Document:

EXHIBIT 10.17  

EMPLOYMENT AGREEMENT 

THIS AGREEMENT made to have effect the 1st day of August, 2003. 

BETWEEN: 

	  	
MDSI
MOBILE DATA SOLUTIONS INC., a corporation duly 

incorporated under the federal laws of Canada and having its offices 

at 10271 Shellbridge Way, Richmond, B.C. V6X 2W8 

(the “Company”)

AND: 

	  	
Peter Hill Rankin, a businessman, residing at: 3378 Panorama Drive, 

Whistler, BC  V0N 1B3

(the “Executive”)

	  	
WHEREAS:

	A.  	  	The
Company has employed the Executive on a continuous basis since May 7, 2001
                    and the Executive currently serves the Company in his capacity as the
Vice                     President Strategic Planning and Performance Improvement.  

	B.  	  	The
Company wishes to continue employing the Executive and the Executive is
                    willing to accept such continued employment upon the terms and
conditions set                     forth in this Agreement; and  

	C.  	  	The
Company and the Executive wish to record certain matters of mutual interest
                    in connection with the Executives’ employment by the Company.  

	  	
NOW
THEREFORE in consideration of the premises and the mutual covenants and agreements herein
set forth the parties hereto mutually covenant and agree as follows:  

	1.  	  	EMPLOYMENT  

	1.1  	  	The
Company hereby employs the Executive to be the Vice President Strategic Planning and
Performance Improvement of the Company and the Executive hereby accepts such employment.
The Executive shall report to the President and CEO of the Company and shall perform all
duties and have all authority incident to the position of Vice President Strategic
Planning and Performance Improvement of the Company, and such additional  

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duties
as he may from time to time be reasonably required to perform, and such additional
authority as he may from time to time be given, by the President and Chief Executive
Officer.  

	1.2  	  	The
Executive shall perform his duties out of the Richmond office of the Company or out of
such other office in the lower mainland area of British Columbia, which the Company shall
establish and designate as its Vancouver head office. The Executive’s duties may
involve extensive domestic and international travel.  

	2.  	  	EXCLUSIVE
SERVICE  

	2.1  	  	Except
as expressly provided the Executive shall, during his employment with the Company, devote
his entire attention on a full time basis to the business of the Company. Provided he
obtains the prior written approval of the President and Chief Executive Officer the
Executive may, during his employment with the Company undertake work as a director or
consultant to any other company, firm or individual that is not in competition with the
Company.  

	3.  	  	SALARY
AND BONUSES  

	3.1  	  	The
Company shall pay the Executive an annual base salary (“Base Salary”) of
Canadian $220,000 gross payable semi-monthly which shall be reviewed from time to time at
the sole discretion of the Company.  

	3.2  	  	An
annual incentive plan that will provide additional earning potential based upon the
achievement of predetermined objectives and corporate earnings. Details are outlined in
the Executive Management Bonus Program (Schedule A).  

	3.3  	  	All
payment of salary shall be subject to deduction of all applicable Federal and Provincial
income tax, unemployment insurance, Canada Pension deductions and other deductions
required at law or made pursuant to this Agreement  

	4.  	  	EXPENSES  

	4.1  	  	The
Company shall provide to the Executive the following expenses, reimbursements, equipment
and allowances: 

	  	(i)  	  	reimbursement
for all reasonable and necessary expenses incurred by the                Executive in the
conduct of the business of the Company in accordance with                travel and
expense policies established by the Company from time to time; and  

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	  	(ii)  	  	appropriate
hardware/software, including cell phone, pager, and a portable           computer
selected by the Company to permit the Executive to operate effectively           while
away from the office or at home and reimbursement of associated costs.  

	5.  	  	STOCK
OPTIONS  

	5.1  	  	The
Executive shall be entitled to participate in the Stock Option Plan as established by the
Company and amended from time to time. A copy of that Plan has been supplied to the
Executive who acknowledges its receipt.  

	5.2  	  	All
stock options granted to the Executive pursuant to this Agreement shall automatically
vest in the event of a Change of Control (as defined in the Company’s Stock Option
Plan) except for those stock options issued to the Executive on or after March 1, 2000
which stock option certificate provides that notwithstanding the provisions in the
current Company’s Stock Option Plan regarding accelerated vesting in the event of a
Change of Control (as defined in the Plan) or Terminating Event (as defined in the Plan),
in the event a Change of Control or Terminating Event occurs only those Stock Options
that would have ordinarily vested to the Executive over the next twelve months will
immediately vest, and the balance of the unvested options will only be accelerated if an
entity causing an Change of Control or Terminating Event does not establish a successor
stock option plan or similar program that rolls over and preserves the balance of the
unvested Options granted to the Executive.  

	5.3  	  	Stock
options, which have vested, may be exercised at any time up to five years from the date
of grant. Except as provided for in section 12.4, those stock options which have not
vested by the date of termination of the Executive’s employment with the Company
shall expire automatically as of that date. Upon termination of his employment by
resignation, the Executive shall have a period of thirty (30) days in which to exercise
vested share purchase options, failing which those options shall expire automatically. In
the event of termination for cause all stock options shall be cancelled and expire
coincident with such termination.  

	6.  	  	VACATION  

	6.1  	  	The
Executive shall be entitled to six (6) weeks (30 working days) vacation per annum to be
taken at such time(s) as the Executive and the Company may mutually and reasonably agree
upon. The Executive is expected to take his entire entitlement during the calendar year.
However, in the event the entire entitlement cannot be taken during the calendar year,
the executive may carry forward a maximum of five (5) days vacation from the current year
entitlement. The Executive must bring the matter to the attention of the President & CEO
who must approve any such carry forward vacation.  

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	7.  	  	BENEFITS  

	7.1  	  	The
Executive shall receive those benefits (including medical, dental, extended health
insurance, short and long term disability, life insurance and family assistance) that are
provided to Canadian based employees in the Company Employee Benefit Program (the “Program”)
in effect upon the Executive’s employment date as that Program may be modified from
time to time. A copy of the Program has been supplied to the Executive who acknowledges
its receipt.  

	8.  	  	SICK
LEAVE  

	8.1  	  	If
the Executive shall, at any time, by reason of illness or mental or physical disability,
be incapacitated from carrying out the terms of this Agreement, he shall furnish the
Company with medical evidence to prove such incapacity and the cause thereof, and shall
receive his full salary and benefits for a period of 180 days or until long term
disability begins whichever period is shorter.  

	9.  	  	NON-DISCLOSURE
OF CONFIDENTIAL INFORMATION, TRADE SECRETS AND WORK PRODUCT  

	9.1  	  	The
Executive acknowledges that as Vice President Strategic Planning and Performance
Improvement of the Company, he holds a fiduciary position and owes to the Company a duty
of utmost loyalty and good faith. The Executive agrees to serve the Company well and
faithfully and to the best of his ability, and to use his best efforts to promote its
interests.  

	9.2  	  	In
this Agreement the following terms shall have the meanings described below: 

	  	(a)  	  	“ Confidential
Information” means any information concerning           the Company’s
scientific, technological, financial and business interests           which is not
generally available to third parties and is identified or is           reasonably capable
of being identified as confidential and proprietary           information of the Company.
Confidential Information shall include but not be           limited to: (a) production
processes and materials; customer lists and           requirements; business plans and
strategies; and other materials or information           relating to the business of the
Company; (b) computer software in source and           executable code, and related
documentation in any media including all           modifications, enhancements and
versions and all options available for such           software; and (c) information
defined herein as a Trade Secret but which is           determined by a court of
competent jurisdiction not to rise to the level of a           trade secret under
applicable law.  

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	  	(b)  	  	“Trade
Secret” means any information which is identified or is           reasonably
capable of being identified as confidential and proprietary           information of the
Company which: (a) has economic value, actual or potential to           the Company
because it is not generally known to other persons who might obtain           economic
value from its disclosure or use; or (b) the Company has made           reasonable
efforts to keep secret or out of the public domain.  

