KRCOA (KRC Options), page-18

If you buy KRCOA which is now at 0.008 and KRC goes over 10c by June 30 (which IMO it appears it will), then you can either;

1. Exercise your options and buy KRC at the agreed exercise price of 10c (http://www.ozstockstats.com/company-option/KRCOA) — EVEN IF by then KRC is at 15c or 20c by June 30 OR;
2. Sell your KRCOA at the market price before June 30 — which if anytime between now and then KRC is over 10c, your KRCOA should be worth much more than today’s purchase price of 0.008.

Putting example #1 into perspective, let’s say you have 50,000 KRCOA, you can buy $5000 worth of KRC shares at the exercise price of 10c at the shares registry in June even if by then KRC is at 50c or even $50 per share. Think of it as an agreement between you and KRC that no matter what, you can exercise your options at 10c per share OR sell at market price as you would any other stock, anytime before June 30.