Document:

TEAMING
      AGREEMENT

     

    This
      Teaming Agreement (this “Agreement”),
      effective as of February 22, 2006, made by and
      among
      The University of Texas System (“UTS”),
      The
      University of Texas of the Permian Basin (“UTPB”),
      The
      University of Texas at Austin (“UTAUS”),
      The
      University of Texas at Arlington (“UTA”),
      The
      University of Texas at Dallas (“UTD”),
      The
      University of Texas at El Paso (“UTEP,”
      collectively with UTS, UTPB, UTAUS, UTA and UTD, the “UT
      Institutions”),
      the
      City of Andrews, Texas and Andrews County, Texas (collectively, “Andrews”),
      the
      Midland Development Corporation (“Midland”),
      the
      Odessa Development Corporation (“Odessa,”
      collectively with Andrews and Midland, the “Permian
      Basin Entities”),
      Thorium Power, Inc., a Delaware corporation, headquartered in McLean, Virginia
      (“Thorium
      Power”)
      and
      General Atomics, a California corporation, headquartered in San Diego,
      California (“GA”)
      sets
      forth the duties and obligations regarding the cooperation of the parties to
      this Agreement with regard to the preparation and finalization of the
      Pre-Conceptual Design (the “PCD”)
      of a
      proposed state-of-the-art nuclear reactor research facility to be known as
      the
      High- Temperature Teaching and Test Reactor (“HT3R”).

     

    Recitals

     

    A.     The
      proposed mission of HT3R
      will be
      to operate as a “national user facility” to: (1) educate and train the next
      generation of high-temperature and nuclear scientists and engineers, (2) perform
      basic and applied nuclear research, (3) support the engineering, design,
      licensing, construction and operation of the Department of Energy’s Next
      Generation Nuclear Plant, (4) optimize the economic high-temperature production
      of hydrogen, synthetic fuels and other materials, (5) significantly increase
      the
      efficiency of electricity production in power plants, and (6) to the extent
      shown technically feasible and economically effective by the PCD, explore the
      use of proliferation resistant fuels, including thorium-based
      fuels.

     

    B.     Each
      of
      the UT Institutions is an institution of higher education located within the
      State of Texas with a goal of advancing scientific education and research in
      the
      State of Texas.

     

    C.     The
      Permian Basin Entities located in close proximity to each other desire to
      provide the opportunity for economic development, particularly as it relates
      to
      the future of the energy industry in the Permian Basin thereby adding economic
      opportunities for their citizens and businesses in the region.

     

    D.     Thorium
      Power is a corporation that is involved in the design of proliferation
      resistant, thorium-based nuclear fuels and is interested in being involved
      in
      the design of thorium-based nuclear fuels for use in the HT3R.

     

    E.     GA
      is a
      corporation with significant experience in the design and operation of
      state-of-the-art nuclear reactor facilities worldwide.

     

    F.     Each
      party to this Agreement believes that completion of the PCD is a necessary
      prerequisite to a fully informed decision to pursue engineering, licensing
      and
      construction of the HT3R.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    G.     All
      parties to this Agreement recognize that a teaming agreement will provide a
      strong structure for the successful completion of the PCD by allowing each
      party
      to complement the unique capabilities of the other, and set forth clear
      value-added roles for each party participating in the process.

     

    Agreement

     

    1.     PCD
      Activities. This
      Agreement relates solely to the parties desire to work collaboratively together
      to complete the PCD. In the event some or all of the parties elect to pursue
      further work on the HT3R
      beyond
      completion of the PCD, a new teaming agreement will be executed.

     

    1.1.     Fundraising/Payment
      of PCD Costs.
      The
      parties estimate that completion of the PCD will cost approximately $3 million.
      UTPB will be primarily responsible for raising the funds necessary to complete
      work on the PCD. All money raised in support of PCD activities will be donations
      to UTPB (the “PCD
      Donations”).
      All
      parties making a PCD Donation under this Agreement acknowledge and agree
      that:

     

        1.1.1.     UTPB
      will
      treat the PCD Donations as donations to UTPB, but each party making a PCD
      Donation is solely responsible for their own classification of the expense
      or
      accounting and tax treatment of the PCD Donation made by them;

     

    1.1.2.     so
      long
      as the PCD Donations are expended for the PCD, all PCD Donations are
      non-refundable;

     

    1.1.3.     subject
      to the terms and conditions of this Agreement, UTPB will have sole discretion
      to
      expend the PCD Donations in support of the PCD; and 

     

    1.1.4.     other
      parties to this Agreement will receive funds from the PCD Donations for work
      completed on the PCD.

     

    As
      recipient and administrator of the PCD Donations, UTPB will be solely
      responsible for and have sole discretion over expenditure of the PCD Donations
      for services rendered with respect to the PCD. Any party to this Agreement
      wishing to claim expense reimbursement for work on the PCD will submit such
      request for reimbursement to UTPB. Each party to this Agreement acknowledges
      and
      agrees that under a cost-basis contract it will not be entitled to claim
      reimbursement for any overhead or similar charges related to their participation
      in the PCD. Each party seeking reimbursement will submit to UTPB a detailed,
      line item invoice. No party may seek payments under this Agreement exceeding
      an
      aggregate amount of $1.5 million. In no event will UTPB be responsible to pay
      any party for any expenses incurred in excess of the amount of PCD
      Donations.

     

    1.2.     PCD
      Content.
      The PCD
      will be composed of three distinct sections: (a) a technical and design plan
      for
      the HT3R;
      (b) a
      business plan for management and operation of the HT3R;
      and
      (c) an academic plan for UTPB’s role as host institution of the HT3R
      as
      detailed in Section
      1.4
      below.
      Each of the parties to this Agreement agree to work cooperatively together
      to
      promptly complete the PCD with individual parties being primarily or exclusively
      responsible for certain elements of the PCD as specified in Sections 1.3 and
      1.4
      below.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    1.3.     GA
      -
      PCD Manager.
      GA will
      serve as the manager of work on the PCD. As the manager of the PCD, GA will
      be
      responsible for production of the final PCD documentation and will ensure the
      completion of the technical and design plan and the business plan. In preparing
      the PCD documentation, GA will actively consult with the other parties hereto
      and seek to incorporate the input of the other parties into the final PCD
      documentation. Each of the other parties to this Agreement agrees to reasonably
      assist and provide input to GA as reasonably requested to complete the PCD.
      GA
      agrees to provide timely reports to the single point of contact for the Permian
      Basin Entities designated in Section
      10
      of this
      Agreement on the status of the PCD. 

     

    1.4.     UTPB
      -
      Host Institution.
      The PCD
      will specify UTPB as the host institution for the HT3R.
      The
      PCD will be constructed such that UTPB is proposed to be the owner and operator
      of the HT3R.
      As
      owner and operator of the HT3R
      and
      host institution of the HT3R
      project, UTPB will be primarily responsible for the academic plan contained
      in
      the PCD. In the PCD, UTPB will specify the faculty, educational administrators,
      programs, institutes, degrees, colleges, schools and collaborations necessary
      to
      academically support the HT3R.

     

    1.5.     Role
      of UTS Institutions.
      The UT
      Institutions, other than UTPB, will support UTPB in designing and specifying
      the
      role of UTPB as host institution and support UTPB efforts to construct an
      academic plan in support of that role. Each UT Institution will designate a
      single point of contact as specified in Section
      10
      of this
      Agreement to work with UTPB towards this goal. As requested, UTS will use its
      existing relationship with Sandia National Laboratories (“Sandia”)
      to
      access consulting services from Sandia to support PCD activities.

     

    1.6.     Role
      of Permian Basin Entities.
      In
      conjunction with the execution of this Agreement, the Permian Basin Entities
      have agreed to make a PCD Donation as follows: 

     

    
      	
              Andrews

            	 	
              $500,000

            
	
              Midland

            	 	
              $500,000

            
	
              Odessa

            	 	
              $500,000

            

    

     

    The
      PCD
      Donations by the Permian Basin Entities are made with the following conditions:
      

     

    1.6.1.     The
      Permian Basin Entities will assist GA and UTPB to the extent reasonably
      requested by GA and UTPB in connection with the completion of the business
      plan
      contained in the PCD, except that the financial obligation of the Permian Basin
      Entities is limited to $500,000 each as shown in Section
      1.6
      above.

     

    1.6.2.     Each
      of
      the Permian Basin Entities will designate a single point of contact as set
      forth
      in Section
      10
      of this
      Agreement for providing reasonably requested assistance in preparing the
      business plan in the PCD.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    1.6.3.     The
      Permian Basin Entities will provide advice on location of the HT3R,
      local
      business involvement in construction and operation of the HT3R
      and
      general economic advice concerning the PCD. Andrews, in consultation with UTPB
      and GA, will advise and consent to the proposed location of the HT3R,
      consistent with the site criteria set forth in the PCD and subject to the
      design, licensing and final engineering plans. 