	  	(c)  	  	
“Work
Product” means any work, research, design ideas or           development in
whatever medium which is produced, created or developed by the           Executive during
the term of this Agreement pertinent to the Company’s           scientific,
technological, financial or business interests and may include           Confidential
Information and Trade Secrets.  

	9.3  	  	The
Executive agrees that both during and after the term of this Agreement he shall keep
confidential and shall not directly or indirectly divulge or disclose to anyone nor use
or otherwise appropriate Confidential Information, Trade Secrets or Work Product, except
as required in the performance of his duties or as required by law.  

	9.4  	  	The
Executive agrees that in the course of his employment with the Company he will not bring
to or use at the Company the confidential materials of a former employer or third party,
which are not generally available to the public.  

	10.  	  	OWNERSHIP
AND USE OF WORK PRODUCTS  

	10.1  	  	The
Executive agrees that any Work Product shall be the sole and exclusive property of the
Company. The Company is and shall be the sole owner of all copyrights, patents and other
intellectual property rights in the Work Product.  

	10.2  	  	The
Executive agrees to assign to the Company any rights that he may have or acquire in the
Work Product and hereby waives all claims to any right, title or interest in the Work
Product, including any moral rights which he may have or acquire in the Work Product or
to its use, including the right to restrain or claim damages for any distortion,
mutilation or other modification of the Work Product or any part thereof whatsoever, or
to restrain use or reproduction of the Work Product in any context, or in connection with
any product or service. At any and all times during the term of this Agreement the
Executive shall upon the request of the Company promptly perform all such acts and
execute and deliver all such documents that may be necessary to vest in the Company the
entire right, title and interest in and to any Work Product.  

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	11.  	  	CONFLICT
OF INTEREST AND NON-COMPETITION CONFLICT OF INTEREST AND NON-COMPETITION  

	11.1  	  	The
Executive agrees that the Company has a legitimate interest in ensuring that Confidential
Information, Trade Secrets and Work Product will not fall into the hands of its
competition nor be used by the Executive for any purpose other than the execution of his
duties as an Executive of the Company. Accordingly it is specifically agreed that:  

	  	(a)  	  	During
the term of this Agreement the Executive shall not compete with the
               Company. Without limiting the generality of this provision, the Executive
shall                not during the term of this Agreement, for his own account or for
the account of                a third party, directly or indirectly develop, design,
manufacture, sell or                solicit for sale or lease products including computer
programs, codes and                documentation similar in function to those developed,
designed, manufactured or                sold by the Company;  

	  	(b)  	  	The
Executive shall not for a period of eighteen (18) months following the
               termination of his employment, whether for his own account or for the
account of                a third party, directly or indirectly, develop, design,
manufacture, sell or                solicit for sale products which are the same or
similar in concept or function                to products developed, designed,
manufactured or marketed by the Company during                the period of two (2) years
immediately preceding the date of termination of the                Executive’s
employment;  

	  	(c)  	  	For
a period of eighteen (18) months following the termination of his
               employment, the Executive shall not, whether for his own account or for
the                account of a third party, directly or indirectly, sell or solicit for
sale                products which are the same or similar in concept or function to
those                developed, designed, manufactured or marketed by the Company to any
customer or                potential customer of the Company. For purposes of this
section                “customer” means any person from whom the Company has
received an                order during the two (2) years immediately preceding the date
of termination of                the Executive’s employment. “Potential customer” means
those                persons who have contacted the Company or have been contacted the
Company with a                view to obtaining an order during the two (2) year period
immediately preceding                the date of terminating the Executive’s
employment.  

	  	(d)  	  	For
a period of eighteen (18) months following the date of termination of his
               employment, the Executive shall not, whether for his own account or for
the                account of a third party, directly or indirectly, offer or cause to be
offered                to any employee of the Company a new position or employment with
any other                person or company, nor shall the Executive solicit the
participation of any                Employee of the Company in any business, partnership,
association or enterprise.  

	11.2  	  	The
Executive acknowledges and agrees that there can be no geographic limit to his covenant
not to compete due to the nature of his employment and the extent of the business of the
Company, the market for the Company products and the technologies with which the Company
is involved.  

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	11.3  	  	The
parties to this agreement recognize that a breach by the Executive of any of the
covenants contained in Sections 9, 10 and 11 of this Agreement would constitute an
interference with the ongoing business of the Company and cause irreparable harm to the
Company which could not be adequately compensated for by monetary damages. The Executive
agrees that in the event of a breach by him of any of the covenants contained in Sections
9, 10 and 11 of this Agreement, he shall and hereby does consent to an injunction being
issued against him restraining him from any further breach of the said covenants. The
provisions of this section shall not be construed so as to affect or impair any other
remedies, which the Company may have in the event of such breach, including but not
limited to an action for damages.  

	12.  	  	TERMINATION
OF EMPLOYMENT  

	12.1  	  	Without
prejudice to any remedy the Company may have against the Executive for any breach or
non-performance of this Agreement, the Executive’s employment may be terminated at
any time effective immediately by the Company without previous notice and without payment
in lieu of notice for cause which, for the purposes of this agreement shall include but
not be limited to:  

	  	(i)  	  	dishonesty
in the course of the discharge of his duties as an employee;  

	  	(ii)  	  	gross
negligence or repetitive negligence committed without regard to corrective
               direction in the course of the discharge of his duties as an employee;  

	  	(iii)  	  	conviction
of any criminal offence other than an offence which, in the                reasonable
opinion of the Company does not affect the reputation of the Company                or
the Executive’s position as a representative of the Company;  

	  	(iv)  	  	                bankruptcy
or insolvency of the Executive;  

	  	(v) 	  	excessive
and unreasonable absences from his duties for any reason other than           sick leave
or authorized vacation.  

	  	(vi) 	  	material
breaches of the Company’s policies and procedures.  

	12.2 	  	
The Executive shall be entitled to terminate his employment with the Company, at will, at
any time by giving notice in writing to the Company of not less than eight weeks unless
otherwise agreed to in writing by the parties. In the event the Executive terminates his
employment with the Company, he shall be entitled to receive an amount equal to his total
accumulated vacation pay. 

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	12.3 	  	
The Company may terminate the employment of the Executive at will and without cause at any
time, including following a Change of Control, upon payment to the Executive of his Base
Salary owing up to the date of termination and a severance payment as outlined in
Paragraph 12.4 below and upon payment to the Executive of all compensation owing up to the
date of termination. 

	12.4  	  	The
amount of severance provided under paragraph 12.3 shall be calculated as follows: 

	  	
An
amount equal to eighteen (18) months basic salary. The severance payment shall be made
either in a lump sum within five (5) working days from the date of termination, or at the
Executive’s option, to be paid in intervals as mutually agreed to in writing by the
Executive and the Company within five (5) working days from the date of termination.  

	  	
The
Company shall maintain the Executive and his dependents on the Company Employee Benefit
Program during the currency of the eighteen (18) month severance period from the date of
termination. Such benefits shall be discontinued should the Executive be eligible to
participate in a benefit program sponsored by a subsequent employer. The Executive
acknowledges and agrees that he shall not be entitled to any other severance or
termination package in connection with his employment whatsoever. In the event the
Executive is terminated in accordance with this Section 12.3, the Company shall also pay
to him an amount equal to his total accumulated vacation. All stock options granted to
the Executive shall continue to vest during the eighteen (18) month period defined in
this section 12.4 and the Executive shall have a period of sixty (60) days from the
expiration of the eighteen month period in which to exercise vested share purchase
options.  

	12.5  	  	In
the event that at the date of termination of employment the Executive has earned but not
been paid portions of any Incentive, the Company shall, after termination continue to pay
out, on a pro ratio basis to the date of termination, any bonus owing at the applicable
time in accordance with any Incentive Program.  

