Document:

EXHIBIT 10.1
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                                 LEASE AGREEMENT

     This Lease Agreement ("Agreement") is entered into as of August 3, 2005
(the "Effective Date") by and between Arizona Pacific Materials, an Arizona
limited liability company ("APM") and CalMat Co., a Delaware Corporation, dba
Vulcan Materials Company, Western Division ("Vulcan").

                                    RECITALS

     A. APM owns in fee simple the real property more particularly described as
Parcel 1 on Attachment A, attached hereto and incorporated herein by reference.

     B. APM maintains a special land use permit ("State Permit") from the
Arizona State Land Department for the surface estate of certain real property
located adjacent to the Property more particularly described as Parcel 2 on
Attachment A ("Parcel 2 or the Mineral Estate"). APM owns all of the mineral
materials on Parcel 2, including basalt, cinders, sand, gravel and other inert
materials and has the right to access and mine these mineral materials from the
Mineral Estate pursuant to the State Permit.

     C. APM holds a Contract for the Sale of Mineral Materials with the Phoenix
Field Office, Bureau of Land Management, United States Department of the
Interior dated November 30, 2004 ("BLM Contract"), pursuant to the Materials Act
of 1947 and that part of 43 C.F.R. ss. 3600, et seq., regarding non-competitive
contracts. The BLM Contract involves real property belonging to the United
States of America and more particularly described as Parcel 3 on Attachment A.

     D. For purposes of this Agreement, the area comprised of Parcels 1, 2 and
3, excluding the Leased Property, shall sometimes be referred to herein as the
"APM Property."

     E. Vulcan desires to lease a portion of Parcel 1 more particularly
described on the "Site Plan" to be approved by Vulcan and APM in accordance with
Section 4(b) below (the "Leased Property") for the purpose of operating a hot
mix asphalt plant ("Asphalt Plant"). If desired by Vulcan, a ready mix batch
plant ("Ready Mix Plant") may be operated on an extension to the Leased Property
as described below.

     F. Vulcan desires to use the mineral materials, including basalt, cinders,
sand, gravel and other inert materials (the "Mineral Products") produced by APM
from the Mineral Estate and the BLM Contract for use in the Asphalt Plant and
the Ready Mix Plant.

     G. APM desires to lease the Property to Vulcan for the above-described
purposes and to sell Mineral Products to Vulcan.

                                    AGREEMENT

     NOW THEREFORE, in consideration of the promises and the mutual agreements,
covenants, and provisions contained in this Agreement, APM and Vulcan agree and
declare as follows:

     1. GRANT. APM hereby leases and grants to Vulcan the sole and exclusive
lease and use of the Leased Property. APM shall lease and let the Leased
Property exclusively to Vulcan. During the term of the Agreement, Vulcan shall
have the right to conduct all operations necessary and incident to its
installation and operation of the Asphalt Plant, to purchase Mineral Products
from APM pursuant to the terms of this Agreement and to have such access to the
Leased Property as it reasonably requires to carry out its permitted activities
hereunder, and to do all other things within the Leased Property appropriate to
the foregoing and not in violation of the terms hereof or of any other
applicable law. Vulcan shall also have the right of ingress and egress over the
Leased Property and the adjacent lands of APM in connection with

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the purposes stated herein. APM also grants to Vulcan the right to extend and
modify the Leased Property to accommodate the Ready Mix Plant at any time during
the term of this Agreement. Vulcan's decision to install the Ready Mix Plant
will be accomplished by an amendment to this Agreement by APM and Vulcan
modifying the Site Plan (in accordance with Section 4(b)) to include additional
acreage and to correspondingly increase the Property Rent (described in Section
3(c)(i)) on a pro-rata basis per the additional acreage.

     2. TERM, RENEWAL AND EFFECTIVE DATE.

     (a) TERM. This Agreement shall be for a term of five years commencing on
the effective date hereof.

     (b) RENEWAL Vulcan may renew this Agreement for two (2) five year periods
by sending written notice of its election to renew to APM not less than ninety
(90) days prior to the expiration of any term of this Agreement.

     3. RENT, PLANTS, MINERAL PRODUCTS AND PAYMENTS.

     (a) ASPHALT PLANT AND READY MIX PLANT. Vulcan shall be solely responsible
for all aspects of the acquisition, installation, operation and maintenance of
the Asphalt Plant. Vulcan shall have the right, but not the obligation, to
install and operate the Ready Mix Plant on the modified Leased Premises during
the term of this Agreement, and in such event, Vulcan shall be solely
responsible for all aspects of the acquisition, installation, operation and
maintenance of the Ready Mix Plant.

     (b) MINERAL PRODUCT. Each 12 month period that this Agreement is in effect,
commencing on the Effective Date, APM guarantees, warrants and represents that
it will produce not less than 250,000 tons of Mineral Products which will meet
or exceed the written specifications set forth by Vulcan and delivered to APM.
Consequently, Vulcan agrees to accept and purchase at least 250,000 tons per
year of Mineral Products derived from the Mineral Estate and the BLM Contract.
Subject to subsection 3(c)(ii) below, if APM produces more than 250,000 tons of
Mineral Products, Vulcan shall have the right, but not the obligation to
purchase such materials in accordance with this Agreement. The Mineral Products
shall strictly conform to Vulcan's standards and specifications for the Asphalt
Plant and, if applicable, the Ready Mix Plant.

     (c) CONSIDERATION.

          (i) PROPERTY RENT. Vulcan shall pay APM the sum of Two Thousand Five
Hundred Dollars ($2,500.00) each month that this Agreement is in effect. The
rental payment shall be delivered to APM on the first day of each such month and
shall not be deemed overdue until ten (10) days following written notice from
APM. Rent for partial months at the inception or the termination of this
Agreement shall be prorated.

          (ii) TONNAGE ROYALTY. Vulcan agrees to purchase from APM, at the rate
of XXXXX ($XXX) per ton ("Purchase Price"), all of the Mineral Products
necessary for Vulcan to operate its Asphalt Plant and if applicable, the Ready
Mix Plant. The amount of Mineral Products purchased by Vulcan shall not be less
than the 250,000 tons per year referenced above. If Vulcan determines that APM
is unable to provide Vulcan with sufficient quantities of materials, Vulcan may
obtain any additional minerals and aggregates from outside sources. For the life
of the Agreement and all extensions, any deliveries of Mineral Products ordered
by Vulcan and delivered and/or picked up by a Vulcan client shall be counted
towards fulfillment of Vulcan's guaranteed 250,000 annual minimum requirement
and will be billed by APM to Vulcan at the Purchase Price.

          (iii) HOPPER LOADING FEE. APM shall provide sufficient and suitable
front-end loaders and other necessary machinery and operators to provide the
Mineral Product deliveries described herein to the hoppers designated by Vulcan
at the Asphalt Plant and, if applicable, the Ready Mix Plant.

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Vulcan shall pay APM Twenty Five Cents ($.25) for each ton of Mineral Product
delivered to the hoppers pursuant to this Agreement (the "Hopper Loading Fee").

          (iv) ADJUSTMENTS. Beginning with the first (1st) anniversary of the
Effective Date, and on every anniversary thereafter throughout the term of this
Agreement and any renewal term (the "Adjustment Dates"), the Purchase Price and
Hopper Loading Fee may be reviewed and adjusted by APM. The adjustment shall be
based upon the Producer Price Index for Sand and Gravel, Western Region,
Mountain, (Product Code 1442-38) (Base year 1982-100), published by the United
States Department of Labor, Bureau of Labor Statistics ("PPI"), which is
published for the month of December, 2005 ("Base PPI"). The PPI published for
the month, which is three (3) months prior to the month in which the Adjustment
Date in question occurs ("Adjustment PPI") shall be used in determining the
amount of the adjustment. If adjusted, the Purchase Price and Hopper Loading Fee
for each one (1) year period commencing with an Adjustment Date shall be the
result of multiplying $XXXX (in the case of the Purchase Price) and $0.25 (in
the case of the Hopper Loading Fee) by a fraction, the numerator of which is the
Adjustment PPI and the denominator of which is the Base PPI, provided that in no
event shall the Purchase Price or Hopper Loading Fee be increased by more than
three percent (3%) above the amount payable during, the period immediately
preceding the Adjustment Date or be less than the amount payable during the
period immediately preceding the Adjustment Date. Should the Bureau of Labor
Statistics discontinue the publication of the PPI, or publish the PPI less
frequently, or alter the PPI in some other manner, then APM and Vulcan shall
agree on a substitute index or substitute procedure which reasonably reflects
and monitors sand and gravel producer prices. Before any adjustment is
implemented, APM will review said adjustments with Vulcan at least 60 days prior
to any price change.

