Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Icoworks, Inc. - Exhibit 10.3

CAUSE NO. 2003-41017

	ICOWORKS HOLDINGS, INC.	)	IN THE DISTRICT COURT OF
	 	)	 
	V.	)	HARRIS COUNTY, TEXAS
	 	)	 
	NETWORK INTERNATIONAL INC.	)	 
	PREMIER AUCTIONEERS	)	 
	INTERNATIONAL INC., AND	)	 
	CRAID CANNON	)	125TH JUDICIAL DISTRICT

 RELEASE AND SETTLMENT AGREEMENT  

      This Release and Settlement
  Agreement (“Agreement”) is entered into to be effective as of the
  29th of August, 2003, by and between Icoworks Holdings, Inc. (“Plaintiff”),
  Network International Inc. and Premier Auctioneers International, Inc. (collectively
  “Settling Defendants”), and James Richie, David Long and Scott Felker
  (collectively, the “Individuals”). In this Agreement, the Plaintiffs,
  the Settling Defendants and the Individuals may sometimes be referred to collectively
  as the “Parties”. 

      1.  WHEREAS, there is a
  lawsuit pending in the District Court of Harris County, Texas styled Cause No.
  2003-41017; Icoworks Holdings, Inc. v. Network International Inc., Premier
  Auctioneers International Inc., and Craig Cannon (the “Lawsuit”).

      2. WHEREAS, the Parties desire
  to avoid any further controversy regarding matters currently and/or potentially
  at issue between them in the Lawsuit or otherwise; 

      3. THEREFORE, to accomplish
  that end, the Parties, in consideration of the covenants and payment provided
  for herein, have agreed to compromise and settle fully their dispute and any
  potential dispute between them on the terms set out below. 

      4. Release by the Plaintiffs:
  For good consideration, Plaintiff acting for itself, its agents, officers, representatives
  and attorneys, individually and collectively, hereby RELEASE, ACQUIT and DISCHARGE
  Settling Defendants, individually and collectively, and each of their respective
  present and former employees, officers, directors, agents, subsidiaries, affiliates,
  successors, successors in interest, predecessors, assigns, insures, and attorneys,
  of and from any and all claims, demands, liabilities or causes of action, legal
  or equitable, of any kind whatsoever from the beginning of the world to the
  date hereof, including but not limited to those relating to or arising from
  the allegations made the basis of any claims in the Lawsuit and from any and
  all claims, demands, liabilities or causes of action that were made or could
  have been made in the Lawsuit or that accrued on or before the effective date
  of this Agreement by, between or among the Parties; provided, however, that
  notwithstanding anything in this paragraph or Agreement, Plaintiff does not
  release, acquit or discharge Defendant Craig Cannon from any claims. 

      5. Release by the Individuals:
  For good considerations, the Individuals and hereby RELEASE, ACQUIT and
  DISCHARGE Settling Defendants, individually and collectively, and each of their
  respective present and former employees, officers, directors, agents, subsidiaries,
  affiliates, successors, successors in interest, predecessors, assigns, insurers,
  and attorneys, of and from any and all claims, demands, liabilities, contracts
  or causes of action, legal or equitable, of any kind whatsoever from the beginning
  of the world to the date thereof, including but not limited to those relating
  to or arising from the allegations made the basis of any claims in the Lawsuit
  and from any and all claims, demands, liabilities or causes of action that were
  made or could have been made in the Lawsuit or that accrued on or before the
  effective date of this Agreement by, between or among the Parties. The Individuals
  expressly disclaim any right to purchase or otherwise obtain ownership of any
  real property from Settling Defendants. 

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      6. Release by Settling Defendants:
  For good consideration, Settling Defendants hereby RELEASE, ACQUIT and DISCHARGE
  the Plaintiff and the Individuals, and each of their respective employees, former
  employees, officers, directors, agents, subsidiaries, affiliates, successors,
  successors in interest, predecessors, assigns, insures, and attorneys of and
  from any and all claims, demands, liabilities or causes or action, legal or
  equitable, of any kind whatsoever from the beginning of the world to the date
  hereof, including but not limited to those relating to or arising from the allegations
  made the basis of the Lawsuit and from any and all claims, demands, liabilities
  or causes or action that were made or could have been made in the Lawsuit or
  that the accrued before the effective date of this Agreement by and between
  the Parties; provided, however, that notwithstanding anything in this paragraph
  or Agreement, Settling Defendants do not release, acquit or discharge Defendant
  Craig Cannon from any claims. 

