EMPLOYMENT AGREEMENT                                              EXHIBIT 10.21


                  THIS AGREEMENT made as of the 4th day of January, 1999

B E T W E E N:

                  WAVERIDER  COMMUNICATIONS  INC.,  a  corporation  incorporated
                  pursuant  to the  laws of  Nevada,  in the  United  States  of
                  America

                           (herein called the "Corporation")

                                                               OF THE FIRST PART
                           and

                  JAMES H.  CHINNICK,  residing in the Town of DeWinton,  in the
                  Province of Alberta

                           (herein called the "the Executive")

                                                              OF THE SECOND PART

                  WHEREAS the Corporation desires to employ the Executive and to
enter into an agreement (the "Employment Agreement") embodying the terms of such
employment;

         AND WHEREAS the Executive has accepted such  employment on the basis of
the terms and conditions set forth herein;

                  IN CONSIDERATION of the recitals and mutual covenants
contained herein and for other good and valuable consideration, the parties
agree as follows:

1.                EMPLOYMENT

                  The Corporation hereby employs the Executive and the Executive
hereby accepts employment with the Corporation for the term of this Employment
Agreement set forth in Section 2 below, in a position and with the duties,
responsibilities and authority as the Corporation may from time to time assign
to him including, without limitation, those duties, responsibilities and
authority more particularly set forth in Section 3 below, and upon all other
terms and conditions in this Employment Agreement set forth herein.

2.                TERM

                  The term (the "term") of the Executive's employment pursuant
to this Employment Agreement shall commence on the date first written above and
shall continue until the date which is twelve months from such date, subject to
the provisions of this Employment Agreement providing for earlier termination of
the Executive's employment in certain circumstances. Thereafter, the term shall
be automatically extended for additional one year periods unless terminated
under the provisions of section 9 hereto.



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3.                POSITION, RESPONSIBILITY

                  It is intended that the Executive shall serve as the Vice
President, Engineering of the Corporation with responsibility for performing
such duties for the Corporation as the Executive shall reasonably be directed to
perform by the President and Chief Executive Officer of the Corporation.

                  Throughout the term of this Employment Agreement, the
Executive shall devote his full business time and undivided attention during
normal business hours to the business and affairs of the Corporation, except for
vacations and except for illness or incapacity, but, subject to Section 9 and
subject to the approval of the board of directors of the Corporation, which will
not be unreasonably withheld, nothing in this Employment Agreement shall
preclude the Executive from devoting reasonable periods required for serving, as
appropriate, on boards of directors of other corporations, from engaging in
charitable and public service activities, and from managing his personal
investments, provided such activities do not materially interfere with the
performance of his duties and responsibilities under this Employment Agreement
and do not constitute a conflict of interest with respect to his employment
herein.

4.                SALARY, CASH AND STOCK COMPENSATION PLAN

                  For services rendered by the Executive during the term of this
Agreement, the Executive shall be entitled to receive an annual remuneration
package of $240,000, which shall be paid as to the sum of $10,000 (before
deductions) per month commencing as of the date hereof and a bonus in the amount
of $30,000 payable quarterly, commencing the quarter ending March 31, 1999, such
bonus to be paid upon the achievement of certain performance objectives mutually
agreed upon by the Executive and the President and Chief Executive Officer of
the Corporation and ratified by the board of directors of the Corporation.

                  The Executive's salary shall be reviewed annually and may be
adjusted taking into account, among other things, individual performance and
general business conditions. In addition, the Executive shall be eligible to
participate in the Corporation's Employee Stock Option (1997) Plan (the "Stock
Option Plan") and any successor plans thereto established by the Corporation for
the general benefit of employees. Pursuant to the Stock Option Plan, the
Executive shall be awarded options (the "Stock Options") to acquire 120,000
common shares ("Common Shares") in the capital of the Corporation at an exercise
price of US$2.50 per share, being the closing price of the Common Shares on the
OTC Bulletin Board on January 4th, 1999. The Stock Options will vest as to 25%
on each of March 31, June 30, September 30 and December 31, 1999.

5.                CAR ALLOWANCE

                  The Employer shall provide the Executive with a car allowance
of $800.00 (Cdn) per month. The Executive will be responsible to utilize this
allowance for the provision of an automobile, acceptable by the Employer for
business use, and the full costs of ongoing maintenance and repair.

6.                PERQUISITES AND BUSINESS EXPENSES

                  The Executive will be reimbursed for all reasonable expenses
incurred by him or her in connection with the conduct of the Corporation's
business upon presentation of sufficient evidence that such expenditures are
authorized expenditures pursuant to policies adopted by the board of directors
of the Corporation from time to time.

