Haddad v. Electronic Production & Development, Inc.

Plaintiff was a director of defendant corporation and the corporation, desirous of expanding its operations, proposed to sell to the public 150,000 shares of its stock. Considering the value to the corporation of the continued service of its key personnel, the directors contemplated providing for the issuance of options to such directors to purchase additional shares of stock of the corporation for a minimal price for a limited period, provided they re.mained with the company.

Discussions and meetings were had regarding the pro.? posed issue of stock. Upon application the Commissioner of1…