Document:

Exhibit 10.16

     

     

     

    CHINA
      WORLD TRADE CORPORATION

    PLACEMENT
      AGENT AGREEMENT

    

    

    Dated
      as
      of: June
      30,
      2005

    

    Cambria
      Capital, LLC

    Ladies
      and Gentlemen:

    

    The
      undersigned, China World Trade Corporation, a Nevada corporation (the
“Company”),
      hereby agrees with
      Cambria
      Capital, LLC (the “Placement
      Agent”)
      , as
      follows:

     

    1.
Offering.
      The
      Company hereby engages the Placement Agent to act as its exclusive placement
      agent in connection with the Standby Equity Distribution Agreement dated
      November 15, 2004 (the “Standby
      Equity Distribution Agreement”),
      pursuant to which the Company shall issue and sell to the Cornell Capital
      Partners, LP, a Delaware Limited Partnership (the “Investor”),
      from
      time to time, and the Investor shall purchase from the Company (the
“Offering”)
      up to
      Thirty Million U.S. Dollars ($30,000,000) of the Company’s common stock (the
“Commitment
      Amount”),
      par
      value US$0.001 per share (the “Common
      Stock”),
      at
      price per share equal to the Purchase Price, as that term is defined in the
      Standby Equity Distribution Agreement. The
      Placement Agent services
      shall
      consist of reviewing
      the
terms
      of
the
      Standby Equity Distribution Agreement and advising
      the
      Company with
      respect to those
      terms.

     

    All
      capitalized terms used herein and not otherwise defined herein shall have the
      same meaning ascribed to them as in the Standby Equity Distribution Agreement.
      The Investor will be granted certain registration rights with respect to the
      Common Stock as more fully set forth in the Registration Rights Agreement
      between the Company and the Investor dated the date hereof (the “Registration
      Rights Agreement”).
      The
      documents to be executed and delivered in connection with the Offering,
      including, but not limited, to the
      Company’s latest Quarterly Report on Form 10-QSB as filed with the United
      States Securities and Exchange Commission, this
      Agreement, the Standby Equity Distribution Agreement, the Registration Rights
      Agreement, and the Escrow Agreement dated the date hereof (the “Escrow
      Agreement”),
      are
      referred to sometimes hereinafter collectively as the “Offering
      Materials.”
      The
      Company’s Common Stock
      purchased by the Investor hereunder
      or to be
      issued in connection with the conversion of any warrants are sometimes referred
      to hereinafter as the “Securities.”
      The
      Placement Agent shall not be obligated to sell any Securities.

     

    2.
Compensation.

     

    Upon
      the
      execution of this Agreement, as compensation for its services hereunder, the
      Placement Agent shall be entitled on each Advance Date pursuant to the Standby
      Equity Distribution Agreement to the payment by the Company, directly from
      the
      gross proceeds held in escrow, of an amount equal to four percent (4%) of the
      amount of each Advance.

     

    
      
        
        

      

      
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    3.
Representations,
      Warranties and Covenants of the Placement Agent.

     

      The
      Placement Agent represents, warrants and covenants as follows:

     

    (i)  The
      Placement Agent has the necessary power to enter into this Agreement and to
      consummate the transactions contemplated hereby.

     

    (ii)  The
      execution and delivery by the Placement Agent of this Agreement and the
      consummation of the transactions contemplated herein will not result in any
      violation of, or be in conflict with, or constitute a default under, any
      agreement or instrument to which the Placement Agent is a party or by which
      the
      Placement Agent or its properties are bound, or any judgment, decree, order
      or,
      to the Placement Agent’s knowledge, any statute, rule or regulation applicable
      to the Placement Agent. This Agreement when executed and delivered by the
      Placement Agent, will constitute the legal, valid and binding obligations of
      the
      Placement Agent, enforceable in accordance with their respective terms, except
      to the extent that (a) the enforceability hereof or thereof may be limited
      by
      bankruptcy, insolvency, reorganization, moratorium or similar laws from time
      to
      time in effect and affecting the rights of creditors generally, (b) the
      enforceability hereof or thereof is subject to general principles of equity,
      or
      (c) the indemnification provisions hereof or thereof may be held to
      be in
      violation of public policy.

     

    (iii)  Upon
      receipt and execution of this Agreement, the Placement Agent will promptly
      forward copies of this Agreement to the Company or its counsel and the Investor
      or its counsel.

     

    (iv)  The
      Placement Agent will not intentionally take any action that it reasonably
      believes would cause the Offering to violate the provisions of the Securities
      Act of 1933, as amended (the “1933
      Act”),
      the
      Securities Exchange Act of 1934 (the “1934
      Act”),
      the
      respective rules and regulations promulgated thereunder
      (the
“Rules
      and Regulations”)
      or
      applicable “Blue Sky” laws of any state or jurisdiction.

