Document:

EXHIBIT 10.20.4

                                  WOODWARD LLC
                                Corporate Center
                                  West Bay Road
                          Grand Cayman, Cayman Islands

                                                       December 31, 1999

EUROTECH, Ltd.
1216 16th Street, N.W.
Washington, D.C. 20036

                       Re: EUROTECH, Ltd. (the "Company")

Gentlemen:

            Reference is made to the Common Stock Purchase Agreement (the
"Purchase Agreement"), of even date hereof, between the Company and the
undersigned (the "Purchaser").

            The Purchasers additionally commit, subject to and upon the terms
and conditions hereof, to purchase from the Company, and the Company may sell to
the Purchaser shares of Common Stock (the "Additional Shares") for an aggregate
purchase price of up to $22,000,000 at a price equal to 90% of the five (5)
lowest closing bid price as reported by Bloomberg LP of the Common Stock (not
necessarily consecutive) for the fifteen (15) trading days prior to each
Additional Closing.

            The commitment of the Purchaser set forth in this letter is subject
to the terms, conditions and qualifications set forth below:

            1. Additional Documentation. In order to effectuate a purchase and
sale of the Additional Shares, prior to their issuance, the Company and the
Purchasers shall enter into the following agreements: (a) a securities purchase
agreement (the "Additional Purchase Agreement") setting forth the terms and
conditions of the purchase and sale, and (b) a registration rights agreement
substantially identical to the Registration Rights Agreement (the "Additional
Registration Rights Agreement", and together with the Additional Purchase
Agreement, collectively the "Additional Transaction Documents"). The Purchaser
shall prepare the Additional Transaction Documents.

            2. The Additional Closing. (i) The Company shall have the right to
deliver one or more written notices to the Purchaser (the "Additional Financing
Notice") requiring such party to buy the Additional Shares for an aggregate
purchase price of $22,000,000 (the "Additional Purchase Price"), but not less
than $800,000 or to exceed $4,000,000 per Additional Financing Notice. An
Additional Financing Notice may be delivered no earlier than twenty (20) Trading
Days following the Effective Date or thirty (30) Trading Days following the
prior Additional Financing Notice. The closing of the purchase and sale of the
Additional Securities (the "Additional Closing") shall take place at the offices
of Krieger & Prager, LLP, Suite 1440, 39 Broadway, New York, New York 10006, on
the fifteenth (15) Business Day after the Additional Financing Notice is
received by the Purchasers or the Company, as the case may be, or on such other
date as otherwise agreed to by the parties hereto; provided, however, that in no
case shall the Additional Closing take place unless and until all of the
conditions listed in Section 3 of this letter and the Additional Purchase
Agreements shall have been satisfied by the Company or waived by the Purchasers.
The date of the Additional Closing is hereinafter referred to as the "Additional
Closing Date." Notwithstanding anything to the contrary contained in this
letter. Purchaser may designate an Affiliate thereof to acquire all or any
portion of the Additional Shares.

                  (ii) At the Additional Closing, the parties shall deliver or
shall cause to be delivered the following: (a) the Company shall deliver to (x)
Purchaser or its designated Affiliate, (1) the number of Additional Shares
registered in the name of Purchaser or its
<PAGE>

valid and binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such
facsimile signature page were an original thereof.

            Please indicate your agreement with the foregoing by executing a
countersigned copy of this letter and returning the same to our attention,
whereupon effective immediately thereafter this letter shall become a legally
valid and binding agreement between the Purchaser and the Company.

            We look forward to our continuing relationship.

                                                Sincerely,

                                                WOODWARD LLC

                                                By: /s/
                                                    ----------------------------
                                                Name:
                                                Title:

Agreed and accepted
December 31, 1999

EUROTECH, LTD.

By: /s/ Don V. Hahnfeldt
    --------------------------
    Name: Don V. Hahnfeldt
    Title: President & CEO

                                       2Exhibit 10.20.5

                                                                        ANNEX II

                            JOINT ESCROW INSTRUCTIONS

Dated as of the date of the
Securities Purchase Agreement to
Which These Joint Escrow
Instructions Are Attached

Krieger & Prager, Esqs.
319 Fifth Avenue
New York, New York 10016

Attention:  Samuel M. Krieger, Esq.

