Common use of Common Stock Purchase Options Clause in Contracts

Common Stock Purchase Options. Upon execution of this agreement, Executive will be issued One Million Two Hundred Thousand (1,200,000) shares of common stock of the Company. Executive will additionally be issued a non-qualified stock option, as defined in the Internal Revenue Code of 1986, as amended, to purchase up to One Million Two Hundred Thousand (1,200,000) common shares of the Company, par value $.001. The exercise price of the incentive stock options will be priced at five cents ($.05) per share or 50% of the fair market value of the common stock, whichever is the lesser of the two, determined with reference to the average closing price of common stock as reported by the Electronic Bulletin Board of the prior 10 trading days of the exercise date of each option period. Options shall be issued with a cashless exercise option. The options will expire 10 years after the issuance.

Common Stock Purchase Options. Upon execution of this agreementOn October 1, 2009, Executive will be issued One Million Two Hundred Thousand (1,200,000) shares of common stock of the Company. Executive will additionally be issued a non-qualified nonqualified stock option, as defined in the Internal Revenue Code of 1986, as amended, to purchase up to One Million Two Four Hundred Fifty Thousand (1,200,000450,000) common shares of the Companyshares, par value $.001. , of Parent, Arrayit Corporation, Inc. The exercise price of the incentive stock options will be priced at five cents ($.05) per share or 50equal to 75% of the fair market value of Parent's common stock at the time of issuance Fair Market Value means the average of the closing bid price for the common stock, whichever is shares during the lesser twenty (20) trading days immediately prior to the date of issuance. One-third of the two, determined with reference to original number of options may be exercised respectively on the average closing price of common stock as reported by the Electronic Bulletin Board expiration of the prior 10 trading days of first, second and third six month period after the exercise date of each option period. Options shall be issued with a cashless exercise optionoriginal issuance. The options will expire 10 five years after the issuance.