SETTLEMENT AGREEMENT
Exhibit
10.20
B
E T W E E N
Xxxxxxxx
Mercantile and Management, Inc.
(“SMMI”)
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(“Trackpower”)
WHEREAS SMMI is owed $121,952
(for unpaid past management services, advances made by SMMI to Trackpower and
expenses paid by SMMI on behalf of Trackpower) from Trackpower (collectively the
“Obligations”);
AND WHEREAS SMMI and
Trackpower have agreed to settle the Obligations owed by Trackpower to
SMMI;
AND WHEREAS the parties wish
to set out in this Agreement the terms, conditions and covenants of the parties
in consideration of settlement of the Obligations;
NOW THEREFORE the parties
hereto agree as follows:
1. Trackpower
agrees to issue SMMI forty million (40,000,000) restricted shares of its common
stock and cash payments of $81,952 over a ninety (90) day period as full and
complete settlement of the Obligations.
2. The
parties hereto agree to execute the Mutual Release which is
attached hereto as Schedule “A”.
3. The
parties agree that in the event that any term or condition herein or part
thereof shall be deemed void, invalid or enforceable by Court of competent
jurisdiction, the remaining terms and conditions or parts thereof shall remain
in full force and effect.
4. This
Agreement constitutes the entire agreement between the parties and supersedes
all prior representations or agreements related to this
Agreement. This Agreement shall be governed by the laws of the Province of Ontario.
Dated this ____ day
of February, 2008.
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TRACKPOWER,
INC.
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Per:________________________
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Name:
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Title
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XXXXXXXX
MERCANTILE AND MANAGEMENT INC.
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Per:________________________
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Name:
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Title
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SCHEDULE
"A"
MUTUAL
RELEASE
IN CONSIDERATION of
the satisfactory performance of the terms of settlement outlined in the attached
Settlement Agreement (the “Agreement”) and other good and valuable
consideration, and the receipt of cash payments described in the Agreement, the
undersigned, SMMI discharges Trackpower, including its affiliates, successors
and predecessors and all affiliated entities and the officers,
directors, employees and agents thereof, of and from all actions, causes of
actions, claims, demands and liabilities of every nature or kind whether arising
at common law or in equity, by contract, by tort or under any statute or
otherwise in any way related to or connected with the settlement of said
Obligations between SMMI and Trackpower.
AND IN FURTHER
CONSIDERATION of the Agreement and other good and valuable consideration
Trackpower hereby releases SMMI, including its affiliates, successors and
predecessors and all affiliated entities and the members, officers,
directors, employees and agents thereof, of and from all actions, causes of
actions, claims, demands and liabilities of every nature or kind whether arising
at common law or in equity, by contract, by tort or under any statute or
otherwise in any way related to or connected with the settlement of said
Obligations between Trackpower and SMMI.
THE PARTIES HEREBY
INDEMNIFY AND SAVE HARMLESS EACH OTHER from any and all claims or demands
arising out of or in any way connected with this Agreement.
THE PARTIES HEREBY
DECLARE that they fully understand the nature and terms of this Mutual Release
and that the acceptance of the consideration set out in the Agreement is for the
purpose of making full and final compromise, adjustment and settlement of all
claims as aforesaid.
THE PARTIES HEREBY
CONFIRM that they have been afforded an opportunity to obtain independent legal
advice to review the contents of the Agreement and this Mutual Release and
confirm that they are executing them voluntarily and without
duress.
THE PARTIES HEREBY
DECLARE that they fully understand and agree that should they hereafter make any
claim or demand or commence or threaten to commence any action or complaint
against the other party(ies), individually or jointly, for or by reason of any
cause, matter or thing, this document may be raised as an estoppel to any claim,
demand, action or complaint commenced in regard to the aforesaid.
THE PARTIES AGREE
that this Mutual Release shall enure to their benefit and shall be binding upon
their heirs, executors, administrators, successors and assigns.
Dated this
__________ day of February, 2008.
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TRACKPOWER,
INC.
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Per:________________________
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Name:
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Title
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XXXXXXXX
MERCANTILE AND MANAGEMENT INC.
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Per:________________________
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Name:
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Title
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