-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Dt8sPsvBh/31j9EJrGzBMCMbgs18+vwkV9vhV4I96zSo2jjk9CoKxP/Tp7A/Ylvk MHo/rxHy7WqaB+iQ7pu4hg== 0001214659-06-002345.txt : 20061129 0001214659-06-002345.hdr.sgml : 20061129 20061129152016 ACCESSION NUMBER: 0001214659-06-002345 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20060930 FILED AS OF DATE: 20061129 DATE AS OF CHANGE: 20061129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ever-Glory International Group, Inc. CENTRAL INDEX KEY: 0000943184 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT [8700] IRS NUMBER: 650548697 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-28806 FILM NUMBER: 061245158 BUSINESS ADDRESS: STREET 1: 17870 CASTLETON STREET STREET 2: SUITE 335 CITY: CITY OF INDUSTRY STATE: CA ZIP: 91748 BUSINESS PHONE: 305-531-1174 MAIL ADDRESS: STREET 1: 17870 CASTLETON STREET STREET 2: SUITE 335 CITY: CITY OF INDUSTRY STATE: CA ZIP: 91748 FORMER COMPANY: FORMER CONFORMED NAME: ever-glory international group, inc. DATE OF NAME CHANGE: 20051121 FORMER COMPANY: FORMER CONFORMED NAME: ANDEAN DEVELOPMENT CORP DATE OF NAME CHANGE: 19950329 10QSB/A 1 f11286110qsba1.htm AMENDMENT NO. 1

 

 

 

U.S. Securities and Exchange Commission

Washington, D.C. 20549

 


 

FORM 10-QSB/A

[Amendment No. 1]

 


 

x

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended September 30, 2006

 

o

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _______ to _______

 

Commission file number: 0-28806

 

EVER-GLORY INTERNATIONAL GROUP, INC.

(Exact name of small business issuer as specified in its charter)

 

 

Florida

65-0420146  

(State or other jurisdiction of

(IRS Employer identification No.)

incorporation or organization)

 

 

17870 Castleton Street, #335

City of Industry, California 91748

(Address of principal executive offices)

 

(626) 839-9116

 

(Issuer’s telephone number)

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

 

Number of shares of common stock outstanding as of November 10, 2006: 19,971,758

 

Transitional Small Business Disclosure Format: Yes o No x

 


 

1

 


 

 

EVER-GLORY INTERNATIONAL GROUP, INC.

FORM 10-QSB/A

INDEX

 

 

Page

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

3

 

PART I. FINANCIAL INFORMATION

 

5

 

Item 1.

Financial Statements (Unaudited)

 

5

 

 

Condensed Consolidated Balance Sheet as of September 30, 2006

 

5

 

 

Condensed Consolidated Statements of Operations and Comprehensive income for three and nine months ended September 30, 2006 and 2005

 

6

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2006 and 2005

 

7

 

 

Notes to the Condensed Consolidated Financial Statements as of September 30, 2006

 

8

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

15

 

Item 3.

Controls and Procedures

 

26

 

PART II. OTHER INFORMATION

 

26

 

Item 1.

Legal proceedings

 

26

 

Item 4. Submission of Matters to A Vote of Security Holders  

27

 

.Item 6.

 Exhibits and Reports on form 8-K

 

28

 

SIGNATURES

 

30

 

 

 

2

 


Table of Contents

EXPLANATORY NOTE

This Amendment No. 1 on Form 10-QSB to our Quarterly Report on Form 10-QSB for the quarter ended September 30, 2006, originally filed with the United States Securities and Exchange Commission (SEC) on November 14, 2006, is being filed for the purpose of filing exhibit 10.1 in its entirety. Exhibit 10.1 filed herewith supersedes exhibits 10.1 filed with the Registrant’s Quarterly Reports on Form 10-QSB filed on August 11, 2006 and November 14, 2006 – each of which omitted parts of the exhibit.

SPECIAL NOTE REGARDING FORWARD—LOOKING STATEMENTS

On one or more occasions, we may make forward-looking statements in this Quarterly Report on Form 10-QSB regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “targets,” “will likely result,” “will continue” or similar expressions identify forward-looking statements. These forward-looking statements are only our predictions and involve numerous assumptions, risks and uncertainties, including, but not limited to those listed below and those business risks and factors described elsewhere in this report and our other Securities and Exchange Commission filings.

Forward-looking statements involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management’s examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that our projections will be achieved. Factors that may cause such differences include but are not limited to:

 

the ability to timely and accurately complete product orders;

 

the ability to coordinate product design with its customers;

 

its dependence on a limited number of larger customers;

 

political and economic factors in the Peoples’ Republic of China;

 

the ability of the Company’s internal production operations to increase production volumes on finished goods in a timely fashion in response to increasing demand and enable the Company to achieve timely delivery of finished goods to its customers;  

 

the Company’s ability to expand and grow its distribution channels;

 

unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders;

 

a weakening of economic conditions which would reduce demand for products sold by the Company and could adversely affect profitability;

 

 

the effect of terrorist acts, or the threat thereof, on consumer confidence and spending, or the production and distribution of product and raw materials which could, as a result, adversely affect the Company’s operations and financial performance;

 

the acceptance in the marketplace of the Company’s new products and changes in consumer preferences;

 

reductions in sales of products, either as the result of economic or other conditions, or reduced consumer acceptance of a product, could result in a buildup of inventory;

 

the ability to source raw materials and finished products at favorable prices to the Company;

 

the potential impact of power crises on the Company’s operations including temporary blackouts at the Company’s facilities;

 

foreign currency exchange rate fluctuations;

 

3

 


Table of Contents

 

 

earthquakes or other natural disasters;

 

the Company’s ability to identify and successfully execute cost control initiatives;

 

the impact of quotas, tariffs, or safeguards on the importation or exportation of the Company’s products;

 

our ability to fund and execute our business plan;

 

our ability to maintain an effective internal control structure.

 

other risks outlined above and in the Company’s other filings made periodically by the Company.


          We have attempted to identify, in context, certain of the factors that we believe may cause actual future experience and results to differ materially from our current expectation regarding the relevant matter or subject area. In addition to the items specifically discussed above, our business and results of operations are subject to the uncertainties described under the caption “Risk Factors” which is a part of the disclosure included in Item 2 of this Report entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

 From time to time, oral or written forward-looking statements are also included in our reports on Forms 10-KSB, 10-QSB and 8-K, Proxy Statements on Schedule 14A, press releases, analyst and investor conference calls, and other communications released to the public. Although we believe that at the time made, the expectations reflected in all of these forward-looking statements are and will be reasonable, any or all of the forward-looking statements in this quarterly report on Form 10-QSB, our reports on Forms 10-KSB and 8-K, our Proxy Statements on Schedule 14A and any other public statements that are made by us may prove to be incorrect. This may occur as a result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties. Many factors discussed in this Quarterly Report on Form 10-QSB, certain of which are beyond our control, will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from forward-looking statements. In light of these and other uncertainties, you should not regard the inclusion of a forward-looking statement in this Quarterly Report on Form 10-QSB or other public communications that we might make as a representation by us that our plans and objectives will be achieved, and you should not place undue reliance on such forward-looking statements.

 We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made on related subjects in our subsequent annual and periodic reports filed with the SEC on Forms 10-KSB, 10-QSB and 8-K and Proxy Statements on Schedule 14A.

Unless the context requires otherwise, references to “we,” “us,” “our,” the “Company” and “Ever-Glory” refer specifically to Ever-Glory International Group, Inc. and its subsidiaries.

 

4

 


Table of Contents

 

PART I - FINANCIAL INFORMATION

 

Item 1 – Financial Statements (Unaudited)

 

 EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

ASSETS
 
CURRENT ASSETS       
     Cash and cash equivalents    $  1,076,947 
     Accounts receivable, net      384,088 
     Inventories, net      326,403 
     Value added tax recoverable      19,010 
     Other receivables and prepaid expenses      91,138 
             Total Current Assets      1,897,586 
 
PROPERTY AND EQUIPMENT, NET      7,687,851 
 
LAND USE RIGHTS, NET      2,305,733 
TOTAL ASSETS    $  11,891,170 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES       
     Accounts payable    $  265,563 
     Accounts payable - related companies      110,046 
     Other payables and accrued liabilities      465,539 
     Due to a related company      3,574,891 
     Other tax payables      133,127 
             Total Current Liabilities      4,549,166 
 
COMMITMENTS AND CONTINGENCIES                                 - -
 
STOCKHOLDERS' EQUITY       
     Preferred stock ($.0001 par value, authorized 5,000,000 shares,       
             Nil shares issued and outstanding)     

     - 

     Series A Convertible Preferred Stock ($.0001 par value,       
             authorized 10,000 shares, 7,883 shares issued and outstanding)      1 
     Common stock ($.0001 par value, authorized 100,000,000 shares,       
             issued and outstanding 19,971,758 shares)      1,997 
     Additional paid-in capital      1,263,749 
     Retained earnings       

       Unappropriated 

    3,792,728 
       Appropriated      2,012,041 
       Accumulated other comprehensive income      271,488 
             Total Stockholders' Equity      7,342,004 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $  11,891,170 

 

The accompanying notes are an integral part of these condensed consolidated financial statements


5

 


Table of Contents

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME

(UNAUDITED)

 

      For the three      For the three        For the nine        For the nine 
      months ended      months ended        months ended        months ended 
     
September 30, 2006 
   
September 30, 2005 
     
September 30, 2006 
     
September 30, 2005 
           
NET SALES                             
   To related parties    $  53,173    $ 

-     

  $    66,192    $    512,401 
   To third parties      6,067,091      4,060,499        17,462,947        6,367,969 
Total net sales      6,120,264      4,060,499        17,529,139        6,880,370 
                             
COST OF SALES                             
   From related parties     (751,639)     (160,594)       (2,708,481)       (1,687,246)
   From third parties     (4,144,981)     (3,273,221)       (11,690,591)       (4,015,904)
   Total Cost of Sales     (4,896,620)     (3,433,815)       (14,399,072)       (5,703,150)
         
GROSS PROFIT      1,223,644      626,684        3,130,067        1,177,220 
         
OPERATING EXPENSES                             
                             
   Selling expenses      118,435      23,470        231,278        56,935 
   Export quota charges      4,984     

- 

      151,458       

- 

   Professional fees      79,105      80,795        425,625        293,295 
   General and administrative expenses      257,815      75,585        580,949        165,874 
   Depreciation and amortization      21,179      13,437        34,072        20,425 
Total Operating Expenses      481,518      193,287        1,423,382        536,529 
         
INCOME FROM OPERATIONS      742,126      433,397        1,706,685        640,691 
                             
OTHER INCOME (EXPENSES)                             
   Interest income      2,295      114,106        3,500        114,520 
   Interest expenses      (59,544)      (2,921)        (117,674)        (4,486) 
   Other income      6,194     

- 

      18,277       

- 

   Other expenses     

- 

    (2,336)       

- 

      (6,205) 
         Total Other Income (Expenses), net      (51,055)      108,849        (95,897)        103,829 
                         
INCOME BEFORE INCOME TAX EXPENSE  691,071      542,246        1,610,788        744,520 
                             
INCOME TAX EXPENSE      (113,352)      (119,269)        (255,883)        (222,607) 
         
NET INCOME      577,719      422,977        1,354,905        521,913 
                             
OTHER COMPREHENSIVE INCOME                             
   Foreign currency translation gain     

         -    

    21,415        238,060        21,415 
         
COMPREHENSIVE INCOME    $  577,719    $  444,392    $    1,592,965    $    543,328 
       
Net income share-basic    $  0.03    $  0.05    $    0.07    $    0.06 
       
Net income share-diluted    $  0.01    $  0.05    $    0.02    $    0.06 
       
Weighted average number of shares                             
   outstanding during the period-basic      19,971,758      8,876,427        19,971,758        8,083,270 
         
Weighted average number of shares                             
   outstanding during the period-diluted      79,886,746      8,876,427        79,886,746        8,083,270 
                             
                             

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

6


Table of Contents

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005.

(UNAUDITED)

 

 

             
      For the nine months      For the nine months 
     
ended September 30, 2006 
   
ended September 30, 2005 
     
CASH FLOWS FROM OPERATING ACTIVITIES             
     Net income    $  1,354,905    $  521,913 
     Adjusted to reconcile net income to cash (used in) provided
           by operating activities:
           
           Stock issued for services         -        42,045 
           Depreciation and amortization - cost of sales      153,278      98,806 
           Depreciation and amortization      34,072      20,425 
           Loss on disposal of fixed assets      2,467      - 
     Changes in operating assets and liabilities             
             
     (Increase)decrease in:             
           Accounts receivable      (147,799)      161,395 
           Accounts receivable - related companies        -        (2,064,854) 
           Other receivables and prepaid expenses      (70,183)      (203,343) 
           Inventories      69,804      164,249 
           Due from a related company            2,350,500 
     Increase (decrease) in:             
           Accounts payable      181,263      (48,761) 
           Accounts payable - related companies      (376,429)      78,670 
           Other payables and accrued liabilities      (589,403)      (1,307,712) 
           Value added tax payables      (68,286)      29,535 
           Income tax and other tax payables      192,148      32,436 
           Net cash provided by (used in) operating activities      735,837      (124,696) 
 
CASH FLOWS FROM INVESTING ACTIVITIES             
     Purchase of property and equipment      (4,156,750)      (650,309) 
           Net cash used in investing activities      (4,156,750)      (650,309) 
 
CASH FLOWS FROM FINANCING ACTIVITIES             
     Due to a related company      3,574,891        -   
     Proceed from note payable       -         616,523 
     Repayment of note payable      (611,247)        -   
           Net cash provided by financing activities      2,963,644      616,523 
 
EFFECT OF EXCHANGE RATE ON CASH      66,971      21,415 
 
NET DECREASE IN CASH AND CASH EQUIVALENTS      (390,298)      (137,067) 
             
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD      1,467,245      160,612 
 
CASH AND CASH EQUIVALENTS AT END OF PERIOD    $  1,076,947    $  23,545 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION         
 
Cash paid during the period for:             
     Interest expenses    $  26,491    $  4,486 
 
Cash paid during the period for:             
     Income taxes    $  227,487    $  252,040 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

7

 


Table of Contents

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

NOTE 1.

ORGANIZATION AND BASIS OF PRESENTATION

 

Ever-Glory International Group, Inc. (“EGLY”) was incorporated in Florida on October 19, 1994.

 

Perfect Dream Limited (“Perfect Dream”) was incorporated in the British Virgin Islands on July 1, 2004. Goldenway Nanjing Garments Company Limited (“Goldenway”), a People’s Republic of China (“PRC”) limited liability company was incorporated on December 31, 1993. Goldenway is principally engaged in the manufacturing and sale of garments.

 

During 2004, Perfect Dream acquired 100% of Goldenway for a cash consideration of $1,338,404. The transaction was accounted for as a reorganization of entities under common control as the companies were beneficially owned by principally identical stockholders and shared common management.

 

On July 29, 2005, EGLY entered into an Agreement and Plan of Reorganization with the stockholders of Perfect Dream whereby the stockholders of Perfect Dream exchanged 100% of their shares of Perfect Dream for 7,673,325 shares of restricted common stock of EGLY.

 

On completion of the reorganization, the merger of EGLY and Perfect Dream was treated for accounting purposes as a capital transaction and recapitalization by Perfect Dream (“the accounting acquirer”) and reorganization by EGLY (“the accounting acquiree”). The financial statements have been prepared as if the reorganization had occurred retroactively.

 

Accordingly, the financial statements include the following:

 

 

(1)

      The balance sheet consists of the net assets of the acquirer at historical cost and the net assets of the acquiree at historical cost.

 

 

(2)

      The statement of operations includes the operations of the acquirer for the periods presented and the operations of the acquiree from the date of the merger.

 

EGLY, Perfect Dream and Goldenway are hereinafter referred to as (“the Company”).

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

 

In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments consisting only of normal recurring accruals considered necessary to present fairly the Company’s financial position at September 30, 2006, the results of operations for the three-month and nine-month periods ended September 30, 2006 and 2005, and cash flows for the nine months ended September 30, 2006 and 2005. The results for the period ended September 30, 2006 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2006.

 

NOTE 2.

PRINCIPLES OF CONSOLIDATION

 

The accompanying September 30, 2006 unaudited condensed consolidated financial statements include the accounts of EGLY, its 100% owned subsidiary Perfect Dream and its 100% owned subsidiary Goldenway. All significant inter-company balances and transactions have been eliminated in consolidation.

 

8

 


Table of Contents

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

NOTE 3.

USE OF ESTIMATES

 

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

NOTE 4.

CASH AND CASH EQUIVALENTS

 

For purpose of the unaudited condensed consolidated statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than 3 months.

 

NOTE 5.

FAIR VALUE OF FINANCIAL INSTRUMENTS

 

Statement of Financial Accounting Standards No. 107, “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. Trade accounts receivable, accounts payable, and accrued liabilities are reflected in the financial statements at fair value because of the short-term maturity of the instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values.

 

The carrying value of cash and cash equivalents, accounts receivable (trade and others), accounts payable (trade and related party) and accrued liabilities approximate their fair value because of the short-term nature of these instruments. The Company places its cash and cash equivalents with what it believes to be high credit quality financial institutions. The Company has a diversified customer base, most of which are in Europe, Japan, the United States and the PRC. The Company controls credit risk related to accounts receivable through credit approvals, credit limit and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

 

The Company’s major operation is in the PRC, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the United States dollars (“US$”) and the Chinese Renminbi (“RMB”). On July 21, 2005, the PRC let the RMB fluctuate thereby ending its decade-old valuation peg to the US$. The new RMB rate reflects an approximately 2% increase in value against the US$. Historically, the PRC government has benchmarked the RMB exchange ratio against the US$, thereby mitigating the associated foreign currency exchange rate fluctuation risk. The Company does not believe that its foreign currency exchange rate fluctuation risk is significant, especially if the PRC government continues to benchmark the RMB against the US$.

 

NOTE 6.

REVENUE AND COST RECOGNITION

 

The Company recognizes revenue upon delivery for local sales and upon shipment of the products for export sales, at which time title passes to the customer provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed and determinable; and collectability is deemed probable.


Transportation and unloading charges and product inspection charges are included in selling expenses.


Cost of goods sold includes the appropriate materials purchasing, receiving and inspection costs, inbound freight where applicable, direct labor cost and manufacturing overheads consistent with the revenue earned.

 

 

9

 


Table of Contents 

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

NOTE 7.

FOREIGN CURRENCY TRANSACTIONS

 

EGLY, Perfect Dream and Goldenway maintain their accounting records in their functional currencies of US$, US$ and RMB respectively.

 

Foreign currency transactions during the year are translated to the functional currency at the approximate rates of exchange on the dates of transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the approximate rates of exchange at that date. No-monetary assets and liabilities are translated at the rates of exchange prevailing at the time the asset or liability was acquired. Exchange gains or losses are recorded in the statement of operations.

 

NOTE 8.

FOREIGN CURRENCY TRANSLATION

 

The financial statements of Goldenway (whose functional currency is the RMB) are translated into US$ using the closing rate method. The balance sheet items are translated into US$ using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity. Translation gain for the periods ended September 30, 2006 and 2005 were $238,060 and $21,415 respectively.

 

NOTE 9.

COMPREHENSIVE INCOME

 

The foreign currency translation gain or loss resulting from translation of the financial statements  expressed in RMB to United States Dollar is reported as other comprehensive income in the statements of operations and stockholders’ equity.

 

NOTE 10.

RECLASSIFICATION

 

 

Certain 2005 balances in the Statement of Operation have been reclassified to confirm with 2006 presentation.

 

NOTE 11.

INCOME PER SHARE

 

Basic earnings per share are computed by dividing income available to common stockholders by the weighted average number common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

 

NOTE 12.

SEGMENTS

 

The Company adopted Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information (“SFAS 131”). SFAS establishes standards for operating information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. SFAS 131 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decision how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company’s principal operating segments. The Company operates in a single segment.

 

 

10

 


Table of Contents

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

NOTE 13.

 NET INCOME PER SHARE

 

                       The following is net income per share information at September 30:      
    2006      2005 
         
                       Net income  1,354,905    521,913 
           
                       Basic weighted-average common stock outstanding    19,971,758      8,083,270 
                       Effect of dilutive securities           
                               Series A Convertible Preferred Stock    59,914,988          - 
                       Diluted weighted-average common stock outstanding    79,886,746      8,083,270 
           
                       Net income per share - basic  0.07    0.06 
           
                       Net income per share - diluted  0.02    0.06 


 

NOTE 14.

 STOCKHOLDERS’ EQUITY

 

 

(A)

Series A Convertible Preferred stock

 

The Company authorized 10,000 shares of Series A Convertible Preferred Stock, with a par value of $0.0001 per share.

 

Each share of the Series A Convertible Preferred Stock had upon issuance the same voting, dividend and liquidation rights as 1,000 shares of common stock and will convert back into common stock at such time as the Company is able to increase the number of authorized shares of common stock. Effective November 8, 2005, the Company effected a 7.6-for-1 forward stock split on the remaining outstanding 2,627,861 shares, which increased the number of outstanding shares to 19,971,743 shares. Under the adjustment provisions of the Series A Convertible Preferred Stock, the conversion, voting, dividend and liquidation ratios of the Series A Convertible Preferred Stock were all increased by the forward stock split from 1,000 for one to 7,600 for one (a total of 59,914,988 shares of common stock fully converted). The Series A Convertible Preferred Stock will be converted back into common stock at such time as the number of shares of authorized common stock is increased to 100,000,000 or more via a proposed amendment to the Articles of Incorporation. The relative voting and equity ownership of the Company’s stockholders was unchanged by the exchange for Series A Convertible Preferred Stock and the forward stock split. If all the Series A Convertible Preferred Stock were converted as of September 30, 2006, there would be 79,886,746 outstanding shares of common stock.

 

 

(B)

Appropriated retained earnings

 

The Company is required to make appropriations to reserves funds, comprising the statutory surplus reserve, statutory public welfare fund and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the People’s Republic of China (the “PRC GAAP”). Appropriation to the statutory surplus reserve should be at least 10% of the after tax net income determined in accordance with the PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors.

 

11

 


Table of Contents

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

NOTE 15.

  RELATED PARTY TRANSACTIONS

 

During the nine months ended September 30, 2006 and 2005, the Company sub-contracted certain manufacturing work valued at $2,619,464 and 1,687,246, respectively to certain of its related companies. The Company provided the raw materials to the sub-contractor who charged the Company a fixed labor charge for the sub-contracting work.

 

During the nine months ended September 30, 2006 and 2005, the Company purchased raw materials of $89,017 and $Nil, respectively from certain related companies.

 

As of September 30, 2006, the Company owed $110,046 to related companies for sub-contracting work done and raw materials purchased.

 

During the nine months ended September 30, 2006 and 2005, the Company sold products and provided sub-contracting services totaling $66,192 and 512,401, respectively to certain related companies.

 

A related company provides treasury services to the Company free of service charges by negotiating all of the Company’s letters of credit and receiving proceeds thereon and paying creditors for purchases made by the Company.

 

As of September 30, 2006, the Company owed a related company $3,574,891 for advances made. Interest charged on these advance was 6% per annum. During 2006, the Company paid interest of $91,183 to a related company.

 

During 2006, the Company received rental income of $14,063 for the lease of factory space to a related company.

 

NOTE 16.

  COMMITMENTS

 

 

(A)

Employee Benefits

 

The full time employees of the Company are entitled to employee benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a Chinese government mandated multi-employer defined contribution plan. The Company is required to accrue for those benefits based on certain percentages of the employees’ salaries and make contributions to the plans out of the amount accrued for medical and pension benefits. The Chinese government is responsible for the medical benefits and the pension liability to be paid to these employees.

 

 

(B)

Commitments

 

According to the Articles of Association of Goldenway, Goldenway has to fulfill registered capital requirements of $17,487,894 within three years from February 2, 2005. As of September 30, 2006, the Company has fulfilled $2,630,000 of its registered capital requirements and has a registered capital commitment of $14,857,894, which is payable by February 1, 2008.

 

At September 30, 2006, the Company had commitments for capital projects in progress of approximately $2,510,000.

 

12

 


Table of Contents

EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

NOTE 17.

 CONTINGENCIES


The Company accounts for loss contingencies in accordance with SFAS 5 “Accounting for Loss Contingencies”, and other related guidance. Set forth below is a description of certain loss contingencies as of September 30, 2006 and management’s opinion as to the likelihood of loss in respect of each loss contingency.

On April 17, 2006, Mark B. Aronson filed a Complaint against the Company in the United States Court of common pleas of Allegheny County Pennsylvania. The action alleges that Company violated the Pennsylvania Unsolicited Telecommunication Advertisement Act to spam emails to plaintiff to purchase its shares of common stock. The action seeks an award of damages in excess of $12,100. The Company denies that it was a party to such email spamming activities and intends to vigorously defend its legal position.

In September 2006, the Company filed responses to plaintiff's interrogatories with the court of common pleas of Allegheny County in Pennsylvania to vigorously defend Mr. Aronson's accusation that the company has used faxes to promote its stock.

Accordingly, no provision has been made to the above claim as of September 30, 2006.

 

NOTE 18.

  CONCENTRATIONS AND RISKS

 
  During 2006, 100% of the Company’s assets are located in China.

 

 The Company principally relied on four customers for its revenue during 2006 and on two customers  for its revenue during 2005, details of which are as follows:

   

Customer A 

 

Customer B

 

Customer C 

 

Customer D 

During                 
2006                       24%                       20%                     16%                     12% 
2005                       24%                       16%         


 At of September 30, 2006, accounts receivable to those customers totaled $294,939.

The Company relied on one supplier for`17% and 38% respectively for its raw materials during 2006 and 2005.

 

The following is geographic information of the Company’s revenue earned for the period ended   September 30:

      2006      2005 
 
  Europe  $  11,253,387    $  3,389,643 
  United States    3,912,712      1,214,979 
  Japan    937,919      1,550,232 
  The People Republic of China    940,378      725,516 
  Others    484,743      -     
    $  17,529,139    $  6,880,370 


 

13

 


Table of Contents

 EVER-GLORY INTERNATIONAL GROUP, INC.

AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2006 (UNAUDITED)

 

 

NOTE 19.

  SUBSEQUENT EVENT

 

On June 26, 2006, The Company’s wholly owned subsidiary, Perfect Dream entered into an Agreement for the purchase and sale of stock (the “Agreement”) with Ever-Glory Enterprises (HK) Limited (“Seller”) and Nanjing Catch-Luck Garments Co, Limited (“Catch-Luck”) for the sale of all of Seller’s ownership interest in Catch-Luck to Perfect Dream (the “Transaction”). Pursuant to the terms of the Agreement, Perfect Dream will pay to the Seller an amount of $600,000 in cash and common stock of Ever-Glory International Group Inc. equivalent to $9,400,000 on the date of the transfer within 90 days of the closing of the transaction.

 

On August 31, 2006, Perfect Dream entered into an amendment to the Agreement (“the Amendment”) whereupon the terms of payment on the purchase consideration was amended as follows:

 

 

1.

Perfect Dream will pay to the Seller an amount of $600,000 in cash and common stock of Ever-Glory equivalent to $3,400,000 on the date of the transfer within 90 days of the closing of the transaction. The number of shares of common stock to be issued to the Seller in satisfaction of the Stock Purchase Price shall be calculated based on the preceding 30 day-average high and low price for the Company’s common stock as quoted on the Over-the-Counter Bulletin Board as of the date of the closing;

 

 

2.

At the end of the first full fiscal year ending December 31, 2006 in which the Company generates gross revenues of at least $19,000,000 and net profit of at least $1,500,000, Perfect Dream will pay to Seller that number of shares of Ever-Glory’s common stock having an aggregate fair market value of $3,000,000; and

 

  3.

At the end of the second full fiscal year ending December 31, 2007 in which Catch-Luck generates gross revenues of at least $19,000,000 and net profit of $1,500,000, Perfect Dream will issue to the Seller that number of shares of Ever-Glory's common stock having an aggregate fair market value of $3,000,000.

 

The Transaction is expected to close in the fourth quarter.

 

14

 


Table of Contents

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

Overview

 

Ever-Glory and its subsidiaries (the “Company”) manufacture apparel for men, women and children for primarily middle to high-grade well-known casual wear, outerwear and sportswear brands and for a variety of companies. Most of our products are exported to Japan, the United Kingdom, Germany, Denmark, France and the United States. The Company’s customers include large retailers and well-known brands. The Company was formed as a result of a merger of Andean Development Corporation, a corporation organized under the laws of the State of Florida (“Andean”); and Perfect Dream Limited, a corporation organized under the laws of British Virgin Islands (“Perfect Dream”). Andean was formed on October 19, 1994 and engaged in the business of providing engineering and project management services and electrical and mechanical equipment for energy and private works projects. As of September 30, 2005, Andean had zero assets and liabilities of $57,000. Perfect Dream was incorporated on July 1, 2004 in the British Virgin Islands. In December of 2004, Perfect Dream acquired 100% of Goldenway Nanjing Garments Co., Ltd (“Goldenway”).

 

Goldenway is a limited liability company, which was incorporated in the People’s Republic of China (the “PRC”) on December 31, 1993. Until December 2004, Goldenway was a subsidiary of Jiangsu Ever-Glory International Group Corporation ("Jiangsu Ever-Glory"). After its acquisition by Perfect Dream, Goldenway changed its status to that of a wholly foreign owned enterprise and increased its registered capital from $2,512,106 to $20,000,000. The increased registered capital will be paid-in in installments within three years of the issuance of Goldenway’s updated business license. As of September 30, 2006, the Company has paid $2.63million of its registered capital requirements. The remaining $14.86 million is due on February 1, 2008.

 

In the nine months ended September 30, 2006, approximately 64% of the Company’s revenues came from customers in Europe, 22% from customers in the United States, 5% from customers in Japan, 5% from customers in China, 3% from customers in other countries. In the nine months ended September 30, 2006, four customers represented approximately 72% of the Company’s sales. Management believes that the relationship with these customers is good.

 

The Company purchases the majority of its raw materials directly from numerous local fabric and accessories suppliers. The Company may also purchase finished goods from other contract manufacturers. One supplier represented approximately 17 % of the Company’s raw materials purchases in the nine months ended September 30, 2006. The Company has not experienced difficulty in obtaining raw materials essential to its business and management believes that the relationship with its suppliers is good.

 

The Company currently operates one factory in the Nanjing Jiangning Economic and Technological Development Zone of mainland, China. The factory covers an area of 10,000 square meters and is equipped with highly advanced, state-of-the-art equipment. The factory employs a staff of over 400 people with an annual production capacity of over 700,000 pieces. All of the Company’s work force is non-union, and the Company considers its relations with its employees to be satisfactory.

 

The Company has put a deposit on 112,442 square meters of land in Nanjing Jiangning Economic and Technological Development Zone, which includes an existing facility of 26,629 square meters, which includes manufacturing and office space. On April 7, 2006, the Company completed the purchase procedures with the local government of Nanjing City. On June 24, 2006, the Company obtained the title to the land for the land use rights for 50 years. The Company expects the new manufacturing facility to be in full production by the end of March 2007 which will replace the Company’s current manufacturing facility.

 

In 2006, all Chinese manufacturers of certain garments were subject to aggregate export quotas, or limitations, to the United States and Europe. Although certain of the Company’s apparel products fall within the categories subject to the quotas with respect to exports to the United States and Europe, the Chinese government allocated a portion of the aggregate export quota to the Company based upon the amount of product that the Company exported in the prior year. The imposition of such quotas did not have a material affect on the Company’s net sales, although it did impact its net margin. See Results of Operations below. As a result of the Company’s prior export performance, it was awarded a sufficient portion of the export quotas to enable it to increase its sales to customers in Europe and the U.S. despite the reinstitution of export quotas. In order to increase the Company’s

 

15

 


Table of Contents

 

allocation of future export quotas, however, the Company accepted more orders for lower margin products, which had an adverse affect on the Company’s gross margins. The Company believes that its customer mix and its ability to adjust the types of apparel it manufactures will mitigate its exposure to such trade restrictions in the future.

 

Under the laws of the PRC, as a wholly foreign owned enterprise, in the fiscal year ended December 31, 2004, Goldenway was entitled to a 50% reduction in its income tax rate, from 24% to 12%. In the fiscal year ended December 31, 2005, Goldenway as a wholly foreign owned enterprise that exported over 70% of its products outside the PRC, is eligible for a 50% reduction in its tax rate from 24% to 12%. From 2006, Goldenway has an income tax rate of 12%.

 

The Company markets and sells its products through a combination of international distributors and direct sales primarily in Europe, the United States and in Japan.

 

Our cost of net revenues consists of the appropriate materials purchasing, receiving and inspection costs, inbound freight where applicable, garment finishing fees, direct labor, and manufacturing overhead, including the Company’s contributions to a government mandated multi-employer defined contribution plan, packing materials and others. In addition, from time to time we subcontract manufacturing, which costs are included in our cost of net revenues.

 

Selling expenses consist primarily of transportation, unloading charges and product inspection charges.

 

General and administrative expenses consist primarily of salaries and related expenses for executive, finance, accounting, facilities and human resources personnel, office expenses and professional fees.

 

Results of Operations

 

Three Months Ended September 30, 2006 Compared To Three Months Ended September 30, 2005

 

Revenues, Cost of Revenues and Gross Margin

 

Revenues for the quarter ended September 30, 2006 were $6,120,264, an increase of 51 % from $4,060,499 for same quarter in 2005. Our increase in revenues was primarily attributable to an overall increase in sales to customers in Europe and the U.S. As of September 30, 2006, sales to customers in Europe increased by $2,947,809 or 154%, sales to customers in the U.S. increased by $47,681 or 6% as compared to 2005.

 

Cost of revenues for the quarter ended September 30, 2006 was $4,896,620, an increase of $1,462,805 from $3,433,815 for the quarter ended September 30, 2005. Cost of revenues primarily consisted of the purchase cost of materials, receiving and inspection costs, inbound freight, direct labor cost and manufacturing overheads. As a percentage of revenues, cost of revenues decreased to approximately 80% for the three months ended September 30, 2006 from approximately 85% for the quarter ended September 30, 2005. Consequently, gross margin as a percentage of revenues increased to approximately 20% for the three months ended September 30, 2006 from approximately 15% for the three months ended September 30, 2005. The decrease in costs of revenues in a percentage of revenues and the increase of gross margin were primarily attributable to a 2.58% decrease in the purchase cost of materials and a 1.28% decrease in direct labor cost.

 

Selling, General and Administrative Expenses

 

Selling expenses as of September 30, 2006 increased by 404% from $23,470 in 2005 to $118,435 in 2006. The increase in selling expenses was mainly attributable to an increase in transportation and logistic costs as well as the product inspection charges.

 

Export quota charges as of September 30, 2006 and 2005 were $4,984 and $ nil respectively. The increase of the export quota charges was due to the reinstallment of the export quotas on hot categories to EU and United States.

 

General and Administrative expenses totaled $257,815 for the three months ended September 30, 2006, an increase of $182,230 from $75,585 for the three months ended September 30, 2005. The increase was attributable to the expansion of our business which required additional costs such as administrative and management salaries.

 

16

 


Table of Contents

 

Legal and Professional fees associated with our trading activities on the OTCBB market totaled $79,105 for the three months ended September 30, 2006, an decrease of $1,690 from $80,795 for the three months ended September 30, 2005. The decrease was mainly due to the decrease in stock issued for services.

 

Income before taxes for the three months ended September 30, 2006 was $691,071, an increase of $148,825 from $542,246 for the three months ended September 30, 2005 which was due largely to the increase of our net sales.

 

Nine months Ended September 30, 2006 Compared To Nine months Ended September 30, 2005

 

Revenues, Cost of Revenues and Gross Margin

 

Revenues for the nine months ended September 30, 2006 were $ 17,529,139, an increase of 155% from $6,880,370 for same period in 2005. Our increase in revenues was primarily attributable to an overall increase in sales to our major customers in Europe, U.S. and China. For the nine months ended September 30, 2006, sales to customers in Europe increased by $7,863,744 or 232 %, sales to customers in the U.S. increased by $ 2,697,733 or 222 %, sales to customers in China increased by $214,862 or 30 % as compared to the same period in 2005.

 

Cost of revenues for the nine months ended September 30, 2006 was $14,399,072 as compared to cost of revenues of $5,703,150 for the same period in 2005, an increase of $8,695,922. As a percentage of revenues, cost of revenues decreased slightly to approximately 82% for the nine months ended September 30, 2006 from approximately 83% for the same period in September 30, 2005. Consequently, gross margin as a percentage of revenues increased slightly to approximately 18% for the nine months ended September 30, 2006 from approximately 17% for the nine months ended September 30, 2005. The decrease in costs of sales as a percentage of revenues and the increase of gross margin were primarily attributable to the decrease in the purchase cost of material and direct labor cost.

 

Selling, General and Administrative Expenses

 

Selling expenses for the nine months ended September 30, 2006 was $231,278 as compared to selling expenses of $56,935 for the same period in 2005, an increase of $174,343, or 306 %. The increase in selling expenses was mainly attributable to an increase in transportation and logistic costs as well as the product inspection charges.

 

Export quota charges for the nine months ended September 30, 2006 and 2005 were $151,458 and $nil respectively. The increase of the export quota charges was due to the reinstallment of the export quotas on hot categories to EU and United States.

 

General and Administrative expenses totaled $580,949 for the nine months ended September 30, 2006, an increase of $415,075 from $165,874 for the nine months ended September 30, 2005. The increase was attributable to the expansion of our business which required additional costs such as administrative and management salaries.

 

Legal and Professional fees associated with our trading activities on the OTCBB market totaled $425,625 for the nine months ended September 30, 2006, an increase of $132,330 from $293,295 for the nine months ended September 30, 2005. The increase was mainly associated with the fees paid for investor relations, public relations and legal services.

 

Income before taxes for the nine months ended September 30, 2006 was $1,610,788, an increase of $866,268 from $744,520 for the nine months ended September 30, 2005. The increase was mainly attributable to the increase of our net sales.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of September 30, 2006, the Company had cash and cash equivalents of $1,076,947, other current assets of $820,639 and current liabilities of $4,549,166. To date, the Company has financed its operations primarily from operations and cash flow from operations is expected to continue to be the Company’s primary source of funds to finance its short-term cash needs.

 

Net cash provided by operating activities as of September 30, 2006 was $735,837, compared with $(124,696) for the same period in 2005. The Company’s primary source of operating cash flow was our net income. The

 

17

 


Table of Contents

 

increase in our net cash was mainly attributable to a significant increase in our net income of $832,992 for the nine months ended September 30, 2006 from the same period in 2005.

 

Net cash used in investing activities was approximately $4,156,750 as of September 30, 2006, compared with $650,309 for the same period in 2005. The increase was primarily attributable to construction costs of approximately $4 million associated with our new office building and factory.

 

Net cash provided by financing activities as of September 30, 2006 was $2,963,644, compared with same period in 2005 of $616,523. The increase was attributable to advances from a related company.

 

Capital Commitments

 

The Company has a continuing program for the purpose of improving its manufacturing quality. As of September 30, 2006, the Company had commitments for capital projects in progress of approximately $2.5 million. While pursuant to the Articles of Association of Goldenway, registered capital of approximately $17.49 million must be paid into Goldenway by February 1, 2008. The increased registered capital will be paid-in in installments within three years of the issuance of Goldenway’s updated business license. As of September 30, 2006, the Company has paid $2.63 million of its registered capital requirements. The remaining $14.86 million is due on February 1, 2008.

 

The Company has put a deposit on 112,442.3 square meters of land in Nanjing Jiangning Economic and Technological Development Zone, which includes an existing manufacturing facility of 26,629 square meters. On April 7, 2006, the Company completed the purchase procedures with the local government of Nanjing City. On June 24, 2006, the company was given title to the land for the land use rights of 50 years. The Company expects the new manufacturing facility to be in production by the end of March 2007, which will replace the Company’s current manufacturing facility. The Company expects to invest approximately $7 million by the first quarter of 2007 for improvements to this new facility, which the Company’s expects to fund from cash from operations.

 

Uses of Liquidity

 

The Company’s cash requirements as of September 30, 2006 are primarily to fund operations and to complete the construction of its new manufacturing facility in Nanjing. The Company also plans to acquire additional manufacturing capacity in the future to strengthen and stabilize its manufacturing base. The Company is also looking to establish its own distribution and logistics channels in overseas markets and to launch its own brand directly to the Chinese market. In addition, the Company will need to make the required capital contributions to its subsidiary, Goldenway.

 

On August 23, 2005, the Company’s subsidiary, Goldenway Nanjing Garments Company Limited, entered into a short-term loan agreement with Shanghai Pudong Development Bank Nanjing Branch pursuant to which we borrowed approximately $625,000 at an interest rate of 6.138% per annum calculated on the adjusted exchange rate of 8 compared to the 8.18 in 2005. The loan matures on August 23, 2006. The funds were used for the purchase of raw materials. On August 23, 2006, the loan was paid off to the bank by the Company.

 

Sources of Liquidity

 

The Company’s primary source of liquidity for its short-term cash needs is expected to be cash flow generated from operations, and cash and cash equivalents currently on hand. The Company believes that will be able to borrow additional funds if needed.

 

The Company believes its cash flow from operations together with its cash and cash equivalents currently on hand will be sufficient to meet its working capital, capital expenditure and other commitments through December 2006. For its long-term cash needs, the Company is currently considering a number of different financing opportunities including debt and equity financing. Adequate funds may not be available on terms acceptable to it. If additional funds are raised through the issuance of equity securities, dilution to existing stockholders may result. However, the Company does not believe that failure to obtain any such financing will have a material adverse effect on its financial position, results of operations and cash flows. If funding is insufficient at any time in the future, the Company may be unable to accelerate its business expansion and growth on a faster and higher standard.

 

18

 


Table of Contents

 

As of September 30, 2006, the Company’s subsidiary, Goldenway, had no outstanding borrowings in the bank.

 

Foreign Currency Translation Risk.

 

The Company’s major operations are in the PRC, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the United States dollar and the Chinese Renminbi. Sales of the Company’s products are in dollars. During 2003 and 2004 the exchange rate of RMB to the dollar remained constant at 8.26 RMB to the dollar. On July 21, 2005, the Chinese government adjusted the exchange rate from 8.26 to 8.09 RMB to the dollar. As a result, orders received prior to the adjustment were at prices based on the prior exchange rate, which negatively impacted our gross margins for the year ended December 31, 2005. We now negotiate price adjustments with most of our customers, which we believe will reduce our exposure to exchange rate fluctuations in the future. However, if in the future the Chinese government should decide to adjust the RMB to dollar exchange rate unexpectedly, our gross margins and results of operations and cash flows could be adversely affected.

 

The financial statements of Goldenway (whose functional currency is the RMB) are translated into U.S. Dollars using the closing rate method. The balance sheet items are translated into U.S. Dollars using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the year. All exchange differences are recorded within equity. Translation gain for the periods ended September 30, 2006 and 2005 were $238,060 and $21,415 respectively.

 

RISK FACTORS

 

Our business is subject to certain risks, and we want you to review these risks while you are evaluating our business and our historical results. Please keep in mind that any of the following risks discussed below and elsewhere in this Quarterly Report could materially and adversely affect us, our operating results, our financial condition and our projections and beliefs as to our future performance. As such, our results could differ materially from those projected in our forward-looking statements.

 

Risks Relating to the Industry in Which We Compete.

 

Our sales are influenced by general economic cycles.

 

Apparel is a cyclical industry that is dependent upon the overall level of consumer spending. Our customers anticipate and respond to adverse changes in economic conditions and uncertainty by reducing inventories and canceling orders. As a result, any substantial deterioration in general economic conditions, increases in energy costs or interest rates, acts of war, acts of nature or terrorist or political events that diminish consumer spending and confidence in any of the regions in which we compete, could reduce our sales and adversely affect our business and financial condition.

 

Intense competition in the worldwide apparel industry could reduce our sales and prices.

 

We face a variety of competitive challenges from other apparel manufacturers both in China and elsewhere. Some of these competitors have greater financial and marketing resources than we do and may be able to adapt to changes in consumer preferences or retail requirements more quickly, devote greater resources to the marketing and sale of their products or adopt more aggressive pricing policies than we can. As a result, we may not be able to compete successfully with them.

 

The success of our business depends upon our ability to offer innovative and upgraded products at attractive price points.

 

The worldwide apparel industry is characterized by constant product innovation due to changing consumer preferences and by the rapid replication of new products by competitors. As a result, our success depends in large part on our ability to continuously and rapidly respond to customer requirements for innovative and stylish products at a competitive pace, intensity, and price. Failure on our part to regularly and rapidly

 

19

 


Table of Contents

 

respond to customer requirements could adversely affect our ability to retain our existing customers or to acquire new customers which would limit our sales growth.

 

The worldwide apparel industry is subject to ongoing pricing pressure.

 

The apparel market is characterized by low barriers to entry for both suppliers and marketers, global sourcing through suppliers located throughout the world, trade liberalization, continuing movement of product sourcing to lower cost countries, ongoing emergence of new competitors with widely varying strategies and resources, and an increasing focus on apparel in the mass merchant channel of distribution. These factors contribute to ongoing pricing pressure throughout the supply chain. This pressure has and may continue to:

 

 

require us to reduce wholesale prices on existing products;

 

result in reduced gross margins across our product lines;

 

increase pressure on us to further reduce our production costs and our operating expenses.

 

Any of these factors could adversely affect our business and financial condition.

 

Increases in the price of raw materials or their reduced availability could increase our cost of goods and decrease our profitability.

 

We purchase raw materials directly from local fabric and accessory suppliers. The Company may also import specialty fabrics to meet specific customer requirements. The Company also purchases finished goods from other contract manufacturers. The prices we charge for our products are dependent in part on the market price for raw materials used to produce them. The price and availability of our raw materials may fluctuate substantially, depending on a variety of factors, including demand, crop yields, weather, supply conditions, transportation costs, government regulation, economic climates and other unpredictable factors. Any raw material price increases could increase our cost of goods and decrease our profitability unless we are able to pass higher prices on to our customers.

 

One supplier represented approximately 17% of the Company’s raw materials purchases in the nine months ended September 30, 2006, two suppliers represented approximately 12% and 10%, respectively of the Company’s raw materials purchases in the fiscal year ended December 31, 2005, and one supplier represented approximately 17% of the Company’s raw materials purchases in the fiscal year ended December 31, 2004. We do not have long-term written agreements with any of these suppliers and do not anticipate entering into any such agreements in the near future. However, we always execute a written agreement for each order placed with our suppliers. We do not believe that loss on any of these suppliers would have a material adverse affect on our ability to obtain finished goods or raw materials essential to its business because we believe that we can locate other suppliers in a timely manner.

 

Risks Relating to Our Business

 

We depend on a group of key customers for a significant portion of our sales. A significant adverse change in a customer relationship or in a customer’s performance or financial position could harm our business and financial condition.

 

In the nine months ended September 30, 2006, four customers represented approximately 72% of the Company’s sales. Net sales to our ten largest customers totaled approximately 81% and 74% of total net sales in 2005 and 2004, respectively. Our largest customer accounted for approximately 22% and 12% of net sales in 2005 and 2004. The garment manufacturing industry has experienced substantial consolidation in recent years, which has resulted in increased customer leverage over suppliers, greater exposure for suppliers to credit risk and an increased emphasis by customers on inventory management and productivity.

 

A decision by a major customer, whether motivated by competitive considerations, strategic shifts, financial requirements or difficulties, economic conditions or otherwise, to decrease its purchases from us or to change its manner of doing business with us, could adversely affect our business and financial condition. In addition, while we have long-standing customer relationships, we do not have long term contracts with any of our customers.

 

20

 


Table of Contents

 

As a result, purchases generally occur on an order-by-order basis, and the relationship, as well as particular orders, can generally be terminated by either party at any time. We do not believe that there is a material risk of loss of any of these customers during the next 12 months. We also believe that the unexpected loss of these four customers could have material adverse effect on the Company’s earnings or financial condition. While we believe that we could replace these three customers within 12 months, the loss of which will not have material adverse effects on our financial condition in a long run. None of the Company or its affiliates are officers, directors or material shareholders of any of these three customers.

 

We will be required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act.

 

Failure to timely comply with the requirements of Section 404 or any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on the trading price of our debt securities.

 

We are not currently an “accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended. Beginning with our Annual Report for the year ending December 31, 2007, Section 404 of the Sarbanes-Oxley Act of 2002 will require us to include an internal control report with our Annual Report on Form 10-KSB. That report must include management’s assessment of the effectiveness of our internal control over financial reporting as of the end of the fiscal year. This report must also include disclosure of any material weaknesses in internal control over financial reporting that we have identified. Additionally, our independent registered public accounting firm will be required to issue reports on management’s assessment of our internal control over financial reporting and their evaluation of the operating effectiveness of our internal control over financial reporting. Our assessment requires us to make subjective judgments and our independent registered public accounting firm may not agree with our assessment.

 

Achieving compliance with Section 404 within the prescribed period may require us to incur significant costs and expend significant time and management resources. We cannot assure you that we will be able to complete the work necessary for our management to issue its management report in a timely manner, or that we will be able to complete any work required for our management to be able to conclude that our internal control over financial reporting is operating effectively. If we are not able to complete the assessment under Section 404 in a timely manner, we and our independent registered public accounting firm would be unable to conclude that our internal control over financial reporting is effective as of December 31, 2007. As a result, investors could lose confidence in our reported financial information, which could have an adverse effect on the trading price of our debt securities. In addition, our independent registered public accounting firm may not agree with our management’s assessment or conclude that our internal control over financial reporting is operating effectively. We expect to consistently improve our internal control over the financial reporting with our best efforts and with the assistance from outside experts.

 

As the Company is listed on the over-the-counter bulletin board, the Company is subject to less stringent corporate governance requirements than a company listed on a national exchange. Specifically, the Company is not required to have a majority of independent directors or a separate audit committee. This provides less protection to our investors.

 

The Company’s board of directors currently does not have a separate audit committee or a member that qualifies as an audit committee financial expert or an independent director. The Company’s management and board of directors are considering the addition of an independent director who qualified as a financial expert but there can be no assurance the Company will be able to attract one or more qualified independent directors or that any such directors can be added to the Company’s board as it may require us to increase the number of director on the Company’s board of directors, seek the resignation of directors who are not independent, or some combination thereof. If the Company is unable to attract qualified independent directors or nominate or elect such directors, the Company’s security holders will not have the protections provided by having independent directors or audit committee members. Although we believe that all actions taken by our directors on our behalf will be in our best interests, whether or not they are deemed to be independent, we cannot assure you that this will actually be the case. If actions are taken, or expenses are incurred that are not in our best interests, it could have a material adverse effect on our business and operations and the price of our stock held by our stockholders.

 

21

 


Table of Contents

 

We must successfully maintain and/or upgrade our information technology systems.

 

We rely on various information technology systems to manage our operations and we regularly evaluate these systems against our current and expected requirements. Although we have no current plans to implement modifications or upgrades to our systems, we will eventually be required to make changes to legacy systems and acquiring new systems with new functionality.. We do anticipate that the aggregate cost of updating such systems will be approximately USD 600,000 over the next 36 months. We will also continue to self-develop and update our information systems on a timely basis to meet our business expansion needs Any information technology system disruptions, if not anticipated and appropriately mitigated, could have an adverse effect on our business and operations.

 

We may engage in future acquisitions and strategic investments that dilute the ownership percentage of our shareholders and require the use of cash, incur debt or assume contingent liabilities.

 

As part of our business strategy, we expect to continue to review opportunities to buy or invest in other businesses or technologies that we believe would enhance our manufacturing capabilities, or that may otherwise offer growth opportunities. If we buy or invest in other businesses in the future, we could: require the use of cash, incur debt or assume contingent liabilities.