     

    1.6.4.     Within
      16
      calendar days of the execution of this Agreement by all parties, Andrews,
      Midland and Odessa will each provide to UTPB the PCD Donation committed under
      Section
      1.6
      above,
      except that no funds shall be provided until UTPB has notified Andrews, Midland
      and Odessa, in writing, that commitments for the $3 million needed for the
      PCD
      as detailed in Section
      1.1
      above
      have been secured from all sources on or before April 30, 2006.

     

    1.6.5.     The
      parties to this Agreement intend for the HT3R,
      if
      constructed, (a) to result in significant research activities related to the
      HT3R
      being
      located at the UTPB Center for Energy and Economic Diversification (CEED) in
      Midland County along with research, academic and other activities in Andrews
      County and on UTPB campus in Odessa and, (b) subject to appropriate approvals
      and to the extent practical, and within requisite capabilities, involve the
      community colleges in Midland, Odessa and Andrews for technical workforce
      training and educational programs. 

     

    1.6.6.     Each
      of
      the Permian Basin Entities also agrees to work with the other parties to this
      Agreement to ensure an active and continuing public discourse regarding the
      PCD
      and the HT3R
      among
      the citizenry and businesses of the Permian Basin.

     

    1.7.     Role
      of Thorium Power.
      In
      conjunction with the execution of this Agreement, Thorium Power agrees to make
      a
      PCD Donation of $1.25 million dollars. In addition, upon request Thorium Power
      agrees to make its expertise in thorium fuel and thorium fuel designs available
      to GA and UTPB on those elements of the PCD that will address the testing of
      new
      fuel and fuel cycles in the HT3R.
      To the
      extent that the PCD will address specific thorium fuel designs, Thorium Power
      will, through consultation with GA, be responsible for contributing to those
      designs. In addition, to the extent that the PCD may address issues particular
      to the use of thorium fuel experiments in conjunction with hydrogen generation
      experiments, Thorium Power will provide its expertise to GA. Any services
      provided by Thorium Power as a result of its obligations under this Section
      1.7
      will be
      provided by Thorium Power on terms to be mutually agreed upon with UTPB and
      GA
      prior to the provision of such services. Thorium Power will designate a single
      point of contact for the delivery of such consulting services as set forth
      in
Section
      10
      of this
      Agreement.

     

    1.8.     Where
      possible, practicable and relevant, each party to this Agreement will give
      reasonable advance notice to the other parties to this Agreement of, and permit
      participation of such parties in, significant meetings, communications and
      discussions about the HT3R
      with
      third parties or with other parties to this Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    1.9.     Subject
      to applicable law, including but not limited to Texas state laws on procurement
      and contracting, and as is economically feasible and technically prudent, (a)
      the Major Parties shall use commercially reasonable efforts to afford the other
      parties to this Agreement the opportunity to participate in hydrogen
      generation-related reactor projects the Major Parties may become involved in
      together in the next five years, and (b) if the HT3R
      is
      ultimately constructed and operated to use thorium as one fuel source, UTPB
      will
      seek to use Thorium Power as a supplier of “first resort” of thorium for the
      HT3R.

     

    2.     Term
      and Termination. Except
      for the rights and obligations of the parties to this Agreement set forth in
      Sections
      1.9, 1.10, and 3
      through
7
      of this
      Agreement, all rights and obligations of the parties under this Agreement will
      terminate upon the following:

     

    2.1.     Notice
      from UTPB that it has been unsuccessful in securing funding for the PCD as
      set
      forth in Section
      1.1
      of this
      Agreement;

     

    2.2.     Refusal
      by the UTS Board of Regents to approve the participation of the UT Institutions
      in this Agreement;

     

    2.3.     Upon
      written notice by any party to this Agreement that it elects not to pursue
      its
      role in the PCD. However, only the termination of UTS, UTPB or GA (a
“Major
      Party”)
      as a
      party to this Agreement will terminate the entire Agreement. Termination by
      any
      other party under this Section
      2.3
      will
      only terminate this Agreement as to such party giving written notice of
      termination.

     

    2.4.     A
      material breach of this Agreement by a Major Party, which remains uncured for
      10
      business days after written notice of such material breach by another Major
      Party. If a party other than a Major Party materially breaches this Agreement,
      and such material breach remains uncured 10 business days after notice of such
      material breach by a Major Party, this Agreement will terminate as to such
      materially breaching party and at the option of UTS may terminate in its
      entirety.

     

    2.5.     The
      expiration of 18 months from the effective date hereof.

     

    3. 
        Proprietary
      Information. The
      parties anticipate that performance of this Agreement may require the parties
      to
      disclose to each other information of a proprietary nature. Therefore, as an
      integral part of this Agreement, the parties agree to abide by the following
      terms of nondisclosure:

     

    3.1.     For
      purposes of this Agreement, “Proprietary
      Information”
will
      mean technical or financial information (a) originated by or otherwise
      peculiarly within the knowledge of the party, (b) currently protected against
      unrestricted disclosure to others (subject to applicable state and federal
      laws,
      including the Texas Public Information Act), and (c) pertaining to the PCD.
      Nothing herein will restrict the obligation of the UT Institutions, Andrews,
      Midland or Odessa to comply with or exercise their discretion to determine
      their
      obligations under the Texas Public Information Act. 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

        3.2.     In
      consideration for the disclosure of Proprietary Information, the receiving
      party
      agrees (a) to hold Proprietary Information in trust and confidence and not
      disclose the same to any person or persons outside its organization and to
      use
      commercially reasonable efforts ensure that persons within its organization
      who
      receive such Proprietary Information agree to comply with the restricted use
      and
      nondisclosure provisions of this Agreement, and (b) to refrain from using the
      same except for the purposes of the PCD without prior approval of the disclosing
      party. The parties may disclose Proprietary Information to their contractors,
      agents, affiliates, consultants, attorneys and employees thereof who need to
      know the Proprietary Information for the purpose set out herein, and who, prior
      to such disclosure, indicate their agreement to comply with the restricted
      use
      and nondisclosure provisions of this Agreement.

     

    3.3.     Recipients
      of Proprietary Information hereunder will have no obligation or restriction
      with
      respect to any Proprietary Information if the same is:

     

    3.3.1.     in
      the
      public domain at the time of disclosure, or is subsequently made available
      to
      the general public without restriction by the disclosing party;

     

    3.3.2.    
known
      to the
      receiving party at the time of disclosure without restrictions on its use or
      independently developed by the receiving party, and there is adequate
      documentation to demonstrate either condition;

     

    3.3.3.     used
      or
      disclosed inadvertently or accidentally despite the exercise of the same degree
      of care that each party takes to preserve or safeguard its own Proprietary
      Information;

     

    3.3.4.     used
      or
      disclosed with the prior written approval of the disclosing party;

     

    3.3.5.     furnished
      by the disclosing party to the U.S. Government with “unlimited
      rights;”

     

    3.3.6.     disclosed
      without restriction to the receiving party from a source other than the
      disclosing party, which source has not breached any duty or other obligation
      to
      maintain such information confidential; or 

     

    3.3.7.     required
      to be disclosed under state or federal law.

     

    If
      any
      portion of a party’s Proprietary Information falls within any one of the above
      exceptions, the remainder will continue to be subject to the foregoing
      prohibitions and restrictions.

     

        3.4.    All
      financial information provided by either party to the other is hereby considered
      as Proprietary Information and will need no legend to be protected. All other
      Proprietary Information made available in written form by one party to the
      other
      will be marked with the legend “PROPRIETARY INFORMATION” or an equivalent
      conspicuous legend. No sheet or page of any written material will be so labeled
      which is not, in good faith, believed to contain Proprietary Information. A
      recipient of information hereunder will have no obligation with respect to
      any
      portion of any written material that is not so labeled, or any information
      received visually or orally unless a written summary of such visual or oral
      communication, specifically identifying the items of Proprietary Information,
      is
      furnished to the recipient within 10 business days of
      disclosure.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.5.
         The
      receiving party will only make such copies of the disclosing party’s Proprietary
      Information as are reasonable and necessary in carrying out its activities
      under
      this Agreement. Upon termination of this Agreement or the disclosing party’s
      request, each receiving party will promptly return to the appropriate disclosing
      party all copies of Proprietary Information subject to any and all public
      entities’ record retention and open records obligations.

     

    3.6.
          No
      rights
      or obligations other than those expressly recited in this Agreement are to
      be
      implied from this Agreement. Except as set forth in Section
      3.7
      below,
      no license, express or implied, will inure to the benefit of the other
      participating parties as a result of a patent being granted to one of the
      parties for inventions made exclusively be its employees. No license to the
      other party, under any patents, is granted or implied by conveying Proprietary
      Information or other information to that party and none of such information
      that
      may be transmitted or exchanged by the respective parties will constitute any
      representation, warranty, assurance, guaranty or inducement by any party to
      the
      other with respect to the infringement of patents or other rights of
      others.