     

    (v)  The
      Placement Agent is a member of the National Association of Securities Dealers,
      Inc., and is a broker-dealer registered as such under the 1934 Act and under
      the
      securities laws of the states in which the Securities will be offered or sold
      by
      the Placement Agent unless an exemption for such state registration is available
      to the Placement Agent. The Placement Agent is in material
      compliance
      with the
      rules
      and regulations applicable to the Placement Agent generally and applicable
      to
      the Placement Agent’s participation in the Offering.

     

    4.
Representations
      and Warranties of the
      Company.

     

    A.               
      The Company represents and warrants as follows:

     

    (i)  The
      execution, delivery and performance of each of this Agreement, the Standby
      Equity Distribution Agreement, the Escrow Agreement, and the Registration Rights
      Agreement has been or will be duly and validly authorized by the Company and
      is,
      or with respect to this Agreement, the Standby Equity Distribution Agreement,
      the Escrow Agreement, and the Registration Rights Agreement, will be a valid
      and
      binding agreement of the Company, enforceable in accordance with its respective
      terms, except to the extent that (a) the enforceability hereof or thereof may
      be
      limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
      from time to time in effect and affecting the rights of creditors generally,
      (b)
      the enforceability hereof or thereof is subject to general principles of equity
      or (c) the indemnification provisions hereof or thereof may be held
      to be
      in violation of public policy. The Securities to be issued pursuant to the
      transactions contemplated by this Agreement and the Standby Equity Distribution
      Agreement have been duly authorized and, when issued and paid for in accordance
      with this Agreement, the Standby Equity Distribution Agreement and the
      certificates/instruments representing such Securities, will be valid and binding
      obligations of the Company, enforceable in accordance with their respective
      terms, except to the extent that (1) the enforceability thereof may
      be
      limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
      from time to time in effect and affecting the rights of creditors generally,
      and
      (2) the enforceability thereof is subject to general principles of equity.
      All
      corporate action required to be taken for the authorization, issuance and sale
      of the Securities has been duly and validly taken by the Company.

     

    
      
        
        

      

      
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    (ii)  The
      Company has a duly authorized, issued and outstanding capitalization as set
      forth herein and in the Standby Equity Distribution Agreement. The Company
      is
      not a party to or bound by any instrument, agreement or other arrangement
      providing for it to issue any capital stock, rights, warrants, options or other
      securities, except for this Agreement, the agreements described herein and
      as
      described in the Standby Equity Distribution Agreement, dated the date hereof
      and the agreements described therein.
      All
      issued and outstanding securities of the Company, have been duly authorized
      and
      validly issued and are fully paid and non-assessable; the holders thereof have
      no rights of rescission or preemptive rights with respect thereto and are not
      subject to personal liability solely by reason of being security holders; and
      none of such securities were issued in violation of the preemptive rights of
      any
      holders of any security of the Company. 

     

    (iii)  The
      Common Stock to be issued in accordance with the Standby Equity Distribution
      Agreement has been duly authorized and, when issued and paid for in accordance
      with the Standby Equity Distribution Agreement and the certificates/instruments
      representing such Common Stock will be validly issued, fully-paid and
      non-assessable; the holders thereof will not be subject to personal liability
      solely by reason of being such holders; such Securities are not and will not
      be
      subject to the preemptive rights of any holder of any security of the
      Company.

     

    (iv)  The
      Company has good and marketable title to, or valid and enforceable leasehold
      estates in, all items of real and personal property necessary to conduct its
      business (including, without limitation, any real or personal property stated
      in
      the Offering Materials to be owned or leased by the Company), free and clear
      of
      all liens, encumbrances, claims, security interests and defects of any material
      nature whatsoever, other than those set forth in the Offering Materials and
      liens for taxes not yet due and payable.

     

    (v)  There
      is
      no litigation or governmental proceeding pending or, to the best of the
      Company’s knowledge, threatened against, or involving the properties or business
      of the Company, except as set forth in the Offering Materials. 

     

    
      
        
        

      

      
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    (vi)  The
      Company has been duly organized and is validly existing as a corporation in
      good
      standing under the laws of the State of Nevada. Except as set forth in the
      Offering Materials, the Company does not own or control, directly or indirectly,
      an interest in any other corporation, partnership, trust, joint venture or
      other
      business entity. The Company is duly qualified or licensed and in good standing
      as a foreign corporation in each jurisdiction in which the character of its
      operations requires such qualification or licensing and where failure to so
      qualify would have a material adverse effect on the Company. The Company has
      all
      requisite corporate power and authority, and all material and necessary
      authorizations, approvals, orders, licenses, certificates and permits of and
      from all governmental regulatory officials and bodies (domestic and foreign)
      to
      conduct its businesses (and proposed business) as described in the Offering
      Materials. Any disclosures in the Offering Materials concerning the effects
      of
      foreign, federal, state and local regulation on the Company’s businesses as
      currently conducted and as contemplated are correct in all material respects
      and
      do not omit to state a material fact. The Company has all corporate power and
      authority to enter into this Agreement, the Standby Equity Distribution
      Agreement, the Registration Rights Agreement, and the Escrow Agreement, to
      carry
      out the provisions and conditions hereof and thereof, and all consents,
      authorizations, approvals and orders required in connection herewith and
      therewith have been obtained. No consent, authorization or order of, and no
      filing with, any court, government agency or other body is required by the
      Company for the issuance of the Securities or execution and delivery of the
      Offering Materials except for applicable federal and state securities laws.
      The
      Company, since its inception, has not incurred any liability arising under
      or as
      a result of the application of any of the provisions of the 1933 Act, the 1934
      Act or the Rules and Regulations.