	12.6  	  	The
Executive will not be required to mitigate the amount of any payment provided under this
Section 12 or any damages resulting from a failure of the Company to make any such
payment by seeking other employment, or otherwise, nor shall the amount of any payment
under this Section 12 be reduced by any compensation earned by the Executive from
employment or self employment.  

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	13.  	  	CHANGE
OF CONTROL OF THE COMPANY  

	13.1  	  	In
this section the term "Change of Control" shall mean: 

	  	(a)  	  	the
sale of greater than 50% of the issued and outstanding common shares in the
               capital of the Company pursuant to a “takeover bid” (as defined
in the                British Columbia Securities Act);  

	  	(b)  	  	the
disclosure that any person (a “Control Person”) directly or
               indirectly, beneficially or legally owns, or exercises control or
direction                over, greater than 50% of the issued and outstanding shares in
the capital of                the Company, in any insider trading report, information
circular, prospectus,                offering memorandum, material change report or other
disclosure document of the                Company or any such Control Person, filed or
required to be filed with the                British Columbia Securities Commission, the
TSE or any other securities                regulatory authority or stock exchange;  

	  	(c)  	  	the
sale or disposition of all or substantially all of the assets of the Company
               to a non-affiliated party;  

	  	(d)  	  	the
merger, amalgamation or consolidation of the Company with or into any other
               non-affiliated corporation; or  

	  	(e)  	  	the
appointment of a liquidator, receiver, receiver-manager, or trustee in
               bankruptcy of the Company, or the making of any assignment or proposal to
or for                the benefit of the creditors of the Company.  

	13.2  	  	In
the event that the Company undergoes a Change of Control and if the employment of the
Executive is terminated by the Company or terminated by the Executive for Good Reason
within 24 months of a Change of Control the Executive shall be entitled to receive the
severance package in accordance with the provisions of Sections 12.3 and 12.4 above.  

	13.3  	  	In
the event of a Change of control of the Company, the Executive may, for a period of
thirty (30) days from the date of such Change of Control, elect, in the Executive’s
complete and sole discretion, to terminate his employment with the Company in accordance
with section 12.2 above, in which case he shall be entitled to receive a severance
package described in Section 12.3 and 12.4 above.  

	13.4  	  	The
Executive will not be required to mitigate the amount of any payment or benefit provided
for under this Section 13 or any damages resulting from a failure of the Company to make
any such payment or to provide such benefit, by seeking other employment, or otherwise,
nor shall the amount of any payment or benefit provided for  

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under
this Section 13 be reduced by any compensation earned by the Executive from employment or self employment. 

	13.3  	  	For
the purposes of this Agreement "Good Reason" means: 

	  	a)  	  	Without
the express consent of the Executive, the assignment to the Executive of
                    duties materially inconsistent with his positions, duties and
responsibilities                     with the Company immediately prior to the date
hereof or any removal of the                     Executive from, or and failure to
re-elect the Executive to, material positions,                     duties and
responsibilities with the Company, except in connection with the
                    termination of the Executive’s employment for cause, disability
or                     retirement or as a result of the Executive’s death or
resignation by the                     Executive other than for Good Reason. For greater
certainty, the Executive shall                     be deemed to have consented to the
assignment of new duties if the Executive                     performed such duties for a
period of 60 days and the Executive does not advise                     the Company that
such duties constitute grounds for Good Reason;  

	  	b)  	  	A
reduction by the Company in the Executive’s salary as in effect on the
                    date hereof or as the same may be increased from time to time;  

	  	c)  	  	The
failure by the Company to continue in effect any incentive or compensation
                    plan, or any pension, life insurance, health and accident or
disability plan in                     which the Executive is participating at the date
hereof, (or plans providing the                     Executive with substantially similar
benefits) unless such plans have been                     replaced by new plans providing
the Executive with benefits that are as good as                     or better than the
benefits provided in such plans, or the taking of any action                     by the
Company which would adversely affect the Executive’s participation
                    in or materially reduce the Executive’s benefits under any of
such plans or                     deprive the Executive of any material fringe benefit
enjoyed by him at the date                     hereof;  

	  	d)  	  	The
requirement that the Executive be based anywhere other than the
                    Company’s principal executive offices except for required travel
on the                     Company’s business to an extent substantially consistent
with the                     Executive’s present employment or travel obligations,
or in the event the                     Executive consents to any such relocation, the
failure by the Company to pay (or                     reimburse the Executive for) all
reasonable moving expenses incurred by the                     Executive or to indemnify
the Executive against any excess in (A) the cost of a                     principal
residence at the time of the relocation, over (B) the amount realized
                    by the Executive upon the sale of his principal residence at the time
of the                     relocation or:  

	  	e)  	  	Any
reason which would be considered to amount to constructive dismissal by a
                    court of competent jurisdiction.  

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	14.  	  	RESIGNATION
AND INDEMNITY  

	14.1  	  	Upon
termination of this Agreement, the Executive will tender to the Company, and their
associated companies, his resignation as an officer and if applicable, his resignation as
a director.  

	14.2  	  	Subject
to the Canada Business Corporations Act, as amended from time to time (the “Act”),
the Company hereby indemnifies the Executive, his heirs, executors administrators and
personal representatives (collectively, the “Indemnitees”) and save the
Indemnitees harmless against all costs, charges and expenses actually and reasonably
incurred by the Indemnities in law, in equity or under any statute or regulation, in
connection with any civil, criminal, or administrative claim, action, proceeding or
investigation to which the Indemnitees are made a party or in which they are otherwise
involved as a witness or other participant by reason of the Executive being or having
been a Director or officer of the Company or its affiliated or associated companies,
including any action brought by the Company or companies, if:  

	  	(i)  	  	the
Executive acted honestly and in good faith with a view to the best interests
               of the Company or companies; and  

	  	(ii)  	  	in
the case of a criminal or administrative claim, action, proceeding or
               investigation, the Executive had reasonable grounds for believing that his
               conduct was lawful.  

	14.3  	  	Without
limiting the generality of the foregoing of Section 14.2 the costs, charges and expenses
against which the Company will indemnify the Indemnitees include:  

	  	(i)  	  	any
and all fees, costs and expenses actually and reasonably incurred by the
               Indemnitees in investigating, preparing for, defending against, providing
               evidence in, producing documents or taking any other action in connection
with                any commenced or threatened action, proceeding or investigation,
including                reasonable legal fees and disbursements, travel, and lodging
costs;  

	  	(ii)  	  	any
amounts reasonably paid in settlement of any action, proceeding or
               investigation;  

	  	(iii)  	  	any
amounts paid to satisfy a judgement or penalty, including interest and
               costs; and  

	  	(iv)  	  	all
costs charges and expenses reasonably incurred by the Indemnitees in
               establishing their right to be indemnified pursuant to this Agreement.  

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	14.4  	  	If
the Indemnitees or any one of them are required to include in their income, or in the
income of the estate of the Executive, any payment made under this Section 13 for the
purpose of determining income tax payable by the Indemnitees or any of them or the
estate, the Company shall pay an amount by way of indemnity that will fully indemnify the
Indemnitees or estate for the amount of all liabilities described in Section 14.2 and
Section 14.3 and all income taxes payable as a result of the receipt of the indemnity
payment.  

	14.5  	  	Upon
receipt of a written request by the Indemnitees for indemnification under this Agreement
(an “Indemnification Notice”), the Company will forthwith apply to the Supreme
Court of British Columbia for approval of the requested indemnification, will diligently
proceed to obtain such approval and will take all other steps necessary to provide the
requested indemnification as soon as practicable following receipt of the Indemnification
Notice.  

	14.6  	  	Any
failure by the Executive in his capacity as a director or officer of the Company to
comply with the provisions of the Act or the Memorandum, Articles or Bylaws of the
Company will not invalidate any indemnity to which he is entitled under this Agreement.  

