Document:

Unassociated Document

    

    STOCK
EXCHANGE

    AND
REORGANIZATION AGREEMENT

    

    THIS STOCK EXCHANGE AND REORGANIZATION
AGREEMENT (together with all Schedules and Exhibits hereto, this “Agreement”),
dated as of October 22, 2009, is entered into by and among Tianwei International
Development Corporation, an Oregon corporation (“TIDC”),
CAOPU Enterprise Limited, a company organized under the laws of the British
Virgin Islands, (“CAOPU”),
London Financial Group Ltd., a company organized under the laws of the British
Virgin Islands (“LFG”),
Phoebus Vision Investment Developing Group Ltd., a company organized under the
laws of the British Virgin Islands (“Phoebus”),
Mobile Presence Technologies, Inc., a Delaware corporation with offices at 51
Belmont Avenue, Northampton, MA 01060  (“MBPI”)
and Timothy Lightman (“TL”).

    

    RECITALS:

    

    WHEREAS, CAOPU, LFG and
Phoebus are the owners of 19,200 (96%), 266 (1.33%) and 534 (2.67%) shares,
respectively, of the issued and outstanding capital stock of TIDC which in the
aggregate constitutes 100% of the issued and outstanding capital stock of
TIDC;

    

    WHEREAS, each of the CAOPU,
LFG and Phoebus desires to sell to MBPI, and MBPI desires to purchase from each
CAOPU, LFG and Phoebus all of the  issued and outstanding shares of
TIDC owned by each of them (the “TIDC
Shares”) in exchange for an aggregate of 1,543,500 shares of MBPI Common
Stock (as defined below) (the “Share
Exchange”);

    

    WHEREAS, TL is the owner of
975,000  shares of MBPI Common Stock (“TL’s  MBPI
Shares”) representing approximately 93% of the total 1,046,500 issued and
outstanding shares of MBPI common stock;

    

    WHEREAS, prior to the Closing,
TL shall deliver to MBPI for cancellation a stock certificate or stock
certificates representing 875,000 of TL’s MBPI Shares (the “Cancellation”);

    

    WHEREAS, MBPI is subject to
the reporting requirements of the Securities and Exchange Commission, pursuant
to Section 15(d) of the Securities and Exchange Act of 1934, as
amended;

    

    WHEREAS, simultaneously with
the Closing, all of the directors and officers of MBPI shall resign and be
replaced by designees of CAOPU;

    

    WHEREAS, prior to or
simultaneously with the Closing, pursuant to a separate Assignment and
Assumption Agreement by and between MBPI and TL, in the substantially the form
annexed as Exhibit
A, MBPI shall sell to TL all of the assets of MBPI and TL shall assume
the liabilities of MBPI;

    

    WHEREAS, immediately following
the Closing (i) MBPI shall own 100% of the issued and outstanding capital stock
of TIDC, (ii) CAOPU shall own 1,481,760 shares 86.4% of the then issued
and outstanding MBPI Common Stock, (iii) LFG shall own 20,529 shares 1.20% of the then
issued and outstanding MBPI Common Stock, and (iv) Phoebus shall own 41,211
shares 2.4% of
the then issued and outstanding MBPI Common Stock;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    NOW, THEREFORE, in
consideration of the mutual covenants, representations, warranties and
agreements hereinafter set forth, and intending to be legally bound hereby, the
parties hereto agree as follows:

     

    ARTICLE
I.

    DEFINITIONS

     

    1.1           Definitions.  When
used in this Agreement, the following terms shall have the meanings set forth
below (such meanings being equally applicable to both the singular and plural
form of the terms defined):

     

    (a)           “Business
Day” means any day other than Saturday, Sunday and any day on which
banking institutions in the United States are authorized by law or other
governmental action to close.

     

    (b)           “Closing”
shall have the meaning set forth in a later section of this
Agreement.

     

    (c)           “Contract”
means any contract, agreement, indenture, lease, conditional sales contract,
license, commitment or other arrangement, whether written or oral.

     

    (d)           
“Exchange
Act” means the Securities and Exchange Act of 1934, as amended, or any
similar federal statute, and the rules and regulations of the SEC thereunder,
all as the same shall be in effect at the time.

     

    (e)           “Forward
Split” shall have the meaning set forth in Section
6.2(g).

     

    (f)           “GAAP”
means generally accepted accounting principles, consistently applied, as in
effect in the United States.

     

    (g)           “Governmental
Authority” means any government or governmental or regulatory,
legislative, executive authority thereof, or commission, department or political
subdivision thereof, whether federal, state, regional, municipal, local or
foreign, or any agency, instrumentality or authority thereof, or any court or
arbitrator (public or private).

     

    (h)           “Indemnified
Party” shall have the meaning set forth in a later section of this
Agreement.

     

    (i)           “Indemnifying
Party” shall have the meaning set forth a later section of this
Agreement.

     

    (j)           “Knowledge”
or “knowledge”
means with respect to any Person, (x) such Person is actually aware of such fact
or matter or (y) such Person should reasonably have been expected to discover or
otherwise become aware of such fact or matter after reasonable investigation,
and for purposes hereof it shall be assumed that such Person has conducted a
reasonable investigation of the accuracy of the representations and warranties
set forth herein.

    
      
         

      

      
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    (k)           “Law”
means any federal, state, county, or local laws, statutes, regulations, rules,
codes, ordinances, Orders, decrees, judgments or injunctions enacted, adopted,
issued or promulgated by any Governmental Authority, from time to
time.

     

    (l)           “Liability”
means any liability or obligation of whatever kind or nature (whether known or
unknown, whether asserted or unasserted, whether absolute or contingent, whether
accrued or unaccrued, whether liquidated or unliquidated, and whether due or to
become due), including any liability for Taxes.

     

    (m)           “Lien”
means any mortgage, deed of trust, pledge, lien, claim, security interest,
covenant, restriction, easement, preemptive right, or any other encumbrance or
charge of any kind including, without limitation, any conditional sale or other
title retention agreement, any lease in the nature thereof, and any lien or
charge arising by statute or other law.

     

    (n)           “Loss”
or “Losses”
means any and all liability, damages, fines, fees, penalties and expenses
whether or not arising out of litigation, including without limitation,
interest, reasonable expenses of investigation, court costs, reasonable
out-of-pocket fees and expenses of attorneys, accountants and other experts or
other reasonable out-of-pocket expenses of litigation or other legal
proceedings, incurred in connection with the rightful enforcement of rights
under this Agreement against any Party hereto, and whether or not arising out of
third party claims against an Indemnified Party.

     

    (o)           “MBPI
Business and Assets” means the MBPI business as conducted immediately
prior to the Closing and the assets used in connection therewith and excludes
the TIDC Shares.

     

    (p)           “MBPI
Common Stock” means the common stock of MBPI, having a par value of
$0.0001 per share.

     

    (q)           “MBPI
Shares” means the 1,543,500 shares of MBPI Common Stock to be issued to
CAOPU, LFG and Phoebus collectively in the Share Exchange.

     

    (r)           “Order”
means any order, injunction, judgment, decree, ruling, writ, assessment or
arbitration award (in each such case whether preliminary or final).

     

    (s)           “Party”
means any of TIDC, CAOPU, LFG, Phoebus, MBPI or TL individually.

     

    (t)           “Parties”
means TIDC, CAOPU, LFG, Phoebus, MBPI and TL collectively.

    
      
         

      

      
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    (u)           “Person”
means any individual, corporation, partnership, limited liability company, firm,
joint venture, association, joint-stock company, trust, unincorporated
organization, Governmental Authority or other entity.

     

    (v)           “Purchase
Right” with respect to any Person means any security, right,
subscription, warrant, option or other Contract that gives the right to purchase
or otherwise receive or be issued any shares of capital stock or other equity
interests of such Person or any security of any kind convertible into or
exchangeable or exercisable for any shares of capital stock or other equity
interests of such Person.

     

    (w)           “SCAC”
means Shandong Caopu Arts & Crafts Co., Ltd., a company organized under the
laws of the People’s Rebublic of China.

     

    (x)           “SEC”
means the United States Securities and Exchange Commission.

     

    (y)           “Securities
Act” means the Securities Act of 1933, as amended, or any similar federal
statute, and the rules and regulations of the SEC thereunder, all as the same
shall be in effect at the time.

     

    (z)           “Share
Exchange” has the meaning set forth in the Recitals of this
Agreement.

     

    (aa)           “Tax”
means any and all taxes, charges, fees, levies or other assessments, including,
without limitation, local and/or foreign income, net worth, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium,
windfall profits, environmental, customs duties, share capital, franchise,
profits, withholding, social security (or similar), unemployment, disability,
real property, personal property, sales, use, service, service use, transfer,
registration, recording, ad-valorem, value-added, alternative or add-on minimum,
estimated, or other taxes, assessments or charges of any kind whatsoever,
including any interest, penalty, or addition thereto, whether disputed or
not.

     

    (bb)           “Tax
Return” means any return, report or similar statement required to be
filed with respect to any Tax (including any attached schedules), including,
without limitation, any information return, claim for refund, amended return or
declaration of estimated Tax.

     

    (cc)           “Transaction
Documents” means this Agreement and all other agreements, documents,
instruments or certificates delivered in connection with this
Agreement.

     

    (dd)           “TIDC
Shares” means the 20,000 issued and outstanding shares of capital stock
of TIDC owned by CAOPU, LFG and Phoebus.

     

    1.2         Recitals.  The
above Recitals are hereby incorporated by reference into this Agreement as if
fully stated herein.

    
      
         

      

      
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    1.3         Construction and
Interpretation.

     

    (a)           Unless
the context of this Agreement otherwise requires, (i) words of any gender
include the other gender; (ii) words using the singular or plural number also
include the plural or singular number, respectively; (iii) the terms “hereof,”
“herein,”
“hereby”
and derivative or similar words refer to this entire Agreement; (iv) the terms
“Article”
or “Section”
refer to the specified Article or Section of this Agreement; (v) the word “including”
does not imply any limitation to the item or matter mentioned; and (vi) the
phrases “ordinary
course of business” and “ordinary
course of business consistent with past practice” refer to the businesses
and practices of MBPI, TIDC, SCAC and CAOPU.

     

    (b)           All
accounting terms used herein and not expressly defined herein shall have the
meanings given to them under GAAP.

     

    (c)           All
dollar amounts shall be in U.S. dollars.

     

    ARTICLE
II.

    SHARE
EXCHANGE; REORGANIZATION

     

    2.1         Share
Exchange.  Subject to the terms and conditions of this
Agreement, on the Closing Date:

     

    (a)           CAOPU,
LFG and Phoebus shall sell, assign, transfer, convey, and deliver to MBPI, all
of the TIDC Shares owned by each of them as set forth on Schedule
2.1(a) attached hereto, and MBPI shall purchase from CAOPU, LFG and
Phoebus all of the TIDC Shares; and

     

    (b)           MBPI
shall issue to each of CAOPU, LFG and Phoebus in exchange for the TIDC Shares
that number of MBPI Shares as set forth opposite each of their names on Schedule
2.1(a) attached hereto.

     

    2.2         Assignment and Assumption
Agreement.  Simultaneously with or immediately following the
Closing, pursuant to the Assignment and Assumption Agreement by and between MBPI
and TL, MBPI shall assign to TL all of the MBPI Assets and Business (excluding
the TIDC Shares), and TL shall assume all of the MBPI Liabilities outstanding
immediately prior to the Closing (the “Asset
Sale”).

     

    ARTICLE
III.

    REPRESENTATIONS
AND WARRANTIES OF CAOPU AND TIDC

    

    CAOPU and
TIDC, jointly and severally, represent and warrant to MBPI and TL as
follows:

     

    3.1         Ownership of
TIDC.  CAOPU holds of record and owns beneficially the TIDC
Shares set forth opposite its name on Schedule
2.1(a) hereto free and clear of any restrictions on transfer (other than
any restrictions under applicable state or federal securities laws), Taxes,
Liens, options, warrants, Purchase Rights, contracts, commitments, equities,
claims, and demands.  CAOPU is not a party to any option, warrant,
Purchase Right, or other contract or commitment (other than this Agreement) that
could require CAOPU to sell, transfer, or otherwise dispose of any TIDC Shares.
CAOPU is not a party to any voting trust, proxy, or other agreement or
understanding with respect to the voting of any capital stock of
TIDC.  There are no outstanding stock appreciation, phantom stock,
profit participation, or similar rights with respect to TIDC. There are no
voting trusts, proxies, or other agreements or understandings with respect to
the voting of any capital stock of TIDC. CAOPU has the power, authority and
legal capacity to sell, transfer, assign and deliver the TIDC Shares as provided
in this Agreement, and such delivery will convey to MBPI good and marketable
title to the TIDC Shares, free and clear of all Liens.

    
      
         

      

      
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    3.2         Valid Corporate Existence;
Qualification - CAOPU.  CAOPU is duly organized, validly
existing and in good standing under the laws of the British Virgin Islands and
has all requisite power and authority to own, lease, use and operate its
properties and assets and to carry on its business as and in the jurisdictions
such properties and assets are owned, leased, used and operated and as such
business is presently conducted.  CAOPU is duly qualified, licensed,
authorized or admitted to do business and is in good standing under the laws of
each jurisdiction in which the ownership, use, operation or leasing of its
properties and assets, or the conduct or nature of its business, requires such
qualification, licensing, authorization or admission.  CAOPU has
delivered to MBPI true and complete copies of CAOPU’s Memorandum and Articles of
Association and such other constituent instruments of CAOPU as may exist, each
as amended to the date of this Agreement (as so amended, the “CAOPU
Constituent Instruments”).  The copies of the CAOPU Constituent
Instruments attached hereto as Schedule
3.2, are true, complete and correct.

     

    3.3         Valid Corporate Existence;
Qualification - TIDC.  TIDC is duly organized, validly existing
and in good standing under the laws of the State of Oregon and has all requisite
power and authority to own, lease, use and operate its properties and assets and
to carry on its business as and in the jurisdictions such properties and assets
are owned, leased, used and operated and as such business is presently
conducted.  TIDC is duly qualified, licensed, authorized or admitted
to do business and is in good standing under the laws of each jurisdiction in
which the ownership, use, operation or leasing of its properties and assets, or
the conduct or nature of its business, requires such qualification, licensing,
authorization or admission.  CAOPU has delivered to MBPI true and
complete copies of TIDC’ certificate of incorporation  and bylaws and
such other constituent instruments of TIDC as may exist, each as amended to the
date of this Agreement (as so amended, the “TIDC
Constituent Instruments”).  The copies of the TIDC Constituent
Instruments attached hereto as Schedule
3.3, are true, complete and correct.

     

    3.4         Valid Corporate Existence;
Qualification – SCAC.  SCAC is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation.  SCAC has all requisite power and authority to own,
lease, use and operate its properties and assets and to carry on the business in
which it is engaged as and in the jurisdictions such properties and assets are
owned, leased, used and operated and as such business is presently
conducted.  SCACis duly qualified, licensed, authorized or admitted to
do business and is in good standing under the laws of each jurisdiction in which
the ownership, use, operation or leasing of its properties and assets, or the
conduct or nature of its business, requires such qualification, licensing,
authorization or admission.  CAOPU has delivered to MBPI true and
complete copies of each of the SCAC charter documents and such other constituent
instruments of  SCAC as may exist, each as amended to the date of this
Agreement (as so amended, the “SCACConstituent
Instruments”).  The copies of the SCAC Constituent Instruments
attached hereto as Schedule
3.4, are true, complete and correct.