     

    (vii)  There
      has
      been no material adverse change in the condition or prospects of the Company,
      financial or otherwise, from the latest dates as of which such condition or
      prospects, respectively, are set forth in the Offering Materials, and the
      outstanding debt, the property and the business of the Company conform in all
      material respects to the descriptions thereof contained in the Offering
      Materials.

     

    (viii)  Except
      as
      set forth in the Offering Materials,
      the
      Company is not in breach of, or in default under, any term or provision of
      any
      material indenture, mortgage, deed of trust, lease, note, loan or Standby Equity
      Distribution Agreement or any other material agreement or instrument evidencing
      an obligation for borrowed money, or any other material agreement or instrument
      to which it is a party or by which it or any of its properties may be bound
      or
      affected. The Company is not in violation of any provision of its charter or
      by-laws or in violation of any franchise, license, permit, judgment, decree
      or
      order, or in violation of any material statute, rule or regulation. Neither
      the
      execution and delivery of the Offering Materials nor the issuance and sale
      or
      delivery of the Securities, nor the consummation of any of the transactions
      contemplated in the Offering Materials nor the compliance by the Company with
      the terms and provisions hereof or thereof, has conflicted with or will conflict
      with, or has resulted in or will result in a breach of, any of the terms and
      provisions of, or has constituted or will constitute a default under, or has
      resulted in or will result in the creation or imposition of any lien, charge
      or
      encumbrance upon any property or assets of the Company or pursuant to the terms
      of any indenture, mortgage, deed of trust, note, loan or any other agreement
      or
      instrument evidencing an obligation for borrowed money, or any other agreement
      or instrument to which the Company may be bound or to which any of the property
      or assets of the Company is subject except (a) where such default, lien, charge
      or encumbrance would not have a material adverse effect on the Company and
      (b)
      as described in the Offering Materials; nor will such action result in any
      violation of the provisions of the charter or the by-laws of the Company or,
      assuming the due performance by the Placement Agent of its obligations
      hereunder, any material statute or any material order, rule or regulation
      applicable to the Company of any court or of any foreign, federal, state or
      other regulatory authority or other government body having jurisdiction over
      the
      Company.

     

    
      
        
        

      

      
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    (iv)  Subsequent
      to the dates as of which information is given in the Offering Materials, and
      except as may otherwise be indicated or contemplated herein or therein and
      the
      securities offered pursuant to the Standby Equity Distribution Agreement, the
      Company has not (a) issued any securities or incurred any liability or
      obligation, direct or contingent, for borrowed money, or (b) entered into any
      transaction other than in the ordinary course of business, or (c) declared
      or
      paid any dividend or made any other distribution on or in respect of its capital
      stock. Except as described in the Offering Materials, the Company has no
      outstanding obligations to any officer or director of the Company.

     

    (x)  The
      Company owns or possesses, free and clear of all liens or encumbrances and
      rights thereto or therein by third parties, the requisite licenses or other
      rights to use all trademarks, service marks, copyrights, service names, trade
      names, patents, patent applications and licenses necessary to conduct its
      business (including, without limitation, any such licenses or rights described
      in the Offering Materials as being owned or possessed by the Company) and,
      except as set forth in the Offering Materials, there is no claim or action
      by
      any person pertaining to, or proceeding, pending or threatened, which challenges
      the exclusive rights of the Company with respect to any trademarks, service
      marks, copyrights, service names, trade names, patents, patent applications
      and
      licenses used in the conduct of the Company’s businesses (including, without
      limitation, any such licenses or rights described in the Offering Materials
      as
      being owned or possessed by the Company) except any claim or action that would
      not have a material adverse effect on the Company; the Company’s current
      products, services or processes do not infringe or will not infringe on the
      patents currently held by any third party.

     

    (xi)  Except
      as
      described in the Offering Materials and the fees to World Trade Center
      Association, the Company is not under any obligation to pay royalties or fees
      of
      any kind whatsoever to any third party with respect to any trademarks, service
      marks, copyrights, service names, trade names, patents, patent applications,
      licenses or technology it has developed, uses, employs or intends to use or
      employ, other than to their respective licensors.

     

    (xii)  Subject
      to the performance by the Placement Agent of its obligations
      hereunder
      the
      offer and sale of the Securities complies,
      and
      will continue to comply,
      in all
      material respects with the requirements of Rule 506 of Regulation D promulgated
      by the SEC pursuant to the 1933 Act and any other applicable federal and state
      laws, rules, regulations and executive orders. Neither the Offering Materials
      nor any amendment or supplement thereto nor any documents prepared by the
      Company in connection with the Offering will contain any untrue statement of
      a
      material fact or omit to state any material fact required to be stated therein
      or necessary to make the statements therein, in light of the circumstances
      under
      which they were made, not misleading. All statements of material facts in the
      Offering Materials are true and correct as of the date of the Offering
      Materials.

