ex1051.htm


    Exhibit
10.51

     

     

    EMPLOYMENT
AGREEMENT

    


    


    


    THIS EMPLOYMENT AGREEMENT is
made effective as of the 1st day of June, 2008 (the “Effective
Date”).

    


    


    AMONG:

    WPCS INTERNATIONAL INCORPORATED,
a corporation formed pursuant to the laws of the State of Delaware and
having an office for business located at One East Uwchlan Avenue, Exton, PA
19341 ("Employer");

    


    AND

    


    RICHARD SCHUBIGER, an
individual having an address at Quality Communications, 1985 Swarthmore Avenue,
Lakewood, NJ 08701 (“Employee”)

    


    


    WHEREAS, Employee has agreed
to continue to serve as an Employee of Employer, and Employer has agreed to hire
Employee as such, pursuant to the terms and conditions of this Employment
Agreement (the “Agreement”).

    


    NOW THEREFORE THIS AGREEMENT
WITNESSETH THAT in consideration of the premises and the mutual
covenants, agreements, representations and warranties contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Employee and Employer hereby agree as follows:

    


    ARTICLE
1

    EMPLOYMENT

    


    Employer
hereby affirms, renews and extends the employment of Employee as Executive Vice
President, and Employee hereby affirms, renews and accepts such employment by
Employer for the “Term” (as defined in Article 3 below), upon the terms and
conditions set forth herein.

    


    ARTICLE
2

    DUTIES

    


    During
the Term, Employee shall serve Employer faithfully, diligently and to the best
of his ability, under the direction and supervision of the President of Employer
and shall use his best efforts to promote the interests and goodwill of Employer
and any affiliates, successors, assigns, subsidiaries, and/or future purchasers
of Employer. Employee shall render such services during the Term at Employer’s
principal place of business or at such other place of business as may be
determined by the President of Employer, as Employer may from time to time
reasonably require of him, and shall devote all of his business time to the
performance thereof. Employee shall have those duties and powers as generally
pertain to each of the offices of which he holds, as the case may be, subject to
the control of the President.

    


    ARTICLE
3

    TERM

    


    The
“Term” of this Agreement shall commence on the Effective Date and continue
thereafter for a term of three (3) years, as may be extended or earlier
terminated pursuant to the terms and conditions of this Agreement. The Term of
this Agreement shall automatically renew for successive one (1) year periods
unless, prior to the 30th
calendar day preceding the expiration of the then existing Term, either Employer
or Employee provides written notice to the other that it elects not to renew the
Term. Upon delivery of such notice, this Agreement shall continue until
expiration of the Term, whereupon this Agreement shall terminate and neither
party shall have any further obligation thereafter arising under this Agreement,
except as explicitly set forth herein to the contrary.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    ARTICLE
4

    COMPENSATION

    Salary

    


    4.1

    Employer
shall pay to Employee through the Quality Communications subsidiary an annual
salary (the “Salary”) of Two Hundred, Twenty-Five Thousand Dollars
($225,000.00), payable in equal installments at the end of such regular payroll
accounting periods as are established by Employer, or in such other installments
upon which the parties hereto shall mutually agree, and in accordance with
Employer’s usual payroll procedures, but no less frequently than
monthly.

    


    Benefits

    


    4.2

    During
the Term, Employee shall be entitled to participate in all medical and other
employee benefit plans, including vacation, sick leave, retirement accounts and
other employee benefits provided by the Quality Communications subsidiary to
similarly situated employees on terms and conditions no less favorable than
those offered to such employees. Such participation shall be subject to the
terms of the applicable plan documents, Employer’s generally applicable
policies, and the discretion of the Board of Directors or any administrative or
other committee provided for in, or contemplated by, such plan.

    


    Expense
Reimbursement

    


    4.3

    Employer
shall reimburse Employee through the Quality Communications subsidiary for
reasonable and necessary expenses incurred by him on behalf of Employer in the
performance of his duties hereunder during the Term in accordance with
Employer's then customary policies, provided that such expenses are adequately
documented.

    


    Automobile

    


    4.4

    Employee
shall be entitled to the full-time use of an automobile owned or leased by the
Quality Communications subsidiary.  In addition, Employer shall
reimburse Employee through the Quality Communications subsidiary for all
maintenance and gasoline expenses associated with the automobile, provided that
such expenses are adequately documented.

