Document:

Exhibit 4.2
                             Articles of Association
                                       of
            Wholly Foreign-owned Goldenway Nanjing Garments Co., Ltd.
                           Amended on December 8, 2004

Chapter 1       General Provisions
Chapter 2       Objectives, Scope and Scale of Production and Business
Chapter 3       Total Investment Amount and the Registered Capital
Chapter 4       Board of Directors
Chapter 5       Business Management Office
Chapter 6       Legal Representative of the Company
Chapter 7       Taxation, Finance and Foreign Exchange Management
Chapter 8       Distribution of Profits
Chapter 9       Labor Management
Chapter 10      Trade Union
Chapter 11      Duration, Dissolution and Liquidation
Chapter 12      Rules and Regulations
Chapter 13      Supplementary Provisions

Chapter 1 General Provisions

Article 1
In  accordance  with Law of the  People's  Republic of China on  Foreign-Capital
Enterprises  and other  relevant  Chinese laws and  regulations,  Perfect  Dream
Limited,  a corporation  organized under the laws of British Virgin Islands (the
"Perfect  Dream")  intends  to  set  up  Goldenway  Nanjing  Garments  Co,  Ltd.
(hereinafter  referred  to  as  the  Company),   an  exclusively   foreign-owned
enterprise,  in  Jiangning  Economic-Technological  Development  Area of Nanjing
city,  the  People's  Republic of China.  For this  purpose,  these  Articles of
Association hereunder are worked out.

Article 2
The name of the Company in Chinese is _________.
The name of the Company in English is Goldenway Nanjing Garments Co, Ltd.
The  legal  address  of  the  Company  is  at  No.2,   Jinger  Road,   Jiangning
Economic-Technological Development Area, Nanjing city, PRC.

Article 3
The investing  party is registered in accordance with the laws of British Virgin
Islands

<PAGE>

The legal name of the investing party is Perfect Dream Limited

Its legal  address is:  Akara Bldg,  24 De Castro  Street,  Wickhams Cay I, Road
Town, Tortola, British Virgin Islands.

Its legal representative: Name Kang Yi Hua ; Nationality: China;

Position: President.

Article 4
The  organization  form of the  Company  is a  limited  liability  Company.  The
investing  party is  liable  to the  Company  within  the  limit of its  capital
subscription,  and the Company shall assume external liabilities with all of its
assets.

Article 5
The  Company is under the  governance  and  protection  of Chinese  laws and its
activities must comply with the  stipulations  of the Chinese laws,  decrees and
relevant regulations and shall not damage the public interests of China.

        Chapter 2 Objectives, Scope and Scale of Production and Business

Article 6
The  objective  of the  Company  is to  produce  and sell all kinds of  clothes,
develop  new  products,  and  sharpen  competitive  edge in the world  market in
product  quality and price by adopting  advanced and  applicable  technology and
scientific  management  methods,  so as to raise  economic  results  and  ensure
satisfactory economic benefits for the investing party.

Article 7
The business  scope of the Company is: produce and sell all kinds of clothes and
accessories, all the products for the overseas market.

Article 8
The  production  scale of the  Company  after being put into  operation  is over
2,500,000 pieces per year.

Article 9
The  Company  is  responsible  for the sales of the  products  to  domestic  and
overseas markets.

          Chapter 3 Total Investment Amount and the Registered Capital

Article 10
The amount of total investment of the Company is USD 25,000,000;  The registered
capital is USD 20,000,000.

<PAGE>

Article 11
The contribution of the Company are:
Subscribed  Capital:  USD  20,000,000;  accounting  for  100% of the  registered
capital.  Paying off all the capital  within  three  years upon the  issuance of
business  license.  The capital  contribution  of each party shall be  converted
according to the current  numeraire  exchange rate of 'State  Administration  of
Foreign Trade.

Article 12
The investing party shall contribute the registered  capital compliance with the
contract.