 

As part of our business strategy, we expect to continue to review opportunities to buy or invest in other businesses or technologies that we believe would complement our current products, expand the breadth of our markets or enhance our technical capabilities, or that may otherwise offer growth opportunities. If we buy or invest in other businesses, products or technologies in the future, we could:

 

 

incur significant unplanned expenses and personnel costs;

 

issue stock that would dilute our current shareholders’ percentage ownership;

 

use cash, which may result in a reduction of our liquidity;

 

incur debt;

 

assume liabilities; and

 

spend resources on unconsummated transactions.

 

We may not realize the anticipated benefits of past or future acquisitions and strategic investments, and integration of acquisitions may disrupt our business and management.

 

We may in the future acquire or make strategic investments in additional companies. We may not realize the anticipated benefits of these or any other acquisitions or strategic investments, which involve numerous risks, including:

 

 

problems integrating the purchased operations, technologies, personnel or products over geographically disparate locations;

 

unanticipated costs, litigation and other contingent liabilities;

 

diversion of management’s attention from our core business;

 

adverse effects on existing business relationships with suppliers and customers;

 

incurrence of acquisition-related costs or amortization costs for acquired intangible assets that could impact our operating results;

 

22

 


Table of Contents

 

 

inability to retain key customers, distributors, vendors and other business partners of the acquired business; and

 

potential loss of our key employees or the key employees of an acquired organization.

 

If we are not be able to successfully integrate businesses, products, technologies or personnel that we acquire, or to realize expected benefits of our acquisitions or strategic investments, our business and financial results may be adversely affected.

 

International political instability and concerns about other international crises may increase our cost of doing business and disrupt our business.

 

International political instability may halt or hinder our ability to do business and may increase our costs. Various events, including the occurrence or threat of terrorist attacks, increased national security measures in the United States and other countries, and military action and armed conflicts, can suddenly increase international tensions. Increases in energy prices will also impact our costs and could harm our operating results. In addition, concerns about other international crises, such as the spread of severe acute respiratory syndrome (“SARS”), avian influenza, or bird flu, and West Nile viruses, may have an adverse effect on the world economy and could adversely affect our business operations or the operations of our OEM partners, contract manufacturer and suppliers. This political instability and concerns about other international crises may, for example:

 

 

negatively affect the reliability and cost of transportation;

 

negatively affect the desire and ability of our employees and customers to travel;

 

adversely affect our ability to obtain adequate insurance at reasonable rates; and

 

require us to take extra security precautions for our operations.

 

Furthermore, to the extent that air or sea transportation is delayed or disrupted, our operations may be disrupted, particularly if shipments of our products are delayed.

 

Business interruptions could adversely affect our business.

 

Our operations and the operations of our suppliers and customers are vulnerable to interruption by fire, earthquake, hurricanes, power loss, telecommunications failure and other events beyond our control. In the event of a major natural disaster, we could experience business interruptions, destruction of facilities and loss of life. In the event that a material business interruption occurs that affects us or our suppliers or customers, shipments could be delayed and our business and financial results could be harmed.

 

The market for the Company’s common stock is illiquid.

 

The Company’s common stock is traded on the Over-the-Counter Bulletin Board. It is thinly traded compared to larger more widely known companies in its industry. Thinly traded common stock can be more volatile than stock trading in an active public market. The Company cannot predict the extent to which an active public market for its common stock will develop or be sustained. The high and low bid price of Ever-Glory’s common stock during the past 52 week period is $4.90 and $0.15 respectively.

 

23

 


Table of Contents

 

Our stock is a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations which may limit a stockholder’s ability to buy and sell our stock.

 

Our stock is a penny stock. The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and accredited investors. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.

 

NASD sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.

 

In addition to the “penny stock” rules described above, the NASD has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, the NASD believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. The NASD requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

 

Because our assets are located overseas, stockholders may not receive distributions that they would otherwise be entitled to if we were declared bankrupt or insolvent.

 

Our assets are, for the most part, located in the PRC. Because the Company’s assets are located overseas, the assets of the Company may be outside of the jurisdiction of U.S. courts to administer if the Company was the subject of an insolvency or bankruptcy proceeding. As a result, if the Company was declared bankrupt or insolvent, the Company’s stockholders may not receive the distributions on liquidation that they are otherwise entitled to under U.S. bankruptcy law.

 

Export quotas imposed by the WTO could negatively affect our business and operations, particularly if the Chinese government changes its allocation of such quotas to the Company.

 

Pursuant to the World Trade Organization (WTO) Agreement, effective January 1, 2005, the United States and other WTO member countries removed quotas from WTO members. In certain instances, the elimination of quotas affords the Company greater access to foreign markets; however, as the removal of quotas resulted in an import surge from China, the U.S. took action in May 2005 and imposed safeguard quotas on seven categories of goods. Exports of each specified product category will continue to be admitted into the United States in the ordinary course until the restraint level for that category is reached, after which further exports will be embargoed and will not be cleared until after January 2006. Additionally, on September 10, 2005, in response to the surge of Chinese imports into the European Union (EU), the EU Commission signed a Memorandum of Understanding (MOU) with China in which ten categories of textiles and apparel will be subject to restraints.

 

24

 


Table of Contents

 

Although certain of the Company’s apparel products fall within the categories subject to the quotas with respect to exports to the United States and Europe, the Chinese government allocated a portion of the aggregate export quota to the Company based upon the amount of product that the Company exported in the prior year. The imposition of such quotas did not have a material affect on the Company’s net sales, although it did impact its gross margin. See “Results of Operations” above. As a result of the Company’s prior export performance, it was awarded a sufficient portion of the export quotas to enable it to increase its sales to customers in Europe and the U.S. despite the reinstitution of export quotas. In order to increase the Company’s allocation of future export quotas, however, the Company accepted more orders for lower margin products, which had an adverse affect on the Company’s gross margins. The Company believes that its customer mix and its ability to adjust the types of apparel it manufactures will mitigate its exposure to such trade restrictions in the future. However, there can be no assurance that additional trade restrictions will not be imposed on the exports of the Company’s products in the future. Such actions could result in increases in the cost of its products generally and may adversely affect the Company’s results of operations. The Company continues to monitor the developments described above.

We expect to experience volatility in our stock price, which could negatively affect shareholders’ investments.

 

The market price for shares of the Company’s common stock may be volatile and may fluctuate based upon a number of factors, including, without limitation, business performance, news announcements or changes in general market conditions.

 

Other factors, in addition to the those risks included in this section, that may have a significant impact on the market price of the Company’s common stock include, but are not limited to:

 

 

receipt of substantial orders or order cancellations of products;

 

quality deficiencies in services or products;

 

international developments, such as technology mandates, political developments or changes in economic policies;

 

changes in recommendations of securities analysts;

 

shortfalls in the Company’s backlog, revenues or earnings in any given period relative to the levels expected by securities analysts or projected by the Company;

 

government regulations, including stock option accounting and tax regulations;

 

energy blackouts;

 

acts of terrorism and war;

 

widespread illness;

 

proprietary rights or product or patent litigation;

 

strategic transactions, such as acquisitions and divestitures;

 

rumors or allegations regarding the Company’s financial disclosures or practices; or

 

earthquakes or other natural disasters concentrated in Nanjing, China where a significant portion of the Company's operations are based.

 

In the past, securities class action litigation has often been brought against a company following periods of volatility in the market price of its securities. Due to changes in the volatility of the Company’s common stock price, the Company may be the target of securities litigation in the future. Securities litigation could result in substantial costs and divert management’s attention and resources.

 

25

 


Table of Contents

 

ITEM 3.    CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Exchange Act, as of the end of the period covered by this quarterly report, being September 30, 2006, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company’s management, including our company’s Chief Executive Officer along with our company’s Chief Financial Officer. Based upon that evaluation, our company’s Chief Executive Officer along with our company’s Chief Financial Officer concluded that our company’s disclosure controls and procedures are effective as at the end of the period covered by this report. There have been no significant changes in our company’s internal controls over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

 

Disclosure controls and procedures and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.”

 

PART II - OTHER INFORMATION

 

ITEM 1.    LEGAL PROCEEDINGS

 

The Company is a named defendant in an action pending in the U.S. District Court for the Northern District of Ohio. The action was filed on February 22, 2006 by Plaintiff Douglas G. Furth. The other principal parties are named defendants John Zanic, Wilson-Davis & Co., and Godwin, Pappas, Longley & Ronquillo, LLP. The action alleges that Company breached an agreement with the plaintiff under which it had promised to provide plaintiff 1,000,000 shares of its common stock in exchange for certain assistance in marketing and financial public relations services. The action seeks an award of damages in excess of $75,000. The Company denies that it was a party to such an agreement, that it breached the agreement or that it is otherwise liable. The Company intends to vigorously defend its legal position. After vigorously defending itself, the Company was voluntarily dismissed by the Plaintiff without prejudice from an action pending in the U.S. District Court for the Northern District of Ohio. No payment was made to plaintiff and no settlement agreement was entered into between the Company and plaintiff.

 

The Company is also a named defendant in a civil action pending in the U.S. court of common pleas of Allegheny County, Pennsylvania. The civil action was filed on April 17, 2006 by Plaintiff Mark B. Aronson. The action alleges that the Company violated the Pennsylvania Unsolicited Telecommunication Advertisement Act by issuing ‘spam’ emails soliciting purchasers for its common stock. The action seeks an award of damages in excess of $12,100. The Company denies that it was a party to the alleged conduct. The Company intends to vigorously defend its legal position, with the case now in the initial phase of discovery.

 

The Company is aware that ‘spam’ emails soliciting purchasers for its common stock had originated from unknown sources; the company had never participated nor would it ever participate or authorize in the distribution of ‘spam’ email to solicit purchasers for its common stock.

 

         The Company has solemnly declared an anti-spamming policy on its website.

 

 ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

 ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

 


         None.

 

26

 


Table of Contents

 

 ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

On June 26, 2006, Registrant, through its  wholly owned subsidiary, Perfect Dream Ltd, a British Virgin Islands corporation (“Perfect Dream”) entered into an Agreement for the Purchase and Sale of Stock  (the  “Agreement”) with Ever-Glory Enterprises (HK) Ltd (“Seller” or "EGLY HK") pursuant to which Registrant has agreed to acquire and Seller has agreed to sell all of the Seller’s interest in  Nanjing Catch-Luck Garments Co, Ltd,  a Chinese limited liability company (“Catch-Luck”). The Seller owns 100% of the total capital of Catch-Luck. A copy of the Purchase Agreement is included as Appendix A to the Company’s Preliminary Information Statement on Schedule 14C filed with the Securities and Exchange Commission on June 29, 2006.          

 

  On August 31, 2006, the Registrant, Perfect Dream, Seller and Catch-Luck entered into Amendment No. 1 to the Agreement (the “Amendment”). The Amendment changed the terms of payment on the purchase consideration in the transactions contemplated by the Agreement (the “Transaction”). A copy of the Amendment No. 1 to the Purchase Agreement is included as Appendix B to the Company’s Preliminary Information Statement on Schedule 14C filed with the Securities and Exchange Commission on September 22, 2006

 

      A majority of the members of the Board of Directors of the Company (the “Board”) and certain of its shareholders, including Mr. Kang Yihua, a majority owner, director, CEO and President of the Company, are either shareholders, officers or directors of EGLY HK, Catch-Luck or its affiliates. Mr Kang is the 100% shareholder and a director and officer of EGLY HK.

 

     The Board was fully informed of the interests of the other directors in EGLY HK, Catch-Luck or their affiliates and on June 1, 2006 and August 31, 2006 unanimously approved the Purchase Agreement, the Purchase Agreement Amendment and the Transaction. The Board conditioned consummation of the transactions contemplated by the Purchase Agreement and the Purchase Agreement Amendment on approval thereof by the shareholders of the Company in accordance with Florida law.

  Florida law requires that the Transaction be approved by majority of the shareholders of the Company that do not have a financial interest in EGLY HK or Catch-Luck or their affiliates. The Purchase Agreement, the Purchase Agreement Amendment and the Transaction were approved by shareholders (the “Consenting Shareholders”) of the Company that do not have any financial interest in EGLY HK, Catch-Luck or their affiliates.

 

      In addition, Mr. Kang, who owns an aggregate of 614,338 shares of Common Stock and 6,238 shares of Series A preferred stock, which constitutes approximately 79% of the voting power, based on an aggregate of 19,971,758 shares of our common stock issued and outstanding and 7,883 shares of our Series A preferred stock issued and outstanding as of August 31, 2006, approved the Purchase Agreement, the Purchase Agreement Amendment and the Transaction on June 2, 2006 and August 31, 2006

 

       The transaction is expected to close in the fourth quarter. The Information Statement has not yet been delivered to the shareholders of the Company.

 

27


Table of Contents

ITEM 5.    OTHER INFORMATION

 

None.

 

ITEM 6.    EXHIBITS and Reports on Form 8-K

 

 

(a)

The following exhibits are filed herewith:

 

 

10.1

Boundary Drawing of Catch-Luck

 

31.1

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

31.2

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

32.1

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

32.2

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

28

 


Table of Contents

(b) Reports on Form 8-K:

 

On June 26, 2006, Registrant, through its  wholly owned subsidiary, Perfect Dream Ltd, a British Virgin Islands corporation (“Perfect Dream”) entered into an Agreement for the Purchase and Sale of Stock  (the  “Agreement”) with Ever-Glory Enterprises (HK) Ltd (“Seller” or "EGLY HK") pursuant to which Registrant has agreed to acquire and Seller has agreed to sell all of the Seller’s interest in  Nanjing Catch-Luck Garments Co, Ltd,  a Chinese limited liability company (“Catch-Luck”). The Seller owns 100% of the total capital of Catch-Luck. Registrant filed a Current Report on Form 8-K with the Securities and Exchange Commission on June 29, 2006 with respect to the entry into such Agreement.

On August 31, 2006, the Registrant, Perfect Dream, Seller and Catch-Luck entered into Amendment No. 1 to the Agreement (the “Amendment”). The Amendment changed the terms of payment of consideration in the transactions contemplated by the Agreement (the “Transaction”). Pursuant to the Agreement, as amended by the Amendment, Registrant or Perfect Dream shall pay Seller an amount in Renminbi (“RMB”) equal to USD600,000 within 90 days of the closing of the Transaction (the “Cash Purchase Price”) and Registrant will issue to Seller an amount in Registrant’s common stock equal to USD3.4 million within 90 days of the Registrant’s common stock (the “Stock Purchase Price”). After the closing of the Transaction, Seller shall be entitled to receive that number of Registrant’s common stock having an aggregate fair market value of up to USD6.0 Million determined as follows:

 

1.

At the end of the first full fiscal year after the closing of the Transaction in which Catch-Luck generates gross revenues of at least USD19.0 million and net profit of at least USD 1.5million, Registrant shall issue to Seller that number of shares of Registrant’s common stock having an aggregate fair market value of USD3.0 Million; and 

 

2.

At the end of the next full fiscal year after the closing of the Transaction in which Catch-Luck generates gross revenues of at least USD19.0 million and net profit of at least USD1.5million, Registrant shall issue to Seller that number of shares of Registrant’s common stock having an aggregate fair market value of USD3.0 Million.

The number of shares of Registrant’s common stock to be delivered to Seller as consideration for the Transaction will be calculated based on the fair market value of Registrant’s common stock based on the preceding 30-day average of the high bid and the low ask price as quoted on the Over-the-Counter Bulletin Board as of the date of the closing of the Transaction.

Seller is owned 100% by Registrant’s President and Chairman of the Board, Kang Yihua. In addition, a majority of the directors of the Registrant are either shareholders, officers or directors of Seller or its affiliates. The board has been fully informed of the interests of each of the directors, including  Mr. Kang, in the Seller. The board has conditioned consummation of the transactions contemplated by the Agreement, as amended by the Amendment, on approval thereof by a majority of the disinterested shareholders of the Registrant in accordance with the provisions of section 607.0832 of the Florida Business Organizations Code.

The transaction is subject to certain conditions which are customary in such transactions.

 

 

29

 


Table of Contents

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this Report on Form 10-QSB/A to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 EVER-GLORY INTERNATIONAL GROUP, INC.

(Registrant)

 

                

 

 

Date: November 29, 2006

By:

/s/ Guo Yan

 

Chief Financial Officer

 

(Principal Financial and Accounting Officer)

 

30

 


EX-10.1A 2 ex101a.htm BOUNDARY MAP EXHIBIT 10.1

EXHIBIT 10.1A 

State-owned Land Use Right Transfer Agreement

CHAPTER ONE: GENERAL

Article 1:  Parties of the State-owned Land Use Right Transfer Agreement (hereinafter referred to as the “Agreement”):
        Assignor:  The Bureau of Land&Resources of Nanjing City, Jiangning district
        Assignee: Nanjing Goldenway Garments Co, Ltd.
This Agreement is entered into between the Parties based on the principle of free will, honesty and trust and upon consideration, in accordance with the Land Administration Law of the People’s Republic of China, the Law of the People’s Republic of China on Urban Real Estate Administration and other laws, administrative regulations and local regulations.

Article 2: The Assignor leases the land use right subject to the authorization of the laws. The ownership of the leased land belongs to the People’s Republic of China. The State has jurisdiction and administrative power to the leased land granted by the constitution and the laws, other state power provided by the laws of People's Republic of China and rights and interests necessary for the protection of social public interests. Underground resources, buried wealth and municipal public facilities are not covered in the leased scope of land use right.

CHAPTER TWO: CONDITION OF THE LEASED LAND AND PAYMENT OF LEASING FEES

Article 3: The land (hereinafter referred to as the “Land”) leased to the Assignee by the Assignor with the “as-is condition” is located to the east of the inner circuit and to the north of the Chengxin Avenue of Jiangning Economic Technology Development Zone. The Cadastre No. of the Land is  21-100-143-019  , the gross area of the Land is  112,442.30      square meters, deducting              square meters used for              , therefore the actual area of the leased land is   112,442.30    square meters. The extensions of the Land and the coordinate of the boundary location points are specified in the Appendix: Boundary Drawings of the Leased Land.

Article 4: The leased Land under this Agreement shall be used for industrial purposes.

Article 5: The lease term (hereinafter referred to as the “Lease Term”) of the land use right under this Agreement shall be fifty (50) years, commencing from August 24, 2005, the approval date.

Article 6: The leasing fees of the land use right of the Land under this Agreement shall be RMB 300 per square meter, so the total leasing fees for the Land (hereinafter referred to as the “Leasing Fees”) shall be Renminbi Thirty Three Million Seven Hundred and Thirty Two Thousand Six Hundred and Ninety (RMB 33,732,690).

1


Article 7: The Assignee shall pay Renminbi Five Million Fifty Nine Thousand Nine Hundred and Four (RMB 5,059,904), equivalent to 15% of the Leasing Fees, to the Assignor as the deposit (hereinafter referred to as “Deposit”) for the performance of this Agreement on the date of signing of this Agreement by the Parties. The Deposit may be set off as part of payment of the Leasing Fees of the Land.

Article 8: The Assignee agrees to pay the abovementioned Leasing Fees to the Assignor subject to Item (I) of this Article.

(I) Pay the abovementioned Leasing Fees in a lump sum within ten (10) days upon the execution of this Agreement.

(II) Pay the abovementioned Leasing Fees in     installments to the Assignor pursuant to the following time and amount.

Phase I Renminbi                           (RMB          ), payment time: before the      day of          ,          .

Phase II Renminbi                          (RMB          ), payment time: before the      day of          ,          .

Phase IIII Renminbi                           (RMB          ), payment time: before the      day of          ,          .

Phase IV Renminbi                         (RMB          ), payment time: before the      day of          ,          .

CHAPTER III: LAND DEVELOPMENT CONSTRUCTION AND USE

Article 9: The Parties shall conduct an on-site check to verify the boundary markers of the boundary location points of the Land according to the coordinate indicated on the Appendix: Boundary Drawings of the Leased Land. The Assignee shall properly protect the boundary markers of the Land and shall not arbitrarily change the boundary markers. In the event of destroy or removal of the boundary markers, the Assignee shall promptly send a written report to the Assignor, applying for the re-surveying and re-mapping of the Land and restore the boundary markers.

Article 10: In the event that the Assignee plans to build new constructions on the Land under this Agreement, the new constructions shall comply with the following requirements:

Character of major construction: industrial plant;

Character of auxiliary construction: industrial plant;

Floor area ratio of the construction: 1.42;

Density of the construction: 35.47%;

Height limit of the construction:       

Landscape ratio: 28.38%;

Other requirements on land use:        

 

2


Article 11: The Assignee agrees to construct the following projects on the Land under this Agreement and transfer them to the government after the completion of construction without any compensation:

(1)                    ;

(2)                    ;

(3)                    .

Article 12: The Assignee agrees to commence the construction before December 31, 2005. If the Assignee fails to commence its construction on time, the Assignee shall submit the postpone application to the Assignor thirty (30) days in advance, however, such postpone period shall not exceed one year in any circumstance. 

Article 13: When the Assignee builds constructions on the leased Land, the related use of water, gas, sewage settlement, other facilities, the major pipelines outside of the Land, converting station interface and connection projects shall observe the relevant regulations. The Assignee agrees that the piping and wiring installed for public utilities by the government may enter, overpass or pass through the leased Land. 

Article 14: The Assignee shall, within thirty (30) days upon the payment of the Leasing Fees of the land use right of the Land subject to the provisions of this Agreement, apply to the Assignor for land registration with this Agreement and the payment receipt of the Leasing Fees of the Land, receive the State-owned Land Use Certificate and obtain the land use right of the Land.
The Assignor shall promptly handle the land use right registration and issue the State-owned Land Use Certificate to the Assignee after its receipt of the Assignee’s application for land registration.

Article 15: The Assignee shall legally and reasonably use the Land and all its activities on the leased Land shall not damage or destroy the surrounding environment or facilities, provided that the state or any third party suffers losses therefrom, the Assignee shall be responsible and indemnify such losses.

Article 16: During the Lease Term, the Assignee shall use the Land pursuant to the land usage and land use conditions under this Agreement; provided that it’s necessary to change the land usage or land use condition, the Assignee shall handle the related approval procedures in accordance with the laws, submit application to the Assignor and obtain the consent of the Assignor, upon which sign the alteration agreement of the land use right transfer agreement or sign a new land use right transfer agreement and adjust the Leasing Fees for the land use right and handle the land alteration registration.

Article 17: The government reserves the planning adjustment right over the Land under this Agreement. In the case of adjustment of the original land use planning, the existing constructions on the Land will not be influenced, however, any rebuilding, restoring or reconstructing of the constructions or fixtures on the Land during the Lease Term or the renewal term upon expiration of the Lease Term, shall observe and perform the then effective planning.

3


Article 18: The Assignor shall not withdraw the land use right of the Land legally obtained by the Assignee before the expiration of the Lease Term under this Agreement; In the event of prior withdrawal of the land use right for social public interests, the Assignor shall provide the corresponding compensation to the Assignee based on the specific circumstances. 

CHAPTER FOUR: TRANSFER, LEASE AND
MORTGAGE OF LAND USE RIGHT

Article 19: After the Assignee pays the Leasing Fees of the Land in full subject to the provisions of this Agreement, receives the State-owned Land Use Certificate and obtains the land use right of the leased Land, the Assignee may have the right to transfer, lease or mortgage all or part of the land use right of the Land under this Agreement, however, the primary transfer (inclusive of sell, exchange or present as a gift) of the land use right during the remaining term, shall comply with the requirements in the following Item (I) with the Assignor’s acknowledgement:

(I) carry out the investment and development pursuant to this Agreement and complete the development of more than 25% of the total investment;
(II) carry out the investment and development pursuant to this Agreement and achieve the conditions for industrial land or other construction land.

Article 20: For the transfer or mortgage of the land use right of the Land, the parties for transfer or mortgage shall sign the transfer or mortgage agreement in writing; in the event that the lease term of land use right is more than six (6) months, the landlord and the tenant shall also sign the lease agreement in writing. Such transfer, mortgage and lease agreements of land use right shall not violate the state laws and regulations and the provisions of this Agreement.

Article 21: The rights and obligations under this Agreement and registration documents shall transfer and assign accordingly with the transfer and assignment of the land use right of the Land. After the transfer and assignment of the land use right of the Land, the term of the land use right shall be the remaining term equivalent to the Lease Term under this Agreement minus the past term. Upon the lease of all or part of the land use right under this Agreement, the rights and obligations under this Agreement and the registration documents shall still be assumed by the Assignee.

Article 22: The overground constructions and other fixtures shall also be transferred, leased or mortgaged with the transfer, lease or mortgage of the land use right; the land use right shall also be transferred, leased or mortgaged with the transfer, lease or mortgage of the overground constructions and other fixtures.  

4


Article 23: In the event of transfer, lease or mortgage of the land use right, the parties of the transfer, lease or mortgage shall apply to the competent land administration departments for land registration with this Agreement and the related transfer, lease or mortgage contact and the State-owned Land Use Certificate within thirty (30) days upon the execution of the related contract.

CHAPTER FIVE: EXPIRATION OF THE TERM

Article 24: In the event of expiration of the Lease Term under this Agreement, provided that the land user still plans to use the Land under this Agreement, the land user shall submit the renewal application to the Assignor at lease one year prior to the expiration of the Lease Term. Except that the Land under this Agreement shall be withdrawn for social public interests, the Assignor shall approve such application.
If the Assignor agrees to renew the term, the Assignee shall handle the compensable land use procedures according to the laws, sign a new compensable land use agreement with the Assignor and pay the land use fees.

Article 25: Upon the expiration of the Lease Term, the Assignee doesn’t submit the renewal application or the Assignee’s renewal application is not approved subject to the Article 24 herein, the Assignee shall return the State-owned Land Use Certificate. The Assignor shall, on behalf of the state, withdraw the land use right and handle the land use right release procedures subject to the related regulations.

Article 26: Upon the expiration of the Lease Term, provided that the Assignee doesn’t apply for renewal of the term, the Assignor shall be entitled to, on behalf of the state, withdraw the land use right under this Agreement and the constructions and other fixtures on the Land without compensation. The Assignee shall keep the normal functions of the constructions and other fixtures on the Land and shall not intentionally destroy them. If the constructions and other fixtures on the Land are nonfunctional, the Assignor may have the right to require the Assignee to remove or dismantle the constructions and other fixtures on the Land and restore the leveling of the ground.  

