SETTLEMENT AND RELEASE AGREEMENT

This SETTLEMENT AND RELEASE AGREEMENT (this “Agreement”), is entered into as of this 10th day of April, 2007, by and between Benacquista Galleries Inc., a Nevada corporation, with its principal executive offices at 6870 La Valle Plateada Rancho, Santa Fe, California 92067 (“Benacquista”), and James Price, an individual, with his principal place of business at 6870 La Valle Plateada Rancho, Santa Fe, California 92067 (“Price”) (each of Benacquista and Price, individually, a “Party”, and collectively, the “Parties”).

WHEREAS, on January 31, 2003 Price and Benacquista entered into an agreement for the sale of certain collectible, investment grade works of art held in Price’s personal collection, and in consideration for which Benacquista issued Price an unsecured promissory note in the principal amount of $862,127, bearing interest at a rate of five percent (5%) per annum, and payable in full on or before June 30, 2005, with no prior periodic payments due (the “Note”);

WHEREAS, as of the date hereof the Note remains unpaid, with the outstanding principal balance together with all interest accrued thereon at $1,104,187.01;

WHEREAS, in addition to the Note, Benacquista has accumulated a total outstanding debt of approximately $226,652.95 payable to Price for accrued but as yet unpaid salary, rent and certain cash advances (the “Additional Obligations”);

WHEREAS, as of the fiscal year ended September 31, 2006, Benacquista had the works of art remaining in its inventory, as set forth in Schedule A annexed hereto (the “Works of Art”), valued by a third party appraiser at approximately $1,404,500 ; and

WHEREAS, Price desires to acquire and Benacquista desires transfer all of its rights, title and interest in and to the Works of Art in settlement of any and all remaining obligations under the terms of the Note and of all Additional Obligations;

NOW, THEREFORE, in consideration of the forgoing, and of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby covenant and agree as follows:

1.   Settlement and Satisfaction of All Obligations. Upon execution of this Agreement or as at a time as soon as reasonably practicable thereafter, Benacquista shall deliver to Price all of the remaining Works of Art, as set forth in Schedule A, in full satisfaction of the outstanding principal balance of the Note, all interest accrued thereon and of all Additional Obligations accrued through the date hereof.

2.   Mutual and General Release.

2.1   Price hereby fully, forever, irrevocably and unconditionally releases, remises and discharges Benacquista and its officers, directors, stockholders, affiliates, attorneys, agents and employees from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature whatsoever which he may have ever had or now has against Benacquista or its officers, directors, stockholders, affiliates, attorneys, agents and employees, including, without limitation, any and all claims arising out of the Note or other Additional Obligations.

2.2   Benacquista hereby fully, forever, irrevocably and unconditionally releases, remises and discharges Price and his attorneys, agents and employees from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature whatsoever which it may have ever had or now has against Price or his attorneys, agents and employees, including, without limitation, any and all claims arising out of the Note or other Additional Obligations.

2.   Representations and Warranties of Price. Price hereby represents and warrants to Benacquista, as of the date hereof:

2.1   No other person has any interest in or rights to the Note, any of the obligations thereunder or any of the other Additional Obligations;

2.2   Neither the Note, the proceeds thereof, nor the proceeds of the Additional Obligations have been assigned, pledged, hypothecated, discharged or otherwise encumbered by Price;

2.3   Price has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Price and, upon due execution and delivery by Price, this Agreement shall constitute the valid and binding obligation of Price, enforceable in accordance with its terms, except to the extent that enforceability may be limited by applicable law or general principles of equity.

3.   Representations and Warranties of Benacquista. Benacquista hereby represents and warrants to Price, as of the date hereof:

3.1   No other person has any right, title or interest in or to any of the Works of Art;

3.2   The Works of Art have not been encumbered, pledged, hypothecated, sold, assigned, transferred or otherwise disposed of by Benacquista;

3.2   Benacquista has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Benacquista and, upon due execution and delivery by Benacquista, this Agreement shall constitute the valid and binding obligation of Benacquista, enforceable in accordance with its terms, except to the extent that enforceability may be limited by applicable law or general principles of equity.

 

4.   Miscellaneous.

4.1   Expenses. Each of the Parties hereto shall bear their own expenses in connection with the transactions contemplated by this Agreement, including, without limitation, attorneys’ fees and costs and any expenses incurred in relation to the filing of notices with federal or state securities commissions or regulatory authorities.

4.2   Further Action. Each of the Parties hereto shall execute and deliver all documents, provide all information, and take or forbear from taking all such action as may be reasonably necessary or appropriate to achieve the purpose of this Agreement.

4.3   Entire Agreement. This Agreement constitutes the full and entire Agreement by and between the Parties with regard to the subject matter hereof and supersedes all prior agreements between the Parties, whether written or verbal. The failure by either Party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such Party. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived, generally or in a particular instance and either retroactively or prospectively, only with the written consent of the Parties hereto.

4.4   Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each of the Parties hereto and their respective successors, legal representatives and assigns.

4.5   Notices. Any notice or other communication required or permitted by this Agreement shall be given in writing and shall be deemed sufficient when delivered personally, or on the first attempted date of delivery after being mailed by certified or registered mail, return receipt requested, to the Parties at the addresses first set forth at the beginning of this Agreement or at such other address as shall be specified by the Parties by like notice.

4.6   Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one instrument.

4.7   Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the validity of this Agreement shall not be affected thereby and the remaining provisions shall continue in full force and effect, construed as if such unenforceable provision was not a part of this Agreement.

4.8   Headings. The headings and captions contained in this Agreement are for reference purposes only and shall not affect, in any way, the meaning or interpretation of this Agreement.

4.9   Governing Law; Jurisdiction; Jury Trial. This Agreement shall be governed in all respects by the laws of the State of Nevada, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Nevada or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Nevada. Each Party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Reno, Nevada, for the adjudication of any dispute hereunder or in connection herewith, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each Party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such Party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first appearing above.