**Lease      Agreement**

**(English      Translation)**

*Note:      This is an English translation of an agreement originally drafted in Chinese,      and accordingly *
*this      translation is not legally effective or binding on the parties. This translation      is being furnished for disclosure purposes. *

**Article      One**

**Article      Two**

| 1. | Party                A agrees to lease the plot of land and the buildings on the plot                to Party                B, which is located at No. 58 Chenling Road, Shangfang Township,                Jiangning                District, Nanjing. |
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| 2. | The                National Land Rights Certificate for this plot is numbered Jiangning                National Rights 2004 Number 0020, and encompasses an area sized 8053.33                square meters, and a floor area of 10,000 square meters (subject                to Party                A's measurements). |
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**Article      Three**

**Article      Four**

| 1. | The                term shall be for 2 years commencing from April 1, 2006 and ending                March                31, 2008. |
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| 2. | Party                B promises to Party A that the buildings shall only used for office                purposes. |
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| 3. | Upon                expiration of the term, Party A has the right to recover possession                of the                building, and Party B agrees to return possession in a timely manner. |
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| 4. | If                the parties wish to extend the term of this lease, Party B should                give                Party A three-months' notice before the expiration, and this lease                contract shall be renewable upon consent by Party A. |
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**Article      Five**

| 1. | Yearly                rent of the land and buildings is RMB 200,000 (Two Hundred Thousand                RMB                Yuan). |
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| 2. | The                rent shall be paid in the following manner: Party B will pay annual                rent                applicable for the year on April 10 of such year, and promises to                properly                maintain the building and use it (walls, floors and windows, etc.)                in a                reasonable manner. |
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**Article      Six**

**Article      Seven**

| 1. | During                the term of lease, Party B promises to ensure the safe use of the                building, and bears the responsibility of repairing the buildings                and all                the facilities if and when they require repair. If the repairing                necessitates cooperation from Party A, Party B will give Party A                seven-days’ advance notice and Party A agrees to actively cooperate. |
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| 2. | Party                A shall use the leased premises in a reasonable manner. If any damage                should occur that is caused by improper usage, Party B shall repair                the                facilities immediately or make a timely and appropriate compensation                to                Party A. Any alterations of the interior structure, decor, or installation                of any equipment or fixtures within the building, shall require approval                in writing from Party A prior to buildout in relation to the designed                scale, construction scope, process and material. Upon expiration                of the                lease term or termination of the lease due to Party B's violation                of any                term of this lease, except as provided by written agreement made                by both                parties, Party A shall have the right to do any the following: |
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|  | (1) | take                possession and ownership of any modifications to the premises, including                décor, improvements, fixtures, etc.; |
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|  | (2) | have                the building restored to its previous condition by Party B; |
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|  | (3) | charge                Party B for the cost of restoring the premises to its original state                prior                to the modifications made by Party B. |
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| 3. | The                fixtures and equipment installed by Party B which can be removed                (such as                air conditioners) shall be removed by Party B. However, any materials                which cannot be removed (such as floors, tiles, partitions) shall                be taken                over by Party A. |
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**Article      Eight**

| 1. | During                the term of lease, Party A has the right to transfer the land and                building                according to the required legal formalities and after the transfer,                this                contract shall continue to be effective as between the new owner                and Party                B. |
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| 2. | Without                Party As consent, Party B is not allowed to sub-lease the premises                to any                third party. |
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| 3. | In                case Party A sells the property, Party A shall give Party B two months                notice in advance. Party B shall have a right of first refusal to                purchase                the land and buildings on the same terms and conditions as it is                proposed                to be sold by Party A. |
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**Article      Nine**

| 1. | The                two parties can modify or terminate the contract through negotiations. |
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| 2. | If                Party A assigns this agreement to another party, Party B has the                right to                dissolve the contract if: |
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|  | (1) | the                new party to this agreement fails to provide the land and buildings                or                those provided are not up to the contracted conditions and seriously                affects normal usage. |
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|  | (2) | the                  new party fails to do its duty in repairing the buildings and this                  seriously affects normal usage. |
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| 3. | During                the lease term, Party A has the right to dissolve the contract and                repossess the leased buildings if any of the following actions are                taken                by Party B: |
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| 4. | For                an extended term, Party B shall give Party A written notice three                months                in advance of the expiration. In case Party A continues to lease                the                buildings, Party B shall have a right of first refusal to obtain                a lease                from Party A under same terms and conditions. |
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| 5. | This                lease automatically terminates upon the expiration date unless extended                according to the terms of this agreement. |
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| 6. | This                lease shall terminate if it cannot be implemented due to a force                majeure                event. |
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**Article      Ten**