    


    Bonus

    


    
      4.5  

    

    In
addition to the Salary, Employee shall be entitled to receive through the
Quality Communications subsidiary an annual bonus equal to 3% (the "Bonus") of
the consolidated annual operating income, before the deduction of interest and
taxes of designated subsidiaries as assigned by Employer.  The amount
of the Bonus shall be determined based upon the operating income reported in the
financial statements of each designated subsidiary, as calculated based on U.S.
generally accepted accounting principles and as audited by the Employer’s
accounting firm at year end. Any Bonus amount will be payable within thirty (30)
days from completion of the audit. Employee shall have the right to review and
independently verify the conclusions of any audit by delivering notice in
writing to Employer within 30 days after receipt of such audit indicating that
Employee wishes to exercise his right of review and verification. Within 10
business days after receipt of any such notice, Employer shall make available to
Employee and his representatives, at reasonable times during normal business
hours, the books and records of Employer which are reasonably necessary to
conduct such review and verification. Employee shall cause such review to be
conducted and concluded as quickly as reasonably practicable and in such a
manner so as not to unreasonably interfere with the business and operations of
Employer. Any representatives conducting such review shall, prior to being given
access to such books and records, be required to enter into confidentiality and
non-disclosure agreements with Employer on terms and conditions satisfactory to
Employer, acting reasonably. If Employee disputes the results of the audit, he
shall, within 20 days after notice is delivered by Employee to Employer that
there exists a dispute, be submitted to arbitration as set forth below. Employer
can assign subsidiaries at its sole discretion.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Arbitration

    


    4.6

    Any
unresolved disputes in regards to the Bonus due from Employer to Employee will
be subject to arbitration by an independent chartered accountant mutually chosen
by Employer and Employee at an expense equally borne by both parties. The
parties shall, within 20 days after appointment of the Arbitrator present their
written position and related evidence with respect to the unresolved
disputes.  The Arbitrator shall review evidence accordingly and submit
a written decision which shall be final and binding on the parties within 20
days after submission of such evidence.. The Arbitrator shall comply, and the
arbitration shall be conducted in accordance with, the Commercial Arbitration
Rules of American Arbitration Association then in force.

    


    


    ARTICLE
5

    OTHER
EMPLOYMENT

    


    During
the Term of this Agreement, Employee shall devote substantially all of his
business and professional time and effort, attention, knowledge, and skill to
the management, supervision and direction of Employer’s business and affairs as
Employee’s highest professional priority. Except as provided below, Employer
shall be entitled to all benefits, profits or other issues arising from or
incidental to all work, services and advice performed or provided by Employee.
Provided that the activities listed below do not materially interfere with the
duties and responsibilities under this Agreement, nothing in this Agreement
shall preclude Employee from devoting reasonable periods required
for:

    


    
      	
               
      

            	
              (a)

            	
              Serving
      as a member of any organization involving no conflict of interest with
      Employer, provided that Employee must obtain the written consent of
      Employer;

            


    

    


    
      	
               
      

            	
              (b)

            	
              Serving
      as a consultant in his area of expertise to government, commercial and
      academic panels where it does not conflict with the interests of Employer;
      and

            


    

    


    
      	
               
      

            	
              (c)

            	
              Managing
      his personal investments or engaging in any other non-competing
      business

            


    

    


    


    ARTICLE
6

    CONFIDENTIAL
INFORMATION/INVENTIONS

    


    Confidential
Information

    


    6.1

    Employee
shall not, in any manner, for any reasons, either directly or indirectly,
divulge or communicate to any person, firm or corporation, any confidential
information concerning any matters not generally known or otherwise made public
by Employer which affects or relates to Employer’s business, finances, marketing
and/or operations, research, development, inventions, products, designs, plans,
procedures, or other data (collectively, “Confidential Information”) except in
the ordinary course of business or as required by applicable law. Without regard
to whether any item of Confidential Information is deemed or considered
confidential, material, or important, the parties hereto stipulate that as
between them, to the extent such item is not generally known, such item is
important, material, and confidential and affects the successful conduct of
Employer’s business and goodwill, and that any breach of the terms of this
Section 6.1 shall be a material and incurable breach of this Agreement.
Confidential Information shall not include information in the public domain at
the time of the disclosure of such information by Employee or information that
is disclosed by Employee with the prior consent of Employer.

