Document:

fs1a2ex10xviii_chinacomm.htm

Exhibit 10.18

 

 

CHINA COMMERCIAL CREDIT, INC.

No. 1688, Yunli road, Tongli

Wujiang, Jiangsu Province

People’s Republic of China

(86-0512) 6396-0022

                                                                                         August 15, 2012

	
Re:

	
Director Offer Letter

Dear

China Commercial Credit, Inc., a Delaware corporation (the “Company”), is pleased to offer you a position as of member of its Board of Directors (the “Board”).  We believe your background and experience will be a significant asset to the Company and we look forward to your participation on the Board.  Should you choose to accept this position as a member of the Board, this letter agreement (the “Agreement”) shall constitute an agreement between you and the Company and contains all the terms and conditions relating to the services you agree to provide to the Company.

 

1.           Term.  This Agreement is effective as of the closing of the Company’s initial public offering. Your term as director shall continue subject to the provisions in Section 9 below or until your successor is duly elected and qualified.  The position shall be up for re-election each year at the annual shareholder’s meeting and upon re-election, the terms and provisions of this Agreement shall remain in full force and effect.

2.           Services.  You shall render services as a member of the Board and the Board’s committees set forth on Schedule A attached hereto (hereinafter your “Duties”). During the term of this Agreement, you shall attend and participate in such number of meetings of the Board and of the committee(s) of which you are a member as regularly or specially called. You may attend and participate at each such meeting, via teleconference, video conference or in person. You shall consult with the other members of the Board and committee(s) as necessary via telephone, electronic mail or other forms of correspondence.

 

3.           Compensation.  As compensation for your services to the Company, you will receive $20,000 in cash per year for serving on the Board. The cash compensation shall be paid to you quarterly in arrears as determined by the Company.

You shall be reimbursed for reasonable and approved expenses incurred by you in connection with the performance of your Duties

4.           D&O Insurance Policy. During the term under this Agreement, the Company shall include you as an insured under its officers and directors insurance policy, which the Company shall use its best effort to maintain at a minimum coverage of $3 million.

 

  

  

  

 

5.           No Assignment.  Because of the personal nature of the services to be rendered by you, this Agreement may not be assigned by you without the prior written consent of the Company.

6.           Confidential Information; Non-Disclosure.  In consideration of your access to certain Confidential Information (as defined below) of the Company, in connection with your business relationship with the Company, you hereby represent and agree as follows:

 

a.           Definition.  For purposes of this Agreement the term “Confidential Information” means:

 

i.           Any information which the Company possesses that has been created, discovered or developed by or for the Company, and which has or could have commercial value or utility in the business in which the Company is engaged; or

ii.           Any information which is related to the business of the Company and is generally not known by non-Company personnel.

iii.           Confidential Information includes, without limitation, trade secrets and any information concerning services provided by the Company, concepts, ideas, improvements, techniques, methods, research, data, know-how, software, formats, marketing plans, and analyses, business plans and analyses, strategies, forecasts, customer and supplier identities, characteristics and agreements.

b.           Exclusions.  Notwithstanding the foregoing, the term Confidential Information shall not include:

 

i.           Any information which becomes generally available to the public other than as a result of a breach of the confidentiality portions of this Agreement, or any other agreement requiring confidentiality between the Company and you;

ii.           Information received from a third party in rightful possession of such information who is not restricted from disclosing such information; and

iii.           Information known by you prior to receipt of such information from the Company, which prior knowledge can be documented.

c.           Documents. You agree that, without the express written consent of the Company, you will not remove from the Company's premises, any notes, formulas, programs, data, records, machines or any other documents or items which in any manner contain or constitute Confidential Information, nor will you make reproductions or copies of same.  You shall promptly return any such documents or items, along with any reproductions or copies, to the Company upon the earliest of Company's demand, termination of this Agreement, or your termination or Resignation, as defined in Section 9 herein.

d.           Confidentiality.  You agree that you will hold in trust and confidence all Confidential Information and will not disclose to others, directly or indirectly, any Confidential Information or anything relating to such information without the prior written consent of the Company, except as maybe necessary in the course of your business relationship with the Company.  You further agree that you will not use any Confidential Information without the prior written consent of the Company, except as may be necessary in the course of your business relationship with the Company, and that the provisions of this paragraph (d) shall survive termination of this Agreement.

