Document:

Exhibit
      10.7

    

    FORM
      OF ESCROW AGREEMENT

    

    This
      Escrow Agreement (the “Agreement”) is made by and between Phillips Nizer LLP, a
      New York limited liability partnership, with its principal office located at
      666
      Fifth Avenue, 28th
      Floor,
      New York, NY 10103 (the “Escrow Agent”), and Seguso Holdings, Inc., a New York
      corporation, with its principal office located at 3405 54th Drive West, #G102,
      Bradenton, FL 34210 (the “Issuer”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Issuer has filed with the Securities and Exchange Commission (the
“Commission”), Washington, D.C., an SB-2 Registration Statement (the
“Registration Statement”), and related Prospectus, File No. 333-122697, declared
      effective by the Commission on October 26, 2007, in connection with an initial
      public offering (the “Offering”) of the Issuer’s securities, comprising 500,000
      shares of the Issuer’s common stock to be sold at a price of $0.10 per share
      (the “Securities”), which shall be purchased by any investor in not less than
      5,000 shares and in multiples of 100;

     

    WHEREAS,
      the Issuer proposes to offer the Securities to the public on a “best efforts,
      all or none” basis as set forth in the Registration Statement;

     

    WHEREAS,
      the Offering is to be made in accordance with Rule 419 (“Rule 419”) under the
      Securities Act of 1933, as amended (the “Act”) and the Offering has been
      registered with the Commission;

     

    WHEREAS,
      the Company desires to establish an escrow account (the “Escrow Account”) in
      which funds received from subscribers and securities issued in connection with
      the offering will be deposited pending completion of the escrow period. The
      Escrow Agent has agreed to maintain an escrow account with Sterling National
      Bank, an insured depository institution in accordance with Rule 419(b)
      (1)(i)(A), and the Escrow Agent in accordance with the terms and conditions
      set
      forth herein as more specifically directed under Rule 419.

     

    WHEREAS,
      the proceeds deposited in the Escrow Account are to be released to the Company
      only in the event of the consummation of a business combination in accordance
      with the terms hereof, and within the time set forth herein, and otherwise
      the
      escrowed proceeds are to be returned to the purchasers of the Securities in
      accordance with the terms and conditions set forth herein, and all as
      specifically directed under Rule 419.

     

    NOW,
      THEREFORE, for and in consideration of the promises and mutual covenants herein
      contained, and other valuable consideration, the parties hereto hereby agree
      as
      follows:

     

    1. THE
      REGISTRATION STATEMENT.

    1.1 The
      Registration Statement is included herein as Exhibit
      A
      to this
      Agreement, and is made a part hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              ESTABLISHMENT
                OF THE ESCROW ACCOUNT.

            

    

     

    2.1 The
      Issuer shall establish a non-interest-bearing Escrow Account maintained by
      the
      Escrow Agent. The purpose of the Escrow Account is for (a) the deposit of all
      subscription funds (checks, drafts or money orders ) which are received by
      the
      Issuer from prospective purchasers of the Securities and are delivered by the
      Issuer to the Escrow Agent; (b) the holding of amounts of subscription funds
      which are collected through the banking system, (c) the holding of securities
      issued in connection with the offering, and (d) the disbursement of collected
      funds and securities, all as described herein.

     

    2.2 The
      Issuer has notified the Escrow Agent in writing of the effective date (the
      “Effective Date”) of the Registration Statement, and the date when the business
      combination must be completed, namely April 26, 2009.

     

    2.3 The
      offering period (the “Offering Period”), which commenced on October 26, 2007
      (the “Effective Date”), shall end on April 23, 2008. The Offering Period shall
      be extended by an extension period only if the Escrow Agent shall have received
      written notice thereof at least five business days prior to the expiration
      of
      the Offering Period. The extension period, which shall be deemed to commence
      the
      next calendar day following the expiration of the Offering Period, shall consist
      of the number of calendar days or business days set forth in the Registration
      Statement. The last day of the Offering Period, or the last day of the extension
      period, is referred to herein as the “Termination Date.” Except
      as provided in Section 4.3 hereof, after the Termination Date, the Issuer shall
      not deposit, and the Escrow Agent shall not accept, any additional amounts
      representing payments by prospective purchasers.

     

    
      	
              3.

            	
              DEPOSITS
                TO THE ESCROW ACCOUNT.

            

    

     

    3.1 The
      Issuer shall promptly deliver to the Escrow Agent all Securities issued to,
      and
      all funds which it receives from, prospective purchasers of the Securities,
      which funds shall be in the form of checks, drafts or money orders .
Upon
      the Escrow Agent’s receipt of such Securities and funds, they shall be credited
      to the Escrow Account. All checks delivered to the Escrow Agent shall be made
      payable to Phillips Nizer LLP Escrow Account for Seguso Holdings, Inc.
Any
      checks payable other than to the Escrow Agent as required hereby shall be
      returned to the prospective purchaser.

     

    3.2 Promptly
      after receiving subscription funds as described in Section 3.1, the Escrow
      Agent
      shall deposit the same into the Escrow Account. Amounts of funds so deposited
      are hereinafter referred to as “Escrow Amounts.” The Escrow Agent shall cause to
      process all Escrow Amounts for collection through the banking system.
      Simultaneously with each deposit to the Escrow Account, the Issuer shall inform
      the Escrow Agent in writing of the name, address and social security number
      of
      the prospective purchaser, the amount of Securities subscribed for by such
      purchaser, and the aggregate dollar amount of such subscription (collectively,
      the “Subscription Information”).

