Document:

Exhibit 10.2

 

Second AMENDMENT TO OFFICE
LEASE

 

THIS
SECOND AMENDMENT TO OFFICE LEASE (this “Amendment”) is entered into between CRESCENT 1301 MCKINNEY, L.P.,
a Delaware limited partnership (“Landlord”), and KEY ENERGY SERVICES, INC., a Maryland
corporation (“Tenant”),
with reference to the following:

 

A.                                   Landlord and Tenant entered into that certain
Office Lease dated effective as of January 20, 2005, and that certain First
Amendment to Office Lease (the “First Amendment”) dated March 15, 2005 (as amended, the
“Lease”),
covering approximately 38,909 square feet of Rentable Square Footage on floors
17 and 18 (the “Premises”)
of the building located at 1301 McKinney, Houston, Texas (the “Building”).

 

B.                                     Landlord and Tenant now desire to further
amend the Lease as set forth below. 
Unless otherwise expressly provided in this Amendment, capitalized terms
used in this Amendment shall have the same meanings as in the Lease.

 

FOR
GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are
acknowledged, the parties agree as follows:

 

1.                                      Second Expansion Space. 
Landlord leases to Tenant and Tenant leases from Landlord approximately
10,885 square feet of additional Rentable Square Footage (the “Second Expansion Space”)
located on floor 17 of the Building as shown on the attached Exhibit “A”, which is incorporated into
this Amendment for all purposes.  The
term “Premises”
as used in the Lease means and includes approximately 49,794 square feet of
Rentable Square Footage, being the sum of the Rentable Square Footage of the
current Premises (38,909 square feet of Rentable Square Footage) and the Second
Expansion Space.  The lease of the Second
Expansion Space is subject to all of the terms and conditions of the Lease currently
in effect, except as modified in this Amendment.

 

2.                                      Base Rent. 
Commencing on December 15, 2005, and continuing through the Term, Tenant
shall, at the time and place and in the manner provided in the Lease, pay to
Landlord as Base Rent for the Second Expansion Space the amounts set forth in
the following rent schedule, plus any applicable tax thereon:

 

SECOND EXPANSION SPACE

 

	
  FROM

  	
   

  	
  THROUGH

  	
   

  	
  ANNUAL
  BASE

  RENT RATE PER

  SQUARE FOOT

  	
   

  	
  MONTHLY

  BASE RENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  December 15, 2005

  	
   

  	
  June
  14, 2011

  	
   

  	
  $

  	
  11.50

  	
   

  	
  $

  	
  10,431.46

  	
  * 

  
	
  June 15, 2011

  	
   

  	
  June
  14, 2016

  	
   

  	
  $

  	
  12.50

  	
   

  	
  $

  	
  11,338.54

  	
   

  

 

*  Provided that
Tenant is not in monetary default under the Lease beyond any applicable notice
and/or cure period, the monthly Base Rent and Operating Expenses for each of
the initial 6 months of the Term shall be abated (the “Rent Abatement Period”).

 

3.                                      Operating Expenses. 
Commencing on December 15, 2005, Tenant’s Pro Rata Share of Operating
Expenses payable under Article 4
of the Lease shall be increased to take the Second Expansion Space into
consideration.  Further, provided
that Tenant is not in monetary default under

 

 

the Lease beyond any applicable notice and/or cure
period, the monthly OE Payment shall be abated for the Rent Abatement Period (defined in Paragraph 2 above).

 

4.                                      Condition of Second
Expansion Space.  The Second Expansion Space is accepted by
Tenant in “as is” condition and configuration subject to (a) all applicable
provisions of the “Work Letter” between Landlord and Tenant attached to this
Amendment as Exhibit “B”,
and (b) Landlord’s repair obligations under Section
10.B. of the Lease, and (c) any latent defects in the Second
Expansion Space of which Tenant notifies Landlord within 1 year after the
Commencement Date.  TENANT HEREBY AGREES THAT THE SECOND EXPANSION SPACE IS IN GOOD ORDER AND SATISFACTORY CONDITION AND THAT,
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AMENDMENT OR IN THE LEASE,
THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, BY
LANDLORD REGARDING THE SECOND
EXPANSION SPACE, THE PREMISES,
THE BUILDING OR THE PROPERTY.

 

5.                                      Early Access to the
Second Expansion Space.  Following the Effective Date
of this Amendment, Tenant’s contractors may, upon advance written notice to
Landlord, enter the Second Expansion Space for the purpose of performing work
in preparation for Tenant’s move-in (including, without limitation,
installation of furniture, fixtures and equipment) provided that (i) such work
by Tenant’s contractors during the prosecution of “Landlord’s Initial Work” and
the “Landlord Work” (as such terms are defined in the Work Letter attached as Exhibit “B”) is conducted in a manner
as to not unreasonably interfere with Landlord’s Initial Work and the Landlord
Work occurring in or around the Second Expansion Space, and (ii) prior to any
such entry, Tenant’s contractors shall provide Landlord with certificates of
insurance or other evidence of insurance reasonably acceptable to
Landlord.  Commencing on the date of
Substantial Completion (defined in the Work Letter) of the Landlord Work in the
Second Expansion Space, and continuing through the Commencement Date, Tenant
shall be permitted access to the Second Expansion Space for the purpose of
installing furniture, equipment or other personal property in the Second
Expansion Space, and conducting Tenant’s business activities in the Second
Expansion Space once the Second Expansion Space and the balance of the Premises
are suitable for lawful occupancy.  All
early access to the Second Expansion Space shall be subject to the terms and
conditions of the Lease and this Amendment except that Tenant shall pay no Rent
(defined in Section 4.A of the
Lease) for such early access even if Tenant has occupied the Second Expansion
Space for the purpose of conducting business.

 

6.                                      Option to Expand. 
By leasing the Second Expansion Space, Tenant has leased the Expansion
Space set forth in Rider No. 2 to
the Lease.  Accordingly, Rider No. 2 to the Lease is deleted in its
entirety.

 

7.                                      Additional Parking
Permits.  In connection with the Second Expansion
Space, Paragraph 1 of Exhibit E to the Lease shall be amended
as follows:

 

(a)                                  to add three (3) additional unreserved
parking permits allowing access to unreserved spaces in the Building Garage;
and

 

(b)                                 to add seven (7) additional unreserved
parking permits allowing access to unreserved spaces in, at Landlord’s option,
Houston Center Garage 1, 4 Houston Center Garage, and/or First City Tower
Garage.