      7. Dismissal of Lawsuit With
  Prejudice: For the consideration cited herein, the Plaintiff and Settling
  Defendants hereby agree to dismiss all claims against each other in the Lawsuit,
  including without limitation any claims and counterclaims, with prejudice, with
  each party to bear and be responsible for their own costs and attorney’s
  fees. 

      8. Payment to Settling Defendants:
  For good consideration, Plaintiff agrees to pay Defendant Network International
  Inc. the total sum of $1,000,000.00 (One Million Dollars) before 5:00 p.m. today,
  by delivery of a bank check in that amount payable to Settling Defendants’
  attorneys of record, Gibbs & Bruns, L.L.P. (the “First Payment”).
  Settling Defendants agree that such funds will not be released to Settling Defendants
  by Gibbs & Bruns, L.L.P. until 1) stock certificates representing 100% of
  Premier Auctioneers International Inc. are endorsed and delivered to the offices
  of James D. Pierce with any and all stock transfer records and corporate books;
  and 2) a master assignment of all contracts to be assigned is delivered to 

3

 Plaintiff’s counsel; and 3) a CD Rom of the hybrid software
  is delivered to Icoworks in Tulsa. Plaintiff further agrees to pay Defendant
  Network International Inc. the total sum of $400,000.00 (Four Hundred Thousand
  Dollars) on the business day following Network International Inc.’s declaration
  that it is in receipt of documentation releasing a bridge loan mortgage, or
  on Monday, September 8, 2003, whichever is later (the “Second Payment”).
  The Second Payment shall be by check from the trust account of James Pierce,
  made payable to Network International Inc. 

      9.  Conveyance of Premier
  and Land to Plaintiff: For good consideration, Settling Defendants agree
  to convey all of the assets and shares of Premier Auctioneers International,
  Inc. to Plaintiff, effective immediately upon receipt today of the First Payment.
  The terms of such conveyance are set forth in the letter agreement between the
  parties dated July 11, 2003 (attached as Exhibit “A” hereto), of which
  paragraph 6, 7, 10, 12, 13, 14 and 16 remains applicable and is in full force
  and effect. The parties agree to complete and sign the Asset Purchase Agreement,
  attached hereto as Exhibit “B”, and to take reasonable steps to effect
  to smooth transition of the Premier Auctioneer business from Settling Defendants
  to Plaintiff, including executing such documents necessary to effect this agreement.
  Other than filling in the blanks, no changes shall be made to Exhibit B unless
  by Agreement of both Network International, Inc. and Icoworks Holdings, Inc.

      Further, Settling Defendants
  agree to convey by General Warranty Deed to Plaintiff the real property located
  in Midland County, Texas which is more particularly described in Exhibit “C”
  hereto (the “Land”). Such conveyance shall be made on the day following
  Network International Inc.’s declaration that it is in receipt of documentation
  releasing bridge loan mortgage, but in no event earlier than Monday, September
  8, 2003. Such conveyance shall be accomplished by Network International Inc.
  executing and delivering the General Warranty 

4

 Deed (attached hereto as Exhibit “B”) to Plaintiff
  immediately following Network International Inc.’s receipt of the Second
  Payment. Network will cause the releases of the bridge loans to be delivered
  with the General Warranty Deed for filing in the appropriate county. 

      The Parties agree to defend
  against any efforts by any other person or entity to prevent the conveyance
  of the Land. However, it is agreed by the Parties that Plaintiff remains obligated
  to accept conveyance of the Land (and to make the Second Payment to Network
  International Inc. on the same day) unless any Party to this Agreement is judicially
  enjoined or restrained from doing so. Further, if a Party becomes judicially
  enjoined or restrained from completing conveyance of the Land to Plaintiff,
  then it is agreed that Plaintiff shall remain obligated to accept conveyance
  of the Land (and to make the Second Payment to Network International Inc. on
  the same day as such conveyance) immediately upon the expiration or removal
  of such injunction or restraint. 

      10. Execution: Each of
  the Parties is executing this Agreement on behalf of themselves as well as on
  behalf of their employees, former employees, officers, directors, agents, subsidiaries,
  affiliates, successors, successors in interest, predecessors, assigns, insurers,
  and attorneys, with the exception of Craig Cannon. 

      11. Representation of No
  Transfer: The Plaintiff and the Individuals represent that they have not
  transferred, subrogated, hypothecated, assigned or otherwise encumbered, in
  whole or in part, to any entity or individual, any of the claims they may have
  against Settling Defendants. 

      12. Biding Effect: This
  Agreement shall inure to the benefit of and be binding upon the successors,
  successors in interest, assigns, heirs, legal representatives and insurers of
  the Parties. 

