Exhibit 10.1

                        SETTLEMENT AGREEMENT AND RELEASE

     This Settlement Agreement and Release  ("Agreement") is effective as of the
31st day of August, 2005, by and between WilTel Communications,  LLC ("WilTel"),
a Delaware limited liability company (f/k/a Williams  Communications,  LLC), and
Interland, Inc. ("Interland"), a Minnesota corporation and successor-in-interest
to Hostcentric, Inc. ("Hostcentric").

                                    RECITALS

     WHEREAS the Parties,  by and through their predecessor  companies,  entered
into a Network  Services  Agreement  ("NSA")  dated  June 30,  2000,  as amended
November 1, 2002,  May 1, 2002,  May 31, 2002 and May 14, 2003,  wherein  WilTel
would provide certain telecommunications services to Hostcentric; and

     WHEREAS the NSA provided that  Hostcentric  could  terminate the NSA at any
time upon  ninety  days  written  notice to WilTel and  payment of an  Agreement
Termination  Fee "equal to the net present value  (discounted at the annual rate
of nine percent (9%)) of the difference  between:  (X) one-half of Hostcentric's
remaining  aggregate Minimum Commitment as of the termination date, (Y) less the
aggregate  amount by which each payment for Applicable  Services  (including any
Deficiency  Amounts paid) has exceeded the total of monthly Minimum  Commitments
accrued as of the termination date;" and

     WHEREAS Interland sold its dedicated hosting assets to Peer 1 Network, Inc.
("Peer  1"),  a  Canadian  corporation,  and,  as a result of such  transaction,
desires to terminate the NSA and pay the Agreement Termination Fee; and

     WHEREAS the Parties  have  disagreed  on the method to be used to calculate
the Agreement Termination Fee, and now desire to settle that disagreement;

     NOW,  THEREFORE,  in exchange for the mutual promises  contained herein and
other good and valuable  consideration,  the receipt and sufficiency of which is
hereby acknowledged, the Parties agree as follows:

     1.   NSA Termination. The parties hereby agree that the NSA shall be deemed
          terminated effective as of August 31, 2005.

     2.   Agreement  Termination  Fee.  Interland shall pay to WilTel a one-time
          Agreement  Termination  Fee of seven  hundred fifty  thousand  dollars
          ($750,000.00).  Said fee  shall be due and  payable  immediately  upon
          execution   of  this   Agreement,   by   wire   transfer   to   WilTel
          Communications,  c/o Bank of  Oklahoma,  Tulsa,  OK,  Account  Number:
          010649443, ABA Number: 103900036.


<PAGE>

     3.   Transition  Period.  Notwithstanding  termination  of  the  NSA  under
          paragraph  1,  pursuant  to  Section  3.5 of  the  NSA  regarding  the
          post-cancellation  transition  period WilTel shall continue to provide
          the services being provided to Interland,  as of the effective date of
          this  Agreement  (the  "Continuous   Services")  and  Interland  shall
          continue  to pay for said  services  as outlined on Exhibit A attached
          hereto, on a month-to-month  basis, under same terms and conditions as
          set forth in the NSA, as amended,  and the  applicable  Schedules  and
          Service Orders in effect as of the date of this Agreement, except that
          Interland    may   terminate    the    Continuous    Services   on   a
          circuit-by-circuit  basis  and  shall  give  WilTel  thirty  (30) days
          written  notice of the date  upon  which it  desires  that each of the
          Continuous  Services be  terminated,  which  notice  shall be given no
          earlier than  December 8, 2005.  Interland  shall  continue to pay the
          regular monthly  recurring fee for each of the Continuous  Services in
          the  amounts as  outlined  on Exhibit A attached  hereto (the total of
          which  for the  Continuous  Services  in  effect  as of the  Agreement
          Effective   Date  is  seventy  two   thousand   one  hundred   dollars
          ($72,100.00)).  In  the  event  any  of the  Continuous  Services  are
          terminated  after  January  7, 2006  pursuant  to this  Section 3, the
          $72,100  cost  will  be  reduced  accordingly.  WilTel  agrees  to use
          commercially  reasonable  efforts to work with Interland and Peer 1 in
          order to minimize disruption upon termination of WilTel services.

          Notwithstanding  the  foregoing,  in the  event  that  WilTel  has not
          received notice of termination  for all of the Continuous  Services by
          April  1,  2006,  WilTel  may at any  time  thereafter  terminate  the
          Continuous Services upon thirty (30) days notice to Interland.

