ZAP (fka ZAAP)

[BottomBounce]

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Item 8.01 Other Events

Legal Proceedings

On March 3, 2014, the Superior Court of the State of California, County of Los Angeles, in the matter of Cathaya Capital L.P and Priscilla M. Lu, v. ZAP, Mark Abdou, Steven Schneider, et al, Case No. BC499106, granted the motion of Priscilla Lu to dismiss all claims asserted by Mark Abdou and Steven Schneider in their Second Amended Cross-Complaint against Ms. Lu, without leave to amend. As a result of the Court's ruling, five of the Abdou/Schneider causes of action have been dismissed, including all claims against Ms. Lu. In addition, the Court dismissed all tort claims against ZAP. However, the Court's ruling did not dismiss all claims against ZAP.

The Abdou/Schneider claims against ZAP for unpaid compensation were not before the Court and therefore were not affected by the Court's ruling and have not been dismissed. These contract-based claims are against ZAP only and do not allow for punitive damages.

The existence of this litigation was originally disclosed in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2012, filed April 16, 2013.