 

2

 

The
additional parking permits described in Subparagraphs
(a) and (b) above are hereinafter
called the “Second
Expansion Space Parking Permits”.  Tenant shall pay Landlord’s quoted monthly
contract rate (as set from time to time) for the Second Expansion Space Parking
Permits, plus any taxes thereon.  The
current monthly contract rates for the Second Expansion Space Parking Permits
are $160.00 per permit for unreserved permits in the Building Garage, $170.00
per permit for unreserved permits in the 4 Houston Center Garage, and $160.00
per permit for unreserved permits in the Houston Center Garage 1 and First City
Tower Garage.  Tenant’s failure to pay
for the Second Expansion Space Parking Permits shall be an event of default
under the Lease, subject to cure provisions for monetary default as specified
in the Lease.  The Second Expansion Space
Parking Permits are subject to all the terms and conditions set forth in the
Lease.  Notwithstanding the foregoing,
provided that Tenant is not in default under the Lease beyond any applicable
notice and/or cure period, then during the Rent Abatement Period (defined in Paragraph 2 above) Tenant’s parking
charges for the Second Expansion Space Parking Permits taken by Tenant shall be
abated 100%, and during the 48 consecutive months of the Term thereafter (the “Parking Charge Discount Period”),
the parking charges for the Second Expansion Space Parking Permits taken by
Tenant shall be discounted by 50% of Landlord’s quoted monthly contract rate
(plus any taxes thereon); further, provided that Tenant is not in default under
the Lease beyond any applicable notice and/or cure period during the 24
consecutive months of the Term following the Parking Charge Discount Period,
the parking charges for the Second Expansion Space Parking Permits taken by
Tenant shall be discounted by 35% of Landlord’s quoted monthly contract rate
(plus any taxes thereon).

 

8.                                      Additional Downtown Club
Memberships.  In connection with the Second Expansion
Space, Section 31.M of the Lease
is amended to add up to twenty (20) additional Memberships to the Club as may
be requested by Tenant pursuant to the terms of Section 31.M.  The
additional Memberships are subject to all the terms and conditions of Section 31.M of the Lease.

 

9.                                      Consent. 
This Amendment is subject to, and conditioned upon, any required consent
or approval being unconditionally granted by Landlord’s mortgagee(s).  If any such consent shall be denied, or
granted subject to an unacceptable condition, this Amendment shall be null and
void and the Lease shall remain unchanged and in full force and effect.  If Landlord does not notify Tenant in writing
within thirty (30) days following the Effective Date of this Amendment, that
this Amendment has not been approved by Landlord’s mortgagee, then this
Amendment shall be deemed approved as between Landlord and Tenant.

 

10.                               Broker. 
Tenant represents and warrants that it has not been represented by any
broker or agent in connection with the execution of this Amendment, except
Partners Commercial Realty, L.P. d/b/a NAI Houston.  Tenant shall indemnify and hold harmless
Landlord and its designated property management, construction and marketing
firms, and their respective partners, members, affiliates and subsidiaries, and
all of their respective officers, directors, shareholders, employees, servants,
partners, members, representatives, insurers and agents from and against all
claims (including costs of defense and investigation) of any other broker or
agent or similar party claiming by, through or under Tenant in connection with
this Amendment.

 

11.                               Time of the Essence. 
Time is of the essence with respect to Tenant’s execution and delivery
to Landlord of this Amendment.  If Tenant
fails to execute and deliver a signed copy of this Amendment to Landlord by
5:00 p.m. (in the city in which the Premises is located) on June 17,

 

3

 

2005, this Amendment shall be deemed null and void and
shall have no force or effect, unless otherwise agreed in writing by
Landlord.  Landlord’s acceptance,
execution and return of this Amendment shall constitute Landlord’s agreement to
waive Tenant’s failure to meet such deadline.

 

12.                               Miscellaneous. 
This Amendment shall become effective only upon full execution and
delivery of this Amendment by Landlord and Tenant.  This Amendment contains the parties’ entire
agreement regarding the subject matter covered by this Amendment, and
supersedes all prior correspondence, negotiations, and agreements, if any,
whether oral or written, between the parties concerning such subject
matter.  There are no contemporaneous
oral agreements, and there are no representations or warranties between the
parties not contained in this Amendment. 
Except as modified by this Amendment, the terms and provisions of the
Lease shall remain in full force and effect, and the Lease, as modified by this
Amendment, shall be binding upon and shall inure to the benefit of the parties
hereto, their successors and permitted assigns.

 

[REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK]

 

4

 

LANDLORD
AND TENANT enter into this Amendment on          24, 2005 (the “Effective Date”).

 

	
   

  	
  Landlord:

  
	
   

  	
   

  
	
   

  	
  CRESCENT 1301 Mckinney, l.p.,

  
	
   

  	
  a
  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Crescent
  1301 GP, LLC

  
	
   

  	
   

  	
  a
  Delaware limited liability company,

  
	
   

  	
   

  	
  its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Robert H. Boykin, Jr.

  	
   

  
	
   

  	
   

  	
   

  	
    Robert
  H. Boykin, Jr.

  
	
   

  	
   

  	
   

  	
    Senior
  Vice President

  
	
   

  	
   

  	
   

  	
    Leasing

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tenant:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEY ENERGY SERVICES, INC.,

  
	
   

  	
  a
  Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kim B. Clarke

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kim
  B. Clarke

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Chief People Officer

  	
   

  
								

 

5<PAGE>

                                                                    EXHIBIT 10.1

                                BUSINESS PLAN OF

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                                 BEIJING, CHINA

                                    MAY 2005

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                 BUSINESS PLAN OF CHINA MOBILITY SOLUTIONS INC.
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

                                                                    PAGE

1. CORPORATE SNAPSHOT                                                 1

2.   INTRODUCTION TO QUICKNET, THE NEW SUBSIDIARY                     2

3.   INTRODUCTION TO TELECOM VALUE-ADDED SERVICES (VAS)               3

4. THE MOBILE MARKET IN CHINA                                         4

5.   OUR TARGET MARKET: MOBILE SOLUTIONS FOR BUSINESS                 7

6. OUR FIRST APPLICATION: MOBILE MARKETING                            9

7. OUR NEW MARKET-READY SOLUTIONS                                    12

8. SALES APPROACH                                                    16

9. FUTURE SERVICES                                                   17

10. GROWTH BY ACQUISITIONS                                           19

11. MANAGEMENT AND ORGANIZATION                                      19

12.  OBJECTIVES AND USE OF PROCEEDS                                  22

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                 BUSINESS PLAN OF CHINA MOBILITY SOLUTIONS INC.
                                     PAGE 1
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                              1. CORPORATE SNAPSHOT