	15.  	  	RETURN
OF PROPERTY  

	15.1  	  	In
the event of termination of this Agreement, the Company agrees to pay the Executive all
arrears of compensation, and all out of pocket expenses owing, up to and including the
effective date of termination, upon receipt from the Executive of (and the Executive
agrees to deliver to the Company);  

	  	(i) 	  	any
property of the Company which may be in the possession or control of the
          Executive; and  

	  	(ii)  	  	the
repayment of any sums owed by the Executive to the Company.  

	16.  	  	SURVIVAL  

	16.1  	  	Notwithstanding
the termination of this Agreement for any reason whatsoever the provisions of Sections 9,
10, 11 and 14 hereof and any other provisions of this Agreement necessary to give
efficacy thereto shall continue in full force and effect following such termination.  

	17.  	  	NOTICE  

	17.1  	  	Any
notice or other communication (each a “Communication”) to be given in
connection with this Agreement shall be given in writing and may be given by personal
delivery, by registered mail or by telecopier, addressed as follows:  

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	TO:	
MDSI Mobile Data Solutions Inc.

10271 Shellbridge Way

Richmond, B.C. V6X 2W8

Attn:      President

Phone:   604-207-6000

Fax:        604-207-6062

 

	AND TO:	
Peter Hill Rankin

3378 Panorama Drive

Whistler, BC    V0N 1B3
Phone:   604-932-2735

Fax:  604-932-2735

 

	  	
or
at such other address or telecopier number as shall have been designated by Communication
by either party to the other. Any Communication shall be conclusively deemed to be
received, if given by personal delivery, on the date and at the time of actual delivery
thereof and, if given by registered mail, on the fifth day following the date of mailing,
if given by telecopier, on the business day following the transmittal thereof. If the
party giving any Communication knows or ought reasonably to know of any actual or
threatened interruptions of the mails, such Communication shall not be sent by mail but
shall be given by personal delivery or telecopier. 

	18.  	  	ENTIRE
AGREEMENT  

	18.1  	  	Any
other previous agreements, written or oral, between the parties hereto relating to the
employment of the Executive by the Company are hereby terminated and cancelled and each
of the parties hereto hereby releases and forever discharges the other party hereto of
and from all manner of actions, causes and demands whatsoever under or in respect of any
such agreement. This Agreement, together with the Plans and Programmes which are by
reference expressly incorporated into it, constitutes and expresses the whole agreement
of the parties hereto with reference to the employment of the Executive by the Company,
and with reference to any of the matters or things herein provided for, or herein before
discussed or mentioned with reference to such employment; all promises, representations,
and understandings relative thereto being merged herein.  

	19.  	  	AMENDMENTS
AND WAIVERS  

	19.1  	  	No
amendment to this Agreement shall be valid or binding unless set forth in writing and
duly executed by both of the parties hereto. No waiver or any breach of any by the party
purporting to give the same and, unless otherwise provided in the written and signed
waiver, shall be limited to the specific breach waived.  

INITIAL  /s/ PHR     ED       

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	20.  	  	BENEFITS
OF AGREEMENT  

	20.1  	  	The
provisions of this Agreement shall enure to the benefit of and be binding upon the legal
representatives of the Executive and the successors and assigns of the Company
respectively.  

	21.  	  	SEVERABILITY  

	21.1  	  	If
any provision of this Agreement is deemed to be void or unenforceable, in whole or in
part, it shall not be deemed to affect or impair the validity or any other provision
hereby declared and agreed to be severable from each and every other section, subsection
or provision hereof and to constitute separate and distinct covenants. The Executive
hereby agrees that all restrictions herein are reasonable and valid and all defences to
the strict enforcement thereof by the Company are hereby waived by the Executive.  

	22.  	  	GOVERNING
LAW  

	22.1  	  	This
Agreement shall be governed by and construed in accordance with the laws of the Province
of British Columbia. The Company and the Executive hereby irrevocably attorn to the
jurisdiction of the courts of the Province of British Columbia, exclusively.  

	23.  	  	COPY
OF AGREEMENT  

	23.1  	  	The
Executive hereby acknowledges receipt of a copy of this Agreement duly signed by the
Company. 

INITIAL  /s/ PHR     ED       

-15- 

	  	
IN
WITNESS WHEREOF the parties have executed this Agreement as of the day and year first
above written:  

	
SIGNED, SEALED AND DELIVERED by

Peter Hill Rankin

in the presence of:

/s/ illegible

___________________________________

Witness

9511 Lasko St. Rich. B.C.
___________________________________

Address

V.P. Human Resources
___________________________________

Occupation

	
)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

	

/s/ Peter Hill Rankin

_____________________________________

           
          Peter Hill Rankin

MDSI MOBILE DATA SOLUTIONS INC. 

Per:  /s/ Erik Dysthe

     _________________________________

        Authorized Signatory

INITIAL  /s/ PHR     ED       

-16- 

Schedule “A” 

Executive Management Incentive Compensation Program  

This program has been designed to
provide an incentive for the achievement of the quarterly Corporate Earnings per share
targets as established by the Board of Directors, and your overall annual personal
performance. Your performance will be measured against the achievement of the goals and
objectives as noted in the strategic renewal document as well as any other individual
objectives. 

The Plan contains the following two
target components as set by the Board of Directors and a personal performance incentive; 

	  	• 	  	Target
incentive based on quarterly EPS (plus$0.01) results in an award of 6% of annual base
salary/quarter 

	  	•  	  	Stretch
incentive based on exceeding annual EPS results up to 40% of annual base salary 

	  	•  	  	Personal
performance incentive up to 16% of annual base salary 

The Corporate EPS targets (plus$0.01)
in each quarter are either achieved or not with the achievement of the target resulting in
the payment of the incentive award (i.e. 6% per quarter). The quarter’s results must
be achieved including the cost of the company’s incentive plan (i.e. all employees).
If the full amount of the quarterly incentive cannot be funded within the EPS requirement
then a prorated amount will be paid with the available funds. The unpaid amount will be
carried forward to year-end. This would occur similarly in subsequent quarters. At
year-end if, after paying the final quarter’s incentive, there are funds available
(i.e. within the yearly EPS requirement) than such funds would be used to pay (prorated if
necessary) the unpaid incentive balance. Any year-end unpaid balance will not be carried
forward to subsequent years. These quarterly incentives shall be paid within 30 days of
the company’s quarterly results being announced. In the event quarterly EPS in not
achieved 50% of any missed quarters incentive can be recovered if the year’s EPS
target is achieved. Depending on the amount of available funds this payment may need to be
governed by the pro-ration as described. Any resulting incentive from recovered quarters
or as a result of pro-ration will be paid along with any other incentive achieved for the
year. 

Personal performance incentive is 16%
of annual base salary to be calculated and paid annually within 30 days of the
announcement of the company’s annual audited results. Personal performance incentive
will only be paid if the year-end EPS target is achieved, can be prorated based on
available funds and if prorating is required personal performance incentive will take
priority over EPS incentive. Personal performance will be based on a 1-10 rating scale as
follows: 

1 = intolerable 2 = less than
tolerable 3 = barely tolerable 4 = less than satisfactory 5 = satisfactory 6 = more than
satisfactory 7 = exceeding 8 = significantly exceeding 9 = excelling10 = exceptional. A
rating of 5 would result in an award of 8%. 

The calculation of % achievement of
the stretch incentive (0-40% of base) will be pro rated to the % achievement of the
stretch target (to a maximum incentive of 40%). Payment of the stretch incentive will be
within 30 days of the announcement of the company’s annual audited results. 

	  	
NOTE:
The Company shall have the full authority to, terminate, amend or cancel the plan as
described above in its’ sole discretion provided that such changes shall not be
retroactive prior to the effective date of the change(s) or cancellation.  

INITIAL  /s/ PHR     EDEXHIBIT 10.18  

EMPLOYMENT AGREEMENT 

THIS
AGREEMENT made to have effect the 3rd day of September, 2003. 

