COS L1B to H1B - Convert to Consular Processing H1B

[samace]

Hi All -

I am on L1B currently with I94 till Nov 2015(Visa expired Nov 2012) - my wife is on L2 EAD with I94 till same date( Visa expired Nov 2012).

Her EAD card has a work authorization date till June 2014.

This year both of us filed H1B - Mine was L1 to H1B COS - However mine got selected and my wife H1B was not picked from in the lottery.I did not applied for her H4.

What I understand - from October 1st she will go out of status and will nto be able to work in his fulltime job here.

Wanted to check on the options I have -

a.) Can I change COS L1B to H1B - Convert to Consular Processing H1B

Please note she cannot apply for L1 as she has been with her current employer for an year now completely in US.

Please advise on any other suitable option?

Thanks

Samace