 

  

  

  

 

e.           Ownership.  You agree that Company shall own all right, title and interest (including patent rights, copyrights, trade secret rights, mask work rights, trademark rights, and all other intellectual and industrial property rights of any sort throughout the world) relating to any and all inventions (whether or not patentable), works of authorship, mask works, designations, designs, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, by you during the term of this Agreement and that arise out of your Duties (collectively,  “Inventions”)  and you will promptly disclose and provide all Inventions to the Company. You agree to assist the Company, at its expense, to further evidence, record and perfect such assignments, and to perfect, obtain, maintain, enforce, and defend any rights assigned.

7.           Non-Competition. You agree and undertake that you will not, so long as you are a member of the Board and for a period of 12 months following termination of this Agreement for whatever reason, directly or indirectly as owner, partner, joint venturer, stockholder, employee, broker, agent principal, corporate officer, director, licensor or in any other capacity whatsoever, engage in, become financially interested in, be employed by, or have any connection with any business or venture that is engaged in any activities involving services or products which compete, directly or indirectly, with the services or products provided or proposed to be provided by the Company or its subsidiaries or affiliates; provided, however, that you may own securities of any public corporation which is engaged in such business but in an amount not to exceed at any one time, one percent of any class of stock or securities of such company, so long as you has no active role in the publicly owned company as director, employee, consultant or otherwise.

8.            Non-Solicitation.   So long as you are a member of the Board and for a period of 12 months thereafter, you shall not directly or indirectly solicit for employment any individual who was an employee of the Company during your tenure.

9.            Termination and Resignation.  Your membership on the Board may be terminated for any or no reason by a vote of the stockholders holding at least a majority of the shares of the Company’s issued and outstanding shares entitled to vote. Your membership on the Board or on a Board committee may be terminated for any or no reason by a majority of the Board at any time, if you have been declared incompetent by an order of a court of competent jurisdiction or convicted of a felony. You may also terminate your membership on the Board or on a committee for any or no reason by delivering your written notice of resignation to the Company (“Resignation”), and such Resignation shall be effective upon the time specified therein or, if no time is specified, upon receipt of the notice of resignation by the Company. Upon the effective date of the termination or Resignation, your right to compensation hereunder will terminate subject to the Company's obligations to pay you any compensation (including the vested portion of the Shares) that you have already earned and to reimburse you for approved expenses already incurred in connection with your performance of your Duties as of the effective date of such termination or Resignation.  Any Shares that have not vested as of the effective date of such termination or Resignation shall be forfeited and cancelled.

10.           Governing Law.  All questions with respect to the construction and/or enforcement of this Agreement, and the rights and obligations of the parties hereunder, shall be determined in accordance with the law of the State of New York applicable to agreements made and to be performed entirely in the State of New York.

 

  

  

  

 

11.           Entire Agreement; Amendment; Waiver; Counterparts.  This Agreement expresses the entire understanding with respect to the subject matter hereof and supersedes and terminates any prior oral or written agreements with respect to the subject matter hereof.  Any term of this Agreement may be amended and observance of any term of this Agreement may be waived only with the written consent of the parties hereto.  Waiver of any term or condition of this Agreement by any party shall not be construed as a waiver of any subsequent breach or failure of the same term or condition or waiver of any other term or condition of this Agreement.  The failure of any party at any time to require performance by any other party of any provision of this Agreement shall not affect the right of any such party to require future performance of such provision or any other provision of this Agreement.  This Agreement may be executed in separate counterparts each of which will be an original and all of which taken together will constitute one and the same agreement, and may be executed using facsimiles of signatures, and a facsimile of a signature shall be deemed to be the same, and equally enforceable, as an original of such signature.

