X0202 4 2002-02-28 0 0000021178 PROSPECT STREET INCOME SHARES INC CNN 0001365257 Deadman Davis R 13455 NOEL ROAD SUITE 1300 DALLAS TX 75240 0 0 0 1 Affiliate - Investment Advisor Stock Option (Right-to-Buy) 1.75 2002-02-28 4 J 0 1 0.00 A 2002-02-28 2022-02-28 Common Stock 14285.72 1 D Per share exercise price of each option shall be the greater of (a) the price specified in Column 2 and (b) fifty percent (50%) of the fair market value of the underlying shares of Prospect Street Income Shares, Inc. ("CNN") on the date of exercise. Options to purchase shares of common stock, par value $1.00 per share, of CNN granted pursuant to the HCM Services Employee Option Plan. /s/ Davis R. Deadman 2006-06-19