    
      
         

      

      
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    3.5         Authority;
Enforceability.  CAOPU and TIDC each have full power, authority
and legal capacity to enter into this Agreement and the other Transaction
Documents to which they are a party and to perform their obligations hereunder
and thereunder.  The execution, delivery and performance of this
Agreement and the other Transaction Documents and the consummation of the
transactions contemplated hereby and thereby have been duly and validly
authorized and approved by all required actions of CAOPU’s board of directors
and stockholders and no other actions on the part of CAOPU’s board of directors
or stockholders are necessary to authorize and approve this Agreement and the
other Transaction Documents and the transactions contemplated hereby and
thereby.  This Agreement has been duly executed and delivered by CAOPU
and TIDC and constitutes valid and binding obligations of CAOPU and TIDC,
enforceable against each of them in accordance with its terms. At Closing, all
other Transaction Documents to be executed and delivered by CAOPU and/or TIDC
shall have been duly executed and delivered by CAOPU and/or TIDC.  All
other Transaction Documents executed and delivered by CAOPU and/or TIDC shall
constitute valid and binding obligations of CAOPU and/or TIDC, enforceable
against each of them in accordance with their terms.

     

    3.6         Capitalization of
TIDC. The authorized capital stock of TIDC consists solely of common
shares, of which 20,000 are issued and outstanding.  Upon the Closing,
MBPI will own one hundred (100%) percent of the issued and outstanding capital
stock of TIDC.  All of the TIDC Shares have been duly authorized and
validly issued and are fully paid and non-assessable.  All of the
issued and outstanding capital stock of TIDC has been issued in compliance with
all applicable Law. There are no outstanding Purchase Rights with respect to the
capital stock of TIDC or agreements, arrangements or understandings to issue
Purchase Rights with respect to the capital stock of TIDC, nor are there any
preemptive rights or agreements, arrangements or understandings to issue
preemptive rights with respect to the issuance or sale of the capital stock of
TIDC.  TIDC does not control, directly or indirectly, or have any
direct or indirect equity participation in any corporation, partnership, trust,
or other business association that is not a TIDC Subsidiary.

     

    3.7         Capitalization of
SCAC.  Schedule
3.7 attached hereto sets forth for SCAC (i) its name and jurisdiction of
incorporation, (ii) the number of authorized shares for each class of its
capital stock, (iii) the number of issued and outstanding shares of each class
of its capital stock, the names of the holders thereof, and the number of shares
held by each such holder, and (iv) the number of shares of its capital stock
held in treasury. All of the issued and outstanding shares of capital stock of
SCAC have been duly authorized and are validly issued, fully paid, and
non-assessable.  All of the issued and outstanding shares of capital
stock of SCAC have been issued in compliance with all applicable
Law.  Except as set forth on Schedule
3.7, TIDC holds of record and owns beneficially all of the outstanding
shares of SCAC, free and clear of any restrictions on transfer (other than
restrictions under applicable state or federal securities laws), Taxes, Liens,
options, warrants, Purchase Rights, contracts, commitments, equities, claims,
and demands. There are no outstanding or authorized options, warrants, Purchase
Rights, or other contracts or commitments that could require any of TIDC and
SCAC to sell, transfer, or otherwise dispose of any capital stock of SCAC or
that could require SCAC to issue, sell, or otherwise cause to become outstanding
any of its own capital stock. There are no outstanding stock appreciation,
phantom stock, profit participation, or similar rights with respect to SCAC.
There are no voting trusts, proxies, or other agreements or understandings with
respect to the voting of any capital stock of SCAC. Neither TIDC nor SCAC
controls directly or indirectly or has any direct or indirect equity
participation in any corporation, partnership, trust, or other business
association.  Neither TIDC nor SCAC owns or has any right to acquire,
directly or indirectly, any outstanding capital stock of, or other equity
interests in, any Person.

    
      
         

      

      
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    3.8         No
Conflicts.  Neither the execution and delivery by CAOPU and
TIDC of this Agreement and the other Transaction Documents, the consummation of
the transactions contemplated hereby or thereby, nor compliance by CAOPU and
TIDC with any of the provisions hereof or thereof (a) conflict with, or result
in the breach of, any provision of either of the CAOPU Constituent
Instruments, the TIDC Constituent Instruments or the SCAC Constituent
Instruments, (b) conflict with, violate, result in the breach or termination of,
or constitute a default or give rise to any right of termination or acceleration
or right to increase the obligations or otherwise modify the terms thereof under
any material Permit or any Order to which either TIDC, CAOPU, or SCAC is a party
or any material Contract to which TIDC, CAOPU, or SCAC or any of their
respective properties or assets is bound, (c) constitute a violation of any Law
applicable to CAOPU, TIDC or SCAC or (d) result in the creation of any Lien upon
the properties or assets of CAOPU, TIDC or SCAC.

     

    3.9         Consents.  Other
than those which have been obtained by CAOPU and/or TIDC, no consent, waiver,
approval, Order, Permit or authorization of, or declaration or filing with, or
notification to, any Person or Governmental Authority (collectively, “Consents”)
is required on the part of CAOPU or TIDC to enable each of them to enter into
and deliver this Agreement or the Transaction Documents, and to carry out all of
the transactions contemplated hereby or thereby or the compliance by CAOPU and
TIDC with any of the provisions hereof or thereof.

     

    3.10       Purchase Entirely for Own
Account.  The MBPI Shares proposed to be acquired by CAOPU
hereunder will be acquired for investment for its own account, and not with a
view to the resale or distribution of any part thereof, and CAOPU has no present
intention of selling or otherwise distributing MBPI Shares, except in compliance
with applicable securities laws.

     

    3.11       Non-Registration.
CAOPU understands that the MBPI Shares have not been registered under the
Securities Act and, if issued in accordance with the provisions of this
Agreement, will be issued by reason of a specific exemption from the
registration provisions of the Securities Act which depends upon, among other
things, the bona fide nature of the investment intent and the accuracy of
CAOPU’s representations as expressed herein.

     

    3.12       Accredited
Investor.  CAOPU is an “accredited investor” within the meaning
of Rule 501 under the Securities Act and was not organized for the specific
purpose of acquiring MBPI Shares.

     

    3.13    
  Officers
and Directors.  Schedule
3.11 attached hereto sets forth a true and correct list of the officers
and directors of TIDC and SCAC.

    
      
         

      

      
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    3.14       Financial Information.
    Attached hereto as Schedule 3.12 are the
following financial statements of SCAC (collectively, the “SCAC
Financial Statements”): (i) the audited financial statements of SCAC as
at and for the year ended December 31, 2008 and 2007 (“SCAC
Audited Financial Statements”) which have been audited by Bongiovanni
& Associates, and (ii) the unaudited interim financial statements of SCAC as
at and for the period ended June 30, 2009 (“SCAC
Interim Financial Statements”).   The SCAC Financial
Statements (including the notes thereto) have been prepared in accordance with
GAAP throughout the periods covered thereby, are true accurate and complete and
contain all adjustments and disclosures required under GAAP.

     

    3.15       Events Subsequent to SCAC
Audited Financial Statements. Since the date of the SCAC Audited
Financial Statements, there has not been any change that would be (or could
reasonably be expected to be) materially adverse to the business, assets,
condition (financial or otherwise), or operations of SCAC. Without limiting the
generality of the foregoing, since that date:

     

    (a)           neither
TIDC nor SCAC, has sold, leased, transferred, or assigned any of its assets,
tangible or intangible, other than for a fair consideration in the ordinary
course of business;

     

    (b)           neither
TIDC nor SCAC has entered into any agreement, contract, lease, or license (or
series of related agreements, contracts, leases, and licenses) either involving
more than $100,000 or outside the ordinary course of business;

     

    (c)           no
party has accelerated, terminated, modified, or cancelled any agreement,
contract, lease, or license (or series of related agreements, contracts, leases,
and licenses) involving more than $100,000 to which TIDC or SCAC is a party or
by which it is bound;

     

    (d)           neither
TIDC nor SCAC has imposed any Liens upon any of its assets, tangible or
intangible;

     

    (e)           neither
TIDC nor SCAC has made any capital expenditure (or series of related capital
expenditures) either involving more than $100,000 or outside the ordinary course
of business;

     

    (f)           neither
TIDC nor SCAC has made any capital investment in, any loan to, or any
acquisition of the securities or assets of, any other Person (or series of
related capital investments, loans, and acquisitions) either involving more than
$$100,000 or outside the ordinary course of business;

     

    (g)           neither
TIDC nor SCAC has issued any note, bond, or other debt security or created,
incurred, assumed, or guaranteed any indebtedness for borrowed money or
capitalized lease obligation either involving more than $$100,000 singly or
$500,000 in the aggregate;

     

    (h)           neither
TIDC nor SCAC has delayed or postponed the payment of accounts payable and other
Liabilities outside the ordinary course of business;

     

    
      
         

      

      
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    (i)           neither
TIDC nor SCAC has cancelled, compromised, waived, or released any right or claim
(or series of related rights and claims) either involving more than $$100,000 or
outside the ordinary course of business;

     

    (j)           neither
TIDC nor SCAC has transferred, assigned, or granted any license or sublicense of
any rights under or with respect to any of its intellectual
property;

     

    (k)           there
has been no change made or authorized in the TIDC Constituent Instruments or the
SCAC Constituent Instruments;

     

    (l)           neither
TIDC nor SCAC has issued, sold, or otherwise disposed of any of its capital
stock, or granted any options, warrants, or other rights to purchase or obtain
(including upon conversion, exchange, or exercise) any of its capital
stock;

     

    (m)           neither
TIDC nor SCAC has declared, set aside, or paid any dividend or made any
distribution with respect to its capital stock (whether in cash or in kind) or
redeemed, purchased, or otherwise acquired any of its capital
stock;

     

    (n)           neither
TIDC nor SCAC has experienced any damage, destruction, or loss (whether or not
covered by insurance) to its property;

     

    (o)           neither
TIDC nor SCAC has made any loan to, or entered into any other transaction with,
any of its directors, officers, and employees outside the ordinary course of
business;

     

    (p)           neither
TIDC nor SCAC has entered into or terminated any employment contract or
collective bargaining agreement, written or oral, or modified the terms of any
existing such contract or agreement;

     

    (q)           neither
TIDC nor SCAC has granted any increase in the base compensation of any of its
directors, officers, and employees outside the ordinary course of
business;

     

    (r)           neither
TIDC nor SCAC has adopted, amended, modified, or terminated any bonus, profit
sharing, incentive, severance, or other plan, contract, or commitment for the
benefit of any of its directors, officers, and employees (or taken any such
action with respect to any other employee benefit plan);

     

    (s)           neither
TIDC nor SCAC has made any other change in employment terms for any of its
directors, officers, and employees outside the ordinary course of
business;

     

    (t)           there
has not been any other occurrence, event, incident, action, failure to act, or
transaction outside the ordinary course of business involving TIDC or any of the
TIDC Subsidiaries;

     

    (u)           neither
TIDC nor SCAC has discharged a material Liability or Lien outside the ordinary
course of business;

     

    
      
         

      

      
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    (v)           neither
TIDC nor SCAC has made any loans or advances of money;

     

    (w)           neither
TIDC nor SCAC has committed to any of the foregoing.

     

    3.16       Undisclosed
Liabilities. Neither TIDC nor SCAC has any Liability (and there is no
basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against any of them giving
rise to any Liability), except for (i) Liabilities fully reflected or reserved
against in the SCAC Financial Statements and (ii) Liabilities that have arisen
after the date of the SCAC Interim Financial Statements in the ordinary course
of business (none of which results from, arises out of, relates to, is in the
nature of, or was caused by any breach of contract, breach of warranty, tort,
infringement, or violation of law).

     

    3.17       Taxes. TIDC and SCAC
have filed all federal, state and local Tax Returns which are required to be
filed by each of them.  Since their inception, neither TIDC nor SCAC
has incurred any liability for Taxes except in the ordinary course of
business.  TIDC and SCAC have paid or provided adequate reserves for
all Taxes which have become due for all periods prior to the date of this
Agreement or pursuant to any assessments received by it or which either TIDC or
SCAC is obligated to withhold from amounts owing to any employee, creditor or
other third party as at or with respect to any period prior to the date of this
Agreement. The federal income Tax Returns of TIDC and SCAC have never been
audited by any taxing authority.  Neither TIDC nor SCAC has waived any
statute of limitations in respect of Taxes, nor agreed to any extension of time
with respect to a Tax assessment or deficiency.

     

    3.18       Environmental
Matters. Neither TIDC nor SCAC (i) is in violation of any statute, rule,
regulation, decision or order of any governmental agency or body or any court,
domestic or foreign, relating to the use, disposal or release of hazardous or
toxic substances or relating to the protection or restoration of the environment
or human exposure to hazardous or toxic substances (collectively, “Environmental
Laws”), (ii) owns or operates any real property contaminated with any
substance that is in violation of any Environmental Laws, (iii) is liable for
any off-site disposal or contamination pursuant to any Environmental Laws, and
(iv) is subject to any claim relating to any Environmental Laws; which
violation, contamination, liability or claim has had or could reasonably be
expected to have a material adverse effect, individually or in the aggregate on
TIDC and/or SCAC; and there is no pending or, to CAUPO’s, TIDC or SCAC’s
knowledge, threatened investigation that might lead to such a
claim.

     

    ARTICLE
IV.

    REPRESENTATIONS
AND WARRANTIES OF MBPI AND TL

    

    MBPI and
TL jointly and severally represent and warrant to CAOPU and TIDC as
follows:

    
      
         

      

      
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    4.1         Valid Corporate Existence;
Qualification.  MBPI is duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all requisite
power and authority to own, lease, use and operate its properties and assets and
to carry on its business as and in the jurisdictions such properties and assets
are owned, leased, used and operated and as such business is presently
conducted.  MBPI is duly qualified, licensed, authorized or admitted
to do business and is in good standing under the laws of each jurisdiction in
which the ownership, use, operation or leasing of its properties and assets, or
the conduct or nature of its business, requires such qualification, licensing,
authorization or admission.  MBPI has delivered to CAOPU true and
complete copies of MBPI’s certificate  of incorporation and bylaws and
such other constituent instruments of MBPI as may exist, each as amended to the
date of this Agreement (as so amended, the “MBPI
Constituent Instruments”).  The copies of the MBPI Constituent
Instruments attached hereto as Schedule
4.1, are true, complete and correct.

     

    4.2         Authority;
Enforceability.  MBPI and TL each have full power, authority
and legal capacity to enter into this Agreement and the other Transaction
Documents to which they are a party and to perform their respective obligations
hereunder and thereunder.  The execution, delivery and performance of
this Agreement and the other Transaction Documents and the consummation of the
transactions contemplated hereby and thereby have been duly and validly
authorized and approved by all required actions of MBPI’s board of directors and
stockholders and no other actions on the part of MBPI’s board of directors or
stockholders are necessary to authorize and approve this Agreement and the other
Transaction Documents and the transactions contemplated hereby and
thereby.  This Agreement has been duly executed and delivered by MBPI
and TL, and constitutes valid and binding obligations of MBPI and TL,
enforceable against each of them in accordance with its terms. At Closing, all
other Transaction Documents to be executed and delivered by MBPI and TL shall
have been duly executed and delivered by MBPI and TL.  All other
Transaction Documents executed and delivered by MBPI and TL shall constitute
valid and binding obligations of MBPI and TL, enforceable against each of them
in accordance with their terms.

