Document:

WWW.EXFILE.COM, INC. -- 13737 -- GLOBAL MATRECHS, INC. -- EXHIBIT 10.13 TO FORM 10-QSB

    

      EXHIBIT
        10.13

       

      EMPLOYMENT
        AGREEMENT

       

      EMPLOYMENT
        AGREEMENT
        (this
“Agreement”)
        dated
        January 31, 2005, (“Effective
        Date”)
        between Global Matrechs, Inc.(including, as the context may require, its
        subsidiaries, the “Company”),
        a
        Delaware limited liability company located at 90 Grove Street, Ridgefield
        CT
        06877, and Mark Allen, (“Allen”), currently residing at 29 Loring Drive,
        Norwell, MA 02261.

      

       

      WHEREAS,
        the
        Company wishes to employ Allen to
        render
        services for the Company as its Executive Vice President and President of
        its
        whole owned subsidiary, True To Form Limited (“TTF”), on the terms and
        conditions set forth in this Agreement, and Allen wishes to be retained and
        employed by the Company on such terms and conditions; and 

       

      NOW,
        THEREFORE,
        in
        consideration of the promises, the mutual agreements set forth below and
        other
        good and valuable consideration, the receipt and adequacy of which are hereby
        acknowledged, the parties agree as follows:

       

      1.    Engagement
        - The Company hereby employs Allen, and Allen accepts such engagement and
        agrees
        to perform services for the Company, for the period and upon the other terms
        and
        conditions set forth in this Agreement.

       

      2. Term
        -
        Unless terminated at an earlier date in accordance with Section 8 of this
        Agreement or otherwise extended by agreement of the parties, the term of
        Allen’s
        engagement hereunder shall be for a period of two (2) years, commencing on
        January 1, 2005. The period of engagement may be extended by written agreement
        between the parties for two successive one year terms, provided that certain
        provisions including without limitation those relating to compensation may
        change upon commencement of any extension hereto. 

       

      3.    Position
        and Duties 

       

      (a)  Service
        With Company - During the term of Allen’s engagement by the Company, Allen
        agrees to perform such reasonable services as the Board of Directors of the
        Company (the “Board”)
        shall
        assign to Allen from time to time. Allen’s title as of the Effective Date shall
        be Executive Vice President of Global Matrechs, Inc. and President of TTF.
        The
        Company shall not require Allen to move from his principal office in Braintree,
        MA without Allen’s prior consent.

       

      (b)  Performance
        of Duties; Duty of Loyalty and Non-Compete - Allen agrees to serve the Company
        faithfully and to the best of Allen’s ability and to devote all of his
        professional time, attention and efforts to the business and affairs of the
        Company during Allen’s engagement by the Company. Allen hereby confirms that
        Allen is under no contractual commitments inconsistent with Allen’s obligations
        set forth in this Agreement and that during the term of this Agreement Allen
        will not render or perform services for, or receive any compensation from,
        any
        other corporation, firm, entity or person, which are inconsistent with the
        provisions of this Agreement. During the term of Allen’s employment with the
        Company and for a period of twelve (12) months thereafter, without prior
        written
        consent of 

       

      
        
          
          

        

        
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      the
        Company Allen will not consult with, work as an employee or other service
        provider (whether as an individual or as a partner, shareholder, director,
        officer, agent, consultant, or in any other relationship or capacity) directly
        or indirectly for any third party person or entity (“Third Party”) which Third
        Party is in the primary business of assembly, sale or marketing of lighting
        fixtures and lighting accessories. Primary business means 50% or more of
        gross
        revenues are derived from the business activities described in the sub-paragraph
        above. Such restriction shall be operative in any state of the United States
        or
        in any country outside of the United States in which the Company shall then
        be
        doing business, directly or indirectly. 

       

      4.    Compensation
        

       

      (a)  Base
        Salary
        - As
        compensation for services to be rendered by Allen under this Agreement, the
        Company shall pay to Allen a “Base Salary.” The Base Salary shall be one hundred
        fifty thousand dollars ($150,000) annually, paid in equal semi-monthly
        installments in arrears or otherwise in accordance with the standard procedures
        and policies of the Company. 

       

      (b)  Incentive
        Compensation - The Company shall establish a bonus pool (“Net Sales Bonus”) for
        Allen based on TTF’s 12 month trailing net sales numbers - gross sales less all
        returns, cancellations, credits and rebates (“Net Sales”), calculated in
        accordance with generally accepted accounting principles (“GAAP”). Net Sales
        Bonus payments shall be made annually at the end of January following audit
        of
        the Company’s books after closure of the applicable calendar year (fiscal year
        end). The Net Sales Bonus shall be payable to Allen in cash or restricted
        common
        stock, at Allen’s option, based upon achievement of the following milestones:
        $25,000 in value to Allen if Net Sales exceed $1,000,000; $25,000 in value
        to
        Allen if New Sales exceed $2,000,000; $100,000 in value to Allen if Net Sales
        exceed $4,000,000. In addition to the foregoing, Allen shall be eligible
        to
        participate in any stock option incentive compensation plans that may be
        established by the Board from time to time applicable for Allen’s
        services.

       

      (c)  Grants
        of
        Options - Within 30 days after the Effective Date, the Company shall grant
        to
        Allen a non-statutory stock option (the “Initial Option”) to purchase 600,000
        shares (the “Initial Option Shares”) of the Company’s common stock, par value
        $.0001 per share (the “Common Stock”). Within
        30
        days after December 31, 2005 the Company shall issue a second non-statutory
        stock option (the “Second Option” and, with the Initial Option, the “Options”)
        to purchase that number of shares of Common Stock equal to the difference
        of (a)
        1% of the Common Stock issued and outstanding as of December 31, 2005 (which
        number shall not include, for the avoidance of doubt, Common Stock issuable
        but
        not yet issued, as of such date, (i) upon conversion, exercise or exchange,
        as
        the case may be, of common stock equivalents, or (ii) in respect of any other
        rights to receive Common Stock), minus (b) the Initial Option Shares. Each
        Option
        shall be fully vested upon the date of the grant of such Option (such Option’s
“Grant Date”). Each Option, shall have an exercise
        price per share equal to the fair market value of the Common Stock on such
        Option’s Grant Date, and shall be exercisable until the earlier of: (x) ten
        years following its Grant
        Date,
        or (y)
        90 days following the termination of Allen’s employment.

       

      
        
          
          

        

        
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      (d)  Expenses -
        The
        Company will pay or reimburse Allen for all reasonable and necessary
        out-of-pocket expenses incurred by Allen in the performance of Allen’s duties
        under this Agreement, subject to the Company’s normal policies for expense
        verification and travel guidelines.

       

      (e)  Health,
        Retirement Benefit Plans and Vacation - Allen shall be entitled to participate
        in all incentive, savings and retirement plans, practices, policies and programs
        applicable generally to other officers or employees of the Company. Additionally
        during the term of this Agreement Allen and Allen’s family, as the case may be,
        shall be eligible for participation in and shall receive all benefits under
        Welfare Benefit Plans. “Welfare Benefit Plans” are medical, dental, disability
        of other health maintenance or similar plans made generally available to
        officers or employees of the Company. Should Allen choose a health insurance
        program different than that provided by the Company, the Company shall reimburse
        Allen the dollar amount that the Company otherwise would contribute to health
        insurance for Allen and dependants under the Company plan.

