Document:

EXHIBIT 10.28

 Exhibit 10.28 
 PURCHASE AGREEMENT 
 THIS PURCHASE AGREEMENT (this “Agreement”) is made as of the
16th day of July, 2007 by and between VANTAMPA PLAZA HOTEL, INC., a Florida corporation (“Seller”), and MHI HOSPITALITY CORPORATION, a Delaware Corporation, or its permitted assigns (“Buyer”). 
 W I T N E S S E T H: 
 WHEREAS,
Buyer desires to purchase and Seller desires to sell the property described herein; 
 NOW, THEREFORE, in consideration of Ten Dollars
($10.00) paid by Buyer to Seller, and the mutual covenants of Seller and Buyer contained herein, Seller and Buyer hereby agree as follows: 
 1. Agreement to Purchase and Sell. Seller hereby agrees to sell and convey to Buyer, and Buyer hereby agrees to purchase from Seller: 
 A. Certain real property consisting of approximately +/- 3.82 acres of land located at 5303 West Kennedy Boulevard, Tampa, Florida, and the improvements located thereon (“the Property”) consisting of a 250
room hotel that is presently closed; 
 B. All of the personal property and equipment owned by Seller and located in or at the Hotel and used
in connection therewith, including but not limited to, cleaning equipment, furniture, fixtures, carpets, rugs, draperies, mechanical and electrical equipment, and office equipment, (collectively, the “Personal Property”). 
 C. To the extent owned by Seller and relating to or located on or in the Hotel and transferable by Seller, the telephone number for the Hotel, zoning
approvals and entitlements, surveys, plans and specifications, licenses and permits, contractor and maintenance files, service manuals, notices of compliance with state and federal and all governmental 

 
agencies and regulations, estoppel certificates or affidavits, and guaranties and warranties as to Personal Property which pertain to the Hotel or are used
in connection therewith (collectively, the “Permits and Licenses”); 
 D. There are no leases for equipment, services contracts, or
other agreements associated with the ownership of the Hotel, except as listed on Schedule I attached hereto. Notwithstanding any agreement to purchase and sell found in Paragraph 1 herein, or in any other Paragraph of this Agreement, Buyer reserves
the right not to assume any equipment leases associated with the Hotel; and 
 E. The Property, Hotel, Personal Property, and Permits and
Licenses, are conveyed “as is” “where is” in their present condition and Seller conveys same with no warranty or implied suitability of use. 
 2. Purchase Price. The Purchase Price for the Assets is Thirteen Million Five Hundred Thousand and 00/l00th Dollars ($13,500,000.00) (the “Purchase Price”). The term “Assets” as used herein
shall mean and include the Property, the Hotel, the Personal Property, the Permits and Licenses, and such other assets used in connection with the ownership of the Hotel. 
 A. Within five (5) days following the execution of this Agreement by both Seller and Buyer, a deposit of Two Hundred Fifty Thousand Dollars ($250,000.00) (the “Initial Deposit”) will be paid by Buyer to
Chicago Title Insurance Company (the “Escrow Agent”) as a good faith deposit, which deposit shall be applied to the Purchase Price at Closing. 
 B. Within five (5) days following the end of the Due Diligence Period (as defined hereinunder) and in the event Seller elects to proceed to Closing, a second deposit of Five Hundred Thousand Dollars ($500,000.00)
(the “Secondary Deposit”) will be paid by Buyer to the Escrow Agent as an additional good faith deposit, which deposit shall be applied to the Purchase Price at Closing; 
  

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 C. In the event Buyer elects to extend Closing pursuant to its option as described below, five
(5) days prior to the original Closing Date Buyer will tender a third deposit of Two Hundred Fifty Thousand Dollars ($250,000.00)(the “Extension Deposit”) to the Escrow Agent as a good faith deposit, which deposit shall be applied to
the Purchase Price; and 
 D. The difference in the Purchase Price and the Initial Deposit, the Secondary Deposit, and the Extension Deposit
(if applicable) shall be paid by Buyer to Seller at Closing by wire transfer of funds immediately available to Seller. 
 3. Escrow of
Deposit. The Initial Deposit, the Secondary Deposit and the Extension Deposit (if applicable) shall be held in escrow by the Escrow Agent as a good faith deposit. Buyer and Seller will execute the escrow agent’s standard escrow agreement
document. 
 4. Conditions. 
 A. Buyer shall have a period (“Inspection Period”) beginning on the date this Agreement is executed by all parties and expiring forty five (45) calendar days thereafter. During the Inspection Period, Buyer may notify Seller
that Buyer does not wish to close on the purchase of the Assets, in which event this Agreement shall terminate, the Initial Deposit shall be refunded to Buyer, and neither party shall have any further obligation to the other with respect to this
Agreement. If Buyer elects to proceed forward to Closing, Buyer’s Initial Deposit will become non-refundable as of 5:00 p.m. on the forty fifth calendar day subsequent to the execution of this Agreement by both Seller and Buyer. In the event
Buyer elects to proceed to Closing, Buyer will deliver the Secondary Deposit to the Escrow Agent within 

  

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five (5) days as setforth above in Section 2(B) and upon deposit by the Escrow Agent the Secondary Deposit shall be non-refundable. Closing will
occur not later than thirty (30) calendar days subsequent to the expiration of the Inspection Period. The Closing shall be held at the offices of Buyer’s counsel. If, prior to 5:00 p.m. on the seventy fifth calendar day subsequent to the
execution of this Agreement, Buyer notifies Seller in writing that Buyer needs an additional thirty (30) days to effect Closing, Seller shall grant Buyer said additional thirty (30) days and Closing will be extended upon Buyer’s
submitting the Extension Deposit as described above in Section 2(C) to the Escrow Agent. In the event Buyer elects to terminate this Agreement anytime after the expiration of the Inspection Period, the Initial Deposit, the Secondary Deposit (if
applicable), and Extension Deposit (if applicable) the funds held by the Escrow Agent shall be paid to the Seller as liquidated damages, and neither party shall have any further obligation to the other with respect to this Agreement; provided,
however, that if Seller is unable to deliver good title to the Assets, Escrow Agent shall refund the entire Deposit to Buyer if this Agreement is terminated by Buyer. 
 B. Seller agrees: 
 (i) At any reasonable time and from time to time during the Inspection Period, Buyer
shall have the right to fully inspect the Assets and to satisfy itself that the Assets, as of the date of such inspection, that no material defects in the structure of the buildings of the Hotel; the zoning is compliant with the intended use as a
hotel; the utilities are available at the site for the intended use; no undisclosed environmental hazards exist on the Property or in the Hotel. Seller shall use its best efforts to assure that Buyer has access to the Assets during normal business
hours, and Seller shall provide all available information concerning the Assets 

  

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that Buyer may reasonably request to assist Buyer in making such determinations if same are in Seller’ possession or control. Buyer may only contact
Seller or Seller’s designated representative when seeking access to the Hotel. 
 (ii) Seller shall furnish to Buyer within ten
(10) days of this Agreement being signed by both parties a copy of any title insurance examinations or policies, all environmental studies and reports, and all surveys, architectural plans and drawings, engineering reports, elevator reports,
the leases referenced on Schedule 1 hereto, and any and all other reports relating to the roof, structure, mechanical, electrical, plumbing, heating or air-conditioning systems, and environmental reports. 
 5. Closing. Closing shall take place in accordance with Paragraph 4.A., above. 
 6. Title and Conveyances. 
 A. At
Closing, Seller shall convey good and marketable fee simple title to the Property to Buyer by general warranty deed, clear insurable as such by Chicago Title Insurance Company (“Chicago Title”) at regular rates, on a Florida ALTA Form B
Owner’s Policy, free and clear of any and all liens, defects, encumbrances, leases, easements, covenants, restrictions, or other matters whatsoever, whether recorded or unrecorded, except for: (i) the lien of real estate taxes or
assessments not yet due and payable; and (ii) the easement for a road sign facing the interstate together with a right on ingress and egress for maintenance; (iii)Title Objections approved by Buyer pursuant to Section 6.B hereof.

