Document:

ex10_2.htm

    
      

    

    Exhibit
10.2

    

    AMENDMENT
NO.  4 TO THE

    FIVE
YEAR REVOLVING CREDIT AGREEMENT

    

    Dated
as of May 7, 2008

     

    

    AMENDMENT NO.  4 TO THE
FIVE YEAR REVOLVING CREDIT AGREEMENT (this “Fourth
Amendment”), among KBR HOLDINGS, LLC,
a Delaware limited liability company (the “Borrower”), the
banks, financial institutions and other institutional lenders parties to the
Credit Agreement referred to below (collectively, the “Banks”), and
Citibank, N.A., as paying agent (the “Agent”) for the
Banks.

    

     

    PRELIMINARY
STATEMENTS

     

    (1)   The
Borrower, the Banks and the Agent have entered into a Five Year Revolving Credit
Agreement, dated as of December 16, 2005 (as amended, amended and restated,
supplemented or otherwise modified through the date hereof, the “Credit
Agreement”).  Capitalized terms not otherwise defined in this
Fourth Amendment have the same meanings as specified in the Credit
Agreement.

     

    (2)   The
Borrower and the Required Banks have agreed to amend the Credit Agreement as
hereinafter set forth.

     

    SECTION
1.  Amendments to Credit
Agreement.  The Credit Agreement is, effective as of the date
hereof and subject to the satisfaction of the conditions precedent set forth in
Section 2 hereof, hereby amended by replacing the amount “$50,000,000” in
Section 2.19 (a) thereof with the amount “$25,000,000” .

    

    SECTION
2.  Conditions of
Effectiveness.  This Fourth Amendment shall become effective as
of the date first above written when, and only when, the Agent shall have
received counterparts of this Fourth Amendment executed by the Borrower and the
Required Banks or, as to any of the Banks, advice satisfactory to the Agent that
such Bank has executed this Fourth Amendment and the consent attached hereto
executed by each Relevant Party (other than the Borrower).  This
Fourth Amendment is subject to the provisions of Section 8.01 of the Credit
Agreement.

     

    SECTION
3.  Representations and
Warranties of the Borrower.  The Borrower represents and
warrants as follows:

     

    (a)           the
representations and warranties contained in each Loan Document are correct on
and as of the date hereof (except (i) those representations and warranties
contained in (A) Section 4.01(i) of the Credit Agreement to the extent such
matters are subject to, and covered by, (x) the Indemnity Agreement and (y) the
Disclosed Litigation, and (B) Section 4.01(f) of the Credit Agreement and (ii)
those other representations and warranties that expressly relate solely to a
specific earlier date, which shall remain correct as of such earlier date) after
giving effect to this Fourth Amendment, as though made on and as of the date
hereof; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           no
event has occurred and is continuing, after giving effect to this Fourth
Amendment, which constitutes a Default or an Event of Default.

     

    SECTION
5.  Reference to and Effect on
the Loan Document.

     

    (a)           On
and after the effectiveness of this Fourth Amendment, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like
import referring to the Credit Agreement, and each reference in the Notes and
each of the other Loan Documents to “the Credit Agreement”, “thereunder”,
“thereof” or words of like import referring to the Credit Agreement, shall mean
and be a reference to the Credit Agreement, as amended by this Fourth
Amendment.

     

    (b)           The
Credit Agreement and each of the other Loan Documents, as specifically amended
by this Fourth Amendment, are and shall continue to be in full force and effect
and are hereby in all respects ratified and confirmed.

     

    (c)           The
execution, delivery and effectiveness of this Fourth Amendment shall not, except
as expressly provided herein, operate as a waiver of any right, power or remedy
of any Bank or the Agent under any of the Loan Documents, nor constitute a
waiver of any provision of any of the Loan Documents.

     

    SECTION
6.  Costs
and Expenses.  The Borrower agrees to pay on demand all costs
and expenses of the Agent in connection with the preparation, execution,
delivery and administration, modification and amendment of this Fourth Amendment
and the other instruments and documents to be delivered hereunder (including,
without limitation, the reasonable fees and expenses of counsel for the Agent)
in accordance with the terms of Section 8.04 of the Credit
Agreement.

