Document:

Form 3200-245

	
 Form 3200-24a

 May 2007

	
United States

Bureau of Land Management

Department of the Interior
	
Bureau of Land ManagementI

	
OFFER TO LEASE AND LEASE FOR GEOTHERMAL RESOURCES
	
Serial No. NVN083965

	
The undersigned (see page 2) offers to lease all or any of the lands in item 2 that are available for lease pursuant to the Geothermal Steam Act of 1970, as amended (30 U.S.C. 1001-1025).

	
Read Instructions Before Completing

WiAl

	
1.NameRASER POWER SYSTEMS LLC

Street5152 EDGEWOOD DR STE 375

City, State, Zip CodePROVO, UT 84604
	
Future Rental payments must be made

on or before the anniversary date to

Minerals Management Service

Royalty Management Program
P.O. Box 5640,  Denver CO 80217

	
2.  Surface managing agency if other than BLM:  ___________________________________  Unit/Project:  _______________________________________________

	
Legal description of land requested (segregate by public domain and acquired lands):

	
T.RMeridianStateCounty

	
Total Acres Applied for_________________

	
Percent U.S. interest ___________________

	
Amount remitted:  Processing Fee  $__________________________Rental Fee  $__________________________  Total $__________________________

	
DO NOT WRITE BELOW THIS LINE

	 
	
3.  Land included in lease:

	 
	
T.  0150NR.       0440EMeridian      MDM  State     NVCounty     Nye

	 
	
Sec.    019  LOTS 1-4;Sec.     028 ALL;

	
           019  E2E2, SWNE, E2W2, W2SE;            029  E2, SESW;

	
           020  N2, SE;            030  LOTS 1-4;

	
           021  ALL;            030  NE, E2W2, NESE, W2SE;

	
           022  NE, NENW, N2SW, SESW, SWSE; 

	
           027  ALL;

	 
	
Total acres in lease  4273.760

	 
	
Rental Retained $8548.00

	
In accordance with the above offer, or the previously submitted competitive bid, this lease is issued granting the exclusive right to drill for, extract, produce, remove, utilize, sell, and dispose of all the geothermal resources in the lands described in item 3 together with the right to build and maintain necessary improvements thereupon, for a primary term of 10 years and subsequent extensions thereof in accordance with 43 CFR subpart 3207.  Rights granted are subject to applicable laws; the terms, conditions, and attached stipulations of this lease; the Secretary of the Interior's regulations and formal orders in effect as of lease issuance; and when not inconsistent with the provisions of this lease, regulations and formal orders hereafter promulgated.  

	
Type of Lease:
	
THE UNITED STATES OF AMERICA

	
[x]     Competitive[]     Noncompetitive
	 
	
BY
	 
	
[]     Noncompetitive direct use (43 CFR subpart 3205)
	
(Signing Official)

	 	
CHIEF, BRANCH OF MINERALS ADJUDICATION AUG 29 2007

	
Comments
	(Title)(Date)

	 	 	 	
Check if this is a converted lease     []

	 	
EFFECTIVE DATE OF LEASE CONVERSION

	 

(Continued an page 2)
4. (a) The undersigned certifies that:
(1) The offeror is a citizen of the United States; an association of such citizens; a municipality; or a corporation organized under the laws of the United States, any State or the District of Columbia; (2) All parties holding an interest in the offer are in compliance with 43 CFR part 3200 and the authorizing Act; (3) The offeror's chargeable interests, direct and indirect, do not exceed those allowed under the Act; and (4) The offerer is not considered a minor under the laws of the State in which the lands covered by this offer are located.

(b) The undersigned agrees that signing this offer constitutes acceptance of this lease, including all terms, conditions and stipulations of which the offeror has been given notice, and any amendment or separate lease that may cover any land described in this offer open to lease application at the time this offer was filed but omitted for any reason from this lease.  The offeror further agrees that this offer cannot be withdrawn, either in whole or part, unless the withdrawal is received by the proper BLM State Office before this lease, an amendment to this lease, or a separate lease, whichever covers the land described in the withdrawal, has been signed on behalf of the United States.

This offer will be rejected and will afford the offeror no priority if it is not properly completed and executed in accordance with the regulations or if it is not accompanied by the required payments.  Title 18 U.S.C. Sec. 1001 makes it a crime for any person knowingly and willfully to make to any Department or agency of the United States any false, fictitious, or fraudulent statements or representations as to any matter within its jurisdiction.
Duly executed thisday of, 20 ______
(Signature of Lessee or Attorney-in-fact)

LEASE TERMS

Sec.1.   Rentals-Rentals must be paid to the proper office of the lessor in advance of each lease year.  Annual rental rates per acre or fraction thereof, as applicable, are:  (a) Noncompetitive lease (includes post-sale parcels not receiving bids, a direct use lease or a lease issued to a mining claimant):  $1.00 for the first 10 years; thereafter $5.00; or (b) Competitive lease:  $2.00 for the first year, $3.00 for the second through tenth year; thereafter $5.00.  Annual rental is always due by the anniversary date of this lease (43 CFR 3211.13), regardless of whether the lease is in a unit or outside of a unit, the lease is in production or not, or royalties or direct use fees apply to the production.  Rental may only be credited toward royalty under 43 CFR 3211.15 and 30 CFR 218.303.  Rental may not be credited against direct use fees.  Failure to pay annual rental timely will result in late fees and will make the lease subject to termination in accordance with 43 CFR 3213.14.

Sec.2.  (a) Royalties-Royalties must be paid to the proper office of the lessor.   Royalties are due on the last day of the month following the month of production.  Royalties will be computed in accordance with applicable regulations and orders.  Royalty rates for geothermal resources produced for the commercial generation of electricity but not sold in an arm's length transaction are: 1.75 percent for the first 10 years of production and 3.5 percent after the first 10 years.  The royalty rate is to be applied to the gross proceeds derived from the sale of electricity in accordance with 30 CFR part 206 subpart H. The royalty rate for byproducts derived from geothermal resource production that are minerals specified in section 1 of the Mineral Leasing Act (MLA), as amended (30 U.S.C. 181), is 5 percent, except for sodium compounds, for which the royalty rate is 2 percent for sodium produced between September 29, 2006 and September 29, 2011 (Pub. L. No. 109-338, SEC 102; note to 30 U.S.C. 262).  No royalty is due on byproducts that are not specified in 30 U.S.C. SEC 181.  (43 CFR 3211.19.) If this lease or a portion thereof is committed to an approved communitization or unit agreement and the agreement contains a provision for allocation of production, royalties must be paid on the production allocated to this lease.  (b) Arm's length transactions-The royalty rate for geothermal resources sold by you or your affiliate at arm's length to a purchaser is 10 percent of the gross proceeds derived from the arm's-length sale (43 CFR 3211.17, 3231.18).  (c) Advanced royalties-In the absence of a suspension, if you cease-production for more than one calendar month on a lease that is subject to royalties and that has achieved commercial production, your lease will remain in effect only if you make advanced royalty payments in accordance with 43 CFR 3212.15(a) and 30 CFR 218.305. (d) Direct use fees-Direct use fees must be paid in lieu of royalties for geothermal resources that are utilized for commercial, residential, agricultural, or other energy needs other than the commercial production or generation of electricity, but not sold in an arm's length transaction (43 CFR 3211.18; 30 CFR 206.356). This requirement applies to any direct use of federal geothermal resources (unless the resource is exempted as described in 30 CFR 202.351(b) or the lessee is covered by paragraph (e), below) and is not limited to direct use leases.  Direct use fees are due on the last day of the month following the month of production.  (e) If the lessee is a State, tribal, or local government covered by 43 CFR 3211.18(a)(3) and 30 CFR 206.366, check here.  G A lessee under this paragraph is not subject to paragraph (d), above.  In lieu of royalties, the lessee under this paragraph must pay a nominal fee of $______.  

Sec.3.  Bonds.  A bond must be filed and maintained for lease operations as required by applicable regulations.