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      13. Counterparts: This
  Agreement may be executed in multiple counterparts, each of which shall be deemed
  to be and have the same force and effect of an original, and all of which, taken
  together, shall constitute and be constructed as a single agreement. A copy
  of this Agreement shall have the same force and effect as an original. 

      14. Confirmation of Agreement:
  The signatures to this Agreement represent that they have read it, have
  consulted with counsel regarding its terms, fully understand the rights and
  obligations described in this Agreement, and execute this Agreement of their
  own free will. 

      15. Authorization for Execution:
  The signatories to this Agreement represent and warrant that they are duly authorized
  to execute this Agreement on behalf of the Parties that they represent. 

      16. Entire Agreement: This
  Agreement embodies the entire agreement between the Parties and supersedes any
  and all representations, discussions, or agreements concerning the matters addressed
  herein. In making this Agreement, the Parties warrant that they have not relied
  upon any statements or representations other than what is contained in this
  Agreement. The Agreement may be amended only by an instrument in writing executed
  by the Parties, except that the authorized legal representative of any party
  may execute such an agreement on behalf of any party. 

      17. Construction: This
  Agreement shall not be construed against any party because of such party’s
  involvement in the preparation or drafting of this Agreement. This Agreement
  is entered into so as to avoid a potentially expensive and time-consuming dispute
  and shall not be construed as an admission of liability or wrongdoing by any
  Party. All such liability is specially denied. 

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      18. Jurisdiction and Governing
  Law: This Agreement shall be enforced in accordance with the laws of the
  State of Texas. Venue of any litigation concerning this Agreement shall be in
  Harris County, Texas. 

	 	NETWORK INTERNATIONAL INC.
	 	 	 
	 	By: 	/s/ Boyd Heath
	 	 	

	 	 	Boyd Heath, CEO
	 	 	 
	 	ICOWORKS HOLDING, INC.
	 	 	 
	 	By:	/s/ Graham Douglas
	 	 	

	 	 	Graham Douglas
	 	 	 
	 	JAMES RICHIE, Individually
	 	 	 
	 	 	 
	 	
	

	 	 	 
	 	DAVID LONG, Individually
	 	 	 
	 	 	 
	 	
	

	 	 	 
	 	SCOTT FELKER, Individually
	 	 	 
	 	 	 
	 	
	

7Filed by Automated Filing Services Inc. (604) 609-0244 - Icoworks, Inc. - Exhibit 10.4

 THIS AGREEMENT is made as at the [day] day of [month], 2003. 

BETWEEN:

	 	(1)	ICOWORKS, INC., ICOWORKS SERVICES LTD., ICOWORKS EASTERN
      LTD. (collectively referred to as Icoworks)
	 	 	 
	 	(2)	[NAME OF JOINT VENTURER] (Joint Venturer)
	 	 	 
	 	(3)	[NAME OF JOINT VENTURER] (Joint Venturer)
	 	 	 
	 	(4)	[NAME OF JOINT VENTURER] (Joint Venturer)
	 	 	 
	 	(5)	__________________ (Joint Venturer)
	 	 	 
	 	(6)	__________________ (Joint Venturer)
	 	 	 
	 	(7)	ICOWORKS JOINT VENTURES INC.

JOINT VENTURE AGREEMENT 

WHEREAS:

“Joint Venture” means the joint venture created by this agreement.

“Joint Venturer” means a Joint Venturer who has agreed to participate in this agreement.

 “Joint Venturers” means all Joint Venturers who
  have agreed to participate in this agreement. 

 “Inventory” means goods and/or equipment acquired
  by Icoworks Joint Ventures Inc. for resale to third parties. 

 “Proportionate Share” means with respect to each
  Joint Venturer its undivided interest in the Inventory and in the Joint Venture,
  expressed as a percentage proportionate to each Joint Venturer’s contribution.

 IN CONSIDERATION of the mutual covenants contained in this
  agreement, and other good and valuable consideration (the receipt and sufficiency
  of which is acknowledged by each of the parties), the parties agree as follows:

	1.	The business of the Joint Venture shall be carried
      on under the name Icoworks Joint Ventures Inc.
	 	 
	2.	The purpose of the Joint
        Venture is to purchase through Icoworks Joint Ventures Inc. various types
        of assets being liquidated in Receiverships and Bankruptcies, and resell
        same in accordance with the practice of the Auction and Liquidation Industry
        using the services of Icoworks.

	 	 
	3.	The Joint Venturers will
        provide financing support in the form of cash to Icoworks Joint Ventures
        Inc. for the purchase of such assets upon the recommendation of Icoworks.