     

    SECTION
7.  Execution in
Counterparts.  This Fourth Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute but one and the same
agreement.  Delivery of an executed counterpart of a signature page to
this Fourth Amendment by telecopier shall be effective as delivery of a manually
executed counterpart of this Fourth Amendment.

     

    SECTION
8.  Governing
Law.  This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

     

    [signature
page follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

     

    
      	 
      	
              KBR
      HOLDINGS, LLC

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By

            	 
      
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              CITIBANK,
      N.A.,

            
	 
      	
              as
      Paying Agent and as Bank

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By

            	 
      
	 
      	 
      	
              Title:

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              ABU
      DHABI INTERNATIONAL BANK INC.

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              AUSTRALIA
      AND NEW ZEALAND BANKING GROUP LIMITED

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              CITIBANK,
      N.A.

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              CREDIT
      SUISSE, CAYMAN ISLANDS BRANCH

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              HSBC
      BANK (USA), NATIONAL ASSOCIATION

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              ING
      BANK N.V.

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              JPMORGAN
      CHASE BANK, N.A.

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              LEHMAN
      COMMERCIAL PAPER INC.

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              LLOYDS
      TSB BANK PLC

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              MERRILL
      LYNCH BANK USA

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              MIZUHO
      CORPORATE BANK, LTD.

            
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              NATIONAL
      BANK OF KUWAIT, S.A.K.

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              RAYMOND
      JAMES BANK, FSB

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              STANDARD
      CHARTERED BANK

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              STATE
      STREET BANK AND TRUST COMPANY

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              SUMITOMO
      MITSUI BANKING CORPORATION

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              THE
      BANK OF NOVA SCOTIA

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              THE
      BANK OF TOKYO-MITSUBISHI UFJ, LTD. – HOUSTON AGENCY

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              THE
      ROYAL BANK OF SCOTLAND PLC

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              UBS
      LOAN FINANCE LLC

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 
      	
              WACHOVIA
      BANK, NATIONAL ASSOCIATION

            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	 
      	
              Name:

            	 
	 
      	 
      	
              Title:

            	 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CONSENT

     

    Dated as
of May 7, 2008

     

    

    The
undersigned, one of the Relevant Parties referred to in the Credit Agreement
referred to in the foregoing Fourth Amendment, hereby consents to such Fourth
Amendment and hereby confirms and agrees that notwithstanding the effectiveness
of such Fourth Amendment, each Loan Document to which it is a party is, and
shall continue to be, in full force and effect and is hereby ratified and
confirmed in all respects, except that, on and after the effectiveness of such
Fourth Amendment, each reference in each Loan Document to the “Credit
Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a
reference to the Credit Agreement, as amended by such Fourth Amendment
..

     

    
      	 
      	
              KBR,
      INC.

            
	 
      	
              KELLOGG
      BROWN & ROOT LLC (fka KELLOGG BROWN & ROOT,
  INC.)

            
	 
      	
              KELLOGG
      BROWN & ROOT SERVICES, INC.

            
	 
      	
              KELLOGG
      BROWN & ROOT

            
	 
      	
              INTERNATIONAL,
      INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:Unassociated Document

    WORLD
      AM, INC.

    2008
      NON-QUALIFIED COMPANY

    STOCK
      GRANT AND OPTION PLAN

     

    1. PURPOSE:
      This
      2008 Non-Qualified Company Stock Grant and Option Plan (the “Plan”) is intended
      to serve as an incentive to and to encourage stock ownership by certain
      directors, officers, employees of and certain persons rendering service to
      World
      Am, Inc., a Nevada corporation (the “Corporation”), so that they may acquire or
      increase their proprietary interest in the success of the Corporation, and
      to
      encourage them to remain in the Corporation’s service.

