Document:

EXHIBIT
10.1

 

IN THE UNITED
STATES COURT OF FEDERAL CLAIMS

Bid Protest

	
  SPHERIX, INC,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Plaintiff,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  v.

  	
   

  	
   

  	
  Civil
  Action No. 06-55C

  
	
   

  	
   

  	
   

  	
  (Judge
  Susan G. Braden)

  
	
   

  	
   

  	
   

  	
   

  
	
  THE UNITED STATES,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Defendant,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  RESERVEAMERICA HOLDINGS, INC.,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Defendant-Intervenor.

  	
   

  	
   

  	
   

  

 

SETTLEMENT AGREEMENT

This SETTLEMENT AGREEMENT (“Agreement”) is made and entered into by and among Spherix
Incorporated, a Delaware corporation (“Spherix”), and the United States of America (“United States”), collectively the “Parties”.

PREAMBLE:

WHEREAS, Spherix submitted a
proposal in response to U.S. Department of Agriculture, National Forest Service
(“USDA” or “Forest
Service”) Solicitation No. WO-04-06VM (“The Solicitation”) to
develop and operate a consolidated National Recreation Reservation Services
(“NRRS”) system.

WHEREAS, in June of 2005, the
USDA awarded a contract to ReserveAmerica (the “NRRS
Contract”) pursuant to the Solicitation.

WHEREAS, Spherix filed a protest
challenging USDA’s award of the NRRS Contract to ReserveAmerica and such
protest has been docketed as Spherix, Inc. v. United States of America,
Civil Action No. 06-55C in the United States Court of Federal Claims (the “Spherix Protest”).

WHEREAS, Spherix and the United
States now desire to compromise and settle all issues raised in the Protest and
by USDA’s June 2005 award of the NRRS Contract to ReserveAmerica.

 1
 

 

NOW THEREFORE, in consideration
of the promises and covenants contained herein, the parties to this Agreement
do hereby agree, represent, and covenant as follows:

1.             Payment to Spherix.  The United States
agrees to pay to Spherix the sum of Three Million, Two Hundred and Fifty
Thousand Dollars ($3,250,000) (the “Principal Amount”)
in accordance with the following terms:

a.             For
purposes of this agreement, “Payment” means wire transfer of the Principal
Amount into the bank account designated by Spherix.

b.             For
purposes of receiving Payment of the Principal Amount, Spherix designates the
following bank account:

	
  

  	
   

  	
  Bank Name:

  	
   

  	
  Citibank FSB

  
	
   

  	
   

  	
   

  	
   

  	
  500 W. Madison

  
	
   

  	
   

  	
   

  	
   

  	
  Chicago, IL 60661

  
	
   

  	
   

  	
  ABA/Routing Number:

  	
   

  	
  271-070-801

  
	
   

  	
   

  	
  Account Number:

  	
   

  	
  800529670

  
	
   

  	
   

  	
  Account Name:

  	
   

  	
  Winston & Strawn LLP

  
	
   

  	
   

  	
   

  	
   

  	
  CE Control IOLTA

  
	
   

  	
   

  	
  Reference:

  	
   

  	
  Spherix, Inc. Number 103510

  

 

2.             Dismissal of Protest and Release of Claims.  Spherix
hereby agrees that upon receipt from the United States of the Principal Amount
it will dismiss, with prejudice, the Spherix Protest and forever release all
protests, claims, causes of action, suits or demands Spherix may have now, or
in the future, concerning USDA’s award of the NRRS Contract under the
Solicitation.

3.             Binding effect.  This Agreement shall
inure to the benefit of, and be binding upon, the parties hereto and their
successors and assigns, except as is expressly provided to the contrary herein.
This Agreement shall not confer any rights or remedies upon any Person other
than the parties hereto and their respective successors and assigns.

4.             No Admission of Liability.  This Agreement
is entered into solely for the purposes of resolving disputed claims based on
disputed facts and allegations and to avoid the inconvenience and expense of
litigation. The parties deny any wrongdoing or liability of any kind in
connection with the Protest or the Forest Service’s June 2005 contract award to
ReserveAmerica under Solicitation No. WO-04-06VM to provide a consolidated
National Recreation Reservation Services system.