BETWEEN: 

	  	
MDSI
MOBILE DATA SOLUTIONS INC., a corporation duly 

incorporated under the federal laws of Canada and having its offices 

at 10271 Shellbridge Way, Richmond, B.C. V6X 2W8 

(the “Company”)

AND: 

	  	
Glenn Kumoi, a businessman, residing at: 480 Craigmohr Drive, 

West Vancouver, BC  V7S 1W6

(the “Executive”)
 

	  	
WHEREAS: 

	A.	
The Company has employed the Executive on a continuous basis since
October 1,                1996 and the Executive currently serves the Company in his
capacity as the Vice                President, Chief Legal Officer and Corporate
Secretary.  

	B.	
The Company wishes to continue employing the Executive and the
Executive is                willing to accept such continued employment upon the terms
and conditions set                forth in this Agreement; and  

	C.	
The Company and the Executive wish to record certain matters of
mutual interest                in connection with the Executives’ employment by the
Company.  

	 	
NOW
THEREFORE in consideration of the premises and the mutual covenants and agreements herein
set forth the parties hereto mutually covenant and agree as follows:  

	1.  	  	EMPLOYMENT  

	1.1  	  	The
Company hereby employs the Executive to be the Vice President Chief Legal Officer and
Corporate Secretary of the Company and the Executive hereby accepts such employment. The
Executive shall report to the President and Chief Executive Officer of the Company and
shall perform all duties and have all authority incident to the position of Vice
President, Chief Legal Officer and Corporate Secretary of the Company, and such
additional duties as he may from  time to time be  reasonably required
to perform, and  

INITIAL  /s/ED      

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such additional authority as he may from time to time be given, by the
President and Chief Executive Officer.  

	1.2  	  	The
Executive shall perform his duties out of the Richmond office of the Company or out of
such other office in the lower mainland area of British Columbia, which the Company shall
establish and designate as its Vancouver head office. The Executive’s duties may
involve extensive domestic and international travel.  

	2.  	  	EXCLUSIVE
SERVICE  

	2.1  	  	Except
as expressly provided the Executive shall, during his employment with the Company, devote
his entire attention on a full time basis to the business of the Company. Provided he
obtains the prior written approval of the President and Chief Executive Officer the
Executive may, during his employment with the Company undertake work as a director or
consultant to any other company, firm or individual that is not in competition with the
Company.  

	3.  	  	SALARY
AND BONUSES  

	3.1  	  	The
Company shall pay the Executive an annual base salary (“Base Salary”) of
Canadian $190,000.00 gross payable semi-monthly which shall be reviewed from time to time
at the sole discretion of the Company.  

	3.2  	  	An
annual incentive plan that will provide additional earning potential based upon the
achievement of predetermined objectives and corporate earnings. Details are outlined in
the Executive Management Bonus Program (Schedule A).  

	3.3  	  	All
payment of salary shall be subject to deduction of all applicable Federal and Provincial
income tax, unemployment insurance, Canada Pension deductions and other deductions
required at law or made pursuant to this Agreement  

	4.  	  	EXPENSES  

	4.1  	  	The
Company shall provide to the Executive the following expenses, reimbursements, equipment
and allowances: 

	  	(i)  	  	reimbursement
for all reasonable and necessary expenses incurred by the                     Executive
in the conduct of the business of the Company in accordance with
                    travel and expense policies established by the Company from time to
time; and  

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	  	(ii)  	  	appropriate
hardware/software, including cell phone, pager, and a portable
                    computer selected by the Company to permit the Executive to operate
effectively                     while away from the office or at home and reimbursement
of associated costs.  

	5.  	  	STOCK
OPTIONS  

	5.1  	  	The
Executive shall be entitled to participate in the Stock Option Plan as established by the
Company and amended from time to time. A copy of that Plan has been supplied to the
Executive who acknowledges its receipt.  

	5.2  	  	All
stock options granted to the Executive pursuant to this Agreement shall automatically
vest in the event of a Change of Control (as defined in the Company’s Stock Option
Plan) except for those stock options issued to the Executive on or after March 1, 2000
which stock option certificate provides that notwithstanding the provisions in the
current Company’s Stock Option Plan regarding accelerated vesting in the event of a
Change of Control (as defined in the Plan) or Terminating Event (as defined in the Plan),
in the event a Change of Control or Terminating Event occurs only those Stock Options
that would have ordinarily vested to the Executive over the next twelve months will
immediately vest, and the balance of the unvested options will only be accelerated if an
entity causing an Change of Control or Terminating Event does not establish a successor
stock option plan or similar program that rolls over and preserves the balance of the
unvested Options granted to the Executive.  

	5.3  	  	Stock
options, which have vested, may be exercised at any time up to five years from the date
of grant. Except as provided for in section 12.4, those stock options which have not
vested by the date of termination of the Executive’s employment with the Company
shall expire automatically as of that date. Upon termination of his employment by
resignation, the Executive shall have a period of thirty (30) days in which to exercise
vested share purchase options, failing which those options shall expire automatically. In
the event of termination for cause all stock options shall be cancelled and expire
coincident with such termination.  

	6.  	  	VACATION  

	6.1  	  	The
Executive shall be entitled to four (4) weeks (20 working days) vacation per annum to be
taken at such time(s) as the Executive and the Company may mutually and reasonably agree
upon. The Executive is expected to take his entire entitlement during the calendar year.
However, in the event the entire entitlement cannot be taken during the calendar year,
the executive may carry forward a maximum of five (5) days vacation from the current year
entitlement. The Executive must bring the matter to the attention of the President & CEO
who must approve any such carry forward vacation.  

INITIAL  /s/ED      

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	7.  	  	BENEFITS  

	7.1  	  	The
Executive shall receive those benefits (including medical, dental, extended health
insurance, short and long term disability, life insurance and family assistance) that are
provided to Canadian based employees in the Company Employee Benefit Program (the “Program”)
in effect upon the Executive’s employment date as that Program may be modified from
time to time. A copy of the Program has been supplied to the Executive who acknowledges
its receipt.  

	8.  	  	SICK
LEAVE  

	8.1  	  	If
the Executive shall, at any time, by reason of illness or mental or physical disability,
be incapacitated from carrying out the terms of this Agreement, he shall furnish the
Company with medical evidence to prove such incapacity and the cause thereof, and shall
receive his full salary and benefits for a period of 180 days or until long term
disability begins whichever period is shorter.  

	9.  	  	NON-DISCLOSURE
OF CONFIDENTIAL INFORMATION, TRADE SECRETS AND WORK PRODUCT  

	9.1  	  	The
Executive acknowledges that as Vice President, Chief Legal Officer and Corporate
Secretary of the Company, he holds a fiduciary position and owes to the Company a duty of
utmost loyalty and good faith. The Executive agrees to serve the Company well and
faithfully and to the best of his ability, and to use his best efforts to promote its
interests.  

	9.2  	  	In
this Agreement the following terms shall have the meanings described below: 

	  	(a)  	  	“Confidential
Information” means any information concerning the                Company’s
scientific, technological, financial and business interests which                is not
generally available to third parties and is identified or is reasonably
               capable of being identified as confidential and proprietary information of
the                Company. Confidential Information shall include but not be limited to:
(a)                production processes and materials; customer lists and requirements;
business                plans and strategies; and other materials or information relating
to the                business of the Company; (b) computer software in source and
executable code,                and related documentation in any media including all
modifications, enhancements                and versions and all options available for
such software; and (c) information                defined herein as a Trade Secret but
which is determined by a court of competent                jurisdiction not to rise to
the level of a trade secret under applicable law.  

	  	(b) 	  	“Trade
Secret” means any information which is identified or is           reasonably  

INITIAL  /s/ED      

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-5- 

	  	
capable
of being  identified as confidential and proprietary information of the Company which:
(a) has economic value, actual or potential to the Company because it is not generally
known to other persons who might obtain economic value from its disclosure or use; or (b)
the Company has made reasonable efforts to keep secret or out of the public domain.  