Article 13
After the capital  contribution of the Company to any  installment,  the Company
shall engage  certified  public  accountants  registered  in China to verify the
capital and present a report on the verification of capital. The contents of the
capital verfication include the name of the Company,  the date of establishment,
the name of the investing party, the number and date of capital contribution and
the date of the issuance of the certificate of capital contribution and so on.

Article 14
The  increase  of the  registered  capital  shall be  unanimously  agreed by the
investing  party,  and approved by the foreign  trade and  economic  cooperation
bureau of Jiangning district , Nanjing city.

Article 15
The increase and transfer of the registered  capital of the Company shall, after
being unanimously agreed by the Board of Directors,  be submitted to the foreign
trade and economic  cooperation  bureau of Jiangning district , Nanjing city for
approval  and  go  through   alteration   formalities  with  the  administrative
department of industry and commerce of Jiangning district, Nanjing city.

                          Chapter 4 Board of Directors

Article 16
The  Company  shall set up the Board of  Directors,  which  shall be the highest
authority of the Company.

<PAGE>

Article 17
The Board of  Directors  is  composed of 5  directors.  The members of the Board
shall be appointed by the investing party. The term of office for the directors,
is four years, and their term of office may be renewed

Article 18
The board of directors shall set up one  chairperson.  The Chairperson  shall be
appointed by the investing party.

Article 19
The board of directors  shall decide on all major issues  concerning the Company
as follows:

1) the major issues  submitted by the general  manager(  such as the  production
plan, the annual business report, the financing, the loans and so on);
2) the annual  financial  statements,  the budget of income  and  expenses,  the
distribution plan of income per year;
3) the major rules and regulations;
4) the establishment of the branch offices;
5) amendments of the articles of association of the Company;
6) the  appointment  of the general  manager,  the deputy general  manager,  the
general engineer, the general accountant, the auditor and other senior managers;
7) the termination and liquidation on the expiration of the Company ;
8) other major issues decided by the board of directors.

Article 20
The investing party shall inform the board of directors in written notice of the
appointment and the replacement of the directors.

Article 21
The Board of  Directors  shall  convene at least one  meeting  every  year.  The
chairperson may convene an interim meeting based on a proposal made by more than
one third of the total number of directors.

Article 22
The board meeting shall principally be held in the place of the Company.

Article 23
The board meeting  shall be presided by the  chairperson.The  chairperson  shall
entrust other representatives to convene the meeting upon his absence.

<PAGE>

Article 24
The  chairperson  shall inform every  directors in written notice of the meeting
subjects, time and the place before twenty days.

Article 25
The Board meeting shall not be held legally  without the attendance of more than
two thirds of directors. Each director has one vote.

Article 26
In case a director cannot attend the Board meeting, he/she should issue a letter
of  attorney  entrusting  other  person to attend the Board  meeting and vote on
his/her  behalf.  Should he/she not attend or entrust other person to attend the
Board meeting in due course,  he/she shall be deemed to waive his/her right. The
board of directors can convene a special meeting without the legal attendance of
the meeting.  Being unanimously  agreed by the directors present at the meeting,
the board of directors still can decide on the major issues of the Company.

Article 27
Each Board meeting shall have detailed minutes, which shall be signed by all the
directors  present at the meeting.  The meeting  minutes shall be put on file of
the Company for future reference.

Article 28
Unanimous  approval of all the  directors  present to the Board meeting shall be
required for any decisions concerning the following issues:

1. modification of the Articles of Association of the Company;
2. termination or dissolution of the Company;
3.  termination  or  dissolution  or the  liquidation  on the  expiration of the
Company
4. readjustment of registered capital of the Company;
5. merger of the Company with other economic organizations and other issues
6. major reports  submitted by the general  manger  (production  plan,  business
report ,the financing report etc)
7. annual financial  statements,  budget of balance,  the  distribution  plan of
income. Other issues can be passed by the decisions of simple majority.

                      Chapter 5 Business Management Office

Article 29
The Company shall set up business management office,  including  engineering and
technology, finance, sales and general manager office and other departments

<PAGE>

Article 30
The Company exercises general manager  responsibility  system,  with one general
manager and one deputy general manager to be engaged by the Board of Directors.

