Which to buy AGOO OR AGOOA, page-10

Basically it means at that by that date you have the right to exercise the option of purchasing shares equal to the amount of options you hold for a fixed price of 7.5c/share.

If AGO shares are valued at 10c/share at the time you have yourself a nice saving as the cost to you is 7.5c+cost of your option (provided you bought options at a low enough price of course).. if they're below 7.5c you most likely wouldn't exercise your right and as such forfeit your options losing what you paid for them.