Sec.4.  Work requirements, rate of development, unitization, and drainage-Lessee must perform work requirements in accordance with applicable regulations (43 CFR 3207.11, 3207.12), and must prevent unnecessary damage to, loss of, or waste of leased resources.  Lessor reserves the right to specify rates of development and production and to require lessee to commit to a communitization or unit agreement, within 30 days of notice, if in the public interest.  Lessee must drill and produce wells necessary to protect leased lands from drainage or pay compensatory royalty for drainage in the amount determined by lessor.  Lessor will exempt lessee from work requirements only where the lease overlies a mining claim that has an approved plan of operations and where BLM determines that the development of the geothermal resource on the lease would interfere with the mining operation (43 CFR 3207.13).

Sec.5.  Documents, evidence, and inspection-Lessee must file with the proper office of the lessor, not later than (30) days after the effective date thereof, any contract or evidence of other arrangement for the sale, use, or disposal of geothermal resources, byproducts produced, or for the sale of electricity generated using geothermal resources produced from the lease.  At such times and in such form as lessor may prescribe, lessee must furnish detailed statements and all documents showing (a) amounts and quality of all geothermal resources produced and used (either for commercial production or generation of electricity, or in a direct use operation) or sold; (b) proceeds derived therefrom or from the sale of electricity generated using such resources; (c) amounts that are unavoidably lost or reinjected before use, used to generate plant parasitic electricity (as defined in 30 CFR 206.351) or electricity for lease operations, or otherwise used for lease operations related to the commercial production or generation of electricity; and (d) amounts and quality of all byproducts produced and proceeds derived from the sale or disposition thereof.  Lessee may be required to provide plats and schematic diagrams showing development work and improvements, and reports with respect to parties in interest.

In a format and manner approved by lessor, lessee must keep a daily drilling record, a log, and complete information on well surveys and tests; keep a record of subsurface investigations; and furnish copies to lessor when required.  Lessee must keep open at all reasonable times for inspection by any authorized officer of lessor, the leased premises and all wells, improvements, machinery, and fixtures thereon, and all books, accounts, maps, and records relative to operations, surveys, or investigations on or in the leased lands.  Lessee must maintain copies of all contracts, sales agreements, accounting records, billing records, invoices, gross proceeds and payment data regarding the sale, disposition, or use of geothermal resources, byproducts produced, and the sale of electricity generated using resources produced from the lease, and all other information relevant to determining royalties or direct use fees.  All such records must be maintained in lessee's accounting offices for future audit by lessor and produced upon request by lessor or lessor's authorized representative or agent.  Lessee must maintain required records for 6 years after they are generated or, if an audit or investigation is underway, until released of the obligation to maintain such records by lessor.

Sec. 6.  Conduct of operations-Lessee must conduct operations in a manner that minimizes adverse impacts to the land, air, and water, to cultural, biological, visual, and other resources, and to other land uses or users.  Lessee must take reasonable measures deemed necessary by lessor to accomplish the intent of this section.  To the extent consistent with leased rights granted, such measures may include, but are not limited to, modification to siting or design of facilities, timing of operations, and specification of interim and final reclamation measures.  Lessor reserves the right to continue existing uses and to authorize future uses upon or in the leased lands, including the approval of easements or rights-of-way.  Such uses will be conditioned so as to prevent unnecessary or unreasonable interference with rights of lessee.  Prior to disturbing the surface of the leased lands, lessee must contact lessor to be apprised of procedures to be followed and modifications or reclamation measures that may be necessary.  Areas to be disturbed may require inventories or special studies to determine the extent of impacts to other resources.  Lessor may require lessee to complete minor inventories or short term special studies under guidelines provided by lessor.  If, in the conduct of operations, threatened or endangered species, objects of historic or scientific interest, or substantial unanticipated environmental effects are observed, lessee must immediately contact lessor.  Lessee must cease any operations that are likely to affect or take such species, or result in the modification, damage or destruction of such habitats or objects.

Sec. 7.   Production of byproducts-If the production, use, or conversion of geothermal resources from these leased lands is susceptible of producing a valuable byproduct or byproducts, including commercially demineralized water for beneficial uses in accordance with applicable State water laws, lessor may require substantial beneficial production or use thereof by lessee.

Sec.8.  Damages to property-Lessee must pay lessor for damage to lessor's improvements, and must save and hold lessor harmless from all claims for damage or harm to persons or property as a result of lease operations.

Sec.9.  Protection of diverse interests and equal opportunity-Lessee must maintain a safe working environment in accordance with applicable regulations and standard industry practices, and take measures necessary to protect public health and safety.   Lessor reserves the right to ensure that production is sold at reasonable prices and to prevent monopoly.  Lessee must comply with Executive Order No. 11246 of September 24, 1965, as amended, and regulations and relevant orders of the Secretary of Labor issued pursuant thereto.  Neither lessee nor lessee's subcontractor may maintain segregated facilities.

Sec.10.  Transfer of lease interests and relinquishment of lease-As required by regulations, lessee must file with lessor any assignment or other transfer of an interest in this lease.  Subject to the requirements of 43 CFR subpart 3213, lessee may relinquish this lease or any legal subdivision by filing in the proper office a written relinquishment, which will be effective as of the date BLM receives it, subject to the continued obligation of the lessee and surety to be responsible for:  paying all accrued rentals and royalties; plugging and abandoning all wells on the relinquished land; restoring and reclaiming the surface and other resources; and complying with 43 CFR 3200.4.

Sec.11.  Delivery of premises-At such time as all or portions of this lease are returned to lessor, lessee must place all wells in condition for suspension or abandonment, reclaim the land as specified by lessor, and within a reasonable period of time, remove equipment and improvements not deemed necessary by lessor for preservation of producible wells or continued protection of the environment.

Sec.12.  Proceedings in case of default-If lessee fails to comply with any provisions of this lease or other applicable requirements under 43 CFR 3200.4, and the noncompliance continues for 30 days after written notice thereof, this lease will be subject to termination in accordance with the Act and 43 CFR 3213.  This provision will not be construed to prevent the exercise by lessor of any other legal and equitable remedy or action, including waiver of the default.  Any such remedy, waiver, or action will not prevent later termination for the same default occurring at any other time.  Whenever the lessee fails to comply in a timely manner with any of the provisions of the Act, this lease, the regulations, or other applicable requirements under 43 CFR 3200.4, and immediate action is required, the lessor may enter on the leased lands and take measures deemed necessary to correct the failure at the lessee's expense.

Sec.13.  Heirs and successors-in-interest-Each obligation of this lease will extend to and be binding upon, and every benefit hereof will inure to, the heirs, executors, administrators, successors, or assigns of the respective parties hereto.

Instructions

A.General

	Items 1 and 2 need to be completed only by parties filing for a noncompetitive lease.  The BLM will complete the front of the form for other types of leases. The BLM may use the Comments space under Item 3 to identify when:  the lessee has elected to make all lease terms subject to the Energy Policy Act of 2005 under 43 CFR 3200.7(a)(2) or 43 CFR 3200.8(b) (box labeled converted lease must also be checked); the lease is being issued noncompetitively to a party who holds a mining claim on the same lands as is covered by the lease under 43 CFR 3204.12; the lease is a direct use lease issued to a State, local, or tribal government (box at section 2(d) under Lease Terms must also be checked); the lease is a competitive lease with direct-use-only stipulations attached; or other circumstances exist. A lessee who seeks to convert only the royalty rate of a lease under 43 CFR 3212.25 or who qualifies for a case-by case royalty rate determination under 43 CFR 3211.17(b)(1)(i) should not use this form, but should instead use an addendum to the existing lease.
	Entries must be typed or printed plainly in ink.  The offeror must sign the form (item 4) in ink.
	An original and two copies of this offer must be prepared and filed in the proper BLM State Office.  See regulations at 43 CFR 1821.10 for office locations.
	If more space is needed, additional sheets must be attached to each copy of the form submitted.

B.Specific

Item 1-Enter the offeror's name and billing address.

Item 2-Indicate the agency managing the surface use of the land and the name of the unit or project of which the land is a part. The offeror may also provide other information that will assist in establishing status of the lands.  The description of land must conform to 43 CFR 3203.10. Total acres applied for must not exceed that allowed by regulations (43 CFR 3203.10; 43 CFR 3206.12).