          (v) PREFERENTIAL PRICING. In the event APM sells Mineral Product to
any third parties unrelated to Vulcan during the term of this Agreement, the
price that APM charges such third parties for the Mineral Product shall be no
less than five percent (5%) greater than the then existing Purchase Price.

     (d) PAYMENTS.

          (i) PAYMENT AND DELIVERY. At the end of each month that this Agreement
is in effect, APM shall deliver to Vulcan an invoice comprised of each Vulcan
Statement and the APM Statement for the prior month less any Preferential
Pricing reductions pursuant to Section 3(c)(v). The invoice shall be due and
payable by Vulcan to APM within 30 days of Vulcan's receipt thereof. Interest
will accrue at the rate of 1.5% per month if the invoice is not timely paid.

All payments required hereunder may be mailed to APM's mailing address of c/o
Western Power & Equipment, 6407-B Northeast 117th Avenue, Vancouver, WA 98662 or
to any single depository as the parties may instruct. The delivery or the
deposit in the mail of any payment hereunder on or before the due date thereof
shall be deemed timely payment hereunder.

          (ii) CALCULATION. Payments for Mineral Products delivered to the
Asphalt Plant shall be calculated in the following manner: The Purchase Price
shall be determined by the actual weight of Mineral Products ordered by Vulcan
and delivered to the Asphalt Plant and, if applicable, the Ready Mix Plant. Each
delivery shall be weighed in Vulcan's production scales located on the Leased
Property and shall be recorded in Vulcan's records. Vulcan shall deliver APM a
statement detailing the weight of Mineral Products used in production at the
Asphalt Plant for each day of operation during the term of this Agreement (each
a "Vulcan Statement"),

Payments for Mineral Products delivered to Vulcan's off-Property facilities or
customers shall be calculated in the following manner: Vulcan's or its agents'
trucks picking up Mineral Product shall be weighed on APM's truck scales located
adjacent to the Property. APM shall keep daily summary sheets detailing the
total weight of Mineral Products ordered by Vulcan and delivered to Vulcan's off
Property facilities or customers each day. At the end of each month, APM shall
submit an invoice to Vulcan based on APM's summary sheets for that month (each
an "APM Statement").

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     4. USE OF PROPERTY AND SITE.

     (a) USE OF PROPERTY. Vulcan agrees that the Leased Property shall be used
only for the purposes contemplated in the Agreement.

     (b) SITE PLAN. Prior to Vulcan commencing construction of the Asphalt
Plant, Vulcan shall prepare a site plan delineating the exterior boundaries of
the Leased Property and the location and specifications of the Asphalt Plant and
related improvements and equipment ("Site Plan") and shall submit the Site Plan
to APM for approval, which approval shall not be unreasonably withheld. Within
ten (10) days after receipt of the Site Plan, APM shall deliver written notice
to Vulcan specifying that it agrees to the Site Plan or that it has suggested
changes to the Site Plan, in which case such notice shall specifically detail
any requested changes. If APM requests changes, the parties shall promptly meet
and work together in good faith to agree on the Site Plan, Vulcan shall then
resubmit the Site Plan to APM and the parties shall follow the same procedure
set forth above until the Site Plan is approved by both parties. If after four
(4) months following the initial submission of the Site Plan to APM, the Site
Plan has not been approved in a manner adequate to Vulcan, in Vulcan's sole and
absolute discretion, Vulcan may terminate this Agreement upon written notice to
APM. Both APM and Vulcan shall retain copies of the Site Plan. The Site Plan may
not be amended or changed without the approval of both APM and Vulcan. Upon
approval of the Site Plan by Vulcan and APM, the Site Plan shall be deemed the
correct delineation of the Leased Property and shall be substituted in Exhibit
A.

     5. INSPECTION.

     (a) GENERAL. Following execution of this Agreement, Vulcan shall have full
access to the Property for the purposes set forth in this Agreement and may,
along with its representatives, contractors, and agents examine the Leased
Property, conduct soil tests, environmental studies, engineering feasibility
studies, and other tests and studies, and to plan the proposed development and
operation of the Leased Property. Vulcan shall comply with all applicable laws.
Within three (3) days following execution of this Agreement, APM shall provide
Vulcan with copies of all agreements, leases, engineering plans and reports,
site plans, architectural plans, drawings, test and inspection reports,
environmental assessments, surveys, studies, and all other information in APM's
possession relating to the Leased Property. APM and APM's agents shall have the
right to enter the Leased Property upon reasonable notice and at reasonable
times for the purposes set forth in this Agreement and for inspecting the same,
showing the same to prospective purchasers or lenders and conducting any
environmental investigations or environmental remedial work as APM may deem
necessary, as long as such activities by APM or its agents do not interfere with
Vulcan's use of the Leased Property; provided, however, that in order to ensure
the safety of all persons at the site, APM, its representatives, contractors,
and agents, shall at all times comply with Vulcan's safety, health and
environmental policies and procedures while on the Leased Property.

     (b) WEIGHT SCALES AUDIT/CERTIFICATION. APM shall have the right, at APM's
expense, to require Vulcan's weigh scales to be periodically certified/audited
for accuracy. Any state or federal governmental certification or audit showing
Vulcan's weigh scales to be accurate shall be accepted by APM for the period of
time such certification/audit shall be effective and no further
certifications/audits may be requested during that period. APM may not require
such certification/audit more often than two times in any calendar year.

     6. OBLIGATIONS OF VULCAN.

     (a) CONDUCT OF OPERATIONS AND PERMITS. All work and operations done by
Vulcan on the Property shall be done in a good and workmanlike manner and shall
comply fully with all applicable municipal, Pinal County, State of Arizona or
United States of America laws, ordinances or regulations, including but not
limited to all sanitary, health and environmental protection requirements.
Vulcan shall obtain and comply with all applicable construction and operating
permits regarding the Asphalt Plant.

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     (b) PROTECTION FROM LIENS. Vulcan shall pay all expenses incurred by it in
its operations on the Property hereunder and shall allow no liens arising from
any act of Vulcan to remain upon the Property.

     (c) VULCAN'S INSURANCE. Vulcan shall obtain and keep in full force and
effect during the term of this Agreement, workmen's compensation insurance
adequate under the laws of the State of Arizona and general liability insurance
in the amount of at least Two Million Dollars ($2,000,000.00). APM shall be
listed as additional insureds on said policies, which shall be obtained by
Vulcan within thirty (30) days of the Effective Date of this Agreement. At APM's
request Vulcan will provide proof of liability insurance on the part of any
Vulcan subcontractors working on the Property. Vulcan shall promptly deliver to
APM certificates of insurance upon APM's request.

     (d) APM'S INSURANCE. APM agrees to carry during the entire Agreement term
and any extensions thereof casualty and liability insurance equivalent to or in
excess of the coverage typically carried by owners of other comparable
operations in the Pinal County, Arizona area with limits, terms and restrictions
no less than as set forth for Vulcan's insurance in Section 6(c).

     (e) WAIVER OF SUBROGATION. APM and Vulcan each hereby waive any and all
rights of recovery against the other, or against the affiliates, partners,
officers, employees, agents and representatives of the other, for loss of or
damage to such waiving party or its property or the property of the other under
its control to the extent that such loss or damage is insured against under any
insurance policy in force at the time of such loss or damage. Vulcan and APM
shall, upon obtaining the policies of insurance required hereunder, give notice
to the insurance carrier or carriers that the foregoing mutual waiver of
subrogation is contained in this Agreement.

