the Registration
        Statement (whether because of a failure to keep the Registration Statement
        effective, failure to disclose such information as is necessary for sales
        to be
        made pursuant to the Registration Statement, failure to register sufficient
        shares of Common Stock or otherwise then as partial relief for the damages
        to
        any holder of Registrable Securities by reason of any such delay in or reduction
        of its ability to sell the underlying shares of Common Stock (which remedy
        shall
        not be exclusive of any other remedies at law or in equity), the Company
        will
        pay as liquidated damages (the “Liquidated Damages”) to the holder, at
        the holder’s option, either a cash amount or shares of the Company’s Common
        Stock within three (3) business days, after demand therefore, equal to two
        percent (2%) of the liquidated value of the Debentures outstanding as Liquidated
        Damages for each thirty (30) day period after the Scheduled Filing Deadline
        or
        the Scheduled Effective Date as the case may be.

       

      
        
          
          

        

        
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      (d)           Liquidated
        Damages.  The Company and the Investor hereto acknowledge and
        agree that the sums payable under subsection 2(c) above shall constitute
        liquidated damages and not penalties and are in addition to all other rights
        of
        the Investor, including the right to call a default.  The parties
        further acknowledge that (i) the amount of loss or damages likely to be incurred
        is incapable or is difficult to precisely estimate, (ii) the amounts specified
        in such subsections bear a reasonable relationship to, and are not plainly
        or
        grossly disproportionate to, the probable loss likely to be incurred in
        connection with any failure by the Company to obtain or maintain the
        effectiveness of a Registration Statement, (iii) one of the reasons for the
        Company and the Investor reaching an agreement as to such amounts was the
        uncertainty and cost of litigation regarding the question of actual damages,
        and
        (iv) the Company and the Investor are sophisticated business parties and
        have
        been represented by sophisticated and able legal counsel and negotiated this
        Agreement at arm’s length.

       

      3.           RELATED
        OBLIGATIONS.

       

      (a)           The
        Company shall keep the Registration Statement effective pursuant to
        Rule 415 at all times until the date on which the Investor shall have sold
        all the Registrable Securities covered by such Registration Statement (the
        “Registration Period”), which Registration Statement (including any
        amendments or supplements thereto and prospectuses contained therein) shall
        not
        contain any 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
        light of the circumstances in which they were made, not misleading.

       

      (b)           The
        Company shall prepare and file with the SEC such amendments (including
        post-effective amendments) and supplements to a Registration Statement and
        the
        prospectus used in connection with such Registration Statement, which prospectus
        is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may
        be
        necessary to keep such Registration Statement effective at all times during
        the
        Registration Period, and, during such period, comply with the provisions
        of the
        1933 Act with respect to the disposition of all Registrable Securities of
        the
        Company covered by such Registration Statement until such time as all of
        such
        Registrable Securities shall have been disposed of in accordance with the
        intended methods of disposition by the seller or sellers thereof as set forth
        in
        such Registration Statement.  In the case of amendments and
        supplements to a Registration Statement which are required to be filed pursuant
        to this Agreement (including pursuant to this Section 3(b)) by reason of
        the
        Company’s filing a report on Form 10-KSB, Form 10-QSB or Form 8-K or any
        analogous report under the Securities Exchange Act of 1934, as amended (the
        “1934 Act”), the Company shall incorporate such report by reference into
        the Registration Statement, if applicable, or shall file such amendments
        or
        supplements with the SEC on the same day on which the 1934 Act report is
        filed
        which created the requirement for the Company to amend or supplement the
        Registration Statement.

       

      (c)           The
        Company shall furnish to each Investor whose Registrable Securities are included
        in any Registration Statement, without charge, (i) at least one (1) copy
        of such
        Registration Statement as declared effective by the SEC and any amendment(s)
        thereto, including financial statements and schedules, all documents
        incorporated therein by reference, all exhibits and each preliminary prospectus,
        (ii) ten (10) copies of the final prospectus included in such Registration
        Statement and all amendments and supplements thereto (or such other number
of
        copies
        as such Investor may reasonably request in writing) and (iii) such other
        documents as such Investor may reasonably request in writing from time to
        time
        in order to facilitate the disposition of the Registrable Securities owned
        by
        such Investor.

       

      
        
          
          

        

        
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      (d)           The
        Company shall use its best efforts to (i) register and qualify the Registrable
        Securities covered by a Registration Statement under such other securities
        or
“blue sky” laws of such jurisdictions in the United States as any Investor
        reasonably requests, (ii) prepare and file in those jurisdictions, such
        amendments (including post-effective amendments) and supplements to such
        registrations and qualifications as may be necessary to maintain the
        effectiveness thereof during the Registration Period, (iii) take such other
        actions as may be necessary to maintain such registrations and qualifications
        in
        effect at all times during the Registration Period, and (iv) take all other
        actions reasonably necessary or advisable to qualify the Registrable Securities
        for sale in such jurisdictions; provided, however, that the Company shall
        not be
        required in connection therewith or as a condition thereto to (w) make any
        change to its certificate of incorporation or by-laws, (x) qualify to do
        business in any jurisdiction where it would not otherwise be required to
        qualify
        but for this Section 3(d), (y) subject itself to general taxation in any
        such
        jurisdiction, or (z) file a general consent to service of process in any
        such
        jurisdiction.  The Company shall promptly notify each Investor who
        holds Registrable Securities of the receipt by the Company of any notification
        with respect to the suspension of the registration or qualification of any
        of
        the Registrable Securities for sale under the securities or “blue sky” laws of
        any jurisdiction in the United States or its receipt of actual notice of
        the
        initiation or threat of any proceeding for such purpose.

       

      (e)           As
        promptly as practicable after becoming aware of such event or development,
        the
        Company shall notify each Investor in writing of the happening of any event
        as a
        result of which the prospectus included in a Registration Statement, as then
        in
        effect, includes an untrue statement of a material fact or omission to state
        a
        material fact required to be stated therein or necessary to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading (provided that in no event shall such notice contain any material,
        nonpublic information), and promptly prepare a supplement or amendment to
        such
        Registration Statement to correct such untrue statement or omission, and
        deliver
        ten (10) copies of such supplement or amendment to each Investor.  The
        Company shall also promptly notify each Investor in writing (i) when a
        prospectus or any prospectus supplement or post-effective amendment has been
        filed, and when a Registration Statement or any post-effective amendment
        has
        become effective (notification of such effectiveness shall be delivered to
        each
        Investor by facsimile on the same day of such effectiveness), (ii) of any
        request by the SEC for amendments or supplements to a Registration Statement
        or
        related prospectus or related information, and (iii) of the Company’s
        reasonable determination that a post-effective amendment to a Registration
        Statement would be appropriate.

       

      (f)           The
        Company shall use its best efforts to prevent the issuance of any stop order
        or
        other suspension of effectiveness of a Registration Statement, or the suspension
        of the qualification of any of the Registrable Securities for sale in any
        jurisdiction within the United States of America and, if such an order or
        suspension is issued, to obtain the withdrawal of such order or suspension
        at
        the earliest possible moment and to notify each Investor who holds Registrable
        Securities being sold of the issuance of such order and the resolution thereof
        or its receipt of actual notice of the initiation or threat of any proceeding
        for such purpose.

       

      
        
          
          

        

        
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      (g)           At
        the reasonable written request of any Investor, the Company shall furnish
        to
        such Investor, on the date of the effectiveness of the Registration Statement
        and thereafter from time to time on such dates as an Investor may reasonably
        request (i) a letter, dated such date, from the Company’s independent certified
        public accountants in form and substance as is customarily given by independent
        certified public accountants to underwriters in an underwritten public offering,
        and (ii) an opinion, dated as of such date, of counsel representing the Company
        for purposes of such Registration Statement, in form, scope and substance
        as is
        customarily given in an underwritten public offering, addressed to the
        Investors.

