Suspending an S/C

To: Ma Jun

Marketing Manager

From: Eric H. Williams

Purchasing Manager

Re: Suspension of Dead-Burned Magnesite 9110

Date: January 1,2002

Dear Mr. Ma Jun,

Following our discussions by telephone this porning, this is to advise you that we have placed this 35,000 MT magnesite business with other corporation.

Thank you for your efforts and information, but we did not have sufficient confidence to change from a supplier we have known for many years.

In the meantie we would like to place some firm magnesite business with you as start of our business relationship. Please again go over my terms and conditions in the latest email. I wish to have the payment D/P at 90-day sight. Let me repeat D/P AT 90-DAYSIGHT. This is important to you and me.

Best regards,

Eric H. Willias Purchasing Manager