Document:

ex102.htm

    Exhibit
      10.2

    ESCROW
      AGREEMENT

    This
      Agreement is made as of the 1st day of
      November,
      2007, by and among Harold L. Gomes, and Judy L. Gomes, each a shareholder (the
      “Shareholders”) of Gomes and Gomes, Inc. dba Empire Electric  a
      corporation organized and existing under the laws of the State of California,
      with its principal offices located at 4801 Seaport Blvd., West Sacramento,
      CA
      95691 ("EEI"), WPCS International Incorporated, a corporation organized and
      existing under the laws of the State of Delaware, with its principal offices
      at
      One East Uwchlan Avenue, Suite 301, Exton Pennsylvania
      19341  ("WPCS"), and Sichenzia Ross Friedman Ference LLP, a New York
      limited liability partnership having offices at 61 Broadway, New York, New
      York
      10006 (the "Escrow Agent").

    RECITALS

    The
      Shareholders, EEI and WPCS are parties to that certain Stock Purchase Agreement,
      dated as of November 1, 2007 (the "Purchase Agreement").  WPCS and the
      Shareholders wish to provide for the escrow of certain monies pursuant to the
      Purchase Agreement, and desire that the Escrow Agent hold such monies in
      connection therewith pursuant to the provisions of this Agreement, and the
      Escrow Agent is willing to hold such cash pursuant to the provisions of this
      Agreement.  All capitalized terms contained herein and not otherwise
      defined shall have the meaning ascribed to them in the Purchase
      Agreement.  In consideration of the premises and mutual covenants,
      agreements, representations and warranties contained herein, the parties hereby
      agree as follows:

     

    
      	
            	
              1.

            	
              WPCS
                and Shareholders hereby appoint the Escrow Agent to hold $175,000
                in cash
                (the "Escrowed Funds"), in a trust account, and the Escrow Agent
                accepts
                such appointment, subject to the terms and conditions
                hereof.  WPCS has, prior to the execution of this Escrow
                Agreement, delivered by way of wire transfer to the Escrow Agent
                the
                Escrowed Funds and hereby irrevocably instructs the Escrow Agent
                to deal
                with the Escrowed Funds on and subject to the terms hereof.  In
                executing this Escrow Agreement the Escrow Agent acknowledges receipt
                of
                the Escrowed Funds and the instructions contained
                herein.

            

    

      

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	                    2.	
              (a)

            	
              The
                Escrow Agent shall retain the Escrowed Funds until the NTAV of the
                Company
                as of the Closing Date shall be
                determined.

            

    

     

    
      	
            	
              (b)

            	
              In
                the event the NTAV as of the Closing Date shall be less than $1,100,000,
                the Cash Purchase Price shall be reduced by the amount of the shortfall
                and such amount shall be delivered to WPCS.  In the event the
                NTAV as of the Closing Date shall be greater than $1,100,000, the
                Closing
                Payment shall be increased by the amount of the excess and such amount
                shall be delivered to the Shareholders, pro rata, based upon their
                ownership of Shares.  The NTAV shall be determined in accordance
                with the terms and conditions of Section 2.3(a) of the Purchase
                Agreement.  The Escrow Agent shall only deliver the Escrowed
                Funds upon (i) written notification signed by each of the Shareholders
                and
                WPCS of final determination of the NTAV, or (ii) delivery to the
                Escrow
                Agent of a written arbitration award with respect to the determination
                of
                the NTAV.

            

    

     

    
      	
            	
              (c)

            	
              The
                balance of any amount remaining after the delivery of payments required
                pursuant to section 2(b) above (the “Escrow Payment”) shall be delivered
                to the Shareholders, pro rata, based upon their ownership of Shares,
                within three (3) business days of the date of the escrow payments
                required
                by section 2(b) above.

            

    

    

    
      	
            	
              3.

            	
              The
                Escrow Agent shall, from time to time, deliver all or some of the
                Escrowed
                Funds to WPCS or the Shareholders in accordance with such written
                instructions, jointly executed by WPCS and the Shareholders, as the
                Escrow
                Agent may receive.

            

    

     

    
      	
            	
              4.

            	
              The
                Escrow Agent shall not be under any duty to give the Escrowed Funds
                any
                greater degree of care than it gives its own similar property, and
                it
                shall have no liability hereunder, except for the willful breach
                of its
                duties hereunder.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              5.

            	
              The
                Escrow Agent shall have no duties or responsibilities except those
                expressly set forth herein, and no implied duties or obligations
                should be
                read into this Escrow Agreement against the Escrow Agent.  The
                Escrow Agent need not refer to, and will not be bound by, the provisions
                of any other agreement, except for definitions of terms contained
                in the
                Purchase Agreement.

