Document:

EXHIBIT
10(k)

    SETTLEMENT
AGREEMENT

    RESPECTING SUMS DUE FROM
POWER SPORTS FACTORY TO ANDRETTTI IV

    AS OF October 23rd,
2009

    

    THIS SETTLEMENT AGREEMENT
(“Agreement”) is entered into as of this 23rd day of October, 2009 between Power
Sports Factory, Inc. (“PSF”) and Andretti IV, LLC (“Andretti IV”) (collectively
the “Parties).

    

    RECITALS

    

    A.           The
Parties are parties to an Exclusive Licensing Agreement dated May 15, 2007
wherein PSF has been, among other things, granted the rights to use the
“Andretti” name and personal publicity rights of several members of the Andretti
family in connection with the branding and sale of the “Andretti/Benelli” line
of motor scooters to be distributed by PSF (“Benelli Agreement”).

    

    B.           The
Parties are also parties to an Exclusive Licensing Agreement dated June 27, 2008
wherein PSF has been, among other things, granted the rights to use the
“Andretti” name and personal publicity rights of several members of the Andretti
family in connection with the branding and sale of the “Andretti/Yamati” line of
motor scooters to be distributed by PSF (“Yamati Agreement”).

    

    C.           Both
the Benelli Agreement and the Yamati Agreement contain provisions relating to
compensation payable to Andretti IV in consideration for the grant of rights
which included the requirement for PSF to pay Andretti IV a minimum guaranteed
amount per year of said Agreements.

    

    D.           As
of July 31st, 2009, PSF owes Andretti IV Nine Hundred Fifty Thousand Dollars
($950,000) pursuant to the Benelli Agreement and Three Hundred Ninety Thousand
Dollars ($390,000) pursuant to the Yamati Agreement for a total of One Million
Three Hundred Forty Thousand Dollars ($1,340,000) as minimum guaranteed amounts
owing pursuant to said Agreements (“the December 31, 2008/2009
Debt”).

    

    E.           While
the Benelli Agreement and the Yamati Agreement shall be modified to represent a
$65 payment per bike starting on January 1st 2010,
the Parties wish to settle the December 31, 2008/2009 Debt as set forth in this
Agreement.

    

    NOW,
THEREFORE, in consideration of the mutual promises herein and the fulfillment of
all of them, the sufficiency of which is acknowledged by the Parties, it is
agreed as follows:

    

    AGREEMENT

    

    1.           Settlement
of December 31, 2008/2009 Debt:  In full settlement of the
December 31, 2008/2009 Debt, PSF shall effectuate the following:

    

    
      	
              a.       

            	
              Pay
      to Andretti IV the sum of One Hundred Fifty Thousand Dollars
      ($150,000).  Payable $30,000 on October 23rd, 60,000
      on or before December 1st,
      2009 and $60,000 on or before January 1st,
      2010.

            

    

    

    
      	
              b.       

            	
              All
      future payments will be made on a per bike basis of $65 per bike sold.
      Payment will be made on a quarterly basis 45 days after PSF closes its
      financial quarter.

            

    

    

    
      	
              c.       

            	
              The
      payment of this sum will be made via wire transfer and received by Andretti
      IV not later than Friday, October 23rd, 2009.

            
	 	 
	      
              d.       

            	Execute
      an Amendment to the Benelli Agreement and to the Yamati Agreement which
      will document a change all future years of contract to contain no minimum
      payments and a flat licensing fee of $65 per bike.
	 	 

    

    
      
        
          	
                  e.       

                	
                  PSF
      will not issue any press releases on this settlement and shall only issue
      information to the SEC as required by
law.

                

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    2.           Default:  PSF shall be in
default under this Agreement if it fails to comply completely and timely with
obligations set forth in Paragraph 1 (“Default”).  Upon Default, this
Agreement shall, at Andretti IV’s election evidenced by written notice to PSF,
be null and void (except for Andretti IV’s right to file a lawsuit for the entry
of a Consent Judgment) and all sums payable pursuant to the Benelli Agreement
and the Yamati Agreement in their original forms shall be immediately due and
owing..

    

    3.           Release
and Discharge of December 31, 2008/2009 Debt:  In consideration
of PSF’s full compliance and satisfaction of the terms of this Agreement,
Andretti IV shall release and discharge PSF, along with their current and former
shareholders, officers, directors, representatives, attorneys, insurers, agents,
and employees, and together with any and all persons, firms, corporations,
affiliates, and subsidiaries, who are or may be liable therefor, from the
December 31, 2008/2009 Debt.  Except as otherwise provided herein, all
other terms and conditions of the Benelli Agreement and the Yamati Agreement
shall remain in full force and effect.

    

    IN WITNESS WHEREOF, the
Parties have signed this Agreement as of the date set forth below.

    

    

    
      	
              POWER
      SPORTS FACTORY, INC.

