Cancellation Letter for Securities Purchase Agreement between World Am, Inc. and Golden Gate Investors, Inc.

Summary

This letter confirms the cancellation of the Securities Purchase Agreement, Convertible Debenture, Warrants, and Registration Rights Agreement dated January 23, 2006, between World Am, Inc. and Golden Gate Investors, Inc. The $131,200 previously advanced by Golden Gate Investors will be credited toward future advances under a new agreement to be made between World Am, Inc. and La Jolla Cove Investors, Inc. Both parties have agreed to these terms by signing the letter.

EX-4.7 2 worldex47062706.txt EX-4.7 CANCELLATION LETTER Golden Gate Investors, Inc. 1795 UNION STREET, 3rd FLOOR SAN FRANCISCO, CALIFORNIA 94123 TELEPHONE: (415) 409-8703 FACSIMILE: (415) 409-8704 E-MAIL: ***@*** LA JOLLA www.LJCInvestors.com SAN FRANCISCO June 14, 2006 Robert A. Hovee World Am, Inc. 4040 MacArthur Boulevard, Suite 240 Newport Beach, California 92660 Re: Securities Purchase Agreement Dear Mr. Hovee: This will confirm that the Securities Purchase Agreement, and the 6 3/4% Convertible Debenture, Warrants to Purchase Common Stock, and Registration Rights Agreement in connection therewith, all dated as of January 23, 2006, between World Am, Inc. ("World") and Golden Gate Investors, Inc. ("GGI") are hereby cancelled. The $131,200 already advanced by GGI under these documents shall be credited against advances required under a new Securities Purchase Agreement, and related documents, to be entered into by World and La Jolla Cove Investors, Inc. If this letter correctly reflects our agreements, please acknowledge your agreement by signing below. Sincerely, /s/ Travis W. Huff Travis W. Huff Portfolio Manager Acknowledged and agreed to: World Am, Inc. By: /s/ Robert A. Hovee Robert A. Hovee Chief Executive Officer