Document:

WWW.EXFILE.COM, INC. -- 15238 -- ZAP -- EXHIBIT 10.47 TO FORM SB-2

    EXHIBIT
      10.47

     

     

     

    CERTIFICATE
      OF ADJUSTMENT

    8%
      SENIOR
      CONVERTIBLE NOTE

    

    

    I,
      Renay Cude, am the Secretary of ZAP,
      a California corporation (the “Company”), and am duly authorized to execute and
      deliver this Certificate on behalf of the Company.

    

    Pursuant
      to Section 4(e)(iv) of that
      certain 8% Senior Convertible Note (the “Note”) dated December 5, 2006 in favor
      of Gemini Master Fund, Ltd., in the amount of _______________, this Certificate
      constitutes notice of adjustment of certain provisions of the Note as a
      consequence of the declaration by the Company of a ten percent (10%) common
      stock dividend to common shareholders of record on February 15, 2007, payable
      February 28, 2007 (the “Effective Date”).  Capitalized terms are used
      herein as defined in the Note.  As of the Effective Date:

    

    
      	
              (1)

            	
              The
                Conversion Price as set forth in Section 1 of the Note shall become
                Ninety
                and Nine-tenths Cents ($0.909).

            

    

    

    
      	
              (2)

            	
              The
                Floor Price as set forth in Section 1 of the Note shall become Sixty-eight
                and Two-tenths Cents ($0.682).

            

    

    

    I
      declare
      under penalty of perjury under the laws of the United States that the foregoing
      is true and correct.

     

    Executed
      this 30th day of April, 2007 at Santa Rosa, California.

     

    
      	 	
               

               

               

              ________________________________

              Renay
                Cude, SecretaryWWW.EXFILE.COM, INC. -- 15238 -- ZAP -- EXHIBIT 10.48 TO FORM SB-2

    EXHIBIT
      10.48

     

     

     

    CERTIFICATE
      OF ADJUSTMENT

    8%
      SENIOR
      CONVERTIBLE NOTE

    

    

    I,
      Renay Cude, am the Secretary of ZAP,
      a California corporation (the “Company”), and am duly authorized to execute and
      deliver this Certificate on behalf of the Company.

    

    Pursuant
      to Sections 1 and 4(e)(iv) of
      that certain 8% Senior Convertible Note (the “Note”) dated February 20, 2007 in
      favor of Gemini Master Fund, Ltd., in the amount of ______________________,
      this
      Certificate constitutes notice of adjustment of certain provisions of the Note
      as a consequence of the declaration by the Company of a ten percent (10%) common
      stock dividend to common shareholders of record on February 15, 2007, payable
      February 28, 2007 (the “Effective Date”).  Capitalized terms are used
      herein as defined in the Note.  As of the Effective Date:

    

    (1)           The
      Conversion Price as set forth in Section 1 of the Note shall become Ninety
      and
      Nine-tenths Cents ($0.909).

    

    (2)           The
      Floor Price as set forth in Section 1 of the Note shall become Sixty-eight
      and
      Two-tenths Cents ($0.682).

    

     I
      declare under penalty of perjury under the laws of the United States that the
      foregoing is true and correct.

     

     Executed
      this 30th day of April, 2007 at Santa Rosa, California.

     

    
      	 	
               

               

               

              ________________________________

              Renay
                Cude, SecretaryWWW.EXFILE.COM, INC. -- 15238 -- ZAP -- EXHIBIT 10.49 TO FORM SB-2

    EXHIBIT
      10.49

     

     

     

     

     

     

    CERTIFICATE
      OF ADJUSTMENT

    WARRANT
      TO PURCHASE COMMON STOCK OF ZAP

    

    

    I,
      Renay Cude, am the Secretary of ZAP,
      a California corporation (the “Company”), and am duly authorized to execute and
      deliver this Certificate on behalf of the Company.

    

    Pursuant
      to Section 6(e)(iv) of that
      certain Warrant No. 1 to Purchase Common Stock of ZAP (the “Warrant”) dated
      December 5, 2006 in favor of _______________________ for _____________________
      shares of the Company’s common stock, this Certificate constitutes notice of
      adjustment of certain provisions of the Warrant as a consequence of the
      declaration by the Company of a ten percent (10%) common stock dividend to
      common shareholders of record on February 15, 2007, payable February 28, 2007
      (the “Effective Date”).  Capitalized terms are used herein as defined
      in the Warrant.  As of the Effective Date:

    

    (1)           The
      Exercise Price as set forth in Section 1 of the Warrant shall become One Dollar
      ($1.00).

    

    (2)           The
      number of shares issued upon full exercise of the Warrant shall be ___________
      shares.

    

     I
      declare under penalty of perjury under the laws of the United States that the
      foregoing is true and correct.

     

     Executed
      this 30th day of April, 2007 at Santa Rosa, California.

     

    
      	 	
               

              ________________________________

              Renay
                Cude, SecretaryWWW.EXFILE.COM, INC. -- 15238 -- ZAP -- EXHIBIT 10.50 TO FORM SB-2

    EXHIBIT
      10.50

     

     

    CERTIFICATE
      OF ADJUSTMENT

    
      WARRANT
        TO PURCHASE COMMON STOCK OF ZAP

      

      

      I,
        Renay Cude, am the Secretary of ZAP,
        a California corporation (the “Company”), and am duly authorized to execute and
        deliver this Certificate on behalf of the Company.