Article 27: Upon the expiration of the Lease Term, provided that the Assignee’s renewal application is rejected by the Assignor subject to the Article 24 herein, the Assignor shall be entitled to, on behalf of the state, withdraw the land use right under this Agreement without compensation, however, for the constructions and other fixtures on the Land, the Assignor shall give the Assignee the relevant compensation according to the surplus value of the constructions and other fixtures on the Land at the time of withdrawal.

CHAPTER SIX: FORCE MAJEURE

Article 28: Any Party shall not be held liable for the non-performance of the whole or part of this Agreement caused by force majeure, but if possible, shall adopt all the necessary remedies to reduce the losses caused by force majeure. If the event of force majeure takes place after one Party delays the performance of this Agreement, the delaying Party shall not be exempted from the related liability.

5


Article 29: The Party suffering from the event of force majeure shall inform the other Party in writing by way of letter, telegraph, telex, facsimile or others within seventy two (72) hours and submit the report explaining the reason for which performance of this Agreement or a part thereof becomes impossible or the time of performance needs to be extended.

CHAPTER SEVEN: BREACH LIABILITY

Article 30: The Assignee shall punctually pay the Leasing Fees of the Land subject to the provision of this Agreement. If the Assignee fails to pay the Leasing Fees of the Land on time, the Assignee shall pay a daily penalty of 0.3% upon the unpaid amount for each day from the due date to the date of actual payment to the Assignor. If the delaying period exceeds six (6) months, the Assignor may have the right to terminate the Agreement and withdraw the Land. The Assignee shall have no right to claim the return of the Deposit and the Assignor may also have the right to require compensation from the Assignee for other losses caused by the Assignee’s breach of the Agreement.   

Article 31: The Assignee shall commence the development construction according to the Agreement. In the event that the Assignee does not commence the construction within one year after the commencement date of construction provided in the Agreement, the Assignor shall be entitled to a land idling fee not exceeding 20% of the Leasing Fees; in the event that the Assignee does not commence the construction within two years after the commencement date of construction provided in the Agreement, the Assignor may have the right to withdraw the Land without compensation; except that the commencement of construction is delayed by force majeure or the actions of government or governmental authorities or the necessary predevelopment preparations for the construction.

CHAPTER EIGHT: NOTICE AND DECLARE

Article 32: Any notice or communication required or permitted to be served under this Agreement, no matter delivered in what manner, shall be deemed to be effective upon actual receipt.

Article 33: If any Party changes the address for notice or communication, the bank or the bank account, the Party shall inform the new address, bank or bank account to the other Party within fifteen (15) days upon such change. The faulty party shall assume the liability for the losses caused by the delaying notice of the party.

Article 34: During the conclusion of this Agreement, the Assignor shall be held liable for explaining and answering the questions related to the Agreement raised by the Assignee.

6


CHAPTER NINE: GOVERNING LAWS AND DISPUTE SETTLEMENT

Article 35: The execution, validity, interpretation, performance of this Agreement and the settlement of disputes shall be governed by the laws of the People’s Republic of China. 

Article 36: All disputes arising in connection with the performance of this Agreement shall first be resolved by mutual negotiation. If a settlement can not be reached by negotiation, the disputes shall be resolved in the manner provided in Item (II) of this Article hereof:

(I) Submit to the                 arbitration commission for arbitration;

(II) Submit the case to the People’s Court according to the laws.

CHAPTER TEN: MISCELLANEOUS

Article 37: This Agreement shall come into force subject to Item (I) of this Article.

(I). The land transfer scheme under this Agreement has been approved by Jiangning District Government of Nanjing Municipal. This Agreement shall come into force upon the execution of the Parties.

(II). The land transfer scheme under this Agreement is to be approved by           (            ) government. This Agreement shall come into force upon the approval of the                  government. 

Article 38: This Agreement shall be executed in six counterpart originals. The six counterparts are of the same legal effect, with the Assignor and Assignee respectively holding three counterparts. 

Article 39: There are altogether eight (8) pages in this Agreement. The Chinese version shall prevail.

Article 40: Where the amount, area or other items under this Agreement are written in capital letter and figure at the same time, the capital letter and figure shall be consistent. If the event of conflict, the capital letter shall prevail.

Article 41: This Agreement is executed in Jiangning District, Nanjing City, Jiangsu Province of the People’s Republic of China on April 7, 2006.

Article 42: The affairs not covered in this Agreement may be affixed to this Agreement as appendix upon the mutual agreement of the Parties. The appendix shall have the same legal effect with the Agreement.

(Signature Page)

7


Assignor: The Bureau of Land&Resources of Nanjing City, Jiangning District
Address: 1200, Shuanglong Da Dao Street, Jiangning district, Nanjing
Authorized signature: Duan Jun

 

Assignee: Nanjing Goldenway Garments Co, Ltd
Address: The Ecomonic and Technological Development Zone of Jiangning District
Authorized Signature: Kang Yihua

 

8


Appendix: Boundary Drawings of the Leased Land

 


