Commitments And Contingencies

6 Months Ended

Jun. 30, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE 17 – COMMITMENTS AND CONTINGENCIES

Employment agreement

     As of Jan 16, 2011, the Company entered into employment agreements with Benjamin Zhu. The agreement provides for an annual salary of $140,000 for each year for the term of the agreement with Mr. Zhu.

     On June 18, 2012, the Company also entered into an employment agreement with Charles Schillings as its Chief Operating Officer. The agreement provides for an annual salary of $144,000 for a three month initial term with an automatic extension of nine months. After one year, annual renewals will continue unless the agreement is terminated by the either party. On August 7, 2012, Mr. Schillings was appointed as the Co-Chief Executive Officer (Co-CEO) to lead U.S. and International operations alongside with Alex Wang, the Co-CEO for ZAP Jonway's China division.

Guarantees

     Jonway Auto guaranteed certain financial obligations of outside third parties including suppliers to support our business and economic growth. Guarantees will terminate on payment and/or cancellation of the obligation once it is repaid. A payment by us would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. Maximum potential payments under guarantees total $4,130 through June 30, 2012. Our performance risk under these guarantees is reviewed regularly, and has resulted in no changes to our initial valuations.