Amendment to Employment Agreement Between Electric Fuel (E.F.L.) Ltd., Arotech Corporation, and Steven Esses
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Summary
This amendment modifies the employment agreement between Steven Esses and Electric Fuel (E.F.L.) Ltd., with Arotech Corporation also involved. Instead of depositing $200,000 in cash into a trust as part of Mr. Esses's retirement payment, the company will issue 273,973 shares of Arotech common stock, valued at $0.73 per share, to be held in trust. The shares will be released or returned under the same conditions as other trust funds, and will be returned to the company if Mr. Esses is terminated for cause. All other terms of the original agreement remain unchanged.
EX-10.2 3 ex10-2.htm EXHIBIT 10.2 (ESSES AMENDMENT LETTER) ex10-2.htm
ACCEPTED AND AGREED:
 | Arotech Corporation 1229 Oak Valley Drive Ann Arbor, Michigan 48108 Tel: ###-###-#### Fax: ###-###-#### http://www.arotech.com Nasdaq Global Market: ARTX Writer’s direct dial: +972-2 ###-###-#### Writer’s direct fax: +972-2 ###-###-#### Writer’s e-mail: ***@*** |
| Robert S. Ehrlich Chairman and Chief Executive Officer |
April 19, 2009
Mr. Steven Esses
c/o Arotech Corporation
1229 Oak Valley Road
Ann Arbor, Michigan 48108
Dear Steven:
Re: Your Employment Agreement dated April 14, 2008
In connection with your Amended and Restated Employment Agreement with Electric Fuel (E.F.L.) Ltd. (the “Company”) dated April 14, 2008 (the “Agreement”), as amended, we wish to amend the Agreement in certain respects. All capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.
Section 7(b)(iv) of the Agreement requires us to fund into the Trust the entire Base Termination Pay of approximately $360,000. We acknowledge that we have not done so. You have informed us that you will allow us to pay $200,000 of the Retirement Payment into the Trust by issuing in your name 273,973 shares of our common stock (the “Shares”), such Shares being valued for this purpose at the closing price of our common stock on the Nasdaq Stock Market on April 17, 2009, which was $0.73 per share. The Shares will be held by us or our nominee in trust for you and will be either released to you or returned to us at the same time and under the same circumstances as the other funds in the Trust; provided, however, that the issuance to you of the Shares will fulfill the obligation of the Company to deposit $200,000 into the Account irrespective of any changes in the value of the Shares from this day forward. For the avoidance of doubt, we hereby specifically clarify that the Shares will be returned to us in the event that you are terminated for Cause.
In all other respects, the terms of the Agreement will govern the relationship between us.
If the foregoing is acceptable to you, kindly sign this letter in the space provided for your signature below, whereupon this letter will become a binding amendment to the Agreement.
Sincerely yours,
ELECTRIC FUEL (E.F.L.) LTD.
By: _______________________________
Ronen Badichi
General Manager
AROTECH CORPORATION
By: _______________________________
Robert S. Ehrlich
Chairman and Chief Executive Officer
____________________________________
Steven Esses