            

    

     

    
      	
            	
              6.

            	
              The
                Escrow Agent may consult with counsel and shall be fully protected
                with
                respect to any action taken or omitted by it in good faith on advice
                of
                counsel.

            

    

     

    
      	
            	
              7.

            	
              The
                Escrow Agent makes no representation as to the validity, value,
                genuineness or the collectibility of any security or other document
                or
                instrument held by or delivered to
                it.

            

    

     

    
      	
            	
              8.

            	
              The
                Escrow Agent will receive no compensation for its services
                hereunder.

            

    

     

    
      	
            	
              9.

            	
              In
                the event that the Escrow Agent shall be uncertain as to its duties
                or
                rights hereunder, or shall receive instructions from WPCS and the
                Shareholders or both of them, with respect to the Escrowed Funds,
                which,
                in its opinion, are in conflict with any of the provisions hereof
                (i) it
                shall be entitled to refrain from taking any action, and in doing
                so shall
                not become liable in any way or to any person for its failure or
                refusal
                to comply with such conflicting demands, and it shall be entitled
                to
                continue so to refrain from acting and so refuse to act until it
                shall be
                directed otherwise, in writing, jointly by WPCS and the Shareholders
                or
                until it shall receive a final determination of a court of law,
                arbitration panel, or similar adjudicative body, or (ii) it may commence
                as interpleader action in any court of competent jurisdiction to
                seek an
                adjudication of the rights of WPCS and the
                Shareholders.

            

    

     

    
      	
            	
              10.

            	
              The
                Escrow Agent may act in reliance upon any notice, instruction,
                certificate, statement, request, consent, confirmation, agreement
                or other
                instrument which it believes to be genuine and to have been signed
                by a
                proper person or persons, and may assume that any of the officers
                of WPCS
                or the Shareholders purporting to act on behalf of WPCS or the
                Shareholders in giving any such notice or other instrument in connection
                with the provisions hereof has been duly authorized to do
                so.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    
      	
            	
              11.1

            	
              In
                the event that the Escrow Agent retains counsel or otherwise incurs
                any
                legal fees by virtue of any provision of this Escrow Agreement, the
                reasonable fees and disbursements of such counsel and any other liability,
                loss or expense which the Escrow Agent may thereafter suffer or incur
                in
                connection with this Escrow Agreement or the performance or attempted
                performance in good faith of its duties hereunder shall be paid (or
                reimbursed to it) by WPCS and the Shareholders, jointly and
                severally.  In the event that the Escrow Agent shall become a
                party to any litigation in connection with its functions as Escrow
                Agent
                pursuant to this Escrow Agreement, whether such litigation shall
                be
                brought by or against it, the reasonable fees and disbursements of
                counsel
                to the Escrow Agent including the amounts attributable to services
                rendered by members or associates of Escrow Agent at the then prevailing
                hourly rate charged by them and disbursements incurred by them, together
                with any other liability, loss or expense which it may suffer or
                incur in
                connection therewith, shall be paid (or reimbursed to it) by WPCS
                and the
                Shareholders, jointly and severally, unless such loss, liability
                or
                expense is due to the willful breach by the Escrow Agent of its duties
                hereunder.

            

    

     

    
      	
            	
              11.2

            	
              WPCS
                and the Shareholders jointly and severally hereby unconditionally
                agree to
                indemnify the Escrow Agent and hold it harmless from and against
                any and
                all taxes (including federal, state and local taxes of any kind and
                other
                governmental charges), expenses, damages, actions, suits or other
                charges
                incurred by or brought or assessed against it for (i) anything done
                or
                omitted by it in the performance of its duties hereunder, or (ii)
                on
                account of acting in its capacity as an Escrow Agent or stakeholder
                hereunder, except as a result of its willful breach of its duties
                under
                this Escrow Agreement.

            

    

     

    
      	
            	
              11.3

            	
              All
                expenses incurred by the Escrow Agent in connection with the performance
                of its duties hereunder shall be paid (or reimbursed to it) by WPCS
                and
                the Shareholders, jointly and
                severally.

            

    

     

    
      	
            	
              11.4

            	
              The
                agreements contained in this section 11 shall survive any termination
                of
                the duties of the Escrow Agent
                hereunder.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              12.

            	
              The
                terms and provisions of this Escrow Agreement may not be waived,
                discharged or terminated orally, but only by an instrument in writing
                signed by the person or persons against whom enforcement of the discharge,
                waiver or termination is sought.

            

    

     

    
      	
            	
              13.