Payments:  For noncompetitive leases, the amount remitted must include the processing fee for noncompetitive lease applications (43 CFR 3204.10; 43 CFR 3000.12) and the first year's rental at the rate of $1 per acre or fraction thereof.  If the United States owns only a fractional interest in the geothermal resources, you must pay a prorated rental under 43 CFR 3211.11(d).  The BLM will retain the processing fee even if the offer is completely rejected or withdrawn.  To maintain the offeror's priority, the offeror must submit rental sufficient to cover all the land requested.  If the land requested includes lots or irregular quarter-quarter sections, the exact acreage of which is not known to the offeror, rental should be submitted on the basis of each such lot or quarter-quarter section containing 40 acres.  If the offer is withdrawn or rejected in whole or in part before a lease issues, the BLM will return the rental remitted for the parts withdrawn or rejected.

The BLM will fill in the processing fee for competitive lease applications (43 CFR 3203.17; 43 CFR 3000.12) and the first year's rental at the rate of $2 per acre or fraction thereof.

Item 3-The BLM will complete this space.
PAPERWORK REDUCTION ACT STATEMENT

	This information is being collected pursuant to law and regulations (30 U.S.C. 1000 et seq.; 43 CFR Part 3200).
	This information will be used to create and maintain a record of geothermal lease activity.

3.Response to this request is required to obtain a benefit.

NOTICE

The Privacy Act of 1974 and the regulation at 43 CFR 2.48(d) provide that you be furnished with the following information in connection with information required by this geothermal lease application.

AUTHORITY:  30 U.S.C. 1000 et seq.

PRINCIPAL PURPOSE-The information is to be used to process geothermal lease applications. ROUTINE USES:

(1)The adjudication of the lessee's rights to the land or resources.

	Documentation for public information in support of notations made on land status records for the management, disposal, and use of public lands and resources.
	Transfer to appropriate Federal agencies when concurrence is required prior to granting uses or rights in public lands or resources.

(4)Transfer to the appropriate Federal, State, local, or foreign agencies, when relevant to civil, criminal, or regulatory investigations or prosecutions.

EFFECT OF NOT PROVIDING INFORMATION-If all the information is not provided, the offer may be rejected.  See regulations at 43 CFR Part 3200.

ENDANGERED SPECIES ACT

SECTION 7 CONSULTATION STIPULATION

The lease area may now or hereafter contain plants, animals, or their habitats determined to be threatened, endangered, or other special status species.  BLM may recommend modifications to exploration and development proposals to further its conservation and management objective to avoid BLM-approved activity that will contribute to a need to list such a species or their habitat.  BLM may require modifications to or disapprove proposed activity that is likely to result in jeopardy to the continued existence of a proposed or listed threatened or endangered species or result in the destruction or adverse modifications of a designated or proposed critical habitat.  BLM will not approve any ground-disturbing activity that may affect any such species or critical habitat until it completes its obligations under applicable requirements of the Endangered Species Act, 16 USC Sec. 1531 et seq., as amended, including completion of any required procedure for conference or consultation.

CULTURAL RESOURCE PROTECTION

LEASE STIPULATION

This lease may be found to contain historic properties or resources protected under the National Historic Preservation Act, American Indian Religious Freedom Act, Native American Graves Protection and Repatriation Act, EO 13007, or other statutes and executive orders.  The BLM will not approve any ground-disturbing activities that may affect any such properties or resources until it completes its obligations under applicable requirements of the NHPA and other authorities.  The BLM may require exploration or development proposals to be modified to protect such properties, or it may disapprove any activity that is likely to result in adverse effects that could not be successfully avoided, minimized, or mitigated.

	
Form 3000-2

(January 2007)
	
	
	
FORM APPROVED

OMB NO. 1004-0074

Expires:  December 3 l , 2009

State

	
UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

COMPETITIVE OIL AND GAS OR

GEOTHERMAL RESOURCES LEASE BID

30 U.S.C. 181 et seq.; 30 U.S.C. 351-359;

30 U.S.C.1001-1025; 42 U.S.C. 6508
	

	
	
Date of Sale

	
	

	

	
	
	
	

	
PARCEL NUMBER
	
AMOUNT OF BID (see instructions below)

	
TOTAL BID
	
PAYMENT SUBMITTED

WITH BID

	
THE BID IS FOR (check one):
	
	
	

	
	
	
	
	
	

	
[]Oil and Gas Parcel Number
	
	
	

	
	

	
	
	
	
	
	

	
[x]Geothermal Parcel Number
	
	
	

	
Name of Known Geothermal Resource Area (KGRA)

	
	
	

The appropriate regulations applicable to this bid are: (1) for oil and gas leases--43 CFR 3120; (2) for National Petroleum Reserve-Alaska (NPR-A) leases--43 CFR 3132; and (3) for Geothermal resources leases--43 CFR 3220.  (See details concerning lease qualifications on next page.)

I CERTIFY THAT I have read and am in compliance with; and not in violation of the lessee qualification requirements under the applicable regulations for this bid.

I CERTIFY THAT this bid is not in violation of 18 U.S.C. 1860 which prohibits unlawful combination or intimidation of bidders.  I further certify that this bid was arrived at independently and is tendered without collusion with any other bidder for the purpose of restricting competition.

IMPORTANT NOTICE:  Execution of this form where the offer is the high bid, constitutes a binding lease offer including all applicable terms and conditions.  Failure to comply with the applicable laws and regulations under which this bid is made will result in rejection of the bid and forfeiture of all monies submitted.

Print or Type Name of Lessee

Address of Lessee

Signature of Lessee or Bidder

CityStateZip

 
INSTRUCTIONS FOR OIL AND GAS BID

                       (Except NPR-A)

1.Separate bid for each parcel is required. Identify parcel by the parcel number assigned in the Notice of Competitive Lease Sale.

2.Bid must be accompanied by the national minimum acceptable bid, the first year's rental and the administrative fee.  The remittance must be in the form specified in 43 CFR 3103.1-1.  The remainder of the bonus bid, if any, must be submitted to the proper Bureau of Land Management (BLM) office within 10 working days after the last day of the oral auction.  Failure to submit the remainder of the bonus bid within 10 working days will result in rejection of the bid offer and forfeiture of all monies paid.

3.If the bidder is not the sole party in interest in the lease for which the bid is submitted, all other parties in interest may be required to furnish evidence of their qualifications upon written request by the BLM.

4.This bid may be executed (signed) before the oral auction.  If signed before the oral auction, this form cannot be modified without being executed again.

5.In view of the above requirement (4), the bidder may wish to leave the AMOUNT OF BID section blank so that final bid amount may be either completed by the bidder or the BLM at the oral auction.

Title 18 U.S.C. Section 1001 and Title 43 U.S.C. Section 1212 make it a crime for any person knowingly and willfully to make to any department or agency of the United States any false, fictitious or fraudulent statements or representations as to any matter within its jurisdiction. 

(Continued on page 2)OPTIONAL USE COPYex10-1.htm

    
      

      

    

    Exhibit 10.1

     

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (the "Agreement"), dated as of September 1, 2007 by and
      between Thomas Kidrin (the "Executive") and Worlds.com, Inc., a New Jersey
      corporation (the "Company").

    

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      Executive and the Company desire to enter into an Employment Agreement to
      provide for Executive's employment by the Company on the terms and subject
      to
      the conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the mutual promises, representations and
      warranties set forth herein, and for other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, the parties hereto,
      intending to be legally bound hereby, agree as follows:

    

     

    1.    Offices
      and Duties.  The Company hereby employs Executive during the Term
      (as hereinafter defined) to serve as the Company’s President and Chief Executive
      Officer and to perform such executive and supervisory duties on behalf of the
      Company as the Company’s Board of Directors may from time to time reasonably
      direct.  Executive hereby accepts such employment and agrees that
      throughout the Term he shall faithfully, diligently and to the best of his
      ability, in furtherance of the business of the Company, perform the duties
      assigned to him or incidental to the offices assumed by him pursuant to this
      Section.  Executive shall devote substantially all of his business
      time and attention to the business and affairs of the Company, but Executive
      shall not be required to devote any minimum amount of time or report or perform
      his duties hereunder on a fixed or periodic basis, and Executive may engage
      or
      participate in such other activities incidental to any other employment,
      occupation or business venture or enterprise as do not materially interfere
      with
      or compromise his ability to perform his duties hereunder.  Executive
      shall at all times be subject to the direction and control of the Company’s
      Board of Directors, and observe and comply with such rules, regulations,
      policies and practices as the Company’s Board of Directors may from time to time
      establish.