Article 31
The general manager is directly  responsible to the Board of Directors and shall
carry out the various  decisions of the Board and organize and guide the overall
production of the Company.  The deputy general managers shall assist the general
manager in his/her work.  The general  manager shall entrust the deputy  general
manager to exercise his post upon his absence.

Article 32
The  decision on major  issues in the daily work of the Company  shall not be in
effect without the co-signing by the general manager and deputy general manager.
The issues needed co-signing shall be decided by the board of directors.

Article 33
The term of office of the general  manager and deputy  general  manager shall be
four years, and engaged by the board of directors, and can be renewed.

Article 34
The  chairperson  and the  directors can exercise the general  manger,or  deputy
general  manager or other senior mangers of the Company by the engagement of the
board of directors.

Article35
The general manager or the deputy general manager can not assume another general
manager or the deputy  general  manager or other  senior  managers  in the other
economic  organizations.  Nor can they attend the business  competition with the
Company by the side of other economic organizations.

Article36
The Company shall set up one general  engineer,  one general  accountant and one
auditor respectively whom shall be engaged by the board of directors.

Article37
The general  engineer,  the general  accountant and the auditor shall work under
the leadership of the general manager.
The general  accountant is responsible  for the  accounting of the Company,  and
organizes  the  overall  economic  examination,  and  carries  out the  economic
responsibility system.
The general  auditor is  responsible  for the  finance  auditing,  checking  the
balance and the accounts of the Company.

<PAGE>

Article38
The general  manager,  the deputy general  manager,  the general  engineer,  the
general accountant, the general auditor and other senior managers shall submit a
formal  report  before  they  apply  for  resignation.  The  above  staff may be
dismissed  at anytime upon the decision of the board of directors in any case of
jobbery or malpractice. Or be prosecuted upon crime.

                         Chapter 6 Legal Representative

Article 39

The chairperson of the Board is the legal representative of the Company.

Article 40

The  chairperson  can  temporarily  authorize  the  vice-chairperson,any   other
director,  general  manager or deputy general  manager to negotiate and sign the
documents outside.

           Chapter 7 Taxation, Finance and Foreign Exchange Management

Article 41
The Company shall pay various items of taxes in accordance with relevant Chinese
laws and stipulations on taxation.

Article 42
The fiscal  year of the Company  shall be from  January 1 to December 31 of each
Gregorian calendar year.

Article 43
All  accounting  vouchers,  account  books and  statements  shall be  written in
Chinese.

Article 44
The Company shall use RMB  bookkeeping.  Conversion of RMB with other currencies
shall be  calculated  on the  basis of  middle  rate  promulgated  by the  State
Administration of Foreign Exchange on the day of arising.

Article 45
The Company shall open a foreign  currency account and a RMB account in the bank
of China or other banks.

<PAGE>

Article 46
The Company shall, according to international practice, adopt accrual accounting
system and debit-credit book-keeping method.

Article 47
The account books of the Company shall be recorded as follows: 1)all the cash-in
and  cash-out of the Company;  2)all the sales of products and  purchases of the
Company;  3)the  registered  capital  and  liabilities  of the  Company;  4) the
accruement ,transfer and the contribution time of the registered capital.

Article 48
In the  first 3 months of each  fiscal  year,  the  financial  department  shall
prepare the previous year's balance sheet and profit and loss  statement.  After
signing by the auditor,  they should be submitted to the Board of Directors  for
examination and approval.

Article 49
The  investing  party has the right to hire the auditor to check and examine the
financial books of the Company. The Company shall provide convenience.

