Ann: Appendix 3B - Clarification, page-13

So they calculated the shares on $350K Face value conversion.
$350K of shares at $0.026 = 13,461,538 shares.

This is to be grossed up by the interest outstanding to the maturity date and they get issued the shares on the grossed up value.

$350k + interest = $437,675

So the interest grossed up is still 25.05% (3 years x 8.35%).

If Xped made a quarterly interest payment, it would be 2.75 years x 8.35% = 22.9625%

So if Xped made the quarterly interest payment, which I am betting they did, they are getting ripped off by 2.0875% of $350K in shares = 7306 shares. If no interest payment made?? Xped are in breach of the CN agreement - yes?

It is clear what has happened.