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The following is an excerpt from a 10KSB SEC Filing, filed by ZAP on 4/2/2007.
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ZAP - 10KSB - 20070402 - COMPENSATION

ITEM 10. EXECUTIVE COMPENSATION.

EXECUTIVE COMPENSATION

The following executive compensation disclosure reflects all compensation awarded to, earned by or paid to the executive officers below for the fiscal year ended December 31, 2006. The following table summarizes all compensation for fiscal year 2006 received by our Chief Executive Officer, and the Company's two most highly compensated executive officers who earned more than $100,000 in fiscal year 2006.

                                                     SUMMARY COMPENSATION TABLE

                                                                                            Non-        Non-
                                                                                           Equity     qualified
                                                                                          Incentive   Deferred     All
                                                                                            Plan       Compen-    Other
                                                                   Stock         Option    Compen-      sation   Compen-
                                                                   Awards        Awards     sation     Earnings   sation
Name and principal position    Year     Salary ($)    Bonus ($)    ($) (1)       ($)(1)      ($)         ($)        ($)    Total ($)
---------------------------    ----     ----------    ---------    -------       ------      ---         ---        ---    ---------
Steven Schneider, CEO          2006      120,000         -         17,800       419,756       -           -          -      557,556

Gary Starr, Chairman           2006      120,000         -         17,800       419,756       -           -          -      557,556

Renay Cude, Secretary          2006       78,000         -         17,800       419,756       -           -          -      512,556


(1)  Stock awards are based on the stock price on the date of issue. Options/warrant awards were calculated using the following
     assumptions: dividend of 0, rate of 5.12% for warrants and 4.91% for options, expected life of 5 months for warrants and 6.75
     years for options, strike price of $1.00 for warrants and $0.91 for options, stock price of $0.91 and volatility of 149.75%.
     All option and warrant issuances were fully vested at time of issue.

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Employment Agreements

We currently have employment agreements with three of our Named Executive Officers as described below.

Steve Schneider, Chief Executive Officer

We entered into an employment agreement with Steve Schneider on October 1, 2003. The agreement provides that Mr. Schneider will serve as our Chief Executive Officer through October 1, 2008 and receive a salary, benefits and options equal to the highest paid employee of ZAP, but in no event less than $75,000 per year. Mr. Schneider's current salary is set at $120,000. In addition, the agreement provides that should ZAP become profitable, Mr. Schneider's salary will automatically be increased by 10% for every $100,000 in profits calculated on a quarterly basis. Mr. Schneider annually receives a grant of stock options or warrants equal to 1% of the outstanding common stock of ZAP at an exercise price equal to 110% of the market price on the date of grant. Mr. Schneider also receives all other benefits as are afforded to our employees and a Company car, or a car allowance of $5,000 per year in lieu of a Company car. In the event ZAP terminates his employment without cause, Mr. Schneider is entitled to his full salary for the remainder of the term of the agreement. Should ZAP elect to terminate Mr. Schneider's employment in the case of a merger or reclassify Mr. Schneider without cause prior to the expiration of the employment agreement, the Company must retain Mr. Schneider as an employee or consultant for a period of five years for an aggregate salary of $500,000, payable bi-monthly, or make a lump sum payment of $300,000. The agreement automatically renews for successive five year periods unless terminated by either party upon proper notice. On March 30, 2007, The Board of Directors of ZAP did approve the extension of the employment agreement with Mr. Schneider through October 1, 2013.

Gary Starr, Chairman of the Board

We entered into an employment agreement with Gary Starr on October 1, 2003. The agreement provides that Mr. Starr will serve as Chairman of the Board of Directors of ZAP through October 1, 2008 and receive a salary, benefits and options equal to the highest paid employee of ZAP, but in no event less than $75,000 per year. Mr. Starr's current salary is set at $120,000. In addition, the agreement provides that should ZAP become profitable, Mr. Starr's salary will automatically be increased by 10% for every $100,000 in profits, calculated on a quarterly basis. Mr. Starr annually receives a grant of stock options or warrants equal to 1% of the outstanding common stock of ZAP at an exercise price equal to 110% of the market price on the date of grant. Mr. Starr also receives all other benefits as are afforded to our employees and a Company car, or a car allowance of $5,000 per year in lieu of a Company car. In the event ZAP terminates his employment without cause, Mr. Starr is entitled to his full salary for the remainder of the term of the agreement. Should ZAP elect to terminate Mr. Starr's employment in the case of a merger or reclassify Mr. Starr without cause prior to the expiration of the employment agreement, the Company must retain Mr. Starr as an employee or consultant for a period of five years for an aggregate salary of $500,000, payable bi-monthly, or make a lump sum payment of $300,000. The agreement automatically renews for successive five year periods unless terminated by either party upon proper notice. On March 30, 2007, On March 30, 2007,The Board of Directors of ZAP did approve the extension of the employment agreement with Mr. Starr through October 1, 2013.

