Document:

exhibit_10-1.htm

    LETTER
OF INTENT

    

    

    

    
      Re:
Acquisition of the common stock of Peopleline Telecom Inc.

      

      by

      

      China
Mobility Solutions, Inc.

      

      and

      

      Edward
Gallagher

    

    

    

    Peopleline
Telecom Inc., a Nevada corporation with offices at Suite 2, 175 E 15th Ave,
Vancouver, British Columbia V5T 2P6 hereinafter referred to as PPTM
(Seller);

    

    China
Mobility Solutions, Inc., a Florida corporation with registered offices at
407-1270 Robson Street, Vancouver, British Columbia V6E 3Z6 hereinafter referred
to as CHMS (Buyer) are the parties to this Letter of Intent.

     

    It is
intended that the parties shall describe and execute all necessary documents and
will cooperate with each other to the fullest extent possible toward the
objective of consummating the acquisition of PPTM by China Mobility Solutions,
Inc. at the earliest possible date per the attached schedule.

    It is
understood by the parties to this Letter of Intent that both PPTM and CHMS are
publicly owned Corporations that are reporting corporations and, as such, the
acquisition would have to be approved by the majority of shareholders of both
companies pursuant to applicable State laws and in compliance with the U.S. and
state securities laws.

    

    PPTM
management hereby commits to refer to the acquisition plan herein outlined to
the PPTM shareholders with a recommendation for approval. Material matters
relating to the acquisition are as follows:

    

    
      	
              1.  

            	
              Name
      of Peopleline Telecom Inc.

            

    

    
      	
               
      

            	
              A.  The
      Acquisition (“Agreement”) and plan of reorganization (“Plan or
      Reorganization”) will provide for a change of PPTM Management upon
      consummation of the business combination to operate still as Peopleline
      Telecom Inc.

            

    

    

    
      	
              2.  

            	
              Management

            

    

    
      	
               
      

            	
              A.  The
      business combination will provide for the resignation of the current
      officers and directors of PPTM and the election as of the acquisition date
      of a new Board of Directors nominated by
CHMS.

            

    

    

    
      	
              3.  

            	
              PeopleLine
      Telecom Inc.

            

    

    
      	
               
      

            	
              A.  PeopleLine
      Telecom Inc. will be the sole operating subsidiary of the business
      combination.  All other operations of CHMS will be spun-off or
      discontinued.

            

    

    

    
      	
              4.  

            	
              Information
      on Stock

            

    

    
      	
              A.  

            	
              On
      the date of the Acquisition, PPTM will have two hundred million common
      shares, $0.001 par value, common stock authorized. That will be a
      condition precedent to the completion of the business
      combination.

            

    

    

    
      	
              B.  

            	
              As
      of the date of acquisition, PPTM will have forty million three hundred and
      ninety-four thousand four hundred and twenty-seven (40,394,427) shares of
      its common stock outstanding.

            

    

    

    
      	
              C.  

            	
              PPTM
      will propose to its shareholders of currently issued stock that
      immediately prior to the consummation of this business combination, the
      issued and outstanding shares will
be:

            

    

    
      	
              1.  

            	
              No
      more than 40,394,427 common shares held by existing shareholders of
      PPTM.

            

    

    

    
      	
              2.  

            	
              Purchase
      of the Thirty million (30,000,000) PPTM shares held by four (4) existing
      shareholders at $0.015 per share ($450,000) to be facilitated within
      ninety (90) days from the date hereof.  An initial deposit of
      $100,000 on agreeable terms with the remaining $350,000 paid within ninety
      (90) days from the date hereof. Paul Fang shall act as the escrow Lawyer
      for this transaction.

            

    

    

    
      	
              5.  

            	
              The
      company debt of Peopleline Telecom Inc approximating $325,000 will be the
      responsibility of the buyer and new management.  CHMS shall
      secure the approval of at least 75% of its outstanding debenture holder to
      the terms of this transaction.

            

    

    

    
      	
              6.  

