Document:

exhibit_10-14.htm

    
      

    

    Exhibit
      10.14

    

     

    INVESTOR
      REGISTRATION RIGHTS AGREEMENT

     

    THIS
      REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of
      February _28_, 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 convertible debentures (the “Convertible Debentures”)
      which shall be convertible into that number of shares of the Company’s common
      stock, par value US$.0001 per share (the “Common Stock”), pursuant to the
      terms of the Securities Purchase  Agreement for an aggregate purchase
      price of up to One Million Eight Hundred Thousand U.S.
      Dollars ($1,800,000).  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
      conversion of the Convertible Debentures pursuant to the Securities Purchase
      Agreement and  the Investor’s Shares, as this term is defined in the
      Standby Equity Distribution Agreement dated the date hereof.

     

    

    
      
        
          
          

        

        
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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 Convertible Debentures pursuant to the Securities
      Purchase Agreement 90,000,000 shares of Common Stock, which represents at
      least five (5) times the number of shares which are anticipated to be issued
      upon conversion of the Convertible Debentures issued pursuant to the Securities
      Purchase Agreement and the Investor’s Shares.  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 Convertible 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.

     

    

    
      
        
          
          

        

        
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    (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).

     

    (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.

     

    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.

     

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    (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:

     

    
      	
              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.

     

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

     

     

    (e)           This
      Agreement, the Irrevocable Transfer Agent Instructions, the Securities Purchase
      Agreement and related documents including the Convertible 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
      Convertible 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.

     

    (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]

    

    

    

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    

    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 Jones, Jr

            
	 	
              Name:Charles
                Jones, Jr

            
	 	
              Title:  President,
                CEO

            
	 	 

    

    

    

    

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    

     

    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:                                                      

            	
              and

            
	 	
              Name: Andrew
                Garai

            	
              001-786-323-1651

            
	 	
              Its: Chairman
                of the Board

            	 

    

    

    

    

    

    

    
      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    

    

    

    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_10-15.htm

    
      

    

    Exhibit
      10.15

     

    
      

      SECURITY
        AGREEMENT

       

      THIS
        SECURITY AGREEMENT (the “Agreement”), is
        entered into and made effective as of February 28, 2007, by and between
C-MARK INTERNATIONAL, INC., (the “Company”), and the
BUYER(S) listed on Schedule I attached
        to the Securities
        Purchase Agreement dated the date hereof (the “Secured
        Party”).

       

      WHEREAS,
        the Company shall issue and sell to the Secured Party, as provided
        in
        the Securities Purchase Agreement dated the date hereof, and the Secured
        Party
        shall purchase up to One Million Eight Hundred Thousand Dollars ($1,800,000)
        of
        secured convertible debentures (the “Convertible Debentures”), which
        shall be convertible into shares of the Company’s common stock, par value $.0001
        (the “Common Stock”) (as converted, the “Conversion Shares”), for
        a total purchase price of up to One Million Eight Hundred Thousand
        Dollars ($1,800,000), in the respective amounts set forth opposite each
        Buyer(s) name on Schedule I attached to the Securities Purchase
        Agreement;

       

      WHEREAS,
        to induce the Secured Party to enter into the transaction contemplated
        by the Securities Purchase Agreement, the Secured Convertible Debenture,
        the
        Investor Registration Rights Agreement, the Irrevocable Transfer Agent
        Instructions, and the Escrow Agreement (collectively referred to as the
“Transaction Documents”), the Company hereby grants to the Secured Party
        a security interest in and to the pledged property identified on Exhibit
“A” hereto (collectively referred to as the “Pledged Property”) until
        the satisfaction of the Obligations, as defined herein below.

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants
        herein contained, and for other good and valuable consideration, the adequacy
        and receipt of which are hereby acknowledged, the parties hereto hereby agree
        as
        follows:

       

      ARTICLE
        1.

       

      DEFINITIONS
        AND INTERPRETATIONS

       

      
        	
              	
                Section
                  1.1.

              	
                Recitals.

              

      

       

      The
        above
        recitals are true and correct and are incorporated herein, in their entirety,
        by
        this reference.

       

      
        	
              	
                Section
                  1.2.

              	
                Interpretations.

              

      

       

      Nothing
        herein expressed or implied is intended or shall be construed to confer upon
        any
        person other than the Secured Party any right, remedy or claim under or by
        reason hereof.

       

      
        	
              	
                Section
                  1.3.

              	
                Obligations
                  Secured.

              

      

       

      The
        obligations secured hereby are any and all obligations of the Company now
        existing or hereinafter incurred to the Secured Party, whether oral or written
        and whether arising before, on or after the date hereof including, without
        limitation, those obligations of the Company to the Secured Party under the
        Securities Purchase Agreement, the Secured Convertible Debenture, the Investor
        Registration Rights Agreement and Irrevocable Transfer Agent Instructions,
        and
        any other amounts now or hereafter owed to the Secured Party by the Company
        thereunder or hereunder (collectively, the “Obligations”).

       

      

      
        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

      

       

      ARTICLE
        2.

       

      PLEDGED
        COLLATERAL, ADMINISTRATION OF COLLATERAL

      AND
        TERMINATION OF SECURITY INTEREST

       

      
        	
              	
                Section
                  2.1.

              	
                Pledged
                  Property.

