Document:

EXECUTIVE
EMPLOYMENT AGREEMENT

This EXECUTIVE
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the 17th day of December 2013
(the “Effective Date”), by and between BTX Trader LLC, a Delaware limited liability company (the “Company”),
with an address at One East Uwchlan Avenue, Suite 301, Exton, PA 19341, and Ilya Subkhankulov (“Executive”).

W I T N E S S E T H:

WHEREAS,
Executive desires to be employed by the Company as its Chief Operating Officer and the Company wishes to employ Executive in such
capacity;

WHEREAS,
on or about the time that Executive becomes employed by the Company, the Company shall be acquired by WPCS International Incorporated
(“WPCS” or the “Member”), a publicly traded Delaware corporation whose shares of common stock
are traded on The NASDAQ Capital Market and the Company shall become a wholly owned subsidiary of WPCS (the “Acquisition”).

NOW, THEREFORE,
the parties mutually agree as follows:

 

1.                  
Employment. The Company hereby employs the Executive
and the Executive hereby accepts employment as an executive of the Company, subject to the terms and conditions set forth in this
Agreement.

 2.           Duties.
The Executive shall serve as the Chief Operating Officer of the Company, with such duties, responsibilities and authority as are
commensurate and consistent with his position, as may be, from time to time, assigned to him by the Chief Executive Officer or
the Board of Directors (the “Board”) of the Member. The Executive shall report directly to the Chief Executive
Officer and the Board of WPCS. During the Term (as defined in Section 3), the Executive shall devote his full business time and
efforts to the performance of his duties hereunder unless otherwise authorized by the Member. Notwithstanding the foregoing, the
expenditure of reasonable amounts of time by the Executive for the making of passive personal investments, the conduct of private
business affairs and charitable and professional activities shall be allowed, provided such activities do not materially interfere
with the services required to be rendered to the Company hereunder and do not violate the confidentiality provisions set forth
in Section 8 below.  For the avoidance of doubt, Executive may invest or be involved with other ventures and investments
(hereafter “Other Investments”), so long as all Other Investments are disclosed to the Member and the Member
determines that Executive’s involvement in any Other Investment does not contravene any provisions of this Agreement or will
breach any of Executive’s duties to Company, the Member or its stockholders.

 

3.           Term
of Employment. The term of the Executive’s employment hereunder, unless sooner terminated as provided herein (the “Initial
Term”), shall be for a period of one (1) year from the date hereof. The term of this Agreement shall automatically be
extended for additional terms of one (1) year each (each a “Renewal Term”) unless either party gives prior written
notice of non-renewal to the other party no later than three (3) months prior to the expiration of the Initial Term (“Non-Renewal
Notice”), or the then current Renewal Term, as the case may be. For purposes of this Agreement, the Initial Term and
any Renewal Term are hereinafter collectively referred to as the “Term.”

 

 
4.           Compensation of Executive.

 

(a)           The
Company shall pay the Executive a signing bonus of $66,667 (the “Signing Bonus”) by wire transfer of immediately
available funds to an account designated by the Executive upon the closing of the Acquisition.

 

(b)           The
Company shall pay the Executive as compensation for his services hereunder, in equal semi-monthly or bi-weekly installments during
the Term, the sum of $130,000 per annum (the “Base Salary”), less such deductions as shall be required to be
withheld by applicable law and regulations. The Board of Directors of the Member shall review the Base Salary on an annual basis
and has the right but not the obligation to increase the Base Salary.

 

    	 

    	 

    

 

 