            	
              Verification
      of Good Standing and Other clean close considerations will be
      required.

            

    

    

    
      	
              A.  

            	
              PPTM
      will submit a Certificate of Good Standing from the State of
      Nevada.

            

    

    

    
      	
              B.  

            	
              CHMS
      and PPTM will represent that neither party or any of its principal
      officers or directors present to be proposed is subject of any sanctions
      imposed by any Federal or State Securities Agency, except as may otherwise
      be disclosed in writing and become part of the a disclosure to the PPTM
      shareholders as part of the
agreement.

            

    

    

    
      	
              C.  

            	
              PPTM
      and CHMS will represent in writing to each other that each party is not
      currently involved in or threatened by litigation to which it is aware, or
      if such does occur, that such has been disclosed or will be
      disclosed.

            

    

    

    
      	
              D.  

            	
              PPTM
      will provide the parties a current audited financial statement through
      12/31/07 and an unaudited statement as of
  03/31/08.

            

    

    

    
      	
              E.  

            	
              Both
      parties to this Letter of Intent agree to cooperate with each other in
      providing documentation as the other requests for use in preparation of
      their respective statements and the post consolidated
      statement.

            

    

    

    
      	
              F.  

            	
              The
      parties shall each comply with the laws, rule and regulations of every
      appropriate jurisdiction as they apply without regard to the proposed
      acquisition, including without limitation everything incident
      thereto.

            

    

    

    
      	
              7.  

            	
              Responsibility
      of Costs.

            

    

    

    
      	
              A.  

            	
              PPTM
      agrees to pay its legal and accounting
fees.

            

    

    

    
      	
              B.  

            	
              CHMS
      agrees to pay its legal and accounting
fees.

            

    

    

    

    
      	
              8.  

            	
              Final
      Agreement.

            

    

    

    This
Letter of Intent IS NOT the Final Agreement (“Acquisition Agreement”) between
the parties, but does represent the terms and conditions, which the parties
understand, will be incorporated into such an Acquisition Agreement. The
Acquisition Agreement shall also contain all customary and usual warranties,
covenants and indemnities.  Completion of the transaction is
conditional upon satisfactory completion of due diligence by both parties,
respective Board of Directors and shareholders approval, if required, and other
customary closing conditions.

    

    No
commitment by either party to this Letter of Intent will be binding in the event
of the material discrepancy between the actual operation of financial conditions
and its

    represented
condition as disclosed in the course of the execution of the Acquisition
Agreement.

    

    
      	
              9.  

            	
              Jurisdiction

            

    

    

    The
Agreement will be governed by the jurisdiction of the State of
Nevada.

    

    
      	
              10.  

            	
               Sale
      of PPTM Assets.

            

    

    

    Non-applicable.

    

    
      	
              11.  

            	
              Signatures.

            

    

     

    This
Letter of Intent and the final purchase agreement may be signed in
counterpart.

     

    WHEREAS,
the foregoing Letter of Intent represents the present understanding of the
Parties, each shall so designate by the signature of their authorized
representative on the date and place provided herein.

     

     

    
      
        	
                Dated
      this 5th of June, 2008

                 

              	 
      	 
      	 
      	 
      
	
                 

                PPTM             

                                                

              	 
      	
                 

                China
      Mobility Solutions, Inc

              	 
      
	
                /s/
      Thompson
      Chu

                    
      Thompson Chu

                 

              	 
      	
                 /s/
      Angela
      Du

                    
      Angela Du, President

              
	
                /s/
      Ida
      Chu

                   
      Ida Chu

                 

                /s/
      John
      McDermott

                    
      John McDermott

                 

                /s/
      Russ
      McDermott

                    
      Russ McDermott

              	 
      	
                /s/
      Edward
      Gallagher

                    
      Edward GallagherDepartment Stores National Bank

701 E. 60th Street North

Sioux Falls, South Dakota 57104

                                                                                    

May
30, 2008

Macy's Inc.
(fka Federated Department Stores, Inc.)