     (f) SECURITY. Vulcan shall provide security for the Leased Property and its
operations thereon. APM assumes no liability for Vulcan's property, equipment or
personnel.

     (g) IMPROVEMENTS AND ELECTRICITY. Vulcan shall have the right to construct
and to remove, at its sole cost and expense, such improvements on the Leased
Property, as it deems reasonably necessary or appropriate for its operations.
Title to the Asphalt Plant, Ready Mix Plant and all improvements made at
Vulcan's expense shall remain in Vulcan. Without limiting the foregoing, Vulcan
shall have the right to construct, erect and maintain, upon any part of the
Leased Property any roads, data transmission and electric lines, other
utilities, and all other facilities necessary or convenient for the access to
and use of the Leased Property. Vulcan is responsible for its own electrical
power to the Leased Property. APM represents and warrants that APS Three (3) -
Phase power is available to the Leased Property. It is Vulcan's responsibility
to contract with APS to have power extended to the Leased Property from existing
lines.

     (h) ENVIRONMENTAL INSPECTION. Prior to commencement of operations on the
Leased Property, Vulcan will arrange for the preparation of an Environmental
Phase I inspection, at Vulcan's sole cost and expense. Vulcan shall deliver the
inspection report to APM upon its completion. Vulcan shall likewise arrange for
and deliver to APM a Phase 1 report upon termination or completion of this
Agreement.

     (i) ENVIRONMENTAL INDEMNIFICATION. Vulcan shall indemnify, defend, and hold
APM and APM's members, managers, employees, agents, and assigns harmless from
and against any and all claims, liabilities, losses, material diminution of
value, demands, fines, damages (including incidental and special damages),
obligations, costs, and expenses (including attorney fees, investigatory
expenses, remediation costs, and related expenses), arising out of or in any way
related to Vulcan's contamination of the Property by any Hazardous Substance (as
defined by any applicable local, state, or federal law or regulation,
hereinafter "Hazardous Substance") directly caused by Vulcan's operations on the
Leased Property or Vulcan's failure to comply with any applicable Hazardous
Substance laws with respect to Vulcan's operations on the Leased Property during
the term of this Agreement.

     (j) ENVIRONMENTAL AND PROPERTY REPRESENTATION. APM has no knowledge of, and
APM has not actually received any notice from any governmental authority
asserting that the Property is not in

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compliance with applicable law or asking to schedule an inspection of the
Property for purposes of determining noncompliance with any applicable law. APM
has no actual knowledge of, and APM has not actually received any notice of any
pending or threatened condemnation or eminent domain proceedings against the
Property. APM has no knowledge of, and APM has not actually received any notice
from any governmental authority asserting that any Hazardous Materials that may
give rise to liability under any applicable law are present, contained, used,
manufactured, handled, created, stored, treated, discharged, released, or buried
on, in or under the Property or transported to or from the Property. APM has not
in the operation of its business within the Property used, manufactured,
handled, created, stored, treated, discharged, released or buried on, in, or
under the Property any Hazardous Materials, APM has not entered into or been
made a party to any agreement, stipulation, or settlement relating to any
Hazardous Material on the Property, including but not limited to, the presence,
containment, use, manufacture, handling, creation, storage, treatment,
discharge, release or burial on, in or under the Property or the transportation
to or from the Property of any Hazardous Material

     (k) TAXES. Real property taxes and assessments on the Property shall be the
sole responsibility of APM. APM shall also be responsible for all other taxes
and expenses related to the Property including rental tax, except that Vulcan
shall be responsible for its own personal property taxes.

     7. OBLIGATIONS OF APM.

     (a) WATER. APM shall provide Vulcan with sufficient water from that certain
"Agreement Between the Central Arizona Water Conservation District and Arizona
Pacific Materials, LLC, providing for the Delivery of Excess Central Arizona
Project Water" by and between APM and Central Arizona Water Conservation
District to maintain Vulcan's operations on the Property at full capacity. In
the event that sufficient water for Vulcan's operations is not available through
the APM-Central Arizona Water Conservation District Agreement, APM and Vulcan
shall cooperate in obtaining water from the Johnson Ranch Utility District or
its agents. Vulcan is responsible for the cost of Vulcan's water usage on a
pass-through cost basis from APM. Vulcan will be billed on a monthly basis for
water usage, and will pay said invoice within 30 days following receipt from
APM, or interest will begin to accrue at the rate of 1.5% per month until paid.
APM will be responsible for dust abatement on all access roads leading up to
Vulcan's parcel, as well as all stockpiled aggregates.

     (b) RENT ABATEMENT Rent payments to APM shall be abated for any period of
time in which Vulcan cannot operate its Asphalt Plant and, if applicable, the
Ready Mix Plant at full capacity due to water shortages, damage to the plants or
any other causes. Similarly, Vulcan's annual 250,000-ton minimum Mineral
Products purchase requirement (but not APM's production requirement) shall be
reduced on a pro-rata basis during periods of involuntary non-use of the plants
at full capacity. Vulcan may terminate this Agreement if sufficient water cannot
be provided to maintain Vulcan's operations on the Property at full capacity.
For purposes of this paragraph, the term "full capacity" means a volume, rate
and quality of production typical of similar asphalt plants and ready mix plants
in the State of Arizona.

     (c) SITE STABILIZATION. Within thirty (30) days following the Effective
Date, APM, at its sole cost and expense, shall lay and stabilize the foundation
of the Asphalt Plant with sufficient crushed basalt aggregate at a grade and
specification that will allow for the construction of the Asphalt Plant in
accordance with Vulcan's construction plans and all applicable laws, ordinances
and regulations.

     8. TITLE MATTERS AND REPRESENTATIONS. APM represents and warrants to Vulcan
that APM owns the fee simple interest in the Property and has the full right,
power and capacity to enter into this Agreement upon the terms set forth herein.
Vulcan represents and warrants to APM that it has the full right, power and
capacity to enter into this Agreement upon the terms set forth herein.

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     9. BREACH, NOTICE AND REMOVAL OF IMPROVEMENTS.

     (a) BREACH. The failure of either party to fully perform under any or all
of the material terms and conditions of this Agreement shall constitute a breach
of this Agreement entitling the offended party to any and all such action
provided by law, including, but not limited to, one or more of the following:
(1) Declare the Agreement at an end and terminated and/or (2) sue for the full
balance due under the Agreement (with a duty to mitigate), and any damages
sustained by the offended party.

     (b) NOTICE. Any breach alleged under this Agreement shall be preceded by a
thirty (30) day written notice of the same to the defaulting party, If the
defaulting party shall exercise in good faith diligent efforts within such
thirty (30) day period to cure the failure specified in the notice but shall not
be able to do so because of the nature of the failure, acts of God, riots, or
labor strikes, then any such failure shall not be considered a breach or default
as long as the defaulting party shall continue to exercise in good faith such
diligent efforts to cure such failure and shall do so within a reasonable period
of time,

     (c) REMOVAL OF IMPROVEMENTS. Upon any termination or expiration of this
Agreement, Vulcan shall have a period of one hundred twenty (120) days from and
after the effective date of termination within which it must remove from the
Property all of its machinery, buildings, structures, facilities, equipment and
other property of every nature and description erected, placed or situated
thereon, except supports placed in shafts, drifts, or openings in the Property
("Vulcan Assets"). Failure of Vulcan to use diligent efforts to remove the
Vulcan Assets within such period shall constitute an abandonment by Vulcan to
APM of the same; provided, however, that Vulcan may still be required to remove
the Vulcan Assets upon notice from APM, which notice shall be given within
thirty (30) days following termination of the Agreement. APM may also, within
fifteen (15) days after its receipt of notice of termination by Vulcan, elect to
purchase any permanent structures placed on the Property by Vulcan. The purchase
price shall be determined by an independent appraiser mutually satisfactory to
the parties which appraisal shall be final. APM shall tender the amount of such
appraisal in legal tender of the United States within thirty (30) days after
completion of the appraisal regardless of whether APM purchases the structures.