     

    3.7.    The
      PCD
      will be owned by UTS. Any intellectual property of a party contained or embedded
      in the final draft of the PCD will be irrevocably licensed to UTS on a
      non-exclusive royalty-free, fully paid-up basis for the exclusive purpose of
      constructing, operating and securing funding for or otherwise relating to UTPB’s
      role as host institution of the HT3R.
      Nothing herein or in the PCD will grant any party any patent rights in patents
      owned by UTS, the UT Institutions, Thorium Power or GA nor any other rights
      to
      intellectual property owned or developed by a party hereto except to the extent
      expressly specified in this Section
      3.7.
      UTS and
      GA agree to work together to cooperatively develop any commercial uses of the
      PCD beyond construction of the HT3R;
      provided,
      however, nothing
      herein shall require any party to spend money or designate material resources
      to
      such efforts.

     

    4.     Relationship.
      Nothing
      in this Agreement will be deemed to constitute, create, give effect to, or
      otherwise recognize a joint venture, partnership or fiduciary formal business
      relationship of any kind, and the rights, obligations and remedies of the
      parties will be limited to those expressly set forth herein. Nothing herein
      will
      be construed as providing for the sharing of profits or losses arising out
      of
      the efforts of either or both of the parties.

     

    5.     News
      Releases. No
      written news release will be made to the news media or the general public
      relating to the PCD or the HT3R
      in
      general without the prior written approval of UTS and GA, which approval will
      not be unreasonably withheld, conditioned or delayed. The parties agree that
      any
      breach of this provision regarding news releases will be a material breach
      of
      this Agreement and any Major Party may seek relief for such breach, including:
      (a) immediate termination of this Agreement as to the breaching party, (b)
      injunctive relief, and/or (c) monetary damages.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              UTS
                contact for press release approval:

            	 	
              Michael
                Warden

              mwarden@utsystem.edu

              (512)
                499-4363

              (512)
                499-4358 - fax

            
	 	 	 
	
              GA
                contact for press release approval:

            	 	
              Doug
                Fouquet

              Doug.fouquet@gat.com

              (858)
                858-2173

              (858)
                455-3213 - fax

            

    

     

    The
      parties further agree that news releases made by any of them will, to the extent
      practical, recognize the participation and contributions of each party to this
      Agreement.

     

        6.     Indemnity.
      Each
      party and its respective employees, agents, subcontractors and consultants
      will
      obey all applicable laws, rules and regulations. To the extent authorized by
      the
      laws and Constitution of the State of Texas, each party agrees to indemnify
      and
      hold harmless each other party from and against all claims by third parties
      for:

     

    6.1.     damages,
      losses, injury or fines that result from that party’s violation of any law, rule
      or regulation; and

     

    6.2.     property
      damage or personal injury (including death) of any of the other parties’
employees or agents, which is caused by any act or omission to act, including
      negligence, of the indemnifying party’s employees or agents in connection with
      performance under this Agreement.

     

    7.     Disputes.

     

    7.1.    All
      disputes arising under this Agreement, which are not disposed of by the
      agreement of the parties, may be decided by recourse to an action at law or
      equity in court of competent jurisdiction in the State of Texas. Until final
      resolution of any dispute hereunder, the parties will diligently proceed with
      the performance of this Agreement.

     

      
       7.2.      The
      validity, construction, scope and performance of this Agreement will be governed
      by the laws of the State of Texas.

     

      
       7.3.      No
      party
      will be liable to any other party for any indirect, incidental, exemplary,
      punitive, special or consequential damages, however caused, whether as a
      consequence of the negligence of another party or otherwise.

     

         8.    Assignment.
      Except
      as
      provided below, neither this Agreement nor any interest herein may be assigned,
      in whole or in part, by any party without the prior written consent of UTS
      and
      GA, except that, without securing such prior consent, either party will have
      the
      right to assign this Agreement to any successor of such party by way of merger
      or consolidation or the acquisition of substantially all of the entire assets
      of
      such party relating to the subject matter of this Agreement; provided,
      however,
      that
      such successor will expressly assume all of the obligations of such party under
      this Agreement.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    9.    Entire
      Agreement. This
      Agreement and any exhibit(s) hereof constitute the entire understanding and
      agreement of and between the parties with respect to the subject matter hereof,
      and supersede all prior representations and agreements, verbal or written.
      It
      will not be varied, except by an instrument in writing of subsequent date,
      duly
      executed by an authorized representative of each party. Paragraph headings
      herein are for convenience only and will not limit in any way the scope of
      interpretation of any provision of this Agreement.

     

    10.   Notice.
      Any
      notice, consent, demand or request required or permitted by this Agreement
      will
      be in writing and will be deemed to have been sufficiently given when personally
      delivered or deposited in the United States mail, postage prepaid, addressed
      as
      follows:

    

    
      	
              If
                to UTS:

            	 	
              The
                University of Texas System

            
	 	 	
              Attn:
                Barry D. Burgdorf

            
	 	 	
              Vice
                Chancellor and General Counsel

            
	 	 	
              201
                West 7th
                Street, Mail Code P1500

            
	 	 	
              Austin,
                TX 78701

            
	 	 	 
	 	 	
              and
                to:

            
	 	 	 
	 	 	
              The
                University of Texas System

            
	 	 	
              Attn:
                Charles Sorber, PhD

            
	 	 	
              Special
                Engineering Advisor

            
	 	 	
              Office
                of Research and Technology Transfer

            
	 	 	
              601
                Colorado Street, Mail Code P4110

            
	 	 	
              Austin,
                TX 78701

            
	 	 	 
	
              If
                to UTPB:

            	 	
              The
                University of Texas of the Permian Basin

            
	 	 	
              Attn:
                President W. David Watts

            
	 	 	
              4901
                E. University, MB 4218B

            
	 	 	
              Odessa,
                TX 79762

            
	 	 	 
	 	 	
              and
                to:

            
	 	 	 
	 	 	
              The
                University of Texas of the Permian Basin

            
	 	 	
              Attn:
                James F. Wright, PhD

            
	 	 	
              HT3R
                Project Manager

            
	 	 	
              4901
                E. University

            
	 	 	
              Odessa,
                TX 79762

            

    

    

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    
      	
              If
                to UTAUS:

            	 	
              The
                University of Texas at Austin

            
	 	 	
              Attn:
                Juan M Sanchez, PhD

            
	 	 	
              Vice-President
                for Research

            
	 	 	
              1
                University Station, Mail Code G1400

            
	 	 	
              Austin
                TX 78712

            
	 	 	 
	
              If
                to UTA:

            	 	
              The
                University of Texas at Arlington

            
	 	 	
              Attn:
                Ronald L. Elsenbaumer, Vice President

            
	 	 	
              Office
                of Research

            
	 	 	
              346
                Davis Hall

            
	 	 	
              Box
                19162

            
	 	 	
              Arlington,
                TX 76019

            
	 	 	 
	
              If
                to UTD:

            	 	
              The
                University of Texas at Dallas

            
	 	 	
              Attn:
                John P. Ferraris, PhD

            
	 	 	
              School
                of Natural Science and Mathematics

            
	 	 	
              P.O.
                Box 830688, FN 32

            
	 	 	
              Richardson,
                TX 75083

            
	 	 	 
	
              If
                to UTEP:

            	 	
              The
                University of Texas at El Paso

            
	 	 	
              Attn:
                Eric MacDonald, PhD

            
	 	 	
              500
                West University Avenue

            
	 	 	
              Engineering
                Building Room E-301

            
	 	 	
              El
                Paso, TX 79968

            
	 	 	 
	
              If
                to Andrews:

            	 	
              City
                of Andrews

            
	 	 	
              Attn:
                Glen E. Hackler, City Manager

            
	 	 	
              111
                Logsdon

            
	 	 	
              Andrews,
                TX 79714

            
	 	 	 
	
              If
                to Midland:

            	 	
              City
                of Midland

            
	 	 	
              Attn:
                Rick Menchaca, City Manager

            
	 	 	
              P.O.
                Box 1152

            
	 	 	
              Midland,
                TX 79702

            
	 	 	 
	
              If
                to Odessa:

            	 	
              City
                of Odessa

            
	 	 	
              Attn:
                Richard Morton, City Manager

            
	 	 	
              411
                W 8th Street

            
	 	 	
              Odessa,
                TX 79761

            
	 	 	 
	
              If
                to Thorium Power:

            	 	
              Thorium
                Power, Inc.

            
	 	 	
              Attn:
                Seth Grae

            
	 	 	
              8300
                Greensboro Drive, Suite 800

            
	 	 	
              McLean,
                VA 22102

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      	
              If
                to GA:

            	 	
              General
                Atomics

            
	 	 	
              Attn:
                Malcolm Labar

            
	 	 	
              3550
                General Atomics Court, MS 13/269

            
	 	 	
              San
                Diego, CA 92186-9784

            

    

     

    11.   
       Conditions
      on Obligations. The
      obligations of the parties hereunder, including without limitation the
      obligations to prepare the PCD, are subject to the following condition. There
      will be no litigation or proceeding pending or threatened against either party
      or any of the parties’ officers or employees (a) which is for the purpose of
      enjoining or otherwise restricting the activities contemplated by this
      Agreement, or otherwise claiming that any such activity is improper, (b) which
      would mutually adversely affect the rights and/or capabilities of a party in
      respect of such activities or (c) which, in the reasonable judgment of either
      GA
      or UTS, would make the continuation of such activities inadvisable.