9


GRAPHIC 3 ex101map.jpg GRAPHIC begin 644 ex101map.jpg M_]C_X``02D9)1@`!`0```0`!``#_VP!#`!`+#`X,"A`.#0X2$1`3&"@:&!86 M&#$C)1TH.C,]/#DS.#=`2%Q.0$17137!D>%QE9V/_ MVP!#`1$2$A@5&"\:&B]C0CA"8V-C8V-C8V-C8V-C8V-C8V-C8V-C8V-C8V-C M8V-C8V-C8V-C8V-C8V-C8V-C8V-C8V/_P``1"`,!`C<#`2(``A$!`Q$!_\0` M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4% M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D* M%A<8&1HE)B7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$! M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$" M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#T"DI:2@`J MG/JVFVTS0W&H6D,J_>22958=^035RJMV;&UC>ZNQ!&H(W2R`#V'/XXH`:^KZ M:A`?4;125#C,RC*GH>O3WJ:&\MKB+S8+B*6/^^CAA^8K.\27=I;Z-:2>[UB]TIY&CA:T22-XSM="68$@COD#\J`-BBL?1M4\Z4: M;/(LM[;HPG8'^ZVT$CU8<^U:C.!Q`^G>@"2BBB@`HHHH`****` M"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@#D/[;U'_A8_]D_:/]!_YY;% M_P">.[KC/7GK16?_`,U>_P`_\^]%`'H%)2TE`!5>[28F*2!4=HV)*.VW(P1P M<'GG^=6*RM:5IGMH)=.>\M#)NEQ@X('R_*>HSU^G?-`%BYL8-3@VWMN-KQE" MC=L'F8.1NQS^M`$M%%%`!1140DE\QPT!VA ML*RL#D8!R>F.21CGI[T`/9U5U0GYFS@>N*$D212T;JX!*Y4YY!P1^!!%",6! MRA7GOCG\J=0`F]=^S<-^,[<\X]:7(_*DV+OW[1OQC=CG'I4;6T#.7:",L2&+ M%!DD#`/Y<4`2T4V*-(8DBB0)&BA551@`#H!3J`"BBC\*`"BBB@`HHHH`**** M`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"O,_&RM:^,% MO(&E>2...8J.-N&"@`^AX_$UZ97`_$2TO)-3L)+:0$RQF-(E.&W*=Q/\ORH` MT+Z"ZG\5WU]IT\4$NGV\2OO!V2`Y8AL#/3'3VKH=)U*/5+".Y1#&S*"T;'E, M@$?F""/8BL_PD[7EE<:M(,/J$[2!<\JB_(JGZ;?UJ2ZOK;1Y%@AA6)(PLDO[ MLX\G)!*G_9)7CG`/2@#9KGX6'_">W(926_L]=K8X`W\C\_Y5LF\BXP)6!`(* MQ.P(//4"LFV/_%;WH.?^/*/'_?1H`YV"S,WBC5-1DCVR0ZA;Q1%&QC,B@GCU M3K]3]:[T@>:K=P".GTKBM-U2*:V6=4E_T_6/$0^9;Q1R.J2/"&,@0D!MN>!QW[=:UP,#%`!1110`4444`%%%%`!1 M110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%% M%`!1110`4444`%%%%`!7*?$:S-QX>695):WF5N#V/R_S(KJZSM?6\;2W-A%' M+.CHX1^C!6!_/CCOZ4`.T*V-IH5A`T?END"!T]&P-WZYI]_81WIC+C.T,C#. M`\;##*?8\'ZJ*72KY=3TRVO478)D#;FPUS7KTI_P`>UE'L.>"?F(!^I_E5_P`[['XL,+%MFH6X M9Q&?IC-+`]W<3`W%K]G2,[E(F#%C@C&`.G/ MKU%`%RBBB@`HHHH`****`"BBB@`HHHH`***9-+'!"\LSK'&@+,S'``]:`'D@ M`DG`'4FLJ2"/7#$\T>[3T(>-6R/-;LQ']T=O7/3&,V(&EOG,LL?EVA'[M&^] M)D?>8=ACHI_'T%T``8'`H`****`"BBB@#@/^:O?Y_P"?>BC_`)J]_G_GWHH` M]`I*6DH`*AN[9;NW:%WD0'!#1L592#D$$5-01D$>OI0!RVM:]?Z(C0[!=X9, M7>`%3+\K*`,*<<`CKZ5T5MF6..9I5D8IUC;Y#G'3UZ=3_6H(GT^PC^RI(BB- MT4JSEF#.WRY)RVMC'YEW<10(>AD<+GZ5B+J.KZS*!I4`LK$D?Z9./G M<=]B'],\58L_"^G6\_VFX62_NCUFNV\QOP!X'Y4`2_\`"063Q"2V2[NUSC-O M:R./SQC]:B'B"0R%5T35B.S>2HS^;"M*[O[.R7==W4,`QG]XX%4%\1V,QQ:) M=78S@M!;NRCO][&*`'C6)<9.CZD/^`(>?3A_UZ4Y]6DC;#Z5J`P<';&K`#UX M8Y_"H$U^1S@:'JWXQ(/YO3TUJ5AG^Q=349QDI'_+?F@!K:^R2[&T;50,XW"! M6'UX8TB^(09'5M)U90O.XVI(;G'&":0^(7SQH>KG_M@O_P`50/$#G_F!ZN./ M^>"__%4`2G7%5@/[.U+DXR+5C_GK3)?$"QJ#_9>JOD'A+1CTI/\`A(&V*W]C M:M\Q(Q]G&1@=_F[]JD_MQ0Q!TW4@!W^S$YH`5M;55#'3]1P>F+9B?RH.MH"` M=/U+GTM6-']MK_T#M2Z9_P"/8TO]M+N"_P!GZCD_].QH`4:U$8R_V/4,@* M+520UEJ0*D`@VC\$]!4L?B&V?=FTU%"K!2&LI.I^@/J#0!%%XGM9]OD66HRY M.&V6C?+]:@E\96$?2SU%VP#M6V()![\D>E6[OQ':6D9DDM]0\I1EI/LLYN!%?!L`D&RE)&>G1:9_PDE@\3R0I>3!!EPEI)\H]3D`4X^(] M-"EBUR`#@DV*8WBG2E;#27`&,[C:RX]A]VE'BC2N/WMQ_X"R\?^.T`,@\6 M:1,I(FF4@D;3;R9XZ]!0WBK2GA9H)Y';!VYMI=I/N0GK2+XKTJ2,.DMQ@@GB MUD/_`++BL?1/'EK(LJZM(8G5B0XC8C'``P`??.>]`&Z_B73(E_?RRQ,.H>WE M7MGNHI8_$VD2YV73$@X(,+@@\]BOL?RJ+_A+M!SC^T4!X/*,/Z4[_A*]#^;_ M`$]/D.&^1N#^5`$DGB/2HD+R7+*HZDPOQ^E,_P"$JT78'%[E"<;A$Y'7'7%- M_P"$NT'_`*"47_?+?X4T^,=`$0D.HKM/_3-\_EC-``WC#04.'OMIR01Q_, M4[_A+M!_Z"47_?+?X41>(_#P`2._M4$C,#CKCJ3757'B30D!2;4;9@&P5SNY'T^E9 M6J:GX4U"_@GNKV*1X(Y%V["5<,.A..HYQSU-`&?X%\3V=OI?]GZC<1P&$GRB MV1N4DDY/3()KHSXMT$'']I1?DW^%?3;N"\$TEKN:.WB;1-0@N5DV;EED3^!".,C&?XC].>*MZWJ?AN[\/WT%M'RG,4G0"3C&?;`Z4`>AZ9XET2&;4< MZA&JM<>8I.?F!1>1QZY'X5)+XLT-M3M4%XC##YDYVH<#&21WY_R><7PQK^E7 M-Q=RZE]E@9HX?]:B@,X4AB/;A:OW&I^$Y=7M'WVA9-^7$0VYQQN./KB@#6;Q M5H:,`=3@R?0Y_E2#Q9H1;:-2AS[YQ_*JPU3PG'+%MDTT.I.PK&ORD]><<5,= M1\,">-S<:7YJ-\CY3*GU![?6@"8>)M$(S_:EM_WW2_\`"2Z)_P!!2U_[^"HY M[WPU(]%4`G5+3G MTE!I/^$FT3_H*6W_`'W4!U#PQ)$S-<:65((8$IDCTQWJ-)_"./E;1P&3D8C' MR]TB4@1ZG:$GH/.4'^=4[5/"H<1VW]D, M[9`"F-F.>H]:MKH^BW!,JZ=82Y)RPA0Y/?M0!?BFCGC$D,B2(>C(P(/XT^L! M_"&G)(9=/DNM.E/5K68KGZ@Y&/:J\L_B319%:94UBR_B:./9.HQZ#@_KG':@ M#IR0!D\"JL^I6-O"99KR!(\9W-(,8Z?SXJ+2-9LM9MS+9R$ER4@P#/,XQ]X\<+SP.^,TFN)'--IEO/EH M);L"1/X7PCLH/J-RJ<=.*ELM/;39/+LW)LV/^ID#T]:V-2M!>6HB+E")$<,&VD$,#U_"H8M#TY#*TELD\DW^L> M<>8S_7/\AQ0!%H27LEE;75[=%V>(%8D4*J@@$;O5AZ\#D\=ZU:J:79BPLH[: M.=YH44",O@D#TR.W3'\ZMT`%%%%`'`?\U>_S_P`^]%'_`#5[_/\`S[T4`>@4 ME+24`%%%%`')7S09UDM&'$&HVTO!X8_N@5(_/\^G%=;7+:E/I`M+R,:G`[7E M["[!9%+)AHP1UZ#83716E[:WR,]I<13JC;6:-PP!^HH`GHHHH`BN[J&RM9+F MYD$<,2[G8]A7/V-A-K]TNIZQ"\<$3YL[-^-HXP[CN?8U$EQ)XC\17.GW$(;3 M-/?<67I)*",*WT^;@>G-=!J6H6^EV,MY=OMBC'.!DD]@/>@"2[NX+*V>XNI5 MBB099FK%BN-5UQW:U9M-TXH/+E>+,TI/<`G"CWQGTZ\8%]J>HW.H:7?:M8H- M/EFQ;VC/M(;HKOD8/7_/?M8Y[QT):S$;<<-*#GGV'TH`HV?AG3+:9YY(3>7$ MGWIKH^8Q_/@?@*V*9$9"O[U$5L]%8L,?D*`TFS+(N[/0-GC\NM`#Z*"<`G&? M84AR!P,T`+14+3R#I:S-]"G_`,53FD8,0(9&&"<@KCZ=:`)**K3W4D6=EE/, M<9`1HP3^;#IFHK>_FG4L=,O(L'&)/+!/_C]`%ZBH()Y)5!>TF@)ZB0H<=?[K M'T'YCWQ-D[&I$AH_$`U1:T-CXO\-V[G?Y5F\0;W5&K,\7^)&U/1+=K2RNHK9I@WGS(` MI(R0!@GZ_A6=<^++O4=?TR^MK)1<]J`.M\,^(XO$$5RR1>4T,FW:6R2I^ZWMWX]JVZ\[CM_%EC>HUE;P.;> M%;?]W$55T'NX&<$=??CO6GIVI^(;P.LEW:P7,>!);M9R%TST)QZ^HR*`.CUG M4TT?3);Z6-Y$B*[E3&>6`[_6JS>(=.C,:WGG6DKXVQW$#*W0FL;Q' MI&NWVEW$"ZH;L_*3;+:")7&X'AB>HZ]>U<7XB&KP:@MCK-])*!M<$N60`CKC MU'(Z>M`'K=Y?6=E&6O+B*)5`8[V`[\I^>VF2I)L8>;M0J:\[B\*6[ZA8PPWLUY'*_[_R[5T\M?7)S]*]"L%T[2[;R+.UEAC4[2$M9 M,L0.I.W)^M`&G2,H=2K`,I&""."*J/J=M&4#^>"_"C[/)S_X[3_ML6QWV7&$ M&X_Z/)G\!C)^@H`L*H484`#V%*0""",@]0:HC5[-H!.#,8O[_P!GDQ_Z#39M M:L((UDEE=%==RDPOR/7I0!<>"&08>*-AC;RH/'I^E/1510J*%4<``8`K(N/$ MM@EBUS;^=$]`#BK-EJUM>6JSH)0"/F!A?Y3WZC]:`+#V=J[%GM MH68\DE`2:Q/%EM9F)+RYGA@DC@GBC:3^(O&1CW^GU]:UH=4LYW*0REV'948_ MTKC/B5JT$UO;Z;$^94D\V12K`K\IV]1WW&@#3\,:AH4NDV&DQ"*6:6/,D!CS ME]N7+9X]:Z$Z7IY*DV-ME>5_GW=Y:6@%\L8*[ M"0#M//RC@DC(_*ME?$&DOG9?Q.1C(0[CSTZ55N_%VC6LPB>[4D9WX!.W`^G) MZ4`<7\.(+*XU6XCNX897$0:(2J&P0>2,]^E=!KEK:)XRT:'^SK1XYE<.&B&& M^O8D8X^M8UI=Z1IWCR*\M+Q39W*,[L>%B9@3M_,#TQD>E=#?:[HDVN:9.+^W M8P>;E]QPH9<=>G.*`-H:-I8='&G6@9/ND0J"/TI7T?3'D\Q].M&?^\8%)_/% M0-XDT1613JEKE\8Q("!]3V_&AO$FB*Q4ZI:Y'I("*`)CHNE%%0Z99%5S@&!, M#/X4W^PM'_Z!5C_X#I_A38O$&CS2"./4[4L>@\T#-32ZOID)`FU&TC)Z!YU& M?UH`A7P_HRDD:59<^L"G^E1Q>&-$B1U73+8A\YW)N/X$].O:KDR@B)=8M2,LRJLV!PWX"M+2=Y*ZI%KSI9W447[J,GRMV`P.TGOG']*TO"WBJ MWUR%89BL-\H^:/L_NO\`AVJKXM\*OK=U+>+(R/#;*L0`SO8,Y((_$8^M`'5@ MY`(SSZC%9FJ!CJFC8)"_:7R/^V,G_P!>F^&=736-)BEW?Z1&`DZ\Y5QU_/K2 M:P9/[5T58R!FY,8XJ6JFDG.D61'(\A/_`$$5;H`****`.`_YJ]_G_GWHH_YJ]_G_`)]Z*`/0 M*2EI*`"LSQ!J,FFZ<)8%W322I%&-I;ECCH.IQGBM.JNI6,>I64EK,SJKX(9# MAE((((/J"!0!GQWVCPZ(KS2*]A'((UEE0,LC9!##`QU[X&"#Z5<.K6QO+2VC M;>UT"\;`':R!<[@V,'L,9SS7,W?A_5HM!30PT$]H\X_T@!O,B4R`Y*]SR3UZ M9^M:FC^$X=*N;:=;^\G-N&"1R,"BAAS@8XYYH`Z"J>KWRZ9I5S>L,^2A8#U/ M8?GBK14EB=Y`XXX_SS6#XUB:YT>&S5]GVNZBAS]6_P#K9_"@"?PE8M9:!!YN M3/<9GE)ZEFYY]\8'X53#/K_B:6%\'3M+<'`Q^\G]_P#=YX]16CK-PFC^&[EU MD91#!LC;/S;L;5Y]1ZT`7]?TN MWU2ZTZ&[CWP>8^X;\9.PX'KVSQZ5I6D+6T"PM,TH7A68<@=@3W^M5KJ-AJ>F ML6=@OF*20.25ZGWX/ZU?8;E(R1D8R*`%HJE!?K]L:RN!Y,_)B#,#YR#^(>_J M.WTP:NT`%%%%`!1110`48&<]Z**`"BBB@`HHHH`*BFM;>/QJ M6B@#F?$7A;2IM)NY8+*&"XCB9T:)=O*@GH.*\Y\-,!XCTWQEBA9G91&%SD\8Z MYR?3I7/:$[ZQK=YK+*3:H/L]DQ'50?G8?4CK]16AXE;;X;U([@O^C.,GZ'C\ M>E+X<(/AS3<*5_T:/@C'\(H`TJK26,#W\5[@K<1J4W*<;E/\+>HR<_6K-%`! M3##$9A,8T,H&T/M&X#TSZ4^B@`HHHH`****`"BBB@`````&`.@%%%%`!7.>. MM.%]X=N)(X@\\&V12%&[`///T)-='00""",@]0:`*NEWRZEIEM>HNT31AMN< M[3W&>^#3K?ZM?:M:7WUW1K?[-!B:25PQ4`JP3J.._^%;=4+[2;>_OK&\F:0263,T85L`D MXZ\>PH`L/96LDJ2O;0M)&=R.T8)4YSD'MR32K:6R2>8MO$KYSN"`'\ZFHH`K M-I]DS*S6=N60$*3$N5!ZXXILNE:=,`)K"UD`Z!X5./TJW10!G6V@Z5:32RP6 M%NC2_>^0''TST'L.*L?V?9$Y^QV^1W\I?\*LT4`47T;2Y)#(^FV;.?XF@4G\ M\4)HVEQD&/3;-2.A6!1_2KP((!!R#T(JE-?-(6BT]!/+R/,S^[C/^T>_T'/' M;K0!#PXR2?3J:YZY\*0:Y)[H65C-%;72KNMI4VLC8. M,&_&>]LFQUAN>^V7/?VRWZ^U;>J#_B=:*>_GR?^B7KCO$U MIXF;0H)-2,=QYKF]6:TFA@66""97D"_,Y4JRDA<=L M@\$D_AS5U7Q):+I;MIERMQ>3(1;Q1*7Z:T<44#,+K)99%91CIP"<#J:[&@`HHHH`X# M_FKW^?\`GWHH_P":O?Y_Y]Z*`/0*2EI*`"F3>9Y+^3L\W:=F_P"[GMG':GT4 M`83W/B7^S^-.LOM6[;E;DXZ_>VE<8Q_M9_E5C3H-635+J>]DA^S3JI6%)&GW\-CY$C,S0L\V/W42-)@ECGCH:W001D_?G\*Z"L#Q:RHFD.P&!J<&6(SM&2?PZ4`1>.G']D6T+)O M6XO(HR/;D_TKI*Y[Q8ZBXT-'S@ZE$>"!R,X]^I_SQ70T`4+Y'_M+394Q@2NC M`CL8V.?S4?G5^J&I/MO-+Y/-T1P,Y_+7%KXXT.Z(`!VH6/3&\Y_+=0!T/ MBX$^%]0V]?*],\9&:N:.JIH]BJ#"K;Q@#VVBH/$I`\-ZEN9E'V=^5^AX_'I4 MNB*4T/3U8Y*VT8/_`'R*`+U%%%`!1110`4444`%%%%`!1110`4444`%%%%`% M*?3()]5M=1;(GME=%QC#!O7Z<_F:NT44`%%%%`!1CG-%%`!1110`444$@`DG M`'>@`JK?ZC:Z=$)+F4*6X1!R\A]%7J3]*A^WO=L%TQ8YDW8>X9OW:_3'WS], M#WJ:VL8X'\UV,]R1@S28W8]!V`]A0!C:=8ZO=,WVF0Z?IQDWI:QD&7;Q\A8? M=7.>!R,XSBNABBCAB6*)%CC0855&`!Z`4ZB@`HHHH`P_!IV>$[$N%3"-G`P! M\QYK*\>W&F7.B^9'>6K7EO(CQ!75GY."/7&.?PK5\'*4\/6\>#A6EY*XS^]? MMV^F.]:&JV\-[I-U#*%9&B<9(!P<'GZB@#F-3\8Z;=:;/;><@^TV#X8!CME( MQL(QQUZTWPU=L=+\,Q@+(S2SJ3W4`/[XZ8Z]JL>#[>R?P7%+-:0R,JR[RT:D MM\S>H],=:H>$W`T_PZ&4)_I<^#TW?NWY_7'X4`=U)(D,9DE=41>K,<`?C54W M>FB MG5!?7<=C92W,O*QKG`ZL>P'N3@#ZT`NWFJZM;-:VFVXAAR[;MC!2<8] M^6R#Z?C6WH-AJFGM+#=W-M)9C_41QHAU.#=],G^N*W:P/%\JQ6NG,R%O^)A#C';!)_IC\:`(O&`;[1H3X M78-2B!)Z@YX_#@_I725@>+!&R:0CYRVIP!2&((Z^GMQ^-;]`%'4&Q>:6-H.Z MZ89/;]S)TJ]6?JDSQ76F*D:N9+K;DKG:/+?3-:%`!1110`445'!"E MM`D,>1&@PH)S@=A0!)137=$QO95R0HR<9)[4Z@`HHHH`****`"BBB@`HHHH` M*XCXG6W^A6-\K;7BF,8QP?F&0<^VS]:[>N6^(R[O#7$32$3*@"3Q7?"7P--=1G_`(^(H\8&1\Q7/TXS6]8H(["W1>BQ*!^0KAM-;^U/AC>6 MQ^_:;NIYPI$G\N/PKL]&G^TZ-8SD@F2W1CCU*C-`%VBBB@`HHHH`****`"BB MB@`HHHH`****`"BBB@`HHHH`****`"J%W9>9JUA>H,O$7C?).`C*>WKN"_F? M:K]%`!15/5KU=.TZ:[8\1#=C(RV/X1GN>E5-+U276UE>.UGM+5?DW3#;(Y(Y MP`>`,CGG.>V*`+MY?);`(J//.QPD48R2??LH]SQ4,EA)?&-K^0[`/FM8VS&Q MSW.`6[<<#VJY!;Q6R%(4V@L6/.22>I)[FI*``````8`Z`4444`%%%%`!113) M9!#"\C`E44L<#)XH`YB&>:/X?^?:R[I"AS(K?=4R'<0?8%OIBMQK*WL=$DM+ M9!%!'"RJ`<8&#DY_7-4?"@5?"%D+AE:/R26+@`;47"L0S`'`ZD8)_(U M8\-.JV?ALAW#?:YU/3C*G@9[=/S/M2>&]+T?4?!TJWIB297D?S-P\Q.!SUZ< M=.AI_AE,67AKMNNIVW+DD?*W!QZX_*@#H_$[RR2:;8I,\$-W<[)G1]A*@$[< M^_Z]*NZQMM=$NB+MK55A(23!<=,]NIX[5HT`%%%%`'!R1[ M/BW$W/SKN_\`()']**=-('^+-NH/*1E3_P!^F/\`6B@#NZ2EI*`"JFJ6*ZEI M\MJSF/?@JX&=K`@J<=\$#BK=4]7O7T_39;F*'SI1M6./^\S,%4?F10!FZHFN M7NG-8+:VJM.OES3K,2JJ>"0I&>F?I[UJ1VAB6TBC91%;`#D9+84J![=7"0-%=R1J88HVW1!^A+% ML''&?E'>@#1?SH`9XTC9AHS" M8Q@:C$,YX&<_-^&/UKI:YKQP@>RTT,VU/[1BW-C.T889Q^-=+0!EZRKFZTDJ M/E6\!;U'[MQ_6M2LW5A.;K3!%L,?VK]X">2-C8Q_/\*TJ`"BBH);ZTACDDEN M842,D.2X`4^A]Z`)Z;+&DT9CD4,C=0>]5X+C[:BRV[,L&00Y7_6#`((S_"X([?0]JN7D# M7-I+"DSPLZX$B?>4^HH`FHK$BUD:8KVVN3JL\8S'-MP+E>.5`_BYP5_+BM:W MDDEC#R1&+<`0C$;A]<<9^F:`):***`"BBB@`HHHH`*Y?XA0F?P^@$JQXN%)9 MFVCD,.?;FNHK`\<+N\)WI\I9"H4@$$X^85@SM@E8EY:0@?=4=S[4`6**BM9))K M:.2:$PR,,F,MDK[$BE:=%N$@SF1@6QZ+Z_GQ0!)6/?W]Q+J-I:Z4RR/O8SL1 MF-$`(Y(ZD$C"@]N<=0^-I-7GN4=S':03&+9&<-*0!GO;'';UH`E@TB(7(N[QS=W0^Z\@^6/_`'%Z+]>O MO6C5:\U"VL@//E4.W"1CEW/HJ]2:DMYFFA5WB:!V&?+?#&-41LB/YE7J423YOKE5/'>NGGG M@DTJ2:.1#`T)*NK?+C'K63X/DBM?!UM)(X2&(2LS,?N@2-UI+G0M%O\`3I[P M:4B-(C.NY?+8\9!XZ9Z_S%`'*6VDV\OPUGO#:(;D.728+\^`X!Y],9JWX6=C M;^&PN`5N;D#()XV'/\ZU?!TD3^!&2[=$MU$J,S#@*22<^O4UE>%VS9^'/NEE MNYP`WIL.:`.E\4"%I-)6[;%JUZOF`CY2=K;<^V<5I:K?1Z7I=Q>/MQ#&652= MH8XX7\3@5+>);26DBWHB-N1\XEQMQ[YKDVTWP_@4E+24`%5-4 ML5U+3IK1G*>8!M@.?P]:U(W$D:NH8!AD;E*G\CR*HZIL:XTV)B M07NLC!_NH[?TJZR9D5P3D`C&X@8)&3CUX_SF@!]%%86IS2P3:Y*C[7BTU'B( MZJ?WW/UR!^0H`UXXY8YV^=6@(^5",%#['N/;MZ]`)J`,`#.?AZ]JCFGG'VK#XV7D*+CLI\K(_\>;\ZTJ`"BFC=O.<;,#'KGG/]*=0`4444 M`%%%%`!65XGT^;5?#]W9V^WS9`I7<<`D,&Q^.,5JT4`>0WDOV7QTDDBM&(;J M,N-P)X*YY_.N[\8I);0V>LVZYDTZ8.X`Y:-N&'^?>N`\;(4\67X9MQW*7]>M`%I'61%=#E6`(/J*=6%X+N3<>'88W/[RV9 MH'YSRI_PQ6[0`4444`%%%%`!111SGVH`****`"BBB@`HHHH`H:EI,.I/$TTU MRGE,&412E0&'0_6L4:;?Z1K;:I,[ZI:A-@+G,UNI(R5&/F[YQ@X_7;UF^?3M M->YC1797C7#=,,ZJ?T-+;7LDVK7UHT>U+=8RK8^]N!SS^%`$UM=17UFMQ9R* MZ2*2CD'&>G(Z]>HIHL8(P1;*+8M)YC&%0N\]\\X!ZGGV[5R_B5)I=3U6**357\J-)42(F2 M`'&2K*>,'T^O&*UO"<"I'YL<.IIYCLS-.BPH0>@\L-C'H5%`'3T444`%%%%` M!1110`4444`GMI%QADM@'4&0)SC=AV`_/'ZU9U.U@EL9Y9H8?, M6%L.R!MO![D4`>=66I3IX"N;*:PNGMV)$=S& M/PSD?_JH`ZGQ656&P>Y7?8+=*;I2N5VX."W'W0V,UMQLCQJ\;*R,`5*G(([8 MJ.ZG,"(1!+/O<(1&`<9XR$^(XEMU5 MIUA87++_``IP4#>Y/3VS6I45O;6]JFRV@BA0G.V-`H_2I:`"BBB@#@/^:O?Y M_P"?>BC_`)J]_G_GWHH`]`I*6DH`*H:[=R6.CW-S"<.BC#;=VS)`W8]!G/X5 M?I'571D=0RL,$$9!%`&!XCT>S;PU=B4,TD$#.L[-F0LH)&6[Y/;W^E26T(L! MI^/ZFNIH`S=3<#4-(4D`FZ8@$\_ZF3_&M*LS4V4:KHR'&XW#D M>N!#)G^8K3H`*S+O39;F74_WBJMW:+;H2,[2/,R2._WZMW]Y'86?RJW.T^)<$Q>,KCQH6O9I/*@5>-XDX/XCG\Q0!UW@,9\/F7RR@FGDD&5QN!/7],?A7 M25!9VRVEE!;)]V%%08]A4]`!1110`4444`%%%%`!1110`44BLKC*,&&2,@YY M!P?UI:`"BBB@#+\2PRW&BR1PQM(YDB.U1DX$BD_H#4UO%,FL7LC)B)XXMC<< MD;L_TJ47L+7[629>5$WR;1D1@]-Q[$\X'M5F@`(R"/7THHR/RHH`S](8LU_G M/%VXZ>PJ'Q$`8;#()'V^#I_OBJOAZX>"ZU&QFCD*1WCA+AN0Q;#;3SG.#UZ& MKUYJ%H-7L=.>13WX\^E:R74;RB(K(DA`.&C('3.,XP3]#5>[M+Q9I+C3IX8Y9%`9)XRR,1G! MX((//O\`2IK<7HA5N1^7\J`.0T#7I=-\ M&RK+IT[VX9XUN%8;VTDL?3I0!8T M7Q!'JK)&]I/:RR1>=&)`"LB>JD=<9'YUL5A:5I\YAT=Y3$([&WV@QRE][%=O MIC&.>IK=H`****`.`_YJ]_G_`)]Z*/\`FKW^?^?>B@#T"DI:2@`K/UT!M)E1 MMP21D1RIP0K.H8Y]@2:T*;*8Q$YF*B,*=Y?ICOGVH`Q?%%AIY\-70FACC2WB M9X2JA=C@?+C'O@464%K;P:/+;K'OG(5I1RTH\IV.6ZGD9_"JVH#P^]BK7C3B MV?\`U9G,_DY[8!.._&.HY'%:=@^BM/Y>GO8-,NYML+(67/4X'2@#2KGO%:22 MW.AQJ,I_:,;-D>F3_+-=#7/^,,M%I,8=D$FIP*2O!'7I0!2\70O-XD\.(6S$ M;@DKMR,@J>?J/ZUUM<]XG4/J.@KL4G[<#DL1C`)_S]/>NAH`Q]3V'Q#HH:8H MP:8JF>'_`'>#Q[9K8K)U/R_[=T;>"6WRA".Q\L]?PS6M0!7OX'N;1HXBHDRK M*6Z95@PS[<4Q[IC&8_*FCG88&V,L%)XSN^Z?7K5IV"(SG)"C)V@D_@!R:JG4 M8`^WR[K/_7K+CKCKMH`QK30M6T_[+#!JIN+42K)<+./G)SD[6]"<<'WYYKI* MJ2WI06WV:1XIE;]\HRJ,.<-Z`CH?7BK=`&;J[%9M,'S?->*..GW'//M_] M:IM2BF>&-X%+M#*LAC!`\P#MSQGN,]P*BU8L)M-"@$&[&<]0-CGC\JT:`,^> MZEN8&ALUG@N)%(622`[8C@OOGGT-)#;ZBMQ;KU77;C3_%6G6!6,VEVFTDCYMY)`Y_+\S70UR/Q% MM9#I=MJ,!VR64P;=CD`D<_F%H`Y3QDDLOB74;FW7_CV>,O(C2R\57UK.I66*!U8=N'6@#TBBBB@`HHHH`*0;MY!`VX&#GG/?C M\J6B@`HHHH`****`$557.U0,G)P.II:**`"BBB@#$M91IFKZ@MXGEQ7:KI M]C(D=W>P0.YX5Y`#]?8>]5KOQ#I=O8SW$=_9S&)"0BSK\S8)"\9Y./2@!V@F MZ>WN9KV![>66Y=O+=MQ4<`<]^G;BM.JVG7T.I6$-Y;DF*5=PR,$>H_.K-`&? M8)YKZDDRLRO+8K"\15VRRW%O=22]-JX_3%1ZO)IK75C;W\UL"92RQ3*&W?(P[].O7\.]` M%.[\1W"W\R:;IQU&TMDS/-#(!M;KM']X@=ASS4_A24W&F37#1RQ&>ZEEV2=5 MRQ.*9J&M:5XN.^![_\`UJUK*[AOK.*ZMW#Q2KN4B@"> MBBB@`HHHH`****`"BBF)-')))&C@O$0'7NN1D?H:`,OPHQ?P];2%]_F&1PWL M78C]#6E<@M:R@=2A'Z5F>$E1?#-CY88*R%OF.3RQ)R?QK3N_^/2;_KFW\J`, M#P($3P?;,V%4F0N6/'WSSS["L+PLQ73-`(?9_I\HSC/5&&/QZ?C6WX)V0>"H M)64LN)79>N<,PQ^0K$\+QF;3O#X:0A5OICMQGHC$?R/YT`=GJU])9QVZP(C3 M7,RPQ^82%!()R<>P-8NL:MJ?ALQ7=_-'?6LK&,QQ0^44;&1R2<]"*U]8L[B] MB@:RG6*YM9UF3=]UB`05;'."&-9VO:'>^(EBM[N2&TMHB7_=,96=\8'4*`!D M^OX4`0>&-0NH(-+M+QK=X[V%W@:($%2,,5;/L3T]/QKJ:YGPYI-[Y>FW6HSP M/':6^+6.%2,;ACBC_`)J]_G_GWHH` M]`I*6DH`*S?$,?FZ1(&!:)7C>91_%&'4N/\`OD&M*B@#&\4SV8\,7DEPT3Q2 M0GR\G(9B/DQZ\X/%5M+FLKJS\/\`V62(/&`WEHX9E'DL&![\$C/OBM1=&TQ" M2FGVJDG)*Q*#V]O85=557.U0,G)P.IH`6L/Q+"DT^B[LY748R"/96/\`,"MR ML/Q*Q$^BJBEF.HQG`..-K9_G0!%XD9?[;\/H<9-RS#/LO_UQ70US?B%U7Q1X M<$@RIDFZ`9SM7'X9-=)0!G7K`:SIHYR?-[?[-:-9]Y_R%]._[:_^@UH4`(S! M%+,0J@9))X`I(I8YHEEB=9(W&593D$>H-4M`8O,C\T$9'E^8N_(]-N M?E;BK=S.MM`T MK)(ZJ1D1H7;DXZ#D_A0!(&!)`(R.H]*6N6L]4TZYU?4YHH[GSE*JMQ':2LRY M0#!`4XP0>"*UM)U1KQW@FMKF.6/.))+=XTE`(^8;AQU'!_6@#3HHHH`****` M"BBB@`J&\M8;ZSEM;A=T4JE6'L?ZU-10!Q7PV0P0:G;,/GBG`9L<'@CK^'ZU M92,VOQ-D8`8N[+WY&@#IZ***`"BBB@`HHH_"@`HHHH`****`"BBB@`HHHH`1 MF7(5B,MT![T*H50J@`#H`*P=#GAN]ON:Q-6A>\\5V5K M%J%W"OV=Y)HX)BH`!PI(Z6*,2%E(*GU`/J./SH`TJ@O6E M2SFDM_+$RH2AD!*Y]\HKH9M9@.3L;^5`%#PQ)YWAVPDVHFZ(?+&N%'T% M7[O_`(])O^N;?RK,\(_\BOI__7(?SJ]J;%-+NV4X(A<@_P#`30!A^$RO_"!P ML4&/*ER!QG#-67X69!I_AE`Y9FN+EB/[N$DX_4'\:T/"@*_#]#RV8IB`/]YO M6LCPJ&2'PR6R%:>Z()_W"./QS0!U6O--+)I]E#+)"+JX*R/&VUM@1F(![=*Q MO%<4OARV35-'E,+DB&578N'!'!PQ/(Q72:GIT>I01H\LL+Q2"6.2(@,C#(SS MQT)_.JVHZ!:ZJZ_VC+-I'XBNLK'T#2H;6TM+@W$MU(+<(DDC9`0X/RCL.GO@"M1[ MB".5(I)HTD?[J,P!;Z#OU'YT`24444`)EF;6O#ZQ*77[42R]N`#GUR!N-='63K;1+?:-Y MA^8WF``>?]6X_+.,T`4O$@F/3':I M[\$VI.W<%=&88S\H8$_H#3HKRVG@2:*XB>)R`KJX()/09]:`*]IJFFZBRBVN MH)F!W*H(W=^0#SZ\_6KU4(=,AMK2VAC17-L^8F(&4!/./^`DBK]`%6\B@EEL M_.D*,L^Z(`XW,%;C\MQ_"K59NJE5O=)9V8?Z60,=,F*3K6E0!''#'%)*Z+AI M6#.<]3@#/Y`#\*5Y8TDCC=U5Y"0BD\M@9./PH19%.&;>O)W'@CVXX/?T[=>M M8.HWT1\4:,(W:1SYJ-!]UDRH(W$X=;9F^SQ;@`"&5>G&?OG.?P[4`=Q1110`4444`% M%%%`!1110`4444`%%%%`!1110!A:G8V-UK5N89V@U$%7D$+LADB!Y#E>WIGT MQ2K<^'])U&6&2ZACO)!^\:XE+OCJ`68G`QCC-2Z9)LUK5(;CY;AY%DC)_CBV M`#'K@AL^F?>LN^1KGQFESID-O=&WMMMV"0<_C65!J>FZM;26]\D4 MAZCN#^-)X1D>7P]`68L@:18V9B24#D+U]N/H*`-D@$$$9!Z M@TQF6)1D!4'?(`6GT4`4]1TJQU146^MHYPF=N[JN>N#^`K*/@CP^9BYLC@C[ M@E<#/KU_^M6J]U-;WB17$:M#,^V.5.-IP3M8$^W!'7I@=[E`'.R>!_#[H56R M9"?XEF?(_,FG6_@K0K<^.OEM_*@#-\(_\BOI_P#UR'\ZOZDQ33+MP`2L+G!Z?=-4/"/_ M`"*^G_\`7(?SJ_J85M,NU=BBF%P6`S@;3SB@#"\)G9X#A(.<12D=OXFK'\+, M#;^&`'+8FN@1C[ORMQ_7\:T_#<9E^'`C!P7MYU!],L]97AFW00>%GVY9YKIB M2Q_ND?A]T<>WO0!Z!02`"2<`=2:**`(+&19;"WDC!"/$K+DY."!63?6UFVKR MC5X8)+>X1!`\PR%9=V5R>AYR/7)]*VH(Q#!'$HPJ*%'T`K'UZ2Y\Y(#-C!LJ#N#8R M.>@Z8J[IL^H'5;RTN9(I88`I5PA5SN&1D]#T/`'I2Z':V;:83'8V\2S%@X2$ M*LH!(#8YX/4`]C5ZTLK6Q1DM+>.!6.2(U`!-`'##/_"WN?\`/[BBE_YJ]_G_ M`)]Z*`/0*2EI*`"F--$C[&D16QG:6`./6GTUXHY/]8BMP1\PSQZ?H*`*U_?6 MUI!(\UPD93#8+`'J,#OP3@=.]6@P.<$'!P<=JIW.EZ;/"8[BSMS&Q`P4`YSQ M^M3BSM54J+:$`]0$'/\`G)_.@":N<\42Q1:MH)ED5!]J)^9L=O\`ZX_.MS[% M:?-_HL/S=?W8Y[TW^SK'Y?\`0[?Y>G[I>/TH`P/%+)%XB\.32.@43NF">?7DYK6>RM721'MH664`2`Q@AP.F?6@"*\U2SLK>YFFF7;:@&4#EE MSTX]\\5'<26%B\5T]NBW-PPC3;&HD=CSMS^?4XJIK?AJQU*RE2&TM8KHX*2^ M6!R"."1S@@8K$GL(XM9TN3_A&I1)&")EC4/%@\*0V<9#<\X(&<]C0!TZ:FBW MD-I=Q-;3SAC$K$$/CJ`1W&>G\ZOUAW^E0ZW+:236`A$,WF.TH4.P`/'!/!., MY(Z5K&SMC$T7D1A&`!4+C.#GM[T`4-;*_:=(RP!^W#`/?]V_^-:M<]KFDV!G MT?,"KMO0!@9SE6)!_%1^5:FV49RMM'GW&?YT`6%='+!65BIPP!S@^].K-D\ M/:/)*96TVVWDY+",`Y]>*JZA8:+IEJ;FX$T2@A08YY0S$\`#:V230!N4C,%4 MLG7FH[_P`-Z_:64]Q+ MXFF\N.,LVZ:0`\=.M`'1>"]__"*6)D?>Q5CNSGJY(_PKSS5KA+?QI<7H:/;! M?*VT'.<-DGCZ<_6LZRTS5=1@"VEKJB<9MK*\E7^\8O*'U_>%<_A4T4MV\P$EJD<7.6,V6]L`#'Z_G7GZ: M!XQ&88M1EVQL$.V\8!>`?RP14P\.>,E"NNL,Q.>/MCG'Y\4`>AT5YS_PC_C4 M2D_VE-QSG[8V"?3%/CT/QK,PCEU&6%"9,S M%OF."&;V(&..G?--D^'.H_9U*7-H90.5RPW?C_\`6%`'70W>L:G+9RV]O]@L M_,WR-*59Y4[`+CC/'.* MKFU>&YUE)8\?ZLSR$/ST.1_.L<^!?$$;`I!&3C.5F48]NM`'H46MXO+:UNH` MC7;-Y$T<@>*10,@ANN<8XQWXJ]!>Q3W4]NHD62$X8.A4$>H/0*P'^D-F/DXQM;`XQTK4L]%@MH1'YMX=O`)O93D=N,@#\!0!H*[' MK$Z_,1R1T]>O3]:?5$Z3;%`OF7F!_P!/LV?SW5:AA6",1H7('=W9S^9)-`$E M!Z=,U6EL8IFW-)<*=V[Y+B1>^>@/3VIKZ;`X8&2Z&XY.+N4?EAN/PH`H-J&D MZMJ5QIL]I]H-GR\DT`:)#Z9/0]>N.AJMIFH0PQ2/H^@R-I^]OW]N8U\S;P2% M)!;G('^169>^%Y;275F@AO+J*\C)C,5T0RM@\."1O&3U.3CMFD\,V-Q!I7V* MZL]92X!(^2$Y+#34CN[Z[2;<6*6 M]RRQCTX[U)/X/C-Y)=VFJZC;33,/-*S9W+W&>N<="2<4`6O"N/LVH*I)5=0G M"\YXW=JY?Q0MIHGCBPU#R0D+@2R[!DEMQRV/7D&KGA+09);"Y=M3U&VD%U(C MQPSKP023>[=,Y]\D4`>F1PZ/K<4= M\L%K>`@;96C#$8YQR,CZ5HJH10J@*H&``.`*\ZTSPCXFL8Y1!?BU!7(2.8X9 MN.HQC\:W]-\.:DEI%]KUV_24\ND;@@$G)Y(.:`.GHK%.D:JH<0>(;E<_=\R" M-\?I_A0NFZX-H/B`,`:`-BBN0E?Q3I4EA:M=64\+D MH;B5'/..`YZ_0_G6L/\`A)OLYS_9'G]C^\V_X^M`&S4-ZVVRN&P3B-C@#)/% M8O\`Q5__`%`__(U0WJ^+WLIU+:,@,;`M'YNX#';/&:`-#PHI3PQIP;KY(/7/ M7FK>J_\`()O?^N#_`/H)JEX0&/"VGXS_`*KN?JW@[3YY]'T.[WIY=M+.VT]=K!EP/QYYH`[*BBB@"&S)-G`2&!,: MY#``CCOCBLS5#,=6@2)+B=#"QDABG\H@`_>4[ERB<3CKQ/ M]\]6*`.`_YJ]_G_`)]Z*/\`FKW^?^?> MB@#T"DI:2@`HHHH`9+)Y:!L`Y95Y..I`_K3Z"`>HS10`4444`%%%%`&5?E!X MBTD%@PN?Z?E6K61J0;_A(M&8)N7]^I(/WU:]`#7+!" M4`9NP8X'YX-.I&8(I9N`!DTR&>*XC$D$B2(21N0Y&1P10!)15/4[B>WBA-NJ MEI)XXV+`D*I8`G^GXU<&<#/![XH`RM:)%UI&/^?X?^BI*T9S*J`PJK-O4$,< M?+N&X_@,FL[6CBYTC@'-\/P_=R58J"21F"1QEMN]B<`9[4`6:*P] M2N=E7UO7BO(+6[1%>="8W1LAF4988(XX MY'7@'IW`+M%%%`!1110`56N+"UNKB">XA622#)C+!S5FB@`I&4. MI5@&4C!!'!%+10!@6VO>'-+)TZ&[B@\J1E*;6`5LDGG&/6O/O"MG/JOB9)T2 M-EAD^T2^:Q``#>OKS79Z9X(M`]W/JJ?:)YY),`-\JJ2<$?[7?VJ[X<\*0>'[ MNYGBN9)O-4*H90-HZ\^OZ4`;%L+H3W/V@H8S(#"5/(7:!@C'7()_&IP,#C/X MFEHH`****`"BBB@`HHHH`*1@2I"G!(X/I2T4`&1^=%%%`!1110!1M9=1;4;Q M+F"%+-2OV=U;YG&/FR,GOCT_&KU<]]IUS4]1N%T^6TM;&WE:+S'0R/(P'/'3 M&>.WXU%;ZUKES>W.GQ:=:FYL@//D>8A')&5VC&1D<\T`=-16?H6I_P!KZ5%> M&+RF8LKINSM()!Y[]*T*`.?T*W98[^X@W"7[?<#/%=-X._Y`K?]?,W_`*&:P-2U2^N? M&0D\/P)++#;M$7D'R3`'+`'C.#@=>M`'>45RVA>(M5OK"]FNM-5YK64(88,H M^,?-\K$\CTSS_/H-.OH-2L8KRV),4HRN>OI@_C0!9HHHH`****`$(!!!Z&FD MQP198A$0`9)X`I]-=%D1D=0R,"&!Z$4`.J*Z&;68#D[&_E21I%96\<2[A$@" M@LQ;'.!DG)[TZY8K;2LIP0A(/X4`9GA,8\,:=G'^I'0U:UF1(M&OGD8*H@?) M/^Z:K^%@H\,Z=L&!Y"]\\]_UI_B.-)/#NI*XRHMI&_$*2/U%`&/H(1OAOB0J MJ&UG#$=`,OFK?@08\(6/_;3_`-&-5+1%"_#1A&1)FTG/3N=_'Y\5<\"?\BA8 M_P#;3_T8U`'04$X&:**`(+#;]@MMC!D\I=I&>1@>O-5=2EN%O;.&WGAM_-WC M?+%OW,`"$'S#&1D_\!JY;1F&UBB8@E$"DCIP*S==\F26TM[J":X@F8_NHV"[ MG&&&X((/MT/(JY7-6FG0I$ MSZ;Y\L:,5=8YFBFC;J002%8\_P`6.N6.=7:$*I221`K9YR#C@ M]N0!0!Q__-7O\_\`/O11_P`U>_S_`,^]%`'H%)2TE`!44MS!`P6:>.-B,@.X M!(J6FNB2*5D564]F&10!#]OL_P#G[@_[^"G?;+;_`)^(>F?OCIZT?9+;"C[/ M%A/N_(/E^E#6=L[,S6\+,W4E`2:`%^TP;]GG1[N!C<,\]/SI'N[:,@27$2DC M(W.!D4@LK4*5%M"`W4>6.:YGQ9I=B;O1`MI$"UZD;*J`!D/4'\NGUH`ZJ2:* M)=TLJ(,XRS`<^E-BNK>9V6*>*1E.&"N"0?>N2\6Z/9R:KH02VB7?2RM8;VM))8HO-E&`B9QN8G`&>W)'-9VI0ZG#I<]S'J M4OVF*)I!''%'Y;$#.,%2V.WWJ`'7-IJDSVL;26TL27"RO)S&VT'.-O(/;G(^ ME:]8\=Q>V:V4DUTMW!<%(V+1A'#,.&!'&,]L=^O'.Q0!CZ\5-WHT9?:YO@P` M."0(WS^'(S]:NZI:/>6FV%U2>-UEB9AE0ZG(S['H?K5#Q%M6;2'"KYOV]$5R M,E00VX?B!C\O2IM6U-8'BL;:XB6_N'5$5N2JD\OM[X`/XT`.FAO+]!:WEO`E MLXQ/ME+%^.B\#C/!)YQT]1-PSQCO5#6;C4- M&T_[;#(U\(R!+%(J@MG`!4J!@@]L'@TZ"YU6UOK&+49+:07F]6$,97RG"[@` M23D8#<_2@#9HHHH`****`"BBB@`HHHH`****`"BBB@`HS110`4444`%%%%`! M1110`4444`%%%%`&%&FI:3=WJVU@;VUGD:>+RY55D=N65MQ'!.2",UD6VG>) M[36I-7$5I-+>KLEA$I58L`;2?7&!TR>OKFMFPGO-9DNY1=-;6:3/#$L2KO8+ MP6).<L@1I`0R@Y&02IQ[9%:%`&)X14+I,B@A@+J89' M?YS6$;:]T+QF4TRT^UPW%N[11&3:L(+`MSV&X#_OJM_PFPDT7SPRD3W$TGR] M.9&Z>W%<[:W&IZ]XJ^V6=VME"+>3[,WEAQ)&L@4Y!]3S^'XT`;<%AJUI;7^H MB5)-3N0'^S*`(@0H`7GDG'?(!XK1T*T-CHMI;,"'2,;\Y^^>6_4FL2RU/Q+? MK>".WL(GLBT3!P[>=(!G"\C`P1U]16QI-U)J>GVFHC,;31C=%NRO7K]:`-*B MBB@`HHHH`****`"JFI2M#8W4K;1$D#L2X$L:1H+:!CJQ/]:R;6>1OA@0"ULFA-DUG)YC,Z&0R[B3][>1\V0!].` M:TZS=%D9X7+QWT1XS'=?-MX_A;J1]3^5:5`'`?\`-7O\_P#/O1358-\7A4E+24`%%%%`",<*3@G`Z#O2T44`%C"YY[#/X$BNFH`Q=6/_%2:".,[YS[X\L_IR/TK:K$UV1+?5M$ MN)<*BW#H7)P%W1L/\_2MN@"*Y@CNK>2"7.R12IP<'\#VJN;*:6"6VNKD3VT@ MV$&/#E2,$%@<'ZX']:;K8N&TN1;2,%8F#H!P%(Z=*EJG?O)!);3(7*F58G M7/&UCC./4'%7*`,S6AE]-PFXB]3D_P`/#<_T_&IM4L/MD*/%L6[@;S+>1QD* MWOCL>AIFL#Y;(G&!=Q]QZU)JDLT=O&("5,DT<;..JJ6`)_I^-`&'*NH^()9] M(U&)+"*%%>5X)=S2D_=VY'"Y!/?IBM"VTS4'O;2?4KR&86>[RC%$5,A9=N6R M3VST]?:LW7]*@T6PN=9TR2:VOHEYD,K2>8"PR&#DY_QQ5RU>YL;K2HKG4))[ MB]#":)RI&1&6++@#`!`'IAJ`-ZBBB@`HHHH`****`"D1U<91@PR1D'/(."/S MI::5(*[2%&G064&3'"N`3U/#E1/#5LL1!C#2["#GCS&Q^E8<=AJND^*Y+32#`\+VK/"+DD)"A?)`QU^8 M_D16UX)C,7A.P5B"2K-QZ%V(_G6+HT,OB'6/[0OKJ0;K020BWD*>0#(ZA_P!&M+J7;YDD M8+%>A/0D4`6W###(0.1NR"1ACKPIH`B\/#'AW31DG_1 M8CS_`+HI^NKOT'45+!0;:09/0?*:;X?_`.1>TS_KTB_]`%.UT9T'41DC_19> M1U^Z:`,+3HEC^&;J!D&QF;GU(8_S-:7A!R_A;3R?^>6.N>A(K.L)$/PU9BP" M_895SD=<,/YU-\/T=?"EL7?<'=RH_NC<1C\P3^-`'2444A.`2<\>@S0`DGF; M/W6T-D?>Z8SS^F:BNH&E"21$":(EHR3@'CH?8_\`U^U/MW\RWB?CYD!XZ=*S M[?Q#ITS2"2;[+LD:,?:<1[RI(.,GU!]_:@#34[E#8(R,X/44M07$LOV4RV21 MSMU"E\!QZ`^M/@F2XB66(Y4_S'!'US0!YY8_\E7;_KK)_P"BVHHL?^2KM_UU MD_\`1;44`>D4E+24`%%%%`#)I!%#)(QP$4L3C/04^JFK*K:3=B1]B>2V]L`_ M+CGKQTJW0`5@^*]N-&W$`#5(3D_\"K>KG/&C^5;:7*0Q$>I0M\OMNH`C\81H M=0\/RD_O%U"-5'L2,_R%=/7.^+DS-H;\G;J<0X7U/KV^G>NBH`R-;C,^H:/" MT:/"URQ?>N1Q$^!^6?RJY$CVJL&'ZBB>".YA:*9=R-U&<=.0<]CFD=S$ZC M9F,X4;1]T^_MTJ6@"M]BC9H3(\L@@.4#MGGL3ZD>^:LT44`9VM$"*TR"2;N$ M+_WT/Z9JY3?AV^5!T"J.PQ^=6@,`#.?1U$?';I]3Z4^ M@`HHHH`****`*(TM(KB6:VN)[8S-OD6,J59NYPP(!^E4I_"NF7<5P+R-KB>X M.7N9,>;D#`P0`!C`X`Q6W10!2T>R_LW38;'?O\A=H;&-P['%7:**`,3P:FSP MIIX_V">OJQ-9L&ARV?BZX33KN2U@FMQ-)\@<\NV50GIZ]\9K7\+'=XTBAGBM;J]MTN!B8) M-N\S/4G<#@GN1BM:V@CM;6*WA!$<*!$!.<`#`J6B@`HHHH`:^[@KVY(QRW'3 M^5*C!QD'V(ST/I2TU\JKM&@9\9QTW'MS0`ZBFQR+(FY3GL?8^A]Z=0`57U%= M^G72@9W1.,9QG@U8J&[_`./.?_KFW\J`*?AQUD\.::R'(%M&OXA0#^HI?$2L MWAW4@C!3]FDY([;3D4SPNH7PUIP"E?\`1T.#[CK^/6G^(E#>'=2!&1]ED/\` MXZ:`,+3H(_\`A6+IG=NQLY]=QS^N:H:5&R?# M-T+9)LICG/KN(_G5WP.Q;PC8$DGAQR<]'84`;U(>AYQ[^E+10!7L$$>GVR*< MJL2@'\!525&TZ65Q$\]E.6>5%7=I!)]O\:O:1&ZVTCNA033/*B,,%58Y&1V)ZX]_6H]!5%L7V3^>/-8>:9&< MOC@$EBB@#T"DI:2 M@`HHHH`;(2(G()!`/(7./P[TZHKKS/LLWE9\S8VW'7..*EH`*YOQN<6>F$KO M_P")C#\G][AN*Z2N9\=8_LZPR,@W\63C[O#+BXET,!F"G4X0P`X//&3 M715R_CQ?]"TZ3)RE_'QVZ'J*ZB@#.U9V2?3-K[6_'^?2M&L[5PQF MTPA%8"\!)/\`"-CC(_'`_&M&@`HHHH`****`,_6\_8HL''^E6_X_ODK0K/UO M(LX2#@?:[?/O^^2M"@`HHHH`****`"BBB@`HHHH`****`"BBB@!I!WAMQ``( M*\8/3G_/K3J**`"BBB@`HHHH`**R-1UP6.M6&F_9GE:\)^=6^X/7'?\`PK7H M`1T61&1U#(PPRL,@CT-0VEJMI&T:.[1ELHK'(C&!\H]OY9]*GHH`**:20PZ; M,'))YS_G-.H`****`"BBB@`IDJ>9&RABC$$!QU4XQD>]/HH`Q_"3;O#-BOXUH+'_Q,99"G_+)%#8]VR,_E^E4?"CL_AC3BQR?)`_`<"IH) M7.O7D;IM400F,[L[QE\G';!X_+UH`T****`"BBB@`HHHH`,D7_`*`*?K2"31+]#G#6T@..OW30!B6.?^%:MG_H'R_^ M@M5_P>H7PMIX'_///YDU1T\@?#@EAN`L),C.,_*U7?!SB3PKI[+G`C*\^Q(_ MI0!M4$9!'KZ444`06`1=/MA%N\L1*%W=<8&,UDZZX@U"UFC-Y'.4*J\'E!&& M1\KF0@'V&<]<5KV<)M[."`G)BC5,^N!BL3Q+*LUU'&K826,/#(3CJ< MG:PQP2O<@4`:6C6S6UCB1'261VDD#JJG<3R<*2!^!-7ZIZ9+));JIL7LXT10 MB.PSC'3`/`''7GV%7*`.`_YJ]_G_`)]Z*/\`FKW^?^?>B@#T"DI:2@`HHHH` M;("T;`#)(('S%?U'3ZTZH+\R#3[DPG$OE-L/O@XZ5/0`5S7CR01:)!*V=J7< M;''H,UTM/P18::V["B_CR.W1N?\^M=3 M7-^.5)TNT([7L1/'UKI*`*.J/L-D2V`;I`??.69"C+Y;``GHP(!R/QR/PJ2D*@D''(Z&EH` M**`<@'&/8T4`%%%%`!1110`444CDJA8#=CG`H`6BHX)H[B%98FRC`$9!!_$' MD'V-24`(V8,VTE?X>#R?;.!^-244`%%%%`!1110`4UPS(P5MK$ M$!L9P?6G44`4M&L3INDVUDSB0PIMW`8S5@11"Z:8?ZTH$;YC]T$D<=.I/-2U M724MJ,\/.