4.	Stock Option Plans

At December 31, 2011, the Company maintains two stock-based employee compensation plans.

During 1995, the Company adopted a Stock Option Plan covering 1,000,000 shares of the Company’s common stock. In July 2005, the Company issued an option to its president to acquire 50,000 shares of the Company’s common stock at a price of $.15 per share under the Company’s stock option plan. The option expires in July 2015 and was fully vested when issued.

In December 2005, the Company issued options to its directors to acquire 200,000 shares of the Company’s common stock at a price of $.15 per share. The options expire in December 2015 and were fully vested when issued.

During 2005, the Company adopted a Stock Option Plan covering 2,300,000 shares of the Company’s common stock. In September 2005, the Company issued an option to its president to acquire 250,000 shares of the Company’s common stock at a price of $.20 per share under the Company’s 2005 stock option plan, subject to the approval of the Plan by shareholders. The Plan was approved at the shareholders meeting on December 9, 2005. The option expires in December 2015 and was fully vested when issued. In connection with a separation agreement in September 2012, the president agreed that these options for 250,000 shares and the options for 50,000 shares that were issued in July 2005 would expire within 90 days of the termination date, which was February 28, 2013. The options were not exercised and have expired.

The Company did not issue any stock options or share-based payments in 2011 or in 2010.

The following table summarizes employee stock option activity:


Employee Options Outstanding	Number of Shares			Range of Per Share Option Price ($)	Weighted Average Exercise Price ($)		Aggregate Option Price ($)			Aggregate Intrinsic Value ($)
Outstanding and exercisable at December 31, 2009		450,000		.15 - .20		.17		80,000			—
Issued or cancelled during 2010		—		—		—		—			—


Outstanding and exercisable at December 31, 2010		450,000		.15 - .20		.17		80,000			—
Issued or cancelled during 2011		(100,000	)	.15		.15		(15,000	)		—


Outstanding and exercisable at December 31, 2011		350,000		.15 - .20		.18		65,000			—


Available for grant at December 31, 2011:		2,925,000

The Aggregate Intrinsic Value in the preceding table represents total intrinsic value (of options in the money), which is the difference between the Company’s closing stock price on the last trading day of 2011 and the exercise price times the number of shares that would have been received by the option holders had the option holders exercised their options on December 31, 2011.

Summary of Employee Options Outstanding at December 31, 2011


Year Granted	Number of Shares		Expiration Date	Exercise Prices ($)
Granted 2005		50,000	July 25, 2015		.15
Granted 2005		250,000	December 20, 2015		.20
Granted 2005		50,000	December 20, 2015		.15

The weighted-average remaining contractual life of the outstanding stock options at December 31, 2011, and 2010 was 4 years and 5 years, respectively. In connection with a separation agreement in September 2012, the president agreed that the options for 250,000 shares and the options for 50,000 shares would expire within 90 days of the termination date, which was February 28, 2013. The options were not exercised and have expired.

Nonqualified Stock Options

In July 2005, the Company issued an option to its legal counsel to acquire 25,000 shares of the Company’s common stock at a price of $.15 per share. The option expires in July 2015 and was fully vested when issued.

A summary of non-employee option activity follows:


Non-Employee Options Outstanding	Number of Shares		Range of Per Share Option Price ($)		Weighted Average Exercise Price ($)		Aggregate Option Price ($)		Aggregate Intrinsic Value ($)
Outstanding and exercisable at December 31, 2009		25,000		.15		.15		3,750		—
Issued or cancelled during 2010		—		—		—		—		—


Outstanding and exercisable at December 31, 2010		25,000		.15		.15		3,750		—
Issued or cancelled during 2011		—		—		—		—		—


Outstanding and exercisable at December 31, 2011		25,000		.15		.15		3,750		—

The Company did not issue any stock options or share-based payments to non-employees in 2011 or in 2010.

The following table summarizes information about non-employee stock options:

Summary of Non-Employee Options Outstanding at December 31, 2011


Year Granted	Number of Shares		Expiration Date	Exercise Prices ($)

Granted 2005		25,000	July 18, 2015		.15