     

    12.    
       Scope
      of Agreement. This
      Agreement will relate only to the PCD specified herein, and nothing herein
      will
      be deemed to:

     

    12.1.     confer
      any right or impose any obligation or restriction on either party with respect
      to any other effort or activity at any time undertaken by any party hereto,
      jointly or separately;

     

    12.2.     preclude
      any party hereto from soliciting or accepting any contract or subcontract for
      any third party under any other program or preclude any party from pursuing
      similar PCDs or projects independently or in combination with other parties
      (subject to the requirements set forth herein);

     

    12.3.     limit
      the
      rights of either party to promote, market, sell, lease, license or otherwise
      dispose of its standard products or services, except where such would conflict
      with the obligations of the parties under this Agreement; or

     

    12.4.     obligate
      any party to participate in or proceed with further work related to the
      HT3R.

     

         13.     Non-Solicitation
      of Employees. During
      the performance of this Agreement or the resultant PCD, neither party will,
      directly or indirectly, hire an employee of any other party without the prior
      written approval of the other. Such written approval will not be unreasonably
      withheld. This prohibition will extend for a period of 90 days after the
      employee’s termination of employment with the other party. The foregoing will
      not apply to: (a) employees of any party who have not been substantially
      involved in the performance of this Agreement or the resultant PCD; (b) clerical
      or administrative employees who are not “exempt” employees within the meaning of
      the United States Fair Labor Standards Act; (c) individuals hired as a result
      of
      the use of an independent employment agency; or (d) individuals hired as a
      result of the use of a general solicitation (such as an advertisement, in
      newspapers or on radio or television) not specifically directed to the employees
      of any party.

     

    [Signature
      Pages Follows]

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the
      parties hereto have signed this Agreement, or have caused
      this Agreement to be signed in their respective names by an officer, hereunto
      duly authorized, as of the date first written above.

     

    
      
        	UTS:	 	 	UTPB:
	 	 	 	 
	The
                University of Texas System	 	 	The
                University of Texas of the Permian Basin
	 	 	 	 
	
                By:
                  

              	 	 	
                By:
                  

              
	
              	
                
                  

                

                Mark
                  G. Yudof

                Chancellor

              	 	 	
              	
                
                  

                

                W.
                  David Watts

                President

              
	
              	
              	 	 	 	
              

      

    

     

    
      	UTAUS:	 	 	UTA:
	 	 	 	 
	The
              University of Texas at Austin	 	 	The
              University of Texas at
              Arlington
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              William
                C. Powers, Jr.

              President

            	 	 	
            	
              
                

              

              James
                Spaniolo

              President

            
	
            	
            	 	 	 	
            

    

     

    
      	
              UTD:

            	 	 	
              UTEP:

            
	 	 	 	 
	
              The
                University of Texas at Dallas

            	 	 	
              The
                University of Texas at E1 Paso

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              David
                E. Daniel

              President

            	 	 	
            	
              
                

              

              Diana
                S. Natalicio

              President

            
	
            	
            	 	 	 	
            

    

     

      	
              Andrews

            	 	 	
              Midland

            
	 	 	 	 
	
              
                City
                  of Andrews

              

            	 	 	
              
                Midland
                  Development Corporation

              

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              Robert
                Zap

              Mayor

            	 	 	
            	
              
                

              

              John
                James

              President

            
	
            	
            	 	 	 	
            

    

     

    Signature
      Page to Teaming Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the
      parties hereto have signed this Agreement, or have caused
      this Agreement to be signed in their respective names by an officer, hereunto
      duly authorized, as of the date first written above.

     

    
      	
              
                UTS:

              

            	 	 	
              
                UTPB:

              

            
	 	 	 	 
	
              
                
                  The
                    University of Texas System

                

              

            	 	 	
              
                
                  The
                    University of Texas of the Permian
                    Basin

                

              

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              Mark
                G. Yoduf

              Chancellor

            	 	 	
            	
              
                
W.
                David Watts

              President

            
	
            	
            	 	 	 	
            

    

     

      	
              
                
                  UTAUS:

                

              

            	 	 	
              
                
                  UTA:

                

              

            
	 	 	 	 
	
              
                
                  
                    The
                      University of Texas at Austin

                  

                

              

            	 	 	
              
                
                  
                    The
                      University of Texas at
                      Arlington

                  

                

              

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              William
                C. Powers, Jr.

              President

            	 	 	
            	
              
                
James
                Spaniolo

              President

            
	
            	
            	 	 	 	
            

    

     

    
      	
              
                
                  
                    UTD:

                  

                

              

            	 	 	
              
                
                  
                    UTEP:

                  

                

              

            
	 	 	 	 
	
              
                
                  
                    
                      The
                        University of Texas at
                        Dallas

                    

                  

                

              

            	 	 	
              
                
                  
                    
                      The
                        University of Texas at E1
                        Paso

                    

                  

                

              

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              David
                E. Daniel

              President

            	 	 	
            	
              
                

              

              Diana
                S. Natalicio

              President

            
	
            	
            	 	 	 	
            

      	
              
                
                  
                    
                      Andrews:

                    

                  

                

              

            	 	 	
              
                
                  
                    
                      Midland:

                    

                  

                

              

            
	 	 	 	 
	
              
                
                  
                    
                      
                        City
                          of Andrews

                      

                    

                  

                

              

            	 	 	
              
                
                  
                    
                      
                        Midland
                          Development
                          Corporation

                      

                    

                  

                

              

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              Robert
                Zap

              Mayor

            	 	 	
            	
              
                

              

              John
                James

              President

            
	
            	
            	 	 	 	
            

    

     

    Signature
      Page to Teaming Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              
                
                  
                    
                      
                        Andrews:
                          County

                      

                    

                  

                

              

            	 	 	
              
                
                  
                    
                      
                        Odessa:

                      

                    

                  

                

              

            
	 	 	 	 
	
              
                
                  
                    
                      
                         

                      

                    

                  

                

              

            	 	 	
              
                
                  
                    
                      
                        
                          Odessa
                            Development
                            Corporation

                        

                      

                    

                  

                

              

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              Richard
                Dolgener

              County
                Judge

            	 	 	
            	
              
                

              

              Robert
                Porter

              President

            
	
            	
            	 	 	 	
            

    

     

      	
              
                
                  
                    
                      
                        
                          GA:
                            

                        

                      

                    

                  

                

              

            	 	 	
              
                
                  
                    
                      
                        
                          Thorium
                            Power:

                        

                      

                    

                  

                

              

            
	 	 	 	 
	
              
                
                  
                    
                      
                        
                          General
                            Atomics

                        

                      

                    

                  

                

              

            	 	 	
              
                
                  
                    
                      
                        
                          
                            Thorium
                              Power,
                              Inc.

                          

                        

                      

                    

                  

                

              

            
	 	 	 	 
	
              By:
                

            	 	 	
              By:
                

            
	
            	
              
                

              

              Neal
                Blue

              Chief
                Executive Officer

            	 	 	
            	
              
                

              

              Seth
                H. Grae

              President

            
	
            	
            	 	 	 	
            

    

     

    Signature
      Page to Teaming AgreementNOTE

     

    
      	 	
              Albany,
                New York

            
	$1,000,000	
              January
                __,
                2006

            

    

     

    THE
      SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
      FEDERAL SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER
      THE
      SECURITIES LAW OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS
      (1) THERE IS AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
      ACT AND ANY APPLICABLE STATE SECURITIES LAW, (2) SUCH TRANSFER IS MADE IN
      COMPLIANCE WITH RULE 144 UNDER THE ACT AND PURSUANT TO REGISTRATION OR
      QUALIFICATION UNDER ANY APPLICABLE STATE SECURITIES LAW OR EXEMPTION THEREFROM,
      OR (3) THERE IS AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT
      SUCH
      REGISTRATION IS NOT REQUIRED AS TO SAID TRANSFER, SALE OR OFFER.

    

    For
      value
      received, TRACKPOWER, INC, a Wyoming corporation, having an office at 765
      15th
      Sideroad, King City, Ontario, Canada L7B 1K5 (“Maker”) promises to pay to the
      order of Melillo Investments, a Pennsylvania general partnership, having an
      office at 75 Amherst Drive, Phoenixville, PA 19460 (“Payee”), or at such other
      place as may be designated in writing by the holder of this Note, the principal
      sum of One Million Dollars ($1,000,000) (the "Loan"). Except
      as
      hereinafter provided, the entire principal amount shall be due and payable
      five
      years from the date first written above. 

     

    AND
      IT IS
      EXPRESSLY AGREED AS FOLLOWS:

    

    Definitions.
      For
      purposes of this Note the following terms shall be defined as set forth:

     

    “American
      Racing” shall mean and refer to American Racing and Entertainment, LLC, a New
      York limited liability company;

     

    "Collateral"
      shall mean the Pledged Collateral as defined in the Pledge Agreement
      (hereinafter defined);

     

    “Event
      of
      Default,” shall mean the occurrence or existence of any one or more of the
      following enumerated events or conditions (whatever the reason therefor and
      whether voluntary, involuntary or effected by operation of law): 

     

    Payments
      Under Loan Documents 

     

    The
      Maker
      shall fail to pay any principal of any Loan (including scheduled installments,
      mandatory prepayments or the payment due at maturity) within thirty (30) days
      of
      the date when due or shall fail to pay any interest on any Loan within thirty
      (30) days of the date when due or any other amount owing hereunder or under
      the
      Loan Documents after such principal, interest or other amount becomes due in
      accordance with the terms hereof or thereof;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Breach
      of Warranty.