 B. Within fifteen (15) days after the date hereof, Buyer shall obtain a title insurance commitment issued by Chicago Title (the
“Title Commitment”) at Buyer’s sole cost and expense. If Buyer determines that any matter or matters shown on the survey (if any) or the Title Commitment are 

  

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unacceptable, Buyer shall have until the fifteenth (15th) calendar day after receipt of the Title Commitment, along with legible copies of all documents or plats appearing as exceptions in the Title Commitment, and the survey to give Notice to Seller
of such objections which Buyer may have to the Title Commitment and/or Survey (the “Title Objections”). If Buyer fails to give any Notice of Title Objections to Seller by such date, Buyer shall be deemed to have waived this right to object
to any title exceptions or defects in the Title Commitment or the Survey; provided however, that Buyer shall have the continuing right to have the Title Commitment updated from time to time and to give Seller written notice of any additional Title
Objections arising after the effective date of the Title Commitment. Within fifteen (15) days after receipt of the Title Objections, Seller shall notify Buyer either that: (i) Seller shall correct such Title Objections; or (ii) Seller
shall not correct such Title Objections. In the event that Seller elects to correct such Title Objections, Seller shall correct such Title Objections at or prior to the Closing. In the event that Seller elects not to correct such Title Objections,
Buyer shall have the right, in its sole discretion, to either: (i) accept title “as is”; or (ii) terminate this Agreement, in which event the Deposit shall be promptly returned to Buyer and the parties hereto shall be released
from any further liabilities or obligations hereunder. In the event Buyer notifies Seller of any Title Objections, and Seller fails to notify Buyer within the period set forth above of its election to cure or not cure such Title Objections, Seller
shall be deemed to have elected to cure such Title Objections. Notwithstanding the provisions of this section and regardless of whether included in the Title Objections, Seller shall, at Seller’s sole expense, release at or prior to the Closing
all liens and encumbrances securing the payment of money. 
  

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 C. Seller shall convey the Personal Property to Buyer by a bill of sale that warrants that Seller owns
and is conveying to Buyer good and marketable title to the Personal Property, free and clear of all liens and encumbrances. 
 7.
Seller’s Representations and Warranties. Buyer has agreed to purchase the Assets as a result of Buyer’s review and inspection, and not because of or in reliance upon any representation made by the Seller or any principal or employee
of Seller, or by any agent of the Seller, except as expressly set forth in this Agreement, and that it has agreed to purchase the Assets in their present condition, unless otherwise specified herein. 
 Notwithstanding the foregoing, Seller represents that, to the best of Seller’s knowledge, Seller is not in possession of any information, and no
information has come to Seller’s attention that would cause Seller to conclude that: the Hotel, or any related facilities or utilities are not in conformance with applicable zoning, building codes or other laws and regulations; the Hotel is not
free from faulty materials and constructed according to sound engineering standards and constructed in a workmanlike manner; or there is any environmental contamination, hazardous waste, asbestos, or other toxic substances, in the Hotel or on the
Property upon which the Hotel is situated in any greater amount or degree than indicated in the environmental studies provided to Buyer, if any. Except to the extent available of the existing title policy and the environmental studies, if any, each
of which has been or will be provided to Buyer, in accordance with this Agreement, Seller has not undertaken any independent investigation or verification of the matters described in this Paragraph. The foregoing notwithstanding, the parties
acknowledge that the property is presently zoned for a hotel consisting of 160 rooms and a residential condominium consisting of 168 units. 
  

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 The Hotel and all furniture, fixtures, equipment and appliances located in or serving the Hotel and the
Personal Property, are being sold to Buyer “as is”. 
 A. Seller additionally represents and warrants to Buyer that to the best of
Seller’s knowledge: 
 (i) Seller is duly qualified under the laws of the State of Florida and has full and absolute power and authority
to enter into this Agreement and all ancillary documents delivered pursuant hereto and to perform all of its obligations hereunder. The individual or individuals executing this Agreement and all other instruments, documents and agreements to be
executed by Seller hereunder are duly authorized to execute documents on behalf of Seller. The execution and delivery of this Agreement and the performance by the Seller of its obligations hereunder have been duly authorized by all requisite action
or approval that is required in order to constitute this Agreement as a binding and enforceable obligation of the Seller, subject to the limitations and qualifications set forth herein, Seller has the full right to sell the Assets pursuant to this
Agreement, and no further authorization or consent to this Agreement is necessary for Seller to sell the Assets to Buyer except as set forth herein. 
 (ii) There are no judgments, orders, or decrees of any kind against Seller unpaid or unsatisfied of record, nor, any legal action, suit or other legal proceeding pending before any court, or any administrative
proceeding pending before any administrative agency relating to the Assets (including any notice of any proposed, pending or threatened condemnation proceeding) which would materially adversely affect the Assets and their intended use, nor has
Seller received any actual notice of any such threatened legal action, suit or other legal or administrative proceeding relating to the 

  

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Assets. The foregoing notwithstanding, Seller acknowledges a claim by LodgeNet, Inc. for sums of money pertaining to the early cancellation of the LodgeNet
Agreement relating to the operation of the existing Hotel on the premises. Further, Seller represents and warrants that if there are any claims or judgments, etc., that could adversely effect title to the premises Seller will, at its own cost and
expense, settle such claims, judgments, etc. to the satisfaction of Buyer or Buyer’s Title Agency on or before closing. 
 (iii) Seller
has received no notice of any proposed, pending or actual assessment made or to be made against the Assets by any governmental authority or instrumentality. 
 (iv) Seller covenants and represents that it has no personal knowledge of any handling, transportation, storage, treatment or usage of hazardous or toxic substances that has occurred in or on the Property during
Seller’s ownership thereof in any greater amount or degree than indicated in the environmental studies provided to Buyer, if any. Seller further represents that Seller has no knowledge of any leak, spill, discharge, emission or disposal of
hazardous or toxic substances which has occurred on the Property, and to the best of Seller’s knowledge that the soil, groundwater, soil vapor on or under the land is free of toxic or hazardous substances as of the date hereof other than that
indicated in the environmental studies provided to Buyer, if any. 
 8. Fires or Casualty. Seller shall keep the Hotel insured against
loss by fire or casualty in any amount of not less than Six Million Dollars ($6,000,000.00). If, prior to Closing, the Hotel is damaged and the cost of restoring such damage exceeds Two Million Dollars ($2,000,000.00), or if the Hotel is destroyed
by casualty, then Buyer may, by written notice to Seller given within ten (10) days after such loss, terminate this Agreement and 

  

