Document:

ex10_12.htm

     

    
 

    Exhibit
10.12

     

    ASSIGNMENT AND ASSUMPTION
AGREEMENT

     

    

    THIS ASSIGNMENT AND ASSUMPTION
AGREEMENT (this “Agreement”) is made
as of the 29th day of
February, 2008, by and among (a) TRACKPOWER, INC., a Wyoming corporation, (the
“Assignor”),
(b) SOUTHERN TIER ACQUISITION II LLC (“Southern”), a New
York limited liability company, and (c) ONEIDA ENTERTAINMENT LLC (“Oneida”), a Delaware
limited liability company (Southern and Oneida collectively referred to herein
as the “Assignee”), pursuant
to an Agreement to Transfer Membership Interest, dated as of February 29, 2008,
by and between the Assignor and the Assignee (the "Contract").

    

    

    WITNESSETH:

    

    

    WHEREAS, as of the date
hereof, Assignor is the owner and holder of 24,532.82 Units, which represents
4.94% of the Membership Interests in the Company; and

    

    WHEREAS, pursuant to the terms
of the Contract, Assignor has agreed to sell and assign to Assignee, and
Assignee has agreed to purchase from Assignor, all of Assignor’s right, title
and interest to all of its Membership Interests in the Company (the “Interest”), all
rights held by Assignor under or in respect of the Operating Agreement that
relate to the Interest (the “Assigned Rights”), and
Assignor’s Consulting Fees (as defined in the Contract), all effective as of the
date hereof (the "Effective Date");

    

    NOW, THEREFORE, for valuable
consideration in hand paid, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

    

    1.           Assignment.   Assignor
hereby assigns, conveys, transfers and sets over unto Assignee all right, title
and interest of Assignor in and to the Interest, Assigned Rights and Consulting
Fees, effective as of the Effective Date.  The Interest (and the
corresponding Assigned Rights and Consulting Fees) shall be assigned to the
Assignee as follows: (a) 50% of the Interest (and the corresponding Assigned
Rights and Consulting Fees) to be assigned to Southern; and (b) 50% of the
Interest (and the corresponding Assigned Rights and Consulting Fees) to be
assigned to Oneida.

    

    2.           Acceptance and
Assumption.  Each of Oneida and Southern, solely on behalf of
itself and not on a joint and several basis, hereby accepts such assignment and
agrees with Assignor that, effective as of the Effective Date, such Assignee
will (x) assume and pay all liabilities and obligations arising from the
ownership of its portion of the Interest that arise on or after the Effective
Date and (y) perform all of the terms, covenants and conditions to be performed
under the Operating Agreement with respect to its portion of the Interest that
arise on or after the Effective Date (collectively, the “Assumed Obligations”).  Notwithstanding
the preceding sentence, except for the Assumed Obligations, Assignee is not,
directly or indirectly, assuming, and shall not in any way be

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    or become
responsible for, any liabilities of Assignor arising under or relating to the
Operating Agreement which arise, directly or indirectly, out of (i) events
occurring prior to the Effective Date, whether or not such liabilities are known
or unknown as of the

    Effective Date,
(ii) Assignor's transfer of the Interest, the Assigned Rights and the Consulting
Fees to Assignee, (iii) the inaccuracy of any representation or the breach of
any covenant or agreement made by Assignor in the Contract or in the Operating
Agreement, or (iv) any tax liabilities of Assignor, including liability for
taxes attributable to income or losses allocated to Assignor on or in respect of
any of the Interest.

    

    3.           Adjustments to Units and
Percentages.  Upon the execution of this Agreement and after
giving effect to the application of the purchase price for the Transferred
Property as contemplated by Section 3 of the Contract, the Units and Percentages
set forth in Exhibit 3.1 of the Operating Agreement shall be as
follows:

    

    
      	
              (i)

            	
              Southern –
      Units 217,544.91 – Adjusted Percentage 43.80%

            
	
              (ii)

            	
              Oneida –
      Units 279,162.30 – Adjusted Percentage
56.20%

            

    

    

    4.           Acknowledgments.  Assignor
hereby agrees and acknowledges that as of the date hereof, Assignor retains no
interest in or entitlement to any rights under the Operating Agreement,
including but not limited to any rights in or entitlements to (i) allocations of
profits and losses under Article 8, and (ii) distributions under Article
9.

    

    5.           Further
Assurances.   The parties hereto covenant and agree that
they will execute, deliver and acknowledge from time to time at the reasonable
request of the other, and without further consideration, all such further
instruments of assignment or assumption of rights and/or obligations as may be
required in order to give effect to the transactions described
herein.

    

    6.           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and each of their respective successors and
permitted assigns; provided, that
neither this Agreement nor any of the rights, interests or obligations under
this Agreement shall be assigned by any party hereto without the prior written
consent of the other parties hereto.  None of the provisions of this
Agreement shall be for the benefit of or enforceable by any other
person.

