ARTICLES OF AMENDMENT
                                     TO THE
                            ARTICLES OF INCORPORATION
                                       OF
                         WATERFORD STERLING CORPORATION


     Pursuant to the applicable  provisions of the Nevada Business  Corporations
Act,  Peregrine,  Inc.  (the  "Corporation")  adopts  the  following  Article of
Amendment to its Articles of Incorporation by stating the following:

     FIRST:   The  present  name  of  the  corporation  is  Waterford   Sterling
Corporation.

     SECOND:  The  following  amendment  to its Articles of  Incorporation  were
adopted by a majority vote of the  shareholders  of the  Corporation on December
12, 2002 in the manner prescribed by Neveda law.

     ARTICLE I is amended to read as follows:

     Name. The name of the  corporation  shall be: Eternal  Technologies  Group,
Inc.

     ARTICLE IV is amended to read as follows:

     Capitalization.  Following  the one (1) for six (6)  reverse  split  of the
common  shartes  approved on  December  12,  2002,  the  Corporation  shall have
authority to issue the following (a) Common Stock - 95,000,000  shares of common
stock  having a par value of mil ($.001).  All common  stock of the  corporation
shall be of the same class and shall have the same rights and preferences. Fully
paid common  stock of the  corporation  shall not be liable for further  call or
assessment.  The  authorized  common shares shall be issued at the discretion of
the Board of Directors.  (b) Preferred  stock - the  corporation  shall have the
authority to issue  5,000,000  shares oif preferred stock and having a par value
of one mil  ($.001),  with such rights,  preferences  and  designation  as to be
issued in such series as determined by the Board of Directors.

     THIRD: The number of shares of the corporation  outstanding and entitled to
vote at the time of the adoption of this amendment was 20,887,815.

     FOURTH:  The number of shares  voting  for this  amendment  was  14,594,000
(69.87%) and the number of voting against such amendment was -0-.


DATED this 12th day of December 2002


                                                WATERFORD STERLING CORPORATION

                                               By: /s/______________________
                                                   Jacob Nguyen
                                                   President

                                                  /s/________________________
                                                  Hank Vanderkam
                                                  Assistant Secretary


                                  VERIFICATION


STATE OF TEXAS           )
                         :   ss.
COUNTY OF HARRIS         )

     The  undersigned  being first duly  sworn,  deposes,  and states:  that the
undrsigned is the Assistant  Secretary of Waterford Sterling  Corporation.  That
the  undersigned  has read the  Articles  of  Amendment  and knows the  contents
thereof and that the same contains a truthful statement of the Amendment adopted
by the Board of Directors and Shareholders of the Corporation.

                                                 /s/___________________________
                                                   Hank Vanderkam
                                                   Assistant Secretary

STATE OF COLORADO       )
                        : ss
COUNTY OF ARAPAHOE      )


     Before me the  undersigned  Notary  Public in and for the said  County  and
State,  personally appeared the President,  Jacob Nguyen and Assistant Secretary
Hank Vanderkam of Waterford  Sterling  Corporation,  a Nevada  corporation,  and
signed the foregoing  Articles of Amendment as their own free and voluntary acts
and deeds  pursuant to a  corporation  resolution  for the uses and purposes set
forth.

     IN WITNESS  WHEREOF,  I have set my hand and seal this 12th day of December
2002.

                                                    ---------------------------
                                                    NOTARY PUBLIC RESIDING