If, but only if APM has notified Vulcan in writing that removal of the Vulcan
Assets is required in accordance with the foregoing paragraph, Vulcan shall
continue to pay APM the monthly rent specified in Section (3)(c)(i) as long as
Vulcan's assets remain on the Property after termination of this Agreement;
provided, however, that Vulcan shall pay APM the sum of Three Thousand Seven
Hundred Fifty Dollars ($3,750.00) for each month that the Vulcan Assets remain
on the Property after the 120 day period.

     10. RIGHT OF FIRST REFUSAL. If APM, or APM's heirs, executors, grantees,
successors or assigns, at any time during the Term of this Lease or any
extension thereof, receive an offer to purchase any of APM's real property,
assets and liabilities located in Pinal County, State of Arizona ("Pinal
Property"), and APM desires to accept such offer; or should APM during any such
time make an offer to sell any of the Pinal Property, APM shall give Vulcan
thirty (30) days notice in writing of such offer setting forth the name and
address of the proposed purchaser, the amount of the proposed purchase price,
and all other terms and conditions of such offer, and Vulcan shall have the
first option to purchase the Pinal Property which is the subject of the offer by
giving written notice to APM of its intention to purchase within said thirty
(30) day period at the same price and on the same terms of any such offer, it
being understood that in the event Vulcan does not give notice of its intention
to exercise such option to purchase within such period, (i) this Agreement and
all of its terms and conditions shall nevertheless remain in full force and
effect and APM and any purchaser or purchasers of the Property, shall be bound
thereby, and (ii) APM shall not sell any of the Pinal Property on terms and
conditions more favorable than those contained in the offer presented to Vulcan.
In the event that the Final Property set forth in the offer is not sold for any
reason, Vulcan shall have, upon the same conditions and notice, the continuing
right of first refusal to purchase the Pinal Property or any part thereof upon
the terms of any subsequent offer or offers to purchase.

     11. CONFIDENTIALITY. APM and Vulcan agree that all information, documents
and other materials exchanged by and between themselves pursuant to this
Agreement shall be used solely for the purposes of pursuing the goals of this
Agreement, and that such information, documents and other

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materials shall be kept confidential by the parties, their employees and their
representatives. Vulcan agrees that it will not enter into any contractual
arrangement with the Bureau of Land Management, United States Department of the
Interior or with the State of Arizona Land Department to acquire an interest or
right in the land or minerals contained in Parcels 1, 2 or 3.

     12. QUIET ENJOYMENT. APM covenants and agrees that Vulcan shall have the
peaceful and quiet possession and enjoyment of the Leased Property for the
conduct of its business operations during the term of this Agreement, without
hindrance by APM or any party whatsoever.

     13. NONDISTURBANCE. This Agreement is contingent upon APM providing to
Vulcan a non-disturbance agreement from its existing lender(s) (if any), which
states that the right of possession of Vulcan to the Property shall not be
affected or disturbed by any mortgagee or deed of trust holder in the exercise
of any of its rights under a deed of trust, mortgage or the note secured
thereby, and any sale of the Property pursuant to the exercise of any rights and
remedies under a mortgage, deed of trust or otherwise shall be made subject to
Vulcan's right of possession to the Property under this Agreement.

     14. NON-COMPETITION. APM and its affiliates will not directly or indirectly
own, manage, operate, join or control an Asphalt Plant within Pinal County,
Maricopa County, or Pima County, Arizona ("Territory") or allow any third party
to operate an Asphalt Plant on property owned, leased, licensed or permitted by
APM within the Territory, at any time during the term of this Agreement APM and
its affiliates will not directly or indirectly own, manage, operate, join or
control a Ready Mix Plant within the Territory or allow any third party to
operate a Ready Mix Plant on property owned, leased, licensed or permitted by
APM within the Territory, at any time during the term of the Agreement;
provided, however, in the event Vulcan does not provide written notice to APM of
its intent to construct and operate a Ready Mix Plant on the Leased Property (or
expanded Leased Property) within eighteen (18) months following the Effective
Date, APM may seek to install and operate no more than one (1) Ready Mix Plant
on the APM Property (as defined in Recital D). Notwithstanding the foregoing,
Vulcan may still construct and operate a Ready Mix Plant in accordance with this
Agreement regardless of whether it notifies APM of such intent within the
aforementioned time period. APM expressly agrees that the geographic
restrictions contained herein are reasonable in its scope and geographic
restraints.

     15. LIMITATION OF LIABILITY. No constituent member, partner or shareholder
in or agent of Vulcan or APM, nor any advisor, trustee, director, officer,
employee, beneficiary, shareholder, member, partner, participant, representative
or agent of any partnership, limited liability company, corporation, trust or
other entity that has or acquires a direct or indirect interest in Vulcan or
APM, shall have any personal liability, directly or indirectly, under or in
connection with this Agreement or any agreement made or entered into under or
pursuant to this provisions of this Agreement, or any amendment or amendments to
any of the foregoing made at any time or times heretofore or hereafter. Vulcan,
APM and their successors and assigns and, without limitation, all other persons
and entities, shall look solely to Vulcan's and APM's assets for the payment of
any claim or for any performance, and Vulcan and APM, on behalf of themselves
and their successors and assigns, hereby waive any and all such personal
liability. In no event shall APM or Vulcan be entitled to punitive or
consequential damages under this Agreement. The foregoing shall be in addition
to, and not in limitation of, any further limitation of liability that might
otherwise apply (whether by reason of APM's or Vulcan's waiver, relinquishment
or release of any applicable rights or otherwise).

     16. NOTICE. Any notice or communication required or permitted hereunder
shall be effective when personally delivered or deposited, postage prepaid,
certified or registered, in the United States mail to the addresses specified
below. Either party may; by notice to the other party, change its mailing
address for future notices.

APM:                                          With a copy to:

Arizona Pacific Materials, LLC                Western Power & Equipment Corp.
P. O. Box 40937                               6407-B NE 117'h Avenue
Mesa, AZ. 85274                               Vancouver, WA. 98662

                                        8
<PAGE>

VULCAN:                                       With a copy to:

Vulcan Materials                              Snell & Wilmer L.L.P,
2526 E. University Drive                      One Arizona Center
Phoenix, AZ 85034                             Phoenix, AZ 85004
Attn: Mark Reardon                            Attn: Jonathan E. Frank, Esq.

     17. ADDITIONAL DOCUMENTS. APM and Vulcan agree to deliver, or cause to be
delivered to the other all instruments necessary and required to carry out and
complete the terms of the Agreement and not already specifically described
herein.

     18. ENTIRE CONTRACT. This Agreement revokes and supersedes any and all
agreements) previously entered into by the parties with respect to the subject
matter hereof. Neither APM nor Vulcan has made any representations, warranties,
inducements, or oral agreements except as expressly set forth herein. APM and
Vulcan may not change, modify or rescind this Agreement except in writing,
signed by both and any attempt at oral modification of this Agreement shall be
void and of no effect.

     19. HEADINGS. The descriptive headings of the paragraphs and subparagraphs
of the Agreement are intended for convenience only, and do not constitute parts
of this Agreement.

     20. COUNTERPARTS. This Agreement may be executed simultaneously in two or
more counterparts, including facsimiles thereof, each of which will be deemed an
original, but all which together will constitute one and the same instrument The
invalidity of any provisions of this Agreement as determined by a court of
competent jurisdiction shall in no way affect the validity of any other
provision herein.

     21. GOVERNING LAW AND ATTORNEYS' FEES. This Agreement will be construed in
accord with, and any dispute or controversy arising from any breach or asserted
breach of this Agreement will be governed by the laws of the State of Arizona.
In the event of any judicial proceeding to enforce any provision of this
Agreement, the prevailing party shall recover its reasonable attorneys' fees,
expenses and costs of investigation.

     22. REASONABLE CONSENT/APPROVAL. Wherever in this Agreement the consent or
approval of either party is required, unless expressly noted otherwise herein,
said consent or approval shall not be unreasonably withheld, delayed or
conditioned.

     23. TIME IS OF THE ESSENCE. Time is of the essence of this Agreement and
the performance of all duties and obligations set forth or referenced herein.