     

    (xiii)  All
      material
      taxes which are due and payable from the Company have been paid in full or
      adequate provision has been made for such taxes on the books of the
      Company,
      except
      for those taxes disputed in good faith by
      the
      Company 

     

    
      
        
        

      

      
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    (xiv)  None
      of
      the Company nor any of its officers, directors, employees or agents, nor any
      other person acting on behalf of the Company, has, directly or indirectly,
      given
      or agreed to give any money, gift or similar benefit (other than legal price
      concessions to customers in the ordinary course of business) to any customer,
      supplier, employee or agent of a customer or supplier, or official or employee
      of any governmental agency or instrumentality of any government (domestic or
      foreign) or any political party or candidate for office (domestic or foreign)
      or
      other person who is or may be in a position to help or hinder the business
      of
      the Company (or assist it in connection with any actual or proposed transaction)
      which (A) might subject the Company to any damage or penalty in any civil,
      criminal or governmental litigation or proceeding, or (B) if not given in the
      past, might have had a materially adverse effect on the assets, business or
      operations of the Company as reflected in any of the financial statements
      contained in the Offering Materials, or (C) if not continued in the future,
      might adversely affect the assets, business, operations or prospects of the
      Company in the future.

     

    5.
Certain
      Covenants and Agreements of the
      Company.

     

    The
      Company covenants and agrees at its expense and without any expense to the
      Placement Agent as follows:

     

    A.
To
      advise the Placement Agent
      and the
      Investor
      of any
      material adverse change in the Company’s financial condition, prospects or
      business or of any development materially affecting the Company or rendering
      untrue or misleading any material statement in the Offering Materials occurring
      at any time as soon as the Company is either informed or becomes aware
      thereof.

     

    B.
To
      use its commercially reasonable efforts to cause the Common
      Stock issuable in connection with the Standby Equity Distribution Agreement
      to
      be qualified or registered for sale on terms consistent with those stated in
      the
      Registration Rights Agreement and under the securities laws of such
      jurisdictions as the Placement Agent and the Investor shall reasonably request.
      Qualification, registration and exemption charges and fees shall be at the
      sole
      cost and expense of the Company.

     

    C.
Upon
      written request, to provide and continue to provide the
      Placement Agent and the Investor copies of all quarterly financial statements
      and audited annual financial statements prepared by or on behalf of the Company,
      other reports prepared by or on behalf of the Company for public disclosure
      and
      all documents delivered to the Company’s stockholders.

     

    D.
To
      deliver, during the registration period of the Standby
      Equity Distribution Agreement, to the Investor
      upon the
Investor’s
      request, within fifty (50) days, a statement of its income for each such
      quarterly period, and its balance sheet and a statement of changes in
      stockholders’ equity as of the end of such quarterly period, all in reasonable
      detail, certified by its principal financial or accounting officer; (ii) within
      one hundred five (105) days after the close of each fiscal year, its balance
      sheet as of the close of such fiscal year, together with a statement of income,
      a statement of changes in stockholders’ equity and a statement of cash flow for
      such fiscal year, such balance sheet, statement of income, statement of changes
      in stockholders’ equity and statement of cash flow to be in reasonable detail
      and accompanied by a copy of the certificate or report thereon of independent
      auditors if audited financial statements are prepared; and (iii) a copy of
      all
      documents, reports and information furnished to its stockholders at the time
      that such documents, reports and information are furnished to its
      stockholders,
      if such
      information is unavailable on the official website of the SEC.

     

    
      
        
        

      

      
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    E.
To
      comply with the terms of the Offering
      Materials.

     

    F.
To
      ensure that any transactions between or among the Company,
      or any of its officers, directors and affiliates be on terms and conditions
      that
      are no less favorable to the Company, than the terms and conditions that would
      be available in an “arm’s length” transaction with an independent third
      party.

     

    6.
Indemnification
      and
      Limitation of Liability.

     