     

    2.    Term.  The
      employment of Executive hereunder shall commence on the date hereof and end
      on
      August 31, 2012, provided, that Executive shall have the right in his sole
      discretion to extend the term for an additional 12 months ending on August
      31, 2013, by notifying the Company in writing of such no later than June 1,
      2012, subject in all respects to earlier termination upon the terms and
      conditions provided elsewhere herein.  The term during which Executive
      is employed hereunder shall be referred to herein as the “Term”.  As
      used herein, “Termination Date” means the last day of the Term.

     

    3.    Compensation.

     

    (a)    As
      compensation for his services hereunder, the Company shall pay to Executive
      during the Term:

     

    (i)    a
      base
      salary at the rate of $200,000 per annum (the “Base Salary”), such Base Salary
      to be paid in substantially equal installments no less often than twice
      monthly;

     

    (ii)    the
      Base
      Salary shall be increased by 10% on January 1 of each year of the Term over
      the prior year’s Base Salary;

     

    (iii)           a
      car allowance in the amount of $1,000 per month, payable monthly;

     

    (iv)           a
      bonus (the “2.5% Bonus”) in respect of each Bonus Period (as hereinafter
      defined), payable within ninety (90) days after the end of such Bonus Period,
      in
      an amount equal to two and one-half percent (2.5%) of Pre-Tax Income (as
      hereinafter defined);

     

    (v)           a
      bonus (the “Additional Bonus”) in respect of each Bonus Period, payable within
      ninety (90) days after the end of such Bonus Period, as follows: (A) $75,000,
      if
      Pre-Tax Income for the Bonus Period is between 150% and 200% of the prior fiscal
      year’s Pre-Tax Income; or (B) $100,000, if Pre-Tax Income for the Bonus Period
      is between 201% and 250% of the prior fiscal year’s Pre-Tax Income; or (C)
      $200,000, if Pre-Tax Income for the Bonus Period is 251% or greater than the
      prior fiscal year’s Pre-Tax Income; but in no event shall the Additional Bonus
      payable to Executive with respect to any Bonus Period exceed five (5%) percent
      of Pre-Tax Income for such Bonus Period; and

     

    (vi)           such
      additional incentive or bonus compensation as the Company’s Board of Directors
      may from time to time determine.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)    For
      the
      purposes of paragraph 3(a):

     

    (i)    “Bonus
      Period” is a fiscal year of the Company ending during the Term; and

     

    (ii)    The
      “Pre-Tax Income” in any Bonus Period is the Company’s income before provision
      for income taxes.

     

    The
      determination of the Pre-Tax Income and the 2.5% Bonus and Additional Bonus
      for
      any Bonus Period shall be determined by the Company’s then Chief Financial
      Officer (or other senior most accounting official if no one holds a position
      with that title) in accordance with the Company’s audited financial statements
      as prepared by the Company’s independent auditor, which shall be conclusive and
      binding upon the Company and Executive.

     

    (c)    The
      Company shall provide major medical, hospitalization and dental insurance for
      the benefit of Executive and his family consistent with benefits made available
      to other of the Company’s senior executives and if no such benefits are then
      available or paid to other executives, than in amount of, and providing coverage
      for, no lesser benefits than Executive has prior to the date hereof, and the
      Company shall pay all premiums and any other costs or expenses incurred to
      maintain such policies in effect during the Term.

     

    (d)    In
      addition to his Base Salary and other compensation provided herein, Executive
      shall be entitled to participate, to the extent he is eligible under the terms
      and conditions thereof, in any stock, stock option or other equity participation
      plan and any profit-sharing, pension, retirement, insurance, medical service
      or
      other employee benefit plan generally available to the executive officers of
      the
      Company, and to receive any other benefits or perquisites generally available
      to
      the executive officers of the Company pursuant to any employment policy or
      practice, which may be in effect from time to time during the
      Term.  The above notwithstanding, the Company shall use its
      commercially reasonable efforts to obtain for the benefit of Executive a life
      insurance policy with a death benefit of at least $2 million payable to a
      beneficiary of Executive’s choice, provided, however, that the Company shall not
      be obligated to spend more than $10,000 annually on the premiums for such
      policy.  Except as otherwise expressly provided herein, the Company
      shall be under no obligation hereunder to institute or to continue any such
      employee benefit plan or employment policy or practice.

     

    (e)    No
      provision hereof is intended, or shall be deemed, to impair or limit Executive’s
      eligibility to receive, or any right he may now or at any time hereafter have
      to
      receive, hold or dispose of any common stock, par value $.001 per share, of
      the
      Company (the “Common Stock”) or other securities of the Company or to receive,
      hold or exercise any options, warrants or other rights to acquire any Common
      Stock or other securities of the Company.

     

    (f)    During
      the Term, Executive shall not be entitled to additional compensation for serving
      in any office of the Company (or any subsidiary thereof) to which he is elected
      or appointed, except that, throughout any period or periods during which he
      shall serve as a director of the Company (or such subsidiary), Executive shall
      be entitled to directors’ fees in accordance with the policies and practices of
      the Company (or such subsidiary) then in effect.

     

    4.    Stock
      Options.

     

    (a)    By
      its
      approval of this Agreement, the Company’s Board of Directors has approved the
      issuance to Executive of an option to acquire 15,000,000 shares of the Company’s
      Common Stock, under and pursuant to the provisions of the Worlds.com, Inc.
      2007
      Stock Option Plan, as adopted by the Company’s Board of Directors and as will be
      submitted to the Company’s Shareholders for approval (the “Plan”) and on the
      terms set forth in the Stock Option Agreement annexed to this Agreement as
      Exhibit A (the “Option Agreement”), which provides inter alia that such
      option shall vest as set forth below, and be exercisable at the exercise price
      of $0.05 per share at any time during the five (5) year period following the
      date hereof (subject to earlier termination as provided under the
      Plan):

     

    (i)           the
      option to acquire 5,000,000 shares shall vest immediately;

     

    (ii)           the
      option to acquire 5,000,000 shares shall vest on August 31, 2008;
      and

     

    (iii)           the
      option to acquire 5,000,000 shares shall vest on August 31, 2009.

     

     (b)  The
      option being granted
      hereby is subject in all respects to the terms and provisions of the Plan and
      the Option Agreement, including, without limitation, the termination provisions
      contained in the Plan, and in the event of any conflict between the terms of
      this Agreement and the Plan or the Option Agreement, the Plan or the Option
      Agreement shall control.  The option granted hereby is also subject to
      the approval of the Plan by the Company’s shareholders.   It is
      the intention of the parties hereto that, to the extent possible, the options
      granted herein shall be “incentive stock options” as such term is defined in the
      Internal Revenue Code of 1986 and any of the terms of the options shall be
      modified, as minimally as necessary, to maintain their status as incentive
      stock
      options.

     

    (c)    Executive
      shall receive such other option, restrictive stock awards or other
      security-based compensation as the Board of Directors shall
      approve.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.    Expense
      Allowance.  The Company shall pay directly, or advance funds to
      Executive or reimburse Executive for, all expenses reasonably incurred by him
      in
      connection with the performance of his duties as an employee or consultant
      hereunder, upon the submission to the Company of itemized expense reports,
      receipts or vouchers in accordance with its then customary policies and
      practices.

     

    6.    Location;
      Office.  Except for routine travel and temporary accommodation
      reasonably required to perform his services hereunder, Executive shall not
      be
      required to perform his services hereunder at any location other than the
      principal executive office of the Company, which office shall be located
      throughout the Term at its location on the date hereof, or, if relocated, at
      a
      location within a distance of 30 miles from its location on the date hereof,
      or
      at such other office or site to which Executive may, in his sole discretion,
      consent; nor shall he be required to relocate his principal residence to, or
      otherwise to reside at, any location specified by the Company.  The
      Company shall provide Executive with suitable office space, furnishings and
      equipment, secretarial and clerical services and such other facilities and
      office support as Executive may reasonably request.