     

    2. ADMINISTRATION:
      The
      Plan shall be administered by a committee appointed by the Corporation’s Board
      of Directors (the “Committee”). The Committee shall consist of not less than
      three (3) members who shall be appointed by, and serve at the pleasure of,
      the
      Corporation’s Board of Directors. The Board of Directors may from time to time
      remove members from, or add members to, the Committee. Vacancies on the
      Committee, however caused, shall be filled only by the Board of Directors.
      The
      Committee shall select one of its members as Chairman, and shall hold meetings
      at such times and places as it may determine. Acts by a majority of the
      Committee in a meeting at which a quorum is present and acts approved in writing
      by a majority of the members of the Committee shall be the valid acts of the
      Committee. No member of the Committee shall vote on any matter concerning his
      or
      her own participation in the Plan, except that the Board of Directors as a
      whole
      may act on options granted to directors. If no Committee has been appointed,
      the
      entire Board shall constitute the Committee.

     

    The
      Committee shall be authorized to grant stock and/or options under the Plan
      to
      such directors, officers, employees of and other persons rendering service
      to
      the Corporation or any parent or subsidiary corporation of the Corporation,
      as
      defined for purposes of Internal Revenue Code Section 422A (“Parent or
      Subsidiary”), at such times and in such amounts as it may decide.

     

    The
      interpretation and construction by the Committee of any provisions of the Plan
      or of any option granted under it shall be final unless otherwise determined
      by
      the Board of Directors. No member of the Committee or Board of Directors shall
      be liable for any action or determination made in good faith with respect to
      the
      Plan or any option granted under it.

     

    3. ELIGIBILITY

     

    3.1. General:
      Any
      person who performs services of special importance to the Corporation, or any
      Parent or Subsidiary thereof, relating to the Corporation’s management,
      operation or development shall be eligible to receive stock or options under
      the
      Plan. The selection of stock and/or options received shall be within the sole
      and absolute discretion of the Committee, or the Board of
      Directors.

     

    3.2. Termination
      of Eligibility:
      Any
      option granted hereunder shall expire if, for any reason other than his or
      her
      death, the optionee (i) ceases to be employed by the Corporation or a Parent
      or
      Subsidiary thereof; (ii) is no longer a member of the Corporation’s Board of
      Directors; or (iii) no longer performs services for the Corporation as an
      independent contractor. The expiration will take effect at the earliest of
      the
      following times: three (3) months from the date of the occurrence causing
      termination of eligibility (twelve (12) months if the optionee’s eligibility
      ceases because of his or her disability), or upon the date the option expires
      by
      its terms. During such three-month period, the option may be exercised in
      accordance with its terms, but only in respect to the number of shares for
      which
      the right to exercise has accrued on the date of termination of employment,
      or
      status as a director or independent contractor. The Committee shall decide
      whether an authorized leave of absence or absence for military or governmental
      service, or absence for any other reason, shall constitute termination of
      eligibility for purposes of this Section. This determination shall be subject
      to
      review by the Board of Directors.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    3.3. Death
      of Optionee and Transfer of Option:
      If the
      optionee dies while eligible to participate in the Plan, or within three (3)
      months after the termination of his or her eligibility, and shall not have
      fully
      exercised the option, the option may be exercised at any time within twelve
      (12)
      months after the optionee’s death by the optionee’s executors or administrators
      or by any person or persons who acquired the option directly from the optionee
      by bequest or inheritance. However, no option shall be exercisable after it
      expires; and options may be exercised only to the extent that the optionee’s
      right to exercise the option had accrued at the time of his or her death and
      had
      not been previously exercised.

     

    No
      option
      shall be transferable by the optionee otherwise than by will or the laws of
      intestate succession.

     

    4. IDENTIFICATION
      OF STOCK:
      The
      stock subject to grant and the options shall be shares of the Corporation’s
      authorized but unissued or acquired or reacquired Common Stock, par value $0.001
      (the “Stock”). The aggregate number of shares granted under the Plan, or subject
      to outstanding options granted under the Plan, shall not exceed One Hundred
      Twenty Million (120,000,000) shares of Stock (subject to adjustment as provided
      in Section 5.6). If any option granted hereunder shall expire or terminate
      for
      any reason without having been exercised in full, the unpurchased shares subject
      thereto shall again be available for purposes of this Plan.