              
      A. The
      Company hereby agrees that it will indemnify and hold the Placement Agent and
      each officer, director, shareholder, employee or representative of the Placement
      Agent and each person controlling, controlled by or under common control with
      the Placement Agent within the meaning of Section 15 of the 1933 Act or Section
      20 of the 1934 Act or the SEC’s Rules and Regulations promulgated thereunder
      (the “Rules
      and Regulations”),
      harmless from and against any and all loss, claim, damage, liability, cost
      or
      expense whatsoever (including, but not limited to, any and all reasonable legal
      fees and other expenses and disbursements incurred in connection with
      investigating, preparing to defend or defending any action, suit or proceeding,
      including any inquiry or investigation, commenced or threatened, or any claim
      whatsoever or in appearing or preparing for appearance as a witness in any
      action, suit or proceeding, including any inquiry, investigation or pretrial
      proceeding such as a deposition) to which the Placement Agent or such
      indemnified person of the Placement Agent may become subject under the 1933
      Act,
      the 1934 Act, the Rules and Regulations, or any other federal or state law
      or
      regulation, common law or otherwise, arising out of or based upon (i) any untrue
      statement or alleged untrue statement of a material fact contained in (a)
      Section 4 of this Agreement, (b) the Offering Materials (except those written
      statements relating to the Placement Agent given by the
      Placement Agent
      for
      inclusion therein), (c) any application or other document or written
      communication executed by the Company or based upon written information
      furnished by the Company filed in any jurisdiction in order to qualify the
      Common Stock under the securities laws thereof, or any state securities
      commission or agency; (ii) the omission or alleged omission from documents
      described in clauses (a), (b) or (c) above of a material fact required to be
      stated therein or necessary to make the statements therein not misleading;
      or
      (iii) the breach of any representation, warranty, covenant or agreement made
      by
      the Company in this Agreement. The Company further agrees that upon demand
      by an
      indemnified person, at any time or from time to time, it will promptly reimburse
      such indemnified person for any loss, claim, damage, liability, cost or expense
      actually and reasonably paid by the indemnified person as to which the Company
      has indemnified such person pursuant hereto. Notwithstanding the foregoing
      provisions of this Paragraph 7(A), any such payment or reimbursement by the
      Company of fees, expenses or disbursements incurred by an indemnified person
      in
      any proceeding in which a final judgment by a court of competent jurisdiction
      (after all appeals or the expiration of time to appeal) is entered against
      the
      Placement Agent or such indemnified person based upon specific finding of fact
      that the Placement Agent or such indemnified person’s gross negligence or
      willful misfeasance will be promptly repaid to the Company.

     

    
      
        
        

      

      
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    B.
The
      Placement Agent hereby agrees that it will indemnify and
      hold the Company and each officer, director, shareholder, employee or
      representative of the Company, and each person controlling, controlled by or
      under common control with the Company within the meaning of Section 15 of the
      1933 Act or Section 20 of the 1934 Act or the Rules and Regulations, harmless
      from and against any and all loss, claim, damage, liability, cost or expense
      whatsoever (including, but not limited to, any and all reasonable legal fees
      and
      other expenses and disbursements incurred in connection with investigating,
      preparing to defend or defending any action, suit or proceeding, including
      any
      inquiry or investigation, commenced or threatened, or any claim whatsoever
      or in
      appearing or preparing for appearance as a witness in any action, suit or
      proceeding, including any inquiry, investigation or pretrial proceeding such
      as
      a deposition) to which the Company or such indemnified person of the Company
      may
      become subject under the 1933 Act, the 1934 Act, the Rules and Regulations,
      or
      any other federal or state law or regulation, common law or otherwise, arising
      out of or based upon (i) the material
      breach of any representation, warranty, covenant or agreement made by the
      Placement Agent in this Agreement, or (ii)
      any
      false or misleading information provided to the Company in
      writing by
      one of
      the Placement Agent’s indemnified persons
      specifically for inclusion in the Offering Materials.

     

    C.
Promptly
      after receipt by an indemnified party of notice of
      commencement of any action covered by Section 7(A), (B), (C) or (D), the party
      to be indemnified shall, within five (5) business days, notify the indemnifying
      party of the commencement thereof; the omission by one (1) indemnified
      party to so notify the indemnifying party shall not relieve the indemnifying
      party of its obligation to indemnify any other indemnified party that has given
      such notice and shall not relieve the indemnifying party of any liability
      outside of this indemnification if not materially prejudiced thereby. In the
      event that any action is brought against the indemnified party, the indemnifying
      party will be entitled to participate therein and, to the extent it may desire,
      to assume and control the defense thereof with counsel chosen by it which is
      reasonably acceptable to the indemnified party. After notice from the
      indemnifying party to such indemnified party of its election to so assume the
      defense thereof, the indemnifying party will not be liable to such indemnified
      party under such Section 7(A), (B), (C), or (D) for any legal or other expenses
      subsequently incurred by such indemnified party in connection with the defense
      thereof, but the indemnified party may, at its own expense, participate in
      such
      defense by counsel chosen by it, without, however, impairing the indemnifying
      party’s control of the defense. Subject to the proviso of this sentence and
      notwithstanding any other statement to the contrary contained herein, the
      indemnified party or parties shall have the right to choose its or their own
      counsel and control the defense of any action, all at the expense of the
      indemnifying party if (i) the employment of such counsel shall have
      been
      authorized in writing by the indemnifying party in connection with the defense
      of such action at the expense of the indemnifying party, or (ii) the
      indemnifying party shall not have employed counsel reasonably satisfactory
      to
      such indemnified party to have charge of the defense of such action within
      a
      reasonable time after notice of commencement of the action, or (iii) such
      indemnified party or parties shall have reasonably concluded that there may
      be
      defenses available to it or them which are different from or additional to
      those
      available to one or all of the indemnifying parties (in which case the
      indemnifying parties shall not have the right to direct the defense of such
      action on behalf of the indemnified party or parties), in any of which events
      such fees and expenses of one additional counsel shall be borne by the
      indemnifying party; provided, however, that the indemnifying party shall not,
      in
      connection with any one action or separate but substantially similar or related
      actions in the same jurisdiction arising out of the same general allegations
      or
      circumstance, be liable for the reasonable fees and expenses of more than one
      separate firm of attorneys at any time for all such indemnified parties. No
      settlement of any action or proceeding against an indemnified party shall be
      made without the consent of the indemnifying party.