12.       Indemnification.  The Company shall, to the maximum extent provided under applicable law, indemnify and hold you harmless from and against any expenses, including reasonable attorney’s fees, judgments, fines, settlements and other legally permissible amounts (“Losses”), incurred in connection with any proceeding arising out of, or related to, your performance of your Duties, other than any such Losses incurred as a result of your negligence or willful misconduct.  The Company shall advance to you any expenses, including reasonable attorneys’ fees and costs of settlement, incurred in defending any such proceeding to the maximum extent permitted by applicable law.  Such costs and expenses incurred by you in defense of any such proceeding shall be paid by the Company in advance of the final disposition of such proceeding promptly upon receipt by the Company of (a) written request for payment; (b) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment is being sought; and (c) an undertaking adequate under applicable law made by or on your behalf to repay the amounts so advanced if it shall ultimately be determined pursuant to any non-appealable judgment or settlement that you are not entitled to be indemnified by the Company.

13.       Not an Employment Agreement.   This Agreement is not an employment agreement, and shall not be construed or interpreted to create any right for you to continue employment with the Company.

14.       Acknowledgement.   You accept this Agreement subject to all the terms and provisions of this Agreement.  You agree to accept as binding, conclusive, and final all decisions or interpretations of the Board of Directors of the Company of any questions arising under this Agreement.

The Agreement has been executed and delivered by the undersigned and is made effective as of the date set first set forth above.

 

 

	 	Sincerely,	 
	 	 	 
	 	CHINA COMMERCIAL CREDIT, INC.	 
	 	 	 	 
	 	
By: 

	/s/ Huichun Qin	 
	 	 	Name: Huichun Qin	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 

 

AGREED AND ACCEPTED:

/s/ Jingeng Ling

Jingeng Ling

 

  

  

  

 

Schedule A

The director is offered to serve on the following Board committee(s):

 

	  	
Compensation Committee

	  	
Nominating and Governance CommitteeAMENDMENT AND EXCHANGE AGREEMENT

This Amendment
and Exchange Agreement (the “Agreement”), dated as of July 15, 2013, is by and between Worlds Inc., a Delaware
corporation with offices located at 11 Royal Road, Brookline, MA 02445 (the “Company”), and the holder identified
on the signature page hereto (“Holder”).

R E C I T A L S

A.On
March 20, 2013, the Company issued to the Holder (i) a senior secured convertible note, in the aggregate amount as described below
the Holder’s name on the signature page of the Holder (the “Series A Note”), which Series A Note
is convertible into shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”)
(as converted, collectively, the “Series A Conversion Shares”), in accordance with the terms of the Series
A Note, (ii) a senior secured convertible note, in the aggregate amount as described below the Holder’s name on the signature
page of the Holder (the “Series B Note”), which Series B Note is convertible into shares of Common Stock
(as converted, collectively, the “Series B Conversion Shares”), in accordance with the terms of the Series B
Note, (iii) a senior secured convertible note, in the aggregate amount as described below the Holder’s name on the signature
page of the Holder (the “Series C Note”, and together with the Series A Note and the Series B Note, the
“Notes”), which Series C Note is convertible into shares of Common Stock (as converted, collectively, the “Series
C Conversion Shares”, and together with the Series A Conversion Shares and the Series B Conversion Shares, the “Conversion
Shares”), in accordance with the terms of the Series C Note and (ii) a warrant (the “Warrant”) to
purchase such number of shares of Common Stock as described below the Holder’s name on the signature page of the Holder (the
“Warrant Shares”, and such aggregate number of Warrant Shares, the “Warrant Share Amount”),
in each case, pursuant to a Securities Purchase Agreement dated as of March 14, 2013 (the “Existing Securities Purchase
Agreement”) to the Holder and certain other investors signatory thereto (the Holder and such other investors collectively,
the “Investors”). Capitalized terms not defined herein shall have the meanings set forth in the Existing Securities
Purchase Agreement as amended hereby.