STOCK MARKET SYMBOL:                    CHMS

TRADED EXCHANGE:                        OTCBB

RECENT STOCK PRICE:                     $0.45

SHARES ISSUED & OUTSTANDING:            15,826,670

MARKET MAKERS:                          14 ACTIVE

TARGET MARKET:                          CHINA

SECTOR:                                 TELECOM

MAJOR SERVICE:                          MOBILE SOLUTIONS FOR BUSINESSES

CUSTOMER BASE:                          >17,000 ENTERPRISES IN CHINA

HEAD OFFICE:                            CHINA MOBILITY SOLUTIONS INC.
                                        SUITE 900 -789 W. PENDER ST.
                                        VANCOUVER, BC V6C 1H2

CHINESE OPERATIONS:                     BEIJING

CONTACT:                                ANGELA DU, PRESIDENT

TELEPHONE:                              604.632.9638

FAX:                                    604.408.8515

WEB:                                    WWW.CHINAMOBILITYSOLUTIONS.COM

RECENT DEVELOPMENTS: China Mobility Solutions acquired a 51% interest in
QuickNet Telecommunication Corp., a fast-growing provider of mobile business
solutions to enterprises in China in 2004, and has an option to acquire the
remaining 49%. In just over one and half year, this subsidiary has built a
client base of more than 17,000 businesses and has generated sales of USD $4
million in 2004.

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                  2. OVERVIEW OF CHINA MOBILITY SOLUTIONS INC.

         China Mobility Solutions Inc. announced in June 2004 that it had closed
         an acquisition agreement with the shareholders of QuickNet
         Telecommunication Corp. ("QuickNet"), a mobile enterprise services
         provider based in Beijing, China.

         Under the terms of the acquisition, China Mobility Solutions Inc. has
         issued 2,040,000 shares at a deemed price of US$1.50 per share to the
         shareholders of QuickNet, in exchange for 51% of the issued and
         outstanding shares of QuickNet. China Mobility Solutions also retains
         an option to acquire the remaining 49% of the QuickNet shares for US$4
         million in cash and/or shares within the first year after the closing
         date of the acquisition, or for US$5 million in cash and/or shares
         within the second year after the closing date of the acquisition.

         QuickNet is one of the first companies to focus on mobile solutions for
         businesses in China. QuickNet's strategy of targeting corporate users
         is aimed at achieving a higher percentage of recurring revenue and
         better margins.

         The management of QuickNet consists of entrepreneurs with proven
         technical and management skills who have been involved in developing
         the national standards of billing and access systems for telecom
         service providers in China servicing China Unicom and China Mobile.

         QuickNet is one of a limited number of telecom VAS (value-added
         services) companies in China to obtain licenses for national SMS access
         numbers from mobile carriers China Unicom (9111) and China Mobile
         (1111), enabling it to offer its VAS services nationwide.

         The Company has developed a highly advanced mobile technology platform,
         with advanced database management, customer relationship management
         (CRM) and message auditing functionality.

         QuickNet launched its mobile enterprise services in July 2003 and
         quickly became cash flow positive by the end of 2003. The Company
         generated about USD$4 million of sales in 2004.

         China Mobility Solutions developed a database of over 500,000 corporate
         clients while operating its previous Chinese Internet technology
         business. With the acquisition of QuickNet, the Company will now be
         able to offer new mobile enterprise services to these clients.

         China Mobility Solutions is currently seeking up to US$12 million of
         funding to be used for the following: promoting its mobile solutions to
         businesses nationwide; establishing sales support offices in key urban
         centers in China; developing new solutions that are being demanded by
         enterprises; and acquiring other mobile companies that will deliver
         synergistic benefits.

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             3. INTRODUCTION TO TELECOM VALUE-ADDED SERVICES (VAS)

         DEFINITION OF SMS

         The Short Message Service (SMS) is the ability to send and receive text
         messages to and from mobile telephones on digital GSM and CDMA
         networks. The text can comprise of words or numbers or an alphanumeric
         combination.

         Ring tones, pictures and logos can also be sent. Each short message is
         up to 160 characters in length when Latin alphabets are used and 70
         characters in length when non-Latin alphabets such as Arabic and
         Chinese are used.

         If the receiver's phone is powered off or out of range, messages are
         stored in the network and are delivered at the next opportunity.

         BENEFITS OF SMS

         SMS is fast, as the receiver is able to read the message seconds after
         it is being sent.

         SMS is inexpensive, as the cost to the sender is typically very low
         (i.e., under US$0.05 per message) and the receiver does not pay for
         basic SMS services.

         SMS is convenient, as it is sent to cell phones, which are owned by a
         larger percentage of the population than PCs and are more readily
         accessible than PCs, especially in China and the developing world.

         SMS facilitates the sharing of different types of information. One of
         the most popular applications is the sharing of personal messages
         between friends. Also frequently sent are news, share prices, sports
         scores, weather, flight information, games, and test results.

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                          4. THE MOBILE MARKET IN CHINA

         The Chinese economy has been among the fastest growing in the world for
         the past several years. China's economy withstood the effect of SARS
         and grew 9.1% in 2003. Growth matches that level in 2004 as well:

                                   [BAR CHART]

                               China GDP Growth %

                  2000      2001      2002      2003      2004
                  ----      ----      ----      ----      ----

                  8.1       7.3       8         9.1       9

         Not surprisingly then, China has one of the largest and fastest-growing
         telecom markets in the world, with the mobile phone sector in
         particular having become the world's biggest.

TELECOMMUNICATION INDUSTRY STATISTICS
AS AT YEAR END 2003

--------------------------------------------------------------------------------
BENCHMARK                                                 MEASURE
--------------------------------------------------------------------------------
Telecom Revenue                                           US$59 billion
--------------------------------------------------------------------------------
Completed Investments in Telecom Infrastructure           US$27 billion
--------------------------------------------------------------------------------
Fixed Line Telephone Subscribers                          263 million
--------------------------------------------------------------------------------
Mobile Phone Subscribers                                  269 million
--------------------------------------------------------------------------------
Average New Mobile Phone Subscribers Per Month            5 million
--------------------------------------------------------------------------------
GSM Subscribers                                           252 million
--------------------------------------------------------------------------------
CDMA Subscribers                                          17 million
--------------------------------------------------------------------------------
Internet Subscribers                                      78 million
--------------------------------------------------------------------------------
Fixed Line Telephone Penetration Rate                     20.3%
--------------------------------------------------------------------------------
Mobile Phone Penetration Rate                             20.9%
--------------------------------------------------------------------------------
Total SMS Sent in 2003                                    220 billion
--------------------------------------------------------------------------------

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         There are more than 300 million cellular phone customers in China
         according to the Ministry of Information Industry. This represents 23
         cell phones for every 100 people in China. As many as nine million new
         users have registered in a single month.