      

      Pursuant
        to Section 6(e)(iv) of that
        certain Warrant No. 1A to Purchase Common Stock of ZAP (the “Warrant”) dated
        February 20, 2007 in favor of _________________ for ______________ shares
        of the
        Company’s common stock, this Certificate constitutes notice of adjustment of
        certain provisions of the Warrant as a consequence of the declaration by
        the
        Company of a ten percent (10%) common stock dividend to common shareholders
        of
        record on February 15, 2007, payable February 28, 2007 (the “Effective
        Date”).  Capitalized terms are used herein as defined in the
        Warrant.  As of the Effective Date:

      

      (1)           The
        Exercise Price as set forth in Section 1 of the Warrant shall become One
        Dollar
        and Twenty Cents ($1.20).

      

      (2)           The
        number of shares issued upon full exercise of the Warrant shall be
        _______________ shares.

      

      I
        declare
        under penalty of perjury under the laws of the United States that the foregoing
        is true and correct.

       

      Executed
        this 30th day of April, 2007 at Santa Rosa, California.

       

    

    
      	 	
               

              ________________________________

              Renay
                Cude, SecretaryWWW.EXFILE.COM, INC. -- 15238 -- ZAP -- EXHIBIT 10.51 TO FORM SB-2

    EXHIBIT
      10.51

     

     

    Execution
      Copy

    

    

    AMENDMENT
      AGREEMENT

    

    This
      Amendment Agreement (this “Agreement”), dated as of
      June 26, 2007, is entered into by and among ZAP, a California corporation (the
      “Company”), and each of the entities whose names
      appear on the signature pages hereof (each, an
“Investor” and, collectively, the
“Investors”).  Capitalized terms used
      in
      this Agreement and not otherwise defined have the respective meanings ascribed
      thereto in the Securities Purchase Agreement (as defined below).

    

    

    R
      E C I T A L S:

    

    WHEREAS,
      the Company and certain Investors are parties to that certain Securities
      Purchase Agreement, dated as of December 5, 2006 (the
“Securities Purchase
      Agreement”), pursuant to which the Company issued 8% Senior
      Convertible Notes (the “Original Notes”) and Warrants
      (the “Original Warrants”) to such
      Investors;

    

    WHEREAS,
      the Company and the Investors
      are parties to that certain Purchase and Amendment Agreement, dated as of
      February 20, 2007 (the “Purchase and Amendment
      Agreement”), pursuant to which the Company issued additional 8%
      Senior Convertible Notes (the “Additional Notes” and,
      collectively with the Original Notes, the “Notes”) and
      additional Warrants (the “Additional Warrants” and,
      collectively with the Original Warrants, the
“Warrants”) to the Investors;

    

    WHEREAS,
      on January 2, 2007, the Company sold shares of Common Stock for per share
      consideration less than the Conversion Price (as defined in the Notes) and
      the
      Exercise Price (as defined in the Warrants) in effect on such date, and as
      a
      result of such issuance, the Investors are entitled to certain adjustments
      to
      their Notes and Warrants;

    

    WHEREAS,
      the Company is required to make certain payments of principal on the Notes
      on
      June 1, 2007 and July 1, 2007, and the Company has requested that the Investors
      defer such payment obligations until August 1, 2007;

    

    WHEREAS,
      the Company and the Investors
      are parties to that certain Registration Rights Agreement, dated as of December
      5, 2006, as amended by the Purchase and Amendment Agreement (the
“Registration Rights Agreement”), pursuant to which
      the Company is (i) obligated to register 200% of the shares of the Common Stock
      issuable upon conversion in full of the Notes and exercise in full of the
      Warrants, and (ii) prohibited from including any other securities of the Company
      in any such registration;

    

    WHEREAS,
      (i) the Company has certain registration obligations under the Registration
      Rights Agreement and the Company has requested that the Investors defer such
      registration obligations, (ii) the aggregate accrued and unpaid liquidated
      damages for the Company’s delay in performing such registration obligations as
      of the Filing Deadline (as defined below) is 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    approximately
      $113,000, and (iii) the Company has requested that the Investors:  (x)
      accept an aggregate of 141,750 shares of restricted Common Stock in lieu of
      cash
      as payment for such liquidated damages, subject to adjustment as set forth
      in
Section 4.1 below, (y) reduce the initial number of
      shares of Common Stock required to be registered under the Registration Rights
      Agreement to the sum of (A) 141,750 and (B) 130% of the total number of shares
      of Common Stock issuable under (1) the Notes, (2) the Warrants, and (3) the
      warrants issuable under this Agreement, and (z) permit the Company to include
      certain additional specified securities in any registration statement filed
      by
      the Company in connection with its registration obligations under the
      Registration Rights Agreement; and

    

    WHEREAS,
      in order to induce the
      Investors to agree to the Company’s requests described in the foregoing
      recitals, the Company has offered to issue and deliver to the Investors, for
      no
      additional consideration, an aggregate of 200,000 additional warrants having
      a
      per share exercise price of $1.10 and a term of five years.