	  	(c)  	  	“Work
Product” means any work, research, design ideas or                development in
whatever medium which is produced, created or developed by the                Executive
during the term of this Agreement pertinent to the Company’s
               scientific, technological, financial or business interests and may include
               Confidential Information and Trade Secrets.  

	9.3  	  	The
Executive agrees that both during and after the term of this Agreement he shall keep
confidential and shall not directly or indirectly divulge or disclose to anyone nor use
or otherwise appropriate Confidential Information, Trade Secrets or Work Product, except
as required in the performance of his duties or as required by law.  

	9.4  	  	The
Executive agrees that in the course of his employment with the Company he will not bring
to or use at the Company the confidential materials of a former employer or third party,
which are not generally available to the public.  

	10.  	  	OWNERSHIP
AND USE OF WORK PRODUCTS  

	10.1  	  	The
Executive agrees that any Work Product shall be the sole and exclusive property of the
Company. The Company is and shall be the sole owner of all copyrights, patents and other
intellectual property rights in the Work Product.  

	10.2  	  	The
Executive agrees to assign to the Company any rights that he may have or acquire in the
Work Product and hereby waives all claims to any right, title or interest in the Work
Product, including any moral rights which he may have or acquire in the Work Product or
to its use, including the right to restrain or claim damages for any distortion,
mutilation or other modification of the Work Product or any part thereof whatsoever, or
to restrain use or reproduction of the Work Product in any context, or in connection with
any product or service. At any and all times during the term of this Agreement the
Executive shall upon the request of the Company promptly perform all such acts and
execute and deliver all such documents that may be necessary to vest in the Company the
entire right, title and interest in and to any Work Product.  

	11.  	  	CONFLICT
OF INTEREST AND NON-COMPETITION CONFLICT OF INTEREST AND NON-COMPETITION  

INITIAL  /s/ED      

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	11.1  	  	The
Executive agrees that the Company has a legitimate interest in ensuring that Confidential
Information, Trade Secrets and Work Product will not fall into the hands of its
competition nor be used by the Executive for any purpose other than the execution of his
duties as an Executive of the Company. Accordingly it is specifically agreed that:  

	  	(a)  	  	During
the term of this Agreement the Executive shall not compete with the
                    Company. Without limiting the generality of this provision, the
Executive shall                     not during the term of this Agreement, for his own
account or for the account of                     a third party, directly or indirectly
develop, design, manufacture, sell or                     solicit for sale or lease
products including computer programs, codes and                     documentation similar
in function to those developed, designed, manufactured or                     sold by the
Company;  

	  	(b)  	  	The
Executive shall not for a period of eighteen (18) months following the
                    termination of his employment, whether for his own account or for the
account of                     a third party, directly or indirectly, develop, design,
manufacture, sell or                     solicit for sale products which are the same or
similar in concept or function                     to products developed, designed,
manufactured or marketed by the Company during                     the period of two (2)
years immediately preceding the date of termination of the                     Executive’s
employment;  

	  	(c)  	  	For
a period of eighteen (18) months following the termination of his
                    employment, the Executive shall not, whether for his own account or
for the                     account of a third party, directly or indirectly, sell or
solicit for sale                     products which are the same or similar in concept or
function to those                     developed, designed, manufactured or marketed by
the Company to any customer or                     potential customer of the Company. For
purposes of this section                     “customer” means any person from
whom the Company has received an                     order during the two (2) years
immediately preceding the date of termination of                     the Executive’s
employment. “Potential customer” means those                     persons who
have contacted the Company or have been contacted the Company with a
                    view to obtaining an order during the two (2) year period immediately
preceding                     the date of terminating the Executive’s employment.  

	  	(d)  	  	For
a period of eighteen (18) months following the date of termination of his
                    employment, the Executive shall not, whether for his own account or
for the                     account of a third party, directly or indirectly, offer or
cause to be offered                     to any employee of the Company a new position or
employment with any other                     person or company, nor shall the Executive
solicit the participation of any                     Employee of the Company in any
business, partnership, association or enterprise.  

	11.2  	  	The
Executive acknowledges and agrees that there can be no geographic limit to his covenant
not to compete due to the nature of his employment and the extent of the business of the
Company, the market for the Company products and the technologies with which  the

INITIAL  /s/ED      

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Company is involved. 

	11.3  	  	The
parties to this agreement recognize that a breach by the Executive of any of the
covenants contained in Sections 9, 10 and 11 of this Agreement would constitute an
interference with the ongoing business of the Company and cause irreparable harm to the
Company which could not be adequately compensated for by monetary damages. The Executive
agrees that in the event of a breach by him of any of the covenants contained in Sections
9, 10 and 11 of this Agreement, he shall and hereby does consent to an injunction being
issued against him restraining him from any further breach of the said covenants. The
provisions of this section shall not be construed so as to affect or impair any other
remedies, which the Company may have in the event of such breach, including but not
limited to an action for damages.  

	12.  	  	TERMINATION
OF EMPLOYMENT  

	12.1  	  	Without
prejudice to any remedy the Company may have against the Executive for any breach or
non-performance of this Agreement, the Executive’s employment may be terminated at
any time effective immediately by the Company without previous notice and without payment
in lieu of notice for cause which, for the purposes of this agreement shall include but
not be limited to:  

	  	(i)  	  	dishonesty
in the course of the discharge of his duties as an employee;  

	  	(ii)  	  	gross
negligence or repetitive negligence committed without regard to corrective
                    direction in the course of the discharge of his duties as an
employee;  

	  	(iii)  	  	conviction
of any criminal offence other than an offence which, in the
                    reasonable opinion of the Company does not affect the reputation of
the Company                     or the Executive’s position as a representative of
the Company;  

	  	(iv)  	  	bankruptcy
or insolvency of the Executive;  

	  	(v) 	  	excessive
and unreasonable absences from his duties for any reason other than           authorized
vacation or sick leave.  

	  	(vi) 	  	material
breaches of the Company’s policies and procedures.  

	12.2 	  	
The Executive shall be entitled to terminate his employment with the Company, at will, at
any time by giving notice in writing to the Company of not less than twelve (12) weeks
unless otherwise agreed to in writing by the parties. In the event the Executive
terminates his employment with the Company, he shall be entitled to receive an amount
equal to his total accumulated vacation pay. 

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	12.3 	  	
The Company may terminate the employment of the Executive at will and without cause at any
time, including following a Change of Control, upon payment to the Executive of his Base
Salary owing up to the date of termination and a severance payment as outlined in
Paragraph 12.4 below and upon payment to the Executive of all compensation owing up to the
date of termination. 

	12.4  	  	The
amount of severance provided under paragraph 12.3 shall be calculated as follows: 

	  	
An
amount equal to eighteen (18) months basic salary. The severance payment shall be made
either in a lump sum within five (5) working days from the date of termination, or at the
Executive’s option, to be paid in intervals as mutually agreed to in writing by the
Executive and the Company within five (5) working days from the date of termination.  

	  	
The
Company shall maintain the Executive and his dependents on the Company Employee Benefit
Program during the currency of the eighteen (18) month severance period from the date of
termination. Such benefits shall be discontinued should the Executive be eligible to
participate in a benefit program sponsored by a subsequent employer. The Executive
acknowledges and agrees that he shall not be entitled to any other severance or
termination package in connection with his employment whatsoever. In the event the
Executive is terminated in accordance with this Section 12.3, the Company shall also pay
to him an amount equal to his total accumulated vacation. All stock options granted to
the Executive shall continue to vest during the eighteen (18) month period defined in
this section 12.4 and the Executive shall have a period of sixty (60) days from the
expiration of the eighteen month period in which to exercise vested share purchase
options.  

	12.5  	  	In
the event that at the date of termination of employment the Executive has earned but not
been paid portions of any Incentive, the Company shall, after termination continue to pay
out, on a pro ratio basis to the date of termination, any bonus owing at the applicable
time in accordance with any Incentive Program.  