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receive a refund of all deposits. Upon such termination, neither party shall have any further liability to the other party hereunder. Any other loss or
damage to the Property shall not be in any way void or impair the obligations of the parties hereunder. If this Agreement is not terminated, insurance proceeds payable with respect to such damage shall be assigned to Buyer at Closing, the full
Purchase Price (less an amount equal to the deductible under Seller’s insurance policy) shall be paid, and the Property shall be delivered to Buyer at Closing subject to damage. 
 9. Adjustments. 
 A. Real estate
taxes, personal property taxes, utilities, water and sewer, rents, and other governmental assessments on the Property shall be prorated between Buyer and Seller on a calendar or fiscal year basis, using the fiscal year of the applicable taxing
authority or the billing period for any utility service as the basis for accrual thereof, as of the date of the settlement or Closing. Seller shall pay all expenses of deed preparation, transfer fees, the transfer tax on said deed, half of the
Escrow Agent’s fees and the cost, if any, for removal of title defects. Buyer agrees to pay in cash at closing the cost of recording all documents, including the deed, assignments, mortgage, financing statements, and other collateral documents,
as may be applicable, the cost of the title examination, the title insurance premiums, and half of the Escrow Agent’s fees. Each party shall pay its respective attorney’s fees. 
 B. Seller shall receive credit for an amount equal to such prepaid expenses, if any, that inure to the benefit of Buyer. 
 10. Notices. All notices hereunder shall be in writing and sent by depositing it with a nationally recognized overnight courier services that
obtains receipts, addressed to the appropriate party (and marked to a 

  

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particular individual’s attention if so indicated) as hereinafter provided. Each notice shall be effective upon being so deposited. Rejection or other
refusal by the addressee to accept or the inability to deliver because of a changed address of which no notice was given shall be deemed to be the receipt of the notice sent. Any party shall have the right from time to time to change the address or
individual’s attention to which notice to it or them shall be sent by giving the other party at least ten (10) days’ prior notice thereof. The notice address of the parties shall be as follows: 
  

			
	If to Seller:	 	VanTampa Plaza Hotel, Inc.
		 	L. Joe VanWhy
		 	27828 Lincoln Place
		 	Wesley Chapel, FL 33544
		
	With a copy to:	 	Salvatore Checho
		 	287 Park Avenue
		 	Bangor, PA 18013
		
	And a copy to:	 	Harry F. Lee, Esquire
		 	22 North Seventh Street
		 	Stroudsburg, PA 18360
		
	If to Buyer:	 	Mr. David R. Folsom
		 	MHI Hospitality Corporation
		 	814 Capitol Landing Road
		 	Williamsburg, VA 23185
		
	With a copy to:	 	Thomas J. Egan, Esquire
		 	Baker McKenzie
		 	815 Connecticut Avenue NW
		 	Washington, DC 20006
		
	With a copy to:	 	James J. Shimberg
		 	Holland & Knight LLP
		 	100 North Tampa Street
		 	Suite 4100
		 	Tampa, FL 33602

 Notwithstanding anything in this paragraph to the contrary, any notice received in fact shall be deemed given in
accordance with this paragraph. 
 11. Commission and Other Fees. There are no brokerage fees or commissions incurred as a result of
the consummation of this Agreement other 

  

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than those payable by Seller to Hodges Ward Elliott, which fee shall be paid by the Seller. In the event any claims arise for real estate brokerage
commissions, fees, or other compensation in connection with the transaction contemplated herein (other than the commission due Broker as referenced herein), the party causing such claims, or through whom such claims are made, shall indemnify and
hold the other party hereto harmless for any loss or damage which such other party suffers as a result thereof. The foregoing indemnification shall survive the Closing or earlier termination of this Agreement. 
 12. Default. 
 A. If Buyer does not
terminate this Agreement during the Inspection Period, or any extension thereof, and Buyer fails to complete Closing for the purchase of the Property within the time period specified in Paragraphs 4 and 5, hereof, and such failure has not been cured
by Buyer within fifteen (15) days following receipt of written notice specifying in detail the nature of such failure, Buyer shall be in default hereunder, and Seller shall retain all deposits held by the Escrow Agent as liquidated damages;
provided, however, if Buyer’s failure to close on the purchase described herein is caused by Seller’s inability to deliver good title to the Assets, if demanded by Buyer, the entire Deposit shall be refunded to Buyer, and neither party
shall have any further obligation to the other with respect to this Agreement. 
 B. If Seller fails to complete Closing in accordance with
this Agreement through no fault of Buyer, Buyer shall be entitled to specific performance of this Agreement in addition to all other remedies to which Buyer is entitled at law or in equity, and the entire Deposit shall be immediately refunded to
Buyer. 
  

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 13. Entire Agreement and Modifications. This Agreement embodies and constitutes the final and
entire agreement between the parties hereto and they shall not be bound by any terms, covenants, conditions, representations, or warranties not expressly contained herein. This Agreement may not be altered, changed, or amended by an instrument in
writing, executed by both parties hereto. 
 14. Applicable Law. This Agreement shall be governed, construed, and enforced according
to the laws of the State of Florida. 
 15. Headings. Descriptive headings are for convenience only and shall not control or affect
the meanings or construction of any provision of this Agreement. 
 16. Interpretation. Whenever the context hereof shall so require,
the singular shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. 
 17.
Severability. If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 
 18. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. The rights of Buyer under this Agreement may be assigned without the prior written
consent of Seller. 
 19. General Provisions. All representations, warranties and covenants herein shall not be merged in the deed of
conveyance but shall survive the closing for a period of one year. It is agreed that time is of the 

  

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essence in the performance of the terms of this Agreement. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be
an original and all of which counterparts taken together shall constitute one agreement. To facilitate execution and delivery of this Agreement, the parties hereto (and other signatories hereto) may exchange counterparts of the executed signature
pages hereof by facsimile transmission. The signature of any party to any counterpart may be appended to any other counterpart 
 20.
LodgeNet Agreement. Buyer agrees to make commercially reasonable efforts to enter into an agreement with LodgeNet, Inc. to provide Buyer with pay perview movies and other services contemplated to be offered by Buyer in its operation of the
Hotel. Failure of Buyer to enter into such agreement shall not constitute a default hereunder. 
 21. Radon. Radon is a naturally
occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in
buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives on
the date set forth below. 
  

											
	 	 	 	 	 	 	SELLER:	 	 
		 		 		 	VanTampa Plaza Hotel, Inc.	 	
						
	 July 12, 2007
	 		 		 	By	 	 /s/ L. Joe Van Why
	 	
	Date	 		 		 		 	L. Joe Van Why, Executive Vice-President	 	
					
		 		 		 	BUYER:	 	
		 		 		 	MHI Hospitality Corporation	 	
						
	 July 16, 2007
	 		 		 	By	 	 /s/ David R. Folsom
	 	
	Date	 		 		 	Name:	 	David R. Folsom, COO	 	

  

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 SCHEDULE I 
 LIST OF HOTEL CONTRACTS PROVIDED TO BUYER 
 1. Agreement with Mobility Technologies, Inc. for a roof top antenna
lease 
 2. Agreement with Voicestream Tampa/Orlando, Inc. – TMobile South, L.L.C. for a roof top antenna Lease. 
  