              

      

       

      (a)           Company
        hereby pledges to the Secured Party, and creates in the Secured Party for
        its
        benefit, a security interest for such time until the Obligations are paid
        in
        full, in and to all of the property of the Company as set forth in
Exhibit “A” attached hereto (collectively, the “Pledged
        Property”):

       

      The
        Pledged Property, as set forth in Exhibit “A” attached hereto, and
        the products thereof and the proceeds of all such items are hereinafter
        collectively referred to as the “Pledged Collateral.”

       

      (b)           Simultaneously
        with the execution and delivery of this Agreement, the Company shall make,
        execute, acknowledge, file, record and deliver to the Secured Party any
        documents reasonably requested by the Secured Party to perfect its security
        interest in the Pledged Property.  Simultaneously with the execution
        and delivery of this Agreement, the Company shall make, execute, acknowledge
        and
        deliver to the Secured Party such documents and instruments, including, without
        limitation, financing statements, certificates, affidavits and forms as may,
        in
        the Secured Party’s reasonable judgment, be necessary to effectuate, complete or
        perfect, or to continue and preserve, the security interest of the Secured
        Party
        in the Pledged Property, and the Secured Party shall hold such documents
        and
        instruments as secured party, subject to the terms and conditions contained
        herein.

       

      
        	
              	
                Section
                  2.2.

              	
                Rights;
                  Interests; Etc.

              

      

       

      (a)           So
        long as no Event of Default (as hereinafter defined) shall have occurred
        and be continuing:

       

      (i)           the
        Company shall be entitled to exercise any and all rights pertaining to the
        Pledged Property or any part thereof for any purpose not inconsistent with
        the
        terms hereof; and

       

      (ii)           the
        Company shall be entitled to receive and retain any and all payments paid
        or
        made in respect of the Pledged Property.

       

      (b)           Upon
        the occurrence and during the continuance of an Event of Default:

       

      (i)           All
        rights of the Company to exercise the rights which it would otherwise be
        entitled to exercise pursuant to Section 2.2(a)(i) hereof and to
        receive payments which it would otherwise be authorized to receive and retain
        pursuant to Section 2.2(a)(ii) hereof shall be suspended, and all such
        rights shall thereupon become vested in the Secured Party who shall thereupon
        have the sole right to exercise such rights and to receive and hold as Pledged
        Collateral such payments; provided, however, that if the Secured Party
        shall become entitled and shall elect to exercise its right to realize on
        the
        Pledged Collateral pursuant to Article 5 hereof, then all cash sums
        received by the Secured Party, or held by Company for the benefit of the
        Secured
        Party and paid over pursuant to Section 2.2(b)(ii) hereof, shall be
        applied against any outstanding Obligations; and

       

      

      
        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

      

       

      (ii)           All
        interest, dividends, income and other payments and distributions which are
        received by the Company contrary to the provisions of
        Section 2.2(b)(i) hereof shall be received in trust for the benefit of
        the Secured Party, shall be segregated from other property of the Company
        and
        shall be forthwith paid over to the Secured Party; or

       

      (iii)           The
        Secured Party in its sole discretion shall be authorized to sell any or all
        of
        the Pledged Property at public or private sale in order to recoup all of
        the
        outstanding principal plus accrued interest owed pursuant to the Convertible
        Debenture as described herein

       

      (c)           Each
        of the following events shall constitute a default under this Agreement (each
        an
“Event of Default”):

       

      (i)           any
        default, whether in whole or in part, shall occur in the payment to the Secured
        Party of principal, interest or other item comprising the Obligations as
        and
        when due or with respect to any other debt or obligation of the Company to
        a
        party other than the Secured Party;

       

      (ii)           any
        default, whether in whole or in part, shall occur in the due observance or
        performance of any obligations or other covenants, terms or provisions to
        be
        performed under this Agreement or the Transaction Documents;

       

      (iii)           the
        Company shall:  (1) make a general assignment for the benefit of
        its creditors; (2) apply for or consent to the appointment of a receiver,
        trustee, assignee, custodian, sequestrator, liquidator or similar official
        for
        itself or any of its assets and properties; (3) commence a voluntary case
        for relief as a debtor under the United States Bankruptcy Code; (4) file
        with or otherwise submit to any governmental authority any petition, answer
        or
        other document seeking:  (A) reorganization, (B) an
        arrangement with creditors or (C) to take advantage of any other present or
        future applicable law respecting bankruptcy, reorganization, insolvency,
        readjustment of debts, relief of debtors, dissolution or liquidation;
        (5) file or otherwise submit any answer or other document admitting or
        failing to contest the material allegations of a petition or other document
        filed or otherwise submitted against it in any proceeding under any such
        applicable law, or (6) be adjudicated a bankrupt or insolvent by a court of
        competent jurisdiction; or

       

      (iv)           any
        case, proceeding or other action shall be commenced against the Company for
        the
        purpose of effecting, or an order, judgment or decree shall be entered by
        any
        court of competent jurisdiction approving (in whole or in part) anything
        specified in Section 2.2(c)(iii) hereof, or any receiver, trustee,
        assignee, custodian, sequestrator, liquidator or other official shall be
        appointed with respect to the Company, or shall be appointed to take or shall
        otherwise acquire possession or control of all or a substantial part of the
        assets and properties of the Company, and any of the foregoing shall continue
        unstayed and in effect for any period of thirty (30) days.

       

      

      
        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      

       

      ARTICLE
        3.

