Stock Options

6 Months Ended

Jun. 30, 2011

Stock Options

7.             Stock Options

In 2007, the Company's Board of Directors approved the 2007 Stock Option Plan (“the Plan”) to offer an incentive to obtain services of key employees, directors and consultants of the Company. The Plan provides for the reservation for awards of an aggregate of 10% of the total shares of Common Stock outstanding from time to time. No Plan participant may receive stock options exercisable for more than 2,500,000 shares of Common Stock in any one calendar year.  Under the Plan, the exercise price of an incentive stock option must be at least equal to 100% of the fair market value of the common stock on the date of grant (110% of fair market value in the case of options granted to employees who hold more than 10% of the Company's capital stock on the date of grant). The term of stock options granted under the Plan is not to exceed ten years and the stock options vest immediately upon granting.

The following is a summary of stock option activity for the six month period ended June 30, 2011 and the status of stock options outstanding and exercisable at June 30, 2011:

	Shares		Exercise price		Remaining Contractual Life (yrs) at 30-Jun-11		Aggregate Intrinsic value at 30-Jun-11
Outstanding at December 31, 2010		1,700,000	$	0.26		-	$	-
Granted		-		-		-		-
Forfeited		-		-		-		-
Outstanding and exercisable at June 30, 2011		1,700,000	$	0.26		1.10	$	-

The aggregate intrinsic value in the table above represents the total pretax intrinsic value for all “in-the-money” options (i.e., the difference between the Company’s closing stock price on June 30, 2011 and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on June 30, 2011.