     

    4.3         Capitalization. MBPI
has authorized (i) 20,000,000 shares of common stock, par value $0.0001 per
share, and (ii) 1,000,000 shares of preferred stock, par value $0.0001 per share
of which as of the date hereof 1,046,500 shares of MBPI Common Stock are issued
and outstanding and owned by the shareholders of record set forth in Schedule
4.3 (which list will be updated as of the Closing Date by a faxed
certified shareholder list from MBPI’s transfer agent) (“MBPI
Shareholders List”).  Upon the Closing, MBPI shall have
1,715,500 shares of Common Stock issued and outstanding.  No shares of
preferred stock have been designated or are issued or outstanding. MBPI has no
outstanding options, warrants, rights, calls, Purchase Rights and/or other
direct and/or indirect commitments or agreement to issue any other securities of
MBPI. All of the issued and outstanding shares of MBPI Common Stock are duly
authorized and validly issued and outstanding, fully paid and non assessable.
All of the issued and outstanding MBPI Common Stock has been issued in
compliance with all applicable Law. Except for the MBPI Shares to be issued to
CAOPU at the Closing pursuant to the terms of this Agreement, there are no
subscriptions, options, warrants, rights or calls, Purchase Rights or other
commitments or agreements to which MBPI is a party or by which any of its
officers, controlling shareholders and/or directors, or to MBPI’s best knowledge
any of its affiliates is bound regarding the issuance, transfer, or sale or
other disposition of any class of securities of MBPI, nor are there any
preemptive rights or agreements, arrangements or understandings to issue
preemptive rights with respect to the issuance or sale of MBPI Common
Stock.

     

    4.4         TL’s MBPI
Shares.  TL holds of record and owns beneficially 975,000
shares of MBPI Common Stock and after giving effect to the Cancellation TL shall
hold of record and beneficially own 100,000 shares of MBPI Common
Stock.  Other than the 975,000 shares of MBPI Common Stock owned by
TL, TL owns no equity securities of MBPI.

     

    
      
         

      

      
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    4.5         Subsidiaries. There
are no subsidiaries, corporations, partnerships or other business entities
controlled, directly or indirectly, by MBPI.

     

    4.6         Real
Property.  MBPI owns no real property.

     

    4.7         No
Conflicts.  Neither the execution and delivery by MBPI of this
Agreement and the other Transaction Documents, the consummation of the
transactions contemplated hereby or thereby, nor compliance by MBPI with any of
the provisions hereof or thereof (a) conflict with, or result in the breach of,
any provision of the MBPI Constituent Instruments, (b) conflict with, violate,
result in the breach or termination of, or constitute a default or give rise to
any right of termination or acceleration or right to increase the obligations or
otherwise modify the terms thereof under any material Permit or any Order to
which MBPI is a party or any material Contract to which MBPI or any of its
properties or assets is bound, (c) constitute a violation of any Law applicable
to MBPI or (d) result in the creation of any Lien upon the properties or assets
of MBPI.

     

    4.8         Consents.  Other
than those which have been obtained by MBPI and TL, no Consent is required on
the part of TL or MBPI in connection with the execution and delivery of this
Agreement or the Transaction Documents, or the compliance by TL and MBPI with
any of the provisions hereof or thereof.

     

    4.9         Litigation, Compliance with
Law. There are no actions, suits, proceedings, or governmental
investigations (or any investigation of any self regulatory organization)
relating to MBPI, its securities or to any of its properties, assets or business
pending or, to the best of its knowledge, threatened, or any order, injunction,
award or decree outstanding against MBPI or against or relating to any of its
properties, assets or business. MBPI is not, to the best of its knowledge, in
violation of any law, regulation, ordinance, order, injunction, decree, award or
other requirements of any Governmental Authority relating to its properties,
assets or business.

     

    4.10       Agreements and Obligations;
Performance.  MBPI is not a party to, or bound by any: (i)
Contract, arrangement, commitment or understanding which involves aggregate
payments or receipts in excess of $5,000; (ii) contractual obligation or
contractual liability of any kind to any MBPI stockholder; (iii) Contract,
arrangement, commitment or understanding with its customers or any officer,
employee, stockholder, director, representative or agent thereof for the
repurchase of products, sharing of fees, the rebating of charges to such
customers, bribes, kickbacks from such customers or other similar arrangements;
(iv) contract for the purchase or sale of any materials, products or supplies
which contain, or which commits or will commit it for a fixed term; (v) contract
of employment with any officer or employee not terminable at will without
penalty or premium or any continuing obligation of liability; (vi) deferred
compensation, bonus or incentive plan or agreement not cancelable at will
without penalty or premium or any continuing obligation or liability: (vii)
management or consulting agreement not terminable at will without penalty or
premium or any continuing obligation or liability; (viii) lease for real or
personal property (including borrowings thereon), license or royalty agreement;
(ix) union or other collective bargaining agreement; (x) agreement, commitment
or understanding relating to the indebtedness for borrowed money; (xi) contract
involving aggregate payments or receipts of $5,000 or more which, by its terms,
requires the consent of any party thereto to the consummation of the
transactions contemplated by this Agreement and the other Transaction Documents;
(xii) contract containing covenants limiting the freedom of MBPI to engage or
compete in any line of business or with any person in any geographic area;
(xiii) contract or opinion relating to the acquisition or sale of any business;
(xiv) voting trust agreement or similar stockholders’ agreement; (xiv) other
contract, agreement, commitment or understanding which materially affects any of
its properties, assets or business, whether directly or indirectly, or which was
entered into other than in the ordinary course of business.

     

    
      
         

      

      
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    4.11       Permits and Licenses.
MBPI is in compliance in all material respects with all requirements, standards
and procedures of the federal, state, local and foreign governmental bodies
which issued such permits, licenses, orders, franchises and
approvals.

     

    4.12       Employees; Employee Benefit
Plans. Except for TL, MBPI has no employees.  MBPI does not
maintain any employee benefit plans and is not required to make contributions to
any “pension” and “welfare” benefit plans (within the respective meanings of
Section 4(2) and Section 4(1) of the Employee Retirement Income Security Act of
1974, as amended).

     

    4.13       SEC Reports. MBPI has
filed in a timely manner with the SEC all reports required to be filed pursuant
to the Exchange Act (the “SEC
Reports”) and is “current” in its reporting obligations.  As of
their respective dates, the SEC Reports comply in all material respects with
requirements of the Securities Act and Exchange Act and the rules and
regulations promulgated thereunder and none of the SEC Reports contained an
untrue statement of 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.

     

    4.14       Financial Statements.
The financial statements of MBPI included in the SEC Reports (including in each
case the related notes thereto) (the “MBPI
Financial Statements”) (i) are in accordance with the books and records
of MBPI, (ii) are correct and complete in all material respects, (iii) present
fairly the financial position and results of operations of MBPI as of the
respective dates indicated (subject, in the case of unaudited statements, to
normal, recurring adjustments, none of which were material) and (iv) have been
prepared in accordance with GAAP.

     

    4.15       Officers and
Directors. TL is the sole officer and director of MBPI.  Schedule
4.15 attached hereto sets forth a true and correct list of the officers
and directors of MBPI after the Closing.

     

    4.16       Taxes. MBPI has filed
all federal, state and local Tax Returns which are required to be filed by
it.  Since its inception, MBPI has not incurred any liability for
Taxes except in the ordinary course of business.  MBPI has paid or
provided adequate reserves for all Taxes which have become due for all periods
prior to the date of this Agreement or pursuant to any assessments received by
it or which MBPI is obligated to withhold from amounts owing to any employee,
creditor or other third party as at or with respect to any period prior to the
date of this Agreement. The federal income Tax Returns of MBPI have never been
audited by the Internal Revenue Service.  MBPI has not waived any
statute of limitations in respect of Taxes, nor agreed to any extension of time
with respect to a Tax assessment or deficiency.

     

    
      
         

      

      
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    4.17       Undisclosed
Liabilities. MBPI has no Liabilities (and there is no basis for any
present or future action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand against any of them giving rise to any Liability),
except for (i) Liabilities fully reflected or reserved against in the Financial
Statements and (ii) Liabilities that have arisen after the date of MBPI’s
unaudited balance sheet as of June 30, 2009 (the “Most
Recent Balance Sheet”) in the ordinary course of business (none of which
results from, arises out of, relates to, is in the nature of, or was caused by
any breach of contract, breach of warranty, tort, infringement, or violation of
law).

     

    4.18       Absence of Certain
Events. Since its inception, MBPI has been conducted solely in the usual
and ordinary course. Without limiting the generality of the foregoing, MBPI has
not:

     

    (a)           waived
any right or rights of substantial value or paid, directly or indirectly, any
Liability before such Liability became due in accordance with its
terms;

     

    (b)           other
than in the ordinary and usual course of business, created any Liability
(whether absolute or contingent and whether or not currently due and payable),
or entered into or assumed any contract, agreement, arrangement, lease (as
lessor or lessee), license or other commitment otherwise than in the ordinary
and usual course of business; or

     

    (c)           purchased,
sold or transferred any assets other than in the ordinary and usual course of
the operations of MBPI; granted any security interest or other lien or
encumbrance affecting any of its assets or properties other than in the ordinary
and usual course of business and in amounts not material; or amended any
agreement or contract to which MBPI is a party or by which its assets and
properties are bound.

     

    4.19       Adverse Developments.
Since the date of the Most Recent Balance Sheet there has been no material
adverse change in the business, operations or condition (financial or otherwise)
of MBPI; nor has there been since such date, any damage, destruction or loss,
whether covered by insurance or not, materially or adversely affecting the
business, properties or operations of MBPI.

     

    4.20       Actions and
Proceedings. MBPI is not subject to any outstanding orders, writs,
injunctions or decrees of any court or arbitration tribunal or any governmental
department, commission, board, agency or instrumentality, domestic or foreign,
against, involving or affecting the business, properties or employees of MBPI’s
right to enter into, execute and perform this Agreement (or any of the
transactions contemplated hereby). There are no actions, suits, claims or legal,
administrative or arbitration proceedings or investigations, including any
warranty or product liability claims (whether or not the defense thereof or
liabilities in respect thereof are covered by policies of insurance) relating to
or arising out of the business, properties or employees of MBPI pending or, to
the best knowledge of MBPI, threatened against or affecting MBPI.

     

    
      
         

      

      
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    4.21       Bank Accounts and Credit
Cards. Set forth on Schedule
4.21 hereto, is a true, complete and accurate list of all bank accounts,
safe deposit boxes, and credit or charge cards maintained by MBPI.

     

    4.22       MBPI Shares. The MBPI
Shares to be issued pursuant to this Agreement will be duly authorized and
reserved for issuance and when issued in accordance with this Agreement, will be
validly issued and outstanding, fully paid and non assessable and vest in the
holder thereof free and clear of any restrictions on transfer (other than any
restrictions under applicable state or federal securities laws), Taxes, Liens,
options, warrants, Purchase Rights, contracts, commitments, equities, claims,
and demands and will not be subject to any pre-emptive or other similar
rights.

     

    4.23       Over-the-Counter Bulletin
Board. The MBPI Common Stock is quoted on the Over-the-Counter Bulletin
Board (the “Bulletin
Board”) under the symbol “MBPI,” and MBPI has not received nor is it
aware of any proceeding to prevent the continued quotation of the MBPI Shares on
the Bulletin Board.

     

    4.24       Due Diligence. All
documents and other materials relating to MBPI and provided to CAOPU in
connection with this Agreement are true and correct in all material respects and
do not contain any misstatement and/or omission.

     

    4.25       No Registration
Rights. No holder of MBPI securities has any registration and/or similar
rights at any time or under any circumstances which would require MBPI to
register MBPI Common Stock, or any other securities of MBPI, for sale under the
Federal securities laws.

     

    4.26       Prior Sales of
Securities. All prior sales of securities by MBPI were either properly
registered under the Federal and/or State Securities laws or issued pursuant to
an exemption therefrom and all such sales were all done in accordance with all
laws, rules and regulations and no person/entity has any rescission and/or
similar rights with respect to any MBPI Shares.

     

    4.27       No
Brokers.  MBPI has not employed any broker, finder or similar
agent that would cause any brokerage, finder’s or placement fee or any similar
compensation in connection with this Agreement or any transaction contemplated
hereby.

     

    4.28           Purchase Entirely for Own
Account.  The TIDC Shares proposed to be acquired by MBPI
hereunder will be acquired for investment for its own account, and not with a
view to the resale or distribution of any part thereof, and MBPI has no present
intention of selling or otherwise distributing TIDC Shares, except in compliance
with applicable securities laws.

     

    4.29           Non-Registration.
MBPI understand that the TIDC Shares have not been registered under the
Securities Act and, if issued in accordance with the provisions of this
Agreement, will be issued by reason of a specific exemption from the
registration provisions of the Securities Act which depends upon, among other
things, the bona fide nature of the investment intent and the accuracy of MBPI’s
representations as expressed herein.

     

    
      
         

      

      
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    4.30       Environmental
Matters. MBPI (i) is not in violation of any Environmental Laws, (ii)
does not own or operate any real property contaminated with any substance that
is in violation of any Environmental Laws, (iii) is not liable for any off-site
disposal or contamination pursuant to any Environmental Laws, and (iv) is not
subject to any claim relating to any Environmental Laws; which violation,
contamination, liability or claim has had or could reasonably be expected to
have a material adverse effect, individually or in the aggregate on MBPI; and
there is no pending or, to MBPI and TL’s knowledge, threatened investigation
that might lead to such a claim.

     

    ARTICLE
V.

    REPRESENTATIONS
AND WARRANTIES OF LFG AND PHOEBUS

     

    LFG and
Phoebus, severally, but not jointly, represent and warrant to MBPI as
follows:

     

    5.1        Ownership of
TIDC.  Each of LFG and Phoebus holds of record and owns
beneficially the TIDC Shares set forth opposite each of their names on Schedule
2.1(a) hereto free and clear of any restrictions on transfer (other than
any restrictions under applicable state or federal securities laws), Taxes,
Liens, options, warrants, Purchase Rights, contracts, commitments, equities,
claims, and demands.  Neither LFG nor Phoebus is a party to any
option, warrant, Purchase Right, or other contract or commitment (other than
this Agreement) that could require either LFG and/or Phoebus to sell, transfer,
or otherwise dispose of any TIDC Shares. Neither LFG nor Phoebus is a party to
any voting trust, proxy, or other agreement or understanding with respect to the
voting of any capital stock of TIDC.  There are no outstanding stock
appreciation, phantom stock, profit participation, or similar rights with
respect to TIDC. There are no voting trusts, proxies, or other agreements or
understandings with respect to the voting of any capital stock of
TIDC.  Each of LFG and Phoebus has the power, authority and legal
capacity to sell, transfer, assign and deliver the TIDC Shares set forth
opposite each of their names on Schedule
2.1(a) as provided in this Agreement, and such delivery will convey to
MBPI good and marketable title to such TIDC Shares, free and clear of all
Liens.

     

    5.2        Valid Corporate Existence;
Qualification - LFG.  LFG is duly organized, validly existing
and in good standing under the laws of the British Virgin Islands and has all
requisite power and authority to own, lease, use and operate its properties and
assets and to carry on its business as and in the jurisdictions such properties
and assets are owned, leased, used and operated and as such business is
presently conducted.  LFG is duly qualified, licensed, authorized or
admitted to do business and is in good standing under the laws of each
jurisdiction in which the ownership, use, operation or leasing of its properties
and assets, or the conduct or nature of its business, requires such
qualification, licensing, authorization or admission.  LFG has
delivered to MBPI true and complete copies of LFG’s Memorandum and Articles of
Association and such other constituent instruments of LFG as may exist, each as
amended to the date of this Agreement (as so amended, the “LFG
Constituent Instruments”).  The copies of the LFG Constituent
Instruments attached hereto as Schedule
5.2, are true, complete and correct.

     

    
      
         

      

      
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    5.3        Valid Corporate Existence;
Qualification - Phoebus.  Phoebus is duly organized, validly
existing and in good standing under the laws of the British Virgin Islands and
has all requisite power and authority to own, lease, use and operate its
properties and assets and to carry on its business as and in the jurisdictions
such properties and assets are owned, leased, used and operated and as such
business is presently conducted.  Phoebus is duly qualified, licensed,
authorized or admitted to do business and is in good standing under the laws of
each jurisdiction in which the ownership, use, operation or leasing of its
properties and assets, or the conduct or nature of its business, requires such
qualification, licensing, authorization or admission.  Phoebus has
delivered to MBPI true and complete copies of Phoebus’ Memorandum and Articles
of Association and such other constituent instruments of Phoebus as may exist,
each as amended to the date of this Agreement (as so amended, the “Phoebus
Constituent Instruments”).  The copies of the TIDC Constituent
Instruments attached hereto as Schedule
5.3, are true, complete and correct.