B.The
Company and the Holder desire to enter into this Agreement, pursuant to which, among other things (i) the Company shall exchange
the Series A Note and the Series B Note for such number of shares of Common Stock as described below the Holder’s name on
the signature page of the Holder (the “Exchange Shares”), (ii) the Company shall exchange the Warrant for a
new warrant to purchase the Warrant Share Amount of shares of Common Stock, in the form attached hereto as Exhibit A (the
“Exchange Warrant”), (iii) certain restrictive covenants of the Securities Purchase Agreement shall be removed
and (iv) the cash amount held in the Master Restricted Account (as defined in the Notes) attributable to the Notes of the Holder
shall be released to the Holder.

C.As
a closing condition to the transactions contemplated hereby, each of the Investors other than the Holder (the “Other Holders”)
are executing agreements identical to this Agreement (other than the expense reimbursement of Greenberg Traurig and the proportional
changes in the numbers reflecting the different (i) aggregate principal amount of senior secured convertible notes and related
warrants of the Company held by each Other Holder, (ii) the number of shares of Common Stock of each Other Holder to be delivered
to such Other Holder in exchange for such Series A senior secured convertible notes and Series B senior secured convertible notes
of such Other Holder, (iii) the number of shares of Common Stock issuable upon exercise of the warrants to purchase Common Stock
of each Other Holder and (iv) cash amount to be released to each Other Holder from the Master Restricted Account (the “Other
Agreements”, and together with this Agreement, the “Agreements”)).

D.The
Series A Notes and Series B Notes will be exchanged for the Exchange Shares and the Warrant will be exchanged for the Exchange
Warrant, in each case, in an exchange made in reliance upon the exemption from registration provided by Section 3(a)(9) of
the Securities Act.

    	(1)

    	 

    

 

A G R E E M E N T

1.              
Amendment; Exchange. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and
6 below, on the Closing Date (as defined below) the Holder shall, and the Company shall, pursuant to Section 3(a)(9) of the Securities
Act, exchange (a) the Series A Note and the Series B Note for the Exchange Shares and (b) the Warrant for the Exchange Warrant
(collectively, the “Exchange”). On or prior to the Closing (as defined below), the following transactions shall
occur:

1.1           
Delivery; Release. On the Closing Date, (a) the Company shall deliver the Exchange Shares and the Exchange Warrant
to the Holder, (b) all of the Holder’s rights under the Series A Note, the Series B Note and the Warrant shall be extinguished
and (c) the Collateral Agent (as defined in the Securities Purchase Agreement) shall hereby be instructed by the Company and the
Holder to release to the Holder such amount as described below the Holder’s name on the signature page of the Holder (the
“Release Amount”) from the Master Restricted Account. Notwithstanding the foregoing, the Holder shall deliver
or cause to be delivered to the Company (or its designee) the certificates evidencing the Series A Note, the Series B Note and
the Warrant within twenty (20) Business Days following the Closing (as defined below).

1.2           
Other Documents. The Company and the Holder shall execute and/or deliver such other documents and agreements as are
customary and reasonably necessary to effectuate the Amendment and the Exchange.

1.3           
No Additional Consideration. The parties acknowledge and agree that the Exchange Shares and the Exchange Warrant
shall be issued to the Holder in exchange for the Series A Note, Series B Note and Warrant, in each case, without the payment of
any additional consideration.

1.4           
Closing. Upon confirmation that the conditions to closing specified in this Agreement have been satisfied or duly
waived by the Holder or the Company, as applicable, the closing of the Exchange (the “Closing”) shall occur
on July 16, 2013 or such other date as is mutually acceptable to the Holder and the Company (the “Closing Date”).

