Document:

EX-10.01

AMENDED AND RESTATED ESCROW AGREEMENT

This Amended and Restated Escrow Agreement (“Amended Agreement”) dated as of the
effective date (the “Effective Date”) set forth on schedule 1 attached hereto (“Schedule 1”) by and
among the purchaser identified on Schedule 1 (the “Purchaser”), the seller identified on Schedule 1
(the “Seller”) and J.P. Morgan Trust Company, N.A., as escrow agent hereunder (the “Escrow
Agent”).

WHEREAS, the Purchaser, Seller and Escrow Agent entered into that certain Escrow Agreement, dated
as of May 14, 2004 (the “Agreement”), whereby the Purchaser deposited the sum indicated as the
escrow deposit on Schedule 1 of the Agreement (the “Escrow Deposit”) into an escrow account held by
the Escrow Agent;

WHEREAS, the Agreement was entered into to allow the Purchaser to satisfy the surety bond
requirements set forth in two farmout agreements between the Seller and Purchaser entered into on
June 17, 2003 and amended on December 15, 2003, one covering the assignment of a participating
interest under the Qinnan PSC and the second covering the assignment of a participating interest
under the Shouyang PSC (collectively the “Farmout Agreements”);

WHEREAS, the Purchaser and Seller are amending the Agreement to reflect amendments to the Farmout
Agreements agreed upon on December 17, 2004 between the parties (the “Amended Farmout Agreements”);
and

WHEREAS, the Purchaser has deposited the Escrow Deposit and the Purchaser and Seller wish such
Escrow Deposit to be subject to the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth,
the parties hereto agree as follows:

1. Appointment. The Purchaser and Seller, pursuant to the Agreement, appointed the Escrow Agent as
their escrow agent for the purposes set forth herein, and the Escrow Agent will continue such
appointment under the terms and conditions set forth herein.

2. Escrow Fund. Simultaneous with the execution and delivery of the Agreement, the Purchaser
deposited with the Escrow Agent the Escrow Deposit. The Escrow Agent shall continue to hold the
Escrow Deposit and, subject to the terms and conditions hereof, shall invest, reinvest and
distribute the Escrow Deposit and the proceeds thereof (the “Escrow Fund”) as directed in Sections
3 and 4.

3. Investment of Escrow Fund. During the term of this Amended Agreement, the Escrow Fund shall be
invested and reinvested by the Escrow Agent in the Investment as indicated and set forth on
Schedule 1 or such other investments as shall be directed in writing by both Purchaser and Seller
and as shall be acceptable to the Escrow Agent. All investment orders involving U.S. Treasury
obligations, commercial paper and other direct investments will be executed through JPMorgan
Fleming Asset Management (JPMFAM), in the investment management division of JPMorgan Chase.
Subject to principles of best execution, transactions are effected on behalf of the Escrow Fund
through broker-dealers selected by JPMFAM. In this regard, JPMFAM seeks to attain the best overall
result for the Escrow Fund, taking into consideration quality of service and reliability. An
agency fee will be assessed in connection with each transaction. Periodic statements will be
provided to Purchaser and Seller reflecting transactions executed on behalf of the Escrow Fund.
The Purchaser and Seller, upon written request, will receive a statement of transaction details
upon completion of any securities transaction in the Escrow Fund without any additional cost. The
Escrow Agent shall have the right to liquidate any investments held in order to provide funds
necessary to make required payments under this Amended Agreement. The Escrow Agent shall have no
liability for any loss sustained as a result of any investment in an investment indicated on
Schedule 1 or any investment made pursuant to the instructions of the parties hereto or as a result
of any liquidation of any investment prior to its maturity or for the failure of the parties to
give the Escrow Agent instructions to invest or reinvest the Escrow Fund.

4. Disposition and Termination. Compliance with this Amended Agreement will fulfill the surety
bond requirement previously contracted for by the Purchaser and Seller in the Farmout Agreements,
as amended in the Amended Farmout Agreements. Section 6.4 of both Amended Farmout Agreements
require the Purchaser to provide work performance guarantees in the form of an escrow account of a
total of $1 million for phase one of the exploration period covering costs to be incurred as
required under Article 6.5 of the Qinnan Amended Farmout Agreement and Article 6.8 of the Qinnan
Farmout Agreement and for phase one of the exploration period covering costs to be incurred as
required under Article 6.7 of the Shouyang Farmout Agreement. This Escrow Deposit was tendered in
accordance with both the Agreement and the Amended Agreement.