Article 50
The Board of  Director  decide  on the  discount  year term of the fixed  assets
according  to Income Tax Law of the People's  Republic of China for  Enterprises
with Foreign Investment and Foreign Enterprises

Article 51
The foreign  exchange  issues of the Company shall be handled in accordance with
Provisional Regulations for Exchange Control of the People's Republic Of China

                        Chapter 8 Distribution of Profits

Article 52
The Company shall set aside  allocations  for reserve funds,  expansion funds of
the  Company  and  welfare  funds and  bonuses  for staff and  workers  from the
after-income-tax  profits.  The  specific  proportion  of  allocations  shall be
decided by the Board of Directors

 Article 53
The  remaining  profits after  payment of Company  income tax and  allocation of
various funds shall be distributed  to the investing  party except for the other
decisions made by the Board of Directors.

<PAGE>

Article 54
The profits of the Company  shall be  distributed  annually,  In three months of
after every fiscal year the profit  distribution plan and the distributed amount
shall be announced.

Article 55
The profits of the Company shall be distributed annually and no profits shall be
distributed  should  the  losses  in the  previous  years  not be  covered.  The
undistributed  profits in the past fiscal years can be distributed together with
the distributable profits in the current fiscal year.

                           Chapter 9 Labor Management

Article 56
Such issues of the Company as recruitment,  employment,  dismissal, resignation,
welfare,  labor  protection and labor  discipline shall be handled in accordance
with  Labor  Management  Regulation  of  the  People's  Republic  of  China  for
Enterprises with Foreign Investment The Company shall not employ child labor.

Article 57
The  employees  required by the company  can be  recommended  by the local labor
administration  authority,  or recruited by the Company after the consent of the
local labor administration  authority.  All the employees need pass the exam and
the best candidates can be recruited.

Article58
The Company has the power to impose  punishment  such as  disciplinary  warning,
demerit recording, wage reduction and even dismissal in case of grave misconduct
on the staff  members and workers  violating  the rules,  regulations  and labor
discipline  of the  Company.  Dismissal of staff member or worker shall be filed
with the local labor administration authority.

Article 59
The wages and remuneration of the staff members and workers of the Company shall
be decided by the Board of Directors in accordance with relevant stipulations in
China and  according to the  situation of the Company and shall be  specifically
stipulated in the labor contract.

Article 60
The welfare,  the bonus,the labor  protection and the insurance shall be decided
on the relevant regulations, to safeguard the production and work in the natural
circumstance.

<PAGE>

                             Chapter 10 Trade Union

Article 61
The staff  members  and  workers of the  Company  have the right to set up trade
union  organization  and carry out trade union activities in accordance with the
provisions of Trade Union Law of the People's Republic of China.

Article 62
The trade union of the Company represents the interests of the staff members and
workers. It plays the following roles:
safeguarding  the lawful  rights and  interests  of staff  members  and  workers
according to law,
assisting the Company in proper  allocation and utilization of employee  welfare
and bonus fund,
organizing the staff members and workers to study politics,  science, technology
and professional knowledge and carry out recreational and physical activities,
educating the staff members and workers to observe labor  discipline  and strive
to fulfill the various economic targets of the Company.

Article 63

The trade union of the Company can, on behalf of the staff  members and workers,
enter  into  collective  labor  contract  with the  Company  and  supervise  the
performance of the labor contract.

Article 64
When the Company  study and decide on the issues  relating to staff  members and
workers such as reward and punishment,  wage system,  welfare,  labor protection
and insurance,  the  representatives of the trade union have the right to attend
the meeting The Company shall listen to the opinions of the trade union and seek
cooperation from the trade union.

Article 65
The trade  union of the  Company  shall take part in the  intermediation  of the
disputes between the staff members and workers and the Company.

Article 66
The Company  shall  allocate on a monthly basis 2% of the actually paid wages of
the staff  members and  workers as its trade union fund,  which shall be used by
its trade union in  accordance  with the  measures of All-China  Association  of
Trade Union on the management of trade union fund.

<PAGE>

                Chapter 11 Duration, Dissolution and Liquidation

Article 67
The operating period of the Company is 30 years and shall start from the date on
which the business license of the Company is issued.

