Stock Option Plans

12 Months Ended

Dec. 31, 2011

Stock Option Plans [Abstract]

Stock Option Plans

6.  Stock Option Plans

On September 29, 2006, the Company adopted the Colonial Commercial Corp. 2006 Stock Plan, (the “2006 Plan”).  The 2006 Plan enables the Company to grant equity and equity-linked awards to the Company's Directors, officers, employees and other persons who provide services to the Company.  The 2006 Plan is intended to allow us to provide incentives that will (1) strengthen the desire of highly competent persons to provide services to us and (2) further stimulate their efforts on the Company's behalf.

The following is a summary of certain provisions of the 2006 Plan.

Shares Available. The maximum number of shares of common stock that may be delivered under the 2006 Plan is 1,000,000, subject to adjustment for certain specified changes to the Company's capital structure.  As of December 31, 2011, 925,000 options were available to be issued.

Eligibility. All directors, officers and other employees and other persons who provide services to the Company are eligible to participate in the 2006 Plan.

Administration. The administrator of the 2006 Plan will be the board or any other committee which the board designates to serve as the administrator of the 2006 Plan.

Types of Awards. The types of awards that may be made under the 2006 Plan are stock options, stock appreciation rights, restricted stock awards, and stock units. The board or the committee that administers the 2006 Plan will fix the terms of each award, including, to the extent relevant, the following: (1) exercise price for options, base price for stock appreciation rights, and purchase price, if any, for restricted stock awards, (2) vesting requirements and other conditions to exercise, (3) term and termination, (4) effect, if any, of a change of control and (5) method of exercise and of any required payment by the recipient.

Term of Plan. No award may be granted under the 2006 Plan after the close of business on the day immediately preceding the tenth anniversary of the adoption of the 2006 Plan. However, all awards made prior to such time will remain in effect in accordance with their terms.

No options were granted during the years ended December 31, 2011 and 2010.

The Company uses the Black-Scholes valuation method to estimate the fair value of stock options at the grant date.  The Black-Scholes valuation model uses the option exercise price and the number of options expected to be exercised as well as assumptions related to the expected price volatility of the Company's stock, the rate of return on risk-free investments, the period during which the options will be outstanding, and the expected dividend yield for the Company's stock to estimate the fair value of the stock option on the grant date.  The fair value of the stock options, which are subject to graded vesting, is expensed on a straight-line basis over the vesting life of the stock options.

Changes in options outstanding are as follows:

	Shares Subject  to Option		Weighted  Average  Exercise Price		Aggregate Intrinsic Value
Balance at December 31, 2009		75,000	$	1.85
Options Granted		0		0.00
Options Exercised and/or Forfeited		0		0.00		*
Balance at December 31, 2010		75,000	$	1.85
Options Granted		0		0.00
Options Exercised and/or Forfeited		0		0.00
Balance at December 31, 2011		75,000	$	1.85		*
Exercisable at December 31, 2011		75,000	$	1.85		*

*Intrinsic value is the value by which the quoted market price of the Company's common stock exceeds the exercise price. As of December 31, 2011 and 2010, the quoted market price of the Company's common stock was less than the exercise price.

In 2011 and 2010, the amount of stock-based compensation was $0 and as of December 31, 2011, the Company had no unrecognized compensation.

The following table summarizes information about stock options at December 31, 2011:

Options Outstanding and Exercisable
				Weighted Average
Range of				Remaining		Weighted Average
Exercise Prices		Shares		Contractual Life		Exercise Price
$	1.85		75,000		4.94	$	1.85