       

      5.    Confidential
        Information
        - Except
        as permitted or directed by the Company’s Board of Directors, during the term of
        Allen’s engagement or at any time thereafter, Allen shall not divulge, furnish
        or make accessible to anyone or use in any way (other than in the ordinary
        course of the business of the Company) any confidential or secret knowledge
        or
        information of the Company that Allen has acquired or become acquainted with
        or
        will acquire or become acquainted with prior to the termination of the period
        of
        Allen’s engagement by the Company (including engagement by the Company or any
        affiliated companies prior to the date of this Agreement) whether developed
        by
        Allen himself or by others, concerning any trade secrets, confidential or
        secret
        designs, processes, formulae, plans, devices or material (whether or not
        patented or patentable) directly or indirectly useful in any aspect of the
        business of the Company, any customer or supplier lists of the Company, any
        confidential or secret development or research work of the Company, or any
        other
        confidential information or secret aspects of the business of the Company.
        Allen
        acknowledges that the above-described knowledge or information constitutes
        a
        unique and valuable asset of the Company and represents a substantial investment
        of time and expense by the Company, and that any disclosure or other use
        of such
        knowledge or information other than for the sole benefit of the Company would
        be
        wrongful and would cause irreparable harm to the Company. Both during and
        after
        the term of Allen’s engagement, Allen will refrain from any acts or omissions
        that would reduce the value of such knowledge or information to the Company.
        The
        foregoing obligations of confidentiality shall not apply to any knowledge
        or
        information that is now published and publicly available or which subsequently
        becomes generally publicly known in the form in which it was obtained from
        the
        Company, other than as a direct or indirect result of the breach of this
        Agreement by Allen.

       

      6.    Ventures
        - If, during the term of Allen’s engagement Allen is engaged in or associated
        with the planning or implementing of any project, program or venture involving
        the Company and a third party or parties, all rights in such project, program
        or
        venture shall belong to the Company, unless prior written consent from the
        Company is obtained. Except as approved by the Company’s Board of Directors,
        Allen shall not be entitled to any interest in such project, program or venture
        or to any commission, finder’s fee or other compensation in connection therewith
        other than the compensation to be paid to Allen as provided in this Agreement.
        Allen 

       

      
        
          
          

        

        
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      shall
        not
        enter into any arrangement through which Allen acquires or may acquire any
        interest, direct or indirect, in any vendor or customer of the
        Company.

       

      7.    Patent
        and Related Matters; Disclosure and Assignment - Allen will promptly disclose
        in
        writing to the Company complete information concerning each and every invention,
        discovery, improvement, device, design, apparatus, practice, process, method
        or
        product, whether patentable or not, made, developed, perfected, devised,
        conceived or first reduced to practice by Allen, either solely or in
        collaboration with others, during the term of this Agreement, whether or
        not
        during regular working hours, relating either directly or significantly and
        indirectly to the business, products, practices or techniques of the Company
        (“Developments”). Allen, to the extent that Allen has the legal right to do so,
        hereby acknowledges that any and all of the Developments are the property
        of the
        Company and agrees to assign and hereby assigns to the Company any and all
        of
        Allen’s right, title and interest in and to any and all of the Developments
        (“Assignment”). During the period commencing upon the day after Allen’s last day
        performing services for the Company and ending one year after termination
        of
        Allen’s engagement with the Company, at the reasonable request of the Company,
        Allen will confer with the Company and its representatives for the purpose
        of
        disclosing all Developments to the Company, provided that such conference
        is at
        the Company’s expense and Allen is compensated at no greater than a rate of $250
        per hour for Allen’s time plus reasonable and necessary expenses. 

       

      (a)  Limitation
        on Section 7(a)
        - The
        provisions of Section 7 shall not apply to any Development meeting the following
        conditions: (i) such Development was developed entirely on Allen’s own time
        without the use of any Company equipment, supplies, facility or trade secret
        information; and (ii) such Development does not relate directly or significantly
        to the business of the Company to the Company’s actual or demonstrably
        anticipated research or development; or result from any work performed by
        Allen
        for the Company.

       

      (b)  Copyrightable
        Material - All right, title and interest in all copyrightable material that
        Allen shall conceive or originate, either individually or jointly with others,
        and which arise out of the performance of this Agreement, will be the property
        of the Company and are by this Agreement assigned to the Company along with
        ownership of any and all copyrights in the copyrightable material. Upon request
        and without further compensation therefor, but at no expense to Allen, Allen
        shall execute all papers and perform all other acts necessary to assist the
        Company to obtain and register copyrights on such materials in any and all
        countries, except that Allen shall be compensated at no greater than a rate
        of
        $250 per hour plus reasonable and necessary expenses for Allen’s time for
        compliance with this provision following termination or expiration of this
        Agreement. Where applicable, works of authorship created by Allen for the
        Company in performing Allen’s responsibilities under this Agreement shall be
        considered “works
        made for hire,”
        as
        defined in the U.S. Copyright Act. To the extent not considered as work made
        for
        hire, such works will be considered assigned to the Company under the Assignment
        provision of this Section 7.

       

      (c)  Know-How
        and Trade Secrets - All know-how and trade secret information conceived or
        originated by Allen that arises out of the performance of Allen’s obligations or
        responsibilities under this Agreement or any related material or information
        shall be the property of the Company, and all rights therein are by this
        Agreement assigned to the Company.

       

      
        
          
          

        

        
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      8.    Termination
        of Engagement; 

       

      (a)  Grounds
        for Termination -
        (a)
        Allen’s engagement shall terminate prior to the expiration of the initial term
        set forth in Section 2 or any extension thereof in the event that at any
        time:
        (i) Allen dies or is permanently disabled (substantially unable to perform
        his
        duties due to physical or mental incapacity for a period of ninety (90)
        consecutive days or one-hundred and twenty (120) out of one hundred and fifty
        (150) consecutive days), (ii) The Board elects to terminate this Agreement
        for
“cause” and notifies Allen in writing of such election, (iii) The Board elects
        to terminate this Agreement without “cause” and notifies Allen in writing of
        such election, (iv) Allen elects to terminate this Agreement and notifies
        the
        Company in writing of such election, or (v) Allen elects to terminate this
        Agreement for “good reason” (as defined below) and notifies the Company in
        writing of such election or (vi) the Company undergoes a change of control
        by
        which the majority of the beneficial and voting ownership interest in the
        Company changes hands.

       

      If
        this
        Agreement is terminated pursuant to clause (i), (ii) or (iv) of this Section
        8(a), such termination shall be effective immediately. If this Agreement
        is
        terminated pursuant to clause (iii), (v) or (vi) of this Section 8(a), such
        termination shall be effective 15 days after delivery of the notice of
        termination.

       

      (b)  “Cause”
        Defined - “Cause” means: (i) Allen has breached the provisions of Section 5, 6
        or 7 of this Agreement in any material respect, (ii) Allen has engaged in
        willful and material misconduct, including willful and material failure to
        perform Allen’s duties as an officer of the Company and has failed to cure such
        default within 10 days after receipt of written notice of default from the
        Company, (iii) Allen has committed fraud, misappropriation or embezzlement
        in
        connection with the Company’s business, or (iv) Allen has been convicted or has
        pleaded nolo
        contendere
        to
        criminal misconduct (except for parking violations, occasional minor traffic
        violations and other similar minor violations).

       

      (c)  Effect
        of
        Termination - Notwithstanding any termination of this Agreement, Allen, in
        consideration of Allen’s engagement hereunder to the date of such termination,
        shall remain bound by the provisions of this Agreement which specifically
        relate
        to periods, activities or obligations upon or subsequent to the termination
        of
        Allen’s engagement.

       

      (d)  Surrender
        of Records and Property -
        Upon
        termination of Allen’s engagement with the Company, Allen shall deliver promptly
        to the Company all records, manuals, books, blank forms, documents, letters,
        memoranda, notes, notebooks, reports, data, tables, calculations or copies
        thereof that relate in any way to the business, products, practices or
        techniques of the Company, and all other property, trade secrets and
        confidential information of the Company, including, but not limited to, all
        documents that in whole or in part contain any trade secrets or confidential
        information of the Company, which in any of these cases are in Allen’s
        possession or under Allen’s control.