Article 68
Should the  investing  party  decide to extend the  operating  period,  it shall
submit a written  application  to the  Foreign  Trade and  Economic  Cooperation
Bureau of Jiangninggning District of Nanjing City at least 6 months prior to the
expiry date of the  operating  period.  The  duration  can be extended  upon the
approval  of  the   examination   and  approval   authority  and  completion  of
registration  formalities  in the  Administration  of Industry  and  Commerce of
Jiangning District , Nanjing City.

Article 69
On unanimous conclusion that the termination of the Company is for the best
interest of the investing party, the investing party has the legal right to
close the Company ahead of time. The termination of the Company shall be decided
by the board of directors, and submit to and get the approval of the Foreign
Trade and Economic Cooperation Bureau of Jiangninggning District of Nanjing City

Article 70

The Board of Directors can decide to terminate the Company ahead of
time due to the following reasons:
1.  The expiration of the operating period
2.  Heavy losses due to mismanagement; unable to go on business
3.  Unable to go on business due to the  violation of the contracts and articles
    of association of the Company.
4.  Unable to go on business due to heavy losses caused by force majeure such as
    natural disaster and war;
5.  Unable to achieve the  operation  objectives  due to the great change of the
    business  situation,  and no need for the  existence  and no future  for the
    development;
Upon the  requirement of termination of the contract by any party,  the board of
directors shall convene a meeting to make a decision immediately.

Article 71
Upon the expiration or termination of the operating  period of the Company,  the
Board of Directors  shall  formulate  liquidation  procedures and principles and
organize a  liquidation  committee to conduct  liquidation  on the estate of the
Company.

Article 72
The role of the  liquidation  committee  is to check up  completely  the assets,
creditor's  rights and  liabilities  of the Company,  prepare  balance sheet and
statement of assets,  formulate  liquidation  scheme and  implement  this scheme
after the board of directors pass it.

<PAGE>

Article 73
During the period of  liquidation,  the  liquidation  committee shall act as the
legal representative of the Company in filing and responding to lawsuits.

Article 74
The  liquidation  expenses shall be paid in priority from the existing assets of
the Company.

Article 75
After the  liquidation  of the  Company  is over,  the  remaining  assets  after
liquidation of debts shall be distributed to the investing party.

Article 76
After the  liquidation is over, the Company shall go through the  formalities of
registration  cancellation  with the  administrative  department of industry and
commerce,  hand in the  business  license  for  cancellation  and  announce  the
liquidation to the public.

Article 77
After the  dissolution  of the Company,  all the account books should be kept by
the investing party.

                        Chapter 12 Rules and Regulations

Article78

The Company shall formulate the following rules and regulations through the
Board of Directors:
1.  business  management  system,  including  the function and power and working
    procedure of the subordinate management departments;
2.  code of conduct for employees;
3.  labor and wage system;
4.  work attendance, promotion, reward and punishment system for employees;
5.  employee welfare system;
6.  financial system;
7.  liquidation procedure for liquidation of the Company;
8.  other necessary rules and regulations.

<PAGE>

                       Chapter 13 Supplementary Provisions

Chapter 79
The  modification  of  the  present  Articles  of  Association  must  be  passed
unanimously on the board meeting,  and submit to and get approval of the Foreign
Trade and  Economic  Cooperation  Bureau of  Jiangninggning  District of Nanjing
City.

Article 80
The present Articles of Association shall be written in Chinese.

Article 81
The present  Articles of Association will become valid only upon the approval of
the Foreign Trade and Economic Cooperation Bureau of Jiangninggning  District of
Nanjing City The same applies to the amendment to these Articles of Association.

Article 82
The present  Articles of  Association  is signed in Nanjing  (place) on December
8th,  2004  (date) by the legal  representative  of the  investing  party or its
authorized representative.

Legal representative of the Company or its authorized representative

Signature (stamp)

                                                December 8th, 2004Exhibit 10.1
                       EQUITY INTEREST TRANSFER AGREEMENT
                       ----------------------------------

    This Equity  Interest  Transfer  Agreement  ("Agreement")  is made as of 2nd
December,  2004 by and between Ever-glory  Enterprises (H.K.) Ltd.  (hereinafter
referred  as  "Seller")  and  Perfect  Dream  Limited  (hereinafter  referred as
"Purchaser").

