SETTLEMENT AGREEMENT AND GENERAL RELEASE
The following is a Settlement Agreement and General Release (the "Agreement") by and among THE
SMALL BUSINESS COMPANY, INC. (hereafter referred to as "SBCO") and, TERRY OSTROWIAK
(hereafter referred to as “OSTROWIAK ”, regarding any and all past and present known and unknown claims
and disputes (and their future effects) that have arisen or could arise out of the events described in the recitals
below. SBCO and OSTROWIAK may be collectively referred to herein as the "PARTIES".
For the purposes of this Agreement, the PARTIES addresses of record are 674 Via de la Valle, Ste.
226, Solana Beach, CA 92075.
“Effective date” shall mean “effective date” shall mean that all of the transactions contemplated herein,
including but not limited to those related to the issuance of stock pursuant to the terms of this Agreement will have
occurred on or before June 30, 2008.
A. SBCO is a corporation duly formed, existing, and operating in good standing under the laws of the
State of Delaware.
B. On or about January 1, 2008, OSTROWIAK and SBCO entered into a written consulting agreement
whereby OSTROWIAK agreed to provide consulting services to SBCO.
The consulting agreement is attached to this settlement agreement and incorporated herein by reference.
The terms of the consulting agreement provided that SBCO would pay OSTROWIAK cash money upon
presentation of his invoice for payment. OSTROWIAK presented his invoice for a total of sixteen thousand, six
hundred and sixty seven dollars [$16,667.00] to SBCO for payment. SBCO offered to pay OSTROWIAK in
shares of restricted stock rather than cash money, and the PARTIES thereafter entered into good faith
negotiations in this regard. This culminated in SBCO offering, and OSTROWIAK agreeing to accepting an
issuance of restricted common shares instead of cash money to retire the debt, and that the cost basis evaluation
for such issuance shall be set at two cents [$0.02] per share,