       

      ATTORNEY-IN-FACT;
        PERFORMANCE

       

      
        	
              	
                Section
                  3.1.

              	
                Secured
                  Party Appointed
                  Attorney-In-Fact.

              

      

       

      Upon
        the
        occurrence of an Event of Default, the Company hereby appoints the Secured
        Party
        as its attorney-in-fact, with full authority in the place and stead of the
        Company and in the name of the Company or otherwise, from time to time in
        the
        Secured Party’s discretion to take any action and to execute any instrument
        which the Secured Party may reasonably deem necessary to accomplish the purposes
        of this Agreement, including, without limitation, to receive and collect
        all
        instruments made payable to the Company representing any payments in respect
        of
        the Pledged Collateral or any part thereof and to give full discharge for
        the
        same.  The Secured Party may demand, collect, receipt for, settle,
        compromise, adjust, sue for, foreclose, or realize on the Pledged Property
        as
        and when the Secured Party may determine.  To facilitate collection,
        the Secured Party may notify account debtors and obligors on any Pledged
        Property or Pledged Collateral to make payments directly to the Secured
        Party.

       

      
        	
              	
                Section
                  3.2.

              	
                Secured
                  Party May Perform.

              

      

       

      If
        the
        Company fails to perform any agreement contained herein, the Secured Party,
        at
        its option, may itself perform, or cause performance of, such agreement,
        and the
        expenses of the Secured Party incurred in connection therewith shall be included
        in the Obligations secured hereby and payable by the Company under
        Section 8.3.

       

      ARTICLE
        4.

       

      REPRESENTATIONS
        AND WARRANTIES

       

      
        	
              	
                Section
                  4.1.

              	
                Authorization;
                  Enforceability.

              

      

       

      Each
        of
        the parties hereto represents and warrants that it has taken all action
        necessary to authorize the execution, delivery and performance of this Agreement
        and the transactions contemplated hereby; and upon execution and delivery,
        this
        Agreement shall constitute a valid and binding obligation of the respective
        party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
        and similar laws affecting creditors’ rights or by the principles governing the
        availability of equitable remedies.

       

      
        	
              	
                Section
                  4.2.

              	
                Ownership
                  of Pledged Property.

              

      

       

      The
        Company warrants and represents that it is the legal and beneficial owner
        of the
        Pledged Property free and clear of any lien, security interest, option or
        other
        charge or encumbrance except for the security interest created by this
        Agreement.

       

      

      
        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

      

      ARTICLE
        4.2.1.

       

      DEFAULT;
        REMEDIES; SUBSTITUTE COLLATERAL

       

      
        	
              	
                Section
                  4.3.

              	
                Default
                  and Remedies.

              

      

       

      (a)           If
        an Event of Default described in Section 2.2(c)(i) and
        (ii) occurs, then in each such case the Secured Party may declare the
        Obligations to be due and payable immediately, by a notice in writing to
        the
        Company, and upon any such declaration, the Obligations shall become immediately
        due and payable.  If an Event of Default described in
        Sections 2.2(c)(iii) or (iv) occurs and is continuing for the
        period set forth therein, then the Obligations shall automatically become
        immediately due and payable without declaration or other act on the part
        of the
        Secured Party.

       

      (b)           Upon
        the occurrence of an Event of Default, the Secured Party shall: (i) be
        entitled to receive all distributions with respect to the Pledged Collateral,
        (ii) to cause the Pledged Property to be transferred into the name of the
        Secured Party or its nominee, (iii) to dispose of the Pledged Property, and
        (iv) to realize upon any and all rights in the Pledged Property then held
        by the Secured Party.

       

      
        	
              	
                Section
                  4.4.

              	
                Method
                  of Realizing Upon the Pledged Property: Other
                  Remedies.

              

      

       

      Upon
        the
        occurrence of an Event of Default, in addition to any rights and remedies
        available at law or in equity, the following provisions shall govern the
        Secured
        Party’s right to realize upon the Pledged Property:

       

      (a)           Any
        item of the Pledged Property may be sold for cash or other value in any number
        of lots at brokers board, public auction or private sale and may be sold
        without
        demand, advertisement or notice (except that the Secured Party shall give
        the
        Company ten (10) days’ prior written notice of the time and place or
        of the time after which a private sale may be made (the “Sale Notice”)),
        which notice period shall in any event is hereby agreed to be commercially
        reasonable.  At any sale or sales of the Pledged Property, the Company
        may bid for and purchase the whole or any part of the Pledged Property and,
        upon
        compliance with the terms of such sale, may hold, exploit and dispose of
        the
        same without further accountability to the Secured Party.  The Company
        will execute and deliver, or cause to be executed and delivered, such
        instruments, documents, assignments, waivers, certificates, and affidavits
        and
        supply or cause to be supplied such further information and take such further
        action as the Secured Party reasonably shall require in connection with any
        such
        sale.

       

      (b)           Any
        cash being held by the Secured Party as Pledged Collateral and all cash proceeds
        received by the Secured Party in respect of, sale of, collection from, or
        other
        realization upon all or any part of the Pledged Collateral shall be applied
        as
        follows:

       

      (i)           to
        the payment of all amounts due the Secured Party for the expenses reimbursable
        to it hereunder or owed to it pursuant to Section 8.3 hereof;

       

      (ii)           to
        the payment of the Obligations then due and unpaid.