         Three important milestones were reached in China in 2003, as emphasized
         by Finnish research firm NETS:

    1.   Mobile subscribers surpassed that of fixed line for the first time in
         October 2003, reaching 256.9 million.

    2.   The mobile penetration rate passed 20% nationwide and reached 60% in
         affluent cities of Beijing, Shanghai and Shenzhen.

    3.   Mobile service has increasingly replaced fixed service in volume and
         percentage, now comprising more than half (52%) of the total telecom
         revenue.

         With the penetration rate just above 20% however, there is still
         considerable room for growth in the Chinese mobile market. Pacific
         Growth Equities of San Francisco foresees 500 million mobile phone
         users in China by 2007.

                                  [LINE CHART]

                             Mobile Phones in China

                            Millions of Subscribers

                  2002      2003      2004      2005      2006     2007
                  ----      ----      ----      ----      ----     ----

                  206       248       290       325       341      500

         Short Messaging Service is a phenomenon in Asia. According to state
         released figures, Chinese SMS usage accounts for 1/3rd of the world's
         traffic. MII figures show that China's 260 million mobile phone users
         sent a total of 220 billion SMS messages in 2003 to drive this booming
         "thumb economy."

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                                  [BAR GRAPH]

                             SMS Messages In China

                               Billions Per Year

                           2001      2002      2003
                           ----      ----      ----

                           19        90        239

         Growth has continued into 2004, as Chinese sent just under 15.7 billion
         short messages through their mobile phones during January, a rise of
         91% over the same period last year. Chinese mobile phone users were
         estimated to have sent 10 billion SMS greetings during the seven-day
         Lunar New Year holiday alone, Xinhua news agency said. That is equal to
         7.7 messages for each of the country's 1.3 billion people.

         Total SMS revenues in China grew by 75% in 2003 to US$248 million. SMS
         revenue growth in China is projected by Pacific Growth Equities of San
         Francisco to be 60% in 2004.

                                  [BAR GRAPH]

                              SMS Revenue in China

                                  US$ Millions

                  2001      2002      2003      2004      2005     2006
                  ----      ----      ----      ----      ----     ----

                  750       1,300     2,400     4,500     8,500    17,000

         As an example, China Mobile Ltd's (China Mobile Communications Corp's
         listed arm in Hong Kong) revenue from its SMS business in 2003 surged
         134% from the previous year.

         SMS has become a revenue generator for Internet Service Providers and
         Internet Content Providers, who received a total of US$333 million from
         SMS in 2003. That figure, according to the Xinhua News Agency, is
         expected to reach US$533 million in 2004.

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                   5. CHINA MOBILITY SOLUTIONS' TARGET MARKET
                         MOBILE SOLUTIONS FOR BUSINESS

         Management's view is that being an "early bird" provider of mobile
         services to enterprises offers more growth potential than if China
         Mobility Solutions targeted the highly competitive consumer mobile
         market.

         Management's view is that existing VAS providers have not yet
         concentrated on the business user market because of the following
         reasons: a) They lack operational experience at generating revenue from
         enterprises; b) They do not possess the required technology; c) They
         lack the ability to easily access business customer information (China
         Mobility Solutions has a proprietary database of 500,000 enterprises)

         In China, as in Europe, much of the focus has been on SMS for
         individual or consumer use. It was natural that companies such as Sohu
         and Sina that started out as Internet portals would eventually offer
         SMS only to its mass-market base. Increasingly, however, providing
         mobile solutions for businesses is seen as a potentially more lucrative
         and less saturated market. One only has to look to Western Europe a
         leading indicator of what will soon be happening in China's mobile
         market.

         The mobile business market is set to increase to more than 80 million
         workers in Western Europe, penetrating close to 50% of the workforce by
         2007. The research, conducted in February of 2003 by the independent
         analysts IDC, reveals the thriving acceptance of mobile solutions
         across Europe by businesses as they seek to boost productivity and
         profitability, while improving customer service.

         IDC's research, `Mobility in a Business Environment' asserts that the
         timing is ideal for businesses to decide upon mobile strategies and
         quickly benefit from the advantages it brings, with Return on
         Investment now clearly measurable from as little as three months after
         deployment. In addition, mobile operators are singled-out as the
         linchpin to a company's value chain and instrumental to the successful
         adoption of mobile solutions.

         Among the key findings of the research were the following:

         o     Mobile workers in Western Europe will increase from 70 to 80
               million users (50 per cent of workforce) by 2007, with mobile
               tasks becoming more mission-critical in nature

         o     Small and medium-sized companies using mobile data solutions in
               Western Europe will increase from 2% to 20% by 2007.

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         o     The prerequisites for true mobile working are now in place with
               the necessary networks, devices, security levels and
               partnerships. Businesses should therefore consider mobile
               initiatives immediately in order to reap benefits.

         Lars Vesterguard, Research Manager, European Wireless & Mobile
         Communications, for IDC, said: "We believe that the time for
         implementing mobile solutions has never looked better, as all the
         prerequisites for mobile working now exist. Depending on the
         circumstances and needs, varying mobile solution offerings will deliver
         a range of tangible benefits from saved time to increased productivity
         and revenue, as well as the less tangible benefits such as positive
         customer perceptions and increased job satisfaction."

         Pyramid Research of Cambridge, Massachusetts has found that focus among
         operators in countries where SMS is already prevalent is evolving from
         the consumer segment to the business segment. Reasons for this shift
         include:

         o     A maturing consumer market

         o     Wireless data growth, as "businesses are now waking up to the
               cost savings associated with mobile data such as increased
               employee productivity, improved customer response times and
               improved business processes as a result of speedier information
               access.

         o     Enterprise customers deliver higher Average Revenue Per
               Subscriber ("ARPS") and more stable churn than individual users.

         o     Enterprise users are, on balance, earlier adopters and larger
               spenders on new technology.

         Pyramid argues that mobile operators should capitalize on the
         opportunities in the Small and Medium Enterprises ("SME") market by
         aggregating the best-of-breed expertise of third party solution
         providers.