     

    3.3 The
      Escrow Agent shall not be required to accept for credit to the Escrow Account
      checks which are not accompanied by the appropriate Subscription Information.
      Payments by prospective purchasers shall not be deemed deposited in the Escrow
      Account until the Escrow Agent has received in writing the Subscription
      Information required with respect to such payments.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.4 The
      Escrow Agent shall not be required to accept in the Escrow Account any amounts
      representing payments by prospective purchasers, whether by check, draft or
      money order, except during the Escrow Agent’s regular business
      hours.

     

    3.5 Only
      those Escrow Amounts, which have been deposited in the Escrow Account and which
      have cleared the banking system and have been collected by the Escrow Agent,
      are
      herein referred to as the “Fund.”

     

    3.6 If
      the
      proposed Offering is terminated before the Termination Date, the Escrow Agent
      shall refund any portion of the Fund prior to disbursement of the Fund in
      accordance with Article 4 hereof upon instructions in from the
      Issuer.

     

    
      	
              4.

            	
              DISBURSEMENT
                FROM THE ESCROW ACCOUNT.

            

    

     

    4.1 Subject
      to Section 4.3 below, if by the close of regular banking hours on April 23,
      2008, the Escrow Agent determines that the amount in the Fund is less than
      the
      minimum amount of the Offering, then the Escrow Agent shall promptly refund
      to
      each prospective purchaser the amount of payment received from such purchaser
      which is then held in the Fund or which thereafter clears the banking system,
      without interest thereon or deduction therefrom, by drawing checks on the Escrow
      Account for the amounts of such payments and mail them to the purchasers. In
      such event, the Escrow Agent shall promptly notify the Issuer of its
      distribution of the Fund and return all Securities held by the Escrow Agent
      to
      the Issuer.

     

    4.2 The
      terms
      of the Offering must provide, and the Issuer must satisfy, the following
      conditions: within five business days after the effective date of the
      post-effective amendment, the Issuer shall send by first class mail to each
      purchaser of securities held in escrow, a copy of the prospectus contained
      in
      the post-effective amendment and any amendment or supplement thereto; each
      purchaser shall have no fewer than 20 business days and no more than 45 business
      days from the effective date of the post-effective amendment to notify the
      Issuer in writing that the purchaser elects to remain an investor. If the Issuer
      has not received such written notification by the 45th business day following
      the effective date of the post-effective amendment, funds and interest or
      dividends, if any held in escrow shall be sent by first class mail or other
      equally prompt means to the purchaser within five business days; the acquisition
      meeting the criteria set forth above will be consummated if a sufficient number
      of purchasers confirm their investment with the Issuer; and if a consummated
      acquisition meeting the requirements above has not occurred by a date 18 months
      after the effective date of the Issuer’s initial registration statement, funds
      held in escrow shall be returned by first class mail to the purchasers with
      five
      business days following that date. The Issuer shall promptly notify Escrow
      Agent
      if any of the above conditions are not timely satisfied.

     

    4.3 Funds
      held in the escrow account may be released to the Issuer and securities may
      be
      delivered to the purchaser only at the same time as or after: the
      escrow agent has received a signed representation from the Issuer, together
      with
      other evidence acceptable to the escrow agent, that the requirements of
      paragraphs (e)(1) and (e)(2) of Rule 419 have been met; and the escrow agent
      has
      received a signed representation from the Issuer, together with other evidence
      acceptable to the escrow agent, that the requirements of paragraph (e)(2)(iii)
      of Rule 419 have been met.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.4 If
      the
      Escrow Agent has on hand at the close of business on the Termination Date any
      uncollected amounts which when added to the Fund would raise the amount in
      the
      Fund to the minimum offering amount, and result in the Fund, the Collection
      Period, consisting of the number of five (5) business days shall be utilized
      to
      allow such uncollected funds to clear the banking system.

     

    4.5 Upon
      disbursement of the Fund pursuant to the terms of this Article 4, the Escrow
      Agent shall be relieved of all further obligations and released from all
      liability under this Agreement. It is expressly agreed and understood that
      in no
      event shall the aggregate amount of payments made by the Escrow Agent exceed
      the
      amount of the Fund.

     

    
      	
              5.

            	
              RIGHTS,
                DUTIES AND RESPONSIBILITIES OF THE ESCROW AGENT; INDEMNIFICATION.

            

    

     

    5.1 The
      Escrow Agent shall notify the Issuer on a regular basis of the escrow amounts
      which have been deposited in the Escrow Account and of the amounts, constituting
      the Fund, which have cleared the banking system and have been collected by
      the
      Escrow Agent.

     

    5.2 The
      Escrow Agent shall not be responsible for or be required to enforce any of
      the
      terms or conditions of the Agreement with respect to the Issuer.