       

      (e)  Payment
        Continuation - If Allen’s engagement by the Company is terminated by the Company
        pursuant to clause (iii) of Section 8(a) or by Allen for Good Reason pursuant
        to
        clause (v) of Section 8(a), or by a change in control pursuant to clause
        (vi) of
        Section 8(a), the Company shall continue to pay to Allen Allen’s Base Salary
        (less any payments received by Allen from any disability income insurance
        policy
        provided to Allen) plus the pro-rata portion of the Net Sales Bonus calculated
        through the date of termination through the earlier 

       

      
        
          
          

        

        
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      of
        (a)
        the date that Allen has obtained other professional engagement with a total
        compensation package (i.e. Salary plus benefits) equivalent to at least 80%
        of
        his total compensation under the terms of this agreement as of the date of
        termination, or (b) twelve (12) months from the date of termination of
        engagement. Any payment made pursuant to this section shall be payable over
        the
        12 month period following termination pursuant to the normal semi-monthly
        pay
        cycle and not as a lump sum. If this Agreement is terminated pursuant to
        clauses
        (i), (ii) or (iv) of Section 8(a), Allen’s right to Base salary and benefits
        shall immediately terminate, except as may otherwise be required by applicable
        law.

       

      (f)  “Good
        Reason” defined - Good Reason shall mean: (i) the assignment of Allen to any
        duties inconsistent in any respect with Allen's position (including status,
        offices, titles and reporting requirements), authority, duties or
        responsibilities as contemplated by Section 3(a) or any other action by the
        Company which results in a diminution in such position, authority, duties
        or
        responsibilities, excluding for this purpose an isolated, insubstantial and
        inadvertent action not taken in bad faith and which is remedied by the Company
        promptly after receipt of notice thereof given by Allen; (ii) any termination
        or
        reduction of a material benefit under any benefits plan in which Allen
        participates unless (1) there is substituted a comparable benefit that is
        economically substantially equivalent to the terminated or reduced benefit
        prior
        to such termination or reduction or (2) benefits under such plan are terminated
        or reduced with respect to all employees previously granted benefits thereunder.
        

       

      9.    Indemnification
        - In the
        event that Allen is made, or threatened to be made, a party to any action
        or
        proceeding, whether civil or criminal, by reason of the fact that Allen,
        at the
        request of the Company, is or was a director, officer, or member of a committee
        of the Board or serves or served any other corporation, partnership, joint
        venture, trust, benefit plan or other enterprise in any capacity, or resulting
        from any of Allen’s actions in any of the foregoing roles, Allen shall be
        indemnified and held harmless by the Company and the Company shall advance
        Allen’s related expenses to the fullest extent permitted by law (including
        without limitation, damages, costs and reasonable attorney fees), as may
        otherwise be provided in the Company’s Certificate of Incorporation and ByLaws
        or its Operating Agreement. The
        Company further covenants not to amend or repeal any provisions of such
        documents which would adversely affect the indemnification or exculpatory
        provisions contained therein as they pertain to Allen. The provisions of
        this
        Section are
        intended to be for the benefit of, and shall be enforceable by Allen and
        his
        heirs and representatives. If
        the
        Company or any of its successors or assigns (i) shall consolidate with or
        merge
        into any other corporation or entity and shall not be the continuing or
        surviving corporation or entity of such consolidation or merger or (ii) shall
        transfer all or substantially all of its properties and assets, then and
        in each
        such case, proper provisions shall be made so that the successors and assigns
        of
        the Company shall assume all of the obligations set forth in this Section
        9.  

       

      10.    Miscellaneous

       

      (a)  Counterparts
        - This
        Agreement may be executed in separate counterparts, each of which will be
        an
        original and all of which taken together shall constitute one and the same
        agreement, and any party hereto may execute this Agreement by signing any
        such
        counterpart.

       

      
        
          
          

        

        
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      (b)  Severability
        - Whenever possible, each provision of this Agreement shall be interpreted
        in
        such a manner as to be effective and valid under applicable law but if any
        provision of this Agreement is held to be invalid, illegal or unenforceable
        under any applicable law or rule, the validity, legality and enforceability
        of
        the other provisions of this Agreement will not be affected or impaired thereby.
        In furtherance and not in limitation of the foregoing, should the duration
        or
        geographical extent of, or business activities covered by, any provision
        of this
        Agreement be in excess of that which is valid and enforceable under applicable
        law, then such provision shall be construed to cover only that duration,
        extent
        or activities which may validly and enforceably be covered.

       

      (c)  Successors
        and Assigns - This Agreement shall be binding upon and inure to the benefit
        of
        the parties hereto and their respective heirs, personal representatives and,
        to
        the extent permitted by subsection (d), successors and assigns.

       

      (d)  Assignability
        - Neither this Agreement nor any right, remedy, obligation or liability arising
        hereunder or by reason hereof shall be assignable (including by operation
        of
        law) by either party without the prior written consent of the other party
        to
        this Agreement or as specifically provided herein, except that the Company
        may,
        without the consent of Allen, assign its rights and obligations under this
        Agreement to any corporation, firm or other business entity with or into
        which
        the Company may merge or consolidate, or to which the Company may sell or
        transfer all or substantially all of its assets, or of which 50% or more
        of the
        equity investment and of the voting control is owned, directly or indirectly,
        by, or is under common ownership with, the Company. Provided such assignee
        explicitly assumes such responsibilities, after any such assignment by the
        Company, the Company shall be discharged from all further liability hereunder
        and such assignee shall thereafter be deemed to be the Company for the purposes
        of all provisions of this Agreement including this Section 10.

       

      (e)  Modification,
        Amendment, Waiver or Termination - No provision of this Agreement may be
        modified, amended, waived or terminated except by an instrument in writing
        signed by the parties to this Agreement. No course of dealing between the
        parties will modify, amend, waive or terminate any provision of this Agreement
        or any rights or obligations of any party under or by reason of this Agreement.
        No delay on the part of the Company or Allen in exercising any right hereunder
        shall operate as a waiver of such right. No waiver, express or implied, by
        the
        Company of any right or any breach by Allen shall constitute a waiver of
        any
        other right or breach by Allen.

       

      (f)  Notices
        -
        All notices, consents, requests, instructions, approvals or other communications
        provided for herein shall be in writing and delivered by personal delivery,
        overnight courier, certified mail, electronic facsimile or e-mail addressed
        to
        the receiving party at the address set forth herein. All such communications
        shall be effective when received.

       

      
        
          
          

        

        
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                If
                  to the Company:

                Michael
                  Sheppard

                Executive
                  Pavilion

                90
                  Grove Street

                Ridgefield,
                  CT 06877 

                 

                If
                  to Allen:

                 

                Mark
                  Allen

                29
                  Loring Drive 

                Norwell,
                  MA 02061

                 

              

      

       

      Any
        party
        may change the address set forth above by notice to the other party given
        as
        provided herein.

       

      (g)  Headings
        - The
        headings and any table of contents contained in this Agreement are for reference
        purposes only and shall not in any way affect the meaning or interpretation
        of
        this Agreement.

       

      (h)  Governing
        Law - ALL
        MATTERS RELATING TO THE INTERPRETATION, CONSTRUCTION, VALIDITY AND ENFORCEMENT
        OF THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
        CONNECTICUT, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW PROVISIONS THEREOF,
        EXCEPT AS TO CORPORATE MATTERS WHICH SHALL BE GOVERNED BY THE CORPORATION
        LAWS
        OF THE STATE OF DELAWARE. CHOICE OF LAW PROVISIONS WHICH WOULD OTHERWISE
        RESULT
        IN THE APPLICATION OF LAWS OF SATES OTHER THAN THOSE CONTEMPLATED BY THIS
        PROVISION SHALL NOT APPLY.