$AC?KZEQ_[+0!8HHHH`****`"BBB@`HHHH`*K7[XL+H@X*Q-R>W MRYJS5/5H/.TV[$9"3-`Z+)M!(R*`(_#_`/R+VF?]>D7_`*`*=KH9M!U$+]XV MLH'..=IHT(*-!TX(VY1:Q8)&,C:*-<8)H6H,5#`6TA*GO\IXH`Q-/01_#5P` M1FPE//NK'^M:/A'_`)%?3_\`KD/YUGV.?^%:MG_H'R_^@M6AX1&/"^G_`/7+ M^IH`V*S-6$R21W`:Z-NBD.ML?F4Y'S8_B'48_0UIT$@#)X%`&)IFJ'[#;N;F M.]3RE\SRSF5#@$Q#)Y@4#HN3WQC/6KU4K6Q:&Y,[M#O,8C/E1;,@=,\ MG..D4E+24` M%%%%`#91F)Q\QRI^X<'\#ZTZFR()8GC;.&!4X]Z(V5HU922I`(SG./QH`=7- M?$%MOA>4YP?-3'.#U[5TM_MG%=)7+_$16;PUM0$DSH/YUU%`&?JZ[_L0SC_2XS^636A6=K.WR[3=U M^UQ8^N[_`/76C0`4444`%%%%`!2,P498X&0/SI:*`"BD50BA5`50,``<`4M` M!1110`4444`%%%%`!1110`4444`%9EO?WMW"EQ;64+0.,C?$@-ZLN\C]2M=C5*XOK&/4[6TE=#>2[C"NW+#"Y)S MVX_.KM`!1110`4444`%%%%`!1110`4448&<]Z`"HPH^T.VU,E5&1]X\GK[<\ M?4U)3!(3.\6Q@%56WD<')/`]QC]10`^BBB@`HHHH`****`"BBB@`JO?J7T^Y M56VL8F`/H<&K%5M1_P"0;=?,5_B;?[#T_8I5?LT>%/4#:.#4'B M:=[?PYJ$L>-PA8#/OQ_6I=`.?#^FGUM8O_0!2ZZADT'447JUM(!_WR:`,VPM M_P#B@4A=P!)IYRWH&0G^M6?"1SX7T[C'[D51LP!&(RO/LQ']*`-JFR?ZI_N]#][I^/M3J@O8&N;&X@1]C2QL@?^Z2, M9H`;IN/[,M,``>2F`#D?=%6&8(I9B%4#))/`%4M/FC@T2UEFD2.-;="SNP`` MVCJ36?J.IZ/J%JUO-=/"`5E61X64*005/S+@CI]10!N@A@"""#R".]+6#97& M^ZTV6"2VBMK@.9/(Z32;05!'\)QN..3QCWK>H`\XL?\`DJ[?]=9/_1;446/_ M`"5=O^NLG_HMJ*`/2*2EI*`"BBB@`J.V(:VB*J54H"%(QCCI4E0V3.UC;M*< MR&-2Q(QDXYH`FKF_B`<>%+C@'+I^'S"NDKFOB#_R*L__`%T3_P!"H`C^(6\> M&``YW><@XXW'GT_.NIKE?'\@_P"$3W,5=FDCVLG3/7(_6NJH`S];)6RB954L M+JWV[NV94'X<$UH53U4!K1`1G_2(#C_MJE7*`"BBB@`HHHH`****`"BBB@`H MHHH`****`"BBB@`HHHH`****`"J.H30EQ;M:/=R[=XCC"Y4=,Y8@#\^U7JQ? M$$WD2VS1VVHM*=V)K&,,5''RG((P?<8XH`-&OC?0":PN?/AXS#<\2Q`]/F&< MCTSG/]ZMJL'P_&8K^[\R.XB\Q5,276-^`26QM^4+EAP.AZ]16]0`5C>(=?&A MBU`M)+I[ERB)&><\?GUJ32]>MM4U&]LH8IDDLVVN7`P3D@XP3Z53ULJ?%GAU M",_-.^.*ZNN0BN M$F^)8V(R,MEM<-DG/WN?3@C_`":Z^@`HHHH`****`"D`QP.G8>E+10`44C,$ M4LQ"J!DDG@"EH`*@29FU":`IA$BC2`/W9'!ST)JAH:PR_#K:I$<;6DJNW3!^8,?SS5OP,`/"-@ M`P88XF(QOM'M1-;*L MGDIB5`%D1@O4,.00:N:7%?06[1:A/'<,K8251M9E_P!H=,]>E6HHEA38@PN2 MWXU3O+:*^NO(D$@"PL"P4C!+(05)&,@J#QT(H`J)K>FW&IV9BO(V, MD;HH)VGG:0<'G'R$9]>*VJQXM'DDBNX;PQ;)@I7RLC$@SF0#'RDG:<#/(ZG- M,>R:6+[/!9&SN`,-<1$1HI_O#:?FZ9`(]CC/(!2D\.ZAINLW&J:'Y!VL2<\$>_3T]34=M9Z[>>+K2_U*PAA@MHW56CE!&2IYZY/7'05UE%`'-W[ MY\?Z8FUN+60[L<'.>/T_452O-/UVQ\87FK:;8Q744\*H`TH7LH(Y(YROTQ75 M/9P27L5VT8,\2,B-Z`XS_*IZ`..TW3-&]-8#&+=%_(8_I5G5O\`D$WN,9\A^O\`NF@# MG]/;/PS"%5/"5@%?>-K'..Y=B1^'2JGA4#_A7 M\0X(,,W_`*$]6/`G_(H6/_;3_P!&-0!T%%%%`"*H50JC``P!3+BXAM8C+<2+ M&@XW,<<]A]?:I*I:@$1[>[E91%;LS.6[`J1GZ\_K0`S^VK%>97F@7^_<6\D2 M_P#?3*!5\$,`000>01WJ*VNK>]A,EO*DJ9*DJ/RJ>%I,CLO^OE?Y&KM`!1110`4444`%%%%`!1110`4 M444`%%%%`!1110`4444`%%%%`!58WD(U,63*PF,7FHQ'#+G!`/J.,CW%6:R/ M$*6QB@>::XM[A7(MY[>)G9&(Z84'(/H>M`&A;7D%T7$+DE`"05(X.<,,]0<' M!'!Q4]85C?Z>Y_X^3977D+!Y,P\LIMR00&`)ZYY[8X'-:L$\[R^7+;&/"9+[ ML@G.,#^=`&7JGAM;W4?[0M;ZYL;O:$9XCPP'3(J$6OBRVSY>H:?>E=)0`A!R#DC M';UI:**`"BBB@`HHHH`****`"LY(+B+Q%+.%W6T]LJEL_==&.!CT(<_E6C3- MY$_EDI@KE1N^8X//'IR/SH`?1399$AC:25U2-!EF8X`'J33@00"#D'H10`44 M44`%%%%`!1110`5'<`M;R@9R4(X&3TJ2H;J7[/:SS,0%C1GSZ`#-`%3PXBIX M=TT*,#[+&?Q*@FI]5)&E7A!P1`__`*":S?#ES/'X4T^1K2>5Q"JA%V!BH'!& M6`QC'O45WK4US9ZC`=(OX0EH\FZ55`/!&.#U_P`*`&>'X0W@&*-P%#6TF=I( MX.XYSUI/A]+YGA2!,8\IW7Z_,3_6H/#]X[>!`8[*9A';R*""H#D;LDV$PW]AOVX"F MU91GUSO/-`&E;K,EO&MQ(LDH7#NJ[0Q]<9.*H>((9KC3O*C9UB:11.T8RXC[ ME>O(X[$]<M5O$,LT5C'Y"REFFC7$;[-V6` MVE@05SG&1WH`=:Q"+5&E>:-S/"!'M7EU7&69NA/S=ATK2KE[C3FN;RUM[.2] MTNZB!<@R^8FP@@D#<1][`['DUTL*R+#&LKB20*`SA=H8XY..WTH`\WTN42_% M1V`QBXF7\D8?THJ/1/\`DJ$G_7W<_P`GHH`]0I*6DH`****`"F0KLAC4%2`H M&5&`>.PIYS@XX/;--C#B-1(07`&XCH30`ZN:^()'_"+3`D#,B`9^M=+7.>.S M$/#^)AE&GC!`!R?FYZ>V:`%\;C_B56W_`%^1?SKHJYSQRK'1H"A4,+N(C/KG MT[UT=`%#5.6LADC-TO3Z&K]4-4+"2PVKD&Z7"3Z\`&@,X&>#WQ2$X!(!..P[TM,F#F"018\PJ=N?7'%`&3')?3I;: MK80Q.+JV5I;:68KR0"I4[2,\D'@9X]*GLM6\Z9;:]MI+.Z;.$;YD?'7:XX)] MN#[4[P__`,B]IG_7I%_Z`*S]2T_4]9OEAF9;?1^!+"6'FR%3D$$`X&=O?/%` M&R;G=<>3%&9"/OMT5>>A/KCM],XSFIZS]-LFTO-I;QK]A&6C^8ET).2#GJ,D M\YSV]ZT*`"BBB@`HHHH`****`"BBB@`HHHH`*RM3$DUVMK/=&VM)D"HR(A,D MA)RI+@CIC`QSSS6K5'5XKF:U6.V&0S@2@!2Q3!SMW_+G..O;-`$#Z2T,49MI M!-*F%?[5AO.3.=K-C/'4'!Q^-3V%D]L[N2L:,,+;Q$F-/IG^@`]JR]'O+G[6 M]G;-<7-M;RB-VNT(D4;02=V`."0,'+'KG&*Z*@`HHHH`*1E#J5;D$8-+10!S M'A&V$&I:^P!.Z](WG//4XR>N-WZUT]96CZ;<6%WJ MGY5JT`%%%%`!4<$C2P([J$V,_G0`M-D<1H6(8@=E M!)_(4ZB@#.OM9@LHA(\-RRDA0?**J"3@9+8`'N>*D@LWDN5O+PGSE'[N(.2D M61@XZ9)]3^%6V"2HR,%=#E64\@^H-06UL]J_EQ./LH7"QMDE#Z`^F.QZ?3@` M%FNFVVK636EXA>)B#@$@@CH?2H[>35;:`9BG0G]P#_!(0"!C M&?8?IV4\*SPM$S.JMU,;E6_`CD?A3+6SM[.V%O;0K'$,_*!QSU^M`$&FQ3-& MMSK.M]+-GJ(ELYO)M&4^9:@?)NZAE_NGU[& MM&@`HHHH`****`"HKL*;28.JNIC;*L,@C'0U+45U_P`>DW^XW\J`*GA__D7M M,_Z](O\`T`5/J6W^S;K?PODOGZ;35?P\`/#NFX&/]%B_]!%2ZOM_L>^\S&S[ M/)NSTQM-`&-X=8?\(!$8HR,6TORGC)RV?S/\ZE\"?\BA8_\`;3_T8U1Z"4M? M`$;L2R):R2-GGCYB:D\"?\BA8_\`;3_T8U`&[--'!$TLTB1QJ,L[L``/GS(4EL;9U/9HE/] M*`#29Q=:39SB3S/,A1BV>IP,U6\1102Z<%GEE0;UV+&"2[Y^484@GGG@C&,] MJMZ='Y.G6T?E+$5B4&-1@*<=*G9%=D9E!*'2"5_P"^@,G@\XK[A?S/+9HWV&2$YCDX!RI_'GT M.1DXJ:PE:>PMII,;Y(E9L>I`-3T`>8:)_P`E0D_Z^[G^3T4:)_R5"3_K[N?Y M/10!ZA24M)0`4444`-D=8HVD$,\>\X!P,^AZT`+XZS_9EE@C_ M`(_HL_K725SGCC_D%6O'_+[%_,UT=`&9K+LD^E*IP'O0K>X\MS_,"M.LO789 M)_[/6.9X<7B$LF,XPW'-:E`%#4[U[.6P5,8N+H0MD9X*L?Y@58MY7DFND<8$ M4H1?<;%/\R:KZI`TTNGLJL?)N@YVC.!L8<^W-2V8F%S?&4$(9P8L]U\M/_9M MU`%JFRR"*)Y&Z(I8X]J=4-VC26(4LP5\DVC2D=RP=1_(FI=)?S-(LGQC=`AQSQ\H]:KM;RGQ1%<[#Y(L MGC+]MQ=3C\@:`'Z#>2ZAHMI=S[?,FCW-M&!FM"J&@VK66AV5M(A1XX55U)S\ MV.?UJ_0`4444`%%%%`!1110`4444`9MIMU*2YEG):..9H4A).T!3@EAW)()Y M[8QW)T0`H````X`':JS:=:-<-<"+RYG&'>-BA;ZE2,_C2'3;9@5?SG4]5>=V M!_`F@"S)+'$FZ5U1?5C@5FR^(--CDCC2A-`&4=9L;/5?,D M>>W@NP`S3V\D2"0#@Y90.5XZ_P``K?!!&1R*QM3ANM5TYK&2PV/(5#.[HT:X M()86T1>[T.^&#@?9RDV?P!S^E9&MZAK&@:]]M=GN=(G(#(%W&(`FY^WIR*`.BTG5+;6+%;NTW^46*_.,'(J[7+^!)K:/1Y+9)5#1W4B! M&.&Z\<'VKJ*`"BBB@`HHHH`.::DB/NV,#M.TX['TIU,\I?-\S!#8QP3@_44` M9QD?[-;E M`!7/7\C#QQI2?,5-O+]%]_T`_*NAKF]38IX[T7:3^\AF5N.,!2>OUH`Z2N3B M?=;QE)3SKKAL'.[YVP/Y'\*W!<1VUZ8YTN9)WR!*ML[+M+$J,J"!C..<=,]Z MQ(/#-S'6?N\=,\?K]:`.KHHHH`****`"BBB@`J.XVBW ME+@E=AR!Z8J2F3;?)?>,IM.X>U`%#PYO_P"$!E*^$;`,"#ASR.Q=L5!X7`82<<02C@>C,/Z5-X$ M_P"10L?^VG_HQJ`.@HHHH`BM4$=K"BOYBJ@`?^]QUK(U47T-^YM!+.\\?[E5 MF*B%EZDJ<*5Y'4YR<>XU-/DBET^VD@7;$\2LB[=N%(&!CMQVK*\3K+&MM=Q7 M$L31ED`A7=(S-C&T8.[I]W@$'.1@4`71JL,0"26M[%@8`%J[_J@(JQ9WL%ZC M-`9"%.UM\;(0?3#`5'I4MQ+81F[!\\<.3&4R?7!]OUS5R@#S#1/^2H2?]?=S M_)Z*FT]0OQ6<#_GM*?SC8T4`>E4E+24`%%%%`","5(#%21U'44(NU%4L6P,9 M/4T.RHC.Y`51DD]A38&+P1N6#%E!W`8!XZT`/KF/B$<>'`./FG09/;KZ\?G7 M3US7Q!_Y%6?_`*Z)_P"A4`'CIRNF6(`^]?1`_J?Z5TM._X=/UH`Z:J^H?\@ZY_ZY-_(U6\/)-'H-DM MPI67R@64DDC/..>:GU0A=*O"0Q`@-]+$\,3I)#(TJG@OM!QG'7J/P%:USX?C;49-0L; MN:QNY!B1H@K*_P!5((S26FA21:PNI76I3W[.FQQ1*2R+N(#!3M`SZ_EBK'@[3Y6O\`Q#ON=U]&Y@6YZL#E@6P>Q(!_ M"MS3]/N8O&>K7LD3+;SQ1B-\\-A5!X_"H/[!U>RUF]O-)OK6.*];=(DT9)4\ MXQCKR3Z=:`,WP%I-A/#->W2+-J4-P=Q).8SVXSCKDY_PKN:R?#NCMI%AY4SQ MRSM(\C2(NW)8_P#UA^0]*UJ`"BBB@`HHHH`*HZMU7JJ:G:O=6ZF#8+B%Q+"7^Z'&1SCL02/QH`G*NL2_O!N7!9R!\V M.N?PJH-9L7NK:WBF662X=D`C8-M*J6.[!XZ50NQJVLVIL9+`6$4HVW$KSJYV M]P@7.2?4X^E4K'P3#I6N6E_I]T^R'(>.8;BV5()!&/7TH`ZNN:U:0GQUH,?& M%CG8?BA_PKHHW\Q=VUEY(PPP>#C-86I1QMXUT9V!#K#.0<\'C&,?B:`*FO:U M=V1E6Q2X^WSW'E6\$B$AD51N91TP3W_^O6E:R2G58-E[-<;XR+A"N$0@#!`Q ME3G/%/UNV-V8FLWB.I61^T0QN1\PY!!'4`\C/J!Z5DQZQ)XMM7TZSM9;<%@E M[*Q4K&O.54@_,3C&<4`=%<7T=O>VEJZL7NF8(0.!M4LF:`,OPM_R+.G?]<%_AQ_G^M6]5_P"03>?]<'_] M!-5O#8QXWRBJVMZ+! MK4(BN,856VG&=K94@X_#'T)]:`+&FK,MNWG70NE+$Q2\9*<8R0`">O0>GUJW M6'%X9@B2.2&>:TNPH$DMJVQ9#ZE#E3^(S6Q;QR10(DLS3NH^:1@`6/K@`"@# MSRQ_Y*NW_763_P!%M118_P#)5V_ZZR?^BVHH`](I*6DH`****`&R/Y<;/M9M MH)VJ,D^PI(9!-#'*H(5U##/7!%/HH`*YKX@_\BK/_P!=$_\`0JZ6N:^()_XI M2?\`WT_]"%`"^.L_V1;8)'^F1<@9/4UTE*,8^]\C\?U_"M*LS6,&[TC/\`S^^F?^64E:=`$-Q:V]UL^T6\ M4VPY7S$#;3ZC/2F32VVFVZDJL,)<+\J@*"QQD^G)Z^]236L%QS-"CGU8?7_$ MU531=-08%E$0&#`,,@$>@/2@"_535F==)O6C7:`)['FPM\G=^Z7GUX%+]CM?/\`/^S0^=_STV#=^?6EM2C6L+1` MB,HI4'L,<57FTBPGN9+B2V4S28WN"06P,#./:@"6:]@@O+>TE<++:M M1_G%Y-7T]]1?3Q=Q_:TQF(G!Z9XSUX]*NT`)@9ST/?WKF-0>*3XAZ5'O`>*W MD;'KD,,?7&3745RFM1R_\)[H\MO&K2B"3.XX!4!N_P")_$T`:4LNI:5!(L-D MVI(9':,K-AQN);#`]AG`()X["L_34N[5[(OH=Q"ZM/)*T;1D9W7'0 M5OWNH6UC%OG?!+!5102[L]6:*`"F3;O)?9G=M.,=#5;PXBIX=T MT*,#[+&?Q*@FI]3>.#P)#+)O$:6SNV#@X^8G%2> M!V=O"5@7))PXY]-[8_2JVE-L^'.XEB%LI3R,'HU7?!R+'X5T]4&`8RWXDDG] M30!M444UVV(S;2VT$X7J?I0!7THYTJS)`&8$Z=/NBF3ZI;PS21$22&$9F,:% MA$,9&<>W.!S4NG,SZ=:LX`8Q(2`,#.!VK+\1I;VUI+/]K^Q3716!I-X`;)"Y M(;C@9.1S@=:`-HR(&12ZAG^Z,\M]/6G5AWD.KQK#=6DEG=+;CF<8_.IK:4S6T4I&"Z!B!VR,T`25S7Q"_P"15G_ZZ)_Z%72US7CY/-T! M(<@>;]-O%901WGV26XND3S%895>23@]1P!ZGA@PL;4 M,"2"(5SSU[=Z`+=9OB1!)X/[ZVTA7C/.T MXH`72)?.TJT8HR,84)1A@CBL77+V4>)=-@@U&.U'E2MECE6;@889P1Q]>#71 MP_ZE/D*?*/E/\/M6/?>&;&]UJTOV$:FWR7B$8Q(?X2?H<^N:`)=-URWNK@V, M\L*7\8&](WRC^Z'N/;J*UJKQV%G%*)8[2!)!D!UC`(SUYQ5B@`HHHH`****` M"BBB@`HHHH`****`"BBB@`J)[A(ITCD*IYG$9+?>;DD8^@S^?I4M-DBCE`$B M*X!R`PS@^M`#J***`"BBB@`HHHH`****`"BBB@`J&ZEEA@9X;=[AQC$:,H)_ M%B!4U5;Z^CLEC#`O-,_EPQCJ[?T')`N0<$].#TZ_P"-`%*ZTZY?7-#N%PR6B2K. M_3.4`'ZUM51L=6M[VZGM5$D5S;DB2&488#LP[$'U%7J`"BBB@`HHHH`*SM8, MMMIM]<0AYCY+?N8APR6$C`^A"FKWA'_`)%?3_\`KD/YU1ME*?#=@"K? M\2YSP>.4)_,?SJ]X1_Y%?3_^N0_G0!L57O\`_D'W/&?W3?R-6*JZJP32KQF; M:JP.2WH-IYH`321C2+(#@>0G_H(K#\8R+;R6TD:+$O1I6*\*`>YJKX@9@T)$#N8@TL;",NI8<%7[*I M4GD_41QC(.,<8Z5/;V%K:SRS01!'E.6.3 MCKDX'09/)QU/-1:9>I<(T2V5S9F+CRY8=H'^Z1\I_`U>H`\PT3_DJ$G_`%]W M/\GHHT3_`)*A)_U]W/\`)Z*`/4*2EI*`"BBD+!<;B!DXYH`PO$*R6.@ZA]='7.>/'$7A\2[=S1W$;*.>H/_ZZ`$\; M221VVEF$$O\`VC$5P,\C=@8^M=)7,^.G:.TTN5#ATU&(J?0X:NFH`RM4D8:U MHL8/RM/(Q^HA?'\S6K6/K$B1ZSH9<`9N)`&/8F)@!^)(K8H`S="_>6;W$C;I MYI7\UB,$$,5VX[8`QC_&H=2\0V5B+R)Y&CF@C8J67Y78+NVANF[IQUYJE`%L*%0*@"@#``'2L2_U+4M,@F:YM3/$H)6YMQG M&.?G0G(]R,_A6O:R&:TAE;JZ*Q_$54&N:6;D6XO[?S2<`;QR?0'H:`*EQJD. MJ>'3=Z?-G4VR/GEF)&``,^I]JKV::Y+XHM/[4MXC%:P28N(,['+8]>AX'']* MZ.UN8+RV2XMI5EBD&593P:K1ZDIU5]/FA>&7;YD3-RLJC&<'U!/(_&@"]7-$ M+-\1P3D@H`NZI9K=^(-*,M MOYT"17&_W//6HPMSX>"QV]O+>::6PJ1C=+!G).!_$OZCWK=K%MO$ M"OJ5U:W%K+###*T:W6,Q$@`D,W\)Y[\4`5S9W5YXKMM4MH3;V\4+1RO,NUI> M3P%Z^AR<5T5`((R.110`4444`%%%%`!5>_(&GW)9=RB)LKC.>#Q5BJNID#2[ MLL-P$+Y'K\IH`=I__(.MO^N2_P`A5;Q#O/A[41&F]FMI!C..JD5-I,@ETBRD M!R'@1@<8ZJ*;K4HAT2_E(!V6\C8/?Y3Q0!B2E8_AL,*5!T]>,=RHY_,UI^%U M9?#6G!U"GR%.!Z$9!_+FJLD*-X!$=QG:NF@ML()XC!X[=JO>'6#^'=-(SC[+ M&.1CHH%`&C5758UETJ\C?E7@=3]"IJU44UQ;Q86>:)-W`#L!G/UH`H>'[V#5 M=)M;R,$NB>6=RX*L,!OY57\0"WN)8K*Y6ZD6>*0+'`#UP!N/(SC/3GUQ5N[U M2QL%`0K)-,V(X(<%Y&^GX=3P*SXK'5M529-7E2V19%>+[.@WH>#\KGTR!G&< MANW4`T-`"KI,2+_S7[W,/\`"\L2MM]F M"@'_`(%S[@5H:=?"]B;*JDT;;9$#!@#Z@]P>H/\`(\4`>=Z)_P`E0D_Z^[G^ M3T4:)_R5"3_K[N?Y/10!ZA24M)0`4444`%%%%`!7.^-P3I%O@D?Z9%DCMS71 M5S/Q`:0>'E6(99KB,`>O)('Y@4`+XX"M9Z8';:AU&(,V,X&&YKI:YGQTN;#3 MY`JGR[^(G/IS_P#6KIJ`,C5C_P`3S0U(X,TI_*)JUZR-5!.O:(0"<2RD^W[I MJUZ`.2\.V<]II%OJNG!G>Y7S+JV)_P!:=Q^92?NL`3QT/'UK1U;4;._\,WS1 MR`L\+JL;##B3&`NWJ&W8XJ_IKQ[)8+>V,%O;N8DR-N2"]6&M;=[A+ MAX(FG0860H"RCT!ZB@!;8R&VB,W^L*#?GUQS537F*:!J3*2K"UE((/(.PU?J MEK0=M$OUC^^;:0+]=IH`CO=Y\-W'V,N7^R-Y1488G9QQZ]*X,:[H3WNE+-`\ MEI;61@D#Q`G<1Z?GR/6O1;5@FG0L,L!$I^5>3QV']*I)HND7- MT6T_-R=R]">>_2@#AK*:X$!M[30G.GW%TK6EPT>)(OG!'S M8N.F>U`'$6MUXCL=3NTL+"W$<;AY;)'!!R.73H=IQV[]NM;>E)JNJ:\FIZC8 M_8(;:%HXXR^YG+'D_@`.W_UMR]LENO*<-Y<\+;HI0.5/@#=NQK/> M6\4DEU*6WVQ?)S@L/F7@]LCI723)<--`T,J)&K'S59QSBIJ`,?P[I M%WHUL;:?4C>0`#RU:+:8_8'<>/:MBBB@!LF_RV\L*7P=H8X&>V:<#D`XQ[&B MF[%W[\#=C&?:@!U%`.:*`"JFJ_\`()O?^N#_`/H)JW5/6=W]BWVP`M]GDQGI MG::`'Z9_R"[3Y=O[E/E';Y1Q57Q+G_A&]2VJ6/V9^`VWC!R?_K=^E6[`8T^V M!X/E+_(53\3D+X;U(LY0?9W&1].GX]/QH`IRCR_AZ1(?+(TL`YXY\K&.?RK3 MT6W^RZ+90JO=6%G>[?M=I!<;?N^;&'Q],U8JKJK2II5XT!(E6!RA4X. M[:<8/UH`H7GART/ESZ:B6%Y!_JI(5V@_[+`?>4]Z;8:GJ=[*MM/8KI]PJLSF M7]XK8('RX(]>N>/?.:73KF=M0L(3(S1'31(<]VR@R??&:EU^UAODL[29<>?/ ML$B\,@V,QP>V0I7\:`+]G,UQ:12L`"ZYXZ'W'L>M2A0"2``6.3@=35%+?4+: M$)%=17&T8`GCVD_\"7`'_?-/M;V62?[/=6CV\VTL,,'1P,`X8>Y'4`T`>>:) M_P`E0D_Z^[G^3T4:)_R5"3_K[N?Y/10!ZA24M)0`4444`07Q`L+@E0P$3<'H M>#4L2A(D09PJ@#<1L]QB%_\:U:RM4V_P!LZ+DG?Y\F!CMY+Y_I M6K0!6_M"U^SSW'G#R8"RR/@X!'7ZX]N_'6LNW\03-=?Z5IEU;V4LFR&YD4#' M`^^N2S1?.D1`SN[`D*">!@=^N:2SN+FVU^/2 MM1=;M_(\ZWN_*"N.<,IQQV[=NM-.F:[;ZS/?6MU82":)4=)(W0,5SC."<8!Z MY_`5HV.GS+>MJ%_,DEVT?D@1*5C1,YX!).3QD^PH`O1,[)F2/RV!QC.1]0?2 MN;MG#?$F[&/N:>!_X\I_K73UR]LNWXDW9PPW:>#SW^91Q^5`&OJ]U=1FWM+` M*+FY8@2.A9(U`RS']`!ZFLC4DU^PNK)EUH20W%PL,@:U0!-W3'?VZ^E;U]9F MY:"6.3RI[=]\;E=PY!!!&1D$'U':H397%VT)U"2+$,BRJD((RPSU)/(Y!Q@< MCJ:`&65UTS_`*](O_0!6?<(!\/V0%'"Z:,,1P<1]1_2M#P__P`B]IG_`%Z1?^@" M@#0JGK#,NC7S1[MXMY"NT9.=IZ"KE87B+Q"FEJ]O#:/>W'E-(\:C*QI_><]A M0`:5:W:ZA93R1A8%TQ(R0W_+3()&/H!S]:7Q3;/=6MJ$LI;SR9UF,:!<,!D$ M')'9CC&>16V,X&<9[XK-UB^LH[.XAGNVCBDT(@_$^0CH;JY_D]%`'J-)2TE`!1110`V M1E6-F?[H!)XSQ]*=399%BB>1_NHI8X]!3J`"N;\=.%TRR!S\]]$!^I_I725S MWC%4:UTP.I?_`(F,.%!P6//'Y9H`A\8#_3_#YR.-1C&._45T]@@? MZLZE'NXR,YX_F:Z2@#)U0`Z[HI+8(DE(&.O[IN/\^E:U9.J'_B>Z+P#^\EZ] MOW3=*UJ`*ME>"]\YXT_<(Y1)-P(DQPQ'L""/PJIYVG M`J73K8V6G6MH7WF"%(]V,9V@#/Z4W5(1<:5>0L=JR0.A.<8!4B@!D,XMM$2= MAD16P MNK236I19%!^4%<`-[@'KWQ6!I.I:GIFG#3XKJ&YU"!C%]@D@;>,$XVN"/EVX M.2,8[T`17.J7%DHU?0$NY=,@81RFYN&9''3"HWS`#(Y]3T(KOH)5G@CF3[DB MAESZ$9KSJ;1/%+6XT1MHLB^XO"%\LAGR22<'`)SC%>C1QI%$D<:A40!54=`! MT%`#J***`"BBB@`R,X[T444`%%%%`!1110`4444`%%%%`!1110`4444`%%%% M`!1110`4444`%9FJ7%TFIZ7;6\JQ1SRL96P"Q"KNV@'UQR>H[5IU1U72H-5@ M2.9Y8FC1V`;ENH`!`IVF& MZT_63I,UU+>0-;F>*6U`%ZN6$(E^)3.68&*PWC!Z_ M-C!]N:ZFN7-P(?B0(@R_O[':01@Y!)X_`?YQ0!>U.YDO-8AT:VN)(,Q-/O&>#GM6KK&FS MW4EM=6$R07MLV49P2KJ?O(V.QX_*LTZ/>ZQ=&XU2\\BXM'Q;I:\*AX.\YY;/ M`QV&:`+MI<7=OKW]F7$S7,36OGK-(%5@P;:5PH`QR#T_.MBJ-KIQBNQ>7,[7 M%WY7D[]NU0N[/"]NWY5>H`****`"BBB@`JEK+A-%U!@1\EO(3GM\I-7:S?$$ M(ET+40KB)FMG!DQV`)P?;K^=`%ZVC\JVBCY^1`O/L*S?%2R/X9U$1#+>0Q/. M.!R?TS6I&P>-75@P8`@CH:RO%BEO#&H@#_EB30!2U2&2'X>M"Z,LD=BBLI'( M(49S6OHPQHM@-NW%O'\OI\HXK)UE0W@"0'@?8T/+%N@!Z]ZUM%).B6!)W'[- M'DXQGY10!=KD?%%PFC75_\`<=_RKHK>YTVUL@]M);A/+W@*R@L`* MDT?4X-8TV*]M\A7'*GJK=Q^%`&)9:E:IJDE[%:?9;!E96N(T?;,<\%E"@*1S M\Q]<=ZZ9'61%>-@Z,`593D$>HK(TVQ@N+%"%>VN(&:%I(6V,2A*Y/8Y`!P0> MHJUIVFFQGN)3.TAGVY7:%48SS@<9.>3WP*`/.?#/_)15_P"N\_\`Z"]%'AG_ M`)**O_7>?_T%Z*`/5J2EI*`"BBB@!DP0PN)-NS:=VXX&.^:?2.2J,54L0,A1 MW]J6@`K"\5?=TC@'_B9P?AR:W:PO%6=FDXS_`,A.#./J>M`#?%'RW.AREOE& MHQH4(X)8'!^H_K6_7.>+2_VO0D#[4.HQE@>Y!X_K71T`9>HN%UO2`3C4PS&:4`AQ]X*`#G'J2,TNG"YTZW^QR M6SRA';RI(R-I4DD9YR",X/'TS1I=KJ-I#>>?]E:6>5IDVLVU21]T\<@8'/?T M]0#3CD26-9(V#(X#*PZ$'O3+I&EM)HT^^R,J_4BDLX/LME!;\?NHU3@8'`Q2 MW2>;:S1\C>C+P,GD>E`%2Q='\.V[JS1HUHI#`\J-@YKE_#YUS2-%-\_V:YLY M(#=ON8^;P`<%O=?KTQQ74:5`K>';.W+$J;1$+#C(V`9KCX-%\6VMI)HL30O8 MR*R&9V7:@/7;SNQCVZD_6@"Y<>,)]2TZ]ETA8X1`@SYK?ON>K*O0X^M=I7&0 M>'+BSTNWTJ2QAN6\\.MZA`\KD$DYYSP1QP>.E=G0`4444`%%%%`!1110`444 M4`%%%%`!1110`4444`%%%!SVH`****`"BBB@`HHHH`****`"L37+N:+5M'M$ MF6"&XG)D=N-VW!5,_P"T3^./P.W574=/MM3LWM;N,/&W0]U/8@]B*`,\6J:K MK%V;MY##:,L26N_"$[0V]@#SG<`,]-I_!;(QV'B"33('?RI+;[0L;-D1$-M. M,\X.>GM56T\)"SN_M4.L:D)BNQF:16++C&.5/X>E:]AIT-AYC(TDLTN#)-,V MYWP,#)_H.*`+E1WC5]FGAE)&=IW@9'H<9KIZP(,GQW=\J`+!!C') M^?K_`)]J`)=45[_7;/36D>.V6)[F4(Q4RX(4*<=LMD^M8/B#23INMZ>-$NFL M)=09HI/G)!`P00#_`)Z5U6H:=]LFMKB.9H+BVH$*&(MI#@]_E-`%J%#'!&C')50" M?7BLSQ6[)X8U$J<'R6'3L>#6G#()H4E7HZAA^-9?BW_D5]1S_P`\30!3U<(/ M`#B+/EBR3;D8XP,<5JZ&FS0M/0\E;:,?^.BLK6./`$F3N_T-.>.>!Z<5JZ&Y MDT+3W/5K:,_^.B@"]6=K]M#>;;1W#)!(45USSM.,>A]Q6C5/5KB&WTVY M,TJ1YA?&YL9X[4`-MM-L3:PYL[8_NP,^4OI]*MQ11PQK'$BQHO15&`/PKA/# M^K/H.CV\T^H6]Y:3)O,'F!9H3G!"@GYA[<>U=M87UMJ-HEU9RB6%^C#^1'8T M`-CA\C4)I0?DN0I*_P"VHQG\5`_[YJU110!Y5X9_Y**O_7>?_P!!>BCPS_R4 M5?\`KO/_`.@O10!ZM24M)0`4444`07JS-93K;$"@C((SCW%% M`!6'XJW>3INT@-_:,&"1D#YJW*P_%3!(=-9B`HU&`DDX`&Z@"#Q:[&ZT&%5S MNU*-R?\`=_\`UUT=<[XN13+H10!G>'<_\([INX`'[+'T.>-HQ6C6;X=8GP_8!EVE(%C(]U&W^E:5`!2,Z MIC>P7)P,G&3Z4M(RAE*G.",<'!_.@!:***`"BBB@`HHHH`****`"BBB@`HHH MH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BH3.J7"P.>F?:IJ`"L"W+_\`"=W@`&S["F3WSN./ZUOUBPA1XTN=HP38Q[O<[V_IB@#: MHHHH`*#G''6BB@`!SVQ1110`4444`%4M;;9H>H-C.+:0X]?E-7:J:OG^Q[[; MC/V>3&?]TT`26`(T^V!&"(ER#]!6?XM./"^HX_YXFM*T8-:0L&9@8U(+]3QW M]ZS?%HSX7U$;@O[DG)!_*@#.O<_\*U7/_0/C_P#05K8\/`#P]IF/^?6+_P!` M%9MU&DOP]*IN"#3E9`'A[3,?\^L7_H`H`T*R/$LFFPZ5-)J M0@.8V6/S%!)..B^_TK7KF=5>&?^2BK_UWG_\`07HH\,_\E%7_`*[S_P#H+T4`>K4E+24`%%%%`",<*3QP M.YQ2T$`@@C(/4&B@`K!\7R"&RL92NX)?PL1ZX-;U87BV016NGR-T34(&/X-0 M!!XOD(N-!CV_*VIQ,3Z$'_ZY_*NDKG?&0D,.D^2/W@U.':3T!^;&?QQ714`9 MFK`_;M(90=PO"/P,4F:TZS=7WBYTID&=MY\WL#'(/ZUI4`1LCF9764A`I!CP M,'ISGKD?ES4E%%`!1110!F^'"AT"R\M2J^7C#=?QK2K)\*,7\,Z>QQGR1^-: MU`!1110`4444`%%%%`!1110`4444`%%%%`#5D1G9`P++C<.XSTIU&!G..?6B M@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`*9O/G>64;&W(?M]/K3Z*` M"L&V+'QQ>[CD+91A?8;C_7-;U#C)(Q@X]*UM-U*SU6U6YLIEE M0\''53Z$=C6*(RWQ&P[_\`UNM`&CJ_B"ST6`O>E]X*@1H!N?/=03TZ_E]*-*\2:5J[B.SN@9B" M?*<%6X^O7\*S9?%.BW.8=1+V-Y;MG;-'N,3CNI`(/]16+J>JV?B'7](.C1.; MU)LR2XVX0')&>XQD_P#Z\4`>A52UI2^B7Z`[2UM(`?3Y35VJFKG;H]\<$XMY M#P,_PF@"2Q&VPMU/:)1^@JCXI8+X9U$EF7]PPRO7_P#5Z^U:4#*T$;(04*@J M0,9&*S?%)0>&=1,B[AY##&>_8_GB@#/U!M_P[W(NT&P0A5[#:.*U/#K!O#NF MD'(^RQC_`,=%9MY*3\/#(07+:YV[OZ]:Y.\N/#[Z]I-PZPRPQPE9Y$0-$K$`)N(XR.>O3BM; MPTEG)X@UFYTY5%H?*C1H_P#5LP!W;?IQTH`Z:BBB@#RKPS_R45?^N\__`*"] M%'AG_DHJ_P#7>?\`]!>B@#U:DI:2@`HHHH`1L!3DX&.3G%+2."R,%;:Q&`V, MX]Z6@`KG?&__`"";;G_E\B_G715SOC?_`)!5K_U^1?S-`">-/^/33%$IB+:C M"`^<`=>3[#K^%='7.>-BR6%A*G#17\+J?0\_G71T`9>M,5N=(P2,WH!_[]R5 MJ5EZT";G2/:^!/\`W[DK4H`****`"J%Z[W@DL[.?RY`0)I5SF-3U`(_B_EG/ MUFN[HQ,D$(#W,N=B$]`.K'_9&?Y#J:33K"'3K" M&.W@2&%`D<:A54=`!3Z**`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@` MHHHH`B^T(;HVZY,BH'8#^$'(!/U*G\JC:^@1W60LFV58=S*<%V`(`_,<],G% M.G9$#E6"S%.H0NV`>NT:D[#+"6%HRY``R,C!Z=J`+M%% M%`!1110`8YSG\****`"BBB@`HHHH`****`"LR%8[F]U.TNX5E5F4_-'E638N M`3TR"&./<&M.F)MWR8!SNYSZX%`&;Y=]IDNZ#?>V1ZPD_O8N/X2?OCV//N>E M7;*]@OH?-MWR.C*P*LI]"#R#]:>9PMTL!CD^9=P?;\OTSZ]Z@N[`3.T]O(;: M[V[1,HSD#H&7HP^OJ<$4`7**RK35##/#IVJ/''?NF5*\)-@XROO['FM6@"+[ M/#]I%SY2^>$\OS,?-MSG&?3-2T44`5;S3+&_*F\LX)RHP#(@)`]C26FEV%EM M^RV<$17(#*@!&??K5NB@`JEK;;-#U!LE<6TAR!G'RFKM9GB&6/\`L+4XRX#_ M`&.1L9P<;2/YT`:,2".)(U&U54``'.,5D^+CCPOJ'_7+^HK75@ZAE(92,@@\ M$5D>+O\`D5]0_P"N1_G0!3U`-!\/"I7#+8(A!.TS_KTB_P#0!0!H5DZ]:VM_;2VUW9M, MJP/*DI7Y48<8SG(//Z5K5B^(=4FMHGLK&SDO+V:%V"+T1<8W-_0=^E`%S2K& MVL]*AMX(42(QCVU7SA`DT;P,%DCF38RGW%`%^BBB@#RKPS_P`E%7_KO/\` M^@O11X8_Y**N>OGS_P#H+T4`>K4E+24`%%%%`!1110`5S7C[S1H"-#RZW,9` M]3GC]<5TM.1G2[0Y(Q>Q'COUKI*YGQ^9%T&* M2)"[IQ#"\78!W.Q_P"F:TJ`(;**6"SABGF,\J(`\I&"YQR: M@U6XDM[4_9Y`MU(#';HV,-(>G7TQ^6:L7=S%9VLMQ.VV.-2S$#)JI8P-U6Z**`$(R."1]*6BB@!K*69"' M90IR0,?-P1@Y'OGC'2G444`%-*DNI#L`.JCJ*`&31^;#)'O=-ZE=Z'#+D M=0?6EC5E7:[[\8`8C!/'?'&>O0"G44`&1G'>BD`^8G`STSZC_.:6@`HHHH`@ M"7/F@F>/RP>5$1!(^NZIL'`YY]12T4`!&>^*BDCE:2)DFV*I.]-H(?C]*EHH M`AEA(:2:W$8N&0+N<$@@$D`X[<*S6\A?:QYY4@8'3G)^@%`%\YP< M<'MFJMO%>H\_GW,4BLY,0$6"B^A.>:M44`5]MU]M)$T?V?8,(8CG.>N[//&> M,<<4(EX)@9)H&BXR%B(8]<\[O]WMV/KQ8HH`****`(66X\\,LD9B)^963D#' M8Y]<5-110`4C9*G:0&QP2,@&EHH`@5+O/S30D>T)'_LU%R+LE#:O"!SO$BD_ M0@@_YSVQS/10`T;B@SA6XR.H]_2J%@MR-3U(O*A@,R[5VG<#Y:9YSTZ?K6C3 M4QN?&,[N<#V'6@!U4M.34(@T-\\4RH!LG3Y6?UW+T!Z=#5VB@"GJ6G0ZBD:S M0V\@5\GS8]Q"]]IR"IZ<^U9GV?7-(BE>WN$U6!266";*RA<_=#Y.[\1S6_10 M!2TK4(]2LTGC*;ONRH"5[BV8VMVW6:/^(CIN7HWX\^A%,BU3RITM=106L[_<;=F.4_[+>OL<'ZT`6( M3?!/WZ6[/N_@9@`/Q!YJPVB`_TK4\.,'\.Z:5Z?98Q MTQT4"@#1K"U"0:/K1U25)7M;B)896C0OY)4DAB!_"5>&?\`DHJ_]=Y__07HH\,#'Q%4#@>?/_Z"]%`'JU)2TE`!1110 M`CL$1G;[JC)XS2TCLJ(SN0%49)/84M`!7.>/VQX3N1M!W,@R>WS"NCKG?'R; MO"5V<_<:,_\`CX']:`&_$`-_PBL[+GY9$.1V^85T4;K+&LB'*N`P/J#65XG@ M&H>%KY8QO#0^8O7G'S#'Y5+XOK55;V37;V;2]NVWMBR7L@X$Q! MP$3G(!YW>G3OF@"Y:[=:E6]8,;%/^/>-N!(P)_>$=QTV@_7TK6H````&`.@% M%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110!&\$< MDBR,OSKT8$@XSG&1VX''2HH]/MH[M[I4;SG;M("#G!Z<&@!:***`"BBB@`HHHH`***15"C`&!DF@!:***`"HH5<2W M!=<`R`H<]1M7^N:EK!TR]O&\5ZK8W$BO`BI+$`/NY`H`WJ***``@'K112,2! MP,G(H`6H[BWBNH'@N(UDB<896'!J*^OH-/C$UT62$G#2;Q.1VSTJ_97UOJ$'G6LF]02I&""I M'4$'D'V-6*H7VF">7[3;3/:W8&/-CZ/Z!QT8?7IVQ0!?JEK3*FB7[-RJV\A/ MTVFJEGK$D;I;:U"ME=,P5 BF/^RW8_[)YZ=:N:PH;1[Y3T-O(/_'30!)I_ M_(.MO^N2_P`A53Q*_E^&]2;CFV=>3CJI']:MZ?\`\@ZV_P"N2_R%8?CZY:'P MW)#&P#W,BQ`=SSDX_*@!+IGA^'78,-.53M((P4`ZUH^&,_\`"-:;DH?]'3E. MG3^?K[T:U"(O"U]#]X1V4B@GV0TGA=2GAK3@=V?(4_-[C-`&K02`"2<`=2:* M1P&1@>A&.!F@`!#`$$$'D$=Z6HK3!M(2I++Y:X)&,C%2T`%%%%`'E7AG_DHJ M_P#7>?\`]!>BCPS_`,E%7_KO/_Z"]%`'JU)2TE`!1110!%=!3:3"0,4V-N"] M2,=O>I:BNG,=K,X8J51CN`R1QUQWJ6@`K/UZS-_H=[;*I9Y(6V`=V`R/U`K0 MHH`S/#ET+[P[8S$AMT*JWN1\I_4&LSPA,MI+J&A.=LEG.[0HW7R2<@_KG\14 M?A>0:;KFJZ$XV(LAN+8=MC8R!]./UJ?Q1;O93V_B"TB,D]GQ.B]9(3U_+K_^ MJ@"WXHTJ?5M*$5G+Y5U%*LL3[BN&''4=."::EOJUEI*6EA;62O'"`KFX;[^. M>"G//J>]:6GWL&I6,-Y;-NBE7H/N#Q5B@"BLFJCRPUK9-\J^8PN77GO M@;#QZ3G@?KM%`$0:XVC,46=O(\P\'GC[O M3IS3(GNRH\V"!6RU`$`EU'!S:6N>P%RWM_L?6H_.U?!_T"RR.G^F-S_Y"K0HH`H+) MJOVR7?;6OV;8OE[9CNW9YS\O3_/?A;:?4Y`WVBPMX2#@8N2V?_'/K5ZJL]_! M$\\2NK7$,7FM$3@[>>>GM0`KRWBQDBUC=]P`59NH]Q-@ M)^8Y_"K.TX`\QN#G/'/MTJM9&[>)ENAM9)7`?(RRAOE.,8Y7KT_P`)(WN6B5 MF@1')Y4R9P/J!UIB2WI+;[6)0"P7$V20.A^[QFIEES0):!U4?(?-`W=/;CJ?RJ2)Y69Q+"$`Z$-D-U_^M^=2T4`4Y;F\ M63;%8%UQ]XRJO/ZU!!>:J809]*59<1S]/SIXN6>_-N@38(A)OSG)+$8Q^'ZTZY: M5`CQ!GPZAD7'*DX)Y]`=W']W%`$;7=P/NZ=<'IU>,?7^+K_B/PD%Q+S_`*'. M/Q3G_P`>IZ+,)Y&=T,1QL4+R/J<\]_TIZ$LBEE*DC)4]O:@"#[3,4#?8IP=Q M&TLF<>OWN_\`G%,:[G"J1IURQ)((#19'N?GJW10!6>ZF6-V%C<,5QA`T>6SZ M9;''N:Q/$,VJ7>F-'8Z5>1S;T)+/%A@#G:=KDX^E=)10!AR>(9HDC,FAZH&= M@N%1&YQGC#>Q]*FDU>\\H-%H5^Q/.':)>/\`OLG]*FU[4)-*T:YO8HA*\*@A M3TY('/L,YJ\#O7(;@\@@=J`,G^V+W9&QT&^Y/S@-'P/;YN?TJ]'=3.`6L+E, MXX9H^.?9S]:%:XEMV5#YB@"JUW,`I_ ML^Y.>N&C^7_Q_P#E3?MTOE>9_9]WC.,?)GKC.-U7**`,;^T[M;R%8=&O/)ES MYI;8"A.,$?-]<_@?K;&HL1SI]XI]"B_T-6+J<6T!E(R`RKUQC)`R?89S4D7F M;!YNW?SG;TH`HS:E+$R@:7?2!NZ",X^OS5DQW]Q#XFO)O[,OVBDAB4E47C&[ MG&>>N./>MRUDNI8/WBJDJ2LC94@,H8X(^HP?QK*TW4IY/%NJ6%SL!CBC:$)_ M M%DETZ]>-QM9?(SD$=,9KF8/%=IH&J2Z;)%="Q4*8UD3#VY(SMP3DKC!'ITYK MK+YKAK"[6.-UD\M_+:-ADG''T)/\JEM+*VL8O+M84B4G)VCECZD]2?&XVNV\^Y>6P$QGCL M2@$:N>N>Y&W-`$<^I07,313Z5 M?2QL,%7M20:P-3FUF"VFM-*L+RXLI8FC*W*'?%D8^4YRP^N?K79HVX'Y2N"1 M@TZ@"*TC:*TAC?[R1JI^H%:` M&>.+LVOAFX5"1+<%8$`!)8L>1_WR&K6TZW^QZ;:VQ)/DPI'D^P`_I7-W[CQ# MXPM;&(J]II9\ZX.>#)V7WP0/_'O2NMH`****`*NF,6TNT9CDF%"3_P`!%6JK MV!W:?;'9LS$IVXQMX'%6*`"BBB@#RKPS_P`E%7_KO/\`^@O14?A`EO'D!/4R M3'_QQZ*`/6J2EI*`"BBB@!DZL\$B(=KLI"G.,''K3Z@OD22PN$E9UC:)@S(< M,!@Y(]ZGH`****`,+Q/8W#0Q:GID8.HV3;D^7)D0\,GOUS_^NM#2=1AU?38K MN(?+(,,A_A;NI^E7:Y+5$NO"VHOJEC&TNEW#;[R!1DHY_C7T'^?3``V[LK[P MK>37^D0B?3)2&N+0#F/'5E_S_+CI+#5++4K3[5:7"20C[QSC;]<]/QHT[4K/ M5+<3V5PDR=]IY7V(Z@_6L3Q!X0CU!9Y=.G:SN)EQ(BL1%-CIN`H`Z8$$`@Y! MZ$4UY$0J'8+N.URBOY+2V5/M056D1%QA M<]2<8_B)]^:O5F/J>A>>D\E]IWG!?ED:5-V#Z'/3BHF\2:3'+<9U.V=402#$ MR$'KE5QU/&>YYH`UPP+E.X`/YY_PI)$21"DBJZ,,%6&0:RX=2T,+G'L.IJ*WODNI(S;*98'1F M\\?=R",`>NG MU)J2H&O+5&VON"X%.-U;A48SQ;7^Z=XPWT]:`'R()(V1LX8$'!Q5=[FT MT];>WFG5&?Y(E=LLY'H.I[?G4R7$$AQ'-&QXX5@>V?Y`U#_':@!]E-+/:I)/"89#D,A]B1GZ'&?QJ>H+FY2W6)W=%C9PA9C MZ\#\S@?C4]`!3=Q\T(%.,9+=AZ#^?Y4DTT=O"\TSJD:`LS,<``56LC)<"*\, MWR2P+F%>5!ZYSU[X_P`\`$M[9P7]K+;7*;HY5*L`<''UJ95"J%48`&!2T4`% M0K;A;F2<.Y9PH*D\#&>GYU-10!#'=12L!"?-&XHS)R%('.3^E34R**.",1PQ MI&B]%08`_"F6MQ'0?I M27ES'9V^*9I]PUS;$R%#+&[12;>FY6(]3C.,X]Z`+59*7B3^) M)K*610;>-)(8LVVGVKW5W*(H4^\QY_EUH`GHK/L];TR^MVGMK MV%HU^\6.W'&>0<=J@O/%.B68)EU&!C_=B/F'_P`=S0!F?:O$;:I&VHQQ6-A! M*9"\"-(95`(P=I/&#W`]>U:&H>*]'LK4S"\BN&*Y2.%@S.>PXZ?C61/XBUC6 MG\KPW8.D!&&N[A=H_#M_,^U1>#/#4%K+JSMVX],T M[7==M=&M6:1PURP_B@#UNDI:2@`HHI"0H))``Y)/:@"*\V?8Y_ M,W;/+;=MZXQSBIJC=HY+9FYDC9"?D.=PQVQ_2I*`"BBB@`H(!!!&0>H-%%`' M.WOA.'[2U[H]Q)IMX<\Q?ZMOJO\`GZ56A\0ZOI2%/$&E2LD9PUY;`,N/4@=/ MT^E=710!CP>*M"N%#)J<`!_YZ$H?R;%9T,GA2]N;YYGTV1Y9OO2E`6^5?NYY MZYZ=\UM7.B:5=%C/IUJ[-U8Q##-$DFB9;)$5&+,%9OGR,8Z]._X? M6@"2/2/#*9"VNG'(Q\VUOYU'=:=X4EC"S)IB`H<,KHAQCKD$=..:MGPUHAA6 M+^R[7:O0^6-WXGJ?QJ-?"FA*,#3(>I/.3_6@#)LM%\'P;F-S8W'RXR]PI``[ M]>O3)_E5MM/\'E=Q&EA2I&?-4<8^ON.:NKX7T-6R-,M\^ZYIK>$]!9RQTV') M7;QD#'TSU]^M`%26R\'*0LG]E(1S@RHIY_&L35+'P?YMTZ2VPV6ZM&(9\AF! M8D#!ZD`#\:W_`/A#M",LJG2T",`=WFORM/A\'Z%%)*_P!A1_,; M=M=[!2S,&"ABJ+@#@*"!CC/XT]_".@R?>TV(?[I8>GH?:@# M,U7P]X8O(`\4]G9E9%W21R``@'!4C..>GKFIK+PWX8M;9(W6UGD`&^227)8] MSC/'T%7#X1T$HR_V;'AB2?F;/X'/%,3P9X?3=C3E.X8.97/\SQ]:`�O"RY MQ;V7)SS)G^M,/AWPH8Q&8+7`[B<@_GNS5C_A#]`\GRO[-CV^N]MWYYS6._@F MUGMI#!IL5O(3(J"6YD;')"MQ[#('/7G-`#=(T#PE^:T/\`A&?"<#[F@MU*\D/8PWG(YP# MQTQQV/XU8/@KP\<_\2_!QC(E?_&@#(@L?!U]K5U#&+=E6%!A9"B;MS9VG(R? MN].,?C5L^$O"H+3G8(E(W#[4=H^ISGGZU8NO!&ARQMY5EY;L`NY9F&T=R.HS MCU')H'@;0!#Y?V1RW_/3S6W?SQ^E`"1^%O"O)CMH&S\I_P!(9NO_``+KP?RJ MK)X*\.SNK02%%#;V"3;LKC&.2<#..?PJ\/!'AX``V!..YFDY_P#'J:O@;P^, M9LV;'K,_/ZT`-_X0GP[(,):D%3ABL[DY]#S3T\#^'U7!L2Y]3,_]#36\"^'R MH`M'4XQD3/\`GUZ_XTU?`F@HI!MI7)X!,S9'OU'2@"O?^#/#MO:KN1X&>1%6 M0RDG)8#&"<=ZN_\`"$^'O^@?_P"1I/\`XJJLGP_T5Y%*B>-0V2HDSN&.G/3G M^53?\()H.25MY5/8B9OEYZCF@"GJG@[P[9Z=<3.'@*)D.9CP>PY]3Q5J/P3X M!_#X4#[$Q(&,^<^3[]:HP?#W2A=3M*\[1DCR MH]X&T8'4XR><_A0!63DEA M*<'GC]*F?P+HDC`NEP<#`!F)[Y_Q_.F?\(!H><[+CZ>;2KX"T1&#*MPK`Y!$ MIR#0!++X)T69MTL<\C`8RT[$X_.J5EX(T1[BZ(>215EVJJRD&,`#(/?.[)^F M*&\"Z9-=AS'=>6A*$27'##'##@D\GU'2IK;P!HL4&R59IGSRYD*Y&>F!QZ?E M0!!J_A+2+;39));BY1!(C.SS$@#<-QP>,D9YJW'X,T1[7;;O<>3(,YCN"5;W M]#FF?\(!H7_/.?\`[^FH[7P!I,$LCF6Y8[OD(EP4&/8#G_ZU`$Y\#:4553+> M848`\\_Y[#\A3;GP9;'RWM[J\#*PW*]PV&7N,\X]?PJ'_A7FDARR7-\F>RR+ MQ[?=I#\.M&(`$UZ/<2+S_P".T`.M?`6F^0AU!Y[FXQ\[>:0,YSQ4-OX*T274 M;M8Y95\EDVI'+S'QGD\]ZF7X>:*(BADNV8]',@R/TQ^E10?#[2T^'NF0HPFN+J8L, M,`X13SD<`?UH`?=_#[1YHF%OYUO)MPK!]P!]2#U_,5C0>#Y&UI=,O-3EGMQ; M^;*(Y=I4[B%&TYXX'^<9W%\`Z*LJR+]I4KT`E[^O3.:I-X#TI[Z2.>XO5W

