DISTRIBUTION AGREEMENTS

6 Months Ended

Jun. 30, 2014

NOTE 4 - DISTRIBUTION AGREEMENT

Distribution agreements are presented below (in thousands):

	June 30, 2014			December 31, 2013

Better World Products-related party	$	2,160		$	2,160
Jonway Auto CNG Products		5,969			-
Jonway Products		14,400			14,400
		22,529			16,560
Less amortization		(7,441	)		(6,721	)
	$	15,088		$	9,839

Amortization expense related to these distribution agreements for the three months ended June 30, 2014 and 2013 were $360,000 and $360,000, respectively. Amortization expense related to these distribution agreements for the six months ended June 30, 2014 and 2013 were $720,000 and $720,000, respectively. Amortization is based over the term of the agreements. There were no amortization expenses for CNG products as it has not yet been marketed in the first half of 2014.