       

      (i)  Venue;
        Fees and Expenses - ANY
        ACTION AT LAW, SUIT IN EQUITY OR JUDICIAL PROCEEDING ARISING DIRECTLY,
        INDIRECTLY, OR OTHERWISE IN CONNECTION WITH, OUT OF, RELATED TO OR FROM THIS
        AGREEMENT, OR ANY PROVISION HEREOF, SHALL BE LITIGATED ONLY IN THE STATE
        COURTS
        LOCATED IN THE STATE OF CONNECTICUT, COUNTY OF FAIRFIELD OR THE FEDERAL COURTS
        IN THE DISTRICT WHICH COVERS SUCH COUNTY. ALLEN AND THE COMPANY CONSENT TO
        THE
        JURISDICTION OF SUCH COURTS. THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER
        ITS REASONABLE ATTORNEYS’ FEES AND COSTS IN ANY SUCH
        ACTION.

       

      (j)  Waiver
        of
        Right to Jury Trial - EACH
        PARTY HERETO HEREBY WAIVES, EXCEPT TO THE EXTENT OTHERWISE REQUIRED BY
        APPLICABLE LAW, THE RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
        

       

      
        
          
          

        

        
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      BETWEEN
        THE PARTIES HERETO ARISING OUT OF OR IN CONNECTION WITH THIS
        AGREEMENT.

       

      (k)  Third-Party
        Benefit - Nothing in this Agreement, express or implied, is intended to confer
        upon any other person any rights, remedies, obligations or liabilities of
        any
        nature whatsoever.

       

      (l)  Withholding
        Taxes - The Company may withhold from any benefits payable under this Agreement
        all federal, state, city or other taxes as shall be required pursuant to
        any law
        or governmental regulation or ruling.

       

      
        
          
          

        

        
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      THE
        PARTIES ACKNOWLEDGE THAT EACH HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND
        AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, THE PARTIES AGREE
        THAT
        THIS AGREEMENT AND ANY EXHIBITS HERETO ARE THE COMPLETE AND EXCLUSIVE STATEMENT
        OF THE AGREEMENT BETWEEN THE PARTIES, WHICH SUPERSEDES ALL PROPOSALS OR ALL
        PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE
        PARTIES RELATING TO THE SUBJECT MATTER HEREOF.

      

      ACCEPTED
        AND AGREED: 

      

      
        	
                GLOBAL
                  MATRECHS, INC.

              	
                MARK
                  ALLEN

              
	
                 

                By:
                  

                President

              	 
	
                 

                /s/
                  Michael Sheppard
                  
                  

                

              	
                 

                /s/
                  Mark Allen

                  

                

                 

              
	 	 
	
                Date:
                  _____________________________

              	
                Date:
                  _____________________________

              

      

      

      

      

      

      

      
        
          
          

        

        
          -10-Unassociated Document

    EXHIBIT
      10.18

    

    EQUITY
      TRUST AGREEMENT

    

    

    This
      Equity
      Trust Agreement
      (hereinafter the “Agreement”),
      is
      entered into and effective this 20th day of May, 2005, by and between Yi Wan
      Group, Inc., a Florida corporation (the “Company”) on the one hand and
Minhong
      Cen,
      an
      individual and citizen of the People’s Republic of China (“PRC”), whose address
      is No. 29 Lianyun Lu, Daliang District, Shunde City, Guangdong Province, China,
      Chen Hong, an individual and citizen of the PRC, whose address is No. 53
      Zhanqian Lu, Jiefang District, Jiaozuo City, Henan Province, China and Cheng
      Wan
      Ming, an individual and citizen of the PRC, whose address is No. 11 Lianyun
      Erlu, Daling District, Shunde City, Guangdong Province, China (Minhong
      Cen,
      Chen
      Hong and Cheng Wan Ming collectively referred to as the “Trustees”), with
      reference to the following facts:

     

    RECITALS:

    

    WHEREAS,
      the
      Company wishes to form and capitalize Yi Wan Zhengzhou Restaurants Management,
      Ltd. (“Yi Wan Zhengzhou”), a company registered in Zhengzhou, PRC, engaged in
      the business of restaurants operation and to have the equity interest of Yi
      Wan
      Zhengzhou held in trust by the Trustees;

    

    WHEREAS,
      the
      Company has transferred RMB 3,010,000 to the Trustees and the Trustees used
      such
      proceeds to form and capitalize Yi Wan Zhengzhou and are holding the equity
      interest of Yi Wan Zhengzhou (the “Equity Interest”) 10% in the name of
Minhong
      Cen,
      10% in
      the name of Chen Hong and 80% in the name of Cheng Wan Ming;

    

    WHEREAS,
      as a
      condition to receiving and holding the Equity Interest in trust for the Company,
      the Trustees have agreed to grant the Company the rights set forth in this
      Agreement; 

    

    WHEREAS,
      the
      Trustees are directors of the Company and has consented to act under this
      Agreement for the purposes provided herein.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the agreements, provisions and promises
      contained herein, and for valuable consideration, the receipt and sufficiency
      of
      which are hereby mutually acknowledged and confessed, the parties to this
      Agreement (hereinafter collectively called the “parties”
      and
      individually “party”)
      agree
      as follows:

    

    AGREEMENT:

    

    
      	
            	1.	
              ESTABLISHMENT
                OF TRUST.
                

            

    

     

    (a)  
      Equity
      Interest To Be Held In Trust.
      The
      Trustees hereby agree to hold the Equity Interest in trust for the benefit
      of
      the Company pursuant to the terms of this Agreement until the termination of
      this Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  
      Acknowledgement
      of Delivery of Equity Interest.
      The
      Trustees hereby acknowledge and accept delivery of the Equity Interest to be
      held for the benefit of the Company. 

     

    (c)  
      Stock
      Adjustments.
      In the
      event that, during the term of this Agreement, any reclassification,
      readjustment, or other change is declared or made in the capital structure
      of
      the Yi Wan Zhengzhou, all new substituted and additional equity interests with
      voting rights (hereinafter, collectively or severally, the “Additional Interests”)
      issued
      or granted with respect to the Equity Interest by reason of any such change
      shall also be held by the Trustee subject to the terms of this Agreement in
      the
      same manner as the Equity Interest.

     

    
      	
            	2.	
              RIGHTS
                & RESTRICTIONS WITH RESPECT TO EQUITY
                INTEREST.

            

    

     

    (a)  
      Voting
      Rights.
      Contemporaneous to entering into this Agreement, the Trustees shall grant
      irrevocable proxies to exercise all voting rights as an equity holder of Yi
      Wan
      Zhengzhou in the form attached hereto as Exhibit “A” (the “Proxy”).

     

    (b)  
      Restrictions
      on Transfer.
      The
      Trustees shall have no authority to sell, pledge, hypothecate, encumber or
      otherwise dispose of the Equity Interest except as authorized by the Company.
      Any attempt to transfer the Equity Interest without authorization by the Company
      shall be a breach of this Agreement and as soon as practicable after such
      breach, the Trustee shall cause to be transferred, issued and delivered to
      the
      Company applicable certificates representing the Equity Interest, properly
      endorsed to the Company.

     

    (c)  
      Notices,
      Dividends and Distributions.
      The
      Trustees shall forward to the Company all notices, reports, statements and
      other
      communications received from Yi Wan Zhengzhou. The Trustee shall distribute
      to
      the Company or its designee, promptly upon receipt, all dividends and other
      payments or distributions received from Yi Wan Zhengzhou with respect to the
      Equity Interest. 

    

    (d)  
      No
      Compensation to Trustees.
      The
      Trustees shall receive no additional compensation for the Trustees’ services
      under this Agreement but the Company shall promptly reimburse the Trustees
      for
      expenses actually incurred in performing duties hereunder after presentation
      to
      the Company of receipts for such expenses.

    

    (e)  
      Liability
      of Trustees.
      The
      Trustees shall not be liable for any error of judgment or mistake of fact or
      law, or for any action or omission under this Agreement, except for the
      Trustees’ own willful misconduct or gross negligence. The Trustees may consult
      with legal counsel, and any action or omission undertaken by the Trustees in
      good faith in accordance with the opinion of legal counsel shall be binding
      and
      conclusive on the parties.