(c)           In
addition to the Signing Bonus set forth in Section 4(a) and the Base Salary set forth in Section 4(b), above, after the consummation
of the Acquisition, the Executive shall be entitled to receive an annual cash bonus (“Annual Bonus”) in an amount
equal to up to one hundred (100%) percent of his then-current Base Salary if the Company meets or exceeds criteria adopted by the
Compensation Committee of the Board of the Member (the “Compensation Committee”) for earning Bonuses which shall
be adopted by the Compensation Committee annually.  Annual Bonuses shall be paid by the Company to the Executive promptly
after determination that the relevant targets have been met, it being understood that the attainment of any financial targets associated
with any bonus shall not be determined until following the completion of WPCS’s annual audit and public announcement of such
results and shall be paid promptly following WPCS’s announcement of earnings.   The Compensation Committee may
provide for lesser or greater percentage Annual Bonus payments for Executive upon achievement of partial or additional criteria
established or determined by the Compensation Committee from time to time.  For the avoidance of doubt, if Executive
is employed upon expiration of the term of this Agreement, he shall be entitled to the Annual Bonus for such last year on a pro-rata
basis through the last date of employment, even if he is not employed by the Company on the date the Annual Bonus is paid for such
last year.

 

(d)         Equity
Awards. Executive shall be eligible for such grants of awards under stock option or other equity incentive plans of WPCS adopted
by the Board of WPCS and approved by the stockholders of WPCS (or any successor or replacement plan adopted by the Board of WPCS
and approved by the stockholders of WPCS) (the “Plan”) as the Compensation Committee of WPCS may from time to
time determine (the “Share Awards”). Share Awards shall be subject to the applicable Plan terms and conditions,
provided, however, that Share Awards shall be subject to any additional terms and conditions as are provided herein or in any award
certificate(s), which shall supersede any conflicting provisions governing Share Awards provided under the Plan. Upon the adoption
by the Board of WPCS of a new Plan which is approved by the stockholders of WPCS, Executive shall be entitled to receive, upon
approval by the Board of WPCS, in its sole discretion, a stock option grant to purchase up to 2.667% of the outstanding common
stock of WPCS, calculated as of the date of such grant (the “Initial Option Grant”), which shall vest in four
equal annual installments, beginning on the one year anniversary of the date of the Initial Option Grant. The Initial Option Grant
and any other Share Awards issued to Executive by WPCS under the terms of this Agreement, as well as any other securities of WPCS
held by the Executive, shall be subject to terms of a lockup agreement, in the form attached hereto as Exhibit A.

 

(e)  The
Company shall pay or reimburse the Executive for all reasonable out-of-pocket expenses actually incurred or paid by the Executive
in the course of his employment, consistent with the Company’s policy for reimbursement of expenses from time to time.

 

(f)    The
Executive shall be entitled to participate in such pension, profit sharing, group insurance, hospitalization, and group health
and benefit plans and all other benefits and plans, including perquisites, if any, as the Company or WPCS provides to their executives
or executives of subsidiaries (as the case may be), including group family health insurance coverage which shall be paid by the
Company (the “Benefit Plans”).  If at any time during the Term, the Company or WPCS does not provide
its executives or executives of its subsidiaries (as the case may be) with health insurance (including hospitalization) under a
Benefit Plan, Executive shall be entitled to secure such health insurance for himself and his immediate family (i.e., spouse and
natural born children) and the Company shall reimburse Executive for the cost of such insurance promptly after payment by the Executive
for such insurance.  For avoidance of doubt, Executive shall be entitled to secure health insurance from high quality
companies such as Blue Cross/Blue shield, United or Emblem and the ability to select a no or low deductible plan.  If
Executive secures such health insurance, such health insurance shall be deemed to be a Benefit Plan hereunder.

 

 

 
5.           Termination.

 

(a)           This
Agreement and the Executive’s employment hereunder shall terminate upon the happening of any of the following events:

 

(i)           upon
the Executive’s death;

    	 

    	 

    

 

(ii)           upon
the Executive’s “Total Disability” (as herein defined);

 

(iii)           upon
the expiration of the Initial Term of this Agreement or any Renewal Term thereof, if either party has provided a timely Non-Renewal
Notice in accordance with Section 3, above;

 

(iv)           at
the Executive’s option, upon ninety (90) days prior written notice to the Company;

 

(v)           at
the Executive’s option, in the event of an act by the Company, defined in Section 5(c), below, as constituting “Good
Reason” for termination by the Executive; and

 

(vi)           at
the Company’s option, in the event of an act by the Executive, defined in Section 5(d), below, as constituting “Cause”
for termination by the Company.

