Thanks for the response. I could be wrong but the way I read it in the MSA is that S/L are transferring these warrants back to the issuer.

``(i) The Company agreed to pay the warrant holders $2,327,651 through the escrow established under the Master Agreement;

(ii) All of the warrant holders consented to the transaction described in the Master Agreement, and the entities holding warrants agreed to amend their rights with regard to those warrants to eliminate their lien rights, warrant redemption rights, and right of first refusal rights;

(iii) One of the entity warrant holders agreed to reconvey warrants to acquire 12,000,000 shares to the Company; and

(iv) Warrants held by one of the entity warrant holders will be repriced at a lower price.

In the agreement in (iii) it states ``to reconvey`` not to exercise the actual warrants. I believe reconvey is the key word here (see below). It seems with the payment in (i) we have actually retired some of these warrants. If my understanding is correct this would truly be a blessing for us share holders. I`ll wait for someone to confirm because before I get too excited about this.

Main Entry: re•con•vey

Pronunciation: ``rE-k&n-`vA

Function: transitive verb

: to convey back or again

Enjoy the beach my friend!

.OB