COMMITMENT LETTER
Wuxi Seamless Oil Pipes Company Limited:
On April 22, 2005, your company and Bank of Communications Wuxi Branch Chaoyang
Sub-branch (hereinafter "BOC") entered into a Guarantee Contract (No.
Boccy-D062(2005)-122). According to this Guarantee Contract, your company
provided joint liability guarantee for China Huayuan Group Jiangsu Company
Limied (hereinafter referred to as "Huayuan Jiangsu") which borrowed RMB 9
million from the BOC, for which the repayment was due on October 20, 2005; the
term of your guarantee is for two years from the end of the debt repayment
period.
We hereby covenant that in case Xxxxxxx Xxxxxxx is unable to repay the
above-mentioned RMB 9 million loan, interests and other fees to the BOC and the
BOC requires your company to perform the guarantee responsibility for the
repayment of such debt, our company will volunteer to undertake such guarantee
responsibility to the BOC. If our company repays such debt to the BOC, our
company will reclaim it from Huayuan Jiangsu, but not your company. Moreover,
even if we fail to reclaim such payments from Xxxxxxx Xxxxxxx, we nevertheless
agree to waive the right of recourse against your company.
Wuxi Longhua Steel Pipes Company Limited
(Seal)
Date: January 11, 2007