WHEREAS,  Seller is a company organized under the laws of British Virgin Islands
with principal address at Akara Bldg, 24 De Castro Street,  Wickhams Cay 1, Road
Town, Tortola, British Virgin Islands.

WHEREAS,  Purchaser  is a company  organized  under the laws of  British  Virgin
Islands with its principal address at Akara Bldg, 24 De Castro Street,  Wickhams
Cay I, Road Town, Tortola, British Virgin Islands.

WHEREAS,  Goldenway Nanjing Garments Co., Ltd.  ("Goldenway") is a joint venture
company  organized  under the laws of People's  Republic of China ("China") with
its  principal  address  at 2 Jinger  Road,  Jiangning  Economy  and  Technology
Development Zone, Nanjing, Jiangsu Province, China.

WHEREAS,  Seller  will sell all of its equity  interest  in  Goldenway  ("Equity
Interest"),  48.71% of all the equity  interest of  Goldenway,  to  Purchaser in
exchange for US$50,000.

THEREFORE, the parties agree as follows:

                                    SECTION 1
                         Transfer of the Equity Interest

         1.1  Transfer  of  the  Equity  Interest.  Subject  to  the  terms  and
conditions hereof, Seller agrees to transfer to Purchaser its Equity Interest in
Goldenway  for the  purchase  price of  US$50,000.00,  having  the full  rights,
preferences and privileges as provided under the laws of California, U.S.A., and
as set forth in the  Articles of  Incorporation  of Goldenway  (the  "Articles")
attached hereto as Exhibit A.

         1.2 Closing  Date.  The closing of the transfer of the Equity  Interest
hereunder (the "Closing") shall be held at the principal office of Goldenway, on
the date of this Agreement or at such other time and place upon which Seller and
Purchaser shall agree (the date of the Closing is hereinafter referred to as the
"Closing Date").

         1.3  Delivery.   At  the  Closing,   Seller  shall  deliver  the  valid
governmental  approval of the transfer of its Equity Interest to Purchaser,  and
Purchaser  shall pay the purchase price by wire transfer or check payable to the
order of Seller thereof pursuant to Section 1.1 above.

<PAGE>

         1.4  Liability.  Purchaser  shall assume all debts and  liabilities  of
Seller in connection with Seller's shares in Goldenway.

                                    SECTION 2
                    Representations and Warranties of Seller

    Seller hereby represents and warrants to Purchaser as follows:

         2.1 Ownership.  Seller has the full right, power and authority to sell,
transfer,  and deliver to Purchaser,  in  accordance  with this  Agreement,  the
Equity  Interest  as stated in Section  1.1 above,  free and clear of all liens,
charges, claims, equities, restrictions, and encumbrances.

         2.2  No  Violation  of  Law.  The  execution  and  carrying  out of the
provisions of this Agreement and  compliance of the provisions  hereof by Seller
will not violate any  provision of law and will not  conflict  with or result in
any breach of any of the terms,  conditions  or  provisions  of, or constitute a
default under, or result in the creation of any lien, charge or encumbrance upon
any of  the  properties  or  assets  of  Seller  pursuant  to  the  articles  of
incorporation,  bylaws, or any indenture,  mortgage, deed of trust, agreement or
other instrument to which Seller is a party or by which it is bound or affected.

         2.3 Offering.  Subject to the accuracy of the representations set forth
in Section 3 hereof,  the sale of the Equity Interest pursuant to this Agreement
constitutes transactions exempt from the registration  requirements of Section 5
of the Securities Act of 1933 of U.S.A., as amended (the "Securities Act").

         2.4 Seller's Power.  Seller will have on the Closing Date all requisite
legal and corporate  power and authority to execute and deliver this  Agreement,
to sell and issue the Equity Interest.