	 	 
	4.
   	Icoworks shall arrange for
        the purchase and sale of the said assets whether by Auction or otherwise.
        It is anticipated that Icoworks will incur specific sale costs for each
        transaction relating to the marketing and promotion of the purchased goods
        (“Sale Costs”). Icoworks Joint Ventures Inc. shall pay to Icoworks
        3.5% of the gross sale price of the assets to compensate for Sale Costs.
        It is also anticipated that there may be additional third party direct
        costs, including without limiting the generality of the foregoing, finder’s
        fees, repair, refurbishing, storage and transportation of goods, store
        rentals, store staffing, materials, processing costs, direct labor, project
        management and lodging (“Additional Costs”). The Additional
        Costs shall be paid by Icoworks Joint Ventures Inc. prior to calculation
        of the gross profit for distribution to the parties. However, Additional
        Costs shall not include Icoworks overhead.

	 	 
	5.	The gross profit (being
        the sale price of each completed sale, less acquisition costs, Sale Costs
        and Additional Costs) shall be calculated and distributed quarterly within
        60 days of the end of the calendar quarter as follows:

	 	 	 
	 	(1)	65% to Icoworks;
	 	(2)	35% to be divided proportionately between the Joint Venturers.

 

	6.	Icoworks hereby guarantees to each Joint
        Venturer that each Joint Venturer will earn a minimum of a 15% return
        on it’s investment annually prorated for part years and calculated
        on an accrual basis.

	 	 
	7.	Icoworks, Icoworks Joint Ventures Inc.
        and the Joint Venturers shall each be responsible for their own costs
        of operation, assessment, general and administration expenses.

	 	 
	8.	The term of this agreement shall be
        for a minimum of one year and maximum of three years. The Joint Venturers
        or any of them may terminate their relationship and receive their initial
        investment at any time after one year by three months advance notice in
        writing. Icoworks may terminate at any time after two years by three months
        advance notice in writing.

	 	 
	9.	The Joint Venturers acknowledge that
        a Joint Venture exists with respect to the inventory owned by Icoworks
        Joint Ventures Inc. from time to time.

	 	 
	10.	No partnership is created by this agreement.
        Nothing contained in this agreement shall or shall be deemed to constitute
        the Joint Venturers nor any other party to this agreement as partners
        nor as agent of the other nor any other relationship whereby either could
        be held liable for any act or omission of the other. Neither Joint Venturer
        shall have any authority to act for the other or to incur any obligation
        on behalf of the other or of the Joint Venture save as specifically provided
        by this agreement. Each Joint Venturer covenants to indemnify the other
        from all claims, losses, costs, charges, fees, expenses, damages, obligations
        and responsibilities incurred by a Joint Venturer by reason of any action
        or omission of the other outside the scope of the authority specifically
        provided by this agreement.

	 	 
	11.	Except as provided in this agreement
        each Joint Venturer may independently engage in any business endeavour
        whether or not competitive with the objects of the Joint Ventures, without
        consulting the other Joint Venturer and without in any way being accountable
        to the Joint Venture.

	 	 
	12.	Icoworks Joint Ventures Inc. acknowledges
        that it will hold title to the Inventory as bare trustee and nominee for
        and on behalf of the Joint Venturers each as to its Proportionate Share.
        Icoworks Joint Ventures Inc. will execute a General Security Agreement
        for the benefit of the Joint Venturers.

	 	 
	13.	The Financial records shall be accounted
        for as a Joint Venture and not as a limited company or partnership in
        accordance with generally accepted accounting principles.

 

	14.	The business affairs of the Joint Venture
        and Icoworks Joint Ventures Inc. shall be managed by Icoworks with the
        intention to maximize gross profit. Icoworks shall report quarterly to
        the Joint Venturers. Distributions will be made on a quarterly cash received
        basis and the Joint Venturers may elect to receive the distribution or
        to reinvest the distribution in the Joint Venture and the Joint Venture
        percentages will be amded to reflect any such reinvestments.

	 	 
	15.	It is contemplated that additional Joint
        Venturers may be admitted to the Joint Venture from time to time to a
        maximum fund of $5,000,000.00. Therefore, upon receipt by Icoworks Joint
        Ventures Inc. of an investment in the Joint Venture from a proposed Joint
        Venturer deemed acceptable to Icoworks Services Ltd. and completion and
        execution of a copy of this agreement and such other instruments as Icoworks
        may request, the proposed Joint Venturer shall automatically be deemed
        to have been admitted to the Joint Venture as a Joint Venturer. However,
        a Joint Venturer who becomes a party to the Joint Venture at a time when
        the Joint Venture is between a purchase and sale and the funds contributed
        are not used in that particular transaction, shall not participate in
        the profits of that transaction.