            	
              The
                Escrow Agent shall not be bound by any modification of the provisions
                of
                this Escrow Agreement, unless such modification is in writing and
                signed
                by WPCS and the Shareholders, and, with respect to any modification
                in
                Escrow Agent's duties or its rights of indemnification hereunder,
                it shall
                have given their prior written consent
                thereto.

            

    

     

    
      	
            	
              14.

            	
              WPCS
                and the Shareholders shall, from time to time, execute such documents
                and
                perform such acts as the Escrow Agent may reasonably request and
                as may be
                necessary to enable the Escrow Agent to perform its duties hereunder
                or
                effectuate the transactions contemplated by this Escrow
                Agreement.

            

    

     

    
      	
            	
              15.

            	
              WPCS
                and the Shareholders hereby acknowledge that the acts of the Escrow
                Agent
                are purely ministerial and do not represent a conflict of interest
                for the
                Escrow Agent to act, or continue to act, as counsel for any party
                to this
                Agreement with respect to any litigation or other matters arising
                out of
                this Agreement or otherwise.

            

    

     

    
      	
            	
              16.

            	
              The
                Escrow Agent may resign at any time upon ten (10) days' written notice
                to
                WPCS and the Shareholders.  In the event of the Escrow Agent's
                resignation, its only duty thereafter shall be to hold and dispose
                of the
                Escrowed Funds in accordance with the provisions of this Agreement
                until a
                successor Escrow Agent shall be appointed and written notice of the
                name
                and address of such successor Escrow Agent shall be given to the
                resigning
                Escrow Agent by the other parties hereto, whereupon the resigning
                Escrow
                Agent's only duty shall be to deliver the Escrowed Funds to the successor
                Escrow Agent.

            

    

     

    
      	
            	
              17.

            	
              The
                rights created by this Agreement shall inure to the benefit of, and
                the
                obligations created hereby shall be binding upon, the heirs, successors,
                assigns and personal representatives of the Escrow Agent, WPCS and
                the
                Shareholders.

            

    

     

    
      	
            	
              18.

            	
              Each
                notice, demand, request, approval or communication ("Notice") which
                is or
                may be required to be given by any party to any other party in connection
                with this Agreement and the transactions contemplated hereby, shall
                be in
                writing, and given by personal delivery, certified mail, return receipt
                requested, prepaid, or by overnight express mail delivery and properly
                addressed to the party to be served at such address as set forth
                above.

            

    

     

    Notices
      shall be effective on the date delivered personally, the next day if delivered
      by overnight express mail or three days after the date mailed by certified
      mail.

     

    
      	
            	
              19.

            	
              This
                Escrow Agreement shall be governed by, and its provisions construed
                in
                accordance with the laws of the State of New
                York.

            

    

    

    

    

    [Intentionally
      blank]

     

     

     

    
 

    
       

      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

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

     

    
      	 	
              WPCS
                INTERNATIONAL

              INCORPORATED

            	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ ANDREW
              HIDALGO	 
	 	 	Andrew
              Hidalgo	 
	 	 	Chief
              Executive Officer	 
	 	 	 	 

      	 	GOMES
              AND GOMES
              , INC.
              dba
                EMPIRE ELECTRIC

            	 
	 	 	
               

            	 
	
               

            	
              By:
                

            	/s/ HAROLD
              L. GOMES	 
	 	 	Harold
              L. Gomes	 
	 	 	President	 
	 	 	 	 

      	 	SHAREHOLDERS:	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ HAROLD
              L. GOMES	 
	 	 	Harold
              L. Gomes	 
	 	 	 	 

      	 	 	 	 
	 	
              By:
                

            	/s/ JUDY
              L. GOMES	 
	 	 	Judy
              L. Gomes	 
	 	 	 	 
	 	 	 	 

    

     

     

    ESCROW
      AGENT:

    SICHENZIA
      ROSS FRIEDMAN FERENCE LLP

    

    /s/
      THOMAS A. ROSE 

    
      

    

    Thomas
      A.
      Rose,

     Partner

     

    
 6ex103.htm

    Exhibit
      10.3

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT is made effective as of the 1stday
      of November,
      2007 (the “Effective Date”).

    

    AMONG:

    

    GOMES
      AND GOMES, INC. dba EMPIRE ELECTRIC, a corporation formed pursuant to
      the laws of the State of California and having an office for business located
      at
      4801 Seaport Blvd., West Sacramento, CA 95691 ("Employer") and wholly owned
      subsidiary of WPCS INTERNATIONAL INCORPORATED, a corporation
      formed pursuant to the laws of the State of Delaware (“Parent”);

    

    AND

    

    HAROLD
      L.GOMES, an individual having an address at 4801 Seaport Blvd., West
      Sacramento, CA 95691 (“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 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 Board of Directors
      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 in West Sacramento, California or at such
      other place of business within a 25 mile radius of West Sacramento, California
      as may be determined by the Board of Directors 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.