    

    
      	
            	3.	
              TERM
                OF AGREEMENT.

            

    

     

    (a)  
      Events
      of Termination.
      This
      Agreement shall terminate automatically upon the earlier of:

     

    (i) The
      Company or its designated assignee can legally take position of the Equity
      Interest under the laws of the PRC and the Company has chosen to so take
      position of the Equity Interest; 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (ii) The
      material breach by any one of the Trustees of his obligations under this
      Agreement;

    

    (iii) Upon
      5
      days notice at any time by the Company.

    

    (b)  
      Transfer
      of Equity Interest to Company.
      As
      soon
      as practicable after the termination of this Agreement, the Trustees shall
      cause
      to be transferred, issued and delivered to the Company applicable certificates
      representing the Equity Interest, properly endorsed for transfer to the Company.
      

     

    (c)  
      Resignation,
      Death, Termination or Incapacity of Trustee.
      In the
      event of: (i) the resignation as trustee; (ii) death of one of the Trustees;
      (iii) termination of one of the Trustees as an employee, director or officer
      of
      the Company or its subsidiaries; or (iv) incapacity of one of the Trustees,
      the
      Company may appoint and cause a transfer of the Equity Interest to a successor
      trustee to hold the Equity Interest for the benefit of the Company and may
      appoint any another person, including the other Trustee, for the sole purpose
      of
      accomplishing the above described transfer.

    

    
      	
            	4.	
              FILING,
                INSPECTION RIGHTS.

            

    

     

    A
      duplicate of this Agreement shall be filed with Yi Wan Zhengzhou and shall
      be
      open for inspection on the same conditions as the Company’s record of
      shareholders.

    

    
      	
            	5.	
              REPRESENTATIONS
                AND WARRANTIES

            

    

     

    (a)  
      The
      Company represents and warrants that it is a corporation registered and validly
      existing under the laws of the State of Florida in the United States. The
      Company has full right, power and all necessary approvals and authorizations
      to
      execute and perform this Agreement. This Agreement shall constitute the legal,
      valid and binding obligations of the Company, which is enforceable against
      the
      Company in accordance with its terms upon its execution.

     

    (b)  
      Each
      of
      the Trustees represent and warrant to the Company that: (i) Yi Wan Zhengzhou
      is
      a limited liability company registered and validly existing under the laws
      of
      the PRC and the Trustees are holding title to 100% of Yi Wan Zhengzhou for
      the
      benefit of the Company; (ii) has full right, power and all necessary and
      appropriate approval and authorization to execute and perform this Agreement;
      (iii) the execution and the performance of this Agreement will not contravene
      any provision of law applicable to the Trustees or any other contractual
      restrictions binding on or affecting the Trustees; and (iv) this Agreement
      shall
      constitute the legal and valid obligations of each of the Trustees, which is
      enforceable against the Trustees in accordance with its terms upon its
      execution. 

    

    
      	
            	6.	
              MISCELLANEOUS.

            

    

     

    (a)  
      Cooperation.
      Each
      party agrees, without further consideration, to cooperate and diligently perform
      any further acts, deeds and things and to execute and deliver any documents
      that
      may from time to time be reasonably required to consummate, evidence, confirm
      and/or carry out the intent and provisions of this Agreement, all without undue
      delay or expense. 

    
       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (b)  
        Interpretation
        and Enforcement.

    

     

    (i)  
      Applicable
      Law.
      THIS
      AGREEMENT AND THE RIGHTS AND REMEDIES OF EACH PARTY ARISING OUT OF OR RELATING
      TO THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, EQUITABLE REMEDIES) SHALL
      BE
      SOLELY GOVERNED BY, INTERPRETED UNDER, AND CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH INTERNAL LAWS OF THE STATE OF FLORIDA, WITHOUT REGARD TO CONFLICTS OF
      LAWS
      PRINCIPLES AS IF THIS AGREEMENT WERE MADE, AND AS IF ITS OBLIGATIONS ARE TO
      BE
      PERFORMED, WHOLLY WITHIN THE STATE OF FLORIDA. 

     

    (ii)  
      Consent
      to Jurisdiction.
      ANY
      ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL, SUBJECT
      TO PARAGRAPH
      6(c)
      OF THIS AGREEMENT PERTAINING TO ARBITRATION, BE FILED IN AND HEARD AND LITIGATED
      SOLELY BEFORE THE STATE COURTS OF CALIFORNIA LOCATED WITHIN THE COUNTY OF
LOS
      ANGELES.
      EACH PARTY GENERALLY AND UNCONDITIONALLY ACCEPTS THE EXCLUSIVE JURISDICTION
      OF
      SUCH COURTS AND WAIVES ANY DEFENSE OR RIGHT TO OBJECT TO VENUE IN SAID COURTS
      BASED UPON THE DOCTRINE OF “FORUM NON CONVENIENS”. EACH PARTY IRREVOCABLY AGREES
      TO BE BOUND BY ANY JUDGEMENT RENDERED THEREBY IN CONNECTION WITH THIS
      AGREEMENT.

     

    (iii)  
      Waiver
      of Jury Trial. EACH
      PARTY HEREBY WAIVES SUCH PARTY’S RESPECTIVE RIGHT TO A JURY TRIAL OF ANY CLAIM
      OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. EACH PARTY
      ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO THE OTHER PARTY TO
      ENTER INTO THE TRANSACTION CONTEMPLATED HEREBY, THAT EACH PARTY HAS ALREADY
      RELIED UPON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH PARTY
      WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR FUTURE DEALINGS. EACH PARTY
      WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH SUCH
      PARTY’S LEGAL COUNSEL, AND THAT SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVED
      ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
      COUNSEL.

     