       

      (h)           Upon
        written request, the Company shall make available for inspection by (i) any
        Investor and (ii) one (1) firm of accountants or other agents retained by
        the Investors (collectively, the “Inspectors”) all pertinent financial
        and other records, and pertinent corporate documents and properties of the
        Company (collectively, the “Records”), as shall be reasonably deemed
        necessary by each Inspector, and cause the Company’s officers, directors and
        employees to supply all information which any Inspector may reasonably request
        in writing; provided, however, that each Inspector shall agree, and each
        Investor hereby agrees, to hold in strict confidence and shall not make any
        disclosure (except to an Investor) or use  any Record or other
        information which the Company determines in good faith to be confidential,
        and
        of which determination the Inspectors are so notified, unless (a) the disclosure
        of such Records is necessary to avoid or correct a misstatement or omission
        in
        any Registration Statement or is otherwise required under the 1933 Act, (b)
        the
        release of such Records is ordered pursuant to a final, non-appealable subpoena
        or order from a court or government body of competent jurisdiction, or (c)
        the
        information in such Records has been made generally available to the public
        other than by disclosure in violation of this or any other agreement of which
        the Inspector and the Investor has knowledge.  Each Investor agrees
        that it shall, upon learning that disclosure of such Records is sought in
        or by
        a court or governmental body of competent jurisdiction or through other means,
        give prompt notice to the Company and allow the Company, at its expense,
        to
        undertake appropriate action to prevent disclosure of, or to obtain a protective
        order for, the Records deemed confidential.

       

      (i)           The
        Company shall hold in confidence and not make any disclosure of information
        concerning an Investor provided to the Company unless (i) disclosure of such
        information is necessary to comply with federal or state securities laws,
        (ii)
        the disclosure of such information is necessary to avoid or correct a
        misstatement or omission in any Registration Statement, (iii) the release
        of
        such information is ordered pursuant to a subpoena or other final,
        non-appealable order from a court or governmental body of competent
        jurisdiction, or (iv) such information has been made generally available
        to the
        public other than by disclosure in violation of this Agreement or any other
        agreement.  The Company agrees that it shall, upon learning that
        disclosure of such information concerning an Investor is sought in or by
        a court
        or governmental body of competent jurisdiction or through other means, give
        prompt written notice to such Investor and allow such Investor, at the
        Investor’s expense, to undertake appropriate action to prevent disclosure of, or
        to obtain a protective order for, such information.

       

      (j)           The
        Company shall use its best efforts either to cause all the Registrable
        Securities covered by a Registration Statement (i) to be listed on each
        securities exchange on which securities of the same class or series issued
        by
        the Company are then listed, if any, if the listing of such Registrable
        Securities is then permitted under the rules of such exchange or (ii) the
        inclusion for quotation on the National Association of Securities Dealers,
        Inc.
        OTC Bulletin Board for such Registrable Securities.  The Company shall
        pay all fees and expenses in connection with satisfying its obligation under
        this Section 3(j).

       

      
        
          
          

        

        
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      (k)           The
        Company shall cooperate with the Investors who hold Registrable Securities
        being
        offered and, to the extent applicable, to facilitate the timely preparation
        and
        delivery of certificates (not bearing any restrictive legend) representing
        the
        Registrable Securities to be offered pursuant to a Registration Statement
        and
        enable such certificates to be in such denominations or amounts, as the case
        may
        be, as the Investors may reasonably request in writing and registered in
        such
        names as the Investors may request.

       

      (l)           The
        Company shall use its best efforts to cause the Registrable Securities covered
        by the applicable Registration Statement to be registered with or approved
        by
        such other governmental agencies or authorities as may be necessary to
        consummate the disposition of such Registrable Securities.

       

      (m)           The
        Company shall make generally available to its security holders as soon as
        practical, but not later than ninety (90) days after the close of the period
        covered thereby, an earnings statement (in form complying with the provisions
        of
        Rule 158 under the 1933 Act) covering a twelve (12) month period beginning
        not
        later than the first day of the Company’s fiscal quarter next following the
        effective date of the Registration Statement.

       

      (n)           The
        Company shall otherwise use its best efforts to comply with all applicable
        rules
        and regulations of the SEC in connection with any registration
        hereunder.

       

      (o)           Within
        two (2) business days after a Registration Statement which covers Registrable
        Securities is declared effective by the SEC, the Company shall deliver, and
        shall cause legal counsel for the Company to deliver, to the transfer agent
        for
        such Registrable Securities (with copies to the Investors whose Registrable
        Securities are included in such Registration Statement) confirmation that
        such
        Registration Statement has been declared effective by the SEC in the form
        attached hereto as Exhibit A.

       

      (p)           The
        Company shall take all other reasonable actions necessary to expedite and
        facilitate the lawful disposition by the Investors of Registrable Securities
        pursuant to a Registration Statement.

       

      4.           OBLIGATIONS
        OF THE INVESTORS.

       

      Each
        Investor agrees that, upon receipt of any notice from the Company of the
        happening of any event of the kind described in Section 3(f) or the first
        sentence of 3(e), such Investor will immediately discontinue disposition
        of
        Registrable Securities pursuant to any Registration Statement(s) covering
        such
        Registrable Securities until such Investor’s receipt of the copies of the
        supplemented or amended prospectus contemplated by Section 3(e) or receipt
        of
        notice that no supplement or amendment is required.  Notwithstanding
        anything to the contrary, the Company shall cause its transfer agent to deliver
        unlegended certificates for shares of Common Stock to a transferee of an
        Investor in accordance with the terms of the Securities Purchase Agreement
        in
        connection with any sale of Registrable Securities with respect to which
        an
        Investor has entered into a contract for sale prior to the Investor’s receipt of
        a notice from the Company of the happening of any event of the kind described
        in
        Section 3(f) or the first sentence of 3(e) and for which the Investor has
        not
        yet settled.

       

      
        
          
          

        

        
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      5.           EXPENSES
        OF REGISTRATION.

       

      All
        expenses incurred in connection with registrations, filings or qualifications
        pursuant to Sections 2 and 3, including, without limitation, all registration,
        listing and qualifications fees, printers, legal and accounting fees shall
        be
        paid by the Company.

       

      6.           INDEMNIFICATION.

       

      With
        respect to Registrable Securities which are included in a Registration Statement
        under this Agreement:

       

      (a)           To
        the fullest extent permitted by law, the Company will, and hereby does,
        indemnify, hold harmless and defend each Investor, the directors, officers,
        partners, employees, agents, representatives of, and each Person, if any,
        who
        controls any Investor within the meaning of the 1933 Act or the 1934 Act
        (each,
        an “Indemnified Person”), against any losses, claims, damages,
        liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’
fees, amounts paid in settlement or expenses, joint or several (collectively,
        “Claims”) incurred in investigating, preparing or defending any action,
        claim, suit, inquiry, proceeding, investigation or appeal taken from the
        foregoing by or before any court or governmental, administrative or other
        regulatory agency, body or the SEC, whether pending or threatened, whether
        or
        not an indemnified party is or may be a party thereto (“Indemnified
        Damages”), to which any of them may become subject insofar as such Claims
        (or actions or proceedings, whether commenced or threatened, in respect thereof)
        arise out of or are based upon: (i) any untrue statement or alleged untrue
        statement of a material fact in a Registration Statement or any post-effective
        amendment thereto or in any filing made in connection with the qualification
        of
        the offering under the securities or other “blue sky” laws of any jurisdiction
        in which Registrable Securities are offered (“Blue Sky Filing”), or
        the omission or alleged omission to state a material fact required to be
        stated
        therein or necessary to make the statements therein not misleading; (ii)
        any
        untrue statement or alleged untrue statement of a material fact contained
        in any
        final prospectus (as amended or supplemented, if the Company files any amendment
        thereof or supplement thereto with the SEC) or the omission or alleged omission
        to state therein any material fact necessary to make the statements made
        therein, in light of the circumstances under which the statements therein
        were
        made, not misleading; or (iii) any violation or alleged violation by the
        Company
        of the 1933 Act, the 1934 Act, any other law, including, without limitation,
        any
        state securities law, or any rule or regulation there under relating to the
        offer or sale of the Registrable Securities pursuant to a Registration Statement
        (the matters in the foregoing clauses (i) through (iii) being, collectively,
        “Violations”).  The Company shall reimburse the Investors and
        each such controlling person promptly as such expenses are incurred and are
        due
        and payable, for any legal fees or disbursements or other reasonable expenses
        incurred by them in connection with investigating or defending any such
        Claim.  Notwithstanding anything to the contrary contained herein, the
        indemnification agreement contained in this Section 6(a): (x) shall not apply
        to
        a Claim by an Indemnified Person arising out of or based upon a Violation
        which
        occurs in reliance upon and in conformity with information furnished in writing
        to the Company by such Indemnified Person expressly for use in connection
        with
        the preparation of the Registration Statement or any such amendment thereof
        or
        supplement thereto; (y) shall not be available to the extent such Claim is
        based
        on a failure of the Investor to deliver or to cause to be delivered the
        prospectus made available by the Company, if such prospectus was timely made
        available by the Company pursuant to Section 3(c); and (z) shall not apply
        to amounts paid in settlement of any Claim if such settlement is effected
        without the prior written consent of the Company, which consent shall not
        be
        unreasonably withheld. Such indemnity shall remain in full force and effect
        regardless of any investigation made by or on behalf of the Indemnified Person
        and shall survive the transfer of the Registrable Securities by the Investors
        pursuant to Section 9 hereof.

