Common use of Option Award Clause in Contracts

Option Award. As of the date hereof, Employer shall grant to Executive an Option with respect to 250,000 shares of Common Stock with an exercise price equal to the closing price of the Common Stock on the NASD OTC Bulletin Board as of the trading day immediately prior to the date hereof (the "Option Award"). The 250,000 Option Award shall not be adjusted in terms of the number of shares issuable upon exercise in the event of a reverse stock split of up to 1 for 30 effected within one year of the date hereof, but the exercise price will be adjusted. The Options shall vest and become exercisable when, as and after the date that the Company's market capitalization (the total number of outstanding shares of common stock and common stock equivalents, i.e., debt and preferred stock convertible into common stock, computed on an as converted basis, multiplied by the transaction price reported by a stock exchange, an automated quotation system such as the Nasdaq Stock Market or the OTC Bulletin Board, or a market maker) first equals or exceeds $25,000,000; and the Options shall have such other terms and conditions as set forth in the Stock Option Agreement attached hereto as Exhibit B.

Option Award. As of the date hereof, Employer shall grant to Executive an Option with respect to 250,000 400,000 shares of Common Stock with an exercise price equal to the closing price of the Common Stock on the NASD OTC Bulletin Board as of the trading day immediately prior to the date hereof (the "400,000 Option Award"). The 250,000 400,000 Option Award shall not be adjusted in terms of the number of shares issuable upon exercise in the event of a reverse stock split of up to 1 for 30 effected within one year of the date hereof, but the exercise price will be adjusted. The Options shall vest and become exercisable when, as and after the date that the Company's market capitalization (the total number of outstanding shares of common stock and common stock equivalents, i.e., debt and preferred stock convertible into common stock, computed on an as converted basis, multiplied by the transaction price reported by a stock exchange, an automated quotation system such as the Nasdaq Stock Market or the OTC Bulletin Board, or a market maker) first equals or exceeds $25,000,000; and the Options shall have such other terms and conditions as set forth in the Stock Option Agreement attached hereto as Exhibit B.