They're not conventional options.
They're a series of options, one vesting per month, together with an interest-free loan to pay the exercise price.
They're options because the holder is under no obligation to exercise any of them.
e.g. if at any stage the holder thought that the SP at the end of the 5 year loan period would be less than 3.5c, he need not buy any shares that month.
Each of the monthly options expires immediately if not taken up that month.
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