       

      
        
          
          

        

        
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      (b)           In
        connection with a Registration Statement, each Investor agrees to severally
        and
        not jointly indemnify, hold harmless and defend, to the same extent and in
        the
        same manner as is set forth in Section 6(a), the Company, each of its directors,
        each of its officers, employees, representatives, or agents and each Person,
        if
        any, who controls the Company within the meaning of the 1933 Act or the 1934
        Act
        (each an “Indemnified Party”), against any Claim or Indemnified Damages
        to which any of them may become subject, under the 1933 Act, the 1934 Act
        or
        otherwise, insofar as such Claim or Indemnified Damages arise out of or is
        based
        upon any Violation, in each case to the extent, and only to the extent, that
        such Violation occurs in reliance upon and in conformity with written
        information furnished to the Company by such Investor expressly for use in
        connection with such Registration Statement; and, subject to Section 6(d),
        such
        Investor will reimburse any legal or other expenses reasonably incurred by
        them
        in connection with investigating or defending any such Claim; provided, however,
        that the indemnity agreement contained in this Section 6(b) and the agreement
        with respect to contribution contained in Section 7 shall not apply to amounts
        paid in settlement of any Claim if such settlement is effected without the
        prior
        written consent of such Investor, which consent shall not be unreasonably
        withheld; provided, further, however, that the Investor shall be liable under
        this Section 6(b) for only that amount of a Claim or Indemnified Damages
        as does
        not exceed the net proceeds to such Investor as a result of the sale of
        Registrable Securities pursuant to such Registration Statement.  Such
        indemnity shall remain in full force and effect regardless of any investigation
        made by or on behalf of such Indemnified Party and shall survive the transfer
        of
        the Registrable Securities by the Investors pursuant to Section
        9.  Notwithstanding anything to the contrary contained herein, the
        indemnification agreement contained in this Section 6(b) with respect to
        any
        prospectus shall not inure to the benefit of any Indemnified Party if the
        untrue
        statement or omission of material fact contained in the prospectus was corrected
        and such new prospectus was delivered to each Investor prior to such Investor’s
        use of the prospectus to which the Claim relates.

       

      (c)           Promptly
        after receipt by an Indemnified Person or Indemnified Party under this Section
        6
        of notice of the commencement of any action or proceeding (including any
        governmental action or proceeding) involving a Claim, such Indemnified Person
        or
        Indemnified Party shall, if a Claim in respect thereof is to be made against
        any
        indemnifying party under this Section 6, deliver to the indemnifying party
        a
        written notice of the commencement thereof, and the indemnifying party shall
        have the right to participate in, and, to the extent the indemnifying party
        so
        desires, jointly with any other indemnifying party similarly noticed, to
        assume
        control of the defense thereof with counsel mutually satisfactory to the
        indemnifying party and the Indemnified Person or the Indemnified Party, as
        the
        case may be; provided, however, that an Indemnified Person or Indemnified
        Party
        shall have the right to retain its own counsel with the fees and expenses
        of not
        more than one (1) counsel for such Indemnified Person or Indemnified Party
        to be
        paid by the indemnifying party, if, in the reasonable opinion of counsel
        retained by the indemnifying party, the representation by such counsel of
        the
        Indemnified Person or Indemnified Party and the indemnifying party would
        be
        inappropriate due to actual or potential differing  interests between
        such Indemnified Person or Indemnified Party and any other party represented
        by
        such counsel in such proceeding.  The Indemnified Party or Indemnified
        Person shall cooperate fully with the indemnifying party in connection with
        any
        negotiation or defense of any such action or claim by the indemnifying party
        and
        shall furnish to the indemnifying party all information reasonably available
        to
        the Indemnified Party or Indemnified Person which relates to such action
        or
        claim.  The indemnifying party shall keep the Indemnified Party or
        Indemnified Person fully apprised at all times as to the status of the defense
        or any settlement negotiations with respect thereto.  No indemnifying
        party shall be liable for any settlement of any action, claim or proceeding
        effected without its prior written consent; provided, however, that the
        indemnifying party shall not unreasonably withhold, delay or condition its
        consent.  No indemnifying party shall, without the prior written
        consent of the Indemnified Party or Indemnified Person, consent to entry
        of any
        judgment or enter into any settlement or other compromise which does not
        include
        as an unconditional term thereof the giving by the claimant or plaintiff
        to such
        Indemnified Party or Indemnified Person of a release from all liability in
        respect to such claim or litigation.  Following indemnification as
        provided for hereunder, the indemnifying party shall be subrogated to all
        rights
        of the Indemnified Party or Indemnified Person with respect to all third
        parties, firms or corporations relating to the matter for which indemnification
        has been made.  The failure to deliver written notice to the
        indemnifying party within a reasonable time of the commencement of any such
        action shall not relieve such indemnifying party of any liability to the
        Indemnified Person or Indemnified Party under this Section 6, except to the
        extent that the indemnifying party is prejudiced in its ability to defend
        such
        action.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      (d)           The
        indemnification required by this Section 6 shall be made by periodic payments
        of
        the amount thereof during the course of the investigation or defense, as
        and
        when bills are received or Indemnified Damages are incurred.

       

      (e)           The
        indemnity agreements contained herein shall be in addition to (i) any cause
        of action or similar right of the Indemnified Party or Indemnified Person
        against the indemnifying party or others, and (ii) any liabilities the
        indemnifying party may be subject to pursuant to the law.

       

      7.           CONTRIBUTION.

       

      To
        the
        extent any indemnification by an indemnifying party is prohibited or limited
        by
        law, the indemnifying party agrees to make the maximum contribution with
        respect
        to any amounts for which it would otherwise be liable under Section 6 to
        the
        fullest extent permitted by law; provided, however, that:  (i) no
        seller of Registrable Securities guilty of fraudulent misrepresentation (within
        the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
        from any seller of Registrable Securities who was not guilty of fraudulent
        misrepresentation; and (ii) contribution by any seller of Registrable Securities
        shall be limited in amount to the net amount of proceeds received by such
        seller
        from the sale of such Registrable Securities.

       

       

       

       

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      8.           REPORTS
        UNDER THE 1934 ACT.

       

      With
        a
        view to making available to the Investors the benefits of Rule 144 promulgated
        under the 1933 Act or any similar rule or regulation of the SEC that may
        at any
        time permit the Investors to sell securities of the Company to the public
        without registration (“Rule 144”) the Company agrees to:

       

      (a)           make
        and keep public information available, as those terms are understood and
        defined
        in Rule 144;

       

      (b)           file
        with the SEC in a timely manner all reports and other documents required
        of the
        Company under the 1933 Act and the 1934 Act so long as the Company remains
        subject to such requirements (it being understood that nothing herein shall
        limit the Company’s obligations under Section 4(c) of the Securities Purchase
        Agreement) and the filing of such reports and other documents as are required
        by
        the applicable provisions of Rule 144; and

       

      (c)           furnish
        to each Investor so long as such Investor owns Registrable Securities, promptly
        upon written request, (i) a written statement by the Company that it has
        complied with the reporting requirements of Rule 144, the 1933 Act and the
        1934
        Act, (ii) a copy of the most recent annual or quarterly report of the Company
        and such other reports and documents so filed by the Company, and (iii) such
        other information as may be reasonably requested to permit the Investors
        to sell
        such securities pursuant to Rule 144 without registration.