     

    Any
      representation or warranty made at any time by the Maker herein or in any other
      Transaction Document, or in any certificate, other instrument or statement
      furnished pursuant to the provisions hereof or thereof, shall prove to have
      been
      false or misleading in any material respect as of the time it was made or
      furnished;

     

    Breach
      of Covenants.

     

    Maker
      shall default in the observance or performance of any covenant contained herein
      or in any other Transaction Document other than nonpayment of principal or
      interest on the Obligations and such default shall continue unremedied for
      a
      period of thirty (30) days after any officer of Maker becomes aware of the
      occurrence thereof (such grace period to be applicable only in the event such
      default can be remedied by corrective action of the Maker as determined by
      Payee
      in its sole discretion). 

     

    Defaults
      in Other Agreements or Indebtedness.

     

    A
      default
      or event of default shall occur at any time under the terms of any other
      agreement involving borrowed money or the extension of credit or any other
      indebtedness under which Maker may be obligated as a borrower or guarantor
      in
      excess of $500,000 in the aggregate, and such breach, default or event of
      default consists of the failure to pay (beyond any period of grace permitted
      with respect thereto, whether waived or not) any indebtedness when due (whether
      at stated maturity, by acceleration or otherwise) or if such breach or default
      permits or causes the acceleration of any indebtedness (whether or not such
      right shall have been waived) or the termination of any commitment to
      lend;

     

    Final
      Judgments or Orders.

     

    Any
      final
      judgments or orders for the payment of money in excess of $100,000 in the
      aggregate shall be entered against Maker by a court having jurisdiction in
      the
      premises, which judgment is not discharged, vacated, bonded or stayed pending
      appeal within a period of thirty (30) days from the date of entry. However,
      this
      provision shall not apply to items of litigation identified in the Confidential
      Private Placement Memorandum (i.e. the bankruptcy court proceedings and the
      judgment in California); 

     

    Transaction
      Document Unenforceable.

     

    Any
      of
      the Transaction Documents shall cease to be legal, valid and binding agreements
      enforceable against the party executing the same or such party's successors
      and
      assigns (as permitted under the Transaction Documents) in accordance with the
      respective terms thereof or shall in any way be terminated (except in accordance
      with its terms) or become or be declared, by court order, ineffective or
      inoperative or shall in any way cease to give or provide the respective liens,
      security interests, rights, titles, interests, remedies, powers or privileges
      intended to be created thereby;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Uninsured
      Losses; Proceedings Against Assets.

     

    There
      shall occur any material uninsured damage to or loss, theft or destruction
      of
      any of the Collateral in excess of $50,000.00 or the Collateral or any other
      of
      the Maker's assets are attached, seized, levied upon or subjected to a writ
      or
      distress warrant; or such come within the possession of any receiver, trustee,
      custodian or assignee for the benefit of creditors and the same is not cured
      within thirty (30) days thereafter;

     

    Notice
      of Lien or Assessment.

     

    A
      notice
      of Lien or assessment in excess of $150,000.00 is filed of record with respect
      to all or any part of the Maker's assets by the United States, or any
      department, agency or instrumentality thereof, or by any state, county,
      municipal or other governmental agency or any taxes or debts owing at any time
      or times hereafter to any one of these becomes payable and the same is not
      paid
      within thirty (30) days after the same becomes payable;

     

    Insolvency.

     

    The
      Maker
      ceases to be solvent or admits in writing its inability to pay its debts as
      they
      mature;

     

    Cessation
      of Business.

     

    The
      Maker
      ceases to conduct its business as contemplated, or is enjoined, restrained
      or in
      any way prevented by court order from conducting all or any material part of
      its
      business and such injunction, restraint or other preventive order is not
      dismissed within thirty (30) days after the entry thereof;

     

    Change
      of Control.

     

    Any
      person or group of persons (within the meaning of Sections 13(d) or 14(a)
      of the Securities Exchange Act of 1934, as amended) shall have acquired
      beneficial ownership of (within the meaning of Rule 13d-3 promulgated by the
      Securities and Exchange Commission under said Act) 20% or more of the voting
      capital stock of the Maker; or (ii) within a period of twelve (12)
      consecutive calendar months, individuals (other than by death) who were
      directors of the Maker on the first day of such period shall cease to constitute
      a majority of the board of directors of the Maker;

     

    Involuntary
      Proceedings.

     

    A
      proceeding shall have been instituted in a court having jurisdiction in the
      premises seeking a decree or order for relief in respect of Maker in an
      involuntary case under any applicable bankruptcy, insolvency, reorganization
      or
      other similar law now or hereafter in effect, or for the appointment of a
      receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
      (or similar official) of Maker for any part of its property (exceeding 40%
      of
      Maker’s assets) or for the winding-up or liquidation of its affairs, and such
      proceeding shall remain undismissed or unstayed and in effect for a period
      of
      thirty (30) consecutive days or such court shall enter a decree or order
      granting any of the relief sought in such proceeding; or

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Voluntary
      Proceedings.

     

    Maker
      shall commence a voluntary case under any applicable bankruptcy, insolvency,
      reorganization or other similar law now or hereafter in effect, shall consent
      to
      the entry of an order for relief in an involuntary case under any such law,
      or
      shall consent to the appointment or taking possession by a receiver, liquidator,
      assignee, custodian, trustee, sequestrator, conservator (or other similar
      official) of itself or for any substantial part of its property or shall make
      a
      general assignment for the benefit of creditors, or shall fail generally to
      pay
      its debts as they become due, or shall take any action in furtherance of any
      of
      the foregoing.

     

    “Loan,”
      shall mean and include the loan made pursuant to this Note.

     

    “Loan
      Documents,” shall mean and include the following documents: this Note and the
      Pledge and Security Agreement of even date herewith made by Maker in favor
      of
      Payee (the "Pledge Agreement"), the Limited Person Guaranty Agreements made
      by
      Kenneth Adelberg and John Simmonds dated of even date herewith in favor of
      Payee
      (the "Guaranty Agreements").

     

    “Transaction
      Documents,” shall mean and include this Note, the Subscription Agreement, the
      Confidential Private Placement Memorandum dated January 9, 2006 in connection
      with the offer and sale of this Note, the Pledge Agreement, the Guaranty
      Agreements and any other document executed by Maker as part of the
      Offering.

    

    1.
      Interest at a rate of 11% per annum shall be paid quarterly in arrears on the
      principal amount of the note beginning on March 31, 2006. Maker may prepay
      any
      principal hereunder without penalty. 

    

    2.
      This
      Note is secured by a Pledge Agreement of even date herewith made by Maker and
      if
      favor of Payee, covering all of Maker’s membership interests in American Racing,
      (the “Pledge Agreement”), the agreements, covenants and conditions of which are
      made a part hereof to the same extent and with the same force and effect as
      if
      fully set forth herein, and Maker covenants and agrees to keep and perform
      them,
      or cause them to be kept and performed. 

    

    3.
      The
      principal sum evidenced by this Note, together with any other sums due hereunder
      or under the Pledge Agreement shall become due, at the option of Payee, on
      the
      happening of any Event of Default under the terms of this Note, or on the
      happening of any Event of Default under the Pledge Agreement. Notwithstanding
      anything herein contained to the contrary, Payee shall have the option and
      right
      to require Maker, exercisable within 10 days of written notice by Maker to
      Payee
      that it has received a distribution or other payment from American Racing under
      the American Racing Operating Agreement or otherwise, to make a principal
      payment hereunder equal to 50% of said distribution or payment to Payee.
Promptly
      after any officer of Maker has learned of the Maker's entitlement to a
      distribution, dividend or other payment from American Racing, Maker shall
      deliver to Payee a certificate signed by the Chief Executive Officer, President
      or Chief Financial Officer of Maker setting forth the details, including amount
      and anticipated date of distribution of such payment.

    

    4.
      Promptly after any officer of Maker has learned of the occurrence of an Event
      of
      Default, Maker shall deliver to Payee a certificate signed by the Chief
      Executive Officer, President or Chief Financial Officer of maker setting forth
      the details of such Event of Default and the action which the party proposes
      to
      take with respect thereto. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.
      This
      Note may not be changed orally, but only by an agreement in writing and signed
      by all parties.

     

    6.
      The
      remedies of the holder hereof as provided herein or in the Pledge Agreement
      shall be cumulative and concurrent, and may be pursued singly, successively,
      or
      together at the sole discretion of the holder hereof, and may be exercised
      as
      often as occasion therefore shall occur. 

    

    7.
      Maker
      consents to any and all extensions of time, renewals, waivers, or modifications
      that may be granted by Payee hereof with respect to the payment or other
      provisions of this Note, and to the release of all Collateral or any part
      thereof, with or without substitution and all without impairing the obligations
      of the Maker or any other obligor hereunder or under the Pledge
      Agreement.