2.              
AMENDMENTS TO TRANSACTION DOCUMENTS.

2.1           
Ratifications. Except as otherwise expressly provided herein, the Existing Securities Purchase Agreement and each
other Transaction Document, 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 Closing Date: (i) all references in the Existing Securities Purchase Agreement to “this
Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the
Existing Securities Purchase Agreement shall mean the Existing Securities Purchase Agreement as amended by this Agreement, and
(ii) all references in the other Transaction Documents, to the “Securities Purchase Agreement”, “thereto”,
“thereof”, “thereunder” or words of like import referring to the Securities Purchase Agreement shall mean
the Existing Securities Purchase Agreement as amended by this Agreement.

    	(2)

    	 

    

2.2           
Series C Note Acknowledgement. The parties hereto hereby acknowledge and agree that from and after the Closing Date,
the Series C Note shall be eligible to be converted into Series C Conversion Shares pursuant to Section 3(e)(i) of the Series C
Note at the Alternate Conversion Price (as defined in the Series C Note).

2.3           
Amendments to Transaction Documents; Waivers.

(a)       
On and after the Closing Date, each of the Transaction Documents are hereby amended as follows:

                                                                                   
(i)      The defined term “Series
A Conversion Shares” is hereby amended to include each of the “Exchange Shares” (as defined in the Amendment
and Exchange Agreements)”.

                                                                                 
(ii)      The defined term “Warrants”
is hereby amended to include each “Exchange Warrant” (as defined in the Amendment and Exchange Agreements)”.

                                                                               
(iii)      The defined term “Transaction
Documents” is hereby amended to include the Amendment and Exchange Agreements.

                                                                               
(iv)      The defined term “Amendment
and Exchange Agreements” shall mean “those certain Amendment and Exchange Agreements, dated as of July 15, 2013, each
by and between the Company and each Buyer”.

                                                                                 
(v)      Each of Sections 4(j), 4(k)
and 4(r) of the Securities Purchase Agreement are hereby amended and restated as “[Intentionally Omitted]”.

                                                                               
(vi)      The sentences in Section
4(n) of the Securities Purchase Agreement after the first sentence of such Section 4(n) are hereby deleted.

(b)       
On and after the Closing Date, the Holder hereby permanently and irrevocably waives the Company’s compliance with
Sections 13(b), 13(c), 13(e), 13(f), 13(g) and 13(m) of the Note of the Holder.

(c)       
 Holder agrees that the Company’s filing of proxy materials with the Securities and Exchange Commission and other
public disclosure of its intent to obtain stockholder authorization for a reverse split of its outstanding common stock at its
2013 Annual Meeting of Stockholders shall not be deemed a “Fundamental Transaction” as such termed is defined in the
Warrant.

3.              
Representations and Warranties.

3.1           
Holder Bring Down. The Holder hereby makes the representations and warranties as to itself only as set forth in Section
2 of the Securities Purchase Agreement (as amended hereby) as if such representations and warranties were made as of the date hereof
and set forth in their entirety in this Agreement, mutatis mutandis.

3.2           
Company Bring Down. The Company hereby makes the representations and warranties to the Holder as set forth in Section
3 of the Securities Purchase Agreement (as amended hereby) as if such representations and warranties were made as of the date hereof
and set forth in their entirety in this Amendment, mutatis mutandis.

    	(3)

    	 

    

4.              
Covenants.

4.1           
Reasonable Best Efforts. The Company shall use its reasonable best efforts to timely satisfy each of the conditions
to be satisfied by it as provided in Section 6 of this Agreement. The Holder shall use its reasonable best efforts to timely satisfy
each of the conditions to be satisfied by it as provided in Section 5 of this Agreement.