     24. TIME PERIODS. Except as expressly provided for herein, the time for
performance of any obligation or taking any action under this Agreement shall be
deemed to expire at 6:00 o'clock p.m. (Phoenix time) on the last day of the
applicable time period provided for herein. If the time for the performance of
any obligation or taking any action under this Agreement is not expressly
designated based upon calendar days and said time expires on a Saturday, Sunday
or legal holiday, the time for performance or taking such action shall be
extended to the next succeeding day which is not a Saturday, Sunday or legal
holiday.

     25. GOOD FAITH AND FURTHER DOCUMENTATION. Each party agrees in good faith
to cooperate with the other in the performance of the duties and obligations set
forth herein and to execute such further or additional documents as may be
necessary or appropriate to fully carry out the intent and purpose of this
Agreement.

                                        9
<PAGE>

     IN WITNESS WHEREOF, The parties have executed this Agreement of the dates
indicated at their respective signatures below.

                                       10
<PAGE>

DATED as of the day and year first above written.

Arizona Pacific Materials, LLC
An Arizona limited liability company

By: /s/ Dean McLain
    ----------------------
Name: Dean McLain
Its: President and CEO

CalMat Co., a Delaware Corporation
dba Vulcan Materials Company
Western Division

By: /s/ Mark Reardon
    ----------------------
Name: Mark Reardon
Its: Vice President and General Manager

                                       11EMPLOYMENT AGREEMENT

     Employment  Agreement ("Agreement"), dated as  of  June  10,
2005 (the "Commencement Date"), between Stephen N. Barthelmes Jr.
[residing at the address set forth on Schedule A] (the "Employee")
and   Stealth   Microwave,   Inc.,  a  New   Jersey   corporation
("Stealth").

      In  consideration of the terms and mutual covenants  herein
contained, the Employee and Stealth agree as follows:

     1. Term of Employment.  Stealth hereby employs the Employee,
and  the  Employee hereby accepts employment by Stealth, for  the
period  commencing on the Commencement Date and continuing  until
the  second anniversary of the Commencement Date, unless  at  any
time terminated earlier in accordance with Section 7 hereof  (the
"Employment Period").

      2.  Capacity. The Employee shall serve as the President and
Chief  Executive Officer of Stealth and shall only perform duties
and  functions consistent with such position and consistent  with
those  performed  by him for Stealth prior to  the  date  hereof.
Employee  at  all  times shall be treated as a  senor  executive.
Without  limiting the generality of the preceding  sentence,  the
Employee  shall  be  provided with his current  office  and  with
secretarial services and other services consistent with Stealth's
current practices as in effect prior to the date hereof.   Except
for  travel  from  time to time reasonably consistent  with  past
practices to perform his duties hereunder, Employee shall not  be
required  to  perform his duties hereunder at any location  other
than Stealth's present location in Trenton, New Jersey.

      3.  Full-Time  Employment. The Employee  shall  devote  his
entire business and professional time, attention and energies  to
the  performance of his duties to Stealth and shall not, directly
or  indirectly,  actively engage in or concern himself  with  any
other   activities  or  commitments  which  interfere  with   the
performance   of   his  duties  hereunder  or  which,   even   if
non-interfering,  may  be  inimical  or  contrary  to  the   best
interests of Stealth.

      4. Compensation and Benefits. For all services rendered  by
the  Employee  to Stealth, Stealth shall pay and provide  to  the
Employee during the Employment Period the following compensation:

           (a) Base Salary. The Employee shall be entitled to  an
annual  base  salary of $132,890 from the date of this  Agreement
until  the expiration of the Employment Period. This base  salary
may  be  increased  (but  may not be reduced)  by  the  Board  of
Directors of Stealth during the Employment Period.

           (b)  Annual Bonus. In addition to the salary described
in  Section  4(a)  above,  the Employee shall  receive  lump  sum
bonuses  in respect of the period beginning on April 1, 2005  and
ending  on  March  31, 2006 (the "First Bonus  Period")  and  the
period beginning April 1, 2006 and ending on March 31, 2007  (the
"Second  Bonus  Period").   The Employee  shall  be  entitled  to
receive such bonus for the First Bonus Period equal to (a)  $0.15
for  every dollar that Stealth's Actual Pre-Tax Income  (as  such
term  is  defined in that certain Earnout Agreement (the "Earnout
Agreement"),  dated  as  of  the  date  hereof,  by   and   among
Micronetics,   Inc.,  a  Delaware  corporation   ("Micronetics"),
Stealth and the Sellers (as defined therein)) for the First Bonus
Period exceeds $2,400,000 but does not exceed $3,100,000, and (b)
$0.25  for every dollar that Stealth's Actual Pre-Tax Income  for
the First Bonus Period exceeds $3,100,000. The Employee shall  be
entitled to receive such bonus for the Second Bonus Period  equal
to  (x)  $0.15  for  every dollar that Stealth's  Actual  Pre-Tax
Income  for the Second Bonus Period exceeds $2,650,000  but  does
not  exceed  $3,350,000,  and (y) $0.25  for  every  dollar  that
Stealth's  Actual  Pre-Tax Income for  the  Second  Bonus  Period
exceeds  $3,350,000.  For the purposes of this Agreement,  Actual
Pre-Tax Income shall be the amount thereof as determined pursuant
to  the Earnout Agreement, or in the case of the acceleration  of
the  payment  of the maximum Performance Earnout(s)  pursuant  to
Section  3  of  the  Earnout Agreement, in  accordance  with  the
principles  and procedures set forth in the Earnout Agreement  as
applicable to the determination of Actual Pre-Tax Income.

           (c) Payment of Salary and Bonus. The Employee's salary
under  Section  4  (a)  above shall be  payable  in  regular  and
substantially  equal  installments in accordance  with  Stealth's
normal schedule for the payment of executive salaries. Any  bonus
payable under Section 4(b) above shall be paid to the Employee on
the  same  date  as  the date upon which the  Earnout  Amount  in
respect of the period for which the bonus is determined shall  be
paid  to the Sellers under the Earnout Agreement (or in the  case
of  the  acceleration  of the payment of the maximum  Performance
Earnout(s) pursuant to Section 3 of the Earnout Agreement, by the
earlier to occur of (a) the expiration of 15 days after the  date
of  filing  with  the Securities and Exchange Commission  of  the
Buyer's Annual Report on Form 10-KSB with respect to the relevant
period,  and (b) the expiration of 100 days after March 31,  2006
or  March  31,  2007,  as  the case  may  be)(such  date,  as  so
determined, the "Bonus Payment Date").

          (d) Equity Incentive Compensation Arrangements.

           (i) The Employee shall also be eligible to participate
during  the term of his employment under this Agreement  in  such
equity  incentive  compensation  arrangements  as  are  generally
provided by Micronetics for the executives of Micronetics and its
subsidiaries that hold positions of substantially similar  levels
of responsibility as that of the Employee.

           (ii)  In  addition, Micronetics hereby grants  to  the
Employee  stock options (the "Options") which shall  entitle  the
Employee  to acquire 125,000 shares of Micronetics common  stock,
par  value  $0.01 per share (as such title or par  value  may  be
amended)  ("Shares"), for a per Share exercise  price  of  $8.00,
determined in accordance with the provisions of Section  6(c)(ii)
of  the  Plan  (as  hereinafter defined), and  to  exercise  such
options,  to  the extent such options have become vested,  within
five  years  following  the  date  hereof,  except  as  otherwise
provided in Section 7 hereof.

           (iii) Such options include incentive stock options (as
defined  in Section 422 of the Internal Revenue Code of 1986,  as
amended) to acquire 40,000 Shares, which incentive stock  options
(the "Incentive Options") are hereby awarded pursuant to the 2003
Stock  Incentive  Plan of Micronetics, Inc. (the  "Plan").   Such
options  also include non-qualified stock options to  acquire  an
additional 85,000 Shares, which non-qualified options are  hereby
awarded  outside  of  the Plan (or any other  stock  option  plan
previously adopted by the Company).