 16Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as
of July 16, 2007 is entered into between Micronetics, Inc., a Delaware corporation ( the “Company”), and David Robbins (the “Executive”). 
 W I T N E S S E T H : 
 WHEREAS, the Company desires to enter into this Agreement, pursuant to
which the Company will continue to employ the Executive and be assured of his services on the terms and conditions hereinafter set forth; and 
 WHEREAS, the Executive is willing to accept such continued employment on such terms and conditions; 
 NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth in this Agreement, the Company and the Executive hereby agree as follows: 
 1.
Employment, Duties and Acceptance. 
 a. Employment, Duties. The Company hereby employs the Executive for the Employment Period
(as defined in Section 2 below), effective on the date hereof, as the President and Chief Executive Officer of the Company, subject to the supervision and direction of the Board of Directors of the Company (the “Board”). The Executive
shall have such duties, responsibilities and authority as are customarily required of and given to a Chief Executive Officer and such other duties and responsibilities commensurate with such position as the Board shall reasonably determine from time
to time. Such duties, responsibilities and authority shall include, without limitation, full executive responsibility for the management, operation, strategic direction, financial structure and overall conduct of the business of the Company and its
subsidiaries and affiliates. The Executive shall report directly to the Board. Additionally, the Company shall use its reasonable best efforts at all times during the Employment Period to cause the Executive to be nominated to serve, and to be
elected, as a Director of the Company. 
 b. Acceptance. The Executive hereby accepts such employment and agrees to render the
services described above. During the Employment Period, the Executive agrees to serve the Company faithfully and to the best of the Executive’s ability, to devote all of the Executive’s business time, energy and skill to such employment,
and to use the Executive’s best efforts, skill and ability to promote the Company’s interests. Notwithstanding the foregoing, however, nothing in this Agreement shall be construed as preventing the Executive from (i) serving as a
Director of other corporations not competing with the Company in a manner that does not adversely affect his duties under this Agreement or (ii) engaging in religious, charitable or other community or nonprofit activities that do not impair his
ability to fulfill his duties under this Agreement. The Executive further agrees to accept election, and to serve during all or any part of the Employment Period, as a Director and officer of the Company and of any subsidiary or affiliate of the
Company, without any compensation therefor other than that specified in this Agreement, if elected or appointed to any such position by the Stockholders or Board of Directors of the Company, or of any subsidiary or affiliate, as the case may be.

  

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 c. Location. The Executive shall perform his duties primarily at the offices of the Company in the
Hudson, New Hampshire area, as the Board may determine, subject to reasonable travel requirements outside of this area on behalf of the Company. 
 2.
Employment Period. 
 The term of this Agreement shall commence effective as of, and retroactive to, July 1, 2007 (the
“Commencement Date”) and shall terminate upon the termination of the Executive’s employment pursuant to the provisions of Section 4 hereof. The period between the Commencement Date and the date of termination of the
Executive’s employment hereunder is hereinafter referred to as the “Employment Period”. 
 3. Compensation; Benefits.

 a. Base Salary. The Company shall pay to the Executive for all services to be performed hereunder and performance of all of his
obligations hereunder, including the Executive’s compliance with the covenants contained herein, an annual base salary (the “Base Salary”) of $200,000, payable in accordance with the Company’s normal salary payment schedule, as
the same may be amended from time to time. Except as specifically provided herein, the Base Salary shall be the Executive’s total base compensation and is inclusive of compensation received or receivable by the Executive in respect of any other
office or employment in, or service to, the Company. The Base Salary may be increased but not decreased at any time by the Board in its sole discretion. 
 b. Bonus.  
  

	 	(i)	In addition to the Base Salary described in Section 3(a) above, the Company shall pay to the Executive, in cash, a Bonus (the “Bonus”) in respect of each Bonus
Determination Period (as hereinafter defined) during the Employment Period (subject, in the event of the termination of his employment, to the provisions of Section 4(e) hereof) in an amount equal to the sum of: 

  

	 	(A)	Three percent (3%) of the Income Before Taxes of the Company (as hereinafter defined) for each Bonus Determination Period; plus 

  

	 	(B)	Five Percent (5%) of the excess (if any) of the Income Before Taxes of the Company for each Bonus Determination Period over the Income Before Taxes of the Company for the same
period in the immediately preceding fiscal year. 

  

	 	(ii)	 For purposes of this Agreement, the term “Bonus Determination Period” shall mean (A) each full fiscal year of the Company during the Employment
Period, commencing with the fiscal year beginning on April 1, 2007 and ending on March 31, 2008 (an “Annual Bonus Period”), (B) any period of less than a full fiscal year during the Employment Period, which period shall
commence on the first day of the then current fiscal year and end on the last day of the calendar month immediately preceding the calendar month in which the date of termination of the Executive’s employment shall fall (the “Stub
Period”), in respect to which period the Executive shall be entitled to receive a Bonus pursuant to the provisions of Sections 4(e)(v)(C) and 4(e)(vi)(C) of this Agreement following the termination of the Executive’s employment without

  

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cause or for “Good Reason” (as hereinafter defined) and (C) the period of six months ending on the last day of the calendar month immediately
preceding the calendar month in which the date of termination of the Executive’s employment shall fall (the “Additional Stub Period”) in respect to which the Executive shall be entitled to receive an additional Bonus pursuant to the
provisions of Sections 4(e)(v)(D) and 4(e)(vi)(D) of this Agreement following the termination of the Executive’s employment without cause or for “Good Reason” (as hereinafter defined). 

  

	 	(iii)	For purposes of this Agreement, the term “Income Before Taxes of the Company” for each full fiscal year of the Company during the Employment Period shall be the
“income before provision for income taxes” of the Company as reflected on the Micronetics and Subsidiaries Consolidated Statements of Income contained in the Company’s Annual Report on Form 10KSB or Form 10K, as the case may be,
determined in accordance with accounting principles generally accepted in the United States applied on a basis consistent with the manner in which such principles have theretofore been applied, adjusted to eliminate the effect of (A) gains and
losses on acquisitions and dispositions of assets outside the ordinary course of business; (B) extraordinary items of income, gain, loss or expense (as so characterized by generally accepted accounting principles applied on a consistent basis);
and (C) the accrual of any Bonus under this Agreement in respect of the Bonus Determination Period in question. For any Bonus Determination Period of less than a full fiscal year, the “Income Before Taxes of the Company” for such
period shall be the “income before provision for income taxes” of the Company for such Bonus Determination Period, as so adjusted, determined upon the same basis and in the same manner as the determination of such amount for each full
fiscal year of the Company. The calculation of the Income Before Taxes of the Company shall include, among other charges and expenses, appropriate deductions for stock compensation and interest expense. 

  

	 	(iv)	The determination of the Bonus for any Bonus Determination Period shall be made by the Chief Financial Officer of the Company (the “CFO”) and approved by the Compensation
Committee of the Board (the “Compensation Committee”) as soon as may be practicable after the end of the applicable Bonus Determination Period but no later than ninety (90) days after the end of the Bonus Determination Period set
forth in Section 3(b)(ii)(A) above, and no later than 45 days after the end of each of the Bonus Determination Periods set forth in Sections 3(b)(ii)(B) and 3(b)(ii)(C) above. Upon the approval of the applicable Bonus by the Compensation
Committee, the CFO shall deliver a copy of such determination to the Executive and, absent manifest error, such determination shall be final and binding on the parties. Subject to Sections 4(e)(vi) and 4(e)(viii), the Bonus shall be payable by the
Company in full within fifteen (15) days after a copy of the determination of the amount thereof has been delivered to the Executive. 