     

    5.3 The
      Escrow Agent shall not be required to accept from the Issuer any subscription
      information pertaining to prospective purchasers unless such Subscription
      Information is accompanied by checks or wire transfers meeting the requirement
      of Section 3.1, nor shall the Escrow Agent be required to keep records of any
      information with respect to payments deposited by the Issuer, except as to
      the
      amount of such payments; however, the Escrow Agent shall notify the Issuer
      within a reasonable time of any discrepancy between the amount set forth in
      any
      subscription information and the amount delivered to the Escrow Agent therewith.
      Such amount need not be accepted for deposit in the Escrow Agent until such
      discrepancy has been resolved.

     

    5.4 The
      Escrow Agent shall be under no duty or responsibility to enforce collection
      of
      any check delivered to it hereunder. The Escrow Agent, within a reasonable
      time,
      shall return to the Issuer any check received which is dishonored, together
      with
      the Subscription Information which accompanied such check.

     

    5.5 The
      Escrow Agent shall be entitled to rely upon the accuracy, act in reliance upon
      the contents, and assume the genuineness of any notice, instruction,
      certificate, signature, instrument or other document which is given to the
      Escrow Agent by the Issuer pursuant to this Agreement without the necessity
      of
      the Escrow Agent verifying its truth or accuracy. Thereof, the Escrow Agent
      shall not be obligated to make any inquiry as to the authority, capacity,
      existence or identity of any person purporting to give any such notice or
      instructions or to execute any such certificate, instrument or other
      document.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.6 If
      the
      Escrow Agent is uncertain as to its duties or rights hereunder or shall receive
      instructions with respect to the Escrow Account, the escrow amounts of the
      Fund
      which, in its sole determination, are in conflict either with other instructions
      received by it or with any provision of this Agreement, it shall be entitled
      to
      hold the escrow amounts, the Fund or a portion thereof, in the Escrow Account
      pending the resolution of such uncertainty to the Escrow Agent’s sole
      satisfaction, by final judgment of a court of competent jurisdiction or
      otherwise; or the Escrow Agent, at its sole option, may deposit with the Clerk
      of a court of competent jurisdiction in a proceeding to which all parties in
      interest are joined. Upon the deposit by the Escrow Agent of the Fund with
      the
      Clerk of any court, the Escrow Agent shall be relieved of all further
      obligations and released from all liability hereunder.

     

    5.7 The
      Escrow Agent shall not be liable for any action taken or omitted hereunder,
      or
      for the misconduct of any employee, agent or attorney appointed by it, except
      in
      the case of willful misconduct or gross negligence. The Escrow Agent shall
      be
      entitled to consult with counsel of its own choosing and shall not be liable
      for
      any action taken, suffered or omitted by it in accordance with the advice of
      such counsel.

     

    5.8 The
      Escrow Agent shall have no responsibility at any time to ascertain whether
      or
      not any security interest exists in the escrow amounts, the Fund or any part
      thereof or to file any financing statement under the Uniform Commercial Code
      with respect to the Fund or any part thereof.

     

    5.9 The
      Issuer agrees to indemnify the Escrow Agent and its officers, directors,
      employees, agents, and shareholders (jointly and severally, the “Indemnitees”)
      against, and hold them harmless of and from, any and all losses, liabilities,
      costs, damages, and expenses, including, but not limited to, reasonable fees
      and
      disbursements for counsel of its own choosing (collectively, “Liabilities”),
      that the Indemnitees may suffer or incur and which arise out of or relate to
      this Agreement or any transaction to which this Agreement relates, unless such
      Liability is the result of the willful misconduct or gross negligence of the
      Indemnitees.

     

    5.10 If
      the
      indemnification provided for in this Section 5 is applicable but is held to
      be
      unavailable, the Issuer shall contribute such amounts as are just and equitable
      to pay or to reimburse the Indemnitees for the aggregate of any and all
      Liabilities actually incurred by the Indemnitees as a result of or in connection
      with any amount paid in settlement of any action, claim, or proceeding arising
      out of or relating in any way to any actions or omissions of the
      Issuer.

     

    5.11 The
      provisions of this Section 5 shall survive any termination of this Agreement,
      whether by disbursement of the Fund, resignation of the Escrow Agent, or
      otherwise.

     

    
      	
              6.

            	
              AMENDMENT;
                RESIGNATION.

            

    

     

    6.1 This
      Agreement may be altered or amended only with the written consent of the parties
      hereto. The Escrow Agent may resign for any reason upon five business days’
written notice to the Issuer. Should the Escrow Agent resign as herein provided,
      it shall not be required to accept any deposit, make any disbursement or
      otherwise dispose of the escrow amounts, but its only duty shall be to hold
      the
      escrow accounts until they clear the banking system and the Fund for a period
      of
      not more than five business days following the effective date of such
      resignation, at which time (a) if a successor escrow agent shall have been
      appointed and written notice thereof shall have been given to the resigning
      escrow agent by the Issuer and such successor escrow agent, then the resigning
      escrow agent shall pay over to the successor escrow agent the Fund, less any
      portion thereof previously paid out in accordance with this Agreement; or (b)
      if
      the resigning escrow agent shall not have received written notice signed by
      the
      Issuer and a successor escrow agent, then the resigning escrow agent shall
      promptly refund the amount in the Fund to each prospective purchaser, without
      interest thereon or deduction therefrom, and the resigning Escrow Agent shall
      promptly notify the Issuer of its liquidation and distribution of the Fund;
      whereupon, in either case, the Escrow Agent shall be relieved of all further
      obligations and released from all liability under this Agreement. Without
      limiting the provisions of Section 8 hereof, the resigning Escrow Agent shall
      be
      entitled to be reimbursed by the Issuer for any expenses incurred in connection
      with its resignation, transfer of the Fund to a successor escrow agent
      or
      distribution of the Fund pursuant to this Section 6.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.