]`%I?`>B,V5ENF9#@D3#(/7TZ\TV^\#Z)+)$LEW]-C^&^F@MYMY=L.VTJN M/T-`%N/P!H2##1SR>[2G^F*T+3PYH>EN+B&RAC9""))&+;3VP6)Q62?AUH^P M*)[S.7LV#P"Z_=[`\?X4`;-YXGT6RR)M1@+#/RQ MMO/';C.#7*6NL>(M;U*[N="M1#;S;4\R;!";<\Y/&?FR0`:OMX+T>TU:!'MI M;BWNBRA6E(\I@"W;!*D`CGH0/6NITZP@TRRCM+5=L4><9Z]<\T`96B^%[;3K MC[;ZBW+7$IS@^P[HHH`****`"H+RTAO;=H)PY1NNQRA_,$&IZ M1U#HR'HPP<4`0V""*PMHP3Y"?^@BK5`!1110!Y+X M._Y'JW_ZZ2_^@/11X._Y'JW_`.NDO_H#T4`>MTE+24`%%%%`%:^4+IMR%``$ M3\#Z&I9YXK:%YIY$BB099W.`*+B>*V@>>>18XHQN9F.`!3I8HYHS'*BR(W56 M&0?PH`5'61%=#E6&0?44M,@ACMX(X(5V1QJ$1?0`8`IRL&4,I!!Z$4`+112! ME)P&!//?TZT`+1110`4444`-8,<;"!SSD9R*;/-%;0/-.XCBC4LS-T`J2HYX MA/%Y;8VD@D$9R`001WJ.WF,XD)B>/9(R8<8S@]?H:D50@"J M`J@8``Z4*N"QW$Y.<'MQVH`QU\1VC^)CH@#>:$)WXXWXR5_+G-;-5S86C7RW MIMHC=*NT2[1N`^M3Y!)`(R.M``3@$@$X[#O47G89"[+&KH6V/PP/?OV[U+D9 MQD9]*ANK."\3;/$CD`[6*@E"1C()Z&@!6N[=;I+4RKY[@E4[G&,_S'YTMU,+ M:UFG*,XB1GVKU;`S@>]9,6B6XUQ+V:2.658%53G#EU/+G'?&T'\JV)8Q+$\; M='4J?QH`KZ?>-=QMYMM);3QG#Q2&X(P>/?/X4^@!%4*,`8&2:6BB@` MI"#D8.`#SQUI:*`*:74TD\'[@QQ2&16WC#`J?E_`X8_E5IY$1D5W"M(VU`3] MXX)P/P!/X4/&KLC,,E&W+ST."/Y$U6O=/CO9[625CMMG,@3L6Q@'ZB@"TS!% M+,<`#)-,MYEN+>.90P610P##!P:>=VX8`QZY_P`^U`!`Y.>:`%HHHH`*0\1$9%=U4N=J@G M&XX)P/4X!/X4DD,LI;!;FWN;@7$RNOSXQA=@"KU)XP>3U_.@ M#7Q\P.3P,8[4M%%`!4=Q`EQ"T;E@#W5BK`^H(Z&I**`,(:3_`&?<07S2/=7' MVDM/.ZC?Y;(5QP/N@[3QZ$U/K&L&QCM&M(UNC-T<\#GK[TH````P!T`H`AMHYXU;[1.)G)S\J;%4>@&2?S)J8#``SGW- M%%`!2("J*&8L0,%CW]Z6CIUH`**0,K+N#`KUR#Q21L'C5U965@"&7H?<4`.I M&8(I9B%4#))/`%+2,H=2K`,I&""."*`*VEC&E68!!Q`G([_**M56TS;_`&7: M;"2ODI@D8.-HJS0`4444`>2^#O\`D>K?_KI+_P"@/11X._Y'JW_ZZ2_^@/10 M!ZW24M)0`4452NIFEG^PV\I25D+/(N"8EZ`_4GIGT)[4`5KNWCUF]CAEB5[. MSE$C;U/[R4`@*/4#//OQZBM:FQ1I#$D4:[410J@=@.E.H`*15"C"@`#L*6B@ M!"H.<@'(P>.HI%10N-J]<\#C.M.``S@=>M%%`!1110`4444`%(5#8R` M<'(S2T4`->*-SET5CM*Y(SP>H^AP/RI0H```&!T]J6B@!-B[]^T;\8W8YQZ4 M,"5(#%21U'44M%`"*"%`+%B!U/4TM%%`!1110!!V,\G%2PW2R M3-"R/%*JA]KXR021D8)]*`)@H7.`!DY.*7`SG'/K110`5$UM`ZE6@C92V\@H M,%O7ZU+10`4444`%,6*-)'D6-%>3&]@,%L=,GO3Z*`(U@B5"BQ(%88("C!'I M3]JE2I48/48ZTM%`&?%H6E0Q/$FGVWENVYD,8()P1G!]B?SJS;V5K:QF.WMX MHD(P0B`9X`Y]>`/RI\TL:`(\RQ/(=J$D`EO;/4UFIK<4.C65W=K)Y]PB[8$0 MEWDQDJ%^N?:@"Q+8Z5:P22RVEG%$/GD9HE`Z@Y/'J!^0KFK#3/\`A)M.MEFM MA::;;G;"ZG]].@R!D]@,[-VZL9"?^_;44`>O4E+24`%8$>A:C;7M M_K+$+N82[&MPV/;)/X5OT4`8;6GB0X(U6R&?O`6IP/ISS4RVFM+)&QU6! ME'+J;7&[V!W5<22Z M>YW,2=CCC)P.OIC_`.OUK5HH`S\:N(Q\]BTASD;'`'IWY_2@MK"NN([&1,'< M?,=#GL>AK0HH`KPO>$#SX($.>=DQ;C\5%2L90%V(A.?FRY&!CMQSS3Z*`$&< M?,`#['-`SSD`<\8-+10`4444`%%%%`!1110`4444`%(PW*1DC(QD=12T4`1V MT"VUM%`C,RQ($!K<_\`3-O\*4:M9$X$ISC/^K;_``J[10!2 M;5K%9#&T^&YP-IYQUQQS^%5(=?TH2S@79!WY.Z-@/N@<<=./YUL44`D,S* MM\A*]0`>/TK4HH`RO^$DT?9O^W1[.N[!Q_*D'B?1",C482.G>M:B@#'_`.$J MT+_H)P?F:/\`A*M"_P"@G!^9K8I&574JRA@>H(S0!S]]XUT2SA#K M.M`'&Z;XD\/QS"_O=4>:_=`"7@?;%ZJ@"X`_$Y]:2]\7:#_;UA=QRM,$CDC> M18V&P'&."!GH?S-=<]K;O]^WB;G/*`\TTV%GQ_HL`_[9KS^E`'/WWBOPO?6C MVUU=":*4;64P/Q[_`'>WJ.:P#XW^P&*RT^9[BT557[19++$Y=O0$[<`#T'`K5TSQ%I6KW#6]A=>=*J%ROELO&0,\@>HJP^DZ;(Y9] M/M&)&"3`I)_2GVVG6-FY>ULK>!R,%HHE4XXXX'L/RH`LT444`>0>!/\`D;[' M_MI_Z+:BCP)_R-]C_P!M/_1;44`>P4E+24`%%%%`!1110`4444`%%%%`!111 M0`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%` M!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`% M%%%`!1110`4444`%%%%`!1110`4444`%(S!%+,0J@9))X`I:;(N^-DR1N!&1 MU%`'D7@3_D;['_MI_P"BVHH\"?\`(WV/_;3_`-%M10![!24M)0`4444`%%%% M`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444` M%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4 M444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`>0>!/^1O ML?\`MI_Z+:BCP)_R-]C_`-M/_1;44`>P4E%%`!1110`4444`%%%%`!1110`4 M444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!11 M10`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%% M`!1110`4444`%%%%`!1110`4444`%%%%`!1110!Y!X$_Y&^Q_P"VG_HMJ*** #`/_9 ` end EX-31.1 4 ex311.htm EXHIBIT 31.1