 

(b)           For
purposes of this Agreement, the Executive shall be deemed to be suffering from a “Total Disability” if the Executive
has failed to perform his regular and customary duties to the Company for a period of 180 days out of any 360-day period and if
before the Executive has become “Rehabilitated” (as herein defined) a majority of the members of the Board of the Member,
exclusive of the Executive, if Executive is then serving on the Board, vote to determine that the Executive is mentally or physically
incapable or unable to continue to perform such regular and customary duties of employment. As used herein, the term “Rehabilitated”
shall mean such time as the Executive is willing, able and commences to devote his time and energies to the affairs of the Company
to the extent and in the manner that he did so prior to his Total Disability.

 

(c)           For
purposes of this Agreement, the term “Good Reason” shall mean that the Executive has resigned due to (i) any
diminution of duties inconsistent with Executive’s title, authority, duties and responsibilities (including, without limitation,
a change in the chain of reporting); (ii) any reduction of or failure to pay Executive compensation provided for herein, except
to the extent Executive consents in writing to any reduction, deferral or waiver of compensation, which non-payment continues for
a period of fifteen (15) days following written notice to the Company by Executive of such non-payment; (iii) any relocation of
the principal location of Executive’s employment within 15 miles outside of New York, New York without the Executive’s
prior written consent; (iv) the consummation of any Change in Control Transaction (as defined below); or (v) any material violation
by the Company of its obligations under this Agreement that is not cured within sixty (60) days after receipt of written notice
thereof from the Executive.  For purposes of this Agreement, the term “Change in Control Transaction”
means the sale of the Company to an un-affiliated person or entity or group of un-affiliated persons or entities pursuant to which
such party or parties acquire (i) capital of the Company representing at least fifty percent (50%) of outstanding capital or sufficient
to elect a majority of the Board or of the board of directors of the Company (whether by merger, consolidation, sale or transfer
of interests (other than a merger where the Company is the surviving entity and the members and directors of the Company prior
to the merger constitute a majority of the members and directors, respectively, of the surviving entity (or its parent) or (ii)
all or substantially all of the Company’s assets determined on a consolidated basis.

 

(d)           For
purposes of this Agreement, the term “Cause” shall mean:

 

(i)conviction
of a felony or a crime involving fraud or moral turpitude; or

(ii)theft, material
act of dishonesty or fraud, intentional falsification of any employment or Company records, or commission of any criminal act which
impairs Executive’s ability to perform appropriate employment duties for the Company; or

(iii)intentional
or reckless conduct or gross negligence materially harmful to the Company, the Member or the successor to the Company after a Change
in Control , including violation of a non-competition or confidentiality agreement; or

(iv)willful
failure to follow lawful and reasonable instructions of the person or body to which Executive reports; or

    	 

    	 

    

 

(v)gross negligence
or willful misconduct in the performance of Executive’s assigned duties; or

 

(vi) any material
breach of this Agreement by Executive.

 

 

6.           Effects
of Termination.

 

(a)           Upon
termination of the Executive’s employment pursuant to Section 5(a)(i) or (ii), in addition to the accrued but unpaid compensation
and vacation pay through the date of death or Total Disability and any other benefits accrued to him under any Benefit Plans outstanding
at such time and the reimbursement of documented, unreimbursed expenses incurred prior to such date, the Executive or his estate
or beneficiaries, as applicable, shall be entitled to the following severance benefits: (i) continued provision for a period of
twelve (12) months following the Executive’s death or Total Disability of benefits under Benefit Plans extended from time
to time by the Company to its senior executives; and (ii) payment on a pro-rated basis of any Annual Bonus or other payments earned
in connection with any bonus plan to which the Executive was a participant as of the date of death or Total Disability.