         China Mobility Solutions has established relationships with China
         Unicom and China's other mobile operators and is perfectly positioned
         to take advantage of the increasing need and demand for mobile business
         solutions.

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                6. CHINA MOBILITY SOLUTIONS' FIRST APPLICATION:
                                MOBILE MARKETING

         Mobile marketing is the use of the mobile medium as a communications
         and entertainment channel between a brand and an end-user. Mobile
         marketing is the only personal channel enabling spontaneous, direct,
         interactive and/or targeted communications, any time, any place. Mobile
         marketing can be used in a wide variety of ways:

         o     For customer acquisition

         o     For customer retention

         o     For loyalty building

         o     As a sales promotion tool

         o     To support product launches

         o     To raise brand awareness

         o     For internal communications

         o     As a redemption / coupon tool

         o     For direct marketing

         o     As an effective business to business communications vehicle o As
               an additional revenue stream

         o     To be able to offer time / location specific offers

         o     As a channel for delivering ring tones and logos

         Mobile marketing is growing in popularity. In Asia, eMarketer reports
         that 39% of mobile phone users have received SMS messages from
         advertisers, 36% in Europe and only 8% in the U.S. These figures point
         to a strong and growing trend among advertisers to embrace mobile
         marketing in different parts of the world and for consumers to be
         fairly receptive to it.

         Jonathan Linner of Enpocket, writing in iMediaConnection in April 2004,
         describes why SMS advertising - China Mobility Solution's existing
         application that it has offered to businesses since the summer of 2003
         - is so attractive to companies:

         "The mobile phone is the first truly personal medium -- always held,
         always on -- and it opens up many new opportunities for marketers. Done
         correctly and responsibly, mobile marketing can drive a high level of
         response and consumer action while building brand recognition, loyalty
         and sales in a cost-effective manner."

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         "The cost-per-contact in mobile marketing is a fraction of comparable
         costs in traditional marketing channels, such as direct mail and call
         centers. For example, the cost per contact for direct mail begins at $1
         and can run into the tens of dollars, while SMS carries a cost per
         contact of only 15 cents (even less in China)."

         "In traditional marketing channels, such as television, there is a huge
         allowance for wastage, as only a small percentage actually responds to
         the advertisement. On the other hand, the combination of mobile
         marketing's predictive models and dynamic profiling ensure that a
         company interacts only with the 10 percent of its customers actually
         interested in its products. The cost savings associated with
         radically-lower wastage in mobile marketing are remarkable."

         "In addition to reducing wastage, the increased relevance of mobile
         marketing solutions increases response rates. Average response rates
         for campaigns reach beyond 15% -- compared to less than 1% for
         traditional direct marketing campaigns."

         "Finally, the average cost of buying and sending a targeted SMS message
         is less than the cost of a stamp, and there are no production costs.
         So, there is great opportunity for delivering ROI that is superior to
         direct mail -- which incurs costs for list rental, postage, envelopes
         and printed letters or other enclosures."

         A study by Jupiter Research confirmed the effectiveness of SMS
         advertising. SMS has shown to be more than twice as effective as direct
         mail. An average SMS campaign generates a 15% response rate, compared
         with less than half that amount for direct mail. The survey also found
         that 94% of all advertising text messages are read. Furthermore, 23%
         are forwarded or shown to other users. As a result an average of 8%
         reply to the text message and 6% visit a Web site mentioned in the
         text.

         Some consumers will tolerate ads and some will not. The issue of spam
         is one that is being addressed in the U.K. and the U.S. by the Mobile
         Marketing Association and by the MII in China. "All disturbing SMS
         should be eradicated to help standardize the market and ensure the
         healthy development of the industry," said Chen Jinqiao, director of
         the Chinese Academy of Telecommunications Research under the Ministry
         of Information Industry (MII).

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         By keeping messages small, by providing a benefit to the receiver, and
         by sending to companies that are already in China Mobility Solution's
         database, the Company is avoiding the perception that the messages it
         sends for its clients are "spam". Recent research conducted by the
         Wireless Internet Panel in Europe indicates that consumers' first
         reaction is to reject SMS advertising. However 64% of the same
         respondents changed their attitude if the SMS advertisements offered
         the candidate some benefit (e.g., provides information, inform
         receivers of promotions). The best way for marketers to distance
         themselves from spam, according to the Mobile Marketing Association, is
         to give consumers choice, control, constraint and confidentiality while
         insuring that they only receive relevant information.

         The Management of China Mobility Solutions is drawing upon successful
         examples of SMS advertising in other countries to make its offerings in
         China more valuable to its clients and well received by mobile phone
         users.

         Some examples of positive SMS campaigns include:

         o     Pepsi ran a "SMS Live Concert Promotion" competition in
               Australia, which was conducted on Channel 10's Pepsi Live program
               on Saturday evening and Sunday morning. Viewers had to send an
               SMS with their name and a unique keyword to enter a draw to win
               tickets to the Melbourne or Sydney Rumba festival. The
               competition was only promoted for 50 seconds during each program,
               but 6,500 entries were received.

         o     The Gossard women's clothing company used SMS to raise awareness
               of a new line of apparel. Mobile phone users were asked to type
               in a code to receive a (pound)1 coupon. 20,000 coupons were
               requested in the first two weeks, plus there was significant data
               collection of names and addresses for further information.

         o     Chrysler used SMS advertising to generate leads for test drive
               bookings, by sending an SMS to over 21's living within 25km of
               one of the 32 Smart dealerships across the UK. The first 800
               messages sent led to the sale of three Smart cars. The first
               20,000 messages resulted in 1,500 test drives. Chrysler
               considered this to be an extremely successful and cost effective
               campaign.

         o     In London, successful trials were held of a location based
               taxi-hailing service using GPS and mobile triangulation
               technologies. The solution included voice taxi hailing plus SMS
               customer recruitment, driver and customer CRM.

         Since launching its mobile marketing services last July, the Company
         has served over 17,000 customers and had collected about US$4 million
         in sales from customers in 2004.

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                        7. CHINA MOBILITY SOLUTIONS' NEW
                             MARKET-READY SOLUTIONS

         China Mobility Solutions is working in cooperation with China's major
         mobile carriers, China Unicom and China Mobile, to provide mobile
         solutions for corporate customers.

         Chinese companies in many different industries have a need for mobility
         services. Only telecom VAS providers have access to mobile carriers
         networks, so most of the 30 million enterprises in China could not be
         able to access mobile carriers networks, thus creating a demand for a
         "hub" that China Mobility Solutions has already built for Chinese
         companies. Rather than creating their own platforms to access the
         carriers' networks (and thus the country's cellular population), the
         companies will be able to access China Mobility Solutions' platform for
         a fee. China Mobility Solutions will act as the link between the
         companies and the carriers.