    

    8.
      Any
      notice, demand, request or other communication which Maker of this Note desires
      to give to the other hereunder shall be deemed sufficient if in writing and
      mailed by certified mail, return receipt requested, postage prepaid in the
      United States, and shall be deemed given as of the date indicated on a signed
      and dated certified mail receipt (or if refused, on the date refused).

     

    
      	(a)  	
              if
                to the Pledgor, at Pledgor’s address set forth
                above

            

    

    
       

      
        	with
                a copy
                to:              
                  	
                The
                  Towne Law Offices, P.C.

                421
                  New Karner Road

                Albany,
                  New York 12205

              

      

       

      
      

    

    
      	(b)  	
              if
                to the Lender, at its address set forth
                above

            

       

      
        	with
                a copy
                to:           
                        	
                Steven
                  W. Smith,  Esquire

                Buchanan
                  Ingersoll PC

                1835
                  Market Street, 14th Floor

                Philadelphia,
                  PA 19103

              

         

      

    

    or
      to
      such other address as either party may hereafter designate in writing.

    

    

    9.
      In the
      event that Maker completes a financing by way of debt private placement, for
      a
      minimum amount of $5,000,000, the amount due under this Note will become due
      and
      payable on the date of closing of such financing. 

    

    10.
      Maker
      agrees to issue to Payee 2,000,000 restricted shares of its common stock as
      a
      commitment fee to the Payee hereunder. Payee acknowledges that such shares
      will
      be issued without any registration rights whatsoever and will bear an
      appropriate legend stating that the shares cannot be sold without an effective
      registration statement or an appropriate legal opinion that states the sale
      falls within appropriate federal or state exemption laws.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    11.
      The
      obligations of Maker under this
      Note, the Pledge Agreement and the other Loan Documents do rank and will rank
      at
      least pari passu in priority of payment with all other indebtedness of.

    

    12.
      If
      any provision of this Note is held to be invalid or unenforceable by a court
      of
      competent jurisdiction, the other provisions of this Note shall remain in full
      force and effect and shall be liberally construed in favor of the holder hereof
      in order to effect the provisions of this Note.

    

    13.
      Other
      than as expressly provided in this Note, Maker hereby waives presentment,
      demand, notice, protest and all other demands and notices in connection with
      the
      delivery, acceptance, performance, default or enforcement of this
      Note

    

    14.
      THIS
      NOTE WILL BE GOVERNED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
      IN
      ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER ARISING
      OUT OF OR RELATED TO THIS NOTE, THE MAKER HEREBY IRREVOCABLY SUBMITS TO THE
      JURISDICTION OF THE COURT IN ALBANY COUNTY, NEW YORK OR FEDERAL COURT LOCATED
      IN
      THE NORTHERN DISTRICT OF NEW YORK SITTING IN ALBANY AND AGREES NOT TO RAISE
      ANY
      OBJECTION TO SUCH JURISDICTION OR TO THE LAYING OR MAINTAINING OF THE VENUE
      OF
      ANY SUCH PROCEEDING IN SUCH COUNTY. THE MAKER AGREES THAT SERVICE OF PROCESS
      IN
      ANY SUCH PROCEEDING MAY BE DULY EFFECTUATED BY MAILING A COPY THEREOF TO THE
      MAKER BY NATIONALLY RECOGNIZED OVERNIGHT COURIER WITH NO RECEIPT
      REQUIRED.

    

    15.
      MAKER
      HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY
      OR
      INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF OR RELATED TO THIS NOTE. THIS
      PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE.

    

    IN
      WITNESS WHEREOF, Maker has executed and delivered this Note as of the day and
      year first above written.

     

    
      	 	 	 
	 	TRACKPOWER,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Edward
              M. Tracy, President
	 	 

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    PLEDGE
      AND SECURITY AGREEMENT

     

    PLEDGE
      AND SECURITY AGREEMENT, dated as of January __, 2006, between TRACKPOWER INC.,
      a
      Wyoming corporation, having an address at 765 15th
      Sideroad, King City, Ontario, Canada L7B 1K5 (the “Pledgor”) and Melillo
      Investments, a Pennsylvania general partnership, having an office at 75 Amherst
      Drive, Phoenixville, PA 19460 (the “Lender”). 

    

    AND
      IT IS
      EXPRESSLY AGREED AS FOLLOWS:

    

    Definitions.
      For
      purposes of this Note the following terms shall be defined as set
      forth:

     

    "Event
      of
      Default,” shall mean the occurrence or existence of any one or more of the
      enumerated events or conditions (whatever the reason therefor and whether
      voluntary, involuntary or effected by operation of law) as specified in the
      Note

     

    “Pledged
      Collateral” shall mean and include the following: (i) the membership
      interests of Pledgor in American Racing and Entertainment, LLC (the "Limited
      Liability Company"), currently 25% of the total membership interests in the
      Limited Liability Company, and all rights and privileges pertaining thereto,
      including, without limitation, all membership interests and additional
      membership interests receivable in respect of or in exchange for such membership
      interests, all rights to subscribe for membership interests incident to or
      arising from ownership of such membership interests, all cash, interest, stock
      and other dividends or distributions paid or payable on such membership
      interests, and all books and records pertaining to the foregoing, including,
      without limitation, all stock record and transfer books, together with all
      payments to become due to such Pledgor in respect of such membership interests
      and under the Operating Agreement of the Limited Liability Company (the
“Operating Agreement”), whether as contractual obligations, damages, insurance
      proceeds or otherwise;, (ii) any and all other member interests hereafter
      pledged by Pledgor to the Lender to secure the Obligations of the Maker, and
      all
      rights and privileges pertaining thereto, including, without limitation, all
      member interests and additional member interests receivable in respect of or
      in
      exchange for such member interests, all rights to subscribe for member interests
      incident to or arising from ownership of such member interests, all cash,
      interest, stock, member interests and other dividends or distributions paid
      or
      payable on such member interests, and all books and records pertaining to the
      foregoing, and (iii) whatever is received when any of the foregoing is
      sold, exchanged or otherwise disposed of, including any proceeds as such term
      is
      defined in the Uniform Commercial Code, thereof. 

     

    1.
      SECURITY
      FOR NOTE.
      This
      Agreement is for the benefit of the Lender to secure on a first priority basis
      the payment and performance of that certain noted dated on even date herewith
      in
      the principal amount of $1,000,000 (the “Note”), the obligations hereunder and
      the obligations of the Pledgor arising out of or in connection with that certain
      Subscription Agreement dated on even date herewith by and between Lender and
      Pledgor (herein collectively called the “Obligations”).
      Obligation
      shall
      mean any obligation or liability of any of the Pledgor to the Lender, howsoever
      created, arising or evidenced, whether direct or indirect, absolute or
      contingent, now or hereafter existing, or due or to become due, under or in
      connection with this Agreement, the Note or any other Loan Document (as defined
      in the Note). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.
      ASSIGNMENT
      OF MEMBERSHIP INTERESTS.
      To
      secure the Obligations and for the purposes set forth in Section 1, the Pledgor
      hereby assigns, transfers, pledges and grants, as collateral security, a first
      priority security interest in all of Pledgor's now existing or hereafter
      acquired and /or arising right, title and interest in, to and under the Pledged
      Collateral, wherever located. 

    

    3.
      OTHER
      RIGHTS WITH RESPECT TO PLEDGED COLLATERAL.
      In
      addition to the other rights with respect to the Pledged Collateral granted
      to
      the Lender hereunder, at any time and from time to time, after and during the
      continuation of an Event of Default, the Lender, at its option and at the
      expense of the Pledgor, may (a) transfer into its own name, or into the
      name of its nominee, all or any part of the Pledged Collateral, thereafter
      receiving all dividends, income or other distributions upon the Pledged
      Collateral; (b) take control of and manage all or any of the Pledged
      Collateral; (c) apply to the payment of any of the Obligations, whether any
      be due and payable or not, any moneys, including cash dividends and income
      from
      any Pledged Collateral, now or hereafter in the hands of the Lender, on deposit
      or otherwise, belonging to any Pledgor, as the Lender shall determine; and
      (d) do anything which any Pledgor is required but fails to do hereunder.

     

    4.
      REMEDIES.
      Nothing
      contained herein shall allow Lender to retain any cash, compensation or other
      thing of value, in excess of that to which Lender is entitled under the terms
      of
      the Note and the other Loan Documents (as defined in the Note). Notwithstanding
      anything to the contrary contained in this Agreement, Lender agrees that it
      shall act in a commercially reasonable fashion in exercising any rights or
      remedies. Upon an Event of Default, the Lender shall be entitled to exercise
      all
      of the rights, powers and remedies (whether vested in it by this Agreement
      or by
      law) for the protection and enforcement of its rights in respect of the
      Collateral, and the Lender shall be entitled, without limitation, to exercise
      the following rights:

     

    
      	(a)  	
              to
                give all consents, waivers and ratifications in respect of the Pledged
                Collateral and otherwise act with respect thereto as though it were
                the
                outright owner thereof (the Pledgor hereby irrevocably constituting
                and
                appointing the Lender the proxy and attorney in-fact of the Pledgor,
                with
                full power of substitution to do so). ;
                and

            

    

    

    
      	(b)  	
              The
                Pledgor hereby waives and releases to the fullest extent permitted
                by law
                any right or equity of redemption with respect to the Pledged Collateral,
                acknowledging that only the Lender may hold such Pledged Collateral
                after
                default pursuant to this Agreement.