           (iv)  25%  of  the  Options shall  vest  on  the  date
immediately  preceding the first anniversary of the  grant  date,
25%  of  the Options shall vest on the date immediately preceding
the  second  anniversary of the grant date, 25%  of  the  Options
shall   vest  on  the  date  immediately  preceding   the   third
anniversary of the grant date, and 25% of the Options shall  vest
on  the date immediately preceding the fourth anniversary of  the
grant  date.  Additional terms with respect to the stock  options
granted pursuant to this Section 4(d) are set forth in Exhibit  A
attached  hereto,  provided, in the event of a  conflict  between
such  additional terms and the terms of the Plan, then the  terms
of the Plan shall control with respect to the Incentive Options.

       (v)  The  Incentive  Options  granted  hereunder  may   be
exercisable, and shall be exercised, in accordance with the terms
set   forth   herein  and  the  terms  of  the  Plan   (and   the
Administrator,  as  defined  in the  Plan,  shall  not  determine
otherwise without the Employee's prior written consent).

      (vi)   Within  90  days after the date of  this  Agreement,
Micronetics  agrees  to  file with the  Securities  and  Exchange
Commission,  a  Registration  Statement  on  Form  S-8  or  other
appropriate  form under the Securities Act of 1933  (the  "Act"),
relating  to the Options and the Shares, provided that  (i)  such
form  is available under the Act with respect to the Options  and
the  Shares  and (ii) Micronetics is eligible to  use  such  form
under  the Act.  Micronetics will use its commercially reasonable
efforts  to cause such Registration Statement to remain effective
until  the  exercise or expiration of the Options.  Additionally,
Micronetics shall take such steps as may be required to cause the
listing  of the Shares on the NASDAQ Small Cap Market.

          (e) Withholding Taxes. The Employee agrees that Stealth
shall  withhold from any and all payments required to be made  to
the Employee pursuant to this Agreement all federal, state, local
and/or other taxes that are required to be withheld in accordance
with applicable statutes and/or regulations from time to time  in
effect.

      5.  Employment Benefit Plans. Stealth agrees to provide  to
the  Employee, during the Employment Period, hospitalization  and
other medical and health benefits, life insurance, paid holidays,
paid   vacation  and  other  benefits  on  terms  and  conditions
equivalent   to  those  provided  by  Stealth  to  other   senior
executives  of  Stealth as of the date immediately preceding  the
date  of  this Agreement.  Further, until March 31, 2006, Stealth
shall  use its best efforts to maintain in force and effect,  and
the employee shall continue to be eligible to participate in, the
employee benefit plans maintained by Stealth on the date  hereof.
Thereafter,  during the remainder of the term of  his  employment
under   this  Agreement,  the  Employee  shall  be  eligible   to
participate  in such employee benefit plans as Micronetics  shall
establish or maintain from time to time for senior executives  of
Micronetics,  Inc.  and its subsidiaries; provided  however,  the
employee  benefits provided for in this Section  5  shall  be  in
addition  to  those  provided  for  in  other  Sections  of  this
Agreement.

      6.   Reimbursement.  Stealth shall promptly  reimburse  the
Employee for all reasonable business expenses incurred by him  in
connection  with his performance of his duties to  Stealth,  upon
reasonable substantiation of such expenses.

     7.  Termination of Employment.

           (a)   Termination  Without Cause or For  Good  Reason.
Stealth  expressly reserves the right to terminate the employment
of  the  Employee hereunder other than for Cause (as  defined  in
Section  7(c) below) and other than as provided in Sections  7(d)
and  7(e)  below, provided Stealth shall have given Employee  not
less   than  thirty  (30)  days  prior  written  notice  of  such
termination;   and the Employee expressly reserves the  right  to
terminate  his employment hereunder for Good Reason  (as  defined
below in this Section 7(a)) or without Good Reason.  In the event
that  the Employee's employment shall have been so terminated  by
Stealth  other  than for Cause and other than for  disability  or
death pursuant to Section 7(d) or 7(e) below, or in the event the
Employee terminates his employment hereunder for Good Reason, the
Employee shall be entitled to receive his base salary at the rate
in  effect  on the date of such termination of employment,  until
the  second anniversary of the Commencement Date, plus  his  cash
bonus in respect of each of the First Bonus Period and the Second
Bonus  Period, which shall be determined and paid in  the  manner
and  at  the  times  provided in Sections 4(b)  and  4(c)  hereof
irrespective  of  such  employment termination,  plus  all  other
benefits provided for in this Agreement (or at Stealth's election
the  reasonable  equivalent thereof in cash  payments);  and  the
Options  that have vested prior to such termination shall  remain
vested   and   exercisable  irrespective   of   such   employment
termination.   In the event that the Employee's employment  shall
have  been  terminated by Stealth other than for Cause and  other
than  for  disability or death pursuant to Section 7(d)  or  7(c)
below,  then  the Options that were not previously  vested  shall
automatically  become  fully  vested  on  the  date   immediately
preceding the date of such termination.

     The  term "Good Reason" shall mean (i) any breach by Stealth
or  Micronetics of any of the terms of this Agreement or the Plan
that  is  not cured within thirty (30) days following receipt  of
written  notice  from  the Employee, or  that  is  so  cured  but
thereafter   repeated,  and/or  (ii)  the   occurrence   of   any
Acceleration Event (as defined in the Earnout Agreement).

           (b)   Voluntary  Termination. In the  event  that  the
Employee  shall  terminate  his employment  voluntarily  for  any
reason other than Good Reason, the Employee shall be entitled  to
receive his base salary at the rate in effect on the date of such
termination  of  employment through the date of such  termination
and  no  other  benefits,  including, without  limitation,  those
provided  for under Section 4(b) of this Agreement (except  those
that  cannot  be  divested  pursuant to the  Employee  Retirement
Income Security Act of 1974, as amended or other applicable law),
provided the Employee shall also be entitled to receive any  then
unpaid expense reimbursement pursuant to Section 6 hereof and any
unpaid amount of the cash bonus payable pursuant to Section  4(b)
in  respect  of  the  First Bonus Period  if  the  date  of  such
termination occurs after the end of the First Bonus Period.   The
Employee's rights with respect to all unexercised options granted
pursuant  to  Section  4(d)  hereof  shall  terminate  upon   the
termination of employment pursuant to this Section 7(b).

           (c)  Termination for Cause. If at any time during  the
term of this Agreement, Stealth shall terminate the employment of
the  Employee  for  Cause (as hereinafter defined)  the  Employee
shall be entitled to receive only his base salary to the date  of
such  termination  and  no  other  benefits,  including,  without
limitation,  those  provided  for  under  Section  4(b)  of  this
Agreement (except those that cannot be divested pursuant  to  the
Employee  Retirement Income Security Act of 1974, as  amended  or
other  applicable  law),  provided the  Employee  shall  also  be
entitled   to  receive  any  then  unpaid  expense  reimbursement
pursuant  to Section 6 hereof and any unpaid amount of the  bonus
payable  pursuant to Section 4(b) in respect of the  First  Bonus
Period  if the date of such termination occurs after the  end  of
the  First  Bonus Period.  The Employee's rights with respect  to
all  unexercised options granted pursuant to Section 4(d)  hereof
shall  terminate upon the termination of employment  pursuant  to
this Section 7(c).

     The term "Cause" shall mean the Employee being convicted  of
a felony, or the Employee being convicted of committing an act of
intentional  dishonesty or fraud against, or the misappropriation
of  property belonging to, Stealth or Micronetics, but only  once
any such conviction becomes final and non-appealable.