    


    Documents

    


    6.2

    Employee
further agrees that all documents and materials furnished to Employee by
Employer and relating to the Employer’s business or prospective business are and
shall remain the exclusive property of Employer. Employee shall deliver all such
documents and materials, not copied, to Employer upon demand therefore and in
any event upon expiration or earlier termination of this Agreement. Any payment
of sums due and owing to Employee by Employer upon such expiration or earlier
termination shall be conditioned upon returning all such documents and
materials, and Employee expressly authorizes Employer to withhold any payments
due and owing pending return of such documents and materials.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    


    Inventions

    


    6.3

    All
ideas, inventions, and other developments or improvements conceived or reduced
to practice by Employee, alone or with others, during the Term of this
Agreement, whether or not during working hours, that are within the scope of the
business of Employer or that relate to or result from any of Employer’s work or
projects or the services provided by Employee to Employer pursuant to this
Agreement, shall be the exclusive property of Employer. Employee agrees to
assist Employer, at Employer’s expense, to obtain patents and copyrights on any
such ideas, inventions, writings, and other developments, and agrees to execute
all documents necessary to obtain such patents and copyrights in the name of
Employer.

    


    Disclosure

    


    6.4

    During
the Term, Employee will promptly disclose to the Board of Directors of Employer
full information concerning any interest, direct or indirect, of Employee (as
owner, shareholder, partner, lender or other investor, director, officer,
employee, consultant or otherwise) or any member of his immediate family in any
business that is reasonably known to Employee to purchase or otherwise obtain
services or products from, or to sell or otherwise provide services or products
to, Employer or to any of its suppliers or customers.

    


    


    ARTICLE
7

    COVENANT
NOT TO COMPETE

    


    Except as
expressly permitted in Article 5 above, during the Term of this Agreement, (a)
Employee shall not engage, directly or indirectly, in any business or activity
competitive to any business or activity engaged in, or proposed to be engaged
in, by Employer or (b) soliciting or taking away or interfering with any
contractual relationship of any employee, agent, representative, contractor,
supplier, vendor, customer, franchisee, lender or investor of Employer, or
using, for the benefit of any person or entity other than Employer, any
Confidential Information of Employer. The foregoing covenant prohibiting
competitive activities shall survive the termination of this Agreement and shall
extend, and shall remain enforceable against Employee, for the period of one (1)
year following the date this Agreement is terminated. In addition, during the
one-year period following such expiration or earlier termination, neither
Employee nor Employer shall make or permit the making of any negative statement
of any kind concerning Employer or its affiliates, or their directors, officers
or agents or Employee.

    


    


    ARTICLE
8

    SURVIVAL

    


    Employee
agrees that the provisions of Articles 6, 7 and 9 shall survive expiration or
earlier termination of this Agreement for any reasons, whether voluntary or
involuntary, with or without cause, and shall remain in full force and effect
thereafter.  Notwithstanding the foregoing, if this Agreement is
terminated upon the dissolution of Employer, the filing of a petition in
bankruptcy by Employer or upon an assignment for the benefit of creditors of the
assets of Employer, Articles 6, 7 and 9 shall be of no further force or
effect.

    


    


    ARTICLE
9

    INJUNCTIVE
RELIEF

    


    Employee
acknowledges and agrees that the covenants and obligations of Employee set forth
in Articles 6 and 7 with respect to non-competition, non-solicitation,
confidentiality and Employer’s property relate to special, unique and
extraordinary matters and that a violation of any of the terms of such covenants
and obligations will cause Employer irreparable injury for which adequate
remedies are not available at law. Therefore, Employee agrees that Employer
shall be entitled to an injunction, restraining order or such other equitable
relief (without the requirement to post bond) as a court of competent
jurisdiction may deem necessary or appropriate to restrain Employee from
committing any violation of the covenants and obligations referred to in this
Article 9. These injunctive remedies are cumulative and in addition to any other
rights and remedies Employer may have at law or in equity.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
10

    TERMINATION

    


    Termination
by Employee

    


    10.1

    Employee
may terminate this Agreement for Good Reason at any time upon 30 days’ written
notice to Employer, provided the Good Reason has not been cured within such
period of time.