            	
              REPRESENTATIONS
                AND WARRANTIES.

            

    

     

    7.1 The
      Issuer represents and warrants to the Escrow Agent that no party other than
      the
      parties hereto and the prospective purchasers have, or shall have, any claim
      or
      security interest in the Fund or any part thereof.

     

    7.2 No
      financing statement under the Uniform Commercial Code is on file in any
      jurisdiction claiming a security interest in or describing the Fund or any
      part
      thereof.

     

    7.3 The
      Subscription Information submitted with each deposit shall, at the time of
      submission and at the time of the disbursement of the Fund, be deemed a
      representation and warranty that such deposit represents a bona fide payment
      by
      the purchaser described therein for the amount of Securities set forth in such
      Subscription Information.

     

    7.4 All
      of
      the information contained in the Registration Statement is, as of the date
      hereof, and will be, at the time of any disbursement of the Fund, true and
      correct.

     

    
      	
              8.

            	
              FEES
                AND EXPENSES.

            

    

     

    8.1 The
      Escrow Agent shall be entitled to an acceptance fee of $1,000 and an annual
      administrative fee of $1,000, payable upon the execution of this Agreement.
      In
      addition, the Issuer agrees to reimburse the Escrow Agent for any reasonable
      fees and expenses incurred in connection with this Agreement.

     

    
      	
              9.

            	
              GOVERNING
                LAW AND ASSIGNMENT.

            

    

     

    9.1 This
      Agreement shall be construed in accordance with and governed by the laws of
      the
      State of New York and shall be binding upon the parties hereto and their
      respective successors and assigns; provided, however, that any assignment or
      transfer by any party of its rights under this Agreement or with respect to
      the
      Fund shall be void as against the Escrow Agent unless (a) written notice thereof
      shall be given to the Escrow Agent; and (b) the Escrow Agent shall have
      consented in writing to such assignment or transfer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              10.

            	
              NOTICES.

            

    

     

    10. All
      notices required to be given in connection with this Agreement shall be sent
      by
      registered or certified mail, return receipt requested, or by hand delivery
      with
      receipt acknowledged, or by Express Mail service offered by the United States
      Post Office to the addresses set forth in the beginning of this Agreement or
      such other address as the parties hereto may designate.

     

    
      	
              11.

            	
              SEVERABILITY.

            

    

     

    11.1 If
      any
      provision of this Agreement or the application thereof to any person or
      circumstance shall be determined to be invalid or unenforceable, the remaining
      provisions of this Agreement or the application of such provision to persons
      of
      circumstances other than those to which it is held invalid or unenforceable
      shall not be affected thereby and shall be valid and enforceable to the fullest
      extent permitted by law.

     

    
      	
              12.

            	
              EXECUTION
                IN SEVERAL COUNTERPARTS; ENTIRE
                AGREEMENT.

            

    

     

    12.1 This
      Agreement may be executed in several counterparts or by separate instruments,
      all of such counterparts and instruments shall constitute one agreement, binding
      on all of the parties hereto.

     

    12.2 This
      Agreement constitutes the entire agreement between the parties hereto with
      respect to the subject matter hereof and supersedes all prior agreements and
      understandings, written or oral, of the parties in connection
      therewith.

     

    IN
      WITNESS WHEREOF, the undersigned parties have executed this Agreement upon
      proper legal authority as of the 1st
      day of
      April, 2008.

     

    
      	 	 	 
	 	PHILLIPS
              NIZER
              LLP
	 
 	 
 	 
 
	 	By:  	/s/ Elliot H. Lutzker
	 	
              
Elliot
              H. Lutzker, Partner

    

     

    
      	 	 	 
	 	
              SEGUSO
                HOLDINGS, INC., a New York 

              corporation

            
	 
 	 
 	 
 
	 	By:  	/s/
              Robert Seguso
	 	
              
Robert
              SegusoWORLD
      AM, INC.

    STOCK
      OPTION PLAN

    

    1.
      GENERAL PROVISIONS.

    

    1.1 Purpose.

    

    The
      World
      Am, Inc. Stock Option Plan (“Plan”) is intended to allow designated directors,
      officers and employees (all of whom are sometimes collectively referred to
      herein as “Designees”) of World Am, Inc., a Nevada corporation (“World Am”), and
      its Subsidiaries (as that term is defined below) which it may have from time
      to
      time (World Am and such Subsidiaries are referred to herein as the “Company”),
      to receive certain options (“Stock Options”) to purchase World Am’s
      common
      stock, one hundredth of one cent ($0.0001) par value (“Common Stock”). As used
      in this Plan, the term “Subsidiary” shall mean each corporation which is a
“subsidiary corporation” of World Am within the meaning of Section 424(f) of the
      Internal Revenue Code of 1986, as amended (“Code”). The purpose of this Plan is
      to provide Designees with equity-based compensation incentives to make
      significant and extraordinary contributions to the long-term performance and
      growth of the Company, and to attract and retain employees and directors of
      exceptional ability.

