STOCK PURCHASE AND CONFIDENTIALITY
		AGREEMENT

Stock Purchase and Confidentiality Agreement
		(the Agreement), dated March 13, 2007, between and among
		Merrimac Industries, Inc., a Delaware corporation (the Company),
		with an address of 41 Fairfield Place, West Caldwell, MJ 07006, and Adam Smith
		Investment Partners, L.P., a New York limited partnership (ASIP),
		Adam Smith Capital Management LLC, a New York limited liability company
		(ASCM), Diamond Capital Management, a New York Corporation
		(DCM), Adam Smith Investments, Ltd., a British Virgin Island
		limited company (ASI), Richard Grossman (RG), Orin
		Hirschman, (OH) and Richard and Ana Grossman JTWROS
		(RAG), each with the address set forth on the signature pages
		attached hereto (each of ASIP, ASCM, DCM, ASI, RG, OH and RAG, a
		Seller, and collectively, the Sellers).

WHEREAS, The Sellers wish to sell to the
		Company, and the Company wishes to purchase from the Sellers, certain
		outstanding shares of common stock of the Company owned by the Sellers (such
		sale and purchase being referred to herein as the
		Transaction);

WHEREAS, in connection with the Transaction,
		the Company will disclose to the Seller certain confidential information
		relating to the Companys business; and

WHEREAS, the Seller and the Company wish to
		set forth their understanding with respect to such confidential
		information.

NOW, THEREFORE, the parties agree as
		follows:

1. Each Seller agrees to sell to the
		Company, free and clear of all liens and encumbrances, and the Company agrees
		to purchase from each Seller, the number of shares of common stock, par value
		$0.01 per share, of the Company set forth next to each Sellers name on
		Schedule A hereto (the Shares), at a price of $9.00 per share,
		representing an aggregate of 238,700 shares and an aggregate purchase price of
		$2,148,300.

2. Each Seller represents to the Company,
		and the Company represents and warrants to the Sellers, that it has the full
		right, power and authority to enter into this Agreement and to consummate the
		transactions contemplated hereby. Each Seller represents and warrants to the
		Company that it holds exclusive record and beneficial legal title to the Shares
		set forth next to its name on Schedule A attached hereto, free and clear of all
		liens, pledges, encumbrances, restrictions, and claims.

3.Confidential InformationFor purposes of this Agreement, Confidential
		Information means the information included in Schedule B hereto. The
		Sellers hereby acknowledge the receipt of the Confidential Information included
		in Schedule B.

4.Non-Disclosure and Trading Restrictions. Each Seller shall use the Confidential Information
		only in connection with the Transaction. Each Seller agrees to maintain the
		Confidential Information in confidence (within the meaning of Rule
		100(b)(2)(ii) of Regulation FD) and to not disclose the Confidential
		Information to any third party without the





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Companys prior written consent. While
		in possession of any Confidential Information, none of any Seller, any
		affiliate or representative of any Seller, and any person to whom the Seller
		discloses Confidential Information shall engage in any transactions involving
		the Companys securities except for the Transaction. Each Seller
		acknowledges and agrees that it is aware of the restrictions imposed by the
		United States securities laws on the purchase or sale of securities by any
		person possessing material non-public information about the issuer of such
		securities, and on the communication of such information to any other person
		when it is reasonably foreseeable that such other person is likely to purchase
		or sell such securities in reliance upon such information.

5.Term. Each
		Sellers obligations under this Agreement shall continue until the earlier
		of (i) the time 48 hours after the Company files its Annual Report on Form 10-K
		for the year ended December 31, 2006 with the Securities and Exchange
		Commission or (ii) the time the Confidential Information shall become publicly
		available.

6. Miscellaneous.

(a) This Agreement shall be governed by, and
		construed and enforced in accordance with, the laws of the State of New
		York.

(b) This Agreement represents the entire
		understanding and agreement between the Sellers and the Company with respect to
		the subject matter hereof, and supersedes all other oral or written
		negotiations, communications, understandings, agreements and representations
		(if any) made by or between the Sellers and the Company.

(c) The provisions of this Agreement may not
		be amended, supplemented, or waived orally, but only by a writing signed by the
		party as to whom enforcement of any such amendment, supplement or waiver is
		sought.

(d) All of the terms and provisions of this
		Agreement shall be binding upon, inure to the benefit of, and be enforceable by
		the Company, the Sellers and their respective successors and assigns.





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IN WITNESS WHEREOF, the parties have
		executed this Agreement as of the date first written above.



COMPANY:By:
			 /s/ Robert V. CondonTitle:
			 Vice President, Finance
				  andChief Financial Officer




SELLERS:/s/ Richard GrossmanRichard Grossman
				101 East 52nd
				  Street
				New York, New York 10022




/s/ Orin HirschmanOrin Hirschman
				6006 Berkeley Avenue
				Baltimore, Maryland 21209




ADAM SMITH INVESTMENT PARTNERS,
				  L.L.C.By:
			 /s/ Richard GrossmanRichard Grossman
				101 East 52nd
				  Street
				New York, New York 10022




ADAM SMITH INVESTMENT PARTNERS,
				  L.P.By: ADAM SMITH CAPITAL MANAGEMENT,
				  L.L.C.
				General PartnerBy:
			 /s/ Richard GrossmanRichard Grossman, Manager
				101 East 52nd
				  Street
				New York, New York 10022






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DIAMOND CAPITAL MANAGEMENT
				  INC.By:
			 /s/ Richard GrossmanRichard Grossman, Vice
				  President101 East 52nd
				  StreetNew York, New York 10022




ADAM SMITH INVESTMENT LTD.By: DIAMOND CAPITAL MANAGEMENT,
				  INC.Investment advisor




By:
			 /s/ Richard GrossmanRichard Grossmanc/o Insingor Trust (BVI)
				  LimitedTropic Isle BuildingP.O. Box 438Tortola, British Virgin
				  Islands




RICHARD AND ANA GROSSMAN
				  JTWROSBy:
			 /s/ Richard GrossmanRichard Grossman101 East 52nd
				  StreetNew York, New York 10022




By:
			 /s/ Ana GrossmanAna Grossman




HERSHEL & ETTIL BERKOWITZBy:
			 /s/ Hershel P. BerkowitzHershel P. BerkowitzBy:
			 /s/ Ettil BerkowitzEttil Berkowitz






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JOSHUA HIRSCHBy:
			 /s/ Joshua HirschJoshua HirschPAUL PACKERBy:
			 /s/ Paul PackerPaul Packer






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