    

    A
      G R E E M E N T:

    

    NOW,
      THEREFORE, in consideration of the
      foregoing and subject to the terms and conditions herein contained, the parties
      hereto agree as follows:

    

    1.            CERTAIN
      ADJUSTMENTS TO NOTES AND WARRANTS.

    

    The
      Company hereby agrees and confirms
      that:

    

    (a)           The
      Conversion Price in effect as of the date hereof for each Note is $0.727
      (subject to adjustments as provided in the Notes).

    

    (b)           The
      Floor Price (as defined in the Notes) in effect as of the date hereof for each
      Note is $0.682 (subject to adjustments as provided in the Notes).

    

    (c)           The
      Exercise Price in effect as of the date hereof for each Original Warrant is
      $0.80 (subject to adjustments as provided in the Warrants).

    

    (d)           The
      total number of shares of Common Stock for which each Investor’s Original
      Warrant is exercisable as of the date hereof is set forth opposite each
      Investor’s name on Exhibit A (subject to adjustments
      as provided in the Warrants).

    

    2.           
       NEW WARRANTS.

    

    Concurrently
      with the execution and delivery of this Agreement, the Company shall execute
      and
      deliver to each Investor, for no additional consideration, a warrant in the
      form
      attached hereto as Exhibit B (each, a “New
      Warrant” and collectively, the “New
      Warrants”) exercisable into the number of shares of Common Stock
      set forth opposite such Investor’s name on Exhibit
      A.  The term “Warrants” as used in the Registration
      Rights Agreement and the Notes shall be deemed to include the New
      Warrants.  The provisions of Section 2.5 of the Securities

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Purchase
      Agreement relating to the removal of restrictive legends shall apply to any
      certificates representing shares of Common Stock into which the New Warrants
      are
      exercisable.

    

    3.           
       DEFERRAL OF PRINCIPAL PAYMENTS ON THE NOTES.

    

    3.1           The
      definition of “Scheduled Principal Payment Date” as set forth in Section 1 of
      each of the Notes is hereby amended and restated in its entirety to read as
      follows:

    

    “‘Scheduled
      Principal Payment Date’ means the first day of each calendar
      month, with the first Scheduled Principal Payment Date occurring on August
      1,
      2007, provided, that if any of such days in any year is not a Business
      Day, then the Scheduled Principal Payment Date shall be the Business Day
      immediately following such date.”

    

    3.2           For
      the sole purpose of the Scheduled Principal Payment Date occurring on August
      1,
      2007, and notwithstanding Section 2(a)(iii) of each of the Notes, each Investor
      hereby consents to the Company’s exercise of the Principal Stock Option (as
      defined in the Notes) so long as (A) clauses (ii) through (v) of the Equity
      Conditions (as defined in the Notes) have been satisfied in full on such
      Scheduled Principal Payment Date and each of the ten (10) Trading Days
      immediately preceding such date (it being understood that neither (x) the
      deferral of principal payments on the Notes described in Section
      3 of this Agreement, (y) the deferral of registration obligations
      described in Section 4.1 of this Agreement, nor (z)
      the January 2, 2007 issuance of Common Stock that resulted in the adjustments
      described in Section 1 of this Agreement, shall cause
      the clause (v) of the Equity Conditions in the Notes not to have been satisfied)
      and (B) the registration statement covering the number of Registrable Securities
      as required by the Registration Rights Agreement and this Agreement shall have
      been declared effective for at least one Trading Day preceding such Scheduled
      Principal Payment Date and be available to the Investors.

    

    3.3           For
      the sole purpose of the Scheduled Principal Payment Date occurring on August
      1,
      2007, and notwithstanding Section 2(a)(iv) of each of the Notes, each Investor
      hereby agrees that a Principal Stock Option may be exercised by the Company
      so
      long as a Principal Stock Option Notice is delivered to each Investor on or
      before July 31, 2007.

    

    3.4           The
      Company acknowledges and agrees that the failure by the Company to make a
      Principal Payment (as defined in the Notes) on August 1, 2007 will constitute
      an
      immediate “Event of Default” under each Note (without notice or any other action
      by the Investor holding such Note).

    

    4.            
      REGISTRATION RIGHTS AGREEMENT.

    

    4.1           Payment
      of Accrued Liquidated Damages.  Each Investor hereby agrees to
      accept, in consideration of granting the Company the right to defer its
      registration obligations under the Registration Rights Agreement, in lieu of
      a
      cash payment of its pro rata share of liquidated damages in an amount of
      approximately $113,000, the number of shares of restricted Common Stock set
      forth opposite its name on Exhibit A (the
“Registration Default Shares”).  The

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Company
      shall deliver to each Investor a certificate representing the Registration
      Default Shares issuable to such Investor within three (3) Business Days
      following the execution of this Agreement.  In the event the
      registration statement required to be filed by the Company pursuant to the
      Registration Rights Agreement is filed prior to the Filing Deadline, each
      Investor shall, upon the request of the Company, exchange the certificate
      representing its Registration Default Shares for a new certificate representing
      a number of shares of restricted Common Stock (the “New Default
      Shares”) equal to its pro rata share of liquidated damages
      calculated as of the actual filing date of the registration statement divided
      by $0.80.  The provisions of Section 2.5 of the Securities
      Purchase Agreement relating to the removal of restrictive legends shall apply
      to
      the certificates representing the Registration Default Shares and the New
      Default Shares.  Notwithstanding the foregoing, it shall be a
      Registration Default (and additional liquidated damages shall begin to accrue
      as
      provided in Section 2(d) of the Registration Rights Agreement) if the Company
      fails to timely meet the Filing Deadline (as amended herein).

