|
Exhibit 10.1
RELEASE AND SETTLEMENT AGREEMENT
This Release and Settlement Agreement is entered into by and
between the United States of America, acting through the United
States Attorney’s Office for the Eastern District of
Virginia, (hereinafter referred to as the "United States"), and
GovConnection, Inc. (hereinafter referred to as
"GovConnection").
BACKGROUND
I. The claims of the United States in this matter arise out of
the Federal Supply Schedule contract awarded by the General
Services Administration (GSA) to ComTeq Federal, Inc.
(Contract No. GS-35F-4572G) on or about April 30, 1997, and
events set forth in letters dated November 22, 2004 and
February 17, 2005, from the U.S. Attorney’s Office to
counsel for GovConnection.
II. ComTeq Federal, Inc. has been purchased by PC Connection,
Inc. ("PC Connection") and continues to operate as a wholly-owned
subsidiary of PC Connection. ComTeq Federal was renamed
GovConnection, Inc. in January 2002.
III. This Release and Settlement Agreement shall not be
considered as an admission of liability or wrongdoing on the part
of GovConnection or any affiliates thereof.
TERMS AND CONDITIONS
For and in consideration of the mutual promises and
representations set forth herein, GovConnection and the United
States agree as follows:
1. GovConnection shall pay to the United States the total sum of
Two Million Five Hundred and Fifty Thousand and 00/100
($2,550,000), within ten (10) days of the date of this Release
and Settlement Agreement.
All payments shall be made by wire transfer to
the "United States Department of Justice" in accordance with the
written instructions received from the United States
Attorney’s Office for the Eastern District Financial
Litigation Unit, 101 West Main Street, Suite 8000, Norfolk,
Virginia 23510.
2. In consideration of the terms described in paragraph 1 above,
the United States agrees that it waives and releases GovConnection
and PC Connection, including all predecessor entities and PC
Connection, and the officers, directors and employees of
GovConnection and such predecessor entities, from any civ
| 
