NOTE 6 - DISTRIBUTION AGREEMENTS

Distribution agreements as of December 31, 2015 and 2014 are presented below (in thousands):

	December 31, 2015			December 31, 2014


Better World Products-related party	$	2,160		$	2,160
CNG Products		-			1,000
Jonway Products		14,400			14,400
		16,560			17,560
Less amortization and impairment		(9,601	)		(8,161	)
	$	6,959		$	9,399

Amortization expenses related to these distribution agreements for the years ended December 31, 2015 and 2014 was $1.4 million. Amortization is based over the term of the agreements. As of December 31, 2015 and 2014, the company recognized an impairment loss of $1.0 million and $5.0 million for the distribution right of CNG Products, respectively. The estimated future amortization expense is as follows (in thousands):

Year ended December 31,

2016	$	1,440
2017		1,440
2018		1,440
2019		1,440
2020		1,199
Thereafter		-
Total	$	6,959

Distribution Agreement with Better World, Ltd

On January 15, 2010, ZAP entered into a Stock Purchase Agreement with a related party, Better World, Ltd., a British Virgin Islands company, whereby the Company issued 6 million shares of its common stock valued at $2.16 million in exchange for an agreement on terms relating to rights to the distribution of Better World products, such as charging stations for electric vehicles both in the U.S. and internationally. Priscilla Lu, the previous Chairman of the Board of Directors of ZAP, is also a director of Better World, Ltd.

Distribution Agreement with Goldenstone Worldwide Limited for Jonway Products

On October 10, 2010, ZAP entered into an International Distribution with Goldenstone Worldwide Limited as the distributor of Jonway products such as gasoline SUV's and gasoline and electric motor scooters, both in the U. S. and internationally. In connection with the distribution agreement the Company also issued 30 million shares of ZAP common stock valued at $14.4 million. The Jonway Group had previously granted exclusive worldwide distribution of Jonway products to Goldenstone Worldwide Limited. ZAP acquired a 51% equity interest in Jonway Auto but this equity interest did not include the worldwide distribution rights for Jonway Products. Therefore it was necessary for ZAP to acquire distribution rights for Jonway Products.

Distribution Agreement with Jonway Auto for CNG Products

On June 26, 2014, ZAP entered into an International Distribution with Jonway Auto as the distributor of Jonway Auto's compressed natural gas SUV and compressed natural gas minivan, both in the U.S. and internationally. In connection with the distribution agreement the Company also issued 61 million shares of ZAP common stock valued at $6.0 million to Jonway Group. For the year ended December 31, 2015 and 2014, the company recognized an impairment loss of $1.0 million and $5.0 million for the distribution right of CNG Products, respectively. As of December 31, 2015, the net carrying value of distribution rights with Jonway Auto for CNG products was nil.