         The Company's platform has been developed using the C programming
         language to facilitate high speed, create a more stable system, secure
         intellectual rights protection, and provide complicated functions. The
         platform can be connected to using WAP or GPRS on digital GSM and CDMA
         networks. The platform is compatible with the carriers' networks, as it
         supports all bands - GSM, CDMA, GPRS and future 3G.

         The following diagram illustrates the architecture of our platform:

                 CHINA MOBILITY SOLUTIONS' PLATFORM ARCHITECTURE

                        ----------------------------------

                                  SMES' Servers

                        ----------------------------------
                                        |
                                        |
                                       \|/
                        ----------------------------------

                        China Mobility Solutions' Platform

                        ----------------------------------
                                |             /|\
                                |              |
                               \|/             |
                        ----------------------------------

                                Mobile Carriers
                                 WAP, GPRS, SMS

                        ----------------------------------
                                |             /|\
                                |              |
                               \|/             |
                        ----------------------------------

                                    End Users
                                 WAP, GPRS, SMS

                        ----------------------------------

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         China Mobility Solutions' platform is aimed at providing a solution for
         clients to access their staff, customers, suppliers and partners to
         obtain information from their mobile phones without having to develop
         the technology themselves. The end users can load, edit, delete, read
         and share corporate information.

         The Company's technical team has successfully completed the technology
         to offer business solutions in four additional areas as well. These
         are:

o        Office Automation Solutions

o        Mobile Banking

o        Mobile Tax Services

o        SMS-based Services for Police

         China Mobility Solutions will receive annual fees for providing
         corporate clients with access to its technology/hub and for providing a
         certain amount of airtime. The mobile carrier will bill users a traffic
         fee for each SMS sent over its network.

         The sending of clients' information will generate significant SMS
         traffic over the mobile phone networks. As a result, China Mobility
         Solutions will become increasingly important to the mobile carriers in
         China.

         Descriptions of each type of service offering are below:

         OFFICE AUTOMATION SOLUTIONS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Status:                                     Market Ready
------------------------------------------------------------------------------------------------------
<S>                                         <C>
Costs to Launch:                            4 million RMB (US$480,000) for fixed assets and marketing
Steps to Launch:                            Raise funds, approach companies through agents
Target Market:                              Small, medium and large businesses
Fee Per Year to Client:                     5,000 RMB (US$600)
Projected # of Clients, Year 1:             2,000
Projected Revenue, Year 1:                  US$1,200,000
Projected Pre-Tax Profit, Year 2:           US$1,800,000
------------------------------------------------------------------------------------------------------
</TABLE>

         Our office automation solutions will benefit clients in the areas of
         CRM, sales force management, communications and inventory. It is the
         next mobile business solution to be rolled out and will be given
         significantly higher emphasis in terms of resources allocated than the
         other three solutions given its higher projected revenues.

         Our technology will facilitate the sending of messages and notices to
         employees and customers.

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         Managers will be able to approve checks and other enquiries that are
         submitted by employees via their cell phones.

         Managers and salespeople will be able to check inventories and arrange
deliveries via SMS.

         Companies will be able to send out service information, accept customer
         enquiries and reply to customer questions via SMS.

         MOBILE BANKING

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Status:                                     Market Ready
-------------------------------------------------------------------------------------------------------
<S>                                         <C>
Costs to Launch:                            1.5 million RMB (US$180,000) for fixed assets and marketing
Steps to Launch:                            Raise funds, approach banks through agents
Target Market:                              Customers of banks
Fee Per Year to Client:                     3,000 RMB (US$360)
Projected # of Clients, Year 1:             1,000
Projected Revenue, Year 1:                  US$360,000
Projected Pre-Tax Profit, Year 2:           US$435,000
-------------------------------------------------------------------------------------------------------
</TABLE>

         Our mobile solutions will allow customers of bank to check their
         account information, make transactions and be informed of new services.

         Information that can be accessible via SMS includes account balances,
         recent transactions, interest rates and exchange rates.

         Customers will be able to transfer funds between their bank accounts,
         make bill payments and report lost or stolen cards.

         Business customers of checks will be able to certify checks through
         their mobile phones.

         SMS-BASED SERVICES FOR POLICE

<TABLE>
-------------------------------------------------------------------------------------------------------
<S>                                         <C>
Status:                                     Market Ready
Costs to Launch:                            1.25 million RMB (U$150,000) for fixed assets and marketing
Steps to Launch:                            Raise funds, approach police departments
Target Market:                              Police Departments
Fee Per Year to Client:                     5,000 RMB (US$600)
Projected # of Clients, Year 1:             500
Projected Revenue, Year 1:                  US$300,000
Projected Pre-Tax Profit, Year 2:           US$360,000
-------------------------------------------------------------------------------------------------------
</TABLE>

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         There are several functions that police stations will be able to
         perform through their cell phones once they implement our solution.

         For example, the departments will be able to provide information on
         fines and fine payments, and deliver traffic information.

         The mobile solution of the Company will also be beneficial for force
         management, specifically through location-based tracking and monitoring
         of officers and police cars.

         The solution provided to the police stations will also include the base
         components of our Office Automation package.

         MOBILE TAX SERVICES

<TABLE>
--------------------------------------------------------------------------------------------------------
<S>                                         <C>
Status:                                     Market Ready
Costs to Launch:                            1.25 million RMB (U$150,000) for fixed assets and marketing
Steps to Launch:                            Raise funds, approach tax offices
Target Market:                              Tax Offices
Fee Per Year to Client:                     2,000 RMB (US$240)
Projected # of Clients, Year 1:             1,000
Projected Revenue, Year 1:                  US$240,000
Projected Pre-Tax Profit, Year 2:           US$290,000
--------------------------------------------------------------------------------------------------------
</TABLE>

         This solution will be similar to our Office Automation package, but
         will be tailored to government tax offices.

         Tax offices will be able to provide and manage messages to staff and to
         tax filers.

         Customer support will be a key function enhanced by our solution, as
         the offices will be able to send out notices about filing deadlines and
         respond to people's enquiries.

         Tax officers will be able to submit and access tax reports by cell
         phone, even when away from their offices.