    

    1.2 Administration.

    

    1.2.1 The
      Plan
      shall be administered by one or more members of the Board of Directors (“Board”)
      of World Am (“Committee”). The Committee shall select one of its members as
      Chairman and shall act by vote of a majority of a quorum, or by unanimous
      written consent. A majority of its members shall constitute a quorum. The
      Committee shall be governed by the provisions of World Am’s Bylaws and of Nevada
      law applicable to the Board.

    

    1.2.2 The
      Committee shall have full and complete authority, in its discretion, but subject
      to the express provisions of the Plan: to approve the Designees nominated by
      the
      management of the Company to be granted Stock Options; to determine the number
      of Stock Options to be granted to an Designees; to determine the time or times
      at which Stock Options shall be granted; to establish the terms and conditions
      upon which Stock Options may be exercised; to remove or adjust any restrictions
      and conditions upon Stock Options; to specify, at the time of grant, provisions
      relating to exercisability of Stock Options and to accelerate or otherwise
      modify the exercisability of any Stock Options; and to adopt such rules and
      regulations and to make all other determinations deemed necessary or desirable
      for the administration of the Plan. All interpretations and constructions of
      the
      Plan by the Committee, and all of its actions hereunder, shall be binding and
      conclusive on all persons for all purposes.

    

    1.2.3 The
      Company hereby agrees to indemnify and hold harmless each Committee member
      and
      each Designee of the Company, and the estate and heirs of such Committee member
      or Designee, against all claims, liabilities, expenses, penalties, damages
      or
      other pecuniary losses, including legal fees, which such Committee member or
      Designee, his or her estate or heirs may suffer as a result of his or her
      responsibilities, obligations or duties in connection with the Plan, to the
      extent that insurance, if any, does not cover the payment of such items. No
      member of the Committee or the Board shall be liable for any action or
      determination made in good faith with respect to the Plan or any Stock Option
      granted pursuant to the Plan.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    1.3 Eligibility
      and Participation.

    

    Designees
      eligible under the Plan shall be approved by the Committee from those Designees
      who, in the opinion of the management of the Company, are in positions that
      enable them to make significant and extraordinary contributions to the long-term
      performance and growth of the Company. In selecting Designees to whom Stock
      Options may be granted, consideration shall be given to factors such as
      employment position, duties and responsibilities, ability, productivity, length
      of service, morale, interest in the Company and recommendations of
      supervisors.

    

    1.4
      Shares
      Subject to the Plan.

    

    The
      maximum number of shares of Common Stock that may be issued pursuant to the
      Plan
      shall be Forty-Five Million (45,000,000) subject to adjustment pursuant to
      the
      provisions of paragraph 2.4.1. If shares of Common Stock issued under the Plan
      are reacquired by the Company due to a forfeiture or for any other reason,
      such
      shares shall be cancelled and thereafter shall again be available for purposes
      of the Plan. If a Stock Option expires, terminates or is cancelled for any
      reason without having been exercised in full, the shares of Common Stock not
      purchased thereunder shall again be available for purposes of the
      Plan.

    

    2.
      PROVISIONS RELATING TO STOCK OPTIONS.

    

    2.1 Grants
      of Stock Options.

    

    The
      Committee may grant Stock Options in such amounts, at such times, and to such
      Designees nominated by the management of the Company as the Committee, in its
      discretion, may determine. The Committee shall grant Stock Options which do
      not
      constitute Incentive Stock Options, as defined in Section 422 of the Code,
      and
      any such Stock Options shall be designated “Non-Statutory Stock Options” by the
      Committee on the date of grant. Each Stock Option shall be evidenced by a
      written agreement (“Option Agreement”) in a form approved by the Committee,
      which shall be executed on behalf of the Company and by the Designee to whom
      the
      Stock Option is granted, and which shall be subject to the terms and conditions
      of this Plan. In the discretion of the Committee, Stock Options may include
      provisions (which need not be uniform), authorized by the Committee in its
      discretion, that accelerate a Designees’ rights to exercise Stock Options
      following a “Change in Control,” as such term is defined in paragraph 3.1
      hereof. The holder of a Stock Option shall not be entitled to the privileges
      of
      stock ownership as to any shares of Common Stock not actually issued to such
      holder.

    

    2.2 Purchase
      Price.

    

    2.2.1 The
      purchase price (“Exercise Price”) of shares of Common Stock subject to each
      Stock Option (“Option Shares”) shall equal one-half cent ($0.005) per
      share.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    2.2.2 The
      Company from time to time by action of the Committee may decrease the Exercise
      Price by any amount for any period of time if the period is at least twenty
      (20)
      days, the decrease is irrevocable during the period and the Committee in its
      sole discretion shall have made a determination that such decrease would be
      in
      the best interest of the Company, which determination shall be conclusive.
      Whenever the Exercise Price is decreased pursuant to the preceding sentence,
      the
      Company shall mail to holders of record of the Stock Option a notice of the
      decrease at least fifteen (15) days prior to the date the decreased Exercise
      Price takes effect, and such notice shall state the decreased Exercise Price
      and
      the period it will be in effect.