     

    5.4        Authority;
Enforceability.  LFG and Phoebus each have full power,
authority and legal capacity to enter into this Agreement and the other
Transaction Documents to which they are a party and to perform their obligations
hereunder and thereunder.  The execution, delivery and performance of
this Agreement and the other Transaction Documents and the consummation of the
transactions contemplated hereby and thereby have been duly and validly
authorized and approved by all required actions of LFG’s and Phoebus’ board of
directors and stockholders and no other actions on the part of LFG’s or Phoebus’
board of directors or stockholders are necessary to authorize and approve this
Agreement and the other Transaction Documents and the transactions contemplated
hereby and thereby.  This Agreement has been duly executed and
delivered by LFG and Phoebus and constitutes valid and binding obligations of
LFG and Phoebus, enforceable against each of them in accordance with its terms.
At Closing, all other Transaction Documents to be executed and delivered by LFG
and/or Phoebus shall have been duly executed and delivered by LFG and/or
Phoebus.  All other Transaction Documents executed and delivered by
LFG and/or Phoebus shall constitute valid and binding obligations of LFG and/or
Phoebus, enforceable against each of them in accordance with their
terms.

     

    5.5        No
Conflicts.  Neither the execution and delivery by LFG and
Phoebus of this Agreement and the other Transaction Documents, the consummation
of the transactions contemplated hereby or thereby, nor compliance by LFG and
Phoebus with any of the provisions hereof or thereof (a) conflict with, or
result in the breach of, any provision of either of the LFG Constituent
Instruments or the Phoebus Constituent Instruments, (b) conflict with, violate,
result in the breach or termination of, or constitute a default or give rise to
any right of termination or acceleration or right to increase the obligations or
otherwise modify the terms thereof under any material Permit or any Order to
which either LFG or Phoebus is a party or any material Contract to which LFG or
Phoebus or any of their respective properties or assets is bound, (c) constitute
a violation of any Law applicable to LFG or Phoebus or (d) result in the
creation of any Lien upon the properties or assets of LFG or
Phoebus.

     

    5.6        Consents.  Other
than those which have been obtained by LFG and/or Phoebus, no Consent is
required on the part of LFG or Phoebus to enable each of them to enter into and
deliver this Agreement or the Transaction Documents, and to carry out all of the
transactions contemplated hereby or thereby or the compliance by LFG and Phoebus
with any of the provisions hereof or thereof.

     

    5.7        Purchase Entirely for Own
Account.  The MBPI Shares proposed to be acquired by each of
LFG and Phoebus hereunder will be acquired for investment for its own account,
and not with a view to the resale or distribution of any part thereof, and
neither LFG nor Phoebus has a present intention of selling or otherwise
distributing MBPI Shares, except in compliance with applicable securities
laws.

     

    
      
         

      

      
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    5.8         Non-Registration.
Each of LFG and Phoebus understands that the MBPI Shares have not been
registered under the Securities Act and, if issued in accordance with the
provisions of this Agreement, will be issued by reason of a specific exemption
from the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of
LFG’s and Phoebus’ representations as expressed herein.

     

    5.9         Accredited
Investor.  Each of LFG and Phoebus is an “accredited investor”
within the meaning of Rule 501 under the Securities Act and was not organized
for the specific purpose of acquiring MBPI Shares.

     

    ARTICLE
VI.

    PRE
AND POST CLOSING COVENANTS

     

    6.1         Pre-Closing
Covenants.  The Parties agree as follows with respect to the
period between the execution of this Agreement and the Closing:

     

    (a)           General. Each of the
Parties will use his, her, or its best efforts to take all actions and to do all
things necessary, proper, or advisable in order to consummate and make effective
the transactions contemplated by this Agreement and the other Transaction
Documents (including satisfaction of the Closing conditions set forth in Article
VI below).

     

    (b)           Preservation of
Business. From the date of this Agreement until the Closing Date, each of
CAOPU, TIDC and MBPI shall operate their respective business (which, with
respect to TIDC, includes the businesses of the TIDC Subsidiaries) only in the
ordinary and usual course of business consistent with past practice (provided,
however, that MBPI shall not issue any securities or incur any monetary
obligations without the prior written consent of CAOPU), and shall use
reasonable commercial efforts to (a) preserve intact their respective business
organization, (b) preserve the good will and advantageous relationships with
customers, suppliers, independent contractors, employees and other Persons
material to the operation of their respective businesses, and (c) not permit any
action or omission which would cause any of their respective representations or
warranties contained herein to become inaccurate or any of their respective
covenants to be breached in any material respect.

     

    (c)           Full Access. MBPI
will permit representatives of CAOPU (including legal counsel and accountants)
to have full access at all reasonable times, and in a manner so as not to
interfere with the normal business operations of the MBPI, to all premises,
properties, personnel, books, records (including tax records), contracts, and
documents of or pertaining to MBPI.

     

    
      
         

      

      
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    (d)           Public
Announcements.  CAOPU and MBPI will consult with each other
before issuing, and provide each other the opportunity to review and comment
upon, any press release or other public statements with respect to the Agreement
and the transactions hereby and shall not issue any such press release or make
any such public statement without the prior written consent of the other
parties, except as may be required under applicable Law.  Provided,
however, with respect to MBPI’s Current Report on Form 8-K filed with the SEC
disclosing MBPI’s entry into this Agreement, CAOPU and MBPI will consult with
each other before filing such Form 8-K and provide each other the opportunity to
review and comment upon, such Form 8-K and MBPI shall not file such Form 8-K
with the SEC without CAOPU’s prior written consent which shall not be
unreasonably withheld.

     

    (e)           Fees and Expenses.
All fees and expenses incurred in connection with this Agreement shall be paid
by the Party incurring such fees or expenses, whether or not this Agreement is
consummated.

     

    (f)           Form 8-K
Information.  TIDC shall provide MBPI with such audited annual
and unaudited interim financial information, pro-forma financial information and
all footnotes thereto and auditor’s letters relating to the business of TIDC and
the TIDC Subsidiaries as may be requested by MBPI in order for MBPI to comply
with its reporting and disclosure obligations under the rules and regulations of
the SEC, including, but not limited to Regulation S-X and Form 8-K (the “Form 8-K
Financial Information”), in connection with MBPI’s preparation of its
Current Report on Form 8-K, and any amendments thereto, regarding the Closing
(the “Form
8-K”).  TIDC shall provide such Form 8-K Financial Information
promptly so as to allow MBPI and its regularly retained accounting firm (“MBPI’s
Accountant”) to: (i) review all financial statements relating to TIDC and
the TIDC Subsidiaries as shall be required to be included in said Form 8-K, and
(ii) timely file the Form 8-K.  TIDC shall in a prompt and timely
manner provide MBPI’s Accountant with such management representations as may be
requested by MBPI’s Accountant in connection with its preparation of any
financial statements for TIDC relating to such Form 8-K. In addition, TIDC shall
also provide to MBPI such additional information regarding TIDC and the TIDC
Subsidiaries that would be required if MBPI were filing a general registration
of securities on Form 10 under the Exchange Act (the “Form 8-K
Business Disclosures”) as may be requested by MBPI.  CAOPU
shall provide MBPI and its counsel with a draft of the Form 8-K prior to the
closing which shall be reasonably acceptable in form and substance to MBPI and
its counsel.

     

    (g)           Appointment of Officers and
Directors.  TL shall take all action necessary to have the
persons designed by Caopu appointed as officers and directors of MBPI, which
shall be effective immediately upon the Closing.

     

    (h)           Cancellation of TL’s MBPI
Shares.  TL and MBPI shall take all action necessary to deliver
to CAOPU a certificate representing 875,000 shares of the MBPI Common Stock
owned by TL for cancellation.

     

    
      
         

      

      
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    6.2         Post-Closing
Covenants.

     

    (a)           Filing of Current Report on
Form 8-K and Press Release. MBPI shall no later than four (4) Business
Days after the Closing file the Form 8-K with the SEC.

     

    (b)           Blue Sky
Laws.  MBPI shall take any action (other than qualifying to do
business in any jurisdiction in which it is not now so qualified) required to be
taken under any applicable state securities laws in connection with the issuance
of MBPI Shares in connection with this Agreement.

     

    (c)           Quotations of MBPI Common
Stock.  MBPI shall use its best efforts and take all actions
necessary to maintain the quotation of its common stock on the Bulletin Board or
to become listed on a recognized exchange.

     

    (d)           Exchange Act
Filings.  For a period of three years following the Closing,
MBPI shall use its best efforts to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be
filed by MBPI pursuant to the Exchange Act.

     

    (e)           Internal Controls and
Procedures.  As soon as reasonably practicable after the
Closing, MBPI and TIDC will cooperate in good faith and use commercially
reasonable efforts to design, and MBPI will implement, maintain, adhere to and
enforce, a system of internal accounting and disclosure controls and procedures
that are effective in providing assurance regarding the reliability of financial
reporting and the preparation of financial statements in accordance with GAAP,
including policies and procedures that (i) require the maintenance of
records that in reasonable detail accurately and fairly reflect the transactions
and dispositions of the assets of MBPI, (ii) provide assurance that
transactions are recorded as necessary to permit preparation of financial
statements in accordance with GAAP, and that receipts and expenditures of MBPI
are being made only in accordance with appropriate authorizations of management
and MBPI’s board of directors, and (iii) provide assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition
of the assets of MBPI.

     

    (f)           Asset
Sale.  MBPI and TL shall take all necessary actions to complete
the Asset Sale and shall complete the Asset Sale on or before the Closing
Date.

     

    (g)           Forward
Split.  MBPI shall use its best efforts to complete a forward
split of its issued and outstanding Common Stock at a ratio of thirteen (15)
shares of Common Stock for one (1) share of Common Stock (the “Forward
Split”).  Immediately after completing the Forward Split, MBPI
shall have a total of 25,725,000 shares of Common Stock issued and
outstanding.

     

    ARTICLE
VII.

    CONDITIONS
PRECEDENT TO CLOSING

     

    7.1         CAOPU, LFG and Phoebus’
Conditions to Closing.  The obligations of CAOPU, LFG and
Phoebus to consummate the transactions contemplated by this Agreement are
subject to the satisfaction of the following conditions on or before the Closing
Date:

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    (a)           Representations, Warranties
and Covenants.  The representations and warranties of MBPI and
TL in this Agreement shall be true and correct on the Closing Date, and MBPI and
TL shall have duly performed and complied with all covenants and required by
this Agreement to be performed or complied with by them on or prior to the
Closing.

     

    (b)           Absence of
Litigation. No action or proceeding shall be pending or threatened by or
before any court or other governmental body or agency seeking to restrain,
prohibit or invalidate the transactions contemplated by this Agreement or which
would adversely affect the right of CAOPU, LFG and Phoebus to own the MBPI
Shares.

     

    (c)           Consents and
Approvals. All (a) consents, (b) licenses, (c) other orders or
notifications of, or registrations, declarations or filings with, or expiration
of waiting periods imposed by, any applicable governmental or judicial authority
and (d) consents, approvals, authorizations or notifications of any other third
parties, all as required in connection with consummation of the transactions
contemplated by this Agreement, shall have been made or obtained or shall have
occurred.

     

    (d)           Cancellation  of
TL’s Shares.  TL and MBPI shall have cancelled the 875,000
shares of MBPI Common Stock beneficially owned by TL.

     

    (e)           Approval of Assignment and
Assumption Agreement and Asset Sale.  MBPI shall have obtained
written consents from its board of directors and the approval of its
shareholders as required under applicable Law approving the Asset
Sale.

     

    (f)           Director and Shareholder
Consents.  CAOPU, LFG and Phoebus shall have obtained written
consents of its board of directors and shareholders as required under applicable
Law approving, among other items, this Agreement, the other Transaction
Documents and the consummation of the transactions contemplated hereby and
thereby.

     

    (g)           Deliveries.  The
closing deliveries specified in Section
8.2 shall have been made by MBPI.

     

    7.2         MBPI and TL’s Conditions to
Close.  The obligations of MBPI and TL to consummate the
transaction contemplated by this Agreement are subject to the satisfaction of
each of the following conditions on or before the Closing Date:

     

    (a)           Representations, Warranties
and Covenants.  The representations and warranties of CAOPU and
TIDC contained in this Agreement shall be true and correct on the Closing Date,
and CAOPU and TIDC shall have duly performed and complied with all covenants and
obligations required by this Agreement to be performed or complied with by it on
or before the Closing Date.

     

    (b)           Absence of
Litigation.  No action or proceeding shall be pending by or
before any court or other governmental body or agency seeking to restrain,
prohibit or invalidate the transactions contemplated by this
Agreement.

     

    
      
         

      

      
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    (c)           Consents and
Approvals.  All (a) consents, (b) licenses, (c) other orders or
notifications of, or registrations, declarations or filings with, or expiration
of waiting periods imposed by, any applicable governmental or judicial authority
and (d) consents, approvals, authorizations or notifications of any other third
parties, all as required in connection with consummation of the transactions
contemplated by this Agreement, shall have been made or obtained or shall have
occurred.

     

    (d)           Director and Shareholder
Consents.  MBPI shall have obtained written consents of its
board of directors and shareholders as required under applicable Law approving,
among other items, this Agreement, the other Transaction Documents and the
consummation of the transactions contemplated hereby and thereby.

     

    (e)           Deliveries.  The
closing deliveries specified in Section
8.3 shall have been made by CAOPU, LFG and Phoebus.

     

    ARTICLE
VIII.

    CLOSING

     

    8.1         Closing. The delivery
of the TIDC Shares to MBPI and the delivery of the MBPI Shares to CAOPU, LFG and
Phoebus and the consummation of the other respective obligations of the Parties
contemplated by this Agreement will take place at a closing (the “Closing”),
which will be held at the offices of Gusrae, Kaplan, Bruno & Nusbaum PLLC,
120 Wall Street, 11th Floor,
New York, NY 10005 on November 15, 2009, or another date (the “Closing
Date”) and location as mutually agreed upon by the Parties.

     

    8.2         Deliveries by MBPI and
TL. At the Closing, MBPI and TL will deliver or cause to be delivered,
unless waived by CAOPU, the following to CAOPU, LFG and Phoebus:

     

    (a)           this
Agreement duly executed by MBPI and TL;

     

    (b)           copy
of the MBPI certificate of incorporation certified by the Delaware Secretary of
State;

     

    (c)           good
standing certificate from the Delaware Secretary of State;

     

    (d)           certificates
from an appropriate governmental official in each jurisdiction in which MBPI is
qualified or admitted to do business as a foreign corporation to the effect that
MBPI duly qualified or admitted in good standing in such jurisdiction, all of
such certificates to be dated within ten (10) days before the Closing
Date;

     

    (e)           executed
certificates of the secretary or other appropriate officer of MBPI, dated the
Closing Date, in form and substance reasonably satisfactory to CAOPU, certifying
(i) the resolutions of the board of directors of MBPI authorizing the execution
and performance of this Agreement and the other Transaction Documents and the
transactions contemplated hereby and thereby certifying that they have not been
rescinded or amended; (ii) as to the incumbency of the officers of MBPI
executing this Agreement, and/or any related agreement, and including specimen
signatures; (iii) that no vote, approval or consent of any holder of capital
stock of MBPI is required or necessary to consummate the transactions
contemplated by this Agreement or the other Transaction Documents;

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    (f)           certificates
representing the MBPI Shares;

     

    (g)           the
corporate minute books and capital stock records of MBPI;

     

    (h)           the
Tax Returns of MBPI;

     

    (i)           TL’s
letter of resignation pursuant to which TL shall resign as an officer and
director of MBPI effective immediately upon the Closing;

     

    (j)           the
other Transaction Documents duly executed by the parties thereto;

     

    (k)           10b-5
Letters from each of the officers and directors of MBPI addressed to
CAOPU;

     

    (l)           an
opinion of MBPI’ Counsel dated the Closing Date addressed to CAOPU with respect
to, among other items under the applicable laws of the Delaware, due
authorization, valid issuance and non-assessability of the MBPI Shares and MBPI’
authority to enter into this Agreement;

     

    (m)           a
Secretary’s Certificate dated the Closing Date in form and substance
satisfactory to CAOPU as to (i) the MBPI Constituent Instruments, (ii) the
resolutions of the board of directors and shareholders authorizing this
Agreement and the other Transaction documents, (iii) the incumbency and
signatures of the MBPI officers executing this Agreement and

     

    (n)           a
certificate executed by a duly authorized executive officer of MBPI certifying
completion of each of the matters listed in Sections
7.1(a) through 7.1(e) hereof.