     

    7.    Vacation.  Executive
      shall be entitled to four (4) weeks paid vacation during each year of his full
      time employment hereunder, such vacation to be taken at such time or times
      as
      shall be agreed upon by Executive and the Company.  Vacation time
      shall be cumulative from year to year, except that Executive shall not be
      entitled to take more than six weeks vacation during any consecutive 12-month
      period during the Term.  Accrued but unused vacation time shall be
      paid in cash on the Termination Date, except that in the event of a Termination
      pursuant to Section 12, the amount of accrued vacation time to be paid on the
      Termination Date shall be limited to six weeks and in the event of a Termination
      pursuant to Section 13, the amount of vacation time to be paid on the
      Termination Date shall be limited to four weeks.

     

    8.    Key-Man
      Insurance.  The Company shall have the right from time to time to
      purchase, increase, modify or terminate insurance policies on the life of
      Executive for the benefit of the Company in such amounts as the Company may
      determine in its sole discretion.  In connection therewith, Executive
      shall, at such time or times and at such place or places as the Company may
      reasonably direct, submit himself to such physical examinations and execute
      and
      deliver such documents as the Company may deem necessary or
      appropriate.

     

    9.    Trade
      Secrets.

     

    (a)  Executive
      shall hold in a fiduciary capacity for the benefit of the Company all
      confidential or proprietary information relating to or concerned with the
      Company or its Affiliates (as defined below) or its products or services,
      prospective products or services, operations, business and affairs
      (“Confidential Information”), and he shall not, at any time hereafter, use or
      disclose any Confidential Information to any person other than to the Company
      or
      its designees or except as may otherwise be required in connection with the
      business and affairs of the Company, and in furtherance of the foregoing
      Executive agrees that:

     

    (i)           Executive
      will receive, maintain and hold Confidential Information in strict confidence
      and will use the same level of care in safeguarding it that he uses with his
      own
      confidential material of a similar nature;

     

    (ii)           Executive
      will take all such steps as may be reasonably necessary to prevent the
      disclosure of Confidential Information; and

     

    (iii)           Executive
      will not utilize Confidential Information for his personal benefit without
      first
      having obtained the Company’s consent to such utilization.

     

    “Affiliate”
      of a Person means another Person directly or indirectly controlling, controlled
      by, or under common control with, such Person; for this purpose, “control” of a
      Person means the power (whether or not exercised) to direct the policies,
      operations or activities of such Person by virtue of the ownership of, or right
      to vote or direct the manner of voting of, securities of such Person, or
      pursuant to agreement or law or otherwise.  The term “Person” includes
      without limitation a natural person, corporation, joint stock company, limited
      liability company, partnership, joint venture, association, trust, governmental
      authority, or any group of the foregoing acting in concert.

     

    (b)  The
      commitments set forth in paragraph 9(a) shall not extend to any portion of
      Confidential Information:

     

    (i)           that
      is generally available to the public;

     

    (ii)           that
      was not acquired, directly or indirectly and/or in any manner, from the Company
      and which Executive lawfully had in his possession prior to the date of this
      Agreement; or

     

    (iii)           that,
      hereafter, through no act or omission on the part of the Executive, becomes
      information generally available to the public.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)           At
      any time upon written request by the Company (i) the Confidential Information,
      including any copies, shall be returned to the Company, and (ii) all documents,
      drawings, specifications, computer software, and any other material whatsoever
      in the possession of the Executive that relates to such Confidential
      Information, including all copies and/or any other form of reproduction and/or
      description thereof made by Executive shall, at the Company’s option, be
      returned to the Company or destroyed.

     

       
      (d)           In the
      event that Executive becomes legally compelled (by deposition, interrogatory,
      request of documents, subpoena, civil investigative demand or similar process)
      to disclose any of the Confidential Information, the Executive shall provide
      the
      Company with prompt prior written notice of such requirement so that it (or
      its
      designees) may seek a protective order or other appropriate remedy and/or waive
      compliance with the terms of this Agreement.  In the event that such
      protective order or other remedy is not obtained, or the Company waives
      compliance with the provisions hereof, the Executive agrees to furnish only
      such
      portion of the Confidential Information which is legally required to be
      furnished.

     

    10.    Intellectual
      Property.  Any idea, invention, design, process, system,
      procedure, improvement, development or discovery conceived, developed, created
      or made by Executive, alone or with others, during the Term and applicable
      to
      the business of the Company, whether or not patentable or registrable, shall
      become the sole and exclusive property of the Company.  Executive
      shall disclose the same promptly and completely to the Company and shall, during
      the Term or thereafter, (i) execute all documents requested by the Company
      for
      vesting in the Company the entire right, title and interest in and to the same,
      (ii) execute all documents requested by the Company for filing and procuring
      such applications for patents, trademarks, service marks or copyrights as the
      Company, in its sole discretion, may desire to prosecute, and (iii) give the
      Company all assistance it may reasonably require, including the giving of
      testimony in any Proceeding (as defined below), in other to obtain, maintain
      and
      protect the Company’s right therein and thereto.

     

    A
      “Proceeding” is any suit, action, arbitration, audit, investigation or other
      proceeding before or by any court, magistrate, arbitration panel or other
      tribunal, or any governmental agency, authority or instrumentality of competent
      jurisdiction.

     

    11.    No
      Competition.

     

    (a)    During
      the Restricted Period (as defined below), Executive shall not, directly or
      indirectly:

     

    (i)    own,
      control, manage, operate, participate or invest in, or otherwise be connected
      with, in any manner, any business activity, venture or enterprise which is
      engaged in any business in the United States in which the Company (or any
      subsidiary thereof) is currently engaged or is engaged at the time of
      termination of Executive’s employment hereunder, or

     

    (ii)    for
      himself or on behalf of any other person, employ or engage any person who at
      the
      time shall have been within the preceding 12-month period an employee of the
      Company (or such subsidiary) or contact any supplier, customer or employee
      of
      the Company (or such subsidiary) for the purpose of soliciting or diverting
      any
      supplier, customer or employee from the Company (or such
      subsidiary).

     

    (b)    The
      provisions of paragraph 11(a) notwithstanding, Executive may invest his
      funds in securities of an issuer if the securities of such issuer are listed
      for
      trading on a registered securities exchange or actively traded in an
      over-the-counter market and Executive’s holdings therein represent less than 5%
      of the total number of shares or principal amount of the securities of such
      issuer outstanding.

     

    (c)    Executive
      acknowledges that the provisions of this Section, and the period of time,
      geographic area and scope and type of restrictions on his activities set forth
      herein, are reasonable and necessary for the protection of the
      Company.

     

    (d)    “Restricted
      Period” shall mean the period commencing on the date hereof and ending August
      31, 2012; provided, however, that if Executive has exercised his option to
      extend the Term to August 31, 2013 in accordance with Section 2 hereof, the
      Restricted Period shall end August 31, 2014.

     

    12.    Termination
      Upon Disability.  In the event that the Board of Directors
      determines that the Executive is unable to perform his duties hereunder by
      reason of any disability or incapacity (due to any physical or mental injury,
      illness or defect) for an aggregate of 180 days in any consecutive 12-month
      period, the Company shall have the right to terminate Executive’s employment
      hereunder within 60 days after the 180th day of his disability or incapacity
      by
      giving Executive notice to such effect at least 30 days prior to the date of
      termination set forth in such notice, and on such date such employment shall
      terminate.  The Board of Directors’ determination shall be made after
      due inquiry, on the basis of convincing evidence presented in at least two
      medical opinions rendered by reputable physicians with experience in diagnosing
      and treating the condition described in the opinion.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.    Termination
      for Cause.