     

    
      
        
        

      

      
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    D.
In
      order to provide for just and equitable contribution in
      circumstances in which the indemnification provided for in Section 7(A) or
      7(B)
      is due in accordance with its terms but is for any reason held by a court to
      be
      unavailable on grounds of policy or otherwise, the Company and the Placement
      Agent shall contribute to the aggregate losses, claims, damages and liabilities
      (including legal or other expenses reasonably incurred in connection with the
      investigation or defense of same) which the other may incur in such proportion
      so that the Placement Agent shall be responsible for such percent of the
      aggregate of such losses, claims, damages and liabilities as shall equal the
      percentage of the gross proceeds paid to the Placement Agent and the Company
      shall be responsible for the balance; provided, however, that no person guilty
      of fraudulent misrepresentation within the meaning of Section 11(f) of the
      1933
      Act shall be entitled to contribution from any person who was not guilty of
      such
      fraudulent misrepresentation. For purposes of this Section 7(F), any person
      controlling, controlled by or under common control with the Placement Agent,
      or
      any partner, director, officer, employee, representative or any agent of any
      thereof, shall have the same rights to contribution as the Placement Agent
      and
      each person controlling, controlled by or under common control with the Company
      within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
      Act
      and each officer of the Company and each director of the Company shall have
      the
      same rights to contribution as the Company. Any party entitled to contribution
      will, promptly after receipt of notice of commencement of any action, suit
      or
      proceeding against such party in respect of which a claim for contribution
      may
      be made against the other party under this Section 7(D), notify such party
      from
      whom contribution may be sought, but the omission to so notify such party shall
      not relieve the party from whom contribution may be sought from any obligation
      they may have hereunder or otherwise if the party from whom contribution may
      be
      sought is not materially prejudiced thereby. 

     

    E.
The
      indemnity and contribution agreements contained in this
      Section 7 shall remain operative and in full force and effect regardless of
      any
      investigation made by or on behalf of any indemnified person or any termination
      of this Agreement.

     

    F.
The
      Company hereby waives, to the fullest extent permitted by
      law, any right to or claim of any punitive, exemplary, incidental, indirect,
      special, consequential or other damages (including, without limitation, loss
      of
      profits) against the Placement Agent and each officer, director, shareholder,
      employee or representative of the placement agent and each person controlling,
      controlled by or under common control with the Placement Agent within the
      meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act or the
      Rules
      and Regulations arising out of any cause whatsoever (whether such cause be
      based
      in contract, negligence, strict liability, other tort or otherwise).
      Notwithstanding anything to the contrary contained herein, the aggregate
      liability of the Placement Agent and each officer, director, shareholder,
      employee or representative of the Placement Agent and each person controlling,
      controlled by or under common control with the Placement Agent within the
      meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act or the
      Rules
      and Regulations shall not exceed the compensation received by the Placement
      Agent pursuant to Section 2 hereof. This limitation of liability shall apply
      regardless of the cause of action, whether contract, tort (including, without
      limitation, negligence) or breach of statute or any other legal or equitable
      obligation.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    7.
Payment
      of Expenses.

     

    The
      Company hereby agrees to bear all of the expenses in connection with the
      Offering, including, but not limited to the following: filing fees, printing
      and
      duplicating costs, advertisements, postage and mailing expenses with respect
      to
      the transmission of Offering Materials, registrar and transfer agent fees,
      escrow agent fees and expenses, fees of the Company’s counsel and accountants,
      issue and transfer taxes, if any.

     

    8.
Conditions
      of Closing.

     

    The
      Closing shall be held at the offices of the Investor or its counsel. The
      obligations of the Placement Agent hereunder shall be subject to the continuing
      accuracy of the representations and warranties of the Company and
      the
      Investor herein
      as
      of the date hereof and as of the Date of Closing (the “Closing
      Date”)
      with
      respect to the Company or
      the
      Investor, as the case may be, as
      if it
      had been made on and as of such Closing Date; the accuracy on and as of the
      Closing Date of the statements of the officers of the Company made pursuant
      to
      the provisions hereof; and the performance by the Company and
      the
      Investor on
      and as
      of the Closing Date of its covenants and obligations hereunder and to the
      following further conditions:

     

    A.
Upon
      the effectiveness of a registration statement covering the
      Standby Equity Distribution Agreement, the Investor
      and the Placement
      Agent shall receive the opinion of Counsel to the Company, dated as of the
      date
      thereof, which opinion shall be in form and substance reasonably satisfactory
      to
      the Investor, their counsel and the Placement Agent.