     

    8.3         Deliveries by CAOPU, LFG,
Phoebus and TIDC. At the Closing, CAOPU, LFG, Phoebus and TIDC will
deliver or cause to be delivered, unless waived by MBPI and TL, the
following:

     

    (a)           this
Agreement duly executed by CAOPU, LFG, Phoebus and TIDC;

     

    (b)           the
other Transaction Documents duly executed by CAOPU, LFG, Phoebus and or TIDC, as
applicable;

     

    (c)           certificates
representing the TIDC Shares duly endorsed for transfer or accompanied by
executed stock powers;

     

    (d)           Opinions
of counsel from CAOPU’s, LFG’s and Phoebus’ British Virgin Islands counsel and
TIDC’s PRC counsel, dated the Closing Date with respect to, among other items
under the applicable laws of the British Virgin Islands and/or the
PRC:  Each of CAOPUS’s, LFG’s, Phoebus’ and TIDC’s authority to enter
into this Agreement and the other Transaction Documents; the due authorization
of the TIDC Shares; CAOPU’s, LFG’s and Phoebus’ ownership of the TIDC Shares;
TIDC’s ownership of the SCAC Shares and TIDC’s  and SCAC’s good
standing, in form and substance to satisfactory to MBPI and its legal
counsel;

     

    
      
         

      

      
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    (e)           10b-5
Letters from each of the officers and directors of CAOPU, TIDC and SCAC
addressed to MBPI;

     

    (f)           Secretary’s
Certificates dated the Closing Date in form and substance satisfactory to MBPI
as to (i) the CAOPU, TIDC and SCAC Constituent Instruments, (ii) the resolutions
of the board of directors and shareholders of CAUPO authorizing this Agreement
and the other Transaction documents, (iii) the incumbency and signatures of the
CAOPO officers executing this Agreement; and

     

    (g)           a
certificate executed by a duly authorized executive officer of CAOPU certifying
completion of each of the matters listed in Sections
7.2(a) through 7.2(c) hereof.

     

    ARTICLE
IX.

    INDEMNIFICATION

     

    9.1         Indemnification by MBPI and
TL.  MBPI and TL shall, jointly and severally, indemnify,
defend and hold harmless CAOPU, LFG, Phoebus, TIDC and their respective
officers, directors, and Affiliates in respect of, and hold each of them
harmless from, against, and with respect to any and all Losses suffered,
incurred or sustained by any of them, or to which any of them becomes subject,
to the extent resulting from, arising out of or relating to any of the
following:

     

    (a)           any
and all violations of Laws by MBPI and/or TL, direct or indirect, fixed,
contingent, legal, statutory or contractual, which exist at or as of the Closing
Date or which arise after the Closing Date but which are directly and primarily
caused by acts, failures to act, transactions, services or state of facts which
occurred or existed on or before the Closing Date, whether or not then known,
due or payable;

     

    (b)           any
breach, in any material respect, or default, in any material respect, in the
performance by MBPI and/or any TL of any covenant or agreement of any of them in
this Agreement or the performance by MBPI and/or TL of any covenant or agreement
in this Agreement the performance of which was required by this Agreement to be
satisfied prior to the Closing;

     

    (c)           any
breach, in any material respect, by MBPI and/or TL of any of the representations
or warranties made by any of them in this Agreement; and

     

    (d)           any
broker’s or finder’s fee or any similar fee, charge or commission incurred by
MBPI and/or TL prior to or in connection with this Agreement, or any of the
transactions contemplated hereby.

     

    
      
         

      

      
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    9.2         Indemnification by CAOPU and
TIDC.  CAOPU and TIDC shall, jointly and severally, indemnify,
defend and hold harmless TL, MBPI and MBPI’ officers, directors, and Affiliates
in respect of, and hold each of them harmless from, against, and with respect to
any and all Losses suffered, incurred or sustained by any of them, or to which
any of them becomes subject, to the extent resulting from, arising out of or
relating to any of the following:

     

    (a)           any
and all violations of Laws by CAOPU and/or TIDC, direct or indirect, fixed,
contingent, legal, statutory or contractual, which exist at or as of the Closing
Date or which arise after the Closing Date but which are directly and primarily
caused by acts, failures to act, transactions, services or state of facts which
occurred or existed on or before the Closing Date, whether or not then known,
due or payable;

     

    (b)           any
breach, in any material respect, or default, in any material respect, in the
performance by CAOPU and/or TIDC of any covenant or agreement of any of them in
this Agreement or the performance by CAOPU and/or TIDC of any covenant or
agreement in this Agreement the performance of which was required by this
Agreement to be satisfied prior to the Closing; and

     

    (c)           any
breach, in any material respect, by CAOPU and/or TIDC of any of the
representations or warranties made by any of them in this
Agreement.

     

    9.3         Other Remedies. The
foregoing indemnification provisions are in addition to, and not in derogation
of, any statutory, equitable or common law remedy any party may have as a result
of a Loss.

     

    9.4         Survival of
Representations. All representations and warranties of the Parties hereto
contained in this Agreement or otherwise made in writing in connection with the
transactions contemplated hereby shall survive the execution and delivery of
this Agreement and the Closing and shall continue through and including
September 30, 2010, with the exception of the representations and warranties set
forth in Sections
3.6, 3.7 and 4.4 (Capitalization), Sections
3.17 and 4.16 (Taxes), and Sections
3.18 and 4.30 (Environmental Matters), which shall have no expiration
other than applicable statutes of limitation.

     

    9.5         Notice and Opportunity to
Defend.  Promptly after the receipt by a Party of notice of any
action, proceeding, claim or potential claim (any of which is hereinafter
individually referred to as a “Claim”)
which could give rise to a right to indemnification under any subsection
of  Section 9
, the party receiving such notice (an “Indemnified
Party”) shall give prompt written notice to the party or parties who may
become obligated to provide indemnification hereunder (the “Indemnifying
Party”).  Such notice shall specify in reasonable detail the
basis and amount, if ascertainable, of any claim that would be based upon the
Claim. The failure to give such notice promptly shall relieve the Indemnifying
Party of its indemnification obligations under this Agreement, unless the
Indemnified Party establishes that the Indemnifying Party either had knowledge
of the Claim or was not prejudiced by the failure to give notice of the
Claim.  The Indemnifying Party shall have the right, at its option, to
compromise or defend the claim, at its own expense and by its own counsel, and
otherwise control any such matter involving the asserted liability of the
Indemnified Party, provided that any such compromise or control shall be subject
to obtaining the prior written consent of the Indemnified Party which shall not
be unreasonably withheld, conditioned or delayed. If any Indemnifying Party
undertakes to compromise or defend any asserted liability, it shall promptly
notify the Indemnified Party of its intention to do so, and the Indemnified
Party agrees to cooperate fully with the Indemnifying Party and its counsel in
the compromise of or defense against any such asserted liability. All costs and
expenses incurred in connection with such cooperation shall be borne by the
Indemnifying Party. In any event, the Indemnified Party shall have the right at
its own expense to participate in the defense of an asserted
liability.

     

    
      
         

      

      
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    ARTICLE
X.

    TERMINATION

     

    10.1         This
Agreement may be terminated at any time prior to the Closing:

     

    (a)           by
mutual written agreement of Parties;

     

    (b)           by
CAOPU if the Closing has not occurred by October 1, 2009 (the “Termination
Date”);

     

    (c)           by
any Party hereto if any Governmental Authority shall have issued an order,
decree or ruling or taken any other action permanently enjoining, restraining or
otherwise prohibiting the transactions contemplated by this Agreement and such
order, decree, ruling or other action shall have become final and
nonappealable.

     

    10.2         Effect of
Termination. Upon termination of this Agreement pursuant to this Article
9, this Agreement shall be void and of no effect and shall result in no
obligation of or liability to any Party or their respective directors, officers,
members, managers, employees, agents or stockholders for damages, penalties or
liquidated damages; provided that if this Agreement is terminated as a result of
an intentional breach of any representation, warranty or covenant in this
Agreement, the Party who breached the representation, warranty or covenant shall
be liable to the other Parties for actual damages, including all costs and
expenses incurred in connection with the preparation, negotiation, execution and
performance of this Agreement. If any Party hereto shall terminate this
Agreement pursuant to the provisions hereof, such termination shall be effected
by notice to the other Parties specifying the provision hereof pursuant to which
such termination is made. In no event shall any party be entitled to
consequential damages, lost profits or special or punitive damages as a result
of the termination of this Agreement.

     

    ARTICLE
XI.

    MISCELLANEOUS

     

    11.1         Publicity.  Each
of the Parties shall consult with each other with respect to the content of any
press release, public statement or other publicity concerning this Agreement or
the transactions contemplated hereby, and except as otherwise required by Law,
after such consultation, any such press release and other publicly shall be made
only with the prior agreement of CAOPU and MBPI, which agreement shall not be
unreasonably withheld or delayed.

     

    
      
         

      

      
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    11.2           Assignment. Neither
this Agreement nor any right created hereby shall be assignable by any Party
hereto.

     

    11.3           Non-Waiver. The
failure in any one or more instances of a Party to insist upon performance of
any of the terms, covenants or conditions of this Agreement, to exercise any
right or privilege in this Agreement conferred, or the waiver by said Party of
any breach of any of the terms, covenants or conditions of this Agreement, shall
not be construed as a subsequent waiver of any such terms, covenants,
conditions, rights or privileges, but the same shall continue and remain in full
force and effect as if no such forbearance or waiver had occurred. No waiver
shall be effective unless it is in writing and signed by an authorized
representative of the waiving Party. A breach of any representation, warranty or
covenant shall not be affected by the fact that a more general or more specific
representation, warranty or covenant was not also breached.

     

    11.4           Binding Effect;
Benefit. This Agreement shall inure to the benefit of and be binding upon
the Parties hereto, and their successors and permitted assigns. Nothing in this
Agreement, express or implied, shall confer on any Person other than the parties
hereto, and their respective successors and permitted assigns, any rights,
remedies, obligations or liabilities under or by reason of this
Agreement.

     

    11.5           Notices. Any notice
or communication must be in writing and will be deemed given: (i) when delivered
if delivered personally (including by courier); (ii) on the third Business Day
after mailing, if mailed, postage prepaid, by registered or certified mail
(return receipt requested); (iii) on the day after mailing if sent by a
nationally recognized overnight delivery service which maintains records of the
time, place, and recipient of delivery; or (iv) upon receipt of a confirmed
transmission, if sent by telecopy or facsimile transmission. For purposes of
notice, the addresses of the parties shall be:

     

    If to
CAOPU, and/or TIDC:

     

    No. 2888
Qinghe Road

    Development
Zone Cao County

    Shandong
Province China

    Attention:
Mr. Li  Jinliang

    Telephone:  86-530-3431658

    Telecopy:  86-530-3431221

    

                If
to LFG:

    

    Tenth
Floor, Botai Plaza, No.221

    Wangjing
Xiyuan, Chaoyang District

    Beijing,
100102, China

    Attention:
Mr. Li Ziwen

    Telephone:
86-10-64789105

    Telcopy:
86-10-64789550

    
      
         

      

      
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               If
to Phoebus:

    

    
      Room
1103, South Office Building,

    

    New World
Center, No. 3 Chong

    Wen Men
Wai Street, Beijing,

    100062
China

    Attention:
Mr. Han Xu

    Telephone:
86-10-67080230

    Telcopy:
86-10-67080227

    

    With a
copy to:

    

    Gusrae, Kaplan, Bruno & Nusbaum
PLLC

    120 Wall Street

    New York, NY 10006

    Attention: Lawrence
Nusbaum

    Telephone: (212) 269-1400

    Telecopy:  (212)
809-5449

    

    If to TL
and/or MBPI:

    

    Mobile Presence Technologies,
Inc.

    at 51 Belmont Avenue

    Northampton,
MA 01060

    Attention:  Timothy
Lightman

    Telephone: (917) 825-9093

    Telecopy:  None

     

    With a
copy to:

     

    Frank J.
Hariton, Esq.

    1065 Dobbs Ferry Road

    White Plains, New York
10607

    Telephone: (914) 674-4373

    Telecopy:  (914)
693-2963

     

    11.6           Governing Law,
Venue.   This Agreement shall be governed solely and
exclusively by and construed in accordance with the internal laws of the State
of New York without regard to the conflicts of laws principles
thereof.  The parties hereto hereby expressly and irrevocably agree
that any suit or proceeding arising directly and/or indirectly pursuant to or
under this Agreement shall be brought solely in a federal or state court located
in the City, County and State of New York. By its execution hereof, the parties
hereby covenant and irrevocably submit to the in personam jurisdiction
of the federal and state courts located in the City, County and State of New
York and agree that any process in any such action may be served upon any of
them personally, or by certified mail or registered mail upon them or their
agent, return receipt requested, with the same full force and effect as if
personally served upon them in New York City. The parties hereto expressly and
irrevocably waive any claim that any such jurisdiction is not a convenient forum
for any such suit or proceeding and any defense or lack of in personam jurisdiction with
respect thereto. In the event of any such action or proceeding, the party
prevailing therein shall be entitled to payment from the other party hereto of
its reasonable counsel fees and disbursements.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    11.7           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    11.8           Facsimile Transmissions. This
Agreement, the other Transaction Documents and all agreements, documents and
certificates delivered pursuant to this Agreement and/or the other Transaction
Documents or in connection with the transactions consummated pursuant to this
Agreement or the other Transaction Documents may be executed by any Party and
transmitted by such Party to any other Party or Parties by facsimile, and any
such document shall be deemed to have full force and effect as if the facsimile
signature or signatures on such documents were original.

     

    11.9           Third Party
Beneficiaries.  None of the provisions of this Agreement or any
document contemplated hereby is intended to grant any right or benefit to any
person or entity which is not a party to this Agreement.

     

    11.10         Headings.  The
article and section headings contained in this Agreement are solely for the
purpose of reference, are not part of this Agreement and shall not in any way
affect the meaning or interpretation of this Agreement.

     

    11.11         Specific
Performance.  TL and MBPI acknowledge that the MBPI Shares are
unique and that if MBPI and TL fail to consummate the transactions contemplated
by this Agreement such failure will cause irreparable harm to CAOPU for which
there will be no adequate remedy at law.  CAOPU shall be entitled, in
addition to its other remedies at law, to specific performance of this Agreement
if MBPI and/or TL shall, without cause, refuse to consummate the transactions
contemplated by this Agreement.

     

    11.12         Severability.  In
the event that any provision in this Agreement shall be determined to be
invalid, illegal or unenforceable in any respect, the remaining provisions of
this Agreement shall not be in any way impaired, and the illegal, invalid or
unenforceable provision shall be fully severed from this Agreement and there
shall be automatically added in lieu thereof a provision as similar in terms and
intent to such severed provision as may be legal, valid and
enforceable.