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                                8. SALES APPROACH

         The Company will use four outlets to approach the market for its
         business solutions:

         AGENTS

         Xin Hai, a previous subsidiary of China Mobility Solutions Inc.,
         received its ISP license in 1997 and by 2003 was generating US$7
         million in annual sales from domain name registration and web hosting,
         making it one of the largest companies in China in that space. Xin Hai
         utilized over 8,000 agents in marketing its services to business users.
         China Mobility Solutions Inc. will employ a similar strategy and will
         draw upon its existing relationships with these agents to quickly build
         up an extensive nationwide sales network for its mobile solutions. This
         approach has already proven to be successful in the SMS market; as to
         date we have primarily made sales for our mobile marketing services via
         advertising agencies.

         MOBILE CARRIERS

         The Company has negotiated a deal with China Unicom to co-market its
         mobile solutions to enterprises. Similar agreements are being discussed
         with the other mobile carriers.

         Because of its extensive connections and influence, leads introduced by
         China Unicom are expected to be especially helpful to the Company when
         approaching the police, banks and tax office segments. It is
         anticipated that we will secure meetings with the regional heads of
         such organizations, after being introduced by China Unicom, and that
         these regional heads would then adopt our solutions throughout its
         organization.

         IN-HOUSE SALES STAFF

         China Mobility Solutions has access to the database of 500,000
         enterprises in China to which our previous subsidiary, Xin Hai, had
         previously provided web-based services. Through direct mail,
         advertising, telephone calling and SMS, the expanding in-house sales
         staff will contact many of these companies. These companies are all
         potential customers of China Mobility Solutions and because we have
         demographic details on these companies, we will be able to use this
         information to provide targeted campaigns for our mobile marketing
         clients. The database also provides us with an opportunity for sales
         leads nationwide, as the 500,000 enterprises are distributed
         geographically as follows:

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                                   [PIE CHART]

Beijing        Guangdong      Shanghai       Jiangsu        Zhejiang       Other
-------        ---------      --------       -------        --------       -----

16%            12%            8%             7%             8%             49%

         SALES SUPPORT OFFICES

         As it did with Xin Hai, management of China Mobility Solutions Inc.
         plans to set up small sales support offices across China, to enhance
         local presence, customer support and responsiveness.

                               9. FUTURE SERVICES

         Management of the Company is aware of the success achieved by companies
         elsewhere in the world in introducing mobile solutions to the market.

         For example:

         China Everbright Bank has teamed with a Chinese ISP to launch a new SMS
         banking service, reported Mobile Commerce World in February of 2004.
         The SMS banking service is targeted at credit loan clients, who receive
         a SMS that shows their bank account balance and reminds them of loan
         repayment.

         In another example of how text messaging is used by business, Japan's
         top mobile carrier NTT DoCoMo will allow its 321,000 shareholders to
         cast their votes at the next shareholders' meeting via the company's
         Internet-capable cellular phones, according to a March 2004 article by
         the AP.

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         Text messaging is now becoming an accepted medium for business
         communications, overtaking older, well-established technologies such as
         pagers. UK companies are starting to rely on SMS more than any other
         medium to communicate mission-critical and real-time information to
         employees, partners and customers, according to a survey conducted by
         Topcall and reported by ZDNet in July of 2003.

         International Aviva Life Insurance has recently launched an SMS-based
         service in India, informing customers about premium payments and the
         policy status on their cell phones. "Updating policyholders about their
         policies as well as informing them about Aviva Life Insurance products,
         is another step towards improving customer services", reported The
         Times of India in July of 2003.

         Even in the U.S., companies increasingly are using SMS to communicate
         vital business information to mobile executives, sales reps, field
         technicians and customers. According to June of 2003 research by
         Topcall, the top 10 business applications of the technology so far are:

         1)    Alerting mobile technicians to system errors

         2)    Alerting mobile execs to urgent voice messages

         3)    Confirming with mobile sales personnel that a faxed order was
               received

         4)    Informing travelers of delays and changes

         5)    Enabling contract workers to receive and accept project offers

         6)    Keeping stock traders up to date on urgent stock activity

         7)    Reminding data services subscribers about daily updates

         8)    Alerting doctors to urgent patient situations

         9)    Letting mobile sales teams input daily sales figures into
               corporate database

         10)   Sending mobile sales reps reminders of appointments and other
               schedule details

         At the Mobile Vodafone Expo in Spain in March 2004, visitors to the
         exhibition were able to view and experience a number of different types
         of mobile business applications, including: security solutions;
         automated location solutions; sales management applications; telemetry
         systems for the remote control of devices and machines; and electronic
         administration systems.

         Management is evaluating these and other solutions and will offer the
         most promising ones to its Chinese customers. For example, some
         solutions that are currently being developed by the Company and that
         Management anticipates bringing to market in 2005 include:

o        Mobile Solutions for Education Providers

o        Mobile Insurance Services

o        Mobile Traffic Information

o        SMS Securities Services

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                           10. GROWTH BY ACQUISITIONS

         China Mobility Solutions Inc. plans to grow organically but also to
         grow by acquiring other Chinese mobile companies that will complement
         the services offered by us.

         Management has already initiated preliminary review of several
         companies that would deliver significant synergies, revenue and profits
         if acquired by China Mobility Solutions Inc. These include:

         A "little smart" phone operator in Tianjin. Two out of every three new
         fixed-line subscribers in China are Little Smart users. Little Smart
         users pay about one-fourth of what regular cellular subscribers do for
         calls allowing people on lower incomes to get a wireless service. A
         Little Smart handset looks like a cell phone and, for the most part,
         works like a cell phone: users can make calls and send text messages
         just as they can with a standard cell phone. Technically, however,
         Little Smart is a limited-mobility extension of the fixed-line phone
         network. The only functional difference from cellular phones is that
         Little Smart users can't roam beyond their home cities. The biggest
         operator for little smart phone is China Net Com who just went public
         in Hong Kong and US last month. With the funding China Net Com raised
         from these two markets, there will be a even stronger growth in little
         smart phone market.

         A mobile billing system provider

         An SMS stock messaging service

                         11. MANAGEMENT AND ORGANIZATION

         A highly qualified and experienced team of individuals manages China
         Mobility Solutions. From its previous Internet services business, China
         Mobility Solutions (led by CEO Xin Wei and President Angela Du) set up
         branches in 19 cities in China, managed more than 200 employees, and
         generated approximately U$7 million in sales in 2003.

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         Our Vice-President in China, Michael Liu, was previously president of a
         major investment company. Our CTO, Frank Wu, was a senior executive for
         Motorola.