Dear Mr. Krieger:

      As escrow agent for both EUROTECH LTD., a District of Columbia corporation
(the "Company"), and the Buyer (the "Buyer") of Common Stock (the "Common
Stock") of the Company, who is named in the Common Stock Purchase Agreement
between the Company and the Buyer to which a copy of these Joint Escrow
Instructions is attached as Annex II (the "Agreement"), you (hereafter, the
"Escrow Agent") are hereby authorized and directed to hold the documents and
funds (together with any interest thereon, the "Escrow Funds") delivered to the
Escrow Agent pursuant to the terms of the Agreement in accordance with the
following instructions:

      1. The Escrow Agent shall, as promptly as feasible, notify the Company of
receipt of the purchase price for the Common Stock and from, or on behalf of
the, Buyer (the "Purchase Price"), and notify the Buyer (or such agent as the
Buyer may designate in writing) of receipt of the certificates representing the
Common Stock (the "Certificates"). As promptly as feasible upon receipt of
notice (whether oral or in written form) from the Company and the Buyer that the
respective conditions precedent to the purchase and sale have been satisfied
(which notice shall not be unreasonably withheld), the Escrow Agent shall, after
reduction by the amounts referred to in the next succeeding sentence of this
paragraph, release the Escrow Funds to or upon the order of the Company, and
shall release the Certificates to the Buyer. After receipt of such notice, an
amount equal to (i) $150,000 of the Purchase Price as the aggregate cash fees
due to Spinneret Financial Systems, Inc. (the "Placement Agent") shall be
released to or upon the order of the Escrow Agent and (i) $18,000 of the
Purchase Price in legal and escrow fees for such tranche to the Escrow Agent
shall be released to or upon the order of the Escrow Agent. If the Certificates
are not deposited with the Escrow Agent within ten (10) days after receipt by
the Company of notice of receipt by the Escrow Agent of the Purchase Price funds
from the Buyer, the Escrow Agent shall notify the Buyer and the Buyer shall be
entitled to cancel the purchase and demand repayment of the funds. If such funds
are not deposited with the Escrow Agent within ten (10) days after receipt by
the Buyer of notice of receipt by the Escrow Agent of the Certificates from the
Company, the Escrow Agent shall notify the Company and the Company shall be
entitled to cancel the purchase and demand return of such Certificates. If the
Company or the Buyer notifies the Escrow Agent that on the Closing Date (as
defined in the Agreement) the conditions precedent to the obligations of the
Company or the Buyer, as the case may be, under the Agreement were not satisfied
or waived, then the Escrow Agent shall return the Escrow Funds to the Buyer and
shall return the Certificates to the Company. Prior to return of the Escrow
Funds to the Buyer, the Buyer shall furnish such tax reporting or other
information as shall be appropriate for the Escrow Agent to comply with
applicable United States laws. The Escrow Agent shall deposit all funds received
hereunder in the Escrow Agent's attorney escrow account at The Bank of New York.

      2. The Escrow Agent's duties hereunder may be altered, amended, modified
or revoked only by a writing signed by the Company, the Buyer and the Escrow
Agent.

      3. The Escrow Agent shall be obligated only for the performance of such
duties as are specifically set
<PAGE>

forth herein and may rely and shall be protected in relying or refraining from
acting on any instrument reasonably believed by the Escrow Agent to be genuine
and to have been signed or presented by the proper party or parties. The Escrow
Agent shall not be personally liable for any act the Escrow Agent may do or omit
to do hereunder as the Escrow Agent while acting in good faith, and any act done
or omitted by the Escrow Agent pursuant to the advice of the Escrow Agent's
attorneys-at-law shall be conclusive evidence of such good faith.

      4. The Escrow Agent is hereby expressly authorized to disregard any and
all warnings given by any of the parties hereto or by any other person or
corporation, excepting only orders or process of courts of law and is hereby
expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case the Escrow Agent obeys or complies with any such order, judgment
or decree, the Escrow Agent shall not be liable to any of the parties hereto or
to any other person, firm or corporation by reason of such decree being
subsequently reversed, modified, annulled, set aside, vacated or found to have
been entered without jurisdiction.