    

    7.           Counterparts. 
This Agreement may be executed in any number of counterparts (including by
facsimile), and each such counterpart will for all purposes be deemed an
original, and all such counterparts shall constitute one and the same
instrument.  The individuals signing this Agreement on behalf of the
parties hereto represent and warrant that they are duly authorized to do
so.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    8.           Governing
Law.   This Agreement shall be construed in accordance
with and governed by the internal laws of the State of New York (including for
such purpose Sections 5-1401 and 5-1402 of the General Obligations Law of the
State of New York).

    

    9.           Contract Controlling.
This Agreement is made, executed and delivered pursuant to the Contract, and is
subject to all of the terms, provisions and conditions thereof.  To
the extent of any conflict between the terms of the Contract and this Agreement,
the Contract shall be controlling.  The Assignor and the Assignee
expressly acknowledge and agree that the rights and remedies of either party
under the Contract shall not be deemed to be enlarged, modified or altered in
any way by such execution and acceptance of this Agreement.

    

    [signatures on
following page]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed by duly authorized
officers or other persons, as of the date first above written.

    

    

    ASSIGNOR:

    

    TRACKPOWER,
INC.

    

    

    By:            ___________________________________

    Name:John G.
Simmonds

    Title:Chairman

    

    ASSIGNEE:

    

    SOUTHERN TIER
ACQUISITION II LLC

    

    

    By:            __________________________________

    Name:Jeffrey
Gural

    Title: Manager

    

    ONEIDA
ENTERTAINMENT LLC

    

    

    By:            __________________________________

    Name:ex10_13.htm

     

    
 

    Exhibit
10.13

    

    SETTLEMENT
AGREEMENT

    

    B
E T W E E N

    

    Brian
Usher-Jones

    (“Usher-Jones”)

    

    - and
-

    

    Trackpower
Inc.

    

    (“Trackpower”)

    

    WHEREAS Usher-Jones held a
thirty seven percent (37%) member interest in Asolare II, LLC
(“Asolare”);

    

    AND WHEREAS Asolare
transferred its membership interest in Tioga Downs Racetrack, LLC to Trackpower
in exchange for 1,000 Series A 8% convertible preferred shares, $3,000 initial
value (the “Preferred Shares”);

    

    AND WHEREAS Asolare is owed
$3,000,000 principal of the Preferred Shares and $440,000 in accrued unpaid
dividends from Trackpower (collectively the “Obligations”);

    

    AND WHEREAS Asolare and
Trackpower have agreed to settle the Obligations owed by Trackpower to Asolare
by Trackpower issuing one billion two hundred twenty million (1,220,000,000)
restricted shares of its common stock collectively to Asolare’s members and
affiliates;

    

    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 Usher-Jones two hundred twenty-nine million four hundred
thousand (229,400,000) restricted shares of its common stock as full and
complete settlement of Usher-Jones’ interest in Preferred Share obligations of
Trackpower to Asolare.

    

    2.                      Trackpower
agrees to pay Usher-Jones thirty seven percent (37%) of ten percent (10%) of
cumulative EBITDA in cash, quarterly, 45 days following fiscal quarter end, to a
maximum of $370,000.

    

    3.                      The
parties hereto agree to execute the Mutual Release which is
attached hereto as Schedule “A”.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.                      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.

    

    5.                      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.

    

    
      	 
    	
              TRACKPOWER,
      INC.

            
	 
    	 
    
	 
    	 
    
	 
    	 
    
	 
    	
              Per:________________________

            
	 
    	
                    Name:

            
	 
    	
                    Title:

            

    

    

    
      	 
    	
              ASOLARE
      II, LLC

            
	 
    	 
    
	 
    	 
    
	 
    	
              Per:________________________

            
	 
    	
                    Manager

            

    

    

    

    

    

    

    
      	 
    	
              _________________________

            	 
    	
              ______________________________

            
	 
    	
              Witness as to
      signature of

            	 
    	
              Brian
      Usher-Jones

            
	 
    	
              Brian
      Usher-Jones

            	 
    	 
    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    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, the receipt and sufficiency whereof are acknowledged, the
undersigned, Usher-Jones and Asolare 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 Asolare and Trackpower.

    

    AND IN FURTHER
CONSIDERATION of the Agreement and other good and valuable consideration
Trackpower hereby releases Usher-Jones and Asolare, 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 Asolare.

    

    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.

    

    

    
      	 
    	
              TRACKPOWER,
      INC.

            
	 
    	 
    
	 
    	 
    
	 
    	 
    
	 
    	
              Per:________________________

            
	 
    	
                    Name:

            
	 
    	
                    Title:

            

    

    

    
      	 
    	
              ASOLARE
      II, LLC

            
	 
    	 
    
	 
    	 
    
	 
    	
              Per:________________________

            
	 
    	
                    Manager

            

    

    

    

    

    

    

    
      	 
    	
              _________________________

            	 
    	
              ______________________________

            
	 
    	
              Witness as to
      signature of

            	 
    	
              Brian
      Usher-Jones

            
	 
    	
              Brian
      Usher-Jones

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