     

    11.13         Entire
Agreement.  This Agreement and the Schedules and Exhibits
hereto, constitute the entire contract between the Parties hereto pertaining to
the subject matter hereof, and supersede all prior and contemporaneous
agreements and understandings between the Parties with respect to such subject
matter.

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    [Remainder
of page intentionally left blank]

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly
signed as of the date first above written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Tianwei International Development
      Corporation

                                
	 
      	 
      
	
                                  By:

                                	
                                  /s/
      Li Jinliang

                                
	
                                  Name:
      Li Jinliang

                                
	
                                  Title:
      Chairman and Chief Executive Officer

                                
	 
      
	
                                  CAOPU
      Enterprise Limited

                                
	 
      
	
                                  By:

                                	
                                  /s/
      Li Jinliang

                                
	
                                  Name:
      Li Jinliang

                                
	
                                  Title:
      Chairman and Chief Executive Officer

                                
	 
      
	
                                  Mobile
      Presence Technologies, Inc.

                                
	 
      
	
                                  By:

                                	
                                  /s/
      Timothy Lightman

                                
	
                                  Name:
      Timothy Lightman

                                
	
                                  Title:
      President

                                
	 
      
	
                                  London
      Financial Group, Ltd.

                                
	 
      
	
                                  By:

                                	
                                  /s/
      Li Ziwen

                                
	
                                  Name:
      Li Ziwen

                                
	
                                  Title:
      President

                                
	 
      
	
                                  Phoebus
      Vision Investment Development Group Ltd.

                                
	 
      
	
                                  By:

                                	
                                  /s/
      Han Xu

                                
	
                                  Name:
      Han Xu

                                
	
                                  Title:
      President

                                
	 
      
	
                                  /s/

                                	
                                  Timothy
      Lightman

                                
	
                                  Timothy
      Lightman,
individually

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    Schedule
2.1(a)

    

    
      
        
          
            	
                    Entity

                  	 
      	
                    TIDC
      Shares

                  	 
      	
                    MBPI
      Shares

                  
	
                    CAOPU

                  	 
      	
                    19,200

                  	 
      	
                    1,481,760

                  
	
                    LFG

                  	 
      	
                    266

                  	 
      	
                    20,529

                  
	
                    Phoebus

                  	 
      	
                    534

                  	 
      	
                    41,211

                  

          

        

      

    

    
      
         

      

      
        33Unassociated Document

    
       

      
        	 Due              NOVEMBER
      30, 2010	 
	 Customer #                                   
      Loan
      #	 

      

       

    

    REVOLVING
CREDIT NOTE

    
      	
              $     2,500,000.00

            	______________	
              NOVEMBER 4,
      2009

            	______________

    

    

    FOR VALUE RECEIVED, the undersigned
borrower (the 'Borrower"),
promises to pay to the
order of ___ U.
S . BANK
N.A.                               
 (the
'Bank"), the principal
sum of TWO
MILLION FIVE HUNDRED THOUSAND AND NO/100

    
      	
               

            	 
      

    

     

    Dollars
($ 2,500,
000.00 ________), payableNOVEMBER
30,
2010 ____(the "Maturity Date").

     

    Interest.

     

    The
unpaid principal balance will bear interest at an annual rate
described in the Interest Rate Rider attached to this Note.

     

    Payment
Schedule.

     

    Interest
is payable beginning NOVEMBER 30, 2009, and on the same date of each consecutive
month thereafter (except that if a given month does not have such a date, the
last day of such month), plus a final interest payment with the final payment of
principal.

     

    Interest
will be computed for the actual number of days principal is unpaid, using a
daily factor obtained by dividing the stated interest
rate by 360.

     

    Notwithstanding
any provision of this Note to the contrary, upon any default or at any time
during the continuation thereof (including failure to pay upon maturity), the
Bank may, at its option and subject to applicable law, increase the interest
rate on this Note to a rate of 5% per annum plus the interest rate otherwise
payable hereunder. Notwithstanding the foregoing and subject to applicable law,
upon the occurrence of a default by the Borrower or any guarantor involving
bankruptcy, insolvency, receivership proceedings or an assignment for the
benefit of creditors, the interest rate on this Note shall automatically
increase to a rate of 5% per annum plus the rate otherwise payable
hereunder.

     

    In no
event will the interest rate hereunder exceed that permitted by applicable law.
If any interest or other charge is finally determined by a court of competent
jurisdiction to exceed the maximum amount permitted by law, the interest or
charge shall be reduced to the maximum permitted by law, and the Bank may credit
any excess amount previously collected against the balance due or refund the
amount to the Borrower.

     

    Subject
to applicable law, if any payment is not made on or before its due date, the
Bank may collect a delinquency charge of 5 .00
% of the unpaid amount. Collection of the late payment fee shall not be
deemed to be a waiver of the Bank's right to declare a default
hereunder.

     

    Without
affecting the liability of any Borrower, endorser, surety or guarantor, the Bank
may, without notice, renew or extend the time for payment, accept partial
payments, release or impair any collateral security for the payment of this
Note, or agree not to sue any party liable on it.

     

    This
Revolving Credit Note constitutes the Note issued under a Revolving Credit
Agreement dated as of the date hereof between the Borrower and the Bank, to
which Agreement reference is hereby made for a statement of the terms and
conditions under which loans evidenced hereby were or may be made and a
description of the terms and conditions upon which the maturity of this Note may
be accelerated, and for a description of
the collateral securing this Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    This Note
is a "transferable
record" as defined in applicable law relating to electronic transactions.
Therefore, the holder of this Note may, on behalf of Borrower, create a
microfilm or optical disk or other electronic image of this Note that is an
authoritative copy as defined in such law. The holder of this Note may store the
authoritative copy of such Note in its electronic form and then destroy the
paper
original as part of the holder's normal business practices. The holder, on its
own behalf, may control and transfer such authoritative copy as permitted by
such law.

     

    All
documents attached hereto, including any appendices, schedules, riders, and
exhibits to this Revolving Credit Note, are hereby expressly incorporated by
reference.

     

     

    
      The Borrower hereby acknowledges the receipt of a copy of this Note.

       

      
        	 (Individual
      Borrower)	 	ITEX
      Corporation  
	 	 	 	Borrower Name
      (Organization)
	 	 	 	 	 
	 Borrower Name   	  
      N/A         	 	 	 
	 	 	 	 	 
	 	 	 	/s/ Steven
    White
	 	 	 	Name and Title Steven M. White,
      Chairman of the
      Board
	 	 	 	By	 
	 Borrower
      Name     	    N/A     	 	Name and
      Title       	 

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    INTEREST
RATE RIDER

     

    This
Rider is made part
of
the ___________________ Revolving
Credit _______ Note (the "Note") in the original amount of $2.5 0 0,00
0.0 0 ___________
by the undersigned borrower (the 'Borrower") in favor of U.S. BANK
N.A. ___(the "Bank") as of the date
identified below. The following interest rate description is hereby added to the
Note:

     

    Interest
on each advance hereunder shall accrue at an annual rate equal to 2.000% plus
the one-month LIBOR rate quoted by Bank from Reuters Screen LIBORO1 Page or any
successor thereto, which shall be that one-month LIBOR rate in effect and reset
each New York Banking Day, adjusted for any reserve requirement and any
subsequent costs arising from a change in government regulation, such rate
rounded up to the nearest one-sixteenth
percent. The term 'New York Banking Day' means any day (other than a
Saturday or Sunday) on which commercial banks are open for business in New York,
New York. Bank's internal records of applicable interest rates shall be
determinative in the absence of manifest error.

     

    
      
        	Dated as
      of: __ NOVEMBER
      4, 2009	 	 
	 	 	 	 
	(Individual
      Borrower)    	 	ITEX Corporation
      Borrower Name
      (Organization)
	 	 	 	a Nevada
      Corporation
	 	 	 	 	 
	 	 	 	/s/ Steven
    White
	Borrower
      Name  	 N/A     	 	Name
      and Title Steven
      M.
      White.
      Chairman
      of
      the Board   

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    REVOLVING
CREDIT AGREEMENT

     

    This
Revolving Credit Agreement (the "Agreement") is made and
entered into by and between the undersigned borrower (the "Borrower") and the
undersigned bank (the "Bank")
as of the date set forth on the last page of this Agreement.

     

    ARTICLE
I. LOANS

     

    
      1.1 Revolving Credit Loans.
From time to time prior to __ NOVEMER
30,
2010                               
(the "Maturity
Date") or the earlier
termination hereof, the Borrower may borrow from the Bank for working capital
purposes up to the aggregate principal amount outstanding at any one time of the
lesser of (i)$2,500,000.00                                           (the
"Loan Amount"), less
letters of credit issued by the Bank, or (ii) if applicable, the Borrowing Base (defined
below). All revolving loans hereunder will be evidenced by a single
promissory note of the Borrower payable to the order of the Bank in the
principal amount of the Loan Amount (the "Note"). Although the Note
will be expressed to be payable in the full Loan Amount, the Borrower will be
obligated to pay only the amounts actually disbursed hereunder, together with
accrued interest on the outstanding balance at the rates and on the dates
specified therein and such other charges provided for herein. In the event that
the principal amount outstanding under the Note exceeds the Borrowing Base at
any time, the Borrower will immediately, without request, prepay an amount
sufficient to eliminate such excess.

    

     

    1.2 Borrowing Base. The Borrowing
Base, if any, will
be as set forth in an addendum to this Agreement.

     

    1.3 Advances After Maturity or In Excess
of Maximum Loan Amount. The Bank shall have no obligation whatsoever, and
the Bank has no present intention, to make any advance after the Maturity Date
or which would cause the principal amount outstanding under this Agreement to
exceed the maximum loan amount or any other limitations on advances stated in
this Agreement. Notwithstanding the foregoing, the Bank may from time to time,
in its sole and absolute discretion, agree to make an advance after the Maturity
Date or which would cause the principal amount of advances outstanding under
this Agreement to exceed the maximum loan amount or any of the other limitations
on advances. The Borrower is and shall be and remain unconditionally liable to
the Bank for the amount of all advances, including, without limitation, advances
in excess of the maximum loan amount or any other limitation on advances and
advances made after the Maturity Date. Immediately upon the Bank's demand, the
Borrower shall pay to the Bank the amount of any advances made after the
Maturity Date or in excess of the maximum loan amount or any other limitation on
advances contained in this Agreement, together with interest on the principal
amount of such excess advances, for so long as such advances are outstanding, at
the highest interest rate from time to time in effect for such advances. Any
such advances shall not be deemed an extension of this Agreement nor an increase
in the maximum loan amount available for borrowing under this
Agreement.

     

    1.4  Advances and Paying Procedure.
The Bank is authorized and directed to credit any of the Borrower's
accounts with the Bank (or to the account the Borrower designates in writing)
for all loans made hereunder, and the Bank is authorized to debit such account
or any other account of the Borrower with the Bank for the amount of any
principal, interest or expenses due under the Note or other amount due hereunder
on the due date with respect thereto. If, upon any request by the Borrower to
the Bank to issue a wire transfer, there is an inconsistency between the name of
the recipient of the wire and its identification number as specified by the
Borrower, the Bank may, without liability, transmit the payment via wire based
solely upon the identification number.

     

    1.5  Closing Fee. The Borrower will
pay the Bank a one-time closing fee of $    n/a contemporaneously
with execution
of this Agreement. This fee is in addition to all other fees, expenses and other
amounts due hereunder.

     

    1.6  Loan Facility Fee. The
Borrower will pay a loan facility fee equal to:

     

    $           n/a     per
annum, payable annually in advance; (or)

                 n/a     % per annum of the
Loan Amount, payable annually in advance; (or)

                 n/a     % per annum of the
difference between the Loan Amount and the actual daily unpaid principal amount
of the Note outstanding from time to time, payable quarterly, in arrears, on the
last business day of each third calendar month, and at maturity;
(or)

     

                n/a      To
per annum of the actual daily unpaid principal amount of the Note outstanding
from time to time,
payable quarterly, in arrears, on the last business day of each third calendar
month, and at maturity.

     

    The loan
facility fee is payable
for the entire period that this Agreement is in effect, regardless of whether
any amounts are outstanding hereunder at any given time.

     

    1.7 Expenses and Attorneys' Fees.
Upon demand, the Borrower will immediately reimburse the Bank and any
participant in the Obligations (defined below) ("Participant") for all
attorneys' fees and all other costs, fees and out-of-pocket disbursements
incurred by the Bank or any Participant in connection with the preparation,
execution, delivery, administration, defense and enforcement of this Agreement
or any of the other Loan Documents (defined below), including attorneys' fees
and all other costs and fees (a) incurred before or after commencement of
litigation or at trial, on appeal or in any other proceeding, (b) incurred in
any bankruptcy proceeding and (c) related to any waivers or amendments with
respect thereto (examples of costs and fees include but are not limited to fees
and costs for: filing, perfecting or confirming the priority of the Bank's lien,
title searches or insurance, appraisals, environmental audits and other reviews
related to the Borrower, any collateral or the loans, if requested by the Bank).
The Borrower will also reimburse the Bank and any Participant for all costs of
collection, including all attorneys' fees, before and after judgment, and the
costs of preservation and/or liquidation of any collateral.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      1.8 Compensating Balances. The
Borrower will maintain on deposit with the Bank in non-interest bearing accounts
average daily
collected balances, in excess of that required to support account activity and
other credit facilities extended to the Borrower by the Bank, an amount at least
equal to the sum of (i) $___ n/aand
(ii)    
n/a % of the Loan
Amount as computed on a
monthly basis. If the Borrower fails to keep and maintain such balances, it will
pay a deficiency fee, payable within five days after receipt of a statement
therefor calculated on the amount by which the Borrower's average daily balances
are less than the requirements set forth above, computed at a rate equal to the
rate set forth in the Note.

    

     

    1.9 Conditions to Borrowing. The
Bank will not be obligated to make (or continue to make) advances hereunder
unless (i) the Bank has received executed originals of the Note and all other
documents or agreements applicable to the loans described herein, including but
not limited to the documents specified in Article III (collectively with this
Agreement the "Loan
Documents"), in form and content satisfactory to the Bank; (ii) if the
loan is secured, the Bank has received confirmation satisfactory to it that the
Bank has a properly perfected security interest, mortgage or lien, with the
proper priority; (iii) the Bank has received certified copies of the Borrower's
governance documents and certification of entity status satisfactory to the Bank
and all other relevant documents; (iv) the Bank has received a certified copy of
a resolution or authorization in form and content satisfactory to the Bank
authorizing the loan and all acts contemplated by this Agreement and all related
documents, and confirmation of proper authorization of all guaranties and other
acts of third parties contemplated hereunder; (v) if required by the Bank, the
Bank has been provided with an Opinion of the Borrower's counsel in form and
content satisfactory to the Bank confirming the matters outlined in Section 2.2
and such other matters as the Bank requests; (vi) no default exists under this
Agreement or under any other Loan Documents, or under any other agreements by
and between the Borrower and the Bank; and (vii) all proceedings taken in
connection with the transactions contemplated by this Agreement (including any
required environmental assessments), and all instruments, authorizations and
other documents applicable thereto, are satisfactory to the Bank and its
counsel.

     

    ARTICLE
II. WARRANTIES AND COVENANTS

     

    While any
part of the credit granted to the Borrower under this Agreement or the other
Loan Documents is available or any obligations under any of the Loan Documents
are unpaid or outstanding, the Borrower continuously warrants and agrees as
follows:

     

    2.1 Accuracy of Information. All
information, certificates or statements given to the Bank pursuant to this
Agreement and the other Loan Documents will be true and complete when
given.

