Note 9. Stock Option

Stock option plan: The below options are unsubscribed and were granted to the Company’s former President, CEO, Director and Secretary in consideration with their employment with the Company. These options were granted by the Board for the optionee to purchase shares of the Company’s common stock. These stock options are not “incentive stock options” under Section 422 of the Internal Revenue Code of 1986. The granted options fully vested upon issuance on October 22, 2002 and expired on March 31, 2013.

Stock option activity for the two years ended December 31, 2013 is summarized as follows:

	Weighted
	Average
	Shares		Exercise Price

Outstanding at December 31, 2011		85,000	$	2.80

Granted		-		-
Exercised		-		-
Expired or cancelled		-		-

Outstanding at December 31, 2012		85,000		2.80

Granted		-		-
Exercised		-		-
Expired or cancelled		(85,000)		(2.80)

Outstanding at December 31, 2013		-0-		0

The intrinsic value of a stock option/SSAR is the amount by which the market value of the underlying stock exceeds the exercise price of the options/SSAR. The intrinsic value of the options/SSAR as of December 31, 2012 was $0.