The Colorado Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive program specifically designed for directors who serve on the board of the company based in Colorado. It aims to provide eligible directors with stock options as a form of compensation and incentive for their service and contribution to the company's growth and success. Under this plan, eligible directors are granted the opportunity to purchase company stock at a predetermined price, known as the exercise price. These options typically have a specified vesting period, during which the director must continue to serve on the board before being able to exercise their stock options. The Colorado Eligible Directors' Stock Option Plan offers various types of stock options to provide flexibility and cater to the different needs of directors. These may include: 1. Non-Qualified Stock Options (Nests): Nests are the most common type of stock options granted under this plan. They offer directors the opportunity to purchase company stock at a predetermined price with no special tax advantages. 2. Incentive Stock Options (SOS): SOS provide eligible directors with tax advantages as they may qualify for preferential tax treatment upon exercise and sale of the stock. These options are subject to additional rules set by the Internal Revenue Service (IRS). 3. Restricted Stock Units (RSS): In certain cases, the plan may offer RSS instead of stock options. RSS represents the right to receive company stock at a future date, usually after completing a specified vesting period. The Colorado Eligible Directors' Stock Option Plan aligns the interests of directors with those of the company's shareholders by incentivizing directors to contribute to the long-term success and financial growth of Kyle Electronics. It promotes retention of experienced directors and encourages their active involvement in decision-making processes. In summary, the Colorado Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive compensation program designed to reward eligible directors by granting them stock options or restricted stock units. With different options available, the plan aims to align the interests of directors with those of the company's shareholders while encouraging long-term commitment and active participation in the company's growth.