    

    4.2           Amendments
      to the Registration Rights Agreement.

    

    (a)           The
      term “Registrable Securities” as defined in the Registration Rights Agreement
      shall be deemed to include all of the Common Stock for which the New Warrants
      are exercisable and all of the Registration Default Shares issuable to the
      Investors hereunder.

    

    (b)           The
      definition of “Filing Deadline” as set forth in Section 1 of the Registration
      Rights Agreement is hereby amended and restated in its entirety to read as
      follows:

    

    “‘Filing
      Deadline’ means July 9, 2007.”

    

    (c)           The
      definition of “Registration Deadline” as set forth in Section 1 of the
      Registration Rights Agreement is hereby amended and restated in its entirety
      to
      read as follows:

    

    “‘Registration
      Deadline’ means the earlier of (i) ninety (90) days after the date
      on which the Registration Statement required to be filed pursuant to
Section 2(a) of this Agreement is filed with the
      Commission and (ii) October 8, 2007.”

    

    (d)           The
      first sentence of Section 2(a) of the Registration Rights Agreement is hereby
      amended and restated in its entirety to read as follows:

    

    “On
      or
      before the Filing Deadline, the Company shall prepare and file with the
      Commission a Registration Statement on Form SB-2 as a “shelf” registration
      statement under Rule 415 covering the resale of a number of shares of
      Registrable Securities equal to the sum of (i) 141,750 and (ii) one hundred
      thirty percent (130%) of the number of shares of Common Stock issuable upon
      conversion in full of the Notes and exercise in full of the Warrants and the
      New
      Warrants (such number to be determined without regard to any restriction on
      such
      conversion or exercise).”

    

    (e)           The
      last sentence of Section 2(f) of the Registration Rights Agreement is hereby
      amended and restated to read in its entirety as follows:

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “In
      no event shall the Company include
      any securities other than Registrable Securities and the securities disclosed
      on
      Schedule 3(e) to the Amendment Agreement, dated as of June 26, 2007, by and
      among the Company and the Investors named therein, on any Registration Statement
      filed by the Company on behalf of the Holders pursuant to the terms
      hereof.”

    

    5.           
       AMENDMENTS TO THE ORIGINAL AND ADDITIONAL
      WARRANTS.

    

    5.1           The
      first sentence of Section 2 of each of the Warrants is hereby amended and
      restated in its entirety to read as follows:

    

    “Upon
      receipt of an Exercise Notice pursuant to Section 1 of
      this Warrant, the Company shall, (A) in the case of a Cash Exercise (as defined
      below) no later than the close of business on the later to occur of (i) the
      sixth (6th) Business Day following the Exercise Date set forth in such Exercise
      Notice and (ii) the third (3rd) Business Day following the date on which the
      Company has received payment of the Exercise Price, (B) in the case of a
      Cashless Exercise (as defined below), no later than the close of business on
      the
      sixth (6th) Business Day following the Exercise Date set forth in such Exercise
      Notice, and (C) with respect to Warrant Shares that are the subject of a Dispute
      Procedure, the close of business on the sixth (6th) Business Day following
      the
      determination made pursuant to Section 1(b) of this
      Warrant (each of the dates specified in the foregoing clauses
      (A), (B) or
(C) being
      referred to as a “Delivery
      Date”), issue and deliver or cause to be delivered to the Holder
      the number of Warrant Shares as shall be determined as provided
      herein.”

    

    5.2           Section
      3(b) of each of the Warrants is hereby amended and restated in its entirety
      to
      read as follows:

    

    “In
      addition to its rights under Section 3(a) of this
      Warrant, the Holder shall have the right to pursue any other equitable remedy
      available to it, including, without limitation, a decree of specific performance
      and/or injunctive relief.”

    

    5.3           The
      following definition shall apply to the term “Market Price” as it is used in
      each of the Warrants:

    

    “Market
      Price” means, the VWAP as of the Exercise Date (or if the Exercise
      Date is not a Trading Day, then the VWAP immediately preceding such Exercise
      Date).

    

    5.4           Section
      6 of each of the Warrants is hereby amended with the addition of a new
      Section(g) that reads as follows:

    

    “(g)  Duration
      of Obligations.  The provisions of this Section
      6 shall terminate upon the earlier of the Expiration Date and
      the
      exercise in full of this Warrant.”

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    6.            
      AMENDMENT TO THE NOTES.

    

    Section
      4 of each of the Notes is
      hereby amended with the addition of a new Section(g) that reads as
      follows:

    

    “(g)           Duration
      of Obligations.  The provisions of this Section
      4 shall terminate upon the satisfaction of all payment and other
      obligations of the Company under this Note.”