 

(b)           Upon
termination of the Executive’s employment pursuant to Section 5(a)(iii), where the Company has offered to renew the term
of the Executive’s employment for an additional one (1) year period and the Executive chooses not to continue in the employ
of the Company, the Executive shall be entitled to receive only the accrued but unpaid compensation and vacation pay through the
date of termination, payment on a pro-rated basis of any Annual Bonus or other payments earned in connection with any bonus plan
to which the Executive was a participant as of the date of the Executive’s termination of employment,  any other
benefits accrued to him under any Benefit Plans outstanding at such time and the reimbursement of documented, unreimbursed expenses
incurred prior to such date. In the event the Company tenders a Non-Renewal Notice to the Executive, then the Executive shall be
entitled to the same severance benefits as if the Executive’s employment were terminated pursuant to Section 5(a)(v); provided,
however, if such Non-Renewal Notice was triggered due to the Company’s statement that the Executive’s employment
was terminated due to Section 5(a)(vi) (for “Cause”), then payment of severance benefits will be contingent upon a
determination as to whether termination was properly for “Cause.”

 

(c)           Upon
termination of the Executive’s employment pursuant to Section 5(a)(v) or other than pursuant to Section 5(a)(i), 5(a)(ii),
5(a)(iii), 5(a)(iv), or 5(a)(vi) (i.e., without “Cause”), in addition to the accrued but unpaid compensation and vacation
pay through the end of the Initial Term or any then applicable extension of the Term and any other benefits accrued to him under
any Benefit Plans outstanding at such time and the reimbursement of documented, unreimbursed expenses incurred prior to such date,
the Executive shall be entitled to the following severance benefits: (i) twelve (12) months’ Base Salary at the then current
rate, to be paid in a single lump sum payment not later than sixty (60) days following such termination, less withholding of all
applicable taxes; (ii) continued provision for a period of twelve (12) months after the date of termination of the benefits under
Benefit Plans extended from time to time by the Company to its senior executives; and (iii) payment on a pro-rated basis of any
Annual Bonus or other payments earned in connection with any bonus plan to which the Executive was a participant as of the date
of the Executive’s termination of employment.  

 

(d)           Upon
termination of the Executive’s employment pursuant to Section 5(a)(iv) or (vi), in addition to the reimbursement of documented,
unreimbursed expenses incurred prior to such date, the Executive shall be entitled to the following severance benefits: accrued
and unpaid Base Salary and vacation pay through the date of termination, less withholding of applicable taxes.  Executive
shall have any conversion rights available under the Company’s Benefit Plans and as otherwise provided by law, including
the Comprehensive Omnibus Budget Reconciliation Act.

 

(e)           Any
payments required to be made hereunder by the Company to the Executive shall continue to the Executive’s beneficiaries in
the event of his death until paid in full.

 

7.           Vacations.
The Executive shall be entitled to a vacation of two (2) weeks per year, during which period his Base Salary shall be paid in full.
The Executive shall take his vacation at such time or times as the Executive and the Company shall determine is mutually convenient.
Any vacation not taken in one (1) year shall accrue, up to a maximum of six (6) weeks vacation, and shall carry over to the subsequent
year.

    	 

    	 

    

 

8.           Confidential
Information.

(a)Disclosure
of Confidential Information. The Executive recognizes, acknowledges and agrees that he has had and will continue to have access
to secret and confidential information regarding WPCS, the Company, its subsidiaries and their respective businesses (“Confidential
Information”), including but not limited to, its products, methods, formulas, software code, patents, sources of supply,
customer dealings, data, know-how, trade secrets and business plans, provided such information is not in or does not hereafter
become part of the public domain, or become known to others through no fault of the Executive. The Executive acknowledges that
such information is of great value to WPCS and the Company, is the sole property of WPCS and the Company (as the case may be),
and has been and will be acquired by him in confidence. In consideration of the obligations undertaken by WPCS and the Company
herein, the Executive will not, at any time, during or after his employment hereunder, reveal, divulge or make known to any person,
any information acquired by the Executive during the course of his employment, which is treated as confidential by WPCS and/or
the Company, and not otherwise in the public domain. The provisions of this Section 8 shall survive the termination of the Executive’s
employment hereunder.

(b)The Executive
affirms that he does not possess and will not rely upon the protected trade secrets or confidential or proprietary information
of any prior employer(s) in providing services to the Company, WPCS or their respective subsidiaries.

(c)In the
event that the Executive’s employment with the Company terminates for any reason, the Executive shall deliver forthwith to
the Company any and all originals and copies, including those in electronic or digital formats, of Confidential Information; provided,
however, Executive shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited
to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing
his compensation or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed for tax
purposes and (iv) copies of plans, programs and agreements relating to his employment, or termination thereof, with the Company.

