Document:

Exhibit 10(A)(4)

                          AMENDED EMPLOYMENT AGREEMENT
                          ----------------------------

         THIS AMENDED EMPLOYMENT AGREEMENT  ("Agreement")  between SERVOTRONICS,
INC.  ("Employer")  and NICHOLAS D. TRBOVICH,  JR.  ("Employee" ), dated July 1,
2005,  hereby amends and  supersedes  the parties'  Agreement  dated December 8,
2004.

                               W I T N E S S E T H
                               -------------------

         WHEREAS,  the Board of Directors  of Employer  believes it to be in the
best  interests  of  Employer  and its  shareholders  to assure  the  Employee's
continued service to Employer, and Employee agrees to continue in the service of
Employer under the terms set forth below;

         NOW,  THEREFORE,  in  consideration  of  his  continued  employment  by
Employer and other good and valuable  consideration  and intending to be legally
bound,  Employee  hereby  agrees to be employed by Employer,  upon the following
terms and conditions:

         1.   Employer hereby employs  Employee and Employee hereby accepts such
employment for a multi-year term extending to and including July 1, 2010, on the
terms  and  conditions  hereinafter  set  forth.  When one year  remains  on the
original or any extended term of this Agreement, the term of this Agreement will
be  automatically  extended for one additional  year beyond its then  expiration
date unless either party  previously  has notified the other in writing that the
term will not be  extended  beyond that  expiration  date.  If  Employer  elects
pursuant to this  paragraph  not to extend  this  Agreement,  Employee  shall be
entitled  to a  severance  payment in an amount  equivalent  to nine (9) months'
salary  and  benefits  at the rate in  effect at the time of  termination.  Such
amount shall be paid within 30 days  following  the date of  expiration  of this
Agreement under this paragraph.

         2.   Employee  shall perform the duties and functions of Vice President
of  Employer,  which  duties and  functions  will be  similar  to and  generally
consistent  with those  Employee is performing  for Employer at the date of this
Agreement.

         3.   Subject to the  provisions  of  paragraphs 5, 6, 12 and 16 of this
Agreement, Employer shall pay and Employee shall accept as full compensation for
all services rendered hereunder a minimum annual salary of $182,000.00,  or such
greater  amount  as may be  hereafter  fixed  by the  Board,  payable  in  equal
installments every two weeks.

         4.   Employer  will  reimburse  Employee  for all  reasonable  expenses
incurred in the performance of his services hereunder.

         5.   In  addition  to  the  compensation  provided  to  Employee  under
paragraph 3 of this Agreement,  Employee shall be entitled to participate in all
employee  benefit plans,  including  without  limitation  stock options,  profit
sharing,  pension,  bonus,  participation,  extra  compensation,  disability  or
deferred  compensation plans, group insurance or other benefits or arrangements,
to at least the same extent as do Employer's  other senior  executive  officers,
except as to any plan as to which Employee has specifically consented in writing
to his  exclusion  therefrom.  In its  discretion  the Board may grant  Employee
benefits in addition to or greater than those  enumerated above and in paragraph
16 of this Agreement.

<PAGE>

         6.   Employment  under  this  Agreement  shall  terminate  prior to the
expiration of its term or any extended  term upon the death or total  disability
of Employee.

              "Total  disability"  is  Employee's   inability  to  substantially
perform his duties and obligations under this Agreement for a consecutive period
of four months by reason of illness or physical or mental impairment.  If either
party asserts that total  disability  has occurred and the other party  disputes
that  assertion,  Employer and Employee  shall submit the dispute (for a written
decision as described below) to a physician  jointly selected by them who (i) is
licensed to practice in New York, (ii) has  professional  experience in the area
or branch of medicine related to the cause of the claimed disability,  (iii) has
rendered no professional services to or on behalf of either party within the two
prior years and (iv) is not a shareholder,  officer, director or employee of, or
in a business  relationship with,  Employer or Employee.  Employer shall pay all
expenses  incurred by both parties to resolve the dispute in this manner.  After
making such  examinations and  investigations  as he shall deem necessary,  that
physician shall make his decision in writing, and the decision shall be given to
both Employer and Employee in accordance  with paragraph 19. Neither party shall
contest the physician's  decision,  which shall be final and conclusive,  except
for fraud. If the physician decides that total disability has not occurred, this
Agreement and Employee's  employment  hereunder  shall continue as if no dispute
had occurred.

              Termination  of  employment  shall be  effective  upon  Employee's
death.  Termination of Employment for total  disability  shall be effective five
business  days after either party has given  written  notice to the other of the
existence of total  disability  unless,  before the  expiration of that five-day
period,  the party  receiving  notice shall give the other party written  notice
that he or it  disputes  the  existence  of total  disability;  if the notice of
dispute is so given,  termination  of  employment  will occur when the physician
gives notice to both parties of his decision in accordance with paragraph 19.

              In the event of termination of employment due to Employee's  total
disability  or death,  Employer  shall pay to the  Employee,  or in the event of
Employee's  death,  to  Employee's  designated  beneficiary,  or if none, to his
estate,  compensation  during the remainder of the term or extended term of this
Agreement  at the  rate  of  50%  of the  total  compensation  in  effect  under
paragraphs 3 and 5 of this Agreement  immediately prior to the termination.  The
foregoing  payment shall be in lieu of the 9-month severance payment required by
reason of termination of employment pursuant to paragraph 1 of this Agreement.

         7.   Nothing  contained in this Agreement shall deprive Employee of, or
limit his entitlement to, any rights to pensions or other  retirement  payments,
to stock options or other rights with respect to Employer's securities or to any
other benefits granted or to be granted to Employee by Employer,  whether or not
such payments,  options,  rights or benefits are referred to in this  Agreement,
except that the  disability  payment  provided in paragraph 6 and the  severance
payment  in  paragraph  13 shall  be in lieu of the  9-month  severance  payment
provided in paragraph 1.

         8.   Employee agrees that from and after the date of this Agreement and
during the term hereof he will not,  unless  acting as an officer or employee of
Employer or with the prior written consent of Employer,  directly or indirectly,
engage or  participate  in, or own,  manage,  operate,  join or  control,  or be
connected  as an officer,  director,  employee,  partner,  investor or otherwise
with, any business

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<PAGE>

manufacturing  or selling  products or  services  similar to or  competing  with
products  or services  manufactured  or sold by  Employer  or  otherwise  engage
directly or indirectly in competition with Employer.  Employee acknowledges that
the remedy at law for any breach by him of the foregoing  will be inadequate and
that Employer shall be entitled to injunctive relief.  Nothing herein contained,
however, shall prevent Employee from purchasing for investment 3% or less of any
outstanding  class of securities of any company whose securities are held by the
general public.

         9.   In consideration of past and future services performed by Employee
on behalf of Employer,  Employer agrees that it shall have no right to terminate
this Agreement,  or to terminate any obligation of Employer hereunder,  prior to
the end of the term or any extension hereof,  except for the willful malfeasance
of Employee in the  performance of his duties  hereunder.  Any such  termination
shall be determined by Employer's  Board of Directors at a meeting  validly held
and conducted as provided by Employer's  By-laws and applicable law and shall be
subject to Employee's rights set forth in paragraph 5. Employee will be entitled
to be heard by the Board of  Directors  prior to any  determination  under  this
paragraph, to be advised during the hearing by an attorney of his choice and, if
he chooses,  to have his attorney be heard by the Board of  Directors;  Employer
will pay the fees and disbursements of Employee's attorney for services rendered
in this dispute if the Employee shall be the prevailing party. A decision by the
Board of Directors  hereunder is not final, but is subject to arbitration  under
paragraph 18.