               

              /s/
      Shawn
      Landgraf                             
      

              Shawn
      Landgraf

              Chief
      Executive Officer

               

              Date:  October
      23rd, 2009

            	
              ANDRETTI
      IV, LLC

               

              /s/Mario
      Andretti                            
      

              Mario
      Andretti

              Member

               

              Date:
      October 23rd, 2009EXHIBIT
10.1

    

    September
30, 2009

    

    Mr. David
Russell, CEO

    Apollo
Gold Corporation

    Denver
CO

    

    Dear
Dave,

    

    As per
our various conversations and discussions, the following are the basic terms
Elkhorn is proposing to purchase of Apollo Gold’s interest in Montana Tunnels
Mining Inc.  If you are in agreement with these terms, we are prepared
to move forward with the preparation of documents to finalize this
transaction.

     

    Elkhorn
Goldfields LLC will purchase Apollo’s entire interest in Montana Tunnels Mining
Inc. (AKA: MTMI) which includes the Elkhorn Tunnels JV, Montana Tunnels Mine,
Diamond Hill Mine, Diamond Hill Mill and any and all ancillary assets from
Apollo Gold for a purchase price of $9,000,000, as of September 30th, 2009,
to be paid on the following terms with the effective date to be October 19,
2009:

     

    
      	
               
      

            	
              1)

            	
              $5,000,000
      paid in cash on the following
schedule:

            

    

    
      	
               
      

            	
              a.

            	
              $250,000
      non-refundable payment paid no later than October 19,
      2009.  This agreement shall be subject to non-disclosure and
      non-binding on either party should this payment not be
    made.

            

    

    
      	
               
      

            	
              b.

            	
              $250,000
      non-refundable payment paid no later than November 25th,
      2009

            

    

    
      	
               
      

            	
              c.

            	
              $250,000
      non-refundable payment paid no later than December 25th,
      2009

            

    

    
      	
               
      

            	
              d.

            	
              $250,000
      paid on January 25th,
      2009

            

    

    
      	
               
      

            	
              e.

            	
              $250,000
      paid on February 25th,
      2010

            

    

    
      	
               
      

            	
              f.

            	
              $250,000
      paid on March 25th,
      2010

            

    

    
      	
               
      

            	
              g.

            	
              $1,500,000
      paid on April 30th,
      2010

            

    

    
      	
               
      

            	
              h.

            	
              $2,000,000
      paid on May 31st,
      2010

            

    

     

    It is
understood and agreed that any missed scheduled payment will result in the
termination of this agreement unless otherwise negotiated.

     

    
      	
               
      

            	
              2)

            	
              $4,000,000
      paid by a 4% NSR

            

    

    
      	
               
      

            	
              a.

            	
              Payments
      commencing coincident with the start of production on standard NSR
      industry terms and continuing to be paid from production until such time
      as a total of $4,000,000 is paid.

            

    

     

    
      	
               
      

            	
              3)

            	
              Upon
      full payment of cash portion of purchase contract, title of all assets
      subject to this agreement shall be conveyed to Elkhorn, subject to the 4%
      NSR interest due to Apollo.

            

    

     

    
      	
               
      

            	
              4)

            	
              Apollo
      shall have a “claw back” right to earn a 50% interest in a new Joint
      Venture to be formed between Elkhorn and Apollo for the purpose of
      exploring and developing additional potential gold and / or other
      associated metal reserve and resources at Montana
      Tunnels.  (Excluded would be the current M-Pit Reserves and
      Resources.)  This provision shall be enacted by Elkhorn, as the
      operator, utilizing Dick Nana as the managing geologist, based on his
      availability, by submitting a proposed exploration budget and plan to
      Apollo within 18 months of this agreement, and upon Apollo’s agreement to
      fund 50% of the proposed program.  Should minerals of value be
      found warranting further exploration and development, Apollo shall have
      the right to fund 50% of the cost through production and in doing so,
      shall have earned a 50% Joint Venture interest in this future
      development.  It is intended that the Joint Venture agreement
      will be structured utilizing the current Elkhorn Tunnels JV Agreement,
      with Elkhorn the operator, and Apollo, the JV partner in this
      enterprise.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    If you
are in agreement with the basic terms of this agreement, please sign below, and
we will immediately move forward to commence the due diligence process and
arrive at formal agreements documenting this transaction.

     

    
      
        	
                Best
      regards,

              
	 
      
	
                /s/
      Patrick W.M. Imeson

              
	 
      
	
                Patrick
      W.M. Imeson

              
	
                Chairman

              
	 
      
	
                Agreed,

              
	 
      
	
                /s/
      R. David Russell

              
	 
      
	
                R.
      David Russell, CEO

              
	
                Apollo
      Gold Corporation

              

      

    

    

    
      
         

      

      
        2

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