     

    B.
At
      or prior to the Closing,
      the
      Investor and
      the
      Placement Agent shall have been furnished such documents, certificates and
      opinions as it may reasonably require for the purpose of enabling them to review
      or pass upon the matters referred to in this Agreement and the Offering
      Materials, or in order to evidence the accuracy, completeness or satisfaction
      of
      any of the representations, warranties or conditions herein
      contained.

     

    C.
At
      and prior to the Closing, (i) there shall have been no
      material adverse change nor development involving a prospective change in the
      condition or prospects or the business activities, financial or otherwise,
      of
      the Company from the latest dates as of which such condition is set forth in
      the
      Offering Materials; (ii) there shall have been no transaction, not in the
      ordinary course of business except the transactions pursuant to the Securities
      Purchase Agreement entered into by the Company on the date hereof which has
      not
      been disclosed in the Offering Materials or to the Placement Agent in writing;
      (iii) except as set forth in the Offering Materials, the Company shall not
      be in
      default under any provision of any instrument relating to any outstanding
      indebtedness for which a waiver or extension has not been otherwise received;
      (iv) except as set forth in the Offering Materials, the Company shall not have
      issued any securities (other than those to be issued as provided in the Offering
      Materials) or declared or paid any dividend or made any distribution of its
      capital stock of any class and there shall not have been any change in the
      indebtedness (long or short term) or liabilities or obligations of the Company
      (contingent or otherwise) and trade payable debt; (v) no material amount of
      the
      assets of the Company shall have been pledged or mortgaged, except as indicated
      in the Offering Materials; and (v) no action, suit or proceeding, at law or
      in
      equity, against the Company or affecting any of its properties or businesses
      shall be pending or threatened before or by any court or federal or state
      commission, board or other administrative agency, domestic or foreign, wherein
      an unfavorable decision, ruling or finding could materially adversely affect
      the
      businesses, prospects or financial condition or income of the Company, except
      as
      set forth in the Offering Materials.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    D.
If
      requested at
      Closing
      the
      Investor and
      the
      Placement Agent shall receive a certificate of the Company signed by an
      executive officer and chief financial officer, dated as of the applicable
      Closing, to the effect that the conditions set forth in subparagraph (C) above
      have been satisfied and that, as of the applicable closing, the representations
      and warranties of the Company set forth herein are true and
      correct.

     

    E.
The
      Placement Agent shall have no obligation to insure that (x)
      any check, note, draft or other means of payment for the Common Stock will
      be
      honored, paid or enforceable against the Investor in accordance with its terms,
      or (y) subject to the performance of the Placement Agent’s obligations and the
      accuracy of the Placement Agent’s representations and warranties hereunder, (1)
      the Offering is exempt from the registration requirements of the 1933 Act or
      any
      applicable state “Blue Sky” law or (2) the Investor is an Accredited
      Investor.

     

    9.
Termination.

     

    This
      Agreement shall be co-terminus with, and terminate upon the same terms and
      conditions as those set forth in, the Standby Equity Distribution Agreement.
      The
      rights of the Investor and the obligations of the Company under the Registration
      Rights Agreement, and the rights of the Placement Agent and the obligations
      of
      the Company shall survive the termination of this Agreement
      unabridged.

     

    10.
Miscellaneous.

    

    A.
This
      Agreement may be executed in any number of counterparts,
      each of which shall be deemed to be an original, but all which shall be deemed
      to be one and the same instrument.

    

    B.
Any
      notice required or permitted to be given hereunder shall be
      given in writing and shall be deemed effective when deposited in the United
      States mail, postage prepaid, or when received if personally delivered or faxed
      (upon confirmation of receipt received by the sending party), addressed as
      follows
      to such
      other address of which written notice is given to the others):

     

    
      	
              If
                to Placement Agent, to:

            	
              Cambria
                Capital, LLC 

            
	
               

            	
              2321
                Rosecrans Avenue

            
	
               

            	
              El
                Segundo, CA 94205 

            
	
               

            	
              Attention:
                David Fuchs, Senior Managing Director 

            
	
               

            	
              Telephone: (212)
                837-7883

            
	
               

            	
              Facsimile: (212)
                837-7832

            
	
               

            	
               

            
	
              If
                to the Company, to:

            	
              China
                World Trade Corporation

            
	
               

            	
              Room
                1217, 12th
                Floor, The Metropolis Tower

            
	
               

            	
              10
                Metropolis Drive

            
	
               

            	
              Hunghom,
                Hong Kong China

            
	
               

            	
              Attention:
                Bernard Chan, Chief Financial Officer

            
	
               

            	
              Telephone:
                (852) 2330-6622

            
	
               

            	
              Facsimile:
                (852) 2333-8844

            
	
               

            	
               

            
	
              With
                a copy to:

            	
              Harold
                H. Martin, P.A.