      5. The Escrow Agent shall not be liable in any respect on account of the
identity, authorities or rights of the parties executing or delivering or
purporting to execute or deliver the Agreement or any documents or papers
deposited or called for hereunder.

      6. The Escrow Agent shall be entitled to employ such legal counsel and
other experts as the Escrow Agent may deem necessary properly to advise the
Escrow Agent in connection with the Escrow Agent's duties hereunder, may rely
upon the advice of such counsel, and may pay such counsel reasonable
compensation therefor. The Escrow Agent has acted as legal counsel for the
Buyer, and may continue to act as legal counsel for the Buyer, from time to
time, notwithstanding its duties as the Escrow Agent hereunder. The Company
consents to the Escrow Agent acting in such capacity as legal counsel for the
Buyer and waives any claim that such representation represents a conflict of
interest on the part of the Escrow Agent. The Company understands that the Buyer
and the Escrow Agent are relying explicitly on the foregoing provision in
entering into these Joint Escrow Instructions.

      7. The Escrow Agent's responsibilities as escrow agent hereunder shall
terminate if the Escrow Agent shall resign by written notice to the Company and
the Buyer. In the event of any such resignation, the Buyer and the Company shall
appoint a successor Escrow Agent.

      8. If the Escrow Agent reasonably requires other or further instruments in
connection with these Joint Escrow Instructions or obligations in respect
hereto, the necessary parties hereto shall join in furnishing such instruments.

      9. It is understood and agreed that should any dispute arise with respect
to the delivery and/or ownership or right of possession of the documents or the
Escrow Funds held by the Escrow Agent hereunder, the Escrow Agent is authorized
and directed in the Escrow Agent's sole discretion (1) to retain in the Escrow
Agent's possession without liability to anyone all or any part of said documents
or the Escrow Funds until such disputes shall have been settled either by mutual
written agreement of the parties concerned or by a final order, decree or
judgment of a court of competent jurisdiction after the time for appeal has
expired and no appeal has been perfected, but the Escrow Agent shall be under no
duty whatsoever to institute or defend any such proceedings or (2) to deliver
the Escrow Funds and any other property and documents held by the Escrow Agent
hereunder to a state or federal court having competent subject matter
jurisdiction and located in the State and City of New York in accordance with
the applicable procedure therefor.

      10. The Company and the Buyer agree jointly and severally to indemnify and
hold harmless the Escrow Agent from any and all claims, liabilities, costs or
expenses in any way arising from or relating to the duties or performance of the
Escrow Agent hereunder other than any such claim, liability, cost or expense to
the extent the same shall (a) have been tax obligations in connection with
Escrow Agent's fee hereunder, or (b) have been determined by final, unappealable
judgment of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the Escrow Agent, or (c) be a liability, or
arise from liability, to either the Company or the Buyer.

      11. Any notice required or permitted hereunder shall be given in manner
provided in the Section headed "NOTICES" in the Agreement, the terms of which
are incorporated herein by reference.

                                       2
<PAGE>

      12. By signing these Joint Escrow Instructions, the Escrow Agent becomes a
party hereto only for the purpose of these Joint Escrow Instructions; the Escrow
Agent does not become a party to the Agreement. The Company and the Buyer have
become parties hereto by their execution and delivery of the Agreement, as
provided therein.

      13. This instrument shall be binding upon and inure to the benefit of the
parties hereto, and their respective successors and permitted assigns and shall
be governed by the laws of the State of New York without giving effect to
principles governing the conflicts of laws. A facsimile transmission of these
instructions signed by the Escrow Agent shall be legal and binding on all
parties hereto.

      14. Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings provided in the Agreement.

      15. The rights and obligations of any party hereto are not assignable
without the written consent of the other parties hereto. These Joint Escrow
Instructions constitute the entire agreement amongst the parties with respect to
the subject matter hereof.

ACCEPTED BY ESCROW AGENT:
KRIEGER & PRAGER

By: _______________________________________
Date: _____________________________________

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