Ann: Appendix 3B , page-6

These would most likely be options that were issued in lieu of interest on the original convertible notes when they were (optionally) converted from interest bearing to non interest bearing secured notes. Effectively, these were worked out to be the anount of interest that would have been paid on the notes, using a value at about .028 per share at the time. Quite a few of the smaller noteholders converted them and took these options. From time to time, you see a few of these being converted to shares.