     

    (a)    In
      addition to any other rights or remedies provided by law or in this Agreement,
      the Company may terminate Executive’s employment under this Agreement
      if:

     

    (i)    Executive
      is convicted of, or enters a plea of guilty or nolo contendere (which
      plea is not withdrawn prior to its approval by the court) to, a felony offense
      or the commission of a fraud against, or embezzlement or misappropriation of
      funds or other assets of, the Company (or any subsidiary thereof) and either
      Executive fails to perfect an appeal of such conviction prior to the expiration
      of the maximum period of time within which, under applicable law or rules of
      court, such appeal may be perfected or, if Executive does perfect such an
      appeal, his conviction of such as offense is sustained on appeal;
      or

     

    (ii)    the
      Company’s Board of Directors determines, after due inquiry, based on convincing
      evidence, that Executive has:

     

    (A)   violated,
      or caused the Company (or any subsidiary thereof) or any officer, employee
      or
      other agent thereof, or any other person to violate, any material law,
      regulation or ordinance or any material rule, regulation, policy or practice
      established by the Company’s Board of Directors;

     

    (B)   willfully,
      or because of gross or persistent negligence, (x) failed properly to perform
      his
      duties hereunder or (y) acted in a manner detrimental to, or adverse to the
      interests of, the Company; or

     

    (C)   violated,
      or failed to perform or satisfy any material covenant, condition or obligation
      required to be performed or satisfied by Executive
      hereunder;

     

     

    
      	
                

            	
               

            

    

     

    
      	
                

            	
            

    

     

    
      	
                

            	
            

    

     

    and
      that,
      in the case of any violation or failure referred to in clause (A), (B) or (C)
      of
      this paragraph (ii) of Section 13(a), such violation or failure has caused,
      or
      is reasonably likely to cause, the Company to suffer or incur a substantial
      casualty, loss, penalty, expense or other liability or cost.

     

    (b)    The
      Company may effect such termination for cause by giving Executive notice to
      such
      effect, setting forth in reasonable detail the factual basis for such
      termination, at least thirty (30) days prior to the date of termination set
      forth therein; provided, however, that Executive may avoid such
      termination if Executive, prior to the date of termination set forth in such
      notice, explains to the reasonable satisfaction of the Company’s Board of
      Directors why the facts relied upon by the Company in terminating Executive’s
      employment do not constitute a For Cause Event (as defined below) or that
      Executive has ceased any such claimed violation and/or cured any such failure
      to
      perform within such 20 day period.

     

    (c)    In
      making
      any determination pursuant to Section 13(a) as to the occurrence of any act
      or
      event described in clauses (A) to (C) of paragraph (ii) thereof (each, a “For
      Cause Event”), each of the following shall constitute convincing evidence of
      such occurrence:

     

    (i)    if
      Executive is made a party to, or target of, any Proceeding arising under or
      relating to any For Cause Event, Executive’s failure to defend against such
      Proceeding or to answer any complaint filed against him therein, or to deny
      any
      claim, charge, averment, or allegation thereof asserting or based upon the
      occurrence of a For Cause Event;

     

    (ii)    any
      judgment, award, order, decree or other adjudication or ruling in any such
      Proceeding finding or based upon the occurrence of a For Cause Event;
      or

     

    (iii)    any
      settlement or compromise of, or consent decree issued in, any such Proceeding
      in
      which Executive expressly admits the occurrence of a For Cause
      Event;

     

    provided
      that none of the foregoing shall be dispositive or create an irrebuttable
      presumption of the occurrence of such For Cause Event; and provided
      further that the Company’s Board of Directors may rely on any other factor
      or event as convincing evidence of the occurrence of a For Cause
      Event.

     

    (d)    In
      determining and assessing the detrimental effect of any For Cause Event on
      the
      Company and whether such For Cause Event warrants the termination of Executive’s
      employment hereunder, the Company’s Board of Directors shall take the following
      factors, to the extent applicable and material, into account:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i)    whether
      the Company’s Board of Directors directed or authorized Executive to take, or to
      omit to take, any action involved in such For Cause Event, or approved,
      consented to or acquiesced in his taking or omitting to take such
      action;

     

    (ii)    any
      award
      of damages, penalty or other sanction, remedy or relief granted or imposed
      in
      any Proceeding based upon or relating to such For Cause Event, and whether
      such
      sanction, remedy or relief is sufficient to recompense the Company or any other
      injured person, or to prevent or to deter the recurrence of such For Cause
      Event;

     

    (iii)    whether
      any lesser sanction would be appropriate and effective; and

     

    (iv)    any
      adverse effect that the loss of Executive’s services would have, or be
      reasonably likely to have, upon the Company.

     

    14.    Termination
      by Executive for Good Reason. In addition to any other rights or remedies
      provided by law or in this Agreement, Executive may terminate his employment
      hereunder:

     

    (i)    if
      (A)
      the Company violates, or fails to perform or satisfy any material covenant,
      condition or obligation required to be performed or satisfied by it hereunder
      or, (B) as a result of any action or failure to act by the Company, there is
      a
      material change in the nature or scope of the duties, obligations, rights or
      powers of Executive’s employment, by giving the Company notice to such effect,
      setting forth in reasonable detail the factual basis for such termination,
      at
      least thirty (30) days prior to the date of termination set forth therein;
      provided however that the Company may avoid such termination if it,
      prior to the date of termination set forth in such notice, cures or explains
      to
      the reasonable satisfaction of Executive the factual basis for termination
      set
      forth therein; or

     

    (ii)    if
      a
      Change of Control (as hereinafter defined) occurs while Executive is a full-time
      employee of the Company, by giving the Company notice to such effect within
      ninety (90) days after the occurrence of such Change of Control, setting forth
      the event or circumstance constituting such Change of Control, such termination
      to be effective upon the date of termination, not more than thirty (30) days
      after the date of such notice, set forth therein or, if no such date is set
      forth therein, immediately upon delivery of such notice to the
      Company.

     

    15.    Voluntary
      Termination.  In addition to any other rights or remedies provided
      by law or in this Agreement, from and after the date hereof, Executive may
      terminate his employment hereunder by giving the Company written notice to
      such
      effect at least ninety (90) days prior to the date of termination set forth
      therein.

     

    16.    Compensation
      and Benefits upon Termination.

     

    (a)    Upon
      termination of Executive’s employment hereunder, he shall be entitled to
      receive, in any case, any Base Salary pursuant to Section 3(a)(i) accrued but
      unpaid to the Termination Date.  Any amount payable to Executive under
      this subparagraph shall be paid promptly, and in any event within thirty (30)
      days after the Termination Date.

     

    (b)    If
      Executive’s employment is terminated as a result of a “For Cause Event” pursuant
      to Section 13, except for the payment of any amount required to be made by
      Section 16(a), from and after the Termination Date, the Company shall have
      no
      further obligation to Executive hereunder, including without limitation any
      obligation pursuant to Section 18.

     

    (c)    If
      the
      Executive’s employment is terminated (i) by him pursuant to Section 14(i);
      or (ii) by the Company other than as a result of a “For Cause Event” pursuant to
      Section 13; he shall be entitled to receive an amount equal to the full
      value of any Base Salary still remaining until the end of the Term plus an
      amount equal to three times the Base Salary at the time of
      termination.  Notwithstanding the foregoing, if the Executive’s
      employment (but not consultancy) is terminated by the Company after a Change
      of
      Control has occurred for any reason other than as a result of a “For Cause
      Event” pursuant to Section 13, he shall be entitled to receive, upon the terms
      and subject to the conditions set forth in Section 17, the Parachute Amount
      (as
      hereinafter defined in Section 17).  Any amount payable to Executive
      under this subparagraph shall be paid promptly, and in any event within thirty
      (30) days after the Termination Date.

     

    (d)    If
      the
      Executive’s employment terminates as a result of a Change of Control pursuant to
      Section 14(ii), he shall be entitled to receive, upon the terms and subject
      to
      the conditions set forth in Section 17, the Parachute Amount.  Any
      amount payable to Executive under this subparagraph shall be paid promptly,
      and
      in any event within thirty (30) days after the Termination Date.