7 West Seventh Street

Cincinnati, Ohio 45202

Attention:  General Counsel

FDS Bank

9111 Duke Boulevard

Mason, Ohio   45040

Attention: 
President

Macy's Credit
and Customer Services, Inc. (fka FACS Group, Inc)

9111 Duke Boulevard

Mason, Ohio   45040

Attention: 
President

Ladies and
Gentlemen:

            Reference is made to the Credit Card Program
Agreement, dated as of June 1, 2005 (as amended, supplemented or otherwise
modified from time to time, the "Program Agreement"), by and among Macy's
Inc. (fka Federated Department Stores, Inc.), a Delaware corporation, ("Macy's,
Inc."), FDS Bank, a federally-chartered stock savings bank ("FDS Bank"),
Macy's Credit and Customer Services, Inc. (fka FACS Group, Inc.), an Ohio
corporation ("MCCS", FDS Bank,  Macy's
Department Stores, Inc., an Ohio corporation ("Macy's"), Bloomingdale's,
Inc., an Ohio corporation ("Bloomingdale's") (collectively, the "Macy's
Companies"), and Citibank, N.A., a
national banking association ("Bank"), the interest of which under the
Program Agreement was subsequently assigned to Department Stores National Bank
("DSNB").  Capitalized terms used herein but not defined herein shall
have the meanings given to such terms in the Program Agreement.

            Consistent with our recent discussions, DSNB
and the Macy's Companies wish to revise the Program Agreement in certain
respects. This restated letter is effective as of December 18, 2006 (the
"Letter Agreement"), and sets forth below our understanding of the revisions to
which the parties have agreed. 

1.          Schedule 9.3(a) item
(b)(i) is hereby amended by deleting the same in its entirety and substituting attached
new Schedule 9.3(a) item (b)(i) in its place.  

2.         Effective with the
August 2006 Settlement Statement, the definition of "Bad Debt Reserve" in
Section 1.1 of the Program Agreement is amended and restated in its entirety to
read as follows:

"Bad Debt Reserve" means the bad debt reserve
maintained by Bank solely with respect to the Accounts under the Program in an
amount, from time to time, equal to the product of (i) forty percent (40%) of
the aggregate amount of Cardholder Indebtedness multiplied by (ii) the
Loss Rate multiplied by (iii) 7/12.  For purposes of this definition, "Loss
Rate" means, with respect to the twelve (12) Fiscal Month period with
respect to which the calculation of the Bad Debt Reserve is being made, a
percentage equal to (i) (A) the actual aggregate amount of Cardholder
Indebtedness written-off under the Program for the twelve (12) Fiscal Month
period (which period includes the Fiscal Month in which the calculation is
being made and the eleven [11] Fiscal Months immediately preceding the
calculation), calculated on a sum of cycles basis of reporting monthly
receivables under the Accounts, minus (B) the actual aggregate amount of
Cardholder Indebtedness written-off under the Program actually recovered with
respect to previously written-off Cardholder Indebtedness during such twelve
(12) Fiscal Month period (including recovery of sales taxes paid on written-off
Cardholder Indebtedness), divided by (ii) the actual average amount of
Cardholder Indebtedness under the Program for each Fiscal Month during such
twelve (12) Fiscal Month period (in each case, calculated on a sum of cycles
basis of reporting monthly receivables under the Accounts for each Fiscal
Month).". 

3.         Except as expressly
amended by this Letter Agreement, the Program Agreement, as previously amended,
remains in full force and effect in accordance with its terms.

4.          Counterparts;
Facsimile. This Letter Agreement may be executed in any number of counterparts,
all of which together shall constitute one and the same instrument, but in
making proof of this Letter Agreement, it shall not be necessary to produce or
account for more than one such counterpart.  Any facsimile of an executed
counterpart shall be deemed an original.

5.         The agreements of
the parties set forth herein shall have the same effect as if approved by the
unanimous approval of the Operating Committee pursuant to Article III of the
Program Agreement.  