4.2           
Disclosure of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the first
(1st) Business Day following the date of this Agreement, the Company shall file a Current Report on Form 8-K describing all the
material terms of the transactions contemplated by the Agreements in the form required by the 1934 Act and attaching all the material
agreements (including, without limitation, this Agreement (and all schedules to this Agreement) and the form of the Exchanged Warrants)
(including all attachments, the “8-K Filing”). From and after the issuance of the 8-K Filing, the Company shall
have disclosed all material, non-public information (if any) delivered to any of the Buyers by the Company or any of its Subsidiaries,
or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Agreements.

4.3           
Fees. The Company shall reimburse Greenberg Traurig, LLP (counsel to the lead
Buyer), on demand, for all reasonable, documented costs and expenses incurred by it in connection with preparing and delivering
this Agreement (including, without limitation, all reasonable, documented legal fees and disbursements in connection therewith,
and due diligence in connection with the transactions contemplated thereby) provided, however, that the amount payable by the Company
to Greenberg Traurig, LLP shall not exceed $12,000 in the aggregate unless agreed to in writing by the Company (the “Lead
Investor Counsel Expenses”).

4.4           
Holding Period. For the purposes of Rule 144, the Company acknowledges that the holding period of (i) the Exchange
Shares may be tacked onto the holding period of the Series A Note and Series B Note and (ii) the Exchange Warrant may be tacked
onto the holding period of the Warrant, and the Company agrees not to take a position contrary to this Section 4.4. The Company
agrees to take all actions, including, without limitation, the issuance by its legal counsel of any necessary legal opinions,
necessary to comply with the foregoing.

 

5.              
CONDITIONS TO COMPANY’S OBLIGATIONS HEREUNDER.

 

The obligations
of the Company to the Holder hereunder are subject to the satisfaction of each of the following conditions, provided that these
conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing
the Holder with prior written notice thereof:

5.1           
The Holder shall have duly executed this Agreement and delivered the same to the Company.

5.2           
Each of the Other Holders shall have duly executed the Other Agreement of such Other Holder and delivered the same to the
Company.

5.3           
The representations and warranties of the Holder contained herein shall be true and correct in all material respects as
of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date which shall be true and correct as of such specified date), and the Holder shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by the Holder at or prior to the Closing Date.

6.              
CONDITIONS TO HOLDER’S OBLIGATIONS HEREUNDER.

 

The obligations
of the Holder hereunder are subject to the satisfaction of each of the following conditions, provided that these conditions are
for the Holder’s sole benefit and may be waived by the Holder at any time in its sole discretion by providing the Company
with prior written notice thereof:

6.1           
The Company shall have duly executed and delivered this Agreement to the Holder.

6.2           
The Company shall have paid the Lead Investor Counsel Expenses to Greenberg Traurig LLP by wire transfer of U.S. dollars
and immediately available funds in accordance with the written instructions of Greenberg Traurig LLP delivered to the Company on
or prior to the Closing Date.

6.3           
The Company shall have duly executed and delivered to the Holder the Exchange Shares and the Exchange Warrant in such amounts
as described below the Holder’s name on the signature page of the Holder.

6.4           
The Collateral Agent shall have instructed the Collateral Account Bank (as defined in the Notes) with respect to the Master
Restricted Account to deliver the Release Amount to the Holder, in accordance with the written instructions of the Holder delivered
to the Collateral Agent on or prior to the Closing Date.

6.5           
The Company shall have delivered to the Holder a copy of each Other Agreement, duly executed and delivered by the Company
and each Other Holder party thereto.

6.6           
The Company shall have delivered to the Holder a certificate, in the form acceptable to the Holder, duly executed by the
Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions authorizing the transactions contemplated
hereby as adopted by the Company’s board of directors, in a form reasonably acceptable to the Holder, (ii) the Certificate
of Incorporation of the Company and (iii) the Bylaws of the Company, each as in effect at the Closing.