The Escrow Deposit for phase one of the Qinnan Amended Farmout Agreement and Shouyang Amended
Farmout Agreement shall be for a total of $1 million, to cover costs under Article 6.5 of the
Qinnan Amended Farmout Agreement, Article 6.8 of the Qinnan Farmout Agreement and Article 6.7 of
the Shouyang Farmout Agreement, and shall remain open through January 31, 2005, unless the
Purchaser extends into Phase two, in which case the escrow account shall remain open until December
31, 2005. In the event the Purchaser exercises the option to extend into phase two as contemplated
by Article 6.6 of the Qinnan Amended Farmout Agreement and Article 6.5 of the Shouyang Amended
Farmout Agreement, the amount required to be held in escrow to cover the costs incurred under
Article 6.6 of the Qinnan Amended Farmout Agreement, Article 6.8 of the Qinnan Farmout Agreement,
Article 6.5 of the Shouyang Amended Farmout Agreement and Article 6.7 of the Shouyang Farmout
Agreement shall continue to be $1 million until June 30, 2005. In the event the Purchaser has
completed the drilling of one horizontal well under Phase two by June 30, 2005, the amount required
to be held in escrow shall continue to be $1 million until December 31, 2005. In the event that the
Purchaser has not completed the drilling of one horizontal well under Phase two by June 30, 2005,
then the Purchaser shall increase the Escrow Deposit to $2.6 million to cover the costs under
Article 6.6 of the Qinnan Amended Farmout Agreement, Article 6.8 of the Qinnan Farmout Agreement,
Article 6.5 of the Shouyang Amended Farmout Agreement and Article 6.7 of the Shouyang Farmout
Agreement. Notwithstanding the requirement to increase the Escrow Fund to $2.6 million at June 30,
2005 and subject to certain events described in Article 6.4(a) of the Qinnan Amended Farmout
Agreement and Article 6.4(a) of the Shouyang Amended Farmout Agreement, the Purchaser shall have
the right, each time subject to the prior written consent of the Seller, to drawdown amounts
required to fund operations in phase two after June 30, 2005. Each drawdown shall not exceed
$250,000.

In the event the Purchaser is in default, as described in Article 8.1 of the Farmout Agreements, in
connection with its obligations under Article 6.6 of the Qinnan Amended Farmout Agreement and
Article 6.8 of the Qinnan Farmout Agreement and/or Article 6.5 of the Shouyang Amended Farmout
Agreement and Article 6.7 of the Shouyang Farmout Agreement, the Seller shall have the right to
give written instructions to the Escrow Agent, directing the Escrow Agent to release to the Seller
the amount of the Escrow Funds required to fully satisfy the remainder of such obligations under
the Amended Farmout Agreements. Such written instructions shall (1) provide the details of the
amount and the reasons for the default under Article 8.1 of the Amended Farmout Agreements and (2)
be given by the Seller by one of the Seller’s authorized representatives as set forth on Schedule
2. Such released Escrow Funds shall be directed and utilized by the Seller to satisfy the
Purchaser’s obligations in accordance with Article 6.6 of the Qinnan Amended Farmout Agreement and
Article 6.8 of the Qinnan Farmout Agreement and Articles 6.5 of the Shouyang Amended Farmout
Agreement and Article 6.7 of the Shouyang Farmout Agreement, and the balance of the Escrow Funds,
if any, shall be refunded to the Purchaser. If the Purchaser fully satisfies its obligations under
the Amended Farmout Agreements, the Escrow Agent shall release the Escrow Funds to the Purchaser
pursuant to the joint written instructions of the Purchaser, by one of Purchaser’s authorized
representatives as set forth on Schedule 2, and of the Seller, by one of the Seller’s authorized
representatives as set forth on Schedule 2. Upon delivery of all of the Escrow Funds by the Escrow
Agent, this Amended Agreement shall terminate, subject to the provisions of Section 8.