    

    7.        
          REPRESENTATIONS AND WARRANTIES OF EACH
      INVESTOR.

    

    Each
      Investor hereby severally and not
      jointly represents and warrants to the Company as of the date
      hereof:

    

    7.1           Organization.  Such
      Investor is duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its incorporation or organization.

    

    7.2           Authorization.  Such
      Investor has the requisite corporate power and authority to execute, deliver
      and
      perform this Agreement.

    

    7.3           Enforceability.  This
      Agreement constitutes such Investor’s valid and legally binding obligation,
      enforceable in accordance with its terms, subject to (i) applicable bankruptcy,
      insolvency, fraudulent transfer, reorganization, moratorium or other similar
      laws of general application relating to or affecting the enforcement of
      creditors’ rights generally and (ii) general principles of equity.

    

    7.4           No
      Conflicts.  The execution, delivery and performance of this
      Agreement does not and will not conflict in any material respect with any laws
      applicable to such Investor or any of the organizational documents of such
      Investor.

    

    7.5           Accredited
      Investor.  Such Investor (i) is an “accredited investor” as that
      term is defined in Rule 501 of Regulation D and (ii) is acquiring the securities
      being issued under this Agreement solely for its own account and not with a
      present view to the public resale or distribution of all or any part thereof,
      except pursuant to sales that are registered under, or exempt from the
      registration requirements of, the Securities Act and/or sales registered under
      the Securities Act; provided, however, that in making such
      representation, such Investor does not agree to hold such securities for any
      minimum or specific term and reserves the right to sell, transfer or otherwise
      dispose of such securities at any time in accordance with the provisions of
      this
      Agreement, the other Transaction Documents and with Federal and state securities
      laws applicable to such sale, transfer or disposition.

    

    7.6           Limitations
      on Disposition.  Such Investor acknowledges that, except as
      provided in the Registration Rights Agreement, in this Agreement and in the
      other Transaction Documents, the securities being issued under this Agreement
      have not been and are not being registered under the Securities Act and may
      not
      be transferred or resold without registration under the Securities Act or unless
      pursuant to an exemption therefrom.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    7.7           Reliance
      on Exemptions.  Such Investor understands that the securities
      being issued under this Agreement are being issued in reliance upon specific
      exemptions from the registration requirements of U.S. federal and state
      securities laws and that the Company is relying upon the truth and accuracy
      of
      the representations and warranties of such Investor set forth in this
Section 7 in order to determine the availability of
      such exemptions and the eligibility of such Investor to acquire such
      securities.

     

    8.          
        REPRESENTATIONS AND WARRANTIES OF THE
      COMPANY.

    

    The
      Company hereby represents and
      warrants to each Investor as of the hereof:

    

    8.1           Organization.  The
      Company is duly organized, validly existing and in good standing under the
      laws
      of the State of California.

    

    8.2           Authorization.  The
      Company has the requisite corporate power and authority to execute, deliver
      and
      perform this Agreement and the New Warrants.  All corporate action on
      the part of the Company by its officers, directors and shareholders necessary
      for the authorization, execution and delivery of, and the performance by the
      Company of its obligations under this Agreement and the New Warrants has been
      taken, and no further consent or authorization of any other party is
      required.

    

    8.3           Enforceability.  This
      Agreement and the New Warrants constitute the Company’s valid and legally
      binding obligation, enforceable in accordance with its terms, subject to (i)
      applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
      moratorium or other similar laws of general application relating to or affecting
      the enforcement of creditors’ rights generally and (ii) general principles of
      equity.

    

    8.4           No
      Conflicts.  The execution, delivery and performance of this
      Agreement and the New Warrants, and the consummation of the transactions
      contemplated hereby and thereby, will not result in any violation of any
      provisions of any of the Company’s organizational documents or in a default
      under any provision of any instrument or contract to which the Company is a
      party or by which any of its assets are bound, or in violation of any provision
      of any Governmental Requirement applicable to the Company or be in conflict
      with
      or constitute, with or without the passage of time and giving of notice, either
      a default under any such provision, instrument or contract or an event which
      results in the creation of any Lien upon any assets of any of the Company or
      the
      triggering of any preemptive or anti-dilution rights (including without
      limitation pursuant to any “reset” or similar provisions) or rights of first
      refusal or first offer.

    

    8.5           Valid
      Issuance.  The New Warrants have been duly authorized and, when
      issued and delivered in accordance with the terms of this Agreement, will be
      duly and validly issued, free and clear of any Liens imposed by or through
      the
      Company.  The Registration Default Shares have been duly authorized
      and reserved for issuance, and will be duly and validly issued, fully paid
      and
      nonassessable, free and clear of any Liens imposed by or through the
      Company.  The shares of Common Stock into which the New Warrants are
      exercisable have been duly authorized and reserved for issuance and, when issued
      and delivered in accordance with the terms of the New Warrants, will be duly
      and
      validly issued, fully paid and nonassessable, free and clear of any Liens
      imposed by or through the Company.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    9.         
      MISCELLANEOUS.