5.             Counterparts.  This Agreement may be
executed by facsimile and in several counterparts, each of which shall be
deemed an original, and said counterparts shall constitute but one and the same
instrument, which may be sufficiently evidenced by any one counterpart.

6.             Representation of Authority.  The
parties represent and warrant that: (1) they have carefully read this
Agreement; (2) they know and understand the contents thereof; (3) they have had
the opportunity to discuss it and its effects with their advisors and
attorneys; (4) they have

 2
 

 

signed it as their free
and voluntary act; and (5) they, and the signatories hereto, have full and
legal authority to enter  into this
binding agreement on their behalf.

IN WITNESS WHEREOF, the parties
hereto have entered into this Settlement Agreement, which shall be considered
“executed” as of the date both parties have signed the Agreement.

	
  /s/ Eric J. Marcotte

  	
   

  	
  PETER D. KEISLER

  
	
  Eric J. Marcotte

  	
   

  	
  Assistant Attorney General

  
	
  WINSTON & STRAWN LLP

  	
   

  	
  /s/ David M. Cohen

  
	
  1700 K Street, N.W.

  	
   

  	
  DAVID M. COHEN

  
	
  Washington, DC 20006

  	
   

  	
  Director

  
	
  (202) 282-5721

  	
   

  	
   

  
	
  Fax: (202) 282-5100

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Kyle Chadwick

  
	
  Counsel of Record for Plaintiff Spherix Inc.

  	
   

  	
  KYLE CHADWICK

  
	
   

  	
   

  	
  Senior Trial Counsel

  
	
  Dated: October 18, 2006

  	
   

  	
  Commercial Litigation Branch

  
	
   

  	
   

  	
  Civil Division

  
	
   

  	
   

  	
  Department of Justice

  
	
   

  	
   

  	
  Attn: Classification Unit

  
	
   

  	
   

  	
  1100 L Street, N.W., 8th Floor

  
	
   

  	
   

  	
  Washington, D.C. 20530

  
	
   

  	
   

  	
  Tele: (202) 305-7562

  
	
   

  	
   

  	
  Fax: (202) 305-7644

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for Defendant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated: October 19, 2006

  

 

 

 

 

 3EXHIBIT
10.2

SETTLEMENT AGREEMENT

 

This SETTLEMENT AGREEMENT (“Agreement”)
is made and entered into as of October 18, 2006, by and among ReserveAmerica
Holdings, Inc., a Delaware Corporation (“ReserveAmerica”)
and Spherix, Incorporated, a Delaware corporation (“Spherix”),
collectively the “Parties”.

PREAMBLE:

WHEREAS, Spherix submitted a
proposal in response to U.S. Department of Agriculture, National Forest Service
(“USDA” or “Forest
Service”) Solicitation No. WO-04-06VM (“The Solicitation”) to
develop and operate a consolidated National Recreation Reservation Services
(“NRRS”) system.

WHEREAS, in June of 2005, the
USDA awarded a contract to ReserveAmerica (the “NRRS
Contract”) pursuant to the Solicitation.

WHEREAS, Spherix filed a protest
challenging USDA’s award of the NRRS Contract to ReserveAmerica and such
protest has been docketed as Spherix, Inc. v. United States of America,
Civil Action No. 06-55C in the United States Court of Federal Claims (the “Spherix Protest”). ReserveAmerica, as the awardee of the
NRRS Contract, intervened in the Protest; 

WHEREAS, Spherix has entered
into an Agreement with the Government of the United States (the “Government Agreement”) pursuant to which Spherix has agreed
to dismiss the Spherix Protest with prejudice upon USDA’s satisfaction of its
obligations under the Government Agreement.

WHEREAS, Spherix and
ReserveAmerica now desire to compromise and settle all issues raised in the
Protest, and by USDA’s June 2005 award of the NRRS Contract to ReserveAmerica;

NOW THEREFORE, in consideration
of the promises and covenants contained herein, the parties to this Agreement
do hereby agree, represent, and covenant as follows:

1.             Dismissal of Protest and Release of Claims.  Spherix
hereby agrees that in return for ReserveAmerica’s payment of $2,750,000, under
the terms specified herein, it will dismiss the Spherix Protest and forever
release all protests, claims, causes of action, suits or demands Spherix may
have now, or in the future, concerning USDA’s award of the NRRS Contract.