         10.  Employee may  terminate  his  employment  hereunder for any one or
more of the following  reasons:  (A) a change in control of Employer (as defined
below), (B) a change in the  responsibilities,  titles or offices of Employee as
currently in effect, without the express written consent of Employee,  except in
connection  with  the  termination  of  Employee's  employment  for  disability,
retirement  or pursuant to  paragraph 8 above,  (C) a relocation  of  Employee's
office or  principal  place of work  without  his express  written  consent to a
location  more than 50 miles from 1110 Maple  Street,  P.O. Box 300,  Elma,  New
York,   except  for  required  travel  on  Employer's   business  to  an  extent
substantially  consistent with Employee's business travel practices as currently
in effect,  or (D) a failure by Employer to comply  with any  provision  of this
Agreement  which  has not been  cured  within  five  days  after  notice of such
noncompliance  has been given by  Employee  to  Employer.  For  purposes of this
Agreement, a "change in control of Employer" shall mean a change in control of a
nature  that would be  required  to be reported in response to Item 5.01 of Form
8-K  promulgated  under the  Securities  Exchange  Act of 1934,  as amended (the
"Exchange  Act"), or any similar  successor  provision;  provided that,  without
limitation, such a change in control shall be deemed to have occurred if (X) any
"person"  (as such term is used in Sections  13(d) and 14(d) of the Exchange Act
or any similar  successor  provision),  other than  Employee,  is or becomes the
"beneficial  owner"  (as  defined in Rule 13d-3  under the  Exchange  Act or any
similar successor provision),  directly or indirectly, of securities of Employer
representing  22% or  more of the  combined  voting  power  of  Employer's  then
outstanding  securities,  or (Y)  Employee,  while  living,  shall cease to be a
director of  Employer,  unless  Employee  shall have  voluntarily  resigned  his
position on the Board in writing or  consented  in writing to not be included in
the slate of nominees  for  director  proposed by the Board for  election at any
meeting of the shareholders of Employer at which directors are to be elected, or
(Z) if at any time more than  one-third  of the  members  of the Board  shall be
persons who shall have been elected by the shareholders of Employer or appointed
by the Board in  opposition  to  Employee's  recommendation  and without  having
received  the  affirmative  vote of  Employee  either as a  shareholder  or as a
Director.

                                        3
<PAGE>

         11.  Any  termination  of Employee's  employment  by Employee  shall be
communicated by written Notice of Termination to Employer.  For purposes of this
Agreement,  a "Notice of  Termination"  shall mean a notice which shall indicate
the specific  termination  provision or provisions in this Agreement relied upon
(although the failure to include in such notice any other termination  provision
shall not be deemed to be a waiver of such provision). No failure of Employee to
exercise his right to terminate this Agreement shall, by reason of lapse of time
or otherwise,  be deemed to constitute a waiver of such right;  and no Notice of
Termination in which  Employee  notifies  Employer that he is  terminating  this
Agreement  because of a breach of this  Agreement by Employer shall be deemed to
constitute a waiver by Employee of his right to terminate the Agreement  because
of a change in control of Employer, notwithstanding that a change in control may
have occurred prior to Employee's Notice of Termination.

         12.  "Date of  Termination"  shall mean,  if  Employee's  employment is
terminated  pursuant  to  paragraph  10  above,  the date on  which a Notice  of
Termination  is given.  The date on which a Notice of Termination is given shall
be the date when  hand-delivered  in person to any  officer of  Employer  except
Employee  or the next  business  day after  deposit  thereof  in the U.S.  mail,
postage  prepaid,  for delivery as registered or certified mail,  return receipt
requested, addressed to the corporate headquarters of Employer.

         13.  If (A) Employer shall terminate Employee's employment in breach of
this Agreement (it being understood  that,  without  limitation,  a breach shall
have  occurred if a  termination  pursuant to  paragraph 9 hereof is  thereafter
found  upon  arbitration  pursuant  to  paragraph  18 to be not  justifiable  or
otherwise  improper) or (B) Employee  shall  terminate  his  employment  for any
reason specified in paragraph 10, then

              (i)    Employer  shall pay  Employee  his full salary and benefits
through  the Date of  Termination  at the rate in effect  at the time  Notice of
Termination is given;

              (ii)   in lieu of any salary  payments  to  Employee  for  periods
subsequent to the Date of Termination  and in lieu of the 9-month  severance pay
provided in paragraph  1,  Employer  shall pay as  severance  pay to Employee an
amount  equal to the product of 2.99  multiplied  by a base amount  equal to the
average annual compensation paid by Employer to Employee which was includible in
Employee's gross income for federal income tax purposes for the most recent five
taxable  years ending before the date on which the change in control of Employer
occurs;

              (iii)  the parties  intend  that the base amount in the  preceding
subparagraph  (ii) shall be the highest base amount permitted by Section 280G of
the  Internal  Revenue Code of 1986,  as amended,  or any  successor  provisions
without  causing  any  portion of the  severance  pay to  constitute  an "excess
parachute  payment"  thereunder,  and if any  amendment  of Section  280G or any
successor  provision defines such a base amount so as to permit a greater amount
than defined in the preceding sentence, the greater base amount permitted by the
amended  provision  shall be  applicable,  provided,  however,  that (1) nothing
contained  herein shall reduce the severance  payment below the amount resulting
from  applying  the base  amount  set  forth in  subparagraph  (ii) and (2) this
subparagraph (iii) shall not be applicable after July 1, 2010 unless the parties
hereto expressly agree in writing to the extension of the  applicability of this
subparagraph;

              (iv)   if  termination  of Employee's  employment  arises out of a
breach by Employer of this Agreement, Employer shall pay all other damages to

                                        4
<PAGE>

which  Employee  may be entitled as a result of such breach,  including  but not
limited to damages for any loss of benefits to Employee and  including all legal
fees and expenses incurred by him as a result of such termination.

         14.  Any payment of Employer to Employee required by paragraph 13 above
shall be made in full no later than the next  business day following the date on
which Notice of  Termination is given as determined in paragraph 12 above or, if
applicable,  within five (5) business days of an arbitrator's ruling pursuant to
paragraph 18 of this Agreement (the "Payment Date").  Any failure by Employer to
make  payment in full to Employee  on or before the Payment  Date of all amounts
required  to be paid  to  Employee  pursuant  to this  Agreement  shall  entitle
Employee,  in addition to such amounts,  to liquidated damages equivalent to the
amount of  salary  and  benefits  to which  Employee  would  have been  entitled
pursuant to paragraph 3 of this  Agreement  (as such  paragraph may hereafter be
amended) if this Agreement had not been terminated  during the period  beginning
with and  including  the Payment  Date and ending on and  including  the date on
which  Employer  pays to Employee  all sums owing to  Employee  pursuant to this
Agreement.

         15.  Employee  shall not be  required  to  mitigate  the  amount of any
payment provided for in this Agreement by seeking other employment or otherwise.