           (d)  Disability.  In the event that the Employee shall
sustain  a  disability  and be unable to  perform  the  essential
functions   of   his   position,  with  or   without   reasonable
accommodation, as shall have been certified by at least  one  (1)
duly  licensed and qualified physician approved by the  Board  of
Directors  of  Stealth,  Stealth shall continue  to  pay  to  the
Employee while such disability continues the full amount  of  his
base  salary as set forth in Section 4(a) hereof for  the  period
between  the date upon which such disability shall have  been  so
certified  and  the  date  upon which the  employee  shall  first
receive  regular  periodic  disability payments  under  Stealth's
group  disability insurance policy. Thereafter, if the Employee's
disability shall continue (as evidenced by the continued  absence
of  the Employee from his duties), the employment of the Employee
under  this Agreement shall terminate and all obligations of  the
Employee  shall cease provided the Employee shall be entitled  to
receive  only  the payment of any amounts of the Employee's  base
salary  then  remaining  to  be paid under  Section  4(a)  hereof
through the date of the termination of the Employee's employment,
plus  any  unpaid  amount of the cash bonus for the  First  Bonus
Period  if  such termination occurs after the end  of  the  First
Bonus  Period and a pro-rated portion (based upon the  number  of
days  of  the applicable bonus period that have elapsed prior  to
the date of his death) of the Employee's cash bonus in respect of
the bonus period hereunder during which the employee's disability
occurred,  determined  and paid in the manner  and  at  the  time
provided  in Sections 4(b) and 4(c) hereof, plus any then  unpaid
expense  reimbursement  pursuant to Section  6  hereof;  and  the
Options  that have vested prior to such termination shall  remain
vested   and   exercisable  irrespective   of   such   employment
termination.  Any physician certification regarding  whether  the
Employee  is disabled pursuant to this Section shall  be  binding
upon Stealth and the Employee.

           (e)   Death.   In  the event of the  Employee's  death
during  the  term  of  this Agreement, the Employee's  employment
hereunder  shall  immediately terminate and, in such  event,  the
Employee's  estate  shall be entitled to receive  the  Employee's
base  salary  to  the  last day of the  month  during  which  the
Employee's death shall have occurred, plus  any unpaid amount  of
the  cash  bonus  for the First Bonus Period if such  termination
occurs  after the end of the First Bonus Period and  a  pro-rated
portion  (based  upon the number of days of the applicable  bonus
period  that have elapsed prior to the date of his death) of  the
Employee's  cash  bonus in respect of the bonus period  hereunder
during  which the employee's death occurred, determined and  paid
in  the manner and at the time provided in Sections 4(b) and 4(c)
hereof,  plus any then unpaid expense reimbursement  pursuant  to
Section 6 hereof; and the Options that have vested prior to  such
termination  shall remain vested and exercisable irrespective  of
such employment termination.

      8.  Noncompetition and Non-Solicitation.  (a)  The Employee
agrees that until July 14, 2007, he shall not:

               (i)    compete   with   Stealth   by   developing,
          producing,   distributing,   marketing,   selling    or
          assisting  any Person to develop, produce,  distribute,
          market or sell, a product or service which is known  by
          him to be competitive with the products or services  of
          Stealth  then  existing  or planned  (as  evidenced  by
          Stealth's  business records) for the future;  nor,  for
          the  same  period,  for  any  reason,  will  he  accept
          employment from or have any other relationship with any
          Person which is known by him to be competitive with the
          products or services of Stealth then existing or  which
          were  known  by  him  to be planned  (as  evidenced  by
          Stealth's  business records) for the future;  it  being
          agreed  that, in view of the global nature of Stealth's
          business,   the  foregoing  restrictions  shall   apply
          worldwide.

               (ii)  employ or solicit, or receive or accept  the
          performance   of   any  services  by,   any   employee,
          consultant or contractor known by him to be employed by
          and/or  engaged  by Stealth, or any such  person  whose
          employment or engagement with Stealth is known  by  him
          to  have  terminated within the six  (6)  month  period
          prior to July 14, 2007.

               (iii)   solicit, entice away or divert any  person
          or  entity  who is then a customer or supplier  of,  or
          provider  of services to Stealth and who was a customer
          or  supplier of, or provider of services to, Stealth at
          any  time within the twelve (12) month period prior  to
          the July 14, 2007.

          (b)   If any provision contained in this Section 8 will
     for any reason be held invalid, illegal or unenforceable  in
     any respect, such invalidity, illegality or unenforceability
     will not affect any other provisions of this Section 8,  but
     this Section 8 will be construed as if such invalid, illegal
     or  unenforceable provision had never been contained herein.
     It  is  the  intention of the parties that  if  any  of  the
     restrictions or covenants contained herein is held to  cover
     a geographic area or to be for a length of time which is not
     permitted by applicable law, or in any way construed  to  be
     too  broad or to any extent invalid, such provision will not
     construed  to  be null, void and of no effect,  but  to  the
     extent  such  provision would be valid or enforceable  under
     applicable  law,  a  court  of competent  jurisdiction  will
     construe  and interpret or reform this Section 8 to  provide
     for  a  covenant  having the maximum enforceable  geographic
     area,  time  period and other provisions (not  greater  than
     those  contained  herein) as will be valid  and  enforceable
     under  such applicable law.  The Employee acknowledges  that
     Stealth  would be irreparably harmed by any breach  of  this
     Section 8 and that there would be no adequate remedy at  law
     or  in  damages to compensate Stealth for any  such  breach.
     The  Employee  agrees  that  Stealth  will  be  entitled  to
     injunctive  relief  requiring specific  performance  by  the
     Employee of this Section 8, and the Employee consents to the
     entry thereof.

     The   provisions  of  this  Section  8  shall  automatically
terminate with respect to the Employee in the event that  Stealth
fails  to  make any payment in full to him when due  pursuant  to
this Agreement, or terminates the Employee's employment hereunder
without   Cause,  or  the  Employee  terminates  his   employment
hereunder  for Good Reason, or Micronetics breaches  any  of  its
obligations arising under or in relation to Section 4(d)  hereof,
in  each  case  if such default is not cured within fifteen  (15)
days following the giving of notice by him any such of default.

     9.   Binding Effect.  This Agreement shall be binding  upon
Stealth, the Employee and, in relation to Sections 4(d), 7 and 9
through  14 hereof, Micronetics, and shall inure to the  benefit
of  Stealth,  Micronetics and the Employee and their  respective
heirs,   executors,   administrators,   legal   representatives,
successors and assigns.

     10.   Notices.  All notices required or permitted  hereunder
shall  be  in writing and deemed effectively given upon  personal
delivery  or  upon  deposit  in  the  United  States  mails,   by
registered or certified mail, postage prepaid, addressed  to  the
other  party  hereto at the address set forth in the introductory
paragraph  of  this  Agreement,  or  at  such  other  address  or
addresses  as  either  party  shall designate  to  the  other  in
accordance with this Section 10.

     11.   Entire Agreement.  This Agreement (together  with  the
relevant provisions of the Plan) constitutes the entire agreement
between  the  parties,  and supersedes all prior  agreements  and
understandings, relating to the subject matter of this Agreement.

      12.   Amendment.  This Agreement may be amended or modified
only  by  a written instrument executed by both Stealth  and  the
Employee.

     13.  Headings.  The Paragraph and subparagraph headings used
in  this  Agreement are for convenience only  and  shall  not  be
deemed to be a party of this Agreement.

     14.   Governing Law; Jurisdiction.  This Agreement shall  be
construed,  interpreted  and  enforced  in  accordance  with  the
internal laws of the State of New Jersey.

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

                                   STEALTH MICROWAVE, INC.

                                   By:David Robbins
                                   its Vice President

                                   EMPLOYEE:/s/Stephen N. Barthelmes, Jr.

                                   Stephen N. Barthelmes Jr.

The  undersigned,  being the holder of  all  of  the  issued  and
outstanding shares of the capital stock of Stealth, hereby  joins
and  becomes  a  party to the foregoing Employment Agreement  for
purposes of  Sections 4(d),  7 and 9 through 14 thereof.

                                   MICRONETICS, INC.