     

    5. TERMS
      AND CONDITIONS OF OPTIONS:
      Any
      option granted pursuant to the Plan shall be evidenced by an agreement in such
      form as the Committee shall from time to time determine, which agreement shall
      comply with and be subject to the following terms and conditions:

     

    5.1. Number
      of Shares:
      Each
      option shall state the number of shares to which it pertains.

     

    5.2. Option
      Exercise Price:
      Each
      option shall state the option price, which shall be determined at the
      Committee’s discretion. Stock options must have an exercise price of at least
      85% of the fair market value of the Stock on the date the stock option is
      granted. Under the Plan, fair market value of the Stock for a particular date
      is
      generally determined by the Committee or the Board of Directors.

     

    5.3. Method
      of Exercise:
      An
      option shall be exercised by written notice to the Corporation stating the
      number of shares with respect to which the option is being exercised and
      designating a time for the delivery thereof, which shall be not more than
      fifteen (15) days after notice is given unless another date was mutually agreed
      upon. At the time specified in the notice, the Corporation shall deliver to
      the
      optionee at the Corporation’s principal office, or other appropriate place the
      Committee determines, a certificate(s) for such shares of previously authorized
      but unissued shares or acquired or reacquired shares of Stock as the Corporation
      may elect. Notwithstanding the foregoing, the Corporation may postpone delivery
      of any certificate(s) after notice of exercise for any reasonable period
      required to comply with any applicable listing requirements of any national
      or
      other securities exchange. In the event an option shall be exercisable by any
      person other than the optionee, the required notice under this section shall
      be
      accompanied by appropriate proof of such person’s right to exercise the
      option.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    5.4. Medium
      and Time Payment:
      The
      option price shall be payable in full upon the exercise of the option by
      certified or bank cashier’s check, the promissory note of the optionee (if
      allowable under applicable securities laws), or any equivalent form of payment
      acceptable to the Corporation.

     

    5.5. Term
      of Option:
      The
      term of an option granted hereunder shall be determined by the Committee at
      the
      time of grant, but shall not exceed ten (10) years from the day of the grant.
      In
      no event shall any option be exercisable after the expiration of its
      term.

     

    5.6. Adjustments
      Upon Changes in Capitalization:
      Subject
      to any required shareholder action, the number of shares of stock covered by
      each outstanding option and the price per share in each such option shall be
      proportionately adjusted for any increase or decrease in the number of issued
      shares of Stock of the Corporation resulting from: (i) a subdivision or
      consolidation of shares; (ii) the payment of a stock dividend (but only on
      the
      Stock); (iii) any other increase or decrease in the number of such shares
      effected without receipt of consideration by the Corporation; (iv) or, as to
      Stock issued other than pursuant to a stock option granted to a director,
      officer, employee or a person rendering services as an independent contractor
      to
      the Corporation or any Parent or Subsidiary, any increase or decrease in the
      number of shares made for per-share consideration less than the option price
      of
      such option. Any fraction of a share subject to option that would otherwise
      result from an adjustment pursuant to this subparagraph shall be rounded
      downward to the next full number of shares without other compensation or
      consideration to the holder of the option.

     

    Subject
      to any required shareholder action, if the Corporation shall be the surviving
      corporation in any merger or consolidation, each outstanding option shall
      pertain and apply to the securities to which a holder of the number of shares
      of
      Stock subject to the option would have been entitled. The Corporation’s Board of
      Directors may grant each optionee the right to exercise his or her option in
      whole or in part immediately prior to the Corporation’s dissolution or
      liquidation, or merger or consolidation in which the corporation is not the
      surviving corporation. If the Corporation is consolidated with or merged into
      any other corporation, or if the Corporation sells or transfers all or
      substantially all of its assets, or if any other similar event affecting shares
      of Stock of the Corporation should occur, and if the exercisability of the
      options is not accelerated by the Board of Directors and the acquiring
      Corporation assumes the Corporation’s obligations under the options granted
      under this Plan, then each optionee shall be entitled thereafter to purchase
      shares of stock and other securities and property in the kind and amount, and
      at
      the price, which the optionee would have been entitled had his or her option
      been exercised prior to such event. The Corporation shall make lawful provision
      therefore as part of any such transaction.