  

	 	(v)	 To the extent the same shall not have been paid as of the date hereof, the Executive shall continue to be entitled to receive a bonus in respect of the
Company’s fiscal year ended March 31, 2007, in accordance with the existing bonus program for the Executive previously agreed upon between the Company and the Executive for such fiscal year, which shall be calculated and paid in 

  

 -3- 

	 	 
accordance with the provisions of such previously agreed upon bonus program, and the Executive will not be entitled to a Bonus in respect of such fiscal year
pursuant to this Agreement. 

 c. Vacation. The Executive shall be entitled to four (4) weeks paid vacation
during each fiscal year of the Company to be taken at such time or times as the Executive may reasonably determine, consistent with the needs of the Company. Any vacation time not taken during any fiscal year of the Company shall be forfeited and
shall not be carried forward into the following fiscal year. 
 d. Fringe Benefits. During the Employment Period, the Executive shall
be entitled to all benefits for which the Executive shall be eligible under any qualified pension plan, 401(k) plan, sick leave, group medical insurance or other so-called “fringe” benefit plans which the Company provides to its employees
generally, together with executive benefits for the Executive, as from time to time in effect for officers of the Company generally, subject in all respects to the terms, conditions and qualifications of such plans. 
 e. Options. All stock options previously granted to the Executive shall remain in full force and effect in accordance with their terms and this
Agreement is not intended to modify any of such options in any respect. The Executive shall continue to be eligible to be awarded additional stock options, restricted stock and other equity and cash incentive awards under Company plans and other
arrangements or agreements as shall be approved from time to time by the Board. 
 f. Reimbursement of Business Expenses. During the
Employment Period, upon submission of proper invoices, receipts or other supporting documentation satisfactory to the Company, the Executive shall be reimbursed by the Company for all reasonable business expenses actually and necessarily incurred by
the Executive on behalf of the Company in connection with the performance of services under this Agreement. 
 g. Car Allowance.
During the Employment Period, the Company shall pay to the Executive a car allowance in the amount of $500.00 per month. 
 h. Legal
Fees. The Company shall pay all reasonable attorneys’ fees incurred by the Executive in connection with the negotiation, preparation and execution of this Agreement. 
 4. Employment Termination. The Executive’s employment shall terminate upon the following terms and conditions: 
 a. Death or Permanent Disability. If the Executive dies or becomes permanently disabled, the Executive’s employment shall terminate effective at the end of the calendar month during which his death occurs
or when his disability is deemed to have become permanent. If the Executive is unable to substantially perform all of his normal duties for the Company in the usual and customary fashion because of illness or incapacity (whether physical or mental)
for 90 or more days (whether or not consecutive) out of any 365 consecutive days, his disability shall be deemed to have become permanent. 
 b. Cause. If a majority of the members of the Board then in office votes to terminate the Executive’s employment for Cause, the Executive’s employment shall terminate and the Executive shall be removed from office effective
on the date specified in the resolutions adopted by the Board to effect the termination of the Executive’s employment for Cause. For purposes of this Agreement, termination of the Executive’s employment shall be deemed for Cause only if
such termination is the direct result of: 
  

	 	(i)	the Executive’s misappropriation of the Company’s funds or property, or fraud on the part of the Executive; 

  

 -4- 

	 	(ii)	the Executive’s conviction of, or plea of guilty or no contest to, any felony under the laws of the United States or any State or political subdivision thereof;

  

	 	(iii)	a material breach of this Agreement by the Executive, provided that the Executive has first been given written notice describing such breach in reasonable detail, and within
thirty (30) days he has not remedied the same; 

  

	 	(iv)	The Executive uses illegal drugs or chronically abuses legal drugs or alcohol or conducts business under the undue influence of drugs or alcohol or his abuse of drugs or alcohol
adversely affects his ability to perform his duties, which the Executive shall not have cured after reasonable notice and a reasonable opportunity to cure; 

  

	 	(v)	The Executive’s engaging in an act of sexual harassment or discrimination prohibited by the laws of the United States or a state in which the Company’s offices are located
or in which the Company conducts business, or any other conduct taken or omitted in bad faith which is significantly detrimental to the Company; 

  

	 	(vi)	any determination by the Securities and Exchange Commission, or any other regulatory agency or court, that the Executive has committed a violation of federal or state securities
laws or regulations thereunder, or of the Sarbanes Oxley Act or regulations thereunder. 

  

	 	(vii)	any other action or omission constituting gross negligence or willful misconduct by the Executive, in the performance of his duties hereunder. 

 c. Good Reason Employment Termination. The Executive may terminate his employment for Good Reason at any time during the Employment Period by
written notice to the Company given not more than fifteen (15) days after the occurrence of the event constituting Good Reason. Such notice shall state an effective date no earlier than fifteen (15) days after the date it is given. Except
for the termination by the Executive of his employment pursuant to the provisions of Section 4(c)(vi) below (as to which the Company shall not have the right to cure or dispute the Executive’s reasons therefor), the Company shall have
thirty (30) days from the receipt of such notice within which to cure or dispute in good faith the reasons set forth in such notice. If not timely cured or disputed in good faith, termination by the Executive of his employment for Good Reason
shall be treated as termination by the Company without Cause. 
 For purposes of this Agreement, “Good Reason” shall mean and include any of the
following: 
  

	 	(i)	the assignment to the Executive of any duties inconsistent with the Executive’s position (including status), authority or material responsibilities; or the removal, or a
reduction in the nature or scope, of the Executive’s authority, duties, powers or material responsibilities; 

  

	 	(ii)	a reduction in the Executive’s offices or titles, a failure to elect the Executive to any positions, including as a member of the Board, held by the Executive on the date
hereof; or the interposition of any committee, group or person in the Company’s reporting structure such that the Executive ceases to report directly and solely to the Board; 

  

 -5- 

	 	(iii)	a reduction in the Executive’s Base Salary or a reduction or elimination of any other material element of the Executive’s compensation as in effect on the date hereof (it
being agreed that a reduction in the amount of the Executive’s bonus as a result of any reduction in the Company’s Income Before Taxes below that of any prior corresponding Bonus Determination Period shall not constitute such a reduction
of any other material element of the Executive’s compensation); 

  

	 	(iv)	a reduction in the Executive’s “fringe” benefits of the type described in Section 3(d) as in effect on the date hereof, except for such a reduction as shall be
generally applicable to substantially all of the Company’s senior executives; 

  

	 	(v)	the failure by the Company to make any payment required to be paid to the Executive hereunder or to comply with any of the other material provisions of this Agreement; and

  

	 	(vi)	the occurrence of a Change in Control of the Company within the prior one hundred eighty (180) days. 

 For purposes of this Agreement, a “Change of Control” shall mean and include any of the following: 
  

	 	(i)	a merger or consolidation of the Company with or into any other corporation or other business entity (except one in which the holders of capital stock of the Company immediately
prior to such merger or consolidation continue to hold at least a majority of the outstanding securities having the right to vote in an election of the Board (“Voting Stock”) of the surviving corporation); 

  

	 	(ii)	a sale, lease, exchange or other transfer (in one transaction or a related series of transactions) of all or substantially all of the Company’s assets;

  

	 	(iii)	the acquisition by any person or any group of persons (other than the Company, any of its direct or indirect subsidiaries, or any trustee, fiduciary or other person or entity
holding securities under any employee benefit plan or trust of the Company or any of its direct or indirect subsidiaries) acting together in any transaction or related series of transactions, of such number of shares of the Company’s Voting
Stock as causes such person, or group of persons, to own beneficially, directly or indirectly, as of the time immediately after such transaction or series of transactions, 50% or more of the combined voting power of the Voting Stock of the Company
other than as a result of an acquisition of securities directly from the Company, or solely as a result of an acquisition of securities by the Company which by reducing the number of shares of the Voting Stock outstanding increases the proportionate
voting power represented by the Voting Stock owned by any such person or group of persons to 50% or more of the combined voting power of such Voting Stock; 

  

	 	(iv)	a change in the composition of the Board following a tender offer or proxy contest, as a result of which persons who, immediately prior to such tender offer or proxy contest,
constituted the Board shall cease to constitute at least a majority of the members of the Board; and 

  

 -6- 

	 	(v)	any liquidation, dissolution or winding up of the Company (whether voluntary or involuntary). 

 d. Employment Termination Without Cause or Good Reason. The Company may terminate the Executive’s employment under this Agreement without
Cause at any time during the Employment Period by ten (10) days’ advance written notice to the Executive. The Executive may terminate the Executive’s employment under this Agreement without Good Reason at any time during the
Employment Period by sixty (60) days’ advance written notice to the Board. 
 e. Employment Termination Payments, Etc. In
the event that the Executive’s employment terminates under the circumstances described herein, the Executive shall be entitled to receive, subject to applicable withholding taxes, the following amounts: 
  

	 	(i)	Upon a termination of employment due to the Executive’s death pursuant to Section 4(a) hereof, the Executive’s estate shall be entitled to such benefits as are
provided pursuant to Section 3(d) hereof for a period of six months from the date of death. 

