Letter Of Intent (Page 2 of 6) in pdf

Letter Of Intent Page 2

1.3 Reorganization and Restructure of the Company’s current shareholding structure

Upon the completion of domestic shareholding restructure （ refer to

“3.Obligations of the Company”）， GGG will incorporate an offshore Special

Purpose Vehicle (“SPV”) with the proposed name being China Precision

Technology Ltd (“CPT”) and proceed with shareholding swap with HSJ Group to

enable the SPV to be the 100% holding company of HSJ Group as illustrated in

the “Organization Chart (1.3)”. Thereafter, HSJ Group will become a Wholly

Owned Foreign Enterprise (WOFE) held by the aforementioned SPV. In return,

GGG will derive 5% of SPV’s shareholding upon completion of the international

restructuring process with Ms Jia’s and/or her nominated shareholding

representative (collectively referred to as “Ms Jia” hereinafter) holding the rest

95%.

Organization Chart (1.3)

Ms Jia

GGG

95%

SPV

100%

Qingdao Huashiji Science and

Technology Development Group

100%

Qingdao Huashiji

Qingdao Huashiji Investment

Precision Mold Co., Ltd

Electronic Co., Ltd

Management Co., Ltd.

1.4 Legal and Financial Due Diligence by Law Firm and Accountancy Firm

GGG will assist the Company to appoint well accepted law firm and accountancy

firm to proceed with relevant and necessary 3

party legal and financial due

diligence which include the audited financial report covering full years of 2007

and 2008 and legal due diligence on China based HSJ Group. The result of such

due diligence shall be satisfied by GGG in order for future process to proceed.

Letter Of Intent Page 2