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## d. Stock options 

At the Annual General Shareholder s’ Meeting of the Company held on November 9, 2010, the 2010 Stock Option Plan was approved (the “2010 Plan”) and replaced the 2009 Stock Option Plan. The 2010 Plan increased the maximum number of the Company’s shares reserved for issuance pursuant to opti on granted under the plan to 28,941,000 from 22,126,000 with other terms intact. According to the 2010 Plan, the Company grants stock purchase options to its directors, officers, employees and consultants. The number of shares reserved for issuance under the 2010 Plan shall not exceed 17% of the total number of issued and outstanding shares on a non-diluted basis. The total number of stock options granted during the year together with previously granted stock options shall not exceed, on a non-diluted basis, 6% for any one Optionee; 15% for Insiders as a group, 2% for any one Consultant; 2% for all Eligible Persons who undertake Investor Relations Activities. As at June 30, 2011, 29,826,000 stock options have been granted of which 3,505,000 were forfeited, 70,000 expired and 1,451,833 have been exercised, leaving 24,799,167 stock options are still outstanding and 2,690,000 shares reserved and to be granted under the 2010 Plan. 

Stock option activity is as follows: 

<img src='content_image/211002.jpg'>

During the year ended June 30, 2011, 3,920,000 options were granted to employees and a director (2010 –  2,930,000 options were granted to employees, consultants and a director). 

The following table summarizes the stock options outstanding at June 30, 2011: 

<img src='content_image/211003.jpg'>