    

    9.1           Severability.  In
      the event that any provision of this Agreement becomes or is declared by a
      court
      of competent jurisdiction to be illegal, unenforceable or void, this Agreement
      shall continue in full force and effect without said provision;
provided that in such case the parties shall negotiate in good faith to
      replace such provision with a new provision which is not illegal, unenforceable
      or void, as long as such new provision does not materially change the economic
      benefits of this Agreement to the parties.

    

    9.2           Successors
      and Assigns.  The terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      permitted assigns of the parties.  Nothing in this Agreement, express
      or implied, is intended to confer upon any party other than the parties hereto
      or their respective successors and permitted assigns any rights, remedies,
      obligations or liabilities under or by reason of this Agreement, except as
      expressly provided in this Agreement. An Investor may assign its rights and
      obligations hereunder, as long as, as a condition precedent to such transfer,
      the transferee executes an acknowledgment agreeing to be bound by the applicable
      provisions of this Agreement, in which case the term “Investor” shall be deemed
      to refer to such transferee as though such transferee were an original signatory
      hereto.  The Company may not assign its rights or obligations under
      this Agreement.

    

    9.3           No
      Reliance.  Each party acknowledges that (i) it has such knowledge
      in business and financial matters as to be fully capable of evaluating this
      Agreement and the transactions contemplated hereby and thereby, (ii) it is
      not
      relying on any advice or representation of any other party in connection with
      entering into this Agreement or such transactions (other than the
      representations made in this Agreement), (iii) it has not received from any
      other party any assurance or guarantee as to the merits (whether legal,
      regulatory, tax, financial or otherwise) of entering into this Agreement or
      the
      performance of its obligations hereunder and thereunder, and (iv) it has
      consulted with its own legal, regulatory, tax, business, investment, financial
      and accounting advisors to the extent that it has deemed necessary, and has
      entered into this Agreement based on its own independent judgment and, if
      applicable, on the advice of such advisors, and not on any view (whether written
      or oral) expressed by any other party.

    

    9.4           Independent
      Nature of Investors’ Obligations and Rights.  The obligations of
      each Investor hereunder are several and not joint with the obligations of the
      other Investors hereunder, and no Investor shall be responsible in any way
      for
      the performance of the obligations of any other Investor hereunder. The Company
      acknowledges and agrees that nothing contained herein and no action taken by
      any
      Investor pursuant hereto or thereto, shall be deemed to constitute the Investors
      as a partnership, an association, a joint venture or any other kind of entity,
      or a “group” as described in Section 13(d) of the Exchange Act of 1934, as
      amended, or create a presumption that the Investors are in any way acting in
      concert with respect to such obligations or the transactions contemplated by
      this Agreement.  Each Investor has been represented by its own
      separate counsel in connection with the transactions contemplated hereby, shall
      be entitled to protect and enforce its rights, including without limitation
      rights arising out of this Agreement, individually, and shall not be required
      to
      join any other Investor as an additional party in any proceeding for such
      purpose.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    9.5           Injunctive
      Relief.  The Company acknowledges and agrees that a breach by it
      of its obligations hereunder will cause irreparable harm to each Investor and
      that the remedy or remedies at law for any such breach will be inadequate and
      agrees, in the event of any such breach, in addition to all other available
      remedies, such Investor shall be entitled to an injunction restraining any
      breach and requiring immediate and specific performance of such obligations
      without the necessity of showing economic loss or the posting of any
      bond.

    

    9.6           Governing
      Law; Jurisdiction; Waiver of Jury Trial.  (a)  This
      Agreement shall be governed by and construed under the laws of the State of
      California applicable to contracts made and to be performed entirely within
      the
      State of California. Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in the City and County
      of
      San Diego for the adjudication of any dispute hereunder or any other Transaction
      Document or in connection herewith or therewith or with any transaction
      contemplated hereby or thereby, and hereby irrevocably waives, and agrees not
      to
      assert in any suit, action or proceeding, any claim that it is not personally
      subject to the jurisdiction of any such court, that such suit, action or
      proceeding is brought in an inconvenient forum or that the venue of such suit,
      action or proceeding is improper.  Each party hereby irrevocably
      waives personal service of process and consents to process being served in
      any
      such suit, action or proceeding by mailing a copy thereof to such party at
      the
      address in effect for notices to it under this Agreement and agrees that such
      service shall constitute good and sufficient service of process and notice
      thereof.  Nothing contained herein shall be deemed to limit in any way
      any right to serve process in any manner permitted by law.

    

    (b)
      EACH PARTY TO THIS AGREEMENT
      ACKNOWLEDGES AND AGREES THAT ANY DISPUTE OR CONTROVERSY THAT MAY ARISE UNDER
      THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE
      COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY HEREBY IRREVOCABLY
      AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY
      IN
      RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
      TO
      THIS AGREEMENT, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT OR
      THE
      OTHER TRANSACTION DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
      THEREBY.

    

    9.7           Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, and all of which together shall constitute one and the
      same
      instrument.  This Agreement may be executed and delivered by facsimile
      transmission.

    

    9.8           Headings.  The
      headings used in this Agreement are used for convenience only and are not to
      be
      considered in construing or interpreting this Agreement.