    

    2.3 Option
      Period.

    

    The
      Stock
      Option period (“Term”) shall commence on the date of grant of the incentive
      Stock Option and shall be four (4) years or such shorter period as is determined
      by the Committee. 

     

    2.4 Exercise
      of Options.

    

    2.4.1 If
      the
      Designee has been employed (or in the case of an independent director, been
      in
      such a position) for a period of one (1) year from the date of the Stock Option,
      then the Designee shall have the right to purchase one quarter (1/4) of the
      total number of shares covered by the Stock Option, and thereafter one
      forty-eighth (1/48th) of the total number of shares covered by the Stock Option
      at the end of each full calendar month (the Company shall not recognize
      fractional months). If the Designee shall leave the Company prior to the
      expiration of the one (1) year period (“Cliff Vesting Period”), then the
      Designee shall not have the right to purchase any shares under the Stock Option.
      The Stock Option shall only be valid while the Designee remains with the
      Company. Upon a termination of his or her relationship with the Company, the
      Designee shall have a period of ninety (90) calendar days thereafter to purchase
      the amount of shares that are vested to date or they shall be forfeited.

    

    2.4.2 Each
      Stock Option may be exercised in whole or in part (but not as to fractional
      shares) by delivering a Notice of Exercise in the form prescribed by paragraph
      2.4.3, attention of the Corporate Secretary, at the principal office of the
      Company, together with payment of the Exercise Price. Payment may be made (i)
      in
      cash, (ii) by cashier’s or certified check, (iii) by surrender of previously
      owned shares of the Company’s Common Stock valued pursuant to paragraph 2.2 (if
      the Committee authorizes payment in stock in its discretion), (iv) by
      withholding from the Option Shares which would otherwise be issuable upon the
      exercise of the Stock Option that number of Option Shares equal to the exercise
      price of the Stock Option, if such withholding is authorized by the Committee
      in
      its discretion, (v) in the discretion of the Committee, by the delivery to
      the
      Company of the Designees’
      promissory
      note secured by the Option Shares, bearing interest at a rate sufficient to
      prevent the imputation of interest under Sections 483 or 1274 of the Code,
      and
      having such other terms and conditions as may be satisfactory to the Committee,
      or (vi) cashless exercise program as established by World Am (in such case,
      the
      Company shall to pay the sales commission on the exercise and sale of each
      Option Share).

    

    2.4.3 Exercise
      of each Stock Option is conditioned upon the agreement of the Designee to the
      terms and conditions of this Plan and of such Stock Option as evidenced by
      the
      Designees’ execution and delivery of a Notice and Agreement of Exercise in a
      form to be determined by the Committee in its discretion. Such Notice and
      Agreement of Exercise shall set forth the agreement of the Designee that: (a)
      no
      Option Shares shall be sold or otherwise distributed in violation of the
      Securities Act of 1933 (“Securities Act”) or any other applicable federal or
      state securities laws, (b) each Option Share certificate may be imprinted with
      legends reflecting any applicable federal and state securities law restrictions
      and conditions, (c) the Company may comply with said securities law restrictions
      and issue “stop transfer” instructions to its Transfer Agent and Registrar
      without liability, and (d) if the Designee is a Section 16 Reporting Person,
      the
      Designee shall furnish to the Company a copy of each Form 4 or Form 5 filed
      by
      said Designee and shall timely file all reports required under federal
      securities laws. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    2.4.4 The
      Company shall have no obligation to file any Registration Statement covering
      the
      issuance and resales of Option Shares. Options Shares shall be restricted stock,
      as defined under Rule 144. 

    

    2.4.5 Upon
      the
      exercise of any Stock Option, as set forth above, the Company shall instruct
      its
      transfer agent to issue stock certificates in the name of Designee (or his
      or
      her nominee) and in such denominations to be specified by Designee representing
      the number of shares of Common Stock issuable upon such exercise. It
      shall
      be the Company’s responsibility to take all necessary actions and to bear all
      such costs to issue the certificate of Common Stock as provided herein,
      including the responsibility and cost for delivery of an opinion letter to
      the
      transfer agent, if so required. The person in whose name the certificate of
      Common Stock is to be registered shall be treated as a shareholder of record
      on
      and after the exercise date. Upon surrender of any Stock Option that is to
      be
      converted in part, the Company shall issue to the Designee a new Stock Option
      equal to the unconverted amount, if so requested.

    

    2.5 Restrictions
      on Transfer.

    

    Each
      Stock Option granted under this Plan shall be transferable only by will or
      the
      laws of descent and distribution. The vested portion of a Stock Option so
      transferred shall be exercised within ninety (90) days after such transfer
      is
      completed. No interest of any Designee under the Plan shall be subject to
      attachment, execution, garnishment, sequestration, the laws of bankruptcy or
      any
      other legal or equitable process. Each Stock Option granted under this Plan
      shall be exercisable during an Designees’ lifetime only by such Designees or by
      such Designees’ legal representative.