Renay Cude, Corporate Secretary

We entered into an employment agreement with Renay Cude on October 1, 2003. The agreement provides that Ms. Cude will serve as Corporate Secretary of ZAP through October 1, 2008 and receive a salary, benefits and options equal to the highest paid non corporate officer-employee of ZAP, but in no event less than $36,000 per year. Ms. Cude's current salary is set at $78,000. In addition, the agreement provides that should ZAP become profitable, Ms. Cude's salary will automatically be increased by 10% for every $100,000 in profits, calculated on a quarterly basis. Ms. Cude annually receives a grant of stock options or warrants equal to 1% of the outstanding common stock of ZAP at an exercise price equal to 110% of the market price on the date of grant. Ms. Cude also receives all other benefits as are afforded to our employees and a Company car, or a car allowance of $5,000 per year in lieu of a Company car. In the event ZAP terminates her employment without cause, Ms. Cude is entitled to her full salary for the remainder of the term of the agreement. Should ZAP elect to terminate Ms. Cude's employment in the case of a merger or reclassify Ms. Cude without cause prior to the expiration of the employment agreement, the Company must retain Ms. Cude as an employee or consultant for a period of five years for an aggregate salary of $250,000, payable bi-monthly, or make a lump sum payment of $150,000. The agreement automatically renews for successive five year periods unless terminated by either party upon proper notice. On March 30, 2007,The Board of Directors of ZAP did approve the extension of the employment agreement with Ms. Cude through October 1, 2013.

73

The following table sets forth certain information concerning stock option awards granted to our named executive officers.

--------------------------------------------------------------------------------------  --------------------------------------------
                                                    OPTION AWARDS                                                   STOCK AWARDS
                                                                                                             Equity
                                                                                                             incentive  Equity
                                                                                                             plan       incentive
                                                                                                             awards:    plan
                                                                                                             number     awards:
                                                                                        Number               of         Market or
                                                   Equity                               of                   unearned   payout
                                                   Incentive                            shares               shares,    value of
                                    Number of      Plan Awards:                         or units Market      units or   unearned
                      Number of     securities     Number of                            of stock value of    other      shares,
                      securities    underlying     Securities                           that     shares or   rights     units or
                      underlying    unexercised    underlying                           have     units of    that have  other rights
                      unexercised   options (#)    unexercised   Option     Option      not      stock that  not        that have
                      options (#)   Unexercis      unearned      exercise   expiration  vested   have not    vested     not vested
Name                  Exercisable   -able          options (#)   price ($)  date        (#)      vested ($)  (#)        ($)

Steve Schneider (1)   1,690,786     -              -             1.00        7/1/12

Steve Schneider (2)   200,000       -              -             0.25        7/5/12

Steve Schneider (2)   486,111       13,889         -             1.26       6/23/14

Steve Schneider (2)   428,877       85,775         -             1.32      11/16/14

Steve Schneider (2)   211,265       105,633        -             0.93        6/7/15

Steve Schneider (1)   355,424       -              -             0.91       8/11/16

Gary Starr (1)        1,470,671     -              -             1.00        7/1/12

Gary Starr (2)        116,667       -              -             1.20      12/19/11

Gary Starr (2)        150,000       -              -             0.25        7/5/12

Gary Starr (2)        486,111       13,889         -             1.26       6/23/14

Gary Starr (2)        428,877       85,775         -             1.32      11/16/14

Gary Starr (2)        211,265       105,633        -             0.93        6/7/15

Gary Starr (1)        355,424       -              -             0.91       8/11/16

Renay Cude (1)        1,525,786     -              -             1.00        7/1/12

Renay Cude (1)        161,700       -              -             0.50       12/2/13

Renay Cude (2)        48,611        1,389          -             1.26       6/23/14

Renay Cude (2)        428,877       85,775         -             1.32      11/16/14

Renay Cude (2)        211,265       105,633        -             0.93        6/7/15

Renay Cude (1)        355,424       -              -             0.91       8/11/16

William Hartman (1)   687,500       -              -             1.00        7/1/12

William Hartman (3)   41,667        8,333          -             1.32      11/16/14

William Hartman (3)   25,000        -              -             1.20      12/19/11

William Hartman (3)   72,917        2,083          -             1.26       6/23/14

William Hartman (1)   100,000       -              -             1.03       9/18/16

(1) The award represents warrants which are exercisable at the time of issuance.
(2) The award vests equally over 36 months from date of grant. The option has a ten year life. Issued per the employment agreements
(3) The award vests equally over 36 months from date of grant. The option has a ten year life.

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DIRECTOR COMPENSATION

The following director compensation disclosure reflects all compensation awarded to, earned by or paid to the directors below for the fiscal year ended December 31, 2006.

                                                                         Change in
                                                                         Pension
                       Fees                                              Value and
                       Earned                            Non-Equity      Nonqualified
                       or Paid      Stock      Option    Incentive Plan  Deferred             All Other
                       in Cash      Awards     Awards    Compensation    Compensation         Compensation
Name                   ($)          ($)        ($)       ($)             Earnings ($)         ($)             Total ($)
Raymond F. Byrne (1)   3,000        20,800                                                                     23,800

Peter H. Scholl (1)    3,000        20,800                                                                     23,800

(1) Both independent directors received a stock award with value of $17,800 for their service on the Board and $3,000 for attending Board meetings.

Compensation of Directors

Starting in April 2006, all directors received $500 and a grant of $500 of common stock for attendance at each Board meeting and each committee meeting. Directors are also reimbursed for out-of-pocket travel and other expenses incurred in attending Board and/or committee meetings. Prior to April 2006, we did not provide our directors with cash or other forms of compensation, although we did reimburse their out-of-pocket expenses. Each Director also received 20,000 shares of common stock in December 2006 as an additional compensation incentive .

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