  

	 	(ii)	Upon a termination of employment due to the Executive’s permanent disability pursuant to Section 4(a) hereof, (A) the Company shall pay to the Executive a lump sum
equal to the Executive’s Base Salary (including Base Salary increases provided for in this Agreement) for a period of six months (less any amounts of disability income which shall be paid or which shall be payable to the Executive within such
six months period pursuant to any disability insurance policy maintained by the Company) not earlier than the first to occur of (a) the expiration of six months and one day following the date of termination, or (b) the death of the
Executive following the date of termination, nor later than fifteen days following the first to occur of either of such events. Any such payments provided to be paid to the Executive in this Section 4(e)(ii)(A) shall bear interest at an annual
rate equal to the prime rate as set forth in the Eastern edition of the Wall Street Journal on the date of termination, from the date of termination to the date of payment; and (B) the Company shall continue to provide to the Executive such
other benefits as are provided pursuant to Sections 3(d) hereof for a period of six months from the date of termination. 

  

	 	(iii)	In addition to the amounts set forth in (i) and (ii) above, if the Executive’s employment is terminated by reason of the Executive’s death or disability during
the Employment Period, the Executive or his estate shall be entitled to payment of the (A) any Base Salary through the date of termination payable in accordance with Section 3(a) hereof, (B) any earned Bonus for any completed Annual
Bonus Period that theretofore had not been paid, and (C) any other compensation (not including any Bonus in respect of any Stub Period or Additional Stub Period) earned through the date of termination but not yet paid or delivered to the
Executive (“Accrued Obligations”), which shall be paid or made to the Executive or his estate or beneficiary, as applicable. 

  

	 	(iv)	Upon a termination of employment by the Company for Cause pursuant to Section 4(b) hereof, the Executive shall receive only the Base Salary through the date of such
termination, payable in accordance with Section 3(a) hereof, and no more. The Executive shall not be entitled to be paid any Bonus with respect to any Bonus Determination Period as to which the Executive shall not have been paid a Bonus prior
to the date of such termination. 

  

 -7- 

	 	(v)	Upon a termination of employment during the Employment Period by the Company without Cause, the Employment Period shall terminate on the date of such termination and the
Company’s remaining obligations to the Executive shall be as follows: (A) payment to the Executive of all Accrued Obligations, (B) payment to the Executive of a lump sum equal to the Executive’s Base Salary (including Base Salary
increases provided for in this Agreement) for a period of six months; (C) payment to the Executive of a Bonus for the Stub Period; and (D) payment to the Executive of a Bonus for the Additional Stub Period. Subject to the provisions of
Section 4(e)(viii) hereof, payment of the amounts provided to be paid to the Executive in clauses (A) and (B) of this Section 4(e)(v) shall be made within thirty (30) days of the date of termination, and payment of the
amounts provided to be paid to the Executive in clauses (C) and (D) of this Section 4(e)(v) shall be made within the periods set forth in Section 3(b)(iv) hereof. In addition, the Company shall maintain in effect for the
Executive (and the Executive’s spouse and/or dependent children), for a period of six months following the date of termination, the fringe benefits provided for in Section 3(d) hereof; provided, however, that the Company shall not
be required to continue the Executive’s group medical benefits for any period during which the Executive is receiving substantially similar benefits from any subsequent employer at no cost to the Executive. 

  

	 	(vi)	Upon a termination of employment during the Employment Period by the Executive for Good Reason, the Employment Period shall terminate on the date of such termination and the
Company’s remaining obligations to the Executive shall be as follows: (A) payment to the Executive of all Accrued Obligations, (B) payment to the Executive of a lump sum equal to the Executive’s Base Salary (including Base Salary
increases provided for in this Agreement) for a period of six months; (C) payment to the Executive of a Bonus for the Stub Period; and (D) payment to the Executive of a Bonus for the Additional Stub Period. Payment of the amount provided
to be paid to the Executive in clause (A) of this Section 4(e)(v) shall be made within thirty (30) days of the date of termination. Payment of the amounts provided to be paid to the Executive in clauses (B), (C) and (D) of
this Section 4(e)(vi) shall be made not earlier than the first to occur of (a) the expiration of six months and one day following the date of termination, or (b) the death of the Executive following the date of termination, nor later
than fifteen days following the first to occur of either of such events. Any such payments provided to be paid to the Executive in clauses (B), (C) and (D) of this Section 4(e)(vi) shall bear interest at an annual rate equal to the
prime rate as set forth in the Eastern edition of the Wall Street Journal on the date of termination, from the date of termination to the date of payment. In addition, the Company shall maintain in effect for the Executive (and the Executive’s
spouse and/or dependent children), for a period of six months following the date of termination, the fringe benefits provided for in Section 3(d) hereof; provided, however, that the Company shall not be required to continue the
Executive’s group medical benefits for any period during which the Executive is receiving substantially similar benefits from any subsequent employer at no cost to the Executive. 

  

 -8- 

	 	(vii)	Upon a voluntary termination of employment by the Executive for any reason other than Good Reason pursuant to Section 4(d) hereof, the Executive shall only receive the Base
Salary through the date of such termination, payable in accordance with Section 3(a) hereof, and no more. The Executive shall not be entitled to be paid any Bonus with respect to any Bonus Determination Period as to which the Executive shall
not have been paid a Bonus prior to the date of such termination. 