       

      9.           AMENDMENT
        OF REGISTRATION RIGHTS.

       

      Provisions
        of this Agreement may be amended and the observance thereof may be waived
        (either generally or in a particular instance and either retroactively or
        prospectively), only with the written consent of the Company and Investors
        who
        then hold at least two-thirds (2/3) of the Registrable
        Securities.  Any amendment or waiver effected in accordance with this
        Section 9 shall be binding upon each Investor and the
        Company.  No such amendment shall be effective to the extent that it
        applies to fewer than all of the holders of the Registrable
        Securities.  No consideration shall be offered or paid to any Person
        to amend or consent to a waiver or modification of any provision of any of
        this
        Agreement unless the same consideration also is offered to all of the parties
        to
        this Agreement.

       

      10.           MISCELLANEOUS.

       

      (a)           A
        Person is deemed to be a holder of Registrable Securities whenever such Person
        owns or is deemed to own of record such Registrable Securities.  If
        the Company receives conflicting instructions, notices or elections from
        two (2)
        or more Persons with respect to the same Registrable Securities, the Company
        shall act upon the basis of instructions, notice or election received from
        the
        registered owner of such Registrable Securities.

       

      (b)           Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms of this Agreement must be in writing and will be deemed
        to
        have been delivered:  (i) upon receipt, when delivered personally;
        (ii) upon receipt, when sent by facsimile (provided confirmation of transmission
        is mechanically or electronically generated and kept on file by the sending
        party); or (iii) one (1) business day after deposit with a nationally recognized
        overnight delivery service, in each case properly addressed to the party
        to
        receive the same.  The addresses and facsimile numbers for such
        communications shall be:

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      
        	
                If
                  to the Company, to:

              	
                C-Mark
                  International, Inc..

              
	 	
                4130
                  E. Van Buren, Suite 325

              
	 	
                Phoenix,
                  AZ 85008

              
	 	
                Attn:
                  Mr. Charles Jones, CEO

              
	 	
                Telephone:
                  (602) 443-8640

              
	 	
                Facsimile:
                  (602) 443-8646

              
	 	 
	
                With
                  a copy to:

              	
                The
                  O’Neal Law Firm, P.C.

              
	 	
                17100
                  E. Shea Blvd., Suite 400-D

              
	 	
                Fountain
                  Hills, AZ  85268

              
	 	
                Attention:  William
                  D. O’Neal, Esq.

              
	 	
                Telephone:
                  (480) 812-5058

              
	 	
                Facsimile:
                  (480) 816-9241

              
	 	 

      

      If
        to an
        Investor, to its address and facsimile number on the Schedule of Investors
        attached hereto, with copies to such Investor’s representatives as set forth on
        the Schedule of Investors or to such other address and/or facsimile number
        and/or to the attention of such other person as the recipient party has
        specified by written notice given to each other party five (5) days prior
        to the
        effectiveness of such change.  Written confirmation of receipt (A)
        given by the recipient of such notice, consent, waiver or other communication,
        (B) mechanically or electronically generated by the sender’s facsimile machine
        containing the time, date, recipient facsimile number and an image of the
        first
        page of such transmission or (C) provided by a courier or overnight courier
        service shall be rebuttable evidence of personal service, receipt by facsimile
        or receipt from a nationally recognized overnight delivery service in accordance
        with clause (i), (ii) or (iii) above, respectively.

       

      (c)           Failure
        of any party to exercise any right or remedy under this Agreement or otherwise,
        or delay by a party in exercising such right or remedy, shall not operate
        as a
        waiver thereof.

       

      (d)           The
        laws of the State of Florida shall govern all issues concerning the relative
        rights of the Company and the Investors as its stockholders.  All
        other questions concerning the construction, validity, enforcement and
        interpretation of this Agreement shall be governed by the internal laws of
        the
        State of Florida without giving effect to any choice of law or conflict of
        law
        provision or rule (whether of the State of Florida or any other jurisdiction)
        that would cause the application of the laws of any jurisdiction other than
        the
        State of Florida  Each party hereby irrevocably submits to the
        non-exclusive jurisdiction of the State Courts of the State of Florida sitting
        in Broward County, Florida and federal courts for the Southern District of
        Florida for the adjudication of any dispute hereunder or in connection herewith
        or with any transaction contemplated hereby or discussed herein, and hereby
        irrevocably waives, and agrees not to assert in any suit, action or proceeding,
        any claim that it is not personally subject to the jurisdiction of any such
        court, that such suit, action or proceeding is brought in an inconvenient
        forum
        or that the venue of such suit, action or proceeding is
        improper.  Each party hereby irrevocably waives personal service of
        process and consents to process being served in any such suit, action or
        proceeding by mailing a copy thereof to such party at the address for such
        notices to it under this Agreement and agrees that such service shall constitute
        good and sufficient service of process and notice thereof.  Nothing
        contained herein shall be deemed to limit in any way any right to serve process
        in any manner permitted by law.  If any provision of this Agreement
        shall be invalid or unenforceable in any jurisdiction, such invalidity or
        unenforceability shall not affect the validity or enforceability of the
        remainder of this Agreement in that jurisdiction or the validity or
        enforceability of any provision of this Agreement in any other
        jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
        HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
        DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
        OR
        ANY TRANSACTION CONTEMPLATED HEREBY.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      (e)           This
        Agreement, the Irrevocable Transfer Agent Instructions, the Securities Purchase
        Agreement and related documents including the Debenture and the Escrow Agreement
        dated the date hereof by and among the Company, the Investors set forth on
        the
        Schedule of Investors attached hereto, and James G. Dodrill II, P.A. (the
        “Escrow Agreement”) and the Security Agreement dated the date hereof (the
“Security Agreement”) constitute the entire agreement among the parties
        hereto with respect to the subject matter hereof and thereof.  There
        are no restrictions, promises, warranties or undertakings, other than those
        set
        forth or referred to herein and therein.  This Agreement, the
        Irrevocable Transfer Agent Instructions, the Securities Purchase Agreement
        and
        related documents including the Debenture, the Escrow Agreement and the Security
        Agreement supersede all prior agreements and understandings among the parties
        hereto with respect to the subject matter hereof and thereof.

       

      (f)           This
        Agreement shall inure to the benefit of and be binding upon the permitted
        successors and assigns of each of the parties hereto.

       

      (g)           The
        headings in this Agreement are for convenience of reference only and shall
        not
        limit or otherwise affect the meaning hereof.

       

      (h)           This
        Agreement may be executed in identical counterparts, each of which shall
        be
        deemed an original but all of which shall constitute one and the same
        agreement.  This Agreement, once executed by a party, may be delivered
        to the other party hereto by facsimile transmission of a copy of this Agreement
        bearing the signature of the party so delivering this Agreement.

       

      (i)           Each
        party shall do and perform, or cause to be done and performed, all such further
        acts and things, and shall execute and deliver all such other agreements,
        certificates, instruments and documents, as the other party may reasonably
        request in order to carry out the intent and accomplish the purposes of this
        Agreement and the consummation of the transactions contemplated
        hereby.

       

      The
        language used in this Agreement will be deemed to be the language chosen
        by the
        parties to express their mutual intent and no rules of strict construction
        will
        be applied against any party.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      (j)           This
        Agreement is intended for the benefit of the parties hereto and their respective
        permitted successors and assigns, and is not for the benefit of, nor may
        any
        provision hereof be enforced by, any other Person.

       

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      

      

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the parties have caused this Investor Registration
        Rights Agreement to be duly executed as of day and year first above
        written.

       

      
        	 	
                COMPANY:

              
	 	
                CMARK
                  INTERNATIONAL, INC.

              
	 	 
	 	
                By:     /s/
                  Charles W. Jones,
                  Jr.                                              

              
	 	
                Name:     
                  Charles W. Jones, Jr.