5. Escrow Agent. The Escrow Agent undertakes to perform only such duties as are expressly set
forth herein and no duties shall be implied. The Escrow Agent shall have no liability under and no
duty to inquire as to the provisions of any agreement other than this Amended Agreement. The
Escrow Agent may rely upon and shall not be liable for acting or refraining from acting upon any
written notice, instruction or request furnished to it hereunder and believed by it to be genuine
and to have been signed or presented by the proper party or parties. The Escrow Agent shall be
under no duty to inquire into or investigate the validity, accuracy or content of any such
document. The Escrow Agent shall have no duty to solicit any payments which may be due it or the
Escrow Fund. The Escrow Agent shall not be liable for any action taken or omitted by it in good
faith except to the extent that a court of competent jurisdiction determines that the Escrow
Agent’s gross negligence or willful misconduct was the primary cause of any loss to the Purchaser
or Seller. The Escrow Agent may execute any of its powers and perform any of its duties hereunder
directly or through agents or attorneys (and shall be liable only for the careful selection of any
such agent or attorney) and may consult with counsel, accountants and other skilled persons to be
selected and retained by it. The Escrow Agent shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the advice or opinion of any such counsel,
accountants or other skilled persons. In the event that the Escrow Agent shall be uncertain as to
its duties or rights hereunder or shall receive instructions, claims or demands from any party
hereto which, in its opinion, conflict with any of the provisions of this Amended Agreement, it
shall be entitled to refrain from taking any action and its sole obligation shall be to keep safely
all property held in escrow until it shall be directed otherwise in writing by all of the other
parties hereto or by a final order or judgment of a court of competent jurisdiction. Anything in
this Amended Agreement to the contrary notwithstanding, in no event shall the Escrow Agent be
liable for special, indirect or consequential loss or damage of any kind whatsoever (including but
not limited to lost profits), even if the Escrow Agent has been advised of the likelihood of such
loss or damage and regardless of the form of action.

6. Succession. The Escrow Agent may resign and be discharged from its duties or obligations
hereunder by giving 10 days advance notice in writing of such resignation to the other parties
hereto specifying a date when such resignation shall take effect. The Escrow Agent shall have the
right to withhold an amount equal to any amount due and owing to the Escrow Agent, plus any actual
costs and expenses incurred by the Escrow Agent in connection with the termination of the Amended
Agreement. Any corporation or association into which the Escrow Agent may be merged or converted
or with which it may be consolidated, or any corporation or association to which all or
substantially all the escrow business of the Escrow Agent’s corporate trust line of business may be
transferred, shall be the Escrow Agent under this Amended Agreement without further act.

7. Fees. The Purchaser paid the Escrow Agent upon execution of the Agreement and agrees to (i) pay
from time to time after the execution of this Amended Agreement reasonable compensation for the
services to be rendered hereunder, which unless otherwise agreed in writing shall be as described
in Schedule 1 attached hereto, and (ii) pay or reimburse the Escrow Agent upon request for all
expenses, disbursements and advances, including reasonable attorney’s fees and expenses, incurred
or made by it in connection with the preparation, execution, performance, delivery, modification
and termination of this Amended Agreement.

8. Indemnity. The Purchaser and the Seller shall jointly and severally indemnify, defend and save
harmless the Escrow Agent and its directors, officers, agents and employees (the “indemnitees”)
from all loss, liability or expense (including the fees and expenses of in house or outside
counsel) arising out of or in connection with (i) the Escrow Agent’s execution and performance of
this Amended Agreement, except in the case of any indemnitee to the extent that such loss,
liability or expense is due to the gross negligence or willful misconduct of such indemnitee, or
(ii) its following any instructions or other directions from the Purchaser or the Seller, except to
the extent that its following any such instruction or direction is expressly forbidden by the terms
hereof. The parties hereto acknowledge that the foregoing indemnities shall survive the resignation
or removal of the Escrow Agent or the termination of this Amended Agreement. The parties hereby
grant the Escrow Agent a lien on, right of set-off against and security interest in the Escrow Fund
for the payment of any claim for indemnification, compensation, expenses and amounts due hereunder.