    

    9.9           Notices.  Any
      notice, demand or request required or permitted to be given by the Company
      or
      the Investor pursuant to the terms of this Agreement shall be in writing and
      shall be deemed delivered (i) when delivered personally or by verifiable
      facsimile transmission, unless such delivery is made on a day that is not a
      Business Day, in which case such delivery will be deemed to be made on the
      next
      succeeding Business Day, (ii) on the next Business Day after timely delivery
      to
      an overnight courier and (iii) on the Business Day actually received if

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    deposited
      in the U.S. mail (certified or registered mail, return receipt requested,
      postage prepaid), addressed as follows:

    

    If
      to the
      Company:

    

    ZAP

    501
      Fourth Street

    Santa
      Rosa,
      California  95401

    Attn:  Chief
      Financial
      Officer                                                                

    Tel:           (707) 525-8658

    Fax:           (707)
      525-8692

    

    with
      a copy (which shall not constitute
      notice) to:

    

    Donahue
      Gallagher Woods LLP

    Suite
      1900

    300
      Lakeside Drive

    Oakland,
      CA 94612

    Attn:  Michael
      J. Dalton

    Tel:           (510)
      451-0544

    Fax:           (510)
      832-1486

    

    and
      if to
      any Investor, to such address for such Investor as set forth opposite such
      Investor’s name on Exhibit A, or as shall be
      designated by such Investor in writing to the Company in accordance with this
      Section 9.9.

    

    9.10           Entire
      Agreement; Amendments.  This Agreement, the New Warrants and the
      Transaction Documents constitute the entire agreement between the parties with
      regard to the subject matter hereof and thereof, superseding all prior
      agreements or understandings, whether written or oral, between or among the
      parties.  Except as expressly provided herein, neither this Agreement
      nor any term hereof may be amended or waived except pursuant to a written
      instrument executed by the Company and the holders of at least two-thirds (2/3)
      of the Registrable Securities then outstanding (without regard to any limitation
      on conversion or exercise).

    

    9.11           Fees
      and Expenses.  The Company and each Investor shall pay all costs
      and expenses that it incurs in connection with the negotiation, execution,
      delivery and performance of this Agreement or the other Transaction Documents,
      provided, however, that that the Company shall, concurrently with the
      execution of this Agreement, pay Gemini Strategies, LLC up to $5,000 in
      immediately available funds as reimbursement for its out-of-pocket expenses
      (including without limitation legal fees and expenses) incurred or to be
      incurred by it in connection with the negotiation, preparation, execution,
      delivery and performance of this Agreement and the New Warrants.

    

    [Signature
      Pages to Follow]

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first-above written.

    

    ZAP

    

    

    By:           /s/
      Steven M. Schneider____________

     Name:
      Steven M.
      Schneider

     Title:
      Chief Executive
      Officer

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first-above written.

    

    

    GEMINI
      MASTER FUND, LTD.

    

    By:           Gemini
      Strategies, LLC

    

    

    By:           /s/
      Steven W. Winters_________________

     Name:  Steven
      W.
      Winters

     Title:  President
      of
      the Investment Manager

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first-above written.

    

    

    GREY
      K
      FUND, LP

    

    By:           RNK
      Capital LLC

    

    

    By:           /s/
      Robert
      Koltun                             

     Name:  Robert
      Koltun

     Title:  Managing
      Member

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first-above written.

    

    

    GREY
      K
      OFFSHORE FUND, LTD.

    

    By:           RNK
      Capital LLC

    

    

    By:          
      /s/ Robert
      Koltun                           

     Name:  Robert
      Koltun

     Title:  Managing
      Member

    

    

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first-above written.

    

    

    GREY
      K
      OFFSHORE LEVERAGED FUND, LTD.

    

    By:           RNK
      Capital LLC

    

    

    By:          
      /s/ Robert
      Koltun                                

     Name:  Robert
      Koltun

     Title:  Robert
      Koltun

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Exhibit
      A to the

    Amendment
      Agreement

     

     

    
 

    SCHEDULE
      OF INVESTORS

    

    

    
      	
              Purchaser

            	
              Address

            	
              Original
                Warrants

            	
              New
                Warrants

            	
              Registration
                Default Shares

            	
              Legal
                Representative’s

              Address

            
	
              Gemini
                Master Fund, Ltd.

               

            	
              c/o
                Gemini Strategies, LLC

              12220
                El Camino Real Suite 400

              San
                Diego, CA

              92130-2091

              Attn:  Steven
                Winters

              Tel:   (858)
                480-2828

              Fax:  (858)
                509-8808

               

            	
              396,000

            	
              111,111

            	
              78,750

            	
              Mazzeo
                Song LLP

              708
                Third Avenue

              19th
                Floor

              NY,
                NY 10017

              David
                S. Song

              Tel:  212-599-0700

              Fax:  212-599-8400

            
	
              Grey
                K Fund, LP

            	
              c/o
                RNK Capital LLC

              527
                Madison Avenue

              6th
                Floor

              New
                York, NY  10022

              Attn:  Andrew
                Farago

              Tel:   (212)
                419-3967

              Fax:  (212)
                419-3950

               

            	
              53,421

            	
              22,230

            	
              15,755

            	 
	
              Grey
                K Offshore Fund, Ltd.

