Stock Based Compensation

9 Months Ended

Jul. 31, 2011

Note 7. Stock Based Compensation

On August 8, 2006, the Board of Directors approved a stock option plan (the"2006 Stock Option Plan"), the purpose of which is to enhance the Company’s stockholder value and financial performance by attracting, retaining and motivating the Company’s officers, directors, key employees, consultants and its affiliates and to encourage stock ownership by such individuals by providing them with a means to acquire a proprietary interest in the Company’s success through stock ownership. Under the 2006 Stock Option Plan, officers, directors, employees and consultants who provide services to the Company may be granted options to acquire common shares of the Company. Options may have a term of up to 10 years. The aggregate number of shares of common stock originally authorized under the plan was 5,000,000. Since adoption of the Plan an additional 1,200,000 shares were authorized for issuance pursuant to the Plan’s "evergreen share reserve increase" provision.

During the nine month period ended July 31, 2011, no stock options were granted.

During the nine month period ended July 31, 2011, the Company did not recognize any stock-based compensation costs.

Date of grant	14-May			20-Jul			1-Aug			9-Aug			20-Feb			1-Mar			15-May			24-Sep
	2007			2007			2007			2007			2008			2008			2008			2008			Total

Risk free rate		4.50	%		4.50	%		4.50	%		4.50	%		5.00	%		5.00	%		5.00	%		2.95	%
Volatility factor		50	%		50	%		50	%		50	%		100	%		98	%		86	%		84	%
Expected dividends		0	%		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Forfeiture rate		0	%		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Expected life	5 years			5 years			5 years			5 years			2 years			5 years			5 years			5 years
Exercise price	$	0.50		$	0.50		$	0.50		$	0.51		$	0.40		$	0.50		$	0.35		$	0.50

Total number of options granted		1,750,000			250,000			1,700,000			650,000			250,000			490,000			200,000			50,000
Total number of options forfeited/cancelled/Expired/Exercised		-			-			-			-			-			(110,000	)		-			-
Grant date fair value	$	0.24		$	0.24		$	0.24		$	0.24		$	0.22		$	0.27		$	0.25		$	0.13

Stock-based compensation cost expensed during the quarter ended January 31, 2011	$nil			$nil			$	$nil		$nil			$nil			$	$nil		$nil				$nil			$nil

Unexpended Stock -based compensation cost deferred over the vesting period	$nil			$nil			$nil			$nil			$nil			$nil			$nil				$nil			$nil

As of July 31, 2011 there was $nil of unrecognized expenses related to non-vested stock-based compensation arrangements granted. The stock-based compensation expense for the nine month period ended July 31, 2011 was $nil.

Pacific Copper Corp. 10-Q/A