       

      

      
        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

      

      

      (iii)           the
        balance, if any, to the person or persons entitled thereto, including, without
        limitation, the Company.

       

      (c)           In
        addition to all of the rights and remedies which the Secured Party may have
        pursuant to this Agreement, the Secured Party shall have all of the rights
        and
        remedies provided by law, including, without limitation, those under the
        Uniform
        Commercial Code.

       

      (i)           If
        the Company fails to pay such amounts due upon the occurrence of an Event
        of
        Default which is continuing, then the Secured Party may institute a judicial
        proceeding for the collection of the sums so due and unpaid, may prosecute
        such
        proceeding to judgment or final decree and may enforce the same against the
        Company and collect the monies adjudged or decreed to be payable in the manner
        provided by law out of the property of Company, wherever situated.

       

      (ii)           The
        Company agrees that it shall be liable for any reasonable fees, expenses
        and
        costs incurred by the Secured Party in connection with enforcement, collection
        and preservation of the Transaction Documents, including, without limitation,
        reasonable legal fees and expenses, and such amounts shall be deemed included
        as
        Obligations secured hereby and payable as set forth in Section 8.3
        hereof.

       

      
        	
              	
                Section
                  4.5.

              	
                Proofs
                  of Claim.

              

      

       

      In
        case
        of the pendency of any receivership, insolvency, liquidation, bankruptcy,
        reorganization, arrangement, adjustment, composition or other judicial
        proceeding relating to the Company or the property of the Company or of such
        other obligor or its creditors, the Secured Party (irrespective of whether
        the
        Obligations shall then be due and payable as therein expressed or by declaration
        or otherwise and irrespective of whether the Secured Party shall have made
        any
        demand on the Company for the payment of the Obligations), subject to the
        rights
        of Previous Security Holders, shall be entitled and empowered, by intervention
        in such proceeding or otherwise:

       

      (i)           to
        file and prove a claim for the whole amount of the Obligations and to file
        such
        other papers or documents as may be necessary or advisable in order to have
        the
        claims of the Secured Party (including any claim for the reasonable legal
        fees
        and expenses and other expenses paid or incurred by the Secured Party permitted
        hereunder and of the Secured Party allowed in such judicial proceeding),
        and

       

      (ii)           to
        collect and receive any monies or other property payable or deliverable on
        any
        such claims and to distribute the same; and any custodian, receiver, assignee,
        trustee, liquidator, sequestrator or other similar official in any such judicial
        proceeding is hereby authorized by the Secured Party to make such payments
        to
        the Secured Party and, in the event that the Secured Party shall consent
        to the
        making of such payments directed to the Secured Party, to pay to the Secured
        Party any amounts for expenses due it hereunder.

       

      
        	
              	
                Section
                  4.6.

              	
                Duties
                  Regarding Pledged Collateral.

              

      

       

      The
        Secured Party shall have no duty as to the collection or protection of the
        Pledged Property or any income thereon or as to the preservation of any rights
        pertaining thereto, beyond the safe custody and reasonable care of any of
        the
        Pledged Property actually in the Secured Party’s possession.

       

      

      
        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

      

      

       

       

      ARTICLE
        5.

       

      AFFIRMATIVE
        COVENANTS

       

      The
        Company covenants and agrees that, from the date hereof and until the
        Obligations have been fully paid and satisfied, unless the Secured Party
        shall
        consent otherwise in writing (as provided in Section 8.4
        hereof):

       

      
        	
              	
                Section
                  5.1.

              	
                Existence,
                  Properties, Etc.

              

      

       

      (a)           The
        Company shall do, or cause to be done, all things, or proceed with due diligence
        with any actions or courses of action, that may be reasonably necessary
        (i) to maintain Company’s due organization, valid existence and good
        standing under the laws of its state of incorporation, and (ii) to preserve
        and keep in full force and effect all qualifications, licenses and registrations
        in those jurisdictions in which the failure to do so could have a Material
        Adverse Effect (as defined below); and (b) the Company shall not do, or
        cause to be done, any act impairing the Company’s corporate power or authority
        (i) to carry on the Company’s business as now conducted, and (ii) to
        execute or deliver this Agreement or any other document delivered in connection
        herewith, including, without limitation, any UCC-1 Financing Statements required
        by the Secured Party to which it is or will be a party, or perform any of
        its obligations hereunder or thereunder.  For purpose of this
        Agreement, the term “Material Adverse Effect” shall mean any material and
        adverse affect as determined by Secured Party in its sole discretion, whether
        individually or in the aggregate, upon (a) the Company’s assets, business,
        operations, properties or condition, financial or otherwise; (b) the
        Company’s to make payment as and when due of all or any part of the Obligations;
        or (c) the Pledged Property.

       

      
        	
              	
                Section
                  5.2.

              	
                Financial
                  Statements and Reports.

