AMENDMENT AGREEMENT
Exhibit
99.1
AMENDMENT
AGREEMENT
ZAP
and Smart Automobile LLC (“SA”) agree to amend the Exclusive Purchase, License
and Supply Agreement dated April 19, 2004 (the “Agreement”) between the
parties to cancel the license provided for in the Agreement and to amend the
consideration to be paid to SA. As Daimler Chrysler has announced that they
will
be distributing a two-seat Smart Car in the near future, the license value
has
ceased to exist as contemplated by the Agreement.
It
is agreed that the cancellation of the license provided for in the Agreement
does not affect (i) ZAP’s ability to purchase Smart Cars from SA, (ii) the
exclusive distribution relationship between SA and ZAP provided for in the
Agreement and certain other agreements entered into subsequent to the Agreement,
or (iii) the transfer of DOT rights provided for in a July 14, 2006
agreement entered into between the parties.
The
continuing agreements are amended to provide that ZAP’s sole obligation to SA in
payment for the exclusive distribution right shall be a grant of a warrant
for
the purchase of 50,000 shares at $1.75 per share for every 100 Smart Cars
delivered should SA be successful in obtaining more Smart Cars for
ZAP.
This
simplified agreement amends all previous license, distribution or asset
agreements between the parties.
IT
IS SO AGREED:
August
30, 2006
/s/ Xxxxxx
Xxxxxxxxx
Smart
Automobile LLC
August
30, 2006
/s/ Xxxxxx
X. Xxxxxxxxx
ZAP