            

    

    

    5.
      ADDITIONAL
      REMEDIES UPON EVENT OF DEFAULT.
      Upon
      the occurrence of any Event of Default and while such Event of Default shall
      be
      continuing, the Lender shall have, in addition to all rights and remedies of
      a
      secured party under the Code or other applicable law, and in addition to its
      rights elsewhere herein and under the other Loan Documents, the following rights
      and remedies:

     

    The
      Lender may, after thirty (30) days' advance notice to the Pledgor, sell, assign,
      give an option or options to purchase or otherwise dispose of the Pledged
      Collateral or any part thereof at public or private sale, at any of the Lender's
      offices or elsewhere, for cash, on credit or for future delivery, and upon
      such
      other terms as the Lender may deem commercially reasonable. Pledgor agrees
      that
      thirty (30) days' advance notice of the time and place of any public sale or
      the
      time after which any private sale is to be made shall constitute reasonable
      notification. The Lender shall not be obligated to make any sale of Pledged
      Collateral regardless of notice of sale having been given. The Lender may
      adjourn any public or private sale from time to time by announcement at the
      time
      and place fixed therefor, and such sale may, without further notice, be made
      at
      the time and place to which it was so adjourned. Pledgor recognizes that the
      Lender may be compelled to resort to one or more private sales of the Pledged
      Collateral to a restricted group of purchasers who will be obliged to agree,
      among other things, to acquire such securities, shares, capital stock, member
      interests, partnership interests or ownership interests for their own account
      for investment and not with a view to the distribution or resale
      thereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    The
      proceeds of any collection, sale or other disposition of the Pledged Collateral,
      or any part thereof, shall, after the Lender has made all deductions of
      expenses, including but not limited to reasonable attorneys' fees and other
      expenses incurred in connection with repossession, collection, sale or
      disposition of such Pledged Collateral or in connection with the enforcement
      of
      the Lender's rights with respect to the Pledged Collateral, including in any
      insolvency, bankruptcy or reorganization proceedings, be applied against the
      Obligations, whether or not all the same be then due and payable, as
      follows:

     

    first,
      to
      the Obligations and to reimburse the Lender for out-of-pocket costs, expenses
      and disbursements, including without limitation reasonable attorneys' fees
      and
      legal expenses, incurred by the Lender in connection with realizing on the
      Pledged Collateral or collection of any obligation of any Pledgor under any
      of
      the Loan Documents, including advances made subsequent to an Event of Default
      by
      the Lender for the reasonable maintenance, preservation, protection or
      enforcement of, or realization upon, the Pledged Collateral, including without
      limitation advances for taxes, insurance, and the like, and reasonable expenses
      incurred to sell or otherwise realize on, or prepare for sale of or other
      realization on, any of the Pledged Collateral, in such order as the Lender
      may
      determine in its discretion; and

     

    the
      balance, if any, as required by law.

     

    6.
      REMEDIES,
      CUMULATIVE.
      Each
      right, power and remedy of the Lender provided for in this Agreement or now
      or
      hereafter existing at law or in equity or by statute shall be cumulative and
      concurrent and shall be in addition to every other such right, power or remedy.
      The exercise or beginning of the exercise by the Lender of any one or more
      of
      the rights, powers or remedies provided for in this Agreement or now or
      hereafter existing at law or in equity or by statute or otherwise shall not
      preclude the simultaneous or later exercise by the Lender of all such other
      rights, powers or remedies. Pledgor waives any right to require Lender to
      proceed against any other person or entity or to exhaust any of the Pledged
      Collateral or other security for the Obligations or to pursue any remedy in
      the
      Lender's power.

    

    7.
      FURTHER
      ASSURANCES.
      The
      Pledgor agrees that it will join with the Lender in executing and, at its own
      expense, file and refile under the Uniform Commercial Code or any similar
      statute of any other jurisdiction, such financing statements, continuation
      statements and other documents in such offices as the Lender may deem reasonably
      necessary or appropriate and wherever required or permitted by law in order
      to
      perfect and preserve the Lender’s security interest in the Pledged Collateral
      and hereby authorizes the Lender to file financing statements and amendments
      thereto relative to all or any part of the Pledged Collateral and agrees to
      do
      such further acts and things and to execute and deliver to the Lender such
      additional conveyances, assignments, agreements and instruments as the Lender
      may reasonably require or deem advisable to carry into effect the purposes
      of
      this Agreement or to further assure and confirm unto the Lender its rights,
      powers and remedies hereunder.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    8.
      TRANSFER
      BY THE PLEDGOR.
      The
      Pledgor will not sell or otherwise dispose of, grant any option with respect
      to,
      or mortgage, pledge or otherwise encumber any of the Pledged Collateral or
      any
      interest therein.

    

    9.
      REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF THE PLEDGOR.
      The
      Pledgor represents and warrants that:

    

    (a)
      it is
      the legal and beneficial owner of, and has good and marketable title to, the
      Pledged Collateral assigned hereunder, subject to no pledge, lien, mortgage,
      hypothecation, security interest, charge, option or other encumbrance
      whatsoever, except the liens and security interests created by this
      Agreement;

     

    (b)
      it
      has full power, authority and legal right to assign all the Pledged Collateral
      assigned hereunder and to execute and perform this Agreement;

     

    (c)
      this
      Agreement has been duly authorized, executed and delivered by such Pledgor
      and
      constitutes a legal, valid and binding obligation of such Pledgor enforceable
      in
      accordance with its terms except as enforcement may be limited by bankruptcy,
      insolvency and other laws affecting the enforcement of creditors’ rights
      generally, by moratorium laws from time to time in effect, and by general
      principles of equity;

     

    (d)
      no
      consent of any other party (including, without limitation, any member, manager,
      stockholder, member or creditor of the Pledgor) and no consent, license, permit,
      approval or authorization of, exemption by, notice or report to, or
      registration, filing or declaration with, any governmental authority is required
      which has not been obtained by the Pledgor in connection with the execution,
      delivery or performance by the Pledgor of this Agreement;

     

    (e)
      the
      execution, delivery and performance of this Agreement will not violate any
      provision of any applicable law or regulation or of any order, judgment, writ,
      award or decree of any court, arbitrator or governmental authority, domestic
      or
      foreign, or of the operating agreement, certificate of incorporation or by-laws
      (as applicable) of the Pledgor or of any securities issued by the Pledgor,
      or of
      any mortgage, indenture, lease, contract or other agreement, instrument or
      undertaking to which the Pledgor is a party or which is binding upon the Pledgor
      or upon any of its assets and will not result in the creation or imposition
      of
      any lien or encumbrance on any of the assets of the Pledgor except as
      contemplated by this Agreement. 

     

    (f)
      by
      virtue of the execution and delivery by the Pledgor of this Agreement and,
      at
      Lender’s option, the filing of UCC-1 financing statements, which financing
      statements will, at Lender’s option, be duly and validly filed in the
      appropriate offices, the Lender will obtain a valid and perfected lien upon
      and
      security interest in all of the Pledgor’s right, title and interest as a member
      in the Limited Liability Company (the “Limited Liability Company Interest”), as
      security for the repayment of the Obligations, prior to the rights of all other
      third parties and all other liens and encumbrances thereon and security interest
      therein.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (g)
      it
      will defend the Lender’s right, title and security interest in and to the
      Pledged Collateral and the proceeds thereof against the claims and demands
      of
      all persons whomsoever; and the Pledgor covenants and agrees that it will have
      like title to and right to pledge any other property at any time hereafter
      pledged or assigned to the Lender as additional Pledged Collateral hereunder
      and
      will likewise defend the right thereto and security interest therein of the
      Lender. 

     

    (h)
      the
      member interests constituting the Pledged Collateral have been duly authorized
      and validly issued to Pledgor and are fully paid and nonassessable, are
      uncertificated and constitute 100% of the membership interests in the Limited
      Liability Company owned by the Pledgor.

     

    (i)
      the
      security interests in the Pledged Collateral granted hereunder are valid,
      perfected and of first priority. 

     

    (j)
      there
      are no restrictions upon the transfer of the Pledged Collateral pursuant to
      this
      Agreement and Pledgor has the power and authority and right to transfer the
      Pledged Collateral free of any encumbrances and without obtaining the consent
      of
      any other Person. 

     

    (k)
      other
      than litigation pending before the bankruptcy court and in other litigation
      identified in the Confidential Private Placement Memorandum (i.e. the $264,000
      judgment in California), there are no actions, suits, or proceedings pending
      or,
      to Pledgor's best knowledge after due inquiry, threatened against or affecting
      Pledgor with respect to the Pledged Collateral, at law or in equity or before
      or
      by any Official Body, and Pledgor is not in default with respect to any
      judgment, writ, injunction, decree, rule or regulation which could adversely
      affect Pledgor's performance hereunder. 