              

      

       

      The
        Company shall furnish to the Secured Party such financial data as the Secured
        Party may reasonably request in writing.  Without limiting the
        foregoing, the Company shall furnish to the Secured Party (or cause to be
        furnished to the Secured Party) the following:

       

      (a)           as
        soon as practicable and in any event within ninety (90) days after the end
        of
        each fiscal year of the Company, the balance sheet of the Company as of the
        close of such fiscal year, the statement of earnings and retained earnings
        of
        the Company as of the close of such fiscal year, and statement of cash flows
        for
        the Company for such fiscal year, all in reasonable detail, prepared in
        accordance with generally accepted accounting principles consistently applied,
        certified by the chief executive and chief financial officers of the Company
        as
        being true and correct and accompanied by a certificate of the chief executive
        and chief financial officers of the Company, stating that the Company has
        kept,
        observed, performed and fulfilled each covenant, term and condition of this
        Agreement during such fiscal year and that no Event of Default hereunder
        has
        occurred and is continuing, or if an Event of Default has occurred and is
        continuing, specifying the nature of same, the period of existence of same
        and
        the action the Company proposes to take in connection therewith;

       

      

      
        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

      

      (b)           within
        thirty (30) days of the end of each calendar month, a balance sheet of the
        Company as of the close of such month, and statement of earnings and retained
        earnings of the Company as of the close of such month, all in reasonable
        detail,
        and prepared substantially in accordance with generally accepted accounting
        principles consistently applied, certified by the chief executive and chief
        financial officers of the Company as being true and correct; and

       

      (c)           promptly
        upon receipt thereof, copies of all accountants' reports and accompanying
        financial reports submitted to the Company by independent accountants in
        connection with each annual examination of the Company.

       

      
        	
              	
                Section
                  5.3.

              	
                Accounts
                  and Reports.

              

      

       

      The
        Company shall maintain a standard system of accounting in accordance with
        generally accepted accounting principles consistently applied and provide,
        at
        its sole expense, to the Secured Party the following:

       

      (a)           as
        soon as available, a copy of any notice or other communication alleging any
        nonpayment or other material breach or default, or any foreclosure or other
        action respecting any material portion of its assets and properties, received
        respecting any of the indebtedness of the Company in excess of $15,000 (other
        than the Obligations), or any demand or other request for payment under any
        guaranty, assumption, purchase agreement or similar agreement or arrangement
        respecting the indebtedness or obligations of others in excess of $15,000,
        including any received from any person acting on behalf of the Secured Party
        or
        beneficiary thereof; and

       

      (b)           within
        fifteen (15) days after the making of each submission or filing, a copy of
        any report, financial statement, notice or other document, whether periodic
        or
        otherwise, submitted to the shareholders of the Company, or submitted to
        or
        filed by the Company with any governmental authority involving or affecting
        (i)
        the Company that could have a Material Adverse Effect; (ii) the
        Obligations; (iii) any part of the Pledged Collateral; or (iv) any of
        the transactions contemplated in this Agreement or the Loan
        Instruments.

       

      
        	
              	
                Section
                  5.4.

              	
                Maintenance
                  of Books and Records;
                  Inspection.

              

      

       

      The
        Company shall maintain its books, accounts and records in accordance with
        generally accepted accounting principles consistently applied, and permit
        the
        Secured Party, its officers and employees and any professionals designated
        by
        the Secured Party in writing, at any time to visit and inspect any of its
        properties (including but not limited to the collateral security described
        in
        the Transaction Documents and/or the Loan Instruments), corporate books and
        financial records, and to discuss its accounts, affairs and finances with
        any
        employee, officer or director thereof.

       

      
        	
              	
                Section
                  5.5.

              	
                Maintenance
                  and Insurance.

              

      

       

      (a)           The
        Company shall maintain or cause to be maintained, at its own expense, all
        of its
        assets and properties in good working order and condition, making all necessary
        repairs thereto and renewals and replacements thereof.

       

      

      
        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

      

      

      (b)           The
        Company shall maintain or cause to be maintained, at its own expense, insurance
        in form, substance and amounts (including deductibles), which the Company
        deems
        reasonably necessary to the Company’s business, (i) adequate to insure all
        assets and properties of the Company, which assets and properties are of
        a
        character usually insured by persons engaged in the same or similar business
        against loss or damage resulting from fire or other risks included in an
        extended coverage policy; (ii) against public liability and other tort
        claims that may be incurred by the Company; (iii) as may be required by the
        Transaction Documents and/or applicable law and (iv) as may be reasonably
        requested by Secured Party, all with adequate, financially sound and reputable
        insurers.

       

      
        	
              	
                Section
                  5.6.

              	
                Contracts
                  and Other Collateral.

              

      

       

      The
        Company shall perform all of its obligations under or with respect to each
        instrument, receivable, contract and other intangible included in the Pledged
        Property to which the Company is now or hereafter will be party on a timely
        basis and in the manner therein required, including, without limitation,
        this
        Agreement.

       

      
        	
              	
                Section
                  5.7.

              	
                Defense
                  of Collateral, Etc.

              

      

       

      The
        Company shall defend and enforce its right, title and interest in and to
        any
        part of:  (a) the Pledged Property; and (b) if not included
        within the Pledged Property, those assets and properties whose loss could
        have a
        Material Adverse Effect, the Company shall defend the Secured Party’s right,
        title and interest in and to each and every part of the Pledged Property,
        each
        against all manner of claims and demands on a timely basis to the full extent
        permitted by applicable law.

       

      
        	
              	
                Section
                  5.8.

              	
                Payment
                  of Debts, Taxes, Etc.

              

      

       

      The
        Company shall pay, or cause to be paid, all of its indebtedness and other
        liabilities and perform, or cause to be performed, all of its obligations
        in
        accordance with the respective terms thereof, and pay and discharge, or cause
        to
        be paid or discharged, all taxes, assessments and other governmental charges
        and
        levies imposed upon it, upon any of its assets and properties on or before
        the
        last day on which the same may be paid without penalty, as well as pay all
        other
        lawful claims (whether for services, labor, materials, supplies or
        otherwise) as and when due

       

      
        	
              	
                Section
                  5.9.