9. TINs. The Purchaser and the Seller each represent that its correct Taxpayer Identification
Number (“TIN”) assigned by the Internal Revenue Service (“IRS”) or any other taxing authority is
set forth on the signature page hereof. In addition, all interest or other income earned under the
Amended Agreement shall be allocated and/or paid and reported by the Purchaser to the Internal
Revenue Service or any other taxing authority. Notwithstanding such written directions, Escrow
Agent shall report and, as required withhold any taxes as it determines may be required by any law
or regulation in effect at the time of the distribution. In the absence of timely direction, all
proceeds of the Escrow Fund shall be retained in the Escrow Fund and reinvested from time to time
by the Escrow Agent as provided in Section 3. In the event that any earnings remain undistributed
at the end of any calendar year, Escrow Agent shall report to the Internal Revenue Service or such
other authority such earnings as it deems appropriate or as required by any applicable law or
regulation or, to the extent consistent therewith, as directed in writing by the Purchaser. In
addition, Escrow Agent shall withhold any taxes it deems appropriate and shall remit such taxes to
the appropriate authorities.

10. Notices. All communications hereunder shall be in writing and shall be deemed to be duly given
and received:

(i) upon delivery if delivered personally or upon confirmed transmittal if by facsimile;

(ii) on the next Business Day (as hereinafter defined) if sent by overnight courier; or

(iii) four (4) Business Days after mailing if mailed by prepaid registered mail, return receipt
requested, to the appropriate notice address set forth on Schedule 1 or at such other address as
any party hereto may have furnished to the other parties in writing by registered mail, return
receipt requested.

Notwithstanding the above, in the case of communications delivered to the Escrow Agent pursuant to
(ii) and (iii) of this Section 10, such communications shall be deemed to have been given on the
date received by the Escrow Agent. In the event that the Escrow Agent, in its sole discretion,
shall determine that an emergency exists, the Escrow Agent may use such other means of
communication as the Escrow Agent deems appropriate. “Business Day” shall mean any day other than
a Saturday, Sunday or any other day on which the Escrow Agent located at the notice address set
forth on Schedule 1 is authorized or required by law or executive order to remain closed.

11. Security Procedures. In the event funds transfer instructions are given (other than in writing
at the time of execution of this Amended Agreement, as indicated in Schedule 1 attached hereto),
whether in writing, by telecopier or otherwise, the Escrow Agent is authorized to seek confirmation
of such instructions by telephone call-back to the person or persons designated on schedule 2
hereto (“Schedule 2”), and the Escrow Agent may rely upon the confirmation of anyone purporting to
be the person or persons so designated. The persons and telephone numbers for call-backs may be
changed only in a writing actually received and acknowledged by the Escrow Agent. If the Escrow
Agent is unable to contact any of the authorized representatives identified in Schedule 2, the
Escrow Agent is hereby authorized to seek confirmation of such instructions by telephone call-back
to any one or more of your executive officers, (“Executive Officers”), which shall include the
titles of President and CFO, as the Escrow Agent may select. Such “Executive Officer” shall deliver
to the Escrow Agent a fully executed Incumbency Certificate, and the Escrow Agent may rely upon the
confirmation of anyone purporting to be any such officer. The Escrow Agent and the beneficiary’s
bank in any funds transfer may rely solely upon any account numbers or similar identifying numbers
provided by the Purchaser or the Seller to identify (i) the beneficiary, (ii) the beneficiary’s
bank, or (iii) an intermediary bank. The Escrow Agent may apply any of the escrowed funds for any
payment order it executes using any such identifying number, even when its use may result in a
person other than the beneficiary being paid, or the transfer of funds to a bank other than the
beneficiary’s bank or an intermediary bank designated. The parties to this Amended Agreement
acknowledge that these security procedures are commercially reasonable.

