NOTES PAYABLE - Note 10

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

NOTES PAYABLE - Note 10

NOTE 10 - NOTES PAYABLE

As of December 31, 2013 and 2012, the Company's notes payable consisted of the following:

		December 31,		December 31,
		2013		2012
				(Restated)
Former Executives of Nollec	$	145,000	$	290,000
The Cellular Network Communications Group, Inc.		205,937		-
Total	$	350,937	$	290,000

There was a note owed to the former executives of Nollec that was an incentive for key managers to remain with the Nollec after Zoom acquired it in 2010. The note neither bears interest nor is collateralized by any assets.

The Note due to CNCG carries an annual interest rate of 8.00% to be made in quarterly installments of $43,708. The Company's subsidiary Zoom Sub is currently in default of the note due to CNCG therefore the interest rate adjusted to 14.00%. The note amortizes and matures in October of 2014. The note is unsecured and is not guaranteed by Zoom Technologies, Inc. The note was previously classified as long term. Refer to "Note 12 - Long-Term Notes Payable" for additional details.