              
	 	
                Title:       
                  President

              
	 	 

      

      

      
        	 	
                BUYER:

              
	 	
                TRAFALGAR
                  CAPITAL SPECIALIZED

              
	 	
                INVESTMENT
                  FUND, LUXEMBOURG

              
	 	
                By:           Trafalgar
                  Capital Sarl

              
	 	
                Its:           General
                  Partner

              
	 	 
	 	 
	 	
                By:      /s/ 
                  Andrew
                  Garai                                           

              
	 	
                Name:       Andrew
                  Garai

              
	 	
                Title:         Chairman
                  of the Board

              

      

      

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

       

      SCHEDULE
        I

       

       

      SCHEDULE
        OF INVESTORS

       

      

      
        	
                
                  Name

                

              	
                
                  Signature

                

              	
                
                  Address/Facsimile

                  Number
                    of Buyer

                

              
	 	 	
                8-10
                  Rue Mathias Hardt

              
	
                Trafalgar
                  Capital Specialized

              	
                By:           Trafalgar
                  Capital Sarl

              	
                BP
                  3023

              
	
                Investment
                  Fund,

              	
                Its:           General
                  Partner

              	
                L-1030
                  Luxembourg

              
	
                Luxembourg

              	 	
                Facsimile:

              
	 	 	
                011-44-207-405-0161

              
	 	
                By:    /s/ 
                  Andrew
                  Garai                    
                  

              	
                and

              
	 	
                Name:      Andrew
                  Garai

              	
                001-786-323-1651

              
	 	
                Its:           Chairman
                  of the Board

              	 

      

      

      

      

       

       

      
 

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A

       

      FORM
        OF NOTICE OF EFFECTIVENESS

       

       

      OF
        REGISTRATION STATEMENT

       

      

      Attention:

      

      
        	
                 

              	
                Re:

              	
                C-MARK
                  INTERNATIONAL, INC.

              

      

      

      Ladies
        and Gentlemen:

      

      We
        are
        counsel to C-Mark International, Inc., a South Carolina corporation (the
        “Company”), and have represented the Company in connection with that
        certain Securities Purchase Agreement (the “Securities Purchase
        Agreement”) entered into by and among the Company and the investors named
        therein (collectively, the “Investors”) pursuant to which the Company
        issued to the Investors shares of its Common Stock, par value US$.0001 per
        share
        (the “Common Stock”).  Pursuant to the Purchase Agreement, the
        Company also has entered into a Registration Rights Agreement with the Investors
        (the “Investor Registration Rights Agreement”) pursuant to which the
        Company agreed, among other things, to register the Registrable Securities
        (as
        defined in the Registration Rights Agreement) under the Securities Act of
        1933,
        as amended (the “1933 Act”).  In connection with the Company’s
        obligations under the Registration Rights Agreement, on ____________ ____,
        the
        Company filed a Registration Statement on Form ________ (File
        No. 333-_____________) (the “Registration Statement”) with the
        Securities and Exchange SEC (the “SEC”) relating to the Registrable
        Securities which names each of the Investors as a selling stockholder there
        under.

       

      In
        connection with the foregoing, we advise you that a member of the SEC’s staff
        has advised us by telephone that the SEC has entered an order declaring the
        Registration Statement effective under the 1933 Act at [ENTER TIME OF
        EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we
        have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that
        any stop order suspending its effectiveness has been issued or that any
        proceedings for that purpose are pending before, or threatened by, the SEC
        and
        the Registrable Securities are available for resale under the 1933 Act pursuant
        to the Registration Statement.

       

      Very
        truly yours,

      

      [INSERT
        NAME OF COMPANY COUNSEL]

      

      By:                                                                 

      

      cc:           [LIST
        NAMES OF INVESTORS]

       

       

       

      
        A-1exhibit_10-43.htm

    
      

    

    Exhibit
      10.43

     

    
       

      ESCROW
        AGREEMENT

       

      THIS
        ESCROW AGREEMENT (this “Agreement”) is made and entered into as
        of July 13, 2007 among C-MARK INTERNATIONAL, INC., a South
        Carolina corporation (the “Company”); the Buyer(s) listed on the
        Securities Purchase Agreement, dated the date hereof (also referred to as
        the “Investor(s)”), and JAMES G. DODRILL II, P.A., as
        Escrow Agent hereunder (the “Escrow Agent”).

       

       

      BACKGROUND

       

      WHEREAS,
        the Company and the Investor(s) have entered into a Securities Purchase
        Agreement (the “Securities Purchase Agreement”), dated as of the date
        hereof, pursuant to which the Company proposes to sell secured convertible
        debentures (the “Convertible Debentures”) which shall be convertible into
        the Company’s Common Stock, par value US$.0001 per share (the “Common
        Stock”), at a price per share equal to the Purchase Price, as that term is
        defined in the Convertible Debentures.  The Securities Purchase
        Agreement provides that the Investor(s) shall deposit the purchase amount
        in a
        segregated escrow account to be held by Escrow Agent in order to effectuate
        a
        disbursement to the Company at a closing to be held as set forth in the
        Securities Purchase Agreement (the “Closing”).

       

      WHEREAS,
        the Company intends to sell Convertible Securities (the
“Offering”).

       

      WHEREAS,
        Escrow Agent has agreed to accept, hold, and disburse the funds deposited
        with
        it in accordance with the terms of this Agreement.

       

      WHEREAS,
        in order to establish the escrow of funds and to effect the provisions of
        the
        Securities Purchase Agreement, the parties hereto have entered into this
        Agreement.

       

      NOW
        THEREFORE, in consideration of the foregoing, it is hereby agreed as
        follows:

       

      1.           Definitions.  The
        following terms shall have the following meanings when used herein:

       

      a.           “Escrow
        Funds” shall mean the funds deposited with Escrow Agent pursuant to this
        Agreement.

       

      b.           “Joint
        Written Direction” shall mean a
        written direction executed by the Investor(s) and the
        Company directing Escrow Agent to disburse all or a portion of the Escrow
        Funds
        or to take or refrain from taking any action pursuant to this
        Agreement.

       

      c.           “Escrow
        Period” shall begin with the commencement of the Offering and shall
        terminate upon the earlier to occur of the following dates:

       

      (i)           The
        date upon which Escrow Agent confirms that it has received in the Escrow
        Account
        all of the proceeds of the sale of the Convertible Debentures;

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      (ii)           The
        expiration of twenty (20) days from the date of commencement of the Offering
        (unless extended by mutual written agreement between the Company and the
        Investor(s) with a copy of such extension to Escrow Agent); or

       

      (iii)           The
        date upon which a determination is made by the Company and the Investor(s)
        to
        terminate the Offering prior to the sale of all the Convertible
        Debentures.

       

      During
        the Escrow Period, the Company and the Investor(s) are aware that they are
        not
        entitled to any funds received into escrow and no amounts deposited in the
        Escrow Account shall become the property of the Company or the Investor(s)
        or
        any other entity, or be subject to the debts of the Company or the Investor(s)
        or any other entity.

       

      2.           Appointment
        of and Acceptance by Escrow Agent.  The
        Investor(s) and the Company hereby appoint Escrow Agent to serve as Escrow
        Agent
        hereunder.  Escrow Agent hereby accepts such appointment and, upon
        receipt by wire transfer of the Escrow Funds in accordance with Section 3
        below,
        agrees to hold, invest and disburse the Escrow Funds in accordance with this
        Agreement.

       

      a.           The
        Company hereby acknowledges that the Escrow Agent is counsel to the Investor(s)
        in connection with the transactions contemplated and referred
        herein.  The Company agrees that in the event of any dispute arising
        in connection with this Escrow Agreement or otherwise in connection with
        any
        transaction or agreement contemplated and referred herein, the Escrow Agent
        shall be permitted to continue to represent the Investor(s) and the Company
        will
        not seek to disqualify such counsel.