12. Miscellaneous. The provisions of this Amended Agreement may be waived, altered, amended or
supplemented, in whole or in part, only by a writing signed by all of the parties hereto. Neither
this Amended Agreement nor any right or interest hereunder may be assigned in whole or in part by
any party, except as provided in Section 6, without the prior consent of the other parties. This
Amended Agreement shall be governed by and construed under the laws of the State of New York. Each
party hereto irrevocably waives any objection on the grounds of venue, forum non-conveniens or any
similar grounds and irrevocably consents to service of process by mail or in any other manner
permitted by applicable law and consents to the jurisdiction of the courts located in the State of
New York. The parties further hereby waive any right to a trial by jury with respect to any
lawsuit or judicial proceeding arising or relating to this Amended Agreement. No party to this
Amended Agreement is liable to any other party for losses due to, or if it is unable to perform its
obligations under the terms of this Amended Agreement because of, acts of God, fire, floods,
strikes, equipment or transmission failure, or other causes reasonably beyond its control. This
Amended 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. This Amended
Agreement is intended to supersede and replace the Agreement.

1

IN WITNESS WHEREOF, the parties hereto have executed this Amended Agreement as of the date set
forth in Schedule 1.

	 	 	 	 	 	 	 
	Tax Certification: Taxpayer ID#:

	 	

	 	

	 	

	
 
	 	 
	 	 
	 	 
	Customer is a (check one):

	 	

	 	

	 	

	_X     Corporation

	 	     Municipality
	 	 	 	     Partnership      Non-profit or Charitable Org
	 

	 	

	 	

	 	

	     Individual

	 	     REMIC
	 	     Trust
	 	     Other      

Under the penalties of perjury, the undersigned certifies that:

	 	(1)	 	the entity is organized under the laws of the United States or           (specify
country)

	 	(2)	 	the number shown above is its correct Taxpayer Identification Number (or it is waiting for a
number to be issued to it); and

	 	(3)	 	it is not subject to backup withholding because: (a) it is exempt from backup withholding or
(b) it has not been notified by the Internal Revenue Service (IRS) that it is subject to
backup withholding as a result of failure to report all interest or dividends, or (c) the IRS
has notified it that it is no longer subject to backup withholding.

(If the entity is subject to backup withholding, cross out the words after the (3) above.)

Investors who do not supply a tax identification number will be subject to backup withholding in
accordance with IRS regulations.

Note: The IRS does not require your consent to any provision of this document other than the
certifications required to avoid backup withholding.

PURCHASER – Far East Energy Corporation

Signature: _/s/ Bruce N. Huff     

Printed Name: Bruce N. Huff

Title: Chief Financial Officer

	 	 	 	 	 	 	 
	Tax Certification: Taxpayer ID#:

	 	

	 	

	 	

	
 
	 	 
	 	 
	 	 
	Customer is a (check one):

	 	

	 	

	 	

	_X     Corporation

	 	     Municipality
	 	 	 	     Partnership      Non-profit or Charitable Org
	 

	 	

	 	

	 	

	     Individual

	 	     REMIC
	 	     Trust
	 	     Other      

Under the penalties of perjury, the undersigned certifies that:

(1) the entity is organized under the laws of the United States or
     Liberia_     (specify country)

	 	(2)	 	the number shown above is its correct Taxpayer Identification Number (or it is waiting for a
number to be issued to it); and

	 	(3)	 	it is not subject to backup withholding because: (a) it is exempt from backup withholding or
(b) it has not been notified by the Internal Revenue Service (IRS) that it is subject to
backup withholding as a result of failure to report all interest or dividends, or (c) the IRS
has notified it that it is no longer subject to backup withholding.

(If the entity is subject to backup withholding, cross out the words after the (3) above.)

Investors who do not supply a tax identification number will be subject to backup withholding in
accordance with IRS regulations.

Note: The IRS does not require your consent to any provision of this document other than the
certifications required to avoid backup withholding.

SELLER – Phillips China Inc.