     

    To
      the
      extent that the foregoing adjustments relate to stock or securities of the
      Corporation, they shall be made by the Committee, whose determinations shall
      be
      final, binding and conclusive.

     

    The
      grant
      of an option pursuant to the Plan shall not affect in any way the Corporation’s
      right or power to make adjustments, reclassifications, reorganizations or
      changes of its capital or business structure, or to merge or to consolidate
      or
      to dissolve, liquidate or sell, or transfer all or any part of its business
      or
      assets.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    Whenever
      the Corporation takes any action resulting in any adjustment provided for in
      this Section 5.6, the Corporation shall forthwith deliver notice of the action
      to optionee. The notice shall set forth the number of shares subject to this
      Option and the purchase price thereof resulting from the
      adjustment.

     

    5.7. Rights
      as a Shareholder:
      An
      optionee or a transferee of an option shall have no rights as a shareholder
      with
      respect to any shares underlying his or her option until the date the optionee
      is issued a certificate for such shares. No adjustment shall be made for
      dividends (ordinary or extraordinary, whether in cash, securities or other
      property) or distributions or other rights for which the record date is prior
      to
      the date such stock certificate is issued, except as provided in Section 5.6
      above.

     

    5.8. Modification,
      Extension and Renewal of Options:
      Subject
      to the terms and conditions and within the limitations of the Plan, the
      Committee may modify, extend or renew outstanding options granted under the
      Plan, or accept the surrender of outstanding options (to the extent not
      theretofore exercised) and authorize the granting of new options in substitution
      therefore (to the extent not theretofore exercised).

     

    5.9. Other
      Provisions:
      The
      option agreements authorized under the Plan shall contain such other provisions,
      including without limitation, restrictions upon the exercise of the option,
      as
      the Committee and the Board of Directors of the Corporation shall deem
      advisable. Thus, for example, the Committee and the Board of Directors may
      require that all or any portion of an option granted hereunder not be
      exercisable until a specified period of time has passed or some other event
      has
      occurred.

     

    6. TERM
      OF PLAN:
      Options
      may be granted pursuant to the Plan from time to time within a period of ten
      (10) years from the date the Plan is adopted by the Corporation’s Board of
      Directors or is approved by the Corporation’s shareholders, whichever occurs
      earlier. Termination of the Plan shall not affect any option previously
      granted.

     

    7. AMENDMENT
      OF THE PLAN:
      To the
      extent permitted by law and subject to any required approval by the
      Corporation’s shareholders, the Board of Directors may suspend or discontinue
      the Plan or revise or amend it in any way with respect to any shares not subject
      to options at that time.

     

    8. APPLICATION
      OF FUNDS:
      The
      proceeds received by the Corporation from the sale of Stock pursuant to options
      may be used for general corporate purposes.

     

    9. NO
      OBLIGATION TO EXERCISE OPTION:
      The
      granting of an option shall impose no obligation upon the optionee to exercise
      such option.

     

    10. SECURITIES
      LAWS COMPLIANCE:
      Notwithstanding anything contained herein, the Corporation shall not be
      obligated to grant any option under this Plan, or to sell or issue any share
      pursuant to any option agreement executed pursuant to the Plan, unless the
      grant
      or sale is effectively registered or exempt from registration under the
      Securities Act of 1933, as amended, and is qualified or exempt from
      qualification under any applicable state securities laws.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    As
      adopted by the Board of Directors on July 10, 2008.

     

    
      	 	 	 
	 	
              World
                Am, Inc. 

              a
                Nevada corporation

            
	 
 	 
 	 
 
	 	/s/
              Robert A. Hovee
	 	By:  	 Robert
              A.
              Hovee
	 	Its: 	Chief Executive
              Officer 

    

     

    
      
         

      

      
        5

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