     

    2.2 Organization and Authority;
Litigation. This Agreement and the other Loan Documents are the legal,
valid and binding obligations of the Borrower, enforceable against the Borrower
in accordance with their terms. The execution, delivery and performance of this
Agreement and all other Loan Documents to which the Borrower is a parry (i) are
within the borrower's power; (ii) have been duly authorized by all appropriate
entity action; (iii) do not require the approval of any governmental agency; and
(iv) will not violate any law, agreement or restriction by which the Borrower is
bound. If the Borrower is not an individual, the Borrower is validly existing
and in good standing under the laws of its state of organization, has all
requisite power and authority and possesses all licenses necessary to conduct
its business and own its properties. There is no litigation or administrative
proceeding threatened or pending against the Borrower which would, if adversely
determined, have a material adverse effect on the Borrower's financial condition
or its property.

     

    2.3 Existence; Business Activities;
Assets; Change of Control. The Borrower will (i) preserve its existence,
rights and franchises; (ii) not make any material change in the nature or manner
of its business activities; (iii) not liquidate, dissolve, acquire another
entity or merge or consolidate with or into another entity or change its form of
organization; (iv) not amend its organizational documents in any manner that may
conflict with any term or condition of the Loan Documents; and (v) not sell,
lease, transfer or otherwise dispose of all or substantially all of its assets.
Other than the transfer to a trust beneficially controlled by the transferor, no
event shall occur which causes or results in a transfer of majority ownership of
the Borrower while any Obligations are outstanding or while the Bank has any
obligation to provide funding to the Borrower.

     

    2.4 Use of Proceeds; Margin Stock;
Speculation. Advances by the Bank hereunder will be used exclusively by
the Borrower for working capital and other regular and valid purposes. The
Borrower will not, without the prior written consent of the Bank, redeem,
purchase, or retire any of the capital stock or declare or pay any dividends, or
make any other payments or distributions of a similar type or nature including
withdrawal distributions. The Borrower will not use any of the loan proceeds to
purchase or carry "margin" stock (as defined in Regulation U of the Board of
Governors of the Federal Reserve System). No part of any of the proceeds will be
used for speculative investment purposes, including, without limitation,
speculating or hedging in the commodities and/or futures market.

     

    2.5 Environmental Matters. Except
as disclosed in a written schedule attached to this Agreement (if no schedule is
attached, there are no exceptions), there exists no uncorrected violation by the
Borrower of any federal, state or local laws (including statutes, regulations,
ordinances or other governmental restrictions and requirements) relating to the
discharge of air pollutants, water pollutants or process waste water or
otherwise relating to the environment or Hazardous Substances as hereinafter
defined, whether such laws currently exist or are enacted in the future
(collectively "Environmental
Laws"). The term "Hazardous Substances" will
mean any hazardous or toxic wastes, chemicals or other substances, the
generation, possession or existence of which is prohibited or governed by any
Environmental Laws. The Borrower is not subject to any judgment, decree, order
or citation, or a parry to (or threatened with) any litigation or administrative
proceeding, which asserts that the Borrower (i) has violated any Environmental
Laws; (ii) is required to clean up, remove or take
remedial or other action with respect to any Hazardous Substances (collectively
"Remedial Action"); or
(iii) is required to pay all or a portion of the cost of any Remedial Action, as
a potentially responsible party. Except as disclosed on the Borrower's
environmental questionnaire provided to the Bank, there are not now, nor to the
Borrower's knowledge after reasonable investigation have there ever been, any
Hazardous Substances (or tanks or other facilities for the storage of Hazardous
Substances) stored, deposited, recycled or disposed of on, under or at any real
estate owned or occupied by the Borrower during the periods that the Borrower
owned or occupied such real estate, which if present on the real estate or in
soils or ground water, could require Remedial Action. To the Borrower's
knowledge, there are no proposed or pending changes in Environmental Laws which
would adversely affect the Borrower or its business, and there are no conditions
existing currently or likely to exist while the Loan Documents are in effect
which would subject the Borrower to Remedial Action or other liability. The
Borrower currently complies with and will continue to timely comply with all
applicable Environmental Laws; and will provide the Bank, immediately upon
receipt, copies of any correspondence, notice, complaint, order or other
document from any source asserting or alleging any circumstance or condition
which requires or may require a financial contribution by the Borrower or
Remedial Action or other response by or on the part of the Borrower under
Environmental Laws, or which seeks damages or civil, criminal or punitive
penalties from the Borrower for an alleged violation of Environmental
Laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.6 Compliance with Laws. The
Borrower has complied with all laws applicable to its business and its
properties, and has all permits, licenses and approvals required by such laws,
copies of which have been provided to the Bank.

     

    2.7 Restriction on Indebtedness.
The Borrower will not create, incur, assume or have outstanding any
indebtedness for borrowed money (including capitalized leases) except (i) any
indebtedness owing to the Bank and its affiliates, and (ii) any other
indebtedness outstanding on the date hereof, and shown on the Borrower's
financial statements delivered to the Bank prior to the date hereof, provided
that such her indebtedness will not be increased.

     

    2.8 Restriction on Liens. The
Borrower will not create, incur, assume or permit to exist any mortgage, pledge,
encumbrance or other lien or levy upon or security interest in any of the
Borrower's property now owned or hereafter acquired, except (i) taxes and
assessments which are either not delinquent or which are being contested in good
faith with adequate reserves provided; (ii) easements, restrictions and minor We
irregularities which do not, as a practical matter, have an adverse effect upon
the ownership and use of the affected property; (iii) liens in favor of the Bank
and its affiliates; and (iv) other liens disclosed in writing to the Bank prior
to the date hereof.

     

    2.9 Restriction on Contingent
Liabilities. The Borrower will not guarantee or become a surety or
otherwise contingently liable for any obligations of others, except pursuant to
the deposit and collection of checks and similar matters in the ordinary course
of business.

     

    2.10
Insurance. The Borrower
will maintain insurance to such extent, covering such risks and with such
insurers as is usual and customary for businesses operating similar properties,
and as is satisfactory to the Bank, including insurance for fire and other risks
insured against by extended coverage, public liability insurance and workers'
compensation insurance; and will designate the Bank as loss payee with a
'Lender's Loss Payable' endorsement on any casualty policies and take such other
action as the Bank may reasonably request to ensure that the Bank will receive
(subject to no other interests) the insurance proceeds on the Bank's
collateral.

     

    2.11
Taxes and Other Liabilities.
The Borrower will pay and discharge, when due, all of its taxes,
assessments and other liabilities, except when the payment thereof is being
contested in good faith by appropriate procedures which will avoid foreclosure
of liens securing such items, and with adequate reserves provided
therefor.

     

    2.12
Financial Statements and
Reporting. The financial statements and other information previously
provided to the Bank or provided to the Bank in the future are or will be
complete and accurate and prepared in accordance with generally accepted
accounting principles. There has been no material adverse change in the
Borrower's financial condition since such information was provided to the Bank.
The Borrower will (i) maintain accounting records in accordance with generally
recognized and accepted principles of accounting consistently applied throughout
the accounting periods involved; (ii) provide the Bank with such information
concerning its business affairs and financial condition (including insurance
coverage) as the Bank may request; and (iii) without request, provide the Bank
with such specific financial statements, certifications and/or information as
may be set forth in an addendum to this Agreement.

     

    2.13
Inspection of Properties and
Records; Fiscal Year. The Borrower will permit representatives of the
Bank to visit and inspect any of the properties and examine any of the books and
records of the Borrower at any reasonable time and as often as the Bank may
reasonably desire. The Borrower will not change its fiscal year.

     

    2.14
Financial Status.
Financial Covenants, if any, will be as set forth in an addendum to this
Agreement.

     

    2.15 Paid-In-Full
Period.  ______If checked here, all revolving loans under this
Agreement and the Note must be paid in full for a period of at
least         
n/a consecutive
days during each fiscal year.

     

    ARTICLE
III. COLLATERAL AND GUARANTIES

     

    3.1 Collateral. This Agreement and
the Note are secured by any and all security interests, pledges, mortgages/deeds
of trust (except any mortgage/deed of trust expressly limited by its terms to a
specific obligation of Borrower to Bank) or liens now or hereafter in existence
granted to the Bank to secure indebtedness of the Borrower to the Bank,
including without limitation as described in the following
documents:

     

    
      
        	
                o  Real
      Estate Mortgage(s)/Deed(s) of Trust dated

              	 
      
	
                covering
      real estate located at

              	 
      
	 	 
	
                x Security
      Agreement(s) dated  06 /27 /0
    5

              	 
      
	
                o  Possessory Collateral Pledge
      Agreement(s) dated

              	 
      
	
                o  Other

              	 
      
	 	 

      

    

     

    3.2 Guaranties. This Agreement and
the Note are guaranteed by each and every guaranty now or hereafter in existence
guarantying the indebtedness of the Borrower to the Bank (except for any
guaranty expressly limited by its terms to a specific separate obligation of
Borrower to the Bank) including, without limitation, the following:

    
      

    

    
      

    

    
      
        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.3 Credit Balances; Setoff. As
additional security for the payment of the obligations described in the Loan
Documents and any other obligations of the Borrower to the Bank of any nature
whatsoever (collectively the "Obligations"), the Borrower
hereby grants to the Bank a security interest in, a lien on and an express
contractual right to set off against all depository account balances, cash and
any other property of the Borrower now or hereafter in the possession of the
Bank and the right to refuse to allow withdrawals from any account (collectively
"Setoff"). The Bank may,
at any time upon the occurrence of a default hereunder (notwithstanding any
notice requirements or grace/cure periods under this or other agreements between
the Borrower and the Bank) Setoff against the Obligations whether or not the Obligations (including future
installments) are then due or have been accelerated, all without any advance or
contemporaneous notice or demand of any kind to the Borrower, such notice and
demand being expressly waived.

     

    The
omission of any reference to an agreement in Sections 3.1 and 3.2 above will not
affect the validity or enforceability thereof. The rights and remedies of the
Bank outlined in this Agreement and the documents identified above are intended
to be cumulative.

     

    ARTICLE
IV. DEFAULTS

     

    4.1 Defaults. Notwithstanding any
cure periods described below, the Borrower will immediately notify the Bank in
writing when the Borrower obtains knowledge of the occurrence of any default
specified below. Regardless of whether the Borrower has given the
required notice, the occurrence of one or more of the following will constitute
a default:

     

    
      	 	(a) 	Nonpayment. The Borrower
      shall fail to pay (i) any interest due on the Note or any fees, charges,
      costs or expenses under the Loan Documents by 5 days after the same
      becomes due; or (ii) any principal amount of the Note when
  due.
	 	 	 
	
               
      

            	
              (b)

            	
              Nonperformance. The
      Borrower or any guarantor of Borrower's Obligations to the Bank ("Guarantor") shall fail
      to perform or observe any agreement, term, provision, condition, or
      covenant (other than a default occurring under (a), (c), (d), (e), (f) or
      (g) of this Section 4.1) required to be performed or observed by the
      Borrower or any Guarantor hereunder or under any other Loan Document or
      other agreement with or in favor of the
Bank.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Misrepresentation. Any
      financial information, statement, certificate, representation or warranty
      given to the Bank by the Borrower or any Guarantor (or any of their
      representatives) in connection with entering into this Agreement or the
      other Loan Documents and/or any borrowing thereunder, or required to be
      furnished under the terms thereof, shall prove untrue or misleading in any
      material respect (as determined by the Bank in the exercise of its
      judgment) as of the time when
given.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Default on her Obligations.
      The Borrower or any Guarantor shall be in default under the terms
      of any loan agreement, promissory note, lease, conditional sale contract
      or other agreement, document or instrument evidencing, governing or
      securing any indebtedness owing by the Borrower or any Guarantor to the
      Bank or any indebtedness in excess of $10,000 owing by the Borrower to any
      third party, and the period of grace, if any, to cure said default shall
      have passed.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Judgments. Any judgment
      shall be obtained against the Borrower or any Guarantor which, together
      with all other outstanding unsatisfied judgments against the Borrower (or
      such Guarantor), shall exceed the sum of
      $10,000 and shall remain unvacated, unbonded or unstayed for a period of
      30 days following the date of entry thereof.

            
	 	 	 
	 	

              (f)

            	

              Inability to Perform;
      Bankruptcy/Insolvency. (I) The Borrower or any Guarantor shall die
      or cease to exist; or (ii) any Guarantor shall attempt to revoke any
      guaranty of the Obligations described herein, or any guaranty becomes
      unenforceable in whole or in part for any reason; or (iii) any bankruptcy,
      insolvency or receivership proceedings, or an assignment for the benefit
      of creditors, shall be commenced under any Federal or state law by or
      against the Borrower or any Guarantor; or (iv) the Borrower or any
      Guarantor shall become the subject of any out-of-court settlement with its
      creditors; or (v) the Borrower or any Guarantor is unable or admits in
      writing its inability to pay its debts as they mature; or (vi) if the
      Borrower is a limited liability company, any member thereof shall withdraw
      or otherwise become disassociated from the
  Borrower.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Adverse Change; Insecurity.
      (i) There is a material adverse change in the business, properties,
      financial condition or affairs of the Borrower or any Guarantor, or in any
      collateral securing the Obligations; or (ii) the Bank in good faith deems
      itself insecure.

            

    

     

    4.2 Termination of Loans; Additional Bank
Rights. Upon the Maturity Date or the occurrence of any of the events
identified in Section 4.1, the Bank may at any time (notwithstanding any notice
requirements or grace/cure periods under this or other agreements between the
Borrower and the Bank) (i) immediately terminate its obligation, if any, to make
additional loans to the Borrower; (ii) Setoff; and/or (iii) take such other
steps to protect or preserve the Bank's interest in any collateral, including
without limitation, notifying account debtors to make payments directly to the
Bank, advancing funds to protect any collateral and insuring collateral at the
Borrower's expense; all without demand or notice of any kind, all of which are
hereby waived.

     

    4.3 Acceleration of Obligations.
Upon the Maturity Date or the occurrence of any of the events identified
in Sections 4.1(a) through 4.1(e) and 4.1(g), and the passage of any applicable
cure periods, the Bank may at any time thereafter, by written notice to the
Borrower, declare the unpaid principal balance of any Obligations, together with
the interest accrued thereon and other amounts accrued hereunder and under the
other Loan Documents, to be immediately due and payable; and the unpaid balance
will thereupon be due and payable, all without presentation, demand, protest or
further notice of any kind, all of which are hereby waived, and notwithstanding
anything to the contrary contained herein or in any of the other Loan Documents.
Upon the occurrence of any event under Section 4.1(f), the unpaid principal
balance of any Obligations, together with all interest accrued thereon and other
amounts accrued hereunder and under the other Loan Documents, will thereupon be
immediately due and payable, all without presentation, demand, protest or notice
of any kind, all of which are hereby waived, and notwithstanding anything to the
contrary contained herein or in any of the other Loan Documents. Nothing contained in Section 4.1,
Section 4.2 or this section will limit the Bank's right to Setoff as provided in
Section 3.3 or otherwise in this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    4.4   Other Remedies.
Nothing in this Article IV is intended to restrict the Bank's rights
under any of the Loan Documents or at law, and the Bank may exercise all such
rights and remedies as and when they are available.

     

    ARTICLE
V. OTHER TERMS

    5.1 Additional Terms;
Addendum/Supplements. The warranties, covenants, conditions and other
terms described in this Section and/or in the Addendum and/or other attached
document(s) referenced in this Section are incorporated into this
Agreement:

    
      
        

      

    

    
      
        

      

      
        

      

       

    

              ARTICLE VI.
MISCELLANEOUS

     

    6.1 Delay; Cumulative Remedies. No
delay on the part of the Bank in exercising any right, power or privilege
hereunder or under any of the other Loan Documents will operate as a waiver
thereof, nor will any single or partial exercise of any right, power or
privilege hereunder preclude other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein specified
are cumulative and are not exclusive of any rights or remedies which the Bank
would otherwise have.