		9.	Non-Competition and Non-Solicitation.

(a)The Executive
agrees and acknowledges that the Confidential Information that the Executive has already received and will receive is valuable
to WPCS and the Company and that its protection and maintenance constitutes a legitimate business interest of WPCS and the Company,
to be protected by the non-competition restrictions set forth herein. The Executive agrees and acknowledges that the non-competition
restrictions set forth herein are reasonable and necessary and do not impose undue hardship or burdens on the Executive. The Executive
also acknowledges that the Company’s and WPCS’s business is conducted worldwide (the “Territory”),
and that the Territory, scope of prohibited competition, and time duration set forth in the non-competition restrictions set forth
below are reasonable and necessary to maintain the value of the Confidential Information of, and to protect the goodwill and other
legitimate business interests of, the Company, its affiliates and/or its clients or customers. The provisions of this Section 9
shall survive the termination of the Executive’s employment hereunder for the time periods specified below.

(b)The Executive
hereby agrees and covenants that he shall not without the prior written consent of the Member, directly or indirectly, in any capacity
whatsoever, including, without limitation, as an employee, employer, consultant, principal, partner, shareholder, officer, director
or any other individual or representative capacity (other than (i) as a holder of less than two (2%) percent of the outstanding
securities of a company whose shares are traded on any national securities exchange or (ii) as a limited partner, passive minority
interest holder in a venture capital fund, private equity fund or similar investment entity which holds or may hold an equity or
debt position in portfolio companies that are competitive with the Member or the Company; provided however, that the Executive
shall be precluded from serving as an operating partner, general partner, manager or governing board designee with respect to such
portfolio companies), or whether on the Executive's own behalf or on behalf of any other person or entity or otherwise howsoever,
during the Term and thereafter to the extent described below, within the Territory:

    	 

    	 

    

 

(1)Engage,
own, manage, operate, control, be employed by, consult for, participate in, or be connected in any manner with the ownership, management,
operation or control of any business in competition with the Business of the Company, as defined in the next sentence. Business
shall be the development and operation of Bitcoin electronic trading platforms and related software, including Bitcoin trading
software and exchanges.

(2)Recruit,
solicit or hire, or attempt to recruit, solicit or hire, any employee, or independent contractor of the Company to leave the employment
(or independent contractor relationship) thereof, whether or not any such employee or independent contractor is party to an employment
agreement, for the purpose of competing with the Business of the Company;

(3)Attempt
in any manner to solicit or accept from any customer of the Company, with whom Executive had significant contact during Executive’s
employment by the Company (whether under this Agreement or otherwise), business of the kind or competitive with the Business done
by the Company with such customer or to persuade or attempt to persuade any such customer to cease to do business or to reduce
the amount of business which such customer has customarily done or might do with the Company, or if any such customer elects to
move its business to a person other than the Company, provide any services of the kind or competitive with the Business of the
Company for such customer, or have any discussions regarding any such service with such customer, on behalf of such other person
for the purpose of competing with the Business of the Company; or

(4)Interfere
with any relationship, contractual or otherwise, between the Company and any other party, including, without limitation, any supplier,
distributor, co-venturer or joint venturer of the Company, for the purpose of soliciting such other party to discontinue or reduce
its business with the Company for the purpose of competing with the Business of the Company.

With respect to
the activities described in Paragraphs (1), (2), (3) and (4) above, the restrictions of this Section 9 shall continue during the
Employment Period and, upon termination of the Executive’s employment pursuant to Section 5 (other than pursuant to Section
5(a)(v) or 5(d)(iv)), for a period of one (1) year thereafter, provided, however, that following termination of employment,
the restrictions of this Section 9 shall terminate upon the occurrence of an Event of Default (as such term is defined in the Senior
Secured Note issued by the Company to the Executive on December 16, 2013) that is not cured within thirty (30) days.