	12.6  	  	The
Executive will not be required to mitigate the amount of any payment provided under this
Section 12 or any damages resulting from a failure of the Company to make any such
payment by seeking other employment, or otherwise, nor shall the amount of any payment
under this Section 12 be reduced by any compensation earned by the Executive from
employment or self employment.  

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	13.  	  	CHANGE
OF CONTROL OF THE COMPANY  

	13.1  	  	In
this section the term "Change of Control" shall mean: 

	  	(a)  	  	the
sale of greater than 50% of the issued and outstanding common shares in the
                    capital of the Company pursuant to a “takeover bid” (as
defined in the                     British Columbia Securities Act);  

	  	(b)  	  	the
disclosure that any person (a “Control Person”) directly or
                    indirectly, beneficially or legally owns, or exercises control or
direction                     over, greater than 50% of the issued and outstanding shares
in the capital of                     the Company, in any insider trading report,
information circular, prospectus,                     offering memorandum, material
change report or other disclosure document of the                     Company or any such
Control Person, filed or required to be filed with the                     British
Columbia Securities Commission, the TSE or any other securities
                    regulatory authority or stock exchange;  

	  	(c)  	  	the
sale or disposition of all or substantially all of the assets of the Company
                    to a non-affiliated party;  

	  	(d)  	  	the
merger, amalgamation or consolidation of the Company with or into any other
                    non-affiliated corporation; or  

	  	(e)  	  	the
appointment of a liquidator, receiver, receiver-manager, or trustee in
                    bankruptcy of the Company, or the making of any assignment or
proposal to or for                     the benefit of the creditors of the Company.  

	13.2  	  	In
the event that the Company undergoes a Change of Control and if the employment of the
Executive is terminated by the Company or terminated by the Executive for Good Reason
within 24 months of a Change of Control the Executive shall be entitled to receive the
severance package in accordance with the provisions of Sections 12.3 and 12.4 above.  

	13.3  	  	In
the event of a take-over or Change of Control of the Company, the Executive may, for a
period of sixty (60) days from the date of such take-over or Change of Control, elect, in
the Executive’s complete and sole discretion, to terminate his employment in
accordance with the notice period set out in paragraph 12.2 and upon such termination,
shall be entitled to receive the severance package in accordance with the provisions of
Sections 12.3 and 12.4 above in full satisfaction of all claims that the Executive may
have against the Company  

	13.4  	  	The
Executive will not be required to mitigate the amount of any payment or benefit provided
for under this Section 13 or any damages resulting from a failure of the Company to make
any such payment or to provide such benefit, by seeking other  

INITIAL  /s/ED      

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employment,
or otherwise, nor shall the amount of any payment or benefit provided for under this
Section 13 be reduced by any compensation earned by the Executive from employment or self
employment. 

	13.5  	  	For
the purposes of this Agreement "Good Reason" means: 

	  	a)  	  	Without
the express consent of the Executive, the assignment to the Executive of
                    duties materially inconsistent with his positions, duties and
responsibilities                     with the Company immediately prior to the date
hereof or any removal of the                     Executive from, or and failure to
re-elect the Executive to, material positions,                     duties and
responsibilities with the Company, except in connection with the
                    termination of the Executive’s employment for cause, disability
or                     retirement or as a result of the Executive’s death or
resignation by the                     Executive other than for Good Reason. For greater
certainty, the Executive shall                     be deemed to have consented to the
assignment of new duties if the Executive                     performed such duties for a
period of 60 days and the Executive does not advise                     the Company that
such duties constitute grounds for Good Reason;  

	  	b)  	  	A
reduction by the Company in the Executive’s salary as in effect on the
                    date hereof or as the same may be increased from time to time;  

	  	c)  	  	The
failure by the Company to continue in effect any incentive or compensation
                    plan, or any pension, life insurance, health and accident or
disability plan in                     which the Executive is participating at the date
hereof, (or plans providing the                     Executive with substantially similar
benefits) unless such plans have been                     replaced by new plans providing
the Executive with benefits that are as good as                     or better than the
benefits provided in such plans, or the taking of any action                     by the
Company which would adversely affect the Executive’s participation
                    in or materially reduce the Executive’s benefits under any of
such plans or                     deprive the Executive of any material fringe benefit
enjoyed by him at the date                     hereof;  

	  	d)  	  	The
requirement that the Executive be based anywhere other than the
                    Company’s principal executive offices except for required travel
on the                     Company’s business to an extent substantially consistent
with the                     Executive’s present employment or travel obligations,
or in the event the                     Executive consents to any such relocation, the
failure by the Company to pay (or                     reimburse the Executive for) all
reasonable moving expenses incurred by the                     Executive or to indemnify
the Executive against any excess in (A) the cost of a                     principal
residence at the time of the relocation, over (B) the amount realized
                    by the Executive upon the sale of his principal residence at the time
of the                     relocation or:  

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	  	e) 	  	Any
reason which would be considered to amount to constructive dismissal by a           court
of competent jurisdiction.  

	14.  	  	RESIGNATION
AND INDEMNITY  

	14.1  	  	Upon
termination of this Agreement, the Executive will tender to the Company, and their
associated companies, his resignation as an officer and if applicable, his resignation as
a director.  

	14.2  	  	Subject
to the Canada Business Corporations Act, as amended from time to time (the “Act”),
the Company hereby indemnifies the Executive, his heirs, executors administrators and
personal representatives (collectively, the “Indemnitees”) and save the
Indemnitees harmless against all costs, charges and expenses actually and reasonably
incurred by the Indemnities in law, in equity or under any statute or regulation, in
connection with any civil, criminal, or administrative claim, action, proceeding or
investigation to which the Indemnitees are made a party or in which they are otherwise
involved as a witness or other participant by reason of the Executive being or having
been a Director or officer of the Company or its affiliated or associated companies,
including any action brought by the Company or companies, if:  

	  	(i)  	  	the
Executive acted honestly and in good faith with a view to the best interests
                    of the Company or companies; and  

	  	(ii)  	  	in
the case of a criminal or administrative claim, action, proceeding or
                    investigation, the Executive had reasonable grounds for believing
that his                     conduct was lawful.  

	14.3  	  	Without
limiting the generality of the foregoing of Section 14.2 the costs, charges and expenses
against which the Company will indemnify the Indemnitees include:  

	  	(i)  	  	any
and all fees, costs and expenses actually and reasonably incurred by the
                    Indemnitees in investigating, preparing for, defending against,
providing                     evidence in, producing documents or taking any other action
in connection with                     any commenced or threatened action, proceeding or
investigation, including                     reasonable legal fees and disbursements,
travel, and lodging costs;  

	  	(ii)  	  	any
amounts reasonably paid in settlement of any action, proceeding or
                    investigation;  

	  	(iii)  	  	any
amounts paid to satisfy a judgement or penalty, including interest and
                    costs; and  

	  	(iv)  	  	all
costs charges and expenses reasonably incurred by the Indemnitees in
                    establishing their right to be indemnified pursuant to this
Agreement.  

INITIAL  /s/ED      

GK       

-12- 

	14.4  	  	If
the Indemnitees or any one of them are required to include in their income, or in the
income of the estate of the Executive, any payment made under this Section 13 for the
purpose of determining income tax payable by the Indemnitees or any of them or the
estate, the Company shall pay an amount by way of indemnity that will fully indemnify the
Indemnitees or estate for the amount of all liabilities described in Section 14.2 and
Section 14.3 and all income taxes payable as a result of the receipt of the indemnity
payment.  

	14.5  	  	Upon
receipt of a written request by the Indemnitees for indemnification under this Agreement
(an “Indemnification Notice”), the Company will forthwith apply to the Supreme
Court of British Columbia for approval of the requested indemnification, will diligently
proceed to obtain such approval and will take all other steps necessary to provide the
requested indemnification as soon as practicable following receipt of the Indemnification
Notice.  

	14.6  	  	Any
failure by the Executive in his capacity as a director or officer of the Company to
comply with the provisions of the Act or the Memorandum, Articles or Bylaws of the
Company will not invalidate any indemnity to which he is entitled under this Agreement.  

