The settlement was announced Tuesday on the second day of a trial.
The trial will continue. A judge is still considering whether the state or local government should contribute to a fund to pay for medical monitoring of the children.
None of the nearly 100 children who went to Kiddie Kollege in Franklinville has symptoms. But mercury vapors can cause brain and kidney problems.
If the judge decides against creating the fund, the $1 million that real estate broker Jim Sullivan and his family agreed to pay would go to charity.