         16.  In  recognition  of  Employee's  decades of  service to  Employer,
Employer agrees that after  termination of Employee's  employment  hereunder for
any reason,  whether such termination is pursuant to paragraph 1, 6, 9, 10 or 13
of this Agreement  (other than a termination  due to death pursuant to paragraph
6),  Employer  shall  provide  and pay for, at a minimum,  disability,  medical,
hospital and other health care benefits and life insurance  benefits that are no
less than the maximum  benefits  which were  provided to Employee and any spouse
and/or  children of his that were  covered  under  Employer's  plans at the time
Employee's employment is terminated (hereinafter "Post Employment Benefits").

              a.     Employer  further agrees that Employee will not be required
to  assume  co-pay  or  employee  contribution  costs  greater  than he had been
required to assume (if any) during that period of his  employment  when  maximum
benefits were provided to him.

              b.     Employer  shall  pay the  cost  of all of  Post  Employment
Benefits  until the  Employee's  death,  except that  Employer's  obligation  to
provide  and pay for Post  Employment  Benefits  for  Employee's  spouse  and/or
children shall terminate when said spouse and/or child dies or otherwise becomes
ineligible  for benefits  under any of the  applicable  plans,  if such an event
occurs prior to Employee's death.

              c.     If  Employer  is  unable  to  provide  the Post  Employment
Benefits as part of the plan or plans which provide  benefits to other employees
of the  Employer,  it shall  create a  special  or  individual  plan or plans to
provide the benefits; and if Employer is unable to provide such benefits through
a special or  individual  plan, it shall pay Employee  monthly an amount,  which
will equal the sum of the cost to Employee of his obtaining benefits  equivalent
to the Post Employment Benefits plus any additional federal and state income tax
cost,  to  Employee  of  receiving  such  payments  in lieu  of Post  Employment
Benefits.

              d.     Because of the  uncertainty  of the effect on certain terms
of this  Agreement  of  Internal  Revenue  Code  ("Code")  Section  409A and the
regulations and guidance  interpreting and implementing  Code Section 409A, with
Employee's prior written consent, Employer agrees to timely make such amendments

                                        5
<PAGE>

to this  Agreement  as may be necessary to avoid the  imposition  of  penalties,
interest and  additional  taxes under Code Section 409A and agrees that any such
amendment will provide Employee with economically the same payments and benefits
as would have been provided hereunder prior to such amendment.

         17.  If, by reason of any  amendment  to the  Internal  Revenue Code of
1986, as amended, subsequent to July 1, 2005, there may be imposed upon Employee
any  federal  tax in  excess of the  amount of  federal  income  tax that  would
otherwise  be imposed  upon  Employee  upon the  recognition  by Employee of any
payment by  Employer  to Employee  pursuant  to  paragraph  13 above as ordinary
income of Employee for federal income tax purposes,  then Employee,  at his sole
option,  may elect to receive from  Employer such lesser amount of severance pay
as Employee  shall  designate in his sole  discretion.  Such  election  shall be
deemed to have been properly made by Employee if set forth in Employee's  Notice
of Termination provided to Employer in accordance with paragraph 11 above.

         18.  Any  controversy,  claim or dispute  arising out of or relating to
this  Agreement,  including,  without  limitation,  any claim for breach of this
Agreement,  shall be settled by arbitration in accordance  with the Rules of the
American Arbitration  Association except as otherwise  specifically  provided in
this  paragraph.  Judgment upon any award rendered by the  arbitrators  pursuant
hereto may be entered in any court  having  jurisdiction  thereof.  Either party
shall have the right to  initiate  arbitration  proceedings  except  that (i) no
arbitration shall be commenced on a controversy  arising under paragraph 9 until
a decision  has been made by the Board of  Directors  as provided  therein,  but
Employee may initiate arbitration prior to such a decision if he shall have been
terminated  without  that  decision  having  occurred or if Employer  shall have
refused to pay the fees and disbursements of Employee's counsel;  (ii) paragraph
6 provides the exclusive  method of determining a dispute as to whether Employee
has total  disability,  and (iii)  Employer  must apply to a court having proper
jurisdiction  to obtain the  injunctive  relief  referred to in paragraph 8. Any
arbitration  shall take place in the County of Erie,  State of New York,  unless
both parties shall consent to another location.  Employer shall pay the costs of
the arbitration.

         19.  Subject to the  provisions  of paragraph 12 of this  Agreement,  a
notice to a party shall be effectively given to the Employee when hand-delivered
to the  Employee  and to the  Employer  when  hand-delivered  to any  officer of
Employer  except  Employee.  Notice  may also be  effectively  given on the next
business day after deposit in the U.S. mail,  postage  prepaid,  for delivery as
registered or certified mail, return receipt requested, addressed as follows:

              To Employee,  at 28 Tanglewood Drive West,  Orchard Park, New York
14127, unless Employee notifies Employer in writing of a new address.

              To Employer,  at its corporate  headquarters.  For all purposes of
this  paragraph  and  paragraph  11,  Employee  may assume  that the  Employer's
corporate headquarters is 1110 Maple Street, P.O. Box 300, Elma, New York 14059,
unless Employer notifies Employee in writing of a new address.

         20.  This  Agreement  constitutes  the  entire  agreement  between  the
parties  with  respect  to the  subject  matter  hereof  and  any  amendment  or
modification  of this Agreement is without effect unless it is in a writing duly
executed by both parties hereto.

         21.  This  Agreement  is made in the  State of New  York  and  shall be
interpreted under the laws of that State.

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<PAGE>

         22.  If any term or  provision  of this  Agreement  shall be held to be
invalid  or  unenforceable  for any  reason,  such  term or  provison  shall  be
ineffective  to the  extent  of  such  invalidity  or  unenforceability  without
invalidating the remaining terms and provisions hereof, and this Agreement shall
be construed as if such invalid or unenforceable  term or provision had not been
contained herein.

         23.  This  Agreement  shall be binding upon the parties  hereto,  their
successors and assigns; provided, however, neither party shall assign any of its
rights  hereunder  without the prior written  consent of the other party hereto.
Employer may not transfer, convey or otherwise dispose of all or any substantial
part of its assets or business (whether directly or indirectly, by sale, merger,
consolidation  or  otherwise)  unless the  transferee  assumes  in  writing  the
obligations of Employer  hereunder or Employee in his sole discretion  waives in
writing compliance with this provision.

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

                                         SERVOTRONICS, INC.

[SEAL]                                   By /s/LEE D. BURNS, TREASURER/SECRETARY
                                            ------------------------------------
                                         Name: Lee D. Burns
                                               ---------------------------------
                                         Title: Treasurer/Secretary
                                                --------------------------------

ATTEST:

/s/BERNADINE E. KUCINSKI
------------------------

                                         /s/ NICHOLAS D. TRBOVICH, JR.
                                         ---------------------------------------
                                         NICHOLAS D. TRBOVICH, JR.

                                       7<PAGE>

                                                                    EXHIBIT 4.1

      THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR
    INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
     (THE "ACT") OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR
        TRANSFERRED EXCEPT PURSUANT TO A REGISTRATION UNDER THE ACT OR AN
                              EXEMPTION THEREFROM.

                         CHINA MOBILITY SOLUTIONS, Inc.

                          Senior Convertible Debenture

                              Due: August [ ], 2006

$______________                                          Vancouver, B.C. Canada
No. ___________

FOR VALUE RECEIVED, China Mobility Solutions, Inc., a Florida corporation (the
"COMPANY"), hereby promises to pay to ______________ (the "HOLDER"), a
_________________ with a principal place of business located at _______________
or its registered assigns, the sum of ____________ Dollars ($____________) on
August [ ], 2006 (the "MATURITY DATE") plus interest thereon payable as
described in Section 1 below. This Debenture is one of a duly authorized issue
of Debentures of the Company designated as its "Senior Convertible Debentures
due 2006" (herein called the "DEBENTURES"), in the aggregate principal amount of
$2,000,000 (plus up to $1,350,000 of Debentures which may be issued as
over-subscriptions) at a per unit ("UNIT") purchase price ("PURCHASE PRICE") of
$25,000 and is issued pursuant to a Debenture Purchase and Warrant Agreement,
dated as of June 30, 2005, as amended (herein called the "AGREEMENT"), among the
Company and the Purchasers named therein, to which Agreement and all agreements
supplemental thereto reference is hereby made for a statement of the respective
rights and duties thereunder of the Company and the Holder and the terms upon
which this Debenture is, and is to be, delivered. Each Unit consists of a
$25,000 principal amount of Debentures, and Class A Warrants and Class B
Warrants (the "WARRANTS") to purchase shares of common stock, $0.001 par value
(the "COMMON STOCK") of the Company (the "WARRANT SHARES"). The number of
Warrants Shares issuable upon exercise of both the Class A Warrants and Class B
Warrants shall be determined by dividing the purchase price per Unit of $25,000
by the Conversion Price of the Debentures. This Debenture is being issued pari
passu with the other Debentures sold by the Company pursuant to the Agreement.
         All capitalized terms used herein as defined terms but not otherwise
defined shall have the respective meanings ascribed to such terms in the
Agreement.