 

10.           Clawback
Rights.  The Annual Bonus, and any and all stock based compensation (such as options and equity awards, including
the Initial Option Grant and any other Share Awards) (collectively, the “Clawback Benefits”) shall be subject
to “Clawback Rights” as follows: During the period that the Executive is employed by the Company and  upon
the termination of the Executive’s employment and for a period of three (3) years thereafter, if there is a restatement of
any financial results from which any Clawback Benefits to Executive shall have been determined, Executive agrees to repay any amounts
which were determined by reference to any Company financial results which were later restated (as defined below), to the extent
the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that would have been paid, based on the restatement of
the Company’s (or WPCS’s) financial information.  All Clawback Benefits amounts resulting from such restated
financial results shall be retroactively adjusted by the Compensation Committee of the Member to  take into account the
restated results, and any excess portion  of  the Clawback Benefits  resulting from such restated
results shall be immediately surrendered to WPCS and if not so surrendered within ninety (90) days of the revised calculation being
provided to the Executive by the Compensation Committee of the Member following a publicly announced restatement, the Company and/or
WPCS shall have the right to take any and all action to effectuate such adjustment. The calculation of the revised Clawback Benefits
amount shall be determined by the Compensation Committee of the Member in good faith and applicable law, rules and regulations.  All
determinations by the Compensation Committee of the Member with respect to the Clawback Rights shall be final and binding on the
Company, WPCS and Executive.  The Clawback Rights shall terminate following a Change of Control, subject to applicable
law, rules and regulations. For purposes of this Section 10, a restatement of financial results that requires a repayment of a
portion of the Clawback Benefits amounts shall mean a restatement resulting from material non-compliance of the Company (or WPCS)
with any financial reporting requirement under the federal securities laws and shall not include a restatement of financial results
resulting from subsequent changes in accounting pronouncements or  requirements which were not in effect on the date
the financial statements were originally prepared (“Restatements”).  Additionally, if any material
breach of any agreement by Executive relating to confidentiality, non-competition, non-raid of employees, or non-solicitation of
vendors or customers (including, without limitation, Sections 8 or 9 hereof) or if any material breach of Company policy or procedures
which causes material harm to the Company or WPCS occurs, as determined by the Board of the Member in its sole discretion, then
the Executive agrees to repay or surrender any Clawback Benefits upon demand by the Company and if not so repaid or surrendered
within ninety (90) days of such demand, the Company and/or WPCS shall have the right to take any and all action to effectuate such
adjustment. The parties acknowledge it is their intention that the foregoing Clawback Rights as relates to Restatements conform
in all respects to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd
Frank Act”) and requires recovery of all “incentive-based” compensation, pursuant to the provisions of the
Dodd Frank Act and any and all rules and regulations promulgated thereunder from time to time in effect.  Accordingly,
the terms and provisions of this Agreement shall be deemed automatically amended from time to time to assure compliance with the
Dodd Frank Act and such rules and regulation as hereafter may be adopted and in effect.

    	 

    	 

    

 

11.           Section
409A.

 

The provisions of this Agreement are
intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any final
regulations and guidance promulgated thereunder (“Section 409A”) and shall be construed in a manner consistent
with the requirements for avoiding taxes or penalties under Section 409A.  The Company and Executive agree to work together
in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or
desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

To the extent that Executive will be
reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section 409A, (a) the right to reimbursement
or in-kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount of expenses eligible for reimbursement,
or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits
to be provided, in any other taxable year; provided that the foregoing clause (b) shall not be violated with regard to expenses
reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related
to the period the arrangement is in effect and (c) such payments shall be made on or before the last day of the taxable year following
the taxable year in which you incurred the expense.

 

A termination of employment shall not
be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits
upon or following a termination of employment unless such termination constitutes a “Separation from Service” within
the meaning of Section 409A and, for purposes of any such provision of this Agreement references to a “termination,”
“termination of employment” or like terms shall mean Separation from Service.

 

Each installment
payable hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury
Regulation Section 1.409A-2(b)(2)(iii).  Each payment that is made within the terms of the “short-term deferral”
rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule.  Each
other payment is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation
Section 1.409A-1(b)(9)(iii), et. seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from
Code Section 409A being subject to Code Section 409A. 