                                   By:   /s/David Robbins
                                         David Robbins,
                                         Its President and CEO

                                                       Exhibit A

                  Additional Option Provisions

     a.    The term "Shares" shall be deemed to include any other
equity   securities  that  may  be  issued  by  the  Company   in
substitution therefor.  The number of Shares to be received  upon
the exercise of the options may be adjusted from time to time  as
hereinafter  set  forth.  The term "Company" means  and  includes
Micronetics  as  well as (i) any successor corporation  resulting
from the merger or consolidation of such corporation with another
corporation,  or  (ii) any corporation to which such  corporation
has  transferred  its  property  or  assets  as  an  entirety  or
substantially as an entirety.

      b.   The options, to the extent vested, may be exercised in
whole or in part at any time or from time to time until the fifth
anniversary  of  the  date  of  the grant,  except  as  otherwise
provided in Section 7 hereof.

     c.   The Company shall at all times reserve for issuance and
delivery  all  Shares issuable upon the maximum exercise  of  the
options.   All  Shares  issued  to the  Employee  shall  be  duly
authorized and, when issued upon exercise in compliance with  the
terms of this Agreement, shall be validly issued, fully paid  and
non-assessable.   No  fractional shares  or  script  representing
fractional  shares  shall  be issued upon  the  exercise  of  the
options,  but the Company shall pay the Employee an amount  equal
to  the applicable exercise price multiplied by such fraction  in
lieu  of  each fraction of a share otherwise called for upon  any
exercise of the options.

      d.    The number of Shares that the Employee has the option
to  acquire  and the exercise price shall be deemed automatically
adjusted  equitably  and proportionately  to  reflect  any  stock
dividend,  stock split, reverse stock dividend or  reverse  stock
split or any recapitalization of the Company.

      e.    Subject to the terms of the Plan with respect to  the
Incentive Options, if the Company is a party to a merger, sale of
all  or substantially all of its assets, share exchange or  other
similar  business  combination  transaction,  the  options  shall
pertain  and  apply  to the securities and/or other  property  to
which the number of Shares covered by the options would have been
entitled had the options then been exercised in whole.

      f.    In case the Company shall establish a record date for
the  holders of its Shares for the purpose of entitling  them  to
receive  any  dividend or other distribution,  or  any  right  to
subscribe for, purchase or otherwise acquire any shares of  stock
of  any  class  or any other securities or to receive  any  other
right;

       of   any  capital  reorganization  of  the  Company,   any
reclassification  of  the  capital  stock  of  the  Company,  any
consolidation  or  merger of the Company  with  or  into  another
corporation,  any share exchange for shares of capital  stock  of
another corporation or any conveyance of all or substantially all
of the assets of the Company to another corporation;

      of any voluntary or involuntary dissolution, liquidation or
winding up of the Company; or

     the Company shall enter into a letter of intent or agreement
with  respect  to  a transaction by which all of the  outstanding
shares  of  Common Stock of the Company are to be acquired  by  a
third party;

      then  the Company shall mail or cause to be mailed  to  the
Employee at the time outstanding a notice specifying, as the case
may  be,  (i) the date on which a record is to be taken  for  the
purpose of such dividend, distribution or rights, and stating the
amount  and  character of such dividend, distribution or  rights,
(ii)  the  date  on  which such reorganization, reclassification,
consolidation,  merger, conveyance, dissolution,  liquidation  or
winding up is to take place, and the time, if any is to be fixed,
as  to which the holders of record of Shares shall be entitled to
exchange   their   shares  for  securities  or   other   property
deliverable upon the completion of such transaction, or (iii) the
closing  of  the  acquisition by a third  party  of  all  of  the
outstanding  Shares.  Such notice shall  be  mailed  as  soon  as
practicable after the occurrence or likelihood of such  event  is
publicly disclosed.

      g.    The  Options and the right to purchase  Common  Stock
hereunder are personal to the holder and shall not be transferred
to  any  other person, other than by will or the laws of  descent
and distribution.

     h.   The provisions of this subparagraph (h) shall remain in
effect  only  until  the  Shares have been  registered  with  the
Securities and Exchange Commission pursuant to the provisions  of
Section  4(d)(vii) of this Agreement, and such  registration  has
become  effective, whereupon the provisions of this  subparagraph
(h) shall terminate and shall be of no further force and effect.

      The Employee, by acceptance hereof, represents and warrants
as follows:

          (i)  The Employee has been advised and understands that
the  Options  have been issued in reliance upon  exemptions  from
registration  under  the  Securities  Act  and  applicable  state
statutes;  the exercise of the Options and resale of the  Options
and   the  Common  Stock  have  not  been  registered  under  the
Securities Act or applicable state statutes and must be held  and
may  not be sold, transferred, or otherwise disposed of for value
unless they are subsequently registered under the Securities  Act
or  an  exemption from such registration is available; except  as
set  forth herein, the Company is under no obligation to register
the  Options  or  the  Shares under the  Securities  Act  or  the
applicable  state statutes; in the absence of such  registration,
the  sale  of  the  Options  or the  Shares  may  be  practicably
impossible;  the  Company's registrar  and  transfer  agent  will
maintain  stop-transfer  instructions  against  registration   or
transfer of the Options and the Shares and any certificate issued
upon exercise of the Options representing the Shares will bear on
its face a legend in substantially the following form restricting
the sale of the Shares:

          THE  SECURITIES  REPRESENTED BY  THIS  CERTIFICATE
          HAVE NOT BEEN REGISTERED UNDER THE SECURITIES  ACT
          OF 1933, AS AMENDED (THE "SECURITIES ACT") AND ARE
          "RESTRICTED SECURITIES" WITHIN THE MEANING OF RULE
          144  PROMULGATED  UNDER THE SECURITIES  ACT.   THE
          SECURITIES  HAVE BEEN ACQUIRED FOR INVESTMENT  AND
          MAY  NOT  BE SOLD OR TRANSFERRED WITHOUT COMPLYING
          WITH   RULE   144  IN  THE  ABSENCE  OF  EFFECTIVE
          REGISTRATION   OR  OTHER  COMPLIANCE   UNDER   THE
          SECURITIES ACT.

           (ii)  Prior to one year from the date the Options
have  been  exercised  and the Shares fully  paid  for,  the
Company may refuse to transfer the Shares unless the  holder
thereof  provides  an  opinion of legal  counsel  reasonably
satisfactory  to  the  Company or a "no  action"  letter  or
interpretive  response from the staff of the Securities  and
Exchange  Commission  to the effect  that  the  transfer  is
proper;  further,  unless such opinion  letter  or  response
states  that  the Shares are free of any restrictions  under
the  Securities Act, the Company may refuse to transfer  the
Shares to any transferee who does not furnish in writing  to
the  Company the same representations and agree to the  same
conditions  with  respect to such Shares as  are  set  forth
herein.   Notwithstanding any of the foregoing, the  Company
may  refuse to transfer the Shares if any circumstances  are
present   reasonably   indicating  that   the   transferee's
representations are not accurate.

           (iii)  After one year but prior to two years from
the  date  the  Options have been exercised and  the  Shares
fully  paid  for,  the Company may refuse  to  transfer  the
Shares  unless the holder either (a) meets the  requirements
of  subparagraph  (ii) above; or (b) sells  such  Shares  in
accordance  with  Rule  144  and furnishes  to  the  Company
written assurances of compliance therewith in the form of  a
copy  of  the Notice of Form 144 and appropriate letters  of
compliance from the holder of such Shares and the securities
broker-dealer  to  or through which such  Shares  are  being
sold.   No  opinion of counsel for the holder of the  Shares
shall  be required respecting sales in reliance on Rule  144
pursuant to clause (b) of this subparagraph (iii).

           (iv)   After two years from the date the  Options
have  been  exercised  and the Shares fully  paid  for,  the
Company  shall, upon the written request of any persons  who
have  held  the Shares for two years (excluding any  tolling
period provided for by Rule 144) and who is not, and has not
been during the preceding three months, an affiliate of  the
Company,   reissue  to  such  holder  in  such   names   and
denominations  as  the  holder shall request,  one  or  more
certificates   for  the  Shares  without   any   restriction
whatsoever on their further transfer and cancel any and  all
stop  transfer  instructions regarding such  Shares  on  the
books and records of the Company.

      (j)   The Employee understands that a portion  of  the
Options  granted hereunder are not incentive stock  options,
as  defined in Section 422 of the Internal Revenue  Code  of
1986,  as  amended, or that some of the Options  may,  under
certain  conditions be disqualified from treatment  as  such
Incentive  Stock  Options. The Employee further  understands
that  Grantee's  exercise  of  the  Options  which  are  not
entitled to treatment as Incentive Stock Options may  result
in  his  recognition  of  ordinary  income  for  income  tax
purposes in the year of such exercise in the amount  of  the
difference  between the exercise price and the  fair  market
value of the shares as of the date of exercise.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]