	15.  	  	RETURN
OF PROPERTY  

	15.1  	  	In
the event of termination of this Agreement, the Company agrees to pay the Executive all
arrears of compensation, and all out of pocket expenses owing, up to and including the
effective date of termination, upon receipt from the Executive of (and the Executive
agrees to deliver to the Company);  

	  	(i) 	  	any
property of the Company which may be in the possession or control of the
          Executive; and  

	  	(ii) 	  	the
repayment of any sums owed by the Executive to the Company.  

	16.  	  	SURVIVAL  

	16.1  	  	Notwithstanding
the termination of this Agreement for any reason whatsoever the provisions of Sections 9,
10, 11 and 14 hereof and any other provisions of this Agreement necessary to give
efficacy thereto shall continue in full force and effect following such termination.  

INITIAL  /s/ED      

GK       

-13- 

	17.  	  	NOTICE  

	17.1  	  	Any
notice or other communication (each a “Communication”) to be given in
connection with this Agreement shall be given in writing and may be given by personal
delivery, by registered mail or by telecopier, addressed as follows:  

	TO:	
MDSI Mobile Data Solutions Inc.

10271 Shellbridge Way

Richmond, B.C. V6X 2W8

Attn:      President

Phone:   604-207-6000

Fax:        604-207-6062

 

	AND TO:	
Glenn Kumoi

480 Craigmohr Drive

West Vancouver, BC  V7S 1W6

Phone:   604-926-3964

Fax:        604-

 

	  	
or
at such other address or telecopier number as shall have been designated by Communication
by either party to the other. Any Communication shall be conclusively deemed to be
received, if given by personal delivery, on the date and at the time of actual delivery
thereof and, if given by registered mail, on the fifth day following the date of mailing,
if given by telecopier, on the business day following the transmittal thereof. If the
party giving any Communication knows or ought reasonably to know of any actual or
threatened interruptions of the mails, such Communication shall not be sent by mail but
shall be given by personal delivery or telecopier. 

	18.  	  	ENTIRE
AGREEMENT  

	18.1  	  	Any
other previous agreements, written or oral, between the parties hereto relating to the
employment of the Executive by the Company are hereby terminated and cancelled and each
of the parties hereto hereby releases and forever discharges the other party hereto of
and from all manner of actions, causes and demands whatsoever under or in respect of any
such agreement. This Agreement, together with the Plans and Programmes which are by
reference expressly incorporated into it, constitutes and expresses the whole agreement
of the parties hereto with reference to the employment of the Executive by the Company,
and with reference to any of the matters or things herein provided for, or herein before
discussed or mentioned with reference to such employment; all promises, representations,
and understandings relative thereto being merged herein.  

INITIAL  /s/ED      

GK       

-14- 

	19.  	  	AMENDMENTS
AND WAIVERS  

	19.1  	  	No
amendment to this Agreement shall be valid or binding unless set forth in writing and
duly executed by both of the parties hereto. No waiver or any breach of any by the party
purporting to give the same and, unless otherwise provided in the written and signed
waiver, shall be limited to the specific breach waived.  

	20.  	  	BENEFITS
OF AGREEMENT  

	20.1  	  	The
provisions of this Agreement shall enure to the benefit of and be binding upon the legal
representatives of the Executive and the successors and assigns of the Company
respectively.  

	21.  	  	SEVERABILITY  

	21.1  	  	If
any provision of this Agreement is deemed to be void or unenforceable, in whole or in
part, it shall not be deemed to affect or impair the validity or any other provision
hereby declared and agreed to be severable from each and every other section, subsection
or provision hereof and to constitute separate and distinct covenants. The Executive
hereby agrees that all restrictions herein are reasonable and valid and all defences to
the strict enforcement thereof by the Company are hereby waived by the Executive.  

	22.  	  	GOVERNING
LAW  

	22.1  	  	This
Agreement shall be governed by and construed in accordance with the laws of the Province
of British Columbia. The Company and the Executive hereby irrevocably attorn to the
jurisdiction of the courts of the Province of British Columbia, exclusively.  

	23.  	  	COPY
OF AGREEMENT  

	23.1  	  	The
Executive hereby acknowledges receipt of a copy of this Agreement duly signed by the
Company. 

INITIAL  /s/ED      

GK       

-15- 

        IN
WITNESS WHEREOF the parties have executed this Agreement as of the day and year first
above written: 

	
SIGNED, SEALED AND DELIVERED by

Glenn Kumoi

in the presence of:

/s/ illegible

___________________________________

Witness

9511 Lasko St. Rich. B.C.

___________________________________

Address

V.P. Human Resources

___________________________________

Occupation

	
)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

	

/s/ Glenn Kumoi

_____________________________________

           
           
Glenn Kumoi

MDSI MOBILE DATA SOLUTIONS INC. 

Per:  /s/ Erik Dysthe

     _________________________________

        Authorized Signatory

INITIAL  /s/ ED       

-16- 

Schedule “A” 

Executive Management Incentive Compensation Program  

This program has been designed to
provide an incentive for the achievement of the quarterly Corporate Earnings per share
targets as established by the Board of Directors, and your overall annual personal
performance. Your performance will be measured against the achievement of the goals and
objectives as noted in the strategic renewal document as well as any other individual
objectives. 

The Plan contains the following two
target components as set by the Board of Directors and a personal performance incentive; 

	  	•  	  	Target
incentive based on quarterly EPS (plus$0.01) results in an award of 6% of annual base
salary/quarter 

	  	•  	  	Stretch
incentive based on exceeding annual EPS results up to 40% of annual base salary 

	  	•  	  	Personal
performance incentive up to 16% of annual base salary 

The Corporate EPS targets (plus$0.01)
in each quarter are either achieved or not with the achievement of the target resulting in
the payment of the incentive award (i.e. 6% per quarter). The quarter’s results must
be achieved including the cost of the company’s incentive plan (i.e. all employees).
If the full amount of the quarterly incentive cannot be funded within the EPS requirement
then a prorated amount will be paid with the available funds. The unpaid amount will be
carried forward to year-end. This would occur similarly in subsequent quarters. At
year-end if, after paying the final quarter’s incentive, there are funds available
(i.e. within the yearly EPS requirement) than such funds would be used to pay (prorated if
necessary) the unpaid incentive balance. Any year-end unpaid balance will not be carried
forward to subsequent years. These quarterly incentives shall be paid within 30 days of
the company’s quarterly results being announced. In the event quarterly EPS in not
achieved 50% of any missed quarters incentive can be recovered if the year’s EPS
target is achieved. Depending on the amount of available funds this payment may need to be
governed by the pro-ration as described. Any resulting incentive from recovered quarters
or as a result of pro-ration will be paid along with any other incentive achieved for the
year. 

Personal performance incentive is 16%
of annual base salary to be calculated and paid annually within 30 days of the
announcement of the company’s annual audited results. Personal performance incentive
will only be paid if the year-end EPS target is achieved, can be prorated based on
available funds and if prorating is required personal performance incentive will take
priority over EPS incentive. Personal performance will be based on a 1-10 rating scale as
follows: 

1 = intolerable 2 = less than
tolerable 3 = barely tolerable 4 = less than satisfactory 5 = satisfactory 6 = more than
satisfactory 7 = exceeding 8 = significantly exceeding 9 = excelling10 = exceptional. A
rating of 5 would result in an award of 8%. 

The calculation of % achievement of
the stretch incentive (0-40% of base) will be pro rated to the % achievement of the
stretch target (to a maximum incentive of 40%). Payment of the stretch incentive will be
within 30 days of the announcement of the company’s annual audited results. 

	  	
NOTE:
The Company shall have the full authority to, terminate, amend or cancel the plan as
described above in its’ sole discretion provided that such changes shall not be
retroactive prior to the effective date of the change(s) or cancellation.  

INITIAL  /s/ ED

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