7.                BENEFIT PROGRAMS

                  The Executive will be entitled to participate in all the
Executive benefit programs of the Corporation from time to time in effect under
the terms and conditions of such programs, including, but not limited to,
pension and other retirement plans, group life insurance, hospitalization and
surgical and major medical coverages, dental insurance, sick leave, including
salary continuation arrangements, vacations and holidays, long-term disability,
and such other fringe benefits as are or may be available from time to time to
other executives of the Corporation.

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8.                VACATION

                  The Executive shall be entitled to all usual public holidays
and, in addition, to 20 business days paid vacation during each year of the
Executive's employment hereunder. Such vacation shall be utilized by the
Executive at such time or times as do not materially interfere with the ongoing
conduct of the Corporation's business and operations.

9.                TERMINATION OF EMPLOYMENT

                  (a)      the  Executive,  there  will be no  continued  salary
                           payments by the  Corporation to the Executive and any
                           rights  and  benefits  of  the  Executive  under  the
                           Executive   benefit   plans  and   programs   of  the
                           Corporation will be determined in accordance with the
                           terms of such plans and programs.

                  (b)      Death - In the  event of the  death of the  Executive
                           during  the term of this  Employment  Agreement,  the
                           Executive's  salary  will be paid to the  Executive's
                           designated  beneficiary,  and in the  absence of such
                           designation,   to   the   estate   or   other   legal
                           representatives of the Executive,  through the end of
                           the month in which death occurs.  Rights and benefits
                           of the Executive  under the  Executive  benefit plans
                           and  programs  of  the  Corporation,  including  life
                           insurance,  will be determined in accordance with the
                           terms and conditions of such plans and programs.

                  (c)      Disability  -  The   Executive's   employment   shall
                           terminate  automatically upon written notice from the
                           Corporation in the event of the  Executive's  absence
                           or  inability   to  render  the   services   required
                           hereunder due to disability,  illness,  incapacity or
                           otherwise  for an aggregate of one hundred and eighty
                           days during any 12 month period  during the term.  In
                           the  event  of any such  absence  or  inability,  the
                           Executive   shall  be   entitled   to   receive   the
                           compensation provided for herein for such period, and
                           thereafter the Executive shall be entitled to receive
                           compensation  in  accordance  with the  Corporation's
                           long-term disability plan, if any, together with such
                           compensation,  if any,  as may be  determined  by the
                           board of directors of the Corporation.

                  (e)      Termination  by the  Corporation  for  Cause - In the
                           event of a  termination  for cause,  there will be no
                           continued  salary  payments by the Corporation to the
                           Executive   and  any  rights  and   benefits  of  the
                           Executive  under  the  Executive  benefit  plans  and
                           programs of the  Corporation  will be  determined  in
                           accordance with the terms of such plans and programs.
                           For the  purposes  of this  Section  10(c) and of the
                           Executive's employment with the Corporation,  "cause"
                           shall mean that:

                           (i)      The  Executive  has  committed  a felony  or
                                    indictable   offence   or   has   improperly
                                    enriched  himself  at  the  expense  of  the
                                    Corporation   or   has   committed   an  act
                                    evidencing  dishonesty  or moral  turpitude,
                                    including  without   limitation  an  act  of
                                    theft;

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                           (ii)     The  Executive,  in carrying  out his duties
                                    hereunder,  (A) has been wilfully or grossly
                                    negligent,  or (B) has committed  wilful and
                                    gross  misconduct  or,  (C)  has  failed  to
                                    comply   with  a   clear   instructions   or
                                    directives  from the board of  directors  of
                                    the  Corporation  after having been informed
                                    of a failure to so comply;

                           (iii)    The  Executive  has breached a material term
                                    of this Employment Agreement;

                           (iv)     The  Executive  becomes  bankrupt  or in the
                                    event a  receiving  order (or any  analogous
                                    order  under  any  applicable  law)  is made
                                    against  the  Executive  or in the event the
                                    Executive  makes any general  disposition or
                                    assignment for the benefit of his creditors;
                                    or

                           (v)      The  Executive  commits any other act giving
                                    the  Corporation   cause  to  terminate  the
                                    Executive's employment,  including,  but not
                                    limited  to  chronic   alcoholism   or  drug
                                    addiction,     material    malfeasance    or
                                    non-feasance with respect to the Executive's
                                    duties hereunder.