     4.   Compromise  and Denial of  Liability.  The parties agree that they are
          entering  into this  Agreement as a  compromise  to avoid the cost and
          expense  of  possible  litigation.  The  Parties'  performance  of all
          obligations  set forth in this  Agreement  shall  finally  settle  and
          resolve  all claims  asserted  or which  could have been  asserted  by
          either of them in regard to the Agreement  Termination  Fee owed under
          the NSA. The payment,  consideration and covenants herein provided are
          not be to  construed  as an admission of liability by any Party on the
          basis  asserted by another  Party,  and any such alleged  liability is
          expressly  denied.  Each party agrees to bear its own attorneys' fees,
          costs and expenses incurred in connection with this dispute.

     5.   Release of Claims.  Upon  performance of the  obligations set forth in
          paragraphs 1 through 3 of this Agreement,  and in consideration of the
          promises and  covenants  contained  herein,  each Party,  on behalf of
          itself  and  its  predecessors,   successors,  parents,  subsidiaries,
          affiliates,  assigns, directors, officers, employees, agents and legal
          representatives,   hereby  fully  and  finally  releases  and  forever


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<PAGE>

          discharges the other Party and its predecessors,  successors, parents,
          subsidiaries,  affiliates,  assigns, directors,  officers,  employees,
          agents and legal  representatives,  from any and all claims, causes of
          action, liens, claims, suits, judgments, rights, damages, loss, costs,
          expenses or demands, whether known or unknown, asserted or unasserted,
          matured or unmatured,  liquidated or unliquidated, at law or in equity
          ("Claims"),  which the releasing Party has or at any time may have had
          as a result of, or in connection with the Agreement Termination Fee.

     6.   Indemnification. The Parties each agree to save, defend, indemnify and
          hold harmless the other against any claims,  causes of action,  liens,
          claims, suits,  judgments,  rights,  damages, loss, costs, expenses or
          demands  (including  attorney's  fees) arising out of or in connection
          with any breach of a  representation,  covenant  and/or  warranty  set
          forth herein.

     7.   Confidentiality.  The Parties agree that neither of them will disclose
          the  terms  of  this  Agreement  or any  matters  pertaining  to  this
          settlement  unless  such  disclosure  is (i)  lawfully  required  by a
          governmental  agency  or order of a court of  competent  jurisdiction;
          (ii)  otherwise  required to be  disclosed  by law;  (iii)  reasonably
          required  to be  made  to  accountants  and/or  financial  consultants
          retained by the  parties in the normal  course of their  business  and
          operations;  (iv)  reasonably  required  to be  made  to the  Internal
          Revenue  Service or governing  state tax authorities for tax purposes;
          or (v)  necessary  in any legal  proceeding  in order to  enforce  any
          provisions of this Agreement.  The Parties agree that they will notify
          each other in writing  within five (5) calendar days of the receipt of
          any  subpoena,   court  order,  or   administrative   order  requiring
          disclosure of information  subject to this  non-disclosure  provision.
          Notwithstanding  the foregoing,  WilTel  acknowledges  and consents to
          Interland's  disclosure of this Agreement only to the extent Interland
          deems  necessary to comply with U.S.  securities laws and the rules of
          any applicable national exchange.

     8.   Complete  Agreement.  This  document  contains the complete  Agreement
          between the Parties with respect to its subject  matter and supercedes
          any and all prior agreements, understanding, promises, warranties, and
          representations made by each Party to the other concerning the subject
          matter.

     9.   Execution.  This Agreement may be executed in identical  counterparts,
          each of which  shall  constitute  an  original  and all of which shall
          constitute  one and the  same  Agreement.  In  addition,  the  parties
          understand,  agree and stipulate  that facsimile  signatures  shall be
          sufficient to bind the signing parties to their respective obligations
          hereunder,  and the parties may rely on such  facsimile  signatures in
          carrying out their obligations.  Original  signatures shall thereafter
          be provided to the parties.  The Parties agree to execute and exchange
          any such further  documentation as may be reasonably  required to give
          effect to the Agreement.



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<PAGE>

     10.  Modification.  This  Agreement  may  be  modified  only  by a  written
          document signed by the Parties.  No waiver of this Agreement or of any
          of the promises,  obligations,  terms,  or conditions  hereof shall be
          valid  unless it is written and signed by the Party  against  whom the
          waiver is to be enforced.

     11.  Binding Effect.  This Agreement shall be binding upon and inure to the
          benefit  of  the  Parties  thereto,  their  predecessors,  successors,
          parents,   subsidiaries,   affiliates,   assigns,  agents,  directors,
          officers,  employees,  and attorneys.  Each of the signatories of this
          Agreement  represents  and warrants  that he is  authorized to execute
          this Agreement and to bind the Parties hereto.