     

    3. MISCELLANEOUS
      PROVISIONS.

    

    3.1 Adjustments
      Upon Change in Capitalization.

    

    3.1.1 In
      case
      the Company shall (i) pay a dividend on Common Stock in Common Stock or
      securities convertible into, exchangeable for or otherwise entitling a holder
      thereof to receive Common Stock, (ii) declare a dividend payable in cash on
      its
      Common Stock and at substantially the same time offer its shareholders a right
      to purchase new Common Stock (or securities convertible into, exchangeable
      for
      or other entitling a holder thereof to receive Common Stock) from the proceeds
      of such dividend (all Common Stock so issued shall be deemed to have been issued
      as a stock dividend), (iii) subdivide its outstanding shares of Common Stock
      into a greater number of shares of Common Stock, (iv) combine its outstanding
      shares of Common Stock into a smaller number of shares of Common Stock, or
      (v)
      issue by reclassification of its Common Stock any shares of Common Stock of
      the
      Company, the number of shares of Option Shares immediately prior thereto shall
      be adjusted so that the Designee shall be entitled to receive after the
      happening of any of the events described above that number and kind of shares
      as
      the holders would have received had such Stock Option been converted immediately
      prior to the happening of such event or any record date with respect thereto.
      Any adjustment made pursuant to this subdivision shall become effective
      immediately after the close of business on the record date in the case of a
      stock dividend and shall become effective immediately after the close of
      business on the effective date in the case of a stock split, subdivision,
      combination or reclassification.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    3.1.2 In
      case
      the Company shall distribute, without receiving consideration therefor, to
      all
      holders of its Common Stock evidences of its indebtedness or assets, then in
      such case, the number of Option Shares shall be determined by multiplying the
      number of Option Shares by a fraction, of which the numerator shall be the
      closing bid price per share of Common Stock on the record date for such
      distribution, and of which the denominator shall be the closing bid price of
      the
      Common Stock less the then fair value (as determined by the Committee, whose
      determination shall be conclusive) of the portion of the assets or evidences
      of
      indebtedness so distributed per share of Common Stock. Such adjustment shall
      be
      made whenever any such distribution is made and shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such distribution.

    

    3.1.3 Any
      adjustment in the number of shares of Common Stock issuable hereunder otherwise
      required to be made shall not have to be adjusted if such adjustment would
      not
      require an increase or decrease in one percent (1%) or more in the number of
      shares of Option Shares.

    

    3.1.4 Whenever
      the number of shares of Common Stock issuable upon the exercise of the Stock
      Option is adjusted, as herein provided the Exercise Price shall be adjusted
      (to
      the nearest cent) by multiplying such Exercise Price immediately prior to such
      adjustment by a fraction, of which the numerator shall be the number of shares
      of Common Stock issuable upon the exercise of each share of the Stock Option
      immediately prior to such adjustment, and of which the denominator shall be
      the
      number of shares of Common Stock issuable immediately thereafter.

    

    3.1.5  In
      the
      case of any (i) consolidation or merger of the Company into any entity (other
      than a consolidation or merger that does not result in any reclassification,
      exercise, exchange or cancellation of outstanding shares of Common Stock of
      the
      Company), (ii) sale, transfer, lease or conveyance of all or substantially
      all
      of the assets of the Company as an entirety or substantially as an entirety,
      or
      (iii) reclassification, capital reorganization or change of the Common Stock
      (other than solely a change in par value, or from par value to no par value),
      in
      each case as a result of which shares of Common Stock shall be converted into
      the right to receive stock, securities or other property (including cash or
      any
      combination thereof), the Stock Option held by the Designee shall immediately
      fully vest, assuming such holder of Common Stock of the Company (a) is not
      an
      entity with which the Company consolidated or into which the Company merged
      or
      which merged into the Company or to which such sale or transfer was made, as
      the
      case may be (“constituent entity”), or an affiliate of a constituent entity, and
      (b) failed to exercise his or her rights of election, if any, as to the kind
      or
      amount of securities, cash and other property receivable upon such
      consolidation, merger, sale or transfer. If necessary, appropriate adjustment
      shall be made in the application of the provision set forth herein with respect
      to the rights and interests thereafter of the Designee, to the end that the
      provisions set forth herein shall thereafter correspondingly be made applicable,
      as nearly as may reasonably be, in relation to any shares of stock or other
      securities or property thereafter deliverable on the exercise of the Stock
      Option. The above provisions shall similarly apply to successive consolidations,
      mergers, sales, transfers, capital reorganizations and reclassifications. The
      Company shall not effect any such consolidation, merger, sale or transfer unless
      prior to or simultaneously with the consummation thereof the successor company
      or entity (if other than the Company) resulting from such consolidation, merger,
      sale or transfer assumes, by written instrument, the obligation to deliver
      to
      the Designee such shares of stock, securities or assets as, in accordance with
      the foregoing provision, such holder may be entitled to receive under this
      section.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    3.2 Withholding
      Taxes.

