Ann: Issue of Options, page-22

so the shareholders : institutions who were awarded options can sell their heads at 2.5 cents and be left with two free options / the second one converted on the proviso you have taken up the first option.

so someone buys 1milliin shares and is given 1 million options and then sell 1 million their heads. They are left with the options as a gift for their time / connections etc

if Davis can’t sell - the shares go to 1 cent - options owner doesnt care - hasn’t cost him / her a dime.

If in the next 12 months David manages to sell the sauce - and th share price goes to 10 or even 50 cents.

The lucky option can at anytime within 12 convert their options at 3.5 cents.

you are right - they are not free .

There is no risk - so they are risk free !!!!