         1. INTEREST AND PAYMENT

         (a) The unpaid principal balance of this Debenture shall bear interest,
from and including the date hereof to and including the date upon which the
principal hereof shall have been paid in full at the rate of not less than 6%
per annum, equal to the sum of (i) 2% per annum, and (ii) the interest rate (the
"Interest") from time to time published in the "Money Rates" section of The Wall
Street Journal as the one-month London Interbank Offer Rate ("LIBOR"). Interest
shall be payable quarterly in arrears in cash or in kind, at the Holder's
option, commencing [ ], 2005.

<PAGE>

         (b) The Holder may elect in its sole discretion to receive Interest in
shares of the Company's Common Stock ("Interest Shares") in accordance with this
section. Payment of Interest in shares of Common Stock may only occur if: (i)
there is an effective Registration Statement pursuant to which the Holder is
permitted to utilize the prospectus thereunder to resell all of the Interest
Shares; (ii) the Common Stock is listed for trading on a Principal Market; and
(iii) there is a sufficient number of authorized but unissued and otherwise
unreserved shares of Common Stock for the issuance of all of the shares issuable
pursuant to the Offering. Not less than 10 Trading Days prior to each Interest
payment date, the Holder shall provide the Company with written notice of its
election to receive Interest hereunder either in cash or Interest Shares.
Subject to the aforementioned conditions, failure to timely provide such written
notice shall be deemed an election by the Holder to receive the Interest on such
date in cash. The number of Interest Shares to be issued upon payment of
Interest under this Debenture shall be the number determined by a 10% discount
to the average Closing bid price of the Company's Common Stock for the 5
consecutive trading days commencing on the 15th day of the month in which
Interest shall by paid (or if such 15th day not a Business Day, then on the
Business Day immediately following such date).

         (c) Payments of principal and interest shall be made in such coin or
currency of the United States of America as at the time of payment shall be
legal tender for the payment of public or private debts. No reference herein to
the Agreement and no provisions of this Debenture or of the Agreement shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and interest on this Debenture at the
times, places, and rates, and in the coin or currency, herein prescribed.

         (d) All payments received on account of this Debenture shall be applied
first to the payment of accrued interest on this Debenture and then to the
reduction of the unpaid principal balance of this Debenture.

         (e) If payment of the outstanding principal amount of this Debenture,
together with accrued unpaid interest thereon at the applicable rate of interest
(as set forth herein), is not made on the earlier to occur of (i) the Maturity
Date and (ii) the Accelerated Maturity Date (as defined below), then interest
shall accrue on the outstanding principal amount due under this Debenture and on
any unpaid accrued interest due on this date of the payment in full of such
amounts (including from and after the date of the entry of judgment in favor of
the Holder in an action to collect this Debenture) at an annual rate equal to
the lesser of twelve percent (12%) or the maximum rate of interest permitted by
applicable law.

         (f) Notwithstanding anything to the contrary contained in this
Debenture, the Company shall not be obligated to pay, and the Holder shall not
be entitled to charge, collect, or receive, interest in excess of the maximum
rate allowed by applicable law. During any period of time in which the interest
rate specified herein exceeds such maximum rate, any amounts of interest
collected by the Holder in excess of such maximum rate shall be deemed to apply
to principal and all payments of interest and principal shall be recalculated to
allow for such characterization.

                                      -2-
<PAGE>

         (g) In the event that the date for the payment of any amount payable
under this Debenture falls due on a Saturday, Sunday or public holiday under the
laws of the State of New York, the time for payment of such amount shall be
extended to the next succeeding business day and interest shall continue to
accrue on any principal amount so effected until the payment thereof on such
extended due date.

         2. PREPAYMENT

          The principal of this Debenture is subject to prepayment, together
with accrued interest, in accordance with Section 10 of this Debenture. Subject
to redemption, the aggregate principal amount of this Debenture plus accrued but
unpaid interest thereon shall be paid no later than August [ ], 2006.

         3. COVENANTS OF THE COMPANY

          The Covenants of the Company set forth in the Agreement are
incorporated herein as if set forth at length.

         4. EVENTS OF DEFAULT.

          If any of the following events (each an "EVENT OF DEFAULT") occurs:

         (a) The dissolution of Company or any vote in favor thereof by the
board of directors and shareholders of Company; or

         (b) Company makes an assignment for the benefit of creditors, or files
with a court of competent jurisdiction an application for appointment of a
receiver or similar official with respect to it or any substantial part of its
assets, or Company files a petition seeking relief under any provision of the
Federal Bankruptcy Code or any other federal or state statute now or hereafter
in effect affording relief to debtors, or any such application or petition is
filed against Company, which application or petition is not dismissed or
withdrawn within sixty (60) days from the date of its filing; or

         (c) Company fails to pay the principal amount, interest or any other
amount payable under, this Debenture as and when the same becomes due and
payable; or

         (d) Company admits in writing its inability to pay its debts as they
mature; or

         (e) A proceeding is commenced to foreclose a security interest or lien
in any property or assets of Company as a result of a default in the payment or
performance of any debt (in excess of $50,000 and secured by such property or
assets) of Company or of any subsidiary of Company; or

         (f) A proceeding or involuntary case shall be commenced, without the
application or consent of the Company or any Subsidiary thereof, in any court of
competent jurisdiction (i) under the Federal Bankruptcy Code, (ii) seeking
liquidation, reorganization, dissolution, winding up or composition or
readjustment of its debts under any other bankruptcy, insolvency, moratorium,
reorganization or other similar law of any jurisdiction, or (iii) seeking the
appointment of a trustee, receiver or similar official for it or for all or any
substantial part of its assets, and any such proceeding or case shall continue
undismissed, or unstayed and in effect, for a period of ninety (90) days; or

                                      -3-
<PAGE>

         (g) A final judgment for the payment of money in excess of $100,000 is
entered against Company by a court of competent jurisdiction, and such judgment
is not discharged (nor the discharge thereof duly provided for) in accordance
with its terms, nor a stay of execution thereof procured, within sixty (60) days
after the date such judgment is entered, and, within such period (or such longer
period during which execution of such judgment is effectively stayed), an appeal
therefrom has not been prosecuted and the execution thereof caused to be stayed
during such appeal; or

         (h) An attachment or garnishment is levied against the assets or
properties of Company or any subsidiary of Company involving an amount in excess
of $100,000 and such levy is not vacated, bonded or otherwise terminated within
sixty (60) days after the date of its effectiveness; or

         (i) Company defaults in the due observance or performance of any
covenant, condition or agreement on the part of Company to be observed or
performed pursuant to the terms of this Debenture or any of the Transaction
Agreements and such default continues uncured for a period of thirty (30) days;
or