                  Prior to any termination of the Executive for cause due to any
                  occurrence described in subparagraphs  10(c)(ii),  (iii), (iv)
                  and (v) above,  the Corporation  shall notify the Executive in
                  writing  of the  particulars  of  the  occurrence  upon  which
                  termination would be based and shall in such notice advise the
                  Executive as to whether, in the Corporation's sole discretion,
                  the default of the Executive  occasioned by such occurrence is
                  capable of being cured or  rectified  in full  without loss or
                  damage to the Corporation, in which case the Corporation shall
                  afford the Executive a reasonable period of not less than five
                  business  days in which to cure or rectify  such  default.  In
                  such event and provided the Executive  cures or rectifies such
                  default in full without loss or damage to the Corporation, the
                  Executive's employment shall not be terminated on the basis of
                  such occurrence.

         (e)      Termination by the Corporation without Cause - In the event of
                  a  termination  without  cause,  the  Employer  will provide a
                  severance  package  which will include a minimum of one year's
                  salary, plus one month's salary for each year of employment in
                  excess of  twelve  years  service,  to be  calculated  on base
                  salary and pro-rated for car allowance and bonus incentive. It
                  is agreed and understood that these amounts are reasonable and
                  include any obligations  which the employer may have or pay in
                  lieu of notice and/or severance pay pursuant to the Employment
                  Standards Act, R.S.O. 1990, c. E-14, or its counterpart in any
                  other   jurisdiction.   It  is  agreed  that  this  Employment
                  Agreement  may not be terminated  by the  Corporation  without
                  cause  without the  approval of the board of  directors of the
                  Corporation.

10.               NON-COMPETITION

                  The Executive agrees that during the period of the Executive's
employment with the Corporation and for any period of continued compensation to
the Executive by the Corporation, as outlined in Section 9 (e), the Executive
shall not engage in or participate in any business activity that competes,
directly or indirectly, in the North American market, with the businesses of the
Corporation, or its subsidiaries or affiliates.

                  For the purposes of this Section 10, the Executive shall be
deemed to "compete, directly or indirectly, with the business of the
Corporation, or its subsidiaries or affiliates" if the Executive is or becomes
engaged, otherwise than at the request of the Corporation, as an officer,
director or the Executive of, or is or becomes associated in a management or
ownership, consultant or agent, capacity with any corporation, partnership or
other enterprise or venture whose business includes the distribution of
competing products.

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                  It is the desire and intent of the parties that the provisions
of this Section 10 shall be enforceable to the fullest extent permissible under
the laws and public policies applied in each jurisdiction in which enforcement
is sought. Accordingly, if any particular portion of this Section 10 is
adjudicated unenforceable in any jurisdiction such adjudication shall apply only
in that particular jurisdiction in which such adjudication is made.

11.               NON-SOLICITATION

                  The Executive agrees that for a period of one year following
the termination of the Executive's employment with the Corporation for any
reason whatsoever, the Executive will not, whether as principal, agent, the
Executive, employer, director, officer, shareholder or in any other individual
or representative capacity, solicit or induce employees, consultants, suppliers
or customers of the Corporation, either directly or indirectly, to leave their
employment or engagement with the Corporation or otherwise sever or alter their
association with the Corporation or its respective subsidiaries or affiliates.

12.               CONFIDENTIAL INFORMATION

                  All confidential records, material and information and copies
thereof and any and all trade secrets concerning the business or affairs of the
Corporation or any of its affiliates obtained by the Executive in the course and
by the reason of his employment shall remain the exclusive property of the
Corporation. During the Executive's employment or at any time thereafter, the
Executive shall not divulge the contents of such confidential records or any of
such confidential information or trade secrets to any person or persons, and the
Executive shall not, following the termination of his employment hereunder, for
any reason use the contents of such confidential records or other confidential
information or trade secrets for any purpose whatsoever.

13.               WITHHOLDING

                  Anything to the contrary notwithstanding, all payments
required to be made by the Corporation hereunder to the Executive or his estate
or beneficiaries, shall be subject to the withholding of such amounts relating
to taxes as the Corporation may reasonably determine, after consultation with
the Executive, it should withhold pursuant to any applicable law or regulation.
In lieu of withholding such amounts, in whole or in part, the Corporation may,
in its sole discretion, accept other provisions for payment of taxes and
withholdings as required by law, provided the Corporation is satisfied that all
requirements of law affecting the Corporation's responsibilities to withhold
have been complied with.

14.               ENTIRE AGREEMENT

                  This Employment Agreement contains the entire agreement
between the parties hereto with respect to matters herein and supersedes all
prior agreements and understandings, oral or written, between the parties hereto
relating to such matters.