     

    6.2 Relationship to her Documents.
The warranties, covenants and other obligations of the Borrower (and the
rights and remedies of the Bank) that are outlined in this Agreement and the
other Loan Documents are intended to supplement each other. In the event of any
inconsistencies in any of the terms in the Loan Documents, all terms will be
cumulative so as to give the Bank the most favorable rights set forth in the
conflicting documents, except that if there is a direct conflict between any
preprinted terms and specifically negotiated terms (whether included in an
addendum or otherwise), the specifically negotiated terms will
control.

     

    6.3 Successors. The rights,
options, powers and remedies granted in this Agreement and the other Loan
Documents shall be binding upon the Borrower and the Bank and their respective
successors and assigns, and shall inure to the benefit of the Borrower and the
Bank and the successors and assigns of the Bank, including without limitation
any purchaser of any or all of the rights and obligations of the Bank under the
Note and the other Loan Documents. The Borrower may not assign its rights or
obligations under this Agreement or any other Loan Documents without the prior
written consent of the Bank.

     

    6.4 Disclosure. The Bank may, in
connection with any sale or potential sale of all or any interest in the Note
and other Loan Documents, disclose any financial information the Bank may have
concerning the Borrower to any purchaser or potential purchaser. From time to
time, the Bank may, in its discretion and without obligation to the Borrower,
any Guarantor or any other third party, disclose information about the Borrower
and this loan to any Guarantor, surety or other accommodation party. This
provision does not obligate the Bank to supply any information or release the
Borrower from its obligation to provide such information, and the Borrower
agrees to keep all Guarantors, sureties or other accommodation parties advised
of its financial condition and other matters which may be relevant to their
obligations to the Bank.

     

    6.5 Indemnification. Except for
harm arising from the Bank's willful misconduct, the Borrower hereby indemnifies
and agrees to defend and hold the Bank harmless from any and all losses, costs,
damages, claims and expenses of any kind suffered by or asserted against the
Bank relating to claims by third parties arising out of the financing provided
under the Loan Documents or related to any collateral (including, without
limitation, the Borrower's failure to perform its obligations relating to
Environmental Matters described in Section 2.5 above). This indemnification and
hold harmless provision will survive the termination of the Loan Documents and
the satisfaction of the Obligations due the Bank.

     

    6.6 Notice of Claims Against Bank;
Limitation of Certain Damages. In order to allow the Bank to mitigate any
damages to the Borrower from the Bank's alleged breach of its
duties under the Loan Documents or any other duty, if any, to the
Borrower, the Borrower agrees to give the Bank immediate written notice of any
claim or defense it has against the Bank, whether in tort or contract, relating
to any action or inaction by the Bank under the Loan Documents, or the
transactions related thereto, or of any defense to payment of the Obligations
for any reason. The requirement of providing timely notice to the Bank
represents the parties' agreed-to standard of performance regarding claims
against the Bank. Notwithstanding any claim that the Borrower may have against
the Bank, and regardless of any notice the Borrower may have given the Bank,
the Bank will not be liable to
the Borrower for consequential and/or special damages arising therefrom,
except those damages arising from the Bank's willful
misconduct.

     

    6.7 Notices. Notice of any record
shall be deemed delivered when the record has been (a) deposited in the United
States Mail, postage pre-paid, (b) received by overnight delivery service, (c)
received by telex, (d) received by telecopy, (e) received through the
intern, or (l when personally delivered.

     

    6.8 Payments. Payments due
under the Note and other Loan Documents will be made in lawful money of the
United States. All payments may be applied by the Bank to principal, interest
and other amounts due under the Loan Documents in any order which the Bank
elects.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    6.9   Applicable Law and Jurisdiction;
Interpretation; Joint Liability; Severability. This Agreement and all
other Loan Documents will be governed by and interpreted in accordance with the
internal laws of the State of Oregon except to the
extent superseded by Federal law. THE BORROWER HEREBY CONSENTS TO THE EXCLUSIVE
JURISDICTION OF ANY STATE OR FEDERAL COURT SITUATED IN THE COUNTY OR FEDERAL
JURISDICTION OF THE BANK'S BRANCH WHERE THE LOAN WAS ORIGINATED, AND WAIVES ANY
OBJECTION BASED ON FORUM NON CONVENIENS,
WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS
AGREEMENT, THE NOTE, THE COLLATERAL, ANY OTHER LOAN DOCUMENT, OR ANY
TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR INTERPRETATION OF ANY OF
THE FOREGOING. Nothing herein will
affect the Bank's rights to serve process in any manner permitted by law, or
limit the Bank's right to bring proceedings against the Borrower in the
competent courts of any other jurisdiction or jurisdictions. This Agreement, the
other Loan Documents and any amendments hereto (regardless of when executed)
will be deemed effective and accepted only upon the Bank's receipt of the
executed originals thereof. If there is more than one Borrower, the liability of
the Borrowers will be joint and several, and the reference to 'Borrower will be
deemed to refer to all Borrowers. Invalidity of any provision of this Agreement
shall not affect the validity of any other provision.

     

    6.10
Copies; Entire Agreement;
Modification. The Borrower hereby acknowledges the receipt of a copy of
this Agreement and all other Loan Documents. This Agreement is a 'transferable
record" as defined in applicable law relating to electronic transactions.
Therefore, the holder of this Agreement may, on behalf of Borrower, create a
microfilm or optical disk or other electronic image of this Agreement that is an
authoritative copy as defined in such law. The holder of this Agreement may
store the authoritative copy of such Agreement in its electronic form and then
destroy the paper original as part of the holder's normal business practices.
The holder, on its own behalf, may control and transfer such authoritative copy
as permitted by such law.

     

    IMPORTANT:
READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY
BECAUSE ONLY THOSE TERMS IN WRITING, EXPRESSING CONSIDERATION AND SIGNED BY THE
PARTIES ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS
WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. THE TERMS OF THIS AGREEMENT MAY ONLY
BE CHANGED BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE SHALL ALSO BE EFFECTIVE
WITH RESPECT TO ALL OTHER CREDIT AGREEMENTS NOW IN EFFECT BETWEEN BORROWER AND
THE BANK. A MODIFICA­TION OF ANY OTHER CREDIT AGREEMENTS NOW IN EFFECT
BETWEEN BORROWER AND THE BANK, WHICH OCCURS AFTER RECEIPT BY BORROWER OF THIS
NOTICE, MAY BE MADE ONLY BY ANOTHER WRITTEN INSTRUMENT. ORAL OR IMPLIED
MODIFICATIONS TO SUCH CREDIT AGREEMENTS ARE NOT ENFORCEABLE AND SHOULD NOT BE
RELIED UPON.

     

    6.11 Waiver of Jury Trial. TO THE EXTENT
PERMITTED BY LAW, THE BORROWER AND THE BANK HEREBY JOINTLY AND SEVERALLY WAIVE
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING RELATING TO ANY
OF THE LOAN DOCUMENTS, THE OBLIGATIONS THEREUNDER, ANY COLLATERAL SECURING THE
OBLIGATIONS, OR ANY TRANSACTION ARISING THEREFROM OR
CONNECTED THERETO. THE BORROWER AND THE BANK EACH REPRESENTS TO THE OTHER THAT THIS WAIVER IS
KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.

     

    6.12  Attachments. All documents attached
hereto, including any appendices, schedules, riders, and exhibits to this
Agreement, are hereby expressly incorporated by reference.

     

    IN WITNESS WHEREOF, the undersigned
have executed this REVOLVING CREDIT AGREEMENT as of NOVEMBER
4, 2009

     

     

    
      
        
          	 (Individual
      Borrower)	 	ITEX Corporation  
	 	 	 	Borrower Name
      (Organization)
	 	 	 	 	 
	 	 	 	/s/ Steven
    White
	 	 	 	Name and Title Steven M. White,
      Chairman of the
      Board
	 	 	 	By	 
	 Borrower
      Name     	    N/A     	 	Name and
      Title       	 
	 	 	 	 	
                   (Bank)

                
	 	 	 	U.S. BANK
  N.A.
	 	 	 	 	 
	 	 	 	/s/ Timothy J
      Flynn
	 	 	 	Name and Title	Timothy J.
      Flynn. Vice President

        

      

    

     

    Borrower
Address 3625 132nd
Avenue SE. Suite 200. Bellevue. WA 98006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ADDENDUM
TO REVOLVING CREDIT
AGREEMENT AND NOTE

     

    This
Addendum is made part of the Revolving Credit Agreement and Note (the
"Agreement") made and entered into by and between the undersigned borrower (the
"Borrower") and the
undersigned bank (the "Bank") as of the date identified below. The warranties,
covenants and other terms described below are hereby added to the
Agreement.

     

    Amended and Restated Note.
This Amended and Restated Note (this "Note") is issued (i) as an
amendment and restatement of, but not in payment of, Borrower's promissory note
dated December 2, 2004, payable to the order of the Bank in the original
principal amount of $750,000.00, as amended, supplemented, extended or otherwise
modified (the "Original Note"), and (ii) to evidence an increase of
$1,750,000.00 in the aggregate amount that may be advanced under this Note,
subject to the terms of this Note and any loan agreement related to this Note.
All interest accrued but unpaid on the Original Note shall be due and payable in
full on the first interest payment date under this Note. All agreements and
documents evidencing, securing, guarantying and otherwise related to the
Original Note or the indebtedness evidenced thereby, whether or not identified
in this Note, continue in full force and effect, except to the extent that any
such agreement or document may have been wholly or partially released in a
writing signed by the Bank. Any and all references to the Replaced Note in any
agreement or document are hereby amended to refer to this Note.

     

    Amended and Restated Agreement.
This Amended and Restated Agreement (this "Restated Agreement") is issued
as an amendment and restatement of the loan agreement or credit agreement
between Borrower and Bank dated December 2, 2004 pertaining to a loan facility
in the original principal amount of $750,000.00, as amended, supplemented,
extended or otherwise modified (the "Original Agreement"). This
Restated Agreement also evidences an increase of $1,750,000.00 in the aggregate
amount that may be advanced under the Original Agreement, subject to the terms
of this Restated Agreement. All agreements and documents evidencing, securing,
guarantying and otherwise related to the Original Agreement or the indebtedness
evidenced thereby, whether or not identified in this Restated Agreement,
continue in full force and effect, except to the extent that any such agreement
or document may have been wholly or partially released in a writing signed by
Bank. Any and all references to the Original Agreement in any agreement or
document are hereby amended to refer to this Restated Agreement.

     

    Financial Information and Reporting.
This provision replaces in its entirety the provision of the Agreement
titled "Financial Information and Reporting". Financial terms used herein which
are not specifically defined herein shall have the meanings ascribed to them
under generally accepted accounting principles. For any Borrower who does not
have a separate fiscal year end for tax reporting purposes, the fiscal year wi11
be deemed to be the calendar year. The financial statements and other
information previously provided to Bank or provided to Bank in the future are or
will be complete and accurate and prepared in accordance with generally accepted
accounting principles. There has been no material adverse change in Borrower's
financial condition since such information was provided to Bank. Borrower will
(i) maintain accounting records in accordance with generally recognized and
accepted principles of accounting consistently applied throughout the accounting
periods involved; (ii) provide Bank with such information concerning its
business affairs and financial condition (including insurance coverage) as Bank
may request; and (iii) without request, provide to Bank the following financial
information, in form and content acceptable to Bank, pertaining to
Borrower:

     

    Annual Financial Statements:
Not later than 90 days after the end of each fiscal year, annual
financial statements, audited by a certified public accounting firm acceptable
to Bank.

     

    Interim Financial Statements:
Not later than 30 days after the end of each fiscal quarter, interim financial
statements, prepared by Borrower.

     

    Financial Covenants. Financial
terms used herein which are not specifically defined herein shall have the
meanings ascribed to them under generally accepted accounting principles. For
any Borrower who does not have a separate fiscal year end for tax reporting
purposes, the fiscal year will be deemed to be the calendar year. Borrower
(herein referred to as the "Subject Party") will maintain
the following:

     

    Fixed Charge Coverage Ratio as
of the end of each fiscal quarter for the four (4) fiscal quarters then ended of
at least 1.50 to 1.

     

    "Fixed Charge Coverage Ratio"
shall mean (a) EBITDAR minus cash taxes, cash dividends, cash
distributions and Maintenance Capital Expenditures divided by (b) the sum of all
required principal payments (on short and long term debt and capital leases),
interest and rental or lease expense.

     

    "EBITDAR" shall mean net
income, plus interest expense, plus income tax expense, plus depreciation
expense plus amortization expense plus rent or lease expense.

     

    "Maintenance Capital Expenditures"
shall mean 50% of the Subject Party's depreciation expense for the period
specified.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Tangible Net Worth at all
times in the amount of at least $7,000,000.00.

     

    "Tangible Net Worth" shall mean the total of
all assets properly appearing on the balance sheet of the Subject Parry in
accordance with generally accepted accounting principles, less the sum of the
following:

     

    
      	
              (i)

            	
              the
      book amount of all such assets which would be treated as intangibles under
      generally accepted accounting principles, including, without limitation,
      all such items as goodwill, trademarks, trademark rights, trade names,
      trade name rights, brands, copyrights, patents, patent rights, licenses,
      deferred charges and unamortized debt discount and
  expense;

            

    

     

    
      	
              (ii)

            	
              any
      write-up in the book value of any such assets resulting from a revaluation
      thereof subsequent to the date of the
Agreement;

            

    

     

    
      	
              (iii)

            	
              all
      reserves, including reserves for depreciation, obsolescence, depletion,
      insurance, and inventory valuation, but excluding contingency reserves not
      allocated for any particular purpose and not deducted from
      assets;

            

    

     

    
      	
              (iv) 

            	
              the
      amount, if any, at which any shares of stock of the Subject Party appear
      on the asset side of such balance
sheet;

            

    

     

    
      	
              (v) 

            	
              all
      liabilities of the Subject Party shown on such balance
    sheet;

            

    

     

    
      	
              (vi) 

            	
              all
      investments in foreign affiliates and non-consolidated domestic
      affiliates; and

            

    

     

    
      	
              (vii)

            	
              all
      accounts or notes due to the Subject Party from any shareholder, director,
      officer, employee or affiliate of the Subject Party or from any relative
      of such party.

            

    

     

    Dated as
of November 4,
2009

     

    
      	 	

              ITEX
      Corporation

              a
      Nevada corporation

            
	 	 
	 	/s/ Steven
      White
	 	Name and
      Title:  Steven M. White, Chairman of the Board
	 	 
	 	 
	 	

              Agreed
      to:

              U.S.
      Bank N.A.

            
	 	 
	 	/s/ Timothy J.
      Flynn   
	 	Name and
      Title:  Timothy J. Flynn, Vice President
	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

    

    NOTICE
OF FORCED PLACED INSURANCE

     

    WARNING

     

    Unless
you provide us with evidence of the insurance coverage as required by our
contract or loan agreement, we may purchase insurance at your expense to protect
our interest. This insurance may, but need not, also protect your interest. If
the collateral becomes damaged, the coverage we purchase may not pay any claim
you make or any claim made against you. You may later cancel this coverage by
providing evidence that you have obtained property coverage
elsewhere.

     

    You are
responsible for the cost of any insurance purchased by us. The cost of this
insurance may be added to your contract or loan balance. If the cost is added to
your contract or loan balance, the interest rate on the underlying contract or
loan will apply to this added amount. The effective date of coverage may be the
date your prior coverage lapsed or the date you failed to provide proof of
coverage.

     

    The
coverage we purchase may be considerably more expensive than insurance you can
obtain on your own and may not satisfy any need for property damage coverage or
any mandatory liability insurance requirements imposed by applicable
law.

     

    For purposes of this warning, "you"
means any of the undersigned borrower(s) or grantor(s)/mortgagor(s)/debtor(s),
and "we" or "us" means U.S. BANK
N.A. ___

     

    Receipt
of this notice is acknowledged as of NOVEMBER
4 , 2 00 s

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