Signature:     /s/ Steve Park     

Printed Name: Steve Park

Title: _Vice President      

J.P. MORGAN TRUST COMPANY, N.A.

as Escrow Agent

By:_/s/ Josie Hixon     

	 	 	 	Authorized Signer

2Exhibit 10.16

MODFICATION TO CREDIT AGREEMENT
(SBA Loan No. EXP 493-154-4000)

This AGREEMENT, made as of January 1, 2003, by and among COMMUNITY CAPITAL BANK,
a  New  York  Banking  Corporation  having  an  office at 111 Livingston Street,
Brooklyn,  New  York  11201 (herein called the "Bank"), M.T. Marketing INT. Corp
d/b/a  "MT  Ultimate  Healthcare Referral Services", a Nevada Corporation Having
its  chief  executive  office  at  43  Pulaski Street , Brooklyn, New York 11206
(herein  called  the  "Borrower"), and MCDONALD S. TUDEME and MARGUERITA TUDEME,
each an individual residing at 43 Pulaski Street, Brooklyn, New York 11206 and a
director,  an  officer  and  a  shareholder of the Borrower (herein individually
called  a  "Guarantor"  and  collectively  called  the  "Guarantors").

WHEREAS:

     I.   The  Borrower,  the Guarantors and the Bank have entered into a Credit
          Agreement,  dated  as  of December 12, 2001 (herein called the "Credit
          Agreement"),  pursuant to which the Bank established an SBA-guaranteed
          Revolving  Line  of  credit  for use by the Borrower and conditionally
          committed,  for  a period ending December 1, 2002 to make Credit Loans
          to the Borrower in a principal amount not to exceed, in the aggregate,
          at any one time outstanding, the sum of One hundred Fifty Thousand and
          no/100  ($150,000.00)  Dollars.

     II.  The  Borrower  has  required  that  the  Bank  (a)  extend  its Credit
          Commitment  and the Termination Date (as such terms are defined in the
          Credit Agreement) to December 1, 2004 and (b) extend the Maturity Date
          (as  such term is defined in the Credit Agreement) to January 1, 2005.

     III. The  Bank  is  willing to grant to the Borrower such extensions of the
          Termination  Date  and the Maturity Date upon the terms and conditions
          hereinafter  set  forth.

          NOW,  THEREFORE, in consideration of the premises and mutual covenants
          herein  contained,  the  parties  hereto  agree  as  follows:

          1.   Defined  Terms.  Terms  for  which  meanings  are provided in the
               --------------
               Credit  Agreement,  unless  otherwise  defined  herein,  are used
               herein  with  such  meanings.
          2.   Modification  of Credit Agreement. The Credit Agreement is hereby
               ---------------------------------
               modified  as  below  provided  and,  except as so modified, shall
               remain  in  full  force  and  effect.  In  the  event  of  any
               inconsistency  between the terms, covenants and provisions of the
               Credit  Agreement  and  of  this Modification to Credit Agreement
               (herein  called  the  "Modification  Agreement"),  the  term,
               covenants,  conditions  and  provisions  of  this  Modification
               Agreement  shall  be  controlling.

               a.   Paragraph  1  of  the credit Agreement is hereby deleted and
                    the  following  provisions  substituted  therefore:

<PAGE>

               i.   Credit  Commitment.
                    -------------------
               Subject  to  the terms and conditions of this Agreement, the Bank
               agrees  (herein  called  its  "Credit Commitment") that it hereof
               (herein  called the "Closing Date") and continuing to the earlier
                                                                         -------
               of  December  1,  2004  or the date on which there shall occur An
               Event  of  Default  under  this  Agreement  (herein  called  the
               "Termination Date"), make loans (herein called "Credit loans") to
               the  Borrower, from time to time, when requested by the Borrower;
               provided,  however,  that  the Bank shall not be required to make
               --------   -------
               any  Credit  Loan  if, after giving effect thereto, the aggregate
               outstanding principal amount of all Credit Loans would exceed the
               Bank's  Credit  Commitment.  Subject  to  the  terms  hereof, the
               Borrower  may  from  time  to  time  borrow,  repay and re-borrow
               amounts  pursuant  to  the  "Credit  Commitment."

               b.   Paragraph  4(a)  and  (b)  of the Credit Agreement is hereby
                    deleted  and the following provisions substituted therefore:

     4.   Repayment;  Interest;  Default  Rate;  Late  Charges;  Clean-Up.
          ---------------------------------------------------------------

          a.   The  Borrower  shall  pay interest on the principal amount of the
               Note  from  time  to time advanced and outstanding, computed from
               the  date  of each Credit loan, at the floating rate equal to one
               (1.0%)  percent  per  annum  above  the Prime rate (as defined in
               subparagraph  (C)  below), as follows: interest only shall be due
               and  payable on February 1, 2002 and continuing on the 1st day of
               each calendar month thereafter to and including termination Date.
               Said  rate  shall initially be determined AND BE EFFECTIVE ON THE
               Closing  Date,  and  then  adjusted  upon any change in the Prime
               Rate,  each  such  change being effective on the first day of the
               calendar  month  following  the  month in which the change in the
               Prime  Rate  occurred,  but  in no event in excess of the maximum
               interest  rate  permitted  to  be  charged  the  Borrower  under
               applicable  law.
          b.   The  principal  sum  of  One  Hundred  Fifty  Thousand and No/100
               ($150,000.00)  Dollars  or so much thereof as may be advanced and
               outstanding  pursuant  to  the  terms  hereof shall be payable on
               January  1,  2005  (herein  called  the  "Maturity  Date")."

<PAGE>

     3.   Representations  and  Warranties.  The  Borrower hereby represents and
          --------------------------------
          warrants  that:

          a.   the  representations  and warranties set forth in Paragraph 10 of
               the  Credit  Agreement  were  true  and correct as of the date on
               which made, on the closing Date, on the date of each Credit loan,
               and  on  the  data  of  the  execution  by  the  Borrower and the
               Guarantors of this Modification Agreement and no event of Default
               has  occurred  and  is  continuing;
          b.   no  litigation,  arbitration  of  governmental  proceeding  or
               investigation  against the Borrower of any Guarantor or Affecting
               the  business or operations of the Borrower is pending or, to the
               knowledge  of the Borrower or any Guarantor, threatened which was
               not  disclosed to the bank pursuant to the Credit Agreement prior
               to  the  most  recent  Credit  loans,  and  no development not so
               disclosed  shall  have occurred in any litigation, arbitration or
               governmental  investigation  or proceeding so disclosed, which in
               either  event,  if adversely determined, might, have a materially
               adversely  effect  upon  the  financial  condition, operations or
               prospects  of  the  Borrower  or  any Guarantors to perform their
               respective  obligations  under  the  Credit  Agreement  or  any
               instrument  executed  pursuant  thereto  by  the  borrower or any
               Guarantor;
          c.   the most recent financial statements furnished to the bank fairly
               present  the  financial condition of the Borrower as at such date
               and  the results of the operations of the Borrower for the period
               then  ended,  and  since  said  date,  there has been no material
               adverse  change  in  such  conditions  or  operations;  and
          d.   the amount of principal indebt ness advance and outstanding under
               the  Credit  Agreement  on  the  date  of  the  execution of this
               Modification  Agreement  by  the  Borrower  and the Guarantors is
               $144,528.29  and  neither  the Borrower nor any Guarantor has any
               counterclaims  defenses  or  offsets  to  said  indebtedness;
     4.   Conditions  Precedent. The obligations of the Bank here under shall be
          --------------------
          subject  to  the  performance  by  the  borrower of all its agreements
          heretofore  to  be  performed and to the following further conditions:

          a.   The  bank  shall  have  received an original of this Modification
               Agreement,  duly  executed by the Borrower and the Guarantors not
               later  than  June  30,  2003

<PAGE>

          b.   The  Borrower  shall have executed and delivered to the bank its
               Amended  and Restated Note on SBA form 147, made as of January 1,
               2003,  in  the  maximum  principal  amount  of  $150,000.00;
          c.   Lender  must  pay a guarantee fee in the amount of $937.50 to the
               united  States  Small  Business Administration in connection with
               this  modification  Agreement  and Borrower shall have reimbursed
               lender  said  guarantee  fee;  and
          d.   The  legal fee of the Bank's counsel, Laurence K. Brown, Esq., in
               connection  with  the  preparation of this Modification Agreement
               shall  have  been  paid  by  the  Borrower.

     IN WITNESS WHEREOF, the parties hereto have executed this Modification to
Credit Agreement.

          Borrower:      M.T. Marketing INT. Corp.

                         By:  /s/ Macdonald S. Tudeme
                         Macdonald S. Tudeme
                         President

                         November 7, 2003

<PAGE>

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