EXHIBIT 31.1
CERTIFICATIONS

I, Kang Yihua, certify that:

1.     I have reviewed this quarterly report on Form 10-QSB/A of Ever-Glory International Group, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4.      The small business issuer's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the small business issuer and have:

(a)      designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements, for external purposes in accordance with generally accepted accounting principles;

(c)      evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5.      The small business issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

a)      all significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b)      any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: November 29, 2006

By:    /s/ Kang Yihua
     Kang Yihua 
     Chief Executive Officer 


EX-31.2 5 ex312.htm Exhibit 31.2

EXHIBIT 31.2
CERTIFICATIONS

I, Guo Yan, certify that:

1.     I have reviewed this quarterly report on Form 10-QSB/A of Ever-Glory International Group, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4.      The small business issuer's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the small business issuer and have:

(a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)     designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements, for external purposes in accordance with generally accepted accounting principles;

(c)     evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)     disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5.      The small business issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

a)     all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: November 29, 2006

By:    /s/ Guo Yan
     Guo Yan
     Chief Financial Officer


EX-32.1 6 ex321.htm EXHIBIT 32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ever-Glory International Group, Inc. (the "Company") on Form 10-QSB/A for the period ending September 30, 2006, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kang Yihua, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

By:  /s/ Kang Yihua
  Kang Yihua
  Chief Executive Officer 

 

 

November 29, 2006


EX-32.2 7 ex322.htm EXHIBIT 32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ever-Glory International Group, Inc. (the "Company") on Form 10-QSB/A for the period ending September 30, 2006, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Guo Yan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

By:  /s/ Guo Yan
  Guo Yan 
  Chief Financial Officer  

 

 

November 29, 2006


 

-----END PRIVACY-ENHANCED MESSAGE-----