| 1. | Party                A shall inspect the premises to ensure that the building is in a                normal                usable state. |
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| 2. | The                two parties collectively shall take part in the examination and                inspection, and shall agree on issues such as decoration, hardware                and                facilities. |
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| 3. | Party                B shall turn over possession of the buildings and facilities to Party                A                upon the expiration of this agreement. |
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| 4. | Upon                the above turn-over of possession, Party B shall maintain the buildings                and facilities in good condition, and shall not leave any articles                in it                or do anything to adversely affect the building's normal usage. Party                A                has the right to dispose of anything left by Party B without the                approval                of Party A. |
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**Article      Eleven**

| 1. | If                this agreement is terminated due to Party As failure to provide the                land                and building stipulated in this agreement, Party A shall be obligated                to                pay Party B 20% of the total amount of this agreement as a penalty.                In                addition, Party A shall compensate Party B for any losses suffered                by                Party B as a result of such failure. |
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| 2. | If                Party A breaches the agreement and repossess to the land and buildings                prior to the termination or expiration of this Agreement, Party A                shall                pay Party B 10% of the total amount of this agreement as a penalty.                If                this payment does not sufficiently compensation Party B for the actual                losses sustained by Party B, Party A shall have the responsibility                of                compensating Party B by any means necessary in order to make Party                B                whole. |
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**Article      Twelve**

| 1. | During                the lease term, Party A has the right to dissolve the agreement and                repossess the leased buildings in the event that Party B takes any                of the                following actions. Party B shall pay 10% of the total amount of this                agreement to Party A as a penalty. If this payment cannot make up                for the                actual losses suffered by Party A, Party B shall have the responsibility                of compensating Party A by any means necessary in order to make Party                A                whole. |
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|  | (1) | Party                B sub-leases or lends the leased buildings without Party A’s written                permission. |
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|  | (2) | Party                B demolishes or changes the structure of the buildings without Party                A’s                written permission. |
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|  | (3) | Party                B unilaterally dissolves this agreement without Party A’s written                permission. |
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|  | (4) | Party                B uses the buildings in a way other than that stipulated in this                agreement                or conducts illegal activities in it. |
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|  | (5) | Party                B fails to pay rent timely for over one month. |
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| 2. | For                every day of overdue payment by Party B, Party B should pay a penalty                of                two times of the amount calculated as daily rent. |
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| 3. | Upon                expiration of the contract, Party B shall return possession of the                building in a timely manner. For every day of the delay of repossession                of                the property, Party B should pay find five times of the amount calculated                as daily rent. |
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**Article      Thirteen**

| 1. | In                the event this contract cannot be fulfilled and any losses are sustained                by either of the parties due to a force majeure event, Party A and                Party B                shall not have any obligations the other party for any resulting                losses. |
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| 2. | In                the event that any demolition or rebuilding of the leased properties                is                required by government action, neither party shall have any liability                to                the other party for resulting damages. |
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| 3. | In                the event the agreement is terminated due any of the above-mentioned                causes, the rent shall be calculated by actual length of time when                the                property is used, and for any deficient month, the rent is calculated                day                by day, with credit back for any surplus and charge back for any                deficiency. |
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| 4. | Force                Majeure means a disruptive event or condition which is unforeseen                and                beyond the reasonable control of the parties. |
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**Article      Fourteen**

**Article      Fifteen**

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**Article      Sixteen**

**Article      Seventeen**

| Lessor (Party A):       | Jiangsu                Ever-Glory International Group Co. (seal)    |
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|               |                                                                |
| Lessee (Party B):  | Nanjing                  New-Tailun Garments Co., Ltd.  (seal) |

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