    

    The
      Company shall have the right at the time of exercise of any Stock Option to
      make
      adequate provision for any federal, state, local or foreign taxes which it
      believes are or may be required by law to be withheld with respect to such
      exercise (“Tax Liability”), to ensure the payment of any such Tax Liability. The
      Company may provide for the payment of any Tax Liability by any of the following
      means or a combination of such means, as determined by the Committee in its
      sole
      and absolute discretion in the particular case: (i) by requiring the Designee
      to
      tender a cash payment to the Company, (ii) by withholding from the Designees’
salary or other compensation, (iii) by withholding from the Option Shares which
      would otherwise be issuable upon exercise of the Stock Option that number of
      Option Shares having an aggregate fair market value (determined in the manner
      prescribed by paragraph 2.2) as of the date the withholding tax obligation
      arises in an amount which is equal to the Designees’ Tax Liability or (iv) by
      any other method deemed appropriate by the Committee. Satisfaction of the Tax
      Liability of a Section 16 Reporting Person may be made by the method of payment
      specified in clause (iii) above only if the following two conditions are
      satisfied:

    

    (a) the
      withholding of Option Shares and the exercise of the related Stock Option occur
      at least twelve (12) months and one day following the date of grant of such
      Stock Option; and

    

    (b) the
      withholding of Option Shares is made either (i) pursuant to an irrevocable
      election (“Withholding Election”) made by such Designee at least six (6) months
      in advance of the withholding of Options Shares, or (ii) on a day within a
      ten
      (10) day “window period” beginning on the third business day following the date
      of release of the Company’s quarterly or annual summary statement of sales and
      earnings.

    

    Anything
      herein to the contrary notwithstanding, a Withholding Election may be
      disapproved by the Committee at any time.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.3 Relationship
      to Other Benefit Plans.

    

    Stock
      Options granted hereunder shall not be deemed to be salary or other compensation
      to any Designee for purposes of any pension, thrift, profit-sharing, stock
      purchase or any other benefit plan now maintained or hereafter adopted by the
      Company.

    

    3.4 Amendments
      and Termination.

    

    The
      Board
      of Directors may at any time suspend, amend or terminate this Plan.

    

    3.5 Successors
      in Interest.

    

    The
      provisions of this Plan and the actions of the Committee shall be binding upon
      all heirs, successors and assigns of the Company and of Designees.

    

    3.6 Other
      Documents.

    

    All
      documents prepared, executed or delivered in connection with this Plan
      (including, without limitation, Option Agreements and Incentive Agreements)
      shall be, in substance and form, as established and modified by the Committee;
      provided, however, that all such documents shall be subject in every respect
      to
      the provisions of this Plan, and in the event of any conflict between the terms
      of any such document and this Plan, the provisions of this Plan shall prevail.
      

    

    3.7 No
      Obligation to Continue Employment.

    

    This
      Plan
      and grants hereunder shall not impose any obligation on the Company to continue
      to employ or have a relationship with any Designee covered by this Plan.
      Moreover, no provision of this Plan or any document executed or delivered
      pursuant to this Plan shall be deemed modified in any way by any employment
      or
      other contract between a Designee (or other Designees) and the
      Company.

    

    3.8 Misconduct
      of a Designee.

    

    Notwithstanding
      any other provision of this Plan, if a Designee commits fraud or dishonesty
      toward the Company or wrongfully uses or discloses any trade secret,
      confidential data or other information proprietary to the Company, or
      intentionally takes any other action materially inimical to the best interests
      of the Company, as determined by the Committee, in its sole and absolute
      discretion, such Designee shall forfeit all rights and benefits under this
      Plan.

    

    3.9 Term
      of Plan.

    

    This
      Plan
      was adopted by the Board effective on January 2, 2007. No Stock Options granted
      under this Plan may be exercised after January 2, 2017.

    
      
        
        

      

      
        7

        
          

        

      

       

    

    3.10 Governing
      Law.

     

    This
      Plan
      shall be construed in accordance with, and governed by, the laws of the State
      of
      Nevada.

    

    3.11 Approval.

    

    No
      Stock
      Option shall be exercisable unless and until the Directors of the Company have
      approved this Plan and all other legal requirements have been fully complied
      with. 

    

    3.12 Assumption
      Agreements.

    

    The
      Company shall require each successor, (direct or indirect, whether by purchase,
      merger, consolidation or otherwise), to all or substantially all of the business
      or assets of the Company, prior to the consummation of each such transaction,
      to
      assume and agree to perform the terms and provisions remaining to be performed
      by the Company under each Stock Option and to preserve the benefits to the
      Designees thereunder. Such assumption and agreement shall be set forth in a
      written agreement in form and substance satisfactory to the Committee (an
“Assumption Agreement”), and shall include such adjustments, if any, in the
      application of the provisions of the Stock Options and such additional
      provisions, if any, as the Committee shall require and approve, in order to
      preserve such benefits to the Designees. Without limiting the generality of
      the
      foregoing, the Committee may require an Assumption Agreement to include
      satisfactory undertakings by a successor:

    

    (a) to
      provide liquidity to the Designees on the exercise of Stock
      Options;

    

    (b) to
      require any future successor to enter into an Assumption Agreement;
      and

    

    (c) to
      take
      or refrain from taking such other actions as the Committee may require and
      approve, in its discretion.

    

    3.13 Compliance
      With Rule 16b-3.

    

    Transactions
      under the Plan are intended to comply with all applicable conditions of Rule
      16b-3. To the extent that any provision of the Plan or action by the Committee
      fails to so comply, it shall be deemed null and void, to the extent permitted
      by
      law and deemed advisable by the Committee.

    

    IN
      WITNESS WHEREOF, this Plan has been executed effective as of the 2nd day of
      January, 2007.

    

    World
      Am, Inc.

    

    

    By:
      ______________________________
      

    Robert
      A.
      Hovee, Chief Executive Officer

     

    
      
        
        

      

      
        8

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