     

    (e)    If
      the
      Executive’s employment is terminated by him pursuant to Section 14(i) or
      14(ii) of this Agreement, or by the Company other than as a result of a “For
      Cause Event” pursuant to Section 13, or if the Executive voluntarily terminates
      his employment pursuant to Section 15(a) of this Agreement, the Company shall
      for the two (2) year period following the Termination Date maintain and pay
      for
      Executive and his family, or reimburse Executive, for the cost of medical,
      dental, and hospitalization benefits comparable to such benefits maintained
      by
      the Company during the twelve (12) months prior to the Termination
      Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)    Executive
      shall have no obligation hereunder to seek or to accept any other employment
      after the Termination Date or otherwise to mitigate the payments required to
      be
      made by this Section.  No compensation or other amount received or
      receivable by Executive on account of any employment or engagement after the
      Termination Date shall be offset against or deducted from any payment required
      to be made by this Section 16 or Section 17.

     

    (g)    In
      the
      event the Company terminates Executive other than as a result of a “For Cause
      Event” pursuant to Section 13, or if the Executive’s employment is terminated by
      him pursuant to Section 14(i) or 14(ii) of this Agreement, Executive shall
      receive as his sole and exclusive remedy and damages the payments he would
      otherwise be entitled to receive under the applicable provisions of this Section
      16 (and, if applicable, the other benefits provided under clause (g) of this
      Section 16).

     

    (h)    In
      the
      event of Executive’s death or if the Company terminates Executive for disability
      pursuant to Section 12, the Company shall pay, in the case of Executive’s
      death, Executive’s estate an amount equal to his then current Base Salary and in
      the event of termination for disability, an amount equal to two times his then
      current Base Salary.  Any amount payable to Executive (or his estate)
      under this subparagraph shall be paid promptly, and in any event within thirty
      (30) days after the date Executive dies or is terminated for disability, as
      the
      case may be.

     

    17.    Change
      of Control.

     

    (a)    For
      the
      purposes of this Section 17:

     

    (i)    The
“Act”
      is the Securities Exchange Act of 1934, as amended.

     

    (ii)    A
      “person” includes a “group” within the meaning of Section 13(d)(3) of the
      Act.

     

    (iii)    “Control”
      is used herein as defined in Rule 12b-2 under the Act.

     

    (iv)    “Beneficially
      owns” and “acquisition” are used herein as defined in Rules 13d-3 and
      13d-5, respectively, under the Act.

     

    (v)    “Non-Affiliated
      Person” means any person, other than Executive, an employee stock ownership
      trust of the Company (or any trustee thereof for the benefit of such trust),
      or
      any person controlled by Executive, the Company or such a trust.

     

    (vi)    “Voting
      Securities” includes Common Stock and any other securities of the Company that
      ordinarily entitle the holders thereof to vote, together with the holders of
      Common Stock or as a separate class, with respect to matters submitted to a
      vote
      of the holders of Common Stock, but securities of the Company as to which the
      consent of the holders thereof is required by applicable law or the terms of
      such securities only with respect to certain specified transactions or other
      matters, or the holders of which are entitled to vote only upon the occurrence
      of certain specified events (such as default in the payment of a mandatory
      dividend on preferred stock or a scheduled installment of principal or interest
      of any debt security), shall not be Voting Securities.

     

    (vii)    “Right”
      means any option, warrant or other right to acquire any Voting Security (other
      than such a right of conversion or exchange included in a Voting
      Security).

     

    (viii)    The
      “Code” is the Internal Revenue Code of 1986, as amended.

     

    (ix)    “Base
      amount,” “present value” and “parachute payment” are used herein as defined in
      Section 280G of the Code.

     

    (b)    A
“Change
      of Control” occurs when:

     

    (i)    a
      Non-Affiliated Person acquires control of the Company;

     

    (ii)    upon
      an
      acquisition of Voting Securities or Rights by a Non-Affiliated Person from
      persons other than the Executive (or persons controlled by the Executive) or
      any
      change in the number or voting power of outstanding Voting Securities, such
      Non-Affiliated Person beneficially owns Voting Securities or Rights entitling
      such person to cast a number of votes (determined in accordance with Section
      16(g)) equal to or greater than 25% of the sum of (A) the number of votes that
      may be cast by all other holders of outstanding Voting Securities and (B) the
      number of votes that may be cast by such Non-Affiliated Person (determined
      in
      accordance with Section 17(g)); or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii)    upon
      any
      change in the membership of the Company’s Board of Directors, a majority of the
      directors are persons who are not nominated or appointed by the Company’s Board
      of Directors as constituted prior to such change.

     

    (c)    The
      “Parachute Amount” to which Executive shall be entitled pursuant to
      Sections 16(c) and (d) shall equal 2.99 multiplied by the Executive’s base
      amount.

     

    (d)    It
      is
      intended that the present value of any payments or benefits to Executive,
      whether hereunder or otherwise, that are includible in the computation of the
      Parachute Amount shall not exceed 2.99 times the Executive’s base
      amount.  Accordingly, if Executive receives any payment or benefit
      from the Company prior to payment of the Parachute Amount which, when added
      to
      the Parachute Amount, would subject any of the payments or benefits to Executive
      to the excise tax imposed by Section 4999 of the Code, the Parachute Amount
      shall be reduced by the least amount necessary to avoid such tax.  The
      Company shall have no obligation hereunder to make any payment or provide any
      benefit to Executive after the payment of the Parachute Amount which would
      subject any of such payments or benefits to the excise tax imposed by Section
      4999 of the Code.

     

    (e)    Any
      other
      provision hereof notwithstanding, Executive may (but only to the extent not
      prohibited by the United States securities laws, as then amended), prior to
      his
      receipt of the Parachute Amount pursuant to Section 17(d), waive the payment
      thereof, or, after his receipt of the Parachute Amount thereunder, treat some
      or
      all of such amount as a loan from the Company which Executive shall repay to
      the
      Company within 180 days after the receipt thereof, together with interest
      thereon at the rate provided in Section 7872 of the Code, in either case, by
      giving the Company notice to such effect.

     

    (f)  Any
      determination of the Executive’s
      base amount, the Parachute Amount, any liability for excise tax under Section
      4999 of the Code or other matter required to be made pursuant to this Section
      17, shall be made by the Company’s regularly-engaged independent certified
      public accountants, whose determination shall be conclusive and binding upon
      the
      Company and Executive; provided that such accountants shall give to
      Executive, on or before the date on which payment of the Parachute Amount or
      any
      later payment or benefit would be made, a notice setting forth in reasonable
      detail such determination and the basis therefor, and stating expressly that
      Executive is entitled to rely thereon.

     

    (g)    The
      number of votes that may be cast by holders of Voting Securities or Rights
      upon
      the issuance or grant thereof shall be deemed to be the largest number of votes
      that may be cast by the holders of such securities or the holders of any other
      Voting Securities into which such Voting Securities or Rights are convertible
      or
      for which they are exchangeable or exercisable, determined as though such Voting
      Securities or Rights were immediately convertible, exchangeable or exercisable
      and without regard to any anti-dilution or other adjustments provided for
      therein.

     

    18.    Other
      Termination Provisions.

     

    (a)    Throughout
      the 7-year period following the Termination Date, the Company shall indemnify
      Executive, and hold him harmless from, any loss, damages, liability, obligation
      or expense that he may suffer or incur in connection with any claim made or
      Proceeding commenced during such period relating to his service as a director,
      officer, employee or agent of the Company (or any subsidiary thereof) to the
      same extent and in same manner as the Company shall be obligated so to indemnify
      Executive immediately prior to the Termination Date; provided that, if
      during such 7-year period the Company adopts or assumes any indemnification
      policy or practice with respect to its directors, officers, employees or agents
      that is more favorable than that in effect on the Termination Date, Executive
      shall be entitled to such more favorable indemnification.

     

    (b)    Throughout
      the 7-year period following the Termination Date, the Company shall maintain
      for
      the benefit of Executive directors’ and officers’ liability insurance (on a
“claims made” basis) providing coverage at least as favorable to Executive
      (including with respect to limits of liability, exclusions, and deductible
      and
      retention amounts) as that in effect on the Termination Date.