2.             ReserveAmerica Payment to Spherix.  ReserveAmerica
agrees to pay to Spherix the sum of Two Million, Seven Hundred and Fifty
Thousand Dollars ($2,750,000) (the “Principal Amount”)
in accordance with the following terms:

a.             Within
three (3) calendar days of the execution of this Agreement, ReserveAmerica
shall transfer, by wire, the Principal Amount into a trust account for the
benefit of Spherix, as maintained by the law firm of Winston & Strawn,
counsel to Spherix, as follows:

 1
 

                Winston
& Strawn Escrow Account:

	
  

  	
  Bank Name:

  	
   

  	
  Citibank FSB

  
	
   

  	
   

  	
   

  	
  500 W. Madison

  
	
   

  	
   

  	
   

  	
  Chicago, IL 60661

  
	
   

  	
  ABA/Routing Number:

  	
   

  	
  271-070-801

  
	
   

  	
  Account Number:

  	
   

  	
  800529670

  
	
   

  	
  Account Name:

  	
   

  	
  Winston & Strawn LLP

  
	
   

  	
   

  	
   

  	
  CE Control IOLTA

  
	
   

  	
  Reference:

  	
   

  	
  Spherix, Inc. Number 103510.

  

 

b.             The
funds shall be released from the trust account and paid to Spherix upon the
dismissal, with prejudice, of the Spherix Protest, provided, however, that the
funds shall revert to ReserveAmerica, with accrued interest, should the Spherix
Protest not be dismissed, with prejudice, prior to December 1, 2006, in which
event this Agreement shall be mutually deemed null and void and of no legal
effect.

4.             Mutual release of claims.  Subject to
ReserveAmerica’s payment of the amounts provided for, Spherix releases, waives,
and abandons all claims it has or may have in the future against ReserveAmerica,
its officers, agents, or employees, arising out of or relating to award of the
NRRS Contract prior to the date of this settlement agreement, including without
limitation all claims for costs, expenses, attorney fees, compensatory damages,
exemplary damages, and interest. ReserveAmerica releases, waives, and abandons
all claims it has or may have in the future against Spherix, its officers,
agents, or employees, arising out of or relating to award of the NRRS Contract
prior to the date of this settlement agreement, including without limitation
all claims for costs, expenses, attorney fees, compensatory damages, exemplary
damages, and interest.

5.             Binding effect.  This Agreement shall
inure to the benefit of, and be binding upon, the parties hereto and their
successors and assigns, except as is expressly provided to the contrary herein.
This Agreement shall not confer any rights or remedies upon any Person other
than the parties hereto and their respective successors and assigns.

6.             No Admission of Liability.  This
Agreement is entered into solely for the purposes of resolving disputed claims
based on disputed facts and allegations and to avoid the inconvenience and
expense of litigation. The parties deny any wrongdoing or liability of any kind
in connection with the Protest or the Forest Service’s June 2005 contract award
to ReserveAmerica under Solicitation No. WO-04-06VM to provide a consolidated
National Recreation Reservation Services system.

7.             Additional Documents.  The parties
agree to take all steps and execute all documents necessary to effectuate the
purposes of this Agreement.

8.             Counterparts.  This Agreement may be
executed by facsimile and in several counterparts, each of which shall be
deemed an original, and said counterparts shall constitute but one and the same
instrument, which may be sufficiently evidenced by any one counterpart.

 2
 

9.             Representation of Authority.  The
parties represent and warrant that: (1) they have carefully read this
Agreement; (2) they know and understand the contents thereof; (3) they have had
the opportunity to discuss it and its effects with their advisors and
attorneys; (4) they have signed it as their free and voluntary act; and (5)
they, and the signatories hereto, have full and legal authority to enter  into this binding Agreement on their behalf.

IN WITNESS WHEREOF, the parties
hereto have entered into this Settlement Agreement as of the date first above
written.

	
  

  	
  RESERVEAMERICA HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Metzger

  
	
   

  	
  Name:

  	
  Robert S. Metzger

  
	
   

  	
  Title:

  	
  Counsel for ReserveAmerica Holdings, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  SPHERIX, INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric J. Marcotte

  
	
   

  	
  Name:

  	
  Eric J. Marcotte

  
	
   

  	
  Title:

  	
  Counsel for Spherix Incorporated

  

 

 3

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