         (j) The Company or any Subsidiary thereof defaults in the payment when
due of the principal of, interest on, or any other liability on account of, any
indebtedness of the Company or such Subsidiary having an unpaid principal amount
in excess of $100,000, which causes the maturity of such indebtedness to be
accelerated or permits the holder or holders of such indebtedness to declare the
same to be due prior to the stated maturity thereof, and such default has not
been cured within sixty (60) days after the occurrence of such default;
provided, however, that it shall not be deemed an Event of Default under this
Section 4 if the reason for the Company or any Subsidiary to make such payment
when due is due to the fact that such payment or indebtedness is being disputed
in good faith by the Company or such Subsidiary; or

         (k) Any representation, warranty or statement of fact made by the
Company in the Transaction Agreements, or in any certificate or audited
financial statement delivered by the Company to the Holder at any time proves to
be false or misleading in any material respect when made or deemed made by the
Company; or

         (l) The Company or any of its Subsidiaries sells all or substantially
all of its assets or merges or is consolidated with another corporation in which
the Company or such Subsidiary, as the case may be, is not the surviving
corporation, and the Debentures have not been expressly assumed by the surviving
entity;

then, upon the occurrence of any such Event of Default and at any time
thereafter, the principal amount, all accrued but unpaid interest on, and all
other amounts payable under this Debenture may be declared, and upon such
declaration shall become, immediately due and payable without presentment,
demand, protest, or other notice of any kind, all of which are expressly waived.
As used in this Debenture, "Accelerated Maturity Date" means any date prior to
the Maturity Date on which the principal of and any accrued and unpaid interest
on this Debenture is declared to be, or becomes, due pursuant to this Section 4.

                                      -4-
<PAGE>

         5. SUITS FOR ENFORCEMENT AND REMEDIES. If any one or more Events of
Default shall occur and be continuing, the Holder may proceed to (i) protect and
enforce Holder's rights either by suit in equity or by action at law, or both,
whether for the specific performance of any covenant, condition or agreement
contained in this Debenture or in any agreement or document referred to herein
or in aid of the exercise of any power granted in this Debenture or in any
agreement or document referred to herein, (ii) enforce the payment of this
Debenture, or (iii) enforce any other legal or equitable right of the holder of
this Debenture. No right or remedy herein or in any other agreement or
instrument conferred upon the Holder of this Debenture is intended to be
exclusive of any other right or remedy, and each and every such right or remedy
shall be cumulative and shall be in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or by statute
or otherwise.

         6. SENIORITY

         Notwithstanding anything herein contained to the contrary, the
Indebtedness evidenced by this Debenture shall be unsecured and senior in
priority to the payment of principal and interest on all existing or future
indebtedness. Each Holder, by accepting the same, agrees to and shall be bound
by such provisions.

         7. CONVERSION

          (a) At any time, if this Debenture is then outstanding, the Holder
shall have the right, in its sole discretion, to convert all or any part, but in
not less than $10,000 increments except for the final conversion which may be
for the remainder of the then outstanding principal amount of this Debenture,
with the accrued interest hereon (a "CONVERSION") into such number of fully paid
and non-assessable shares Common Stock of the Company (the "DEBENTURE SHARES")
at the conversion price determined in accordance herewith (the "CONVERSION
PRICE").

          (b) The number of Debenture Shares to be delivered by the Company
pursuant to a Conversion shall be determined by dividing (i) the sum of (x) the
aggregate principal amount of the Debenture to be converted plus (y) all accrued
and unpaid Interest thereon by (ii) the Conversion Price in effect on the
applicable Conversion Date. The initial Conversion Price shall be equal to a
twenty percent (20%) discount of the average closing bid price (calculated to
the nearest $.0001) of the Company's Common Stock for the ten (10) consecutive
trading dates (the "Average Closing Price") immediately preceding and including
the second trading day immediately prior to the closing date (the "CLOSING
DATE"), but in no event less than $.30 per share (the "CONVERSION FLOOR
AMOUNT"). The Conversion Price shall be subject to adjustment, however, in
accordance with the provisions of this Section.

                                      -5-
<PAGE>

         (c) In order for the Holder to voluntarily convert this Debenture into
Debenture Shares, the Holder shall send to the Company by facsimile
transmission, at any time prior to 6:00 p.m., eastern time, on the Business Day
on which such Holder wishes to effect such Conversion (the "Conversion Date"),
(i) a notice of conversion, in substantially the form of Exhibit A hereto (a
"Notice"), stating the aggregate principal amount of the Debenture to be
converted, the amount of Interest accrued (but remaining unpaid) thereon, and a
calculation of the number of shares of Common Stock issuable upon such
Conversion and (ii) a copy of this Debenture. The Holder shall send the original
of the Notice and the Debenture to the Company or its counsel not later than the
close of business on the first Business Day following the Conversion Date. The
Company shall, no later than the close of business on the first Business Day
following the date on which the Company receives the Notice by facsimile
transmission issue and deliver to the Company's Transfer Agent irrevocable
instructions to issue and deliver or cause to be delivered to such Holder the
number of Debenture Shares determined pursuant to paragraph 7(b) above, within
two Business Days thereafter by either express mail or hand delivery. As of the
Conversion Date, this Debenture shall be deemed to have been converted into
Debenture Shares, which shall be deemed to be outstanding of record, and all
rights with respect to this Debenture (as to the portion converted) will
terminate, except for the right of the Holder hereof to receive certificates for
the number of Debenture Shares into which the Debenture has been converted,
unless delivery of the Debenture Shares is not timely made. In the event
delivery of the Debenture Shares is not timely made, the Holder may, upon
written notice to the Company, either elect a Buy-In as set forth in subsection
7(d) below, or regain on the date of such notice the rights of such Holder under
the Debenture and retain all of such Holder's rights and remedies with respect
to the Company's failure to deliver such Debenture Shares.

          (d) In addition to any other rights available to a Holder, if the
Company fails to deliver to the Holder a certificate representing Debenture
Shares by the third Trading Day after the date on which delivery of such
certificate is required by this Debenture, and if after such third Trading Day
the Holder purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Holder on or after the
Conversion Date of the Debenture Shares that the Holder anticipated receiving
from the Company (a "BUY-IN"), then the Company shall, within three Trading Days
after the Holder's request and in the Holder's discretion, either (i) pay cash
to the Holder in an amount equal to the Holder's total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased (the
"BUY-IN PRICE"), at which point the Company's obligation to deliver such
certificate (and to issue such Common Stock) shall terminate, or (ii) promptly
honor its obligation to deliver to the Holder a certificate or certificates
representing such Common Stock and pay cash to the Holder in an amount equal to
the excess (if any) of the Buy-In Price over the product of (A) such number of
shares of Common Stock, times (B) the Closing Price on the date of the event
giving rise to the Company's obligation to deliver such certificate.
Notwithstanding the foregoing, the Company shall have no liability under this
subsection (d) for the Buy-In Price if it has compiled with the requirements of
subsection (c) above and notwithstanding it using its best efforts to have its
transfer agent deliver the Debenture Shares to the Holders within three trading
days of the Holder's request such Debenture Shares are not delivered on a timely
basis.

         A Conversion shall in no way limit or alter the Company's obligation to
pay any accrued but unpaid Interest hereunder or to pay Interest on any
principal hereunder outstanding after a Conversion. No fractional shares shall
be issued upon conversion of all of this Debenture. Any fractional share
interests equal to less than one-half share shall be disregarded, and fractional
share interests equal to one-half or more of a share shall be rounded up to a
full share.