    (iv)  
      Specific
      Performance and Injunctive Relief.
      EACH
      PARTY ACKNOWLEDGES THAT THE OTHER PARTY HERETO MAY, AS A RESULT OF SUCH PARTY’S
      BREACH OF ITS COVENANTS AND OBLIGATIONS UNDER THIS AGREEMENT, SUSTAIN IMMEDIATE
      AND LONG-TERM SUBSTANTIAL AND IRREPARABLE INJURY AND DAMAGE WHICH CANNOT BE
      REASONABLY OR ADEQUATELY COMPENSATED BY DAMAGES AT LAW. CONSEQUENTLY, EACH
      PARTY
      AGREES THAT IN THE EVENT OF SUCH PARTY’S BREACH OR THREATENED BEACH OF ITS
      COVENANTS AND OBLIGATIONS HEREUNDER, THE OTHER NON-BREACHING PARTY SHALL BE
      ENTITLED TO OBTAIN EQUITABLE RELIEF, IN ADDITION TO ANY OTHER REMEDY PROVIDED
      BY
      LAW OR EQUITY, INCLUDING, WITHOUT LIMITATION, ENFORCEMENT OF ALL OF THE
      PROVISIONS OF THIS AGREEMENT BY SPECIFIC PERFORMANCE AND/OR TEMPORARY,
      PRELIMINARY AND/OR PERMANENT INJUNCTIONS ENFORCING ANY OF SUCH NON-BREACHING
      PARTY’S RIGHTS, REQUIRING PERFORMANCE BY THE BREACHING PARTY, OR ENJOINING ANY
      BREACH BY THE BREACHING PARTY, ALL WITHOUT PROOF OF ANY ACTUAL DAMAGES THAT
      HAVE
      BEEN OR MAY BE CAUSED TO SUCH NON-BREACHING PARTY BY SUCH BREACH OR THREATENED
      BREACH AND WITHOUT THE POSTING OF BOND OR OTHER SECURITY IN CONNECTION
      THEREWITH. THE PARTY AGAINST WHOM SUCH ACTION OR PROCEEDING IS BROUGHT WAIVES
      THE CLAIM OR DEFENSE THEREIN THAT THE PARTY BRINGING THE ACTION OR PROCEEDING
      HAS AN ADEQUATE REMEDY AT LAW AND SUCH PARTY SHALL NOT ALLEGE OR OTHERWISE
      ASSERT THE LEGAL POSITION THAT ANY SUCH REMEDY AT LAW EXISTS. EACH PARTY AGREES
      AND ACKNOWLEDGES (A) THAT THE TERMS OF THIS PARAGRAPH ARE FAIR, REASONABLE
      AND
      NECESSARY TO PROTECT THE LEGITIMATE INTERESTS OF THE OTHER PARTY; (B) THAT
      THIS
      WAIVER IS A MATERIAL INDUCEMENT TO THE OTHER PARTY TO ENTER INTO THE TRANSACTION
      CONTEMPLATED HEREBY, (C) THAT THE OTHER PARTY HAS ALREADY RELIED UPON THIS
      WAIVER IN ENTERING INTO THIS AGREEMENT, AND (D) THAT EACH PARTY WILL CONTINUE
      TO
      RELY ON THIS WAIVER IN THEIR FUTURE DEALINGS. EACH PARTY WARRANTS AND REPRESENTS
      THAT SUCH PARTY HAS REVIEWED THIS PROVISION WITH SUCH PARTY’S LEGAL COUNSEL, AND
      THAT SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS RIGHTS FOLLOWING
      CONSULTATION WITH LEGAL COUNSEL.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (v)  
      Attorneys’
      Fees and Costs.
      If any
      party institutes or should the parties otherwise become a party to any Action
      or
      Proceeding based upon or arising out of this Agreement including, without
      limitation, to enforce or interpret this Agreement or any provision hereof,
      or
      for damages by reason of any alleged breach of this Agreement or any provision
      hereof, or for a declaration of rights in connection herewith, or for any other
      relief, including equitable relief, in connection herewith, the prevailing
      party
      in any such action or proceeding shall be entitled to receive from the
      non-prevailing party as a cost of suit, and not as damages, all costs and
      expenses of prosecuting or defending the action or proceeding, whichever the
      case may be, including, without limitation, reasonable attorneys’ and other
      professional fees such as engineering or accounting fees incurred by the
      prevailing party in connection with such action or proceeding.

     

    (vi)  
      Definitions.
      The
      term “Action or Proceeding”
      shall
      mean and include actions, proceedings, suits, arbitrations (if required or
      permitted under this Agreement or consented to by the parties), appeals and
      other similar proceedings. The term “prevailing party”
      shall
      mean the party who is determined to prevail by the Court after its consideration
      of all damages and equities in the action or proceeding, whether or not the
      action or proceeding proceeds to final judgment. In determining whether a party
      is the prevailing party the Court shall consider as an element of its
      determination the costs and expenses of the parties, including attorneys’ fees
      and other fees, which are the subject of this Paragraph
      6.
      The
      Court shall retain the discretion to determine that no party is the prevailing
      party in which case no party shall be entitled to recover its costs and expenses
      under this Paragraph
      6.
      The
      term “attorneys’ and other fees”
      shall
      mean and include attorneys’ fees, accountants’ fees, fees of other
      professionals, witness fees (including experts engaged by the parties, but
      excluding shareholders, officers, employees or partners of the parties), and
      any
      and all other similar fees incurred in the prosecution or defense of the action
      or proceeding. The term “costs and expenses”
      shall
      mean and include the cost to take depositions, the cost to arbitrate this
      dispute, if applicable, and the costs and expenses of travel and lodging
      incurred with respect to the action or proceeding, provided, however, the party
      incurring said travel and lodging expense must ordinarily travel over one
      hundred (100) miles, one way, from his or her residence in incurring such
      expense.

     

    (c)   
      Arbitration.

     

    (i)  
      Jurisdiction.
      The
      parties hereby agree to submit all controversies, claims and matters of
      difference to arbitration in Los
      Angeles
      County,
      California, according to the rules and practices of the American Arbitration
      Association from time-to-time in force, except to the extent that such rules
      and
      practices are inconsistent with the provisions of this Paragraph
      6(c).
      This
      submission and agreement to arbitrate shall be specifically enforceable. Without
      limiting the generality of the foregoing, the following shall be considered
      controversies for this purpose: (A) all questions relating to the breach of
      any
      obligation, warranty, right or condition hereunder; (B) the failure of any
      party
      to deny or reject a claim or demand of any other party; and (C) any question
      as
      to whether the right to arbitrate a certain dispute exists. Arbitration may
      proceed in the absence of any party if written notice (pursuant to the American
      Arbitration Association’s rules and regulations) of the proceedings has been
      given to such party. The parties agree to abide by all awards rendered in such
      proceedings. Such awards shall be final and binding on all parties to the extent
      and in the manner provided by California statute. All awards may be filed with
      the clerk of the district court in the county in which the residence or
      principal office of a non-prevailing party is located, as a basis of judgment
      and of the issuance of execution for its collection and, at the election of
      the
      party making such filing, with the clerk of one or more other courts, state
      or
      federal, having jurisdiction over the party against whom such an award is
      rendered or such party’s property.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (ii)  
      Selection
      of Arbitrator.
      The
      parties shall mutually agree upon one (1) arbitrator who shall be selected
      pursuant to the rules of the American Arbitration Association. 

     

    (iii)  
      Application
      of Law; Scope of Powers; Written Decision.
      The
      arbitrator(s) shall apply such principles of law as hereinabove provided in
      Paragraph
      6(b)
      of this
      Agreement relating to application of law, and shall endeavor to decide the
      controversy as though they were judges in such court of law. The arbitrator(s)
      shall have the power to issue any award, judgment, decree or order of relief
      that a court of law or equity could issue under such applicable law including
      but not limited to, money damages, specific performance, or injunctive relief;
      and for such purposes it is hereby expressly acknowledged and agreed that
      damages at law will be an inadequate remedy for a breach or threatened breach
      of
      any provision of this Agreement, it being the intention of this sentence to
      make
      clear the agreement of the parties hereto that the respective rights and
      obligations of the parties hereto hereunder shall be enforceable in any
      arbitration proceedings in accordance with principles of equity as well as
      of
      law. The arbitrator(s) shall prepare a written decision that will be supported
      by written findings of fact and conclusions which adequately set forth the
      basis
      of the arbitrator(s)’ decision and which cite the statutes and precedents
      applied and relied upon in reaching said decision. The award, judgment, decree
      or order, and the findings of the arbitrator(s), shall be final, conclusive
      and
      binding upon the parties hereto, and the judgment upon the award and enforcement
      of any other judgment, decree or order of relief granted by the arbitrator(s)
      may be entered or obtained in any court of competent jurisdiction upon the
      application of any party to the dispute. This agreement to arbitrate shall
      be
      self-executing without the necessity of filing any action in any court and
      shall
      be specifically enforceable under the prevailing arbitration law.

     

    (d)  
      Entire
      Agreement/No Collateral Representations. EACH
      PARTY EXPRESSLY ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT: (i) IS THE FINAL,
      COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT OF THE PARTIES AGREEMENT
      WITH
      RESPECT TO THE SUBJECT MATTER HEREOF, (ii) SUPERSEDES ANY PRIOR OR
      CONTEMPORANEOUS PROMISES, ASSURANCES, GUARANTEES, REPRESENTATIONS,
      UNDERSTANDINGS, CONDUCT, PROPOSALS, CONDITIONS, COMMITMENTS, ACTS, COURSE OF
      DEALING, WARRANTIES, INTERPRETATIONS OR TERMS OF ANY KIND, ORAL OR WRITTEN
      (HEREINAFTER COLLECTIVELY CALLED THE “PRIOR AGREEMENTS”),
      AND THAT ANY SUCH PRIOR AGREEMENTS ARE OF NO FORCE OR EFFECT EXCEPT AS EXPRESSLY
      SET FORTH HEREIN, AND (iii) MAY NOT BE VARIED, SUPPLEMENTED OR CONTRADICTED
      BY
      EVIDENCE OF SUCH PRIOR AGREEMENTS, OR BY EVIDENCE OF SUBSEQUENT ORAL
      AGREEMENTS.
      Any
      agreement hereafter made shall be ineffective to modify, supplement or discharge
      the terms of this Agreement, in whole or in part, unless such agreement is
      in
      writing and signed by the party against whom enforcement of the modification,
      supplement or is sought.

