Reinstatement

To:Ma Jun

Marketing Manager

From: Eric H. Williams

Purchasing Manager

Date: January 5, 2002

Re:: Dead-Burned Magnesite 9110

Dear Mr. Ma Jun,

Please note we have not received any confiration for shipment out of Bayuquan. We now have new order for August shipment i.e. 35,000 MT. Please confirm according to the terms and conditions in my email on December 29,2001.

It’s our practice to have the payent D/P at 90-day sight. That’s a basic term we’re doing the business. I think you can draw a lesson from last lot. Business is business. Everyone should be tough and tough enough to be strong. If you can’t stand the heat in the kitchen, just get out of it. If our terms could not be fulfilled, we have to zctivate the standby. We shall never hang ourselves on one tree. This is not the secret in the refractory world. Let me repeat D/P AT 90-DAY SIGHT. This is fundamental.

For all the tears you had to cry about, please advise whether we should dispatch a big parcel of napkins by DHL. Speaking seriously Mr. Ma, if you agree, please email me a contract, of which you can refer to S/C No. NMM06280001 with the special clauses. The way is same as I instructed you. I believe this time, we have enough time and it will not be a rush.

Thank you and best regards.

Eric H. Williams Purchasing Manager