                                      -6-
<PAGE>

         8. ADJUSTMENTS TO CONVERSION PRICE. The Conversion Price shall be
subject to adjustment from time to time as provided in this Section 8. In the
event that any adjustment of the Conversion Price required herein results in a
fraction of a cent, the Conversion Price shall be rounded up or down to the
nearest cent.

         (a) Subdivision or Combination of Common Stock. If the Company, at any
time after the Closing Date (as defined in the Agreement), subdivides (by any
stock split, stock dividend, recapitalization, reorganization, reclassification
or otherwise) the outstanding shares of Common Stock into a greater number of
shares, then after the date of record for effecting such subdivision, the
Conversion Price in effect immediately prior to such subdivision will be
proportionately reduced. If the Company, at any time after the Closing Date,
combines (by reverse stock split, recapitalization, reorganization,
reclassification or otherwise) the outstanding shares of Common Stock into a
smaller number of shares, then, after the date of record for effecting such
combination, the Conversion Price in effect immediately prior to such
combination will be proportionally increased.

         (b) Distributions. If the Company shall declare or make any
distribution of cash or any other assets (or rights to acquire such assets) to
holders of Common Stock in respect of such Common Stock, as a partial
liquidating dividend or otherwise, including without limitation any dividend or
distribution to the Company's stockholders in shares (or rights to acquire
shares) of capital stock of a subsidiary (a "Distribution"), the Company shall
deliver written notice of such Distribution (a "Distribution Notice") to each
Holder at least thirty (30) days prior to the earlier to occur of (i) the record
date for determining stockholders entitled to such Distribution (the "Record
Date") and (ii) the date on which such Distribution is made (the "Distribution
Date"). The earlier to occur of the Record Date and the Distribution Date is
referred to herein as the "Determination Date". In the Distribution Notice to a
Holder, the Company must indicate whether the Company has elected (A) to deliver
to such Holder, at the same time that it makes such Distribution to its
stockholders, the same amount and type of assets being distributed in such
Distribution as though the Holder were a holder on the Determination Date
therefor of a number of shares of Common Stock into which the Debentures held by
such Holder are convertible as of such Determination Date (such number of shares
to be determined at the Conversion Price then in effect and without giving
effect to any limitations on such conversion) or (B) to reduce the Conversion
Price as of the Determination Date therefor by an amount equal to the fair
market value of the assets to be distributed divided by the number of shares of
Common Stock as to which such Distribution is to be made, such fair market value
to be reasonably determined in good faith by the independent members of the
Company's Board of Directors. If the Company does not notify the Holders of its
election pursuant to the preceding sentence within two (2) Business Days
following the date on which the Company publicly announces a Distribution, the
Company shall be deemed to have elected clause (A) of the preceding sentence.

         (c) Dilutive Issuances.

                  (i) Adjustment Upon Dilutive Issuance. If, at any time after
the Closing Date and for a period of twelve months following the Closing Date,
the Company issues or sells any shares of Common Stock or any equity or equity
equivalent securities (including any equity, debt or other instrument that is at
any time over the life thereof convertible into or exchangeable for Common Stock
or other securities which are so convertible or exchangeable) (collectively,
"Common Stock Equivalents") for a per share consideration less than the
Conversion Price on the date of such issuance or sale (a "Dilutive Issuance") as
adjusted hereunder (if the holder of the Common Stock or Common Stock Equivalent
so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise,
or due to warrants, options or rights per share which is issued in connection
with such issuance, be entitled to receive shares of Common Stock at a price per
share which is less than the Conversion Price, such issuance shall be deemed to
have occurred for less than the Conversion Price), then the Conversion Price
shall be adjusted so as to equal the value of the consideration received or
receivable by the Company (on a per share basis) for the additional shares of
Common Stock or Common Stock Equivalents so issued, sold or deemed issued or
sold in such Dilutive Issuance. Such adjustment shall be made whenever such
Common Stock or Common Stock Equivalents are issued.

                                      -7-
<PAGE>

                  (ii) Effect On Conversion Price Of Certain Events. For
purposes of determining the adjusted Conversion Price under subparagraph (i) of
this paragraph (c), the following will be applicable:

                  (A) Issuance of Common Stock Equivalents. If the Company
         issues or sells any Common Stock Equivalents, whether or not
         immediately convertible, exercisable or exchangeable, and the price per
         share for which Common Stock is issuable upon such conversion, exercise
         or exchange is less than the Conversion Price in effect on the date of
         issuance or sale of such Common Stock Equivalents, then the maximum
         total number of shares of Common Stock issuable upon the conversion,
         exercise or exchange of all such Common Stock Equivalents shall, as of
         the date of the issuance or sale of such Common Stock Equivalents, be
         deemed to be outstanding and to have been issued and sold by the
         Company for such price per share.

                  (B) Change in Conversion Rate. If, following an adjustment to
         the Conversion Price upon the issuance of Common Stock Equivalents
         pursuant to a Dilutive Issuance, there is a change at any time in (y)
         the amount of additional consideration, if any, payable to the Company
         upon the conversion, exercise or exchange of any Common Stock
         Equivalents; or (z) the rate at which any Common Stock Equivalents are
         convertible into or exercisable or exchangeable for Common Stock (in
         each such case, other than under or by reason of provisions designed to
         protect against dilution), then in any such case, the Conversion Price
         in effect at the time of such change shall be readjusted to the
         Conversion Price which would have been in effect at such time had such
         Common Stock Equivalents still outstanding provided for such changed
         additional consideration or changed conversion, exercise or exchange
         rate, as the case may be, at the time initially issued or sold.

                  (C) Calculation of Consideration Received. If any Common Stock
         or Common Stock Equivalents are issued or sold for cash, the
         consideration received therefor will be the amount received by the
         Company therefor. In case any Common Stock or Common Stock Equivalents
         are issued or sold for a consideration part or all of which shall be
         other than cash, including in the case of a strategic or similar
         arrangement in which the other entity will provide services to the
         Company, purchase services from the Company or otherwise provide
         intangible consideration to the Company, the amount of the
         consideration other than cash received by the Company (including the
         net present

                                      -8-
<PAGE>

         value of the consideration other than cash expected by the Company for
         the provided or purchased services) shall be the fair market value of
         such consideration, except where such consideration consists of
         publicly traded securities, in which case the amount of consideration
         received by the Company will be the Market Price thereof on the date of
         receipt. The term "Market Price" means, as of a particular date, the
         average of the high and low price of the Common Stock for the ten (10)
         consecutive Trading Days occurring immediately prior to (but not
         including) any given date, as reported on the Principal Market. In case
         any Common Stock or Common Stock Equivalents are issued in connection
         with any merger or consolidation in which the Company is the surviving
         corporation, the amount of consideration therefor will be deemed to be
         the fair market value of such portion of the net assets and business of
         the non-surviving corporation as is attributable to such Common Stock
         or Common Stock Equivalents. The independent members of the Company's
         Board of Directors shall calculate reasonably and in good faith, using
         standard commercial valuation methods appropriate for valuing such
         assets, the fair market value of any consideration other than cash or
         securities.

                  (D) Issuances Without Consideration Pursuant to Existing
         Securities. If the Company issues (or becomes obligated to issue)
         shares of Common Stock pursuant to any anti-dilution or similar
         adjustments (other than as a result of stock splits, stock dividends
         and the like) contained in any Common Stock Equivalents outstanding as
         of the date hereof, then all shares of Common Stock so issued shall be
         deemed to have been issued for no consideration.