     

    (e)  
      No
      Reliance Upon Prior Representation.
      Each
      party acknowledges that no other party has made any oral representation or
      promise to such party which representation or promise would induce such party
      prior to executing this Agreement to change its position to its detriment,
      partially perform, or part with value in reliance upon such representation
      or
      promise; such party acknowledges that it has taken such action at its own risk;
      and such party represents that it has not so changed its position, performed
      or
      parted with value prior to the time of its execution of this
      Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (f)  
      Waiver.
      No
      breach of any agreement or provision herein contained, or of any obligation
      under this Agreement, may be waived, nor shall any extension of time for
      performance of any obligations or acts be deemed an extension of time for
      performance of any other obligations or acts contained herein, except by written
      instrument signed by the party to be charged or as otherwise expressly
      authorized herein. No waiver of any breach of any agreement or provision herein
      contained shall be deemed a waiver of any preceding or succeeding breach
      thereof, or a waiver or relinquishment of any other agreement or provision
      or
      right or power herein contained.

     

    (g)  
      Remedies
      Cumulative.
      The
      remedies of each party under this Agreement are cumulative and shall not exclude
      any other remedies to which such party may be lawfully entitled.

     

    (h)  
      Severability.
      If any
      term or provision of this Agreement or the application thereof to any person
      or
      circumstance shall, to any extent, be determined to be invalid, illegal or
      unenforceable, then the performance of the offending term or provision (but
      only
      to the extent its application is invalid, illegal or unenforceable) shall be
      excused as if it had never been incorporated into this Agreement, and the
      remaining part of this Agreement (including the application of the offending
      term or provision to persons or circumstances other than those as to which
      it is
      held invalid, illegal or unenforceable) shall not be affected thereby and shall
      continue in full force and effect to the fullest extent provided by law.

     

    (i)  
      Time
      is of the Essence.
      It is
      expressly understood and agreed that time of performance is strictly of the
      essence with respect to each and every term, condition, obligation and provision
      hereof and that the failure to timely perform any of the terms, conditions,
      obligations or provisions hereof by any party shall constitute a material breach
      of and a non-curable (but waivable) default under this Agreement by the party
      so
      failing to perform.

     

    (j)  
      Effect
      Upon Successors and Assigns.
      All of
      the representations, warranties, covenants, conditions and provisions of this
      Agreement shall be binding upon and shall inure to the benefit of each party
      and
      such party’s respective heirs, executors, administrators, legal representatives,
      successors and/or assigns, whichever the case may be (hereinafter collectively
      called “Permitted Successors”).

     

    (k)  
      No
      Third Party Beneficiary.
      Notwithstanding anything else herein to the contrary, the parties specifically
      disavow any desire or intention to create a “third party” beneficiary contract,
      and specifically declare that no person or entity, save and except for the
      parties or their Permitted Successors, shall have any rights hereunder nor
      any
      right of enforcement hereof.

     

    (l)  
      Construction.
      The
      headings used in this Agreement are for convenience and reference purposes
      only,
      and shall not be used in construing or interpreting the scope or intent of
      this
      Agreement or any provision hereof. References to this Agreement shall include
      all amendments or renewals thereof. All cross–references in this Agreement,
      unless specifically directed to another agreement or document, shall be
      construed only to refer to provisions within this Agreement, and shall not
      be
      construed to be referenced to the overall transaction or to any other agreement
      or document. As used in this Agreement, each gender shall be deemed to include
      each other gender, including neutral genders or genders appropriate for
      entities, if applicable, and the singular shall be deemed to include the plural,
      and vice versa, as the context requires.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (m)  
      Notices.
      Unless
      otherwise specifically provided in this Agreement, all notices, demands,
      requests, consents, approvals or other communications (hereinafter collectively
      and severally called “Notices”)
      required or permitted to be given hereunder, or which are given with respect
      to
      this Agreement, shall be in writing, and shall be given by personal delivery,
      telegraph or by express mail, Federal Express, DHL or other similar form of
      nationally recognized airborne/overnight delivery service (which forms of Notice
      shall be deemed to have been given upon delivery), or by telex or facsimile
      transmission (which forms of Notice shall be deemed delivered upon confirmed
      transmission), or by mailing in the United States mail by registered or
      certified mail, return receipt requested, postage prepaid (which forms of Notice
      shall be deemed to have been given upon the third {3rd} business day following
      the date mailed). Each party, and their respective counsel, hereby agree that
      if
      Notice is to be given hereunder by such party’s counsel, such counsel may
      communicate directly with all principals, as required to comply with the
      foregoing notice provisions. 

     

    Notices
      shall be addressed to the appropriate party as set forth in the introductory
      paragraph of this Agreement, or to such other address as the receiving party
      shall have specified most recently by like Notice, with a copy to the other
      parties hereto. Any Notice given to the estate of a party shall be sufficient
      if
      addressed to the party as provided in this Paragraph
      6(m).

     

    (n)  
      Counterparts.
      This
      Agreement may be executed in two (2) or more counterparts, each of which shall
      be deemed an original, and all of which together shall constitute but one and
      the same instrument, binding on all parties hereto. Any signature page of this
      Agreement may be detached from any counterpart of this Agreement and reattached
      to any other counterpart of this Agreement identical in form hereto but having
      attached to it one or more additional signature pages.

     

    (o)  
      Execution
      by All Parties Required to be Binding.
      This
      Agreement shall not be construed to be an offer and shall have no force and
      effect until this Agreement is fully executed by all parties
      hereto.

     

    WHEREFORE,
      the
      parties hereto have executed this Agreement on the dates and at the places
      written below.

     

    (SIGNATURES
      FOLLOW)

    
       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

     

    WHEREFORE,
      the
      parties hereto have for purposes of this Agreement executed this Agreement
      in
      the City of Jiaozuo, People’s Republic of China, as of the date first
      hereinabove set forth.

     

    
      	 	 	 
	THE
              COMPANY:	
              Yi
                Wan Group, Inc.,

              a Florida corporation

            
	 
 	 
 	 
 
	 	By:  	/s/ Cheng
              Wan Ming
	 	
              

            
	 	
              Cheng
                Wan Ming

              President & Chief Executive
                Officer

            

    

     

    
      	TRUSTEES:  	 	 
	 	 	 
	 	/s/ Cheng
              Wan Ming
	 	
              

            
	 	Cheng Wan Ming
	 	 
	 	 
	 	/s/ Minhong Cen
	 	
              

            
	 	Minhong Cen
	 	 
	 	 
	 	/s/ Chen Hong
	 	
              

            
	 	Chen Hong
	 	 

    

     

    Acknowledgement
      of Yi Wan Zhengzhou Restaurant Management, Ltd.

    

    The
      undersigned has received a copy of this Agreement and confirms that Yi Wan
      Zhengzhou Restaurants Management, Ltd. shall abide by its terms and
      conditions.

