I read it as she exercised the right to buy 100K at .0745.

I am not familiar with current tax law, but I take these exercises as a good sign.  As I recall from about 7 years ago, if you exercise an employee option, taxwise your are locked into the price on the day of exercise.

So if you exercise options with the stock trading at .75 and wind up selling at .50, Uncle Sam is going to tax you as if you sold at the higher price.

Those of you with more tax experience are welcome to correct me if I am wrong on this.