    


    Good
Reason

    


    10.2

    In this
Agreement, “Good Reason” means, without Employee’s prior written consent, the
occurrence of any of the following events, unless Employer shall have fully
cured all grounds for such termination within thirty (30) days after Employee
gives notice thereof:

    


    (i)           any
reduction in his then-current Salary;

    


    
      	
               
      

            	
              (ii)

            	
              any
      material failure to timely grant, or timely honor, any equity or long-term
      incentive award;

            


    

    


    
      	
               
      

            	
              (iii)

            	
              failure
      to pay or provide required compensation and
  benefits;

            


    

    


    
      	
               
      

            	
              (iv)

            	
              any
      failure to appoint, elect or reelect him to the position of Executive Vice
      President of Employer; the removal of him from such position; or any
      changes in the reporting structure so that Employee reports to someone
      other than the President of
Employer;

            


    

    


    
      	
               
      

            	
              (v)

            	
              any
      material diminution in his title or duties or the assignment to him of
      duties not customarily associated with Employee’s position as Executive
      Vice President of Employer;

            


    

    


    
      	
               
      

            	
              (vi)

            	
              any
      relocation of Employee’s office as assigned to him by Employer, to a
      location more than 25 miles from the assigned
  location;

            


    

    


    
      	
               
      

            	
              (vii)

            	
              the
      failure of Employer to obtain the assumption in writing of its obligation
      to perform the Employment Agreement by any successor to all or
      substantially all of the assets of Employer or upon a merger,
      consolidation, sale or similar transaction of Employer
  or;

            


    

    


    
      	
              (viii)  

            	
              the
      voluntary or involuntary dissolution of Employer, the filing of a petition
      in bankruptcy by Employer or upon an assignment for the benefit of
      creditors of the assets of
Employer.

            


    

    


    The
written notice given hereunder by Employee to Employer shall specify in
reasonable detail the cause for termination, and such termination notice shall
not be effective until thirty (30) days after Employer’s receipt of such notice,
during which time Employer shall have the right to respond to Employee’s notice
and cure the breach or other event giving rise to the termination.

    


    Termination
by Employer

    


    10.3

    Employer
may terminate its employment of Employee under this Agreement for cause at any
time by written notice to Employee. For purposes of this Agreement, the term
“cause” for termination by Employer shall be (a) a conviction of or plea of
guilty or nolo contendere
by Employee to a felony, or any crime involving fraud or embezzlement;
(b) the refusal by Employee to perform his material duties and obligations
hereunder; (c) Employee’s willful and intentional misconduct in the performance
of his material duties and obligations; or (d) if Employee or any member of his
family makes any personal profit arising out of or in connection with a
transaction to which Employer is a party or with which it is associated without
making disclosure to and obtaining the prior written consent of Employer. The
written notice given hereunder by Employer to Employee shall specify in
reasonable detail the cause for termination. In the case of a termination for
the causes described in (a) and (d) above, such termination shall be effective
upon receipt of the written notice. In the case of the causes described in (b)
and (c) above, such termination notice shall not be effective until thirty (30)
days after Employee’s receipt of such notice, during which time Employee shall
have the right to respond to Employer’s notice and cure the breach or other
event giving rise to the termination.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    


    Severance

    


    10.4

    Upon a
termination of this Agreement without Good Reason by Employee or with cause by
Employer, Employer shall pay to Employee all accrued and unpaid compensation as
of the date of such termination, subject to the provision of Section 6.2. Upon a
termination of this Agreement with Good Reason by Employee or without cause by
Employer, Employer shall pay to Employee all accrued and unpaid compensation and
expense reimbursement as of the date of such termination and the “Severance
Payment.”  The Severance Payment shall be payable in a lump sum,
subject to Employer’s statutory and customary withholdings.  If the
termination of Employee hereunder is by Employee with Good Reason, the Severance
Payment shall be paid by Employer within five (5) business days of the
expiration of any applicable cure period. If the termination of Employee
hereunder is by Employer without cause, the Severance Payment shall be paid by
Employer within five (5) business days of termination.  The “Severance
Payment” shall equal the amount of the Salary payable to Employee under Section
4.1 of this Agreement from the date of such termination until the end of the
Term of this Agreement (prorated for any partial month).

    


    Termination
Upon Death

    


    10.5

    If
Employee dies during the Term of this Agreement, this Agreement shall terminate,
except that Employee’s legal representatives shall be entitled to receive any
earned but unpaid compensation or expense reimbursement due hereunder through
the date of death.