    
       

      
        	 	 	 
	 	
                
                  Yi
                    Wan Zhengzhou Restaurant Management, Ltd.,

                   a
                    PRC limited liability company

                

              
	 
 	 
 	 
 
	 	By:  	/s/ Wang
                Jun
	 	
                

              
	 	
                Name: 
                  Wang Jun

                Title:  General
                  Manager

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      “A”

    

    Proxy

    

    

    PROXY

    

    
      	Principal:	
              Cheng
                Wan Ming

            

    

    
      	ID
              Number:	
              440623610722061
                

            

    

    
      	Address:	
              No.11
                Lianyun Erlu, Daliang District, Shunde City,

              Guangdong Province,
                China

            

    

     

    
      	Agent:	
              Cheng
                Wan Qing

            

    

    
      	ID
              Number:	
              440623196910010619

            

    

    
      	Address:	
              No.29
                Lianyun Lu, Daliang District, Shunde City, 

              Guangdong Province,
                China

            

    

    

    The
      undersigned, Cheng Wan Ming, being a citizen of the People’s Republic of China
      (“PRC”), hereby grants an irrevocable proxy to Cheng Wan Qing to exercise all
      voting rights as a shareholder of Yi
      Wan
      Zhengzhou Restaurants Management Ltd. (“Yi
      Wan
      Zhengzhou”),
      including without limitation rights to appoint directors, the general manager
      and other officers of Yi Wan Zhengzhou during shareholders’ meetings of Yi Wan
      Zhengzhou within the term of this Proxy.

    

    The
      proxy
      granted hereby shall be conditioned upon Cheng Wan Qing being a PRC citizen
      and
      an employee, officer or director of Yi Wan Group, Inc. (the “Group”) or Jiaozuo
      Yi Wan Hotel Co., Ltd. (“Jiaozuo Yi Wan”) and shall be subject to the Group’s
      consent. Once Cheng Wan Qing ceases to be an employee, officer or director
      of
      the Group or Jiaozuo Yi Wan, or the Group delivers a written notice to the
      undersigned requesting a termination of this proxy, the undersigned shall revoke
      the proxy granted hereunder immediately and grant the rights and powers provided
      hereunder to another PRC citizen employed and designated by the
      Group.

    

    In
      exercising the rights and powers provided hereunder, Cheng Wan Qing shall act
      with due care and diligence pursuant to this proxy and applicable laws, shall
      indemnify and keep the undersigned harmless from any loss or damage caused
      by
      any action in connection with the exercise of any rights provided hereunder
      (unless such loss or damage is caused by any intentional or material negligent
      actions of the undersigned), and shall otherwise be legally and economically
      liable to the undersigned and Yi Wan Zhengzhou.

    

    The
      term
      of this Proxy shall be 10 years from the execution date of this Proxy. Unless
      with written consent by the undersigned to terminate the proxy thirty (30)
      days
      in advance, the term of this proxy shall be automatically be renewed for another
      year.

     

    
      	 	 	 
	 
 	 
 	 
 
	 	/s/ Cheng
              Wan Ming
	 	
              

            
	 	Cheng Wan Ming
	 	May 20, 2005
	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    PROXY

    
 

    
      
        	Principal:	
                Minhong
                  Cen

              

      

      
        	ID
                Number:	
                440623196206110624

              

      

      
        	Address:	
                No.29
                  Lianyun Lu, Daliang District, Shunde City,

                Guangdong Province,
                  China

              

      

       

      
        	Agent:	
                Yingliu
                  You

              

      

      
        	ID
                Number:	
                440623410506041

              

      

      
        	Address:	
                No.172
                  Huagai Lu, Daliang District, Shunde City,

                Guangdong Province,
                  China

              

      

      

    The
      undersigned, Minhong Cen, being a citizen of the People’s Republic of China
      (“PRC”), hereby grants an irrevocable proxy to Yingliu You to exercise all
      voting rights as a shareholder of Yi
      Wan
      Zhengzhou Restaurants Management Ltd. (“Yi
      Wan
      Zhengzhou”),
      including without limitation rights to appoint directors, the general manager
      and other officers of Yi Wan Zhengzhou during shareholders’ meetings of Yi Wan
      Zhengzhou within the term of this Proxy.

    

    The
      proxy
      granted hereby shall be conditioned upon Yingliu You being a PRC citizen and
      an
      employee, officer or director of Yi Wan Group, Inc. (the “Group”) or Jiaozuo Yi
      Wan Hotel Co., Ltd. (“Jiaozuo Yi Wan”) and shall be subject to the Group’s
      consent. Once Yingliu You ceases to be an employee, officer or director of
      the
      Group or Jiaozuo Yi Wan, or the Group delivers a written notice to the
      undersigned requesting a termination of this proxy, the undersigned shall revoke
      the proxy granted hereunder immediately and grant the rights and powers provided
      hereunder to another PRC citizen employed and designated by the
      Group.

    

    In
      exercising the rights and powers provided hereunder, Yingliu You shall act
      with
      due care and diligence pursuant to this proxy and applicable laws, shall
      indemnify and keep the undersigned harmless from any loss or damage caused
      by
      any action in connection with the exercise of any rights provided hereunder
      (unless such loss or damage is caused by any intentional or material negligent
      actions of the undersigned), and shall otherwise be legally and economically
      liable to the undersigned and Yi Wan Zhengzhou.

    

    The
      term
      of this Proxy shall be 10 years from the execution date of this Proxy. Unless
      with written consent by the undersigned to terminate the proxy thirty (30)
      days
      in advance, the term of this proxy shall be automatically be renewed for another
      year.

     

    
      
        	 	 	 
	 	/s/ Minhong Cen
	 	
                

              
	 	Minhong Cen
	 	May 20, 2005
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    PROXY

     

    
      
        
          	Principal:	
                  Chen
                    Hong

                

        

        
          	ID
                  Number:	
                  410107196510241538

                

        

        
          	Address:	
                  No.
                    53 Zhanqian Lu, Jiefang District, Jiaozuo City,

                  Henan Province,
                    China

                

        

         

        
          	Agent:	
                  Yingliu
                    You

                

        

        
          	ID
                  Number:	
                  440623410506041

                

        

        
          	Address:	
                  No.172
                    Huagai Lu, Daliang District, Shunde City,

                  Guangdong Province,
                    China

                

        

         

        The
          undersigned, Chen Hong, being a citizen of the People’s Republic of China
          (“PRC”), hereby grants an irrevocable proxy to Yingliu You to exercise all
          voting rights as a shareholder of Yi
          Wan
          Zhengzhou Restaurants Management Ltd. (“Yi
          Wan
          Zhengzhou”),
          including without limitation rights to appoint directors, the general manager
          and other officers of Yi Wan Zhengzhou during shareholders’ meetings of Yi Wan
          Zhengzhou within the term of this Proxy.

      

    

    

    The
      proxy
      granted hereby shall be conditioned upon Yingliu You being a PRC citizen and
      an
      employee, officer or director of Yi Wan Group, Inc. (the “Group”) or Jiaozuo Yi
      Wan Hotel Co., Ltd. (“Jiaozuo Yi Wan”) and shall be subject to the Group’s
      consent. Once Yingliu You ceases to be an employee, officer or director of
      the
      Group or Jiaozuo Yi Wan, or the Group delivers a written notice to the
      undersigned requesting a termination of this proxy, the undersigned shall revoke
      the proxy granted hereunder immediately and grant the rights and powers provided
      hereunder to another PRC citizen employed and designated by the
      Group.

    

    In
      exercising the rights and powers provided hereunder, Yingliu You shall act
      with
      due care and diligence pursuant to this proxy and applicable laws, shall
      indemnify and keep the undersigned harmless from any loss or damage caused
      by
      any action in connection with the exercise of any rights provided hereunder
      (unless such loss or damage is caused by any intentional or material negligent
      actions of the undersigned), and shall otherwise be legally and economically
      liable to the undersigned and Yi Wan Zhengzhou.

    

    The
      term
      of this Proxy shall be 10 years from the execution date of this Proxy. Unless
      with written consent by the undersigned to terminate the proxy thirty (30)
      days
      in advance, the term of this proxy shall be automatically be renewed for another
      year.

     

    
      
        	 	 	 
	 	/s/ Chen Hong
	 	
                

              
	 	Chen Hong
	 	May 20,
                2005

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