15.               ASSIGNMENT

                  Except as herein expressly provided, the respective rights and
obligations of the Executive and the Corporation under this Employment Agreement
shall not be assignable by either party without the written consent of the other
party and shall enure to the benefit of and be binding upon the Executive and
the Corporation and their permitted successors or assigns, including, in the
case of the Corporation, any other corporation or entity with which the
Corporation may be merged or otherwise combined or which may acquire the
Corporation or its assets in whole or in substantial part, and, in the case of
the Executive, his estate or other legal representatives. Nothing herein
expressed or implied is intended to confer on any person other than the parties
hereto any rights, remedies, obligations or liabilities under or by reason of
this Employment Agreement.

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16.               APPLICABLE LAW

                  This Employment Agreement shall be deemed a contract under,
and for all purposes shall be governed by and construed in accordance with, the
laws of the Province of Ontario without regard to the conflicts of laws rules
thereof. The Corporation and the Executive hereby each irrevocably consent and
attorn to the jurisdiction of the courts of the Province of Ontario with respect
to any dispute or proceeding arising in connection with this Employment
Agreement.

17.               AMENDMENT OR MODIFICATION: WAIVER

                  No provision of this Employment Agreement may be amended or
waived unless such amendment or waiver is authorized by the Corporation
(including any authorized officer or committee of the board of directors) and is
in writing signed by the Executive and by a duly authorized officer of the
Corporation. Except as otherwise specifically provided in this Employment
Agreement, no waiver by either party hereto of any breach by the other party of
any condition or provision of this Employment Agreement to be performed by such
other party shall be deemed a waiver of a similar or dissimilar breach,
condition or provision at the same time or at any prior or subsequent time.

18.               RESIGNATIONS

                  The Executive hereby agrees that, upon termination of this
employment for any reason whatsoever, the Executive shall thereupon be deemed,
upon the request of the Corporation, to have immediately resigned any position
the Executive may have as an officer and/or director of the Corporation,
together with any other office, position or directorship which the Executive may
hold with any of the Corporation's subsidiaries or related entities in
connection with or arising from the performance of the Executive duties of
employment under this Employment Agreement. In such event, the Executive shall,
at the reasonable request of the Corporation, forthwith execute any and all
documents appropriate to evidence such resignations which are consistent with
the terms of this Employment Agreement.

19.               PROVISIONS SURVIVING TERMINATION

                  It is expressly agreed that notwithstanding termination of the
Executive's employment with and by the Corporation for any reason or cause or in
any circumstances whatsoever, such termination shall be without prejudice to the
rights and obligations of the Executive and the Corporation, respectively, in
relation or arising up to the time up to and including the date of termination;
and the provisions of Sections 9(d) and (e), 10, 11, 12, 13, 16, 18 and 19 of
this Employment Agreement, all of which shall remain and continue in full force
and effect unless and until the board of directors of the Corporation at its
absolute discretion resolves otherwise and so notifies the Executive in writing.

20.               SEVERABILITY

                  In the event that any provision or portion of this Employment
Agreement shall be determined to be invalid or unenforceable for any reason, the
remaining provisions and portions of this Employment Agreement shall be
unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law.

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21.               COUNTERPARTS

                  This Employment Agreement may be executed in counterparts,
each of which shall be an original, but all of which together shall constitute
one and the same instrument.

22.               REFERENCES

                  In the event of the Executive's death or a judicial
determination of his incompetency, reference in this Employment Agreement to the
Executive shall be deemed, where appropriate, to refer to his beneficiary or
beneficiaries.

23.               CAPTIONS

                  Captions to the Sections of this Employment Agreement are
solely for convenience and no provision of this Agreement is to be construed by
reference to the captions of that Section.

24.               CURRENCY

                  Unless otherwise specified herein, all dollar amounts referred
to herein shall mean Canadian dollars.

                  IN WITNESS WHEREOF this Employment Agreement has been executed
by a duly authorized officer of the Corporation and the Executive as of the day
first above written.


                                                  WAVERIDER COMMUNICATIONS INC.

                                                  By:      /s/ D. B. Sinclair
                                                           ---------------------
                                                           D. Bruce Sinclair
                                                           President and Chief
                                                           Executive Officer
SIGNED, SEALED and                          )
DELIVERED in the presence of:               )
                                            )
                                            )
                                            )
                                            )
/s/ M. McTaggart                            )              /s/ James H. Chinnick
---------------------------------------                    --------------------
Witness                                                    JAMES H. CHINNICK