[Remainder of Page
Intentionally Left Blank]

Please acknowledge your
agreement with the foregoing by executing this Letter Agreement as indicated
below.

                                                                              Very
truly yours,                 

                                                                              DEPARTMENT STORES NATIONAL BANK

By:   /s/
Douglas C. Morrison

Name:
Douglas C. Morrison

Title: Citi Cards

        Vice
President and Chief Fin. Officer

        Sioux Falls, SD

Agreed to by:

MACY'S, INC.
(fka Federated Department Stores, Inc.) 

By:   /s/ 
Dennis J. Broderick

Name:
 Dennis J. Broderick

Title:  SVP, General Counsel & Secretary

FDS BANK

By:   /s/ 
Teresa Huxel

Name: Teresa Huxel

Title:  President

MACY'S CREDIT
AND CUSTOMER SERVICES, INC. (fka FACS Group, Inc.)

By:   /s/ 
Teresa Huxel

Name:  Teresa Huxel

Title:  SVP & CFO 

MACY'S
DEPARTMENT STORES, INC.

By:   /s/ 
Dennis J. Broderick

Name: Dennis J. Broderick

Title:  President

BLOOMINGDALE'S,
INC.

By:   /s/
Dennis J. Broderick

Name:
  Dennis J. Broderick

Title:   Vice President

SCHEDULE 9.3(a)
item (b)(i)

        

            "(i)       an
amount equal to $5 per new Private Label Account for the first 6,000,000    Private
Label Accounts in any Fiscal Year originated in an FDS Channel after the Effective
Date and activated by the Cardholder for the first time in the prior Fiscal Month;
provided that such activation occurred within 12 months of account
opening;

        The
Parties acknowledge that they have heretofore treated Private Label Accounts
that  have been inactive for sixty (60) consecutive months or longer as "new"
Private Label  Accounts for purposes of the New Account Payment contained in
Schedule 9.3(a), if such Private Label Accounts otherwise satisfy the
requirements of item (b)(i) of Schedule 9.3(a), even though such practice is
not expressly set forth in item (b)(i) of Schedule 9.3(a) (the "Original
Definition"). The parties agree that, from and after August 1, 2006, the
New Account Payment relating to Private Label Accounts reflected in item (b)(i)
of Schedule 9.3(a) is changed from $5.00 (the "Original New Account Payment")
to $4.53 per new Private Label Account (the "Revised New Account
Payment").  From and after August 1, 2006, a Private Label Account
reopened by an existing but inactive Cardholder is eligible for the Revised
New Account Payment if such Private Label Account has been inactive for
thirty-six (36) consecutive months or longer (the "Revised Definition"),
rather than for 60 months. It is the Parties' intention that these changes will
 be revenue-neutral, i.e. that the amount of money paid to the
Macy's  Companies  utilizing the Revised Definition and the Revised New
Account Payment shall be the same as the amount that would have
been paid utilizing the Original Definition and the Original New Account
Payment. At the end of each three (3) month period after August 1,
2006, DSNB and the Macy's Companies shall compare the total of Revised
New Account Payments made for such three (3) month period (the "Revised
Payment Amount") with an amount determined by multiplying the
total number of Accounts that would have been opened utilizing the
Original Definition during such three (3) month period by the Original New
Account Payment (the product of such multiplication being  the  "Original
Payment Amount"). If the result of the Revised Payment Amount exceeds the
result of the Original Payment Amount, the Macy's Companies shall pay the difference
to DSNB; if the result of the Original Payment Amount exceeds the result of the
Revised Payment Amount, DSNB shall pay the difference to the Macy's Companies.  At
the end of each six (6) month period following August 1, 2006, the New Account Payment
shall be adjusted by an amount necessary to make the total Revised Payment Amount
for the preceding six (6) month period equal the Original Payment Amount for the
preceding six (6) month period. The
adjusted New Account Payment determined in this manner shall apply until
adjusted as provided for herein. By December 15, 2006, the  Macy's Companies
shall develop the MIS necessary to perform the calculations contained
in this paragraph."

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