                                    SECTION 3
                   Representations and Warranties of Purchaser

         Purchaser represents and warrants to Seller as follows:

         3.1 Organization and Standing of Purchaser. Purchaser is a company duly
organized  and  existing  under,  and by virtue of,  the laws of British  Virgin
Islands and is in good standing under such laws.

<PAGE>

         3.2  No  Violation  of  Law.  The  execution  and  carrying  out of the
provisions  of  this  Agreement  and  compliance  of the  provisions  hereof  by
Purchaser  will not violate any  provision of law and will not conflict  with or
result in any  breach  of any of the  terms,  conditions  or  provisions  of, or
constitute a default  under,  or result in the  creation of any lien,  charge or
encumbrance  upon any of the  properties or assets of Purchaser  pursuant to the
articles of incorporation,  bylaws, or any indenture,  mortgage,  deed of trust,
agreement or other  instrument  to which  Purchaser is a party or by which it is
bound or affected.

         3.3  Purchaser's  Power.  Purchaser  will have on the Closing  Date all
requisite  legal and  corporate  power and authority to execute and deliver this
Agreement, and to purchase the Equity Interest.

                                    SECTION 4
                   Representations and Warranties of Goldenway

         4.1  Organization  and  Standing.   Goldenway  is  a  corporation  duly
organized and existing under,  and by virtue of, the laws of the China and is in
good  standing  under such laws.  Goldenway has  requisite  corporate  power and
authority  to own and operate  its  properties  and assets,  and to carry on its
business as presently conducted and as proposed to be conducted.

         4.2  No  Violation  of  Law.  The  execution  and  carrying  out of the
provisions  of  this  Agreement  and  compliance  of the  provisions  hereof  by
Goldenway  will not violate any  provision of law and will not conflict  with or
result in any  breach  of any of the  terms,  conditions  or  provisions  of, or
constitute a default  under,  or result in the  creation of any lien,  charge or
encumbrance  upon any of the  properties or assets of Goldenway  pursuant to the
articles of incorporation,  bylaws, or any indenture,  mortgage,  deed of trust,
agreement or other  instrument  to which  Goldenway is a party or by which it is
bound or affected.

         4.3 Exempted Transfer.  Subject to the accuracy of the  representations
set forth in Section 2 hereof,  the transfer of the Equity Interest  pursuant to
this   Agreement   constitutes   transactions   exempt  from  the   registration
requirements of Section 5 of the Securities Act.

         4.4  Company's  Power.  Goldenway  will  have on the  Closing  Date all
requisite  legal and  corporate  power and authority to execute and deliver this
Agreement.

         4.5 Governmental Approval.  Goldenway will be responsible for obtaining
all the  necessary  approval  by and  registration  with  the  relevant  Chinese
governmental  agencies in  connection  with the transfer of the Equity  Interest
pursuant to Section 1 above.

<PAGE>

                                    SECTION 5
                           Investment Representations

         Purchaser  hereby  represents  and warrants to Seller and  Goldenway as
follows:

         5.1 Experience.  Purchaser has, from time to time, evaluated investment
in companies doing similar businesses as Goldenway and has, either  individually
or through the  personal  experience  of one or more of its current  officers or
partners,  experience in evaluating and investing in such  companies.  Purchaser
has  substantial  experience  in evaluating  and investing in private  placement
transactions  of  securities  in  companies  similar to  Goldenway so that it is
capable of evaluating  the merits and risks of its  investment in Goldenway,  or
through  other similar  experience  has the  necessary  financial  knowledge and
experience to protect its own interests.

         5.2  Investment.   Purchaser  is  acquiring  the  Equity  Interest  for
investment  for its own  account  and not with the view  to,  or for  resale  in
connection with, any distribution  thereof.  Such Purchaser understands that the
Equity Interest to be purchased has not been registered under the Securities Act
by  reason of a  specific  exemption  from the  registration  provisions  of the
Securities Act which depends upon,  among other things,  the bona fide nature of
the investment intent as expressed herein.

         5.3 No Public Market. Such Purchaser  understands that no public market
now exists for any of the securities issued by Goldenway and that it is unlikely
that a public market will ever exist for such securities.