              	
                Taxes
                  and Assessments; Tax Indemnity.

              

      

       

      The
        Company shall (a) file all tax returns and appropriate schedules thereto
        that are required to be filed under applicable law, prior to the date of
        delinquency, (b) pay and discharge all taxes, assessments and governmental
        charges or levies imposed upon the Company, upon its income and profits or
        upon
        any properties belonging to it, prior to the date on which penalties attach
        thereto, and (c) pay all taxes, assessments and governmental charges or
        levies that, if unpaid, might become a lien or charge upon any of its
        properties; provided, however, that the Company in good faith may
        contest any such tax, assessment, governmental charge or levy described in
        the
        foregoing clauses (b) and (c) so long as appropriate reserves are maintained
        with respect thereto.

       

      

      
        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

      

       

      
        	
              	
                Section
                  5.9.1.

              	
                Compliance
                  with Law and Other Agreements.

              

      

       

      The
        Company shall maintain its business operations and property owned or used
        in
        connection therewith in compliance with (a) all applicable federal, state
        and local laws, regulations and ordinances governing such business operations
        and the use and ownership of such property, and (b) all agreements,
        licenses, franchises, indentures and mortgages to which the Company is a
        party
        or by which the Company or any of its properties is bound.  Without
        limiting the foregoing, the Company shall pay all of its indebtedness promptly
        in accordance with the terms thereof.

       

      
        	
              	
                Section
                  5.10.

              	
                Notice
                  of Default.

              

      

       

      The
        Company shall give written notice to the Secured Party of the occurrence
        of any
        default or Event of Default under this Agreement, the Transaction Documents
        or
        any other Loan Instrument or any other agreement of Company for the payment
        of
        money, promptly upon the occurrence thereof.

       

      
        	
              	
                Section
                  5.11.

              	
                Notice
                  of Litigation.

              

      

       

      The
        Company shall give notice, in writing, to the Secured Party of (a) any
        actions, suits or proceedings wherein the amount at issue is in excess of
        $50,000, instituted by any persons against the Company, or affecting any
        of the
        assets of the Company, and (b) any dispute, not resolved within fifteen
        (15) days of the commencement thereof, between the Company on the one hand
        and
        any governmental or regulatory body on the other hand, which might reasonably
        be
        expected to have a Material Adverse Effect on the business operations or
        financial condition of the Company.

       

      ARTICLE
        6.

       

      NEGATIVE
        COVENANTS

       

      The
        Company covenants and agrees that, from the date hereof until the Obligations
        have been fully paid and satisfied, the Company shall not, unless the Secured
        Party shall consent otherwise in writing:

       

      
        	
              	
                Section
                  6.1.

              	
                Indebtedness.

              

      

       

      The
        Company shall not directly or indirectly permit, create, incur, assume, permit
        to exist, increase, renew or extend on or after the date hereof any indebtedness
        on its part, including commitments, contingencies and credit availabilities,
        or
        apply for or offer or agree to do any of the foregoing.

       

      
        	
              	
                Section
                  6.2.

              	
                Liens
                  and Encumbrances.

              

      

       

      The
        Company shall not directly or indirectly make, create, incur, assume or permit
        to exist any assignment, transfer, pledge, mortgage, security interest or
        other
        lien or encumbrance of any nature in, to or against any part of the Pledged
        Property or of the Company’s capital stock, or offer or agree to do so, or own
        or acquire or agree to acquire any asset or property of any character
        subject to any of the foregoing encumbrances (including any conditional sale
        contract or other title retention agreement), or assign, pledge or in any
        way
        transfer or encumber its right to receive any income or other distribution
        or
        proceeds from any part of the Pledged Property or the Company’s capital stock;
        or enter into any sale-leaseback financing respecting any part of the Pledged
        Property  as lessee, or cause or assist the inception or continuation
        of any of the foregoing.

       

      

      
        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

      

      

       

      
        	
              	
                Section
                  6.3.

              	
                Certificate
                  of Incorporation, By-Laws, Mergers, Consolidations, Acquisitions
                  and
                  Sales.

              

      

       

      Without
        the prior express written consent of the Secured Party, the Company shall
        not:  (a) Amend its Certificate of Incorporation or By-Laws; (b)
        issue or sell its stock, stock options, bonds, notes or other corporate
        securities or obligations; (c) be a party to any merger, consolidation or
        corporate reorganization, (d) purchase or otherwise acquire all or
        substantially all of the assets or stock of, or any partnership or joint
        venture
        interest in, any other person, firm or entity, (e) sell, transfer, convey,
        grant a security interest in or lease all or any substantial part of its
        assets,
        nor (f) create any subsidiaries nor convey any of its assets to any
        subsidiary.

       

      
        	
              	
                Section
                  6.4.

              	
                Management,
                  Ownership.

              

      

       

      The
        Company shall not materially change its ownership, executive staff or management
        without the prior written consent of the Secured Party.  The
        ownership, executive staff and management of the Company are material factors
        in
        the Secured Party's willingness to institute and maintain a lending relationship
        with the Company.

       

      
        	
              	
                Section
                  6.5.

