Executive Vice President
Employment Contract
This agreement, made and
effective as of the 22nd day of January 2007, is by and
between Enova Systems, Inc., a California corporation (hereinafter
“Enova”), and Michael Staran, an individual
(hereinafter “Staran”). This Agreement provides for a
continuous employment, unless otherwise noted herein.
WHEREAS, the Enova desires to
secure the services of Staran as Executive Vice President of Enova,
and Staran desires to accept such employment.
NOW THEREFORE, in consideration
of the material advantages accruing to the two parties and the
mutual covenants contained herein, and intending to be legally and
ethically bound hereby, Enova and Staran agree with each other as
follows:
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1.
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Staran will
render full-time professional services to Enova in the capacity of
Executive Vice President of the Enova Systems, Inc. Staran will at
all times, faithfully, industriously and to the best of his
ability, perform all duties that may be required of him by virtue
of his position as executive vice president and all duties set
forth in Enova’s bylaws and in policy statements of the Board
and the CEO. It is understood that these duties shall be
substantially the same as those of an Executive Vice President of
other business corporations. The Executive Vice President is hereby
vested with authority to assist the President and CEO on behalf of
the Board in keeping with policies adopted by the Board, as amended
from time to time. In addition, Staran shall perform in the same
manner any special duties assigned or delegated to him by the
president and CEO.
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2.
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Continued
employment will be contingent upon Staran signing a copy of this
contract, an Arbitration Agreement, and his ability to provide
legally required documentation of his eligibility to work within
the United States, as required by the Immigration Reform and
Control Act.
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3.
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In addition, as
an employee of Enova, Staran will have access to certain Enova
confidential information and may, during the course of his
employment, develop certain information or trade secrets which will
be the property of Enova. To protect the interests of the company,
Staran will sing a “Confidential Information Agreement”
if so requested at any time by Enova. Enova wishes to impress upon
Staran that it does not want him to bring any confidential or
proprietary material of any former employers prior to Enova
Systems, or to violate any other obligation to his former
employers.
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4.
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In
consideration for these services as Executive Vice President, Enova
Systems, Inc. agrees to pay Staran a salary of $190,000.00 per
annum or such higher figure as shall be agreed upon at an annual
review of his compensation and performance by the President and CEO
payable in bi-weekly installments throughout the contract year.
This annual review shall occur three months prior to the end of
each year of the contract for the express purpose of considering
increments.
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5.
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Staran will
receive 6,000 shares common stock in Enova Systems, Inc. The shares
will be restricted stock to for a period of one year from date of
issuance.
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6.
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Staran will be
eligible for bonus, as well as the performance based stock plan
established by Enova’s Compensation Committee annually.
Objectives for such consideration shall be set forth no later than
November of each year.
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1
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a.
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Staran shall be
entitled to all other fringe benefits to which all executives and
employees of the Enova are entitled.
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b.
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Staran will be
eligible on the first of the month following the date of hire for
Medical, Dental, Vision, and the standard term benefit life
insurance policy with his choice of beneficiary. In lieu of medical
benefits, Enova agrees to pay the monthly employee-portion of
Staran’s current medical insurance not to exceed $700.00 per
month unless otherwise mutually agreed by both parties.
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c.
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In the event of
a single period of prolonged inability to work due to the result of
a sickness or an injury, Staran will be compensated at his full
rate pay for at least 3 (three) months from the date of the
sickness or injury.
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d.
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Staran will be
eligible for a $300 per month automobile allowance. This allowance
is to cover all expenses relating to the insurance cost of fuel and
maintenance of set automobile when used on company
business.
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8.
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The President
and CEO may at his discretion terminate Staran’s duties as
Executive Vice President. Such action shall become effective upon
written notice to Staran or at such later time as may be specified
in said notice. After such termination, all rights, duties and
obligations of both parties shall cease except that Enova Systems,
inc. shall continue to pay Staran his then monthly salary for the
month in which his duties were terminated. Staran shall also for 3
consecutive months thereafter as an agreed upon severance payment,
during this period, Staran shall not be required to perform any
duties for Enova Systems, Inc. or come to Enova’s offices.
Neither shall the Staran accepts, a
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