         5.4  Access  to  Data.  Purchaser  has had an  opportunity  to  discuss
Goldenway's   business,   management  and  financial  affairs  with  Goldenway's
management  and has had the  opportunity  to review  Goldenway's  facilities and
relevant business documents.  It has also had an opportunity to ask questions of
officers of Goldenway,  which  questions  were answered to the  satisfaction  of
Purchaser.

                                    SECTION 6
                                  MISCELLANEOUS

         6.1  Governing  Law.  This  Agreement  shall be governed by the laws of
California, U.S.A.

         6.2 Survival. The representations, warranties, covenants and agreements
made herein shall survive any investigation made by Purchaser and the closing of
the transactions contemplated hereby.

         6.3 Successors and Assigns.  Except as otherwise  provided herein,  the
provisions  hereof  shall  inure to the  benefit  of, and be binding  upon,  the
successors,  assigns, heirs, executors and administrators of the parties hereto,
provided,  however, that the rights of Purchaser to purchase the Equity Interest
shall not be assignable without the consent of the Seller.

<PAGE>

         6.4 Entire  Agreement.  This Agreement  constitutes  the full and final
understanding  between the parties  with regard to the  subjects  hereof and all
previous and any other contemporaneous condition is hereby VOIDED.

         6.5  Notices,  etc.  All notices and other  communications  required or
permitted  hereunder  shall be in writing and shall be mailed by  registered  or
certified mail, postage prepaid, or otherwise delivered by hand or by messenger,
addressed (a) if to the  Purchaser,  to  Purchaser's  address as shall have been
furnished to Goldenway in writing by such  Purchaser or (b) if to Goldenway,  to
its  address  or  addresses  as  Goldenway  shall have  furnished  in writing to
Purchaser, (c) if to Seller, to Seller's address as shall have been furnished to
Goldenway in writing by such Seller. All notices and other communications mailed
pursuant to the  provisions of this Section 6.6 shall be deemed  delivered  when
mailed.

         6.6 Expenses. Each party shall bear its own expenses in relation to the
transfer of Equity Interest hereunder.

         6.7 Counterparts.  This Agreement may be executed in counterparts, each
of which  shall  be  enforceable  against  the  party  actually  executing  such
counterpart, and which together shall constitute one instrument.

         6.8  Severability.  In the event that any  provision of this  Agreement
becomes or is  declared  by a court of  competent  jurisdiction  to be  illegal,
unenforceable  or void,  this Agreement  shall continue in full force and effect
without said provision; provided that no such severability shall be effective if
it materially changes the economic benefit of this Agreement to any party.

         6.9  Amendments  and Waivers.  Neither this Agreement nor any provision
thereof  may  be  waived,  modified,  discharged  or  terminated  except  by  an
instrument in writing signed by both parties.

         6.10  Acknowledgment of Attorney  Representation.  Purchaser and Seller
acknowledge  that King & Wood P.R.C.  Lawyers ("King and Wood") has acted as the
attorney for Goldenway  and not for  Purchaser or Seller in connection  with the
execution of this Agreement.  All parties hereby waive any potential conflict of
interests in connection with the transactions  hereunder,  as might be caused by
the prior and/or  future  representation  of Purchaser  and/or  Seller by King &
Wood.

The foregoing Agreement is hereby executed as of the date first above written.

<PAGE>

SELLER:  Ever-glory Enterprises (H.K.) Ltd.

Signature:
          ----------------------------------
Name:     Kang Yihua
          ----------------------------------
Title:    President
          ----------------------------------

PURCHASER: Perfect Dream Limited
--------------------------------

Signature:
          ----------------------------------
Name:      Kang Yihua
          ----------------------------------
Title:     President
          ----------------------------------

GOLDENWAY: Goldenway Nanjing Garments Co., Ltd.

Signature:
           ---------------------------------------------------
Name:             Kang Yihua
      --------------------------------------------------------
Title:            President
       -------------------------------------------------------

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