    

    ARTICLE
      3

    TERM

    

    The
      “Term” of this Agreement shall commence on the Effective Date and continue
      thereafter for a term of two (2) years, as may be extended or earlier terminated
      pursuant to the terms and conditions of this Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      4

    COMPENSATION

    Salary

    

    4.1

    Employer
      shall pay to Employee an annual salary (the “Salary”) of One Hundred Twenty Five
      Thousand Dollars ($125,000.00), 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.   If this Agreement is extended for additional periods,
      the salary increases will be determined by the Employer’s Board of
      Directors.

    

    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 Employer 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 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
      Employer.  In addition, Employer shall reimburse Employee through 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 eligible to receive bonuses, based
      on
      the financial performance of the Employer, at the discretion of the Board of
      Directors of the Employer or Parent.

     

    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;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              (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 (i) information in the public domain
      at the time of the disclosure of such information by Employee, (ii) information
      that is disclosed by Employee with the prior consent of Employer, or (iii)
      in
      connection with a legal or governmental proceeding provided that Employee has
      delivered prior written notice thereof to Employer and has reasonably cooperated
      (at Employer’s expense) with any efforts by Employer to prevent such
      disclosure.

    

    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 actually 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.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      7

    COVENANT
      NOT TO COMPETE

    

    Except
      as
      expressly permitted in Article 5 above, during the Term of this Agreement and
      for a period of two(2) years after the later of the Effective Date or the
      termination of the Employee’s employment by the Employer, Employee shall not
      engage in any of the following competitive activities , (a) engaging, 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, with respect to any business or activity that Employer is
      engaging in as of the termination date of this Agreement and the territory
      for
      such business or activity, for the period of two (2) years following the date
      this Agreement is terminated. In addition, during the two-year period following
      such expiration or earlier termination, neither Employee nor Employer or Parent
      shall make or, to the extent within its control, permit the making of any
      negative statement of any kind concerning Employer or its affiliates, or their
      directors, officers or agents or Employee, except in connection with any legal
      or governmental proceedings or actions. Nothing in this Article 7 shall be
      deemed, however, to prevent Employee from owning securities of any
      publicly-owned corporation engaged in any such business, provided that the
      total
      amount of securities of each class owned by Employee in such publicly-owned
      corporation (other than Parent) does not exceed two percent (2%) of the
      outstanding securities of such class.

    

    ARTICLE
      8

    SURVIVAL

    

    Employee
      agrees that the provisions of Articles 6, 7 and 9, and Employer agrees that
      the
      last sentence of Article 7, 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.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

            

    

    

    
      	
               

            	
              (v)

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

            

    

    

    
      	
               

            	
              (vi)

            	
              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;

            

    

    

    
      	
            	
              (vii)

            	
              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.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    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
      and
      expense reimbursement 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, including any pro-rated bonus, 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, including any pro-rated
      bonus, 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, including any pro-rated bonus,
      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 three (3) 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.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    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 Washington, without regard to any conflict-of-laws principles. Employer
      and Employee hereby consent to personal jurisdiction before all courts in the
      State of Washington, 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.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    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.

    

    Notices

    

    13.9

    All
      notices and other communications under this Agreement shall be in writing and
      shall be deemed given when delivered personally, mailed by certified mail,
      return receipt requested, or via recognized overnight courier service with
      all
      charges prepaid or billed to the account of the sender to the parties (and
      shall
      also be transmitted by facsimile to the Persons receiving copies thereof) at
      the
      following addresses (or to such other address as a party may have specified
      by
      notice given to the other party pursuant to this provision):

    

    
      	
              (a)  

            	
              Company:

              
                Empire
                  Electric

                4081
                  Seaport Blvd.

                West
                  Sacramento, CA 95691

                Phone:  (916)
                  373-9153

                Facsimile:  (916)
                  373-0964

              

            

    

    

    

    
      	
              (b)  

            	
              Employee:
                
                Harold
                  L. Gomes

                Empire
                  Electric

                4081
                  Seaport Blvd.

                West
                  Sacramento, CA 95691

                Phone:  (916)
                  373-9153

                Facsimile:  (916)
                  373-0964

              

            

    

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

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

    

    

    

    Employer:

    GOMES
      AND GOMES, INC. dba EMPIRE
      ELECTRIC

    

    

    By:          /s/
      HAROLD L. GOMES

    Name:
      Harold L. Gomes

    Title:  President

    

    

    Employee:

    

    

    By:          /s/
      HAROLD L. GOMES

    Harold
      L.  Gomes

    
      
        
        

      

      
        9

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