     12.  Severability.  If any part or any provision of this Agreement shall be
          finally determined to be invalid or unenforceable under applicable law
          by a court of competent jurisdiction,  that part or provision shall be
          ineffective to the extent of such invalidity or unenforceability only,
          without in any way affecting the remaining  parts of said provision or
          the remaining provisions of this Agreement.

     13.  Warranties.  The Parties  hereby  warrant and represent that they have
          not assigned or in any way  transferred or conveyed all or any portion
          of the claims covered by this Agreement,  and to their  knowledge,  no
          other  person or entity has a right to any claim that  purports  to be
          settled by this Agreement. The Parties acknowledge and agree that this
          warranty and  representation is an essential and material term of this
          Agreement,  without  which  they would not have  entered  into it. The
          Parties each agree to defend and to hold each other  harmless  against
          the claims of any other  person or entity  asserting  a claim or right
          that purports to be settled by the Agreement.

     14.  Voluntary  Agreement.  The Parties  acknowledge that they have had the
          opportunity  to consult with legal counsel of their  choosing prior to
          entering  into this  Agreement,  that they  know and  understand  this
          Agreement's  contents  and  their  legal  effect,  and  that  they are
          executing  this  Agreement  knowingly and  voluntarily,  free of undue
          influence, coercion or duress of any nature whatsoever.

     15.  No  Construction  Against  Drafter.  The  Parties  cooperated  in  the
          drafting  of this  Agreement,  and in the event that it is  determined
          that any provision  herein is ambiguous,  that provision  shall not be
          presumptively construed against either Party.



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<PAGE>

     16.  Enforcement. In the event that a Party seeks to enforce the provisions
          of this Agreement,  the prevailing  Party shall recover its attorneys'
          fees and costs incurred therein.

     17.  Governing Law. This Agreement  shall be governed in all respects under
          the laws of the State of New  York,  regardless  of its  choice of law
          rules.

     IN WITNESS  WHEREOF,  the Parties  hereto have caused this  Agreement to be
executed on the date set forth beneath each Party's respective signature.


WILTEL COMMUNICATIONS, LLC                INTERLAND, INC.

/s/ M.F. deVerges                         /s/ Gonzalo Troncoso
---------------------------------         ----------------------------------
Signature of Authorized Representative    Signature of Authorized Representative

M.F. deVerges                             Gonzalo Troncoso
--------------------------------          ----------------------------------
Printed Name                              Printed Name

SVP & CFO                                 CFO
---------------------------------         ----------------------------------
Title                                     Title

12/8/05                                   12/8/05
---------------------------------         ----------------------------------
Date                                      Date


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<PAGE>


                                    EXHIBIT A
                               CONTINUOUS SERVICES


<TABLE>
<CAPTION>
<S>                       <C>                                  <C>
------------------------- ------------------------------------ ----------------------------------------------
     CIRCUIT NUMBER              LOCATION/DESCRIPTION                      MONTHLY RECURRING FEE
------------------------- ------------------------------------ ----------------------------------------------
      01-CRF-0152               Santa Clara, CA - colo              $1400.00 (2-23" Racks, 30 DC Amps)
------------------------- ------------------------------------ ----------------------------------------------
       00-CRF-645               Santa Clara, CA - colo          $700.00 (1-19" Rack, 20 AC Amps, 30 DC Amps
------------------------- ------------------------------------ ----------------------------------------------
       TWC671876               Palo Alto, CA - GigE DIA              $11,400.00 (325Mbps min commit)*
------------------------- ------------------------------------ ----------------------------------------------
       TWC1114543                Miami, FL - GigE DIA                $11,400.00 (325Mbps min commit)*
------------------------- ------------------------------------ ----------------------------------------------
       TWC1116898               Atlanta, GA - GigE DIA               $11,400.00 (325Mbps min commit)*
------------------------- ------------------------------------ ----------------------------------------------
       TWC1136562                Miami, FL - GigE DIA                $11,400.00 (325Mbps min commit)*
------------------------- ------------------------------------ ----------------------------------------------
       TWC1136563               Atlanta, GA - GigE DIA               $11,400.00 (325Mbps min commit)*
------------------------- ------------------------------------ ----------------------------------------------
       TWC942096              Santa Clara, CA - GigE DIA             $11,400.00 (325Mbps min commit)*
------------------------- ------------------------------------ ----------------------------------------------
       TWC633995                 Orlando,FL - DS3 DIA                  $1,600.00 (45Mbps full rate)
------------------------- ------------------------------------ ----------------------------------------------
</TABLE>

* all usage above minimum commit level (95th percentile peak) billed at $35/Mbps





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