    


    Termination
Upon Disability

    


    10.6

    If,
during the Term of this Agreement, Employee suffers and continues to suffer from
a “Disability” (as defined below), then Employer may terminate this Agreement by
delivering to Employee thirty (30) calendar days’ prior written notice of
termination based on such Disability, setting forth with specificity the nature
of such Disability and the determination of Disability by Employer. For the
purposes of this Agreement, “Disability” means Employee’s inability, with
reasonable accommodation, to substantially perform Employee’s duties, services
and obligations under this Agreement due to physical or mental illness or other
disability for a continuous, uninterrupted period of sixty (60) calendar days or
ninety (90) days during any twelve month period.  Upon any such
termination for Disability, Employee shall be entitled to receive any earned but
unpaid compensation or expense reimbursement due hereunder through the date of
termination.

    


    


    ARTICLE
11

    PERSONNEL
POLICIES, CONDITIONS, AND BENEFITS

    


    Except as
otherwise provided herein, Employee’s employment shall be subject to the
personnel policies and benefit plans which apply generally to Employer’s
employees as the same may be interpreted, adopted, revised or deleted from time
to time, during the Term of this Agreement, by Employer in its sole discretion.
During the Term hereof, Employee shall be entitled to vacation during each year
of the Term at the rate of four (4) weeks per year. Employee shall take such
vacation at a time approved in advance by Employer, which approval will not be
unreasonably withheld but will take into account the staffing requirements of
Employer and the need for the timely performance of Employee's
responsibilities.

    


    


    ARTICLE
12

    BENEFICIARIES
OF AGREEMENT

    


    This
Agreement shall inure to the benefit of Employer and any affiliates, successors,
assigns, parent corporations, subsidiaries, and/or purchasers of Employer as
they now or shall exist while this Agreement is in effect.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    ARTICLE
13

    GENERAL
PROVISIONS

    


    No
Waiver

    


    13.1

    No
failure by either party to declare a default based on any breach by the other
party of any obligation under this Agreement, nor failure of such party to act
quickly with regard thereto, shall be considered to be a waiver of any such
obligation, or of any future breach.

    


    Modification

    


    13.2

    No waiver
or modification of this Agreement or of any covenant, condition, or limitation
herein contained shall be valid unless in writing and duly executed by the
parties to be charged therewith.

    


    Choice
of Law/Jurisdiction

    


    13.3

    This
Agreement shall be governed by and construed in accordance with the laws of the
State of New Jersey, without regard to any conflict-of-laws principles. Employer
and Employee hereby consent to personal jurisdiction before all courts in the
State of New Jersey, and hereby acknowledge and agree that New Jersey is and
shall be the most proper forum to bring a complaint before a court of
law.

    


    Entire
Agreement

    


    13.4

    This
Agreement embodies the whole agreement between the parties hereto regarding the
subject matter hereof and there are no inducements, promises, terms, conditions,
or obligations made or entered into by Employer or Employee other than contained
herein.

    


    Severability

    


    13.5

    All
agreements and covenants contained herein are severable, and in the event any of
them, with the exception of those contained in Articles 1 and 4 hereof, shall be
held to be invalid by any competent court, this Agreement shall be interpreted
as if such invalid agreements or covenants were not contained
herein.

    


    Headings

    


    13.6

    The
headings contained herein are for the convenience of reference and are not to be
used in interpreting this Agreement.

    


    Independent
Legal Advice

    


    13.7

    Employer
has obtained legal advice concerning this Agreement and has requested that
Employee obtain independent legal advice with respect to same before executing
this Agreement.  Employee, in executing this Agreement, represents and
warranties to Employer that he has been so advised to obtain independent legal
advice, and that prior to the execution of this Agreement he has so obtained
independent legal advice, or has, in his discretion, knowingly and willingly
elected not to do so.

    


    No
Assignment

    


    13.8

    Employee
may not assign, pledge or encumber his interest in this Agreement nor assign any
of his rights or duties under this Agreement without the prior written consent
of Employer.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    


    


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

    


    
      
        	 	Employer:	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Andrew
      Hidalgo	 
	 	 	Andrew
      Hidalgo	 
	 	 	President	 
	 	 	WPCS
      International Incorporated	 


      

    

    

      
        	 	Employee:	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Richard
      Schubiger	 
	 	 	Richard
      Schubiger