            
	
               

            	
              17111
                Kenton Drive - Suite 100B

            
	
               

            	
              Cornelius,
                NC 28031

            
	
               

            	
              Telephone:
                (704) 894-9760

            
	
               

            	
              Facsimile:
                (704) 894-9759

            
	
               

            	
               

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

              
      C. This
      Agreement shall be governed by and construed in all respects under the
laws
      of
      the State of Nevada , without reference to its conflict of laws rules or
      principles. Any suit, action, proceeding or litigation arising out of or
      relating to this Agreement shall be brought and prosecuted in such federal
      or
      state court or courts located within the State of New York as provided by law.
      The parties hereby irrevocably and unconditionally consent to the jurisdiction
      of each such court or courts located within the State of New York and to service
      of process by registered or certified mail, return receipt requested, or by
      any
      other manner provided by applicable law, and hereby irrevocably and
      unconditionally waive any right to claim that any suit, action, proceeding
      or
      litigation so commenced has been commenced in an inconvenient
      forum.

     

               
      D.
      This Agreement and the other agreements referenced herein contain the
entire
      understanding between the parties hereto and may not be modified or amended
      except by a writing duly signed by the party against whom enforcement of the
      modification or amendment is sought.

     

               
      E.
      If any provision of this Agreement shall be held to be invalid or unenforceable,
      such invalidity or unenforceability shall not affect any other provision of
      this
      Agreement.

     

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement as of the date first written
      above.

     

    

     

    
      	
               

            	
              COMPANY:

            
	
               

            	
              CHINA
                WORLD TRADE CORPORATION

            
	
               

            	
               

            
	
               

            	
              By:
                /s/ John H. Hui

            
	
               

            	
              Name: John
                H. Hui

            
	
               

            	
              Title: CEO
                & Vice Chairman

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              PLACEMENT
                AGENT:

            
	
               

            	
              CAMBRIA
                CAPITAL, LLC 

            
	
               

            	
               

            
	
               

            	
              By:
                /s/ Eric W. Richardson

            
	
               

            	
              Name: Eric
                W. Richardson

            
	
               

            	
              Title: President

            
	
               

            	
               

            
	
               

            	
               

            

    

     

    
 

    
      
        
        

      

      
        13Exhibit 10.17

    Exhibit
      10.17

    
 

    

    

    CHINA
      WORLD TRADE CORPORATION

    Room
      1217, 12th
      Floor,
      The Metropolis Tower

    10
      Metropolis Drive

    Hunghom,
      Hong Kong

    Peoples’
      Republic of China

    

    

    As
      of
      June 30, 2005

    

    BY
      FACSIMILE

    

    Duncan
      Capital, LLC 

    830
      Third
      Avenue 

    New
      York,
      NY 10022 

     

    Attn:
      David Fuchs, Managing Member

     

    Re:
      Termination of Placement Agent Agreement, dated November 15, 2004 (the
“Placement

    Agent
      Agreement”), among China World Trade Corporation (the "Company"),
      Cornell

    Capital
      Partners, LP (“Cornell Capital”) and Duncan Capital, LLC (“Duncan
      Capital”).

     

    Ladies
      and Gentlemen:

     

    We
      hereby
      inform you that the Company and Cornell Capital, with your agreement and
      consent, hereby terminate the Placement Agent Agreement between the Company,
      Cornell Capital and Duncan Capital, effective immediately. You hereby consent
      to
      a successor arrangement by which the Company will enter into a new Placement
      Agent Agreement with Cambria Capital, LLC.

     

    Please
      be
      advised that the Company hereby consents, as compensation for the services
      which
      you provided under the Placement Agent Agreement to date, that Duncan Capital
      shall retain the 150,000 shares of common stock of the Company that were issued
      to you pursuant to the terms of the Placement Agent Agreement. However, you
      also
      agree that Duncan Capital shall not be entitled to any further compensation
      pursuant to the Placement Agent Agreement.

     

    Please
      indicate your agreement and consent to such termination by signing in the space
      provided below, and returning a copy of this letter to us by facsimile at (704)
      894-9759.

     

    If
      you
      have any questions or comments regarding the foregoing, please do not hesitate
      to contact us.

     

    Very
      truly yours,

     

    

    Duncan
      Capital, LLC

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    As
      of
      June 30, 2005

    Page
      2.

     

    

    CHINA
      WORLD TRADE CORPORATION

    

    By:
      /s/ John H. Hui

    Name:
      John H. Hui

    Title:
      CEO and Vice Chairman 

     

    CORNELL
      CAPITAL PARTNERS, LP

     

    By:
      /s/ Mark Angelo

    Name:
      Mark Angelo

    Title:
      Portfolio Manager 

    

    

    Agreed
      To
      By Duncan Capital As Of

    The
      Date
      First Written Above:

    

    DUNCAN
      CAPITAL, LLC

    

    By:
      /s/ David Fuchs

    Name:
      David Fuchs

    Title:
      Managing Member

     

    

    

    

    cc:
      Harold H. Martin, Esq.

     

     

    
      
        
        

      

      
        2

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