              	
                Dividends,
                  Etc.

              

      

       

      The
        Company shall not declare or pay any dividend of any kind, in cash or in
        property, on any class of its capital stock, nor purchase, redeem, retire
        or
        otherwise acquire for value any shares of such stock, nor make any distribution
        of any kind in respect thereof, nor make any return of capital to shareholders,
        nor make any payments in respect of any pension, profit sharing, retirement,
        stock option, stock bonus, incentive compensation or similar plan (except
        as
        required or permitted hereunder), without the prior written consent of the
        Secured Party.

       

      
        	
              	
                Section
                  6.6.

              	
                Guaranties;
                  Loans.

              

      

       

      The
        Company shall not guarantee nor be liable in any manner, whether directly
        or
        indirectly, or become contingently liable after the date of this Agreement
        in
        connection with the obligations or indebtedness of any person or persons,
        except
        for (i) the indebtedness currently secured by the liens identified on the
        Pledged Property identified on Exhibit A hereto and (ii) the endorsement
        of
        negotiable instruments payable to the Company for deposit or collection in
        the
        ordinary course of business.  The Company shall not make any loan,
        advance or extension of credit to any person other than in the normal course
        of
        its business, without the express written consent of the Secured
        Party.

       

      

      
        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

      

       

      
        	
              	
                Section
                  6.6.1.

              	
                Debt.

              

      

       

      The
        Company shall not create, incur, assume or suffer to exist any additional
        indebtedness of any description whatsoever in an aggregate amount in excess
        of
        $25,000 (excluding any indebtedness of the Company to the Secured Party,
        trade
        accounts payable and accrued expenses incurred in the ordinary course of
        business and the endorsement of negotiable instruments payable to the Company,
        respectively for deposit or collection in the ordinary course of business)
        without the express written consent of the Secured Party..

       

      
        	
              	
                Section
                  6.7.

              	
                Conduct
                  of Business.

              

      

       

      The
        Company will continue to engage, in an efficient and economical manner, in
        a
        business of the same general type as conducted by it on the date of this
        Agreement.

       

      
        	
              	
                Section
                  6.8.

              	
                Places
                  of Business.

              

      

       

      The
        location of the Company’s chief place of business is Columbia, South
        Carolina.  The Company shall not change the location of its chief
        place of business, chief executive office or any place of business disclosed
        to
        the Secured Party or move any of the Pledged Property from its current location
        without thirty (30) days' prior written notice to the Secured Party in each
        instance.

       

      ARTICLE
        7.

       

      MISCELLANEOUS

       

      
        	
              	
                Section
                  7.1.

              	
                Notices.

              

      

       

      All
        notices or other communications required or permitted to be given pursuant
        to
        this Agreement shall be in writing and shall be considered as duly given
        on:  (a) the date of delivery, if delivered in person, by
        nationally recognized overnight delivery service or
        (b) five (5) days after mailing if mailed from within the
        continental United States by certified mail, return receipt requested to
        the
        party entitled to receive the same:

       

      
        	 	
                If
                  to the Secured Party:

              	
                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

              
	 	 	 

      

      

      
        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

      

      

      

      
        	 	
                With
                  a copy 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

              
	 	 	 
	 	 	 
	 	
                And
                  if to the Company:

              	
                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

              

      

      

      Any
        party
        may change its address by giving notice to the other party stating its new
        address.  Commencing on the tenth (10th) day after
        the giving of such notice, such newly designated address shall be such party’s
        address for the purpose of all notices or other communications required or
        permitted to be given pursuant to this Agreement.

       

      
        	
              	
                Section
                  7.2.

              	
                Severability.

              

      

       

      If
        any
        provision of this Agreement shall be held invalid or unenforceable, such
        invalidity or unenforceability shall attach only to such provision and shall
        not
        in any manner affect or render invalid or unenforceable any other severable
        provision of this Agreement, and this Agreement shall be carried out as if
        any
        such invalid or unenforceable provision were not contained herein.

       

      
        	
              	
                Section
                  7.3.

              	
                Expenses.

              

      

       

      In
        the
        event of an Event of Default, the Company will pay to the Secured Party the
        amount of any and all reasonable expenses, including the reasonable fees
        and
        expenses of its counsel, which the Secured Party may incur in connection
        with:  (i) the custody or preservation of, or the sale,
        collection from, or other realization upon, any of the Pledged Property;
        (ii) the exercise or enforcement of any of the rights of the Secured Party
        hereunder or (iii) the failure by the Company to perform or observe any of
        the provisions hereof.

       

      

      
        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

      

       

      
        	
              	
                Section
                  7.3.1.

              	
                Waivers,
                  Amendments, Etc.

              

      

       

      The
        Secured Party’s delay or failure at any time or times hereafter to require
        strict performance by Company of any undertakings, agreements or covenants
        shall
        not waiver, affect, or diminish any right of the Secured Party under this
        Agreement to demand strict compliance and performance herewith.  Any
        waiver by the Secured Party of any Event of Default shall not waive or affect
        any other Event of Default, whether such Event of Default is prior or subsequent
        thereto and whether of the same or a different type.  None of the
        undertakings, agreements and covenants of the Company contained in this
        Agreement, and no Event of Default, shall be deemed to have been waived by
        the
        Secured Party, nor may this Agreement be amended, changed or modified, unless
        such waiver, amendment, change or modification is evidenced by an instrument
        in
        writing specifying such waiver, amendment, change or modification and signed
        by
        the Secured Party.

