We have 186,994,510 prefferred shares @0.11 = $20,569,396

Terms Annual Statement 2009 p 20 para 14(b)(i)(iv) Pay an 8% cumulative annual dividend to JJNICL with interest of 8% accruing on the dividends once they become due. The dividend accrues on a quarterly basis

Then In Dec (p20)

Dividends of $996,348 plus int of $9204 (yr 2009) (part yr expense)

Then in Mar (p20)

Dividends of $405,753 plus interest of $19,927 was accrued during the three months ended Mar 31, 2010 in relation to the preferred shares p 20 para 13(b)(i)(iv)

Interest $996,348 x 8% div 4 = $19,926.96 or approx $19,927

Dividends $20,569,396 X 8% X 90/365 = $405,752.44

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To pay off preferred shares we must pay off the Dividends and Interest due and then pay down the number of preferred shares.

To Minimize the dilution JJNICL will work with Liberty -

JJNICL will work with Liberty to minimize the common share dilution resulting from the conversion of
preferred shares into common shares as much as is feasible once the Corporation is in full production.

This has meant Liberty has been able to get Lines of Credit with JJNICL vice going to the market in which case JJNICL would have converted the equiv # of shares that Lbe would have issued to raise Capital.

To redeem shares Lbe must reimb JJNICL the equiv of a 20% rate of return which I read as $0.132 per share at a mutually agreed upon time. I do not read the May 2011 as a drop down date that everything must be redeemed.

Anyone have any thoughts?