	 	 
	16.	No Joint Venturer shall sell, transfer,
        assign, pledge, hypothecate, mortgage, or in any other manner encumber
        its interest in the Joint Venture without the written consent of the other.

	 	 
	17.	The head office of the Joint Venture shall be at 2020 Pegasus
      Rd. N.E., Calgary, Alberta T2E 8K7.
	 	 
	18.	The bank of the Joint Venture shall
        be the Royal Bank of Canada. All cheques, bills, notes, drafts or other
        instruments made or accepted by the Joint Venture, and all contracts of
        any nature by the Joint Venture shall be signed by a representative of
        the Joint Venturers and Icoworks. Proper books of accounts shall be kept
        by the Joint Venture and each Joint Venturer shall have access thereto
        at all reasonable times. The auditors of the Joint Venture shall be the
        auditors of Icoworks and its accounting period shall be on a calendar
        basis.

	 	 
	19.	Each of the parties hereto shall from
        time to time, at the request of any other party, execute and deliver such
        further documents, conveyances and assurances as may be reasonably be
        required to carry out in full the terms and intent of this Agreement.

	 	 
	20.
   	The Joint Venturers shall have the option
        to convert their investment in Icoworks Joint Ventures Inc. to common
        shares of Icoworks, Inc. at any time within one year of their investment.
        The conversion price shall be calculated on the average closing price
        of Icoworks, Inc. stock for five days immediately prior to the date of
        the investment. Icoworks, Inc. shall

 

	
	advise the Joint Venturers of the optional conversion price
      at the time of their investment.
	 	 
	21. 	The Joint Venturers shall have the Right
        of First Refusal, on 14 days notice, to participate in future joint venture
        funds with Icoworks and Icoworks Joint Ventures Inc., the terms of which
        may or may not be similar to the terms of this agreement.

	 	 
	22.	Each provision of this agreement is
        intended to be severable and if any provision is found to be illegal,
        invalid or unenforceable, the finding shall not affect the validity of
        the other provisions.

	 	 
	23.	The rights and remedies provided by
        this agreement are cumulative, are given in addition to any other rights
        and remedies available by law, statute, ordinance, in equity or otherwise
        and the use of any one right or remedy shall not preclude the use of others.

	 	 
	24.
   	Any notice required or permitted under
        this agreement shall be in writing. Unless a particular provision of this
        agreement requires delivery in a specified manner, any notice shall be
        given by prepaid mail, or delivered personally or by facsimile transmission
        to the following:

       ICOWORKS, INC.

       and

       ICOWORKS SERVICES LTD.

       and 

      ICOWORKS EASTERN LTD. 

      and 

      ICOWORKS SERVICES LTD.

       c/o 2020 Pegasus Rd. N.E. 

        Calgary, Alberta T2E 8K7 

        Fax#: (403) 291-0939

       Name: [NAME OF JOINT VENTURER] 

      Address: [ADDRESS OF JOINT VENTURER] 

      Fax Number: [FAX NUMBER OF JOINT VENTURER]

 

	
	Name: [NAME OF JOINT VENTURER] 

      Address: [ADDRESS OF JOINT VENTURER] 

      Fax Number: [FAX NUMBER OF JOINT VENTURER]

       

      Name: [NAME OF JOINT VENTURER] 

      Address: [ADDRESS OF JOINT VENTURER] 

      Fax Number: [FAX NUMBER OF JOINT VENTURER]

	 	 
	25.	Where given by prepaid mail, any notice
        shall be deemed to have been given on the third postal delivery day next
        following mailing. During any period of disruption of postal service,
        notices shall be delivered personally or by facsimile transmission.

	 	 
	26.	This agreement shall be governed by
        the laws of the Province of Alberta and shall enure to the benefit of
        and be binding on the parties to it and their respective successors and
        permitted assigns.

IN WITNESS WHEREOF the parties have executed this agreement the day, month and year first written above.

 SIGNED, SEALED AND DELIVERED in the presence of:

	 	ICOWORKS, INC. 

       Per:  

       ICOWORKS, INC. 

       Per:  

       ICOWORKS SERVICES LTD. 

       Per:  

       ICOWORKS EASTERN INC. 

	 	Per: 

       ICOWORKS JOINT VENTURES INC. 

       Per:  

       _______________________________

        [NAME OF JOINT VENTURER] 

       _______________________________

        [NAME OF JOINT VENTURER] 

       _______________________________

        [NAME OF JOINT VENTURER] 

       _______________________________

        [NAME OF JOINT VENTURER] 

       _______________________________

        [NAME OF JOINT VENTURER]

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