No, he need not wait until the PPS reaches .001, God forbid.
These options were granted deep in the $ (then, lol) and was an incentive to participate.
Read another way, I'm sure he would much rather see the PPS back @ .038 or higher as his options would be worth that much more (difference between the exercise price and the PPS).
The 8K further lets us know that they must be exercised before 4-4-2009 or they expire. Also, that in lieu of cash for services he chose shares in the co, a demonstration of confidence in his investment for sure.
Tax considerations suggest that these options wil be exercised soon, imo.
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