  

	 	(viii)	Notwithstanding the foregoing provisions of this Section 4(e), if any amount provided to be paid to the Executive pursuant to the foregoing provisions of this Section 4(e)
will be “nonqualified deferred compensation” subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended, the payment of such amount shall be made not earlier than the first to occur of (a) the
expiration of six months and one day following the date of termination, or (b) the death of the Executive following the date of termination, nor later than fifteen days following the first to occur of either of such events. Any such payments
which shall be deferred pursuant to the provisions of the preceding sentence shall bear interest at an annual rate equal to the prime rate as set forth in the Eastern edition of the Wall Street Journal on the date of termination, from the date of
termination to the date of payment. 

 f. No Mitigation; Offset. In the event of any termination of employment by the
Company without Cause or by the Executive for Good Reason, the Executive shall be under no obligation to seek other employment. 
 5. Protection of
Confidential Information; Non-Competition. 
 a. Confidentiality. In view of the fact that the Executive’s work for the
Company will bring the Executive into close contact with confidential affairs, information and plans for future developments of the Company not readily available to the public, as well as access to certain trade secrets pertaining to the business of
the Company, all of which the Executive acknowledges are proprietary to and the exclusive property of the Company, the Executive agrees: 
  

	 	(i)	To keep and retain in the strictest confidence all confidential matters of the Company, including, without limitation, “know how”, trade secrets, unpatented inventions,
technology, software, clinical trials, test results, policies, operational methods, technical processes, formulae, inventions, research projects, evaluations, reports, business plans, marketing plans, financial information, customer lists, and
supplier lists, the lists and identities of employees of and consultants to the Company and other business affairs of the Company, learned by the Executive including, but not limited to, any confidential information concerning any of the financial
arrangements, financial positions, competitive status, customer or suppliers matters, internal organizational matters, technical capabilities, or other business affairs of or relating to the Company (collectively, “Confidential
Information”) known to or learned by the Executive hereafter and, except to the minimum extent required by law or legal process, and not to disclose or use such Confidential Information to or for the benefit of anyone other than the executives,
consultants and representatives of the Company on a “need to know” basis, either during or after termination of the Executive’s employment with the Company, for any reason, except in the course of performing the Executive’s
duties hereunder or with the Company’s express written consent; and 

  

 -9- 

	 	(ii)	To deliver promptly to the Company on termination of the Executive’s employment, or at any time the Company may so request, all memoranda, notes, records, reports, manuals,
drawings, blueprints and other documents, and all copies thereof, including computer programs, discs, software, firmware, etc., relating to the Company’s business, operations and financial condition, and all property associated therewith, which
the Executive may then possess or have under the Executive’s control. 

 b. Covenants Not to Compete. 

 

	 	(i)	The Executive covenants to and with the Company that during employment by the Company and for the period of time following the termination of employment specified below, for any
reason, the Executive will not, directly or indirectly, either as a principal, agent, employee, employer, stockholder, or co-partner, or in any other individual or representative capacity: 

  

	 	(A)	for one year following termination of employment engage in or carry on any business which is in direct competition with the business of the Company or any of its subsidiaries or
affiliates (“Business”) in the Territory (as hereinafter defined). Nothing contained in this Section 5, whether express or implied, shall prevent the Executive from being a holder of two percent (2%) or less for the purposes of
passive investment only of marketable securities then being quoted on a recognized national stock exchange or traded on the National Market System of the NASDAQ. Notwithstanding anything to the contrary contained in this Section 5, nothing
contained in this Section 5 is intended, nor shall be deemed, to restrict the Executive from using his free time to continue or otherwise engage in charitable and other not for profit professional activities. “Territory” shall mean
the United States of America or any place else worldwide in which any aspect of the Business is then conducted, or in which the Company’s products are distributed, marketed or sold; 

  

	 	(B)	for one year following termination of employment, solicit any past, present or future customers of the Company or any of its subsidiaries or affiliates (“Customers”) for
business in any way relating to any aspect of the Business; 

  

	 	(C)	for one year following termination of employment, request, directly or indirectly, that any Customers or other persons sharing a business relationship with the Company or any of its
affiliates, curtail or cancel their business with the Company or any of its affiliates, or otherwise take action which might be to the disadvantage of the Company or any of its subsidiaries or affiliates; or 

  

	 	(D)	for one year following termination of employment, induce or actively attempt to influence any other employee or consultant of the Company or any of its affiliates to terminate such
other employee’s or consultant’s employment or consultancy with the Company or any of its subsidiaries or affiliates, or employ, retain, or offer employment or a consultancy to any such other employee or consultant.

  

 -10- 

	 	(ii)	If the Executive violates any of the restrictions contained in Section 5(b) hereof, the restrictive period provided for in such Section shall be increased by the period of time
from the commencement of any such violation until the time such violation shall be cured by the Executive to the satisfaction of the Company. 

  

	 	(iii)	The Executive acknowledges that the foregoing restrictions are reasonable under the circumstances of his employment and the Business and will not prevent him from earning a living.

  

	 	(iv)	Notwithstanding any provision of this Agreement to the contrary, all of the restrictions contained in this Section 5(b) shall terminate without notice in the event that the
Company liquidates in connection with a bankruptcy or other insolvency proceeding or ceases to operate as an ongoing business entity. 

 c. Remedies. If the Executive commits a breach, or threatens to commit a breach, of any of the provisions of Sections 5(a) or 5(b) hereof, the Company shall have the following rights and remedies: 
  

	 	(i)	The Executive understands and agrees that the Company shall suffer irreparable harm in the event that the Executive breaches any of the Executive’s obligations under Sections
5(a) and 5(b) of this Agreement and that monetary damages shall be inadequate to compensate the Company for such breach. Accordingly, the Executive agrees that, in the event of a breach or threatened breach by the Executive of any of the provisions
of this Agreement, the Company shall be entitled to a temporary restraining order, preliminary injunction and permanent injunction in order to prevent or restrain any such breach by the Executive. 

  

	 	(ii)	The Company shall be entitled to seek all other monetary damages to which it is entitled under the law in connection with any transactions constituting a breach of any of the
provisions of Sections 5(a) or 5(b). Each of the rights and remedies enumerated above shall be independent of the other, and shall be severally enforceable, and all of such rights and remedies shall be in addition to, and not in lieu of, any other
rights and remedies available to the Company under law or in equity. 

  

	 	(iii)	If any of the covenants contained in Sections 5(a) or 5(b), or any part thereof, hereafter are construed to be invalid or unenforceable, the same shall not affect the remainder of
the covenant or covenants, which shall be given full effect, without regard to the invalid portions, to the maximum extent possible to carry out the intent of the parties. 

  

	 	(iv)	If any of the covenants contained in Sections 5(a) or 5(b), or any part thereof, are held to be unenforceable because of the duration of such provision or the area covered thereby,
the parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision and, in its reduced form, said provision shall then be enforceable. 

  

	 	(v)	 In the event that any action, suit or other proceeding in law or in equity is brought to enforce the covenants contained in Sections 5(a) and 5(b) or to obtain
money damages for the breach thereof, and such action results in the award of a judgment for money damages or in the granting of any injunction in favor of the 

  

 -11- 

	 	 
Company, all expenses (including reasonable attorneys’ fees) of the Company in such action, suit or other proceeding shall (on demand of the Company) be
paid by the Executive. 