       

      3.           Creation
        of Escrow Funds.  On or prior to the
        date of the commencement of the Offering, the parties shall establish an
        escrow
        account with the Escrow Agent, which escrow account shall be entitled as
        follows:  C-Mark International, Inc../Trafalgar Capital Specialized
        Investment Fund Escrow Account for the deposit of the Escrow
        Funds.  The Investor(s) will instruct subscribers to wire funds to the
        account of the Escrow Agent as follows:

       

      
        	
                Bank:

              	
                Bank
                  of America

              
	
                Routing
                  #:

              	
                026009583

              
	
                Account
                  #:

              	
                8980
                  0504 8240

              
	
                SWIFT
                  #:

              	
                BOFAUS3N 

              
	
                Name
                  on Account:

              	
                James
                  G. Dodrill II, P.A. as Escrow Agent

              
	
                Name
                  on Sub-Account:

              	
                C-Mark
                  International, Inc./ Trafalgar Capital Specialized Investment Fund
                  Escrow
                  account

              
	 	 

      

      4.           Deposits
        into the Escrow Account.  The
        Investor(s) agrees that they shall promptly deliver funds for the payment
        of the
        Convertible Debentures to Escrow Agent for deposit in the Escrow
        Account.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      5.           Disbursements
        from the Escrow Account.

       

      a.           The
        Escrow Agent will continue to hold such funds until Trafalgar Capital Sarl
        on
        behalf of the Investor(s) and Company execute a Joint Written Direction
        directing the Escrow Agent to disburse the Escrow Funds pursuant to Joint
        Written Direction signed by the Company and the Investor(s).  In
        disbursing such funds, Escrow Agent is authorized to rely upon such Joint
        Written Direction from the Company and the Investor(s) and may accept any
        signatory from the Company listed on the signature page to this Agreement
        and
        any signature from the Investor(s) that the Escrow Agent already has on
        file.

       

      b.           In
        the event Escrow Agent does not receive the amount of the Escrow Funds from
        the
        Investor(s), Escrow Agent shall notify the Company and the
        Investor(s).  Upon receipt of payment instructions from the Company,
        Escrow Agent shall refund to each subscriber without interest the amount
        received from each Investor(s), without deduction, penalty, or expense to
        the
        subscriber.  The purchase money returned to each subscriber shall be
        free and clear of any and all claims of the Company, the Investor(s) or any
        of
        their creditors.

       

      c.           In
        the event Escrow Agent does receive the amount of the Escrow Funds prior
        to
        expiration of the Escrow Period, in no event will the Escrow Funds be released
        to the Company until such amount is received by Escrow Agent in collected
        funds.
        For purposes of this Agreement, the term “collected funds” shall mean all funds
        received by Escrow Agent which have cleared normal banking channels and are
        in
        the form of cash.

       

      6.           Collection
        Procedure.  Escrow Agent is hereby
        authorized to deposit the proceeds of each wire in the Escrow
        Account.

       

      7.           Suspension
        of Performance: Disbursement Into
        Court.  If at any time, there shall
        exist any dispute between the Company and the Investor(s) with respect to
        holding or disposition of any portion of the Escrow Funds or any other
        obligations of Escrow Agent hereunder, or if at any time Escrow Agent is
        unable
        to determine, to Escrow Agent’s sole satisfaction, the proper disposition of any
        portion of the Escrow Funds or Escrow Agent’s proper actions with respect to its
        obligations hereunder, or if the parties have not within thirty (30) days
        of the
        furnishing by Escrow Agent of a notice of resignation pursuant to Section
        9
        hereof, appointed a successor Escrow Agent to act hereunder, then Escrow
        Agent
        may, in its sole discretion, take either or both of the following
        actions:

       

      a.           suspend
        the performance of any of its obligations (including without limitation any
        disbursement obligations) under this Escrow Agreement until such dispute
        or
        uncertainty shall be resolved to the sole satisfaction of Escrow Agent or
        until
        a successor Escrow Agent shall be appointed (as the case may be); provided
        however, Escrow Agent shall continue to invest the Escrow Funds in accordance
        with Section 8 hereof; and/or

       

      b.           petition
        (by means of an interpleader action or any other appropriate method) any
        court
        of competent jurisdiction in any venue convenient to Escrow Agent, for
        instructions with respect to such dispute or uncertainty, and to the extent
        required by law, pay into such court, for holding and disposition in accordance
        with the instructions of such court, all funds held by it in the Escrow Funds,
        after deduction and payment to Escrow Agent of all fees and
        expenses (including court costs and attorneys’ fees) payable to, incurred by, or
        expected to be incurred by Escrow Agent in connection with performance of
        its
        duties and the exercise of its rights hereunder.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      c.           Escrow
        Agent shall have no liability to the Company, the Investor(s), or any person
        with respect to any such suspension of performance or disbursement into court,
        specifically including any liability or claimed liability that may arise,
        or be
        alleged to have arisen, out of or as a result of any delay in the disbursement
        of funds held in the Escrow Funds or any delay in with respect to any other
        action required or requested of Escrow Agent.

       

      8.           Investment
        of Escrow Funds. Escrow Agent shall deposit the
        Escrow Funds in a non-interest bearing account.

       

      If
        Escrow
        Agent has not received a Joint Written Direction at any time that an investment
        decision must be made, Escrow Agent shall maintain the Escrow Funds, or such
        portion thereof, as to which no Joint Written Direction has been received,
        in a
        non-interest bearing account.

       

      9.           Resignation
        and Removal of Escrow Agent.  Escrow
        Agent may resign from the performance of its duties hereunder at any time
        by
        giving thirty (30) days’ prior written notice to the parties or may be removed,
        with or without cause, by the parties, acting jointly, by furnishing a Joint
        Written Direction to Escrow Agent, at any time by the giving of ten (10)
        days’
prior written notice to Escrow Agent as provided herein below.  Upon
        any such notice of resignation or removal, the representatives of the
        Investor(s) and the Company identified in Sections 13a.(iv) and 13b.(iv),
        below,
        jointly shall appoint a successor Escrow Agent hereunder, which shall be
        a
        commercial bank, trust company or other financial institution with a combined
        capital and surplus in excess of US$10,000,000.00.  Upon the
        acceptance in writing of any appointment of Escrow Agent hereunder by a
        successor Escrow Agent, such successor Escrow Agent shall thereupon succeed
        to
        and become vested with all the rights, powers, privileges and duties of the
        retiring Escrow Agent, and the retiring Escrow Agent shall be discharged
        from
        its duties and obligations under this Escrow Agreement, but shall not be
        discharged from any liability for actions taken as Escrow Agent hereunder
        prior
        to such succession.  After any retiring Escrow Agent’s resignation or
        removal, the provisions of this Escrow Agreement shall inure to its benefit
        as
        to any actions taken or omitted to be taken by it while it was Escrow Agent
        under this Escrow Agreement.  The retiring Escrow Agent shall transmit
        all records pertaining to the Escrow Funds and shall pay all funds held by
        it in
        the Escrow Funds to the successor Escrow Agent, after making copies of such
        records as the retiring Escrow Agent deems advisable and after deduction
        and
        payment to the retiring Escrow Agent of all fees and expenses (including
        court
        costs and attorneys’ fees) payable to, incurred by, or expected to be incurred
        by the retiring Escrow Agent in connection with the performance of its duties
        and the exercise of its rights hereunder.