         THE COMPANY'S OPERATIONS MANAGEMENT

         Xin Wei, Chief Executive Officer

         Mr. Wei is the co-founder of China Mobility Solutions Inc. He has a
         computer science background and started his own business before he
         graduated from university. He has been president of several companies
         in China, including both domestic and Sino-foreign joint venture
         companies in China. Mr. Wei has a broad network amongst government
         authorities and within telecommunication industry. He is also
         experienced in building up a major Internet services business in China,
         having successfully operated Xinhai Technology and Development Corp.,
         an Internet value added company, that within three years became the
         largest in Web hosting and domain name registration business in China.

         Michael Liu, Vice President of China Operation

         Mr. Liu was President of an Investment Company owned by the Beijing
         Municipal Planning and Management Committee and was President of
         Beijing Sitech Corp. before he co-founded QuickNet. Mr. Liu received
         his Masters degree in Finance from The Central University of Finance
         and Economics in Beijing.

         Frank Wu, Chief Technology Officer

         Mr. Wu was Senior Manager of Motorola China's Computer Department for
         many years. He was involved in developing the national standards of
         billing and access systems for telecom service providers in China and
         was involved in establishing the standard (SGIP) for China Mobile in
         2000. In 2001, he helped establish the standard for China Unicom's SMS
         and other mobile value added services. Mr. Wu received his Master's
         degree from the Telecommunication Science and Technology Research
         Institution.

         THE COMPANY'S BOARD OF DIRECTORS

         Angela Du, President

         Ms. Du received a Master of Science in Finance and Management Science
         in 1996 from the University of Saskatchewan Canada. She has been
         President of Infornet Investment Corp, the Company's wholly owned
         subsidiary in Canada, since 1997. She was one of the founders of China
         Mobility Solutions and successfully run the domain name registration
         and web hosting business in China. She was the President of the Company
         from 1997 to 1999, and from 2003 to now.

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         Ernest Cheung, Director and Secretary

         Mr. Cheung has been a Director of China Mobility Solutions Inc. since
         2002. He received a MBA in Finance and Marketing from Queen's
         University, Ontario in 1975. From 1991 to 1993 he was Vice President of
         Midland Walwyn Capital, Inc. of Toronto, Canada, which is now Merrill
         Lynch Canada. He has served as a director of several public companies.

         Recently two new individuals have been added to the Board of Directors
         of the Company and their presence will provide China Mobility Solutions
         Inc. with additional senior expertise.

         Greg Ye, MBA, CPA - Director.

         Mr. Ye brings 12 years of management, consulting and investment
         experience in a broad range of business and technology disciplines. He
         is currently in charge of developing and implementing corporate
         strategies as Group Director of Strategic Marketing for Cadence Design
         Systems Inc, the world's 9th largest software company, listed on both
         the NYSE and NASDAQ. Previously, he worked for Cisco Systems as a
         market development manager and PricewaterhouseCoopers, where he spent
         six years advising high-tech. companies based in the U.S. and Asia. He
         co-founded a Silicon Valley based incubator for high-tech companies in
         China in 1999 and serves as an advisor for several other high-tech.
         start-up companies in the U.S. Mr. Ye received his MBA from Harvard
         Business School and his BSEE from Shanghai Jiao Tong University, China.
         He is a Certified Public Accountant and a Certified Management
         Accountant.

         Michael J.P. Moen, Director

         Mr. Moen, recently a Senior Vice President in U.S. Institutional Sales
         for Burlington Capital Markets in New York, has spent the past several
         years with some of the most prestigious firms on Wall St. Previous
         positions include US Institutional Sales - Senior Analyst for Goldman
         Sachs, a Buyside Trader for CIBC World Markets, and Retail Equity Sales
         for Salamon Smith Barney. Previously he was an Accountant with Moen &
         Company Chartered Accountants of Vancouver. Mr. Moen earned his Master
         of Business Administration in International Finance from the University
         of Southern Europe and his Bachelor of Accounting from the University
         of Minnesota.

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         THE COMPANY'S ORGANIZATIONAL STRUCTURE

         It is Management's view that few companies in China can match the
         ability of the team assembled by China Mobility Solutions Inc. The
         10-person R&D team and the 20-person technical support team are capable
         of planning, designing and implementing a multitude of mobile solutions
         for business.

         The Company's current focus is in building up its sales and marketing
         departments by adding more in-house salespeople, customer service
         support staff and marketing agents.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
Department                          Current # of Staff                 Post-Financing # of Staff
----------------------------------------------------------------------------------------------------------
<S>                                 <C>                                <C>
Management                                          5                                  7
----------------------------------------------------------------------------------------------------------
Administration                                      5                                  9
----------------------------------------------------------------------------------------------------------
R&D                                                 10                                 20
----------------------------------------------------------------------------------------------------------
Technical Support                                   20                                 50
----------------------------------------------------------------------------------------------------------
Marketing                                           5                                  10
----------------------------------------------------------------------------------------------------------
Sales                                               25                                 40
----------------------------------------------------------------------------------------------------------
Total                                               70                                136
----------------------------------------------------------------------------------------------------------
</TABLE>

                       12. OBJECTIVES AND USE OF PROCEEDS

         Management of China Mobility Solutions has set the following objectives
         for the next twelve months.

         OBJECTIVE #1

         Raise US$12 million of equity into China Mobility Solutions.
         Cost of Objective #1: US$1,200,000

         OBJECTIVE #2

         Acquire the fixed assets and spend the marketing expenses required to
         launch its next four mobile business solutions - Office Automation
         Solutions, Mobile Banking, Mobile Tax Services, and SMS-based Services
         for Police - into the market. Cost of Objective #2: US$1,000,000

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         OBJECTIVE #3

         Aggressively market the existing and new solutions of the Company
         through increased advertising and a larger sales force. Cost of
         Objective #3: US$1,500,000

         OBJECTIVE #4

         Open 15 sales support offices across China. Cost of Objective #4:
         US$1,000,000

         OBJECTIVE #5

         Expend R&D funds on enhancing existing mobile solutions and on
         developing new mobile solutions for businesses, including acquires
         software from third party. Cost of Objective #5: US$1,000,000 -
         US$2,000,000

         OBJECTIVE #6

         Identify, analyze and finalize opportunities for the acquisition of
         other mobile companies in China that would deliver synergistic
         benefits. We plan to acquire the rest 49% ownership of Beijing QuickNet
         before the end of this March. Cost of Objective 6: up to US$4,000,000

         OBJECTIVE #7

         Reserve funds for general working capital. Cost of Objective 7:
         US$1,500,000

         TOTAL COST OF ABOVE OBJECTIVES: about US$12 million

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