                  (iii) Exceptions To Adjustment Of Conversion Price.
Notwithstanding the foregoing, no adjustment to the Conversion Price shall be
made pursuant to this paragraph (c) upon the issuance of any Excluded
Securities. For purposes hereof, "Excluded Securities" means (A) securities
purchased under the Agreement; (B) securities issued upon conversion of the
Debentures or exercise of the Warrants; (C) shares of Common Stock issuable or
issued to (x) employees or directors from time to time either directly or upon
the exercise of options, in such case granted or to be granted in the discretion
of the Board of Directors, as approved by the independent members of the Board,
pursuant to one or more stock option plans or stock purchase plans in effect as
of the Closing Date or subsequently approved by the independent members of the
Board of Directors and by the Company's stockholders, or (y) to consultants or
vendors, either directly or pursuant to warrants to purchase Common Stock that
are outstanding on the date hereof or up to 100,000 shares of Common Stock, in
the aggregate, issued hereafter, provided such issuances are approved by the
Board of Directors or by the Company's stockholders; and (D) shares of Common
Stock issued in connection with any Common Stock Equivalents outstanding on the
date hereof.

                  (iv) Notice Of Adjustments. Upon the occurrence of an
adjustment to the Conversion Price pursuant to this paragraph (c) or any change
in the number or type of stock, securities and/or other property issuable upon
conversion of the Debentures, the Company, at its expense, shall promptly
compute such adjustment or readjustment or change and prepare and furnish to
each Holder a notice (an "Adjustment Notice") setting forth such adjustment or
readjustment or change and showing in detail the facts upon which such
adjustment or readjustment or change is based and shall, on or before the time
that it delivers an Adjustment Notice, publicly disclose the contents thereof.
The failure of the Company to deliver an Adjustment Notice shall not affect the
validity of any such adjustment.

                                      -9-
<PAGE>

         (d) Adjustments; Additional Shares, Securities or Assets. In the event
that at any time, as a result of an adjustment made pursuant to this Section 8,
each Holder shall, upon conversion of such Holder's Debentures, become entitled
to receive securities or assets (other than Common Stock) then, wherever
appropriate, all references herein to shares of Common Stock shall be deemed to
refer to and include such shares and/or other securities or assets; and
thereafter the number of such shares and/or other securities or assets shall be
subject to adjustment from time to time in a manner and upon terms as nearly
equivalent as practicable to the provisions of this Section 8.

         (e) The Company covenants that it will at all times reserve and keep
available out of its authorized and unissued shares of Common Stock solely for
the purpose of issuance upon conversion of the Debentures, free from preemptive
rights or any other actual contingent purchase rights of persons other than the
Holders, not less than such number of shares of the Common Stock as shall
(subject to any additional requirements of the Company as to reservation of such
shares set forth in the Agreement) be issuable (taking into account the
adjustments and restrictions of Section 8) upon the conversion of the
outstanding principal amount of the Debentures. The Company covenants that all
shares of Common Stock that shall be so issuable shall, upon issue, be duly and
validly authorized, issued and fully paid, nonassessable and, if the
Registration Statement has been declared effective under the Securities Act,
registered for public sale in accordance with such Registration Statement.

         9. CONVERSION LIMITATIONS.

         In no event shall a Holder be permitted to convert any Debentures to
the extent that, upon the Conversion of such Debentures, the number of shares of
Common Stock beneficially owned by such Holder (other than shares of Common
Stock issuable upon conversion of such Debentures or which would otherwise be
deemed beneficially owned except for being subject to a limitation on conversion
or exercise analogous to the limitation contained in this Section 9), when added
to the number of shares of Common Stock issuable upon the Conversion of such
Debentures, would exceed 4.99% of the number of shares of Common Stock then
issued and outstanding. As used herein, beneficial ownership shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules thereunder.
To the extent that the limitation contained in this paragraph applies (and
without limiting any rights the Company may otherwise have), the Company may
rely on the Holder's determination of whether Debentures are convertible
pursuant to the terms hereof, the Company having no obligation whatsoever to
verify or confirm the accuracy of such determination, and the submission of a
Conversion Notice by the Holder shall be deemed to be the Holder's
representation that the Debentures specified therein are convertible pursuant to
the terms hereof. Nothing contained herein shall be deemed to restrict the right
of a Holder to convert Debentures at such time as the Conversion thereof will
not violate the provisions of this paragraph. The limitation contained in this
paragraph shall cease to apply to a Holder upon sixty-one (61) days' prior
written notice from such Holder to the Company.

                                      -10-
<PAGE>

         10. REDEMPTION

                  (a) The Debentures shall be subject to redemption, at the
Company's option at a redemption price equal to 125% of the principal amount,
plus accrued interest thereon at any time commencing six months after the
Effective Date of the Registration Statement. If the Company chooses to exercise
its right to redeem all or any portion of the Debentures, notice of such
redemption (the "Redemption Notice") shall be given by the Company to the
Holders of the Debentures to be redeemed as hereinafter set forth. The Company
covenants and agrees that it will honor all Conversion Notices tendered through
the third business day preceding the Redemption Date. The redemption payment
shall be made in cash on date fixed for redemption in the Company's notice of
redemption, as described below (the "Redemption Date"). The redemption payment
is due in full on the Redemption Date.

                   (b) The Company may only effect an redemption if from the
date of the Redemption Notice through to the Redemption Date, each of the
following shall be true: (i) the Company shall have duly honored all conversions
and redemptions scheduled to occur or occurring by virtue of one or more
Conversion Notices prior to the Redemption Date, (ii) no Event of Default has
occurred and is continuing; (iii) the Registration Statement is currently
available to the Holders and not subject to any stop order suspending the
effectiveness of the Registration Statement; and (iv) no public announcement of
a pending or proposed change of control transaction has occurred that has not
been consummated. If any of the foregoing conditions shall cease to be satisfied
at any time during the required period, then the Holder may elect to nullify the
Redemption Notice in which case the Redemption Notice shall be null and void, ab
initio.

                   (c) The Redemption. Notice shall be sent to the Holders of
the Debentures to be redeemed by certified or registered mail, return receipt
requested, to the registered Holders thereof at the respective addresses that
appear on the books of the Company. Each such Redemption Notice shall: (i)
specify the Redemption Date; (ii) state the place where payment of the
redemption price is to be made; (iii) state that payment of the Debentures to be
redeemed will be made at such place upon presentation and surrender of such
Debentures; (iv) state that interest accrued to the date fixed for redemption
will be paid as specified in said notice and that from and after said date
interest thereon will cease to accrue; (v) state that the right to convert the
principal and interest of the Debentures so to be redeemed will terminate at the
close of business on the third business day preceding the Redemption Date; and
(vi) state the conversion price and the number of shares of Common Stock
issuable upon conversion.

         11. REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE

         If there shall occur any (i) reorganization, recapitalization,
reclassification, consolidation, merger, business combination, tender offer,
share exchange or similar event involving the Company in which the Common Stock
of the Company is converted into or exchanged for securities, cash or other
property of the Company or another entity or (ii) sales or other disposition by
the Company of all or substantially all of its assets (collectively, a
"TRANSACTION"), then, as a condition of such Transaction, the Company will give
each Holder at least twenty (20) Trading Days' written notice prior to the
earlier of (I) the closing or

                                      -11-
<PAGE>

effectiveness of such Transaction and (II) the record date for the receipt of
such shares of stock or securities or other assets, and each Holder shall be
permitted to convert the Debentures held by such Holder in whole or in part, but
in not less than $10,000 increments, at any time prior to the record date for
the receipt of such consideration and lawful and adequate provision shall be
made whereby the Holder of this Debenture shall have the right to acquire and
receive upon the conversion of this Debenture, such shares of stock, securities
or assets as would have been issuable or payable (as part of the Transaction)
with respect to or in exchange for such number of outstanding shares of the
Company's Common Stock as would have been received upon conversion of this
Debenture immediately before such Transaction. If and to the extent that a
Holder retains any Debentures following such record date, the Company will cause
the surviving or, in the event of a sale of assets, purchasing entity, as a
condition precedent to such Transaction, to assume the obligations of the
Company with respect to the Debentures, with such adjustments to the Conversion
Price and the securities covered hereby as may be necessary in order to preserve
the economic benefits of the Debentures to such Holder.