     

    (l)
      the
      exact legal name of Pledgor is as set forth on the signature page hereto.

     

    (m)
      the
      state of formation or organization as applicable, of Pledgor is as set forth
      in
      the preamble hereto and the registered address of Pledgor in Wyoming is c/o
      Registered Agency Services, Inc, 1912 Capitol Avenue, Cheyenne, Wyoming
      82001-3660. 

     

    (n)
      in
      the event that the Limited Liability Company should ever issue certificates,
      securities, instruments or other documents evidencing the Pledged Collateral,
      the Pledgor will deliver to and deposit with the Lender in pledge, all such
      certificates, securities, instruments or other documents which evidence the
      Pledged Collateral. 

     

    (o)
      Pledgor shall do all reasonable acts that may be necessary and appropriate
      to
      maintain, preserve and protect the Pledged Collateral and shall be responsible
      for the risk of loss of, damage to, or destruction of the Pledged Collateral,
      unless such loss is the result of the gross negligence or willful misconduct
      of
      the Lender. 

     

    (p)
      Pledgor shall keep separate, accurate and complete records of the Pledged
      Collateral owned by Pledgor, disclosing the Lender's security interest
      hereunder. 

     

    (q)
      Pledgor shall comply with all laws applicable to the Pledged Collateral unless
      such noncompliance would not individually or in the aggregate materially impair
      the use or value of the Pledged Collateral or the Lender's rights hereunder.
      

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (r)
      Pledgor shall pay any and all taxes, duties, fees or imposts of any nature
      imposed by any state, federal or local authority on any of the Pledged
      Collateral, except to the extent contested in good faith by appropriate
      proceedings. 

     

    (s)
      Pledgor shall permit the Lender, its officers, employees and agents at
      reasonable times to inspect all books and records related to the Pledged
      Collateral. 

     

    (t)
      to
      the extent, following the date hereof, Pledgor acquires membership interests
      in
      the Limited Liability Company or any of the rights, property or membership
      interests described in the definition of Pledged Collateral with respect to
      the
      Limited Liability Company, such rights, property or membership interests or
      securities shall be, upon such acquisition, pledged to the Lender. 

     

    (u)
      Pledgor will not change its state of incorporation, formation or organization,
      as applicable without providing thirty (30) days prior written notice the
      Lender. 

     

    (v)
      Pledgor will not change its name without providing thirty (30) days prior
      written notice to the Lender. 

     

    (w)
      Pledgor shall preserve its existence and shall not (i) in one, or a series
      of
      related transactions, merge into or consolidate with any other entity, the
      survivor of which is not the Pledgor, or (ii) sell all or substantially all
      or
      its assets. 

     

    (x)
      during the term of this Agreement, Pledgor shall not sell, assign, transfer
      or
      otherwise dispose of the Pledged Collateral. 

     

    (y)
      Pledgor shall at any time and from time to time take such steps as the Lender
      may reasonably request as are necessary for the Lender to insure the continued
      perfection of the Lender's security interest in the Pledged Collateral with
      the
      same priority required hereby and the preservation of its rights therein.

     

    (z)
      during the term of this Agreement, Pledgor shall not permit the Limited
      Liability Company to treat any uncertificated ownership interests as securities
      which are subject to Article 8 of the Code. 

     

    10.
      PLEDGOR’S
      OBLIGATIONS ABSOLUTE.
      Except
      as otherwise provided, the obligations of the Pledgor under this Agreement
      shall
      be absolute and unconditional and shall remain in full force and effect without
      regard to, and shall not be released, suspended, discharged, terminated or
      otherwise affected by, any circumstance or occurrence whatsoever, including,
      without limitation: (a) any renewal, extension, amendment or modification of
      or
      addition or supplement to or deletion from the Capital Contribution Agreement,
      the Note or any other instrument or agreement referred to therein, or any
      assignment or transfer of any thereof; (b) any waiver, consent, extension,
      indulgence or other action or inaction under or in respect of any such agreement
      or instrument or this Agreement; (c) any furnishing of any additional security
      to the Lender or any acceptance thereof or any release of any security by the
      Lender; (d) any limitation on any party’s liability or obligations under any
      such instrument or agreement or any invalidity or unenforceability, in whole
      or
      in part, of any such instrument or agreement or any term thereof; or (e) any
      bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
      liquidation or other like proceeding relating to the Pledgor, or any action
      taken with respect to this Agreement by any trustee or receiver, or by any
      court, in any such proceeding, whether or not the Pledgor shall have notice
      or
      knowledge of any of the foregoing. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    11.
      TERMINATION
      OF RELEASE.
      At such
      time as the principal of and interest on the Note has been paid in full and
      all
      other obligations under the Loan Documents have been satisfied, this Agreement
      shall terminate, and the Lender, at the request and expense of the Pledgor,
      will
      execute and deliver to the Pledgor a proper instrument or instruments
      acknowledging the satisfaction and termination of this Agreement, and will,
      subject to the requirements of law, duly assign, transfer and deliver to the
      Pledgor (without recourse and without any representation or warranty) such
      of
      the Pledged Collateral as may be in-the possession of the Lender and as has
      not
      theretofore been sold or otherwise applied or released pursuant to this
      Agreement. 

    

    12.
      PARI
      PASSU.
      The
      obligations of Pledgor under this Agreement, the Note and each of the other
      Loan
      Documents do rank and will rank at least pari passu
      in
      priority of payment with all other indebtedness of Pledgor. 

    

    13.
      NOTICES.
      All
      notices and other communications hereunder shall be in writing, shall be
      effective upon receipt and shall be delivered or mailed by first class mail,
      postage prepaid, addressed, as follows: 

    

    if
      to the
      Pledgor, at Pledgor’s address set forth above

     

    
      
         

        	with
                a copy
                to:              
                  	
                The
                  Towne Law Offices, P.C.

                421
                  New Karner Road

                Albany,
                  New York 12205

              

        
           

        

      

    

    (b)
      if to
      the Lender, at its address set forth above

     

    
      
        	with
                a copy
                to:              
                  	
                Steven
                  W. Smith,  Esquire

                Buchanan
                  Ingersoll PC

                1835
                  Market Street, 14th Floor

                Philadelphia,
                  PA 19103

              

        
           

        

      

    

    or
      at
      such other address as shall have been furnished in writing by any person
      described above to the party required to give notice hereunder.

    

    14.
      MISCELLANEOUS.
      This
      Agreement shall be binding upon the successors and permitted assigns of the
      Pledgor and shall inure to the benefit of and be enforceable by the Lender
      and
      its successors and assigns. This Agreement may be changed, waived, discharged
      or
      terminated only by an instrument in writing signed by the party against which
      enforcement of such change, waiver, discharge or termination is sought. This
      Agreement shall be construed and enforced in accordance with a governed by
      the
      law of the State of New York. The headings in this Agreement are for purposes
      of
      reference only and shall not limit or define the meaning hereof. In any judicial
      proceeding involving, directly or indirectly, any matter arising out of or
      related to this Agreement, the parties hereby irrevocably submit to the
      exclusive jurisdiction of the state court located in Albany County in the State
      of New York or federal court located in Northern District in the State of New
      York sitting in Albany and the parties agree not to raise any objection to
      such
      jurisdiction or to the laying or maintaining of the venue of any such proceeding
      in such court. Lender agrees that this provision represents a material
      inducement for entering into this Agreement. The Pledgor agrees that service
      of
      process in any such proceeding may be duly effected by mailing a copy thereof
      to
      the Pledgor by nationally recognized overnight courier with no receipt required.
      This Agreement may be executed in any number of counterparts and by facsimile
      signature, each of which shall be an original but all of which shall constitute
      one instrument. In the event that any provision of this Agreement shall prove
      to
      be invalid or unenforceable, such provision shall be deemed to be severable
      from
      the other provisions of this Agreement which shall remain binding on all parties
      hereto.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    15.
      LENDER'S
      DUTIES.
      The
      powers conferred on the Lender hereunder are solely to protect its interest
      in
      the Pledged Collateral and shall not impose any duty upon it to exercise any
      such powers. Except for the safe custody of any Pledged Collateral in its
      possession and the accounting for moneys actually received by it hereunder,
      the
      Lender shall have no duty as to any Pledged Collateral or as to the taking
      of
      any necessary steps to preserve rights against prior parties or any other rights
      pertaining to any Pledged Collateral.

    

    IN
      WITNESS WHEREOF, the Pledgor and the Lender have executed by this Agreement
      as
      of the date first above written.

     

    
      	 	 	 
	 	PLEDGOR:
	 
 	
               

              TRACKPOWER
                INC.
  

            
	 	By:  	 
	 	
              
Edward
              M. Tracy, President
	 	 

    

     

    
      	 	 	 
	 	LENDER:
	 
 	 
Melillo
              Investments (a Pennsylvania General
              Partnership) 
 
	 	By:  	 
	 	
              
George
              Melillo, Sr. 
	 	 

    

    
      
        
        

      

      
        8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]