Additional Transaction Letter between World Am, Inc. and La Jolla Cove Investors, Inc. (June 22, 2006)

Contract Categories: Business Finance › Debenture Agreements
Summary

World Am, Inc. and La Jolla Cove Investors, Inc. agree to enter into an additional convertible debenture and warrant under the same terms as their previous agreement once the principal amount of the prior debenture falls below $100,000. This must occur within thirty days of that threshold being met. If La Jolla Cove Investors fails to enter into the new debenture, it must pay World Am $100,000 in liquidated damages. If World Am chooses not to proceed, it must pay the same amount to La Jolla Cove Investors.

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EX-4.13 8 worldex413062706.txt EX-4.13 ADDITIONAL TRANSACTION LETTER LA JOLLA COVE 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 22, 2006 Robert A. Hovee World Am, Inc. 4040 MacArthur Boulevard, Suite 240 Newport Beach, CA 92660 Re: Additional Transactions Dear Mr. Hovee: Reference is made to the Convertible Debenture dated June 19, 2006 issued by World Am, Inc. ("World") to La Jolla Cove Investors, Inc. ("LJCI"). All terms used herein and not otherwise defined herein shall have the definitions set forth in the Convertible Debenture. The parties shall enter into an additional debenture and warrant to purchase common stock, each on the same terms and conditions as the Convertible Debenture and warrant. The parties must enter into such convertible debenture no later than thirty days after the Debenture Principal Amount is less than $100,000 for the prior debenture. In the event that LJCI fails to enter into the additional debenture in accordance with the terms of this paragraph, LJCI shall pay World liquidated damages of $100,000. If World does not want LJCI to enter into the additional debenture, World will pay LJCI liquidated damages of $100,000. Sincerely, /s/ Travis W. Huff Travis W. Huff Portfolio Manager World Am, Inc. By: /s/ Robert A. Hovee Robert A. Hovee Chief Executive Officer