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Re: Flatsixer post# 538

Sunday, 04/01/2007 8:54:51 PM

Sunday, April 01, 2007 8:54:51 PM

Post# of 9314
As of December 31,
2006, Laurus Master Fund, Ltd. (the "Fund") held (i) an Amended and Restated
Secured Convertible Term Note in the aggregate principal amount of $5,942,175,
which is convertible into Shares at a conversion rate of $0.09 per Share,
subject to certain adjustments (the "Term Note"), (ii) warrants to purchase up
to 13,750,000 Shares at an exercise price of $0.10 per Share, subject to certain
adjustments (the "Warrant"), (iii) an option to purchase up to 28,895,179 Shares
at an exercise price of $0.01 per Share, subject to certain adjustments (the
"2005 Option"), (iv) an option to purchase up to 11,145,000 Shares an at
exercise price of $0.01 per Share, subject to certain adjustments (the "2006
Option") and (v) 2,611,111 Shares.

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