         In addition, the Company hereby covenants and agrees that immediately
after such Transaction, the Company shall not be in default in the performance
or observance of any of the terms, covenants and conditions of this Debenture.

         12. RESTRICTION ON TRANSFER

         This Debenture has been acquired for investment, and this Debenture has
not been registered under the securities laws of the United States of America or
any state thereof. Accordingly, no interest in this Debenture may be offered for
sale, sold or transferred in the absence of registration and qualification of
this Debenture, under applicable federal and state securities laws or an opinion
of counsel of Holder reasonably satisfactory to the Company that such
registration and qualification are not required.

         13. WAIVER

         The Company and all endorsers of this Debenture hereby waive
presentment, demand, notice of nonpayment, protest and all other demands and
notices, including without limitation notice of intent to accelerate or of
acceleration in connection with the delivery, acceptance, performance, default,
or enforcement of this Debenture, assent to any and all extensions or
postponements of the time of payment or any other indulgence, to any
substitution, exchange, or release of collateral, and/or to the addition or
release of any other party or person primarily or secondarily liable, and
generally waive all suretyship defenses and defenses in the nature thereof.

         14. FEES AND EXPENSES

         The Company will pay all costs and expenses of collection, including
reasonable attorneys' fees and court costs, incurred or paid by the Holder
hereof in enforcing this Debenture or the obligations evidenced hereby, to the
maximum extent permitted by law.

                                      -12-
<PAGE>

         15. GOVERNING LAW; JURISDICTION

         This Debenture shall be deemed to be a contract made under the laws of
the State of New York, without giving effect to the conflicts of laws principles
thereof, and shall for all purposes be construed under and governed by the laws
of said jurisdiction.

         THE COMPANY AND THE HOLDER EACH (I) AGREES THAT ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS DEBENTURE SHALL BE INSTITUTED
EXCLUSIVELY IN THE APPROPRIATE STATE COURT COUNTY OF NEW YORK, NEW YORK OR IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, (II)
WAIVES ANY OBJECTION WHICH THE COMPANY MAY HAVE NOW OR HEREAFTER BASED UPON
FORUM NON CONVENIENS OR TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND
(III) IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE STATE COURT, COUNTY OF NEW
YORK, NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK IN ANY SUCH SUIT, ACTION OR PROCEEDING.

         16. MISCELLANEOUS

          16.1 The headings of the various paragraphs of this Debenture are for
convenience of reference only and shall in no way modify any of the terms or
provisions of this Debenture.

         16.2 The Company may deem and treat the registered Holder hereof as the
absolute owner of this Debenture (whether or not this Debenture shall be overdue
and notwithstanding any notice of ownership or writing hereon made by anyone
other than the Company, for the purpose of receiving payment hereof or thereof
or on account hereof and for all other purposes) and the Company shall not be
affected by notice to the contrary.

         16.3 The obligations to make the payments provided for in this
Debenture are absolute and unconditional and not subject to any defense,
set-off, counterclaim, rescission, recoupment or adjustment whatsoever. No
provision of this Debenture shall alter or impair the obligations of the Company
hereby.

         16.4 No forbearance, indulgence, delay or failure to exercise any right
or remedy with respect to this Debenture shall operate as a waiver or as an
acquiescence in any Default, nor shall any single or partial exercise of any
right or remedy preclude any other or further exercise thereof or the exercise
of any other right or remedy.

         16.5 This Debenture is one of a series of Debentures issued by the
Company in the Offering and may be amended by the written consent of the Company
and holders of at least a majority of the aggregate principal amount of the
Debentures then outstanding. Notwithstanding the foregoing, no extension of the
maturity of the Debentures, waiver of an Event of Default, reduction in the
interest rate, modification in the terms of payment of the principal of or
interest on the Debentures, or reduction of the percentage required for
modification will be effective against any Debentureholder without his consent.
This Debenture may not be discharged (other than by payment), except by a
writing duly executed by the Company and Holder.

                                      -13-
<PAGE>

         16.6 All notices required to be given to any of the parties hereunder
shall be in writing and shall be deemed to have been sufficiently given for all
purposes when presented personally to such party, sent by telecopier (with the
original timely mailed), or sent by registered, certified or express mail,
return receipt requested, to such party at its address set forth below:

                  If to the Company, to:

                  China Mobility Solutions, Inc.
                  900-789 West Pender Street
                  Vancouver, B.C. Canada V6C 1H2
                  Attn: Xiao-Qing (Angela) Du, President
                  Telephone: (604) 632-9638
                  Facsimile: (604) 408-8515

                  If to the Holder, to:

                  _______________________________________

                  _______________________________________

                  _______________________________________

                  _______________________________________

or hereafter given to the other party hereto pursuant to the provisions of this
Debenture.

         16.7 The Company may not delegate its obligations under this Debenture
and such attempted delegations shall be null and void. The Holder may not
assign, pledge or otherwise transfer this Debenture without the prior written
consent of the Company (which consent shall not be unreasonably withheld except
in such instance where the proposed assignee or transferee is a direct or
indirect competitor or owns any interest in any business that competes, directly
or indirectly, with the Company). This Debenture inures to the benefit of Payee,
its successors and its assignee of this Debenture and binds the Company, and its
successors and assigns, and the terms "Payee" and "the Company" whenever
occurring herein shall be deemed and construed to include such respective
successors and assigns. Any assignment or transfer made in violation of this
Section 16.7 shall be void ab initio.

         16.8 Upon receipt by the Company of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of this Debenture, and, in case
of loss, theft or destruction, of indemnity or security reasonably satisfactory
to it, and reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Debenture, if mutilated,
the Company will make and deliver a new Debenture of like date and tenor, in
lieu hereof.

                                      -14-
<PAGE>

Remainder of page intentionally left blank. Signature page follows.

                                      -15-
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Debenture to be duly
executed as a sealed instrument.

Attest:                                 CHINA MOBILITY SOLUTIONS, INC.

                                        By:
                                            -----------------------------------
                                            Xiao-Qing (Angela) Du
                                            President, Director and Principal
                                            Accounting Officer

[Corporate Seal]

                                      -16-
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

The undersigned hereby elects to convert this Debenture into shares of common
stock ("Common Stock") of CHINA MOBILITY SOLUTIONS, INC. according to the terms
and conditions of the Debenture as of the date written below. Capitalized terms
used herein and not otherwise defined shall have the respective meanings set
forth in the Debenture.

                           Date of Conversion:
                                              ---------------------------------

                           Principal Amount of Debenture and
                           accrued Interest to be Converted:
                                                            -------------------

                           Applicable Conversion Price:
                                                       ------------------------

                           Number of Shares of
                           Common Stock to be Issued:
                                                     --------------------------

                           Name of Holder:
                                          -------------------------------------

                           Address:
                                     ------------------------------------------

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

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

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

                           Signature:
                                     ------------------------------------------
                                     Name:
                                     Title:

Holder Requests Delivery to be made: (check one)
-----------------------------------

|_|      By Delivery of Physical Certificates to the Above Address

|_|      Through Depository Trust Corporation
         (Account ___________________________)

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