            	
              c/o
                RNK Capital LLC

              527
                Madison Avenue

              6th
                Floor

              New
                York, NY  10022

              Attn:  Andrew
                Farago

              Tel:   (212)
                419-3967

              Fax:  (212)
                419-3950

            	
              144,580

            	
              55,252

            	
              39,160

            	 
	
              Grey
                K Offshore Leveraged Fund, Ltd.

            	
              c/o
                RNK Capital LLC

              527
                Madison Avenue

              6th
                Floor

              New
                York, NY  10022

              Attn:  Andrew
                Farago

              Tel:   (212)
                419-3967

              Fax:  (212)
                419-3950

            	
              N/A

            	
              11,407

            	
              8,085

            	 

    

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3(e) TO THE

    

    AMENDMENT
      AGREEMENT

    

    
      	 	 	 	 	 	 	 	 	 
	 	 	 	
              Common
                Stock

            	
              Warrants

            	 	 	 	 
	
              Issue
                Date

            	
              Security

            	
              Type

            	
              Numbers
                of Shares

            	
              Numbers
                of Shares

            	
              10%
                Dividend

            	
              Adj
                No. Shares

            	
              Stockholders

            	
              Totals

            
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              60,000 
                

            	
              6,000 
                

            	
              66,000 
                

            	
              Diversified
                Equity Funding, L.P.

            	 
	
              1/2/2007 
                

            	
               Warrants

            	
              $1.20

            	 	
              120,000 
                

            	
              12,000 
                

            	
              132,000 
                

            	
              Diversified
                Equity Funding, L.P.

            	
              198,000 
                

            
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              60,000 
                

            	
              6,000 
                

            	
              66,000 
                

            	
              Diversified
                Strategies Fund, LLC

            	
              66,000 
                

            
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              45,000 
                

            	
              4,500 
                

            	
              49,500 
                

            	
              HES
                Gift Trust

            	 
	
              1/2/2007 
                

            	
               Warrants

            	
              $1.20

            	 	
              15,000 
                

            	
              1,500 
                

            	
              16,500 
                

            	
              HES
                Gift Trust

            	 
	
              1/2/2007 
                

            	
               Warrants

            	
              $1.20

            	 	
              1,000,000 
                

            	
              100,000 
                

            	
              1,100,000 
                

            	
              HES
                Gift Trust

            	
              1,166,000 
                

            
	
              10/20/2006 
                

            	
               Common
                Stock

            	
              $1.00

            	
              110,000 
                

            	 	
              11,000 

            	
              121,000 
                

            	
              Joe
                Gottlieb

            	
              121,000 
                

            
	
              10/20/2006 
                

            	
               Common
                Stock

            	
              $1.00

            	
              100,000 
                

            	 	
              10,000 
                

            	
              110,000 
                

            	
              Marleen
                Mulder

            	 
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              30,000 
                

            	
              3,000 
                

            	
              33,000 
                

            	
              Marleen
                Mulder

            	
              143,000 
                

            
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              30,000 
                

            	
              3,000 
                

            	
              33,000 
                

            	
              Randall
                Chuchill

            	 
	
              10/20/2006 
                

            	
               Common
                Stock

            	
              $1.00

            	
              100,000 
                

            	 	
              10,000 
                

            	
              110,000 
                

            	
              Randall
                Churchill

            	
              143,000 
                

            
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              100,000 
                

            	
              10,000 
                

            	
              110,000 
                

            	
              Raymond
                Markman

            	
              110,000 
                

            
	
              11/16/2004 
                

            	
               Warrants

            	
              $1.20

            	 	
              1,000,000 
                

            	
              100,000 
                

            	
              1,100,000 
                

            	
              The
                Banks Group LLC

            	 
	
              2/2/2007 
                

            	
               Common
                Stock

            	
              $0.92

            	
              217,391 
                

            	 	
              21,739 
                

            	
              239,130 
                

            	
              The
                Banks Group LLC

            	
              1,339,130 
                

            
	
              6/19/2006 
                

            	
               Warrants

            	
              $1.75

            	 	
              1,000,000 
                

            	
              100,000 
                

            	
              1,100,000 
                

            	
              Thomas
                Heideman

            	
              1,100,000 

            
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              30,000 
                

            	
              3,000 
                

            	
              33,000 
                

            	
              Wendy
                Spatz

            	 
	
              1/2/2007 
                

            	
               Warrants

            	
              $1.20

            	 	
              15,000 
                

            	
              1,500 
                

            	
              16,500 
                

            	
              Wendy
                Spatz

            	
              49,500 
                

            
	
              10/20/2006 
                

            	
               Warrants

            	
              $1.20

            	 	
              50,000 
                

            	
              5,000 
                

            	
              55,000 
                

            	
              William
                Courtright

            	
              55,000 
                

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	
              527,391 
                

            	
              3,555,000 
                

            	
              408,239 
                

            	
              4,490,630 
                

            	 	
              4,490,630 
                

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              4,082,391 
                

            	 	
              0 
                

            	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	
              52,739 
                

            	
              355,500 
                

            	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	
              580,130 
                

            	
              3,910,500 
                

            	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              4,490,630

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]