 

Notwithstanding anything to the contrary
in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s
termination, then only that portion of the severance and benefits payable to Executive pursuant to this Agreement, if any, and
any other severance payments or separation benefits which may be considered deferred compensation under Section 409A (together,
the “Deferred Compensation Separation Benefits”), which (when considered together) do not exceed the Section 409A Limit
(as defined herein) may be made within the first six (6) months following Executive’s termination of employment in accordance
with the payment schedule applicable to each payment or benefit.  Any portion of the Deferred Compensation Separation
Benefits in excess of the Section 409A Limit otherwise due to Executive on or within the six (6) month period following Executive’s
termination will accrue during such six (6) month period and will become payable in one lump sum cash payment on the date six (6)
months and one (1) day following the date of Executive’s termination of employment.  All subsequent Deferred Compensation
Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if Executive dies following termination but prior to the six (6) month anniversary of Executive’s
termination date, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively
practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits will be payable in
accordance with the payment schedule applicable to each payment or benefit.

    	 

    	 

    

 

For purposes of this Agreement, “Section
409A Limit” will mean a sum equal (x) to the amounts payable prior to March 15 following the year in which Executive terminations
plus (y) the lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive
during the Company’s taxable year preceding the Company’s taxable year of Executive’s termination of employment
as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any IRS guidance issued with respect thereto; or (ii) the
maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in
which Executive’s employment is terminated.

 

12.           Miscellaneous.

 

(a)           The
Executive acknowledges that the services to be rendered by him under the provisions of this Agreement are of a special, unique
and extraordinary character and that it would be difficult or impossible to replace such services. Accordingly, the Executive agrees
that any breach or threatened breach by him of Sections 8 or 9 of this Agreement shall entitle the Company, in addition to all
other legal remedies available to it, to apply to any court of competent jurisdiction to seek to enjoin such breach or threatened
breach. The parties understand and intend that each restriction agreed to by the Executive hereinabove shall be construed as separable
and divisible from every other restriction, that the unenforceability of any restriction shall not limit the enforceability, in
whole or in part, of any other restriction, and that one or more or all of such restrictions may be enforced in whole or in part
as the circumstances warrant. In the event that any restriction in this Agreement is more restrictive than permitted by law in
the jurisdiction in which the Company seeks enforcement thereof, such restriction shall be limited to the extent permitted by law.
The remedy of injunctive relief herein set forth shall be in addition to, and not in lieu of, any other rights or remedies that
the Company may have at law or in equity.

 

(b)           Neither
the Executive nor the Company may assign or delegate any of their rights or duties under this Agreement without the express written
consent of the other; provided however that the Company shall have the right to delegate its obligation of payment of all sums
due to the Executive hereunder, provided that such delegation shall not relieve the Company of any of its obligations hereunder.

 

(c)           This
Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to the Executive’s
employment by the Company, supersedes all prior understandings and agreements, whether oral or written, between the Executive and
the Company, and shall not be amended, modified or changed except by an instrument in writing executed by the party to be charged.
The invalidity or partial invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this
Agreement. No waiver by either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same time or any prior or subsequent time.

 

(d)           This
Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors,
heirs, beneficiaries and permitted assigns.

 

(e)           The
headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

(f)           All
notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage
prepaid, or by private overnight mail service (e.g. Federal Express) to the party at the address set forth above or to such other
address as either party may hereafter give notice of in accordance with the provisions hereof. Notices shall be deemed given on
the sooner of the date actually received or the third business day after sending.

    	 

    	 

    

 

(g)           This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without reference to
principles of conflicts of laws and each of the parties hereto irrevocably consents to the jurisdiction and venue of the federal
and state courts located in the State of New York.

 

 

 

(h)           This
Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the date set forth
above.