       

      10.           Liability
        of Escrow Agent.

       

      a.           Escrow
        Agent shall have no liability or obligation with respect to the Escrow Funds
        except for Escrow Agent’s willful misconduct or gross
        negligence.  Escrow Agent’s sole responsibility shall be for the
        safekeeping, investment, and disbursement of the Escrow Funds in accordance
        with
        the terms of this Agreement.  Escrow Agent shall have no implied
        duties or obligations and shall not be charged with knowledge or notice or
        any
        fact or circumstance not specifically set forth herein.  Escrow Agent
        may rely upon any instrument, not only as to its due execution, validity
        and
        effectiveness, but also as to the truth and accuracy of any information
        contained herein, which Escrow Agent shall in good faith believe to be genuine,
        to have been signed or presented by the person or parties purporting to sign
        the
        same and conform to the provisions of this Agreement.  In no event
        shall Escrow Agent be liable for incidental, indirect, special, and
        consequential or punitive damages.  Escrow Agent shall not be
        obligated to take any legal action or commence any proceeding in connection
        with
        the Escrow Funds, any account in which Escrow Funds are deposited, this
        Agreement or the Purchase Agreement, or to appear in, prosecute or defend
        any
        such legal action or proceeding.  Escrow Agent may consult legal
        counsel selected by it in any event of any dispute or question as to
        construction of any of the provisions hereof or of any other agreement or
        its
        duties hereunder, or relating to any dispute involving any party hereto,
        and
        shall incur no liability and shall be fully indemnified from any liability
        whatsoever in acting in accordance with the opinion or instructions of such
        counsel.  The Company and the Investor(s) jointly and severally shall
        promptly pay, upon demand, the reasonable fees and expenses of any such
        counsel.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      b.           Escrow
        Agent is hereby authorized, in its sole discretion, to comply with orders
        issued
        or process entered by any court with respect to the Escrow Funds, without
        determination by Escrow Agent of such court’s jurisdiction in the
        matter.  If any portion of the Escrow Funds is at any time attached,
        garnished or levied upon under any court order, or in case the payment,
        assignment, transfer, conveyance or delivery of any such property shall be
        stayed or enjoined by any court order, or in any case any order judgment
        or
        decree shall be made or entered by any court affecting such property or any
        part
        thereof, then and in any such event, Escrow Agent is authorized, in its sole
        discretion, to rely upon and comply with any such order, writ judgment or
        decree
        which it is advised by legal counsel selected by it,  binding upon it,
        without the need for appeal or other action; and if Escrow Agent complies
        with
        any such order, writ, judgment or decree, it shall not be liable to any of
        the
        parties hereto or to any other person or entity by reason of such compliance
        even though such order, writ judgment or decree may be subsequently reversed,
        modified, annulled, set aside or vacated.

       

      11.           Indemnification
        of Escrow Agent.  From and at all times
        after the date of this Agreement, the parties jointly and severally, shall,
        to
        the fullest extent permitted by law and to the extent provided herein, indemnify
        and hold harmless Escrow Agent and each director, officer, employee, attorney,
        agent and affiliate of Escrow Agent (collectively, the “Indemnified
        Parties”) against any and all actions, claims (whether or not valid),
        losses, damages, liabilities, costs and expenses of any kind or nature
        whatsoever (including without limitation reasonable attorney’s fees, costs and
        expenses) incurred by or asserted against any of the Indemnified Parties
        from
        and after the date hereof, whether direct, indirect or consequential, as
        a
        result of or arising from or in any way relating to any claim, demand, suit,
        action, or proceeding (including any inquiry or investigation) by any person,
        including without limitation the parties to this Agreement, whether threatened
        or initiated, asserting a claim for any legal or equitable remedy against
        any
        person under any statute or regulation, including, but not limited to, any
        federal or state securities laws, or under any common law or equitable cause
        or
        otherwise, arising from or in connection with the negotiation, preparation,
        execution, performance or failure of performance of this Agreement or any
        transaction contemplated herein, whether or not any such Indemnified Party
        is a
        party to any such action or proceeding, suit or the target of any such inquiry
        or investigation; provided, however, that no Indemnified Party shall have
        the
        right to be indemnified hereunder for liability finally determined by a court
        of
        competent jurisdiction, subject to no further appeal, to have resulted from
        the
        gross negligence or willful misconduct of such Indemnified Party.  If
        any such action or claim shall be brought or asserted against any Indemnified
        Party, such Indemnified Party shall promptly notify the Company and the
        Investor(s) hereunder in writing, and the Investor(s) and the Company shall
        assume the defense thereof, including the employment of counsel and the payment
        of all expenses.  Such Indemnified Party shall, in its sole
        discretion, have the right to employ separate counsel (who may be selected
        by
        such Indemnified Party in its sole discretion) in any such action and to
        participate and to participate in the defense thereof, and the fees and expenses
        of such counsel shall be paid by such Indemnified Party, except that the
        Investor(s) and/or the Company shall be required to pay such fees and expense
        if
        (a) the Investor(s) or the Company agree to pay such fees and expenses, or
        (b)
        the Investor(s) and/or the Company shall fail to assume the defense of such
        action or proceeding or shall fail, in the sole discretion of such Indemnified
        Party, to employ counsel reasonably satisfactory to the Indemnified Party
        in any
        such action or proceeding, (c) the Investor(s) and the Company
        are  the plaintiff in any such action or proceeding or (d) the named
        or potential parties to any such action or proceeding (including any potentially
        impleaded parties) include both the Indemnified Party, the Company and/or
        the
        Investor(s) and the Indemnified Party shall have been advised by counsel
        that
        there may be one or more legal defenses available to it which are different
        from
        or additional to those available to the Company or the
        Investor(s).  The Investor(s) and the Company shall be jointly and
        severally liable to pay fees and expenses of counsel pursuant to the preceding
        sentence, except that any obligation to pay under clause (a) shall apply
        only to
        the party so agreeing.  All such fees and expenses payable by the
        Company and/or the Investor(s) pursuant to the foregoing sentence shall be
        paid
        from time to time as incurred, both in advance of and after the final
        disposition of such action or claim.  The obligations of the parties
        under this section shall survive any termination of this Agreement, and
        resignation or removal of the Escrow Agent shall be independent of any
        obligation of Escrow Agent.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      The
        parties agree that neither payment by the Company or the Investor(s) of any
        claim by Escrow Agent for indemnification hereunder shall impair, limit,
        modify,
        or affect, as between the Investor(s) and the Company, the respective rights
        and
        obligations of Investor(s), on the one hand, and the Company, on the other
        hand.

       

      12.           Expenses
        of Escrow Agent.  Except as set forth in
        Section 11 the Company shall reimburse Escrow Agent for all of its out-of-pocket
        expenses, including attorneys’ fees, travel expenses, telephone and facsimile
        transmission costs, postage (including express mail and overnight delivery
        charges), copying charges and the like.  All of the compensation and
        reimbursement obligations set forth in this Section shall be payable by the
        Company, upon demand by Escrow Agent.  The obligations of the Company
        under this Section shall survive any termination of this Agreement and the
        resignation or removal of Escrow Agent.

       

      13.           Warranties.

       

      a.           The
        Investor(s) makes the following representations and warranties to Escrow
        Agent:

      
(i)           The
        Investor(s) has full power and authority to execute and deliver this Agreement
        and to perform its obligations hereunder.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (ii)           This
        Agreement has been duly approved by all necessary action of the Investor(s),
        including any necessary approval of the limited partner of the Investor(s)
        or
        necessary corporate approval, as applicable, has been executed by duly
        authorized officers of the Investor(s), enforceable in accordance with its
        terms.

       

      (iii)           The
        execution, delivery, and performance of the Investor(s) of this Agreement
        will
        not violate, conflict with, or cause a default under any agreement of limited
        partnership of Investor(s) or the certificate of incorporation or bylaws
        of the
        Investor(s) (as applicable), any applicable law or regulation, any court
        order or administrative ruling or degree to which the Investor(s) is a party
        or
        any of its property is subject, or any agreement, contract, indenture, or
        other
        binding arrangement.

       

      (iv)           Andrew
        Garai has been duly appointed to act as the representative of the Investor(s)
        hereunder and has full power and authority to execute, deliver, and perform
        this
        Escrow Agreement, to execute and deliver any Joint Written Direction, to
        amend,
        modify, or waive any provision of this Agreement, and to take any and all
        other
        actions as the Investor(s)’s representative under this Agreement, all without
        further consent or direction form, or notice to, the Investor(s) or any other
        party.

       

      (v)           No
        party other than the parties hereto and the Investor(s) have, or shall have,
        any
        lien, claim or security interest in the Escrow Funds or any part
        thereof.  No financing statement under the Uniform Commercial Code is
        on file in any jurisdiction claiming a security interest in or describing
        (whether specifically or generally) the Escrow Funds or any part
        thereof.

       

      (vi)           All
        of the representations and warranties of the Investor(s) contained herein
        are
        true and complete as of the date hereof and will be true and complete at
        the
        time of any disbursement from the Escrow Funds.