     

    19.    Limitation
      of Authority.  Except as expressly provided herein, no provision
      hereof shall be deemed to authorize or empower either party hereto to act on
      behalf of, obligate or bind the other party hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    20.    Notices.  Any
      notice or demand required or permitted to be given or made hereunder to or
      upon
      either party hereto shall be deemed to have been duly given or made for all
      purposes if (a) in writing and sent by (i) messenger or an overnight courier
      service against receipt, or (ii) certified or registered mail, postage paid,
      return receipt requested, or (b) sent by telegram, telecopy, telex or similar
      electronic means, provided that a written copy thereof is sent on the
      same day by postage-paid first-class mail, to such party at the following
      address:

     

    
      
        	
                to
                  the Company at:

              	
                its
                  then current address of its principal office as stated on the cover
                  page
                  of its most recent public filing under the Act and if such address
                  is then
                  Executive’s residence, to the address of the Company’s Chairman of the
                  Board.

              
	 	 
	
                with
                  a copy to:

              	
                Feder,
                  Kaszovitz, Isaacson, Weber,

              
	 	
                Skala,
                  Bass & Rhine LLP

              
	 	
                23rd
                  Floor

              
	 	
                750
                  Lexington Avenue

              
	 	
                New
                  York, New York 10022-1200

              
	 	
                Attn:Irving
                  Rothstein, Esq.

              
	 	
                Fax:
                  (212) 888-7776

              
	 	 
	
                to
                  Executive at:

              	
                15
                  Union Wharf

              
	
                   

              	
                Boston,
                  MA 02109

              
	
                   Fax:

              	
                (617)
                  975-3888

              

      

       

    

    or
      such
      other address as either party hereto may at any time, or from time to time,
      direct by notice given to the other party in accordance with this
      Section.  The date of giving or making of any such notice or demand
      shall be, in the case of clause (a) (i), the date of the receipt; in the case
      of
      clause (a) (ii), five business days after such notice or demand is sent; and,
      in
      the case of clause (b), the business day next following the date such notice
      or
      demand is sent.

     

    21.    Amendment.  Except
      as otherwise provided herein, no amendment of this Agreement shall be valid
      or
      effective, unless in writing and signed by or on behalf of the parties
      hereto.

     

    22.    Waiver.  No
      course of dealing or omission or delay on the part of either party hereto in
      asserting or exercising any right hereunder shall constitute or operate as
      a
      waiver of any such right.  No waiver of any provision hereof shall be
      effective, unless in writing and signed by or on behalf of the party to be
      charged therewith.  No waiver shall be deemed a continuing waiver or
      waiver in respect of any other or subsequent breach or default, unless expressly
      so stated in writing.

     

    23.    Governing
      Law.  This Agreement shall be governed by, and interpreted and
      enforced in accordance with, the laws of the State of New York without regard
      to
      principles of choice of law or conflict of laws.

     

    24.    Jurisdiction.  Each
      of the parties hereto hereby irrevocably consents and submits to the
      jurisdiction of the courts of the State of New York and the United States
      District Court for the Southern District of New York in connection with any
      suit, action or proceeding arising out of or relating to this Agreement or
      the
      transactions contemplated hereby, waives any objection to venue in the County
      of
      New York or Rockland, State of New York, or such District, and agrees that
      service of any summons, complaint, notice or other process relating to such
      proceeding may be effected in the manner provided by clause (a) (ii) of Section
      20.

     

    25.    Remedies.  In
      the event of any actual or prospective breach or default by either party hereto,
      the other party shall be entitled to equitable relief, including remedies in
      the
      nature of rescission, injunction and specific performance.  All
      remedies hereunder are cumulative and not exclusive, and nothing herein shall
      be
      deemed to prohibit or limit either party from pursuing any other remedy or
      relief available at law or in equity for such actual or prospective breach
      or
      default, including the recovery of damages.

     

    26.    Severability.  The
      provisions hereof are severable and in the event that any provision of this
      Agreement shall be determined to be invalid or unenforceable in any respect
      by a
      court of competent jurisdiction, the remaining provisions hereof shall not
      be
      affected, but shall, subject to the discretion of such court, remain in full
      force and effect, and any invalid or unenforceable provision shall be deemed,
      without further action on the part of the parties hereto, amended and limited
      to
      the extent necessary to render the same valid and enforceable.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    27.    Counterparts.  This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and which together shall constitute one and the same
      agreement.

     

    28.    Assignment.  This
      Agreement, and each right, interest and obligation hereunder, may not be
      assigned by either party hereto without the prior written consent of the other
      party hereto, and any purported assignment without such consent shall be void
      and without effect, except that this Agreement shall be assigned to, and assumed
      by, any person with or into which the Company merges or consolidates, or which
      acquires all or substantially all of its assets, or which otherwise succeeds
      to
      and continues the Company’s business substantially as an
      entirety.  Except as otherwise expressly provided herein or required
      by law, Executive shall not have any power of anticipation, assignment or
      alienation of any payments required to be made to him hereunder, and no other
      person may acquire any right or interest in any thereof by reason of any
      purported sale, assignment or other disposition thereof, whether voluntary
      or
      involuntary, any claim in a bankruptcy or other insolvency proceeding against
      Executive, or any other ruling, judgment, order, writ or decree.

     

    29.    Binding
      Effect.  This Agreement shall be binding upon and inure to the
      benefit of the parties hereto and their respective successors and permitted
      assigns.  This Agreement is not intended, and shall not be deemed, to
      create or confer any right or interest for the benefit of any person not a
      party
      hereto.

     

    30.    Titles
      and Captions.  The titles and captions of the Articles and
      Sections of this Agreement are for convenience of reference only and do not
      in
      any way define or interpret the intent of the parties or modify or otherwise
      affect any of the provisions hereof.

     

    31.    Grammatical
      Conventions.  Whenever the context so requires, each pronoun or
      verb used herein shall be construed in the singular or the plural sense and
      each
      capitalized term defined herein and each pronoun used herein shall be construed
      in the masculine, feminine or neuter sense.

     

    32.    References.  The
      terms "herein," "hereto," "hereof," "hereby," and "hereunder," and other terms
      of similar import, refer to this Agreement as a whole, and not to any Article,
      Section or other part hereof.

     

    33.    No
      Presumptions.  Each party hereto acknowledges that it has had an
      opportunity to consult with counsel and has participated in the preparation
      of
      this Agreement.  No party hereto is entitled to any presumption with
      respect to the interpretation of any provision hereof or the resolution of
      any
      alleged ambiguity herein based on any claim that the other party hereto drafted
      or controlled the drafting of this Agreement.

     

    34.    Entire
      Agreement.  This Agreement embodies the entire agreement of the
      parties hereto with respect to the subject matter hereof and supersedes any
      prior agreement, commitment or arrangement relating thereto, written or oral,
      if
      any, which shall terminate immediately upon the commencement of the Term, except
      that each party thereto shall (a) remain required to perform any act and to
      satisfy any obligation or condition that such party is required to perform
      or
      satisfy thereunder with respect to any event occurring or circumstance existing
      prior to the commencement of the Term hereof (including without limitation
      the
      payment or delivery to Executive of any compensation, reimbursable expense
      or
      employee benefit or perquisite to which he may be entitled, but which has not
      yet been paid to him, on account of his employment under any such prior
      arrangement) that has not been so performed or satisfied, and (b) retain his
      or
      its right under any such prior assignment to assert or to allege any claim
      or
      cause of action relating to or based upon, or otherwise to enforce, any
      provision thereof with respect to any event occurring or circumstance existing
      during the term thereof.

     

     

    IN
      WITNESS WHEREOF, the undersigned have duly executed this Agree­ment as of
      the day and year first above written.

     

    
      
        	 	
                THE
                  COMPANY:

              
	 	 
	 	
                WORLDS.COM,
                  INC.

              
	 	 
	 	 
	
                By:

              	                                                                     
                
	 	
                Name:
                  Robert Fireman

              
	 	
                Title:
                  Director (on behalf of the
                  Board)

              

      

    

     

    
      
        	 	
                
                  EXECUTIVE:

                

              
	 	 
	 	
                                                                                     
                  

              
	 	Thomas
                Kidrin

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