6.7           
Each and every representation and warranty of the Company contained herein shall be true and correct in all material respects
as of the date when made and as of the Closing Date as though originally made at that time (except for representations and warranties
that speak as of a specific date, which shall be true and correct as of such date) and the Company shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required to be performed, satisfied or complied
with by the Company at or prior to the Closing Date. The Holder shall have received a certificate, duly executed by the Chief Executive
Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably
requested by the Holder in the form acceptable to the Holder.

6.8           
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for
the Amendment and the Exchange, including without limitation, those required by the Principal Market.

6.9           
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Agreements.

6.10        
The Company shall have delivered to the Holder such other documents relating to the transactions contemplated by this Agreement
as the Holder or its counsel may reasonably request.

    	(4)

    	 

    

7.              
TERMINATION.

In the event that
the Closing does not occur on or before five (5) Business Days from the date hereof due to the Company’s or the Holder’s
failure to satisfy the conditions set forth in Sections 5 and 6 hereof (and the nonbreaching party’s failure to waive such
unsatisfied conditions(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching
party at the close of business on such date without liability of any party to any other party. Upon such termination, the terms
hereof shall be null and void and the parties shall continue to comply with all terms and conditions of the Agreements,
as in effect prior to the execution of this Agreement.

8.              
MISCELLANEOUS.

8.1           
Miscellaneous Provisions. Section 9 of the Existing Securities Purchase Agreement (as amended hereby) is hereby incorporated
by reference herein, mutatis mutandis.

8.2           
Most Favored Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees from
and after the date hereof that none of the terms offered to any Person with respect to any consent, release, amendment, settlement
or waiver relating to the terms, conditions and transactions contemplated hereby (each a “Settlement Document”),
is or will be more favorable to such Person than those of the Holder and this Agreement. If, and whenever on or after the date
hereof, the Company enters into a Settlement Document, then (i) the Company shall provide notice thereof to the Holder immediately
following the occurrence thereof and (ii) the terms and conditions of this Agreement, the other Exchange Documents and the Securities
(other than any limitations on conversion or exercise set forth therein) shall be, without any further action by the Holder or
the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive
the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided
that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended or modified
term or condition, in which event the term or condition contained in this Agreement or the Securities (as the case may be) shall
apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification
never occurred with respect to the Holder. The provisions of this Section 8.2 shall apply similarly and equally to each Settlement
Document.

 

[The remainder of the page is intentionally
left blank]

 

    	(5)

    	 

    

 

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

 

COMPANY:

WORLDS INC.

		By:_____________________________________	

Name:

Title:

 

 

    	(6)

    	 

    

 

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

 

HOLDER:

 

HUDSON BAY IP OPPORTUNITIES MASTER FUND LP

		By:________________________________	

Name:

Title:

 

	Principal Amount of Series A Notes:	$467,187.50
	Principal Amount of Series B Notes:	$467,187.50
	Principal Amount of Series C Notes:	215,625
	Aggregate Number of Warrant Shares:	2,173,363
	Release Amount:	$952,781.55
	Exchange Shares:	3,417,750

 

    	(7)

    	 

    

 

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

 

HOLDER:

 

IROQUOIS MASTER FUND LTD.

		By:________________________________	

Name:

Title:

 

	Principal Amount of Series A Notes:	$467,187.50
	Principal Amount of Series B Notes:	$467,187.50
	Principal Amount of Series C Notes:	215,625
	Aggregate Number of Warrant Shares:	2,173,363
	Release Amount:	$952,781.55
	Exchange Shares:	3,417,750

 

    	(8)

    	 

    

 

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

 

HOLDER:

 

GRQ CONSULTANTS, INC. 401K

		By:________________________________	

Name:

Title:

 

	Principal Amount of Series A Notes:	$40,625
	Principal Amount of Series B Notes:	$40,625
	Principal Amount of Series C Notes:	$18,750
	Aggregate Number of Warrant Shares:	188,988
	Release Amount:	$45,866.95
	Exchange Shares:	164,500

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}]]