 

 

[signature page follows]

 

    	 

    	 

    

 

COMPANY:

 

BTX TRADER LLC

 

 

By:                                                                           

        

Title:  

 

EXECUTIVE: ILYA SUBKHANKULOV

 

___________________________________

 

 

AGREED AND ACKNOWLEDGED:

 

WPCS INTERNATIONAL INCORPORATED

 

By:                                                                           

 

Title:LOCK-UP AGREEMENT

 

[__], 2013

 

Ladies and Gentlemen:

 

The undersigned is a beneficial
owner of shares of capital stock, or securities convertible into or exercisable or exchangeable for the capital stock (each, a
“Company Security”) of WPCS International Incorporated, a Delaware corporation (the “Company”).

 

1.Lockup. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees, for the benefit of the Company,
that, during the period beginning on the date hereof and ending on the two year anniversary of the date hereof (the “Lockup
Period”), the undersigned will not directly or indirectly, (i) offer, sell, offer to sell, contract to sell, hedge, pledge,
sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase
or sell (or announce any offer, sale, offer of sale, contract of sale, hedge, pledge, sale of any option or contract to purchase,
purchase of any option or contract of sale, grant of any option, right or warrant to purchase or other sale or disposition), or
otherwise transfer or dispose of (or enter into any transaction or device that is designed to, or could be expected to, result
in the disposition by any person at any time in the future), any Company Security, beneficially owned, within the meaning of Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), by the undersigned on the
date hereof or hereafter acquired or (ii) enter into any swap or other agreement or any transaction that transfers, in whole or
in part, directly or indirectly, the economic consequence of ownership of any Company Security, whether or not any such swap or
transaction described in clause (i) or (ii) above is to be settled by delivery of any Company Security.

 

2. Leak-Out Provision. Notwithstanding
the lockup provisions of Paragraph 1, beginning on the six month anniversary of the date hereof and on every six month anniversary
thereafter until the termination of the Lockup Period, 25% of the Company Securities subject to this Letter Agreement shall be
released from the restrictions contained herein.

    	 

    	 

    

 

3. Permitted Transfer. Notwithstanding
the foregoing, the undersigned (and any transferee of the undersigned) may transfer any Company Security: (i) as a bona fide gift
or gifts, provided that prior to such transfer the donee or donees thereof agree in writing to be bound by the restrictions set
forth herein, (ii) to any trust, partnership, corporation or other entity formed for the direct or indirect benefit of the undersigned
or the immediate family of the undersigned, provided that prior to such transfer a duly authorized officer, representative or trustee
of such transferee agrees in writing to be bound by the restrictions set forth herein, and provided further that any such transfer
shall not involve a disposition for value, (iii) to non-profit organizations qualified as charitable organizations under Section
501(c)(3) of the Internal Revenue Code of 1986, as amended, or (iv) if such transfer occurs by operation of law, such as rules
of descent and distribution, statutes governing the effects of a merger or a qualified domestic order, provided that prior to such
transfer the transferee executes an agreement stating that the transferee is receiving and holding any Company Security subject
to the provisions of this Letter Agreement. For purposes hereof, “immediate family” shall mean any relationship by
blood, marriage or adoption, not more remote than first cousin.

 

3.Governing Law. This Letter Agreement
shall be governed by and construed in accordance with the laws of the State of New York.

 

4.Miscellaneous. This Letter Agreement
will become a binding agreement among the undersigned as of the date hereof. This Letter Agreement (and the agreements reflected
herein) may be terminated by the mutual agreement of the Company and the undersigned, and if not sooner terminated, will terminate
upon the expiration date of the Lockup Period. This Letter Agreement may be duly executed by facsimile and in any number of counterparts,
each of which shall be deemed an original, and all of which together shall be deemed to constitute one and the same instrument.
Signature pages from separate identical counterparts may be combined with the same effect as if the parties signing such signature
page had signed the same counterpart. This Letter Agreement may be modified or waived only by a separate writing signed by each
of the parties hereto expressly so modifying or waiving such agreement.

 

[SIGNATURE PAGES FOLLOW]

 

 

    	 

    	 

    

 

 

Very truly yours,

 

_______________________________

 

 

 

 

 

Number of shares of Common Stock owned: ________

 

Other Company Securities owned: ___________

 

Certificate Numbers: _____________________________

 

Accepted and Agreed to:

 

WPCS INTERNATIONAL INCORPORATED

 

 

By:___________________________________________

Name:

Title:

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