       

      b.           The
        Company makes the following representations and warranties to the Escrow
        Agent:

       

      (i)           The
        Company is a corporation duly organized, validly existing,
        and in good standing under the laws of South Carolina and has full power
        and
        authority to execute and deliver this Agreement and to perform its obligations
        hereunder.

       

      (ii)           This
        Agreement has been duly approved by all necessary corporate action of the
        Company, including any necessary shareholder approval, has been executed
        by duly
        authorized officers of the Company, enforceable in accordance with its
        terms.

       

      (iii)           The
        execution, delivery, and performance by the Company of this Agreement is
        in
        accordance with the Securities Purchase Agreement and will not violate, conflict
        with, or cause a default under the certificate of incorporation or bylaws
        of the
        Company, any applicable law or regulation, any court order or administrative
        ruling or decree to which the Company is a party or any of its property is
        subject, or any agreement, contract, indenture, or other binding arrangement,
        including without limitation to the Securities Purchase Agreement, to which
        the
        Company is a party.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      (iv)           Charles
        Jones, Jr. has been duly appointed to act as the representative of the Company
        hereunder and has full power and authority to execute, deliver, and perform
        this
        Agreement, to execute and deliver any Joint Written Direction, to amend,
        modify
        or waive any provision of this Agreement and to take all other actions as
        the
        Company’s Representative under this Agreement, all without further consent or
        direction from, or notice to, the Company or any other party.

       

      (v)           No
        party other than the parties hereto and the Investor(s) have, or shall have,
        any
        lien, claim or security interest in the Escrow Funds or any part
        thereof.  No financing statement under the Uniform Commercial Code is
        on file in any jurisdiction claiming a security interest in or describing
        (whether specifically or generally) the Escrow Funds or any part
        thereof.

       

      (vi)           All
        of the representations and warranties of the Company contained herein are
        true
        and complete as of the date hereof and will be true and complete at the time
        of
        any disbursement from the Escrow Funds.

       

      14.           Consent
        to Jurisdiction and Venue.  In the event
        that any party hereto commences a lawsuit or other proceeding relating to
        or
        arising from this Agreement, the parties hereto agree that the United States
        District Court for the Southern District of Florida shall have the sole and
        exclusive jurisdiction over any such proceeding.  If all such courts
        lack federal subject matter jurisdiction, the parties agree that the State
        Courts of Florida located in Broward_County shall have sole and exclusive
        jurisdiction.  Any of these courts shall be proper venue for any such
        lawsuit or judicial proceeding and the parties hereto waive any objection
        to
        such venue.  The parties hereto consent to and agree to submit to the
        jurisdiction of any of the courts specified herein and agree to accept the
        service of process to vest personal jurisdiction over them in any of these
        courts.

       

      15.           Notice.  All
        notices and other communications hereunder shall be in writing and shall
        be
        deemed to have been validly served, given or delivered five (5) days after
        deposit in the United States mails, by certified mail with return receipt
        requested and postage prepaid, when delivered personally, one (1) day delivered
        to any overnight courier, or when transmitted by facsimile transmission and
        upon
        confirmation of receipt and addressed to the party to be notified as
        follows:

       

      
        	
                If
                  to Investor(s), to:

              	
                Trafalgar
                  Capital Specialized Investment Fund

              
	 	
                8-10
                  Rue Mathias Hardt

              
	 	
                BP
                  3023

              
	 	
                L-1030
                  Luxembourg

              
	 	
                Attention:              Andrew
                  Garai, Chairman of the Board of

              
	 	
                Trafalgar
                  Capital Sarl,
                  General Partner

              
	 	
                Facsimile:               011-44-207-405-0161
                  and

                                                001-786-323-1651

              
	 	 

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      
        	
                If
                  to Escrow Agent, to:

              	
                James
                  G. Dodrill II, P.A.

              
	 	
                5800
                  Hamilton Way

              
	 	
                Boca
                  Raton, FL  33496

              
	 	
                Attention:   James
                  Dodrill Esq.

              
	 	
                Telephone: (561)
                  862-0529

              
	 	
                Facsimile:    (561)
                  892-7787

              
	 	 
	
                If
                  to the Company, to:

              	
                C-Mark
                  International, Inc.

              
	 	
                4130
                  E. Van Buren, Suite 325

              
	 	
                Phoenix,
                  AZ 85008

              
	 	
                Attn:
                  Mr. Charles Jones, CEO

              
	 	
                Telephone:
                  (602) 443-8640

              
	 	
                Facsimile:
                  (602) 443-8646

              
	 	 
	
                With
                  a copy to:

              	
                The
                  O’Neal Law Firm, P.C.

              
	 	
                17100
                  E. Shea Blvd., Suite 400-D

              
	 	
                Fountain
                  Hills, AZ  85268

              
	 	
                Attention:  William
                  D. O’Neal, Esq.

              
	 	
                Telephone:
                  (480) 812-5058

              
	 	
                Facsimile:
                  (480) 816-9241

              
	 	 

      

      Or
        to
        such other address as each party may designate for itself by like
        notice.

       

      16.           Amendments
        or Waiver.  This Agreement may be
        changed, waived, discharged or terminated only by a writing signed by the
        parties hereto.  No delay or omission by any party in exercising any
        right with respect hereto shall operate as waiver.  A waiver on any
        one occasion shall not be construed as a bar to, or waiver of, any right
        or
        remedy on any future occasion.

       

      17.           Severability.  To
        the extent any provision of this Agreement is prohibited by or invalid under
        applicable law, such provision shall be ineffective to the extent of such
        prohibition, or invalidity, without invalidating the remainder of such provision
        or the remaining provisions of this Agreement.

       

      18.           Governing
        Law.  This Agreement shall be construed
        and interpreted in accordance with the internal laws of the State of Florida
        without giving effect to the conflict of laws principles thereof.

       

      19.           Entire
        Agreement.  This Agreement constitutes
        the entire Agreement between the parties relating to the holding, investment,
        and disbursement of the Escrow Funds and sets forth in their entirety the
        obligations and duties of the Escrow Agent with respect to the Escrow
        Funds.

       

      20.           Binding
        Effect.  All of the terms of this
        Agreement, as amended from time to time, shall be binding upon, inure to
        the
        benefit of and be enforceable by the respective heirs, successors and assigns
        of
        the Investor(s), the Company, or the Escrow Agent.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      21.           Execution
        of Counterparts.  This Agreement and any
        Joint Written Direction may be executed in counter parts, which when so executed
        shall constitute one and same agreement or direction.

       

      22.           Termination.  Upon
        the first to occur of the disbursement of all amounts in the Escrow Funds
        pursuant to Joint Written Directions or the disbursement of all amounts in
        the
        Escrow Funds into court pursuant to Section 7 hereof, this Agreement shall
        terminate and Escrow Agent shall have no further obligation or liability
        whatsoever with respect to this Agreement or the Escrow Funds.

       

      

      IN
        WITNESS WHEREOF the parties have hereunto have executed this Escrow
        Agreement as of the date first above written

       

      .

       

      
        	 	
                CMARK
                  INTERNATIONAL, INC.

              
	 	 
	 	
                By:  
                   /s/ Charles W. Jones,
                  Jr.                 
                       

              
	 	
                Name: 
                     Charles W. Jones, Jr.

              
	 	
                Title:    
                    President

              
	 	 
	 	 
	 	
                TRAFALGAR
                  CAPITAL SPECIALIZED

              
	 	
                INVESTMENT
                  FUND, LUXEMBOURG

              
	 	 
	 	
                By:           Trafalgar
                  Capital Sarl

              
	 	
                Its:           General
                  Partner

              
	 	 
	 	
                By:     /s/ 
                  Andrew
                  Garai                                   

              
	 	
                Name:       Andrew
                  Garai

              
	 	
                Title:         Chairman
                  of the Board

              
	 	 
	 	 
	 	
                JAMES
                  G. DODRILL II, P.A.

              
	 	 
	 	
                By:      /s/ 
                  James Dodrill,
                  Esq.                   
                                                               

              
	 	
                Name:        James
                  Dodrill, Esq.

              
	 	
                Title:          Partner

              

      

      
 

       

       

      10

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