       

      
        	
              	
                Section
                  7.4.

              	
                Continuing
                  Security Interest.

              

      

       

      This
        Agreement shall create a continuing security interest in the Pledged Property
        and shall: (i) remain in full force and effect until payment in full of the
        Obligations; and (ii) be binding upon the Company and its successors and
        heirs and (iii) inure to the benefit of the Secured Party and its
        successors and assigns.  Upon the payment or satisfaction in full of
        the Obligations, the Company shall be entitled to the return, at its expense,
        of
        such of the Pledged Property as shall not have been sold in accordance with
        Section 5.2 hereof or otherwise applied pursuant to the terms
        hereof.

       

      
        	
              	
                Section
                  7.5.

              	
                Independent
                  Representation.

              

      

       

      Each
        party hereto acknowledges and agrees that it has received or has had the
        opportunity to receive independent legal counsel of its own choice and that
        it
        has been sufficiently apprised of its rights and responsibilities with regard
        to
        the substance of this Agreement.

       

      
        	
              	
                Section
                  7.6.

              	
                Applicable
                  Law:  Jurisdiction.

              

      

       

      This
        Agreement shall be governed by and interpreted in accordance with the laws
        of
        the State of Florida without regard to the principles of conflict of
        laws.  The parties further agree that any action between them shall be
        heard in Florida and expressly consent to the jurisdiction and venue of the
        Florida State Court sitting in _Broward County, Florida and the United States
        District Court for the Southern District of Florida for the adjudication
        of any
        civil action asserted pursuant to this Paragraph.

       

      
        	
              	
                Section
                  7.7.

              	
                Waiver
                  of Jury Trial.

              

      

       

      AS
        A
        FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND
        TO
        MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES
        ANY
        RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS
        AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS
        TRANSACTION.

       

      

      
        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

      

       

      
        	
              	
                Section
                  7.7.1.

              	
                Entire
                  Agreement.

              

      

       

      This
        Agreement constitutes the entire agreement among the parties and supersedes
        any
        prior agreement or understanding among them with respect to the subject matter
        hereof.

       

      

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      

       

       

       

      
 

      
        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

      

      

      

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

       

      

      
        	 	
                COMPANY:

              
	 	
                CMARK
                  INTERNATIONAL, INC.

              
	 	 
	 	
                By:  
                  /s/   Charles Jones,
                  Jr             
                                                                  

              
	 	
                Name:     Charles
                  Jones, Jr

              
	 	
                Title:        President,
                  CEO

              
	 	 
	 	 
	 	
                SECURED
                  PARTY:

              
	 	
                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

              

      

      

      

      

      

      

      
        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

      

      

      

       

      EXHIBIT
        A

       

       

      DEFINITION
        OF PLEDGED PROPERTY

       

       

      For
        the
        purpose of securing prompt and complete payment and performance by the Company
        of all of the Obligations, the Company unconditionally and irrevocably hereby
        grants to the Secured Party a continuing security interest in and to, and
        lien
        upon, the following Pledged Property of the Company:

       

       

      (a)           all
        goods of the Company, including, without limitation, machinery, equipment,
        furniture, furnishings, fixtures, signs, lights, tools, parts, supplies and
        motor vehicles of every kind and description, now or hereafter owned by the
        Company or in which the Company may have or may hereafter acquire any interest,
        and all replacements, additions, accessions, substitutions and proceeds thereof,
        arising from the sale or disposition thereof, and where applicable, the proceeds
        of insurance and of any tort claims involving any of the foregoing;

       

       

      (b)           all
        inventory of the Company, including, but not limited to, all goods, wares,
        merchandise, parts, supplies, finished products, other tangible personal
        property, including such inventory as is temporarily out of Company’s custody or
        possession and including any returns upon any accounts or other proceeds,
        including insurance proceeds, resulting from the sale or disposition of any
        of
        the foregoing;

       

       

      (c)           all
        contract rights and general intangibles of the Company, including, without
        limitation, goodwill, trademarks, trade styles, trade names, leasehold
        interests, partnership or joint venture interests, patents and patent
        applications, copyrights, deposit accounts whether now owned or hereafter
        created;

       

       

      (d)           all
        documents, warehouse receipts, instruments and chattel paper of the Company
        whether now owned or hereafter created;

       

       

      (e)           all
        accounts and other receivables, instruments or other forms of obligations
        and
        rights to payment of the Company (herein collectively referred to as
“Accounts”), together with the proceeds thereof, all goods represented by
        such Accounts and all such goods that may be returned by the Company’s
        customers, and all proceeds of any insurance thereon, and all guarantees,
        securities and liens which the Company may hold for the payment of any such
        Accounts including, without limitation, all rights of stoppage in transit,
        replevin and reclamation and as an unpaid vendor and/or lienor, all of which
        the
        Company represents and warrants will be bona fide and existing obligations
        of
        its respective customers, arising out of the sale of goods by the Company
        in the
        ordinary course of business;

       

       

      (f)           to
        the extent assignable, all of the Company’s rights under all present and future
        authorizations, permits, licenses and franchises issued or granted in connection
        with the operations of any of its facilities;

       

       

      (g)           all
        products and proceeds (including, without limitation, insurance proceeds)
        from
        the above-described Pledged Property.

       

       

       A-1

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