EXHIBIT 10.20

# PETER HILL RANKIN 
BLUE CITRUS VENTURES INC. 
3378 Panorama Ridge
Whistler, British Columbia 
V0N 1B3

September 27, 2004

WITHOUT PREJUDICE

MDSI Mobile Data Solutions Inc.
10271 Shellbridge Way,
Richmond, British Columbia V6X 2W8

# Attention: Mr. Erik
Dysthe, President

Dear Sirs/Mesdames:

# RE: Termination of
Employment Agreement

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I write in respect of the employment
agreement between myself and MDSI Mobile Data Solutions Inc. (the Company)
dated the 1st day of August, 2003 (the Agreement). Notwithstanding
the terms and conditions of the Agreement, I propose the Agreement be terminated on the
terms and conditions contained herein, with only those provisions surviving as set forth
in this letter. Capitalized terms not otherwise defined in this letter shall have the same
meaning as contained in the Agreement, unless the context requires otherwise:

|1. |  | The
effective date of the termination of the Agreement shall be September 29,           2004
(the Effective Date). The specific provisions of the Agreement           that
survive and are binding upon the parties to this letter have been specified           in
this letter.
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|2. |  | The
Company hereby agrees to engage Blue Citrus Ventures Inc. (Blue           Citrus)
for general consulting services as may be required by the Company           on the
following terms and conditions:
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| | (a) |  | in
consideration of Blue Citrus making itself available to provide services,
               the Company shall pay to Blue Citrus a retainer fee in the amount
of                CAD110,000, plus CAD7,700 in goods and services tax (the
               Retainer), on January 1, 2005 (the Payment Date)
or such                other date as may be mutually agreed to by the
Executive,Blue Citrus and                the Company;
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | the
Company will engage Blue Citrus for not less than 100 days of services
               during the period from the Effective Date until the second anniversary of
the                Effective Date to perform services as requested by the President;
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) |  | in
addition to the Retainer, the Company shall pay to Blue Citrusfor
               such consulting services is a minimum charge of CAD1,200.00
per                day, plus expenses, plus applicable goods and services tax; and
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) |  | if
upon the second anniversary of the Effective Date, the Company has engaged
               Blue Citrus for less than 100 days of services, provided that Blue Citrus
has                made reasonable efforts to make the Executive available to provide
services to                the Company, the Company shall forthwith, following the second
anniversary of                Effective Date, pay to Blue Citrus the product of
CAD1,200.00 and the difference                of 100 less the number of days that
services were provided, plus applicable                goods and services tax.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|3. |  | The
Company shall pay to the Executive forthwith all amounts due to the           Executive
on account of accrued vacation pay and any Incentive that has been           earned by
the Executive up to and including the Effective Date.
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|4. |  | The
Executive shall have a period of two (2) years from the Effective Date in           which
to exercise vested share purchase options in the Company, failing which           such
options shall automatically terminate.
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|5. |  | Unless
there is a Change of Control announced by press release as specified in           Section
6 of this letter, notwithstanding any provision in the Agreement or this           letter
to the contrary, the non-competition provisions of the Agreement,           referred to
in section 11 of the Agreement, shall be incorporated into this           letter by
reference, and shall be effective against the Executive and Blue           Citrus for a
period of commencing on the Effective Date and ending on the sooner           of:
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | Blue
Citrus completing 100 days of services pursuant to its engagement set forth
               in paragraph 2; or
| | --- |  | ------------------------------------------------------------------------------------------------------------------

| | (b) |  | the
second anniversary of the Effective Date
| | --- |  | --------------------------------------------

| | after
which the Executive shall be free to accept employment with any person or party at the
sole and absolute discretion of the Executive or after which Blue Citrus may compete with
the Company, directly or indirectly. In any case, the Executive and Blue Citrus shall be
bound by the confidentiality provisions contained in section 9 of the Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | In
the event that there is a Change of Control announced by press release within
          twelve (12) months of the Effective Date, the Executive shall be entitled to
the           severance payable to the Executive in the amount of CAN220,000 upon the
          completion of the Change of Control. Notwithstanding anything in the Agreement
          or this letter to the contrary, in the event of a completion of a Change of
          Control, the Executive and Blue Citrus shall release and waive any and all
          rights against the Company, for any remaining days of service under paragraph
          2(b) of this letter. In the event of a completion of a Change of Control, the
          Executive and Blue Citrus shall observe and be bound by the non-competition
          provisions of the Agreement, referred to in section 11 of the Agreement, for a
          period of 1 year from the date of the completion of the Change of Control.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Upon performance of the foregoing,
the parties shall have no further obligations to one another, other than the
confidentiality provisions contained in section 9 of the Agreement, which shall continue
to be binding on the Executive and Blue Citrus.

The Company acknowledges and agrees
with the Executive and Blue Citrus that there is no admission of liability on the part of
the Company, and that there has not been any resignation of employment by the Executive,
but that the parties have agreed to mutually terminate the Agreement on the foregoing
terms and conditions.

Please acknowledge your agreement to
the above terms and conditions by signing and returning the enclosed copy of this letter
to me at the address first noted above.

Yours truly,/s/ Peter Hill RankinPETER HILL RANKIN

# BLUE CITRUS VENTURES INC.

Per:   /s/ 
Peter Hill Rankin
Peter Hill Rankin

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ACKNOWLEDGED AND AGREED
THIS 28th DAY OF SEPTEMBER, 2004

# MDSI MOBILE DATA
SOLUTIONS INC.

Per:   
/s/ Glenn Kumoi
Authorized Signatory

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