 d. Representation of Executive. The Executive represents and warrants that he is
not party to, or bound by, any agreement or commitment, or subject to any restriction, including, but not limited to agreements related to previous employment containing confidentiality or non-compete covenants, which in the future may have a
possibility of adversely affecting the business of the Company or its subsidiaries or affiliates or the performance by the Executive of his duties under this Agreement. 
 6. Inventions and Patents. 
 a. Covered Inventions. The Executive agrees that all processes,
technologies and inventions, including new contributions, improvements, ideas and discoveries, of any type nature, description or purpose, the extent that same relate to the Business, whether patentable or not, conceived, developed, invented or made
or improved by him prior to or during the Employment Period, (collectively, “Covered Inventions”), whether during or outside normal business hours, whether or not on the Company’s premises, whether or not requested or financed by the
Company, shall immediately be communicated by the Executive to the Company and shall belong to the Company. The Executive does hereby assign all Covered Inventions, including all goodwill associated therewith, to the Company. The Executive shall
further (a) promptly disclose such Covered Inventions to the Company; (b) assign to the Company, without additional compensation, all patent and other rights to such Covered Inventions for the United States and foreign countries; and
(c) sign all papers necessary to carry out the foregoing. If any Covered Invention is described in a patent application or is disclosed to third parties, directly or indirectly, by the Executive within one (1) year after the termination of
the Executive’s engagement, it is to be presumed that the Invention was conceived or made during the Employment Period. 
 b.
Execution of Documents. The Executive shall at any time, whether during or after the term of this Agreement, at the request of the Company, execute all documents and do all acts and things as the Company may reasonably request, at the
Company’s sole expense, in connection with the obtaining of Patents in the United States of America or elsewhere for Covered Inventions on behalf of the Company. 
 7. Intellectual Property. The Company shall be the sole owner of all the products and proceeds of the Executive’s services hereunder, including, but not limited to, all inventions, materials, ideas,
concepts, formats, suggestions, developments, arrangements, packages, programs and other intellectual properties that the Executive may acquire, obtain, develop or create during the Employment Period related to the Business, free and clear of any
claims by the Executive (or anyone claiming under the Executive) of any kind or character whatsoever. The Executive does hereby assign all such properties described in the preceding sentence, including all goodwill associated therewith, to the
Company. The Executive shall, at the request of the Company, execute such confirmatory assignments, certificates or other instruments as the Company may from time to time deem necessary or desirable to evidence, establish, maintain, perfect,
protect, enforce or defend its right, title or interest in or to any such properties. 
 8. Certain Additional Payments by the Company. 
 a. Gross-Up Payments. Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or
distribution by, to or for the benefit of the Executive, whether made under this Agreement or otherwise (a “Payment”), would be subject to the excise tax imposed by either or both of Section 4999 or Section 409A of the Internal
Revenue Code of 1986, as amended (an “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a 

  

 -12- 

 
“Gross-Up Payment”) in an amount such that the net amount retained by the Executive, after deduction of any Excise Tax on the Payment and any U. S.
federal, Massachusetts, and local income or payroll tax upon the Gross-up Payment, but before deduction for any U.S. federal, state, and local income or payroll tax on the Payment, shall be equal to the Payment. For purposes of calculating the
Gross-Up Payment, the Executive shall be deemed to pay income taxes at the highest applicable marginal rate of federal, Massachusetts or local income taxation for the calendar year in which the Gross-Up Payment is to be made. 
 b. Determinations. All determinations required to be made under this Section 8, including whether a Gross-Up Payment is required and the
amount of such Gross-Up Payment, shall be made by the CFO and approved by the Compensation Committee. Upon such approval, the CFO shall provide detailed supporting calculations to the Executive within thirty (30) days of the event giving rise
to the Payment, if applicable. The Gross-Up Payment, if any, as determined pursuant to this Section 8(b), shall be paid to the Executive within ten (10) days of the approval of the determination thereof by the Compensation Committee. Any
determination approved by the Compensation Committee shall, except in the case of manifest error, be binding upon the Company and the Executive. If subsequent final determinations of the Excise Tax made by the Internal Revenue Service give rise to
additional Excise Tax, then additional Gross-Up Payments shall be made by the Company to the Executive within ten (10) days after notice is received by the Company of such final determination. 
 c. Notice of Claims. The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would
require the payment by the Company of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after the Executive knows of such claim. The Executive shall not pay such claim prior to
the expiration of the thirty-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in
writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 
  

	 	(i)	give the Company any information reasonably requested by the Company relating to such claim; 

  

	 	(ii)	take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney selected by the Company; 

  

	 	(iii)	cooperate with the Company in good faith in order effectively to contest such claim; and 

  

	 	(iv)	permit the Company to participate in any proceedings relating to such claim; 

 provided, however, that the Company shall bear all costs and expenses incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax
imposed as a result of such contest or representation and payment of costs and expenses. The Company shall control all proceedings taken in connection with such contest. The Company may, at its sole option, either direct the Executive to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine. 
  

 -13- 

 9. General. 
 a. Notices. All notices, requests, consents and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, sent by facsimile transmission
with confirmation, overnight courier or mailed first class, postage prepaid, by registered or certified mail (notices mailed shall be deemed to have been given on the date mailed), as follows (or to such other address as either party shall designate
by notice in writing to the other in accordance herewith): 
  

			
	 If to the Company, to:
  
 Chief Financial Officer
 Micronetics, Inc.
 28 Hampshire Drive
 Hudson, NH 03051
 Tel: 603-883-2900
 Fax:
603-882-8987
	  	 If to the Executive, to:
  
 David Robbins
 Micronetics, Inc.
 28 Hampshire Drive
 Hudson, NH 03051
 Tel: 603-883-2900
 Fax: 603-882-8987

		
	 With a copy to:
  
 Lea B. Pendleton, Esq.
 Morse, Barnes-Brown & Pendleton,
P.C.
 Reservoir Place
 1601 Trapelo Road
 Waltham, MA 02451
 Tel: 781-622-5930
 Fax: 781-622-5933
	  	With a copy to:

 b. Governing Law; Arbitration. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New Hampshire applicable to agreements made and to be performed entirely in New Hampshire. If a dispute arises between the parties respecting the terms of this Agreement or the Executive’s
employment with the Company, including, without limitation, any dispute with respect to the validity of this Agreement or of this arbitration clause (but excluding any dispute referenced in Section 5(c) or Section 8(b), which shall be
resolved pursuant to the terms of such Sections), such dispute shall be finally resolved by binding arbitration as follows. Either party may require that the dispute be submitted to binding arbitration, and in such event the dispute shall be settled
by arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association. If a matter is submitted to arbitration, each of the parties shall choose one arbitrator. The arbitrators
selected by the two parties shall choose a third arbitrator who shall act as chairman and shall be an attorney and member of the panel of the American Arbitration Association. Each party shall agree to a speedy hearing upon the matter in dispute and
the judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The place of arbitration shall be Hudson, New Hampshire. 
 c. Headings. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 
 d. Entire Agreement. This Agreement may be executed by facsimile signatures in one or more counterparts, each of which shall be deemed an
original. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof and supersedes all prior 

  

 -14- 

 
agreements, arrangements and understandings, written or oral, relating to the subject matter hereof. No representation, promise or inducement has been made
by either party that is not embodied in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement not so set forth. 
 e. Assignment; Binding Agreement. This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive.
The Company may assign its rights, together with its obligations, hereunder to a third party which shall acquire or succeed to substantially all of the business and assets of the Company in connection with a Change of Control of the Company. This
Agreement shall be binding on the parties hereto and their respective heirs, executors, administrators, successors and assigns. 
 f.
Amendment. This Agreement may be amended, modified, superseded, canceled, renewed or extended and the terms or covenants hereof may be waived, only by a written instrument executed by both of the parties hereto, or in the case of a waiver, by
the party waiving compliance. The failure of either party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by either party of the breach of any
term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or
covenant contained in this Agreement. 
 g. Survival. The provisions of this Agreement shall survive the termination of the
Executive’s employment hereunder and shall remain in force and effect until all obligations of the parties hereto to one another shall be carried out as contemplated herein. 
 h. Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and
provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 
 i. Headings. The Section and
subsection headings used in this Agreement are for convenience only and shall not be deemed to be a part of this Agreement. 
 [Remainder of
this page intentionally left blank] 
  

 -15- 

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

			
	MICRONETICS, INC.
		
	 By:
	 	 /s/ Diane Bourque

	 Name:
	 	Diane Bourque
	 Title:
	 	Chief Financial Officer
	
	THE EXECUTIVE:
	
	 /s/ David Robbins

	David Robbins

  

 -16-

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